By: Brown S.B. No. 1335 2001S0707/1 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain river authorities and water districts, the 1-3 codification of Acts creating and regulating the authorities and 1-4 districts, and the creation of the Texas Water Policy Council to 1-5 review the authorities and districts. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. The Water Code is amended by adding Title 6 to 1-8 read as follows: 1-9 TITLE 6. RIVER AUTHORITIES 1-10 SUBTITLE A. GENERAL PROVISIONS 1-11 CHAPTER 201. GENERAL PROVISIONS 1-12 Sec. 201.001. DEFINITIONS. In this title: 1-13 (1) "Commission" means the Texas Natural Resource 1-14 Conservation Commission. 1-15 (2) "River authority" means an authority or district 1-16 that was created under Section 52, Article III, or Section 59, 1-17 Article XVI, Texas Constitution, that is listed in Section 1-18 9.010(b), and that is regulated under Subtitle B or C. 1-19 Sec. 201.002. REVIEW. A river authority is subject to 1-20 review by the Texas Water Policy Council as provided by Chapter 9. 1-21 (Chapters 202 to 220 reserved for expansion 1-22 SUBTITLE B. RIVER AUTHORITIES NOT CREATED BY STATUTE 1-23 CHAPTER 221. BEXAR-MEDINA-ATASCOSA COUNTIES WATER 1-24 IMPROVEMENT DISTRICT NO. 1 1-25 Sec. 221.001. DISTRICT CREATED UNDER LAW. (a) The 2-1 "Bexar-Medina-Atascosa Counties Water Control and Improvement 2-2 District No. 1" is a water control and improvement district. The 2-3 district is a governmental agency and a body politic and corporate. 2-4 (b) The district was created under the laws of this state 2-5 and is essential to accomplish the purposes of Section 59, Article 2-6 XVI, Texas Constitution. 2-7 Sec. 221.002. DEFINITIONS. In this chapter: 2-8 (1) "Board" means the board of directors of the 2-9 district. 2-10 (2) "Director" means a member of the board. 2-11 (3) "District" means the Bexar-Medina-Atascosa 2-12 Counties Water Control and Improvement District No. 1. 2-13 Sec. 221.003. AUTHORITY TO EXCLUDE PROPERTY. (a) The 2-14 district may exclude property from the district if the board finds 2-15 after notice and hearing that exclusion of the property is in the 2-16 best interest of the district and that: 2-17 (1) the property is not irrigable with water purchased 2-18 from the district because: 2-19 (A) the district cannot deliver water by gravity 2-20 flow to a high point on the property to irrigate the property; 2-21 (B) the property is subdivided into tracts of 2-22 less than 10 acres; or 2-23 (C) the property is subdivided into town lots, 2-24 town lots and blocks, or similar small parcels of any size that 2-25 will not be used for agricultural purposes or are suitable for a 2-26 residential, a commercial, or another nonagricultural purpose; or 3-1 (2) the property has not been irrigated with water 3-2 purchased from the district for a period of not less than three 3-3 years before the date the notice for the hearing was mailed. 3-4 (b) The board may by resolution exclude land from the 3-5 district if the land was not included in the district at the time 3-6 the district was created and: 3-7 (1) the land has been subdivided into town lots and 3-8 blocks, with streets or other thoroughfares dedicated to the use of 3-9 the public; and 3-10 (2) a map and the dedication have been filed for 3-11 record with the county clerk of the county in which the land is 3-12 located. 3-13 (c) When a resolution under Subsection (b) is passed, the 3-14 secretary of the board shall enter it in the minutes of the board, 3-15 and from that time, the territory is excluded from the district and 3-16 is no longer entitled to be served with water by the district. 3-17 Sec. 221.004. HEARING ON PROPOSAL TO EXCLUDE PROPERTY; 3-18 NOTICE. (a) If the board has information that property in the 3-19 district is excludable under Section 221.003, the board may call 3-20 and hold a hearing to determine whether to exclude the property. 3-21 (b) The board by certified mail, return receipt requested, 3-22 not earlier than the 21st day or later than the 16th day before the 3-23 date of the hearing shall issue written notice of the hearing to 3-24 each owner of property in the area proposed to be excluded as shown 3-25 on the current tax rolls of the district. The notice must: 3-26 (1) describe the property proposed to be excluded; 4-1 (2) describe the basis for the proposed exclusion; 4-2 (3) state the time, date, and location of the hearing; 4-3 and 4-4 (4) advise that an interested property owner has the 4-5 right to appear at the hearing and to offer evidence to contest the 4-6 exclusion. 4-7 (c) The board shall publish notice of the hearing at least 4-8 once a week for two consecutive weeks in a newspaper of general 4-9 circulation in each county in which the property proposed to be 4-10 excluded is located. The first notice must appear not earlier than 4-11 the 40th day before or later than the 16th day before the date of 4-12 the hearing. The notice must: 4-13 (1) describe the property proposed to be excluded; 4-14 (2) state the time, date, and location of the hearing; 4-15 and 4-16 (3) advise that an interested property owner has the 4-17 right to appear at the hearing and to offer evidence to contest the 4-18 exclusion. 4-19 Sec. 221.005. CONSENT FROM HOLDERS OF INDEBTEDNESS. Before 4-20 a hearing on the exclusion of property, if the district has 4-21 outstanding bonded indebtedness or indebtedness under a loan from a 4-22 governmental agency, a written consent from an authorized 4-23 representative of the holder or holders of the indebtedness 4-24 consenting to the exclusion shall be obtained by and filed with the 4-25 district. 4-26 Sec. 221.006. SUIT TO REVIEW EXCLUSION; APPEAL. An 5-1 interested person may bring suit to review an order of the board 5-2 excluding property under this chapter in the manner provided by 5-3 Section 49.308 and may appeal as provided by that section. 5-4 Sec. 221.007. NOTICE TO COMMISSION. The board shall furnish 5-5 to the commission a copy of the order excluding property not later 5-6 than the 30th day after the date the board issues the order. 5-7 Sec. 221.008. RESULTS OF EXCLUSION ORDER. (a) Property 5-8 that has been excluded from the district under this chapter is not 5-9 entitled to purchase water from or to receive any other service 5-10 from the district. 5-11 (b) Taxes, assessments, or other charges on the excluded 5-12 property that are owed to the district at the time the order of 5-13 exclusion takes effect remain the obligation of the owner of the 5-14 excluded property and continue to be secured by statutory liens on 5-15 the property, if any. 5-16 (c) After property is excluded, the owner of the property 5-17 has no further liability to the district for future taxes, 5-18 assessments, or other charges of the district based on that 5-19 property. 5-20 Sec. 221.009. RECORDATION. After property has been excluded 5-21 from the district, the district shall record, in the real property 5-22 records of the county in which the excluded property is located, a 5-23 copy of the order excluding the property from the district. The 5-24 copy must be certified and acknowledged by the secretary of the 5-25 board. 5-26 Sec. 221.010. DISTRICT FACILITIES AND EASEMENTS ON EXCLUDED 6-1 PROPERTY. An order to exclude property does not affect or 6-2 interfere with any rights that the district has to maintain and 6-3 continue operation of any easements, canals, ditches, pipelines, 6-4 pumps, or other facilities of the district that are located on 6-5 excluded property for the purpose of servicing property remaining 6-6 in the district. 6-7 Sec. 221.011. SUBSTITUTION FOR EXCLUDED PROPERTY. (a) At 6-8 the sole discretion of the board, after an exclusion order is 6-9 issued by the board, property may be added to the district if the 6-10 property is: 6-11 (1) practically irrigable with water purchased from 6-12 the district; and 6-13 (2) in the aggregate, less than or equal to the 6-14 acreage of the property being excluded. 6-15 (b) Property may be added to the district under this chapter 6-16 only if the owner of the property files a petition requesting 6-17 inclusion. If the owner already has acreage within the district, 6-18 all taxes and other assessments owed to the district by the owner 6-19 must be current before the petition may be considered by the board. 6-20 Sec. 221.012. BOARD OF DIRECTORS. The district shall be 6-21 governed by a board of seven directors. A board election shall be 6-22 held on the first Saturday in May of even-numbered years. At each 6-23 election the appropriate number of directors shall be elected so 6-24 that the board consists of one director elected from each of the 6-25 district's five single-member precincts and two directors elected 6-26 from the district at large. 7-1 Sec. 221.013. TERMS OF DIRECTORS. The directors serve 7-2 staggered four-year terms. Three directors' terms expire May 1, 7-3 2002, and every fourth year after that date, and four directors' 7-4 terms expire May 1, 2004, and every fourth year after that date. 7-5 Sec. 221.014. QUALIFICATIONS OF DIRECTORS. A person seeking 7-6 to represent a single-member precinct of the district must own land 7-7 in the precinct to be represented. A person seeking to represent 7-8 the district at large must own land in the district. 7-9 Sec. 221.015. APPLICATION FOR PLACEMENT ON BALLOT. A person 7-10 seeking to be placed on the ballot for a board election must: 7-11 (1) indicate that the person wishes to run for a 7-12 position representing the district at large; or 7-13 (2) identify the single-member precinct from which the 7-14 person wishes to run. 7-15 CHAPTER 222. TARRANT REGIONAL WATER DISTRICT 7-16 Sec. 222.001. DISTRICT CREATED UNDER LAW. (a) The "Tarrant 7-17 Regional Water District" is a water control and improvement 7-18 district. The district is a governmental agency and a body politic 7-19 and corporate. 7-20 (b) The district was created under the laws of this state 7-21 and is essential to accomplish the purposes of Section 59, Article 7-22 XVI, Texas Constitution. 7-23 Sec. 222.002. DEFINITIONS. In this chapter: 7-24 (1) "Board" means the board of directors of the 7-25 district. 7-26 (2) "Director" means a member of the board. 8-1 (3) "District" means the Tarrant Regional Water 8-2 District. 8-3 Sec. 222.003. ANNEXATION OF TERRITORY. (a) Any territory 8-4 situated within Tarrant or Johnson County, either contiguous to the 8-5 district or not, may be annexed to the district as provided by this 8-6 section. 8-7 (b) A petition for annexation must: 8-8 (1) be signed by 50 or a majority, whichever number is 8-9 less, of the qualified voters of the territory to be annexed; 8-10 (2) be filed with the board; and 8-11 (3) describe the territory to be annexed by metes and 8-12 bounds or otherwise unless the territory is the same as that 8-13 contained in a city or town, in which event it will be sufficient 8-14 to state that the territory to be annexed is that contained within 8-15 the city or town or that portion of the city or town that is not 8-16 then contained in the district. 8-17 (c) If the board finds that the petition complies with and 8-18 is signed by the number of qualified voters required under 8-19 Subsection (b), that the annexation would be in the interest of the 8-20 territory to be annexed and the district, and that the district 8-21 will be able to supply water to the territory to be annexed or 8-22 cause water to be supplied to the territory, the board shall adopt 8-23 a resolution stating the conditions, if any, under which the 8-24 territory may be annexed to the district and requesting the 8-25 commissioners court of Tarrant or Johnson County to annex the 8-26 territory to the district. The resolution shall be conclusive of 9-1 the legal sufficiency of the petition and the qualifications of the 9-2 signers. A certified copy of the resolution and of the petition 9-3 shall be filed with the commissioners court. 9-4 (d) The commissioners court shall adopt a resolution 9-5 declaring its intention to call an election in the territory to be 9-6 annexed for the purpose of submitting the proposition of whether 9-7 the territory shall be annexed to the district. The commissioners 9-8 court shall set a time and place for a hearing to be held by the 9-9 commissioners court on the question of whether the territory to be 9-10 annexed will benefit from the improvements, works, and facilities 9-11 then owned or operated or contemplated to be owned or operated by 9-12 the district or by the other functions of the district. Because 9-13 railroad right-of-way that is not situated within the defined 9-14 limits of an incorporated city or town will not benefit from the 9-15 improvements, works, and facilities that the district is authorized 9-16 to construct, railroad right-of-way may not be annexed to the 9-17 district unless the right-of-way is contained within the limit of 9-18 an incorporated city or town that has been annexed to the district. 9-19 (e) Notice of the adoption of the resolution stating the 9-20 time and place of the hearing, addressed to the citizens and owners 9-21 of property in the territory to be annexed, shall be published one 9-22 time in a newspaper designated by the commissioners court at least 9-23 10 days before the date of the hearing. The notice must describe 9-24 the territory to be annexed in the same manner in which it is 9-25 required or permitted by this chapter to be described in the 9-26 petition. 10-1 (f) All interested persons may appear at the hearing and 10-2 offer evidence for or against the intended annexation. The hearing 10-3 may proceed in the order and under the rules that may be prescribed 10-4 by the commissioners court and may be recessed from time to time. 10-5 If, at the conclusion of the hearing, the commissioners court finds 10-6 that all the lands in the territory to be annexed will benefit from 10-7 the present or contemplated improvements, works, or facilities of 10-8 the district, the commissioners court shall adopt a resolution 10-9 calling an election in the territory to be annexed stating the date 10-10 and place or places for holding the election and appointing a 10-11 presiding judge for each voting place, who shall appoint the 10-12 necessary assistant judges and clerks to assist in holding the 10-13 election. 10-14 (g) Notice of the election, stating the date and places for 10-15 holding the election, the proposition to be voted on, and the 10-16 conditions under which the territory may be annexed, or making 10-17 reference to the resolution of the board for that purpose, shall be 10-18 published one time in a newspaper designated by the commissioners 10-19 court at least 10 days before the date set for the election. 10-20 (h) Only qualified electors who reside in the territory 10-21 sought to be annexed may vote in the election. Returns of the 10-22 election shall be made to the commissioners court. 10-23 (i) The commissioners court shall canvass the returns of the 10-24 election and adopt an order declaring the results. If the 10-25 commissioners court finds from the returns that a majority of the 10-26 votes cast are in favor of annexation, the commissioners court 11-1 shall annex the territory to the district, and the annexation shall 11-2 be incontestable except in the manner and within the time for 11-3 contesting elections under the Election Code. A certified copy of 11-4 the order shall be recorded in the deed records of the county in 11-5 which the territory is situated. 11-6 (j) In calling the election on the proposition for 11-7 annexation of territory, the commissioners court may also submit a 11-8 proposition for the assumption of the territory's part of the 11-9 tax-supported bonds of the district then outstanding and those 11-10 previously voted but not yet sold and for the levy of an ad valorem 11-11 tax on taxable property in the territory to be annexed along with 11-12 the tax in the rest of the district for the payment of the bonds. 11-13 (k) After territory is added to the district, the board may 11-14 call an election over the entire district for the purpose of 11-15 determining whether the entire district as enlarged shall assume 11-16 the tax-supported bonds then outstanding and those voted but not 11-17 yet sold and whether an ad valorem tax shall be levied on all 11-18 taxable property within the district as enlarged for the payment of 11-19 the bonds, unless the proposition had been voted along with the 11-20 annexation election and becomes lawfully binding on the territory 11-21 annexed. The election shall be called and held in the same manner 11-22 as elections for the issuance of bonds as provided by this chapter. 11-23 (l) If the territory of more than one city is proposed to be 11-24 annexed to the district, separate elections shall be held in each 11-25 city, and only the territory of the city or cities in which a 11-26 majority vote favors annexation shall be annexed. If two or more 12-1 areas which are not contiguous to each other are proposed to be 12-2 annexed to the district, separate elections shall be held in each 12-3 area, and only the area or areas in which a majority vote favors 12-4 annexation shall be annexed. 12-5 (m) If the election for the assumption of indebtedness 12-6 fails, the commissioners court shall, on request of the board, 12-7 enter an order detaching the territory from the district. 12-8 (n) All expenses of hearings and elections held under this 12-9 chapter shall be paid by the district. 12-10 Sec. 222.004. BONDS. (a) For the purpose of providing a 12-11 source of water supply for cities and other users for municipal, 12-12 domestic, industrial, and mining purposes and for the purpose of 12-13 carrying out any other power or authority of the district, the 12-14 district may issue negotiable bonds payable from revenues or taxes 12-15 or both revenues and taxes of the district as pledged by resolution 12-16 of the board. Pending the issuance of definitive bonds, the board 12-17 may authorize the delivery of negotiable interim bonds or notes 12-18 eligible for exchange or substitution by use of the definitive 12-19 bonds. 12-20 (b) Bonds of the district must be authorized by resolution 12-21 of the board, issued in the name of the district, signed by the 12-22 president or vice president of the board, and attested by the 12-23 secretary of the board and must bear the seal of the district. The 12-24 facsimile signatures of the president or of the secretary or of 12-25 both may be printed or lithographed on the bonds if authorized by 12-26 the board. The seal of the district may be impressed on the bonds 13-1 or may be printed or lithographed on the bonds. 13-2 (c) Bonds must mature serially or otherwise in not to exceed 13-3 40 years and may be sold at a price and under terms determined by 13-4 the board to be the most advantageous reasonably obtainable, 13-5 provided that the interest cost to the district, including the 13-6 discount, if any, calculated by use of standard bond interest 13-7 tables currently in use by insurance companies and investment 13-8 houses does not exceed six percent per year, which may be evidenced 13-9 by coupons. Within the discretion of the board, the bonds may be 13-10 made callable prior to maturity at such times and prices as may be 13-11 prescribed in the resolution authorizing the bonds and may be made 13-12 registrable as to principal or as to both principal and interest. 13-13 (d) Bonds may be issued in more than one series and from 13-14 time to time as required for carrying out the powers of the 13-15 district. 13-16 (e) Bonds may be secured by a pledge of all or part of the 13-17 net revenues of the district, of the net revenues of one or more 13-18 contracts made before or after the bonds are issued, or of other 13-19 revenues or income specified by resolution of the board in the 13-20 trust indenture. A pledge may reserve the right, under conditions 13-21 specified in the pledge, to issue additional bonds that will be on 13-22 a parity with or subordinate to the bonds being issued. 13-23 (f) The district may issue bonds payable from ad valorem 13-24 taxes to be levied on all taxable property in the district or may 13-25 issue bonds secured by and payable from both those taxes and the 13-26 revenues of the district. If bonds are issued payable wholly or 14-1 partially from ad valorem taxes, the board shall levy a tax 14-2 sufficient to pay the bonds and the interest on the bonds as the 14-3 bonds and interest become due. The rate of the tax for any year 14-4 may be set after giving consideration to the money received from 14-5 the pledged revenues that may be available for payment of the 14-6 principal and interest to the extent and in the manner permitted by 14-7 the resolution authorizing the issuance of the bonds. 14-8 (g) If bonds payable wholly from revenues are issued, the 14-9 board shall set, and may from time to time revise, rates of 14-10 compensation for water sold and services rendered by the district 14-11 that will be sufficient to pay the expense of operating and 14-12 maintaining the facilities of the district and to pay the bonds as 14-13 they mature and the interest on the bonds as it accrues and to 14-14 maintain the reserve and other funds as provided in the resolution 14-15 authorizing the bonds. If bonds payable partially from revenues 14-16 are issued, the board shall set rates of compensation for water 14-17 sold and services rendered by the district that will be sufficient 14-18 to assure compliance with the resolution authorizing the bonds. 14-19 (h) From the proceeds of the sale of bonds, the district may 14-20 set aside an amount for the payment of interest expected to accrue 14-21 during construction and for a reserve interest and sinking fund, 14-22 and this provision may be made in the resolution authorizing the 14-23 bonds. Proceeds from the sale of the bonds may also be used for 14-24 the payment of all expenses necessarily incurred in accomplishing 14-25 the purposes for which the district is created, including the 14-26 expenses of issuing and selling the bonds. The proceeds from the 15-1 sale of the bonds may be temporarily invested in direct obligations 15-2 of the United States government. 15-3 (i) In the event of a default or a threatened default in the 15-4 payment of principal of or interest on bonds payable wholly or 15-5 partially from revenues, any court of competent jurisdiction may, 15-6 on petition of the holders of outstanding bonds, appoint a receiver 15-7 with authority to collect and receive all income of the district 15-8 except taxes, employ and discharge agents and employees of the 15-9 district, take charge of the district's funds on hand except funds 15-10 received from taxes, unless commingled, and manage the proprietary 15-11 affairs of the district without consent or hindrance by the board. 15-12 The receiver may also be authorized to sell or make contracts for 15-13 the sale of water or renew such contracts with the approval of the 15-14 court appointing the receiver. The court may vest the receiver 15-15 with such other powers and duties as the court finds necessary for 15-16 the protection of the holders of the bonds. The resolution 15-17 authorizing the issuance of the bonds or the trust indenture 15-18 securing them may limit or qualify the rights of less than all of 15-19 the outstanding bonds payable from the same source to institute or 15-20 prosecute any litigation affecting the district's property or 15-21 income. 15-22 Sec. 222.005. REFUNDING BONDS. (a) The district may issue 15-23 refunding bonds for the purpose of refunding any outstanding bonds 15-24 and interest on the bonds. Refunding bonds may be issued to refund 15-25 more than one series of outstanding bonds and combine the pledges 15-26 for the outstanding bonds for the security of the refunding bonds 16-1 and may be secured by other or additional revenues and mortgage 16-2 liens. 16-3 (b) The provisions of this chapter with respect to the 16-4 issuance by the district of other bonds, their security, their 16-5 approval by the attorney general, and the remedies of the holders 16-6 shall be applicable to refunding bonds. Refunding bonds shall be 16-7 registered by the comptroller on surrender and cancellation of the 16-8 bonds to be refunded, but in lieu of that procedure, the resolution 16-9 authorizing the issuance of the refunding bonds may provide that 16-10 the refunding bonds shall be sold and the proceeds of the sale 16-11 deposited in the bank where the original bonds are payable, in 16-12 which case the refunding bonds may be issued in an amount 16-13 sufficient to pay the principal of and the interest on the original 16-14 bonds to their option date or maturity date, and the comptroller 16-15 shall register the refunding bonds without concurrent surrender and 16-16 cancellation of the original bonds. 16-17 Sec. 222.006. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE 16-18 LIEN. (a) Bonds, including refunding bonds, authorized by this 16-19 chapter that are not payable wholly from ad valorem taxes may be 16-20 additionally secured by a trust indenture under which the trustee 16-21 may be a bank with trust powers located either within or outside 16-22 the state. The bonds, within the discretion of the board, may be 16-23 additionally secured by a deed of trust or mortgage lien on 16-24 physical properties of the district and all franchises, easements, 16-25 water rights and appropriation permits, leases and contracts, and 16-26 all rights appurtenant to the properties, vesting in the trustee 17-1 power to sell the properties for the payment of the indebtedness, 17-2 power to operate the properties, and all other powers and authority 17-3 for the further security of the bonds. 17-4 (b) The trust indenture, regardless of the existence of a 17-5 deed of trust or mortgage lien on the properties, may contain any 17-6 provisions prescribed by the board for the security of the bonds 17-7 and the preservation of the trust estate, may make provision for 17-8 amendment or modification of the trust indenture and for the 17-9 issuance of bonds to replace lost or mutilated bonds, may condition 17-10 the right to expend district money or sell district property on 17-11 approval by a registered professional engineer selected as provided 17-12 in the trust indenture, and may make provision for the investment 17-13 of funds of the district. 17-14 (c) A purchaser under a sale under a deed of trust lien, 17-15 where one is given, shall be the absolute owner of the properties, 17-16 facilities, and rights purchased and shall have the right to 17-17 maintain and operate the properties, facilities, and rights. 17-18 Sec. 222.007. BOND ELECTIONS. (a) Bonds payable wholly or 17-19 partially from ad valorem taxes, except refunding bonds, may not be 17-20 issued unless authorized by a majority vote at an election. Only 17-21 the qualified voters who reside in the district shall be permitted 17-22 to vote at the election. Bonds not payable wholly or partially 17-23 from ad valorem taxes may be issued without an election. 17-24 (b) An election described by Subsection (a) may be called by 17-25 the board without a petition. The resolution calling the election 17-26 shall specify the time and location of the election, the purpose 18-1 for which the bonds are to be issued, the maximum amount of the 18-2 bonds, the maximum maturity of the bonds, the form of the ballot, 18-3 and the presiding judge for each voting place. The presiding judge 18-4 serving at each voting place shall appoint one assistant judge and 18-5 at least two clerks to assist in holding the election. Notice of 18-6 the election shall be given by publishing a substantial copy of the 18-7 resolution calling the election in a newspaper with general 18-8 circulation in Tarrant County once each week for two consecutive 18-9 weeks. The first publication must be at least 21 days before the 18-10 election. 18-11 (c) The returns of the election shall be made to and 18-12 canvassed by the board. 18-13 (d) The general laws relating to elections are applicable to 18-14 elections held under this section except as otherwise provided by 18-15 this chapter. 18-16 Sec. 222.008. APPROVAL AND REGISTRATION OF BONDS. After 18-17 bonds, including refunding bonds, are authorized by the district, 18-18 the bonds and the record relating to their issuance shall be 18-19 submitted to the attorney general for examination as to their 18-20 validity. If the bonds recite that they are secured by a pledge of 18-21 the proceeds of a contract previously made between the district and 18-22 a city or other governmental agency, authority, or district, a copy 18-23 of the contract and the proceedings of the city or other 18-24 governmental agency, authority, or district authorizing the 18-25 contract shall also be submitted to the attorney general. If the 18-26 bonds have been authorized and if any such contract has been made 19-1 in accordance with the constitution and laws of the state, the 19-2 attorney general shall approve the bonds and the contract, and the 19-3 bonds then shall be registered by the comptroller. After approval 19-4 and registration, the bonds and the contract, if any, are valid and 19-5 binding and are incontestable for any cause. 19-6 Sec. 222.009. CHAPTER AS FULL AUTHORITY. The provisions of 19-7 this chapter with reference to the issuance of bonds are complete, 19-8 and no proceedings or approvals shall be required except those 19-9 required by this chapter. 19-10 Sec. 222.010. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 19-11 DEPOSITS. Bonds of the district are legal and authorized 19-12 investments for banks, savings banks, trust companies, building and 19-13 loan associations, savings and loan associations, insurance 19-14 companies, fiduciaries, trustees, and guardians and for the sinking 19-15 funds of cities, towns, villages, counties, school districts, or 19-16 other political corporations or subdivisions of the state. The 19-17 bonds are eligible to secure the deposits of all public funds of 19-18 the state and all public funds of cities, towns, villages, 19-19 counties, school districts, or other political corporations or 19-20 subdivisions of the state, and the bonds are lawful and sufficient 19-21 security for such deposits to the extent of their value when 19-22 accompanied by all unmatured coupons. 19-23 Sec. 222.011. CONTRACTS WITH CITIES AND OTHERS. The 19-24 district may enter into contracts with cities and others for the 19-25 supply of water. The district may also contract with a city for 19-26 the rental or leasing of or for the operation of the water 20-1 production, water supply, or water filtration or purification and 20-2 water supply facilities of the city for such consideration as the 20-3 district and the city may agree. The contract may be on such terms 20-4 and for such time as the parties may agree and may provide that it 20-5 shall continue in effect until bonds specified in the contract and 20-6 refunding bonds issued in lieu of such bonds are paid. 20-7 Sec. 222.012. EXEMPTION FROM TAXATION. The accomplishment 20-8 of the purposes stated in this chapter is for the benefit of the 20-9 people of this state and for the improvement of their properties 20-10 and industries, and the district, in carrying out the purposes of 20-11 this chapter, will be performing an essential public function under 20-12 Section 59, Article XVI, Texas Constitution. The district shall 20-13 not be required to pay any tax or assessment on its properties or 20-14 any part of its properties, and the bonds issued under this chapter 20-15 and the transfer of and income from the bonds, including profits 20-16 made on the sale of the bonds, shall at all times be free from 20-17 taxation within the state. 20-18 Sec. 222.013. DEPOSITORY. The board may select more than 20-19 one depository. 20-20 Sec. 222.014. PURCHASE OF PROPERTY. The district may 20-21 purchase the properties of any other water district located wholly 20-22 or partially in the district for such consideration as may be 20-23 agreed on by the board and the boards of directors of the other 20-24 districts, which consideration may be or include the assumption by 20-25 the district of the outstanding bonds of the district from which 20-26 the purchase is made. If the district proposes to pay such assumed 21-1 bonds by the levy of a tax, the bonds shall be assumed by an 21-2 election called and held over the entire district in the manner 21-3 provided by this chapter for the authorization of bonds. 21-4 Sec. 222.015. SEWAGE TRANSPORTATION, TREATMENT, AND 21-5 DISPOSAL. (a) The district may purchase, construct, improve, and 21-6 repair works and facilities necessary for the transportation, 21-7 treatment, and disposal of sewage and industrial wastes and 21-8 effluent and may issue negotiable bonds for those purposes. The 21-9 district may make contracts with cities and others under which the 21-10 district will transport, treat, and dispose of sewage from the 21-11 cities. The district may also make contracts with a city for the 21-12 use of certain sewage transportation, treatment, and disposal 21-13 facilities owned by the city or by the district. 21-14 (b) Bonds issued under this section may be payable from the 21-15 revenues under any contract or contracts or other income and, if 21-16 authorized by an election, bonds may be made payable from taxes or 21-17 from taxes and revenues. The provisions of this chapter relating 21-18 to bonds issued by the district shall be applicable to bonds issued 21-19 under this section. 21-20 (c) The district may have its bonds and sewer contracts 21-21 approved by the attorney general with the effect prescribed in this 21-22 chapter or, in the discretion of the board, may have its bonds and 21-23 sewer contracts validated by a suit in the district court as 21-24 provided in Chapter 1205, Government Code, or may have the bonds 21-25 and contracts validated by suit and approved. The interest rate 21-26 and sale price of the bonds need not be set until after the 22-1 termination of the validation proceedings or suit. 22-2 (d) If the proposed bonds recite that they are secured by a 22-3 pledge of the proceeds of a contract or contracts previously made 22-4 between the district and one or more cities, the petition shall so 22-5 allege and the notice of the suit shall mention the allegation and 22-6 the city fund or revenues from which the contract or contracts are 22-7 payable. The suit shall be in the nature of a proceeding in rem. 22-8 The judgment shall be res judicata as to the validity of the 22-9 contract or contracts and the pledge of the revenues of the 22-10 contracts. 22-11 Sec. 222.016. EMINENT DOMAIN. If the district, in the 22-12 exercise of any of the powers granted under this chapter, whether 22-13 it be the power of eminent domain, the power of relocation, or any 22-14 other power, makes necessary the relocation, raising, rerouting, 22-15 changing the grade, or altering the construction of any highway, 22-16 railroad, electric transmission line, telephone or telegraph 22-17 properties and facilities, or pipeline, all such necessary 22-18 relocation, raising, rerouting, changing the grade, or alteration 22-19 of construction shall be accomplished at the sole expense of the 22-20 district. In this section, "sole expense" means the actual cost of 22-21 such relocation, raising, lowering, rerouting, change in grade, or 22-22 alteration of construction in providing comparable replacement 22-23 without enhancement of the facilities, after deducting the net 22-24 salvage value derived from the old facility. The power of eminent 22-25 domain exercised by the district under this chapter shall be 22-26 limited to Tarrant County. 23-1 CHAPTER 223. TITUS COUNTY FRESH WATER SUPPLY DISTRICT NO. 1 23-2 Sec. 223.001. DISTRICT CREATED UNDER LAW. (a) The "Titus 23-3 County Fresh Water Supply District No. 1" is a governmental agency 23-4 and a body politic and corporate. 23-5 (b) The district was created under the laws of this state 23-6 and is essential to accomplish the purposes of Section 59, Article 23-7 XVI, Texas Constitution. 23-8 Sec. 223.002. DEFINITIONS. In this chapter: 23-9 (1) "Board" means the board of supervisors of the 23-10 district. 23-11 (2) "District" means the Titus County Fresh Water 23-12 Supply District No. 1. 23-13 (3) "Supervisor" means a member of the board. 23-14 Sec. 223.003. TERRITORY. The district includes all of the 23-15 territory contained within the boundaries of Titus County. 23-16 Sec. 223.004. PERMITS AND CERTIFICATION FROM COMMISSION. 23-17 (a) The district shall obtain from the commission all permits 23-18 necessary under general law for the acquisition of water. 23-19 (b) Before the district issues any bonds to construct a 23-20 reservoir and related facilities for conserving, transporting, and 23-21 distributing freshwater, it shall secure prior certification of 23-22 feasibility from the commission as provided by Section 49.181. 23-23 Sec. 223.005. BOARD OF SUPERVISORS. (a) The district is 23-24 governed by a board of five elected supervisors as provided by the 23-25 laws relating to freshwater supply districts. 23-26 (b) Supervisors shall serve for staggered terms of two 24-1 years. Supervisors hold office until their successors are chosen 24-2 and have qualified. An election shall be held on the second 24-3 Tuesday of January of each even-numbered year to elect two 24-4 supervisors and on the second Tuesday of January of each 24-5 odd-numbered year to elect three supervisors to replace those whose 24-6 terms are expiring. 24-7 (c) An election for supervisors shall be called by 24-8 resolution of the board, and the results of the election shall be 24-9 canvassed and declared by the board. The board shall designate the 24-10 place or places of holding the election and shall name the election 24-11 officers. The board is responsible for election supplies and 24-12 expenses. 24-13 (d) A vacancy on the board shall be filled for the unexpired 24-14 term by appointment made by the remainder of the board. If the 24-15 number of supervisors is reduced to less than three for any reason, 24-16 the remaining supervisors shall immediately call a special election 24-17 to fill the vacant positions. If the board fails to call an 24-18 election as required by this subsection, a district court may, on 24-19 the application of a voter or taxpayer of the district, issue an 24-20 order requiring that an election be called by the remaining 24-21 supervisors. 24-22 (e) Notice of an election shall be published in a newspaper 24-23 of general circulation in the county one time at least 30 days 24-24 before the date of the election. 24-25 (f) Any person desiring that the person's name be printed on 24-26 the ballot as a candidate for supervisor shall file a petition, 25-1 signed by not less than 25 qualified voters, asking that the 25-2 person's name be printed on the ballot. The petition shall be 25-3 filed with the secretary of the board at least 30 days before the 25-4 date of the election. 25-5 Sec. 223.006. DISTRICT TAXES. (a) In addition to the 25-6 powers set forth in the laws relating to freshwater supply 25-7 districts, the district by resolution of the board may authorize 25-8 the assessor and collector of taxes for Titus County to assess and 25-9 collect taxes for the district. 25-10 (b) Not later than July 20 of each year, the board shall 25-11 levy the tax on all taxable property within the district that is 25-12 subject to taxation and shall immediately certify the tax rate to 25-13 the assessor and collector of taxes for Titus County. The tax so 25-14 levied shall be collected on all property subject to taxation by 25-15 the assessor and collector of taxes for Titus County on the county 25-16 tax values and in the same manner and under the same conditions as 25-17 county taxes. 25-18 (c) The assessor and collector of taxes shall charge and 25-19 deduct from payments to the district the fees for assessing and 25-20 collecting the tax at a rate determined by the board; provided, 25-21 however, that the fees may not exceed two percent of the amounts 25-22 collected and may not exceed $5,000 for any one year. The fees 25-23 shall be deposited in the county's general fund and shall be 25-24 reported as fees of office of the assessor and collector of taxes. 25-25 (d) Interest and penalties on taxes paid to the district 25-26 shall be the same as for county taxes. 26-1 (e) The residue of tax collections, after deduction of 26-2 discounts and fees of assessing and collecting the taxes, shall be 26-3 deposited in the district depository. 26-4 Sec. 223.007. GENERAL POWERS AND DUTIES. (a) In addition 26-5 to the powers set forth in the laws relating to freshwater supply 26-6 districts and other laws relating specifically to the district, the 26-7 district may enter into agreements with the state or any of its 26-8 agencies, including the Texas Water Development Board, in order 26-9 that the district may effect its purposes of conserving, 26-10 transporting, and distributing freshwater as contemplated by 26-11 Section 59, Article XVI, Texas Constitution, and laws that have 26-12 been enacted pursuant to that section. 26-13 (b) An agreement under Subsection (a) may provide that the 26-14 district may develop, construct, own, and operate facilities 26-15 jointly with the state or its agencies, may develop, construct, and 26-16 operate the facilities on behalf of the state or its agencies, or 26-17 may permit the state or its agencies to develop, construct, or 26-18 operate facilities on behalf of the district. 26-19 Sec. 223.008. ADDITIONAL SPECIFIC POWERS. (a) In addition 26-20 to the powers set forth in the laws relating to freshwater supply 26-21 districts, the district may make contracts with cities, private 26-22 corporations, and others under which the district will sell water 26-23 to the parties. The district may pledge the proceeds from one or 26-24 more contracts for the payment of bonds issued by the district. 26-25 (b) In addition to the authority granted by Section 49.222, 26-26 the district may exercise the power of eminent domain to acquire 27-1 land: 27-2 (1) for roads; 27-3 (2) to prevent pollution; and 27-4 (3) for the construction of water filtration plants 27-5 and distribution lines and sanitary disposal plants and related 27-6 facilities. 27-7 (c) The district may lease any land acquired by eminent 27-8 domain to private persons, firms, or corporations for the 27-9 construction of recreational facilities, boating facilities, 27-10 motels, lodges, homesites, and related facilities. 27-11 (d) The district may construct and operate water filtration 27-12 plants and distribution lines, distribution systems for raw and 27-13 filtered water, and sanitary sewage disposal plants and related 27-14 facilities. Revenue bonds of the district may be issued to pay for 27-15 these plants and facilities. 27-16 (e) If the district, in the exercise of the power of eminent 27-17 domain or power of relocation or any other power granted by this 27-18 chapter, makes necessary the relocation, raising, rerouting, 27-19 changing the grade, or altering the construction of any highway, 27-20 railroad, electric transmission line, telegraph or telephone 27-21 properties and facilities, or pipeline, all such necessary 27-22 relocation, raising, rerouting, changing the grade, or alteration 27-23 of construction shall be accomplished at the sole expense of the 27-24 district. In this subsection, "sole expense" means the actual cost 27-25 of such relocation, raising, lowering, rerouting, change in grade, 27-26 or alteration of construction in providing comparable replacement 28-1 without enhancement of the facilities, after deducting the net 28-2 salvage value derived from the old facility. 28-3 Sec. 223.009. CONFLICTS. Nothing in this chapter shall be 28-4 construed to violate any provision of the federal or state 28-5 constitutions, and all acts done under this chapter shall be done 28-6 in such manner as will conform to those constitutions, whether 28-7 expressly provided or not. If any procedure under this chapter is 28-8 held by any court to be a violation of either of those 28-9 constitutions, the district shall have the power by resolution to 28-10 provide an alternative procedure that conforms to those 28-11 constitutions. 28-12 (Chapters 224 to 250 reserved for expansion 28-13 SUBTITLE C. RIVER AUTHORITIES CREATED BY STATUTE 28-14 CHAPTER 251. ANGELINA AND NECHES RIVER AUTHORITY 28-15 Sec. 251.001. CREATION. (a) A conservation and reclamation 28-16 district to be known as the "Angelina and Neches River Authority" 28-17 is created. The authority is a governmental agency and a body 28-18 politic and corporate. 28-19 (b) The authority is created under and is essential to 28-20 accomplish the purposes of Section 59, Article XVI, Texas 28-21 Constitution. 28-22 (c) The authority may exercise the powers granted by Section 28-23 59, Article XVI, Texas Constitution, to districts created to 28-24 conserve, store, control, preserve, utilize, and distribute the 28-25 storm waters, floodwaters, and waters of the rivers and streams of 28-26 the state and any powers contemplated and implied by the purposes 29-1 of that section or conferred by general law and the provisions of 29-2 this chapter. 29-3 (d) Nothing in this chapter shall authorize the authority to 29-4 levy any taxes or special assessments or to create any debt payable 29-5 out of taxation. 29-6 (e) The authority may exercise all the rights and powers of 29-7 an independent governmental agency and a body politic and corporate 29-8 to construct, maintain, and operate in the valleys of the Neches 29-9 River and its tributaries, within or outside the boundaries of the 29-10 authority, works considered essential to the operation and 29-11 administration of the authority in the control, storing, 29-12 preservation, and distribution to all useful purposes of the waters 29-13 of the Neches River and its tributary streams, including the storm 29-14 waters and floodwaters of the river and the streams. The authority 29-15 may exercise the authority and power of control and regulation over 29-16 the waters of the Neches River and its tributaries as may be 29-17 exercised by the state, subject to the provisions of the 29-18 constitution and the acts of the legislature. 29-19 (f) The rights, powers, privileges, authority, and functions 29-20 granted to the authority and the authority itself are expressly 29-21 subject to Sections 17.183-17.188, Sections 17.271-17.277, and 29-22 Chapters 11, 12, 26, and 49. 29-23 Sec. 251.002. DEFINITIONS. In this chapter: 29-24 (1) "Authority" means the Angelina and Neches River 29-25 Authority. 29-26 (2) "Board" means the board of directors of the 30-1 authority. 30-2 (3) "Director" means a member of the board. 30-3 Sec. 251.003. COORDINATION WITH OTHER DISTRICTS. A 30-4 drainage, conservation, reclamation, or other district created as 30-5 provided by Section 59, Article XVI, Texas Constitution, may 30-6 coordinate its plans with the authority and may enter into joint 30-7 undertakings for the purposes for which the authority and the 30-8 district are created. Any joint undertakings must be approved by a 30-9 majority of the boards of directors of the authority and the 30-10 districts involved. 30-11 Sec. 251.004. BOUNDARIES. (a) The territory to be included 30-12 within the boundaries of the authority shall be that part of the 30-13 state defined as follows: All that territory lying and being 30-14 situated within the watershed of the Neches River and its 30-15 tributaries, and which includes the following named counties, lying 30-16 wholly or in part within said watershed: Van Zandt, Angelina, 30-17 Nacogdoches, San Augustine, Sabine, Jasper, Newton, Rusk, Shelby, 30-18 Houston, Trinity, Polk, and Orange, and that portion of the 30-19 drainage area of Flat Creek in Henderson County which lies west of 30-20 presently designated Farm-to-Market Road 607 leading from LaRue 30-21 through Leagueville to Brownsboro; provided that there is excepted 30-22 from the area covered by the Angelina and Neches River Authority 30-23 all the area presently covered by the Lower Neches Valley Authority 30-24 and the Upper Neches River Municipal Water Authority. 30-25 (b) It is the intent of the legislature to preserve the area 30-26 and authority of the Lower Neches Valley Authority, the Upper 31-1 Neches River Municipal Water Authority, and the Neches River 31-2 Conservation District existing on August 29, 1977. 31-3 Sec. 251.005. BOARD OF DIRECTORS. (a) The management and 31-4 control of the affairs of the authority are vested in a board of 31-5 directors consisting of nine members, who must be freehold property 31-6 taxpayers and legal voters of the state. 31-7 (b) Directors are appointed by the governor with the advice 31-8 and consent of the senate and serve staggered six-year terms. The 31-9 directors shall hold office after their appointment and 31-10 qualification until their successors are appointed and have 31-11 qualified. 31-12 (c) A vacancy on the board is filled by the governor in the 31-13 manner provided by this section for the unexpired term. Within 15 31-14 days after appointment, a director shall qualify by taking the 31-15 official oath and filing a good and sufficient bond with the 31-16 secretary of state. The official bond of each director, in the 31-17 amount of $1,000, shall be payable to the authority and conditioned 31-18 on the faithful performance of the director's duties and is subject 31-19 to approval by the secretary of state. 31-20 Sec. 251.006. OFFICERS; VOTING REQUIREMENTS; WARRANTS. The 31-21 board shall elect a president, vice president, and 31-22 secretary-treasurer. Five directors constitute a quorum at board 31-23 meetings, and a concurrence of a majority of those present shall be 31-24 sufficient in all matters pertaining to the business of the 31-25 authority, except that the letting of construction contracts and 31-26 the authorization of the issuance of warrants paying such contracts 32-1 require the concurrence of five directors. Warrants for the 32-2 payment of money may be drawn and signed by the secretary-treasurer 32-3 and president when such accounts have been contracted and ordered 32-4 paid by the board. 32-5 Sec. 251.007. OFFICER AND EMPLOYEE BONDS. The board shall 32-6 require an officer or employee who collects, pays, or handles any 32-7 funds of the authority under board orders to furnish good and 32-8 sufficient bond, with a duly authorized surety company payable to 32-9 the authority, conditioned on the faithful performance of the 32-10 person's duties and accounting for all funds and property of the 32-11 authority coming into the person's hands. Bonds required by this 32-12 section shall be in sufficient amounts to safeguard the authority. 32-13 Sec. 251.008. DUTIES OF OFFICERS; MEETINGS. (a) The 32-14 president is the chief executive officer of the authority and 32-15 presides at board meetings. The vice president acts as president 32-16 in case of the absence or disability of the president. 32-17 (b) The secretary-treasurer acts as the secretary of the 32-18 board and is responsible for keeping a record of all proceedings 32-19 and all orders of the board. The secretary-treasurer shall receive 32-20 and receipt for all funds received by the authority and shall keep 32-21 books and records of all funds received and expended. In case of 32-22 the absence or inability of the secretary-treasurer to act, a 32-23 secretary pro tempore shall be selected by the board. 32-24 (c) The board shall hold its meetings at its office and 32-25 principal place of business, unless it directs otherwise for 32-26 specific occasions when called by order of the president, vice 33-1 president, or a majority of its members. The board shall set, by 33-2 order entered in the minutes of its proceedings, a specified time 33-3 for its regular meetings. 33-4 Sec. 251.009. DIRECTOR FEES. A director is entitled to 33-5 receive a fee not to exceed $10 per day for each day of service 33-6 necessary to discharge the director's duties, provided that the 33-7 service is authorized by vote of the board. Directors shall file 33-8 with the secretary of the board a verified statement showing the 33-9 actual number of days of service each month on the last day of the 33-10 month or as soon after that date as possible and before a warrant 33-11 shall be issued for the service. 33-12 Sec. 251.010. RECORDS; AUTHORITY OFFICE. The authority 33-13 shall keep a true and full account of all board meetings and 33-14 proceedings, and records of the board must be maintained in a 33-15 secure manner. The records are the property of the authority and 33-16 are subject to public inspection. A regular office shall be 33-17 established and maintained for conduct of authority business within 33-18 the authority. 33-19 Sec. 251.011. ACCOUNT RECORDS; AUDIT. (a) The authority 33-20 shall keep a complete book of accounts, and the account books and 33-21 records of the authority and of the depository of the authority 33-22 shall be audited by a certified public accountant annually as soon 33-23 as practicable after the end of the year. 33-24 (b) The audit report covering the preceding calendar year 33-25 shall be submitted at the first regular meeting of the board after 33-26 the end of the year. A copy of the report shall be filed in the 34-1 office of the authority, with the depository of the authority, in 34-2 the office of the auditor, and with the commission, and all such 34-3 copies shall be open to public inspection. 34-4 Sec. 251.012. MANAGING DIRECTOR AND EMPLOYEES. The board 34-5 may employ a managing director for the authority and may delegate 34-6 to the managing director full authority to manage and operate the 34-7 affairs of the authority subject only to orders of the board. 34-8 Compensation for the managing director and employees shall be set 34-9 by the board. Employees of the authority may be removed by the 34-10 board. 34-11 Sec. 251.013. SURETY BONDS. All bonds required to be given 34-12 by directors, officers, and employees of the authority shall be 34-13 executed by a surety company authorized to do business in this 34-14 state. The authority may pay the premiums on the bonds required by 34-15 this section. 34-16 Sec. 251.014. CONFLICT OF INTEREST; PENALTY. A director, 34-17 engineer, or employee of the authority may not be interested, 34-18 directly or indirectly, either for themselves or as agents for 34-19 anyone else, in any contract for the purchase or construction of 34-20 any work by the authority. If a director, engineer, or employee 34-21 becomes interested, directly or indirectly, in such a contract, the 34-22 person shall be guilty of a misdemeanor and on conviction shall be 34-23 punished by a fine not to exceed $1,000, by confinement in the 34-24 county jail for not less than six months or more than one year, or 34-25 by both fine and imprisonment. 34-26 Sec. 251.015. POWER AND DUTIES. (a) The authority may 35-1 control and employ the waters of the Neches River and its 35-2 tributaries, including the storm waters and floodwaters of the 35-3 rivers and their tributaries, for the conservation and beneficial 35-4 use of the waters in the manner and for the particular purposes 35-5 provided in this section. 35-6 (b) The authority may provide through practical and legal 35-7 means for the control and coordination of the regulation of the 35-8 waters of the Neches River and its tributaries. 35-9 (c) The authority may provide by adequate organization and 35-10 administration for the preservation of the equitable rights of the 35-11 people of the different sections of the watershed area, in the 35-12 beneficial use of the waters of the Neches River and its 35-13 tributaries. 35-14 (d) The authority may provide for storing, controlling, and 35-15 conserving the waters of the Neches River and its tributaries 35-16 within or outside the authority in order to prevent the escape of 35-17 any of the waters without the maximum of public service, prevent 35-18 the devastation of lands from recurrent overflows, and protect life 35-19 and property in the authority from uncontrolled floodwaters. 35-20 (e) The authority may provide for the conservation of the 35-21 waters of the Neches River and its tributaries essential for the 35-22 domestic uses of the people of the authority, including all 35-23 necessary water supplies for cities and towns. 35-24 (f) The authority may provide for the irrigation of all 35-25 lands in the authority, or lands outside the authority but within 35-26 the watershed area, where irrigation is required for agricultural 36-1 purposes, or where irrigation may be considered helpful to more 36-2 profitable agricultural production, and for the equitable 36-3 distribution of the waters to the regional potential requirements 36-4 for all uses, domestic, manufacturing, and irrigation. All plans 36-5 and all works provided by the authority, and all works which may be 36-6 provided under the control of the authority, shall give primary 36-7 consideration to the necessary and potential needs for water by or 36-8 within the area in the authority constituting the watershed of the 36-9 Neches River and its tributaries. 36-10 (g) The authority may provide for the encouragement and 36-11 development of drainage systems and provisions for drainage of 36-12 lands in the valleys of the Neches River and its tributaries 36-13 needing drainage for profitable agricultural production and for 36-14 drainage of other lands in the watershed area of the authority 36-15 requiring drainage for the most advantageous use. 36-16 (h) The authority may provide for the encouragement of the 36-17 conservation of all soils against destructive erosion to prevent 36-18 the increased risk of flood caused by such erosion. 36-19 (i) The authority may control and make available for 36-20 employment waters of the Neches River and its tributaries in the 36-21 development of commercial and industrial enterprises in all 36-22 sections of the watershed area of the authority. 36-23 (j) The authority may provide for the control, storing, and 36-24 employment of waters of the Neches River and its tributaries in the 36-25 development and distribution of hydroelectric power, where such use 36-26 may be economically coordinated with other and superior uses and 37-1 subordinated to the uses declared by law to be superior, and may 37-2 provide for all other purposes for which floodwaters and storm 37-3 waters when controlled and conserved may be used in the performance 37-4 of a useful service as contemplated and authorized by provisions of 37-5 the constitution and the public policy declared by such powers. 37-6 (k) The authority may purchase or construct all works 37-7 necessary or convenient for the exercise of the powers and to 37-8 accomplish the purposes specified in this chapter and to purchase 37-9 or otherwise acquire all lands or other property necessary or 37-10 convenient for carrying out those purposes. 37-11 Sec. 251.016. EMINENT DOMAIN. The right of eminent domain 37-12 is expressly conferred on the authority to enable it to acquire the 37-13 fee simple title to, or easement or right-of-way over and through, 37-14 lands, water, or lands under water, private or public, within and 37-15 outside the authority, necessary or convenient to carry out any of 37-16 the purposes and powers conferred on the authority by this chapter. 37-17 All condemnation proceedings shall be under the direction of the 37-18 board and in the name of the authority, and the assessment of 37-19 damages and all procedures with reference to condemnation, appeal, 37-20 and payment shall be in conformity with Chapter 21, Property Code. 37-21 Sec. 251.017. FEES AND CHARGES. (a) The board shall 37-22 prescribe fees and charges to be collected for the use of water, 37-23 water connections, or other service. The fees and charges shall be 37-24 reasonable and equitable and fully sufficient to produce revenues 37-25 adequate to pay: 37-26 (1) all expenses necessary for the operation and 38-1 maintenance of the improvements and facilities of the authority, 38-2 including the cost of the acquisition of properties and materials 38-3 necessary to maintain the improvements and facilities in good 38-4 condition and to operate them efficiently, necessary wages and 38-5 salaries of the authority, and other expenses reasonably necessary 38-6 for the efficient operation of the improvements and facilities; 38-7 (2) the annual or semiannual interest on any 38-8 obligation issued under this chapter payable out of the revenues of 38-9 the improvements and facilities; and 38-10 (3) the amount required to be paid annually into the 38-11 sinking fund for the payment of any obligations issued under this 38-12 chapter payable out of the revenues of the improvements and 38-13 facilities. 38-14 (b) No other charge shall be made on the revenues derived 38-15 from the improvements and facilities while any obligations issued 38-16 under this chapter remain outstanding and unpaid as to principal or 38-17 interest; provided, however, that out of revenues that may be 38-18 received in excess of those required for the purposes listed in 38-19 Subsections (a)(1), (2), and (3), the board may pay the cost of 38-20 improvements and replacements not covered by Subsection (a)(1) and 38-21 may establish a reasonable depreciation and emergency fund. 38-22 (c) The fees and charges of the authority may not be in 38-23 excess of what is reasonably necessary to fulfill the obligations 38-24 imposed on the authority by this chapter. 38-25 Sec. 251.018. EMPLOYEES AND COMPENSATION. The authority, 38-26 through its board, may employ managers, engineers, attorneys, and 39-1 all necessary employees to properly construct, operate, and 39-2 maintain the works of the authority and carry out the provisions of 39-3 this chapter and may pay reasonable compensation set by the board 39-4 for such services. 39-5 Sec. 251.019. CONTRACTS. (a) The authority may make and 39-6 enter into contracts, leases, and agreements necessary or 39-7 convenient to carry out the powers granted in this chapter. 39-8 Contracts, leases, and agreements may be entered into with any 39-9 person, real or artificial, any corporation, municipal, public, or 39-10 private, or any government or governmental agency, including the 39-11 United States government and the state. 39-12 (b) The authority may convey or cause to be conveyed any of 39-13 its properties, rights, lands, tenements, easements, improvements, 39-14 reservoirs, dams, canals, plants, laterals, works, and facilities 39-15 to the United States government or any of its agencies and may 39-16 enter into a lease with the United States government or any of its 39-17 agencies relative to such property or right. The authority may 39-18 obligate itself to pay rent out of the income and revenues of the 39-19 property or right subject to the lease, with or without the 39-20 privilege of purchase; provided, however, that nothing in this 39-21 section authorizes the assumption by the authority of any 39-22 obligation requiring payment out of taxes. 39-23 (c) Contracts, leases, and agreements authorized by this 39-24 section shall be approved by resolution of the board and shall be 39-25 executed by the president and attested by the secretary. 39-26 Sec. 251.020. RIGHT TO SUE. The authority may sue and be 40-1 sued. 40-2 Sec. 251.021. APPROVAL OF CERTAIN WORKS. Before the 40-3 authority establishes a diversion point or constructs the canals, 40-4 pumping plants, and other works provided for in this chapter, the 40-5 authority must present plans and specifications to the commission 40-6 for approval. 40-7 Sec. 251.022. COMMISSION SUPERVISION. The authority is 40-8 subject to the continuing rights of supervision by the commission 40-9 in the exercise of the powers and duties provided by this chapter. 40-10 The commission may approve or refuse to approve the adequacy of any 40-11 plan or plans for flood control or conservation improvement 40-12 purposes devised by the authority for the achievement of the plans 40-13 and purposes intended in the creation of the authority that 40-14 contemplate improvements supervised by the commission under the 40-15 provisions of general law. 40-16 Sec. 251.023. ADDITIONAL POWERS. (a) The authority has and 40-17 may exercise the functions, powers, authority, rights, and duties 40-18 necessary to accomplish the purposes for which the authority is 40-19 created, including investigating and planning, acquiring, 40-20 constructing, maintaining, and operating all necessary properties, 40-21 lands, rights, tenements, easements, improvements, reservoirs, 40-22 dams, canals, laterals, plants, works, and facilities, including 40-23 the acquisition within or outside the authority of lands, 40-24 rights-of-way, water rights, and all other properties, tenements, 40-25 and easements, and other rights incident to, helpful to, or in aid 40-26 of carrying out the purposes of the authority as provided by this 41-1 chapter. 41-2 (b) This chapter shall be liberally construed to effectuate 41-3 each and all of the purposes provided by this chapter. 41-4 Sec. 251.024. GRANTS AND LOANS. The authority may receive 41-5 grants and borrow money from a department or agency of the United 41-6 States or from any other source and in evidence of such debt 41-7 undertaken may issue the notes, warrants, certificates of 41-8 indebtedness, or other form of obligations of the authority, 41-9 payable solely out of the revenues to be derived from the 41-10 improvements and facilities and the operations and devices of the 41-11 improvements and facilities. 41-12 Sec. 251.025. ISSUANCE OF OBLIGATIONS. (a) Each issue of 41-13 obligations authorized under this chapter constitutes a separate 41-14 series and shall be appropriately designated. The obligations 41-15 shall not constitute an indebtedness or a pledge of the credit of 41-16 the authority and shall never be paid, in whole or in part, out of 41-17 any funds raised, or to be raised, by taxation and must contain a 41-18 recital to that effect. Obligations issued under this chapter 41-19 shall be in registered or coupon form and if in coupon form may be 41-20 registrable as to principal only or as to both principal and 41-21 interest. 41-22 (b) The obligations shall bear interest at a rate not to 41-23 exceed six percent per year, payable annually or semiannually, and 41-24 must be in denominations and must mature serially, or at one time, 41-25 not more than 50 years from their date in the manner provided by 41-26 the board. 42-1 (c) The principal of and interest on the obligations shall 42-2 be made payable within or outside the state at the discretion of 42-3 the board. The obligations may be made redeemable at the option of 42-4 the board prior to maturity at premiums the board determines. 42-5 (d) The obligations shall be signed by the president and 42-6 secretary of the board. The interest coupons attached to the 42-7 obligations may be executed with facsimile signatures of the 42-8 officers. 42-9 (e) The obligations shall be sold in the manner and at the 42-10 time the board determines to be expedient and necessary to the 42-11 interest of the authority, provided that in no event shall 42-12 obligations be sold for a price that will result in an interest 42-13 yield of more than six percent, computed to maturity according to 42-14 standard bond tables in general use by banks and insurance 42-15 companies. 42-16 (f) If an officer whose signature is on the obligations or 42-17 coupons ceases to be an officer before the delivery of the 42-18 obligations to the purchaser, the signature nevertheless shall be 42-19 valid and sufficient for all purposes. 42-20 (g) Obligations issued under the provisions of this chapter 42-21 are negotiable instruments under the laws of this state. 42-22 Sec. 251.026. REVENUE OBLIGATIONS. (a) Obligations issued 42-23 under this chapter may be payable from, and secured by the pledge 42-24 of, all the revenues derived from the operation of the improvements 42-25 and facilities of the authority, exclusive of any revenues derived 42-26 from taxation of assessments; may be payable from, and secured by 43-1 the pledge of, only such revenues as may be derived from the 43-2 operation of the improvements and facilities acquired with the 43-3 proceeds of the sale of such obligations; or may be payable from, 43-4 and secured by the pledge of, a specific part of the revenues 43-5 derived from the operation of the improvements and facilities of 43-6 the authority, all as may be provided in the proceedings 43-7 authorizing the issuance of such obligations. 43-8 (b) If more than one series of obligations is issued under 43-9 the provisions of this chapter payable from and secured by 43-10 identical revenues, priority of lien against the revenues shall 43-11 depend on the time of delivery of the obligations, each series 43-12 enjoying a lien against the revenues prior and superior to that 43-13 enjoyed by any other series of obligations subsequently delivered; 43-14 provided, however, that as to any issue or series of obligations 43-15 that may be authorized as a unit but delivered from time to time in 43-16 blocks, the board may, in proceedings authorizing the issuance of 43-17 the obligations, provide that all the obligations of the series or 43-18 issue shall be coequal as to lien, regardless of the time of 43-19 delivery. 43-20 Sec. 251.027. SINKING FUND. (a) A resolution or order 43-21 authorizing the issuance of obligations under this chapter shall 43-22 provide for the creation of a sinking fund. Revenues pledged to 43-23 the payment of obligations shall be paid into the sinking fund from 43-24 month to month as the revenues are collected in amounts fully 43-25 sufficient to pay principal of and interest on the obligations. 43-26 The money in the sinking fund shall be applied solely to the 44-1 payment of interest on the obligations for whose payment the fund 44-2 is created, and for the retirement of the obligations, at or prior 44-3 to maturity, in the manner provided by this section. 44-4 (b) The board may at the time obligations are authorized 44-5 provide that all money in the sinking fund in excess of the amount 44-6 required for the payment of the interest on and principal of the 44-7 outstanding obligations, for the period the board may determine, 44-8 shall be expended once each year pursuant to board order in the 44-9 purchase of obligations for whose account the sinking fund has been 44-10 accumulated, if any obligations can be purchased at a price that 44-11 seems reasonable to the board, and may provide that if the 44-12 obligations contain an option permitting retirement before 44-13 maturity, such excess amounts shall be paid out as provided for the 44-14 purchase of the obligations. If the board is unable to purchase 44-15 sufficient obligations of the issue to absorb all the surplus, the 44-16 board shall call for redemption of a sufficient amount of the 44-17 obligations to absorb, so far as practicable, the entire surplus 44-18 remaining in the sinking fund. 44-19 (c) The resolution or order may provide that any excess in 44-20 the sinking fund that cannot be applied to the purchase or 44-21 redemption of obligations shall remain in the sinking fund to be 44-22 used for payment of principal or interest when due or for the 44-23 subsequent call of obligations for purchase or redemption in the 44-24 manner provided by this section. 44-25 Sec. 251.028. COVENANTS WITH HOLDERS. A resolution or order 44-26 authorizing the issuance of obligations under this chapter may 45-1 contain covenants with the holders of the obligations as to the 45-2 management and operation of the improvements and facilities, 45-3 collection of fees and charges for the use of the improvements and 45-4 facilities, disposition of the fees and charges, issuance of future 45-5 obligations and creation of future liens, mortgages and 45-6 encumbrances against the improvements and facilities, and the 45-7 revenues of the improvements and facilities, and other pertinent 45-8 matters, that are considered necessary to insure the marketability 45-9 of the obligations, provided that the covenants are not 45-10 inconsistent with the provisions of this chapter. 45-11 Sec. 251.029. DEDICATION OF REVENUES. (a) A resolution or 45-12 order authorizing the issuance of obligations under this chapter 45-13 shall provide that the revenues from which the obligations are to 45-14 be paid and that are pledged to the payment of the obligations 45-15 shall from month to month, as the obligations accrue and are 45-16 received, be set apart and placed in the sinking fund and disbursed 45-17 in the manner provided by this chapter. 45-18 (b) The board, in setting and determining the amount of 45-19 revenues to be set aside as provided in Subsection (a), shall 45-20 provide that the amount to be set aside and paid into the sinking 45-21 fund in any year or years shall be not less than a set amount that 45-22 is at least sufficient to provide for the payment of the interest 45-23 on and principal of all obligations maturing and becoming payable 45-24 in each such year, together with a surplus or margin of 10 percent 45-25 in excess of such amount. 45-26 Sec. 251.030. ACTIONS BY HOLDERS; ADMINISTRATOR OR RECEIVER. 46-1 (a) A holder of obligations issued under this chapter, or of 46-2 coupons originally attached to the obligations, may either at law 46-3 or in equity, by suit, action, mandamus, or other proceeding, 46-4 enforce and compel performance of all duties required by this 46-5 chapter to be performed by the board, including the making and 46-6 collecting of reasonable and sufficient fees or charges for the use 46-7 of the improvements and facilities of the authority, the 46-8 segregation of the income and revenues of the improvements and 46-9 facilities, and the application of the income and revenues under 46-10 the provisions of this chapter. 46-11 (b) In the event of a default in the payment of the 46-12 principal of or interest on any of the obligations of the 46-13 authority, a holder of the obligation shall be entitled to have an 46-14 administrator or a receiver appointed by a court having 46-15 jurisdiction to administer and operate the improvements and 46-16 facilities whose revenues are pledged to the payment of the 46-17 obligations on behalf of the authority and the holders of the 46-18 obligations. The administrator or receiver may be authorized to 46-19 fix and collect fees and charges sufficient to provide for the 46-20 payment of operation and maintenance expenses as defined by this 46-21 chapter, to pay any outstanding obligations or interest coupons 46-22 payable from the revenues of the improvements and facilities, and 46-23 to apply the income and revenues of the improvements and facilities 46-24 in conformity with the provisions of this chapter and the 46-25 proceedings authorizing the issuance of the obligations. 46-26 Sec. 251.031. TRUST INDENTURE. (a) As additional security 47-1 for the payment of obligations issued under this chapter, the board 47-2 may, at its discretion, have executed in favor of the holders of 47-3 the obligations an indenture mortgaging and encumbering the 47-4 improvements, facilities, and properties acquired with the proceeds 47-5 of the sale of the obligations, or all the improvements, 47-6 facilities, and properties of the authority, and may provide in the 47-7 encumbrance for a grant to a purchaser at foreclosure sale under 47-8 the encumbrance of a franchise to operate the improvements, 47-9 facilities, and properties, for a term of not over 50 years from 47-10 the date of the purchase, subject to all applicable laws. 47-11 (b) An indenture under this section may contain terms and 47-12 provisions the board deems proper and shall be enforceable in the 47-13 manner provided by the laws of Texas for the enforcement of other 47-14 mortgages and encumbrances. 47-15 (c) Under a sale ordered under the provisions of the 47-16 mortgage or encumbrance, the purchaser at the sale, and the 47-17 purchaser's successors or assigns, shall be vested with a permit 47-18 and franchise to maintain and operate the improvements, facilities, 47-19 and properties purchased at the sale, with the powers and 47-20 privileges used by the authority in the operation of the 47-21 improvements, facilities, and properties. 47-22 (d) The purchaser of the improvements, facilities, and 47-23 properties at a sale, and the purchaser's successors and assigns, 47-24 may operate the improvements, facilities, and properties as 47-25 provided in Subsection (c) or may at their option remove all or 47-26 part of the improvements, facilities, and properties for diversion 48-1 to other purposes. 48-2 (e) Any statutory provisions pertaining to the granting of 48-3 franchises do not apply to the authorization or execution of any 48-4 mortgage or encumbrance entered into under the provisions of this 48-5 chapter or to the granting of any franchise under this chapter. 48-6 Sec. 251.032. SALE PROCEEDS. (a) The proceeds of the sale 48-7 of any obligations issued under this chapter may be deposited in 48-8 the bank or banks agreed on by the purchaser and the board. The 48-9 proceeds may be deposited and paid out pursuant to the terms and 48-10 conditions agreed on, provided that the general law pertaining to 48-11 the deposit of the authority funds in the depository of the 48-12 authority is not applicable to the deposit of the proceeds of the 48-13 sale. 48-14 (b) Any part of the proceeds of the sale of obligations 48-15 issued under this chapter that remains unexpended after the project 48-16 for which the obligations were authorized has been completed may be 48-17 paid into the sinking fund for the payment of the obligations and 48-18 may be used only for the payment of principal of the obligations or 48-19 for the purposes of acquiring such outstanding obligations by 48-20 purchase in the manner provided by this chapter. 48-21 Sec. 251.033. INSURANCE FOR IMPROVEMENTS AND FACILITIES. 48-22 The board may enter into an agreement with a purchaser of 48-23 obligations issued by the authority to keep all the improvements 48-24 and facilities whose revenues are pledged to the payment of the 48-25 obligations insured with insurers of good standing against loss or 48-26 damage by fire, water, or flood and from any other hazards 49-1 customarily insured against by private companies operating similar 49-2 properties. The authority may also agree to carry with insurers of 49-3 good standing insurance covering the use and occupancy of such 49-4 property that is customarily carried by private companies. The 49-5 cost of insurance shall be budgeted as maintenance and operation 49-6 expense, and the insurance shall be carried for the benefit of the 49-7 holders of the obligations. 49-8 Sec. 251.034. EXEMPTION FROM TAXATION. Obligations issued 49-9 under the provisions of this chapter are exempt from taxation by 49-10 the state or by any municipal corporation, county, or other 49-11 political subdivision or taxing district of the state. 49-12 Sec. 251.035. REFUNDING OBLIGATIONS. After issuing 49-13 obligations under this chapter, the authority may authorize and 49-14 issue its refunding obligations on terms the board deems advisable 49-15 for the purpose of providing for the retirement of any outstanding 49-16 obligations, either due or to become due. The refunding 49-17 obligations may be either exchanged for like par amounts of the 49-18 outstanding obligations or may be sold and the proceeds of the sale 49-19 so applied. Refunding obligations authorized and issued under this 49-20 section are subject to the provisions of this chapter pertaining to 49-21 the issuance of other obligations and shall be secured in all 49-22 respects to the same extent and be payable from the same revenues 49-23 as the obligations being refunded. 49-24 Sec. 251.036. APPROVAL AND REGISTRATION OF OBLIGATIONS. 49-25 Before any obligations are issued, the authority shall submit a 49-26 certified copy of the obligations and of the proceedings for their 50-1 issuance, together with any additional information that may be 50-2 required, to the attorney general for approval. When approved the 50-3 obligations shall be issued after registration with the comptroller 50-4 of public accounts. 50-5 Sec. 251.037. CHAPTER AS FULL AUTHORITY. This chapter, 50-6 without reference to other statutory provisions, constitutes full 50-7 authority for the authorization and issuance of obligations under 50-8 this chapter and for the accomplishment of all purposes authorized 50-9 under this chapter. No proceedings relating to the authorization 50-10 or issuance of obligations shall be necessary except as required by 50-11 this chapter, and no other provisions of the laws of the state 50-12 pertaining to the authorization or issuance of obligations, the 50-13 operation and maintenance of improvements and facilities, the 50-14 granting of franchises or permits, or the right to elections or 50-15 referendum petitions, or in any way impeding or restricting the 50-16 carrying out of the acts authorized by this chapter, shall be 50-17 construed as applying to any proceedings or acts under this 50-18 chapter. 50-19 Sec. 251.038. EXISTING WATER RIGHTS. Nothing in this 50-20 chapter shall be construed as affecting any rights existing at the 50-21 time of the formation of the authority, or priorities in the 50-22 rights, to water from the source of supply, and neither the 50-23 formation of the authority or a contract for the purchase of water 50-24 with the authority shall ever be held to be an abandonment or 50-25 waiver of those rights or priorities, or an abandonment of the 50-26 original point of diversion from the source of supply, but all such 51-1 rights existing at the time of the formation of the authority shall 51-2 be preserved. 51-3 Sec. 251.039. USE OF WORKERS ON RELIEF ROLLS. (a) The 51-4 authority, or the contractor who employs the labor for the 51-5 construction of any improvements for the authority, shall be 51-6 required to give preference to persons who are on relief rolls, or 51-7 otherwise unemployed, including those required for office or 51-8 clerical work, but excepting the key workers of the authority or 51-9 the contractor, provided that the persons on relief or unemployed 51-10 are capable of efficiently rendering the proper service in the 51-11 various classifications of labor under which they are employed. 51-12 (b) If a sufficient number of persons with the proper 51-13 qualifications required by Subsection (a) are not available for 51-14 employment, the authority or the contractor shall give preference 51-15 to employment of qualified workers who reside in the locality where 51-16 the improvements are to be constructed. 51-17 (c) Every contract entered into by the authority under this 51-18 chapter shall require the contractor to give preference in 51-19 employment to needy persons on relief rolls or otherwise as 51-20 provided in this section and shall require the contractor to comply 51-21 with this section. 51-22 (d) Nothing in this section shall be construed to conflict 51-23 with the requirements of a federal agency providing funds for the 51-24 authority. 51-25 CHAPTER 252. BRAZOS RIVER AUTHORITY 51-26 Sec. 252.001. CREATION. (a) A conservation and reclamation 52-1 district to be known as the "Brazos River Authority" is created. 52-2 The authority is a river authority, a governmental agency, a 52-3 municipality, and a body politic and corporate. 52-4 (b) The authority is created under and is essential to 52-5 accomplish the purposes of Section 59, Article XVI, Texas 52-6 Constitution. 52-7 (c) The authority may exercise the powers expressly granted 52-8 by Section 59, Article XVI, Texas Constitution, to districts 52-9 created to conserve, control, and utilize to beneficial service the 52-10 storm waters and floodwaters of the rivers and streams of the 52-11 state, as well as such powers as may be contemplated and implied by 52-12 the purposes of that provision of the constitution and as may be 52-13 conferred by general law and the provisions of this chapter. 52-14 (d) The authority may exercise all the rights and powers of 52-15 an independent governmental agency, a municipality, and a body 52-16 politic and corporate to formulate plans deemed essential to its 52-17 operation and for its administration in the control, storing, 52-18 preservation, and distribution to all useful purposes of the storm 52-19 waters and floodwaters of the Brazos River and its tributary 52-20 streams. 52-21 (e) The authority may exercise such authority and power of 52-22 control and regulation over the storm waters and floodwaters of the 52-23 Brazos River and its tributaries as may be exercised by the state, 52-24 subject to the provisions of the constitution and the acts of the 52-25 legislature. 52-26 Sec. 252.002. DEFINITIONS. In this chapter: 53-1 (1) "Authority" means the Brazos River Authority. 53-2 (2) "Board" means the board of directors of the 53-3 authority. 53-4 (3) "Director" means a member of the board. 53-5 Sec. 252.003. TERRITORY. The territory of the authority 53-6 comprises the watershed of the Brazos River, as determined by rule 53-7 of the Texas Water Development Board, except the portions lying 53-8 within Freestone, Leon, and Madison counties. 53-9 Sec. 252.004. POWERS. (a) The authority may exercise, in 53-10 addition to all the general powers vested by the constitution and 53-11 statutes in a governmental agency and body politic and corporate 53-12 for the greatest practicable measure of conservation and beneficial 53-13 utilization of storm waters, floodwaters, and unappropriated flow 53-14 waters, the powers of control and employment of the floodwaters, 53-15 storm waters, and unappropriated flow waters of the authority in 53-16 the manner and for the purposes provided by this section. 53-17 (b) The authority may provide, through all practical and 53-18 legal means, for the control and the coordination of the regulation 53-19 of the waters of the watershed of the Brazos River and its 53-20 tributary streams as a unit. 53-21 (c) The authority may provide, by adequate organization and 53-22 administration, for the preservation of the equitable rights of the 53-23 people of the different sections of the watershed area in the 53-24 beneficial use of storm waters, floodwaters, and unappropriated 53-25 flow waters of the Brazos River and its tributary streams. 53-26 (d) The authority may provide for storing, controlling, and 54-1 conserving storm waters, floodwaters, and unappropriated flow 54-2 waters of the Brazos River and its tributaries, preventing the 54-3 escape of any of such waters without the maximum of public service, 54-4 preventing the devastation of lands by recurrent overflows, and 54-5 protecting life and property in the watershed area from 54-6 uncontrolled floodwaters. 54-7 (e) The authority may provide for the conservation of waters 54-8 essential for the domestic uses of the people of the watershed of 54-9 the Brazos River and its tributaries, including all necessary water 54-10 supplies for cities and towns. 54-11 (f) The authority may provide for the irrigation of lands in 54-12 the watershed of the Brazos River and its tributary streams where 54-13 irrigation is required for agricultural purposes, or may be 54-14 considered helpful to more profitable agricultural production, and 54-15 provide for the equitable distribution of storm waters, 54-16 floodwaters, and unappropriated flow waters to the regional 54-17 potential requirements for all uses. Plans and works provided by 54-18 the authority, and works provided under the authorization of the 54-19 authority, should give primary consideration to the necessary and 54-20 potential needs for water by or within the areas constituting the 54-21 watershed of the Brazos River and its tributary streams. 54-22 (g) The authority may provide for the better encouragement 54-23 and development of drainage systems and provisions for drainage of 54-24 lands in the valleys of the Brazos River and its tributary streams 54-25 needing drainage for profitable agricultural production and 54-26 drainage for other lands in the watershed area of the authority 55-1 requiring drainage for the most advantageous use. 55-2 (h) The authority may provide for the conservation of all 55-3 soils against destructive erosion and to prevent an increased flood 55-4 danger caused by destructive soil erosion. 55-5 (i) The authority may provide for controlling and making 55-6 available for employment floodwaters, storm waters, and 55-7 unappropriated flow waters in the development of commercial and 55-8 industrial enterprises in all sections of the watershed area of the 55-9 authority. 55-10 (j) The authority may provide for the control, storage, and 55-11 employment of floodwaters, storm waters, and unappropriated flow 55-12 waters in the development and distribution of hydroelectric power, 55-13 where this use may be economically coordinated with other and 55-14 superior uses and subordinated to the uses declared by law to be 55-15 superior. 55-16 (k) The authority may provide for each purpose for which 55-17 floodwaters, storm waters, and unappropriated flow waters, when 55-18 controlled and conserved, may be used in the performance of a 55-19 useful service as contemplated and authorized by the provisions of 55-20 the constitution and the public policy it declares. 55-21 (l) The authority may provide for discovery, development, 55-22 production, use, and distribution of groundwater in the Brazos 55-23 River Basin and environs. 55-24 Sec. 252.005. LIMITATION OF AUTHORITY; STATE SUPERVISION. 55-25 The powers and duties granted to the authority by this chapter are 55-26 subject to all legislative declarations of public policy in the 56-1 maximum utilization of the storm waters, floodwaters, and 56-2 unappropriated flow waters of the Brazos River watershed for the 56-3 purposes for which the authority is created, as expressed and 56-4 indicated in this chapter, and subject to the continuing rights of 56-5 supervision by the state. 56-6 Sec. 252.006. DAMS AND RESERVOIRS; WATER SUPPLY CONTRACTS. 56-7 (a) The authority may construct, acquire, equip, acquire storage 56-8 rights at, and operate dams and reservoirs that in the opinion of 56-9 the board are useful in carrying out the powers conferred on the 56-10 authority by this chapter, whether any such dam is designed to 56-11 serve a single purpose or multiple purposes. 56-12 (b) The authority may provide water supply lines and water 56-13 purification and pumping facilities. 56-14 (c) The authority may execute contracts with municipalities 56-15 in the state substantially in the manner prescribed by Section 56-16 402.020, Local Government Code, for districts organized or created 56-17 pursuant to Section 59, Article XVI, Texas Constitution, and may 56-18 execute water supply contracts with other users of water. 56-19 Sec. 252.007. PRIORITY OF RIGHTS. Nothing in this chapter 56-20 changes any existing priority of right under the laws of the state 56-21 to the use of waters, including any rights of municipalities that 56-22 maintain and use storage structures in the bed of the Brazos River 56-23 or its tributaries. 56-24 Sec. 252.008. BOND PROVISIONS. (a) Bonds may be: 56-25 (1) sold for cash, at public or private sale, at such 56-26 price or prices as the board determines; 57-1 (2) issued on such terms as the board determines in 57-2 exchange for property of any kind, real, personal, or mixed, or any 57-3 interest in property, that the board determines necessary or 57-4 convenient for any corporate purpose; or 57-5 (3) issued to refund bonds issued at any time under 57-6 authority of this chapter. 57-7 (b) Bonds must be authorized by resolution of the board. 57-8 (c) A resolution authorizing bonds may contain provisions, 57-9 which shall be part of the contract between the authority and the 57-10 purchasers and subsequent holders of the bonds: 57-11 (1) reserving the right to redeem the bonds at the 57-12 time or times, in the amounts, and at the prices as may be 57-13 provided; 57-14 (2) providing for the setting aside of sinking funds 57-15 or reserve funds and the regulation and disposition of those funds; 57-16 (3) pledging, to secure the payment of the principal 57-17 of and interest on the bonds and the sinking fund or reserve fund 57-18 payments agreed to be made with respect to the bonds, all or any 57-19 part of the gross or net revenues subsequently received by the 57-20 authority with respect to the property, real, personal, or mixed, 57-21 to be acquired or constructed with the bonds or with proceeds of 57-22 the bonds, or all or any part of the gross or net revenues 57-23 subsequently received by the authority from any source; 57-24 (4) prescribing the purposes to which the bonds or any 57-25 bonds later issued, or the proceeds of the bonds, may be applied; 57-26 (5) agreeing to set and collect rates and charges 58-1 sufficient to produce revenues that are adequate to pay the items 58-2 specified in any resolution or resolutions authorizing any bonds, 58-3 and prescribing the use and disposition of all revenues; 58-4 (6) prescribing limitations on the issuance of 58-5 additional bonds and on all agreements that may be made with the 58-6 purchasers and successive holders of the bonds; 58-7 (7) relating to the construction, extension, 58-8 improvement, operation, maintenance, depreciation, replacement, and 58-9 repair of the properties of the authority and the carrying of 58-10 insurance on all or any part of the property covering loss or 58-11 damage or loss of use and occupancy resulting from specified risks; 58-12 (8) fixing the procedure, if any, by which, if the 58-13 authority so desires, the terms of any contract with the holders of 58-14 bonds may be amended or abrogated, the amount of bonds the holders 58-15 of which must consent to such amendment or abrogation, and the 58-16 manner in which the consent shall be evidenced; 58-17 (9) providing for the execution and delivery by the 58-18 authority to a bank or trust company authorized by law to accept 58-19 trusts, or to the United States or any office or agency of the 58-20 United States, of indentures or agreements authorized to be made 58-21 with or for the benefit of the holders of the bonds and such other 58-22 provisions as may be contained in the indentures or agreements; and 58-23 (10) making such other provisions, not inconsistent 58-24 with provisions of this chapter, as the board may approve. 58-25 (d) Before any bonds may be sold by the authority, a 58-26 certified copy of the proceedings for the issuance of the bonds, 59-1 including the term of the bonds, together with any other 59-2 information that the attorney general may require, shall be 59-3 submitted to the attorney general, and if the attorney general 59-4 finds that the bonds have been issued in accordance with law, the 59-5 attorney general shall approve the bonds and shall execute a 59-6 certificate to that effect which shall be filed in the office of 59-7 the comptroller and be recorded in a record kept for that purpose. 59-8 The comptroller shall register the bonds if the attorney general 59-9 has filed with the comptroller the certificate approving the bonds 59-10 and the proceedings for the issuance of the bonds as provided in 59-11 this section. Bonds may not be issued until the bonds have been 59-12 registered by the comptroller. 59-13 (e) Bonds approved by the attorney general, registered by 59-14 the comptroller, and issued in accordance with proceedings so 59-15 approved are valid and binding obligations of the authority and are 59-16 incontestable for any cause from and after the time of their 59-17 registration. 59-18 Sec. 252.009. BOARD OF DIRECTORS; BONDS; QUORUM; OFFICERS. 59-19 (a) The board consists of 21 members. Members of the board and 59-20 their successors serve for terms of six years and until their 59-21 successors are designated and have qualified. The terms of seven 59-22 members of the board expire on February 1 of each odd-numbered 59-23 year. 59-24 (b) The governor shall appoint seven persons each biennium 59-25 with the advice and consent of the senate to serve on the board. 59-26 Within 60 days after appointment, each director shall take and 60-1 subscribe an oath of office similar to the oaths administered to 60-2 county commissioners and shall execute bond in the amount of 60-3 $5,000, payable to the authority. The premium on the bond shall be 60-4 paid by the authority. The bond, after being recorded in the 60-5 official bond records of the county in which the authority 60-6 maintains its office, shall be deposited with a depository selected 60-7 and approved for the deposit of the funds of the authority. 60-8 (c) All vacancies occurring on the board shall be filled by 60-9 appointment of the governor with the advice and consent of the 60-10 senate. 60-11 (d) Seven members of the board constitute a quorum to 60-12 transact business. 60-13 (e) The governor may not appoint more than two directors who 60-14 reside in the same county at the time of their appointment. 60-15 (f) The board shall elect from among its members a chairman, 60-16 a vice chairman, and a secretary and shall appoint a treasurer. 60-17 The treasurer shall furnish a bond in an amount equal to 75 percent 60-18 of the amount of money estimated to be on hand during the year, in 60-19 no event to be more than $100,000. 60-20 Sec. 252.010. CREATION OF MASTER DISTRICT; WATER CONTROL AND 60-21 IMPROVEMENT DISTRICT. A master district is created having all the 60-22 powers, duties, and functions, and subject to applicable and 60-23 practicable procedures for such districts, to accomplish the 60-24 purposes of this chapter, as provided by Chapter 49 and the 60-25 provisions of this code applicable to water control and improvement 60-26 districts. 61-1 Sec. 252.011. BOND ELECTION REQUIRED. The authority may not 61-2 issue bonds or incur any form of continuing obligation or 61-3 indebtedness, except indebtedness payable solely from revenues, for 61-4 purposes of effecting improvements comprehended in the plan of 61-5 organization and administration of the authority, or incur any 61-6 indebtedness in the form of a continuing charge on lands or 61-7 properties within the authority, unless such proposition has been 61-8 submitted to the qualified voters of the authority, or in 61-9 appropriate cases the qualified voters of a defined area within the 61-10 authority, and is approved by a majority of the electors voting on 61-11 the proposition. 61-12 Sec. 252.012. ADDITIONAL POWERS AND DUTIES. (a) The 61-13 authority is a district and a river authority as defined in Chapter 61-14 30. All the provisions of Chapter 30 are applicable to the 61-15 authority. 61-16 (b) As used in this section: 61-17 (1) "Person" means any individual, partnership, 61-18 corporation, public utility, or other private entity or any public 61-19 agency. 61-20 (2) "Public agency" means an authority, district, 61-21 city, town, or other political subdivision, joint board, or other 61-22 public agency created pursuant to and operating under the laws of 61-23 the state and any entity created to operate on behalf of a public 61-24 agency. 61-25 (c) The authority and all persons may enter into contracts 61-26 with each other, in any manner and on terms that the parties may 62-1 agree, with respect to any power, function, facility, or service 62-2 that the authority is authorized by law to provide or finance. 62-3 Public agencies may use and pledge any available revenues for and 62-4 in the payment of amounts due under a contract as an additional 62-5 source of payment of the contract and may covenant with respect to 62-6 available revenues to assure the availability of the revenues when 62-7 required. In this subsection, "revenues" does not mean or include 62-8 revenues from ad valorem taxes levied and collected by a public 62-9 agency or the proceeds from the sale or refunding of bonds of a 62-10 public agency that are to be wholly or partially paid from ad 62-11 valorem taxes levied and collected by the public agency unless the 62-12 use or pledge of the tax revenues or bond proceeds is approved by 62-13 the qualified voters of the public agency at an election called for 62-14 the purpose of levying taxes or issuing or refunding bonds, or 62-15 both, for the purpose of using or pledging their revenues or 62-16 proceeds under contracts entered into under this subsection. 62-17 (d) A public agency may set, charge, and collect fees, 62-18 rates, charges, rentals, and other amounts for a service or 62-19 facility provided by a utility operated by the public agency, or 62-20 provided pursuant to or in connection with a contract with the 62-21 authority, from the inhabitants of the authority or from any users 62-22 or beneficiaries of the utility, service, or facility, including: 62-23 (1) water charges; 62-24 (2) sewage charges; 62-25 (3) solid waste disposal system fees and charges, 62-26 including garbage collection or handling fees; and 63-1 (4) other fees or charges. 63-2 (e) A public agency may use and pledge the fees, rates, 63-3 charges, rentals, and other amounts authorized by Subsection (c) to 63-4 make payments to the authority required under a contract with the 63-5 authority and may covenant to do so in amounts sufficient to make 63-6 all or any part of the payments to the authority when due. If the 63-7 parties agree in the contract, the payments shall constitute an 63-8 expense of operation of any facility or utility operated by the 63-9 public agency. 63-10 (f) The authority, acting through the board, may carry out 63-11 any activities and acquire, purchase, construct, own, operate, 63-12 maintain, repair, improve, or extend and may lease or sell, on 63-13 terms and conditions, including rentals or sale prices, on which 63-14 the parties may agree, all works, improvements, facilities, plants, 63-15 buildings, structures, equipment, and appliances, and all real and 63-16 personal property, or any interest in real or personal property, 63-17 related to the works, improvements, facilities, plants, buildings, 63-18 structures, equipment, and appliances, that are incident to or 63-19 necessary in carrying out or performing any power or function of 63-20 the authority under this section. 63-21 (g) The authority may issue bonds with respect to the 63-22 acquisition, purchase, construction, maintenance, repair, 63-23 improvement, and extension of works, improvements, facilities, 63-24 plants, buildings, structures, appliances, and property for the 63-25 purpose of exercising any of its powers and functions under this 63-26 section in the manner provided by this chapter or any other 64-1 applicable law. 64-2 (h) The authority may issue revenue bonds to pay for the 64-3 costs of feasibility studies for proposed projects of the 64-4 authority, including engineering, planning and design, and 64-5 environmental studies. The authority may include in any revenue 64-6 bond issue the funds to operate and maintain, for a period not to 64-7 exceed two years after completion, the facilities acquired or 64-8 constructed through the revenue bond issue. 64-9 (i) If bonds issued by the authority recite that they are 64-10 secured by a pledge of payments under a contract, a copy of the 64-11 contract and the proceedings relating to the contract may be 64-12 submitted to the attorney general along with the bonds. If the 64-13 attorney general finds that the bonds have been authorized and the 64-14 contract has been made and entered into in accordance with law, the 64-15 attorney general shall approve the bonds and the contract, and 64-16 after the approval, the bonds and the contract are incontestable in 64-17 any court or other forum for any reason and are valid and binding 64-18 in accordance with their terms and provisions for all purposes. 64-19 (j) The provisions of Chapters 618, 1201, 1204, 1207, and 64-20 1371, Government Code, are applicable to bonds issued by the 64-21 authority. 64-22 (k) This section is wholly sufficient authority for the 64-23 issuance of bonds, the execution of contracts, and the performance 64-24 of other acts and procedures authorized by this section by the 64-25 authority and all persons, including public agencies, without 64-26 reference to any other provision of law or any restriction or 65-1 limitation contained in those provisions, except as specifically 65-2 provided in this section. To the extent of any conflict or 65-3 inconsistency between any provision of this section and any other 65-4 provision of law, including any home-rule city charter, this 65-5 section shall prevail and control. The authority and all persons, 65-6 including public agencies, may use any provision of law not in 65-7 conflict with the provisions of this section to the extent 65-8 convenient or necessary to carry out any power or authority, 65-9 expressed or implied, granted by this section. 65-10 Sec. 252.013. DISPOSITION OF PROPERTY. (a) Nothing in this 65-11 chapter shall be construed as authorizing the authority, and it 65-12 shall not be authorized, to mortgage or otherwise encumber any of 65-13 its property of any kind, real, personal, or mixed, or any interest 65-14 in property, or to acquire any property or interest subject to a 65-15 mortgage or conditional sale; provided, however, that this section 65-16 shall not be construed as preventing the pledging of the revenues 65-17 of the authority as provided by this chapter. 65-18 (b) Nothing in this chapter shall be construed as 65-19 authorizing the sale, release, or other disposition of property of 65-20 any kind, real, personal, or mixed, or any interest in property, by 65-21 the authority or through any court proceedings or otherwise; 65-22 provided, however, that the authority may sell for cash any 65-23 property or interest if the board by affirmative vote of 11 of its 65-24 members determines that the property or interest is not necessary 65-25 to the business of the authority and approves the terms of the 65-26 sale. Except by sale as expressly authorized in this section, such 66-1 property or interest may not come into the ownership or control, 66-2 directly or indirectly, of any person, firm, or corporation other 66-3 than a public authority created under the laws of the state. 66-4 (c) All property of the authority shall be at all times 66-5 exempted from forced sale, and nothing provided in this chapter 66-6 shall authorize the sale of any of the property of the authority 66-7 under any judgment rendered in any suit, and such sales are 66-8 prohibited and forbidden. 66-9 (d) Notwithstanding any restrictions or provisions in this 66-10 section or in this chapter, the authority, acting by a majority 66-11 vote of the board, may construct or purchase, from any person, 66-12 firm, or corporation (referred to in this section as "customer") 66-13 with which the authority has contracted to sell hydroelectric 66-14 power, transmission lines and other property used or to be used by 66-15 the customer for the transmission of or in connection with power 66-16 purchased or to be purchased from the authority. The authority may 66-17 lease all or any portion of such property to the customer for all 66-18 or a portion of the time during the term of the hydroelectric power 66-19 purchase contract. The lease may contain provisions, which shall 66-20 be valid and enforceable, giving the lessee the right to purchase 66-21 from the authority all or any portion of the property at or within 66-22 the time specified in the lease and for a price and on terms and 66-23 conditions specified in the lease; provided, however, that the 66-24 price shall never be less than the depreciated value, determined in 66-25 the manner prescribed in the lease, plus one percent of the 66-26 original cost of the property. 67-1 Sec. 252.014. ACQUISITION OF PROPERTY; EMINENT DOMAIN. 67-2 (a) The authority may acquire by purchase, lease, or gift or in 67-3 any other manner and may maintain, use, and operate property of any 67-4 kind, real, personal, or mixed, or any interest in property, within 67-5 or outside the boundaries of the authority, necessary or convenient 67-6 to the exercise of the powers, rights, privileges, and functions 67-7 conferred on the authority by this chapter. 67-8 (b) The authority may acquire, by purchase, condemnation, or 67-9 otherwise, such property as the board determines necessary to make 67-10 effectual and practicable the construction and operation of all 67-11 works, improvements, and services which may be planned ultimately 67-12 to be provided by the authority to accomplish any of the purposes 67-13 for which the authority was created. Such acquisition or 67-14 condemnation may be either of the fee simple title or of a lesser 67-15 title or an easement only, within the discretion of the board; 67-16 provided, however, that no person shall be deprived of any defense 67-17 available under the general law of eminent domain; and provided, 67-18 further, that the authority may not acquire or operate a steam 67-19 generating plant for the production and sale of electric energy 67-20 and, except for the purpose of acquiring the necessary area below 67-21 or above the anticipated high-water line of a reservoir, may not 67-22 condemn any property of a rural electrification cooperative or 67-23 other corporations engaged in the generation or sale of electric 67-24 energy to the public. 67-25 (c) The authority shall have the power of eminent domain for 67-26 the purpose of acquiring by condemnation property of any kind, 68-1 real, personal, or mixed, or any interest in property, within or 68-2 outside the boundaries of the authority, other than property or an 68-3 interest in property outside the boundaries of the authority owned 68-4 by any body politic, that is necessary or convenient to the 68-5 exercise of the powers, rights, privileges, and functions conferred 68-6 on the authority by this chapter, in the manner provided by general 68-7 law with respect to condemnation or, at the option of the 68-8 authority, in the manner provided by statutes relative to 68-9 condemnation by districts organized under general law pursuant to 68-10 Section 59, Article XVI, Texas Constitution. 68-11 (d) In condemnation proceedings being prosecuted by the 68-12 authority, the authority shall not be required to give bond for 68-13 appeal or bond for cost. 68-14 (e) The authority may overflow and inundate any public lands 68-15 and public property and may require the relocation of roads and 68-16 highways in the manner and to the extent permitted to districts 68-17 organized under general law pursuant to Section 59, Article XVI, 68-18 Texas Constitution. 68-19 (f) If the authority, in the exercise of the power of 68-20 eminent domain or power of relocation or any other power granted 68-21 under this chapter, makes necessary the relocation, raising, 68-22 rerouting, changing the grade, or altering the construction of any 68-23 highway, railroad, electric transmission line, or pipeline, all 68-24 necessary relocation, raising, rerouting, changing of grade, or 68-25 alteration of construction shall be accomplished at the sole 68-26 expense of the authority. 69-1 Sec. 252.015. CONTRACTS, GRANTS, AND LOANS. (a) The board 69-2 may negotiate and contract with the federal government or with any 69-3 of its agencies for grants, loans, and advancements from the United 69-4 States for the furtherance of any purpose set forth in this 69-5 chapter. 69-6 (b) The authority may receive and accept grants, loans, or 69-7 allotments from the United States and others for furtherance of any 69-8 of the purposes set forth in this chapter. 69-9 (c) An opinion from the attorney general as to whether a 69-10 grant, loan, or allotment has been received by the authority from 69-11 the United States or others shall be authority for the action of 69-12 any person charged with any duty contingent on such grant, loan, or 69-13 allotment. 69-14 Sec. 252.016. RULES AND REGULATIONS. The board may make all 69-15 necessary rules and regulations for the government and control of 69-16 the authority not inconsistent with the constitution and laws of 69-17 the state. 69-18 Sec. 252.017. USE OF BRAZOS RIVER AND TRIBUTARIES. In the 69-19 prosecution of the plans for which the authority has been created 69-20 for the storing, controlling, conserving, and distributing to 69-21 useful purposes of the storm waters, floodwaters, and 69-22 unappropriated flow waters of the Brazos River watershed, the 69-23 authority may use the bed and banks of the Brazos River and its 69-24 tributary streams for any and all purposes necessary to the 69-25 accomplishment of the plans of the authority. 69-26 Sec. 252.018. DEFAULT PROCEDURES. (a) A resolution 70-1 authorizing the issuance of bonds and any indenture or agreement 70-2 entered into pursuant to the resolution may include provisions 70-3 regarding a default on the: 70-4 (1) payment of the interest on any bonds as the 70-5 interest becomes due and payable; 70-6 (2) payment of the principal of any bonds as they 70-7 become due and payable, whether at maturity, by call for 70-8 redemption, or otherwise; or 70-9 (3) performance of an agreement made with the 70-10 purchasers or successive holders of any bonds. 70-11 (b) If a default described by Subsection (a) has occurred 70-12 and has continued for a period, if any, prescribed by the 70-13 resolution authorizing the issuance of the bonds, the trustee under 70-14 the indenture or indentures entered into with respect to the bonds 70-15 authorized by the resolution, or, if there is no indenture, a 70-16 trustee appointed in the manner provided in the resolution by the 70-17 holders of 25 percent in aggregate principal amount of the bonds 70-18 authorized by the resolution and then outstanding may, and on the 70-19 written request of the holders of 25 percent in aggregate principal 70-20 amount of the bonds authorized by the resolution and then 70-21 outstanding shall, in the trustee's own name but for the equal and 70-22 proportionate benefit of the holders of all the bonds, and with or 70-23 without having possession of the bonds: 70-24 (1) by mandamus or other suit, action, or proceeding 70-25 at law or in equity, enforce all rights of the holders of the 70-26 bonds; 71-1 (2) bring suit on the bonds or the appurtenant 71-2 coupons; 71-3 (3) by action or suit in equity, require the board to 71-4 account as if it were the trustee of an express trust for the 71-5 bondholders; 71-6 (4) by action or suit in equity, enjoin any acts or 71-7 things which may be unlawful or in violation of the rights of the 71-8 holders of the bonds; or 71-9 (5) after such notice to the board as the resolution 71-10 may provide, declare the principal of all of the bonds due and 71-11 payable, and if all defaults have been made good, then with the 71-12 written consent of the holders of 25 percent in aggregate principal 71-13 amount of the bonds then outstanding, annul the declaration and its 71-14 consequences; provided, however, that the holders of more than a 71-15 majority in principal amount of the bonds authorized by the 71-16 resolution and then outstanding shall, by written instrument 71-17 delivered to the trustee, have the right to direct and control any 71-18 and all actions taken or to be taken by the trustee under this 71-19 section. 71-20 (c) A resolution, indenture, or agreement relating to bonds 71-21 may provide that in a suit, action, or proceeding under this 71-22 section, the trustee, whether or not all of the bonds have been 71-23 declared due and payable and with or without possession of any of 71-24 the bonds, shall be entitled as of right to the appointment of a 71-25 receiver who may enter and take possession of all or part of the 71-26 properties of the authority, operate and maintain the properties, 72-1 and set, collect, and receive rates and charges that will be 72-2 sufficient to provide revenues adequate to pay the items specified 72-3 in any resolution or resolutions authorizing any bonds and the 72-4 costs and disbursements of the suit, action, or proceeding and 72-5 apply such revenue in conformity with the provisions of this 72-6 chapter and the resolution authorizing the bonds. 72-7 (d) In a suit, action, or proceeding by a trustee or 72-8 receivers, if any, under this section, counsel fees and expenses of 72-9 the trustee and of the receiver or receivers, if any, shall 72-10 constitute taxable disbursements, and all costs and disbursements 72-11 allowed by the court shall be a first charge on any revenue pledged 72-12 to secure the payment of the bonds. 72-13 (e) Subject to the provisions of the constitution, the 72-14 courts of McLennan County shall have jurisdiction of any suit, 72-15 action, or proceeding under this section by any trustee on behalf 72-16 of the bondholders and of all proceedings involved in the suit, 72-17 action, or proceeding. 72-18 (f) In addition to the powers specifically provided by this 72-19 section, the trustee shall have and possess all powers necessary or 72-20 appropriate for the exercise of any of the powers specifically 72-21 provided or incident to the general representation of the 72-22 bondholders in the enforcement of their rights. 72-23 CHAPTER 253. CANADIAN RIVER MUNICIPAL WATER AUTHORITY 72-24 Sec. 253.001. CREATION. (a) A conservation and reclamation 72-25 district to be known as the "Canadian River Municipal Water 72-26 Authority" is created. The authority is a governmental agency and 73-1 body politic and corporate. 73-2 (b) The authority is created under and is essential to 73-3 accomplish the purposes of Section 59, Article XVI, Texas 73-4 Constitution. 73-5 (c) The authority may exercise all rights, powers, 73-6 privileges, and functions as provided in this chapter and as may be 73-7 contemplated and implied by Section 59, Article XVI, Texas 73-8 Constitution, as well as those conferred by the general laws of the 73-9 state relating to water control and improvement districts except 73-10 where such laws are in conflict with the provisions of this 73-11 chapter. 73-12 Sec. 253.002. DEFINITIONS. In this chapter: 73-13 (1) "Authority" means the Canadian River Municipal 73-14 Water Authority. 73-15 (2) "Board" means the board of directors of the 73-16 authority. 73-17 (3) "Director" means a member of the board. 73-18 Sec. 253.003. TERRITORY. (a) The area of the authority 73-19 comprises all territory contained, as of May 27, 1953, within the 73-20 limits of the following cities: 73-21 (1) Amarillo, Potter and Randall counties; 73-22 (2) Borger, Hutchinson County; 73-23 (3) Brownfield, Terry County; 73-24 (4) Lamesa, Dawson County; 73-25 (5) Levelland, Hockley County; 73-26 (6) Littlefield, Lamb County; 74-1 (7) Lubbock, Lubbock County; 74-2 (8) O'Donnell, Lynn and Dawson counties; 74-3 (9) Pampa, Gray County; 74-4 (10) Plainview, Hale County; 74-5 (11) Slaton, Lubbock County; and 74-6 (12) Tahoka, Lynn County. 74-7 (b) A defect or irregularity in the boundaries of any of the 74-8 cities listed in Subsection (a) or in any of the proceedings 74-9 relating to the annexation of territory to those cities does not 74-10 affect the validity of the authority or any of its rights, powers, 74-11 privileges, or functions. 74-12 (c) It is affirmatively found and determined that all of the 74-13 territory within the limits of cities listed in Subsection (a) as 74-14 of May 27, 1953, and all other territory subsequently annexed to 74-15 the authority under the provisions of this chapter relating to 74-16 annexation shall comprise the authority and that all of the 74-17 territory will benefit from the improvements and facilities to be 74-18 constructed, acquired, or otherwise furnished under this chapter. 74-19 (d) Any territory annexed to any city or town after it has 74-20 become part of the authority shall be automatically included within 74-21 the boundaries of the authority; provided, however, that if tax 74-22 obligations of any nature have previously been incurred by the 74-23 authority, the inclusion shall not become final until an election 74-24 has been held and a majority of the qualified voters residing in 74-25 the territory annexed has voted for inclusion under the provisions 74-26 for notice and election provided by Sections 253.007(g), (h), and 75-1 (i) pertaining to elections for the addition of territory and the 75-2 assumption of indebtedness and taxes. 75-3 Sec. 253.004. BOARD OF DIRECTORS. (a) The powers of the 75-4 authority shall be exercised by a board of directors. The 75-5 directors are elected by a majority vote of the governing body of 75-6 each city that constitutes a part of the authority. 75-7 (b) Constituent cities with a population of 10,000 or more 75-8 are entitled to two members on the board. Constituent cities with 75-9 a population of less than 10,000 are entitled to one member on the 75-10 board. 75-11 (c) In July of each year, the governing body of each 75-12 constituent city with a population of 10,000 or more shall elect 75-13 one director for a two-year term beginning August 1 of that year. 75-14 In July of each odd-numbered year, the governing body of each 75-15 constituent city with a population of less than 10,000 shall elect 75-16 one director for a two-year term beginning August 1 of that year. 75-17 (d) The governing body of each constituent city may fill, 75-18 for the balance of the unexpired term, any vacancy that occurs in 75-19 the office of any director elected by it. 75-20 (e) Directors elected as provided by this section shall be 75-21 certified to the board by the mayor of the city whose governing 75-22 body has made the election. 75-23 Sec. 253.005. QUALIFICATIONS OF BOARD MEMBERS. (a) To 75-24 qualify for election to the board, a person must be a qualified 75-25 voter and a property-owning taxpayer in the city from which the 75-26 person is elected and must not be a member of the governing body or 76-1 an employee of that city. 76-2 (b) Each director shall subscribe the constitutional oath of 76-3 office and shall hold office until a successor is elected and has 76-4 qualified. 76-5 (c) Each director who has been elected president, vice 76-6 president, or secretary shall give bond for the faithful 76-7 performance of the person's duties in the amount of $5,000. 76-8 Sec. 253.006. BOARD: ACTION; DUTIES; QUORUM; COMPENSATION 76-9 AND EXPENSES. (a) The board shall perform official actions by 76-10 resolution. A majority of the members of the board constitute a 76-11 quorum for the transaction of business of the authority. A 76-12 majority vote of the quorum present is sufficient in all official 76-13 actions including final passage and enactment of all resolutions, 76-14 except as otherwise specifically provided in this chapter. 76-15 (b) The board shall hold regular meetings. The dates of the 76-16 meetings are to be established in the authority's bylaws or by 76-17 resolution. 76-18 (c) The president or any three members of the board may call 76-19 special meetings as may be necessary in the administration of the 76-20 authority's business; provided, however, that at least five days 76-21 before the meeting date, the secretary shall mail notice of the 76-22 meeting to the address that each member has on file with the 76-23 secretary. Notice of special meetings may be waived in writing by 76-24 any director. 76-25 (d) Each director is entitled to receive a fee of not more 76-26 than $50 for each attendance at a board meeting and a fee of not 77-1 more than $50 for each day devoted to authority business other than 77-2 a board meeting. Each director is also entitled to reimbursement 77-3 for actual expenses incurred in carrying out authority business, 77-4 including attending a board meeting. Payment to a director for 77-5 services performed and expenses incurred is subject to the approval 77-6 of a majority of the board. 77-7 (e) The board shall elect a president of the authority. The 77-8 president is the chief executive officer of the authority. The 77-9 president presides at the meetings of the board and performs all 77-10 other functions incident to the office. 77-11 (f) The board shall elect from among its members a vice 77-12 president. The vice president acts as president in case of the 77-13 inability, absence, or failure of the president to act. 77-14 (g) The board shall elect a secretary, who may or may not be 77-15 chosen from among the members of the board. The secretary shall 77-16 ensure that all books and records of the authority are properly 77-17 kept. 77-18 Sec. 253.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other 77-19 territory may be annexed to the authority as provided by this 77-20 section. 77-21 (b) A petition for annexation must: 77-22 (1) be signed by 50 or a majority of the qualified 77-23 voters of the territory to be annexed; 77-24 (2) be filed with the board; and 77-25 (3) describe the territory to be annexed by metes and 77-26 bounds or by other appropriate description, unless the territory is 78-1 the same as that of a city or town, in which event it shall be 78-2 sufficient to state that the territory to be annexed is the same as 78-3 that contained within the city or town. 78-4 (c) If the board finds that the petition is signed by the 78-5 required number of qualified persons and otherwise complies with 78-6 Subsection (b), that the annexation would be in the interest of the 78-7 territory to be annexed and the authority, and that the authority 78-8 will be able to render service to the territory, the board shall, 78-9 provided two-thirds of all the board members vote in favor, adopt a 78-10 resolution stating the conditions, if any, under which the 78-11 territory may be annexed to the authority and declaring the board's 78-12 intention to call an election in the territory for the purpose of 78-13 submitting the proposition of whether the territory shall be 78-14 annexed to the authority. The board shall set a time and place for 78-15 a hearing to be held on the question of whether the territory to be 78-16 annexed will benefit from the improvements, works, and facilities 78-17 then owned and operated by the authority. 78-18 (d) Railroad right-of-way, transmission lines, and other 78-19 property of telephone and telegraph and electric and gas utilities 78-20 that are not situated within the defined limits of an incorporated 78-21 city or town will not benefit from the improvements, works, and 78-22 facilities that the authority is authorized to construct. Railroad 78-23 right-of-way, transmission lines, or other property of electric and 78-24 gas utilities or right-of-way or other property and facilities of 78-25 telephone and telegraph utilities may not be annexed to the 78-26 authority unless the right-of-way, transmission lines, and other 79-1 property of electric and gas utilities are contained within the 79-2 limits of an incorporated city or town annexed to the authority. 79-3 (e) Notice of the adoption of a resolution as provided by 79-4 Subsection (c) stating the time and place of the hearing, addressed 79-5 to the citizens and owners of property in the territory to be 79-6 annexed, shall be published one time in a newspaper designated by 79-7 the board and having general circulation in the territory, at least 79-8 10 days before the date of the hearing. The notice must describe 79-9 the territory in the same manner as required or permitted for the 79-10 petition under Subsection (b). The secretary shall mail notice of 79-11 the hearing addressed to the mayor and governing body of each 79-12 constituent city at least 30 days before the date of the hearing. 79-13 (f) All interested persons who reside in the authority or in 79-14 the territory seeking annexation may appear at the hearing and 79-15 offer evidence for or against the intended annexation. The hearing 79-16 may proceed in the order and under the rules prescribed by the 79-17 board and may be recessed from time to time. If, at the conclusion 79-18 of the hearing, the board finds that all of the lands in the 79-19 territory to be annexed will benefit from the present or 79-20 contemplated improvements, works, or facilities of the authority, 79-21 the board shall adopt a resolution calling an election in the 79-22 territory to be annexed, stating the date and place or places for 79-23 holding the election and appointing a presiding judge for each 79-24 voting place. A presiding judge shall appoint the necessary 79-25 assistant judges and clerks to assist in holding the election. 79-26 (g) Notice of the election, stating the date and places for 80-1 holding the election, the proposition to be voted on, and the 80-2 conditions under which the territory may be annexed, or making 80-3 reference to the resolution of the board for that purpose, shall be 80-4 published one time in a newspaper published in the territory to be 80-5 annexed and designated by the board, at least 10 days before the 80-6 dates set for the election. If no newspaper is published in the 80-7 territory to be annexed, it is sufficient if notices are posted at 80-8 three public places in the territory and the notice is published 80-9 one time, at least 10 days before the date set for the election, in 80-10 a newspaper having general circulation in the territory. 80-11 (h) Only qualified electors who reside in the territory to 80-12 be annexed may vote in the election. Returns of the election shall 80-13 be made to the board. 80-14 (i) The board shall canvass the returns of the election and 80-15 adopt a resolution declaring the results. If the resolution shows 80-16 that a majority of the votes cast are in favor of annexation to the 80-17 authority, the annexation shall be incontestable except in the 80-18 manner and within the time for contesting elections under the 80-19 Election Code. A certified copy of the order shall be recorded in 80-20 the deed records of the county in which the territory is situated. 80-21 (j) In calling an election on the proposition for the 80-22 annexation of territory, the board may include as part of the same 80-23 proposition the assumption of the territory's part of any 80-24 tax-supported obligations of the authority then outstanding and in 80-25 force, and, in the case of bonds, those previously voted but not 80-26 yet sold, and the levy of ad valorem taxes on taxable property in 81-1 the territory on the same basis as taxes are levied in the 81-2 remainder of the authority for the payment of the tax obligations. 81-3 If the proposition carries by a majority vote, the effect shall be 81-4 the same as that resulting from the separate assumption election 81-5 provided for in Subsection (k). 81-6 (k) After territory is added to the authority, the board may 81-7 call an election over the entire authority for the purpose of 81-8 determining whether the entire authority as enlarged shall assume 81-9 the taxes and tax-supported obligations then outstanding and in 81-10 force, and, in the case of bonds, those previously voted but not 81-11 yet sold, and whether ad valorem taxes shall be levied on all 81-12 taxable property within the authority as enlarged for the payment 81-13 of the obligations, unless the proposition is favorably voted along 81-14 with the annexation election and becomes lawfully binding on the 81-15 territory annexed. Notice of the elections provided for in this 81-16 subsection and Subsection (j) shall be given and the election shall 81-17 be held in the same manner as elections for the issuance of bonds 81-18 as provided by this chapter. 81-19 Sec. 253.008. GENERAL MANAGER; EMPLOYEES. (a) The board 81-20 may employ and determine the compensation of a general manager for 81-21 the authority and may delegate to the general manager full power 81-22 and authority to manage and operate the affairs of the authority, 81-23 subject only to the orders of the board. The board may also employ 81-24 and determine the compensation of such other employees as it 81-25 considers appropriate to the proper conduct of the authority's 81-26 affairs, including engineers, technical experts, attorneys, and 82-1 assistants to the authority's officers, including the general 82-2 manager. The board may remove any employee. 82-3 (b) The general manager is the official treasurer of the 82-4 authority and has charge of its funds. The general manager shall 82-5 see that the funds are safely kept and shall account for the funds 82-6 to the board. The general manager shall give bond in an amount 82-7 required by the board, but in no event may the amount be less than 82-8 $50,000. 82-9 Sec. 253.009. DISBURSEMENT OF FUNDS. The funds of the 82-10 authority shall be disbursed only on checks, drafts, orders, or 82-11 other instruments signed by the persons authorized by the bylaws 82-12 and resolutions of the board. 82-13 Sec. 253.010. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO 82-14 AUTHORITY. In consideration of the fact that the authority may be 82-15 incurring obligations and making expenditures, before funds are 82-16 available to pay the obligations and expenditures, for the purpose 82-17 of providing funds needed to procure necessary engineering surveys 82-18 and the collection and compilation of data relating to general 82-19 conditions influencing the determination of the character and 82-20 extent of the improvements, works, and facilities essential to the 82-21 accomplishment of any purpose of the authority, any city or town 82-22 within the authority may expend funds or use its services for such 82-23 engineering surveys and data. Any city or town within the 82-24 authority may appropriate money from its general funds or such 82-25 other funds as may be legally available for the purpose and may 82-26 donate and contribute the money to the authority, and the authority 83-1 may contract with any such city or town to repay any money advanced 83-2 as a loan to the authority. 83-3 Sec. 253.011. AUTHORITY OFFICE; RECORDS. An office shall be 83-4 established and maintained for the conduct of the authority's 83-5 business at a location determined by the board. The board shall 83-6 keep a true and full account of the proceedings of its meetings and 83-7 shall maintain its records in a secure manner. 83-8 Sec. 253.012. ACCOUNTS; AUDITS. (a) The board shall keep 83-9 complete and accurate accounts conforming to approved methods of 83-10 bookkeeping. The accounts and all contracts, documents, and 83-11 records of the authority shall be kept at the authority's principal 83-12 office and shall be open to public inspection at all reasonable 83-13 times. 83-14 (b) Once each year, the board shall have the books of 83-15 account and financial records of the authority for the preceding 83-16 year audited by an independent certified public accountant or firm 83-17 of certified public accountants. Copies of the written report of 83-18 the audit, certified to by the accountant or accountants, shall be 83-19 placed and kept on file at the office of the authority and shall be 83-20 open to public inspection at all reasonable times. 83-21 Sec. 253.013. AUTHORITY DEPOSITORY. (a) The board shall 83-22 designate one or more banks within the authority to serve as 83-23 depository for the funds of the authority. All funds of the 83-24 authority shall be deposited in the depository bank or banks except 83-25 funds pledged to pay bonds, which shall be deposited with the 83-26 trustee bank or paying agent named in the bond proceedings and to 84-1 the extent provided for in those proceedings. To the extent that 84-2 funds in the depository bank and the trustee bank are not insured 84-3 by the Federal Deposit Insurance Corporation, the funds shall be 84-4 secured in the manner provided by law for the security of county 84-5 funds. 84-6 (b) Before designating a depository bank or banks, the board 84-7 shall issue a notice stating the time and place at which the board 84-8 will meet to designate a depository bank or banks and inviting the 84-9 banks in the authority to submit applications to be designated 84-10 depositories. The notice must be published one time at least 10 84-11 days before the date of the board meeting in a newspaper or 84-12 newspapers published in the authority and specified by the board. 84-13 (c) At the time mentioned in the notice, the board shall 84-14 consider the applications and the management and condition of the 84-15 banks filing them and shall designate as depositories the bank or 84-16 banks that offer the most favorable terms and conditions for the 84-17 handling of the funds of the authority and that the board finds 84-18 have proper management and are in condition to warrant handling the 84-19 funds of the authority. The term of service for depositories shall 84-20 be prescribed by the board. 84-21 (d) If no acceptable applications are received by the time 84-22 stated in the notice, the board shall designate some bank or banks 84-23 within or outside the authority on terms and conditions it finds 84-24 advantageous to the authority. 84-25 Sec. 253.014. AUTHORITY POWERS. (a) In addition to those 84-26 otherwise provided by this chapter, the authority may exercise the 85-1 powers, rights, privileges, and functions provided by this section. 85-2 (b) The authority may store, control, conserve, protect, 85-3 distribute, and utilize, within or outside the authority or within 85-4 or outside the state, the storm waters and floodwaters and 85-5 unappropriated flow waters of the Canadian River and its 85-6 tributaries, and may prevent the escape of such waters without 85-7 first obtaining from them a maximum of public benefit, by the 85-8 construction of a dam or dams across that river and its tributaries 85-9 or otherwise, by complying with Chapter 11 and acting in such 85-10 manner as shall fully recognize and be in harmony with the 85-11 limitations of use of the waters of that river provided in the 85-12 Canadian River Compact in Chapter 43. The authority may also 85-13 provide, by purchase, contract, lease, or gift or in any other 85-14 lawful manner, and develop all facilities within or outside the 85-15 authority or within or outside the state considered necessary or 85-16 useful for the purpose of storing, controlling, conserving, 85-17 protecting, distributing, processing, and utilizing such surface 85-18 water and transporting it to the cities and areas comprising the 85-19 authority for municipal, domestic, industrial, and other useful 85-20 purposes permitted by law. 85-21 (c) The authority may acquire and develop within or outside 85-22 the authority or within or outside the state any other available 85-23 source of surface water, storm water, floodwater, groundwater, or 85-24 other water supply and may construct, acquire, and develop all 85-25 facilities deemed necessary or useful with respect to those 85-26 purposes. 86-1 (d) The authority may acquire, construct, develop, operate, 86-2 and maintain property of any kind, real, personal, or mixed, or any 86-3 interest in property, whether within or outside the authority or 86-4 within or outside the state, and may enter into contracts with any 86-5 person or legal entity and take actions necessary or convenient in 86-6 order to protect and preserve, and to prevent, eliminate, reduce, 86-7 or minimize the pollution, contamination, or deterioration of the 86-8 quality of, the water of the Canadian River or its tributaries or 86-9 the water of any other source of water supply to the authority and 86-10 in order to facilitate the use of the water for any lawful 86-11 purpose. 86-12 (e) The authority may acquire, construct, develop, operate, 86-13 and maintain any facilities or systems for drilling, pumping, 86-14 capturing, reducing, intercepting, eliminating, impounding, 86-15 controlling, using, injecting, or otherwise capturing and disposing 86-16 of brine, brackish water, saltwater, saline water, or other water 86-17 contaminated by any type of chlorine, sodium, sulfates, or other 86-18 chemical condition or characteristic detrimental to the quality of 86-19 the water, whether the source of contaminated water is groundwater 86-20 or surface water, within or outside the authority or within or 86-21 outside the state and whether the facilities or systems are located 86-22 within or outside the authority or within or outside the state. 86-23 (f) The authority may acquire or utilize surface water or 86-24 groundwater rights and develop surface water or groundwater 86-25 resources in any manner in furtherance of the purposes described in 86-26 Subsections (d) and (e). 87-1 (g) The authority may declare any facilities or system 87-2 acquired or constructed under Subsections (b)-(f) to be a part of 87-3 the authority's water supply system. 87-4 (h) The authority may acquire, by purchase, construction, 87-5 lease, or gift or in any other lawful manner, and maintain, use, 87-6 and operate property of any kind, real, personal, or mixed, or any 87-7 interest in property, within or outside the boundaries of the 87-8 authority or within or outside the state, necessary or convenient 87-9 to the exercise of the powers, rights, privileges, and functions 87-10 granted by the authority under this chapter. 87-11 (i) The authority may acquire by condemnation property of 87-12 any kind, real, personal, or mixed, or any interest in property, 87-13 within or outside the boundaries of the authority, necessary or 87-14 convenient to the exercise of the powers, rights, privileges, and 87-15 functions of the authority, in the manner provided by Chapter 21, 87-16 Property Code. The amount and character of the property to be 87-17 acquired shall be determined by the board; provided, however, that: 87-18 (1) the authority may not condemn property that may be 87-19 owned by any other political subdivision, city, or town; 87-20 (2) as against persons, firms, and corporations (or 87-21 their receivers or trustees) who have the power of eminent domain, 87-22 the fee title may not be condemned and the authority may condemn 87-23 only an easement; and 87-24 (3) the authority may not condemn groundwater rights. 87-25 (j) The authority may sell or otherwise dispose of any 87-26 surplus property of any kind, real, personal, or mixed, or any 88-1 interest in property not necessary to the operation of the 88-2 authority; provided, however, that in all cases in which the board 88-3 considers the value of the property to be in excess of $1,000, the 88-4 property shall be sold only on advertisement and competitive bids. 88-5 (k) The authority may require the relocation of roads and 88-6 highways in the manner and to the extent permitted to districts 88-7 organized under Section 59, Article XVI, Texas Constitution. The 88-8 cost of relocation of any roads, highways, railroads, or telephone 88-9 or telegraph properties or facilities made necessary by this 88-10 chapter and any reasonable actual damage incurred in changing and 88-11 adjusting the lines and grades of railroads or highways or roads or 88-12 telephone or telegraph properties or facilities shall be paid by 88-13 the authority. 88-14 (l) The authority may make contracts with any person or 88-15 legal entity, including the United States, the state, a political 88-16 subdivision or body politic and corporate of the state, any other 88-17 state, a political subdivision or body politic and corporate within 88-18 any other state, and any interstate compact commission or similar 88-19 organization, necessary or convenient to the exercise of the 88-20 powers, rights, privileges, and functions of the authority and may 88-21 take all actions and execute all instruments necessary or 88-22 convenient to the exercise of the powers, rights, privileges, and 88-23 functions of the authority. 88-24 (m) The authority may make or cause to be made surveys and 88-25 engineering investigations for the information of the authority to 88-26 facilitate the accomplishment of the purposes for which the 89-1 authority is created. 89-2 (n) The authority may borrow money for its corporate 89-3 purposes and may borrow money and accept grants, gratuities, or 89-4 other support from the United States or the state or from any 89-5 corporation or agency created or designated by the United States or 89-6 the state and in connection with any such loan, grant, or other 89-7 support may enter into such arrangement with the United States or 89-8 the state, or such corporation or agency of either, as the 89-9 authority may deem advisable. 89-10 (o) The authority may make and issue negotiable bonds for 89-11 funds borrowed in the manner and to the extent provided in this 89-12 chapter and, with reference to the bonds or otherwise, may contract 89-13 in any manner it sees fit and as may be required by any law 89-14 pertaining to loans, grants, or other support received from the 89-15 United States or the state or from a corporation or agency of the 89-16 United States or the state. 89-17 (p) The authority may make such contracts in the issuance of 89-18 bonds as may be considered necessary or convenient to insure the 89-19 marketability of the bonds. 89-20 (q) The authority may sue or be sued in its corporate name. 89-21 (r) The authority may adopt, use, and alter a corporate 89-22 seal. 89-23 (s) The authority may make bylaws for the management and 89-24 regulation of its affairs. 89-25 (t) The authority may set and collect charges and rates for 89-26 water services furnished by it and may impose penalties for failure 90-1 to pay the charges and rates when due; provided, however, that the 90-2 charges, rates, and penalties shall be set only by unanimous vote 90-3 of the members of the board constituting a quorum and who are 90-4 present at a regular meeting. 90-5 (u) The authority may cooperate and enter into contracts 90-6 with cities, persons, firms, corporations, and public agencies for 90-7 the purpose of supplying and selling them surface water, storm 90-8 water, floodwater, groundwater, and other water for municipal, 90-9 domestic, industrial, and other useful purposes permitted by law; 90-10 provided, however, that cities and areas constituting the authority 90-11 shall be accorded priority in the allocation of the authority's 90-12 available surface water, storm water, floodwater, groundwater, and 90-13 other water, and the board shall prescribe rules to carry out this 90-14 provision. A contract described by this subsection may be on such 90-15 terms and for such time as the parties may agree, and the contract 90-16 may provide that it shall continue in effect until the authority's 90-17 bonds specified in the contract and refunding bonds issued in lieu 90-18 of the bonds are fully paid. The authority of each member or other 90-19 city to enter into a contract with the authority for the sale of 90-20 water or other services or for any other purpose within the powers, 90-21 rights, privileges, and functions of the authority is vested 90-22 exclusively in the governing body of each member or other city 90-23 notwithstanding any provision of a home-rule charter or any local 90-24 ordinance of the member or other city or of any other provision of 90-25 any other law placing any restriction, limitation, or requirement 90-26 on the authority of the governing body of a member or other city to 91-1 enter into any such contract. No provision of the home-rule 91-2 charter or of any other ordinance of a member or other city, and no 91-3 provision of any other law, in conflict with this subsection will 91-4 invalidate or impair, in whole or in part, the enforceability and 91-5 validity of a contract entered into by the authority with a member 91-6 or other city pursuant to the powers, rights, privileges, and 91-7 functions of the authority. If the authority contracts with the 91-8 United States government or any of its agencies for a source of 91-9 water supply or for the furnishing of any facilities necessary or 91-10 useful to the authority in carrying out its purposes, the contract 91-11 entered into under authority of this subsection may provide that it 91-12 shall continue until the authority has fully discharged all 91-13 obligations incurred by it under the terms of its contract with the 91-14 United States government or its agencies. The authority may also 91-15 purchase surface water, storm water, floodwater, groundwater, and 91-16 other water supply from any person, firm, corporation, or public 91-17 agency or from the United States government or any of its 91-18 agencies. 91-19 (v) The authority may operate and maintain, with the consent 91-20 of the governing body of any city or town located within the 91-21 authority, any works, plants, or facilities of the city considered 91-22 necessary or convenient to the accomplishment of the purposes for 91-23 which the authority is created. 91-24 (w) The authority may levy, assess, and collect ad valorem 91-25 taxes to provide funds necessary to construct or acquire, maintain, 91-26 and operate improvements, works, plants, and facilities considered 92-1 essential and beneficial to the authority on a favorable majority 92-2 vote of the qualified electors voting at an election held for that 92-3 purpose within the authority and may also, when so authorized, 92-4 levy, assess, and collect taxes to provide funds adequate to defray 92-5 the cost of the maintenance, operation, and administration of the 92-6 authority. Elections for the voting of such taxes shall be ordered 92-7 by the board and shall be held and conducted as provided by this 92-8 chapter for elections for the issuance of bonds and the levy of 92-9 taxes in support of the bonds. When so levied such taxes, as well 92-10 as taxes levied in support of bond indebtedness as provided by this 92-11 chapter, constitute a lien on the property against which such taxes 92-12 are levied and assessed, and limitations shall not bar the 92-13 collection of the taxes and enforcement of such liens. 92-14 (x) The authority may do any and all acts and things 92-15 necessary or convenient to the exercise of the powers, rights, 92-16 privileges, or functions conferred on or permitted the authority by 92-17 any other law. 92-18 Sec. 253.015. CONSTRUCTION CONTRACTS; BIDDING. A contract 92-19 requiring an expenditure of more than $25,000 shall not be made 92-20 until after publication of a notice to bidders once each week for 92-21 two weeks before the contract is awarded. The notice shall be 92-22 sufficient if it states the time and place when and where the bids 92-23 will be opened, states the general nature of the work to be done or 92-24 the material, equipment, or supplies to be purchased, and states 92-25 when and on what terms copies of the plans and specifications may 92-26 be obtained. The publication shall be in a newspaper published in 93-1 the authority designated by the board. 93-2 Sec. 253.016. ISSUANCE OF BONDS. (a) For the purpose of 93-3 providing a source or sources of water supply for cities and other 93-4 users for municipal, domestic, industrial, and other useful 93-5 purposes permitted by law, as authorized by this chapter, and for 93-6 the purpose of carrying out any other power or authority conferred 93-7 by this chapter, including the powers conferred by Section 253.014, 93-8 the authority may issue negotiable bonds to be payable from such 93-9 net operating income and revenues or from such taxes, or from both 93-10 such revenues and taxes, of the authority as are pledged by 93-11 resolution of the board. In addition to the authority to issue 93-12 bonds for such purposes, the authority may also contract in any 93-13 other lawful manner and may prescribe the method of payment of any 93-14 such contract either by the use of net revenues, taxes, or both. 93-15 (b) Bonds must be authorized by resolution of the board, 93-16 bear the date or dates, mature at the time or times, and bear 93-17 interest at the rate or rates the board determines. The bonds must 93-18 be signed by the president and attested by the secretary and must 93-19 bear the seal of the authority. All bonds may be sold at a price 93-20 and under terms the board determines to be the most advantageous 93-21 and reasonably obtainable. Within the discretion of the board, 93-22 bonds may be made callable and subject to redemption before their 93-23 maturity at the times and prices prescribed in the authorizing 93-24 resolution. Interest on all bonds shall be payable annually or 93-25 semiannually within the discretion of the board. Bonds may be 93-26 issued in one or more than one series and from time to time as 94-1 required in carrying out the purpose of this chapter. The bonds 94-2 must be in such form, either coupon or registered, carry such 94-3 registration privileges as to principal only or as to both 94-4 principal and interest and as to exchange of coupon bonds for 94-5 registered bonds or vice versa and exchange of bonds of one 94-6 denomination for bonds of other denominations, and be payable at 94-7 such place or places within or outside the state as the board 94-8 determines and prescribes in the resolution or resolutions 94-9 authorizing the bonds. 94-10 (c) Bonds may be secured by a pledge of all or part of the 94-11 net revenues of the authority, of the net revenues of one or more 94-12 contracts made before or after the bonds are issued, or of other 94-13 revenues, in such manner as may be specified by resolution of the 94-14 board. A pledge may reserve the right, under conditions specified 94-15 in the pledge, to issue additional bonds which will be on a parity 94-16 with or subordinate to the bonds being issued. In this chapter, 94-17 "net revenues" means the gross revenues of the authority less the 94-18 amount necessary to pay the cost of maintaining and operating the 94-19 authority and its properties. 94-20 (d) If bonds are issued payable wholly or partially from ad 94-21 valorem taxes, the board shall levy a tax sufficient to pay the 94-22 bonds and the interest on the bonds as the bonds and interest 94-23 become due, but the rate of the tax for any year may be set after 94-24 giving consideration to the money received from the pledged 94-25 revenues that may be available for the payment of principal and 94-26 interest to the extent and in the manner permitted by the 95-1 resolution authorizing the issuance of the bonds. 95-2 (e) If bonds or any other contract payable wholly or 95-3 partially from revenues are issued or entered into, the board shall 95-4 set, by contract with all cities, persons, firms, corporations, or 95-5 public agencies that may contract with it for a water supply or 95-6 water facilities, rates of compensation for water sold and services 95-7 rendered by the authority sufficient to pay the expenses of 95-8 operating and maintaining the authority and its facilities and to 95-9 pay all such obligations incurred by it as they mature, including 95-10 such reserve and other funds as may be provided for the bonds or 95-11 other contracts under their terms and as may be provided in the 95-12 resolution pertaining to the bonds or contracts. 95-13 (f) From the proceeds of the sale of bonds, the authority 95-14 may set aside an amount for the payment of interest expected to 95-15 accrue during construction and for a reserve interest and sinking 95-16 fund, which provisions shall be made in the resolution authorizing 95-17 the bonds. Proceeds from the sale of bonds may also be used for 95-18 the payment of all expenses necessarily incurred in accomplishing 95-19 the purposes for which the authority is created, including the 95-20 expenses of issuing and selling the bonds. Pending the use of bond 95-21 proceeds for the purpose for which the bonds were issued, the 95-22 board, in its discretion, may invest the proceeds in obligations of 95-23 the United States government. 95-24 (g) In the event of a default or a threatened default in the 95-25 payment of the principal of or interest on bonds payable wholly or 95-26 partially from revenues, any court of competent jurisdiction may, 96-1 on petition of the holders of 25 percent of the outstanding bonds 96-2 of the issue in default or threatened with default, appoint a 96-3 receiver with authority to collect and receive all income of the 96-4 authority except taxes, employ and discharge agents and employees 96-5 of the authority, take charge of the authority's funds on hand 96-6 (except funds received from taxes, unless commingled), and manage 96-7 the proprietary affairs of the authority without consent or 96-8 hindrance by the board. The receiver may also be authorized to 96-9 sell or make contracts for the sale of water or renew such 96-10 contracts with the approval of the court appointing the receiver. 96-11 (h) Bonds issued by the authority pursuant to the provisions 96-12 of this chapter are negotiable instruments under the laws of this 96-13 state. 96-14 (i) Before bonds are sold by the authority, a certified copy 96-15 of the proceedings for the issuance of the bonds, including the 96-16 form of the bonds, together with any other information the attorney 96-17 general may require, shall be submitted to the attorney general. 96-18 If the attorney general finds that the bonds have been issued in 96-19 accordance with law, the attorney general shall approve the bonds 96-20 and execute a certificate of approval, which shall be filed in the 96-21 office of the comptroller and be recorded in a record kept for that 96-22 purpose. A bond may not be issued until the bond has been 96-23 registered by the comptroller, who shall register the bond if the 96-24 attorney general has filed a certificate approving the bonds and 96-25 the proceedings for the issuance of the bonds with the comptroller 96-26 as provided in this section. If bonds or the proceedings 97-1 pertaining to the bonds recite that they are secured by a pledge of 97-2 the proceeds of a contract previously made between the authority 97-3 and a city, district, or other user, a copy of the contract and the 97-4 proceedings of the contracting parties shall be submitted to the 97-5 attorney general along with the bond record, and if the bonds have 97-6 been duly authorized and the contracts made in compliance with law, 97-7 the attorney general shall approve the bonds and contracts and the 97-8 bonds shall be registered by the comptroller. After approval by 97-9 the attorney general, the bonds and contracts are valid and binding 97-10 and are incontestable for any cause. 97-11 (j) Whenever the authority has issued bonds, including 97-12 interim or temporary bonds, or has contracted with the United 97-13 States or with the state, or a corporation or agency of either, in 97-14 connection with the financing of its works or facilities, the 97-15 authority may validate the bonds or contracts by suit as provided 97-16 by Sections 51.423-51.431. 97-17 (k) Pending the issuance of definitive bonds, the authority 97-18 may issue and deliver interim or temporary bonds. The interim or 97-19 temporary bonds thus issued may be taken up with the proceeds of 97-20 the definitive bonds, or the definitive bonds may be issued and 97-21 delivered in exchange for and in substitution of the interim or 97-22 temporary bonds. After an exchange and substitution, the authority 97-23 shall file proper certificates with the comptroller as to the 97-24 exchange, substitution, and cancellation. The certificates shall 97-25 be recorded by the comptroller. 97-26 (l) The board may issue refunding bonds for the purpose of 98-1 refunding any outstanding bonds authorized by this chapter and 98-2 interest on the bonds without the necessity of an election. 98-3 Refunding bonds may be issued to refund more than one series of 98-4 outstanding bonds, and in the case of bonds secured in whole or in 98-5 part by net revenues, the authority may combine the pledges for the 98-6 outstanding bonds for the security of the refunding bonds and may 98-7 secure the refunding bonds by other or additional revenues. The 98-8 provisions of this chapter with reference to the issuance of other 98-9 bonds and their approval by the attorney general and the rights and 98-10 remedies of the holders shall be applicable to refunding bonds. 98-11 Refunding bonds shall be registered by the comptroller on surrender 98-12 and cancellation of the bonds to be refunded; but in lieu of this 98-13 procedure, the resolution authorizing the issuance of the refunding 98-14 bonds may provide that the refunding bonds shall be sold and the 98-15 proceeds deposited in the bank where the original bonds are 98-16 payable, in which case the refunding bonds may be issued in an 98-17 amount sufficient to pay the interest on the original bonds to 98-18 their option date or maturity date and the comptroller shall 98-19 register the refunding bonds without concurrent surrender and 98-20 cancellation of the original bonds. 98-21 (m) Bonds, including refunding bonds, authorized by this 98-22 chapter that are not payable wholly from ad valorem taxes may be 98-23 additionally secured by a trust indenture under which the trustee 98-24 may be a bank with trust powers that is situated either within or 98-25 outside the state. The trust indenture or mortgage may include 98-26 provisions for a lien on all or part of the physical properties of 99-1 the authority and franchises, easements, water rights and 99-2 appropriation permits, leases and contracts, and all rights 99-3 appurtenant to such properties, vesting in the trustee power to 99-4 sell the properties for payment of the indebtedness thus secured 99-5 and power to operate the properties and all other powers and 99-6 authority for the further security of the bonds. The trust 99-7 indenture, regardless of the existence of a deed of trust lien, may 99-8 contain provisions prescribed by the board for the security of the 99-9 bonds and the preservation of the trust estate, including provision 99-10 for amendment or modification thereof and the issuance of bonds to 99-11 replace lost or mutilated bonds secured by the trust indenture. A 99-12 purchaser under a sale under a deed of trust lien, where one is 99-13 given, shall be the owner of the properties, facilities, and rights 99-14 so purchased and shall have the right to maintain and operate the 99-15 properties, facilities, and rights during the period prescribed by 99-16 the trust indenture. 99-17 (n) Bonds supported in whole or in part by taxes to be 99-18 levied by the authority, except refunding bonds related to the 99-19 bonds, may not be issued unless the bonds are authorized by an 99-20 election at which only the qualified voters who reside in the 99-21 authority may vote and unless a majority of the votes cast at the 99-22 authoritywide election is in favor of the issuance of the bonds. 99-23 (o) A bond election for the issuance of bonds supported in 99-24 whole or in part by taxes may be called by the board without a 99-25 petition. The resolution calling the election shall specify the 99-26 time and location of the election, the purpose for which the bonds 100-1 are to be issued, the maximum amount of the bonds, the maximum 100-2 maturity of the bonds, the maximum interest rate, the form of the 100-3 ballot, and the presiding judge for each voting place. The 100-4 presiding judge serving at each voting place shall appoint the 100-5 necessary assistant judges and clerks for holding the election. 100-6 Notice of the election must be given by publishing a substantial 100-7 copy of the resolution calling the election in a newspaper or 100-8 newspapers of general circulation in each city contained in the 100-9 authority once a week for two consecutive weeks. The first 100-10 publication must be at least 21 days before the date of the 100-11 election. The returns of the election shall be made to and 100-12 canvassed by the board. The Election Code applies to elections 100-13 held under this section, except as otherwise provided in this 100-14 chapter. 100-15 (p) Bonds of the authority supported by revenues or sources 100-16 other than taxes to be levied by the authority may be issued as 100-17 otherwise provided by this chapter without holding an election to 100-18 approve the bonds. 100-19 (q) The authority may issue bond anticipation notes for any 100-20 purpose for which bonds of the authority may be authorized or for 100-21 the purpose of refunding previously issued bond anticipation notes. 100-22 The authority may covenant with the purchasers of the bond 100-23 anticipation notes that the authority will use the proceeds of sale 100-24 of any bonds authorized by the authority for the purpose of 100-25 refunding the bond anticipation notes, in which case the authority 100-26 will be required to use the proceeds received from sale of the 101-1 bonds to pay principal, interest, or redemption price on the bond 101-2 anticipation notes. To the extent applicable, the terms and 101-3 conditions of this chapter relating to bonds of the authority apply 101-4 to the bond anticipation notes. 101-5 (r) In addition to the power to issue bonds as provided by 101-6 this chapter, the authority may issue bonds for any purpose and in 101-7 any manner authorized by general law for water control and 101-8 improvement districts or may issue bonds in any other manner 101-9 authorized by law. Section 49.181 does not apply to the issuance 101-10 of bonds or to the construction projects funded by bonds. 101-11 Sec. 253.017. NO EXCLUSION OF LANDS OR OTHER PROPERTY 101-12 REQUIRED. The provisions of Subchapter J, Chapter 49, or other 101-13 statutes relating to the exclusion of lands or other property shall 101-14 not be applicable to the authority. 101-15 Sec. 253.018. CONTRACTS WITH UNITED STATES OR ITS AGENCIES; 101-16 ELECTIONS. (a) The authority may contract with the United States 101-17 government and any of its agencies or contract under the federal 101-18 reclamation laws for the construction, operation, and maintenance 101-19 of any work or facility by which water may be supplied and 101-20 distributed to the authority under any act of Congress providing or 101-21 permitting such contract, and for the accomplishment of all other 101-22 powers and purposes of the authority including those described in 101-23 Section 253.014, and the authority shall further have all the 101-24 rights, powers, privileges, and authority granted under the general 101-25 laws of the state in that respect. 101-26 (b) A contract entered into pursuant to Subsection (a) may 102-1 provide that on the repayment of all amounts to become due under 102-2 the contract, title to all facilities constructed pursuant to the 102-3 contract, including any dam or reservoir, shall pass to and be 102-4 lodged in the authority, or the contract may provide that the 102-5 authority shall be vested with absolute control over the release 102-6 and use of waters stored in the facilities and belonging to the 102-7 authority as long as the authority remains current in the payment 102-8 of the amounts due the United States government or its agency under 102-9 the contract. In all events, title to its water rights shall 102-10 continue to remain in the authority. 102-11 (c) If a contract is proposed to be made whereby the 102-12 authority will become obligated to make payments wholly or 102-13 partially from ad valorem taxes to be levied by the authority, the 102-14 contract shall not be entered into unless authorized by an election 102-15 at which only the qualified voters who reside in the authority may 102-16 vote and a majority of the votes cast at the election is in favor 102-17 of the execution of the contract. All methods prescribed in 102-18 Sections 253.016 (n) and (o) relating to the voting of bonds are 102-19 applicable to the voting of contracts if an election is required 102-20 under this section. 102-21 (d) If the authority enters into a contract with the United 102-22 States government or any of its agencies as provided in this 102-23 section, no subsequent alteration in the organization of the 102-24 authority shall be effected and no proceedings for the exclusion of 102-25 any area of the authority shall be undertaken under the provisions 102-26 of any law unless such alterations and exclusions have first 103-1 received the approval of the United States government or its 103-2 contracting agency. 103-3 Sec. 253.019. WATER PERMITS. The authority is authorized to 103-4 acquire and own water permits on compliance with the provisions of 103-5 the general law pertaining to such permits as provided by Chapter 103-6 11. 103-7 Sec. 253.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 103-8 DEPOSITS. Bonds of the authority are legal and authorized 103-9 investments for banks, savings banks, trust companies, building and 103-10 loan associations, savings and loan associations, insurance 103-11 companies, fiduciaries, trustees, and guardians, for the sinking 103-12 funds of cities, towns, villages, counties, school districts, or 103-13 other political subdivisions of the state, and for all public funds 103-14 of the state or its agencies including the permanent school fund. 103-15 Such bonds are eligible to secure the deposit of all public funds 103-16 of the state and all public funds of cities, towns, villages, 103-17 counties, school districts, or other political corporations or 103-18 subdivisions of the state, and such bonds shall be lawful and 103-19 sufficient security for such deposits to the extent of their value 103-20 when accompanied by all unmatured coupons. 103-21 Sec. 253.021. BONDS EXEMPT FROM TAXATION. The 103-22 accomplishment of the purposes stated in this chapter are for the 103-23 benefit of the people of this state and for the improvement of 103-24 their properties and industry. The authority, in carrying out the 103-25 purposes of this chapter, will be performing an essential public 103-26 function under the constitution and shall not be required to pay 104-1 any tax or assessment on the project or any part of the project, 104-2 and the bonds or other obligations issued under this chapter and 104-3 the transfer of and income from the bonds, including profits on the 104-4 sale of the bonds, shall at all times be free from taxation by the 104-5 state or by any municipal corporation, county, or other political 104-6 subdivision or taxing district of the state. 104-7 Sec. 253.022. TAXATION. Before the issuance of authority 104-8 bonds or the execution of a contract payable wholly or partially 104-9 from ad valorem taxes, the board shall appoint a tax assessor and 104-10 collector and a board of equalization and shall cause taxes to be 104-11 assessed, valuations to be equalized, and tax rolls to be prepared. 104-12 The board may also appoint deputies to assist the tax assessor and 104-13 collector in the manner and for the period it may order. Where 104-14 applicable and not in conflict with this section, the general laws 104-15 relating to water control and improvement districts with reference 104-16 to tax assessors and collectors, boards of equalization, tax rolls, 104-17 and the levy and collection of taxes and delinquent taxes shall be 104-18 applicable to the authority, except that the board of equalization 104-19 to be appointed each year by the board shall consist of one member 104-20 residing in each city then contained in the authority. All taxes 104-21 to be levied, assessed, and collected by the authority shall be on 104-22 an ad valorem basis and all provisions of the general laws 104-23 pertaining to the levy, assessment, and collection of ad valorem 104-24 taxes by water control and improvement districts, including the 104-25 enforcement of such provisions and the processes for the collection 104-26 of delinquent taxes provided in such provisions, shall be 105-1 applicable to the authority. 105-2 Sec. 253.023. ADOPTION OF RULES AND REGULATIONS. The board 105-3 may adopt and promulgate reasonable rules and regulations to 105-4 secure, maintain, and preserve the sanitary condition of all water 105-5 in and to flow into any reservoir owned by the authority or which 105-6 it may control, by contract or otherwise, to prevent the waste or 105-7 unauthorized use of water, and to regulate residence, hunting, 105-8 fishing, boating, and camping, and all recreational and business 105-9 privileges, along, around, or on any such reservoir or any body of 105-10 land or easement owned or controlled by the authority. 105-11 Sec. 253.024. RECREATIONAL FACILITIES. The authority may 105-12 establish or otherwise provide for public parks and recreation 105-13 facilities and may acquire for such purposes land adjacent to any 105-14 reservoir in which the authority owns water storage rights; 105-15 provided, however, that no money received from taxation or bonds 105-16 payable wholly or partially from taxation shall be used for such 105-17 purposes. The authority may also contract for the lease of lands 105-18 acquired by it for recreation or concession purposes under terms as 105-19 the board may determine. 105-20 Sec. 253.025. VOTING PLACES. For the purposes of all 105-21 authority elections to be conducted under the provisions of this 105-22 chapter, the voting places shall conform as nearly as conveniently 105-23 possible with those customarily designated for election purposes in 105-24 the various cities or areas comprising the authority. 105-25 Sec. 253.026. TERRITORY DETACHED FROM ANY OTHER DISTRICT OR 105-26 AUTHORITY. The authority, with its granted powers, shall take 106-1 precedence over and stand in lieu of any other water district 106-2 previously organized over the same territory or organized and 106-3 created in any manner over the same territory under any general or 106-4 special law, and such territory under the provisions of this 106-5 chapter is declared to be detached from all other districts or 106-6 authorities established under Section 59, Article XVI, Texas 106-7 Constitution, including particularly the Panhandle Water 106-8 Conservation Authority, established by Chapter 256, Acts of the 106-9 45th Legislature, Regular Session, 1937. The authority may 106-10 coordinate its plans with any conservation, reclamation, or other 106-11 district previously created, with powers provided in Section 59, 106-12 Article XVI, Texas Constitution, and may enter into joint 106-13 undertaking for the purposes for which the districts are created; 106-14 provided, however, that all such acts must be approved by a 106-15 majority of the board of directors of each district or authority 106-16 involved. 106-17 Sec. 253.027. BONDS OF OFFICERS AND EMPLOYEES. All bonds 106-18 required to be given by officers and employees of the authority 106-19 shall be executed by a surety company authorized to do business in 106-20 the state. The authority may pay the premiums on the bonds. 106-21 Sec. 253.028. CONFLICTS. (a) All powers conferred by the 106-22 general laws of the state pertaining to water control and 106-23 improvement districts shall be applicable to the authority to the 106-24 extent that those laws are not in conflict with the provisions of 106-25 this chapter. 106-26 (b) Nothing in this chapter shall be construed to violate 107-1 any provision of the federal or state constitutions, and all acts 107-2 done under this chapter shall be done in such a manner as will 107-3 conform to the provisions of those constitutions, whether expressly 107-4 provided in this chapter or not. If any procedure under this 107-5 chapter is held by a court to be violative of either constitution, 107-6 the authority shall have the power by resolution to provide an 107-7 alternative procedure conformable with the constitutions. 107-8 Sec. 253.029. COMPLIANCE WITH CANADIAN RIVER COMPACT. 107-9 Nothing in this chapter shall be construed in any manner that might 107-10 preclude full compliance with the provisions of the Canadian River 107-11 Compact, entered into and signed by the states of Texas, New 107-12 Mexico, and Oklahoma and the federal government on December 6, 107-13 1950. All actions and rights existing under the authority of this 107-14 chapter shall be controlled to the extent necessary to afford full 107-15 compliance with the terms of the compact. 107-16 Sec. 253.030. BOND NOT REQUIRED. The authority shall not be 107-17 required to give a cost or supersedeas bond or to pay a cost 107-18 deposit on any appeal from the judgment of any court of this state. 107-19 CHAPTER 254. CENTRAL COLORADO RIVER AUTHORITY 107-20 Sec. 254.001. CREATION. (a) A conservation and reclamation 107-21 district to be known as the "Central Colorado River Authority" is 107-22 created. The authority is a governmental agency and a body politic 107-23 and corporate. 107-24 (b) The authority is created under and is essential to 107-25 accomplish the purposes of Section 59, Article XVI, Texas 107-26 Constitution. 108-1 (c) The authority may exercise the rights, privileges, and 108-2 functions provided by this chapter including, to the extent 108-3 authorized by this chapter, the control, storing, preservation, and 108-4 distribution of the waters of the Central Colorado River and its 108-5 tributaries for domestic, municipal, flood control, irrigation, 108-6 power, and other useful purposes; the reclamation and irrigation of 108-7 arid, semiarid, and other lands needing irrigation; and the 108-8 conservation and development of the forests, water, and 108-9 hydroelectric power of the state. 108-10 (d) Nothing in this chapter or in any other law shall be 108-11 construed as authorizing the authority to levy or collect taxes or 108-12 assessments, or to create any indebtedness payable out of taxes or 108-13 assessments, or in any way to pledge the credit of the state. 108-14 Sec. 254.002. DEFINITIONS. In this chapter: 108-15 (1) "Authority" means the Central Colorado River 108-16 Authority. 108-17 (2) "Board" means the board of directors of the 108-18 authority. 108-19 (3) "Director" means a member of the board. 108-20 Sec. 254.003. TERRITORY. The authority consists of all the 108-21 territory included within the boundaries of Coleman County. 108-22 Sec. 254.004. POWERS AND DUTIES. (a) Except as expressly 108-23 limited by this chapter, the authority may exercise all the powers, 108-24 rights, privileges, and functions conferred by general law on 108-25 districts created under Section 59, Article XVI, Texas 108-26 Constitution, and as provided by this section. 109-1 (b) The authority may control, store, and preserve, within 109-2 the boundaries of the authority, the waters of the Colorado River 109-3 and its tributaries for any useful purpose and may use, distribute, 109-4 and sell those waters within the boundaries of the authority for 109-5 any useful purpose. 109-6 (c) The authority may develop and generate waterpower and 109-7 electric energy within the boundaries of the authority and may 109-8 distribute and sell waterpower and electric energy within or 109-9 outside the boundaries of the authority; but such use shall be 109-10 subordinate and inferior to all requirements for domestic, 109-11 municipal, and irrigation purposes. 109-12 (d) The authority may prevent or aid in the prevention of 109-13 damage to person or property from the waters of the Colorado River 109-14 and its tributaries. 109-15 (e) The authority may forest and reforest and aid in the 109-16 foresting and reforesting of the watershed area of the Colorado 109-17 River and its tributaries and may prevent and aid in the prevention 109-18 of soil erosion and floods within the watershed area. 109-19 (f) The authority may acquire by purchase, lease, or gift or 109-20 in any other manner, other than by condemnation, and may maintain, 109-21 use, and operate property of any kind, real, personal, or mixed, or 109-22 any interest in property, within or outside the boundaries of the 109-23 authority, necessary or convenient to the exercise of the powers, 109-24 rights, privileges, and functions conferred on the authority by 109-25 this chapter. 109-26 (g) The authority may acquire by condemnation property of 110-1 any kind, real, personal, or mixed, or any interest in property, 110-2 within the boundaries of the authority necessary or convenient to 110-3 the exercise of the powers, rights, privileges, and functions 110-4 conferred on the authority by this chapter. The authority may 110-5 condemn property in the manner provided by general law with respect 110-6 to condemnation or, at the option of the authority, in the manner 110-7 provided by the statutes relating to condemnation by districts 110-8 organized under general law pursuant to Section 59, Article XVI, 110-9 Texas Constitution. 110-10 (h) The authority may, subject to the provisions of this 110-11 chapter, sell or otherwise dispose of property of any kind, real, 110-12 personal, or mixed, or any interest in property, that is not 110-13 necessary to carrying on the business of the authority. 110-14 (i) The authority may overflow and inundate any public lands 110-15 and public property and may require the relocation of roads and 110-16 highways in the manner and to the extent permitted to districts 110-17 organized under general law pursuant to Section 59, Article XVI, 110-18 Texas Constitution. 110-19 (j) The authority may construct, extend, improve, maintain, 110-20 and reconstruct, or cause to be constructed, extended, improved, 110-21 maintained, and reconstructed, and may use and operate facilities 110-22 of any kind necessary or convenient to the exercise of its powers, 110-23 rights, privileges and functions. 110-24 (k) The authority may sue and be sued in its corporate name. 110-25 (l) The authority may make bylaws for the management and 110-26 regulation of its affairs. 111-1 (m) The authority may adopt, use, and alter a corporate 111-2 seal. 111-3 (n) The authority may appoint officers, agents, and 111-4 employees and may prescribe their duties and fix their 111-5 compensation. 111-6 (o) The authority may make contracts and execute instruments 111-7 necessary or convenient to the exercise of the powers, rights, 111-8 privileges, and functions conferred on the authority by this 111-9 chapter. 111-10 (p) The authority may borrow money for its corporate 111-11 purposes and may borrow money and accept grants from the United 111-12 States or a corporation or agency created or designated by the 111-13 United States and, in connection with such loan or grant, may enter 111-14 into such agreements as the United States or such corporation or 111-15 agency may require. The authority may make and issue negotiable 111-16 bonds for funds borrowed in the manner and to the extent provided 111-17 by Section 254.012. Nothing in this chapter shall be construed to 111-18 authorize the issuance of any bonds, notes, or other evidences of 111-19 indebtedness of the authority except as specifically provided by 111-20 this chapter, and no issuance of bonds, notes, or other evidences 111-21 of indebtedness of the authority except as specifically provided by 111-22 this chapter shall ever be authorized except by an act of the 111-23 legislature. 111-24 (q) The authority may do any and all other acts or things 111-25 necessary or convenient to the exercise of the powers, rights, 111-26 privileges, or functions conferred on the authority by this chapter 112-1 or any other act or law. 112-2 Sec. 254.005. LIMITATIONS ON AUTHORITY. (a) The authority 112-3 may not be permitted to use for irrigation purposes any water under 112-4 any law or permits issued or held, owned, or enjoyed by the 112-5 authority or which have been acquired from the Colorado River 112-6 Corporation or any other company or person unless such use is 112-7 expressly authorized by permits granted to the authority by the 112-8 commission under authority of law. In considering applications by 112-9 the authority, the commission shall at all times consider the needs 112-10 of the people living within and on the lands lying within the 112-11 watershed of the Colorado River and its tributaries above the 112-12 authority; provided, however, that nothing in this subsection shall 112-13 prevent the authority from selling, for irrigation purposes within 112-14 the boundaries of the authority, any water impounded by it under 112-15 authority of law. 112-16 (b) Notwithstanding any rights or permits issued by the 112-17 commission or its predecessor agency that are held or acquired by 112-18 the authority, the impounding and use of the floodwaters of the 112-19 Colorado River or its tributaries for the generation of 112-20 hydroelectric power by the authority or anyone who may succeed to 112-21 the rights and privileges conferred on the authority by this 112-22 chapter are subject to the rights of a person, municipal 112-23 corporation, or body politic that is impounding or putting to 112-24 beneficial use such waters for the purposes set forth in Section 112-25 11.024(1)-(3) if the person, municipal corporation, or body 112-26 politic: 113-1 (1) has received a permit for the use from the 113-2 commission; or 113-3 (2) is permitted by law to impound water for the 113-4 purposes described by this subsection. 113-5 (c) Nothing in this chapter shall be construed to subject to 113-6 condemnation by the authority, or by any successors of the 113-7 authority or anyone who may succeed to the rights and privileges 113-8 conferred on the authority by this chapter, any waters: 113-9 (1) impounded or to be impounded within or outside the 113-10 authority under any law authorizing water to be impounded or under 113-11 any permits granted to a municipal corporation or body politic; or 113-12 (2) impounded or permitted to be impounded or used 113-13 outside the authority under permits granted to any person. 113-14 (d) Nothing in this chapter shall be construed as depriving 113-15 any person or municipality of the right to impound the waters of 113-16 the Colorado River or its tributaries for domestic or municipal 113-17 purposes or as repealing any law granting such rights to persons 113-18 and municipalities. 113-19 (e) All rights of the authority to impound, use, and sell 113-20 the waters of the Colorado River and its tributaries for the 113-21 generation of hydroelectric power are subordinate and inferior to 113-22 the rights of: 113-23 (1) cities and towns situated within the watershed of 113-24 the Colorado River and its tributaries to build dams and impound 113-25 floodwaters for municipal purposes; and 113-26 (2) any citizens of Texas, or bodies politic, to build 114-1 dams and impound the floodwaters within the watershed of the 114-2 Colorado River and its tributaries for domestic purposes and for 114-3 the purposes of irrigation. 114-4 (f) The title to any rights, properties, licenses, 114-5 franchises, or permits acquired, or to be acquired, by the 114-6 authority shall be subject to the limitations imposed by Subsection 114-7 (e). 114-8 Sec. 254.006. BOARD OF DIRECTORS. (a) The powers, rights, 114-9 privileges, and functions of the authority shall be exercised by a 114-10 board consisting of nine directors. 114-11 (b) Each director must be a resident and freehold property 114-12 taxpayer of the state and a resident of the authority. 114-13 (c) The directors shall be appointed by the governor with 114-14 the advice and consent of the senate. A person is not eligible for 114-15 appointment if the person has, during the three years immediately 114-16 preceding the person's appointment, been employed by an electric 114-17 power and light company, gas company, telephone company, or any 114-18 other utility company of any kind. Directors are appointed for 114-19 staggered terms of six years, with three directors' terms expiring 114-20 on February 1 of each odd-numbered year. At the expiration of the 114-21 term of a director, a successor shall be appointed by the governor. 114-22 (d) Each director shall hold office until the expiration of 114-23 the term for which the director was appointed and until a successor 114-24 is appointed and has qualified, unless removed sooner as provided 114-25 by this chapter. 114-26 (e) A director may be removed by the governor for 115-1 inefficiency, neglect of duty, or misconduct in office after at 115-2 least 10 days' written notice of the charges against the director 115-3 and an opportunity to be heard in person or by counsel at a public 115-4 hearing. A vacancy resulting from the death, resignation, or 115-5 removal of a director shall be filled by the governor for the 115-6 unexpired term. Each director shall qualify by taking the official 115-7 oath of office prescribed by general statute. 115-8 (f) Each director is entitled to receive a fee of $10 per 115-9 day for each day spent in attending meetings of the board. 115-10 (g) Until the adoption of bylaws setting the time and place 115-11 of regular meetings and the manner in which special meetings may be 115-12 called, meetings of the board shall be held at such times and 115-13 places as five of the directors may designate in writing. Five 115-14 directors constitute a quorum at any meeting. 115-15 (h) Except as otherwise provided in this chapter or in the 115-16 bylaws, all actions may be taken by the affirmative vote of a 115-17 majority of the directors present at any meeting, except that an 115-18 affirmative vote of at least five directors is required to 115-19 authorize or ratify a contract that involves an amount greater than 115-20 $10,000 or that is to run for a period longer than one year, the 115-21 issuance of bonds, notes, or other evidence of indebtedness, or 115-22 amendment of the bylaws. 115-23 Sec. 254.007. OFFICERS; EMPLOYEES. (a) The board shall 115-24 select a secretary, who shall keep true and complete records of all 115-25 proceedings of the board. Until the appointment of a secretary, or 115-26 in the event of the secretary's absence or inability to act, a 116-1 secretary pro tempore shall be selected by the board. 116-2 (b) The board shall select a general manager, who shall be 116-3 the chief executive officer of the authority. 116-4 (c) The board shall select a treasurer, who may also hold 116-5 the office of secretary. 116-6 (d) The officers have the powers and duties, hold office for 116-7 the term, and are subject to removal in the manner provided in the 116-8 bylaws. The board shall set the compensation of the officers. 116-9 (e) The board may appoint officers, agents, and employees, 116-10 may set their compensation and term of office and the method by 116-11 which they may be removed, and may delegate to them the power and 116-12 duties it determines appropriate. 116-13 Sec. 254.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The 116-14 funds of the authority may be disbursed only on checks, drafts, 116-15 orders, or other instruments signed by the persons authorized by 116-16 the bylaws or a resolution concurred in by not less than five 116-17 directors. 116-18 (b) The general manager, the treasurer, and all other 116-19 officers, agents, and employees of the authority charged with the 116-20 collection, custody, or payment of any funds of the authority shall 116-21 give bond conditioned on the faithful performance of their duties 116-22 and an accounting for all funds and property of the authority 116-23 coming under their control. 116-24 (c) The bonds must be in a form and amount and with a surety 116-25 (by a surety company authorized to do business in the state) 116-26 approved by the board. 117-1 (d) The premiums on the bonds shall be paid by the authority 117-2 and charged as an operating expense. 117-3 Sec. 254.009. AUTHORITY OFFICE; RECORDS. (a) The domicile 117-4 of the authority shall be in the city of Coleman, Coleman County, 117-5 where the authority shall maintain its principal office in the 117-6 charge of the general manager. 117-7 (b) The authority shall keep complete and accurate accounts 117-8 conforming to approved methods of bookkeeping. 117-9 (c) The accounts and all contracts, documents, and records 117-10 of the authority shall be kept at the principal office. The 117-11 accounts and contracts shall be open to public inspection at all 117-12 reasonable times. 117-13 (d) The board shall cause to be made and completed, within 117-14 90 days after the end of each calendar year, an audit of the books 117-15 of account and financial records of the authority for that calendar 117-16 year. The audit shall be made by an independent certified public 117-17 accountant or firm of certified public accountants. 117-18 (e) Copies of a written report of the audit, certified to by 117-19 the accountant or accountants, shall be placed and kept on file 117-20 with the commission, with the comptroller, and at the principal 117-21 office of the authority, and the report shall be open to public 117-22 inspection at all reasonable times. 117-23 Sec. 254.010. CONFLICT OF INTEREST; PENALTY. A director, 117-24 officer, agent, or employee of the authority may not have an 117-25 interest, directly or indirectly, in any contract for the purchase 117-26 of any property or construction of any work by or for the 118-1 authority. If a director, officer, agent, or employee of the 118-2 authority is or becomes interested in a contract described by this 118-3 section, the person shall be guilty of a felony and on conviction 118-4 shall be subject to a fine not to exceed $10,000 or confinement in 118-5 the county jail for not less than one year or more than 10 years, 118-6 or both a fine and confinement. 118-7 Sec. 254.011. RATES AND CHARGES. (a) The board shall 118-8 establish and collect rates and other charges for the sale or use 118-9 of water, water connections, power, electric energy, or other 118-10 services sold, furnished, or supplied by the authority. The fees 118-11 and charges must be reasonable and nondiscriminatory and sufficient 118-12 to produce revenues adequate to: 118-13 (1) pay all expenses necessary to the operation and 118-14 maintenance of the properties and facilities of the authority; 118-15 (2) pay the interest on and principal of all bonds 118-16 issued under this chapter as the interest and principal become due 118-17 and payable; 118-18 (3) pay all sinking fund and reserve fund payments 118-19 agreed to be made with respect to bonds and payable out of 118-20 revenues, as the payments become due and payable; and 118-21 (4) fulfill the terms of any agreements made with the 118-22 holders of bonds or with any person in their behalf. 118-23 (b) Out of the revenues that may be received in excess of 118-24 those required for the purposes specified in Subsection (a), the 118-25 board may, in its discretion: 118-26 (1) establish a reasonable depreciation and emergency 119-1 fund; 119-2 (2) retire, by purchase and cancellation or 119-3 redemption, bonds issued under this chapter; or 119-4 (3) apply the excess revenues to any corporate 119-5 purpose. 119-6 (c) The rates and charges of the authority may not be in 119-7 excess of what may be necessary to fulfill the obligations imposed 119-8 on the authority by this chapter. Nothing in this section shall be 119-9 construed as depriving the state of its power to regulate and 119-10 control fees or charges to be collected for the use of water, water 119-11 connections, power, electric energy, or other service; provided, 119-12 however, that the state pledges to and agrees with the purchasers 119-13 and successive holders of the bonds issued under this chapter that 119-14 the state will not limit or alter the power vested in the authority 119-15 by this chapter to establish and collect such fees and charges as 119-16 will produce revenues sufficient to pay the items specified in 119-17 Subsection (a) or in any way impair the rights or remedies of the 119-18 holders of the bonds, or of any person in their behalf, until the 119-19 bonds, together with the interest on the bonds, and the interest on 119-20 unpaid installments of interest and all costs and expenses in 119-21 connection with any action or proceedings by or on behalf of the 119-22 bondholders and all other obligations of the authority in 119-23 connection with the bonds are fully met and discharged. 119-24 Sec. 254.012. PAYMENT OF DEBTS. Each indebtedness, 119-25 liability, or obligation of the authority for the payment of money, 119-26 however entered into or incurred and whether arising from contract, 120-1 implied contract, or otherwise, shall be payable solely: 120-2 (1) out of the revenues received by the authority with 120-3 respect to its properties, subject to any prior lien on the 120-4 revenues conferred by any resolution previously adopted authorizing 120-5 the issuance of bonds as provided in this chapter; or 120-6 (2) if the board so determines, out of the proceeds of 120-7 the sale by the authority of bonds payable solely from revenues. 120-8 Sec. 254.013. ISSUANCE OF BONDS. (a) The authority may 120-9 issue bonds as provided by this section for any corporate purpose, 120-10 not to exceed $500,000 in aggregate principal amount. Any 120-11 additional amount of bonds must be authorized by an act of the 120-12 legislature. 120-13 (b) Bonds may be: 120-14 (1) sold for cash, at public or private sale, at such 120-15 price or prices as the board determines, provided that the interest 120-16 cost of the money received for the bonds, computed to maturity in 120-17 accordance with standard bond tables in general use by banks and 120-18 insurance companies, does not exceed six percent per year; or 120-19 (2) issued on such terms as the board determines in 120-20 exchange for property of any kind, real, personal, or mixed, or any 120-21 interest in property, that the board determines necessary or 120-22 convenient for any corporate purpose; or 120-23 (3) issued in exchange for like principal amounts of 120-24 other obligations of the authority, matured or unmatured. 120-25 (c) The proceeds of the sale of bonds shall be deposited in 120-26 a bank or banks or trust company or trust companies and shall be 121-1 paid out pursuant to the terms and conditions agreed on between the 121-2 authority and the purchasers of the bonds. 121-3 (d) Bonds must be authorized by a resolution of the board 121-4 that is concurred in by at least five members. Bonds must bear 121-5 such date or dates; mature at such time or times; bear interest at 121-6 such rate or rates, not exceeding six percent per year, payable 121-7 annually or semiannually; be in such denominations; be in such 121-8 form, either coupon or registered; carry such registration 121-9 privileges as to principal only or as to both principal and 121-10 interest and as to exchange of coupon bonds for registered bonds, 121-11 or vice versa, and exchange of bonds of one denomination for bonds 121-12 of other denominations; be executed in such manner; and be payable 121-13 at such place or places within or outside the state, as the 121-14 resolution provides. 121-15 (e) A resolution authorizing bonds may contain provisions, 121-16 which shall be part of the contract between the authority and the 121-17 purchasers and successive holders of the bonds: 121-18 (1) reserving the right to redeem the bonds at such 121-19 time or times, in such amounts, and at such prices, not exceeding 121-20 105 percent of the principal amount of the bonds plus accrued 121-21 interest, as may be provided in the resolution; 121-22 (2) providing for the setting aside of sinking funds 121-23 or reserve funds and the regulation and disposition of the funds; 121-24 (3) pledging, to secure the payment of the principal 121-25 of and interest on the bonds and of the sinking fund or reserve 121-26 fund payments agreed to be made with respect to the bonds, all or 122-1 any part of the gross or net revenues received by the authority 122-2 with respect to the property, real, personal, or mixed, to be 122-3 acquired or constructed with the bonds or the proceeds of the 122-4 bonds, or all or part of the gross or net revenues received by the 122-5 authority from any source; 122-6 (4) prescribing the purposes to which the bonds or any 122-7 bonds later issued, or the proceeds of the bonds, may be applied; 122-8 (5) agreeing to set and collect rates and charges 122-9 sufficient to produce revenues adequate to pay the items specified 122-10 in Section 254.011(a) and prescribing the use and disposition of 122-11 all revenues; 122-12 (6) prescribing limitations on the issuance of 122-13 additional bonds and on the agreements that may be made with the 122-14 purchasers and successive holders of such bonds; 122-15 (7) relating to the construction, extension, 122-16 improvement, reconstruction, operation, maintenance, and repair of 122-17 the properties of the authority and the carrying of insurance on 122-18 all or any part of the properties covering loss or damage or loss 122-19 of use and occupancy resulting from specified risks; 122-20 (8) fixing the procedure, if any, by which, if the 122-21 authority so desires, the terms of any contract with the holders of 122-22 the bonds may be amended or abrogated, the amount of the bonds 122-23 whose holders must consent to the amendment or abrogation, and the 122-24 manner in which such consent may be given; 122-25 (9) providing for the execution and delivery by the 122-26 authority to a bank or trust company authorized by law to accept 123-1 trusts, or to the United States or any officer or agency of the 123-2 United States, of indentures and agreements for the benefit of the 123-3 holders of the bonds setting forth all of the agreements authorized 123-4 by this chapter to be made with or for the benefit of the holders 123-5 of the bonds and such other provisions as may be customary in such 123-6 indentures or agreements; and 123-7 (10) making such other provisions not inconsistent 123-8 with the provisions of this chapter as the board may approve. 123-9 Sec. 254.014. DEFAULT PROCEDURES. (a) A resolution 123-10 authorizing the issuance of bonds and any indenture or agreement 123-11 entered into pursuant to the resolution may include provisions 123-12 regarding a default on the: 123-13 (1) payment of the interest on any bonds as the 123-14 interest becomes due and payable; 123-15 (2) payment of the principal of any bonds as they 123-16 become due and payable, whether at maturity, by call for 123-17 redemption, or otherwise; or 123-18 (3) performance of an agreement made with the 123-19 purchasers or successive holders of any bonds. 123-20 (b) If a default described by Subsection (a) has occurred 123-21 and has continued for a period, if any, prescribed by the 123-22 resolution authorizing the issuance of the bonds, the trustee under 123-23 the indenture or indentures entered into with respect to the bonds 123-24 authorized by the resolution, or, if there is no indenture, a 123-25 trustee appointed in the manner provided in the resolution by the 123-26 holders of 25 percent in aggregate principal amount of the bonds 124-1 authorized by the resolution and then outstanding, may, and on the 124-2 written request of the holders of 25 percent in aggregate principal 124-3 amount of the bonds authorized by the resolution and then 124-4 outstanding shall, in the trustee's own name but for the equal and 124-5 proportionate benefit of the holders of all of the bonds, and with 124-6 or without having possession of the bonds: 124-7 (1) by mandamus or other suit, action, or proceeding 124-8 at law or in equity, enforce all rights of the holders of the 124-9 bonds; 124-10 (2) bring suit on the bonds or the appurtenant 124-11 coupons; 124-12 (3) by action or suit in equity, require the authority 124-13 to account as if it were the trustee of an express trust for the 124-14 bondholders; 124-15 (4) by action or suit in equity, enjoin any acts or 124-16 things which may be unlawful or in violation of the rights of the 124-17 holders of the bonds; or 124-18 (5) after such notice to the authority as the 124-19 resolution may provide, declare the principal of all the bonds due 124-20 and payable, and if all defaults have been made good, then with the 124-21 written consent of the holders of 25 percent in aggregate principal 124-22 amount of the bonds then outstanding, annul the declaration and its 124-23 consequences; provided, however, that the holders of more than a 124-24 majority in principal amount of the bonds authorized by the 124-25 resolution and then outstanding shall, by written instrument 124-26 delivered to the trustee, have the right to direct and control any 125-1 and all action taken or to be taken by the trustee under this 125-2 section. 125-3 (c) A resolution, indenture, or agreement relating to bonds 125-4 may provide that in a suit, action, or proceeding under this 125-5 section the trustee, whether or not all of the bonds have been 125-6 declared due and payable and with or without possession of any of 125-7 the bonds, shall be entitled as of right to the appointment of a 125-8 receiver who may enter and take possession of all or part of the 125-9 properties of the authority and operate and maintain the properties 125-10 and set, collect, and receive rates and charges sufficient to 125-11 provide revenues adequate to pay the items set forth in Section 125-12 254.011(a) and the costs and disbursements of the suit, action, or 125-13 proceeding and may apply such revenues in conformity with the 125-14 provisions of this chapter and the resolution authorizing the 125-15 bonds. 125-16 (d) In a suit, action, or proceeding by a trustee under this 125-17 section, the reasonable fees, counsel fees, and expenses of the 125-18 trustee and of the receiver or receivers, if any, shall constitute 125-19 taxable disbursements, and all costs and disbursements allowed by 125-20 the court shall be a first charge on any revenues pledged to secure 125-21 the payment of the bonds. 125-22 (e) Subject to the provisions of the constitution, the 125-23 courts of Coleman County shall have jurisdiction of any suit, 125-24 action, or proceeding under this section by a trustee on behalf of 125-25 the bondholders and of all property involved in the suit, action, 125-26 or proceeding. 126-1 (f) In addition to the powers specifically provided by this 126-2 section, the trustee shall have all powers necessary or appropriate 126-3 for the exercise of the powers specifically provided or incident to 126-4 the general representation of the bondholders in the enforcement of 126-5 their rights. 126-6 Sec. 254.015. BOND APPROVAL AND REGISTRATION. (a) Before 126-7 any bonds may be sold by the authority, a certified copy of the 126-8 proceedings for the issuance of the bonds, including the form of 126-9 the bonds, together with any other information that the attorney 126-10 general may require, shall be submitted to the attorney general, 126-11 and if the attorney general finds that the bonds have been issued 126-12 in accordance with law, the attorney general shall approve the 126-13 bonds and execute a certificate to that effect, which shall be 126-14 filed in the office of the comptroller and be recorded in a record 126-15 kept for that purpose. The comptroller shall register the bonds if 126-16 the attorney general has filed with the comptroller the certificate 126-17 approving the bonds and the proceedings for the issuance of the 126-18 bonds as provided in this section. No bonds shall be issued until 126-19 the bonds have been registered by the comptroller. 126-20 (b) Bonds approved by the attorney general, registered by 126-21 the comptroller, and issued in accordance with the proceedings so 126-22 approved are valid and binding obligations of the authority and are 126-23 incontestable for any cause from and after the time of 126-24 registration. 126-25 Sec. 254.016. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued 126-26 by the authority under the provisions of this chapter are 127-1 negotiable instruments within the meaning of the laws of this 127-2 state. 127-3 Sec. 254.017. ADDITIONAL POWERS RELATING TO CONTRACTS, 127-4 RULES, AND REGULATIONS. The authority may, but without intending 127-5 by this provision to limit any powers of the authority as granted 127-6 to it by this chapter, enter into and carry out contracts or 127-7 establish or comply with rules and regulations concerning labor and 127-8 materials and other related matters, in connection with any 127-9 project, as the authority deems desirable or as requested by the 127-10 United States, or any corporation or agency created, designated, or 127-11 established by the United States that may assist in the financing 127-12 of the project. 127-13 Sec. 254.018. CONTRACTS FOR WATER OR SOIL CONSERVATION 127-14 PROJECTS. (a) The authority may enter into contracts with 127-15 individuals, firms, associations, or corporations for the 127-16 construction of water or soil conservation projects on property 127-17 owned or controlled by such individuals, firms, associations, or 127-18 corporations and may use machinery, equipment, or facilities owned 127-19 or controlled by the authority for that purpose. The individual, 127-20 association, firm, or corporation shall pay a reasonable charge to 127-21 the authority for construction carried out under this subsection. 127-22 The authority is not liable for damages to any person or property 127-23 because of projects contracted for and constructed under this 127-24 subsection and is not liable for the maintenance or upkeep of such 127-25 projects. 127-26 (b) The authority may enter into contracts with the 128-1 governing boards of duly constituted governmental agencies within 128-2 or outside the boundaries of the authority for the purpose of 128-3 supervising the construction of water or soil conservation projects 128-4 on property located within the control or within the limits of the 128-5 other governmental agencies. The other governmental agencies shall 128-6 pay to the authority a reasonable charge for construction carried 128-7 out under this subsection. The authority is not liable for damages 128-8 to any person or property because of projects contracted for and 128-9 constructed under this subsection and is not liable for the 128-10 maintenance or upkeep of such projects. 128-11 Sec. 254.019. REDEMPTION OF BONDS. The authority may out of 128-12 any funds available for the purpose purchase bonds issued by it at 128-13 a price not exceeding the redemption price applicable at the time 128-14 of the purchase or, if the bonds are not redeemable, at a price not 128-15 exceeding the principal amount of the bonds plus accrued interest. 128-16 All bonds so purchased shall be canceled and no bonds shall ever be 128-17 issued in lieu of the canceled bonds. 128-18 Sec. 254.020. DISPOSITION OF PROPERTY. (a) Nothing in this 128-19 chapter shall be construed as authorizing the authority, and the 128-20 authority is not authorized, to mortgage or otherwise encumber any 128-21 of its property of any kind, real, personal, or mixed, or any 128-22 interest in property, or to acquire any property or interest 128-23 subject to a mortgage or conditional sale, provided that this 128-24 section shall not be construed as preventing the pledging of the 128-25 revenues of the authority as authorized by this chapter. 128-26 (b) Nothing in this chapter shall be construed as 129-1 authorizing the sale, lease, or other disposition of any property 129-2 or interest by the authority or by any receiver of any of its 129-3 properties or through any court proceeding or otherwise; provided, 129-4 however, that the authority may sell for cash any property or 129-5 interest with an aggregate value not exceeding $50,000 in any one 129-6 year if the board, by the affirmative vote of six of its members, 129-7 has determined that the property or interest is not necessary or 129-8 convenient to the business of the authority and has approved the 129-9 terms of the sale. Except by sale as expressly authorized in this 129-10 section, no such property or interest, except personal property, 129-11 shall ever come into the ownership or control, directly or 129-12 indirectly, of any person, firm, or corporation other than a public 129-13 authority created under the laws of the state. 129-14 (c) All property of the authority except personal property 129-15 shall be at all times exempted from forced sale, and nothing in 129-16 this chapter shall be construed to authorize the sale of any of the 129-17 property of the authority, except personal property, under any 129-18 judgment rendered in any suit, and such sales are prohibited. 129-19 Sec. 254.021. PUBLIC ACCESS. (a) The authority may not 129-20 prohibit the free public use of its lands for recreation purposes 129-21 and for hunting and fishing except as, in the opinion of the board, 129-22 such use would interfere with the proper conduct and maintenance of 129-23 the authority's property. 129-24 (b) All public rights-of-way traversing the areas adjacent 129-25 to the areas to be flooded by the impounded waters shall remain 129-26 open as a way of free public passage to and from the lakes created. 130-1 A charge may be made to the public for the right to engage in 130-2 hunting, fishing, or boating on the lakes. 130-3 (c) If any citizen of the state notifies the attorney 130-4 general that this section has not been complied with, the attorney 130-5 general shall institute the proper legal proceedings to require the 130-6 authority or its successor to comply with the provisions of this 130-7 section. 130-8 (d) If any of the land owned by the authority bordering the 130-9 lakes to be created under the authority of this chapter is sold by 130-10 the authority, the authority shall retain in each tract a strip 20 130-11 feet wide abutting the high-water line of the lake for the purpose 130-12 of passage and use by the public for public sports and amusements; 130-13 provided, however, that this subsection does not apply to any sales 130-14 of land by the authority to any state or federal agency to be used 130-15 for game or fish sanctuaries or preserves or for propagation 130-16 purposes. 130-17 Sec. 254.022. BONDS EXEMPT FROM TAXATION. Bonds and the 130-18 interest on bonds issued under the provisions of this chapter are 130-19 exempt from taxation, except inheritance taxes, by the state or by 130-20 any municipal corporation, county, or other political subdivision 130-21 or taxing district of the state. 130-22 Sec. 254.023. SOURCE OF AUTHORITY. This chapter, without 130-23 reference to other statutory provisions of the state, constitutes 130-24 full authority for the authorization and issuance of bonds under 130-25 this chapter, and no other act or law with regard to the 130-26 authorization or issuance of obligations or the deposit of the 131-1 proceeds of such obligations or in any way impeding or restricting 131-2 the carrying out of the acts authorized by this chapter to be done 131-3 shall be construed as applying to any proceedings taken or acts 131-4 done under this chapter. 131-5 Sec. 254.024. CONSTRUCTION. This chapter and all of its 131-6 terms and provisions shall be liberally construed to effectuate the 131-7 purposes set forth in this chapter. 131-8 CHAPTER 255. COLORADO RIVER MUNICIPAL WATER DISTRICT 131-9 Sec. 255.001. CREATION. A district to be known as the 131-10 "Colorado River Municipal Water District" is created. The district 131-11 is a governmental agency and a body politic and corporate. 131-12 (b) The district is created under and is essential to 131-13 accomplish the purposes of Section 59, Article XVI, Texas 131-14 Constitution. 131-15 Sec. 255.002. DEFINITIONS. In this chapter: 131-16 (1) "Board" means the board of directors of the 131-17 district. 131-18 (2) "Director" means a member of the board. 131-19 (3) "District" means the Colorado River Municipal 131-20 Water District. 131-21 Sec. 255.003. TERRITORY. (a) The district includes all of 131-22 the territory contained within the boundaries of the cities of Big 131-23 Spring, in Howard County, Odessa, in Ector County, and Snyder, in 131-24 Scurry County, on January 1, 1981; provided, however, that no 131-25 defect in the definition of the boundaries of any of those cities 131-26 shall affect the validity of the district or any of its powers or 132-1 duties. All territory within the boundaries of the district will 132-2 benefit from the present and contemplated improvements, works, and 132-3 facilities of the district. 132-4 (b) Territory annexed after January 1, 1981, to any city 132-5 described in Subsection (a) or to any city annexed to the district 132-6 under Section 255.006 may be annexed to the district in the manner 132-7 provided in Subsections (c)-(f). 132-8 (c) At any time after final passage of an ordinance or 132-9 resolution annexing territory to the city, the board may issue a 132-10 notice of hearing on the question of annexing that territory to the 132-11 district. The notice shall be sufficient if it states the date and 132-12 place of the hearing and a description of the area proposed to be 132-13 annexed, but in lieu of that description, the notice may make 132-14 reference to the annexation ordinance or resolution of the city. 132-15 (d) The notice shall be published three times in a newspaper 132-16 with general circulation in the city not less than 30 days before 132-17 the date set for the hearing. 132-18 (e) If, pursuant to the hearing, the board finds that the 132-19 territory proposed to be annexed will benefit from the present or 132-20 contemplated improvements, works, or facilities of the district, 132-21 the board shall adopt a resolution annexing the territory to the 132-22 district. 132-23 (f) After the territory is added to the district, the board 132-24 may call an election for the entire district as enlarged for the 132-25 purpose of determining whether the entire district as enlarged will 132-26 assume any tax-supported bonds of the district then outstanding and 133-1 previously voted but not yet sold and whether an ad valorem tax 133-2 will be levied on all taxable property within the district as 133-3 enlarged for the payment of the bonds. The election shall be 133-4 called and held and notice given in the same manner as elections 133-5 for the issuance of tax-supported bonds under this chapter. 133-6 Sec. 255.004. BOARD OF DIRECTORS. (a) All powers of the 133-7 district shall be exercised by a board of directors. Except as 133-8 provided in this chapter with reference to cities with a population 133-9 of less than 5,000, four of the directors shall be appointed by a 133-10 majority vote of the governing body of each of the cities described 133-11 in Section 255.003 and any city annexed to the district under 133-12 Section 255.006. In May of each year the governing body of each of 133-13 the cities in Section 255.003 shall appoint two directors for the 133-14 two-year term beginning on June 1 of that year. Each director 133-15 serves for the term of office as provided in this section and until 133-16 a successor is appointed and qualified. A person may not be 133-17 appointed a director unless the person resides in and owns taxable 133-18 property in the city from which the person is appointed. A member 133-19 of the governing body or an employee of a city may not be appointed 133-20 a director. Directors shall subscribe the constitutional oath of 133-21 office, and each director shall give bond for the faithful 133-22 performance of the director's duties in the amount of $5,000, the 133-23 cost of which shall be paid by the district. A majority 133-24 constitutes a quorum. 133-25 (b) Each director is entitled to receive a fee of $50 for 133-26 attending each meeting of the board, provided that not more than 134-1 $100 is paid to any director for meetings held in any one calendar 134-2 month. Each director is also entitled to receive $50 per day 134-3 devoted to the business of the district and to reimbursement for 134-4 actual expenses incurred in attending to district business provided 134-5 that the service and expense are expressly approved by the board. 134-6 Sec. 255.005. OFFICERS; EMPLOYEES; SEAL. The board shall 134-7 elect from among its members a president and a vice president of 134-8 the district and such other officers as in the judgment of the 134-9 board are necessary. The president is the chief executive officer 134-10 of the district and the presiding officer of the board and has the 134-11 same right to vote as any other director. The vice president shall 134-12 perform all duties and exercise all powers conferred by this 134-13 chapter on the president when the president is absent or fails or 134-14 declines to act. The board shall also appoint a secretary and a 134-15 treasurer, who may or may not be members of the board, and it may 134-16 combine those offices. The treasurer shall give bond in an amount 134-17 required by the board, but in no event less than $100,000. The 134-18 bond must be conditioned on the treasurer faithfully accounting for 134-19 all money that comes into that officer's custody as treasurer of 134-20 the district. The board shall appoint all necessary engineers, 134-21 attorneys, and other employees. The board shall adopt a seal for 134-22 the district. 134-23 Sec. 255.006. ANNEXATION OF TERRITORY. (a) Other territory 134-24 may be annexed to the district in the manner provided by this 134-25 section. 134-26 (b) A petition seeking annexation must be filed with the 135-1 board. The petition must be signed by 50 or a majority of the 135-2 qualified voters of the territory to be annexed who own taxable 135-3 property in the territory to be annexed and who have duly rendered 135-4 the property to the city or county for taxation. The petition must 135-5 describe the territory to be annexed by metes and bounds or 135-6 otherwise unless the territory is the same as that contained in a 135-7 city or town, in which case it is sufficient to state that the 135-8 territory to be annexed is that contained within the city or town. 135-9 (c) If the board finds that the petition complies with and 135-10 is signed by the number of qualified persons required by Subsection 135-11 (b), that the annexation would be in the interest of the territory 135-12 to be annexed and the district, and that the district will be able 135-13 to supply water to the territory to be annexed, the board shall 135-14 adopt a resolution stating the conditions, if any, under which the 135-15 territory may be annexed and requesting the commission to annex the 135-16 territory to the district. A certified copy of the resolution and 135-17 of the petition must be filed with the commission. 135-18 (d) The commission shall adopt a resolution declaring its 135-19 intention to call an election in the territory to be annexed for 135-20 the purpose of submitting the proposition of whether the territory 135-21 shall be annexed to the district and shall set a time and place 135-22 when and where a hearing will be held by the commission on the 135-23 question of whether the territory to be annexed will benefit from 135-24 the improvements, works, and facilities then owned or operated or 135-25 contemplated to be owned or operated by the district. Railroad 135-26 right-of-way that is not situated within the defined limits of an 136-1 incorporated city or town will not benefit from improvements, 136-2 works, and facilities that the district is authorized to construct. 136-3 No railroad right-of-way may be annexed to the district except a 136-4 right-of-way that is contained within the limits of an incorporated 136-5 city or town annexed to the district. 136-6 (e) Notice of the adoption of the resolution stating the 136-7 time and place of the hearing, addressed to the citizens and owners 136-8 of property in the territory to be annexed, shall be published one 136-9 time in a newspaper designated by the commission at least 10 days 136-10 before the date of the hearing. The notice must describe the 136-11 territory to be annexed in the same manner as required or permitted 136-12 for the petition. 136-13 (f) All interested persons may appear at the hearing and 136-14 offer evidence for or against the intended annexation. The hearing 136-15 may proceed in the order and under rules prescribed by the 136-16 commission and may be recessed from time to time. If, at the 136-17 conclusion of the hearing, the commission finds that all the land 136-18 in the territory to be annexed will benefit from the present or 136-19 contemplated improvements, works, or facilities of the district, 136-20 the commission shall adopt a resolution calling an election in the 136-21 territory to be annexed stating the date of and the place or places 136-22 of holding the election and appointing a presiding judge for each 136-23 voting place, who shall appoint the necessary assistant judges and 136-24 clerks to assist in holding the election. 136-25 (g) Notice of the election, stating the date and places for 136-26 holding the election, the proposition to be voted on, and the 137-1 conditions under which the territory may be annexed, or making 137-2 reference to the resolution of the board for that purpose, shall be 137-3 published one time in a newspaper designated by the commission at 137-4 least 10 days before the day set for the election. 137-5 (h) Only qualified electors who reside in the territory to 137-6 be annexed may vote in the election. Returns of the election 137-7 shall be made to the commission. 137-8 (i) The commission shall canvass the returns of the election 137-9 and adopt a resolution declaring the results. If the resolution 137-10 shows that a majority of the votes cast are in favor of annexation, 137-11 the commission shall enter an order annexing the territory to the 137-12 district, and the annexation shall thereafter be incontestable 137-13 except in the manner and within the time for contesting elections 137-14 under the Election Code. A certified copy of the order shall be 137-15 recorded in the deed records of the county in which the territory 137-16 is situated. 137-17 (j) In calling the election on the proposition for 137-18 annexation of territory, the commission may include as a part of 137-19 the same proposition a proposition for the: 137-20 (1) assumption of that territory's part of the 137-21 tax-supported bonds of the district then outstanding and those 137-22 voted but not yet sold; and 137-23 (2) levy of an ad valorem tax on taxable property in 137-24 the territory to be annexed along with the tax in the rest of the 137-25 district for the payment of the bonds. 137-26 (k) After territory is added to the district, the board may 138-1 call an election over the entire district for the purpose of 138-2 determining whether the entire district as enlarged shall assume 138-3 the tax-supported bonds then outstanding and those voted but not 138-4 yet sold and whether an ad valorem tax shall be levied on all 138-5 taxable property within the district as enlarged for the payment of 138-6 the bonds, unless such proposition is voted along with the 138-7 annexation election and becomes lawfully binding on the territory 138-8 annexed. The election shall be called and held in the same manner 138-9 as elections for the issuance of bonds as provided in this chapter. 138-10 (l) If no newspaper is published in the territory to be 138-11 annexed, the notices shall be posted in three public places in that 138-12 territory. 138-13 Sec. 255.007. APPOINTMENT OF DIRECTORS BY CITIES IN ANNEXED 138-14 TERRITORY. (a) If the territory of a city with a population of 138-15 more than 5,000 is annexed to the district, the governing body of 138-16 the city shall appoint two directors for the term ending the 138-17 following May 31 and two directors for the term ending one year 138-18 after the following May 31 and in May of each year shall appoint 138-19 two directors for a two-year term as provided in this chapter for 138-20 cities included in the district at the time of the creation of the 138-21 district. 138-22 (b) If the territory of a city with a population of 5,000 or 138-23 less is annexed to the district, the governing body of the city 138-24 shall appoint one director whose term expires one year after the 138-25 following May 31, one director for the term ending one year after 138-26 the following May 31, and in May of each year shall appoint one 139-1 director for a two-year term. 139-2 (c) If the population of a city that was subject to 139-3 Subsection (b) at the time of its annexation later has a population 139-4 that exceeds 5,000, the city shall be entitled to four directors to 139-5 be appointed as provided in Subsection (a). 139-6 Sec. 255.008. AUTHORITY TO IMPOUND AND TRANSPORT WATER; PLAN 139-7 APPROVAL BY COMMISSION. The district may impound the storm waters 139-8 and floodwaters and the unappropriated flow of the Colorado River 139-9 and its tributaries by the construction of a dam or dams across the 139-10 river and tributaries or otherwise by complying with the applicable 139-11 provisions of this code and may develop or otherwise acquire 139-12 underground sources of water. The district may construct or 139-13 otherwise acquire all works, plants, and other facilities necessary 139-14 or useful for the purpose of processing such water and transporting 139-15 it to cities and others for municipal and domestic industrial 139-16 purposes. No dam or other works for the impounding of water from 139-17 the river may be constructed until the plan for that purpose is 139-18 approved by the commission. 139-19 Sec. 255.009. ADDITIONAL POWERS. (a) The district may 139-20 construct, finance, or otherwise provide any kind or type of water 139-21 pollution control facilities, waste disposal facilities, or air 139-22 pollution control facilities at any place or places within the area 139-23 of the watershed (river basin) of the Colorado River that lies west 139-24 of the east boundary line of Coleman County and at any place or 139-25 places in Reeves, Loving, Culberson, Ector, Ward, and Winkler 139-26 counties. Within that area, the district also may exercise all 140-1 powers granted to a district or a river authority operating under 140-2 Section 59, Article XVI, Texas Constitution, Chapter 383, Health 140-3 and Safety Code, Chapter 30, and any other general law relating to 140-4 those specific powers and facilities. If the district creates a 140-5 nonprofit corporation to act on its behalf under the Development 140-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 140-7 Statutes), the corporation may exercise any of its powers with 140-8 respect to projects within the area described in this subsection. 140-9 (b) As used in this section, "person" means any individual, 140-10 partnership, corporation, or other private entity and any public 140-11 agency, including an authority, district, city, town, or other 140-12 political subdivision, joint board, or other public agency created 140-13 and operating under the laws of this state. The district and all 140-14 persons may contract, on terms and conditions on which the parties 140-15 may agree, with respect to any power, function, or duty of the 140-16 district, including those additionally granted in this section, and 140-17 the district and all persons may execute appropriate documents and 140-18 instruments in connection with the contracts. The district may 140-19 issue bonds, in the manner provided in Section 255.013, with 140-20 respect to any of its powers, including the powers granted in this 140-21 section, and for the purpose of providing funds to enable the 140-22 district to pay for the costs of engineering design and studies, 140-23 surveying, title research, appraisals, options on real or personal 140-24 property, and other related activities in connection with planning 140-25 and implementing proposed projects or improvements and also for the 140-26 purpose of providing funds to operate and maintain any facilities. 141-1 The district may invest any of its funds, including bond proceeds, 141-2 in any manner or securities as determined by the board. 141-3 (c) Notwithstanding any other provisions of this chapter, 141-4 and in addition to all other powers granted by this chapter or by 141-5 any other provision of law, the district may: 141-6 (1) enter into loan agreements, leases, or installment 141-7 sales agreements; and 141-8 (2) acquire, purchase, construct, own, operate, 141-9 maintain, repair, improve, or extend, and loan, lease, sell, or 141-10 otherwise dispose of, on terms and conditions, including loan 141-11 payments, rentals, sale price, or installment sale payments, as the 141-12 parties may agree, at any place or location within the area 141-13 described in Subsection (a), or at any other place or location 141-14 outside the area with respect to facilities that are designed 141-15 primarily to serve inhabitants within that area, all works, 141-16 improvements, facilities, plants, buildings, structures, equipment, 141-17 and appliances, real and personal property or any interest in real 141-18 or personal property, and all money or bond proceeds that are 141-19 incident, helpful, or necessary: 141-20 (A) to provide for the control, storage, 141-21 preservation, transmission, treatment, distribution, and use of 141-22 storm water, floodwater, and the water of rivers and streams for 141-23 municipal, domestic, electric energy or power, industrial, 141-24 irrigation, oil flooding, mining, recreation, agricultural, 141-25 commercial, and all other beneficial uses and purposes; 141-26 (B) to collect, transport, process, treat, 142-1 dispose of, and control waste, including municipal, domestic, 142-2 industrial, agricultural, recreational, and other waste, whether in 142-3 fluid, solid, or composite state and to control, abate, or reduce 142-4 all types of pollution, including air pollution and water 142-5 pollution; 142-6 (C) to reclaim and provide drainage and drainage 142-7 systems for land; 142-8 (D) to establish or otherwise provide for public 142-9 parks and recreation facilities; or 142-10 (E) to facilitate the carrying out of any power, 142-11 duty, or function of the district. 142-12 (d) The district is considered a district and constitutes a 142-13 river authority under Chapter 383, Health and Safety Code, and 142-14 Chapter 30, and those chapters are applicable to the district, 142-15 except to the extent of any conflict with this chapter, in which 142-16 case this chapter prevails over the provisions of Chapter 383, 142-17 Health and Safety Code, and Chapter 30. 142-18 (e) Any person may contract with the district in any manner 142-19 authorized by this chapter, Chapter 383, Health and Safety Code, or 142-20 Chapter 30 with respect to water, waste, pollution control, or any 142-21 other facilities or services provided by the district. A public 142-22 agency additionally may enter into and execute a contract with the 142-23 district and may determine, agree, and pledge that all or any part 142-24 of its payments under the contract shall be payable from the source 142-25 described in Section 30.030(c), subject only to the authorization 142-26 of the contract, pledge, and payments by a two-thirds vote of the 143-1 governing body of the public agency. Public agencies may use and 143-2 pledge any other available revenues or resources for the payment of 143-3 amounts due under the contracts, as an additional source or sources 143-4 of payment or as the sole source or sources of payment, and may 143-5 covenant with respect to those revenues to assure the availability 143-6 of the revenues when required. If bonds issued by the district 143-7 recite that they are secured by a pledge of revenues from any 143-8 contract, a copy of the contract and the proceedings relating to 143-9 the contract shall be submitted to the attorney general along with 143-10 the bonds that must be submitted under Section 255.013. If the 143-11 attorney general finds that the bonds are authorized and the 143-12 contract has been made and entered into in accordance with law, the 143-13 attorney general shall approve the bonds and the contract. After 143-14 approval, the bonds and the contract are incontestable in any court 143-15 or other forum for any reason and are valid and binding in 143-16 accordance with their terms and provisions for all purposes. 143-17 (f) Each public agency: 143-18 (1) may set, charge, and collect fees, rates, charges, 143-19 rentals, and other amounts for services or facilities provided by a 143-20 utility operated by the agency, or provided under or in connection 143-21 with a contract with the district, from its inhabitants or from 143-22 users or beneficiaries of the utility, services, or facilities, 143-23 including specifically water charges, sewage charges, waste 143-24 disposal system fees and charges, including garbage collection or 143-25 handling fees, and other fees or charges; 143-26 (2) may use and pledge those amounts to make payments 144-1 to the district that are required under the contract; 144-2 (3) may covenant to do so in amounts sufficient to 144-3 make all or any part of those payments to the district when due; 144-4 and 144-5 (4) if the parties agree in the contract, shall have 144-6 the payments constitute an expense of operation of any facilities 144-7 or utility operated by the public agency provided that an agreement 144-8 may not be made that would violate the United States Constitution 144-9 or the Texas Constitution. 144-10 (g) This section is wholly sufficient authority for the 144-11 exercise of the powers, the issuance of bonds, the execution of 144-12 contracts, and the performance of the other acts and procedures 144-13 authorized in this section, by the district and all persons, 144-14 including specifically public agencies, without reference to any 144-15 other law, or restrictions or limitations contained in any other 144-16 law, except as specifically provided in this section. To the 144-17 extent of any conflict or inconsistency between this section and 144-18 any other law, including a home-rule city charter, this section 144-19 shall prevail and control; provided, however, that the district and 144-20 all persons, including public agencies, may use any other law not 144-21 in conflict with this section to the extent convenient or necessary 144-22 to carry out any power or authority, express or implied, granted by 144-23 this section. 144-24 (h) This section does not compel any person, including any 144-25 public agency, to secure water, sewer service, or any other 144-26 service from the district, except under contracts voluntarily 145-1 executed. 145-2 Sec. 255.010. CONTROL OF POLLUTION AND SALTWATER. The 145-3 district may: 145-4 (1) provide for the study, correction, prevention, and 145-5 control of both artificial and natural pollution of the Colorado 145-6 River and its tributaries, upstream from the north boundary line of 145-7 Coke County, Texas, and adopt and promulgate all reasonable 145-8 regulations with regard to such pollution, both artificial and 145-9 natural, to secure, maintain, and preserve the purity, usefulness, 145-10 and sanitary condition of the water in and to flow into the 145-11 Colorado River and its tributaries; 145-12 (2) eliminate oil field brine pollution of the 145-13 Colorado River and its tributaries, upstream from the north 145-14 boundary line of Coke County, Texas, by capping and plugging 145-15 abandoned oil wells, covering saltwater pits with earth, 145-16 constructing channel dams to collect polluted low flows of the 145-17 Colorado River and its tributaries, developing saltwater disposal 145-18 wells, and by other practical means of eliminating oil field brine 145-19 pollution of the Colorado River and its tributaries; and 145-20 (3) develop, drill for, or otherwise acquire sources 145-21 of underground and surface saltwater and sell salt well water, 145-22 saltwater collected by channel dams, fresh water from the 145-23 district's reservoirs and wells, and commingled saltwater and fresh 145-24 water for mining, oil field flooding and repressuring, industrial, 145-25 manufacturing, or other purposes. 145-26 Sec. 255.011. EMINENT DOMAIN. For the purpose of carrying 146-1 out any power or authority conferred by this chapter the district 146-2 may acquire land and easements within and outside the district, 146-3 including land above the probable high-water line around the 146-4 reservoirs, by condemnation in the manner provided by Chapter 21, 146-5 Property Code. The amount of and character of interest in land and 146-6 easements thus to be acquired shall be determined by the board. 146-7 Sec. 255.012. CONTRACTS; BIDDING. A construction contract 146-8 for the purchase of material, equipment, or supplies requiring an 146-9 expenditure of more than $25,000 may be made only after publication 146-10 of a notice to bidders once each week for two weeks before the 146-11 contract is awarded. The notice is sufficient if it states the 146-12 time and place when and where the bids will be opened and the 146-13 general nature of the work to be done or the material, equipment, 146-14 or supplies to be purchased and states where and the terms on which 146-15 copies of the plans and specifications may be obtained. The 146-16 publication shall be in a newspaper published in the district and 146-17 designated by the board. 146-18 Sec. 255.013. ISSUANCE OF BONDS. (a) For the purpose of 146-19 providing a source of water supply for cities and other users for 146-20 municipal, domestic, and industrial purposes as authorized by this 146-21 chapter and for the purpose of carrying out any other power or 146-22 authority conferred by this chapter, the district may issue 146-23 negotiable bonds to be payable from such revenues of the district 146-24 as are pledged by resolution of the board. 146-25 (b) Bonds must be authorized by resolution of the board and 146-26 must be issued in the name of the district, signed by the president 147-1 or vice president, and attested by the secretary and must have the 147-2 seal of the district impressed on them. The bonds must mature 147-3 serially or otherwise in not to exceed 40 years and may be sold at 147-4 a price and under terms determined by the board to be the most 147-5 advantageous reasonably obtainable, provided that the interest cost 147-6 to the district, calculated by use of standard bond interest tables 147-7 currently in use by insurance companies and investment houses, does 147-8 not exceed six percent per year. Within the discretion of the 147-9 board, bonds may be made callable prior to maturity at such times 147-10 and prices as may be prescribed in the resolution authorizing the 147-11 bonds and may be made registrable as to principal or as to both 147-12 principal and interest. 147-13 (c) Bonds may be issued in more than one series and from 147-14 time to time as required for carrying out the purposes of this 147-15 chapter. 147-16 (d) Bonds may be secured by a pledge of all or part of the 147-17 net revenues of the district, of the net revenues of any one or 147-18 more contracts made before or after the bonds are issued, or of 147-19 other revenues specified by resolution of the board. Any such 147-20 pledge may reserve the right, under conditions specified in the 147-21 pledge resolution, to issue additional bonds which will be on a 147-22 parity with or subordinate to the bonds being issued. The term 147-23 "net revenues" means the gross revenues of the district after 147-24 deduction of the amount necessary to pay the cost of maintaining 147-25 and operating the district and its properties. 147-26 (e) For the purposes stated in Subsection (a), the district 148-1 may issue bonds payable from ad valorem taxes to be levied on all 148-2 taxable property in the district or issue bonds secured both by and 148-3 payable from such taxes and the revenues of the district. If bonds 148-4 are issued payable wholly or partially from ad valorem taxes, the 148-5 board shall levy a tax sufficient to pay the bonds and the interest 148-6 on the bonds as the bonds and interest become due, but the rate of 148-7 the tax for any year may be set after giving consideration to the 148-8 money received from the pledged revenues that may be available for 148-9 payment of principal and interest to the extent and in the manner 148-10 permitted by the resolution authorizing the issuance of the bonds. 148-11 (f) If bonds payable wholly from revenues are issued, the 148-12 board shall set, and from time to time revise, rates of 148-13 compensation for water sold and services rendered by the district 148-14 that will be sufficient to pay the expense of operating and 148-15 maintaining the facilities of the district and to pay bonds as they 148-16 mature and the interest as it accrues and to maintain the reserve 148-17 and other funds as provided in the resolution authorizing the 148-18 bonds. If bonds payable partially from revenues are issued, the 148-19 board shall set, and from time to time revise, rates of 148-20 compensation for water sold and services rendered by the district 148-21 that will be sufficient to assure compliance with the resolution 148-22 authorizing the bonds. 148-23 (g) The district may set aside from the proceeds from the 148-24 sale of the bonds an amount for the payment of interest expected to 148-25 accrue during construction and for a reserve interest and sinking 148-26 fund, and such provision may be made in the resolution authorizing 149-1 the bonds. Proceeds from the sale of the bonds may also be used 149-2 for the payment of all expenses necessarily incurred in 149-3 accomplishing the purposes for which the district is created. 149-4 (h) In the event of a default or a threatened default in the 149-5 payment of principal of or interest on bonds payable wholly or 149-6 partially from revenues of the district, any court of competent 149-7 jurisdiction may, on petition of the holders of 25 percent of the 149-8 outstanding bonds of the issue in default or threatened with 149-9 default, appoint a receiver with authority to collect and receive 149-10 all income of the district except taxes, employ and discharge 149-11 agents and employees of the district, take charge of the district's 149-12 funds on hand except funds received from taxes, unless commingled, 149-13 and manage the proprietary affairs of the district without consent 149-14 or hindrance by the directors. The receiver may also be authorized 149-15 to sell or make contracts for the sale of water or renew such 149-16 contracts with the approval of the court appointing the receiver. 149-17 The court may vest the receiver with other powers and duties the 149-18 court finds necessary for the protection of the holders of the 149-19 bonds. 149-20 Sec. 255.014. REFUNDING BONDS. (a) The district may issue 149-21 refunding bonds for the purpose of refunding any outstanding bonds 149-22 authorized by this chapter and interest on the bonds. Refunding 149-23 bonds may be issued to refund more than one series of outstanding 149-24 bonds and may combine the pledges for the outstanding bonds for the 149-25 security of the refunding bonds, and refunding bonds may be secured 149-26 by other or additional revenues. 150-1 (b) The provisions of this chapter with reference to the 150-2 issuance of other bonds, their approval by the attorney general, 150-3 and the remedies of the holders shall be applicable to refunding 150-4 bonds. Refunding bonds shall be registered by the comptroller on 150-5 surrender and cancellation of the bonds to be refunded, but in lieu 150-6 thereof, the resolution authorizing the issuance of the refunding 150-7 bonds may provide that the refunding bonds shall be sold and the 150-8 proceeds of the sale deposited in the bank where the original bonds 150-9 are payable, in which case the refunding bonds may be issued in an 150-10 amount sufficient to pay the interest on the original bonds to 150-11 their option date or maturity date, and the comptroller shall 150-12 register the refunding bonds without concurrent surrender and 150-13 cancellation of the original bonds. 150-14 Sec. 255.015. DEED OF TRUST LIEN. Any bonds, including 150-15 refunding bonds, authorized by this chapter that are not payable 150-16 wholly from ad valorem taxes may be additionally secured by a deed 150-17 of trust lien upon physical properties of the district and all 150-18 franchises, easements, water rights and appropriation permits, 150-19 leases, and contracts, and all rights appurtenant to such 150-20 properties, vesting in the trustee power to sell the properties for 150-21 payment of the indebtedness, power to operate the properties, and 150-22 all other powers and authority for the further security of the 150-23 bonds. The deed of trust may contain any provisions prescribed by 150-24 the board for the security of the bonds and the preservation of the 150-25 trust estate and may make provision for amendment or modification 150-26 thereof and the issuance of bonds to replace lost or mutilated 151-1 bonds. A purchaser under a sale under a deed of trust shall be the 151-2 owner of the dam or dams and the other properties and facilities 151-3 purchased and shall have the right to maintain and operate such 151-4 dams, properties, or facilities. 151-5 Sec. 255.016. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION. 151-6 (a) No bonds payable wholly or partially from ad valorem taxes, 151-7 except refunding bonds, may be issued unless the issuance is 151-8 authorized by an election at which only the qualified voters who 151-9 reside in the district may vote and a majority of the votes cast in 151-10 each city contained in the district is in favor of the issuance of 151-11 the bonds. Bonds not payable wholly or partially from ad valorem 151-12 taxes may be issued without an election. 151-13 (b) An election for the authorization of bonds may be called 151-14 by the board without a petition. The resolution calling the 151-15 election must specify the time and places of holding the election, 151-16 the purpose for which the bonds are to be issued, the maximum 151-17 amount of the bonds, the maximum maturity of the bonds, the form of 151-18 the ballot, and the presiding judge for each voting place. The 151-19 presiding judge serving at each voting place shall appoint one 151-20 assistant judge and at least two clerks to assist in holding the 151-21 election. Notice of the election shall be given by publishing a 151-22 substantial copy of the notice in one newspaper published in each 151-23 city contained in the district for two consecutive weeks. The 151-24 first publication must be at least 21 days prior to the date of the 151-25 election. In any city in which no newspaper is published, notice 151-26 must be given by posting a copy of the resolution in three public 152-1 places. 152-2 (c) The returns of the election shall be made to and 152-3 canvassed by the board. 152-4 (d) Elections held under this section are governed by the 152-5 Election Code except as otherwise provided in this chapter. 152-6 Sec. 255.017. EXAMINATION BY ATTORNEY GENERAL. After bonds 152-7 are authorized by the district, the bonds and the record relating 152-8 to their issuance shall be submitted to the attorney general for 152-9 examination as to the validity of the bonds. If the bonds recite 152-10 that they are secured by a pledge of the proceeds of a contract 152-11 previously made between the district and a city or other 152-12 governmental agency or district, a copy of the contract and the 152-13 proceedings of the city or other governmental agency or district 152-14 authorizing the contract shall be submitted to the attorney 152-15 general. If the bonds have been authorized and if any such 152-16 contract has been made in accordance with the constitution and laws 152-17 of the state, the attorney general shall approve the bonds and such 152-18 contracts and the bonds then shall be registered by the 152-19 comptroller. After approval and registration, the bonds and the 152-20 contracts, if any, are valid and binding and are incontestable for 152-21 any cause. 152-22 Sec. 255.018. CONTRACTS WITH CITIES AND OTHERS. The 152-23 district may enter into contracts with cities and others for 152-24 supplying water to them. The district may contract with a city for 152-25 the rental or leasing of, or for the operation of, the water 152-26 production, water supply, and water supply facilities of the city 153-1 for such consideration as the district and the city may agree. The 153-2 contract may be on such terms and for such time as the parties 153-3 agree and may provide that the contract shall continue in effect 153-4 until bonds specified in the contract and refunding bonds issued in 153-5 lieu of such bonds are paid. 153-6 Sec. 255.019. DISTRICT DEPOSITORY. (a) The board shall 153-7 designate one or more banks within the district to serve as 153-8 depository for the funds of the district. All funds of the 153-9 district shall be deposited in the depository bank or banks, except 153-10 that funds pledged to pay bonds may be deposited with the trustee 153-11 bank named in the trust agreement and except that funds shall be 153-12 remitted to the bank of payment for the payment of principal of and 153-13 interest on bonds. To the extent that funds in the depository 153-14 banks and the trustee bank are not insured by the Federal Deposit 153-15 Insurance Corporation, the funds shall be secured in the manner 153-16 provided by law for the security of county funds. 153-17 (b) Before designating a depository bank or banks, the board 153-18 shall issue a notice stating the time and place when and where the 153-19 board will meet for such purpose and inviting the banks in the 153-20 district to submit applications to be designated depositories. The 153-21 notice must be published one time in a newspaper published in the 153-22 district and specified by the board. The term of service for 153-23 depositories shall be prescribed by the board. 153-24 (c) At the time specified in the notice, the board shall 153-25 consider the applications and the management and condition of the 153-26 banks filing them and shall designate as depositories the bank or 154-1 banks that offer the most favorable terms and conditions for the 154-2 handling of the funds of the district and that the board finds have 154-3 proper management and are in condition to warrant handling of 154-4 district funds. Membership on the board of an officer or director 154-5 of a bank does not disqualify that bank from being designated as 154-6 depository. 154-7 (d) If no applications are received by the time stated in 154-8 the notice, the board shall designate a bank or banks within or 154-9 outside the district on terms and conditions it determines 154-10 advantageous to the district. 154-11 Sec. 255.020. WATER APPROPRIATION PERMITS; PURCHASE OF 154-12 WATER. The district may acquire water appropriation permits 154-13 directly from the commission or from owners of permits. The 154-14 district may purchase water or a water supply from any person, 154-15 firm, corporation or public agency. 154-16 Sec. 255.021. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 154-17 DEPOSITS. All bonds of the district are legal and authorized 154-18 investments for banks, savings banks, trust companies, building and 154-19 loan associations, savings and loan associations, insurance 154-20 companies, fiduciaries, trustees, and guardians and for the sinking 154-21 funds of cities, towns, villages, counties, school districts, or 154-22 other political corporations or subdivisions of the state. Such 154-23 bonds are eligible to secure the deposit of all public funds of the 154-24 state and all public funds of cities, towns, villages, counties, 154-25 school districts, or other political corporations or subdivisions 154-26 of the state; and the bonds are lawful and sufficient security for 155-1 the deposits to the extent of their value when the bonds are 155-2 accompanied by all unmatured coupons. 155-3 Sec. 255.022. BONDS EXEMPT FROM TAXATION. The 155-4 accomplishment of the purposes stated in this chapter is for the 155-5 benefit of the people of this state and for the improvement of 155-6 their properties and industries, and the district in carrying out 155-7 the purposes of this chapter will be performing an essential public 155-8 function under Section 59, Article XVI, Texas Constitution, and 155-9 shall not be required to pay any tax or assessment on the project 155-10 or any part of the project, and the bonds issued under this chapter 155-11 and the transfer of and income from the bonds, including the 155-12 profits made on the sale of the bonds, shall at all times be free 155-13 from taxation within this state. 155-14 Sec. 255.023. TAX ROLLS. (a) The tax rolls of the cities 155-15 in the district as created and in annexed territory shall 155-16 constitute the tax rolls of the district until assessments and tax 155-17 rolls are made by the district. 155-18 (b) Before the sale and delivery of district bonds that are 155-19 payable wholly or partially from ad valorem taxes, the board shall 155-20 appoint a tax assessor and collector and a board of equalization 155-21 and shall cause taxes to be assessed, valuations to be equalized, 155-22 and tax rolls to be prepared. General laws applicable to water 155-23 control and improvement districts with reference to tax assessors 155-24 and collectors, boards of equalization, tax rolls, and the levy and 155-25 collection of taxes and delinquent taxes shall be applicable to the 155-26 district, except that the board of equalization, to be appointed 156-1 each year by the board, shall consist of one member residing in 156-2 each city in the district. 156-3 Sec. 255.024. ADOPTION OF RULES AND REGULATIONS. (a) The 156-4 board may adopt and promulgate all reasonable rules and regulations 156-5 to secure, maintain, and preserve the sanitary condition of all 156-6 water in and to flow into any reservoir owned by the district, to 156-7 prevent the waste or the unauthorized use of water, and to regulate 156-8 residence, hunting, fishing, boating, and camping, and all 156-9 recreational and business privileges, along or around any such 156-10 reservoir and the Colorado River and its tributaries or any body of 156-11 land or easement owned or controlled by the district. The board 156-12 may make contracts with responsible persons for the construction 156-13 and operation of toll bridges over the district's water or for 156-14 ferry service on or over the district's water, for periods not to 156-15 exceed 20 years in the case of a bridge and not to exceed 10 years 156-16 in the case of a ferry, setting the compensation to be charged for 156-17 service by any such facility so that the charges are reasonable and 156-18 requiring adequate bond or bonds from the contracting person, 156-19 association, or corporation, payable to the district, of such 156-20 amount and conditioned as the board determines appropriate. The 156-21 contracts may provide for forfeiture of the particular franchise in 156-22 case of a failure of the licensee to render adequate public 156-23 service. 156-24 (b) The district may prescribe reasonable penalties for the 156-25 breach of a rule or regulation of the district, which penalties 156-26 shall not exceed a fine of more than $200 or imprisonment for not 157-1 more than 30 days, or both a fine and imprisonment. The penalties 157-2 are in addition to any other penalties provided by the laws of the 157-3 state and may be enforced by complaints filed in the appropriate 157-4 court of jurisdiction. A rule or regulation that provides a 157-5 penalty for the violation of a rule or regulation is not effective 157-6 or enforceable unless the district has published a substantive 157-7 statement of the particular rule or regulation and the penalty for 157-8 its violation once a week for two consecutive weeks in Scurry and 157-9 Borden counties. The substantive statement must be as condensed as 157-10 possible to afford sufficient notice of the act forbidden by the 157-11 rule or regulation. A single notice may embrace a number of 157-12 regulations. The notice must state that breach of the regulation 157-13 or regulations will subject the violator to a penalty and that the 157-14 full text of the rule or regulation is on file in the principal 157-15 office of the district, where it may be read by an interested 157-16 person. Five days after the second publication of the required 157-17 notice, the rule or regulation shall be in effect, and ignorance of 157-18 the rule or regulation does not constitute a defense to a 157-19 prosecution for the enforcement of a penalty. The court shall take 157-20 judicial notice of rules and regulations authorized by this 157-21 subsection, and the rules and regulations shall be considered 157-22 similar in nature to a valid penal ordinance of a city. 157-23 (c) The district may employ and constitute its own peace 157-24 officers, and any such officer or any county peace officer may make 157-25 arrests when necessary to prevent or stop the commission of any 157-26 offense against the regulations of the district, or against the 158-1 laws of the state, when the offense, or threatened offense, occurs 158-2 on any land, water, or easement owned or controlled by the district 158-3 or may make an arrest at any place if an offense involves injury or 158-4 detriment to any property owned or controlled by the district. 158-5 Sec. 255.025. PARKS AND RECREATION. The district may 158-6 establish or otherwise provide for public parks and recreation 158-7 facilities and may acquire land adjacent to any of its reservoirs 158-8 for such purposes; provided, however, that no money received from 158-9 taxation or from bonds payable wholly or partially from taxation 158-10 may be used for such purpose. 158-11 CHAPTER 256. DALLAS COUNTY UTILITY AND RECLAMATION DISTRICT 158-12 Sec. 256.001. CREATION. (a) A conservation, utility, and 158-13 reclamation district to be known as the "Dallas County Utility and 158-14 Reclamation District" is created. The district is a governmental 158-15 agency and a body politic and corporate. 158-16 (b) The district is created under and is essential to 158-17 accomplish the purposes of Section 59, Article XVI, Texas 158-18 Constitution. 158-19 Sec. 256.002. DEFINITIONS. In this chapter: 158-20 (1) "Board" means the board of directors of the 158-21 district. 158-22 (2) "Director" means a member of the board. 158-23 (3) "District" means the Dallas County Utility and 158-24 Reclamation District. 158-25 Sec. 256.003. TERRITORY. (a) The district includes all 158-26 property situated within the boundaries of the district as 159-1 redefined, described, and filed of record in Volume 72226, page 159-2 0508, of the Deed Records of Dallas County and includes areas 159-3 annexed to the district, regardless of the date of such annexation, 159-4 and filed of record in such deed records. It is found and 159-5 determined that the boundaries and field notes of the district form 159-6 a closure. If a mistake is made in copying the field notes on file 159-7 in such records or in field notes filed pursuant to annexation, the 159-8 mistake does not affect the organization, existence, and validity 159-9 of the district or the right to issue bonds voted in the district 159-10 or the right to assess, levy, and collect taxes or its operations, 159-11 projects, or activities. 159-12 (b) The legislature finds and determines that all property 159-13 situated within the boundaries of the district has been, is, and 159-14 will be benefited by the district, by the provisions of this 159-15 chapter, and by the projects and properties permitted by this 159-16 chapter and by prior applicable law. 159-17 (c) All bonds, contracts, and other obligations issued, 159-18 executed, or incurred by the district before February 1, 1984, to 159-19 the extent not satisfied or paid, constitute lawful obligations of 159-20 the district in accordance with their respective terms. 159-21 Sec. 256.004. POWERS AND DUTIES. (a) The district may 159-22 exercise all of the rights, powers, privileges, authorities, and 159-23 functions conferred and imposed by the general laws of this state 159-24 applicable to districts created under the authority of Section 59, 159-25 Article XVI, Texas Constitution, including without limitation those 159-26 conferred by Chapters 49 and 54; provided, however, that the 160-1 district shall obtain specific written approval in the form of a 160-2 resolution of the city council of the City of Irving as a condition 160-3 precedent to the issuance of bonds for fire-fighting purposes or to 160-4 engage in fire-fighting activities. All general laws not in 160-5 conflict with or inconsistent with the provisions of this chapter 160-6 are adopted and incorporated in this chapter by reference with the 160-7 same effect as if copied in full in this chapter. If any provision 160-8 of general law conflicts with or is inconsistent with the 160-9 provisions of this chapter, the provisions of this chapter prevail. 160-10 (b) Subject to the provisions of Subsection (c), the powers 160-11 of the district include the power to purchase, construct, acquire, 160-12 own, operate, maintain, repair, and improve within its boundaries 160-13 any works, improvements, facilities, plants, equipment, appliances, 160-14 vehicles, and other equipment incident, helpful, or necessary to 160-15 provide a land-based transportation system within the district, but 160-16 not within the city of Irving streets and roadway system, capable 160-17 of transporting people and personal property across and along the 160-18 lakes, waterways, watercourses, and lands within and to the 160-19 boundaries of the district. The legislature finds and determines 160-20 that the exercise of this power and the development and furnishing 160-21 of transportation projects under this subsection are necessary, 160-22 appropriate, and desirable in the conservation and development of 160-23 the state's natural resources, including the waters, lands, and 160-24 projects within the district, in order to fully develop those 160-25 purposes. 160-26 (c) The powers granted in Subsection (b) are subject to the 161-1 provisions of this subsection. The district may not issue any 161-2 bonds that are payable in whole or in part from ad valorem taxes 161-3 and that are issued for the purposes authorized in Subsection (b) 161-4 unless the district has obtained a final judgment of a court having 161-5 jurisdiction under Chapter 1205, Government Code, or under other 161-6 appropriate and applicable rules or statutes, and the judgment 161-7 holds in substance, in the opinion of the attorney general, that 161-8 the issuance of tax bonds for the purposes described in Subsection 161-9 (b) will be for purposes authorized by Section 59, Article XVI, 161-10 Texas Constitution. The provisions of this subsection do not apply 161-11 to revenue bonds that are not payable in any part from ad valorem 161-12 taxes levied within the district. The district has the authority, 161-13 without reference to the requirements of this subsection, to issue 161-14 bonds payable solely from contracts or other revenues entered into 161-15 or collected for the purposes described in Subsection (b) and to 161-16 pay the costs of operation of a land-based transportation system 161-17 from funds other than ad valorem taxes. 161-18 (d) The district may sell potable water to retail or 161-19 wholesale customers if the governing body of the City of Irving 161-20 gives its written consent. 161-21 Sec. 256.005. ROADS AND TURNPIKES. (a) The district may 161-22 provide for the construction, maintenance, and operation of 161-23 macadamized, graveled, or paved roads and turnpikes, or works, 161-24 facilities, or improvements in aid of such roads or turnpikes, 161-25 within or outside the boundaries of the district, to the fullest 161-26 extent authorized and contemplated by the provisions of Section 52, 162-1 Article III, Texas Constitution, and, subject to the provisions of 162-2 this chapter, may issue, sell, and deliver bonds, notes, or other 162-3 obligations of the district for such purposes; provided, however, 162-4 that without the consent and approval of the City of Irving, the 162-5 district shall not undertake to construct, maintain, operate, 162-6 repair, reconstruct, cross, intersect, or connect with any public 162-7 streets or roads of the City of Irving; 162-8 (b) The board may expend funds, borrow money, issue bonds, 162-9 issue bond anticipation notes and tax anticipation notes, levy and 162-10 collect maintenance taxes, and carry out all acts and have all 162-11 power and authority authorized by Section 52, Article III, Texas 162-12 Constitution; provided, however, that bonds may not be issued by 162-13 the district for the purposes described in this section unless 162-14 authorized by an election at which a two-thirds majority of the 162-15 resident, qualified electors of the district vote in favor of the 162-16 issuance of the bonds; and provided further, that bonds, notes, or 162-17 other obligations of the district issued or incurred for the 162-18 purposes described in this chapter may not exceed one-fourth of the 162-19 assessed valuation of the real property of the district. 162-20 Sec. 256.006. TAX ABATEMENT AGREEMENTS. (a) The district 162-21 may enter into tax abatement agreements and may designate areas as 162-22 reinvestment zones pursuant to Section 1-g, Article VIII, Texas 162-23 Constitution, this chapter, and Chapter 312, Tax Code. Chapter 162-24 312, Tax Code, applies to the district except as otherwise provided 162-25 by this chapter. In the case of any conflict between this chapter 162-26 and Chapter 312, Tax Code, the provisions of this chapter prevail. 163-1 (b) Notwithstanding any amendment or repeal of this chapter, 163-2 the applicable provisions of this chapter under which a tax 163-3 abatement agreement is entered into shall apply to the agreement 163-4 during the effective date of the agreement and those provisions 163-5 shall remain in effect for that purpose. 163-6 (c) The board may designate as a reinvestment zone for a 163-7 period of 50 years or until the termination of all outstanding tax 163-8 abatement agreements, whichever occurs last, an area within its 163-9 boundaries that satisfies the requirements of Section 312.202, Tax 163-10 Code. 163-11 (d) The district and the board have all of a municipality's 163-12 rights, powers, and authorization contained in Chapter 312, Tax 163-13 Code. 163-14 (e) The district shall enter into tax abatement agreements 163-15 for single-family residential property, as defined by the district, 163-16 for periods of 50 years and for property other than single-family 163-17 residential property for periods not to exceed: 163-18 (1) 25 years if the notice for the project is 163-19 submitted in 1999; 163-20 (2) 24 years if the notice for the project is 163-21 submitted in 2000; 163-22 (3) 23 years if the notice for the project is 163-23 submitted in 2001; 163-24 (4) 22 years if the notice for the project is 163-25 submitted in 2002; 163-26 (5) 21 years if the notice for the project is 164-1 submitted in 2003; and 164-2 (6) 20 years if the notice for the project is 164-3 submitted in 2004 or later. 164-4 (f) A tax abatement agreement is subject to the rights of 164-5 credit providers of the district, including holders of 164-6 tax-supported bonds of the district, regardless of when the bonds 164-7 were issued. 164-8 (g) Except as provided by Subsection (h), a tax abatement 164-9 agreement shall provide that the portion of the taxable value of 164-10 the property subject to the agreement that exceeds the taxable 164-11 value of the property for the year in which notice for the project 164-12 to which the agreement pertains is submitted is: 164-13 (1) subject to an effective tax rate of: 164-14 (A) 60 cents for each $100 of taxable value of 164-15 property if the property is residential real property other than 164-16 single-family residential property; and 164-17 (B) 50 cents for each $100 of taxable value of 164-18 property if the property is nonresidential real property; and 164-19 (2) exempt from taxation if the property is 164-20 single-family residential property. 164-21 (h) The applicable effective tax rate under Subsection (g) 164-22 is increased by the amount that the district's debt rate at the 164-23 time the notice for the project to which the tax abatement 164-24 agreement pertains is submitted exceeds 90 cents for each $100 of 164-25 taxable value of property but may not exceed 75 cents for each $100 164-26 of taxable value of property. This subsection applies only to a 165-1 tax abatement agreement pertaining to a project for which notice is 165-2 submitted in 2001 or later and does not apply to single-family 165-3 residential property. 165-4 (i) The district may enter into tax abatement agreements 165-5 with owners of real and personal property within the district for 165-6 proposed projects. 165-7 (j) The district shall adopt guidelines and criteria 165-8 governing tax abatement agreements by the district. The guidelines 165-9 and criteria must specify the criteria for an eligible project. 165-10 The guidelines and criteria are effective until the termination of 165-11 all outstanding tax abatement agreements. The district may amend 165-12 the guidelines and criteria by a vote of a majority of the 165-13 directors. 165-14 (k) The district shall adopt a form of tax abatement 165-15 agreement to be used by the district. 165-16 (l) A tax abatement agreement entered into by the district: 165-17 (1) must be consistent with: 165-18 (A) the guidelines and criteria adopted by the 165-19 district; 165-20 (B) the form of tax abatement agreement adopted 165-21 by the district; and 165-22 (C) the requirements of deed restrictions, or 165-23 other equivalent restrictions, enforced by the Las Colinas 165-24 Association or by the district; and 165-25 (2) may: 165-26 (A) include phased projects; 166-1 (B) incorporate the district's infrastructure 166-2 requirements; and 166-3 (C) generally describe the kind, number, and 166-4 location of all proposed improvements, subject to any change 166-5 provided by a notice of intent to construct the project, specifying 166-6 the details of the project, submitted by the owner to the district. 166-7 (m) Tax abatement agreements entered into by the district 166-8 are not required to contain identical terms as other tax abatement 166-9 agreements, if any, covering: 166-10 (1) the same property that are entered into by other 166-11 taxing units; or 166-12 (2) different property that are entered into by the 166-13 district. 166-14 (n) The district may enter into tax abatement agreements for 166-15 facilities and structures that commenced or were modified on or 166-16 after January 1, 1995, but before April 24, 1995. 166-17 (o) The district may tax at a reduced rate as provided by 166-18 Subsection (g) personal property located on property described in 166-19 Subsection (n) in each year covered by the agreement except for 166-20 personal property located on the property at any time before the 166-21 period covered by the agreement began. 166-22 Sec. 256.007. BOARD OF DIRECTORS. (a) All powers of the 166-23 district shall be exercised by a board of five directors. Each 166-24 director serves for a term of office as provided by this section 166-25 and until a successor is appointed and has qualified. If a 166-26 director ceases to possess the qualifications prescribed by this 167-1 section, the director's office shall be declared vacant by the 167-2 board and a successor shall be appointed by the city council of the 167-3 City of Irving. 167-4 (b) Each director must be at least 18 years of age and 167-5 possess one of the following qualifications: 167-6 (1) own land within the district subject to taxation; 167-7 (2) be a qualified voter residing within the district 167-8 at the time of qualification as a director; 167-9 (3) be an agent, employee, officer, or director of any 167-10 individual, corporation, trust, or partnership that owns or leases 167-11 real property within the district; or 167-12 (4) be a resident of the city of Irving. 167-13 (c) At least three of the five directors must qualify as 167-14 directors under Section 49.052(a), without consideration of any 167-15 exceptions from that subsection provided by other provisions of 167-16 Section 49.052. Section 49.052 applies only for purposes of this 167-17 section. 167-18 (d) Each director shall qualify by subscribing the 167-19 constitutional oath of office and by giving bond in the amount of 167-20 $5,000 for the faithful performance of the director's duties. The 167-21 directors' bonds must be approved by the district's board and 167-22 recorded in the official bond records of the county clerk of Dallas 167-23 County. 167-24 (e) Directors serve for staggered terms of four years, with 167-25 the terms of two or three directors expiring October 1 of each 167-26 odd-numbered year. Each director serves for a term of office as 168-1 provided by this subsection and until a successor is appointed and 168-2 takes office. 168-3 (f) Directors are appointed by the city council of the City 168-4 of Irving. All vacancies on the board shall be filled by 168-5 appointment to the unexpired term by the city council of the City 168-6 of Irving. The city council of the City of Irving may remove and 168-7 replace any director it appoints at any time without cause. 168-8 (g) Except for an action to dissolve the district under 168-9 state law or any other specific action taken by the city that must 168-10 be evidenced in writing, the city by its appointment and removal of 168-11 directors or any other action taken directly relating to any bond, 168-12 note, financial obligation, or contractual obligation of the 168-13 district, does not assume, agree to pay, or guarantee the payment 168-14 of any bond, note, or other financial obligation or undertaking of 168-15 the district, whether in the form of securities or in other 168-16 contractual forms, including the district's bonds. 168-17 (h) The directors shall establish in the district's bylaws 168-18 what shall constitute a quorum for any meeting, and a concurrence 168-19 of a majority of the quorum shall be necessary in all district 168-20 matters. The board shall prescribe the method of execution of all 168-21 contracts, the signing of checks, and the handling of any other 168-22 matters approved by the board as shown in the official minutes of 168-23 the district. 168-24 (i) Annually in the month of October, the board shall 168-25 reorganize and elect new officers as soon as practicable. The 168-26 board may designate one or more assistant secretaries and an 169-1 assistant treasurer, who may but need not be a member of the board. 169-2 The secretary or one of the assistant secretaries of the board 169-3 shall be responsible for keeping the minutes of the meetings and 169-4 official records of the board and may certify to any action taken 169-5 by the board. 169-6 (j) Each director is entitled to receive a per diem payment 169-7 of $50 for each regular or special board or committee meeting and 169-8 shall be reimbursed for actual expenses approved by the board. The 169-9 board shall hold regular and special meetings, at such times and on 169-10 such dates as the board shall determine, on giving notice as 169-11 required by the district's bylaws. The board shall designate a 169-12 meeting place or places. A meeting place of the district is a 169-13 public place for matters pertaining to the district's business. 169-14 (k) The board shall appoint a person to the office of tax 169-15 assessor-collector and may appoint deputies as the board considers 169-16 necessary. Each tax assessor-collector and deputy shall qualify by 169-17 executing a bond for $10,000 payable to the district and approved 169-18 by the board conditioned on the faithful performance of the 169-19 person's duties. The compensation of the tax assessor-collector 169-20 and deputies shall be fixed by the board. One of the directors 169-21 shall serve as treasurer of the district and shall see that all 169-22 funds of the district are deposited in the depository bank or banks 169-23 designated by the board as the official depository bank of the 169-24 district. To the extent that funds in the depository bank or banks 169-25 are not insured by the Federal Deposit Insurance Corporation, such 169-26 funds shall be secured in the manner provided by law for the 170-1 security of funds of counties of this state. Funds of the district 170-2 may be invested and reinvested at the direction of the board, its 170-3 treasurer, or other qualified representative in direct or indirect 170-4 obligations of the United States, the state, or any county, city, 170-5 or school district or other political subdivision of the state or 170-6 may be placed in certificates of deposit of state or national banks 170-7 within the state, provided that the same are secured in the manner 170-8 provided for the security of funds of counties of this state. 170-9 Sec. 256.008. ELECTIONS. Elections required to be held by 170-10 the district shall be called by the board. The results of the 170-11 elections shall be canvassed by the board. Elections shall be held 170-12 in accordance with the Election Code, except as otherwise provided 170-13 by this chapter. Notice of all district elections shall be given 170-14 by publication in a newspaper of general circulation in Dallas 170-15 County once a week for two consecutive weeks, with the first 170-16 publication at least 14 days before the election. Any elections 170-17 held by the district for any purpose may be held separately or may 170-18 be held at the same time as an election to be held for other 170-19 purposes, including a maintenance tax election, which may be held 170-20 on the same day as a bond election or any other election. 170-21 Elections held at the same time may be called by the board in a 170-22 single election order, and the results of the elections may be 170-23 canvassed in a single order. 170-24 Sec. 256.009. EXCLUSION AND ANNEXATION OF PROPERTY. 170-25 (a) The board may exclude land from the district and add land to 170-26 the district as provided by this section. 171-1 (b) The board may, solely on its own motion, call a hearing 171-2 on the question of exclusion of land from the district if the board 171-3 finds that the exclusion is practicable, just, or desirable and 171-4 that the holders of all outstanding bonds, notes, securities, and 171-5 other obligations of the district are or will be protected as a 171-6 result of the district's providing a substantial equivalent as 171-7 security in lieu of the excluded land for the bonds, notes, 171-8 securities, and other obligations. 171-9 (c) If the board determines that a hearing should be held on 171-10 the exclusion of land, the board shall give notice of a time and 171-11 place for the hearing by publishing the notice once a week for two 171-12 consecutive weeks in one or more newspapers of general circulation 171-13 in the district. The first publication shall appear at least 14 171-14 days before the hearing date. 171-15 (d) After considering all matters presented during the 171-16 hearing by the district's staff, property owners, taxpayers, and 171-17 others, on the board's finding and concluding that the exclusion of 171-18 land from the district is practicable, just, or desirable, and that 171-19 the holders of all outstanding bonds, notes, securities, and other 171-20 obligations of the district are or will be protected as a result of 171-21 the district's providing a substantial equivalent as security for 171-22 payment of the bonds, notes, securities, and other obligations in 171-23 the form of newly annexed property or other lawful and adequate 171-24 security, the board may, solely at its own discretion, enter an 171-25 order excluding the land and property from the district and shall 171-26 redefine in the order the boundaries of the district to embrace all 172-1 land not excluded. A copy of the order excluding the land and 172-2 redefining the boundaries of the district shall be filed in the 172-3 deed records of Dallas County. 172-4 (e) The district may annex property to the district in the 172-5 manner provided by Subchapter J, Chapter 49. 172-6 (f) The district must obtain the approval of the City of 172-7 Irving in the form of a city council resolution as a condition 172-8 precedent to the annexation of any additional land and the approval 172-9 of the district's annual operation and maintenance budget. 172-10 Sec. 256.010. ADDITIONAL SPECIFIC POWERS AND DUTIES. 172-11 (a) The board may expend funds, borrow money, and issue bond 172-12 anticipation notes, tax anticipation notes, and bonds or notes 172-13 payable from revenue derived from the ownership of all or any 172-14 designated part of the district's works, plant, improvements, 172-15 facilities, or equipment, including the revenue derived from the 172-16 district's raw water supply system and the use and lease of the 172-17 district's land and facilities after deduction of the reasonable 172-18 cost of maintaining and operating these facilities, and may levy 172-19 and collect maintenance taxes and carry out all acts and have all 172-20 power and authority in accordance with the provisions of Subchapter 172-21 E, Chapter 49, and Sections 49.057(f) and 49.107. 172-22 (b) The board may issue bonds pursuant to and in accordance 172-23 with Sections 49.106, 49.184, 49.215, 54.501, 54.507, 54.5161, and 172-24 54.521. Sections 49.181 and 49.182 shall not be applicable to the 172-25 district. 172-26 (c) The board may enter into and execute a credit agreement, 173-1 including a letter of credit, line of credit, convertible line of 173-2 credit, loan agreement, revolving credit agreement, reimbursement 173-3 agreement, insurance contract, commitment to purchase obligations, 173-4 or sale agreement, or may authorize and approve a commitment or 173-5 other contract or agreement in connection with the operation, 173-6 maintenance, financial management, and financing of the district. 173-7 The board by order or resolution shall fix the terms, conditions, 173-8 and covenants of any credit agreement. A credit agreement 173-9 authorized under this section is payable from and secured by the 173-10 sources and resources of the district as determined by the board, 173-11 including ad valorem taxes levied and collected by the district and 173-12 other lawfully available revenues of the district. The proceeds 173-13 received from a credit agreement may be used in furtherance of the 173-14 purposes of the district as provided by Section 59, Article XVI, 173-15 Texas Constitution, and this chapter, including the maintenance of 173-16 the district and its assets through the stabilization of the 173-17 district tax rate, improvements to district property, and the 173-18 ongoing maintenance of those improvements. The district may not 173-19 enter into a credit agreement payable from ad valorem taxes unless 173-20 that action has been approved by a majority of the qualified voters 173-21 of the district. 173-22 Sec. 256.011. WRITTEN NOTICE TO REAL PROPERTY PURCHASERS NOT 173-23 REQUIRED. Sections 49.452 and 49.453 do not apply to the district. 173-24 Sec. 256.012. USE OF MAINTENANCE TAX PROCEEDS. The board 173-25 may use the money received from maintenance taxes: 173-26 (1) to maintain, repair, and make additions, 174-1 extensions, and improvements to the district's properties, works, 174-2 projects, facilities, and improvements; 174-3 (2) to pay the principal of or interest on any tax 174-4 anticipation notes or bond anticipation notes or to pay other 174-5 contracts or obligations of the district; and 174-6 (3) for any other lawful purpose other than the 174-7 payment of the principal of or interest on bonds, for the payment 174-8 of which separate taxes shall be levied and collected to the extent 174-9 the bonds are required to be paid from taxes; provided, however, 174-10 that maintenance taxes may not be used for the purposes permitted 174-11 by Section 256.004(b) unless the district has complied with the 174-12 provisions of Section 256.004(c). 174-13 Sec. 256.013. LEVY, ASSESSMENT, AND COLLECTION OF TAXES. 174-14 The ad valorem plan of taxation shall be used by the district, and 174-15 the provisions of Subchapter G, Chapter 54, and the applicable 174-16 provisions of Title 1, Tax Code, shall be applicable to all matters 174-17 relating to the levy, assessment, and collection of both current 174-18 and delinquent taxes by the district. 174-19 Sec. 256.014. CONTRACTS. The district may enter into 174-20 contracts with the United States or any of its agencies, with the 174-21 City of Irving and any other public bodies, with individuals or 174-22 corporations, or with any other entity for the operation and 174-23 maintenance of or construction of any facility or improvement 174-24 authorized by this chapter. Any contract obligating the district 174-25 to make payments in whole or in part from ad valorem taxes, other 174-26 than maintenance taxes, shall be subject to approval at an election 175-1 held under the same procedures as those required for the issuance 175-2 of bonds payable from ad valorem taxes. All contracts, agreements, 175-3 and obligations previously incurred or entered into between the 175-4 City of Irving and the district shall remain in full force and 175-5 effect until the year 2023 or until the effective date of a 175-6 dissolution of the district by the exercise of a lawful right by 175-7 the city, whichever comes first, and those contracts, agreements, 175-8 and obligations are ratified and affirmed. 175-9 Sec. 256.015. RISK MANAGEMENT PROGRAM. The board may 175-10 implement a funded risk management program to self-insure the 175-11 district against such risks, liabilities, and casualties as the 175-12 board may determine. The board may: 175-13 (1) create or provide for a risk management fund and 175-14 pay or discharge from the fund such claims, losses, risks, 175-15 liabilities, and casualties as may be defined and specified by the 175-16 board, along with the expenses and costs of administering the fund; 175-17 (2) issue, guarantee, or otherwise pledge the 175-18 district's assets, properties, or credit to secure any and all such 175-19 bonds, notes, contracts, or other obligations as may be appropriate 175-20 for the creation of the risk management funds; 175-21 (3) notwithstanding any limitations in Section 175-22 256.014, levy, assess, collect, and pledge ad valorem taxes for the 175-23 payment of bonds, notes, contracts, and other obligations 175-24 authorized pursuant to Subsection (b), and, notwithstanding any 175-25 limitations contained in Section 256.012, pledge the district's 175-26 maintenance taxes for the payment of the bonds, notes, contracts, 176-1 and other obligations; 176-2 (4) organize a nonprofit corporation as a risk 176-3 management authority for the purpose of administering the risk 176-4 management fund and the risk management program in a manner 176-5 consistent with the provisions of this section and may contract 176-6 with that corporation and guarantee and secure its obligations and 176-7 indebtedness for that purpose; 176-8 (5) execute and deliver such other notes, bonds, 176-9 contracts, agreements, documents, certificates, or instruments and 176-10 perform such other acts and things as the board determines 176-11 necessary, advisable, or appropriate to implement and administer a 176-12 risk management program in a manner consistent with this section. 176-13 Sec. 256.016. EMINENT DOMAIN. The district shall have and 176-14 may exercise all rights of eminent domain provided in Chapter 49; 176-15 provided, however, that the district shall not exercise any right 176-16 of eminent domain for the purpose of acquiring any land or 176-17 improvements owned by the City of Irving. 176-18 Sec. 256.017. ABOLITION AND DISSOLUTION OF DISTRICT BY CITY 176-19 OF IRVING. The City of Irving shall have the right to abolish and 176-20 dissolve the district and to assume all bonded indebtedness and 176-21 other district obligations under Section 43.074, Local Government 176-22 Code. 176-23 Sec. 256.018. REGULATORY AND POLICE POWER. (a) The 176-24 district shall have all regulatory and police power under Chapters 176-25 49 and 54 except as provided by this section. 176-26 (b) All rules and regulations containing penal provisions to 177-1 be enforced by a peace officer shall be approved by the City of 177-2 Irving as a condition precedent to their enactment except as to 177-3 rules and regulations regulating privileges on the lakes, and on 177-4 walkways contiguous to the lakes, constructed or to be constructed 177-5 and owned or controlled by the district. The rules shall be 177-6 submitted to the City of Irving for review at least 30 days in 177-7 advance of approval of the rules by the district. 177-8 (c) The district may not make penal rules or regulations 177-9 that conflict with any City of Irving ordinances, including the 177-10 Irving Building Code, Fire Code, Traffic Ordinances, Electrical 177-11 Code, and Mechanical Code. 177-12 (d) The district may not promulgate rules or regulations 177-13 relating to the City of Irving's streets or roads, and the 177-14 district's peace officers may not enforce any rules or regulations 177-15 on the city's streets or roads. 177-16 (e) Peace officers employed by the district shall have the 177-17 power authorized in Chapter 49 except that such officers shall not 177-18 have the power to enforce city ordinances or state law but shall 177-19 have the authority to make arrests when necessary to prevent or 177-20 stop the commission of any offense against the rules and 177-21 regulations of the district, as provided in Section 49.216. 177-22 CHAPTER 257. FRANKLIN COUNTY WATER DISTRICT 177-23 Sec. 257.001. CREATION. (a) A conservation and reclamation 177-24 district to be known as the "Franklin County Water District" is 177-25 created. The district is a governmental agency, a body politic and 177-26 corporate, and a political subdivision of this state. 178-1 (b) The district is created under and is essential to 178-2 accomplish the purposes of Section 59, Article XVI, Texas 178-3 Constitution. 178-4 Sec. 257.002. DEFINITIONS. In this chapter: 178-5 (1) "Board" means the board of directors of the 178-6 district. 178-7 (2) "Director" means a member of the board. 178-8 (3) "District" means the Franklin County Water 178-9 District. 178-10 Sec. 257.003. TERRITORY. The area of the district consists 178-11 of all of Franklin County, and the boundaries of the district shall 178-12 be identical with the boundaries of that county. 178-13 Sec. 257.004. NO CONFIRMATION ELECTION, HEARING ON EXCLUSION 178-14 OF LAND OR PLAN OF TAXATION REQUIRED. It being found and 178-15 determined that all of the land included within the boundaries of 178-16 the district will benefit and that the district is created to serve 178-17 a public use and benefit, the board is not required to call a 178-18 confirmation election or to hold a hearing on the exclusion of 178-19 lands or a hearing on the adoption of a plan of taxation. The ad 178-20 valorem plan of taxation shall be used by the district. 178-21 Sec. 257.005. BOARD OF DIRECTORS. (a) All powers of the 178-22 district shall be exercised by a board of five directors. Each 178-23 director serves for a term of office as provided by this section 178-24 and until a successor is elected or appointed and has qualified. A 178-25 person may not serve as a director unless the person is at least 21 178-26 years of age and resides and owns land in the territorial limits of 179-1 the district. Each director shall subscribe the constitutional 179-2 oath of office and shall give bond in the amount of $5,000 for the 179-3 faithful performance of the person's duties as director. The cost 179-4 of the bond shall be paid by the district. 179-5 (b) Directors serve for four-year terms. A directors 179-6 election shall be held on the first Saturday in May of each 179-7 odd-numbered year to elect the appropriate number of directors. 179-8 Except as provided by this chapter, a directors election is held as 179-9 provided by Chapter 49 and the Election Code. Notice of the 179-10 election shall be published in accordance with the general law 179-11 applicable to water control and improvement districts. The 179-12 election order must state the time, places, and purpose of the 179-13 election. The board shall appoint presiding judges as necessary. 179-14 Each presiding judge shall appoint one assistant judge and at least 179-15 two clerks to assist in holding the election. As determined by the 179-16 board, the board may contract with the county clerk of Franklin 179-17 County to conduct its elections. 179-18 (c) One director represents the district as a whole and is 179-19 elected at large. A candidate for the at-large directorship must 179-20 be a qualified voter who resides in the district. One director 179-21 represents each of the county commissioners precincts in Franklin 179-22 County. The director for a precinct is elected by qualified voters 179-23 residing in the precinct. A candidate for a precinct's 179-24 directorship must be a qualified voter who resides in the precinct. 179-25 (d) Only qualified voters residing in the district are 179-26 entitled to vote at the election. Returns of the election shall be 180-1 made to and canvassed by the board, which shall enter its order 180-2 declaring the results of the election. 180-3 (e) Any candidate for director desiring to have the 180-4 candidate's name printed on the ballot may do so by a petition 180-5 signed by not less than 10 residents of the district who are 180-6 qualified to vote at the election. The petition must be presented 180-7 to the secretary of the board not less than 35 full days before the 180-8 date of the election. 180-9 (f) If a vacancy occurs in the membership of the board, the 180-10 remaining members of the board shall appoint a person from the 180-11 precinct where the vacancy occurs, or from the county in the case 180-12 of an at-large position, to fill the vacancy for the unexpired 180-13 term. 180-14 (g) A director is entitled to receive fees of office in 180-15 accordance with Section 49.060. 180-16 (h) The board shall elect from among its members a president 180-17 and a vice president and such other officers as in the judgment of 180-18 the board are necessary. The president is the chief executive 180-19 officer and the presiding officer of the board and has the same 180-20 right to vote as any other director. When the president is absent 180-21 or fails to or declines to act, the vice president shall perform 180-22 all duties and exercise all power conferred by this chapter on the 180-23 president. The board shall also appoint a secretary, who may or 180-24 may not be a member of the board. 180-25 (i) Three members of the board constitute a quorum for the 180-26 transaction of all business, and a favorable vote of a majority of 181-1 a quorum present is sufficient for the enactment of all measures. 181-2 The board shall hold regular meetings at least once a month at the 181-3 time and place designated by resolution or bylaws of the board. 181-4 The president or any two members may call special meetings as 181-5 necessary in the administration of the district's business provided 181-6 that, at least five days before the meeting date, the secretary 181-7 mails notice to each director, unless the director has waived 181-8 notice of special meetings in writing. 181-9 (j) The board shall keep and preserve a true and full 181-10 account of all its meetings and proceedings and shall preserve the 181-11 board's minutes, contracts, notices, accounts, receipts, and 181-12 records of all kinds. Those documents are the property of the 181-13 district and are subject to public inspection. A regular office 181-14 shall be established and maintained within the district for the 181-15 conduct of its business. 181-16 (k) All records and accounts must conform to approved 181-17 methods of bookkeeping. The board shall have an audit made and 181-18 completed annually, as soon as practicable after the expiration of 181-19 each calendar year, of the books of account and financial records 181-20 of the district for that calendar year. The audit must be made by 181-21 an individual public accountant or firm of public accountants. The 181-22 report on the audit shall be submitted at the first regular meeting 181-23 of the board after the report is completed. One copy of the report 181-24 shall be filed with the office of the district, one with the 181-25 depository of the district, and one in the office of the auditor, 181-26 all of which shall be open to public inspection. Additional copies 182-1 of the report shall be filed with any state or governmental 182-2 agencies as may be required by law. 182-3 Sec. 257.006. DISTRICT POWERS. (a) The district has all 182-4 the rights, powers, and privileges conferred by the general laws of 182-5 the state applicable to water control and improvement districts 182-6 created under the authority of Section 59, Article XVI, Texas 182-7 Constitution. To the extent that general laws applicable to water 182-8 control and improvement districts may be inconsistent or in 182-9 conflict with this chapter, the provisions of this chapter prevail. 182-10 (b) It is the intention of the legislature that the district 182-11 have all the power and authority necessary to fully qualify and 182-12 gain the benefits of all laws that are helpful in carrying out the 182-13 purposes for which the district is created, and the provisions of 182-14 all such laws of which the district may lawfully avail itself are 182-15 adopted by this reference and made applicable to the district. 182-16 (c) The district shall exercise the powers, privileges, and 182-17 functions provided by this section, including the power to: 182-18 (1) control, store, preserve, and distribute its 182-19 waters and floodwaters and the waters of its rivers and streams for 182-20 all useful purposes and to accomplish these ends by all practicable 182-21 means, including the construction, maintenance, and operation of 182-22 all appropriate improvements, plants, works, and facilities and the 182-23 acquisition of water rights and all other properties, lands, 182-24 tenements, easements, and rights necessary to the purpose of the 182-25 organization of the district; 182-26 (2) process, store, and distribute water for 183-1 municipal, domestic, irrigation, and industrial purposes, subject 183-2 to the requirements of Chapter 11; 183-3 (3) dispose of property or rights in property when the 183-4 property or rights are no longer needed for the purposes for which 183-5 the district is created and to lease property or rights in property 183-6 for purposes that will not interfere with the use of the property 183-7 of the district; 183-8 (4) cooperate with and contract with the state or the 183-9 United States or any of their departments or agencies to carry out 183-10 any of the powers or to further any of the purposes of the district 183-11 and, for such purposes, to receive grants, loans, or advancements 183-12 from the state or United States or their departments or agencies; 183-13 and 183-14 (5) make or cause to be made surveys and engineering 183-15 investigations for the information of the district to facilitate 183-16 the accomplishment of its purposes, to employ a general manager, 183-17 attorneys, accountants, engineers, financial experts, or other 183-18 technical or nontechnical employees or assistants and set the 183-19 amount and manner of their compensation, and to provide for the 183-20 payment of all expenditures considered essential to the proper 183-21 operation and maintenance of the district and its affairs. 183-22 (d) The district may exercise all functions to permit the 183-23 accomplishment of its purposes including the acquisition, within or 183-24 outside the district, of land, easements, and rights-of-way and any 183-25 other character of property incident to or necessary in carrying 183-26 out the purposes and work of the district by way of gift, device, 184-1 purchase, leasehold, or condemnation. The right of eminent domain 184-2 is expressly conferred on the district, and the procedure with 184-3 reference to condemnation, the assessment of and estimating of 184-4 damages, payment, appeal, the entering upon the property pending 184-5 appeal, and other procedures prescribed in Chapter 21, Property 184-6 Code, apply to the district. 184-7 (e) If the district, in the exercise of the power of eminent 184-8 domain or power of relocation or any other power granted under this 184-9 chapter, makes necessary the taking of any property or the 184-10 relocation, raising, rerouting, changing the grade, or altering the 184-11 construction of any highway, railroad, electric transmission line, 184-12 telephone or telegraph properties and facilities, or pipeline, all 184-13 such necessary taking, relocation, raising, rerouting, changing of 184-14 grade, or alteration of construction shall be accomplished at the 184-15 expense of the district. It is provided, however, that the expense 184-16 of the district shall be strictly confined to that amount which is 184-17 equal to the actual cost of the property taken or work required 184-18 without enhancement of the property and after deducting the net 184-19 salvage value which may be derived from any property taken. 184-20 (f) The district may do any and all other acts or things 184-21 necessary or proper to carry into effect the purpose for which the 184-22 district is created and organized. 184-23 Sec. 257.007. AWARDING CONTRACTS. The district shall comply 184-24 with the requirements of Section 49.273 when awarding a contract. 184-25 Sec. 257.008. ISSUANCE OF BONDS. (a) For the purpose of 184-26 providing funds for purchasing or otherwise providing works, 185-1 plants, facilities, or appliances necessary to the accomplishment 185-2 of the purposes authorized by this chapter, and for the purpose of 185-3 carrying out any other power or authority conferred by this 185-4 chapter, the district may borrow money and issue negotiable bonds 185-5 payable from such ad valorem taxes or revenues or from both taxes 185-6 and revenues of the district as are pledged by resolution of the 185-7 board. Pending the issuance of definitive bonds, the board may 185-8 authorize the delivery of negotiable interim bonds or notes 185-9 eligible for exchange or substitution by use of definitive bonds. 185-10 (b) Bonds must be issued in the name of the district, signed 185-11 by the president, and attested by the secretary and must bear the 185-12 seal of the district. The signature of the president or secretary, 185-13 or of both, may be printed or lithographed on the bonds authorized 185-14 by the board. The seal of the district may be impressed on the 185-15 bonds or may be printed or lithographed on the bonds, if so 185-16 authorized. 185-17 (c) Bonds must mature, serially or otherwise, in not to 185-18 exceed 40 years and may be sold at a price and under terms 185-19 determined by the board to be the most advantageous reasonably 185-20 obtainable, provided that the interest cost to the district, 185-21 calculated by the use of standard bond interest tables currently in 185-22 use by insurance companies and investment houses, does not exceed 185-23 six percent per year. Within the discretion of the board, bonds 185-24 may be made callable before maturity at such times and prices as 185-25 may be prescribed in the resolution authorizing the bonds and may 185-26 be made registrable as to principal or as to both principal and 186-1 interest. 186-2 (d) Bonds may be issued in one or more than one series and 186-3 from time to time as required for carrying out the purposes of this 186-4 chapter. 186-5 (e) Bonds may be secured by a pledge of all or part of the 186-6 net revenues of the district, of the net revenues of one or more 186-7 contracts made before or after the bonds are issued, or of other 186-8 revenues and income specified by the resolution of the board or in 186-9 the trust indenture. A pledge may reserve the right, under 186-10 conditions specified in the pledge, to issue additional bonds that 186-11 would be on a parity with or subordinate to the bonds being issued. 186-12 In this subsection, "net revenues" means the gross revenues of the 186-13 district less the amount necessary to pay the reasonable cost of 186-14 maintaining and operating the district and its properties. 186-15 (f) If bonds are issued that are payable wholly or partially 186-16 from ad valorem taxes, the board shall levy, assess, and cause to 186-17 be collected a tax sufficient to pay the bonds and the interest on 186-18 the bonds as the bonds and interest become due. In levying the 186-19 tax, the board shall take into consideration reasonable 186-20 delinquencies and costs of collection. In the case of bonds 186-21 payable partially from ad valorem taxes, the rate of the tax for 186-22 any year may be set after giving consideration to the money 186-23 reasonably expected to be received from the pledged revenues 186-24 available for payment of principal and interest and to the extent 186-25 and in the manner permitted by the resolution authorizing the 186-26 issuance of the bonds. 187-1 (g) If bonds payable wholly from revenues are issued, the 187-2 board shall set, establish, and from time to time as necessary 187-3 revise the rates of compensation for the sale of water and other 187-4 services furnished, supplied, and rendered by the district and 187-5 collect the rates in amounts sufficient to pay the expenses of 187-6 operating and maintaining the facilities of the district, to pay 187-7 the bonds as they mature and the interest as it accrues, and to 187-8 maintain the reserve and other funds as provided in the resolution 187-9 authorizing the bonds. If bonds payable partially from revenues 187-10 are issued, the board shall set, establish, and from time to time 187-11 as necessary revise the rates of compensation for the sale of water 187-12 and other services furnished, supplied, and rendered by the 187-13 district and shall collect the rates in amounts sufficient to 187-14 assure compliance with the resolution authorizing the bonds. 187-15 (h) From the proceeds of the sale of bonds, the district may 187-16 set aside an amount for the payment of interest expected to accrue 187-17 during construction and for a reserve interest and sinking fund, 187-18 and this provision may be made in the resolution authorizing the 187-19 bonds. Proceeds from the sale of bonds may also be used for the 187-20 payment of all expenses necessarily incurred in accomplishing the 187-21 purposes for which the district is created, including expenses of 187-22 its organization, of engineering investigations, and of the 187-23 issuance and sale of the bonds. The proceeds from the sale of the 187-24 bonds may be placed on time deposit with the district's depository 187-25 bank or may be temporarily invested in direct obligations of the 187-26 United States government maturing in not more than one year from 188-1 the date of investment. 188-2 (i) In the event of a default or a threatened default in the 188-3 payment of principal of or interest on bonds payable wholly or 188-4 partially from revenues, any court of competent jurisdiction may, 188-5 on petition of the holders of the outstanding bonds, appoint a 188-6 receiver with authority to collect and receive all income of the 188-7 district except taxes, employ and discharge agents and employees of 188-8 the district, take charge of the district's funds on hand, except 188-9 funds received from taxes, unless commingled, and manage the 188-10 proprietary affairs of the district without consent or hindrance by 188-11 the board. The receiver may also be authorized to sell or make 188-12 contracts for the sale of water or other services furnished by the 188-13 district or renew the contracts with the approval of the court 188-14 appointing the receiver. The court may vest the receiver with 188-15 other powers and duties the court finds necessary for the 188-16 protection of the holders of the bonds. The resolution authorizing 188-17 the issuance of the bonds or the trust indenture securing them may 188-18 limit or qualify the rights of less than all of the outstanding 188-19 bonds payable from the same source to institute or prosecute any 188-20 litigation affecting the district's property or income. 188-21 (j) The provisions of Section 49.181 relating to commission 188-22 approval of plans and specifications for projects to be financed by 188-23 the sale of bonds apply to the sale of bonds under this chapter. 188-24 Sec. 257.009. REFUNDING BONDS. (a) The district may issue 188-25 refunding bonds for the purpose of refunding any outstanding bonds 188-26 authorized by this chapter and the interest on the bonds. 189-1 Refunding bonds may be issued to refund more than one series of 189-2 outstanding bonds and may combine the pledges of the outstanding 189-3 bonds for the security of the refunding bonds, and the refunding 189-4 bonds may be secured by other or additional revenues and mortgage 189-5 liens. 189-6 (b) The provisions of this chapter with respect to the 189-7 issuance by the district of other bonds, their security, their 189-8 approval by the attorney general, and the remedies of the holders 189-9 are applicable to refunding bonds. Refunding bonds shall be 189-10 registered by the comptroller on surrender and cancellation of the 189-11 bonds to be refunded, but in lieu of that procedure, the resolution 189-12 authorizing the issuance of the refunding bonds may provide that 189-13 the refunding bonds shall be sold and the proceeds of the sale 189-14 deposited in the bank where the original bonds were payable, in 189-15 which case the refunding bonds may be issued in an amount 189-16 sufficient to pay the principal of and interest on the original 189-17 bonds to their effective option date or maturity date, and the 189-18 comptroller shall register the refunding bonds without concurrent 189-19 surrender and cancellation of the original bonds. 189-20 Sec. 257.010. TRUST INDENTURE. (a) Bonds, including 189-21 revenue bonds, authorized by this chapter that are not payable 189-22 wholly from ad valorem taxes may be additionally secured by a trust 189-23 indenture under which the trustee may be a bank with trust powers 189-24 located either within or outside the state. The bonds may, within 189-25 the discretion of the board, be additionally secured by a deed of 189-26 trust or mortgage lien on physical properties of the district and 190-1 all franchises, easements, water rights and appropriation permits, 190-2 leases and contracts, and all rights appurtenant to the properties, 190-3 vesting in the trustee power to sell the properties for payment of 190-4 the indebtedness, power to operate the properties, and all other 190-5 powers and authority for the further security of the bonds. 190-6 (b) The trust indenture, regardless of the existence of a 190-7 deed of trust or mortgage lien on the properties, may contain any 190-8 provisions prescribed by the board for the security of the bonds 190-9 and the preservation of the trust estate, may make provision for 190-10 amendment or modification of the trust indenture and for the 190-11 issuance of bonds to replace lost or mutilated bonds, may condition 190-12 the right to expend district money or sell district property on 190-13 approval by a registered professional engineer selected as provided 190-14 in the trust indenture, and may make provision for the investment 190-15 of funds of the district. 190-16 (c) A purchaser under a sale under a deed of trust lien, 190-17 where one is given, is the absolute owner of the properties, 190-18 facilities, and rights purchased and has the right to maintain and 190-19 operate the properties, facilities, and rights. 190-20 Sec. 257.011. BOND ELECTIONS. (a) Bonds payable wholly or 190-21 partially from ad valorem taxes, except refunding bonds, may not be 190-22 issued unless authorized at an election at which only the qualified 190-23 voters who reside in the district may vote and a majority of the 190-24 votes cast is in favor of the issuance of the bonds. Bonds not 190-25 payable wholly or partially from ad valorem taxes may be issued 190-26 without an election. 191-1 (b) A bond election described by Subsection (a) may be 191-2 called by the board without a petition. The resolution calling the 191-3 election must specify the time and place or places of holding the 191-4 election, the purpose for which the bonds are to be issued, the 191-5 maximum amount of the bonds, the maximum interest rate, the maximum 191-6 maturity of the bonds, the form of the ballot, and the presiding 191-7 judge for each voting place. The presiding judge serving at each 191-8 voting place shall appoint one assistant judge and at least two 191-9 clerks to assist in holding the election. Notice of the election 191-10 for the issuance of bonds shall be given by publication of a 191-11 substantial copy of the resolution calling the election in a 191-12 newspaper with general circulation in the district once each week 191-13 for at least four consecutive weeks. The first publication must 191-14 appear not less than 28 days before the election. 191-15 (c) The returns of the election shall be made to and 191-16 canvassed by the board. 191-17 (d) Except as otherwise provided in this chapter, the 191-18 Election Code applies to bond elections. If a bond issue election 191-19 fails, another bond election may not be called for a period of six 191-20 months. 191-21 Sec. 257.012. APPROVAL AND REGISTRATION OF BONDS. After 191-22 bonds, including refunding bonds, are authorized by the district, 191-23 the bonds and the record relating to their issuance shall be 191-24 submitted to the attorney general for examination as to their 191-25 validity. If the bonds recite that they are secured by a pledge of 191-26 the proceeds of a contract previously made between the district and 192-1 a city or other governmental agency, authority, or district, a copy 192-2 of the contract and the proceedings of the city or other 192-3 governmental agency, authority, or district authorizing the 192-4 contract shall also be submitted to the attorney general. If the 192-5 bonds have been authorized and the contract has been made in 192-6 accordance with the constitution and laws of the state, the 192-7 attorney general shall approve the bonds and the contract and the 192-8 bonds shall then be registered by the comptroller. After the 192-9 approval and registration, the bonds and the contract, if any, are 192-10 valid and binding and are incontestable for any cause. 192-11 Sec. 257.013. TAXES AUTHORIZED. (a) On a favorable 192-12 majority vote of the qualified voters of the district voting at an 192-13 election held for the purpose within the boundaries of the 192-14 district, the board may levy, assess, and collect annual taxes to 192-15 provide funds necessary to construct or acquire, maintain, and 192-16 operate works, plants, and facilities considered essential or 192-17 beneficial to the district and its purposes and, when so 192-18 authorized, may also levy, assess, and collect annual taxes to 192-19 provide funds adequate to defray the cost of the maintenance, 192-20 operation, and administration of the district. 192-21 (b) Elections for the levy of such taxes shall be ordered by 192-22 the board and notice of the election shall be given and the 192-23 election shall be held and conducted and the results of the 192-24 election determined in the manner provided in this chapter with 192-25 relation to elections for the authorization of bonds. In calling 192-26 an election for taxes under this section, the board shall specify 193-1 the maximum rate of tax that is sought to be levied, and no tax in 193-2 excess of that amount may be levied without submitting the question 193-3 of the increased rate of taxation at an election as provided in 193-4 this section. 193-5 (c) Taxes levied by the district for any purpose constitute 193-6 a lien on the property levied against, and limitation shall not bar 193-7 the enforcement or collection of the taxes. 193-8 Sec. 257.014. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 193-9 DEPOSITS. Bonds of the district are legal and authorized 193-10 investments for banks, savings banks, trust companies, building and 193-11 loan associations, savings and loan associations, insurance 193-12 companies, fiduciaries, and trustees, for sinking funds of cities, 193-13 towns and villages, counties, school districts, or other political 193-14 subdivisions of the state, and for all public funds of the state or 193-15 its agencies, including the state permanent school fund. The bonds 193-16 are eligible to secure deposits of all public funds of the state 193-17 and all public funds of cities, towns, villages, counties, school 193-18 districts, or other political subdivisions or corporations of the 193-19 state, and the bonds are lawful and sufficient security for the 193-20 deposits to the extent of their value when accompanied by all 193-21 unmatured coupons. 193-22 Sec. 257.015. DISTRICT DEPOSITORY. The board shall 193-23 designate one or more banks within the district to serve as 193-24 depository for the funds of the district. All funds of the 193-25 district shall be deposited in the depository bank or banks except 193-26 that sufficient funds shall be remitted to the bank or banks for 194-1 payment of the principal of and interest on the outstanding bonds 194-2 of the district and in time that the funds may be received by the 194-3 bank or banks on or before the date of the maturity of the 194-4 principal and interest to be paid. To the extent that funds in the 194-5 depository bank or banks are not insured by the Federal Deposit 194-6 Insurance Corporation, the funds shall be secured in the manner 194-7 provided by law for the security of county funds. Membership on 194-8 the board of an officer or director of a bank shall not disqualify 194-9 that bank from being designated as depository. 194-10 Sec. 257.016. DISTRICT AND BONDS EXEMPT FROM TAXATION. The 194-11 accomplishment of the purposes stated in this chapter will benefit 194-12 the people of this state and improve their properties and 194-13 industries, and the district in carrying out the purposes of this 194-14 chapter will be performing an essential public function under 194-15 Section 59, Article XVI, Texas Constitution, and may not be 194-16 required to pay any tax or assessment on a project or any part of 194-17 the project, and the bonds issued under this chapter and the 194-18 transfer of and income from the bonds, including the profits made 194-19 on the sale of the bonds, shall at all times be free from taxation 194-20 within the state. 194-21 Sec. 257.017. WATER SUPPLY CONTRACTS. The district may 194-22 enter into contracts with cities and others for supplying water 194-23 services to them. The district may also contract with any city for 194-24 the rental or leasing of, or for the operation of, the city's water 194-25 production, water supply, or water filtration or purification and 194-26 water supply facilities. The contract may be on such terms, for 195-1 such consideration, and for such time as the parties may agree, and 195-2 the contract may provide that it shall continue in effect until 195-3 bonds specified in the contract and any refunding bonds issued in 195-4 lieu of such bonds are paid. 195-5 Sec. 257.018. ACQUISITION OF WATER AND STORAGE CAPACITY IN 195-6 RESERVOIRS. The district may lease or acquire rights in and to 195-7 storage and storage capacity in any reservoir constructed or to be 195-8 constructed by any person, firm, corporation, or public agency or 195-9 from the United States government or any of its agencies. The 195-10 district may also purchase or make contracts for the purchase of 195-11 water or a water supply from any person or firm, corporation, or 195-12 public agency or from the United States government or any of its 195-13 agencies. 195-14 CHAPTER 258. GUADALUPE-BLANCO RIVER AUTHORITY 195-15 Sec. 258.001. CREATION. (a) A conservation and reclamation 195-16 district to be known as the "Guadalupe-Blanco River Authority" is 195-17 created. The authority is a governmental agency and body politic 195-18 and corporate. 195-19 (b) The authority is created under and is essential to 195-20 accomplish the purposes of Section 59, Article XVI, Texas 195-21 Constitution. 195-22 (c) The authority may exercise the rights, privileges, and 195-23 functions provided by Section 59, Article XVI, Texas Constitution, 195-24 and this chapter including, to the extent authorized by this 195-25 chapter, the control, storage, preservation, and distribution of 195-26 storm waters, floodwaters, and the waters of rivers and streams, 196-1 including the Guadalupe and Blanco rivers and their tributaries, 196-2 for irrigation, power, and all other useful purposes; the 196-3 reclamation and irrigation of arid, semiarid, and other lands 196-4 needing irrigation; the reclamation and drainage of overflowed 196-5 lands and other lands needing drainage, but not the reclamation or 196-6 drainage of coastal wetlands or inland marshes; the conservation 196-7 and development of the forests, water, and hydroelectric power of 196-8 the state; the navigation of inland waters; and the preservation 196-9 and conservation of all such natural resources of the state. 196-10 (d) Nothing in this chapter or in any other law shall be 196-11 construed as authorizing the authority to levy or collect taxes or 196-12 assessments or to create any indebtedness payable out of taxes or 196-13 assessments or in any way to pledge the credit of the state. 196-14 Sec. 258.002. DEFINITIONS. In this chapter: 196-15 (1) "Authority" means the Guadalupe-Blanco River 196-16 Authority. 196-17 (2) "Board" means the board of directors of the 196-18 authority. 196-19 (3) "Director" means a member of the board. 196-20 Sec. 258.003. TERRITORY. The authority consists of all the 196-21 territory within the boundaries of Hays, Comal, Guadalupe, 196-22 Caldwell, Gonzales, DeWitt, Victoria, Kendall, Refugio, and Calhoun 196-23 counties. 196-24 Sec. 258.004. POWERS OF THE AUTHORITY. (a) Except as 196-25 expressly limited by this chapter, the authority may exercise all 196-26 powers, rights, privileges, and functions conferred by general law 197-1 on any district or districts, excluding groundwater conservation 197-2 districts, created under Section 59, Article XVI, Texas 197-3 Constitution, including the power: 197-4 (1) to control, store, and preserve, within or 197-5 adjoining the boundaries of the authority, the waters of any rivers 197-6 and streams, including the waters of the Guadalupe and Blanco 197-7 rivers and their tributaries, for all useful purposes and to use, 197-8 distribute, and sell such waters, within the boundaries of the 197-9 authority, for any such purposes; 197-10 (2) to conserve, preserve, and develop groundwater 197-11 resources within the boundaries of the authority, subject to any 197-12 applicable regulation by the state or any political subdivision, 197-13 for all useful purposes and to use, distribute, and sell 197-14 groundwater, within the boundaries of the authority, for any such 197-15 purposes; 197-16 (3) to acquire water, water supply facilities, and 197-17 conservation storage capacity within or outside the authority from 197-18 any person, including the state or any of its agencies and 197-19 subdivisions and the United States and any of its agencies and 197-20 subdivisions; 197-21 (4) to use, distribute, and sell, outside the 197-22 boundaries of the authority, any waters that may be controlled, 197-23 stored, preserved, conserved, developed, or acquired by the 197-24 authority, if the board determines that adequate provision can be 197-25 made to continue to serve the water requirements within the 197-26 boundaries of the authority; provided, however, that the authority 198-1 may not enter into any agreement that contemplates or results in 198-2 the removal from the watershed of the Guadalupe and Blanco rivers 198-3 and their tributaries of any surface water of the authority 198-4 necessary to supply the reasonably foreseeable future water 198-5 requirements for municipal uses within such watershed during the 198-6 next ensuing 50-year period, except on a temporary, interim basis; 198-7 (5) to develop and generate water power and electric 198-8 energy within the boundaries of the authority and to distribute and 198-9 sell water power and electric energy, within or outside the 198-10 boundaries of the authority; 198-11 (6) to prevent or aid in the prevention of damage to 198-12 person or property from the waters of the Guadalupe and Blanco 198-13 rivers and their tributaries; 198-14 (7) to forest and reforest and to aid in the foresting 198-15 and reforesting of the watershed area of the Guadalupe and Blanco 198-16 rivers and their tributaries and to prevent and to aid in the 198-17 prevention of soil erosion and floods within the watershed area; 198-18 (8) to develop the navigation of inland waters within 198-19 the boundaries of the authority and any facilities in aid of that 198-20 purpose; 198-21 (9) to develop the reclamation and drainage of 198-22 overflowed lands and other lands needing drainage within the 198-23 boundaries of the authority and any facilities in aid of those 198-24 purposes but not the power to reclaim or drain coastal wetlands or 198-25 inland marshes; 198-26 (10) to develop the collection, transportation, 199-1 treatment, disposal, and handling of any waste, as that term is 199-2 defined by general law, and any facilities in aid of those 199-3 purposes, but if sanitary sewer facilities for the collection, 199-4 treatment, and disposal of sewage are to be constructed or acquired 199-5 within a city's corporate limits, only with the consent of the 199-6 affected city; 199-7 (11) to conserve and develop waters and lands for 199-8 recreation purposes and any facilities in aid of those purposes; 199-9 (12) to acquire by purchase, lease, or gift or in any 199-10 other manner, other than by condemnation, and to maintain, use, and 199-11 operate property of any kind, real, personal, or mixed, or any 199-12 interest in property, within or outside the boundaries of the 199-13 authority, necessary or convenient to the exercise of the powers, 199-14 rights, privileges, and functions conferred on the authority by 199-15 this chapter; 199-16 (13) to acquire by condemnation property of any kind, 199-17 real, personal, or mixed, or any interest in the property, within 199-18 or outside the boundaries of the authority, other than property or 199-19 any interest in property outside the boundaries of the authority 199-20 owned by any body politic, that is necessary or convenient to the 199-21 exercise of the powers, rights, privileges, and functions conferred 199-22 on the authority by this chapter, in the manner provided by general 199-23 law with respect to condemnation or, at the option of the 199-24 authority, in the manner provided by the statutes relating to 199-25 condemnation by districts organized under general law pursuant to 199-26 Section 59, Article XVI, Texas Constitution; 200-1 (14) subject to the provisions of this chapter, to 200-2 sell, lease, or otherwise dispose of property of any kind, real, 200-3 personal, or mixed, or any interest in the property, that the board 200-4 determines is not necessary to accomplish the purposes of the 200-5 authority or whose sale, lease, or disposition, in the judgment of 200-6 the board, is necessary or convenient to the exercise of the 200-7 powers, rights, privileges, and functions conferred on the 200-8 authority by this chapter or by general law; 200-9 (15) to overflow and inundate any public lands and 200-10 public property and to require the relocation of roads, pipelines, 200-11 transmission lines, railroads, cemeteries, and highways in the 200-12 manner and to the extent permitted to districts organized under 200-13 general law pursuant to Section 59, Article XVI, Texas 200-14 Constitution; provided that if the authority requires the 200-15 relocation, raising, lowering, rerouting, change in grade, or 200-16 alteration of the construction of any railroad, transmission lines, 200-17 conduits, poles, properties, facilities, or pipelines in the 200-18 exercise of the power of eminent domain or any other power, all of 200-19 the relocation, raising, lowering, rerouting, changes in grade, or 200-20 alteration of construction shall be at the sole expense of the 200-21 authority, whereby the term "sole expense" means the actual cost of 200-22 relocation, raising, lowering, rerouting, change in grade, or 200-23 alteration of construction to provide comparable replacement 200-24 without enhancement of facilities, after deducting the net salvage 200-25 value derived from the old facility; 200-26 (16) to construct, extend, improve, maintain, and 201-1 reconstruct, to cause to be constructed, extended, improved, 201-2 maintained, and reconstructed, and to use and operate facilities of 201-3 any kind necessary or convenient to the exercise of the powers, 201-4 rights, privileges, and functions conferred on the authority by 201-5 this chapter or by general law; 201-6 (17) to sue and to be sued in the authority's 201-7 corporate name; 201-8 (18) to adopt, use, and alter a corporate seal; 201-9 (19) to invest and reinvest the funds of the 201-10 authority; 201-11 (20) to make bylaws for the management and regulation 201-12 of the authority's affairs; 201-13 (21) to appoint officers, agents, and employees, to 201-14 prescribe their duties and to set their compensation; 201-15 (22) to make contracts and execute instruments 201-16 necessary or convenient to the exercise of the powers, rights, 201-17 privileges, and functions conferred on the authority by this 201-18 chapter or general law for such term and with such provisions as 201-19 the board determines to be in the best interests of the authority 201-20 (including contracts with the state and the United States, and any 201-21 corporation or agency of either the state or the United States, and 201-22 districts, cities, towns, persons, organizations, associations, 201-23 firms, corporations, entities, or others, as the board determines 201-24 necessary or proper for or in connection with any corporate 201-25 purpose) to provide for the construction, acquisition, ownership, 201-26 financing, operation, maintenance, sale, leasing to or from, or 202-1 other use or disposition of any facilities authorized to be 202-2 developed, preserved, conserved, acquired, or constructed under 202-3 this chapter or general law, including any improvements, 202-4 structures, facilities, and equipment and all other property of any 202-5 kind in connection with such improvements, structures, facilities, 202-6 and equipment and any lands, leaseholds, and easements and any 202-7 interests in any of the property described by this subdivision; 202-8 (23) to authorize and allow any of the persons 202-9 described by Subdivision (22), including the state and the United 202-10 States, and any corporation or agency of either the state or the 202-11 United States, and districts, agencies, cities, towns, persons, 202-12 organizations, associations, firms, corporations, entities, or 202-13 others, to participate with the authority in the joint 202-14 construction, acquisition, ownership, financing, operation, and 202-15 maintenance of the improvements, structures, facilities, and 202-16 equipment described by Subdivision (22) and any other property in 202-17 connection with the improvements, structures, facilities, and 202-18 equipment and such lands, leaseholds, easements, and interests in 202-19 the improvements, structures, facilities, and equipment and the 202-20 other property as the board determines necessary or proper for or 202-21 in connection with any corporate purpose, and to allow such persons 202-22 to receive such portion of the revenues derived from projects or 202-23 property described by this subdivision as the board determines 202-24 just, equitable, and proper; and 202-25 (24) to borrow money for its corporate purposes, 202-26 including the power to borrow money and accept grants from persons, 203-1 including the state and the United States or any corporation or 203-2 agency created or designated by the state or the United States, 203-3 and, in connection with any such loan or grant, to enter into such 203-4 agreements as the state or the United States or the corporations or 203-5 agency may require; and to make and issue negotiable bonds or notes 203-6 for funds borrowed, in the manner and to the extent provided in 203-7 this chapter, and to refund or refinance any outstanding bonds or 203-8 notes and to make and issue negotiable bonds or notes for that 203-9 purpose in the manner and to the extent provided in this chapter. 203-10 (b) Nothing in this chapter shall be construed to authorize 203-11 the issuance of any bonds, notes, or other evidences of 203-12 indebtedness of the authority except as specifically provided in 203-13 this chapter, and no issuance of bonds, notes, or other evidences 203-14 of indebtedness of the authority shall ever be authorized except by 203-15 this chapter or general law. 203-16 (c) Nothing in this chapter shall be construed as conferring 203-17 any water rights on the authority or as setting any priority of 203-18 rights. The authority shall obtain its water rights by application 203-19 to and permit from the commission as provided by general law, and 203-20 nothing in this chapter shall be construed as authorizing the 203-21 authority to make any regulation of the withdrawal of groundwater. 203-22 (d) To the extent the provisions of general law that are 203-23 adopted by reference in this chapter may be in conflict with the 203-24 express provisions of this chapter, the provisions of this chapter 203-25 shall prevail unless the general law is made cumulative. The 203-26 rights, powers, privileges, authority, and functions granted to the 204-1 authority under this chapter, and the authority itself, are subject 204-2 to Chapters 11, 12, and 26. 204-3 Sec. 258.005. CONTINUING OVERSIGHT. The powers and duties 204-4 of the authority as provided by this chapter are subject to the 204-5 continuing rights of oversight by the state. The oversight shall 204-6 be exercised through the commission. The commission shall be 204-7 charged with the authority and duty to approve, or to refuse to 204-8 approve, the adequacy of any plan or plans for flood control or 204-9 conservation improvement purposes devised by the authority for the 204-10 achievement of the plans and purposes intended in the creation of 204-11 the authority and which plans contemplate improvements 204-12 supervised by the state authorities under the provisions of general 204-13 law. 204-14 Sec. 258.006. BOARD OF DIRECTORS; COMPENSATION; VOTING 204-15 REQUIREMENTS. (a) The powers, rights, privileges, and functions 204-16 of the authority shall be exercised by a board, which shall consist 204-17 of nine directors. The board is a state board of a state agency as 204-18 contemplated by Section 30a, Article XVI, Texas Constitution. 204-19 (b) Each member of the board must be a freehold property 204-20 taxpayer of the state and must reside in one of the counties 204-21 included within the boundaries of the authority, but only one 204-22 director shall be appointed from any county. 204-23 (c) The directors are appointed by the governor from 204-24 nominations furnished the governor by the commission. The 204-25 appointments are subject to confirmation by the senate. 204-26 (d) Directors serve for staggered terms of six years with 205-1 the terms of one-third of the directors expiring February 1 of each 205-2 odd-numbered year. Each director shall hold office until the 205-3 expiration of the term for which the director was appointed and 205-4 until a successor is appointed and has qualified, unless removed 205-5 sooner as provided by this chapter. 205-6 (e) A director may be removed by the governor for 205-7 inefficiency, neglect of duty, or misconduct in office, after at 205-8 least 10 days' written notice of the charges and an opportunity to 205-9 be heard in person or by counsel at a public hearing. A vacancy 205-10 resulting from the death, resignation or removal of a director is 205-11 filled for the unexpired term by the governor. 205-12 (f) Each director shall qualify by taking the official oath 205-13 of office prescribed by general statute. 205-14 (g) Each director is entitled to receive $100 per day, or 205-15 such amount as may be prescribed by general law, for each day spent 205-16 in attending meetings of the board and any other business of the 205-17 authority that the board determines necessary, plus actual 205-18 traveling and other expenses. 205-19 (h) Until the adoption of bylaws setting the time and place 205-20 of regular meetings and the manner in which special meetings may be 205-21 called, meetings of the board shall be held at such times and 205-22 places as five of the directors may designate in writing. 205-23 (i) Five directors constitute a quorum at any meeting and, 205-24 except as otherwise provided in this chapter or in the bylaws, all 205-25 action may be taken by the affirmative vote of a majority of the 205-26 directors present at any such meeting, except that no contract that 206-1 involves an amount greater than $10,000 or that is to run for a 206-2 period longer than a year, and no bonds, notes, or other evidence 206-3 of indebtedness, and no amendment of the bylaws shall be valid 206-4 unless authorized or ratified by the affirmative vote of at least 206-5 five directors. 206-6 Sec. 258.007. OFFICERS, AGENTS, AND EMPLOYEES. (a) The 206-7 board shall select a secretary, who shall keep true and complete 206-8 records of all proceedings of the board. Until the appointment of 206-9 a secretary, or in the event of the secretary's absence or 206-10 inability to act, a secretary pro tempore shall be selected by the 206-11 board. 206-12 (b) The board shall select a general manager, who shall be 206-13 the chief executive officer of the authority, and a treasurer. 206-14 (c) The officers shall have such powers and duties, shall 206-15 hold office for such term, and shall be subject to removal in such 206-16 manner as may be provided in the bylaws of the authority. The 206-17 board shall set the compensation of the officers. 206-18 (d) The board may appoint such officers, agents, and 206-19 employees, may set their compensation and term of office and the 206-20 method by which they may be removed, and may delegate to them the 206-21 power and duties the board considers appropriate. 206-22 Sec. 258.008. AUTHORITY FUNDS; SURETY BONDS. (a) The funds 206-23 of the authority may be disbursed only on checks, drafts, orders, 206-24 or other instruments signed by the persons authorized to sign those 206-25 instruments by the bylaws or by a resolution concurred in by not 206-26 less than five directors. 207-1 (b) The general manager, the treasurer, and all other 207-2 officers, agents, and employees of the authority charged with the 207-3 collection, custody, or payment of any funds of the authority shall 207-4 give bond conditioned on the faithful performance of the person's 207-5 duties and an accounting of all funds and property of the authority 207-6 coming into the person's hands. The bonds shall be in a form and 207-7 an amount and with a surety company authorized to do business in 207-8 the state approved by the board. The premiums on the bonds shall 207-9 be paid by the authority and charged as an operating expense. 207-10 Sec. 258.009. AUTHORITY OFFICE; ACCOUNTS; RECORDS; AUDIT. 207-11 (a) The domicile of the authority shall be in the City of New 207-12 Braunfels, Comal County, where the authority shall maintain an 207-13 office, in charge of its general manager. 207-14 (b) The authority shall keep complete and accurate accounts 207-15 conforming to approved methods of accounting principles. 207-16 (c) The accounts and all contracts, documents, and records 207-17 of the authority shall be kept at an official office of the 207-18 authority. The accounts and contracts shall be open to public 207-19 inspection at all reasonable times. 207-20 (d) The board shall have an audit made of the books of 207-21 account and financial records of the authority for each fiscal 207-22 year. 207-23 (e) The audit required under Subsection (d) must be: 207-24 (1) completed not later than the 90th day after the 207-25 last day of each fiscal year; and 207-26 (2) conducted by the state auditor, an independent 208-1 certified public accountant, or a firm of certified public 208-2 accountants. 208-3 (f) Copies of a written report of the audit required under 208-4 Subsection (d), certified to by the accountant or accountants, 208-5 shall be placed and kept on file with the commission, with the 208-6 comptroller, and at the official office and shall be open to public 208-7 inspection at all reasonable times. 208-8 Sec. 258.010. CONFLICT OF INTEREST; PENALTY. A director, 208-9 officer, agent, or employee of the authority may not have or obtain 208-10 an interest, directly or indirectly, in a contract for the purchase 208-11 of property or construction of work by or for the authority. If a 208-12 person described by this section has or obtains an interest in a 208-13 contract for the purchase of property or construction of work by or 208-14 for the authority, the person is guilty of a felony and on 208-15 conviction is subject to a fine in an amount not to exceed $10,000 208-16 or to confinement in the county jail for not less than one year or 208-17 more than 10 years, or both a fine and confinement. 208-18 Sec. 258.011. RATES AND CHARGES. (a) The board shall 208-19 establish and collect rates and other charges for the sale or use 208-20 of water, water connections, power, electric energy, and all other 208-21 services sold, furnished, or supplied by the authority. The fees 208-22 and charges shall be reasonable and nondiscriminatory and 208-23 sufficient to produce revenues adequate to: 208-24 (1) pay all expenses necessary to the operation and 208-25 maintenance and replacements and additions to the properties and 208-26 facilities of the authority; 209-1 (2) pay the interest on, the principal of, and the 209-2 premium, if any, on all bonds issued under this chapter when and as 209-3 the interest, principal, and premium become due and payable; 209-4 (3) pay all sinking fund and reserve fund payments 209-5 agreed to be made with respect to bonds and payable out of the 209-6 revenues, when and as the payments become due and payable; 209-7 (4) fulfill the terms of agreements made with the 209-8 holders of bonds or with a person in their behalf; and 209-9 (5) discharge all other lawful obligations of the 209-10 authority as the obligations become due. 209-11 (b) From the revenues received in excess of those required 209-12 for the purposes provided in Subsections (a)(1)-(3) and (5), the 209-13 board may establish a reasonable depreciation and emergency fund, 209-14 may retire, by purchase and cancellation or redemption, bonds 209-15 issued under this chapter, or may apply the excess revenues to any 209-16 corporate purpose. 209-17 (c) The rates and charges of the authority shall not be in 209-18 excess of what is necessary to fulfill the obligations imposed on 209-19 the authority by this chapter. Nothing in this chapter shall be 209-20 construed as depriving the state of its power to regulate and 209-21 control fees or charges to be collected for the use of water, water 209-22 connections, power, electric energy, or other service, provided 209-23 that the state pledges to and agrees with the purchasers and 209-24 successive holders of bonds issued under this chapter that the 209-25 state will not limit or alter the power vested in the authority by 209-26 this chapter to establish and collect such fees and charges as will 210-1 produce revenues sufficient to pay the items specified in 210-2 Subsection (a) or in any way impair the rights or remedies of the 210-3 holders of the bonds, or of any person in their behalf, until the 210-4 bonds, together with the interest on the bonds and any premium, 210-5 along with interest on unpaid installments of interest and all 210-6 costs and expenses in connection with an action or proceeding by or 210-7 on behalf of the bondholders and all other obligations of the 210-8 authority in connection with the bonds, are fully met and 210-9 discharged. 210-10 (d) If the authority enters into agreements to lease, sell, 210-11 or otherwise dispose of any property or facilities to any person, 210-12 the person shall be subject to such regulations and control of fees 210-13 and charges by the state as may be provided by agreement or general 210-14 law, but the board shall set payments under the leases or other 210-15 contracts and agreements for the use or sale of any property in 210-16 order that the payments, together with any other pledged revenues, 210-17 will be sufficient to pay the interest on, the principal of, and 210-18 any premium on all bonds to which the payments are pledged when and 210-19 as the interest, principal, and premium become due and payable; to 210-20 pay all sinking fund and reserve fund payments agreed to be made 210-21 with respect to the bonds and payable out of such payments, when 210-22 and as the payments become due and payable; and to fulfill the 210-23 terms of any agreement made with the holders of the bonds or any 210-24 person in their behalf and to discharge all other obligations of 210-25 the authority in connection with the bonds as and when the 210-26 obligations become due. 211-1 Sec. 258.012. PAYMENT OF DEBTS. Each indebtedness, 211-2 liability, or obligation of the authority for the payment of money, 211-3 however entered into or incurred and whether arising from contract, 211-4 implied contract, or otherwise, shall be payable: 211-5 (1) out of the revenues received by the authority with 211-6 respect to its properties, subject to any prior lien on the 211-7 revenues conferred by resolution authorizing the issuance of bonds 211-8 adopted as provided by this chapter; or 211-9 (2) if the board so determines, out of the proceeds of 211-10 sale by the authority of bonds payable solely from revenues. 211-11 Sec. 258.013. ISSUANCE OF BONDS. (a) The authority may 211-12 issue bonds or notes as provided in this section for any corporate 211-13 purpose. Bonds or notes, hereinafter called "bonds," may be: 211-14 (1) sold for cash, at public or private sale, at a 211-15 price the board determines, provided that the interest cost of the 211-16 money received for the bonds, computed to maturity, shall not 211-17 exceed 10 percent per year; 211-18 (2) issued on terms the board determines in exchange 211-19 for property of any kind, real, personal, or mixed, or an interest 211-20 in property that the board determines necessary or convenient for 211-21 any corporate purpose; or 211-22 (3) issued in exchange for like principal amounts of 211-23 other obligations of the authority, matured or unmatured. 211-24 (b) The proceeds from the sale of bonds shall be deposited 211-25 in a bank or banks or a trust company or trust companies, and shall 211-26 be paid out pursuant to terms and conditions agreed between the 212-1 authority and the purchasers of the bonds. Bonds shall be 212-2 authorized by a resolution or resolutions of the board concurred in 212-3 by at least five members. Bonds shall bear such date or dates; 212-4 mature at such time or times; bear interest at such rate or rates, 212-5 which may be fixed, variable, floating, or otherwise, not exceeding 212-6 the maximum rate authorized by Chapter 1204, Government Code, 212-7 payable annually, semiannually, or otherwise; be in such 212-8 denominations; be in such form, either coupon or registered; carry 212-9 such registration privileges as to principal only or as to both 212-10 principal and interest and as to exchange of coupon bonds for 212-11 registered bonds or vice versa and exchange of bonds of one 212-12 denomination for bonds of other denominations; be executed in such 212-13 manner; and be payable at such place or places within or outside 212-14 the state, as such resolution or resolutions may provide. 212-15 (c) A resolution or resolutions authorizing bonds may 212-16 contain provisions, which shall be part of the contract between the 212-17 authority and the initial and successive holders of the bonds: 212-18 (1) reserving the right to redeem the bonds or 212-19 requiring the redemption of the bonds, at such time or times, in 212-20 such amounts, and at such prices, not exceeding 105 percent of the 212-21 principal amount of the bonds plus accrued interest, as may be 212-22 provided in the resolution; 212-23 (2) providing for the setting aside of sinking funds 212-24 or reserve funds and the regulation and disposition of those funds; 212-25 (3) pledging, to secure the payment of the principal 212-26 of and interest on the bonds and of the sinking fund or reserve 213-1 fund payments agreed to be made with respect to the bonds, all or 213-2 any part of the gross or net revenues received by the authority 213-3 with respect to the property, real, personal, or mixed, to be 213-4 acquired or constructed with the bonds or the proceeds of the 213-5 bonds, or all or part of the gross or net revenues received by the 213-6 authority from any source; 213-7 (4) prescribing the purposes to which the bonds or 213-8 bonds later issued, or the proceeds of the bonds, may be applied; 213-9 (5) agreeing to set and collect rates and charges 213-10 sufficient to produce revenues adequate to pay the items specified 213-11 in Section 258.011(a) and prescribing the use and disposition of 213-12 all revenues; 213-13 (6) prescribing limitations on the issuance of 213-14 additional bonds and subordinate lien bonds and on the agreements 213-15 that may be made with the purchasers and successive holders of the 213-16 bonds; 213-17 (7) relating to the construction, extension, 213-18 improvement, reconstruction, operation, maintenance, and repair of 213-19 the properties of the authority and the carrying of insurance on 213-20 all or part of the properties covering loss or damage or loss of 213-21 use and occupancy resulting from specified risks; 213-22 (8) setting the procedure, if any, by which, if the 213-23 authority so desires, the terms of a contract with the holders of 213-24 the bonds may be amended or abrogated, the amount of bonds whose 213-25 holders must consent to the amendment or abrogation, and the manner 213-26 in which the consent may be given; 214-1 (9) providing for the execution and delivery by the 214-2 authority to a bank or trust company authorized by law to accept 214-3 trusts, or to the United States or any officer or agency of the 214-4 United States, of indentures and agreements for the benefit of the 214-5 holders of the bonds setting forth any or all of the agreements 214-6 authorized by this section to be made with or for the benefit of 214-7 the holders of such bonds, and any other provisions that may be 214-8 customary in such indentures or agreements; and 214-9 (10) making other provisions, not inconsistent with 214-10 the provisions of this chapter, as the board may approve. 214-11 Sec. 258.014. DEFAULT PROCEDURES. (a) A resolution 214-12 authorizing the issuance of bonds and any indenture or agreement 214-13 entered into pursuant to the resolution may include provisions 214-14 regarding a default on: 214-15 (1) the payment of the interest on any bonds as the 214-16 interest becomes due and payable; 214-17 (2) the payment of the principal of any bonds as they 214-18 become due and payable, whether at maturity, by call for 214-19 redemption, or otherwise; or 214-20 (3) the performance of an agreement made with the 214-21 purchasers or successive holders of any bonds. 214-22 (b) If a default described by Subsection (a) has occurred 214-23 and has continued for the period, if any, prescribed by the 214-24 resolution authorizing the issuance of the bonds, the trustee under 214-25 the indenture or indentures entered into with respect to the bonds 214-26 authorized by the resolution or resolutions, or, if there is no 215-1 indenture, a trustee appointed in the manner provided in the 215-2 resolution by the holders of 25 percent in aggregate principal 215-3 amount of the bonds authorized by the resolution or resolutions and 215-4 then outstanding, and on the written request of those bondholders, 215-5 shall, in the trustee's own name but for the equal and 215-6 proportionate benefit of the holders of all the bonds, and with or 215-7 without having possession of the bonds: 215-8 (1) by mandamus or other suit, action, or proceeding 215-9 at law or in equity, enforce all rights of the holders of the 215-10 bonds; 215-11 (2) bring suit on the bonds or the appurtenant 215-12 coupons; 215-13 (3) by action or suit in equity, require the authority 215-14 to account as if it were the trustee of an express trust for the 215-15 bondholders; 215-16 (4) by action or suit in equity, enjoin any acts or 215-17 things which may be unlawful or in violation of the rights of the 215-18 holders of the bonds; or 215-19 (5) after such notice to the authority as the 215-20 resolution may provide, declare the principal of all of the bonds 215-21 due and payable, and if all defaults have been made good, then with 215-22 the written consent of the holders of 25 percent in aggregate 215-23 principal amount of the bonds then outstanding, annul the 215-24 declaration and its consequences; provided, however, that the 215-25 holders of more than a majority in principal amount of the bonds 215-26 authorized by the resolution and then outstanding shall, by written 216-1 instrument delivered to the trustee, have the right to direct and 216-2 control all action taken or to be taken by the trustee under this 216-3 section. 216-4 (c) A resolution, indenture, or agreement relating to bonds 216-5 may provide that in a suit, action, or proceeding under this 216-6 section, the trustee, whether or not all of the bonds have been 216-7 declared due and payable and with or without possession of any of 216-8 the bonds, shall be entitled as of right to the appointment of a 216-9 receiver who may enter and take possession of all or any part of 216-10 the properties of the authority and operate and maintain the 216-11 properties and set, collect, and receive rates and charges 216-12 sufficient to provide revenues adequate to pay the items set forth 216-13 in Section 258.011(a) and the costs and disbursements of the suit, 216-14 action, or proceeding and apply such revenues in conformity with 216-15 the provisions of this chapter and the resolution or resolutions 216-16 authorizing the bonds. 216-17 (d) In a suit, action, or proceeding by a trustee under this 216-18 section, the reasonable fees, counsel fees, and expenses of the 216-19 trustee and of the receiver or receivers, if any, constitute 216-20 taxable disbursements, and all costs and disbursements allowed by 216-21 the court shall be a first charge on any revenues pledged to secure 216-22 the payment of the bonds. 216-23 (e) Subject to the provisions of the constitution, the 216-24 courts of Comal County shall have jurisdiction of any suit, action, 216-25 or proceeding under this section by a trustee on behalf of the 216-26 bondholders and of all property involved in the suit, action, or 217-1 proceeding. 217-2 (f) In addition to the powers specifically provided by this 217-3 section, the trustee shall have and possess all powers necessary or 217-4 appropriate for the exercise of the powers specifically provided or 217-5 incident to the general representation of the bondholders in the 217-6 enforcement of their rights. 217-7 Sec. 258.015. INTERIM BONDS. Pending the issuance of 217-8 definitive bonds, the authority is authorized to make and issue 217-9 interim bonds. The interim bonds will be taken up with the 217-10 proceeds of the definitive bonds, or the definitive bonds may be 217-11 issued and delivered in exchange for and in substitution of the 217-12 interim bonds. After exchange and substitution the authority shall 217-13 file proper certificates with the comptroller as to the exchange, 217-14 substitution, and cancellation, and the certificates shall be 217-15 recorded by the comptroller in the same manner as the record of 217-16 proceedings authorizing the issuance of the bonds. The authority 217-17 may also make and issue temporary bonds for the purpose of interim 217-18 financing and may make agreements or other provision to refinance 217-19 the temporary bonds with bonds to provide permanent financing at 217-20 the time, in the manner, and on the conditions determined by the 217-21 board. 217-22 Sec. 258.016. APPROVAL BY ATTORNEY GENERAL. (a) Before any 217-23 bonds may be sold by the authority, a certified copy of the 217-24 proceedings for the issuance of the bonds, including the form of 217-25 the bonds, together with any other information which the attorney 217-26 general may require, shall be submitted to the attorney general. 218-1 If the attorney general finds that the bonds have been issued in 218-2 accordance with law, the attorney general shall approve the bonds 218-3 and execute a certificate to that effect, which shall be filed in 218-4 the office of the comptroller and be recorded in a record kept for 218-5 that purpose. The comptroller shall register the bonds if the 218-6 attorney general has filed with the comptroller his certificate 218-7 approving the bonds and the proceedings for the issuance of the 218-8 bonds as provided in this section. No bonds shall be issued until 218-9 the bonds have been registered by the comptroller. 218-10 (b) Bonds approved by the attorney general and registered by 218-11 the comptroller are valid and binding obligations of the authority 218-12 and are incontestable for any cause after their registration. 218-13 (c) If bonds recite that they are secured by a pledge of the 218-14 proceeds of a contract, lease, sale, or other agreement, herein 218-15 called "contract," a copy of the contract and the proceedings of 218-16 the contracting parties shall also be submitted to the attorney 218-17 general. If the bonds have been authorized and the contracts made 218-18 in compliance with law, the attorney general shall approve the 218-19 bonds and contracts, and the bonds shall then be registered by the 218-20 comptroller. When so approved, the bonds and the contracts are 218-21 valid and binding and are incontestable for any cause after their 218-22 registration. 218-23 Sec. 258.017. REFUNDING BONDS. (a) The authority may issue 218-24 bonds or notes, herein called "refunding bonds," for the purpose of 218-25 refunding or refinancing any outstanding bonds or notes, herein 218-26 called "bonds," authorized and issued by the authority pursuant to 219-1 this chapter or other law and the interest and premium, if any, on 219-2 the bonds to maturity or on any earlier redemption date specified 219-3 in the resolution authorizing the issuance of the refunding bonds. 219-4 Refunding bonds may be issued to refund more than one series of 219-5 outstanding bonds, may combine the pledges of the outstanding bonds 219-6 for the security of the refunding bonds, or may be secured by other 219-7 or additional revenues. 219-8 (b) Provisions of this chapter with reference to the 219-9 issuance of bonds, the terms and provisions of the bonds, their 219-10 approval by the attorney general, and the remedies of the 219-11 bondholders shall be applicable to refunding bonds. Refunding 219-12 bonds shall be registered by the comptroller on surrender and 219-13 cancellation of the bonds to be refunded, but in lieu of that 219-14 procedure, the resolution authorizing the issuance of refunding 219-15 bonds may provide that they shall be sold and the proceeds of the 219-16 sale deposited at the places at which the original bonds are 219-17 payable, in which case the refunding bonds may be issued in an 219-18 amount sufficient to pay the interest and premium, if any, on the 219-19 original bonds to their maturity date or specified earlier 219-20 redemption date, and the comptroller shall register the refunding 219-21 bonds without concurrent surrender and cancellation of the original 219-22 bonds. The authority may also refund any outstanding bonds in the 219-23 manner provided by any applicable general law. 219-24 Sec. 258.018. BONDS AS INVESTMENT SECURITY. Bonds issued by 219-25 the authority pursuant to the provisions of this chapter constitute 219-26 investment securities under the Business & Commerce Code. 220-1 Sec. 258.019. PURCHASE OF BONDS BY AUTHORITY. The authority 220-2 may, out of funds available for the purpose, purchase bonds issued 220-3 by the authority at a price not exceeding the redemption price 220-4 applicable at the time of the purchase, or if the bonds are not 220-5 redeemable, at a price not exceeding the principal amount of the 220-6 bonds plus accrued interest. Bonds so purchased shall be canceled, 220-7 and no bonds shall ever be issued in lieu of the canceled bonds. 220-8 Sec. 258.020. BONDS EXEMPT FROM TAXATION. Bonds and the 220-9 interest on the bonds issued under the provisions of this chapter 220-10 are exempt from taxation, except for inheritance taxes, by the 220-11 state or any municipal corporation, county, or other political 220-12 subdivision or taxing district of the state. 220-13 Sec. 258.021. BONDS ELIGIBLE FOR INVESTMENTS AND DEPOSITS. 220-14 Bonds of the authority are legal, eligible, and authorized 220-15 investments for banks, savings and loan associations, insurance 220-16 companies, fiduciaries, trustees, and guardians and for the sinking 220-17 funds of cities, towns, villages, counties, school districts, or 220-18 other political corporations or subdivisions of the state. The 220-19 bonds are eligible to secure the deposit of all public funds of the 220-20 state and of cities, towns, villages, counties, school districts, 220-21 or other political corporations or subdivisions of the state, and 220-22 the bonds are lawful and sufficient security for such deposits to 220-23 the extent of their face value when accompanied by all unmatured 220-24 coupons. 220-25 Sec. 258.022. CHAPTER AS FULL AUTHORITY. This chapter, 220-26 without reference to other statutes of the state, constitutes full 221-1 authority for the authorization and issuance of bonds under this 221-2 chapter. No other act or law with regard to the authorization or 221-3 issuance of obligations or the deposit of the proceeds of the 221-4 obligations, or in any way impeding or restricting the carrying out 221-5 of the acts authorized by this chapter, shall be construed as 221-6 applying to any proceedings or acts under this chapter. 221-7 Sec. 258.023. ADDITIONAL SPECIFIC POWERS. The authority may 221-8 enter into and carry out contracts or establish or comply with 221-9 rules and regulations concerning labor and materials and other 221-10 related matters in connection with any project or projects as the 221-11 authority deems desirable or as requested by the state, the United 221-12 States, or any corporation or agency created, designated, or 221-13 established by the state or the United States that may assist in 221-14 the financing of the project or projects. 221-15 Sec. 258.024. PUBLIC USE OF SURPLUS LANDS OF THE AUTHORITY. 221-16 The authority shall not prevent free public use of its surplus 221-17 lands for recreation purposes and for hunting and fishing except at 221-18 such point where, in the opinion of the board, the use would 221-19 interfere with the proper conduct of business. 221-20 Sec. 258.025. LIBERAL CONSTRUCTION. This chapter and all of 221-21 its terms and provisions shall be liberally construed to effectuate 221-22 the purposes set forth in this chapter. 221-23 Sec. 258.026. ACT CREATING OTHER DISTRICT NOT REPEALED. 221-24 This chapter shall not be construed as repealing Chapter 75, Acts 221-25 of the 43rd Legislature, 1st Called Session, 1933, which created a 221-26 conservation and reclamation district, and the entity created under 222-1 that chapter may, by resolution of its board of directors, merge 222-2 with the authority. 222-3 CHAPTER 259. GULF COAST WATER AUTHORITY 222-4 Sec. 259.001. CREATION. (a) A conservation and reclamation 222-5 district to be known as the "Gulf Coast Water Authority" is 222-6 created. The authority is a governmental agency and body politic 222-7 and corporate and a municipal corporation. 222-8 (b) The authority is created under and is essential to 222-9 accomplish the purposes of Section 59, Article XVI, Texas 222-10 Constitution. 222-11 Sec. 259.002. DEFINITIONS. In this chapter: 222-12 (1) "Authority" means the Gulf Coast Water Authority. 222-13 (2) "Board" means the board of directors of the 222-14 authority. 222-15 (3) "Director" means a member of the board. 222-16 Sec. 259.003. TERRITORY. The authority comprises all the 222-17 territory contained within Galveston County, and the boundaries of 222-18 the authority are the same as and coextensive with the boundaries 222-19 of Galveston County. 222-20 Sec. 259.004. POWERS AND DUTIES. (a) Except as expressly 222-21 limited by this chapter, the authority may exercise all rights, 222-22 powers, privileges, and authority conferred by the general laws of 222-23 this state applicable to municipal utility districts created under 222-24 authority of Section 59, Article XVI, Texas Constitution, including 222-25 those conferred by Chapters 49 and 54, but to the extent that the 222-26 provisions of such general laws may be in conflict with or 223-1 inconsistent with the provisions of this chapter, the provisions of 223-2 this chapter prevail. All such general laws are adopted and 223-3 incorporated by reference with the same effect as if incorporated 223-4 in full in this chapter. 223-5 (b) The authority may make, construct, or otherwise acquire 223-6 improvements, either within or outside the boundaries of the 223-7 authority, necessary to carry out the powers and authority granted 223-8 by this chapter and general law and may exercise the power of 223-9 eminent domain for such purposes; provided, however, that the 223-10 authority shall not have the power of eminent domain as to all or 223-11 any part of the water supply, property, works, or facilities of any 223-12 private person or persons or of any private or public corporation 223-13 or association engaged in the business of supplying water in 223-14 Galveston County to any class of consumers for any use on June 18, 223-15 1965. This subsection does not restrict the power of the authority 223-16 to acquire necessary crossing easements and rights-of-way. 223-17 (c) The authority may conserve, store, transport, treat and 223-18 purify, distribute, sell, and deliver water, both surface water and 223-19 groundwater, to persons, corporations, both public and private, 223-20 political subdivisions of the state, and others and may purchase, 223-21 construct, or lease all property, works, and facilities, both 223-22 within and outside the authority, necessary or useful for such 223-23 purposes. 223-24 (d) The authority may acquire water supplies from sources 223-25 within or outside the boundaries of the authority, may sell, 223-26 transport, and deliver water to customers within or outside the 224-1 authority, and may acquire all properties and facilities necessary 224-2 or useful for such purposes. For any or all of such purposes the 224-3 authority may enter into contracts with persons, corporations, both 224-4 public and private, and political subdivisions of the state for 224-5 such periods and on such terms and conditions as the board may 224-6 consider appropriate. 224-7 (e) Subject to the provisions of this chapter, the authority 224-8 may sell, lease, or exchange property of any kind, or any interest 224-9 in property, that is not necessary to the carrying on of the 224-10 business of the authority or whose sale, lease, or exchange, in the 224-11 judgment of the board, is necessary for the exercise of the powers, 224-12 rights, privileges, and functions conferred on the authority by 224-13 this chapter or by Chapters 49 and 54. 224-14 (f) Subject to the provisions of this chapter, the authority 224-15 may acquire by purchase, lease, gift, or otherwise and may 224-16 maintain, use, and operate any property of any kind, or any 224-17 interest in property, within or outside the boundaries of the 224-18 authority, necessary to the exercise of the powers, rights, 224-19 privileges, and functions conferred on the authority by this 224-20 chapter or by Chapters 49 and 54. 224-21 (g) The authority may construct, extend, improve, maintain, 224-22 and reconstruct, cause to be constructed, extended, improved, 224-23 maintained, and reconstructed, and use and operate facilities of 224-24 any kind necessary to the exercise of its powers, rights, 224-25 privileges, and functions. 224-26 (h) The authority may sue and be sued in its corporate name. 225-1 (i) The authority may adopt, use, and alter a corporate 225-2 seal. 225-3 (j) The authority may invest and reinvest its funds. 225-4 (k) The authority may make bylaws for management and 225-5 regulation of its affairs. 225-6 (l) The authority may appoint officers, agents, and 225-7 employees and may prescribe their duties and fix their 225-8 compensation. 225-9 (m) The authority may make contracts and execute instruments 225-10 necessary to the exercise of the powers, rights, privileges, and 225-11 functions conferred by this chapter or Chapters 49 and 54 for such 225-12 term and with such provisions as the board may determine to be in 225-13 the best interests of the authority, including contracts with 225-14 persons including the state, the United States, and any corporation 225-15 or agency of the state or the United States and districts, cities, 225-16 towns, persons, organizations, firms, corporations, or other 225-17 entities as the board considers necessary or proper for or in 225-18 connection with any of its corporate purposes. 225-19 (n) The authority may borrow money for its corporate 225-20 purposes and may borrow money and accept grants from persons, 225-21 including the state, the United States, or any corporation, agency, 225-22 or entity created or designated by the state or the United States, 225-23 and in connection with any such loan or grant may enter into such 225-24 agreements as the state, the United States, or any such 225-25 corporation, agency, or entity may require. The authority may 225-26 issue negotiable bonds or notes for money borrowed, in the manner 226-1 and to the extent provided in this chapter, and may refund or 226-2 refinance any outstanding bonds or notes and make and issue 226-3 negotiable bonds or notes for that purpose in the manner provided 226-4 by this chapter. 226-5 Sec. 259.005. LIMITATIONS ON AUTHORITY. (a) The authority 226-6 may not levy and collect taxes on any property, real, personal, or 226-7 mixed, within the boundaries of the authority and may not issue 226-8 bonds or create indebtedness that would in any way be payable from 226-9 ad valorem taxes levied by the authority on property within the 226-10 authority. 226-11 (b) The authority shall have none of the powers conferred by 226-12 general law for the purposes of the collection, transportation, 226-13 processing, disposal, and control of domestic, industrial, or 226-14 communal wastes and the gathering, conducting, directing, and 226-15 controlling of local storm waters or other local harmful excesses 226-16 of water. 226-17 (c) Nothing in this chapter shall be construed as impairing 226-18 or affecting the powers, authority, rights, or duties of any 226-19 municipal corporation or conservation and reclamation district 226-20 previously or subsequently created within, or partially within, the 226-21 boundaries of the authority or as requiring any such corporation or 226-22 district to contract with the authority for its water supply. 226-23 (d) If the authority in the exercise of the power of eminent 226-24 domain or power of relocation or any other power granted under this 226-25 chapter makes necessary the relocation, raising, rerouting, 226-26 changing the grade, or altering the construction of any highway, 227-1 railroad, electric transmission line, telephone or telegraph 227-2 properties and facilities, or pipeline, all such necessary 227-3 relocation, raising, rerouting, changing the grade, or alteration 227-4 of construction shall be accomplished at the sole expense of the 227-5 authority. In this subsection "sole expense" means the actual cost 227-6 of relocation, raising, rerouting, changing the grade, or 227-7 alteration of construction in providing comparable replacement 227-8 without enhancement of the facilities after deducting the net 227-9 salvage value derived from the old facility. 227-10 (e) Nothing in this chapter shall be construed as conferring 227-11 any water rights on the authority or as setting any priority of 227-12 rights. 227-13 (f) Nothing in this chapter shall be construed as 227-14 authorizing the authority to make any regulation of the withdrawal 227-15 of groundwater. 227-16 (g) The powers, rights, privileges, and functions conferred 227-17 on the authority shall be subject to the continuing rights of 227-18 supervision by the state, which shall be exercised by the 227-19 commission. The authority shall obtain approval of its projects, 227-20 and they shall be supervised as provided by Section 49.182. 227-21 Sec. 259.006. BOARD OF DIRECTORS. (a) The management and 227-22 control of the authority is vested in a board of seven directors. 227-23 The membership of the board must represent the geographic and 227-24 ethnic diversity of the county. Three of the members appointed by 227-25 the commissioners court must be registered professional engineers 227-26 under the laws of Texas. Vacancies on the board, whether by death, 228-1 resignation, or termination of the term of office, are filled by 228-2 appointment by the commissioners court of Galveston County. All 228-3 terms of office are for a period of two years. Terms are 228-4 staggered, with the terms of three directors expiring one year and 228-5 the terms of four directors expiring the next year. 228-6 (b) One director shall be appointed by the commissioners 228-7 court of Galveston County on the recommendation of the city council 228-8 of the City of Galveston. The remaining six directors shall be 228-9 appointed by the commissioners court of Galveston County, with two 228-10 of the directors appointed at large and the remaining four 228-11 directors appointed on the written recommendation of advisory 228-12 committees appointed by the board. Two directors shall be 228-13 recommended by the Mainland Municipal Advisory Committee and two 228-14 directors by the Industrial Advisory Committee. The commissioners 228-15 court of Galveston County is entitled to accept or reject the 228-16 recommendations made to the court by the advisory committees. If a 228-17 recommendation made by an advisory committee is rejected, the 228-18 advisory committee shall submit additional recommendations to the 228-19 court. 228-20 (c) The Industrial Advisory Committee is composed of one 228-21 representative of each industrial customer of the authority. The 228-22 Mainland Municipal Advisory Committee is composed of one 228-23 representative of each municipal or water district customer of the 228-24 authority that uses at least 2 million gallons of water per day. 228-25 The names of the representatives of each of the committees shall be 228-26 submitted to the board by the respective industrial and municipal 229-1 or water district customers. The board shall submit the names of 229-2 the advisory committee members to the commissioners court of 229-3 Galveston County, which shall record the names in the minutes of 229-4 the court. 229-5 Sec. 259.007. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 229-6 DEPOSITS. The bonds of the authority are legal and authorized 229-7 investments for banks, savings banks, trust companies, building and 229-8 loan associations, savings and loan associations, insurance 229-9 companies, fiduciaries, and trustees and for the sinking funds of 229-10 cities, towns, villages, counties, school districts, or other 229-11 political corporations or subdivisions of the state. The bonds are 229-12 eligible to secure the deposit of all public funds of the state and 229-13 all public funds of cities, towns, villages, counties, school 229-14 districts, or other political corporations or subdivisions of the 229-15 state, and the bonds shall be lawful and sufficient security for 229-16 such deposits to the extent of their value when accompanied by all 229-17 unmatured coupons. 229-18 Sec. 259.008. ISSUANCE OF BONDS. (a) The authority may 229-19 issue, from time to time, bonds as authorized by this chapter for 229-20 any corporate purpose. The bonds may be: 229-21 (1) sold for cash, at public or private sale, at such 229-22 price or prices as the board determines, provided that the net 229-23 effective interest rate, calculated in accordance with Chapter 229-24 1204, Government Code, does not exceed 10 percent; 229-25 (2) issued on such terms as the board determines in 229-26 exchange for property of any kind, real, personal, or mixed, or any 230-1 interest in property, that the board determines necessary for any 230-2 corporate purpose; or 230-3 (3) issued in exchange for like principal amounts of 230-4 other obligations of the authority, matured or unmatured. 230-5 (b) The proceeds of the sale of bonds shall be deposited in 230-6 such bank or banks or trust company or trust companies, and shall 230-7 be paid out pursuant to such terms and conditions, as may be agreed 230-8 between the authority and the purchasers of the bonds. 230-9 (c) Bonds of the authority must be authorized by resolution 230-10 of the board and shall bear such date or dates, mature at such time 230-11 or times, bear interest payable annually, semiannually, or 230-12 otherwise, be in such denominations, be in such form, either coupon 230-13 or registered, carry such registration privileges as to principal 230-14 only or as to both principal and interest and as to exchange of 230-15 coupon bonds for registered bonds, or vice versa, and exchange of 230-16 bonds of one denomination for bonds of other denominations, be 230-17 executed in such manner and be payable at such place or places, 230-18 within or outside the state, as the resolution may provide. 230-19 (d) A resolution authorizing bonds may contain provisions, 230-20 which shall be part of the contract between the authority and the 230-21 purchasers or successive holders of the bonds: 230-22 (1) reserving the right to redeem the bonds or 230-23 requiring the redemption of the bonds, at such time or times, in 230-24 such amounts, and at such prices, not exceeding 105 percent of the 230-25 principal amount of the bonds, plus accrued interest, as may be 230-26 provided; 231-1 (2) providing for the setting aside of sinking funds 231-2 or reserve funds and the regulation and disposition of those funds; 231-3 (3) pledging, to secure the payment of the principal 231-4 of and interest on the bonds and of the sinking fund or reserve 231-5 fund payments agreed to be made with respect to the bonds, all or 231-6 any part of the gross or net revenues received by the authority 231-7 with respect to the property, real, personal, or mixed, to be 231-8 acquired or constructed with the bonds or the proceeds of the 231-9 bonds, or all or part of the gross or net revenues received by the 231-10 authority from whatever source derived; 231-11 (4) prescribing the purposes to which the bonds or 231-12 any bonds to be issued later, or the proceeds of bonds, may be 231-13 applied; 231-14 (5) agreeing to set and collect rates and charges 231-15 sufficient to produce revenues adequate to pay (A) all expenses 231-16 necessary to the operation and maintenance and replacements and 231-17 additions to the properties and facilities of the authority; (B) 231-18 the principal of and the interest and premium, if any, on bonds 231-19 issued under this chapter as the bonds, interest, and premiums 231-20 become due and payable; (C) all sinking fund and reserve fund 231-21 payments agreed to be made with respect to the bonds out of such 231-22 revenues as the payments become due and payable, and agreeing to 231-23 fulfill the terms of any agreements made with the holders of the 231-24 bonds or with any person on their behalf and to discharge all other 231-25 lawful obligations of the authority as and when they become due; 231-26 (6) prescribing limitations on the issuance of 232-1 additional bonds and subordinate lien bonds and on the agreements 232-2 that may be made with the purchasers and successive holders of such 232-3 bonds; 232-4 (7) relating to the construction, extension, 232-5 improvement, reconstruction, operation, maintenance, and repair of 232-6 the properties of the authority and carrying insurance on all or 232-7 any part of the properties covering loss or damage or loss of use 232-8 and occupancy resulting from specified risks; 232-9 (8) setting the procedure, if any, by which, if the 232-10 authority so desires, the terms of a contract with the holders of 232-11 the bonds may be amended or abrogated, the amount of the bonds 232-12 whose holders must consent to the amendment or abrogation, and the 232-13 manner in which such consent may be given; 232-14 (9) providing for the execution and delivery by the 232-15 authority to a bank or trust company authorized by law to accept 232-16 trusts, or to the United States or any officer or agency of the 232-17 United States, of indentures and agreements for the benefit of the 232-18 holders of the bonds and such other provisions as may be customary 232-19 in such indentures or agreements; and 232-20 (10) making such other provisions, not inconsistent 232-21 with the provisions of this chapter, as the board may approve. 232-22 (e) The board may declare an emergency in the matter of 232-23 funds not being available to pay the principal of and interest on 232-24 bonds of the authority or to meet any other needs of the authority. 232-25 (f) Bond anticipation notes may bear interest at any rate or 232-26 rates not to exceed 10 percent and must mature within one year of 233-1 their date. The bond anticipation notes so issued will be taken up 233-2 with the proceeds of bonds, or the bonds may be issued and 233-3 delivered in exchange for and in substitution of such notes. 233-4 (g) Before any bonds may be sold or exchanged or substituted 233-5 by the authority, a certified copy of the proceedings of the 233-6 issuance of the bonds, including the form of the bonds, together 233-7 with any other information that the attorney general may require, 233-8 shall be submitted to the attorney general for examination, and if 233-9 the attorney general finds that the bonds have been issued in 233-10 accordance with law, the attorney general shall approve the bonds 233-11 and shall execute a certificate to that effect which shall be filed 233-12 in the office of the comptroller and be recorded in a record kept 233-13 for that purpose. Bonds may not be issued until they have been 233-14 registered by the comptroller, who shall register the bonds if the 233-15 attorney general has filed with the comptroller the certificate 233-16 approving the bonds and the proceedings for the issuance of the 233-17 bonds as provided in this subsection. 233-18 (h) Bonds approved by the attorney general and registered by 233-19 the comptroller and issued in accordance with the proceedings so 233-20 approved are valid and binding obligations of the authority and are 233-21 incontestable for any cause from and after the time of their 233-22 registration. 233-23 (i) If bonds recite that they are secured by a pledge of the 233-24 proceeds of a contract, lease, sale, or other agreement, a copy of 233-25 the contract and the proceedings of the contracting parties will 233-26 also be submitted to the attorney general for examination. If the 234-1 bonds have been authorized and the contract made in compliance with 234-2 law, the attorney general shall approve the bonds and contract, and 234-3 the bonds shall then be registered by the comptroller. When so 234-4 approved, the bonds and the contract are valid and binding and are 234-5 incontestable for any cause from and after the time of their 234-6 registration. 234-7 (j) The authority may issue refunding bonds for the purpose 234-8 of refunding or refinancing any outstanding bonds or notes 234-9 authorized and issued by the authority as provided by this chapter 234-10 or other law and the interest and premium, if any, on the bonds to 234-11 maturity or on any earlier redemption date specified in the 234-12 resolution authorizing the issuance of the refunding bonds. 234-13 Refunding bonds may be issued to refund more than one series of 234-14 outstanding bonds, may combine the pledges of the outstanding bonds 234-15 for the security of the refunding bonds, or may be secured by other 234-16 or additional revenues. All provisions of this chapter with 234-17 reference to the issuance of bonds, the terms and provisions of the 234-18 bonds, their approval by the attorney general, and the remedies of 234-19 the bondholders are applicable to refunding bonds. Refunding bonds 234-20 shall be registered by the comptroller on surrender and 234-21 cancellation of the bonds to be refunded, but in lieu of that 234-22 procedure, the resolution authorizing the issuance of refunding 234-23 bonds may provide that the refunding bonds shall be sold and the 234-24 proceeds of the sale deposited at the places at which the original 234-25 bonds are payable, in which case the refunding bonds may be issued 234-26 in an amount sufficient to pay the interest and premium, if any, on 235-1 the original bonds to their maturity date or specified earlier 235-2 redemption date, and the comptroller shall register the refunding 235-3 bonds without concurrent surrender and cancellation of the original 235-4 bonds. The authority may also refund any outstanding bonds in the 235-5 manner provided by any applicable general law. 235-6 (k) All bonds issued by the authority pursuant to the 235-7 provisions of this chapter are investment securities within the 235-8 meaning of Chapter 8, Business & Commerce Code. 235-9 (l) This chapter, without reference to other statutory 235-10 provisions, constitutes full authority for the authorization and 235-11 issuance of bonds under this chapter, and no other Act or law with 235-12 regard to the authorization or issuance of obligations or the 235-13 deposit of the proceeds of the obligations, or in any way impeding 235-14 or restricting the carrying out of the acts authorized by this 235-15 chapter, may be construed as applying to any proceedings taken 235-16 under this chapter or acts done pursuant to this chapter. 235-17 Sec. 259.009. CHARGES, FEES, AND TOLLS. If revenues are 235-18 pledged to the payment of bonds issued by the authority, the board 235-19 shall set, maintain, and enforce charges, fees, or tolls for 235-20 services rendered by properties and facilities, whose revenues have 235-21 been pledged, at rates and amounts at least sufficient to comply 235-22 with and carry out the covenants and provisions contained in the 235-23 resolution authorizing the issuance of the bonds. The authority 235-24 may impose a penalty for failure to pay a charge, fee, or toll when 235-25 due. 235-26 Sec. 259.010. AUTHORITY DEPOSITORY. The board shall from 236-1 time to time by resolution designate one or more banks to serve as 236-2 the authority's depository, and all funds of the authority shall be 236-3 secured in the manner provided for the security of county funds. 236-4 CHAPTER 260. LAVACA-NAVIDAD RIVER AUTHORITY 236-5 Sec. 260.001. CREATION. (a) A conservation and reclamation 236-6 district to be known as the "Lavaca-Navidad River Authority" is 236-7 created. The authority is a governmental agency and body politic 236-8 and corporate. 236-9 (b) The authority is created under and is essential to 236-10 accomplish the purposes of Section 59, Article XVI, Texas 236-11 Constitution. 236-12 (c) The authority may exercise the rights, privileges, and 236-13 functions provided by Section 59, Article XVI, Texas Constitution, 236-14 and this chapter, including the control, storage, preservation, and 236-15 distribution of the storm waters, floodwaters, and the waters of 236-16 the rivers and streams of Jackson County and their tributaries for 236-17 domestic, municipal, flood control, irrigation, and other useful 236-18 purposes, the reclamation and drainage of the overflow land of 236-19 Jackson County, and the conservation of forests, and the authority 236-20 may aid in the protection and promotion of navigation on the 236-21 navigable waters by regulating the floodwaters and storm waters 236-22 that flow into the navigable streams. 236-23 Sec. 260.002. DEFINITIONS. In this chapter: 236-24 (1) "Authority" means the Lavaca-Navidad River 236-25 Authority. 236-26 (2) "Board" means the board of directors of the 237-1 authority. 237-2 (3) "Director" means a member of the board. 237-3 Sec. 260.003. BOUNDARIES. The boundaries of the authority 237-4 are coextensive with the boundaries of Jackson County and the 237-5 authority includes all of the lands and other property, both real 237-6 and personal, within the boundaries of Jackson County. 237-7 Sec. 260.004. BOARD OF DIRECTORS; DIRECTOR BONDS. (a) The 237-8 management and control of the authority shall be vested in a board 237-9 consisting of nine directors. 237-10 (b) A director must reside within the authority and must be 237-11 a freehold property taxpayer and a legal voter of the state. 237-12 (c) The governor shall appoint the directors with the advice 237-13 and consent of the senate. 237-14 (d) Directors serve for staggered terms of six years, with 237-15 the terms of one-third of the directors expiring on May 1 of each 237-16 odd-numbered year, and hold office until their successors are 237-17 appointed and have qualified. 237-18 (e) The governor shall appoint three directors during the 237-19 month of April of each odd-numbered year to succeed the directors 237-20 whose terms of office are to expire on the following May 1. If a 237-21 vacancy on the board occurs because of the resignation or death of 237-22 a director or otherwise, the governor shall fill the vacancy for 237-23 the unexpired term by the appointment of a successor. 237-24 (f) A director shall qualify by taking the official oath and 237-25 filing a good and sufficient bond with the secretary of state in an 237-26 amount set by resolution of the board, payable to the authority, 238-1 and conditioned on the faithful performance of the person's 238-2 official duties as director. 238-3 Sec. 260.005. BOARD MEETINGS; OFFICERS; VOTING REQUIREMENTS. 238-4 (a) The board shall meet at such times and places as it shall 238-5 designate and shall hold regular and special meetings as it 238-6 determines appropriate. 238-7 (b) The board shall elect from among its members a 238-8 president, a vice president, a secretary, and a treasurer. The 238-9 offices of secretary and treasurer may be combined into one office 238-10 of secretary-treasurer on a majority vote of the board. 238-11 (c) Except for the original board, the officers serve for a 238-12 term of one year, and the board shall elect the officers annually 238-13 during the month of May. 238-14 (d) Special meetings of the board may be called by the 238-15 president or by any three members. 238-16 (e) A majority of the members of the board constitutes a 238-17 quorum to transact any and all business. A majority vote of the 238-18 members present at any regular or special meeting is sufficient for 238-19 the adoption of any proceedings or for the taking of any official 238-20 action. 238-21 Sec. 260.006. RECORDS; ACCOUNTS; AUTHORITY OFFICE. (a) The 238-22 board shall keep complete and accurate records and accounts 238-23 conforming to approved methods of bookkeeping and shall preserve 238-24 its minutes, contracts, records, notices, accounts, receipts, and 238-25 records of all kinds in a fireproof vault or safe. 238-26 (b) The authority shall establish and maintain an office for 239-1 the conduct of authority business within the authority. 239-2 Sec. 260.007. DIRECTOR FEES. Each director is entitled to 239-3 receive fees of office of not more than $100 per day, or the amount 239-4 permitted under Section 49.060, for each day served plus actual 239-5 traveling expenses, provided that the compensation and expenses are 239-6 approved by a vote of the board, and provided further that no 239-7 director receives more than $6,000 per year or the amount permitted 239-8 under Section 49.060. Each director shall file with the secretary 239-9 a statement showing the amount due the director each month or as 239-10 soon after each month as practicable, before a check is issued for 239-11 the services and expenses. 239-12 Sec. 260.008. CONFLICT OF INTEREST; PENALTY. A director, 239-13 engineer, officer, or employee of the authority may not either for 239-14 the person's own self or as an agent for anyone else, benefit 239-15 directly or indirectly by reason of any sale, purchase, or contract 239-16 entered into by the board. If a director, engineer, officer, or 239-17 employee of the authority directly or indirectly becomes interested 239-18 in a sale, purchase, or contract, the person is guilty of a 239-19 misdemeanor and on conviction entered into by the board shall be 239-20 punished by a fine not to exceed $1,000 or by confinement in the 239-21 county jail for not less than six months or more than one year, or 239-22 by both a fine and imprisonment. 239-23 Sec. 260.009. SURETY BONDS. All bonds required to be given 239-24 by officers and employees of the authority shall be executed by a 239-25 surety company authorized to do business in the state. The 239-26 authority may pay the premium on the bonds. 240-1 Sec. 260.010. REFERENCES TO FORMER NAME OF AUTHORITY. In 240-2 all laws a reference to Jackson County Flood Control District shall 240-3 mean and be interpreted to mean Lavaca-Navidad River Authority. 240-4 Lavaca-Navidad River Authority has all rights, powers, and duties 240-5 conferred or imposed by law on the Jackson County Flood Control 240-6 District and all rights, powers, and duties conferred by or assumed 240-7 in all contracts to which the Jackson County Flood Control District 240-8 is a party. 240-9 Sec. 260.011. POWERS OF THE AUTHORITY. (a) Except as 240-10 expressly limited by this chapter, the authority may exercise all 240-11 powers, rights, privileges, and functions provided by this chapter 240-12 or conferred by general or special law on any flood control 240-13 district or districts created pursuant to, or operating under, 240-14 Section 59, Article XVI, Texas Constitution, including the power: 240-15 (1) to acquire by gift, devise, purchase, 240-16 condemnation, or otherwise lands and rights and interests in lands 240-17 and rights and any other character of property necessary or useful 240-18 for any of the purposes provided in Section 260.001; 240-19 (2) to lease, sell, trade, or otherwise dispose of 240-20 land or other property or rights in land or property when the land 240-21 or property or rights in land or property are no longer needed for 240-22 the purposes provided in Section 260.001; 240-23 (3) to appoint a manager and other officers, agents, 240-24 and employees, including an engineer or engineers and counsel, and 240-25 to prescribe their duties and set their compensation; 240-26 (4) to authorize the authority's officers, employees, 241-1 or agents to go on any lands lying within the authority for the 241-2 purpose of making surveys and examining the lands in connection 241-3 with any authority plans or projects and for any other lawful 241-4 purpose within the scope of its authority; 241-5 (5) to devise plans and construct works to lessen and 241-6 control floods or to reclaim lands in the authority; to prevent the 241-7 deposit of silt in navigable streams; to remove obstructions, 241-8 natural or artificial, from streams and watercourses; to regulate 241-9 the flow of surface waters and floodwaters; to provide drainage; 241-10 and to accomplish any other purpose within the scope of its 241-11 authority; 241-12 (6) to borrow money for any of the purposes, 241-13 consistent with the constitution, provided by this chapter or by 241-14 general law; to borrow money and accept grants from the United 241-15 States, or from any corporation or agency created or designated by 241-16 the United States, and in connection with any such loan or grant to 241-17 enter into such agreements as the United States or the corporations 241-18 or agencies may require; and to make and issue negotiable bonds, 241-19 including bonds to finance capital projects, which may be tax 241-20 bonds, revenue bonds, or combination tax-revenue bonds, for such 241-21 borrowed money in the manner and to the extent provided in this 241-22 chapter; 241-23 (7) to cooperate or contract with any agency or 241-24 political subdivision of the state or any city or town within the 241-25 boundaries of the authority with regard to surveys, the acquisition 241-26 of land or rights-of-way, the construction or maintenance of 242-1 projects or parts of projects, or the financing of such surveys, 242-2 acquisitions, or construction or maintenance in connection with any 242-3 matter within the scope of this chapter; 242-4 (8) to sue and be sued in its corporate name; 242-5 (9) to adopt, use, and alter a corporate seal; 242-6 (10) to make bylaws, rules, and regulations for the 242-7 management and regulation of the authority's affairs; 242-8 (11) to make contracts and execute instruments 242-9 necessary or convenient to the exercise of the powers, rights, 242-10 privileges, and functions conferred on the authority by this 242-11 chapter; and 242-12 (12) to do anything necessary or proper to carry into 242-13 effect any of the foregoing powers. 242-14 (b) The authority may own, operate, and construct 242-15 facilities, including facilities for water supply and treatment, 242-16 wastewater treatment and distribution, solid waste, power 242-17 generation, flood monitoring, flood warning and control, water 242-18 quality protection, including non-point source pollution control 242-19 measures, and may monitor and collect data to support these 242-20 functions. 242-21 (c) The authority may construct projects outside of its area 242-22 of jurisdiction. 242-23 (d) The authority may develop and provide groundwater. 242-24 (e) The authority may provide for emergency communication 242-25 support to other political subdivisions, peace officer functions 242-26 around lakes, aquatic weed control and development, and the 243-1 operation and maintenance of parks and recreational facilities. 243-2 Sec. 260.012. EMINENT DOMAIN. (a) If the authority, in the 243-3 exercise of the power of eminent domain or power of relocation, or 243-4 any other power granted under this chapter, makes necessary the 243-5 relocation, raising, rerouting, changing the grade, or altering the 243-6 construction of any highway, railroad, electric transmission line, 243-7 telephone or telegraph properties and facilities, or pipeline, all 243-8 such necessary relocation, raising, rerouting, changing the grade, 243-9 or alteration of construction shall be accomplished at the sole 243-10 expense of the authority. 243-11 (b) The authority may not exercise the power of eminent 243-12 domain beyond the limits of Jackson County. 243-13 Sec. 260.013. AUTHORITY DEPOSITORY. The board shall select 243-14 a depository or depositories of the authority under the general 243-15 provisions provided by law for the selection of depositories for 243-16 counties in this state. All checks or vouchers of the authority 243-17 shall be signed by two directors, by one director and an officer or 243-18 employee of the authority, or by two of the authority's employees 243-19 designated by the board, as may be provided in an order or 243-20 resolution adopted by the board. 243-21 Sec. 260.014. AD VALOREM TAX. The authority may levy and 243-22 cause to be assessed and collected for the maintenance, operation, 243-23 and upkeep of the authority and the facilities, properties, and 243-24 improvements constructed or acquired by the authority an annual ad 243-25 valorem tax not to exceed 15 cents on each $100 valuation of 243-26 taxable property within the authority, whether real, personal, 244-1 mixed, or otherwise, if the levying of the tax is first submitted 244-2 to the qualified voters of the authority at an election called and 244-3 held as provided by this chapter and the proposition is adopted by 244-4 a majority vote of those voting at the election. Subsequent 244-5 elections may be ordered and held for the purpose of increasing, 244-6 reducing, or abating the tax; provided, however, that the tax shall 244-7 never exceed the maximum prescribed by this section. 244-8 Sec. 260.015. ISSUANCE OF BONDS. (a) For the purpose of 244-9 providing funds for any of the purposes provided by this chapter or 244-10 any other laws relating to flood control districts, the board may 244-11 issue negotiable bonds for and on behalf of the authority secured 244-12 by: 244-13 (1) a pledge of and payable from the net revenues 244-14 derived from the operation of all or a designated part of the 244-15 improvements and facilities of the authority then in existence or 244-16 to be constructed or acquired, with the duty on the board to charge 244-17 and collect fees, tolls, and charges, while the bonds are 244-18 outstanding, sufficient to pay all maintenance and operation 244-19 expenses of the improvements and facilities, the income of which is 244-20 pledged, the interest on the bonds as it accrues, and the principal 244-21 of the bonds as it matures and to make any and all other payments 244-22 as may be prescribed in the bond order or resolution; 244-23 (2) a pledge of and payable from an ad valorem tax on 244-24 all taxable property within the authority under Section 59, Article 244-25 XVI, Texas Constitution, with the duty on the board, each year 244-26 while the bonds or any part of them are outstanding, to levy and 245-1 cause to be assessed and collected a tax sufficient to pay the 245-2 interest on the bonds as it accrues and the principal of the bonds 245-3 as it matures; or 245-4 (3) a combination of the methods prescribed under 245-5 Subdivisions (1) and (2), whereby the bonds are supported and 245-6 secured by an ad valorem tax, with the duty on the board while the 245-7 bonds are outstanding, to charge and collect fees, tolls, and 245-8 charges, so that, in the manner prescribed in the bond order or 245-9 resolution, the amount of tax to be collected from time to time may 245-10 be reduced or abated to the extent that the revenues from the 245-11 operation of the improvements and facilities, whose income is 245-12 pledged, are sufficient to meet the requirements for maintenance 245-13 and operation of the improvements and facilities and to provide 245-14 funds for the bonds as prescribed in the bond order or resolution. 245-15 (b) In this section, "net revenues" means the gross revenues 245-16 derived from the operation of the improvements and facilities of 245-17 the authority, whose income is pledged to the payment of the bonds, 245-18 less the reasonable expense of maintaining and operating the 245-19 improvements and facilities. The maintenance and operation 245-20 expenses include necessary repair, upkeep, and insurance of the 245-21 improvements and facilities. 245-22 (c) In the resolution or order adopted by the board 245-23 authorizing the issuance of bonds payable in whole or in part from 245-24 net revenues, the board may provide for the flow of funds, the 245-25 establishment and maintenance of an interest and sinking fund, a 245-26 reserve fund, and other funds and may make additional covenants 246-1 with respect to the bonds and the pledged revenues and the 246-2 operation, maintenance, and upkeep of the improvements and 246-3 facilities whose income is pledged, including provision for the 246-4 leasing of all or a part of those improvements and facilities and 246-5 the use or pledge of funds derived from leases of those 246-6 improvements and facilities, as the board determines appropriate. 246-7 The resolution or order may also prohibit the further issuance of 246-8 bonds or other obligations payable from the pledged net revenues or 246-9 may reserve the right to issue additional bonds to be secured by a 246-10 pledge of and payable from the net revenues on a parity with, or 246-11 subordinate to, the lien and pledge in support of the bonds being 246-12 issued, subject to the conditions set forth in the resolution or 246-13 order. The resolution or order may contain, within the discretion 246-14 of the board, other provisions and covenants not prohibited by the 246-15 constitution or by this chapter, and the board may adopt and cause 246-16 to be executed any other proceedings or instruments necessary or 246-17 convenient in the issuance of the bonds. 246-18 (d) Bonds payable solely from net revenues may be issued by 246-19 resolution or order of the board without an election. Bonds wholly 246-20 or partially supported by taxes, except refunding bonds, may not be 246-21 issued unless the bonds have been authorized at an election called 246-22 by the board at which a majority of the duly qualified resident 246-23 electors of the authority voting at the election have voted in 246-24 favor of the issuance of the bonds. An election must be held not 246-25 less than 14 days after the date of adoption of the order or 246-26 resolution calling the election, and notice of the election must be 247-1 given by publication in a newspaper of general circulation within 247-2 the authority, on the same day in each of two successive weeks, of 247-3 a substantial copy of the order or resolution calling the election, 247-4 the first publication to be not less than 14 days prior to the date 247-5 of the election. No other notice of election is required. If the 247-6 bonds are to be payable solely from taxes, the proposition to 247-7 appear on the ballot shall be: "For the bonds and the levy of 247-8 taxes in payment thereof; and the contrary thereof." If the bonds 247-9 are to be payable both from net revenues and taxes, the proposition 247-10 to appear on the ballot shall be: "For the bonds, the pledge of 247-11 net revenues, and the levy of taxes adequate to provide for the 247-12 payment thereof; and the contrary thereof." 247-13 (e) Bonds must be authorized by resolution or order of the 247-14 board, be issued in the name of the authority, be signed by the 247-15 president and attested by the secretary, and have the seal of the 247-16 authority impressed on them; provided, however, that the resolution 247-17 or order authorizing the bonds may provide for the bonds to be 247-18 signed by the facsimile signatures of the president and secretary, 247-19 either or both, and for the seal of the authority on the bonds to 247-20 be a printed facsimile seal of the seal of the authority; and 247-21 provided further, that the interest coupons attached to the bonds 247-22 may also be executed by the facsimile signatures of the officers. 247-23 Bonds must mature, serially or otherwise, in not to exceed 40 years 247-24 from their date or dates, and may be sold at a price and under 247-25 terms determined by the board to be the most advantageous 247-26 reasonably obtainable, provided that the interest cost to the 248-1 authority, calculated by the use of standard bond interest tables 248-2 currently in use by insurance companies and investment houses, does 248-3 not exceed six percent per year. Within the discretion of the 248-4 board, bonds may be callable prior to maturity at the times and at 248-5 the prices prescribed in the resolution or order authorizing the 248-6 bonds. Bonds may be made registrable as to principal or as to both 248-7 principal and interest. 248-8 (f) After bonds have been authorized by the authority, the 248-9 bonds and the record relating to their issuance shall be submitted 248-10 to the attorney general for examination as to the validity of the 248-11 bonds and the record. If the attorney general approves the bonds, 248-12 the bonds shall be registered by the comptroller. After the bonds 248-13 have been approved by the attorney general, registered by the 248-14 comptroller, and delivered to the purchasers, the bonds are 248-15 incontestable except for forgery or fraud. If bonds payable in 248-16 whole or in part from net revenues recite that they are secured 248-17 partially or otherwise by a pledge of the proceeds of a contract or 248-18 contracts made between the authority and another party or parties, 248-19 public agency or otherwise, a copy of the contract or contracts and 248-20 the proceedings authorizing the contract or contracts shall be 248-21 submitted to the attorney general along with the bond record. 248-22 Approval by the attorney general of the bonds constitutes an 248-23 approval of the contract or contracts, and after the approval the 248-24 contract or contracts are incontestable except for forgery or 248-25 fraud. 248-26 (g) From the proceeds of sale of bonds, the board may 249-1 appropriate or set aside an amount for the payment of interest 249-2 expected to accrue during the period of construction of the 249-3 improvements or facilities, an amount or amounts to establish a 249-4 reserve fund or funds as provided in the bond order or resolution, 249-5 and an amount necessary to pay all expenses incurred and to be 249-6 incurred in issuance, sale, and delivery of the bonds. 249-7 Sec. 260.016. REFUNDING BONDS. (a) The board may issue 249-8 refunding bonds for the purpose of refunding any outstanding bonds 249-9 of the authority and accrued interest on the bonds. Refunding 249-10 bonds may be issued to refund more than one series or issue of 249-11 outstanding bonds payable wholly from taxes. Refunding bonds may 249-12 be issued to refund more than one series or issue of outstanding 249-13 bonds payable in whole or in part from net revenues and to combine 249-14 pledges for the outstanding bonds for the security of the refunding 249-15 bonds, and the refunding bonds may be secured by other and 249-16 additional revenues; provided, however, that bonds payable solely 249-17 from net revenues may not be refunded into bonds secured by taxes 249-18 unless authorized by a majority vote of the qualified voters voting 249-19 at an election called and held in the same manner as bond 249-20 elections; and provided further, that such refunding may not impair 249-21 the contract rights of the holders of any of the outstanding bonds 249-22 that are not being refunded. 249-23 (b) Refunding bonds must be authorized by resolution or 249-24 order of the board and must be executed and mature as is provided 249-25 in this chapter for original bonds. Refunding bonds bear interest 249-26 at the same or a lower rate than that of the bonds refunded unless 250-1 it is shown mathematically that a saving will result in the total 250-2 amount of interest to be paid. 250-3 (c) Refunding bonds shall be approved by the attorney 250-4 general as in the case of original bonds and shall be registered by 250-5 the comptroller on surrender and cancellation of the bonds to be 250-6 refunded, but in lieu of this procedure, the resolution or order 250-7 authorizing the issuance of the refunding bonds may provide that 250-8 the refunding bonds shall be sold and the proceeds of the sale 250-9 deposited in the place or places where the original bonds are 250-10 payable, in which case the refunding bonds may be issued in an 250-11 amount sufficient to pay the interest on the original bonds to 250-12 their option or maturity date and the comptroller shall register 250-13 the refunding bonds without the surrender and cancellation of the 250-14 original bonds. Refunding bonds, after they have been approved by 250-15 the attorney general and registered by the comptroller, are 250-16 incontestable except for forgery or fraud. 250-17 Sec. 260.017. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 250-18 DEPOSITS. (a) Bonds issued under this chapter are negotiable 250-19 instruments under the laws of the state, and the bonds are legal 250-20 and authorized investments for banks, savings banks, trust 250-21 companies, building and loan associations, insurance companies, 250-22 fiduciaries, trustees, and guardians and for the sinking funds of 250-23 cities, towns, villages, counties, school districts, or other 250-24 political corporations or subdivisions of the state. 250-25 (b) The bonds are eligible to secure the deposit of public 250-26 funds of the state and public funds of cities, towns, villages, 251-1 counties, school districts, or other political corporations or 251-2 subdivisions of the state; and the bonds are lawful and sufficient 251-3 security for such deposits to the extent of their face value when 251-4 accompanied by all unmatured coupons. 251-5 Sec. 260.018. MAINTENANCE TAX ELECTIONS. (a) All 251-6 maintenance tax elections shall be called and held as provided in 251-7 Section 260.015(d) of this chapter relating to elections for bonds 251-8 payable in whole or in part from taxes, and the following language 251-9 shall appear on the ballot in maintenance tax elections: "For 251-10 maintenance tax; and the contrary thereof." 251-11 (b) The regular voting or election precincts established by 251-12 the commissioners court of Jackson County for countywide elections 251-13 shall be the voting or election precincts for all elections called 251-14 and held under the provisions of this chapter. Except as modified 251-15 in this chapter, the Election Code shall apply to and govern all 251-16 elections called and held under the provisions of this section. 251-17 Sec. 260.019. TAXATION. (a) The board shall levy all taxes 251-18 of the authority, whether maintenance taxes or taxes to support 251-19 bonds, and the tax rolls of Jackson County shall be the tax rolls 251-20 of the authority. 251-21 (b) The authority shall furnish the officer responsible for 251-22 assessing and collecting taxes for the authority a certified copy 251-23 of each resolution or order adopted by the board in which taxes are 251-24 levied, and that officer shall assess and collect the taxes at the 251-25 same time as county taxes are assessed and collected and shall turn 251-26 the proceeds of such taxes, when collected, over to the authority 252-1 or its depository. 252-2 (c) All laws of the state relating to the assessing and 252-3 collecting of state and county taxes shall be applied to the 252-4 assessment and collection of current and delinquent taxes of the 252-5 authority, to the extent that such laws are applicable. 252-6 (d) The board may contract as provided by Chapter 791, 252-7 Government Code, with the board of directors of the Jackson County 252-8 Appraisal District for the performance of duties relating to 252-9 assessment or collection of taxes on behalf of the authority. The 252-10 board may contract with any other political subdivision of the 252-11 state having authority to assess or collect taxes in Jackson County 252-12 for the assessment or collection of taxes on behalf of the 252-13 authority. 252-14 Sec. 260.020. POWERS OF WATER CONTROL AND IMPROVEMENT 252-15 DISTRICTS. (a) Except as limited by this chapter, the authority 252-16 and the board shall have, with respect to the powers and privileges 252-17 granted under this chapter, all the powers and privileges granted 252-18 to water control and improvement districts and the board of 252-19 directors of such districts by Chapters 49 and 51. 252-20 (b) In addition to all other vested powers, the authority 252-21 may exercise all powers, rights, privileges, and functions that are 252-22 conferred by general or special law on water improvement districts 252-23 and water control and improvement districts created pursuant to 252-24 Section 59, Article XVI, Texas Constitution. 252-25 Sec. 260.021. CONSTRUCTION. The terms and provisions of 252-26 this chapter shall be liberally construed to effectuate the 253-1 purposes set forth in this chapter. 253-2 Sec. 260.022. FINDING OF BENEFIT. All property, both real 253-3 and personal, within the authority and within the state will 253-4 benefit from the authority and from the improvements and facilities 253-5 acquired or constructed and to be acquired or constructed under the 253-6 provisions of this chapter. 253-7 CHAPTER 261. LOWER COLORADO RIVER AUTHORITY 253-8 Sec. 261.001. CREATION. (a) A conservation and reclamation 253-9 district to be known as the "Lower Colorado River Authority" is 253-10 created. The authority is a governmental agency and a body politic 253-11 and corporate. 253-12 (b) The authority is created under and is essential to 253-13 accomplish the purposes of Section 59, Article XVI, Texas 253-14 Constitution, including the control, storing, preservation, and 253-15 distribution of the waters of the Colorado River and its 253-16 tributaries within the boundaries of the authority for irrigation, 253-17 generation of electric energy and power, and other useful purposes; 253-18 the reclamation and irrigation of arid, semiarid, and other lands 253-19 needing irrigation; the development of parks on lands owned or 253-20 hereafter acquired by the authority; and the conservation and 253-21 development of the forests, water, and electric power in the state. 253-22 (c) Nothing in this chapter or in any other law shall be 253-23 construed as authorizing the authority to levy or collect taxes or 253-24 to create any indebtedness payable out of taxes or in any way to 253-25 pledge the credit of the state. 253-26 Sec. 261.002. DEFINITIONS. In this chapter: 254-1 (1) "Authority" means the Lower Colorado River 254-2 Authority. 254-3 (2) "Board" means the board of directors of the 254-4 authority. 254-5 (3) "Director" means a member of the board. 254-6 Sec. 261.003. TERRITORY. The authority consists of the 254-7 territory included within the boundaries of the counties of Blanco, 254-8 Burnet, Llano, Travis, Bastrop, Fayette, Colorado, Wharton, San 254-9 Saba, and Matagorda. 254-10 Sec. 261.004. POWERS AND DUTIES. (a) Except as expressly 254-11 limited by this chapter, the authority has all the powers, rights, 254-12 privileges, and functions conferred by general law on any district 254-13 or districts created under Section 59, Article XVI, Texas 254-14 Constitution, and as provided by this section. 254-15 (b) The authority may control, store, and preserve, within 254-16 the boundaries of the authority, the waters of the Colorado River 254-17 and its tributaries and the lands of the authority for any useful 254-18 purpose and may use, distribute, and sell those waters, within the 254-19 boundaries of the authority or within the boundaries of the 254-20 watershed that contributes inflow to the Colorado River below the 254-21 intersection of Coleman, Brown, and McCulloch counties, for any 254-22 such purpose. 254-23 (c) The authority may develop and generate water power and 254-24 electric energy within the boundaries of the authority and may 254-25 distribute and sell water power and electric energy, within or 254-26 outside the boundaries of the authority. 255-1 (d) The authority may prevent or aid, within the boundaries 255-2 of the authority, in the prevention of damage to person or property 255-3 from the waters of the Colorado River and its tributaries. 255-4 (e) The authority may forest and reforest and aid in the 255-5 foresting and reforesting of the watershed area of the Colorado 255-6 River and its tributaries, within the boundaries of the authority, 255-7 and may prevent and aid in the prevention of soil erosion and 255-8 floods within the watershed area. 255-9 (f) The authority may acquire by purchase, lease, or gift or 255-10 in any other manner provided by law and may maintain, use, and 255-11 operate any property of any kind, real, personal, or mixed, or any 255-12 interest in property, within or outside the boundaries of the 255-13 authority that is necessary or convenient to the exercise of the 255-14 powers, rights, privileges, and functions conferred on the 255-15 authority by this chapter. 255-16 (g) The authority may acquire by condemnation property of 255-17 any kind, real, personal, or mixed, or any interest in property, 255-18 within or outside the boundaries of the authority, other than 255-19 property or any interest in property outside the boundaries of the 255-20 authority owned by any body politic, that is necessary or 255-21 convenient to the exercise of the powers, rights, privileges, and 255-22 functions conferred on the authority by this chapter. The 255-23 authority shall exercise the condemnation power in the manner 255-24 provided by general law with respect to condemnation or, at the 255-25 option of the authority, in the manner provided by state law 255-26 relating to condemnation by districts organized under general law 256-1 pursuant to Section 59, Article XVI, Texas Constitution. 256-2 (h) Subject to the provisions of this chapter, the authority 256-3 may sell or otherwise dispose of property of any kind, real, 256-4 personal, or mixed, or any interest in the property, that is not 256-5 necessary to the carrying on of the business of the authority. 256-6 (i) The authority may overflow and inundate within the 256-7 boundaries of the authority any public lands and public property 256-8 and may require the relocation of roads, pipelines, transmission 256-9 lines, railroads, cemeteries, and highways in the manner and to the 256-10 extent permitted to districts organized under general law pursuant 256-11 to Section 59, Article XVI, Texas Constitution. 256-12 (j) The authority may construct, extend, improve, maintain, 256-13 and reconstruct, cause to be constructed, extended, improved, 256-14 maintained, and reconstructed, and use and operate facilities of 256-15 any kind necessary or convenient to the exercise of its powers, 256-16 rights, privileges, and functions. 256-17 (k) The authority may sue and be sued in its corporate name. 256-18 (l) The authority may adopt and use a corporate seal. 256-19 (m) The authority may make bylaws for the management and 256-20 regulation of its affairs. 256-21 (n) The authority may appoint officers, agents, and 256-22 employees, prescribe their duties, and set their compensation. 256-23 (o) The authority may make contracts and execute instruments 256-24 necessary or convenient to the exercise of the powers, rights, 256-25 privileges, and functions conferred on the authority by this 256-26 chapter or permitted by general law. 257-1 (p) The authority may borrow money for its corporate 257-2 purposes on notes or other written evidence of indebtedness for a 257-3 period not to exceed five years as may be authorized from time to 257-4 time by an affirmative vote of 12 members of the board, which loans 257-5 or indebtedness shall be repaid from the proceeds of bonds of the 257-6 authority at the next bond offering. The authority may borrow 257-7 money and accept grants from the United States, the state, or any 257-8 corporation or agency created or designated by the United States or 257-9 the state and, in connection with any such loans or grants, may 257-10 enter into such agreements as the United States, the state, or the 257-11 corporation or agency may require. The authority may make and 257-12 issue negotiable bonds for money borrowed in the manner provided by 257-13 Sections 261.013, 261.014, and 261.015. Nothing in this chapter 257-14 shall authorize the issuance of any bonds, notes, or other 257-15 evidences of indebtedness of the authority except as specifically 257-16 provided by this chapter. 257-17 (q) The authority may provide for the study, correcting, and 257-18 control of both artificial and natural pollution, including 257-19 organic, inorganic, and thermal, of all ground or surface water of 257-20 the Colorado River and its tributaries within the boundaries of the 257-21 authority. The authority may promulgate by ordinance rules and 257-22 regulations with regard to the pollution, both artificial and 257-23 natural, and possesses police power to enforce its rules and 257-24 regulations. The authority may provide a reasonable penalty for 257-25 the violation of any rule or regulation, which shall be cumulative 257-26 of any penalties fixed by the general law of this state. A penalty 258-1 under this subsection may not exceed the limit for penalties 258-2 provided by this chapter. An ordinance enacted under this section 258-3 may not be promulgated in any county or counties outside the 258-4 existing boundaries of the authority. 258-5 (r) As a necessary aid to the conservation, control, 258-6 preservation, purification, and distribution of surface waters and 258-7 groundwaters of the Colorado River and its tributaries within the 258-8 boundaries of the authority, the authority may have the power to 258-9 construct, own, operate, maintain, or otherwise provide sewage 258-10 gathering, treatment, and disposal services, including waste 258-11 disposal services, and may make contracts regarding those services 258-12 with the United States, the state, counties, municipalities, and 258-13 others. The authority shall charge the actual cost of those 258-14 services. 258-15 (s) The authority may develop and manage parks, recreational 258-16 facilities, and natural science laboratories and may promote the 258-17 preservation of fish and wildlife within the boundaries of the 258-18 authority. The authority may negotiate contracts with any county, 258-19 municipality, municipal corporation, person, firm, corporation, 258-20 nonprofit organization, or state or federal agency for the 258-21 operation and maintenance of any such park, recreational facility, 258-22 or natural science laboratory. The preservation of fish and 258-23 wildlife shall be in accordance with the rules and regulations of 258-24 the Parks and Wildlife Commission. Notwithstanding any other 258-25 provisions of this chapter, the board may charge and collect 258-26 reasonable entrance, gate, or use fees for the development, 259-1 management, and use of parks and recreational facilities developed 259-2 in whole or in part by the authority. 259-3 (t) The authority may enter into agreements authorized by 259-4 Chapter 163, Utilities Code, to acquire, install, construct, 259-5 operate, enlarge and make additions to, and own and operate 259-6 electric power and energy generating facilities as provided by that 259-7 chapter, in joint ownership with others, either as cotenants or 259-8 under such other arrangements as may be approved by a three-fourths 259-9 vote of the statutory membership of the board. In accordance with 259-10 and subject to the terms of the agreements, if any, the authority 259-11 may sell or otherwise dispose of any or all of its interest in the 259-12 jointly owned electric power and generating facilities. This 259-13 subsection does not apply to generating facilities or other 259-14 property wholly owned by the authority. 259-15 (u) The authority may do any and all other acts or things 259-16 necessary or convenient, including controlling the use of the 259-17 surface of any lake or island located in such lake developed by the 259-18 authority and levying a charge for the commercial use of the lake 259-19 or island, to the exercise of all powers, rights, privileges, 259-20 authority, or functions conferred on the authority by the 259-21 constitution, this chapter, or any law. 259-22 (v) The authority may enter into contracts with the state 259-23 through the General Services Commission providing for direct sale 259-24 by the authority of electrical power to the state for use in 259-25 buildings or other facilities owned, leased, or rented by the state 259-26 in Travis County. 260-1 Sec. 261.005. LIMITATIONS OF AUTHORITY. (a) The authority 260-2 may not use for irrigation purposes any water under any permit or 260-3 permits acquired from any other company or person unless such use 260-4 is expressly authorized by, and granted to the authority by, the 260-5 commission or its predecessor agency under authority of law. In 260-6 considering subsequent applications by the authority, the 260-7 commission shall at all times consider the needs of the people 260-8 living within and on lands lying within the watershed of the 260-9 Colorado River and its tributaries above the authority. 260-10 (b) Notwithstanding any rights or permits issued by the 260-11 commission or its predecessor agency that are held or acquired by 260-12 the authority, the impounding and use of the floodwaters of the 260-13 Colorado River or its tributaries for the generation of 260-14 hydroelectric power by the authority or anyone who may succeed to 260-15 the rights and privileges conferred on the authority by this 260-16 chapter are subject to the rights of a person, municipal 260-17 corporation, or body politic that, under legal grant of authority, 260-18 is impounding and putting to beneficial use the waters if the 260-19 person, municipal corporation, or body politic: 260-20 (1) has received a permit for the use from the 260-21 commission, or its predecessor agency; or 260-22 (2) is permitted by law to impound water for the 260-23 purposes described by this subsection. 260-24 (c) Nothing in this chapter shall be construed to require a 260-25 municipal corporation or body politic to surrender to the authority 260-26 any rights described by this section to which it may be legally 261-1 entitled. 261-2 (d) This chapter shall not be construed to subject to 261-3 condemnation by the authority or any successor, or by anyone who 261-4 may succeed to the rights and privileges conferred on the authority 261-5 by this chapter, any waters: 261-6 (1) impounded or to be impounded within or outside the 261-7 authority under any law authorizing water to be impounded or under 261-8 any permits granted to a municipal corporation or body politic; or 261-9 (2) impounded or permitted to be impounded or used 261-10 outside the authority under permits legally granted to any person. 261-11 (e) Nothing in this chapter shall be construed as depriving 261-12 any person or municipality of the right, legally granted, to 261-13 impound the waters of the Colorado River or its tributaries for 261-14 authorized beneficial uses or as repealing any law granting such 261-15 rights to persons and municipalities. 261-16 (f) The rights of the authority to impound or use or sell 261-17 the waters of the Colorado River and its tributaries for the 261-18 generation of hydroelectric power are subordinate and inferior to 261-19 the rights of: 261-20 (1) cities and towns situated within the boundaries of 261-21 the authority to build dams and impound floodwaters solely for 261-22 municipal purposes; 261-23 (2) cities and towns and bodies politic within the 261-24 watershed of the Colorado River outside the authority to build dams 261-25 or impound floodwaters for municipal purposes; and 261-26 (3) bodies politic within the watershed of the 262-1 Colorado River to build dams and impound the floodwaters within the 262-2 watershed of the Colorado River and its tributaries for domestic 262-3 purposes inside and outside the boundaries of the authority. 262-4 (g) The title to any rights, properties, licenses, 262-5 franchises, or permits acquired by the authority shall be subject 262-6 to the limitations imposed by Subsection (f). 262-7 Sec. 261.006. BOARD OF DIRECTORS. (a) The powers, rights, 262-8 privileges, and functions of the authority shall be exercised by 262-9 the board. The board shall consist of 15 directors and shall 262-10 include at least one director from each of the counties named in 262-11 Section 261.003 except Travis County, which shall have two 262-12 directors. Three directors shall be appointed at large by the 262-13 governor with the advice and consent of the senate from the 262-14 counties served with electric power, other than the counties 262-15 included in Section 261.003. 262-16 (b) A director appointed at large may not serve for a period 262-17 of more than six consecutive years. A county other than a county 262-18 included in Section 261.003 may not be represented on the board for 262-19 more than six consecutive years. A county other than Travis County 262-20 may not have two directors for a period greater than six 262-21 consecutive years. 262-22 (c) All directors shall be appointed by the governor with 262-23 the advice and consent of the senate for staggered terms of six 262-24 years, with five members' terms expiring on February 1 of each 262-25 odd-numbered year. 262-26 (d) Each director must be a resident and freehold property 263-1 taxpayer of the county from which the director is appointed and 263-2 must have been a resident and taxpayer of that county for not less 263-3 than two years immediately preceding the director's appointment. 263-4 Not more than two directors may be residents of the same county. 263-5 (e) A person is not eligible for appointment as a director 263-6 if the person has, during the three years immediately preceding the 263-7 person's appointment, been employed by an electric power and light 263-8 company, a telephone company, or any other utility company. 263-9 (f) At the expiration of the term of a director, a successor 263-10 shall be appointed by the governor with the advice and consent of 263-11 the senate. Each director shall hold office until the expiration 263-12 of the term for which the director was appointed and until a 263-13 successor has been appointed and has qualified, unless removed 263-14 sooner as provided by this section. 263-15 (g) A director may be removed by the governor for 263-16 inefficiency, neglect of duty, or misconduct in office after at 263-17 least 30 days written notice of the charges against the director 263-18 and an opportunity to be heard in person or by counsel at a public 263-19 hearing. 263-20 (h) A vacancy resulting from the death, resignation, or 263-21 removal of a director is filled by the governor for the unexpired 263-22 term. 263-23 (i) Each director shall qualify by taking the official oath 263-24 of office prescribed by the constitution or general laws of the 263-25 state. 263-26 (j) Each director is entitled to receive fees of office of 264-1 not more than $100 per day and reimbursement of actual expenses 264-2 incurred in accordance with Chapter 49; provided, however, that no 264-3 director is paid per diem in excess of 150 days in any one calendar 264-4 year. 264-5 (k) Eight directors constitute a quorum at any meeting and, 264-6 except as otherwise provided by this chapter or in the bylaws, all 264-7 action may be taken by the affirmative vote of a majority of the 264-8 directors present at any meeting, except that no bonds, notes, or 264-9 other evidence of indebtedness and no amendment of the bylaws shall 264-10 be valid unless authorized or ratified by the affirmative vote of 264-11 at least eight directors, unless otherwise specifically provided by 264-12 this chapter. 264-13 (l) The board is a state board as contemplated by Section 264-14 30a, Article XVI, Texas Constitution. 264-15 Sec. 261.007. OFFICERS; GENERAL MANAGER; EMPLOYEES. 264-16 (a) The board shall select a secretary, who shall keep true and 264-17 complete records of all proceedings of the board. Until the 264-18 appointment of a secretary or in the event of the secretary's 264-19 absence or inability to act, the board shall select a secretary pro 264-20 tempore. 264-21 (b) The board shall select a general manager. The general 264-22 manager is the chief executive officer of the authority. 264-23 (c) The board shall select a treasurer, who may also hold 264-24 the office of secretary. 264-25 (d) The officers described in Subsections (a)-(c) have the 264-26 powers and duties, hold office for the term, and are subject to 265-1 removal in the manner as may be provided in the bylaws. 265-2 (e) The board shall set the compensation of the officers. 265-3 The board may appoint the officers described in Subsections 265-4 (a)-(c), agents, and employees, may set their compensation and term 265-5 of office and the method by which they may be removed, and may 265-6 delegate to them the power and duties it determines proper. 265-7 Sec. 261.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The 265-8 money of the authority may be disbursed only on checks, drafts, 265-9 orders, or other instruments signed by the persons authorized by 265-10 the bylaws or a resolution concurred in by no fewer than eight 265-11 directors. 265-12 (b) The general manager, the treasurer, and all other 265-13 officers, agents, and employees of the authority charged with the 265-14 collection, custody, or payment of any funds of the authority must 265-15 give bond conditioned on the faithful performance of their duties 265-16 and an accounting for all funds and property of the authority 265-17 coming into their hands. 265-18 (c) The bonds must be in a form, amount, and with a surety 265-19 company authorized to do business in the state, approved by the 265-20 board. 265-21 (d) The premiums on the bonds shall be paid by the authority 265-22 and charged as an operating expense. 265-23 Sec. 261.009. OFFICE; RECORDS. (a) The domicile of the 265-24 authority is in the City of Austin, Travis County, where the 265-25 authority shall maintain its principal office in the charge of the 265-26 general manager. 266-1 (b) The authority shall keep complete and accurate accounts 266-2 conforming to approved methods of bookkeeping. 266-3 (c) The accounts and all contracts, documents, and records 266-4 of the authority shall be kept at the principal office. The 266-5 accounts and contracts shall be open to public inspection at all 266-6 reasonable times. 266-7 (d) The board shall cause to be made and completed, within 266-8 90 days after the end of each fiscal year, an audit of the books of 266-9 account and financial records of the authority for that fiscal 266-10 year. The audit shall be made by an independent certified public 266-11 accountant or firm of certified public accountants. 266-12 (e) Copies of a written report of the audit certified to by 266-13 the accountant or accountants must be placed and kept on file with 266-14 the commission, with the comptroller, and at the principal office 266-15 of the authority, and be open to public inspection at all 266-16 reasonable times. 266-17 Sec. 261.010. CONFLICT OF INTEREST. The provisions of 266-18 Chapter 171, Local Government Code, apply to conflicts of interest 266-19 in the award of district contracts. 266-20 Sec. 261.011. RATES AND CHARGES. (a) The board shall 266-21 establish and collect rates and other charges for the sale or use 266-22 of water, water connections, power, electric energy, or other 266-23 services sold, furnished, or supplied by the authority. The fees 266-24 and charges must be reasonable and nondiscriminatory and sufficient 266-25 to produce revenues adequate to: 266-26 (1) pay all expenses necessary to the operation and 267-1 maintenance of the properties and facilities of the authority; 267-2 (2) pay the interest on and principal of all bonds 267-3 issued under this chapter as the interest and principal become due 267-4 and payable; 267-5 (3) pay the principal and interest on any legal debt 267-6 created by the authority; 267-7 (4) pay all sinking fund and reserve fund payments 267-8 agreed to be made with respect to bonds and payable out of such 267-9 revenues, as the payments become due and payable; and 267-10 (5) fulfill the terms of any agreements made with the 267-11 holders of bonds or with any person in their behalf. 267-12 (b) Out of the revenues that may be received in excess of 267-13 those required for the purposes specified in Subsection (a), the 267-14 board may: 267-15 (1) establish a reasonable depreciation and emergency 267-16 fund; 267-17 (2) retire, by purchase and cancellation or 267-18 redemption, bonds issued under this chapter; or 267-19 (3) apply the excess revenues to any corporate 267-20 purpose. 267-21 (c) The rates and charges of the authority may not be in 267-22 excess of what is necessary to fulfill the obligations imposed on 267-23 the authority by this chapter. Nothing in this chapter shall be 267-24 construed as depriving the state of its power to regulate and 267-25 control fees or charges to be collected for the use of water, water 267-26 connections, power, electric energy, or other service; provided, 268-1 however, that the state pledges to and agrees with the purchasers 268-2 and successive holders of the bonds and other written evidence of 268-3 indebtedness issued under this chapter that the state will not 268-4 limit or alter the power vested in the authority to establish and 268-5 collect such fees and charges as will produce revenues sufficient 268-6 to pay the items specified in Subsection (a), or in any way impair 268-7 the rights or remedies of creditors or holders of the bonds, or of 268-8 any person in their behalf, until the bonds and other written 268-9 evidence of indebtedness, together with the interest on the bonds 268-10 or indebtedness and the interest on unpaid installments of interest 268-11 and all costs and expenses in connection with any action or 268-12 proceedings by or on behalf of the bondholders and all other 268-13 obligations of the authority in connection with the bonds are fully 268-14 met and discharged. 268-15 Sec. 261.012. PAYMENT OF DEBTS. Any indebtedness, 268-16 liability, or obligation of the authority for the payment of money, 268-17 however entered into or incurred and whether arising from contract, 268-18 implied contract, or otherwise, shall be payable solely: 268-19 (1) out of revenues received by the authority with 268-20 respect to its properties, subject to any prior lien on the 268-21 revenues conferred by any resolution or resolutions adopted as 268-22 provided by this chapter authorizing the issuance of bonds; or 268-23 (2) if the board so determines, out of the proceeds of 268-24 sale by the authority of bonds payable solely from such revenues. 268-25 Sec. 261.013. ISSUANCE OF BONDS. (a) The authority may 268-26 issue bonds from time to time and for any purpose authorized by 269-1 this chapter. If bonds of the authority are issued, the bonds: 269-2 (1) when sold, shall be sold for cash at public sale 269-3 to the highest and best bidder, as determined by the board, and the 269-4 interest cost of the money received for the bonds, computed to 269-5 maturity in accordance with the method prescribed by the board in 269-6 connection with the sale of the bonds; 269-7 (2) may be issued, on such terms as the board 269-8 determines, in exchange for property of any kind, real, personal, 269-9 or mixed, or any interest in such property that the board 269-10 determines necessary or convenient for any corporate purposes, 269-11 provided that any property acquired through the exchange of bonds 269-12 is certified in writing before the exchange as being of a value 269-13 equal to or in excess of the par value of the bonds by an 269-14 independent appraisal that is to be kept on file by the authority 269-15 as a public record, with a copy filed with the state auditor; 269-16 (3) may be issued in exchange for like principal 269-17 amounts of other obligations of the authority, matured or 269-18 unmatured; or 269-19 (4) may be sold to the state or any agency of the 269-20 state, the United States, or any agency or corporation created or 269-21 designated by the state or the United States in exchange for cash 269-22 equal in amount to the principal amount of the bonds sold and the 269-23 interest cost of the money received for the bonds, computed to 269-24 maturity in accordance with standard bond tables in general use by 269-25 banks and insurance companies, as determined by the board. 269-26 (b) The proceeds from the sale of the bonds shall be 270-1 deposited in a bank or banks or a trust company or trust companies 270-2 and shall be paid out pursuant to such terms and conditions not in 270-3 conflict with the provisions of this chapter as may be agreed on 270-4 between the authority and the purchasers of the bonds. 270-5 (c) The proceeds of the bonds and any net operating revenues 270-6 derived from the sale of electric power or water which may be 270-7 available after paying the interest on outstanding bonds and the 270-8 principal amount of such bonds and after setting aside sufficient 270-9 funds for working capital, including a reasonable amount for 270-10 contingencies, and setting aside funds for reserves to secure 270-11 payment of principal of and interest on outstanding bonds, shall be 270-12 used: 270-13 (1) to build and construct dams or other structures 270-14 within the authority, on the Colorado River and its tributaries, 270-15 for the impounding and storage of floodwater and surface water; 270-16 (2) to purchase and install in the dams on the 270-17 Colorado River hydroelectric generators and other related 270-18 facilities for the generation of hydroelectric power; 270-19 (3) for the construction of additional lines and the 270-20 purchase and installation of additional equipment the board 270-21 considers necessary or expedient to enable the authority to 270-22 continue to meet the demand for electric power in the areas within 270-23 the authority directly served by its transmission lines and 270-24 distribution systems on January 1, 1975, and other areas within the 270-25 service area served by the authority on January 1, 1975, that 270-26 cannot receive comparable service from any other power source and 271-1 to provide electric power to the state as provided by Section 271-2 261.004; provided, however, that no steam generating capacity shall 271-3 be installed by the authority, except that the authority may 271-4 acquire, install, construct, enlarge and make additions to, and 271-5 operate one or more steam generating plants, the sum of whose 271-6 aggregate capacity shall not be more than 5,000 megawatts, to be 271-7 located within the boundaries of either one or more of Colorado, 271-8 Fayette, Bastrop, Travis, Blanco, Burnet, Llano, or San Saba 271-9 counties and to be utilized for the purpose of serving the area 271-10 directly served by the authority's transmission lines and 271-11 distribution systems on January 1, 1975, and to provide electric 271-12 power to the state as provided by Section 261.004; 271-13 (4) to own or acquire an interest in one or more steam 271-14 generating plants at any location within or outside the authority, 271-15 if any such plant or plants are owned in conjunction with one or 271-16 more other utilities, public, private, or municipal, provided that 271-17 any such interest owned or acquired by the authority shall be 271-18 utilized for the sole purpose of serving electric power and energy 271-19 only in the areas within the authority directly served by its 271-20 transmission lines and distribution systems as they existed on 271-21 January 1, 1975; 271-22 (5) for the purpose of building dams, levees, or such 271-23 other flood control structures between the City of Austin and the 271-24 mouth of the Colorado River as may be considered necessary and 271-25 desirable by the board and for acquiring or installing such 271-26 facilities necessary to supply water for irrigation and other 272-1 useful purposes within the counties composing the authority; and 272-2 (6) in aid of any soil conservation or soil 272-3 reclamation projects within the authority that the board determines 272-4 to be in the public interest. 272-5 (d) Nothing in this section shall be construed as 272-6 establishing priorities as to uses of water that are contrary to 272-7 the general laws of this state with reference to the water uses. 272-8 (e) Proceeds of bonds sold by the authority, and any net 272-9 operating revenues that the board determines are not needed to 272-10 carry out the projects set out in Subsections (c)(1), (2), and (3), 272-11 to the extent not required by an outstanding trust indenture to be 272-12 used to redeem outstanding bonds, shall be placed in a separate 272-13 fund to be designated "The Irrigation, Conservation and Reclamation 272-14 Fund of the Authority" and used only for carrying out the projects 272-15 and purposes authorized in Subsections (c)(5) and (6) until the 272-16 legislature directs otherwise. Dams built on the tributaries of 272-17 the Colorado River or on the Colorado River shall be used for the 272-18 purpose of impounding and storing floodwaters and surface waters. 272-19 (f) Bonds shall be authorized by resolution of the board 272-20 concurred in by at least 12 of the members. 272-21 (g) Bonds shall bear such date or dates, mature at such time 272-22 or times, bear interest at such rates, payable annually or 272-23 semiannually, be in such denominations, be in such form, either 272-24 coupon or registered, carry such registration privileges as to 272-25 principal only or as to both principal and interest and as to 272-26 exchange of coupon bonds for registered bonds or vice versa and 273-1 exchange of bonds of one denomination for bonds of other 273-2 denominations, be executed in such manner, and be payable at such 273-3 place or places within or outside the state as the resolution or 273-4 resolutions may provide. 273-5 (h) A resolution or resolutions authorizing bonds may 273-6 contain provisions, which shall be part of the contract between the 273-7 authority and the holder of the bonds from time to time: 273-8 (1) reserving the right to redeem the bonds at the 273-9 time or times, in the amounts, and at the prices, not exceeding 105 273-10 percent of the principal amount of the bonds, plus accrued 273-11 interest, as may be provided; 273-12 (2) providing for the setting aside of interest and 273-13 sinking funds or reserve funds and the regulation and disposition 273-14 of those funds; 273-15 (3) pledging, to secure the payment of the principal 273-16 of and interest on the bonds and of the sinking fund or reserve 273-17 fund payments agreed to be made with respect to the bonds, all or 273-18 any part of the gross or net revenues received by the authority 273-19 with respect to the property, real, personal, or mixed, acquired or 273-20 constructed or to be acquired or constructed with the bonds or the 273-21 proceeds of the bonds, or all or any part of the gross or net 273-22 revenues previously or thereafter received by the authority from 273-23 any source; 273-24 (4) prescribing the purposes to which the bonds or any 273-25 bonds issued later are to be applied; 273-26 (5) agreeing to set and collect rates and charges 274-1 sufficient to produce revenues adequate to pay the items specified 274-2 in Section 261.011(a) and prescribing the use and disposition of 274-3 all revenues; 274-4 (6) prescribing limitations on the issuance of 274-5 additional bonds and on the agreements that may be made with the 274-6 purchasers and successive holders of the bonds; 274-7 (7) relating to the construction, extension, 274-8 improvement, reconstruction, operation, maintenance, and repair of 274-9 the properties of the authority and the carrying of insurance on 274-10 all or any part of the properties covering loss or damage or loss 274-11 of use and occupancy resulting from specified risks; 274-12 (8) setting the procedure, if any, by which, if the 274-13 authority so desires, the terms of any contract with the holders of 274-14 the bonds may be amended or abrogated, the amount of bonds whose 274-15 holders must consent to such amendment or abrogation and the manner 274-16 in which the consent may be given; 274-17 (9) providing for the execution and delivery by the 274-18 authority, to a bank or trust company authorized by law to accept 274-19 trusts, of indentures and agreements for the benefit of the holders 274-20 of the bonds setting forth all of the agreements authorized by this 274-21 chapter to be made with or for the benefit of the holders of the 274-22 bonds and other provisions as may be customary in such indentures 274-23 or agreements; and 274-24 (10) making other provisions, not inconsistent with 274-25 the provisions of this chapter, as the board may approve, provided 274-26 that no agreement, contract, or commitment shall ever be made 275-1 which, under any contingency, could or would result in the United 275-2 States government or any of its agencies or bureaus claiming the 275-3 right or privilege of controlling or managing the properties and 275-4 facilities of the authority or the control or disposition of the 275-5 water of the Colorado River or its tributaries; provided, however, 275-6 that nothing in this chapter shall be construed as limiting or 275-7 restricting the rights or powers as set out in Section 261.014 in 275-8 the event of any default on the part of the authority; and provided 275-9 further that nothing in this chapter is intended to prohibit 275-10 compliance with existing federal regulations, if compliance with 275-11 those regulations is done on the advice and approval of the 275-12 attorney general. 275-13 Sec. 261.014. DEFAULT PROCEDURES. (a) A resolution 275-14 authorizing the issuance of bonds and any indenture or agreement 275-15 entered into pursuant to the resolution may include provisions 275-16 regarding a default on: 275-17 (1) the payment of the interest on any bonds as the 275-18 interest becomes due and payable; 275-19 (2) the payment of the principal of any bonds as they 275-20 become due and payable, whether at maturity, by call for 275-21 redemption, or otherwise; or 275-22 (3) the performance of an agreement made with the 275-23 purchasers or successive holders of any bonds. 275-24 (b) If a default described by Subsection (a) has occurred 275-25 and has continued for a period, if any, prescribed by the 275-26 resolution authorizing the issuance of the bonds, the trustee under 276-1 the indenture or indentures entered into with respect to the bonds 276-2 authorized by the resolution, or, if there is no indenture, a 276-3 trustee appointed in the manner provided in the resolution by the 276-4 holders of 25 percent in aggregate principal amount of the bonds 276-5 authorized by the resolution or resolutions and then outstanding, 276-6 shall, in the trustee's own name but for the equal and 276-7 proportionate benefit of the holders of all the bonds, and with or 276-8 without having possession of the bonds: 276-9 (1) by mandamus or other suit, action, or proceeding 276-10 at law or in equity, enforce all rights of the holders of the 276-11 bonds, including the requirements of Section 261.011; 276-12 (2) bring suit on the bonds or the appurtenant 276-13 coupons; 276-14 (3) by action or suit in equity, require the authority 276-15 to account as if it were the trustee of an express trust for the 276-16 bondholders; 276-17 (4) by action or suit in equity, enjoin any acts or 276-18 things which may be unlawful or in violation of the rights of the 276-19 holders of the bonds; or 276-20 (5) after such notice to the authority as the 276-21 resolution may provide, declare the principal of all of the bonds 276-22 due and payable, and if all defaults have been made good, then with 276-23 the written consent of the holders of 25 percent in aggregate 276-24 principal amount of the bonds then outstanding, annul the 276-25 declaration and its consequences; provided, however, that the 276-26 holders of more than a majority in principal amount of the bonds 277-1 authorized by the resolution and then outstanding shall, by written 277-2 instrument delivered to the trustee, have the right to direct and 277-3 control any and all action taken or to be taken by the trustee 277-4 under this section. 277-5 (c) A resolution, indenture, or agreement relating to bonds 277-6 may provide that in such suit, action, or proceeding under this 277-7 section, the trustee, whether or not all of the bonds have been 277-8 declared due and payable and with or without possession of any of 277-9 the bonds, shall be entitled as of right to the appointment of a 277-10 receiver who may enter and take possession of all or any part of 277-11 the properties of the authority and operate and maintain the 277-12 properties and set, collect, and receive rates and charges 277-13 sufficient to provide revenues adequate to pay the items set forth 277-14 in Section 261.011(a) and the costs and disbursements of the suit, 277-15 action, or proceeding and apply such revenues in conformity with 277-16 the provisions of this chapter and the resolution or resolutions 277-17 authorizing the bonds. 277-18 (d) In any suit, action, or proceeding by a trustee under 277-19 this section, the reasonable fees, counsel fees, and expenses of 277-20 the trustee or the receiver or receivers, if any, constitute 277-21 taxable disbursements, and all costs and disbursements allowed by 277-22 the court shall be a first charge on any revenues pledged to secure 277-23 the payment of the bonds. 277-24 (e) Subject to the provisions of the constitution, the 277-25 courts of Travis County shall have jurisdiction of any suit, 277-26 action, or proceeding under this section by a trustee on behalf of 278-1 the bondholders and of all property involved in the suit, action, 278-2 or proceeding. 278-3 (f) In addition to the powers specifically provided by this 278-4 section, the trustee shall have and possess all powers necessary or 278-5 appropriate for the exercise of the powers specifically provided or 278-6 incident to the general representation of the bondholders in the 278-7 enforcement of their rights. 278-8 Sec. 261.015. BOND APPROVAL AND REGISTRATION. (a) Before 278-9 any bonds may be sold by the authority, a certified copy of the 278-10 proceedings for the issuance of the bonds, including the form of 278-11 the bonds, together with any other information the attorney general 278-12 may require, shall be submitted to the attorney general, and if the 278-13 attorney general finds that the bonds have been issued in 278-14 accordance with law, the attorney general shall approve the bonds 278-15 and shall execute a certificate to that effect which shall be filed 278-16 in the office of the comptroller and be recorded in a record kept 278-17 for that purpose. Bonds may not be issued until they have been 278-18 registered by the comptroller, who shall register the bonds if the 278-19 attorney general has filed with the comptroller the certificate 278-20 approving the bonds and the proceedings for the issuance of the 278-21 bonds as provided in this subsection. 278-22 (b) Bonds approved by the attorney general and registered by 278-23 the comptroller and issued in accordance with the proceedings so 278-24 approved are valid and binding obligations on the revenues of the 278-25 authority and are incontestable for any cause after their 278-26 registration. 279-1 Sec. 261.016. ANNUAL AUDIT. (a) Annually the state auditor 279-2 shall audit the books and accounts of the authority in such manner 279-3 as to enable the auditor to report to the legislature as to the 279-4 manner and purpose of the expenditure of funds of the authority. 279-5 The audit shall cover the fiscal year from July 1 to June 30, and a 279-6 report of the audit shall be made before January 1 of each year, a 279-7 copy of which shall be filed with the governor, the attorney 279-8 general, the lieutenant governor, and the speaker of the house of 279-9 representatives. 279-10 (b) The state auditor, after completing the report, shall 279-11 prepare a detailed statement showing the actual cost of the audit 279-12 and certifying the account to the governor for approval. When 279-13 approved by the governor, the state auditor shall deliver an 279-14 official copy of the detailed statement to the general manager of 279-15 the authority, and the authority shall immediately deposit the 279-16 money with the comptroller, and the money shall be placed in the 279-17 general fund. Nothing in this chapter shall prohibit an 279-18 independent audit as required under any bond indenture or 279-19 resolution. 279-20 Sec. 261.017. AUTHORITY AS CONSERVATION AND RECLAMATION 279-21 DISTRICT. (a) The authority shall manage and use its facilities, 279-22 the water impounded by its dams on the Colorado River or its 279-23 tributaries, and the net operating revenues which may be available 279-24 to accomplish, to the extent possible, the purposes included in 279-25 Section 59(a), Article XVI, Texas Constitution, that are enumerated 279-26 in the provisions of this chapter, and the authority shall market 280-1 such electric power that in the opinion of the board will not be 280-2 immediately needed by the authority, under contracts and on 280-3 conditions that will best enable the authority to pay its operating 280-4 expenses, meet its outstanding financial obligations as they 280-5 mature, supply the increasing demand for electric power in the area 280-6 dependent on its systems for electric service on April 28, 1975, 280-7 and assure, to the extent possible, an adequate supply of water for 280-8 irrigation and other useful purposes, as it is needed in the 280-9 various counties comprising the authority. 280-10 (b) When bonds are to be issued to finance in whole or in 280-11 part water-using facilities, before approving the bonds the 280-12 attorney general shall be furnished a resolution from the 280-13 commission or its successor agency certifying that the authority 280-14 possesses the necessary water right authorizing it to impound or 280-15 otherwise appropriate the waters to be utilized by the project. 280-16 Sec. 261.018. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued 280-17 by the authority pursuant to the provisions of this chapter are 280-18 negotiable instruments under the laws of this state. 280-19 Sec. 261.019. ADDITIONAL POWERS RELATING TO CONTRACTS, 280-20 RULES, AND REGULATIONS. The authority may, but without intending 280-21 by this provision to limit any powers of the authority as granted 280-22 to it by this chapter, enter into and carry out contracts or 280-23 establish or comply with rules and regulations concerning labor and 280-24 materials and other related matters in connection with any project 280-25 or projects as the authority considers desirable or as requested by 280-26 the United States, the state, or any corporation or agency created, 281-1 designated, or established by the United States or the state that 281-2 may assist in the financing of the project or projects. 281-3 Sec. 261.020. PURCHASE OF BONDS. The authority may, out of 281-4 any funds available for the purpose, purchase any bonds issued by 281-5 it at a price not exceeding the redemption price applicable at the 281-6 time of the purchase, or if the bonds are not redeemable, at a 281-7 price not exceeding the principal amount of the bonds plus accrued 281-8 interest. All bonds so purchased shall be canceled. 281-9 Sec. 261.021. DISPOSITION OF PROPERTY. (a) Nothing in this 281-10 chapter shall be construed as authorizing the authority, and the 281-11 authority is not authorized, to mortgage or otherwise encumber any 281-12 of its property of any kind, real, personal, or mixed, or any 281-13 interest in such property, or to acquire any property or interest 281-14 subject to a mortgage or conditional sale, provided that this 281-15 section shall not be construed as preventing the pledging of the 281-16 revenues of the authority as authorized by this chapter. 281-17 (b) Nothing in this chapter shall be construed as 281-18 authorizing the sale of any property or interest by the authority 281-19 or by any receiver of any of its properties or through any court 281-20 proceeding or otherwise, unless, by the affirmative vote of 281-21 three-fourths of its statutory membership, the board has determined 281-22 that the property or interest is not necessary or convenient or of 281-23 beneficial use to the business of the authority and has approved 281-24 the terms of the sale. Except by sale as expressly authorized in 281-25 this section, no such property or interest shall ever come into the 281-26 ownership or control, directly or indirectly, of any person, firm, 282-1 or corporation other than a public authority created under the laws 282-2 of the state. 282-3 (c) The limitations on the sale of properties of the 282-4 authority in this section shall not and are not intended to 282-5 preclude the authority from selling any interest owned or held by 282-6 the authority in any jointly owned electric power and generating 282-7 facilities constructed, or to be constructed, pursuant to the 282-8 provisions of Section 261.004(t), provided that any such sale of an 282-9 ownership interest in a joint project is provided for and in 282-10 conformance with any contract with other owners regarding such 282-11 electric power and energy generating facilities. 282-12 (d) All property of the authority shall be at all times 282-13 exempted from forced sale, and nothing in this chapter shall be 282-14 construed to authorize the sale of any of the property of the 282-15 authority under any judgment rendered in any suit, and such sales 282-16 are prohibited. 282-17 Sec. 261.022. PROPERTY AGREEMENTS WITH CITY OF AUSTIN. 282-18 Nothing in this chapter prohibits the authority from owning 282-19 property in conjunction with, acquiring property from, or selling 282-20 property to the City of Austin, on terms and conditions as the 282-21 authority and the city may agree. The authority may acquire 282-22 property from the City of Austin subject to repurchase agreements, 282-23 or other terms and conditions as may be agreed on between the 282-24 authority and the city, and may enter into such contractual 282-25 relations with the city respecting property as the parties may 282-26 agree on. 283-1 Sec. 261.023. PROPERTY USEFUL IN THE PRODUCTION OR 283-2 UTILIZATION OF ELECTRIC ENERGY. Nothing in this chapter shall 283-3 prohibit or restrict the sale, lease, or other disposition, to any 283-4 electric cooperative, municipality, or other governmental agency or 283-5 body politic and corporate of the state, of any property acquired 283-6 or constructed by the authority and incidental to or used or useful 283-7 in the generation, production, transmission, distribution, or sale 283-8 of electric energy. The authority is authorized to pledge the 283-9 proceeds of any such sale or sales to the same extent and in the 283-10 same manner in which it is authorized to pledge its revenues. 283-11 Sec. 261.024. PUBLIC ACCESS. (a) The authority may not 283-12 prevent the public use of its lands for recreation purposes and 283-13 fishing except at such points where, in the opinion of the board, 283-14 the use would interfere with the proper conduct of the business of 283-15 the authority or would interfere with the lawful use of the 283-16 property. A lease of authority lands, except one expressly 283-17 permitted by Section 261.023, is not lawful unless it provides for 283-18 free public use of the lands for recreational purposes and fishing. 283-19 (b) All public rights-of-way traversing the areas adjacent 283-20 to the areas flooded or to be flooded by the impounded waters shall 283-21 remain open as a way of free public passage to and from the lakes 283-22 created, and no charge shall ever be made to the public for the 283-23 right to engage in fishing, boating, or swimming on such lakes. 283-24 (c) If any citizen of the state or of the United States 283-25 advises the attorney general that this section has not been 283-26 complied with, the attorney general is authorized after 284-1 investigation of the complaint and notice to the authority to 284-2 institute the proper legal proceedings, if any are required, to 284-3 require the authority or its successor to comply with this section. 284-4 (d) If any of the land owned by the authority bordering the 284-5 lakes to be created under the authority of this chapter is sold by 284-6 the authority, the authority shall retain in each tract a strip 20 284-7 feet wide abutting the high-water line of the lake for the purpose 284-8 of passage and use by the public for public sports and amusements; 284-9 provided, however, that this subsection shall not apply to any 284-10 sales of land by the authority to any state or federal agency to be 284-11 used for game or fish sanctuaries, preserves, or for propagation 284-12 purposes. 284-13 Sec. 261.025. BONDS EXEMPT FROM TAXATION. All bonds and 284-14 interest on the bonds issued under the provisions of this chapter 284-15 are exempt from taxation, except inheritance taxes, by the state or 284-16 by any municipal corporation, county, or other political 284-17 subdivision or taxing district of the state. 284-18 Sec. 261.026. SOURCE OF AUTHORITY. (a) This chapter, 284-19 without reference to other statutory provisions, constitutes full 284-20 authority for the authorization and issuance of bonds under this 284-21 chapter, and no other act or law with regard to the authorization 284-22 or issuance of obligations or the deposit of the proceeds of 284-23 obligations, or in any way impeding or restricting the carrying out 284-24 of the acts authorized by this chapter shall be construed as 284-25 applying a limitation to any proceedings taken under or acts done 284-26 pursuant to this chapter. 285-1 (b) Nothing in this chapter shall prevent the authority from 285-2 issuing bonds under any applicable general law of the state, 285-3 provided, however, that no bonds are issued that would be in 285-4 conflict with Section 261.025. 285-5 Sec. 261.027. BONDS AS INVESTMENTS AND SECURITY FOR 285-6 DEPOSITS. (a) All bonds of the authority are legal and authorized 285-7 investments for individuals, partnerships, profit and nonprofit 285-8 corporations, banks, savings banks, trust companies, building and 285-9 loan associations, savings and loan associations, insurance 285-10 companies, fiduciaries, trustees, and guardians and for the sinking 285-11 funds of cities, towns, villages, counties, school districts, or 285-12 other political corporations or subdivisions of the state. 285-13 (b) The bonds are eligible to secure the deposit of all 285-14 public funds of the state and any public funds of cities, towns, 285-15 villages, counties, school districts, or other political 285-16 corporations or subdivisions of the state and are lawful and 285-17 sufficient security for such deposits to the extent of their par 285-18 value when accompanied by all unmatured coupons. 285-19 Sec. 261.028. CONSTRUCTION. This chapter and all of its 285-20 terms and provisions shall be liberally construed to carry out the 285-21 purposes set forth in this chapter. 285-22 Sec. 261.029. AUTHORITY POWERS IN LAMPASAS COUNTY. 285-23 Notwithstanding any other provision of this chapter, the authority 285-24 may exercise all powers within Lampasas County that it may 285-25 otherwise exercise within the 10 counties specified in Section 285-26 261.003, except that the authority may not provide water or 286-1 wastewater services in the portion of Lampasas County outside the 286-2 Colorado River watershed without the consent of the Brazos River 286-3 Authority. 286-4 Sec. 261.030. ADDITIONAL SPECIFIC POWERS. (a) 286-5 Notwithstanding any other provision of this chapter, the 286-6 authority: 286-7 (1) may purchase, construct, acquire, own, operate, 286-8 repair, improve, or extend any facility necessary or convenient to 286-9 provide water services in Williamson County in cooperation with 286-10 another special district, a municipality, or another governmental 286-11 entity; 286-12 (2) may not provide water services in the watershed of 286-13 the Brazos River unless the authority obtains in writing the 286-14 consent of the Brazos River Authority before the services are 286-15 provided; and 286-16 (3) may transfer surface water from the authority to a 286-17 place in Williamson County that is outside the watershed of the 286-18 Colorado River only if the transfer is made to: 286-19 (A) a municipality that was a water customer of 286-20 the authority on May 20, 1997, and located in the watersheds of 286-21 both the Colorado River and the Brazos River; or 286-22 (B) a person or entity that pays for the surface 286-23 water in an amount sufficient to pay both the authority's 286-24 applicable water rate and an additional charge to pay the costs of 286-25 mitigating any adverse effects of the transfer of surface water to 286-26 Williamson County from the Colorado River watershed, and provided 287-1 the transfer results in no net loss of water to the Colorado River 287-2 watershed as determined by the board. 287-3 (b) Notwithstanding the amounts of surface water transferred 287-4 by the authority to municipalities in accordance with Subsection 287-5 (a)(3)(A), the volume of surface water authorized for transfer by 287-6 the authority in accordance with Subsection (a)(3)(B) shall not 287-7 exceed 25,000 acre-feet per year, it being the intent of the 287-8 legislature that the authority shall not be the sole provider of 287-9 surface water to Williamson County. 287-10 (c) The authority shall determine the amount of the 287-11 additional charge under Subsection (a)(3)(B). The additional 287-12 charge may not be less than 10 percent of the authority's 287-13 applicable rate for surface water to be transferred. The authority 287-14 shall deposit any money the authority receives from the additional 287-15 charge, and may deposit any other money as the board determines, 287-16 into a separate fund designated as the agricultural water 287-17 conservation fund. The authority may use money from the 287-18 agricultural water conservation fund only for the development of 287-19 water resources or other water use strategies to replace or offset 287-20 the amount of surface water to be transferred to Williamson County, 287-21 including the development and implementation of methods, programs, 287-22 and strategies relating to groundwater resources, reuse, 287-23 conservation, and other opportunities to reduce the reliance on 287-24 surface water for agricultural irrigation, provided that the 287-25 methods, programs, and strategies take into consideration the 287-26 surface water and groundwater needs of the affected Colorado River 288-1 Basin users. 288-2 (d) Before its determination of the use of money from the 288-3 agricultural water conservation fund, the authority shall consult 288-4 with an advisory committee representing agricultural irrigation 288-5 interests that is appointed by the county judges of Matagorda, 288-6 Wharton, and Colorado counties. The board's determination of the 288-7 additional charge is not subject to review or modification by any 288-8 regulatory agency or authority. Water resources developed or 288-9 conserved through the additional charge may be acquired from any 288-10 source inside or outside the boundaries of the authority and shall 288-11 be used to benefit the water service areas of the authority's 288-12 irrigation operations. 288-13 CHAPTER 262. LOWER NECHES VALLEY AUTHORITY 288-14 Sec. 262.001. CREATION. (a) A conservation and reclamation 288-15 district to be known as the "Lower Neches Valley Authority" is 288-16 created. The authority is a governmental agency and a body politic 288-17 and corporate. 288-18 (b) The authority is created under and is essential to 288-19 accomplish the purposes of Section 59, Article XVI, Texas 288-20 Constitution. 288-21 (c) The authority may exercise the powers granted by Section 288-22 59, Article XVI, Texas Constitution, to districts created to 288-23 conserve, store, control, preserve, utilize, and distribute the 288-24 storm waters, floodwaters, and waters of the rivers and streams of 288-25 the state, as well as such powers as may be contemplated and 288-26 implied by the purposes of that provision of the constitution and 289-1 as may be conferred by general law and by the provisions of this 289-2 chapter, except that nothing in this chapter shall be construed to 289-3 authorize the authority to levy any taxes or special assessments or 289-4 to create any debt payable out of taxation. 289-5 (d) The authority may construct, maintain, and operate, in 289-6 the valleys of the Neches River and its tributaries, within or 289-7 outside the boundaries of the authority, all works considered 289-8 essential to the operation of the authority and for its 289-9 administration in the control, storing, preservation, and 289-10 distribution for all useful purposes of the waters of the Neches 289-11 River and its tributaries, including the storm waters and 289-12 floodwaters. 289-13 (e) The authority may exercise the authority and power of 289-14 control and regulation over such waters of the Neches River and its 289-15 tributaries as may be exercised by the state, subject to the 289-16 provisions of the constitution and the acts of the legislature. 289-17 Sec. 262.002. DEFINITIONS. In this chapter: 289-18 (1) "Authority" means the Lower Neches Valley 289-19 Authority. 289-20 (2) "Board" means the board of directors of the 289-21 authority. 289-22 (3) "Director" means a member of the board. 289-23 Sec. 262.003. TERRITORY. The territory of the authority is 289-24 as follows: All of Jefferson, Hardin and Tyler Counties, a strip 289-25 of land ten (10) miles in width off the Eastern end of Liberty 289-26 County (the West line of said strip being parallel to and ten (10) 290-1 miles West of the extreme Eastern boundary line of Liberty County, 290-2 and a strip of land Fifteen (15) miles in width off the East side 290-3 of Chambers County. (the West line of such strip being parallel to 290-4 and fifteen (15) miles West of the Eastern boundary line of 290-5 Chambers County). 290-6 Sec. 262.004. BOARD OF DIRECTORS. (a) The management and 290-7 control of all the affairs of the authority shall be vested in a 290-8 board consisting of nine directors. 290-9 (b) A director must be a freehold property taxpayer and a 290-10 legal voter of the state. 290-11 (c) The governor shall appoint the directors with the advice 290-12 and consent of the senate. The board shall include five residents 290-13 of Jefferson County, two of Hardin County, and two of Tyler County. 290-14 (d) Directors serve for staggered terms of six years. 290-15 Directors hold office after their appointment and qualification 290-16 until their successors are appointed and have qualified, unless 290-17 sooner removed by the governor. 290-18 (e) If a vacancy occurs on the board, the vacancy is filled 290-19 for the unexpired term in the manner provided for appointments for 290-20 a full term. 290-21 (f) Within 15 days after appointment, each director must 290-22 qualify by taking the official oath and filing with the secretary 290-23 of state a good and sufficient bond in the amount of $5,000 payable 290-24 to the authority, conditioned on the faithful performance of that 290-25 director's duties, and subject to approval by the secretary of 290-26 state. 291-1 (g) The board shall employ a general manager at the 291-2 compensation set by the board. 291-3 Sec. 262.005. OFFICERS; VOTING REQUIREMENTS; WARRANTS. 291-4 (a) The board shall elect from among its members a president, vice 291-5 president, treasurer, and secretary. 291-6 (b) Five directors constitute a quorum at any meeting, and a 291-7 concurrence of a majority of those present is sufficient in all 291-8 matters pertaining to the business of the authority, except that 291-9 the letting of construction contracts and the authorization of the 291-10 issuance of checks paying construction contracts require the 291-11 concurrence of seven directors. 291-12 (c) Warrants for the payment of money may be drawn and 291-13 signed by two officers or employees designated by standing order 291-14 entered on the minutes of the board when such accounts have been 291-15 contracted and ordered paid by the board. 291-16 Sec. 262.006. OFFICER AND EMPLOYEE BONDS. The board shall 291-17 require an officer or employee who collects, pays, or handles any 291-18 funds of the authority to furnish good and sufficient bond, with a 291-19 duly authorized surety company, payable to the authority, in an 291-20 amount sufficient to safeguard the authority. The bond must be 291-21 conditioned on the faithful performance of the person's duties and 291-22 on the person's accounting for all funds and property of the 291-23 authority coming into the person's hands. 291-24 Sec. 262.007. DUTIES OF OFFICERS; MEETINGS. (a) The 291-25 president is the chief executive officer of the authority and 291-26 presides at all meetings of the board. The vice president acts as 292-1 president in case of the absence or disability of the president. 292-2 (b) The secretary is responsible for keeping all records and 292-3 books of the authority. In case of the absence or inability of the 292-4 secretary to act, a secretary pro tempore shall be selected by the 292-5 board. 292-6 (c) The board shall hold regular meetings at the office of 292-7 the authority in February, May, August, and November of each year 292-8 and may hold other meetings at such other times as the business of 292-9 the authority may require. 292-10 Sec. 262.008. DIRECTOR FEES. (a) A director is entitled to 292-11 receive a fee to be determined by the board not to exceed the fees 292-12 prescribed by Section 49.060 for each day of service necessary to 292-13 the discharge of the director's duties, provided the service is 292-14 authorized by vote of the board. 292-15 (b) Each director shall file with the secretary, on the last 292-16 day of each month or as soon after that date as possible, a 292-17 verified statement showing the actual number of days of service for 292-18 that month before a warrant is issued for the service. 292-19 Sec. 262.009. RECORDS; AUTHORITY OFFICE. (a) The board 292-20 shall keep a true and full record of its meetings and proceedings 292-21 and maintain the records in a secure manner. The records are the 292-22 property of the authority and are subject to public inspection. 292-23 (b) An office shall be established and maintained within the 292-24 authority for the conduct of the authority's business. 292-25 Sec. 262.010. ACCOUNT RECORDS; AUDIT. (a) The authority 292-26 shall keep a complete book of accounts. 293-1 (b) The account books and records of the authority and of 293-2 the depository of the authority shall be audited by a certified 293-3 public accountant annually as soon as practicable after the 293-4 expiration of each year. The audit shall cover the preceding 293-5 calendar year. 293-6 (c) A report on the audit required by this section shall be 293-7 submitted at the first regular meeting of the board after the end 293-8 of the calendar year. A copy of the report shall be filed in the 293-9 office of the authority, with the depository of the authority, in 293-10 the office of the auditor, and with the commission, and all such 293-11 copies shall be open to public inspection. 293-12 Sec. 262.011. GENERAL MANAGER; EMPLOYEES. (a) The board 293-13 may employ a general manager for the authority and may delegate to 293-14 the general manager full authority to manage and operate the 293-15 authority's affairs subject only to the orders of the board. The 293-16 general manager's term of office and compensation shall be 293-17 determined in the manner provided by the board. 293-18 (b) The terms of employment and compensation of all 293-19 authority positions shall be determined in the manner provided by 293-20 the board. 293-21 Sec. 262.012. SURETY BONDS. All bonds required to be given 293-22 by directors, officers, and employees of the authority shall be 293-23 executed by a surety company authorized to do business in this 293-24 state. The authority may pay the premiums on the bonds. 293-25 Sec. 262.013. CONFLICT OF INTEREST; PENALTY. A director, 293-26 engineer, or employee of the authority may not be, directly or 294-1 indirectly, interested either for that person or as an agent for 294-2 anyone else in any contract for the purchase or construction of any 294-3 work by the authority. If such a person, directly or indirectly, 294-4 becomes interested in such a contract, the person shall be guilty 294-5 of a misdemeanor and on conviction shall be punished by a fine not 294-6 to exceed $1,000, by confinement in the county jail for not less 294-7 than six months or more than one year, or by both fine and 294-8 imprisonment. 294-9 Sec. 262.014. CONTROL AND EMPLOYMENT OF WATERS. (a) The 294-10 authority may exercise, in addition to all the powers otherwise 294-11 provided by this chapter for the conservation and beneficial 294-12 utilization of waters, the power of control and employment of the 294-13 waters of the Neches River and its tributaries, including the storm 294-14 waters and floodwaters, in the manner and for the following 294-15 purposes: 294-16 (1) to provide through practical and legal means for 294-17 the control and coordination of the regulation of the waters of the 294-18 Neches River and its tributaries; 294-19 (2) to provide by adequate organization and 294-20 administration for the preservation of the equitable rights of the 294-21 people of the different sections of the watershed area in the 294-22 beneficial use of the waters of the Neches River and its 294-23 tributaries; 294-24 (3) to provide for storage, control, and conservation 294-25 of the waters of the Neches River and its tributaries within or 294-26 outside the authority in order to prevent the escape of any of the 295-1 waters without the maximum of public service and to provide for the 295-2 prevention of the devastation of lands from recurrent overflows and 295-3 the protection of life and property in the authority from 295-4 uncontrolled floodwaters; 295-5 (4) to provide for the conservation of the waters of 295-6 the Neches River and its tributaries essential for the domestic 295-7 uses of the people of the authority, including all necessary water 295-8 supplies for cities and towns; 295-9 (5) to provide for the irrigation of all lands in the 295-10 authority, lands outside the authority but within the watershed 295-11 area, where irrigation is required for agricultural purposes, or 295-12 may be considered helpful to more profitable agricultural 295-13 production, and to provide for the equitable distribution of water 295-14 to the regional potential requirements for all uses, domestic, 295-15 manufacturing, and irrigation; 295-16 (6) to provide for encouragement and development of 295-17 drainage systems and provisions for drainage of lands in the 295-18 valleys of the Neches River and its tributaries needing drainage 295-19 for profitable agricultural production and for drainage of other 295-20 lands in the watershed area of the authority requiring drainage for 295-21 the most advantageous use; 295-22 (7) to provide for the conservation of all soils 295-23 against destructive erosion and to prevent the increased flood 295-24 dangers caused by destructive soil erosion; 295-25 (8) to control and make storm waters and floodwaters 295-26 available for employment in the development of commercial and 296-1 industrial enterprises in all sections of the watershed area of the 296-2 authority of the Neches River and its tributaries; 296-3 (9) to provide for the control, storage, and 296-4 employment of storm waters and floodwaters in the development and 296-5 distribution of hydroelectric power, where this use may be 296-6 economically coordinated with other and superior uses and 296-7 subordinated to the uses declared by law to be superior; and 296-8 (10) to provide for all purposes for which floodwaters 296-9 and storm waters, when controlled and conserved, may be used in the 296-10 performance of a useful service as contemplated and authorized by 296-11 the provisions of the constitution and the public policy it 296-12 declares. 296-13 (b) The authority may purchase or construct all works 296-14 necessary or convenient for the exercise of the powers and to 296-15 accomplish the purposes specified in this chapter and to purchase 296-16 or otherwise acquire all lands or other property necessary or 296-17 convenient for carrying out those purposes. 296-18 (c) Plans and works provided by the authority and works 296-19 provided under authorization of the authority must give primary 296-20 consideration to the necessary and potential needs for water by or 296-21 within the area in the authority constituting the watershed of the 296-22 Neches River and its tributaries. 296-23 Sec. 262.015. EMINENT DOMAIN. (a) The right of eminent 296-24 domain is expressly conferred on the authority to enable it to 296-25 acquire the fee simple title to, or easement or right-of-way over 296-26 and through, all lands, water, or lands under water, private or 297-1 public, within and outside the authority, necessary or convenient 297-2 to carry out any of the purposes and powers conferred on the 297-3 authority by this chapter. 297-4 (b) Condemnation proceedings shall be under the direction of 297-5 the board and in the name of the authority. The assessment of 297-6 damages and all procedures with regard to condemnation, appeal, and 297-7 payment shall be in conformity with Chapter 21, Property Code. 297-8 Sec. 262.016. FEES AND CHARGES. (a) The board shall 297-9 prescribe fees and charges to be collected for the use of water, 297-10 water connections, or other service. The fees and charges must be 297-11 reasonable and equitable and fully sufficient to produce revenues 297-12 adequate to pay, and from which the board shall pay: 297-13 (1) all expenses necessary to the operation and 297-14 maintenance of the improvements and facilities of the authority, 297-15 including the cost of the acquisition of properties and materials 297-16 necessary to maintain the improvements and facilities in good 297-17 condition and to operate them efficiently, necessary wages and 297-18 salaries of the authority, and such other expenses as may be 297-19 reasonably necessary to the efficient operation of the improvements 297-20 and facilities; 297-21 (2) the annual or semiannual interest on any 297-22 obligations issued under this chapter that are payable out of the 297-23 revenues of the improvements and facilities; and 297-24 (3) the amount required to be paid annually into the 297-25 sinking fund for the payment of any obligations issued under this 297-26 chapter that are payable out of the revenues of the improvements 298-1 and facilities. 298-2 (b) No charges other than those authorized by Subsection (a) 298-3 may be made on the revenues derived from the improvements and 298-4 facilities of the authority if any obligations issued under this 298-5 chapter remain outstanding and unpaid as to principal or interest; 298-6 provided, however, that out of revenues that may be received in 298-7 excess of those required for the purposes listed in Subsection (a) 298-8 the board may pay the cost of improvements and replacements not 298-9 covered by Subsection (a)(1) and may establish a reasonable 298-10 depreciation and emergency fund. 298-11 (c) The fees and charges of the authority may not be in 298-12 excess of what may be reasonably necessary to fulfill the 298-13 obligations imposed on the authority by this chapter. 298-14 Sec. 262.017. EMPLOYEES FOR CONSTRUCTION, OPERATION, AND 298-15 MAINTENANCE. The board may employ managers, engineers, attorneys, 298-16 and all necessary employees to properly construct, operate, and 298-17 maintain the works of the authority and carry out the provisions of 298-18 this chapter and may pay reasonable compensation for such services. 298-19 Sec. 262.018. CONTRACTS, LEASES, AND AGREEMENTS. (a) The 298-20 authority, in addition to the powers otherwise provided by this 298-21 chapter, may enter into all contracts, leases, and agreements 298-22 necessary or convenient to carry out any of the powers granted by 298-23 this chapter. The contracts, leases, and agreements may be entered 298-24 into with any person, real or artificial, any corporation, 298-25 municipal, public, or private, or any government or governmental 298-26 agency, including the United States government and the state. 299-1 (b) The authority may convey or cause to be conveyed any of 299-2 its properties, rights, lands, tenements, easements, improvements, 299-3 reservoirs, dams, canals, plants, laterals, works, and facilities 299-4 to the United States government or any agency of the United States 299-5 and may enter into a lease with the United States government or any 299-6 agency of the United States government relative to such properties 299-7 and obligate itself to pay rent for such properties out of the 299-8 income and revenues of the properties, with or without the 299-9 privilege of purchase. 299-10 (c) Nothing in this section shall be construed to authorize 299-11 the assumption by the authority of any obligation requiring payment 299-12 out of taxes. 299-13 (d) Contracts, leases, and agreements authorized by this 299-14 section shall be approved by resolution of the board and shall be 299-15 executed by the president and attested by the secretary. 299-16 Sec. 262.019. RIGHT TO SUE. The authority may sue and be 299-17 sued. 299-18 Sec. 262.020. APPROVAL OF PLANS AND SPECIFICATIONS. Before 299-19 the authority may establish a diversion point or construct a canal, 299-20 a pumping plant, or other works provided for in this chapter, the 299-21 authority must present to the commission plans and specifications 299-22 of the canal, plant, or other works and obtain the approval of the 299-23 commission. 299-24 Sec. 262.021. ACQUISITION OF LAND FOR PUBLIC PARKS. 299-25 (a) The authority may acquire and own lands within the authority 299-26 by purchase for the purpose of operating and maintaining public 300-1 parks for public recreation and may construct and operate 300-2 improvements and facilities on such lands to accomplish that 300-3 purpose. 300-4 (b) Funds derived from taxation may not be expended in 300-5 purchasing lands or constructing and maintaining improvements and 300-6 facilities under this section. 300-7 Sec. 262.022. ECONOMIC DEVELOPMENT PROGRAMS. (a) The 300-8 authority may sponsor and participate in an economic development 300-9 program within the areas served by the authority to strengthen the 300-10 economic base and further the economic development of the state. 300-11 The program may not be outside the areas served by the authority 300-12 unless the authority has entered into an interlocal agreement with 300-13 an entity under Subsection (c). 300-14 (b) Each program must be established by formal action of the 300-15 board. The board shall: 300-16 (1) establish the goals of the program; 300-17 (2) impose requirements on persons participating in 300-18 and receiving the benefits of the program; and 300-19 (3) provide restrictions, procedures, and budget 300-20 limits that the board determines are necessary to ensure that the 300-21 governmental purposes of this section and the program are achieved. 300-22 (c) A program under this section may involve grants or loans 300-23 of money, services, or equipment to a person engaged in an economic 300-24 development activity, including a public fire-fighting 300-25 organization, governmental body, nonprofit corporation, local or 300-26 regional development council, or other nonprofit or noncommercial 301-1 organization. The authority may provide assistance to a for-profit 301-2 entity if the assistance is necessary or appropriate to carry out 301-3 an economic development program consistent with the purposes of 301-4 this section. 301-5 (d) The authority may employ staff and expend its resources 301-6 to further an economic development program under this section, 301-7 except that the authority may not use money received from an ad 301-8 valorem tax or a general appropriation to further a program. The 301-9 authority may apply for and receive money, grants, or other 301-10 assistance from any source to carry out an economic development 301-11 program under this section. 301-12 (e) The authority and any other public or private person may 301-13 enter into an agreement with respect to an economic development 301-14 program. 301-15 (f) If the authority provides scholarships, grants, loans, 301-16 or financial assistance to a public fire-fighting organization, the 301-17 authority shall adopt guidelines to determine: 301-18 (1) eligibility for the assistance; 301-19 (2) the amount of loans, grants, or other assistance 301-20 the authority may make available to a fire-fighting organization; 301-21 and 301-22 (3) the type of equipment, education, or training for 301-23 which the assistance may be used. 301-24 (g) A determination by the board that a program is intended 301-25 and expected to carry out the program's stated purposes is 301-26 conclusive with respect to whether the purposes of this section are 302-1 satisfied. 302-2 (h) In this section, an economic development program 302-3 includes a community assistance program, a privatization program, 302-4 or any other program designed to: 302-5 (1) encourage economic diversification; 302-6 (2) maintain or expand employment; 302-7 (3) train persons; 302-8 (4) eliminate conditions detrimental to the public 302-9 health, safety, or welfare; 302-10 (5) improve the quality or quantity of services 302-11 essential for the development of viable communities and economic 302-12 growth, including services related to: 302-13 (A) education; 302-14 (B) transportation; 302-15 (C) public safety; 302-16 (D) recreation; 302-17 (E) health care; 302-18 (F) water and wastewater treatment; or 302-19 (G) rural water and sewer development; or 302-20 (6) contribute to the health and development of a 302-21 community to improve the attractiveness of the community to public 302-22 and private enterprises. 302-23 Sec. 262.023. COMMISSION SUPERVISION. In the exercise of 302-24 the powers and duties provided by this chapter, the authority is 302-25 subject to the continuing rights of supervision of the commission. 302-26 The commission may approve or refuse to approve the adequacy of any 303-1 plan or plans for flood control or conservation improvement 303-2 purposes devised by the authority for the achievement of the plans 303-3 and purposes intended in the creation of the authority which 303-4 contemplate improvements supervised by the commission under the 303-5 provisions of general law. 303-6 Sec. 262.024. ADDITIONAL POWERS. (a) The authority has and 303-7 may exercise the functions, powers, authority, rights, and duties 303-8 necessary to accomplish the purposes for which the authority is 303-9 created, including investigating and planning, acquiring, 303-10 constructing, maintaining, and operating all necessary properties, 303-11 lands, rights, tenements, easements, improvements, reservoirs, 303-12 dams, canals, laterals, plants, works, and facilities, including 303-13 the acquisition within or outside the authority of lands, 303-14 rights-of-way, water rights, and all other properties, tenements, 303-15 and easements and other rights incident to, helpful to, or in aid 303-16 of carrying out the purposes of the authority as provided by this 303-17 chapter. 303-18 (b) This chapter shall be liberally construed to effectuate 303-19 the purposes provided by this chapter. 303-20 Sec. 262.025. LOANS. The authority may borrow money for any 303-21 corporate purpose from any department or agency of the United 303-22 States or from any other source, and in evidence of any such debt 303-23 may issue notes, warrants, bonds, certificates of indebtedness, or 303-24 other forms of obligations of the authority, payable solely out of 303-25 the revenues to be derived from the improvements and facilities and 303-26 the operations and services of the improvements and facilities. 304-1 Sec. 262.026. ISSUANCE OF OBLIGATIONS. (a) Each issue of 304-2 obligations authorized under this chapter constitutes a separate 304-3 series and shall be appropriately designated. The obligations 304-4 shall not constitute an indebtedness or pledge of the credit of the 304-5 authority and shall never be paid, in whole or in part, out of any 304-6 funds raised, or to be raised, by taxation, and must contain a 304-7 recital to that effect. Obligations issued under this chapter 304-8 shall be in registered or coupon form and if in coupon form may be 304-9 registrable as to principal only, or as to both principal and 304-10 interest. 304-11 (b) The obligations must bear interest payable annually or 304-12 semiannually, at a rate not to exceed six percent per year and must 304-13 be in denominations and must mature, serially or at one time not 304-14 more than 50 years from their date, in such manner as may be 304-15 provided by the board. 304-16 (c) The principal of and interest on the obligations shall 304-17 be made payable at any place or places within or outside the state 304-18 in the discretion of the board and may be made redeemable at the 304-19 option of the board before maturity at such premium or premiums as 304-20 the board determines. 304-21 (d) The obligations must be signed by the president and 304-22 secretary of the board. The interest coupons attached to the 304-23 obligations may be executed with facsimile signatures of those 304-24 officers. 304-25 (e) The obligations shall be sold in the manner and at the 304-26 time the board determines to be expedient and necessary to the 305-1 interests of the authority, provided, however, that in no event may 305-2 obligations be sold for a price that will result in an interest 305-3 yield of more than six percent computed to maturity according to 305-4 standard bond tables in general use by banks and insurance 305-5 companies. 305-6 (f) If an officer whose signature is on the obligations or 305-7 coupons ceases to be an officer before the delivery of the 305-8 obligations to the purchaser, the signature continues to be valid 305-9 and sufficient for all purposes. 305-10 (g) Obligations issued under this chapter are negotiable 305-11 instruments under the laws of this state. 305-12 Sec. 262.027. REVENUE OBLIGATIONS. (a) Obligations issued 305-13 under this chapter may be issued payable from and secured by the 305-14 pledge of all the revenues derived from the operation of the 305-15 improvements and facilities of the authority, exclusive of any 305-16 revenues derived from taxation or assessments, or may be payable 305-17 from and secured by the pledge of only such revenues as may be 305-18 derived from the operation of the improvements and facilities 305-19 acquired with the proceeds of the sale of the obligations or may be 305-20 payable from and secured by the pledge of a specified part of the 305-21 revenues derived from the operation of the improvements and 305-22 facilities of the authority, all as may be provided in the 305-23 proceedings authorizing the issuance of the obligations. 305-24 (b) If more than one series of obligations is issued under 305-25 the provisions of this chapter payable from and secured by 305-26 identical revenues, priority of lien against the revenues shall 306-1 depend on the time of delivery of the obligations, each series 306-2 enjoying a lien against the revenues prior and superior to that 306-3 enjoyed by any other series of obligations subsequently delivered, 306-4 provided, however, that as to any issue or series of obligations 306-5 that may be authorized as a unit but delivered from time to time in 306-6 blocks, the board may, in the proceedings authorizing the issuance 306-7 of the obligations, provide that all of the obligations of that 306-8 series or issue shall be coequal as to lien regardless of the time 306-9 of delivery. 306-10 Sec. 262.028. SINKING FUND. (a) A resolution or order 306-11 authorizing the issuance of obligations under this chapter shall 306-12 provide for the creation of a sinking fund. Revenues pledged to 306-13 the payment of the obligations shall be paid into the sinking fund 306-14 from month to month as the revenues are collected in amounts fully 306-15 sufficient to pay the principal of and interest on the obligations. 306-16 The money in the sinking fund shall be applied solely to the 306-17 payment of interest on the obligations for the payment of which the 306-18 fund is created and for the retirement of the obligations at or 306-19 before maturity in the manner provided in this section. 306-20 (b) At the time the obligations are authorized, the board 306-21 may provide that all money in the sinking fund in excess of the 306-22 amount required for the payment of the interest on and principal of 306-23 the outstanding obligations, for the period the board may 306-24 determine, shall be expended once each year pursuant to the board's 306-25 order in the purchase of obligations for the account for which the 306-26 sinking fund has been accumulated, if any obligations can be 307-1 purchased at a price that seems reasonable to the board, and may 307-2 provide that, if the obligations contain an option permitting 307-3 retirement before maturity, the excess amounts shall be paid out 307-4 for the purchase of the obligations as provided by this section. 307-5 If the board is unable to purchase sufficient obligations of the 307-6 issue to absorb the entire surplus, the board shall call for 307-7 redemption a sufficient amount of the obligations to absorb, to the 307-8 extent practicable, the entire surplus remaining in the sinking 307-9 fund. 307-10 (c) The resolution or order may provide that any excess in 307-11 the sinking fund that cannot be applied to the purchase or 307-12 redemption of obligations remain in the sinking fund to be used for 307-13 payment of the principal or interest when due or for the subsequent 307-14 call of obligations for purchase or redemption in the manner 307-15 provided in this section. 307-16 Sec. 262.029. COVENANTS WITH HOLDERS. A resolution or order 307-17 authorizing the issuance of obligations under this chapter may 307-18 contain covenants with the holders of the obligations as to the 307-19 management and operation of the improvements and facilities, the 307-20 collection of fees and charges for the use of the improvements and 307-21 facilities, the disposition of the fees and charges, the issuance 307-22 of future obligations and the creation of future liens, mortgages, 307-23 and encumbrances against the improvements and facilities and the 307-24 revenues of the improvements and facilities and other pertinent 307-25 matters considered necessary to ensure the marketability of the 307-26 obligations, provided that the covenants are not inconsistent with 308-1 the provisions of this chapter. 308-2 Sec. 262.030. DEDICATION OF REVENUES. (a) A resolution or 308-3 order authorizing the issuance of obligations under this chapter 308-4 shall provide that the revenues from which the obligations are to 308-5 be paid and which are pledged to the payment of the obligations 308-6 shall, from month to month as the revenues accrue and are received, 308-7 be set apart and placed in the sinking fund and disbursed in the 308-8 manner provided in this chapter. 308-9 (b) The board, in setting and determining the amount of 308-10 revenues to be set aside as provided in Subsection (a), shall 308-11 provide that the amount to be set aside and paid into the sinking 308-12 fund in any year or years shall not be less than a set amount, 308-13 which shall be at least sufficient to provide for the payment of 308-14 the interest on and principal of all obligations maturing and 308-15 becoming payable in each such year, together with a surplus or 308-16 margin of 10 percent in excess of that amount. 308-17 Sec. 262.031. ACTIONS BY HOLDERS; ADMINISTRATOR OR RECEIVER. 308-18 (a) A holder of obligations issued under this chapter or of 308-19 coupons originally attached to the obligations may either at law or 308-20 in equity, by suit, action, mandamus, or other proceeding, enforce 308-21 and compel performance of all duties required by this chapter to be 308-22 performed by the board, including the making and collecting of 308-23 reasonable and sufficient fees or charges for the use of the 308-24 improvements and facilities of the authority, the segregation of 308-25 the income and revenues of the improvements and facilities, and the 308-26 application of the income and revenues as provided by this 309-1 chapter. 309-2 (b) In the event of a default in the payment of the 309-3 principal of or interest on any of the obligations of the 309-4 authority, a holder of the obligation shall be entitled to have an 309-5 administrator or receiver appointed by a court having jurisdiction 309-6 to administer and operate the improvements and facilities, whose 309-7 revenues are pledged to the payment of the obligations, in behalf 309-8 of the authority and the holders of the obligations. The 309-9 administrator or receiver may be authorized to set and collect fees 309-10 and charges sufficient to provide for the payment of operation and 309-11 maintenance expenses as defined by this chapter, to pay any 309-12 obligations or interest coupons outstanding payable from the 309-13 revenues of the improvements and facilities, and to apply the 309-14 income and revenues of the improvements and facilities in 309-15 conformity with the provisions of this chapter and the proceedings 309-16 authorizing the issuance of the obligations. 309-17 Sec. 262.032. TRUST INDENTURE. (a) As additional security 309-18 for the payment of obligations issued under this chapter, the board 309-19 may in its discretion have executed in favor of the holders of the 309-20 obligations an indenture mortgaging and encumbering the 309-21 improvements, facilities, and properties acquired with the proceeds 309-22 of the sale of the obligations, or all of the improvements, 309-23 facilities, and properties of the authority. The indenture may 309-24 also mortgage and encumber the revenues to be derived from the 309-25 operation of the improvements, facilities, and properties and may 309-26 provide in the encumbrance for a grant to a purchaser at 310-1 foreclosure sale under the encumbrance of a franchise to operate 310-2 the improvements, facilities, and properties for a term of not more 310-3 than 50 years from the date of the purchase, subject to all 310-4 applicable laws. 310-5 (b) An indenture under this section may contain terms and 310-6 provisions the board considers proper and shall be enforceable in 310-7 the manner provided by law for the enforcement of other mortgages 310-8 and encumbrances. 310-9 (c) Under a sale ordered under the provisions of the 310-10 mortgage or encumbrance, the purchaser at the sale and the 310-11 purchaser's successors or assigns shall be vested with a permit and 310-12 franchise to maintain and operate the improvements, facilities, and 310-13 properties purchased at the sale with the powers and privileges 310-14 used by the authority in the operation of the improvements, 310-15 facilities, and properties. 310-16 (d) The purchaser of the improvements, facilities, and 310-17 properties at a forclosure sale under this section and the 310-18 purchaser's successors and assigns may operate the improvements, 310-19 facilities, and properties as provided by Subsection (c) or may at 310-20 their option remove all or part of the improvements, facilities, 310-21 and properties for diversion to other purposes. 310-22 (e) General law pertaining to the granting of franchise does 310-23 not apply to the authorization or execution of any mortgage or 310-24 encumbrance entered into under the provisions of this chapter or to 310-25 the granting of any franchise under this chapter. 310-26 Sec. 262.033. SALE PROCEEDS. (a) The proceeds of the sale 311-1 of any obligations issued under this chapter may be deposited in 311-2 the bank or banks agreed on by the purchaser and the board. The 311-3 proceeds of the sale may be deposited and paid out pursuant to the 311-4 terms and conditions agreed on between the purchaser and the board, 311-5 provided that general law pertaining to the deposit of the 311-6 authority's funds in the depository of the authority is not 311-7 applicable to the deposit of the proceeds of the sale. 311-8 (b) Any part of the proceeds of the sale of obligations 311-9 issued under this chapter that may remain unexpended after the 311-10 project for which the obligations were authorized has been 311-11 completed may be paid into the sinking fund for the payment of the 311-12 obligations and be used only for the payment of the principal of 311-13 the obligations or for the purposes of acquiring outstanding 311-14 obligations by purchase in the manner provided by this chapter. 311-15 Sec. 262.034. INSURANCE FOR IMPROVEMENTS AND FACILITIES. 311-16 The board may enter into an agreement with a purchaser of 311-17 obligations issued by the authority to keep all of the improvements 311-18 and facilities whose revenues are pledged to the payment of the 311-19 obligations insured with insurers of good standing against loss or 311-20 damage by fire, water, or flood and against any other hazards 311-21 customarily insured against by private companies operating similar 311-22 properties. The authority may also agree to carry with insurers of 311-23 good standing insurance covering the use and occupancy of such 311-24 property as is customarily carried by private companies. The cost 311-25 of insurance shall be budgeted as maintenance and operation 311-26 expense, and the insurance shall be carried for the benefit of the 312-1 holders of the obligations. 312-2 Sec. 262.035. EXEMPTION FROM TAXATION. Obligations issued 312-3 under the provisions of this chapter are exempt from taxation by 312-4 the state or by any municipal corporation, county, or other 312-5 political subdivision or taxing district of the state. 312-6 Sec. 262.036. REFUNDING OBLIGATIONS. After issuing 312-7 obligations under this chapter the authority may authorize and 312-8 issue its refunding obligations on terms the board deems advisable 312-9 for the purpose of providing for the retirement of any outstanding 312-10 obligations of the authority, either due or to become due. 312-11 Refunding obligations may be either exchanged for like par amounts 312-12 of the outstanding obligations or may be sold and the proceeds of 312-13 the sale so applied. Refunding obligations authorized and issued 312-14 under this section are subject to the provisions of this chapter 312-15 pertaining to the issuance of other obligations and shall be 312-16 secured in all respects to the same extent and be payable from the 312-17 same revenues as were the obligations being refunded. 312-18 Sec. 262.037. APPROVAL AND REGISTRATION OF OBLIGATIONS. 312-19 Before any obligations are issued by the authority, the authority 312-20 shall submit a certified copy of the obligation and of the 312-21 proceedings for the issuance of the obligation, together with any 312-22 additional information that may be required, to the attorney 312-23 general for approval. If approved by the attorney general, the 312-24 obligations shall be issued after registration with the 312-25 comptroller. 312-26 Sec. 262.038. CHAPTER AS FULL AUTHORITY. This chapter, 313-1 without reference to other statutory provisions, constitutes full 313-2 authority for the authorization and issuance of obligations under 313-3 this chapter and for the accomplishment of all purposes authorized 313-4 by this chapter. No proceedings relating to the authorization or 313-5 issuance of obligations is necessary except as required by this 313-6 chapter, and no other provisions of the laws of the state pertinent 313-7 to the authorization or issuance of obligations, the operation and 313-8 maintenance of the improvements and facilities, the granting of 313-9 franchises or permits, or the right to elections or referendum 313-10 petitions or in any way impeding or restricting the carrying out of 313-11 the acts authorized by this chapter applies to any proceedings or 313-12 acts done under this chapter. 313-13 Sec. 262.039. EXISTING WATER RIGHTS. Nothing in this 313-14 chapter affects any rights existing at the time of the formation of 313-15 the authority or existing priorities in the rights to water from 313-16 the source of supply, and neither the formation of the authority or 313-17 a contract for the purchase of water with the authority may ever be 313-18 held to be an abandonment or waiver of those rights or priorities 313-19 or an abandonment of the original point of diversion from the 313-20 source of supply, and all such rights existing at the time of the 313-21 formation of the authority shall be preserved. 313-22 CHAPTER 263. MACKENZIE MUNICIPAL WATER AUTHORITY 313-23 Sec. 263.001. CREATION. (a) A conservation and reclamation 313-24 district to be known as the "Mackenzie Municipal Water Authority" 313-25 is created. The authority is a governmental agency and a body 313-26 politic and corporate. 314-1 (b) The authority is created under and is essential to 314-2 accomplish the purposes of Section 59, Article XVI, Texas 314-3 Constitution. 314-4 Sec. 263.002. DEFINITIONS. In this chapter: 314-5 (1) "Authority" means the Mackenzie Municipal Water 314-6 Authority. 314-7 (2) "Board" means the board of directors of the 314-8 authority. 314-9 (3) "Director" means a member of the board. 314-10 Sec. 263.003. TERRITORY. The authority contains all of the 314-11 territory within the boundaries of the city of Tulia in Swisher 314-12 County, the city of Silverton in Briscoe County, and the cities of 314-13 Lockney and Floydada in Floyd County, as the boundaries of each 314-14 city existed on February 1, 1965. An invalidity in the fixing of 314-15 the boundaries of those cities does not affect the boundaries of 314-16 the territory contained in the authority. It is found and 314-17 determined that all of the territory and taxable property contained 314-18 within the boundaries of those cities will benefit from the works 314-19 and improvements of the authority. 314-20 Sec. 263.004. BOARD OF DIRECTORS. (a) All powers of the 314-21 authority shall be exercised by a board of directors. The 314-22 directors serve staggered two-year terms. The governing body of 314-23 each city contained in the authority shall appoint two directors, 314-24 with the term of one director expiring on April 30 of each 314-25 even-numbered year and the term of one director expiring on April 314-26 30 of each odd-numbered year. 315-1 (b) In April of each year the governing body of each city 315-2 contained in the authority shall appoint a director to succeed the 315-3 director from that city whose term is about to expire. A vacancy 315-4 shall be filled for the unexpired term by the governing body of the 315-5 appropriate city. 315-6 (c) Each director serves for a term of office as provided by 315-7 this section and until a successor is appointed and has qualified. 315-8 (d) A director must reside in and own taxable property in 315-9 the city from which the director is appointed. A member of a 315-10 governing body or an employee of a city is not eligible to serve as 315-11 a director. 315-12 (e) Each director shall subscribe the constitutional oath of 315-13 office and shall give bond for the faithful performance of the 315-14 person's duties as director in the amount of $5,000. The cost of 315-15 the bond shall be paid by the authority. 315-16 (f) A majority of the members of the board constitutes a 315-17 quorum. 315-18 (g) If a director moves from the city from which the 315-19 director is appointed or otherwise ceases to be a director, the 315-20 governing body of the city shall appoint a successor for the 315-21 unexpired term. 315-22 Sec. 263.005. DIRECTOR FEES. (a) Each director may receive 315-23 a fee determined by the board, not to exceed $20, for attending 315-24 each meeting of the board, provided that no more than $40 shall be 315-25 paid to any director for meetings held in any one calendar month. 315-26 (b) Each director is entitled to receive a fee not to exceed 316-1 $20 per day for each day devoted to the business of the authority 316-2 and to reimbursement for actual expenses incurred in attending to 316-3 authority business provided that the service and expense have 316-4 received prior approval by the board. 316-5 Sec. 263.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 316-6 shall elect from among its members a president and a vice president 316-7 of the authority and other officers as the board determines 316-8 necessary. 316-9 (b) The president is the chief executive officer of the 316-10 authority and the presiding officer of the board and has the same 316-11 right to vote as any other director. 316-12 (c) The vice president shall perform all duties and exercise 316-13 all powers conferred by this chapter on the president when the 316-14 president is absent or fails or declines to act, except the 316-15 president's right to vote. 316-16 (d) The board shall appoint a secretary and a treasurer, who 316-17 may or may not be members of the board, and it may combine those 316-18 offices. The treasurer shall give bond in an amount determined by 316-19 the board. The bond shall be conditioned on the treasurer 316-20 faithfully accounting for all money that comes into the treasurer's 316-21 custody as treasurer of the authority. 316-22 (e) The board shall appoint necessary engineers, attorneys, 316-23 and other employees and employ a general manager. The power to 316-24 employ and discharge employees may be conferred on the general 316-25 manager. 316-26 (f) The board shall adopt a seal for the authority. 317-1 Sec. 263.007. GENERAL PROCEDURE FOR ANNEXATION OF TERRITORY. 317-2 (a) Other territory, whether incorporated or unincorporated, may 317-3 be annexed to the authority as provided by this section. 317-4 (b) A petition praying for annexation must: 317-5 (1) be signed by 50 or a majority, whichever number is 317-6 less, of the qualified voters residing in the territory to be 317-7 annexed who own taxable property in the territory; 317-8 (2) be filed with the board; and 317-9 (3) describe the territory to be annexed by metes and 317-10 bounds, or otherwise, unless the territory is the same as that 317-11 contained in a city or town, in which event it will be sufficient 317-12 to state that the territory to be annexed is that contained within 317-13 the boundaries of the city or town. 317-14 (c) If the board finds that the petition complies with, and 317-15 is signed by the number of qualified persons required by, 317-16 Subsection (b), that the annexation would be to the best interest 317-17 of the territory to be annexed and the authority, and that the 317-18 authority will be able to supply water or cause water to be 317-19 supplied to the territory or render sewer service or cause sewer 317-20 service to be rendered to the territory, the board shall adopt a 317-21 resolution stating the conditions, if any, under which the 317-22 territory may be annexed to the authority and shall set a time and 317-23 place for a hearing to be held by the board on the question of 317-24 whether the territory to be annexed will benefit from the 317-25 improvements, works, and facilities then owned or operated or 317-26 contemplated to be owned or operated by the authority or by the 318-1 other functions of the authority. Railroad right-of-way that is 318-2 not situated within the defined limits of an incorporated city or 318-3 town will not benefit from the improvements, works, and facilities 318-4 that the authority is authorized to construct. Railroad 318-5 right-of-way may not be annexed to the authority unless the 318-6 right-of-way is contained within the limit of an incorporated city 318-7 or town that has been annexed to the authority. 318-8 (d) Notice of the adoption of the resolution stating the 318-9 time and place of the hearing shall be published one time in a 318-10 newspaper designated by the board at least 10 days before the date 318-11 of the hearing. The notice must describe the territory to be 318-12 annexed in the same manner in which it is required or permitted by 318-13 this chapter to be described in the petition. 318-14 (e) All interested persons may appear at the hearing and 318-15 offer evidence for or against the proposed annexation. The hearing 318-16 may proceed in the order and under the rules as may be prescribed 318-17 by the board and may be recessed from time to time. If, at the 318-18 conclusion of the hearing, the board finds that lands in the 318-19 territory to be annexed will benefit from present or contemplated 318-20 improvements, works, or facilities of the authority, the board 318-21 shall adopt a resolution making a finding of such benefit, calling 318-22 an election in the territory to be annexed stating the date and the 318-23 place or places for holding the election and the proposition to be 318-24 voted on, and appointing a presiding judge for each voting place, 318-25 who shall appoint the necessary assistant judges and clerks to 318-26 assist in holding the election. 319-1 (f) Notice of the election shall be given by publishing a 319-2 substantial copy of the resolution calling the election one time in 319-3 a newspaper of general circulation in the territory to be annexed 319-4 to the authority at least 10 days before the date set for the 319-5 election. 319-6 (g) Only constitutionally qualified electors who reside in 319-7 the territory to be annexed shall be qualified to vote in the 319-8 election. Returns of the result of the election shall be made to 319-9 the board. 319-10 (h) The board shall canvass the returns of the election and 319-11 adopt an order declaring the results. If the order shows that a 319-12 majority of the votes cast are in favor of annexation, the board 319-13 shall by resolution annex the territory to the authority, and the 319-14 annexation shall be incontestable except in the manner and within 319-15 the time for contesting elections under the Election Code. 319-16 (i) In calling an election on the proposition of the 319-17 annexation of territory, the board may include as a part of the 319-18 same proposition, or as a separate proposition, the question of the 319-19 assumption of that territory's part of the tax-supported bonds of 319-20 the authority then outstanding and those voted but not yet sold and 319-21 the levy of an ad valorem tax on taxable property in the territory 319-22 along with the tax in the rest of the authority for the payment of 319-23 the bonds. The voting on the proposition or propositions shall be 319-24 restricted to constitutionally qualified electors. The territory 319-25 may be annexed only if both propositions receive a majority vote. 319-26 Sec. 263.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY. 320-1 (a) Territory annexed to a city that is initially contained in the 320-2 authority or that is added to the authority may be annexed to the 320-3 authority as provided by this section. 320-4 (b) At any time after final passage of an ordinance or 320-5 resolution annexing territory to a city, the board may issue a 320-6 notice of a hearing on the question of annexing the territory or 320-7 any part of the territory. The notice is sufficient if it states 320-8 the date and place of the hearing and: 320-9 (1) describes the area proposed to be annexed; or 320-10 (2) makes reference to the annexation ordinance or 320-11 resolution of the city. 320-12 (c) The notice must be published one time in a newspaper 320-13 having general circulation in the city that made the annexation. 320-14 The publication must be at least 10 days before the date set for 320-15 the hearing. 320-16 (d) If, at the hearing, the board finds that the territory 320-17 proposed to be annexed will benefit from present or contemplated 320-18 improvements, works, or facilities of the authority, the board 320-19 shall adopt a resolution annexing the territory to the authority. 320-20 Sec. 263.009. ASSUMPTION OF BONDS. After territory is added 320-21 to the authority, the board may call an election over the entire 320-22 authority to determine whether the entire authority as enlarged 320-23 shall assume the tax-supported bonds then outstanding and those 320-24 voted but not yet sold and whether an ad valorem tax shall be 320-25 levied on all taxable property within the authority as enlarged for 320-26 the payment of the bonds, unless the proposition had previously 321-1 been voted at an election held within the annexed territory and 321-2 became lawfully binding on the annexed territory. The election 321-3 shall be called and held and notice of the election given in the 321-4 same manner as elections for the issuance of bonds as provided in 321-5 this chapter. 321-6 Sec. 263.010. APPOINTMENT OF DIRECTORS IN ANNEXED 321-7 TERRITORIES. If the territory of a city is annexed to the 321-8 authority, the governing body of the city shall appoint two 321-9 directors. The term of one appointee shall expire on the following 321-10 April 30 and the term of the other appointee shall expire on April 321-11 30 a year later. Thereafter the directors shall be appointed as 321-12 provided in Section 263.004. 321-13 Sec. 263.011. WATER APPROPRIATION PERMITS. The authority 321-14 may obtain appropriation permits from the commission through 321-15 appropriate hearings as provided by Chapter 11. 321-16 Sec. 263.012. DAMS AND OTHER FACILITIES FOR DIVERTING, 321-17 IMPOUNDING, STORING, TREATING, AND TRANSPORTING WATER. The 321-18 authority may acquire or construct within or outside the boundaries 321-19 of the authority dams and all works, plants, and other facilities, 321-20 including underground water storage facilities, necessary for the 321-21 purpose of diverting, impounding, storing, treating, and 321-22 transporting water to cities and others for municipal, domestic, 321-23 industrial, and mining purposes. A dam or other facility for 321-24 impounding water may not be constructed unless the plan for the 321-25 facility is approved by the commission. 321-26 Sec. 263.013. ACQUISITION AND SALE OF PROPERTY; CONSTRUCTION 322-1 OF FACILITIES; WATER RIGHTS. (a) The authority may acquire land 322-2 within and outside the boundaries of the authority and may 322-3 construct, lease, or otherwise acquire all works, plants, and other 322-4 facilities necessary for the purpose of diverting, further 322-5 impounding, or storing water, treating the water, and transporting 322-6 it to cities and others for municipal, domestic, industrial, and 322-7 mining purposes. 322-8 (b) The authority may sell water within and outside the 322-9 boundaries of the authority and may acquire by purchase or 322-10 contract, in any county in which a part of the authority is 322-11 located, lands in fee simple title or water rights without surface 322-12 title and may develop and beneficially use such groundwater; 322-13 provided, however, that the authority shall be limited to a 322-14 quantity of groundwater as may be reasonably necessary, and the 322-15 withdrawal may not exceed two acre-feet of water per year for each 322-16 acre of surface area purchased or water rights otherwise acquired 322-17 by the authority overlying the groundwater reservoir. 322-18 (c) Subject to the terms of any deed of trust issued by the 322-19 authority, the authority may sell, trade, or otherwise dispose of 322-20 any real or personal property determined by the board not to be 322-21 needed for authority purposes. 322-22 (d) As a necessary aid to the conservation, control, 322-23 preservation, and distribution of water for beneficial use, the 322-24 authority may construct, own, and operate sewage gathering, 322-25 transmission, and disposal facilities, may charge for such service, 322-26 and may make contracts in reference to such facilities and services 323-1 with municipalities and others. 323-2 Sec. 263.014. EMINENT DOMAIN. (a) For the purpose of 323-3 carrying out a power or authority conferred by this chapter, except 323-4 the acquisition of groundwater rights, the authority may acquire, 323-5 within or outside the boundaries of the authority, the fee simple 323-6 title to land and other property and easements, including land 323-7 needed for a reservoir and dam and flood easements above the 323-8 probable high-water line around the reservoir, by condemnation in 323-9 the manner and with the same power as conferred on counties of the 323-10 state by Chapter 21, Property Code. The authority is a municipal 323-11 corporation within the meaning of Section 21.021 (c), Property 323-12 Code. 323-13 (b) The authority may not condemn any property that is owned 323-14 by any persons, firms, private corporations, or receivers, or their 323-15 trustees, who have the power of eminent domain, except that the 323-16 authority may condemn an easement. The amount and character of 323-17 interest in land, other property, and easements to be acquired 323-18 through condemnation shall be determined by the board. The 323-19 authority has the powers provided by Section 49.221 with reference 323-20 to making surveys and attending to other business of the 323-21 authority. 323-22 (c) If the authority, in the exercise of its power of 323-23 eminent domain or police power or any other power, requires the 323-24 relocation, raising, lowering, rerouting, change in grade, or 323-25 alteration in construction of any road or highway; railroad; 323-26 electric transmission, telegraph, or telephone lines, conduits, 324-1 poles, properties, or facilities; or pipelines, all such 324-2 relocation, raising, lowering, rerouting, change in grade, or 324-3 alteration of construction shall be accomplished at the sole 324-4 expense of the authority. In this section, "sole expense" means 324-5 the actual cost of such lowering, rerouting, change in grade, or 324-6 alteration of construction in providing comparable replacement 324-7 without enhancement of the facilities, after deducting the net 324-8 salvage value derived from the old facility. 324-9 Sec. 263.015. CONTRACTS; BIDDING. A construction contract 324-10 requiring an expenditure of more than $15,000 may only be made 324-11 after publication of a notice to bidders once each week for two 324-12 weeks before the contract is awarded. The notice is sufficient if 324-13 it states the time and location the bids will be opened, states the 324-14 general nature of the work to be done or the material, equipment, 324-15 or supplies to be purchased, and states where and the terms on 324-16 which copies of the plans and specifications may be obtained. The 324-17 publication must be in a newspaper published in each county in 324-18 which a portion of the authority is located, and such newspapers 324-19 shall be designated or approved by the board. 324-20 Sec. 263.016. ISSUANCE OF BONDS. (a) For the purpose of 324-21 carrying out any power or authority conferred by this chapter, the 324-22 authority may issue negotiable bonds to be payable from such 324-23 revenues or taxes or both revenues and taxes of the authority as 324-24 are pledged by resolution of the board. 324-25 (b) Bonds must be authorized by resolution of the board. 324-26 The bonds must be issued in the name of the authority, signed by 325-1 the president or vice president, and attested by the secretary and 325-2 must bear the seal of the authority. The signatures of the 325-3 president or vice president, of the secretary, or of both may be 325-4 printed or lithographed on the bonds if authorized by the board, 325-5 and the seal of the authority may be impressed on the bonds or may 325-6 be printed or lithographed on the bonds. 325-7 (c) Bonds must mature serially or otherwise in not to exceed 325-8 40 years from their date and may be sold at a price and under terms 325-9 determined by the board to be the most advantageous reasonably 325-10 obtainable, provided that the interest cost to the authority, 325-11 including the discount, if any, does not exceed six percent per 325-12 year. Within the discretion of the board, bonds may be made 325-13 callable prior to maturity at such times and prices as may be 325-14 prescribed in the resolution authorizing the bonds and may be made 325-15 registrable as to principal or as to both principal and interest. 325-16 (d) Bonds may be issued in more than one series and from 325-17 time to time as required for carrying out the purposes of this 325-18 chapter. 325-19 (e) Bonds may be secured by a pledge of all or part of the 325-20 net revenues of the authority, of the net revenues of one or more 325-21 contracts made before or after the bonds are issued, or of other 325-22 revenues or income specified by resolution of the board or in the 325-23 trust indenture. A pledge may reserve the right, under conditions 325-24 in the pledge specified, to issue additional bonds that will be on 325-25 a parity with or subordinate to the bonds being issued. 325-26 (f) The authority may issue bonds payable from ad valorem 326-1 taxes to be levied on all taxable property in the authority or may 326-2 issue bonds secured by and payable from both those taxes and the 326-3 revenues of the authority. If bonds are issued payable wholly or 326-4 partially from ad valorem taxes, the board shall levy a tax 326-5 sufficient to pay the bonds and the interest on the bonds as the 326-6 bonds and interest become due. The rate of the tax for any year 326-7 may be set after giving consideration to the money received from 326-8 the pledged revenues available for payment of principal and 326-9 interest to the extent and in the manner permitted by the 326-10 resolution authorizing the issuance of the bonds. 326-11 (g) If bonds payable wholly from revenues are issued, the 326-12 board shall set, and from time to time revise, rates of 326-13 compensation for water sold and services rendered by the authority 326-14 sufficient to pay the expense of operating and maintaining the 326-15 facilities of the authority, to pay the bonds as they mature and 326-16 the interest as it accrues, and to maintain the reserve and other 326-17 funds as provided in the resolution authorizing the bonds. If 326-18 bonds payable partially from revenues are issued, the board shall 326-19 set, and from time to time revise, rates of compensation for water 326-20 sold and services rendered by the authority sufficient to assure 326-21 compliance with the resolution authorizing the bonds or the trust 326-22 indenture securing the bonds. 326-23 (h) From the proceeds of the sale of the bonds, the 326-24 authority may set aside an amount for the payment of interest 326-25 expected to accrue during construction and for a reserve interest 326-26 and sinking fund and such other funds as may be provided in the 327-1 resolution authorizing the bonds or in the trust indenture. 327-2 Proceeds from the sale of the bonds may also be used for the 327-3 payment of all expenses necessarily incurred in accomplishing the 327-4 purpose for which this authority is created, including expenses of 327-5 issuing and selling the bonds. The proceeds from the sale of the 327-6 bonds and other funds may be invested in such securities as are 327-7 specified in the bond resolution or trust indenture. 327-8 (i) In the event of a default or a threatened default in the 327-9 payment of principal of or interest on bonds payable wholly or 327-10 partially from revenues, any court of competent jurisdiction may, 327-11 on petition of the holders of outstanding bonds, appoint a receiver 327-12 with authority to collect and receive all income of the authority 327-13 except taxes, employ and discharge agents and employees of the 327-14 authority, take charge of the authority's funds on hand (except 327-15 funds received from taxes, unless commingled), and manage the 327-16 proprietary affairs of the authority without consent or hindrance 327-17 by the board. The receiver may also be authorized to sell or make 327-18 contracts for the sale of water or renew the contracts with the 327-19 approval of the court appointing the receiver. The court may vest 327-20 the receiver with other powers and duties the court finds necessary 327-21 for the protection of the holders of the bonds. The resolution 327-22 authorizing the issuance of the bonds or the trust indenture 327-23 securing them may limit or qualify the rights of the holders of 327-24 less than all of the outstanding bonds payable from the same source 327-25 to institute or prosecute litigation affecting the authority's 327-26 property or income. 328-1 Sec. 263.017. REFUNDING BONDS. (a) The authority may issue 328-2 refunding bonds for the purpose of refunding outstanding bonds 328-3 authorized by this chapter and interest on the bonds. Refunding 328-4 bonds may be issued to refund more than one series of outstanding 328-5 bonds and may combine the pledges for the outstanding bonds for the 328-6 security of the refunding bonds, and the refunding bonds may be 328-7 secured by other or additional revenues and mortgage liens. 328-8 (b) The provisions of this chapter regarding the issuance of 328-9 other bonds by the authority, their security, their approval by the 328-10 attorney general, and the remedies of the holders shall be 328-11 applicable to refunding bonds. Refunding bonds shall be registered 328-12 by the comptroller on surrender and cancellation of the bonds to be 328-13 refunded, but in lieu of that procedure, the resolution authorizing 328-14 the issuance of the refunding bonds may provide that the refunding 328-15 bonds shall be sold and the proceeds of the sale deposited in the 328-16 bank where the original bonds are payable, in which case the 328-17 refunding bonds may be issued in an amount sufficient to pay the 328-18 principal of and the interest on the original bonds to their option 328-19 date or maturity date, and the comptroller shall register the 328-20 refunding bonds without concurrent surrender and cancellation of 328-21 the original bonds. Refunding bonds may be issued without an 328-22 election. 328-23 Sec. 263.018. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE 328-24 LIEN. (a) Bonds, including refunding bonds, authorized by this 328-25 chapter that are not payable wholly from ad valorem taxes may be 328-26 additionally secured by a trust indenture under which the trustee 329-1 may be a bank with trust powers located either within or outside 329-2 the state. The bonds may, within the discretion of the board, be 329-3 additionally secured by a deed of trust or mortgage lien on 329-4 physical properties of the authority and all franchises, easements, 329-5 water rights and appropriation permits, leases and contracts, and 329-6 all rights appurtenant to the properties, vesting in the trustee 329-7 power to sell the properties for the payment of indebtedness, power 329-8 to operate the properties, and all other powers and authority for 329-9 the further security of the bonds. 329-10 (b) The trust indenture, regardless of the existence of a 329-11 deed of trust or mortgage lien on the properties, may: 329-12 (1) contain provisions prescribed by the board for the 329-13 security of the bonds and the preservation of the trust estate; 329-14 (2) make provision for amendment or modification of 329-15 the trust indenture and the issuance of bonds to replace lost or 329-16 mutilated bonds; 329-17 (3) condition the right to expend authority money or 329-18 sell authority property on approval of a registered professional 329-19 engineer selected as provided in the trust indenture; and 329-20 (4) make provision for the investment of funds of the 329-21 authority. 329-22 (c) A purchaser under a sale under a deed of trust lien, 329-23 where one is given, shall be the absolute owner of the properties, 329-24 facilities, and rights purchased and shall have the right to 329-25 maintain and operate the properties, facilities, and rights. 329-26 Sec. 263.019. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION. 330-1 (a) Bonds payable wholly or partially from ad valorem taxes, 330-2 except refunding bonds, may not be issued unless authorized by an 330-3 election at which only the constitutionally qualified electors who 330-4 reside in the authority are allowed to vote and a majority of the 330-5 votes cast in each city contained in the authority are in favor of 330-6 the issuance of the bonds. If a majority of the votes cast in any 330-7 city contained in the authority are against the issuance of the 330-8 bonds, the board may, in its discretion, adopt a resolution 330-9 detaching the territory of that city from the authority; provided, 330-10 however, that after bonds payable from taxes have been issued by 330-11 the authority and while any such bonds are outstanding, no 330-12 territory shall be detached from the authority. Bonds not payable 330-13 wholly or partially from ad valorem taxes may be issued without an 330-14 election. 330-15 (b) An election for the authorization of bonds may be called 330-16 by the board without a petition. The resolution calling the 330-17 election shall specify the time and locations of holding the 330-18 election, the purpose for which the bonds are to be issued, the 330-19 maximum amount of the bonds, the maximum maturity of the bonds, the 330-20 form of the ballot, and the presiding judge for each voting place. 330-21 The presiding judge serving at each voting place shall appoint one 330-22 assistant judge and at least two clerks to assist in holding the 330-23 election. Notice of the election shall be given by publishing a 330-24 substantial copy of the notice in a newspaper published in each 330-25 city contained in the authority for two consecutive weeks. The 330-26 first publication must be at least 21 days before the date of the 331-1 election. In a city in which no newspaper is published, notice 331-2 shall be given by posting a copy of the resolution in three public 331-3 places in the city at least 21 days before the date of the 331-4 election. 331-5 (c) The returns of the election shall be made to and 331-6 canvassed by the board. 331-7 (d) Elections held under this section shall be governed by 331-8 the Election Code except as otherwise provided by this chapter. 331-9 Sec. 263.020. BOND APPROVAL AND REGISTRATION. After bonds, 331-10 including refunding bonds, are authorized by the authority, the 331-11 bonds and the record relating to their issuance shall be submitted 331-12 to the attorney general for examination as to the validity of the 331-13 bonds. If the bonds recite that they are secured by a pledge of 331-14 the proceeds of a contract previously made between the authority 331-15 and a city or other governmental agency, authority, or district, a 331-16 copy of the contract and the proceedings of the city or other 331-17 governmental agency, authority, or district authorizing the 331-18 contract shall also be submitted to the attorney general. If the 331-19 attorney general finds that the bonds have been authorized and that 331-20 the contract has been made in accordance with the constitution and 331-21 laws of the state, the attorney general shall approve the bonds and 331-22 the contract, and the bonds shall then be registered by the 331-23 comptroller. After their approval and registration, the bonds and 331-24 the contract, if any, are valid and binding and are incontestable 331-25 for any cause. 331-26 Sec. 263.021. CONTRACTS WITH CITIES AND OTHERS. (a) The 332-1 authority may enter into contracts with cities and others for 332-2 supplying water to them. The authority may also contract with a 332-3 city for the rental or leasing of, or for the operation of, the 332-4 water production, water supply, and water filtration or 332-5 purification and water supply facilities of the city for such 332-6 consideration as the authority and the city may agree. The 332-7 contract may be on the terms and for the time as the parties may 332-8 agree, and the contract may provide that it shall continue in 332-9 effect until bonds specified in the contract and refunding bonds 332-10 issued in lieu of those bonds are paid. 332-11 (b) If an election is held in any city then contained in the 332-12 authority on the question of whether the governing body of the city 332-13 shall be authorized to make a water supply contract with the 332-14 authority and the result of the election is that the governing body 332-15 shall not be authorized to make such a contract with the authority, 332-16 the board may, in its discretion, adopt a resolution detaching that 332-17 city from the authority; provided, however, that after bonds 332-18 payable from taxes have been issued by the authority and while any 332-19 such bonds are outstanding, no territory shall be detached from the 332-20 authority. 332-21 (c) In addition to selling its bonds to the Texas Water 332-22 Development Board and securing loans from that board, the authority 332-23 may enter into a contract or contracts with the board under which 332-24 the board or the state will own a portion of the water storage 332-25 facilities, as provided in Chapter 16, in a reservoir or reservoirs 332-26 to be constructed by the authority. The authority may include in 333-1 the contract or contracts the obligation to purchase such storage 333-2 facilities from the state and a provision to accumulate a fund for 333-3 that purpose by setting and maintaining adequate rates and charges 333-4 to be paid by cities previously and subsequently contracting to buy 333-5 water from the authority. 333-6 Sec. 263.022. AUTHORITY DEPOSITORY. (a) The board shall 333-7 designate one or more banks within the authority to serve as 333-8 depository for the funds of the authority. All funds of the 333-9 authority shall be deposited in the depository bank or banks, 333-10 except that bond proceeds and funds pledged to pay bonds may, to 333-11 the extent provided in the indenture, be deposited with the trustee 333-12 bank named in the trust indenture and except that funds shall be 333-13 remitted to the bank of payment for the payment of principal of and 333-14 interest on bonds. To the extent that funds in the depository 333-15 banks and the trustee bank are not insured by the Federal Deposit 333-16 Insurance Corporation, the funds shall be secured in the manner 333-17 provided by law for the security of county funds. 333-18 (b) Before designating a depository bank or banks, the board 333-19 shall issue a notice stating the time and the location the board 333-20 will meet to designate the depository or depositories and inviting 333-21 the banks in the authority to submit applications to be designated 333-22 depositories. The notice must be mailed to each bank in the 333-23 authority. 333-24 (c) At the time stated in the notice, the board shall 333-25 consider the applications and the management and condition of the 333-26 banks filing them and shall designate as the depository or 334-1 depositories the bank or banks that offer the most favorable terms 334-2 and conditions for the handling of the funds of the authority and 334-3 which the board finds have proper management and are in condition 334-4 to warrant the handling of authority funds. Membership on the 334-5 board of an officer or director of a bank shall not disqualify that 334-6 bank from being designated as a depository. 334-7 (d) If no applications are received by the time stated in 334-8 the notice, the board shall designate a bank or banks within or 334-9 outside the authority on the terms and conditions the board 334-10 determines are advantageous to the authority. 334-11 (e) The term of service for depositories shall be prescribed 334-12 by the board. 334-13 Sec. 263.023. WATER APPROPRIATION PERMITS; ACQUISITION OF 334-14 STORAGE CAPACITY AND OF WATER. The authority may acquire water 334-15 appropriation permits from owners of permits. The authority may 334-16 lease or acquire rights in and to storage and storage capacity in 334-17 any reservoir constructed or to be constructed by any person, firm, 334-18 corporation, or public agency or from the United States government 334-19 or any of its agencies. 334-20 Sec. 263.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 334-21 DEPOSITS. (a) Bonds of the authority are legal and authorized 334-22 investments for banks, savings banks, trust companies, building and 334-23 loan associations, savings and loan associations, insurance 334-24 companies, fiduciaries, trustees, and guardians and for the sinking 334-25 fund of cities, towns, villages, counties, school districts, or 334-26 other political corporations or subdivisions of the state. 335-1 (b) The bonds are eligible to secure the deposit of all 335-2 public funds of the state and all public funds of cities, towns, 335-3 villages, counties, school districts, or other political 335-4 corporations or subdivisions of the state. The bonds are lawful 335-5 and sufficient security for the deposits to the extent of their 335-6 value when accompanied by all unmatured coupons appurtenant to the 335-7 bonds. 335-8 Sec. 263.025. BONDS EXEMPT FROM TAXATION. The 335-9 accomplishment of the purposes stated in this chapter is for the 335-10 benefit of the people of the state and for the improvement of their 335-11 properties and industries, and the authority, in carrying out the 335-12 purposes of this chapter, will be performing an essential public 335-13 function under Section 59, Article XVI, Texas Constitution. The 335-14 authority may not be required to pay any tax or assessment on the 335-15 project or any part of the project, and the bonds issued under this 335-16 chapter and the transfer of and income from the bonds, including 335-17 the profits made on the sale of the bonds, shall at all times be 335-18 free from taxation within the state. 335-19 Sec. 263.026. TAX ROLLS. (a) The tax rolls of the cities 335-20 located within the authority and within annexed territory 335-21 constitute the tax rolls of the authority until assessment and tax 335-22 rolls are made by the authority. 335-23 (b) Before the sale and delivery of authority bonds that are 335-24 payable wholly or partially from ad valorem taxes, the board shall 335-25 appoint a tax assessor and collector and a board of equalization 335-26 and shall cause taxes to be assessed, valuations to be equalized, 336-1 and tax rolls to be prepared. General laws applicable to water 336-2 control and improvement districts with reference to tax assessors 336-3 and collectors, boards of equalization, tax rolls, tax liens, and 336-4 the levy and collection of taxes and delinquent taxes shall be 336-5 applicable to the authority, except that the board of equalization, 336-6 to be appointed each year by the board, shall consist of one member 336-7 residing in each city contained in the authority. 336-8 (c) The board may make contracts with one or more cities in 336-9 the authority for the collection of authority taxes. 336-10 (d) Taxes levied by the authority shall be ad valorem. 336-11 Sec. 263.027. ADOPTION OF RULES AND REGULATIONS. (a) The 336-12 board may adopt and promulgate all reasonable rules and regulations 336-13 to secure, maintain, and preserve the potable and sanitary 336-14 condition of all water in and to flow into any reservoir owned by 336-15 the authority to prevent the waste or unauthorized use of water, to 336-16 regulate residence, hunting, fishing, boating, and camping, and all 336-17 recreational and business privileges, along, around, or on any 336-18 reservoir or any body of land or easement owned by the authority. 336-19 (b) The authority may prescribe a reasonable penalty for the 336-20 breach of a rule or regulation of the authority, not to exceed a 336-21 fine of $200 or imprisonment for 30 days, or both such fine and 336-22 imprisonment. The penalty shall be in addition to any other 336-23 penalties provided by the laws of the state and may be enforced by 336-24 complaints filed in the appropriate court of jurisdiction; 336-25 provided, however, that no rule or regulation that provides a 336-26 penalty for a violation of the rule or regulation shall be in 337-1 effect, as to enforcement of the penalty, until five days after the 337-2 authority has caused a substantive statement of the rule or 337-3 regulation and the penalty for the violation to be published once a 337-4 week for two consecutive weeks in the county or counties in which 337-5 the reservoir is located. The substantive statement to be 337-6 published shall be as condensed as is possible to afford sufficient 337-7 notice as to the act forbidden by the rule or regulation. A single 337-8 notice may embrace any number of rules or regulations. The notice 337-9 must provide the information that breach of the rule or regulation 337-10 will subject the violator to the imposition of a penalty. The 337-11 notice must also state that the full text of the rule or regulation 337-12 is on file in the principal office of the authority and may be read 337-13 by any interested person. Five days after the second publication 337-14 of the notice required by this section, the advertised rule or 337-15 regulation shall be in effect, and ignorance of the rule or 337-16 regulation shall not constitute a defense to prosecution for the 337-17 enforcement of a penalty. After the required publication, the 337-18 rules and regulations authorized by this section shall judicially 337-19 be known to the courts and shall be considered similar in nature to 337-20 a valid penal ordinance of a city. 337-21 (c) A duly constituted peace officer may make arrests when 337-22 necessary to prevent or stop the commission of any offense against 337-23 the rules or regulations of the authority or against the laws of 337-24 the state, when the offense or threatened offense occurs on or in 337-25 any land, water, or easement owned or controlled by the authority, 337-26 or may make an arrest at any place in the case of an offense 338-1 involving injury or detriment to any property owned or controlled 338-2 by the authority. 338-3 Sec. 263.028. PARKS AND RECREATION FACILITIES. The 338-4 authority may establish or otherwise provide for public parks and 338-5 recreation facilities and may acquire land for such purposes within 338-6 or outside the authority; provided, however, that no money received 338-7 from taxation or from bonds payable wholly or partially from 338-8 taxation shall be used to provide for the parks or recreation 338-9 facilities. 338-10 Sec. 263.029. AUTHORITY OF PEACE OFFICERS. The authority 338-11 may employ and constitute its own peace officers, and any such 338-12 officer or any other duly constituted peace officer may make an 338-13 arrest when necessary to prevent or stop the commission of any 338-14 offense against the regulations of the authority or against the 338-15 laws of the state, when any such offense or threatened offense 338-16 occurs on or in any land, water, or easement owned or controlled by 338-17 the authority, or may make an arrest at any place in the case of an 338-18 offense involving injury or detriment to any property owned or 338-19 controlled by the authority. 338-20 Sec. 263.030. EFFECT ON PRIORITY OF WATER USE. Nothing in 338-21 this chapter shall be interpreted as amending or repealing Section 338-22 11.024, which provides for priorities of the use of water. 338-23 CHAPTER 264. NORTH CENTRAL TEXAS MUNICIPAL WATER AUTHORITY 338-24 Sec. 264.001. CREATION. (a) A conservation and reclamation 338-25 district to be known as the "North Central Texas Municipal Water 338-26 Authority" is created. The authority is a governmental agency and 339-1 a body politic and corporate. 339-2 (b) The authority is created under and is essential to 339-3 accomplish the purposes of Section 59, Article XVI, Texas 339-4 Constitution. 339-5 Sec. 264.002. DEFINITIONS. In this chapter: 339-6 (1) "Authority" means the North Central Texas 339-7 Municipal Water Authority. 339-8 (2) "Board" means the board of directors of the 339-9 authority. 339-10 (3) "Director" means a member of the board. 339-11 Sec. 264.003. TERRITORY. The authority contains all of the 339-12 territory contained in the boundaries of the cities of Goree, Knox 339-13 City, and Munday in Knox County and the city of Haskell in Haskell 339-14 County, as the boundaries of each city are set forth in ordinances 339-15 or resolutions passed or adopted before April 19, 1957. No 339-16 invalidity of any of those ordinances or resolutions or the fixing 339-17 of the boundaries as set out in those ordinances shall affect the 339-18 boundaries of the territory contained in the authority. The 339-19 legislature finds and determines that all of the territory and 339-20 taxable property contained within the boundaries set forth in the 339-21 ordinances or resolutions will benefit from the works and 339-22 improvements of the authority and that the territory described in 339-23 the ordinances or resolutions shall be contained within the 339-24 authority whether lawfully contained within any of the cities or 339-25 not. 339-26 Sec. 264.004. BOARD OF DIRECTORS. (a) All powers of the 340-1 authority shall be exercised by a board of directors. Each 340-2 director is appointed by a majority vote of the governing body of 340-3 the city in which the director resides. 340-4 (b) Two directors are appointed from each city in the 340-5 authority. 340-6 (c) Directors serve staggered two-year terms. In May of 340-7 each year the governing body of each city shall appoint a director 340-8 for the two-year term beginning June 1 of that year. 340-9 (d) Each director serves for a term of office as provided by 340-10 this section and until a successor is appointed and has qualified. 340-11 (e) A director must reside in and own taxable property in 340-12 the city from which the director is appointed. A member of a 340-13 governing body of a city or an employee of a city is not eligible 340-14 to serve as a director. 340-15 (f) A director shall subscribe the constitutional oath of 340-16 office and shall give bond for the faithful performance of the 340-17 director's duties in the amount of $5,000, the cost of which shall 340-18 be paid by the authority. 340-19 (g) A majority of the members of the board constitute a 340-20 quorum. 340-21 (h) If a director moves from the city from which the 340-22 director is appointed or otherwise ceases to be a director, the 340-23 governing body of the city shall appoint a successor director for 340-24 the unexpired term. 340-25 Sec. 264.005. DIRECTOR FEES. (a) Each director is entitled 340-26 to receive a fee not to exceed $20 for attending each meeting of 341-1 the board; provided, however, that no more than $40 may be paid to 341-2 a director for meetings held in any one calendar month. 341-3 (b) Each director is entitled to receive a fee not to exceed 341-4 $20 per day for each day devoted to the business of the authority 341-5 and reimbursement for actual expenses incurred in attending to 341-6 authority business provided that such service and expense are 341-7 expressly approved by the board. 341-8 Sec. 264.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 341-9 shall elect from among its members a president and a vice president 341-10 of the authority and other officers as in the judgment of the board 341-11 are necessary. 341-12 (b) The president is the chief executive officer of the 341-13 authority and the presiding officer of the board and has the same 341-14 right to vote as any other director. 341-15 (c) The vice president shall perform all duties and exercise 341-16 all powers conferred by this chapter on the president when the 341-17 president is absent or fails or declines to act, except the 341-18 president's right to vote. 341-19 (d) The board shall appoint a secretary and a treasurer, who 341-20 may or may not be members of the board, and it may combine those 341-21 offices. The treasurer shall give bond in an amount required by 341-22 the board. The bond must be conditioned on the treasurer 341-23 faithfully accounting for all funds that come into the person's 341-24 custody as treasurer of the authority. 341-25 (e) The board shall appoint necessary engineers, attorneys, 341-26 and other employees and shall employ a general manager. The power 342-1 to employ and discharge employees may be conferred upon the general 342-2 manager. 342-3 (f) The board shall adopt a seal for the authority. 342-4 Sec. 264.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES. 342-5 (a) Other territory situated within Baylor, Haskell, and Knox 342-6 counties may be annexed to the authority as provided by this 342-7 section. 342-8 (b) A petition for annexation must: 342-9 (1) be signed by 50 or a majority, whichever number is 342-10 less, of the qualified voters of the territory to be annexed who 342-11 own taxable property in the territory being annexed and who have 342-12 duly rendered the property to the city, if situated within a city 342-13 or town, or county for taxation; 342-14 (2) be filed with the board; and 342-15 (3) describe the territory to be annexed by metes and 342-16 bounds or otherwise unless the territory is the same as that 342-17 contained in a city or town, in which event it is sufficient to 342-18 state that the territory to be annexed is that contained within the 342-19 city or town. 342-20 (c) If the board finds that the petition complies with and 342-21 is signed by the number of qualified persons required under 342-22 Subsection (b), that the annexation would be in the interest of the 342-23 territory to be annexed and the authority, and that the authority 342-24 will be able to supply water to the territory to be annexed or 342-25 cause water to be supplied to the territory to be annexed, the 342-26 board shall adopt a resolution stating the conditions, if any, 343-1 under which the territory may be annexed to the authority and 343-2 requesting the commission to annex the territory to the authority. 343-3 The resolution shall be conclusive of the legal sufficiency of the 343-4 petition and the qualifications of the signers. A certified copy 343-5 of the resolution and the petition shall be filed with the 343-6 commission. 343-7 (d) The commission shall adopt a resolution declaring its 343-8 intention to call an election in the territory to be annexed for 343-9 the purpose of submitting the proposition of whether the territory 343-10 shall be annexed to the authority. The commission shall set a time 343-11 and place for a hearing to be held by the commission on the 343-12 question of whether the territory to be annexed will benefit from 343-13 the improvements, works, and facilities then owned or operated or 343-14 contemplated to be owned or operated by the authority or will 343-15 benefit from the other functions of the authority. Railroad 343-16 right-of-way that is not situated within the defined limits of an 343-17 incorporated city or town will not benefit from the improvements, 343-18 works, and facilities that the authority is authorized to 343-19 construct. Railroad right-of-way may not be annexed to the 343-20 authority unless the right-of-way is contained within the limits of 343-21 an incorporated city or town that has been annexed to the 343-22 authority. 343-23 (e) Notice of the adoption of the resolution stating the 343-24 time and place of the hearing addressed to the citizens and owners 343-25 of property in the territory to be annexed shall be published one 343-26 time in a newspaper designated by the commission at least 10 days 344-1 before the date of the hearing. The notice must describe the 344-2 territory to be annexed in the same manner in which it is required 344-3 or permitted by this chapter to be described in the petition. 344-4 (f) All interested persons may appear at the hearing and 344-5 offer evidence for or against the intended annexation. The hearing 344-6 may proceed in the order and under the rules as may be prescribed 344-7 by the commission and may be recessed from time to time. If, at 344-8 the conclusion of the hearing, the commission finds that all of the 344-9 lands in the territory to be annexed will benefit from the present 344-10 or contemplated improvements, works, or facilities of the 344-11 authority, the commission shall adopt a resolution calling an 344-12 election in the territory to be annexed stating the date of the 344-13 election and the place or places for holding and appointing a 344-14 presiding judge for each voting place, who shall appoint the 344-15 necessary assistant judges and clerks to assist in holding the 344-16 election. 344-17 (g) Notice of the election, stating the date and places for 344-18 holding the election, the proposition to be voted on, and the 344-19 conditions under which the territory may be annexed, or making 344-20 reference to the resolution of the board for that purpose, shall be 344-21 published one time in a newspaper designated by the commission at 344-22 least 10 days before the date set for the election. 344-23 (h) Only qualified electors who reside in the territory to 344-24 be annexed may vote in the election. Returns of the election shall 344-25 be made to the commission. 344-26 (i) The commission shall canvass the returns of the election 345-1 and adopt an order declaring the results. If the order shows that 345-2 a majority of the votes cast are in favor of annexation, the 345-3 commission shall annex the territory to the authority, and the 345-4 annexation is incontestable except in the manner and within the 345-5 time for contesting elections under the general election law. A 345-6 certified copy of the order shall be recorded in the deed records 345-7 of the county in which the territory is situated. 345-8 (j) In calling the election on the proposition for the 345-9 annexation of territory, the commission may include, as a part of 345-10 the same proposition, a proposition for: 345-11 (1) the assumption of the territory's part of the 345-12 tax-supported bonds of the authority then outstanding and those 345-13 previously voted but not yet sold; and 345-14 (2) the levy of an ad valorem tax on taxable property 345-15 in the territory to be annexed along with the tax in the rest of 345-16 the authority for the payment of the bonds. 345-17 (k) After territory is added to the authority, the board may 345-18 call an election over the entire authority for the purpose of 345-19 determining whether the entire authority as enlarged shall assume 345-20 the tax-supported bonds then outstanding and those voted but not 345-21 yet sold and whether an ad valorem tax shall be levied on all 345-22 taxable property within the authority as enlarged for the payment 345-23 of the bonds, unless the proposition has been voted along with the 345-24 annexation election and becomes lawfully binding on the territory 345-25 annexed. The election shall be called and held in the same manner 345-26 as elections for the issuance of bonds as provided in this chapter. 346-1 (l) If no newspaper is published in the territory to be 346-2 annexed, the notices required by this section shall be posted at 346-3 three public places in the territory. 346-4 Sec. 264.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY. 346-5 If the territory of a city is annexed to the authority, the 346-6 governing body of the city shall appoint two directors. The term 346-7 of one appointee expires on the following May 31 and the term of 346-8 the other appointee expires on May 31 a year later. Thereafter, 346-9 the directors are appointed as provided in Section 264.004. 346-10 Sec. 264.009. WATER APPROPRIATION PERMITS. The authority 346-11 may obtain appropriation permits from the commission through 346-12 appropriate hearings as provided by Chapter 11. Thereafter the 346-13 permit, either on application of the authority or on the initiative 346-14 of the commission, may be modified by the commission, after an 346-15 appropriate hearing, to increase or decrease the amount of water 346-16 that may be appropriated, and after considering the amount of water 346-17 that may be stored by the authority to meet fluctuating demands, 346-18 either on application by the authority or by its own action, the 346-19 commission shall redetermine the maximum amount of water that the 346-20 authority may store in its reservoir. In making this 346-21 determination, the commission shall consider the needs of the 346-22 cities and others that purchase water from the authority. 346-23 Sec. 264.010. AUTHORITY TO IMPOUND AND TRANSPORT WATER; 346-24 COMMISSION APPROVAL. (a) The authority may acquire or construct, 346-25 within the boundaries of Baylor, Haskell, Knox, and Throckmorton 346-26 counties, dams and all works, plants, and other facilities 347-1 necessary or useful for the purpose of impounding, processing, and 347-2 transporting water to cities and others for municipal, domestic, 347-3 industrial, and mining purposes. 347-4 (b) The size of a dam and reservoir shall be determined by 347-5 the board, taking into consideration probable future increases in 347-6 water requirements. 347-7 (c) The size of a dam shall not be limited by the amount of 347-8 water initially authorized by the commission or a predecessor 347-9 agency of the commission to be impounded in the reservoir. 347-10 (d) A dam or other facility for impounding water may not be 347-11 constructed until the plan for the project is approved by the 347-12 commission. 347-13 Sec. 264.011. ACQUISITION AND DISPOSITION OF PROPERTY. 347-14 (a) The authority may acquire land and construct, lease, or 347-15 otherwise acquire all works, plants, and other facilities necessary 347-16 or useful for the purpose of diverting, further impounding or 347-17 storing, processing, and transporting water to cities and others 347-18 for municipal, domestic, industrial, and mining purposes. 347-19 (b) Subject to the terms of any deed of trust issued by the 347-20 authority, the authority may sell, trade, or otherwise dispose of 347-21 any real or personal property determined by the board not to be 347-22 needed for authority purposes. 347-23 (c) The authority may not develop or otherwise acquire 347-24 underground sources of water. 347-25 (d) The authority may not exercise powers of eminent domain 347-26 outside the boundaries of Baylor, Knox, Haskell, and Throckmorton 348-1 counties. 348-2 Sec. 264.012. EMINENT DOMAIN. (a) For the purpose of 348-3 carrying out any power or authority conferred by this chapter, the 348-4 authority may acquire by condemnation in the manner provided by 348-5 Chapter 21, Property Code, the fee simple title to land and other 348-6 property and easements in Baylor, Knox, Haskell, and Throckmorton 348-7 counties for the reservoir and dam and flood easements above the 348-8 probable high-water line around any such reservoir and easements 348-9 for pipelines. 348-10 (b) The authority is a municipal corporation within the 348-11 meaning of Section 21.021(c), Property Code, except that the 348-12 authority may not condemn property owned by any other political 348-13 subdivision, city, or town. 348-14 (c) As against persons, firms, and corporations, or their 348-15 receivers or trustees, who have the power of eminent domain, the 348-16 fee title may not be condemned, and the authority may condemn only 348-17 an easement. 348-18 (d) In accordance with the provisions of this section, the 348-19 amount and character of interest in land, other property, and 348-20 easements to be acquired shall be determined by the board. 348-21 (e) The authority has the power conferred on water control 348-22 and improvement districts by Section 49.221 with reference to 348-23 making surveys and attending to other business of the authority. 348-24 (f) If the authority, in the exercise of the power of 348-25 eminent domain or the power of relocation or any other power 348-26 granted under this chapter, makes necessary the relocation, 349-1 raising, rerouting, changing the grade, or altering the 349-2 construction of any highway, railroad, electric transmission line, 349-3 telephone or telegraph properties and facilities, or pipeline, all 349-4 such necessary relocation, raising, rerouting, changing of grade, 349-5 or alteration of construction shall be accomplished at the sole 349-6 expense of the authority. 349-7 Sec. 264.013. CONTRACTS; BIDS. A construction contract 349-8 requiring an expenditure of more than $10,000 may be made only 349-9 after publication of a notice to bidders once each week for two 349-10 weeks for sealed bids before the contract is awarded. The bids 349-11 shall be opened publicly. The notice is sufficient if it states 349-12 the time and place when and where the bids will be opened, states 349-13 the general nature of the work to be done or the material, 349-14 equipment, or supplies to be purchased, and states where and on 349-15 what terms copies of the plans and specifications may be obtained. 349-16 The publication must be in a newspaper published in the authority 349-17 and designated or approved by the board. 349-18 Sec. 264.014. ISSUANCE OF BONDS. (a) For the purpose of 349-19 providing a source of water supply for cities and other users for 349-20 municipal, domestic, industrial, mining, and oil flooding purposes 349-21 as authorized by this chapter and for the purpose of carrying out 349-22 any other power or authority conferred by this chapter, the 349-23 authority may issue negotiable bonds to be payable from such 349-24 revenues or taxes, or both revenues and taxes, of the authority as 349-25 are pledged by resolution of the board. Pending the issuance of 349-26 definitive bonds, the board may authorize the delivery of 350-1 negotiable interim bonds or notes that are eligible for exchange or 350-2 substitution by the definitive bonds. 350-3 (b) Bonds must be authorized by resolution of the board. 350-4 The bonds must be issued in the name of the authority, signed by 350-5 the president or vice president, and attested by the secretary and 350-6 must bear the seal of the authority. The signatures of the 350-7 president or of the secretary or of both may be printed or 350-8 lithographed on the bonds if authorized by the board, and the seal 350-9 of the authority may be impressed, printed, or lithographed on the 350-10 bonds. The bonds must mature, serially or otherwise, in not to 350-11 exceed 40 years and may be sold at a price and under terms 350-12 determined by the board to be the most advantageous reasonably 350-13 obtainable, provided that the interest cost to the authority, 350-14 including the discount, if any, calculated by use of standard bond 350-15 interest tables currently in use by insurance companies and 350-16 investment houses does not exceed six percent per year. Within the 350-17 discretion of the board, bonds may be made callable prior to 350-18 maturity at such times and prices as may be prescribed in the 350-19 resolution authorizing the bonds and may be made registrable as to 350-20 principal or as to both principal and interest. 350-21 (c) Bonds may be issued in more than one series and from 350-22 time to time as required for carrying out the purposes of this 350-23 chapter. 350-24 (d) Bonds may be secured by a pledge of all or part of the 350-25 net revenues of the authority, of the net revenues of one or more 350-26 contracts made before or after the bonds are issued, or of other 351-1 revenues or income specified by resolution of the board or in the 351-2 trust indenture. Any such pledge may reserve the right, under 351-3 conditions specified in the pledge, to issue additional bonds that 351-4 will be on a parity with or subordinate to the bonds being issued. 351-5 In this section, "net revenues" means the gross revenues and income 351-6 of the authority from all sources less the amount necessary to pay 351-7 the cost of maintaining and operating the authority and its 351-8 properties. 351-9 (e) The authority may issue bonds payable from ad valorem 351-10 taxes to be levied on all taxable property in the authority and may 351-11 issue bonds secured by and payable from both such taxes and the 351-12 revenues of the authority. If bonds are issued payable wholly or 351-13 partially from ad valorem taxes, the board shall levy a tax 351-14 sufficient to pay the bonds and the interest on the bonds as the 351-15 bonds and interest become due, but the rate of the tax for any year 351-16 may be set after giving consideration to the money received from 351-17 the pledged revenues that may be available for payment of principal 351-18 and interest to the extent and in the manner permitted by the 351-19 resolution authorizing the issuance of the bonds. 351-20 (f) If bonds payable wholly from revenues are issued, the 351-21 board shall set, and from time to time revise, rates of 351-22 compensation for water sold and services rendered by the authority 351-23 that will be sufficient to pay the expense of operating and 351-24 maintaining the facilities of the authority and to pay bonds as 351-25 they mature and the interest as it accrues and to maintain the 351-26 reserve and other funds as provided in the resolution authorizing 352-1 the bonds. If bonds payable partially from revenues are issued, 352-2 the board shall set, and from time to time revise, rates of 352-3 compensation for water sold and services rendered by the authority 352-4 that will be sufficient to assure compliance with the resolution 352-5 authorizing the bonds. 352-6 (g) The authority may set aside from the proceeds of the 352-7 sale of the bonds an amount for the payment of interest expected to 352-8 accrue during construction and for a reserve interest and sinking 352-9 fund, and such provision may be made in the resolution authorizing 352-10 the bonds. Proceeds from the sale of the bonds may also be used 352-11 for the payment of all expenses necessarily incurred in 352-12 accomplishing the purposes for which the authority is created, 352-13 including the expenses of issuing and selling the bonds. The 352-14 proceeds from the sale of the bonds may be temporarily invested in 352-15 direct obligations of the United States government maturing not 352-16 more than one year from the date of investment. 352-17 (h) In the event of a default or a threatened default in the 352-18 payment of principal of or interest on bonds payable wholly or 352-19 partially from revenues of the authority, any court of competent 352-20 jurisdiction may, on petition of the holders of outstanding bonds, 352-21 appoint a receiver with authority to collect and receive all income 352-22 of the authority except taxes, employ and discharge agents and 352-23 employees of the authority, take charge of the authority's funds on 352-24 hand (except funds received from taxes, unless commingled), and 352-25 manage the proprietary affairs of the authority without consent or 352-26 hindrance by the board. The receiver may also be authorized to 353-1 sell or make contracts for the sale of water or renew such 353-2 contracts with the approval of the court appointing the receiver. 353-3 The court may vest the receiver with other powers and duties the 353-4 court finds necessary for the protection of the holders of the 353-5 bonds. The resolution authorizing the issuance of the bonds or the 353-6 trust indenture securing them may limit or qualify the rights of 353-7 less than all of the outstanding bonds payable from the same source 353-8 to institute or prosecute any litigation affecting the authority's 353-9 property or income. 353-10 Sec. 264.015. REFUNDING BONDS. (a) The authority may issue 353-11 refunding bonds for the purpose of refunding any outstanding bonds 353-12 authorized by this chapter and interest on the bonds. Refunding 353-13 bonds may be issued to refund more than one series of outstanding 353-14 bonds and combine the pledges for the outstanding bonds for the 353-15 security of the refunding bonds, and refunding bonds may be secured 353-16 by other or additional revenues and mortgage liens. 353-17 (b) The provisions of this chapter with reference to the 353-18 issuance by the authority of other bonds, their security, their 353-19 approval by the attorney general, and the remedies of the holders 353-20 shall be applicable to refunding bonds. Refunding bonds shall be 353-21 registered by the comptroller on surrender and cancellation of the 353-22 bonds to be refunded, but in lieu of the process, the resolution 353-23 authorizing the issuance of the refunding bonds may provide that 353-24 the refunding bonds shall be sold and the proceeds of the sale 353-25 deposited in the bank where the original bonds are payable, in 353-26 which case the refunding bonds may be issued in an amount 354-1 sufficient to pay the principal of and the interest on the original 354-2 bonds to their option date or maturity date, and the comptroller 354-3 shall register the refunding bonds without concurrent surrender and 354-4 cancellation of the original bonds. 354-5 Sec. 264.016. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE 354-6 LIEN. (a) Bonds, including refunding bonds, authorized by this 354-7 chapter that are not payable wholly from ad valorem taxes may be 354-8 additionally secured by a trust indenture under which the trustee 354-9 may be a bank with trust powers located either within or outside 354-10 the state. Such bonds may, within the discretion of the board, be 354-11 additionally secured by a deed of trust or mortgage lien on 354-12 physical properties of the authority and all franchises, easements, 354-13 water rights and appropriation permits, leases and contracts, and 354-14 rights appurtenant to the properties, vesting in the trustee power 354-15 to sell the properties for payment of the indebtedness, power to 354-16 operate the properties, and all other powers and authority for the 354-17 further security of the bonds. 354-18 (b) The trust indenture, regardless of the existence of a 354-19 deed of trust or mortgage lien on the properties, may contain any 354-20 provisions prescribed by the board for the security of the bonds 354-21 and the preservation of the trust estate, may make provision for 354-22 amendment or modification thereof and the issuance of bonds to 354-23 replace lost or mutilated bonds, may condition the right to expend 354-24 authority funds or sell authority property upon approval of a 354-25 registered professional engineer selected as provided in the trust 354-26 indenture, and may make provision for the investment of funds of 355-1 the authority. A purchaser under a sale under a deed of trust 355-2 lien, where one is given, shall be the absolute owner of the 355-3 properties, facilities, and rights purchased and shall have the 355-4 right to maintain and operate the properties, facilities, and 355-5 rights. 355-6 Sec. 264.017. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION. 355-7 (a) Bonds payable wholly or partially from ad valorem taxes, 355-8 except refunding bonds, may not be issued unless authorized by an 355-9 election held after January 1, 1969, at which only the qualified 355-10 voters who reside in the authority may vote and a majority of the 355-11 votes cast in each city contained in the authority are in favor of 355-12 the issuance of the bonds. If a majority of the votes cast in any 355-13 city contained in the authority are against the issuance of the 355-14 bonds, the board may adopt a resolution detaching the territory of 355-15 that city from the authority if the board finds that it is to the 355-16 best interest of the authority to issue bonds payable wholly or 355-17 partially from taxes, but no territory may be detached from the 355-18 authority while any bonds that are payable from revenues or taxes 355-19 or both are outstanding. Bonds not payable wholly or partially 355-20 from ad valorem taxes may be issued without an election. 355-21 (b) An election for the authorization of bonds may be called 355-22 by the board without a petition. The resolution calling the 355-23 election must specify the time and places of holding the election, 355-24 the purpose for which the bonds are to be issued, the maximum 355-25 amount of the bonds, the maximum maturity of the bonds, the form of 355-26 the ballot, and the presiding judge for each voting place. The 356-1 presiding judge serving at each voting place shall appoint one 356-2 assistant judge and at least two clerks to assist in holding the 356-3 election. Notice of the election shall be given by publishing a 356-4 substantial copy of the notice in a newspaper published in each 356-5 city contained in the authority for two consecutive weeks. The 356-6 first publication must be at least 21 days before the date of the 356-7 election. In a city in which no newspaper is published, notice 356-8 shall be given by posting a copy of the resolution in three public 356-9 places. 356-10 (c) The returns of the election shall be made to and 356-11 canvassed by the board. 356-12 (d) Elections held under this section shall be governed by 356-13 the Election Code except as otherwise provided by this chapter. 356-14 Sec. 264.018. BOND APPROVAL AND REGISTRATION. After bonds, 356-15 including refunding bonds, are authorized by the authority, the 356-16 bonds and the record relating to their issuance shall be submitted 356-17 to the attorney general for examination as to the validity of the 356-18 bonds. If the bonds recite that they are secured by a pledge of 356-19 the proceeds of a contract previously made between the authority 356-20 and a city or other governmental agency, authority, or district, a 356-21 copy of the contract and the proceedings of the city or other 356-22 governmental agency, authority, or district authorizing the 356-23 contract shall also be submitted to the attorney general. If the 356-24 bonds have been authorized and if such contract has been made in 356-25 accordance with the constitution and laws of the state, the 356-26 attorney general shall approve the bonds and the contract, and the 357-1 bonds then shall be registered by the comptroller. After this 357-2 approval, the bonds and the contract, if any, are valid and binding 357-3 and are incontestable for any cause. 357-4 Sec. 264.019. CONTRACTS WITH CITIES AND OTHERS. The 357-5 authority may enter into contracts with cities and others for 357-6 supplying water to them. The authority may also contract with a 357-7 city for the rental or leasing of, or for the operation of, the 357-8 water production, water supply, and water filtration or 357-9 purification and water supply facilities of the city for such 357-10 consideration as the authority and the city may agree. The 357-11 contract may be on such terms and for such time as the parties may 357-12 agree, and the contract may provide that it shall continue in 357-13 effect until bonds specified in the contract and refunding bonds 357-14 issued in lieu of such bonds are paid. 357-15 Sec. 264.020. AUTHORITY DEPOSITORY. (a) The board shall 357-16 designate one or more banks within the authority to serve as 357-17 depository for the funds of the authority. All funds of the 357-18 authority shall be deposited in the depository bank or banks, 357-19 except that funds pledged to pay bonds may be deposited with the 357-20 trustee bank named in the trust agreement and except that funds 357-21 shall be remitted to the bank of payment for the payment of the 357-22 principal of and interest on bonds. To the extent that funds in 357-23 the depository banks and the trustee bank are not insured by the 357-24 Federal Deposit Insurance Corporation, the funds shall be secured 357-25 in the manner provided by law for the security of county funds. 357-26 (b) Before designating a depository bank or banks, the board 358-1 shall issue a notice stating the time and place when and where the 358-2 board will meet for such purpose and inviting the banks in the 358-3 authority to submit applications to be designated depositories. 358-4 The notice must be published one time in a newspaper or newspapers 358-5 published in the authority and specified by the board. 358-6 (c) At the time stated in the notice, the board shall 358-7 consider the applications and the management and condition of the 358-8 banks filing them and shall designate as depositories the bank or 358-9 banks that offer the most favorable terms and conditions for the 358-10 handling of the funds of the authority and that the board finds 358-11 have proper management and are in condition to warrant the handling 358-12 of authority funds. Membership on the board by an officer or 358-13 director of a bank shall not disqualify that bank from being 358-14 designated as a depository. 358-15 (d) If no applications are received by the time stated in 358-16 the notice, the board shall designate a bank or banks within or 358-17 outside the authority on such terms and conditions as the board 358-18 determines advantageous to the authority. 358-19 (e) The term of service for depositories shall be prescribed 358-20 by the board. 358-21 Sec. 264.021. WATER APPROPRIATION PERMITS; ACQUISITION OF 358-22 STORAGE CAPACITY AND WATER. The authority may acquire water 358-23 appropriation permits from owners of permits. The authority may 358-24 lease or acquire rights in and to storage and storage capacity in 358-25 any reservoir constructed or to be constructed by any person, firm, 358-26 corporation, or public agency or from the United States government 359-1 or any of its agencies. The authority may also purchase or make 359-2 contracts for the purchase of water or a water supply from any 359-3 person, firm, corporation, or public agency or from the United 359-4 States government or any of its agencies. 359-5 Sec. 264.022. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 359-6 DEPOSITS. All bonds of the authority are legal and authorized 359-7 investments for banks, savings banks, trust companies, building and 359-8 loan associations, savings and loan associations, insurance 359-9 companies, fiduciaries, trustees, and guardians and for the sinking 359-10 funds of cities, towns, villages, counties, school districts, or 359-11 other political corporations or subdivisions of the state. The 359-12 bonds are eligible to secure the deposit of all public funds of the 359-13 state and all public funds of cities, towns, villages, counties, 359-14 school districts, or other political corporations or subdivisions 359-15 of the state, and the bonds are lawful and sufficient security for 359-16 the deposits to the extent of their value when accompanied by all 359-17 unmatured coupons. 359-18 Sec. 264.023. BONDS EXEMPT FROM TAXATION. The 359-19 accomplishment of the purposes stated in this chapter is for the 359-20 benefit of the people of this state and for the improvement of 359-21 their properties and industries, and the authority, in carrying out 359-22 the purposes of this chapter will be performing an essential public 359-23 function under Section 59, Article XVI, Texas Constitution. The 359-24 authority shall not be required to pay any tax or assessment on the 359-25 project or any part of the project, and the bonds issued under this 359-26 chapter and the transfer of and income from the bonds, including 360-1 profits made on the sale of the bonds, shall at all times be free 360-2 from taxation within the state. 360-3 Sec. 264.024. TAXATION. (a) The tax rolls of the cities 360-4 situated within the authority as created and within annexed 360-5 territory shall constitute the tax rolls of the authority until 360-6 assessments and tax rolls are made by the authority. 360-7 (b) Before the sale and delivery of authority bonds that are 360-8 payable wholly or partially from ad valorem taxes, the board shall 360-9 appoint a tax assessor and collector and a board of equalization 360-10 and shall cause taxes to be assessed, valuations to be equalized, 360-11 and tax rolls to be prepared. General laws applicable to water 360-12 control and improvement districts with reference to tax assessors 360-13 and collectors, boards of equalization, tax rolls, and the levy and 360-14 collection of taxes and delinquent taxes shall be applicable to the 360-15 authority, except that the board of equalization, to be appointed 360-16 each year by the board, shall consist of one member residing in 360-17 each city then contained in the authority. 360-18 Sec. 264.025. ADOPTION OF RULES OR REGULATIONS; PENALTIES; 360-19 ENFORCEMENT. (a) The board may adopt and promulgate all 360-20 reasonable rules or regulations to secure, maintain, and preserve 360-21 the sanitary condition of all water in and to flow into any 360-22 reservoir owned by the authority, to prevent the waste or 360-23 unauthorized use of water, and to regulate residence, hunting, 360-24 fishing, boating, and camping and all recreational and business 360-25 privileges along or around any reservoir or any body of land or 360-26 easement owned by the authority. 361-1 (b) The authority may prescribe a reasonable penalty for the 361-2 breach of a rule or regulation of the authority, not to exceed a 361-3 fine of $200 or imprisonment for 30 days, or both the fine and 361-4 imprisonment. The penalty shall be in addition to any other 361-5 penalties provided by the laws of the state and may be enforced by 361-6 complaints filed in the appropriate court of jurisdiction; 361-7 provided, however, that no rule or regulation that provides a 361-8 penalty for a violation of the rule or regulation shall be in 361-9 effect, as to enforcement of the penalty, until five days after the 361-10 authority has caused a substantive statement of the rule or 361-11 regulation and the penalty for the violation to be published once a 361-12 week for two consecutive weeks in the county in which the reservoir 361-13 is situated or in any county in which it is partly situated. The 361-14 substantive statement to be published must be as condensed as is 361-15 possible to afford sufficient notice as to the act prohibited by 361-16 the rule or regulation. A single notice may embrace any number of 361-17 rules or regulations. The notice must provide the information that 361-18 breach of the rule or regulation will subject the violator to the 361-19 imposition of a penalty. The notice must also state that the full 361-20 text of the rule or regulation is on file in the principal office 361-21 of the authority, where it may be read by any interested person. 361-22 Five days after the second publication of the required notice, the 361-23 advertised rule or regulation shall be in effect and ignorance of 361-24 the rule or regulation is not a defense to prosecution for the 361-25 enforcement of a penalty. After the required publication, the 361-26 rules and regulations authorized by this section shall judicially 362-1 be known to the courts and shall be considered similar in nature to 362-2 a valid penal ordinance of a city of the state. 362-3 (c) A duly constituted peace officer may make arrests when 362-4 necessary to prevent or stop the commission of any offense against 362-5 the rules or regulations of the authority, or against the laws of 362-6 the state, when the offense or threatened offense occurs on any 362-7 land, water, or easement owned or controlled by the authority or 362-8 may make an arrest at any place in the case of an offense involving 362-9 injury or detriment to any property owned or controlled by the 362-10 authority. 362-11 Sec. 264.026. PARKS AND RECREATION. The authority may 362-12 establish or otherwise provide for public parks and recreation 362-13 facilities and may acquire land for those purposes. 362-14 Sec. 264.027. EFFECT ON PRIORITY OF WATER USE. Nothing in 362-15 this chapter shall be interpreted as amending or repealing Section 362-16 11.024, which provides for priorities of the use of water. 362-17 CHAPTER 265. NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY 362-18 Sec. 265.001. CREATION. (a) A regional water authority to 362-19 be known as the "North Harris County Regional Water Authority" is 362-20 created. The authority is a governmental agency and a body politic 362-21 and corporate. 362-22 (b) The authority is created under and is essential to 362-23 accomplish the purposes of Section 59, Article XVI, Texas 362-24 Constitution. 362-25 Sec. 265.002. DEFINITIONS. In this chapter: 362-26 (1) "Agricultural crop" means food or fiber 363-1 commodities grown for resale or commercial purposes that provide 363-2 food, clothing, or animal feed. 363-3 (2) "Authority" means the North Harris County Regional 363-4 Water Authority. 363-5 (3) "Board" means the board of directors of the 363-6 authority. 363-7 (4) "Director" means a member of the board. 363-8 (5) "Local government" means a municipality, county, 363-9 special district, or other political subdivision of the state or a 363-10 combination of two or more of those entities. 363-11 (6) "Person" has the meaning assigned by Section 363-12 311.005, Government Code. 363-13 (7) "Subsidence" means the lowering in elevation of 363-14 the surface of land by the withdrawal of groundwater. 363-15 (8) "Subsidence district" means the Harris-Galveston 363-16 Coastal Subsidence District. 363-17 (9) "System" means a network of pipelines, conduits, 363-18 canals, pumping stations, force mains, treatment plants, and any 363-19 other construction, device, or related appurtenance used to treat 363-20 or transport water. 363-21 (10) "Water" includes: 363-22 (A) groundwater, percolating or otherwise; 363-23 (B) any surface water, natural or artificial, 363-24 navigable or nonnavigable; and 363-25 (C) industrial and municipal wastewater. 363-26 Sec. 265.003. BOUNDARIES. (a) Except as provided by this 364-1 section, the authority includes the territory that is contained in 364-2 the following area, regardless of whether the territory contains 364-3 noncontiguous parcels of land or whether the territory is located 364-4 within the boundaries of any other governmental entity or political 364-5 subdivision of the state, but only if also contained in one or more 364-6 of the state representative districts described by this section: 364-7 BEGINNING at the intersection of the Harris and Waller County 364-8 line with the north right-of-way line of U.S. Highway 290 (current 364-9 alignment); 364-10 THENCE northwest along the Harris and Waller County line to 364-11 the intersection with Spring Creek; 364-12 THENCE continuing southeasterly along said Harris and Waller 364-13 County line, with the meanders of Spring Creek to the intersection 364-14 of the Waller and Montgomery County line; 364-15 THENCE southeasterly along the Harris and Montgomery County 364-16 line continuing with the meanders of said Spring Creek; to the 364-17 intersection with the City of Houston, corporate limits; 364-18 THENCE along said City of Houston corporate limits, the 364-19 following: south approximately one half mile; east approximately 364-20 one half mile to the City of Humble corporate limits; north along 364-21 said City of Humble corporate limits approximately one half mile to 364-22 aforementioned Spring Creek; east along Spring Creek to its 364-23 confluence with the San Jacinto River to the intersection of U.S. 364-24 Highway 59; easterly and southerly along the take line for Lake 364-25 Houston to the intersection with the southeasterly right-of-way of 364-26 the Union Pacific Railroad; southwesterly along said Union Pacific 365-1 Railroad for approximately two miles; south to the north end of 365-2 Duessen Parkway; southeast along the east side of Duessen Parkway 365-3 and along the north side of the access road to the intersection 365-4 with North Lake Houston Parkway; 365-5 THENCE departing said City of Houston corporate limits, west 365-6 along the north side of said North Lake Houston Parkway to the 365-7 beginning of Mount Houston Road, and continuing west on Mount 365-8 Houston Road to the 6900 block to the intersection of Suburban; 365-9 THENCE south along Suburban to the City of Houston corporate 365-10 limits; 365-11 THENCE along said City of Houston corporate limits, the 365-12 following: west to Hirsch Road; south along the west side of 365-13 Hirsch Road to Langely; west along the south side of Langley to the 365-14 southbound feeder road of US Highway 59; northeast along the west 365-15 side of the feeder road of US Highway 59 to Little York; west along 365-16 the south side of Little York to Bentley; north along the east side 365-17 of Bentley to Sagebrush; west along the north side of Sagebrush to 365-18 Halls Bayou; south along Halls Bayou to Little York; west along the 365-19 south side of Little York to Aldine Westfield Road; north along the 365-20 east sides of Aldine Westfield Road to its intersection with the 365-21 easterly extension of the City of Houston corporate limits; west to 365-22 the Hardy Toll Road; north along the Hardy Toll Road approximately 365-23 0.25 miles; east approximately 0.35 mile; north approximately 0.15 365-24 mile; west approximately 0.35 mile; northwest along the Hardy Toll 365-25 Road approximately 1 mile; southwesterly along an irregular path 365-26 generally west to Carby; west along Carby to Airline Drive; south 366-1 along Airline Drive to Canino; west along Canino to Sweetwater; 366-2 north along Sweetwater to West Road; west to Interstate 45/US 75; 366-3 south along Interstate 45/US 75 to south of Bluebell Road; 366-4 southerly along an irregular path generally south and west to West 366-5 Mount Houston Road; west along Mount Houston Road to a line east of 366-6 Ella Boulevard; south along a line generally parallel to Ella 366-7 Boulevard to south of West Gulf Bank; west along the south side of 366-8 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway 366-9 approximately 1.5 mile; west along an irregular path to North 366-10 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to 366-11 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south along 366-12 the FWD CRIP RR to Logview; west along Logview to Hollister; south 366-13 along Hollister to White Oak Bayou; east along White Oak Bayou to 366-14 Twisting Vine; south along Twisting Vine to West Little York; west 366-15 along West Little York to Fairbanks North Houston; south along 366-16 Fairbanks North Houston to Cole Creek; west along Cole Creek to 366-17 Hempstead Road; northwest along Hempstead Road to Brittmore Road, 366-18 also being the intersection with U.S. Highway 290, Northwest 366-19 Freeway; 366-20 THENCE departing said City of Houston corporate limits and 366-21 continuing northwest along U.S. Highway 290, Northwest Freeway, at 366-22 Spencer Road; 366-23 THENCE northwest along U.S. Highway 290, Northwest Freeway 366-24 (current alignment), to the intersection of the Harris and Waller 366-25 County line, the POINT OF BEGINNING. 366-26 (b) The authority includes only that territory described by 367-1 Subsection (a) that is also in the following state representative 367-2 districts as described by Article II, Chapter 2, Acts of the 72nd 367-3 Legislature, 3rd Called Session, 1992 (Article II, Article 195a-11, 367-4 Vernon's Texas Civil Statutes), as the districts existed on 367-5 June 18, 1999: 367-6 (1) District 127; 367-7 (2) District 126; 367-8 (3) District 130; 367-9 (4) District 135; and 367-10 (5) District 150. 367-11 (c) Notwithstanding Subsections (a) and (b), the authority 367-12 does not include any area that, on June 18, 1999, was inside the 367-13 municipal limits of the city of Houston or inside the municipal 367-14 limits of the city of Humble. 367-15 (d) On a municipality's annexation of any of the authority's 367-16 territory, the annexed territory is excluded from the authority's 367-17 territory. The authority shall continue to provide services to the 367-18 annexed territory in accordance with contracts in effect at the 367-19 time of the annexation unless a written agreement between the board 367-20 and the governing body of the municipality provides otherwise. 367-21 Sec. 265.004. EXCLUSION OF CERTAIN TERRITORY. (a) A 367-22 district organized under Section 52, Article III, or Section 59, 367-23 Article XVI, Texas Constitution, that is located in the portion of 367-24 the territory described by Section 265.003(a) that is south of 367-25 Beltway 8 or east of U.S. Highway 59 may petition for exclusion of 367-26 its territory from the authority's territory. Before the 61st day 368-1 after the date the authority receives the petition, the board 368-2 shall: 368-3 (1) grant the petition and order the territory 368-4 excluded if the petition: 368-5 (A) includes an accurate legal description of 368-6 the boundaries of the territory to be excluded; and 368-7 (B) is filed with the authority before March 1, 368-8 2001; and 368-9 (2) if the board grants the petition, file for 368-10 recording in the office of the county clerk of Harris County a copy 368-11 of the order and a description of the authority's boundaries as 368-12 they exist after the exclusion of the territory. 368-13 (b) The order excluding the territory is effective 368-14 immediately after the order and description are recorded. 368-15 Sec. 265.005. APPLICABILITY OF OTHER LAW. (a) Except as 368-16 provided by Subsection (b), this chapter prevails over any 368-17 provision of general law that is inconsistent with this chapter. 368-18 (b) This chapter does not prevail over or preempt a 368-19 provision of Chapter 36 or 151 that is being implemented by the 368-20 subsidence district. 368-21 Sec. 265.006. FINDING OF BENEFIT. All the land and other 368-22 property included within the boundaries of the authority will 368-23 benefit from the works and projects that are to be accomplished by 368-24 the authority under powers conveyed by this chapter. The authority 368-25 is created to serve a public use and benefit. 368-26 Sec. 265.007. BOARD OF DIRECTORS. (a) The authority is 369-1 governed by a board of five directors. 369-2 (b) The board shall appoint a person to fill a vacancy in 369-3 the office of director until the next election of directors. If 369-4 the position is not scheduled to be filled at the election, the 369-5 person elected to fill the position serves only for the remainder 369-6 of the unexpired term. 369-7 (c) To be eligible to serve as director, a person must be a 369-8 qualified voter in the voting district from which the person is 369-9 elected or appointed. 369-10 Sec. 265.008. METHOD OF ELECTION OF DIRECTORS. (a) One 369-11 director shall be elected from each of the five single-member 369-12 voting districts by the qualified voters of the voting district. 369-13 (b) A person shall indicate on the person's application for 369-14 a place on the ballot the voting district that the person seeks to 369-15 represent. 369-16 (c) In the manner described by Section 49.103(d), the board 369-17 shall redraw the single-member voting districts as soon as 369-18 practicable after: 369-19 (1) each federal census; and 369-20 (2) any change in the boundaries of the authority. 369-21 (d) At the first election after each time the voting 369-22 districts are redrawn: 369-23 (1) five new directors shall be elected to represent 369-24 the single-member voting districts; and 369-25 (2) the directors elected shall draw lots to determine 369-26 their terms so that: 370-1 (A) two directors serve two-year terms; and 370-2 (B) three directors serve four-year terms. 370-3 (e) Subchapter C, Chapter 146, Election Code, applies to the 370-4 consideration of votes for a write-in candidate for director as if 370-5 the authority were a municipality. 370-6 Sec. 265.009. SERVICE OF DIRECTORS. (a) The terms of the 370-7 initial permanent directors are determined by lot, with two 370-8 directors serving two-year terms and three directors serving 370-9 four-year terms. 370-10 (b) The initial permanent directors serve until permanent 370-11 directors are elected under Section 265.010. 370-12 (c) Permanent directors serve staggered four-year terms. 370-13 (d) A director serves until the director's successor has 370-14 qualified. 370-15 Sec. 265.010. ELECTION DATES. On the first uniform election 370-16 date of the calendar year in each even-numbered year, the 370-17 appropriate number of directors shall be elected to the board. 370-18 Sec. 265.011. MEETINGS AND ACTIONS OF BOARD. The board 370-19 shall meet at least four times each year and may meet at any other 370-20 time the board considers appropriate. 370-21 Sec. 265.012. GENERAL MANAGER. (a) The board shall employ 370-22 a general manager as the chief administrative officer of the 370-23 authority. The board may delegate to the general manager full 370-24 authority to manage and operate the affairs of the authority 370-25 subject only to the orders of the board. 370-26 (b) The duties of the general manager include: 371-1 (1) the administration of the orders of the board; 371-2 (2) coordination with state, federal, and local 371-3 agencies; 371-4 (3) the oversight of development of authority plans 371-5 and programs; and 371-6 (4) other duties assigned by the board. 371-7 (c) The board shall determine the terms of office and 371-8 employment of and the compensation to be paid to the general 371-9 manager. The general manager may be discharged by majority vote of 371-10 the board. 371-11 Sec. 265.013. EMPLOYEES; BONDS. (a) The general manager of 371-12 the authority shall employ all persons necessary for the proper 371-13 handling of the business and operations of the authority and may 371-14 employ attorneys, bookkeepers, engineers, and other expert and 371-15 specialized personnel the board considers necessary. The general 371-16 manager shall determine compensation to be paid by the authority. 371-17 (b) The general manager may discharge employees of the 371-18 authority. 371-19 (c) The general manager of the authority and each employee 371-20 or contractor of the authority who is charged with the collection, 371-21 custody, or payment of any money of the authority shall execute a 371-22 fidelity bond in an amount determined by the board and in a form 371-23 and with a surety approved by the board. The authority shall pay 371-24 for the bond. 371-25 Sec. 265.014. GENERAL POWERS AND DUTIES. (a) The authority 371-26 has all of the rights, powers, privileges, authority, functions, 372-1 and duties necessary and convenient to accomplish the purposes of 372-2 this chapter, including those provided by Chapter 49. 372-3 (b) The authority may: 372-4 (1) provide for the conservation, preservation, 372-5 protection, recharge, and prevention of waste of groundwater, and 372-6 for the reduction of groundwater withdrawals, in a manner 372-7 consistent with the purposes of Section 59, Article XVI, Texas 372-8 Constitution; 372-9 (2) for the purposes of reducing groundwater 372-10 withdrawals and subsidence, acquire or develop surface water and 372-11 groundwater supplies from sources inside or outside the boundaries 372-12 of the authority and may conserve, store, transport, treat, purify, 372-13 distribute, sell, and deliver water to persons, corporations, 372-14 municipal corporations, political subdivisions of the state, and 372-15 others, inside and outside the boundaries of the authority; 372-16 (3) enter into contracts with persons, including 372-17 political subdivisions of the state, on terms and conditions the 372-18 board considers desirable, fair, and advantageous for the 372-19 performance of the authority's rights, powers, and authority under 372-20 this chapter; 372-21 (4) coordinate water services provided inside, 372-22 outside, or into the authority; and 372-23 (5) administer and enforce the provisions of this 372-24 chapter. 372-25 (c) The authority's rights, powers, privileges, authority, 372-26 functions, and duties are subject to the continuing right of 373-1 supervision of the state, to be exercised by and through the 373-2 commission. 373-3 (d) The authority shall exercise its rights, powers, 373-4 privileges, and authority in a manner that will promote 373-5 regionalization of water treatment and distribution. 373-6 Sec. 265.015. AUTHORITY RULES. (a) The authority shall 373-7 adopt and enforce rules reasonably required to implement this 373-8 chapter, including rules governing procedures before the board. 373-9 (b) The board shall compile its rules in a book and make 373-10 them available for use and inspection at the authority's principal 373-11 office. 373-12 Sec. 265.016. FEES AND CHARGES. (a) The authority may 373-13 establish fees and charges as necessary to enable the authority to 373-14 fulfill the authority's regulatory obligations as provided by this 373-15 chapter. 373-16 (b) The authority may charge against the owner of a well 373-17 located in the authority's boundaries a fee on the amount of water 373-18 pumped from the well. The board shall set the rate of a fee under 373-19 this subsection only after a special meeting on the fee. The board 373-20 by rule may exempt classes of wells from the fee under this 373-21 subsection. The board may not apply the fee to a well that: 373-22 (1) has a casing diameter of less than five inches and 373-23 serves a single-family dwelling; 373-24 (2) is regulated under Chapter 27; 373-25 (3) is used for irrigation of agricultural crops; 373-26 (4) produces 10 million gallons or less annually; or 374-1 (5) is used solely for electric generation. 374-2 (c) Fees set by the board must be sufficient to: 374-3 (1) achieve water conservation, prevent waste of 374-4 water, serve as a disincentive to pumping groundwater, and 374-5 accomplish the purposes of this chapter, including making available 374-6 alternative water supplies; and 374-7 (2) enable the authority to meet operation and 374-8 maintenance expenses and pay the principal of and interest on debt 374-9 issued in connection with the exercise of the authority's general 374-10 powers and duties. 374-11 (d) The temporary board may set fees to pay for the initial 374-12 operation of the authority and the election of the initial 374-13 permanent board until the permanent board has been elected. 374-14 Sec. 265.017. CIVIL PENALTY; INJUNCTION. (a) A person who 374-15 violates a rule or order of the authority is subject to a civil 374-16 penalty of not less than $50 and not more than $5,000 for each 374-17 violation or each day of a continuing violation. 374-18 (b) The authority may bring an action to recover the penalty 374-19 in a district court in the county where the violation occurred. 374-20 The penalty shall be paid to the authority. 374-21 (c) The authority may bring an action for injunctive relief 374-22 in a district court in the county where a violation of an authority 374-23 rule or order occurs or is threatened to occur. The court may 374-24 grant to the authority, without bond or other undertaking, a 374-25 prohibitory or mandatory injunction that the facts warrant, 374-26 including a temporary restraining order, temporary injunction, or 375-1 permanent injunction. 375-2 (d) The authority may bring an action for a civil penalty 375-3 and injunctive relief in the same proceeding. 375-4 Sec. 265.018. WATER SUPPLY PLANS. The authority by rule 375-5 shall, as needed but not less frequently than every five years, 375-6 develop, prepare, revise, and adopt comprehensive water supply and 375-7 drought contingency plans for various areas of the authority. The 375-8 plans must: 375-9 (1) be consistent with regional planning; and 375-10 (2) include 10-year, 20-year, and 50-year projections 375-11 of water needs within the authority. 375-12 Sec. 265.019. ACQUISITION, CONSTRUCTION, AND OPERATION OF 375-13 SYSTEMS. (a) The authority may: 375-14 (1) acquire and provide by purchase, gift, or lease a 375-15 water treatment or water supply system inside or outside the 375-16 authority's boundaries; 375-17 (2) design, finance, or construct a water treatment or 375-18 water supply system and provide water services inside or outside 375-19 the authority's boundaries; 375-20 (3) operate, lease, or sell a water treatment or water 375-21 supply system the authority constructs or acquires; and 375-22 (4) contract with any person to operate or maintain a 375-23 water treatment or water supply system the person owns. 375-24 (b) The authority shall give persons outside the authority's 375-25 boundaries, including the City of Houston, the option to contract 375-26 for available excess capacity of the authority's water treatment or 376-1 water supply system or, before construction of a water treatment or 376-2 water supply system begins, for additional capacity of the system. 376-3 The authority must offer a contract that would enable the person to 376-4 pay for the excess capacity or additional capacity in accordance 376-5 with the person's pro rata share of the capital investment and 376-6 operational and maintenance costs for providing the excess capacity 376-7 or additional capacity. 376-8 Sec. 265.020. SALE OR REUSE OF WATER OR BY-PRODUCT. The 376-9 authority may store, sell, or reuse: 376-10 (1) water; or 376-11 (2) any by-product from the authority's operations. 376-12 Sec. 265.021. EMINENT DOMAIN. The authority may exercise 376-13 the power of eminent domain in the manner provided by Chapter 21, 376-14 Property Code, to acquire property of any kind to further 376-15 authorized purposes of the authority. The authority may not 376-16 exercise the power of eminent domain outside the boundaries of the 376-17 authority. 376-18 Sec. 265.022. CONTRACTS. (a) The authority may enter into 376-19 a contract with any person or legal entity regarding the 376-20 performance of any purpose or function of the authority, including 376-21 a contract to jointly construct, finance, own, or operate works, 376-22 improvements, facilities, plants, equipment, or appliances 376-23 necessary to accomplish a purpose or function of the authority. A 376-24 contract may be of unlimited duration. 376-25 (b) The authority may purchase an interest in a project used 376-26 for a purpose or function of the authority. 377-1 (c) The authority may contract for: 377-2 (1) the purchase or sale of water or water rights; 377-3 (2) the performance of activities within the powers of 377-4 the authority to promote the continuing and orderly development of 377-5 land and property in the authority through the purchase, 377-6 construction, or installation of works, improvements, facilities, 377-7 plants, equipment, or appliances so that, to the greatest extent 377-8 possible consistent with sound engineering practices and economic 377-9 feasibility, all the land and property in the authority may receive 377-10 services of the works, improvements, facilities, plants, equipment, 377-11 or appliances of the authority; or 377-12 (3) the construction, ownership, maintenance, or 377-13 operation of any works, improvements, facilities, plants, 377-14 equipment, or appliances of the authority or another person or 377-15 legal entity. 377-16 (d) The authority may purchase surplus property from the 377-17 state, the United States, or another public entity through a 377-18 negotiated contract without bids. 377-19 (e) An officer, agent, or employee of the authority who has 377-20 a financial interest in the contract of the type described by 377-21 Subsection (d) shall disclose the interest to the board before the 377-22 board votes on the acceptance of the contract. 377-23 Sec. 265.023. COOPERATION WITH AND ASSISTANCE OF OTHER 377-24 GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the 377-25 board may cooperate with and request the assistance of the Texas 377-26 Water Development Board, the commission, the United States 378-1 Geological Survey, the subsidence district, other local 378-2 governments, and other agencies of the United States and the state. 378-3 (b) The subsidence district may enter into an interlocal 378-4 contract with the authority to carry out the authority's purposes 378-5 and may carry out the governmental functions and services specified 378-6 in the interlocal contract. 378-7 (c) The board shall coordinate with the City of Houston to 378-8 develop an interregional plan for a system to distribute treated 378-9 surface water in an economical and efficient manner. 378-10 Sec. 265.024. GIFTS AND GRANTS. The authority is authorized 378-11 to accept a gift or grant from money collected by the subsidence 378-12 district under Chapter 151 to fund a water treatment or water 378-13 supply system. The authorization provided by this section is in 378-14 addition to the authorization provided by Section 49.229. 378-15 Sec. 265.025. EXPENDITURES. (a) The authority's money may 378-16 be disbursed only by check, draft, order, or other instrument. 378-17 (b) Disbursements of the authority must be signed by at 378-18 least two directors, except that the board by resolution may allow 378-19 the general manager, treasurer, or bookkeeper or another employee 378-20 of the authority to sign disbursements. 378-21 (c) The board by resolution may allow disbursements to be 378-22 transferred by federal reserve wire system to accounts in the name 378-23 of the authority. 378-24 Sec. 265.026. TAXATION. The authority may not impose an ad 378-25 valorem tax. 378-26 Sec. 265.027. REVENUE NOTES. (a) The board, without an 379-1 election, may borrow money on negotiable notes of the authority to 379-2 be paid solely from the revenue derived from any legal source, 379-3 including: 379-4 (1) tolls, charges, and fees the authority imposes; 379-5 (2) the sale of water, water or sewer services, or any 379-6 other service or product of the authority; 379-7 (3) grants or gifts; 379-8 (4) the ownership and operation of all or a designated 379-9 part of the authority's works, improvements, facilities, plants, or 379-10 equipment; and 379-11 (5) contracts between the authority and any person, 379-12 including a local government. 379-13 (b) The notes may be first or subordinate lien notes at the 379-14 board's discretion. An obligation may not be a charge on the 379-15 property of the authority. An obligation may only be a charge on 379-16 revenue pledged for the payment of the obligation. 379-17 Sec. 265.028. BONDS. (a) To carry out a power or authority 379-18 conferred by this chapter, the authority may issue bonds secured by 379-19 all or part of the revenue derived from any source, including any 379-20 source described by Section 265.027(a). 379-21 (b) In issuing or securing a bond or note of the authority, 379-22 the authority may exercise any power of an issuer under Chapter 379-23 1371, Government Code. 379-24 (c) The authority may conduct a public, private, or 379-25 negotiated sale of the bonds. 379-26 (d) The authority's bonds must: 380-1 (1) be authorized by board resolution; 380-2 (2) be issued in the authority's name; 380-3 (3) be signed by the president or vice president of 380-4 the board, which may be accomplished by facsimile signature; 380-5 (4) be attested by the secretary of the board, which 380-6 may be accomplished by facsimile signature; and 380-7 (5) bear the authority's seal or facsimile seal. 380-8 (e) An authority bond may be secured by a trust indenture 380-9 with a corporate trustee. 380-10 (f) The authority may issue bonds in more than one series as 380-11 required for carrying out the purposes of this chapter. In issuing 380-12 bonds secured by revenue of the authority, the authority may 380-13 reserve the right to issue additional bonds secured by the 380-14 authority's revenue that are on a parity with or are senior or 380-15 subordinate to the bonds issued earlier. 380-16 (g) The resolution authorizing the bonds or the trust 380-17 indenture securing the bonds may specify additional provisions that 380-18 constitute a contract between the authority and its bondholders. 380-19 The board may provide: 380-20 (1) for additional bond provisions; and 380-21 (2) for a corporate trustee or receiver to take 380-22 possession of the authority's facilities if the authority defaults. 380-23 (h) Section 49.181 does not apply to bonds or notes issued 380-24 by the authority. 380-25 Sec. 265.029. REFUNDING BONDS. The provisions of this 380-26 chapter that apply to the authority's issuance of other bonds, 381-1 their security, and the remedies of the holders apply to refunding 381-2 bonds. 381-3 Sec. 265.030. APPROVAL AND REGISTRATION OF BONDS. After the 381-4 authority authorizes bonds, the authority shall submit the bonds 381-5 and the record relating to their issuance to the attorney general 381-6 for approval. If the bonds are secured by a pledge of the proceeds 381-7 of a contract between the authority and a municipality or other 381-8 governmental agency, authority, or district, the authority shall 381-9 submit to the attorney general a copy of the contract and the 381-10 proceedings of the municipality or other governmental agency, 381-11 authority, or district authorizing the contract. If the attorney 381-12 general finds that the bonds have been authorized and each contract 381-13 has been made in accordance with the constitution and laws of the 381-14 state, the attorney general shall approve the bonds and contracts. 381-15 On approval, the bonds shall be registered by the comptroller. 381-16 Sec. 265.031. FUNDING BY OTHER DISTRICTS. (a) The 381-17 authority shall develop a procedure for cooperatively funding a 381-18 project of the authority with money from other districts inside the 381-19 authority's boundaries if the authority project fulfills a 381-20 governmental purpose of both the authority and the other districts. 381-21 (b) Not later than the 90th day before the date the 381-22 authority issues bonds, other than refunding bonds, to finance a 381-23 project, the authority shall provide written notice of the 381-24 authority's intention to issue the bonds to each district inside 381-25 the authority's boundaries that may benefit from or be affected by 381-26 the project. The notice must include the value of the bonds to be 382-1 issued, a description of the project the bonds would finance, and a 382-2 schedule of the portion of the project costs financed by the bonds 382-3 that may be allocated to each district benefited or affected. The 382-4 schedule must be prepared by means of a formula certified by the 382-5 authority's engineer. 382-6 (c) A district may enter into a contract with the authority 382-7 for the district to finance a portion of the proposed project with 382-8 the district's resources instead of using proceeds from bonds of 382-9 the authority for that purpose. The contract must be executed 382-10 before the authority issues the bonds. As provided in the 382-11 contract, the authority must: 382-12 (1) reduce the value of the bond issuance to the 382-13 degree that the district provides project funding; and 382-14 (2) credit the district for its contribution to the 382-15 project financing and adjust the allocation of revenue pledged to 382-16 the payment of the bonds so that the authority avoids using, to a 382-17 degree commensurate with the contribution, revenue from the 382-18 district to service the authority's bond debt or interest. 382-19 CHAPTER 266. NORTH TEXAS MUNICIPAL WATER DISTRICT 382-20 Sec. 266.001. CREATION. (a) A conservation and reclamation 382-21 district to be known as the "North Texas Municipal Water District" 382-22 is created. The district is a governmental agency and a body 382-23 politic and corporate. 382-24 (b) The district is created under and is essential to 382-25 accomplish the purposes of Section 59, Article XVI, Texas 382-26 Constitution. 383-1 Sec. 266.002. DEFINITIONS. In this chapter: 383-2 (1) "Basic service area" means the geographic area 383-3 contained within the corporate limits of the member cities and 383-4 areas that are being served at the time of the creation of the 383-5 district or that may later be served by the member cities' primary 383-6 water system. 383-7 (2) "Board" means the board of directors of the 383-8 district. 383-9 (3) "Customer" means users of district water other 383-10 than member cities. 383-11 (4) "Director" means a member of the board. 383-12 (5) "District" means the North Texas Municipal Water 383-13 District and any other public body that succeeds to the property 383-14 and principal rights, powers, and obligations of the North Texas 383-15 Municipal Water District. 383-16 (6) "Enlarged Lavon water" means the water that the 383-17 district holds on May 5, 1969, or secures in the future, under or 383-18 through a permit from the commission to store and divert from Lavon 383-19 Lake on the East Fork of the Trinity River, as modified. 383-20 (7) "Interim basis" means only until such time as the 383-21 district needs the water for the use and benefit of its service 383-22 area, not permanently, but only during such times as a surplus of 383-23 dependable safe yield is present in each classification of water. 383-24 (8) "Member cities" means the cities of Garland, 383-25 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville, 383-26 McKinney, Forney, Royse City, Allen, and Richardson and any other 384-1 city that may legally become a part of the district. 384-2 (9) "Original Lavon water" means the water for which 384-3 the district holds a permit from the commission to store and divert 384-4 from Lavon Lake on the East Fork of the Trinity River, as 384-5 originally constructed. 384-6 (10) "Other service area" means the geographic area in 384-7 the state that is outside the service area described by Subdivision 384-8 (14). 384-9 (11) "Other water" means any water that the district 384-10 secures under or through a permit from the commission or its 384-11 predecessor agency to store and divert, other than Lavon water or 384-12 enlarged Lavon water. 384-13 (12) "Primary right" means the superior right to 384-14 permanent water and to the quantity, quality, and price of the 384-15 water. 384-16 (13) "Prospective customer" means any person, firm, 384-17 corporation, company, partnership, association, or body corporate 384-18 or politic that evidences an interest in securing water from the 384-19 district. 384-20 (14) "Service area" means the geographic area 384-21 contained within the watershed of the East Fork of the Trinity 384-22 River, any area contained within the corporate limits of the member 384-23 cities, and the areas served by the member cities' water system. 384-24 Sec. 266.003. TERRITORY. (a) The district comprises all 384-25 the territory that was contained within the cities of Garland, 384-26 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville, 385-1 McKinney, Forney, and Royse City on March 1, 1951, and any 385-2 territory annexed after that date. A defect in the definition of 385-3 the boundaries of any of those cities or in any past or future 385-4 proceedings for the annexation of territory to any of those cities 385-5 does not affect the validity of the district or any of its powers 385-6 or duties. 385-7 (b) The legislature finds and determines that all the land 385-8 included in the district will benefit from the improvements to be 385-9 acquired and constructed by the district. 385-10 Sec. 266.004. BOARD OF DIRECTORS. (a) All powers of the 385-11 district shall be exercised by a board of directors. The directors 385-12 shall be appointed by majority vote of the governing body of each 385-13 of the member cities contained in the district. 385-14 (b) In May of each year, the governing body of each member 385-15 city in the district with a population of 5,000 or more shall 385-16 appoint one director for a two-year term beginning June 1 of that 385-17 year. 385-18 (c) In May of each even-numbered year, the governing body of 385-19 each member city in the district with a population of less than 385-20 5,000 shall appoint one director for a two-year term beginning 385-21 June 1 of that year. 385-22 (d) Each director serves for a term of office as provided by 385-23 this section and until a successor is appointed and has qualified. 385-24 (e) A director must reside in and own taxable property in 385-25 the city from which the director is appointed. A member of a 385-26 governing body of a city or an employee of a city is not eligible 386-1 to serve as a director. 386-2 (f) A director shall subscribe the constitutional oath of 386-3 office and shall give bond for the faithful performance of the 386-4 director's duties in the amount of $5,000, the cost of which shall 386-5 be paid by the district. 386-6 (g) A majority of the members of the board constitutes a 386-7 quorum. 386-8 Sec. 266.005. DIRECTOR FEES. (a) Each director is entitled 386-9 to receive a fee of $50 for attending each meeting of the board and 386-10 $20 per day for each day devoted to the business of the district 386-11 other than attending board meetings, but not more than $1,200 shall 386-12 be paid to any director in one calendar year. 386-13 (b) Each director is entitled to reimbursement for actual 386-14 expenses incurred in attending to district business if the service 386-15 and expense are expressly approved by the board. 386-16 Sec. 266.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 386-17 shall elect from among its members a president and a vice president 386-18 of the district and other officers as the board considers 386-19 necessary. 386-20 (b) The president is the chief executive officer of the 386-21 district and the presiding officer of the board and has the same 386-22 right to vote as any other director. 386-23 (c) The vice president shall perform all duties and exercise 386-24 all powers conferred by this chapter on the president when the 386-25 president is absent or fails or declines to act. 386-26 (d) The board shall appoint a secretary and a treasurer, who 387-1 may or may not be members of the board, and may combine those 387-2 offices. The treasurer shall give bond in an amount required by 387-3 the board but not less than $100,000. The bond shall be 387-4 conditioned on the treasurer faithfully accounting for all money 387-5 that comes into the treasurer's custody as treasurer of the 387-6 district. 387-7 (e) The board shall appoint all necessary engineers, 387-8 attorneys, and other employees. 387-9 (f) The board shall adopt a seal for the district. 387-10 Sec. 266.007. ANNEXATION OF TERRITORY. (a) Other territory 387-11 may be annexed to the district as provided by this section. 387-12 (b) A petition for annexation must: 387-13 (1) be signed by 50 or a majority of the qualified 387-14 voters of the territory to be annexed who own taxable property in 387-15 the territory; 387-16 (2) be filed with the board; and 387-17 (3) describe the territory to be annexed by metes and 387-18 bounds or otherwise unless the territory is the same as that 387-19 contained in a city or town, in which case it will be sufficient to 387-20 state that the territory to be annexed is that contained within the 387-21 city or town. 387-22 (c) If the board finds that the petition complies with and 387-23 is signed by the number of qualified persons required under 387-24 Subsection (b), that the annexation would be in the interest of the 387-25 territory to be annexed and the district, and that the district 387-26 will be able to supply water to the territory to be annexed, the 388-1 board shall adopt a resolution stating the conditions, if any, 388-2 under which the territory may be annexed and requesting the 388-3 commission or its successor agency to annex the territory to the 388-4 district. A certified copy of the resolution and the petition 388-5 shall be filed with the commission. 388-6 (d) The commission shall adopt a resolution declaring its 388-7 intention to call an election in the territory to be annexed for 388-8 the purpose of submitting the proposition of whether the territory 388-9 shall be annexed to the district. The commission shall set a time 388-10 and place for a hearing to be held by the commission on the 388-11 question of whether the territory to be annexed will benefit from 388-12 the improvements, works, and facilities then owned or operated or 388-13 contemplated to be owned or operated by the district. Railroad 388-14 right-of-way or transmission lines and other property of electric 388-15 and gas utilities that are not situated within the defined limits 388-16 of an incorporated city or town will not benefit from the 388-17 improvements, works, and facilities that the district is authorized 388-18 to construct. Railroad right-of-way or transmission lines and 388-19 other property of electric and gas utilities may not be annexed to 388-20 the district unless the right-of-way and transmission lines and 388-21 other property of electric and gas utilities are contained within 388-22 the limits of an incorporated city or town that has been annexed to 388-23 the district. 388-24 (e) Notice of the adoption of the resolution stating the 388-25 time and place of the hearing addressed to the citizens and owners 388-26 of property in the territory to be annexed shall be published one 389-1 time in a newspaper designated by the commission at least 10 days 389-2 before the date of the hearing. The notice shall describe the 389-3 territory in the same manner as required or permitted by the 389-4 petition. 389-5 (f) All interested persons may appear at the hearing and 389-6 offer evidence for or against the intended annexation. The hearing 389-7 may proceed in the order and under the rules prescribed by the 389-8 commission and may be recessed from time to time. If, at the 389-9 conclusion of the hearing, the commission finds that all the lands 389-10 in the territory to be annexed will benefit from the present or 389-11 contemplated improvements, works, or facilities of the district, 389-12 the commission shall adopt a resolution calling an election in the 389-13 territory to be annexed, stating the date and the place or places 389-14 for holding the election, and appointing a presiding judge for each 389-15 voting place, who shall appoint the necessary assistant judges and 389-16 clerks to assist in holding the election. 389-17 (g) Notice of the election, stating the date and places for 389-18 holding the election, the proposition to be voted on, and the 389-19 conditions under which the territory may be annexed, or making 389-20 reference to the resolution of the board for that purpose, shall be 389-21 published one time in a newspaper designated by the commission at 389-22 least 10 days before the date set for the election. 389-23 (h) Only qualified electors who reside in the territory to 389-24 be annexed are qualified to vote in the election. Returns of the 389-25 election shall be made to the commission. 389-26 (i) The commission shall canvass the returns of the election 390-1 and adopt a resolution declaring the results. If the resolution 390-2 shows that a majority of the votes cast are in favor of annexation, 390-3 the commission shall enter an order annexing the territory to the 390-4 district, and the annexation shall be incontestable except in the 390-5 manner and within the time for contesting elections under the 390-6 Election Code. A certified copy of the order shall be recorded in 390-7 the deed records of the county in which the territory is situated. 390-8 (j) In calling the election on the proposition for the 390-9 annexation of territory, the commission may include as a part of 390-10 the same proposition a proposition for the assumption of that 390-11 territory's part of the tax-supported bonds of the district then 390-12 outstanding and those voted but not yet sold and for the levy of an 390-13 ad valorem tax on taxable property in the territory to be annexed 390-14 along with the tax in the rest of the district for the payment of 390-15 the bonds. 390-16 (k) After territory is added to the district, the board may 390-17 call an election over the entire district for the purpose of 390-18 determining whether the entire district as enlarged shall assume 390-19 the tax-supported bonds then outstanding and those voted but not 390-20 yet sold and whether an ad valorem tax shall be levied on all 390-21 taxable property within the district as enlarged for the payment of 390-22 the bonds, unless the proposition is voted along with the 390-23 annexation election and becomes lawfully binding on the territory 390-24 annexed. The election shall be called and held in the same manner 390-25 as elections for the issuance of bonds as provided by this chapter. 390-26 (l) If no newspaper is published in the territory to be 391-1 annexed, notices required by this section shall be posted in three 391-2 public places in the territory. 391-3 Sec. 266.008. APPOINTMENT OF DIRECTORS IN ANNEXED 391-4 TERRITORIES. (a) If the territory of a city with a population of 391-5 5,000 or more is annexed to the district, the governing body of the 391-6 city shall appoint one director for a term ending the following May 391-7 31 and one director for a term ending one year after the following 391-8 May 31. In May of each year, the governing body of the city shall 391-9 appoint one director for a two-year term as provided by this 391-10 chapter for cities originally included in the district. 391-11 (b) If a city whose territory is annexed to the district has 391-12 a population of less than 5,000, the governing body of the city 391-13 shall appoint one director whose term shall expire the following 391-14 May 31 and in May of each second year thereafter shall appoint one 391-15 director for a two-year term. If the city later attains a 391-16 population of 5,000 or more, it shall be entitled to two directors 391-17 to be appointed as provided by this section. 391-18 Sec. 266.009. USE OF CERTAIN WATERS AND FACILITIES. 391-19 (a) The district may acquire any and all rights in and to storage 391-20 and storage capacity in Lavon Lake as constructed at the time of 391-21 the creation of the district or later modified, and in any other 391-22 reservoir or from any other source, and the right to take water 391-23 from the reservoirs or other sources after obtaining a permit from 391-24 the commission, by complying with the provisions of this code that 391-25 are applicable to such rights and pursuant to any contract or 391-26 contracts the district may make with the United States government, 392-1 any of its agencies, or any other agency in reference to those 392-2 rights, and the district may develop or otherwise acquire, with the 392-3 consent of owners of surface, underground sources of water. 392-4 (b) The district may construct or otherwise acquire all 392-5 works, plants, and other facilities necessary or useful for the 392-6 purpose of storing, impounding, retaining, diverting, or processing 392-7 the water described by Subsection (a) and transporting it to cities 392-8 and other areas for municipal, domestic, and industrial purposes. 392-9 (c) To the extent permissible under a contract with the 392-10 United States government, any of its agencies, and any other 392-11 agency, the district may dispose of surplus water under its control 392-12 by contract with the commission or any other state or local agency 392-13 for irrigation or beneficial purposes. 392-14 (d) Any works for the diversion of water from the impounding 392-15 dams may not be constructed until the plans for the works are 392-16 approved by the commission. The district shall apply to and obtain 392-17 authority from the commission to appropriate the waters. 392-18 (e) The district may not be compelled to supply water for 392-19 use outside its service area except by order of the commission in 392-20 accordance with Section 11.041. 392-21 (f) The basic service area has the primary right to water in 392-22 each classification that the district secures under permit from the 392-23 commission. 392-24 (g) This chapter does not compel any customer or prospective 392-25 customer to secure water from the district except pursuant to 392-26 contracts voluntarily executed. 393-1 (h) This chapter does not alter any outstanding permit, 393-2 contract, or other obligation. 393-3 Sec. 266.010. EMINENT DOMAIN. (a) For the purpose of 393-4 carrying out any power or authority conferred by this chapter, the 393-5 district may acquire land and easements within and outside the 393-6 district, including land above the probable high-water line around 393-7 reservoirs, by condemnation in the manner provided by Chapter 21, 393-8 Property Code. 393-9 (b) The district is a municipal corporation within the 393-10 meaning of Section 21.021(c), Property Code. 393-11 (c) The amount and character of interest in land and 393-12 easements acquired under this section shall be determined by the 393-13 board. 393-14 (d) If the district, in the exercise of the power of eminent 393-15 domain or police power or any other power granted under this 393-16 chapter makes necessary the relocation, raising, lowering, 393-17 rerouting, changing the grade, or altering the construction of any 393-18 railroad, electric transmission, telegraph or telephone lines, 393-19 properties, and facilities, or pipeline, all such relocation, 393-20 raising, lowering, rerouting, changing of grade, or alteration of 393-21 construction shall be accomplished at the sole expense of the 393-22 district. In this subsection, "sole expense" means the actual cost 393-23 of the relocation, raising, lowering, rerouting, change in grade, 393-24 or alteration of construction in providing comparable replacement 393-25 without enhancement of the facilities, after deducting from the 393-26 cost the net salvage value of the old facility. 394-1 Sec. 266.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A 394-2 construction contract requiring an expenditure of more than $25,000 394-3 shall be made only after publication of a notice to bidders once 394-4 each week for two weeks before the awarding of the contract. 394-5 (b) The notice required under this section is sufficient if 394-6 it states the time and place at which the bids will be opened, the 394-7 general nature of the work to be done or the material, equipment, 394-8 or supplies to be purchased and states where and under what terms 394-9 copies of the plans and specifications may be obtained. 394-10 (c) The publication shall be in a newspaper published in the 394-11 district and designated by the board. 394-12 Sec. 266.012. BONDS. (a) For the purpose of providing a 394-13 source of water supply for cities and other users for municipal, 394-14 domestic, and industrial purposes as authorized by this chapter and 394-15 for the purpose of carrying out any other power or authority 394-16 conferred by this chapter, the district may issue negotiable bonds 394-17 payable from the revenues or taxes, or both revenues and taxes, of 394-18 the district as pledged by resolution of the board. Pending the 394-19 issuance of definitive bonds, the board may authorize the delivery 394-20 of negotiable interim bonds or notes that are eligible for exchange 394-21 or substitution by the definitive bonds. 394-22 (b) Bonds must be authorized by resolution of the board and 394-23 shall be issued in the name of the district, signed by the 394-24 president or vice president, and attested by the secretary and 394-25 shall bear the seal of the district. 394-26 (c) Bonds must mature serially or otherwise in not to exceed 395-1 40 years and may be sold at a price and under terms determined by 395-2 the board to be the most advantageous reasonably obtainable, 395-3 provided that the interest cost to the district, calculated by the 395-4 use of standard bond interest tables currently in use by insurance 395-5 companies and investment houses, does not exceed six percent per 395-6 year. Within the discretion of the board, bonds may be made 395-7 callable prior to maturity at times and prices prescribed in the 395-8 resolution authorizing the bonds and may be made registrable as to 395-9 principal or as to both principal and interest. 395-10 (d) Bonds may be issued in more than one series and from 395-11 time to time as required for carrying out the purposes of this 395-12 chapter. 395-13 (e) Bonds may be secured by a pledge of all or part of the 395-14 net revenues of the district, of the net revenues of one or more 395-15 contracts made before or after the bonds are issued, or of other 395-16 revenues specified by resolution of the board. A pledge may 395-17 reserve the right, under conditions specified in the pledge, to 395-18 issue additional bonds that will be on a parity with or subordinate 395-19 to the bonds being issued. In this subsection, "net revenues" 395-20 means the gross revenues of the district less the amount necessary 395-21 to pay the cost of maintaining and operating the district and its 395-22 properties. 395-23 (f) For the purposes stated in Subsection (a), the district 395-24 may issue bonds payable from ad valorem taxes to be levied on all 395-25 taxable property in the district or may issue bonds secured by and 395-26 payable from both the taxes and the revenues of the district, 396-1 subject to the conditions prescribed in Sections 266.015 (a), (b), 396-2 and (c). The board shall levy a tax sufficient to pay bonds issued 396-3 payable wholly or partially from ad valorem taxes and the interest 396-4 on the bonds as the bonds and interest become due. The rate of the 396-5 tax for any year may be set after giving consideration to the money 396-6 received from the pledged revenues available for payment of 396-7 principal and interest to the extent and in the manner permitted by 396-8 the resolution authorizing the issuance of the bonds. 396-9 (g) If bonds payable wholly from revenues are issued, the 396-10 board shall set, and from time to time revise, rates of 396-11 compensation for water sold and services rendered by the district 396-12 that will be sufficient to pay the expense of operating and 396-13 maintaining the facilities of the district and to pay bonds as they 396-14 mature and the interest as it accrues and to maintain the reserve 396-15 and other funds as provided in the resolution authorizing the 396-16 bonds. If bonds payable partially from revenues are issued, the 396-17 board shall set, and from time to time revise, rates of 396-18 compensation for water sold and services rendered by the district 396-19 that will be sufficient to assure compliance with the resolution 396-20 authorizing the bonds. 396-21 (h) From the proceeds of the sale of the bonds, the district 396-22 may set aside an amount for the payment of interest expected to 396-23 accrue during construction and for a reserve interest and sinking 396-24 fund, and the set-aside provision may be made in the resolution 396-25 authorizing the bonds. Proceeds from the sale of the bonds may 396-26 also be used for the payment of all expenses necessarily incurred 397-1 in accomplishing the purposes for which the district is created, 397-2 including expenses of issuing and selling the bonds. 397-3 (i) In the event of a default or a threatened default in the 397-4 payment of principal of or interest on bonds payable wholly or 397-5 partially from revenues of the district, any court of competent 397-6 jurisdiction may, on petition of the holders of 25 percent of the 397-7 outstanding bonds of the issue in default or threatened with 397-8 default, appoint a receiver with authority to collect and receive 397-9 all income of the district except taxes, employ and discharge 397-10 agents and employees of the district, take charge of the district's 397-11 funds on hand (except funds received from taxes, unless 397-12 commingled), and manage the proprietary affairs of the district 397-13 without consent or hindrance by the directors. The receiver may 397-14 also be authorized to sell or make contracts for the sale of water 397-15 or renew the contracts with the approval of the court appointing 397-16 the receiver. The court may vest the receiver with other powers 397-17 and duties that the court finds necessary for the protection of the 397-18 holders of the bonds. 397-19 Sec. 266.013. REFUNDING BONDS. (a) The district may issue 397-20 refunding bonds for the purpose of refunding any outstanding bonds 397-21 authorized by this chapter and interest on the bonds. Refunding 397-22 bonds may be issued to refund more than one series of outstanding 397-23 bonds and may combine the pledges for the outstanding bonds for the 397-24 security of the refunding bonds, and the refunding bonds may be 397-25 secured by other or additional revenues. 397-26 (b) The provisions of this chapter regarding the issuance by 398-1 the district of other bonds, their approval by the attorney 398-2 general, and the remedies of the holders are applicable to 398-3 refunding bonds. Refunding bonds shall be registered by the 398-4 comptroller on surrender and cancellation of the bonds to be 398-5 refunded, but in lieu of that process, the resolution authorizing 398-6 the issuance of the refunding bonds may provide that the refunding 398-7 bonds shall be sold and the proceeds of the sale deposited in the 398-8 bank where the original bonds are payable, in which case the 398-9 refunding bonds may be issued in an amount sufficient to pay the 398-10 interest on the original bonds to their option date or maturity 398-11 date, and the comptroller shall register the refunding bonds 398-12 without concurrent surrender and cancellation of the original 398-13 bonds. 398-14 Sec. 266.014. TRUST INDENTURE; DEED OF TRUST. (a) Bonds, 398-15 including refunding bonds, authorized by this chapter that are not 398-16 payable wholly from ad valorem taxes may be additionally secured by 398-17 a trust indenture under which the trustee may be a bank having 398-18 trust powers situated either within or outside the state. Bonds 398-19 may, in the discretion of the board, be additionally secured by a 398-20 deed of trust lien on physical properties of the district and all 398-21 franchises, easements, and water rights and appropriation permits, 398-22 leases, and contracts and all rights appurtenant to the properties, 398-23 vesting in the trustee power to sell the properties for payment of 398-24 the indebtedness, power to operate the properties, and all other 398-25 powers and authority for the further security of the bonds. 398-26 (b) The trust indenture, regardless of the existence of a 399-1 deed of trust lien, may contain any provisions prescribed by the 399-2 board for the security of the bonds and the preservation of the 399-3 trust estate and may make provision for amendment or modification 399-4 thereof and the issuance of bonds to replace lost or mutilated 399-5 bonds. A purchaser under a sale under the deed of trust lien, 399-6 where one is given, shall be the owner of the properties, 399-7 facilities, and rights purchased and shall have the right to 399-8 maintain and operate the properties, facilities, and rights. 399-9 Sec. 266.015. ELECTION FOR TAX FUNDED BONDS. (a) Bonds 399-10 payable wholly or partially from ad valorem taxes, except refunding 399-11 bonds, shall not be issued unless authorized by an election at 399-12 which only the qualified voters who reside in the district shall be 399-13 qualified to vote and unless a majority of the votes cast is in 399-14 favor of the issuance of the bonds. 399-15 (b) Before calling an election for the issuance of bonds 399-16 secured either wholly or partially by a pledge of ad valorem taxes, 399-17 the board shall publish, in the manner prescribed by this section, 399-18 a summary of the improvements to be financed with the proceeds of 399-19 the bonds to be issued. If the district has not provided 399-20 facilities for delivering water to a city within the district and 399-21 if the summary of improvements does not include provision for 399-22 delivering water to the city, the district shall publish in the 399-23 city notice of its intention, on a date specified in the notice, to 399-24 adopt a resolution ordering an election on the issuance of bonds 399-25 wholly or partly secured by a pledge of ad valorem taxes and 399-26 containing the summary of the proposed improvements. The notice 400-1 shall be published at least once in a newspaper published in or 400-2 having general circulation in the city. The date of publication 400-3 shall be at least 14 days before the date on which the district 400-4 intends to adopt a resolution ordering the election. The district 400-5 shall also mail a copy of the notice to the mayor of the city at 400-6 least 14 days before the date designated for ordering the election. 400-7 Before the date designated for ordering the election, the governing 400-8 body of the notified city may adopt a resolution stating that the 400-9 district has not provided facilities for delivering water to the 400-10 city and does not propose to provide the necessary facilities with 400-11 the proceeds from the proposed tax-supported bonds and on a 400-12 reasonable cost basis; stating that it is in the best interests of 400-13 the people of the city that the city be eliminated from the 400-14 district for all purposes; and seeking withdrawal from the 400-15 district. If, before the date designated for ordering the 400-16 election, a certified copy of the resolution is delivered to the 400-17 district and to the commission, the district shall not proceed with 400-18 the election until the commission has acted finally on the request 400-19 for withdrawal from the district. 400-20 (c) On receipt of the certified copy of the resolution from 400-21 a city requesting withdrawal from the district the commission shall 400-22 set a date for a hearing on the request, giving written notice of 400-23 the hearing to both the city and the district. If at the hearing 400-24 the commission finds that no facilities have been provided to the 400-25 city and that none will be provided from the proceeds of the 400-26 proposed tax-supported bonds for the delivery of water to the city 401-1 on a reasonable cost basis, the commission shall enter an order 401-2 eliminating the city from the district. In lieu of a hearing the 401-3 district may file with the commission a consent to the elimination 401-4 of the territory. However, if the commission finds that facilities 401-5 are available or will be provided from the proceeds of the proposed 401-6 bonds on a reasonable cost basis, the commission shall enter an 401-7 order denying the request for withdrawal. After the commission 401-8 enters the order, the district may order an election with the city 401-9 either eliminated or retained in the boundaries of the district as 401-10 prescribed in the order. Bonds not payable wholly or partially 401-11 from ad valorem taxes may be issued without an election. 401-12 (d) An election for the issuance of bonds payable wholly or 401-13 partially from ad valorem taxes may be called by the board without 401-14 a petition. The resolution calling the election shall specify the 401-15 time and places for holding the election, the purpose for which the 401-16 bonds are to be issued, the maximum amount of the bonds, the 401-17 maximum maturity of the bonds, the form of the ballot, and the 401-18 presiding judge for each voting place. The presiding judge serving 401-19 at each voting place shall appoint one assistant judge and at least 401-20 two clerks to assist in holding the election. Notice of the 401-21 election shall be given by publishing a substantial copy of the 401-22 resolution in one newspaper published in each city contained in the 401-23 district for two consecutive weeks. The first publication shall be 401-24 at least 21 days before the date of the election. If a newspaper 401-25 is not published in a city, notice shall be given by posting a copy 401-26 of the resolution in three public places. 402-1 (e) The returns of the election shall be made to and 402-2 canvassed by the board. 402-3 (f) The Election Code is applicable to elections held under 402-4 this section except as otherwise provided by this chapter. 402-5 Sec. 266.016. EXAMINATION BY ATTORNEY GENERAL. After any 402-6 bonds, including refunding bonds, are authorized by the district, 402-7 the bonds and the record relating to their issuance shall be 402-8 submitted to the attorney general for examination as to the 402-9 validity of the bonds. If the bonds recite that they are secured 402-10 by a pledge of the proceeds of a contract previously made between 402-11 the district and any city or other governmental agency or district, 402-12 a copy of the contract and the proceedings of the city or other 402-13 governmental agency or district authorizing the contract shall also 402-14 be submitted to the attorney general. If the bonds have been 402-15 authorized and the contracts have been made in accordance with the 402-16 constitution and laws of the state, the attorney general shall 402-17 approve the bonds and the contracts, and the bonds then shall be 402-18 registered by the comptroller. After approval and registration, 402-19 the bonds and the contracts, if any, are valid and binding and are 402-20 incontestable for any cause. 402-21 Sec. 266.017. CONTRACTS WITH CITIES AND OTHERS. The 402-22 district may enter into contracts with cities and others for 402-23 supplying water to them. The district may also contract with a 402-24 city for the rental or leasing of, or for the operation of, the 402-25 water production, water supply, and water filtration or 402-26 purification and water supply facilities of the city for such 403-1 consideration as the district and the city may agree. The contract 403-2 may be on such terms and for such period as the parties may agree 403-3 and may provide that it shall continue in effect until bonds 403-4 specified in the contract and refunding bonds issued in lieu of 403-5 such bonds are paid. 403-6 Sec. 266.018. DISTRICT DEPOSITORY. (a) The board shall 403-7 designate one or more banks within the district to serve as 403-8 depository for the funds of the district. All funds of the 403-9 district shall be deposited in the depository bank or banks, except 403-10 that funds pledged to pay bonds may be deposited with the trustee 403-11 bank named in the trust agreement and except that funds shall be 403-12 remitted to the bank of payment for the payment of principal of and 403-13 interest on bonds. To the extent that funds in the depository 403-14 banks and the trustee bank are not insured by the Federal Deposit 403-15 Insurance Corporation the funds shall be secured in the manner 403-16 provided by law for the security of county funds. 403-17 (b) Before designating a depository bank or banks, the board 403-18 shall issue a notice stating the time and place when and where the 403-19 board will meet to designate the depository or depositories and 403-20 inviting the banks in the district to submit applications to be 403-21 designated depositories. The notice shall be published one time in 403-22 a newspaper or newspapers published in the district and specified 403-23 by the board. The term of service for depositories shall be 403-24 prescribed by the board. 403-25 (c) At the time stated in the notice, the board shall 403-26 consider the applications and the management and condition of the 404-1 banks filing them and shall designate as depositories the bank or 404-2 banks which offer the most favorable terms and conditions for the 404-3 handling of the funds of the district and which the board finds 404-4 have proper management and are in condition to warrant handling of 404-5 district funds. Membership on the board of an officer or director 404-6 of a bank shall not disqualify the bank from being designated as a 404-7 depository. 404-8 (d) If no applications are received by the time stated in 404-9 the notice, the board shall designate a bank or banks within or 404-10 outside the district on terms and conditions it determines 404-11 advantageous to the district. 404-12 Sec. 266.019. WATER APPROPRIATION PERMITS; ACQUISITION OF 404-13 WATER. The district may acquire water appropriation permits 404-14 directly from the commission or from owners of permits. The 404-15 district may purchase water or a water supply from any person, 404-16 firm, corporation, or public agency or from the United States 404-17 government or any of its agencies. 404-18 Sec. 266.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 404-19 DEPOSITS. All bonds of the district are legal and authorized 404-20 investments for banks, savings banks, trust companies, building and 404-21 loan associations, savings and loan associations, and insurance 404-22 companies. The bonds are eligible to secure the deposit of all 404-23 public funds of the state and all public funds of cities, towns, 404-24 villages, counties, school districts, or other political 404-25 corporations or subdivisions of the state. The bonds are lawful 404-26 and sufficient security for such deposits to the extent of their 405-1 value when accompanied by all unmatured coupons. 405-2 Sec. 266.021. BONDS EXEMPT FROM TAXATION. The 405-3 accomplishment of the purposes stated in this chapter is for the 405-4 benefit of the people of this state and for the improvement of 405-5 their properties and industries, and the district, in carrying out 405-6 the purposes of this chapter, will be performing an essential 405-7 public function under Section 59, Article XVI, Texas Constitution. 405-8 The district shall not be required to pay any tax or assessment on 405-9 a project or any part of a project under this chapter, and the 405-10 bonds issued under this chapter and the transfer of and income from 405-11 the bonds, including profits made on the sale of the bonds, shall 405-12 at all times be free from taxation within the state. 405-13 Sec. 266.022. TAX ROLLS. (a) The tax rolls of the cities 405-14 situated within the district as created and within annexed 405-15 territory shall constitute the tax rolls of the district until 405-16 assessments and tax rolls are made by the district. 405-17 (b) Before the sale and delivery of district bonds that are 405-18 payable wholly or partially from ad valorem taxes, the board shall 405-19 appoint a tax assessor and collector and a board of equalization 405-20 and shall cause taxes to be assessed, valuations to be equalized, 405-21 and tax rolls to be prepared. General laws applicable to water 405-22 control and improvement districts with reference to tax assessors 405-23 and collectors, boards of equalization, tax rolls, and the levy and 405-24 collection of taxes and delinquent taxes shall be applicable to the 405-25 district, except that the board of equalization, which is to be 405-26 appointed each year by the board, shall consist of one member 406-1 residing in each city contained in the district. 406-2 Sec. 266.023. ADOPTION OF RULES AND REGULATIONS. (a) The 406-3 board may adopt and promulgate all reasonable rules and regulations 406-4 to secure, maintain, and preserve the sanitary condition of all 406-5 water in and to flow into any reservoir owned by the district, or 406-6 which it may control by contract or otherwise, to prevent the waste 406-7 or unauthorized use of water, and to regulate residence, hunting, 406-8 fishing, boating, and camping, and all recreational and business 406-9 privileges, along or around any reservoir or any body of land or 406-10 easement owned or controlled by the district. 406-11 (b) The district may prescribe a reasonable penalty for the 406-12 breach of a rule or regulation of the district, which penalty shall 406-13 not exceed a fine of more than $200 or imprisonment for not more 406-14 than 30 days, or both a fine and imprisonment. The penalty is in 406-15 addition to any other penalties provided by the laws of this state 406-16 and may be enforced by a complaint filed in the appropriate court 406-17 of jurisdiction. A rule or regulation that provides a penalty for 406-18 a violation of the rule or regulation is not effective or 406-19 enforceable unless the district has published a substantive 406-20 statement of the rule or regulation and the penalty for its 406-21 violation once a week for two consecutive weeks in the county in 406-22 which the reservoir is situated or in any county in which it is 406-23 partly situated. The substantive statement must be as condensed as 406-24 possible to afford sufficient notice of the act forbidden by the 406-25 rule or regulation. A single notice may embrace a number of rules 406-26 or regulations. The notice must state that breach of the rule or 407-1 regulation will subject the violator to the imposition of a 407-2 penalty. The notice must also state that the full text of the rule 407-3 or regulation is on file in the principal office of the district 407-4 and may be read by any interested person. Five days after the 407-5 second publication of the required notice, the rule or regulation 407-6 shall be in effect, and ignorance of the rule or regulation shall 407-7 not constitute a defense to a prosecution for the enforcement of a 407-8 penalty. After the required publication, the rules and regulations 407-9 authorized by this subsection shall judicially be known to the 407-10 courts and shall be considered similar in nature to a valid penal 407-11 ordinance of a city of the state. 407-12 (c) The district may employ and constitute its own peace 407-13 officers, and any such officer or any county peace officer may make 407-14 arrests when necessary to prevent or stop the commission of any 407-15 offense against the rules or regulations of the district or against 407-16 the laws of the state, when the offense or threatened offense 407-17 occurs on any land, water, or easement owned or controlled by the 407-18 district, or may make an arrest at any place in the case of an 407-19 offense involving injury or detriment to any property owned or 407-20 controlled by the district. 407-21 Sec. 266.024. PARKS AND RECREATION. The district may 407-22 establish or otherwise provide for public parks and recreation 407-23 facilities and may acquire land adjacent to any reservoir in which 407-24 the district owns water storage rights for such purposes; provided, 407-25 however, that no money received from taxation or from bonds payable 407-26 wholly or partially from taxation shall be used for such purpose. 408-1 Sec. 266.025. ADDITIONAL SPECIFIC POWERS. (a) In addition 408-2 to all other powers and for the conservation and development of the 408-3 natural resources of the state within the meaning of Section 59, 408-4 Article XVI, Texas Constitution, the district is authorized to 408-5 purchase, construct, acquire, own, operate, maintain, repair, 408-6 improve, or extend at any location inside and outside its 408-7 boundaries, in the sole discretion of the district, any and all 408-8 works, improvements, facilities, plants, equipment, and appliances 408-9 incident, helpful, or necessary to: 408-10 (1) provide, under the provisions of Chapters 11 and 408-11 12, for the control, storage, preservation, transmission, 408-12 treatment, and distribution and use of storm water and floodwater, 408-13 the water of rivers and streams, and groundwater for irrigation, 408-14 power, hydroelectric, and all other useful purposes and to supply 408-15 water for municipal, domestic, power, hydroelectric, industrial, 408-16 oil flooding, mining, and commercial uses and purposes and all 408-17 other beneficial uses and purposes; or 408-18 (2) collect, transport, process, treat, dispose of, 408-19 and control all municipal, domestic, industrial, or communal waste, 408-20 whether in fluid, solid, or composite state, including the control, 408-21 abatement, or reduction of all types of pollution. 408-22 (b) The district may adopt, enforce, and collect all 408-23 necessary charges, fees, or rentals for providing any district 408-24 facilities or service and may require a deposit for any service or 408-25 facilities furnished, and the district may or may not provide that 408-26 the deposit will bear interest. The district may discontinue a 409-1 facility or service to prevent an abuse or enforce payment of an 409-2 unpaid charge, fee, or rental due the district. 409-3 (c) Facilities acquired or constructed under this section 409-4 shall be separate and apart from, and shall not constitute a part 409-5 of, the district's water system established under the trust 409-6 indenture securing North Texas Municipal Water District Water 409-7 Revenue Bonds, Series 1954, dated September 1, 1954, and all 409-8 additional bonds issued under that trust indenture, as 409-9 supplemented. Bonds issued under this section shall not be issued 409-10 as additional bonds under that trust indenture, but shall be issued 409-11 strictly under this section. 409-12 Sec. 266.026. APPLICATION OF REGIONAL WASTE DISPOSAL ACT. 409-13 (a) The district is a "district" under Chapter 30, and all 409-14 provisions of that chapter apply to the district except to the 409-15 extent of any conflict with this chapter, in which case the 409-16 provisions of this chapter shall prevail. 409-17 (b) A city, public agency, or other political subdivision 409-18 may contract with the district in any manner authorized by Chapter 409-19 30, provided that any city is authorized to contract with the 409-20 district in the manner authorized by Section 30.030(c). 409-21 (c) The district and all cities, public agencies, and other 409-22 political subdivisions shall have all the rights, powers, and 409-23 authority with respect to the control, storage, preservation, 409-24 transmission, treatment, and disposition of storm water and 409-25 floodwater, the water of rivers and streams, and groundwater that 409-26 are granted, permitted, and authorized by Chapter 30 with respect 410-1 to waste, waste disposal systems, and treatment facilities. 410-2 Contracts made under this subsection are subject to the provisions 410-3 of Subsection (b). 410-4 (d) All cities, public agencies, and other political 410-5 subdivisions may set, charge, and collect fees, rates, charges, 410-6 rentals, and other amounts for any service or facilities provided 410-7 under or in connection with any contract with the district and to 410-8 pledge amounts sufficient to make all payments required under the 410-9 contract. 410-10 Sec. 266.027. BOND ISSUANCE FOR SPECIFIC PURPOSES. (a) For 410-11 the purpose of providing funds to acquire, purchase, construct, 410-12 improve, enlarge, and equip any property, buildings, structures, or 410-13 other facilities for any purpose or power authorized by Section 410-14 266.025 or 266.026, the board may issue revenue bonds from time to 410-15 time and in one or more issues or series. The bonds may be payable 410-16 from and secured by liens on and pledges of all or any part of the 410-17 revenues, income, or receipts derived by the district from its 410-18 ownership, operation, lease, or sale of the property, buildings, 410-19 structures, or facilities, including the proceeds or revenues from 410-20 contracts with any person, firm, corporation, city, public agency, 410-21 or other political subdivision. The bonds may be issued to mature 410-22 serially or otherwise within 50 years from their date, and 410-23 provision may be made for the subsequent issuance of additional 410-24 parity bonds or subordinate lien bonds under any terms or 410-25 conditions that may be set forth in the resolution authorizing the 410-26 issuance of the bonds. 411-1 (b) The bonds, and any interest coupons pertaining to the 411-2 bonds, are negotiable instruments within the meaning and for all 411-3 purposes of the Business & Commerce Code, provided that the bonds 411-4 may be issued registrable as to principal alone or as to both 411-5 principal and interest. 411-6 (c) The bonds must be executed and may be made redeemable 411-7 before maturity and may be issued in the form, denominations, and 411-8 manner and under the terms, conditions, and details, may be sold in 411-9 the manner, at the price, and under the terms, and must bear 411-10 interest at the rates determined and provided in the resolution 411-11 authorizing the issuance of the bonds. If the bond resolution so 411-12 provides, the proceeds from the sale of the bonds may be used for 411-13 paying interest on the bonds during the period of the acquisition 411-14 or construction of facilities to be provided through the issuance 411-15 of the bonds, for paying expenses of operation and maintenance of 411-16 facilities, for creating a reserve fund for the payment of the 411-17 principal of and interest on the bonds, and for creating any other 411-18 funds, and the proceeds may be placed on time deposit or invested 411-19 until needed, to the extent and in the manner provided in the bond 411-20 resolution. 411-21 (d) The district may pledge all or part of its revenues, 411-22 income, or receipts from fees, rentals, rates, charges, and 411-23 contract proceeds or payments to the payment of the bonds, 411-24 including the payment of principal, interest, and any other amounts 411-25 required or permitted in connection with the bonds. The pledged 411-26 fees, rentals, rates, charges, proceeds, or payments shall be set 412-1 and collected in amounts that will be at a minimum sufficient, 412-2 together with other pledged resources, to provide for all payments 412-3 of principal, interest, and other amounts required in connection 412-4 with the bonds and, to the extent required by the resolution 412-5 authorizing the issuance of the bonds, to provide for the payment 412-6 of expenses in connection with the bonds and for the operation, 412-7 maintenance, and other expenses in connection with the facilities. 412-8 (e) The bonds may be additionally secured by mortgages or 412-9 deeds of trust on real property owned or to be acquired by the 412-10 district and by chattel mortgages or liens on personal property 412-11 appurtenant to the real property, and the board may authorize the 412-12 execution of trust indentures, mortgages, deeds of trust, or other 412-13 forms of encumbrances to evidence same. The district may pledge to 412-14 the payment of the bonds all or any part of any grant, donation, 412-15 revenues, or income received from the United States government or 412-16 any other public or private source, whether under an agreement or 412-17 otherwise. 412-18 (f) Bonds issued under this section may be refunded or 412-19 otherwise refinanced by the issuance of refunding bonds for that 412-20 purpose, under the terms, conditions, and details determined by 412-21 resolution of the board. All pertinent and appropriate provisions 412-22 of this section apply to the refunding bonds, and they shall be 412-23 issued in the manner provided in this section for other bonds 412-24 authorized under this section. The refunding bonds may be sold and 412-25 delivered in amounts necessary to pay the principal, interest, and 412-26 redemption premium, if any, of bonds to be refunded, at maturity or 413-1 on any redemption date. The refunding bonds may be issued to be 413-2 exchanged for the bonds being refunded. In the latter case, the 413-3 comptroller shall register the refunding bonds and deliver the 413-4 bonds to the holder or holders of the bonds being refunded, in 413-5 accordance with the provisions of the resolution authorizing the 413-6 refunding bonds. The exchange may be made in one delivery or in 413-7 several installment deliveries. Bonds issued at any time by the 413-8 district may also be refunded in the manner provided by any other 413-9 applicable law. 413-10 Sec. 266.028. BOND APPROVAL AND REGISTRATION. Bonds issued 413-11 under Section 266.027 and the appropriate proceedings authorizing 413-12 their issuance shall be submitted to the attorney general for 413-13 examination. When the bonds are to be issued to finance in whole 413-14 or in part water-using facilities, except treatment or distribution 413-15 facilities, the attorney general, before granting approval, shall 413-16 be furnished a resolution from the commission certifying that the 413-17 district possesses the necessary water right authorizing it to 413-18 impound and appropriate the water to be used by the project. If 413-19 the bonds recite that they are secured by a pledge of revenues of a 413-20 contract, a copy of the contract and the proceedings relating to 413-21 the contract shall be submitted to the attorney general. If the 413-22 attorney general finds that the bonds have been authorized and the 413-23 contract has been made in accordance with law, the attorney general 413-24 shall approve the bonds and the contract and then the bonds shall 413-25 be registered by the comptroller. 413-26 (b) After the approval and registration, the bonds and the 414-1 contract, if any, are incontestable in any court or other forum for 414-2 any reason and are valid and binding obligations in accordance with 414-3 their terms for all purposes. 414-4 Sec. 266.029. ADDITIONAL PROVISIONS REGARDING BONDS ELIGIBLE 414-5 FOR INVESTMENT AND TO SECURE DEPOSITS. Bonds issued under Section 414-6 266.027 are legal and authorized investments for banks, trust 414-7 companies, building and loan associations, savings and loan 414-8 associations, insurance companies of all kinds and types, and 414-9 trustees and for all interest and sinking funds and other public 414-10 funds of the state and all agencies, subdivisions, and 414-11 instrumentalities of the state, including counties, cities, towns, 414-12 villages, school districts, and all other kinds and types of 414-13 districts, public agencies, and bodies politic. The bonds are 414-14 eligible and lawful security for all deposits of public funds of 414-15 the state and all agencies, subdivisions, and instrumentalities of 414-16 the state, including counties, cities, towns, villages, school 414-17 districts, and all other kinds and types of districts, public 414-18 agencies, and bodies politic, to the extent of the market value of 414-19 the bonds when accompanied by any unmatured interest coupons. 414-20 Sec. 266.030. SUFFICIENT SOURCE OF AUTHORITY. (a) The 414-21 provisions of Sections 266.025-266.029 are wholly sufficient 414-22 authority for the issuance of bonds, the execution of contracts, 414-23 and the performance by the district and all cities, public 414-24 agencies, and other political subdivisions of other acts and 414-25 procedures authorized by those provisions, without reference to any 414-26 other law or any restrictions or limitations contained in that law, 415-1 except as specifically provided in this chapter. To the extent of 415-2 any conflict or inconsistency between provisions of this section 415-3 and any other provision of law, this section and Sections 415-4 266.025-266.029 shall prevail and control; provided, however, that 415-5 the district and all cities, public agencies, and other political 415-6 subdivisions may use the provisions of any other laws not in 415-7 conflict with this section to the extent convenient or necessary to 415-8 carry out any power or authority, express or implied, granted by 415-9 those sections. 415-10 (b) This chapter does not compel any city, customer, or 415-11 prospective customer to secure water, sewer service, or any other 415-12 service from the district except under contracts voluntarily 415-13 executed. 415-14 Sec. 266.031. COMPLIANCE REQUIRED. Nothing in this chapter 415-15 shall relieve the district from compliance with the provisions of 415-16 Chapters 11, 12, and 49. 415-17 CHAPTER 267. NORTHEAST TEXAS MUNICIPAL WATER DISTRICT 415-18 Sec. 267.001. CREATION. (a) A conservation and reclamation 415-19 district to be known as the "Northeast Texas Municipal Water 415-20 District" is created. The district is a governmental agency and a 415-21 body politic and corporate. 415-22 (b) The district is created under and is essential to 415-23 accomplish the purposes of Section 59, Article XVI, Texas 415-24 Constitution. 415-25 Sec. 267.002. DEFINITIONS. In this chapter: 415-26 (1) "Board" means the board of directors for the 416-1 district. 416-2 (2) "Director" means a member of the board. 416-3 (3) "District" means the Northeast Texas Municipal 416-4 Water District. 416-5 Sec. 267.003. BOUNDARIES. (a) The district comprises all 416-6 the territory that was contained within the cities of Mt. Pleasant, 416-7 Jefferson, Avinger, Hughes Springs, Lone Star, Ore City, Pittsburg, 416-8 Marshall, and Daingerfield on March 1, 1953. A defect in the 416-9 definition of the boundaries of any of those cities or in any past 416-10 or future proceedings for the annexation of territory to any of 416-11 those cities does not affect the validity of the district or any of 416-12 its powers or duties. 416-13 (b) The legislature finds that all the land included in the 416-14 district will benefit from the improvements to be acquired and 416-15 constructed by the district. 416-16 Sec. 267.004. BOARD OF DIRECTORS. (a) All powers of the 416-17 district shall be exercised by a board of directors. The directors 416-18 shall be appointed by a majority vote of the governing body of each 416-19 of the cities contained in the district. 416-20 (b) In appointing the first directors for a city with a 416-21 population of 5,000 or more, the governing body of the city shall 416-22 appoint one director for a term ending the following May 31 and one 416-23 director for a term ending one year after the following May 31. In 416-24 appointing subsequent directors, the governing body of each city 416-25 shall appoint in May of each year one director for a two-year term 416-26 beginning on June 1 of that year. 417-1 (c) In appointing the first director for a city with a 417-2 population of less than 5,000, the governing body of the city shall 417-3 appoint one director for a term ending the next May 31 of an 417-4 even-numbered year. In appointing subsequent directors, the 417-5 governing body shall appoint in May of each even-numbered year one 417-6 director for a two-year term beginning on June 1 of that year. 417-7 (d) Each director serves for a term of office as provided by 417-8 this section and until a successor is appointed and has qualified. 417-9 (e) A director must reside in and own taxable property in 417-10 the city from which the director is appointed. A member of a 417-11 governing body of a city or an employee of a city is not eligible 417-12 to serve as a director. 417-13 (f) A director shall subscribe the constitutional oath of 417-14 office and shall give bond for the faithful performance of the 417-15 director's duties in the amount of $5,000, the cost of which shall 417-16 be paid by the district. 417-17 (g) A majority of the members of the board constitutes a 417-18 quorum. 417-19 Sec. 267.005. DIRECTOR FEES. (a) Each director is entitled 417-20 to receive a fee of $50 for attending each meeting of the board, 417-21 provided, however, that not more than three meetings shall be held 417-22 in any one calendar month. 417-23 (b) A director is entitled to receive a fee of $50 per day 417-24 for each day devoted to the business of the district and to 417-25 reimbursement for actual expenses incurred in attending to district 417-26 business if such service and expense are expressly approved by the 418-1 board. 418-2 Sec. 267.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 418-3 shall elect from among its members a president and a vice president 418-4 of the district and other officers the board considers necessary. 418-5 (b) The president is the chief executive officer of the 418-6 district and the presiding officer of the board and has the same 418-7 right to vote as any other director. 418-8 (c) The vice president shall perform all duties and exercise 418-9 all powers conferred by this chapter on the president when the 418-10 president is absent or fails or declines to act. 418-11 (d) The board shall appoint a secretary and a treasurer, who 418-12 may or may not be members of the board, and may combine those 418-13 offices. The treasurer shall give bond in an amount required by 418-14 the board, but in no event less than $100,000. The bond must be 418-15 conditioned on the treasurer's accounting for all money that comes 418-16 into the treasurer's custody as treasurer of the district. Until 418-17 the district authorizes the issuance of bonds, the amount of the 418-18 official bond of the treasurer may be fixed by the board in any 418-19 amount not less than $5,000. 418-20 (e) The board shall appoint all necessary engineers, 418-21 attorneys, and other employees. 418-22 (f) The board shall adopt a seal for the district. 418-23 Sec. 267.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES. 418-24 (a) Other territory in Titus, Marion, Cass, Morris, Harrison, 418-25 Upshur, and Camp counties may be annexed to the district as 418-26 provided by this section. 419-1 (b) A petition for annexation must: 419-2 (1) be signed by 50 or a majority of the qualified 419-3 voters of the territory to be annexed who own taxable property in 419-4 the territory and who have duly rendered the property to the city, 419-5 if situated within a city or town, or county for taxation; 419-6 (2) be filed with the board; and 419-7 (3) describe the territory to be annexed by metes and 419-8 bounds or otherwise unless the territory is the same as that 419-9 contained in a city or town, in which event it shall be sufficient 419-10 to state that the territory to be annexed is that which is 419-11 contained within the city or town. 419-12 (c) If the board finds that the petition complies with and 419-13 is signed by the number of qualified persons required under 419-14 Subsection (b), that the annexation would be in the interest of the 419-15 territory to be annexed and the district, and that the district 419-16 will be able to supply water to the territory to be annexed, the 419-17 board shall adopt a resolution stating the conditions, if any, 419-18 under which territory may be annexed to the district and requesting 419-19 the commission to annex the territory to the district. A certified 419-20 copy of the resolution and of the petition shall be filed with the 419-21 commission. 419-22 (d) The commission shall adopt a resolution declaring its 419-23 intention to call an election in the territory to be annexed for 419-24 the purpose of submitting the proposition of whether or not the 419-25 territory shall be annexed to the district. The commission shall 419-26 set a time and place for a hearing to be held by the commission on 420-1 the question of whether the territory to be annexed will benefit 420-2 from the improvements, works, and facilities then owned or operated 420-3 or contemplated to be owned or operated by the district. A 420-4 railroad right-of-way that is not situated within the defined 420-5 limits of an incorporated city or town will not benefit from the 420-6 improvements, works, and facilities that the district is authorized 420-7 to construct. A railroad right-of-way may not be annexed to the 420-8 district unless the right-of-way is contained within the limits of 420-9 an incorporated city or town that has been annexed to the district. 420-10 (e) Notice of the adoption of the resolution stating the 420-11 time and place of the hearing and addressed to the citizens and 420-12 owners of property in the territory to be annexed shall be 420-13 published one time in a newspaper published within or having 420-14 general circulation within the territory to be annexed, as 420-15 designated by the commission, at least 10 days before the date of 420-16 the hearing. The notice must describe the territory to be annexed 420-17 in the same manner as required or permitted by the petition. 420-18 (f) All interested persons may appear at the hearing and 420-19 offer evidence for or against the intended annexation. The hearing 420-20 may proceed in the order and under the rules prescribed by the 420-21 commission and may be recessed from time to time. If, at the 420-22 conclusion of the hearing, the commission finds that all of the 420-23 lands in the territory to be annexed will benefit from the present 420-24 or contemplated improvements, works, or facilities of the district, 420-25 the commission shall adopt a resolution calling an election in the 420-26 territory to be annexed, stating the date and place or places for 421-1 holding the election and appointing a presiding judge for each 421-2 voting place who shall appoint the necessary assistant judges and 421-3 clerks to assist in holding the election. 421-4 (g) Notice of the election, stating the date of and places 421-5 for holding the election, the proposition to be voted on, and the 421-6 conditions under which the territory may be annexed, or making 421-7 reference to the resolution of the board for that purpose, shall be 421-8 published one time in a newspaper designated by the commission at 421-9 least 10 days before the date set for the election. If the 421-10 newspaper carrying the notice is not published within the territory 421-11 to be annexed, additional notice shall be given for the required 421-12 period by posting copies of the notice of the election at three 421-13 public places in the territory. 421-14 (h) Only qualified electors who reside in the territory to 421-15 be annexed may vote in the election. Returns of the election shall 421-16 be made to the commission. 421-17 (i) The commission shall canvass the returns of the election 421-18 and adopt a resolution declaring the results. If the resolution 421-19 shows that a majority of the votes cast are in favor of annexation, 421-20 the commission shall enter an order annexing the territory to the 421-21 district, and the annexation is incontestable except in the manner 421-22 and within the time for contesting elections under the Election 421-23 Code. A certified copy of the order shall be recorded in the deed 421-24 records of the county in which the territory is situated. 421-25 (j) The commission, in calling the election on the 421-26 proposition for annexation of territory, may include as a part of 422-1 the same proposition a proposition for the assumption of the 422-2 territory's part of the tax-supported bonds of the district then 422-3 outstanding and those voted but not yet sold and for the levy of an 422-4 ad valorem tax on taxable property in the territory to be annexed 422-5 along with the tax in the rest of the district for the payment of 422-6 the bonds. 422-7 (k) After territory is added to the district, the board may 422-8 call an election over the entire district for the purpose of 422-9 determining whether the district as enlarged shall assume the 422-10 tax-supported bonds, if any, then outstanding and those voted but 422-11 not yet sold and whether an ad valorem tax shall be levied on all 422-12 taxable property within the district as enlarged for the payment of 422-13 the bonds, unless the proposition is voted along with the 422-14 annexation election and becomes lawfully binding on the territory 422-15 annexed. The election shall be called and held in the same manner 422-16 as elections for the issuance of bonds as provided by this chapter. 422-17 (l) If no newspaper is published in the territory to be 422-18 annexed, the notices required by this section shall be posted in 422-19 three public places in the territory. 422-20 Sec. 267.008. APPOINTMENT OF DIRECTORS IN ANNEXED 422-21 TERRITORIES. (a) When any city, the territory of which is annexed 422-22 to the district, has a population of 5,000 or more, the governing 422-23 body of the city shall appoint one director for a term ending the 422-24 following May 31 and one director for a term ending one year after 422-25 the following May 31. In May of each year the governing body of 422-26 the city shall appoint one director for a two-year term as provided 423-1 by this chapter for cities originally included in the district. 423-2 (b) If a city, the territory of which is annexed to the 423-3 district, has a population of less than 5,000, the governing body 423-4 of the city shall appoint one director whose term shall expire the 423-5 following May 31 and in May of each second year thereafter shall 423-6 appoint one director for a two-year term. 423-7 (c) If a city initially subject to Subsection (b) later has 423-8 a population of 5,000 or more, it shall be entitled to two 423-9 directors to be appointed as provided by Subsection (a). 423-10 Sec. 267.009. USE OF CERTAIN WATERS AND FACILITIES. 423-11 (a) The district may acquire: 423-12 (1) any and all rights to storage and storage capacity 423-13 in the reservoir formed by Ferrell's Bridge Dam; and 423-14 (2) the right to take water from the reservoir in 423-15 which the dam will impound certain storm waters and floodwaters and 423-16 the unappropriated flow of Cypress Creek and its tributaries by 423-17 complying with the applicable provisions of this code and pursuant 423-18 to any contracts that the district may make with the United States 423-19 government in reference to those rights. 423-20 (b) The district may construct or otherwise acquire all 423-21 works, plants, and other facilities necessary or useful for the 423-22 purpose of diverting, further impounding, or storing the water 423-23 described by Subsection (a), processing the water, and transporting 423-24 it to cities and others for municipal, domestic, and industrial 423-25 purposes. 423-26 (c) To the extent permissible under the contract with the 424-1 United States government and its agencies, the district may dispose 424-2 of surplus waters under its control for irrigation purposes. 424-3 (d) Any works for the diverting of water from the impounding 424-4 dam may not be constructed until the plans for the works are 424-5 approved by the commission. 424-6 (e) None of the powers granted by this section extend 424-7 outside of Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp 424-8 counties. 424-9 Sec. 267.010. SEWAGE FACILITIES. As a proper aid to the 424-10 conservation, control, preservation, and distribution of the water 424-11 described by Section 267.009 for beneficial uses, the district may 424-12 construct, own, and operate sewage gathering, transmission, 424-13 treatment, and disposal facilities within the counties designated 424-14 in Section 267.009, charge for services rendered by the facilities, 424-15 and make contracts in reference to the facilities with 424-16 municipalities and others. 424-17 Sec. 267.011. DAMS AND RESERVOIRS. (a) The district may 424-18 construct and operate one or more impounding dams and reservoirs 424-19 within the territorial limits prescribed in Section 267.009. 424-20 (b) A dam or reservoir may not be constructed until a permit 424-21 is procured from and the plans are approved by the commission. 424-22 (c) The district may enter into contracts with individuals 424-23 and public or private corporations for supplying water from such 424-24 source, either at the reservoir or delivered to the purchasers. 424-25 (d) The district may use and pledge the net revenues from a 424-26 contract described by this section in connection with the issuance 425-1 of its bonds in accordance with Section 267.015. 425-2 Sec. 267.012. APPLICATION OF CERTAIN PROVISIONS. The 425-3 provisions of Section 267.013(e), under which the district is 425-4 required to accomplish at its sole expense the relocation, raising, 425-5 rerouting, changing the grade, or altering the construction of any 425-6 highway, railroad, electric transmission line, or pipeline, are 425-7 applicable to any work done by the district under authority of this 425-8 chapter. 425-9 Sec. 267.013. EMINENT DOMAIN. (a) For the purpose of 425-10 carrying out any power or authority conferred by this chapter the 425-11 district may acquire land and easements within and outside the 425-12 district in Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp 425-13 counties, including land above the probable high-water line around 425-14 any impounding or diversion reservoir, by condemnation in the 425-15 manner provided by Chapter 21, Property Code. 425-16 (b) The district is a municipal corporation within the 425-17 meaning of Section 21.021(c), Property Code. 425-18 (c) Except as provided by Subsection (d), the amount of and 425-19 character of interest in land and easements acquired under this 425-20 section shall be determined by the board. 425-21 (d) The district may condemn only an easement against 425-22 persons, firms, and corporations, or their receivers or trustees, 425-23 who have the power of eminent domain, and the fee title may not be 425-24 condemned. 425-25 (e) If the district, in the exercise of the power of eminent 425-26 domain or power of relocation or any other power granted under this 426-1 chapter, makes necessary the relocation, raising, rerouting, 426-2 changing the grade, or altering the construction of any highway, 426-3 railroad, electric transmission line, or pipeline, all such 426-4 necessary relocation, raising, rerouting, changing the grade, or 426-5 alteration of construction shall be accomplished at the sole 426-6 expense of the district. 426-7 Sec. 267.014. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A 426-8 construction contract requiring an expenditure of more than $25,000 426-9 may be made only after publication of a notice to bidders once each 426-10 week for two weeks before the awarding of the contract. 426-11 (b) The notice required under this section is sufficient if 426-12 it states the time and place at which the bids will be opened and 426-13 the general nature of the work to be done or the material, 426-14 equipment, or supplies to be purchased and states where and under 426-15 what terms copies of the plans and specifications may be obtained. 426-16 (c) The publication shall be in a newspaper published in the 426-17 district and designated by the board. 426-18 Sec. 267.015. BONDS. (a) For the purpose of providing a 426-19 source of water supply for cities and other users for municipal, 426-20 domestic, and industrial purposes as authorized by this chapter and 426-21 for the purpose of carrying out any other power or authority 426-22 conferred by this chapter, the district may issue negotiable bonds 426-23 payable from the revenues or taxes, or both revenues and taxes, of 426-24 the district as pledged by resolution of the board. Pending the 426-25 issuance of definitive bonds, the board may authorize the delivery 426-26 of negotiable interim bonds or notes that are eligible for exchange 427-1 or substitution by the definitive bonds. 427-2 (b) Bonds must be authorized by resolution of the board and 427-3 must be issued in the name of the district, signed by the president 427-4 or vice president, and attested by the secretary and have the seal 427-5 of the district impressed on the bonds. 427-6 (c) Bonds must mature serially or otherwise in not to exceed 427-7 40 years and may be sold at a price and under terms determined by 427-8 the board to be the most advantageous reasonably obtainable, 427-9 provided that the interest cost to the district, calculated by use 427-10 of standard bond interest tables currently in use by insurance 427-11 companies and investment houses, does not exceed six percent per 427-12 year. Within the discretion of the board, bonds may be made 427-13 callable prior to maturity at times and prices prescribed in the 427-14 resolution authorizing the bonds and may be made registrable as to 427-15 principal or as to both principal and interest. 427-16 (d) Bonds may be issued in more than one series and from 427-17 time to time as required for carrying out the purposes of this 427-18 chapter. 427-19 (e) Bonds may be secured by a pledge of all or part of the 427-20 net revenues of the district, of the net revenues of one or more 427-21 contracts made before or after the bonds are issued, or of other 427-22 revenues specified by resolution of the board. A pledge may 427-23 reserve the right, under conditions specified in the pledge, to 427-24 issue additional bonds which will be on a parity with or 427-25 subordinate to the bonds being issued. In this subsection, "net 427-26 revenues" means the gross revenues of the district less the amount 428-1 necessary to pay the cost of maintaining and operating the district 428-2 and its properties. 428-3 (f) For the purposes stated in Subsection (a), the district 428-4 may issue bonds payable from ad valorem taxes to be levied on all 428-5 taxable property in the district or may issue bonds secured by and 428-6 payable from both the taxes and the revenues of the district, 428-7 subject to the conditions prescribed in Section 267.018(a). The 428-8 board shall levy a tax sufficient to pay bonds issued payable 428-9 wholly or partially from ad valorem taxes and the interest on the 428-10 bonds as the bonds and interest become due. The rate of the tax 428-11 for any year may be set after giving consideration to the money 428-12 received from the pledged revenues available for payment of 428-13 principal and interest to the extent and in the manner permitted by 428-14 the resolution authorizing the issuance of the bonds. 428-15 (g) If bonds payable wholly from revenues are issued, the 428-16 board shall set and from time to time revise rates of compensation 428-17 for water sold and services rendered by the district that will be 428-18 sufficient to pay the expense of operating and maintaining the 428-19 facilities of the district, to pay bonds as they mature and the 428-20 interest as it accrues, and to maintain the reserve and other funds 428-21 as provided in the resolution authorizing the bonds. If bonds 428-22 payable partially from revenues are issued, the board shall set and 428-23 from time to time revise rates of compensation for water sold and 428-24 services rendered by the district that will be sufficient to assure 428-25 compliance with the resolution authorizing the bonds. 428-26 (h) From the proceeds of the sale of the bonds, the district 429-1 may set aside an amount for the payment of interest expected to 429-2 accrue during construction and for a reserve interest and sinking 429-3 fund, and the set-aside provision may be made in the resolution 429-4 authorizing the bonds. Proceeds from the sale of the bonds may 429-5 also be used for the payment of all expenses necessarily incurred 429-6 in accomplishing the purposes for which the district is created, 429-7 including expenses of issuing and selling the bonds and the expense 429-8 of creating and organizing the district. 429-9 (i) The district may invest all or any part of the proceeds 429-10 of the bonds before and during the period of construction in 429-11 obligations of or in obligations unconditionally guaranteed by the 429-12 United States government. 429-13 (j) In the event of a default or a threatened default in the 429-14 payment of principal of or interest on bonds payable wholly or 429-15 partially from revenues of the district, any court of competent 429-16 jurisdiction may, on petition of the holders of 25 percent of the 429-17 outstanding bonds of the issue in default or threatened with 429-18 default, appoint a receiver with authority to collect and receive 429-19 all income of the district except income from taxes, employ and 429-20 discharge agents and employees of the district, take charge of the 429-21 district's funds on hand (except funds received from taxes, unless 429-22 commingled), and manage the proprietary affairs of the district 429-23 without consent or hindrance by the board. The receiver may also 429-24 be authorized to sell or make contracts for the sale of water or 429-25 renew the contracts with the approval of the court appointing the 429-26 receiver. The court may vest the receiver with other powers and 430-1 duties the court finds necessary for the protection of the holders 430-2 of the bonds. 430-3 Sec. 267.016. REFUNDING BONDS. (a) The district may issue 430-4 refunding bonds for the purpose of refunding any outstanding bonds 430-5 authorized by this chapter and interest on the bonds. The 430-6 refunding bonds may be issued to refund more than one series of 430-7 outstanding bonds and may combine the pledges for the outstanding 430-8 bonds for the security of the refunding bonds, and the refunding 430-9 bonds may be secured by other or additional revenues. 430-10 (b) The provisions of this chapter with reference to the 430-11 issuance by the district of other bonds, the approval of the bonds 430-12 by the attorney general, and the remedies of the holders of the 430-13 bonds are applicable to refunding bonds. Refunding bonds shall be 430-14 registered by the comptroller on surrender and cancellation of the 430-15 bonds to be refunded, but in lieu of that process, the resolution 430-16 authorizing the issuance of the refunding bonds may provide that 430-17 the refunding bonds shall be sold and the proceeds of the sale 430-18 deposited in the bank where the original bonds are payable, in 430-19 which case the refunding bonds may be issued in an amount 430-20 sufficient to pay the interest on the original bonds to their 430-21 option date or maturity date, and the comptroller shall register 430-22 the refunding bonds without concurrent surrender and cancellation 430-23 of the original bonds. 430-24 Sec. 267.017. TRUST INDENTURE FOR BONDS. (a) Any bonds, 430-25 including refunding bonds, authorized by this chapter that are not 430-26 payable wholly from ad valorem taxes may be additionally secured by 431-1 a trust indenture under which the trustee may be a bank having 431-2 trust powers located either within or outside the state. The bonds 431-3 may, in the discretion of the board, be additionally secured by a 431-4 deed of trust lien on physical properties of the district and all 431-5 franchises, easements, water rights and appropriation permits, 431-6 leases, and contracts and all rights pertaining to the properties, 431-7 vesting in the trustee power to sell the properties for payment of 431-8 the indebtedness, power to operate the properties, and all other 431-9 powers and authority for the further security of the bonds. 431-10 (b) The trust indenture, regardless of the existence of the 431-11 deed of trust lien, may contain any provisions prescribed by the 431-12 board for the security of the bonds and the preservation of the 431-13 trust estate and may make provision for amendment or modification 431-14 of the trust indenture and the issuance of bonds to replace lost or 431-15 mutilated bonds. 431-16 (c) A purchaser under a sale under a deed of trust lien, 431-17 where one is given, shall be the owner of the properties, 431-18 facilities, and rights purchased and shall have the right to 431-19 maintain and operate the properties, facilities, and rights. 431-20 Sec. 267.018. BOND ELECTIONS. (a) Bonds payable wholly or 431-21 partially from ad valorem taxes, except refunding bonds, may not be 431-22 issued unless authorized by an election at which only the qualified 431-23 voters who reside in the district shall participate and a majority 431-24 of the votes cast at the election is in favor of the issuance of 431-25 the bonds. 431-26 (b) Before calling an election for the issuance of bonds 432-1 secured either wholly or partially by a pledge of ad valorem taxes, 432-2 the board shall publish, in the manner prescribed by this section, 432-3 a summary of the improvements to be financed with the proceeds of 432-4 the bonds to be issued. If the district has not provided 432-5 facilities for delivering water to a city within the district and 432-6 the summary of improvements does not include provision for 432-7 delivering water to the city, the district shall publish in the 432-8 city notice of its intention, on a date specified in the notice, to 432-9 adopt a resolution ordering an election involving the issuance of 432-10 the bonds and containing the summary of the proposed improvements. 432-11 The notice shall be published at least once in a newspaper 432-12 published in or having general circulation in the city. The date 432-13 of publication shall be at least 14 days before the date on which 432-14 the district intends to adopt a resolution ordering the election. 432-15 If no newspaper is published in the city, notice shall be given by 432-16 posting a copy of the notice of intention at three public places in 432-17 the city for at least 14 days before the date designated for 432-18 ordering the election. The district shall also mail a copy of the 432-19 election notice to the mayor of the city at least 14 days before 432-20 the date designated for ordering the election. Before the date 432-21 designated for ordering the election, the governing body of the 432-22 city notified may adopt a resolution stating that the district has 432-23 not provided facilities for delivering water to the city and does 432-24 not propose to provide the facilities necessary for that purpose 432-25 with the proceeds from the proposed tax-supported bonds on a 432-26 reasonable cost basis; stating that eliminating the city from the 433-1 district for all purposes is in the best interests of the people of 433-2 the city; and seeking withdrawal from the district. If, before the 433-3 date designated for ordering the election, a certified copy of the 433-4 resolution is delivered to the district and to the commission, the 433-5 district shall not proceed with the election until the commission 433-6 has acted finally on the request for withdrawal from the district. 433-7 (c) On receipt of a certified copy of a resolution from a 433-8 city requesting withdrawal from a district the commission shall set 433-9 a date for a hearing on the request, giving written notice of the 433-10 hearing to the city and to the district. If at the hearing the 433-11 commission finds that no facilities have been provided to the city 433-12 and that none will be provided from the proceeds of the proposed 433-13 tax-supported bonds for the delivery of water to the city on a 433-14 reasonable cost basis, the commission shall enter an order 433-15 eliminating the city from the district. In lieu of a hearing the 433-16 district may file with the commission a consent to the elimination 433-17 of the territory. However, if the commission finds that the 433-18 facilities are available or will be provided from the proceeds of 433-19 the proposed bonds on a reasonable cost basis, the commission shall 433-20 enter an order denying the request for withdrawal. After the 433-21 commission enters the order, the district may order an election 433-22 with the city either eliminated or retained in the boundaries of 433-23 the district as prescribed in the order. 433-24 (d) An election for the issuance of bonds payable wholly or 433-25 partially by ad valorem taxes may be called by the board without a 433-26 petition. The resolution calling the election shall specify the 434-1 time and location of the election, the purpose for which the bonds 434-2 are to be issued, the maximum amount of the bonds, the maximum 434-3 maturity of the bonds, the form of the ballot, and the presiding 434-4 judge for each voting place. The presiding judge serving at each 434-5 voting place shall appoint one assistant judge and at least two 434-6 clerks to assist in holding the election. Notice of the election 434-7 shall be given by publishing a substantial copy of the resolution 434-8 calling the election in one newspaper published in each city 434-9 contained in the district for two consecutive weeks. The notice 434-10 must first be published at least 21 days prior to the date of the 434-11 election. If no newspaper is published in a city, notice shall be 434-12 given by posting a copy of the resolution in three public places. 434-13 (e) The returns of the election shall be made to and 434-14 canvassed by the board. 434-15 (f) The Election Code is applicable to elections held under 434-16 this section except as otherwise provided by this chapter. 434-17 (g) Bonds not payable wholly or partially from ad valorem 434-18 taxes may be issued without an election. 434-19 Sec. 267.019. APPROVAL AND REGISTRATION OF BONDS. After any 434-20 bonds, including refunding bonds, are authorized by the district, 434-21 the bonds and the record relating to their issuance shall be 434-22 submitted to the attorney general for examination as to the 434-23 validity of the bonds. If the bonds recite that they are secured 434-24 by a pledge of the proceeds of a contract previously made between 434-25 the district and a city or other governmental agency or district, a 434-26 copy of the contract and the proceedings of the city or other 435-1 governmental agency or district authorizing the contract shall also 435-2 be submitted to the attorney general. If the bonds have been 435-3 authorized and the contracts have been made in accordance with the 435-4 constitution and laws of the state, the attorney general shall 435-5 approve the bonds and contracts and the bonds shall then be 435-6 registered by the comptroller. After the approval and 435-7 registration, the bonds and the contracts, if any, are valid and 435-8 binding and are incontestable for any cause. 435-9 Sec. 267.020. WATER SUPPLY CONTRACTS. The district may 435-10 contract with cities and others for the purpose of supplying water 435-11 to them. The district may also contract with a city for the rental 435-12 or leasing of, or for the operation of, the water production, water 435-13 supply, or water filtration or purification and water supply 435-14 facilities of the city for such consideration as the district and 435-15 the city may agree. The contract may be on the terms and for the 435-16 time the parties may agree, and the contract may provide that it 435-17 shall continue in effect until bonds specified in the contract and 435-18 refunding bonds issued in lieu of the bonds are paid. 435-19 Sec. 267.021. DISTRICT DEPOSITORY. (a) The board shall 435-20 designate one or more banks within the district to serve as 435-21 depository or depositories for the funds of the district. All 435-22 funds of the district shall be deposited in the depository bank or 435-23 banks, except that funds pledged to pay bonds may be deposited with 435-24 the trustee bank named in the trust agreement and except that funds 435-25 shall be remitted to the bank of payment for the payment of 435-26 principal of and interest on bonds. To the extent that funds in 436-1 the depository banks and the trustee bank are not insured by the 436-2 Federal Deposit Insurance Corporation, the funds shall be secured 436-3 in the manner provided by law for the security of county funds; or 436-4 the resolution or trust agreement, or both, securing the bonds may 436-5 require that any or all of the funds be secured by obligations of 436-6 or obligations unconditionally guaranteed by the United States 436-7 government. 436-8 (b) Before designating a depository bank or banks, the board 436-9 shall issue a notice stating the time and place when and where the 436-10 board will meet to designate the depository bank or banks and 436-11 inviting the banks in the district to submit applications to be 436-12 designated depositories. The notice must be published one time in 436-13 a newspaper or newspapers published in the district and specified 436-14 by the board. The term of service for depositories shall be 436-15 prescribed by the board. 436-16 (c) At the time stated in the notice of the meeting, the 436-17 board shall consider the applications and the management and 436-18 condition of the banks filing the applications and shall designate 436-19 as depositories the bank or banks which offer the most favorable 436-20 terms and conditions for the handling of the funds of the district 436-21 and which the board finds have proper management and are in 436-22 condition to warrant handling of district funds. Membership on the 436-23 board of an officer or director of a bank shall not disqualify the 436-24 bank from being designated as depository. 436-25 (d) If no applications are received by the time stated in 436-26 the notice of the meeting, the board shall designate a bank or 437-1 banks within or outside of the district based on the terms and 437-2 conditions the board finds advantageous to the district. 437-3 Sec. 267.022. WATER APPROPRIATION PERMITS; WATER SUPPLY 437-4 CONTRACTS. The district may acquire water appropriation permits 437-5 directly from the commission or from owners of permits. The 437-6 district may also purchase water or a water supply from any person, 437-7 firm, corporation, or public agency or from the United States 437-8 government or any of its agencies. The district may, within the 437-9 discretion of the board, contract with one or more large users of 437-10 water to acquire a water supply on an agreed allocation of storage 437-11 space as between the district and the user, or the district may 437-12 contract independently for the district's water supply. 437-13 Sec. 267.023. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF 437-14 DEPOSITS. (a) All bonds of the district are legal and authorized 437-15 investments for banks, savings banks, trust companies, building and 437-16 loan associations, savings and loan associations, insurance 437-17 companies, fiduciaries, trustees, and guardians and for the sinking 437-18 funds of cities, towns, villages, counties, school districts, or 437-19 other political corporations or subdivisions of the state. 437-20 (b) District bonds are eligible to secure the deposit of 437-21 public funds of the state and of cities, towns, villages, counties, 437-22 school districts, or other political corporations or subdivisions 437-23 of the state. The bonds are lawful and sufficient security for the 437-24 deposits to the extent of the value of the bonds when accompanied 437-25 by all unmatured coupons. 437-26 Sec. 267.024. EXEMPTION FROM TAXATION. The accomplishment 438-1 of the purposes stated in this chapter being for the benefit of the 438-2 people of this state and for the improvement of the properties and 438-3 industries of the state, the district in carrying out the purposes 438-4 of this chapter will be performing an essential public function 438-5 under the constitution and shall not be required to pay any tax or 438-6 assessment on a project or any part of a project under this 438-7 chapter. The bonds issued as provided by this chapter and the 438-8 transfer of and income from the bonds, including the profits made 438-9 on the sale of the bonds, are free from taxation within the state. 438-10 Sec. 267.025. ASSESSMENT, EQUALIZATION, LEVYING, AND 438-11 COLLECTION OF TAXES. (a) The tax rolls of the cities situated 438-12 within the district and within territory later annexed are adopted 438-13 and shall constitute the tax rolls of the district until 438-14 assessments and tax rolls are made by the district. 438-15 (b) Before the sale and delivery of district bonds payable 438-16 wholly or partially from ad valorem taxes, the board shall appoint 438-17 a tax assessor and collector and a board of equalization. The 438-18 board shall assess taxes, equalize valuations, and prepare tax 438-19 rolls. General laws applicable to water control and improvement 438-20 districts with reference to tax assessors and collectors, boards of 438-21 equalization, tax rolls, and the levy and collection of taxes and 438-22 delinquent taxes are applicable to the district, except that the 438-23 board of equalization which is to be appointed each year by the 438-24 board, shall consist of one member residing in each city contained 438-25 in the district. 438-26 Sec. 267.026. DISTRICT RULES AND REGULATIONS. (a) The 439-1 board may adopt and promulgate all reasonable rules or regulations 439-2 to secure, maintain, and preserve the sanitary condition of all 439-3 water in and to flow into a reservoir owned by the district, or 439-4 which the district may control by contract or otherwise, to prevent 439-5 the waste or unauthorized use of the water, and to regulate 439-6 residence, hunting, fishing, boating, camping, and all recreational 439-7 and business privileges, along or around the reservoir or any body 439-8 of land or easement owned or controlled by the district. 439-9 Sec. 267.027. RECREATIONAL FACILITIES. The district may 439-10 establish or otherwise provide for and operate public parks and 439-11 recreational facilities adjacent to or in the immediate vicinity of 439-12 Ferrell's Bridge Dam Reservoir, known as Lake of the Pines, and may 439-13 acquire, by purchase, lease, or otherwise, land for the parks or 439-14 facilities. However, no money received from taxation or from bonds 439-15 payable wholly or partially from taxation shall be used to provide 439-16 for the parks or facilities, and no land for the parks or 439-17 facilities shall be acquired through condemnation proceedings. The 439-18 district may make contracts, including lease and operating 439-19 agreements, in reference to the establishment of public parks and 439-20 recreational facilities with the United States government. The 439-21 district has the power and authority to prescribe and enforce rules 439-22 and regulations applicable to the parks and recreational facilities 439-23 as are granted, under the general law, to water control and 439-24 improvement districts. 439-25 Sec. 267.028. BOUNDARY MAP. The board shall file a map and 439-26 plat of the district, clearly showing the boundaries and limits, 440-1 with each of the following offices: two copies with the 440-2 commission, one copy with the secretary of state, and one copy with 440-3 the county clerk of each county in which any portion of the 440-4 district is located. 440-5 CHAPTER 268. NUECES RIVER AUTHORITY 440-6 Sec. 268.001. CREATION. (a) A conservation and reclamation 440-7 district to be known as the "Nueces River Authority" is created. 440-8 The authority is a governmental agency, a body politic and 440-9 corporate, and a municipality with the authority to exercise the 440-10 powers, rights, privileges, and functions in this chapter. The 440-11 authority is created under and is essential to accomplish the 440-12 purposes of Section 59, Article XVI, Texas Constitution. 440-13 (b) The rights, privileges, authority, and functions granted 440-14 in this chapter to the authority and the authority itself are 440-15 expressly subject to Sections 17.183-17.188, Sections 440-16 17.271-17.277, and Chapters 11, 12, and 26. 440-17 Sec. 268.002. DEFINITIONS. In this chapter: 440-18 (1) "Authority" means the Nueces River Authority. 440-19 (2) "Board" means the board of directors of the 440-20 authority. 440-21 (3) "Director" means a member of the board. 440-22 (4) "Person" includes an individual, corporation, 440-23 organization, government or governmental subdivision or agency, 440-24 business trust, estate, trust, partnership, association, and any 440-25 other legal entity. 440-26 (5) "State" means the State of Texas or any of its 441-1 agencies, departments, boards, political subdivisions, or other 441-2 entities. 441-3 (6) "United States" includes a department, bureau, and 441-4 any other agency of the United States of America. 441-5 (7) "Waste" means sewage, industrial waste, municipal 441-6 waste, recreational waste, agricultural waste, waste heat, solid 441-7 waste, or any other waste. 441-8 Sec. 268.003. BOUNDARIES. (a) The authority includes all 441-9 counties that lie wholly within the Nueces River Basin, all of San 441-10 Patricio, Nueces, and Jim Wells counties, and generally the 441-11 in-basin parts of other counties, except Webb County, that lie 441-12 partially within the basin. The actual boundaries of the area 441-13 within the authority may be described by metes and bounds as 441-14 follows: Beginning at a point in the boundary of the State of 441-15 Texas offshore of the City of Port Aransas at the Northeast corner 441-16 of Nueces County and the most southerly Southeast corner of Aransas 441-17 County; thence along the common line between Nueces County and 441-18 Aransas County in a westerly and then northerly direction to a 441-19 point in the center of the Intracoastal Canal cutoff between 441-20 Rockport and Aransas Pass, Texas; thence southerly along the 441-21 centerline of the said Intracoastal Canal to its point of 441-22 intersection with an extension of the boundary line between Aransas 441-23 County and San Patricio County for the northernmost Southeast 441-24 corner of San Patricio County and the Southwest corner of Aransas 441-25 County for an angle point; thence along the common line between San 441-26 Patricio County and Aransas County in a northwesterly direction 442-1 approximately 14 miles to a point on the Aransas River on the South 442-2 line of Refugio County for the Northeast corner of San Patricio 442-3 County and the West corner of Aransas County; thence along the 442-4 Aransas River and the common line between Refugio County and San 442-5 Patricio County in a west-northwesterly direction approximately 19 442-6 miles to a point on the Southeast line of Bee County for the 442-7 Southwest corner of Refugio County; thence along the common line 442-8 between Bee County and San Patricio County in a southwesterly 442-9 direction approximately 3 miles to a point for the Southeast corner 442-10 of Bee County; thence along the common line between Bee County and 442-11 San Patricio County in a west-northwesterly direction approximately 442-12 16 miles to the common corner of Live Oak, Bee, and San Patricio 442-13 Counties; thence in a northwesterly direction with the line between 442-14 Live Oak and Bee Counties approximately 14 miles; thence N. 442-15 approximately 25 miles to the most northern corner of Bee County; 442-16 thence N. 40 W. at approximately 19 1/2 miles the Karnes-Wilson 442-17 Counties line, at about 31 miles a point in the S.W. line of Bexar 442-18 County; thence approximately North 77 1/2 W. approximately 28 442-19 miles, to the S.W. corner of Bexar County; thence N.W. along the 442-20 northwest extension of the common boundary between Bexar and 442-21 Atascosa Counties 3 1/2 miles to a point; thence N. 30 W. 442-22 approximately 28 miles to a point in the North line of Medina 442-23 County; then North 64 W. approximately 34 miles to a point in the 442-24 west line of Bandera County; thence North approximately 3 miles to 442-25 the northwest corner of Bandera County; thence West with the line 442-26 of Real and Kerr Counties approximately 5 miles to S.W. corner of 443-1 Kerr County; thence North with the line between Kerr and Real 443-2 Counties approximately 13 miles to the N.E. corner of Real County; 443-3 thence West, North and West, with the north line of Real County, 443-4 approximately 18 miles to the Northwest corner of Real County; 443-5 thence South 75 west approximately 15 miles to the Court House in 443-6 Rock Springs in Edwards County; thence N. 68 W. approximately 15 443-7 miles to a point; thence S. 34 W. approximately 19 miles to a 443-8 point; thence S. 35 E. at 21 miles pass a point in the South line 443-9 of Edwards County, 34 miles to a point; thence S. 23 1/2 W. 443-10 approximately 14 miles to a point; thence S. approximately 8 miles 443-11 to Spofford Junction; thence South with the Eagle Pass branch of 443-12 G. H. & S. A. R. R. at 15 miles a point; thence South 12 miles to a 443-13 point; thence S. 41 1/2 E. 42 miles to the village of Dentonia in 443-14 Dimmit County; thence S. 27 1/2 d. E. approximately 10 miles to the 443-15 Dimmit and Webb Counties line; thence E. with said Dimmit-Webb 443-16 County line approximately 25 miles to the west line of La Salle 443-17 County; thence South with west line of La Salle County 443-18 approximately 5 miles to the S.W. corner of La Salle County, a 443-19 common corner with Webb County; thence E. with the Webb-La Salle 443-20 County line approximately 30 miles to the N.E. corner of Webb 443-21 County, the common corner of Webb, La Salle, McMullen and Duval 443-22 Counties; thence S. with the Webb-Duval County line approximately 443-23 27 miles to a point in the E. line of Webb County; thence N. 35 d. 443-24 E. 33 miles to a point on the 28 d. North Parallel; thence East 443-25 along the 28 degrees North Parallel approximately 17 miles to a 443-26 point on the East line of Duval County and the West line of Jim 444-1 Wells County for an interior corner; thence along the common line 444-2 between Duval County and Jim Wells County, South approximately 55 444-3 miles to a point on the North line of Brooks County for the 444-4 Southwest corner of Jim Wells County and the Southeast corner of 444-5 Duval County; thence along the common line between Jim Wells County 444-6 and Brooks County, East approximately 11 miles to a point for the 444-7 northernmost Southwest corner of Kleberg County and the 444-8 southernmost Southeast corner of Jim Wells County; thence along the 444-9 common line between Jim Wells County and Kleberg County, North 444-10 approximately 25.5 miles to the Northwest corner of Kleberg County 444-11 and an interior corner of Jim Wells County; thence along the common 444-12 line between Jim Wells County and Kleberg County, East 444-13 approximately 7.25 miles to a point in the center of San Fernando 444-14 Creek for the northernmost Southeast corner of Jim Wells County and 444-15 the northernmost Southwest corner of Nueces County; thence along 444-16 the centerline of San Fernando Creek and along the common line 444-17 between Kleberg County and Nueces County in a southeasterly 444-18 direction approximately 9 miles to a point for the southernmost 444-19 Southwest corner of Nueces County; thence along the common line 444-20 between Kleberg County and Nueces County, East approximately 32 444-21 miles to a point on the shoreline of Laguna Madre for an angle 444-22 point; thence along the common line between Kleberg County and 444-23 Nueces County in an east-northeasterly direction across Laguna 444-24 Madre approximately 5.25 miles to a point on the Northwest line of 444-25 Padre Island for an angle point; thence along the common line 444-26 between Kleberg County and Nueces County in a southeasterly 445-1 direction to a point on the boundary of the State of Texas in the 445-2 Gulf of Mexico off North Padre Island at the Northeast corner of 445-3 Kleberg County and the Southeast corner of Nueces County; thence 445-4 along the boundary of the State of Texas in the Gulf of Mexico and 445-5 along the Southeast line of Nueces County in a northeasterly 445-6 direction to the point of beginning; being all of Live Oak County, 445-7 1116 square miles, McMullen County 1302 square miles, La Salle 445-8 County 1561 square miles, Frio County 1124 square miles, Zavala 445-9 County 1348 square miles, Atascosa County, 1358 square miles, Real 445-10 County 619 square miles, Uvalde County 1589 square miles, San 445-11 Patricio County 680 square miles, Nueces County 838 square miles, 445-12 and Jim Wells County 846 square miles, and parts of the following 445-13 Counties with the number of square miles included in the authority: 445-14 Duval 378 square miles. 445-15 Dimmit 1200 square miles. 445-16 Maverick 574 square miles. 445-17 Kinney 602 square miles. 445-18 Medina 1113 square miles. 445-19 Bandera 224 square miles. 445-20 Edwards 922 square miles. 445-21 Bexar 84 square miles. 445-22 Wilson 98 square miles. 445-23 Karnes 85 square miles. 445-24 Bee 135 square miles. 445-25 (b) The boundaries and field notes of the authority form a 445-26 closure. If a mistake is made in copying the field notes in the 446-1 legislative process or a mistake is otherwise made in the field 446-2 notes, it shall in no way affect the organization, existence, and 446-3 validity of the authority, the right of the authority to issue any 446-4 type of bonds or refunding bonds for the purpose for which the 446-5 authority is created or to pay the principal of or interest on the 446-6 bonds, the right to assess, levy, and collect taxes, or in any 446-7 other manner affect the legality or operation of the authority or 446-8 the governing body of the authority. 446-9 (c) The written description of the boundaries in Subsection 446-10 (a) shall be recorded by the board in the minutes of the authority. 446-11 (d) If the board finds any land included in the field notes, 446-12 other than land in San Patricio, Nueces, and Jim Wells counties, 446-13 that is not actually included in the watershed, the board shall 446-14 exclude the land from the authority and file a certificate of 446-15 exclusion with the county clerk of the county in which the land is 446-16 located. The certificate of exclusion shall describe the 446-17 boundaries of the land excluded so that the land remaining in the 446-18 authority may be adequately identified. 446-19 Sec. 268.004. PURPOSE. The purpose of this chapter is to 446-20 provide by the means and in the manner authorized by this chapter, 446-21 for the conservation and development of the state's natural 446-22 resources within the Nueces River Basin, including: 446-23 (1) the control, storage, preservation, and 446-24 distribution of the state's water for domestic and municipal uses, 446-25 industrial uses, irrigation, mining and recovery of minerals, stock 446-26 raising, underground water recharge, electric power generation, 447-1 navigation, recreation and pleasure, and other beneficial uses and 447-2 purposes; 447-3 (2) the reclamation and irrigation of arid, semiarid, 447-4 and other land needing irrigation; 447-5 (3) the reclamation and drainage of overflowed land 447-6 and other land needing drainage; 447-7 (4) the maintenance and enhancement of the quality of 447-8 the water in the Nueces River Basin; 447-9 (5) the conservation and development of the forests, 447-10 water, and hydroelectric power; 447-11 (6) the navigation of inland and coastal water; and 447-12 (7) the provision of systems, facilities, and 447-13 procedures for the collection, transportation, handling, treatment, 447-14 and disposal of waste of all types. 447-15 Sec. 268.005. CONSTRUCTION OF CHAPTER. This chapter shall 447-16 be liberally construed to achieve its purposes, and any particular 447-17 grant of power contained in this chapter shall be held to specify 447-18 but not to limit general powers. This chapter is sufficient 447-19 authority for the performance of all acts and procedures authorized 447-20 by this chapter, without reference to any other law or any 447-21 restrictions or limitations included in any other law. The 447-22 authority may use the provisions of any other law not in conflict 447-23 with an express provision of this chapter to the extent necessary 447-24 or convenient to carry out any power, express or implied, granted 447-25 by this chapter or by any other law that by its terms is applicable 447-26 to the authority. 448-1 Sec. 268.006. BOARD OF DIRECTORS. (a) The authority shall 448-2 be governed by a board of directors composed of 21 members, who 448-3 shall be appointed by the governor with the advice and consent of 448-4 the senate. Each member must be a qualified elector and a resident 448-5 of a county that lies wholly or partly within the authority as 448-6 described in Section 268.003(a). 448-7 (b) The board shall include four members who are residents 448-8 of Nueces County, two members who are residents of San Patricio 448-9 County, and two members who are residents of Jim Wells County. Not 448-10 more than four persons who reside in Nueces County and not more 448-11 than two persons who reside in any other county that lies wholly or 448-12 partly within the authority may be appointed to or serve on the 448-13 board at the same time. 448-14 (c) Each member of the board serves for a term of six years 448-15 and until a successor is appointed and has qualified. Members of 448-16 the board serve staggered terms, with one-third of the members 448-17 taking office on February 1 of each odd-numbered year. 448-18 (d) Each member of the board shall qualify by taking the 448-19 constitutional oath of office and by executing a bond in an amount 448-20 determined by the board conditioned on the faithful performance of 448-21 the member's duties. 448-22 (e) All vacancies on the board shall be filled in the manner 448-23 provided by this section for making the original appointment. 448-24 (f) The governor may remove a director from office for 448-25 inefficiency, neglect of duty, misconduct in office, or absence 448-26 from three consecutive regular meetings of the board. Before a 449-1 director is removed from office, the board shall conduct a hearing 449-2 on the charges against the director. The director is entitled to 449-3 appear at the hearing and present evidence to show why the director 449-4 should not be removed from office. Not later than the 30th day 449-5 before the date of the hearing, the board shall give the director 449-6 notice of the charges against the director and the time and place 449-7 for the hearing. An affirmative vote of not less than 11 of the 449-8 directors is required to approve a recommendation for removal. A 449-9 recommendation for removal shall be forwarded to the governor for 449-10 the governor's consideration and action in accordance with the 449-11 provisions of this subsection. 449-12 (g) Eleven members of the board constitute a quorum for the 449-13 transaction of business. 449-14 (h) The board shall adopt and may amend necessary bylaws for 449-15 the conduct of the authority's business. 449-16 (i) The board shall elect a president, one or more vice 449-17 presidents, a secretary, a treasurer, and other officers as the 449-18 board considers necessary. The president, vice presidents, 449-19 secretary, and treasurer must be members of the board, but other 449-20 officers are not required to be members of the board. The offices 449-21 of secretary and treasurer may be combined, and the offices of 449-22 assistant secretary and assistant treasurer may be combined. 449-23 Sec. 268.007. INTEREST IN CONTRACT. A director who has a 449-24 financial interest in a contract to be executed by the authority 449-25 for the purchase, sale, lease, rental, or supply of property, 449-26 including supplies, materials, and equipment, or the construction 450-1 of facilities shall disclose that fact to the other directors and 450-2 may not vote on or participate in discussions during board meetings 450-3 on the acceptance of the contract. A financial interest of a 450-4 director does not affect the validity of a contract if the 450-5 disclosure is made and the director with the financial interest 450-6 does not vote on the question of entering into the contract. 450-7 Sec. 268.008. DIRECTOR COMPENSATION. (a) A director is 450-8 entitled to receive an allowance in an amount not exceeding that 450-9 provided under the general law of the state and reimbursement for 450-10 actual and necessary expenses incurred: 450-11 (1) for each day the director spends attending 450-12 meetings of the board; and 450-13 (2) for each day the director spends attending to the 450-14 business of the authority that is authorized by the board. 450-15 (b) A director is not entitled to receive a per diem 450-16 allowance for more than 50 days in any one calendar year. 450-17 Sec. 268.009. COMMITTEES. The board may appoint or 450-18 establish an executive committee and appoint or provide for the 450-19 appointment of other committees as necessary or desirable to assist 450-20 in conducting the business of the authority. Subject to the 450-21 applicable rules of law on delegation of powers, the board may 450-22 assign, delegate, or provide for the assignment or delegation of 450-23 any powers, duties, and functions to its committees as the board 450-24 may prescribe. If a committee member is not a director, the 450-25 committee member may not vote on matters coming before the 450-26 committee unless specifically authorized by the board. 451-1 Sec. 268.010. EXECUTIVE DIRECTOR. (a) The board may employ 451-2 an executive director and set the salary and other compensation of 451-3 the executive director by a majority vote of the board. 451-4 (b) The executive director is the chief executive officer of 451-5 the authority. Under policies determined by the board and the 451-6 executive committee, if such a committee is established under 451-7 Section 268.009, the executive director is responsible to the board 451-8 and the executive committee, if established, for: 451-9 (1) administering the directives of the board and the 451-10 executive committee; 451-11 (2) keeping the authority's records, including minutes 451-12 of meetings of the board and the executive committee; 451-13 (3) coordinating with state, federal, and local 451-14 agencies; 451-15 (4) developing plans and programs for the approval of 451-16 the board or the executive committee; 451-17 (5) hiring, supervising, training, and discharging the 451-18 authority's employees, as authorized by the board or the executive 451-19 committee; 451-20 (6) contracting for or retaining technical, 451-21 scientific, legal, fiscal, and other professional services, as 451-22 authorized by the board or the executive committee; and 451-23 (7) performing any other duties assigned to the 451-24 executive director by the board or the executive committee. 451-25 (c) The board may discharge the executive director on a 451-26 majority vote of the board. 452-1 Sec. 268.011. DIRECTOR AND EMPLOYEE BONDS. (a) The 452-2 executive director, the treasurer, and other officers, agents, and 452-3 employees of the authority charged with the collection, custody, or 452-4 payment of any money of the authority shall execute a fidelity 452-5 bond. The board shall approve the form, amount, and surety of the 452-6 bond. 452-7 (b) The authority shall pay the premiums on the bonds 452-8 required under this section and the director bonds required under 452-9 Section 268.006(d). 452-10 Sec. 268.012. PRINCIPAL OFFICE. The authority shall 452-11 maintain its principal office within its boundaries. 452-12 Sec. 268.013. RECORDS. (a) The authority shall keep 452-13 complete and accurate accounts of its business transactions in 452-14 accordance with generally accepted methods of accounting. 452-15 (b) The authority shall keep complete and accurate minutes 452-16 of its meetings. 452-17 (c) The authority shall keep its accounts, contracts, 452-18 documents, minutes, and other records at its principal office. 452-19 (d) Except as otherwise required by law, the authority shall 452-20 not disclose any records that it has relating to trade secrets or 452-21 economics of operation of any business or industry. 452-22 (e) Except as provided in Subsection (d), the authority 452-23 shall permit reasonable public inspection of its records during 452-24 regular business hours. 452-25 Sec. 268.014. SEAL. The authority shall adopt a seal, the 452-26 form of which it may alter from time to time. 453-1 Sec. 268.015. SUIT. The authority may sue and be sued in 453-2 its corporate name. 453-3 Sec. 268.016. GENERAL POWERS AND DUTIES. (a) The authority 453-4 shall administer this chapter and shall use its facilities and 453-5 powers to accomplish the purposes of this chapter. 453-6 (b) The authority shall have and may exercise all powers, 453-7 rights, and privileges necessary or convenient for accomplishing 453-8 the purposes of this chapter. 453-9 (c) The powers granted to the authority by this chapter are 453-10 cumulative of all powers granted by other laws that are by their 453-11 terms applicable to the authority. 453-12 Sec. 268.017. CONTROL AND EMPLOYMENT OF WATERS. 453-13 (a) Subject to the constitution and other laws of the state and 453-14 the continuing right of supervision of the state through the 453-15 commission, the authority has and may exercise authority and power 453-16 over the storm water and floodwater of the Nueces River Basin, 453-17 subject to the applicable provisions of Chapters 11 and 12. 453-18 (b) Subject to Chapters 11 and 12, the authority may 453-19 exercise the powers of control and employment of the state's water 453-20 in the following manner and for the following purposes: 453-21 (1) to provide for the control and coordination of 453-22 water use in the Nueces River Basin as a unit; 453-23 (2) to provide by adequate organization and 453-24 administration for the preservation of the rights of the people of 453-25 the different sections of the Nueces River Basin in the beneficial 453-26 use of water; 454-1 (3) to provide for conserving storm water, floodwater, 454-2 and unappropriated flow water of the Nueces River Basin, including 454-3 storing, controlling, transporting, treating, and distributing the 454-4 water, for preventing the escape of the water without the maximum 454-5 of public service, preventing the devastation of land from 454-6 recurrent overflows, and protecting life and property in the river 454-7 basin from uncontrolled floodwater; 454-8 (4) to provide for the conservation of water essential 454-9 for domestic and other water uses of the people of the Nueces River 454-10 Basin, including all necessary water supplies for cities, towns, 454-11 and industrial districts; 454-12 (5) to provide for the irrigation of land in the 454-13 Nueces River Basin where irrigation is required for agricultural 454-14 purposes or may be deemed helpful to more profitable agricultural 454-15 production and to provide for the equitable distribution of storm 454-16 water, floodwater, and unappropriated flow water to the regional 454-17 potential requirements for all uses; 454-18 (6) to provide for the encouragement and development 454-19 of drainage systems and provisions for drainage of land in the 454-20 valleys of the Nueces River and its tributaries needing drainage 454-21 for profitable agricultural and livestock production and industrial 454-22 activities and drainage of other land in the watershed area of the 454-23 authority requiring drainage for the most advantageous use; 454-24 (7) to provide for the conservation of all soils 454-25 against destructive erosion, thereby preventing the increased flood 454-26 dangers caused by destructive erosion; 455-1 (8) to control and make available for employment 455-2 floodwater, storm water, and unappropriated flow water, as 455-3 authorized by the commission, in the development of commercial and 455-4 industrial enterprises in all sections of the watershed area of the 455-5 authority; 455-6 (9) to provide, as set forth by Chapters 11 and 12, 455-7 for the control, storage, and employment of floodwater, storm 455-8 water, and unappropriated flow water in the development and 455-9 distribution of hydroelectric power where this use may be 455-10 economically coordinated with other and superior uses and 455-11 subordinated to the uses declared by law to be superior; and 455-12 (10) to provide, in the manner set forth in Chapters 455-13 11 and 12, for each purpose and use for which floodwater, storm 455-14 water, and unappropriated flow water when controlled and conserved 455-15 may be used in the performance of a useful service as contemplated 455-16 and authorized by the provisions of the constitution and other 455-17 laws. 455-18 (c) Subject to Chapters 11 and 12, the authority may 455-19 control, store, and preserve the water of the Nueces River and its 455-20 tributaries within the boundaries of the authority for any useful 455-21 purpose, may use, distribute, and sell the water for any beneficial 455-22 purpose inside and outside the authority, and may acquire water and 455-23 water rights inside and outside the authority. 455-24 (d) Plans and works provided by the authority and works 455-25 provided under authorization of the authority should give primary 455-26 consideration to the necessary and potential needs for water by or 456-1 within the respective areas constituting the watershed of the 456-2 Nueces River and its tributary streams. 456-3 Sec. 268.018. FORESTATION AND REFORESTATION. The authority 456-4 may forest, reforest, and aid in the foresting and reforesting of 456-5 the watershed area of the Nueces River and its tributaries. 456-6 Sec. 268.019. GROUNDWATER. (a) The authority may conduct 456-7 surveys and studies of the groundwater supplies in the authority 456-8 for the purpose of determining the location and quantity of 456-9 groundwater available for irrigation and other purposes and to 456-10 develop and ascertain other data and information that in the 456-11 judgment of the authority may be necessary to fully develop 456-12 irrigation and other water uses from the groundwater in the 456-13 authority. 456-14 (b) Subject to the requirements of applicable laws and with 456-15 the approval and under the supervision of the commission, the 456-16 authority may appropriate storm water and floodwater to recharge 456-17 underground freshwater-bearing sand and aquifers in the Nueces 456-18 River Basin. 456-19 (c) The authority shall cooperate with the Edwards Aquifer 456-20 Authority, or its lawful successor, and any other groundwater 456-21 district within the boundaries of the authority in groundwater 456-22 recharge projects in areas where a groundwater district has 456-23 jurisdiction. 456-24 Sec. 268.020. WATER QUALITY CONTROL. (a) The authority has 456-25 and may exercise all the powers granted to river authorities under 456-26 Subchapters E and F, Chapter 17, and Chapters 26 and 30. 457-1 (b) The authority may serve as the entity to provide 457-2 regional or areawide waste collection, treatment, and disposal 457-3 services, as provided by Subchapter C, Chapter 26. 457-4 Sec. 268.021. SOLID WASTE. The authority may purchase, 457-5 acquire, construct, maintain, and provide facilities, equipment, 457-6 and disposal sites to furnish solid waste collection, 457-7 transportation, treatment, and disposal services inside the 457-8 authority, may charge for the services, and may enter into 457-9 contracts for the services with any person. 457-10 Sec. 268.022. PARKS AND RECREATIONAL FACILITIES. The 457-11 authority may acquire land adjacent to or in the vicinity of the 457-12 Nueces River or any of its tributaries for park and recreational 457-13 purposes and may acquire, construct, and maintain park and 457-14 recreational facilities on that land. 457-15 Sec. 268.023. PERMITS AND LICENSES. (a) In the manner 457-16 provided by Chapters 11 and 12, the authority shall apply for any 457-17 permits, licenses, franchises, and other grants of authority it may 457-18 require from the commission. 457-19 (b) The authority may apply for any permits, licenses, 457-20 franchises, and other grants of authority it may require from the 457-21 Texas Water Development Board or any other federal, state, or local 457-22 governmental agency to exercise its powers and accomplish the 457-23 purposes under this chapter. 457-24 Sec. 268.024. SERVICE CONTRACTS AND CHARGES. (a) The 457-25 authority may enter into service contracts and may adopt 457-26 resolutions and orders establishing rates and providing for the 458-1 collection of fees and charges for the sale or use of water, the 458-2 services of water transmission, treatment, and storage facilities, 458-3 solid and liquid waste collection, treatment, and disposal 458-4 facilities and services, the use of park and recreational 458-5 facilities, the sale of power and electric energy, and any other 458-6 services or facilities sold, furnished, or supplied by the 458-7 authority. 458-8 (b) The fees and charges shall be sufficient to produce 458-9 revenue adequate to pay: 458-10 (1) expenses necessary for the operation and 458-11 maintenance of the properties and facilities of the authority; 458-12 (2) the interest on or the principal of any bonds or 458-13 other obligations issued by the authority when due and payable and 458-14 to fulfill any reserve or other fund obligations of the authority 458-15 in connection with the bonds or other obligations; and 458-16 (3) any other expenses the board may consider 458-17 necessary and proper for the operations of the authority. 458-18 Sec. 268.025. EMINENT DOMAIN. The authority may acquire 458-19 property of any kind, within or outside the authority, appropriate 458-20 for the exercise of its functions, through the exercise of the 458-21 power of eminent domain under Chapter 21, Property Code. 458-22 Sec. 268.026. ACQUISITION AND DISPOSITION OF PROPERTY. 458-23 (a) The authority may purchase, lease, acquire by gift, maintain, 458-24 use, and operate property of any kind, inside or outside the 458-25 authority, appropriate for the exercise of its functions. 458-26 (b) The authority may sell any property or interest in any 459-1 property owned by the authority by installments or otherwise, 459-2 including sales in a manner prescribed or authorized by Section 459-3 402.014, Local Government Code, Chapter 383, Health and Safety 459-4 Code, and Chapter 30. The authority may lease, exchange, or 459-5 otherwise dispose of any property or interest in any property. 459-6 Sec. 268.027. FACILITIES. The authority may acquire, 459-7 construct, extend, improve, maintain, reconstruct, use, and operate 459-8 any facilities inside or outside the authority necessary or 459-9 convenient to the exercise of its powers, rights, duties, and 459-10 functions. 459-11 Sec. 268.028. USE OF PUBLIC EASEMENTS. The authority may 459-12 use any public roadways, streets, alleys, or public easements 459-13 inside or outside the boundaries of the authority in the 459-14 accomplishment of its purposes without the necessity of securing a 459-15 franchise. 459-16 Sec. 268.029. RELOCATION OF FACILITIES. (a) If the 459-17 authority, in the exercise of the power of eminent domain, power of 459-18 relocation, or any other power, necessitates the relocation, 459-19 raising, rerouting, change in grade, or alteration of the 459-20 construction of any highway, railroad, electric transmission line, 459-21 telephone or telegraph properties and facilities, or pipelines, all 459-22 necessary relocation, raising, rerouting, change in grade, or 459-23 alteration of construction shall be accomplished at the sole 459-24 expense of the authority. 459-25 (b) In this section, "sole expense" means the actual cost of 459-26 the relocation, raising, rerouting, change in grade, or alteration 460-1 of grade or construction in providing a comparable replacement 460-2 without any enhancement of the facilities, after deducting the net 460-3 salvage value derived from the old facility. 460-4 Sec. 268.030. CONTRACTS GENERALLY. (a) The authority may 460-5 enter into contracts and execute instruments that are necessary or 460-6 convenient to the exercise of its powers, rights, duties, and 460-7 functions. 460-8 (b) A construction, maintenance, operation, or repair 460-9 contract, a contract for the purchase of material, equipment, or 460-10 supplies, or a contract for services, other than technical, 460-11 scientific, legal, fiscal, or other professional services, that 460-12 will require an estimated expenditure of more than $10,000 or is 460-13 for a term of six months or more shall be awarded to the lowest and 460-14 best bidder. A notice to bidders shall be published once each week 460-15 for three consecutive weeks before the date set for awarding the 460-16 contract. In the event of a catastrophe or calamity of any kind, 460-17 the authority may award contracts necessary to protect and preserve 460-18 the public health and welfare or the properties of the authority 460-19 without using the bidding procedures. 460-20 (c) The notice of bids is sufficient if it states the time 460-21 and place the bids will be opened, the general nature of the work 460-22 to be done, the material, equipment, or supplies to be purchased, 460-23 or the nonprofessional services to be rendered and states the terms 460-24 on which copies of the plans, specifications, or other pertinent 460-25 information may be obtained. 460-26 (d) Notice shall be published in a newspaper with general 461-1 circulation in the county or counties in which the contract is to 461-2 be performed and may also be published in any other appropriate 461-3 publication. 461-4 (e) A person who desires to bid on the construction of any 461-5 work that is advertised shall, on written application to the 461-6 authority, be furnished a copy of the plans and specifications or 461-7 other engineering and architectural documents showing the work to 461-8 be done and all the details of the work to be done. The authority 461-9 may charge a fee to cover the cost of making the copy. Bids must 461-10 be in writing, sealed, and delivered to the authority and must be 461-11 accompanied by a certified check on a responsible bank in the state 461-12 or, at the discretion of the authority, a bid bond from a company 461-13 approved by the authority, for at least one percent of the total 461-14 amount bid. The check or bond is forfeited to the authority if the 461-15 successful bidder fails or refuses to enter into a proper contract 461-16 or fails or refuses to furnish bond as required by law. Bids may 461-17 be rejected by the authority, and the authority may waive any 461-18 informality in the bids. 461-19 (f) Bids shall be opened at the place specified in the 461-20 published notice and shall be announced by the authority. The 461-21 place where the bids are opened and announced shall always be open 461-22 to the public. The award of the contract shall be made by the 461-23 board or by the executive committee if authorized by the board. 461-24 (g) The contract price of all construction contracts of the 461-25 authority may be paid in partial payments as the work progresses, 461-26 but the payments shall not exceed 90 percent of the amount due at 462-1 the time of the payment as shown by the report of the engineer of 462-2 the authority. At all times during the progress of the work, the 462-3 executive director shall inspect the construction or have the 462-4 construction inspected by the authority's engineer or the 462-5 engineer's assistants. On certification of the executive director 462-6 and the authority's engineer of the completion of the contract in 462-7 accordance with its terms, and in the case of any construction 462-8 contract for which notice to bidders is required by Subsection (b), 462-9 on approval of the board, the authority shall draw a warrant on its 462-10 depository to pay the balance due on the contract. 462-11 (h) The person, firm, or corporation to whom the contract is 462-12 awarded shall provide the performance and payment bonds required by 462-13 law. 462-14 (i) This section does not prohibit the authority from 462-15 purchasing or acquiring land or interests in land from any person, 462-16 from acquiring, constructing, or improving pollution control or 462-17 waste collection and disposal facilities as provided by Chapter 462-18 383, Health and Safety Code, Chapter 30, or other applicable laws, 462-19 or from purchasing or acquiring surplus property from a 462-20 governmental entity by negotiated contract and without necessity 462-21 for advertising bids. 462-22 (j) An officer, agent, or employee of the authority who is 462-23 financially interested in a contract described in Subsection (b) 462-24 shall disclose that fact to the board before the board votes on the 462-25 acceptance of the contract. 462-26 Sec. 268.031. AUTHORITY RULES. (a) The authority may adopt 463-1 and enforce rules reasonably required to effectuate the provisions 463-2 of this chapter. 463-3 (b) In adopting rules, the board shall comply, as 463-4 appropriate, with the requirements of Chapter 2001, Government 463-5 Code. 463-6 (c) The board shall print its rules and furnish copies to 463-7 any person on written request. 463-8 Sec. 268.032. PENALTIES. (a) A person who violates a rule 463-9 or order of the authority is subject to a civil penalty of not less 463-10 than $50 and not more than $1,000 for each day of violation. The 463-11 authority may sue to recover the penalty in a district court in the 463-12 county where the violation occurred. Penalties shall be paid to 463-13 the authority. 463-14 (b) The authority may sue for injunctive relief in a 463-15 district court in the county where a violation of a rule or order 463-16 occurred or is threatened. 463-17 (c) The authority may sue for injunctive relief and 463-18 penalties in the same proceeding. 463-19 Sec. 268.033. JUDICIAL REVIEW. (a) A person who is 463-20 adversely affected by a rule or order of the authority may sue the 463-21 authority in a district court to set aside the rule or order before 463-22 the 31st day after the date on which the rule or order took effect. 463-23 (b) Venue for suits under Subsection (a) is in any county 463-24 located wholly or partially in the authority where the plaintiff 463-25 resides or in the county in which the authority maintains its 463-26 principal office. 464-1 Sec. 268.034. SURVEYS AND ENGINEERING INVESTIGATIONS. The 464-2 authority shall make surveys and engineering investigations to 464-3 develop information for its use, and the board may make and 464-4 determine plans necessary to accomplish the purposes for which the 464-5 authority is created and do all things useful and helpful in 464-6 carrying out the plans and accomplishing the purposes of the 464-7 authority. 464-8 Sec. 268.035. ACCESS. (a) To provide for the safety and 464-9 welfare of persons and their property or for the protection and 464-10 security of the property and facilities of the authority, the board 464-11 may adopt rules with respect to the properties of the authority and 464-12 any water reservoir or dam, the construction, operation, or 464-13 management of which is participated in by the authority, to control 464-14 and regulate ingress, egress, and use and the operation of land and 464-15 water vehicles. 464-16 (b) All public roads, streets, and state highways crossing 464-17 the areas adjacent to the areas to be covered by any impounded 464-18 water shall remain open to allow public access to and from the 464-19 lakes created, unless a change is made by lawful authority. 464-20 Sec. 268.036. USE OF BED AND BANKS OF NUECES RIVER AND 464-21 TRIBUTARIES. Subject to the approval of the commission, the 464-22 authority may use the bed and banks of the Nueces River and its 464-23 tributaries for any purpose necessary to accomplish the plans of 464-24 the authority for storing, controlling, conserving, transporting, 464-25 and distributing storm waters, floodwaters, and appropriated flow 464-26 waters for useful purposes. 465-1 Sec. 268.037. MASTER PLAN. (a) The authority shall prepare 465-2 and file with the commission a master plan for the maximum 465-3 development of the soil and water resources of the entire Nueces 465-4 River watershed, including plans for the complete utilization, for 465-5 all economically beneficial purposes, of the water resources of the 465-6 watershed. The authority may amend the master plan as appropriate 465-7 to accomplish the purposes of this section. 465-8 (b) After the master plan or any amendments to the plan have 465-9 been filed with the commission, notice of the application of a 465-10 person who desires to acquire the right to use state water in the 465-11 Nueces River watershed shall be furnished to the authority. After 465-12 public hearing as provided by law, the commission may grant or deny 465-13 the proposed application in the manner required by law, 465-14 notwithstanding any provisions of the master plan or any amendments 465-15 to the plan to the contrary. 465-16 (c) Works constructed by the authority shall be constructed 465-17 and operated in a manner conforming to the master plan and any 465-18 amendments to the plan to the greatest degree practicable. 465-19 (d) None of the provisions of this section shall be 465-20 construed to interfere with any improvement of the Nueces River or 465-21 its tributaries or with grants or loans in aid of any improvement 465-22 made by the United States or the state. 465-23 Sec. 268.038. CONSERVATION PROGRAM. The board shall adopt 465-24 and implement a program of water conservation that incorporates 465-25 practices, techniques, and technologies that will reduce the 465-26 consumption of water, reduce the loss or waste of water, improve 466-1 the efficiency in the use of water, or increase the recycling and 466-2 reuse of water so that a water supply is made available for future 466-3 or alternative uses. The commission determines whether a program 466-4 will meet reasonably anticipated local needs and conditions. 466-5 Sec. 268.039. WORK WITH TEXAS WATER DEVELOPMENT BOARD. The 466-6 authority has all the powers vested in political subdivisions under 466-7 Chapters 16 and 17, including the powers necessary to enable the 466-8 authority to participate in the programs administered by the Texas 466-9 Water Development Board for the acquisition and development of 466-10 facilities, the sale or lease of facilities, financial assistance 466-11 to political subdivisions, and other authorized programs. 466-12 Sec. 268.040. GENERAL PROVISIONS. (a) The board may 466-13 provide for any expenditures it considers essential or useful in 466-14 the maintenance, operation, and administration of the authority. 466-15 (b) The authority may perform any other acts necessary or 466-16 convenient to the exercise of the powers, rights, privileges, or 466-17 functions conferred by this chapter or other laws. 466-18 Sec. 268.041. LIMITATIONS ON AUTHORITY AND SUPERVISION BY 466-19 COMMISSION. (a) The powers and duties granted and prescribed by 466-20 this chapter are subject to all legislative declarations of public 466-21 policy in the maximum use of the storm water, floodwater, and 466-22 unappropriated flow water of the Nueces River Basin for the 466-23 purposes for which the authority is created and are subject to the 466-24 continuing right of supervision of the state through the 466-25 commission. 466-26 (b) The commission is charged with the authority and duty to 467-1 approve or refuse to approve the adequacy of a plan for flood 467-2 control or conservation improvement purposes that is devised by the 467-3 authority for the achievement of the plans and purposes intended in 467-4 the creation of the authority and that contemplates improvements 467-5 supervised by the commission under the provisions of the general 467-6 law. 467-7 Sec. 268.042. CLEAN AIR FINANCING POWERS. In addition to 467-8 the powers and functions vested in the authority by this chapter, 467-9 the authority has and may exercise all the powers and functions 467-10 vested in river authorities under Chapter 383, Health and Safety 467-11 Code. 467-12 Sec. 268.043. DISBURSEMENT OF FUNDS. The authority may 467-13 disburse money only by check, draft, order, or other instrument, 467-14 signed by the person or persons authorized in the bylaws of the 467-15 board or by resolution of the board. 467-16 Sec. 268.044. FEES AND CHARGES. The authority shall 467-17 establish fees and charges that may not be higher than necessary to 467-18 fulfill the obligations imposed on the authority by this chapter. 467-19 Sec. 268.045. LOANS AND GRANTS. (a) The authority may 467-20 borrow money and accept grants and donations for corporate purposes 467-21 from private sources, the United States, the state, local 467-22 governments, or any other person. The authority may enter into any 467-23 agreement in connection with the loan, grant, or donation that is 467-24 not in conflict with the constitution and laws of this state. 467-25 (b) The source of any funds accepted by the authority, 467-26 including the amount and any restrictions placed by the donor on 468-1 the expenditure of the funds, shall be public information. 468-2 Sec. 268.046. FUNDS FOR SURVEYS AND DATA COLLECTION. The 468-3 authority may apply to the state, the United States, or any other 468-4 person for funds necessary to secure engineering surveys and the 468-5 compilation and collection of data relating to regional and general 468-6 conditions entering into and influencing the character and the 468-7 extent of the improvements necessary to accomplish the storage, 468-8 control, transportation, treatment, conservation, and equitable 468-9 distribution to the greatest public advantage of the floodwater, 468-10 normal flow, and storm water that are stored and controlled and to 468-11 accomplish or carry out any of the other purposes of this chapter. 468-12 The authority shall request an amount of funds the authority 468-13 considers sufficient for its purposes and may make the necessary 468-14 agreements with the party providing the funds and may appropriate 468-15 the amount of the estimated equitable contribution of the costs of 468-16 developing essential engineering data. 468-17 Sec. 268.047. TRUST FUND. Money collected by or donated, 468-18 granted, loaned, or advanced to the authority is declared to be 468-19 trust fund money for the purposes provided in this chapter. 468-20 Sec. 268.048. USE OF REVENUE AND PROPERTY. (a) All revenue 468-21 accruing to the authority shall be used by the authority pursuant 468-22 to this chapter and any other law relating to the authority. 468-23 (b) The use of any money or property of the authority for 468-24 any purpose not provided in this chapter is prohibited. 468-25 Sec. 268.049. INVESTMENT OF FUNDS. (a) Funds in the 468-26 treasury of the authority that are not required for current payment 469-1 of obligations of the authority or for sinking funds and that the 469-2 board considers available for investment may be invested or 469-3 reinvested by the authority in: 469-4 (1) direct obligations of or obligations the principal 469-5 and interest of which are guaranteed by the United States; 469-6 (2) direct obligations of or participation 469-7 certificates guaranteed by the Federal Intermediate Credit Banks, 469-8 Federal Land Banks, Federal National Mortgage Association, Federal 469-9 Home Loan Banks, Banks for Cooperatives, or the successor or 469-10 successors to any of those entities and in certificates of deposit 469-11 of any bank or trust company the deposits of which are fully 469-12 secured by a pledge of securities of any of the kind specified in 469-13 this subdivision; 469-14 (3) any other securities made eligible for such 469-15 investment by other laws and constitutional provisions; or 469-16 (4) any combination of the obligations, certificates, 469-17 or securities specified in this subsection. 469-18 (b) The type and maturity of investments made under this 469-19 section shall be determined by the board, which, in the case of 469-20 funds established in connection with the authorization of bonds, 469-21 shall provide appropriate recitals with regard to the issuance of 469-22 the bonds in the resolutions relating to the issuance of the bonds. 469-23 Income and profits on the investments shall be applied as directed 469-24 by the board. 469-25 Sec. 268.050. AUDIT. (a) The fiscal year of the authority 469-26 ends on August 31 of each year. 470-1 (b) On or before January 1 following the close of each 470-2 fiscal year, the state auditor shall audit the books and accounts 470-3 of the authority for the preceding fiscal year. The audit shall 470-4 show the amount of money received by the authority under this 470-5 chapter during the preceding fiscal year and shall show how, to 470-6 whom, and for what purpose the money was spent. 470-7 (c) A copy of the audit report shall be filed with the 470-8 authority, the governor, the lieutenant governor, the speaker of 470-9 the house of representatives, the attorney general, the commission, 470-10 and the comptroller. 470-11 (d) After completing the audit report, the state auditor 470-12 shall prepare a statement showing the actual cost of the audit and 470-13 shall certify the statement to the governor for approval. When the 470-14 statement is approved by the governor, it shall be delivered to the 470-15 authority. The authority shall pay the cost of the audit by 470-16 depositing the money with the state treasurer, who shall place the 470-17 money in the general revenue fund. 470-18 (e) Nothing in this section shall prohibit the authority 470-19 from employing the professional services of accountants for any 470-20 purpose. 470-21 Sec. 268.051. DEPOSITORY BANKS. (a) The board shall 470-22 designate one or more banks inside or outside the authority to 470-23 serve as depository for the funds of the authority. All money of 470-24 the authority shall be deposited in the depository bank or banks 470-25 except that bond proceeds, money pledged to pay bonds, money placed 470-26 in special funds, and money remitted to a bank of payment for the 471-1 payment of principal of and interest on bonds may be handled as 471-2 provided in a trust indenture or bond resolution. To the extent 471-3 that funds in the depository banks or a trustee bank are not 471-4 invested or insured by the Federal Deposit Insurance Corporation, 471-5 the funds shall be secured in the manner provided by law for the 471-6 security of county funds. 471-7 (b) Before designating a depository bank or banks, the board 471-8 shall issue a notice stating the time and place the board will meet 471-9 for that purpose and inviting the banks in the authority to submit 471-10 applications to be designated depositories. The term of service 471-11 for depositories shall be prescribed by the board. The notice 471-12 shall be published one time in a newspaper or newspapers of general 471-13 circulation in the authority specified by the board. In lieu of 471-14 the publication in a newspaper, a copy of the notice may be mailed 471-15 to each bank in the authority. 471-16 (c) At the time mentioned in the notice, the board shall 471-17 consider the applications and the management and condition of the 471-18 banks filing them and shall designate as depositories the bank or 471-19 banks that offer the most favorable terms and conditions for the 471-20 handling of the funds of the authority, that the board finds have 471-21 proper management, and that are in condition to warrant handling of 471-22 authority funds. Membership on the board of an officer or director 471-23 of a bank shall not disqualify the bank from being designated a 471-24 depository. 471-25 (d) If no applications are received by the time stated in 471-26 the notice, the board shall designate a bank or banks inside or 472-1 outside the authority on terms and conditions the authority finds 472-2 advantageous. 472-3 Sec. 268.052. BONDS. (a) For the purpose of carrying out 472-4 any power or authority conferred by this chapter, including the 472-5 expense of preparing the master plan and the payment of engineering 472-6 and other expenses in connection with the master plan, the 472-7 authority may issue bonds in three general classes: 472-8 (1) bonds secured by ad valorem taxes; 472-9 (2) bonds secured by a pledge of all or part of the 472-10 revenues accruing to the authority, including revenues received 472-11 from the sale of water or other products, rendition of service, 472-12 tolls, charges, and all other sources other than ad valorem taxes; 472-13 or 472-14 (3) bonds secured by a combination pledge of all or 472-15 part of the revenues described in Subdivision (2) and taxes. 472-16 (b) The bonds must be authorized by resolution of the board 472-17 and shall be issued in the name of the authority, signed by the 472-18 president or vice president, and attested by the secretary and 472-19 shall bear the seal of the authority. If authorized by the board, 472-20 the signatures of the president or vice president and the secretary 472-21 or of both may be printed or lithographed on the bonds, and the 472-22 seal of the authority may be impressed on the bonds or may be 472-23 printed or lithographed on the bonds. The bonds must be in the 472-24 form prescribed by the board, must be in any denomination or 472-25 denominations, must mature serially or otherwise in not to exceed 472-26 50 years from their date, shall bear any interest, and may be sold 473-1 at a price and under terms determined by the board to be the most 473-2 advantageous reasonably obtainable. Within the discretion of the 473-3 board, the bonds may be made callable prior to maturity at the 473-4 times and prices prescribed in the bonds and may be made 473-5 registrable as to principal or as to both principal and interest. 473-6 The bonds may be further secured by an indenture of trust with a 473-7 corporate trustee. 473-8 (c) Bonds may be issued in more than one series, and from 473-9 time to time, as required for carrying out the purposes of this 473-10 chapter. A pledge of revenue may reserve the right, under 473-11 conditions specified in the pledge, to issue additional bonds which 473-12 will be on a parity with or subordinate to the bonds then being 473-13 issued. 473-14 (d) The resolution authorizing the bonds or the trust 473-15 indenture further securing the bonds may specify additional 473-16 provisions that shall constitute a contract between the authority 473-17 and its bondholders. The board shall have full discretion to 473-18 provide additional provisions to the resolution, including the 473-19 authority to provide for a corporate trustee or receiver to take 473-20 possession of facilities of the authority in the event of default 473-21 on the part of the authority in fulfilling the covenants made in 473-22 the resolution. 473-23 Sec. 268.053. REFUNDING BONDS. (a) The authority may issue 473-24 refunding bonds for the purpose of refunding any outstanding bonds 473-25 authorized by this chapter and interest on the bonds. The 473-26 refunding bonds may be issued to refund one or more series of 474-1 outstanding bonds and may combine the pledges for the outstanding 474-2 bonds for the security of the refunding bonds, and the refunding 474-3 bonds may be secured by other or additional revenue. 474-4 (b) The provisions of this chapter with reference to the 474-5 issuance by the authority of other bonds, their security, their 474-6 approval by the attorney general, and the remedies of the holders 474-7 shall be applicable to refunding bonds. Refunding bonds shall be 474-8 registered by the comptroller on surrender and cancellation of the 474-9 bonds to be refunded, but in lieu of such surrender and 474-10 cancellation, the resolution authorizing the issuance of the 474-11 refunding bonds may provide that the bonds shall be sold and the 474-12 proceeds deposited in the bank where the original bonds are 474-13 payable, in which case the refunding bonds may be issued in an 474-14 amount sufficient to pay the principal of and the interest on the 474-15 original bonds to their option date or maturity date, and the 474-16 comptroller shall register the refunding bonds without concurrent 474-17 surrender and cancellation of the original bonds. 474-18 Sec. 268.054. APPROVAL AND REGISTRATION OF BONDS. After any 474-19 bonds, including refunding bonds, are authorized by the authority, 474-20 the bonds and the record relating to their issuance shall be 474-21 submitted to the attorney general for examination as to the 474-22 validity of the bonds. If bonds are to be issued to finance in 474-23 whole or in part water-using facilities, the attorney general 474-24 before giving approval shall be furnished a resolution from the 474-25 commission certifying that the authority possesses the necessary 474-26 water right authorizing the authority to impound and appropriate 475-1 the water to be utilized by the project. If the bonds recite that 475-2 they are secured by a pledge of the proceeds of a contract 475-3 previously made between the authority and a city or other 475-4 governmental agency, authority, or district, a copy of the contract 475-5 and the proceedings of the city or other governmental agency, 475-6 authority, or district authorizing the contract shall also be 475-7 submitted to the attorney general. If the attorney general finds 475-8 that the bonds have been authorized and the contracts have been 475-9 made in accordance with the constitution and laws of the state, the 475-10 attorney general shall approve the bonds and the contracts and the 475-11 bonds then shall be registered by the comptroller. After approval 475-12 and registration the bonds, and the contracts, if any, are valid 475-13 and binding and are incontestable for any cause. 475-14 Sec. 268.055. BOND ELECTION REQUIREMENTS. (a) Bonds 475-15 payable wholly or partially from ad valorem taxes, except refunding 475-16 bonds, may not be issued unless authorized by an election at which 475-17 the resident electors cast a majority of the votes in favor of the 475-18 issuance of the bonds. The election shall be held in accordance 475-19 with the provisions of Section 268.057 governing ad valorem tax 475-20 elections. 475-21 (b) Bonds not payable wholly or partially from ad valorem 475-22 taxes may be issued without an election. 475-23 Sec. 268.056. ADMINISTRATION AND MAINTENANCE TAX. (a) The 475-24 board may levy and collect ad valorem taxes for the maintenance and 475-25 improvements of the authority, for administrative expenses of the 475-26 authority, or for both purposes in the amounts voted in accordance 476-1 with the election procedure in Section 268.057. 476-2 (b) The maintenance tax and administration tax shall not 476-3 exceed the maximum rate voted, and the rate shall remain in effect 476-4 unless changed by subsequent vote. The tax rate may not exceed the 476-5 limit specified in Section 268.059. 476-6 Sec. 268.057. ELECTION. An ad valorem tax may not be levied 476-7 or collected for any purpose authorized in this chapter and bonds 476-8 payable wholly or partially from ad valorem taxes, except refunding 476-9 bonds, may not be issued, unless an election is held in the 476-10 authority and the taxes or bonds are duly and favorably voted by a 476-11 majority of the resident electors of the authority voting at the 476-12 election. Each election shall be called by resolution of the 476-13 board. The election resolution shall set forth the date of the 476-14 election, the proposition to be submitted and voted on, the polling 476-15 places, and any other matters considered advisable by the board. 476-16 There shall be at least two polling places in each county that lies 476-17 wholly inside the authority, one of which shall be at the county 476-18 seat. There shall be at least one polling place in the part of 476-19 each county that lies partly inside the authority. Notice of the 476-20 election shall be given by publishing a substantial copy of the 476-21 resolution calling the election in a newspaper or newspapers of 476-22 general circulation in the authority not less than twice in each 476-23 newspaper, with the interval between the publications to be at 476-24 least one week and with the first of each of the publications to be 476-25 at least 14 days prior to the date set for the election. To the 476-26 extent consistent with this section, the election shall be held in 477-1 accordance with the provisions of the Election Code. 477-2 Sec. 268.058. RENDITION, ASSESSMENT, EQUALIZATION, LEVYING, 477-3 AND COLLECTION OF TAXES. (a) The rendition and assessment of 477-4 property for taxation, the equalization of values, and the 477-5 collection of taxes for the benefit of the authority shall be in 477-6 accordance with the law applicable to counties, to the extent that 477-7 the law can be made applicable and except as specifically provided 477-8 in this section. 477-9 (b) The board may act as the board of equalization for the 477-10 authority in all counties that lie wholly or partly in the 477-11 authority or, to the extent authorized or not prohibited by the 477-12 constitution, may delegate the equalization functions for one or 477-13 more of those counties to the county board of equalization for each 477-14 county. In either case, the board of equalization shall have the 477-15 powers, functions, and duties of the commissioners courts in 477-16 counties to equalize the property values in accordance with the law 477-17 applicable to counties, to the extent that the laws can be made 477-18 applicable. If the board delegates the equalization functions to 477-19 one or more county boards of equalization as authorized in this 477-20 subsection, the board shall review the assessments of each county 477-21 board of equalization and shall adjust the assessments as necessary 477-22 to equalize values throughout the authority. Regardless of the 477-23 method used by the authority to accomplish the equalization 477-24 functions, renditions shall be made to the county tax 477-25 assessor-collector of the county in which property contained in the 477-26 authority is located, and the tax assessor-collector of the county 478-1 shall act as the tax assessor-collector for the authority for 478-2 property in the authority located in the county. 478-3 (c) It shall be the duty of the tax assessor-collector in 478-4 each county to place on the county tax rolls the additional column 478-5 or columns needed to show the taxes levied by the authority and the 478-6 amount of the taxes, based on the value of the property as approved 478-7 and equalized by the board. The fee of each county tax 478-8 assessor-collector for assessing and collecting the taxes levied by 478-9 the authority shall be one percent of the taxes collected, to be 478-10 paid over and disbursed in each county as are other fees of office. 478-11 (d) All the laws for the enforcement of state and county 478-12 taxes shall be available to the authority. The authority shall 478-13 have the right to cause the officers of each county to enforce and 478-14 collect the taxes due the authority in that county, as provided in 478-15 the law for the enforcement of state and county taxes. 478-16 (e) Taxes assessed and levied for the benefit of the 478-17 authority shall be payable and shall become delinquent at the same 478-18 time, in the same manner, and subject to the same discount for 478-19 advance payment as taxes levied by and for the benefit of the 478-20 county in which the property is taxable. The fee for collecting 478-21 delinquent taxes through prosecution of suit shall be 15 percent of 478-22 the taxes collected by the suit, to be paid over and disbursed in 478-23 each county as are other fees of office. 478-24 (f) Concurrently with the levy of county taxes by the 478-25 commissioners courts, the board shall levy the tax on all taxable 478-26 property in the authority that is subject to taxation and shall 479-1 immediately certify the tax rate to the tax assessor-collectors of 479-2 the counties that lie wholly or partly inside the authority. 479-3 Sec. 268.059. TAX LIMIT. The maximum rate of tax that may 479-4 be levied for any year for all purposes is 15 cents on each $100 of 479-5 taxable property, based on the assessed valuation of the property. 479-6 Sec. 268.060. TAXATION IN DEFINED AREA. The authority has 479-7 and may exercise, but is not required to exercise, the powers 479-8 specified in Sections 51.510-51.530 relating to improvements 479-9 peculiar to defined areas inside the authority. The tax rate limit 479-10 specified in Section 268.059 does not apply to improvements 479-11 constructed in the exercise of the powers authorized by this 479-12 section. The taxing powers in this section are cumulative of the 479-13 other taxing powers in this chapter. 479-14 Sec. 268.061. BONDS AS LEGAL INVESTMENTS AND SECURITY FOR 479-15 DEPOSITS. Bonds and refunding bonds of the authority are legal, 479-16 eligible, and authorized investments for banks; savings and loan 479-17 associations; insurance companies; fiduciaries; trustees; the 479-18 sinking funds of cities, towns, villages, counties, school 479-19 districts, or any other political corporations or subdivisions of 479-20 the state; and all public funds of the state or its agencies, 479-21 including the state permanent school fund. Bonds and refunding 479-22 bonds are eligible to secure the deposit of all public funds of the 479-23 state, cities, towns, villages, counties, school districts, or 479-24 other political corporations or subdivisions of the state, and the 479-25 bonds are lawful and sufficient security for the deposits to the 479-26 extent of the face value of the bonds, when accompanied by all 480-1 unmatured coupons. 480-2 CHAPTER 269. RED RIVER AUTHORITY OF TEXAS 480-3 Sec. 269.001. CREATION. (a) A conservation and reclamation 480-4 district to be known as the "Red River Authority of Texas" is 480-5 created. The authority is a governmental agency and a body politic 480-6 and corporate. 480-7 (b) The authority is created under and is essential to 480-8 accomplish the purposes of Section 59, Article XVI, Texas 480-9 Constitution. 480-10 Sec. 269.002. DEFINITIONS. In this chapter: 480-11 (1) "Authority" means the Red River Authority of 480-12 Texas. 480-13 (2) "Board" means the board of directors of the 480-14 authority. 480-15 (3) "Director" means a member of the board. 480-16 Sec. 269.003. TERRITORY. (a) The area of the authority 480-17 comprises the whole of all counties in Texas lying wholly or partly 480-18 within the watershed of the Red River and its Texas tributaries 480-19 whose confluences with the Red River are upstream from the 480-20 northeast corner of Bowie County, Texas, according to contour maps 480-21 on file in the office of the Texas Water Development Board. 480-22 (b) In addition to the counties lying wholly or partly 480-23 within the watershed, the area of the authority shall also comprise 480-24 the whole of the following Texas counties: Hutchinson, Hartley, 480-25 Lamar, Lipscomb, and Red River. 480-26 (c) For the limited purpose stated in Section 269.019, the 481-1 authority shall include Bowie County. Except as provided by 481-2 Section 269.019, none of the provisions of this chapter apply to 481-3 the following counties: Delta, Hopkins, Franklin, Titus, Morris, 481-4 Cass, Marion, and Bowie. 481-5 (d) No defect or irregularity in the boundary of the 481-6 authority, or overlap or conflict of the boundary with other 481-7 authorities or districts, shall in any manner affect the validity 481-8 of the authority. The legislature finds and determines that all of 481-9 the territory comprising the authority will benefit from the 481-10 exercise of the powers, rights, privileges, and functions conferred 481-11 by this chapter. 481-12 Sec. 269.004. OVERLAPPING TERRITORY. (a) Any overlapping 481-13 of territory of the authority with the territories or watershed of 481-14 any other district or authority shall not interfere with or affect 481-15 the powers, affairs, duties, or functions of the Canadian River 481-16 Municipal Water Authority or any other district or authority. 481-17 (b) Additional districts or authorities of a local nature 481-18 and peculiar to a defined area may be created either entirely or 481-19 partly within the authority. 481-20 (c) In the prosecution of its proposed improvements, the 481-21 authority shall cooperate in every practical manner with the 481-22 sponsors of existing or proposed districts or authorities. 481-23 Sec. 269.005. BOARD OF DIRECTORS. (a) All powers of the 481-24 authority shall be exercised by a board consisting of nine 481-25 directors. 481-26 (b) A director must be a freehold property taxpayer, a legal 482-1 voter of the state, and a resident of the director district that 482-2 the director is appointed to represent. 482-3 (c) The authority is divided into three districts for the 482-4 appointment and representation of directors as follows: 482-5 (1) Director District No. 1 includes Roberts, 482-6 Hemphill, Oldham, Potter, Carson, Gray, Wheeler, Deaf Smith, 482-7 Randall, Armstrong, Donley, Collingsworth, Parmer, and Castro 482-8 counties; 482-9 (2) Director District No. 2 includes Swisher, Briscoe, 482-10 Hall, Childress, Hale, Floyd, Motley, Cottle, Hardeman, Foard, 482-11 Wilbarger, Wichita, Crosby, Dickens, King, Knox, Baylor, Archer, 482-12 and Clay counties; and 482-13 (3) Director District No. 3 includes Montague, Cooke, 482-14 Grayson, Fannin, Lamar, Red River, and Bowie counties. 482-15 (d) Three directors shall be appointed from each of the 482-16 director districts. 482-17 (e) Each director is appointed by the governor with the 482-18 advice and consent of the senate. 482-19 (f) Directors serve for staggered six-year terms, holding 482-20 office after their appointment and qualification until their 482-21 successors are appointed and have qualified. If a vacancy occurs 482-22 on the board, the vacancy is filled by the governor in the manner 482-23 provided by this section for the unexpired term. 482-24 (g) Within 15 days after appointment, each director shall 482-25 qualify by taking the official oath and filing with the secretary 482-26 of state, and obtaining the secretary of state's approval of, a 483-1 good and sufficient bond in the amount of $5,000, payable to the 483-2 authority and conditioned on the faithful performance of the 483-3 director's duties. 483-4 Sec. 269.006. OFFICERS; VOTING REQUIREMENTS; WARRANTS. The 483-5 board shall elect a president, vice president, secretary, and 483-6 treasurer. Five directors constitute a quorum at any meeting, and 483-7 a concurrence of a majority of those present is sufficient in all 483-8 matters pertaining to the business of the authority, except that 483-9 the letting of construction contracts, and the authorization of the 483-10 issuance of warrants paying such contracts, require the concurrence 483-11 of seven directors. Warrants for the payment of money may be drawn 483-12 and signed by two officers or employees designated by standing 483-13 order entered in the minutes of the authority when such accounts 483-14 have been contracted and ordered paid by the board. 483-15 Sec. 269.007. DIRECTOR AND EMPLOYEE BONDS. The board shall 483-16 require an officer or employee who collects, pays, or handles any 483-17 funds of the authority to furnish good and sufficient bond, payable 483-18 to the authority, in an amount determined by the board to be 483-19 sufficient to safeguard the authority. The bond shall be 483-20 conditioned on the faithful performance of the person's duties and 483-21 on the person's accounting for all funds and property of the 483-22 authority. 483-23 Sec. 269.008. DUTIES OF OFFICERS. The president is the 483-24 chief executive officer of the authority and presides at board 483-25 meetings. The vice president acts as president in case of the 483-26 absence or disability of the president. The secretary is 484-1 responsible for keeping a record of all proceedings and all orders 484-2 of the board. The treasurer shall receive and receipt for all 484-3 funds received and expended. In case of the absence of the 484-4 secretary or the inability of the secretary to act, a secretary pro 484-5 tempore shall be selected by the board. 484-6 Sec. 269.009. RECORDS; AUTHORITY OFFICE. Records of the 484-7 authority shall be kept in a secure manner. The records are the 484-8 property of the authority and are subject to public inspection 484-9 during regular office hours. An office shall be established and 484-10 maintained within the authority, at a place determined by the 484-11 board, for the conduct of the authority's business. 484-12 Sec. 269.010. ACCOUNT RECORDS; AUDIT. (a) The authority 484-13 shall keep a complete book of accounts, and the account books and 484-14 records of the authority and of the depository of the authority 484-15 shall be audited by a certified public accountant annually as soon 484-16 as practicable after the end of the authority's fiscal year. 484-17 (b) The audit required by this section shall cover a fiscal 484-18 year ending September 30 of each year and a report on the audit 484-19 shall be submitted at the first regular meeting of the board after 484-20 the end of the fiscal year. A copy shall be filed in the office of 484-21 the authority, the depository of the authority, the office of the 484-22 auditor, and the commission and shall be open to public inspection. 484-23 Sec. 269.011. DIRECTOR FEES. (a) A director is entitled to 484-24 receive a fee not to exceed $25 per day for each day of service 484-25 necessary to the discharge of the director's duties, in addition to 484-26 all traveling expenses, provided the service is authorized by the 485-1 board. 485-2 (b) The directors shall file with the secretary on the last 485-3 day of each month, or as soon after that date as practicable, a 485-4 verified statement showing the actual amount of the fees due, and 485-5 warrants shall be issued for those amounts. 485-6 Sec. 269.012. GENERAL MANAGER AND EMPLOYEES. (a) The board 485-7 may employ a general manager for the authority and may delegate to 485-8 the general manager full authority to manage and operate the 485-9 affairs of the authority subject only to orders of the board. The 485-10 general manager's term of office and compensation shall be 485-11 determined by the board. 485-12 (b) The terms of employment and compensation of all 485-13 authority employees shall be determined by the board. 485-14 (c) A director may be employed as general manager of the 485-15 authority, but the compensation of a general manager who also 485-16 serves as a director shall be determined by a majority of the other 485-17 directors. A director who is employed as the general manager of 485-18 the authority shall continue to perform the duties of a director 485-19 but may not receive compensation as a director. 485-20 Sec. 269.013. SURETY BONDS. All bonds required to be given 485-21 by directors, officers, and employees of the authority shall be 485-22 executed by a surety company authorized to do business in this 485-23 state. The premiums on such bonds shall be paid by the authority. 485-24 Sec. 269.014. CONFLICT OF INTEREST; PENALTY. A director, 485-25 engineer, or employee of the authority may not be interested, 485-26 directly or indirectly, either for themselves or as agents for 486-1 anyone else, in any contract for the purchase of materials or the 486-2 construction of work by the authority. If a director, engineer, or 486-3 employee becomes interested, directly or indirectly, in such a 486-4 contract, the person shall be guilty of a misdemeanor and on 486-5 conviction shall be punished by a fine not to exceed $1,000, by 486-6 confinement in the county jail for not less than six months or more 486-7 than one year, or by both fine and imprisonment. 486-8 Sec. 269.015. GENERAL POWERS AND DUTIES. (a) The authority 486-9 shall have all the powers of the state under Section 59, Article 486-10 XVI, Texas Constitution, to effectuate flood control and the 486-11 conservation and use, for all beneficial purposes, of the storm 486-12 waters, floodwaters, and unappropriated waters of the Red River 486-13 watershed and its Texas tributaries, subject only to: 486-14 (1) declarations of policy by the legislature as to 486-15 use of water; 486-16 (2) continuing supervision and control by the 486-17 commission or any successor agency; 486-18 (3) the provisions of Section 11.024 prescribing the 486-19 priorities of uses of water; and 486-20 (4) water rights legally acquired at any time by 486-21 municipalities and other users. 486-22 (b) The authority shall exercise the powers described by 486-23 this section, to the greatest practicable extent, for the 486-24 conservation and beneficial utilization of the storm waters, 486-25 floodwaters, and unappropriated waters of the Red River watershed 486-26 and its Texas tributaries in the manner and for the purposes 487-1 specified in this section and in this chapter, including the power 487-2 to: 487-3 (1) provide for the study, correcting, and control of 487-4 both artificial and natural pollution of the Red River and its 487-5 tributaries; 487-6 (2) provide, through all practical and legal means, 487-7 for the control, conservation, and orderly development of the 487-8 watershed and water of the Red River and its Texas tributaries; 487-9 (3) provide for the preservation of the equitable 487-10 rights and beneficial use of the waters of the Red River and its 487-11 Texas tributaries for the people of the different sections of the 487-12 authority; 487-13 (4) provide for storing, controlling, and conserving 487-14 the waters of the Red River and its Texas tributaries in order to 487-15 prevent the escape of any of such waters without the maximum of 487-16 public service, prevent the devastation of lands from recurrent 487-17 overflows, and protect life and property in the watershed areas 487-18 from uncontrolled floodwaters; 487-19 (5) provide for the conservation of storm waters, 487-20 floodwaters, and unappropriated waters of the Red River watershed 487-21 and its Texas tributaries essential for the beneficial uses of the 487-22 people of the watersheds of the Red River and its Texas 487-23 tributaries; 487-24 (6) provide for the encouragement and development of 487-25 drainage systems and for drainage of lands needing drainage for 487-26 profitable agricultural production; 488-1 (7) provide for the conservation of all soils against 488-2 destructive erosion and prevent the increased risk of flood caused 488-3 by destructive soil erosion; and 488-4 (8) in all sections of the authority, control and make 488-5 storm waters, floodwaters, and unappropriated waters of the Red 488-6 River watershed available for employment in the development of 488-7 commercial, industrial, and agricultural enterprises and for all 488-8 purposes for which such waters, when controlled and conserved, may 488-9 be utilized in the performance of a useful service as contemplated 488-10 and authorized by the provisions of the constitution and the public 488-11 policy it declares. 488-12 (c) The authority may sue and be sued in its own name. 488-13 (d) The authority shall prepare a master plan for the 488-14 maximum development of the soil and water resources of the entire 488-15 Red River watershed within the authority, including plans for the 488-16 complete utilization, for all economically beneficial purposes, of 488-17 the water resources of the watershed. That portion of the master 488-18 plan and any amendments to the plan relating to soil conservation 488-19 and upstream flood prevention and watershed protection works in 488-20 furtherance of those purposes shall be prepared by the soil 488-21 conservation districts on the Red River watershed, subject to 488-22 approval by the State Soil and Water Conservation Board. The 488-23 master plan shall be filed with and approved by the commission. 488-24 (e) For the purpose of pollution control as provided by 488-25 Subsection (b)(1), the authority may promulgate rules and 488-26 regulations with regard to pollution, both artificial and natural, 489-1 and possesses police power to enforce its rules and regulations. 489-2 The authority may provide for a penalty for a violation of its 489-3 pollution rules consisting of a fine not to exceed $1,000 or 489-4 confinement in the county jail for not more than 30 days or both 489-5 such fine and confinement. For the purposes of this subsection, 489-6 the provisions of the general law pertaining to water control and 489-7 improvement districts shall govern, except as expressly provided by 489-8 this chapter. 489-9 Sec. 269.016. POWERS RELATING TO NAVIGATION, RECREATIONAL 489-10 FACILITIES, AND WATER TREATMENT. (a) In addition to other 489-11 purposes authorized by law, the authority is vested with all the 489-12 powers of the state under Section 59, Article XVI, Texas 489-13 Constitution, and with all the powers, rights, privileges, and 489-14 functions conferred upon navigation districts by general law. 489-15 (b) The authority may: 489-16 (1) promote, construct, maintain, and operate or aid 489-17 and encourage the construction, maintenance, and operation of 489-18 navigable canals or waterways, and all navigational systems or 489-19 facilities auxiliary to the canals or waterways, using the natural 489-20 bed and banks of the Red River, where practicable, and traversing 489-21 the route found by the authority to be the most feasible and 489-22 practicable to connect the Red River in Texas with any new 489-23 navigation canals to be constructed in the lower reaches of the Red 489-24 River or to connect the Red River with the Intracoastal Waterway, 489-25 and to construct or cause to be constructed a system of artificial 489-26 waterways and canals together with all locks and other works, 490-1 structures, and artificial facilities necessary and convenient for 490-2 the construction, maintenance, and operation of navigation canals 490-3 or waterways and all navigational systems and facilities auxiliary 490-4 to the canals or waterways; 490-5 (2) acquire, purchase, improve, extend, take over, 490-6 construct, maintain, repair, operate, develop, and regulate ports, 490-7 levees, wharves, docks, locks, warehouses, grain elevators, dumping 490-8 facilities, belt railways, lands, and all other facilities or aids 490-9 to navigation or aids necessary to the operation or development of 490-10 ports or waterways within the Red River Basin in Texas; provided, 490-11 however, that the powers conferred on the authority under the 490-12 provisions of this subdivision extend to a facility or aid 490-13 authorized under this subdivision only if the facility or aid is 490-14 situated in a county or counties included as part of the authority; 490-15 (3) acquire by gift or purchase properties of any 490-16 kind, including lighters, tugs, barges, and other floating 490-17 equipment of any nature, whether the property is real, personal, or 490-18 mixed, or any interest in property, within or outside the 490-19 boundaries of the authority necessary to the exercise of the 490-20 powers, rights, privileges, and functions conferred on the 490-21 authority by this chapter and may acquire property by condemnation 490-22 in the manner provided by Section 269.025; provided, however, that 490-23 the authority shall not be required to give bond for appeal or bond 490-24 for costs in any judicial proceedings; 490-25 (4) control, develop, store, and use the natural flow 490-26 and floodwaters of the Red River and its Texas tributaries for the 491-1 purpose of operating and maintaining the navigable canals or 491-2 waterways and all navigational systems or facilities auxiliary to 491-3 the canals or waterways; provided, however, that the navigational 491-4 use shall be subordinate to the consumptive use of water, and 491-5 navigation shall be incidental to the consumptive use of water; and 491-6 (5) effectuate the construction, maintenance, and 491-7 operation of bank stabilization facilities or channel rectification 491-8 or alignment to prevent and aid in preventing the devastation of 491-9 lands from recurrent overflows and to protect life and property in 491-10 the watershed of the Red River in Texas or any tributaries of the 491-11 river within the authority from uncontrolled floodwaters and may 491-12 store and conserve to the greatest beneficial use the storm waters, 491-13 floodwaters, and unappropriated waters of the Red River in Texas or 491-14 any tributaries of the river within the authority so as to prevent 491-15 the escape of any water without maximum beneficial use either 491-16 within or outside the boundaries of the authority. 491-17 (c) If the construction or maintenance and operation of 491-18 navigable canals or waterways, and all navigational systems or 491-19 facilities auxiliary to the canals or waterways, on the Red River 491-20 in Texas is taken over or performed by the federal government or 491-21 any agency of the federal government, the authority may make and 491-22 enter into any contracts lawfully required by the federal 491-23 government, including assignments and transfers of property and 491-24 rights of property and easements and privileges and any and all 491-25 other lawful things and acts necessary and required in order to 491-26 meet the requirements of the federal government or any agency of 492-1 the federal government in taking over the construction or 492-2 maintenance and operation of the navigable canals or waterways and 492-3 all navigational systems or facilities auxiliary to the canals or 492-4 waterways. 492-5 (d) The authority may acquire additional land adjacent to 492-6 any permanent improvement constructed within the authority, 492-7 regardless of when it was constructed, for the purpose of 492-8 developing public parks and recreational facilities and may acquire 492-9 necessary right-of-way for public ingress and egress to such areas. 492-10 (e) The authority may provide recreational facilities and 492-11 services and may enter into contracts and agreements with the 492-12 federal government or any agency of the federal government, the 492-13 Parks and Wildlife Department, or any county, municipality, 492-14 municipal corporation, person, firm, or nonprofit organization for 492-15 the construction, operation, and maintenance of the park or 492-16 recreational facility. The authority shall coordinate the 492-17 development of any public parks and recreational facilities with 492-18 the Parks and Wildlife Department for conformity with the State 492-19 Comprehensive Outdoor Recreation Plan. The authority may perform 492-20 all functions necessary to qualify for state or federal 492-21 recreational grants and loans. 492-22 (f) In addition to other purposes previously authorized by 492-23 law and as a necessary aid to the conservation, control, 492-24 preservation, and distribution of water for beneficial use, the 492-25 authority is authorized to purchase, construct, improve, repair, 492-26 operate, and maintain works and facilities necessary for the 493-1 collection, transportation, treatment, and disposal of sewage and 493-2 industrial waste and effluent and to issue negotiable bonds for 493-3 those purposes. The authority may make contracts with cities and 493-4 others under which the authority will collect, transport, treat, 493-5 and dispose of sewage from the cities or other entities. The 493-6 authority may also make contracts with any city for the use of any 493-7 collection, transportation, treatment, or disposal facilities owned 493-8 by the city or by the authority. 493-9 (g) Bonds issued under this section are payable from 493-10 revenues under any contract or contracts described in this chapter 493-11 or from other income of the authority. The bonds shall be in the 493-12 form and shall be issued in the manner prescribed by law for other 493-13 revenue bonds and as provided by Sections 269.033, 269.034, 493-14 269.035, and 269.036. 493-15 Sec. 269.017. ADDITIONAL PROVISIONS REGARDING CONTRACTS, 493-16 BONDS, FEES, AND MANAGEMENT OF AUTHORITY PROPERTY. (a) In this 493-17 section: 493-18 (1) "Person" means: 493-19 (A) an individual, partnership, corporation, or 493-20 other private entity; and 493-21 (B) a public agency. 493-22 (2) "Public agency" means an authority, district, 493-23 city, town, other political subdivision, joint board, or other 493-24 public agency created and operating under the laws of this state. 493-25 (b) The authority and all persons may contract, on terms and 493-26 conditions to which the parties may agree, with respect to any 494-1 power, function, or duty of the authority and may execute all 494-2 appropriate documents and instruments in connection with the 494-3 contract. The authority may issue bonds with respect to any of its 494-4 powers in the manner provided by Section 269.033, including the 494-5 powers granted in this section for the purpose of providing funds: 494-6 (1) to pay for the costs of engineering design and 494-7 studies, surveys, title research, appraisals, options on real or 494-8 personal property, and other related matters and activities in 494-9 connection with planning and implementing proposed projects or 494-10 improvements; and 494-11 (2) to operate and maintain any facilities. 494-12 (c) The authority may invest its funds, including bond 494-13 proceeds, in any manner or in any securities determined by the 494-14 board. 494-15 (d) Notwithstanding any provisions of this chapter and in 494-16 addition to all other powers granted by this chapter or by any 494-17 other law, the authority may undertake and carry out any 494-18 activities; enter into loan agreements, leases, or installment sale 494-19 agreements; and acquire, purchase, construct, own, operate, 494-20 maintain, repair, improve, or extend and may loan, lease, sell, or 494-21 otherwise dispose of, on terms and conditions including rentals, 494-22 sale price, or installment sale payments as the parties may agree, 494-23 at any place or location within the boundaries of the authority, 494-24 any and all money or bond proceeds, works, improvements, 494-25 facilities, plants, buildings, structures, equipment, and 494-26 appliances, and all property or any interest in property, that are 495-1 incident, helpful, or necessary to the accomplishment of the 495-2 purposes of this chapter. 495-3 (e) The authority may exercise the powers listed in 495-4 Subsection (d) to: 495-5 (1) provide for the control, storage, preservation, 495-6 transmission, treatment, distribution, and use of water, including 495-7 storm water, floodwater, and the water of rivers and streams, for 495-8 irrigation, electric energy or power, flood control, municipal, 495-9 domestic, industrial, agricultural, and commercial uses and 495-10 purposes and for all other beneficial purposes; 495-11 (2) supply water for municipal, domestic, electric 495-12 energy or power, industrial, irrigation, oil flooding, mining, 495-13 agricultural, and commercial uses and purposes and for all other 495-14 beneficial uses and purposes; 495-15 (3) generate, produce, distribute, and sell electric 495-16 energy or power; and 495-17 (4) facilitate the carrying out of any power, duty, or 495-18 function of the authority. 495-19 (f) It is found and determined by the legislature that all 495-20 of the purposes stated in Subsection (e) are for the conservation 495-21 and development of the natural resources of this state within the 495-22 meaning of Section 59, Article XVI, Texas Constitution. 495-23 (g) Each public agency may set, charge, and collect fees, 495-24 rates, charges, rentals, and other amounts for any services or 495-25 facilities provided by a utility operated by it or provided 495-26 pursuant to or in connection with any contract with the authority. 496-1 The fees, rates, charges, rentals, and other amounts may be charged 496-2 to and collected from inhabitants or from any users or 496-3 beneficiaries of that utility, service, or facility. Such fees, 496-4 rates, charges, rentals, and other amounts may include water 496-5 charges, sewage charges, solid waste disposal system fees and 496-6 charges, including garbage collection or handling fees, and other 496-7 fees or charges. 496-8 (h) The fees, rates, charges, rentals, and other amounts 496-9 authorized by this section may be used or pledged to make payments 496-10 to the authority required under the contract and may be pledged in 496-11 amounts sufficient to make all or any part of those payments to the 496-12 authority when due. The payments, if the parties agree in the 496-13 contract, constitute an expense of operation of any facilities or 496-14 utility operated by the public agency; provided, however, that an 496-15 agreement may not be made that would violate the United States or 496-16 Texas constitutions. 496-17 (i) This section is wholly sufficient authority for the 496-18 issuance of bonds, the execution of contracts, and the performance 496-19 of the other acts and procedures authorized in this chapter by the 496-20 authority and other persons, including public agencies, without 496-21 reference to any other law or any restrictions or limitations 496-22 included in any other law. To the extent of any conflict or 496-23 inconsistency between this subsection and any other law including a 496-24 home-rule city charter, this section prevails and controls; 496-25 provided, however, that the authority and other persons, including 496-26 public agencies, may use any other law not in conflict with this 497-1 subsection to the extent convenient or necessary to carry out any 497-2 power or authority granted by this section. 497-3 (j) This section does not compel any person, including a 497-4 public agency, to secure water, sewer service, or any other service 497-5 from the authority, except under voluntarily executed contracts. 497-6 Sec. 269.018. GASOHOL AND INDUSTRIAL ALCOHOL. (a) On 497-7 acquisition of any necessary authorization as provided by law, the 497-8 authority may engage in the manufacture and production of gasohol 497-9 only for use in operating equipment of the authority in an 497-10 emergency as determined by the general manager of the authority. 497-11 (b) The authority is eligible for a local industrial alcohol 497-12 manufacturer's permit under Chapter 47, Alcoholic Beverage Code, as 497-13 if it were an eligible Texas corporation, but its authority under 497-14 the permit is limited as provided by Subsection (a). 497-15 Sec. 269.019. LIMITED USE OF BOWIE COUNTY TERRITORY. 497-16 (a) Bowie County is added to the authority for the limited purpose 497-17 of participating in the United States Army Corps of Engineers Red 497-18 River Bank Stabilization and Navigation Project from Index, 497-19 Arkansas, to Denison Dam, and this chapter shall apply to Bowie 497-20 County to the extent necessary to accomplish that project. 497-21 (b) Bowie County is liable only for debt incurred by the 497-22 authority directly in connection with the Red River Bank 497-23 Stabilization and Navigation Project, and the board may exercise 497-24 the duties and powers, including the power of eminent domain, under 497-25 this chapter with relation to Bowie County only to the extent 497-26 necessary to accomplish that project. 498-1 Sec. 269.020. LIMITATION OF AUTHORITY; COMMISSION 498-2 SUPERVISION. The powers and duties granted to the authority by 498-3 this chapter are subject to all legislative declarations of public 498-4 policy for the maximum use of the waters of the authority's 498-5 watersheds for the purposes for which the authority is created. In 498-6 the exercise of its powers and duties the authority shall be 498-7 subject to continuing supervision by the state. The supervision 498-8 shall be exercised through the commission or its successor agency, 498-9 and the commission is charged with the authority and duty to 498-10 approve or to refuse to approve the adequacy and feasibility of any 498-11 plan or plans for flood control or conservation devised for the 498-12 achievement of the purposes intended in the creation of the 498-13 authority. 498-14 Sec. 269.021. CONTRACTS WITH PUBLIC ENTITIES. The authority 498-15 may execute contracts and enter into agreements necessary to 498-16 accomplish the purposes for which it is created. The authority is 498-17 authorized to enter into contracts with cities, corporations, 498-18 districts, the United States and its agencies, the state and its 498-19 agencies, or the states of Oklahoma, Arkansas, and Louisiana, the 498-20 confines of which are contiguous or adjacent to the Red River. 498-21 Sec. 269.022. CONTRACTS FOR WATER SYSTEMS; ACQUISITION OF 498-22 WATER RIGHTS. The authority is expressly authorized to contract 498-23 with cities, towns, or villages located within its boundaries for 498-24 the purchase, lease, use, management, control, or operation of 498-25 water distribution plants or systems owned by the cities, towns, or 498-26 villages, in accordance with such terms and conditions as may be 499-1 mutually agreed upon by the governing bodies of the authority and 499-2 the cities, towns, or villages. The authority may acquire by any 499-3 such contract surface water or groundwater rights belonging to a 499-4 city, town, or village; provided, however, that the authority shall 499-5 devote any water rights so acquired only to the uses the city, 499-6 town, or village from which the water rights were acquired would be 499-7 authorized to make of them. The authority shall use any water 499-8 rights acquired as provided by this section only for the purposes 499-9 of the water distribution plant or system of the city, town, or 499-10 village from which the water rights were acquired. 499-11 Sec. 269.023. WATER DELIVERY TO ELDORADO, OKLAHOMA. The 499-12 authority may enter into any contracts necessary to provide for the 499-13 sale and delivery of water to the City of Eldorado, Oklahoma. 499-14 Sec. 269.024. LOANS AND GRANTS. For the purpose of 499-15 providing funds requisite to secure the necessary studies, 499-16 engineering, and other services which may be necessary and to the 499-17 collection and computation of data respecting regional and general 499-18 conditions influencing the character and extent of the improvements 499-19 necessary to effect the purposes of the creation of the authority 499-20 to the greatest public advantage, the authority may solicit, seek 499-21 and accept contributions to its funds from any other district, 499-22 authority, or municipality, the federal government, the state, or 499-23 any other source. All grants and gratuities shall be strictly 499-24 accounted for and shall be subject to the same rules, regulations, 499-25 and orders as are other funds handled or disbursed by the 499-26 authority. 500-1 Sec. 269.025. EMINENT DOMAIN. The authority is vested with 500-2 the right of eminent domain in the manner provided by general law 500-3 pertaining to water control and improvement districts. If the 500-4 authority, in the exercise of the power of eminent domain or power 500-5 of relocation or any other power granted under this chapter, makes 500-6 necessary the relocation, raising, rerouting, changing the grade, 500-7 or altering the construction of any highway, railroad, electric 500-8 transmission line, telephone or telegraph properties and 500-9 facilities, or pipeline, all such necessary relocation, raising, 500-10 rerouting, changing of grade, or alteration of construction shall 500-11 be accomplished at the sole expense of the authority. 500-12 Sec. 269.026. ADDITIONAL POWERS. (a) Except as provided by 500-13 Subsection (b), the authority has and may exercise the functions, 500-14 powers, authority, rights, and duties necessary to accomplish the 500-15 purposes for which the authority is created, including 500-16 investigating and planning, acquiring, constructing, maintaining, 500-17 and operating all necessary properties, lands, rights, tenements, 500-18 easements, improvements, reservoirs, dams, canals, laterals, 500-19 plants, works, and facilities, including the acquisition within or 500-20 outside the authority of lands, rights-of-way, water rights, and 500-21 all other properties, tenements, easements, and other rights 500-22 incident, helpful to, or in aid of carrying out the purposes of the 500-23 authority as provided in this chapter. 500-24 (b) The authority may not engage in the generation or 500-25 distribution of electric power except as provided by Section 500-26 269.017. The right of eminent domain shall not be exercised and 501-1 shall not extend beyond the boundaries of the authority. 501-2 Sec. 269.027. FEES AND CHARGES. (a) The authority shall 501-3 establish and collect rates and other charges for the sale or use 501-4 of water or for its services sold, furnished, or supplied. The 501-5 fees and charges shall be reasonable and nondiscriminatory but 501-6 sufficient to produce revenues adequate to pay the expenses of the 501-7 authority in carrying out the functions for which it is created and 501-8 to fulfill the terms of any agreements made with the holders of any 501-9 of its obligations. 501-10 (b) The rates and charges for the sale or use of water 501-11 provided by this section shall be subject to review by the 501-12 commission as provided by general law. 501-13 Sec. 269.028. APPROVAL OF BONDS AND WARRANTS PRIOR TO 501-14 ISSUANCE. While the authority is expressly given the power to 501-15 issue its obligations or warrants for furnishing funds, before the 501-16 obligations or warrants may be issued, they shall bear the approval 501-17 of the state, acting through the attorney general. 501-18 Sec. 269.029. AUTHORITY PROCEDURES; SEAL. The authority 501-19 shall make bylaws for the management and regulation of its affairs, 501-20 including: 501-21 (1) adopting and using a corporate seal; 501-22 (2) appointing officers, attorneys, agents, and 501-23 employees and prescribing their duties and setting their 501-24 compensation; 501-25 (3) making contracts and executing instruments 501-26 necessary or convenient to the exercise of the powers, rights, 502-1 privileges, and functions conferred on the authority by this 502-2 chapter and the general laws of the state pertaining to water 502-3 control and improvement districts; 502-4 (4) borrowing money for its corporate purposes; 502-5 (5) borrowing money and accepting grants from the 502-6 United States, the state, or any other source; and 502-7 (6) in connection with any loan or grant, entering 502-8 into such agreements and assuming such obligations as may be 502-9 required. 502-10 Sec. 269.030. AUTHORITY DEPOSITORY. The board shall 502-11 designate one or more banks within the authority to serve as 502-12 depository for the funds of the authority. All funds of the 502-13 authority shall be deposited in the depository bank or banks, 502-14 except that funds pledged to pay bonds may be deposited with the 502-15 trustee bank named in the trust agreement and except that funds 502-16 shall be remitted to the bank of payment for the payment of 502-17 principal of and interest on bonds. To the extent that funds in 502-18 the depository banks and the trustee bank are not insured by the 502-19 Federal Deposit Insurance Corporation, the funds shall be secured 502-20 in the manner provided by law for the security of county funds. 502-21 Sec. 269.031. TAXES. Nothing in this chapter shall be 502-22 construed as authorizing the authority to levy or collect any form 502-23 of tax within the authority. 502-24 Sec. 269.032. GROUNDWATER. Nothing in this chapter shall be 502-25 construed as authorizing the authority to acquire, regulate, or 502-26 control in any way groundwater or groundwater rights by 503-1 condemnation, purchase, or otherwise or to develop, regulate, or 503-2 control the use of groundwater resources in any manner. This 503-3 chapter is intended to govern and shall be construed to govern and 503-4 apply to surface water only. 503-5 Sec. 269.033. BOND ISSUANCE. (a) For the purpose of 503-6 providing funds for any purpose authorized by this chapter, the 503-7 authority may issue bonds as authorized by this chapter. The 503-8 authority may, without the necessity of an election, issue bonds to 503-9 be payable from the revenues of the authority as pledged by 503-10 resolution of the board. 503-11 (b) Bonds must be authorized by resolution of the board and 503-12 shall be issued in the name of the authority, signed by the 503-13 president or vice president, attested by the secretary, and have 503-14 the seal of the authority impressed on the bonds. 503-15 (c) Bonds must mature serially or otherwise in not to exceed 503-16 50 years and may be sold at a price and under terms determined by 503-17 the board to be the most advantageous reasonably obtainable; 503-18 provided, however, that the interest rate on the bonds may not 503-19 exceed the maximum net effective interest rate, as that term is 503-20 defined by Chapter 1204, Government Code, that is legally 503-21 authorized at the time the bonds are issued. Within the discretion 503-22 of the board, bonds may be made callable prior to maturity at such 503-23 times and prices as may be prescribed in the resolution authorizing 503-24 the bonds and may be made registrable as to principal or as to both 503-25 principal and interest. 503-26 (d) Bonds may be issued in more than one series and from 504-1 time to time as required for carrying out the purposes of this 504-2 chapter. 504-3 (e) Bonds may be secured by a pledge of all or part of the 504-4 net revenues of the authority, of the net revenues of one or more 504-5 contracts made before or after the bonds are issued, or of other 504-6 revenues specified by resolution of the board. A pledge may 504-7 reserve the right, under conditions specified in the pledge, to 504-8 issue additional bonds which will be on a parity with or 504-9 subordinate to the bonds being issued. In this section, "net 504-10 revenues" means the gross revenues of the authority less the amount 504-11 necessary to pay the cost of maintaining and operating the 504-12 authority and its properties. 504-13 (f) The board shall set, and from time to time revise, rates 504-14 of compensation for water sold and services rendered by the 504-15 authority that will be sufficient to pay the expense of operating 504-16 and maintaining the facilities of the authority and to pay bonds as 504-17 they mature and the interest as it accrues and to maintain the 504-18 reserve and other funds as provided in the resolution authorizing 504-19 the bonds. 504-20 (g) From the proceeds of the sale of the bonds, the 504-21 authority may set aside an amount for the payment of interest 504-22 expected to accrue during construction and for a reserve interest 504-23 and sinking fund, and such provision may be made in the resolution 504-24 authorizing the bonds. Proceeds from the sale of the bonds may 504-25 also be used for the payment of all expenses necessarily incurred 504-26 in accomplishing the purposes for which the authority is created. 505-1 (h) In the event of a default or a threatened default in the 505-2 payment of principal of or interest on any of the bonds of the 505-3 authority any court of competent jurisdiction may, on petition of 505-4 the holders of 25 percent of the outstanding bonds of the issue in 505-5 default or threatened with default, appoint a receiver with 505-6 authority to collect and receive all income of the authority, 505-7 employ and discharge agents and employees of the authority, take 505-8 charge of the authority's funds on hand, and manage the proprietary 505-9 affairs of the authority without consent or hindrance by the board. 505-10 The receiver may also be authorized to sell or make contracts for 505-11 the sale of water or to renew such contracts with the approval of 505-12 the court appointing the receiver. The court may vest the receiver 505-13 with other powers and duties the court finds necessary for the 505-14 protection of the holders of the bonds. 505-15 Sec. 269.034. REFUNDING BONDS. (a) The authority may issue 505-16 refunding bonds for the purpose of refunding any outstanding bonds 505-17 authorized by this chapter and interest on the bonds. Refunding 505-18 bonds may be issued to refund more than one series of outstanding 505-19 bonds and may combine the pledges for the outstanding bonds for the 505-20 security of the refunding bonds, and refunding bonds may be secured 505-21 by other or additional revenues. 505-22 (b) The provisions of this chapter with reference to the 505-23 issuance of other bonds and their approval by the attorney general 505-24 and the remedies of the holders shall be applicable to refunding 505-25 bonds. Refunding bonds shall be registered by the comptroller on 505-26 surrender and cancellation of the bonds to be refunded, but in lieu 506-1 of that procedure, the resolution authorizing the issuance of the 506-2 refunding bonds may provide that the refunding bonds be sold and 506-3 the proceeds of the sale deposited in the bank where the original 506-4 bonds are payable, in which case the refunding bonds may be issued 506-5 in an amount sufficient to pay the interest on the original bonds 506-6 to their option date or maturity date, and the comptroller shall 506-7 register the refunding bonds without concurrent surrender and 506-8 cancellation of the original bonds. 506-9 Sec. 269.035. DEED OF TRUST LIEN. (a) Any bonds, including 506-10 refunding bonds, authorized by this chapter may be additionally 506-11 secured by a deed of trust lien on physical properties of the 506-12 authority and all franchises, easements, water rights and 506-13 appropriation permits, leases, and contracts and all rights 506-14 appurtenant to such properties, vesting in the trustee power to 506-15 sell the properties for payment of the indebtedness, power to 506-16 operate the properties, and all other powers and authority for the 506-17 further security of the bonds. 506-18 (b) The deed of trust may contain any provisions prescribed 506-19 by the board for the security of the bonds and the preservation of 506-20 the trust estate and may make provision for amendment or 506-21 modification of the deed of trust and the issuance of bonds to 506-22 replace lost or mutilated bonds. A purchaser under a sale under 506-23 the deed of trust shall be the owner of the dam or dams and the 506-24 other properties and facilities purchased and shall have the right 506-25 to maintain and operate them in the event of a forfeiture or 506-26 default on the part of the authority. 507-1 Sec. 269.036. APPROVAL AND REGISTRATION OF BONDS. After any 507-2 bonds are authorized by the authority, the bonds and the record 507-3 relating to their issuance shall be submitted to the attorney 507-4 general for examination as to the validity of the bonds and the 507-5 record. If the bonds recite that they are secured by a pledge of 507-6 the proceeds of a contract previously made between the authority 507-7 and any city or other governmental agency or district, a copy of 507-8 the contract and the proceedings of the city or other governmental 507-9 agency or district authorizing the contract shall also be submitted 507-10 to the attorney general. If the bonds have been authorized and the 507-11 contract has been made in accordance with the constitution and laws 507-12 of the state the attorney general shall approve the bonds and the 507-13 contract, and the bonds then shall be registered by the 507-14 comptroller. After their approval and registration, the bonds and 507-15 the contracts, if any, are valid and binding and are incontestable 507-16 for any cause. 507-17 Sec. 269.037. LEGISLATIVE DECLARATION; CONSTRUCTION. The 507-18 legislature hereby declares that the enactment of this chapter is 507-19 in fulfillment of a duty conferred on it by Section 59, Article 507-20 XVI, Texas Constitution, empowering the legislature to pass laws 507-21 for the preservation and conservation of the natural resources of 507-22 the state; that the authority created by this chapter is essential 507-23 to the accomplishment of the purposes of that constitutional 507-24 provision; and that this chapter operates on a subject in which the 507-25 state at large is interested. The legislature finds and determines 507-26 that all of the lands and other property included within the 508-1 boundaries of the authority will be benefited and that the 508-2 authority is created to serve a public use and benefit. All the 508-3 terms and provisions of this chapter are to be liberally construed 508-4 to effectuate its purposes. 508-5 Sec. 269.038. POWERS OF WATER CONTROL AND IMPROVEMENT 508-6 DISTRICTS. Except as otherwise provided by this chapter, the 508-7 authority is vested with all of the rights, powers, and privileges 508-8 conferred by the general laws of this state applicable to water 508-9 control and improvement districts created under authority of 508-10 Section 59, Article XVI, Texas Constitution. 508-11 CHAPTER 270. SABINE RIVER AUTHORITY OF TEXAS 508-12 Sec. 270.001. CREATION. (a) A conservation and reclamation 508-13 district to be known as the "Sabine River Authority of Texas" is 508-14 created. The authority is a governmental agency and a body politic 508-15 and corporate. 508-16 (b) The authority is created under and is essential to 508-17 accomplish the purposes of Section 59, Article XVI, Texas 508-18 Constitution. 508-19 (c) The authority may exercise the powers granted by Section 508-20 59, Article XVI, Texas Constitution, to districts created to 508-21 conserve, store, control, preserve, utilize, and distribute the 508-22 storm waters, floodwaters, and waters of the rivers and streams of 508-23 the state, as well as such powers as may be contemplated and 508-24 implied by the purposes of that provision of the constitution and 508-25 as may be conferred by general law and by the provisions of this 508-26 chapter; provided, however, that nothing in this chapter shall be 509-1 construed to authorize the authority to levy any taxes or special 509-2 assessments or to create any debt payable out of taxation. 509-3 (d) The authority may construct, maintain, and operate 509-4 within the state, in the watershed of the Sabine River and its 509-5 tributaries, within or outside the boundaries of the authority, any 509-6 and all works considered essential to the operation of the 509-7 authority and for its administration in the control, storing, 509-8 preservation, and distribution for all useful purposes of the 509-9 waters of the Sabine River and its tributaries, including the storm 509-10 waters and floodwaters. 509-11 (e) The authority may exercise such authority and power of 509-12 control and regulation over the waters of the Sabine River and its 509-13 tributaries as may be exercised by the state, subject to the 509-14 provisions of the constitution and the acts of the legislature. 509-15 (f) In all other laws, wherever reference is made to Sabine 509-16 River Authority, the reference shall mean "Sabine River Authority 509-17 of Texas." The Sabine River Authority of Texas shall succeed to 509-18 all rights, powers, and duties conferred or imposed by all statutes 509-19 on the Sabine River Authority and to all rights, powers, and duties 509-20 conferred by or assumed in all contracts to which the Sabine River 509-21 Authority is a party. 509-22 Sec. 270.002. DEFINITIONS. In this chapter: 509-23 (1) "Authority" means the Sabine River Authority of 509-24 Texas. 509-25 (2) "Board" means the board of directors of the 509-26 authority. 510-1 (3) "Director" means a member of the board. 510-2 Sec. 270.003. TERRITORY. (a) The area of the authority 510-3 comprises all of that part of the territory lying within the 510-4 watershed of the Sabine River and its tributaries that is situated 510-5 within the state according to the state contour maps on file in the 510-6 office of the Texas Water Development Board. 510-7 (b) On the request of the board the commission shall define 510-8 the boundaries so that they may be expressed by the metes and 510-9 bounds of the watershed described by Subsection (a); provided, 510-10 however, that the definition of the boundaries shall not be a 510-11 condition precedent to the exercise of any power conferred by this 510-12 chapter; and provided further, that all the area presently covered 510-13 by the Lower Neches Valley Authority is excepted from the area 510-14 covered by the Neches River Conservation District. It is the 510-15 intent of the legislature to preserve the present area and 510-16 authority of the Lower Neches Valley Authority. 510-17 Sec. 270.004. BOARD OF DIRECTORS. (a) The management and 510-18 control of the affairs of the authority are vested in a board of 510-19 directors, consisting of nine members. Each director must be a 510-20 freehold property taxpayer and a legal voter of the state. 510-21 (b) Directors are appointed by the governor with the advice 510-22 and consent of the senate and serve staggered six-year terms. 510-23 (c) Four members of the board must reside within a county 510-24 located in the upper basin of the Sabine River, including Collin, 510-25 Rockwall, Kaufman, Hunt, Rains, Van Zandt, Hopkins, Franklin, Wood, 510-26 Smith, Upshur, Gregg, Harrison, and Rusk counties, and four members 511-1 of the board must reside within a county located in the lower basin 511-2 of the Sabine River, including Panola, Shelby, San Augustine, 511-3 Sabine, Jasper, Newton, and Orange counties. One member of the 511-4 board must reside within a county situated wholly or partially 511-5 within the watershed of the Sabine River. 511-6 (d) The directors shall hold office after their appointment 511-7 and qualification until their successors are appointed and have 511-8 qualified. 511-9 (e) A vacancy on the board is filled by the governor, in the 511-10 manner provided by this section, for the unexpired term. 511-11 (f) Within 15 days after appointment, a director shall 511-12 qualify by taking the official oath and filing a good and 511-13 sufficient bond with the secretary of state in the amount of 511-14 $1,000, payable to the authority and conditioned on the faithful 511-15 performance of official duties of the director. The bond is 511-16 subject to approval by the secretary of state. 511-17 Sec. 270.005. OFFICERS; VOTING REQUIREMENTS; WARRANTS. 511-18 (a) The board shall elect from among its members a president, vice 511-19 president, secretary, and secretary pro tempore. 511-20 (b) Five directors constitute a quorum at any meeting, and a 511-21 concurrence of a majority of those present is sufficient in all 511-22 matters pertaining to the business of the authority, except that 511-23 the letting of construction contracts and the authorization of the 511-24 issuance of bonds require the concurrence of five directors. 511-25 (c) Warrants for the payment of money may be drawn and 511-26 signed by two officers or employees designated by resolution 512-1 entered in the minutes of the board when such accounts have been 512-2 contracted and ordered paid by the board. 512-3 Sec. 270.006. OFFICER AND EMPLOYEE BONDS. The board shall 512-4 require an officer or employee who collects, pays, or handles any 512-5 funds of the authority to furnish good and sufficient bond, with a 512-6 duly authorized surety company, payable to the authority, in an 512-7 amount determined by the board to be sufficient to safeguard the 512-8 authority. The bond shall be conditioned on the faithful 512-9 performance of the person's duties and on the person's accounting 512-10 for all funds and property of the authority coming into the 512-11 person's hands. 512-12 Sec. 270.007. OFFICERS; MEETINGS. (a) The president is the 512-13 chief executive officer of the authority and presides at board 512-14 meetings. The vice president acts as president if the president is 512-15 absent or disabled. 512-16 (b) The secretary is responsible for keeping the records and 512-17 books of the authority. The secretary pro tempore acts as 512-18 secretary if the secretary is absent or disabled. 512-19 (c) The board shall hold regular meetings at times set by 512-20 the board and may hold special meetings when required by the 512-21 business of the authority. 512-22 Sec. 270.008. DIRECTOR FEES. A director is entitled to 512-23 receive a fee not to exceed $100 for each day of service necessary 512-24 to discharge the director's duties, plus actual expenses, provided 512-25 the fee and expenses are authorized by vote of the board. The 512-26 directors must file with the secretary a statement showing the 513-1 amount due each month, or as soon after that month as practicable, 513-2 before a check is issued. 513-3 Sec. 270.009. RECORDS; AUTHORITY OFFICE. The board shall 513-4 keep a true and full account of all its meetings and proceedings 513-5 and maintain its records in a secure manner. The records are the 513-6 property of the authority and are subject to public inspection. A 513-7 regular office shall be established and maintained within the 513-8 authority for conducting the authority's business. 513-9 Sec. 270.010. ACCOUNT RECORD; AUDIT. The authority shall 513-10 keep a complete book of accounts. The authority's fiscal accounts 513-11 and records shall be audited annually in accordance with Section 513-12 49.191. 513-13 Sec. 270.011. DEPOSITORIES. (a) The board shall annually 513-14 select a depository or depositories for the authority. 513-15 (b) Funds of the authority shall be deposited in a 513-16 depository selected under Subsection (a). 513-17 (c) The board may allocate authority funds between 513-18 depositories or accounts maintained in a depository subject only to 513-19 the duty imposed on the board by statute to invest the funds so as 513-20 to obtain the highest rate of return consistent with safety. 513-21 (d) Subsection (b) does not prohibit the withdrawal of 513-22 authority funds after deposit in order to invest the funds in 513-23 fulfillment of the duty imposed on the board by statute to invest 513-24 the funds so as to obtain the highest rate of return consistent 513-25 with safety. 513-26 Sec. 270.012. INVESTMENT OF FUNDS. (a) Funds of the 514-1 authority shall be invested and reinvested in accordance with: 514-2 (1) Chapter 2256, Government Code; or 514-3 (2) the provisions of the authority's bond orders and 514-4 agreements, as applicable. 514-5 (b) The authority shall comply with Chapter 2257, Government 514-6 Code, to the extent applicable. 514-7 Sec. 270.013. MANAGER; EMPLOYEES. (a) The board may employ 514-8 a manager for the authority and may delegate to the manager full 514-9 authority to manage and operate the affairs of the authority 514-10 subject only to orders of the board. The manager's compensation 514-11 shall be determined by the board. 514-12 (b) The terms of employment and compensation of all 514-13 authority employees shall be determined by the board. 514-14 Sec. 270.014. SURETY BONDS. (a) All bonds required to be 514-15 given by officers and employees of the authority shall be executed 514-16 by a surety company authorized to do business in this state. The 514-17 authority may pay the premiums on the bonds. 514-18 (b) The authority may maintain a blanket surety bond to 514-19 cover the directors of the authority. The bond must be in the 514-20 amount of at least $1,000 per director. If the authority maintains 514-21 a blanket surety bond under this subsection, a director is not 514-22 required to file a surety bond with the secretary of state as 514-23 provided by Section 270.004. 514-24 Sec. 270.015. CONFLICT OF INTEREST; PENALTY. (a) A 514-25 director, engineer, or employee of the authority, either for the 514-26 person or as agent for anyone else, may not benefit directly or 515-1 indirectly by any sale, purchase, or contract entered into by the 515-2 board. If such a person, directly or indirectly, becomes 515-3 interested in such a contract, sale, or purchase, the person is 515-4 guilty of a misdemeanor and on conviction shall be punished by a 515-5 fine not to exceed $1,000, by confinement in the county jail for 515-6 not less than six months or more than one year, or by both fine and 515-7 imprisonment. 515-8 (b) In the purchase or sale of any realty bought or sold by 515-9 the authority from or to any director, engineer, or employee of the 515-10 authority, the value of the property shall be set by a board of 515-11 three disinterested citizens who are residents of the county in 515-12 which the property lies, who shall be appointed by the district 515-13 judge of the county. 515-14 Sec. 270.016. JOINT ACTIONS. A drainage, conservation, 515-15 reclamation, or other district previously created by the state with 515-16 powers provided in Section 59, Article XVI, or Section 52, Article 515-17 III, Texas Constitution, shall have the authority, power, and right 515-18 to coordinate its plans with the authority and shall have full 515-19 authority, power, and right to enter into joint undertakings for 515-20 the purposes for which the districts are created; provided, 515-21 however, that all such acts must be approved by a majority of the 515-22 board of each district involved. 515-23 Sec. 270.017. POWERS AND DUTIES. (a) The authority may 515-24 control and employ the waters of the Sabine River and its 515-25 tributaries within the state, including the storm waters and 515-26 floodwaters, for the conservation and beneficial use of the waters, 516-1 as provided by Chapters 11, 12, and 49 in the manner and for the 516-2 purposes provided by this section. 516-3 (b) The authority may provide through practical and legal 516-4 means for the control and coordination of the regulation of the 516-5 waters of the Sabine River and its tributaries. 516-6 (c) The authority may provide by adequate organization and 516-7 administration for the preservation of the equitable rights of the 516-8 people of the different sections of the watershed area in the 516-9 beneficial use of the waters of the Sabine River and its 516-10 tributaries. 516-11 (d) The authority may provide for storing, controlling, and 516-12 conserving the waters of the Sabine River and its tributaries 516-13 within and outside the authority in order to prevent the escape of 516-14 any of the waters without the maximum of public service, prevent 516-15 the devastation of lands from recurrent overflows, and protect life 516-16 and property in the authority from uncontrolled floodwaters. 516-17 (e) The authority may take actions necessary to comply with 516-18 laws, rules, and regulations of this state and the United States 516-19 relating to the protection of the environment and may borrow money, 516-20 accept grants, and enter into agreements with this state and the 516-21 United States to carry out these actions. If there is any conflict 516-22 between the provisions of this chapter and any law, rule, or 516-23 regulation of this state or the United States, the provisions of 516-24 this chapter prevail unless superseded by federal law. 516-25 (f) The authority may provide for the conservation of the 516-26 waters of the Sabine River and its tributaries essential for the 517-1 domestic uses of the people of the authority, including all 517-2 necessary water supplies for cities and towns. 517-3 (g) The authority may provide for the irrigation of lands 517-4 within the state where irrigation is required for agricultural 517-5 purposes or is considered helpful for more profitable agricultural 517-6 production and may provide for the equitable distribution of the 517-7 waters to the regional potential requirements for all beneficial 517-8 uses. All plans and works provided by the authority or authorized 517-9 by the authority shall give primary consideration to the necessary 517-10 and potential needs for water. The sale of water by the authority 517-11 and the compensation charged for water shall be subject to 517-12 regulation by the commission, on its own initiative or on the 517-13 complaint of any user of the water, but such regulation shall be 517-14 subject to the requirements of Section 270.019. 517-15 (h) The authority may provide for the encouragement and 517-16 development of drainage systems and provisions for drainage systems 517-17 and for the drainage of lands in the watershed of the Sabine River 517-18 and its tributaries needed for profitable agricultural production 517-19 and the drainage of other lands in the watershed area of the 517-20 authority requiring drainage for the most advantageous use. 517-21 (i) The authority may provide for the conservation of all 517-22 soils against destructive erosion and prevent the increased dangers 517-23 caused by destructive soil erosion. 517-24 (j) The authority may control and make water available for 517-25 use in the development of commercial and industrial enterprises in 517-26 all sections of the authority, may improve the Sabine River for 518-1 navigation, may construct or otherwise acquire and operate 518-2 navigation facilities and ports, and may enter into contracts with 518-3 the United States government with respect to those purposes. 518-4 (k) The authority may provide for the control, storage, and 518-5 employment of water under its control in the development and 518-6 distribution of hydroelectric power, where such use may be 518-7 economically coordinated with other and superior uses and 518-8 subordinated to the uses declared by law to be superior. 518-9 (l) The authority may provide for all purposes for which 518-10 floodwaters and storm waters, when controlled and conserved, may be 518-11 utilized in the performance of useful service as contemplated and 518-12 authorized by the provisions of the constitution and the public 518-13 policy it declares. 518-14 (m) The authority may purchase and construct all works 518-15 necessary or convenient for the exercise of the powers and the 518-16 accomplishment of the purposes specified in this chapter and may 518-17 purchase or otherwise acquire all real and personal property 518-18 necessary or convenient for carrying out those purposes. 518-19 Sec. 270.018. EMINENT DOMAIN. (a) The right of eminent 518-20 domain is expressly conferred on the authority to enable it to 518-21 acquire the fee simple title to, or the easement or right-of-way 518-22 over and through, any and all lands, water, or lands under water, 518-23 private or public, within and outside the authority, which in the 518-24 judgment of the board is necessary or convenient to carry out any 518-25 of the purposes and powers conferred on the authority by this 518-26 chapter; provided, however, that as against persons, firms, and 519-1 corporations, or their receivers or trustees, who have the power of 519-2 eminent domain, the fee title may not be condemned, and the 519-3 authority may condemn only an easement. 519-4 (b) All condemnation proceedings shall be under the 519-5 direction of the board and in the name of the authority, and the 519-6 assessment of damages and all procedure with reference to 519-7 condemnation, appeal, and payment shall be in conformity with 519-8 Chapter 21, Property Code. 519-9 Sec. 270.019. FEES AND CHARGES. The board shall prescribe 519-10 fees and charges to be collected for the use of water, water 519-11 connections, hydroelectric service, or other service that are 519-12 reasonable and equitable and sufficient to produce revenues 519-13 adequate to pay: 519-14 (1) all expenses necessary for the operation and 519-15 maintenance of the improvements and facilities of the authority, 519-16 including the cost of the acquisition of properties and materials 519-17 necessary to maintain the improvements and facilities in good 519-18 condition and to operate them efficiently, necessary wages and 519-19 salaries of the authority, and other expenses reasonably necessary 519-20 to the efficient operation of the improvements and facilities; 519-21 (2) the annual or semiannual interest as it becomes 519-22 due on bonds issued under this chapter that are payable out of the 519-23 revenues of the improvements and facilities; and 519-24 (3) the amount required to be paid annually into the 519-25 sinking fund for the payment of any bonds issued under this chapter 519-26 that are payable out of the revenues of the improvements and 520-1 facilities and the amount required to be paid into the reserve and 520-2 other funds under the resolution authorizing the issuance of the 520-3 bonds. 520-4 Sec. 270.020. EMPLOYEES. The authority through its board 520-5 may employ managers, engineers, attorneys, and all employees 520-6 necessary to construct, operate, and maintain the improvements and 520-7 facilities of the authority and to carry out the provisions of this 520-8 chapter, and may pay reasonable compensation set by the board for 520-9 such services. 520-10 Sec. 270.021. CONTRACTS. (a) The authority may make and 520-11 enter into contracts, leases, and agreements necessary or 520-12 convenient to carry the powers granted by this chapter. 520-13 (b) The contracts, leases, and agreements may be entered 520-14 into with any person, real or artificial; any corporation, 520-15 municipal, public or private; any government or governmental 520-16 agency, including the United States government, the State of Texas, 520-17 or the State of Louisiana, or any public or private corporation or 520-18 entity created by or under the laws of the State of Louisiana. 520-19 (c) The authority may contract with a person, corporation, 520-20 or entity described by Subsection (b) for the joint construction, 520-21 operation, or both construction and operation of facilities 520-22 authorized to be operated or constructed by the authority. 520-23 (d) All such contracts, leases, and agreements authorized by 520-24 this section must be approved by resolution of the board, executed 520-25 by the president or vice president, and attested by the secretary 520-26 or secretary pro tempore. 521-1 Sec. 270.022. RIGHT TO SUE. The authority may sue and be 521-2 sued in its own name. 521-3 Sec. 270.023. APPROVAL OF CERTAIN WORKS. Before the 521-4 authority establishes a diversion point, or constructs canals, 521-5 pumping plants, and other waterworks, the authority must present 521-6 plans and specifications for the project to the commission for 521-7 approval. 521-8 Sec. 270.024. ANNUITY CONTRACTS. The authority may enter 521-9 into agreements with its employees for the purchase of annuities 521-10 for its employees as authorized by Section 403(b), Internal Revenue 521-11 Code of 1986, as amended, and may effect reductions in the salary 521-12 of participants when authorized in writing and apply the amount of 521-13 the reductions to the purchase of annuity contracts, the exclusive 521-14 control of which will vest in the participants. 521-15 Sec. 270.025. RETIREMENT BENEFITS. The authority may 521-16 establish a system of retirement benefits or other benefits for its 521-17 employees, including a pension or other retirement plan as set 521-18 forth in the Internal Revenue Code of 1986, as amended. 521-19 Sec. 270.026. COMMISSION SUPERVISION. The authority is 521-20 subject to the continuing rights of supervision by the commission. 521-21 The commission may approve, or refuse to approve, the adequacy of 521-22 any plan for flood control or conservation improvement purposes 521-23 devised by the authority for the achievement of the plans and 521-24 purposes intended in the creation of the authority and which plans 521-25 contemplate improvements supervised by the commission under the 521-26 provisions of the general laws. 522-1 Sec. 270.027. ADDITIONAL POWERS. (a) The authority has and 522-2 may exercise such functions, powers, authority, rights, and duties 522-3 necessary to accomplish the purposes for which the authority is 522-4 created, including investigating, planning, acquiring, 522-5 constructing, maintaining, and operating all necessary properties, 522-6 lands, rights, tenements, easements, improvements, reservoirs, 522-7 dams, canals, laterals, plants, works, and facilities, including 522-8 the acquisition within and outside the authority of lands, 522-9 rights-of-way, water rights, and all other properties, tenements, 522-10 and easements, and other rights incident, helpful to, or in aid of 522-11 carrying out the purposes of the authority as provided by this 522-12 chapter. 522-13 (b) This chapter shall be liberally construed to accomplish 522-14 the purposes of the authority. 522-15 Sec. 270.028. ACCEPTANCE OF GRANTS; APPROVAL OF CONTRACTS. 522-16 (a) The board may accept grants and gratuities in any form for the 522-17 purpose of promoting, establishing, and accomplishing the 522-18 objectives provided by this chapter. Grants and gratuities shall 522-19 be strictly accounted for and shall be subject to the same rules, 522-20 regulations, and audits by the state auditor as other funds handled 522-21 or disbursed by the board. 522-22 (b) Any contract or agreement entered into or any commitment 522-23 made by and between the authority or any of its agents or 522-24 representatives and the federal government or any of its agents or 522-25 representatives involving the sovereign rights of the State of 522-26 Texas in the control, use, disposition, storage, or sale of the 523-1 water of the Sabine River or its tributaries, or involving the 523-2 control, management, or use of any facilities, properties, or 523-3 improvements constructed on the Sabine River or its tributaries, 523-4 shall be submitted to the attorney general for approval before 523-5 becoming an obligation of the authority. Nothing in this section 523-6 shall preclude compliance by the authority with federal laws in 523-7 existence on May 3, 1949, or with any compact after that date by 523-8 and between the State of Texas, the federal government, and the 523-9 State of Louisiana, but any agreement, contract, or commitment 523-10 based on or involving any compact promulgated after May 3, 1949, 523-11 between the State of Texas, the federal government, and the State 523-12 of Louisiana shall be submitted to the attorney general for 523-13 approval. 523-14 Sec. 270.029. ADDITIONAL SPECIFIC POWERS. (a) In addition 523-15 to all other powers granted by this chapter or by any other 523-16 provision of law, the authority is authorized to undertake and 523-17 carry out any activities and to purchase, construct, acquire, own, 523-18 operate, maintain, repair, improve, or extend, inside and outside 523-19 its boundaries, all works, improvements, facilities, plants, 523-20 equipment, and appliances incident, helpful, or necessary to: 523-21 (1) provide for the control, storage, preservation, 523-22 transmission, treatment, distribution, and use of storm water and 523-23 floodwater and the water of rivers and streams for irrigation, 523-24 power (whether hydroelectric, steam-generated, or nuclear), and all 523-25 other beneficial purposes; 523-26 (2) supply water for municipal, domestic, power 524-1 (whether hydroelectric, steam-generated, or nuclear), industrial, 524-2 irrigation, oil flooding, mining, agricultural, and commercial uses 524-3 and purposes and all other beneficial uses and purposes; 524-4 (3) collect, transport, process, treat, dispose of, 524-5 and control all municipal, domestic, industrial, or communal water 524-6 and solid waste pollution, whether in fluid, solid, or composite 524-7 state; 524-8 (4) reclaim and provide drainage and drainage systems 524-9 for lands; 524-10 (5) provide for the navigation of coastal and inland 524-11 waters and provide port facilities; or 524-12 (6) establish or otherwise provide for public parks 524-13 and recreation facilities. 524-14 (b) All of the purposes provided in Subsection (a) are for 524-15 the conservation and development of the natural resources of the 524-16 state within the meaning of Section 59, Article XVI, Texas 524-17 Constitution. 524-18 Sec. 270.030. CHARGES, FEES, AND RENTALS FOR FACILITY OR 524-19 SERVICE. The authority may adopt, enforce, and collect all 524-20 necessary charges, fees, or rentals for providing any authority 524-21 facility or service and may require a deposit for any service or 524-22 facility furnished, and the authority may or may not provide that 524-23 the deposit will bear interest. The authority may discontinue a 524-24 facility or service to prevent an abuse or enforce payment of an 524-25 unpaid charge, fee, or rental due the authority. 524-26 Sec. 270.031. RULES AND REGULATIONS. (a) The authority may 525-1 adopt and enforce reasonable rules and regulations to: 525-2 (1) secure and maintain safe, sanitary, and adequate 525-3 plumbing installations, connections, and appurtenances as 525-4 subsidiary parts of its sanitary sewer facilities; 525-5 (2) preserve the sanitary condition of all water 525-6 controlled by the authority; 525-7 (3) prevent waste or the unauthorized use of water 525-8 controlled by the authority; and 525-9 (4) regulate privileges on any land or easement owned 525-10 or controlled by the authority. 525-11 (b) The board shall publish once a week for two consecutive 525-12 weeks a substantive statement of a proposed rule or regulation and 525-13 the penalty for its violation in one or more newspapers with 525-14 general circulation in the area in which the rule or regulation is 525-15 to be effective. The substantive statement must be condensed as 525-16 far as possible to explain the purpose to be accomplished or the 525-17 act forbidden by the rule or regulation. The notice must advise 525-18 that breach of the rule or regulation will subject the violator to 525-19 a penalty and that the full text of the rule or regulation is on 525-20 file in the principal office of the authority where it may be read 525-21 by any interested person. Any number of rules or regulations may 525-22 be included in one notice. 525-23 (c) The penalty for violation of a rule or regulation is not 525-24 effective and enforceable until five days after the last 525-25 publication of the notice. Five days after the last publication, 525-26 the published rule or regulation shall be in effect, and ignorance 526-1 of it is not a defense to a prosecution for the enforcement of the 526-2 penalty. 526-3 (d) The board may set a reasonable penalty for the breach of 526-4 a rule or regulation of the authority. A penalty shall not exceed 526-5 a fine of more than $200. The penalty shall be in addition to any 526-6 other penalties and remedies provided by the laws of this state and 526-7 may be enforced by complaints filed in the appropriate court of 526-8 jurisdiction in the county in which the authority's principal 526-9 office is located or in the county in which the violation is 526-10 alleged to have occurred. 526-11 (e) After the publication required by Subsection (b), a rule 526-12 or regulation adopted by the authority shall be recognized by the 526-13 courts as if it were a penal ordinance of a city. 526-14 Sec. 270.032. ACQUISITION OF PROPERTY; ADDITIONAL PROVISIONS 526-15 REGARDING EMINENT DOMAIN. (a) The authority may acquire, by 526-16 purchase, lease, gift, or condemnation, any land, easements, or 526-17 other property, or any interest in land, easements, or other 526-18 property, within or outside the authority, for any purpose or 526-19 function authorized by this chapter. 526-20 (b) The authority may elect to condemn either the fee simple 526-21 title or an easement or other interest only, notwithstanding any 526-22 other provisions of this chapter. The right of eminent domain 526-23 shall be exercised by the authority in the manner provided by 526-24 Chapter 21, Property Code. The authority is a water improvement 526-25 district within the meaning of that chapter. The proceedings shall 526-26 be instituted under the direction of the board and in the name of 527-1 the authority. If the authority, in the exercise of the power of 527-2 eminent domain or power of relocation or any other power, makes 527-3 necessary the relocation, raising, rerouting, changing the grade, 527-4 or altering the construction of any highway, railroad, electric 527-5 transmission line, telephone or telegraph properties and 527-6 facilities, or pipeline, all necessary relocations, raising, 527-7 rerouting, changing the grade, or alteration of construction shall 527-8 be accomplished at the sole expense of the authority. 527-9 Sec. 270.033. CONTRACTS WITH AGENCIES AND POLITICAL 527-10 SUBDIVISIONS. The authority may contract, on the terms and 527-11 conditions as the parties may agree, with all cities, public 527-12 agencies, and other political subdivisions, including the United 527-13 States government and any of its agencies and the states of Texas 527-14 and Louisiana and any of their agencies, with respect to any power, 527-15 function, or duty of the authority. 527-16 Sec. 270.034. APPLICATION OF REGIONAL WASTE DISPOSAL ACT. 527-17 (a) The authority is a district under Chapter 30, and all the 527-18 provisions of that chapter are applicable to the authority except 527-19 to the extent of any conflict with this chapter, in which case this 527-20 chapter shall prevail. 527-21 (b) A city, public agency, or other political subdivision 527-22 may contract with the authority in any manner authorized by Chapter 527-23 30, provided, however, that the city, public agency, or other 527-24 political subdivision may execute contracts with the authority and 527-25 may determine, agree, and pledge that payments under the contract 527-26 shall be payable from the source or sources described in Section 528-1 30.030(c), subject only to the authorization of the contract, 528-2 pledge, and payments by a two-thirds vote of the governing board of 528-3 the city, public agency, or political subdivision. 528-4 (c) The authority and all cities, public agencies, and other 528-5 political subdivisions shall have all the rights, powers, and 528-6 authority with respect to the control, storage, preservation, 528-7 transmission, treatment, and disposition of storm water and 528-8 floodwater, and the water of rivers and streams, and with respect 528-9 to any other power, function, or activity of the authority granted, 528-10 permitted, and authorized to districts and public agencies by 528-11 Chapter 30, with respect to waste, waste disposal systems, and 528-12 treatment facilities. Contracts made pursuant to this subsection 528-13 are subject to the provisions of Subsection (b). 528-14 Sec. 270.035. CONTRACT CHARGES. All cities, public 528-15 agencies, and other political subdivisions may set, charge, and 528-16 collect fees, rates, charges, rentals, and other amounts for any 528-17 service or facilities provided pursuant to or in connection with 528-18 any contract with the authority and may pledge amounts sufficient 528-19 to make all payments required under the contract. 528-20 Sec. 270.036. BONDS. (a) For the purpose of providing 528-21 funds to acquire, purchase, construct, improve, enlarge, or equip 528-22 any property, buildings, structures, or other facilities for any 528-23 purpose or power authorized by law, the board may issue revenue 528-24 bonds from time to time and in one or more issues or series 528-25 pursuant to this section. 528-26 (b) The bonds may be payable from and secured by liens on 529-1 and pledges of all or any part of the revenues, income, or receipts 529-2 derived by the authority from its ownership or operation of the 529-3 property, buildings, structures, or facilities or any other 529-4 resources of the authority, including the proceeds or revenues from 529-5 contracts with any person, firm, corporation, city, public agency, 529-6 or other political subdivision. 529-7 (c) The bonds must be issued to mature serially or otherwise 529-8 within not to exceed 50 years, and provision may be made for the 529-9 subsequent issuance of additional parity bonds, or subordinate lien 529-10 bonds, under any terms or conditions that may be provided in the 529-11 resolution authorizing the issuance of the bonds. 529-12 (d) The bonds, and any interest coupons appertaining to the 529-13 bonds, are negotiable instruments within the meaning and for all 529-14 purposes of the Business & Commerce Code, provided, however, that 529-15 the bonds may be issued registrable as to principal alone or as to 529-16 both principal and interest. 529-17 (e) The bonds shall be executed and may be made redeemable 529-18 before maturity, may be issued in the form, denominations, and 529-19 manner and under the terms, conditions, and details, may be sold in 529-20 the manner, at the price, and under the terms, and shall bear 529-21 interest at the rates as provided in the resolution authorizing the 529-22 issuance of the bonds. If provided in the bond resolution, the 529-23 proceeds from the sale of the bonds may be used for paying interest 529-24 on the bonds during the period of the acquisition or construction 529-25 of facilities to be provided through the issuance of the bonds, for 529-26 paying expenses of operation and maintenance of facilities, for 530-1 creating a reserve fund for the payment of the principal of and 530-2 interest on the bonds, and for creating other funds, and the 530-3 proceeds from the sale of the bonds may be placed on time deposit 530-4 or invested until needed, to the extent and in the manner provided 530-5 in the bond resolution. 530-6 (f) The authority may pledge all or part of its revenues, 530-7 income, or receipts from fees, rentals, rates, charges, contract 530-8 proceeds or payments, or other resources to the payment of the 530-9 bonds, including the payment of principal, interest, and other 530-10 amounts required or permitted in connection with the bonds. The 530-11 pledged fees, rentals, rates, charges, proceeds, or payments shall 530-12 be set and collected in amounts that will be at a minimum 530-13 sufficient, together with other pledged resources, to provide for 530-14 all payments of principal, interest, and other amounts required in 530-15 connection with the bonds and, to the extent required by the 530-16 resolution authorizing the issuance of the bonds, to provide for 530-17 the payment of expenses in connection with the bonds and for the 530-18 operation, maintenance, and other expenses in connection with the 530-19 facilities. 530-20 (g) The bonds may be additionally secured by mortgages or 530-21 deeds of trust on real property owned or acquired by the authority, 530-22 and by chattel mortgages or liens on personal property appurtenant 530-23 to the real property, and the board may authorize the execution of 530-24 trust indentures, mortgages, deeds of trust, or other forms of 530-25 encumbrances to evidence same. 530-26 (h) The authority may pledge to the payment of the bonds all 531-1 or part of any grant, donation, revenues, or income received or to 531-2 be received from the United States government or any other public 531-3 or private source, whether pursuant to an agreement or otherwise. 531-4 (i) Revenue bonds issued pursuant to this section may be 531-5 refunded as provided by this section or Section 270.040, and the 531-6 bonds may be refunded or otherwise refinanced by the issuance of 531-7 refunding bonds for that purpose, under the terms, conditions, and 531-8 details, and with the security and pledges as determined by 531-9 resolution of the board. All pertinent and appropriate provisions 531-10 of this chapter apply to refunding bonds, which may be issued in 531-11 the manner provided for other bonds authorized under this section. 531-12 Refunding bonds may be sold for cash and delivered in amounts 531-13 necessary to pay the principal, interest, and redemption premium, 531-14 if any, of bonds to be refunded, at maturity or on any redemption 531-15 date; or the refunding bonds may be issued to be exchanged for the 531-16 bonds being refunded, in which case the comptroller shall register 531-17 the refunding bonds and deliver them to the holder or holders of 531-18 the bonds being refunded, in accordance with the provisions of the 531-19 resolution authorizing the refunding bonds. The exchange may be 531-20 made in one delivery or in several installment deliveries. Bonds 531-21 issued at any time by the authority may also be refunded in the 531-22 manner provided by any other applicable law. 531-23 Sec. 270.037. BOND APPROVAL AND REGISTRATION. (a) Bonds 531-24 issued pursuant to this chapter and the appropriate proceedings 531-25 authorizing their issuance shall be submitted to the attorney 531-26 general for examination. If the bonds recite that they are secured 532-1 by a pledge of revenues of any contract, a copy of the contract and 532-2 the proceedings relating to the contract shall be submitted to the 532-3 attorney general. If the attorney general finds that the bonds 532-4 have been authorized and that any such contract has been made in 532-5 accordance with law, the attorney general shall approve the bonds 532-6 and the contract and the bonds shall be registered by the 532-7 comptroller. 532-8 (b) After approval and registration the bonds and the 532-9 contract, if any, are incontestable in any court or other forum, 532-10 for any reason, and are valid and binding obligations in accordance 532-11 with their terms for all purposes. 532-12 Sec. 270.038. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 532-13 DEPOSITS. Bonds issued pursuant to this chapter are legal and 532-14 authorized investments for all banks, trust companies, building and 532-15 loan associations, savings and loan associations, insurance 532-16 companies of all kinds and types, fiduciaries, trustees, and 532-17 guardians and for all interest and sinking funds and other public 532-18 funds of the state and all agencies, subdivisions, and 532-19 instrumentalities of the state, including counties, cities, towns, 532-20 villages, school districts, and all other kinds and types of 532-21 districts, public agencies, and bodies politic. The bonds are 532-22 eligible and lawful security for deposits of public funds of the 532-23 state and all agencies, subdivisions, and instrumentalities of the 532-24 state, including counties, cities, towns, villages, school 532-25 districts, and all other kinds and types of districts, public 532-26 agencies, and bodies politic, to the extent of the face value of 533-1 the bonds, when accompanied by any unmatured interest coupons. 533-2 Sec. 270.039. SOURCE OF AUTHORITY. The provisions of 533-3 Sections 270.029-270.038 are sufficient authority for the issuance 533-4 of bonds, the execution of contracts, and the performance by the 533-5 authority and by cities, public agencies, and other political 533-6 subdivisions of other acts and procedures authorized by those 533-7 provisions, regardless of any other provisions of this chapter and 533-8 without reference to any other provisions of law or any 533-9 restrictions or limitations contained in those provisions, except 533-10 as specifically provided by this subsection and Sections 533-11 270.029-270.038. To the extent of any conflict or inconsistency 533-12 between provisions of this section and Sections 270.029-270.038 and 533-13 any other provision of law, this section and Sections 533-14 270.029-270.038 prevail and control; provided, however, that the 533-15 authority and all cities, public agencies, and other political 533-16 subdivisions may use other provisions of this chapter or other laws 533-17 not in conflict with this section and Sections 270.029-270.038, to 533-18 the extent convenient or necessary to carry out any power or 533-19 authority, express or implied, granted by those sections. 533-20 Sec. 270.040. REFUNDING BONDS. (a) The authority may issue 533-21 refunding bonds for the purpose of refunding any outstanding bonds 533-22 authorized by this chapter and interest on the bonds. Refunding 533-23 bonds may be issued to refund more than one series of outstanding 533-24 bonds and may combine the pledges for the outstanding bonds for the 533-25 security of the refunding bonds, and the refunding bonds may be 533-26 secured by other or additional revenues. 534-1 (b) The provisions of this chapter with reference to the 534-2 issuance of other bonds and their approval by the attorney general 534-3 and the remedies of the holders are applicable to refunding bonds. 534-4 Refunding bonds shall be registered by the comptroller on surrender 534-5 and cancellation of the bonds to be refunded, but in lieu of 534-6 surrender and cancellation, the resolution authorizing the issuance 534-7 of the refunding bonds may provide that the bonds shall be sold and 534-8 the proceeds of the sale deposited in the bank where the original 534-9 bonds are payable, in which case the refunding bonds may be issued 534-10 in an amount sufficient to pay the interest on the original bonds 534-11 to their option date or maturity date and the comptroller shall 534-12 register the refunding bonds without concurrent surrender and 534-13 cancellation of the original bonds. 534-14 Sec. 270.041. DEED OF TRUST LIEN. (a) Bonds, including 534-15 refunding bonds, authorized by this chapter may be additionally 534-16 secured by a deed of trust lien on physical properties of the 534-17 authority and all franchises, easements, water rights and 534-18 appropriation permits, leases and contracts, and all rights 534-19 appurtenant to the properties, vesting in the trustee power to sell 534-20 the properties for payment of the indebtedness, power to operate 534-21 the properties, and all other powers and authority for the further 534-22 security of the bonds. 534-23 (b) The deed of trust may contain any provisions prescribed 534-24 by the board for the security of the bonds and the preservation of 534-25 the trust estate and may make provision for amendment or 534-26 modification of the deed of trust and the issuance of bonds to 535-1 replace lost or mutilated bonds. A purchaser under a sale under 535-2 the deed of trust shall be the owner of the dam or dams and the 535-3 other properties and facilities so purchased and shall have the 535-4 right to maintain and operate them. 535-5 Sec. 270.042. ADDITIONAL PROVISIONS REGARDING APPROVAL AND 535-6 REGISTRATION OF BONDS. (a) After any bonds are authorized by the 535-7 authority, the bonds and the record relating to their issuance 535-8 shall be submitted to the attorney general for examination as to 535-9 the validity of the bonds and the record. If the bonds recite that 535-10 they are secured by a pledge of the proceeds of a contract 535-11 previously made between the authority and a city or other 535-12 governmental agency or district, a copy of the contract and the 535-13 proceedings of the city or other governmental agency or district 535-14 authorizing the contract shall also be submitted to the attorney 535-15 general. If the bonds have been authorized and the contract has 535-16 been made in accordance with the constitution and laws of the 535-17 state, the attorney general shall approve the bonds and contract 535-18 and the bonds then shall be registered by the comptroller. 535-19 (b) After their approval and registration, the bonds and the 535-20 contract, if any, are valid and binding and are incontestable for 535-21 any cause. 535-22 Sec. 270.043. PROVISIONS REGARDING FURNISHING OF ELECTRICITY 535-23 AND OTHER AUTHORITY SERVICES. (a) The rates and charges for 535-24 electric power sold and the services rendered by the authority 535-25 shall be reasonable, nondiscriminatory, and just to the customers, 535-26 and all rates and charges that are unreasonable, discriminatory, or 536-1 unjust to customers are prohibited. 536-2 (b) The commission shall have the power to regulate and set 536-3 the rates and compensation to be charged by the authority for 536-4 electric energy and other services and to prescribe rules and 536-5 regulations under which electric energy is furnished. The 536-6 commission shall not set a rate or compensation that will yield 536-7 less than a fair rate of return on the fair value of the property 536-8 used and useful in generating electric energy and rendering other 536-9 service, but in no event shall the return exceed 10 percent per 536-10 year. 536-11 (c) When the authority proposes to enter into a contract for 536-12 the sale of electric energy, the contract shall be filed with the 536-13 commission for examination. On the filing of the contract, the 536-14 commission shall issue a notice to the parties by registered mail, 536-15 unless notice is waived, informing the parties of the time and 536-16 location of a hearing on the contract. If, following the hearing, 536-17 the commission finds that the contract or proposal is fair and 536-18 reasonable and not detrimental to the public interest, it shall 536-19 approve the contract or proposal. The action of the commission 536-20 pursuant to the hearing shall be conclusive unless an appeal is 536-21 taken. 536-22 (d) If a party is dissatisfied with the action of the 536-23 commission, the party may file a petition stating the party's 536-24 objections to the action in a district court of Travis County 536-25 against the commission as defendant. The findings of the 536-26 commission as to the facts, if supported by substantial evidence, 537-1 shall be conclusive. Appeals may be taken to the court of civil 537-2 appeals and may be removed to the supreme court as in other civil 537-3 causes. 537-4 (e) The commission may exercise its powers of regulation and 537-5 control on its own initiative or on complaint of any person 537-6 aggrieved. 537-7 Sec. 270.044. AUTHORITY AS WATER CONTROL AND IMPROVEMENT 537-8 DISTRICT. The authority has all the powers conferred by general 537-9 laws on water control and improvement districts. In the event of a 537-10 conflict between the provisions of this chapter and the general 537-11 laws relating to water control and improvement districts or any 537-12 other general law, the provisions of this chapter shall prevail. 537-13 Sec. 270.045. ADDITIONAL PROVISIONS REGARDING BONDS AS 537-14 INVESTMENTS AND AS SECURITY FOR DEPOSITS. All bonds of the 537-15 authority are legal and authorized investments for banks, savings 537-16 banks, trust companies, building and loan associations, savings and 537-17 loan associations, insurance companies, fiduciaries, trustees, and 537-18 guardians and for the sinking funds of cities, towns, villages, 537-19 counties, school districts, or other political corporations or 537-20 subdivisions of the state. The bonds are eligible to secure the 537-21 deposit of all public funds of the state and all public funds of 537-22 cities, towns, villages, counties, school districts, or other 537-23 political corporations or subdivisions of the state, and the bonds 537-24 are lawful and sufficient security for the deposits to the extent 537-25 of their value if the bonds are accompanied by all unmatured 537-26 coupons. 538-1 Sec. 270.046. TAX EXEMPTION. The accomplishment of the 538-2 purposes stated in this chapter is for the benefit of the people of 538-3 the state and for the improvement of their properties and 538-4 industries, and the authority, in carrying out the purposes of this 538-5 chapter, will be performing an essential public function under the 538-6 constitution. The authority shall not be required to pay any tax 538-7 or assessment on the project or a part of the project, and the 538-8 bonds issued under this chapter and the transfer of and income from 538-9 the bonds, including the profits made on the sale of the bonds, 538-10 shall at all times be free from taxation within this state. 538-11 Sec. 270.047. ADDITIONAL PROVISIONS REGARDING AUTHORITY 538-12 REGULATIONS AND CONTRACTS. (a) The board may adopt and promulgate 538-13 all reasonable regulations to secure, maintain, and preserve the 538-14 sanitary condition of all water in and to flow into any reservoir 538-15 owned by the authority, to prevent the waste or unauthorized use of 538-16 water, and to regulate residence, hunting, fishing, boating, and 538-17 camping, and all recreational and business privileges, along or 538-18 around any such reservoir and the Sabine River and its tributaries 538-19 or on any body of land or easement owned or controlled by the 538-20 authority. 538-21 (b) The board may contract with responsible persons for the 538-22 construction and operation of toll bridges over the authority's 538-23 water or for ferry service on or over the authority's water, for a 538-24 period not to exceed 20 years in the case of a bridge and not to 538-25 exceed 10 years in the case of a ferry, setting reasonable 538-26 compensation to be charged for service by any such facility and 539-1 requiring adequate bond or bonds from contracting persons, 539-2 associations, or corporations, payable to the authority, in an 539-3 amount and conditioned as required in the judgment of the board. 539-4 The contracts may provide for forfeiture of the particular 539-5 franchise in case of a failure of the licensee to render adequate 539-6 public service. 539-7 (c) The authority may prescribe a reasonable penalty for the 539-8 breach of a regulation of the authority, not to exceed a fine of 539-9 $200 or imprisonment for 30 days, or both a fine and imprisonment. 539-10 The penalty shall be in addition to any other penalties provided by 539-11 the laws of the state and may be enforced by complaints filed in 539-12 the appropriate court of jurisdiction in the county in which the 539-13 violation occurred; provided, however, that no rule or regulation 539-14 that provides a penalty for a violation of the rule or regulation 539-15 shall be in effect, as to enforcement of the penalty, until five 539-16 days after the authority has caused a substantive statement of the 539-17 rule or regulation and the penalty for the violation to be 539-18 published, once a week for two consecutive weeks in the authority. 539-19 The statement to be published must be as condensed as is possible 539-20 to afford sufficient notice as to the act forbidden by the rule or 539-21 regulation. A single notice may embrace any number of regulations. 539-22 The notice must provide the information that breach of the 539-23 regulation or regulations will subject the violator to the 539-24 imposition of a penalty. The notice must also state that the full 539-25 text of the regulation or regulations is on file in the principal 539-26 office of the authority and may be read by any interested person. 540-1 Five days after the second publication of the notice, the 540-2 advertised regulation shall be in effect and ignorance of the 540-3 regulation shall not constitute a defense to a prosecution for the 540-4 enforcement of a penalty. After the required publication, the 540-5 rules and regulations authorized by this section shall judicially 540-6 be known to the courts and shall be considered of a nature similar 540-7 to a valid penal ordinance of a city of the state. 540-8 (d) The authority may employ and constitute its own peace 540-9 officers, and any such peace officer or any county peace officer 540-10 may make arrests when necessary to prevent or stop the commission 540-11 of an offense against the regulations of the authority, or against 540-12 the laws of the state, when the offense or threatened offense 540-13 occurs on any land, water, or easement owned or controlled by the 540-14 authority, or may make an arrest at any place in the case of an 540-15 offense involving injury or detriment to any property owned or 540-16 controlled by the authority. 540-17 Sec. 270.048. PARKS AND RECREATION FACILITIES. The 540-18 authority may establish or otherwise provide for public parks and 540-19 recreation facilities and may acquire land for such purposes. 540-20 CHAPTER 271. SAN ANTONIO RIVER AUTHORITY 540-21 Sec. 271.001. CREATION. (a) A conservation and reclamation 540-22 district to be known as the "San Antonio River Authority" is 540-23 created. The authority is a governmental agency, a municipality, 540-24 body politic and corporate. 540-25 (b) The authority is created under and is essential to 540-26 accomplish the purposes of Section 59, Article XVI, Texas 541-1 Constitution, including the construction, maintenance, and 541-2 operation of navigable canals or waterways authorized by this 541-3 chapter and the control of the waters of those parts of all rivers 541-4 and streams and their tributaries that are within the boundaries of 541-5 the authority. 541-6 Sec. 271.002. DEFINITIONS. In this chapter: 541-7 (1) "Authority" means the San Antonio River Authority. 541-8 (2) "Board" means the board of directors of the 541-9 authority. 541-10 (3) "Director" means a member of the board. 541-11 (4) "Federal" means the government of the United 541-12 States or its functions or subsidiary agencies. 541-13 (5) "Flood plain" means the area of the channel of a 541-14 river or stream and those portions of land abutting and adjacent to 541-15 the channel that are reasonably required to carry floodwaters. 541-16 (6) "Person" means an individual, partnership, 541-17 association, corporation, business trust, legal representative, or 541-18 receiver or any organized group of persons. 541-19 (7) "Professional services" means services rendered, 541-20 either individually or by firms, by accountants, attorneys, 541-21 engineers, surveyors, geologists, physicians, surgeons, laboratory 541-22 technicians, bond brokers, fiscal advisers, appraisers, 541-23 statisticians, and researchers and by such other vocations, 541-24 callings, occupations, or employments involving labor, skill, 541-25 education, special knowledge, and compensation or profit in which 541-26 the labor and skill involved are predominantly mental or 542-1 intellectual rather than physical or manual. 542-2 (8) "San Antonio River Basin" means all of the area 542-3 except Bandera, Real, and Kerr counties that has topographic 542-4 characteristics causing surface waters to flow into the San Antonio 542-5 River and its tributaries. 542-6 (9) "State" means or relates to the government of the 542-7 State of Texas or such of its functions and agencies as are 542-8 appropriate to accomplish the objectives of this chapter. 542-9 Sec. 271.003. BOUNDARIES OF THE AUTHORITY; FINDING OF 542-10 BENEFIT. (a) The authority includes all of the territory within 542-11 the Bexar, Wilson, Karnes, and Goliad counties. 542-12 (b) It is found and determined that all of the land included 542-13 in the authority will benefit from the exercise of the power 542-14 conferred by this chapter. 542-15 Sec. 271.004. POWERS AND DUTIES OF THE AUTHORITY. (a) The 542-16 authority has all of the powers of the state granted under Section 542-17 59, Article XVI, Texas Constitution, to effectuate the 542-18 construction, maintenance, and operation of navigable canals or 542-19 waterways, to effectuate flood control, to effectuate the 542-20 conservation and use for all beneficial purposes of groundwater, 542-21 storm waters, floodwaters, and unappropriated flow waters in the 542-22 authority, to effectuate irrigation, to effectuate soil 542-23 conservation, to effectuate sewage treatment, to effectuate 542-24 pollution prevention, to encourage and develop parks and 542-25 recreational facilities and to preserve fish, to effectuate 542-26 forestation and reforestation, and to do all things required for 543-1 those purposes, subject only to: 543-2 (1) declarations of policy by the legislature as to 543-3 the use of water; 543-4 (2) continuing supervision and control by the 543-5 commission and any board or agency that succeeds to its duties; 543-6 (3) the provisions of Section 11.024, prescribing the 543-7 priorities of uses for water; and 543-8 (4) water rights legally acquired by municipalities 543-9 and other users. 543-10 (b) Subject to the provisions of Subsection (a), the 543-11 authority shall exercise the powers, rights, privileges, and 543-12 functions provided by this section and Sections 271.005-271.015, in 543-13 the manner and for the purposes specified in those sections and in 543-14 this chapter, for the greatest practicable measure of conservation 543-15 and beneficial utilization of all groundwater, storm waters, 543-16 floodwaters, and unappropriated flow waters of the authority. 543-17 Sec. 271.005. NAVIGATION. (a) The authority may promote, 543-18 construct, maintain, and operate or may make practicable, promote, 543-19 aid, and encourage the construction, maintenance, and operation of 543-20 navigable canals or waterways, and all navigational systems or 543-21 facilities auxiliary to navigable canals or waterways, using the 543-22 natural bed and banks of the San Antonio River to its junction with 543-23 the Guadalupe River where practicable and from there traversing 543-24 such route as may be found by the authority to be most feasible and 543-25 practicable to connect with the Gulf Intracoastal Waterway or with 543-26 any new canal to be constructed or with any harbor at or near San 544-1 Antonio Bay or the Gulf of Mexico and also using such new 544-2 correlated artificial waterways, together with all locks and other 544-3 works, structures, and artificial facilities, as may be necessary 544-4 and convenient for the construction, maintenance, and operation of 544-5 the navigable canals or waterways and all navigational systems or 544-6 facilities auxiliary to them. 544-7 (b) The authority may construct or cause to be constructed 544-8 the system of artificial waterways, canals, locks, works, and other 544-9 facilities to connect the watershed area of the San Antonio River, 544-10 including navigation to or at a point near the city of San Antonio, 544-11 with the Gulf Intracoastal Waterway or with any new canal to be 544-12 constructed or with any harbor at or near San Antonio Bay or the 544-13 Gulf of Mexico. 544-14 (c) The authority may control, develop, store, and use the 544-15 natural flow and floodwaters of the San Antonio River and its 544-16 tributaries for the purpose of operating and maintaining the 544-17 navigable canals or waterways and all navigational systems or 544-18 facilities auxiliary to the canals and waterways; provided, 544-19 however, that the navigational use shall be subordinate to the 544-20 consumptive use of water, and navigation shall be incidental to the 544-21 consumptive use of water. 544-22 (d) In the case of the construction of the navigable canals 544-23 or waterways and all navigational systems or facilities auxiliary 544-24 to them by the federal government or otherwise, the authority may 544-25 construct, maintain, and operate lateral connecting canals and 544-26 turning basins to serve local needs, and may also provide, 545-1 construct, acquire, purchase, take over, lease from others, lease 545-2 to others, maintain, operate, develop, and regulate, or by 545-3 franchise control, wharves, docks, warehouses, grain elevators, 545-4 bunkering facilities, belt or terminal railroads, floating plants, 545-5 lighterage, towing facilities, and all other facilities incident to 545-6 or in aid of the efficient operation and development of the canals 545-7 or waterways and all navigational systems or facilities auxiliary 545-8 to them, and any ports incident to them, whether on land or on 545-9 water. 545-10 (e) If the construction or maintenance and operation of the 545-11 navigable canals or waterways and all navigational systems or 545-12 facilities auxiliary to the canals or waterways is taken over by 545-13 the federal government or any agency of the federal government, the 545-14 authority may make and enter into any contracts lawfully required 545-15 by the federal government, including assignments and transfers of 545-16 property and rights of property and easements and privileges and 545-17 all other lawful things and acts necessary and required to meet the 545-18 requirements of the federal government, or any agency of the 545-19 federal government, in taking over the construction or maintenance 545-20 and operation of the navigable canals or waterways and all 545-21 navigational systems or facilities auxiliary to the canals and 545-22 waterways. 545-23 (f) The authority may grant a franchise or right to any 545-24 person or body politic or corporate for the use of the navigable 545-25 canals or waterways and all navigational systems or facilities 545-26 auxiliary to the canals or waterways or any facility in aid of 546-1 navigation. A person or body politic or corporate may not provide, 546-2 maintain, or operate any facility in aid of navigation in any way 546-3 connected with the navigable canals or waterways and all 546-4 navigational systems or facilities auxiliary to the canals or 546-5 waterways and intended for use by the public within the meaning and 546-6 intent of this chapter, except by and under the franchise granted 546-7 by the authority in the form of an ordinance as provided by this 546-8 chapter. 546-9 (g) A franchise may be granted under Subsection (f) for a 546-10 term not to exceed 50 years. An ordinance granting the franchise: 546-11 (1) may contain provisions for the payment of 546-12 reasonable fees or other charges to be paid to the authority; and 546-13 (2) shall contain: 546-14 (A) provisions adequate to regulate the fees, 546-15 tolls, rates, or exactions to be demanded for the use of, or 546-16 service to be rendered by, any means or facility to be provided or 546-17 operated under the franchise, so that the terms will be uniform, 546-18 reasonable, and without discrimination against any person, both as 546-19 to charges and the conditions of use or service; and 546-20 (B) all provisions reasonably required to 546-21 procure service adequate to serve the public necessity and 546-22 convenience. 546-23 (h) The authority may grant a franchise for the design, 546-24 construction, repair, enlargement, alteration, maintenance, or 546-25 operation of, service from, or use of any facility to be provided 546-26 for use in aid of navigation on the navigable canals or waterways 547-1 and all navigational systems or facilities auxiliary to the canals 547-2 or waterways, whether on land or in or on water. 547-3 (i) In granting a franchise under this section, the 547-4 authority may require: 547-5 (1) uniform and adequate analytic accounting systems 547-6 and forms; 547-7 (2) periodic verified reports based on the accounting 547-8 system; 547-9 (3) audits by the authority; and 547-10 (4) other reasonable regulations designed to protect 547-11 the public. 547-12 (j) To procure observance of the conditions of a franchise 547-13 granted under this section and compliance with the rules and 547-14 regulations established by ordinance of the authority, to be 547-15 adopted as provided in this chapter, the ordinance may provide 547-16 reasonable and commensurate penalties set by general law, not to 547-17 exceed the limit for penalties provided by this chapter. 547-18 (k) Unless the franchise otherwise provides, the forfeiture 547-19 or suspension of a franchise granted under this chapter may be only 547-20 because of discrimination in rendering service, in affording use, 547-21 or in taking or demanding a toll, rate, or charge. Forfeiture or 547-22 suspension of a franchise granted under this section, unless 547-23 otherwise provided in the franchise, shall be on a decree of a 547-24 district court within the county in which the authority maintains 547-25 its general office. 547-26 (l) The authority may by ordinance establish rules necessary 548-1 or designed to protect the physical property owned by the 548-2 authority, or physical property owned or operated by another under 548-3 a franchise granted under this section, or to effect the safety or 548-4 efficient use of the property. In the ordinance the authority may 548-5 provide a reasonable and commensurate penalty for the violation of 548-6 a rule. The penalty, which shall be cumulative of other penalties 548-7 provided by general law, may not exceed the limit for penalties 548-8 provided by this chapter. 548-9 Sec. 271.006. FLOOD CONTROL AND FLOOD PLAIN MANAGEMENT. The 548-10 authority may prevent and aid in the prevention of damage to 548-11 persons and property by the overflow of rivers, streams, or 548-12 tributaries of rivers and streams within the authority, including 548-13 the study and designation of flood plains and their regulation. 548-14 Sec. 271.007. WATER CONSERVATION, STORAGE, PROCUREMENT, 548-15 DISTRIBUTION AND SUPPLY. (a) The authority may store and conserve 548-16 water for the greatest beneficial use, for standby service as well 548-17 as for the actual delivery of water. 548-18 (b) The authority may provide water for the development of 548-19 commercial and industrial enterprises within or outside the 548-20 authority. 548-21 (c) The authority may bring water into the boundaries of the 548-22 authority. 548-23 (d) The authority may construct, acquire, equip, acquire 548-24 storage rights at, and operate and maintain dams and reservoirs, 548-25 either within or outside the authority, in carrying out the powers 548-26 conferred on the authority, or may exercise such powers in 549-1 conjunction with others. 549-2 (e) The authority may contract for, operate, maintain, or 549-3 otherwise provide water supply lines and water purification and 549-4 water pumping systems and facilities either within or outside the 549-5 authority. 549-6 (f) The authority may execute contracts with municipalities 549-7 and others involving the construction of reservoirs, dams, water 549-8 supply lines, and water purification and pumping facilities and the 549-9 furnishing of water supply service substantially in the manner 549-10 provided by Section 402.020, Local Government Code, for districts 549-11 organized and created pursuant to Section 59, Article XVI, Texas 549-12 Constitution, extended so as to permit such contracts with 549-13 individuals, partnerships, and all classes of corporations and to 549-14 permit the inclusion of provisions for the operation, maintenance, 549-15 and ownership of such properties. The powers granted the authority 549-16 in this section are not to be construed as a limitation on the 549-17 powers, rights, privileges, and functions otherwise granted by this 549-18 chapter. 549-19 (g) The authority may acquire from the United States 549-20 government, through the secretary of the army or the secretary of 549-21 the interior or any of its officials authorized to make such 549-22 contracts, from the state or an agency of the state, or from any 549-23 privately financed reservoirs, unsold conservation storage capacity 549-24 at any dam within or outside the authority constructed or to be 549-25 constructed either by or with the assistance of the United States 549-26 government or the state, or both. The authority may acquire 550-1 additional conservation storage capacity that may be provided at 550-2 any such dam. 550-3 Sec. 271.008. IRRIGATION. The authority may provide water 550-4 for the irrigation of lands within and outside the authority, and 550-5 incident to that purpose may construct, operate, and maintain 550-6 supply lines and pumping systems and facilities either within or 550-7 outside the authority. 550-8 Sec. 271.009. SOIL CONSERVATION. (a) In furtherance of the 550-9 master plan provided for in Section 271.016, the authority may 550-10 provide for the conservation of soils and other surface resources 550-11 within the authority against destructive erosion, for the 550-12 prevention of the increased threat of flood caused by soil erosion, 550-13 and for the prevention of sedimentation and siltation of lands, 550-14 channels, and reservoirs, including the right either to act as 550-15 local sponsoring agent for upstream soil and water conservation and 550-16 flood prevention projects authorized by state or federal agencies 550-17 in conjunction with soil conservation districts or to aid and 550-18 supplement the work of such upstream soil and water conservation 550-19 and flood prevention projects. 550-20 (b) The authority may make arrangements satisfactory to the 550-21 secretary of agriculture of the United States for defraying costs 550-22 of operating and maintaining the projects described by Subsection 550-23 (a) in accordance with regulations promulgated by the secretary of 550-24 agriculture; provided, however, that any portion of the total 550-25 construction cost of any such project that is allocable to flood 550-26 control or soil conservation shall be paid for or financed by funds 551-1 that have their source in the county in which the project is 551-2 located. The funds may be of any kind or character except taxes 551-3 collected in accordance with the provisions of Sections 271.027 and 551-4 271.028. 551-5 Sec. 271.010. SEWAGE TREATMENT AND SOLID WASTE DISPOSAL. 551-6 (a) Except as provided by Subsection (b) as a necessary aid to the 551-7 conservation, control, preservation, purification, and distribution 551-8 of surface waters and groundwater within the authority, the 551-9 authority may construct, own, operate, maintain, or otherwise 551-10 provide within the San Antonio River Basin sewage gathering, 551-11 treatment, or disposal services, including solid waste disposal 551-12 services, may charge for those services, and may make contracts in 551-13 reference to those services with counties, municipalities, and 551-14 others. 551-15 (b) The authority may not exercise the powers granted by 551-16 this section within the boundaries of Kerr, Real, or Bandera 551-17 counties unless the commissioners court of the county or counties 551-18 has consented by a majority vote to the exercise of those powers 551-19 within the county or counties. 551-20 Sec. 271.011. POLLUTION PREVENTION. (a) The authority may 551-21 provide for the study, correcting, and control of both artificial 551-22 and natural pollution, including organic, inorganic, and thermal 551-23 pollution, of all groundwater or surface water within the San 551-24 Antonio River Basin. 551-25 (b) Except as provided by Subsection (c), the authority may 551-26 by ordinance promulgate rules and regulations with regard to 552-1 pollution, both artificial and natural, may police the authority to 552-2 enforce the rules and regulations, and may provide reasonable and 552-3 commensurate penalties for the violation of the rules and 552-4 regulations. The penalties, which shall be cumulative of any 552-5 penalties fixed by general law, may not exceed the limit for 552-6 penalties provided by this chapter. 552-7 (c) An ordinance enacted under this section may not be 552-8 promulgated in any county or counties outside the boundaries of the 552-9 authority. 552-10 Sec. 271.012. PARKS, RECREATIONAL FACILITIES, AND 552-11 PRESERVATION OF FISH. For the encouragement and development of 552-12 parks and recreational facilities and the preservation of fish, the 552-13 authority may acquire additional land adjoining any permanent work 552-14 of improvement constructed within the authority for the purpose of 552-15 developing parks or recreational facilities. The authority may 552-16 negotiate contracts with any county, municipality, municipal 552-17 corporation, person, firm, corporation, nonprofit organization, or 552-18 state or federal agency for the operation or maintenance of any 552-19 such park or recreational facility. The preservation of fish shall 552-20 be in accordance with rules and regulations, if any, prescribed by 552-21 the Parks and Wildlife Department. 552-22 Sec. 271.013. FORESTATION AND REFORESTATION. The authority 552-23 may forest and reforest and aid in the foresting and reforesting of 552-24 all areas within the authority. 552-25 Sec. 271.014. CONTRACTS. (a) The authority may make 552-26 contracts and execute instruments necessary or convenient to the 553-1 exercise of the powers, rights, privileges, and functions conferred 553-2 on it by this chapter. The contracts or instruments may be with 553-3 the United States and its agencies, with counties, cities, 553-4 municipal corporations, political subdivisions, and districts, and 553-5 with private persons, partnerships, associations, and corporations. 553-6 The authority shall make and execute the contracts and instruments 553-7 in accordance with the procedures provided by this section. 553-8 (b) Concerning any wholesale contract for the sale, 553-9 purchase, procurement, distribution, or supply of water or 553-10 conservation storage capacity or for the construction of a 553-11 navigable canal or waterway or any contract authorized by Section 553-12 411.003, Local Government Code, the manager shall publish a notice 553-13 describing the general nature of the contract once each week for 553-14 three consecutive weeks in a newspaper of general circulation in 553-15 each county in the authority within which the contract is to have 553-16 effect. The contract may be considered and acted on at the next 553-17 regular meeting of the board following the last date of publication 553-18 or, without further notice, at any meeting thereafter. The 553-19 affirmative vote of at least seven members of the board is required 553-20 for the approval of confirmation or ratification of the contract. 553-21 Of those seven affirmative votes, at least three affirmative votes 553-22 must be cast by directors from Bexar County, at least one 553-23 affirmative vote must be cast by a director from Wilson County, at 553-24 least one affirmative vote must be cast by a director from Karnes 553-25 County, and at least one affirmative vote must be cast by a 553-26 director from Goliad County. The authority may use any such 554-1 contract as the sole basis, or as a supplement to the basis, for 554-2 securing the authority's bonds. 554-3 (c) Concerning any construction, maintenance, operation or 554-4 repair contract, any contract for the purchase of material, 554-5 equipment, or supplies, or any contract for services other than 554-6 professional services, if the contract will require an estimated 554-7 expenditure of more than the maximum amount for which competitive 554-8 bidding is required by statute for any political subdivision of the 554-9 state or if the contract is for a term of two years or more, the 554-10 board, on the affirmative vote of a majority of a quorum present at 554-11 any regular or special meeting, shall award the contract to the 554-12 lowest and best bidder after publication of a notice to bidders 554-13 once each week for three consecutive weeks. The board by bylaw 554-14 shall promulgate the procedures for the publication of notice to 554-15 bidders and related procedures and may, within the limitations 554-16 provided by this section, from time to time prescribe the amount of 554-17 estimated expenditures to be subjected to competitive bidding. In 554-18 the event of an emergency, the authority may let such contracts as 554-19 are necessary to protect and preserve the public health and welfare 554-20 or the properties of the authority without such bidding procedures. 554-21 Members of the board shall be ineligible to submit such bids. Any 554-22 provision of this section to the contrary notwithstanding, the 554-23 authority may purchase surplus property from the United States by 554-24 negotiated contract and without the necessity of advertising for 554-25 bids. 554-26 Sec. 271.015. GENERAL POWERS AND DUTIES. (a) The authority 555-1 is vested with such title and right of control as the state has, or 555-2 may have, in, to, and concerning the natural bed and banks of the 555-3 San Antonio River in its entire length, and all of its tributaries 555-4 as are within the boundaries of the authority as defined by Section 555-5 271.003, and the authority is further vested with such title and 555-6 right of control as the state has, or may have, in, to, and 555-7 concerning the natural bed and banks of any other navigable stream 555-8 or tributary of such stream as may be situated within the 555-9 boundaries of the authority; which investment, however, shall be in 555-10 trust and to authorize the authority to make such uses or 555-11 disposition of such lands and rights and the proceeds, income, 555-12 revenues, or trading values of those lands and rights as in actual 555-13 experience may prove to be reasonably required for, or in aid of, 555-14 the accomplishment of the purposes of this chapter. 555-15 (b) The authority may make preliminary investigations and 555-16 surveys in the manner and for the purposes specified in Chapters 49 555-17 and 51, either independently at its own cost or jointly with 555-18 others, or may contribute to the cost of investigations and surveys 555-19 when done by another, in order to procure cooperation by the 555-20 government of the United States to the end that any project 555-21 lawfully within the purposes of this chapter may be approved for 555-22 construction as a federal project under such contractual terms and 555-23 conditions as may be demanded by the congress. 555-24 (c) The authority may expend all sums reasonably determined 555-25 by the board to be necessary or expedient for seeking cooperation 555-26 in accomplishing the objectives of this chapter from the federal 556-1 government or any and all other persons, creatures, or entities, 556-2 whether natural or creatures of law or contract. 556-3 (d) Subject to the provisions of this chapter, the authority 556-4 may sell or otherwise dispose of property of any kind, real, 556-5 personal, or mixed, or any interest in property, that is not 556-6 necessary to the carrying on of the business of the authority. 556-7 (e) The authority may overflow and inundate any public lands 556-8 and public property and may require the relocation of roads and 556-9 highways in the manner and to the extent permitted to districts 556-10 organized under general laws pursuant to Section 59, Article XVI, 556-11 Texas Constitution. If the authority, in the exercise of the power 556-12 of eminent domain or power of relocation or any other power granted 556-13 under this chapter, makes necessary the relocation, raising, 556-14 rerouting, changing the grade, or altering the construction of any 556-15 railroad or street railway, all such necessary relocation, raising, 556-16 rerouting, changing of grade, or alteration of construction shall 556-17 be accomplished at the sole expense of the authority. 556-18 (f) The authority may construct, extend, improve, maintain, 556-19 and reconstruct, may cause to be constructed, extended, improved, 556-20 maintained, and reconstructed, and may use and operate, facilities 556-21 of any kind necessary or convenient to the exercise of the powers, 556-22 rights, privileges, and functions conferred on the authority by 556-23 this chapter. 556-24 (g) The authority may sue and be sued in its corporate name. 556-25 (h) The authority may adopt, use, and alter a corporate 556-26 seal. 557-1 (i) The authority may adopt and amend its bylaws for the 557-2 management of its affairs. 557-3 (j) The authority may appoint officers, agents, employees, 557-4 and professional consultants, who may not have any interest, direct 557-5 or indirect, in any contracts awarded by the authority. 557-6 (k) The authority may prescribe the duties and set the 557-7 compensation of all officers, agents, employees, and professional 557-8 consultants. 557-9 (l) The authority may acquire by purchase, lease, or gift or 557-10 in any other lawful manner and may maintain, use, and operate 557-11 property of any kind, real, personal or mixed, or any interest in 557-12 property, within and outside the boundaries of the authority, 557-13 necessary or convenient to the exercise of the powers, rights, 557-14 privileges, and functions conferred on the authority by this 557-15 chapter, in the manner provided by general law with respect to 557-16 condemnation or, at the option of the authority, in the manner 557-17 provided by the statutes relative to condemnation by districts 557-18 organized under general law pursuant to Section 59, Article XVI, 557-19 Texas Constitution. 557-20 (m) The authority may condemn lands used or dedicated for 557-21 cemetery purposes in the manner provided by general law if 557-22 reasonably necessary to effectuate the powers, rights, privileges, 557-23 and functions of the authority; provided, however, that when the 557-24 power of condemnation is sought to be exercised with respect to a 557-25 perpetual care cemetery, as defined in Section 711.001, Health and 557-26 Safety Code, as to the condemnation of the perpetual care cemetery 558-1 or a portion of the cemetery, jurisdiction for such purpose is 558-2 conferred by this section on the district court or courts of the 558-3 county in which the cemetery land or any part of the cemetery land 558-4 is located, and the condemnation action shall likewise involve the 558-5 issue of the removal of the dedication of the land as a perpetual 558-6 care cemetery and the issue of the necessity for such taking. 558-7 (n) The authority may borrow money for its corporate 558-8 purposes, may execute proper notes or other evidences of 558-9 indebtedness, and may borrow money and accept grants from the 558-10 United States and in connection with any such loan or grant, may 558-11 enter into such agreements as the United States or such corporation 558-12 or agency may require. The authority may issue negotiable bonds 558-13 for money borrowed in the manner and to the extent provided in 558-14 Section 271.029; provided, however, that nothing in this chapter 558-15 shall be construed to authorize the issuance of any bonds, notes, 558-16 or other evidences of indebtedness of the authority except as 558-17 specifically provided by this chapter, and no issuance of bonds, 558-18 notes, or other evidences of indebtedness, except as specifically 558-19 provided by this chapter, shall ever be authorized except by an act 558-20 of the legislature. 558-21 (o) The authority may obtain loans from and accept grants 558-22 from the United States and its agencies and from the state and its 558-23 agencies and may participate in and be the beneficiary of any plan 558-24 which may be evolved by the state or federal government for 558-25 guaranteeing or otherwise subsidizing the obligations of the 558-26 authority. 559-1 (p) The authority may adopt and promulgate by ordinance all 559-2 reasonable rules and regulations for purposes provided in this 559-3 chapter and generally to secure and protect all of its property and 559-4 all of its works of improvement and to regulate residence, hunting, 559-5 fishing, boating, and camping, and all recreational and business 559-6 privileges, on any navigable river of the authority or any 559-7 reservoir of the authority or on any land owned by the authority. 559-8 The authority may prescribe a reasonable and commensurate penalty 559-9 for the violation of a rule or regulation of the authority. The 559-10 penalty, which shall be cumulative of any penalties fixed by 559-11 general law, may not exceed a fine of $200 or imprisonment for 180 559-12 days or both a fine and imprisonment. A rule or regulation that 559-13 provides a penalty for a violation does not take effect, as to 559-14 enforcement of the penalty, until five days after the authority has 559-15 published a substantive statement of the rule or regulation and the 559-16 penalty for the violation once a week for three consecutive weeks 559-17 in a newspaper of general circulation in each county in which the 559-18 rule or regulation is to be effective. The substantive statement 559-19 to be published must be as condensed as possible and must afford 559-20 sufficient notice as to the act forbidden by the rule or 559-21 regulation. One notice may embrace any number of regulations. The 559-22 notice must state that breach of the regulation or regulations will 559-23 subject the violator to the imposition of a penalty and that the 559-24 full text of the regulations is on file in the principal office of 559-25 the authority, where it may be read by any interested person. Five 559-26 days after the third publication of the notice required by this 560-1 subsection, the advertised regulation shall be in effect and 560-2 ignorance of the regulation shall not constitute a defense to 560-3 prosecution for the enforcement of a penalty. After the required 560-4 publication, the rules and regulations authorized by this 560-5 subsection shall judicially be known to the courts and shall be 560-6 considered of a nature like unto that of a valid penal ordinance of 560-7 a city of the state. The authority shall be primarily liable for 560-8 any court costs incurred under this subsection and for the cost to 560-9 maintain any offender committed for imprisonment under this 560-10 subsection. A fine imposed in a proceeding under this subsection 560-11 and paid in money shall be payable to the authority and applied as 560-12 the board directs. 560-13 (q) The authority may designate an official newspaper of the 560-14 authority in each county in the authority. Each of the newspapers 560-15 must be a newspaper with general circulation in the county in which 560-16 it is located. 560-17 (r) The authority may acquire rights-of-way necessary to 560-18 construct, operate, and maintain roads necessary for ingress and 560-19 egress to any work of improvement or to any park, recreational 560-20 facility, or fish or wildlife preserve or reserve. 560-21 (s) The authority may grant concessions and franchises on 560-22 the premises of any works of improvement or any park, recreational 560-23 facility, or fish or wildlife preserve or reserve to any person or 560-24 corporation. 560-25 (t) When germane to the accomplishment of the purposes of 560-26 this chapter, and not otherwise adequately provided by Chapters 49 561-1 and 51 or provided elsewhere in this chapter, the board may adopt 561-2 and promulgate ordinances, which may be done by a majority, except 561-3 as specifically provided elsewhere in this chapter, of the 561-4 directors present at any meeting held in compliance with the 561-5 provisions of the bylaws at which a majority of the board is 561-6 present, constituting a quorum. Notice is not required before the 561-7 passage of an ordinance, except for notice of a special or regular 561-8 meeting of the board as may be provided elsewhere in this chapter. 561-9 After an ordinance is adopted, the board shall cause the ordinance 561-10 to be filed and recorded in the official records of the authority. 561-11 The board may, within its discretion, in addition to filing and 561-12 recording the ordinance in the official records of the authority, 561-13 either cause certified copies of the ordinance to be immediately 561-14 filed of record in the office of the county clerk of each county 561-15 situated in whole or in part within the authority within which the 561-16 ordinance is intended to have application or cause the ordinance to 561-17 be published once or more each week for three or more consecutive 561-18 weeks in a newspaper or newspapers of general circulation in each 561-19 county within the authority within which the ordinance is intended 561-20 to have application. Following any or all of these methods of 561-21 recording or publication, the ordinance shall be in full force and 561-22 effect, and all courts and persons shall be held to have knowledge 561-23 of it, just as though the ordinance had been included in this 561-24 chapter. The county clerk in any county shall file and record all 561-25 certified copies of the ordinance and shall charge for such filing 561-26 and recording the same fees as is provided for recording deeds of 562-1 conveyance. If Title 4 does not provide a specific power or right 562-2 germane to, or appropriate to, or adequate to accomplish a purpose 562-3 of this chapter, and the specific power has been, or may be, 562-4 conferred by law on counties, cities, water improvement districts, 562-5 water control and improvement districts, drainage districts, 562-6 navigation districts, canal corporations, channel and dock 562-7 corporations, deep water corporations, railway corporations, 562-8 terminal railway corporations, telegraph and telephone 562-9 corporations, or other like creatures of the law, then to the 562-10 extent required to make the powers and rights of the authority 562-11 adequate for that purpose, the authority may by ordinance adopt so 562-12 much of the power and right of an entity described by this 562-13 subsection as will enable the authority to effectively accomplish 562-14 that purpose. The adoption of a power or mode of procedure under 562-15 this subsection does not include any incidental limitation that 562-16 would impede the lawful accomplishment of the purposes of this 562-17 chapter. This provision is limited only by the provisions of the 562-18 constitutions of the United States and the state concerning the 562-19 rights of others. 562-20 (u) The authority has all the powers, rights, and 562-21 regulations for government and procedure, as are contained in 562-22 Chapters 49 and 51, which shall be cumulative of those provided by 562-23 this chapter, and such rules for procedure as may be provided by 562-24 ordinances adopted by the authority under other provisions of this 562-25 chapter. 562-26 Sec. 271.016. MASTER PLAN. (a) The authority shall prepare 563-1 a master plan for the maximum development of the soil and water 563-2 resources of the entire authority, including plans for the complete 563-3 utilization, for all economically beneficial purposes, of the water 563-4 resources of the authority. The master plan shall be filed with 563-5 and approved by the commission. The master plan may be amended or 563-6 supplemented from time to time by the authority; provided, however, 563-7 that a copy of the amendment or supplement to the master plan shall 563-8 be filed with and approved by the commission. The first master 563-9 plan, as amended or supplemented, is effective for a period of 10 563-10 years from the date of its approval by the commission. On the 563-11 expiration of each 10-year period, the authority shall revise its 563-12 master plan, and a copy of the revised master plan shall be filed 563-13 with and approved by the commission. 563-14 (b) Before the adoption of the master plan or any amendment 563-15 or supplement to or revision of the master plan, the board shall 563-16 give notice to the public that it proposes to adopt the master 563-17 plan, amendment, supplement, or revision by causing a notice 563-18 describing the general nature of the master plan, amendment, 563-19 supplement, or revision to be published once each week for three 563-20 consecutive weeks in a newspaper of general circulation in each 563-21 county in the authority. 563-22 (c) In addition to the publication required under Subsection 563-23 (b), a copy of the notice shall be transmitted by the manager of 563-24 the authority, by registered or certified mail, to the county judge 563-25 of each county within the authority, to the mayor of each 563-26 incorporated municipality within the authority, and to the manager 564-1 or presiding director of every water district within the authority 564-2 that has registered with the commission under Section 49.010. The 564-3 notice must be mailed not less than 20 days before the regular 564-4 meeting at which the master plan, amendment, supplement, or 564-5 revision is to be considered for the first time. 564-6 (d) The master plan, amendment, supplement, or revision may 564-7 be considered and approved at the next regular meeting of the board 564-8 following the last date of publication or, without further notice, 564-9 at any regular meeting thereafter. The affirmative vote of at 564-10 least seven members of the board is required for the approval of 564-11 the master plan, or any amendment or supplement to the master plan 564-12 or revision of the master plan. Of those seven affirmative votes, 564-13 at least four affirmative votes must be cast by directors from 564-14 Bexar County, at least one affirmative vote must be cast by a 564-15 director from Wilson County, at least one affirmative vote must be 564-16 cast by a director from Karnes County, and at least one affirmative 564-17 vote must be cast by a director from Goliad County. 564-18 (e) After the master plan is filed with the commission, the 564-19 plan of any water development proposal within the entire authority 564-20 not exempted by law from the requirement for procuring a permit 564-21 shall be submitted to the commission, and a copy of the plan shall 564-22 be furnished to the authority at its principal office by the party 564-23 proposing the development, who shall notify the commission of 564-24 compliance with this subsection. The authority shall make its 564-25 recommendations in reference to the proposed development to the 564-26 commission within 60 days after receipt of a copy of the water 565-1 development plan. The commission shall hold a hearing at which the 565-2 proponents of the proposed water development plan and the authority 565-3 shall have an opportunity to present their evidence and 565-4 recommendations to the commission. The commission shall approve or 565-5 disapprove the proposed water development plan, notwithstanding any 565-6 provision of the authority's master plan, in accordance with the 565-7 applicable provisions of this code. 565-8 (f) The master plan, and all amendments or supplements to or 565-9 revisions of the master plan, shall be prepared so as to carry out 565-10 the purposes of Sections 11.123, 12.014, 16.012, and 16.018 and the 565-11 rules and regulations of the commission. 565-12 Sec. 271.017. AUTHORITY CONSTABULARY. In order to 565-13 accomplish the objectives of this chapter, the authority may 565-14 constitute and maintain its own independent constabulary under oath 565-15 and bond, insofar as is applicable, conditioned as is provided for 565-16 a sheriff of a county. The constabulary shall police the 565-17 authority's property and its controlled facilities and may make 565-18 arrests to prevent injury to the properties or after the offense or 565-19 violation of any penal ordinance of the authority, and, on 565-20 complaint or indictment lawfully had on the offense or violation, 565-21 may make arrests either within or beyond the boundaries of the 565-22 authority. 565-23 Sec. 271.018. DUTIES OF CERTAIN STATE OFFICERS. The 565-24 commission shall cooperate with the authority in the making of 565-25 investigations and plans and the approval of plans for improvements 565-26 to be provided by the authority. The plans are subject to approval 566-1 by the commission when appropriate under the general laws of the 566-2 state; provided, only, that if the federal government has adopted a 566-3 plan for improvements, the plan shall control as to all matters 566-4 except the use of water already under permit from the state. 566-5 Sec. 271.019. BOARD OF DIRECTORS; QUALIFICATIONS OF 566-6 DIRECTORS; VACANCIES; TERM OF OFFICE. (a) The government and 566-7 control of the authority are vested in a board of directors. The 566-8 board consists of 12 directors. Six of the directors must be 566-9 elected from Bexar County, two from Wilson County, two from Karnes 566-10 County, and two from Goliad County. 566-11 (b) Each director serves for a term of six years, and holds 566-12 office until a successor is elected and has qualified by taking the 566-13 oath of office. 566-14 (c) Before assuming the person's duties as director, each 566-15 director shall take the constitutional oath of office, which shall 566-16 be filed in written form with the secretary of the board. 566-17 (d) Vacancies occurring on the board from any county shall 566-18 be filled by appointment by the governor, with the advice and 566-19 consent of the senate, for the unexpired term. 566-20 (e) Any person over the age of 21 years residing within the 566-21 authority and within the county from which the person is elected or 566-22 appointed and possessing the qualifications of a juror is eligible 566-23 to be elected or appointed and to serve as a director. 566-24 Sec. 271.020. ELECTION OF DIRECTORS. (a) All elections 566-25 within the authority must be conducted in accordance with rules 566-26 provided by the bylaws and the Election Code. The results of all 567-1 elections shall be canvassed by the board at the next regular 567-2 meeting following each biennial election. All elections shall be 567-3 held on the third Saturday in January of each odd-numbered year and 567-4 at the polling places designated by the board. The terms of office 567-5 of directors elected at each election after the first election 567-6 shall commence on the first day of February following their 567-7 election. Elections shall be conducted as provided by this 567-8 section. 567-9 (b) Persons seeking to have their names placed on the ballot 567-10 shall make application to the secretary of the board in accordance 567-11 with rules prescribed by the board either in the ordinance calling 567-12 the election or in the bylaws. 567-13 (c) The secretary of the board shall make up the ballot for 567-14 each county from the names of candidates who have filed 567-15 applications, and the placing of the names of the candidates on the 567-16 ballot shall be determined by lot. The drawing of lots for the 567-17 placing of the names of the candidates on the ballot shall be by 567-18 the secretary of the board, and all candidates, or their designated 567-19 representatives, may be present at the drawing. 567-20 (d) The directors from Wilson, Karnes, and Goliad counties 567-21 shall be elected at large from each county. Four directors from 567-22 Bexar County shall be elected from single-member districts and two 567-23 directors shall be elected at large. The four single-member 567-24 districts shall be coterminous with and bear the same number as the 567-25 Bexar County commissioners precincts. A candidate for a 567-26 single-member district position must live in the district the 568-1 candidate seeks to represent. 568-2 (e) The candidates receiving the greatest number of votes, 568-3 that is a plurality, shall be declared elected. Should there be a 568-4 tie in the votes received, the winner of the election shall be 568-5 determined by a majority of the board. The two at-large directors 568-6 of Bexar County shall be elected simultaneously by plurality, and 568-7 the two candidates receiving the greatest number of votes shall be 568-8 declared elected. 568-9 (f) Directors serving from single-member districts at the 568-10 time new single-member districts are adopted shall serve for the 568-11 remainder of the terms to which they were elected regardless of the 568-12 redistricting. 568-13 Sec. 271.021. COMPENSATION AND EXPENSES OF DIRECTORS. A 568-14 director is entitled to the compensation and allowances established 568-15 by general law for each day of official service, whether at a 568-16 meeting of the board or while serving on a committee of the board, 568-17 and in addition is entitled to reimbursement for all expenses 568-18 necessarily incurred by reason of such service. A meeting shall be 568-19 considered a day of service; provided, however, that no charge 568-20 shall be made for more than one meeting held on any one day, and a 568-21 director may not be paid per diem in excess of 150 days in any one 568-22 fiscal year, exclusive of reimbursement for expenses, as 568-23 compensation for service rendered as a director and as a member of 568-24 a committee. 568-25 Sec. 271.022. REMOVAL OF DIRECTORS AND OFFICERS. A director 568-26 or officer is subject to removal or suspension from office, by the 569-1 affirmative vote of eight directors, for incompetency, official 569-2 misconduct, official gross negligence, or habitual drunkenness or 569-3 for nonattendance at six consecutive regular meetings of the board; 569-4 provided, however, that a director or officer may not be removed or 569-5 suspended from office unless charges in writing are filed against 569-6 the director and the director is given the opportunity of a fair 569-7 hearing before the board. 569-8 Sec. 271.023. ORGANIZATION AND MEETINGS OF THE BOARD; 569-9 OFFICERS; QUORUM; MEETINGS. (a) At the first regular meeting of 569-10 the board held in the month of February of each odd-numbered year, 569-11 the board shall elect by majority vote a chairman, a vice chairman, 569-12 a secretary, and a treasurer, and, within the discretion of the 569-13 board, an assistant secretary and an assistant treasurer, who need 569-14 not be members of the board and who may be granted limited powers 569-15 in the bylaws. The officers so elected shall serve for a term of 569-16 two years and until their successors have been elected, except that 569-17 the assistant secretary and the assistant treasurer, if such 569-18 officers are elected, shall hold office at the pleasure of the 569-19 board. 569-20 (b) A quorum at all meetings of the board shall consist of 569-21 not less than seven members. A quorum at all meetings of the 569-22 executive committee shall consist of not less than three members. 569-23 Regular and special meetings of the board shall be held as provided 569-24 by the bylaws, and notice of the meetings shall be given as 569-25 required by the bylaws. The board shall meet periodically with the 569-26 commission. All meetings of the board shall be open to the public. 570-1 Sec. 271.024. POWERS OF THE BOARD AND EXECUTIVE COMMITTEE; 570-2 MANAGER; EMPLOYEES; SURETY BONDS. (a) The board shall be 570-3 responsible for the management and control of all affairs of the 570-4 authority. The board may exercise the powers provided by this 570-5 section. 570-6 (b) The board may exercise all the powers, rights, 570-7 privileges, and functions conferred by law on the authority. 570-8 (c) The board may adopt all such bylaws as are not 570-9 inconsistent with the law. The bylaws may provide for the 570-10 designation by the board of an executive committee of five members 570-11 upon whom the manager may call for policy decisions and advice 570-12 concerning matters that arise between meetings of the board. The 570-13 executive committee may authorize, on behalf of the authority, the 570-14 execution of any contract involving the expenditure of an amount 570-15 not exceeding $20,000. 570-16 (d) The board may appoint and set the salary of a manager, 570-17 who shall be the chief executive officer of the authority. The 570-18 manager shall employ and supervise, subject to policies promulgated 570-19 by the board, all employees, agents, accountants, attorneys, 570-20 engineers, and others rendering professional services necessary and 570-21 required to accomplish the purposes of this chapter. The manager 570-22 may execute, on behalf of the authority, without specific 570-23 authorization of the board, any contract not subject to competitive 570-24 bidding. The manager may execute on behalf of the authority and 570-25 with specific authorization of the board, any other contract. 570-26 (e) Except as specifically provided by this chapter, all the 571-1 powers, rights, privileges, and functions of the authority may be 571-2 exercised by a majority of the directors present at a meeting of 571-3 the board, or of the executive committee if the sum involved is no 571-4 greater than $20,000, held in compliance with the provisions of the 571-5 bylaws provided a majority of the board, or of the executive 571-6 committee, is present, constituting a quorum. 571-7 (f) The board shall have all such additional powers as may 571-8 be conferred on the authority by other provisions of this chapter, 571-9 Section 59, Article XVI, Texas Constitution, and Chapters 49 and 571-10 51; provided, however, that the directors shall be ineligible to 571-11 engage in any transaction for gain or profit with the authority. 571-12 (g) The directors and all officers of the authority who are 571-13 not directors shall, within 15 days after their election or 571-14 appointment, file a good and sufficient bond with the secretary of 571-15 the board. The official bond of each director and officer shall be 571-16 in the sum of $5,000, shall be payable to the authority, shall be 571-17 conditioned on the faithful performance of the person's duties as 571-18 director or officer, and shall be subject to approval by the 571-19 secretary of the board. 571-20 Sec. 271.025. AUDIT. (a) A complete system of accounts 571-21 shall be kept by the authority in accordance with generally 571-22 accepted principles of accounting. The state auditor shall 571-23 annually audit the books and accounts of the authority in such 571-24 manner as to enable the state auditor to report to the legislature 571-25 as to the manner and purpose of the expenditure of all funds of the 571-26 authority. The audit shall cover the fiscal year from July 1 to 572-1 June 30, and a report of the audit shall be made before January 1 572-2 of each year. A copy of the audit report shall be filed with the 572-3 governor, the lieutenant governor, the attorney general, the 572-4 speaker of the house of representatives, the county judge of each 572-5 county included in the authority, and each state senator and member 572-6 of the house of representatives of each county within the 572-7 authority. 572-8 (b) The state auditor, after completing the report, shall 572-9 prepare a detailed statement showing the actual cost of the audit 572-10 and shall certify the statement to the governor for approval. The 572-11 statement, when approved by the governor, shall be delivered to the 572-12 manager of the authority, and the authority shall immediately 572-13 deposit the amount of the cost with the comptroller, which amount 572-14 shall be placed in the general fund of the state. Nothing in this 572-15 section shall prohibit the authority from employing the 572-16 professional services of an independent certified public accountant 572-17 or firm of certified public accountants for any purpose. All 572-18 books, accounts, contracts, records, papers, and archives of the 572-19 authority shall be kept and maintained at the authority's general 572-20 office and shall be open to public inspection at all reasonable 572-21 times. 572-22 Sec. 271.026. PAYMENT OF DEBTS. Each indebtedness, 572-23 liability, or obligation of the authority for the payment of money, 572-24 however entered into or incurred and whether arising from express 572-25 contracts or implied contracts or otherwise, shall be payable 572-26 solely out of revenue received by the authority with respect to its 573-1 properties and out of any other funds or income from any source 573-2 whatsoever coming into possession of the authority including 573-3 proceeds of the sale of bonds. 573-4 Sec. 271.027. TAXATION. (a) Subject to the limitation as 573-5 to the maximum rate of tax as prescribed in this section, the 573-6 authority may levy and collect throughout the territory of the 573-7 authority such ad valorem taxes as are voted at an election or 573-8 elections called by the board for that purpose and conducted 573-9 throughout the territory of the authority. The maximum rate of tax 573-10 that can be levied and collected for any year shall be two cents on 573-11 the $100 of taxable property based on its assessed valuation, in 573-12 accordance with the conditions and procedures provided by this 573-13 section. 573-14 (b) The board may, by ordinance, call an election to submit 573-15 to the voters for approval of an ad valorem tax; provided, however, 573-16 that a public hearing to discuss the proposed tax issue shall be 573-17 held in each county in the authority. The public hearings shall be 573-18 held not less than 10 days nor more than 25 days prior to the 573-19 scheduled date of the election. The hearings shall be called by 573-20 the board and notice of the time, day, date, place, and purpose of 573-21 the hearings shall be given by publishing the notice in at least 573-22 one newspaper of general circulation in each county where a hearing 573-23 is to be held at least 10 days before the hearing. 573-24 (c) Only qualified electors residing within the boundaries 573-25 of the authority shall be entitled to vote in the election. An 573-26 elector otherwise qualified must vote in the county of the 574-1 elector's residence and at the polling place designated for the 574-2 precinct of the elector's residence. The ordinance calling the 574-3 election shall specify the polling place or places in each of the 574-4 counties. The notice of election will be sufficient as to any 574-5 county within the authority if it states that the election is to be 574-6 held throughout the territory comprising the authority and if it 574-7 specifies the polling place or places in the county. It shall not 574-8 be necessary to publish such details except in the county in which 574-9 they are applicable. 574-10 (d) Returns of the election shall be made to the board, and 574-11 the board shall canvass the returns of the election and adopt an 574-12 ordinance declaring the results. The board may levy taxes within 574-13 the maximum rate voted if a majority of the votes cast throughout 574-14 the authority are in favor of the levy of the tax and if a majority 574-15 of the votes cast in any three counties in the authority are in 574-16 favor of the levy of the tax. 574-17 (e) The rate of tax shall be uniform throughout the 574-18 territory comprising the authority and shall be certified by the 574-19 chairman and the secretary of the board to the tax assessor and the 574-20 tax collector of each included county. 574-21 (f) If the election results are in favor of the levy of a 574-22 tax, the board may borrow money payable from the tax and may 574-23 evidence such loan by a negotiable note given in the name of the 574-24 authority. 574-25 (g) Taxes collected under this section shall be used for the 574-26 purpose of general administration, preparation of the master plan 575-1 provided for in Section 271.016, and for other planning and 575-2 services with respect to any of the purposes, rights, privileges, 575-3 and functions of the authority; provided, however, that none of the 575-4 taxes thus collected shall be used to pay for or finance the 575-5 construction of any dams, reservoirs, levees, channels, pipelines, 575-6 or other major physical works of the authority, to pay for the cost 575-7 of any right-of-way acquisitions or the expenses of right-of-way 575-8 acquisition, or to pay damages awarded by any court under Section 575-9 17, Article I, Texas Constitution. It is the intent of this 575-10 chapter that any taxes collected under this section will enable the 575-11 authority to develop a master plan for the maximum development of 575-12 the soil and water resources of the authority, it being found and 575-13 determined that the benefits to be realized from such maximum 575-14 development can be obtained only through areawide participation and 575-15 planning. The construction of any dams, reservoirs, levees, 575-16 channels, pipelines, or other major physical works of the authority 575-17 shall be paid for or financed by revenue bonds of the authority to 575-18 be redeemed either by the sale of services or by taxes to be levied 575-19 by a county or municipality and paid over to the authority as an 575-20 independent contractor of the county or municipality. Any taxes 575-21 collected under this section may be used to pay for the operation, 575-22 repair, or maintenance of any flood control, soil conservation, 575-23 watershed protection or erosion structures, or works of improvement 575-24 constructed in cooperation with the federal government; provided, 575-25 however, that any such operation, repair, or maintenance costs 575-26 shall be paid for out of taxes collected under this section in the 576-1 county in which the structure or work of improvement is located. 576-2 The taxes authorized by this section and collected shall not be 576-3 pledged to the redemption of any bonds of the authority. 576-4 Sec. 271.028. RENDITION, ASSESSMENT, LEVYING, AND COLLECTION 576-5 OF TAXES. (a) The rendition and assessment of property for 576-6 taxation and the collection of taxes for the benefit of the 576-7 authority shall be in accordance with the law applicable to 576-8 counties, insofar as such law is applicable. Renditions shall be 576-9 to the county tax assessor of the county in which the property is 576-10 taxable for state and county purposes. The assessor and collector 576-11 in each county shall cause to be placed on the county tax rolls 576-12 such additional column or columns as are needed to show the tax 576-13 levied by the authority and the amount of the tax, based on the 576-14 value of the property as approved finally for state and county 576-15 purposes by the board of equalization of the county. The fee for 576-16 assessing and collecting taxes shall be two percent of the taxes 576-17 collected. The fee shall be paid over and disbursed in each county 576-18 in the manner that other fees of office are paid over. All of the 576-19 laws for the enforcement of state and county taxes shall be 576-20 available to the authority. The authority has the right to cause 576-21 the officers of each county to enforce the taxes due to the 576-22 authority in that county as provided in the law for the enforcement 576-23 of state and county taxes. 576-24 (b) Taxes assessed and levied for the benefit of the 576-25 authority shall be payable and shall become delinquent at the same 576-26 time, in the same manner, and subject to the same discount for 577-1 advance payment as taxes levied by and for the benefit of the 577-2 county in which the property is taxable. The fee for collecting 577-3 delinquent taxes through prosecution of suit shall be 15 percent of 577-4 the taxes collected by the suit, to be paid over and disbursed in 577-5 each county in the manner that other fees of office are paid over. 577-6 Sec. 271.029. ISSUANCE OF BONDS. (a) For the purpose of 577-7 constructing improvements related to the exercise of any power or 577-8 powers conferred on the authority by law, the authority may issue 577-9 negotiable bonds, either as a single issue or in separate issues, 577-10 from time to time, to be secured by a pledge of revenues, income, 577-11 and funds of the authority without reference to their source and 577-12 having such priority of liens on the revenues, income, and funds as 577-13 may be prescribed in the proceedings authorizing the issuance of 577-14 the bonds; provided, however, that no ad valorem taxes collected in 577-15 accordance with the provisions of Sections 271.027 and 271.028 577-16 shall be pledged to any issue or issues of bonds. 577-17 (b) The authority may issue the bonds provided for in this 577-18 section by action of the board without the necessity of an 577-19 election. 577-20 (c) Bonds of the authority may be: 577-21 (1) sold for cash, at public sale, at such price or 577-22 prices as the board determines, provided that the interest cost of 577-23 the money received, computed to maturity in accordance with 577-24 standard bond tables in general use by banks and insurance 577-25 companies, shall not exceed six percent per year; 577-26 (2) issued on the terms the board determines in 578-1 exchange for property of any kind, real, personal, or mixed, or any 578-2 interest in the property that the board determines necessary or 578-3 convenient for any corporate purpose; or 578-4 (3) issued in exchange for principal amounts or other 578-5 obligations of the authority, matured or unmatured. 578-6 (d) The proceeds of sale of bonds may be deposited in such 578-7 banks or trust company or trust companies and may be paid out 578-8 pursuant to such terms and conditions as may be agreed between the 578-9 authority and the purchasers of the bonds. 578-10 (e) Bonds of the authority must be authorized by resolution 578-11 of the board concurred in by at least eight of the members of the 578-12 board. The bonds must bear such date or dates; mature at such time 578-13 or times; bear interest at such rate or rates not exceeding six 578-14 percent per year, payable annually or semiannually; be in such 578-15 denominations; be in such form, either coupon or registered; carry 578-16 such registration privileges as to principal only or as to both 578-17 principal and interest and as to exchange of coupon bonds for 578-18 registered bonds, or vice versa, and exchange of bonds of one 578-19 denomination for bonds of other denomination; be executed in such 578-20 manner; and be payable at such place or places, within or outside 578-21 the state, as the resolution or resolutions may provide. 578-22 (f) The resolution or resolutions authorizing the issuance 578-23 of bonds may contain provisions, which shall be part of the 578-24 contract between the authority and the purchaser and successive 578-25 holders of the bonds: 578-26 (1) reserving the right to redeem the bonds at such 579-1 time or times, in such amounts, and at such prices, not exceeding 579-2 105 percent of the principal amount of the bonds plus accrued 579-3 interest, as may be provided in the resolution; 579-4 (2) providing for the setting aside of sinking funds 579-5 or reserve funds and the regulation and disposition of such funds; 579-6 (3) pledging, to secure the payment of the principal 579-7 of and interest on the bonds and of the sinking fund or reserve 579-8 fund payments agreed to be made with respect to the bonds, part or 579-9 all of the revenue and income of every kind and character from any 579-10 source later received by the authority; 579-11 (4) prescribing the purposes to which the bonds or 579-12 bonds later issued, or the proceeds of the bonds, may be applied; 579-13 (5) agreeing to set and collect rates, charges, and 579-14 assessments sufficient to produce net revenues adequate to pay the 579-15 items specified in Subdivisions (1), (2), and (3) and prescribing 579-16 the use and disposition of all revenues; 579-17 (6) prescribing limitations on the issuance of 579-18 additional bonds and on the agreements that may be made with the 579-19 purchasers and successive holders of the bonds; 579-20 (7) relating to the construction, extension, 579-21 improvement, reconstruction, operation, maintenance, and repair of 579-22 the properties of the authority and to the carrying of insurance on 579-23 all or any part of the properties covering loss or damage or loss 579-24 of use and occupancy resulting from specified risks; 579-25 (8) fixing the procedure, if any, by which, if the 579-26 authority desires, the terms of any contract with the holders of 580-1 the bonds may be amended or abrogated, the amount of bonds the 580-2 holders of which must consent to the amendment or abrogation, and 580-3 the manner in which such consent may be given; 580-4 (9) providing for the execution and delivery by the 580-5 authority to a bank or trust company authorized by law to accept 580-6 trusts, or to the United States or any officer or agency of the 580-7 United States, of indentures and agreements for the benefit of the 580-8 holders of the bonds setting forth any or all of the agreements 580-9 authorized by this section to be made with or for the benefit of 580-10 the holders of the bonds and such other provisions as may be 580-11 customary in such indentures or agreements; and 580-12 (10) making such other provisions not inconsistent 580-13 with the provisions of this chapter as the board may approve. 580-14 Sec. 271.030. DEFAULT PROCEDURES. (a) A resolution 580-15 authorizing the issuance of bonds and any indenture or agreement 580-16 entered into pursuant to the resolution may include provisions 580-17 regarding a default on the: 580-18 (1) payment of the interest on any bonds as the 580-19 interest becomes due and payable; 580-20 (2) payment of the principal of any bonds as they 580-21 become due and payable, whether at maturity, by call for 580-22 redemption, or otherwise; or 580-23 (3) performance of an agreement made with the 580-24 purchasers or successive holders of any bonds. 580-25 (b) If a default described by Subsection (a) has occurred 580-26 and has continued for a period, if any, prescribed by the 581-1 resolution authorizing the issuance of the bonds, the trustee under 581-2 the indenture or indentures entered into with respect to the bonds 581-3 authorized by the resolution, or, if there is no indenture, a 581-4 trustee appointed in the manner provided in the resolution by the 581-5 holders of 25 percent in aggregate principal amount of the bonds 581-6 authorized by the resolution and then outstanding may, and on the 581-7 written request of the holders of 25 percent in aggregate principal 581-8 amount of the bonds authorized by the resolution and then 581-9 outstanding shall, in the trustee's own name but for the equal and 581-10 proportionate benefit of the holders of all the bonds, and with or 581-11 without having possession of the bonds: 581-12 (1) by mandamus or other suit, action, or proceeding 581-13 at law or in equity, enforce all rights of the holders of the 581-14 bonds; 581-15 (2) bring suit on the bonds or the appurtenant 581-16 coupons; 581-17 (3) by action or suit in equity, require the authority 581-18 to account as if it were the trustee of an express trust for the 581-19 bondholders; 581-20 (4) by action or suit in equity, enjoin any acts or 581-21 things which may be unlawful or in violation of the rights of the 581-22 holders of the bonds; or 581-23 (5) after such notice to the authority as the 581-24 resolution may provide, declare the principal of all of the bonds 581-25 due and payable, and if all defaults have been made good, then with 581-26 the written consent of the holders of 25 percent in aggregate 582-1 principal amount of the bonds then outstanding, annul the 582-2 declaration and its consequences; provided, however, that the 582-3 holders of more than a majority in principal amount of the bonds 582-4 authorized by the resolution and then outstanding shall, by written 582-5 instrument delivered to the trustee, have the right to direct and 582-6 control any and all action taken or to be taken by the trustee 582-7 under this section. 582-8 (c) A resolution, indenture, or agreement relating to bonds 582-9 may provide that in a suit, action, or proceeding under this 582-10 section, the trustee, whether or not all of the bonds have been 582-11 declared due and payable and with or without possession of any of 582-12 the bonds, shall be entitled as of right to the appointment of a 582-13 receiver who may enter and take possession of all or any part of 582-14 the properties of the authority and operate and maintain the 582-15 properties, and set, collect, and receive rates and charges 582-16 sufficient to provide revenues adequate to apply the items set 582-17 forth in Sections 271.029(f)(1), (2), and (3) and the costs and 582-18 disbursements of the suit, action, or proceeding and apply such 582-19 revenues in conformity with the provisions of this chapter and the 582-20 resolution or resolutions authorizing the bonds. 582-21 (d) In any suit, action, or proceeding by a trustee under 582-22 this section, the reasonable fees, counsel fees, and expenses of 582-23 the trustee and of the receiver or receivers, if any, shall 582-24 constitute taxable disbursements, and all costs and disbursements 582-25 allowed by the court shall be a first charge on any revenues 582-26 pledged to secure the payment of the bonds. 583-1 (e) Subject to the provisions of the constitution, the 583-2 courts of Bexar County shall have jurisdiction of any such suit, 583-3 action, or proceeding by a trustee under this section on behalf of 583-4 the bondholders and of all property involved in the suit, action, 583-5 or proceeding. 583-6 (f) In addition to the powers specifically provided by this 583-7 section, the trustee shall have and possess all powers necessary or 583-8 appropriate for the exercise of the powers specifically provided or 583-9 incident to the general representation of the bondholders in the 583-10 enforcement of their rights. 583-11 Sec. 271.031. BOND APPROVAL AND REGISTRATION. (a) Before 583-12 bonds may be sold by the authority, a certified copy of the 583-13 proceedings for the issuance of the bonds, including the form of 583-14 the bonds, together with any other information that the attorney 583-15 general may require, shall be submitted to the attorney general, 583-16 and if the attorney general finds that the bonds have been issued 583-17 in accordance with law, the attorney general shall approve the 583-18 bonds and execute a certificate to that effect, which shall be 583-19 filed in the office of the comptroller and be recorded in a record 583-20 kept for that purpose. In lieu of the approval by the attorney 583-21 general, the authority may institute proceedings as authorized by 583-22 Chapter 1205, Government Code. The comptroller shall register the 583-23 bonds if the attorney general has filed with the comptroller the 583-24 certificate approving the bonds and the proceedings for the 583-25 issuance of the bonds as provided in this section. Bonds may not 583-26 be issued until the bonds have been registered by the comptroller. 584-1 (b) Bonds approved by the attorney general, registered by 584-2 the comptroller, and issued in accordance with the proceedings as 584-3 approved are valid and binding obligations of the authority and are 584-4 incontestable for any cause after registration. 584-5 (c) Nothing in this chapter shall prevent the authority from 584-6 making a private sale of its bonds to the Texas Water Development 584-7 Board under such terms and conditions as the board in its 584-8 discretion determines advisable, and such private sale is 584-9 specifically authorized by this chapter. 584-10 Sec. 271.032. PURCHASE OF BONDS BY AUTHORITY. The authority 584-11 may, out of any funds available for the purpose, purchase any bonds 584-12 issued by it at a price not exceeding the redemption price 584-13 applicable at the time of the purchase or, if such bonds are not 584-14 redeemable, at a price not exceeding the principal amount of the 584-15 bonds plus accrued interest. All bonds so purchased shall be 584-16 cancelled, and no bonds shall ever be issued in lieu of such bonds. 584-17 Sec. 271.033. BONDS LEGAL FOR INVESTMENT AND SECURITY. The 584-18 bonds of the authority are legal and authorized investments for 584-19 banks, savings banks, trust companies, building and loan 584-20 associations, savings and loan associations, insurance companies, 584-21 fiduciaries, trustees, and guardians and for the sinking funds of 584-22 cities, towns, villages, counties, school districts, or other 584-23 political corporations or subdivisions of the state. The bonds are 584-24 eligible to secure the deposit of all public funds of the state and 584-25 all public funds of cities, towns, villages, counties, school 584-26 districts, or other political corporations or subdivisions of the 585-1 state, and the bonds are lawful and sufficient security for such 585-2 deposits to the extent of their value when accompanied by all 585-3 unmatured coupons. 585-4 Sec. 271.034. PROPERTY OF THE AUTHORITY. (a) Nothing in 585-5 this chapter shall be construed as authorizing the authority, and 585-6 it may not be authorized, to mortgage or otherwise encumber any of 585-7 its property of any kind, real, personal, or mixed, or any interest 585-8 in such property, or to acquire any such property or interest 585-9 subject to a mortgage or conditional sale; provided, however, that 585-10 this subsection shall not be construed as preventing the pledging 585-11 of any revenues and income of the authority of every kind and 585-12 character and from any source whatever, except ad valorem taxes 585-13 collected by the authority in accordance with Sections 271.027 and 585-14 271.028. 585-15 (b) Nothing in this chapter shall be construed as 585-16 authorizing the authority or any receiver of its properties or any 585-17 court to sell, lease, or otherwise dispose of any of the 585-18 authority's property of any kind, real, personal, or mixed, or any 585-19 interest in such property, unless such sale, lease, or other 585-20 disposition has been generally authorized by this chapter; 585-21 provided, however, that the authority may sell or otherwise dispose 585-22 of property of any kind or any interest in property that is not 585-23 necessary to carry on the business of the authority if the board, 585-24 by a majority vote of a quorum present at any regular or special 585-25 meeting, determines that the property is not convenient to the 585-26 business of the authority and is surplus. The board shall cause a 586-1 notice of such proposed sale to be published once each week for 586-2 three consecutive weeks in a newspaper of general circulation in 586-3 the county or counties in which the property or interest in 586-4 property is located if the appraised value of the property or 586-5 interest in property is in excess of $5,000 and the property or 586-6 interest in property is not partial or total consideration in a 586-7 transaction for the exchange of properties. 586-8 Sec. 271.035. BONDS EXEMPT FROM TAXATION. Bonds and 586-9 interest on bonds issued under this chapter are exempt from 586-10 taxation, except inheritance taxes, by the state or by any 586-11 municipal corporation, county, or other political subdivision or 586-12 taxing district of the state. 586-13 Sec. 271.036. APPEAL BOND NOT REQUIRED. The authority may 586-14 not be required to give bond on any appeal from judgment in any 586-15 court. 586-16 Sec. 271.037. FULL AUTHORITY TO ISSUE BONDS. This chapter, 586-17 without reference to other statutes of the state, constitutes full 586-18 authority for the authorization and issuance of bonds under this 586-19 chapter, and no other act or law with regard to the authorization 586-20 or issuance of obligations or the deposit of the proceeds of 586-21 obligations or in any way impeding or restricting the carrying out 586-22 of the acts authorized by this chapter shall be construed as 586-23 applying to any proceedings taken or acts done pursuant to this 586-24 chapter. 586-25 Sec. 271.038. CONTRACT WITH BEXAR COUNTY. Recognizing the 586-26 fact that the authority has previously entered into a contract with 587-1 the Commissioners Court of Bexar County for the purpose of 587-2 financing the construction of certain flood control and soil 587-3 conservation works of improvement in Bexar County, the authority is 587-4 prohibited from spending any income or revenue derived from the 587-5 contract and from all amendments to or reformations of the contract 587-6 for any purpose other than those specifically provided for in this 587-7 chapter; provided, however, that a reasonable amount of the income 587-8 or revenue may be allocated by the board for the payment of the 587-9 authority's overhead, operational costs, and the fees of the 587-10 directors who reside in Bexar County. 587-11 Sec. 271.039. POLLUTION CONTROL DISTRICT. (a) The 587-12 authority may establish one or more pollution control districts for 587-13 the purpose of accomplishing any of the powers, purposes, rights, 587-14 privileges, or authority vested in the authority regarding waste 587-15 treatment. Pollution control districts may be established by the 587-16 procedures provided by this section. 587-17 (b) The board may adopt a resolution calling for the 587-18 creation of a pollution control district, defining the boundaries 587-19 of the district, and: 587-20 (1) estimating the principal amount of and stating the 587-21 purpose of bonds proposed to be issued by the authority on behalf 587-22 of the proposed pollution control district, declaring that taxes 587-23 for the payment of the proposed bonded indebtedness shall be levied 587-24 exclusively on the taxable property within the proposed pollution 587-25 control district, and setting a time and place for a public hearing 587-26 on the matters set out in the resolution; or 588-1 (2) declaring that taxes for the maintenance of the 588-2 authority and its improvements shall be levied on the taxable 588-3 property within the proposed pollution control district and setting 588-4 a time and place for a public hearing on the matters set out in the 588-5 resolution. 588-6 (c) The resolutions authorized by Subsection (b) may be 588-7 adopted simultaneously, and simultaneous hearings on proposed bond 588-8 and maintenance taxes may be held. 588-9 (d) The public hearing may be conducted by a quorum of the 588-10 board, by one or more directors, or by one or more employees 588-11 designated by the board. If someone other than a quorum of the 588-12 board conducts the hearing, the person or persons shall have power 588-13 to accept evidence and make recommendations on which the board may 588-14 act. The board may alter, modify, or change any provision of the 588-15 resolution calling for the creation of the proposed pollution 588-16 control district subsequent to the public hearing; provided, 588-17 however, that the boundaries of the pollution control district may 588-18 not be enlarged or expanded without compliance with the notice 588-19 requirements of Subsection (e). 588-20 (e) Notice of the public hearing shall be published in a 588-21 newspaper of general circulation within the proposed pollution 588-22 control district once not less than 15 or more than 30 days before 588-23 the public hearing. To the extent not inconsistent with the 588-24 provisions of this section, notice of the public hearing must 588-25 comply with Chapter 551, Government Code. 588-26 (f) All public hearings on the creation of a pollution 589-1 control district shall be held within the boundaries of the 589-2 proposed pollution control district. The public hearings may be 589-3 held concurrently or in connection with any other public hearing, 589-4 meeting, or proceeding conducted by the board. 589-5 (g) Any interested person, including persons residing or 589-6 owning property within the authority, may appear at the public 589-7 hearing and present evidence relevant to the matter set forth in 589-8 the resolution calling for the creation of the proposed pollution 589-9 control district. All persons residing within or owning property 589-10 within the proposed pollution control district shall have the right 589-11 to appear at the public hearing and present evidence with regard to 589-12 whether they will receive benefits from the proposed improvements 589-13 or taxation. Failure to appear at the public hearing shall 589-14 constitute a waiver of all objections the absent party might have 589-15 had to all matters set forth in the resolution calling for the 589-16 creation of the proposed pollution control district. 589-17 (h) The board shall review the findings and recommendations 589-18 resulting from the public hearing and may adopt a resolution 589-19 creating the pollution control district, stating the purposes for 589-20 which the pollution control district has been created, designating 589-21 the boundaries of the pollution control district, declaring that 589-22 the indebtedness to be incurred or the cost of services to be 589-23 rendered by the authority for the benefit of the pollution control 589-24 district shall be payable from taxes levied on property within the 589-25 pollution control district, finding that the property within the 589-26 pollution control district will benefit from the indebtedness 590-1 proposed to be incurred or the services proposed to be rendered by 590-2 the authority on its behalf, and calling for an election within the 590-3 pollution control district to authorize the indebtedness or 590-4 maintenance tax. The resolution shall further state the date of 590-5 the election, the proposition or propositions to be voted on, the 590-6 location of the polling places, and the names of the officers of 590-7 the election. The election may be held in conjunction with a 590-8 general election or a special election other than a primary 590-9 election. The provisions of the Election Code shall govern the 590-10 election unless contrary to any provision of this chapter. 590-11 (i) The resolution of the board creating a pollution control 590-12 district shall be final and conclusive and shall not be subject to 590-13 review by any court except on the basis of whether the resolution 590-14 is supported by substantial evidence. The resolution shall be 590-15 filed in the deed records of the county or counties in which the 590-16 territory within the pollution control district is situated. 590-17 Unless an action or a proceeding in which the validity of the 590-18 board's resolution creating a pollution control district or of the 590-19 proceedings relative to the resolution is contested, questioned, or 590-20 denied is commenced within 30 days from the effective date of the 590-21 resolution, the resolution and all proceedings relative to the 590-22 resolution, including the creation of the pollution control 590-23 district, shall be valid and in every respect legal and 590-24 incontestable. 590-25 (j) The boundaries of a pollution control district may 590-26 include any territory within the authority, whether or not the 591-1 territory contains noncontiguous parcels of land and whether or not 591-2 the territory is located within the boundaries of any incorporated 591-3 city, town, village, or any other governmental entity or political 591-4 subdivision of the state. If any portion of the territory of a 591-5 proposed pollution control district is located within the 591-6 boundaries or within the exclusive extraterritorial jurisdiction of 591-7 an incorporated city, town, or village, the board may not create 591-8 the pollution control district unless it has obtained the consent 591-9 of that city, town, or village. The consent may contain such 591-10 conditions as may be mutually agreed by the authority and the city, 591-11 town, or village and shall be evidenced by a duly enacted ordinance 591-12 of the governing body of the city, town, or village. 591-13 (k) Proceedings for the annexation of territory to an 591-14 existing pollution control district may be initiated by a 591-15 resolution of the board or by a petition signed by the owners of 50 591-16 percent or more of the value of the land subject to the proceedings 591-17 or by a petition signed by a majority of the residents of the 591-18 territory to be annexed. The petition must, insofar as is 591-19 practicable, set forth substantially those matters that would be 591-20 set forth in a resolution calling for the creation of a pollution 591-21 control district and must request a public hearing by the board on 591-22 the matters set out in the petition. The public hearing shall be 591-23 held in substantial compliance with the provisions set forth in 591-24 this section for a public hearing on creation of a pollution 591-25 control district. If the board determines that the annexation 591-26 should be accomplished, the board may adopt a resolution calling 592-1 separate elections on the matter of annexation to be held within 592-2 the existing pollution control district and within the territory to 592-3 be annexed. The annexation shall not become final unless approved 592-4 by a majority of the qualified voters within the existing pollution 592-5 control district and unless a majority of the qualified voters 592-6 within the boundaries of the territory to be annexed approve the 592-7 annexation and elect to allow the territory that is to be annexed 592-8 to be taxed for maintenance purposes or to allow the territory that 592-9 is to be annexed to assume its pro rata share of indebtedness 592-10 previously authorized or of taxes necessary to support the voted 592-11 but unissued tax bonds or tax revenue bonds of the authority that 592-12 are to be issued on behalf of the existing pollution control 592-13 district and authorize the board to levy a tax on the property in 592-14 the territory that is to be annexed for payment for the unissued 592-15 bonds, when issued. The elections shall conform to the Election 592-16 Code to the extent that the code is not inconsistent with the 592-17 provisions of this chapter. The board's resolution canvassing the 592-18 returns of the elections shall redefine the boundaries of the 592-19 pollution control district and shall be recorded in the deed 592-20 records of the county within which the annexed territory lies. 592-21 (l) Proceedings for the addition of territory to an existing 592-22 pollution control district on which less than three qualified 592-23 voters reside may be initiated by a petition signed by the owner or 592-24 owners of the territory to be annexed seeking that the territory 592-25 described in the petition be added to the pollution control 592-26 district. The petition must, to the extent applicable, set forth 593-1 substantially those matters that would be set forth in a resolution 593-2 calling for the creation of a pollution control district and must 593-3 request a public hearing by the board on the matters set out in the 593-4 petition. The public hearing must be held in substantial 593-5 compliance with the provisions of this section relating to public 593-6 hearings on the creation of a pollution control district. If the 593-7 board determines that the addition should be accomplished, it may 593-8 adopt a resolution adding such territory. If taxes or bonds have 593-9 been authorized within the pollution control district prior to the 593-10 addition of the territory, the resolution adding the territory must 593-11 be temporary and the addition shall not become final unless 593-12 approved by a majority of the qualified voters within the pollution 593-13 control district as it exists after the addition. The election 593-14 must be held, as soon as practicable after the addition, on the 593-15 proposition of approving the addition, ratifying the unissued tax 593-16 bonds or tax revenue bonds of the authority that are to be issued 593-17 on behalf of the pollution control district, and authorizing the 593-18 board to levy a tax on the property within the pollution control 593-19 district as enlarged for payment of the unissued bonds when issued 593-20 or for the maintenance of the authority. The election must conform 593-21 to the Election Code to the extent that the code is not 593-22 inconsistent with the provisions of this chapter. The board's 593-23 resolution canvassing the returns of the election or adding the 593-24 territory shall redefine the boundaries of the pollution control 593-25 district and shall be recorded in the deed records of the county 593-26 within which the added territory lies. 594-1 (m) If the qualified voters in an election called pursuant 594-2 to this section authorize the authority to incur indebtedness for 594-3 the benefit of a pollution control district, the board may issue 594-4 bonds as provided in this chapter; provided, however, that taxes 594-5 levied for the purpose of making payments of the interest on or 594-6 principal of the bonds shall be levied only on taxable property 594-7 within the pollution control district. 594-8 (n) Notwithstanding any provision of this chapter to the 594-9 contrary, if the qualified voters in an election called pursuant to 594-10 this section authorize the authority to levy and collect ad valorem 594-11 taxes for the maintenance of the authority and its improvements, 594-12 the board may levy, assess, and collect a maintenance tax; 594-13 provided, however, that the maintenance tax may be levied only on 594-14 taxable property within the pollution control district. 594-15 (o) The board may incur such indebtedness as may be 594-16 necessary to provide all improvements, and the maintenance of the 594-17 improvements, requisite to the achievement of the purposes for 594-18 which any pollution control district is organized. The authority 594-19 may levy and collect such taxes as may be necessary for the payment 594-20 of the interest on the indebtedness and the creation of a sinking 594-21 fund for the payment of the indebtedness, and such taxes shall be a 594-22 lien on the property assessed for the payment of the indebtedness. 594-23 Sec. 271.040. LIBERAL CONSTRUCTION; CONFLICTS. This chapter 594-24 and all its terms and provisions shall be liberally construed to 594-25 effectuate the purposes set forth in this chapter; provided, 594-26 however, that: 595-1 (1) if any authority or power granted by this chapter 595-2 conflicts with any authority or power previously vested in the 595-3 Guadalupe-Blanco River Authority as created by Chapter 410, Acts of 595-4 the 44th Legislature, 1st Called Session, 1935, the power and 595-5 authority granted by the Act creating the Guadalupe-Blanco River 595-6 Authority shall supersede and control over any power or authority 595-7 granted by this chapter unless the Guadalupe-Blanco River Authority 595-8 consents to the exercise of such power or authority by the San 595-9 Antonio River Authority; 595-10 (2) no provision of this chapter shall have the effect 595-11 of divesting any person, firm, or corporation of any riparian 595-12 rights previously vested, or any vested rights derived under 595-13 existing permits for the appropriation and use of public waters 595-14 previously issued by the commission, or any vested rights derived 595-15 under any certified filings previously filed with the commission; 595-16 and 595-17 (3) nothing in this chapter shall impair or supersede 595-18 the authority and supervision granted to the commission under other 595-19 statutory provisions of the state or under the rules formulated by 595-20 the commission in accordance with law, any provision of this 595-21 chapter to the contrary notwithstanding. 595-22 Sec. 271.041. DOMICILE. The general office and place of 595-23 domicile of the authority shall be in the city of San Antonio, 595-24 Bexar County. 595-25 Sec. 271.042. CONSTITUTIONAL CONFORMITY. Nothing in this 595-26 chapter shall be construed to violate any provision of the federal 596-1 or state constitution, and all acts done under this chapter shall 596-2 be done in such a manner as will conform to those constitutions, 596-3 whether expressly provided in this chapter or not. If the board 596-4 determines that any procedure under this chapter violates the 596-5 federal or state constitution, the board may by ordinance provide a 596-6 procedure conformable with those constitutions. 596-7 CHAPTER 272. SAN JACINTO RIVER AUTHORITY 596-8 Sec. 272.001. CREATION. (a) A conservation and reclamation 596-9 district to be known as the "San Jacinto River Authority" is 596-10 created. The authority is a governmental agency and a body politic 596-11 and corporate. 596-12 (b) The authority is created under and is essential to 596-13 accomplish the purposes of Section 59, Article XVI, Texas 596-14 Constitution. 596-15 (c) The authority may exercise the powers granted by Section 596-16 59, Article XVI, Texas Constitution, to districts created to 596-17 conserve, control, and utilize to beneficial service the storm 596-18 waters and floodwaters of rivers and streams of the state, as well 596-19 as such powers as may be contemplated and implied by the purposes 596-20 of that provision of the constitution and as may be conferred by 596-21 general law and by the provisions of this chapter. 596-22 (d) The authority may formulate plans considered essential 596-23 to the operation of the authority and for its administration in the 596-24 control, storing, preservation, and distribution to all useful 596-25 purposes of the storm waters and floodwaters of the San Jacinto 596-26 River and its tributaries. 597-1 (e) The authority may exercise such authority and power of 597-2 control and regulation over the storm waters and floodwaters of the 597-3 San Jacinto River and its tributaries as may be exercised by the 597-4 state, subject to the provisions of the constitution and the acts 597-5 of the legislature. 597-6 Sec. 272.002. DEFINITIONS. In this chapter: 597-7 (1) "Authority" means the San Jacinto River Authority. 597-8 (2) "Board" means the board of directors of the 597-9 authority. 597-10 (3) "Director" means a member of the board. 597-11 Sec. 272.003. TERRITORY. (a) The authority comprises all 597-12 the territory within the watershed of the San Jacinto River and its 597-13 tributaries except the portion of the watershed that is within the 597-14 boundaries of Harris County, which is expressly excluded from the 597-15 boundaries of the authority. 597-16 (b) The written description of the boundaries shall be 597-17 certified by the commissioner of the General Land Office, approved 597-18 by the commission or its predecessor agency, and recorded in the 597-19 minutes of the authority. 597-20 (c) The board shall cause a copy of the certified boundaries 597-21 to be filed and recorded in the office of the county clerk of each 597-22 county lying in whole or in part within the boundaries of the 597-23 authority. The board shall also file a copy of the certified 597-24 boundaries, together with a map showing the boundaries, with the 597-25 tax assessor and collector of each of the counties that lie in 597-26 whole or in part within the authority. 598-1 Sec. 272.004. EFFECT OF CHANGE OF NAME OF AUTHORITY. 598-2 (a) All laws applicable to the San Jacinto River Conservation and 598-3 Reclamation District and all contracts and bonds or other 598-4 debentures effected under that name are applicable to the San 598-5 Jacinto River Authority. 598-6 (b) Wherever the name San Jacinto River Conservation and 598-7 Reclamation District or any reference to that district appears in 598-8 any law or in any court decision, the name and reference shall mean 598-9 and apply to the San Jacinto River Authority. 598-10 (c) All grants and donations of state ad valorem taxes made 598-11 by the state to the San Jacinto River Conservation and Reclamation 598-12 District and all appropriations and benefits under those grants and 598-13 donations are available to and apply to the San Jacinto River 598-14 Authority. 598-15 (d) The change in name of the authority in no way affects 598-16 the organization, authority, functions, or powers previously 598-17 conferred by law and as expressly authorized in the provisions of 598-18 Section 59, Article XVI, Texas Constitution. 598-19 Sec. 272.005. SPECIFIC POWERS. The authority, in addition 598-20 to possessing all powers expressly or impliedly granted by other 598-21 sections of this chapter, by complying where applicable with the 598-22 provisions of this code may: 598-23 (1) store, control, and conserve the storm waters and 598-24 floodwaters of the watershed of the San Jacinto River and its 598-25 tributaries and prevent the escape of any such waters through every 598-26 practical means in order to prevent the devastation of lands from 599-1 recurrent overflows and to protect life and property; 599-2 (2) provide through every practical means for the 599-3 control, utilization, and coordination of regulation of the waters 599-4 of the San Jacinto River and its tributaries; 599-5 (3) appropriate the waters of the San Jacinto River 599-6 and its tributaries, construct dams and other facilities for the 599-7 impoundment, conservation, diversion, and utilization of such 599-8 waters, and devote waters to municipal, domestic, agricultural, 599-9 commercial, industrial, mining, and other beneficial uses, within 599-10 and outside the watershed of the river; 599-11 (4) provide waters for the irrigation of lands where 599-12 irrigation is required for agricultural purposes or may be 599-13 considered helpful to more profitable agricultural production; 599-14 (5) provide water for domestic, municipal, commercial, 599-15 industrial, and mining purposes within and outside the watershed of 599-16 the river, including water supplies for cities, towns, and 599-17 industries, and in connection with those purposes may construct or 599-18 otherwise acquire water transportation, treatment, and distribution 599-19 facilities and supplemental sources of supply; 599-20 (6) encourage and develop drainage systems and 599-21 provisions for the drainage of lands in the valleys of the San 599-22 Jacinto River and its tributaries needing drainage for profitable 599-23 agricultural production and the drainage of other lands in the 599-24 watershed area of the authority requiring drainage for the most 599-25 advantageous use; 599-26 (7) encourage through practical and legal means the 600-1 conservation of soils against destructive erosion and prevent the 600-2 increased flood danger caused by soil erosion; 600-3 (8) forest and reforest and aid in the foresting and 600-4 reforesting of the watershed area of the San Jacinto River and its 600-5 tributaries and may prevent and aid in the prevention of soil 600-6 erosion and floods in, on, and upon all lands situated within the 600-7 boundaries of the authority; 600-8 (9) control, store, and employ the waters of the San 600-9 Jacinto River and its tributaries in the development and 600-10 distribution of hydroelectric power, where such use may be 600-11 economically coordinated with other and superior uses and 600-12 subordinated to the uses declared by law to be superior; 600-13 (10) encourage, aid, and protect navigation and harbor 600-14 improvements; 600-15 (11) acquire land adjacent to or in the vicinity of 600-16 any waters impounded by the authority or adjacent to or in the 600-17 vicinity of the San Jacinto River or any of its tributaries for 600-18 park and recreation purposes and acquire or construct park and 600-19 recreation facilities on such land; provided, however, that except 600-20 as may otherwise be provided by general law, the acquisition or 600-21 construction of any recreation and park facilities by the authority 600-22 shall be subject to the approval of the Parks and Wildlife 600-23 Commission and to such conditions as the Parks and Wildlife 600-24 Commission may prescribe; 600-25 (12) acquire or construct facilities for the 600-26 gathering, transporting, treating, and disposing of sewage and 601-1 industrial waste and effluent; 601-2 (13) control, store, and employ the waters of the San 601-3 Jacinto River and its tributaries for every purpose for which such 601-4 waters, when controlled and conserved, may be utilized in the 601-5 performance of a useful service as contemplated and authorized by 601-6 the provisions of the Texas Constitution and the public policy it 601-7 declares; 601-8 (14) construct and otherwise acquire and repair, 601-9 improve, extend, operate, and maintain all works, plants, and other 601-10 facilities necessary or useful in the furtherance of any power 601-11 granted by law to the authority, including water storage 601-12 reservoirs, dams, canals, waterways, and water transportation 601-13 facilities of all kinds, water treatment facilities, hydroelectric 601-14 facilities, municipal water supply facilities, facilities for the 601-15 treatment of sewage and industrial waste and effluent, parks and 601-16 recreation facilities, and all other necessary and useful 601-17 structures, facilities, and equipment; 601-18 (15) enter into necessary and proper contracts with 601-19 other state or federal agencies, districts, bodies politic and 601-20 corporate, and others and may make and enter into cooperative and 601-21 coordinative contracts with such agencies, districts, bodies 601-22 politic and corporate, and others necessary or useful in the 601-23 furtherance of any power granted by law to the authority, including 601-24 the power to pledge the authority's funds and its other assets or 601-25 any part of such funds or assets; 601-26 (16) acquire any properties necessary for any of the 602-1 authority's corporate purposes by purchase, by condemnation as 602-2 provided by this chapter, or by gift and may acquire property by 602-3 lease or other contract, on such terms as may be agreed by the 602-4 board; 602-5 (17) operate the water and sewage properties and 602-6 facilities of other public bodies or political subdivisions on such 602-7 terms as the authority may agree in connection with the supplying 602-8 by the authority of any water or sewage or waste disposal or other 602-9 services to public bodies; 602-10 (18) enter into such contracts, on such terms, and for 602-11 such periods as the board approves, with municipalities or other 602-12 corporate bodies or persons, public or private, for the purpose of 602-13 establishing and collecting, and by resolution or order to 602-14 otherwise establish and collect, rates and other charges for the 602-15 sale or use of water, water transmission, treatment or connection 602-16 facilities, sewage or industrial or other waste disposal services 602-17 and facilities of all types, park or recreation facilities, power, 602-18 electric energy, and any other services sold, furnished, or 602-19 supplied by the authority, which rates and charges shall be 602-20 sufficient to produce revenue adequate to: 602-21 (A) pay expenses necessary to operate and 602-22 maintain the properties and facilities of the authority; 602-23 (B) pay the interest on or the principal of any 602-24 bonds or other obligations issued by the authority when and as the 602-25 interest or principal becomes due and payable and to fulfill any 602-26 reserve or other fund obligations of the authority in connection 603-1 with such bonds; and 603-2 (C) pay such other expenses the board determines 603-3 necessary and proper for any purpose in the corporate operations 603-4 and functions of the authority; and 603-5 (19) authorize by contract any other districts, 603-6 agencies, bodies politic and corporate, and individuals to 603-7 participate in the joint construction, operation, and maintenance 603-8 of water storage reservoirs, dams, canals, waterways, and water 603-9 lines and all other structures, facilities, and equipment in 603-10 connection with such reservoirs, dams, canals, waterways, and water 603-11 lines or in connection with sewage or waste facilities of all types 603-12 and all necessary facilities for the manufacture, sale, and 603-13 transportation of hydroelectric power, and by such contracts allow 603-14 such other agencies, districts, bodies politic and corporate, and 603-15 others to receive such portion of the revenues derived from the 603-16 sale of water and hydroelectric power or from furnishing sewage and 603-17 waste facilities and services as the board determines just, 603-18 equitable, and proper. 603-19 Sec. 272.006. LIMITATION OF AUTHORITY; COMMISSION 603-20 SUPERVISION. (a) The powers and duties granted to the authority 603-21 by this chapter are subject to all legislative declarations of 603-22 public policy in the maximum utilization of the storm waters, 603-23 floodwaters, and unappropriated flow waters of the state for the 603-24 purpose for which the authority is created, as expressed and 603-25 indicated in this chapter and subject to the continuing rights of 603-26 supervision by the state, which shall be exercised through the 604-1 commission. 604-2 (b) The commission is charged with the authority and duty to 604-3 approve, or to refuse to approve, the adequacy of any plan or plans 604-4 devised in the exercise of any power granted under this chapter 604-5 that contemplate improvements or facilities, the plans pertaining 604-6 to which are required to be supervised or approved by the 604-7 commission under the provisions of general law. 604-8 (c) If the plans described by Subsection (b) contemplate the 604-9 installation, construction, or other acquisition of parks and 604-10 recreation facilities or of facilities for the gathering, 604-11 transporting, or disposal of sewage or industrial wastes and 604-12 effluent, the commission shall not approve the plans unless it 604-13 finds that the Parks and Wildlife Commission has issued such 604-14 approvals or permits relating to the matters as may be required by 604-15 this chapter or general law. 604-16 Sec. 272.007. BOARD OF DIRECTORS. (a) The management and 604-17 control of the affairs of the authority are vested in, and the 604-18 powers, rights, privileges, and functions of the authority are 604-19 exercised by, a board of directors. The board consists of six 604-20 directors, all of whom must be freehold property taxpayers and 604-21 legal voters of the state. 604-22 (b) Directors are appointed by the Texas Water Development 604-23 Board and serve for staggered terms of six years, holding office 604-24 after their appointment and qualification until their successors 604-25 are appointed and have qualified. If a vacancy occurs on the 604-26 board, the vacancy is filled by the Texas Water Development Board 605-1 for the unexpired term. The provisions of Section 49.103 regarding 605-2 the election and terms of directors do not apply to directors of 605-3 the authority. 605-4 (c) Within 30 days after appointment, a director shall 605-5 qualify by taking the official oath required of county 605-6 commissioners and shall execute bond in the sum of $5,000 payable 605-7 to the authority. The sufficiency of the bond shall be determined 605-8 by the Texas Water Development Board. The bonds shall be recorded 605-9 in the official bond records of the county in which the authority 605-10 maintains its office and shall be deposited with the depository 605-11 selected and approved for the deposit of the funds of the 605-12 authority. 605-13 (d) The board shall elect from among its members a 605-14 president, vice president, secretary, and treasurer. The president 605-15 presides at all meetings of the board and is the chief executive 605-16 officer of the authority. The vice president acts as president in 605-17 case of the absence or disability of the president. The secretary 605-18 shall keep a record of all proceedings and all orders of the board. 605-19 The treasurer shall receive and receipt for all funds received by 605-20 the authority and shall keep books and records of all funds 605-21 received and expended. In case of the absence or inability of the 605-22 secretary to act, a secretary pro tempore shall be selected by the 605-23 board. 605-24 (e) Four members, including the presiding officer, 605-25 constitute a quorum to transact business. 605-26 Sec. 272.008. OFFICE; MEETINGS; ACCOUNTS. (a) The domicile 606-1 of the authority is in the city of Conroe, Montgomery County, where 606-2 the authority shall maintain its principal office. 606-3 (b) The board may set the time, place, and number of 606-4 meetings of the board by proper resolutions, regulations, and 606-5 bylaws passed by the board. 606-6 (c) The board shall keep complete and accurate accounts 606-7 conforming to approved methods of bookkeeping. The accounts and 606-8 all contracts, documents, and records of the authority shall be 606-9 kept at the principal office and shall be open to public inspection 606-10 at all reasonable times. 606-11 Sec. 272.009. GENERAL POWERS. (a) The board has all 606-12 powers, both express and implied, to do and perform any and all 606-13 acts for and on behalf of the authority that are authorized by the 606-14 constitution and laws of the United States and the state for the 606-15 purpose of achieving the plans and purposes intended in the 606-16 creation of the authority and in the exercise of all powers granted 606-17 to the authority by this chapter. The board has full and complete 606-18 authority to do anything necessary or convenient to the exercise of 606-19 the powers, privileges, and functions conferred on the authority 606-20 and the board by this chapter or any other law. 606-21 Sec. 272.010. SURVEYS AND ENGINEERING INVESTIGATIONS. 606-22 (a) The board shall make or cause to be made surveys and 606-23 engineering investigations for the information of the authority and 606-24 shall determine the plans necessary to accomplish the purposes for 606-25 which the authority is created. The board may employ engineers, 606-26 attorneys, and all other technical and nontechnical assistants or 607-1 employees and set and provide the amount and manner of their 607-2 compensation for the making of surveys, the preparation of plans, 607-3 and the collection of data essential to the determination of the 607-4 character, extent, and cost of all improvements essential in the 607-5 exercise of any power granted by this chapter or by any other law 607-6 applicable to the authority, and for expenditures found essential 607-7 in the maintenance and administration of the authority. 607-8 Sec. 272.011. DIRECTOR FEES. Directors are entitled to 607-9 receive a per diem of not more than $25 per day for the period 607-10 served, together with traveling and other necessary expenses. A 607-11 director may perform any service required by the board but may not 607-12 receive the per diem and other compensation at the same time. 607-13 Sec. 272.012. BONDS AS AUTHORIZED INVESTMENT; INVESTMENT OF 607-14 FUNDS. (a) All bonds issued by the authority are legal and 607-15 authorized investments for banks, savings banks, trust companies, 607-16 building and loan associations, insurance companies, fiduciaries 607-17 and trustees and for the sinking funds of cities, towns, villages, 607-18 counties, school districts, and other political corporations and 607-19 subdivisions of the state. Bonds issued by the authority are 607-20 eligible to secure the deposit of all public funds of the state and 607-21 all public funds of cities, towns, villages, counties, school 607-22 districts, and other political corporations or subdivisions of the 607-23 state and shall be lawful and sufficient security for such deposits 607-24 at their market value when accompanied by all unmatured coupons. 607-25 (b) Money in any fund of the authority or any fund 607-26 established by the board in connection with the authorization of 608-1 bonds, including proceeds from the sale of bonds, and which funds 608-2 are not needed to satisfy their particular purpose for any period, 608-3 may be invested or reinvested in direct obligations of or 608-4 obligations whose principal and interest are guaranteed by the 608-5 United States or invested in direct obligations of or participation 608-6 certificates guaranteed by the Federal Intermediate Credit Banks, 608-7 Federal Land Banks, the Federal National Mortgage Association, 608-8 Federal Home Loan Banks, and Banks for Cooperatives and in 608-9 certificates of deposit of any bank or trust company whose deposits 608-10 are fully secured by a pledge of securities of any of the kind 608-11 specified in this section. 608-12 (c) The type and maturity of investments made under this 608-13 section shall be determined by the board, which, in the case of 608-14 funds established in connection with the authorization of bonds, 608-15 shall provide appropriate recitals with regard to such investments 608-16 in the resolutions relating to the issuance of the bonds. Income 608-17 and profits on such investments shall be applied as provided in the 608-18 resolution and, absent such provision, shall be applied to the uses 608-19 specified by this section for bond proceeds. 608-20 Sec. 272.013. FUNDS FOR SURVEYS AND DATA COLLECTION. For 608-21 the purpose of providing funds requisite to procure necessary 608-22 engineering surveys and the collection and compilation of data 608-23 respecting regional and general conditions entering into and 608-24 influencing the character and extent of the improvements necessary 608-25 to the storage, control, conservation, and equitable distribution 608-26 of floodwaters, when stored and controlled, to the greatest public 609-1 advantage, the counties lying in whole or in part within the area 609-2 of the authority may from year to year contribute to the funds for 609-3 such engineering surveys and the compilation of data essential to 609-4 the progress of flood control improvement in such amount as may be 609-5 deemed an equitable part of the cost of such surveys and the 609-6 compilation of necessary information, in the estimated relation of 609-7 such expenditures to the contemplated and probable benefit to the 609-8 respective counties from the accomplishment of the plans and 609-9 purposes of the creation of the authority. For the provision of 609-10 such funds, the counties may make the necessary collections through 609-11 their respective general funds or may appropriate the amounts of 609-12 the estimated equitable contribution of such costs of developing 609-13 essential engineering data from their general fund. 609-14 Sec. 272.014. ADOPTION OF RULES; PENALTY; ENFORCEMENT. 609-15 (a) The board may adopt and enforce rules to: 609-16 (1) preserve and protect the sanitary condition and 609-17 prevent waste or unauthorized use of water owned or controlled by 609-18 the authority; 609-19 (2) preserve, protect, secure, and regulate privileges 609-20 on any authority property; and 609-21 (3) ensure the public safety on, in, under, across, or 609-22 within any authority property. 609-23 (b) A rule adopted under this section must clearly define 609-24 any conduct that constitutes an offense and plainly state the 609-25 punishment for the offense. In adopting a rule under this section, 609-26 the board must prescribe a punishment that is proportionate to the 610-1 seriousness of the offense. The board may designate an offense 610-2 only as a Class C misdemeanor. 610-3 (c) A rule adopted under this section does not take effect 610-4 until the authority has published once a week for two consecutive 610-5 weeks a substantive statement of the rule and the penalty for 610-6 violation of the rule in a newspaper with general circulation in 610-7 each county in which the rule is to be effective. The statement 610-8 must intelligently explain the purpose to be accomplished by or the 610-9 acts prohibited by the rule. The statement must advise the public 610-10 that violation of the rule will subject the violator to a penalty. 610-11 The statement must advise the public that the full text of the rule 610-12 is on file in the principal office of the authority and that any 610-13 interested person is entitled to read the full text. The board may 610-14 use one statement to satisfy the notice requirements of this 610-15 section for any number of rules the board adopts. The board may 610-16 amend a rule after the rule is adopted, but must meet the notice 610-17 requirements under this subsection. 610-18 (d) The violation of a rule is not punishable as an offense 610-19 unless the violation occurs after the 30th day after the date on 610-20 which the notice requirements under this section are met. A rule 610-21 adopted under this section is effective until repealed, revoked, 610-22 rescinded, or amended by official action of the board. 610-23 (e) A rule adopted under this section shall be recognized by 610-24 the courts of the state and is enforceable by complaint filed in 610-25 the appropriate court by the proper prosecuting authority in a 610-26 jurisdiction in which authority property is located in the same 611-1 manner as a penal statute under state law. A penalty provided by a 611-2 rule adopted under this section is in addition to any other penalty 611-3 provided by law. Rules promulgated under the authority of this 611-4 chapter shall not conflict with any provision of the Parks and 611-5 Wildlife Code or a rule adopted under the authority of the Parks 611-6 and Wildlife Code. 611-7 (f) The board, the commissioners court, and the law 611-8 enforcement officials in a county in which authority property is 611-9 located may enter into a contract to provide for the employment, 611-10 assignment, duties, equipping, or compensation of local law 611-11 enforcement personnel to enforce the board's rules. A contract 611-12 under this subsection may require the authority to pay to the 611-13 commissioners court a specified portion of the cost of providing 611-14 the law enforcement personnel. 611-15 (g) In this section, "authority property" means any land, 611-16 easement, water, property, equipment, work, or facility owned or 611-17 controlled, in whole or in part, by the authority, including a 611-18 reservoir, impoundment, lake, canal, channel, conduit, pipe, 611-19 siphon, dam, dike, levee, embankment, or berm but excluding Lake 611-20 Houston and the San Jacinto River below Lake Houston, except for 611-21 equipment, works, and facilities owned by the authority at or near 611-22 a dam site. 611-23 Sec. 272.015. ADDITIONAL POWERS AND DUTIES. (a) The 611-24 provisions of Title 4 apply to the authority, to the extent such 611-25 provisions are applicable and practicable, except that such 611-26 provisions do not apply to any matter specifically provided for in, 612-1 or expressly or impliedly excluded from, this chapter relating to 612-2 the creation of a district and to the issuance of preliminary bonds 612-3 to finance investigations on which to base a plan for improvements 612-4 and to the levy of a tax to retire the bonds. The authority may on 612-5 a vote of the qualified electors issue preliminary bonds for such 612-6 investigations and levy a tax to retire the bonds, which tax may be 612-7 in addition to all other taxes authorized by this chapter. 612-8 (b) Conflicting provisions of Sections 51.510-51.530 shall 612-9 not control the authority. 612-10 (c) After the completion and approval of a plan for the 612-11 coordination of improvements considered adequate to serve the 612-12 watershed of the San Jacinto River and its tributaries as a whole, 612-13 as provided for by this chapter, the commission and the reclamation 612-14 department of the General Land Office, in authorizing improvements 612-15 to control the waters of or in allocating the right to use waters 612-16 from the San Jacinto River and its tributaries, shall substantially 612-17 conform to, and shall effectually preserve the benefits of, the 612-18 plan formulated by the authority, and the authority shall have the 612-19 right to enforce the observance of the plan by judicial decree. 612-20 (d) The authority may provide and maintain improvements for 612-21 the common benefit of the authority as a whole, subject only to 612-22 constitutional and statutory provisions concerning a vote by the 612-23 qualified electors of the authority. 612-24 (e) The authority may exercise the powers contained in 612-25 Sections 51.510-51.530 relating to improvements peculiar to defined 612-26 areas within a district. 613-1 (f) If the electors of a defined area within the authority 613-2 desire, the electors may create a water control and improvement 613-3 district for the purpose of independently providing, operating, and 613-4 maintaining improvements designed peculiarly to serve that defined 613-5 area. The contained defined area may be created under the 613-6 applicable provisions of Title 4. In like manner, any other 613-7 political subdivision of the state located in whole or in part in 613-8 the authority may independently provide, maintain, and operate 613-9 works peculiarly designed to benefit that political subdivision. 613-10 The improvements or works of the defined area or political 613-11 subdivision shall be constructed and operated in a manner that 613-12 conforms to the authority's plan described under Subsection (a) to 613-13 the greatest practicable degree. 613-14 (g) To the extent necessary to enable the authority to 613-15 construct, maintain, and operate works beneficial to the authority 613-16 as a whole, to supervise, to perform any service inuring to the 613-17 benefit of the authority as a whole, and to provide funds adequate 613-18 to defray the cost of the administration to the authority, the 613-19 authority may levy and collect taxes, equitably distributed. The 613-20 taxes shall be in addition to other taxes that may lawfully be 613-21 levied by the state and other political subdivisions of the state. 613-22 (h) The authority may do all things necessary or suitable 613-23 for the prevention of recurrent, devastating floods in the valley 613-24 of the San Jacinto River. 613-25 Sec. 272.016. CONTRACTS, GRANTS, AND LOANS. The board is a 613-26 state agency and has full authority to negotiate and contract with 614-1 the United States, or any of its agencies, and others for grants, 614-2 loans, or allotments. The authority may receive and accept grants, 614-3 loans, or allotments from the United States or others for the 614-4 purpose of making investigations and assembling data or for any 614-5 purpose set forth in this chapter and may receive and use the 614-6 grants, loans, or allotments for the purposes provided in this 614-7 chapter. 614-8 Sec. 272.017. BOND ELECTION REQUIRED. The authority may not 614-9 issue bonds, incur any form of continuing obligations or 614-10 indebtedness for purposes of effecting improvements comprehended in 614-11 the plan of organization and administration of the authority or 614-12 incur any indebtedness in the form of a continuing charge on land 614-13 or properties within the authority unless such proposition has been 614-14 submitted to the qualified voters of the authority, or when 614-15 appropriate, the voters of a defined area or political subdivision 614-16 within the authority, and approved by a majority of those voting on 614-17 the proposition. 614-18 Sec. 272.018. ISSUANCE OF BONDS. (a) The authority may 614-19 issue negotiable revenue bonds for the purposes of: 614-20 (1) making investigations and assembling data; 614-21 (2) purchasing, acquiring, or condemning lands, 614-22 easements, rights-of-way, and other properties; 614-23 (3) constructing, repairing, improving, and extending 614-24 any structures, dams, reservoirs, transmission facilities, water 614-25 treatment and water supply facilities, and sewage and other waste 614-26 gathering, transmission, treatment, and disposal facilities; 615-1 (4) developing park and recreation facilities; and 615-2 (5) acquiring, constructing, improving, repairing, and 615-3 extending any other properties and facilities considered 615-4 appropriate by the board in the exercise of powers granted the 615-5 authority in Section 272.005 and elsewhere in this chapter. 615-6 (b) Any of the purposes described by this section may be 615-7 combined into a single issue of bonds. The bonds shall be issued 615-8 in accordance with Subsection (d) and (e) and may be secured by and 615-9 payable from the revenues of the authority permitted by Subsection 615-10 (f), including the proceeds of one or more contracts between the 615-11 authority and any persons, firms, corporations, cities, and 615-12 political subdivisions. 615-13 (c) If the legislature remits the ad valorem tax in the 615-14 counties for a certain period of years, the board may, if necessary 615-15 and with the approval of the commissioners court of the counties in 615-16 the watershed, use part or all of the taxes remitted to the 615-17 counties for the purpose of paying back to the United States or its 615-18 agencies or others the money borrowed by the authority for the 615-19 purposes described by this section. 615-20 (d) The bonds issued under this chapter may be: 615-21 (1) sold for cash, at public or private sale, at such 615-22 price or prices as the board determines, but not for less than par 615-23 plus accrued interest, provided that the interest cost of the money 615-24 received, computed to maturity in accordance with the standard 615-25 bonds tables in general use by banks and insurance companies, does 615-26 not exceed five percent per year; 616-1 (2) issued on terms the board considers necessary or 616-2 convenient for any corporate purpose; or 616-3 (3) issued to refund bonds issued under this chapter. 616-4 (e) Bonds of the authority must be authorized by resolution 616-5 of the board concurred in by a majority of the directors. The 616-6 bonds shall bear such date or dates; be made at such time or times; 616-7 bear interest at such rate or rates, not exceeding five percent per 616-8 year, payable annually or semiannually; be in such denominations; 616-9 be in such form, either coupon or registered; carry such 616-10 registration privileges as to principal only or as to both 616-11 principal and interest and as to exchange of coupon bonds for 616-12 registered bonds, or vice versa, or exchange of bonds of one 616-13 denomination for bonds of other denominations; be executed in such 616-14 manner; and be payable at such place or places, within or outside 616-15 the state, as the resolution may provide. 616-16 (f) The resolution authorizing the issuance of bonds may 616-17 contain provisions, which shall be part of the contract between the 616-18 board and the initial and successive holders of the bonds: 616-19 (1) reserving the right to redeem the bonds at such 616-20 time or times, in such amounts, and at such prices, not exceeding 616-21 102 percent of the principal amount of the bonds plus accrued 616-22 interest, as may be provided in the resolution; 616-23 (2) providing for the setting aside of sinking funds 616-24 or reserve funds and the regulation and disposition of the funds; 616-25 (3) pledging, to secure the payment of the principal 616-26 of and interest on the bonds and the sinking fund or reserve fund 617-1 payments agreed to be made with respect to the bonds, all or part 617-2 of the funds that may be donated or granted by the state as 617-3 provided by this chapter and all or part of the gross or net 617-4 revenues received by the authority with respect to the property, 617-5 real, personal, or mixed, to be acquired or constructed with the 617-6 bonds or with proceeds of the bonds, or all or part of the gross or 617-7 net revenues received by the authority from any source; 617-8 (4) prescribing the purposes to which the bonds or 617-9 bonds later issued, or the proceeds of the bonds, may be applied; 617-10 (5) agreeing to set and collect rates and charges 617-11 sufficient to produce revenues that, together with the funds that 617-12 may be granted or donated by the state, are adequate to pay the 617-13 items specified by this chapter, and prescribing the use and 617-14 disposition of all revenues; 617-15 (6) prescribing limitations on the issuance of 617-16 additional bonds and on the agreements that may be made with the 617-17 purchaser and successive bondholders; 617-18 (7) relating to the construction, extension, 617-19 improvement, operation, maintenance, depreciation, replacement, and 617-20 betterments of the properties of the authority and to the carrying 617-21 of insurance on all or part of the property covering loss or damage 617-22 or loss of use and occupancy resulting from specified risks; 617-23 (8) fixing the procedure, if any, by which, if the 617-24 authority so desires, the terms of any contract with the holders of 617-25 the bonds may be amended or abrogated, the amount of bonds whose 617-26 holders must consent to the amendment or abrogation, and the manner 618-1 in which such consent shall be evidenced; 618-2 (9) providing for the execution and delivery by the 618-3 authority to a bank or trust company authorized by law to accept 618-4 trusts, or to the United States or any officer or agency of the 618-5 United States, of indentures or agreements authorized by this 618-6 chapter to be made with or for the benefit of the holders of the 618-7 bonds and such other provisions as may be contained in such 618-8 indentures or agreements; and 618-9 (10) making such other provisions, not inconsistent 618-10 with provisions of this chapter, as the board may approve. 618-11 Sec. 272.019. DEFAULT PROCEDURES. (a) A resolution 618-12 authorizing the issuance of bonds and any indenture or agreement 618-13 entered into pursuant to the resolution may include provisions 618-14 regarding a default on the: 618-15 (1) payment of the interest on any bonds as the 618-16 interest becomes due and payable; 618-17 (2) payment of the principal of any bonds as they 618-18 become due and payable, whether at maturity, by call for 618-19 redemption, or otherwise; or 618-20 (3) performance of an agreement made with the 618-21 purchasers or successive holders of any bonds. 618-22 (b) If a default described by Subsection (a) has occurred 618-23 and has continued for the period, if any, prescribed by the 618-24 resolution authorizing the issuance of the bonds, the trustee under 618-25 the indenture or indentures entered into with respect to the bonds 618-26 authorized by the resolution, or, if there is no indenture, a 619-1 trustee appointed in the manner provided in the resolution by the 619-2 holders of 25 percent in aggregate principal amount of the bonds 619-3 authorized by the resolution and then outstanding, may, and on the 619-4 written request of the holders of 25 percent in aggregate principal 619-5 amount of the bonds authorized by the resolution and then 619-6 outstanding shall, in the trustee's own name but for the equal and 619-7 proportionate benefit of the holders of all the bonds and, with or 619-8 without having possession of the bonds, for the holders of all the 619-9 bonds: 619-10 (1) by mandamus or suit, action, or proceeding at law 619-11 or in equity, enforce all rights of the holders of the bonds; 619-12 (2) bring suit on the bonds or the appurtenant 619-13 coupons; 619-14 (3) by action or suit in equity, require the board to 619-15 act as if it were the trustee of an express trust for the holders 619-16 of the bonds; 619-17 (4) by action or suit in equity, enjoin anything that 619-18 may be unlawful or in violation of the rights of the holders of the 619-19 bonds; or 619-20 (5) after such notice to the board as the resolution 619-21 may provide, declare the principal of all of the bonds due and 619-22 payable, and if all defaults have been made good, then with the 619-23 written consent of the holders of 25 percent aggregate principal 619-24 amount of the bonds then outstanding, annul the declaration and its 619-25 consequences; provided, however, that the holders of more than a 619-26 majority in principal amount of the bonds authorized by the 620-1 resolution and then outstanding shall, by written instrument 620-2 delivered to the trustee, have the right to direct and control any 620-3 and all actions taken or to be taken by the trustee under this 620-4 section. 620-5 (c) A resolution, indenture, or agreement relating to bonds 620-6 may provide that in a suit, action, or proceeding under this 620-7 section, the trustee, whether or not all of the bonds have been 620-8 declared due and payable and with or without possession of any of 620-9 the bonds, shall be entitled as of right to the appointment of a 620-10 receiver who may enter and take possession of all or any part of 620-11 the properties of the authority and operate and maintain the 620-12 properties and set, collect, and receive rates and charges that, 620-13 together with the funds that may be granted or donated by the 620-14 state, will be sufficient to provide revenues adequate to pay the 620-15 items set forth in this chapter and the costs and disbursements of 620-16 the suit, action, or proceeding and apply such revenue in 620-17 conformity with the provisions of this chapter and the resolution 620-18 or resolutions authorizing the bonds. 620-19 (d) In any suit, action, or proceeding by a trustee or 620-20 receiver, if any, under this section, counsel fees and expenses of 620-21 the trustee and of the receiver or receivers, if any, shall 620-22 constitute taxable disbursements, and all costs and disbursements 620-23 allowed by the court shall be a first charge on any revenue pledged 620-24 to secure the payment of the bonds. 620-25 (e) In addition to the powers specifically provided by this 620-26 section, the trustee shall have and possess all powers necessary or 621-1 appropriate for the exercise of the powers specifically provided or 621-2 incident to the general representation of the bondholders in 621-3 enforcement of their rights. 621-4 Sec. 272.020. BOND APPROVAL AND REGISTRATION. (a) Before 621-5 any bonds may be sold by the authority, a certified copy of the 621-6 proceedings for the issuance of the bonds, including the form of 621-7 the bonds, together with any other information the attorney general 621-8 may require, shall be submitted to the attorney general, and if the 621-9 attorney general finds that the bonds have been issued in 621-10 accordance with law and approves the bonds, the attorney general 621-11 shall execute a certificate to that effect which shall be filed in 621-12 the office of the comptroller and be recorded in a record kept for 621-13 that purpose. Bonds may not be issued until the bonds have been 621-14 registered by the comptroller, who shall register the bonds if the 621-15 attorney general has filed with the comptroller the certificate 621-16 approving the bonds and the proceedings for the issuance of the 621-17 bonds as provided in this subsection. 621-18 (b) Bonds approved by the attorney general and registered by 621-19 the comptroller as provided by this section and issued in 621-20 accordance with the proceedings so approved are valid and binding 621-21 obligations of the authority and are incontestable for any cause 621-22 after their registration. 621-23 Sec. 272.021. OIL AND GAS LEASES. The authority may enter 621-24 into oil and gas leases with respect to its properties on terms the 621-25 board determines appropriate in the production of revenues to the 621-26 authority. 622-1 Sec. 272.022. DISPOSAL OF AUTHORITY PROPERTY. The authority 622-2 may sell or otherwise dispose of its properties if the board has 622-3 determined that the property or interest to be disposed of is not 622-4 necessary to the business of the authority and has approved the 622-5 terms of the sale. 622-6 Sec. 272.023. EXEMPTION OF AUTHORITY PROPERTY FROM FORCED 622-7 SALE. Property of the authority is exempted from forced sale under 622-8 any judgment, suit, or proceeding of any nature or kind. 622-9 Sec. 272.024. ACQUISITION AND USE OF PROPERTY. The 622-10 authority may acquire by purchase, lease, or gift or in any other 622-11 manner, other than by condemnation, and may maintain, use, and 622-12 operate property of any kind, real, personal, or mixed, or any 622-13 interest in such property, within or outside the boundaries of the 622-14 authority, necessary or convenient to the exercise of the powers, 622-15 rights, privileges, and functions conferred on the authority by 622-16 this chapter. 622-17 Sec. 272.025. EMINENT DOMAIN. (a) The authority has the 622-18 power and right of eminent domain for the purpose of acquiring by 622-19 condemnation property of any kind, real, personal, or mixed, or any 622-20 interest in such property, within or outside the boundaries of the 622-21 authority (other than such property or interest in such property 622-22 outside the boundaries of the authority that may at the time be 622-23 owned by any body politic) necessary or convenient to the exercise 622-24 of the powers, rights, privileges, and functions conferred on the 622-25 authority by this chapter in the manner provided by general law 622-26 with respect to condemnation or, at the option of the authority, in 623-1 the manner provided by statutes relative to condemnation by 623-2 districts organized under general law pursuant to Section 59, 623-3 Article XVI, Texas Constitution. 623-4 (b) In condemnation proceedings being prosecuted by the 623-5 authority, the authority shall not be required to give bond for 623-6 appeal or bond for costs. 623-7 (c) The authority may overflow and inundate public lands and 623-8 public property and require the relocation of roads and highways in 623-9 the manner and to the extent permitted to districts organized under 623-10 general law pursuant to Section 59, Article XVI, Texas 623-11 Constitution. 623-12 (d) If, in the exercise of the power of eminent domain, the 623-13 relocation or change of grade of any railroad facilities is 623-14 required, the relocation or change of grade shall be accomplished 623-15 under the provisions of Section 49.223. 623-16 Sec. 272.026. RULES AND REGULATIONS. The board may make all 623-17 necessary rules and regulations for the government and control of 623-18 the authority not inconsistent with the constitution and laws of 623-19 the state. 623-20 Sec. 272.027. USE OF SAN JACINTO RIVER AND TRIBUTARIES. In 623-21 the prosecution of the plans for which the authority has been 623-22 created for storing, controlling, conserving, and distributing for 623-23 useful purposes the storm waters and floodwaters of the San Jacinto 623-24 River watershed, the authority may make use of the bed and banks of 623-25 the San Jacinto River and of its tributaries for any purposes 623-26 necessary to the accomplishment of the plans of the authority. 624-1 Sec. 272.028. CONFLICTS. Nothing in this chapter shall be 624-2 construed to violate any provision of the federal or state 624-3 constitutions, and all acts done under this chapter shall be done 624-4 in a manner that conforms to those constitutions, whether expressly 624-5 provided or not. If any procedure under this chapter is held by 624-6 any court to be violative of either of those constitutions, the 624-7 authority may by resolution provide an alternative procedure 624-8 conformable with those constitutions. 624-9 CHAPTER 273. SULPHUR RIVER BASIN AUTHORITY 624-10 Sec. 273.001. CREATION. (a) A conservation and reclamation 624-11 district to be known as the "Sulphur River Basin Authority" is 624-12 created. The authority is a governmental agency and a body politic 624-13 and corporate. 624-14 (b) The authority is created under and is essential to 624-15 accomplish the purposes of Section 59, Article XVI, Texas 624-16 Constitution. 624-17 (c) The authority may not levy any taxes or create any debt 624-18 payable out of taxation. 624-19 (d) The authority may exercise all the rights and powers of 624-20 an independent agency and body politic and corporate to construct, 624-21 maintain, and operate inside the state and in the watershed of the 624-22 Sulphur River and its tributaries, inside or outside the boundaries 624-23 of the authority, any works considered essential to the operation 624-24 of the authority and for its administration in controlling, 624-25 storing, preserving, and distributing the water of the Sulphur 624-26 River and its tributary streams, including the storm water and 625-1 floodwater. The authority may exercise the power of control and 625-2 regulation over the water of the Sulphur River and its tributaries 625-3 as may be exercised by the state, subject to the constitution and 625-4 the laws of this state. 625-5 Sec. 273.002. DEFINITIONS. In this chapter: 625-6 (1) "Authority" means the Sulphur River Basin 625-7 Authority. 625-8 (2) "Basin" means the watersheds of the Sulphur River 625-9 within the boundaries of the authority as defined in Section 625-10 273.003. 625-11 (3) "Board" means the board of directors of the 625-12 authority. 625-13 (4) "Director" means a member of the board. 625-14 (5) "Person" means an individual, corporation, 625-15 organization, public agency, business trust, estate, trust, 625-16 partnership, association, and any other legal entity. 625-17 (6) "Public agency" means any government or 625-18 governmental subdivision or agency. 625-19 (7) "State" means the State of Texas or any of its 625-20 agencies, departments, boards, political subdivisions, or other 625-21 entities. 625-22 (8) "United States" includes any department, bureau, 625-23 and other agency of the United States. 625-24 (9) "Waste" means sewage, industrial waste, municipal 625-25 waste, recreational waste, agricultural waste, waste heat, solid 625-26 waste, or any other waste. 626-1 Sec. 273.003. BOUNDARIES. (a) The authority is composed of 626-2 the territory in each county in Texas, other than Fannin County, 626-3 that is located in whole or in part within the watershed of the 626-4 Sulphur River and its tributaries with confluences with the Sulphur 626-5 River upstream from the eastern boundary of Texas, as those 626-6 watersheds and tributaries are defined by maps on file with the 626-7 Texas Water Development Board. 626-8 (b) The legislature finds that all of the land included in 626-9 the authority will benefit from the improvements to be acquired and 626-10 constructed by the authority. 626-11 Sec. 273.004. AUTHORITY PURPOSES. The purpose of this 626-12 chapter is to authorize the authority to provide for the 626-13 conservation and development of the state's natural resources 626-14 within the basin of Sulphur River, including: 626-15 (1) the control, storage, preservation, and 626-16 distribution of the state's water for domestic and municipal uses, 626-17 industrial uses, irrigation, mining and recovery of minerals, stock 626-18 raising, groundwater recharge, electric power generation, 626-19 navigation, recreation and pleasure, and other beneficial uses and 626-20 purposes; 626-21 (2) the reclamation and irrigation of land needing 626-22 irrigation; 626-23 (3) the reclamation and drainage of overflowed land 626-24 and other land needing drainage; 626-25 (4) the maintenance and enhancement of the quality of 626-26 the water; 627-1 (5) the conservation and development of the forests, 627-2 water, and hydroelectric power; 627-3 (6) the navigation of inland water; and 627-4 (7) the provision of systems, facilities, and 627-5 procedures for the collection, transportation, handling, treatment, 627-6 and disposal of waste of all types. 627-7 Sec. 273.005. CONSTRUCTION OF CHAPTER. This chapter shall 627-8 be liberally construed to achieve its purposes, and any particular 627-9 grant of power included in this chapter shall be held to specify 627-10 but not to limit general powers. This chapter is sufficient 627-11 authority for the performance of all acts and procedures authorized 627-12 by this chapter, without reference to any other law or any 627-13 restrictions or limitations included in any other law. 627-14 Sec. 273.006. BOARD OF DIRECTORS. (a) The authority shall 627-15 be governed by a board of directors composed of six members. The 627-16 directors are appointed by the governor with the advice and consent 627-17 of the senate. Two directors are appointed from each of the 627-18 following regions: 627-19 (1) Region 1: Bowie and Red River counties; 627-20 (2) Region 2: Cass, Franklin, Hunt, Morris, and Titus 627-21 counties; and 627-22 (3) Region 3: Delta, Hopkins, and Lamar counties. 627-23 (b) Each director must be a qualified elector and a resident 627-24 of a county in the region for which the director is appointed. 627-25 (c) Each director serves for a term of office as provided by 627-26 this subsection and until a successor has qualified. Directors 628-1 serve staggered terms of six years, with the terms of one-third of 628-2 the directors expiring February 1 of each odd-numbered year. 628-3 (d) Each director shall qualify by taking the constitutional 628-4 oath of office and by executing a bond in an amount determined by 628-5 the board conditioned on the faithful performance of the person's 628-6 duties as director. 628-7 (e) All vacancies on the board shall be filled in the manner 628-8 provided by this section for making the original appointment. 628-9 (f) The governor may remove a director from office for 628-10 inefficiency, neglect of duty, misconduct in office, or absence 628-11 from three consecutive regular meetings of the board. Before a 628-12 director is removed from office, the board shall call and hold a 628-13 hearing on the charges against the director, and the director who 628-14 is the subject of the proposed removal is entitled to appear at the 628-15 hearing and present evidence to show why the director should not be 628-16 removed from office. Not later than the 30th day before the date 628-17 of the hearing, the board shall give the accused director notice of 628-18 the charges against the director and the time and place for the 628-19 hearing. An affirmative vote of at least four of the directors is 628-20 required to approve a recommendation for removal. A recommendation 628-21 for removal shall be forwarded to the governor for the governor's 628-22 consideration and action as provided by this subsection. 628-23 (g) A majority of the members of the board constitutes a 628-24 quorum for the transaction of business. 628-25 (h) The board shall adopt and may amend necessary rules for 628-26 the conduct of the authority's business. 629-1 (i) The board shall elect a president, one or more vice 629-2 presidents, a secretary, a treasurer, and other officers as the 629-3 members of the board consider necessary. The president and vice 629-4 president must be directors, but other officers are not required to 629-5 be members of the board. The offices of the secretary and 629-6 treasurer may be combined, and the offices of assistant secretary 629-7 and assistant treasurer may be combined. 629-8 Sec. 273.007. INTEREST IN CONTRACT. A director who has a 629-9 financial interest in a contract of the authority for the purchase, 629-10 sale, lease, rental, or supply of property, including supplies, 629-11 materials, and equipment, or the construction of facilities shall 629-12 disclose that fact to the other members of the board and may not 629-13 vote on or participate in discussions during board meetings on the 629-14 acceptance of the contract. A financial interest of a director 629-15 does not affect the validity of a contract if disclosure is made 629-16 and the director with the financial interest does not vote on the 629-17 question of entering into the contract. 629-18 Sec. 273.008. DIRECTOR'S COMPENSATION. (a) A director is 629-19 entitled to receive $25 per day and reimbursement for actual and 629-20 necessary expenses incurred: 629-21 (1) for each day the director spends attending 629-22 meetings of the board; and 629-23 (2) for each day the director spends attending to 629-24 business of the authority that is authorized by the board. 629-25 (b) A director is not entitled to receive a per diem 629-26 allowance for more than 50 days in any single calendar year. 630-1 Sec. 273.009. COMMITTEES. The board may appoint or 630-2 establish committees from the membership of the board as necessary 630-3 or desirable in conducting the business of the authority. Subject 630-4 to the applicable rules of law on delegation of powers, the board 630-5 may assign or delegate or provide for the assignment or delegation 630-6 of any powers, duties, and functions to its committees as the board 630-7 may provide by rule or resolution. 630-8 Sec. 273.010. EXECUTIVE DIRECTOR. (a) By majority vote of 630-9 the qualified directors the board may employ an executive director 630-10 and set the executive director's salary and other compensation. 630-11 (b) The executive director is the chief executive officer of 630-12 the authority. 630-13 (c) Under policies established by the board, the executive 630-14 director is responsible to the board for: 630-15 (1) administering the directives of the board; 630-16 (2) keeping the authority's records, including minutes 630-17 of the meetings of the board and the executive committee; 630-18 (3) coordinating with state, federal, and local 630-19 agencies; 630-20 (4) developing plans and programs for the approval of 630-21 the board or the executive committee; 630-22 (5) hiring, supervising, training, and discharging the 630-23 authority's employees, as authorized by the board or the executive 630-24 committee; 630-25 (6) contracting for or retaining technical, 630-26 scientific, legal, fiscal, and other professional services, as 631-1 authorized by the board; and 631-2 (7) performing any other duties assigned by the board. 631-3 (d) The board may discharge the executive director on a 631-4 majority vote of the qualified directors. 631-5 Sec. 273.011. DIRECTORS' AND EMPLOYEES' BONDS. (a) The 631-6 executive director, the treasurer, and other officers, agents, and 631-7 employees of the authority who have responsibilities that involve 631-8 the collection, custody, or payment of any money of the authority 631-9 shall execute a fidelity bond. The board shall approve the form, 631-10 amount, and surety of the bond. 631-11 (b) The authority shall pay the premiums on the bonds 631-12 required under this chapter. 631-13 Sec. 273.012. PRINCIPAL OFFICE. The authority shall 631-14 maintain its principal office inside its boundaries. 631-15 Sec. 273.013. RECORDS. (a) The authority shall keep 631-16 complete and accurate accounts of its business transactions in 631-17 accordance with generally accepted methods of accounting. 631-18 (b) The authority shall keep complete and accurate minutes 631-19 of its meetings. 631-20 (c) The authority shall keep its accounts, contracts, 631-21 documents, minutes, and other records at its principal office. 631-22 (d) Except as otherwise required by law, the authority may 631-23 not disclose any records that it has relating to trade secrets or 631-24 the economics of operation of any business or industry. 631-25 (e) Except as provided by Subsection (d), the authority 631-26 shall permit reasonable public inspection of its records during 632-1 regular business hours under rules adopted by the board. 632-2 Sec. 273.014. SEAL. The authority shall adopt a seal. 632-3 Sec. 273.015. SUIT. (a) The authority may sue and be sued 632-4 in the name of the authority. 632-5 (b) Service of process may be accomplished by serving the 632-6 president or vice president of the board or the executive director. 632-7 (c) All courts of this state shall take judicial notice of 632-8 the establishment of the authority. 632-9 Sec. 273.016. GENERAL POWERS AND DUTIES. (a) The authority 632-10 shall administer this chapter and shall use its facilities and 632-11 powers to accomplish the purposes of this chapter. 632-12 (b) The authority may exercise the powers, rights, and 632-13 privileges necessary or convenient for accomplishing the purposes 632-14 of this chapter. 632-15 (c) The powers granted to the authority by this chapter are 632-16 cumulative of all powers granted by other laws that are applicable 632-17 to the authority. The powers granted to the authority by this 632-18 chapter are not intended to restrict the powers of any conservation 632-19 and reclamation district previously created within the basin or 632-20 area of the authority under Section 59, Article XVI, Texas 632-21 Constitution. It is the legislature's intent that the authority 632-22 and those districts exercise their respective powers in a 632-23 cooperative manner. 632-24 (d) A district previously created under Section 59, Article 632-25 XVI, or Sections 52(b)(1) and (2), Article III, Texas Constitution, 632-26 may coordinate its plans with the authority and may enter into 633-1 joint undertakings for the purposes for which the districts are 633-2 created. However, those undertakings must be approved by a 633-3 majority of the boards of directors of the district and of the 633-4 authority. 633-5 Sec. 273.017. CONTROL AND USE OF WATERS. (a) Subject to 633-6 the constitution and other laws of the state and the continuing 633-7 right of supervision of the state through the commission, the 633-8 authority may exercise authority over the storm water and 633-9 floodwater of the basin, subject to applicable provisions of this 633-10 code. 633-11 (b) The authority may exercise the powers of control and use 633-12 of the state's water in the following manner and for the following 633-13 purposes: 633-14 (1) to provide for the control and coordination of 633-15 water use in the basin as a unit; 633-16 (2) to provide by adequate organization and 633-17 administration for the preservation of the rights of the people of 633-18 the different sections of the basin in the beneficial use of water; 633-19 (3) to provide for conserving storm water, floodwater, 633-20 and unappropriated flow water of the basin, including the storage, 633-21 control, transportation, treatment, and distribution of that water, 633-22 and for the prevention of the escape of water without the maximum 633-23 of public service, the prevention of devastation of land from 633-24 recurrent overflows, and the protection of life and property in the 633-25 river basin from uncontrolled floodwater; 633-26 (4) to provide for the conservation of water essential 634-1 for domestic and other water uses of the people of the basin, 634-2 including necessary water supplies for cities, towns, and 634-3 industrial districts; 634-4 (5) to provide for the irrigation of land in the basin 634-5 where irrigation is required for agricultural purposes or is 634-6 considered helpful to more profitable agricultural production and 634-7 to provide for the equitable distribution of storm water, 634-8 floodwater, and unappropriated flow water to the regional potential 634-9 requirements for all uses; 634-10 (6) to provide for the encouragement and development 634-11 of drainage systems and provisions for drainage of land in the 634-12 valleys of the basin needing drainage for profitable agricultural 634-13 and livestock production and industrial activities and for other 634-14 drainage of land for the most advantageous use; 634-15 (7) to provide for the conservation of soil against 634-16 destructive erosion and to prevent the increased risk of flood 634-17 incident to erosion; 634-18 (8) to control and make available for use storm water, 634-19 floodwater, and unappropriated flow water, as authorized by the 634-20 commission, in the development of commercial and industrial 634-21 enterprises in all sections of the watershed area of the authority; 634-22 (9) to provide for the control, storage, and use of 634-23 storm water, floodwater, and unappropriated flow water in the 634-24 development and distribution of hydroelectric power, where this use 634-25 may be economically coordinated with other and superior uses and 634-26 subordinated to the uses declared by law to be superior; 635-1 (10) to provide for each purpose and use for which 635-2 storm water, floodwater, and unappropriated flow water when 635-3 controlled and conserved may be used in the performance of a useful 635-4 service as contemplated and authorized by the provisions of the 635-5 constitution and laws of the state; 635-6 (11) to control, store, and preserve the water of the 635-7 basin inside the boundaries of the authority for any useful 635-8 purpose; 635-9 (12) to use, distribute, and sell water for any 635-10 beneficial purpose inside and outside the authority; and 635-11 (13) to acquire water and water rights inside and 635-12 outside the authority. 635-13 (c) Plans and works provided by the authority or under 635-14 authorization of the authority should give primary consideration to 635-15 the necessary and potential needs for water by or within the 635-16 various areas within the watersheds of the basin. 635-17 (d) The authority shall adopt and implement a program of 635-18 water conservation consistent with rules and criteria duly adopted 635-19 and enforceable by the commission for similarly situated 635-20 authorities. A program of water conservation means the use of 635-21 practices, techniques, and technologies that will reduce the 635-22 consumption of water, reduce the loss or waste of water, improve 635-23 efficiency in the use of water, or increase the recycling and reuse 635-24 of water so that a water supply is made available for future uses. 635-25 Sec. 273.018. FORESTATION AND REFORESTATION. The authority 635-26 may forest and reforest and aid in the foresting and reforesting of 636-1 the watershed area of the basin. 636-2 Sec. 273.019. GROUNDWATER. (a) The authority may conduct 636-3 surveys and studies of the groundwater supplies in the authority 636-4 for the purpose of determining the location and quantity of 636-5 groundwater available and develop and ascertain other data and 636-6 information that in the judgment of the board may be necessary to 636-7 fully develop water uses from the groundwater in the authority. 636-8 (b) Subject to the requirements of applicable laws and with 636-9 the approval and under the supervision of the commission, the 636-10 authority may appropriate storm water and floodwater to recharge 636-11 underground freshwater-bearing sand and aquifers in the basin. 636-12 Sec. 273.020. WATER QUALITY CONTROL. The authority is a 636-13 river authority for the purposes and definitions of Chapters 362 636-14 and 383, Health and Safety Code, and Chapter 30 as they apply to 636-15 the authority. If one of those chapters conflicts with this 636-16 chapter, this chapter prevails. 636-17 Sec. 273.021. SOLID WASTE. The authority may purchase, 636-18 acquire, construct, maintain, and provide facilities, equipment, 636-19 and disposal sites to furnish solid waste collection, 636-20 transportation, treatment, and disposal services inside the 636-21 authority, may charge for the services, and may enter into 636-22 contracts for those services with any person. 636-23 Sec. 273.022. PARKS AND RECREATIONAL FACILITIES. The 636-24 authority may acquire land adjacent to or in the basin for park and 636-25 recreational purposes and may acquire, construct, and maintain park 636-26 and recreational facilities on that land. 637-1 Sec. 273.023. PERMITS AND LICENSES. (a) The authority 637-2 shall apply for any permits, licenses, franchises, and other grants 637-3 of authority required from the commission. 637-4 (b) The authority may apply for any permits, licenses, 637-5 franchises, and financial assistance it may need from the Texas 637-6 Water Development Board, the commission, or any other state, 637-7 federal, or local governmental agency. 637-8 Sec. 273.024. SERVICE CONTRACTS AND CHARGES. (a) The 637-9 authority may enter into service contracts and may adopt 637-10 resolutions and orders establishing rates and providing for the 637-11 collection of fees and charges for the sale or use of water, the 637-12 services of water transmission, treatment, and storage facilities, 637-13 solid and liquid waste collection, treatment and disposal 637-14 facilities and services, the use of park and recreational 637-15 facilities, the sale of power and electric energy, and any other 637-16 services or facilities sold, furnished, or supplied by the 637-17 authority. 637-18 (b) The fees and charges shall be sufficient to produce 637-19 revenues adequate to: 637-20 (1) pay expenses necessary for the operation and 637-21 maintenance of the property and facilities of the authority; 637-22 (2) pay the principal of and interest on any bonds or 637-23 other obligations issued by the authority when due and payable and 637-24 to fulfill any reserve or other fund obligations of the authority 637-25 in connection with the bonds or other obligations; and 637-26 (3) pay any other expenses the board considers 638-1 necessary and proper for the operations of the authority. 638-2 Sec. 273.025. EMINENT DOMAIN. (a) The authority may 638-3 acquire land inside and outside the authority to carry out the 638-4 powers, rights, privileges, authority, and functions authorized by 638-5 this chapter by condemnation when the board determines, after 638-6 notice and hearing, that it is necessary. 638-7 (b) The right of eminent domain shall be exercised by the 638-8 authority in the manner provided by Chapter 21, Property Code, 638-9 except that the authority is not required to give bond for appeal 638-10 or bond for costs in a condemnation suit or other suit to which it 638-11 is a party and is not required to deposit double the amount of any 638-12 award in any suit. 638-13 (c) If the authority, in the exercise of the power of 638-14 eminent domain, makes necessary the relocation, raising, lowering, 638-15 rerouting, changing the grade, or alteration of the construction of 638-16 any highway, railroad, electric transmission or distribution line, 638-17 telephone or telegraph properties and facilities, or pipeline, all 638-18 necessary relocations, raising, lowering, rerouting, changing the 638-19 grade, or alteration of construction shall be accomplished at the 638-20 sole expense of the authority. In this subsection "sole expense" 638-21 means the actual cost of relocation, raising, lowering, rerouting, 638-22 change in grade, or alteration of construction to provide 638-23 comparable replacement without enhancement of facilities after 638-24 deducting the net salvage value derived from the old facility. 638-25 Sec. 273.026. ACQUISITION AND DISPOSITION OF PROPERTY. 638-26 (a) The authority may purchase, lease, acquire by gift, maintain, 639-1 use, and operate property of any kind inside or outside the 639-2 authority appropriate for the exercise of its powers or the 639-3 accomplishment of its purposes. 639-4 (b) The authority may sell any property or interest in 639-5 property owned by the authority by installments or otherwise, 639-6 including sales in any manner prescribed or authorized by Section 639-7 402.014, Local Government Code, Chapter 383, Health and Safety 639-8 Code, and Chapter 30. The authority may also lease, exchange, or 639-9 otherwise dispose of any property or interest in property. 639-10 Sec. 273.027. FACILITIES. The authority may acquire, 639-11 construct, extend, improve, maintain, reconstruct, use, and operate 639-12 facilities inside or outside the authority necessary or convenient 639-13 to the exercise of its powers, rights, duties, and functions or the 639-14 accomplishment of its purposes. 639-15 Sec. 273.028. USE OF PUBLIC EASEMENTS. The authority may 639-16 use public roadways, streets, alleys, or public easements inside or 639-17 outside the boundaries of the authority in the exercise of its 639-18 powers or the accomplishment of its purposes without the necessity 639-19 of securing a franchise. 639-20 Sec. 273.029. CONTRACTS GENERALLY. (a) The authority may 639-21 enter into contracts and execute instruments that are necessary or 639-22 convenient to the exercise of its powers, rights, duties, and 639-23 functions or the accomplishment of its purposes. 639-24 (b) Notwithstanding any other law, the authority may 639-25 undertake and carry out any activities, enter into contracts, loan 639-26 agreements, leases, or installment sales agreements, and acquire, 640-1 purchase, construct, own, operate, maintain, repair, improve, or 640-2 extend and loan, lease, sell, or otherwise dispose of, as the 640-3 parties may agree, any facilities, plants, buildings, structures, 640-4 equipment, and appliances, property or any interest in property, 640-5 and any or all money or proceeds of bonds and other obligations. 640-6 These activities and agreements may be accomplished by such methods 640-7 as loan payments, rentals, sales, and installment sales. 640-8 (c) The authority may contract with all persons in any 640-9 manner authorized by this chapter, Chapters 362 and 383, Health and 640-10 Safety Code, and Chapter 30 with respect to water, waste, pollution 640-11 control, or any other facilities and any services provided by the 640-12 authority. A public agency may also enter into and execute such a 640-13 contract with the authority and may determine, agree, and pledge 640-14 that all or any parts of its payments under the contract are 640-15 payable from the source described in Section 30.030(c), subject 640-16 only to the authorization of the contract, pledge, and payments by 640-17 the governing body of the public agency. A public agency may also 640-18 use and pledge other available revenues or resources for payment of 640-19 amounts due under those contracts, as an additional source or 640-20 sources of payment or as the sole source or sources of payment. 640-21 (d) A public agency may set, charge, and collect fees, 640-22 rates, charges, rentals, and other amounts for services or 640-23 facilities provided by a utility operated by the agency, or 640-24 provided pursuant to or in connection with a contract with the 640-25 authority, from its inhabitants or from users or beneficiaries of 640-26 the utility, services, or facilities, including water charges and 641-1 garbage collection or handling fees and other fees or charges, may 641-2 use and pledge those funds to make payments to the authority 641-3 required under the contract, and may covenant to do so in amounts 641-4 sufficient to make all or part of those payments to the authority 641-5 when due. If the parties agree in the contract, the payments 641-6 constitute an expense of operation of any facilities or utility 641-7 operated by the public agency. 641-8 Sec. 273.030. BIDS AND CONTRACT CONDITIONS. (a) A 641-9 construction, maintenance, operation, or repair contract, a 641-10 contract for the purchase of material, equipment, or supplies, or a 641-11 contract for services, other than technical, scientific, legal, 641-12 fiscal, or other professional services, that will require an 641-13 estimated expenditure of more than $10,000 or is for a term of six 641-14 months or more shall be awarded to the lowest and best bidder. If 641-15 the board finds that an extreme emergency exists, the board may 641-16 award contracts necessary to protect and preserve the public health 641-17 and welfare or the property of the authority without using the 641-18 bidding procedures. 641-19 (b) A notice to bidders shall be published once each week 641-20 for three consecutive weeks before the date set for awarding the 641-21 contract. The notice must be published in a newspaper with general 641-22 circulation in the authority and may also be published in any other 641-23 appropriate publication. 641-24 (c) The notice of bids is sufficient if it states the time 641-25 and place at which the bids will be opened and the general nature 641-26 of the work to be done, the material, equipment, or supplies to be 642-1 purchased, or the nonprofessional services to be rendered and 642-2 states the terms on which copies of the plans, specifications, or 642-3 other pertinent information may be obtained. 642-4 (d) A person who desires to bid on the construction of any 642-5 work or project that is advertised for bids shall, on written 642-6 application to the authority, be provided a copy of the plans and 642-7 specifications or other engineering and architectural documents 642-8 showing the work to be done and all of the details of the work to 642-9 be done. The authority may make a charge to cover the cost of 642-10 making the copy. Bids must be in writing and sealed and delivered 642-11 to the authority and must be accompanied by a certified check on a 642-12 responsible bank in the state, or, at the discretion of the 642-13 authority, a bid bond from a company approved by the authority, for 642-14 at least one percent of the total amount bid. The check or bond is 642-15 forfeited to the authority if the successful bidder fails or 642-16 refuses to enter into a proper contract or fails or refuses to 642-17 furnish bond as required by law. Any or all bids may be rejected 642-18 by the authority, and the authority may waive any irregularity in 642-19 the bids. 642-20 (e) Bids shall be opened at the place specified in the 642-21 published notice and shall be announced by the authority. The 642-22 place where the bids are opened and announced shall be open to the 642-23 public. The award of the contract shall be made by the board. 642-24 (f) The contract price of construction contracts of the 642-25 authority may be paid in partial payment as the work progresses, 642-26 but the payments shall not exceed 90 percent of the amount due at 643-1 the time of the payment as shown by the report of the engineer of 643-2 the authority. During the progress of the work, the executive 643-3 director shall inspect the construction or have the construction 643-4 inspected by the authority's engineer or the engineer's assistants. 643-5 On certification of the executive director and the authority's 643-6 engineer of the completion of the contract in accordance with its 643-7 terms, and in the case of any construction contract for which 643-8 notice to bidders is required by this chapter, on approval of the 643-9 board, the board shall draw a warrant on its depository to pay the 643-10 balance due on the contract. 643-11 (g) The person, firm, or corporation with whom the contract 643-12 is made shall provide the performance and payment bonds required by 643-13 law. 643-14 (h) This section does not prohibit the authority from 643-15 purchasing or acquiring land or interests in land from any person, 643-16 from acquiring, constructing, or improving pollution control or 643-17 waste collection and disposal facilities as provided by Chapter 643-18 383, Health and Safety Code, or Chapter 30 or other applicable 643-19 laws, or from purchasing or acquiring surplus property from a 643-20 governmental entity by negotiated contract and without necessity 643-21 for advertising for bids. 643-22 (i) An officer, agent, or employee of the authority who has 643-23 a financial interest in a contract shall disclose that fact to the 643-24 board before the board votes on the acceptance of the contract. 643-25 Sec. 273.031. AUTHORITY RULES. (a) The authority may adopt 643-26 and enforce rules reasonably required to carry out the purposes of 644-1 this chapter. 644-2 (b) In adopting rules, the board shall comply, as 644-3 appropriate, with the requirements of Chapter 2001, Government 644-4 Code. 644-5 (c) The board shall print its rules and furnish copies to 644-6 any person on written request. 644-7 Sec. 273.032. PENALTIES. (a) A person who violates a rule 644-8 or order of the authority is subject to a civil penalty of not less 644-9 than $50 nor more than $1,000 for each day of violation. 644-10 (b) The authority may sue to recover the penalty in a 644-11 district court in the county in which the violation occurred. 644-12 Penalties shall be paid to the authority. 644-13 (c) The authority may sue for injunctive relief in a 644-14 district court in the county in which the violation of any rule or 644-15 order occurred or is threatened. 644-16 (d) The authority may sue for injunctive relief and 644-17 penalties in the same proceeding. 644-18 Sec. 273.033. COURT REVIEW. (a) A person who is adversely 644-19 affected by a rule or order of the authority may, before the 31st 644-20 day after the day on which the rule or order takes effect, sue the 644-21 authority in a district court to set aside the rule or order. 644-22 (b) Venue for suits under Subsection (a) is in any county 644-23 located wholly or partially in the authority. 644-24 Sec. 273.034. SURVEYS AND ENGINEERING INVESTIGATIONS; 644-25 PLANNING. (a) The authority may make surveys and engineering 644-26 investigations to develop information for the authority's use. 645-1 (b) The board may make and determine plans necessary to 645-2 accomplish the purposes for which the authority is created and may 645-3 carry out the plans. 645-4 Sec. 273.035. ACCESS. (a) To provide for the safety and 645-5 welfare of persons and their property or for the protection and 645-6 security of the property and facilities of the authority, the board 645-7 may adopt rules with respect to the property of the authority and 645-8 any water reservoir or dam, the construction, operation, or 645-9 management of which is participated in by the authority, to control 645-10 and regulate ingress, egress, and use and the operation of land and 645-11 water vehicles. 645-12 (b) All public roads, streets, and state highways traversing 645-13 the areas adjacent to the areas to be covered by any impounded 645-14 water shall remain open as a way of public passing to and from the 645-15 lakes created, unless changed by the authority. 645-16 Sec. 273.036. USE OF BED AND BANKS OF SULPHUR RIVER AND ITS 645-17 TRIBUTARIES. Subject to the approval of the commission, the 645-18 authority may use the beds and banks of the Sulphur River and its 645-19 tributary streams for any purposes necessary to accomplish the 645-20 plans of the authority for storing, controlling, conserving, 645-21 transporting, and distributing storm water, floodwater, and 645-22 appropriated flow waters for useful purposes. 645-23 Sec. 273.037. WORK WITH DEVELOPMENT BOARD. The authority 645-24 has and may exercise all the powers vested in political 645-25 subdivisions under Title 2, including the powers necessary to 645-26 enable the authority to participate in the programs administered by 646-1 the Texas Water Development Board for the acquisition and 646-2 development of facilities, the sale or lease of facilities, 646-3 financial assistance to political subdivisions, and other programs. 646-4 Sec. 273.038. GENERAL PROVISIONS. (a) The board may 646-5 provide for any expenditures it considers essential or useful in 646-6 the maintenance, operation, and administration of the authority. 646-7 (b) The authority may perform any other acts or things 646-8 necessary or convenient to the exercise of the powers, rights, 646-9 privileges, or functions conferred by this chapter or other laws. 646-10 Sec. 273.039. LIMITATIONS ON AUTHORITY AND SUPERVISION BY 646-11 COMMISSION. (a) The powers and duties granted and prescribed by 646-12 this chapter are subject to all legislative declarations of public 646-13 policy in the maximum use of the storm water, floodwater, and 646-14 unappropriated flow water of the basin for the purposes for which 646-15 the authority is created and subject to the continuing right of 646-16 supervision of the state through the commission. 646-17 (b) The commission shall approve or refuse to approve the 646-18 adequacy of any plan or plans for flood control or conservation 646-19 improvement purposes that are devised by the authority for the 646-20 achievement of the plans and purposes intended in the creation of 646-21 the authority and that contemplate improvements supervised by the 646-22 commission under general law. 646-23 Sec. 273.040. DISBURSEMENT OF FUNDS. The authority's funds 646-24 may be disbursed only by check, draft, order, or other instrument 646-25 signed by the person or persons authorized in the board's rules or 646-26 by resolution of the board. 647-1 Sec. 273.041. FEES AND CHARGES. The authority shall 647-2 establish fees and charges that may not be higher than necessary to 647-3 fulfill the obligations imposed by this chapter. 647-4 Sec. 273.042. LOANS AND GRANTS. (a) The authority may 647-5 borrow money and accept grants and donations for its corporate 647-6 purposes from private sources, the United States, the state, local 647-7 governments, or any other person. The authority may enter into any 647-8 agreement in connection with the loan, grant, or donation that is 647-9 not in conflict with the constitution and laws of the state. 647-10 (b) The sources of any funds accepted by the authority are 647-11 public information. 647-12 Sec. 273.043. FUNDS FOR SURVEYS AND DATA COLLECTION. The 647-13 authority may apply to the state, the United States, or any other 647-14 person for funds necessary to secure engineering surveys and the 647-15 compilation and collection of data relating to regional and general 647-16 conditions entering into and influencing the character and the 647-17 extent of the improvements necessary to accomplish the storage, 647-18 control, transportation, treatment, conservation, and equitable 647-19 distribution to the greatest public advantage of the storm water, 647-20 floodwater, and normal flow that is stored and controlled and to 647-21 accomplish or carry out any of the other purposes of this chapter. 647-22 The authority shall request an amount it considers sufficient. The 647-23 authority may make the necessary agreements with the party 647-24 providing the funds and may appropriate the amount of the estimated 647-25 equitable contribution of the costs of developing essential 647-26 engineering data. 648-1 Sec. 273.044. TRUST FUNDS. Funds collected by or donated, 648-2 granted, loaned, or advanced to the authority are declared to be 648-3 trust funds for the purposes provided by this chapter. 648-4 Sec. 273.045. INVESTMENT OF FUNDS. (a) Funds in the 648-5 authority treasury that are not required for current payment of 648-6 obligations of the authority or for sinking funds and that the 648-7 board considers available for investment may be invested or 648-8 reinvested by the authority in: 648-9 (1) direct obligations of or obligations the principal 648-10 and interest of which are guaranteed by the United States; 648-11 (2) direct obligations of or participation 648-12 certificates guaranteed by the Federal Intermediate Credit Banks, 648-13 Federal Land Banks, Federal National Mortgage Association, Federal 648-14 Home Loan Banks, and Banks for Cooperatives; 648-15 (3) certificates of deposit of a bank or trust company 648-16 the deposits of which are fully secured by a pledge of securities 648-17 of any of the institutions specified in this subsection; 648-18 (4) other securities eligible for investment under 648-19 other laws; or 648-20 (5) any combination of the investments listed in this 648-21 subsection. 648-22 (b) The type and maturity of investments made under this 648-23 section shall be determined by the board. In the case of funds 648-24 established in connection with the authorization of bonds or other 648-25 obligations, the board shall include appropriate provisions 648-26 relating to such investments in the resolution relating to the 649-1 issuance of the bonds. Income and profits on such investments 649-2 shall be applied as directed by the board. 649-3 Sec. 273.046. AUDIT. (a) The fiscal year of the authority 649-4 ends on August 31 of each year. 649-5 (b) On or before January 1 following the close of each 649-6 fiscal year, the state auditor shall audit the books and accounts 649-7 of the authority for the preceding fiscal year. 649-8 (c) The audit must state the amount of money received by the 649-9 authority under this chapter during the preceding fiscal year and 649-10 how, to whom, and for what purpose the money was spent. 649-11 (d) A copy of the audit report shall be filed with the 649-12 authority, the governor, the lieutenant governor, the speaker of 649-13 the house of representatives, the attorney general, the commission, 649-14 and the comptroller. 649-15 (e) After completing the audit report, the state auditor 649-16 shall prepare a statement showing the actual cost of the audit and 649-17 shall certify the statement to the governor for his approval. 649-18 After the statement is approved by the governor, it shall be 649-19 delivered to the authority. The authority shall pay for the cost 649-20 of the audit by depositing the money for the audit with the 649-21 comptroller, who shall place the money in the general revenue fund. 649-22 (f) This section does not prohibit the authority from 649-23 employing the professional services of accountants for any 649-24 purposes. 649-25 Sec. 273.047. DEPOSITORY BANKS. (a) The board shall 649-26 designate one or more banks inside or outside the authority to 650-1 serve as depository for the funds of the authority. 650-2 (b) All money of the authority shall be deposited in the 650-3 depository bank or banks, except that bond proceeds or proceeds of 650-4 other obligations, money pledged to pay those obligations, money 650-5 placed in special funds, and money remitted to a bank of payment 650-6 for the payment of the principal of and interest on obligations may 650-7 be handled as provided in a trust indenture or resolution. 650-8 (c) To the extent that funds in the depository banks or a 650-9 trustee bank are not invested or insured by the Federal Deposit 650-10 Insurance Corporation, the funds shall be secured in the manner 650-11 provided by law for the security of county funds. 650-12 (d) Before designating a depository bank or banks, the board 650-13 shall issue a notice stating the time and place at which the board 650-14 will meet to designate the depositories and inviting banks to 650-15 submit applications to be designated depositories. The term of 650-16 service for depositories shall be prescribed by the board. The 650-17 notice must be published one time in a newspaper or newspapers of 650-18 general circulation in the authority and specified by the board, or 650-19 in lieu of publication, a copy of the notice may be mailed to each 650-20 bank inside the boundaries of the authority. 650-21 (e) At the time stated in the notice, the board shall 650-22 consider the applications and the management and conditions of the 650-23 banks filing them and shall designate as depositories the bank or 650-24 banks that offer the most favorable terms and conditions for the 650-25 handling of the funds of the authority and that the board finds 650-26 have proper management and are in condition to warrant handling of 651-1 authority funds. Membership on the board by an officer or director 651-2 of a bank does not disqualify the bank from being designated as 651-3 depository. 651-4 (f) If no applications seeking designation as depository are 651-5 received by the time stated in the notice, the board shall 651-6 designate a bank or banks inside or outside the authority as 651-7 depository on terms and conditions the board considers advantageous 651-8 to the authority. 651-9 Sec. 273.048. BONDS. (a) For the purpose of carrying out 651-10 any power or authority provided by this chapter, including the 651-11 expense of preparing the master plan and the payment of engineering 651-12 and other expenses, the authority may issue bonds or other 651-13 obligations in one general class secured by a pledge of all or part 651-14 of the revenues accruing to the authority, including without 651-15 limitations the revenues received from the sale of water or other 651-16 products, from the rendition of service, from tolls and charges, 651-17 and from all other sources other than ad valorem taxes. 651-18 (b) The bonds must be authorized by resolution of the board, 651-19 issued in the name of the authority, signed by the president or a 651-20 vice president, and attested by the secretary. The bonds must bear 651-21 the seal of the authority. If authorized by the board, the 651-22 signatures of the president or vice president and of the secretary 651-23 or of both may be printed or lithographed on the bonds, and the 651-24 seal of the authority may be impressed on the bonds or may be 651-25 printed or lithographed on the bonds. 651-26 (c) The bonds shall be in the form prescribed by the board, 652-1 shall be in any denomination or denominations, must mature serially 652-2 or otherwise in not to exceed 50 years from their date, shall bear 652-3 interest according to law, and may be sold at a price and under 652-4 terms determined by the board to be the most advantageous 652-5 reasonably obtainable. The board may make the bonds callable 652-6 before maturity at the times and prices prescribed in the bonds, 652-7 and the bonds may be made registrable as to principal or as to both 652-8 principal and interest. The bonds may be further secured by a 652-9 trust indenture with a corporate trustee. 652-10 (d) Bonds may be issued in more than one series, and from 652-11 time to time, as required for carrying out the purposes of this 652-12 chapter. A pledge of revenue may reserve the right, under 652-13 specified conditions, to issue additional obligations that will be 652-14 on a parity with or subordinate to the obligations being issued. 652-15 (e) The authority is an "issuer" for the purpose of Chapter 652-16 1371, Government Code, and that law applies to the authority. 652-17 (f) The resolution authorizing the bonds or the trust 652-18 indenture further securing the bonds may specify additional 652-19 provisions that constitute a contract between the authority and the 652-20 owners of the bonds. The board may provide for additional 652-21 provisions, including a corporate trustee or receiver provided by 652-22 the authority to take possession of facilities of the authority in 652-23 the event of default on the part of the authority in fulfilling the 652-24 covenants. 652-25 Sec. 273.049. REFUNDING BONDS. The authority may issue 652-26 refunding bonds to refund outstanding obligations issued under this 653-1 chapter. Refunding bonds may be issued by the authority as 653-2 provided by Chapter 1207, Government Code. Obligations issued at 653-3 any time by the authority may also be refunded in the manner 653-4 provided by any other applicable law. 653-5 Sec. 273.050. APPROVAL AND REGISTRATION OF BONDS. 653-6 (a) After bonds, including refunding bonds, are authorized by the 653-7 authority, the bonds and the record relating to their issuance 653-8 shall be submitted to the attorney general for examination as to 653-9 the validity of the bonds. If obligations are to be issued to 653-10 finance in whole or in part water-using facilities, before granting 653-11 approval the attorney general shall be furnished a resolution from 653-12 the commission certifying that the authority has the necessary 653-13 water rights authorizing it to impound and appropriate the water to 653-14 be used by the project. If the obligations recite that they are 653-15 secured by a pledge of the proceeds of a contract made between the 653-16 authority and any public agency, a copy of the contract and the 653-17 proceedings of the public agency authorizing the contract shall 653-18 also be submitted to the attorney general. 653-19 (b) If the attorney general finds that the bonds have been 653-20 authorized and the contracts have been made as provided by the 653-21 constitution and laws of the state, the attorney general shall 653-22 approve the bonds and the contracts and the bonds shall then be 653-23 registered by the comptroller. 653-24 (c) After approval and registration, the bonds and contracts 653-25 are valid and binding and are incontestable for any cause. 653-26 Sec. 273.051. BONDS AS INVESTMENTS OR SECURITY FOR DEPOSITS. 654-1 (a) Authority bonds are legal and authorized investments for: 654-2 (1) banks; 654-3 (2) savings banks; 654-4 (3) trust companies; 654-5 (4) savings and loan associations; 654-6 (5) insurance companies; 654-7 (6) fiduciaries; 654-8 (7) trustees; 654-9 (8) guardians; and 654-10 (9) sinking funds of cities, counties, school 654-11 districts, and other political subdivisions of the state and other 654-12 public funds of the state and its agencies, including the permanent 654-13 school fund. 654-14 (b) Authority bonds are eligible to secure deposits of 654-15 public funds of the state and cities, counties, school districts, 654-16 and other political subdivisions of the state. The bonds are 654-17 lawful and sufficient security for deposits to the extent of their 654-18 value. 654-19 Sec. 273.052. LEGISLATIVE FINDINGS. The legislature finds 654-20 and determines that the boundaries of the authority form a closure. 654-21 If a mistake is made in the description of the boundaries in the 654-22 legislative process or a mistake is otherwise made, the mistake 654-23 does not affect the organization, existence, and validity of the 654-24 authority or the right of the authority to issue any types of 654-25 bonds, including refunding bonds, for the purposes for which the 654-26 authority is created or to pay the principal of or interest on the 655-1 obligations or in any other manner affect the legality or operation 655-2 of the authority or its governing body. 655-3 CHAPTER 274. SULPHUR RIVER MUNICIPAL WATER DISTRICT 655-4 Sec. 274.001. CREATION. (a) A conservation and reclamation 655-5 district to be known as the "Sulphur River Municipal Water 655-6 District" is created. The district is a governmental agency and a 655-7 body politic and corporate. 655-8 (b) The district is created under and is essential to 655-9 accomplish the purposes of Section 59, Article XVI, Texas 655-10 Constitution. 655-11 Sec. 274.002. DEFINITIONS. In this chapter: 655-12 (1) "Board" means the board of directors of the 655-13 district. 655-14 (2) "Director" means a member of the board. 655-15 (3) "District" means the Sulphur River Municipal Water 655-16 District. 655-17 Sec. 274.003. TERRITORY. (a) The district comprises all 655-18 the territory that was contained within the cities of Cooper, 655-19 Commerce, and Sulphur Springs on March 1, 1955. A defect in the 655-20 definition of the boundaries of any of those cities or in any past 655-21 or future proceedings for the annexation of territory to any of 655-22 those cities does not affect the validity of the district or any of 655-23 its powers or duties. 655-24 (b) It is found that all the land included in the district 655-25 will benefit from the improvements to be acquired and constructed 655-26 by the district. 656-1 Sec. 274.004. BOARD OF DIRECTORS. (a) All powers of the 656-2 district shall be exercised by a board of directors. The directors 656-3 shall be appointed by a majority vote of the governing body of each 656-4 of the cities contained in the district. 656-5 (b) In May of each year, the governing body of each city 656-6 shall appoint one director for a two-year term beginning on June 1 656-7 of that year. 656-8 (c) Each director serves for a term of office as provided by 656-9 this section and until a successor is appointed and has qualified. 656-10 (d) A director must reside in and own taxable property in 656-11 the city from which the director is appointed. A member of a 656-12 governing body of a city or an employee of a city is not eligible 656-13 to serve as a director. 656-14 (e) A director shall subscribe the constitutional oath of 656-15 office and shall give bond for the faithful performance of the 656-16 director's duties in the amount of $5,000. The cost of the bond 656-17 shall be paid by the district. 656-18 (f) A majority of the members of the board constitutes a 656-19 quorum. 656-20 Sec. 274.005. DIRECTOR FEES. (a) Each director is entitled 656-21 to receive a fee of $20 for attending each meeting of the board; 656-22 provided, however, that not more than $40 shall be paid to any 656-23 director for meetings held in any one calendar month. 656-24 (b) A director is entitled to receive a fee of $20 per day 656-25 for each day devoted to the business of the district and to 656-26 reimbursement for actual expenses incurred in attending to district 657-1 business if such service and expense are expressly approved by the 657-2 board. 657-3 Sec. 274.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 657-4 shall elect from among its members a president and a vice president 657-5 of the district and other officers the board considers necessary. 657-6 (b) The president is the chief executive officer of the 657-7 district and the presiding officer of the board and has the same 657-8 right to vote as any other director. 657-9 (c) The vice president shall perform all duties and exercise 657-10 all powers conferred by this chapter on the president when the 657-11 president is absent or fails or declines to act. 657-12 (d) The board shall appoint a secretary and a treasurer, who 657-13 may or may not be members of the board, and may combine those 657-14 offices. The treasurer shall give bond in an amount required by 657-15 the board, but in no event less than $25,000. The bond shall be 657-16 conditioned on the treasurer's faithfully accounting for all money 657-17 that comes into the treasurer's custody as treasurer of the 657-18 district. Until the district authorizes the issuance of bonds, the 657-19 amount of the official bond of the treasurer may be set by the 657-20 board in any amount not less than $5,000. 657-21 (e) The board shall appoint and employ all necessary 657-22 engineers, attorneys, and other employees. 657-23 (f) The board shall adopt a seal for the district. 657-24 Sec. 274.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES. 657-25 (a) Other territory in Delta, Hunt, Hopkins, and Franklin counties 657-26 may be annexed to the district as provided in this section. 658-1 (b) A petition for annexation must: 658-2 (1) be signed by 50 or a majority of the qualified 658-3 voters of the territory to be annexed who own taxable property in 658-4 the territory and who have duly rendered the property to the city, 658-5 if situated within a city or town, or county for taxation; 658-6 (2) be filed with the board; and 658-7 (3) describe the territory to be annexed by metes and 658-8 bounds or otherwise unless the territory is the same as that 658-9 contained in a city or town, in which event it shall be sufficient 658-10 to state that the territory to be annexed is that which is 658-11 contained within the city or town. 658-12 (c) If the board finds that the petition complies with and 658-13 is signed by the number of qualified persons required under 658-14 Subsection (b), that the annexation would be in the interest of the 658-15 territory to be annexed and the district, and that the district 658-16 will be able to supply water to the territory to be annexed, the 658-17 board shall adopt a resolution stating the conditions, if any, 658-18 under which the territory may be annexed to the district and 658-19 requesting the commission to annex the territory to the district. 658-20 A certified copy of the resolution and of the petition shall be 658-21 filed with the commission. 658-22 (d) The commission shall adopt a resolution declaring its 658-23 intention to call an election in the territory to be annexed for 658-24 the purpose of submitting the proposition of whether or not the 658-25 territory shall be annexed to the district. The commission shall 658-26 set a time and place for a hearing to be held by the commission on 659-1 the question of whether the territory to be annexed will be 659-2 benefited by the improvements, works, and facilities then owned or 659-3 operated or contemplated to be owned or operated by the district. 659-4 A railroad right-of-way that is not situated within the defined 659-5 limits of an incorporated city or town will not benefit from the 659-6 improvements, works, and facilities that the district is authorized 659-7 to construct. A railroad right-of-way may not be annexed to the 659-8 district unless the right-of-way is contained within the limits of 659-9 an incorporated city or town that has been annexed to the district. 659-10 (e) Notice of the adoption of the resolution stating the 659-11 time and place of the hearing and addressed to the citizens and 659-12 owners of property in the territory to be annexed shall be 659-13 published one time in a newspaper published within or having 659-14 general circulation within the territory, designated by the 659-15 commission, at least 10 days before the date of the hearing. The 659-16 notice must describe the territory to be annexed in the same manner 659-17 as required or permitted by the petition. 659-18 (f) All interested persons may appear at the hearing and 659-19 offer evidence for or against the intended annexation. The hearing 659-20 may proceed in the order and under the rules prescribed by the 659-21 commission, and the hearing may be recessed from time to time. If, 659-22 at the conclusion of the hearing, the commission finds that all of 659-23 the lands in the territory to be annexed will benefit from the 659-24 present or contemplated improvements, works, or facilities of the 659-25 district, the commission shall adopt a resolution calling an 659-26 election in the territory to be annexed stating the date and place 660-1 or places for holding the election and appointing a presiding judge 660-2 for each voting place, who shall appoint the necessary assistant 660-3 judges and clerks to assist in holding the election. 660-4 (g) Notice of the election, stating the date of the 660-5 election, the proposition to be voted on, and the conditions under 660-6 which the territory may be annexed, or making reference to the 660-7 resolution of the board for that purpose, and the place or places 660-8 for holding the election, shall be published one time in a 660-9 newspaper designated by the commission at least 10 days before the 660-10 date set for the election. If the newspaper carrying the notice is 660-11 not published within the territory to be annexed, additional notice 660-12 shall be given for the required period by posting copies of the 660-13 notice of election at three public places in the territory. 660-14 (h) Only qualified electors who reside in the territory to 660-15 be annexed may vote in the election. Returns of the election shall 660-16 be made to the commission. 660-17 (i) The commission shall canvass the returns of the election 660-18 and adopt a resolution declaring the results. If the resolution 660-19 shows that a majority of the votes cast are in favor of annexation, 660-20 the commission shall enter an order annexing the territory to the 660-21 district, and the annexation shall be incontestable except in the 660-22 manner and within the time for contesting elections under the 660-23 Election Code. A certified copy of the order shall be recorded in 660-24 the deed records of the county in which the territory is situated. 660-25 (j) The commission, in calling the election on the 660-26 proposition for annexation of territory, may include a proposition 661-1 for the assumption of the territory's part of the tax-supported 661-2 bonds of the district then outstanding and those voted but not yet 661-3 sold and for the levy of an ad valorem tax on taxable property in 661-4 the territory along with the tax in the remainder of the district 661-5 for the payment of the bonds. 661-6 (k) After territory is added to the district, the board may 661-7 call an election over the entire district for the purpose of 661-8 determining whether the district as enlarged shall assume the 661-9 tax-supported bonds, if any, then outstanding, and those voted but 661-10 not yet sold, and whether an ad valorem tax shall be levied on all 661-11 taxable property within the district as enlarged for the payment of 661-12 the bonds, unless the proposition is voted along with the 661-13 annexation election and becomes lawfully binding on the territory 661-14 annexed. The election shall be called and held in the same manner 661-15 as elections for the issuance of bonds as provided by this chapter. 661-16 (l) If no newspaper is published in the territory to be 661-17 annexed, the notices required by this section shall be posted in 661-18 three public places in the territory. 661-19 Sec. 274.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY. 661-20 (a) When a city, the territory of which is annexed to the 661-21 district, has a population of 5,000 or more, the governing body of 661-22 the city shall appoint one director for a term ending the following 661-23 May 31 and one director for a term ending one year after the 661-24 following May 31. In May of each year the governing body of the 661-25 city shall appoint one director for a two-year term as provided by 661-26 this chapter for cities originally included in the district. 662-1 (b) When a city, the territory of which is annexed to the 662-2 district has a population of less than 5,000, the governing body of 662-3 the city shall appoint one director for a term ending the following 662-4 May 31. In that May and in May of each second year after that the 662-5 governing body of the city shall appoint one director for a 662-6 two-year term. 662-7 (c) If a city initially subject to Subsection (b) later has 662-8 a population of 5,000 or more, it shall be entitled to two 662-9 directors to be appointed as provided by Subsection (a). 662-10 Sec. 274.009. USE OF CERTAIN WATERS AND FACILITIES. 662-11 (a) The district may acquire: 662-12 (1) all rights to conservation storage and storage 662-13 capacity in the reservoir to be provided by Cooper Dam and 662-14 conservation storage as may result from an increase in the size of 662-15 such structure; and 662-16 (2) the right to take water from the reservoir 662-17 described by Subdivision (1) in which the dam will impound storm 662-18 waters and floodwaters and the unappropriated flow of the South 662-19 Sulphur River and its tributaries by complying with the applicable 662-20 provisions of this code and pursuant to any contracts that the 662-21 district may make with the United States government in reference to 662-22 those rights. 662-23 (b) The district may construct or otherwise acquire all 662-24 works, plants, and other facilities necessary or useful for the 662-25 purpose of diverting and further impounding or storing the water 662-26 described by Subsection (a) and processing and transporting it to 663-1 cities and others for municipal, domestic, and industrial purposes. 663-2 (c) To the extent permissible under any contract or 663-3 contracts with the United States government and its agencies under 663-4 this section, the district may dispose of surplus waters under its 663-5 control for irrigation purposes. 663-6 (d) As an aid to conserving the water in the district, the 663-7 district may construct and operate sewage disposal plants and 663-8 related facilities and may make contracts necessary to financing 663-9 the construction and operation of the plants and facilities with 663-10 any city included within the district. 663-11 (e) Any works for diverting water from the impounding dam 663-12 may not be constructed until the plans for the works are approved 663-13 by the commission. 663-14 (f) None of the powers granted by this section extend 663-15 outside of Delta County, Hunt County, Hopkins County, and Franklin 663-16 County. 663-17 Sec. 274.010. EMINENT DOMAIN. (a) For the purpose of 663-18 carrying out any power or authority conferred by this chapter the 663-19 district may acquire land and easements within and outside the 663-20 district in Delta County, Hunt County, Hopkins County, and Franklin 663-21 County, including land above the probable high-water line around 663-22 any impounding or diversion reservoir, by condemnation in the 663-23 manner provided by Chapter 21, Property Code. 663-24 (b) The district is a municipal corporation within the 663-25 meaning of Section 21.021(c), Property Code. 663-26 (c) Except as provided by Subsection (d), the amount and 664-1 character of interest in land and easements acquired under this 664-2 section shall be determined by the board. 664-3 (d) As against persons, firms, and corporations, or their 664-4 receivers or trustees, who have the power of eminent domain, the 664-5 district may condemn only an easement, and the fee title may not be 664-6 condemned. 664-7 (e) If the district, in the exercise of the power of eminent 664-8 domain or power of relocation or any other power granted under this 664-9 chapter, makes necessary the relocation, raising, rerouting, 664-10 changing the grade, or altering the construction of any highway, 664-11 railroad, electric transmission line, or pipeline, all such 664-12 necessary relocation, raising, rerouting, changing of grade, or 664-13 alteration of construction shall be accomplished at the sole 664-14 expense of the district. 664-15 Sec. 274.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A 664-16 construction contract requiring an expenditure of more than $5,000 664-17 may be made only after publication of a notice to bidders once each 664-18 week for two weeks before awarding the contract. 664-19 (b) The notice required by this section is sufficient if it 664-20 states the time and place the bids will be opened and the general 664-21 nature of the work to be done or the material, equipment, or 664-22 supplies to be purchased and states where and the terms on which 664-23 copies of the plans and specifications may be obtained. The 664-24 publication of the notice shall be in a newspaper published in the 664-25 district and designated by the board. 664-26 Sec. 274.012. BONDS. (a) For the purpose of providing a 665-1 source of water supply for cities and other users for municipal, 665-2 domestic, and industrial purposes, as authorized by this chapter, 665-3 or of providing sewage disposal plants and related facilities, or 665-4 for both such purposes, and for the purpose of carrying out any 665-5 other power or authority conferred by this chapter, the district 665-6 may issue negotiable bonds payable from the revenues or taxes, or 665-7 both revenues and taxes, of the district as pledged by resolution 665-8 of the board. Pending the issuance of definitive bonds, the board 665-9 may authorize the delivery of negotiable interim bonds or notes 665-10 that are eligible for exchange or substitution by the definitive 665-11 bonds. 665-12 (b) Bonds must be authorized by resolution of the board and 665-13 shall be issued in the name of the district, signed by the 665-14 president or vice president, attested by the secretary, and have 665-15 the seal of the district impressed on the bonds. 665-16 (c) Bonds must mature serially or otherwise in not to exceed 665-17 40 years and may be sold at a price and under terms determined by 665-18 the board to be the most advantageous reasonably obtainable, 665-19 provided that the interest cost to the district, calculated by use 665-20 of standard bond interest tables currently in use by insurance 665-21 companies and investment houses, does not exceed six percent per 665-22 year. Within the discretion of the board, bonds may be made 665-23 callable prior to maturity at times and prices prescribed in the 665-24 resolution authorizing the bonds and may be made registrable as to 665-25 principal or as to both principal and interest. 665-26 (d) Bonds may be issued in more than one series and from 666-1 time to time as required for carrying out the purposes of this 666-2 chapter. 666-3 (e) Bonds may be secured by a pledge of all or part of the 666-4 net revenues of the district, of the net revenues of one or more 666-5 contracts made before or after the bonds are issued, or of other 666-6 revenues specified by resolution of the board. A pledge may 666-7 reserve the right, under conditions specified in the pledge, to 666-8 issue additional bonds that will be on a parity with or subordinate 666-9 to the bonds being issued. In this subsection, "net revenues" 666-10 means the gross revenues of the district less the amount necessary 666-11 to pay the cost of maintaining and operating the district and its 666-12 properties. Within the sole discretion of the board, the bonds may 666-13 be secured by the combined revenues of the district's water 666-14 properties and sewage disposal facilities or may be secured by 666-15 revenues from either of those sources. 666-16 (f) For the purposes stated in Subsection (a), the district 666-17 may issue bonds payable from ad valorem taxes to be levied on all 666-18 taxable property in the district or may issue bonds secured by and 666-19 payable from both the taxes and the revenues of the district, 666-20 subject to the conditions prescribed in Sections 274.015(a)-(c). 666-21 If bonds are issued that are payable wholly or partially from ad 666-22 valorem taxes, the board shall levy a tax sufficient to pay the 666-23 bonds and the interest on the bonds as the bonds and interest 666-24 become due. The rate of the tax for any year may be set after 666-25 giving consideration to the money received from the pledged 666-26 revenues available for payment of principal and interest to the 667-1 extent and in the manner permitted by the resolution authorizing 667-2 the issuance of the bonds. 667-3 (g) If bonds payable wholly from revenues are issued, the 667-4 board shall set, and from time to time revise, rates of 667-5 compensation for water sold and services rendered by the district 667-6 that will be sufficient to pay the expense of operating and 667-7 maintaining the facilities of the district, to pay the bonds as 667-8 they mature and the interest as it accrues, and to maintain the 667-9 reserve fund and other funds as provided in the resolution 667-10 authorizing the bonds. If bonds payable partially from revenues 667-11 are issued, the board shall set, and from time to time revise, 667-12 rates of compensation for water sold and services rendered by the 667-13 district that will be sufficient to assure compliance with the 667-14 resolution authorizing the bonds. 667-15 (h) From the proceeds from the sale of the bonds, the 667-16 district may set aside an amount for the payment of interest 667-17 expected to accrue during construction and for a reserve interest 667-18 and sinking fund, and such provision may be made in the resolution 667-19 authorizing the bonds. Proceeds from the sale of the bonds may 667-20 also be used for the payment of all expenses necessarily incurred 667-21 in accomplishing the purpose for which the district is created, 667-22 including the expenses of issuing and selling the bonds of creating 667-23 and organizing the district. 667-24 (i) The district may invest all or any part of the proceeds 667-25 of the bonds before and during the period of construction in 667-26 obligations of or in obligations unconditionally guaranteed by the 668-1 United States government. 668-2 (j) In the event of a default or a threatened default in the 668-3 payment of principal of or interest on bonds payable wholly or 668-4 partially from revenues, any court of competent jurisdiction may, 668-5 on petition of the holders of 25 percent of the outstanding bonds 668-6 of the issue in default or threatened with default, appoint a 668-7 receiver with authority to collect and receive all income of the 668-8 district except income from taxes, to employ and discharge agents 668-9 and employees of the district, to take charge of the district's 668-10 funds on hand (except funds received from taxes, unless 668-11 commingled), and to manage the proprietary affairs of the district 668-12 without consent or hindrance by the board. The receiver may also 668-13 be authorized to sell or make contracts for the sale of water or 668-14 renew the contracts with the approval of the court appointing the 668-15 receiver. The court may vest the receiver with other powers and 668-16 duties the court finds necessary for the protection of the holders 668-17 of the bonds. 668-18 Sec. 274.013. REFUNDING BONDS. (a) The district may issue 668-19 refunding bonds for the purpose of refunding any outstanding bonds 668-20 authorized by this chapter and interest on the bonds. The 668-21 refunding bonds may be issued to refund more than one series of 668-22 outstanding bonds and combine the pledges for the outstanding bonds 668-23 for the security of the refunding bonds, and the refunding bonds 668-24 may be secured by other or additional revenues. 668-25 (b) The provisions of this chapter with reference to the 668-26 issuance of other bonds by the district, the approval of the other 669-1 bonds by the attorney general, and the remedies of the holders are 669-2 applicable to refunding bonds. Refunding bonds shall be registered 669-3 by the comptroller on surrender and cancellation of the bonds to be 669-4 refunded, but in lieu of that process, the resolution authorizing 669-5 the issuance of the refunding bonds may provide that the bonds 669-6 shall be sold and the proceeds of the sale deposited in the bank 669-7 where the original bonds are payable, in which case the refunding 669-8 bonds may be issued in an amount sufficient to pay the interest on 669-9 the original bonds to their option date or maturity date, and the 669-10 comptroller shall register the refunding bonds without concurrent 669-11 surrender and cancellation of the original bonds. 669-12 Sec. 274.014. TRUST INDENTURE. Bonds, including refunding 669-13 bonds, authorized by this chapter that are not payable wholly from 669-14 ad valorem taxes may be additionally secured by a trust indenture 669-15 under which the trustee may be a bank with trust powers located 669-16 either within or outside the state. The bonds may, in the 669-17 discretion of the board, be additionally secured by a deed of trust 669-18 lien on physical properties of the district and all franchises, 669-19 easements, water rights and appropriation permits, leases, and 669-20 contracts and all rights appurtenant to the properties, vesting in 669-21 the trustee power to sell the properties for payment of the 669-22 indebtedness, power to operate the properties, and all other powers 669-23 and authority for the further security of the bonds. 669-24 (b) The trust indenture, regardless of the existence of a 669-25 deed of trust lien, may contain any provisions prescribed by the 669-26 board for the security of the bonds and the preservation of the 670-1 trust estate and may make provision for amendment or modification 670-2 of the trust indenture and the issuance of bonds to replace lost or 670-3 mutilated bonds. 670-4 (c) A purchaser under a sale under a deed of trust lien, 670-5 where one is given, shall be the owner of the properties, 670-6 facilities, and rights so purchased and shall have the right to 670-7 maintain and operate the properties, facilities, and rights. 670-8 Sec. 274.015. BOND ELECTIONS. (a) Bonds payable wholly or 670-9 partially from ad valorem taxes, except refunding bonds, may not be 670-10 issued unless authorized by an election at which only the qualified 670-11 voters who reside in the district may participate and a majority of 670-12 the votes cast at the election is in favor of the issuance of the 670-13 bonds. 670-14 (b) Before calling an election for the issuance of bonds 670-15 secured either wholly or partially by a pledge of ad valorem taxes, 670-16 the board shall publish, in the manner prescribed by this section, 670-17 a summary of the improvements to be financed with the proceeds of 670-18 bonds to be issued. If the district has not provided facilities 670-19 for delivering water to any city within the district and the 670-20 summary of improvements does not include provision for delivering 670-21 water to the city, the district shall publish in the city notice of 670-22 its intention, on a date specified in the notice, to call an 670-23 election involving the issuance of bonds, wholly or partly secured 670-24 by a pledge of ad valorem taxes. The notice must contain the 670-25 summary of the proposed improvements. The notice must be published 670-26 at least once in a newspaper published or having general 671-1 circulation in the city. The date of publication must be at least 671-2 14 days before the date on which the district intends to adopt a 671-3 resolution ordering the election. If no newspaper is published in 671-4 the city, notice shall be given by posting a copy of the notice of 671-5 intention at three public places in the city for at least 14 days 671-6 before the election is to be ordered. The district shall also mail 671-7 a copy of the notice to the mayor of the city at least 14 days 671-8 before the date on which the election is to be ordered. Before the 671-9 date of the election, the governing body of the city notified may 671-10 adopt a resolution stating that the district has not provided 671-11 facilities for delivering water to the city and does not propose to 671-12 provide the facilities necessary for that purpose with the proceeds 671-13 from the proposed tax-supported bonds on a reasonable cost basis; 671-14 stating that eliminating the city from the district for all 671-15 purposes is in the best interest for the people of the city; and 671-16 seeking withdrawal from the district. If, before the date 671-17 designated for the election, a certified copy of the resolution is 671-18 delivered to the district and to the commission, the district may 671-19 not proceed with the calling of an election until the commission 671-20 has acted finally on the request for withdrawal from the district. 671-21 (c) On receipt of a certified copy of a resolution from a 671-22 city requesting withdrawal from the district, the commission shall 671-23 set a date for a hearing on the request, giving written notice of 671-24 the hearing to the city and to the district. If at the hearing the 671-25 commission finds that no facilities have been provided to the city 671-26 and that none will be provided from proceeds of the proposed 672-1 tax-supported bond issue for the delivery of water to the city on a 672-2 reasonable cost basis, the commission shall enter an order 672-3 eliminating the city from the district. In lieu of a hearing the 672-4 district may file with the commission a consent to the elimination 672-5 of the territory. However, if the commission finds that the 672-6 facilities are available or will be provided from the proceeds of 672-7 the proposed bonds on a reasonable cost basis, the commission shall 672-8 enter an order denying the request for withdrawal. After the 672-9 commission enters the order, the district may order an election 672-10 with the city either eliminated or retained in the boundaries of 672-11 the district as prescribed in the order. 672-12 (d) An election for the issuance of bonds payable wholly or 672-13 partially from ad valorem taxes may be called by the board without 672-14 a petition. The resolution calling the election shall specify the 672-15 time and location of the election, the purpose for which the bonds 672-16 are to be issued, the maximum amount of the bonds, the maximum 672-17 maturity of the bonds, the form of the ballot, and the presiding 672-18 judge for each voting place. The presiding judge serving at each 672-19 voting place shall appoint one assistant judge and at least two 672-20 clerks to assist in holding the election. Notice of the election 672-21 shall be given by publishing a substantial copy of the resolution 672-22 in one newspaper published in each city contained in the district 672-23 for two consecutive weeks. The first publication must be at least 672-24 21 days prior to the election. If no newspaper is published in a 672-25 city, notice shall be given by posting a copy of the resolution in 672-26 three public places. 673-1 (e) The returns of the election shall be made to and 673-2 canvassed by the board. 673-3 (f) The general laws relating to elections apply to 673-4 elections held under this section except as otherwise provided by 673-5 this chapter. 673-6 (g) Bonds not payable wholly or partially from ad valorem 673-7 taxes may be issued without an election. 673-8 Sec. 274.016. APPROVAL AND REGISTRATION OF BONDS. After any 673-9 bonds, including refunding bonds, are authorized by the district, 673-10 the bonds and the record relating to their issuance shall be 673-11 submitted to the attorney general for examination as to the 673-12 validity of the bonds. If the bonds recite that they are secured 673-13 by a pledge of the proceeds of a contract previously made between 673-14 the district and a city or other governmental agency or district, a 673-15 copy of the contract and the proceedings of the city or other 673-16 governmental agency or district authorizing the contract shall also 673-17 be submitted to the attorney general. If the bonds have been 673-18 authorized and the contracts have been made in accordance with the 673-19 constitution and laws of the state, the attorney general shall 673-20 approve the bonds, and the contracts and the bonds shall then be 673-21 registered by the comptroller. After the approval and 673-22 registration, the bonds and the contracts, if any, are valid and 673-23 binding and are incontestable for any cause. 673-24 Sec. 274.017. WATER SUPPLY CONTRACTS. The district may 673-25 contract with cities and others for the purpose of supplying water 673-26 to them. The district may also contract with a city for the rental 674-1 or leasing of, or for the operation of, the water production, water 674-2 supply, or water filtration or purification and the water supply 674-3 facilities of the city for such consideration as the district and 674-4 the city may agree. The contract may be on the terms and for the 674-5 time as the parties may agree, and the contract may provide that it 674-6 shall continue in effect until bonds specified in the contract and 674-7 refunding bonds issued in lieu of the bonds are paid. 674-8 Sec. 274.018. DISTRICT DEPOSITORY. (a) The board shall 674-9 designate one or more banks within the district to serve as 674-10 depository or depositories for the funds of the district. All 674-11 funds of the district shall be deposited in the depository bank or 674-12 banks, except that funds pledged to pay bonds may be deposited with 674-13 the trustee bank named in the trust agreement and except that funds 674-14 shall be remitted to the bank of payment for the payment of 674-15 principal of and interest on bonds. To the extent that funds in 674-16 the depository banks and the trustee bank are not insured by the 674-17 Federal Deposit Insurance Corporation, the funds shall be secured 674-18 in the manner provided by law for the security of county funds, or 674-19 the resolution or trust agreement, or both, securing the bonds may 674-20 require that all such funds be secured by obligations of or 674-21 obligations unconditionally guaranteed by the United States 674-22 government. 674-23 (b) Before designating a depository bank or banks, the board 674-24 shall issue a notice stating the time and place the board will meet 674-25 for such purpose and inviting the banks in the district to submit 674-26 applications to be designated depositories. The notice must be 675-1 published one time in a newspaper or newspapers published in the 675-2 district and specified by the board. 675-3 (c) At the time stated in the notice of the meeting, the 675-4 board shall consider the applications and the management and 675-5 condition of the banks filing the applications and shall designate 675-6 as depositories the bank or banks that offer the most favorable 675-7 terms and conditions for the handling of the funds of the district 675-8 and that the board finds have proper management and are in 675-9 condition to warrant handling of district funds. Membership on the 675-10 board of an officer or director of a bank shall not disqualify the 675-11 bank from being designated as depository. 675-12 (d) If no applications are received by the time stated in 675-13 the notice of the meeting, the board shall designate a bank or 675-14 banks within or outside the district on the terms and conditions 675-15 the board determines advantageous to the district. 675-16 (e) The term of service for depositories shall be prescribed 675-17 by the board. 675-18 Sec. 274.019. WATER APPROPRIATION PERMITS; WATER SUPPLY 675-19 CONTRACTS. The district may acquire water appropriation permits 675-20 directly from the commission or from owners of permits. The 675-21 district may also purchase water or a water supply from any person, 675-22 firm, corporation, or public agency or from the United States 675-23 government or any of its agencies. The district may, within the 675-24 discretion of its board, contract with one or more large users of 675-25 water to acquire a water supply on an agreed allocation of storage 675-26 space between the district and the user, or the district may 676-1 contract independently for the district's water supply. 676-2 Sec. 274.020. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF 676-3 DEPOSITS. (a) All bonds of the district are legal and authorized 676-4 investments for banks, savings banks, trust companies, building and 676-5 loan associations, savings and loan associations, insurance 676-6 companies, fiduciaries, trustees, and guardians and for the sinking 676-7 funds of cities, towns, villages, counties, school districts, or 676-8 other political corporations or subdivisions of the state. 676-9 (b) District bonds are eligible to secure the deposit of all 676-10 public funds of the state and of cities, towns, villages, counties, 676-11 school districts, or other political corporations or subdivisions 676-12 of the state. The bonds shall be lawful and sufficient security 676-13 for such deposits to the extent of the value of the bonds when 676-14 accompanied by all unmatured coupons. 676-15 Sec. 274.021. EXEMPTION FROM TAXATION. The accomplishment 676-16 of the purposes stated in this chapter are for the benefit of the 676-17 people of this state and for the improvement of the properties and 676-18 industries of the state, and the district in carrying out the 676-19 purposes of this chapter will be performing an essential public 676-20 function under the constitution and shall not be required to pay a 676-21 tax or assessment on a project or any part of a project under this 676-22 chapter. The bonds issued under this chapter and the transfer of 676-23 and income from the bonds, including the profits made on the sale 676-24 of the bonds, are free from taxation within the state. 676-25 Sec. 274.022. ASSESSMENT, EQUALIZATION, LEVYING, AND 676-26 COLLECTION OF TAXES. (a) The tax rolls of the cities situated 677-1 within the district, and within territory later annexed, are 677-2 adopted and shall constitute the tax rolls of the district until 677-3 assessments and tax rolls are made by the district. 677-4 (b) Before the sale and delivery of district bonds that are 677-5 payable wholly or partially from ad valorem taxes, the board shall 677-6 appoint a tax assessor and collector and a board of equalization 677-7 and cause taxes to be assessed, valuations to be equalized, and tax 677-8 rolls to be prepared. General laws applicable to water control and 677-9 improvement districts with reference to tax assessors and 677-10 collectors, boards of equalization, tax rolls, and the levy and 677-11 collection of taxes and delinquent taxes are applicable to the 677-12 district, except that the board of equalization, which is to be 677-13 appointed each year by the board, shall consist of one member 677-14 residing in each city contained in the district. 677-15 Sec. 274.023. DISTRICT RULES AND REGULATIONS. (a) The 677-16 board may adopt and promulgate all reasonable rules and regulations 677-17 to secure, maintain, and preserve the sanitary condition of all 677-18 water in and to flow into any reservoir owned by the district, or 677-19 which the district may control by contract or otherwise, to prevent 677-20 the waste or the unauthorized use of the water, and to regulate 677-21 residence, hunting, fishing, boating, camping, and all recreational 677-22 and business privileges, along or around any reservoir or any body 677-23 of land or easement owned or controlled by the district. The 677-24 district shall have the same power to enforce the rules and 677-25 regulations as is accorded by law to water control and improvement 677-26 districts, except that the rules and regulations shall be enforced 678-1 by duly constituted peace officers. 678-2 Sec. 274.024. DISTRICT MAP. The board shall file a map and 678-3 plat of the district, clearly showing the boundaries and limits, 678-4 with each of the following offices: two copies with the Texas 678-5 Water Development Board, one copy with the secretary of state, and 678-6 one copy with the county clerk of each county in which any portion 678-7 of the district is located. 678-8 CHAPTER 275. TRINITY RIVER AUTHORITY OF TEXAS 678-9 Sec. 275.001. CREATION. (a) A conservation and reclamation 678-10 district to be known as the "Trinity River Authority of Texas" is 678-11 created. The authority is a governmental agency and a body politic 678-12 and corporate. 678-13 (b) The authority is created under and is essential to 678-14 accomplish the purposes of Section 59, Article XVI, Texas 678-15 Constitution. 678-16 Sec. 275.002. DEFINITIONS. In this chapter: 678-17 (1) "Authority" means the Trinity River Authority of 678-18 Texas. 678-19 (2) "Board" means the board of directors of the 678-20 authority. 678-21 (3) "Director" means a member of the board. 678-22 (4) "Person" means: 678-23 (A) an individual, partnership, corporation, 678-24 public utility, or other private entity; and 678-25 (B) a public agency. 678-26 (5) "Public agency" means an authority, district, 679-1 city, town, other political subdivision, joint board, or other 679-2 public agency created and operating under the laws of this state. 679-3 Sec. 275.003. BOUNDARIES. (a) The authority comprises all 679-4 the territory contained within the counties of Dallas, Tarrant, 679-5 Ellis, Navarro, and Chambers, and the following parts of counties: 679-6 ANDERSON COUNTY 679-7 All of that portion of Anderson County located west of the 679-8 following described line: 679-9 BEGINNING at the point of intersection of the west line of 679-10 the J. Huntingdon Survey with the north line of Anderson County; 679-11 THENCE south along the west lines of the J. Huntingdon Survey 679-12 and the Isaac Lindsey Survey to the southwest corner of said Isaac 679-13 Lindsey Survey; 679-14 THENCE east along the south line of the Isaac Lindsey Survey 679-15 to the northwest corner of the Adolphus D. Lattin Survey; 679-16 THENCE south along the west line of the Adolphus D. Lattin 679-17 Survey to the southwest corner of said Survey; 679-18 THENCE east along the south line of the Adolphus D. Lattin 679-19 Survey to the northwest corner of the John Cantrell Survey; 679-20 THENCE south along the west line of the John Cantrell Survey 679-21 to the southwest corner of said Survey; 679-22 THENCE west along the north line of the Elizabeth Grace 679-23 Survey to the northwest corner of said Survey; 679-24 THENCE south along the west line of the Elizabeth Grace 679-25 Survey to the southwest corner of said Survey; 679-26 THENCE east along the north line of the John N. Fitzgerald 680-1 Survey to the northwest corner of said Survey; 680-2 THENCE south along the west line of the Jesse B. McNealy 680-3 Survey to the southwest corner of said Survey; 680-4 THENCE east along the south line of the Jesse B. McNealy 680-5 Survey to the southeast corner of said Survey; 680-6 THENCE south along the west line of the William Elliott 680-7 Survey to the southwest corner of said Survey; 680-8 THENCE east along the south line of the William Elliott 680-9 Survey to the northwest corner of the Joseph Humphries Survey; 680-10 THENCE south along the west line of the Joseph Humphries 680-11 Survey to the southwest corner of said Survey; 680-12 THENCE west along the north line of the Peter Hinds Survey to 680-13 a northwest corner of said Survey; 680-14 THENCE south along the west line of the Peter Hinds Survey to 680-15 a southeast corner of the Daniel Faris Survey; 680-16 THENCE west along the south line of the Daniel Faris Survey 680-17 to a northwest corner of the Peter Hinds Survey; 680-18 THENCE south along the west line of the Peter Hinds Survey to 680-19 the point of intersection with the north line of the William Kimbro 680-20 Survey; 680-21 THENCE east along the north line of the William Kimbro Survey 680-22 to the northeast corner of said Survey; 680-23 THENCE south along the east line of the William Kimbro Survey 680-24 to the northwest corner of the Samuel G. Wells Survey; 680-25 THENCE southeasterly along the east lines of the D. M. 680-26 McKenzie Survey, the Jacob Snively Survey and the John Arthur 681-1 Survey to the southeast corner of said John Arthur Survey; 681-2 THENCE southeasterly across the William S. McDonald Survey to 681-3 the northeast corner of the Stephen Crist Survey; 681-4 THENCE south along the east line of the Stephen Crist Survey 681-5 to the northwest corner of the Alpheus Wickware Survey; 681-6 THENCE east along the north line of the Alpheus Wickware 681-7 Survey to the northeast corner of said Survey; 681-8 THENCE south along the east line of the Alpheus Wickware 681-9 Survey to the southeast corner of said Survey, being also the point 681-10 of intersection with the north line of the Alfred B. Davis Survey; 681-11 THENCE easterly along the north line of the Alfred B. Davis 681-12 Survey to the northeast corner of said Survey; 681-13 THENCE southerly along the east line of the Alfred B. Davis 681-14 Survey and the William Frost Survey to the southwest corner of the 681-15 Geremiah V. Morgan Survey; 681-16 THENCE east along the south line of the Geremiah V. Morgan 681-17 Survey to the southeast corner of said Survey; 681-18 THENCE south along the east lines of the J. H. Gillespie 681-19 Survey and the W. T. Hamilton Survey to a southeast corner of said 681-20 W. T. Hamilton Survey, being also the point of intersection with 681-21 the north line of the Ely Falkenberg Survey; 681-22 THENCE westerly along the north line of the Ely Falkenberg 681-23 Survey to the northwest corner of said Survey; 681-24 THENCE southerly along the west line of the Ely Falkenberg 681-25 Survey to the southwest corner of said Survey; 681-26 THENCE easterly along the south line of the Ely Falkenberg 682-1 Survey to the point of intersection with the east line of the 682-2 William T. Davis Survey, being also the west line of the David 682-3 Stilts Survey; 682-4 THENCE southerly along the east line of the William T. Davis 682-5 Survey to the southwest corner of the David Stilts Survey; 682-6 THENCE easterly along the north line of the William T. Davis 682-7 survey to the northeast corner of said Survey; 682-8 THENCE southerly along the east line of the William T. Davis 682-9 Survey, being also along the west line of the J. C. Rosson Survey, 682-10 to the point of intersection with the northwest line of the Philip 682-11 Mortin Survey; 682-12 THENCE northeasterly along the northwest line of the Philip 682-13 Mortin Survey to the most northerly corner of said Survey; 682-14 THENCE southeasterly along the northeast line of the Philip 682-15 Mortin Survey to the southeast corner of said Survey; 682-16 THENCE southeasterly along the northeast line of the 682-17 Nathaniel Morgan Survey to the southeast corner of said Survey; 682-18 THENCE south along the west line of the William R. Wilson 682-19 Survey to the southwest corner of said Survey; 682-20 THENCE southwesterly along the northwest line of the James 682-21 Hunter Survey to the most westerly corner of said Survey; 682-22 THENCE southeasterly along the southwest lines of the James 682-23 Hunter Survey and the P. M. Lamerson Survey to the southwest corner 682-24 of said P. M. Lamerson Survey; 682-25 THENCE west along the north line of the John Parker Survey to 682-26 the northwest corner of said Survey; 683-1 THENCE south along the west line of the John Parker Survey to 683-2 the southeast corner of the Daniel Kennedy Survey; 683-3 THENCE east along the north line of the Eli Chaffin Survey to 683-4 the northeast corner of said Survey; 683-5 THENCE south along the east line of the Eli Chaffin Survey to 683-6 the point of intersection with the south line of Anderson County. 683-7 FREESTONE COUNTY 683-8 All of that portion of Freestone County located northeast of 683-9 the following described line: 683-10 BEGINNING at the point of intersection of the south line of 683-11 the S. Garrison Survey with the southwest line of Freestone County; 683-12 THENCE east along the south line of the S. Garrison Survey to 683-13 the southeast corner of said Survey; 683-14 THENCE north along the east line of the S. Garrison Survey to 683-15 the southwest corner of the William T. Gamble Survey; 683-16 THENCE east along the north line of the M. R. Alsron Survey 683-17 to the northeast corner of said Survey; 683-18 THENCE south along the east line of the M. R. Alsron Survey 683-19 to the northwest corner of the William Whitley Survey; 683-20 THENCE east along the north line of the William Whitley 683-21 Survey to the northeast corner of said Survey; 683-22 THENCE south along the east line of the William Whitley 683-23 Survey to the southeast corner of said Survey; 683-24 THENCE east across the Maria de Cantun Survey and along the 683-25 north line of the S. W. Lamar Survey to the northeast corner of the 683-26 S. W. Lamar Survey; 684-1 THENCE south along the east line of the S. W. Lamar Survey to 684-2 the northwest corner of the W. Carter Survey; 684-3 THENCE east along the north line of the W. Carter Survey to 684-4 the northeast corner of said Survey; 684-5 THENCE south along the east line of the W. Carter Survey to 684-6 the southwest corner of the J. H. Webb Survey; 684-7 THENCE east along the south line of the J. H. Webb Survey to 684-8 the southeast corner of said Survey; 684-9 THENCE south along the west line of the R. A. Nelson Survey 684-10 to the southwest corner of said Survey; 684-11 THENCE east along the south line of the R. A. Nelson Survey 684-12 to the northwest corner of the T. H. Davis Survey; 684-13 THENCE south along the west line of the T. H. Davis Survey to 684-14 the southwest corner of said Survey; 684-15 THENCE east along the south line of the T. H. Davis Survey to 684-16 the northeast corner of the Caleb Moul Survey; 684-17 THENCE south along the west line of the J. Langston Survey to 684-18 the southwest corner of said Survey; 684-19 THENCE east along the south line of the J. Langston Survey to 684-20 the southeast corner of said Survey; 684-21 THENCE south along the west line of the J. Graham Survey to 684-22 the southwest corner of said Survey; 684-23 THENCE east along the south line of the J. Graham Survey to 684-24 the northeast corner of the Thomas P. Shapard Survey; 684-25 THENCE southeasterly along the northeast line of the Thomas 684-26 P. Shapard Survey and the Francis O'Neal Survey to the point of 685-1 intersection with the northwest line of the James Strickland 685-2 Survey; 685-3 THENCE northeasterly along the northwest line of the James 685-4 Strickland Survey to the most northerly corner of said Survey; 685-5 THENCE southeasterly along the southwest lines of the R. 685-6 Lawson, John Lawrence, William H. Hickman Surveys to the southwest 685-7 corner of the William H. Hickman Survey, being also the southeast 685-8 corner of the James Moffitt Survey; 685-9 THENCE southwesterly along the northwest line of the John R. 685-10 Jennings Survey to the northwest corner of said Survey; 685-11 THENCE southeasterly along the southwest line of the John R. 685-12 Jennings Survey to a southeast corner of the L. J. Parker Survey; 685-13 THENCE southerly across the David Bullock Survey to the most 685-14 southerly corner of said Survey; 685-15 THENCE southeasterly along the northeast lines of the N. Peck 685-16 Survey and the G. Diaz Survey to the southeast corner of the G. 685-17 Diaz Survey, being also the point of intersection with the 685-18 southeast line of Freestone County. 685-19 HENDERSON COUNTY 685-20 All of that portion of Henderson County located West of State 685-21 Highway 19. 685-22 HOUSTON COUNTY 685-23 All of that portion of Houston County located west of the 685-24 following described lines: 685-25 BEGINNING at the point of intersection of the east line of 685-26 the Eli Chaffin Survey with the north line of Houston County; 686-1 THENCE south along the east line of the Eli Chaffin Survey to 686-2 the southwest corner of the John Parker Survey; 686-3 THENCE east along the north line of the J. S. Caskey Survey 686-4 to the northeast corner of said Survey; 686-5 THENCE south along the west line of the Z. W. Dillard Survey 686-6 to the southwest corner of said Survey; 686-7 THENCE west along the north line of the Benjamin Parker 686-8 Survey to the northwest corner of said Survey; 686-9 THENCE south along the west line of the Benjamin Parker 686-10 Survey to the southeast corner of the Simon Matthews Survey; 686-11 THENCE east along the north line of the J. J. Whitesides 686-12 Survey to the northeast corner of said Survey; 686-13 THENCE south along the east lines of the J. J. Whitesides 686-14 Survey and the Caleb Wallace Survey to the southeast corner of said 686-15 Caleb Wallace Survey; 686-16 THENCE west along the south line of the Caleb Wallace Survey 686-17 to the point of intersection with the east line of the James W. 686-18 Parker Survey; 686-19 THENCE south along the east line of the James W. Parker 686-20 Survey to the southeast corner of said Survey; 686-21 THENCE east along the north line of the Christiana Breece 686-22 Survey to the northeast corner of said Survey; 686-23 THENCE south along the east line of the Christiana Breece 686-24 Survey to the point of intersection with the north line of the L. 686-25 Carpenter Survey; 686-26 THENCE east along the north line of the L. Carpenter Survey 687-1 to the northeast corner of said Survey; 687-2 THENCE southeasterly along the east line of the L. Carpenter 687-3 Survey to the southeast corner of said Survey; 687-4 THENCE northeasterly along the north line of the Eli Stedman 687-5 Survey to the northeast corner of said Survey; 687-6 THENCE south along the east lines of the Eli Stedman Survey 687-7 and the J. F. Martin Survey to the southwest corner of the William 687-8 Burke Survey; 687-9 THENCE east along the south line of the William Burke Survey 687-10 to the southeast corner of said Survey; 687-11 THENCE south along the west line of the John Ellison Survey 687-12 to the southwest corner of said Survey; 687-13 THENCE east along the north line of the Fred Hemminger Survey 687-14 to the northeast corner of said Survey; 687-15 THENCE south along the west line of the Jacob Cutler Survey 687-16 to the southwest corner of said Survey; 687-17 THENCE east along the south line of the Jacob Cutler Survey 687-18 to the southeast corner of said Survey; 687-19 THENCE south along the west line of the J. C. Skidmore Survey 687-20 to the southwest corner of said Survey; 687-21 THENCE east along the south lines of the J. C. Skidmore 687-22 Survey and the J. W. Willingham Survey to the northwest corner of 687-23 the R. J. Weisinger Survey; 687-24 THENCE south along the west line of the R. J. Weisinger 687-25 Survey to the southwest corner of said Survey; 687-26 THENCE east along the south line of the R. J. Weisinger 688-1 Survey to the southeast corner of said Survey; 688-2 THENCE south along the west line of the M. N. Bates Survey to 688-3 the southwest corner of said Survey; 688-4 THENCE east along the south line of the M. N. Bates Survey to 688-5 the northwest corner of the Philip R. Hefley Survey; 688-6 THENCE south along the west line of the Philip R. Hefley 688-7 Survey to the southwest corner of said Survey; 688-8 THENCE east along the north line of the Joel Young Survey to 688-9 the northeast corner of said Survey; 688-10 THENCE south along the west line of the H. Durst, Jr. Survey 688-11 to the southwest corner of said Survey; 688-12 THENCE east along the south lines of the H. Durst, Jr. 688-13 Survey, the J. D. Dickey Survey and the W. T. Dickey Survey to the 688-14 southeast corner of said W. T. Dickey Survey; 688-15 THENCE south along the west lines of the George Grounds 688-16 Survey and the John F. Allen Survey to the point of intersection 688-17 with the north line of the John M. Box Survey; 688-18 THENCE east along the north line of the John M. Box Survey to 688-19 the northeast corner of said Survey; 688-20 THENCE south along the east line of the John M. Box Survey to 688-21 the northwest corner of the J. E. Allen Survey; 688-22 THENCE east along the north line of the J. E. Allen Survey to 688-23 the northeast corner of said Survey, being the point of 688-24 intersection with the southwest line of the John McCarty Survey; 688-25 THENCE southeasterly along the southwest line of the John 688-26 McCarty Survey to the most southerly corner of said Survey; 689-1 THENCE northeasterly along the southeast line of the John 689-2 McCarty Survey to the most northerly corner of the Benjamin S. Heam 689-3 Survey; 689-4 THENCE southeasterly along the northeast line of the Benjamin 689-5 S. Heam Survey to the most easterly corner of said Survey; 689-6 THENCE southwesterly along the southeast line of the Benjamin 689-7 S. Heam Survey to the most westerly corner of the William Adams 689-8 Survey; 689-9 THENCE southeasterly along the southwest line of the William 689-10 Adams Survey to the most southerly corner of said Survey; 689-11 THENCE northeasterly along the southeast line of the William 689-12 Adams Survey to the most northerly corner of the E. T. Allen 689-13 Survey, being also the most westerly corner of the S. C. Hiram 689-14 Survey; 689-15 THENCE southeasterly along the northeast line of the E. T. 689-16 Allen Survey to the most easterly corner of said Survey; 689-17 THENCE southwesterly along the northwest line of the Jacob 689-18 Masters, Sr. Survey to the most westerly corner of said Survey; 689-19 THENCE southeasterly along the southwest lines of the Jacob 689-20 Masters, Sr. Survey and the John Gossett Survey to the southwest 689-21 corner of said John Gossett Survey; 689-22 THENCE easterly along the south lines of the John Gossett 689-23 Survey and the Solomon Albright Survey to the northeast corner of 689-24 the William H. Kennedy Survey; 689-25 THENCE south along the east line of the William H. Kennedy 689-26 Survey to the northwest corner of the Luke Bust Survey; 690-1 THENCE east along the north line of the Luke Bust Survey to 690-2 the northeast corner of said Survey; 690-3 THENCE south along the east line of the Luke Bust Survey to 690-4 the southeast corner of said Survey; 690-5 THENCE east along the north line of the James McLane Survey 690-6 to the northeast corner of said Survey; 690-7 THENCE south along the east lines of the James McLane Survey 690-8 and the H. Coulton Survey to the southwest corner of the Garrett 690-9 Allen Survey; 690-10 THENCE east along the north line of the H. Coulton Survey to 690-11 the northeast corner of said Survey; 690-12 THENCE south along the east line of the H. Coulton Survey to 690-13 the southeast corner of said Survey; 690-14 THENCE east along the north line of the J. R. Hancock Survey 690-15 to the northeast corner of said Survey; 690-16 THENCE south along the east line of the J. R. Hancock Survey 690-17 to the southeast corner of said Survey; 690-18 THENCE east along the north line of the Levi Speer Survey to 690-19 the northeast corner of said Survey; 690-20 THENCE south along the east line of the Levi Speer Survey to 690-21 the southeast corner of said Survey; 690-22 THENCE east along the north line of the C. B. Brent Survey to 690-23 the northeast corner of said Survey; 690-24 THENCE south along the east line of the C. B. Brent Survey to 690-25 the southeast corner of said Survey; 690-26 THENCE easterly along the north line of the J. R. Hancock 691-1 Survey to the northeast corner of said Survey; 691-2 THENCE southeasterly along the east line of the J. R. Hancock 691-3 Survey to the southeast corner of said Survey; 691-4 THENCE northeasterly along the northwest line of the C. B. 691-5 Brent Survey to the most northerly corner of said Survey; 691-6 THENCE southeasterly along the northeast line of the C. B. 691-7 Brent Survey to the most easterly corner of said Survey; 691-8 THENCE southwesterly along the southeast line of the C. B. 691-9 Brent Survey to the most southerly corner of said Survey; 691-10 THENCE southeasterly along the northeast line of the J. W. 691-11 Moore Survey to the most easterly corner of said Survey; 691-12 THENCE southwesterly along the southeast line of the J. W. 691-13 Moore Survey to the most southerly corner of said Survey; 691-14 THENCE southeasterly along the southwest line of the Calvin 691-15 C. Robinett Survey to the southwest corner of said Survey, being 691-16 also the southeast corner of the George W. Hallmark Survey. 691-17 THENCE east along the south line of the Calvin C. Robinett 691-18 Survey to the southeast corner of said Survey; 691-19 THENCE north along the east line of the Calvin C. Robinett 691-20 Survey to the southwest corner of the Samuel Harris Survey; 691-21 THENCE east along the south line of the Samuel Harris Survey 691-22 to the northwest corner of the I. & G. N. Railroad Company Survey, 691-23 Abstract No. 583; 691-24 THENCE south along the west line of the I. & G. N. Railroad 691-25 Company Survey, Abstract No. 583, to the southwest corner of said 691-26 Survey; 692-1 THENCE east along the south line of the I. & G. N. Railroad 692-2 Company Survey, Abstract No. 583, to the northwest corner of the I. 692-3 & G. N. Railroad Company Survey, Abstract No. 584; 692-4 THENCE south along the west line of the I. & G. N. Railroad 692-5 Company Survey, Abstract No. 584, to the southwest corner of said 692-6 Survey, being also the point of intersection with the north line of 692-7 the Peter Tumlinson Survey; 692-8 THENCE easterly along the north line of the Peter Tumlinson 692-9 Survey to the northeast corner of said Survey; 692-10 THENCE southerly along the east line of the Peter Tumlinson 692-11 Survey to the southeast corner of said Survey; 692-12 THENCE westerly along the south line of the Peter Tumlinson 692-13 Survey to the northeast corner of the Jacob Perkins Survey; 692-14 THENCE southerly along the west line of the B. B. B. & C. 692-15 Railroad Company Survey to the southwest corner of said Survey; 692-16 THENCE easterly along the south line of the B. B. B. & C. 692-17 Railroad Company Survey to the west corner of the H. Harris Survey, 692-18 being also the northwest corner of the Sam James Survey; 692-19 THENCE southerly along the west lines of the Sam James Survey 692-20 and the William Ashworth Survey to the southwest corner of said 692-21 William Ashworth Survey; 692-22 THENCE easterly along the south line of the William Ashworth 692-23 Survey to the northwest corner of the W. G. Sterling Survey; 692-24 THENCE southerly along the west line of the W. G. Sterling 692-25 Survey to the point of intersection with the north line of the John 692-26 Watts Survey; 693-1 THENCE easterly along the north line of the John Watts Survey 693-2 to the northeast corner of said Survey; 693-3 THENCE southerly along the east line of the John Watts Survey 693-4 to the southeast corner of said Survey; 693-5 THENCE easterly along the south line of the W. G. Sterling 693-6 Survey to the point of intersection with the southeast line of 693-7 Houston County. 693-8 KAUFMAN COUNTY 693-9 All of that portion of Kaufman County located southwest of 693-10 the following described line: 693-11 BEGINNING at the point of intersection of the northwest line 693-12 of the Elisha Turner Survey, Abstract No. 529, with the north line 693-13 of Kaufman County; 693-14 THENCE southwest along the northwest line of the Elisha 693-15 Turner Survey, Abstract No. 529, to the west corner of said Survey; 693-16 THENCE southeast along the southwest line of the Elisha 693-17 Turner Survey, Abstract No. 529, to the south corner of said 693-18 Survey; 693-19 THENCE northeast along the southeast line of the Elisha 693-20 Turner Survey, Abstract No. 529, to the west corner of the Thomas 693-21 Hunt Survey; 693-22 THENCE southeast along the southwest line of the Thomas Hunt 693-23 Survey to the south corner of said Survey; 693-24 THENCE northeast along the southeast lines of the Thomas Hunt 693-25 Survey and the Benjamin Lindsey Survey to the east corner of said 693-26 Benjamin Lindsey Survey; 694-1 THENCE southeast along the northeast lines of the H. H. Greer 694-2 Survey, the George Hiden Survey, the Mrs. Elizabeth Parsons Survey, 694-3 the William Fulcher Survey, and the Juana Escalan Survey to the 694-4 point of intersection with the east line of Kaufman County. 694-5 LEON COUNTY 694-6 All that portion of Leon County located east of the following 694-7 described line: 694-8 BEGINNING at the point of intersection of the northeast line 694-9 of the Gertrudis Diaz Survey with the northwest line of Leon 694-10 County; 694-11 THENCE southeast along the northeast line of the Gertrudis 694-12 Diaz Survey to the most easterly corner of said Survey; 694-13 THENCE southwest along the southeast line of the Gertrudis 694-14 Diaz Survey to the most southerly corner of said Survey; 694-15 THENCE southeast along the northeast line of the William F. 694-16 Gray Survey to the most easterly corner of said Survey; 694-17 THENCE southwest along the northwest line of the H. R. 694-18 Cartmell Survey to the most westerly corner of said Survey; 694-19 THENCE southeast along the southwest line of the H. R. 694-20 Cartmell Survey to the most southerly corner of said Survey; 694-21 THENCE northeast along the northwest line of the James W. 694-22 Dodson Survey to the most northerly corner of said Survey; 694-23 THENCE southeast along the northeast line of the James W. 694-24 Dodson Survey to the most easterly corner of said Survey; 694-25 THENCE southwest along the southeast line of the James W. 694-26 Dodson Survey to the most northerly corner of the C. Haynie Survey; 695-1 THENCE southeast along the northeast line of the C. Haynie 695-2 Survey to the most easterly corner of said Survey; 695-3 THENCE northeast along the northwest line of the John L. Wall 695-4 Survey to the most northerly corner of said Survey; 695-5 THENCE southeast along the southwest lines of the James D. 695-6 McBeath Survey, the H. Porter Survey, the Benjamin Green Survey, 695-7 and the William H. Barritt Survey to the most southerly corner of 695-8 the said William H. Barritt Survey; 695-9 THENCE southeast along the southwest line of the Noah Guinn 695-10 Survey to the most southerly corner of said Survey; 695-11 THENCE southwest along the northwest line of the London 695-12 Webster Survey to the most westerly corner of said Survey; 695-13 THENCE southeast along the southwest line of the London 695-14 Webster Survey to the most northerly corner of the M. Williams 695-15 Survey; 695-16 THENCE southwest along the northwest line of the M. Williams 695-17 Survey to the most westerly corner of said Survey; 695-18 THENCE southeast along the northeast line of the John Fuller 695-19 Survey to the most easterly corner of said Survey; 695-20 THENCE southwest along the southeast line of the John Fuller 695-21 Survey to the most southerly corner of said Survey; 695-22 THENCE southeast along the northeast line of the George E. 695-23 Dwight Survey to the most easterly corner of said Survey; 695-24 THENCE southeast along the southwest line of the George E. 695-25 Dwight Survey to the point of intersection with the southwest line 695-26 of the William Bolton Survey; 696-1 THENCE southeast along the southwest line of the William 696-2 Bolton Survey to the most southerly corner of said Survey; 696-3 THENCE southwest along the northwest line of the Elisha H. 696-4 Whitton Survey to the most westerly corner of said Survey; 696-5 THENCE southeast along the southwest line of the Elisha H. 696-6 Whitton Survey to the most southerly corner of said Survey; 696-7 THENCE southwest along the northwest line of the Samuel 696-8 Philips Survey to the most westerly corner of said Survey; 696-9 THENCE southeast along the southwest line of the Samuel 696-10 Philips Survey to the most southerly corner of said Survey; 696-11 THENCE southwest along the northwest lines of the A. M. 696-12 Halmark Survey, the Charles Jones Survey, and the John W. Hallett 696-13 Survey to the most westerly corner of said John W. Hallett Survey; 696-14 THENCE southeast along the southwest line of the John W. 696-15 Hallett Survey to the point of intersection with the northwest line 696-16 of the C. Ballard Survey; 696-17 THENCE southwest along the northwest line of the C. Ballard 696-18 Survey to the most westerly corner of said Survey; 696-19 THENCE southeast along the southwest line of the C. Ballard 696-20 Survey to the most southerly corner of said Survey; 696-21 THENCE southwest along the northwest line of the Milton 696-22 Fuller Survey to the most westerly corner of said Survey; 696-23 THENCE southeast along the southwest line of the Milton 696-24 Fuller Survey to the point of intersection with the northwest line 696-25 of the William H. Fletcher Survey; 696-26 THENCE southwest along the northwest line of the William H. 697-1 Fletcher Survey to the most westerly corner of said Survey; 697-2 THENCE southeast along the southwest line of the William H. 697-3 Fletcher Survey to the most southerly corner of said Survey; 697-4 THENCE northeast along the southeast line of the William H. 697-5 Fletcher Survey to the point of intersection with the northeast 697-6 line of the James Keeling Survey; 697-7 THENCE southeast along the northeast line of the James 697-8 Keeling Survey to the most easterly corner of said Survey; 697-9 THENCE southwest along the northwest lines of the J. W. 697-10 Waltman Survey and the L. H. Simms Survey to the most westerly 697-11 corner of said L. H. Simms Survey; 697-12 THENCE southeast along the southwest line of the L. H. Simms 697-13 Survey to the most southerly corner of said Survey; 697-14 THENCE southwest along the northwest line of the Warrick 697-15 Martin Survey to the most westerly corner of said Survey; 697-16 THENCE southeast along the southwest lines of the Warrick 697-17 Martin Survey and the Washington Beaty Survey to the most southerly 697-18 corner of said Washington Beaty Survey; 697-19 THENCE southwest along the northwest line of the John 697-20 Schritchfield Survey to the northwest corner of said Survey; 697-21 THENCE southeast along the southwest line of the John 697-22 Schritchfield Survey to a corner, being also the most easterly 697-23 corner of the Jose Maria Viesca XI Leagues; 697-24 THENCE southwest along the northwest line of the John 697-25 Schritchfield Survey to the point of intersection with the 697-26 northeast line of the James M. Robinson Survey; 698-1 THENCE southeast along the southwest line of the John 698-2 Schritchfield Survey to the most southerly corner of said Survey; 698-3 THENCE northeast along the northwest line of the Robert 698-4 Ragers Survey to the most northerly corner of said Survey; 698-5 THENCE southeast along the northeast line of the Robert 698-6 Ragers Survey to the point of intersection with the southeast line 698-7 of Leon County. 698-8 MADISON COUNTY 698-9 All of that portion of Madison County located east of the 698-10 following described line: 698-11 BEGINNING at the point of intersection of the west line of 698-12 the John Woodruff Survey with the northwest line of Madison County; 698-13 THENCE south along the west line of the John Woodruff Survey 698-14 to the southwest corner of said Survey; 698-15 THENCE east along the south line of the John Woodruff Survey 698-16 to the northwest corner of the William Thompson Survey; 698-17 THENCE south along the west line of the William Thompson 698-18 Survey to the southwest corner of said Survey; 698-19 THENCE east along the south line of the William Thompson 698-20 Survey to the southeast corner of said Survey; 698-21 THENCE south along the east lines of the Champion Blythe 698-22 Survey, the Peter Fullenwider Survey, the L. M. H. Washington 698-23 Survey, the John T. Vaughan Survey and the John Payne Survey to the 698-24 point of intersection with the south line of Madison County. 698-25 POLK COUNTY 698-26 All of that portion of Polk County located west of the 699-1 following described line: 699-2 BEGINNING at the point of intersection of the south line of 699-3 the J. V. Bradley Survey, being also the north line of the Houston 699-4 County School Land Survey, with the northwest line of Polk County; 699-5 THENCE east along the north line of the Houston County School 699-6 Land Survey, Abstract No. 272, to the northeast corner of said 699-7 Survey; 699-8 THENCE south along the east line of the Houston County School 699-9 Land Survey to the southwest corner of the Houston County School 699-10 Land Survey, Abstract No. 271, being also the point of intersection 699-11 with the north line of the Trinity County School Land Survey; 699-12 THENCE east along the north lines of the Trinity County 699-13 School Land Survey, the J. F. White Survey, the J. A. Bahr Survey, 699-14 and the J. Poitevent Survey to the northeast corner of said J. 699-15 Poitevent Survey; 699-16 THENCE south along the east line of the J. Poitevent Survey 699-17 to the southwest corner of the Shepherd Brazelton Survey; 699-18 THENCE east along the south lines of the Shepherd Brazelton 699-19 Survey, the Wm. H. Huggins Survey, and the Abraham Vannordstrand 699-20 Survey to the southeast corner of said Abraham Vannordstrand 699-21 Survey; 699-22 THENCE south along the east line of the Chas. Bender Survey 699-23 to the southwest corner of the J. Poitevent Survey; 699-24 THENCE east along the south line of the J. Poitevent Survey 699-25 to the point of intersection with the west line of the Joseph P. 699-26 Follett Survey; 700-1 THENCE south along the west line of the Joseph P. Follett 700-2 Survey to the southwest corner of said Survey; 700-3 THENCE east along the north line of the John Watts Survey to 700-4 the northeast corner of said Survey; 700-5 THENCE north along the west line of the John Dickerson Survey 700-6 to the northwest corner of said Survey; 700-7 THENCE east along the north line of the John Dickerson Survey 700-8 to the northeast corner of said Survey; 700-9 THENCE south along the east line of the John Dickerson Survey 700-10 to the southeast corner of said Survey; 700-11 THENCE west along the south line of the John Dickerson Survey 700-12 to the northwest corner of the Alex Johnson Survey; 700-13 THENCE south along the west line of the Alex Johnson Survey 700-14 to the southwest corner of said Survey; 700-15 THENCE east along the south line of the Alex Johnson Survey 700-16 to the northwest corner of the M. J. Taylor Survey; 700-17 THENCE south along the west lines of the M. J. Taylor Survey, 700-18 the John McSpaden Survey, Abstract No. 881, and the John McSpaden 700-19 Survey, Abstract No. 817, and the H. & T. C. R. R. Co. Survey, 700-20 Abstract No. 315 to the southwest corner of said H. & T. C. R. R. 700-21 Co. Survey; 700-22 THENCE east along the south line of the H. & T. C. R. R. Co. 700-23 Survey, Abstract No. 315, to the point of intersection with the 700-24 west line of the D. B. Harris Survey; 700-25 THENCE south along the east line of the H. & T. C. R. R. Co. 700-26 Survey, Abstract No. 314, to the point of intersection with the 701-1 northeast line of the Wm. P. Sansom Survey; 701-2 THENCE northwest along the northeast line of the Wm. P. 701-3 Sansom Survey to the most northerly corner of said Survey; 701-4 THENCE southwest along the northwest line of the Wm. P. 701-5 Sansom Survey to the point of intersection with the east line of 701-6 the N. D. Labadie Survey; 701-7 THENCE south along the east line of the N. D. Labadie Survey 701-8 to the point of intersection with the northwest line of the Iradel 701-9 D. Thomas Survey; 701-10 THENCE southwest along the northwest line of the Iradel D. 701-11 Thomas Survey to the most westerly corner of said Survey; 701-12 THENCE southeast along the southwest line of the Iradel D. 701-13 Thomas Survey to the most southerly corner of said Survey; 701-14 THENCE southwest along the northwest line of the Morris 701-15 Tanner Survey to the most westerly corner of said Survey; 701-16 THENCE southeast along the southwest line of the Morris 701-17 Tanner Survey to the most southerly corner of said Survey; 701-18 THENCE southwest along the northwest line of the Henry H. 701-19 Cone Survey to the most westerly corner of said Survey; 701-20 THENCE southeast along the southwest line of the Henry H. 701-21 Cone Survey to the point of intersection with the northwest line of 701-22 the Jeremiah Chessen Survey; 701-23 THENCE southwest along the northwest line of the Jeremiah 701-24 Chessen Survey to the most westerly corner of said Survey; 701-25 THENCE southeast along the southwest line of the Jeremiah 701-26 Chessen Survey to the most northerly corner of the A. D. Bateman 702-1 Survey; 702-2 THENCE southwest along the northwest line of the A. D. 702-3 Bateman Survey to the most westerly corner of said Survey; 702-4 THENCE southeast along the southwest line of the A. D. 702-5 Bateman Survey to the most southerly corner of said Survey; 702-6 THENCE southwest along the northwest line of the James G. 702-7 Darden Survey to the point of intersection with the northeast line 702-8 of the Joseph B. Jones Survey; 702-9 THENCE southeast along the southwest line of the James D. 702-10 Darden Survey to the point of intersection with the northwest line 702-11 of the Juan Falcon Survey; 702-12 THENCE southwest along the northwest line of the Juan Falcon 702-13 Survey to the most westerly corner of said Survey; 702-14 THENCE southeast along the southwest line of the Juan Falcon 702-15 Survey to the most southerly corner of said Survey; 702-16 THENCE southwest along the northwest line of the H. E. Watson 702-17 Survey to the most westerly corner of said Survey; 702-18 THENCE southeast along the southwest line of the H. E. Watson 702-19 Survey to the point of intersection with the northwest line of the 702-20 James Morgan Survey; 702-21 THENCE northeast along the northwest line of the James Morgan 702-22 Survey to the most northerly corner of said Survey; 702-23 THENCE southeast along the northeast line of the James Morgan 702-24 Survey to the most easterly corner of said Survey; 702-25 THENCE southwest along the southeast line of the James Morgan 702-26 Survey to the point of intersection with the west line of the Henry 703-1 W. Augustin Survey; 703-2 THENCE south along the west line of the Henry W. Augustin 703-3 Survey to the most southerly corner of said Survey; 703-4 THENCE east along the south line of the Henry W. Augustin 703-5 Survey to the point of intersection with the northeast line of the 703-6 J. G. Loving Survey, said point of intersection being also the most 703-7 westerly corner of the A. B. Wildman Survey; 703-8 THENCE southeast along the northeast line of the J. G. Loving 703-9 Survey to the point of intersection with the west line of the A. B. 703-10 Wildman Survey; 703-11 THENCE south along the east line of the J. G. Loving Survey 703-12 to the southeast corner of said Survey; 703-13 THENCE east along the north line of the John V. Williams 703-14 Survey to the northeast corner of said Survey; 703-15 THENCE south along the west lines of the A. B. Wildman 703-16 Survey, the James H. Finley Survey, and the Joseph H. Knapp Survey 703-17 to the southwest corner of said Joseph H. Knapp Survey; 703-18 THENCE east along the south line of the Joseph H. Knapp 703-19 Survey to the northwest corner of the James Stephenson Survey; 703-20 THENCE south along the west line of the James Stephenson 703-21 Survey to the point of intersection with the south line of Polk 703-22 County. 703-23 SAN JACINTO COUNTY 703-24 All of that portion of San Jacinto County located north and 703-25 east of the following described line: 703-26 BEGINNING at the point of intersection of the west line of 704-1 the S. Kirkham Survey, being also the east line of the A. B. 704-2 Rozzell Survey, with the southeast line of San Jacinto County; 704-3 THENCE north along the west line of the S. Kirkham Survey to 704-4 the northwest corner of said Survey; 704-5 THENCE east along the north line of the S. Kirkham Survey to 704-6 the point of intersection with the west line of the Oliver H. 704-7 Williams Survey; 704-8 THENCE north along the east line of the A. B. Rozzell Survey 704-9 to the northeast corner of said Survey; 704-10 THENCE west along the north line of the A. B. Rozzell Survey 704-11 to the southwest corner of the Daniel Dunaho Survey; 704-12 THENCE north along the west line of the Daniel Dunaho Survey 704-13 to the point of intersection with the south line of the H. & T. C. 704-14 RR Co. Survey; 704-15 THENCE west along the south line of the H. & T. C. RR Co. 704-16 Survey to the southwest corner of said Survey; 704-17 THENCE north along the west line of the H. & T. C. RR Co. 704-18 Survey to the northwest corner of said Survey; 704-19 THENCE west along the south line of the Horatio A. Alsbury 704-20 Survey to the southwest corner of said Survey; 704-21 THENCE north along the west line of the Horatio A. Alsbury 704-22 Survey to the northwest corner of said Survey; 704-23 THENCE west along the south line of the John Faulk Survey to 704-24 the southwest corner of said Survey; 704-25 THENCE north along the west line of the John Faulk Survey to 704-26 the point of intersection with the north line of the James Booth 705-1 Survey; 705-2 THENCE west along the north line of the James Booth Survey to 705-3 the southeast corner of the George Taylor Survey; 705-4 THENCE north along the east line of the George Taylor Survey 705-5 to the northeast corner of said Survey; 705-6 THENCE west along the north line of the George Taylor Survey 705-7 to the point of intersection with the southeast line of the Polk 705-8 County School Land Survey; 705-9 THENCE northeast along the southeast line of the Polk County 705-10 School Land Survey to the most easterly corner of said Survey; 705-11 THENCE northwest along the southwest line of the William M. 705-12 White Survey to the most westerly corner of said Survey; 705-13 THENCE northeast along the northwest line of the William M. 705-14 White Survey to the point of intersection with the southwest line 705-15 of the Robert Rankin Survey; 705-16 THENCE northwest along the southwest line of the Robert 705-17 Rankin Survey to the most westerly corner of said Survey; 705-18 THENCE northeast along the northwest line of the Robert 705-19 Rankin Survey to the point of intersection with the southwest line 705-20 of the Drury McGee Survey; 705-21 THENCE northwest along the southwest line of the Drury McGee 705-22 Survey to the most westerly corner of said Survey; 705-23 THENCE northwest across the Mesina Brown Survey to the most 705-24 southerly corner of the Richard Danzey Survey; 705-25 THENCE northwest along the southwest line of the Richard 705-26 Danzey Survey to the point of intersection with the southeast line 706-1 of the Charles Butler Survey; 706-2 THENCE northeast along the southeast line of the Charles 706-3 Butler Survey to the most easterly corner of said Survey; 706-4 THENCE northwest along the northeast line of the Charles 706-5 Butler Survey to the most northerly corner of said Survey; 706-6 THENCE southwest along the northwest line of the Charles 706-7 Butler Survey to the point of intersection with the east line of 706-8 the Polk County School Land Survey, being also the point of 706-9 intersection with the west line of the I. & G. N. RR Company 706-10 Survey; 706-11 THENCE north along the east line of the Polk County School 706-12 Land Survey to the northeast corner of said Survey; 706-13 THENCE west along the north line of the Polk County School 706-14 Land Survey to the point of intersection with the east line of the 706-15 Richard Danzey Survey; 706-16 THENCE north along the east line of the Richard Danzey Survey 706-17 to the northeast corner of said Survey; 706-18 THENCE west along the north line of the Richard Danzey Survey 706-19 to the southeast corner of the T. J. Golightly Survey; 706-20 THENCE north along the east line of the T. J. Golightly 706-21 Survey to the northeast corner of said Survey; 706-22 THENCE west along the north line of the T. J. Golightly 706-23 Survey to the point of intersection with the northeast line of the 706-24 William M. White Survey; 706-25 THENCE northwest along the northeast line of the William M. 706-26 White Survey to the point of intersection with the south line of 707-1 the Ralph McGee Survey; 707-2 THENCE west along the south line of the Ralph McGee Survey to 707-3 the southwest corner of said Survey; 707-4 THENCE north along the west line of the Ralph McGee Survey to 707-5 the northwest corner of said Survey; 707-6 THENCE east along the north line of the Ralph McGee Survey to 707-7 the point of intersection with the west line of the William Morris 707-8 Survey; 707-9 THENCE north along the west line of the William Morris Survey 707-10 to the point of intersection with the south line of the James C. 707-11 Ward Survey; 707-12 THENCE west along the south lines of the James C. Ward Survey 707-13 and the I. & G. N. RR Company Survey to the most southerly corner 707-14 of the I. & G. N. RR Company Survey; 707-15 THENCE north along the west line of the I. & G. N. RR Company 707-16 Survey to an angle point for corner; 707-17 THENCE northwest along the southwest line of the I. & G. N. 707-18 RR Company Survey to an angle point for corner, said angle point 707-19 being also the most northerly corner of the Francisco Mancha 707-20 Survey; 707-21 THENCE north along the west line of the I. & G. N. RR Company 707-22 Survey to the most southerly corner of the Jonathan Stanley Survey; 707-23 THENCE northwest along the southwest lines of the Jonathan 707-24 Stanley Survey and the A. P. Davis Survey to the point of 707-25 intersection with the southeast line of the Robert T. Rucker 707-26 Survey; 708-1 THENCE southwest along the southeast line of the Robert T. 708-2 Rucker Survey to the most southerly corner of said Survey; 708-3 THENCE northwest along the southwest lines of the Robert T. 708-4 Rucker Survey and the Zelpha Sears Survey to the point of 708-5 intersection with the southeast line of the Robert Kilgore Survey; 708-6 THENCE southwest along the southeast line of the Robert 708-7 Kilgore Survey to the most southerly corner of said Survey; 708-8 THENCE northwest along the southwest line of the Robert 708-9 Kilgore Survey to the most westerly corner of said Survey; 708-10 THENCE northeast along the northwest line of the Robert 708-11 Kilgore Survey to the point of intersection with the southwest line 708-12 of the Albert A. Foster Survey; 708-13 THENCE northwest along the southwest line of the Albert A. 708-14 Foster Survey to the most westerly corner of said Survey; 708-15 THENCE northeast along the northwest line of the Albert A. 708-16 Foster Survey to the point of intersection with the southwest line 708-17 of the Roderick Jenkins Survey; 708-18 THENCE northwest along the southwest line of the Roderick 708-19 Jenkins Survey to the point of intersection with the southeast line 708-20 of the Benson Resinhower Survey; 708-21 THENCE southwest along the southeast line of the Benson 708-22 Resinhower Survey to the point of intersection with the west line 708-23 of San Jacinto County. 708-24 TRINITY COUNTY 708-25 All of that portion of Trinity County located southwest of 708-26 the following described line: 709-1 BEGINNING at the point of intersection of the north line of 709-2 the Jose M. Prado Survey with the northwest line of Trinity County; 709-3 THENCE east along the north line of the Jose M. Prado Survey 709-4 to the northeast corner of said Survey; 709-5 THENCE south along the east line of the Jose M. Prado Survey 709-6 to the northwest corner of the J. M. Walker Survey; 709-7 THENCE east along the north line of the J. M. Walker Survey 709-8 to the northeast corner of said Survey; 709-9 THENCE south along the east line of the J. M. Walker Survey 709-10 to the northwest corner of the James M. Tullous Survey; 709-11 THENCE east along the north line of the James M. Tullous 709-12 Survey to the northeast corner of said Survey; 709-13 THENCE south along the east lines of the James M. Tullous 709-14 Survey and the N. E. Morris Survey to the point of intersection 709-15 with the south line of the M. H. Shull Survey; 709-16 THENCE east along the south line of the M. H. Shull Survey to 709-17 the northeast corner of the Christopher Fox Survey; 709-18 THENCE south along the west lines of the R. F. Stokes Survey 709-19 and the Jerry Davis Survey to the point of intersection with the 709-20 north line of the Arthur E. Westall Survey; 709-21 THENCE east along the north line of the Arthur E. Westall 709-22 Survey to the northeast corner of said Survey; 709-23 THENCE south along the east line of the Arthur E. Westall 709-24 Survey to the southeast corner of said Survey; 709-25 THENCE west along the south line of the Arthur E. Westall 709-26 Survey to the point of intersection with the west line of the 710-1 Richard Miller Survey; 710-2 THENCE south along the west lines of the Richard Miller 710-3 Survey and the C. H. Rushing Survey to the southwest corner of said 710-4 C. H. Rushing Survey; 710-5 THENCE southeast along the southwest line of the C. H. 710-6 Rushing Survey to an angle point for a corner; 710-7 THENCE east along the south line of the C. H. Rushing Survey 710-8 to the southeast corner of said Survey; 710-9 THENCE south along the west line of the John Veatch Survey to 710-10 the southwest corner of said Survey; 710-11 THENCE southeast along the southwest line of the John Veatch 710-12 Survey to the point of intersection with the southeast line of the 710-13 James Hanley Survey; 710-14 THENCE northeast along the southeast line of the John Veatch 710-15 Survey to the point of intersection with the southwest line of the 710-16 Maria G. Castro Survey; 710-17 THENCE southeast along the southwest lines of the Maria G. 710-18 Castro Survey and the Ignacio de los Santos Coy Survey to the south 710-19 corner of said Ignacio de los Santos Coy Survey; 710-20 THENCE southwest along the northwest line of the Trinity 710-21 County Survey, Abstract No. 590, to the southwest corner of said 710-22 Survey; 710-23 THENCE east along the north line of the Ebenezer Fraser 710-24 Survey to the northeast corner of said Survey; 710-25 THENCE south along the east line of the Ebenezer Fraser 710-26 Survey to the point of intersection with the south line of the T. & 711-1 S. T. Company Survey; 711-2 THENCE east along the north line of the Felix W. Goff Survey 711-3 to the northeast corner of said Survey; 711-4 THENCE south along the east line of the Felix W. Goff Survey 711-5 to the point of intersection with the north line of the John J. 711-6 West Survey; 711-7 THENCE east along the north line of the John J. West Survey 711-8 to the northeast corner of said Survey; 711-9 THENCE south along the east line of the John J. West Survey 711-10 to the point of intersection with the north line of the J. 711-11 Poitevent Survey, Abstract No. 501; 711-12 THENCE east along the south line of the John D. Long Survey 711-13 to the southeast corner of said Survey; 711-14 THENCE north along the east line of the John D. Long Survey 711-15 to the point of intersection with the south line of the G. W. 711-16 Granbury Survey; 711-17 THENCE east along the south line of the G. W. Granbury Survey 711-18 to the southeast corner of said Survey; 711-19 THENCE south along the east line of the J. Poitevent Survey, 711-20 Abstract No. 501, being also along the west line of the J. 711-21 Poitevent Survey, Abstract No. 500, to angle point for corner; 711-22 THENCE east along the north line of the J. Poitevent Survey, 711-23 Abstract No. 501, being also along the south line of the J. 711-24 Poitevent Survey, Abstract No. 500, to an angle point for corner; 711-25 THENCE south along the east lines of the J. Poitevent Survey, 711-26 Abstract No. 501, and the F. S. Trueblood Survey to the point of 712-1 intersection with the southeast line of Trinity County. 712-2 WALKER COUNTY 712-3 All of that portion of Walker County located north of the 712-4 following described line: 712-5 BEGINNING at the point of intersection of the south line of 712-6 the William S. Parker Survey, Abstract No. 428, with the west line 712-7 of Walker County; 712-8 THENCE east along the south line of the William S. Parker 712-9 Survey, Abstract No. 428, to the southeast corner of said Survey; 712-10 THENCE south along the west line of the Abraham Peck Survey 712-11 to the southwest corner of said Survey; 712-12 THENCE east along the south line of the Abraham Peck Survey 712-13 to the southeast corner of said Survey; 712-14 THENCE north along the east line of the Abraham Peck Survey 712-15 to the point of intersection with the west line of the Manuel 712-16 Herrera Survey; 712-17 THENCE north along the west line of the Manuel Herrera Survey 712-18 to the northwest corner of said Survey; 712-19 THENCE east along the north lines of the Manuel Herrera 712-20 Survey and the Juan Jose Sanchez Survey to the northeast corner of 712-21 said Juan Jose Sanchez Survey; 712-22 THENCE south along the east lines of the Juan Jose Sanchez 712-23 Survey and the John Heyser Survey, Abstract No. 236, to the point 712-24 of intersection with the northwest line of the J. Heyser Survey, 712-25 Abstract No. 238; 712-26 THENCE northeast along the northwest lines of the J. Heyser 713-1 Survey, Abstract No. 238, and the Allen Roberts Survey to the 713-2 northeast corner of said Allen Roberts Survey; 713-3 THENCE south along the east line of the Allen Roberts Survey 713-4 to the point of intersection with the northwest line of the 713-5 Benjamin W. Robinson Survey; 713-6 THENCE northeast along the northwest line of the Benjamin W. 713-7 Robinson Survey to the point of intersection with the northeast 713-8 line of the John Rutledge Survey, being also the southwest corner 713-9 of the Sydney Cole Survey; 713-10 THENCE southeasterly across the Benjamin W. Robinson Survey 713-11 to the northwest corner of the James C. DeWitt Survey; 713-12 THENCE northeast along the northwest line of the James C. 713-13 DeWitt Survey to the northeast corner of said Survey; 713-14 THENCE south along the west line of the Samuel H. Ewing 713-15 Survey to the southwest corner of said Survey; 713-16 THENCE east along the south lines of the Samuel H. Ewing 713-17 Survey, the John Randolph Survey and the William G. Tumlinson 713-18 Survey to the point of intersection with the west line of the Lewis 713-19 Cox Survey; 713-20 THENCE east along the north lien of the Lewis Cox Survey to 713-21 the northeast corner of said Survey; 713-22 THENCE south along the east line of the Lewis Cox Survey to a 713-23 point for corner; 713-24 THENCE east along the north line of the Lewis Cox Survey to 713-25 the point of intersection with the northwest line of the Peter 713-26 Tomlinson Survey; 714-1 THENCE northeast along the northwest line of the Peter 714-2 Tomlinson Survey to the point of intersection with the west line of 714-3 the John W. Adams Survey; 714-4 THENCE north along the west line of the John W. Adams Survey 714-5 to the northwest corner of said Survey; 714-6 THENCE east along the north lines of the John W. Adams 714-7 Survey, the M. Johnson Survey, the Elihu Davids Survey and the 714-8 Thomas Gibbs Survey to the southeast corner of the Pleasant Gray 714-9 Survey; 714-10 THENCE north along the west line of the Thomas Gibbs Survey 714-11 to the northwest corner of said Survey; 714-12 THENCE east along the north line of the Thomas Gibbs Survey 714-13 to the northeast corner of said Survey; 714-14 THENCE north along the west line of the Harvey Gray Survey to 714-15 the northwest corner of said Survey; 714-16 THENCE east along the north line of the Harvey Gray Survey to 714-17 the northeast corner of said Survey; 714-18 THENCE south along the east line of the Harvey Gray Survey to 714-19 the northwest corner of the Albert G. Gholson Survey; 714-20 THENCE east along the north line of the Albert G. Gholson 714-21 Survey to the point of intersection with the west line of the 714-22 Benson Resinhoover Survey; 714-23 THENCE south along the west line of the Benson Resinhoover 714-24 Survey to the southwest corner of said Survey; 714-25 THENCE east along the south line of the Benson Resinhoover 714-26 Survey to the southeast corner of said Survey; 715-1 THENCE north along the east line of the Benson Resinhoover 715-2 Survey to the southwest corner of the Samuel H. Ewing Survey; 715-3 THENCE east along the south line of the Samuel H. Ewing 715-4 Survey to the southeast corner of said Survey; 715-5 THENCE north along the east line of the Samuel H. Ewing 715-6 Survey to the southwest corner of the Sidney H. Millard Survey; 715-7 THENCE east along the south line of the Sidney H. Millard 715-8 Survey to the southeast corner of said Survey; 715-9 THENCE south along the west line of the John Caruthers Survey 715-10 to the southwest corner of said Survey; 715-11 THENCE east along the south line of the John Caruthers Survey 715-12 to the southeast corner of said Survey; 715-13 THENCE north along the east line of the John Caruthers Survey 715-14 to the northeast corner of said Survey; 715-15 THENCE east along the south line of the Lewis Duel Survey to 715-16 the southeast corner of said Survey; 715-17 THENCE north along the east line of the Lewis Duel Survey to 715-18 the southwest corner of the John Stubblefield Survey; 715-19 THENCE east along the south line of the John Stubblefield 715-20 Survey to the southeast corner of said Survey; 715-21 THENCE north along the west line of the Pierre Blanchet 715-22 Survey to the northwest corner of said Survey; 715-23 THENCE southeast along the northeast lines of the Pierre 715-24 Blanchet Survey and the Edmund Logre Survey to the point of 715-25 intersection with the east line of Walker County. 716-1 LIBERTY COUNTY 716-2 All of that portion of Liberty County described as follows: 716-3 BEGINNING at the point of intersection of the west line of 716-4 the Spencer Kirkham Survey with the northwest line of Liberty 716-5 County; 716-6 THENCE south along the west line of the Spencer Kirkham 716-7 Survey to the point of intersection with the north line of the 716-8 Daniel Donaho Survey; 716-9 THENCE east along the north lines of the Daniel Donaho Survey 716-10 and the Moses Donaho Survey to the northeast corner of said Moses 716-11 Donaho Survey; 716-12 THENCE south along the west lines of the F. J. C. Smiley 716-13 Survey and the Elias K. Davis Survey to the southwest corner of 716-14 said Elias K. Davis Survey; 716-15 THENCE east along the south line of the Elias K. Davis Survey 716-16 to the northwest corner of the Thomas Newman Survey; 716-17 THENCE south along the east line of the Barton Tarkington 716-18 Survey to the southeast corner of said Survey; 716-19 THENCE east along the north line of the F. H. Votaw Survey to 716-20 the northeast corner of said Survey; 716-21 THENCE south along the east line of the F. H. Votaw Survey to 716-22 the point of intersection with the north line of the Jno. Havard 716-23 Survey; 716-24 THENCE west along the north line of the Jno. Havard Survey to 716-25 the point of intersection with the east line of the Jordan West 716-26 Survey; 717-1 THENCE south along the east lines of the Jordan West Survey 717-2 and the Maurice Smith Survey to the southeast corner of said 717-3 Maurice Smith Survey; 717-4 THENCE east along the north line of the John R. Faulk Survey 717-5 to the northeast corner of said Survey; 717-6 THENCE south along the east lines of the John R. Faulk 717-7 Survey, the Hugh Means Survey, the Thos. B. Garrett Survey, and the 717-8 A. H. Booth Survey to the point of intersection with the north line 717-9 of the G. T. Tabb Survey; 717-10 THENCE east along the north line of the G. T. Tabb Survey to 717-11 the northeast corner of said Survey; 717-12 THENCE south along the west lines of the I. & G. N. R. R. Co. 717-13 Survey and the Richard Green Survey to the southwest corner of said 717-14 Richard Green Survey; 717-15 THENCE east along the south line of the Richard Green Survey 717-16 to the northwest corner of the Reason Green Survey; 717-17 THENCE south along the east line of the Wm. F. Fisher Survey 717-18 to the northwest corner of the I. & G. N. R. R. Co. Survey, Patent 717-19 No. S-713; 717-20 THENCE east along the north line of the I. & G. N. R. R. Co. 717-21 Survey, Patent No. S-713, to the northeast corner of said Survey; 717-22 THENCE south along the east lines of the I. & G. N. R. R. Co. 717-23 Surveys, Patent Nos. S-713 and S-684, to the southwest corner of 717-24 the Beasley Prewitt Survey; 717-25 THENCE east along the south line of the Beasley Prewitt 717-26 Survey to the Northwest corner of the Town of Liberty North League; 718-1 THENCE south along the west line of the Town of Liberty North 718-2 League to the southwest corner of said League; 718-3 THENCE west along the north line of the Town of Liberty South 718-4 League to the northwest corner of said League; 718-5 THENCE south along the west line of the Town of Liberty South 718-6 League to the point of intersection of said west line with the 718-7 northwest right-of-way line of the T. & N. O. R. R.; 718-8 THENCE southwesterly along said northwest right-of-way line 718-9 to its intersection with the Cedar Bayou, which is also the east 718-10 line of Harris County; 718-11 THENCE in a southerly direction along the west line of 718-12 Liberty County, which is also the east line of Harris County, to 718-13 its intersection with the north boundary line of Chambers County; 718-14 THENCE east along the north boundary line of Chambers County, 718-15 which is also the south boundary line of Liberty County, to its 718-16 intersection with the west line of Jefferson County, which is also 718-17 the east boundary line of Liberty County; 718-18 THENCE north along said east line of Liberty County to its 718-19 intersection with the south right-of-way line of the T. & N. O. R. 718-20 R.; 718-21 THENCE in a westerly direction along said south right-of-way 718-22 line to its intersection with the east line of the W. G. R. R. Co. 718-23 Survey, Patent No. S-40; 718-24 THENCE north along the east line of the said W. G. R. R. Co. 718-25 Survey, Patent No. S-40, continuing north along the west line of 718-26 the H. & T. C. R. R. Co. Survey, Patent No. S-496 to the northwest 719-1 corner of said survey; 719-2 THENCE east along the north line of said H. & T. C. R. R. Co. 719-3 Survey, turning northeasterly to follow the northwest line of said 719-4 H. & T. C. R. R. Co. Survey to the point of intersection of said 719-5 northwestern line with the southwest line of the Reason W. Boyce 719-6 Survey; 719-7 THENCE northwesterly along the southwest line of said Boyce 719-8 Survey to the point of intersection with the Robert N. Hanney 719-9 Survey; 719-10 THENCE along the northwest line of said Boyce Survey to the 719-11 east corner of said Hanney Survey, being the point where the 719-12 northeast line of said Hanney Survey intersects the northwest line 719-13 of said Boyce Survey; 719-14 THENCE northwesterly along the northeast line of said Hanney 719-15 Survey, continuing along the northeast line of the John Barron 719-16 Survey to the point of intersection of the northeast line of said 719-17 Barron Survey with the south line of the Jessie Devore Survey; 719-18 THENCE west along the south line of said Devore Survey to the 719-19 southwestern corner of said Devore Survey; 719-20 THENCE in a northerly direction along the west line of said 719-21 Devore Survey to the northeast corner of the Philip P. Dever 719-22 Survey; 719-23 THENCE west along the north line of the Philip P. Dever 719-24 Survey to the southwest corner of the Day Canter Survey; 719-25 THENCE north along the west line of the Day Canter Survey to 719-26 the point of intersection with the south line of the W. S. Swilley 720-1 Survey, Patent No. 36,610; 720-2 THENCE east along the south line of the W. S. Swilley Survey 720-3 to the southeast corner of said survey; 720-4 THENCE north along the east lines of the W. S. Swilley Survey 720-5 and the H. & T. C. R. R. Co. Survey to the point of intersection 720-6 with the south line of the William Smith Survey; 720-7 THENCE east along the south line of the William Smith Survey 720-8 to the southeast corner of said Survey; 720-9 THENCE north along the east line of the William Smith Survey 720-10 to the northeast corner of said Survey; 720-11 THENCE west along the north line of the William Smith Survey 720-12 to the southeast corner of the Francisco Millom Survey; 720-13 THENCE north along the east line of the Francisco Millom 720-14 Survey to the northeast corner of said Survey; 720-15 THENCE west along the north line of the Francisco Millom 720-16 Survey to the point of intersection with the east line of the 720-17 Joseph Young Survey; 720-18 THENCE north along the east line of the Joseph Young Survey 720-19 to the northeast corner of said Survey; 720-20 THENCE west along the north line of the Joseph Young Survey 720-21 to the southwest corner of the Thomas Murphy Survey; 720-22 THENCE north along the west line of the Thomas Murphy Survey 720-23 to the northeast corner of the D. J. Harrison Survey; 720-24 THENCE west along the north lines of the D. J. Harrison 720-25 Survey and the Daniel Cleveland Survey to the southeast corner of 720-26 the J. Young Survey; 721-1 THENCE north along the east line of the J. Young Survey to 721-2 the northeast corner of said Survey; 721-3 THENCE east along the north line of the Thomas Murphy Survey 721-4 to the northeast corner of said Survey; 721-5 THENCE north along the west lines of the L. D. Nixon Survey, 721-6 the Lefori Gedruf Survey, and the Mathew S. Miller Survey to the 721-7 northwest corner of said Mathew S. Miller Survey; 721-8 THENCE west along the south line of the I. & G. N. R. R. Co. 721-9 Survey to the southwest corner of said Survey; 721-10 THENCE north along the east line of the Wm. Phelps Survey to 721-11 the northeast corner of said Survey; 721-12 THENCE west along the north line of the Wm. Phelps Survey to 721-13 the point of intersection with the east line of the Augustin M. de 721-14 Lejarza Survey; 721-15 THENCE north along the east line of the Augustin M. de 721-16 Lejarza Survey to the northeast corner of said Survey; 721-17 THENCE east along the south line of the Philip Miller Survey 721-18 to the southeast corner of said Survey; 721-19 THENCE north along the east line of the Philip Miller Survey 721-20 to the point of intersection with the south line of the Manuel de 721-21 los Santos Coy Survey; 721-22 THENCE east along the north line of the John E. Mayfield 721-23 Survey to an angle point for corner, said angle point being also 721-24 the southeast corner of the Manuel de los Santos Coy Survey; 721-25 THENCE north along the east line of the Manuel de los Santos 721-26 Coy Survey to the northeast corner of said Survey; 722-1 THENCE west along the north line of the Manuel de los Santos 722-2 Coy Survey to the point of intersection with the east line of the 722-3 John Hartgraves Survey; 722-4 THENCE north along the east line of the John Hartgraves 722-5 Survey to the northeast corner of said Survey; 722-6 THENCE east along the south line of the Jose Dolores Martinez 722-7 Survey to the southeast corner of said Survey; 722-8 THENCE north along the east line of the Jose Dolores Martinez 722-9 Survey to the northeast corner of said Survey; 722-10 THENCE west along the north line of the Jose Dolores Martinez 722-11 Survey to the southeast corner of the Isaiah Fields Survey; 722-12 THENCE north along the east line of the Isaiah Fields Survey 722-13 to the northeast corner of said Survey; 722-14 THENCE west along the north line of the Isaiah Fields Survey 722-15 to the southeast corner of the Augustin M. de Lejarza Survey; 722-16 THENCE north along the east line of the Augustin M. de 722-17 Lejarza Survey to the southwest corner of the Joel W. Robison 722-18 Survey; 722-19 THENCE east along the south line of the Joel W. Robison 722-20 Survey to the southeast corner of said Survey; 722-21 THENCE north along the east line of the Joel W. Robison 722-22 Survey to the point of intersection with the northeast line of 722-23 Liberty County; 722-24 THENCE northwest along the northeast line of Liberty County 722-25 to the point of intersection with the north line of Liberty County; 722-26 THENCE west along the north line of Liberty County to the 723-1 point of intersection with the northwest line of Liberty County; 723-2 THENCE southwest along the northwest line of Liberty County 723-3 to the point of beginning. 723-4 (b) The area of the authority shall also include the Maria 723-5 G. Castro League in Trinity County, which includes the area of the 723-6 city of Groveton, and it is found and determined that all the land 723-7 in the league will benefit from the exercise of the power conferred 723-8 in this chapter. 723-9 (c) It is found and determined that all the land included in 723-10 the authority will benefit from the exercise of the powers 723-11 conferred by this chapter. No provision of this chapter is 723-12 intended to or shall be applicable outside the area specifically 723-13 included in this section, notwithstanding anything in this chapter 723-14 to the contrary. 723-15 Sec. 275.004. BOARD OF DIRECTORS. (a) All powers of the 723-16 authority shall be exercised by a board of directors. 723-17 (b) The board shall consist of 24 directors to be appointed 723-18 by the governor with the advice and consent of the senate. When 723-19 the legislature is in session, an appointment shall not become 723-20 effective until it is approved by the senate. 723-21 (c) For the purposes of the appointment of directors the 723-22 authority is divided into 18 areas, numbered 1 to 18, both 723-23 inclusive, respectively containing the county as follows: 723-24 Area 1. Tarrant 723-25 Area 2. Dallas 723-26 Area 3. Kaufman 724-1 Area 4. Henderson 724-2 Area 5. Ellis 724-3 Area 6. Navarro 724-4 Area 7. Anderson 724-5 Area 8. Freestone 724-6 Area 9. Leon 724-7 Area 10. Houston 724-8 Area 11. Trinity 724-9 Area 12. Madison 724-10 Area 13. Walker 724-11 Area 14. San Jacinto 724-12 Area 15. Polk 724-13 Area 16. Liberty 724-14 Area 17. Chambers 724-15 Area 18. All the territory contained within the above named 724-16 17 areas and 17 counties, which shall be known as "the 724-17 area-at-large." 724-18 (d) The board shall include three directors from Tarrant 724-19 County, four directors from Dallas County, and two directors from 724-20 the area-at-large. One director shall be appointed from each of 724-21 the other areas named in Subsection (c). 724-22 (e) Each director serves for a term of six years and until a 724-23 successor is appointed and has qualified. The terms of the 724-24 directors expire on the 15th day of March of the year in which 724-25 their respective terms terminate under the provisions of this 724-26 chapter. 725-1 (f) The board may appoint an executive committee to perform 725-2 the functions of the board between meetings, except as its powers 725-3 may be restricted in the action setting up the committee. 725-4 (g) A director must reside and own taxable property within 725-5 the area from which the director is appointed. An officer or 725-6 employee of a county or city shall not be eligible to serve as a 725-7 director. 725-8 (h) Each director shall subscribe the constitutional oath 725-9 and shall give bond in the amount of $5,000, the cost of which 725-10 shall be paid by the authority. 725-11 (i) If a director moves out of the area from which the 725-12 director is appointed, the governor shall promptly appoint a 725-13 successor to the director's position. 725-14 Sec. 275.005. DIRECTOR FEES. A director is entitled to 725-15 receive fees of office and reimbursement expenses as provided by 725-16 Section 49.060. 725-17 Sec. 275.006. OFFICERS. (a) The board shall elect from 725-18 among its members a president and a vice president of the authority 725-19 and other officers that the board considers necessary. 725-20 (b) The president is the presiding officer of the board and 725-21 the chief officer of the authority and has the same right to vote 725-22 as any other director. 725-23 (c) The vice president shall perform all duties and exercise 725-24 all powers conferred by this chapter on the president when the 725-25 president is absent or fails, is unable, or declines to act. 725-26 (d) The board shall appoint a secretary and a treasurer who 726-1 shall not be members of the board. Within the discretion of the 726-2 board the offices of secretary and treasurer may be held by one 726-3 person, whose title shall be secretary-treasurer. The treasurer 726-4 shall give bond in an amount prescribed by the board. 726-5 (e) The board may appoint a general manager and all 726-6 necessary engineers, attorneys, and other employees. 726-7 Sec. 275.007. GENERAL POWERS AND DUTIES. (a) The authority 726-8 shall have all the powers of the state under Section 59, Article 726-9 XVI, Texas Constitution, to effectuate flood control and the 726-10 conservation and use, for all beneficial purposes, of storm waters 726-11 and floodwaters and unappropriated flow waters in the Trinity River 726-12 watershed, subject only to: 726-13 (1) declarations of policy by the legislature as to 726-14 use of water; 726-15 (2) continuing supervision and control by the 726-16 commission; 726-17 (3) the provisions of Section 11.024, prescribing the 726-18 priorities of uses for water; and 726-19 (4) the water rights legally acquired at any time by 726-20 municipalities and other users. 726-21 (b) The authority shall have all the powers of the state 726-22 under Section 59, Article XVI, Texas Constitution, to encourage, 726-23 promote, and provide for the navigation of inland and coastal 726-24 waters within the Trinity River watershed, including the power to 726-25 cooperate with the Chambers-Liberty Counties Navigation District in 726-26 the development and construction of navigation canals and 727-1 facilities or harbor and terminal facilities within the boundaries 727-2 of the Chambers-Liberty Counties Navigation District. 727-3 (c) The authority shall exercise the powers described by 727-4 this section, to the greatest practicable extent, for the 727-5 conservation and beneficial use of storm waters, floodwaters, and 727-6 unappropriated flow waters of the Trinity River Watershed in the 727-7 manner and for the particular purposes specified in this section 727-8 and in this chapter, including the power: 727-9 (1) to store and conserve such waters in order to 727-10 prevent the escape of any water without the maximum beneficial use 727-11 either within or outside the authority; 727-12 (2) to provide for the conservation of water for uses 727-13 within and outside the watershed, including providing a water 727-14 supply for cities and towns, and the right to sell water and 727-15 standby service to any person, firm, or corporation, including 727-16 cities and towns and other public agencies, within and outside the 727-17 watershed; provided, however, that the purchasers of conservation 727-18 storage water for domestic, industrial, or irrigation uses shall 727-19 not be required to pay any part of the cost of benefits accruing 727-20 for flood control purposes; 727-21 (3) to provide for the conservation of soils and other 727-22 surface resources against destructive erosion and prevent the 727-23 increased flood dangers caused by destructive erosion; 727-24 (4) to provide for the prevention of sedimentation and 727-25 siltation of lands, channels, reservoirs, and coastal waters, 727-26 including aiding and supplementing the work of upstream soil and 728-1 water conservation and flood prevention projects authorized by 728-2 state or federal agencies in conjunction with soil conservation 728-3 districts, in furtherance of the master plan as described in 728-4 Section 275.028; 728-5 (5) to provide water for the irrigation of lands 728-6 within and outside the watershed; 728-7 (6) to provide water for the development of commercial 728-8 and industrial enterprises, within and outside the watershed; 728-9 (7) to execute contracts with municipalities and 728-10 others involving the construction of reservoirs, dams, water supply 728-11 lines, water purification and pumping facilities, and the 728-12 furnishing of water supply service substantially in the manner 728-13 prescribed by Section 402.020, Local Government Code, for districts 728-14 organized and created pursuant to Section 59, Article XVI, Texas 728-15 Constitution, extended to permit such contracts with individuals, 728-16 partnerships, and all classes of corporations and to permit the 728-17 inclusion in the authorized contracts of provisions for operation 728-18 and ownership of such properties; 728-19 (8) to bring water into the boundaries of the 728-20 authority for beneficial uses when the authority considers it 728-21 necessary for the interest of conservation, and subject to the 728-22 approval of the commission; 728-23 (9) to provide for the encouragement and development 728-24 of recreational facilities and the preservation of fish and 728-25 wildlife; 728-26 (10) to acquire, purchase, take over, construct, 729-1 maintain, operate, develop, and regulate canals, locks, wharves, 729-2 docks, warehouses, grain elevators, bunkering facilities, belt 729-3 railroads, floating plants, lighterage, lands, towing facilities, 729-4 and all other facilities or aids incident to or necessary to the 729-5 operation or development of ports or waterways within the Trinity 729-6 River watershed and extending to the Gulf of Mexico; 729-7 (11) to adopt through action of the board any powers 729-8 permitted under this code; 729-9 (12) to construct, own, and operate sewage-gathering, 729-10 transmission, and disposal services, charge for the services, and 729-11 enter into contracts for the services with municipalities and 729-12 others as necessary to aid in the conservation, control, 729-13 preservation, and distribution of water for beneficial use; and 729-14 (13) to adopt all reasonable rules and regulations 729-15 designed to facilitate the exercise of the rights and the 729-16 performance of the duties of the authority and adopt and amend the 729-17 bylaws of the authority. 729-18 (d) For the purposes of operating or developing ports or 729-19 waterways under Subsection (c)(10), the authority may issue bonds 729-20 as provided by this chapter. The authority may borrow funds for 729-21 current expenses and evidence the same by negotiable notes or 729-22 warrants payable not later than the close of any calendar year for 729-23 which the loans are made. 729-24 (e) Any actions under Subsection (c)(10) within the 729-25 boundaries of the Chambers-Liberty Counties Navigation District may 729-26 be conducted in cooperation with that district. 730-1 Sec. 275.008. POWERS RELATING TO RECREATIONAL FACILITIES. 730-2 (a) The board shall acquire sufficient additional land adjoining 730-3 any lakes constructed on the Trinity River for the purpose of 730-4 developing recreational facilities under Section 275.007(c)(9) and 730-5 for acquiring roads for ingress and egress of the public to the 730-6 lakes. 730-7 (b) The board shall use its discretion in determining the 730-8 amount of the additional land required for suitable recreational 730-9 parks but shall secure approximately 20 percent of the adjoining 730-10 lakefront, such 20 percent being intended merely as a guide and not 730-11 as a maximum or minimum limitation. 730-12 (c) The board may charge and collect entrance or gate fees 730-13 to all the authority's developed park sites and recreational areas 730-14 and may charge and collect fees for the use of facilities and for 730-15 services rendered at or on the developed park sites and 730-16 recreational areas. 730-17 (d) The authority shall arrange for the public to have 730-18 adequate free access to each lake owned by the authority. 730-19 (e) The authority may negotiate contracts with any county, 730-20 municipality, municipal corporation, person, firm, corporation, 730-21 nonprofit organization, or state or federal agency for the 730-22 acquisition, establishment, operation, or maintenance of a park 730-23 site or recreational area. 730-24 Sec. 275.009. POWERS RELATING TO DEVERS CANAL SYSTEM. 730-25 (a) In addition to all other powers expressly or impliedly granted 730-26 by other sections of this chapter, the authority may acquire, 731-1 operate, maintain, and improve the canal system and properties 731-2 generally known as "Devers Canal System". 731-3 (b) The authority may enlarge and extend the Devers Canal 731-4 System within the scope of the permits granted by the commission to 731-5 Devers Canal Company, or to its predecessor, and to the authority 731-6 in Chambers and Liberty counties and that portion of Jefferson 731-7 County, described as follows: 731-8 All that portion of Jefferson County located South and West 731-9 of the following described line: 731-10 BEGINNING at the point where the Chambers and Jefferson 731-11 County line intersects the North line of Section 180 (J. H. 731-12 Dunshire Survey, A-677). 731-13 THENCE East along the North line of said Section 180 to its 731-14 Northeast corner. 731-15 THENCE South along the East line of said Section 180 to its 731-16 Southeast corner, same being the Northwest corner of Section 186 731-17 (D. L. Broussard Survey, A-470). 731-18 THENCE East along the North line of said Section 186 to its 731-19 Northeast corner. 731-20 THENCE South along the East line of said Section 186 to its 731-21 Southeast corner, same being the Northwest corner of Section 190 731-22 (H. W. Smith Survey, A-537). 731-23 THENCE East approximately 4,000 feet along the North line of 731-24 said Section 190 to the Northeast corner of the Hebert Trust 480 731-25 acre tract located on the West right of way of a 150 foot wide 731-26 drainage canal. 732-1 THENCE South along the East line of said Hebert Trust 480 732-2 acre tract located in said Section 190 and the East line of the 732-3 Hebert Trust 480 acre tract located in Section 250 (H. W. Smith 732-4 Survey, A-538) and being the West right of way line of said 150 732-5 foot wide drainage canal to the South line of said Section 250, 732-6 same being in the North line of Section 255, A-354. 732-7 THENCE East along the North line of Sections 255, A-354; 256 732-8 (W. H. Smith, A-541); 257, A-335; 258 (W. S. Benson, A-672); 259, 732-9 A-356; 260 (W. S. Benson, A-671); and Section 261, A-357, to the 732-10 Northeast corner of said Section 261. This line is also the South 732-11 right of way line of the aforementioned 150 foot wide drainage 732-12 canal. 732-13 THENCE South along the East line of Sections 261, A-357 and 732-14 264 (T. & N. O. R. R.) and the West right of way line of said 150 732-15 foot wide drainage canal to its intersection with the Northwesterly 732-16 right of way line of the Intracoastal Canal. 732-17 THENCE in a Southwesterly direction along the North right of 732-18 way line of said Intercoastal Canal to a point where the North 732-19 right of way line of said Intercoastal Canal intersects the West 732-20 line of a 1205.27 acre tract of land owned by the McFadden Trust 732-21 Company. 732-22 THENCE due South approximately 3-3/5 miles to the Gulf of 732-23 Mexico. 732-24 (c) For any of the purposes described by this section, the 732-25 authority may issue bonds as provided by this chapter for cash or 732-26 in exchange for the property or capital stock of the Devers Canal 733-1 Company. 733-2 (d) For the purposes of this section, the authority shall 733-3 have the power of eminent domain in the portion of Jefferson County 733-4 described in Subsection (b) to be exercised as provided by this 733-5 chapter. 733-6 (e) The authority may appropriate and divert the waters of 733-7 the Trinity River under the permits and contracts previously owned 733-8 by and acquired from the Devers Canal Company and may distribute, 733-9 sell, and use such waters for any lawful purpose approved by the 733-10 commission within Chambers County, Liberty County, and that portion 733-11 of Jefferson County described in Subsection (b). 733-12 (f) The authority may not assess, levy, or collect a tax of 733-13 any nature for the purposes of this section. The authority may not 733-14 sell water for use in Jefferson County, except in that portion 733-15 described in Subsection (b) or for irrigation use in Chambers 733-16 County within areas authorized to be served by the Chambers-Liberty 733-17 Counties Navigation District under certified filings and permits 733-18 held by the district and issued by the commission or its 733-19 predecessors, without the approval of the district. 733-20 Sec. 275.010. FLOOD CONTROL. (a) In addition to all other 733-21 powers explicitly or impliedly granted by this chapter, the 733-22 authority may: 733-23 (1) cooperate with the commission and the United 733-24 States Army Corps of Engineers to carry out the purposes of this 733-25 chapter and Subchapter Q, Chapter 51; 733-26 (2) develop and implement procedures to exercise 734-1 emergency prerelease programs on Lake Livingston when flooding is 734-2 imminent; and 734-3 (3) establish programs for reservoirs in the Trinity 734-4 River basin that do not have flood control structures, with the 734-5 approval of the commission and after notice and public hearing. 734-6 (b) The authority and other reservoir owners shall be immune 734-7 from any liability for damages resulting from the implementation of 734-8 a prerelease program if the decision to exercise prerelease 734-9 procedures or not to exercise prerelease procedures was reasonable, 734-10 considering water levels, meteorologic conditions and the 734-11 unpredictable nature of those conditions, and historical data. 734-12 (c) The commission shall review and approve the prerelease 734-13 procedures to determine the reasonableness of the procedures. 734-14 Sec. 275.011. REGULATIONS. (a) The board may adopt and 734-15 promulgate all reasonable regulations to regulate residence, 734-16 hunting, fishing, boating, camping, and all recreational and 734-17 business privileges on all lands and easements owned by the 734-18 authority and to protect the property of the authority. 734-19 (b) The regulations shall not include any provisions for the 734-20 collection of fees or the requirement of permits or licenses for 734-21 boat inspections, noncommercial fishing, the use of boats operated 734-22 for noncommercial purposes on lakes owned by the authority, and 734-23 hunting, except for the use of duck blinds constructed, operated, 734-24 and maintained by the authority. 734-25 Sec. 275.012. CONTRACTS FOR CONSTRUCTION AND OPERATION OF 734-26 FACILITIES. (a) The board may enter into contracts with 735-1 responsible persons for the construction and operation of a 735-2 facility on the authority's property, setting reasonable 735-3 compensation for service by the facility, and requiring adequate 735-4 bond from the contracting person, association, or corporation, 735-5 payable to the authority and of such amount and condition as the 735-6 board in its discretion considers appropriate. 735-7 (b) A contract under this section may provide for forfeiture 735-8 of the particular franchise in case of a failure of the licensee to 735-9 render adequate public service. 735-10 Sec. 275.013. PENALTIES FOR VIOLATION OF RULES OR 735-11 REGULATIONS. (a) For the breach of any authority rule or 735-12 regulation, the authority may prescribe reasonable penalties that 735-13 shall not exceed fines of more than $200 or imprisonment for more 735-14 than 30 days, or both fine and imprisonment. 735-15 (b) The penalties authorized by this section shall be in 735-16 addition to any other penalties provided by the laws of this state 735-17 and may be enforced by complaints filed in the appropriate court of 735-18 jurisdiction in the county in which the violation occurred. 735-19 Sec. 275.014. NOTICE OF RULES AND REGULATIONS. (a) Before 735-20 a rule or regulation providing for a penalty may take effect, a 735-21 substantive statement of the rule or regulation and the penalty 735-22 must be published once a week for two consecutive weeks in the 735-23 authority. 735-24 (b) The statement must be as condensed as possible so that 735-25 the act forbidden by the rule or regulation can be easily 735-26 understood. 736-1 (c) Any number of rules or regulations may be included in 736-2 one notice. 736-3 (d) The notice must advise that violation of a rule or 736-4 regulation will subject the violator to a penalty and that the full 736-5 text of the rule or regulation sought to be enforced is on file in 736-6 the principal office of the authority, where it may be read by any 736-7 interested person. 736-8 (e) Five days after the second publication of the notice, 736-9 the published rule or regulation shall be in effect and ignorance 736-10 of the rule or regulation shall not constitute a defense to a 736-11 prosecution for the enforcement of the penalty. 736-12 Sec. 275.015. EFFECT OF RULES AND REGULATIONS. After the 736-13 required publication, rules and regulations adopted by the 736-14 authority shall be recognized by the courts as if they were penal 736-15 ordinances of a city. 736-16 Sec. 275.016. POLICE POWERS. (a) The authority may employ 736-17 and constitute its own law enforcement officers. 736-18 (b) A law enforcement officer of the authority or of any 736-19 other governmental entity may make arrests when necessary to 736-20 prevent or abate the commission of an offense against the 736-21 regulations of the authority, and against the laws of this state, 736-22 when the offense or threatened offense occurs on any land, water, 736-23 or easement owned or controlled by the authority. 736-24 Sec. 275.017. ADDITIONAL POWERS AND DUTIES. (a) The 736-25 authority is a district and a river authority as defined in Chapter 736-26 30. All the provisions of Chapter 30 are applicable to the 737-1 authority, except to the extent of any conflict with this chapter, 737-2 in which case this chapter prevails. 737-3 (b) The authority and all persons may enter into contracts 737-4 with each other in any manner and on terms that the parties may 737-5 agree with respect to any power, function, facility, or service of 737-6 the authority. All public agencies are authorized to use and 737-7 pledge any available revenues for and in the payment of amounts due 737-8 under the contracts as an additional or the sole source of payment 737-9 of the contracts and may covenant with respect to available 737-10 revenues to assure the availability of the revenues when required. 737-11 The term "revenues" as used in this subsection does not mean or 737-12 include revenues from ad valorem taxes levied and collected by a 737-13 public agency or the proceeds from the sale or refunding of bonds 737-14 of a public agency that are to be wholly or partially paid from ad 737-15 valorem taxes levied and collected by the public agency unless the 737-16 use or pledge of the tax revenues or bond proceeds is approved by 737-17 the qualified voters of the public agency at an election called for 737-18 the purpose of levying taxes or issuing or refunding bonds or both 737-19 for the purpose of using or pledging their revenues or proceeds 737-20 under contracts entered into under this section. 737-21 (c) A public agency may set, charge, and collect fees, 737-22 rates, charges, rentals, and other amounts for any service or 737-23 facility provided by a utility operated by the agency or provided 737-24 pursuant to or in connection with a contract with the authority 737-25 from its inhabitants or from any users or beneficiaries of the 737-26 utility, service, or facility including: 738-1 (1) water charges; 738-2 (2) sewage charges; 738-3 (3) solid waste disposal system fees and charges, 738-4 including garbage collection or handling fees; and 738-5 (4) other fees or charges. 738-6 (d) A public agency may use and pledge the fees, rates, 738-7 charges, rentals, and other amounts authorized by Subsection (c) to 738-8 make payments to the authority required under a contract with the 738-9 authority and may covenant to do so in amounts sufficient to make 738-10 all or any part of the payments to the authority when due. If the 738-11 parties agree in the contract, the payments shall constitute an 738-12 expense of operation of any facility or utility operated by the 738-13 public agency. 738-14 (e) The authority, acting through the board, may undertake 738-15 and carry out any activities and may acquire, purchase, construct, 738-16 own, operate, maintain, repair, improve, or extend and may lease or 738-17 sell on terms and conditions, including rentals or sale prices, on 738-18 which the parties may agree all works, improvements, facilities, 738-19 plants, buildings, structures, equipment, and appliances and all 738-20 real and personal property, or any interest in related real or 738-21 personal property, that are incident to or necessary in carrying 738-22 out or performing any power or function of the authority under this 738-23 section. 738-24 (f) The authority may issue bonds with respect to the 738-25 acquisition, purchase, construction, maintenance, repair, 738-26 improvement, and extension of works, improvements, facilities, 739-1 plants, buildings, structures, appliances, and property for the 739-2 purpose of exercising any of its powers and functions under this 739-3 section in the manner provided in Section 275.022. 739-4 (g) The authority may issue revenue bonds to pay for the 739-5 costs of feasibility studies for proposed projects of the 739-6 authority, including engineering, planning and design, and 739-7 environmental studies. The authority may include in any revenue 739-8 bond issue the funds to operate and maintain, for a period not to 739-9 exceed two years after completion, the facilities acquired or 739-10 constructed through the revenue bond issue. 739-11 (h) If bonds issued by the authority recite that they are 739-12 secured by a pledge of payments under a contract, a copy of the 739-13 contract and the proceedings relating to the contract shall be 739-14 submitted to the attorney general along with the bonds, which must 739-15 be submitted under Section 275.022(l). If the attorney general 739-16 finds that the bonds have been authorized and the contract has been 739-17 made and entered into in accordance with law, the attorney general 739-18 shall approve the bonds and the contract, which are then 739-19 incontestable in any court or other forum for any reason and are 739-20 valid and binding in accordance with their terms and provisions for 739-21 all purposes. 739-22 (i) The provisions of Chapter 1204, Government Code, and 739-23 Chapter 618, Government Code, as added by Chapter 227, Acts of the 739-24 76th Legislature, Regular Session, 1999, are applicable to bonds 739-25 issued by the authority. 739-26 (j) This section is wholly sufficient authority for the 740-1 issuance of bonds, the execution of contracts, and the performance 740-2 of the other acts and procedures authorized by this section by the 740-3 authority and all persons, including public agencies, without 740-4 reference to any other provisions of law or any restriction or 740-5 limitation contained in any other law, except as provided by this 740-6 section. To the extent of any conflict or inconsistency between a 740-7 provision of this subsection and any other provision of law, 740-8 including a home-rule city charter, this subsection prevails and 740-9 controls. The authority and all persons, including public 740-10 agencies, may use any provision of law not in conflict with this 740-11 section to the extent convenient or necessary to carry out any 740-12 power or authority, express or implied, granted by this section. 740-13 (k) This section does not affect: 740-14 (1) the taxing power of the authority; 740-15 (2) the election process pertaining to the authority's 740-16 taxing power; or 740-17 (3) any provision of Section 275.020. 740-18 Sec. 275.018. HYDROELECTRIC POWER. The authority may 740-19 produce and sell hydroelectric energy or power on a wholesale basis 740-20 to any public utility on terms and conditions as the parties may 740-21 agree. 740-22 Sec. 275.019. AD VALOREM TAXES; ELECTION. (a) Subject to 740-23 the limitation prescribed in this section, the authority may levy 740-24 and collect the ad valorem taxes that are voted at an election 740-25 called by the board for the purpose and conducted throughout the 740-26 territory of the authority. 741-1 (b) The maximum rate of tax that may be levied and collected 741-2 for any year is 15 cents on the $100 of taxable property based on 741-3 the assessed valuation. 741-4 (c) Only qualified electors may vote in a tax election. 741-5 (d) An elector otherwise qualified must vote in the county 741-6 and precinct where the elector resides. 741-7 (e) The resolution calling for a tax election must state the 741-8 maximum rate or rates of taxes that are to be authorized. 741-9 (f) The authority shall publish notice of a tax election and 741-10 the proposed tax rates at least once in each of four weeks on the 741-11 same day of each week in a newspaper published in, or having 741-12 general circulation in, each county within the authority. The date 741-13 of the first publication must be at least 30 days before the date 741-14 of the election. 741-15 (g) The resolution calling for an election must specify the 741-16 voting places in each of the several counties. The notice of an 741-17 election will be sufficient as to any county within the authority 741-18 if it states that the election is to be held throughout the 741-19 territory comprising the authority and specifies the voting places 741-20 in such county. It shall not be necessary to publish such details 741-21 except in the county to which the details are applicable. 741-22 (h) Returns of the election shall be made to the board. 741-23 (i) If a majority of the qualified electors voting in a 741-24 majority of the counties that are wholly or partially within the 741-25 authority and a majority of the qualified electors voting in the 741-26 entire authority vote in favor of the levy of the tax, the board 742-1 may levy the tax at the maximum rate approved by the electors. 742-2 (j) The rate of tax shall be uniform throughout the 742-3 territory comprising the authority and shall be certified by the 742-4 president and secretary of the authority to the tax assessor and 742-5 the tax collector of each included county. 742-6 (k) The board may use funds from a tax that was approved by 742-7 the electors under this section for any purpose authorized by the 742-8 powers conferred on the authority by this chapter. 742-9 Sec. 275.020. CERTAIN LANDS AND PROPERTY EXCLUDED. (a) It 742-10 is found that none of the lands and property owned or controlled by 742-11 a railroad company or motor carrier regulated by the Railroad 742-12 Commission of Texas within the authority benefit from the exercise 742-13 of any powers conferred by this chapter, and such lands and 742-14 property are expressly excluded from the authority. None of the 742-15 lands or property of such railroad companies or motor carriers 742-16 regulated by the Railroad Commission of Texas may be subjected to 742-17 any of the specific or general provisions in the chapter. The 742-18 finding under this subsection supersedes the provisions of Section 742-19 275.003 and any other sections of this chapter. 742-20 (b) The taxing power and authority provided by this chapter 742-21 shall not extend to nor apply to the lands and property of a 742-22 railroad company or motor carrier regulated by the Railroad 742-23 Commission of Texas required by law to pay a tax on intangible 742-24 assets, and no tax assessor, collector, or any other public 742-25 official shall have any powers relating to taxation or otherwise 742-26 over such properties. 743-1 (c) If a tax assessor or collector of any county wholly or 743-2 partly within the authority undertaking an official act for the 743-3 authority exercises or attempts to exercise any act that could be 743-4 construed by a railroad company or motor carrier regulated by the 743-5 Railroad Commission of Texas as extending a taxing power or 743-6 authority over the lands and property of the railroad company or 743-7 motor carrier, the railroad company or motor carrier may withhold 743-8 payment to the county for which the tax assessor or collector 743-9 normally performs official duties for the reasons that: 743-10 (1) the lands and properties of the companies do not 743-11 benefit from the exercise of any powers contained in this chapter; 743-12 and 743-13 (2) the companies are not required to pay any taxes to 743-14 the authority because they are required by law to pay a tax on 743-15 intangible assets. 743-16 (d) Any court of competent jurisdiction within this state 743-17 shall enforce the provisions of this section through injunction, 743-18 mandatory injunction, writ of prohibition, or any other process 743-19 entered or promulgated to effectuate the sense and purposes of this 743-20 section. 743-21 (e) At an election called by the authority or an authorized 743-22 public official for the purpose of levying a tax provided by this 743-23 chapter, the ballot and the notice of the election shall confine 743-24 the property subject to taxation to property that benefits by 743-25 submitting to the voters the proposition substantially as follows: 743-26 "Shall Trinity River Authority of Texas be 744-1 authorized to levy a tax on all taxable 744-2 property in the authority at a rate not to 744-3 exceed 15 cents on the $100 of assessed 744-4 valuation?" 744-5 Sec. 275.021. TAX ASSESSMENT AND COLLECTION. (a) The 744-6 rendition and assessment of property for taxation and the 744-7 collection of taxes for the benefit of the authority shall be in 744-8 accordance with the law applicable to counties, in so far as such 744-9 law is applicable. 744-10 (b) Renditions shall be to the county tax assessor of the 744-11 county in which the property is taxable for state and county 744-12 purposes. 744-13 (c) The assessor and collector in each county shall place on 744-14 the county tax rolls any additional columns that are needed to show 744-15 the tax levied by the authority and the amount of the tax, based on 744-16 the value of the property as approved finally for state and county 744-17 purposes by the board of equalization of the county. 744-18 (d) The fee for assessing and collecting taxes shall be 744-19 one-half of one percent of the taxes collected. The fee shall be 744-20 paid over and disbursed in each county as are other fees of office. 744-21 (e) Laws for the enforcement of state and county taxes shall 744-22 be available to the authority. The authority may require the 744-23 officers of each county to enforce the taxes due to the authority 744-24 in that county, as provided in the law for the enforcement of state 744-25 and county taxes. 744-26 (f) Taxes assessed and levied for the benefit of the 745-1 authority shall be payable and shall become delinquent at the same 745-2 time, in the same manner, and subject to the same discount for 745-3 advance payment as taxes levied by and for the benefit of the 745-4 county in which the property is taxable. 745-5 Sec. 275.022. BONDS. (a) For the purpose of carrying out 745-6 any powers of the authority, the authority may issue negotiable 745-7 bonds of three general classes: 745-8 (1) bonds secured by ad valorem taxes, when voted, 745-9 provided that the maximum rate of tax in any one year to be levied 745-10 by the authority for bonds and all other purposes shall not exceed 745-11 15 cents on the $100 of taxable property; 745-12 (2) bonds secured solely by a pledge of all or part of 745-13 the revenues accruing to the authority, including revenues received 745-14 from the sale of water, the rendition of services, tolls, charges, 745-15 and all sources other than ad valorem taxes; and 745-16 (3) bonds secured by a combination pledge of revenues 745-17 and taxes, provided that taxes will be collected for the purpose 745-18 only to the extent that the revenues are insufficient to provide 745-19 the amount of money necessary to pay operating and maintenance 745-20 expenses and to service the bonds as prescribed in the resolution 745-21 authorizing, or the indenture securing, the bonds. 745-22 (b) The authority may issue bonds prescribed in Subsection 745-23 (a)(2) by action of the board and without an election. Bonds 745-24 issued under Subsections (a)(1) and (3) may be issued only after 745-25 authorization at an election held throughout the territory 745-26 comprising the authority. The elections shall be conducted 746-1 substantially in accordance with the procedure prescribed in 746-2 Section 275.019 for elections authorizing ad valorem taxes. The 746-3 qualifications of voters at bond elections shall be the same as 746-4 those prescribed in Section 275.019 for elections authorizing ad 746-5 valorem taxes. 746-6 (c) Bonds of the authority must be authorized by resolution 746-7 adopted by the board and shall be signed by the president or vice 746-8 president, attested by the secretary, and impressed with the seal 746-9 of the authority. At the discretion of the board, as evidenced by 746-10 the resolution, bonds may be issued bearing the facsimile signature 746-11 of the president or vice president and the seal of the authority 746-12 may be printed on the bonds, but the signature of the secretary 746-13 must be manually affixed. Bonds must mature serially or otherwise 746-14 within the period and at the times prescribed in the resolution, 746-15 not to exceed 50 years. The bonds may be sold at a price and under 746-16 terms determined by the board to be the most advantageous 746-17 reasonably obtainable, provided that the interest cost to the 746-18 authority calculated by the use of standard bond interest tables 746-19 currently in use by insurance companies and investment houses does 746-20 not exceed six percent per year, except that bonds payable wholly 746-21 or partially from taxes shall bear interest costs not to exceed 746-22 four and one-half percent per year. The bonds, at the discretion 746-23 of the board, may be made callable prior to maturity at the times 746-24 and prices prescribed in the resolution authorizing the bonds. The 746-25 bonds may be registrable as to principal or as to both principal 746-26 and interest. Appropriate provisions may be inserted in the 747-1 resolution authorizing the execution and delivery of bonds for the 747-2 conversion of registered bonds into bearer bonds and vice versa. 747-3 Provisions may be made in the bond resolution or trust indenture 747-4 for the substitution of new bonds for those lost or mutilated. If 747-5 bonds are approved by the attorney general and registered by the 747-6 comptroller as prescribed in Subsection (l), it shall not be 747-7 necessary to obtain the approval of the attorney general or 747-8 registration by the comptroller of the converted or substituted 747-9 bonds. 747-10 (d) Bonds secured wholly or in part by a pledge of the 747-11 revenues of the authority may be secured by all or part of the 747-12 revenues specified in the resolution authorizing the bonds or in 747-13 the indenture securing the bonds. At the discretion of the board, 747-14 bonds may be secured further by a lien on all or any part of the 747-15 physical property of the authority. In making the pledge of the 747-16 revenues the right, under the conditions specified in the pledge, 747-17 to issue additional bonds to be on a parity with, senior to, or 747-18 subordinate to the bonds then being issued may be expressly 747-19 reserved. 747-20 (e) If bonds are issued payable wholly from ad valorem 747-21 taxes, the board shall, at the time of the authorization of the 747-22 bonds, levy a tax sufficient to pay the principal of and interest 747-23 on the bonds as the interest and principal become due and shall 747-24 provide the reserve funds if prescribed in the resolution 747-25 authorizing or the trust indenture securing the bonds, with regard 747-26 to the maximum rate of tax permitted under this chapter. 748-1 (f) If bonds are issued payable both from ad valorem taxes 748-2 and from revenues of the authority, an ad valorem tax shall be 748-3 levied at the time of the authorization of the bonds sufficient to 748-4 pay the principal of and interest on the bonds and create and 748-5 maintain reserve funds, but the rate of tax to be collected for any 748-6 year shall be set to take into consideration the money that has 748-7 been in the interest and sinking fund from the pledged revenues and 748-8 that will be available for payment of the principal and interest 748-9 and for the creation of the reserve funds, to the extent and in the 748-10 manner permitted by the resolution authorizing or the trust 748-11 indenture securing the bonds. 748-12 (g) If bonds are issued payable wholly from revenues, the 748-13 board shall set and from time to time revise the rates, tolls, and 748-14 charges for the sales and services rendered by the authority. The 748-15 revenues from the rates, tolls, and charges are pledged so that the 748-16 rates, tolls, and charges will yield sufficient money to pay the 748-17 designated expenses of the authority and the principal of and 748-18 interest on the bonds as the principal and interest mature and to 748-19 create and maintain funds as prescribed in the resolution 748-20 authorizing or the trust indenture securing the bonds. If the 748-21 bonds are issued payable both from ad valorem taxes and from 748-22 revenues, the board shall set and from time to time revise the rate 748-23 of compensation for water sold, services rendered, and tolls and 748-24 charges levied by the authority, to the extent the revenues are 748-25 pledged and to the extent sufficient to assure compliance with the 748-26 resolution authorizing the bonds or the trust indenture securing 749-1 the bonds. 749-2 (h) From the proceeds of the sale of any issue of bonds the 749-3 authority may set aside an amount for the payment of interest 749-4 anticipated to accrue for the period specified, or for the 749-5 construction period and two additional years, and to provide for a 749-6 deposit into reserves for the interest and sinking fund to the 749-7 extent prescribed in the resolution authorizing or the trust 749-8 indenture securing the bonds. Proceeds from the sale of the bonds 749-9 shall be used for the purposes for which the bonds were authorized 749-10 and may be used for the payment of all expenses necessarily 749-11 incurred in accomplishing the purposes for which the authority is 749-12 created, including the expense of issuing and selling the bonds. 749-13 However, no expenditure of the proceeds shall be made in violation 749-14 of the provisions in the resolution authorizing or the trust 749-15 indenture securing the bonds. 749-16 (i) In the event of a default or a threatened default in the 749-17 payment of the principal of or interest on bonds payable wholly or 749-18 partially from revenues, any court of competent jurisdiction may, 749-19 on petition of the holders of outstanding bonds, appoint a receiver 749-20 with authority to collect and receive all income of the authority 749-21 except taxes, employ and discharge agents and employees of the 749-22 authority, take charge of funds on hand, except funds received from 749-23 taxes unless commingled, and manage the proprietary affairs of the 749-24 authority without consent or hindrance by the directors. The 749-25 receiver may also be authorized to sell or make contracts for the 749-26 sale of water or renew such contracts with the approval of the 750-1 court appointing the receiver. The court may vest the receiver 750-2 with other powers and duties the court may find necessary for the 750-3 protection of the holders of the bonds. The resolution authorizing 750-4 the issuance of the bonds or the trust indenture securing the bonds 750-5 may limit or qualify the rights of the holders of less than all of 750-6 the outstanding bonds payable from the same source to institute or 750-7 prosecute any litigation affecting the authority's property or 750-8 income. 750-9 (j) Pending the issuance of definitive bonds the board may 750-10 authorize the delivery of negotiable interim bonds or notes, 750-11 eligible for exchange or substitution, by use of definitive bonds. 750-12 (k) The authority is authorized to issue refunding bonds for 750-13 the purpose of refunding any outstanding bonds and interest on the 750-14 bonds authorized by this chapter or any other indebtedness which 750-15 the authority may lawfully assume. The refunding bonds may be 750-16 issued to refund more than one series of outstanding bonds and may 750-17 for the benefit of the refunding bonds combine the pledges securing 750-18 the outstanding bonds and may inject additional security for the 750-19 refunding issue. Refunding bonds shall be registrable by the 750-20 comptroller on surrender and cancellation of the bonds to be 750-21 refunded, but in lieu of that procedure the resolution authorizing 750-22 the issuance of the refunding bonds may provide that the bonds 750-23 shall be sold and the proceeds deposited in the bank, or in one or 750-24 more of the banks where the original bonds are payable. If the 750-25 bonds are sold and the proceeds deposited in the bank, the 750-26 refunding bonds may be issued in an amount sufficient to pay the 751-1 interest on the original bonds to their maturity date, or to the 751-2 date on which the bonds are to be redeemed, and the amount of the 751-3 call premium, if any, for bonds called for redemption prior to 751-4 maturity; in that event the comptroller shall register the 751-5 refunding bonds without the concurrent surrender and cancellation 751-6 of the original bonds. No election shall be necessary in 751-7 connection with the authorization and issuance of refunding bonds. 751-8 (l) Bonds shall not be issued by the authority until the 751-9 bonds have been approved by the attorney general. After the bonds 751-10 have been approved by the attorney general and registered by the 751-11 comptroller the bonds are negotiable and incontestable. If the 751-12 bonds of an issue have been properly approved and registered, the 751-13 replacement bonds delivered by the authority in lieu of the 751-14 approved and registered bonds under Subsection (c), in connection 751-15 with the exchange of registered for unregistered bonds or 751-16 unregistered bonds for registered bonds, or in lieu of lost or 751-17 mutilated bonds, need not be reapproved by the attorney general or 751-18 reregistered by the comptroller. The replacement bonds are 751-19 incontestable except that the limitations resulting from 751-20 registration are negotiable. 751-21 (m) Bonds, including refunding bonds, authorized by this 751-22 chapter and not payable wholly from ad valorem taxes may be 751-23 additionally secured by a trust indenture under which the trustee 751-24 may be a bank having trust powers situated either within or outside 751-25 the state. The trust indenture may contain provisions prescribed 751-26 by the board for the security of the bonds and the preservation of 752-1 the properties, contracts, and rights of the authority. The trust 752-2 indenture may contain a provision for the amendment or modification 752-3 of the indenture in the manner prescribed in the indenture. 752-4 Without limiting the generality of the provisions contained in the 752-5 indenture, the indenture may provide that the authority shall 752-6 comply with the requirements of designated consulting engineers for 752-7 the proper maintenance and operation of the authority's properties 752-8 and for the setting of adequate tolls, charges, and rates to assure 752-9 proper maintenance and operation and to provide proper debt service 752-10 for the outstanding bonds in the manner prescribed in the 752-11 resolution authorizing the issuance of the bonds or in the trust 752-12 indenture securing the bonds. 752-13 (n) The proceeds from the sale of any issue of bonds may, 752-14 within the discretion of the board, be invested during the period 752-15 of construction, or before the use of the proceeds for construction 752-16 purposes, in bonds or other direct obligations of the United States 752-17 government, and the securities may be sold pursuant to the 752-18 directions of the board as and when needed for construction 752-19 purposes. 752-20 Sec. 275.023. BOND VALIDATION BY DISTRICT COURT. (a) The 752-21 authority, in lieu of having its bonds and water supply or sewer 752-22 contracts approved by the attorney general, and at the discretion 752-23 of the board, may have the bonds and contracts validated by a suit 752-24 in the district court in the manner and with the effect provided in 752-25 Sections 55.504-55.510, relating to water improvement districts. 752-26 However, the publication of the general notice of the suit shall be 753-1 in a newspaper designated by the judge of the court in which the 753-2 suit is filed, and the interest rate and sale price of the bonds 753-3 need not be set until after the termination of the suit. 753-4 (b) If the proposed bonds recite that the bonds are secured 753-5 by a pledge of the proceeds of a contract or contracts previously 753-6 made between the authority and one or more cities, the petition 753-7 shall so allege and the general notice of the suit must specify the 753-8 allegation and the city fund or revenues from which the contract or 753-9 contracts are payable. The judgment shall be res judicata as to 753-10 the validity of the contract or contracts and the pledge of the 753-11 revenues of the contract or contracts. 753-12 Sec. 275.024. INVESTMENT AND DEPOSIT OF FUNDS. The 753-13 authority may invest any of its funds, including proceeds from the 753-14 sale of bonds, in direct obligations of, or obligations whose 753-15 principal and interest are guaranteed by, the United States and may 753-16 invest the funds in direct obligations of the Federal Intermediate 753-17 Credit Bank, the Federal Home Loan Bank, the Federal Land Bank, or 753-18 banks for cooperatives and may place the funds of the authority on 753-19 interest bearing time deposits with banks if the deposits are 753-20 secured with a pledge of securities of the kind specified in this 753-21 section, to the extent not otherwise provided in the resolution or 753-22 the trust indenture under which the bonds are issued. Income and 753-23 profits on the investments shall be applied as provided in the 753-24 resolution or trust indenture. 753-25 Sec. 275.025. BOND ISSUANCE. The authority is authorized to 753-26 issue bonds for cash or in exchange for property of any kind, real, 754-1 personal, or mixed, or any interest in property that the board 754-2 considers necessary or convenient for any corporate purpose. 754-3 Sec. 275.026. EXEMPTION FROM TAXATION. The accomplishment 754-4 of the purposes stated in this chapter being for the benefit of the 754-5 people of the state and for the protection and improvement of their 754-6 properties and industries, the authority, in carrying out the 754-7 purposes of this chapter, will be performing an essential public 754-8 function under the constitution and is not required to pay any tax 754-9 or assessments on its properties. The bonds issued as provided by 754-10 this chapter and the transfer and the income from the bonds, 754-11 including the profits made on the sale of the bonds, are at all 754-12 times free from taxation within this state. 754-13 Sec. 275.027. BONDS AS INVESTMENTS AND SECURITY FOR 754-14 DEPOSITS. (a) All bonds of the authority are legal and authorized 754-15 investments for banks, savings banks, trust companies, building and 754-16 loan associations, savings and loan associations, and insurance 754-17 companies. 754-18 (b) Authority bonds are eligible to secure the deposit of 754-19 all public funds of the state and all public funds of cities, 754-20 towns, villages, counties, school districts, or other political 754-21 corporations or subdivisions of the state. The bonds are lawful 754-22 and sufficient security for the deposits to the extent of the 754-23 principal amount of the bonds or the value of the bonds on the 754-24 market, whichever is less, when accompanied by all unmatured 754-25 coupons. 754-26 Sec. 275.028. MASTER PLAN. (a) The authority shall prepare 755-1 a master plan for the maximum development of the soil and water 755-2 resources of the entire Trinity River watershed, including plans 755-3 for the complete utilization, for all economically beneficial 755-4 purposes, of the water resources of the watershed. The portion of 755-5 the master plan and any amendments to the plan relating to soil 755-6 conservation and upstream flood prevention structures shall be 755-7 prepared by the soil conservation districts on the Trinity River 755-8 watershed, subject to approval by the State Soil and Water 755-9 Conservation Board. The master plan shall be filed with and 755-10 approved by the commission. Notwithstanding any provision of this 755-11 chapter, the portion of the master plan pertaining to the 755-12 designation of major reservoir sites on Chambers Creek shall not be 755-13 effective unless approved by Ellis County Drainage District No. 1 755-14 and any designation of major reservoir sites on Waxahachie Creek 755-15 other than the Bardwell site shall not be effective unless approved 755-16 by Ellis County Water Improvement District No. 1. The master plan 755-17 may be amended or supplemented from time to time by the authority, 755-18 provided that a copy of the amendment or supplement to the master 755-19 plan is filed with and approved by the commission. 755-20 (b) After the master plan has been filed with the 755-21 commission, the plan of a water development proposed within the 755-22 Trinity River watershed not exempted by law from the requirements 755-23 for procuring a permit shall be submitted to the commission. A 755-24 copy of the proposed water development plan shall be furnished to 755-25 the board, which shall make recommendations in reference to the 755-26 proposed development to the commission within 60 days after receipt 756-1 of the copy of the proposed water development plan. The commission 756-2 shall hold a hearing at which the proponents of the proposed 756-3 development and the authority shall have an opportunity to present 756-4 evidence and recommendations to the commission. The commission 756-5 shall approve or disapprove the proposed water development 756-6 notwithstanding any provision of the master plan in accordance with 756-7 the provisions of Section 16.020. 756-8 Sec. 275.029. PURCHASE OR CONSTRUCTION CONTRACT. A 756-9 construction contract or contract for the purchase of material, 756-10 equipment, or supplies is subject to the requirements of general 756-11 law. 756-12 Sec. 275.030. CONSERVATION DISTRICTS. (a) This chapter 756-13 shall not prevent the organization of conservation districts or 756-14 prevent boundary changes of conservation districts within the 756-15 boundaries of the authority as authorized in Section 59, Article 756-16 XVI, Texas Constitution, or as prescribed in Section 52, Article 756-17 III, Texas Constitution. After the master plan of the authority 756-18 has been prepared and after it has been filed with and approved by 756-19 the commission as prescribed in Section 275.028, the procedure 756-20 prescribed in Section 275.028 shall be followed. Until the master 756-21 plan has been filed with and approved by the commission, it shall 756-22 be the duty of the sponsors of a conservation district to file with 756-23 the board information as to proposed plans of the district. It 756-24 shall also be the duty of an existing district within the Trinity 756-25 River watershed to file with the board information regarding the 756-26 district's planned improvements so that the authority may make 757-1 recommendations to the commission within 60 days from the date the 757-2 district files the information. 757-3 (b) To the extent that the creation of a conservation 757-4 district or the prosecution of the planned improvements of a 757-5 conservation district is in harmony with the objectives of the 757-6 authority, it shall be the duty of the authority to cooperate in 757-7 every practical manner with the sponsors of the proposed or 757-8 existing conservation district in the prosecution of the proposed 757-9 improvements. It shall be the duty of the authority to encourage 757-10 the improvements in local areas where the expense of the project is 757-11 to be borne principally by the local property owners. To the 757-12 extent that the authority is financially capable of cooperating and 757-13 to the extent that the local agency will be performing a service 757-14 that is the duty of the authority, the authority shall, within the 757-15 discretion of the board, cooperate financially in the improvements 757-16 of the conservation district. 757-17 (c) The authority, within its ability, is authorized to 757-18 cooperate with a conservation district, or with any other municipal 757-19 or public agency in the Trinity River watershed, in providing a 757-20 water supply, to the extent that such project is feasible, in such 757-21 a manner that the needs of the district, municipality, or public 757-22 agency are fully met, but with provision that water not needed for 757-23 such purposes will continue to be available for the uses and 757-24 purposes of the authority. The board is authorized to issue the 757-25 authority's bonds for the purpose of cooperating in water supply 757-26 projects. 758-1 Sec. 275.031. SOIL CONSERVATION. (a) Notwithstanding any 758-2 other provisions of this chapter, the authority shall have no 758-3 control over soil conservation districts created in any county or 758-4 counties of its territory but may: 758-5 (1) assist in the accomplishment and coordination of 758-6 storm waters, floodwaters, and unappropriated flow waters 758-7 throughout the Trinity River watershed consistent with the 758-8 objectives of the soil conservation districts in the watershed 758-9 area; 758-10 (2) assist in the conservation of soil and other 758-11 surface resources against destructive erosion to prevent the 758-12 increase of flood danger incident to erosion and to prevent 758-13 sedimentation and siltation of lands, channels, reservoirs, and 758-14 coastal waters, including aiding and assisting in the work of upper 758-15 stream soil and water conservation and flood prevention projects by 758-16 the State Soil and Water Conservation Board; 758-17 (3) assist in upstream watershed projects of a soil 758-18 conservation district, particularly those projects above the 758-19 Navarro Mills, Italy, and Bardwell reservoir sites and the major 758-20 reservoir program on Richland and Chambers creeks; or 758-21 (4) encourage and, when requested, aid financially in 758-22 the construction of any upstream project or program planned or 758-23 promoted by a soil conservation district on the Trinity River 758-24 watershed below the watersheds of Upper Keechi Creek and Elkhart 758-25 Creek and in the completion of upstream programs planned by the 758-26 soil conservation districts in the Trinity River watershed above 759-1 and including the watersheds of Upper Keechi Creek and Elkhart 759-2 Creek. 759-3 (b) The authority shall have no power to control or direct 759-4 and shall have no supervisory responsibility to determine the 759-5 feasibility of, and may not negotiate, deal, or contract with 759-6 federal government agencies with regard to, federal projects under 759-7 the Watershed Protection and Flood Prevention Act (16 U.S.C. 759-8 Section 1001 et seq.), as amended, or any other federal law, in 759-9 which the federal projects' problems relating to water are merely 759-10 incidental to soil conservation projects and which federal projects 759-11 the State Soil and Water Conservation Board promotes and supervises 759-12 and with regard to which projects the board has the responsibility 759-13 and authority to deal with the federal governmental agencies on 759-14 behalf of the state. 759-15 Sec. 275.032. CREATION OF WATER CONTROL AND IMPROVEMENT 759-16 DISTRICT. If the electors of a defined area or areas acting 759-17 jointly within the authority desire, the area or areas may become a 759-18 water control and improvement district for the purpose of 759-19 independently providing, operating, and maintaining improvements 759-20 designed peculiarly to serve the defined area. The defined area 759-21 contained in the authority may constitute a water control and 759-22 improvement district under the applicable provision of Chapter 51. 759-23 Similarly, any other political subdivision of the state contained 759-24 in whole or in part in the authority may independently provide, 759-25 maintain, and operate works peculiarly designed to benefit the 759-26 political subdivision. The works and the operation of the works 760-1 shall be constructed and operated in a manner that will conform to 760-2 the authority's master plan to the greatest practicable degree. 760-3 Sec. 275.033. RIGHTS OF MUNICIPALITIES AND OTHERS. Nothing 760-4 in this chapter shall be construed to diminish, or in any other 760-5 manner affect, the right of a municipality or other political 760-6 subdivision, person, firm, or corporation to operate a water supply 760-7 system or to drill or operate wells using groundwater. 760-8 Sec. 275.034. COOPERATION WITH AGENCIES. The authority is 760-9 authorized specifically to cooperate with any agency situated 760-10 within the boundaries of the authority to the extent of paying the 760-11 costs of local improvements that will have the effect of relieving 760-12 the authority of any duty the authority might have for providing 760-13 the improvements, to the extent that the authority has money or 760-14 revenues available for the improvements and when in the opinion of 760-15 the board cooperation or contribution is justified. 760-16 Sec. 275.035. ADDITIONAL PROVISIONS REGARDING CONTRACTS AND 760-17 FUNDING. (a) The authority may make contracts with the United 760-18 States and its agencies, the state and its agencies, all municipal 760-19 corporations, political subdivisions, and districts, and private 760-20 persons. The authority may obtain loans from and accept grants 760-21 from the United States and its agencies and from the state and its 760-22 agencies and may participate in and be the beneficiary of any plan 760-23 that is evolved by the state or federal government for guaranteeing 760-24 or otherwise subsidizing the obligations of the authority; 760-25 provided, however, that a contract may not be entered into between 760-26 the authority and the federal government for navigation purposes to 761-1 any point on the Trinity River north of Ellis County, unless the 761-2 contract provides for construction and operation of the navigation 761-3 facilities to a point in Tarrant County. 761-4 (b) Without limitation as to the exercise of the general 761-5 powers of the authority as provided by Subsection (a), the 761-6 authority has the right to acquire from the United States 761-7 government through the secretary of the army, or from any other 761-8 official of the United States government authorized to make such 761-9 contracts, unsold conservation storage at the several multipurpose 761-10 dams constructed by the army within or available to the Trinity 761-11 River watershed. The authority may acquire additional conservation 761-12 storage that may be provided at any such dam. 761-13 (c) The authority may use any contract authorized by this 761-14 section as the sole basis or as a supplement to the basis for 761-15 securing the bonds of the authority. 761-16 Sec. 275.036. WATER CONSERVATION, STORAGE, PROCUREMENT, 761-17 DISTRIBUTION, AND SUPPLY. In addition to all other powers, the 761-18 authority may construct, acquire, equip, acquire storage rights at, 761-19 and operate dams and reservoirs that in the opinion of the board 761-20 are useful in carrying out the powers conferred on the authority, 761-21 whether a dam is designed to serve a single purpose or several 761-22 purposes permitted under this chapter. The authority is authorized 761-23 to provide water supply lines, water purification, and pumping 761-24 facilities. The authority may execute contracts with 761-25 municipalities in the state substantially in the manner prescribed 761-26 by Section 402.020, Local Government Code, for districts organized 762-1 or created pursuant to Section 59, Article XVI, Texas Constitution, 762-2 and may execute water supply contracts with other users of water. 762-3 Standby service, as well as the actual delivery of water, is 762-4 included in the services for which the authority may contract, and 762-5 for which it may make charges. If a dam is constructed that will 762-6 result in the impairment of gravity drainage of water from lands 762-7 protected by a levee in existence at the time this chapter becomes 762-8 effective, the authority shall, at its cost, make provision for the 762-9 installation, maintenance, and operation of pumping facilities or 762-10 provide a gravity system for the drainage of the land. 762-11 Sec. 275.037. PROTECTION OF RIGHTS. (a) The authority, in 762-12 carrying out the powers and duties secured to it under this chapter 762-13 and in the operation of any water development or conservation 762-14 projects under this chapter, shall act in a manner not to impair 762-15 the flow of the Trinity River to the detriment of the vested water 762-16 rights of users downstream. The authority shall not store storm 762-17 waters, floodwaters, and flow waters that are then needed by any 762-18 downstream appropriators to satisfy the amount of water authorized 762-19 to be appropriated by presently existing and valid water permits 762-20 and certified filings. If the authority stores waters in violation 762-21 of this subsection, the downstream appropriators may require by any 762-22 lawful means the release by the authority of the storm waters, 762-23 floodwaters, and flow waters so stored. 762-24 (b) Nothing in this chapter shall have the effect of 762-25 altering, changing, or impairing any rights or privileges existing 762-26 on September 6, 1955, to appropriate and use water from the Trinity 763-1 River. Nothing in this chapter shall have the effect of altering, 763-2 changing, or impairing any rights or privileges existing on 763-3 September 6, 1955, to apply to the commission for, and if approved 763-4 by the commission to retain or obtain, permits to appropriate and 763-5 use water from the Trinity River. 763-6 (c) The authority shall have the responsibility, both 763-7 financial and otherwise, for the construction of a saltwater 763-8 barrier with barge lock in the Trinity River at a location and of a 763-9 design approved by the Chambers-Liberty Counties Navigation 763-10 District that will protect the users of fresh water for irrigation 763-11 purposes. 763-12 Sec. 275.038. AUTHORITY DEPOSITORY. (a) The board shall 763-13 designate one or more banks within the authority to serve as 763-14 depository for the funds of the authority. All funds of the 763-15 authority shall be deposited in the depository bank or banks except 763-16 that funds pledged to pay bonds may be deposited with the trustee 763-17 bank named in the trust agreement, and except that funds shall be 763-18 remitted to the bank of payment for the payment of the principal of 763-19 and interest on bonds. To the extent that funds in the depository 763-20 banks and the trustee bank are not insured by the Federal Deposit 763-21 Insurance Corporation, the funds shall be secured in the manner 763-22 provided by law for the security of county funds. 763-23 (b) Before designating a depository bank or banks, the board 763-24 shall issue a notice stating the time and place when and where the 763-25 board will meet for that purpose and inviting the banks in the 763-26 authority to submit applications to be designated depositories. 764-1 The term of service for depositories shall be prescribed by the 764-2 board. The notice must be published one time in a newspaper or 764-3 newspapers published in the authority and specified by the board. 764-4 (c) At the time mentioned in the notice of the meeting, the 764-5 board shall consider the applications and the management and 764-6 condition of the banks filing the applications and shall designate 764-7 as depositories the bank or banks that offer the most favorable 764-8 terms and conditions for the handling of the funds of the authority 764-9 and that the board finds have proper management and are in 764-10 condition to warrant handling of authority funds. Membership on 764-11 the board of an officer or director of a bank shall not disqualify 764-12 the bank from being designated as depository. 764-13 (d) If no applications are received by the time stated in 764-14 the notice of the meeting, the board shall designate a bank or 764-15 banks within or outside the authority based on terms and conditions 764-16 the board finds advantageous to the authority. 764-17 Sec. 275.039. PROTECTION OF PROPERTIES AND WATER SUPPLY. 764-18 The authority shall have the same power to make provision for the 764-19 protection of the properties and water supply of the authority as 764-20 is provided by general law for water control and improvement 764-21 districts. 764-22 Sec. 275.040. EMPLOYEES. The board shall have full power to 764-23 employ agents, attorneys, engineers, and other employees that the 764-24 board considers necessary. Without limitation of the generality of 764-25 the employment power the board may employ fiscal agents or advisers 764-26 in connection with the authority financing program and in 765-1 connection with the issuance of authority bonds. 765-2 Sec. 275.041. ACQUISITION, SALE, OR EXCHANGE OF PROPERTY. 765-3 (a) The authority may acquire within or outside the boundaries of 765-4 the authority property, real and personal, including easements, 765-5 through purchase, gift, or exchange, that the board considers 765-6 necessary to accomplish the objectives of the authority and may 765-7 purchase the properties and facilities of any other district within 765-8 the authority created under Section 52, Article III, or Section 59, 765-9 Article XVI, Texas Constitution, and assume the indebtedness of 765-10 such properties and facilities. 765-11 (b) The board shall have the right to sell or exchange 765-12 property if within its discretion the sale or exchange is in the 765-13 best interests of the authority. 765-14 Sec. 275.042. ACQUISITION OF WATER. (a) The authority 765-15 shall acquire water appropriation permits directly from the 765-16 commission and may purchase permits from owners of permits. The 765-17 authority may purchase water, or a water supply, from any person, 765-18 firm, corporation, or public agency or from the United States or 765-19 its agencies. 765-20 (b) Nothing in this chapter shall impair the authority 765-21 granted the commission under the general laws of the state to 765-22 prescribe rates governing the sale of surface water by or to the 765-23 authority. 765-24 Sec. 275.043. EMINENT DOMAIN. (a) For the purpose of 765-25 carrying out any power or authority conferred by this chapter the 765-26 authority may acquire land, property, and easements within the 766-1 authority, including land above the probable high-water line around 766-2 any reservoir, by condemnation in the manner provided by Chapter 766-3 21, Property Code. The authority is declared to be a municipal 766-4 corporation within the meaning of Section 21.021(c), Property Code. 766-5 The amount of and character of interest in land and easements thus 766-6 to be acquired shall be determined by the board; provided, however, 766-7 that the authority shall only acquire the land, property, and 766-8 easements reasonably necessary. 766-9 (b) If the authority, in the exercise of the power of 766-10 eminent domain or power of relocation or any other power granted 766-11 under this chapter, makes necessary the relocation, raising, 766-12 rerouting, changing of grade, or alteration of construction of any 766-13 highway, railroad, electric transmission line, telephone or 766-14 telegraph properties and facilities, or pipeline, the relocation, 766-15 raising, rerouting, changing of grade, or alteration of 766-16 construction shall be accomplished at the sole expense of the 766-17 authority. 766-18 Sec. 275.044. SCOPE OF AUTHORITY POWERS. No provision of 766-19 this chapter is intended to or shall in any manner impair or change 766-20 any of the powers, rights, or privileges existing on September 6, 766-21 1955, or conferred before that time on the North Texas Municipal 766-22 Water District, Tarrant County Water Control & Improvement District 766-23 No. 1, the Chambers-Liberty Counties Navigation District, or the 766-24 municipalities within the authority area, but each of the districts 766-25 and municipalities shall have, keep, and retain all the powers 766-26 conferred by law and otherwise rightfully acquired on and by the 767-1 district or municipality, notwithstanding anything in this chapter 767-2 to the contrary. 767-3 Sec. 275.045. LIMITATIONS ON AUTHORITY. (a) The powers, 767-4 authority, and duties granted to the authority in this chapter 767-5 shall be applicable only in the counties expressly named in Section 767-6 275.003, and in no other county or counties of this state, 767-7 notwithstanding anything in this chapter to the contrary. 767-8 (b) The authority or jurisdiction of the authority shall be 767-9 confined to counties enumerated in Sections 275.003 and 275.004(c). 767-10 Counties or parts of counties within the Trinity River watershed 767-11 that are not mentioned in those sections are outside the 767-12 jurisdiction and authority of the authority and are not affected by 767-13 the provisions of this chapter. 767-14 Sec. 275.046. RIPARIAN RIGHTS. No provision of this chapter 767-15 shall be construed to affect, alter, or impair riparian rights. 767-16 CHAPTER 276. UPPER COLORADO RIVER AUTHORITY 767-17 Sec. 276.001. CREATION. (a) A conservation and reclamation 767-18 district to be known as the "Upper Colorado River Authority" is 767-19 created. The authority is a governmental agency and a body politic 767-20 and corporate. 767-21 (b) The authority is created under and is essential to 767-22 accomplish the purposes of Section 59(a), Article XVI, Texas 767-23 Constitution, including, to the extent authorized by this chapter, 767-24 the control, storing, preservation, and distribution of the waters 767-25 of the Upper Colorado River and its tributaries for irrigation, 767-26 power, and other useful purposes, the reclamation and irrigation of 768-1 arid, semiarid, and other lands needing irrigation, and the 768-2 conservation and development of the forests, water and 768-3 hydroelectric power of the state. Nothing in this chapter or in 768-4 any other law shall be construed as authorizing the authority to 768-5 levy or collect taxes or assessments or to create any indebtedness 768-6 payable out of taxes or assessments or in any way to pledge the 768-7 credit of the state. 768-8 Sec. 276.002. DEFINITIONS. In this chapter: 768-9 (1) "Authority" means the Upper Colorado River 768-10 Authority. 768-11 (2) "Board" means the board of directors of the 768-12 authority. 768-13 (3) "Director" means a member of the board. 768-14 Sec. 276.003. TERRITORY. The authority includes all the 768-15 territory within the boundaries of Coke and Tom Green counties. 768-16 Sec. 276.004. POWERS AND DUTIES. (a) Except as expressly 768-17 limited by this chapter, the authority has all the powers, rights, 768-18 privileges, and functions conferred by general law on any district 768-19 or districts created pursuant to Section 59, Article XVI, Texas 768-20 Constitution, and as provided by this section. 768-21 (b) The authority may control, store, and preserve, within 768-22 the boundaries of the authority, the waters of the Colorado River 768-23 and its tributaries for any useful purpose and may use, distribute, 768-24 and sell those waters within the boundaries of the authority for 768-25 any such purposes. 768-26 (c) The authority may sell and distribute water outside the 769-1 boundaries of the authority to any municipality for domestic, 769-2 municipal, and irrigation purposes and to any person, firm, or 769-3 corporation for municipal purposes or irrigation and may construct 769-4 flumes, irrigation ditches, pipelines, and storage reservoirs 769-5 outside the authority for such purposes. 769-6 (d) The authority may develop and generate waterpower and 769-7 electric energy within the boundaries of the authority and may 769-8 distribute and sell waterpower and electric energy within or 769-9 outside the boundaries of the authority, but such use shall be 769-10 subordinate and inferior to all requirements for irrigation. 769-11 (e) The authority may prevent or aid in the prevention of 769-12 damage to persons or property from the waters of the Colorado River 769-13 and its tributaries. 769-14 (f) The authority may forest and reforest and aid in the 769-15 foresting and reforesting of the watershed area of the Colorado 769-16 River and its tributaries and may prevent and aid in the prevention 769-17 of soil erosion and floods within the watershed area. 769-18 (g) The authority may acquire by purchase, lease, or gift or 769-19 in any other manner, other than by condemnation, and may maintain, 769-20 use, and operate property of any kind, real, personal, or mixed, or 769-21 any interest in property, within or outside the boundaries of the 769-22 authority, necessary or convenient to the exercise of the powers, 769-23 rights, privileges, and functions conferred on the authority by 769-24 this chapter. 769-25 (h) The authority may acquire by condemnation property of 769-26 any kind, real, personal, or mixed, or any interest in property, 770-1 within or outside the boundaries of the authority, necessary or 770-2 convenient to the exercise of the powers, rights, privileges, and 770-3 functions conferred on the authority by this chapter. The 770-4 authority may condemn property in the manner provided by general 770-5 law with respect to condemnation or, at the option of the 770-6 authority, in the manner provided by the statutes relating to 770-7 condemnation by districts organized under general law pursuant to 770-8 Section 59, Article XVI, Texas Constitution. 770-9 (i) The authority may, subject to the provisions of this 770-10 chapter, sell or otherwise dispose of property of any kind, real, 770-11 personal, or mixed, or any interest in property, that is not 770-12 necessary to carrying on the business of the authority. 770-13 (j) The authority may overflow and inundate any public lands 770-14 and public property and may require the relocation of roads and 770-15 highways in the manner and to the extent permitted to districts 770-16 organized under general law pursuant to Section 59, Article XVI, 770-17 Texas Constitution. 770-18 (k) The authority may construct, extend, improve, maintain, 770-19 and reconstruct, or cause to be constructed, extended, improved, 770-20 maintained, and reconstructed, and may use and operate facilities 770-21 of any kind necessary or convenient to the exercise of its powers, 770-22 rights, privileges, and functions. 770-23 (l) The authority may sue and be sued in its corporate name. 770-24 (m) The authority may make bylaws for the management and 770-25 regulation of its affairs. 770-26 (n) The authority may adopt, use, and alter a corporate 771-1 seal. 771-2 (o) The authority may appoint officers, agents, and 771-3 employees and may prescribe their duties and fix their 771-4 compensation. 771-5 (p) The authority may make contracts and execute instruments 771-6 necessary or convenient to the exercise of the powers, rights, 771-7 privileges, and functions conferred on the authority by this 771-8 chapter. 771-9 (q) The authority may borrow money for its corporate 771-10 purposes and may borrow money and accept grants from the United 771-11 States and, in connection with such loan or grant, may enter into 771-12 such agreements as the United States or such corporation or agency 771-13 may require. The authority may make and issue negotiable bonds for 771-14 funds borrowed in the manner and to the extent provided by Section 771-15 276.014. Nothing in this chapter shall be construed to authorize 771-16 the issuance of any bonds, notes, or other evidences of 771-17 indebtedness of the authority except as specifically provided by 771-18 this chapter, and no issuance of bonds, notes, or other evidences 771-19 of indebtedness of the authority, except as specifically provided 771-20 by this chapter, shall ever be authorized except by an act of the 771-21 legislature. 771-22 (r) The authority may do any other acts or things necessary 771-23 or convenient to the exercise of the powers, rights, privileges, or 771-24 functions conferred on the authority by this chapter or any other 771-25 act or law. 771-26 Sec. 276.005. REVENUE BONDS. The authority and the Brazos 772-1 River Authority, originally created by Chapter 13, Special Laws, 772-2 Acts of the 41st Legislature, 2nd Called Session, 1929, may issue 772-3 negotiable revenue bonds secured only by pledge of the amounts 772-4 granted or donated by the state or out of any other current 772-5 revenues of the authority in such amount as may be authorized by 772-6 the board of such authority, which amounts shall be paid to the 772-7 legal holders of such bonds. 772-8 Sec. 276.006. LIMITATIONS OF AUTHORITY. (a) 772-9 Notwithstanding any rights or permits issued by the commission or 772-10 its predecessor agency that are held or acquired by the authority, 772-11 the impounding and use of the floodwaters of the Colorado River or 772-12 its tributaries for the generation of hydroelectric power by the 772-13 authority or anyone who may succeed to the rights and privileges 772-14 conferred on the authority by this chapter are subject to the 772-15 rights of a person, municipal corporation, or body politic that is 772-16 impounding or putting to beneficial use the waters for the purposes 772-17 set forth in Section 11.024(1)-(3) if the person, municipal 772-18 corporation, or body politic: 772-19 (1) has received a permit for the use from the 772-20 commission; or 772-21 (2) is permitted to impound water for the purposes 772-22 described by this subsection. 772-23 (b) Nothing in this chapter shall be construed to subject to 772-24 condemnation by the authority or any successors, or by anyone who 772-25 may succeed to the rights and privileges conferred on the authority 772-26 by this chapter, any waters: 773-1 (1) impounded or to be impounded within or outside the 773-2 authority under any law authorizing water to be impounded or under 773-3 any permits granted to a municipal corporation or body politic; or 773-4 (2) impounded or permitted to be impounded or used 773-5 outside the authority under permits granted to any person. 773-6 (c) Nothing in this chapter shall be construed as depriving 773-7 any person or municipality of the right to impound the waters of 773-8 the Colorado River or its tributaries for domestic or municipal 773-9 purposes or as repealing any law granting such rights to persons 773-10 and municipalities. 773-11 (d) The rights of the authority to impound, use, and sell 773-12 the waters of the Colorado River and its tributaries for the 773-13 generation of hydroelectric power are subordinate and inferior to 773-14 the rights of: 773-15 (1) cities and towns situated within the watershed of 773-16 the Colorado River and its tributaries to build dams and impound 773-17 floodwaters for municipal purposes; and 773-18 (2) any citizen of Texas, or bodies politic, to build 773-19 dams and impound the floodwaters within the watershed of the 773-20 Colorado River and its tributaries for domestic purposes and for 773-21 the purposes of irrigation. 773-22 (e) The title to any rights, properties, licenses, 773-23 franchises, or permits acquired, or to be acquired, by the 773-24 authority shall be subject to the limitations imposed by Subsection 773-25 (d). 773-26 Sec. 276.007. BOARD OF DIRECTORS; QUORUM; VOTING 774-1 REQUIREMENTS. (a) The powers, rights, privileges, and functions 774-2 of the authority shall be exercised by a board of nine directors. 774-3 (b) Each director must be a resident and freehold property 774-4 taxpayer of the state. Three of the directors must be resident 774-5 citizens of Tom Green County, three must be resident citizens of 774-6 Coke County, and three must be resident citizens of counties 774-7 contiguous to the authority or in any county any part of which may 774-8 be within 25 miles of the authority. 774-9 (c) All of the directors shall be appointed by the governor 774-10 with the advice and consent of the senate. Directors are appointed 774-11 for staggered terms of six years, with three directors' terms 774-12 expiring on February 1 of each odd-numbered year. At the 774-13 expiration of the term of a director, a successor shall be 774-14 appointed by the governor. 774-15 (d) Each director shall hold office until the expiration of 774-16 the term for which the director was appointed and until a successor 774-17 is appointed and has qualified, unless removed sooner as provided 774-18 by this chapter. A director may be removed by the governor for 774-19 inefficiency, neglect of duty, or misconduct in office, after at 774-20 least 10 days' written notice of the charges against the director 774-21 and an opportunity to be heard in person or by counsel at a public 774-22 hearing. A vacancy resulting from the death, resignation, or 774-23 removal of a director shall be filled by the governor for the 774-24 unexpired term. 774-25 (e) Each director shall qualify by taking the official oath 774-26 of office prescribed by general statute. 775-1 (f) Until the adoption of bylaws fixing the time and place 775-2 of regular meetings and the manner in which special meetings may be 775-3 called, meetings of the board shall be held at such times and 775-4 places as five of the directors may designate in writing. Five 775-5 directors constitute a quorum at any meeting. 775-6 (g) Except as otherwise provided in this chapter or in the 775-7 bylaws, all actions may be taken by the affirmative vote of a 775-8 majority of the directors present at any meeting, except that an 775-9 affirmative vote of at least five directors is required to 775-10 authorize or ratify a contract that involves an amount greater than 775-11 $10,000 or that is to run for a period longer than one year, the 775-12 issuance of bonds, notes, or other evidence of indebtedness, or 775-13 amendment of the bylaws. 775-14 Sec. 276.008. OFFICERS; EMPLOYEES. (a) The board shall 775-15 select a secretary, who shall keep true and complete records of all 775-16 proceedings of the board. Until the appointment of a secretary, or 775-17 in the event of the secretary's absence or inability to act, a 775-18 secretary pro tempore shall be selected by the board. 775-19 (b) The board shall select a chair. The chair is the chief 775-20 executive officer of the authority. 775-21 (c) The board shall select a treasurer, who may also hold 775-22 the office of secretary. 775-23 (d) The officers have the powers and duties, hold office for 775-24 the term, and are subject to removal in the manner provided in the 775-25 bylaws. The board shall set the compensation of the officers. 775-26 (e) The board may appoint officers, agents, and employees, 776-1 may set their compensation and term of office and the method by 776-2 which they may be removed, and may delegate to them the power and 776-3 duties it determines appropriate. 776-4 Sec. 276.009. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The 776-5 funds of the authority may be disbursed only on checks, drafts, 776-6 orders, or other instruments signed by the persons authorized by 776-7 the bylaws or a resolution concurred in by not less than five 776-8 directors. 776-9 (b) The chair, the treasurer, and all other officers, 776-10 agents, and employees of the authority charged with the collection, 776-11 custody, or payment of any funds of the authority shall give bond 776-12 conditioned on the faithful performance of their duties and an 776-13 accounting for all funds and property of the authority coming under 776-14 their control. 776-15 (c) The bonds shall be in a form and amount and with a 776-16 surety (by a surety company authorized to do business in the state) 776-17 approved by the board. 776-18 (d) The premiums on the bonds shall be paid by the authority 776-19 and charged as an operating expense. The bonds shall be payable to 776-20 the board for the use and benefit of the authority. 776-21 Sec. 276.010. AUTHORITY OFFICE; RECORDS. (a) The general 776-22 offices of the authority shall be located by vote of a majority of 776-23 the board. The county in which the general offices are located 776-24 shall constitute the domicile of the authority. The general 776-25 offices shall be in the charge of the chair. 776-26 (b) The authority shall keep complete and accurate accounts 777-1 conforming to approved methods of bookkeeping. 777-2 (c) The accounts and all contracts, documents, and records 777-3 of the authority shall be kept at the principal office. The 777-4 accounts and contracts shall be open to public inspection at all 777-5 reasonable times. 777-6 (d) The board shall cause to be made and completed, within 777-7 90 days after the end of each calendar year, an audit of the books 777-8 of account and financial records of the authority for that calendar 777-9 year. The audit shall be made by an independent certified public 777-10 accountant or firm of certified public accountants. 777-11 (e) Copies of a written report of the audit, certified to by 777-12 the accountant or accountants, shall be placed and kept on file 777-13 with the comptroller, with the commission, and at the principal 777-14 office of the authority and shall be open to public inspection at 777-15 all reasonable times. 777-16 Sec. 276.011. CONFLICT OF INTEREST; PENALTY. A director, 777-17 officer, agent, or employee of the authority may not have an 777-18 interest, directly or indirectly, in any contract for the purchase 777-19 of any property or construction of any work by or for the 777-20 authority. If a director, officer, agent, or employee of the 777-21 authority is or becomes interested in a contract described by this 777-22 section, the person shall be guilty of a felony and on conviction 777-23 shall be subject to a fine in an amount not to exceed $10,000 or to 777-24 confinement in the state penitentiary for not less than one year or 777-25 more than 10 years, or both a fine and confinement. 777-26 Sec. 276.012. RATES AND CHARGES. (a) The board shall 778-1 establish and collect rates and other charges for the sale or use 778-2 of water, water connections, power, electric energy, or other 778-3 services sold, furnished, or supplied by the authority. The fees 778-4 and charges must be reasonable and nondiscriminatory and sufficient 778-5 to produce revenues adequate, in addition to funds received from 778-6 tax diversion, to: 778-7 (1) pay all expenses necessary to the operation and 778-8 maintenance of the properties and facilities of the authority; 778-9 (2) pay the interest on and principal of all bonds 778-10 issued under this chapter as the interest and principal become due 778-11 and payable; 778-12 (3) pay all sinking fund and reserve fund payments 778-13 agreed to be made with respect to bonds and payable out of 778-14 revenues, as the payments become due and payable; and 778-15 (4) fulfill the terms of any agreements made with the 778-16 holders of bonds or with any person in their behalf. 778-17 (b) Out of the revenues that may be received in excess of 778-18 those required for the purposes specified in Subsection (a), the 778-19 board may, in its discretion: 778-20 (1) establish a reasonable depreciation and emergency 778-21 fund; 778-22 (2) retire, by purchase and cancellation or 778-23 redemption, bonds issued under this chapter; or 778-24 (3) apply the excess revenues to any corporate 778-25 purpose. 778-26 (c) The rates and charges of the authority may not be in 779-1 excess of what may be necessary to fulfill the obligations imposed 779-2 on the authority by this chapter. Nothing in this section shall be 779-3 construed as depriving the state of its power to regulate and 779-4 control fees or charges to be collected for the use of water, water 779-5 connections, power, electric energy, or other service; provided, 779-6 however, that the state pledges to and agrees with the purchasers 779-7 and successive holders of the bonds issued under this chapter that 779-8 the state will not limit or alter the power vested in the authority 779-9 by this chapter to establish and collect the fees and charges as 779-10 will produce revenues sufficient to pay the items specified in 779-11 Subsection (a) or in any way impair the rights or remedies of the 779-12 holders of the bonds, or of any person in their behalf, until the 779-13 bonds, together with the interest on the bonds and on unpaid 779-14 installments of interest and all costs and expenses in connection 779-15 with any action or proceedings by or on behalf of the bondholders 779-16 and all other obligations of the authority in connection with the 779-17 bonds are fully met and discharged. 779-18 Sec. 276.013. PAYMENT OF DEBTS. Each indebtedness, 779-19 liability, or obligation of the authority for the payment of money, 779-20 however entered into or incurred and whether arising from contract, 779-21 implied contract, or otherwise, shall be payable solely: 779-22 (1) out of the revenues received by the authority with 779-23 respect to its properties, including funds received by reason of 779-24 diversion of taxes, subject to any prior lien on the revenues 779-25 conferred by any resolution previously adopted authorizing the 779-26 issuance of bonds as provided in this chapter; or 780-1 (2) if the board so determines, out of the proceeds of 780-2 sale by the authority of bonds payable solely from revenues. 780-3 Sec. 276.014. ISSUANCE OF BONDS. (a) The authority may 780-4 issue bonds as provided by this section for any corporate purpose, 780-5 not to exceed $6 million in aggregate principal amount. Any 780-6 additional amount of bonds must be authorized by an act of the 780-7 legislature. 780-8 (b) Bonds may be: 780-9 (1) sold for cash at public or private sale, at such 780-10 price or prices as the board determines, provided that the interest 780-11 cost of the money received for the bonds, computed to maturity in 780-12 accordance with standard bond tables in general use by banks and 780-13 insurance companies, shall not exceed six percent per year; or 780-14 (2) issued on such terms as the board determines in 780-15 exchange for property of any kind, real, personal or mixed, or any 780-16 interest in property, that the board determines necessary or 780-17 convenient for any corporate purpose; or 780-18 (3) issued in exchange for like principal amounts of 780-19 other obligations of the authority, matured or unmatured. 780-20 (c) The proceeds of sale of bonds shall be deposited in a 780-21 bank or banks or trust company or trust companies and shall be paid 780-22 out pursuant to such terms and conditions as may be agreed on 780-23 between the authority and the purchasers of the bonds. 780-24 (d) Bonds must be authorized by a resolution of the board 780-25 concurred in by at least five members. Bonds must bear such date 780-26 or dates; mature at such time or times; bear interest at such rate 781-1 or rates, not exceeding six percent per year, payable annually or 781-2 semiannually; be in such denominations; be in such form, either 781-3 coupon or registered; carry such registration privileges as to 781-4 principal only or as to both principal and interest and as to 781-5 exchange of coupon bonds for registered bonds, or vice versa, and 781-6 exchange of bonds of one denomination for bonds of other 781-7 denominations; be executed in such manner; and be payable at such 781-8 place or places within or outside the state, as the resolution 781-9 provides. 781-10 (e) A resolution authorizing bonds may contain provisions, 781-11 which shall be part of the contract between the authority and the 781-12 purchasers and successive holders of the bonds: 781-13 (1) reserving the right to redeem the bonds at the 781-14 time or times, in the amount and at the prices, not exceeding 105 781-15 percent of the principal amount of the bonds plus accrued interest, 781-16 as may be provided in the resolution; 781-17 (2) providing for the setting aside of sinking funds 781-18 or reserve funds and the regulation and disposition of the funds; 781-19 (3) pledging, to secure the payment of the principal 781-20 of and interest on the bonds and of the sinking fund or reserve 781-21 fund payments agreed to be made with respect to the bonds, all or 781-22 any part of the gross or net revenues received by the authority 781-23 with respect to the property, real, personal or mixed, to be 781-24 acquired or constructed with the bonds or the proceeds of the 781-25 bonds, or all or part of the gross or net revenues received by the 781-26 authority from any source; 782-1 (4) prescribing the purposes to which the bonds or any 782-2 bonds later issued, or the proceeds of the bonds, may be applied; 782-3 (5) agreeing to set and collect rates and charges 782-4 sufficient to produce revenues adequate to pay the items specified 782-5 in Section 276.012 (a) and prescribing the use and disposition of 782-6 all revenues; 782-7 (6) prescribing limitations on the issuance of 782-8 additional bonds and on the agreements that may be made with the 782-9 purchasers and successive holders of such bonds; 782-10 (7) relating to the construction, extension, 782-11 improvement, reconstruction, operation, maintenance, and repair of 782-12 the properties of the authority and the carrying of insurance, on 782-13 all or any part of the properties, covering loss or damage or loss 782-14 of use and occupancy resulting from specified risks; 782-15 (8) setting the procedure, if any, by which, if the 782-16 authority so desires, the terms of any contract with the holders of 782-17 the bonds may be amended or abrogated, the amount of bonds the 782-18 holders of which must consent to the amendment or abrogation, and 782-19 the manner in which such consent may be given; 782-20 (9) providing for the execution and delivery by the 782-21 authority to a bank or trust company authorized by law to accept 782-22 trusts, or to the United States or any officer or agency of the 782-23 United States, of indentures and agreements for the benefit of the 782-24 holders of the bonds setting forth all of the agreements authorized 782-25 by this chapter to be made with or for the benefit of the holders 782-26 of the bonds and other provisions as may be customary in indentures 783-1 or agreements; and 783-2 (10) making other provisions, not inconsistent with 783-3 the provisions of this chapter, as the board may approve. 783-4 Sec. 276.015. DEFAULT PROCEDURES. (a) A resolution 783-5 authorizing the issuance of bonds and any indenture or agreement 783-6 entered into pursuant to the resolution may include provisions 783-7 regarding a default on the: 783-8 (1) payment of the interest on any bonds as the 783-9 interest becomes due and payable; 783-10 (2) payment of the principal of any bonds as they 783-11 become due and payable, whether at maturity, by call for 783-12 redemption, or otherwise; or 783-13 (3) performance of an agreement made with the 783-14 purchasers or successive holders of any bonds. 783-15 (b) If a default described by Subsection (a) has occurred 783-16 and has continued for a period, if any, prescribed by the 783-17 resolution authorizing the issuance of the bonds, the trustee under 783-18 the indenture or indentures entered into with respect to the bonds 783-19 authorized by the resolution, or, if there is no indenture, a 783-20 trustee appointed in the manner provided in the resolution by the 783-21 holders of 25 percent in aggregate principal amount of the bonds 783-22 authorized by the resolution and then outstanding may, and on the 783-23 written request of the holders of 25 percent in aggregate principal 783-24 amount of the bonds authorized by the resolution and then 783-25 outstanding shall, in the trustee's own name but for the equal and 783-26 proportionate benefit of the holders of all the bonds, and with or 784-1 without having possession of the bonds: 784-2 (1) by mandamus or other suit, action, or proceeding 784-3 at law or in equity, enforce all rights of the holders of the 784-4 bonds; 784-5 (2) bring suit on the bonds or the appurtenant 784-6 coupons; 784-7 (3) by action or suit in equity, require the authority 784-8 to account as if it were the trustee of an express trust for the 784-9 bondholders; 784-10 (4) by action or suit in equity, enjoin any acts or 784-11 things which may be unlawful or in violation of the rights of the 784-12 holders of the bonds; or 784-13 (5) after such notice to the authority as the 784-14 resolution may provide, declare the principal of all of the bonds 784-15 due and payable, and if all defaults have been made good, then with 784-16 the written consent of the holders of 25 percent in aggregate 784-17 principal amount of the bonds then outstanding, annul the 784-18 declaration and its consequences; provided, however, that the 784-19 holders of more than a majority in principal amount of the bonds 784-20 authorized by the resolution and then outstanding shall, by written 784-21 instrument delivered to the trustee, have the right to direct and 784-22 control any and all action taken or to be taken by the trustee 784-23 under this section. 784-24 (c) A resolution, indenture, or agreement relating to bonds 784-25 may provide that in a suit, action, or proceeding under this 784-26 section, the trustee, whether or not all of the bonds have been 785-1 declared due and payable and with or without possession of any of 785-2 the bonds, shall be entitled as of right to the appointment of a 785-3 receiver who may enter and take possession of all or part of the 785-4 properties of the authority, operate and maintain the properties, 785-5 and set, collect, and receive rates and charges sufficient to 785-6 provide revenues adequate to pay the items set forth in Section 785-7 276.012(a) and the costs and disbursements of the suit, action, or 785-8 proceeding and apply such revenues in conformity with the 785-9 provisions of this chapter and the resolution authorizing the 785-10 bonds. 785-11 (d) In a suit, action, or proceeding by a trustee under this 785-12 section, the reasonable fees, counsel fees, and expenses of the 785-13 trustee and of the receiver or receivers, if any, shall constitute 785-14 taxable disbursements, and all costs and disbursements allowed by 785-15 the court shall be a first charge on any revenues pledged to secure 785-16 the payment of the bonds. 785-17 (e) Subject to the provisions of the constitution, the 785-18 courts of the county of domicile of the authority shall have 785-19 jurisdiction of a suit, action, or proceeding under this section by 785-20 a trustee on behalf of the bondholders and of all property involved 785-21 in the suit, action, or proceeding. 785-22 (f) In addition to the powers specifically provided by this 785-23 section, the trustee shall have all powers necessary or appropriate 785-24 for the exercise of the powers specific or incident to the general 785-25 representation of the bondholders in the enforcement of their 785-26 rights. 786-1 Sec. 276.016. BOND APPROVAL AND REGISTRATION. (a) Before 786-2 any bonds may be sold by the authority, a certified copy of the 786-3 proceedings for the issuance of the bonds, including the form of 786-4 the bonds, together with any other information that the attorney 786-5 general may require, shall be submitted to the attorney general, 786-6 and if the attorney general finds that the bonds have been issued 786-7 in accordance with law, the attorney general shall approve the 786-8 bonds and execute a certificate to that effect, which shall be 786-9 filed in the office of the comptroller and recorded in a record 786-10 kept for that purpose. The comptroller shall register the bonds if 786-11 the attorney general has filed with the comptroller the certificate 786-12 approving the bonds and the proceedings for the issuance of the 786-13 bonds as provided in this section. Bonds may not be issued until 786-14 the bonds have been registered by the comptroller. 786-15 (b) Bonds approved by the attorney general, registered by 786-16 the comptroller, and issued in accordance with the proceedings so 786-17 approved are valid and binding obligations of the authority and are 786-18 incontestable for any cause from and after the time of 786-19 registration. 786-20 Sec. 276.017. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued 786-21 by the authority under the provisions of this chapter are 786-22 negotiable instruments within the meaning of the laws of the state. 786-23 Sec. 276.018. ADDITIONAL POWERS RELATING TO CONTRACTS, 786-24 RULES, AND REGULATIONS. The authority may, without intending by 786-25 this provision to limit any powers granted to the authority by this 786-26 chapter, enter into and carry out contracts or establish or comply 787-1 with rules and regulations concerning labor and materials and other 787-2 related matters, in connection with any project, as the authority 787-3 considers desirable or as requested by the United States or any 787-4 corporation or agency created, designated, or established by the 787-5 United States that may assist in the financing of the project. 787-6 Sec. 276.019. REDEMPTION OF BONDS. The authority may, out 787-7 of funds available for the purpose, purchase bonds issued by it at 787-8 a price not exceeding the redemption price applicable at the time 787-9 of the purchase, or if the bonds are not redeemable, at a price not 787-10 exceeding the principal amount of the bonds plus accrued interest. 787-11 All bonds so purchased shall be canceled and no bonds shall ever be 787-12 issued in lieu of the canceled bonds. 787-13 Sec. 276.020. DISPOSITION OF PROPERTY. (a) Nothing in this 787-14 chapter shall be construed as authorizing the authority, and the 787-15 authority may not be authorized, to mortgage or otherwise encumber 787-16 any of its property of any kind, real, personal, or mixed, or any 787-17 interest in property, or to acquire any property or interest 787-18 subject to a mortgage or conditional sale, provided that this 787-19 section shall not be construed as preventing the pledging of the 787-20 revenues of the authority as authorized by this chapter. 787-21 (b) Nothing in this chapter shall be construed as 787-22 authorizing the sale, lease, or other disposition of any property 787-23 or interest by the authority or by any receiver of any of its 787-24 properties or through any court proceeding or otherwise; provided, 787-25 however, that the authority may sell for cash any property or 787-26 interest with an aggregate value not exceeding $50,000 in any one 788-1 year if the board, by the affirmative vote of six of its members, 788-2 has determined that the property or interest is not necessary or 788-3 convenient to the business of the authority and has approved the 788-4 terms of the sale. Except by sale as expressly authorized in this 788-5 section, no such property or interest shall ever come into the 788-6 ownership or control, directly or indirectly, of any person, firm, 788-7 or corporation other than a public authority created under the laws 788-8 of the state. 788-9 (c) All property of the authority shall be at all times 788-10 exempted from forced sale, and nothing in this chapter shall be 788-11 construed to authorize the sale of any of the property of the 788-12 authority under any judgment rendered in any suit, and such sales 788-13 are prohibited. 788-14 Sec. 276.021. PUBLIC ACCESS. (a) The authority may not 788-15 prevent the free public use of its lands for recreation purposes 788-16 and for hunting and fishing except: 788-17 (1) at points where, in the opinion of the board, the 788-18 use would interfere with the proper conduct of the business of the 788-19 authority; or 788-20 (2) in connection with the enforcement of sanitary 788-21 regulations or the protection of the public's health. 788-22 (b) Public rights-of-way traversing the areas adjacent to 788-23 the areas to be flooded by the impounded waters shall remain open 788-24 as a way of free public passage to and from the lakes created, and 788-25 no charge shall ever be made to the public for the right to engage 788-26 in hunting, fishing, boating, or swimming on the lakes. 789-1 (c) If any citizen of the state notifies the attorney 789-2 general that this section has not been complied with, the attorney 789-3 general shall institute the proper legal proceedings to require the 789-4 authority or its successor to comply with the provisions of this 789-5 section. 789-6 (d) If any of the land owned by the authority bordering the 789-7 lakes to be created under the authority of this chapter is sold by 789-8 the authority, the authority shall retain in each tract a strip 80 789-9 feet wide abutting the high-water line of the lake for the purpose 789-10 of passage and use by the public for public sports and amusements; 789-11 provided, however, that this subsection shall not apply to any 789-12 sales of land by the authority to any state or federal agency to be 789-13 used for game or fish sanctuaries or preserves or for propagation 789-14 purposes. 789-15 Sec. 276.022. BONDS EXEMPT FROM TAXATION. Bonds and 789-16 interest on bonds issued under the provisions of this chapter are 789-17 exempt from taxation, except inheritance taxes, by the state or by 789-18 any municipal corporation, county, or other political subdivision 789-19 or taxing district of the state. 789-20 Sec. 276.023. SOURCE OF AUTHORITY. This chapter, without 789-21 reference to other statutory provisions of the state, constitutes 789-22 full authority for the authorization and issuance of bonds under 789-23 this chapter, and no other act or law with regard to the 789-24 authorization or issuance of obligations or the deposit of the 789-25 proceeds of such obligations or in any way impeding or restricting 789-26 the carrying out of the acts authorized by this chapter to be done 790-1 shall be construed as applying to any proceedings taken or acts 790-2 done under this chapter. 790-3 Sec. 276.024. CONSTRUCTION. This chapter and all of its 790-4 terms and provisions shall be liberally construed to effectuate the 790-5 purposes set forth in this chapter. 790-6 CHAPTER 277. UPPER GUADALUPE RIVER AUTHORITY 790-7 Sec. 277.001. CREATION. (a) A conservation and reclamation 790-8 district to be known as the "Upper Guadalupe River Authority" is 790-9 created. The authority is a governmental agency and a body politic 790-10 and corporate. 790-11 (b) The authority is created under and is essential to 790-12 accomplish the purposes of Section 59, Article XVI, Texas 790-13 Constitution. 790-14 Sec. 277.002. DEFINITIONS. In this chapter: 790-15 (1) "Authority" means the Upper Guadalupe River 790-16 Authority. 790-17 (2) "Board" means the board of directors of the 790-18 authority. 790-19 (3) "Director" means a member of the board. 790-20 Sec. 277.003. TERRITORY. The authority comprises all of the 790-21 territory contained within and has the same boundaries as Kerr 790-22 County. 790-23 Sec. 277.004. FINDING OF BENEFIT. The legislature finds and 790-24 determines that all of the land and other property included within 790-25 the area and boundaries of the authority will benefit from the 790-26 works and projects that are to be accomplished by the authority 791-1 pursuant to the powers conferred by the provisions of Section 59, 791-2 Article XVI, Texas Constitution, and that the authority is created 791-3 to serve a public use and benefit. 791-4 Sec. 277.005. GRANTS AND CONTRACTS. The authority may 791-5 accept grants from or contract with the United States government or 791-6 the state, any agency, arm, branch, department, or political 791-7 subdivision of the United States or the state, any municipality, 791-8 city, or town, or any public or private corporation, firm, or 791-9 person in connection with the exercise of or in aid of any right, 791-10 power, privilege, function, or authority of the authority. 791-11 Sec. 277.006. POWERS APPLICABLE TO WATER CONTROL AND 791-12 IMPROVEMENT DISTRICTS. The authority shall exercise all of the 791-13 rights, powers, privileges, authority, and duties conferred and 791-14 imposed by the general laws of the state applicable to water 791-15 control and improvement districts created under authority of 791-16 Section 59, Article XVI, Texas Constitution. To the extent that 791-17 general laws applicable to water control and improvement districts 791-18 may be in conflict or inconsistent with the provisions of this 791-19 chapter, the provisions of this chapter prevail. All general laws 791-20 of the state applicable to water control and improvement districts 791-21 created under authority of Section 59, Article XVI, Texas 791-22 Constitution, are adopted and incorporated by reference with the 791-23 same effect as if incorporated in full in this chapter. 791-24 Sec. 277.007. NO HEARING ON EXCLUSION OF LAND OR PLAN OF 791-25 TAXATION REQUIRED. (a) The board is not required to call or hold 791-26 a hearing on the exclusions of land or other property from the 792-1 authority. 792-2 (b) The board is not required to call or hold a hearing on 792-3 the adoption of a plan of taxation. The ad valorem plan of 792-4 taxation shall be used by the authority. 792-5 Sec. 277.008. BOARD OF DIRECTORS. (a) All powers of the 792-6 authority shall be exercised by a board of nine directors. Each 792-7 director serves for a term of office as provided by this section 792-8 and until a successor is appointed and has qualified. A person may 792-9 not be appointed a director unless the person is 21 years of age or 792-10 older and is a resident of Kerr County and owns land in the county. 792-11 Each director shall subscribe the oath of office and shall give 792-12 bond in the amount of $5,000 for the faithful performance of the 792-13 person's duties as director. The cost of the bond shall be borne 792-14 by the authority. A majority of directors constitutes a quorum. 792-15 (b) The directors are appointed by the governor. The 792-16 directors are appointed for staggered six-year terms, with three 792-17 directors' terms expiring on February 1 of each odd-numbered year. 792-18 The governor shall fill a vacancy on the board by appointment for 792-19 the unexpired term. 792-20 (c) The board shall elect from among its members a 792-21 president, a vice president, and a secretary and other officers the 792-22 board considers necessary. The president is the chief executive 792-23 officer of the authority and the presiding officer of the board and 792-24 has the same right to vote as any other director. The vice 792-25 president shall perform all duties and exercise all power conferred 792-26 by this chapter or general law on the president when the president 793-1 is absent or fails or declines to act. The secretary shall keep 793-2 and sign the minutes of the meetings of the board. In the absence 793-3 of the secretary from any board meeting, a secretary pro tempore 793-4 shall be named for that meeting, who may exercise all the duties 793-5 and powers of the secretary for the meeting, sign the minutes of 793-6 the meeting, and attest all orders passed or other action taken at 793-7 the meeting. The secretary is the custodian of all minutes and 793-8 records of the authority. 793-9 (d) The board shall appoint all necessary engineers, 793-10 attorneys, auditors, and other employees. 793-11 (e) The board shall adopt a seal for the authority. 793-12 Sec. 277.009. CONSTRUCTION BONDS. Before issuing any 793-13 construction bonds, the authority shall submit plans and 793-14 specifications for the project to the commission for approval in 793-15 the manner required by Section 49.181, and the authority's project 793-16 and improvements during the course of construction shall be subject 793-17 to inspection in the manner provided by Section 49.182. 793-18 Sec. 277.010. AD VALOREM TAX; ELECTION. (a) The authority 793-19 may levy an ad valorem tax not to exceed 50 cents per $100 793-20 valuation if: 793-21 (1) a petition signed by five percent of the resident 793-22 qualified property taxpaying voters in the county is presented to 793-23 the board requesting that an election be called to determine 793-24 whether: 793-25 (A) a specified rate of tax may be levied by the 793-26 authority; or 794-1 (B) a tax not to exceed a specified rate may be 794-2 levied by the authority; 794-3 (2) the board calls an election to submit the question 794-4 to the resident qualified voters; and 794-5 (3) a majority of the qualified voters participating 794-6 in the election vote in favor of the tax. 794-7 (b) The election shall be called, conducted, and held, the 794-8 returns of the election shall be made, and all notices of the 794-9 election shall be given in the same mode and manner as required by 794-10 general law for bond elections in water control and improvement 794-11 districts. 794-12 (c) If a majority of the qualified voters participating in 794-13 the election vote in favor of the tax, the board may levy the 794-14 amount, or an amount not to exceed the amount, of tax specified in 794-15 the petition and order calling the election, provided the amount of 794-16 the tax does not exceed 50 cents per $100 valuation. The tax 794-17 authorized to be levied may be used to accomplish the purposes for 794-18 which the authority is created or may be pledged, without the 794-19 necessity of another election, to the payment of tax bonds for such 794-20 purposes in accordance with the general law governing water control 794-21 and improvement districts. The tax bonds must mature within 40 794-22 years of their date. Other limitations of this chapter do not 794-23 apply to the amount of bonds to be issued by the authority provided 794-24 the bonds and the interest on the bonds may be paid within the 794-25 limits of the tax authorized. The bonds shall be issued in 794-26 conformity with the law governing water control and improvement 795-1 districts except as modified by the provisions of this chapter. 795-2 (d) If taxes are levied, the values of the property in the 795-3 authority shall be the same values that are shown on the county tax 795-4 rolls, and the provisions of the general law with reference to 795-5 water control and improvement districts shall govern the 795-6 appointment, qualification, and duties of the authority's tax 795-7 assessor. 795-8 Sec. 277.011. BOND ELECTIONS. (a) If the constitution or 795-9 this chapter requires a bond proposition to be approved by a 795-10 majority of the qualified voters voting at an election called for 795-11 that purpose before bonds or other obligations may be issued or 795-12 taxes levied, the election must be called and held and notice must 795-13 be given as required by this section. 795-14 (b) An election to authorize the issuance of bonds is not 795-15 required if: 795-16 (1) the bonds to be issued are payable from revenues 795-17 of a system or facilities of the authority and the board finds and 795-18 determines that the proceeds of the bonds proposed to be issued 795-19 will provide less than $2 million for the purpose of acquiring land 795-20 or acquiring or constructing the facilities, excluding the cost of 795-21 issuance, interest during construction, and any initial deposit 795-22 from those proceeds to a reserve fund; and 795-23 (2) the proceeds of the bonds will be used to: 795-24 (A) acquire land or an interest in land and to 795-25 construct or acquire new facilities in the nature of a new project 795-26 or undertaking for the authority, subject to the limitation that 796-1 with respect to a new project or undertaking for the authority only 796-2 one series of bonds may be issued to provide for the project unless 796-3 additional bonds are approved at an election by a majority of the 796-4 participating qualified voters; 796-5 (B) provide funds for repairs, expansion, and 796-6 improvement of the existing facilities of the authority; or 796-7 (C) provide for the completion of construction 796-8 of a project for which the authority has previously issued bonds 796-9 approved at an election. 796-10 (c) Except as provided by Subsection (b), bonds may not be 796-11 issued by the authority unless an election is held in the authority 796-12 to approve issuance of the bonds and the issuance of the bonds is 796-13 approved by a majority of the qualified voters voting at the 796-14 election. The board must issue the order calling the election not 796-15 less than 15 or more than 90 days before the date the election is 796-16 to be held. 796-17 (d) Notice of an election under Subsection (c) must be given 796-18 by posting a copy of the notice of election in at least three 796-19 public places within the authority at least 14 days before the date 796-20 of the election and by publishing the notice at least once a week 796-21 for two consecutive weeks in a newspaper with general circulation 796-22 in the authority, the date of the first publication to be at least 796-23 14 days before the election. 796-24 Sec. 277.012. APPLICABILITY OF OTHER LAW. (a) The 796-25 authority is a conservation and reclamation district under Section 796-26 59, Article XVI, Texas Constitution, and shall conserve and develop 797-1 the natural resources of this state within the authority. The 797-2 authority may exercise the powers necessary to accomplish each of 797-3 the rights and duties specified in Section 59, Article XVI, Texas 797-4 Constitution, as provided by Chapters 49 and 54. The authority may 797-5 construct or acquire those projects that the board determines are 797-6 needed and incident to or related to the performance of those 797-7 rights and duties. 797-8 (b) The authority is a district under Chapter 30, and that 797-9 chapter applies to the authority except to the extent that Chapter 797-10 30 conflicts with this chapter, in which case this chapter 797-11 prevails. All cities, public agencies, and other political 797-12 subdivisions are authorized to contract with the authority in any 797-13 manner authorized by Chapter 30, provided that any city may 797-14 contract with the authority in the manner authorized by Section 797-15 30.030(c). The authority and all cities, public agencies, and 797-16 other political subdivisions contracting with the authority have 797-17 all of the rights and authority relating to the control, storage, 797-18 preservation, transmission, treatment, and disposition of storm 797-19 water, floodwater, water of rivers and streams, and groundwater 797-20 that are granted, permitted, and authorized by Chapter 30. 797-21 Sec. 277.013. POWER TO BORROW MONEY. (a) The authority may 797-22 borrow money for any corporate purpose or combination of corporate 797-23 purposes pursuant to the methods and procedures specifically 797-24 provided by this chapter or by general law. 797-25 (b) The board, without the necessity of an election, may 797-26 borrow money on negotiable notes of the authority to be paid solely 798-1 from the revenues of the authority derived from the ownership of 798-2 all or a designated part of the authority's works, plant, 798-3 improvements, facilities, equipment, or water rights, after 798-4 deduction of the reasonable cost of maintaining and operating the 798-5 facilities. 798-6 (c) A note issued under this section may not exceed $55 798-7 million in the aggregate. 798-8 (d) The notes may mature over a term of not more than 40 798-9 years and bear interest at a rate of not more than 10 percent. 798-10 (e) The notes may be first or subordinate lien notes within 798-11 the discretion of the board, but no obligation may be a charge on 798-12 the property of the authority or on the taxes levied or collected 798-13 by the authority, but shall be a charge on the revenues pledged for 798-14 the payment of the obligation. No part of the obligation may be 798-15 paid from the taxes levied or collected by the authority. 798-16 (f) Section 49.153 does not apply to any revenue note issued 798-17 by the authority. 798-18 Sec. 277.014. VALIDITY OF BONDS. If bonds or refunding 798-19 bonds have been approved by the attorney general, registered by the 798-20 comptroller, and issued by the authority, the bonds or refunding 798-21 bonds are negotiable, legal, valid, and binding obligations of the 798-22 authority and are incontestable for any cause. 798-23 Sec. 277.015. EMINENT DOMAIN. If the authority, in the 798-24 exercise of the power of eminent domain or police power or any 798-25 other power, requires the relocation, raising, lowering, rerouting, 798-26 change in grade, or alteration in construction of any railroad, 799-1 electric transmission, telegraph, or telephone lines, conduits, 799-2 poles, properties, or facilities, or pipelines, all such 799-3 relocation, raising, lowering, rerouting, changes in grade, or 799-4 alteration of construction shall be accomplished at the sole 799-5 expense of the authority. In this section, "sole expense" means 799-6 the actual cost of relocation, raising, lowering, rerouting, change 799-7 in grade, or alteration of construction in providing comparable 799-8 replacement without enhancement of the facilities, after deducting 799-9 the net salvage value derived from the old facility. 799-10 Sec. 277.016. CERTAIN MUNICIPAL ANNEXATION PROVISIONS NOT 799-11 APPLICABLE. The authority is created notwithstanding any 799-12 conflicting provisions of Section 212.003, Local Government Code, 799-13 and Chapters 42 and 43, Local Government Code, and those provisions 799-14 have no application to the authority. 799-15 Sec. 277.017. AUTHORITY DEPOSITORY. The board shall select 799-16 a bank or trust company in the state to act as depository of the 799-17 proceeds of the bonds or revenues derived from the operation of the 799-18 facilities of the authority. The depository shall furnish 799-19 indemnity bonds or pledge securities or meet other requirements as 799-20 determined by the board. The authority may select one or more 799-21 depositories. 799-22 Sec. 277.018. ADDITIONAL SPECIFIC POWERS. (a) The 799-23 authority has the right, power, privilege, function, and authority 799-24 to control, develop, store, and preserve the waters and floodwaters 799-25 of the Upper Guadalupe River and its tributaries within or outside 799-26 the boundaries of the authority for any beneficial or useful 800-1 purpose; to purchase, acquire, build, construct, improve, extend, 800-2 reconstruct, repair, and maintain all dams, structures, waterworks 800-3 systems, sanitary or storm sewer or drainage or irrigation systems, 800-4 buildings, waterways, pipelines, distribution systems, ditches, 800-5 lakes, ponds, reservoirs, plants, and recreational facilities for 800-6 public use and any other facilities or equipment in aid of such 800-7 purposes; to purchase or acquire the necessary sites, easements, 800-8 rights-of-way, land, or other properties necessary for those 800-9 purposes; and to do anything, by any practical means, that may be 800-10 necessary to the exercise of all of the rights, powers, privileges, 800-11 functions, and authority of the authority. The authority may sell 800-12 water and other services. 800-13 (b) As a necessary aid to the conservation, control, 800-14 preservation, and distribution of the waters and floodwaters of the 800-15 Upper Guadalupe River and its tributaries for beneficial use, the 800-16 authority may construct, own, and operate sewage gathering, 800-17 transmission, and disposal services, may charge for those services, 800-18 and may make contracts with municipalities and others in reference 800-19 to those services. 800-20 Sec. 277.019. ISSUANCE OF BONDS. (a) In addition to the 800-21 powers and purposes authorized by other statutory provisions 800-22 pertaining to water control and improvement districts created under 800-23 Section 59, Article XVI, Texas Constitution, the authority may 800-24 issue any kind of bonds or refunding bonds for any purposes 800-25 provided by this chapter and may provide and make payment for the 800-26 bonds and for necessary expenses in connection with the bonds. 801-1 (b) Bonds or refunding bonds may be sold at a price and 801-2 under terms determined by the board. Bonds and refunding bonds may 801-3 be sold at a private or public sale but may not be sold for less 801-4 than 95 percent of their face value. The authority may exchange 801-5 bonds or refunding bonds for property or facilities acquired by 801-6 purchase or in payment of the contract price of work done or 801-7 materials furnished or services furnished for the use and benefit 801-8 of the authority, but such exchange or payment may not be on a 801-9 basis of less than 95 percent of the face value of the bonds or 801-10 refunding bonds exchanged or used for payment as provided by this 801-11 subsection. 801-12 Sec. 277.020. DISSOLUTION OF AUTHORITY NOT REQUIRED. The 801-13 provisions of Sections 51.781-51.783 or any other statutory 801-14 provisions pertaining to the calling of a hearing for the 801-15 determination of the dissolution of a district where a bond 801-16 election has failed shall not apply to the authority, and the 801-17 authority shall continue to exist and have full power to function 801-18 and operate regardless of the outcome of a bond election. On the 801-19 failure of a bond election, a subsequent bond election may be 801-20 called after the expiration of 30 days from the date of the bond 801-21 election that failed. 801-22 Sec. 277.021. NOTICE OF ELECTIONS. Notice of all elections 801-23 may be signed by either the president or the secretary of the 801-24 authority. 801-25 Sec. 277.022. ELECTION RETURNS. The returns of all 801-26 elections may be canvassed by the board at any time within seven 802-1 days after an election or as soon thereafter as reasonably 802-2 practicable. 802-3 Sec. 277.023. EXEMPTION FROM TAXATION. The accomplishment 802-4 of the purposes of this chapter will benefit the people of this 802-5 state and improve their properties and industries, and the 802-6 authority in carrying out the purposes of this chapter will be 802-7 performing an essential public function under Section 59, Article 802-8 XVI, Texas Constitution, and shall not be required to pay any tax 802-9 or assessment on a project or any part of a project under this 802-10 chapter or on any purchases made by the authority, and the bonds 802-11 issued under this chapter and the transfer of and income from the 802-12 bonds, including the profits made on the sale of the bonds, shall 802-13 at all times be free from taxation within the state. 802-14 Sec. 277.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 802-15 DEPOSITS. Bonds and refunding bonds of the authority are legal, 802-16 eligible, and authorized investments for banks, savings and loan 802-17 associations, insurance companies, fiduciaries, trustees, and 802-18 guardians and for the sinking funds of cities, towns, villages, 802-19 counties, school districts, or other political corporations or 802-20 subdivisions of the state. The bonds and refunding bonds are 802-21 eligible to secure deposits of all public funds of cities, towns, 802-22 villages, counties, school districts, or other political 802-23 corporations or subdivisions of the state, and the bonds are lawful 802-24 and sufficient security for such deposits to the extent of their 802-25 face value when accompanied by all unmatured coupons. 803-1 CHAPTER 278. UPPER NECHES RIVER MUNICIPAL WATER AUTHORITY 803-2 Sec. 278.001. CREATION. (a) A conservation and reclamation 803-3 district to be known as the "Upper Neches River Municipal Water 803-4 Authority" is created. The authority is a governmental agency and 803-5 body politic and corporate. 803-6 (b) The authority is created under and is essential to 803-7 accomplish the purposes of Section 59, Article XVI, Texas 803-8 Constitution. 803-9 (c) The authority may exercise all rights, powers, 803-10 privileges, and functions as provided in this chapter and as may be 803-11 contemplated and implied by Section 59, Article XVI, Texas 803-12 Constitution, as well as those conferred by the general laws of the 803-13 state relating to water control and improvement districts except 803-14 where such laws are in conflict with the provisions of this 803-15 chapter. 803-16 Sec. 278.002. DEFINITIONS. In this chapter: 803-17 (1) "Authority" means the Upper Neches River Municipal 803-18 Water Authority. 803-19 (2) "Board" means the board of directors of the 803-20 authority. 803-21 (3) "Director" means a member of the board. 803-22 Sec. 278.003. TERRITORY. The area of the authority 803-23 comprises all territory contained within the corporate limits of 803-24 the city of Palestine, Anderson County, and no defect or 803-25 irregularity in the boundaries of that city or in any of the 803-26 proceedings relating to the annexation of territory to that city 804-1 shall ever affect the authority or any of its rights, powers, 804-2 privileges, or functions, it being affirmatively found and 804-3 determined by the legislature that all of the territory within the 804-4 limits of the city of Palestine, Anderson County, as well as all 804-5 other territory which later may be brought into the authority as 804-6 provided by Sections 278.007 and 278.008 shall comprise the 804-7 authority and that all of such territory will benefit from the 804-8 improvements and facilities to be constructed, acquired, or 804-9 otherwise furnished under this chapter. 804-10 Sec. 278.004. BOARD OF DIRECTORS. (a) The powers of the 804-11 authority shall be exercised by a board of directors. The 804-12 directors shall be appointed by the governor with the advice and 804-13 consent of the senate. 804-14 (b) Directors are appointed for staggered terms of six 804-15 years, with one-third of the directors' terms expiring on February 804-16 1 of each odd-numbered year. Directors serve until their 804-17 successors are appointed and have qualified. Any vacancy on the 804-18 board is filled by the governor as provided by this section. 804-19 (c) Three directors shall be appointed to the board from the 804-20 city of Palestine, Anderson County. 804-21 (d) If the city of Tyler, Smith County, becomes a part of 804-22 the authority by annexation as provided by Sections 278.007 or 804-23 278.008, a number of directors shall be appointed to the board from 804-24 that city equal to the combined number of directors appointed from 804-25 all other cities then members of the authority, and if the 804-26 membership of the board is increased after the entry of the city of 805-1 Tyler by the addition of directors from any other area, the number 805-2 of directors from the city of Tyler shall be increased so that the 805-3 number shall always equal one-half of the entire membership of the 805-4 board. 805-5 (e) If the city of Athens, Henderson County, becomes a part 805-6 of the authority by annexation as provided by Sections 278.007 or 805-7 278.008, three directors shall be appointed to the board from that 805-8 city. 805-9 (f) The additional directors to which the city of Tyler and 805-10 the city of Athens are entitled shall be appointed by the governor 805-11 with the advice and consent of the senate, with their respective 805-12 initial terms staggered and of such duration as will permit the 805-13 appointment of their successors at the same time as successors of 805-14 the other members then comprising the board, with one-third of the 805-15 number of directors to which each city is entitled to be appointed 805-16 from that city for each term. The governor, with the advice and 805-17 consent of the senate, shall appoint all successors to the 805-18 directors. 805-19 Sec. 278.005. QUALIFICATIONS OF BOARD MEMBERS. (a) To be 805-20 qualified for appointment to the board, a person must be a 805-21 qualified voter and property-owning taxpayer in the city from which 805-22 the person is appointed. 805-23 (b) A member of the governing body or an employee of a city 805-24 from which the person is appointed is not eligible to serve on the 805-25 board. 805-26 (c) Each director shall subscribe the constitutional oath of 806-1 office and give bond for the faithful performance of the director's 806-2 duties in the amount of $5,000. 806-3 Sec. 278.006. BOARD: ACTION; DUTIES; QUORUM; COMPENSATION; 806-4 EXPENSES. (a) The board shall perform official actions by 806-5 resolution. Two-thirds of the members of the board constitutes a 806-6 quorum for the transaction of any and all business of the 806-7 authority. A majority vote of those present shall be sufficient in 806-8 all official actions including final passage and enactment of all 806-9 resolutions. 806-10 (b) The board shall hold regular meetings at least once 806-11 every three months. The date of the meeting is to be established 806-12 in the authority's bylaws or by resolution of the board. 806-13 (c) The president or any two members of the board may call 806-14 special meetings as may be necessary in the administration of the 806-15 business of the authority; provided, however, that at least five 806-16 days before the date of the meeting, the secretary shall mail 806-17 notice of the meeting to the address that each director has on file 806-18 with the secretary. Notice of special meetings may be waived in 806-19 writing by any director. 806-20 (d) Each director is entitled to receive fees of office and 806-21 reimbursement of expenses as provided by Chapter 49. 806-22 (e) The board shall elect from among its members a president 806-23 of the authority. The president is the chief executive officer of 806-24 the authority and shall preside at the meetings of the board and 806-25 perform all other functions incident to the office. 806-26 (f) The board shall elect from among its members a vice 807-1 president. The vice president shall act as president in case of 807-2 the inability, absence, or failure of the president to act. 807-3 (g) The board shall elect a secretary, who may or may not be 807-4 chosen from among the members of the board. The secretary shall be 807-5 charged with the duty of seeing that all books and records of the 807-6 authority are properly kept. 807-7 Sec. 278.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other 807-8 territory may be annexed to the authority as provided in this 807-9 section and Section 278.008. 807-10 (b) A petition for annexation must: 807-11 (1) be signed by 50 or a majority of the qualified 807-12 voters of the territory to be annexed who own taxable property in 807-13 the territory to be annexed and have duly rendered the property for 807-14 taxation to the city or county; 807-15 (2) be filed with the board; and 807-16 (3) describe the territory to be annexed by metes and 807-17 bounds or by other appropriate description, unless the territory is 807-18 the same as that of a city or town, in which event it shall be 807-19 sufficient to state that the territory to be annexed is the same as 807-20 that contained within the city or town. 807-21 (c) If the board finds that the petition is signed by the 807-22 required number of qualified persons and otherwise complies with 807-23 Subsection (b), that the annexation would be to the interest of the 807-24 territory to be annexed and the authority, and that the authority 807-25 will be able to render service to the territory to be annexed, the 807-26 board shall call an election in the territory to be annexed for the 808-1 purpose of submitting the proposition of whether the territory 808-2 shall be annexed to the authority; provided, however, that if 808-3 either the city of Tyler, Smith County, or the city of Athens, 808-4 Henderson County, files a petition for annexation to the authority 808-5 in the manner provided in this section, the petition shall be 808-6 granted and the city filing the petition shall be entitled to 808-7 annexation, subject to the other provisions of this section. 808-8 (d) Because railroad right-of-way, transmission lines, and 808-9 other property of electric, telephone, telegraph, and gas utilities 808-10 that are not situated within the defined limits of an incorporated 808-11 city or town will not benefit from the improvements, works, and 808-12 facilities that the authority is authorized to construct, railroad 808-13 right-of-way, transmission lines, or other property of electric, 808-14 telephone, telegraph, or gas utilities may not be annexed to the 808-15 authority unless the right-of-way, transmission lines, or other 808-16 property of electric, telephone, telegraph, and gas utilities is 808-17 contained within the limits of an incorporated city or town annexed 808-18 to the authority. 808-19 (e) Notice of the election, stating the date and places for 808-20 holding the election, the proposition to be voted on, and the 808-21 conditions under which the territory may be annexed, or making 808-22 reference to the resolution of the board for that purpose, must be 808-23 published once a week for two consecutive weeks in a newspaper 808-24 published in the territory to be annexed and designated by the 808-25 board. The first publication must appear at least 14 days before 808-26 the date of the election. If no newspaper is published in the 809-1 territory to be annexed, it shall be sufficient if notices are 809-2 posted at three public places in the territory to be annexed and 809-3 published at the times provided by this subsection in a newspaper 809-4 having general circulation in the territory. 809-5 (f) Only qualified electors who reside in the territory to 809-6 be annexed shall be qualified to vote in the election on the 809-7 proposition for annexation. As in the case of other elections to 809-8 be held under this chapter, the returns of the annexation election 809-9 shall be made to the board. 809-10 (g) The board shall canvass the returns of the election and 809-11 adopt a resolution declaring the results. If the resolution shows 809-12 that a majority of the votes cast are in favor of annexation, the 809-13 board shall enter an order annexing the territory to the authority, 809-14 and the annexation shall be incontestable except in the manner and 809-15 within the time for contesting elections under the Election Code. 809-16 A certified copy of the order shall be recorded in the deed records 809-17 of the county in which the annexed territory is situated. 809-18 Sec. 278.008. ANNEXATION OF TERRITORY AFTER BONDS OR TAXES 809-19 APPROVED. (a) If, before calling an election for the annexation 809-20 of territory, the authority to levy ad valorem taxes has been voted 809-21 in the authority, if bonds or other obligations supported wholly or 809-22 in part by ad valorem taxes have been issued and are outstanding, 809-23 or if bonds or other obligations so supported have been voted but 809-24 remain unsold, the procedure for annexation and the results of the 809-25 procedure shall be as provided by this section. 809-26 (b) On receipt of the petition for annexation as provided by 810-1 Sections 278.007(b) and (c), the board shall by appropriate 810-2 resolution or order call an election to be held in the territory to 810-3 be annexed and shall issue and publish notices as provided by 810-4 Section 278.007(e). 810-5 (c) The persons eligible to vote at the election shall be 810-6 qualified electors who reside in the territory to be annexed. 810-7 (d) In calling the election in the territory to be annexed, 810-8 the board shall submit as one joint proposition to be voted on in 810-9 the territory the question of whether the territory shall be 810-10 annexed and whether it shall assume its pro rata share of any ad 810-11 valorem taxes previously voted, of any bonds or other obligations 810-12 of the authority supported in whole or in part by ad valorem taxes 810-13 then outstanding and unpaid, and of any bonds or other obligations 810-14 so supported that have been voted but that remain unissued and 810-15 unsold. 810-16 (e) If the joint proposition submitted under Subsection (d) 810-17 receives a majority of the votes cast in the territory to be 810-18 annexed, the board shall enter an order or resolution annexing the 810-19 territory and declaring the assumption by the territory annexed of 810-20 ad valorem taxes and tax-supported bonds issued or authorized, and 810-21 the annexation and assumption shall be incontestable except in the 810-22 manner and within the time for contesting elections under the 810-23 Election Code. 810-24 Sec. 278.009. ASSUMPTION OF DEBT; TAXES. (a) After 810-25 territory is added to the authority, the board may call an election 810-26 over the entire authority for the purpose of determining whether 811-1 the entire authority as enlarged shall assume the taxes and 811-2 tax-supported obligations then outstanding and in force, and, in 811-3 the case of bonds, those voted but not yet sold, and whether ad 811-4 valorem taxes shall be levied on all taxable property within the 811-5 authority as enlarged for the payment of the obligations and bonds, 811-6 unless that proposition was favorably voted along with the 811-7 annexation election and becomes lawfully binding on the territory 811-8 annexed. 811-9 (b) Notice of the elections provided for in this section 811-10 must be given and the elections must be held in the same manner as 811-11 elections for the issuance of bonds as provided by this chapter. 811-12 Sec. 278.010. GENERAL MANAGER; EMPLOYEES. (a) The board 811-13 may employ and determine the compensation of a general manager for 811-14 the authority and may delegate to the general manager full power 811-15 and authority to manage and operate the affairs of the authority, 811-16 subject only to orders of the board. The board may also employ and 811-17 determine the compensation of such other employees as it considers 811-18 appropriate to the proper conduct of the authority's affairs, 811-19 including engineers, technical experts, attorneys, and assistants 811-20 to the authority's officers including the general manager. The 811-21 board may remove any employee. 811-22 (b) The general manager is the official treasurer of the 811-23 authority and has charge of its funds. The general manager shall 811-24 see that the funds are safely kept and shall account for the funds 811-25 to the board. The general manager shall give bond in an amount 811-26 required by the board, but in no event shall the amount be less 812-1 than $50,000. 812-2 Sec. 278.011. DISBURSEMENT OF FUNDS. The funds of the 812-3 authority shall be disbursed only on checks, drafts, orders, or 812-4 other instruments signed by the persons authorized by the bylaws 812-5 and resolutions of the board. 812-6 Sec. 278.012. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO 812-7 AUTHORITY. In consideration of the fact that the authority may be 812-8 incurring obligations and making expenditures, before funds are 812-9 available to pay such obligations and expenditures, for the purpose 812-10 of providing funds needed to procure necessary engineering surveys 812-11 and the collection and compilation of data relating to general 812-12 conditions influencing the determination of the character and 812-13 extent of the improvements, works, and facilities essential to the 812-14 accomplishment of the purposes of the authority, any city or town 812-15 situated within the authority may expend funds or use its services 812-16 for such engineering surveys and data. Any city or town situated 812-17 within the authority may appropriate money from its general funds 812-18 or such other funds as may be legally available for the purpose and 812-19 donate and contribute money to the authority, and the authority may 812-20 contract with any such city or town to repay money advanced as a 812-21 loan to the authority. 812-22 Sec. 278.013. AUTHORITY OFFICE; RECORDS. A regular office 812-23 shall be established and maintained for the conduct of the 812-24 authority's business at a location to be determined by the board. 812-25 The board shall keep a true and full account of the proceedings of 812-26 its meetings and shall maintain its records in a secure manner. 813-1 Sec. 278.014. ACCOUNT RECORDS; AUDITS. (a) The board shall 813-2 keep complete and accurate accounts conforming to approved methods 813-3 of bookkeeping. The accounts and all contracts, documents, and 813-4 records of the authority shall be kept at the authority's principal 813-5 office and shall be open to public inspection at all reasonable 813-6 times. 813-7 (b) Within 90 days after the end of each calendar year, the 813-8 books of account and financial records of the authority for the 813-9 preceding calendar year shall be audited by an independent 813-10 certified public accountant. Copies of the written report of the 813-11 audit, certified to by the accountant, shall be placed and kept on 813-12 file at the office of the authority and shall be open to public 813-13 inspection at all reasonable times. 813-14 Sec. 278.015. AUTHORITY DEPOSITORY; METHOD OF SELECTION. 813-15 (a) The board shall designate one or more banks within the 813-16 authority to serve as depository for the funds of the authority. 813-17 All funds of the authority shall be deposited in the depository 813-18 bank or banks except funds pledged to pay bonds, which shall be 813-19 deposited with the trustee bank or paying agent named in the bond 813-20 proceedings and to the extent provided for in those proceedings. 813-21 To the extent that funds in the depository bank and the trustee 813-22 bank are not insured by the Federal Deposit Insurance Corporation 813-23 the funds shall be secured in the manner provided by law for the 813-24 security of county funds. 813-25 (b) Before designating a depository bank or banks, the board 813-26 shall issue a notice stating the time and place the board will meet 814-1 to designate a depository bank or banks and inviting the banks in 814-2 the authority to submit applications to be designated depositories. 814-3 The notice must be published one time in a newspaper or newspapers 814-4 published in the authority as specified by the board at least 10 814-5 days before the date of the board meeting. 814-6 (c) At the time mentioned in the notice, the board shall 814-7 consider the applications and the management and condition of the 814-8 banks filing them and shall designate as depositories the bank or 814-9 banks which offer the most favorable terms and conditions for the 814-10 handling of the funds of the authority and which the board finds 814-11 have proper management and are in condition to warrant handling the 814-12 funds of the authority. 814-13 (d) If no acceptable applications are received by the time 814-14 stated in the notice, the board shall designate some bank or banks 814-15 within or outside the authority on such terms and conditions as it 814-16 finds advantageous to the authority. 814-17 (e) The term of service for depositories shall be prescribed 814-18 by the board. 814-19 Sec. 278.016. POWERS AND DUTIES. (a) In addition to the 814-20 powers granted water control and improvement districts by general 814-21 law and in addition to the powers otherwise provided by this 814-22 chapter, the authority may exercise the powers, rights, privileges, 814-23 and functions provided by this section. 814-24 (b) The authority may store, control, conserve, protect, 814-25 distribute, and utilize storm waters and floodwaters and 814-26 unappropriated flow waters of the Neches River and such portions of 815-1 its tributaries as are located within Smith, Cherokee, Anderson, 815-2 and Henderson counties, except that portion of the drainage area of 815-3 Flat Creek in Henderson County which lies west of presently 815-4 designated Farm-to-Market Road 607 leading from LaRue through 815-5 Leagueville to Brownsboro, by construction of a dam or dams across 815-6 that river and its tributaries within the counties or as otherwise 815-7 provided by the applicable provisions of this code in order that 815-8 the escape of any such waters, without first obtaining from them 815-9 the maximum of public benefit, may be prevented in so far as it is 815-10 feasible and practicable within the means of the authority, except 815-11 that the authority may not build a dam or dams outside the 815-12 boundaries of Smith, Cherokee, Anderson, and Henderson counties. 815-13 (c) The authority may acquire and develop underground 815-14 sources of water in such instances and to such extent as the board 815-15 may consider necessary and feasible in the conduct of its business 815-16 and affairs, but only within Smith, Cherokee, Anderson, and 815-17 Henderson counties. The authority may acquire by purchase, 815-18 contract, lease, gift, or any other lawful manner and may develop 815-19 all facilities within Smith, Cherokee, Anderson, and Henderson 815-20 counties considered necessary or useful for the purpose of 815-21 diverting, storing, controlling, conserving, protecting, 815-22 distributing, processing, and utilizing surface water or 815-23 groundwater and the transportation of such water for municipal, 815-24 domestic, industrial, and other useful purposes permitted by law. 815-25 The authority may not acquire any water rights in or exercise any 815-26 control over the water in that portion of the drainage area of Flat 816-1 Creek in Henderson County that lies west of Farm-to-Market Road 607 816-2 leading from LaRue through Leagueville to Brownsboro. 816-3 (d) The authority may acquire by purchase, construction, 816-4 lease, or gift or in any other lawful manner and may maintain, use, 816-5 and operate property of any kind, real, personal, or mixed, or any 816-6 interest in property, within and outside the boundaries of the 816-7 authority necessary to the exercise of the powers, rights, 816-8 privileges, and functions possessed by the authority under this 816-9 chapter. 816-10 (e) The authority may acquire by condemnation to the extent 816-11 and in the manner set forth and permitted by general law, including 816-12 Chapter 21, Property Code, any property or right in property 816-13 necessary to be acquired by the authority with respect to any 816-14 project that it is lawfully empowered to provide and that has been 816-15 approved by the commission or a predecessor agency under the 816-16 provisions of general law including the provisions of Sections 816-17 49.181 and 49.182; provided, however, that the authority may not 816-18 condemn any property or right in property that is owned by any 816-19 other political subdivision, city, or town of this state; and 816-20 provided further, that the authority may not condemn any property 816-21 lying outside of Smith, Cherokee, Anderson, and Henderson counties 816-22 except for the purpose of constructing necessary transportation 816-23 facilities to a purchaser of water from the authority. 816-24 (f) The authority may sell or otherwise dispose of excess 816-25 property of any kind, real, personal, or mixed, or any interest in 816-26 property not necessary to the operation of the authority; provided, 817-1 however, that in those cases in which the board considers the value 817-2 of such property to be in excess of $1,000, the property shall be 817-3 sold only after advertisement and competitive bidding. 817-4 (g) The authority may require the relocation of roads and 817-5 highways in the manner and to the extent permitted by general law 817-6 to districts organized under Section 59, Article XVI, Texas 817-7 Constitution. The actual cost of relocation of any roads, 817-8 highways, or railroads or electrical highlines, pipelines, 817-9 telephone and telegraph lines, or other utility lines in 817-10 furtherance of the purposes of this chapter and any damage incurred 817-11 in changing and adjusting the lines and grades of railroads or 817-12 highways or roads shall be paid by the authority. 817-13 (h) The authority may make contracts and execute all 817-14 instruments necessary or convenient to the exercise of the powers, 817-15 rights, privileges, and functions of the authority. 817-16 (i) The authority may make or cause to be made surveys and 817-17 engineering investigations for the information of the authority to 817-18 facilitate the accomplishment of the purposes for which it is 817-19 created. 817-20 (j) The authority may borrow money for its corporate 817-21 purposes and may borrow money and accept grants, gratuities, or 817-22 other support from the United States or the state or from any 817-23 corporation or agency created or designated by the United States or 817-24 the state and, in connection with any such loan, grant, or other 817-25 support, may enter into such arrangement with the United States or 817-26 the state, or such corporation or agency of either, as the 818-1 authority may consider advisable. 818-2 (k) The authority may make and issue negotiable bonds for 818-3 funds borrowed in the manner and to the extent provided by this 818-4 chapter and may contract in any manner required by law with regard 818-5 to loans, grants, or other support received from the United States 818-6 or the state or from any corporation or agency of either. 818-7 (l) The authority may make such contracts in the issuance of 818-8 bonds as are considered necessary to ensure the marketability of 818-9 the bonds. 818-10 (m) The authority may sue or be sued in its corporate 818-11 name. 818-12 (n) The authority may adopt, use, and alter a corporate 818-13 seal. 818-14 (o) The authority may make bylaws for the management and 818-15 regulation of its affairs. 818-16 (p) The authority may set and collect charges and rates for 818-17 water services furnished by it and may impose penalties for failure 818-18 to pay such charges and rates when due. 818-19 (q) The authority may cooperate with and enter into 818-20 contracts with cities, persons, firms, corporations, and public 818-21 agencies for the purpose of supplying and selling them water for 818-22 municipal, domestic, industrial, and other useful purposes 818-23 permitted by law; provided, however, that cities and areas 818-24 constituting the authority shall be accorded priority in the 818-25 allocation of the authority's available water, and the board shall 818-26 prescribe rules to effectuate this provision. A contract described 819-1 by this section may be on such terms and for such time as the 819-2 parties may agree, and it may provide that it shall continue in 819-3 effect until the authority's bonds specified in the contract and 819-4 refunding bonds issued in lieu of the bonds are fully paid. If the 819-5 authority pledges the proceeds of water contracts with its 819-6 constituent cities to the payment of any bonds supported in whole 819-7 or in part by revenues and issued by the authority to finance the 819-8 construction of a water supply or transportation facility for such 819-9 cities, the authority shall not be obligated to construct or 819-10 otherwise provide the facility to any constituent city that, for 819-11 any reason, fails to enter into such contract. If the authority 819-12 enters into a contract with the United States government or any of 819-13 its agencies for a source of water supply or for the furnishing of 819-14 any facilities necessary or useful to the authority in carrying out 819-15 its purposes, the contract entered into under authority of this 819-16 subsection may provide that the contract shall continue until the 819-17 authority has fully discharged all obligations incurred by it under 819-18 the terms of its contract with the United States government or its 819-19 agencies. 819-20 (r) The authority may contract with any city, district, or 819-21 governmental agency, including the United States government or any 819-22 of its agencies, for the rental or leasing of or for the operation 819-23 of their water production, water supply, and water filtration or 819-24 purification and water supply facilities for such consideration as 819-25 may be mutually agreeable. 819-26 (s) The authority may purchase water or a water supply from 820-1 any person, firm, corporation, or public agency or from the United 820-2 States government or any of its agencies. 820-3 (t) The authority may operate and maintain, with the consent 820-4 of the governing body of any city or town located within the 820-5 authority, any works, plants, or facilities of the city or town 820-6 deemed necessary to the accomplishment of the purposes for which 820-7 the authority is created. 820-8 (u) The authority may levy, assess, and collect ad valorem 820-9 taxes to provide funds necessary to construct or acquire, maintain, 820-10 and operate improvements, works, plants, and facilities deemed 820-11 essential and beneficial to the authority on a favorable majority 820-12 vote of the qualified electors voting at an election held for that 820-13 purpose within the authority and may also, when so authorized, 820-14 levy, assess, and collect taxes to provide funds adequate to defray 820-15 the cost of the maintenance, operation, and administration of the 820-16 authority. Elections for the voting of such taxes shall be ordered 820-17 by the board and shall be held and conducted as provided by this 820-18 chapter for elections for the issuance of bonds and the levy of 820-19 taxes in support of the bonds. When so levied such taxes, as well 820-20 as taxes authorized by this chapter to be levied in support of bond 820-21 indebtedness, constitute a lien on the property against which such 820-22 taxes are levied and assessed, and limitations shall not bar the 820-23 collection and enforcement thereof. 820-24 (v) The authority may do any and all acts or things 820-25 necessary to the exercise of the powers, rights, privileges, or 820-26 functions conferred on the authority or permitted by any other law. 821-1 Sec. 278.017. CONSTRUCTION OR PURCHASE CONTRACTS. A 821-2 contract requiring an expenditure of more than $25,000 shall not be 821-3 made until after publication of a notice to bidders once each week 821-4 for two weeks before the awarding of the contract. The notice is 821-5 sufficient if it states the time and place when and where the bids 821-6 will be opened and the general nature of the work to be done or the 821-7 material, equipment, or supplies to be purchased and states when 821-8 and on what terms copies of the plans and specifications may be 821-9 obtained. The publication shall be in a newspaper published in the 821-10 authority as designated by the board. 821-11 Sec. 278.018. BOND ISSUANCE. (a) For the purpose of 821-12 providing a source or sources of water supply for its cities or 821-13 towns and other users of water for municipal, domestic, and other 821-14 useful purposes permitted by law and for the purpose of carrying 821-15 out any other power or authority conferred by this chapter, the 821-16 authority may issue and sell negotiable bonds to be payable from 821-17 the net operating income and revenues of the authority received 821-18 from any or all of its properties, as the board may determine, or 821-19 from ad valorem taxes, or from both such revenues and taxes as are 821-20 pledged by the board; provided, however, that without limiting in 821-21 any way the amount of revenue-supported bonds that may be 821-22 authorized, issued, and sold by the authority for any authorized 821-23 purpose, the amount of bonds that the authority may issue and sell 821-24 supported in whole or in part by ad valorem taxes shall never 821-25 exceed the total principal amount of $6.5 million. All or any 821-26 portion of the limited amount may be issued and sold by the 822-1 authority for the purpose of providing funds with which to acquire 822-2 and construct the authority's Blackburn Crossing Project; to wit, a 822-3 dam and reservoir at or near the point on the Neches River commonly 822-4 known and referred to in the area as "Blackburn Crossing." On 822-5 completion of the ultimate acquisition and construction of the 822-6 Blackburn Crossing Project in accordance with plans and 822-7 specifications of the authority's engineers approved by the board, 822-8 including provisions for all property of every kind and character, 822-9 real, personal, or mixed, or any interest in property, necessary or 822-10 convenient for the full development of that project and including 822-11 any additions or modifications approved by the board and the 822-12 commission, no further bonds supported in whole or in part by ad 822-13 valorem taxes shall be issued or sold for any purpose. The 822-14 authority is empowered to acquire and construct the Blackburn 822-15 Crossing Project in phases or stages and all decisions in this 822-16 respect rest with the board. Within the limitations provided by 822-17 this section, the board is authorized to submit to elections and to 822-18 issue and sell all or any part of the bonds required to accomplish 822-19 the ultimate acquisition and construction of the Blackburn Crossing 822-20 Project at any stage of construction or development. 822-21 (b) Bonds must be authorized by resolution of the board, 822-22 bear the date or dates, mature at the time or times, and bear 822-23 interest at the rate or rates as the board determines. The bonds 822-24 shall be signed by the president and attested by the secretary and 822-25 shall have the seal of the authority impressed on the bonds. Bonds 822-26 may be sold at prices and under terms determined by the board to be 823-1 the most advantageous and reasonably obtainable; provided, however, 823-2 that the interest cost to the authority, calculated by use of 823-3 standard bond interest tables currently in use by insurance 823-4 companies and investment houses, may not exceed six percent per 823-5 year. Within the discretion of the board, bonds may be made 823-6 callable and subject to redemption prior to their maturity at the 823-7 times and prices as may be prescribed in the authorizing 823-8 resolution. Interest on all bonds shall be payable annually or 823-9 semiannually within the discretion of the board. Bonds may be 823-10 issued in one or more than one series and from time to time as 823-11 required in carrying out the purposes of this chapter. The bonds 823-12 must be in the form, either coupon or registered, must carry the 823-13 registration privileges as to principal only or as to both 823-14 principal and interest and as to exchange of coupon bonds for 823-15 registered bonds, or vice versa, and exchange of bonds of one 823-16 denomination for bonds of other denominations, and must be payable 823-17 at the place or places within or outside of this state as the board 823-18 determines and prescribes in the resolution authorizing the bonds. 823-19 (c) Bonds may be secured by a pledge of all or part of the 823-20 net revenues of the authority, of the net revenues of one or more 823-21 contracts made before or after the bonds are issued, or of other 823-22 revenues in the manner specified by resolution of the board. A 823-23 pledge may reserve the right, under conditions specified in the 823-24 pledge, to issue additional bonds that will be on a parity with or 823-25 subordinate to the bonds being issued. In this section, "net 823-26 revenues" means the gross revenues of the authority less the amount 824-1 necessary to pay the cost of maintaining and operating the 824-2 authority and its properties. 824-3 (d) If bonds are issued payable wholly or partially from ad 824-4 valorem taxes, the board shall levy a tax sufficient to pay the 824-5 bonds and the interest on the bonds as the bonds and interest 824-6 become due, but the rate of the tax for any year may be set after 824-7 giving consideration to the money received from the pledged 824-8 revenues available for the payment of principal and interest to the 824-9 extent and in the manner permitted by the resolution authorizing 824-10 the issuance of the bonds. 824-11 (e) If bonds or any other contract payable from revenues are 824-12 issued or entered into, the board shall set by contract, with all 824-13 cities, persons, firms, corporations, or public agencies that 824-14 contract with the board for a water supply or water facilities, 824-15 rates or compensation for water sold and services furnished by the 824-16 authority sufficient to pay the expenses of operating and 824-17 maintaining the authority and its facilities and to pay all such 824-18 obligations incurred by the authority as they mature, including 824-19 reserve and other funds as may be provided for the bonds or other 824-20 contracts under the terms of the bonds or contracts and as may be 824-21 provided in the resolution of the board pertaining to the bonds or 824-22 contracts. 824-23 (f) From the proceeds of the sale of bonds, the authority 824-24 may set aside an amount for the payment of interest expected to 824-25 accrue during construction and a reserve interest and sinking fund, 824-26 which provisions shall be made in the resolution authorizing the 825-1 bonds. Proceeds from the sale of bonds may also be used for the 825-2 payment of all expenses necessarily incurred in accomplishing the 825-3 purposes for which the authority is created, including expenses of 825-4 issuing and selling the bonds. Pending the use of bond proceeds 825-5 for the purpose for which the bonds were issued, the board may 825-6 invest the proceeds in obligations of the United States government. 825-7 (g) In the event of a default in the payment of principal of 825-8 or interest on bonds payable wholly or partially from revenues of 825-9 the authority, any court of competent jurisdiction in this state 825-10 may, on petition of the holders of 25 percent of the outstanding 825-11 bonds of the issue in default, appoint a receiver with authority to 825-12 collect and receive all income of the authority except taxes, to 825-13 employ and discharge agents and employees of the authority, to take 825-14 charge of the authority's funds on hand (except funds received from 825-15 taxes, unless commingled), and to manage the proprietary affairs of 825-16 the authority without consent or hindrance by the board. The 825-17 receiver may also be authorized to sell or make contracts for the 825-18 sale of water or to renew the contracts with the approval of the 825-19 court appointing the receiver. 825-20 (h) Bonds issued by the authority under this chapter are 825-21 negotiable instruments under the laws of this state. 825-22 (i) Before bonds are sold by the authority, a certified copy 825-23 of the proceedings for the issuance of the bonds, including the 825-24 form of the bonds, together with any other information that the 825-25 attorney general may require, shall be submitted to the attorney 825-26 general, and if the attorney general finds that the bonds have been 826-1 issued in accordance with the law, the attorney general shall 826-2 approve the bonds and execute a certificate of approval, which 826-3 shall be filed in the office of the comptroller and be recorded in 826-4 a record kept for that purpose. No bonds shall be issued until the 826-5 bonds have been registered by the comptroller, who shall register 826-6 the bonds if the attorney general has filed with the comptroller 826-7 the certificate approving the bonds and the proceedings for the 826-8 issuance of the bonds as provided in this section. If the bonds or 826-9 the proceedings pertaining to the bonds recite that the bonds are 826-10 secured by a pledge of the proceeds of a contract previously made 826-11 between the authority and a city, district, or other user, a copy 826-12 of the contract and proceedings of the contracting parties shall be 826-13 submitted to the attorney general with the bond record, and if the 826-14 bonds have been duly authorized and the contract has been made in 826-15 compliance with law, the attorney general shall approve the bonds 826-16 and contract, and the bonds shall then be registered by the 826-17 comptroller. When approved as provided by this subsection, the 826-18 bonds and the contract are valid and binding and are incontestable 826-19 for any cause. If the authority has issued bonds, including 826-20 interim or temporary bonds, or has contracted with the United 826-21 States government or with the state, or with any corporation or 826-22 agency of either, in connection with the financing of its works or 826-23 facilities, the authority may validate the bonds or contract by 826-24 suit in the manner and with the same effect as provided by Sections 826-25 51.423-51.431. 826-26 (j) Pending the issuance of definitive bonds, the authority 827-1 may issue and deliver interim or temporary bonds. The interim or 827-2 temporary bonds issued may be redeemed with the proceeds of the 827-3 definitive bonds, or the definitive bonds may be issued and 827-4 delivered in exchange for and in substitution of the interim or 827-5 temporary bonds. After the exchange and substitution, the 827-6 authority shall file proper certificates with the comptroller as to 827-7 the exchange, substitution, and cancellation. The certificates 827-8 shall be recorded by the comptroller. 827-9 Sec. 278.019. REFUNDING BONDS. (a) The board may issue 827-10 refunding bonds for the purpose of refunding any outstanding bonds 827-11 authorized by this chapter and interest on the bonds without the 827-12 necessity of an election. Refunding bonds may be issued to refund 827-13 more than one series of outstanding bonds, and in the case of bonds 827-14 secured in whole or in part by net revenues, the authority may 827-15 combine the pledges for the outstanding bonds for the security of 827-16 the refunding bonds and may secure the refunding bonds by other or 827-17 additional revenues. 827-18 (b) The provisions of this chapter with reference to the 827-19 issuance of other bonds and their approval by the attorney general 827-20 and the rights and remedies of the holders shall be applicable to 827-21 refunding bonds. Refunding bonds shall be registered by the 827-22 comptroller on surrender and cancellation of the bonds to be 827-23 refunded, but in lieu of that procedure, the resolution authorizing 827-24 the issuance of the refunding bonds may provide that the bonds 827-25 shall be sold and the proceeds of the sale deposited in the bank 827-26 where the original bonds are payable, in which case the refunding 828-1 bonds may be issued in an amount sufficient to pay the interest on 828-2 the original bonds to their option date or maturity date, and the 828-3 comptroller shall register the refunding bonds without concurrent 828-4 surrender and cancellation of the original bonds. 828-5 Sec. 278.020. TRUST INDENTURE FOR BONDS. (a) Bonds, 828-6 including refunding bonds, authorized by this chapter that are not 828-7 payable wholly from ad valorem taxes may be additionally secured by 828-8 a trust indenture under which the trustee may be a bank with trust 828-9 powers located either within or outside the state. The trust 828-10 indenture or mortgage may include provisions for a lien on all or 828-11 any part of the physical properties of the authority, and 828-12 franchises, easements, water rights and appropriation permits, 828-13 leases, contracts, and all rights appurtenant to the properties, 828-14 vesting in the trustee power to sell the properties for payment of 828-15 the indebtedness, power to operate the properties, and all other 828-16 powers and authority for the further security of the bonds. 828-17 (b) The trust indenture, regardless of the existence of a 828-18 deed of trust lien, may contain any provisions prescribed by the 828-19 board for the security of the bonds and the preservation of the 828-20 trust estate, including provision for amendment or modification of 828-21 the indenture and the issuance of bonds to replace lost or 828-22 mutilated bonds secured by the indenture. 828-23 (c) A purchaser under a sale under a deed of trust lien, 828-24 where one is given, shall be the owner of the properties, 828-25 facilities, and rights purchased and shall have the right to 828-26 maintain and operate the properties, facilities, and rights during 829-1 the period prescribed by the trust indenture. 829-2 (d) The authority may not issue bonds secured by a deed of 829-3 trust or mortgage on any properties previously acquired unless the 829-4 proposition for the issuance of the bonds is authorized by election 829-5 in the manner provided in this chapter for the authorization of 829-6 bonds secured in whole or in part by ad valorem taxes. 829-7 Sec. 278.021. BOND ELECTIONS. (a) Bonds payable wholly 829-8 from the authority's net revenues or from the proceeds of any water 829-9 contract or by any means other than ad valorem taxes may be issued 829-10 pursuant to a resolution of the board without the necessity of a 829-11 hearing or election. 829-12 (b) Bonds payable wholly or partially from ad valorem taxes, 829-13 except refunding bonds, shall not be issued unless authorized by an 829-14 election at which only the qualified voters who reside in the 829-15 authority shall be qualified to vote and a majority of the votes 829-16 cast at the election is in favor of the issuance of the bonds. 829-17 (c) Bond elections may be called by the board without a 829-18 petition. The resolution calling the election shall specify the 829-19 time and places of holding the election, the purpose for which the 829-20 bonds are to be issued, the maximum amount, maximum maturity, and 829-21 maximum interest rate of the bonds, the form of the ballot, and the 829-22 presiding judge for each voting place. The presiding judge serving 829-23 at each voting place shall appoint the necessary assistant judges 829-24 and clerks for holding the election. Notice of the election must 829-25 be given by publishing a substantial copy of the resolution calling 829-26 the election in a newspaper or newspapers of general circulation in 830-1 each city contained in the authority once each week for three 830-2 consecutive weeks. The first publication must be at least 21 days 830-3 before the date of the election. 830-4 (d) The returns of the bond election must be made to and 830-5 canvassed by the board. 830-6 (e) The Election Code applies to bond elections held under 830-7 this section except as otherwise provided by this chapter. 830-8 Sec. 278.022. EXCLUSION OF LAND OR OTHER PROPERTY NOT 830-9 REQUIRED. The provisions of Subchapter J, Chapter 49, or other 830-10 general laws relating to the exclusion of lands or other property 830-11 from a water control and improvement district shall not be 830-12 applicable to the authority. 830-13 Sec. 278.023. CONTRACTS WITH UNITED STATES OR ITS AGENCIES; 830-14 ELECTIONS. (a) The authority may contract with the United States 830-15 government or any of its agencies under the federal reclamation 830-16 laws for the construction, operation, and maintenance of any work 830-17 or facility by which water may be supplied and distributed to the 830-18 authority or under any act of congress providing or permitting the 830-19 contract and shall have all the rights, powers, privileges, and 830-20 authority granted water improvement districts and water control and 830-21 improvement districts under the general laws of the state with 830-22 regard to such contracts. Any contract entered into shall reserve 830-23 to the authority all water rights that it may obtain under permits 830-24 granted by the commission and shall provide that title to all 830-25 facilities constructed under the terms of the contract shall pass 830-26 to the authority or its designee or designees on payment to the 831-1 United States government of all obligations incurred in connection 831-2 with the project. 831-3 (b) If a proposed contract between the authority and the 831-4 United States government or any of its agencies would obligate the 831-5 authority to make payments wholly or partially from ad valorem 831-6 taxes, the contract may not be entered into unless authorized by an 831-7 election at which only the qualified voters who reside in the 831-8 authority shall be qualified to vote and a majority of the votes 831-9 cast at the election is in favor of the execution of the contract. 831-10 All procedures prescribed in Section 278.021 relating to the voting 831-11 of bonds supported in whole or in part by ad valorem taxes apply to 831-12 the voting of contracts under this section. 831-13 (c) If the authority enters into a contract with the United 831-14 States government or any of its agencies as provided by this 831-15 section, no subsequent alteration in the organization of the 831-16 authority shall be effected and no proceedings for the exclusion of 831-17 any area of the authority shall be undertaken under the provisions 831-18 of any law until the alteration or exclusion has received the 831-19 approval of the United States government or its contracting agency. 831-20 Sec. 278.024. AUTHORITY TO ACQUIRE AND OWN WATER PERMITS. 831-21 The authority may acquire and own water appropriation permits 831-22 directly from the commission. On application filed in compliance 831-23 with the provisions of Chapter 11 relating to acquisition of water 831-24 appropriation permits the commission may grant to the authority 831-25 permits to take unappropriated water of the Neches River in Texas 831-26 and its tributaries. 832-1 Sec. 278.025. BONDS AS INVESTMENTS AND SECURITY FOR 832-2 DEPOSITS. (a) All bonds of the authority are legal and authorized 832-3 investments for banks, savings banks, trust companies, building and 832-4 loan associations, savings and loan associations, insurance 832-5 companies, fiduciaries, trustees, and guardians, for the sinking 832-6 funds of cities, towns, villages, counties, school districts, or 832-7 other political subdivisions of the state, and for public funds of 832-8 the state or its agencies including the state permanent school 832-9 fund. 832-10 (b) Authority bonds are eligible to secure the deposit of 832-11 public funds of the state and of public funds of cities, towns, 832-12 villages, counties, school districts, or other political 832-13 subdivisions or corporations of the state. The bonds are lawful 832-14 and sufficient security for the deposits to the extent of the value 832-15 of the bonds if the bonds are accompanied by all unmatured coupons. 832-16 Sec. 278.026. BONDS EXEMPT FROM TAXATION. The 832-17 accomplishment of the purposes of this chapter is for the benefit 832-18 of the people of this state and for the improvement of their 832-19 properties and industry, and the authority, in carrying out the 832-20 purposes of this chapter, will be performing an essential public 832-21 function under the constitution and shall not be required to pay 832-22 any tax or assessment on a project or any part of a project under 832-23 this chapter. The bonds or other obligations issued under this 832-24 chapter and the transfer of and income from the bonds, including 832-25 the profits on the sale of the bonds, shall at all times be free 832-26 from taxation by the state or by any municipal corporation, county, 833-1 or other political subdivision or taxing district of the state. 833-2 Sec. 278.027. TAXATION. Before the issuance of bonds or the 833-3 execution of a contract payable wholly or partially from ad valorem 833-4 taxes, the board shall appoint a tax assessor and collector and a 833-5 board of equalization and shall cause taxes to be assessed, 833-6 valuations to be equalized, and tax rolls to be prepared. The 833-7 board may also appoint deputies to assist the tax assessor and 833-8 collector in such manner and for such period as the board may 833-9 order. Where applicable and not in conflict with this section, the 833-10 general laws relating to water control and improvement districts 833-11 with reference to tax assessors and collectors, boards of 833-12 equalization, tax rolls, and the levy and collection of taxes and 833-13 delinquent taxes shall be applicable to the authority, except that 833-14 the board of equalization, to be appointed each year by the board, 833-15 shall consist of one member residing in each city contained in the 833-16 authority. All taxes to be levied, assessed, and collected by the 833-17 authority shall be on an ad valorem basis, and all provisions of 833-18 the general laws pertaining to the levy, assessment, and collection 833-19 of ad valorem taxes by water control and improvement districts, 833-20 including the enforcement of those provisions and the processes for 833-21 the collection of delinquent taxes provided in the provisions, 833-22 shall be applicable to the authority. 833-23 Sec. 278.028. ADOPTION OF RULES AND REGULATIONS. The board 833-24 may adopt and promulgate all reasonable rules and regulations to 833-25 secure, maintain, and preserve the sanitary condition of all water 833-26 in and to flow into any reservoir owned by the authority, or which 834-1 it may control by contract or otherwise, to prevent the waste or 834-2 the unauthorized use of water, and to regulate residence, hunting, 834-3 fishing, boating, and camping, and all recreational and business 834-4 privileges, along or around any reservoir or any body of land or 834-5 easement owned or controlled by the authority. 834-6 Sec. 278.029. RECREATIONAL FACILITIES. The authority may 834-7 establish or otherwise provide for public parks and recreation 834-8 facilities and may acquire land adjacent to any reservoir in which 834-9 the authority owns water storage rights to provide for the parks or 834-10 facilities; provided, however, that no money received from taxation 834-11 or from bonds payable wholly or partially from taxation shall be 834-12 used to provide the parks or facilities. The authority may 834-13 contract for the lease of lands acquired by the authority for 834-14 recreation or concession purposes under terms determined by the 834-15 board. 834-16 Sec. 278.030. VOTING PLACES. For all elections conducted 834-17 under the provisions of this chapter, the voting places shall be 834-18 determined by the board for each election; provided, however, that 834-19 one or more voting places shall be designated for each constituent 834-20 city or town and for each separate area not located within a city 834-21 or town comprising a part of the authority. 834-22 Sec. 278.031. TERRITORY DETACHED FROM OTHER DISTRICT OR 834-23 AUTHORITY. The authority created by this chapter shall be in 834-24 addition to all districts or authorities into which the state has 834-25 been previously divided, and the territory of the authority 834-26 existing at any time under the provisions of this chapter is 835-1 declared to be detached from all other districts or authorities 835-2 established under Section 59, Article XVI, Texas Constitution. The 835-3 authority has the power and right to coordinate its plans with any 835-4 other conservation, reclamation, or other district previously 835-5 created with powers provided by Section 59, Article XVI, Texas 835-6 Constitution, and shall have full authority, power, and right to 835-7 enter into joint undertakings for the purposes for which the 835-8 districts are created; provided, however, that all such acts must 835-9 be approved by a majority of the board of directors of each 835-10 district or authority involved. 835-11 Sec. 278.032. BONDS OF OFFICERS AND EMPLOYEES. All bonds 835-12 required to be given by officers and employees of the authority 835-13 shall be executed by a surety company authorized to do business in 835-14 the state. The authority may pay the premiums on the bonds. 835-15 Sec. 278.033. GENERAL LAWS APPLICABLE WHERE NOT IN CONFLICT. 835-16 (a) All powers conferred by the general laws of this state 835-17 pertaining to water control and improvement districts shall be 835-18 applicable to the authority to the extent that those powers are not 835-19 in conflict with the provisions of this chapter. 835-20 (b) Nothing in this chapter shall be construed to violate 835-21 any provision of the federal or state constitutions, and all acts 835-22 done under this chapter shall be done in conformity with those 835-23 constitutions, whether or not expressly provided in this chapter. 835-24 If any procedure under this chapter is held by any court to violate 835-25 either constitution, the authority may by resolution provide an 835-26 alternative procedure conforming to the constitutions. 836-1 Sec. 278.034. BOND NOT REQUIRED. The authority shall not be 836-2 required to give a cost or supersedeas bond or to pay a cost 836-3 deposit on any appeal from the judgment of any court of this state. 836-4 Sec. 278.035. AUTHORITY DECLARED ESSENTIAL. The legislature 836-5 declares that the enactment of this chapter is in fulfillment of a 836-6 duty conferred on the legislature by Section 59, Article XVI, Texas 836-7 Constitution, which provides that the legislature is empowered to 836-8 pass laws appropriate in the preservation and conservation of the 836-9 natural resources of the state; that the authority created in this 836-10 chapter is essential to the accomplishment of the purposes of 836-11 Section 59, Article XVI, Texas Constitution; and that this chapter 836-12 concerns and addresses a subject in which the state at large is 836-13 interested. The terms and provisions of this chapter are to be 836-14 liberally construed in order to carry out the purposes set forth in 836-15 this chapter. 836-16 Sec. 278.036. SCOPE OF AUTHORITY. The exercise of all 836-17 powers granted to the authority under this chapter pertaining to 836-18 the construction and operation of its facilities, including the 836-19 authority's right of eminent domain, shall be limited only as 836-20 provided by Section 278.016(e). 836-21 CHAPTER 279. WEST CENTRAL TEXAS MUNICIPAL WATER DISTRICT 836-22 Sec. 279.001. CREATION. (a) A conservation and reclamation 836-23 district to be known as the "West Central Texas Municipal Water 836-24 District" is created. The district is a governmental agency and a 836-25 body politic and corporate. 836-26 (b) The district is created under and is essential to 837-1 accomplish the purposes of Section 59, Article XVI, Texas 837-2 Constitution. 837-3 Sec. 279.002. DEFINITIONS. In this chapter: 837-4 (1) "Board" means the board of directors of the 837-5 district. 837-6 (2) "Director" means a member of the board. 837-7 (3) "District" means the West Central Texas Municipal 837-8 Water District. 837-9 Sec. 279.003. BOUNDARIES. (a) The boundaries of the 837-10 district include all the territory within the boundaries of the 837-11 cities of Abilene, Albany, Anson, and Breckenridge on January 1, 837-12 1985. A defect in the definition of the boundaries of any of those 837-13 cities does not affect the validity of the district or any of its 837-14 powers or duties. 837-15 (b) The legislature finds that all territory within the 837-16 boundaries of the district does and will benefit from the present 837-17 and contemplated improvements, works, and facilities of the 837-18 district. 837-19 (c) The district may only annex territories as provided by 837-20 Sections 279.007 and 279.008. 837-21 Sec. 279.004. BOARD OF DIRECTORS. (a) All powers of the 837-22 district shall be exercised by a board of directors. Each director 837-23 is appointed by majority vote of the governing body of the city in 837-24 which the director resides. 837-25 (b) The number of directors to be appointed from each city 837-26 in the district shall be governed by the population of the city, 838-1 with: 838-2 (1) each city having a population of 10,000 or less 838-3 appointing two directors; and 838-4 (2) each city having a population of more than 10,000 838-5 appointing two directors plus one director for each 10,000 838-6 population or part of 10,000 population over 10,000, provided, 838-7 however, that no city shall appoint more than one-half of the 838-8 members of the board. 838-9 (c) In May of each year the governing body of each city that 838-10 is entitled to appoint more than one director shall appoint not 838-11 less than one director for a two-year term beginning June 1 of that 838-12 year. The first director from any city annexed to the district 838-13 that is entitled to only one director may be appointed for a term 838-14 ending on a May 31 not more than two years from the date of 838-15 appointment. 838-16 (d) Each director serves for a term of office as provided by 838-17 this section and until a successor is appointed and has qualified. 838-18 (e) A director must reside in and own taxable property in 838-19 the city from which the director is appointed. A member of a 838-20 governing body of a city or an employee of a city is not eligible 838-21 to serve as a director. 838-22 (f) A director shall subscribe the constitutional oath of 838-23 office and shall give bond for the faithful performance of the 838-24 director's duties in the amount of $5,000, the cost of which shall 838-25 be paid by the district. 838-26 (g) A majority of the members of the board constitutes a 839-1 quorum. 839-2 (h) If a director moves from the city from which the 839-3 director is appointed, the governing body of the city shall appoint 839-4 a successor for the unexpired term. 839-5 Sec. 279.005. FEES. (a) Each director is entitled to 839-6 receive a fee not to exceed $20 for attending each meeting of the 839-7 board; provided, however, that no more than $40 may be paid to a 839-8 director for meetings held in any one calendar month. 839-9 (b) Each director is entitled to receive a fee not to exceed 839-10 $20 per day for each day devoted to the business of the district 839-11 and reimbursement for actual expenses incurred in attending to 839-12 district business provided that such service and expense are 839-13 expressly approved by the board. 839-14 Sec. 279.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 839-15 shall elect from among its members a president and a vice president 839-16 of the district and other officers as in the judgment of the board 839-17 are necessary. 839-18 (b) The president is the chief executive officer of the 839-19 district and the presiding officer of the board and has the same 839-20 right to vote as any other director. 839-21 (c) The vice president shall perform all duties and exercise 839-22 all powers conferred by this chapter on the president when the 839-23 president is absent or fails or declines to act except the 839-24 president's right to vote. 839-25 (d) The board shall appoint a secretary and a treasurer who 839-26 may or may not be members of the board and may combine those 840-1 offices. The treasurer must give bond in such amount as may be 840-2 required by the board. The bond must be conditioned on the 840-3 treasurer accounting for all money that comes into the treasurer's 840-4 custody as treasurer of the district. 840-5 (e) The board shall appoint necessary engineers, attorneys, 840-6 and other employees and employ a general manager. The general 840-7 manager may employ and discharge employees. 840-8 (f) The board shall adopt a seal for the district. 840-9 Sec. 279.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES. 840-10 (a) Other territory situated within the counties of Taylor, Jones, 840-11 Shackelford, and Stephens may be annexed to the district as 840-12 provided by this section. 840-13 (b) A petition for annexation must: 840-14 (1) be signed by 50 or a majority, whichever number is 840-15 less, of the qualified voters of the territory to be annexed who 840-16 own taxable property in the territory being annexed and who have 840-17 duly rendered the property to the city, if situated within a city 840-18 or town, or county for taxation; 840-19 (2) be filed with the board; and 840-20 (3) describe the territory to be annexed by metes and 840-21 bounds or otherwise unless the territory is the same as that 840-22 contained in a city or town, in which event it shall be sufficient 840-23 to state that the territory to be annexed is that which is 840-24 contained within the city or town. 840-25 (c) If the board finds that the petition complies with and 840-26 is signed by the number of qualified persons required under 841-1 Subsection (b), that the annexation would be to the interest of the 841-2 territory to be annexed and the district, and that the district 841-3 will be able to supply water to the territory to be annexed, or 841-4 cause water to be supplied to the territory to be annexed, the 841-5 board shall adopt a resolution stating the conditions, if any, 841-6 under which territory may be annexed to the district and requesting 841-7 the commission to annex the territory to the district. The 841-8 resolution shall be conclusive of the legal sufficiency of the 841-9 petition and the qualifications of the signers of the petition. A 841-10 certified copy of the resolution and of the petition shall be filed 841-11 with the commission. 841-12 (d) The commission shall adopt a resolution declaring its 841-13 intention to call an election in the territory to be annexed for 841-14 the purpose of submitting the proposition of whether the territory 841-15 shall be annexed to the district. The commission shall set a time 841-16 and place for a hearing to be held by the commission on the 841-17 question of whether the territory to be annexed will benefit from 841-18 the improvements, works, and facilities then owned or operated or 841-19 contemplated to be owned or operated by the district or by the 841-20 other functions of the district. A railroad right-of-way that is 841-21 not situated within the defined limits of an incorporated city or 841-22 town will not benefit from the improvements, works, and facilities 841-23 that the district is authorized to construct. A railroad 841-24 right-of-way may not be annexed to the district unless the 841-25 right-of-way is contained within the limits of an incorporated city 841-26 or town that has been annexed to the district. 842-1 (e) Notice of the adoption of the resolution stating the 842-2 time and place of the hearing and addressed to the citizens and 842-3 owners of property in the territory to be annexed must be published 842-4 one time in a newspaper designated by the commission at least 10 842-5 days before the date of the hearing. The notice must describe the 842-6 territory to be annexed in the same manner in which it is required 842-7 or permitted by this chapter to be described in the petition. 842-8 (f) All interested persons may appear at the hearing and 842-9 offer evidence for or against the intended annexation. The hearing 842-10 may proceed in the order and under the rules prescribed by the 842-11 commission and may be recessed from time to time. If, at the 842-12 conclusion of the hearing, the commission finds that all the lands 842-13 in the territory to be annexed will benefit from the present or 842-14 contemplated improvements, works, or facilities of the district, 842-15 the commission shall adopt a resolution calling an election in the 842-16 territory to be annexed stating the date and place or places for 842-17 holding the election and appointing a presiding judge for each 842-18 voting place who shall appoint the necessary assistant judges and 842-19 clerks to assist in holding the election. 842-20 (g) Notice of the election, stating the date of the 842-21 election, the proposition to be voted on and the conditions under 842-22 which the territory may be annexed, or making reference to the 842-23 resolution of the board for that purpose, and the place or places 842-24 for holding the election, shall be published one time in a 842-25 newspaper designated by the commission at least 10 days before the 842-26 date set for the election. 843-1 (h) Only qualified electors who reside in the territory to 843-2 be annexed may vote in the election. Returns of the election shall 843-3 be made to the commission. 843-4 (i) The board shall canvass the returns of the election and 843-5 certify the returns to the commission, which shall then adopt a 843-6 resolution declaring the results of the election. If the 843-7 resolution shows that a majority of the votes cast are in favor of 843-8 annexation the commission shall enter an order annexing the 843-9 territory to the district, and the annexation shall be 843-10 incontestable except in the manner and within the time for 843-11 contesting elections under the Election Code. A certified copy of 843-12 the order shall be recorded in the deed records of the county in 843-13 which the annexed territory is situated. 843-14 (j) The commission, in calling the election on the 843-15 proposition for annexation of territory, may include as a part of 843-16 the same proposition a proposition for the assumption of its part 843-17 of the tax-supported bonds of the district then outstanding and 843-18 those voted but not yet sold and for the levy of an ad valorem tax 843-19 on taxable property in the annexed territory along with the tax in 843-20 the rest of the district for the payment of the bonds. 843-21 (k) After territory is added to the district, the board may 843-22 call an election over the entire district for the purpose of 843-23 determining whether the entire district as enlarged shall assume 843-24 the tax-supported bonds then outstanding and those voted but not 843-25 yet sold and whether an ad valorem tax shall be levied on all 843-26 taxable property within the district as enlarged for the payment of 844-1 the bonds, unless the proposition is voted along with the 844-2 annexation election and becomes lawfully binding on the territory 844-3 annexed. The election shall be called and held in the same manner 844-4 as elections for the issuance of bonds as provided by this chapter. 844-5 (l) If no newspaper is published in the territory to be 844-6 annexed, the notices shall be posted at three public places in the 844-7 territory. 844-8 Sec. 279.008. ANNEXATION OF TERRITORY IN CERTAIN CITIES. 844-9 (a) Territory annexed to any city contained in the district may be 844-10 annexed to the district as provided by this section. 844-11 (b) At any time after final passage of an ordinance or 844-12 resolution annexing territory to a city contained in the district, 844-13 the board may issue a notice of a hearing on the question of 844-14 annexing the territory or any part of the territory. The notice is 844-15 sufficient if it states the date and place of the hearing and: 844-16 (1) describes the area proposed to be annexed; or 844-17 (2) makes reference to the annexation ordinance of the 844-18 city. 844-19 (c) The notice must be published one time in a newspaper 844-20 having general circulation in the city that made the annexation. 844-21 The notice must be published at least 10 days before the date set 844-22 for the hearing. 844-23 (d) If, at the hearing, the board finds that the territory 844-24 proposed to be annexed will benefit from the water supply afforded 844-25 or to be afforded by the district, the board shall adopt a 844-26 resolution annexing the territory to the district. 845-1 Sec. 279.009. APPOINTMENT OF DIRECTORS IN ANNEXED 845-2 TERRITORIES. (a) If the territory of a city is annexed to the 845-3 district, the governing body of the city shall appoint the number 845-4 of directors to which it is entitled under Section 279.004 and the 845-5 terms of the appointees shall expire on May 31. 845-6 (b) A city with a population of less than 2,000 annexed by 845-7 the district may not appoint a director as long as the city has a 845-8 population of less than 2,000. 845-9 Sec. 279.010. WATER APPROPRIATION PERMITS. The district may 845-10 obtain appropriation permits from the commission through 845-11 appropriate hearings as provided by Chapter 11. 845-12 Sec. 279.011. DAMS AND OTHER FACILITIES FOR IMPOUNDING, 845-13 PROCESSING, OR TRANSPORTING WATER. (a) The district may acquire 845-14 or construct, within or outside the boundaries of the district, 845-15 dams and all works, plants, and other facilities necessary or 845-16 useful for the purpose of impounding, processing, and transporting 845-17 water to cities and others for municipal, domestic, industrial, and 845-18 mining purposes. 845-19 (b) The size of a dam and reservoir shall be determined by 845-20 the board, taking into consideration probable future increases in 845-21 water requirements. 845-22 (c) The size of a dam shall not be limited by the amount of 845-23 water initially authorized by the commission or a predecessor 845-24 agency of the commission to be impounded in the dam. 845-25 (d) A dam or other facility for impounding water may not be 845-26 constructed until the plan for the facility is approved by the 846-1 commission. 846-2 Sec. 279.012. POWERS AND DUTIES. (a) In this section, 846-3 "person" means: 846-4 (1) an individual, partnership, corporation, or other 846-5 private entity; and 846-6 (2) a public agency, including an authority, district, 846-7 city, town, or other political subdivision, joint board, or other 846-8 public agency created and operating under the laws of this state. 846-9 (b) The district has the additional specific powers provided 846-10 by this section. 846-11 (c) The district may acquire, construct, finance, or 846-12 otherwise provide any kind or type of water facilities, water 846-13 pollution control facilities, waste disposal facilities, and air 846-14 pollution control facilities in any area: 846-15 (1) within the Clear Fork of the Brazos River 846-16 Watershed and its tributaries; 846-17 (2) within Jones, Shackelford, Stephens, and Taylor 846-18 counties; and 846-19 (3) inside or outside the boundaries of the areas 846-20 described in Subdivisions (1) and (2) with respect to water 846-21 facilities designed primarily to serve inhabitants within those 846-22 areas except as otherwise limited by this section. 846-23 (d) The district may exercise all powers granted to a 846-24 district or a river authority created and operating under Section 846-25 59, Article XVI, Texas Constitution, by Chapter 383, Health and 846-26 Safety Code, Chapter 1371, Government Code, Chapter 30, and any 847-1 other general law relating to the powers and facilities provided by 847-2 this subsection and Subsection (c). 847-3 (e) If the district creates a nonprofit corporation to act 847-4 on its behalf under the Development Corporation Act of 1979 847-5 (Article 5190.6, Vernon's Texas Civil Statutes), the corporation 847-6 may exercise its powers with respect to projects within the area 847-7 described by Subsection (c). 847-8 (f) The district and any persons may contract, on terms and 847-9 conditions to which the parties may agree, with respect to any 847-10 power, function, or duty of the district, including those granted 847-11 in this section. The district and those persons who are parties to 847-12 the contract may execute appropriate documents and instruments in 847-13 connection with the contract. 847-14 (g) The district may issue bonds with respect to any of its 847-15 powers including those powers granted by this section in the manner 847-16 provided by Section 279.017. The district may issue bonds to 847-17 provide funds to enable the district to pay for costs of 847-18 engineering design and studies, surveying, title research, 847-19 appraisals, options on real or personal property, and other related 847-20 activities in connection with planning and implementing various 847-21 proposed projects or improvements and to provide funds to operate 847-22 and maintain any facilities. 847-23 (h) The district may invest its funds, including bond 847-24 proceeds, in any manner or in any securities determined by the 847-25 board. 847-26 (i) In addition to all other powers granted by this chapter 848-1 or by any other law, the district may undertake and carry out 848-2 activities, enter into contracts, loan agreements, leases, or 848-3 installment sales agreements, acquire, purchase, construct, own, 848-4 operate, maintain, repair, improve, or extend, and loan, lease, 848-5 sell, or otherwise dispose of qualifying works, improvements, 848-6 facilities, plants, buildings, structures, equipment, appliances, 848-7 real and personal property or any interest in that property, and 848-8 money or bond proceeds, at any location within the area described 848-9 in Subsection (c), or at any location outside that area with 848-10 respect to facilities that are designed primarily to serve 848-11 inhabitants within that area on the terms and conditions, including 848-12 loan payments, rentals, sale price, or installment sale payments, 848-13 to which the parties may agree. To qualify under this subsection, 848-14 works, improvements, facilities, plants, buildings, structures, 848-15 equipment, appliances, real and personal property or any interest 848-16 in that property, or money or bond proceeds must be incident, 848-17 helpful, or necessary to: 848-18 (1) provide for the development, drilling, control, 848-19 storage, preservation, transmission, treatment, distribution, and 848-20 use of groundwater, storm water, floodwater, and the water of 848-21 rivers and streams for municipal, domestic, electric energy or 848-22 power, industrial, irrigation, oil flooding, mining, agricultural, 848-23 commercial, flood control, and all other beneficial purposes; 848-24 (2) supply water for municipal, domestic, electric 848-25 energy or power, industrial, irrigation, oil flooding, mining, 848-26 agricultural, commercial, and all other beneficial uses and 849-1 purposes; 849-2 (3) collect, transport, process, treat, dispose of, 849-3 and control all waste, including all municipal, domestic, 849-4 industrial, agricultural, recreational, and other waste, whether in 849-5 fluid, solid, or composite state; 849-6 (4) control, abate, or reduce all types of pollution, 849-7 including air pollution and water pollution; 849-8 (5) reclaim and provide drainage and drainage systems 849-9 for land; 849-10 (6) establish or otherwise provide for public parks 849-11 and recreation facilities; and 849-12 (7) facilitate the carrying out of any power, duty, or 849-13 function of the district. 849-14 (j) The legislature finds that the purposes listed in 849-15 Subsection (i) are for the conservation and development of the 849-16 natural resources of the state within the meaning of Section 59, 849-17 Article XVI, Texas Constitution. 849-18 (k) The district is considered to be a district and a river 849-19 authority for the purposes of Chapters 362 and 383, Health and 849-20 Safety Code, and Chapter 30, except that if there is a conflict 849-21 between a provision of one of those chapters and this chapter, this 849-22 chapter prevails. 849-23 (l) Chapter 1371, Government Code, applies to the district. 849-24 (m) Any person may contract with the district in any manner 849-25 authorized by this chapter, Chapters 362 and 383, Health and Safety 849-26 Code, and Chapter 30 with respect to water, waste, pollution 850-1 control, or any other facilities and services provided by the 850-2 district. 850-3 (n) A public agency may contract with the district and may 850-4 determine, agree, and pledge that all or any part of its payments 850-5 under the contract are payable from the source described in Section 850-6 30.030(c), subject only to the authorization of the contract, 850-7 pledge, and payments by a majority vote of the governing body of 850-8 the public agency. A public agency may use and pledge any other 850-9 available revenues or resources for and to the payment of amounts 850-10 due under a contract, as an additional or the sole source of 850-11 payment, and may covenant in that respect to assure the 850-12 availability of the revenues and resources when required. 850-13 (o) If bonds issued by the district recite that they are 850-14 secured by a pledge of revenues from a contract, a copy of the 850-15 contract and the proceedings relating to the contract shall be 850-16 submitted to the attorney general along with the bonds under 850-17 Section 279.021. If the attorney general finds that the bonds have 850-18 been authorized and the contract has been entered into in 850-19 accordance with law, the attorney general shall approve the bonds 850-20 and the contract. After the bonds and the contract are approved by 850-21 the attorney general, they are incontestable in any court or other 850-22 forum for any reason and are valid and binding in accordance with 850-23 their terms and provisions for all purposes. 850-24 (p) A public agency may set, charge, and collect fees, 850-25 rates, charges, rentals, and other amounts for any service or 850-26 facility provided by a utility operated by it, or provided pursuant 851-1 to or in connection with a contract with the district, from its 851-2 inhabitants or from users or beneficiaries of the utility, service, 851-3 or facility, including: 851-4 (1) water charges; 851-5 (2) sewage charges; 851-6 (3) waste disposal system fees and charges, including 851-7 garbage collection or handling fees; and 851-8 (4) other fees or charges. 851-9 (q) A public agency may use and pledge the fees authorized 851-10 by Subsection (p) to make payments to the district required under a 851-11 contract with the district and may covenant to do so in amounts 851-12 sufficient to make all or any part of the payments to the district 851-13 when due. If the parties agree in the contract, these payments 851-14 constitute an expense of operation of any facility or utility 851-15 operated by the public agency, provided, however, that no agreement 851-16 may be made that would violate the United States or Texas 851-17 constitutions. 851-18 (r) This section is wholly sufficient authority within 851-19 itself for the exercise of the powers, the issuance of the bonds, 851-20 the execution of contracts, and the performance of the other acts 851-21 and procedures authorized by this section by the district and all 851-22 persons, including public agencies, without reference to any other 851-23 law or any restrictions or limitations contained in any other law, 851-24 except as specifically provided. To the extent of any conflict or 851-25 inconsistency between this section and any other law, including any 851-26 home-rule city charter, this section prevails and controls. The 852-1 district and all persons, including public agencies, are entitled 852-2 to use any other law that is not in conflict with this section to 852-3 the extent convenient or necessary to carry out any power or 852-4 authority, express or implied, granted by this section. 852-5 (s) This section does not compel any person, including any 852-6 public agency, to secure water, sewer service, or any other service 852-7 from the district except under a voluntarily executed contract. 852-8 (t) Special facility projects to acquire and construct 852-9 separate projects on behalf of a contracting party that are 852-10 self-liquidating and do not constitute a part of the district's 852-11 system may be undertaken only after board approval. None of the 852-12 district's assets may be encumbered for the special facility 852-13 projects described by this subsection other than the facilities 852-14 that are a part of the special facility project. None of a member 852-15 city's assets may be encumbered for the special facility projects 852-16 described by this subsection unless the encumbrance is approved by 852-17 the governing body of the city. 852-18 Sec. 279.013. ACQUISITION OF PROPERTY; CONSTRUCTION OF 852-19 FACILITIES. The district may acquire land and construct, lease, or 852-20 otherwise acquire all works, plants, and other facilities necessary 852-21 or useful for the purpose of exercising the powers and purposes of 852-22 the district including diverting, further impounding or storing 852-23 water, developing underground sources of water, and processing and 852-24 transporting the water to cities and others for municipal, 852-25 domestic, industrial, and mining purposes inside or outside the 852-26 boundaries of the district. Subject to the terms of any deed of 853-1 trust issued by the district, the district may sell, trade, or 853-2 otherwise dispose of any real or personal property considered by 853-3 the board not to be needed for district purposes. 853-4 Sec. 279.014. EMINENT DOMAIN. For the purpose of carrying 853-5 out a power or authority conferred by this chapter the district may 853-6 acquire land and other property and easements inside or outside the 853-7 boundaries of the district, including land needed for the reservoir 853-8 and dam and flood easements above the probable high-water line 853-9 around the reservoirs, by condemnation in the manner provided by 853-10 Chapter 21, Property Code. The district is a municipal corporation 853-11 within the meaning of Section 21.021(c), Property Code. The amount 853-12 and character of interest in land, other property, or easements to 853-13 be acquired shall be determined by the board. 853-14 Sec. 279.015. RELOCATION OF FACILITIES. If the district, in 853-15 the exercise of the power of eminent domain, the power of 853-16 relocation, or any other power granted under this chapter, makes 853-17 necessary the relocation, raising, rerouting, changing of grade, or 853-18 altering the construction of any highway, railroad, electric 853-19 transmission line, telephone or telegraph properties and 853-20 facilities, or pipeline, all such necessary relocation, raising, 853-21 rerouting, changing of grade, or alteration of construction shall 853-22 be accomplished at the sole expense of the district. 853-23 Sec. 279.016. AWARD OF CONSTRUCTION CONTRACT. A 853-24 construction contract requiring an expenditure of more than $25,000 853-25 may be made after publication of a notice to bidders once each week 853-26 for two weeks before awarding the contract. The notice is 854-1 sufficient if it states the time and place when and where the bids 854-2 will be opened, the general nature of the work to be done, or the 854-3 material, equipment, or supplies to be purchased and states where 854-4 and the terms on which copies of the plans and specifications may 854-5 be obtained. The publication must be in a newspaper published in 854-6 the district and designated or approved by the board. 854-7 Sec. 279.017. BONDS. (a) For the purpose of providing a 854-8 source of water supply for cities and other users for municipal, 854-9 domestic, industrial, and mining purposes, as authorized by this 854-10 chapter, and for the purpose of carrying out any other power or 854-11 authority conferred by this chapter, the district may issue 854-12 negotiable bonds payable from revenues or taxes or both revenues 854-13 and taxes of the district as pledged by resolution of the board. 854-14 Pending the issuance of definitive bonds, the board may authorize 854-15 the delivery of negotiable interim bonds or notes, eligible for 854-16 exchange or substitution by use of the definitive bonds. 854-17 (b) Bonds must be authorized by resolution of the board, 854-18 issued in the name of the district, signed by the president or vice 854-19 president, and attested by the secretary and shall bear the seal of 854-20 the district. The signature of the president or the secretary may 854-21 be printed or lithographed on the bonds with the approval of the 854-22 president or secretary. The seal of the district may be impressed 854-23 on the bonds or may be printed or lithographed on the bonds. 854-24 (c) Bonds must mature serially or otherwise in not to exceed 854-25 40 years and may be sold at a price and under terms determined by 854-26 the board to be the most advantageous reasonably obtainable, 855-1 provided that the interest cost to the district, calculated by use 855-2 of standard bond interest tables currently in use by insurance 855-3 companies and investment houses, does not exceed six percent per 855-4 year. Within the discretion of the board, the bonds may be made 855-5 callable prior to maturity at such times and prices as may be 855-6 prescribed in the resolution authorizing the bonds and may be made 855-7 registrable as to principal or as to both principal and interest. 855-8 (d) Bonds may be issued in more than one series and from 855-9 time to time as required for carrying out the purposes of this 855-10 chapter. 855-11 (e) Bonds may be secured by a pledge of all or part of the 855-12 net revenues of the district, of the net revenues of any one or 855-13 more contracts made before or after the bonds are issued, or of 855-14 other revenues or income specified by resolution of the board or in 855-15 the trust indenture. A pledge may reserve the right, under 855-16 conditions specified in the pledge, to issue additional bonds to be 855-17 on a parity with or subordinate to the bonds being issued. In this 855-18 subsection, the term "net revenues" means the gross revenues of the 855-19 district less the amount necessary to pay the cost of maintaining 855-20 and operating the district and its properties. 855-21 (f) The district may issue bonds payable from ad valorem 855-22 taxes to be levied on all taxable property in the district or may 855-23 issue bonds secured by and payable from both those taxes and the 855-24 revenues of the district. If bonds are issued payable wholly or 855-25 partially from ad valorem taxes, the board shall levy a tax 855-26 sufficient to pay bonds and the interest on the bonds as the bonds 856-1 and interest become due. The rate of the tax for any year may be 856-2 set after giving consideration to the money received from the 856-3 pledged revenues available for payment of principal and interest to 856-4 the extent and in the manner permitted by the resolution 856-5 authorizing the issuance of the bonds. 856-6 (g) If bonds payable wholly from revenues are issued, the 856-7 board shall set, and from time to time revise the rates of 856-8 compensation for water sold and services rendered by the district 856-9 sufficient to pay the expense of operating and maintaining the 856-10 facilities of the district and to pay bonds as they mature and the 856-11 interest as it accrues and to maintain the reserve and other funds 856-12 as provided in the resolution authorizing the bonds. If bonds 856-13 payable partially from revenues are issued, the board shall set, 856-14 and from time to time revise, the rate of compensation for water 856-15 sold and services rendered by the district sufficient to assure 856-16 compliance with the resolution authorizing the bonds. 856-17 (h) From the proceeds of the sale of the bonds, the district 856-18 may set aside an amount for the payment of interest expected to 856-19 accrue during construction and for a reserve interest and sinking 856-20 fund, and this provision may be made in the resolution authorizing 856-21 the bonds. Proceeds from the sale of the bonds may also be used 856-22 for the payment of all expenses necessarily incurred in 856-23 accomplishing the purpose for which the district is created, 856-24 including expenses of issuing and selling the bonds. The proceeds 856-25 from the sale of the bonds may be temporarily invested in direct 856-26 obligations of, or obligations whose principal and interest are 857-1 unconditionally guaranteed by, the United States government, 857-2 Federal Intermediate Credit Banks, Federal Land Banks, the Federal 857-3 National Mortgage Association, Federal Home Loan Banks, or Banks 857-4 for Cooperatives. 857-5 (i) In the event of a default or a threatened default in the 857-6 payment of the principal of or interest on bonds payable wholly or 857-7 partially from revenues, any court of competent jurisdiction may, 857-8 on petition of the holders of outstanding bonds, appoint a receiver 857-9 with authority to collect and receive all income of the district 857-10 except taxes, employ and discharge agents and employees of the 857-11 district, take charge of the district's funds on hand, except funds 857-12 received from taxes unless commingled, and manage the proprietary 857-13 affairs of the district without consent or hindrance by the 857-14 directors. The receiver may also be authorized to sell or make 857-15 contracts for the sale of water or renew the contracts with the 857-16 approval of the court appointing the receiver. The court may vest 857-17 the receiver with other powers and duties the court finds necessary 857-18 for the protection of the holders of the bonds. The resolution 857-19 authorizing the issuance of the bonds or the trust indenture 857-20 securing them may limit or qualify the rights of less than all of 857-21 the outstanding bonds payable from the same source to institute or 857-22 prosecute any litigation affecting the district's property or 857-23 income. 857-24 Sec. 279.018. REFUNDING BONDS. (a) The district may issue 857-25 refunding bonds for the purpose of refunding any outstanding bonds 857-26 authorized by this chapter and any interest on the bonds. The 858-1 refunding bonds may be issued to refund more than one series of 858-2 outstanding bonds and may combine the pledges for the outstanding 858-3 bonds for the security of the refunding bonds, and the refunding 858-4 bonds may be secured by other or additional revenues and mortgage 858-5 liens. 858-6 (b) The provisions of this chapter regarding the issuance by 858-7 the district of other bonds, the security for the bonds, the 858-8 approval of the bonds by the attorney general, and the remedies of 858-9 the holders shall be applicable to refunding bonds. Refunding 858-10 bonds shall be registered by the comptroller on surrender and 858-11 cancellation of the bonds to be refunded, but in lieu of that 858-12 process, the resolution authorizing the issuance of the refunding 858-13 bonds may provide that the refunding bonds shall be sold and the 858-14 proceeds of the sale deposited in the bank where the original bonds 858-15 are payable, in which case the refunding bonds may be issued in an 858-16 amount sufficient to pay the principal of and the interest on the 858-17 original bonds to their option date or maturity date, and the 858-18 comptroller shall register the refunding bonds without concurrent 858-19 surrender and cancellation of the original bonds. 858-20 Sec. 279.019. TRUST INDENTURE FOR BONDS. (a) Bonds, 858-21 including refunding bonds, authorized by this chapter, not payable 858-22 wholly from ad valorem taxes, may be additionally secured by a 858-23 trust indenture under which the trustee may be a bank having trust 858-24 powers situated either within or outside the state. The bonds, 858-25 within the discretion of the board, may be additionally secured by 858-26 a deed of trust or mortgage lien on physical properties of the 859-1 district and all franchises, easements, water rights, appropriation 859-2 permits, leases, contracts, and all rights appurtenant to the 859-3 properties, vesting in the trustee power to sell the properties for 859-4 payment of the indebtedness, power to operate the properties, and 859-5 all other powers and authority for the further security of the 859-6 bonds. 859-7 (b) The trust indenture, regardless of the existence of the 859-8 deed of trust or mortgage lien on the properties, may: 859-9 (1) contain any provisions prescribed by the board for 859-10 the security of the bonds and the preservation of the trust estate; 859-11 (2) make provision for amendment or modification of 859-12 the trust indenture and the issuance of bonds to replace lost or 859-13 mutilated bonds; 859-14 (3) condition the right to expend district money or 859-15 sell district property on approval of a registered professional 859-16 engineer selected as provided in the trust indenture; and 859-17 (4) make provision for the investment of funds of the 859-18 district. 859-19 (c) A purchaser under a sale under a deed of trust lien, 859-20 where one is given, shall be the absolute owner of the properties, 859-21 facilities, and rights so purchased and shall have the right to 859-22 maintain and operate the properties, facilities, and rights. 859-23 Sec. 279.020. BOND ELECTIONS. (a) Bonds payable wholly or 859-24 partially from ad valorem taxes, except refunding bonds, shall not 859-25 be issued unless authorized by an election at which only the 859-26 qualified voters who reside in the district are eligible to vote 860-1 and unless a majority of the votes cast in each city contained in 860-2 the district are in favor of the issuance of the bonds. If a 860-3 majority of the votes cast in a city contained in the district are 860-4 against the issuance of the bonds, the board may adopt a resolution 860-5 detaching the territory of the city from the district if the board 860-6 finds that it is in the best interest of the district to issue the 860-7 bonds payable wholly or partially from taxes, but no territory may 860-8 be detached from the district after the issuance of bonds that are 860-9 payable from revenues or taxes or both. Bonds not payable wholly 860-10 or partially from ad valorem taxes may be issued without an 860-11 election. 860-12 (b) An election for the issuance of bonds payable wholly or 860-13 partly from ad valorem taxes may be called by the board without a 860-14 petition. The resolution calling the election shall specify the 860-15 time and location of the election, the purpose for which the bonds 860-16 are to be issued, the maximum amount of the bonds, the maximum 860-17 maturity of the bonds, the form of the ballot, and the presiding 860-18 judge for each voting place. The presiding judge serving at each 860-19 voting place shall appoint one assistant judge and at least two 860-20 clerks to assist in holding the election. Notice of the election 860-21 shall be given by publishing a substantial copy of the resolution 860-22 in one newspaper published in each city contained in the district 860-23 for two consecutive weeks. The first publication must be at least 860-24 21 days before the date of the election. In a city in which no 860-25 newspaper is published, notice shall be given by posting a copy of 860-26 the resolution in three public places. 861-1 (c) The returns of the election shall be made to and 861-2 canvassed by the board. 861-3 (d) The Election Code shall be applicable to elections held 861-4 under this section of this law except as otherwise provided by this 861-5 chapter. 861-6 Sec. 279.021. APPROVAL AND REGISTRATION OF BONDS. After any 861-7 bonds, including refunding bonds, are authorized by the district, 861-8 the bonds and the record relating to their issuance shall be 861-9 submitted to the attorney general for examination as to the 861-10 validity of the bonds and the record. If the bonds recite that 861-11 they are secured by a pledge of the proceeds of a contract 861-12 previously made between the district and a city or other 861-13 governmental agency, authority, or district, a copy of the contract 861-14 and the proceedings of the city or other governmental agency, 861-15 authority, or district authorizing the contract shall also be 861-16 submitted to the attorney general. If the bonds have been 861-17 authorized and if the contract has been made in accordance with the 861-18 constitution and laws of the state, the attorney general shall 861-19 approve the bonds and the contract and the bonds shall then be 861-20 registered by the comptroller. After the approval and 861-21 registration, the bonds and the contracts, if any, are valid and 861-22 binding and are incontestable for any cause. 861-23 Sec. 279.022. WATER SUPPLY CONTRACTS. The district may 861-24 contract with cities and others for the purpose of supplying water 861-25 to them. The district may also contract with a city for the rental 861-26 or leasing of or for the operation of the water production, water 862-1 supply, water filtration or purification, and water supply 862-2 facilities of the city on the consideration the district and the 862-3 city may agree. The contract may be on the terms and for the time 862-4 the parties may agree, and the contract may provide that it shall 862-5 continue in effect until bonds specified in the contract and 862-6 refunding bonds issued in lieu of those bonds are paid. 862-7 Sec. 279.023. DISTRICT DEPOSITORY. (a) The board shall 862-8 designate one or more banks within the district to serve as 862-9 depository for the funds of the district. All funds of the 862-10 district shall be deposited in the depository bank or banks, except 862-11 that funds pledged to pay bonds may be deposited with the trustee 862-12 bank named in the trust agreement and funds shall be remitted to 862-13 the bank of payment for the payment of the principal of and 862-14 interest on bonds. To the extent that funds in the depository 862-15 banks and the trustee bank are not insured by the Federal 862-16 Depository Insurance Corporation, the funds shall be secured in the 862-17 manner provided by law for the security of county funds. 862-18 (b) Before designating a depository bank or banks, the board 862-19 shall issue a notice stating the time and place when and where the 862-20 board will meet to designate the depository or depositories and 862-21 inviting the banks in the district to submit applications to be 862-22 designated depositories. The term of service for depositories 862-23 shall be prescribed by the board. The notice of the meeting must 862-24 be published one time in a newspaper or newspapers published in the 862-25 district and specified by the board. 862-26 (c) At the time mentioned in the notice of the meeting, the 863-1 board shall consider the applications and the management and 863-2 condition of the banks filing the applications and shall designate 863-3 as depositories the bank or banks that offer the most favorable 863-4 terms and conditions for the handling of the funds of the district 863-5 and that the board finds have proper management and are in 863-6 condition to warrant handling of district funds. Membership on the 863-7 board of an officer or director of a bank shall not disqualify the 863-8 bank from being designated as depository. 863-9 (d) If no applications are received by the time stated in 863-10 the notice of the meeting, the board shall designate a bank or 863-11 banks within or outside the district on terms and conditions the 863-12 board finds advantageous to the district. 863-13 Sec. 279.024. POWERS RELATING TO WATER ACQUISITION. The 863-14 district may acquire water appropriation permits from owners of 863-15 permits. The district may lease or acquire rights in and to 863-16 storage and storage capacity in any reservoir constructed or to be 863-17 constructed by any person, firm, corporation, or public agency or 863-18 from the United States government or any of its agencies. The 863-19 district may purchase or make contracts for the purchase of water 863-20 or a water supply from any person, firm, corporation, or public 863-21 agency or from the United States government or any of its agencies. 863-22 Sec. 279.025. BONDS AS INVESTMENTS AND SECURITY FOR 863-23 DEPOSITS. (a) All bonds of the district are legal and authorized 863-24 investments for banks, savings banks, trust companies, building and 863-25 loan associations, savings and loan associations, insurance 863-26 companies, fiduciaries, trustees, and guardians and for the sinking 864-1 fund of cities, towns, villages, counties, school districts, or 864-2 other political corporations or subdivisions of the state. 864-3 (b) District bonds are eligible to secure the deposit of 864-4 public funds of the state and cities, towns, villages, counties, 864-5 school districts, or other political corporations or subdivisions 864-6 of the state. The bonds are lawful and sufficient security for the 864-7 deposits to the extent of the value of the bonds when accompanied 864-8 by all unmatured coupons appurtenant to the bonds. 864-9 Sec. 279.026. TAX EXEMPTION. The accomplishment of the 864-10 purposes stated in this chapter is for the benefit of the people of 864-11 the state and for the improvement of properties and industries of 864-12 the people of the state, and the district, in carrying out the 864-13 purposes of this chapter, will be performing an essential public 864-14 function under the constitution and shall not be required to pay 864-15 any tax or assessment on a project or any part of a project under 864-16 this chapter. The bonds issued as provided by this chapter and the 864-17 transfer of and income from the bonds, including the profits made 864-18 on the sale of the bonds, shall at all times be free from taxation 864-19 within the state. 864-20 Sec. 279.027. LEVYING, ASSESSMENT, EQUALIZATION, RENDITION, 864-21 AND COLLECTION OF TAXES. (a) Taxes throughout the district shall 864-22 be equitably distributed as required by Section 59, Article XVI, 864-23 Texas Constitution, and to that end, the board shall appoint an 864-24 assessor and collector of taxes and shall annually appoint a board 864-25 of equalization. Members of the board of equalization shall be 864-26 persons whom the board finds to be specially qualified to pass on 865-1 valuation of taxable property. The board of equalization shall 865-2 consist of four members with not more than one member being a 865-3 resident in any one city in the district, unless the board finds 865-4 that it cannot appoint from one or more of the cities a qualified 865-5 member who will serve on the board of equalization. A majority of 865-6 the board of equalization constitutes a quorum. General laws 865-7 applicable to water control and improvement districts with 865-8 reference to tax assessors and collectors and boards of 865-9 equalization apply to the district except as otherwise provided in 865-10 this chapter. 865-11 (b) The board may enter into a contract with a city within 865-12 the district under which the city will assess the property in the 865-13 city for taxes, equalize the assessed valuations of the property, 865-14 and prepare the tax rolls covering the property, provided that the 865-15 city assesses its valuations on the same ratio of actual value as 865-16 the district. If such a contract is made, the board shall, 865-17 nevertheless, appoint the board of equalization as provided in 865-18 Subsection (a) and the board of equalization shall examine the 865-19 rolls prepared under the contract, make further investigation and 865-20 provide for hearings, and make the revisions in assessed valuations 865-21 as the board considers necessary so that the taxable property in 865-22 all cities contained in the district is valued uniformly. 865-23 (c) The board may also contract with a city in the district 865-24 for the collection of district taxes levied on taxable property in 865-25 and adjacent to the city and within the district or may contract 865-26 with a county for collection of taxes in the part of the district 866-1 within the county. 866-2 (d) All taxes levied by the board are due and payable on the 866-3 first day of October of the year in which the taxes are levied and 866-4 shall be paid on or before January 31 of the following year. 866-5 (e) All taxes that have not been paid by the last day of 866-6 January shall become delinquent on the first day of February of 866-7 each year, and the delinquent taxes shall constitute a lien on the 866-8 property as provided by Section 59, Article XVI, Texas 866-9 Constitution, although the owner is unknown or the property is 866-10 listed in the name of a person who is not the actual owner, or 866-11 although the ownership is changed. 866-12 (f) Each year that taxes are delinquent a penalty equal to 866-13 six percent of the amount of the taxes shall be added to the total 866-14 amount due. 866-15 (g) The board may adopt a split tax payment plan to conform 866-16 to the plan in effect in a city with which the district makes a tax 866-17 equalization and collection contract, and the board shall make the 866-18 split tax payment plan effective in any other city contained in the 866-19 district on request of the governing body of the city. 866-20 (h) General laws applicable to water control and improvement 866-21 districts with reference to levy, assessment, and collection of ad 866-22 valorem taxes and to the enforced collection of delinquent taxes 866-23 apply to the district. 866-24 Sec. 279.028. ADDITIONAL POWERS. (a) The board may provide 866-25 for the study, correcting, and control of both artificial and 866-26 natural pollution of all water in and to flow into a reservoir 867-1 owned by the district, may adopt and promulgate all reasonable 867-2 regulations to secure, maintain, and preserve the sanitary 867-3 condition of all water in and to flow into a reservoir owned by the 867-4 district, to prevent the waste or the unauthorized use of the 867-5 water, and to protect the reservoir from the inflow of salt and 867-6 other chemicals, and may regulate residence, hunting, fishing, 867-7 boating, and camping, and all recreational and business privileges, 867-8 along or around the reservoir or a stream contributing water to its 867-9 reservoir or a body of land or easement owned by the district. 867-10 (b) The district may prescribe reasonable penalties for the 867-11 breach of a rule or regulation of the district, which penalties 867-12 shall not exceed a fine of more than $200, imprisonment for not 867-13 more than 30 days, or both a fine and imprisonment. The penalties 867-14 are in addition to any other penalties provided by the laws of the 867-15 state and may be enforced by complaints filed in the appropriate 867-16 court of jurisdiction. A rule or regulation that provides a 867-17 penalty for the violation of a rule or a regulation is not 867-18 effective or enforceable unless the district has published a 867-19 substantive statement of the particular rule or regulation and the 867-20 penalty for its violation once a week for two consecutive weeks in 867-21 the county in which the reservoir is situated or in any county in 867-22 which it is partly situated. The substantive statement must be as 867-23 condensed as possible to afford sufficient notice of the act 867-24 forbidden by the rule or regulation. A single notice may embrace a 867-25 number of rules or regulations. The notice must state that breach 867-26 of the rule or regulation will subject the violator to a penalty 868-1 and that the full text of the rule or regulation is on file in the 868-2 principal office of the district, where it may be read by any 868-3 interested person. Five days after the second publication of the 868-4 required notice, the rule or regulation shall be in effect, and 868-5 ignorance of the rule or regulation does not constitute a defense 868-6 to a prosecution for the enforcement of a penalty. The courts 868-7 shall take judicial notice of rules and regulations authorized by 868-8 this subsection, and the rules and regulations shall be considered 868-9 similar in nature to a valid penal ordinance of a city. 868-10 (c) The district may employ and constitute its own peace 868-11 officers. An officer of the district or another duly constituted 868-12 peace officer may make arrests when necessary to prevent or abate 868-13 the commission of an offense against the rules or regulations of 868-14 the district or state laws if the offense or threatened offense 868-15 occurs on land, water, or easement owned or controlled by the 868-16 district. An authorized officer may make an arrest at any place 868-17 where an offense is being committed involving injury or detriment 868-18 to any property owned or controlled by the district. 868-19 (d) Except as otherwise provided in this chapter, the 868-20 district is vested with all the rights, powers, and privileges 868-21 conferred by the general laws of the state applicable to water 868-22 control and improvement districts created under authority of 868-23 Section 59, Article XVI, Texas Constitution. 868-24 Sec. 279.029. RECREATIONAL FACILITIES. The district may 868-25 establish or otherwise provide for public parks and recreation 868-26 facilities and may acquire land for those purposes. No money 869-1 received from taxation or from bonds payable wholly or partially 869-2 from taxation shall be used to provide for the parks or facilities 869-3 nor shall the right of eminent domain be extended for such 869-4 purposes. 869-5 Sec. 279.030. CONFLICTS. Nothing in this chapter shall be 869-6 interpreted as repealing or modifying: 869-7 (1) the law creating the Brazos River Authority, 869-8 amendments to the law, or supplemental laws, including the master 869-9 plan previously adopted by the Brazos River Authority; or 869-10 (2) Section 11.024, which provides for priorities of 869-11 the use of water. 869-12 CHAPTER 280. WHITE RIVER MUNICIPAL WATER DISTRICT 869-13 Sec. 280.001. CREATION. (a) A conservation and reclamation 869-14 district to be known as the "White River Municipal Water District" 869-15 is created. The district is a governmental agency and a body 869-16 politic and corporate. 869-17 (b) The district is created under and is essential to 869-18 accomplish the purposes of Section 59, Article XVI, Texas 869-19 Constitution. 869-20 Sec. 280.002. DEFINITIONS. In this chapter: 869-21 (1) "Board" means the board of directors of the 869-22 district. 869-23 (2) "Director" means a member of the board. 869-24 (3) "District" means the White River Municipal Water 869-25 District. 869-26 Sec. 280.003. TERRITORY. The district contains all of the 870-1 territory contained in the boundaries of the city of Spur in 870-2 Dickens County, the cities of Crosbyton and Ralls in Crosby County, 870-3 and the city of Post in Garza County, as the boundaries of each 870-4 city are set forth in ordinances passed before May 15, 1957; 870-5 provided, however, that no invalidity of any of those ordinances or 870-6 the fixing of the boundaries as set out in those ordinances shall 870-7 affect the boundaries of the territory contained in the district; 870-8 the legislature finds and determines that all of the territory and 870-9 taxable property contained within the boundaries set forth in the 870-10 ordinances will benefit from the works and improvements of the 870-11 district and that the territory described in the ordinances shall 870-12 be contained within the district whether lawfully contained within 870-13 any of the cities or not. 870-14 Sec. 280.004. BOARD OF DIRECTORS. (a) All powers of the 870-15 district shall be exercised by a board of directors. Each director 870-16 serves for a term of two years. 870-17 (b) In December of each year the governing body of each city 870-18 contained in the district shall appoint a director or directors to 870-19 succeed the director or directors from the city whose term or terms 870-20 are about to expire. Any vacancy shall be filled for the unexpired 870-21 term by the governing body of the appropriate city. Three 870-22 directors shall be appointed by the governing body of each city 870-23 contained in the district, and each director shall reside in the 870-24 city from which the director is appointed. 870-25 (c) Each director serves for a term of office as provided by 870-26 this section and until a successor is appointed and has qualified. 871-1 (d) A director must reside in and own taxable property in 871-2 the city from which the director is appointed. A member of a 871-3 governing body of a city or an employee of a city is not eligible 871-4 to serve as a director. 871-5 (e) A director shall subscribe the constitutional oath of 871-6 office and shall give bond for the faithful performance of the 871-7 director's duties in the amount of $5,000, the cost of which shall 871-8 be paid by the district. 871-9 (f) A majority of the members of the board constitutes a 871-10 quorum. 871-11 (g) If a director moves from the city from which the 871-12 director is appointed or otherwise ceases to be a director, the 871-13 governing body of the city shall appoint a successor director for 871-14 the unexpired term. 871-15 Sec. 280.005. DIRECTOR FEES. (a) Each director is entitled 871-16 to receive a fee not to exceed $20 for attending each meeting of 871-17 the board; provided, however, that no more than $40 is paid to a 871-18 director for meetings held in any one calendar month. 871-19 (b) Each director is entitled to receive a fee not to exceed 871-20 $20 per day for each day devoted to the business of the district 871-21 and reimbursement for actual expenses incurred in attending to 871-22 district business if such service and expense are expressly 871-23 approved by the board. 871-24 Sec. 280.006. OFFICERS; EMPLOYEES; SEAL. (a) The board 871-25 shall elect from among its members a president and a vice president 871-26 of the district, and other officers the board considers necessary. 872-1 (b) The president is the chief executive officer of the 872-2 district and the presiding officer of the board and has the same 872-3 right to vote as any other director. 872-4 (c) The vice president shall perform all duties and exercise 872-5 all powers conferred by this chapter on the president when the 872-6 president is absent or fails or declines to act, except the 872-7 president's right to vote. 872-8 (d) The board shall appoint a secretary and a treasurer who 872-9 may or may not be members of the board, and it may combine those 872-10 offices. The treasurer shall give bond in an amount required by 872-11 the board. The bond shall be conditioned on the treasurer's 872-12 faithfully accounting for all funds that come into the person's 872-13 custody as treasurer of the district. 872-14 (e) The board shall appoint necessary engineers, attorneys, 872-15 and other employees and shall employ a general manager. The power 872-16 to employ and discharge employees may be conferred on the general 872-17 manager. 872-18 (f) The board shall adopt a seal for the district. 872-19 Sec. 280.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES. 872-20 (a) Other territory situated within the counties of Dickens, 872-21 Crosby, and Garza may be annexed to the district as provided by 872-22 this section. 872-23 (b) A petition for annexation must: 872-24 (1) be signed by 50 or a majority, whichever number is 872-25 less, of the qualified voters of the territory to be annexed who 872-26 own taxable property and who have duly rendered the same to the 873-1 city, if situated within a city or town, or county for taxation; 873-2 (2) be filed with the board; and 873-3 (3) describe the territory to be annexed by metes and 873-4 bounds or otherwise unless the territory is the same as that 873-5 contained in a city or town, in which event it shall be sufficient 873-6 to state that the territory to be annexed is that contained within 873-7 the city or town. 873-8 (c) If the board finds that the petition complies with and 873-9 is signed by the number of qualified persons required under 873-10 Subsection (b), that the annexation would be in the interest of the 873-11 territory to be annexed and the district, and that the district 873-12 will be able to supply water to the territory to be annexed or 873-13 cause water to be supplied to the territory to be annexed, the 873-14 board shall adopt a resolution stating the conditions, if any, 873-15 under which the territory may be annexed to the district and 873-16 requesting the commission to annex the territory to the district. 873-17 The resolution shall be conclusive of the legal sufficiency of the 873-18 petition and the qualifications of the signers. A certified copy 873-19 of the resolution and the petition shall be filed with the 873-20 commission. 873-21 (d) The commission shall adopt a resolution declaring its 873-22 intention to call an election in the territory to be annexed for 873-23 the purpose of submitting the proposition of whether the territory 873-24 shall be annexed to the district. The commission shall set a time 873-25 and place for a hearing to be held by the commission on the 873-26 question of whether the territory to be annexed will benefit from 874-1 the improvements, works, and facilities then owned or operated or 874-2 contemplated to be owned or operated by the district or will 874-3 benefit from the other functions of the district. Railroad 874-4 right-of-way that is not situated within the defined limits of an 874-5 incorporated city or town will not benefit from the improvements, 874-6 works, and facilities that the district is authorized to construct. 874-7 Railroad right-of-way may not be annexed to the district unless the 874-8 right-of-way is contained within the limits of an incorporated city 874-9 or town that has been annexed to the district. 874-10 (e) Notice of the adoption of the resolution stating the 874-11 time and place of the hearing addressed to the citizens and owners 874-12 of property in the territory to be annexed shall be published one 874-13 time in a newspaper designated by the commission at least 10 days 874-14 before the date of the hearing. The notice must describe the 874-15 territory to be annexed in the same manner in which it is required 874-16 or permitted by this chapter to be described in the petition. 874-17 (f) All interested persons may appear at the hearing and 874-18 offer evidence for or against the intended annexation. The hearing 874-19 may proceed in the order and under the rules as may be prescribed 874-20 by the commission and may be recessed from time to time. If, at 874-21 the conclusion of the hearing, the commission finds that lands in 874-22 the territory to be annexed will benefit from the present or 874-23 contemplated improvements, works, or facilities of the district, 874-24 the commission shall adopt a resolution calling an election in the 874-25 territory to be annexed stating the date of and the place or places 874-26 for holding the election and appointing a presiding judge for each 875-1 voting place, who shall appoint the necessary assistant judges and 875-2 clerks to assist in holding the election. 875-3 (g) Notice of the election, stating the date of the 875-4 election, the proposition to be voted on, and the conditions under 875-5 which the territory may be annexed, or making reference to the 875-6 resolution of the board for that purpose, and the place or places 875-7 for holding the election, shall be published one time in a 875-8 newspaper designated by the commission at least 10 days before the 875-9 date set for the election. 875-10 (h) Only qualified electors who reside in the territory to 875-11 be annexed may vote in the election. Returns of the election shall 875-12 be made to the commission. 875-13 (i) The commission shall canvass the returns of the election 875-14 and adopt an order declaring the results. If the order shows that 875-15 a majority of the votes cast are in favor of annexation, the 875-16 commission shall annex the territory to the district, and the 875-17 annexation is incontestable except in the manner and within the 875-18 time for contesting elections under the Election Code. A certified 875-19 copy of the order shall be recorded in the deed records of the 875-20 county in which the annexed territory is situated. 875-21 (j) In calling the election on the proposition for the 875-22 annexation of territory, the commission may include as a part of 875-23 the same proposition a proposition for: 875-24 (1) the assumption of the territory's part of the 875-25 tax-supported bonds of the district then outstanding and those 875-26 previously voted but not yet sold; and 876-1 (2) the levy of an ad valorem tax on taxable property 876-2 in the territory to be annexed along with the tax in the rest of 876-3 the district for the payment of the bonds. 876-4 (k) After territory is added to the district, the board may 876-5 call an election over the entire district for the purpose of 876-6 determining whether the entire district as enlarged shall assume 876-7 the tax-supported bonds then outstanding and those voted but not 876-8 yet sold and whether an ad valorem tax shall be levied on all 876-9 taxable property within the district as enlarged for the payment of 876-10 the bonds, unless the proposition has been voted along with the 876-11 annexation election and becomes lawfully binding on the territory 876-12 annexed. The election shall be called and held in the same manner 876-13 as elections for the issuance of bonds as provided by this chapter. 876-14 (l) If no newspaper is published in the territory to be 876-15 annexed, the notices required by this section shall be posted at 876-16 three public places in the territory. 876-17 Sec. 280.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY. 876-18 (a) Territory annexed to a city contained in the district may be 876-19 annexed to the district as provided by this section. 876-20 (b) At any time after final passage of an ordinance or 876-21 resolution annexing territory to a city contained in the district, 876-22 the board may issue a notice of a hearing on the question of 876-23 annexing the territory or any part of the territory. The notice is 876-24 sufficient if it states the date and place of the hearing and: 876-25 (1) describes the area proposed to be annexed; or 876-26 (2) makes reference to the annexation ordinance of the 877-1 city. 877-2 (c) The notice must be published one time in a newspaper 877-3 having general circulation in the city that made the annexation. 877-4 The publication must be at least 10 days before the date set for 877-5 the hearing. 877-6 (d) If, at the hearing, the board finds that the territory 877-7 to be annexed will benefit from the water supply afforded or to be 877-8 afforded by the district, the board shall adopt a resolution 877-9 annexing the territory to the district. 877-10 Sec. 280.009. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY. 877-11 If the territory of a city is annexed to the district, the 877-12 governing body of the city shall appoint three directors. The term 877-13 of one appointee shall expire on the following May 31 and the term 877-14 of the other two appointees shall expire on May 31 a year later. 877-15 Thereafter the directors shall be appointed as provided in Section 877-16 280.004. 877-17 Sec. 280.010. WATER APPROPRIATION PERMITS. The district may 877-18 obtain appropriation permits from the commission through 877-19 appropriate hearings as provided by Chapter 11. Thereafter the 877-20 permit, either on application of the district or on the initiative 877-21 of the commission, may be modified by the commission, after an 877-22 appropriate hearing, to increase or decrease the amount of water 877-23 that may be appropriated, and after considering the amount of water 877-24 that may be stored by the district to meet fluctuating demands, 877-25 either on application by the district or by its own action, the 877-26 commission shall redetermine the maximum amount of water that the 878-1 district may store in its reservoir. In making this determination, 878-2 the commission shall consider the needs of the cities and others 878-3 that purchase water from the district. 878-4 Sec. 280.011. AUTHORITY TO IMPOUND AND TRANSPORT WATER; 878-5 COMMISSION APPROVAL. (a) The district may acquire or construct, 878-6 within or outside the boundaries of the district but not outside 878-7 any county in which the district is located, dams and all works, 878-8 plants, and other facilities necessary or useful for the purpose of 878-9 impounding, processing, and transporting water to cities and others 878-10 for municipal, domestic, industrial, and mining purposes. 878-11 (b) The size of a dam and reservoir shall be determined by 878-12 the board, taking into consideration probable future increases in 878-13 water requirements. 878-14 (c) The size of a dam shall not be limited by the amount of 878-15 water initially authorized by the commission or a predecessor 878-16 agency of the commission to be impounded in the reservoir. 878-17 (d) A dam or other facility for impounding water may not be 878-18 constructed until the plan for the project is approved by the 878-19 commission. 878-20 Sec. 280.012. ACQUISITION AND DISPOSITION OF PROPERTY. 878-21 (a) The district may acquire land, within or outside the 878-22 boundaries of the district but not outside any county in which the 878-23 district is located, and may construct, lease, or otherwise acquire 878-24 all works, plants, and other facilities necessary or useful for the 878-25 purpose of diverting, further impounding or storing, processing, 878-26 and transporting water to cities and others for municipal, 879-1 domestic, industrial, and mining purposes. 879-2 (b) Subject to the terms of any deed of trust issued by the 879-3 district, the district may sell, trade, or otherwise dispose of any 879-4 real or personal property determined by the board not to be needed 879-5 for district purposes. 879-6 (c) The district may not develop or otherwise acquire 879-7 underground sources of water. 879-8 Sec. 280.013. EMINENT DOMAIN. (a) For the purpose of 879-9 carrying out any power or authority conferred by this chapter, the 879-10 district may acquire by condemnation in the manner provided by 879-11 Chapter 21, Property Code, the fee simple title to land and other 879-12 property and easements, including land needed for the reservoir and 879-13 dam and flood easements above the probable high-water line around 879-14 the reservoir, within or outside the boundaries of the district but 879-15 not outside any county in which the district is located. 879-16 (b) The district is a municipal corporation within the 879-17 meaning of Section 21.021(c), Property Code, except that the 879-18 district may not condemn any property owned by any other political 879-19 subdivision, city, or town. 879-20 (c) As against persons, firms, and corporations, or their 879-21 receivers or trustees, who have the power of eminent domain, the 879-22 fee title may not be condemned, and the district may condemn only 879-23 an easement. 879-24 (d) In accordance with the provisions of this section, the 879-25 amount and character of interest in land, other property, and 879-26 easements to be acquired shall be determined by the board. 880-1 (e) The district has the power conferred by Section 49.221 880-2 with reference to making surveys and attending to other business of 880-3 the district. 880-4 (f) If the district, in the exercise of the power of eminent 880-5 domain or power of relocation or any other power granted under this 880-6 chapter, makes necessary the relocation, raising, rerouting, 880-7 changing the grade, or altering the construction of any highway, 880-8 railroad, electric transmission line, telephone or telegraph 880-9 properties and facilities, or pipelines, all such necessary 880-10 relocation, raising, rerouting, changing of grade, or alteration of 880-11 construction shall be accomplished at the sole expense of the 880-12 district. 880-13 Sec. 280.014. CONTRACTS; BIDS. A construction contract 880-14 requiring an expenditure of more than $25,000 may only be made 880-15 after publication of a notice to bidders once each week for two 880-16 weeks before the contract is awarded. The notice is sufficient if 880-17 it states the time and location the bids will be opened, states the 880-18 general nature of the work to be done or the material, equipment, 880-19 or supplies to be purchased, and states where and on what terms 880-20 copies of the plans and specifications may be obtained. The 880-21 publication shall be in a newspaper published in the district and 880-22 designated or approved by the board. 880-23 Sec. 280.015. ISSUANCE OF BONDS. (a) For the purpose of 880-24 providing a source of water supply for cities and other users for 880-25 municipal, domestic, industrial, mining, and oil flooding purposes 880-26 as authorized by this chapter and for the purpose of carrying out 881-1 any other power or authority conferred by this chapter, the 881-2 district may issue negotiable bonds to be payable from such 881-3 revenues or taxes, or both revenues and taxes, of the district as 881-4 are pledged by resolution of the board. Pending the issuance of 881-5 definitive bonds, the board may authorize the delivery of 881-6 negotiable interim bonds or notes that are eligible for exchange or 881-7 substitution by the definitive bonds. 881-8 (b) Bonds must be authorized by resolution of the board. 881-9 The bonds shall be issued in the name of the district, signed by 881-10 the president or vice president, and attested by the secretary and 881-11 shall bear the seal of the district. The signatures of the 881-12 president or of the secretary or of both may be printed or 881-13 lithographed on the bonds if authorized by the board, and the seal 881-14 of the district may be impressed on the bonds or may be printed or 881-15 lithographed on the bonds. 881-16 (c) Bonds must mature, serially or otherwise, in not to 881-17 exceed 40 years and may be sold at a price and under terms 881-18 determined by the board to be the most advantageous reasonably 881-19 obtainable, provided that the interest cost to the district, 881-20 including the discount, if any, calculated by use of standard bond 881-21 interest tables currently in use by insurance companies and 881-22 investment houses does not exceed six percent per year. Within the 881-23 discretion of the board, bonds may be made callable prior to 881-24 maturity at such times and prices as may be prescribed in the 881-25 resolution authorizing the bonds and may be made registrable as to 881-26 principal or as to both principal and interest. 882-1 (d) Bonds may be issued in more than one series and from 882-2 time to time as required for carrying out the purposes of this 882-3 chapter. 882-4 (e) Bonds may be secured by a pledge of all or part of the 882-5 net revenues of the district, of the net revenues of one or more 882-6 contracts made before or after the bonds are issued, or of other 882-7 revenues or income specified by resolution of the board or in the 882-8 trust indenture. A pledge may reserve the right, under conditions 882-9 specified in the pledge, to issue additional bonds that will be on 882-10 a parity with or subordinate to the bonds being issued. In this 882-11 section, "net revenues" means the gross revenues and income of the 882-12 district from all sources less the amount necessary to pay the cost 882-13 of maintaining and operating the district and its properties. 882-14 (f) The district may issue bonds payable from ad valorem 882-15 taxes to be levied on all taxable property in the district and may 882-16 issue bonds secured by and payable from both such taxes and the 882-17 revenues of the district. If bonds are issued payable wholly or 882-18 partially from ad valorem taxes, the board shall levy a tax 882-19 sufficient to pay the bonds and the interest on the bonds as the 882-20 bonds and interest become due. The rate of the tax for any year 882-21 may be set after giving consideration to the money received from 882-22 the pledged revenues available for payment of principal and 882-23 interest to the extent and in the manner permitted by the 882-24 resolution authorizing the issuance of the bonds. 882-25 (g) If bonds payable wholly from revenues are issued, the 882-26 board shall set, and from time to time revise, rates of 883-1 compensation for water sold and services rendered by the district 883-2 sufficient to pay the expense of operating and maintaining the 883-3 facilities of the district and to pay the bonds as they mature and 883-4 the interest as it accrues and to maintain the reserve and other 883-5 funds as provided in the resolution authorizing the bonds. If 883-6 bonds payable partially from revenues are issued, the board shall 883-7 set, and from time to time revise, rates of compensation for water 883-8 sold and services rendered by the district sufficient to assure 883-9 compliance with the resolution authorizing the bonds. 883-10 (h) From the proceeds of the sale of the bonds, the district 883-11 may set aside an amount for the payment of interest expected to 883-12 accrue during construction and for a reserve interest and sinking 883-13 fund, and such provision may be made in the resolution authorizing 883-14 the bonds. Proceeds from the sale of the bonds may also be used 883-15 for the payment of all expenses necessarily incurred in 883-16 accomplishing the purposes for which the district is created, 883-17 including the expenses of issuing and selling the bonds. The 883-18 proceeds from the sale of the bonds may be temporarily invested in 883-19 direct obligations of the United States government maturing in not 883-20 more than one year from the date of investment. 883-21 (i) In the event of a default or a threatened default in the 883-22 payment of principal or interest on bonds payable wholly or 883-23 partially from revenues, any court of competent jurisdiction may, 883-24 on petition of the holders of outstanding bonds, appoint a receiver 883-25 with authority to collect and receive all income of the district 883-26 except taxes, employ and discharge agents and employees of the 884-1 district, take charge of the district's funds on hand (except funds 884-2 received from taxes, unless commingled), and manage the proprietary 884-3 affairs of the district without consent or hindrance by the board. 884-4 The receiver may also be authorized to sell or make contracts for 884-5 the sale of water or renew the contracts with the approval of the 884-6 court appointing the receiver. The court may vest the receiver 884-7 with other powers and duties the court finds necessary for the 884-8 protection of the holders of the bonds. The resolution authorizing 884-9 the issuance of the bonds or the trust indenture securing them may 884-10 limit or qualify the rights of less than all of the outstanding 884-11 bonds payable from the same source to institute or prosecute any 884-12 litigation affecting the district's property or income. 884-13 Sec. 280.016. REFUNDING BONDS. (a) The district may issue 884-14 refunding bonds for the purpose of refunding outstanding bonds 884-15 authorized by this chapter and interest on the bonds. Refunding 884-16 bonds may be issued to refund more than one series of outstanding 884-17 bonds and combine the pledges for the outstanding bonds for the 884-18 security of the refunding bonds, and refunding bonds may be secured 884-19 by other or additional revenues and mortgage liens. 884-20 (b) The provisions of this chapter regarding the issuance by 884-21 the district of other bonds, their security, their approval by the 884-22 attorney general, and the remedies of the holders shall be 884-23 applicable to refunding bonds. Refunding bonds shall be registered 884-24 by the comptroller on surrender and cancellation of the bonds to be 884-25 refunded, but in lieu of that procedure, the resolution authorizing 884-26 the issuance of the refunding bonds may provide that the refunding 885-1 bonds shall be sold and the proceeds of the sale deposited in the 885-2 bank where the original bonds are payable, in which case the 885-3 refunding bonds may be issued in an amount sufficient to pay the 885-4 principal of and the interest on the original bonds to their option 885-5 date or maturity date, and the comptroller shall register the 885-6 refunding bonds without concurrent surrender and cancellation of 885-7 the original bonds. 885-8 Sec. 280.017. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE 885-9 LIEN. (a) Bonds, including refunding bonds, authorized by this 885-10 chapter that are not payable wholly from ad valorem taxes may be 885-11 additionally secured by a trust indenture under which the trustee 885-12 may be a bank with trust powers located either within or outside 885-13 the state. The bonds may, within the discretion of the board, be 885-14 additionally secured by a deed of trust or mortgage lien on 885-15 physical properties of the district and all franchises, easements, 885-16 water rights and appropriation permits, leases and contracts, and 885-17 rights appurtenant to the properties, vesting in the trustee power 885-18 to sell the properties for the payment of the indebtedness, power 885-19 to operate the properties, and all other powers and authority for 885-20 the further security of the bonds. 885-21 (b) The trust indenture, regardless of the existence of a 885-22 deed of trust or mortgage lien on the properties, may: 885-23 (1) contain any provisions prescribed by the board for 885-24 the security of the bonds and the preservation of the trust estate; 885-25 (2) make provision for amendment or modification of 885-26 the trust indenture and the issuance of bonds to replace lost or 886-1 mutilated bonds; 886-2 (3) condition the right to expend district money or 886-3 sell district property upon approval of a registered professional 886-4 engineer selected as provided in the trust indenture; and 886-5 (4) make provision for the investment of funds of the 886-6 district. 886-7 (c) A purchaser under a sale under a deed of trust lien, 886-8 where one is given, is the absolute owner of the properties, 886-9 facilities, and rights purchased and has the right to maintain and 886-10 operate the properties, facilities, and rights. 886-11 Sec. 280.018. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION. 886-12 (a) Bonds payable wholly or partially from ad valorem taxes, 886-13 except refunding bonds, may not be issued unless authorized by an 886-14 election at which only the qualified voters who reside in the 886-15 district are allowed to vote and a majority of the votes cast in 886-16 each city contained in the district are in favor of the issuance of 886-17 the bonds. If a majority of the votes cast in any city contained 886-18 in the district are against the issuance of the bonds, the board 886-19 may adopt a resolution detaching the territory of the city from the 886-20 district if the board finds that it is in the best interest of the 886-21 district to issue bonds payable wholly or partially from taxes, but 886-22 no territory shall be detached from the district after the issuance 886-23 of bonds that are payable from revenues or taxes or both. Bonds 886-24 not payable wholly or partially from ad valorem taxes may be issued 886-25 without an election. 886-26 (b) An election for the authorization of bonds may be called 887-1 by the board without a petition. The resolution calling the 887-2 election must specify the time and places of holding the election, 887-3 the purpose for which the bonds are to be issued, the maximum 887-4 amount of the bonds, the maximum maturity of the bonds, the form of 887-5 the ballot, and the presiding judge for each voting place. The 887-6 presiding judge serving at each voting place shall appoint one 887-7 assistant judge and at least two clerks to assist in holding the 887-8 election. Notice of the election shall be given by publishing a 887-9 substantial copy of the notice in a newspaper published in each 887-10 city contained in the district for two consecutive weeks. The 887-11 first publication must be at least 21 days before the date of the 887-12 election. In a city in which no newspaper is published, notice 887-13 shall be given by posting a copy of the resolution in three public 887-14 places. 887-15 (c) The returns of the election shall be made to and 887-16 canvassed by the board. 887-17 (d) Elections held under this section shall be governed by 887-18 the Election Code except as otherwise provided by this chapter. 887-19 Sec. 280.019. BOND APPROVAL AND REGISTRATION. After bonds, 887-20 including refunding bonds, are authorized by the district, the 887-21 bonds and the record relating to their issuance shall be submitted 887-22 to the attorney general for examination as to the validity of the 887-23 bonds. If the bonds recite that they are secured by a pledge of 887-24 the proceeds of a contract previously made between the district and 887-25 a city or other governmental agency, authority, or district, a copy 887-26 of the contract and the proceedings of the city or other 888-1 governmental agency, authority, or district authorizing the 888-2 contract shall also be submitted to the attorney general. If the 888-3 bonds have been authorized and any contracts have been made in 888-4 accordance with the constitution and laws of the state, the 888-5 attorney general shall approve the bonds and the contracts and the 888-6 bonds then shall be registered by the comptroller. After their 888-7 approval, the bonds and the contracts, if any, are valid and 888-8 binding and are incontestable for any cause. 888-9 Sec. 280.020. CONTRACTS WITH CITIES AND OTHERS. The 888-10 district may enter into contracts with cities and others for 888-11 supplying water to them. The district may also contract with a 888-12 city for the rental or leasing of, or for the operation of, the 888-13 water production, water supply, and water filtration or 888-14 purification and water supply facilities of the city for the 888-15 consideration the district and the city agree on. The contract may 888-16 be on the terms and for the time as the parties may agree, and the 888-17 contract may provide that it shall continue in effect until bonds 888-18 specified in the contract and refunding bonds issued in lieu of 888-19 those bonds are paid. 888-20 Sec. 280.021. DISTRICT DEPOSITORY. (a) The board shall 888-21 designate one or more banks within the district to serve as 888-22 depository for the funds of the district. All funds of the 888-23 district shall be deposited in the depository bank or banks, except 888-24 that funds pledged to pay bonds may be deposited with the trustee 888-25 bank named in the trust agreement and except that funds shall be 888-26 remitted to the bank of payment for the payment of principal of and 889-1 interest on bonds. To the extent that funds in the depository 889-2 banks and the trustee bank are not insured by the Federal Deposit 889-3 Insurance Corporation, the funds shall be secured in the manner 889-4 provided by law for the security of county funds. 889-5 (b) Before designating a depository bank or banks, the board 889-6 shall issue a notice stating the time and place the board will meet 889-7 to designate the depository or depositories and inviting the banks 889-8 in the district to submit applications to be designated 889-9 depositories. The notice must be published one time in a newspaper 889-10 or newspapers published in the district and specified by the board. 889-11 (c) At the time stated in the notice, the board shall 889-12 consider the applications and the management and condition of the 889-13 banks filing them and shall designate as depositories the bank or 889-14 banks that offer the most favorable terms and conditions for the 889-15 handling of the funds of the district and that the board finds have 889-16 proper management and are in condition to warrant the handling of 889-17 district funds. Membership on the board of an officer or director 889-18 of a bank does not disqualify that bank from being designated as a 889-19 depository. 889-20 (d) If no applications are received by the time stated in 889-21 the notice, the board shall designate a bank or banks within or 889-22 outside the district on terms and conditions the board determines 889-23 are advantageous to the district. 889-24 (e) The term of service for depositories shall be prescribed 889-25 by the board. 889-26 Sec. 280.022. WATER APPROPRIATION PERMITS; ACQUISITION OF 890-1 STORAGE CAPACITY AND WATER. The district may acquire water 890-2 appropriation permits from owners of permits. The district may 890-3 lease or acquire rights in and to storage and storage capacity in 890-4 any reservoir constructed or to be constructed by any person, firm, 890-5 corporation, or public agency or from the United States government 890-6 or any of its agencies. 890-7 Sec. 280.023. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE 890-8 DEPOSITS. (a) Bonds of the district are legal and authorized 890-9 investments for banks, savings banks, trust companies, building and 890-10 loan associations, savings and loan associations, insurance 890-11 companies, fiduciaries, trustees, and guardians and for the sinking 890-12 funds of cities, towns, villages, counties, school districts, or 890-13 other political corporations or subdivisions of the state. 890-14 (b) The bonds are eligible to secure the deposit of all 890-15 public funds of the state and all public funds of cities, towns, 890-16 villages, counties, school districts, or other political 890-17 corporations or subdivisions of the state. Bonds are lawful and 890-18 sufficient security for the deposits to the extent of their value 890-19 when accompanied by all unmatured coupons. 890-20 Sec. 280.024. BONDS EXEMPT FROM TAXATION. The 890-21 accomplishment of the purposes stated in this chapter is for the 890-22 benefit of the people of the state and for the improvement of their 890-23 properties and industries, and the district, in carrying out the 890-24 purposes of this chapter will be performing an essential public 890-25 function under Section 59, Article XVI, Texas Constitution. The 890-26 district may not be required to pay any tax or assessment on the 891-1 project or any part of the project, and the bonds issued under this 891-2 chapter and the transfer of and income from the bonds, including 891-3 profits made on the sale of the bonds, shall at all times be free 891-4 from taxation within the state. 891-5 Sec. 280.025. TAX ROLLS. (a) The tax rolls of the cities 891-6 situated within the district as created and within annexed 891-7 territory shall constitute the tax rolls of the district until 891-8 assessments and tax rolls are made by the district. 891-9 (b) Before the sale and delivery of district bonds that are 891-10 payable wholly or partially from ad valorem taxes, the board shall 891-11 appoint a tax assessor and collector and a board of equalization 891-12 and shall cause taxes to be assessed, valuations to be equalized, 891-13 and tax rolls to be prepared. General laws applicable to water 891-14 control and improvement districts with reference to tax assessors 891-15 and collectors, boards of equalization, tax rolls, and the levy and 891-16 collection of taxes and delinquent taxes shall be applicable to the 891-17 district, except that the board of equalization, to be appointed 891-18 each year by the board, shall consist of one member residing in 891-19 each city contained in the district. 891-20 Sec. 280.026. ADOPTION OF REGULATIONS; PENALTIES; 891-21 ENFORCEMENT. (a) The board may adopt and promulgate all 891-22 reasonable regulations to secure, maintain, and preserve the 891-23 sanitary condition of all water in and to flow into any reservoir 891-24 owned by the district to prevent the waste or unauthorized use of 891-25 water and to regulate residence, hunting, fishing, boating, and 891-26 camping and all recreational and business privileges along or 892-1 around any reservoir or any body of land or easement owned by the 892-2 district. 892-3 (b) The district may prescribe a reasonable penalty for the 892-4 breach of a regulation of the district, not to exceed a fine of 892-5 $200 or imprisonment for 30 days, or both the fine and 892-6 imprisonment. The penalty shall be in addition to any other 892-7 penalties provided by the laws of the state and may be enforced by 892-8 complaints filed in the appropriate court of jurisdiction; 892-9 provided, however, that no rule or regulation that provides a 892-10 penalty for a violation of the rule or regulation shall be in 892-11 effect, as to enforcement of the penalty, until five days after the 892-12 district has caused a substantive statement of the rule or 892-13 regulation and the penalty for the violation to be published once a 892-14 week for two consecutive weeks in the county in which the reservoir 892-15 is situated or in any county in which it is partly situated. The 892-16 substantive statement to be published must be as condensed as is 892-17 possible to afford sufficient notice as to the act forbidden by the 892-18 rule or regulation. A single notice may embrace any number of 892-19 regulations. The notice must provide the information that breach 892-20 of the regulation or regulations will subject the violator to the 892-21 imposition of a penalty. The notice must also state that the full 892-22 text of the regulations is on file in the principal office of the 892-23 district and may be read by any interested person. Five days after 892-24 the second publication of the notice required by this section, the 892-25 advertised regulation shall be in effect, and ignorance of the 892-26 regulation is not a defense to prosecution for the enforcement of a 893-1 penalty. After the required publication, the rules and regulations 893-2 authorized by this section shall judicially be known to the courts 893-3 and shall be considered similar in nature to a valid penal 893-4 ordinance of a city. 893-5 (c) A duly constituted peace officer may make arrests when 893-6 necessary to prevent or stop the commission of any offense against 893-7 the regulations of the district or against the laws of the state, 893-8 when the offense or threatened offense occurs on any land, water, 893-9 or easement owned or controlled by the district, or may make an 893-10 arrest at any place in the case of an offense involving injury or 893-11 detriment to any property owned or controlled by the district. 893-12 Sec. 280.027. PARKS AND RECREATION FACILITIES. The district 893-13 may establish or otherwise provide for public parks and recreation 893-14 facilities and may acquire land for such purposes within or outside 893-15 the district but not outside any county in which the district is 893-16 located; provided, however, that no money received from taxation or 893-17 from bonds payable wholly or partially from taxation may be used 893-18 for such purposes, and the right of eminent domain may not be 893-19 extended for such purposes. 893-20 Sec. 280.028. EFFECT ON PRIORITY OF WATER USE. Nothing in 893-21 this Act shall be interpreted as amending or repealing Section 893-22 11.024, which provides for priorities of the use of water. 893-23 SECTION 2. Subtitle A, Title 2, Water Code, is amended by 893-24 adding Chapter 9 to read as follows: 893-25 CHAPTER 9. TEXAS WATER POLICY COUNCIL 893-26 Sec. 9.001. DEFINITION. In this chapter: 894-1 (1) "Authority" means an entity listed in Section 894-2 9.010(b). 894-3 (2) "Board" means the governing body of an authority. 894-4 (3) "Commission" means the Texas Natural Resource 894-5 Conservation Commission. 894-6 (4) "Council" means the Texas Water Policy Council. 894-7 Sec. 9.002. CREATION AND MEMBERSHIP. (a) The council is 894-8 composed of seven members as follows: 894-9 (1) the chairman, or a board member designated by the 894-10 chairman, of the Texas Water Development Board; 894-11 (2) the chairman, or a commissioner designated by the 894-12 chairman, of the commission; 894-13 (3) the chairman, or a commissioner designated by the 894-14 chairman, of the Parks and Wildlife Commission; 894-15 (4) the commissioner of agriculture; and 894-16 (5) three members of the general public, appointed by 894-17 the governor. 894-18 (b) Council members may not delegate council participation 894-19 or council duties to staff. 894-20 Sec. 9.003. TERMS. (a) Except for the commissioner of 894-21 agriculture, council members who are officials of state agencies 894-22 serve terms as determined by the chairman of each agency. 894-23 (b) Council members who are members of the general public 894-24 serve staggered six-year terms with the term of one member expiring 894-25 August 31 of each odd-numbered year. 894-26 (c) Council members may be reappointed to serve additional 895-1 terms. 895-2 (d) A vacancy on the council shall be filled by appointment 895-3 by the original appointing authority for the unexpired term. 895-4 Sec. 9.004. OFFICERS OF THE COUNCIL. (a) The governor 895-5 shall appoint a council member as the chair of the council for a 895-6 two-year term expiring May 31 of each even-numbered year. 895-7 (b) The council shall have a secretary of the council who, 895-8 by virtue of the position, shall be a full-time employee of the 895-9 commission but shall serve at the pleasure of the council and be 895-10 accountable only to the council. 895-11 Sec. 9.005. COUNCIL STAFF. On request by the council, the 895-12 commission and the Texas Water Development Board shall provide any 895-13 staff other than the secretary of the council necessary to assist 895-14 the council in the performance of its duties. 895-15 Sec. 9.006. MEETINGS. (a) The council shall meet at least 895-16 once in each calendar quarter. Four members shall constitute a 895-17 quorum sufficient to conduct meetings and the business of the 895-18 council. 895-19 (b) The council is subject to Chapters 551 and 2001, 895-20 Government Code. 895-21 Sec. 9.007. COMPENSATION OF MEMBERS. (a) Members of the 895-22 council shall serve without compensation but may be reimbursed by 895-23 legislative appropriation for actual and necessary expenses related 895-24 to the performance of council duties. 895-25 (b) Reimbursements under Subsection (a) shall be subject to 895-26 the approval of the chair. 896-1 Sec. 9.008. POWERS AND DUTIES OF COUNCIL. (a) The council 896-2 shall: 896-3 (1) provide guidance on state surface water and 896-4 groundwater policy initiatives, including: 896-5 (A) clarifying groundwater management; 896-6 (B) providing flexibility and incentives for 896-7 water desalination, brush control, regionalization, weather 896-8 modification projects, and public-private partnerships relating to 896-9 water projects; 896-10 (C) financing of surface water and groundwater 896-11 projects; 896-12 (D) development of water conservation and 896-13 drought management projects; 896-14 (E) implementation of approved regional and 896-15 state water plans; 896-16 (F) conjunctive use and management of surface 896-17 water and groundwater; 896-18 (G) protection of environmental needs, including 896-19 instream flows, freshwater inflows, and fish and wildlife habitats; 896-20 (H) ensuring commonality of technical data and 896-21 information such as joint agency studies, freshwater inflow 896-22 recommendations, surface water and groundwater availability models, 896-23 and instream flow recommendations developed by the Parks and 896-24 Wildlife Department, the commission, and the Texas Water 896-25 Development Board; and 896-26 (I) encouraging the use of supplemental 897-1 environmental projects for water infrastructure needs and enhancing 897-2 the aquatic environment and habitat in enforcement proceedings at a 897-3 state agency or political subdivision; 897-4 (2) act as a policy liaison regarding the roles of, 897-5 the relationships among, and the ongoing duties of local, regional, 897-6 state, federal, and international water management entities, 897-7 including groundwater districts, river authorities and compacts, 897-8 regional water planning groups, and member agencies of the council; 897-9 (3) coordinate a unified state position on federal and 897-10 international water issues; 897-11 (4) act as an advocate for, and assist in the 897-12 prioritizing of, projects recommended by regional water planning 897-13 groups; and 897-14 (5) create a process for developing future groundwater 897-15 management standards for each aquifer. 897-16 (b) The council may not: 897-17 (1) regulate water use, water quality, or any other 897-18 aspect of water resource management; 897-19 (2) plan or construct water resource projects, or have 897-20 such projects planned or constructed; or 897-21 (3) grant or loan any funds for the construction of 897-22 water resource projects. 897-23 (c) The council shall evaluate the need for and, if 897-24 appropriate, develop a strategy for reorganizing or improving the 897-25 efficiency of local, regional, and state water management entities 897-26 and agencies. 898-1 Sec. 9.009. REPORT. Not later than December 1 of each 898-2 even-numbered year, the council shall submit a report to the 898-3 governor, lieutenant governor, and speaker of the house of 898-4 representatives and to the senate and house standing committees 898-5 with primary responsibility over water resource management and 898-6 financing. The report shall include findings of the council made 898-7 in the periodic reviews of authorities during the preceding 898-8 two-year period and any other findings and recommendations the 898-9 council considers necessary. 898-10 Sec. 9.010. REVIEW OF AUTHORITIES. (a) On a five-year 898-11 cycle, the council shall review authorities based on the 898-12 administrative policies provided by Section 9.012 and performance 898-13 standards described in Section 9.011. The reviews shall be 898-14 conducted of groups described in Subsection (b), with group 1 being 898-15 reviewed at the council's first quarterly meeting of the five-year 898-16 period and group 2 being reviewed at the council's third quarterly 898-17 meeting of the period. The council shall continue in numerical 898-18 order to review one group at every other quarterly meeting until 898-19 all ten groups have been reviewed and then shall recommence the 898-20 cycle. 898-21 (b) Authorities shall be reviewed under Subsection (a) in 898-22 the following groups: 898-23 (1) in group 1, Northeast Texas Municipal Water 898-24 District, Titus County Fresh Water Supply District No. 1, and 898-25 Franklin County Water District; 898-26 (2) in group 2, Angelina and Neches River Authority, 899-1 Lower Neches Valley Authority, Sabine River Authority, and Upper 899-2 Neches River Municipal Water Authority; 899-3 (3) in group 3, Red River Authority of Texas, Sulphur 899-4 River Municipal Water District, and Sulphur River Basin Authority; 899-5 (4) in group 4, San Jacinto River Authority, Gulf 899-6 Coast Water Authority, and North Harris County Regional Water 899-7 Authority; 899-8 (5) in group 5, North Texas Municipal Water District, 899-9 Tarrant Regional Water District, Trinity River Authority of Texas, 899-10 and Dallas County Utility and Reclamation District; 899-11 (6) in group 6, Brazos River Authority, West Central 899-12 Texas Municipal Water District, and North Central Texas Municipal 899-13 Water Authority; 899-14 (7) in group 7, Guadalupe-Blanco River Authority, 899-15 Lavaca-Navidad River Authority, Lower Colorado River Authority, and 899-16 Upper Guadalupe River Authority; 899-17 (8) in group 8, Nueces River Authority, San Antonio 899-18 River Authority, and Bexar-Medina-Atascosa Counties Water Control 899-19 and Improvement District No. 1; 899-20 (9) in group 9, Colorado River Municipal Water 899-21 District, Central Colorado River Authority, and Upper Colorado 899-22 River Authority; and 899-23 (10) in group 10, Canadian River Municipal Water 899-24 Authority, Mackenzie Municipal Water Authority, and White River 899-25 Municipal Water District. 899-26 Sec. 9.011. PERFORMANCE STANDARDS. (a) The council shall 900-1 review and assess an authority described by Section 9.010 according 900-2 to whether the authority: 900-3 (1) has complied with Section 9.012; 900-4 (2) is performing its mission, key functions, and 900-5 duties and is appropriately exercising its powers; 900-6 (3) has defined goals for its mission and has measures 900-7 for meeting those goals; 900-8 (4) works with local government effectively; 900-9 (5) has current and future funding resources to 900-10 achieve its mission, goals, objectives, and performance targets and 900-11 is appropriately using the funding resources; 900-12 (6) has an internal auditor; 900-13 (7) administers and manages the various funds in the 900-14 authority's budget properly; 900-15 (8) ensures that its functions do not duplicate those 900-16 of other entities and describes how it avoids such duplication; and 900-17 (9) has an adequate self-evaluation process. 900-18 (b) In addition to the review and assessment considerations 900-19 under Subsection (a), the council shall consider whether: 900-20 (1) the governing structure that guides board 900-21 activities is set out in a document that is efficient and workable 900-22 for achieving the mission and key functions of the authority; 900-23 (2) the authority's planning functions, including 900-24 strategic planning, business plans, the policy-making body's 900-25 planning functions, and the authority's role in regional water 900-26 planning groups, are efficient and workable for achieving the 901-1 mission and key functions of the authority; 901-2 (3) the primary role and responsibilities of the 901-3 policy-making body are clearly set out and the members of the body 901-4 are qualified to perform their duties; 901-5 (4) the policy-making body uses subcommittees or 901-6 advisory committees to carry out its duties and, if so, whether: 901-7 (A) the members are qualified to accomplish 901-8 their duties; and 901-9 (B) the committees are used appropriately; 901-10 (5) the policy-making body and any subcommittees or 901-11 advisory committees obtain input from the public regarding issues 901-12 under the authority's jurisdiction and whether this information is 901-13 incorporated into the operations of the authority; 901-14 (6) the authority's permitted water resources are 901-15 operated in a manner that achieves conservation of that resource 901-16 and protects environmental needs in accordance with environmental 901-17 requirements of permits, including instream flow and freshwater 901-18 inflow needs; 901-19 (7) if the authority charges for water or electricity, 901-20 the authority establishes an appropriate rate structure; and 901-21 (8) if the authority operates water or wastewater 901-22 treatment plants, the plants are regional in nature. 901-23 (c) Prior to its five-year review under Section 9.010, an 901-24 authority shall assess its compliance with the standards described 901-25 by this section and shall report the results to the council for use 901-26 during the review. 902-1 Sec. 9.012. ADMINISTRATIVE POLICIES FOR AUTHORITIES. 902-2 (a) Each authority subject to this chapter shall submit to the 902-3 council a copy of its administrative policies and any subsequent 902-4 amendments adopted by its board. 902-5 (b) The council shall file copies of the administrative 902-6 policies and shall make them available for public inspection. 902-7 (c) The council may request additional documents from an 902-8 authority or inspect records at the office of the authority to 902-9 determine compliance with the adopted administrative policies. 902-10 (d) The following provisions shall be incorporated into the 902-11 administrative policies adopted by the authorities subject to these 902-12 rules: 902-13 (1) Code of ethics. The administrative policies shall 902-14 mandate compliance with the following standards: 902-15 (A) Chapter 171, Local Government Code, relating 902-16 to conflicts of interest with a business entity in which a local 902-17 public official has a substantial interest; 902-18 (B) Chapter 573, Government Code, relating to 902-19 nepotism; 902-20 (C) Chapter 572, Government Code, relating to 902-21 standards of conduct, personal financial disclosure, and conflict 902-22 of interest; and 902-23 (D) Section 52, Article III, Texas Constitution, 902-24 relating to the prohibition on granting public money or a thing of 902-25 value to any individual, association, or corporation. 902-26 (2) Travel expenses. The administrative policies 903-1 shall provide for reimbursing authority officials for necessary and 903-2 reasonable travel expenses incurred while conducting business or 903-3 performing official duties or assignments. A board may adopt 903-4 additional policies which further define the criteria for necessary 903-5 and reasonable travel expenses and which provide procedures for the 903-6 reimbursement of expenses. 903-7 (3) Investments. The administrative policies shall 903-8 provide compliance with: 903-9 (A) Chapters 2256 and 2257, Government Code; and 903-10 (B) any other statute applicable to the 903-11 investment of an authority's funds. 903-12 (4) Professional services policy. The administrative 903-13 policies shall provide for compliance with Subchapter A, Chapter 903-14 2254, Government Code, which prohibits the selection of 903-15 professional services based on competitive bids, and shall further 903-16 provide that: 903-17 (A) a list be maintained of at least three 903-18 qualified persons or firms for each area of professional service 903-19 used by the authority; and 903-20 (B) the prequalified persons or firms be sent a 903-21 request for proposal for any contract award for a new project that 903-22 is expected to exceed $25,000. 903-23 (5) Industrial development bonds and pollution control 903-24 bonds. The administrative policies shall reference any industrial 903-25 development corporation associated with an authority and shall 903-26 provide for compliance with the memorandum issued by the state 904-1 auditor on October 7, 1988, relating to the disclosure of 904-2 industrial development and pollution control bonds. 904-3 (6) Management policies. The administrative policies 904-4 shall provide for: 904-5 (A) an independent management audit to be 904-6 conducted every five years and submitted to the executive director 904-7 of the commission and the council or to an internal audit office to 904-8 be established and to report to the authority's board of directors; 904-9 and 904-10 (B) compliance with the provisions of Chapter 904-11 2161, Government Code, relating to contracting with historically 904-12 underutilized businesses and providing equal employment 904-13 opportunities. 904-14 Sec. 9.013. GIFTS AND GRANTS. The council may accept gifts 904-15 and grants from any source to carry out the purposes of this 904-16 chapter. The use of gifts and grants other than legislative 904-17 appropriations is subject only to limitations contained in the gift 904-18 or grant. 904-19 Sec. 9014. FUNDING. (a) The interagency water policy 904-20 account is a special account in the general revenue fund. 904-21 (b) The interagency water policy account consists of 904-22 legislative appropriations, gifts and grants received under Section 904-23 9.013, and other money required by law to be deposited in the 904-24 account. 904-25 (c) Funds in the interagency water policy account may be 904-26 used only as provided by this chapter. 905-1 Sec. 9.015. CONTINUING RIGHT OF SUPERVISION. Nothing in 905-2 this chapter shall affect the continuing right of supervision over 905-3 authorities by the commission as provided by Section 12.081. 905-4 SECTION 3. The following laws are repealed: 905-5 (1) Chapter 97, Acts of the 44th Legislature, Regular 905-6 Session, 1935 (Angelina and Neches River Authority); 905-7 (2) Chapter 13, Special Laws, Acts of the 41st 905-8 Legislature, 2nd Called Session, 1929 (Brazos River Authority); 905-9 (3) Chapter 243, Acts of the 53rd Legislature, Regular 905-10 Session, 1953 (Canadian River Municipal Water Authority); 905-11 (4) Chapter 338, General Laws, Acts of the 44th 905-12 Legislature, Regular Session, 1935 (Central Colorado River 905-13 Authority); 905-14 (5) Chapter 340, Acts of the 51st Legislature, Regular 905-15 Session, 1949 (Colorado River Municipal Water District); 905-16 (6) Chapter 628, Acts of the 68th Legislature, Regular 905-17 Session, 1983 (Dallas County Utility and Reclamation District); 905-18 (7) Chapter 719, Acts of the 59th Legislature, Regular 905-19 Session, 1965 (Franklin County Water District); 905-20 (8) Chapter 75, Acts of the 43rd Legislature, 1st 905-21 Called Session, 1933 (Guadalupe-Blanco River Authority); 905-22 (9) Chapter 712, Acts of the 59th Legislature, Regular 905-23 Session, 1965 (Gulf Coast Water Authority); 905-24 (10) Chapter 186, Acts of the 50th Legislature, 905-25 Regular Session, 1947 (Lavaca-Navidad River Authority); 905-26 (11) Chapter 7, Acts of the 43rd Legislature, 4th 906-1 Called Session, 1934 (Lower Colorado River Authority); 906-2 (12) Chapter 63, Acts of the 43rd Legislature, 1st 906-3 Called Session, 1933 (Lower Neches Valley Authority); 906-4 (13) Chapter 277, Acts of the 59th Legislature, 906-5 Regular Session, 1965 (Mackenzie Municipal Water Authority); 906-6 (14) Chapter 86, Acts of the 55th Legislature, Regular 906-7 Session, 1957 (North Central Texas Municipal Water Authority); 906-8 (15) Chapter 1029, Acts of the 76th Legislature, 906-9 Regular Session, 1999 (North Harris County Regional Water 906-10 Authority); 906-11 (16) Chapter 62, Acts of the 52nd Legislature, Regular 906-12 Session, 1951 (North Texas Municipal Water District); 906-13 (17) Chapter 78, Acts of the 53rd Legislature, Regular 906-14 Session, 1953 (Northeast Texas Municipal Water District); 906-15 (18) Chapter 427, Acts of the 44th Legislature, 1st 906-16 Called Session, 1935 (Nueces River Authority); 906-17 (19) Chapter 279, Acts of the 56th Legislature, 906-18 Regular Session, 1959 (Red River Authority of Texas); 906-19 (20) Chapter 110, Acts of the 51st Legislature, 906-20 Regular Session, 1949 (Sabine River Authority); 906-21 (21) Chapter 9, page 1083, Special Laws, Acts of the 906-22 46th Legislature, Regular Session, 1939 (San Antonio River 906-23 Authority); 906-24 (22) Chapter 426, Acts of the 45th Legislature, 906-25 Regular Session, 1937 (San Jacinto River Authority); 906-26 (23) Chapter 3, Acts of the 69th Legislature, 1st 907-1 Called Session, 1985 (Sulphur River Basin Authority); 907-2 (24) Chapter 212, Acts of the 54th Legislature, 907-3 Regular Session, 1955 (Sulphur River Municipal Water District); 907-4 (25) Chapter 518, Acts of the 54th Legislature, 907-5 Regular Session, 1955 (Trinity River Authority of Texas); 907-6 (26) Chapter 126, Acts of the 44th Legislature, 907-7 Regular Session, 1935 (Upper Colorado River Authority); 907-8 (27) Chapter 5, page 1062, Special Laws, Acts of the 907-9 46th Legislature, Regular Session, 1939 (Upper Guadalupe River 907-10 Authority); 907-11 (28) Chapter 412, Acts of the 53rd Legislature, 907-12 Regular Session, 1953 (Upper Neches River Municipal Water 907-13 Authority); 907-14 (29) Chapter 66, Acts of the 54th Legislature, Regular 907-15 Session, 1955 (West Central Texas Municipal Water District); 907-16 (30) Chapter 221, Acts of the 55th Legislature, 907-17 Regular Session, 1957 (White River Municipal Water District). 907-18 SECTION 4. (a) Not later than January 1, 2002, the Texas 907-19 Water Policy Council, as created by this Act, shall adopt rules 907-20 necessary to implement the provisions of Chapter 9, Water Code, as 907-21 added by this Act. 907-22 (b) The Texas Water Policy Council shall review the first 907-23 group described under Section 9.010, Water Code, as added by this 907-24 Act, at the third quarterly meeting held by the council. 907-25 SECTION 5. (a) The change in law made by Section 1 of this 907-26 Act shall not affect the application of the provisions of Subtitle 908-1 A, Title 9, Government Code, to any district or authority created 908-2 under Section 59, Article XVI, or Section 52, Article III, Texas 908-3 Constitution, and subject to Title 6, Water Code, as added by this 908-4 Act, or to the bonds of any such district or authority if the 908-5 provisions applied to the district or authority or to the bonds 908-6 immediately before the effective date of this Act. 908-7 (b) The change in law made by Section 1 of this Act shall 908-8 not affect the terms, requirements, or procedures applicable to any 908-9 bonds issued before the effective date of this Act of any district 908-10 or authority created under Section 59, Article XVI, or Section 52, 908-11 Article III, Texas Constitution, and subject to Title 6, Water 908-12 Code, as added by this Act. Such bonds are governed by the law in 908-13 effect immediately before the effective date of this Act, and that 908-14 law continues in effect as to those bonds for that purpose. 908-15 SECTION 6. Nothing in this Act affects the term of office of 908-16 a member of a board of directors subject to Title 6, Water Code, as 908-17 added by this Act, who is serving on the board of directors on the 908-18 effective date of this Act. 908-19 SECTION 7. (a) A transition or saving provision of a law 908-20 codified by this Act applies to the codified law to the same extent 908-21 as it applied to the original law. 908-22 (b) The repeal of a transition or saving provision by this 908-23 Act does not affect the application of the provision to the 908-24 codified law. 908-25 (c) In this section, "transition provision" includes any 908-26 temporary provision providing for a special situation in the 909-1 transition period between the existing law and the establishment or 909-2 implementation of the new law. 909-3 SECTION 8. This Act takes effect September 1, 2001.