1 | 1 | | 81R4336 SGA-F |
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2 | 2 | | By: Frost H.B. No. 2620 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the creation, administration, powers, duties, and |
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8 | 8 | | operation of the Riverbend Water Resources District; providing |
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9 | 9 | | authority to issue bonds and exercise the power of eminent domain. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Title 6, Special District Local Laws Code, is |
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12 | 12 | | amended by adding Subtitle L to read as follows: |
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13 | 13 | | SUBTITLE L. MUNICIPAL WATER DISTRICTS |
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14 | 14 | | CHAPTER 9601. RIVERBEND WATER RESOURCES DISTRICT |
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15 | 15 | | SUBCHAPTER A. GENERAL PROVISIONS |
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16 | 16 | | Sec. 9601.001. DEFINITIONS. In this chapter: |
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17 | 17 | | (1) "Board" means the board of directors of the |
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18 | 18 | | district. |
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19 | 19 | | (2) "Bond" has the meaning assigned to the term |
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20 | 20 | | "public security" by Section 1202.001, Government Code. |
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21 | 21 | | (3) "Director" means a person appointed to the board. |
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22 | 22 | | (4) "District" means the Riverbend Water Resources |
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23 | 23 | | District. |
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24 | 24 | | (5) "Member" means a municipality, county, or other |
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25 | 25 | | political subdivision that is a member of the district as provided |
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26 | 26 | | by Section 9601.005. |
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27 | 27 | | Sec. 9601.002. NATURE OF DISTRICT. The district is a |
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28 | 28 | | conservation and reclamation district created under and essential |
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29 | 29 | | to accomplish the purposes of Section 59, Article XVI, Texas |
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30 | 30 | | Constitution. |
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31 | 31 | | Sec. 9601.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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32 | 32 | | The district is created to serve a public use and benefit. |
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33 | 33 | | (b) All land and other property included in the boundaries |
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34 | 34 | | of the district will benefit from the works and projects |
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35 | 35 | | accomplished by the district under the powers conferred by Section |
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36 | 36 | | 59, Article XVI, Texas Constitution. |
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37 | 37 | | (c) The accomplishment of the purposes stated in this |
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38 | 38 | | chapter is for the benefit of the people of this state and the |
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39 | 39 | | improvement of their property and industries and will foster and |
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40 | 40 | | encourage economic development in this state. |
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41 | 41 | | (d) The district, in carrying out the purposes of this |
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42 | 42 | | chapter, will be performing an essential public function under the |
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43 | 43 | | constitution. |
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44 | 44 | | Sec. 9601.004. LIBERAL CONSTRUCTION OF CHAPTER. This |
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45 | 45 | | chapter shall be liberally construed to effect the purposes, |
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46 | 46 | | powers, rights, and functions stated in this chapter. |
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47 | 47 | | Sec. 9601.005. DISTRICT MEMBERS. (a) The district is |
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48 | 48 | | composed of the following members: |
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49 | 49 | | (1) the City of Annona; |
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50 | 50 | | (2) the City of Avery; |
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51 | 51 | | (3) the City of DeKalb; |
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52 | 52 | | (4) the City of Hooks; |
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53 | 53 | | (5) the City of Maud; |
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54 | 54 | | (6) the City of New Boston; |
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55 | 55 | | (7) the City of Texarkana, Texas; |
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56 | 56 | | (8) the City of Wake Village; and |
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57 | 57 | | (9) the Red River Redevelopment Authority. |
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58 | 58 | | (b) After receipt of a petition from the governing body of a |
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59 | 59 | | municipality, county, or other political subdivision that desires |
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60 | 60 | | to join the district, the board may add a member to the district, on |
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61 | 61 | | terms determined by the board to be in the best interests of the |
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62 | 62 | | district. |
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63 | 63 | | (c) A member's withdrawal from the district or the cessation |
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64 | 64 | | of existence of a member does not affect the validity of the |
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65 | 65 | | district or any of the district's powers or duties. |
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66 | 66 | | Sec. 9601.006. DISTRICT TERRITORY. (a) The territory of the |
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67 | 67 | | district is composed of all the territory contained in: |
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68 | 68 | | (1) the cities of Annona, Avery, DeKalb, Hooks, Maud, |
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69 | 69 | | New Boston, Texarkana, Texas, and Wake Village; and |
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70 | 70 | | (2) the Red River Redevelopment Authority, the |
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71 | 71 | | boundaries of which are described by Section 3503.004, including |
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72 | 72 | | territory that may be added under Section 3503.005. |
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73 | 73 | | (b) The territory of the district also includes all of the |
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74 | 74 | | territory: |
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75 | 75 | | (1) of any municipality, county, or other political |
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76 | 76 | | subdivision that joins the district as a member; and |
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77 | 77 | | (2) added to the territory of a member by annexation or |
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78 | 78 | | other means. |
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79 | 79 | | (c) A defect in the description of the boundaries of a |
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80 | 80 | | member or in any past or future proceedings for the annexation of |
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81 | 81 | | territory by a member does not affect the validity, powers, or |
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82 | 82 | | duties of the district. |
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83 | 83 | | Sec. 9601.007. CONFIRMATION ELECTION NOT REQUIRED. (a) |
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84 | 84 | | The board is not required to hold an election to confirm the |
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85 | 85 | | district's creation. |
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86 | 86 | | (b) Sections 49.101-49.105, Water Code, do not apply to the |
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87 | 87 | | district. |
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88 | 88 | | [Sections 9601.008-9601.050 reserved for expansion] |
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89 | 89 | | SUBCHAPTER B. BOARD OF DIRECTORS |
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90 | 90 | | Sec. 9601.051. COMPOSITION OF BOARD; TERMS. (a) The |
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91 | 91 | | district is governed by its board. |
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92 | 92 | | (b) The governing body of each member shall appoint a |
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93 | 93 | | director to represent the member on the board and shall promptly |
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94 | 94 | | fill a vacancy in that board position in accordance with the |
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95 | 95 | | member's policies, resolutions, and procedures. |
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96 | 96 | | (c) Except as provided by Subsection (d), directors serve |
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97 | 97 | | staggered terms of four years. |
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98 | 98 | | (d) A director who is also an elected official of a |
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99 | 99 | | political subdivision serves for a term coinciding with the term of |
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100 | 100 | | the elected office. |
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101 | 101 | | (e) The board shall determine the method of staggering the |
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102 | 102 | | terms of the directors. |
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103 | 103 | | (f) A director may serve consecutive terms. |
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104 | 104 | | Sec. 9601.052. QUALIFICATIONS FOR OFFICE. To be eligible to |
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105 | 105 | | be appointed or to serve as a director, a person must be a resident, |
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106 | 106 | | qualified voter of the district. |
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107 | 107 | | Sec. 9601.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) |
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108 | 108 | | The district shall act through orders or resolutions adopted by the |
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109 | 109 | | board. |
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110 | 110 | | (b) All directors are entitled to vote. |
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111 | 111 | | Sec. 9601.054. OFFICERS AND ASSISTANTS. (a) The board |
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112 | 112 | | shall elect a president, vice president, secretary, and treasurer. |
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113 | 113 | | (b) The board shall elect the president and vice president |
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114 | 114 | | from among the directors. |
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115 | 115 | | (c) The president and vice president serve for a one-year |
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116 | 116 | | term. |
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117 | 117 | | (d) The offices of secretary and treasurer: |
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118 | 118 | | (1) may be held by one person; and |
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119 | 119 | | (2) are not required to be held by a director. |
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120 | 120 | | (e) The board may appoint one or more assistant officers who |
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121 | 121 | | are not required to be directors. |
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122 | 122 | | (f) A person may not concurrently hold the offices of board |
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123 | 123 | | president and secretary. |
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124 | 124 | | Sec. 9601.055. MEETINGS. The board shall have regular |
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125 | 125 | | meetings at times specified by board resolution or bylaws and shall |
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126 | 126 | | have special meetings when called by the board president or by a |
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127 | 127 | | number of directors that is equal to or greater than the number of |
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128 | 128 | | directors that is one less than a majority of the board. |
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129 | 129 | | Sec. 9601.056. TELEPHONE CONFERENCE CALL MEETINGS. (a) The |
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130 | 130 | | board may hold an open or closed meeting by telephone conference |
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131 | 131 | | call only if: |
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132 | 132 | | (1) the meeting is a special called meeting; |
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133 | 133 | | (2) immediate action is required; and |
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134 | 134 | | (3) convening a quorum of the board at one location is |
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135 | 135 | | difficult or impossible. |
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136 | 136 | | (b) A telephone conference call meeting is subject to the |
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137 | 137 | | notice requirements applicable to other meetings of the board. |
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138 | 138 | | (c) Each part of a telephone conference call meeting that is |
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139 | 139 | | required to be open to the public shall be made audible to the |
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140 | 140 | | public at the location specified in the notice of the meeting as the |
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141 | 141 | | location of the meeting. |
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142 | 142 | | (d) The location designated in the notice as the location of |
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143 | 143 | | the meeting shall provide two-way communication during the entire |
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144 | 144 | | telephone conference call meeting, and the identification of each |
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145 | 145 | | party to the telephone conference shall be clearly stated prior to |
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146 | 146 | | speaking. |
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147 | 147 | | (e) Section 551.125, Government Code, does not apply to a |
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148 | 148 | | meeting held under this section. |
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149 | 149 | | Sec. 9601.057. RECALL. A director may be recalled at any |
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150 | 150 | | time by the governing body of the member that appointed the |
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151 | 151 | | director. |
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152 | 152 | | Sec. 9601.058. COMPENSATION; REIMBURSEMENT. A director is |
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153 | 153 | | not entitled to compensation for service on the board but is |
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154 | 154 | | entitled to be reimbursed for necessary expenses incurred in the |
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155 | 155 | | performance of official duties. |
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156 | 156 | | Sec. 9601.059. BOARD POSITION NOT A CIVIL OFFICE OF |
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157 | 157 | | EMOLUMENT. (a) A position on the board may not be construed to be a |
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158 | 158 | | civil office of emolument for any purpose, including a purpose |
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159 | 159 | | described in Section 40, Article XVI, Texas Constitution. |
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160 | 160 | | (b) An elected official of any county, municipality, or |
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161 | 161 | | other political subdivision in the territory of the district may be |
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162 | 162 | | appointed to and serve on the board as a director without penalty or |
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163 | 163 | | forfeiture of office. |
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164 | 164 | | [Sections 9601.060-9601.100 reserved for expansion] |
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165 | 165 | | SUBCHAPTER C. POWERS AND DUTIES |
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166 | 166 | | Sec. 9601.101. GENERAL POWERS. Except as provided by this |
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167 | 167 | | chapter, the district may exercise the powers applicable to a |
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168 | 168 | | district under Chapter 49, Water Code. |
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169 | 169 | | Sec. 9601.102. SPECIFIC POWERS. The district may exercise |
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170 | 170 | | any power necessary or appropriate to achieve the purposes of this |
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171 | 171 | | chapter, including the power to: |
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172 | 172 | | (1) adopt and enforce: |
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173 | 173 | | (A) a trade name or trademark; |
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174 | 174 | | (B) bylaws and rules for the conduct of the |
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175 | 175 | | affairs of the district; |
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176 | 176 | | (C) any rule that a water control and improvement |
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177 | 177 | | district may adopt and enforce in accordance with Sections |
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178 | 178 | | 51.127-51.130, Water Code; and |
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179 | 179 | | (D) specific rates, charges, fees, or rentals, |
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180 | 180 | | and reasonable rules and regulations, for providing any district |
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181 | 181 | | commodity, facility, or service; |
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182 | 182 | | (2) in the manner and to the extent permitted by this |
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183 | 183 | | chapter: |
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184 | 184 | | (A) borrow money for a district purpose; |
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185 | 185 | | (B) enter into an agreement in connection with |
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186 | 186 | | the borrowing; |
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187 | 187 | | (C) issue bonds for money borrowed; |
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188 | 188 | | (D) provide for and secure the payment of the |
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189 | 189 | | bonds; and |
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190 | 190 | | (E) provide for the rights of the holders of the |
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191 | 191 | | bonds; |
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192 | 192 | | (3) acquire any and all storage rights and storage |
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193 | 193 | | capacity in a reservoir or other water source inside or outside the |
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194 | 194 | | boundaries of the district, and acquire the right to take water from |
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195 | 195 | | that reservoir or source, subject to the rights or permits held by |
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196 | 196 | | municipalities or other persons, and in accordance with any |
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197 | 197 | | contract or contracts that the district may make with the United |
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198 | 198 | | States, any state of the United States, or any political |
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199 | 199 | | subdivision of any state of the United States, in reference to those |
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200 | 200 | | rights; |
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201 | 201 | | (4) construct, acquire, own, finance, operate, |
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202 | 202 | | maintain, sell, lease as lessor or lessee, dispose of, or otherwise |
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203 | 203 | | use any work, plant, or other district facility as defined by |
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204 | 204 | | Section 49.001, Water Code, inside or outside the boundaries of the |
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205 | 205 | | district, that the board determines is necessary or useful for the |
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206 | 206 | | exercise of a district power; and |
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207 | 207 | | (5) pledge all or part of district revenue to the |
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208 | 208 | | payment of district obligations under a contract or agreement to |
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209 | 209 | | the same extent and on the same conditions as the district may |
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210 | 210 | | pledge revenue to secure district bonds. |
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211 | 211 | | Sec. 9601.103. GENERAL POWERS REGARDING WATER. The |
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212 | 212 | | district has all rights, powers, and privileges necessary or useful |
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213 | 213 | | to enable it to acquire, provide, supply, deliver, and sell water, |
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214 | 214 | | whether processed or unprocessed, raw or potable, inside or |
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215 | 215 | | outside its boundaries to any person for any beneficial purpose. |
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216 | 216 | | Sec. 9601.104. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL |
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217 | 217 | | SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or a |
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218 | 218 | | county, municipality, or other political subdivision of this state |
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219 | 219 | | or another state may enter into a contract or agreement with the |
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220 | 220 | | district, on terms agreed to by the parties, for: |
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221 | 221 | | (1) the purchase or sale of water; |
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222 | 222 | | (2) waste collection, transportation, processing, or |
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223 | 223 | | disposal; or |
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224 | 224 | | (3) any purpose relating to the district's powers or |
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225 | 225 | | functions. |
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226 | 226 | | (b) A contract or agreement under this section must comply |
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227 | 227 | | with Chapter 791, Government Code. |
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228 | 228 | | (c) A provision of district services or facilities to a |
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229 | 229 | | member or an exercise of district power regarding a member's retail |
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230 | 230 | | services may only be made through a contract between the district |
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231 | 231 | | and the member under this section. |
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232 | 232 | | Sec. 9601.105. CONVEYANCE OF PROPERTY TO DISTRICT. A public |
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233 | 233 | | agency or a county, municipality, or other political subdivision of |
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234 | 234 | | this state may lease, sell, or otherwise convey to the district, for |
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235 | 235 | | any consideration that the parties agree is adequate, any of its |
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236 | 236 | | land, improvements, property, plants, lines, or other facilities |
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237 | 237 | | related to: |
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238 | 238 | | (1) the supply, delivery, or sale of water; |
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239 | 239 | | (2) waste collection, transportation, processing, or |
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240 | 240 | | disposal; or |
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241 | 241 | | (3) garbage collection or disposal. |
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242 | 242 | | Sec. 9601.106. ACQUISITION OF EXISTING FACILITIES. If the |
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243 | 243 | | district acquires existing works, improvements, facilities, |
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244 | 244 | | plants, equipment, or appliances that are completed, partially |
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245 | 245 | | created, or under construction, the district may: |
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246 | 246 | | (1) assume the contracts and obligations of the |
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247 | 247 | | previous owner; and |
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248 | 248 | | (2) perform the obligations of the previous owner in |
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249 | 249 | | the same manner and to the same extent that any other purchaser or |
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250 | 250 | | assignee would be bound. |
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251 | 251 | | [Sections 9601.107-9601.150 reserved for expansion] |
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252 | 252 | | SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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253 | 253 | | Sec. 9601.151. PROHIBITION ON ASSESSMENTS OR TAXES. (a) |
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254 | 254 | | The district may not under this chapter or any other law impose an |
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255 | 255 | | assessment on real property or an ad valorem tax or create a debt |
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256 | 256 | | payable from an assessment on real property or an ad valorem tax. |
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257 | 257 | | (b) Sections 49.106-49.108, Water Code, do not apply to the |
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258 | 258 | | district. |
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259 | 259 | | Sec. 9601.152. DEPOSITORY. District money shall be |
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260 | 260 | | deposited in the depository or depositories designated by the |
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261 | 261 | | board, except that: |
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262 | 262 | | (1) bond proceeds and money pledged to pay bonds, to |
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263 | 263 | | the extent provided in the proceedings authorizing the issuance of |
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264 | 264 | | bonds, or the trust indenture securing the bonds, may be deposited |
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265 | 265 | | with another depository or trustee named in the proceedings or |
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266 | 266 | | trust indenture; and |
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267 | 267 | | (2) money shall be remitted to each paying agent for |
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268 | 268 | | the payment of principal of and interest on the bonds. |
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269 | 269 | | Sec. 9601.153. INVESTMENT OF DISTRICT MONEY. (a) Chapter |
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270 | 270 | | 2256, Government Code, applies to the district and the investment |
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271 | 271 | | of district funds and funds under district control. |
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272 | 272 | | (b) The board may invest bond proceeds in a manner |
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273 | 273 | | determined by the board or in the manner permitted or required in |
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274 | 274 | | the proceedings authorizing the issuance of bonds or in the trust |
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275 | 275 | | indenture securing the bonds. |
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276 | 276 | | Sec. 9601.154. DISTRICT FACILITIES EXEMPT FROM TAXATION AND |
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277 | 277 | | ASSESSMENT. The district is not required to pay a tax or assessment |
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278 | 278 | | on its facilities or any part of its facilities. |
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279 | 279 | | [Sections 9601.155-9601.200 reserved for expansion] |
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280 | 280 | | SUBCHAPTER E. BONDS |
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281 | 281 | | Sec. 9601.201. AUTHORITY TO ISSUE BONDS. (a) The district |
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282 | 282 | | by resolution may authorize the issuance of bonds payable from and |
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283 | 283 | | secured by revenue or any other available source of district money |
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284 | 284 | | to carry out a power conferred by this chapter. Bonds issued by the |
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285 | 285 | | district are not a direct obligation of any member. |
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286 | 286 | | (b) The bonds must be issued in the manner and under the |
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287 | 287 | | terms of the proceedings authorizing the issuance of the bonds. |
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288 | 288 | | (c) Bonds may be issued by the district without an election. |
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289 | 289 | | (d) Sections 49.181-49.186, Water Code, do not apply to the |
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290 | 290 | | district. |
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291 | 291 | | Sec. 9601.202. FORM OF BONDS. District bonds must be: |
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292 | 292 | | (1) issued in the district's name; and |
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293 | 293 | | (2) signed by the officers of the district in |
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294 | 294 | | accordance with the proceedings authorizing the issuance of the |
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295 | 295 | | bonds. |
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296 | 296 | | Sec. 9601.203. MATURITY. District bonds must mature not |
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297 | 297 | | later than 50 years after the date of their issuance. |
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298 | 298 | | Sec. 9601.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. |
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299 | 299 | | (a) Bonds may be secured by a pledge of all or part of the district's |
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300 | 300 | | revenue, or by all or part of the payments or rentals under one or |
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301 | 301 | | more contracts or leases specified by the proceedings authorizing |
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302 | 302 | | the issuance of the bonds. |
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303 | 303 | | (b) The proceedings authorizing the issuance of bonds |
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304 | 304 | | secured by a pledge of revenue of all or part of the district's |
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305 | 305 | | facilities may provide that the district shall first pay the |
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306 | 306 | | expenses of operating and maintaining all or part of the facilities |
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307 | 307 | | as the board considers appropriate before paying the principal of |
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308 | 308 | | and interest on the bonds. |
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309 | 309 | | (c) In the proceedings authorizing the issuance of bonds |
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310 | 310 | | secured by revenue, contract payments, or lease rentals, the |
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311 | 311 | | district may reserve the right, under conditions specified by the |
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312 | 312 | | proceedings, to issue additional bonds that will be on a parity |
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313 | 313 | | with, superior to, or subordinate to the bonds then being issued. |
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314 | 314 | | Sec. 9601.205. ADDITIONAL SECURITY. (a) At the discretion |
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315 | 315 | | of the board, bonds may be additionally secured by a deed of trust |
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316 | 316 | | or mortgage lien on all or part of the district's physical |
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317 | 317 | | property, facilities, easements, water rights and appropriation |
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318 | 318 | | permits, leases, contracts, and all rights appurtenant to the |
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319 | 319 | | property, vesting in the trustee power to: |
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320 | 320 | | (1) sell the property for the payment of the bonds; |
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321 | 321 | | (2) operate the property; and |
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322 | 322 | | (3) take other action to further secure the bonds. |
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323 | 323 | | (b) A purchaser under a sale under the deed of trust lien, if |
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324 | 324 | | one is given, is: |
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325 | 325 | | (1) the absolute owner of the property, facilities, |
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326 | 326 | | and rights purchased; and |
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327 | 327 | | (2) entitled to maintain and operate the property, |
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328 | 328 | | facilities, and rights. |
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329 | 329 | | Sec. 9601.206. DELEGATION OF AUTHORITY. (a) In connection |
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330 | 330 | | with the issuance of bonds, the board may: |
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331 | 331 | | (1) prescribe the maximum principal amount of bonds to |
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332 | 332 | | be issued and the maximum rate of interest the bonds may bear; |
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333 | 333 | | (2) recite the public purpose for which the bonds are |
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334 | 334 | | to be issued; |
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335 | 335 | | (3) delegate to any officer or employee of the |
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336 | 336 | | district the authority to effect the sale of the bonds; and |
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337 | 337 | | (4) determine the period during which the delegation |
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338 | 338 | | authority under Subdivision (3) may be exercised. |
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339 | 339 | | (b) In exercising the authority delegated by the board to an |
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340 | 340 | | officer or employee, the officer or employee may establish the |
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341 | 341 | | terms and details related to the issuance and sale of the bonds, |
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342 | 342 | | including: |
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343 | 343 | | (1) the form and designation of the bonds; |
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344 | 344 | | (2) the principal amount of the bonds and the amount of |
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345 | 345 | | the bonds to mature in each year; |
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346 | 346 | | (3) the dates, price, interest rates, interest payment |
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347 | 347 | | dates, principal payment dates, and redemption features of the |
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348 | 348 | | bonds; |
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349 | 349 | | (4) the execution of agreements determined by the |
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350 | 350 | | officer or employee to be necessary in connection with the issuance |
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351 | 351 | | of the bonds; and |
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352 | 352 | | (5) any other details relating to the issuance and |
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353 | 353 | | sale of the bonds as specified by the board in the proceedings |
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354 | 354 | | authorizing the issuance of the bonds. |
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355 | 355 | | (c) A finding or determination made by an officer or |
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356 | 356 | | employee acting under the authority delegated to the officer or |
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357 | 357 | | employee has the same force and effect as a finding or determination |
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358 | 358 | | made by the board. |
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359 | 359 | | Sec. 9601.207. TRUST INDENTURE. District bonds authorized |
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360 | 360 | | by this chapter, including refunding bonds, may be additionally |
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361 | 361 | | secured by a trust indenture. The trustee may be a bank with trust |
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362 | 362 | | powers that is located inside or outside the state. |
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363 | 363 | | Sec. 9601.208. CREDIT AGREEMENT. In connection with the |
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364 | 364 | | issuance of bonds under this chapter, the board may exercise the |
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365 | 365 | | authority granted to the governing body of an issuer with regard to |
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366 | 366 | | the execution and delivery of a credit agreement under Chapter |
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367 | 367 | | 1371, Government Code. |
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368 | 368 | | Sec. 9601.209. CHARGES FOR DISTRICT SERVICES. If bonds |
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369 | 369 | | payable wholly from revenue are issued, the board shall set and |
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370 | 370 | | revise the rates, fees, and charges assessed for water sold, waste |
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371 | 371 | | collection and treatment services provided, and garbage collection |
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372 | 372 | | services provided by the district. The rates, fees, and charges |
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373 | 373 | | must be sufficient to: |
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374 | 374 | | (1) pay the expense of operating and maintaining the |
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375 | 375 | | district facilities that generate the revenue from which the bonds |
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376 | 376 | | may or will be paid; |
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377 | 377 | | (2) pay the principal of and interest on the bonds when |
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378 | 378 | | due; and |
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379 | 379 | | (3) maintain the reserve fund and other funds as |
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380 | 380 | | provided in the proceedings authorizing the issuance of bonds or |
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381 | 381 | | the trust indenture securing the bonds. |
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382 | 382 | | Sec. 9601.210. STATE PLEDGE REGARDING RIGHTS AND REMEDIES |
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383 | 383 | | OF BONDHOLDERS. Without depriving this state of its power to |
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384 | 384 | | regulate and control the rates, fees, and charges assessed for |
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385 | 385 | | water sold and waste collection and treatment services provided by |
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386 | 386 | | the district, the state pledges to and agrees with the holders of |
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387 | 387 | | district bonds that the state will not exercise its power to |
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388 | 388 | | regulate and control the rates, fees, and charges in any way that |
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389 | 389 | | would impair the rights or remedies of the holders of the bonds. |
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390 | 390 | | Sec. 9601.211. USE OF BOND PROCEEDS. In addition to the |
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391 | 391 | | permitted use of bond proceeds provided by general law, the |
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392 | 392 | | district may use proceeds from the sale of bonds: |
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393 | 393 | | (1) for the payment of interest on the bonds while the |
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394 | 394 | | project or facility is being acquired or constructed and for the |
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395 | 395 | | year after it is acquired or constructed; |
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396 | 396 | | (2) for the operation and maintenance of the project |
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397 | 397 | | or facility during the estimated period of acquisition or |
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398 | 398 | | construction of the project or facility and for one year after it is |
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399 | 399 | | acquired or constructed; |
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400 | 400 | | (3) for a debt service reserve fund; |
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401 | 401 | | (4) for other funds as may be provided in the |
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402 | 402 | | proceedings authorizing the issuance of bonds or in the trust |
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403 | 403 | | indenture securing the bonds; |
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404 | 404 | | (5) to pay any expense necessarily incurred in |
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405 | 405 | | accomplishing the purpose of the district, including any expense of |
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406 | 406 | | issuing and selling the bonds; and |
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407 | 407 | | (6) to pay any costs incurred under the terms of a |
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408 | 408 | | credit agreement. |
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409 | 409 | | Sec. 9601.212. ADDITIONAL AUTHORITY TO PROVIDE DEBT SERVICE |
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410 | 410 | | RESERVE. (a) The board may provide that in lieu of or in addition to |
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411 | 411 | | providing for the funding of a debt service reserve fund with cash, |
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412 | 412 | | a line or letter of credit or an insurance policy may be used for the |
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413 | 413 | | debt service reserve fund. |
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414 | 414 | | (b) Any agreement under which a line or letter of credit or |
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415 | 415 | | insurance policy is provided must be submitted to the attorney |
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416 | 416 | | general for examination and approval. After approval, the |
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417 | 417 | | agreement is incontestable in any court or other forum for any |
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418 | 418 | | reason and is a valid and binding obligation of the district in |
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419 | 419 | | accordance with its terms for all purposes. |
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420 | 420 | | Sec. 9601.213. REFUNDING BONDS. (a) The district may issue |
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421 | 421 | | refunding bonds to refund all or part of its outstanding bonds |
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422 | 422 | | issued under this chapter, including matured but unpaid interest |
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423 | 423 | | and obligations incurred under a credit agreement. |
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424 | 424 | | (b) Refunding bonds may be issued in the manner provided by |
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425 | 425 | | Chapter 1207, Government Code. |
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426 | 426 | | Sec. 9601.214. REMEDIES AND COVENANTS. The proceedings |
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427 | 427 | | authorizing the issuance of any bonds authorized under this |
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428 | 428 | | chapter, including refunding bonds, the execution of a trust |
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429 | 429 | | indenture securing the bonds, and the execution of a credit |
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430 | 430 | | agreement, may provide other remedies and covenants the board |
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431 | 431 | | considers necessary to issue the bonds on terms the board |
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432 | 432 | | determines to be most favorable to the district. |
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433 | 433 | | Sec. 9601.215. LIMITATION ON RIGHTS OF BONDHOLDERS. The |
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434 | 434 | | proceedings authorizing the issuance of bonds or the trust |
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435 | 435 | | indenture securing the bonds may limit or qualify the rights of the |
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436 | 436 | | holders of less than all of the outstanding bonds payable from the |
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437 | 437 | | same source to institute or prosecute litigation affecting the |
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438 | 438 | | district's property or income. |
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439 | 439 | | Sec. 9601.216. BONDS EXEMPT FROM TAXATION. Payments made |
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440 | 440 | | by the district in connection with the issuance of bonds, the |
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441 | 441 | | transfer of any bond, and the income from any bond, including |
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442 | 442 | | profits made on the sale of any bond, are exempt from taxation in |
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443 | 443 | | this state. |
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444 | 444 | | Sec. 9601.217. APPOINTMENT OF RECEIVER. (a) On default or |
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445 | 445 | | threatened default in the payment of the principal of or interest on |
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446 | 446 | | obligations incurred by the district in connection with the |
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447 | 447 | | issuance of bonds that are payable wholly or partly from revenue, a |
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448 | 448 | | court may, on petition of the holders of at least 25 percent of the |
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449 | 449 | | district's outstanding revenue bonds, or the party to a credit |
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450 | 450 | | agreement, appoint a receiver for the district. |
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451 | 451 | | (b) The receiver may collect and receive all district |
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452 | 452 | | revenue, employ and discharge district agents and employees, take |
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453 | 453 | | charge of money on hand, and manage the district's proprietary |
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454 | 454 | | affairs without the consent of or hindrance by the board. |
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455 | 455 | | (c) The receiver may be authorized to sell or contract for |
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456 | 456 | | the sale of water, the collection or treatment of waste, or the |
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457 | 457 | | provision of garbage collection or disposal services, or to renew |
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458 | 458 | | contracts with the approval of the court that appointed the |
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459 | 459 | | receiver. |
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460 | 460 | | (d) The court may vest the receiver with any other power or |
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461 | 461 | | duty the court finds necessary to protect the holders of the bonds |
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462 | 462 | | or the party to a credit agreement. |
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463 | 463 | | SECTION 2. (a) The legal notice of the intention to |
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464 | 464 | | introduce this Act, setting forth the general substance of this |
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465 | 465 | | Act, has been published as provided by law, and the notice and a |
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466 | 466 | | copy of this Act have been furnished to all persons, agencies, |
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467 | 467 | | officials, or entities to which they are required to be furnished |
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468 | 468 | | under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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469 | 469 | | Government Code. |
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470 | 470 | | (b) The governor has submitted the notice and Act to the |
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471 | 471 | | Texas Commission on Environmental Quality. |
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472 | 472 | | (c) The Texas Commission on Environmental Quality has filed |
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473 | 473 | | its recommendations relating to this Act with the governor, |
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474 | 474 | | lieutenant governor, and speaker of the house of representatives |
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475 | 475 | | within the required time. |
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476 | 476 | | (d) All requirements of the constitution and laws of this |
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477 | 477 | | state and the rules and procedures of the legislature with respect |
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478 | 478 | | to the notice, introduction, and passage of this Act are fulfilled |
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479 | 479 | | and accomplished. |
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480 | 480 | | SECTION 3. This Act takes effect immediately if it receives |
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481 | 481 | | a vote of two-thirds of all the members elected to each house, as |
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482 | 482 | | provided by Section 39, Article III, Texas Constitution. If this |
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483 | 483 | | Act does not receive the vote necessary for immediate effect, this |
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484 | 484 | | Act takes effect September 1, 2009. |
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