TLC: Special District Local Laws Code Proposed Chapters

81C424(3) CAE

CHAPTER 8288. MEEKER MUNICIPAL WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8288.001. DEFINITIONS ............................... 3

Sec. 8288.002. NATURE OF DISTRICT ........................ 3

Sec. 8288.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE .... 4

Sec. 8288.004. LIBERAL CONSTRUCTION OF CHAPTER ........... 4

Sec. 8288.005. DISTRICT TERRITORY ........................ 5

[Sections 8288.006-8288.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8288.051. COMPOSITION OF BOARD; TERMS ............... 7

Sec. 8288.052. QUALIFICATIONS FOR OFFICE ................. 9

Sec. 8828.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS .... 10

Sec. 8288.054. OFFICERS AND ASSISTANTS ................... 11

Sec. 8288.055. OFFICER DUTIES ............................ 11

Sec. 8288.056. MEETINGS .................................. 12

[Sections 8288.057-8288.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8288.101. DISTRICT POWERS ........................... 14

Sec. 8288.102. GENERAL POWERS REGARDING WATER ............ 20

Sec. 8288.103. GENERAL POWERS REGARDING WASTE ............ 21

Sec. 8288.104. GENERAL POWERS REGARDING GARBAGE

COLLECTION AND DISPOSAL ................. 21

Sec. 8288.105. GENERAL CONTRACT POWERS ................... 22

Sec. 8288.106. AUTHORITY OF PUBLIC AGENCIES AND

POLITICAL SUBDIVISIONS TO CONTRACT

WITH DISTRICT ........................... 24

Sec. 8288.107. CONVEYANCE OF PROPERTY TO DISTRICT ........ 25

Sec. 8288.108. ACQUISITION OF EXISTING FACILITIES ........ 25

Sec. 8288.109. EMINENT DOMAIN ............................ 26

Sec. 8288.110. COST OF RELOCATING OR ALTERING

PROPERTY; RIGHTS-OF-WAY AND EASEMENTS ... 27

[Sections 8288.111-8288.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8288.151. IMPOSITION OF MAINTENANCE TAX;

PROHIBITION ON OTHER TAXES OR

ASSESSMENTS ............................. 30

Sec. 8288.152. ELECTION TO IMPOSE TAX .................... 32

Sec. 8288.153. DEPOSITORY ................................ 33

Sec. 8288.154. INVESTMENT OF DISTRICT MONEY .............. 34

Sec. 8288.155. DISTRICT FACILITIES EXEMPT FROM

TAXATION AND ASSESSMENT ................. 35

[Sections 8288.156-8288.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8288.201. AUTHORITY TO ISSUE BONDS .................. 36

Sec. 8288.202. FORM OF BONDS ............................. 37

Sec. 8288.203. MATURITY .................................. 38

Sec. 8288.204. BONDS SECURED BY REVENUE; ADDITIONAL

BONDS ................................... 38

Sec. 8288.205. ADDITIONAL SECURITY ....................... 39

Sec. 8288.206. TRUST INDENTURE ........................... 40

Sec. 8288.207. CHARGES FOR DISTRICT SERVICES ............. 40

Sec. 8288.208. STATE PLEDGE REGARDING RIGHTS AND

REMEDIES OF BONDHOLDERS ................. 41

Sec. 8288.209. USE OF BOND PROCEEDS ...................... 42

Sec. 8288.210. APPOINTMENT OF RECEIVER ................... 42

Sec. 8288.211. REFUNDING BONDS ........................... 44

Sec. 8288.212. OTHER REMEDIES AND COVENANTS .............. 46

Sec. 8288.213. LIMITATION ON RIGHTS OF BONDHOLDERS ....... 46

Sec. 8288.214. BONDS EXEMPT FROM TAXATION ................ 47

CHAPTER 8288. MEEKER MUNICIPAL WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 8288.001. DEFINITIONS. In this chapter:

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

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

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

(4) "District" means the Meeker Municipal Water District. (Acts 65th Leg., R.S., Ch. 714, Secs. 1 (part), 4(a) (part), 15(a) (part); New.)

Source Law

Sec. 1. … [a … district …] to be known as "Meeker Municipal Water District" (the "district"), … .

Sec. 4. (a) [The district shall be governed by] a board of directors (the "board"), … .

Sec. 15. (a) … bonds or notes (hereinafter called "bonds").

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. 8288.002. NATURE OF DISTRICT. The district is a conservation and reclamation district in Jefferson County created under Section 59, Article XVI, Texas Constitution. (Acts 65th Leg., R.S., Ch. 714, Sec. 1 (part).)

Source Law

Sec. 1. Under and pursuant to the provisions of Article XVI, Section 59, of the Texas Constitution, a conservation and reclamation district is hereby created and established in Jefferson County, Texas, … .

Revisor's Note

Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the district is "created and established" in Jefferson County, Texas. The revised law omits "established" because the meaning of that word is included in the meaning of "created."

Revised Law

Sec. 8288.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries. The district, in carrying out the purposes of this chapter, will be performing an essential public function under the constitution. (Acts 65th Leg., R.S., Ch. 714, Secs. 3, 22 (part).)

Source Law

Sec. 3. It is determined and found that all of the land and other property included within the boundaries of the district will be benefited by the works and project which are to be accomplished by the district pursuant to the powers conferred by the provisions of Article XVI, Section 59, of the Texas Constitution, and that said district was and is created to serve a public use and benefit.

Sec. 22. The accomplishment of the purposes stated in this Act is for the benefit of the people of this state and for the improvement 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… .

Revised Law

Sec. 8288.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effect the purposes, powers, rights, and functions stated in this chapter. (Acts 65th Leg., R.S., Ch. 714, Sec. 23 (part).)

Source Law

Sec. 23. … All of the terms and provisions of this Act are to be liberally construed to effectuate the purposes, powers, rights, functions and authorities herein set forth.

Revisor's Note

Section 23, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to the "powers" and "authorities" stated by the act. Throughout this chapter, the revised law omits "authority" and "authorities" in this context because "authority" is included in the meaning of "power."

Revised Law

Sec. 8288.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

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

(3) other law.

(b) The boundaries of the district form a closure. A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to issue bonds or to pay the principal of and interest on the bonds;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board.

(c) The board may redefine the boundaries of the district to correct any mistake in the field notes appearing in Section 1, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977. (Acts 65th Leg., R.S., Ch. 714, Sec. 2; New.)

Source Law

Sec. 2. It is expressly determined and the legislature hereby finds that the boundaries of said district form a closure, and if any mistake is made in copying the field notes in the legislative process, or otherwise a mistake is found to have occurred in the field notes, it shall in no way or manner affect the organization, existence, or validity of said district, or its rights to issue bonds or refunding bonds, or to pay the principal and interest thereon, or the right to assess, levy, and collect taxes, or in any other manner affect the legality or operation of the district or its governing body. The board of directors of the district shall have the power to redefine the boundaries of the district so as to correct any mistake found to exist in the field notes appearing in Section 1 of this Act.

Revisor's Note

(1) The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description and because that description may not be accurate on the effective date of the revision or at the time of a later reading. For the reader's convenience, the revised law includes references to the statutory description of the district's territory and to the authority to change the district's territory under Subchapter H, Chapter 54, Water Code, applicable to the district under Section 14, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, and under Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter. The revised law also includes a reference to the general authority of the legislature to enact other law to change the district's territory.

(2) Section 2, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that a mistake does not affect the right of the district to issue "bonds or refunding bonds." The revised law omits the reference to "refunding bonds" because refunding bonds are included in the meaning of "bonds."

(3) Section 2, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to the district's right to "assess, levy, and collect" a tax. Throughout this chapter, the revised law substitutes "impose" for "assess," "levy," and "collect" because "impose" is the term generally used in Title 1, Tax Code, and includes the assessment, levying, and collection of a tax.

(4) Section 14, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that territory may be annexed to or excluded from the district as provided for a municipal utility district by Section 54.701 et seq., Water Code. The revised law omits the provision as unnecessary. Sections 54.701-54.727, Water Code, were repealed by Section 43, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995. Section 2 of that act added Chapter 49, Water Code, including Subchapter J of that chapter, which now provides for the annexation or exclusion of territory by certain conservation and reclamation districts, including a municipal utility district. A reference to Subchapter J, Chapter 49, Water Code, however, is not required because Chapter 49, Water Code, applies to the district under Sections 49.001 and 49.002. The omitted law reads:

Sec. 14. Territory may be added to or excluded from the district in the manner provided for municipal utility districts in Section 54.701 et seq., of the Water Code.

[Sections 8288.006-8288.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Revised Law

Sec. 8288.051. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of nine elected directors, each of whom occupies a numbered place on the board.

(b) Directors serve staggered terms.

(c) Director elections must be held in the manner provided in the Water Code for municipal utility districts. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(a) (part).)

Source Law

Sec. 4. (a) The district shall be governed by a board of directors [(the "board"),] having nine members. … who shall occupy places on the board to be designated as Places 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. … directors shall be elected by the resident qualified electors of the district for staggered two-year terms at elections held in the manner provided for municipal utility districts in Chapter 54 of the Water Code. …

Revisor's Note

(1) Section 4(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that directors are elected "by the resident qualified electors of the district." The revised law omits the quoted language because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only qualified electors (or "voters" under the terminology of the Election Code) who are residents of the territory covered by the election to vote in an election.

(2) Section 4(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that directors are elected for two-year terms at elections held in the manner provided for municipal utility districts under Chapter 54, Water Code. The revised law omits the reference to two-year terms and to Chapter 54 because Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed the relevant provisions of Chapter 54, Water Code, and enacted Section 49.103, Water Code, which governs the election of directors of municipal utility districts and specifies four-year terms. A reference to Section 49.103, Water Code, is unnecessary because that section applies to the district on its own terms.

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 of that chapter.

(3) Section 4(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that directors hold office until their terms expire and until their successors have been elected and qualified. The revised law omits the reference to a director serving until a successor is elected 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 serving until the term expires because holding office until the expiration of the term is implied or inherent in the concept of a term of office, and Section 17, Article XVI, Texas Constitution, applies regardless of whether the term has ended. The omitted law reads:

Sec. 4. (a) … Each director shall hold office until the expiration of his term and thereafter until his successor is elected and qualified. …

Revised Law

Sec. 8288.052. QUALIFICATIONS FOR OFFICE. To be eligible to be elected or to serve as a director, a person must be a resident, qualified voter of the district. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(b).)

Source Law

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

Revisor's Note

(1) Section 4(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to an "elector" of the district. Throughout this chapter, the revised law substitutes "voter" for "elector" because the terms are synonymous and "voter" is the term used in the Election Code.

(2) Section 4(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, requires a director to be a qualified elector (or "voter" under the terminology of the Election Code (see Revisor's Note (1) to this section)) of the State of Texas and of the district. The revised law omits the reference to the State of Texas because a qualified voter of the district is necessarily a qualified voter of the state.

Revised Law

Sec. 8828.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The district shall act through orders or resolutions adopted by the board.

(b) All directors are entitled to vote.

(c) The affirmative vote of a majority of the directors in attendance, but not fewer than five directors, is necessary to adopt an order or resolution. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(g).)

Source Law

(g) Any five directors shall constitute a quorum, and all directors shall be entitled to vote. The district shall act and proceed by and through orders or resolutions adopted by the board, and the affirmative vote of a majority of the directors in attendance (but in no event less than five directors) shall be necessary to adopt any order or resolution.

Revisor's Note

Section 4(g), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that any five directors on the board constitute a quorum. The revised law omits that provision because five is the number of directors required for a majority from a group of nine and therefore the provision duplicates Section 49.053, Water Code, which provides that a majority of a board constitutes a quorum.

Revised Law

Sec. 8288.054. OFFICERS AND ASSISTANTS. (a) The board shall elect a president, vice president, secretary, and treasurer.

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

(d) The offices of secretary and treasurer:

(1) may be held by one person; and

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

(e) The board may appoint one or more assistant officers who are not required to be directors. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(f) (part).)

Source Law

(f) 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, … and 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 need not be directors, to be assistant officers of the board … .

Revised Law

Sec. 8288.055. 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.

(d) An assistant officer may perform any duties or functions as may be prescribed by the board. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(f) (part).)

Source Law

(f) [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 officers of the board,] to perform such duties or functions as may be designated by the board.

Revisor's Note

Section 4(f), Chapter 714, 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(c), Water Code. The omitted law reads:

(f) … [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… .

Revised Law

Sec. 8288.056. MEETINGS. The board shall have regular meetings at times specified by board resolution or bylaws and shall have special meetings when called by the board president or by any three directors. (Acts 65th Leg., R.S., Ch. 714, Sec. 4(h).)

Source Law

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

Revisor's Note

(End of Subchapter)

(1) Section 4(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to the initial directors and their terms of office. The revised law omits those provisions as executed. The omitted law reads:

(a) … The initial board of directors shall be composed of the following nine persons:

	B. L. Granger		C. B. Alford
	Floyd Riley		Aubrey Jacobs
	Billy Buckner		Steve Ferguson
	Lester Fulmer		E. L. Pinckard
	Curtis Givens

The initial directors named above 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, 5, 6, 7, 8, and 9, respectively.] Places 1, 2, 3, and 4 on the board shall expire on the first Saturday in April, 1978, and Places 5, 6, 7, 8, and 9 on the board shall expire on the first Saturday in April, 1979. At the expiration of the terms of the initial directors, … .

(2) Section 4(a), Chapter 714, 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 in substance Section 49.105, Water Code. The omitted law reads:

(a) … Any vacancy occurring on the board through death, resignation, or otherwise, shall be filled by a majority of the board of directors for the expiration of the term for which the vacating director had been appointed or elected.

(3) Sections 4(c) and (d), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provide that each director shall execute a bond and take the constitutional oath of office prescribed for county commissioners and that the bond and oath of office shall be filed with the district. The revised law omits the provision requiring directors to take an oath of office because Section 1, Article XVI, Texas Constitution, requires all officers in this state to take the oath (or affirmation) before assuming office. The revised law omits the provisions relating to the bond and the filing of the bond and oath because those provisions duplicate Section 49.055, Water Code. The omitted law reads:

(c) As soon as practicable after a director is elected or appointed he shall execute a bond for $10,000 payable to the district and conditioned on the faithful performance of his duties.

(d) All bonds of the directors shall be approved by the board. Each director shall take the oath of office prescribed by the constitution for county commissioners. The bond and oath shall be filed with the district and retained in its records.

(4) Section 4(e), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that directors are entitled to receive fees and reimbursement in the manner provided for directors of municipal utility districts in Chapter 54, Water Code. The revised law omits the provision because Section 54.114, the relevant section of Chapter 54, was repealed by Section 43, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995. Section 2 of Chapter 715 enacted Section 49.060, Water Code, which governs the compensation of directors of municipal utility districts. A reference to Section 49.060, Water Code, is unnecessary because that section applies to the district on its own terms. The omitted law reads:

(e) The directors shall be entitled to receive fees of office, and be reimbursed for expenses, in the same manner provided for directors of municipal utility districts in Chapter 54 of the Water Code.

[Sections 8288.057-8288.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 8288.101. DISTRICT POWERS. The district may exercise any power necessary or appropriate to achieve the purposes of this chapter, including the power to:

(1) adopt an official seal;

(2) adopt and enforce:

(A) bylaws and rules for the conduct of its affairs; and

(B) any rule that a municipal utility district may adopt and enforce under Section 54.205 et seq., Water Code;

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

(4) select a depository or depositories;

(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 other means, in performing a duty or exercising a power under this chapter;

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

(7) lease or rent any land, buildings, structures, or facilities 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, notwithstanding any other law;

(9) in the manner and to the extent permitted by this chapter:

(A) borrow money for a corporate purpose;

(B) enter into an agreement in connection with the borrowing;

(D) provide for and secure the payment of the bonds; and

(E) provide for the rights of the holders of the bonds;

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

(11) operate and maintain an office; and

(12) appoint and determine the duties, tenure, qualifications, and compensation of officers, employees, agents, and professional advisors and counselors considered necessary or advisable by the board, including financial consultants, accountants, attorneys, architects, engineers, appraisers, and financing experts. (Acts 65th Leg., R.S., Ch. 714, Sec. 10 (part).)

Source Law

Sec. 10. The district may exercise all powers necessary or appropriate to carry out, achieve, or effectuate the purposes of this Act, including, without limitation, the following powers:

…

(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, invest, reinvest, 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, 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 public or private sources;

(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 counselors, including, without limitation, financial consultants, accountants, attorneys, architects, engineers, appraisers, and financing experts, as are deemed necessary or advisable by the board;

(8) to borrow money for any of its corporate purposes, to enter into agreements in connection with such borrowing, to issue its negotiable bonds or notes for moneys borrowed, to provide for and secure the payment of its bonds and notes, and to provide for the rights of the holders of its bonds and notes, all in the manner and to the extent permitted by this Act;

… and

(10) to adopt and enforce such reasonable rules and regulations as may be adopted and enforced by municipal utility districts under Section 54.205 et seq., of Chapter 54 of the Water Code.

Revisor's Note

(1) Section 10, Chapter 714, 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 10, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, grants the district certain powers "including, without limitation" the enumerated powers. That section also refers to persons the district may hire "including, without limitation" certain consultants and advisors named in the section. 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 10(1), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may "sue and be sued … in its own name." The revised law omits that provision because it duplicates, in substance, part of Section 49.066, Water Code. Section 10(1) also provides that the district may "plead and be impleaded." The revised law omits that provision because if the district can sue or be sued, it must necessarily also be able to plead and be impleaded in a suit. The omitted law reads:

Sec. 10. [The district may exercise all powers necessary or appropriate …:]

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

(4) Section 10(2), Chapter 714, 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.

(5) Section 10(2), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that the district may adopt and enforce "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" 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.

(6) Section 10(3), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to the district's power regarding its "revenues, income, … funds, and money." The revised law omits "revenues," "income," and "funds" 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.

(7) Sections 10(4) and (5), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refer to "real, personal, or mixed property." The revised law omits references to "real," "personal," and "mixed" property because under Section 311.005(4), Government Code (Code Construction Act), "property" includes real and personal and, by extension, mixed property.

(8) Section 10(5), Chapter 714, 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.

(9) Section 10(6), Chapter 714, 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 public or private 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."

(10) Section 10(8), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the district may issue "negotiable" bonds or notes and take certain other actions with respect to those bonds and notes. The revised law omits "negotiable" because Section 1201.041, Government Code, provides that a public security is a negotiable instrument. Section 1201.041 applies to district bonds and notes by application of Section 1201.002, Government Code. Throughout this chapter, the revised law also omits the reference to "notes" in this context because "notes" is included in the meaning of "bonds," as defined by Section 8288.001 of this chapter.

(11) Section 10(9), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to set and "revise from time to time" certain fees for those who use district facilities or services and to charge and collect those fees. The revised law omits the reference to setting, charging, and collecting fees because it duplicates, in substance, Section 49.212, Water Code. The revised law also omits the reference to revising the fees from time to time because the power to set the fees includes the power to revise them from time to time. The omitted law reads:

Sec. 10. [The district may exercise all powers necessary or appropriate …:]

…

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

(12) Section 10(10), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that the district may adopt and enforce "reasonable rules and regulations" as may be adopted and enforced by municipal utility districts under Section 54.205 et seq., Water Code. The revised law omits "reasonable" because the requirement that the rules be reasonable duplicates Section 54.205, Water Code. The revised law omits "regulations" for the reason stated in Revisor's Note (5) to this section.

Revised Law

Sec. 8288.102. GENERAL POWERS REGARDING WATER. The district has all rights, powers, and privileges necessary or useful to enable it to acquire, provide, supply, deliver, and sell potable water inside or outside its boundaries for any beneficial purpose. (Acts 65th Leg., R.S., Ch. 714, Sec. 6.)

Source Law

Sec. 6. The district shall have and exercise, and is hereby vested with, all rights, powers, privileges, and authority necessary or useful to enable it to acquire, provide, supply, deliver, and sell potable water within and without its boundaries for any beneficial purpose.

Revisor's Note

Section 6, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that the district "shall have and exercise, and is hereby vested with," certain powers. Throughout this chapter, the revised law substitutes "has" for the quoted or similar language because, in context, the terms are synonymous and "has" is more commonly used.

Revised Law

Sec. 8288.103. GENERAL POWERS REGARDING WASTE. The district has all rights, powers, and privileges necessary or useful to enable it to collect, transport, dispose of, and control domestic, industrial, or communal wastes, whether in fluid, solid, or composite state. (Acts 65th Leg., R.S., Ch. 714, Sec. 7.)

Source Law

Sec. 7. The district shall have and exercise, and is hereby vested with, all rights, powers, privileges, and authority necessary or useful to enable it to collect, transport, dispose of, and control domestic, industrial, or communal wastes, whether in fluid, solid, or composite state.

Revised Law

Sec. 8288.104. GENERAL POWERS REGARDING GARBAGE COLLECTION AND DISPOSAL. The district has all rights, powers, and privileges necessary or useful to enable it to provide for garbage collection and disposal in all or part of the district on terms and at rates and charges the board considers just and reasonable to:

(1) preserve the water of rivers and streams in this state; and

(2) aid in the preservation and conservation of the natural resources of this state. (Acts 65th Leg., R.S., Ch. 714, Sec. 8.)

Source Law

Sec. 8. In order to preserve the water of rivers and streams within the district and the state and to aid in the preservation and conservation of the natural resources of the district and the state, the district shall have all rights, powers, privileges, and authority necessary or useful to enable it to provide for the collection and disposal of garbage within all or a portion of the district upon such terms and conditions and for such rates and charges as the board shall deem to be just and reasonable.

Revisor's Note

(1) Section 8, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, permits the district to take certain actions to preserve rivers and streams "within the district and the state" and to preserve the natural resources "of the district and the state." The revised law omits the references to the district in this context because the district is located within the state.

(2) Section 8, Chapter 714, 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" in this context because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 8288.105. GENERAL CONTRACT POWERS. (a) The district may enter into and enforce a contract or agreement necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the district by this chapter or the general law, including a contract or agreement with any person as the board considers necessary or proper for, or in connection with, any power or function of the district for:

(1) the purchase or sale of water;

(2) the collection, transportation, processing, or disposal of waste; or

(3) the construction, acquisition, ownership, financing, operation, maintenance, sale, leasing to or from, or other use or disposition of any facilities authorized to be developed, acquired, or constructed under this chapter or the general law.

(b) The authority to enter into or enforce the contract or agreement includes the authority to enter into or enforce a contract or agreement regarding:

(1) any improvements, structures, facilities, equipment, and other property of any kind in connection with the subject of the contract or agreement;

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

(3) any interests in the property.

(1) may not have a term of more than 40 years; and

(2) may contain provisions the board determines to be in the best interest of the district.

(d) The district may pledge all or part of its revenue to the payment of its obligations under the contract or agreement to the same extent and on the same conditions as it may pledge revenue to secure district bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(a).)

Source Law

Sec. 9. (a) The district may enter into and enforce any and all contracts and agreements necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred upon it by this Act or the general law for terms up to 40 years and with such provisions as the board may determine to be in the best interests of the district, including, without in any way limiting the generality of the foregoing, contracts and agreements with persons, including the State of Texas, the United States of America and any corporation or agency thereof, and districts, cities, towns, persons, organizations, associations, firms, corporations, entities, or others, as the board may deem necessary or proper for, or in connection with, any power or function of the district for the purchase or sale of water, for the collection, transportation, processing, or disposal of waste, or for the construction, acquisition, ownership, financing, operation, maintenance, sale, leasing to or from, or other use or disposition of any facilities authorized to be developed, acquired, or constructed under this Act or the general law, including any improvements, structures, facilities, equipment, and all other property of any kind in connection therewith, and any lands, leaseholds, easements, and any interests in any of the foregoing, and the district may pledge all or any portion of its revenues to the payment of its obligations under such contracts or agreements to the same extent and upon the same conditions as it may pledge revenues to secure the bonds that it may issue under this Act.

Revisor's Note

Section 9(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that "without in any way limiting the generality of the foregoing" power of the district to enter into all necessary or convenient contracts or agreements, the district may enter into contracts and agreements with certain persons in connection with certain district purposes. The revised law omits the quoted language because an accepted principle of statutory construction requires a statute to be given cumulative effect with other statutes unless it provides otherwise or unless the statutes are in conflict. The general principle applies to this revision.

Revised Law

Sec. 8288.106. 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:

(1) the purchase or sale of water;

(2) waste collection, transportation, processing, or disposal; or

(3) any purpose relating to the district's powers or functions. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(b) (part).)

Source Law

(b) All public agencies and political subdivisions of the State of Texas, including specifically all cities, towns, and villages within the district, are hereby authorized to enter into contracts and agreements with the district for the purchase or sale of water, for waste collection, transportation, processing, or disposal, or for any other purpose relating to the district's powers or functions, upon such terms and conditions as the parties may agree. …

Revisor's Note

Section 9(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to a political subdivision of the state "including specifically all cities, towns, and villages within the district." The revised law omits references to "cities, towns, and villages" in this context because those terms are included in the meaning of "political subdivision."

Revised Law

Sec. 8288.107. CONVEYANCE OF PROPERTY TO DISTRICT. A public agency or political subdivision of this state may lease, sell, or otherwise convey to the district, for any consideration that the parties agree is adequate, any of its land, improvements, property, plants, lines, or other facilities related to:

(1) the supply of water; or

(2) waste collection, transportation, processing, or disposal. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(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 to the district any of its lands, improvements, properties, plants, lines, or other facilities related to the supply of water or the collection, transportation, processing, or disposal of waste for any consideration agreed on between the parties to be adequate.

Revised Law

Sec. 8288.108. ACQUISITION OF EXISTING FACILITIES. If the district acquires existing works, improvements, facilities, plants, equipment, or appliances that are completed, partially created, or under construction, the district may:

(1) assume the contracts and obligations of the previous owner; and

(2) perform the obligations of the previous owner in the same manner and to the same extent that any other purchaser or assignee would be bound. (Acts 65th Leg., R.S., Ch. 714, Sec. 9(c).)

Source Law

(c) If the district acquires existing works, improvements, facilities, plants, equipment, and appliances which are completed or partially created or under construction, the district may assume the contracts and obligations of the previous owner and perform the obligations of the previous owner in the same manner and to the same extent that any other purchaser or assignee would be bound.

Revised Law

Sec. 8288.109. EMINENT DOMAIN. (a) To carry out a power conferred by this chapter, the district may exercise the power of eminent domain inside or outside the district to acquire the fee simple title to land, or any other interest in land as determined by the board, and other property and easements, necessary for water wells, water or sewer treatment plants, water or sewer lines, pumping stations and force mains, storage tanks, or other similar facilities.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code. (Acts 65th Leg., R.S., Ch. 714, Sec. 11(a) (part).)

Source Law

Sec. 11. (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 as may be determined by the board, and other property and easements, necessary for water wells, water or sewer treatment plants, water or sewer lines, pumping stations and force mains, storage tanks, or other similar facilities, 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, except that … .

Revisor's Note

(1) Section 11(a), Chapter 714, 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.

(2) Section 11(a), Chapter 714, 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.

(3) Section 11(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that the district is not required to give bond for appeal or bond for costs in suits to which it is a party and is not required to deposit double the amount of any award in any suit relating to eminent domain. The revised law omits those provisions because they duplicate Section 21.021(c), Property Code, and Section 49.066(f), Water Code. Section 21.021(c) and Section 49.066(f) each provide that certain districts are not required to give bond for appeal or bond for costs in suits to which they are a party and that they are not required to make the additional deposit (the equivalent of "double the award") required by Section 21.021(a)(2). The omitted law reads:

(a) … the district shall not be required to give bond for appeal or bond for costs in any condemnation suit or other suit to which it is a party and shall not be required to deposit double the amount of any award in any suit.

Revised Law

Sec. 8288.110. COST OF RELOCATING OR ALTERING PROPERTY; RIGHTS-OF-WAY AND EASEMENTS. (a) If the district's exercise of its eminent domain, police, or other power requires relocating, raising, lowering, rerouting, or changing the grade of or altering the construction of any highway, railroad, electric, transmission, telegraph, or telephone line, conduit, pole, property, or facility or pipeline, the action 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 to provide a comparable replacement without enhancing the facility, after deducting from the cost the net salvage value derived from the old facility.

(b) 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 used facility to its previous condition as nearly as possible at the sole expense of the district. (Acts 65th Leg., R.S., Ch. 714, Secs. 11(c), (d).)

Source Law

(c) 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 country 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.

(d) 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 highway, 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.

Revisor's Note

Section 11(c), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to "city" and "country" roads, highways, and places. The revised law substitutes the term "municipal" for "city" because "municipal" is the term used in the Local Government Code. The revised law also substitutes "county" for "country" because it is clear from the context of the subsection that "country" is a typographical error and that the legislature intended to use the word "county."

Revisor's Note

(End of Subchapter)

(1) Section 9(d), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the rights, powers, privileges, authority, and functions granted to the district are subject to the continuing right of supervision of the state, acting through the Texas Water Rights Commission, including commission authority given under Sections 54.516, 54.517, and 54.030 et seq., Water Code. The revised law omits the provision because the Texas Commission on Environmental Quality is the successor to the Texas Water Rights Commission, and therefore the provision duplicates, in substance, part of Section 12.081, Water Code, which applies to the district. Sections 54.516 and 54.517, Water Code, which granted the commission certain supervisory authority in the issuance of district bonds and in the construction of projects, were repealed in 1995 and replaced by similar Sections 49.181 and 49.182, Water Code, which apply to the district on their own terms. Section 54.030 et seq., Water Code, applies to any conservation and reclamation district that converts to a municipal utility district governed by Chapter 54, Water Code. Those sections also apply on their own terms if they are invoked through the conversion process they describe, so it is not necessary to provide a reference to those sections in this chapter. The omitted law reads:

(d) 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 the Water Code, including but not limited to the authority given under Sections 54.516, 54.517, and 54.030 et seq., of Chapter 54 of the Water Code.

(2) Section 11(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the district has the powers conferred by Section 54.216, Water Code, on municipal utility districts regarding entering land, making surveys, and attending to other district business. The revised law omits that provision because it duplicates in substance Section 49.221, Water Code, which replaced Section 54.216, Water Code, when that section was repealed in 1995. The omitted law reads:

(b) The district shall have the same power as is conferred on municipal utility districts in Section 54.216 of the Water Code, with reference to entering land and making surveys and attending to other business of the district.

[Sections 8288.111-8288.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 8288.151. IMPOSITION OF MAINTENANCE TAX; PROHIBITION ON OTHER TAXES OR ASSESSMENTS. (a) The district may impose a tax, not to exceed 10 cents on each $100 of the assessed value of taxable property in the district according to the most recent certified tax appraisal roll of the district, for:

(1) maintenance purposes, including money for studying, 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.

(c) Except for the maintenance tax authorized by this section, the district may not under this chapter or any other law levy or collect a tax or assessment or create a debt payable from a tax or assessment. (Acts 65th Leg., R.S., Ch. 714, Secs. 12(a), (b) (part), (c).)

Source Law

Sec. 12. (a) The district may levy and collect a tax, not to exceed 10 cents on the $100 valuation of taxable property in the district, for maintenance purposes, including funds for studying, 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. …

(c) Except for the maintenance tax hereinabove authorized, nothing in this Act or in any other act or law shall be construed as authorizing the district to levy or collect taxes or assessments or to create any indebtedness payable out of taxes or assessments.

Revisor's Note

(1) Section 12(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to a tax rate based on the "$100 valuation of taxable property in the district." The revised law substitutes for the quoted language a reference to "each $100 of the assessed value of taxable property in the district according to the most recent certified tax appraisal roll of the district" to conform to the terminology of the Tax Code, including Section 26.01 of that code.

(2) Section 12(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to a majority of the "qualified" voters of the district. The revised law omits "qualified" as unnecessary in this context 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.

Revised Law

Sec. 8288.152. ELECTION TO IMPOSE TAX. (a) The board may order an election to impose a maintenance tax. The election order must specify:

(1) the time and place of the election;

(2) the maximum amount of tax to be authorized;

(3) the form of the ballot; and

(4) other matters the board considers necessary or advisable.

(b) Notice of the election must be given by publishing once a week for two consecutive weeks a substantial copy of the election order in a newspaper of general circulation in the district. The first publication must occur at least 14 days before the date of the election. (Acts 65th Leg., R.S., Ch. 714, Sec. 12(b) (part).)

Source Law

(b) … Such an election may be called by the board. The resolution calling the election shall specify the time and place or places of holding the election, the maximum amount of the maintenance tax to be authorized, the form of the ballot, and other matters deemed necessary or advisable by the board. Notice of the election shall be given by publishing a substantial copy of the resolution calling the election in a newspaper having general circulation in the district, once each week for two consecutive weeks, with the first publication to be at least 14 days prior to the election. …

Revisor's Note

(1) Section 12(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that an election "may be called" by the board to authorize imposing a maintenance tax and refers to the "resolution calling the election." The revised law substitutes "may order" for "may be called" and "election order" for "resolution calling the election" because "order" is the term used in Chapter 3, Election Code.

(2) Section 12(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, requires that election returns be made to the board. The revised law omits that requirement because it duplicates Sections 66.022 and 66.051(a), Election Code. Section 12(b) also requires the board to canvass the election returns. The revised law omits that requirement because it duplicates Section 67.002, Election Code. The omitted law reads:

(b) … The returns of the election shall be made to and canvassed by the board. …

(3) Section 12(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that a district maintenance tax election shall be held in accordance with the Election Code, except as provided by Section 12, Chapter 714. 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, and an exception to the application of the Election Code would apply by its own terms. The omitted law reads:

(b) … The Texas Election Code shall be applicable to elections held under this section, except as otherwise provided herein.

Revised Law

Sec. 8288.153. 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) All 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 the county funds in this state. (Acts 65th Leg., R.S., Ch. 714, 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 Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, they shall be secured in the manner provided by law for the security of funds of counties in the State of Texas… .

Revisor's Note

Section 19, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, refers to the Federal Savings and Loan Insurance Corporation. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Pub. L. No. 101-73) abolished the Federal Savings and Loan Insurance Corporation and provided for the insurance of the deposits of savings and loan associations by the Federal Deposit Insurance Corporation. The revised law is drafted accordingly.

Revised Law

Sec. 8288.154. 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. 714, 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. 8288.155. 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. 714, 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 13, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, establishes certain procedures relating to the imposition 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. 13. (a) The tax rolls of Jefferson County are adopted and shall constitute the tax rolls of the district for purposes of levying and assessing the maintenance tax herein authorized.

(b) The laws of this state applicable to the levy, assessment, and collection of ad valorem taxes by counties may be adopted and shall be used to the extent pertinent and practicable.

[Sections 8288.156-8288.200 reserved for expansion]

SUBCHAPTER E. BONDS

Revised Law

Sec. 8288.201. AUTHORITY TO ISSUE BONDS. (a) The district may issue bonds payable from and secured by district revenue to carry out any power conferred by this chapter. The bonds must be authorized by a board resolution.

(b) The bonds must be issued in the manner and under the terms of the resolution authorizing the issuance of the bonds. (Acts 65th Leg., R.S., Ch. 714, Secs. 15(a) (part), (b) (part).)

Source Law

Sec. 15. (a) For the purpose of carrying out any power or authority conferred by this Act, the district may issue its negotiable bonds or notes to be payable from and secured by revenues of the district, in the manner and under the terms and conditions provided in the resolution authorizing the issuance of the [bonds or notes (hereinafter called "bonds")].

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

Revisor's Note

(1) Section 15(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, authorizes the district to issue "negotiable" bonds or notes. The revised law omits "negotiable" for the reason stated in Revisor's Note (10) to Section 8288.101.

(2) Section 15(c), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, states that bonds may be issued in "more than one series and from time to time as required for carrying out the purposes of this Act." 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 1201.003, Government Code. The revised law omits "from time to time" because the power to issue bonds implies the power to do so at any time. The revised law omits "as required for carrying out the purposes of this Act" because Section 15(a), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, revised as this section, authorizes the district to issue bonds for the purposes of the act. The omitted law reads:

(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.

Revised Law

Sec. 8288.202. 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. 714, Sec. 15(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 15(b), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that district 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 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. 8288.203. MATURITY. District bonds must mature not later than 40 years after the date of their issuance. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(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 15(b), Chapter 714, 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. 8288.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a) District bonds may be secured by a pledge of all or part of the district's revenue, or by all or part of the payments or rentals under one or more contracts or leases specified by board resolution or a trust indenture securing the bonds.

(b) A resolution authorizing the issuance of bonds secured by a pledge of revenue of all or part of the district's facilities may provide that the district shall first pay the expenses of operating and maintaining all or part of the facilities as the board considers appropriate before paying the principal of and interest on the bonds.

(c) In a resolution authorizing the issuance of bonds secured by revenue, contract payments, or lease rentals, the district may reserve the right, under conditions specified by the resolution, to issue additional bonds that will be on a parity with, superior to, or subordinate to the bonds then being issued. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(d).)

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 payments or rentals under any one or more contracts or leases specified by resolution of the board or in any trust indenture securing the bonds. A resolution authorizing the issuance of any bonds secured by a pledge of revenues of all or any part of the district's facilities may provide that the district shall first pay such expenses of operating and maintaining all or any part of such facilities as the board may deem appropriate prior to paying principal of and interest on such bonds. In all of its resolutions authorizing the issuance of bonds secured by revenues, contract payments, or lease rentals, the district may reserve the right, under conditions specified in it, to issue additional bonds which will be on a parity with, superior to, or subordinate to the bonds then being issued.

Revised Law

Sec. 8288.205. ADDITIONAL SECURITY. (a) District bonds may be additionally secured, at the discretion of the board, by a deed of trust or mortgage lien on all or part of the district's physical property, facilities, 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 the property, facilities, and rights purchased; and

(2) is entitled to maintain and operate the property, facilities, and rights. (Acts 65th Leg., R.S., Ch. 714, Sec. 16 (part).)

Source Law

Sec. 16. Any bonds … authorized by this law … . The bonds, within the discretion of the board, may be additionally secured by a deed of trust or mortgage lien upon all or any portion of the district's physical properties, facilities, easements, water 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. 8288.206. TRUST INDENTURE. District bonds authorized by this chapter, including refunding bonds, may be additionally secured by a trust indenture. The trustee may be a bank with trust powers that is located inside or outside the state. (Acts 65th Leg., R.S., Ch. 714, Sec. 16 (part).)

Source Law

Sec. 16. Any bonds, including refunding bonds, authorized by this law, 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… .

Revised Law

Sec. 8288.207. CHARGES FOR DISTRICT SERVICES. If district bonds payable wholly from revenue are issued, the board shall set and revise the rates, fees, and charges assessed for water sold and waste collection and treatment services provided by the district. The rates, fees, and charges must be sufficient to:

(1) pay the expense of operating and maintaining the district facilities that generate the revenue from which the bonds will be paid;

(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. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(e) (part).)

Source Law

(e) Where bonds payable wholly from revenues are issued, the board shall fix, and from time to time revise, the rates, fees, and charges assessed for water sold and waste collection and treatment services rendered by the district which will be sufficient (i) to pay the expense of operating and maintaining those facilities of the district that generate the revenues from which the district's bonds will be paid, (ii) to pay the principal of and interest on the bonds when due, and (iii) to maintain such reserve and other funds as are provided in the resolution authorizing the bonds. …

Revisor's Note

Section 15(e), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the board shall fix and "from time to time" revise the rates, fees, and charges the district assesses for water sold and waste collection and treatment services provided by the district. The revised law omits the quoted language because the duty to set the rates, fees, and charges includes the duty to revise them from time to time.

Revised Law

Sec. 8288.208. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. Without depriving this state of its power to regulate and control the rates, fees, and charges assessed for water sold and waste collection and treatment services provided by the district, the state pledges to and agrees with the holders of district bonds that the state will not exercise its power to regulate and control the rates, fees, and charges in any way that would impair the rights or remedies of the holders of the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(e) (part).)

Source Law

(e) … Without in any way depriving the State of Texas of its power to regulate and control such rates, fees, and charges, the State of Texas does hereby pledge to and agree with the holders of any bonds issued hereunder that the state will not exercise its power to regulate and control such rates, fees, and charges in any way that would impair the rights of remedies of the holders of such bonds.

Revisor's Note

Section 15(e), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the state will not regulate and control the rates, fees, and charges of district bonds in a way that impairs the "rights of remedies" of the holder of a district bond. The revised law substitutes "rights or remedies" for "rights of remedies" because it is clear from the context that "of" is a typographical error and that the legislature intended to use the phrase "rights or remedies."

Revised Law

Sec. 8288.209. USE OF BOND PROCEEDS. (a) The district may set aside an amount of proceeds from the sale of district bonds 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. 714, Sec. 15(f).)

Source Law

(f) 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. 8288.210. APPOINTMENT OF RECEIVER. (a) On default or threatened default in the payment of the principal of or interest on district bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of at least 25 percent of the district's outstanding revenue bonds, appoint a receiver for the district.

(b) The receiver may collect and receive all district revenue, other than taxes, employ and discharge district agents and employees, and take charge of money on hand, other than money received from taxes, unless commingled, and or hindrance by the board.

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

(d) The court may vest the receiver with any other power or duty the court finds necessary to protect the holders of the bonds. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(g) (part).)

Source Law

(g) 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 at least 25 percent of the district's outstanding revenue bonds, appoint a receiver with authority to collect and receive all revenues 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 or hindrance by the board. The receiver may also be authorized to sell or make contracts for the sale of water and the collection and treatment of waste and to renew 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

(1) Section 15(g), Chapter 714, 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 jurisdiction over the matter. For example, see Section 24.303, Government Code, for the jurisdiction of certain district courts to appoint receivers.

(2) Section 15(g), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides for the appointment of a receiver if the district defaults on district bonds and allows the receiver to collect and receive certain district revenue and to take charge of funds of the district "on hand, … and or hindrance by the board." In context, it appears as though the phrase "and or hindrance by the board" is a typographical error, since it is clear from a reading of the section and similar laws that "on hand, … without consent or hindrance by the board" was the phrase the legislature intended to include in the source law. However, the revised law preserves the likely typographical error in source law because the source law is ambiguous and the ambiguity cannot be resolved without potential substantive effect.

Revised Law

Sec. 8288.211. REFUNDING BONDS. (a) The district may issue refunding bonds to refund outstanding district bonds and interest on those bonds. Refunding bonds may be issued without an election.

(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 the surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the 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) The district may also issue refunding bonds under any other applicable law. (Acts 65th Leg., R.S., Ch. 714, Sec. 17.)

Source Law

Sec. 17. 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 17, Chapter 714, 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. 8288.212. OTHER REMEDIES AND COVENANTS. The resolution authorizing the issuance of any district bonds authorized under this chapter, including refunding bonds, or the trust indenture securing the bonds, may provide other remedies and covenants the board considers necessary to issue the bonds on the most favorable terms. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(h).)

Source Law

(h) The resolution authorizing the issuance of any bonds authorized under this Act, including refunding bonds, or the trust indenture securing such bonds, may also provide such other remedies and contain such covenants as the board shall deem necessary to issue its bonds upon the most favorable terms.

Revised Law

Sec. 8288.213. LIMITATION ON RIGHTS OF BONDHOLDERS. The resolution authorizing the bonds or the trust indenture securing the bonds may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income. (Acts 65th Leg., R.S., Ch. 714, Sec. 15(g) (part).)

Source Law

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

Revisor's Note

Section 15(g), Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides for a resolution limiting or qualifying the rights of holders of certain bonds payable from the "sale source." The revised law substitutes "same" for "sale" because it is clear from the context that "sale" is a typographical error and that the legislature intended to use the word "same."

Revised Law

Sec. 8288.214. BONDS EXEMPT FROM TAXATION. A district bond, the transfer of the bond, and the income from the bond, including profits made on the sale of the bond, are exempt from taxation in this state. (Acts 65th Leg., R.S., Ch. 714, Sec. 22 (part).)

Source Law

Sec. 22. … the bonds issued hereunder 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.

Revisor's Note

(End of Subchapter)

(1) Section 15(b), Chapter 714, 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 is superseded by general law. Section 1201.022, Government Code, as amended in 2001, 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 15(b), Chapter 714, 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, such bonds may be made callable prior to maturity at times and prices prescribed in the bonds, and … .

(3) Section 15(b), Chapter 714, 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) … [such bonds] … may be made registrable as to principal or as to both principal and interest.

(4) Section 18, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, requires the district to deliver its bonds to the attorney general for examination and approval. The revised law omits that provision because it duplicates, in substance, Section 1202.003, Government Code. Section 1202.003, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

Sec. 18. 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 … .

(5) Section 18, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that after approval the bonds shall be registered with the comptroller. The revised law omits that provision as superseded by Section 1202.005, Government Code (enacted in 1987 as Section 3.002(c), Chapter 53, Acts of the 70th Legislature, 2nd Called Session). Section 1202.005, Government Code, applies to district bonds by application of Section 1202.001, Government Code. The omitted law reads:

Sec. 18. … [he shall approve the bonds and] … the bonds then shall be registered by the comptroller of public accounts. …

(6) Section 18, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that after approval and registration, district bonds are incontestable and binding obligations. The revised law omits that provision 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, bonds 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. 18. … 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 18, Chapter 714, 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 18 regarding the validity and incontestability of a contract the revenues or 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. 18. … 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 may 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, and … . [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 715, Acts of the 65th Legislature, Regular Session, 1977, lists the entities for which district bonds are legal investments and provides that district bonds may secure deposits of public funds of the state or political subdivisions. The revised law omits the provision relating to the eligibility of district bonds to be considered as investments for various entities because it duplicates Section 49.186(a), Water Code. The revised law omits the provision relating to deposits of state funds by the comptroller as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller. As to deposits of other funds, the provision is impliedly repealed by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions, and permits those deposits to be secured by obligations issued by conservation and reclamation districts. 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 5, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that an election to confirm the creation of the district must be held before the district may issue any bonds or other obligations. The revised law omits that provision as executed because the district has issued bonds, and any confirmation election would have been held. The omitted law reads:

Sec. 5. Before issuing any bonds or other obligations an election shall be held within the boundaries of the proposed district to determine if the proposed district shall be established; such election and notice thereof shall be held and given in the manner provided by Chapter 54 of the Water Code.

(2) Section 21, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides in part that the act is sufficient authority for the issuance of bonds, the execution of contracts and conveyances, and the performance of other authorized acts by the district and all other public agencies, without reference to any other law or any restrictions or limitations contained in another law, except as specifically provided by the act.

The revised law omits the statement that the act is sufficient authority for the performance of acts authorized by the act because it is unnecessary. The operative provisions of the act are fully effective on their own terms.

The revised law omits the statement that other laws or restrictions or limitations contained in those laws do not apply because it is both unnecessary and potentially misleading. An accepted general principle of statutory construction requires a statute to be given cumulative effect with other statutes unless it provides otherwise or unless the statutes are in conflict. To the extent the statement means that the act prevails over other law in existence at the time the act became effective and with which the act conflicts, it merely restates general rules of statutory construction. To the extent the statement means the act prevails over future enactments of the legislature that may conflict with it, it is misleading. Section 311.026, Government Code (Code Construction Act), governs the interpretation of the revised law in instances of apparent conflict with other laws.

Finally, codification of the statement is potentially misleading because the revised law not only omits provisions of the act that are impliedly repealed by other law, it also omits provisions that are duplicative of other law. Codification of the statement might create an impression that the provisions of other law that duplicate the omitted provisions do not apply.

Section 21 also provides that the district and all other public agencies and political subdivisions may use the provisions of other laws that do not conflict with the act to carry out any power granted by the act. The revised law omits that provision as unnecessary. The operative provisions of other applicable laws are fully effective on their own terms. The omitted law reads:

Sec. 21. This Act shall be wholly sufficient authority within itself for the issuance of the bonds, the execution of contracts, and conveyances, and the performance of the other acts and procedures authorized in this Act by the district, and all other public agencies and political subdivisions, without reference to any other law or any restrictions or limitations contained therein, except as specifically provided in this Act. The district, and all other public agencies and political subdivisions, may use the provisions of any other laws, not in conflict with the provisions, to the extent convenient or necessary to carry out any power or authority, express or implied, granted by this Act.

(3) Section 23, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, provides that the act is severable. The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which states that a provision of a statute is severable from each other provision of the statute that can be given effect. The omitted law reads:

Sec. 23. If any word, phrase, clause, paragraph, sentence, part, portion, or provision of this Act or the application thereof to any person or circumstance shall be held to be invalid or unconstitutional the remainder of this Act shall nevertheless be valid, and the legislature hereby declares that this Act would have been enacted without such invalid or unconstitutional word, phrase, clause, paragraph, sentence, part, portion or provision. …

(4) Section 24, Chapter 714, Acts of the 65th Legislature, Regular Session, 1977, contains legislative findings related to the performance of certain requirements under Section 59, Article XVI, Texas Constitution. The revised law omits that provision as executed. The omitted law reads:

Sec. 24. It is determined and found that a proper and written notice of the intention to introduce this Act setting forth the general substance of this Act has been published at least 30 days and not more than 90 days prior to the introduction of this Act in the Legislature of Texas in a newspaper having a general circulation in the county in which the district is located; that a copy of such notice and a copy of this Act have been delivered to the governor of Texas who has submitted such notice and act to the Texas Water Rights Commission, and said Texas Water Rights Commission has filed its recommendations as to this Act with the governor, lieutenant governor, and speaker of the house of representatives within 30 days from the date such notice and Act were received by the Texas Water Rights Commission; and that all the requirements and provisions of Article XVI, Section 59d, of the Texas Constitution, have been fulfilled and accomplished as herein provided, and that any applicable requirements and provisions of Article XVI, Section 59e, of the Texas Constitution, have been fulfilled and accomplished.


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