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  H.B. No. 4172
 
 
 
 
AN ACT
  relating to the nonsubstantive revision of certain local laws
  concerning water and wastewater special districts, including
  conforming amendments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS
         SECTION 1.01.  NAVIGATION DISTRICTS AND PORT AUTHORITIES.  
  Subtitle A, Title 5, Special District Local Laws Code, is amended by adding Chapters 5012, 5016, 5018, and 5019 to read as follows:
 
  CHAPTER 5012. SABINE PASS PORT AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 5012.0001.  DEFINITIONS 
  Sec. 5012.0002.  LEGISLATIVE FINDINGS OF PURPOSE AND
                    BENEFIT 
  Sec. 5012.0003.  AUTHORITY TERRITORY 
  SUBCHAPTER B. AUTHORITY ADMINISTRATION
  Sec. 5012.0051.  COMMISSION; TERMS; ELECTION 
  Sec. 5012.0052.  QUALIFICATIONS FOR OFFICE 
  Sec. 5012.0053.  NOTICE OF COMMISSIONERS' ELECTION 
  Sec. 5012.0054.  ELECTION RESULTS 
  Sec. 5012.0055.  COMMISSIONERS' OATH AND BOND 
  Sec. 5012.0056.  VOTING REQUIREMENT 
  Sec. 5012.0057.  OFFICERS 
  Sec. 5012.0058.  COMPENSATION OF COMMISSIONERS;
                    EXPENSES 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 5012.0101.  GENERAL POWERS 
  Sec. 5012.0102.  POWERS REGARDING PORTS, WATERWAYS, AND
                    FACILITIES 
  Sec. 5012.0103.  BYLAWS AND RULES 
  Sec. 5012.0104.  GIFT OR PURCHASE OF PROPERTY 
  Sec. 5012.0105.  EMINENT DOMAIN 
  Sec. 5012.0106.  LEASE OF AUTHORITY FACILITIES 
  Sec. 5012.0107.  SALE OF SURPLUS PROPERTY 
  Sec. 5012.0108.  GENERAL AUTHORITY TO MAKE CONTRACTS
                    AND EXECUTE INSTRUMENTS 
  Sec. 5012.0109.  COMPETITIVE BIDDING FOR CERTAIN
                    CONTRACTS 
  Sec. 5012.0110.  OFFICERS, AGENTS, AND EMPLOYEES 
  Sec. 5012.0111.  SEAL 
  Sec. 5012.0112.  AUTHORITY TO SUE AND BE SUED 
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 5012.0151.  MAINTENANCE AND OPERATIONS TAX 
  Sec. 5012.0152.  TAX ASSESSOR AND COLLECTOR 
  Sec. 5012.0153.  AUTHORITY TO BORROW MONEY, ACCEPT
                    GRANTS, AND ISSUE ASSOCIATED REVENUE
                    BONDS 
  Sec. 5012.0154.  AUTHORITY TO BORROW MONEY FOR CURRENT
                    EXPENSES; EVIDENCE OF OBLIGATION 
  SUBCHAPTER E. BONDS
  Sec. 5012.0201.  AUTHORITY TO ISSUE BONDS; ELECTION 
  Sec. 5012.0202.  FORM OF BONDS 
  Sec. 5012.0203.  TERMS OF ISSUANCE 
  Sec. 5012.0204.  DEPOSIT OF PROCEEDS 
  Sec. 5012.0205.  RESOLUTION PROVISIONS 
  Sec. 5012.0206.  BOND ANTICIPATION NOTES 
  Sec. 5012.0207.  REFUNDING BONDS 
  CHAPTER 5012. SABINE PASS PORT AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 5012.0001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means the Sabine Pass Port Authority.
               (2)  "Commission" means the authority's port
  commission.
               (3)  "Commissioner" means a commission member. (Acts
  63rd Leg., R.S., Ch. 379, Secs. 1 (part), 2 (part).)
         Sec. 5012.0002.  LEGISLATIVE FINDINGS OF PURPOSE AND
  BENEFIT. (a) The authority is a port district essential to
  accomplish the purposes of Section 59, Article XVI, Texas
  Constitution.
         (b)  All territory in the authority benefits from the
  authority's improvements, works, and facilities. (Acts 63rd Leg.,
  R.S., Ch. 379, Sec. 1 (part).)
         Sec. 5012.0003.  AUTHORITY TERRITORY. The authority is
  composed of the territory in Jefferson County described by Section
  1, Chapter 379, Acts of the 63rd Legislature, 1973, as that
  territory may have been modified under:
               (1)  Subchapter H, Chapter 62, Water Code; or
               (2)  other law. (Acts 63rd Leg., R.S., Ch. 379, Sec. 1
  (part); New.)
  SUBCHAPTER B. AUTHORITY ADMINISTRATION
         Sec. 5012.0051.  COMMISSION; TERMS; ELECTION. (a) The
  authority is governed by a commission composed of five elected
  commissioners.
         (b)  Commissioners serve staggered two-year terms, with two
  commissioners elected in each even-numbered year and three
  commissioners elected in each odd-numbered year.
         (c)  The commission:
               (1)  is the authority's governing body; and
               (2)  has the powers conferred on navigation and canal
  commissioners of navigation districts and the commissioners court
  by the Water Code. (Acts 63rd Leg., R.S., Ch. 379, Secs. 2(2)
  (part), 4 (part), 5 (part).)
         Sec. 5012.0052.  QUALIFICATIONS FOR OFFICE. Each
  commissioner must:
               (1)  be a resident of the authority;
               (2)  own taxable property in the authority; and
               (3)  be a qualified voter. (Acts 63rd Leg., R.S., Ch.
  379, Sec. 4 (part).)
         Sec. 5012.0053.  NOTICE OF COMMISSIONERS' ELECTION. Notice
  of a commissioner's election shall be given by publishing notice
  once each week for two consecutive weeks in a newspaper with general
  circulation in the authority, with the first publication being made
  not earlier than the 60th day before the date of the election, and
  not later than the 21st day before the date of the election. (Acts
  63rd Leg., R.S., Ch. 379, Sec. 5 (part).)
         Sec. 5012.0054.  ELECTION RESULTS. As soon as practicable
  after each election held by the authority, the commission shall
  declare the results of the election. (Acts 63rd Leg., R.S., Ch.
  379, Sec. 6 (part).)
         Sec. 5012.0055.  COMMISSIONERS' OATH AND BOND. (a) Each
  commissioner shall:
               (1)  take an oath of office that contains the
  applicable provisions provided by law for members of the
  commissioners court; and
               (2)  execute a bond for $10,000 payable to the
  authority, conditioned on the faithful performance of the
  commissioner's duties as a commissioner.
         (b)  A commissioner's bond must be approved by the
  commission. (Acts 63rd Leg., R.S., Ch. 379, Sec. 6 (part).)
         Sec. 5012.0056.  VOTING REQUIREMENT. The concurrence of a
  majority of the commissioners present at a meeting where a quorum is
  present is sufficient in any matter relating to authority business.
  (Acts 63rd Leg., R.S., Ch. 379, Sec. 6 (part).)
         Sec. 5012.0057.  OFFICERS. (a) As soon as practicable after
  each election of commissioners, the commission shall elect one
  commissioner presiding officer and one commissioner secretary.
         (b)  The presiding officer shall preside at commission
  meetings.
         (c)  The secretary shall be responsible for maintaining and
  preserving the minutes, records, and other documents of the
  authority.
         (d)  The commission may select other officers and prescribe
  their duties. (Acts 63rd Leg., R.S., Ch. 379, Sec. 6 (part).)
         Sec. 5012.0058.  COMPENSATION OF COMMISSIONERS; EXPENSES.
  (a) Unless otherwise provided, each commissioner is entitled to
  receive a fee of not more than $50 a day for each day of service
  necessary to discharge the duties of a commissioner.
         (b)  Each commissioner is entitled to reimbursement for
  actual expenses incurred on behalf of the authority and approved by
  the commission.  (Acts 63rd Leg., R.S., Ch. 379, Sec. 6 (part).)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 5012.0101.  GENERAL POWERS. The authority may
  exercise:
               (1)  the rights, privileges, and functions provided by
  this chapter; and
               (2)  all powers, rights, privileges, and functions
  conferred by Chapters 60 and 62, Water Code. (Acts 63rd Leg., R.S.,
  Ch. 379, Secs. 1 (part), 3 (part).)
         Sec. 5012.0102.  POWERS REGARDING PORTS, WATERWAYS, AND
  FACILITIES. The authority may:
               (1)  acquire, take over, construct, maintain, repair,
  operate, develop, and regulate wharves, docks, warehouses, grain
  elevators, ship repair facilities, belt railways, lands, and all
  other facilities or aids consistent with or necessary for the
  operation or development of ports, waterways, or maritime commerce
  inside or outside the authority's boundaries; and
               (2)  construct, extend, improve, repair, maintain,
  reconstruct, own, use, and operate any facility necessary or
  convenient to the exercise of such powers, rights, privileges, and
  functions granted by this chapter. (Acts 63rd Leg., R.S., Ch. 379,
  Sec. 3 (part).)
         Sec. 5012.0103.  BYLAWS AND RULES. The authority may adopt
  bylaws and rules for the management and regulation of its affairs.
  (Acts 63rd Leg., R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0104.  GIFT OR PURCHASE OF PROPERTY. The
  authority by gift or purchase may acquire any property or any
  interest in property that is:
               (1)  inside or outside the authority's boundaries; and
               (2)  necessary or convenient to exercising a power,
  right, privilege, or function conferred on the authority by this
  chapter.  (Acts 63rd Leg., R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0105.  EMINENT DOMAIN. (a) To exercise a power
  provided by law, the authority may exercise the power of eminent
  domain to acquire any property and any interest in property inside
  the authority's boundaries.  The authority must exercise the power
  of eminent domain in the manner provided by Chapter 21, Property
  Code.
         (b)  The authority is a municipal corporation for the
  purposes of Section 21.021, Property Code.
         (c)  The authority is not required to give bond for appeal or
  bond for costs in any judicial proceeding related to the
  authority's exercise of eminent domain.
         (d)  The authority's authority to exercise the power of
  eminent domain expired on September 1, 2013, unless the authority
  submitted a letter to the comptroller in accordance with Section
  2206.101(b), Government Code, not later than December 31, 2012.
  (Acts 63rd Leg., R.S., Ch. 379, Secs. 3 (part), 11; New.)
         Sec. 5012.0106.  LEASE OF AUTHORITY FACILITIES. A lease
  under Section 60.101, Water Code, may contain any provision the
  commission determines is advantageous to the authority, including a
  provision for:
               (1)  the sale of a leased property at the termination of
  the lease; and
               (2)  the management and operation of a leased property
  by the lessee. (Acts 63rd Leg., R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0107.  SALE OF SURPLUS PROPERTY. The commission
  may order authority property sold as provided in Section 60.101,
  Water Code, if the property is not considered reasonably required
  to carry out the authority's plans. (Acts 63rd Leg., R.S., Ch. 379,
  Sec. 3 (part).)
         Sec. 5012.0108.  GENERAL AUTHORITY TO MAKE CONTRACTS AND
  EXECUTE INSTRUMENTS. The authority may make a contract or execute
  an instrument necessary or convenient to exercising a power, right,
  privilege, or function conferred on the authority by this chapter.
  (Acts 63rd Leg., R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0109.  COMPETITIVE BIDDING FOR CERTAIN CONTRACTS.
  (a) Before the commission enters into a contract for the
  expenditure of an amount of $25,000 or more, the authority shall
  submit the proposed contract for competitive bids as provided by
  this section.
         (b)  The commission shall publish notice of the time and
  place for the opening of sealed bids on a contract described by
  Subsection (a) in one or more newspapers of general circulation in
  this state, one of which must be a newspaper published in Jefferson
  County. The notice must be published once a week for two
  consecutive weeks, with the first publication being made not later
  than the 14th day before the date set for the opening of bids.
         (c)  The commission may reject any bid submitted under this
  section, but if the commission accepts a bid, the bid must be the
  lowest and best bid received.
         (d)  This section does not apply to:
               (1)  improvements performed by the United States;
               (2)  emergencies that require immediate action to
  protect persons or property;
               (3)  necessary emergency repairs to authority
  property; or
               (4)  contracts for personal or professional services or
  work done by the authority and paid for by the day as the work
  progresses. (Acts 63rd Leg., R.S., Ch. 379, Sec. 9.)
         Sec. 5012.0110.  OFFICERS, AGENTS, AND EMPLOYEES. The
  authority may employ, prescribe the duties of, and set the
  compensation of officers, agents, and employees. (Acts 63rd Leg.,
  R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0111.  SEAL. The authority may adopt and use a
  corporate seal. (Acts 63rd Leg., R.S., Ch. 379, Sec. 3 (part).)
         Sec. 5012.0112.  AUTHORITY TO SUE AND BE SUED. The authority
  may sue and be sued in its corporate name. (Acts 63rd Leg., R.S.,
  Ch. 379, Sec. 3 (part).)
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 5012.0151.  MAINTENANCE AND OPERATIONS TAX. The
  commission may impose an annual tax for the maintenance and
  operation of the authority and the authority's improvements at a
  rate not to exceed 20 cents for each $100 valuation of taxable
  property in the authority. (Acts 63rd Leg., R.S., Ch. 379, Sec. 10
  (part).)
         Sec. 5012.0152.  TAX ASSESSOR AND COLLECTOR. (a) The
  commission shall appoint a tax assessor and collector.
         (b)  The tax assessor and collector shall execute a bond in
  an amount set by the commission that is:
               (1)  at least twice the average daily balance of the
  authority in its depository for the preceding year; and
               (2)  not more than the estimated amount of revenues of
  the authority for any year. (Acts 63rd Leg., R.S., Ch. 379, Sec.
  7.)
         Sec. 5012.0153.  AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,
  AND ISSUE ASSOCIATED REVENUE BONDS. The authority may:
               (1)  borrow money for the authority's corporate
  purposes consistent with the constitution, this chapter, and
  Chapters 60-63, Water Code;
               (2)  borrow money or accept a grant from the United
  States or from a corporation or agency created or designated by the
  United States and, in connection with the loan or grant, enter into
  any agreement the United States or the corporation or agency may
  require; and
               (3)  make and issue bonds for money borrowed, in the
  manner provided by this chapter. (Acts 63rd Leg., R.S., Ch. 379,
  Sec. 3 (part).)
         Sec. 5012.0154.  AUTHORITY TO BORROW MONEY FOR CURRENT
  EXPENSES; EVIDENCE OF OBLIGATION. (a) The authority may:
               (1)  borrow money for current expenses; and
               (2)  evidence the borrowed money by warrants.
         (b)  The total amount of the warrants may not exceed the
  anticipated revenue. (Acts 63rd Leg., R.S., Ch. 379, Sec. 3
  (part).)
  SUBCHAPTER E. BONDS
         Sec. 5012.0201.  AUTHORITY TO ISSUE BONDS; ELECTION. (a)
  The authority may issue bonds for any corporate purpose.
         (b)  The authority may issue bonds for a purpose described by
  Section 5012.0102(1) or to acquire necessary or proper lands,
  rights of way, extension or improvements of belt railway lines, or
  construction or improvements of wharves, docks, ship repair
  facilities, or other facilities or aids to navigation.
         (c)  The authority may secure bonds issued under Subsection
  (b) by liens on properties acquired, constructed, or improved and
  pledge available revenues as additional security.
         (d)  An election to approve the issuance of bonds payable
  from taxes must be held in the manner provided for bond elections
  under Chapter 54, Water Code. (Acts 63rd Leg., R.S., Ch. 379, Secs.
  3 (part), 8 (part).)
         Sec. 5012.0202.  FORM OF BONDS. Authority bonds must be:
               (1)  issued in the authority's name; and
               (2)  signed by the commission's presiding officer.
  (Acts 63rd Leg., R.S., Ch. 379, Sec. 8 (part).)
         Sec. 5012.0203.  TERMS OF ISSUANCE. Authority bonds may be:
               (1)  sold for cash;
               (2)  issued on terms the commission determines in
  exchange for any property, or any interest in property, that the
  commission considers necessary or convenient for the corporate
  purpose for which the bonds are issued; or
               (3)  issued in exchange for like principal amounts of
  other obligations of the authority, whether matured or unmatured.
  (Acts 63rd Leg., R.S., Ch. 379, Sec. 8 (part).)
         Sec. 5012.0204.  DEPOSIT OF PROCEEDS. The proceeds of sale
  of authority bonds shall be deposited in one or more banks or trust
  companies, and shall be paid out according to the terms on which the
  authority and the purchasers of the bonds agree. (Acts 63rd Leg.,
  R.S., Ch. 379, Sec. 8 (part).)
         Sec. 5012.0205.  RESOLUTION PROVISIONS. (a) A resolution
  authorizing bonds may contain provisions approved by the commission
  that are not inconsistent with this chapter, including provisions:
               (1)  reserving the right to redeem the bonds or
  requiring the redemption of the bonds, at a time, in an amount, and
  at a price, not to exceed 105 percent of the principal amount of the
  bonds, plus accrued interest;
               (2)  providing for the setting aside of sinking funds
  or reserve funds and the regulation and disposition of those funds;
               (3)  securing the payment of the principal of and
  interest on the bonds and of the sinking fund or reserve fund
  payments associated with the bonds by pledging:
                     (A)  all or any part of the gross or net revenue
  subsequently received by the authority with respect to the property
  to be acquired or constructed with the bonds or the proceeds of the
  bonds; or
                     (B)  all or any part of the gross or net revenue
  subsequently received by the authority from any source;
               (4)  securing the payment of the principal of and
  interest on the bonds by pledging taxes;
               (5)  prescribing the purposes to which the bonds or any
  bonds subsequently issued, or the proceeds of the bonds, may be
  applied;
               (6)  agreeing to set and collect rates and charges
  sufficient to produce revenue adequate to:
                     (A)  pay all expenses necessary to the operation,
  maintenance, and replacement of and additions to the authority's
  property;
                     (B)  pay the principal of, and the interest and
  premium, if any, on bonds issued under this chapter when the bonds
  become due and payable;
                     (C)  pay all sinking fund or reserve fund payments
  for those bonds out of those revenues as and when they become due
  and payable;
                     (D)  fulfill the terms of any agreements made with
  the holders of the bonds or with any person on their behalf; and
                     (E)  discharge all other lawful obligations of the
  authority as and when the obligations become due;
               (7)  prescribing limitations on the issuance of
  additional bonds and subordinate lien bonds and on the agreements
  that may be made with the purchasers and successive holders of those
  bonds;
               (8)  regarding the construction, extension,
  improvement, reconstruction, operation, maintenance, and repair of
  the authority's properties and the carrying of insurance on all or
  any part of those properties covering loss, damage, or loss of use
  and occupancy resulting from specified risks;
               (9)  setting the procedure by which the authority may
  change the terms of a contract with the bondholders, the amount of
  bonds the holders of which must consent to that change, and the
  manner in which the consent may be given; and
               (10)  providing for the execution and delivery by the
  authority to a bank or trust company authorized by law to accept
  trusts, or to the United States or any officer of the United States,
  of indentures and agreements for the benefit of the bondholders
  setting forth any of the agreements authorized by this chapter to be
  made with or for the benefit of the bondholders and any other
  provisions that are customary in such indentures or agreements.
         (b)  A provision authorized by this section that is contained
  in a bond resolution is part of the contract between the authority
  and the bondholders. (Acts 63rd Leg., R.S., Ch. 379, Sec. 8 (part).)
         Sec. 5012.0206.  BOND ANTICIPATION NOTES. (a) The
  commission may declare an emergency because money is not available
  to meet any of the authority's needs, including to pay the principal
  of and interest on authority bonds.
         (b)  Bond anticipation notes may bear interest at a rate not
  to exceed 10 percent and must mature not later than one year after
  the date of issuance.
         (c)  Bond anticipation notes issued by the authority must be
  taken up with the proceeds of the bonds, or the bonds may be issued
  and delivered in exchange for the bond anticipation notes. (Acts
  63rd Leg., R.S., Ch. 379, Sec. 8 (part).)
         Sec. 5012.0207.  REFUNDING BONDS. (a) The authority may
  make and issue bonds for the purpose of refunding or refinancing
  outstanding bonds authorized and issued by the authority under this
  chapter or other law and the interest and any premium on the bonds
  to maturity or on any earlier redemption date specified in the
  resolution authorizing the issuance of the refunding bonds.
         (b)  Refunding bonds issued by the authority may:
               (1)  be issued to refund more than one series of
  outstanding bonds;
               (2)  combine the pledges of the outstanding bonds for
  the security of the refunding bonds; or
               (3)  be secured by other or additional revenue.
         (c)  The provisions of this chapter regarding the issuance of
  bonds, the terms and provisions of bonds, and the remedies of the
  bondholders apply to refunding bonds issued by the authority.
         (d)  The comptroller shall register the refunding bonds
  issued by the authority on the surrender and cancellation of the
  bonds to be refunded.
         (e)  Instead of issuing bonds to be registered on the
  surrender and cancellation of the bonds to be refunded, the
  authority, in the resolution authorizing the issuance of refunding
  bonds, may provide for the sale of the refunding bonds and the
  deposit of the proceeds at the places at which the bonds to be
  refunded are payable. In that case, the refunding bonds may be
  issued in an amount sufficient to pay the interest and premium, if
  any, on the bonds to be refunded to the bonds' maturity date or
  specified earlier redemption date, and the comptroller shall
  register the refunding bonds without the concurrent surrender and
  cancellation of the bonds to be refunded.
         (f)  The authority may also refund outstanding bonds in the
  manner provided by Chapters 60-63, Water Code. (Acts 63rd Leg., R.S., Ch. 379, Sec. 8 (part).)
 
  CHAPTER 5016. PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY,
  TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 5016.0001.  DEFINITIONS 
  Sec. 5016.0002.  FORMER NAME OF AUTHORITY 
  SUBCHAPTER B. PORT COMMISSION
  Sec. 5016.0051.  COMPOSITION OF PORT COMMISSION 
  Sec. 5016.0052.  APPOINTMENT OF PORT COMMISSIONERS;
                    TERMS; ELIGIBILITY 
  Sec. 5016.0053.  FILING OF FINANCIAL STATEMENT BY PORT
                    COMMISSIONERS 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 5016.0101.  USE AND DISPOSITION OF NAVAL PROPERTY 
  Sec. 5016.0102.  ELECTIONS 
  Sec. 5016.0103.  SECURITY AND LAW ENFORCEMENT 
  Sec. 5016.0104.  CONTRACTS FOR SECURITY AND LAW
                    ENFORCEMENT SERVICES 
  CHAPTER 5016. PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY,
  TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 5016.0001.  DEFINITIONS. In this chapter:
               (1)  "Adjacent property" means the approximately 433
  acres that the authority owns in San Patricio County that is bounded
  on the east by the western boundary of the former Naval Station
  Ingleside, on the north by Farm-to-Market Road 1069, on the west by
  the corporate limits of the City of Ingleside on the Bay, and on the
  south by the corporate limits of the City of Ingleside on the Bay
  and the north shoreline of Corpus Christi Bay. The term does not
  include property:
                     (A)  that the authority purchased from this state
  under former Article 8225, Revised Statutes; or
                     (B)  that was granted to the authority by this
  state under any general or special law.
               (2)  "Authority" means the Port of Corpus Christi
  Authority of Nueces County, Texas.
               (3)  "Naval property" means:
                     (A)  the approximately 576.615 acres of land and
  submerged land in San Patricio and Nueces Counties, improvements,
  and personal property, if any, that reverted to the authority when
  former Naval Station Ingleside closed, other than property that the
  authority purchased from this state under former Article 8225,
  Revised Statutes, or that was granted to the authority by this state
  under any general or special law; and
                     (B)  the adjacent property.
               (4)  "Port commission" means the authority's governing
  body.
               (5)  "Port commissioner" means a member of the port
  commission. (Acts 67th Leg., R.S., Ch. 165, Sec. 2; Acts 68th Leg.,
  R.S., Ch. 397, Secs. 1, 1A as added Acts 81st Leg., R.S., Ch. 53.)
         Sec. 5016.0002.  FORMER NAME OF AUTHORITY. Before May 20,
  1981, the authority was known as the Nueces County Navigation
  District No. 1. (Acts 67th Leg., R.S., Ch. 165, Sec. 1; New.)
  SUBCHAPTER B. PORT COMMISSION
         Sec. 5016.0051.  COMPOSITION OF PORT COMMISSION. The port
  commission is composed of seven port commissioners. (Acts 68th
  Leg., R.S., Ch. 397, Sec. 1A as added Acts 81st Leg., R.S., Ch. 498;
  Acts 78th Leg., R.S., Ch. 1334, Sec. 3 (part).)
         Sec. 5016.0052.  APPOINTMENT OF PORT COMMISSIONERS; TERMS;
  ELIGIBILITY. (a) Port commissioners are appointed as follows:
               (1)  the Commissioners Court of Nueces County shall
  appoint three port commissioners;
               (2)  the city council of the City of Corpus Christi
  shall appoint three port commissioners; and
               (3)  the Commissioners Court of San Patricio County
  shall appoint one port commissioner.
         (b)  Port commissioners serve staggered three-year terms
  that expire in January.
         (c)  A port commissioner may not serve more than four full
  terms.
         (d)  A person must have been a resident of Nueces County for
  at least six months to be eligible for appointment to the port
  commission by the Commissioners Court of Nueces County or the city
  council of the City of Corpus Christi.
         (e)  Subsections (c) and (d) do not apply to a person serving
  as a port commissioner on June 9, 1995. (Acts 68th Leg., R.S., Ch.
  397, Secs. 2, 3, 4(c), (d); Acts 74th Leg., R.S., Ch. 469, Sec. 2;
  Acts 78th Leg., R.S., Ch. 1334, Sec. 3 (part).)
         Sec. 5016.0053.  FILING OF FINANCIAL STATEMENT BY PORT
  COMMISSIONERS. (a) Not later than April 30 of each year, a port
  commissioner shall file with the Texas Ethics Commission a
  financial statement that complies with Sections 572.022-572.024,
  Government Code.
         (b)  The filed statement is a public record. (Acts 68th
  Leg., R.S., Ch. 397, Sec. 4A.)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 5016.0101.  USE AND DISPOSITION OF NAVAL PROPERTY. (a)
  The authority may use naval property in ways that replace and
  enhance the economic benefits generated by the former Naval Station
  Ingleside through diversified activities, including uses to
  foster:
               (1)  job creation and retention;
               (2)  economic development;
               (3)  industry;
               (4)  commerce;
               (5)  manufacturing;
               (6)  housing;
               (7)  recreation; and
               (8)  infrastructure installation on naval property.
         (b)  The port commission may:
               (1)  declare any portion of naval property surplus if
  the property is not needed for a navigation-related project; and
               (2)  sell or lease the surplus property on terms the
  port commission considers advisable to carry out the purposes of
  this chapter.
         (c)  Notwithstanding any other law and subject to the terms
  of this subsection, the authority may sell or lease property
  declared surplus under this section with or without public bidding.
  The authority may not sell naval property declared surplus under
  this section in a private sale for less than the property's fair
  market value. The authority shall obtain an appraisal of the
  surplus property, which is conclusive evidence of the surplus
  property's fair market value.
         (d)  The authority may contract with another person for
  assistance in accomplishing the purposes of this section by
  competitive bidding or negotiated contract as the port commission
  considers appropriate, desirable, and in the authority's best
  interests. (Acts 68th Leg., R.S., Ch. 397, Secs. 4B(a), (b), (c),
  (d) as added Acts 81st Leg., R.S., Ch. 498.)
         Sec. 5016.0102.  ELECTIONS. An election relating to the
  authority must be held in the authority as a whole and not on a
  county-by-county basis. (Acts 68th Leg., R.S., Ch. 397, Sec. 4B as
  added Acts 81st Leg., R.S., Ch. 53; Acts 78th Leg., R.S., Ch. 1334,
  Sec. 4.)
         Sec. 5016.0103.  SECURITY AND LAW ENFORCEMENT. (a) The port
  commission may adopt, amend, repeal, and enforce an ordinance,
  rule, or police regulation necessary to:
               (1)  protect, secure, and defend the ship channels and
  waterways in the authority's jurisdiction and facilities served by
  those ship channels and waterways;
               (2)  promote the health, safety, and general welfare of
  any person using the ship channels and waterways in the authority's
  jurisdiction; or
               (3)  comply with a federal law or regulation or
  implement a directive or standard of the federal government,
  including the United States Department of Homeland Security and the
  United States Coast Guard, relating to securing ship channels and
  waterways and facilities served by ship channels and waterways and
  preventing terrorist attacks on ship channels, waterways,
  associated maritime facilities, and other facilities served by ship
  channels and waterways.
         (b)  In the enforcement of an authority ordinance, rule, or
  police regulation, a sheriff, constable, or other licensed peace
  officer or a peace officer employed or appointed by the port
  commission may make arrests, serve criminal warrants, subpoenas, or
  writs, and perform any other service or duty that may be performed
  by any sheriff, constable, or other licensed peace officer in
  enforcing other laws of this state.
         (c)  In adopting an ordinance, rule, or police regulation
  under Subsection (a) of this section, the port commission shall
  comply with the procedures provided by Sections 60.074 and 60.075,
  Water Code. (Acts 68th Leg., R.S., Ch. 397, Secs. 4C(a), (b), (c).)
         Sec. 5016.0104.  CONTRACTS FOR SECURITY AND LAW ENFORCEMENT
  SERVICES. (a) The authority may enter into an interlocal agreement
  with this state or a county, municipality, or other political
  subdivision of this state to jointly provide, and share the costs
  of, security for the ship channels and waterways in the authority's
  jurisdiction.
         (b)  To protect the public interest, the authority may
  contract with a qualified party, including the federal government,
  Nueces County, or San Patricio County, for the provision of law
  enforcement services in all or part of the authority's jurisdiction. (Acts 68th Leg., R.S., Ch. 397, Secs. 4C(d), (e).)
 
  CHAPTER 5018. ORANGE COUNTY NAVIGATION AND PORT DISTRICT OF ORANGE
  COUNTY, TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 5018.0001.  DEFINITIONS 
  Sec. 5018.0002.  FINDINGS OF BENEFIT AND PURPOSE 
  Sec. 5018.0003.  DISTRICT TERRITORY 
  Sec. 5018.0004.  LIBERAL CONSTRUCTION OF CHAPTER 
  SUBCHAPTER B. DISTRICT ADMINISTRATION
  Sec. 5018.0051.  BOARD OF COMMISSIONERS; TERM; ELECTION 
  Sec. 5018.0052.  COMPOSITION OF BOARD; QUALIFICATIONS 
  Sec. 5018.0053.  POLLING PLACES 
  Sec. 5018.0054.  COMMISSIONER'S OATH AND BOND 
  Sec. 5018.0055.  COMPENSATION OF COMMISSIONERS;
                    EXPENSES 
  Sec. 5018.0056.  VACANCIES 
  Sec. 5018.0057.  OFFICERS AND EMPLOYEES 
  Sec. 5018.0058.  OFFICER'S OR EMPLOYEE'S SURETY BOND 
  Sec. 5018.0059.  DISTRICT OFFICE 
  Sec. 5018.0060.  CONFLICT OF INTEREST; CRIMINAL PENALTY 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 5018.0101.  GENERAL AND NAVIGATION DISTRICT POWERS 
  Sec. 5018.0102.  POWERS REGARDING WHARVES, DOCKS, AND
                    OTHER FACILITIES 
  Sec. 5018.0103.  LIMITATION ON CERTAIN POWERS 
  Sec. 5018.0104.  BYLAWS AND RULES 
  Sec. 5018.0105.  ACQUISITION OF PROPERTY; EMINENT
                    DOMAIN; DAMAGES 
  Sec. 5018.0106.  ACQUISITION OF PROPERTY FROM CITY OF
                    ORANGE 
  Sec. 5018.0107.  GENERAL AUTHORITY TO MAKE CONTRACTS
                    AND EXECUTE INSTRUMENTS 
  Sec. 5018.0108.  AUTHORITY TO SUE AND BE SUED 
  Sec. 5018.0109.  SEAL 
  Sec. 5018.0110.  POWERS AND LIMITATIONS REGARDING
                    LEVINGSTON ISLAND IN LOUISIANA 
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 5018.0151.  DEPOSITORY 
  Sec. 5018.0152.  ACCOUNTS, CONTRACTS, AND OTHER
                    RECORDS; PUBLIC INSPECTION 
  Sec. 5018.0153.  AUTHORITY TO BORROW MONEY, ACCEPT
                    GRANTS, AND ISSUE ASSOCIATED BONDS 
  Sec. 5018.0154.  AUTHORITY TO BORROW MONEY FOR CURRENT
                    EXPENSES; EVIDENCE OF OBLIGATION 
  Sec. 5018.0155.  AD VALOREM TAX FOR MAINTENANCE AND
                    OPERATIONS; ELECTION PROCEDURE 
  Sec. 5018.0156.  IMPOSITION OF TAXES; TAX
                    CERTIFICATION; TAX
                    ASSESSOR-COLLECTOR 
  SUBCHAPTER E. BONDS
  Sec. 5018.0201.  DEFINITION 
  Sec. 5018.0202.  AUTHORITY TO ISSUE BONDS 
  Sec. 5018.0203.  ELECTION FOR BONDS PAYABLE FROM AD
                    VALOREM TAXES 
  Sec. 5018.0204.  PROVISIONS OF CERTAIN BOND RESOLUTIONS
                    OR ORDERS; AUTHORITY TO ADOPT OR
                    EXECUTE OTHER PROCEEDINGS OR
                    INSTRUMENTS 
  Sec. 5018.0205.  FORM OF BONDS 
  Sec. 5018.0206.  MATURITY 
  Sec. 5018.0207.  USE OF BOND PROCEEDS 
  Sec. 5018.0208.  REFUNDING BONDS 
  CHAPTER 5018. ORANGE COUNTY NAVIGATION AND PORT DISTRICT OF ORANGE
  COUNTY, TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 5018.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of
  commissioners.
               (2)  "Commissioner" means a board member.
               (3)  "District" means the Orange County Navigation and
  Port District of Orange County, Texas. (Acts 53rd Leg., R.S., Ch.
  370, Sec. 1 (part); New.)
         Sec. 5018.0002.  FINDINGS OF BENEFIT AND PURPOSE. (a) The
  creation of the district is essential to accomplish the purposes of
  Section 59, Article XVI, Texas Constitution, including, to the
  extent authorized by this chapter:
               (1)  the supervision, maintenance, development,
  extension, and improvement of navigation in the district;
               (2)  the maintenance, development, extension, and
  improvement of port facilities and dock facilities in the district;
  and
               (3)  the development of the Port of Orange in the
  district.
         (b)  The district:
               (1)  is essential to the general welfare of this state
  for the development of maritime shipping to and from the state's
  ports;
               (2)  is in the interest of national defense, the Port of
  Orange being strategically located on the Gulf Coast with an
  inland-protected harbor and in a rapidly developing industrial area
  in which shipyards and ship-storing basins are located; and
               (3)  will result in:
                     (A)  material benefits and improvements to
  district territory;
                     (B)  the increase of the taxable value of property
  in the district; and
                     (C)  material benefit to that part of the state in
  which the district is located.
         (c)  All property in the district and in this state will
  benefit from the district and the improvements and facilities
  acquired or constructed under this chapter.  (Acts 53rd Leg., R.S.,
  Ch. 370, Sec. 1 (part); Acts 55th Leg., R.S., Ch. 80, Sec. 4.)
         Sec. 5018.0003.  DISTRICT TERRITORY. (a) The district's
  boundaries are coextensive with the boundaries of Orange County,
  unless the district's territory has been modified under:
               (1)  Section 3 or 3a, Chapter 103, Acts of the 41st
  Legislature, 1st Called Session, 1929 (Article 8263a, Vernon's
  Texas Civil Statutes), before August 30, 1971;
               (2)  Subchapter H, Chapter 62, Water Code; or
               (3)  other law.
         (b)  The district includes all of the property within the
  district's boundaries. (Acts 53rd Leg., R.S., Ch. 370, Sec. 1
  (part); New.)
         Sec. 5018.0004.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed to effect its purposes. (Acts
  53rd Leg., R.S., Ch. 370, Sec. 19.)
  SUBCHAPTER B. DISTRICT ADMINISTRATION
         Sec. 5018.0051.  BOARD OF COMMISSIONERS; TERM; ELECTION.
  (a) The district is governed by a board composed of five elected
  commissioners.
         (b)  Commissioners serve staggered four-year terms.
         (c)  The district shall hold an election in the district on
  the uniform election date in May of each even-numbered year to elect
  commissioners.
         (d)  The board has the rights and powers conferred and
  imposed on navigation and canal commissioners and commissioners
  courts by Chapter 62, Water Code. (Acts 53rd Leg., R.S., Ch. 370,
  Secs. 3 (part), 8(a) (part), (c).)
         Sec. 5018.0052.  COMPOSITION OF BOARD; QUALIFICATIONS.  (a)  
  One commissioner must reside in each county commissioners precinct
  of Orange County and one commissioner must reside in the county at
  large.
         (b)  Each commissioner must:
               (1)  be a qualified voter of the district; and
               (2)  own taxable real property located in the district.
         (c)  The candidates receiving the highest number of votes
  from each county commissioners precinct and the county at large
  shall be declared elected.  (Acts 53rd Leg., R.S., Ch. 370, Secs. 3
  (part), 8(a) (part).)
         Sec. 5018.0053.  POLLING PLACES. For all elections held
  under this chapter, the board, in each election order, shall
  designate the number and location of polling places, provided that
  at least one polling place is located in each of the county
  commissioners precincts.  (Acts 53rd Leg., R.S., Ch. 370, Sec. 17
  (part).)
         Sec. 5018.0054.  COMMISSIONER'S OATH AND BOND. Not later
  than the 10th day after the date of the commissioner's election,
  each commissioner shall:
               (1)  take and subscribe an oath of office with
  conditions in the oath as provided by law for members of the county
  commissioners court; and
               (2)  enter into a good and sufficient bond in the amount
  of $1,000 payable to the district, conditioned on the faithful
  performance of the commissioner's duties as a commissioner. (Acts
  53rd Leg., R.S., Ch. 370, Sec. 13.)
         Sec. 5018.0055.  COMPENSATION OF COMMISSIONERS; EXPENSES.
  (a) At the first meeting after each election, the commissioners by
  order shall set the amount of compensation to be received by a
  commissioner for each day served, not to exceed $600 per year, plus
  actual traveling expenses.
         (b)  Each month or as soon as practicable following each
  month, each commissioner shall file with the district's secretary a
  statement showing the amount owed to the commissioner. A check may
  not be issued to the commissioner until the commissioner has filed
  the statement with the secretary. (Acts 53rd Leg., R.S., Ch. 370,
  Sec. 10.)
         Sec. 5018.0056.  VACANCIES. (a) A vacancy on the board
  shall be filled by board appointment until the next commissioners'
  election. If the vacant position is not regularly scheduled to be
  filled at that election, the person elected to fill the position
  serves only for the remainder of the unexpired term.
         (b)  A person appointed under this section must have the same
  qualifications as a person elected to the board. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 8(e).)
         Sec. 5018.0057.  OFFICERS AND EMPLOYEES. (a) As soon as
  practicable after each election of commissioners, the board shall
  elect a president, vice president, and secretary and treasurer.
         (b)  The board may:
               (1)  employ a port director and other officers as
  required to manage and operate the district and, subject to the
  board's orders, delegate that authority;
               (2)  employ and prescribe the duties of officers,
  agents, and employees;
               (3)  set the compensation of officers, agents, and
  employees; and
               (4)  remove any employee. (Acts 53rd Leg., R.S., Ch.
  370, Secs. 2 (part), 7, 11 (part).)
         Sec. 5018.0058.  OFFICER'S OR EMPLOYEE'S SURETY BOND. (a) A
  bond required of a district officer or employee must be executed by
  a surety company authorized to do business in this state as surety
  on the bond.
         (b)  The district may pay the premium on the bond. (Acts 53rd
  Leg., R.S., Ch. 370, Sec. 11 (part).)
         Sec. 5018.0059.  DISTRICT OFFICE. A regular office shall be
  established and maintained for conducting district business in the
  district's territory. (Acts 53rd Leg., R.S., Ch. 370, Sec. 9
  (part).)
         Sec. 5018.0060.  CONFLICT OF INTEREST; CRIMINAL PENALTY.
  (a) A district commissioner, engineer, or employee, personally or
  as an agent for another person, may not benefit directly or
  indirectly from a sale, purchase, or contract entered into by the
  board.
         (b)  A person commits an offense if the person violates this
  section. An offense under this subsection is a misdemeanor
  punishable by:
               (1)  a fine not to exceed $1,000;
               (2)  confinement in the county jail for not less than
  six months or more than one year; or
               (3)  both the fine and confinement. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 11 (part).)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 5018.0101.  GENERAL AND NAVIGATION DISTRICT POWERS.
  The district has:
               (1)  the powers of government and the authority to
  exercise the rights, privileges, and functions specified by this
  chapter; and
               (2)  all powers, rights, privileges, and functions
  conferred by general law, including Chapter 62, Water Code, on any
  navigation district created or operating under Section 59, Article
  XVI, Texas Constitution. (Acts 53rd Leg., R.S., Ch. 370, Secs. 1
  (part), 2 (part), 3 (part).)
         Sec. 5018.0102.  POWERS REGARDING WHARVES, DOCKS, AND OTHER
  FACILITIES. The district may:
               (1)  acquire, take over, construct, maintain, repair,
  operate, develop, and regulate wharves, docks, warehouses, grain
  elevators, dumping facilities, belt railways, lands, and other
  facilities or aids consistent with or necessary to the operation or
  development of ports or waterways in the district; and
               (2)  construct, extend, improve, repair, maintain, and
  reconstruct, cause to be constructed, extended, improved,
  repaired, maintained, and reconstructed, and own, rent, lease, use,
  and operate any facility of any kind necessary or convenient to the
  exercise of the powers, rights, privileges, and functions granted
  by this chapter. (Acts 53rd Leg., R.S., Ch. 370, Sec. 2 (part).)
         Sec. 5018.0103.  LIMITATION ON CERTAIN POWERS. This chapter
  may not be construed as granting the district or the board any power
  over the appointment, operations, or conduct of:
               (1)  a branch pilot appointed under Section 69.037,
  Transportation Code; or
               (2)  the board of pilot commissioners described by
  Section 69.011, Transportation Code. (Acts 53rd Leg., R.S., Ch.
  370, Sec. 2(j) (part).)
         Sec. 5018.0104.  BYLAWS AND RULES. The district may adopt
  bylaws and rules to manage and regulate its affairs. (Acts 53rd
  Leg., R.S., Ch. 370, Sec. 2 (part).)
         Sec. 5018.0105.  ACQUISITION OF PROPERTY; EMINENT DOMAIN;
  DAMAGES. (a) In this section, "property" means property of any
  kind, including a lighter, a tug, a barge, and other floating
  equipment of any nature.
         (b)  If necessary or convenient to exercising a power, right,
  privilege, or function conferred on the district by this chapter,
  the district:
               (1)  by gift or purchase may acquire property or an
  interest in property that is inside or outside the district's
  boundaries; or
               (2)  by exercising the power of eminent domain may
  acquire property or an interest in property that is inside the
  district's boundaries.
         (c)  The district may exercise the power of eminent domain to
  acquire the fee simple title to or an easement or right-of-way over
  and through any land, water, or land under water, private or public,
  in the district that the board determines is necessary or
  convenient to carry out a purpose or power granted to the district
  by this chapter.
         (d)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except that the
  district is not required to give bond for appeal or bond for costs
  in any judicial proceeding.
         (e)  In exercising the power of eminent domain against a
  person that has the power of eminent domain or a receiver or trustee
  for that person, the district may acquire an easement only and not
  the fee simple title.
         (f)  A condemnation proceeding is under the board's
  direction and must be in the district's name.
         (g)  Except as provided by Subsections (h) and (i), the
  assessment of damages and all procedures with reference to
  condemnation, appeal, and payment must conform to Chapter 21,
  Property Code.
         (h)  If the district's exercise of a power granted by this
  chapter makes necessary the relocation of a railroad line or
  right-of-way, the district shall pay the cost of the relocation and
  any damage incurred in changing and adjusting the railroad lines
  and grades.
         (i)  The damages to the owner of public utilities and
  communication facilities and properties must include the actual
  loss, costs, and expenses incident to the removal and relocation of
  the facilities and properties, including:
               (1)  the costs of installing the facilities in a new
  location;
               (2)  the costs of any land or rights or interest in
  land; and
               (3)  any other property rights acquired to accomplish
  the removal and relocation.
         (j)  The district's authority under this section to exercise
  the power of eminent domain expired on September 1, 2013, unless the
  district submitted a letter to the comptroller in accordance with
  Section 2206.101(b), Government Code, not later than December 31,
  2012. (Acts 53rd Leg., R.S., Ch. 370, Sec. 2 (part); New.)
         Sec. 5018.0106.  ACQUISITION OF PROPERTY FROM CITY OF
  ORANGE. (a) The district may acquire from the City of Orange, with
  the consent of the City of Orange as provided by the city's charter,
  the city's port properties, lands, assets, liabilities, contracts,
  improvement plans, money on hand, and facilities acquired by the
  city for port purposes.
         (b)  The manner of the acquisition authorized under this
  section must be determined between the City of Orange's city
  commission and the board. (Acts 53rd Leg., R.S., Ch. 370, Sec. 4.)
         Sec. 5018.0107.  GENERAL AUTHORITY TO MAKE CONTRACTS AND
  EXECUTE INSTRUMENTS. The district may make a contract or execute an
  instrument necessary or convenient to exercise a power, right,
  privilege, or function granted to the district by this chapter.
  (Acts 53rd Leg., R.S., Ch. 370, Sec. 2 (part).)
         Sec. 5018.0108.  AUTHORITY TO SUE AND BE SUED. The district
  may sue and be sued in its corporate name. (Acts 53rd Leg., R.S.,
  Ch. 370, Sec. 2 (part).)
         Sec. 5018.0109.  SEAL. The district may adopt and use a
  corporate seal. (Acts 53rd Leg., R.S., Ch. 370, Sec. 2 (part).)
         Sec. 5018.0110.  POWERS AND LIMITATIONS REGARDING
  LEVINGSTON ISLAND IN LOUISIANA. (a) On approval by resolution of
  the board, the district may purchase for the district the following
  property: Levingston Island, also known as Harbor Island, located
  in the bend of the Sabine River, opposite the City of Orange and
  located in Calcasieu Parish, Louisiana.
         (b)  The property purchased under this section is not
  territory in the district's boundaries. The authority to purchase
  the property described in this section and the purchase of that
  property is not the annexation or attempted annexation of the
  property to the State of Texas from the State of Louisiana.
         (c)  The district may:
               (1)  provide projects and facilities on the property
  purchased under this section for purposes of economic development
  to benefit the district; and
               (2)  issue bonds and other obligations of the district
  secured by the revenue from the projects and facilities provided on
  the property purchased under this section for the purposes of
  constructing, acquiring, and maintaining those projects and
  facilities.
         (d)  The district may not impose ad valorem taxes in the
  district to finance the projects and facilities provided under this
  section. (Acts 53rd Leg., R.S., Ch. 370, Sec. 2A.)
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 5018.0151.  DEPOSITORY. The board shall select a
  depository or depositories for the district in the manner provided
  by law for the selection of a county depository. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 12.)
         Sec. 5018.0152.  ACCOUNTS, CONTRACTS, AND OTHER RECORDS;
  PUBLIC INSPECTION. (a) The board shall cause to be kept complete
  and accurate accounts conforming to approved methods of
  bookkeeping.
         (b)  The secretary shall:
               (1)  keep a true and full account of board meetings and
  proceedings; and
               (2)  preserve board minutes, contracts, notices,
  accounts, receipts, and other records in a fireproof vault or safe.
         (c)  The records kept and preserved by the secretary under
  Subsection (b) are:
               (1)  district property; and
               (2)  subject to public inspection. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 9 (part).)
         Sec. 5018.0153.  AUTHORITY TO BORROW MONEY, ACCEPT GRANTS,
  AND ISSUE ASSOCIATED BONDS. (a) The district may:
               (1)  borrow money for any purpose that is provided by:
                     (A)  this chapter; or
                     (B)  the general laws relating to navigation
  districts;
               (2)  borrow money or accept a grant from the United
  States or from a corporation or agency created or designated by the
  United States and, in connection with the loan or grant, enter into
  any agreement the United States or the corporation or agency
  requires; and
               (3)  make and issue bonds for money borrowed, in the
  manner and to the extent provided by this chapter.
         (b)  The district may make and issue bonds under Subsection
  (a)(3) that are:
               (1)  revenue bonds;
               (2)  tax bonds; or
               (3)  combination tax-revenue bonds. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 2 (part).)
         Sec. 5018.0154.  AUTHORITY TO BORROW MONEY FOR CURRENT
  EXPENSES; EVIDENCE OF OBLIGATION. (a) The district may:
               (1)  borrow money for current expenses; and
               (2)  evidence the borrowed money by warrants payable
  not later than the close of the calendar year for which the loan is
  made.
         (b)  The amount of the warrants may not exceed the
  anticipated revenue. (Acts 53rd Leg., R.S., Ch. 370, Sec. 2
  (part).)
         Sec. 5018.0155.  AD VALOREM TAX FOR MAINTENANCE AND
  OPERATIONS; ELECTION PROCEDURE. (a) The district may impose an
  annual ad valorem tax at a rate not to exceed 15 cents on each $100
  valuation of taxable property in the district for the maintenance,
  operation, and upkeep of the district and the facilities,
  properties, and improvements constructed or acquired by the
  district.
         (b)  Elections may be held to increase, reduce, or abate a
  tax imposed under this section, subject to the limit prescribed by
  Subsection (a).
         (c)  A maintenance tax election must be held in the same
  manner as a bond election. (Acts 53rd Leg., R.S., Ch. 370, Secs. 5
  (part), 17 (part).)
         Sec. 5018.0156.  IMPOSITION OF TAXES; TAX CERTIFICATION; TAX
  ASSESSOR-COLLECTOR. (a) A tax authorized by this chapter, whether
  for bonds or maintenance purposes, must be imposed by the board.
         (b)  Each year, the board shall certify to the Orange County
  tax assessor-collector the rate or rates of tax that the board has
  imposed for bonds and maintenance purposes.
         (c)  The Orange County tax assessor-collector shall assess
  and collect taxes imposed by the board in the manner provided by
  Chapter 62, Water Code. (Acts 53rd Leg., R.S., Ch. 370, Sec. 3
  (part).)
  SUBCHAPTER E. BONDS
         Sec. 5018.0201.  DEFINITION. In this subchapter, "net
  revenue" means the gross revenue derived from the operation of the
  district's improvements and facilities the income of which is
  pledged to the payment of district bonds less the reasonable
  expense of maintaining and operating those improvements and
  facilities, including necessary repair, upkeep, and insurance
  expenses for those improvements and facilities. (Acts 53rd Leg.,
  R.S., Ch. 370, Sec. 14(a) (part).)
         Sec. 5018.0202.  AUTHORITY TO ISSUE BONDS. (a) To provide
  money for any purpose provided by this chapter or another law
  relating to navigation districts, the board may issue bonds
  secured:
               (1)  solely by a pledge of and payable from the net
  revenue derived from the operation of all or a designated part of
  the district's improvements and facilities then in existence or to
  be constructed or acquired;
               (2)  by a pledge of and payable from an ad valorem tax
  on all taxable property in the district under Section 59, Article
  XVI, Texas Constitution; or
               (3)  by a combination of the methods prescribed under
  Subdivisions (1) and (2).
         (b)  If bonds issued under Subsection (a)(1) are
  outstanding, the board shall charge and collect fees, tolls, and
  charges sufficient to:
               (1)  pay all maintenance and operation expenses of the
  improvements and facilities, the income of which is pledged;
               (2)  pay the interest on the bonds as it accrues;
               (3)  pay the principal of the bonds as it matures; and
               (4)  make any other payments prescribed in the bond
  order or resolution.
         (c)  If bonds issued under Subsection (a)(2) are
  outstanding, the board shall annually impose a tax sufficient to
  pay:
               (1)  the interest on the bonds as it accrues; and
               (2)  the principal of the bonds as it matures.
         (d)  If bonds issued under Subsection (a)(3) are
  outstanding, the board shall charge and collect fees, tolls, and
  charges so that, in the manner prescribed in the bond order or
  resolution, the amount of tax to be collected may be reduced or
  abated to the extent that the revenue from the operation of the
  improvements and facilities, the income of which is pledged, is
  sufficient to:
               (1)  meet the requirements for maintenance and
  operation of the improvements and facilities; and
               (2)  provide money for the bonds as prescribed in the
  bond order or resolution.
         (e)  All district bonds must be authorized by board
  resolution or order.
         (f)  Bonds payable solely from net revenue may be issued
  without an election. (Acts 53rd Leg., R.S., Ch. 370, Secs. 14(a)
  (part), (b) (part), (c) (part), (e) (part).)
         Sec. 5018.0203.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
  TAXES. (a) Bonds, other than refunding bonds, payable wholly or
  partly from ad valorem taxes may not be issued unless authorized by
  an election called by the board at which a majority of the votes
  cast favor the bond issuance.
         (b)  Notice of the election must be given by publishing a
  substantial copy of the order calling the election in a newspaper of
  general circulation in the district on the same day in each of two
  successive weeks. The first publication must be not later than the
  14th day before the date of the election. No other notice of the
  election is necessary.
         (c)  If the bonds are to be payable solely from taxes, the
  ballot must have printed on it "For the bonds and the levy of taxes
  in payment thereof" and the contrary of that proposition.
         (d)  If the bonds are to be payable both from net revenue and
  taxes, the ballot must have printed on it "For the bonds, the pledge
  of net revenues, and the levy of taxes adequate to provide for the
  payment thereof" and the contrary of that proposition. (Acts 53rd
  Leg., R.S., Ch. 370, Secs. 14(b) (part), (e) (part).)
         Sec. 5018.0204.  PROVISIONS OF CERTAIN BOND RESOLUTIONS OR
  ORDERS; AUTHORITY TO ADOPT OR EXECUTE OTHER PROCEEDINGS OR
  INSTRUMENTS. (a) In the resolution or order adopted by the board
  authorizing the issuance of bonds payable wholly or partly from net
  revenue, the board may:
               (1)  provide for:
                     (A)  the flow of money; and
                     (B)  the establishment and maintenance of an
  interest and sinking fund, a reserve fund, and any other funds;
               (2)  make any additional covenants with respect to the
  bonds, the pledged revenue, and the operation, maintenance, and
  upkeep of the improvements and facilities the income of which is
  pledged, including a provision for the leasing of all or a part of
  the improvements and facilities and the use or pledge of money
  derived from those leases, as the board considers appropriate;
               (3)  prohibit the further issuance of bonds or other
  obligations payable from the pledged net revenue;
               (4)  reserve the right to issue additional bonds to be
  secured by a pledge of and payable from the net revenue on a parity
  with, or subordinate to, the lien and pledge in support of the bonds
  being issued, subject to any conditions provided by the resolution
  or order; or
               (5)  include any other provision or covenant, as
  determined by the board, that is not prohibited by the Texas
  Constitution or this chapter.
         (b)  The board may adopt and execute any other proceeding or
  instrument necessary or convenient to issue the bonds. (Acts 53rd
  Leg., R.S., Ch. 370, Sec. 14(a) (part).)
         Sec. 5018.0205.  FORM OF BONDS. District bonds must be:
               (1)  issued in the district's name;
               (2)  signed by the president; and
               (3)  attested by the secretary. (Acts 53rd Leg., R.S.,
  Ch. 370, Sec. 14(c) (part).)
         Sec. 5018.0206.  MATURITY. District bonds must mature not
  later than 40 years after the date of their issuance. (Acts 53rd
  Leg., R.S., Ch. 370, Sec. 14(c) (part).)
         Sec. 5018.0207.  USE OF BOND PROCEEDS. The board may
  appropriate or set aside out of the proceeds from the sale of any
  district bonds:
               (1)  an amount for the payment of interest expected to
  accrue during the period of construction of the improvements or
  facilities; and
               (2)  an amount necessary to pay all expenses incurred
  and to be incurred in the issuance, sale, and delivery of the bonds.
  (Acts 53rd Leg., R.S., Ch. 370, Sec. 14(d).)
         Sec. 5018.0208.  REFUNDING BONDS. (a) The board may issue
  refunding bonds of the district to refund any outstanding district
  bonds and accrued interest on those bonds.
         (b)  Refunding bonds may:
               (1)  as to outstanding bonds payable wholly from taxes,
  be issued to refund more than one series or issue of the outstanding
  bonds; and
               (2)  as to outstanding bonds payable wholly or partly
  from net revenue:
                     (A)  be issued to refund more than one series or
  issue of the outstanding bonds;
                     (B)  combine the pledges for the outstanding bonds
  for the security of the refunding bonds; and
                     (C)  be secured by other or additional revenue.
         (c)  Bonds payable solely from net revenue may not be
  refunded into bonds secured by taxes unless the issuance of the
  bonds is authorized by a majority of the voters voting at an
  election held in the same manner as a bond election.
         (d)  Refunding under this section may not impair the contract
  rights of the holders of any of the outstanding bonds that are not
  to be refunded.
         (e)  Refunding bonds must:
               (1)  be authorized by a board resolution or order;
               (2)  be executed and mature as provided by this chapter
  for original bonds; and
               (3)  bear interest at the same or a lower rate than that
  of the bonds refunded unless it is shown mathematically that a
  saving will result in the total amount of interest to be paid.
         (f)  The comptroller shall register the refunding bonds on
  surrender and cancellation of the bonds to be refunded.
         (g)  Instead of issuing bonds to be registered on the
  surrender and cancellation of the bonds to be refunded, the
  district, in the resolution or order authorizing the issuance of
  the refunding bonds, may provide for the sale of the refunding bonds
  and the deposit of the proceeds in the place or places at which the
  bonds to be refunded are payable. In that case, the refunding bonds
  may be issued in an amount sufficient to pay the interest on the
  bonds to be refunded to their option date or maturity date, and the
  comptroller shall register the refunding bonds without the
  surrender and cancellation of the bonds to be refunded. (Acts 53rd Leg., R.S., Ch. 370, Sec. 15 (part).)
 
  CHAPTER 5019. CHAMBERS-LIBERTY COUNTIES NAVIGATION DISTRICT
  Sec. 5019.0001.  DEFINITIONS 
  Sec. 5019.0002.  APPOINTMENT OF DISTRICT COMMISSIONERS 
  Sec. 5019.0003.  TERM OF OFFICE 
  CHAPTER 5019. CHAMBERS-LIBERTY COUNTIES NAVIGATION DISTRICT
         Sec. 5019.0001.  DEFINITIONS. In this chapter:
               (1)  "Commissioner" means a member of the district's
  navigation and canal commission.
               (2)  "District" means the Chambers-Liberty Counties
  Navigation District. (New.)
         Sec. 5019.0002.  APPOINTMENT OF DISTRICT COMMISSIONERS. (a)
  Notwithstanding Section 62.072, Water Code, commissioners are
  appointed as provided by this section.
         (b)  The commissioners court of Chambers County by majority
  vote shall appoint two commissioners. The commissioners court of
  Liberty County by majority vote shall appoint two commissioners.
  The two commissioners courts shall appoint a fifth commissioner at
  a joint meeting of the two commissioners courts called and presided
  over by the county judge of Chambers County.
         (c)  Each of the county judges and county commissioners
  composing the commissioners courts of both counties is entitled to
  one vote in appointing the fifth commissioner. A majority vote of
  those present at the meeting is sufficient to make the appointment.
  (Acts 76th Leg., R.S., Ch. 1145, Secs. 1(a), (b), (c).)
         Sec. 5019.0003.  TERM OF OFFICE. Notwithstanding Section
  62.065, Water Code, commissioners serve staggered four-year terms.
  (Acts 76th Leg., R.S., Ch. 1145, Sec. 1(d).)
         SECTION 1.02.  MUNICIPAL UTILITY DISTRICTS.  Subtitle F,
  Title 6, Special District Local Laws Code, is amended by adding Chapters 8018, 8020, 8021, 8022, 8023, and 8024 to read as follows:
 
  CHAPTER 8018. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 319
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8018.0001.  DEFINITIONS 
  Sec. 8018.0002.  NATURE OF DISTRICT 
  Sec. 8018.0003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8018.0004.  DISTRICT TERRITORY 
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8018.0051.  COMPOSITION OF BOARD 
  Sec. 8018.0052.  BOARD VACANCY 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8018.0101.  MUNICIPAL UTILITY DISTRICT POWERS 
  Sec. 8018.0102.  WATER CONSERVATION PROGRAM 
  CHAPTER 8018. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 319
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8018.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a member of the board.
               (3)  "District" means the Harris County Municipal
  Utility District No. 319. (Acts 69th Leg., R.S., Ch. 787, Secs.
  1(a) (part), 2; New.)
         Sec. 8018.0002.  NATURE OF DISTRICT. The district is a
  conservation and reclamation district in Harris County created
  under Section 59, Article XVI, Texas Constitution. (Acts 69th Leg.,
  R.S., Ch. 787, Sec. 1(a) (part).)
         Sec. 8018.0003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a)
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in 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 creation of the district is essential to accomplish
  the purposes of Section 59, Article XVI, Texas Constitution. (Acts
  69th Leg., R.S., Ch. 787, Secs. 1(b), 5.)
         Sec. 8018.0004.  DISTRICT TERRITORY. (a) The district is
  composed of the territory described by Section 3, Chapter 787, Acts
  of the 69th Legislature, Regular Session, 1985, as that territory
  may have been modified under:
               (1)  Subchapter J, Chapter 49, Water Code;
               (2)  Subchapter H, Chapter 54, Water Code; or
               (3)  other law.
         (b)  The boundaries and field notes of the district form a
  closure. A mistake in the field notes or in copying the field notes
  in the legislative process does not affect:
               (1)  the district's organization, existence, or
  validity;
               (2)  the district's right to issue any type of bond for
  a purpose for which the district is created or to pay the principal
  of and interest on the bonds;
               (3)  the district's right to impose a tax; or
               (4)  the legality or operation of the district or its
  governing body. (Acts 69th Leg., R.S., Ch. 787, Sec. 4; New.)
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8018.0051.  COMPOSITION OF BOARD.  The district is
  governed by a board of five elected directors.  (Acts 69th Leg.,
  R.S., Ch. 787, Secs. 8(a), (b) (part).)
         Sec. 8018.0052.  BOARD VACANCY. (a) Except as provided by
  Subsection (b), a vacancy in the office of director shall be filled
  in the manner provided by Section 49.105, Water Code.
         (b)  The Texas Commission on Environmental Quality shall
  appoint directors to fill the vacancies on the board whenever the
  number of qualified directors is fewer than three. (Acts 69th Leg.,
  R.S., Ch. 787, Sec. 8(e) (part); New.)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8018.0101.  MUNICIPAL UTILITY DISTRICT POWERS. The
  district has the rights, powers, privileges, and functions provided
  by general law, including Chapters 49 and 54, Water Code,
  applicable to a municipal utility district created under Section
  59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch.
  787, Sec. 6(a) (part); New.)
         Sec. 8018.0102.  WATER CONSERVATION PROGRAM. (a) In this
  section, "water conservation program" means the practices,
  techniques, and technologies that will reduce water consumption,
  reduce water loss or waste, improve efficiency in water use, or
  increase water recycling and reuse so that a water supply is
  available for future or alternative uses.
         (b)  The district shall adopt and implement a water
  conservation program consistent with rules and criteria adopted and
  enforceable by the Texas Commission on Environmental Quality for
  similarly situated districts in the region. (Acts 69th Leg., R.S., Ch. 787, Sec. 7.)
 
  CHAPTER 8020. POLK COUNTY FRESH WATER SUPPLY DISTRICT NO. 2
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8020.0001.  DEFINITION 
  Sec. 8020.0002.  NATURE OF DISTRICT 
  Sec. 8020.0003.  DISTRICT TERRITORY 
  Sec. 8020.0004.  DISTRICT NAME CHANGE 
  SUBCHAPTER B. POWERS AND DUTIES
  Sec. 8020.0051.  MUNICIPAL UTILITY DISTRICT POWERS 
  CHAPTER 8020. POLK COUNTY FRESH WATER SUPPLY DISTRICT NO. 2
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8020.0001.  DEFINITION. In this chapter, "district"
  means the Polk County Fresh Water Supply District No. 2. (Acts 75th
  Leg., R.S., Ch. 814, Sec. 1 (part); New.)
         Sec. 8020.0002.  NATURE OF DISTRICT. The district is a
  municipal utility district converted from a fresh water supply
  district by Chapter 814, Acts of the 75th Legislature, Regular
  Session, 1997. (Acts 75th Leg., R.S., Ch. 814, Sec. 1 (part);
  New.)
         Sec. 8020.0003.  DISTRICT TERRITORY. (a) The district's
  boundaries are those confirmed by Section 3, Chapter 814, Acts of
  the 75th Legislature, Regular Session, 1997, as those boundaries
  may have been modified under:
               (1)  Subchapter J, Chapter 49, Water Code;
               (2)  Subchapter H, Chapter 54, Water Code; or
               (3)  other law.
         (b)  The confirmation of boundaries described by Subsection
  (a):
               (1)  does not enlarge or diminish the district as it
  existed on September 1, 1997; and
               (2)  includes the property in the district that was
  being served or taxed on September 1, 1997. (Acts 75th Leg., R.S.,
  Ch. 814, Sec. 3 (part); New.)
         Sec. 8020.0004.  DISTRICT NAME CHANGE. The district's board
  of directors may change the name of the district in an open meeting
  for which proper notice has been given. (Acts 75th Leg., R.S.,
  Ch. 814, Sec. 2.)
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 8020.0051.  MUNICIPAL UTILITY DISTRICT POWERS. (a)
  Except as provided by Subsection (b), the district has the rights,
  powers, privileges, and functions conferred by Chapter 54, Water
  Code.
         (b)  The district may not exercise any authority with regard
  to firefighting or to municipal solid waste disposal. (Acts 75th Leg., R.S., Ch. 814, Sec. 1 (part).)
 
  CHAPTER 8021. LAKEWAY MUNICIPAL UTILITY DISTRICT
  Sec. 8021.0001.  DEFINITIONS 
  Sec. 8021.0002.  EXCLUSION OF LAND 
  Sec. 8021.0003.  NOTICE OF HEARING 
  Sec. 8021.0004.  EXCLUSION WITH BOND REFUNDING 
  Sec. 8021.0005.  APPLICABILITY OF CERTAIN OTHER LAW 
  CHAPTER 8021. LAKEWAY MUNICIPAL UTILITY DISTRICT
         Sec. 8021.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "District" means the Lakeway Municipal Utility
  District, Travis County. (Acts 75th Leg., R.S., Ch. 1272, Sec. 1.)
         Sec. 8021.0002.  EXCLUSION OF LAND. (a) The board may, at
  its discretion, call a hearing to consider excluding land from the
  district or determine not to call a hearing to exclude land from the
  district.
         (b)  If the board holds a hearing under Subsection (a), the
  board may by order exclude land from the district on any of the
  grounds for exclusion provided by Section 49.306, Water Code,
  provided that:
               (1)  the board receives a petition, signed by the
  owners of the land to be excluded and consented to by all
  lienholders, requesting exclusion of the land as described by metes
  and bounds; and
               (2)  the owners of the land pay to the district a
  payment and any other fees or costs required by the district. (Acts
  75th Leg., R.S., Ch. 1272, Sec. 2.)
         Sec. 8021.0003.  NOTICE OF HEARING. (a) Except as provided
  by Section 8021.0004, in addition to the notice required by Section
  49.304, Water Code, the district shall, not later than the 30th day
  before the date of the exclusion hearing under Section
  8021.0002(a):
               (1)  publish notice of the exclusion hearing in a
  nationally recognized financial journal; and
               (2)  mail notice of the exclusion hearing by certified
  mail to the paying agent or registrar of the district's outstanding
  bonds.
         (b)  The notice required by Subsection (a) must advise any
  district bondholder, taxpayer, or other interested party that the
  person may appear at the exclusion hearing in support of or in
  opposition to the petition for exclusion. (Acts 75th Leg., R.S.,
  Ch. 1272, Sec. 3; New.)
         Sec. 8021.0004.  EXCLUSION WITH BOND REFUNDING. (a) Land
  may be excluded as authorized by this chapter in conjunction with a
  refunding of the district's outstanding bonds.
         (b)  If land is excluded in the manner provided by Subsection
  (a), the only notice required is the notice specified by Section
  49.304, Water Code. (Acts 75th Leg., R.S., Ch. 1272, Sec. 4.)
         Sec. 8021.0005.  APPLICABILITY OF CERTAIN OTHER LAW.
  Sections 49.307 and 49.308, Water Code, apply to an exclusion of
  land carried out under this chapter. (Acts 75th Leg., R.S., Ch. 1272, Sec. 5.)
 
  CHAPTER 8022. TANGLEWOOD FOREST LIMITED DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8022.0001.  DEFINITION 
  SUBCHAPTER B. FINANCIAL PROVISIONS
  Sec. 8022.0051.  USE OF GENERAL OPERATING FUNDS 
  CHAPTER 8022. TANGLEWOOD FOREST LIMITED DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8022.0001.  DEFINITION. In this chapter, "district"
  means the Tanglewood Forest Limited District. (Acts 74th Leg.,
  R.S., Ch. 675, Sec. 1.)
  SUBCHAPTER B. FINANCIAL PROVISIONS
         Sec. 8022.0051.  USE OF GENERAL OPERATING FUNDS.
  Notwithstanding Section 54.236, Water Code, the district may use
  general operating funds to install, operate, and maintain street or
  security lighting in an area in the district:
               (1)  that has had water utilities and streets installed
  for not less than eight years; and
               (2)  in which the developer of the area has not
  installed street or security lighting as required as a condition of
  the municipality's granting its consent to the creation of the
  district under Section 54.016, Water Code. (Acts 74th Leg., R.S., Ch. 675, Sec. 2.)
 
  CHAPTER 8023. THE WOODLANDS METRO CENTER MUNICIPAL UTILITY DISTRICT
  Sec. 8023.0001.  DEFINITION 
  Sec. 8023.0002.  EXCLUSION OF TERRITORY 
  Sec. 8023.0003.  ANNEXATION OR ADDITION OF TERRITORY 
  CHAPTER 8023. THE WOODLANDS METRO CENTER MUNICIPAL UTILITY DISTRICT
         Sec. 8023.0001.  DEFINITION. In this chapter, "district"
  means The Woodlands Metro Center Municipal Utility District, of
  Montgomery County, Texas. (Acts 72nd Leg., R.S., Ch. 322, Sec.
  1(2).)
         Sec. 8023.0002.  EXCLUSION OF TERRITORY. (a) The district
  may exclude territory from the district after a bond election has
  been called or bonds have been issued only if:
               (1)  the exclusion of the territory is not expressly
  prohibited by the orders or resolutions calling the bond election
  or authorizing the issuance of the bonds;
               (2)  the district annexes or adds territory into the
  district that is sufficient to avoid an impairment of the security
  for payment of the voted or issued bonds and of any other contract
  obligations that are wholly or partly payable from or secured by ad
  valorem taxes or net revenues of the district; and
               (3)  the exclusion and addition of territory is
  accomplished in conformity with the notice and hearing requirements
  relating to the exclusion and addition of territory prescribed by
  Subchapter J, Chapter 49, Water Code.
         (b)  The district must finally annex or include the
  additional territory prescribed by Subsection (a)(2)
  simultaneously with the exclusion of the territory or not earlier
  than the 30th day before the date the territory is excluded.
         (c)  Before the effective date of the exclusion, the district
  must receive from the territory proposed to be excluded payments of
  all rates, fees, and charges for water, sewer, or other district
  services provided to the territory, and of all ad valorem taxes,
  standby fees, and associated penalties and interest relating to the
  territory, that are due or overdue.
         (d)  If ad valorem taxes or standby fees have not been
  established for the year in which the territory is to be excluded,
  the territory shall pay an amount determined by the district to be
  equal to the estimated ad valorem taxes or standby fees the district
  will establish for the year. (Acts 72nd Leg., R.S., Ch. 322, Sec.
  2.)
         Sec. 8023.0003.  ANNEXATION OR ADDITION OF TERRITORY. (a)
  Territory annexed or added to the district is sufficient to avoid an
  impairment of the security for payment of an obligation of the
  district if:
               (1)  the taxable value of the additional territory is
  equal to or greater than the taxable value of the excluded
  territory, as determined by the most recent certified county
  property tax rolls; and
               (2)  the estimated cost to provide district facilities
  and services to the additional territory is equal to or less than
  the estimated cost to provide district facilities and services to
  the excluded territory, as determined by the district's engineer.
         (b)  In addition to the requirements of Subsection (a), if
  the district's outstanding bonds or contract obligations are wholly
  or partly payable from or secured by the net revenues from the
  ownership or operation of the district's waterworks or sewer
  systems, the projected net revenues to be derived from the
  additional territory during the period ending on the anniversary of
  the date on which the territory is added must be equal to or greater
  than the projected net revenues that would be derived during that
  period from the excluded territory, as determined by the district's engineer. (Acts 72nd Leg., R.S., Ch. 322, Sec. 3.)
 
  CHAPTER 8024. BAYBROOK MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8024.0001.  DEFINITIONS 
  Sec. 8024.0002.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8024.0003.  CONFLICTS OF LAW 
  SUBCHAPTER B. POWERS AND DUTIES
  Sec. 8024.0051.  ROAD UTILITY DISTRICT POWERS AND
                    DUTIES 
  Sec. 8024.0052.  ROAD PROJECTS 
  Sec. 8024.0053.  RAPID TRANSIT AUTHORITY POWERS 
  SUBCHAPTER C. FINANCIAL PROVISIONS
  Sec. 8024.0101.  ELECTIONS REGARDING TAXES OR BONDS 
  Sec. 8024.0102.  MAINTENANCE TAX 
  CHAPTER 8024. BAYBROOK MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8024.0001.  DEFINITIONS. In this chapter:
               (1)  "City" means the City of Houston, Texas.
               (2)  "District" means the Baybrook Municipal Utility
  District No. 1. (Acts 77th Leg., R.S., Ch. 1386, Secs. 2(2), (3).)
         Sec. 8024.0002.  FINDINGS OF PUBLIC USE AND BENEFIT. (a)
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 52, Article III,
  Texas Constitution. (Acts 77th Leg., R.S., Ch. 1386, Sec. 3.)
         Sec. 8024.0003.  CONFLICTS OF LAW. (a) This section applies
  only to laws enacted on or before June 16, 2001.
         (b)  Chapter 49 or 54, Water Code, controls over a
  conflicting or inconsistent provision in general law relating to
  road utility districts. (Acts 77th Leg., R.S., Ch. 1386, Sec. 5
  (part).)
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 8024.0051.  ROAD UTILITY DISTRICT POWERS AND DUTIES.
  (a) The district has road utility district authority under Section
  52(b)(3), Article III, Texas Constitution, and Chapter 441,
  Transportation Code, including:
               (1)  the authority to repair and maintain streets and
  roadways in the district; and
               (2)  the ability to make contracts in the same manner as
  a road utility district under Subchapter E, Chapter 441,
  Transportation Code.
         (b)  The district has all of the rights, powers, privileges,
  authority, duties, and functions conferred by the general laws
  applicable to a road utility district created under Section 52,
  Article III, Texas Constitution, to the extent those provisions can
  be made applicable.
         (c)  The district is not subject to the requirements of
  Subchapter B, Chapter 441, Transportation Code. (Acts 77th Leg.,
  R.S., Ch. 1386, Secs. 1 (part), 4, 5 (part), 9.)
         Sec. 8024.0052.  ROAD PROJECTS. (a) To the extent
  authorized by Section 52, Article III, Texas Constitution, the
  district may construct, acquire, improve, maintain, and operate
  macadamized, graveled, or paved roads and turnpikes or improvements
  in aid of those roads or turnpikes in the district.
         (b)  The improvements under Subsection (a) may include
  drainage or landscaping improvements and lights, signs, or signals
  that are incidental to the roads and turnpikes and the
  construction, maintenance, or operation of the roads and turnpikes.
         (c)  A project authorized by this section must meet all
  applicable construction standards, zoning and subdivision
  requirements, and regulatory ordinances of the city.
         (d)  On completion of a project authorized by this chapter,
  the district, with the consent of the city, may convey the project
  to the city if the conveyance is free of all district debt. If the
  city becomes the owner of a project, the city is responsible for all
  future maintenance and the district has no further responsibility
  for the project or its maintenance. (Acts 77th Leg., R.S., Ch.
  1386, Sec. 6.)
         Sec. 8024.0053.  RAPID TRANSIT AUTHORITY POWERS. (a) The
  district has the powers of a metropolitan rapid transit authority
  under Section 451.065, Transportation Code.
         (b)  The municipal consent and contract requirements in
  Section 451.065(d), Transportation Code, do not apply to the
  district. (Acts 77th Leg., R.S., Ch. 1386, Sec. 1 (part).)
  SUBCHAPTER C. FINANCIAL PROVISIONS
         Sec. 8024.0101.  ELECTIONS REGARDING TAXES OR BONDS. (a)
  The district may issue bonds, notes, and other obligations secured
  by revenues or contract payments from any lawful source other than
  ad valorem taxes without an election.
         (b)  The district may issue bonds, notes, and other
  obligations secured wholly or partly by ad valorem taxes only if the
  issuance is approved by a vote of a two-thirds majority of the
  district voters voting at an election held for that purpose. (Acts
  77th Leg., R.S., Ch. 1386, Sec. 7.)
         Sec. 8024.0102.  MAINTENANCE TAX. The district may impose a
  maintenance tax at a rate not to exceed 25 cents on each $100 of
  assessed valuation of property in the district to be used for any
  authorized purpose of the district if the authority to impose the
  tax is approved by a majority of district voters voting at an
  election held for that purpose. (Acts 77th Leg., R.S., Ch. 1386,
  Sec. 8.)
         SECTION 1.03.  RIVER AUTHORITIES.  Subtitle G, Title 6,
  Special District Local Laws Code, is amended by adding Chapters 8508 and 8509 to read as follows:
 
  CHAPTER 8508. SULPHUR RIVER BASIN AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8508.0001.  DEFINITIONS 
  Sec. 8508.0002.  NATURE OF AUTHORITY 
  Sec. 8508.0003.  PURPOSE OF CHAPTER 
  Sec. 8508.0004.  FINDING OF BENEFIT 
  Sec. 8508.0005.  REVIEW SCHEDULE UNDER SUNSET ACT 
  Sec. 8508.0006.  TERRITORY 
  Sec. 8508.0007.  LIBERAL CONSTRUCTION OF CHAPTER 
  SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
  Sec. 8508.0051.  MEMBERSHIP OF BOARD 
  Sec. 8508.0052.  TERMS 
  Sec. 8508.0053.  REMOVAL 
  Sec. 8508.0054.  VACANCY 
  Sec. 8508.0055.  BOND REQUIREMENT FOR DIRECTORS 
  Sec. 8508.0056.  COMPENSATION OF DIRECTORS 
  Sec. 8508.0057.  OFFICERS 
  Sec. 8508.0058.  DIRECTOR TRAINING PROGRAM 
  Sec. 8508.0059.  INTEREST IN CONTRACT 
  Sec. 8508.0060.  COMMITTEES 
  Sec. 8508.0061.  EXECUTIVE DIRECTOR 
  Sec. 8508.0062.  SEPARATION OF POLICYMAKING AND
                    MANAGEMENT FUNCTIONS 
  Sec. 8508.0063.  DIRECTORS' AND EMPLOYEES' FIDELITY
                    BONDS 
  Sec. 8508.0064.  AUTHORITY'S OFFICE 
  Sec. 8508.0065.  NEGOTIATED RULEMAKING AND ALTERNATIVE
                    DISPUTE RESOLUTION 
  Sec. 8508.0066.  COMPLAINTS 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8508.0101.  GENERAL POWERS AND DUTIES 
  Sec. 8508.0102.  EFFECT OF POWERS OF AUTHORITY ON
                    POWERS OF OTHER DISTRICTS;
                    COORDINATION AND JOINT UNDERTAKINGS
                    AMONG DISTRICTS 
  Sec. 8508.0103.  GENERAL POWERS RELATING TO WORKS AND
                    WATER 
  Sec. 8508.0104.  CONTROL AND USE OF WATERS 
  Sec. 8508.0105.  USE OF BEDS AND BANKS OF SULPHUR RIVER
                    AND ITS TRIBUTARIES 
  Sec. 8508.0106.  WATER CONSERVATION PROGRAM 
  Sec. 8508.0107.  GROUNDWATER 
  Sec. 8508.0108.  APPLICABILITY OF CERTAIN ENVIRONMENTAL
                    LAWS 
  Sec. 8508.0109.  PERMITS AND LICENSES 
  Sec. 8508.0110.  CONSULTATION WITH COUNTY JUDGE FOR
                    CERTAIN PROPOSED PROJECTS 
  Sec. 8508.0111.  SERVICE CONTRACTS AND CHARGES 
  Sec. 8508.0112.  ACQUISITION, MAINTENANCE, AND
                    OPERATION OF PROPERTY 
  Sec. 8508.0113.  ACQUISITION, CONSTRUCTION,
                    MAINTENANCE, AND OPERATION OF
                    FACILITIES 
  Sec. 8508.0114.  EMINENT DOMAIN 
  Sec. 8508.0115.  COST OF RELOCATING OR ALTERING
                    PROPERTY 
  Sec. 8508.0116.  SALE, LEASE, EXCHANGE, OR OTHER
                    DISPOSITION OF PROPERTY 
  Sec. 8508.0117.  GENERAL CONTRACT POWERS 
  Sec. 8508.0118.  POWER OF PERSONS TO CONTRACT WITH
                    AUTHORITY 
  Sec. 8508.0119.  AWARD OF CERTAIN CONTRACTS 
  Sec. 8508.0120.  CONSTRUCTION CONTRACTS: PAYMENT 
  Sec. 8508.0121.  CONFLICT OF INTEREST IN CONTRACT 
  Sec. 8508.0122.  SURVEYS AND ENGINEERING INVESTIGATIONS 
  Sec. 8508.0123.  PLANS 
  Sec. 8508.0124.  ACCESS TO AUTHORITY PROPERTY 
  Sec. 8508.0125.  AUTHORITY TO EXERCISE POWERS OF
                    POLITICAL SUBDIVISIONS UNDER WATER
                    CODE 
  Sec. 8508.0126.  LIMITATIONS ON POWERS AND DUTIES OF
                    AUTHORITY; COMMISSION APPROVAL OF
                    CERTAIN PLANS 
  Sec. 8508.0127.  SUITS 
  SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
  PROVISIONS
  Sec. 8508.0151.  ADOPTION AND ENFORCEMENT OF RULES 
  Sec. 8508.0152.  CIVIL PENALTY; INJUNCTIVE RELIEF 
  Sec. 8508.0153.  COURT REVIEW 
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
  Sec. 8508.0201.  DISBURSEMENT OF MONEY 
  Sec. 8508.0202.  ACCOUNTS, CONTRACTS, AND OTHER
                    RECORDS; PUBLIC INSPECTION 
  Sec. 8508.0203.  FEES AND CHARGES 
  Sec. 8508.0204.  TRUST MONEY 
  Sec. 8508.0205.  TAXES AND TAX DEBT PROHIBITED 
  Sec. 8508.0206.  DEPOSITORY 
  Sec. 8508.0207.  INVESTMENT OF AUTHORITY MONEY;
                    APPLICATION OF INCOME FROM
                    INVESTMENTS 
  Sec. 8508.0208.  FISCAL YEAR 
  Sec. 8508.0209.  AUDIT 
  SUBCHAPTER F. OBLIGATIONS RELATING TO BORROWED MONEY OR GRANTS
  Sec. 8508.0251.  LOANS AND GRANTS 
  Sec. 8508.0252.  POWER TO APPLY FOR MONEY FOR
                    ENGINEERING SURVEYS, DATA
                    COMPILATION AND COLLECTION, AND
                    OTHER PURPOSES 
  Sec. 8508.0253.  POWER TO ISSUE BONDS OR OTHER
                    OBLIGATIONS 
  Sec. 8508.0254.  REFUNDING BONDS 
  Sec. 8508.0255.  FORM OF OBLIGATIONS 
  Sec. 8508.0256.  MATURITY 
  Sec. 8508.0257.  TRUST INDENTURE 
  Sec. 8508.0258.  ADDITIONAL OBLIGATIONS 
  Sec. 8508.0259.  ADDITIONAL PROVISIONS IN RESOLUTION
                    AUTHORIZING OBLIGATIONS OR TRUST
                    INDENTURE 
  CHAPTER 8508. SULPHUR RIVER BASIN AUTHORITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8508.0001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means the Sulphur River Basin
  Authority.
               (2)  "Basin" means the watersheds of the Sulphur River
  inside the authority's territory as defined by Section 8508.0006.
               (3)  "Board" means the authority's board of directors.
               (4)  "Commission" means the Texas Commission on
  Environmental Quality.
               (5)  "Development board" means the Texas Water
  Development Board.
               (6)  "Director" means a board member.
               (7)  "Public agency" means any government or
  governmental subdivision or agency.
               (8)  "State" means the State of Texas or any of its
  agencies, departments, boards, political subdivisions, or other
  entities.
               (9)  "Waste" means sewage, industrial waste, municipal
  waste, recreational waste, agricultural waste, or waste heat.
  (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 2(1), (2), (3), (4), (6),
  (8), (9), (11); New.)
         Sec. 8508.0002.  NATURE OF AUTHORITY. The authority is a
  conservation and reclamation district created under Section 59,
  Article XVI, Texas Constitution. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 1(a).)
         Sec. 8508.0003.  PURPOSE OF CHAPTER. The purpose of this
  chapter is to authorize the authority to provide for the
  conservation and development of this state's natural resources
  inside the basin, including:
               (1)  the control, storage, preservation, and
  distribution of this state's water for domestic and municipal uses,
  industrial uses, irrigation, mining and recovery of minerals, stock
  raising, underground water recharge, electric power generation,
  navigation, and other beneficial uses and purposes;
               (2)  the reclamation and irrigation of land needing
  irrigation;
               (3)  the reclamation and drainage of overflowed land
  and other land needing drainage;
               (4)  the maintenance and enhancement of the quality of
  the water;
               (5)  the conservation and development of the water;
               (6)  the navigation of inland water; and
               (7)  the provision of systems, facilities, and
  procedures for the collection, transportation, handling,
  treatment, and disposal of waste. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 4.)
         Sec. 8508.0004.  FINDING OF BENEFIT. The legislature finds
  that all land included in the authority will benefit from the
  improvements to be acquired and constructed by the authority.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 3(b).)
         Sec. 8508.0005.  REVIEW SCHEDULE UNDER SUNSET ACT. A review
  of the authority under Section 325.025, Government Code, shall be
  conducted as if the authority were a state agency scheduled to be
  abolished September 1, 2029, and every 12th year after that year.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 1A(a) (part).)
         Sec. 8508.0006.  TERRITORY. (a) Unless modified under
  Subchapter J, Chapter 49, Water Code, or other law, the authority's
  territory is composed of the territory in each county in Texas,
  other than Fannin County, that is located wholly or partly in the
  watershed of the Sulphur River and its tributaries with confluences
  with the Sulphur River upstream from the eastern boundary of Texas,
  as those watersheds and tributaries are defined by maps on file with
  the development board.
         (b)  The boundaries of the authority form a closure. A
  mistake in the description of the boundaries in the legislative
  process or another mistake does not affect:
               (1)  the authority's organization, existence, or
  validity;
               (2)  the authority's right to issue any type of bond for
  a purpose for which the authority is created or to pay the principal
  of or interest on the bond; or
               (3)  the legality or operation of the authority or its
  governing body. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 3(a), 52;
  New.)
         Sec. 8508.0007.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed to achieve its purposes.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 5 (part).)
  SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
         Sec. 8508.0051.  MEMBERSHIP OF BOARD. (a) The board
  consists of seven directors appointed by the governor with the
  advice and consent of the senate.
         (b)  The governor shall appoint one director to represent the
  authority at large.
         (c)  The governor shall appoint two directors from each of
  the following regions:
               (1)  Region 1: Bowie and Red River Counties;
               (2)  Region 2: Cass, Franklin, Hunt, Morris, and Titus
  Counties; and
               (3)  Region 3: Delta, Hopkins, and Lamar Counties.
         (d)  Each director must be a qualified voter.
         (e)  A director appointed under Subsection (c) must be a
  resident of a county in the region for which the director is
  appointed. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 6(a) (part),
  (b).)
         Sec. 8508.0052.  TERMS. Directors serve for staggered terms
  of six years with two or three directors' terms expiring on February
  1 of each odd-numbered year. (Acts 69th Leg., 1st C.S., Ch. 3, Sec.
  6(c); Acts 85th Leg., R.S., Ch. 276, Sec. 15(c).)
         Sec. 8508.0053.  REMOVAL. (a) The governor may remove a
  director from office for:
               (1)  inefficiency;
               (2)  neglect of duty;
               (3)  misconduct in office; or
               (4)  absence from three consecutive regular board
  meetings.
         (b)  Before a director is removed from office, the board
  shall call and hold a hearing on the charges against the director,
  and the director is entitled to appear at the hearing and present
  evidence to show why the director should not be removed from office.
         (c)  Not later than the 30th day before the date of the
  hearing, the board shall give the accused director notice of:
               (1)  the charges against the director; and
               (2)  the time and place for the hearing.
         (d)  An affirmative vote of not fewer than four of the
  directors is required to approve a recommendation for removal.
         (e)  A recommendation for removal shall be forwarded to the
  governor for the governor's consideration and action as provided by
  this section. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 6(f).)
         Sec. 8508.0054.  VACANCY. A vacancy on the board shall be
  filled in the manner provided by Section 8508.0051 for making the
  original appointment. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 6(e).)
         Sec. 8508.0055.  BOND REQUIREMENT FOR DIRECTORS. As a
  qualification for office, a director must execute a bond in an
  amount determined by the board conditioned on the faithful
  performance of the director's duties. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Sec. 6(d).)
         Sec. 8508.0056.  COMPENSATION OF DIRECTORS. (a) A director
  is entitled to receive $25 a day and reimbursement for actual and
  necessary expenses incurred:
               (1)  for each day the director spends attending
  meetings of the board; and
               (2)  for each day the director spends attending to the
  business of the authority that is authorized by the board.
         (b)  A director is not entitled to receive a per diem
  allowance for more than 50 days in a calendar year.
         (c)  In all areas of conflict with Subsection (a) or (b) of
  this section, Section 49.060, Water Code, takes precedence.
         (d)  A director's compensation may be increased as
  authorized by Section 49.060, Water Code, by resolution adopted by
  the board in accordance with Subsection (e) of that section on or
  after September 1, 1995. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 8;
  New.)
         Sec. 8508.0057.  OFFICERS. (a) The governor shall
  designate a director as the presiding officer of the board to serve
  in that capacity at the pleasure of the governor.
         (b)  The board shall elect one or more vice presidents, a
  secretary, a treasurer, and other officers as the directors
  consider necessary.
         (c)  The presiding officer and each vice president must be a
  director, but other officers are not required to be directors.
         (d)  The offices of the secretary and treasurer may be
  combined, and the offices of assistant secretary and assistant
  treasurer may be combined. (Acts 69th Leg., 1st C.S., Ch. 3, Secs.
  6(i), (j).)
         Sec. 8508.0058.  DIRECTOR TRAINING PROGRAM. (a) A person
  who is appointed to and qualifies for office as a director may not
  vote, deliberate, or be counted as a director in attendance at a
  board meeting until the person completes a training program that
  complies with this section.
         (b)  The training program must provide the person with
  information regarding:
               (1)  the law governing the authority's operations;
               (2)  the authority's programs, functions, rules, and
  budget;
               (3)  the scope of and limitations on the authority's
  rulemaking authority;
               (4)  the results of the authority's most recent formal
  audit;
               (5)  the requirements of:
                     (A)  laws relating to open meetings, public
  information, administrative procedure, and disclosing conflicts of
  interest; and
                     (B)  other laws applicable to members of the
  governing body of a river authority in performing their duties; and
               (6)  any applicable ethics policies adopted by the
  board or the Texas Ethics Commission.
         (c)  A person appointed to the board is entitled to
  reimbursement for the travel expenses incurred in attending the
  training program regardless of whether the attendance at the
  program occurs before or after the person qualifies for office.
         (d)  The board shall create a training manual that includes
  the information required by Subsection (b). The board shall
  distribute a copy of the training manual annually to each director.
  On receipt of the training manual, each director shall sign a
  statement acknowledging receipt of the training manual. (Acts 69th
  Leg., 1st C.S., Ch. 3, Sec. 6A.)
         Sec. 8508.0059.  INTEREST IN CONTRACT. (a) A director who
  has a financial interest in an authority contract for the purchase,
  sale, lease, rental, or supply of property, including supplies,
  materials, and equipment, or for the construction of facilities,
  shall disclose that fact to the other directors and may not vote on
  or participate in discussions during board meetings on the
  acceptance of the contract.
         (b)  A director's financial interest does not affect the
  validity of a contract if disclosure is made and the director with
  the financial interest does not vote on the question of entering
  into the contract. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 7.)
         Sec. 8508.0060.  COMMITTEES. (a) The board may appoint or
  establish committees from the board's directors as necessary or
  desirable to assist in conducting the authority's business.
         (b)  Subject to the applicable rules of law on delegation of
  powers, the board may assign or delegate or provide for the
  assignment or delegation of any powers, duties, and functions to
  its committees as the board may provide by rule or resolution.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 9.)
         Sec. 8508.0061.  EXECUTIVE DIRECTOR. (a) The board may
  employ an executive director and set the executive director's
  salary and other compensation by majority vote of the qualified
  directors.
         (b)  The executive director is the chief executive officer of
  the authority.
         (c)  Under policies established by the board, the executive
  director is responsible to the board for:
               (1)  administering the board's directives;
               (2)  keeping the authority's records, including minutes
  of the meetings of the board and the executive committee;
               (3)  coordinating with state, federal, and local
  agencies;
               (4)  developing plans and programs for the approval of
  the board or the executive committee;
               (5)  hiring, supervising, training, and discharging
  the authority's employees, as authorized by the board or the
  executive committee;
               (6)  contracting for or retaining technical,
  scientific, legal, fiscal, and other professional services, as
  authorized by the board; and
               (7)  performing any other duties assigned by the board.
         (d)  The board may discharge the executive director on a
  majority vote of the qualified directors. (Acts 69th Leg., 1st
  C.S., Ch. 3, Sec. 10.)
         Sec. 8508.0062.  SEPARATION OF POLICYMAKING AND MANAGEMENT
  FUNCTIONS. The board shall develop and implement policies that
  clearly separate the policymaking responsibilities of the board and
  the management responsibilities of the executive director and staff
  of the authority. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 10A.)
         Sec. 8508.0063.  DIRECTORS' AND EMPLOYEES' FIDELITY BONDS.
  (a) The executive director, the treasurer, and any other officer,
  agent, or employee of the authority who has responsibilities that
  involve the collection, custody, or payment of authority money
  shall execute a fidelity bond.
         (b)  The board must approve the form, amount, and surety of
  the bond.
         (c)  The authority shall pay the premiums on the bonds
  required under this chapter. (Acts 69th Leg., 1st C.S., Ch. 3, Sec.
  11.)
         Sec. 8508.0064.  AUTHORITY'S OFFICE. The authority shall
  maintain its principal office inside its boundaries. (Acts 69th
  Leg., 1st C.S., Ch. 3, Sec. 12.)
         Sec. 8508.0065.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION. (a) The board shall develop a policy to
  encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of authority rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the authority's
  jurisdiction.
         (b)  The authority's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The authority shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 6B.)
         Sec. 8508.0066.  COMPLAINTS. (a) The authority shall
  maintain a system to promptly and efficiently act on complaints
  filed with the authority. The authority shall maintain information
  about parties to the complaint, the subject matter of the
  complaint, a summary of the results of the review or investigation
  of the complaint, and its disposition.
         (b)  The authority shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The authority shall periodically notify the parties to
  the complaint of the status of the complaint until final
  disposition. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 13A.)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8508.0101.  GENERAL POWERS AND DUTIES. (a) The
  authority shall:
               (1)  administer this chapter; and
               (2)  use its facilities and powers to accomplish the
  purposes of this chapter.
         (b)  The authority may:
               (1)  exercise the powers, rights, and privileges
  necessary or convenient for accomplishing the purposes of this
  chapter; and
               (2)  perform any act necessary or convenient to the
  exercise of the powers, rights, privileges, or functions conferred
  by this chapter or other laws.
         (c)  The board may provide for any expenditures it considers
  essential or useful in the maintenance, operation, and
  administration of the authority. (Acts 69th Leg., 1st C.S., Ch. 3,
  Secs. 16(a), (b), 38.)
         Sec. 8508.0102.  EFFECT OF POWERS OF AUTHORITY ON POWERS OF
  OTHER DISTRICTS; COORDINATION AND JOINT UNDERTAKINGS AMONG
  DISTRICTS. (a) The powers granted to the authority by this chapter
  are not intended to restrict the powers of any conservation and
  reclamation district created under Section 59, Article XVI, Texas
  Constitution, inside the basin or area of the authority. It is the
  legislature's intent that the authority and those districts
  exercise their respective powers in a cooperative manner.
         (b)  A district created under Section 59, Article XVI, or
  Sections 52(b)(1) and (2), Article III, Texas Constitution, on or
  before August 29, 1985, may:
               (1)  coordinate its plans with the authority; and
               (2)  enter into joint undertakings with the authority
  for the purposes for which the entities are created.
         (c)  The acts taken under Subsection (b) must be approved by
  a majority of the boards of directors of the district and authority.
  (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 16(c) (part), (d).)
         Sec. 8508.0103.  GENERAL POWERS RELATING TO WORKS AND WATER.
  (a) The authority may exercise all the rights and powers of an
  independent agency and a body politic and corporate to construct,
  maintain, and operate, inside this state and in the watershed of the
  Sulphur River and its tributaries inside or outside the boundaries
  of the authority, any work considered essential:
               (1)  to the authority's operation; and
               (2)  for its administration in controlling, storing,
  preserving, and distributing the water, including storm water and
  floodwater, of the Sulphur River and its tributary streams.
         (b)  The authority may exercise the power of control and
  regulation over the water of the Sulphur River and its tributaries
  as this state may exercise, subject to the constitution and laws of
  this state. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 1(d).)
         Sec. 8508.0104.  CONTROL AND USE OF WATERS. (a) The
  authority may exercise power over the storm water and floodwater of
  the basin.
         (b)  The authority may exercise the powers of control and use
  of the state's water in the following manner and for the following
  purposes:
               (1)  to provide for the control and coordination of
  water use in the basin as a unit;
               (2)  to provide by adequate organization and
  administration for the preservation of the rights of the people of
  the different sections of the basin in the beneficial use of water;
               (3)  to provide for conserving storm water, floodwater,
  and the unappropriated flow of the basin, including the storage,
  control, transportation, treatment, and distribution of that
  water, and the prevention of the escape of water without the maximum
  of public service;
               (4)  to provide for the prevention of the devastation
  of land from recurrent overflows;
               (5)  to provide for the protection of life and property
  in the basin from uncontrolled floodwater;
               (6)  to provide for the conservation of water essential
  for domestic and other water uses of the people of the basin,
  including necessary water supplies for municipalities and
  industrial districts;
               (7)  to provide for the irrigation of land in the basin
  where irrigation is required for agricultural purposes or is
  considered helpful to more profitable agricultural production;
               (8)  to provide for the equitable distribution of storm
  water, floodwater, and unappropriated flow water to meet the
  regional potential requirements for all uses;
               (9)  to provide for the encouragement and development
  of drainage systems and provisions for the drainage of land in the
  valleys of the basin needing drainage for profitable agricultural
  and livestock production and industrial activities, and other
  drainage of land for the most advantageous use;
               (10)  to provide for the conservation of soil against
  destructive erosion to prevent the increased flood menace incident
  to erosion;
               (11)  to control and make available for use storm
  water, floodwater, and unappropriated flow water as authorized by
  the commission in the development of commercial and industrial
  enterprises in all sections of the watershed area of the authority;
               (12)  to provide for each purpose and use for which
  storm water, floodwater, and unappropriated flow water when
  controlled and conserved may be used in the performance of a useful
  service as contemplated and authorized by the provisions of the
  constitution and laws of this state;
               (13)  to control, store, and preserve the water of the
  basin inside the authority for any useful purpose;
               (14)  to use, distribute, and sell water for any
  beneficial purpose inside and outside the authority; and
               (15)  to acquire water and water rights inside and
  outside the authority.
         (c)  The plans and works provided by the authority or under
  the power of the authority should give primary consideration to the
  necessary and potential needs for water by or in the various areas
  in the watershed of the basin. (Acts 69th Leg., 1st C.S., Ch. 3,
  Secs. 17(a), (b), (c).)
         Sec. 8508.0105.  USE OF BEDS AND BANKS OF SULPHUR RIVER AND
  ITS TRIBUTARIES. Subject to the approval of the commission, the
  authority may use the beds and banks of the Sulphur River and its
  tributary streams for any purpose necessary to accomplish the
  authority's plans for storing, controlling, conserving,
  transporting, and distributing storm water, floodwater, and
  appropriated flow waters for useful purposes. (Acts 69th Leg., 1st
  C.S., Ch. 3, Sec. 36.)
         Sec. 8508.0106.  WATER CONSERVATION PROGRAM. (a) In this
  section, "program of water conservation" means the use of
  practices, techniques, and technologies that will reduce water
  consumption, reduce water loss or waste, improve efficiency in
  water use, or increase water recycling and reuse so that a water
  supply is available for future uses.
         (b)  The authority shall adopt and implement a program of
  water conservation consistent with rules and criteria adopted and
  enforceable by the commission and development board for similarly
  situated authorities. (Acts 69th Leg., 1st C.S., Ch. 3, Sec.
  17(d).)
         Sec. 8508.0107.  GROUNDWATER. (a) The authority may
  conduct surveys and studies of the groundwater supplies in the
  authority to:
               (1)  determine the location and quantity of available
  groundwater; and
               (2)  develop and ascertain other information that in
  the judgment of the board may be necessary to fully develop water
  uses from the groundwater in the authority.
         (b)  With the approval and under the supervision of the
  commission, the authority may appropriate storm water and
  floodwater to recharge underground freshwater-bearing sand and
  aquifers in the basin. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 19.)
         Sec. 8508.0108.  APPLICABILITY OF CERTAIN ENVIRONMENTAL
  LAWS. The authority is a river authority for the purposes and
  definitions of Chapter 30, Water Code, and Chapter 383, Health and
  Safety Code, as they apply to the authority. (Acts 69th Leg., 1st
  C.S., Ch. 3, Sec. 20 (part).)
         Sec. 8508.0109.  PERMITS AND LICENSES. (a) The authority
  must apply for any permit, license, or other grant of authority
  required from the commission.
         (b)  The authority may apply for any permit, license, or
  financial assistance it may need from any federal, state, or local
  governmental agency. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 23(a),
  (b).)
         Sec. 8508.0110.  CONSULTATION WITH COUNTY JUDGE FOR CERTAIN
  PROPOSED PROJECTS. Before voting on a proposed project for which
  the board will seek a permit, the board shall obtain advice on the
  project from the county judge of each county in which the project is
  proposed to be located. (Acts 69th Leg., 1st C.S., Ch. 3, Sec.
  23(c).)
         Sec. 8508.0111.  SERVICE CONTRACTS AND CHARGES. (a) The
  authority may enter into service contracts and may adopt
  resolutions and orders establishing rates and providing for the
  collection of fees and charges for:
               (1)  the sale or use of water;
               (2)  the services of water transmission, treatment, and
  storage facilities;
               (3)  liquid waste collection, treatment, and disposal
  services and facilities;
               (4)  the sale of power and electric energy; and
               (5)  any other services or facilities sold, furnished,
  or supplied by the authority.
         (b)  The fees and charges must be sufficient to produce
  revenues adequate to:
               (1)  pay expenses necessary for the operation and
  maintenance of the authority's property and facilities;
               (2)  pay the principal of and interest on any bonds or
  other obligations issued by the authority when due and payable;
               (3)  fulfill any reserve or other fund obligations of
  the authority in connection with the bonds or other obligations;
  and
               (4)  pay any other expenses the board may consider
  necessary and proper for the authority's operations. (Acts 69th
  Leg., 1st C.S., Ch. 3, Sec. 24.)
         Sec. 8508.0112.  ACQUISITION, MAINTENANCE, AND OPERATION OF
  PROPERTY. The authority may purchase, lease, acquire by gift,
  maintain, use, and operate property of any kind inside or outside
  the authority that is appropriate for the exercise of its powers or
  the accomplishment of its purposes. (Acts 69th Leg., 1st C.S., Ch.
  3, Sec. 26(a).)
         Sec. 8508.0113.  ACQUISITION, CONSTRUCTION, MAINTENANCE,
  AND OPERATION OF FACILITIES. The authority may acquire, construct,
  extend, improve, maintain, reconstruct, use, and operate
  facilities inside or outside the authority that are necessary or
  convenient for the exercise of its powers, rights, duties, and
  functions or the accomplishment of its purposes. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 27.)
         Sec. 8508.0114.  EMINENT DOMAIN. (a) The authority may
  exercise the power of eminent domain to acquire land inside or
  outside the authority to carry out a power, right, privilege, or
  function authorized by this chapter if the board, after notice and
  hearing, determines that the action is necessary.
         (b)  The authority must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code, except that the
  authority is not required to:
               (1)  give bond for appeal or bond for costs in a
  condemnation suit or other suit to which it is a party; or
               (2)  deposit double the amount of any award in any suit.
         (c)  The authority's authority under this section to
  exercise the power of eminent domain expired on September 1, 2013,
  unless the authority submitted a letter to the comptroller in
  accordance with Section 2206.101(b), Government Code, not later
  than December 31, 2012. (Acts 69th Leg., 1st C.S., Ch. 3, Secs.
  25(a), (b); New.)
         Sec. 8508.0115.  COST OF RELOCATING OR ALTERING PROPERTY.
  (a) In this section, "sole expense" means the actual cost of
  relocating, raising, lowering, rerouting, changing the grade of, or
  altering the construction of a facility described by Subsection (b)
  to provide comparable replacement without enhancement of the
  facility, after deducting from that cost the net salvage value
  derived from the old facility.
         (b)  If the authority's exercise of the power of eminent
  domain makes necessary relocating, raising, lowering, rerouting,
  changing the grade of, or altering the construction of a highway,
  railroad, electric transmission or distribution line, telephone or
  telegraph property or facility, or pipeline, the necessary action
  shall be accomplished at the sole expense of the authority. (Acts
  69th Leg., 1st C.S., Ch. 3, Sec. 25(c).)
         Sec. 8508.0116.  SALE, LEASE, EXCHANGE, OR OTHER DISPOSITION
  OF PROPERTY. The authority may:
               (1)  sell any property or interest in property owned by
  the authority by installments or otherwise, including a sale in any
  manner prescribed or authorized by:
                     (A)  Section 552.014, Local Government Code;
                     (B)  Chapter 30, Water Code; or
                     (C)  Chapter 383, Health and Safety Code; or
               (2)  lease, exchange, or otherwise dispose of any
  property or interest in property. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 26(b).)
         Sec. 8508.0117.  GENERAL CONTRACT POWERS. (a) The
  authority may enter into a contract or execute an instrument that is
  necessary or convenient for the exercise of its powers, rights,
  duties, and functions or the accomplishment of its purposes.
         (b)  Notwithstanding any other law, the authority may:
               (1)  undertake and carry out an activity that is
  related to or necessary in carrying out or performing a power or
  function of the authority;
               (2)  enter into a contract, loan agreement, lease, or
  installment sales agreement;
               (3)  acquire, purchase, construct, own, operate,
  maintain, repair, improve, or extend, or loan, lease, sell, or
  otherwise dispose of, including by such methods as a loan payment,
  rental, sale, or installment sale, as the parties may agree, any
  facility, plant, building, structure, equipment, or appliance or
  property or any interest in property; and
               (4)  use any or all money or proceeds of bonds and other
  obligations. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 29(a), (b).)
         Sec. 8508.0118.  POWER OF PERSONS TO CONTRACT WITH
  AUTHORITY. (a) A person may contract with the authority in any
  manner authorized by this chapter, Chapter 30, Water Code, or
  Chapter 383, Health and Safety Code, with respect to water, waste,
  pollution control, or any other facility or any service provided by
  the authority.
         (b)  A public agency may enter into and execute a contract
  described by Subsection (a) with the authority and may determine,
  agree, and pledge that all or any part of its payments under the
  contract is payable from the source described in Section 30.030(c),
  Water Code, subject only to the authorization of the contract,
  pledge, and payments by the public agency's governing body. The
  public agency also may use and pledge any other available revenue or
  resource for payment of amounts due under the contract as an
  additional source of payment or as the sole source of payment.
         (c)  A public agency may:
               (1)  set fees, rates, charges, rentals, and other
  amounts, including water charges and garbage collection or handling
  fees, for any services or facilities provided by any utility
  operated by it, or provided pursuant to or in connection with any
  contract with the authority;
               (2)  charge those amounts to and collect those amounts
  from its inhabitants or from any users or beneficiaries of the
  utility, services, or facilities; and
               (3)  use and pledge that money to make payments to the
  authority required under the contract and may covenant to do so in
  amounts sufficient to make all or any part of those payments to the
  authority when due.
         (d)  If a public agency and the authority agree in a
  contract, the payments made by the public agency to the authority
  under the contract are an expense of operation of any facilities or
  utility operated by the public agency. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Secs. 29(c), (d).)
         Sec. 8508.0119.  AWARD OF CERTAIN CONTRACTS. (a) The
  authority shall award a contract to the lowest and best bidder if:
               (1)  the contract is a:
                     (A)  construction, maintenance, operation, or
  repair contract;
                     (B)  contract for the purchase of material,
  equipment, or supplies; or
                     (C)  contract for services other than technical,
  scientific, legal, fiscal, or other professional services; and
               (2)  the contract:
                     (A)  will require an estimated expenditure of more
  than $10,000; or
                     (B)  is for a term of six months or more.
         (b)  If the board finds that an extreme emergency exists, the
  board may award a contract necessary to protect and preserve the
  public health and welfare or the property of the authority without
  using bidding procedures.
         (c)  The authority shall publish notice to bidders once each
  week for three consecutive weeks before the date set for awarding
  the contract. The notice must be published in a newspaper with
  general circulation in the authority and may also be published in
  any other appropriate publication.
         (d)  The notice is sufficient if it states:
               (1)  the time and place at which the bids will be
  opened;
               (2)  the terms on which copies of the plans,
  specifications, or other pertinent information may be obtained;
               (3)  the general nature of the work to be done; and
               (4)  the material, equipment, or supplies to be
  purchased or the nonprofessional services to be rendered.
         (e)  A person who desires to bid on the construction of a work
  or project that is advertised for bids shall, on written
  application to the authority, be provided a copy of the plans and
  specifications or other engineering and architectural documents
  showing all of the details of the work to be done. The authority may
  make a charge to cover the cost of making the copy.
         (f)  A bid must be:
               (1)  in writing;
               (2)  sealed and delivered to the authority; and
               (3)  accompanied by a certified check drawn on a
  responsible bank in this state or, at the discretion of the
  authority, a bid bond from a company approved by the authority, in
  an amount equal to at least one percent of the total amount bid.
         (g)  The authority shall open bids at the place specified in
  the published notice.  The authority shall announce the bids. The
  place where the bids are opened and announced must be open to the
  public. The board shall make the award of the contract.
         (h)  The person with whom a contract is made shall provide
  the performance and payment bonds required by law.
         (i)  A check or bond provided under Subsection (f) is
  forfeited to the authority if the successful bidder fails or
  refuses to:
               (1)  enter into a proper contract; or
               (2)  provide a bond as required by law.
         (j)  The authority may reject any or all bids and may waive
  any irregularity in the bids.
         (k)  This section does not prohibit the authority from taking
  the following actions by negotiated contract and without necessity
  for advertising for bids:
               (1)  purchasing or acquiring land or an interest in
  land from any person;
               (2)  acquiring, constructing, or improving pollution
  control or waste collection and disposal facilities as provided by
  Chapter 30, Water Code, Chapter 383, Health and Safety Code, or
  other applicable law; or
               (3)  purchasing or acquiring surplus property from a
  governmental entity. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 30(a),
  (b), (c), (d), (e), (g), (h).)
         Sec. 8508.0120.  CONSTRUCTION CONTRACTS: PAYMENT. (a) The
  contract price of any construction contract of the authority may be
  paid in partial payments as the work progresses, but the payments
  may not exceed 90 percent of the amount due at the time of the
  payments as shown by the report of the engineer of the authority.
         (b)  During the progress of the work, the executive director
  shall inspect the construction or have the construction inspected
  by the authority's engineer or the engineer's assistants.
         (c)  On certification of the executive director and the
  authority's engineer of the completion of the contract in
  accordance with its terms and, in the case of any construction
  contract for which notice to bidders is required by this chapter, on
  approval of the board, the board shall draw a warrant on its
  depository to pay the balance due on the contract. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 30(f).)
         Sec. 8508.0121.  CONFLICT OF INTEREST IN CONTRACT. An
  officer, agent, or employee of the authority who is financially
  interested in a contract shall disclose that fact to the board
  before the board votes on the acceptance of the contract. (Acts
  69th Leg., 1st C.S., Ch. 3, Sec. 30(i).)
         Sec. 8508.0122.  SURVEYS AND ENGINEERING INVESTIGATIONS.
  The authority may make surveys and engineering investigations to
  develop information for its use. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 34 (part).)
         Sec. 8508.0123.  PLANS. The board may make and determine
  plans necessary to accomplish the purposes for which the authority
  is created and may carry out the plans. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Sec. 34 (part).)
         Sec. 8508.0124.  ACCESS TO AUTHORITY PROPERTY. (a) To
  provide for the safety and welfare of persons and their property or
  for the protection and security of the authority's property and
  facilities, the board may adopt rules with respect to the
  authority's property and any water reservoir or dam the
  construction, operation, or management of which is participated in
  by the authority to control and regulate:
               (1)  ingress, egress, and use; and
               (2)  the operation of land and water vehicles.
         (b)  All public roads, streets, and state highways that as of
  August 29, 1985, traversed the areas to be covered by any impounded
  water shall remain open as a way of public passing to and from the
  lakes created, unless changed by the authority. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 35.)
         Sec. 8508.0125.  AUTHORITY TO EXERCISE POWERS OF POLITICAL
  SUBDIVISIONS UNDER WATER CODE. The authority may exercise:
               (1)  the powers vested in political subdivisions under
  Title 2, Water Code; and
               (2)  the powers necessary to enable the authority to
  participate in programs administered by the development board,
  including programs for:
                     (A)  the acquisition and development of
  facilities;
                     (B)  the sale or lease of facilities; and
                     (C)  financial assistance to political
  subdivisions. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 37.)
         Sec. 8508.0126.  LIMITATIONS ON POWERS AND DUTIES OF
  AUTHORITY; COMMISSION APPROVAL OF CERTAIN PLANS. (a) The powers
  granted and duties prescribed by this chapter are subject to all
  legislative declarations of public policy in the maximum use of the
  storm water, floodwater, and unappropriated flow water of the basin
  for the purposes for which the authority is created.
         (b)  The commission shall consider the adequacy of, and
  approve or refuse to approve, any flood control or conservation
  improvement plan that:
               (1)  is devised by the authority to achieve a plan or
  purpose for which the authority was created; and
               (2)  contemplates improvements that are to be
  supervised by the commission under general law. (Acts 69th Leg.,
  1st C.S., Ch. 3, Secs. 39(a) (part), (b).)
         Sec. 8508.0127.  SUITS. (a) The authority may sue and be
  sued in the name of the authority.
         (b)  Service of process may be accomplished by serving the
  presiding officer or a vice president of the board or the executive
  director. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 15(a), (b).)
  SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
  PROVISIONS
         Sec. 8508.0151.  ADOPTION AND ENFORCEMENT OF RULES. (a) The
  authority may adopt and enforce rules reasonably required to carry
  out this chapter.
         (b)  The board shall adopt rules necessary for the conduct of
  the authority's business.
         (c)  In adopting rules, the board shall comply, as
  appropriate, with the requirements of Chapters 2001 and 2002,
  Government Code.
         (d)  The board shall print its rules and provide copies to
  any person on written request. (Acts 69th Leg., 1st C.S., Ch. 3,
  Secs. 6(h), 31.)
         Sec. 8508.0152.  CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A
  person who violates a rule or order of the authority is subject to a
  civil penalty of not less than $50 or more than $1,000 for each day
  of violation.
         (b)  The authority may sue to recover the penalty in a
  district court in the county in which the violation occurred. A
  penalty shall be paid to the authority.
         (c)  The authority may sue for injunctive relief in a
  district court in the county in which the violation of a rule or
  order occurred or is threatened.
         (d)  The authority may sue for injunctive relief and a
  penalty in the same proceeding. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 32.)
         Sec. 8508.0153.  COURT REVIEW. (a) A person who is
  adversely affected by a rule or order of the authority may sue the
  authority in a district court to set aside the rule or order before
  the 31st day after the date on which the rule or order takes effect.
         (b)  Venue for a suit under Subsection (a) is in any county
  located wholly or partly in the authority. (Acts 69th Leg., 1st
  C.S., Ch. 3, Sec. 33.)
  SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
         Sec. 8508.0201.  DISBURSEMENT OF MONEY. The authority may
  disburse its money only by a check, draft, order, or other
  instrument signed by the person or persons authorized in the
  board's rules or by board resolution. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Sec. 40.)
         Sec. 8508.0202.  ACCOUNTS, CONTRACTS, AND OTHER RECORDS;
  PUBLIC INSPECTION. (a) The authority shall keep complete and
  accurate accounts of its business transactions in accordance with
  generally accepted methods of accounting.
         (b)  The authority shall keep its accounts, contracts,
  documents, minutes, and other records at its principal office.
         (c)  Except as otherwise required by law, the authority may
  not disclose any records that it has relating to trade secrets or
  the economics of operation of any business or industry.
         (d)  Except as provided by Subsection (c), the authority
  shall permit reasonable public inspection of its records during
  regular business hours under rules adopted by the board. (Acts 69th
  Leg., 1st C.S., Ch. 3, Secs. 13(a), (c), (d), (e).)
         Sec. 8508.0203.  FEES AND CHARGES. (a) The authority shall
  establish fees and charges.
         (b)  The fees and charges may not exceed the amount necessary
  to fulfill the obligations imposed by this chapter. (Acts 69th
  Leg., 1st C.S., Ch. 3, Sec. 41.)
         Sec. 8508.0204.  TRUST MONEY. Money collected by or
  donated, granted, loaned, or advanced to the authority is trust
  money for the purposes provided by this chapter. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 44.)
         Sec. 8508.0205.  TAXES AND TAX DEBT PROHIBITED. The
  authority may not:
               (1)  impose a tax; or
               (2)  create debt payable from taxes. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 1(c).)
         Sec. 8508.0206.  DEPOSITORY. (a) The board shall designate
  one or more banks inside or outside the authority to serve as a
  depository for the authority's money.
         (b)  Authority money shall be deposited in a depository bank,
  except that the following may be handled as provided in a trust
  indenture or resolution:
               (1)  bond proceeds or proceeds of other obligations;
               (2)  money pledged to pay the obligations described by
  Subdivision (1);
               (3)  money placed in special funds; and
               (4)  money remitted to a bank of payment for the payment
  of the principal of and interest on obligations.
         (c)  To the extent that money in a depository bank or a
  trustee bank is not invested or insured by the Federal Deposit
  Insurance Corporation, the money must be secured in the manner
  provided by law for the security of county money.
         (d)  The board shall prescribe the term of service for a
  depository.
         (e)  Before designating a depository bank, the board shall:
               (1)  publish notice one time in one or more newspapers
  of general circulation in the authority that are specified by the
  board; or
               (2)  mail a copy of the notice to each bank inside the
  authority.
         (f)  The notice must:
               (1)  state the time and place at which the board will
  meet to designate a depository bank or banks; and
               (2)  invite the banks to submit an application to be
  designated a depository.
         (g)  At the time stated in the notice, the board shall:
               (1)  consider the application and the management and
  condition of each bank that applies; and
               (2)  designate as a depository the bank or banks:
                     (A)  that offer the most favorable terms for
  handling the money; and
                     (B)  that the board finds have proper management
  and are in condition to handle the money.
         (h)  Membership on the board of an officer or director of a
  bank does not disqualify the bank from being designated as a
  depository.
         (i)  If the board does not receive an application before the
  time stated in the notice, the board shall designate one or more
  banks inside or outside the authority as a depository on terms the
  board considers advantageous to the authority. (Acts 69th Leg.,
  1st C.S., Ch. 3, Sec. 47.)
         Sec. 8508.0207.  INVESTMENT OF AUTHORITY MONEY; APPLICATION
  OF INCOME FROM INVESTMENTS. (a) Money in the treasury that is not
  required for the current payment of obligations of the authority or
  for sinking funds and that the board considers available for
  investment may be invested or reinvested by the authority in:
               (1)  direct obligations of the United States;
               (2)  obligations the principal and interest of which
  are guaranteed by the United States;
               (3)  direct obligations of or participation
  certificates guaranteed by:
                     (A)  a farm credit bank;
                     (B)  the Federal National Mortgage Association;
                     (C)  a federal home loan bank; or
                     (D)  a bank for cooperatives;
               (4)  certificates of deposit of a bank or trust company
  the deposits of which are fully secured by a pledge of securities of
  any of the institutions specified by this subsection;
               (5)  other securities eligible for investment under
  other laws; or
               (6)  a combination of the investments listed in this
  subsection.
         (b)  The board shall determine the type and maturity of
  investments made under this section.
         (c)  A resolution relating to the issuance of bonds or other
  obligations must include appropriate provisions relating to the
  investment of money in funds established in connection with the
  authorization of those bonds or other obligations.
         (d)  The board shall direct the application of income from
  investments made under this section. (Acts 69th Leg., 1st C.S., Ch.
  3, Sec. 45.)
         Sec. 8508.0208.  FISCAL YEAR. The authority's fiscal year
  ends on August 31 of each year. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 46(a).)
         Sec. 8508.0209.  AUDIT. (a) In addition to including the
  information required by Subchapter G, Chapter 49, Water Code, the
  audit report prepared under that subchapter must state:
               (1)  the amount of money received by the authority
  under this chapter during the preceding fiscal year; and
               (2)  how, to whom, and for what purpose the money was
  spent.
         (b)  A copy of the audit report prepared under Subchapter G,
  Chapter 49, Water Code, shall be filed:
               (1)  as required by Section 49.194, Water Code;
               (2)  with the governor;
               (3)  with the lieutenant governor;
               (4)  with the speaker of the house of representatives;
               (5)  with the attorney general; and
               (6)  with the comptroller. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Secs. 46(c), (d); New.)
  SUBCHAPTER F. OBLIGATIONS RELATING TO BORROWED MONEY OR GRANTS
         Sec. 8508.0251.  LOANS AND GRANTS. (a) The authority may:
               (1)  borrow money or accept a grant or donation for its
  corporate purposes from any person, including a private source, the
  United States, this state, or a local government; and
               (2)  enter into an agreement in connection with a loan,
  grant, or donation accepted under Subdivision (1).
         (b)  The source of money accepted by the authority is public
  information. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 42.)
         Sec. 8508.0252.  POWER TO APPLY FOR MONEY FOR ENGINEERING
  SURVEYS, DATA COMPILATION AND COLLECTION, AND OTHER PURPOSES. (a)
  The authority may apply to this state, the United States, or any
  other person for money necessary to:
               (1)  secure engineering surveys and the compilation and
  collection of data relating to regional and general conditions
  entering into and influencing the character and extent of the
  improvements necessary to accomplish the storage, control,
  transportation, treatment, conservation, and equitable
  distribution to the greatest public advantage of the storm water,
  floodwater, and normal flow water that is stored and controlled; or
               (2)  accomplish or carry out any of the other purposes
  of this chapter.
         (b)  The authority:
               (1)  shall request an amount it considers sufficient;
               (2)  may make the necessary agreements with the party
  providing the money; and
               (3)  may appropriate the amount of the estimated
  equitable contribution of the costs of developing essential
  engineering data. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 43.)
         Sec. 8508.0253.  POWER TO ISSUE BONDS OR OTHER OBLIGATIONS.
  (a) For the purpose of carrying out any power provided by this
  chapter, including the payment of the expenses of preparing the
  master plan and the payment of engineering and other expenses, the
  authority may issue bonds or other obligations in one general class
  secured by a pledge of all or part of the revenue accruing to the
  authority from any source, including the revenue received from:
               (1)  the sale of water or other products;
               (2)  the rendition of services;
               (3)  tolls; and
               (4)  charges.
         (b)  The obligations must be authorized by a board
  resolution. (Acts 69th Leg., 1st C.S., Ch. 3, Secs. 48(a), (b)
  (part).)
         Sec. 8508.0254.  REFUNDING BONDS. (a) The authority may
  issue refunding bonds to refund outstanding obligations issued
  under this chapter.
         (b)  Refunding bonds may be issued in the manner provided by
  Chapter 1207, Government Code. (Acts 69th Leg., 1st C.S., Ch. 3,
  Sec. 49 (part).)
         Sec. 8508.0255.  FORM OF OBLIGATIONS. Authority obligations
  must:
               (1)  be in the form prescribed by the board;
               (2)  be issued in the authority's name;
               (3)  be signed by the presiding officer or a vice
  president;
               (4)  be attested by the secretary; and
               (5)  bear the authority seal. (Acts 69th Leg., 1st
  C.S., Ch. 3, Secs. 48(b) (part), (c) (part).)
         Sec. 8508.0256.  MATURITY. Authority obligations must
  mature not later than 50 years after the date of their issuance.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 48(c) (part).)
         Sec. 8508.0257.  TRUST INDENTURE. Authority obligations may
  be further secured by a trust indenture with a corporate trustee.
  (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 48(c) (part).)
         Sec. 8508.0258.  ADDITIONAL OBLIGATIONS. A pledge of
  revenue may reserve the right, under specified conditions, to issue
  additional obligations that will be on a parity with or subordinate
  to the obligations then being issued. (Acts 69th Leg., 1st C.S.,
  Ch. 3, Sec. 48(d) (part).)
         Sec. 8508.0259.  ADDITIONAL PROVISIONS IN RESOLUTION
  AUTHORIZING OBLIGATIONS OR TRUST INDENTURE. (a) The resolution
  authorizing obligations or the trust indenture further securing
  obligations may specify additional provisions that constitute a
  contract between the authority and the owners of those obligations.
         (b)  The board may provide for the additional provisions,
  including a corporate trustee or receiver provided by the authority
  to take possession of authority facilities in the event of the
  authority's default in fulfilling the covenants. (Acts 69th Leg., 1st C.S., Ch. 3, Sec. 48(f).)
 
  CHAPTER 8509. PALO DURO WATER DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8509.0001.  DEFINITIONS 
  Sec. 8509.0002.  NATURE OF DISTRICT 
  Sec. 8509.0003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE 
  Sec. 8509.0004.  DISTRICT TERRITORY 
  Sec. 8509.0005.  CORRECTION OF INVALID PROCEDURES 
  SUBCHAPTER B. PROCEDURES FOR ANNEXATION, WITHDRAWAL, OR
  DISSOLUTION
  Sec. 8509.0051.  ANNEXATION OF TERRITORY 
  Sec. 8509.0052.  WITHDRAWAL FROM OR DISSOLUTION OF
                    DISTRICT 
  SUBCHAPTER C. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
  Sec. 8509.0101.  COMPOSITION OF BOARD; TERMS 
  Sec. 8509.0102.  QUALIFICATIONS FOR OFFICE 
  Sec. 8509.0103.  REMOVAL 
  Sec. 8509.0104.  VACANCY 
  Sec. 8509.0105.  OFFICERS 
  Sec. 8509.0106.  VOTE BY BOARD PRESIDENT 
  Sec. 8509.0107.  EMPLOYEES 
  Sec. 8509.0108.  DIRECTOR'S AND TREASURER'S BONDS 
  Sec. 8509.0109.  COMPENSATION OF DIRECTORS 
  Sec. 8509.0110.  INTEREST IN CONTRACT 
  Sec. 8509.0111.  DIRECTOR TRAINING PROGRAM 
  Sec. 8509.0112.  SEPARATION OF POLICYMAKING AND
                    MANAGEMENT FUNCTIONS 
  Sec. 8509.0113.  COMPLAINTS 
  Sec. 8509.0114.  NEGOTIATED RULEMAKING AND ALTERNATIVE
                    DISPUTE RESOLUTION 
  Sec. 8509.0115.  PUBLIC COMMENT POLICY 
  Sec. 8509.0116.  EXPENDITURES 
  Sec. 8509.0117.  SEAL 
  SUBCHAPTER D. POWERS AND DUTIES
  Sec. 8509.0151.  GENERAL WATER SUPPLY POWERS 
  Sec. 8509.0152.  GENERAL PROPERTY POWER 
  Sec. 8509.0153.  CONTRACTS TO SUPPLY WATER AND OPERATE
                    FACILITIES 
  Sec. 8509.0154.  CONTROL OF STORM AND FLOOD WATERS 
  Sec. 8509.0155.  DISTRICT TO RECEIVE AND ACCEPT
                    TECHNICAL AND FINANCIAL ASSISTANCE 
  Sec. 8509.0156.  WATER APPROPRIATION PERMITS 
  Sec. 8509.0157.  UNDERGROUND SOURCES OF WATER 
  Sec. 8509.0158.  LIMITATION ON CONSTRUCTION OF CERTAIN
                    FACILITIES 
  Sec. 8509.0159.  DISPOSAL OF DISTRICT PROPERTY 
  Sec. 8509.0160.  EMINENT DOMAIN 
  Sec. 8509.0161.  COST OF RELOCATING OR ALTERING
                    PROPERTY 
  Sec. 8509.0162.  CERTAIN POWERS RELATED TO DISTRICT
                    PROPERTY 
  Sec. 8509.0163.  PARKS AND RECREATION FACILITIES 
  Sec. 8509.0164.  SURVEYS AND INVESTIGATIONS 
  SUBCHAPTER E. REGULATORY POWERS
  Sec. 8509.0201.  ADOPTION OF RULES 
  Sec. 8509.0202.  ENFORCEMENT OF RULES; PENALTY 
  Sec. 8509.0203.  NOTICE OF RULE PROVIDING PENALTY 
  Sec. 8509.0204.  JUDICIAL NOTICE OF RULES 
  Sec. 8509.0205.  ENFORCEMENT BY PEACE OFFICERS 
  SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
  Sec. 8509.0251.  TAX METHOD 
  Sec. 8509.0252.  AUTHORITY TO IMPOSE TAX; LIMITATION ON
                    TAX RATE; TAX ELECTION 
  Sec. 8509.0253.  DEPOSITORY 
  Sec. 8509.0254.  PAYMENT OF TAX OR ASSESSMENT NOT
                    REQUIRED 
  SUBCHAPTER G. BONDS
  Sec. 8509.0301.  AUTHORITY TO ISSUE BONDS 
  Sec. 8509.0302.  FORM OF BONDS 
  Sec. 8509.0303.  MATURITY 
  Sec. 8509.0304.  ELECTION FOR BONDS PAYABLE FROM AD
                    VALOREM TAXES 
  Sec. 8509.0305.  BONDS PAYABLE FROM REVENUE 
  Sec. 8509.0306.  BONDS PAYABLE FROM AD VALOREM TAXES 
  Sec. 8509.0307.  TAX AND RATE REQUIREMENTS 
  Sec. 8509.0308.  ADDITIONAL SECURITY 
  Sec. 8509.0309.  TRUST INDENTURE 
  Sec. 8509.0310.  INTERIM BONDS OR NOTES 
  Sec. 8509.0311.  USE OF BOND PROCEEDS 
  Sec. 8509.0312.  APPOINTMENT OF RECEIVER 
  Sec. 8509.0313.  REFUNDING BONDS 
  Sec. 8509.0314.  LIMITATION ON RIGHTS OF BONDHOLDERS 
  Sec. 8509.0315.  BONDS EXEMPT FROM TAXATION 
  CHAPTER 8509. PALO DURO WATER DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8509.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Palo Duro Water District.
               (5)  "Member entity" means a county or municipality
  that is a member of the district. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 1B.)
         Sec. 8509.0002.  NATURE OF DISTRICT. The district is a
  conservation and reclamation district created under Section 59,
  Article XVI, Texas Constitution, and a political subdivision of
  this state. (Acts 63rd Leg., R.S., Ch. 438, Sec. 1.)
         Sec. 8509.0003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a) The legislature finds that:
               (1)  all land included in the district will benefit
  from the improvements to be acquired and constructed by the
  district; and
               (2)  the district is created to serve a public use and
  benefit.
         (b)  The accomplishment of the purposes stated in this
  chapter is for the benefit of the people of this state and for the
  improvement of their property and industries. The district, in
  carrying out the purposes of this chapter, will be performing an
  essential public function under the Texas Constitution. (Acts 63rd
  Leg., R.S., Ch. 438, Secs. 2 (part), 26 (part).)
         Sec. 8509.0004.  DISTRICT TERRITORY. Unless modified under
  Subchapter J, Chapter 49, Water Code, this chapter or its
  predecessor statute, Chapter 438, Acts of the 63rd Legislature,
  Regular Session, 1973, or other law, the district's territory
  comprises all of the territory contained in:
               (1)  Hansford and Moore Counties; and
               (2)  the City of Stinnett. (Acts 63rd Leg., R.S.,
  Ch. 438, Sec. 2 (part); New.)
         Sec. 8509.0005.  CORRECTION OF INVALID PROCEDURES. If a
  court holds that any procedure under this chapter violates the
  Texas Constitution or the United States Constitution, the board by
  resolution may provide an alternative procedure that conforms with
  the constitution. (Acts 63rd Leg., R.S., Ch. 438, Sec. 31 (part).)
  SUBCHAPTER B. PROCEDURES FOR ANNEXATION, WITHDRAWAL, OR
  DISSOLUTION
         Sec. 8509.0051.  ANNEXATION OF TERRITORY. (a) Territory,
  whether or not contiguous to the district, may be annexed to the
  district in the manner provided by this section.
         (b)  The board may annex territory or a municipality under
  this section only if a petition requesting annexation is filed with
  the board.  The petition must:
               (1)  describe the territory to be annexed by metes and
  bounds, or otherwise, except that if the territory is the same as
  that contained in the boundaries of a municipality, the petition is
  sufficient if it states that the territory to be annexed is the
  territory contained in the municipal boundaries; and
               (2)  be signed by 50 registered voters of the territory
  or municipality to be annexed, or a majority of the registered
  voters of that territory or municipality, whichever is fewer.
         (c)  If the board determines that the petition complies with
  Subsection (b), that the annexation would be in the best interest of
  the territory or municipality and the district, and that the
  district will be able to supply water to the territory or
  municipality, the board shall:
               (1)  adopt a resolution stating the conditions, if any,
  under which the territory or municipality may be annexed to the
  district; and
               (2)  set a time and place to hold a hearing on the
  question of whether the territory or municipality to be annexed
  will benefit from:
                     (A)  the improvements, works, or facilities owned
  or operated or contemplated to be owned or operated by the district;
  or
                     (B)  the other functions of the district.
         (d)  At least 10 days before the date of the hearing, notice
  of the adoption of the resolution must be published one time in a
  newspaper of general circulation in the territory or municipality
  proposed to be annexed. The notice must:
               (1)  state the time and place of the hearing; and
               (2)  describe the territory in the same manner in which
  Subsection (b) requires or permits the petition to describe the
  territory.
         (e)  The hearing may proceed in the order and under the rules
  prescribed by the board and may be recessed.
         (f)  Any interested person may appear at the hearing and
  offer evidence for or against the annexation.
         (g)  If, at the conclusion of the hearing, the board finds
  that the property in the territory or municipality will benefit
  from the district's present or contemplated improvements, works, or
  facilities, the board shall adopt a resolution making a finding of
  the benefit and calling an election in the territory or
  municipality to be annexed.
         (h)  The resolution must state:
               (1)  the date of the election;
               (2)  each place where the election will be held; and
               (3)  the proposition to be voted on.
         (i)  At least 10 days before the date set for the election,
  notice of the election must be given by publishing a substantial
  copy of the resolution calling the election one time in a newspaper
  of general circulation in the territory proposed to be annexed.
         (j)  If a majority of the votes cast at the election are in
  favor of annexation, the board by resolution shall annex the
  territory to the district.
         (k)  An annexation under this section is incontestable
  except in the manner and within the time for contesting elections
  under the Election Code.
         (l)  In calling an election on the proposition for annexation
  of the territory or municipality, the board may include, as part of
  the same proposition or as a separate proposition, a proposition
  for:
               (1)  the territory to assume its part of the district's
  tax-supported bonds then outstanding and those bonds previously
  voted but not yet sold; and
               (2)  an ad valorem tax to be imposed on taxable property
  in the territory along with the tax in the rest of the district for
  payment of the bonds and maintenance taxes to be imposed as
  permitted by Section 8509.0252.
         (m)  If an election under Subsection (l) fails, the annexed
  territory or municipality shall be excluded from the district.
  (Acts 63rd Leg., R.S., Ch. 438, Secs. 13(d)(1), (2) (part), (3)
  (part).)
         Sec. 8509.0052.  WITHDRAWAL FROM OR DISSOLUTION OF DISTRICT.
  (a) A county or municipality may withdraw from the district or the
  district may dissolve according to this section.
         (b)  To withdraw from the district or to dissolve the
  district, the governing body of a member entity must issue an order
  or adopt a resolution declaring the intent to withdraw from or to
  dissolve the district. The order or resolution must state:
               (1)  the intention to withdraw from the district or to
  call for the dissolution of the district; and
               (2)  the reasons supporting the withdrawal or
  dissolution.
         (c)  Not later than the 30th day after the date the district
  receives an order issued or resolution adopted under Subsection
  (b), the district shall hold a public hearing on the matter
  described by the order or resolution.
         (d)  For a proposed withdrawal of a county or municipality
  from the district, the member entities must reach a financial
  agreement that provides for sufficient revenue for maintaining the
  Palo Duro Reservoir and the dam that impounds the water in the
  reservoir.
         (e)  For a proposed dissolution of the district, the member
  entities must reach a financial agreement that provides for the
  transfer of:
               (1)  the ownership rights of the dam that impounds the
  water in the Palo Duro Reservoir to an entity that assumes
  responsibility for the maintenance of the dam and liability for
  actions related to the dam;
               (2)  all district assets and liabilities to other
  entities; and
               (3)  the responsibility for the continued provision of
  services, if the district provides services.
         (f)  The board must provide an opportunity for the public to
  comment on the financial agreement described by Subsection (d) or
  (e) before the board votes as described by Subsection (g). The
  period for public comment must last not less than 10 days.
         (g)  After consideration of the public comments submitted
  under Subsection (f), the board shall vote on the issue described by
  the order issued or resolution adopted under Subsection (b). The
  board may proceed with the withdrawal or dissolution only if
  two-thirds of all of the members of the board vote in favor of
  withdrawal or dissolution.
         (h)  If the board votes in favor of withdrawal or dissolution
  as provided by Subsection (g), the governing body of each member
  entity shall vote on the matter of withdrawal or dissolution.
         (i)  A withdrawal or dissolution authorized under this
  section does not take effect until:
               (1)  the governing body of each county and municipality
  has voted in favor of withdrawal or dissolution;
               (2)  all conditions specified in the financial
  agreement described by Subsection (d) or (e) have been met; and
               (3)  all actions described in the financial agreement
  described by Subsection (d) or (e) have been completed. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 13A.)
  SUBCHAPTER C. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
         Sec. 8509.0101.  COMPOSITION OF BOARD; TERMS. (a) Four
  directors are appointed by the commissioners court of each county
  contained in the district, except for Hutchinson County, and one
  director is appointed by the city council of the City of Stinnett.
         (b)  Directors serve staggered two-year terms expiring
  December 31.
         (c)  Each December the commissioners court of each county
  contained in the district, except for Hutchinson County, and the
  city council of the City of Stinnett shall appoint a director or
  directors from that county or city to succeed the director or
  directors appointed by that commissioners court or city council
  whose terms expire on the 31st day of that month. (Acts 63rd Leg.,
  R.S., Ch. 438, Secs. 17(a), (b) (part), (c) (part).)
         Sec. 8509.0102.  QUALIFICATIONS FOR OFFICE. (a) A person
  may be appointed a director by the commissioners court of a county
  only if the person resides in and owns taxable property in the
  county from which the person is appointed.
         (b)  A person may be appointed director by the city council
  of the City of Stinnett only if the person resides in and owns
  taxable property in the city.
         (c)  A member of a governing body of a county or of the City
  of Stinnett or an employee of a county or of the City of Stinnett may
  not be appointed director. (Acts 63rd Leg., R.S., Ch. 438,
  Secs. 17(b) (part), (c) (part).)
         Sec. 8509.0103.  REMOVAL. Not earlier than the 10th day
  after the date a director receives written notice of a charge
  against the director, and after an opportunity to be heard in person
  or through the appearance of counsel at a public hearing on the
  matter of the charge described by the notice, the board may remove a
  director for:
               (1)  inefficiency;
               (2)  neglect of duty; or
               (3)  misconduct in office. (Acts 63rd Leg., R.S.,
  Ch. 438, Sec. 19C.)
         Sec. 8509.0104.  VACANCY. (a) If a director appointed by
  the commissioners court of a county ceases to reside in the county
  or otherwise ceases to serve as a director, the commissioners court
  of that county shall appoint a director to fill the vacancy for the
  unexpired term.
         (b)  If a director appointed by the city council of the City
  of Stinnett ceases to reside in the city or otherwise ceases to
  serve as a director, the city council of that city shall appoint a
  director to fill the vacancy for the unexpired term. (Acts 63rd
  Leg., R.S., Ch. 438, Secs. 17(b) (part), (c) (part).)
         Sec. 8509.0105.  OFFICERS. (a) The board shall elect from
  the board's membership a president, a vice president, and any other
  officers as the board determines necessary. The president is the
  district's chief executive officer and the board's presiding
  officer. Except as provided by Section 8509.0106, the vice
  president shall act as president if the president is absent or fails
  or declines to act.
         (b)  The board shall appoint a secretary and a treasurer, who
  are not required to be directors. The board may combine the offices
  of secretary and treasurer. (Acts 63rd Leg., R.S., Ch. 438, Sec. 18
  (part).)
         Sec. 8509.0106.  VOTE BY BOARD PRESIDENT. The president has
  the same right to vote as any other director. The vice president
  may not exercise the president's right to vote. (Acts 63rd Leg.,
  R.S., Ch. 438, Sec. 18 (part).)
         Sec. 8509.0107.  EMPLOYEES. The board may employ a general
  manager, attorneys, accountants, engineers, or other technical or
  nontechnical employees or assistants and set the amount and manner
  of their compensation. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19
  (part).)
         Sec. 8509.0108.  DIRECTOR'S AND TREASURER'S BONDS. (a) Each
  director shall give bond in the amount of $5,000 conditioned on the
  faithful performance of the director's duties.
         (b)  The treasurer shall give bond in an amount required by
  the board. The treasurer's bond must be conditioned on the
  treasurer's faithful accounting for all money that comes into the
  treasurer's custody as district treasurer. (Acts 63rd Leg., R.S.,
  Ch. 438, Secs. 17(c) (part), 18 (part).)
         Sec. 8509.0109.  COMPENSATION OF DIRECTORS. (a) Unless the
  board by resolution increases the fee to an amount authorized by
  Section 49.060, Water Code, each director:
               (1)  shall receive a fee for attending each board
  meeting not to exceed $25 for a meeting or $50 in one calendar
  month; and
               (2)  is entitled to an additional amount not to exceed
  $25 for each day that the director devotes to serving the district's
  business if the service is expressly approved by the board.
         (b)  In all areas of conflict with Subsection (a) of this
  section, Section 49.060, Water Code, takes precedence. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 17(d) (part); New.)
         Sec. 8509.0110.  INTEREST IN CONTRACT. (a) A director who
  has a financial interest in a contract under consideration by the
  district for the purchase, sale, lease, rental, or supply of
  property, including supplies, materials, and equipment, or the
  construction of facilities, shall disclose that fact to the other
  directors and may not vote on or participate in discussions during
  board meetings on the acceptance of the contract.
         (b)  A director's financial interest does not affect the
  validity of a contract if disclosure is made and the director with
  the financial interest does not vote on the question of entering
  into the contract. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19B.)
         Sec. 8509.0111.  DIRECTOR TRAINING PROGRAM. (a) A person
  who is appointed to and qualifies for office as a director may not
  vote, deliberate, or be counted as a director in attendance at a
  board meeting until the person completes a training program that
  complies with this section.
         (b)  The training program must provide the person with
  information regarding:
               (1)  the law governing district operations;
               (2)  the district's programs, functions, rules, and
  budget;
               (3)  the scope of and limitations on the district's
  rulemaking authority;
               (4)  the results of the district's most recent formal
  audit;
               (5)  the requirements of:
                     (A)  laws relating to open meetings, public
  information, administrative procedure, and disclosing conflicts of
  interest; and
                     (B)  other laws applicable to members of the
  governing body of a water district in performing their duties; and
               (6)  any applicable ethics policies adopted by the
  board or the Texas Ethics Commission.
         (c)  A person appointed to the board is entitled to
  reimbursement for the travel expenses incurred in attending the
  training program regardless of whether the attendance at the
  program occurs before or after the person qualifies for office.
         (d)  The board shall create a training manual that includes
  the information required by Subsection (b). The board shall
  distribute a copy of the training manual annually to each director.
  On receipt of the training manual, each director shall sign a
  statement acknowledging receipt of the training manual. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 19D.)
         Sec. 8509.0112.  SEPARATION OF POLICYMAKING AND MANAGEMENT
  FUNCTIONS. The board shall develop and implement policies that
  clearly separate the policymaking responsibilities of the board and
  the management responsibilities of the district's general manager
  and staff. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19E.)
         Sec. 8509.0113.  COMPLAINTS. (a) The district shall
  maintain a system to promptly and efficiently act on complaints
  filed with the district. The district shall maintain information
  about parties to the complaint, the subject matter of the
  complaint, a summary of the results of the review or investigation
  of the complaint, and its disposition.
         (b)  The district shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The district shall periodically notify the parties to
  the complaint of the status of the complaint until final
  disposition. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19F.)
         Sec. 8509.0114.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION. (a) The district shall develop a policy to
  encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of district rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the district's
  jurisdiction.
         (b)  The district's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The district shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19G.)
         Sec. 8509.0115.  PUBLIC COMMENT POLICY. The board shall
  develop and implement policies that provide the public with a
  reasonable opportunity to appear before the board and to speak on
  any agenda item at board meetings. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 19A.)
         Sec. 8509.0116.  EXPENDITURES. The board may provide for
  the payment of expenditures considered essential to the proper
  maintenance of the district and its affairs. (Acts 63rd Leg., R.S.,
  Ch. 438, Sec. 19 (part).)
         Sec. 8509.0117.  SEAL. The board may adopt a seal for the
  district. (Acts 63rd Leg., R.S., Ch. 438, Sec. 18 (part).)
  SUBCHAPTER D. POWERS AND DUTIES
         Sec. 8509.0151.  GENERAL WATER SUPPLY POWERS. (a) The
  district, inside or outside its boundaries, may:
               (1)  develop, construct, or purchase a dam or
  reservoir;
               (2)  in order to preserve and protect the purity of the
  waters of the state and of the district and conserve and reclaim
  those waters for beneficial use by the district's inhabitants,
  provide any plant, work, facility, or appliance incident to or
  helpful or necessary to the collection, transportation,
  processing, disposal, or control of those waters for agricultural,
  municipal, domestic, oil field flooding, mining, or industrial
  purposes;
               (3)  construct or purchase any plant or other facility
  necessary or useful to:
                     (A)  provide a source of water supply;
                     (B)  store or process the water; or
                     (C)  transport or distribute the water for
  irrigation, livestock raising, agricultural, municipal, domestic,
  or industrial purposes;
               (4)  impound, store, control, and conserve the storm
  and flood waters and the unappropriated flow waters, including the
  storm and flood waters and unappropriated flow waters of Palo Duro
  Creek and Horse Creek, by complying with Subchapters A-D, Chapter
  11, and Subchapter B, Chapter 12, Water Code;
               (5)  acquire or construct a dam or any work, plant, or
  other facility necessary or useful to impound, process, or
  transport water to a municipality or other entity for municipal,
  agricultural, domestic, industrial, oil field flooding, or mining
  purposes; and
               (6)  develop or purchase additional sources of water,
  subject to Section 8509.0157.
         (b)  The district may acquire land inside or outside the
  district's boundaries and construct, lease, or otherwise acquire
  any work, plant, or other facility necessary or useful to:
               (1)  divert, further impound, or store water;
               (2)  process the water; or
               (3)  transport the water to a municipality or other
  entity for agricultural, municipal, domestic, industrial, oil
  field flooding, or mining purposes.
         (c)  The board shall determine the size of a dam and
  reservoir developed, constructed, or purchased under Subsection
  (a), taking into consideration probable future increases in water
  requirements. The size of the dam may not be limited by the amount
  of water the commission initially authorizes to be impounded by the
  dam.
         (d)  The district may lease or otherwise acquire rights in
  and to storage and storage capacity in any reservoir constructed or
  to be constructed by any person or from the United States. (Acts
  63rd Leg., R.S., Ch. 438, Secs. 3 (part), 8, 9, 12 (part).)
         Sec. 8509.0152.  GENERAL PROPERTY POWER. In addition to
  powers granted the district under other law, the district has the
  power to purchase, construct, maintain, or in any other manner
  acquire, provide, and develop all works, facilities, improvements,
  lands, easements, and properties that may be necessary or useful in
  fulfilling any district purpose. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 11 (part).)
         Sec. 8509.0153.  CONTRACTS TO SUPPLY WATER AND OPERATE
  FACILITIES. (a) The district may contract with a municipality or
  other entity to supply water to the municipality or entity.
         (b)  The district may contract with a municipality for the
  rental or leasing of or for the operation of the municipality's
  water production, water supply, and water filtration or
  purification facilities on the consideration agreed to by the
  district and the municipality.
         (c)  A contract entered into under this section may:
               (1)  be on terms and for the time agreed to by the
  parties; and
               (2)  provide that the contract will continue in effect
  until bonds specified in the contract and refunding bonds issued in
  lieu of the bonds are paid. (Acts 63rd Leg., R.S., Ch. 438, Sec. 6.)
         Sec. 8509.0154.  CONTROL OF STORM AND FLOOD WATERS. The
  district may:
               (1)  control, store, conserve, protect, distribute,
  and use the storm and flood waters in the district for all useful
  purposes permitted by law; and
               (2)  implement flood prevention and control measures in
  the district and prevent or aid in preventing damage to district
  lands and the soil and fertility of those lands. (Acts 63rd Leg.,
  R.S., Ch. 438, Sec. 11 (part).)
         Sec. 8509.0155.  DISTRICT TO RECEIVE AND ACCEPT TECHNICAL
  AND FINANCIAL ASSISTANCE. The district may receive and accept
  technical and financial assistance from other districts or state
  agencies or from the United States to accomplish the purposes
  described by Sections 8509.0152 and 8509.0154. (Acts 63rd Leg.,
  R.S., Ch. 438, Sec. 11 (part).)
         Sec. 8509.0156.  WATER APPROPRIATION PERMITS. (a) Through
  an appropriate hearing, the district may obtain an appropriation
  permit from the commission, as provided by Subchapters A-D, Chapter
  11, and Subchapter B, Chapter 12, Water Code.
         (b)  On application of the district or at the will of the
  commission and after an appropriate hearing, the commission may
  modify an appropriation permit obtained by the district from the
  commission to increase or decrease the amount of water that may be
  appropriated and the amount that may be stored by the district to
  meet fluctuating demands.
         (c)  On application by the district or by the commission's
  own action, the commission shall redetermine the maximum amount of
  water that the district may store in the district's reservoir. In
  making this determination, the commission shall consider the needs
  of the municipalities and other entities that purchase water from
  the district.
         (d)  The district may acquire a water appropriation permit
  from a permit owner. (Acts 63rd Leg., R.S., Ch. 438, Secs. 7, 12
  (part).)
         Sec. 8509.0157.  UNDERGROUND SOURCES OF WATER. The district
  may not develop or otherwise acquire underground sources of water.
  (Acts 63rd Leg., R.S., Ch. 438, Sec. 5(a) (part).)
         Sec. 8509.0158.  LIMITATION ON CONSTRUCTION OF CERTAIN
  FACILITIES. The district may not construct a dam or other facility
  for impounding water unless the plans for the dam or facility are
  approved by the commission. (Acts 63rd Leg., R.S., Ch. 438, Sec.
  5(a) (part).)
         Sec. 8509.0159.  DISPOSAL OF DISTRICT PROPERTY. The
  district may sell, trade, or otherwise dispose of any property
  considered by the district not to be needed for district purposes,
  subject to the terms of any deed of trust or other indenture. (Acts
  63rd Leg., R.S., Ch. 438, Sec. 5(b).)
         Sec. 8509.0160.  EMINENT DOMAIN. (a) To carry out a power
  conferred by this chapter, the district may exercise the power of
  eminent domain to acquire:
               (1)  the fee simple title to land and other property and
  easements inside the district, including land needed for a
  reservoir or dam or a flood easement above the probable high-water
  line around a reservoir; and
               (2)  the fee simple title to land and other property and
  easements outside the district, except for land, other property,
  and easements to be used for a dam or facility for the impoundment
  or storage of water.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code.
         (c)  The district is a municipal corporation for the purposes
  of Section 21.021, Property Code.
         (d)  The district may not exercise the power of eminent
  domain to acquire property owned by any other political
  subdivision.
         (e)  In exercising the power of eminent domain against a
  person that has the power of eminent domain or a receiver or trustee
  for that person, the district may acquire an easement only and not
  the fee title.
         (f)  The board shall determine the amount of and the type of
  interest in land, other property, or easements to be acquired under
  this section.
         (g)  The district's authority under this section to exercise
  the power of eminent domain expired on September 1, 2013, unless the
  district submitted a letter to the comptroller in accordance with
  Section 2206.101(b), Government Code, not later than December 31,
  2012. (Acts 63rd Leg., R.S., Ch. 438, Sec. 10; New.)
         Sec. 8509.0161.  COST OF RELOCATING OR ALTERING PROPERTY.
  If the district's exercise of the power of eminent domain, the power
  of relocation, or any other power granted by this chapter makes
  necessary relocating, raising, rerouting, changing the grade of, or
  altering the construction of a highway, railroad, electric
  transmission line, telephone or telegraph property or facility, or
  pipeline, the necessary action shall be accomplished at the
  district's sole expense. (Acts 63rd Leg., R.S., Ch. 438, Sec. 15.)
         Sec. 8509.0162.  CERTAIN POWERS RELATED TO DISTRICT
  PROPERTY. The district may:
               (1)  lease the hunting rights on property owned by the
  district;
               (2)  develop, manage, or lease property owned by the
  district for any recreational purpose; and
               (3)  lease property owned by the district to a person
  seeking to develop renewable energy resources. (Acts 63rd Leg.,
  R.S., Ch. 438, Sec. 3A.)
         Sec. 8509.0163.  PARKS AND RECREATION FACILITIES. The
  district may establish or otherwise provide for public parks and
  recreation facilities and may acquire land in the district for
  those purposes. (Acts 63rd Leg., R.S., Ch. 438, Sec. 14.)
         Sec. 8509.0164.  SURVEYS AND INVESTIGATIONS. The board may
  conduct a survey or an engineering investigation to provide
  information for the district to facilitate the accomplishment of a
  district purpose. (Acts 63rd Leg., R.S., Ch. 438, Sec. 19 (part).)
  SUBCHAPTER E. REGULATORY POWERS
         Sec. 8509.0201.  ADOPTION OF RULES. The board may adopt
  reasonable rules to:
               (1)  secure, maintain, and preserve the sanitary
  condition of water in and water that flows into any reservoir owned
  by the district;
               (2)  prevent waste of or the unauthorized use of water;
  and
               (3)  regulate residence, hunting, fishing, boating,
  camping, and any other recreational or business privilege along or
  around any reservoir, body of land, or easement owned by the
  district. (Acts 63rd Leg., R.S., Ch. 438, Sec. 13(a).)
         Sec. 8509.0202.  ENFORCEMENT OF RULES; PENALTY. (a) The
  district by rule may prescribe reasonable penalties for the
  violation of a district rule.
         (b)  A penalty may consist of a fine not to exceed $200.
         (c)  A penalty prescribed under this section is in addition
  to any other penalty provided by the laws of this state. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 13(b) (part).)
         Sec. 8509.0203.  NOTICE OF RULE PROVIDING PENALTY. (a) If
  the district adopts a rule that provides a penalty, the district
  must publish a substantive statement of the rule and the penalty
  once a week for two consecutive weeks in each county in which any
  part of the reservoir to which the rule applies is situated.
         (b)  A single statement must be as condensed as possible so
  that the act prohibited by the rule can be easily understood.
         (c)  The statement may include notice of any number of rules.
         (d)  The notice must state that:
               (1)  a person who violates the rule is subject to a
  penalty; and
               (2)  the rule is on file in the district's principal
  office, where the rule may be read by any interested person.
         (e)  A rule takes effect five days after the date of second
  publication of the statement under this section. (Acts 63rd Leg.,
  R.S., Ch. 438, Sec. 13(b) (part).)
         Sec. 8509.0204.  JUDICIAL NOTICE OF RULES. A court shall
  take judicial notice of a rule adopted under this subchapter and
  published as required by Section 8509.0203, and the court shall
  consider the rule to be similar in nature to a penal ordinance of a
  municipality. (Acts 63rd Leg., R.S., Ch. 438, Sec. 13(b) (part).)
         Sec. 8509.0205.  ENFORCEMENT BY PEACE OFFICERS. (a) A
  licensed peace officer may make an arrest when necessary to prevent
  or abate the commission of an offense:
               (1)  in violation of a district rule or a law of this
  state that occurs or threatens to occur on any land, water, or
  easement owned or controlled by the district; or
               (2)  involving damage to any property owned or
  controlled by the district.
         (b)  A peace officer may make an arrest under Subsection
  (a)(2) at any location. (Acts 63rd Leg., R.S., Ch. 438, Sec.
  13(c).)
  SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
         Sec. 8509.0251.  TAX METHOD. (a) The district shall use the
  ad valorem plan of taxation.
         (b)  The board is not required to hold a hearing on the
  adoption of a plan of taxation. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 16 (part).)
         Sec. 8509.0252.  AUTHORITY TO IMPOSE TAX; LIMITATION ON TAX
  RATE; TAX ELECTION. (a) If a tax is authorized at an election under
  Section 49.107, Water Code, the district annually may impose an ad
  valorem tax on the taxable property in the district to provide
  money:
               (1)  necessary to construct or acquire, maintain, and
  operate dams, works, plants, and facilities considered essential or
  beneficial to the district and the district's purposes; or
               (2)  adequate to defray the cost of the district's
  maintenance, operation, and administration.
         (b)  The district may not impose an ad valorem tax for the
  district's maintenance, operation, and administration that exceeds
  50 cents on the $100 assessed valuation of the taxable property in
  the district.
         (c)  An election for the imposition of taxes authorized by
  this section must be:
               (1)  ordered by the board; and
               (2)  held and conducted in the manner provided by this
  chapter relating to elections for the authorization of bonds.
  (Acts 63rd Leg., R.S., Ch. 438, Sec. 27 (part).)
         Sec. 8509.0253.  DEPOSITORY. (a) The board shall designate
  one or more banks in the district to serve as depository for the
  district's money.
         (b)  District money shall be deposited with a designated
  depository bank or banks, except that:
               (1)  money pledged to pay bonds may be deposited with
  the trustee bank named in the trust agreement; and
               (2)  money shall be remitted to the bank of payment for
  the payment of principal of and interest on bonds.
         (c)  To the extent that money in a depository bank or a
  trustee bank is not insured by the Federal Deposit Insurance
  Corporation, the money must be secured in the manner provided by law
  for the security of county funds.
         (d)  The board shall prescribe the terms of service for
  depositories.
         (e)  Before designating a depository bank, the board shall
  issue a notice that:
               (1)  states the time and place at which the board will
  meet to designate a depository bank or banks; and
               (2)  invites the banks in the district to submit an
  application to be designated as a depository.
         (f)  The notice must be published one time in a newspaper or
  newspapers published in the district and specified by the board.
         (g)  At the time stated in the notice, the board shall:
               (1)  consider the application and the management and
  condition of each bank that applies; and
               (2)  designate as a depository the bank or banks that:
                     (A)  offer the most favorable terms for handling
  the money; and
                     (B)  the board finds have proper management and
  are in condition to handle the money.
         (h)  Membership on the board of an officer or director of a
  bank does not disqualify the bank from being designated as a
  depository.
         (i)  If the board does not receive any applications before
  the time stated in the notice, the board shall designate one or more
  banks located inside or outside the district on terms that the board
  finds advantageous to the district. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 29.)
         Sec. 8509.0254.  PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.
  The district is not required to pay a tax or assessment on a
  district project or any part of the project. (Acts 63rd Leg., R.S.,
  Ch. 438, Sec. 26 (part).)
  SUBCHAPTER G. BONDS
         Sec. 8509.0301.  AUTHORITY TO ISSUE BONDS. (a) The district
  may issue bonds to carry out any power conferred by this chapter,
  including to provide a source of water supply for municipalities
  and other users for agricultural, municipal, domestic, industrial,
  oil field flooding, and mining purposes.
         (b)  The bonds must be authorized by a board resolution.
  (Acts 63rd Leg., R.S., Ch. 438, Secs. 20(a) (part), (b) (part), (c),
  (e) (part).)
         Sec. 8509.0302.  FORM OF BONDS. District bonds must be:
               (1)  issued in the district's name;
               (2)  signed by the president or vice president; and
               (3)  attested by the secretary. (Acts 63rd Leg., R.S.,
  Ch. 438, Sec. 20(b) (part).)
         Sec. 8509.0303.  MATURITY. District bonds must mature not
  later than 40 years after the date of their issuance. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 20(b) (part).)
         Sec. 8509.0304.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
  TAXES. (a) Bonds, other than refunding bonds, payable wholly or
  partly from ad valorem taxes may not be issued unless authorized by
  a majority vote of the voters voting at an election held for that
  purpose.
         (b)  The board may call an election under this section
  without a petition. The resolution calling the election must
  specify:
               (1)  the time and places at which the election will be
  held;
               (2)  the purpose for which the bonds will be issued;
               (3)  the maximum amount of the bonds;
               (4)  the maximum maturity of the bonds;
               (5)  the form of the ballot; and
               (6)  the presiding judge for each polling place.
         (c)  Notice of the election must be given by publishing a
  substantial copy of the resolution calling the election in one
  newspaper published in each municipality contained in the district
  for two consecutive weeks. The first publication must be not later
  than the 21st day before the date of the election. In any
  municipality in which a newspaper is not published, notice must be
  given by posting a copy of the resolution in three public places.
         (d)  The district may issue bonds not payable wholly or
  partly from ad valorem taxes without an election. (Acts 63rd Leg.,
  R.S., Ch. 438, Secs. 23(a), (b).)
         Sec. 8509.0305.  BONDS PAYABLE FROM REVENUE. (a) In this
  section, "net revenue" means the district's gross revenue and
  income from all sources less the amount necessary to pay the cost of
  maintaining and operating the district and the district's property.
         (b)  Bonds issued under this subchapter may be secured under
  board resolution by a pledge of:
               (1)  all or part of the district's net revenue;
               (2)  the net revenue of one or more contracts made
  before or after the issuance of the bonds; or
               (3)  other revenue or income specified by board
  resolution or in the trust indenture.
         (c)  The pledge may reserve the right to issue additional
  bonds on a parity with, or subordinate to, the bonds being issued,
  subject to conditions specified by the pledge. (Acts 63rd Leg.,
  R.S., Ch. 438, Secs. 20(a) (part), (d).)
         Sec. 8509.0306.  BONDS PAYABLE FROM AD VALOREM TAXES. The
  board may issue bonds payable, as pledged by board resolution,
  from:
               (1)  ad valorem taxes imposed on taxable property in
  the district; or
               (2)  ad valorem taxes and revenue of the district.
  (Acts 63rd Leg., R.S., Ch. 438, Secs. 20(a) (part), (e) (part).)
         Sec. 8509.0307.  TAX AND RATE REQUIREMENTS. (a) If the
  district issues bonds payable wholly or partly from ad valorem
  taxes, the board shall impose an ad valorem tax on the taxable
  property in the district sufficient to pay the principal of and the
  interest on the bonds as the bonds and interest become due without
  limit as to the rate or the amount. The board may adopt the rate of
  the tax for any year after considering the money received from the
  pledged revenue available for payment of principal and interest to
  the extent and in the manner permitted by the resolution
  authorizing the issuance of the bonds.
         (b)  If the district issues bonds payable wholly or partly
  from revenue, the board shall set and revise the rates of
  compensation for water sold and services rendered by the district.
         (c)  For bonds payable wholly from revenue, the rates of
  compensation must be sufficient to:
               (1)  pay the expense of operating and maintaining the
  district's facilities;
               (2)  pay the bonds as they mature and the interest as it
  accrues; and
               (3)  maintain the reserve and other funds as provided
  by the resolution authorizing the issuance of the bonds.
         (d)  For bonds payable partly from revenue, the rates of
  compensation must be sufficient to assure compliance with the
  resolution authorizing the issuance of the bonds. (Acts 63rd Leg.,
  R.S., Ch. 438, Secs. 20(e) (part), (f), 28(h).)
         Sec. 8509.0308.  ADDITIONAL SECURITY. (a) District bonds,
  including refunding bonds, that are not payable wholly from ad
  valorem taxes may be additionally secured, at the board's
  discretion, by a deed of trust or mortgage lien on the district's
  physical property and all franchises, easements, water rights and
  appropriation permits, leases, and contracts and all rights
  appurtenant to the property, vesting in the trustee power to:
               (1)  sell the property for the payment of the debt;
               (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:
               (1)  is the absolute owner of the property, facilities,
  and rights purchased; and
               (2)  is entitled to maintain and operate the property,
  facilities, and rights. (Acts 63rd Leg., R.S., Ch. 438, Sec. 22
  (part).)
         Sec. 8509.0309.  TRUST INDENTURE. (a) District bonds,
  including refunding bonds, that are not payable wholly from ad
  valorem taxes may be additionally secured by a trust indenture. The
  trustee may be a bank with trust powers located inside or outside
  the state.
         (b)  A trust indenture, regardless of the existence of a deed
  of trust or mortgage lien on property, may:
               (1)  provide for the security of the bonds and the
  preservation of the trust estate as prescribed by the board;
               (2)  provide for amendment or modification of the trust
  indenture;
               (3)  provide for the issuance of bonds to replace lost
  or mutilated bonds;
               (4)  condition the right to spend district money or
  sell district property on the approval of a licensed engineer
  selected as provided by the trust indenture; and
               (5)  provide for the investment of district money.
  (Acts 63rd Leg., R.S., Ch. 438, Sec. 22 (part).)
         Sec. 8509.0310.  INTERIM BONDS OR NOTES. Before issuing
  definitive bonds, the board may issue interim bonds or notes
  exchangeable for definitive bonds. (Acts 63rd Leg., R.S., Ch. 438,
  Sec. 20(a) (part).)
         Sec. 8509.0311.  USE OF BOND PROCEEDS. (a) The district may
  set aside an amount of proceeds from the sale of bonds issued under
  this subchapter for the payment of interest expected to accrue
  during construction and a reserve interest and sinking fund. The
  resolution authorizing the bonds may provide for setting aside and
  using the proceeds as provided by this subsection.
         (b)  The district may use proceeds from the sale of the bonds
  to pay any expense necessarily incurred in accomplishing the
  district's purpose, including any expense of issuing and selling
  the bonds.
         (c)  The proceeds from the sale of the bonds may be
  temporarily invested in direct obligations of the United States
  maturing not later than the first anniversary of the date of
  investment. (Acts 63rd Leg., R.S., Ch. 438, Sec. 20(g).)
         Sec. 8509.0312.  APPOINTMENT OF RECEIVER. (a) On default or
  threatened default in the payment of principal of or interest on
  bonds issued under this subchapter that are payable wholly or
  partly from revenue, a court may, on petition of the holders of
  outstanding bonds, appoint a receiver for the district.
         (b)  The receiver may collect and receive all district income
  except taxes, employ and discharge district agents and employees,
  take charge of money on hand, except money received from taxes,
  unless commingled, 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 or to renew those 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 bondholders. (Acts
  63rd Leg., R.S., Ch. 438, Sec. 20(h) (part).)
         Sec. 8509.0313.  REFUNDING BONDS. (a) The district may
  issue refunding bonds to refund outstanding bonds issued under
  this subchapter and interest on those bonds.
         (b)  Refunding bonds may:
               (1)  be issued to refund bonds of more than one series;
               (2)  combine the pledges for the outstanding bonds for
  the security of the refunding bonds; or
               (3)  be secured by a pledge of other or additional
  revenue or mortgage liens.
         (c)  The provisions of this subchapter regarding the
  issuance of other bonds, their security, and the remedies of the
  holders apply to refunding bonds.
         (d)  The comptroller shall register the refunding bonds on
  surrender and cancellation of the bonds to be refunded.
         (e)  Instead of issuing bonds to be registered on the
  surrender and cancellation of the bonds to be refunded, the
  district, in the resolution authorizing the issuance of the
  refunding bonds, may provide for the sale of the refunding bonds and
  the deposit of the proceeds in a bank at which the bonds to be
  refunded are payable. In that case, the refunding bonds may be
  issued in an amount sufficient to pay the principal of and interest
  on the bonds to be refunded to their option date or maturity date,
  and the comptroller shall register the refunding bonds without the
  surrender and cancellation of the bonds to be refunded. (Acts 63rd
  Leg., R.S., Ch. 438, Sec. 21.)
         Sec. 8509.0314.  LIMITATION ON RIGHTS OF BONDHOLDERS. The
  resolution authorizing the 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. (Acts 63rd Leg., R.S., Ch. 438, Sec. 20(h)
  (part).)
         Sec. 8509.0315.  BONDS EXEMPT FROM TAXATION. A district
  bond, the transfer of the bond, and the income from the bond,
  including profits made on the sale of the bond, are exempt from
  taxation in this state. (Acts 63rd Leg., R.S., Ch. 438, Sec. 26
  (part).)
         SECTION 1.04.  DISTRICTS GOVERNING GROUNDWATER.  Subtitle H,
  Title 6, Special District Local Laws Code, is amended by adding Chapters 8893 and 8894 to read as follows:
 
  CHAPTER 8893. LIVE OAK UNDERGROUND WATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8893.0001.  DEFINITIONS 
  Sec. 8893.0002.  NATURE OF DISTRICT 
  Sec. 8893.0003.  DISTRICT TERRITORY 
  Sec. 8893.0004.  CONFLICTS OF LAW 
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8893.0051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8893.0052.  ELECTION OF DIRECTORS 
  Sec. 8893.0053.  ELECTION OF DIRECTORS AFTER ANNEXATION 
  Sec. 8893.0054.  ELECTION DATE 
  Sec. 8893.0055.  QUALIFICATIONS FOR OFFICE 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8893.0101.  GENERAL POWERS AND DUTIES 
  Sec. 8893.0102.  ADMINISTRATIVE PROCEDURES 
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
  Sec. 8893.0151.  TAX AND BOND PROVISIONS 
  CHAPTER 8893. LIVE OAK UNDERGROUND WATER CONSERVATION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8893.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Live Oak Underground Water
  Conservation District. (Acts 71st Leg., R.S., Ch. 715, Sec. 2;
  New.)
         Sec. 8893.0002.  NATURE OF DISTRICT. The district is
  created to provide for the conservation, preservation, protection,
  recharge, and prevention of waste of the groundwater reservoirs
  located under district land, consistent with the objectives of
  Section 59, Article XVI, Texas Constitution, and Chapter 36, Water
  Code.  (Acts 71st Leg., R.S., Ch. 715, Sec. 4.)
         Sec. 8893.0003.  DISTRICT TERRITORY. The district includes
  the territory in Live Oak County unless the district's territory
  has been modified under:
               (1)  Subchapter J or K, Chapter 36, Water Code; or
               (2)  other law. (Acts 71st Leg., R.S., Ch. 715, Sec. 3;
  New.)
         Sec. 8893.0004.  CONFLICTS OF LAW. (a) This section applies
  only to a provision of Chapter 36, Water Code, enacted on or before
  June 12, 2017.
         (b)  If there is a conflict between this chapter and Chapter
  36, Water Code, this chapter controls. (Acts 71st Leg., R.S., Ch.
  715, Sec. 13; New.)
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8893.0051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of five directors.
         (b)  Directors serve staggered four-year terms. (Acts 71st
  Leg., R.S., Ch. 715, Secs. 12(a), (d).)
         Sec. 8893.0052.  ELECTION OF DIRECTORS. One director is
  elected from each county commissioners precinct in Live Oak County.
  One director is elected from the district at large. (Acts 71st Leg.,
  R.S., Ch. 715, Sec. 12(c) (part).)
         Sec. 8893.0053.  ELECTION OF DIRECTORS AFTER ANNEXATION.
  The board shall determine to which precinct annexed land will be
  added for purposes of election of directors. (Acts 71st Leg., R.S.,
  Ch. 715, Sec. 11.)
         Sec. 8893.0054.  ELECTION DATE. The district shall hold an
  election to elect the appropriate number of directors in each
  even-numbered year. (Acts 71st Leg., R.S., Ch. 715, Sec. 12(e).)
         Sec. 8893.0055.  QUALIFICATIONS FOR OFFICE. (a) To be
  qualified for election as a director, a person must be:
               (1)  a resident of the district; and
               (2)  at least 18 years of age.
         (b)  To represent a commissioner precinct, a person must be a
  resident of the precinct. (Acts 71st Leg., R.S., Ch. 715, Secs.
  12(b), (c) (part).)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8893.0101.  GENERAL POWERS AND DUTIES. The district
  has:
               (1)  the powers essential to accomplish the purposes of
  Section 59, Article XVI, Texas Constitution; and
               (2)  the rights, powers, duties, privileges, and
  functions provided by Chapter 36, Water Code, and other laws of this
  state relating to groundwater conservation districts. (Acts 71st
  Leg., R.S., Ch. 715, Secs. 1, 5.)
         Sec. 8893.0102.  ADMINISTRATIVE PROCEDURES. Except as
  otherwise provided by this chapter, the administrative and
  procedural provisions of Chapter 36, Water Code, apply to the
  district. (Acts 71st Leg., R.S., Ch. 715, Sec. 6.)
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8893.0151.  TAX AND BOND PROVISIONS. (a)  Except as
  provided by Subsection (b), the tax and bond provisions of
  Subchapters F and G, Chapter 36, Water Code, apply to the district.
         (b)  Notwithstanding Section 36.201(b), Water Code, the
  district may annually levy taxes to pay the maintenance and
  operating expenses of the district at a rate not to exceed five
  cents on each $100 of assessed valuation. (Acts 71st Leg., R.S., Ch. 715, Sec. 9.)
 
  CHAPTER 8894.  HEMPHILL COUNTY UNDERGROUND WATER CONSERVATION
  DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 8894.0001.  DEFINITIONS 
  Sec. 8894.0002.  NATURE OF DISTRICT 
  Sec. 8894.0003.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 8894.0004.  DISTRICT TERRITORY 
  SUBCHAPTER B. BOARD OF DIRECTORS
  Sec. 8894.0051.  COMPOSITION OF BOARD; TERMS 
  Sec. 8894.0052.  ELECTION DATE 
  SUBCHAPTER C. POWERS AND DUTIES
  Sec. 8894.0101.  GENERAL POWERS AND DUTIES 
  Sec. 8894.0102.  NO EMINENT DOMAIN POWER 
  CHAPTER 8894.  HEMPHILL COUNTY UNDERGROUND WATER CONSERVATION
  DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8894.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Hemphill County Underground
  Water Conservation District. (Acts 74th Leg., R.S., Ch. 157, Secs.
  1(a) (part), 2; New.)
         Sec. 8894.0002.  NATURE OF DISTRICT. The district is a
  groundwater conservation district in Hemphill County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution. (Acts 74th Leg., R.S., Ch. 157, Secs. 1(a)
  (part), (b).)
         Sec. 8894.0003.  FINDINGS OF PUBLIC USE AND BENEFIT. (a)
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the works and projects accomplished by the
  district under the powers conferred by Section 59, Article XVI,
  Texas Constitution. (Acts 74th Leg., R.S., Ch. 157, Sec. 4.)
         Sec. 8894.0004.  DISTRICT TERRITORY. The district's
  boundaries are coextensive with the boundaries of Hemphill County,
  unless the district's territory has been modified under:
               (1)  Subchapter J or K, Chapter 36, Water Code; or
               (2)  other law. (Acts 74th Leg., R.S., Ch. 157, Sec. 3;
  New.)
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8894.0051.  COMPOSITION OF BOARD; TERMS. (a) The
  district is governed by a board of five directors.
         (b)  Directors serve staggered four-year terms. (Acts 74th
  Leg., R.S., Ch. 157, Secs. 6(a), (d).)
         Sec. 8894.0052.  ELECTION DATE. The district shall hold an
  election to elect the appropriate number of directors on the
  uniform election date in May of each even-numbered year. (Acts 74th
  Leg., R.S., Ch. 157, Sec. 9; New.)
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8894.0101.  GENERAL POWERS AND DUTIES. Except as
  otherwise provided by Section 8894.0102, the district has the
  rights, powers, privileges, functions, and duties provided by the
  general law of this state, including Chapter 36, Water Code,
  applicable to groundwater conservation districts created under
  Section 59, Article XVI, Texas Constitution. (Acts 74th Leg., R.S.,
  Ch. 157, Sec. 5(a) (part).)
         Sec. 8894.0102.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain. (Acts 74th Leg., R.S.,
  Ch. 157, Sec. 5(a) (part).)
         SECTION 1.05.  WATER CONTROL AND IMPROVEMENT DISTRICTS.  
  Subtitle I, Title 6, Special District Local Laws Code, is amended by
  adding Chapters 9075, 9077, 9078, 9079, 9080, and 9083 to read as follows:
 
  CHAPTER 9075. FORT BEND COUNTY WATER CONTROL AND IMPROVEMENT
  DISTRICT NO. 2
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 9075.0001.  DEFINITION 
  Sec. 9075.0002.  FINDINGS OF PUBLIC USE AND BENEFIT 
  Sec. 9075.0003.  NATURE OF DISTRICT 
  Sec. 9075.0004.  DISTRICT TERRITORY 
  Sec. 9075.0005.  COST OF RELOCATING OR ALTERING
                    PROPERTY 
  SUBCHAPTER B. DEFINED AREA
  Sec. 9075.0051.  CREATION OF DEFINED AREA; DESIGNATION 
  Sec. 9075.0052.  INITIAL TERRITORY 
  Sec. 9075.0053.  EXCLUSION OF LAND 
  Sec. 9075.0054.  PROCEDURE FOR ELECTION 
  Sec. 9075.0055.  TAXES FOR SERVICES, IMPROVEMENTS, AND
                    FACILITIES 
  Sec. 9075.0056.  ISSUANCE OF BONDS 
  Sec. 9075.0057.  POWERS AND DUTIES 
  Sec. 9075.0058.  AUTHORITY FOR ROAD PROJECTS 
  Sec. 9075.0059.  ROAD STANDARDS AND REQUIREMENTS 
  Sec. 9075.0060.  IMPROVEMENT PROJECTS AND SERVICES 
  Sec. 9075.0061.  ELECTIONS REGARDING TAXES AND BONDS 
  Sec. 9075.0062.  OPERATION AND MAINTENANCE TAX 
  Sec. 9075.0063.  AUTHORITY TO BORROW MONEY AND TO ISSUE
                    BONDS AND OTHER OBLIGATIONS 
  Sec. 9075.0064.  TAXES FOR BONDS 
  CHAPTER 9075. FORT BEND COUNTY WATER CONTROL AND IMPROVEMENT
  DISTRICT NO. 2
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 9075.0001.  DEFINITION. In this chapter, "district"
  means the Fort Bend County Water Control and Improvement District
  No. 2 in Fort Bend County and Harris County. (Acts 57th Leg., R.S.,
  Ch. 312, Sec. 1 (part); Acts 61st Leg., R.S., Ch. 381, Sec. 1
  (part).)
         Sec. 9075.0002.  FINDINGS OF PUBLIC USE AND BENEFIT. (a)
  The district will serve a public use and benefit.
         (b)  All land and other property in the district will benefit
  from the district. (Acts 57th Leg., R.S., Ch. 312, Sec. 2; Acts
  61st Leg., R.S., Ch. 381, Sec. 3.)
         Sec. 9075.0003.  NATURE OF DISTRICT. The district is a
  conservation and reclamation district under Section 59, Article
  XVI, Texas Constitution. (Acts 61st Leg., R.S., Ch. 381, Sec. 1
  (part).)
         Sec. 9075.0004.  DISTRICT TERRITORY. The district is
  composed of the territory described by Section 1, Chapter 312, Acts
  of the 57th Legislature, Regular Session, 1961, as that territory
  may have been modified under:
               (1)  Subchapter J, Chapter 49, Water Code;
               (2)  Subchapter O, Chapter 51, Water Code; or
               (3)  other law. (Acts 57th Leg., R.S., Ch. 312, Sec. 1
  (part); New.)
         Sec. 9075.0005.  COST OF RELOCATING OR ALTERING PROPERTY.
  (a) In this section, "sole expense" means the actual cost of
  relocating, raising, lowering, rerouting, changing the grade of, or
  altering the construction of a facility described by Subsection (b)
  in providing comparable replacement without enhancement of the
  facility, after deducting from that cost the net salvage value
  derived from the old facility.
         (b)  If the district's exercise of the power of eminent
  domain, the power of relocation, or any other power granted by this
  chapter makes necessary relocating, raising, rerouting, changing
  the grade of, or altering the construction of a highway, railroad,
  electric transmission line, telephone or telegraph property or
  facility, or pipeline, the necessary action shall be accomplished
  at the sole expense of the district. (Acts 57th Leg., R.S., Ch. 312,
  Sec. 6.)
  SUBCHAPTER B. DEFINED AREA
         Sec. 9075.0051.  CREATION OF DEFINED AREA; DESIGNATION. (a)
  A defined area is created in the district.
         (b)  The defined area is designated to pay for improvements,
  facilities, or services that primarily benefit the defined area and
  do not generally benefit the district as a whole. (Acts 57th Leg.,
  R.S., Ch. 312, Sec. 9.)
         Sec. 9075.0052.  INITIAL TERRITORY. (a) The defined area is
  initially composed of the territory described by Section 2, Chapter
  669, Acts of the 84th Legislature, Regular Session, 2015.
         (b)  The boundaries and field notes contained in Section 2,
  Chapter 669, Acts of the 84th Legislature, Regular Session, 2015,
  form a closure. A mistake made in the field notes or in copying the
  field notes in the legislative process does not affect:
               (1)  the defined area's organization, existence, or
  validity;
               (2)  the district's right to issue any type of bond or
  obligation for the purposes for which the defined area is
  designated, including to pay the principal of and interest on a
  bond;
               (3)  the district's right to impose or collect a tax in
  the defined area; or
               (4)  the legality or operation of the defined area or
  the district. (Acts 57th Leg., R.S., Ch. 312, Sec. 10.)
         Sec. 9075.0053.  EXCLUSION OF LAND. Subject to the City of
  Stafford providing written consent by ordinance or resolution, the
  district may exclude land from the defined area in the same manner
  as the district may exclude land from the district. (Acts 57th Leg.,
  R.S., Ch. 312, Sec. 11.)
         Sec. 9075.0054.  PROCEDURE FOR ELECTION. (a) Before the
  district may impose an ad valorem tax or issue bonds payable from ad
  valorem taxes of the defined area, the governing body of the
  district must call and hold an election in the defined area only.
         (b)  The governing body of the district may submit the
  proposition to the voters on the same ballot to be used in another
  election. (Acts 57th Leg., R.S., Ch. 312, Sec. 12.)
         Sec. 9075.0055.  TAXES FOR SERVICES, IMPROVEMENTS, AND
  FACILITIES. On approval of the voters in the defined area, the
  district may apply separately, differently, equitably, and
  specifically its taxing power and lien authority to the defined
  area to provide money to construct, administer, maintain, and
  operate services, improvements, and facilities that primarily
  benefit the defined area. (Acts 57th Leg., R.S., Ch. 312, Sec. 13.)
         Sec. 9075.0056.  ISSUANCE OF BONDS. On approval of the
  voters in the defined area, the district may issue bonds to provide
  for any land, improvements, facilities, plants, equipment, and
  appliances for the defined area. (Acts 57th Leg., R.S., Ch. 312,
  Sec. 14.)
         Sec. 9075.0057.  POWERS AND DUTIES. (a) For the benefit of
  the defined area, the district has the powers and duties provided by
  the general law of this state necessary to accomplish the purposes
  of:
               (1)  Section 59, Article XVI, Texas Constitution;
               (2)  Section 52, Article III, Texas Constitution,
  applicable to the construction, acquisition, improvement,
  operation, or maintenance of macadamized, graveled, or paved roads,
  or improvements, including storm drainage, in aid of those roads;
  and
               (3)  except as provided by this chapter, Chapters 49
  and 51, Water Code, applicable to water control and improvement
  districts created under Section 59, Article XVI, Texas
  Constitution.
         (b)  Except as provided by Subsection (c), the governing body
  of the district shall administer the defined area as provided by
  Chapter 51, Water Code.
         (c)  Sections 51.518, 51.519, 51.520, 51.521, 51.522,
  51.523, 51.524, 51.526, 51.527, 51.528, and 51.529, Water Code, do
  not apply to the district. (Acts 57th Leg., R.S., Ch. 312, Sec.
  15.)
         Sec. 9075.0058.  AUTHORITY FOR ROAD PROJECTS. Under Section
  52, Article III, Texas Constitution, for the benefit of the defined
  area, the district may design, acquire, construct, finance, issue
  bonds for, improve, operate, maintain, and convey to this state, a
  county, or a municipality for operation and maintenance
  macadamized, graveled, or paved roads, or improvements, including
  storm drainage, in aid of those roads, including roads located
  outside the boundaries of the defined area that benefit the defined
  area. (Acts 57th Leg., R.S., Ch. 312, Sec. 16.)
         Sec. 9075.0059.  ROAD STANDARDS AND REQUIREMENTS. A road
  project must meet all applicable construction standards, zoning and
  subdivision requirements, and regulations of each municipality in
  whose corporate limits or extraterritorial jurisdiction the road
  project is located. (Acts 57th Leg., R.S., Ch. 312, Sec. 17.)
         Sec. 9075.0060.  IMPROVEMENT PROJECTS AND SERVICES. For the
  benefit of the defined area, the district may provide, design,
  construct, acquire, improve, relocate, operate, maintain, or
  finance an improvement project or service using any money available
  to the district, or contract with a governmental or private entity
  to provide, design, construct, acquire, improve, relocate,
  operate, maintain, or finance an improvement project or service
  authorized under this chapter. (Acts 57th Leg., R.S., Ch. 312, Sec.
  18.)
         Sec. 9075.0061.  ELECTIONS REGARDING TAXES AND BONDS. (a)
  For the benefit of the defined area, the district may issue, without
  an election, bonds, notes, and other obligations secured by revenue
  other than ad valorem taxes.
         (b)  The district must hold an election in the defined area
  to obtain approval of the voters of the defined area before the
  district may impose an ad valorem tax or issue bonds payable from ad
  valorem taxes in the defined area.
         (c)  An election under this section does not require that an
  election be held in the part of the district located outside the
  defined area.
         (d)  All or any part of any facilities or improvements that
  may be acquired by a district through the issuance of bonds may be
  submitted as a single proposition or as several propositions to be
  voted on at the election. (Acts 57th Leg., R.S., Ch. 312, Sec. 19.)
         Sec. 9075.0062.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized by a majority of the voters in the defined area voting at
  an election held in accordance with Section 9075.0061, the district
  may impose an operation and maintenance tax on taxable property in
  the defined area in accordance with Section 49.107, Water Code, for
  any district purpose, including to:
               (1)  maintain and operate the defined area;
               (2)  construct or acquire improvements; or
               (3)  provide a service.
         (b)  The governing body of the district shall determine the
  tax rate. The rate may not exceed the rate approved at the election
  described by Subsection (a).
         (c)  Section 49.107(h), Water Code, does not apply to the
  district. (Acts 57th Leg., R.S., Ch. 312, Sec. 20.)
         Sec. 9075.0063.  AUTHORITY TO BORROW MONEY AND TO ISSUE
  BONDS AND OTHER OBLIGATIONS. (a) For the benefit of the defined
  area, the district may borrow money on terms determined by the
  governing body of the district.
         (b)  The district may issue bonds, notes, or other
  obligations payable wholly or partly from ad valorem taxes, impact
  fees, revenue, grants, or other district money, or any combination
  of those sources of money from the defined area, to pay for any
  authorized district purpose.
         (c)  The limitation on the outstanding principal amount of
  bonds, notes, and other obligations provided by Section 49.4645,
  Water Code, does not apply to the district.
         (d)  The district must obtain approval from the Texas
  Commission on Environmental Quality as provided by Chapter 49,
  Water Code, before the district issues bonds to provide water,
  sewer, or drainage facilities for the benefit of the defined area.
  (Acts 57th Leg., R.S., Ch. 312, Sec. 21.)
         Sec. 9075.0064.  TAXES FOR BONDS. At the time the district
  issues bonds payable wholly or partly from ad valorem taxes from the
  defined area, the governing body of the district shall provide for
  the annual imposition of a continuing direct annual ad valorem tax,
  without limit as to rate or amount, for each year that all or part of
  the bonds are outstanding as required and in the manner provided by
  Sections 51.433 and 51.436, Water Code. (Acts 57th Leg., R.S., Ch. 312, Sec. 22.)
 
  CHAPTER 9077. BELL COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT
  NO. 5
  Sec. 9077.0001.  DEFINITION 
  Sec. 9077.0002.  EMINENT DOMAIN 
  CHAPTER 9077. BELL COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT
  NO. 5
         Sec. 9077.0001.  DEFINITION. In this chapter, "district"
  means the Bell County Water Control and Improvement District No. 5
  in Bell County. (Acts 56th Leg., R.S., Ch. 227, Sec. 1 (part); New.)
         Sec. 9077.0002.  EMINENT DOMAIN. (a)  The district may
  exercise the power of eminent domain to acquire real estate located
  in Bell County.
         (b)  The district must exercise the power of eminent domain
  in the manner provided by Chapter 21, Property Code.
         (c)  The district's authority under this section to exercise
  the power of eminent domain expired on September 1, 2013, unless the
  district submitted a letter to the comptroller in accordance with
  Section 2206.101(b), Government Code, not later than December 31, 2012. (Acts 56th Leg., R.S., Ch. 227, Sec. 1 (part); New.)
 
  CHAPTER 9078. FANNIN COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT
  NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
  Sec. 9078.0001.  DEFINITIONS 
  Sec. 9078.0002.  NATURE OF DISTRICT 
  Sec. 9078.0003.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT 
  Sec. 9078.0004.  DISTRICT TERRITORY 
  Sec. 9078.0005.  LIBERAL CONSTRUCTION OF CHAPTER 
  SUBCHAPTER B. POWERS AND DUTIES
  Sec. 9078.0051.  GENERAL POWERS AND DUTIES 
  Sec. 9078.0052.  WATER CONTROL AND IMPROVEMENT DISTRICT
                    POWERS 
  Sec. 9078.0053.  CONTROL OF WATER AND FLOODWATER;
                    RECLAMATION 
  Sec. 9078.0054.  COST OF RELOCATING OR ALTERING
                    PROPERTY 
  SUBCHAPTER C. TAXES
  Sec. 9078.0101.  IMPOSITION OF MAINTENANCE TAX;
                    ELECTION PROCEDURE 
  Sec. 9078.0102.  MAINTENANCE TAX RATE 
  Sec. 9078.0103.  TAX METHOD 
  SUBCHAPTER D. BONDS
  Sec. 9078.0151.  DEFINITION OF NET REVENUES 
  Sec. 9078.0152.  AUTHORITY TO ISSUE BONDS 
  Sec. 9078.0153.  SECURITY FOR REVENUE BONDS 
  Sec. 9078.0154.  BOND ELECTION REQUIRED 
  Sec. 9078.0155.  REFUNDING BONDS 
  CHAPTER 9078. FANNIN COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT
  NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 9078.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "District" means the Fannin County Water Control
  and Improvement District No. 1. (Acts 57th Leg., R.S., Ch. 65, Sec.
  1 (part); New.)
         Sec. 9078.0002.  NATURE OF DISTRICT. The district is a
  conservation and reclamation district in Fannin County established
  under Section 59, Article XVI, Texas Constitution. (Acts 57th Leg.,
  R.S., Ch. 65, Sec. 1 (part); Acts 58th Leg., R.S., Ch. 275, Secs. 1
  (part), 7 (part).)
         Sec. 9078.0003.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
  (a) The district is essential to the accomplishment of the
  preservation and conservation of the natural resources of the
  state.
         (b)  All land and property in the district will benefit from
  the improvements to be constructed, acquired, and operated by the
  district and from the preservation and conservation of the natural
  resources of the state.
         (c)  This chapter addresses a subject in which the state is
  interested. (Acts 58th Leg., R.S., Ch. 275, Secs. 3 (part), 7
  (part).)
         Sec. 9078.0004.  DISTRICT TERRITORY. The district is
  composed of the territory described by metes and bounds in the
  resolution and order of the commissioners court of Fannin County
  creating the district, recorded in Volume 1, page 3, of the Water
  Control Improvement District minutes of Fannin County, as that
  territory may have been modified under:
               (1)  Subchapter J, Chapter 49, Water Code;
               (2)  Subchapter O, Chapter 51, Water Code; or
               (3)  other law. (Acts 57th Leg., R.S., Ch. 65, Sec. 1
  (part); New.)
         Sec. 9078.0005.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed to effect its purposes. (Acts
  58th Leg., R.S., Ch. 275, Sec. 7 (part).)
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 9078.0051.  GENERAL POWERS AND DUTIES. The district
  may exercise the powers essential to the accomplishment of the
  purposes of Section 59, Article XVI, Texas Constitution, and may
  exercise the rights, powers, privileges, prerogatives, and
  functions enumerated in or implied by that section, including those
  listed in this subchapter. (Acts 57th Leg., R.S., Ch. 65, Sec. 2
  (part); Acts 58th Leg., R.S., Ch. 275, Sec. 1 (part); New.)
         Sec. 9078.0052.  WATER CONTROL AND IMPROVEMENT DISTRICT
  POWERS. The district has the rights, powers, privileges, and
  functions provided by general law applicable to a water control and
  improvement district including Chapters 49 and 51, Water Code,
  including the power to:
               (1)  construct, acquire, improve, maintain, and repair
  a dam or other structure; and
               (2)  acquire land, easements, properties, or equipment
  needed to use, control, and distribute water that may be impounded,
  diverted, or controlled by the district. (Acts 57th Leg., R.S., Ch.
  65, Sec. 2 (part); Acts 58th Leg., R.S., Ch. 275, Sec. 1 (part);
  New.)
         Sec. 9078.0053.  CONTROL OF WATER AND FLOODWATER;
  RECLAMATION. The district may:
               (1)  control, store, preserve, and distribute the water
  and floodwater in the district for the irrigation of arid land,
  conservation, preservation, reclamation, and drainage of land in
  the district;
               (2)  carry out flood prevention measures to prevent
  damage to land and property in the district; and
               (3)  reclaim lands damaged before April 10, 1961,
  because of the prior failure to provide the facilities authorized
  to be constructed under this chapter. (Acts 57th Leg., R.S., Ch. 65,
  Sec. 2 (part).)
         Sec. 9078.0054.  COST OF RELOCATING OR ALTERING PROPERTY.
  If the district's exercise of the power of eminent domain, the power
  of relocation, or any other power granted under this chapter makes
  necessary relocating, raising, rerouting, changing the grade of, or
  altering the construction of, a highway, railroad, electric
  transmission line, telephone or telegraph property or facility, or
  pipeline, the necessary action shall be accomplished at the
  district's sole expense. (Acts 57th Leg., R.S., Ch. 65, Sec. 2
  (part).)
  SUBCHAPTER C. TAXES
         Sec. 9078.0101.  IMPOSITION OF MAINTENANCE TAX; ELECTION
  PROCEDURE. (a) If approved by a majority of the voters of the
  district voting at an election called for that purpose, the
  district may impose a maintenance tax for the purposes of:
               (1)  maintaining structures;
               (2)  securing and purchasing land rights;
               (3)  purchasing rights-of-way, including moving
  utilities;
               (4)  administering contracts; and
               (5)  paying other general operating expenses.
         (b)  A maintenance tax election shall be called and notice
  given in the same manner as for a bond election and may be held
  simultaneously with a bond election.
         (c)  This chapter does not prevent the calling of a
  subsequent maintenance tax election to establish or increase the
  amount of tax if the board determines that a maintenance tax
  election is required. (Acts 57th Leg., R.S., Ch. 65, Sec. 3
  (part).)
         Sec. 9078.0102.  MAINTENANCE TAX RATE. In calling a
  maintenance tax election, the board must specify the maximum
  proposed tax rate. To impose a maintenance tax at a rate that
  exceeds the maximum rate approved by the voters, the board must
  submit the question of a tax rate increase to the voters. (Acts
  57th Leg., R.S., Ch. 65, Sec. 3 (part).)
         Sec. 9078.0103.  TAX METHOD. (a) The district shall use the
  ad valorem plan of taxation.
         (b)  The district is not required to conduct a hearing on the
  adoption of a plan of taxation. (Acts 58th Leg., R.S., Ch. 275,
  Sec. 4.)
  SUBCHAPTER D. BONDS
         Sec. 9078.0151.  DEFINITION OF NET REVENUES. In this
  subchapter, "net revenues" or "net operating revenues" means all
  income or increment from the ownership and operation of
  improvements and facilities operated by the district, minus the
  amount reasonably required to provide for the administration,
  efficient operation, and adequate maintenance of the improvements
  and facilities. The terms do not include money derived from
  taxation. (Acts 58th Leg., R.S., Ch. 275, Sec. 5 (part).)
         Sec. 9078.0152.  AUTHORITY TO ISSUE BONDS. (a) The district
  may issue bonds to:
               (1)  furnish land, easements, or permanent
  improvements to land or easements;
               (2)  provide dams, structures, projects, and works of
  improvement for flood prevention, including structural and land
  treatment measures, and for agricultural phases of the
  conservation, development, use, and disposal of water, and for
  necessary facilities and equipment in connection therewith and for
  the improvement, maintenance, and repair of the same; and
               (3)  exercise any other district power.
         (b)  Except as otherwise provided by this chapter, district
  bonds must be authorized by a board resolution.
         (c)  District bonds may be secured by and payable wholly
  from:
               (1)  ad valorem taxes;
               (2)  net operating revenues of the district, the net
  revenues of any contract made, or other revenues as specified in the
  resolution authorizing the issuance of the bonds; or
               (3)  any combination of ad valorem taxes and net
  revenues as determined by the board.
         (d)  In a resolution authorizing the issuance of bonds
  secured wholly or partly by district revenues, the board may
  reserve the right under conditions specified in the resolution to
  issue additional bonds on a parity with or subordinate to the bonds
  being issued. (Acts 57th Leg., R.S., Ch. 65, Sec. 3 (part); Acts
  58th Leg., R.S., Ch. 275, Sec. 5 (part); New.)
         Sec. 9078.0153.  SECURITY FOR REVENUE BONDS. For bonds
  authorized to be issued that are secured by and payable wholly or
  partly from net revenues, the board may mortgage and encumber:
               (1)  any part or all of the district's property and
  facilities acquired or to be acquired;
               (2)  a franchise of or revenues from the operation of
  the district's property and facilities acquired or to be acquired;
  and
               (3)  anything pertaining to the district's property and
  facilities acquired or to be acquired or the operation of the
  district's property or facilities. (Acts 58th Leg., R.S., Ch. 275,
  Sec. 5 (part).)
         Sec. 9078.0154.  BOND ELECTION REQUIRED. (a) Bonds, other
  than refunding bonds, may not be issued unless approved by the
  voters of the district as provided by general law.
         (b)  If a proposition submitted at an election is defeated,
  another election may be held in the district to vote on the same or a
  similar proposition at a time determined by the board.
         (c)  The board may call an election under this section
  without a petition. The resolution calling the election must
  specify:
               (1)  the time and place at which the election will be
  held;
               (2)  the purpose for which the bonds will be issued;
               (3)  the maximum maturity date and maximum interest