80C99(2) SGA

 

CHAPTER 6904.  AQUILLA WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 6904.001.  DEFINITIONS.  In this chapter:

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

(2)  "Director" means a member of the board.

(3)  "District" means the Aquilla Water Supply District.  (Acts 65th Leg., R.S., Ch. 713, Secs. 1 (part), 3(a) (part); New.)

Source Law

Sec. 1.  …  the "Aquilla Water Supply District," hereinafter called "district," … .

Sec. 3.  (a)  [The district shall be governed by a board of directors] hereinafter called the "board," … .

Revisor's Note

The definition of "director" is added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definition.

Revised Law

Sec. 6904.002.  NATURE OF DISTRICT.  The district is a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution.  (Acts 65th Leg., R.S., Ch. 713, Sec. 1 (part).)

Source Law

Sec. 1.  By virtue of Article XVI, Section 59, of the Texas Constitution, there is created a conservation and reclamation district to be known as the "Aquilla Water Supply District," … which shall be a governmental agency and a body politic and corporate.

Revisor's Note

Section 1, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the district as "a governmental agency and a body politic and corporate."  The revised law omits the references to "governmental agency" and "body politic and corporate" because they duplicate a portion of Section 59(b), Article XVI, Texas Constitution, which provides that a conservation and reclamation district is a governmental agency and a body politic and corporate.

Revised Law

Sec. 6904.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  All land and taxable property in the city of Hillsboro will benefit from the works and improvements of the district.

(b)  The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state for the improvement of their property and industries. The district, in carrying out the purposes of this chapter, will be performing an essential public function under the constitution.  (Acts 65th Leg., R.S., Ch. 713, Secs. 2 (part), 22 (part).)

Source Law

Sec. 2.  [The district shall contain all of the territory contained in the boundaries of the city of Hillsboro] … it being found and determined that all of the territory and taxable property contained within the boundaries of the city will be benefited by the works and improvements of the district.

Sec. 22.  The accomplishment of the purposes stated in this Act is for the benefit of the people of this state for the improvements of their properties and industries, and the district, in carrying out the purposes of this Act, will be performing an essential public function under the constitution.  …

[Sections 6904.004-6904.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT TERRITORY

Revised Law

Sec. 6904.051.  DISTRICT TERRITORY.  (a)  The boundaries of the district are coextensive with the boundaries of the city of Hillsboro as those boundaries existed on January 1, 1977, and as the district territory may have been modified under:

(1)  Sections 6904.052 and 6904.053 or their predecessor statute, Section 6, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977;

(2)  Subchapter J, Chapter 49, Water Code;

(3)  Subchapter O, Chapter 51, Water Code, before September 1, 1995; or

(4)  other law.

(b)  An invalidity in the fixing of the boundaries of the city of Hillsboro as they existed on January 1, 1977, does not affect the boundaries of the district.  (Acts 65th Leg., R.S., Ch. 713, Sec. 2 (part); New.)

Source Law

Sec. 2.  The district shall contain all of the territory contained in the boundaries of the city of Hillsboro in Hill County, Texas, as the boundaries of that city existed on January 1, 1977.  It is provided, however, that no invalidity in the fixing of the boundaries shall affect the boundaries of the territory contained in this district, … .

Revisor's Note

For the reader's convenience, the revised law includes references to statutory authority to change the district's territory under this chapter, Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter, and Subchapter O, Chapter 51, Water Code, applicable to water control and improvement districts.  The revised law also includes a reference to the general authority of the legislature to enact other laws to change the district's territory.

Revised Law

Sec. 6904.052.  ANNEXATION OF TERRITORY.  (a)  Territory may be annexed to the district as provided by this section or by Section 6904.053.

(b)  The board may annex territory or a municipality under this section only if a petition requesting annexation is signed by 50 voters of the territory or municipality to be annexed, or a majority of the registered voters of that territory or municipality, whichever is fewer, and is filed with the board.  The petition must describe the territory to be annexed by metes and bounds, or otherwise, except that if the territory is the same as that contained in the boundaries of a municipality, the petition is sufficient if it states that the territory to be annexed is the territory contained in the municipal boundaries.

(c)  If the board determines that the petition complies with Subsection (b), that the annexation would be in the best interest of the territory or municipality and the district, and that the district will be able to supply water or other services to the territory or municipality, the board shall:

(1)  adopt a resolution stating the conditions, if any, under which the territory or municipality may be annexed to the district; and

(2)  set a time and place to hold a hearing on the question of whether the territory or municipality to be annexed will benefit from:

(A)  the improvements, works, or facilities owned or operated or contemplated to be owned or operated by the district; or

(B)  the other functions of the district.

(d)  At least 10 days before the date of the hearing, notice of the adoption of the resolution stating the time and place of the hearing shall be published one time in a newspaper of general circulation in the territory or municipality to be annexed.  The notice must describe the territory in the same manner in which Subsection (b) requires the petition to describe the territory.

(e)  Any interested person may appear at the hearing and offer evidence for or against the annexation.

(f)  The hearing may proceed in the order and under the rules prescribed by the board and may be recessed from time to time.

(g)  If, at the conclusion of the hearing, the board finds that the property in the territory or municipality will benefit from the present or contemplated improvements, works, or facilities of the district, the board shall adopt a resolution making a finding of the benefit and calling an election in the territory or municipality to be annexed.

(h)  In calling an election on the proposition for annexation of the territory or municipality, the board may include, as part of the same proposition or as a separate proposition, a proposition for:

(1)  the territory to assume its part of the tax-supported bonds of the district then outstanding and those bonds previously voted but not yet sold; and

(2)  an ad valorem tax to be imposed on taxable property on the territory along with the tax in the rest of the district for the payment of the bonds.

(i)  If a majority of the votes cast at the election are in favor of annexation, the board by resolution shall annex the territory to the district.

(j)  An annexation under this section is incontestable except in the manner and within the time for contesting elections under the Election Code. (Acts 65th Leg., R.S., Ch. 713, Secs. 6(f), (g), (h), (i).)

Source Law

(f)  Other territory may be annexed to the district in the manner provided in Subsections (g) through (i) of this section.

(g)  A petition praying for such annexation signed by 50 or a majority, whichever number is smaller, of the resident, qualified voters of the territory or of duly incorporated cities or towns, sought to be annexed, shall be filed with the board.  The petition shall describe the territory to be annexed by metes and bounds, or otherwise, unless the territory is the same as that contained within the boundaries of the city or town, in which event, it shall be sufficient to state that the territory to be annexed is that which is contained within the boundaries of the city or town.

(h)  If the board finds that the petition complies with, and is signed by, the number of qualified persons required by the foregoing subsection, that the annexation would be to the best interest of the territory, city or town, and the district, and that the district will be able to supply water or other lawful services, or cause water or other services to be supplied to the territory, city or town, it shall adopt a resolution stating the conditions, if any, under which such territory, city or town, may be annexed to the district, and shall fix a time and place when and where a hearing shall be held by the board on the question of whether the territory, city or town, sought to be annexed will be benefited by the improvements, works, and facilities then owned or operated or contemplated to be owned or operated by the district or by the other functions of the district.  Notice of the adoption of the resolution stating the time and place of the hearing shall be published one time in a newspaper of general circulation in the territory, city or town, sought to be annexed at least 10 days prior to the date of the hearing.  The notice shall describe the territory in the same manner in which it is required or permitted by this Act to be described in the petition.  All persons interested may appear at the hearing and offer evidence for or against the proposed annexation.  The hearing may proceed in the order and under the rules prescribed by the board, and the hearing may be recessed from time to time.  If, at the conclusion of the hearing, the board finds that the property in the territory, city or town, will be benefited by the present or contemplated improvements, works, or facilities of the district, the board shall adopt a resolution making a finding of the benefit and calling an election in the territory, city or town, proposed to be annexed. If a majority of the votes cast are in favor of annexation, the board shall by resolution annex the territory to the district, and the annexation shall thereafter be incontestable except in the manner and within the time for contesting elections under the Texas Election Code.

(i)  The board, in calling an election on the proposition for annexation of the territory, city or town, may include as a part of the same proposition, or as a separate proposition for the assumption of its part of the tax-supported bonds of the district then outstanding and those previously voted but not yet sold, and for the levy of an ad valorem tax on taxable property in the territory along with the tax in the rest of the district for the payment of the bonds, in which event the voting shall be restricted to constitutionally qualified electors.

Revisor's Note

(1)  Section 6(g), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to "resident, qualified voters" of the territory.  The revised law substitutes "registered voters" for the quoted language because in the context of eligibility to sign a petition, Section 277.0021, Election Code, provides that "qualified voter" means a "registered voter."

(2)  Section 6(g), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the boundaries of a "city or town."  Throughout this chapter, the revised law substitutes "municipality" for "city" or "town," unless a specific municipality is intended, because the meaning of "municipality" includes both cities and towns and because that is the term used in the Local Government Code.

(3)  Section 6(h), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to a finding by the board that the district will be able to "supply water or other lawful services, or cause water or other services to be supplied."  The revised law omits "lawful" because, as a general principle of law, the district has the authority to provide lawful services only.  The revised law also omits the reference to "cause water or other services to be supplied" because it is included in the meaning of "supply water or other lawful services."

(4)  Section 6(h), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, requires notice by publication to describe the territory to be annexed in the same manner in which it is "required or permitted by this Act" to be described in the petition.  The requirements for describing the territory in the petition are revised in Subsection (b) of this section.  The revised law is drafted accordingly.

(5)  Section 6(i), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the "levy" of an ad valorem tax.  Other provisions revised in this chapter refer to the district's authority to "levy and collect" taxes.  Throughout this chapter, the revised law substitutes "imposition" or "impose" for the quoted language because "impose" is the term generally used in Title 1, Tax Code, and includes the levy and collection of taxes.

(6)  Section 6(i), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, restricts certain voting to "constitutionally qualified electors."  The revised law omits that provision because Chapter 11, Election Code, governs eligibility to vote in an election in this state.  As a general principle of law, Chapter 11 and all Texas statutes are required to contain only provisions that are consistent with the constitution.

Revised Law

Sec. 6904.053.  ANNEXATION OF TERRITORY ANNEXED TO MUNICIPALITY IN DISTRICT.  (a)  At any time after final passage of an ordinance or resolution annexing territory to a municipality in the district, the board may give notice of a hearing on the question of annexing that territory to the district.  The notice is sufficient if it:

(1)  states the date and place of the hearing; and

(2)  describes the area proposed to be annexed or refers to the annexation ordinance or resolution of the municipality.

(b)  The notice must be published one time in a newspaper of general circulation in the municipality not later than the 10th day before the date set for the hearing.

(c)  If, as a result of the hearing, the board finds that the territory will benefit from the present or contemplated improvements, works, or facilities of the district, the board shall adopt a resolution annexing the territory to the district.

(d)  After the territory is annexed to the district, the board may call an election in the entire district to determine whether:

(1)  the entire district will assume any tax-supported bonds then outstanding and those bonds previously voted but not yet sold; and

(2)  an ad valorem tax for the payment of the bonds will be imposed on all taxable property in the district. (Acts 65th Leg., R.S., Ch. 713, Secs. 6(a), (b), (c), (d), (e).)

Source Law

Sec. 6.  (a)  Territory annexed to any city or town theretofore included within the boundaries of the district may be annexed to the district in the manner provided in this section.

(b)  At any time after final passage of an ordinance or resolution annexing territory to a city or town included in the boundaries of the district, the board may issue a notice of hearing on the question of annexing the territory to the district.  The notice shall be sufficient if it states the date and place of the hearing and a description of the area proposed to be annexed, but in lieu of the description, the notice may make reference to the annexation ordinance or resolution of the city.

(c)  The notice shall be published one time in a newspaper having general circulation in such city, the publication to be at least 10 days before the date set for the hearing.

(d)  If, pursuant to the hearing, the board finds that the territory proposed to be annexed will be benefited by the then present or contemplated improvements, works, or facilities of the district, the board shall adopt a resolution annexing the territory to the district.

(e)  After the territory is added to the district, the board may call an election over the entire district for the purpose of determining whether the entire district, as enlarged, shall assume any tax-supported bonds then outstanding and those previously voted but not yet sold and whether an ad valorem tax for the payment of the bonds shall be levied upon all taxable property within the district as enlarged.

[Sections 6904.054-6904.100 reserved for expansion]

SUBCHAPTER C.  BOARD OF DIRECTORS

Revised Law

Sec. 6904.101.  COMPOSITION OF BOARD.  (a)  The district is governed by a board of at least five directors.  The directors occupy numbered places on the board.

(b)  For each municipality annexed to the district under Section 6904.052, two places are added to the board, except that the number of directors may not exceed 11.

(c)  Not more than five directors may reside in the corporate limits of the city of Hillsboro.  (Acts 65th Leg., R.S., Ch. 713, Sec. 3(a) (part).)

Source Law

Sec. 3.  (a)  The district shall be governed by a board of directors, … composed initially of five members, entitled directors, who shall occupy places on the board to be designated as Places 1, 2, 3, 4, and 5, respectively. …  For each duly incorporated city or town annexed pursuant to the terms hereof, there shall be added two places to the board, provided that the total number of directors on the board shall never exceed 11, and provided further that there shall never be more than five directors who reside within the corporate limits of the city of Hillsboro. …

Revisor's Note

(1)  Section 3(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to "each duly incorporated city or town."  The revised law substitutes "municipality" for "city or town" for the reason stated in Revisor's Note (2) to Section 6904.052.  The revised law omits "duly incorporated" because under the Local Government Code, all municipalities must be incorporated.

(2)  Section 3(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that except for the initial directors, directors hold office for a term of two years and until their successors have been appointed or elected and qualified.  The revised law omits the reference to the initial directors because the terms of office for those directors have expired.  The revised law omits the reference to a director serving until a successor is elected or appointed and qualified because it duplicates Section 17, Article XVI, Texas Constitution, which provides that an officer in this state continues to perform the officer's official duties until a successor has qualified.  The revised law also omits the provision for a two-year term of office as superseded by Section 49.103(a), Water Code, which provides for a four-year term of office.  Similarly, throughout this chapter, the revised law omits law that is superseded by Chapter 49, Water Code, or that duplicates law contained in that chapter.  Chapter 49, Water Code, applies to the district under Sections 49.001 and 49.002, Water Code.  The omitted law reads:

(a)  …  All directors with the exception of the initial directors shall hold office for a term of two years and until their successors have been appointed or elected and qualified. …

Revised Law

Sec. 6904.102.  QUALIFICATIONS FOR OFFICE.  (a)  To be eligible to serve as a director, a person must be:

(1)  a qualified district voter; and

(2)  a district resident.

(b)  A director is eligible for reelection.  (Acts 65th Leg., R.S., Ch. 713, Secs. 3(a) (part), (b).)

Source Law

(a)  …  Each director shall be eligible for reelection. …

(b)  To be eligible to serve as a director, a person must be a resident, qualified elector of the district.

Revisor's Note

Section 3(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to an "elector" of the district.  The revised law substitutes "voter" for "elector" because the former is the term used in the Election Code.

Revised Law

Sec. 6904.103.  DIRECTORS' ELECTION.  Directors shall be elected at an election called for that purpose by the board.  (Acts 65th Leg., R.S., Ch. 713, Sec. 3(a) (part).)

Source Law

(a)  …  All directors with the exception of the initial directors herein named shall be elected at an election called for such purpose by the board.

Revisor's Note

Section 3(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides an exception for "the initial directors herein named."  The revised law omits the reference to the initial directors because, as noted in Revisor's Note (2) to Section 6904.101, the terms of office for those directors have expired.

Revised Law

Sec. 6904.104.  REMOVAL FROM OFFICE.  After reasonable notice and a public hearing, the board may remove a director from office for misfeasance, malfeasance, or wilful neglect of duty.  Reasonable notice and a public hearing are not required if the director to be removed expressly waives the notice and hearing in writing.  (Acts 65th Leg., R.S., Ch. 713, Sec. 3(c).)

Source Law

(c)  Any director may be removed from office by the board for misfeasance, malfeasance, or willful neglect of duty, but only after reasonable notice and public hearing, unless the notice and public hearing are expressly waived in writing by the director to be removed.

Revised Law

Sec. 6904.105.  BOARD RESOLUTIONS; VOTING REQUIREMENTS.  (a)  The district shall act through resolutions adopted by the board.

(b)  All directors are entitled to vote.

(c)  The affirmative vote of a majority of the quorum present is necessary to adopt a resolution.  (Acts 65th Leg., R.S., Ch. 713, Sec. 4(c).)

Source Law

(c)  A majority of the directors shall constitute a quorum, and all directors shall be entitled to vote.  The district shall act and proceed by and through resolutions adopted by the board, and the affirmative vote of at least a majority of the quorum present shall be necessary to adopt any resolution.

Revisor's Note

Section 4(c), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that a majority of the directors on the board constitutes a quorum.  The revised law omits that provision because it duplicates Section 49.053, Water Code, which provides that a majority of a board constitutes a quorum.

Revised Law

Sec. 6904.106.  OFFICERS AND ASSISTANTS.  (a)  The board shall elect a president, vice president, secretary, and treasurer at the first meeting of the newly constituted board after each directors' election or at any time necessary to fill a vacancy.

(b)  The board shall elect the president and vice president from among the directors.

(c)  The offices of secretary and treasurer:

(1)  may be held by one person; and

(2)  are not required to be held by a director.

(d)  The board may appoint as assistant board secretary one or more persons who are not directors.  (Acts 65th Leg., R.S., Ch. 713, Secs. 4(b) (part), (d) (part).)

Source Law

(b)  The board shall elect one of the directors as president of the board, who shall serve for a term of one year and … .  The board shall elect another of the directors as vice-president of the board, … .  The board shall elect a secretary of the board, … shall elect a treasurer of the board, … .  The offices of secretary and treasurer may be held by one person, and the holder or holders of such office or offices need not be a director.  The board may appoint one or more persons who are not directors to be assistant secretary of the board, … .

(d)  …  Thereafter, the officers of the board shall be elected annually at the first meeting of the newly constituted board each year, or at any time necessary to fill a vacancy.

Revisor's Note

(1)  Section 4(d), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides for the initial election of board officers.  The revised law omits that provision as executed.  The omitted law reads:

(d)  The president, the vice-president, the secretary, and the treasurer of the board shall be elected initially at the first meeting of the board after all directors shall have been appointed, taken the oath required by Article XVI, Section 1, of the Texas Constitution, and otherwise qualified for office. …

(2)  Section 4(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, states that the president of the board serves for a term of one year.  Section 4(d) of that act provides for officers of the board to be elected "annually at the first meeting of the newly constituted board each year."  As stated in Revisor's Note (2) to Section 6904.101, the district directors originally served two-year terms, but Section 49.103, Water Code, now provides for a four-year term of office.  As a result, the district board is newly constituted every other year, instead of every year, and the election of officers of the board need not occur each year.  Clearly the intent of Section 4 is for the board to elect officers each time the board is newly constituted after a directors' election.  See, for example, Section 49.054(b), Water Code.  The revised law is drafted accordingly.

Revised Law

Sec. 6904.107.  OFFICER DUTIES.  (a)  The board president shall preside at board meetings and perform other duties prescribed by the board.

(b)  The board secretary is the official custodian of the minutes, books, records, and seal of the board and shall perform other duties and functions prescribed by the board.  An assistant board secretary may perform any duty or function of the board secretary.

(c)  The board treasurer shall perform duties and functions prescribed by the board.  (Acts 65th Leg., R.S., Ch. 713, Sec. 4(b) (part).)

Source Law

(b)  [The board shall elect one of the directors as president of the board,] … who shall preside at meetings of the board and perform such other duties as are prescribed by the board.  … [The board shall elect a secretary of the board,] who shall be the official custodian of the minutes, books, records, and seal of the board, and who shall perform such other duties and functions as are prescribed by the board; and [shall elect a treasurer of the board,] who shall perform such duties and functions as are prescribed by the board. …  [The board may appoint … assistant secretary of the board,] who may perform any duty or function of the secretary of the board.

Revised Law

Sec. 6904.108.  MEETINGS.  The board shall have regular meetings at times specified by board resolution and shall have special meetings when called by the board president or by any two directors.  (Acts 65th Leg., R.S., Ch. 713, Sec. 4(e).)

Source Law

(e)  The board shall have regular meetings at times specified by resolution of the board and shall have special meetings whenever called by the president, or whenever called by any two of the directors.

Revised Law

Sec. 6904.109.  PERSONAL LIABILITY OF DIRECTORS.  A director is not personally liable for any bond issued or contract executed by the district.  (Acts 65th Leg., R.S., Ch. 713, Sec. 4(f).)

Source Law

(f)  No director is liable personally for any bonds issued, or contracts executed, by the district.

Revisor's Note

(End of Subchapter)

(1)  Section 3(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the initial board of directors.  Throughout this chapter, the revised law omits references to the initial board of directors as executed.  The omitted law reads:

(a)  …  The initial board of directors shall be composed of the following five members:

Mr. Paul Harvey, Sr.

Mr. Robert G. Dohoney

Mr. Paul Hoyle

Mr. Frank W. Steele

Mr. Henry Moore

who shall draw lots at the first organizational meeting of the board to determine who shall occupy places on the board to be designated as Places 1, 2, 3, 4, and 5, respectively.  The terms of Places 1 and 2 on the board shall expire at 12 a. m. on the Monday following the first Saturday in April, 1978, and Places 3, 4, and 5 on the board shall expire at 12 a. m. on the Monday following the first Saturday in April, 1979. …

(2)  Section 3(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, describes the procedure for filling a board vacancy.  The revised law omits that provision because it duplicates Section 49.105, Water Code.  The omitted law reads:

(a)  …  In case a vacancy occurs on the board, whether by death, resignation, or otherwise, and whether it be in a place held by one of the initial directors or a director elected pursuant to the terms hereof, such vacancy shall be filled with an appointment for the unexpired term by the majority of the remaining directors. …

(3)  Section 4(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that a director serves without compensation and is entitled to reimbursement of expenses.  The revised law omits that provision because Section 49.060, Water Code, supersedes that provision under the express language of Section 49.060(e).  The omitted law reads:

Sec. 4.  (a)  The directors shall not receive any remuneration or emolument of office, but they shall be entitled to reimbursement for their actual expenses incurred in performing their duties to the extent authorized and permitted by the board.

(4)  Section 4(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides the duties of the board vice president.  The revised law omits the provision because it duplicates Section 49.054, Water Code.  The omitted law reads:

(b)  … [The board shall elect another of the directors as vice-president of the board,] who shall perform the duties of the president when the president is not present or is otherwise incapacitated… .

[Sections 6904.110-6904.150 reserved for expansion]

SUBCHAPTER D.  POWERS AND DUTIES

Revised Law

Sec. 6904.151.  DISTRICT POWERS.  The district may exercise any power necessary or appropriate to achieve the purposes of this chapter, including the power to:

(1)  sue and be sued, and plead and be impleaded, in its own name;

(2)  adopt an official seal;

(3)  adopt and enforce bylaws and rules for the conduct of its affairs;

(4)  acquire, hold, use, and dispose of its receipts and money from any source;

(5)  acquire, own, rent, lease, accept, hold, or dispose of property, or an interest in property, including a right or easement, by purchase, exchange, gift, assignment, condemnation, sale, lease, or otherwise, in performing district duties or exercising district powers under this chapter;

(6)  hold, manage, operate, or improve property;

(7)  lease or rent any land, building, structure, or facility from or to any person;

(8)  sell, assign, lease, encumber, mortgage, or otherwise dispose of property, or an interest in property, and release or relinquish a right, title, claim, lien, interest, easement, or demand, regardless of the manner in which acquired, and conduct a transaction authorized by this subdivision by public or private sale, with or without public bidding, notwithstanding any other law;

(9)  issue bonds, provide for and secure the payment of the bonds, and provide for the rights of the holders of the bonds in the manner and to the extent authorized by this chapter;

(10)  request and accept an appropriation, grant, allocation, subsidy, guarantee, aid, service, material, or gift from any source, including the federal government, the state, a public agency, or a political subdivision;

(11)  operate and maintain an office;

(12)  appoint and determine the duties, tenure, qualifications, and compensation of district officers and employees, as well as any agent, professional advisor, or counselor, including any financial consultant, accountant, attorney, architect, engineer, appraiser, or financing expert, considered necessary or advisable by the board; and

(13)  exercise any power granted by Chapter 30, Water Code, to water districts created under Section 59, Article XVI, Texas Constitution.  (Acts 65th Leg., R.S., Ch. 713, Sec. 5 (part).)

Source Law

Sec. 5.  The district is hereby granted, has, and may exercise all powers necessary or appropriate to carry out, achieve, or effectuate the purposes of this Act, including, without limitation, the following powers:

(1)  to sue and be sued, and plead and be impleaded, in its own name;

(2)  to adopt an official seal and alter it when deemed advisable and to adopt and enforce bylaws, and rules and regulations for the conduct of its affairs, not inconsistent with the provisions of this Act;

(3)  to acquire, hold, use, and dispose of its revenues, income, receipts, funds, and money from every source, and to select its depository or depositories;

(4)  to acquire, own, rent, lease, accept, hold, or dispose of any real, personal, or mixed property, or any interest therein, in performing its duties and exercising its powers under this Act, by purchase, exchange, gift, assignment, condemnation, sale, lease, or otherwise, including rights or easements, and to hold, manage, operate, or improve real, personal, or mixed property;

(5)  to sell, assign, lease, encumber, mortgage, or otherwise dispose of any real, personal, or mixed property, or any interest therein, and release or relinquish any right, title, claim, lien, interest, easement, or demand, however acquired, and to do any of the foregoing by public or private sale, with or without public bidding, notwithstanding the provisions of any other law, and to lease or rent any land, buildings, structures, or facilities from or to any person, firm, corporation, city or other public agency or political subdivision to effectuate the purposes of this Act;

(6)  to request and to accept any appropriations, grants, allocations, subsidies, guaranties, aid, contributions, services, labor, materials, gifts, or donations from the federal government, the state, any city, public agency, political subdivision, or any other source;

(7)  to operate and maintain an office, and to appoint and determine the duties, tenure, qualifications, and compensation of such officers, employees, agents, and professional advisors, and counsellors, including, without limitation, financial consultants, accountants, attorneys, architects, engineers, appraisers, and financing experts, as are deemed necessary or advisable by the board;

(8)  to issue its bonds, to provide for and secure the payment of its bonds, and to provide for the rights of the holders of its bonds, in the manner and to the extent permitted by this Act;

… ; and

(10)  to exercise all powers granted by Chapter 25 of the Water Code to water districts created under Article XVI, Section 59, of the Texas Constitution.

Revisor's Note

(1)  Section 5, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the district's power to "carry out, achieve, or effectuate" certain purposes.  The revised law omits "carry out" and "effectuate" because those terms are included in the meaning of "achieve."

(2)  Section 5, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, grants the district certain powers "including, without limitation" the enumerated powers.  Throughout this chapter, the revised law omits "without limitation" because Section 311.005(13), Government Code (Code Construction Act), provides that "including" is a term of enlargement and not of limitation and does not create a presumption that components not expressed are excluded.

(3)  Section 5(2), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to adopt an official seal and to "alter it when deemed advisable."  The revised law omits the quoted language because the authority to adopt a seal includes the authority to alter it.

(4)  Section 5(2), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, states that the district may adopt and enforce bylaws and "rules and regulations" for the conduct of its affairs "not inconsistent with the provisions of this Act."  The revised law omits "regulations" because Section 311.005, Government Code (Code Construction Act), defines "rule" to include "regulation."  The revised law omits "not inconsistent with the provisions of this Act" as unnecessary because as a general principle of law, the district has the authority to take only those actions that are consistent with the law revised in this chapter.

(5)  Section 5(3), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the district's power regarding its "revenues, income, … funds," and money and states that the district may select its depository.  The revised law omits the quoted language because the meaning of those terms is included in the meaning of "money."  Throughout this chapter, the revised law substitutes "money" for "funds" (except where a specific type of fund is indicated) because, in context, the meaning is the same and "money" is the more commonly used term.  The revised law also omits the statement authorizing the district to select its depository because it duplicates Section 49.156, Water Code, which requires the board to designate a bank to serve as a depository for the district's money.

(6)  Sections 5(4) and (5), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refer to "real, personal, or mixed property."  Throughout this chapter, the revised law omits references to "real," "personal," and "mixed" property without limitation because under Section 311.005(4), Government Code (Code Construction Act), "property" includes real and personal and, by extension, mixed property.

(7)  Section 5(5), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to any "person, firm, corporation, city or other public agency or political subdivision."  Throughout this chapter, the revised law substitutes "person" for the quoted language or similar language because Section 311.005, Government Code (Code Construction Act), defines "person" to include any legal entity.

(8)  Section 5(6), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may request and accept "appropriations, grants, allocations, subsidies, guaranties, aid, contributions, services, labor, materials, gifts, or donations" from any source, including "any city … [or] political subdivision."  The revised law omits "contributions," "labor," and "donations" because the meaning of those terms is included in the meaning of "aid," "services," or "gifts."  The revised law also omits the reference to "city" because "city" is included in the meaning of "political subdivision."

(9)  Section 5(9), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to set and "revise from time to time" the rates and fees that it charges to those who use district facilities or services.  The revised law omits the provision because it duplicates, in substance, Section 49.212, Water Code.  The quoted language is omitted because the power to set the rates and fees includes the power to revise them from time to time.  The omitted law reads:

Sec. 5.  …

(9)  to fix and revise from time to time and charge and collect rates, fees, and charges for its facilities and services; … .

(10)  Section 5(10), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to Chapter 25, Water Code.  That chapter was revised in 1977 as Chapter 30, Water Code.  The revised law is drafted accordingly.

Revised Law

Sec. 6904.152.  PERMITS.  (a)  The district may obtain through appropriate proceedings permits from the Texas Commission on Environmental Quality.

(b)  The district may acquire water appropriation permits from owners of permits by contract or otherwise. (Acts 65th Leg., R.S., Ch. 713, Sec. 7 (part).)

Source Law

Sec. 7.  The district may obtain through appropriate proceedings permits from the Texas Water Rights Commission.  The district is authorized to acquire water appropriation permits from owners of permits through contracting or otherwise. …

Revisor's Note

Section 7, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the "Texas Water Rights Commission."  Throughout this chapter, the revised law substitutes "Texas Commission on Environmental Quality" for "Texas Water Rights Commission" to reflect a change in the agency's name.  In 1977, Section 9, Chapter 870, Acts of the 65th Legislature, Regular Session, abolished the Texas Water Rights Commission and created the Texas Water Commission.  The name of the Texas Water Commission was changed to the Texas Natural Resource Conservation Commission by Section 1.085, Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991.  The name of the  Texas Natural Resource Conservation Commission was changed to the Texas Commission on Environmental Quality by Section 18.01, Chapter 965, Acts of the 77th Legislature, Regular Session, 2001.  The revised law is drafted accordingly.

Revised Law

Sec. 6904.153.  GENERAL AUTHORITY OF PUBLIC AGENCIES AND POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT.  A public agency or political subdivision of this state may enter into a contract or agreement with the district, on terms agreed to by the parties, for any purpose relating to the district's powers or functions.  Approval, notice, consent, or an election is not required in connection with a contract or agreement.  (Acts 65th Leg., R.S., Ch. 713, Sec. 8(b) (part).)

Source Law

(b)  All public agencies and political subdivisions of the State of Texas may enter into contracts and agreements with the district . . . for any purpose relating to the district's powers or functions, upon such terms and conditions as the parties may agree. …  No approval, notice, or consent whatsoever, nor any election, shall be required in connection with any contract, agreement, [or conveyance].

Revisor's Note

Section 8(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to certain "terms and conditions."  Throughout this chapter, the revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 6904.154.  CONTRACTS TO SUPPLY WATER.  (a)  The district may contract with public agencies, political subdivisions, and others to supply water.  The district may sell water inside and outside the boundaries of the district.

(b)  The district may contract with a public agency or political subdivision for the rental or leasing of or for the operation of the water production, water supply, water filtration or purification, and water supply facilities of the entity on the consideration agreed to by the district and the entity.

(c)  A contract may be on terms and for the time agreed to by the parties.

(d)  A contract may provide that it will continue in effect until bonds specified in it and refunding bonds issued in lieu of the bonds are paid.

(e)  The district may contract with the City of Hillsboro for the operation of the district's water facilities by the city.  An election is not required in connection with this contract.  (Acts 65th Leg., R.S., Ch. 713, Secs. 8(a) (part), (b) (part), 18 (part).)

Source Law

(a)  …  The district may sell water inside and outside the boundaries of the district.

(b)  All public agencies and political subdivisions of the State of Texas may enter into contracts and agreements with the district for a water supply, or … .

Sec. 18.  The district is authorized to enter into contracts with cities and others for supplying water to them.  The district is also authorized to contract with any city, public agency, or political subdivision for the rental or leasing of, or for the operation of the water production, water supply, water filtration or purification, and water supply facilities of the entity upon the consideration to which the district and the entity may agree. Any contract may be upon terms and for the time the parties may agree, and the contract may provide that it shall continue in effect until bonds specified in it and refunding bonds issued in lieu of the bonds are paid.  The district is further authorized to contract with the city for the operation of the district's water facilities by the city. No election shall be required in connection with this contract. …

Revisor's Note

(1)  Section 18, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may contract with a "city" for certain purposes related to the supply of water.  Sections 8 and 18 of that act also provide that the district may contract with a "political subdivision" to accomplish the same purposes.  Throughout this chapter, the revised law omits references to "a city" in this context because "city" is included in the meaning of "political subdivision."  Section 18 of that act also provides that the district may contract with "the city" for the operation of the district's water facilities "by the city."  Throughout this chapter, the revised law substitutes "City of Hillsboro" for references to "the city" when it is apparent that a specific reference is being made to that city.

(2)  Section 18, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may exercise the powers granted to districts by the Interlocal Cooperation Act, as amended (Article 4413(32c), Vernon's Texas Civil Statutes).  That statute was codified in 1991 as Chapter 791, Government Code.  The revised law omits that provision because Chapter 791 applies to the district by its own terms under Section 791.003.  The omitted law reads:

Sec. 18.  …  The district may exercise all those powers granted to local governments and districts by The Interlocal Cooperation Act, as amended (Article 4413(32c), Vernon's Texas Civil Statutes), in connection with contracts and agreements.

Revised Law

Sec. 6904.155.  SOURCES FOR WATER; ACQUISITION OF LAND; STORAGE CAPACITY.  (a)  The district may acquire, construct, or develop inside or outside the district sources for water, including reservoirs or wells, and any work, plant, transmission line, or other facility necessary or useful to develop, divert, impound, store, drill for, pump, treat, or transport water, including underground water, to the City of Hillsboro and others for municipal, domestic, industrial, mining, oil flooding, or any other useful purpose.

(b)  The district may acquire land, or an interest in land, inside or outside the district for any work, plant, or other facility necessary or useful to divert, impound, store, drill for, pump, treat, or transport water for municipal, domestic, industrial, mining, oil flooding, or any other useful purpose.

(c)  The district may lease, purchase, or otherwise acquire rights in and to storage and storage capacity in any reservoir constructed or to be constructed by any person or from the United States.  (Acts 65th Leg., R.S., Ch. 713, Secs. 7 (part), 8(a) (part), 9 (part).)

Source Law

Sec. 7.  …  The district may lease, purchase, or otherwise acquire rights in and to storage and storage capacity in any reservoir constructed or to be constructed by any person, firm, corporation, public agency, political subdivision, the state, or from the United States or any of its agencies.

Sec. 8.  (a)  …  The district may acquire, construct, or develop inside or outside the boundaries of the district sources for water, including a reservoir or reservoirs and wells, and all works, plants, transmission lines, and other facilities necessary or useful for the purpose of developing, diverting, impounding, storing, drilling, pumping, treating, and transporting water, including underground water, to the city and others for municipal, domestic, industrial, mining, oil flooding, or any other useful purposes. …

Sec. 9.  The district may acquire land, or any interest in land, inside or outside the boundaries of the district for all works, plants, and other facilities necessary or useful for the purpose of diverting, impounding, storing, drilling, pumping, treating, and transporting water for municipal, domestic, industrial, mining, oil flooding, and all other useful purposes. …

Revisor's Note

Section 7, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the United States "or any of its agencies."  The revised law omits the quoted language because Section 311.005, Government Code (Code Construction Act), defines the United States to include its agencies.

Revised Law

Sec. 6904.156.  CONSTRUCTION CONTRACTS.  (a)  The district may award a construction contract that requires an expenditure of more than $5,000 only after publication of notice to bidders once each week for two weeks in a newspaper of general circulation in the district.

(b)  The notice is sufficient if it states:

(1)  the time and place for opening the bids;

(2)  the general nature of the work to be done;

(3)  the material, equipment, or supplies to be purchased; and

(4)  where the terms of bidding and copies of the plans and specifications may be obtained.  (Acts 65th Leg., R.S., Ch. 713, Sec. 11.)

Source Law

Sec. 11.  Any construction contract requiring an expenditure of more than $5,000 shall be made after publication of a notice to bidders once each week for two weeks in a newspaper of general circulation in the district, before awarding the contract.  The notice shall be sufficient if it states the time and place when and where the bids will be opened, the general nature of the work to be done, and the material, equipment, or supplies to be purchased, and states where the terms and conditions of bidding and copies of the plans and specifications may be obtained.

Revised Law

Sec. 6904.157.  CONVEYANCE OF LAND TO DISTRICT.  A public agency or political subdivision of this state may lease, sell, or otherwise convey its land or an interest in its land to the district for any consideration that the parties agree is adequate.  Approval, notice, consent, or an election is not required in connection with a conveyance, contract, or agreement.  (Acts 65th Leg., R.S., Ch. 713, Sec. 8(b) (part).)

Source Law

(b)  [All public agencies and political subdivisions of the State of Texas] … .  Also, each such entity may lease, sell, or otherwise convey any of its land or any interest in its land to the district for any consideration agreed on between the parties to be adequate. No approval, notice, or consent whatsoever, nor any election, shall be required in connection with any contract, agreement, or conveyance.

Revised Law

Sec. 6904.158.  DISPOSAL OF PROPERTY.  Subject to the terms of a resolution or deed of trust authorizing or securing bonds issued by the district, the district may sell, lease, rent, trade, or otherwise dispose of property under terms considered by the board to be consistent with district purposes.  (Acts 65th Leg., R.S., Ch. 713, Sec. 9 (part).)

Source Law

Sec. 9.  …  Subject to the terms of any resolution or deed of trust authorizing or securing bonds issued by the district, the district may sell, lease, rent, trade, or otherwise dispose of any real or personal property under terms deemed by the board to be consistent with district purposes.

Revised Law

Sec. 6904.159.  EMINENT DOMAIN.  (a)  To carry out a power provided by this chapter, the district may exercise the power of eminent domain to acquire the fee simple title to land, or any other interest in land, and other property and easements, inside or outside the district, including land or an interest in land needed for:

(1)  a well; or

(2)  a reservoir, dam, or flood easement above the probable high-water line around a reservoir.

(b)  The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code.

(c)  The district is a municipal corporation for the purposes of Chapter 21, Property Code.

(d)  The board shall determine the amount and the type of interest in land, other property, or easements to be acquired under this section.  (Acts 65th Leg., R.S., Ch. 713, Sec. 10(a) (part).)

Source Law

Sec. 10.  (a)  For the purpose of carrying out any power or authority conferred by this Act, the district may acquire the fee simple title to land, or any other interest in land, and other property and easements, including land or any interest in land needed for reservoir and dam and flood easements above the probable high-water line around any reservoirs and for wells, inside or outside the boundaries of the district, by condemnation, in the manner provided by Title 52, Revised Civil Statutes of Texas, 1925, as amended, relating to eminent domain.  This district is declared to be a municipal corporation within the meaning of Title 52, Revised Civil Statutes of Texas, 1925, as amended.  The amount of and character of interest in land, other property, and easements thus to be acquired shall be determined by the board. …

Revisor's Note

(1)  Section 10(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to any "power or authority" of the district.  Throughout this chapter, the revised law omits "authority" in this context because "authority" is included in the meaning of "power."

(2)  Section 10(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that "the district may acquire [certain property] by condemnation."  The revised law substitutes for the quoted language "the district may exercise the power of eminent domain to acquire [certain property]" because the phrases have the same meaning and the latter is consistent with modern usage in laws relating to eminent domain.

(3)  Section 10(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to Title 52, Revised Civil Statutes of Texas, 1925, as amended.  That statute was codified as Chapter 21, Property Code.  The revised law is drafted accordingly.  The revised law omits the reference to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(4)  Section 10(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the district has the power conferred by general law on certain districts regarding the right to enter land.  The revised law omits that provision because it duplicates Section 49.221, Water Code, which codified the referenced power.  The omitted law reads:

(a)  …  The district shall have the same power as is conferred by general law on municipal utility districts and on water control and improvement districts, with reference to entering land and making surveys and attending to other business of the district.

Revised Law

Sec. 6904.160.  COST OF RELOCATING OR ALTERING PROPERTY.  (a)  In this section, the term "sole expense" means the actual cost of the lowering, rerouting, change in grade, or alteration of construction required under Subsection (b) to provide a comparable replacement without enhancing the facility, after deducting the net salvage value derived from the old facility.

(b)  If the district's exercise of its eminent domain, police, or other power requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, electric, transmission, telegraph, or telephone line, conduit, pole, property, facility, or pipeline, the action shall be accomplished at the sole expense of the district.  (Acts 65th Leg., R.S., Ch. 713, Sec. 10(c).)

Source Law

(c)  In the event the district, in the exercise of its power of eminent domain or police power, or any other power, requires the relocation, raising, lowering, rerouting, or change in grade or alteration in the construction of any railroad, electric, transmission, telegraph, or telephone lines, conduits, poles, properties, or facilities or pipelines, all this relocation, raising, lowering, rerouting, or changes in grade or alteration of construction shall be accomplished at the sole expense of the district.  The term "sole expense" means the actual cost of the lowering, rerouting, or change in grade or alteration of construction in providing comparable replacement without enhancement of the facilities, after deducting from the cost the net salvage value derived from the old facility.

Revised Law

Sec. 6904.161.  RIGHTS-OF-WAY; EASEMENTS.  The district has all necessary or useful rights-of-way and easements along, over, under, and across all public, state, municipal, and county roads, highways, and places for any of its purposes.  The district shall restore a facility used to its previous condition as nearly as possible at the sole expense of the district. (Acts 65th Leg., R.S., Ch. 713, Sec. 10(b).)

Source Law

(b)  The district is hereby given and granted all necessary or useful rights-of-way and easements along, over, under, and across all public, state, city, and county roads, highways, and places for any of its purposes, but the district shall restore any such facilities used to their previous condition as nearly as possible at the sole expense of the district.

Revised Law

Sec. 6904.162.  ELECTIONS.  (a)  The board shall call an election required to be held under this chapter by adopting a resolution stating:

(1)  the date of the election;

(2)  each place where the election will be held; and

(3)  the proposition or propositions to be voted on.

(b)  The board shall give notice of an election by publishing a substantial copy of the resolution calling the election one time not less than 10 days before the date set for the election in:

(1)  a newspaper of general circulation in the district; and

(2)  a newspaper of general circulation in the territory, if the election is on the question of annexation of territory.

(c)  The board shall adopt a resolution declaring the results of the election.

(d)  The board may combine one or more elections required to be held by this chapter, including a maintenance tax and bond election.  (Acts 65th Leg., R.S., Ch. 713, Secs. 12(c), 21 (part).)

Source Law

[Sec. 12]

(c)  A maintenance tax election may be held at the same time and in conjunction with the election to authorize bonds.

Sec. 21.  All elections required to be held by the terms of this Act shall be called by resolution adopted by the board which shall state the date of the election, the place or places of holding the election, and the proposition or propositions to be voted on.  Notice of each such election shall be given by publishing a substantial copy of the resolution calling the election one time in a newspaper of general circulation in the district not less than 10 days before the date set for election, and if the election is on the question of annexation of territory, of general circulation in the territory sought to be annexed to the district… .  The board shall … adopt a resolution declaring the results of the election.  The board at its discretion may combine one or more elections required to be held by this Act.  …

Revisor's Note

(1)  Section 21, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that only qualified, resident voters may vote in district elections.  The revised law omits that provision because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only qualified voters to vote in an election.  In addition, Section 11.001, Election Code, provides that to be eligible to vote in this state, a person must be a resident of the territory covered by the election.  The omitted law reads:

Sec. 21.  …  Only constitutionally qualified electors who reside within the district, or if applicable, in the territory to be annexed, shall vote at each such election.  …

(2)  Section 21, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, requires that election results be made to the board.  The revised law omits that requirement because it duplicates Sections 66.022 and 66.051(a), Election Code, which together require the presiding election judge to place the election returns in an envelope and deliver the envelope to the presiding officer of the local canvassing authority.  Section 21 also provides that the board shall canvass the returns of a bond election.  The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.  The omitted law reads:

Sec. 21.  …  Returns of the results of the election shall be made to the board.  [The board shall] canvass the returns for each election and … .

(3)  Section 21, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, requires that all district elections be held in accordance with the Election Code.  The revised law omits that provision because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state.  The omitted law reads:

Sec. 21.  …  All elections held pursuant to this Act shall be held in accordance with the terms of the Texas Election Code to the extent that such code is not inconsistent with the provisions of this Act.

Revisor's Note

(End of Subchapter)

(1)  Section 8(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may contract with any person for the purchase or sale of water and for any other district purpose.  The revised law omits that provision because it duplicates, in substance, Section 49.213(b), Water Code, which authorizes the district to enter into a contract with any person for any district purpose, and part of Section 49.213(c), Water Code, which authorizes the district to enter into a contract for the purchase or sale of water.  The district may enforce a contract or agreement under Section 49.066, Water Code, which states that "[a] district may sue and be sued in the courts of this state."  The omitted law reads:

Sec. 8.  (a)  The district may enter into and enforce contracts and agreements for the purchase or sale of water, and for any other purpose relating to its powers, with any person, firm, corporation, public agency, political subdivision, the state, or from the United States or any of its agencies. …

(2)  Section 8(c), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the rights, powers, privileges, authority, and functions granted to the district are subject to supervision by the state through the Texas Water Rights Commission, subject to "the provisions of this Act, and Chapter 50 of the Water Code."  The revised law omits the provision as unnecessary.  As explained by the revisor's note to Section 6904.152, the Texas Commission on Environmental Quality is the successor agency to the former Texas Water Rights Commission, and therefore the provision duplicates Section 12.081, Water Code, which provides for state supervision of districts (such as this district) created under Section 59, Article XVI, Texas Constitution, and which applies to the district on its own terms.  The reference to Chapter 50, Water Code, is omitted because supervision of the district under that chapter is provided only under Section 50.107, which also applies by its own terms.  The omitted law reads:

(c)  The rights, powers, privileges, authority, and functions herein granted to the district shall be subject to the continuing right of supervision of the state, to be exercised by and through the Texas Water Rights Commission, subject to the provisions of this Act, and Chapter 50 of the Water Code.

[Sections 6904.163-6904.200 reserved for expansion]

SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 6904.201.  IMPOSITION OF TAX.  (a)  The district may impose a tax, not to exceed 25 cents on each $100 valuation of taxable property in the district, for:

(1)  maintenance purposes, including money for planning, maintaining, repairing, and operating all necessary plants, works, facilities, improvements, appliances, and equipment of the district;

(2)  paying costs of proper services, engineering, and legal fees; and

(3)  organization and administrative expenses.

(b)  The district may not impose a maintenance tax unless the tax is approved by a majority of the voters voting at an election held for that purpose.  (Acts 65th Leg., R.S., Ch. 713, Secs. 12(a), (b).)

Source Law

Sec. 12.  (a)  The district may levy and collect a tax, not to exceed 25 cents on the $100 valuation of taxable property in the district, for maintenance purposes, including funds for planning, maintaining, repairing, and operating all necessary plants, works, facilities, improvements, appliances, and equipment of the district and for paying costs of proper services, engineering, and legal fees, and organization and administrative expenses.

(b)  A maintenance tax may not be levied until it is approved by a majority of the qualified electors voting at an election held for that purpose.

Revised Law

Sec. 6904.202.  DEPOSITORY.  (a)  The board shall designate one or more banks inside or outside the district to serve as the depository for the district's money.

(b)  District money shall be deposited in the depository designated by the board, except that:

(1)  bond proceeds and money pledged to pay bonds, to the extent provided in a resolution or trust indenture authorizing or securing district bonds, may be deposited with another bank or trustee named in the bond resolution or trust indenture; and

(2)  money shall be remitted to each paying agent for the payment of principal of and interest on the bonds.

(c)  To the extent that money in a depository bank or the trustee bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of municipal money.  (Acts 65th Leg., R.S., Ch. 713, Sec. 19 (part).)

Source Law

Sec. 19.  The board shall designate one or more banks inside or outside the district to serve as depository for the funds of the district.  All funds of the district shall be deposited in the depository bank or banks, except that bond proceeds and funds pledged to pay bonds may, to the extent provided in any resolution or trust indenture authorizing or securing bonds of the district, be deposited with any other bank or trustee named in the bond resolution or trust indenture, and except that funds shall be remitted to each paying agent for the payment of principal of and interest on the bonds.  To the extent that funds in the depository banks and the trustee bank are not insured by the F.D.I.C., they shall be secured in the manner provided by law for the security of city funds… .

Revisor's Note

Section 19, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the "F.D.I.C."  The revised law substitutes a reference to the "Federal Deposit Insurance Corporation" because that is the full name of that entity.

Revised Law

Sec. 6904.203.  INVESTMENT OF DISTRICT MONEY.  The board may invest district money in obligations and make time deposits of district money in a manner determined by the board or in the manner permitted or required in a resolution or trust indenture authorizing or securing district bonds.  (Acts 65th Leg., R.S., Ch. 713, Sec. 19 (part).)

Source Law

Sec. 19.  …  The board may invest district funds in obligations and make time deposits of district funds, in such manner as is determined by the board, or in the manner permitted or required in any resolution or trust indenture authorizing or securing bonds of the district.

Revised Law

Sec. 6904.204.  DISTRICT FACILITIES EXEMPT FROM TAXATION AND ASSESSMENT.  The district is not required to pay a tax or assessment on its facilities or any part of its facilities. (Acts 65th Leg., R.S., Ch. 713, Sec. 22 (part).)

Source Law

Sec. 22.  . . .  The district shall not be required to pay any tax or assessment on its facilities or any part of its facilities, and … .

Revisor's Note

(End of Subchapter)

Section 23, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, includes various provisions relating to procedures for the assessment and collection of property taxes.  The revised law omits those provisions as superseded by Title 1, Tax Code, which was intended as a comprehensive, substantive codification of all property tax law and its administration.  Title 1, Tax Code, was enacted by Chapter 841, Acts of the 66th Legislature, Regular Session, 1979.  Section 6(b) of that act repealed all "general, local, and special laws" that conflicted with that act.  The omitted law reads:

Sec. 23.  (a)  The tax rolls of the city of Hillsboro are adopted and shall constitute the tax rolls of the district until assessment and tax rolls are made by the district.

(b)  [If the district issues and delivers bonds which are payable wholly or partially from ad valorem taxes,] the board annually shall cause the taxable property in the district to be rendered and assessed for ad valorem taxation, and the value of the taxable property to be equalized, and  . . . in accordance with any of the methods set forth in this section, and any method adopted shall remain in effect until changed by the board.

(c)  The laws of this state applicable to general-law cities and towns may be adopted and shall be used to the extent pertinent and practicable.

(d)  The laws of this state applicable to counties may be adopted and shall be used to the extent pertinent and practicable, provided that the board shall have the authority to act as its own board of equalization, or to appoint three resident, qualified electors of the district who own taxable property in the district to act as the board of equalization of the district, and in either case the board of equalization shall qualify and perform the duties prescribed by law for county commissioners courts acting as boards of equalization.

(e)  The board shall be authorized to have the taxable property in the district assessed, its values equalized, and its taxes collected, in whole or in part, by the tax assessors, board of equalization, and tax collectors, respectively, of any county, city, taxing district, or other governmental subdivision in which all or any part of the district is located, and the property may be assessed and the values of the property equalized on the same basis or a different basis than that used by the governmental subdivision.  The property shall be assessed, the values of the property equalized, and the taxes collected, in the manner and for the compensation agreed upon between the appropriate parties, and the functions thus assumed by the officials of the governmental subdivision shall be additional duties pertaining to their offices, respectively.  The ad valorem tax law applicable to each governmental subdivision shall apply to its officials in carrying out functions for the district.

(f)  Under any method used, all taxable property within the district shall be assessed on the same basis and the values shall be equalized by only one board of equalization, in an equal and uniform manner, as required by the Texas Constitution. If the board desires that taxable property be assessed and taxes collected by the tax assessor and collector of more than one governmental subdivision, the board shall either act as its own board of equalization, or appoint three resident, qualified electors of the district who own taxable property in the district to act as the board of equalization, and in either case the board of equalization shall qualify and perform the duties prescribed by law for commissioners courts acting as boards of equalization.

(g)  Any other method or procedure authorized or permitted by any other statute of the state may be adopted, in whole or in part, to the extent pertinent and practicable.

[Sections 6904.205-6904.250 reserved for expansion]

SUBCHAPTER F.  BONDS

Revised Law

Sec. 6904.251.  AUTHORITY TO ISSUE BONDS.  (a)  The district may issue bonds to carry out any power conferred by this chapter.  The bonds must be authorized by a board resolution.

(b)  The bonds may be payable from and secured by revenue or ad valorem taxes, or both revenue and ad valorem taxes, of the district, in the manner and under the terms  of the resolution authorizing the issuance of the bonds.  (Acts 65th Leg., R.S., Ch. 713, Secs. 13(a), (b) (part), (c), (e) (part).)

Source Law

Sec. 13.  (a)  For the purpose of carrying out any power or authority conferred by this Act, the district may issue its negotiable bonds to be payable from and secured by revenues or ad valorem taxes, or both revenues and ad valorem taxes, of the district, in the manner and under the terms and conditions provided in the resolution authorizing the issuance of the bonds.

(b)  The bonds shall be authorized by resolution of the board and … .

(c)  Bonds may be issued in more than one series and from time to time as required for carrying out the purposes of this Act.

(e)  The district also may issue bonds payable from ad valorem taxes … or may issue bonds [secured by and] payable from both taxes and revenues of the district … .

Revisor's Note

(1)  Section 13(a), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to issue "negotiable" bonds.  The revised law omits "negotiable" because under Section 1201.041, Government Code, a public security is a negotiable instrument.  Section 1201.041, Government Code, applies to district bonds by application of Section 1201.002, Government Code.

(2)  Section 13(c), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, states that bonds may be issued in "more than one series and from time to time."  The revised law omits "more than one series" because it duplicates a provision of Section 1201.022, Government Code, which applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits "from time to time" as unnecessary because the power to issue bonds implies the power to do so at any time.

Revised Law

Sec. 6904.252.  FORM OF BONDS.  District bonds must be:

(1)  issued in the district's name;

(2)  signed by the president or vice president; and

(3)  attested by the secretary.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(b) (part).)

Source Law

(b)  The bonds … shall be issued in the name of the district, signed by the president or vice-president, attested by the secretary and  … .

Revisor's Note

Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that bonds must bear the seal of the district and authorizes facsimile "printed or lithographed" signatures and seals.  The revised law omits those provisions as unnecessary.  The requirement that the bonds bear the seal of the district was impliedly repealed by Section 3, Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes) (revised in relevant part in 1999 as Section 1201.026(a), Government Code), which provides that bonds may be signed with or without a seal.  The authorization for the use of printed or lithographed signatures duplicates Section 1201.026(a), Government Code, which also provides that bonds and interest coupons may be signed or otherwise executed with manual or facsimile signatures.  The omitted law reads:

(b)  [The bonds] … shall bear the seal of the district.  It is provided, however, that the signatures of the president or the vice-president, or the secretary, or of both may be printed or lithographed on the bonds if authorized by the board and that the seal of the district may be impressed on the bonds or may be printed or lithographed on the bonds… .

Revised Law

Sec. 6904.253.  MATURITY.  District bonds must mature not later than 40 years after the date of their issuance.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(b) (part).)

Source Law

(b)  . . .  The bonds shall mature serially or otherwise in not to exceed 40 years from their date and … .

Revisor's Note

Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds shall mature "serially or otherwise."  The revised law omits the quoted language because it duplicates Section 1201.022(a)(1), Government Code, applicable to the revised law by application of Section 1201.002, Government Code.

Revised Law

Sec. 6904.254.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES.  (a)  Bonds, other than refunding bonds, payable wholly or partly from ad valorem taxes may not be issued unless authorized by a majority of the district voters voting at an election.

(b)  The board may issue bonds not payable wholly or partly from ad valorem taxes without an election. (Acts 65th Leg., R.S., Ch. 713, Sec. 16(a) (part).)

Source Law

Sec. 16.  (a)  No bonds payable wholly or partially from ad valorem taxes, except refunding bonds, may be issued unless authorized at an election and unless a majority of the votes cast is in favor of the issuance of the bonds. …  Bonds not payable wholly or partially from ad valorem taxes may be issued without an election.

Revised Law

Sec. 6904.255.  BONDS SECURED BY REVENUE; ADDITIONAL BONDS.  (a)  Bonds issued under this subchapter may be secured by a pledge of all or part of the district's revenue, or by all or part of the revenue of one or more contracts or other revenue or income specified by board resolution or a trust indenture securing the bonds.  The pledge may reserve the right, under conditions specified by the pledge, to issue additional bonds that will be on a parity with or subordinate to the bonds then being issued.

(b)  The district may issue bonds secured by both taxes and revenue of the district described by Subsection (a).  (Acts 65th Leg., R.S., Ch. 713, Secs. 13(d), (e) (part).)

Source Law

(d)  The bonds may be secured by a pledge of all or any part of the revenues of the district, or by all or any part of the revenues of any one or more contracts or other revenues or income specified by resolution of the board or in any trust indenture securing the bonds.  The pledge may reserve the right, under conditions specified in it, to issue additional bonds which will be on a parity with or subordinate to the bonds then being issued.

(e)  The district … may issue bonds secured by and [payable from] both taxes and revenues of the district described in Subsection (d) of this section… .

Revised Law

Sec. 6904.256.  BONDS PAYABLE FROM AD VALOREM TAXES.  (a)  If bonds are issued payable wholly or partly from ad valorem taxes, the board shall annually impose a tax on the taxable property in the district in an amount sufficient to pay the principal of and interest on the bonds when due.

(b)  The district may adopt the rate of a tax imposed under Subsection (a) after giving consideration to the money received from the pledged revenue that may be available for payment of principal and interest, to the extent and in the manner permitted by the resolution authorizing the issuance of the bonds. (Acts 65th Leg., R.S., Ch. 713, Secs. 13(e) (part), 23(b) (part).)

Source Law

[Sec. 13]

(e)  [The district also may issue bonds payable from ad valorem taxes] to be levied on all taxable property in the district, … .  Where bonds are issued payable wholly or partially from ad valorem taxes, the board shall levy a tax sufficient to pay the principal of and interest on the bonds when due, but the rate of the tax for any year may be fixed after giving consideration to the money received from the pledged revenues which may be available for payment of principal and interest, to the extent and in the manner permitted by the resolution authorizing the issuance of the bonds.

[Sec. 23]

(b)  If the district issues and delivers bonds which are payable wholly or partially from ad valorem taxes, [the board annually shall cause the taxable property in the district to be rendered and assessed for ad valorem taxation] … the ad valorem taxes in the district to be collected, … .

Revisor's Note

Section 13(e), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the rate of the property tax "for any year" may be "fixed" by the board.  The revised law substitutes "adopt" for "fixed" to conform to the terminology used in Section 26.05, Tax Code.  The revised law omits "for any year" because it duplicates Section 26.05(a), Tax Code, which provides that the governing body of a taxing unit shall adopt a tax rate annually.

Revised Law

Sec. 6904.257.  ADDITIONAL SECURITY.  (a)  Bonds, including refunding bonds, authorized by this subchapter that are not payable wholly from ad valorem taxes may be additionally secured, at the discretion of the board, by a deed of trust or mortgage lien on physical property of the district, franchises, easements, water rights and appropriation permits, leases, contracts, and all rights appurtenant to the property, vesting in the trustee power to:

(1)  sell the property for the payment of the 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 property, facilities, and rights purchased; and

(2)  is entitled to maintain and operate the property, facilities, and rights.  (Acts 65th Leg., R.S., Ch. 713, Sec. 15 (part).)

Source Law

Sec. 15.  Any bonds, including refunding bonds, authorized by this law, not payable wholly from ad valorem taxes … .  The bonds, within the discretion of the board, may be additionally secured by a deed of trust or mortgage lien upon physical properties of the district and all franchises, easements, water rights and appropriation permits, leases, and contracts and all rights and appropriation permits, leases, and contracts and all rights appurtenant to these properties, vesting in the trustee power to sell the properties for the payment of indebtedness, power to operate the properties, and all other powers and authority for the further security of the bonds… .  Any purchaser, under a sale under the deed of trust lien where one is given, shall be the absolute owner of properties, facilities, and rights so purchased and shall have the right to maintain and operate them.

Revised Law

Sec. 6904.258.  TRUST INDENTURE.  (a)  A bond issued under this subchapter, including a refunding bond, that is not payable wholly from ad valorem taxes may be additionally secured by a trust indenture.  The trustee may be a bank with trust powers located inside or outside the state.

(b)  A trust indenture, regardless of the existence of the deed of trust or mortgage lien on the property, may:

(1)  provide for the security of the bonds and the preservation of the trust estate in the manner prescribed by the board;

(2)  provide for amendment or modification of the trust indenture;

(3)  provide for the issuance of bonds to replace lost or mutilated bonds;

(4)  condition the right to spend district money or sell district property on the approval of a licensed engineer selected as provided by the trust indenture; and

(5)  provide for the investment of district money.  (Acts 65th Leg., R.S., Ch. 713, Sec. 15 (part).)

Source Law

Sec. 15.  Any bonds, including refunding bonds, authorized by this law, not payable wholly from ad valorem taxes, may be additionally secured by a trust indenture under which the trustee may be a bank having trust powers, situated either inside or outside of the state.  …  Such trust indenture, regardless of the existence of the deed of trust or mortgage lien on the properties, may contain any provisions prescribed by the board for the security of the bonds and the preservation of the trust estate, and may make provision for amendment or modification thereof and the issuance of bonds to replace lost or mutilated bonds, and may condition the right to expend district money or sell district property upon approval of a registered professional engineer selected as provided therein, and may make provision for the investment of funds of the district… .

Revisor's Note

Section 15, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to a "registered professional engineer."  The revised law substitutes "licensed engineer" for the quoted language because under Chapter 1001, Occupations Code, engineers are licensed, not registered.

Revised Law

Sec. 6904.259.  CHARGES FOR DISTRICT SERVICES.  (a)  If district bonds payable wholly from revenue are issued, the board shall set and revise the rates of compensation for water sold and services provided by the district.  The rates must be sufficient to:

(1)  pay the expense of operating and maintaining district facilities;

(2)  pay the principal of and interest on the bonds when due; and

(3)  maintain the reserve fund and other funds as provided in the resolution authorizing the bonds.

(b)  If bonds payable partly from revenue are issued, the board shall set the rate of compensation for water sold and any other services provided by the district.  The rate must be sufficient to ensure compliance with the resolution authorizing the bonds or the trust indenture securing the bonds.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(f).)

Source Law

(f)  Where bonds payable wholly from revenues are issued, the board shall fix, and from time to time revise, the rates of compensation for water sold and services rendered by the district which will be sufficient to pay the expense of operating and maintaining the facilities of the district and to pay the principal of and interest on the bonds when due, and to maintain the reserve and other funds as provided in the resolution authorizing the bonds.  Where bonds payable partially from revenues are issued, the board shall fix, and from time to time revise, the rate of compensation for water sold, and any other services rendered by the district, which will be sufficient to assure compliance with the resolution authorizing the bonds or the trust indenture securing the bonds.

Revisor's Note

Section 13(f), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that the board shall fix and "from time to time" revise the rates the district charges for use of its facilities or services.  The revised law omits the quoted language because the duty to set the rates includes the duty to revise them from time to time.

Revised Law

Sec. 6904.260.  USE OF BOND PROCEEDS.  (a)  The district may set aside an amount of proceeds from the sale of bonds issued under this subchapter for:

(1)  the payment of interest expected to accrue during construction not to exceed three years;

(2)  a debt service reserve fund; and

(3)  other funds as may be provided in the resolution authorizing the bonds or in the trust indenture.

(b)  The district may use proceeds from the sale of the bonds to pay any expense necessarily incurred in accomplishing the purpose of the district, including any expense of issuing and selling the bonds.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(g).)

Source Law

(g)  From the proceeds from the sale of the bonds, the district may set aside an amount for the payment of interest expected to accrue during construction not to exceed three years, a debt service reserve and other funds as may be provided in the resolution authorizing the bonds or in the trust indenture.  Proceeds from the sale of the bonds may also be used for the payment of all expenses necessarily incurred in accomplishing the purpose for which this district is created, including expenses of issuing and selling the bonds.

Revised Law

Sec. 6904.261.  APPOINTMENT OF RECEIVER.  (a)  On default or a threatened default in the payment of principal of or interest on bonds issued under this subchapter that are payable wholly or partly from revenue, a court may, on petition of the holders of outstanding bonds, appoint a receiver for the district.

(b)  The receiver may collect and receive all district income, except taxes, employ and discharge district agents and employees, take charge of money on hand, except money received from taxes, unless commingled, and manage the proprietary affairs of the district without consent or hindrance by the board.

(c)  The receiver may be authorized to sell or contract for the sale of water or to renew those contracts with the approval of the court that appointed the receiver.

(d)  The court may vest the receiver with any other power or duty the court finds necessary to protect the bondholders.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(h) (part).)

Source Law

(h)  In the event of a default or a threatened default in the payment of principal of or interest on bonds payable wholly or partially from revenues, any court of competent jurisdiction may, upon petition of the holders of outstanding bonds, appoint a receiver with authority to collect and receive all income of the district, except taxes, employ and discharge agents and employees of the district, take charge of funds on hand, except funds received from taxes, unless commingled, and manage the proprietary affairs of the district without consent or hindrance by the board.  The receiver may also be authorized to sell or make contracts for the sale of water or renew the contracts with the approval of the court appointing him.  The court may vest the receiver with other powers and duties as the court may find necessary for the protection of the holders of the bonds.  …

Revisor's Note

Section 13(h), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to a court "of competent jurisdiction."  The revised law omits the quoted language because the general laws of civil jurisdiction determine which courts have "competent jurisdiction" over the matter.  For example, see Section 24.303, Government Code, for the jurisdiction of certain district courts to appoint receivers.

Revised Law

Sec. 6904.262.  REFUNDING BONDS.  (a)  The district may issue refunding bonds to refund outstanding bonds issued under this subchapter and interest on those bonds.

(b)  Refunding bonds may:

(1)  be issued to refund bonds of more than one series;

(2)  combine the pledges for the outstanding bonds for the security of the refunding bonds; or

(3)  be secured by a pledge of other or additional revenue or mortgage liens.

(c)  The provisions of this subchapter regarding the issuance of other bonds, their security, and the remedies of the holders apply to refunding bonds.

(d)  The comptroller shall register the refunding bonds on surrender and cancellation of the bonds to be refunded.

(e)  Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in a bank at which the bonds to be refunded are payable.  In that case, the refunding bonds may be issued in an amount sufficient to pay the principal of and interest and any required redemption premium on the bonds to be refunded to any redemption date or to their maturity date, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded.

(f)  An election is not required for refunding bonds.

(g)  The district may also issue refunding bonds under any other applicable law.  (Acts 65th Leg., R.S., Ch. 713, Sec. 14.)

Source Law

Sec. 14.  The district is authorized to issue refunding bonds for the purpose of refunding any outstanding bonds authorized by this Act and interest on the bonds.  The refunding bonds may be issued to refund more than one series of outstanding bonds and combine the pledges for the outstanding bonds for the security of the refunding bonds and may be secured by other or additional revenues and mortgage liens.  The provisions of this Act with reference to the issuance by the district of other bonds, their security, and their approval by the attorney general and the remedies of the holders shall be applicable to refunding bonds.  Refunding bonds shall be registered by the comptroller upon surrender and cancellation of the bonds to be refunded; but in lieu thereof, the resolution authorizing their issuance may provide that they shall be sold and the proceeds of the sale deposited in the bank where the original bonds are payable, in which case the refunding bonds may be issued in an amount sufficient to pay all principal coming due, all interest accruing, and any required redemption premium on the bonds being refunded to or through any date upon which they are subject to redemption prior to maturity, or through or at their maturity date or dates, respectively; and the comptroller shall register them without concurrent surrender and cancellation of the original bonds.  The refunding bonds may be issued without having been authorized at an election.  Refunding bonds also may be issued by the district pursuant to any other applicable law.

Revisor's Note

Section 14, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, refers to the "approval by the attorney general" of refunding bonds.  The revised law omits the quoted language because it is superseded by Section 1202.003, Government Code, enacted in 1987 as Section 3.002(a), Chapter 53, Acts of the 70th Legislature, 2nd Called Session (Article 717k-8, Vernon's Texas Civil Statutes).  That section applies to district bonds by application of Section 1202.001, Government Code.

Revised Law

Sec. 6904.263.  LIMITATION ON RIGHTS OF HOLDERS.  The resolution authorizing the bonds or the trust indenture securing the bonds may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income.  (Acts 65th Leg., R.S., Ch. 713, Sec. 13(h) (part).)

Source Law

(h)  …  The resolution authorizing the issuance of the bonds, or the trust indenture securing them, may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income.

Revised Law

Sec. 6904.264.  BONDS EXEMPT FROM TAXATION.  A bond issued under this subchapter, the transfer of the bond, and income from the bond, including profits made on the sale of the bond, are exempt from taxation in this state.  (Acts 65th Leg., R.S., Ch. 713, Sec. 22 (part).)

Source Law

Sec. 22.  …  the bonds issued thereunder and their transfer and the income therefrom, including the profits made on the sale, shall at all times be free from taxation within this state.

Revised Law

Sec. 6904.265.  DETACHMENT OF DISTRICT TERRITORY AFTER ISSUANCE OF BONDS.  Territory may not be detached from the district after the issuance of bonds payable from revenue or taxes.  (Acts 65th Leg., R.S., Ch. 713, Sec. 16(a) (part).)

Source Law

(a)  …  No territory may be detached from the district after the issuance of bonds which are payable from revenues or taxes or both.  …

Revisor's Note

(End of Subchapter)

(1)  Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds may be sold at a price and under terms that the board determines are the most advantageous reasonably obtainable.  The revised law omits that provision because it duplicates or is superseded by provisions of general law.  Section 1204.006(b), Government Code, provides that an issuer may sell public securities at any price.  Section 1204.006(b) applies to district bonds by application of Section 1204.001, Government Code.  Section 1201.022, Government Code, provides that an issuer may sell public securities "under the terms determined by the governing body of the issuer to be in the issuer's best interests."  Section 1201.022 applies to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

(b)  …  The bonds … may be sold at a price and under terms determined by the board to be the most advantageous reasonably obtainable, … .

(2)  Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds may bear interest at a rate not to exceed 10 percent.  The revised law omits that provision because it is superseded by other law.  Section 13(b) was enacted in 1977 and was impliedly amended by the subsequent amendment of Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).  The maximum interest rate noted in Chapter 3 was revised in 1999 as Section 1204.006, Government Code.  Section 1204.006 permits a public agency to issue public securities at any net effective interest rate of 15 percent or less.  Section 1204.006, Government Code, applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

(b)  … provided that the interest cost to the district, including the discount, if any, does not exceed 10 percent a year, and … .

(3)  Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds may be redeemed before maturity at the time and price specified in the bonds.  The revised law omits that provision because it duplicates Sections 1201.021 and 1201.022, Government Code, which provide that a public security may be redeemed before maturity and be payable in specified amounts and at specified times.  Those sections apply to district bonds by the application of Section 1201.002, Government Code.  The omitted law reads:

(b)  …  within the discretion of the board may be made callable prior to maturity at times and prices prescribed in the bonds and … .

(4)  Section 13(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that district bonds may be registered as to principal or as to principal and interest.  The revised law omits that provision because it duplicates Section 1201.024, Government Code.  That section applies to district bonds by the application of Section 1201.002, Government Code.  The omitted law reads:

(b)  …  may be made registrable as to principal or as to both principal and interest.

(5)  Section 16(b), Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, requires the district to secure approval from the Texas Water Rights Commission before issuing bonds for improvements, as provided in Section 51.421, Water Code.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 51.421 and 51.422, Water Code, and enacted Sections 49.181 and 49.182, Water Code, to govern the authority of the commission over the issuance of district bonds and supervision by the commission of projects and improvements, respectively.  A reference to Sections 49.181 and 49.182, Water Code, is unnecessary because those sections apply to the district under Sections 49.001 and 49.002, Water Code, without an express reference to those sections in this chapter.  The omitted law reads:

(b)  Before the district issues any bonds for improvements, it shall secure prior approval from the Texas Water Rights Commission as provided in Section 51.421, Water Code.

(6)  Section 17, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, requires the district to deliver bonds it issues to the attorney general for examination and approval.  Section 17 also requires the attorney general to approve district bonds if the bonds were authorized under law.  In addition, Section 17 provides that after approval the bonds must be registered with the comptroller and that after approval and registration the bonds are incontestable and constitute binding obligations of the district.  The revised law omits those provisions as superseded by Chapter 1202, Government Code (enacted as Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003, Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller. Section 1202.006, Government Code, provides that after approval and registration the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 17.  After any bonds, including refunding bonds, are authorized by the district, the bonds and the proceedings relating to their issuance shall be submitted to the attorney general for his examination as to their validity… .  If he finds that the bonds have been authorized and … in accordance with the Constitution and laws of the State of Texas, he shall approve the bonds and … , and the bonds then shall be registered by the comptroller of public accounts.  Thereafter the bonds, and … are valid and binding obligations in accordance with their terms for all purposes and are incontestable in any court, or other forum, for any reason.

(7)  Section 17, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, details various procedures regarding approval of bond contracts and proceedings by the attorney general.  The revised law omits the portion of Section 17 regarding the validity and incontestability of a contract the proceeds of which are pledged to the payment of a bond as impliedly repealed by Section 1202.006, Government Code (enacted as Section 3.002(d), Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.006, Government Code, provides that after approval and registration of the bond, the bond and contract are incontestable for any reason.  Section 1202.006 applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 17.  … If the bonds recite that they are secured by a pledge of the revenues or proceeds of a contract previously made between the district and any city, or other public agency or political subdivision, or other entity, a copy of the contract and the proceedings of the city or other public agency or political subdivision, or other entity, authorizing the contract also shall be submitted to the attorney general.  [If he finds that] … the contracts have been made in accordance with the Constitution and laws of the State of Texas, he shall approve … the contracts, … .  Thereafter … the contracts, if any, are valid and binding obligations in accordance with their terms for all purposes and are incontestable in any court, or other forum, for any reason.

(8)  Section 20, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, lists the entities for which district bonds are legal and authorized investments.  Section 20 also provides that district bonds may secure deposits of public funds of the state or political subdivisions.  The revised law omits those provisions because they duplicate, in substance, Section 49.186, Water Code.  The omitted law reads:

Sec. 20.  All bonds of the district are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, and for the sinking fund of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas.  The bonds are eligible to secure the deposit of any and all public funds of the State of Texas, and any and all public funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas, and the bonds are lawful and sufficient security for these deposits to the extent of their value, when accompanied by all unmatured coupons appurtenant thereto.

Revisor's Note

(End of Chapter)

(1)  Section 24, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, states that the district may not issue bonds or enter into contracts until an election confirming the creation of the district has been held.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 24.  The foregoing provisions notwithstanding, the district shall not be empowered to issue any bonds or enter into any contract until an election shall be held on the question of the creation of the district and a majority of the qualified electors voting at such election shall vote in favor of such creation.  Such question may be presented on any date selected by the board of directors and may be presented concurrently with any proposition required herein to be subjected to an election.

(2)  Section 25, Chapter 713, Acts of the 65th Legislature, Regular Session, 1977, provides that proof of publication of the constitutionally required notice has been made.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 25.  Proof of publication of the constitutional notice required under the provisions of Article XVI, Section 59(d), of the Texas Constitution, has been made in the manner provided, and a copy of the notice and the bill as originally introduced have been delivered to the Governor of the State of Texas as required in the constitutional provision, and the notice and delivery are found and declared to be proper and sufficient to satisfy the requirements.