Relating to the nonsubstantive revision of certain local laws concerning water and wastewater special districts, including a conforming amendment.

89(R) HB 1615 - Enrolled version - Bill Text

H.B. No. 1615

AN ACT

relating to the nonsubstantive revision of certain local laws

concerning water and wastewater special districts, including a

conforming amendment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS

SECTION 1.01. NAVIGATION DISTRICT. Subtitle A, Title 5,

Special District Local Laws Code, is amended by adding Chapter 5008

to read as follows:

CHAPTER 5008. WILLACY COUNTY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5008.0101. DEFINITIONS

Sec. 5008.0102. FINDINGS OF PURPOSE

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 5008.0201. BOARD OF COMMISSIONERS; TERM

Sec. 5008.0202. ELECTION OF COMMISSIONERS

Sec. 5008.0203. PRESIDING OFFICER

Sec. 5008.0204. GENERAL MANAGER OR PORT DIRECTOR

SUBCHAPTER C. POWERS AND DUTIES

Sec. 5008.0301. AUTHORITY TO ACQUIRE AND LEASE LAND;

EMINENT DOMAIN

Sec. 5008.0302. AUTHORITY TO SELL LAND

Sec. 5008.0303. AUTHORITY TO LEASE OR GRANT EASEMENTS

FOR CERTAIN PURPOSES

Sec. 5008.0304. CONVEYANCE AND ACQUISITION OF CERTAIN

PROPERTY

Sec. 5008.0305. ENTRY ON PROPERTY

Sec. 5008.0306. POWERS REGARDING PUBLIC AIRPORTS

Sec. 5008.0307. LAW ENFORCEMENT AND SECURITY SERVICES

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 5008.0401. AD VALOREM TAX FOR MAINTENANCE AND

OPERATIONS

SUBCHAPTER E. BONDS

Sec. 5008.0501. APPLICABILITY OF SUBCHAPTER

Sec. 5008.0502. NOTICE OF ELECTION

Sec. 5008.0503. FORM OF BONDS

Sec. 5008.0504. TAXES FOR BONDS

CHAPTER 5008. WILLACY COUNTY NAVIGATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5008.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of navigation

and canal commissioners.

(2) "Commissioner" means a board member.

(3) "District" means the Willacy County Navigation

District. (Acts 53rd Leg., R.S., Ch. 404, Sec. 1A.)

Sec. 5008.0102. FINDINGS OF PURPOSE. The creation of the

district is essential to accomplish the purposes of Section 59,

Article XVI, Texas Constitution. (Acts 53rd Leg., R.S., Ch. 404,

Sec. 8 (part).)

SUBCHAPTER B. DISTRICT ADMINISTRATION

Sec. 5008.0201. BOARD OF COMMISSIONERS; TERM. (a) The

board consists of five elected commissioners.

(b) Commissioners serve staggered four-year terms. (Acts

53rd Leg., R.S., Ch. 404, Secs. 1B(c) (part), (d).)

Sec. 5008.0202. ELECTION OF COMMISSIONERS. (a) The

district is divided into four numbered single-member districts for

electing commissioners.

(b) The board may revise the single-member districts as

necessary or appropriate.

(c) One commissioner is elected from each single-member

district, and one commissioner is elected from the district at

large.

(d) The board shall hold an election on the uniform election

date in November of each even-numbered year to elect the

appropriate number of commissioners. (Acts 53rd Leg., R.S., Ch.

404, Secs. 1B(a), (b), (c) (part), 1C.)

Sec. 5008.0203. PRESIDING OFFICER. The commissioner

elected from the district at large serves as the board's presiding

officer. (Acts 53rd Leg., R.S., Ch. 404, Sec. 1B(e).)

Sec. 5008.0204. GENERAL MANAGER OR PORT DIRECTOR. (a) The

board may:

(1) employ a general manager or port director; and

(2) give the manager or director full administrative

authority to manage and operate the district's affairs, subject

only to the board's supervision.

(b) The board shall set the term of office and compensation

of the general manager or port director. (Acts 53rd Leg., R.S., Ch.

404, Sec. 6.)

SUBCHAPTER C. POWERS AND DUTIES

Sec. 5008.0301. AUTHORITY TO ACQUIRE AND LEASE LAND;

EMINENT DOMAIN. (a) The district may own land adjacent or

accessible to the navigable water in the district, whether acquired

by gift, purchase, or exercise of the power of eminent domain.

(b) The district may:

(1) lease all or any part of land the district owns for

any term the board considers prudent or advisable to:

(A) an individual;

(B) a corporation; or

(C) a government or governmental agency,

including this state or the United States; and

(2) charge a reasonable toll, fee, rent, or other

charge for the lease.

(c) This section does not prevent the district from granting

a revocable license or permit for the use of a limited portion of a

waterfront facility or land the district owns for a purpose

consistent with the development of the district's property.

(d) 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. 404, Sec. 1 (part); Acts 55th

Leg., R.S., Ch. 141, Sec. 1 (part); New.)

Sec. 5008.0302. AUTHORITY TO SELL LAND. The district may

sell any part of land the district owns to any government or

governmental agency, including this state or the United States, for

any amount of money the board considers prudent and advisable if the

board considers the sale necessary and advisable for the proper

development of the port. (Acts 55th Leg., R.S., Ch. 141, Sec. 2.)

Sec. 5008.0303. AUTHORITY TO LEASE OR GRANT EASEMENTS FOR

CERTAIN PURPOSES. The district may, for causeway, road, or public

utility purposes, lease, or grant an easement over or along, any

real property the district owns or holds in fee simple or by patent,

easement, or otherwise to:

(1) an individual;

(2) a corporation; or

(3) a government or governmental entity, including

this state or the United States. (Acts 55th Leg., R.S., Ch. 141,

Sec. 1a.)

Sec. 5008.0304. CONVEYANCE AND ACQUISITION OF CERTAIN

PROPERTY. (a) This section applies only to property, including

land or an interest in land, that:

(1) the district owns;

(2) the United States desires to enable a United

States department or establishment to carry out the provisions of

an act of Congress in aid of navigation, flood control, or

improvement of water courses in aid of navigation; and

(3) may be necessary for the construction, operation,

and maintenance of works required for a purpose described by

Subdivision (2).

(b) The district may:

(1) on the request of the United States, convey title

or an easement to property, including land or an interest in land,

to the United States with or without monetary consideration; and

(2) acquire land or a right-of-way necessary to carry

out the provisions or meet the conditions of an act of Congress

described by Subsection (a). (Acts 53rd Leg., R.S., Ch. 404, Sec.

2.)

Sec. 5008.0305. ENTRY ON PROPERTY. District commissioners,

engineers, and employees may enter any land in the district to

attend to any district business, including to examine the land and

to make plans, surveys, maps, and profiles for improvements

contemplated by the district. (Acts 53rd Leg., R.S., Ch. 404, Sec.

3.)

Sec. 5008.0306. POWERS REGARDING PUBLIC AIRPORTS. (a) The

district, in carrying out the district's powers and functions under

the constitution and statutes of this state, may:

(1) plan, acquire, own, control, protect, develop,

maintain, and operate, or arrange by lease or contract for the

operation of, a public airport; and

(2) exercise for a purpose described by Subdivision

(1) any powers granted to the district for other port purposes.

(b) The district may:

(1) enter into grant agreements with the United States

to obtain federal grant-in-aid money for public airport purposes;

and

(2) accept, receive, disburse, and spend the money for

the purposes, and in accordance with the time and conditions,

provided by the applicable grant agreements. (Acts 56th Leg.,

R.S., Ch. 392, Secs. 1, 2.)

Sec. 5008.0307. LAW ENFORCEMENT AND SECURITY SERVICES. The

board may:

(1) employ and set the compensation of security

personnel to protect the district's property; or

(2) pay all or a part of the compensation of a deputy

sheriff of Willacy County or a deputy constable of any precinct in

which the district owns navigation facilities for special services

provided to the district in policing the district's property and

enforcing state laws in the district's territory. (Acts 53rd Leg.,

R.S., Ch. 404, Sec. 7.)

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 5008.0401. AD VALOREM TAX FOR MAINTENANCE AND

OPERATIONS. (a) The board may impose an ad valorem tax at a rate

not to exceed 20 cents on each $100 valuation of taxable property in

the district for the maintenance and operation of the district and

the district's properties.

(b) The tax at its authorized rate must be imposed in the

manner prescribed for bond taxes under Subchapter E, subject to the

limit prescribed by Subsection (a). (Acts 53rd Leg., R.S., Ch. 404,

Sec. 5 (part).)

SUBCHAPTER E. BONDS

Sec. 5008.0501. APPLICABILITY OF SUBCHAPTER. This

subchapter applies only to bonds payable from both ad valorem taxes

and district revenue. (New.)

Sec. 5008.0502. NOTICE OF ELECTION. (a) Instead of any

other notice required by law, notice of an election to issue bonds

must be published once a week for two consecutive weeks in a

newspaper of general circulation in the district and must state:

(1) the date of the election;

(2) the place at which the election will be held; and

(3) the proposition to be voted on at the election.

(b) The first publication under Subsection (a) must be at

least 14 days before the date of the election. (Acts 53rd Leg.,

R.S., Ch. 404, Sec. 4 (part).)

Sec. 5008.0503. FORM OF BONDS. Bonds authorized at an

election must be:

(1) issued by board order; and

(2) signed by the board's presiding officer and

secretary. (Acts 53rd Leg., R.S., Ch. 404, Sec. 4 (part).)

Sec. 5008.0504. TAXES FOR BONDS. (a) If bonds are issued,

the board shall impose an ad valorem tax on all taxable property in

the district in each year during which the bonds are outstanding and

unpaid.

(b) The board shall impose the tax at the rate necessary to

generate an amount of revenue which, together with the net revenue

in the interest and sinking fund for the bonds at that time, is

sufficient to pay the principal of and interest on the bonds that

will be due during the next fiscal year.

(c) The board shall certify to the Willacy County tax

assessor-collector the rate of the tax imposed for the bonds.

(d) The Willacy County tax assessor-collector shall:

(1) collect the bond taxes in the same manner provided

by law for the collection of other district taxes; and

(2) remit all taxes collected to:

(A) the county treasurer of Willacy County; or

(B) the district's account. (Acts 53rd Leg.,

R.S., Ch. 404, Sec. 4 (part).)

SECTION 1.02. RIVER AUTHORITIES. Subtitle G, Title 6,

Special District Local Laws Code, is amended by adding Chapters

8512 and 8515 to read as follows:

CHAPTER 8512. GUADALUPE-BLANCO RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8512.0101. DEFINITIONS

Sec. 8512.0102. CREATION AND NATURE OF AUTHORITY

Sec. 8512.0103. REVIEW SCHEDULE UNDER SUNSET ACT

Sec. 8512.0104. TERRITORY

Sec. 8512.0105. LIBERAL CONSTRUCTION OF CHAPTER

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8512.0201. NATURE OF BOARD

Sec. 8512.0202. MEMBERSHIP OF BOARD

Sec. 8512.0203. TERMS

Sec. 8512.0204. REMOVAL

Sec. 8512.0205. VACANCY

Sec. 8512.0206. VOTING REQUIREMENT

Sec. 8512.0207. OFFICERS, AGENTS, AND EMPLOYEES

Sec. 8512.0208. SURETY BONDS

Sec. 8512.0209. AUTHORITY'S DOMICILE AND OFFICE

Sec. 8512.0210. DIRECTOR TRAINING PROGRAM

Sec. 8512.0211. SEPARATION OF POLICYMAKING AND

MANAGEMENT FUNCTIONS

Sec. 8512.0212. COMPLAINTS

Sec. 8512.0213. ALTERNATIVE DISPUTE RESOLUTION

PROCEDURES

Sec. 8512.0214. PUBLIC TESTIMONY

Sec. 8512.0215. SEAL

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8512.0301. GENERAL POWERS

Sec. 8512.0302. POWERS RELATED TO WATER OF RIVERS AND

STREAMS

Sec. 8512.0303. POWERS RELATED TO GROUNDWATER

Sec. 8512.0304. ACQUISITION OF WATER, WATER SUPPLY

FACILITIES, AND CONSERVATION STORAGE

CAPACITY

Sec. 8512.0305. USE, DISTRIBUTION, AND SALE OF WATER

OUTSIDE AUTHORITY

Sec. 8512.0306. DEVELOPMENT, GENERATION, DISTRIBUTION,

AND SALE OF WATER POWER AND ELECTRIC

ENERGY

Sec. 8512.0307. PREVENTION OF DAMAGE TO PERSONS OR

PROPERTY

Sec. 8512.0308. FORESTATION AND REFORESTATION;

PREVENTION OF SOIL EROSION AND

FLOODS

Sec. 8512.0309. DEVELOPMENT OF NAVIGATION AND RELATED

FACILITIES

Sec. 8512.0310. DEVELOPMENT OF RECLAMATION AND

DRAINAGE OF CERTAIN LAND AND RELATED

FACILITIES

Sec. 8512.0311. WASTE MANAGEMENT

Sec. 8512.0312. CONSERVATION AND DEVELOPMENT FOR

RECREATION

Sec. 8512.0313. ACQUISITION OR OPERATION OF PROPERTY

Sec. 8512.0314. EMINENT DOMAIN

Sec. 8512.0315. SALE, LEASE, OR OTHER DISPOSITION OF

PROPERTY

Sec. 8512.0316. OVERFLOW OR INUNDATION OF PUBLIC

PROPERTY; RELOCATION OF FACILITIES

Sec. 8512.0317. CONSTRUCTION, MAINTENANCE, AND

OPERATION OF FACILITIES

Sec. 8512.0318. GENERAL CONTRACT POWERS

Sec. 8512.0319. JOINT PROJECTS RELATED TO PROPERTY

Sec. 8512.0320. STATE SUPERVISION AND APPROVAL

Sec. 8512.0321. ADDITIONAL POWERS RELATING TO

CONTRACTS, RULES, AND REGULATIONS

Sec. 8512.0322. PUBLIC USE OF AUTHORITY'S SURPLUS LAND

Sec. 8512.0323. EFFECT OF CHAPTER ON WATER RIGHTS AND

GROUNDWATER REGULATION

Sec. 8512.0324. APPLICABILITY OF CERTAIN STATUTES

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8512.0401. DISBURSEMENT OF MONEY

Sec. 8512.0402. ACCOUNTS, CONTRACTS, AND OTHER

RECORDS; PUBLIC INSPECTION

Sec. 8512.0403. FILING OF AUDIT REPORT

Sec. 8512.0404. ASSET MANAGEMENT PLAN

Sec. 8512.0405. RATES AND OTHER CHARGES

Sec. 8512.0406. USE OF EXCESS REVENUE

Sec. 8512.0407. PAYMENTS UNDER AGREEMENTS FOR USE OR

SALE OF PROPERTY

Sec. 8512.0408. TAX, ASSESSMENT, OR PLEDGE OF CREDIT

OF STATE NOT AUTHORIZED BY CHAPTER

SUBCHAPTER E. BORROWED MONEY AND GRANTS

Sec. 8512.0501. LOANS AND GRANTS

Sec. 8512.0502. STATE PLEDGE REGARDING RIGHTS AND

REMEDIES OF BONDHOLDERS

Sec. 8512.0503. OBLIGATION PAYABLE FROM REVENUE

Sec. 8512.0504. POWER TO ISSUE BONDS

Sec. 8512.0505. TERMS OF ISSUANCE

Sec. 8512.0506. DEPOSIT OF PROCEEDS

Sec. 8512.0507. RESOLUTION PROVISIONS

Sec. 8512.0508. DEFAULT PROCEDURES

Sec. 8512.0509. INTERIM BONDS

Sec. 8512.0510. TEMPORARY BONDS

Sec. 8512.0511. REFUNDING BONDS

Sec. 8512.0512. POWER OF AUTHORITY TO PURCHASE BONDS

ISSUED BY AUTHORITY

Sec. 8512.0513. BONDS EXEMPT FROM TAXATION

CHAPTER 8512. GUADALUPE-BLANCO RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8512.0101. DEFINITIONS. In this chapter:

(1) "Authority" means the Guadalupe-Blanco River

Authority.

(2) "Board" means the authority's board of directors.

(3) "Bond" means a bond or note.

(4) "Commission" means the Texas Commission on

Environmental Quality.

(5) "Director" means a board member. (Acts 43rd Leg.,

1st C.S., Ch. 75, Secs. 1 (part), 4(a) (part), 11 (part); New.)

Sec. 8512.0102. CREATION AND NATURE OF AUTHORITY. (a) The

authority is a conservation and reclamation district.

(b) The authority's creation is essential to the

accomplishment of the purposes of Section 59, Article XVI, Texas

Constitution. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 1 (part).)

Sec. 8512.0103. 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, 2031, and every 12th year after that year.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 1A(a) (part).)

Sec. 8512.0104. TERRITORY. (a) The authority is composed

of the territory described by Subsection (b) as that territory may

have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The authority's territory consists of that part of this

state included in Caldwell, Calhoun, Comal, DeWitt, Guadalupe,

Gonzales, Hays, Kendall, Refugio, and Victoria Counties. (Acts 43rd

Leg., 1st C.S., Ch. 75, Sec. 1 (part); New.)

Sec. 8512.0105. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed to effectuate the chapter's

purposes. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 18.)

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8512.0201. NATURE OF BOARD. The board is a state board

of a state agency as contemplated by Section 30a, Article XVI, Texas

Constitution. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a) (part).)

Sec. 8512.0202. MEMBERSHIP OF BOARD. (a) The board

consists of nine directors appointed by the governor with the

advice and consent of the senate from a list of nominations provided

to the governor by the commission.

(b) Each director must:

(1) be a freehold property tax payer of this state; and

(2) reside in one of the counties included in the

authority.

(c) Only one director may be appointed from any county.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a) (part).)

Sec. 8512.0203. TERMS. Directors serve staggered six-year

terms, with three directors' terms expiring February 1 of each

odd-numbered year. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a)

(part).)

Sec. 8512.0204. REMOVAL. The governor may remove a

director for inefficiency, neglect of duty, or misconduct in

office, after:

(1) at least 10 days' written notice of the charge

against the director; and

(2) an opportunity for the director to be heard in

person or by counsel at a public hearing. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 4(a) (part).)

Sec. 8512.0205. VACANCY. The governor shall fill a vacancy

on the board for the unexpired term. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 4(a) (part).)

Sec. 8512.0206. VOTING REQUIREMENT. (a) Except as provided

by this chapter or the bylaws, the board may take action by the

affirmative vote of a majority of the directors present at a

meeting.

(b) The following are valid only if authorized or ratified

by the affirmative vote of at least five directors:

(1) a contract that involves an amount greater than

$100,000 or has a duration of more than one year;

(2) a bond or other evidence of indebtedness; or

(3) an amendment of the bylaws. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 4(b) (part).)

Sec. 8512.0207. OFFICERS, AGENTS, AND EMPLOYEES. (a) The

governor shall designate a director as the board's presiding

officer, who serves at the will of the governor.

(b) The board shall select a secretary, a general manager,

and a treasurer.

(c) The secretary shall keep accurate and complete records

of all board proceedings.

(d) Until the board selects a secretary, or if the secretary

is absent or unable to act, the board shall select a secretary pro

tem.

(e) The general manager is the authority's chief executive

officer.

(f) The secretary, secretary pro tem, general manager, and

treasurer have the powers and duties, hold office for the term, and

are subject to removal in the manner provided by the bylaws.

(g) The board shall set the compensation of the secretary,

secretary pro tem, general manager, and treasurer.

(h) The board may appoint other officers, agents, and

employees, set their compensation and term of office, prescribe

their duties and the method by which they may be removed, and

delegate to them any of the board's powers and duties as the board

considers proper. (Acts 43rd Leg., 1st C.S., Ch. 75, Secs. 2(u),

5.)

Sec. 8512.0208. SURETY BONDS. (a) The general manager, the

treasurer, and any other authority officer, agent, or employee who

is charged with the collection, custody, or payment of authority

money shall give bond conditioned on:

(1) the faithful performance of the person's duties;

and

(2) an accounting for all authority money and property

coming into the person's possession.

(b) The bond must be in a form and amount and with a surety

company approved by the board that is authorized to do business in

this state.

(c) The authority shall pay the premium on the bond and

charge the premium as an operating expense. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 6 (part).)

Sec. 8512.0209. AUTHORITY'S DOMICILE AND OFFICE. (a) The

authority's domicile is in the city of New Braunfels, Comal County.

(b) The authority shall maintain an office in the city of

New Braunfels, Comal County.

(c) The general manager is in charge of the authority's

office. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 7 (part).)

Sec. 8512.0210. 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 results of the authority's most recent formal

audit;

(4) the requirements of:

(A) laws relating to open meetings, public

information, administrative procedure, and the disclosure of

conflicts of interest; and

(B) other laws applicable to members of a river

authority's governing body in performing their duties; and

(5) any applicable ethics policies adopted by the

authority 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 general manager shall create a training manual that

includes the information required by Subsection (b). The general

manager shall distribute a copy of the training manual annually to

each director. Each director shall sign and submit to the general

manager a statement acknowledging that the director has received

and reviewed the training manual. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 4A.)

Sec. 8512.0211. SEPARATION OF POLICYMAKING AND MANAGEMENT

FUNCTIONS. The board shall develop and implement policies that

clearly separate the board's policymaking responsibilities and the

general manager's and staff's management responsibilities. (Acts

43rd Leg., 1st C.S., Ch. 75, Sec. 5A.)

Sec. 8512.0212. COMPLAINTS. (a) The authority shall

maintain a system to promptly and efficiently act on complaints

filed with the authority.

(b) The authority shall maintain information about the

parties to and subject matter of the complaint, a summary of the

results of the review or investigation of the complaint, and the

disposition of the complaint.

(c) The authority shall periodically notify the parties to

the complaint of the complaint's status until final disposition.

(d) The authority shall make information available

describing the authority's procedures for complaint investigation

and resolution. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 25.)

Sec. 8512.0213. ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.

(a) The board shall develop a policy to encourage the use of

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 alternative dispute resolution; and

(3) collect data concerning the effectiveness of those

procedures. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 23.)

Sec. 8512.0214. PUBLIC TESTIMONY. (a) 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 issue under the authority's jurisdiction.

(b) At each regular board meeting, the board shall include

public testimony as a meeting agenda item and allow members of the

public to comment on other agenda items and other matters under the

authority's jurisdiction. The board may not deliberate on or

decide a matter not included in the meeting agenda, except that the

board may discuss including the matter on the agenda for a

subsequent meeting. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 24.)

Sec. 8512.0215. SEAL. The authority may adopt and use a

corporate seal. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(r).)

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8512.0301. GENERAL POWERS. The authority 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 on any district, other than a groundwater

conservation district, created under Section 59, Article XVI, Texas

Constitution, except as expressly limited by this chapter. (Acts

43rd Leg., 1st C.S., Ch. 75, Secs. 1 (part), 2 (part).)

Sec. 8512.0302. POWERS RELATED TO WATER OF RIVERS AND

STREAMS. The authority may:

(1) control, store, and preserve, in or adjoining the

authority's boundaries, the water of any rivers and streams,

including the Guadalupe and Blanco Rivers and their tributaries,

for all useful purposes; and

(2) use, distribute, and sell the water described by

Subdivision (1), in the authority, for all useful purposes. (Acts

43rd Leg., 1st C.S., Ch. 75, Sec. 2(a).)

Sec. 8512.0303. POWERS RELATED TO GROUNDWATER. The

authority may:

(1) conserve, preserve, and develop groundwater in the

authority, subject to any applicable regulation by this state or

any political subdivision, for all useful purposes; and

(2) use, distribute, and sell groundwater, in the

authority, for all useful purposes. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 2(b).)

Sec. 8512.0304. ACQUISITION OF WATER, WATER SUPPLY

FACILITIES, AND CONSERVATION STORAGE CAPACITY. The authority may

acquire water, water supply facilities, and conservation storage

capacity inside or outside the authority from any person. (Acts

43rd Leg., 1st C.S., Ch. 75, Sec. 2(c).)

Sec. 8512.0305. USE, DISTRIBUTION, AND SALE OF WATER

OUTSIDE AUTHORITY. (a) The authority may use, distribute, and

sell, outside the authority, any water the authority controls,

stores, preserves, conserves, develops, or acquires if the board

determines that adequate provision can be made to continue to serve

the water requirements inside the authority.

(b) Notwithstanding Subsection (a), the authority may not

enter into any agreement that contemplates or results in the

removal from the watershed of the Guadalupe and Blanco Rivers and

their tributaries of any surface water of the authority necessary

to supply the reasonably foreseeable future water requirements for

municipal uses inside the watershed during the next 50 years,

except on a temporary, interim basis. (Acts 43rd Leg., 1st C.S.,

Ch. 75, Sec. 2(d).)

Sec. 8512.0306. DEVELOPMENT, GENERATION, DISTRIBUTION, AND

SALE OF WATER POWER AND ELECTRIC ENERGY. The authority may:

(1) develop and generate water power and electric

energy inside the authority; and

(2) distribute and sell water power and electric

energy inside or outside the authority. (Acts 43rd Leg., 1st C.S.,

Ch. 75, Sec. 2(e).)

Sec. 8512.0307. PREVENTION OF DAMAGE TO PERSONS OR

PROPERTY. The authority may prevent or aid in the prevention of

damage to persons or property from the water of the Guadalupe and

Blanco Rivers and their tributaries. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 2(f).)

Sec. 8512.0308. FORESTATION AND REFORESTATION; PREVENTION

OF SOIL EROSION AND FLOODS. In the watershed of the Guadalupe and

Blanco Rivers and their tributaries, the authority may:

(1) forest, reforest, or aid in foresting or

reforesting; and

(2) prevent or aid in the prevention of soil erosion

and floods. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(g).)

Sec. 8512.0309. DEVELOPMENT OF NAVIGATION AND RELATED

FACILITIES. The authority may develop the navigation of inland

water in the authority and any facility in aid of that navigation.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(h).)

Sec. 8512.0310. DEVELOPMENT OF RECLAMATION AND DRAINAGE OF

CERTAIN LAND AND RELATED FACILITIES. The authority may develop the

reclamation and drainage of overflowed land and other land needing

drainage, other than coastal wetlands or inland marshes, in the

authority and any facility in aid of that reclamation and drainage.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(i).)

Sec. 8512.0311. WASTE MANAGEMENT. (a) The authority may

develop the collection, transportation, treatment, disposal, and

handling of any waste, as that term is defined by general law, and

any facility in aid of those activities.

(b) The authority may construct or acquire sanitary sewer

facilities for the collection, treatment, and disposal of sewage in

a municipality's boundaries only with the municipality's consent.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(j).)

Sec. 8512.0312. CONSERVATION AND DEVELOPMENT FOR

RECREATION. The authority may conserve and develop water and land

for recreational purposes and any facility in aid of those

purposes. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(k).)

Sec. 8512.0313. ACQUISITION OR OPERATION OF PROPERTY. (a)

The authority may acquire, maintain, use, and operate property of

any kind or any property interest, inside or outside the authority,

necessary or convenient to the exercise of the powers, rights,

privileges, and functions conferred on the authority by this

chapter.

(b) The authority may acquire property or a property

interest as provided by Subsection (a) by purchase, lease, gift, or

any other manner, other than by the exercise of the power of eminent

domain. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(l).)

Sec. 8512.0314. EMINENT DOMAIN. (a) The authority may

acquire by the exercise of the power of eminent domain property of

any kind or a property interest inside or outside the authority that

is necessary or convenient to the exercise of the powers, rights,

privileges, and functions conferred on the authority by this

chapter.

(b) The authority must exercise the power of eminent domain

in the manner provided by:

(1) Chapter 21, Property Code; or

(2) the statutes relating to the exercise of the power

of eminent domain by districts organized under general law under

Section 59, Article XVI, Texas Constitution.

(c) The authority may not exercise the power of eminent

domain to acquire property or a property interest that is:

(1) located outside the authority; and

(2) owned by a body politic.

(d) 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 43rd Leg., 1st C.S., Ch. 75, Sec.

2(m); New.)

Sec. 8512.0315. SALE, LEASE, OR OTHER DISPOSITION OF

PROPERTY. Subject to the provisions of this chapter, the authority

may sell, lease, or otherwise dispose of property of any kind or any

property interest:

(1) that is not necessary authority business; or

(2) the sale, lease, or disposition of which, in the

board's judgment, is necessary or convenient to the exercise of the

powers, rights, privileges, and functions conferred on the

authority by this chapter or general law. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 2(n).)

Sec. 8512.0316. OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;

RELOCATION OF FACILITIES. (a) In this section, "sole expense"

means the actual cost of relocating, raising, lowering, rerouting,

or changing the grade of or altering the construction of a facility

to provide comparable replacement without enhancement of the

facility, after deducting the net salvage value derived from the

old facility.

(b) The authority may overflow and inundate any public

property and require the relocation of a road, pipeline,

transmission line, railroad, cemetery, or highway in the manner and

to the extent permitted to a district organized under general law

under Section 59, Article XVI, Texas Constitution.

(c) If in the exercise of the power of eminent domain or any

other power the authority requires relocating, raising, lowering,

rerouting, or changing the grade of or altering the construction of

any railroad, transmission line, conduit, pole, property,

facility, or pipeline, the action shall be the authority's sole

expense. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(o).)

Sec. 8512.0317. CONSTRUCTION, MAINTENANCE, AND OPERATION

OF FACILITIES. The authority may construct, extend, improve,

maintain, reconstruct, and use and operate facilities of any kind

necessary or convenient to the exercise of the authority's powers,

rights, privileges, and functions. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 2(p).)

Sec. 8512.0318. GENERAL CONTRACT POWERS. (a) The

authority may enter into a contract or execute an instrument

necessary or convenient to the exercise of the powers, rights,

privileges, and functions conferred on the authority by this

chapter or general law, including a contract with any person as the

board considers necessary or proper for, or in connection with, any

corporate purpose to provide for the construction, acquisition,

ownership, financing, operation, maintenance, sale, leasing to or

from, or other use or disposition of any facility authorized to be

developed, preserved, conserved, acquired, or constructed under

this chapter or general law.

(b) The power to enter into a contract regarding a facility

under Subsection (a) includes the power to enter into a contract

regarding:

(1) any improvements, structures, facilities,

equipment, and other property of any kind in connection with the

contract's subject;

(2) any land, leaseholds, and easements; and

(3) any interests in property described by this

subsection.

(c) A contract entered into or instrument executed under

this section may be for the term and contain the provisions the

board determines to be in the authority's best interests. (Acts

43rd Leg., 1st C.S., Ch. 75, Sec. 2(v).)

Sec. 8512.0319. JOINT PROJECTS RELATED TO PROPERTY. The

authority may:

(1) authorize any person to participate with the

authority in the joint construction, acquisition, ownership,

financing, operation, and maintenance of improvements, structures,

facilities, equipment, and any other property in connection with

the subject of the authorization, and all land, leaseholds,

easements, and interests in the property that the board determines

to be necessary or proper for, or in connection with, any corporate

purpose; and

(2) allow a joint participant to receive the portion

of the revenue derived from the property that the board considers

just, equitable, and proper. (Acts 43rd Leg., 1st C.S., Ch. 75,

Sec. 2(w).)

Sec. 8512.0320. STATE SUPERVISION AND APPROVAL. The

commission shall consider the adequacy of, and approve or refuse to

approve, any flood control or conservation improvement plan that:

(1) the authority devises to achieve a plan or purpose

for which the authority was created; and

(2) contemplates an improvement that the commission

would supervise under general law. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 3 (part).)

Sec. 8512.0321. ADDITIONAL POWERS RELATING TO CONTRACTS,

RULES, AND REGULATIONS. The authority may enter into and carry out

contracts or establish or comply with rules and regulations

concerning labor and materials and other related matters in

connection with any project the authority considers desirable or as

requested by this state, the United States, or any corporation or

agency created, designated, or established by this state or the

United States, that may assist in financing the project. (Acts 43rd

Leg., 1st C.S., Ch. 75, Sec. 13.)

Sec. 8512.0322. PUBLIC USE OF AUTHORITY'S SURPLUS LAND.

The authority may not prevent free public use of the authority's

surplus land for recreational purposes, hunting, or fishing except

to the extent to which, in the board's opinion, the use would

interfere with the proper conduct of the business. (Acts 43rd Leg.,

1st C.S., Ch. 75, Sec. 15.)

Sec. 8512.0323. EFFECT OF CHAPTER ON WATER RIGHTS AND

GROUNDWATER REGULATION. (a) This chapter does not confer any water

rights on the authority or set any priority of rights. The

authority must obtain its water rights by application to and permit

from the commission as provided by general statute.

(b) This chapter does not authorize the authority to

regulate the withdrawal of groundwater. (Acts 43rd Leg., 1st C.S.,

Ch. 75, Sec. 2(y) (part).)

Sec. 8512.0324. APPLICABILITY OF CERTAIN STATUTES. The

rights, powers, privileges, and functions granted to the authority

under this chapter, and the authority itself, are expressly subject

to Chapters 5, 7, 11, 12, 17, 26, and 30, Water Code, and Chapter

366, Health and Safety Code. (Acts 43rd Leg., 1st C.S., Ch. 75,

Sec. 2(y) (part).)

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8512.0401. DISBURSEMENT OF MONEY. The authority may

disburse the authority's money only by a check, draft, order, or

other instrument signed by a person authorized to sign the

instrument by the bylaws or a resolution in which at least five

directors concur. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 6

(part).)

Sec. 8512.0402. ACCOUNTS, CONTRACTS, AND OTHER RECORDS;

PUBLIC INSPECTION. (a) The authority shall keep complete and

accurate accounts conforming to approved methods of bookkeeping.

(b) The accounts and all contracts, documents, and records

of the authority shall be kept at an official authority office.

(c) The contracts shall be open to public inspection at all

reasonable times. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 7

(part).)

Sec. 8512.0403. FILING OF AUDIT REPORT. Copies of the audit

report prepared under Subchapter G, Chapter 49, Water Code, shall

be certified to by the accountant who performed the audit and filed:

(1) as required by Section 49.194, Water Code; and

(2) with the comptroller. (Acts 43rd Leg., 1st C.S.,

Ch. 75, Sec. 7 (part); New.)

Sec. 8512.0404. ASSET MANAGEMENT PLAN. (a) In this

section, "system" means a system for the:

(1) provision of water to the public for human

consumption; or

(2) collection and treatment of wastewater.

(b) The authority shall adopt an asset management plan by:

(1) preparing an asset inventory that identifies the

assets of each system and the asset's condition;

(2) developing criteria to prioritize assets for

repair or replacement, including:

(A) the date by which the asset will need to be

repaired or replaced;

(B) the importance of the asset in providing safe

drinking water and complying with regulatory standards;

(C) the importance of the asset to the effective

operation of the system; and

(D) other criteria the authority determines;

(3) estimating asset repair and replacement costs;

(4) identifying and evaluating potential financing

options; and

(5) prioritizing systems that are not in compliance

with federal or state regulatory standards, including water quality

standards.

(c) The authority shall review and revise the asset

management plan annually to account for regulatory changes and

other developments.

(d) The board shall approve the asset management plan

annually as part of its budgeting process.

(e) The asset management plan's findings must be posted on

the authority's publicly accessible Internet website. (Acts 43rd

Leg., 1st C.S., Ch. 75, Sec. 26.)

Sec. 8512.0405. RATES AND OTHER CHARGES. (a) The board

shall impose rates and other charges for the sale or use of water,

water connections, power, electric energy, or other services the

authority sells, provides, or supplies.

(b) The rates and other charges must be reasonable,

nondiscriminatory, and sufficient to provide revenue adequate to:

(1) pay all expenses necessary to the operation,

maintenance, and replacement of and the making of additions to the

authority's properties and facilities;

(2) pay the principal of, the interest on, and any

premium on all bonds issued under this chapter when they become due

and payable;

(3) pay all sinking fund or reserve fund payments

agreed to be made with respect to any of those bonds and payable out

of that revenue when and as they become due and payable;

(4) fulfill the terms of any agreements made with the

holders of those bonds or with any person in their behalf; and

(5) discharge all other lawful obligations of the

authority when they become due.

(c) The rates and other charges may not exceed the amount

that may be necessary to fulfill the obligations imposed on the

authority by this chapter. (Acts 43rd Leg., 1st C.S., Ch. 75, Secs.

9(a), (b), (c), (d), (e), (g) (part).)

Sec. 8512.0406. USE OF EXCESS REVENUE. If the authority

receives revenue in excess of that required for the purposes

specified by Sections 8512.0405(b)(1), (2), (3), and (5), the board

may:

(1) use the excess revenue to:

(A) establish a reasonable depreciation and

emergency fund; or

(B) retire bonds issued under this chapter by

purchase and cancellation or redemption; or

(2) apply the excess revenue to any corporate purpose.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(f).)

Sec. 8512.0407. PAYMENTS UNDER AGREEMENTS FOR USE OR SALE

OF PROPERTY. (a) If the authority enters into an agreement to

lease, sell, or otherwise dispose of any property or facilities to

any person, the person is subject to the regulations and control of

rates or other charges by this state as may be provided by agreement

or general law.

(b) Notwithstanding Subsection (a), the board shall set

payments under a lease or other contract or agreement for the use or

sale of any property so that the payments, together with any other

pledged revenue, will be sufficient to:

(1) pay the principal of, the interest on, and any

premium on all bonds to which the payments are pledged when they

become due and payable;

(2) pay all sinking fund or reserve fund payments

agreed to be made with respect to any bonds described by Subdivision

(1), and payable out of those payments, when they become due and

payable;

(3) fulfill the terms of any agreement made with the

holders of bonds described by Subdivision (1) or any person in their

behalf; and

(4) discharge all other obligations of the authority

in connection with bonds described by Subdivision (1) when they

become due. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(h).)

Sec. 8512.0408. TAX, ASSESSMENT, OR PLEDGE OF CREDIT OF

STATE NOT AUTHORIZED BY CHAPTER. This chapter does not authorize

the authority to:

(1) impose a tax or assessment;

(2) create any debt payable out of taxes or

assessments; or

(3) pledge this state's credit. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 1 (part).)

SUBCHAPTER E. BORROWED MONEY AND GRANTS

Sec. 8512.0501. LOANS AND GRANTS. The authority may:

(1) borrow money for the authority's corporate

purposes;

(2) borrow money or accept a grant from any person,

including this state, the United States, or a corporation or agency

created or designated by this state or the United States;

(3) in connection with a loan or grant described by

Subdivision (2), enter into any agreement this state, the United

States, or the corporation or agency requires;

(4) make and issue the authority's bonds for money

borrowed, in the manner and to the extent provided by this chapter;

and

(5) refund or refinance any outstanding bonds and make

and issue the authority's bonds for those purposes in the manner and

to the extent provided by this chapter. (Acts 43rd Leg., 1st C.S.,

Ch. 75, Sec. 2(x) (part).)

Sec. 8512.0502. STATE PLEDGE REGARDING RIGHTS AND REMEDIES

OF BONDHOLDERS. This chapter does not deprive this state of its

power to regulate and control rates or other charges to be imposed

for the use of water, water connections, power, electric energy, or

another service. This state pledges to and agrees with the

purchasers and successive holders of the bonds issued under this

chapter that this state will not limit or alter the power this

chapter gives the authority to impose rates and other charges that

will produce revenue sufficient to pay the items specified by

Section 8512.0405(b) or in any way impair the rights or remedies of

the bondholders, or of any person in their behalf, until the

following are fully discharged:

(1) the bonds;

(2) the interest on the bonds;

(3) any premium;

(4) interest on unpaid installments of interest;

(5) all costs and expenses in connection with any

action or proceeding by or on behalf of the bondholders; and

(6) all other authority obligations in connection with

the bonds. (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(g) (part).)

Sec. 8512.0503. OBLIGATION PAYABLE FROM REVENUE. An

authority debt, liability, or obligation for the payment of money,

however entered into or incurred and whether arising from an

express or implied contract or otherwise, is payable:

(1) out of the revenue the authority receives with

respect to the authority's properties, subject to any prior lien on

the revenue conferred by any resolution previously adopted as

provided by this chapter authorizing the issuance of bonds; or

(2) if the board so determines, out of the proceeds of

sale by the authority of bonds payable solely from revenue

described by Subdivision (1). (Acts 43rd Leg., 1st C.S., Ch. 75,

Sec. 10.)

Sec. 8512.0504. POWER TO ISSUE BONDS. (a) The authority

may issue bonds for any corporate purpose.

(b) The bonds must be authorized by a board resolution.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 11 (part).)

Sec. 8512.0505. TERMS OF ISSUANCE. Authority bonds may be:

(1) sold for cash;

(2) issued on terms the board determines in exchange

for property of any kind, or any property interest, that the board

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 matured or unmatured authority obligations. (Acts 43rd Leg.,

1st C.S., Ch. 75, Sec. 11 (part).)

Sec. 8512.0506. 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 43rd

Leg., 1st C.S., Ch. 75, Sec. 11 (part).)

Sec. 8512.0507. RESOLUTION PROVISIONS. (a) A resolution

authorizing bonds may contain provisions:

(1) reserving the right to redeem the bonds or

requiring the redemption of the bonds, at the time, in the amount,

and at the price, not exceeding 105 percent of the principal amount

of the bonds, plus accrued interest, as may be provided;

(2) providing for the setting aside of sinking funds

or reserve funds and the regulation and disposition of those funds;

(3) pledging, to secure the payment of the principal

of and interest on the bonds and of the sinking fund or reserve fund

payments agreed to be made with respect to the bonds:

(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) prescribing the purposes to which the bonds or any

bonds subsequently to be issued, or the proceeds of the bonds, may

be applied;

(5) agreeing to impose rates and other charges

sufficient to produce revenue adequate to pay the items specified

by Section 8512.0405(b) and prescribing the use and disposition of

all revenue;

(6) 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;

(7) with regard to 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 or damage or loss of use

and occupancy resulting from specified risks;

(8) setting the procedure, if any, 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;

(9) 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 or all 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; and

(10) approved by the board that are not inconsistent

with this chapter.

(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 43rd Leg., 1st C.S., Ch. 75, Sec. 11

(part).)

Sec. 8512.0508. DEFAULT PROCEDURES. (a) This section

applies only to a default in:

(1) the payment of the principal of bonds as they

become due and payable, whether at maturity, by call for

redemption, or otherwise;

(2) the payment of the interest on bonds as the

interest becomes due and payable; or

(3) the performance of an agreement made with the

purchasers or successive holders of bonds.

(b) A resolution authorizing bonds and any indenture or

agreement entered into under the resolution may provide that in the

event of a default described by Subsection (a) that continues for a

period, if any, prescribed by the resolution, the trustee under the

indenture entered into with respect to the bonds authorized by the

resolution, or, if there is no indenture, a trustee appointed in the

manner provided by the resolution by the holders of 25 percent in

aggregate principal amount of the bonds authorized by the

resolution and then outstanding, and on the written request of the

holders of 25 percent in aggregate principal amount of the bonds

authorized by the resolution then outstanding, shall, in the

trustee's own name, but for the equal and proportionate benefit of

the holders of all of the bonds, and with or without having

possession of the bonds:

(1) enforce by mandamus or other action or proceeding

at law or in equity all rights of the bondholders;

(2) bring an action on the bonds or the related

coupons;

(3) require by action in equity the authority to

account as if it were the trustee of an express trust for the

bondholders;

(4) enjoin by action in equity any acts or things that

may be unlawful or in violation of the rights of the bondholders; or

(5) after such notice to the authority as the

resolution may provide, declare the principal of all of the bonds

due and payable, and if all defaults have been satisfied, then with

the written consent of the holders of 25 percent in aggregate

principal amount of the bonds then outstanding, annul the

declaration and its consequences.

(c) Notwithstanding Subsection (b), the holders of more

than a majority in principal amount of the bonds authorized by the

resolution and then outstanding, by written instrument delivered to

the trustee, are entitled to direct and control any and all action

taken or to be taken by the trustee under this section.

(d) A resolution, indenture, or agreement relating to bonds

may provide that in an action or proceeding under this section, the

trustee, whether or not all of the bonds have been declared due and

payable and with or without possession of any of the bonds, is

entitled to the appointment of a receiver who may:

(1) enter and take possession of all or any part of the

properties of the authority;

(2) operate and maintain the properties;

(3) impose rates and other charges sufficient to

provide revenue adequate to pay the items specified by Section

8512.0405(b) and the costs and disbursements of the action or

proceeding; and

(4) apply the revenue in accordance with this chapter

and the resolution authorizing the bonds.

(e) In an action or proceeding by a trustee under this

section, the reasonable fees, attorney's fees, and expenses of the

trustee and of the receiver, if any, constitute taxable

disbursements, and all costs and disbursements allowed by the court

are a first charge on any revenue pledged to secure the payment of

the bonds.

(f) The courts of Comal County have jurisdiction of an

action or proceeding by a trustee on behalf of the bondholders and

of all property involved in the action or proceeding.

(g) In addition to the powers specifically provided by this

section, a trustee has all powers necessary or appropriate for the

exercise of the powers specifically provided or incident to the

general representation of the bondholders in the enforcement of

their rights. (Acts 43rd Leg., 1st C.S., Ch. 75, Secs. 11(j)(1),

(2).)

Sec. 8512.0509. INTERIM BONDS. (a) Before issuing

definitive bonds, the authority may make and issue interim bonds.

(b) The interim bonds issued shall be taken up with the

proceeds of the definitive bonds, or the definitive bonds may be

issued and delivered in exchange for the interim bonds.

(c) After an exchange of definitive bonds for interim bonds,

the authority shall file certificates with the comptroller as to

the exchange and cancellation, and the comptroller shall register

the certificates in the same manner as the proceedings authorizing

the issuance of the bonds are registered. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 11(j)(3) (part).)

Sec. 8512.0510. TEMPORARY BONDS. The authority may make

and issue temporary bonds for the purpose of interim financing and

make agreements or other provision to refinance the temporary bonds

with bonds to provide permanent financing at the time, in the

manner, and on the conditions the board determines. (Acts 43rd

Leg., 1st C.S., Ch. 75, Sec. 11(j)(3) (part).)

Sec. 8512.0511. REFUNDING BONDS. (a) The authority may

make and issue refunding 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

premium, if any, 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 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.

(d) The comptroller shall register the refunding bonds 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 their 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 any applicable general law. (Acts 43rd Leg., 1st

C.S., Ch. 75, Sec. 11(j)(7).)

Sec. 8512.0512. POWER OF AUTHORITY TO PURCHASE BONDS ISSUED

BY AUTHORITY. (a) Using any money available for the purpose, the

authority may purchase bonds issued by the authority at a price not

exceeding the redemption price applicable at the time of the

purchase, or, if the bonds are not redeemable, at a price not

exceeding the principal amount of the bonds plus accrued interest.

(b) All bonds purchased under this section shall be

cancelled, and bonds may not be issued in lieu of those bonds.

(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 14.)

Sec. 8512.0513. BONDS EXEMPT FROM TAXATION. A bond issued

under this chapter and the interest on the bond are exempt from

taxation, except inheritance taxes, by this state or by any

political subdivision of this state. (Acts 43rd Leg., 1st C.S., Ch.

75, Sec. 16 (part).)

CHAPTER 8515. UPPER GUADALUPE RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8515.0101. DEFINITIONS

Sec. 8515.0102. NATURE OF AUTHORITY

Sec. 8515.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 8515.0104. REVIEW SCHEDULE UNDER SUNSET ACT

Sec. 8515.0105. TERRITORY

Sec. 8515.0106. CERTAIN STATUTES NOT APPLICABLE TO

AUTHORITY

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8515.0201. MEMBERSHIP OF BOARD

Sec. 8515.0202. TERMS

Sec. 8515.0203. REMOVAL

Sec. 8515.0204. VACANCY

Sec. 8515.0205. OATH AND BOND REQUIREMENT FOR

DIRECTORS

Sec. 8515.0206. OFFICERS

Sec. 8515.0207. VOTE BY PRESIDENT

Sec. 8515.0208. ABSENCE OR INACTION OF PRESIDENT

Sec. 8515.0209. DUTY OF SECRETARY; ABSENCE OF

SECRETARY FROM BOARD MEETING

Sec. 8515.0210. SEPARATION OF POLICY-MAKING AND

MANAGEMENT FUNCTIONS

Sec. 8515.0211. DIRECTOR TRAINING PROGRAM

Sec. 8515.0212. GENERAL MANAGER

Sec. 8515.0213. COMPLAINTS

Sec. 8515.0214. PUBLIC TESTIMONY

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8515.0301. GENERAL POWERS AND DUTIES

Sec. 8515.0302. ADDITIONAL POWERS

Sec. 8515.0303. CONSERVATION AND DEVELOPMENT

Sec. 8515.0304. COST OF RELOCATING OR ALTERING

PROPERTY

Sec. 8515.0305. POWERS RELATING TO GRANTS AND

CONTRACTS

Sec. 8515.0306. POWERS RELATING TO WASTE FACILITIES

Sec. 8515.0307. NOTICE OF ELECTION

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8515.0401. TAX METHOD

Sec. 8515.0402. DEPOSITORY

Sec. 8515.0403. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

SUBCHAPTER E. NOTES, BONDS, AND BORROWED MONEY

Sec. 8515.0501. REVENUE NOTES

Sec. 8515.0502. BORROWING MONEY

Sec. 8515.0503. AUTHORITY TO ISSUE BONDS

Sec. 8515.0504. EXCHANGING BONDS FOR PROPERTY OR WORK

Sec. 8515.0505. BOND ELECTION; NOTICE

Sec. 8515.0506. FAILED BOND ELECTION

Sec. 8515.0507. BONDS EXEMPT FROM TAXATION

CHAPTER 8515. UPPER GUADALUPE RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8515.0101. DEFINITIONS. In this chapter:

(1) "Authority" means the Upper Guadalupe River

Authority.

(2) "Board" means the authority's board of directors.

(3) "Director" means a board member. (Acts 46th Leg.,

R.S., p. 1062, S.L., Ch. 5, Sec. 1 (part); New.)

Sec. 8515.0102. NATURE OF AUTHORITY. The authority is a

conservation and reclamation district in Kerr County created under

Section 59, Article XVI, Texas Constitution. (Acts 46th Leg.,

R.S., p. 1062, S.L., Ch. 5, Secs. 1 (part), 10(b)(d) (part).)

Sec. 8515.0103. FINDINGS OF BENEFIT AND PUBLIC

PURPOSE. (a) The authority is created to serve a public use and

benefit.

(b) All property in the authority will benefit from the

works and projects the authority will accomplish under the powers

conferred by Section 59, Article XVI, Texas Constitution.

(c) The authority's creation is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution.

(d) The authority performs an essential public function

under the Texas Constitution in carrying out the purposes of this

chapter because the accomplishment of those purposes is for the

benefit of the people of this state and the improvement of their

properties and industries. (Acts 46th Leg., R.S., p. 1062, S.L.,

Ch. 5, Secs. 1 (part), 4, 22 (part).)

Sec. 8515.0104. 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, 2035, and every 12th year after that year.

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 1A(a) (part).)

Sec. 8515.0105. TERRITORY. (a) The authority is composed

of the territory described by Subsection (b) 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.

(b) The authority includes all territory in the boundaries

of Kerr County. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 2;

New.)

Sec. 8515.0106. CERTAIN STATUTES NOT APPLICABLE TO

AUTHORITY. (a) The authority is created notwithstanding the

provisions of Chapter 160, Acts of the 58th Legislature, Regular

Session, 1963 (former Article 970a, Vernon's Texas Civil Statutes),

as those provisions existed on June 17, 1965, and those provisions

do not apply to the authority.

(b) Any conflict between this section and subsequent

amendments to provisions described by Subsection (a) or the

subsequent codification of provisions described by Subsection (a)

in the Local Government Code is governed by the rules of statutory

construction, including Sections 311.025(a) and 311.026,

Government Code (Code Construction Act). (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 13; New.)

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8515.0201. MEMBERSHIP OF BOARD. (a) The board

consists of nine directors appointed by the governor.

(b) To be appointed as a director, a person must:

(1) be 18 years of age or older; and

(2) reside and own land in Kerr County. (Acts 46th

Leg., R.S., p. 1062, S.L., Ch. 5, Secs. 9(a) (part), (b) (part).)

Sec. 8515.0202. TERMS. Directors serve staggered four-year

terms, with four or five directors' terms expiring on February 1 of

each odd-numbered year. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5,

Secs. 9(a) (part), (b) (part).)

Sec. 8515.0203. REMOVAL. (a) It is a ground for removal

from the board that a director:

(1) does not have at the time of taking office the

qualifications required by Sections 8515.0201 and 8515.0205;

(2) does not maintain during service on the board the

qualifications required by Sections 8515.0201 and 8515.0205;

(3) is ineligible for directorship under Chapter 171,

Local Government Code;

(4) cannot, because of illness or disability,

discharge the director's duties for a substantial part of the

director's term; or

(5) is absent from more than half of the regularly

scheduled board meetings that the director is eligible to attend

during a calendar year without an excuse approved by a majority vote

of the board.

(b) The validity of a board action is not affected by the

fact that it is taken when a ground for removal of a director

exists.

(c) If the general manager has knowledge that a potential

ground for removal exists, the general manager shall notify the

board president of the potential ground. The president shall then

notify the governor and the attorney general that a potential

ground for removal exists. If the potential ground for removal

involves the president, the general manager shall notify the next

highest ranking director, who shall then notify the governor and

the attorney general that a potential ground for removal exists.

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 9A.)

Sec. 8515.0204. VACANCY. The governor shall fill a vacancy

on the board by appointing a person for the unexpired term. (Acts

46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 9(b) (part).)

Sec. 8515.0205. OATH AND BOND REQUIREMENT FOR DIRECTORS.

(a) Each director shall:

(1) take the constitutional oath of office; and

(2) execute a bond for $5,000, conditioned on the

faithful performance of the director's duties.

(b) The authority shall pay the cost of the bond. (Acts 46th

Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 9(a) (part).)

Sec. 8515.0206. OFFICERS. (a) The governor shall

designate a director as president to serve in that capacity at the

will of the governor. The president is the authority's chief

executive officer and the board's presiding officer.

(b) The board shall elect from the board's membership a vice

president, a secretary, and any other officers the board determines

necessary. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Secs. 9(b)

(part), (c) (part).)

Sec. 8515.0207. VOTE BY PRESIDENT. The president has the

same right to vote as any other director. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 9(c) (part).)

Sec. 8515.0208. ABSENCE OR INACTION OF PRESIDENT. When the

president is absent or fails or declines to act, the vice president

shall perform all duties and exercise all powers this chapter or

general law confers on the president. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 9(c) (part).)

Sec. 8515.0209. DUTY OF SECRETARY; ABSENCE OF SECRETARY

FROM BOARD MEETING. (a) The secretary shall keep and sign the

minutes of each board meeting and is the custodian of the

authority's minutes and records.

(b) If the secretary is absent from a board meeting, the

board shall name a secretary pro tem for the meeting who may:

(1) exercise all powers and duties of the secretary

for the meeting;

(2) sign the minutes of the meeting; and

(3) attest all orders passed or other action taken at

the meeting. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 9(c)

(part).)

Sec. 8515.0210. SEPARATION OF POLICY-MAKING AND MANAGEMENT

FUNCTIONS. The board shall develop and implement policies that

clearly separate the board's policy-making responsibilities and

the general manager's and staff's management responsibilities.

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 9(f).)

Sec. 8515.0211. 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 board'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 a river

authority's governing body in performing their duties; and

(6) any applicable ethics policies adopted by the

authority 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 general manager shall create a training manual that

includes the information required by Subsection (b). The general

manager shall distribute a copy of the training manual annually to

each director. Each director shall sign and submit to the general

manager a statement acknowledging that the director has received

and reviewed the training manual. (Acts 46th Leg., R.S., p. 1062,

S.L., Ch. 5, Sec. 9B.)

Sec. 8515.0212. GENERAL MANAGER. The board shall appoint a

general manager of the authority. (Acts 46th Leg., R.S., p. 1062,

S.L., Ch. 5, Sec. 9(d) (part).)

Sec. 8515.0213. COMPLAINTS. (a) The authority shall

maintain a system to promptly and efficiently act on complaints

filed with the authority.

(b) The authority shall maintain information about the

parties to the complaint, the subject matter of the complaint, a

summary of the results of the review or investigation of the

complaint, and the complaint's disposition.

(c) The authority shall periodically notify the parties to

the complaint of the complaint's status until final disposition,

unless the notice would jeopardize an investigation.

(d) The authority shall make information available

describing the authority's procedures for complaint investigation

and resolution. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec.

9C.)

Sec. 8515.0214. PUBLIC TESTIMONY. 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 issue

under the authority's jurisdiction. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 9D.)

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8515.0301. GENERAL POWERS AND DUTIES. (a) The

authority has the rights, powers, privileges, and duties provided

by general law applicable to a water control and improvement

district created under Section 59, Article XVI, Texas Constitution,

including those provided by Chapters 49 and 51, Water Code.

(b) The authority may exercise the powers necessary to

accomplish the rights and duties specified in Section 59, Article

XVI, Texas Constitution, as provided by Chapters 51 and 54, Water

Code.

(c) The authority may construct or acquire projects the

board determines are needed and incident or related to the

performance of the rights and duties described by Subsection (b).

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Secs. 5 (part),

10(b)(d) (part); New.)

Sec. 8515.0302. ADDITIONAL POWERS. (a) The authority may:

(1) control, develop, store, and preserve the waters

and flood waters of the Upper Guadalupe River and its tributaries

inside or outside the authority for a beneficial or useful purpose;

(2) purchase, acquire, build, construct, improve,

extend, reconstruct, repair, and maintain any dam, structure,

waterworks system, sanitary sewer system, storm sewer system,

drainage system, irrigation system, building, waterway, pipeline,

distribution system, ditch, lake, pond, reservoir, plant, and

recreational facility for public use, and any other facility or

equipment in aid of a purpose described by Subdivision (1);

(3) purchase or otherwise acquire a necessary site,

easement, right-of-way, land, or other property necessary for a

purpose described by Subdivision (1); and

(4) sell water and other services.

(b) The authority may use any practical means to exercise a

right, power, privilege, or function of the authority. (Acts 46th

Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 16(a).)

Sec. 8515.0303. CONSERVATION AND DEVELOPMENT. The

authority shall conserve and develop this state's natural resources

in the authority. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec.

10(b)(d) (part).)

Sec. 8515.0304. 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 authority's exercise of the power of eminent

domain, police power, or any other power requires relocating,

raising, lowering, rerouting, changing the grade of, or altering

the construction of a railroad, pipeline, or electric transmission,

telegraph or telephone line, conduit, pole, property or facility,

the required action shall be accomplished at the authority's sole

expense. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 12.)

Sec. 8515.0305. POWERS RELATING TO GRANTS AND CONTRACTS.

The authority may accept grants or contract with any person in

connection with or in aid of the exercise of any right, power,

privilege, or function of the authority. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 3.)

Sec. 8515.0306. POWERS RELATING TO WASTE FACILITIES. As a

necessary aid to the conservation, control, preservation, and

distribution of the water of the Upper Guadalupe River and its

tributaries for beneficial use, the authority may:

(1) construct, own, and operate sewage collection,

transmission, and disposal services;

(2) charge for a service described by Subdivision (1);

and

(3) enter into contracts with municipalities and

others in connection with a service described by Subdivision (1).

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 16(b).)

Sec. 8515.0307. NOTICE OF ELECTION. Notice of an election

may be given under the hand of the president or secretary. (Acts

46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 20.)

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8515.0401. TAX METHOD. The authority shall use the ad

valorem plan of taxation. (Acts 46th Leg., R.S., p. 1062, S.L., Ch.

5, Sec. 8.)

Sec. 8515.0402. DEPOSITORY. (a) The board shall select

one or more banks or trust companies in this state to act as a

depository of bond proceeds or of revenue derived from the

operation of authority facilities.

(b) The depository shall, as determined by the board:

(1) provide indemnity bonds;

(2) pledge securities; or

(3) meet any other requirements. (Acts 46th Leg.,

R.S., p. 1062, S.L., Ch. 5, Sec. 15.)

Sec. 8515.0403. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.

The authority is not required to pay a tax or assessment on:

(1) an authority project or any part of the project; or

(2) an authority purchase. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Sec. 22 (part).)

SUBCHAPTER E. NOTES, BONDS, AND BORROWED MONEY

Sec. 8515.0501. REVENUE NOTES. (a) The board, without an

election, may borrow money, not to exceed $55 million in the

aggregate, on the authority's negotiable notes, payable solely from

the authority's revenue derived from the ownership of all or any

designated part of the authority's works, plant, improvements,

facilities, equipment, or water rights after deduction of the

reasonable cost of maintaining and operating the facilities.

(b) The notes may be first or subordinate lien notes at the

board's discretion. An obligation may not be a charge on the

authority's property or on the taxes imposed by the authority. An

obligation may only be a charge on the revenue pledged for the

payment of the obligation. No part of the obligation may ever be

paid from the taxes imposed by the authority.

(c) The notes may bear interest at a rate not to exceed 10

percent and must mature not later than 40 years after the date of

their issuance. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Secs.

10(c)(b), (c), (d), (e).)

Sec. 8515.0502. BORROWING MONEY. The authority may borrow

money by any method or procedure provided by this chapter or general

law for a corporate purpose or combination of corporate purposes.

(Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 10(c)(a).)

Sec. 8515.0503. AUTHORITY TO ISSUE BONDS. The authority

may:

(1) issue bonds of any kind to carry out any purpose

authorized by this chapter; and

(2) provide and make payment for the bonds and for

necessary expenses incurred in connection with the issuance of the

bonds. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 17.)

Sec. 8515.0504. EXCHANGING BONDS FOR PROPERTY OR WORK. The

authority may exchange bonds, including refunding bonds:

(1) for property acquired by purchase; or

(2) in payment of the contract price of work performed

or materials or services provided for the authority's use and

benefit. (Acts 46th Leg., R.S., p. 1062, S.L., Ch. 5, Sec. 18

(part).)

Sec. 8515.0505. BOND ELECTION; NOTICE. (a) Except as

provided by Subsection (d), the authority may not issue bonds

unless a majority of voters voting at an election held in the

authority approve the issuance of the bonds.

(b) Before issuing bonds, the board must order an election

and provide notice in accordance with this section.

(c) Notice of the election must be given by:

(1) posting a copy of the notice in at least three

public places in the authority at least 14 days before the election

date; and

(2) publishing a copy of the notice in a newspaper of

general circulation in the authority at least once a week for two

consecutive weeks, the first of which must be published at least 14

days before the election date.

(d) An election to authorize the issuance of bonds is not

required if the bonds are payable from the revenue of an authority

system or facility and the board determines that:

(1) the proceeds of the bonds will provide less than $2

million for the purpose of acquiring land or acquiring or

constructing the facility, not including the cost of issuing the

bonds, interest during construction, and any initial deposit from

the proceeds to a reserve fund; and

(2) the bond proceeds will be used:

(A) to acquire land or an interest in land and to

construct or acquire a new facility in the nature of a new project

or undertaking for the authority, provided that only one series of

bonds may be issued to provide for a new project or undertaking for

the authority unless additional bonds are approved by a majority of

voters voting at an election;

(B) to provide money for repairs, expansion, and

improvement of existing authority facilities; or

(C) to provide for the completion of the

construction of a project for which the authority has previously

issued bonds approved at an election. (Acts 46th Leg., R.S., p.

1062, S.L., Ch. 5, Secs. 10(b)(a) (part), (b), (c) (part).)

Sec. 8515.0506. FAILED BOND ELECTION. (a) A general law,

including Sections 51.781 through 51.791, Water Code, that provides

for calling a hearing on the dissolution of a water control and

improvement district after a failed district bond election does not

apply to the authority.

(b) After the expiration of 30 days from the date of a failed

bond election, the board may call a subsequent bond election.

(c) The authority continues to exist and have the

authority's full power to function and operate regardless of the

outcome of a bond election. (Acts 46th Leg., R.S., p. 1062, S.L.,

Ch. 5, Sec. 19.)

Sec. 8515.0507. BONDS EXEMPT FROM TAXATION. Bonds issued

under this chapter, the transfer of the bonds, and income from the

bonds, including profits made on the sale of the bonds, are exempt

from taxation in this state. (Acts 46th Leg., R.S., p. 1062, S.L.,

Ch. 5, Sec. 22 (part).)

SECTION 1.03. WATER CONTROL AND IMPROVEMENT DISTRICT.

Subtitle I, Title 6, Special District Local Laws Code, is amended by

adding Chapter 9092 to read as follows:

CHAPTER 9092. FRANKLIN COUNTY WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9092.0101. DEFINITIONS

Sec. 9092.0102. NATURE OF DISTRICT

Sec. 9092.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 9092.0104. DISTRICT TERRITORY

Sec. 9092.0105. CORRECTION OF INVALID PROCEDURES

Sec. 9092.0106. LIBERAL CONSTRUCTION OF CHAPTER

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 9092.0201. COMPOSITION OF BOARD; BOARD ELECTION

Sec. 9092.0202. QUALIFICATIONS

Sec. 9092.0203. DIRECTORS' ELECTION

Sec. 9092.0204. VACANCIES

Sec. 9092.0205. BALLOT PETITION

Sec. 9092.0206. QUORUM

Sec. 9092.0207. OFFICERS

Sec. 9092.0208. VOTE BY BOARD PRESIDENT

Sec. 9092.0209. ABSENCE OR INACTION OF BOARD PRESIDENT

Sec. 9092.0210. DIRECTOR'S BOND

Sec. 9092.0211. BOARD MEETINGS

Sec. 9092.0212. DISTRICT RECORDS

Sec. 9092.0213. DISTRICT OFFICE

Sec. 9092.0214. EMPLOYEES

Sec. 9092.0215. EXPENDITURES

SUBCHAPTER C. POWERS AND DUTIES

Sec. 9092.0301. GENERAL POWERS

Sec. 9092.0302. GENERAL WATER SUPPLY POWERS

Sec. 9092.0303. CONTRACTS TO SUPPLY WATER SERVICES AND

OPERATE FACILITIES

Sec. 9092.0304. ACQUISITION OF WATER STORAGE AND

STORAGE CAPACITY

Sec. 9092.0305. SURVEYS AND INVESTIGATIONS

Sec. 9092.0306. DISPOSAL OR LEASE OF PROPERTY

Sec. 9092.0307. ACQUISITION OF PROPERTY; EMINENT

DOMAIN

Sec. 9092.0308. COST OF RELOCATING OR ALTERING

PROPERTY

Sec. 9092.0309. ARRANGEMENTS WITH STATE AND UNITED

STATES

Sec. 9092.0310. AWARDING OF CONTRACTS

Sec. 9092.0311. POWER TO QUALIFY FOR BENEFITS UNDER

OTHER LAW

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 9092.0401. TAX METHOD

Sec. 9092.0402. AUTHORITY TO IMPOSE TAX; TAX ELECTION

Sec. 9092.0403. DEPOSITORY

Sec. 9092.0404. FORM OF RECORDS AND ACCOUNTS

Sec. 9092.0405. AUDIT REPORT

Sec. 9092.0406. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

SUBCHAPTER E. BORROWED MONEY; BONDS

Sec. 9092.0501. AUTHORITY TO BORROW MONEY AND ISSUE

BONDS

Sec. 9092.0502. FORM OF BONDS

Sec. 9092.0503. MATURITY

Sec. 9092.0504. ELECTION FOR BONDS PAYABLE FROM AD

VALOREM TAXES

Sec. 9092.0505. BONDS PAYABLE FROM REVENUE

Sec. 9092.0506. BONDS PAYABLE FROM AD VALOREM TAXES

Sec. 9092.0507. TAX AND RATE REQUIREMENTS

Sec. 9092.0508. ADDITIONAL SECURITY

Sec. 9092.0509. TRUST INDENTURE

Sec. 9092.0510. INTERIM BONDS OR NOTES

Sec. 9092.0511. USE OF BOND PROCEEDS

Sec. 9092.0512. APPOINTMENT OF RECEIVER

Sec. 9092.0513. REFUNDING BONDS

Sec. 9092.0514. LIMITATION ON RIGHTS

Sec. 9092.0515. BONDS EXEMPT FROM TAXATION

CHAPTER 9092. FRANKLIN COUNTY WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9092.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Franklin County Water

District. (Acts 59th Leg., R.S., Ch. 719, Sec. 1 (part); New.)

Sec. 9092.0102. NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district created

under Section 59, Article XVI, Texas Constitution; and

(2) a political subdivision of this state. (Acts 59th

Leg., R.S., Ch. 719, Sec. 1 (part); Acts 60th Leg., R.S., Ch. 308,

Sec. 1 (part).)

Sec. 9092.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) The district is:

(1) created to serve a public use and benefit; and

(2) essential to the accomplishment of the

preservation and conservation of this state's natural resources.

(b) All land in the district will benefit from the district.

(c) This chapter addresses a subject in which this state and

the general public are interested.

(d) The district performs an essential public function

under the Texas Constitution in carrying out the purposes of this

chapter because the accomplishment of those purposes is for the

benefit of the people of this state and the improvement of their

properties and the industries. (Acts 59th Leg., R.S., Ch. 719,

Secs. 2 (part), 14 (part), 17 (part).)

Sec. 9092.0104. DISTRICT TERRITORY. The district's

boundaries are coextensive with the boundaries of Franklin County

unless the district's territory has been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law. (Acts 59th Leg., R.S., Ch. 719, Sec. 1

(part); New.)

Sec. 9092.0105. CORRECTION OF INVALID PROCEDURES. If a

court holds that any procedure under this chapter violates the

United States Constitution or the Texas Constitution, the district

by resolution may provide an alternative procedure that conforms

with that constitution. (Acts 59th Leg., R.S., Ch. 719, Sec. 18

(part).)

Sec. 9092.0106. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed to effectuate the chapter's

purposes. (Acts 59th Leg., R.S., Ch. 719, Sec. 17 (part).)

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 9092.0201. COMPOSITION OF BOARD; BOARD ELECTION. The

board consists of five directors elected as follows:

(1) one director represents and is elected from each

county commissioners precinct in Franklin County by the voters of

that precinct; and

(2) one director represents the district as a whole

and is elected from the district at large. (Acts 59th Leg., R.S.,

Ch. 719, Secs. 3(a) (part), (b) (part), (c) (part).)

Sec. 9092.0202. QUALIFICATIONS. (a) A candidate for:

(1) the at-large director position must be a qualified

voter who resides in the district; and

(2) a precinct director position must be a qualified

voter who resides in that precinct.

(b) A director must:

(1) be at least 18 years of age; and

(2) reside in and own land in the district. (Acts 59th

Leg., R.S., Ch. 719, Secs. 3(a) (part), (c) (part).)

Sec. 9092.0203. DIRECTORS' ELECTION. (a) A directors'

election shall be held on the first Saturday in May of each

odd-numbered year to elect the appropriate number of directors.

(b) The election order for the election of directors must

state the time, place, and purpose of the election.

(c) Notwithstanding Chapter 32, Election Code:

(1) the board shall appoint presiding judges as

necessary; and

(2) each presiding judge shall appoint one assistant

judge and at least two clerks to assist in holding the election.

(d) The board shall enter an order declaring the results of

the election. (Acts 59th Leg., R.S., Ch. 719, Sec. 3(c) (part).)

Sec. 9092.0204. VACANCIES. If a vacancy occurs in the

membership of the board, the remaining directors shall appoint a

person to fill the vacancy until the next directors' election. If

the vacant position is not regularly scheduled to be filled at that

election, the director elected at that election to fill the vacancy

shall serve only for the unexpired term. (Acts 59th Leg., R.S., Ch.

719, Secs. 3(b) (part), (e).)

Sec. 9092.0205. BALLOT PETITION. (a) A person who wants

the person's name printed on the ballot as a candidate for director

must submit to the board's secretary a petition requesting that

action.

(b) The petition must be signed by at least 10 residents of

the district who are qualified to vote at the election. (Acts 59th

Leg., R.S., Ch. 719, Sec. 3(d) (part).)

Sec. 9092.0206. QUORUM. Three directors constitute a

quorum for the transaction of all business. A favorable vote of a

majority of a quorum present is sufficient for the enactment of all

measures. (Acts 59th Leg., R.S., Ch. 719, Sec. 3(g) (part).)

Sec. 9092.0207. 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.

(b) The board shall appoint a secretary, who is not required

to be a director. (Acts 59th Leg., R.S., Ch. 719, Sec. 3(g)

(part).)

Sec. 9092.0208. VOTE BY BOARD PRESIDENT. The president has

the same right to vote as any other director. (Acts 59th Leg.,

R.S., Ch. 719, Sec. 3(g) (part).)

Sec. 9092.0209. ABSENCE OR INACTION OF BOARD

PRESIDENT. When the president is absent or fails or declines to

act, the vice president shall perform all duties and exercise all

powers this chapter confers on the president. (Acts 59th Leg.,

R.S., Ch. 719, Sec. 3(g) (part).)

Sec. 9092.0210. DIRECTOR'S BOND. Each director shall give

bond in the amount of $5,000 conditioned on the faithful

performance of the director's duties. (Acts 59th Leg., R.S., Ch.

719, Sec. 3(a) (part).)

Sec. 9092.0211. BOARD MEETINGS. (a) The board shall hold

regular meetings at least once a month at the time and place set by

board resolution or board bylaws.

(b) The president or any two directors may call a special

meeting as necessary in administering district business.

(c) At least five days before the date of a special meeting,

the secretary shall mail notice of the special meeting to each

director. A director may waive the notice in writing. (Acts 59th

Leg., R.S., Ch. 719, Sec. 3(g) (part).)

Sec. 9092.0212. DISTRICT RECORDS. The board's accounts of

its meetings and proceedings and its minutes, contracts, notices,

and other records are subject to public inspection. (Acts 59th

Leg., R.S., Ch. 719, Sec. 3(h) (part).)

Sec. 9092.0213. DISTRICT OFFICE. A regular office shall be

established and maintained in the district for conducting district

business. (Acts 59th Leg., R.S., Ch. 719, Sec. 3(h) (part).)

Sec. 9092.0214. EMPLOYEES. The district may employ a

general manager, attorneys, accountants, engineers, financial

experts, or other technical or nontechnical employees or assistants

and set the amount and manner of their compensation. (Acts 59th

Leg., R.S., Ch. 719, Sec. 4(5) (part).)

Sec. 9092.0215. EXPENDITURES. The district may provide for

the payment of expenditures considered essential to the proper

operation and maintenance of the district and the district's

affairs. (Acts 59th Leg., R.S., Ch. 719, Sec. 4(5) (part).)

SUBCHAPTER C. POWERS AND DUTIES

Sec. 9092.0301. GENERAL POWERS. (a) The district has all

the rights, powers, and privileges conferred by general law

applicable to a water control and improvement district created

under Section 59, Article XVI, Texas Constitution, including

Chapters 49 and 51, Water Code.

(b) The district may exercise all functions and perform any

act necessary or proper to carry out the purpose for which the

district is created. (Acts 59th Leg., R.S., Ch. 719, Secs. 4

(part), 4(6) (part), (7); New.)

Sec. 9092.0302. GENERAL WATER SUPPLY POWERS. The district

may:

(1) control, store, preserve, and distribute the

district's waters and flood waters and the waters of the district's

rivers and streams for all useful purposes by all practicable

means, including the construction, maintenance, and operation of

all appropriate improvements, plants, works, and facilities, and

the acquisition of water rights and all other properties, lands,

tenements, easements, and rights necessary to the purpose of the

organization of the district;

(2) process and store such waters and distribute those

waters for municipal, domestic, irrigation, and industrial

purposes, subject to Subchapters A through D, Chapter 11, and

Subchapter B, Chapter 12, Water Code; and

(3) purchase or contract for the purchase of water or a

water supply from any person. (Acts 59th Leg., R.S., Ch. 719, Secs.

4(1), (2), 16 (part).)

Sec. 9092.0303. CONTRACTS TO SUPPLY WATER SERVICES AND

OPERATE FACILITIES. (a) The district may contract with a

municipality or others to supply water services to them.

(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, water filtration, or purification

and water supply facilities.

(c) A contract entered into under this section may:

(1) be on the terms, for the consideration, 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 any refunding bonds

issued in lieu of the bonds are paid. (Acts 59th Leg., R.S., Ch.

719, Sec. 15.)

Sec. 9092.0304. ACQUISITION OF WATER STORAGE AND STORAGE

CAPACITY. The district may lease or 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 59th

Leg., R.S., Ch. 719, Sec. 16 (part).)

Sec. 9092.0305. SURVEYS AND INVESTIGATIONS. The district

may conduct a survey or an engineering investigation to provide

information for the district to facilitate the accomplishment of a

district purpose. (Acts 59th Leg., R.S., Ch. 719, Sec. 4(5)

(part).)

Sec. 9092.0306. DISPOSAL OR LEASE OF PROPERTY. (a) The

district may dispose of property or a property right that is not

needed for a purpose for which the district is created.

(b) The district may lease property or a property right for

a purpose that does not interfere with the use of district property.

(Acts 59th Leg., R.S., Ch. 719, Sec. 4(3).)

Sec. 9092.0307. ACQUISITION OF PROPERTY; EMINENT DOMAIN.

(a) The district, by gift, devise, purchase, lease, or

condemnation, may acquire land, an easement, right-of-way, or other

property in or outside the district that is incident to or necessary

in carrying out a district purpose.

(b) The district may exercise the power of eminent

domain. Procedures with reference to condemnation, the assessment

and estimation of damages, payment, appeal, and entrance on

property pending appeal, and other procedures prescribed by Chapter

21, Property Code, apply to the district.

(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 59th Leg., R.S., Ch. 719, Sec. 4(6) (part); New.)

Sec. 9092.0308. COST OF RELOCATING OR ALTERING PROPERTY.

(a) 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 taking property or 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 expense.

(b) The district's duty to pay under this section is limited

to the actual cost, without enhancement, of the property taken or

work required, after deducting any net salvage value derived from

property taken. (Acts 59th Leg., R.S., Ch. 719, Sec. 4(6) (part).)

Sec. 9092.0309. ARRANGEMENTS WITH STATE AND UNITED STATES.

The district may cooperate or contract with this state, including a

state agency, or the United States to exercise a district power or

further a district purpose and to receive a grant, a loan, or an

advancement from this state or the United States for those

purposes. (Acts 59th Leg., R.S., Ch. 719, Sec. 4(4).)

Sec. 9092.0310. AWARDING OF CONTRACTS. For a contract

awarded on or after September 1, 1995, the district shall comply

with the requirements of Section 49.273, Water Code, when awarding

the contract. (Acts 59th Leg., R.S., Ch. 719, Sec. 5; Acts 72nd

Leg., R.S., Ch. 59, Sec. 2.)

Sec. 9092.0311. POWER TO QUALIFY FOR BENEFITS UNDER OTHER

LAW. The district has the power necessary to fully qualify for and

gain the benefits of all laws that are helpful in carrying out the

purposes for which the district is created. (Acts 59th Leg., R.S.,

Ch. 719, Sec. 4 (part).)

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 9092.0401. TAX METHOD. The district shall use the ad

valorem plan of taxation. (Acts 59th Leg., R.S., Ch. 719, Sec. 2

(part).)

Sec. 9092.0402. AUTHORITY TO IMPOSE TAX; TAX ELECTION. (a)

If the tax is authorized at an election under Section 49.107, Water

Code, the board annually may impose an ad valorem tax to provide

money:

(1) necessary to construct or acquire, maintain, and

operate 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) An election for the imposition of taxes authorized by

this section must be:

(1) ordered by the board; and

(2) held and conducted, with notice provided and

results determined, in the manner provided by this chapter relating

to elections for the authorization of bonds.

(c) In ordering a tax election authorized by this section,

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 in the manner provided by this section.

(Acts 59th Leg., R.S., Ch. 719, Sec. 11 (part).)

Sec. 9092.0403. DEPOSITORY. (a) The board shall designate

one or more banks in the district to serve as a depository for the

district's money.

(b) District money shall be deposited in a designated

depository, except that sufficient money shall be remitted to the

bank or banks of payment to pay the principal of and interest on the

district's outstanding bonds on or before the maturity date of the

principal and interest.

(c) Membership of a bank officer or director on the board

does not disqualify the bank from being designated as a depository.

(Acts 59th Leg., R.S., Ch. 719, Sec. 13 (part).)

Sec. 9092.0404. FORM OF RECORDS AND ACCOUNTS. District

records and accounts must conform to approved methods of

bookkeeping. (Acts 59th Leg., R.S., Ch. 719, Sec. 3(h) (part).)

Sec. 9092.0405. AUDIT REPORT. (a) The audit report

prepared under Subchapter G, Chapter 49, Water Code, shall be

submitted at the first regular board meeting after the audit is

completed.

(b) A copy of the audit report shall be filed:

(1) as required by Section 49.194, Water Code;

(2) with the district's depository; and

(3) in the office of the auditor who performed the

audit.

(c) The copies described by Subsection (b) must be open to

public inspection, in accordance with Section 49.196, Water Code.

(Acts 59th Leg., R.S., Ch. 719, Sec. 3(h) (part); New.)

Sec. 9092.0406. 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 59th Leg., R.S.,

Ch. 719, Sec. 14 (part).)

SUBCHAPTER E. BORROWED MONEY; BONDS

Sec. 9092.0501. AUTHORITY TO BORROW MONEY AND ISSUE BONDS.

The district may borrow money and issue bonds to carry out any power

conferred by this chapter, including to provide money to purchase

or otherwise provide works, plants, facilities, or appliances

necessary to accomplish the purposes authorized by this chapter.

(Acts 59th Leg., R.S., Ch. 719, Sec. 6(a) (part).)

Sec. 9092.0502. 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 59th Leg., R.S.,

Ch. 719, Sec. 6(a) (part).)

Sec. 9092.0503. MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 59th

Leg., R.S., Ch. 719, Sec. 6(a) (part).)

Sec. 9092.0504. ELECTION FOR BONDS PAYABLE FROM AD VALOREM

TAXES. (a) District bonds, other than refunding bonds, payable

wholly or partly from ad valorem taxes may not be issued unless

authorized by an election at which a majority of the votes cast

favor the bond issuance.

(b) The board may order an election under this section

without a petition. The order 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 interest rate of the bonds;

(5) the maximum maturity of the bonds;

(6) the form of the ballot; and

(7) the presiding judge for each polling place.

(c) Notice of the election must be given by publishing a

substantial copy of the election order in a newspaper of general

circulation in the district once each week for at least four

consecutive weeks. The first publication must be not later than 28

days before the election date.

(d) If an election to issue bonds under this section fails,

the board may not order an election under this section for a period

of six months.

(e) The district may issue without an election bonds not

payable wholly or partly from ad valorem taxes. (Acts 59th Leg.,

R.S., Ch. 719, Secs. 9(a), (b) (part).)

Sec. 9092.0505. BONDS PAYABLE FROM REVENUE. (a) In this

section, "net revenue" means the district's gross revenue less the

amount necessary to pay the reasonable cost of maintaining and

operating the district and the district's property.

(b) The board may issue bonds payable, as pledged by board

resolution, from:

(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 59th Leg.,

R.S., Ch. 719, Secs. 6(a) (part), (c).)

Sec. 9092.0506. BONDS PAYABLE FROM AD VALOREM TAXES. The

board may issue bonds payable, as pledged by board resolution,

from:

(1) ad valorem taxes of the district; or

(2) ad valorem taxes and revenue of the district.

(Acts 59th Leg., R.S., Ch. 719, Sec. 6(a) (part).)

Sec. 9092.0507. 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 sufficient to pay

the bonds and the interest on the bonds as the bonds and interest

become due. The board shall take into consideration reasonable

delinquencies and collection costs in imposing the ad valorem tax.

The board may adopt the tax rate for any year after considering the

money reasonably to be received from the pledged revenue available

for payment of principal and interest and 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 impose and, as necessary, revise the

rates of compensation for water sold and services provided by the

district.

(c) For bonds payable wholly from revenue, the rates of

compensation must be in an amount sufficient to:

(1) pay the expenses 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 in an amount sufficient to assure compliance

with the resolution authorizing the issuance of the bonds. (Acts

59th Leg., R.S., Ch. 719, Secs. 6(d), (e).)

Sec. 9092.0508. ADDITIONAL SECURITY. (a) District bonds,

including revenue 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 on all franchises, easements, water rights

and appropriation permits, leases, and contracts and 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 59th Leg., R.S., Ch. 719, Sec. 8

(part).)

Sec. 9092.0509. TRUST INDENTURE. (a) District bonds,

including revenue 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

this state.

(b) A trust indenture, regardless of the existence of a deed

of trust or mortgage lien on property, may:

(1) contain any provisions prescribed by the board for

the security of the bonds and the preservation of the trust estate;

(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 59th Leg., R.S., Ch. 719, Sec. 8 (part).)

Sec. 9092.0510. INTERIM BONDS OR NOTES. Before issuing

definitive bonds, the board may issue interim bonds or notes

exchangeable for definitive bonds. (Acts 59th Leg., R.S., Ch. 719,

Sec. 6(a) (part).)

Sec. 9092.0511. USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of district bonds 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 bonds to

pay any expense necessarily incurred in accomplishing the

district's purpose, including the expense of organizing the

district, engineering investigations, and issuing and selling the

bonds.

(c) The proceeds from the sale of the bonds may be:

(1) placed on time deposit with the district's

depository bank; or

(2) temporarily invested in direct obligations of the

United States maturing not later than the first anniversary of the

date of investment. (Acts 59th Leg., R.S., Ch. 719, Sec. 6(f).)

Sec. 9092.0512. APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of principal of or interest on

district bonds 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:

(1) collect and receive all district income except

taxes;

(2) employ and discharge district agents and

employees;

(3) take charge of money on hand, except money

received from taxes, unless commingled; and

(4) 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 other services provided by the district 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

59th Leg., R.S., Ch. 719, Sec. 6(g) (part).)

Sec. 9092.0513. REFUNDING BONDS. (a) The district may

issue refunding bonds to refund outstanding bonds issued under this

chapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series

and combine the pledges for the outstanding bonds for the security

of the refunding bonds; and

(2) be secured by a pledge of other or additional

revenue or mortgage liens.

(c) The provisions of this chapter 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 were 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 effective option date or

maturity date, and the comptroller shall register the refunding

bonds without the concurrent surrender and cancellation of the

bonds to be refunded. (Acts 59th Leg., R.S., Ch. 719, Sec. 7.)

Sec. 9092.0514. LIMITATION ON RIGHTS. The resolution

authorizing the bonds or the trust indenture securing the bonds may

limit or qualify the rights 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 59th

Leg., R.S., Ch. 719, Sec. 6(g) (part).)

Sec. 9092.0515. BONDS EXEMPT FROM TAXATION. District

bonds, the transfer of the bonds, and the income from the bonds,

including profits made on the sale of the bonds, are exempt from

taxation in this state. (Acts 59th Leg., R.S., Ch. 719, Sec. 14

(part).)

SECTION 1.04. WATER IMPROVEMENT DISTRICT. Subtitle J,

Title 6, Special District Local Laws Code, is amended by adding

Chapter 9305 to read as follows:

CHAPTER 9305. ESCONDIDO WATERSHED DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9305.0101. DEFINITIONS

Sec. 9305.0102. NATURE OF DISTRICT

Sec. 9305.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE

Sec. 9305.0104. DISTRICT TERRITORY

Sec. 9305.0105. CORRECTION OF INVALID PROCEDURES

Sec. 9305.0106. LIBERAL CONSTRUCTION OF CHAPTER

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 9305.0201. COMPOSITION OF BOARD

Sec. 9305.0202. QUALIFICATIONS

Sec. 9305.0203. NOTICE OF ELECTION

Sec. 9305.0204. BALLOT PETITION

Sec. 9305.0205. OFFICERS

Sec. 9305.0206. VOTE BY PRESIDENT

Sec. 9305.0207. ABSENCE OR INACTION OF PRESIDENT

Sec. 9305.0208. DIRECTOR'S BOND

Sec. 9305.0209. EMPLOYEES

Sec. 9305.0210. EXPENDITURES

Sec. 9305.0211. SEAL

SUBCHAPTER C. POWERS AND DUTIES

Sec. 9305.0301. GENERAL POWERS

Sec. 9305.0302. EMINENT DOMAIN

Sec. 9305.0303. COST OF RELOCATING OR ALTERING

PROPERTY

Sec. 9305.0304. SURVEYS AND INVESTIGATIONS

Sec. 9305.0305. POWER TO QUALIFY FOR BENEFITS UNDER

OTHER LAW

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 9305.0401. AUTHORITY TO IMPOSE TAX; LIMITATION ON

TAX RATE; TAX ELECTION

Sec. 9305.0402. TAX METHOD

Sec. 9305.0403. DEPOSITORY

Sec. 9305.0404. PAYMENT OF TAX OR ASSESSMENT NOT

REQUIRED

SUBCHAPTER E. BONDS

Sec. 9305.0501. AUTHORITY TO ISSUE BONDS; TAXES FOR

BONDS

Sec. 9305.0502. BOND ELECTION REQUIRED

Sec. 9305.0503. FORM OF BONDS

Sec. 9305.0504. MATURITY

Sec. 9305.0505. USE OF BOND PROCEEDS

Sec. 9305.0506. REFUNDING BONDS

Sec. 9305.0507. BONDS EXEMPT FROM TAXATION

CHAPTER 9305. ESCONDIDO WATERSHED DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9305.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Escondido Watershed

District. (Acts 57th Leg., R.S., Ch. 364, Sec. 1 (part); New.)

Sec. 9305.0102. NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district created

under Section 59, Article XVI, Texas Constitution; and

(2) a political subdivision of this state. (Acts 57th

Leg., R.S., Ch. 364, Sec. 1 (part).)

Sec. 9305.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) The district is:

(1) created to serve a public use and benefit; and

(2) essential to the accomplishment of the

preservation and conservation of this state's natural resources.

(b) All land in the district will benefit from the district.

(c) All territory in the district will benefit from the

works and improvements accomplished and provided by the district

under the powers conferred by this chapter and Section 59, Article

XVI, Texas Constitution.

(d) This chapter addresses a subject in which this state and

the general public are interested.

(e) The district performs an essential public function

under the Texas Constitution in carrying out the purposes of this

chapter because the accomplishment of those purposes is for the

benefit of the people of this state and the improvement of their

properties and industries. (Acts 57th Leg., R.S., Ch. 364, Secs. 3

(part), 4 (part), 15 (part), 16 (part).)

Sec. 9305.0104. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 364, Acts

of the 57th Legislature, Regular Session, 1961, as that territory

may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The district includes all property and territory in the

district's boundaries. (Acts 57th Leg., R.S., Ch. 364, Sec. 3

(part); New.)

Sec. 9305.0105. CORRECTION OF INVALID PROCEDURES. If a

court holds that any procedure under this chapter violates the

United States Constitution or the Texas Constitution, the district

by resolution may provide an alternative procedure that conforms

with that constitution. (Acts 57th Leg., R.S., Ch. 364, Sec. 17

(part).)

Sec. 9305.0106. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed to effectuate the chapter's

purposes. (Acts 57th Leg., R.S., Ch. 364, Sec. 16 (part).)

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 9305.0201. COMPOSITION OF BOARD. The board consists

of five elected directors. (Acts 57th Leg., R.S., Ch. 364, Sec. 5(a)

(part); New.)

Sec. 9305.0202. QUALIFICATIONS. A director must:

(1) be at least 18 years of age; and

(2) reside in and own land in the district. (Acts 57th

Leg., R.S., Ch. 364, Sec. 5(a) (part).)

Sec. 9305.0203. NOTICE OF ELECTION. Notice of a directors'

election must be published once in a newspaper of general

circulation in the district at least 30 days before the election

date. (Acts 57th Leg., R.S., Ch. 364, Sec. 5(b) (part).)

Sec. 9305.0204. BALLOT PETITION. (a) A person who wants

the person's name printed on the ballot as a candidate for director

must submit to the board's secretary a petition requesting that

action.

(b) The petition must be signed by at least 10 residents of

the district who are qualified to vote at the election. (Acts 57th

Leg., R.S., Ch. 364, Sec. 5(c) (part).)

Sec. 9305.0205. OFFICERS. (a) The board shall elect from

the board's membership a president, a vice president, and any other

officers the board determines necessary.

(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 57th Leg., R.S., Ch. 364, Sec.

5(f) (part).)

Sec. 9305.0206. VOTE BY PRESIDENT. The president has the

same right to vote as any other director. (Acts 57th Leg., R.S.,

Ch. 364, Sec. 5(f) (part).)

Sec. 9305.0207. ABSENCE OR INACTION OF PRESIDENT. When the

president is absent or fails or declines to act, the vice president

shall perform all duties and exercise all powers this chapter

confers on the president. (Acts 57th Leg., R.S., Ch. 364, Sec. 5(f)

(part).)

Sec. 9305.0208. DIRECTOR'S BOND. Each director shall give

bond in the amount of $5,000 conditioned on the faithful

performance of the director's duties. (Acts 57th Leg., R.S., Ch.

364, Sec. 5(a) (part).)

Sec. 9305.0209. 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 57th Leg., R.S., Ch. 364, Sec. 5(g)

(part).)

Sec. 9305.0210. EXPENDITURES. The board may provide for

the payment of expenditures considered essential to the proper

operation and maintenance of the district and the district's

affairs. (Acts 57th Leg., R.S., Ch. 364, Sec. 5(g) (part).)

Sec. 9305.0211. SEAL. The board may adopt a seal for the

district. (Acts 57th Leg., R.S., Ch. 364, Sec. 5(f) (part).)

SUBCHAPTER C. POWERS AND DUTIES

Sec. 9305.0301. GENERAL POWERS. The district may:

(1) control, store, and distribute the water and flood

water in the district for or in aid of conserving, preserving,

reclaiming, and improving the land and soil in the district;

(2) carry out flood prevention measures to prevent or

aid in preventing damage to land and soil and the fertility of the

land and soil;

(3) engage in land treatment measures to prevent

deterioration, erosion, and loss of land and soil;

(4) carry out preventive and control measures in the

district;

(5) construct, acquire, improve, carry out, maintain,

repair, and operate dams, structures, projects, and works of

improvement for:

(A) flood prevention, including structural and

land treatment measures;

(B) agricultural and land treatment measures;

and

(C) agricultural phases of the conservation,

development, use, and disposal of water in the district; and

(6) purchase or acquire other facilities and equipment

necessarily connected with the functions described by Subdivision

(5) and engage in activities necessary to carry out those

functions. (Acts 57th Leg., R.S., Ch. 364, Sec. 2 (part).)

Sec. 9305.0302. EMINENT DOMAIN. (a) To carry out a power

conferred by this chapter, the district may exercise the power of

eminent domain to acquire land and easements in the district.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

(c) The board shall determine the amount and type of

interest in land and easements to be acquired under this section.

(d) 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 57th Leg., R.S., Ch. 364, Sec. 6 (part); New.)

Sec. 9305.0303. 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 enhancing 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 district's sole expense. (Acts 57th Leg., R.S., Ch. 364,

Sec. 6 (part).)

Sec. 9305.0304. 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

purpose for which the district is created. (Acts 57th Leg., R.S.,

Ch. 364, Sec. 5(g) (part).)

Sec. 9305.0305. POWER TO QUALIFY FOR BENEFITS UNDER OTHER

LAW. The district has the power necessary to fully qualify for and

gain the full benefits of any law helpful in carrying out the

purposes for which the district is created. (Acts 57th Leg., R.S.,

Ch. 364, Sec. 2 (part).)

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 9305.0401. AUTHORITY TO IMPOSE TAX; LIMITATION ON TAX

RATE; TAX ELECTION. (a) If the tax is authorized at an election

under Section 49.107, Water Code, the board annually may impose an

ad valorem tax to provide money:

(1) necessary to construct or acquire, maintain, and

operate 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) An election for the imposition of taxes authorized by

this section must be:

(1) ordered by the board; and

(2) held and conducted, with notice provided and

results determined, in the manner provided by this chapter relating

to elections for the authorization of bonds.

(c) In ordering a tax election authorized by this section,

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 in the manner provided by this section.

(Acts 57th Leg., R.S., Ch. 364, Sec. 11 (part).)

Sec. 9305.0402. 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 57th Leg., R.S., Ch. 364,

Sec. 4 (part).)

Sec. 9305.0403. DEPOSITORY. (a) The board shall designate

one or more banks to serve as a depository for district money.

(b) District money shall be deposited in a designated

depository, except that money shall be remitted to the bank of

payment to pay the principal of and interest on the district's

outstanding bonds.

(c) Membership of a bank officer or director on the board

does not disqualify the bank from being designated as a depository.

(Acts 57th Leg., R.S., Ch. 364, Sec. 13 (part).)

Sec. 9305.0404. 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 57th Leg., R.S.,

Ch. 364, Sec. 15 (part).)

SUBCHAPTER E. BONDS

Sec. 9305.0501. AUTHORITY TO ISSUE BONDS; TAXES FOR BONDS.

(a) The district may issue bonds payable from ad valorem taxes

imposed on all taxable property in the district to provide dams,

structures, projects, and works of improvement for flood

prevention, including structural and land treatment measures, to

purchase and acquire lands, easements, and rights-of-way and for

agricultural phases of conservation, development, and use and

disposal of water, for necessary facilities, equipment, and

properties in connection therewith and for improvement,

maintenance, repair, and operation of same, and to carry out any

other power conferred by this chapter.

(b) The board shall annually impose the taxes in an amount

sufficient to pay the principal of and interest on the bonds as the

bonds and interest become due.

(c) Bonds issued under this chapter must be authorized by a

board resolution. (Acts 57th Leg., R.S., Ch. 364, Sec. 7 (part).)

Sec. 9305.0502. BOND ELECTION REQUIRED. (a) District

bonds, other than refunding bonds, may not be issued unless

authorized by an election at which a majority of the votes cast

favor the bond issuance.

(b) The board may order an election under this section

without a petition. The order 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 amount of the bonds;

(4) the maximum maturity of the bonds;

(5) the maximum interest rate of the bonds;

(6) the form of the ballot; and

(7) the presiding judge for each polling place.

(c) Notice of the election must be given by publishing in a

newspaper of general circulation in the district a substantial copy

of the election order. The notice must be published once each week

for two consecutive weeks. The first publication must be not later

than 14 days before the election date. (Acts 57th Leg., R.S., Ch.

364, Sec. 8 (part).)

Sec. 9305.0503. 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 57th Leg., R.S.,

Ch. 364, Sec. 7 (part).)

Sec. 9305.0504. MATURITY. District bonds must mature not

later than 40 years after the date of their issuance. (Acts 57th

Leg., R.S., Ch. 364, Sec. 7 (part).)

Sec. 9305.0505. USE OF BOND PROCEEDS. (a) The district may

set aside an amount of proceeds from the sale of district bonds for

the payment of interest to accrue during construction and for one

year after construction and a reserve interest and sinking fund.

(b) The district may use proceeds from the sale of the bonds

to pay any expense incurred in accomplishing the purpose for which

the district is created, including:

(1) the cost of printing and issuing the bonds; and

(2) payment of fees associated with attorneys, fiscal

agents, and engineers.

(c) Pending the use of bond proceeds for the purpose for

which the bonds were issued, the board may invest the proceeds in

obligations of or guaranteed by the United States. (Acts 57th Leg.,

R.S., Ch. 364, Sec. 7 (part).)

Sec. 9305.0506. REFUNDING BONDS. (a) The district without

an election may issue refunding bonds for the purpose of refunding

outstanding bonds authorized by this chapter and the interest on

those bonds.

(b) Refunding bonds the district issues may be issued to

refund bonds of more than one series of outstanding bonds.

(c) The provisions of this chapter regarding the issuance of

other bonds 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

concurrent surrender and cancellation of the bonds to be refunded.

(Acts 57th Leg., R.S., Ch. 364, Sec. 9.)

Sec. 9305.0507. 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 57th Leg., R.S., Ch. 364, Sec. 15

(part).)

ARTICLE 2. CONFORMING AMENDMENT

SECTION 2.01. ESCONDIDO WATERSHED DISTRICT. Section 3,

Chapter 364, Acts of the 57th Legislature, Regular Session, 1961,

is amended to read as follows:

Sec. 3. TERRITORY COMPRISING THE DISTRICT. [
It is expressly

determined and found that all of the territory included within the

area of the District will be benefited by the works and improvements

which are to be accomplished and provided by the District pursuant

to the powers conferred by the provisions of Article XVI, Section

59, of the Constitution of Texas and this Act.
] The area of the

Escondido Watershed
District shall consist of the property and

territory embraced within the following boundaries, to wit:

Beginning at the NW corner of the Julius Hedtke 300.2 acre

tract in the Willis Orton Original Grant A-221, being W 10 miles of

the County Seat, Karnes City, Texas;

THENCE N 50 degrees E 4000.0 ft. to the NE cor. of the said

Hedtke Tract in the D. B. Scott Jr. W. line;

THENCE S 40 degrees E 120.0 ft. to the NW cor. of the J. H.

Davidson 100.0 acre tract being in the Julius Hedtke E line;

THENCE N 50 degrees E 5210.0 ft. with the said J. H. Davidson

N line to the NE cor. of said tract in the W ROW line of a county rd.;

THENCE N 40 degrees W 3933.3 ft. with the said W line of the

county rd. being the E line of the D. B. Scott Jr. 221 acre tract

pass the NE cor. of the said Scott tract to the intersection of the W

ROW line of the said county rd. and the N ROW line of another county

rd., said point being in the E line of the Finley D. Barth E line;

THENCE N 50 degrees E 2880.0 ft. with the said N ROW line of a

county rd. to the point of intersection of this ROW line with the E

line of the said Willis Orton Original Grant A-221;

THENCE S 40 degrees E 4375.0 ft. with the said Willis Orton E

line being the E line of the C. L. Gideon 411.6 acre tract being the

southernmost cor. of the B. J. Nichols 414 acre tract;

THENCE S 87 degrees E with the N line of the W. P. Brashear

Original Grant A-57 to the intersection of this line and the W line

of the Lusgardo Martinez Original Grant A-196, 815 ft.; this being

the SW cor. of said Grant A-196;

THENCE N 3 degrees E 5733.3 ft. with the W line of the said

grant pass the NW cor. of said grant to the NW cor. of the T. G.

Butler Original Grant A-429 being the NE cor. of the A. C. Gideon

4.4 acre tract;

THENCE N 89 degrees E 24,083.1 ft. with the N line of the said

Grant A-429 pass the W line of the said Francisco Ruiz Original

Grant A-9 and with the S ROW line of a county rd. being the N line of

the D. C. Coldeway 155 acre tract to the NE cor. of this tract;

THENCE S 3 degrees W 2275.0 ft. with the E line of the said

Coldeway tract to the SE cor. of said tract in the NE line of the

Rudolph Voight 140 acre tract;

THENCE S 87 degrees E 12,384.4 ft. with the Rudolph Voight N

line pass his NE cor. with the N. H. Finch 200 acre tract N line

cross a county rd. along the Combs and Browne 322 acre tract N line

to the E line of the Ruiz Grant A-9 being the NE cor. of the said 322

acre tract;

THENCE S 3 degrees W 1075.0 ft. with the said Ruiz E line

being the E line of the Combs and Browne tract to the NW cor. of the

Dora Conrads 75 acre tract;

THENCE S 87 degrees E 5634.0 ft. with the Dora Conrads N line

across a county rd. with the R. M. Sattler N line to the NE cor. of

this tract in the W ROW line of the Kenedy to Karnes City Hy.;

THENCE S 3 degrees W 1200.0 ft. with the Sattler E line to a

point in said ROW line;

THENCE N 45 degrees E 6,025.0 ft. across said highway to the

J. D. Ruckman SW cor. and with the J. D. Ruckman S line pass the SW

cor. of the W. W. Browne tract being the SE cor. of the J. D. Ruckman

tract with the S line of the W. W. Browne tract to the SE cor. of

said tract being the NE cor. of the E. J. Smolik tract and the NE

cor. of the J. Poitevent Original Grant A-323;

THENCE N 45 degrees W 1,500.0 ft. with the said Browne E line

being the 0. E. Moore W line across the S.P.R.R. ROW to the NW cor.

of the Moore tract in the E line of the Browne tract being the NW

cor. of the Andreas Soto Original Grant A-260;

THENCE N 45 degrees E with the said Moore N line being the N

line of the said Grant A-260 across a county rd. to the intersection

of the W line of the R. W. and Prudie D. Derum Original Grant A-439;

THENCE N 3 degrees E 7,185.0 ft. with the said W line of the

A-439 Grant to the N cor. of said Grant being the N cor. of the Annie

Bailey 56.57 acre tract;

THENCE S 45 degrees E with the E line of the said A-439 Grant

pass the SE cor. of same being the N cor. of the William E. Howth

Grant A-144 with the E line of same to the S cor. of the said A-144

Grant in the N line of the said A-260 Original Grant; 5,200.0 ft.;

THENCE N 45 degrees E 545.0 ft. with the said A-260 Grant N

line to the NE cor. of the A. M. Bailey 225.5 acre tract being the NW

cor. of the S. M. Elder 214.5 acre tract;

THENCE S 45 degrees E with the E line of the A. M. Bailey tract

being the W line of the said Elder tract pass a N cor. of the Claude

Jennings tract to an interior cor. of the Claude Jennings tract;

THENCE N 45 degrees E with the Claude Jennings N line 1676.4

ft. with the Jennings N line to the NE cor. of same;

THENCE S 45 degrees E 3,058.3 ft. with the Claude Jennings E

line to the S cor. of the said Claude Jennings tract in the N line of

the Edna Wicker 159.4 acre tract;

THENCE N 45 degrees E 1833.3 ft. with the Edna Wicker N line

to the NE cor. of same being the NW cor. of the E. Elder 95 acre

tract;

THENCE S 45 degrees E 2000 ft. with the said Edna Wicker E

line to the N side of a county rd. being the SE cor. of the Edna

Wicker tract;

THENCE S 45 degrees W 700.3 ft. with the S line of the Wicker

tract being the N ROW line of a county Rd.;

THENCE S 45 degrees E 4895.0 ft. with the David Banduen 165

acre tract to the intersection of this line with the NW ROW line of a

county Rd. being the SE cor. of the David Banduen tract;

THENCE S 11 degrees W 1966.6 ft. with the N ROW line of said

road past the Burlie Burris East corner to a point in the SE line of

the Burlie Burris 37 acre tract.

THENCE S 45 degrees E 3366.6 ft. across the said rd. with the

W. J. Green W line to the SE cor. of same being in the S line of the

J. B. Dupree Original Grant A-86;

THENCE N 45 degrees E 2,320.0 ft. with the S line of the said

A-86 Grant being the N line of the John Huth and Carl Houck to the NE

cor. of same;

THENCE S 45 degrees E 3325.0 ft. with the Houck E line being

the P. R. Goff W line to the SE cor. of the Houck tract being the SW

cor. of the Goff tract on the N ROW line of a county rd.;

THENCE N 45 degrees E 4366.6 ft. with the N ROW line being the

S line of the P. R. Goff 220 acre tract to a point in the P. R. Goff S

line;

THENCE S 45 degrees E 7366.6 ft. across said county rd. to the

NE cor. of the Valda E. Ruhmann 808 acre tract and with the E line of

said Ruhmann tract being the W ROW line of a county rd. across the

county rd. to the S ROW line of said rd. being in the N line of the K.

L. Handy 259.2 acre tract;

THENCE N 45 degrees E 4410.0 ft. with the N line of the K. L.

Handy tract pass the common cor. of the Handy tract and the Bertha

B. Ruhmann 333.8 acre tract to the NE cor. of said Ruhmann tract

being the NW cor. of the N. E. Colbath et al 677.6 acre tract;

THENCE S 45 degrees E 3585.0 ft. with the common line between

the said Ruhmann and Colbath tracts to a SW cor. of the Colbath

tract in the Ruhmann line;

THENCE N 45 degrees E 1733.7 ft. with the Colbath line to an

interior cor. of the Colbath tract;

THENCE S 45 degrees E 1666.6 ft. with the Colbath and Ruhmann

common line to an interior cor. of the Ruhmann tract and a S cor. of

the Colbath tract;

THENCE S 45 degrees E 4320.0 ft. with the said Colbath tract

to the W bank of the San Antonio River;

THENCE down the meanders of the San Antonio River S 1 degrees

W 1422.7 ft.; S 25 degrees W 475.0 ft., S 3 degrees E 866.6 ft.; S 59

degrees 30 minutes E 1566.6 ft.; S 25 degrees E 2500 ft.; S 50

degrees W 1560.0 ft.; S 17 degrees W 566.6 ft.; S 49 degrees E 851.0

ft.; N 80 degrees E 3178.5 ft.; N 43 degrees E 600 ft.; N 2 degrees W

466.6 ft.; N 40 degrees W 500 ft.; N 50 degrees E 1080.0 ft.; S 81

degrees E 558.6 ft.; S 7 degrees E 655.0 ft.; S 29 degrees W 1005.0

ft.; S 5 degrees E 866.8 ft.; to the NE cor. of the Ruth Ingram 1000

acre tract on the S ROW line of a county rd.;

THENCE S 45 degrees W 9482.4 ft. with the N line of the Ruth

Ingram tract and the S line of said County rd. to the NW cor. of said

Ruth Ingram tract being the E ROW line of a county rd.;

THENCE S 34 degrees E 5485.0 ft. with the said E ROW line pass

the John Smolik NW cor. to the SE cor. of the Della Tips 2037.5 acre

tract across the county rd.;

THENCE S 42 degrees 30 minutes W 10,233.3 ft. across the said

county rd. to the Della Tips SE cor. and with the Della Tips S line

to the SW cor. of said tract;

THENCE N 45 degrees W 4675.0 ft. with the SW line of the Della

Tips tract pass the SE cor. of the H. H. Kerpeck tract to the NE cor.

of said Kerpeck tract;

THENCE S 45 degrees W with the said Kerpeck N line to the NW

cor. of said tract across a county rd. and with the S ROW line of

said rd. to a cor. in said rd.; 2378.4 ft. in all;

THENCE N 46 degrees W 1616.6 ft. across said county rd. and

with the E ROW line of said rd. being the W line of the L. K. Thigpen

201.24 acre tract to a point opposite S cor. of the C. Kerpeck tract

across said county rd.;

THENCE N 64 degrees W 1491.2 ft. across said county rd. pass

the said S cor. of the Kerpeck tract and with the Kerpeck S Line to a

cor. of the Kerpeck tract;

THENCE N 44 degrees W 1118.9 ft. with the Kerpeck W line to

the NW cor. of said tract in the S ROW line of a county rd.;

THENCE S 42 degrees W 2442.5 ft. with the said S ROW line

across a county rd. to the W ROW line of a county rd. being the SE

cor. of the Annie M. Loesch tract;

THENCE S 45 degrees W 771.3 ft. to the SW cor. of the said

Loesch tract;

THENCE N 45 degrees W 1927.4 ft. with the said Loesch W line

to an interior cor. of said tract;

THENCE S 45 degrees W 2249.7 ft. with the Annie M. Loesch S

line pass the W cor. of the said Loesch tract being the SE cor. of

the A. M. Green 175 ac. tract and with the S line of said Green tract

to the S cor. of said tract in the Verita and F. H. Korth 159.5 ac.

tract E line;

THENCE S 46 degrees E 1883.6 ft. with the Korth E line to the

SE cor. of same;

THENCE S 45 degrees W 2731.5 ft. with the said Korth S line

pass the SW cor. of same to the W ROW line of a county rd.;

THENCE N 46 degrees W 1181.2 ft. with the W line of said

county rd. to the SE cor. of the Temple Stapleton 50.2 ac. tract;

THENCE S 45 degrees W 1157.1 ft. with the Temple Stapleton S

line to the S cor. of said Stapleton tract;

THENCE N 45 degrees W 745.9 ft. with the Stapleton SW line to

an anterior cor. of said tract;

THENCE S 45 degrees W 2313.9 ft. with the Temple Stapleton S

line pass the SW cor. of same and with the E. Schroeder S line pass

the Common cor. between the said Schroeder SW cor. and the L. Roach

SW cor. with the L. Roach S line to the SW cor. of the said Roaach 1

tract;

THENCE N 45 degrees W 932.5 ft. with the Roach W line to the NW

cor. of the Roach tract being in the S line of the Mrs. E. A. Johnson

100 ac. tract;

THENCE S 45 degrees W 1157.1 ft. with the S line of the said

Johnson tract across the Overby rd. to the W ROW line of same;

THENCE N 45 degrees W 2957.6 ft. with the W ROW line of said

county rd. to the intersection of this ROW line with the Raymond

Whipple E line;

THENCE S 6 degrees E 3895.2 ft. with the E line of the Raymond

Whipple tract to the S cor. of same;

THENCE S 45 degrees W with the M. L. Chesnutt 409.0 ac. tract

S line across a county rd. to the SE cor. of the M. L. Chesnutt 155.5

ac. tract 2248.7 ft.;

THENCE N 46 degrees W 2488.9 ft. with the said 155.5 ac. tract

E line to the NE cor. of said tract;

THENCE S 44 degrees W with the said Chesnutt N line pass the

Joe Krawietz SW cor. pass the Chesnutt NW cor. being the E. Strawn

SW cor. with the Floyd Swoap N line pass the J. 0. Russell SW cor. to

the SW cor. of the M. T. Buckaloo 66.5 ac. tract 5177.8 ft. in all;

THENCE S 46 degrees E 1759.8 ft. with the said Swoap W line

being the E ROW line of a county rd. to a point opposite the SE cor.

of the R. A. David 108 ac. tract;

THENCE S 49 degrees W 2185.4 ft. with the David S line to the

SW cor. of same;

THENCE N 45 degrees W 1181.3 ft. with the David W line across

the old Hy. 181 to the W ROW line of same;

THENCE S 21 degrees and 10 minutes W 899.6 ft. with the said

ROW line to the S. cor. of the H. H. Schuenemann 123.42 ac. tract;

THENCE N 45 degrees W 1800.2 ft. with the Schuenemann W line

to an interior cor. of same;

THENCE N 82 degrees 45 minutes W 4155.3 ft. with the H. H.

Schuenemann S line pass the SW cor. with the W. T. Homeyer S line to

the SW cor. of the Homeyer 255 ac. tract;

THENCE S 3 degrees W 2146.9 ft. with the Mable Davis E line to

the S cor. of same being the N cor. of the W. S. Grunewald 79 ac.

tract;

THENCE S 14 degrees E 288.0 ft. with the Grunewald E line to

the SE cor. of same;

THENCE S 45 degrees W 6900.0 ft. with the Grunewald SE line to

the SW cor. of same in the E ROW line of a county rd. across said

county rd. and with the NW ROW line of the county rd. pass the R. W.

Jones et al. 268 ac. tract and the L. W. Scott 124.73 ac. tract to

the SW cor. of the L. W. Scott 62.37 ac. tract;

THENCE N 45 degrees W 3395.0 ft. with the Scott W line pass

the NW cor. of same to a point in the James H. Wright W line being

the SE cor. of the John Polson 136 ac. tract;

THENCE S 45 degrees W 3933.3 ft. with the John Polson S line

to the SW cor. of same in the E ROW line of county rd.;

THENCE N 45 degrees W 6366.6 ft. with the said county rd. E

line pass the John Polson NW cor. being the J. M. Ruhmann SW cor.,

pass the J. M. Ruhmann NW cor. and across State Hy. 72 to the SW cor.

of the John Beck 587.5 ac. tract;

THENCE S 46 degrees 15 minutes W with the NW ROW line of

St. Hy. 72 pass the O. L. Bagwell SW cor. pass the Tom M. Leggett SW

cor. to the SW cor. of the John W. Regmund 735.85 ac. tract;

THENCE N 45 degrees W 6100.0 ft. with the W line of the said

Regmund tract to the NW cor. of same being the SW cor. of the Geo.

Heider 205.4 ac. tract;

THENCE N 20 degrees W 4200.0 ft. with the Geo. Heider W line

across a county rd. to the SW cor. of the S. E. Crews 2643 ac. tract;

THENCE S 70 degrees W 1943.5 ft. across a county rd. and with

the S line of the Ida Carroll 112 ac. tract to the SW cor. of same;

THENCE N 20 degrees W 2625.0 ft. with the Ida Carroll W line

to the NW cor. of same in the Herbert Rudolph S line;

THENCE S 70 degrees W 1876.8 ft. to the SW cor. of the Herbert

Rudolph tract in the E ROW line of a county rd.;

THENCE N 20 degrees W with the E ROW line of the County rd.

pass the NW cor. of the Herbert Rudolph tract to the NW cor. of the

E. Rudolph 197.5 ac. tract;

THENCE N 15 degrees W 4075.0 ft. with the said E ROW line of

the county rd. to the NW cor. of the Edgar M. Ladewig 305.9 ac.

tract, across county rd. to a point in the S line of the A. N. Wells

292.5 ac. tract;

THENCE S 70 degrees W 2093.6 ft. with the Wells S line to the

SE cor. of same;

THENCE N 20 degrees W 3825.0 ft. with the Wells W line being

the E ROW line of a county rd.;

THENCE N 70 degrees E 1771.4 ft. with the Wells N line to the

SE cor. of the B. W. Klingeman tract in the N line of the Wells

tract;

THENCE N 20 degrees W 3666.6 ft. with the common line between

the said Klingeman tract and the Alex Kowald 200 ac. tract across a

county rd. to the S line of the Fred Klingeman tract;

THENCE S 70 degrees W 1563.5 ft. with the Klingeman S line to

the SW cor. of same;

THENCE N 20 degrees W 3000.0 ft. with the said Klingeman W

line to the NW cor. in the R. Best S line;

THENCE S 70 degrees W 2953.5 ft. with the said Best S line to

the SW cor. of same;

THENCE N 20 degrees W 5225.0 ft. with the Best W line being

the W line of the James Bradberry A-24 Original Grant to the NW cor.

of the Best tract;

THENCE N 70 degrees E 2451.4 ft. with the N line of the Best

tract to the SE cor. of the Horace L. Smith 238 ac. tract in the Best

N line;

THENCE N 20 degrees W 4450.0 ft. with the said Smith E line

being the D. B. Scott W line pass the NE cor. of the said Scott tract

across a county rd. to the SW cor. of the Alvin Ripps 169.5 ac. tract

being the SE cor. of the Vallie Jarvis tract;

THENCE S 70 degrees W 9468.5 ft. with the N ROW line of the

said county rd. pass the Vallie Jarvis SW cor. across a county rd.

pass the H. L. Smith SW cor. pass the Howard Stanfield S cor. to the

R. L. Gideon SW cor.;

THENCE N 40 degrees W 8333.3 ft. with the Gideon W line and

the E line of a county rd. pass the Herbert Weigang SW cor. pass the

Julius Hedtke SW cor. to the place of beginning, containing

80,158.23 acres of land, more or less.

ARTICLE 3. REPEALERS

SECTION 3.01. WILLACY COUNTY NAVIGATION DISTRICT. The

following statutes are repealed:

(1) Chapter 404, Acts of the 53rd Legislature, Regular

Session, 1953;

(2) Chapter 135, Acts of the 54th Legislature, Regular

Session, 1955;

(3) Chapter 141, Acts of the 55th Legislature, Regular

Session, 1957;

(4) Chapter 392, Acts of the 56th Legislature, Regular

Session, 1959;

(5) Sections 2 and 3, Chapter 449, Acts of the 56th

Legislature, Regular Session, 1959;

(6) Sections 2 and 3, Chapter 654, Acts of the 60th

Legislature, Regular Session, 1967; and

(7) Sections 2 and 3, Chapter 892, Acts of the 81st

Legislature, Regular Session, 2009.

SECTION 3.02. GUADALUPE-BLANCO RIVER AUTHORITY. The

following statutes are repealed:

(1) Chapter 75, Acts of the 43rd Legislature, 1st

Called Session, 1933;

(2) Chapter 45, Acts of the 58th Legislature, Regular

Session, 1963;

(3) Sections 2, 3, and 4, Chapter 432, Acts of the 61st

Legislature, Regular Session, 1969;

(4) Sections 2 and 3, Chapter 433, Acts of the 64th

Legislature, Regular Session, 1975; and

(5) Sections 10, 12, and 13, Chapter 22, Acts of the

86th Legislature, Regular Session, 2019.

SECTION 3.03. UPPER GUADALUPE RIVER AUTHORITY. The

following statutes are repealed:

(1) Chapter 5, page 1062, Special Laws, Acts of the

46th Legislature, Regular Session, 1939;

(2) Sections 1 and 2, Chapter 193, Acts of the 59th

Legislature, Regular Session, 1965;

(3) Section 2, Chapter 632, Acts of the 59th

Legislature, Regular Session, 1965;

(4) Section 6, Article IV, Chapter 484, Acts of the

68th Legislature, Regular Session, 1983;

(5) Section 2, Chapter 1059, Acts of the 68th

Legislature, Regular Session, 1983;

(6) Section 2, Chapter 830, Acts of the 75th

Legislature, Regular Session, 1997;

(7) Sections 2 and 3, Chapter 1544, Acts of the 76th

Legislature, Regular Session, 1999; and

(8) Sections 6, 7, and 8, Chapter 180, Acts of the 88th

Legislature, Regular Session, 2023.

SECTION 3.04. FRANKLIN COUNTY WATER DISTRICT. The

following statutes are repealed:

(1) Chapter 719, Acts of the 59th Legislature, Regular

Session, 1965;

(2) Chapter 308, Acts of the 60th Legislature, Regular

Session, 1967;

(3) Section 3, Chapter 412, Acts of the 69th

Legislature, Regular Session, 1985;

(4) Section 2, Chapter 59, Acts of the 72nd

Legislature, Regular Session, 1991; and

(5) Section 2, Chapter 3, Acts of the 75th

Legislature, Regular Session, 1997.

SECTION 3.05. ESCONDIDO WATERSHED DISTRICT. Sections 1, 2,

4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17, Chapter 364,

Acts of the 57th Legislature, Regular Session, 1961, are repealed.

ARTICLE 4. GENERAL MATTERS

SECTION 4.01. LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.

This Act is enacted under Section 43, Article III, Texas

Constitution. This Act is intended as a codification only, and no

substantive change in law is intended by this Act. This Act does

not increase or decrease the territory of any special district of

the state as those boundaries exist on the effective date of this

Act.

SECTION 4.02. PRESERVATION OF VALIDATION MADE BY PREVIOUS

LAW. (a) The repeal of a law, including a validating law, by this

Act does not remove, void, or otherwise affect in any manner a

validation under the repealed law. The validation is preserved and

continues to have the same effect that it would have if the law were

not repealed.

(b) Subsection (a) of this section does not diminish the

saving provisions prescribed by Section 311.031, Government Code.

SECTION 4.03. EFFECTIVE DATE. This Act takes effect April

1, 2027.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 1615 was passed by the House on May 7,

2025, by the following vote: Yeas 148, Nays 0, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 1615 was passed by the Senate on May

14, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor