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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation, administration, powers, duties, and |
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operation of the Riverbend Water Resources District; providing |
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authority to issue bonds and exercise the power of eminent domain. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 6, Special District Local Laws Code, is |
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amended by adding Subtitle L to read as follows: |
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SUBTITLE L. MUNICIPAL WATER DISTRICTS |
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CHAPTER 9601. RIVERBEND WATER RESOURCES DISTRICT |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 9601.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "Bond" has the meaning assigned to the term |
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"public security" by Section 1202.001, Government Code. |
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(3) "Director" means a person appointed to the board. |
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(4) "District" means the Riverbend Water Resources |
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District. |
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(5) "Member" means a municipality, county, or other |
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political subdivision that is a member of the district as provided |
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by Section 9601.005. |
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Sec. 9601.002. NATURE OF DISTRICT. The district is a |
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conservation and reclamation district created under and essential |
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to accomplish the purposes of Section 59, Article XVI, Texas |
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Constitution. |
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Sec. 9601.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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The district is created to serve a public use and benefit. |
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(b) All land and other property included in the boundaries |
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of the district will benefit from the works and projects |
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accomplished by the district under the powers conferred by Section |
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59, Article XVI, Texas Constitution. |
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(c) The accomplishment of the purposes stated in this |
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chapter is for the benefit of the people of this state and the |
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improvement of their property and industries and will foster and |
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encourage economic development in this state. |
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(d) The district, in carrying out the purposes of this |
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chapter, will be performing an essential public function under the |
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constitution. |
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Sec. 9601.004. LIBERAL CONSTRUCTION OF CHAPTER. This |
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chapter shall be liberally construed to effect the purposes, |
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powers, rights, and functions stated in this chapter. |
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Sec. 9601.005. DISTRICT MEMBERS. (a) The district is |
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composed of the following members: |
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(1) the City of Annona; |
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(2) the City of Avery; |
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(3) the City of DeKalb; |
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(4) the City of Hooks; |
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(5) the City of Maud; |
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(6) the City of New Boston; |
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(7) the City of Texarkana, Texas; |
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(8) the City of Wake Village; and |
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(9) the Red River Redevelopment Authority. |
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(b) After receipt of a petition from the governing body of a |
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municipality, county, or other political subdivision that desires |
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to join the district, the board may add a member to the district, on |
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terms determined by the board to be in the best interests of the |
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district. |
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(c) A member's withdrawal from the district or the cessation |
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of existence of a member does not affect the validity of the |
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district or any of the district's powers or duties. |
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Sec. 9601.006. DISTRICT TERRITORY. (a) The territory of the |
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district is composed of all the territory contained in: |
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(1) the cities of Annona, Avery, DeKalb, Hooks, Maud, |
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New Boston, Texarkana, Texas, and Wake Village; and |
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(2) the Red River Redevelopment Authority, the |
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boundaries of which are described by Section 3503.004, including |
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territory that may be added under Section 3503.005. |
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(b) The territory of the district also includes all of the |
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territory: |
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(1) of any municipality, county, or other political |
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subdivision that joins the district as a member; and |
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(2) added to the territory of a member by annexation or |
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other means. |
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(c) A defect in the description of the boundaries of a |
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member or in any past or future proceedings for the annexation of |
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territory by a member does not affect the validity, powers, or |
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duties of the district. |
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Sec. 9601.007. CONFIRMATION ELECTION NOT REQUIRED. (a) |
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The board is not required to hold an election to confirm the |
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district's creation. |
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(b) Sections 49.101-49.105, Water Code, do not apply to the |
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district. |
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[Sections 9601.008-9601.050 reserved for expansion] |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 9601.051. COMPOSITION OF BOARD; TERMS. (a) The |
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district is governed by its board. |
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(b) The governing body of each member shall appoint a |
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director to represent the member on the board and shall promptly |
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fill a vacancy in that board position in accordance with the |
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member's policies, resolutions, and procedures. |
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(c) Except as provided by Subsection (d), directors serve |
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staggered terms of four years. |
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(d) A director who is also an elected official of a |
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political subdivision serves for a term coinciding with the term of |
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the elected office. |
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(e) The board shall determine the method of staggering the |
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terms of the directors. |
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(f) A director may serve consecutive terms. |
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Sec. 9601.052. QUALIFICATIONS FOR OFFICE. To be eligible to |
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be appointed or to serve as a director, a person must be a resident, |
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qualified voter of the district. |
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Sec. 9601.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) |
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The district shall act through orders or resolutions adopted by the |
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board. |
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(b) All directors are entitled to vote. |
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Sec. 9601.054. OFFICERS AND ASSISTANTS. (a) The board |
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shall elect a president, vice president, secretary, and treasurer. |
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(b) The board shall elect the president and vice president |
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from among the directors. |
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(c) The president and vice president serve for a one-year |
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term. |
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(d) The offices of secretary and treasurer: |
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(1) may be held by one person; and |
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(2) are not required to be held by a director. |
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(e) The board may appoint one or more assistant officers who |
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are not required to be directors. |
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(f) A person may not concurrently hold the offices of board |
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president and secretary. |
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Sec. 9601.055. MEETINGS. The board shall have regular |
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meetings at times specified by board resolution or bylaws and shall |
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have special meetings when called by the board president or by a |
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number of directors that is equal to or greater than the number of |
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directors that is one less than a majority of the board. |
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Sec. 9601.056. TELEPHONE CONFERENCE CALL MEETINGS. (a) The |
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board may hold an open or closed meeting by telephone conference |
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call only if: |
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(1) the meeting is a special called meeting; |
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(2) immediate action is required; and |
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(3) convening a quorum of the board at one location is |
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difficult or impossible. |
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(b) A telephone conference call meeting is subject to the |
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notice requirements applicable to other meetings of the board. |
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(c) Each part of a telephone conference call meeting that is |
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required to be open to the public shall be made audible to the |
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public at the location specified in the notice of the meeting as the |
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location of the meeting. |
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(d) The location designated in the notice as the location of |
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the meeting shall provide two-way communication during the entire |
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telephone conference call meeting, and the identification of each |
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party to the telephone conference shall be clearly stated prior to |
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speaking. |
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(e) Section 551.125, Government Code, does not apply to a |
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meeting held under this section. |
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Sec. 9601.057. RECALL. A director may be recalled at any |
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time by the governing body of the member that appointed the |
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director. |
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Sec. 9601.058. COMPENSATION; REIMBURSEMENT. A director is |
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not entitled to compensation for service on the board but is |
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entitled to be reimbursed for necessary expenses incurred in the |
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performance of official duties. |
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Sec. 9601.059. BOARD POSITION NOT A CIVIL OFFICE OF |
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EMOLUMENT. (a) A position on the board may not be construed to be a |
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civil office of emolument for any purpose, including a purpose |
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described in Section 40, Article XVI, Texas Constitution. |
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(b) An elected official of any county, municipality, or |
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other political subdivision in the territory of the district may be |
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appointed to and serve on the board as a director without penalty or |
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forfeiture of office. |
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[Sections 9601.060-9601.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 9601.101. GENERAL POWERS. Except as provided by this |
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chapter, the district may exercise the powers applicable to a |
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district under Chapter 49, Water Code. |
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Sec. 9601.102. SPECIFIC POWERS. The district may exercise |
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any power necessary or appropriate to achieve the purposes of this |
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chapter, including the power to: |
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(1) adopt and enforce: |
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(A) a trade name or trademark; |
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(B) bylaws and rules for the conduct of the |
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affairs of the district; |
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(C) any rule that a water control and improvement |
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district may adopt and enforce in accordance with Sections |
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51.127-51.130, Water Code; and |
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(D) specific rates, charges, fees, or rentals, |
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and reasonable rules and regulations, for providing any district |
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commodity, facility, or service; |
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(2) in the manner and to the extent permitted by this |
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chapter: |
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(A) borrow money for a district purpose; |
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(B) enter into an agreement in connection with |
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the borrowing; |
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(C) issue bonds for money borrowed; |
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(D) provide for and secure the payment of the |
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bonds; and |
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(E) provide for the rights of the holders of the |
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bonds; |
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(3) acquire any and all storage rights and storage |
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capacity in a reservoir or other water source inside or outside the |
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boundaries of the district, and acquire the right to take water from |
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that reservoir or source, subject to the rights or permits held by |
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municipalities or other persons, and in accordance with any |
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contract or contracts that the district may make with the United |
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States, any state of the United States, or any political |
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subdivision of any state of the United States, in reference to those |
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rights; |
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(4) construct, acquire, own, finance, operate, |
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maintain, sell, lease as lessor or lessee, dispose of, or otherwise |
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use any work, plant, or other district facility as defined by |
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Section 49.001, Water Code, inside or outside the boundaries of the |
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district, that the board determines is necessary or useful for the |
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exercise of a district power; and |
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(5) pledge all or part of district revenue to the |
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payment of district obligations under a contract or agreement to |
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the same extent and on the same conditions as the district may |
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pledge revenue to secure district bonds. |
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Sec. 9601.103. GENERAL POWERS REGARDING WATER. The |
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district has all rights, powers, and privileges necessary or useful |
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to enable it to acquire, provide, supply, deliver, and sell water, |
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whether processed or unprocessed, raw or potable, inside or |
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outside its boundaries to any person for any beneficial purpose. |
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Sec. 9601.104. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL |
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SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or a |
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county, municipality, or other political subdivision of this state |
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or another state may enter into a contract or agreement with the |
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district, on terms agreed to by the parties, for: |
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(1) the purchase or sale of water; |
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(2) waste collection, transportation, processing, or |
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disposal; or |
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(3) any purpose relating to the district's powers or |
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functions. |
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(b) A contract or agreement under this section must comply |
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with Chapter 791, Government Code. |
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(c) A provision of district services or facilities to a |
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member or an exercise of district power regarding a member's retail |
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services may only be made through a contract between the district |
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and the member under this section. |
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Sec. 9601.105. CONVEYANCE OF PROPERTY TO DISTRICT. A public |
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agency or a county, municipality, or other political subdivision of |
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this state may lease, sell, or otherwise convey to the district, for |
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any consideration that the parties agree is adequate, any of its |
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land, improvements, property, plants, lines, or other facilities |
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related to: |
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(1) the supply, delivery, or sale of water; |
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(2) waste collection, transportation, processing, or |
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disposal; or |
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(3) garbage collection or disposal. |
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Sec. 9601.106. ACQUISITION OF EXISTING FACILITIES. If the |
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district acquires existing works, improvements, facilities, |
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plants, equipment, or appliances that are completed, partially |
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created, or under construction, the district may: |
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(1) assume the contracts and obligations of the |
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previous owner; and |
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(2) perform the obligations of the previous owner in |
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the same manner and to the same extent that any other purchaser or |
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assignee would be bound. |
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[Sections 9601.107-9601.150 reserved for expansion] |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 9601.151. PROHIBITION ON ASSESSMENTS OR TAXES. (a) |
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The district may not under this chapter or any other law impose an |
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assessment on real property or an ad valorem tax or create a debt |
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payable from an assessment on real property or an ad valorem tax. |
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(b) Sections 49.106-49.108, Water Code, do not apply to the |
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district. |
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Sec. 9601.152. DEPOSITORY. District money shall be |
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deposited in the depository or depositories designated by the |
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board, except that: |
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(1) bond proceeds and money pledged to pay bonds, to |
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the extent provided in the proceedings authorizing the issuance of |
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bonds, or the trust indenture securing the bonds, may be deposited |
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with another depository or trustee named in the proceedings or |
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trust indenture; and |
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(2) money shall be remitted to each paying agent for |
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the payment of principal of and interest on the bonds. |
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Sec. 9601.153. INVESTMENT OF DISTRICT MONEY. (a) Chapter |
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2256, Government Code, applies to the district and the investment |
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of district funds and funds under district control. |
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(b) The board may invest bond proceeds in a manner |
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determined by the board or in the manner permitted or required in |
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the proceedings authorizing the issuance of bonds or in the trust |
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indenture securing the bonds. |
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Sec. 9601.154. DISTRICT FACILITIES EXEMPT FROM TAXATION AND |
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ASSESSMENT. The district is not required to pay a tax or assessment |
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on its facilities or any part of its facilities. |
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[Sections 9601.155-9601.200 reserved for expansion] |
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SUBCHAPTER E. BONDS |
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Sec. 9601.201. AUTHORITY TO ISSUE BONDS. (a) The district |
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by resolution may authorize the issuance of bonds payable from and |
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secured by revenue or any other available source of district money |
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to carry out a power conferred by this chapter. Bonds issued by the |
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district are not a direct obligation of any member. |
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(b) The bonds must be issued in the manner and under the |
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terms of the proceedings authorizing the issuance of the bonds. |
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(c) Bonds may be issued by the district without an election. |
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(d) Sections 49.181-49.186, Water Code, do not apply to the |
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district. |
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Sec. 9601.202. FORM OF BONDS. District bonds must be: |
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(1) issued in the district's name; and |
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(2) signed by the officers of the district in |
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accordance with the proceedings authorizing the issuance of the |
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bonds. |
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Sec. 9601.203. MATURITY. District bonds must mature not |
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later than 50 years after the date of their issuance. |
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Sec. 9601.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. |
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(a) Bonds may be secured by a pledge of all or part of the district's |
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revenue, or by all or part of the payments or rentals under one or |
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more contracts or leases specified by the proceedings authorizing |
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the issuance of the bonds. |
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(b) The proceedings authorizing the issuance of bonds |
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secured by a pledge of revenue of all or part of the district's |
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facilities may provide that the district shall first pay the |
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expenses of operating and maintaining all or part of the facilities |
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as the board considers appropriate before paying the principal of |
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and interest on the bonds. |
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(c) In the proceedings authorizing the issuance of bonds |
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secured by revenue, contract payments, or lease rentals, the |
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district may reserve the right, under conditions specified by the |
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proceedings, to issue additional bonds that will be on a parity |
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with, superior to, or subordinate to the bonds then being issued. |
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Sec. 9601.205. ADDITIONAL SECURITY. (a) At the discretion |
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of the board, bonds may be additionally secured by a deed of trust |
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or mortgage lien on all or part of the district's physical |
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property, facilities, easements, water rights and appropriation |
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permits, leases, contracts, and all rights appurtenant to the |
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property, vesting in the trustee power to: |
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(1) sell the property for the payment of the bonds; |
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(2) operate the property; and |
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(3) take other action to further secure the bonds. |
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(b) A purchaser under a sale under the deed of trust lien, if |
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one is given, is: |
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(1) the absolute owner of the property, facilities, |
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and rights purchased; and |
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(2) entitled to maintain and operate the property, |
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facilities, and rights. |
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Sec. 9601.206. DELEGATION OF AUTHORITY. (a) In connection |
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with the issuance of bonds, the board may: |
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(1) prescribe the maximum principal amount of bonds to |
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be issued and the maximum rate of interest the bonds may bear; |
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(2) recite the public purpose for which the bonds are |
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to be issued; |
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(3) delegate to any officer or employee of the |
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district the authority to effect the sale of the bonds; and |
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(4) determine the period during which the delegation |
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authority under Subdivision (3) may be exercised. |
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(b) In exercising the authority delegated by the board to an |
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officer or employee, the officer or employee may establish the |
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terms and details related to the issuance and sale of the bonds, |
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including: |
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(1) the form and designation of the bonds; |
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(2) the principal amount of the bonds and the amount of |
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the bonds to mature in each year; |
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(3) the dates, price, interest rates, interest payment |
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dates, principal payment dates, and redemption features of the |
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bonds; |
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(4) the execution of agreements determined by the |
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officer or employee to be necessary in connection with the issuance |
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of the bonds; and |
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(5) any other details relating to the issuance and |
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sale of the bonds as specified by the board in the proceedings |
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authorizing the issuance of the bonds. |
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(c) A finding or determination made by an officer or |
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employee acting under the authority delegated to the officer or |
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employee has the same force and effect as a finding or determination |
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made by the board. |
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Sec. 9601.207. TRUST INDENTURE. District bonds authorized |
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by this chapter, including refunding bonds, may be additionally |
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secured by a trust indenture. The trustee may be a bank with trust |
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powers that is located inside or outside the state. |
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Sec. 9601.208. CREDIT AGREEMENT. In connection with the |
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issuance of bonds under this chapter, the board may exercise the |
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authority granted to the governing body of an issuer with regard to |
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the execution and delivery of a credit agreement under Chapter |
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1371, Government Code. |
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Sec. 9601.209. CHARGES FOR DISTRICT SERVICES. If bonds |
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payable wholly from revenue are issued, the board shall set and |
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revise the rates, fees, and charges assessed for water sold, waste |
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collection and treatment services provided, and garbage collection |
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services provided by the district. The rates, fees, and charges |
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must be sufficient to: |
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(1) pay the expense of operating and maintaining the |
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district facilities that generate the revenue from which the bonds |
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may or will be paid; |
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(2) pay the principal of and interest on the bonds when |
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due; and |
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(3) maintain the reserve fund and other funds as |
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provided in the proceedings authorizing the issuance of bonds or |
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the trust indenture securing the bonds. |
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Sec. 9601.210. STATE PLEDGE REGARDING RIGHTS AND REMEDIES |
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OF BONDHOLDERS. Without depriving this state of its power to |
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regulate and control the rates, fees, and charges assessed for |
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water sold and waste collection and treatment services provided by |
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the district, the state pledges to and agrees with the holders of |
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district bonds that the state will not exercise its power to |
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regulate and control the rates, fees, and charges in any way that |
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would impair the rights or remedies of the holders of the bonds. |
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Sec. 9601.211. USE OF BOND PROCEEDS. In addition to the |
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permitted use of bond proceeds provided by general law, the |
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district may use proceeds from the sale of bonds: |
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(1) for the payment of interest on the bonds while the |
|
project or facility is being acquired or constructed and for the |
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year after it is acquired or constructed; |
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(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; |
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(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 |
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(6) to pay any costs incurred under the terms of a |
|
credit agreement. |
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Sec. 9601.212. ADDITIONAL AUTHORITY TO PROVIDE DEBT SERVICE |
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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. |
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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. |
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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. |
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Sec. 9601.215. LIMITATION ON RIGHTS OF BONDHOLDERS. The |
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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 |
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district's property or income. |
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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. |
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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 2. (a) The legal notice of the intention to |
|
introduce this Act, setting forth the general substance of this |
|
Act, has been published as provided by law, and the notice and a |
|
copy of this Act 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 Act to the |
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Texas Commission on Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |