Texas 2011 - 82nd Regular

Texas House Bill HB1832 Compare Versions

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1	1	By: Ritter (Senate Sponsor - Williams) H.B. No. 1832
2	2	(In the Senate - Received from the House April 18, 2011;
3	3	April 26, 2011, read first time and referred to Committee on
4	4	Natural Resources; May 4, 2011, reported favorably by the
5	5	following vote: Yeas 10, Nays 0; May 4, 2011, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the law governing the Lower Neches Valley Authority;
11	11	providing authority to issue bonds.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 63, Acts of the 43rd Legislature, 1st
14	14	Called Session, 1933, is amended by amending Sections 1, 4, 5, 6, 7,
15	15	8, 9, 10, 11, 12, 13, 13A, 14, 16, 17, 18, 19, 21, 24, 27, 27-a, 28,
16	16	29, 29-a, and 29-d and adding Sections 13A-1 through 13A-6 to read
17	17	as follows:
18	18	Sec. 1. That there shall be and is hereby created a
19	19	conservation and reclamation district by the name of "Lower Neches
20	20	Valley Authority," which district is created as a governmental
21	21	agency, body politic and corporate, vested with all the authority
22	22	as such under the Constitution and Laws of the State; and which
23	23	shall have and be recognized to exercise all of the powers of such
24	24	governmental agency and body politic and corporate as are expressly
25	25	authorized in the provisions of the Constitution, Section 59 of
26	26	Article 16, for districts created to conserve, store, control,
27	27	preserve, utilize and distribute the storm and flood waters and the
28	28	waters of the rivers and streams of the State, and such powers as
29	29	may be [contemplated and] implied by the purposes of this provision
30	30	of the Constitution, and as may be conferred by General Law, as well
31	31	as by the provisions of this Act, except nothing herein contained
32	32	shall authorize said district to levy any taxes or special
33	33	assessments, or to create any debt payable out of taxation; and said
34	34	district shall have and be recognized to exercise all the rights and
35	35	powers of an independent governmental agency, body politic and
36	36	corporate, to construct, maintain and operate, in the Neches River
37	37	basin and the adjoining Neches-Trinity coastal basin [valleys of
38	38	the Neches River and its tributaries], within or without the
39	39	boundaries of such district, any and all works deemed essential to
40	40	the operation of the district and for its administration in the
41	41	control, storing, preservation and distribution to all useful
42	42	purposes of the waters of the Neches River basin and the adjoining
43	43	Neches-Trinity coastal basin [and its tributary streams],
44	44	including the storm and flood waters thereof; and such district
45	45	shall have and be recognized to exercise such authority and power of
46	46	control and regulation over such waters [of the Neches River and its
47	47	tributaries] as may be exercised by the State of Texas, subject to
48	48	the provisions of the Constitution and the Acts of the Legislature.
49	49	Sec. 4. [The directors of the district shall organize by
50	50	electing one of their members president, one vice-president, one
51	51	treasurer, and one secretary.] Five [(5)] directors shall
52	52	constitute a quorum at any meeting and a concurrence of a majority
53	53	of the directors [those] present shall be sufficient in all matters
54	54	pertaining to the business of the district[, except the letting of
55	55	construction contracts and the authorization of issuance of
56	56	warrants paying therefor, which shall require the concurrence of
57	57	seven (7) directors. Warrants for the payment of money may be drawn
58	58	and signed by two (2) officers or employees designated by standing
59	59	order entered on the minutes of the directors when such accounts
60	60	have been contracted and ordered paid by the Board of Directors].
61	61	[Sec. 5. The directors of the district shall require all
62	62	officers and employees who shall be charged with the collection or
63	63	paying or handling of any funds of the district under their orders,
64	64	to furnish good and sufficient bonds, with a duly authorized surety
65	65	company as surety thereon, payable to the district, conditioned
66	66	upon the faithful performance of their duties and accounting for
67	67	all funds and property of the district coming into their hands,
68	68	which bonds shall be in sufficient sums to safeguard the district.
69	69	[Sec. 6. The president shall preside at all meetings of the
70	70	Board and shall be the chief executive officer of the district. The
71	71	vice-president shall act as president in case of the absence or
72	72	disability of the president. The secretary shall act as secretary
73	73	of the Board of Directors and shall be charged with the duty of
74	74	seeing that all records and books of the district are properly kept.
75	75	In case of the absence or inability of the secretary to act, a
76	76	secretary pro tem shall be selected by the directors. The directors
77	77	shall hold regular meetings at the office of the district on the
78	78	first Monday in February, May, August and November of each year at
79	79	10 o'clock A. M., and may hold other meetings at such other times as
80	80	the business of the district may require.]
81	81	Sec. 7. (a) A director is entitled to receive a fee of office
82	82	for each day of service approved by a vote of the Board of Directors
83	83	and necessary to discharge the director's duties.
84	84	(b) The Board of Directors shall set the fee described by
85	85	Subsection (a) in an amount not greater than the amount allowed
86	86	under general law. [The directors shall receive as fees of office
87	87	the sum of not to exceed Ten ($10.00) Dollars per day for each day of
88	88	service necessary to discharge of their duties, provided such
89	89	service is authorized by vote of the Board of Directors. They shall
90	90	file with the secretary a verified statement showing the actual
91	91	number of days of service each month on the last day of the month, or
92	92	as soon thereafter as possible and before a warrant shall be issued
93	93	therefor.
94	94	[Sec. 8. The directors shall keep a true and full account of
95	95	all their meetings and proceedings and maintain their records in a
96	96	secure manner. The same shall be the property of the district and
97	97	subject to public inspection. A regular office shall be established
98	98	and maintained for conduct of the district business within the
99	99	district.
100	100	[Sec. 9. A complete book of accounts shall be kept. The
101	101	account books and records of the district and of the depository of
102	102	the district shall be audited by a Certified Public Accountant
103	103	annually as soon as practicable after the expiration of each year,
104	104	such audit to cover the preceding calendar year, and report thereon
105	105	shall be submitted to the first regular meeting of the Board of
106	106	Directors thereafter. Said report shall be in quadruplicate, one
107	107	copy being filed in the office of the district, one with the
108	108	depository of the district, one in the office of the auditor and one
109	109	with the State Board of Water Engineers, all of which shall be open
110	110	to public inspection.
111	111	[Sec. 10. The directors may employ a general manager for the
112	112	district and may give him full authority in the management and
113	113	operation of the district affairs (subject only to the orders of the
114	114	Board of Directors). The term of office and compensation to be paid
115	115	such managers and all employees shall be fixed by the Board of
116	116	Directors and all employees may be removed by the Board.
117	117	[Sec. 11. All bonds required to be given by directors,
118	118	officers and employees of the district shall be executed by a surety
119	119	company authorized to do business in the State, as surety thereon;
120	120	and the district shall be authorized to pay the premiums on such
121	121	bonds.
122	122	[Sec. 12. No director of any such district, engineer or
123	123	employees thereof shall be, directly or indirectly, interested
124	124	either for themselves or as agents for any one else in any contract
125	125	for the purchase or construction of any work by said district, and
126	126	if any such person shall, directly or indirectly, become interested
127	127	in any such contract, he shall be guilty of a misdemeanor, and on
128	128	conviction thereof shall be punished by a fine in any sum not to
129	129	exceed One Thousand ($1,000.00) Dollars, or by confinement in the
130	130	county jail not less than six months nor more than one year, or by
131	131	both fine and imprisonment.]
132	132	Sec. 13A-1 [13]. In [The said district shall have and be
133	133	recognized to exercise, in] addition to all the hereinbefore
134	134	mentioned powers, and for the conservation and beneficial use
135	135	[utilization] of the [said] waters of the Neches River basin and the
136	136	adjoining Neches-Trinity coastal basin, including storm water and
137	137	floodwater, the district may[, the power of] control and use such
138	138	waters [employment of such waters of the Neches River and its
139	139	tributaries, including the storm and floodwaters thereof,] in the
140	140	manner and for the particular purposes described below [hereinafter
141	141	set forth]:
142	142	(a) to [To] provide through practical and legal means for
143	143	the control and coordination of the regulation of such [the]
144	144	waters; [of the Neches River and its tributary streams.]
145	145	(b) to [To] provide by adequate organization and
146	146	administration for the preservation of the equitable rights of the
147	147	people of the different sections of the watershed area in the
148	148	beneficial use of such [the] waters; [of the Neches River and its
149	149	tributary streams.]
150	150	(c) for [For] storing, controlling and conserving such
151	151	[the] waters inside or outside the [of the Neches River and its
152	152	tributaries within and/or without such] district, and the
153	153	prevention of the escape of any of such waters without the maximum
154	154	of public service; for the prevention of devastation of lands from
155	155	recurrent overflows, and the protection of life and property in the
156	156	[such] district from uncontrolled flood waters;[.]
157	157	(d) for [For] the conservation of such [the] waters [of the
158	158	Neches River and its tributaries] essential for the domestic and
159	159	municipal uses of the people of the district;[, including all
160	160	necessary water supplies for cities and towns.]
161	161	(e) for [For] the irrigation of all lands in the [said]
162	162	district or outside the [and/or lands without said] district but
163	163	within the Neches River basin and the adjoining Neches-Trinity
164	164	coastal basin [said watershed area, where irrigation is required
165	165	for agricultural purposes, or may be deemed helpful to more
166	166	profitable agricultural production]; and for the equitable
167	167	distribution of such [said] waters to the regional potential
168	168	requirements for all uses[, domestic, manufacturing, and
169	169	irrigation]. All plans and all works provided by the [said]
170	170	district, and as well, all works which may be provided under
171	171	authority of the [said] district, shall have primary regard to the
172	172	necessary and potential needs for water, by or within the area in
173	173	the [such] district constituting the Neches River basin and the
174	174	adjoining Neches-Trinity coastal basin; [water shed of the Neches
175	175	River and its tributary streams.]
176	176	(f) to provide for [For] the [better encouragement and
177	177	development of drainage systems and provisions for] drainage of
178	178	lands in the Neches River basin and the adjoining Neches-Trinity
179	179	coastal basin; [valleys of the Neches River and its tributary
180	180	streams needing drainage for profitable agricultural production;
181	181	and drainage for other lands in the watershed area of the district
182	182	requiring drainage for the most advantageous use.]
183	183	(g) to encourage [For the purpose of encouraging] the
184	184	conservation of soil and to prevent [all soils against] destructive
185	185	erosion; [and thereby preventing the increased flood menace
186	186	incident thereto.]
187	187	(h) to [To] control such waters and make such waters
188	188	available for use [employment said waters] in the development of
189	189	commercial and industrial enterprises in the Neches River basin and
190	190	the adjoining Neches-Trinity coastal basin or [all sections of the
191	191	watershed area of] the district;[.]
192	192	(i) to [For the] control, store, [storing] and use such
193	193	[employment of said] waters in the development and distribution of
194	194	hydroelectric power, if that [where such] use is [may be]
195	195	economically coordinated with and subordinate to other [and
196	196	superior uses, and subordinated to the] uses declared by law to be
197	197	superior; and[.]
198	198	(j) [And] for each and every purpose for which flood and
199	199	storm waters when controlled and conserved may be utilized in the
200	200	performance of a useful service as [contemplated and] authorized
201	201	by the provisions of the Constitution and the public policy therein
202	202	declared.
203	203	(k) Nothing in this section is a limitation on the powers of
204	204	the district expressed elsewhere in this Act or under other law.
205	205	Sec. 13A-2. The district may [To] purchase or [and/or]
206	206	construct all works necessary or convenient for the exercise of the
207	207	powers and to accomplish the purposes specified in this Act, and may
208	208	[to] purchase or otherwise acquire all lands or [and/or] other
209	209	property necessary or convenient for carrying out any such
210	210	purposes.
211	211	Sec. 13A-3. [(l)] The right of eminent domain is expressly
212	212	conferred upon such district to enable it to acquire the fee simple
213	213	title to, and/or easement or right-of-way over and through, any and
214	214	all lands, water or lands under water, private or public, within and
215	215	without such district, necessary or convenient to carry out any of
216	216	the purposes and powers conferred upon such district by this Act.
217	217	All such condemnation proceedings shall be under the direction of
218	218	the direction of the directors and in the name of the district, and
219	219	the assessment of damages and all procedure with reference to
220	220	condemnation, appeal and payment shall be in conformity with the
221	221	statutes of this State as provided in the title of the Revised
222	222	Statutes relating to "Eminent Domain."
223	223	Sec. 13A-4. (a) [(m)] The Board of Directors of the [said]
224	224	district shall prescribe fees and charges to be collected for the
225	225	use of water, water connections or other services [service], which
226	226	fees and charges shall be reasonable and equitable and fully
227	227	sufficient to produce revenues adequate to pay, and the [said]
228	228	Board of Directors shall cause to be paid therefrom:
229	229	(1) all [All] expenses necessary to the operation and
230	230	maintenance of the improvements and facilities of the [said]
231	231	district. Such operating and maintenance expenses shall include the
232	232	cost of the acquisition of properties and materials necessary to
233	233	maintain the [said] improvements and facilities in good condition
234	234	and to operate them efficiently, necessary wages and salaries of
235	235	the district, and such other expenses as may be reasonably
236	236	necessary to the efficient operation of the [said] improvements and
237	237	facilities;[.]
238	238	(2) the [The annual or semi-annual] interest upon any
239	239	obligations issued hereunder payable out of the revenues of said
240	240	improvements and facilities; and[.]
241	241	(3) the [The] amount required to be paid [annually
242	242	into the sinking fund] for the payment of any obligations issued
243	243	hereunder payable out of the revenues of said improvements and
244	244	facilities.
245	245	(b) Out [No other charge shall be made upon the revenues
246	246	derived from said improvements and facilities so long as any
247	247	obligations issued hereunder shall remain outstanding and unpaid as
248	248	to principal or interest; provided, however, that out] of revenues
249	249	which may be received in excess of those required for the purposes
250	250	listed in the above Subsections (a)(1) [sub-paragraphs (1)], (2)
251	251	and (3), the Board of Directors may pay the cost of improvements and
252	252	replacements not covered by Subsection (a)(1) [said sub-paragraph
253	253	(1)], and may establish a reasonable depreciation and emergency
254	254	fund.
255	255	(c) It is the intent of this Act that the fees and charges of
256	256	the [such] district shall not be in excess of what may be reasonably
257	257	necessary to fulfill the obligations imposed upon the [said]
258	258	district by this Act.
259	259	Sec. 13A-5. The [(n) Such district through its Board of
260	260	Directors, shall have the right to employ managers, engineers,
261	261	attorneys, and all necessary employees to properly construct,
262	262	operate and maintain said works and carry out the provisions of this
263	263	Act and to pay reasonable compensation fixed by the Board of
264	264	Directors for such services.
265	265	[(o) Such] district, in addition to the powers hereinabove
266	266	set out, shall have general power and authority to make and to enter
267	267	into all contracts, leases, and agreements necessary or convenient
268	268	to carry out any of the powers granted in this Act, which contracts,
269	269	leases, and agreements may be entered into with any person, real or
270	270	artificial, any corporation, municipal, public or private, or
271	271	[and/or] any government or governmental agency, including the
272	272	United States Government and the State of Texas, and may convey or
273	273	cause to be conveyed any of its properties, rights, lands,
274	274	tenements, easements, improvements, reservoirs, dams, canals,
275	275	plants, laterals, works and facilities to the United States
276	276	Government or any agency thereof, and may enter into a lease with
277	277	the United States Government, or any agency thereof, relative
278	278	thereto, and obligate itself to pay rental therefor out of the
279	279	income and revenues thereof, with or without the privilege of
280	280	purchase; provided, however, that nothing herein contained shall
281	281	authorize the assumption by the [such] district of any obligation
282	282	requiring payment out of taxes. Any and all such contracts, leases,
283	283	and agreements herein authorized shall be approved by resolution of
284	284	the Board of Directors of the [such] district, and shall be executed
285	285	by the president and attested by the secretary thereof.
286	286	Sec. 13A-6. The district may acquire land for recreational
287	287	facilities and may construct, operate, and maintain recreational
288	288	facilities as provided by general law, provided [(p) Such district
289	289	shall have the right to sue and be sued.
290	290	[(q) Before such district shall establish a diversion
291	291	point, construct the canals, pumping plants and other works herein
292	292	provided for, it shall present to the Board of Water Engineers of
293	293	the State of Texas, or such other agency performing the functions
294	294	now performed by the Board of Engineers, plans and specifications
295	295	of the same and obtain the approval of such Board.
296	296	[Sec. 13A. From and after the effective date of this Act,
297	297	Lower Neches Valley Authority shall have the right and power to
298	298	acquire and own lands within said district by purchase for the
299	299	purpose of operating and maintaining same as public parks for
300	300	public recreation, and said district shall have the power to
301	301	construct improvements and facilities and to operate same on such
302	302	lands to accomplish such purpose. Provided,] that no funds derived
303	303	from taxation shall be expended in purchasing that land [said
304	304	lands] or constructing and maintaining those [said improvements
305	305	and] facilities.
306	306	Sec. 14. The powers and duties herein devolved upon the
307	307	[said] district, and the adequacy of any plan for flood control or
308	308	conservation improvement purposes devised by the district, shall be
309	309	subject to such [the] continuing rights of state supervision and
310	310	state approvals as are required under [by the State which shall be
311	311	exercised through the State Board of Water Engineers, and in
312	312	appropriate instances, by the State Reclamation Engineer, each of
313	313	which agencies shall be charged with the authority and duty to
314	314	approve, or to refuse to approve, the adequacy of any plan or plans
315	315	for flood control or conservation improvement purposes devised by
316	316	the district for the achievement of the plans and purposes intended
317	317	in the creation of the district, and which plans contemplate
318	318	improvements supervised by the respective state authorities under
319	319	the Provisions of the] General Law.
320	320	Sec. 16. The [Said] district may borrow money for any
321	321	corporate purpose from [the Federal Emergency Administration of
322	322	Public Works of the United States, or from any other department or
323	323	agency of the United States, or from] any [other] source, and in
324	324	evidence thereof may issue the notes, warrants, bonds, certificates
325	325	of indebtedness, or other forms of obligations of the [such]
326	326	district, payable solely out of the revenues to be derived from
327	327	district [said] improvements and facilities and the operations and
328	328	services thereof.
329	329	[Sec. 17. Each issue of obligations authorized hereunder
330	330	shall constitute a separate series and shall be appropriately
331	331	designated. Such obligations shall not constitute an indebtedness
332	332	or pledge of the credit of such district, shall never be paid in
333	333	whole or in part out of any funds raised or to be raised by taxation,
334	334	and shall contain a recital to that effect. All obligations issued
335	335	hereunder shall be in registered or coupon form and if in coupon
336	336	form may be registerable as to principal only, or as to both
337	337	principal and interest, shall bear interest at a rate not to exceed
338	338	six per cent per annum, payable annually or semi-annually, and
339	339	shall be in such denominations and shall mature serially or at one
340	340	time not more than fifty years from their date in such manner as may
341	341	be provided by the Board of Directors. Principal of and interest on
342	342	such obligations shall be made payable at any place or places within
343	343	or without the State of Texas and in the discretion of the Board of
344	344	Directors such obligations may be made redeemable at the option of
345	345	said Board prior to maturity at such premium or premiums as the
346	346	Board shall determine. Such obligations shall be signed by the
347	347	president and secretary of the Board of Directors, and the interest
348	348	coupons attached thereto may be executed with the facsimile
349	349	signatures of such officers. Such obligations shall be sold in such
350	350	manner and at such time as the Board of Directors shall determine to
351	351	be expedient and necessary to the interests of the district,
352	352	provided, that in no event shall such obligations be sold for a
353	353	price which will result in an interest yield therefrom of more than
354	354	six per cent computed to maturity according to standard bond tables
355	355	in general use by banks and insurance companies. In the event any of
356	356	the officers whose signatures are on such obligations or coupons
357	357	shall cease to be such officers before the delivery of such
358	358	obligations to the purchaser, such signature or signatures,
359	359	nevertheless, shall be valid and sufficient for all purposes. All
360	360	obligations issued hereunder shall constitute negotiable
361	361	instruments within the meaning of the Negotiable Instruments Law.
362	362	[Sec. 18. Any obligations issued hereunder may be issued
363	363	payable from and secured by the pledge of all the revenues derived
364	364	from the operation of the improvements and facilities of the
365	365	district, exclusive of any revenues derived from taxation or
366	366	assessments, or may be payable from and secured by the pledge of
367	367	only such revenues as may be derived from the operation of the
368	368	improvements and facilities acquired with the proceeds of the sale
369	369	of such obligations, or may be payable from and secured by the
370	370	pledge of a specified part of the revenues derived from the
371	371	operation of the improvements and facilities of the district, all
372	372	as may be provided in the proceedings authorizing the issuance of
373	373	such obligations. If more than one series of obligations shall be
374	374	issued under the provisions of this Act payable from and secured by
375	375	identical revenues, priority of lien against such revenues shall
376	376	depend on the time of delivery of such obligations, each series
377	377	enjoying a lien against such revenues prior and superior to that
378	378	enjoyed by any other series of obligations subsequently delivered,
379	379	provided, however, that as to any issue or series of obligations
380	380	which may be authorized as a unit but delivered from time to time in
381	381	blocks, the Board of Directors may in proceedings authoring the
382	382	issuance of such obligations provide that all of the obligations of
383	383	such series or issue shall be co-equal as to lien regardless of the
384	384	time of delivery.
385	385	[Sec. 19. Any resolution or order authorizing the issuance
386	386	of obligations under the provisions hereof shall provide for the
387	387	creation of a sinking fund into which shall be paid from the
388	388	revenues pledged to the payment of such obligations from month to
389	389	month as said revenues are collected, sums fully sufficient to pay
390	390	principal of and interest on such obligations. The money in such
391	391	sinking fund shall be applied solely to the payment of interest on
392	392	the obligations for the payment of which such fund is created and
393	393	for the retirement of said obligations at or prior to maturity in
394	394	the manner herein provided. The Board of Directors may at the time
395	395	obligations are authorized hereunder provide that all money in such
396	396	sinking fund in excess of the amount required for the payment of
397	397	interest on and principal of such outstanding obligations for such
398	398	period as it may determine shall be expended once each year pursuant
399	399	to its order in the purchase of obligations for the account of which
400	400	such sinking fund has been accumulated, if any such obligations can
401	401	be purchased at a price which shall seem reasonable to the Board,
402	402	and may provide that in the event such obligations contain an option
403	403	permitting retirement prior to maturity then such excess sums shall
404	404	be paid out as aforesaid for the purchase of such obligations, but
405	405	that if the Board shall be unable to so purchase sufficient
406	406	obligations of said issue to absorb all such surplus it shall call
407	407	for redemption a sufficient amount of such obligations to absorb so
408	408	far as practicable the entire surplus remaining in said sinking
409	409	fund. It may be provided that any excess in the sinking fund which
410	410	cannot be applied to the purchase or redemption of obligations
411	411	shall remain in said sinking fund to be used for payment of
412	412	principal or interest when due, or for the subsequent call of
413	413	obligations for purchase or redemption in the manner above
414	414	provided.
415	415	[Sec. 21. Any resolution or order authorizing the issuance
416	416	of obligations hereunder shall provide that the revenues from which
417	417	such obligations are to be paid and which are pledged to the payment
418	418	of such obligations shall from month to month as the same shall
419	419	accrue and be received, be set apart and placed in the sinking fund
420	420	and disbursed in the manner hereinabove provided. In fixing and
421	421	determining the amount of revenues which shall be so set aside, the
422	422	Board of Directors shall provide that the amount to be set aside and
423	423	paid into said fund in any year or years shall be not less than a
424	424	fixed sum, which sum shall be at least sufficient to provide for the
425	425	payment of the interest on and principal of all obligations
426	426	maturing and becoming payable in each such year, together with a
427	427	surplus or margin of ten per cent in excess thereof.
428	428	[Sec. 24. The proceeds of the sale of any obligations issued
429	429	hereunder may be deposited in such bank or banks as may be agreed
430	430	upon between the purchaser at such sale and the Board of Directors,
431	431	and may be deposited and paid out pursuant to such terms and
432	432	conditions as may be so agreed upon, it being expressly provided
433	433	that the statutes of Texas pertaining to the deposit of the district
434	434	funds in the depository of such district shall not be applicable to
435	435	the deposit of the proceeds of such sale. Any part of the proceeds
436	436	of the sale of obligations issued hereunder which may remain
437	437	unexpended after the project for which the obligations were
438	438	authorized has been completed may be paid into the sinking fund for
439	439	the payment of said obligations and be used only for the payment of
440	440	principal of such obligations, or for the purposes of acquiring
441	441	such outstanding obligations by purchase in the manner hereinabove
442	442	provided.
443	443	[Sec. 27. Such district issuing obligations under the
444	444	provisions hereof may thereafter authorize and issue its refunding
445	445	obligations on such terms as its Board of Directors may deem
446	446	advisable for the purpose of providing for the retirement of any
447	447	such outstanding obligations, either due or to become due, which
448	448	refunding obligations may be either exchanged for like par amounts
449	449	of such outstanding obligations or may be sold and the proceeds of
450	450	the sale so applied. Any refunding obligations authorized and
451	451	issued pursuant hereto shall be subject to the provisions of this
452	452	Act pertaining to the issuance of other obligations and shall be
453	453	secured in all respects to the same extent and be payable from the
454	454	same revenues as were the obligations refunded thereby.
455	455	[Sec. 27-a. Before any such obligation shall be issued,
456	456	such district shall submit a certified copy thereof and of the
457	457	proceedings for their issuance, together with any additional
458	458	information which may be required, to the Attorney General of Texas
459	459	for approval, and when so approved, such obligations shall be
460	460	issued after registration with the Comptroller of the State of
461	461	Texas.
462	462	[Sec. 28. This Act, without reference to other statutes of
463	463	the State of Texas, shall constitute full authority for the
464	464	authorization and issuance of obligations hereunder and for the
465	465	accomplishment of all things herein authorized to be done, and no
466	466	proceedings relating to the authorization or issuance of such
467	467	obligation or the doing of such things shall be necessary except
468	468	such as are herein required, and neither the Bond and Warrant Law of
469	469	1931 or any other provisions of the laws of the State of Texas
470	470	pertinent to the authorization or issuance of obligations, the
471	471	operation and maintenance of such improvements and facilities, the
472	472	granting of franchises or permits, the right to elections or
473	473	referendum petitions, or in anywise impeding or restricting the
474	474	carrying out of the acts authorized to be done hereunder, shall be
475	475	construed as applying to any proceedings and hereunder or acts done
476	476	pursuant hereto.
477	477	[Sec. 29. Nothing in this Act shall be construed as
478	478	affecting any existing rights or existing priorities in the rights
479	479	to water from the source of supply and neither the formation of the
480	480	district hereunder nor a contract for the purchase of water with
481	481	such district shall ever be held to be an abandonment of waiver of
482	482	said rights or priorities, or an abandonment of the original point
483	483	of diversion from the source of supply, but all such rights existing
484	484	at the time of the formation of such district shall be preserved.
485	485	[Sec. 29-a. That said district or the contractor who
486	486	employs the labor for the construction of any improvements for said
487	487	district shall be required to give preference to persons who are on
488	488	relief rolls or otherwise unemployed, including those required for
489	489	office or clerical work, but excepting the key workers of such
490	490	district or such contractor, provided such persons on relief or
491	491	unemployed are capable of efficiently rendering the proper service
492	492	in the various classifications of labor under which they are
493	493	employed, and in the event there are not sufficient persons with the
494	494	proper qualifications as aforesaid, then the district or the
495	495	contractor shall give preference to employment of qualified workers
496	496	who reside in the locality where such improvements are to be
497	497	constructed; and every contract expressly entered into by the
498	498	district hereunder shall impose upon the contractor the obligation
499	499	to give preference in employment to such needy persons upon relief
500	500	rolls or otherwise as provided herein and shall expressly impose
501	501	upon such contractor the obligations provided for in this Section;
502	502	provided nothing in this Section contained shall conflict with the
503	503	requirements of any Federal agency providing any funds for such
504	504	District.
505	505	[Sec. 29-d. There is hereby appropriated and there shall be
506	506	paid to said District out of the General Fund not otherwise
507	507	appropriated the sum of Fifteen Thousand Dollars ($15,000.00),
508	508	which said sum shall be used for defraying the expenses of making
509	509	engineering surveys, plans and specifications, for the compilation
510	510	of other necessary data, for abstracts of title, and for the payment
511	511	of necessary and proper expenses incidental to the application and
512	512	negotiations for and securing the aid and assistance of the Federal
513	513	Emergency Administration of Public Works, or other Governmental
514	514	bodies of the United States, and in connection with the
515	515	organization of the District. Provided, however, that none of the
516	516	amount appropriated herein shall be used to pay any expenses or
517	517	costs incurred prior to the effective date of this Bill. Provided
518	518	that none of the funds herein appropriated shall be used to pay for
519	519	options on lands in said District.]
520	520	SECTION 2. (a) All governmental acts and proceedings taken
521	521	by the board of directors of the Lower Neches Valley Authority
522	522	before the effective date of this Act in reliance on the local law
523	523	of that district as it existed before that date are validated as of
524	524	the date they occurred.
525	525	(b) This Act does not validate an act or proceeding that on
526	526	the effective date of this Act:
527	527	(1) is involved in litigation if the litigation
528	528	ultimately results in the act or proceeding being held invalid by a
529	529	final court judgment; or
530	530	(2) has been held invalid by a final court judgment.
531	531	SECTION 3. This Act does not:
532	532	(1) limit the powers granted to the Lower Neches
533	533	Valley Authority by any other law;
534	534	(2) impliedly repeal any laws granting powers to the
535	535	Lower Neches Valley Authority; or
536	536	(3) affect the entitlement of a person serving as a
537	537	member or officer of the board of directors of the Lower Neches
538	538	Valley Authority immediately before the effective date of this Act
539	539	to continue to carry out the board's functions for the remainder of
540	540	the person's term of office.
541	541	SECTION 4. The change in law made by this Act to Section 12,
542	542	Chapter 63, Acts of the 43rd Legislature, 1st Called Session, 1933,
543	543	does not apply to an offense committed under that section before the
544	544	effective date of this Act. An offense committed before the
545	545	effective date of this Act is governed by the law as it existed on
546	546	the date the offense was committed, and the former law is continued
547	547	in effect for that purpose. For purposes of this section, an
548	548	offense was committed before the effective date of this Act if any
549	549	element of the offense occurred before that date.
550	550	SECTION 5. (a) The legal notice of the intention to
551	551	introduce this Act, setting forth the general substance of this
552	552	Act, has been published as provided by law, and the notice and a
553	553	copy of this Act have been furnished to all persons, agencies,
554	554	officials, or entities to which they are required to be furnished
555	555	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
556	556	Government Code.
557	557	(b) The governor, one of the required recipients, has
558	558	submitted the notice and Act to the Texas Commission on
559	559	Environmental Quality.
560	560	(c) The Texas Commission on Environmental Quality has filed
561	561	its recommendations relating to this Act with the governor, the
562	562	lieutenant governor, and the speaker of the house of
563	563	representatives within the required time.
564	564	(d) All requirements of the constitution and laws of this
565	565	state and the rules and procedures of the legislature with respect
566	566	to the notice, introduction, and passage of this Act are fulfilled
567	567	and accomplished.
568	568	SECTION 6. This Act takes effect immediately if it receives
569	569	a vote of two-thirds of all the members elected to each house, as
570	570	provided by Section 39, Article III, Texas Constitution. If this
571	571	Act does not receive the vote necessary for immediate effect, this
572	572	Act takes effect September 1, 2011.
573	573	* * * * *