Amend CSHB 3335 (Senate committee report) as follows: (1) Add the following appropriately numbered ARTICLES to the bill and renumber subsequent ARTICLES accordingly:ARTICLE ___. HARRISON COUNTY GROUNDWATER CONSERVATION DISTRICT SECTION ___.01. Subtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter 8850 to read as follows:CHAPTER 8850. HARRISON COUNTY GROUNDWATER CONSERVATION DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 8850.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "Director" means a member of the board. (3) "District" means the Harrison County Groundwater Conservation District. Sec. 8850.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Harrison County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Sec. 8850.003. CONFIRMATION ELECTION REQUIRED. If the creation of the district is not confirmed at a confirmation election held under Section 8850.023 before December 31, 2010: (1) the district is dissolved December 31, 2010, except that: (A) any debts incurred shall be paid; (B) any assets that remain after the payment of debts shall be transferred to Harrison County; and (C) the organization of the district shall be maintained until all debts are paid and remaining assets are transferred; and (2) this chapter expires September 1, 2014. Sec. 8850.004. INITIAL DISTRICT TERRITORY. The initial boundaries of the district are coextensive with the boundaries of Harrison County, Texas. Sec. 8850.005. DISTRICT TERRITORY REQUIREMENTS; DISSOLUTION OF DISTRICT. (a) On September 1, 2013, the district boundaries must include at least one county adjacent to Harrison County. (b) As soon as practicable after September 1, 2013, the Texas Commission on Environmental Quality shall determine whether the district complies with Subsection (a). (c) If the commission determines that the district does not comply with Subsection (a), the commission shall dissolve the district in accordance with Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water Code, regardless of whether the district meets the criteria for dissolution under Section 36.304(a), Water Code. (d) This section expires September 1, 2015. Sec. 8850.006. APPLICABILITY OF OTHER GROUNDWATER CONSERVATION DISTRICT LAW. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.[Sections 8850.007-8850.020 reserved for expansion] SUBCHAPTER A-1. TEMPORARY PROVISIONS Sec. 8850.021. APPOINTMENT OF TEMPORARY DIRECTORS. (a) Not later than the 45th day after the effective date of the Act enacting this chapter, five temporary directors shall be appointed as follows: (1) the Harrison County Commissioners Court shall appoint four temporary directors, with one of the temporary directors appointed from each of the four commissioners precincts in the county to represent the precincts in which the temporary directors reside; and (2) the county judge of Harrison County shall appoint one temporary director who resides in the district to represent the district at large. (b) Of the temporary directors, at least one director must represent rural water suppliers in the district, one must represent agricultural interests in the district, and one must represent industrial interests in the district. (c) If there is a vacancy on the temporary board of directors of the district, the Harrison County Commissioners Court shall appoint a person to fill the vacancy in a manner that meets the representational requirements of this section. (d) Temporary directors serve until the earlier of: (1) the date initial directors are elected under Section 8850.023; or (2) the fourth anniversary of the effective date of the Act creating this chapter. (e) If initial directors have not been elected under Section 8850.023 and the terms of the temporary directors have expired, successor temporary directors shall be appointed in the manner provided by Subsections (a) and (b) to serve terms that expire on the date this subchapter expires under Section 8850.026. Sec. 8850.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 36.055, Water Code, a majority of the temporary directors shall convene the organizational meeting of the district at a location within the district agreeable to a majority of the directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Harrison County Courthouse. Sec. 8850.023. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) The temporary directors shall hold an election to confirm the creation of the district and to elect the initial directors of the district. (b) The temporary directors shall have placed on the ballot the names of all candidates for an initial director's position who have filed an application for a place on the ballot as provided by Section 52.003, Election Code. (c) The ballot must be printed to provide for voting for or against the proposition: "The creation of the Harrison County Groundwater Conservation District." (d) If the district levies a maintenance tax for payment of expenses, the ballot must be printed to provide for voting for or against the proposition: "The levy of a maintenance tax at a rate not to exceed 1.5 cents for each $100 of assessed valuation." (e) Section 41.001(a), Election Code, does not apply to an election held under this section. (f) Except as provided by this section, an election under this section must be conducted as provided by Sections 36.017(b)-(i), Water Code, and the Election Code. The provision of Section 36.017(d), Water Code, relating to the election of permanent directors does not apply to an election under this section. Sec. 8850.024. INITIAL DIRECTORS. (a) If creation of the district is confirmed at an election held under Section 8850.023, the directors elected shall take office as initial directors of the district and serve on the board of directors until permanent directors are elected under Section 8850.025 or 8850.053. (b) The four initial directors representing the commissioners precincts shall draw lots to determine which two shall serve a term expiring June 1 following the first regularly scheduled election of directors under Section 8850.025, and which two shall serve a term expiring June 1 following the second regularly scheduled election of directors. The at-large director shall serve a term expiring June 1 following the second regularly scheduled election of directors. Sec. 8850.025. INITIAL ELECTION OF PERMANENT DIRECTORS. On the uniform election date prescribed by Section 41.001, Election Code, in May of the first even-numbered year after the year in which the district is authorized to be created at a confirmation election, an election shall be held in the district for the election of two directors to replace the initial directors who, under Section 8850.024(b), serve a term expiring June 1 following that election. Sec. 8850.026. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2014.[Sections 8850.027-8850.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8850.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors. (b) Directors serve staggered four-year terms, with two or three directors' terms expiring June 1 of each even-numbered year. (c) A director may serve consecutive terms. Sec. 8850.052. METHOD OF ELECTING DIRECTORS: COMMISSIONERS PRECINCTS. (a) The directors of the district shall be elected according to the commissioners precinct method as provided by this section. (b) One director shall be elected by the voters of the entire district, and one director shall be elected from each county commissioners precinct by the voters of that precinct. (c) Except as provided by Subsection (e), to be eligible to be a candidate for or to serve as director at large, a person must be a registered voter in the district. To be a candidate for or to serve as director from a county commissioners precinct, a person must be a registered voter of that precinct. (d) A person shall indicate on the application for a place on the ballot: (1) the precinct that the person seeks to represent; or (2) that the person seeks to represent the district at large. (e) When the boundaries of the county commissioners precincts are redrawn after each federal decennial census to reflect population changes, a director in office on the effective date of the change, or a director elected or appointed before the effective date of the change whose term of office begins on or after the effective date of the change, shall serve in the precinct to which elected or appointed even though the change in boundaries places the person's residence outside the precinct for which the person was elected or appointed. Sec. 8850.053. ELECTION DATE. The district shall hold an election to elect the appropriate number of directors on the uniform election date prescribed by Section 41.001, Election Code, in May of each even-numbered year. Sec. 8850.054. COMPENSATION. (a) Sections 36.060(a), (b), and (d), Water Code, do not apply to the district. (b) A director is entitled to receive compensation of not more than $50 a day for each day the director actually spends performing the duties of a director. The compensation may not exceed $3,000 a year. (c) The board may authorize a director to receive reimbursement for the director's reasonable expenses incurred while engaging in activities on behalf of the board. Sec. 8850.055. BOARD ACTION. A majority vote of a quorum is required for board action. If there is a tie vote, the proposed action fails.[Sections 8850.056-8850.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8850.101. GENERAL POWERS. Except as otherwise provided by this chapter, the district has all of the rights, powers, privileges, functions, and duties provided by the general law of this state applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Sec. 8850.102. PROHIBITION ON DISTRICT PURCHASE, SALE, TRANSPORT, OR DISTRIBUTION OF WATER. The district may not purchase, sell, transport, or distribute surface water or groundwater for any purpose. Sec. 8850.103. PROHIBITION ON DISTRICT USE OF EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.[Sections 8850.104-8850.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8850.151. LIMITATION ON TAXES. The district may not impose ad valorem taxes at a rate that exceeds 1.5 cents on each $100 valuation of taxable property in the district. Sec. 8850.152. FEES. (a) The board by rule may impose reasonable fees on each well: (1) for which a permit is issued by the district; and (2) that is not exempt from district regulation. (b) A production fee may be based on: (1) the size of column pipe used by the well; or (2) the amount of water actually withdrawn from the well, or the amount authorized or anticipated to be withdrawn. (c) The board shall base the initial production fee on the criteria listed in Subsection (b)(2). The initial production fee: (1) may not exceed: (A) 25 cents per acre-foot for water used for agricultural irrigation; or (B) 4.25 cents per thousand gallons for water used for any other purpose; and (2) may be increased at a cumulative rate not to exceed three percent per year. (d) In addition to the production fee authorized under this section, the district may assess an export fee on groundwater from a well that is produced for transport outside the district. (e) Fees authorized by this section may be: (1) assessed annually; (2) used to pay the cost of district operations; and (3) used for any other purpose allowed under Chapter 36, Water Code. Sec. 8850.153. LIMITATION ON INDEBTEDNESS. The district may issue bonds and notes under Subchapter F, Chapter 36, Water Code, except that the total indebtedness created by that issuance may not exceed $500,000 at any time. SECTION ___.02. (a) The legal notice of the intention to introduce this article, setting forth the general substance of this article, has been published as provided by law, and the notice and a copy of this article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor has submitted the notice and this article to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this article with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished.ARTICLE ___. RIVERBEND WATER RESOURCES DISTRICT SECTION ___.01. Title 6, Special District Local Laws Code, is amended by adding Subtitle L to read as follows:SUBTITLE L. MUNICIPAL WATER DISTRICTS CHAPTER 9601. RIVERBEND WATER RESOURCES DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 9601.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "Bond" has the meaning assigned to the term "public security" by Section 1202.001, Government Code. (3) "Director" means a person appointed to the board. (4) "District" means the Riverbend Water Resources District. (5) "Member" means a municipality, county, or other political subdivision that is a member of the district as provided by Section 9601.005. Sec. 9601.002. NATURE OF DISTRICT. The district is a conservation and reclamation district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Sec. 9601.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution. (c) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and the improvement of their property and industries and will foster and encourage economic development in this state. (d) The district, in carrying out the purposes of this chapter, will be performing an essential public function under the constitution. Sec. 9601.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effect the purposes, powers, rights, and functions stated in this chapter. Sec. 9601.005. DISTRICT MEMBERS. (a) The district is composed of the following members: (1) the City of Annona; (2) the City of Avery; (3) the City of DeKalb; (4) the City of Hooks; (5) the City of Maud; (6) the City of New Boston; (7) the City of Texarkana, Texas; (8) the City of Wake Village; and (9) the Red River Redevelopment Authority. (b) After receipt of a petition from the governing body of a municipality, county, or other political subdivision that desires to join the district, the board may add a member to the district on terms determined by the board to be in the best interests of the district. (c) A member's withdrawal from the district or the cessation of existence of a member does not affect the validity of the district or any of the district's powers or duties. Sec. 9601.006. DISTRICT TERRITORY. (a) The territory of the district is composed of all the territory contained in: (1) the cities of Annona, Avery, DeKalb, Hooks, Maud, New Boston, Texarkana, Texas, and Wake Village; and (2) the Red River Redevelopment Authority, the boundaries of which are described by Section 3503.004, including territory that may be added under Section 3503.005. (b) The territory of the district also includes all of the territory: (1) of any municipality, county, or other political subdivision that joins the district as a member; and (2) added to the territory of a member by annexation or other means. (c) A defect in the description of the boundaries of a member or in any past or future proceedings for the annexation of territory by a member does not affect the validity, powers, or duties of the district. Sec. 9601.007. CONFIRMATION ELECTION NOT REQUIRED. (a) The board is not required to hold an election to confirm the district's creation. (b) Sections 49.101-49.105, Water Code, do not apply to the district.[Sections 9601.008-9601.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 9601.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by its board. (b) The governing body of each member shall appoint a director to represent the member on the board and shall promptly fill a vacancy in that board position in accordance with the member's policies, resolutions, and procedures. (c) Except as provided by Subsection (d), directors serve staggered terms of four years. (d) A director who is also an elected official of a political subdivision serves for a term coinciding with the term of the elected office. (e) The board shall determine the method of staggering the terms of the directors. (f) A director may serve consecutive terms. Sec. 9601.052. QUALIFICATIONS FOR OFFICE. To be eligible to be appointed or to serve as a director, a person must be a resident, qualified voter of the district. Sec. 9601.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The district shall act through orders or resolutions adopted by the board. (b) All directors are entitled to vote. Sec. 9601.054. OFFICERS AND ASSISTANTS. (a) The board shall elect a president, vice president, secretary, and treasurer. (b) The board shall elect the president and vice president from among the directors. (c) The president and vice president serve for a one-year term. (d) The offices of secretary and treasurer: (1) may be held by one person; and (2) are not required to be held by a director. (e) The board may appoint one or more assistant officers who are not required to be directors. (f) A person may not concurrently hold the offices of board president and secretary. Sec. 9601.055. MEETINGS. The board shall have regular meetings at times specified by board resolution or bylaws and shall have special meetings when called by the board president or by a number of directors that is equal to or greater than the number of directors that is one less than a majority of the board. Sec. 9601.056. TELEPHONE CONFERENCE CALL MEETINGS. (a) The board may hold an open or closed meeting by telephone conference call only if: (1) the meeting is a special called meeting; (2) immediate action is required; and (3) convening a quorum of the board at one location is difficult or impossible. (b) A telephone conference call meeting is subject to the notice requirements applicable to other meetings of the board. (c) Each part of a telephone conference call meeting that is required to be open to the public shall be made audible to the public at the location specified in the notice of the meeting as the location of the meeting. (d) The location designated in the notice as the location of the meeting shall provide two-way communication during the entire telephone conference call meeting, and the identification of each party to the telephone conference shall be clearly stated prior to speaking. (e) Section 551.125, Government Code, does not apply to a meeting held under this section. Sec. 9601.057. RECALL. A director may be recalled at any time by the governing body of the member that appointed the director. Sec. 9601.058. COMPENSATION; REIMBURSEMENT. A director is not entitled to compensation for service on the board but is entitled to be reimbursed for necessary expenses incurred in the performance of official duties. Sec. 9601.059. BOARD POSITION NOT A CIVIL OFFICE OF EMOLUMENT. (a) A position on the board may not be construed to be a civil office of emolument for any purpose, including a purpose described in Section 40, Article XVI, Texas Constitution. (b) An elected official of any county, municipality, or other political subdivision in the territory of the district may be appointed to and serve on the board as a director without penalty or forfeiture of office.[Sections 9601.060-9601.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 9601.101. GENERAL POWERS. Except as provided by this chapter, the district may exercise the powers applicable to a district under Chapter 49, Water Code. Sec. 9601.102. SPECIFIC POWERS. The district may exercise any power necessary or appropriate to achieve the purposes of this chapter, including the power to: (1) adopt and enforce: (A) a trade name or trademark; (B) bylaws and rules for the conduct of the affairs of the district; (C) any rule that a water control and improvement district may adopt and enforce in accordance with Sections 51.127-51.130, Water Code; and (D) specific rates, charges, fees, or rentals, and reasonable rules and regulations, for providing any district commodity, facility, or service; (2) in the manner and to the extent permitted by this chapter: (A) borrow money for a district purpose; (B) enter into an agreement in connection with the borrowing; (C) issue bonds for money borrowed; (D) provide for and secure the payment of the bonds; and (E) provide for the rights of the holders of the bonds; (3) acquire any and all storage rights and storage capacity in a reservoir or other water source inside or outside the boundaries of the district, and acquire the right to take water from that reservoir or source, subject to the rights or permits held by municipalities or other persons, and in accordance with any contract or contracts that the district may make with the United States, any state of the United States, or any political subdivision of any state of the United States, in reference to those rights; (4) construct, acquire, own, finance, operate, maintain, sell, lease as lessor or lessee, dispose of, or otherwise use any work, plant, or other district facility as defined by Section 49.001, Water Code, inside or outside the boundaries of the district, that the board determines is necessary or useful for the exercise of a district power; and (5) pledge all or part of district revenue to the payment of district obligations under a contract or agreement to the same extent and on the same conditions as the district may pledge revenue to secure district bonds. Sec. 9601.103. GENERAL POWERS REGARDING WATER. The district has all rights, powers, and privileges necessary or useful to enable it to acquire, provide, supply, deliver, and sell water, whether processed or unprocessed, raw or potable, inside or outside its boundaries to any person for any beneficial purpose. Sec. 9601.104. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or a county, municipality, or other political subdivision of this state or another state may enter into a contract or agreement with the district, on terms agreed to by the parties, for: (1) the purchase or sale of water; (2) waste collection, transportation, processing, or disposal; or (3) any purpose relating to the district's powers or functions. (b) A contract or agreement under this section must comply with Chapter 791, Government Code. (c) A provision of district services or facilities to a member or an exercise of district power regarding a member's retail services may only be made through a contract between the district and the member under this section. Sec. 9601.105. CONVEYANCE OF PROPERTY TO DISTRICT. A public agency or a county, municipality, or other political subdivision of this state may lease, sell, or otherwise convey to the district, for any consideration that the parties agree is adequate, any of its land, improvements, property, plants, lines, or other facilities related to: (1) the supply, delivery, or sale of water; (2) waste collection, transportation, processing, or disposal; or (3) garbage collection or disposal. Sec. 9601.106. ACQUISITION OF EXISTING FACILITIES. If the district acquires existing works, improvements, facilities, plants, equipment, or appliances that are completed, partially created, or under construction, the district may: (1) assume the contracts and obligations of the previous owner; and (2) perform the obligations of the previous owner in the same manner and to the same extent that any other purchaser or assignee would be bound.[Sections 9601.107-9601.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 9601.151. PROHIBITION ON ASSESSMENTS OR TAXES. (a) The district may not under this chapter or any other law impose an assessment on real property or an ad valorem tax or create a debt payable from an assessment on real property or an ad valorem tax. (b) Sections 49.106-49.108, Water Code, do not apply to the district. Sec. 9601.152. DEPOSITORY. District money shall be deposited in the depository or depositories designated by the board, except that: (1) bond proceeds and money pledged to pay bonds, to the extent provided in the proceedings authorizing the issuance of bonds, or the trust indenture securing the bonds, may be deposited with another depository or trustee named in the proceedings or trust indenture; and (2) money shall be remitted to each paying agent for the payment of principal of and interest on the bonds. Sec. 9601.153. INVESTMENT OF DISTRICT MONEY. (a) Chapter 2256, Government Code, applies to the district and the investment of district funds and funds under district control. (b) The board may invest bond proceeds in a manner determined by the board or in the manner permitted or required in the proceedings authorizing the issuance of bonds or in the trust indenture securing the bonds. Sec. 9601.154. DISTRICT FACILITIES EXEMPT FROM TAXATION AND ASSESSMENT. The district is not required to pay a tax or assessment on its facilities or any part of its facilities.[Sections 9601.155-9601.200 reserved for expansion] SUBCHAPTER E. BONDS Sec. 9601.201. AUTHORITY TO ISSUE BONDS. (a) The district by resolution may authorize the issuance of bonds payable from and secured by revenue or any other available source of district money to carry out a power conferred by this chapter. Bonds issued by the district are not a direct obligation of any member. (b) The bonds must be issued in the manner and under the terms of the proceedings authorizing the issuance of the bonds. (c) Bonds may be issued by the district without an election. (d) Sections 49.181-49.186, Water Code, do not apply to the district. Sec. 9601.202. FORM OF BONDS. District bonds must be: (1) issued in the district's name; and (2) signed by the officers of the district in accordance with the proceedings authorizing the issuance of the bonds. Sec. 9601.203. MATURITY. District bonds must mature not later than 50 years after the date of their issuance. Sec. 9601.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a) Bonds may be secured by a pledge of all or part of the district's revenue, or by all or part of the payments or rentals under one or more contracts or leases specified by the proceedings authorizing the issuance of the bonds. (b) The proceedings authorizing the issuance of bonds secured by a pledge of revenue of all or part of the district's facilities may provide that the district shall first pay the expenses of operating and maintaining all or part of the facilities as the board considers appropriate before paying the principal of and interest on the bonds. (c) In the proceedings authorizing the issuance of bonds secured by revenue, contract payments, or lease rentals, the district may reserve the right, under conditions specified by the proceedings, to issue additional bonds that will be on a parity with, superior to, or subordinate to the bonds then being issued. Sec. 9601.205. ADDITIONAL SECURITY. (a) At the discretion of the board, bonds may be additionally secured by a deed of trust or mortgage lien on all or part of the district's physical property, facilities, easements, water rights and appropriation permits, leases, contracts, and all rights appurtenant to the property, vesting in the trustee power to: (1) sell the property for the payment of the bonds; (2) operate the property; and (3) take other action to further secure the bonds. (b) A purchaser under a sale under the deed of trust lien, if one is given, is: (1) the absolute owner of the property, facilities, and rights purchased; and (2) entitled to maintain and operate the property, facilities, and rights. Sec. 9601.206. DELEGATION OF AUTHORITY. (a) In connection with the issuance of bonds, the board may: (1) prescribe the maximum principal amount of bonds to be issued and the maximum rate of interest the bonds may bear; (2) recite the public purpose for which the bonds are to be issued; (3) delegate to any officer or employee of the district the authority to effect the sale of the bonds; and (4) determine the period during which the delegation authority under Subdivision (3) may be exercised. (b) In exercising the authority delegated by the board to an officer or employee, the officer or employee may establish the terms and details related to the issuance and sale of the bonds, including: (1) the form and designation of the bonds; (2) the principal amount of the bonds and the amount of the bonds to mature in each year; (3) the dates, price, interest rates, interest payment dates, principal payment dates, and redemption features of the bonds; (4) the execution of agreements determined by the officer or employee to be necessary in connection with the issuance of the bonds; and (5) any other details relating to the issuance and sale of the bonds as specified by the board in the proceedings authorizing the issuance of the bonds. (c) A finding or determination made by an officer or employee acting under the authority delegated to the officer or employee has the same force and effect as a finding or determination made by the board. Sec. 9601.207. TRUST INDENTURE. District bonds authorized by this chapter, including refunding bonds, may be additionally secured by a trust indenture. The trustee may be a bank with trust powers that is located inside or outside the state. Sec. 9601.208. CREDIT AGREEMENT. In connection with the issuance of bonds under this chapter, the board may exercise the authority granted to the governing body of an issuer with regard to the execution and delivery of a credit agreement under Chapter 1371, Government Code. Sec. 9601.209. CHARGES FOR DISTRICT SERVICES. If bonds payable wholly from revenue are issued, the board shall set and revise the rates, fees, and charges assessed for water sold, waste collection and treatment services provided, and garbage collection services provided by the district. The rates, fees, and charges must be sufficient to: (1) pay the expense of operating and maintaining the district facilities that generate the revenue from which the bonds may or will be paid; (2) pay the principal of and interest on the bonds when due; and (3) maintain the reserve fund and other funds as provided in the proceedings authorizing the issuance of bonds or the trust indenture securing the bonds. Sec. 9601.210. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. Without depriving this state of its power to regulate and control the rates, fees, and charges assessed for water sold and waste collection and treatment services provided by the district, the state pledges to and agrees with the holders of district bonds that the state will not exercise its power to regulate and control the rates, fees, and charges in any way that would impair the rights or remedies of the holders of the bonds. Sec. 9601.211. USE OF BOND PROCEEDS. In addition to the permitted use of bond proceeds provided by general law, the district may use proceeds from the sale of bonds: (1) for the payment of interest on the bonds while the project or facility is being acquired or constructed and for the year after it is acquired or constructed; (2) for the operation and maintenance of the project or facility during the estimated period of acquisition or construction of the project or facility and for one year after it is acquired or constructed; (3) for a debt service reserve fund; (4) for other funds as may be provided in the proceedings authorizing the issuance of bonds or in the trust indenture securing the bonds; (5) to pay any expense necessarily incurred in accomplishing the purpose of the district, including any expense of issuing and selling the bonds; and (6) to pay any costs incurred under the terms of a credit agreement. Sec. 9601.212. ADDITIONAL AUTHORITY TO PROVIDE DEBT SERVICE RESERVE. (a) The board may provide that in lieu of or in addition to providing for the funding of a debt service reserve fund with cash, a line or letter of credit or an insurance policy may be used for the debt service reserve fund. (b) Any agreement under which a line or letter of credit or insurance policy is provided must be submitted to the attorney general for examination and approval. After approval, the agreement is incontestable in any court or other forum for any reason and is a valid and binding obligation of the district in accordance with its terms for all purposes. Sec. 9601.213. REFUNDING BONDS. (a) The district may issue refunding bonds to refund all or part of its outstanding bonds issued under this chapter, including matured but unpaid interest and obligations incurred under a credit agreement. (b) Refunding bonds may be issued in the manner provided by Chapter 1207, Government Code. Sec. 9601.214. REMEDIES AND COVENANTS. The proceedings authorizing the issuance of any bonds authorized under this chapter, including refunding bonds, the execution of a trust indenture securing the bonds, and the execution of a credit agreement, may provide other remedies and covenants the board considers necessary to issue the bonds on terms the board determines to be most favorable to the district. Sec. 9601.215. LIMITATION ON RIGHTS OF BONDHOLDERS. The proceedings authorizing the issuance of bonds or the trust indenture securing the bonds may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income. Sec. 9601.216. BONDS EXEMPT FROM TAXATION. Payments made by the district in connection with the issuance of bonds, the transfer of any bond, and the income from any bond, including profits made on the sale of any bond, are exempt from taxation in this state. Sec. 9601.217. APPOINTMENT OF RECEIVER. (a) On default or threatened default in the payment of the principal of or interest on obligations incurred by the district in connection with the issuance of bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of at least 25 percent of the district's outstanding revenue bonds, or the party to a credit agreement, appoint a receiver for the district. (b) The receiver may collect and receive all district revenue, employ and discharge district agents and employees, take charge of money on hand, and manage the district's proprietary affairs without the consent of or hindrance by the board. (c) The receiver may be authorized to sell or contract for the sale of water, the collection or treatment of waste, or the provision of garbage collection or disposal services, or to renew contracts with the approval of the court that appointed the receiver. (d) The court may vest the receiver with any other power or duty the court finds necessary to protect the holders of the bonds or the party to a credit agreement. SECTION ___.02. (a) The legal notice of the intention to introduce this article, setting forth the general substance of this article, has been published as provided by law, and the notice and a copy of this article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor has submitted the notice and this article to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this article with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished. (2) In SECTION 3.01(a) of the bill (page 13, line 15), strike "Subsection (b)" and substitute "Subsections (b) and (c)". (3) In SECTION 3.01 of the bill, following Subsection (b) of the section (page 13, following line 22) add the following: (c) The articles creating the Harrison County Groundwater Conservation District and the Riverbend Water Resources District take effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, the articles creating the Harrison County Groundwater Conservation District and the Riverbend Water Resources District take effect September 1, 2009. ELTIFE