Relating to the San Antonio River Authority.

89(R) HB 2692 - Enrolled version - Bill Text

H.B. No. 2692

AN ACT

relating to the San Antonio River Authority.

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

SECTION 1. Subtitle G, Title 6, Special District Local Laws

Code, is amended by adding Chapter 8513 to read as follows:

CHAPTER 8513. SAN ANTONIO RIVER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8513.0101. DEFINITIONS. In this chapter:

(1) "Authority" means the San Antonio River Authority.

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

(3)

"Commission" means the Texas Commission on

Environmental Quality.

(4) "Director" means a board member.

(5)

"Flood plain" means the area of the channel of a

river or stream and those portions of land abutting and adjacent to

the channel that are reasonably required to carry floodwaters.

(6)

"San Antonio River Basin" means all of the area

except for Bandera, Real, and Kerr Counties that has topographic

characteristics causing surface waters to flow into the San Antonio

River and its tributaries.

(7)

"State" means the State of Texas or any of its

agencies, departments, boards, political subdivisions, or other

entities.

Sec.

8513.0102.

NATURE OF AUTHORITY.

(a)

The authority is

a conservation and reclamation district under Section 59, Article

XVI, Texas Constitution.

(b)

The authority's creation is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution, including:

(1)

construction, maintenance, and operation of

navigable canals and waterways; and

(2)

control of the waters of all rivers, streams, and

tributaries of rivers and streams inside the authority.

Sec.

8513.0103.

FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

All land included in the authority will benefit by the exercise of

power conferred by this chapter.

Sec.

8513.0104.

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.

Sec.

8513.0105.

TERRITORY. Unless modified under

Subchapter J, Chapter 49, Water Code, or other law, the authority's

territory includes all of that part of this state in the boundaries

of Bexar, Wilson, Karnes, and Goliad Counties.

Sec.

8513.0106.

EFFECT OF CHAPTER ON CERTAIN PERSONS OR

ENTITIES. (a)

If any power granted to the authority by this

chapter overlaps or conflicts with any power of the

Guadalupe-Blanco River Authority, the power granted to the

Guadalupe-Blanco River Authority supersedes the power granted to

the authority by this chapter, unless the Guadalupe-Blanco River

Authority consents to the authority's exercise of the power.

(b)

No provision of this chapter divests any person of any

vested:

(1) riparian right;

(2)

right derived under an existing permit for the

appropriation and use of public waters issued by the commission; or

(3)

right derived under any certified filing with the

commission.

Sec.

8513.0107.

LIBERAL CONSTRUCTION OF CHAPTER.

This

chapter shall be liberally construed to effect its purposes.

Sec.

8513.0108.

CORRECTION OF INVALID PROCEDURES.

If the

board determines that any procedure under this chapter violates the

Texas Constitution or the United States Constitution, the board by

ordinance may provide an alternative procedure that conforms with

the constitution.

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec.

8513.0201.

DIRECTORS; TERMS; QUALIFICATIONS.

(a)

The

board consists of 12 directors elected as follows:

(1) two directors elected at large from Goliad County;

(2) two directors elected at large from Karnes County;

(3) two directors elected at large from Wilson County;

(4)

two directors elected at large from Bexar County;

and

(5)

one director elected from each single-member

district representing the four county commissioner precincts in

Bexar County.

(b)

Directors serve staggered four-year terms. An elected

director's term begins January 1 following the date of the

director's election.

(c) A director must:

(1) be at least 21 years of age;

(2) reside within the authority;

(3)

reside in the county from which the director is

elected or appointed; and

(4) possess the qualifications of a juror.

(d)

A director elected from a single-member district must

reside in the district from which the director is elected.

Sec.

8513.0202.

DIRECTOR ELECTIONS. (a)

The authority

shall hold an election to elect the appropriate number of directors

on the uniform election date in November of each odd-numbered year.

(b)

The placing of the names of the candidates on the

ballots shall be determined by lot.

A candidate or a designated

representative of the candidate may be present at the drawing.

(c)

In the event of a tie for any director position, the

winner shall be determined by a majority of the board.

(d)

Directors serving from single-member districts at the

time new single-member districts are adopted shall serve for the

remainder of the terms to which they were elected regardless of the

redistricting.

Sec.

8513.02025.

CERTAIN DIRECTOR TERMS. (a)

This section

applies only to the term of a director who is appointed or elected

on or after May 24, 2023.

(b)

The two at-large director positions for Bexar County

shall be scheduled for election on the November uniform election

date in 2023. The person who receives the highest number of votes

shall be elected to the first at-large Bexar County director

position and shall serve a four-year term beginning January 1,

2024, and ending December 31, 2027. An election shall be scheduled

for that position on the November uniform election date in 2027 and

every four years thereafter. The person who receives the second

highest number of votes shall be elected to the second at-large

Bexar County director position and shall serve a two-year term

beginning January 1, 2024, and ending December 31, 2025. An

election shall be scheduled for that position on the November

uniform election date in 2025 and every four years thereafter for a

four-year term beginning on January 1 of the year following each

election.

(c)

The following director positions shall be scheduled for

election on the November uniform election date in 2025 and every

four years thereafter, and the directors elected to each position

shall serve four-year terms beginning January 1 of the year

following each election:

(1)

the single-member district director elected from

Bexar County commissioners court precinct 1;

(2)

the single-member district director elected from

Bexar County commissioners court precinct 2;

(3)

the at-large director position for Karnes County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019;

(4)

the at-large director position for Goliad County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019; and

(5)

the at-large director position for Wilson County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2019.

(d)

The following director positions shall be scheduled for

election on the November uniform election date in 2027 and every

four years thereafter, and the directors elected to those director

positions shall serve four-year terms beginning January 1 of the

year following each election:

(1)

the single-member district director elected from

Bexar County commissioners court precinct 3;

(2)

the single-member district director elected from

Bexar County commissioners court precinct 4;

(3)

the at-large director position for Karnes County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021;

(4)

the at-large director position for Goliad County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021; and

(5)

the at-large director position for Wilson County

for which an election was held, or scheduled to be held but canceled

because of an unopposed candidate, in November 2021.

(e)

The members of the board of directors serving in the

director positions described by Subsections (b), (c), and (d) on

May 23, 2023, shall continue to serve until their successors have

been elected and qualified.

(f) This section expires September 1, 2029.

Sec.

8513.0203.

SUSPENSION AND REMOVAL. (a)

A director or

officer may be suspended or removed from office for:

(1) incompetency;

(2) official misconduct;

(3) official gross negligence;

(4) habitual drunkenness; or

(5)

nonattendance at six consecutive regular board

meetings.

(b)

A director or officer may not be suspended or removed

from office unless:

(1)

charges against the director or officer are filed

in writing; and

(2)

the director or officer is given an opportunity

for a fair hearing before the board.

(c)

An affirmative vote of not fewer than eight of the

directors is required to suspend or remove a director or officer.

Sec.

8513.0204.

VACANCY.

The governor, with the advice and

consent of the senate, shall fill a vacancy on the board for the

unexpired term.

Sec.

8513.0205.

BYLAWS. The board shall adopt bylaws for

the management of the authority's affairs.

Sec.

8513.0206.

ORDINANCES. (a) The board may, by a

majority and to the extent necessary to exercise the authority's

powers and rights, adopt an ordinance:

(1)

not adequately provided by Chapter 49 or 51, Water

Code;

(2)

germane and appropriate to the accomplishment and

purposes of this chapter; and

(3)

consistent with a specific power conferred on a

county, municipality, water improvement district, water control

and improvement district, drainage district, navigation district,

canal corporation, channel and dock corporation, deep water

corporation, railway corporation, terminal railway corporation,

telegraph and telephone corporation, or other similar entity.

(b)

The board is not required to provide notice before

adopting an ordinance, except as otherwise required for a regular

or special board meeting.

(c) The board:

(1)

shall file an adopted ordinance in the authority's

official records; and

(2)

may, if the board considers it necessary and

proper:

(A)

file certified copies of the ordinance in the

office of the county clerk in each county in the authority where the

ordinance applies; or

(B)

publish the ordinance at least once per week

for two weeks in a newspaper of general circulation in each county

where the ordinance applies.

(d)

An adopted ordinance takes effect after the filing

requirements of Subsection (c) are met.

(e)

After an ordinance takes effect, a county clerk with

whom a certified copy of the ordinance is filed under Subsection

(c)(2)(A) shall record the certified copy. The county clerk shall

charge the same fee for recording the certified copy as for

recording a deed of conveyance.

(f)

An ordinance granting a power or mode of procedure

adopted under this section does not limit the accomplishment of the

purposes of this chapter.

Sec.

8513.0207.

BOND REQUIREMENT FOR DIRECTORS AND

OFFICERS. (a)

Not later than the 15th day after the date of an

election or appointment of a director or officer, the director or

officer shall file a good and sufficient bond with the board

secretary.

(b) The bond must be:

(1) in the amount of $5,000;

(2) payable to the authority;

(3)

conditioned on the faithful performance of duties

as a director or officer; and

(4) subject to approval by the board secretary.

Sec.

8513.0208.

FILING OF OATH.

Before assuming the duties

of office, each director shall file with the board secretary a copy

of the constitutional oath of office taken by the director.

Sec.

8513.0209.

COMPENSATION OF DIRECTORS. (a)

A director

is entitled to receive reimbursement for reasonable expenses and an

allowance as provided under Section 49.060, Water Code.

(b)

A director is not entitled to receive a per diem

allowance for more than 60 days in a fiscal year.

(c)

In all areas of conflict with this section, Section

49.060, Water Code, takes precedence.

Sec.

8513.0210.

CERTAIN INTERESTS PROHIBITED. (a) A

director may not engage in a transaction with the authority for gain

or profit.

(b)

An officer of the authority may not have any interest,

direct or indirect, in any contract awarded by the authority.

Sec.

8513.0211.

OFFICERS. (a) The board shall appoint by

majority vote a chair, a vice chair, a secretary, a treasurer, and

other officers or assistant officers the board considers necessary.

(b)

The chair, the vice chair, the secretary, and the

treasurer must each be a director. Assistant officers are not

required to be directors.

(c) An officer shall serve a term of two years.

(d) A non-director assistant officer:

(1) holds office at the pleasure of the board; and

(2)

may be granted limited powers in the authority

bylaws.

(e)

The authority may appoint officers, prescribe their

duties, and set their compensation.

Sec.

8513.0212.

DIRECTOR TRAINING PROGRAM. (a)

A person

who is elected or 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 authority 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 disclosure of conflicts

of interest; and

(B)

other laws applicable to members of the

governing body of a river authority in performing their duties; and

(6)

any applicable ethics policies adopted by the

authority or the Texas Ethics Commission.

(c)

A person elected or 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 manager of the authority shall create a training

manual that includes the information required by Subsection (b).

The manager shall distribute a copy of the training manual annually

to each director.

Each director shall sign and submit to the

manager a statement acknowledging that the director has received

and reviewed the training manual.

Sec.

8513.0213.

MEETINGS. (a) Regular and special board

meetings shall be held as provided by general law and the bylaws.

(b)

Notice of regular and special board meetings shall be

given as required by general law and the bylaws.

(c) All meetings of the board shall be open to the public.

Sec.

8513.0214.

POLICIES TO SEPARATE POLICY-MAKING AND

STAFF FUNCTIONS. The board shall develop and implement policies

that clearly separate the board's policy-making responsibilities

and the management responsibilities of the manager and authority

staff.

Sec.

8513.0215.

AGENTS, EMPLOYEES, AND PROFESSIONAL

CONSULTANTS. (a)

The authority may appoint agents, employees, and

professional consultants, prescribe their duties, and set their

compensation.

(b)

An agent, employee, or professional consultant may not

have any interest, direct or indirect, in any contract awarded by

the authority.

Sec.

8513.0216.

MANAGER. (a)

The board may employ a

manager to be the authority's chief executive officer.

(b)

The board shall set the compensation to be paid to the

manager.

(c)

The manager shall employ and supervise, subject to

policies promulgated by the board, all employees, agents,

accountants, attorneys, engineers, and others rendering

professional services necessary to accomplish the purposes of this

chapter.

(d)

The manager may execute on behalf of the authority,

without specific board authorization, a contract for which

competitive bidding is not required. The manager may execute any

other contract with specific board authorization.

Sec.

8513.0217.

AUTHORITY'S DOMICILE AND OFFICE. The

general office and place of domicile of the authority shall be in

the City of San Antonio, Bexar County.

Sec.

8513.0218.

COMPLAINTS.

(a)

The authority shall

maintain a system to act promptly and efficiently on complaints

filed with the authority.

(b) The authority shall maintain information about:

(1) the parties to the complaint;

(2) the subject matter of the complaint;

(3)

a summary of the results of the review or

investigation of the complaint; and

(4) 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 its procedures for complaint investigation and

resolution.

Sec.

8513.0219.

PUBLIC TESTIMONY AT BOARD MEETINGS. 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 jurisdiction of the authority.

Sec.

8513.0220.

CONTRACT WITH BEXAR COUNTY. (a)

This

section applies only to a contract between the authority and the

Commissioners Court of Bexar County entered into before May 26,

1961, to finance the construction of certain flood control and soil

conservation works of improvement in Bexar County.

(b)

Except as provided by Subsection (c), the authority may

not spend any income or revenue derived from the contract for a

purpose other than a purpose specifically provided for by the

contract.

(c)

The board may allocate a reasonable amount of income or

revenue derived from the contract to pay for:

(1) authority overhead costs;

(2) operational costs; and

(3) fees of directors who reside in Bexar County.

SUBCHAPTER C. GENERAL POWERS AND DUTIES

Sec. 8513.0301. GENERAL POWERS. (a) The authority shall:

(1) administer this chapter; and

(2)

use the authority's facilities and powers to

accomplish the purposes of this chapter.

(b) The authority may:

(1)

exercise the powers, rights, privileges, and

functions in this chapter;

(2)

exercise all powers, rights, privileges, and

functions necessary or convenient for accomplishing the purposes of

this chapter; and

(3)

perform any other act necessary or convenient to

the exercise of the powers, rights, privileges, and functions

conferred by this chapter or other law.

(c)

The authority has the powers and rights and is subject

to the regulations for government and procedure contained in

Chapters 49 and 51, Water Code.

(d)

The authority may spend any amount reasonably necessary

or expedient for seeking cooperation from the federal government or

any other person in accomplishing the purposes of this chapter.

Sec.

8513.0302.

TITLE AND RIGHT OF CONTROL; TRUST.

(a)

The

authority is vested with such title and right of control to the

extent the state has, or may have, title and right of control of:

(1)

the natural bed and banks of the entirety of the

San Antonio River;

(2)

a tributary of the San Antonio River inside the

authority; and

(3)

the natural beds and banks of any navigable stream

or tributary inside the authority.

(b)

The authority's title and right of control shall be in

trust for the accomplishment of the purposes of this chapter.

(c)

The authority may use or dispose of land or rights,

including any proceeds, income, revenue, or trading values received

from the use or disposition, that may be reasonably required for or

aid the accomplishment of the purposes of this chapter.

Sec.

8513.0303.

POWERS RELATING TO CONSERVATION AND

BENEFICIAL USE OF WATER.

(a)

The authority has the powers of this

state under Section 59, Article XVI, Texas Constitution, to:

(1) effectuate:

(A)

the construction, maintenance, and operation

of navigable canals or waterways;

(B) flood control;

(C)

the conservation and use of ground, storm,

flood, and unappropriated flow waters in the authority for all

beneficial purposes;

(D) irrigation;

(E) soil conservation;

(F) sewage treatment;

(G) pollution prevention; and

(H) forestation and reforestation;

(2)

encourage and develop parks and recreational

facilities;

(3) preserve fish; and

(4)

do all things that are required to accomplish the

purposes of this section.

(b)

The powers described by Subsection (a) are subject only

to:

(1)

the legislature's policy declarations regarding

water use;

(2)

the commission's continuing supervision and

control;

(3)

the provisions of Section 11.024, Water Code,

prescribing the priorities of water uses; and

(4)

the water rights acquired by municipalities and

other users.

(c)

The authority shall store and conserve to the greatest

beneficial use the storm, flood, and unappropriated flow waters of

any river or stream or tributary of a river or stream within the

authority to prevent the escape of water without maximum beneficial

use inside or outside the authority's boundaries.

Sec.

8513.0304.

POWERS REGARDING CANALS, WATERWAYS, AND

RELATED FACILITIES.

The authority may:

(1)

promote, construct, maintain and operate, make

practicable, or aid and encourage the construction, maintenance,

and operation of navigable canals or waterways and all navigational

systems or facilities auxiliary to navigable canals or waterways

using the natural bed and banks of the San Antonio River, where

practicable, and then traversing a route the authority may find to

be more feasible and practicable to connect the San Antonio River

with any new navigable canals to be constructed in the lower reaches

of the San Antonio River or to connect the San Antonio River with

the Gulf Intracoastal Waterway, the San Antonio Bay, or the Gulf of

Mexico;

(2)

construct a system of artificial waterways and

canals, together with all locks and other works, structures, and

artificial facilities as may be necessary and convenient for the

construction, maintenance, and operation of:

(A) navigable canals or waterways; and

(B)

all navigational systems and facilities

auxiliary to navigable canals or waterways; and

(3)

in the case of construction of navigable canals or

waterways and all auxiliary navigational systems or facilities by

the federal government or otherwise:

(A)

construct, maintain, and operate lateral

connecting canals and turning basins to serve local needs; and

(B)

provide, construct, acquire, take over,

maintain, operate, develop, lease, regulate, or by franchise

control wharves, docks, warehouses, grain elevators, bunkering

facilities, belt or terminal railroads, floating plants,

lighterage, towing facilities, and all other facilities incident to

or in aid of the efficient operation and development of canals or

waterways and all navigational systems or auxiliary facilities and

ports, whether on land or water.

Sec.

8513.0305.

FEDERALLY CONSTRUCTED OR MAINTAINED

CANALS, WATERWAYS, AND FACILITIES. If the construction or

maintenance and operation of navigable canals or waterways and all

navigational systems or facilities auxiliary to navigable canals or

waterways on the San Antonio River is taken over by the federal

government or an agency of the federal government, the authority

may:

(1)

enter into contracts that may be required by the

federal government, including assignments and transfers of

property, property rights, easements, and privileges; and

(2)

take any other action required by the federal

government or an agency of the federal government.

Sec.

8513.0306.

POWER TO CONTROL, DEVELOP, STORE, AND USE

WATER FOR NAVIGATIONAL USE.

(a)

The authority may control,

develop, store, and use the natural flow and floodwaters of the San

Antonio River and its tributaries for the purpose of operating and

maintaining:

(1) navigable canals or waterways; and

(2)

navigational systems or facilities auxiliary to

navigable canals or waterways.

(b)

The navigational use of water authorized by Subsection

(a) is subordinate and incidental to consumptive use of water.

Sec.

8513.0307.

POWERS RELATING TO PARKS, RECREATIONAL

FACILITIES, AND PRESERVATION OF FISH AND WILDLIFE.

(a)

The

authority may acquire:

(1)

additional land adjacent to a permanent

improvement constructed inside the authority for the purpose of

developing parks or recreational facilities; and

(2)

necessary rights-of-way to construct, operate,

and maintain roads necessary for ingress and egress to an area

described by Subdivision (1) or to a fish or wildlife preserve or

reserve.

(b)

The authority may provide recreational facilities and

services and may enter into a contract or agreement with any person

for the operation or maintenance of a park or recreational

facility.

(c)

The preservation of fish shall be in accordance with any

rules prescribed by the Parks and Wildlife Department.

Sec.

8513.0308.

POWERS RELATING TO FLOOD CONTROL AND FLOOD

PLAIN MANAGEMENT. (a)

The authority shall prevent and aid in the

prevention of damage to persons and property by the overflow of any

rivers, streams, or tributaries of those rivers and streams within

the authority.

(b)

The authority may study, designate, and regulate flood

plains within the authority.

Sec.

8513.0309.

ACQUISITION OF WATER OR WATER RIGHTS.

(a)

The authority may acquire water appropriation permits or certified

filings within or outside the authority directly from the

commission or from permit owners.

(b)

The authority may purchase water, water supply

facilities, or conservation storage capacity from any person.

Sec.

8513.0310.

GENERAL WATER SUPPLY POWERS.

(a)

The

authority, inside or outside its boundaries, may:

(1)

construct, acquire, equip, acquire storage rights

at, operate, or maintain a dam or reservoir;

(2)

construct, operate, maintain, or otherwise

provide water supply lines, water purification, and water pumping

systems and facilities;

(3)

provide water supply for municipalities,

including selling water and standby service to any person;

(4)

provide water for irrigation of lands and the

development of commercial and industrial enterprises; and

(5)

acquire storage capacity in any dam constructed or

to be constructed by or with the assistance of this state or the

United States from any person, this state, or the United States.

(b) The authority may bring water into the authority.

(c)

It is the intent of this chapter that the authority is

primarily concerned with the conservation, control, storage,

distribution, and sale of water in bulk quantities in the public

interest and only incidentally with the retail sale of water

insofar as it does not compete with municipal water distributors

and then only when necessary or convenient as a service to the

public.

Sec.

8513.0311.

CONTRACTS TO SUPPLY WATER AND OPERATE

FACILITIES.

(a)

The authority may contract with a user of water

inside or outside the authority for services for which the

authority may charge, including standby service and delivery of

water.

(b)

The authority may contract with any person in the manner

provided by Section 552.020, Local Government Code, for:

(1) constructing:

(A) reservoirs;

(B) dams;

(C) water supply lines; and

(D)

water purification and pumping facilities;

and

(2) furnishing water supply service.

(c)

A contract under Subsection (b) may provide for the

operation, maintenance, and ownership of property subject to the

contract.

Sec.

8513.0312.

POWERS RELATING TO SOIL CONSERVATION. (a)

The authority may act as a local sponsoring agent for or otherwise

aid and supplement upstream soil and water conservation and flood

prevention projects authorized by a state or federal agency in

conjunction with a soil and water conservation district.

(b)

The authority may make arrangements satisfactory to the

United States Secretary of Agriculture to defray the cost of

maintaining or operating a project under Subsection (a). An

arrangement made under this section must be in accordance with

regulations presented by the secretary of agriculture.

(c)

Any portion of the total construction costs of a project

described by Subsection (a) allocable to flood control or soil

conservation shall be paid for or financed by money originating in

the county in which the project is situated. The money may be of any

kind, except from a tax imposed under Subchapter F.

Sec.

8513.0313.

WASTE MANAGEMENT. (a) As a necessary aid

to the conservation, control, preservation, purification, and

distribution of surface water and groundwater within the authority,

the authority may, within the San Antonio River Basin:

(1)

construct, own, operate, maintain, or otherwise

provide sewage gathering, treatment, and disposal services,

including solid waste disposal services;

(2)

charge for services described by Subdivision (1);

and

(3)

make contracts with counties, municipalities, and

others regarding services described by Subdivision (1) or charges

described by Subdivision (2).

(b)

The authority may not exercise the powers described by

Subsection (a) in Kerr, Real, or Bandera County unless consented to

by a majority vote of the commissioners court of that county.

Sec.

8513.0314.

POLLUTION PREVENTION. (a) The authority

may study, correct, and control pollution, including natural,

artificial, organic, inorganic, and thermal pollution, of the

groundwater and surface water within the San Antonio River Basin.

(b)

The authority may not adopt or enforce an ordinance

regarding pollution in any county outside the authority's

boundaries.

Sec.

8513.0315.

FORESTATION AND REFORESTATION. The

authority may forest, reforest, or aid in foresting or reforesting

of all areas within the authority.

Sec.

8513.0316.

GENERAL AUTHORITY TO MAKE CONTRACTS AND

EXECUTE INSTRUMENTS. The authority may enter into a contract or

execute an instrument necessary or convenient to exercising a

power, right, privilege, or function conferred on the authority by

this chapter.

Sec.

8513.0317.

AWARD OF CERTAIN WATER SUPPLY CONTRACTS.

(a) This section applies to:

(1) a wholesale contract for:

(A)

the sale, purchase, procurement,

distribution, or supply of water or conservation storage capacity;

or

(B)

construction of a navigable canal or

waterway; or

(2)

a contract authorized under Section 561.003, Local

Government Code.

(b)

Before entering into a contract under this section, the

manager shall publish notice describing the general nature of the

contract in a newspaper of general circulation in each county

within the authority where the contract is to have effect.

(c)

The board may consider and act on a contract at any

regular board meeting following the last date of publication of

notice required under this section.

(d)

The board shall confirm or ratify a contract by a

majority vote.

(e)

A contract may be the sole basis or a supplement to the

basis for securing a bond of the authority.

Sec.

8513.0318.

AWARD OF CERTAIN CONSTRUCTION AND SERVICE

CONTRACTS. (a) The board shall award any construction,

maintenance, operation, or repair contract, contract for the

purchase of material, equipment, or supplies, or contract for

services if the contract will require an estimated expenditure of

more than the maximum amount for which competitive bidding is

required by Chapter 49, Water Code, to the lowest and best bidder.

(b) The board:

(1) shall:

(A)

before awarding a contract under this

section, publish notice to bidders once each week for two

consecutive weeks; and

(B)

adopt bylaws for the publication of notice to

bidders and any related procedures; and

(2)

may prescribe the amount of estimated expenditures

subject to competitive bidding.

(c)

In the event of an emergency, the authority may award a

contract necessary to protect and preserve the public health and

welfare or the authority's property without using bidding

procedures.

(d)

A director is ineligible to submit a bid for a contract

under this section.

(e) Notwithstanding this section, the authority may:

(1)

purchase surplus property from the United States

by negotiated contract and without advertising for bids; and

(2) use any procurement method under:

(A) Chapter 49, Water Code; or

(B) other applicable general law.

(f)

This section does not apply to a purchase contract, a

procurement contract, or a contract described by Section 49.278,

Water Code.

Sec.

8513.0319.

ACQUISITION, MAINTENANCE, AND OPERATION OF

PROPERTY; EMINENT DOMAIN. (a) The authority may acquire by

purchase, lease, gift, or any other manner and maintain, use, and

operate property of any kind inside or outside the authority

necessary to the exercise of the powers, rights, privileges, and

functions conferred on the authority by this chapter and by the

exercise of the power of eminent domain in the manner provided by

Subsection (b).

(b)

The authority may exercise the power of eminent domain

in the manner provided by the general law applicable to a district

created under Section 59, Article XVI, Texas Constitution.

(c)

The authority's authority under this section to

exercise the power of eminent domain expired on September 1, 2013,

unless the authority submitted a letter to the comptroller in

accordance with Section 2206.101(b), Government Code, not later

than December 31, 2012.

Sec.

8513.0320.

PRELIMINARY INVESTIGATIONS AND SURVEYS.

(a) The authority may make preliminary investigations and surveys

in the manner and for the purposes specified in Chapters 49 and 51,

Water Code, or other applicable general law.

(b)

The authority may make a preliminary investigation or

survey independently at its own cost or jointly with others or may

contribute to the cost of a preliminary investigation or survey

made by another.

(c)

For purposes of procuring cooperation by the federal

government, any project lawfully within the scope of the purposes

of this chapter may be approved for construction as a federal

project under such contractual terms as may be demanded by the

United States Congress.

Sec.

8513.0321.

SALE, LEASE, MORTGAGE, OR OTHER DISPOSITION

OF AUTHORITY PROPERTY. (a) The authority may not:

(1)

mortgage or otherwise encumber authority property

of any kind, or any interest in authority property; or

(2)

acquire any property or interest in property

subject to a mortgage or conditional sale.

(b)

Subsection (a) does not prevent pledging authority

revenue or income of any kind, except an ad valorem tax imposed by

the authority under Section 8513.0601.

(c)

This chapter does not authorize the sale, lease, or

other disposition of authority property of any kind, or an interest

in authority property, by the authority or a receiver of any

authority property unless authorized under this chapter or

applicable general law.

(d)

Notwithstanding Subsection (c), the authority may sell

or otherwise dispose of authority property of any kind, or an

interest in authority property, if the board, by the affirmative

vote of a majority of members of the board present at a regular or

special meeting, determines that the property or interest is not

convenient to the business of the authority and is surplus.

(e)

The board shall publish notice of a proposed sale once

each week for two consecutive weeks in a newspaper of general

circulation in the county or counties where the property or

interest is located if:

(1)

the appraised value of the property or interest

exceeds $5,000; and

(2)

the property or interest is not partial or total

consideration in a transaction for the exchange of property.

(f)

Authority property is exempt from forced sale. The sale

of authority property under a judgment rendered in a suit is

prohibited.

Sec.

8513.0322.

OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;

RELOCATION OF ROADS. The authority may overflow and inundate any

public land or public property and require the relocation of a road

or highway in the manner and to the extent permitted to a district

organized under general law pursuant to Section 59, Article XVI,

Texas Constitution.

Sec.

8513.0323.

COST OF RELOCATING OR ALTERING PROPERTY.

If the authority'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 railroad or street railway,

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

expense.

Sec.

8513.0324.

CONSTRUCTION, MAINTENANCE, AND OPERATION

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

maintain, and reconstruct, cause to be constructed, extended,

improved, maintained, and reconstructed, and use and operate

facilities of any kind necessary or convenient to the exercise of

the authority's powers, rights, privileges, and functions.

Sec.

8513.0325.

FRANCHISES AND RIGHTS RELATING TO NAVIGABLE

CANALS AND WATERWAYS. (a) The authority may grant a franchise or

right to any person for the use of navigable canals or waterways and

all auxiliary navigational systems or facilities to aid navigation

of navigable canals or waterways of the San Antonio River.

(b)

Unless granted a franchise by the authority, a person

may not provide, maintain, or operate a facility or aid of

navigation connected with a navigable canal or waterway described

by Subsection (a) or an auxiliary navigational system or facility

that is intended for public use.

(c)

The board may grant a franchise by ordinance. A

franchise:

(1) may not exceed a term of 50 years; and

(2)

may be for the design, construction, repair,

enlargement, alteration, maintenance, operation of, and service

from or use of any facility to be provided for use in navigation on

navigable canals or waterways and all auxiliary navigational

systems or facilities, whether on land or in or on water.

(d) An ordinance granting a franchise:

(1) must:

(A) contain provisions:

(i)

adequate to regulate the fees, tolls,

rates, or exactions to be demanded for the use of, or service to be

rendered by any means or facility to be provided or operated under,

the franchise; and

(ii)

reasonably required to procure service

adequate to serve the public necessity and convenience; and

(B)

be uniform, reasonable, and without

discrimination against any person with regard to any charges or

conditions of use or service; and

(2) may:

(A)

contain provisions for the payment of

reasonable fees or other charges to be paid to the authority; and

(B)

provide reasonable and commensurate

penalties as provided by Section 49.004, Water Code, to procure

observance of the conditions of a franchise granted or compliance

with the rules established by the ordinance.

(e) The board may:

(1)

require uniform and adequate analytic accounting

systems and forms and periodic reports based on those systems and

forms;

(2) audit a franchise holder;

(3)

provide for other reasonable regulations designed

to protect the public; and

(4) by ordinance:

(A) establish rules necessary or designed to:

(i)

protect physical property owned by the

authority or owned or operated by a franchise holder; or

(ii)

effect the safety or efficient use of

property described by Subparagraph (i); and

(B)

provide for reasonable and commensurate

penalties for a violation of this section, as provided by Section

49.004, Water Code.

(f)

Unless otherwise provided, a franchise granted under

this section may be revoked or suspended only by order of a district

court within the county in which the authority may maintain its

general office.

Sec.

8513.0326.

CONCESSIONS AND FRANCHISES RELATING TO

WORKS OF IMPROVEMENT, PARKS, RECREATIONAL FACILITIES, AND FISH OR

WILDLIFE PRESERVES AND RESERVES. The authority may grant to any

person a concession or franchise on the premises of any work of

improvement, park, recreational facility, or fish or wildlife

preserve or reserve.

Sec.

8513.0327.

OFFICIAL NEWSPAPER. The authority may

designate an official newspaper in each county in the authority. An

official newspaper must have general circulation in the county in

which the newspaper is situated.

Sec.

8513.0328.

AUTHORITY CONSTABULARY. (a) The authority

may constitute and maintain an independent constabulary.

(b)

A constabulary constituted under this section is

subject to the oath and bond requirements of a county sheriff under

Section 85.001, Local Government Code.

(c)

A constabulary shall police authority property and

facilities controlled by the authority.

(d) A constabulary may make arrests:

(1)

to prevent injury to authority property and

facilities controlled by the authority or for a violation of a penal

ordinance of the authority; and

(2)

inside or outside the authority, upon complaint or

indictment for a violation of a penal ordinance of the authority.

Sec.

8513.0329.

STATE SUPERVISION AND APPROVAL. (a) The

commission shall cooperate with the authority to:

(1) make investigations and plans; and

(2)

to the extent provided by Subsection (b), approve

investigations and plans for improvements provided by the

authority.

(b)

This section applies only to commission approval of

plans that are appropriate under general law.

(c)

Except for a plan regarding the use of water that is

permitted by the state, a plan for improvements adopted by the

federal government controls.

Sec.

8513.0330.

COORDINATION WITH NONPROFIT ORGANIZATION.

(a) In this section, "affiliated nonprofit organization" means a

nonprofit organization:

(1) created by the authority; or

(2)

for which the authority, board, or authority

employees have a right to appoint one or more of the members of the

nonprofit organization's governing body.

(b)

The authority may contract or otherwise coordinate with

a nonprofit organization, including an affiliated nonprofit

organization, to accomplish the purposes of the authority.

(c)

Directors may not constitute a majority of the board of

directors or other governing body of an affiliated nonprofit

organization. An authority employee may not serve on the board of

directors or other governing body of an affiliated nonprofit

organization.

(d)

The board shall develop a policy regarding fund-raising

activities of a nonprofit organization that enters into a contract

or otherwise coordinates with the authority. The policy must:

(1)

include acceptable and prohibited fund-raising

activities;

(2)

specify how fund-raising is conducted and

supervised; and

(3)

include criteria for seeking and selecting

corporate sponsors to ensure that sponsorships serve the public

interest and are consistent with the purposes of the authority.

(e)

A memorandum of understanding between the authority and

an affiliated nonprofit organization entered into under this

section must include the policy developed under Subsection (d).

SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW

PROVISIONS

Sec.

8513.0401.

ADOPTION OF RULES. The authority may by

ordinance adopt reasonable rules to:

(1) carry out this chapter;

(2)

protect and secure authority property and works of

improvement; and

(3)

regulate pollution, residence, hunting, fishing,

boating, and camping, and any other recreational and business

privileges on any navigable river or reservoir in the authority or

on any land owned by the authority.

Sec.

8513.0402.

ENFORCEMENT OF RULES; PENALTY.

The

authority by rule may prescribe reasonable and commensurate

penalties for the violation of an authority rule, as provided by

Section 49.004, Water Code.

Sec.

8513.0403.

NOTICE OF RULE PROVIDING PENALTY.

(a)

If

the authority adopts a rule that provides a penalty, the authority

must publish a substantive statement of the rule and the penalty

once a week for two consecutive weeks in a newspaper of general

circulation in each county in which the rule applies.

(b)

The substantive statement must be as condensed as

possible so that the act prohibited by the rule can be easily

understood.

(c)

The substantive statement may include notice of any

number of rules.

(d) The notice must state that:

(1)

a person who violates the rule is subject to a

penalty; and

(2)

the rule is on file in the authority's principal

office, where the rule may be read by any interested person.

(e)

A rule takes effect on the fifth day after the date of

the second publication of the statement under this section.

Sec.

8513.0404.

JUDICIAL NOTICE OF RULES. A court shall

take judicial notice of a rule adopted under this subchapter and

published as required by Section 8513.0403.

Sec.

8513.0405.

RECOVERY OF LITIGATION COSTS. Section

49.004, Water Code, governs the recovery of costs incurred by the

authority in any suit by the authority to enforce its rules.

Sec.

8513.0406.

APPEAL BOND NOT REQUIRED. The authority is

not required to give bond on any appeal from judgment in any court.

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec.

8513.0501.

OBLIGATION PAYABLE. A debt, liability, or

obligation of the authority for the payment of money, however

entered into or incurred and whether arising from an express or

implied contract or otherwise, is payable solely:

(1)

out of the revenue received by the authority with

respect to its properties; or

(2)

from any other money or income from any source

coming into the authority's possession, including proceeds of sale

of bonds.

Sec.

8513.0502.

FISCAL YEAR. The authority's fiscal year

ends on September 30 of each year.

SUBCHAPTER F. TAX PROVISIONS

Sec.

8513.0601.

AUTHORITY TO IMPOSE AD VALOREM TAX. (a)

The authority may impose an ad valorem tax throughout the territory

of the authority at a rate not to exceed the rate approved at an

election held in accordance with Section 8513.0602 for:

(1)

the maintenance of the authority and its

improvements;

(2) general administration; or

(3)

planning and other services with respect to any of

the purposes, rights, privileges, and functions of the authority.

(b) The tax may not:

(1) be used to pay for or finance:

(A)

the construction of a dam, reservoir, levee,

channel, pipeline, or other major physical work of the authority;

(B)

the cost or expenses of a right-of-way

acquisition; or

(C)

damages awarded by a court for a suit brought

under Section 17, Article I, Texas Constitution; or

(2)

be pledged to any issue of or the redemption of

bonds authorized under Section 8513.0702.

Sec.

8513.0602.

ELECTION FOR AD VALOREM TAX. (a) The board

may impose an ad valorem tax within the maximum tax rate approved at

the election for a purpose authorized by this subchapter if the tax

is approved at an election held in the authority by a majority of

the votes cast:

(1) throughout the authority; and

(2) in any three counties in the authority.

(b)

The election must be ordered by ordinance of the board.

The ordinance must include for each applicable county in the

authority the polling places in that county where the election is to

be held.

Sec.

8513.0603.

PUBLIC HEARING; NOTICE. (a) If the board

orders an election under Section 8513.0602, the board must hold a

public hearing in each county in the authority to discuss the

proposed tax issue.

(b) Each public hearing must be held:

(1)

not less than 10 days before the date of the

scheduled election; and

(2)

not more than 25 days before the date of the

scheduled election.

(c)

Notice of the public hearing must be given by publishing

the notice in at least one newspaper of general circulation in each

county where the hearing is to be held. The notice must:

(1)

be published at least 10 days before the date of

the hearing; and

(2)

include the time, day, date, place, and purpose of

the hearing.

Sec.

8513.0604.

MAXIMUM TAX RATE. The maximum rate of the

tax that may be imposed under this subchapter for any year is two

cents on each $100 of assessed valuation of taxable property.

Sec.

8513.0605.

ASSESSMENT AND COLLECTION OF TAXES. (a)

The authority's tax rate shall be uniform throughout the territory

of the authority. The chair and secretary of the board shall

certify the tax rate to the assessor-collector of each included

county.

(b)

The fee of each county tax assessor-collector for

assessing and collecting the authority's taxes may not exceed two

percent of the taxes collected, to be paid over and disbursed in

each county in the same manner as other fees of office.

Sec.

8513.0606.

LEGISLATIVE INTENT. It is the intent of the

legislature that:

(1) an ad valorem tax imposed by the authority:

(A)

enables the authority to accomplish its

purposes, including the maximum development of the authority's soil

and water resources, it being hereby found and determined that the

benefits to be realized from the maximum development can be

obtained only through area-wide participation and planning; and

(B)

may be used to pay for the operation, repair,

or maintenance of any flood control, soil conservation, watershed

protection, or erosion structure or work of improvement constructed

in cooperation with the federal government, provided that any

operation, repair, or maintenance cost shall be paid for out of

taxes thus collected in the county in which the particular

structure or work of improvement is situated; and

(2)

the construction of any dam, reservoir, levee,

channel, pipeline, or other major physical work of the authority

shall be paid for or financed by revenue bonds of the authority to

be redeemed either by the sale of services or by taxes to be imposed

by a county or municipality and paid over to the authority as an

independent contractor of the county or municipality.

Sec.

8513.0607.

APPLICABILITY OF SUBCHAPTER. This

subchapter does not apply to a tax imposed under Subchapter H.

SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS

Sec.

8513.0701.

BORROWED MONEY AND GRANTS. (a) The

authority may:

(1)

borrow money for the authority's corporate

purposes;

(2)

execute proper notes and other evidence of

indebtedness;

(3)

borrow money or accept a grant from the United

States or this state and, in connection with the loan or grant,

enter into any agreement the United States or the corporation or

agency may require;

(4)

make and issue bonds for money borrowed, in the

manner and to the extent provided by Sections 8513.0702, 8513.0703,

8513.0704, 8513.0705, and 8513.0706; and

(5)

participate in and be the beneficiary of any plan

that may be evolved by this state or the United States for

guaranteeing or otherwise subsidizing the authority's obligations.

(b)

After an ad valorem tax is approved at an election held

under Section 8513.0602, the board may borrow money payable from

the tax and may evidence the loan by a note given in the authority's

name.

Sec.

8513.0702.

POWER TO ISSUE BONDS. (a) For the purpose

of constructing improvements related to the exercise of any power

conferred on the authority by law, the authority may, without an

election, issue bonds secured by a pledge of revenues of the

authority without reference to their source and with the priority

of liens prescribed in the proceedings authorizing the issuance of

the bonds.

(b)

The bonds must be authorized by a board resolution

concurred in by at least eight directors.

Sec. 8513.0703. TERMS OF ISSUANCE. Authority bonds may be:

(1) sold for cash;

(2)

issued on terms the board determines in exchange

for any property, or any interest in property, that the board

considers necessary or convenient for the corporate purpose for

which the bonds are issued; or

(3)

issued in exchange for principal amounts or other

obligations of the authority, whether matured or unmatured.

Sec.

8513.0704.

DEPOSIT OF PROCEEDS. The proceeds of sale

of authority bonds may be deposited in one or more banks or trust

companies and may be paid out according to the terms on which the

authority and the purchasers of the bonds agree.

Sec.

8513.0705.

RESOLUTION PROVISIONS. (a) A resolution

authorizing bonds may contain provisions approved by the board that

are not inconsistent with this chapter, including provisions:

(1)

reserving the right to redeem the bonds at a time,

in an amount, and at a price not to exceed 105 percent of the

principal amount of the bonds, plus accrued interest;

(2)

providing for the setting aside of sinking funds

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

(3)

securing the payment of the principal of and

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

payments associated with the bonds by pledging 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 issued, or the proceeds of the bonds, may be

applied;

(5)

agreeing to set and collect rates and charges

sufficient to produce net revenue adequate to pay the items

described by Subdivisions (1), (2), and (3), and prescribing the

use and disposition of all revenue;

(6)

prescribing limitations on the issuance of

additional bonds and on the agreements that may be made with the

purchasers and successive holders of those bonds;

(7)

regarding the construction, extension,

improvement, reconstruction, operation, maintenance, and repair of

the authority's properties and the carrying of insurance on all or

any part of those properties covering:

(A)

loss, damage, or loss of use and

reconstruction, operation, maintenance, and repair; and

(B)

loss, damage, or loss of use and occupancy

resulting from specified risks;

(8)

setting the procedure by which the authority may

change the terms of a contract with the bondholders, the amount of

bonds the holders of which must consent to that change, and the

manner in which the consent may be given; and

(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 of the agreements authorized by this chapter to be

made with or for the benefit of the bondholders and any other

provisions that are customary in such indentures or agreements.

(b)

A provision authorized by this section that is contained

in a bond resolution is part of the contract between the authority

and the bondholders.

Sec.

8513.0706.

DEFAULT PROCEDURES. (a) This section

applies only to a default in:

(1)

the payment of the interest on bonds as the

interest becomes due and payable;

(2)

the payment of the principal of bonds as they

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

redemption, or otherwise; 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 in 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)

by mandamus or other suit, action, or proceeding

at law or in equity, enforce all rights of the bondholders;

(2)

bring suit on the bonds or the appurtenant

coupons;

(3)

by action or suit in equity, require the authority

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

bondholders;

(4)

by action or suit in equity, enjoin 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 made good, 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 a suit, 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)

set, collect, and receive rates and charges

sufficient to provide revenue adequate to pay the items specified

by Sections 8513.0705(a)(1), (2), and (3) and the costs and

disbursements of the suit, action, or proceeding; and

(4)

apply the revenue in conformity with this chapter

and the resolution authorizing the bonds.

(e)

In a suit, 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 Bexar County have jurisdiction of a suit,

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

of all property involved in the suit, 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.

Sec.

8513.0707.

POWER OF AUTHORITY TO PURCHASE BONDS ISSUED

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

authority may purchase bonds issued by it at a price not exceeding

the redemption price applicable at the time of 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

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

Sec.

8513.0708.

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.

SUBCHAPTER H.

POLLUTION CONTROL DISTRICT

Sec.

8513.0801.

POWER TO ESTABLISH POLLUTION CONTROL

DISTRICT. (a) The authority may establish one or more pollution

control districts for the purpose of accomplishing any of the

powers, purposes, rights, or privileges vested in the authority.

(b)

A pollution control district may be established by

resolution of the board.

Sec.

8513.0802.

RESOLUTION PROCEDURES CALLING FOR CREATION

OF POLLUTION CONTROL DISTRICT. (a) A resolution of the board

calling for the creation of a pollution control district must:

(1)

define the boundaries of the proposed district;

and

(2)

set a time and place for a public hearing on the

matters described in the resolution.

(b)

If the authority does not intend to issue bonds on

behalf of the proposed district, in addition to the requirements of

Subsection (a), the resolution must declare taxes for the

maintenance of the authority and the authority's improvements shall

be imposed on the taxable property in the proposed district.

(c)

If the authority intends to issue bonds on behalf of the

proposed district, in addition to the requirements of Subsection

(a), the resolution must:

(1)

estimate the principal amount and state the

purpose of those bonds; and

(2)

declare that taxes for the payment of bonded

indebtedness shall be imposed exclusively on the taxable property

in the proposed district.

(d)

The board may adopt resolutions described by

Subsections (b) and (c) and hold public hearings for those

resolutions and any applicable proposed bond and maintenance taxes

at the same time.

(e)

After a public hearing is held in accordance with

Section 8513.0803, the board shall review any findings and

recommendations resulting from the hearing. The board may alter,

modify, or change any provision of the resolution, except as

provided by Section 8513.0809. The board may adopt a resolution

creating the proposed pollution control district. The resolution

creating a pollution control district must:

(1)

state the purposes for which the proposed district

has been created;

(2) designate the proposed district's boundaries;

(3)

declare that the indebtedness to be incurred or

the cost of services to be rendered by the authority for the

proposed district's benefit shall be payable from taxes imposed on

property in the district;

(4)

find that the property in the proposed district

will benefit from the indebtedness proposed to be incurred or the

services proposed to be rendered by the authority on the district's

behalf; and

(5)

order an election in the proposed district to

authorize the indebtedness or maintenance tax, stating:

(A) the date of the election;

(B)

the proposition or propositions to be voted

on;

(C) the location of the polling places; and

(D) the names of the election officers.

Sec.

8513.0803.

PUBLIC HEARING ON CREATION OF POLLUTION

CONTROL DISTRICT; NOTICE.

(a)

The authority must hold a public

hearing on the matters set forth in a resolution calling for the

creation of a pollution control district before the proposed

district is established.

(b)

The hearing may be held in connection or concurrently

with another public hearing, meeting, or proceeding conducted by

the board.

(c)

The hearing must be held within the boundaries of the

proposed pollution control district.

(d) The hearing may be conducted by:

(1) a majority of the board;

(2) one or more directors; or

(3)

one or more authority employees, as designated by

the board.

(e)

If the hearing is conducted by fewer than a majority of

directors in accordance with Subsection (d)(2) or (3), the

individual or individuals conducting the hearing may accept

evidence and make recommendations to the board on any proposed

changes to the resolution.

(f)

Notice of the hearing must be published in a newspaper

of general circulation within the boundaries of the proposed

pollution control district not more than 30 days before the date of

the hearing and not less than 15 days before the date of the

hearing. Except as otherwise provided by this section, Chapter 551,

Government Code, applies to notice of a public hearing under this

section.

Sec.

8513.0804.

PUBLIC TESTIMONY ON CREATION OF POLLUTION

CONTROL DISTRICT. (a) A hearing on the matters set forth in a

resolution calling for the creation of a pollution control district

must include an opportunity for:

(1)

any interested person, including a person who owns

property or resides in the authority, to appear and present

evidence relevant to a matter set forth in the resolution calling

for the creation of the proposed district; and

(2)

a person who resides in or owns property in the

boundaries of the proposed district to appear and present evidence

regarding whether the person will receive benefits from the

proposed improvements or tax.

(b)

Failure to appear at the public hearing constitutes a

waiver of all objections that the absent person might have had to

any matters set forth in the resolution calling for the creation of

the proposed pollution control district.

Sec.

8513.0805.

MAINTENANCE TAX AND BOND ELECTION FOR

POLLUTION CONTROL DISTRICT. An election ordered within the

boundaries of a proposed pollution control district to authorize

the imposition of a maintenance tax or the issuance of bonds may be

held at the same time as any general or special election.

Sec.

8513.0806.

JUDICIAL REVIEW OF RESOLUTION CREATING

POLLUTION CONTROL DISTRICT. (a) A resolution of the board creating

a pollution control district adopted under Section 8513.0802(e) is

final and not subject to judicial review except on the basis of

whether the resolution is supported by substantial evidence.

(b)

An action or proceeding questioning, contesting, or

denying the validity of a resolution creating a pollution control

district or any related proceeding must be brought not later than

the 30th day after the effective date of the resolution. If an

action or proceeding is not brought within that period, the

resolution and any related proceedings are valid and incontestable.

Sec.

8513.0807.

FILING REQUIREMENT. A resolution of the

board creating a pollution control district adopted under Section

8513.0802(e) shall be filed in the deed records of each county in

the district's territory.

Sec.

8513.0808.

POLLUTION CONTROL DISTRICT TERRITORY. (a)

A pollution control district may include any territory, whether or

not contiguous, in the authority.

(b)

If any portion of the territory of a proposed pollution

control district falls within the boundaries or the exclusive

extraterritorial jurisdiction of a municipality, the board must

obtain the municipality's consent before creating the proposed

district. Consent of a municipality:

(1)

may contain any conditions agreed on by the

authority and the municipality; and

(2)

must be evidenced by an enacted ordinance of the

municipality's governing body.

Sec.

8513.0809.

ANNEXATION OF TERRITORY TO POLLUTION

CONTROL DISTRICT. (a) Territory may be annexed to an existing

pollution control district in the manner provided by this section.

(b)

The board may annex territory under this section by

resolution of the board or by a petition requesting annexation. The

petition must:

(1)

to the extent practicable, set forth the matters

described in a resolution calling for the creation of the pollution

control district, as described by Section 8513.0802(b) or (c);

(2)

request a public hearing by the board on the

petition; and

(3) be signed by:

(A)

the owners of 50 percent or more of the value

of the territory to be annexed;

(B)

a majority of the residents of the territory

to be annexed; or

(C)

if fewer than three registered voters reside

in the territory to be annexed, the owner or owners of the

territory.

(c)

The board shall hold a public hearing on the petition in

the same manner as a public hearing under Section 8513.0803.

(d)

If the board finds that the territory should be annexed,

the board may adopt a resolution:

(1) ordering an election on the annexation:

(A)

in the territory contained in the existing

pollution control district; and

(B) in the territory to be annexed; or

(2)

if the petition for annexation was brought under

Subsection (b)(3)(C), annexing the territory to the district.

(e)

Except as provided by Subsection (f), the board may not

annex the territory until a majority of the registered voters:

(1)

in the territory of the existing pollution control

district are in favor of annexation; and

(2)

in the territory to be annexed to the pollution

control district are in favor of annexation and, if applicable, in

favor of:

(A)

allowing a maintenance tax on the land to be

annexed;

(B)

assuming the pro rata share of any previously

authorized indebtedness of the existing district; or

(C)

allowing any taxes necessary to support tax

or tax-revenue bonds previously voted on that have not yet been

issued on behalf of the existing pollution control district and

authorizing the board to impose a tax on the property for payment of

the unissued bonds when those bonds are issued.

(f)

A resolution of the board annexing territory adopted

under Subsection (d)(2) is temporary until a majority of the

registered voters in an election held in the pollution control

district including the annexed territory are in favor of:

(1) annexing the territory;

(2)

ratifying any unissued tax or revenue bonds of the

authority to be issued on behalf of the district; and

(3)

authorizing the board to impose within the

district a maintenance tax or a tax to pay for any unissued bonds

when issued.

(g)

If a majority of the registered voters in an election

held under Subsection (d) or (f) are in favor of the annexation, the

board shall adopt a resolution redefining the boundaries of the

pollution control district and record the resolution in the deed

records of each county containing the annexed territory.

Sec.

8513.0810.

POWER TO ISSUE BONDS; TAX FOR POLLUTION

CONTROL DISTRICT. (a) The board may:

(1)

incur any indebtedness necessary to provide all

improvements and the maintenance of those improvements required to

achieve the purposes for which any pollution control district is

organized;

(2)

impose taxes necessary for the payment of the

interest of any bonds issued under this section; and

(3)

create a sinking fund for the payment of bonds

issued under this section.

(b)

Taxes imposed under this section are a lien on the

property assessed for the payment of the taxes.

(c)

If the majority of the votes in an election held under

Section 8513.0805 or 8513.0809 are in favor of authorizing the

authority to incur indebtedness for the benefit of a pollution

control district, the board may issue bonds for that purpose.

(d)

If the board issues bonds under Subsection (c), the

board may impose a tax only on property in the pollution control

district to pay the principal of or interest on the bonds.

(e)

If the majority of the votes in an election held under

Section 8513.0805 or 8513.0809 are in favor of authorizing the

authority to impose an ad valorem tax, the board may impose the tax

only on property in the pollution control district.

(f)

Chapters 49 and 51, Water Code, apply to the imposition

of a tax or the issuance of bonds under this subchapter.

Sec.

8513.0811.

CONFLICT OF LAW.

In all areas of conflict

with this subchapter and Chapters 49 and 51, Water Code, this

subchapter prevails.

SECTION 2. The following provisions are repealed:

(1) Chapter 276, Acts of the 45th Legislature, Regular

Session, 1937;

(2) Section 2, Chapter 504, Acts of the 55th

Legislature, Regular Session, 1957;

(3) Sections 25, 26, 27, and 28, Chapter 233, Acts of

the 57th Legislature, Regular Session, 1961;

(4) Sections 10, 11, and 12, Chapter 836, Acts of the

61st Legislature, Regular Session, 1969;

(5) Section 2, Chapter 604, Acts of the 64th

Legislature, Regular Session, 1975;

(6) Sections 4 and 5, Chapter 60, Acts of the 67th

Legislature, Regular Session, 1981;

(7) Sections 2 and 3, Chapter 701, Acts of the 70th

Legislature, Regular Session, 1987; and

(8) Sections 13 and 14, Chapter 179, Acts of the 88th

Legislature, Regular Session, 2023.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 2692 was passed by the House on April

30, 2025, by the following vote: Yeas 104, Nays 32, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2692 was passed by the Senate on May

16, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor