Texas 2011 82nd Regular

Texas Senate Bill SB936 Introduced / Bill

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                    82R9151 PMO-D
 By: Williams S.B. No. 936


 A BILL TO BE ENTITLED
 AN ACT
 relating to the law governing the Lower Neches Valley Authority;
 providing authority to issue bonds.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Chapter 63, Acts of the 43rd Legislature, 1st
 Called Session, 1933, is amended by amending Sections 1, 4, 5, 6, 7,
 8, 9, 10, 11, 12, 13, 13A, 14, 16, 17, 18, 19, 21, 24, 27, 27-a, 28,
 29, 29-a, and 29-d and adding Sections 13A-1 through 13A-6 to read
 as follows:
 Sec. 1.  That there shall be and is hereby created a
 conservation and reclamation district by the name of "Lower Neches
 Valley Authority," which district is created as a governmental
 agency, body politic and corporate, vested with all the authority
 as such under the Constitution and Laws of the State; and which
 shall have and be recognized to exercise all of the powers of such
 governmental agency and body politic and corporate as are expressly
 authorized in the provisions of the Constitution, Section 59 of
 Article 16, for districts created to conserve, store, control,
 preserve, utilize and distribute the storm and flood waters and the
 waters of the rivers and streams of the State, and such powers as
 may be [contemplated and] implied by the purposes of this provision
 of the Constitution, and as may be conferred by General Law, as well
 as by the provisions of this Act, except nothing herein contained
 shall authorize said district to levy any taxes or special
 assessments, or to create any debt payable out of taxation; and said
 district shall have and be recognized to exercise all the rights and
 powers of an independent governmental agency, body politic and
 corporate, to construct, maintain and operate, in the Neches River
 basin and the adjoining Neches-Trinity coastal basin [valleys of
 the Neches River and its tributaries], within or without the
 boundaries of such district, any and all works deemed essential to
 the operation of the district and for its administration in the
 control, storing, preservation and distribution to all useful
 purposes of the waters of the Neches River basin and the adjoining
 Neches-Trinity coastal basin [and its tributary streams],
 including the storm and flood waters thereof; and such district
 shall have and be recognized to exercise such authority and power of
 control and regulation over such waters [of the Neches River and its
 tributaries] as may be exercised by the State of Texas, subject to
 the provisions of the Constitution and the Acts of the Legislature.
 Sec. 4.  [The directors of the district shall organize by
 electing one of their members president, one vice-president, one
 treasurer, and one secretary.] Five [(5)] directors shall
 constitute a quorum at any meeting and a concurrence of a majority
 of the directors [those] present shall be sufficient in all matters
 pertaining to the business of the district[, except the letting of
 construction contracts and the authorization of issuance of
 warrants paying therefor, which shall require the concurrence of
 seven (7) directors. Warrants for the payment of money may be drawn
 and signed by two (2) officers or employees designated by standing
 order entered on the minutes of the directors when such accounts
 have been contracted and ordered paid by the Board of Directors].
 [Sec.   5.     The directors of the district shall require all
 officers and employees who shall be charged with the collection or
 paying or handling of any funds of the district under their orders,
 to furnish good and sufficient bonds, with a duly authorized surety
 company as surety thereon, payable to the district, conditioned
 upon the faithful performance of their duties and accounting for
 all funds and property of the district coming into their hands,
 which bonds shall be in sufficient sums to safeguard the district.
 [Sec.   6.     The president shall preside at all meetings of the
 Board and shall be the chief executive officer of the district. The
 vice-president shall act as president in case of the absence or
 disability of the president. The secretary shall act as secretary
 of the Board of Directors and shall be charged with the duty of
 seeing that all records and books of the district are properly kept.
 In case of the absence or inability of the secretary to act, a
 secretary pro tem shall be selected by the directors. The directors
 shall hold regular meetings at the office of the district on the
 first Monday in February, May, August and November of each year at
 10 o'clock A. M., and may hold other meetings at such other times as
 the business of the district may require.]
 Sec. 7. (a) A director is entitled to receive a fee of office
 for each day of service approved by a vote of the Board of Directors
 and necessary to discharge the director's duties.
 (b)  The Board of Directors shall set the fee described by
 Subsection (a) in an amount not greater than the amount allowed
 under general law. [The directors shall receive as fees of office
 the sum of not to exceed Ten ($10.00) Dollars per day for each day of
 service necessary to discharge of their duties, provided such
 service is authorized by vote of the Board of Directors. They shall
 file with the secretary a verified statement showing the actual
 number of days of service each month on the last day of the month, or
 as soon thereafter as possible and before a warrant shall be issued
 therefor.
 [Sec.   8.     The directors shall keep a true and full account of
 all their meetings and proceedings and maintain their records in a
 secure manner. The same shall be the property of the district and
 subject to public inspection. A regular office shall be established
 and maintained for conduct of the district business within the
 district.
 [Sec.   9.     A complete book of accounts shall be kept. The
 account books and records of the district and of the depository of
 the district shall be audited by a Certified Public Accountant
 annually as soon as practicable after the expiration of each year,
 such audit to cover the preceding calendar year, and report thereon
 shall be submitted to the first regular meeting of the Board of
 Directors thereafter. Said report shall be in quadruplicate, one
 copy being filed in the office of the district, one with the
 depository of the district, one in the office of the auditor and one
 with the State Board of Water Engineers, all of which shall be open
 to public inspection.
 [Sec.   10.     The directors may employ a general manager for the
 district and may give him full authority in the management and
 operation of the district affairs (subject only to the orders of the
 Board of Directors). The term of office and compensation to be paid
 such managers and all employees shall be fixed by the Board of
 Directors and all employees may be removed by the Board.
 [Sec.   11.     All bonds required to be given by directors,
 officers and employees of the district shall be executed by a surety
 company authorized to do business in the State, as surety thereon;
 and the district shall be authorized to pay the premiums on such
 bonds.
 [Sec.   12.     No director of any such district, engineer or
 employees thereof shall be, directly or indirectly, interested
 either for themselves or as agents for any one else in any contract
 for the purchase or construction of any work by said district, and
 if any such person shall, directly or indirectly, become interested
 in any such contract, he shall be guilty of a misdemeanor, and on
 conviction thereof shall be punished by a fine in any sum not to
 exceed One Thousand ($1,000.00) Dollars, or by confinement in the
 county jail not less than six months nor more than one year, or by
 both fine and imprisonment.]
 Sec. 13A-1 [13].  In [The said district shall have and be
 recognized to exercise, in] addition to all the hereinbefore
 mentioned powers, and for the conservation and beneficial use
 [utilization] of the [said] waters of the Neches River basin and the
 adjoining Neches-Trinity coastal basin, including storm water and
 floodwater, the district may[, the power of] control and use such
 waters [employment of such waters of the Neches River and its
 tributaries, including the storm and floodwaters thereof,] in the
 manner and for the particular purposes described below [hereinafter
 set forth]:
 (a)  to [To] provide through practical and legal means for
 the control and coordination of the regulation of such [the]
 waters; [of the Neches River and its tributary streams.]
 (b)  to [To] provide by adequate organization and
 administration for the preservation of the equitable rights of the
 people of the different sections of the watershed area in the
 beneficial use of such [the] waters; [of the Neches River and its
 tributary streams.]
 (c)  for [For] storing, controlling and conserving such
 [the] waters inside or outside the [of the Neches River and its
 tributaries within and/or without such] district, and the
 prevention of the escape of any of such waters without the maximum
 of public service; for the prevention of devastation of lands from
 recurrent overflows, and the protection of life and property in the
 [such] district from uncontrolled flood waters;[.]
 (d)  for [For] the conservation of such [the] waters [of the
 Neches River and its tributaries] essential for the domestic and
 municipal uses of the people of the district;[, including all
 necessary water supplies for cities and towns.]
 (e)  for [For] the irrigation of all lands in the [said]
 district or outside the [and/or lands without said] district but
 within the Neches River basin and the adjoining Neches-Trinity
 coastal basin [said watershed area, where irrigation is required
 for agricultural purposes, or may be deemed helpful to more
 profitable agricultural production]; and for the equitable
 distribution of such [said] waters to the regional potential
 requirements for all uses[, domestic, manufacturing, and
 irrigation]. All plans and all works provided by the [said]
 district, and as well, all works which may be provided under
 authority of the [said] district, shall have primary regard to the
 necessary and potential needs for water, by or within the area in
 the [such] district constituting the Neches River basin and the
 adjoining Neches-Trinity coastal basin; [water shed of the Neches
 River and its tributary streams.]
 (f)  to provide for [For] the [better encouragement and
 development of drainage systems and provisions for] drainage of
 lands in the Neches River basin and the adjoining Neches-Trinity
 coastal basin; [valleys of the Neches River and its tributary
 streams needing drainage for profitable agricultural production;
 and drainage for other lands in the watershed area of the district
 requiring drainage for the most advantageous use.]
 (g)  to encourage [For the purpose of encouraging] the
 conservation of soil and to prevent [all soils against] destructive
 erosion; [and thereby preventing the increased flood menace
 incident thereto.]
 (h)  to [To] control such waters and make such waters
 available for use [employment said waters] in the development of
 commercial and industrial enterprises in the Neches River basin and
 the adjoining Neches-Trinity coastal basin or [all sections of the
 watershed area of] the district;[.]
 (i)  to [For the] control, store, [storing] and use such
 [employment of said] waters in the development and distribution of
 hydroelectric power, if that [where such] use is [may be]
 economically coordinated with and subordinate to other [and
 superior uses, and subordinated to the] uses declared by law to be
 superior; and[.]
 (j)  [And] for each and every purpose for which flood and
 storm waters when controlled and conserved may be utilized in the
 performance of a useful service as [contemplated and] authorized
 by the provisions of the Constitution and the public policy therein
 declared.
 (k)  Nothing in this section is a limitation on the powers of
 the district expressed elsewhere in this Act or under other law.
 Sec. 13A-2.  The district may [To] purchase or [and/or]
 construct all works necessary or convenient for the exercise of the
 powers and to accomplish the purposes specified in this Act, and may
 [to] purchase or otherwise acquire all lands or [and/or] other
 property necessary or convenient for carrying out any such
 purposes.
 Sec. 13A-3. [(l)]  The right of eminent domain is expressly
 conferred upon such district to enable it to acquire the fee simple
 title to, and/or easement or right-of-way over and through, any and
 all lands, water or lands under water, private or public, within and
 without such district, necessary or convenient to carry out any of
 the purposes and powers conferred upon such district by this Act.
 All such condemnation proceedings shall be under the direction of
 the direction of the directors and in the name of the district, and
 the assessment of damages and all procedure with reference to
 condemnation, appeal and payment shall be in conformity with the
 statutes of this State as provided in the title of the Revised
 Statutes relating to "Eminent Domain."
 Sec. 13A-4.  (a) [(m)] The Board of Directors of the [said]
 district shall prescribe fees and charges to be collected for the
 use of water, water connections or other services [service], which
 fees and charges shall be reasonable and equitable and fully
 sufficient to produce revenues adequate to pay, and the [said]
 Board of Directors shall cause to be paid therefrom:
 (1)  all [All] expenses necessary to the operation and
 maintenance of the improvements and facilities of the [said]
 district. Such operating and maintenance expenses shall include the
 cost of the acquisition of properties and materials necessary to
 maintain the [said] improvements and facilities in good condition
 and to operate them efficiently, necessary wages and salaries of
 the district, and such other expenses as may be reasonably
 necessary to the efficient operation of the [said] improvements and
 facilities;[.]
 (2)  the [The annual or semi-annual] interest upon any
 obligations issued hereunder payable out of the revenues of said
 improvements and facilities; and[.]
 (3)  the [The] amount required to be paid [annually
 into the sinking fund] for the payment of any obligations issued
 hereunder payable out of the revenues of said improvements and
 facilities.
 (b)  Out [No other charge shall be made upon the revenues
 derived from said improvements and facilities so long as any
 obligations issued hereunder shall remain outstanding and unpaid as
 to principal or interest; provided, however, that out] of revenues
 which may be received in excess of those required for the purposes
 listed in the above Subsections (a)(1) [sub-paragraphs (1)], (2)
 and (3), the Board of Directors may pay the cost of improvements and
 replacements not covered by Subsection (a)(1) [said sub-paragraph
 (1)], and may establish a reasonable depreciation and emergency
 fund.
 (c)  It is the intent of this Act that the fees and charges of
 the [such] district shall not be in excess of what may be reasonably
 necessary to fulfill the obligations imposed upon the [said]
 district by this Act.
 Sec. 13A-5.  The [(n)     Such district through its Board of
 Directors, shall have the right to employ managers, engineers,
 attorneys, and all necessary employees to properly construct,
 operate and maintain said works and carry out the provisions of this
 Act and to pay reasonable compensation fixed by the Board of
 Directors for such services.
 [(o)  Such] district, in addition to the powers hereinabove
 set out, shall have general power and authority to make and to enter
 into all contracts, leases, and agreements necessary or convenient
 to carry out any of the powers granted in this Act, which contracts,
 leases, and agreements may be entered into with any person, real or
 artificial, any corporation, municipal, public or private, or
 [and/or] any government or governmental agency, including the
 United States Government and the State of Texas, and may convey or
 cause to be conveyed any of its properties, rights, lands,
 tenements, easements, improvements, reservoirs, dams, canals,
 plants, laterals, works and facilities to the United States
 Government or any agency thereof, and may enter into a lease with
 the United States Government, or any agency thereof, relative
 thereto, and obligate itself to pay rental therefor out of the
 income and revenues thereof, with or without the privilege of
 purchase; provided, however, that nothing herein contained shall
 authorize the assumption by the [such] district of any obligation
 requiring payment out of taxes. Any and all such contracts, leases,
 and agreements herein authorized shall be approved by resolution of
 the Board of Directors of the [such] district, and shall be executed
 by the president and attested by the secretary thereof.
 Sec. 13A-6.  The district may acquire land for recreational
 facilities and may construct, operate, and maintain recreational
 facilities as provided by general law, provided [(p)     Such district
 shall have the right to sue and be sued.
 [(q)     Before such district shall establish a diversion
 point, construct the canals, pumping plants and other works herein
 provided for, it shall present to the Board of Water Engineers of
 the State of Texas, or such other agency performing the functions
 now performed by the Board of Engineers, plans and specifications
 of the same and obtain the approval of such Board.
 [Sec.   13A.     From and after the effective date of this Act,
 Lower Neches Valley Authority shall have the right and power to
 acquire and own lands within said district by purchase for the
 purpose of operating and maintaining same as public parks for
 public recreation, and said district shall have the power to
 construct improvements and facilities and to operate same on such
 lands to accomplish such purpose. Provided,] that no funds derived
 from taxation shall be expended in purchasing that land [said
 lands] or constructing and maintaining those [said improvements
 and] facilities.
 Sec. 14.  The powers and duties herein devolved upon the
 [said] district, and the adequacy of any plan for flood control or
 conservation improvement purposes devised by the district, shall be
 subject to such [the] continuing rights of state supervision and
 state approvals as are required under [by the State which shall be
 exercised through the State Board of Water Engineers, and in
 appropriate instances, by the State Reclamation Engineer, each of
 which agencies shall be charged with the authority and duty to
 approve, or to refuse to approve, the adequacy of any plan or plans
 for flood control or conservation improvement purposes devised by
 the district for the achievement of the plans and purposes intended
 in the creation of the district, and which plans contemplate
 improvements supervised by the respective state authorities under
 the Provisions of the] General Law.
 Sec. 16.  The [Said] district may borrow money for any
 corporate purpose from [the Federal Emergency Administration of
 Public Works of the United States, or from any other department or
 agency of the United States, or from] any [other] source, and in
 evidence thereof may issue the notes, warrants, bonds, certificates
 of indebtedness, or other forms of obligations of the [such]
 district, payable solely out of the revenues to be derived from
 district [said] improvements and facilities and the operations and
 services thereof.
 [Sec.   17.     Each issue of obligations authorized hereunder
 shall constitute a separate series and shall be appropriately
 designated. Such obligations shall not constitute an indebtedness
 or pledge of the credit of such district, shall never be paid in
 whole or in part out of any funds raised or to be raised by taxation,
 and shall contain a recital to that effect. All obligations issued
 hereunder shall be in registered or coupon form and if in coupon
 form may be registerable as to principal only, or as to both
 principal and interest, shall bear interest at a rate not to exceed
 six per cent per annum, payable annually or semi-annually, and
 shall be in such denominations and shall mature serially or at one
 time not more than fifty years from their date in such manner as may
 be provided by the Board of Directors. Principal of and interest on
 such obligations shall be made payable at any place or places within
 or without the State of Texas and in the discretion of the Board of
 Directors such obligations may be made redeemable at the option of
 said Board prior to maturity at such premium or premiums as the
 Board shall determine. Such obligations shall be signed by the
 president and secretary of the Board of Directors, and the interest
 coupons attached thereto may be executed with the facsimile
 signatures of such officers. Such obligations shall be sold in such
 manner and at such time as the Board of Directors shall determine to
 be expedient and necessary to the interests of the district,
 provided, that in no event shall such obligations be sold for a
 price which will result in an interest yield therefrom of more than
 six per cent computed to maturity according to standard bond tables
 in general use by banks and insurance companies. In the event any of
 the officers whose signatures are on such obligations or coupons
 shall cease to be such officers before the delivery of such
 obligations to the purchaser, such signature or signatures,
 nevertheless, shall be valid and sufficient for all purposes. All
 obligations issued hereunder shall constitute negotiable
 instruments within the meaning of the Negotiable Instruments Law.
 [Sec.   18.     Any obligations issued hereunder may be issued
 payable from and secured by the pledge of all the revenues derived
 from the operation of the improvements and facilities of the
 district, exclusive of any revenues derived from taxation or
 assessments, or may be payable from and secured by the pledge of
 only such revenues as may be derived from the operation of the
 improvements and facilities acquired with the proceeds of the sale
 of such obligations, or may be payable from and secured by the
 pledge of a specified part of the revenues derived from the
 operation of the improvements and facilities of the district, all
 as may be provided in the proceedings authorizing the issuance of
 such obligations. If more than one series of obligations shall be
 issued under the provisions of this Act payable from and secured by
 identical revenues, priority of lien against such revenues shall
 depend on the time of delivery of such obligations, each series
 enjoying a lien against such revenues prior and superior to that
 enjoyed by any other series of obligations subsequently delivered,
 provided, however, that as to any issue or series of obligations
 which may be authorized as a unit but delivered from time to time in
 blocks, the Board of Directors may in proceedings authoring the
 issuance of such obligations provide that all of the obligations of
 such series or issue shall be co-equal as to lien regardless of the
 time of delivery.
 [Sec.   19.     Any resolution or order authorizing the issuance
 of obligations under the provisions hereof shall provide for the
 creation of a sinking fund into which shall be paid from the
 revenues pledged to the payment of such obligations from month to
 month as said revenues are collected, sums fully sufficient to pay
 principal of and interest on such obligations. The money in such
 sinking fund shall be applied solely to the payment of interest on
 the obligations for the payment of which such fund is created and
 for the retirement of said obligations at or prior to maturity in
 the manner herein provided. The Board of Directors may at the time
 obligations are authorized hereunder provide that all money in such
 sinking fund in excess of the amount required for the payment of
 interest on and principal of such outstanding obligations for such
 period as it may determine shall be expended once each year pursuant
 to its order in the purchase of obligations for the account of which
 such sinking fund has been accumulated, if any such obligations can
 be purchased at a price which shall seem reasonable to the Board,
 and may provide that in the event such obligations contain an option
 permitting retirement prior to maturity then such excess sums shall
 be paid out as aforesaid for the purchase of such obligations, but
 that if the Board shall be unable to so purchase sufficient
 obligations of said issue to absorb all such surplus it shall call
 for redemption a sufficient amount of such obligations to absorb so
 far as practicable the entire surplus remaining in said sinking
 fund. It may be provided that any excess in the sinking fund which
 cannot be applied to the purchase or redemption of obligations
 shall remain in said sinking fund to be used for payment of
 principal or interest when due, or for the subsequent call of
 obligations for purchase or redemption in the manner above
 provided.
 [Sec.   21.     Any resolution or order authorizing the issuance
 of obligations hereunder shall provide that the revenues from which
 such obligations are to be paid and which are pledged to the payment
 of such obligations shall from month to month as the same shall
 accrue and be received, be set apart and placed in the sinking fund
 and disbursed in the manner hereinabove provided. In fixing and
 determining the amount of revenues which shall be so set aside, the
 Board of Directors shall provide that the amount to be set aside and
 paid into said fund in any year or years shall be not less than a
 fixed sum, which sum shall be at least sufficient to provide for the
 payment of the interest on and principal of all obligations
 maturing and becoming payable in each such year, together with a
 surplus or margin of ten per cent in excess thereof.
 [Sec.   24.     The proceeds of the sale of any obligations issued
 hereunder may be deposited in such bank or banks as may be agreed
 upon between the purchaser at such sale and the Board of Directors,
 and may be deposited and paid out pursuant to such terms and
 conditions as may be so agreed upon, it being expressly provided
 that the statutes of Texas pertaining to the deposit of the district
 funds in the depository of such district shall not be applicable to
 the deposit of the proceeds of such sale. Any part of the proceeds
 of the sale of obligations issued hereunder which may remain
 unexpended after the project for which the obligations were
 authorized has been completed may be paid into the sinking fund for
 the payment of said obligations and be used only for the payment of
 principal of such obligations, or for the purposes of acquiring
 such outstanding obligations by purchase in the manner hereinabove
 provided.
 [Sec.   27.     Such district issuing obligations under the
 provisions hereof may thereafter authorize and issue its refunding
 obligations on such terms as its Board of Directors may deem
 advisable for the purpose of providing for the retirement of any
 such outstanding obligations, either due or to become due, which
 refunding obligations may be either exchanged for like par amounts
 of such outstanding obligations or may be sold and the proceeds of
 the sale so applied. Any refunding obligations authorized and
 issued pursuant hereto shall be subject to the provisions of this
 Act pertaining to the issuance of other obligations and shall be
 secured in all respects to the same extent and be payable from the
 same revenues as were the obligations refunded thereby.
 [Sec.   27-a.     Before any such obligation shall be issued,
 such district shall submit a certified copy thereof and of the
 proceedings for their issuance, together with any additional
 information which may be required, to the Attorney General of Texas
 for approval, and when so approved, such obligations shall be
 issued after registration with the Comptroller of the State of
 Texas.
 [Sec.   28.     This Act, without reference to other statutes of
 the State of Texas, shall constitute full authority for the
 authorization and issuance of obligations hereunder and for the
 accomplishment of all things herein authorized to be done, and no
 proceedings relating to the authorization or issuance of such
 obligation or the doing of such things shall be necessary except
 such as are herein required, and neither the Bond and Warrant Law of
 1931 or any other provisions of the laws of the State of Texas
 pertinent to the authorization or issuance of obligations, the
 operation and maintenance of such improvements and facilities, the
 granting of franchises or permits, the right to elections or
 referendum petitions, or in anywise impeding or restricting the
 carrying out of the acts authorized to be done hereunder, shall be
 construed as applying to any proceedings and hereunder or acts done
 pursuant hereto.
 [Sec.   29.     Nothing in this Act shall be construed as
 affecting any existing rights or existing priorities in the rights
 to water from the source of supply and neither the formation of the
 district hereunder nor a contract for the purchase of water with
 such district shall ever be held to be an abandonment of waiver of
 said rights or priorities, or an abandonment of the original point
 of diversion from the source of supply, but all such rights existing
 at the time of the formation of such district shall be preserved.
 [Sec.   29-a.     That said district or the contractor who
 employs the labor for the construction of any improvements for said
 district shall be required to give preference to persons who are on
 relief rolls or otherwise unemployed, including those required for
 office or clerical work, but excepting the key workers of such
 district or such contractor, provided such persons on relief or
 unemployed are capable of efficiently rendering the proper service
 in the various classifications of labor under which they are
 employed, and in the event there are not sufficient persons with the
 proper qualifications as aforesaid, then the district or the
 contractor shall give preference to employment of qualified workers
 who reside in the locality where such improvements are to be
 constructed; and every contract expressly entered into by the
 district hereunder shall impose upon the contractor the obligation
 to give preference in employment to such needy persons upon relief
 rolls or otherwise as provided herein and shall expressly impose
 upon such contractor the obligations provided for in this Section;
 provided nothing in this Section contained shall conflict with the
 requirements of any Federal agency providing any funds for such
 District.
 [Sec.   29-d.     There is hereby appropriated and there shall be
 paid to said District out of the General Fund not otherwise
 appropriated the sum of Fifteen Thousand Dollars ($15,000.00),
 which said sum shall be used for defraying the expenses of making
 engineering surveys, plans and specifications, for the compilation
 of other necessary data, for abstracts of title, and for the payment
 of necessary and proper expenses incidental to the application and
 negotiations for and securing the aid and assistance of the Federal
 Emergency Administration of Public Works, or other Governmental
 bodies of the United States, and in connection with the
 organization of the District. Provided, however, that none of the
 amount appropriated herein shall be used to pay any expenses or
 costs incurred prior to the effective date of this Bill. Provided
 that none of the funds herein appropriated shall be used to pay for
 options on lands in said District.]
 SECTION 2.  (a)  All governmental acts and proceedings taken
 by the board of directors of the Lower Neches Valley Authority
 before the effective date of this Act in reliance on the local law
 of that district as it existed before that date are validated as of
 the date they occurred.
 (b)  This Act does not validate an act or proceeding that on
 the effective date of this Act:
 (1)  is involved in litigation if the litigation
 ultimately results in the act or proceeding being held invalid by a
 final court judgment; or
 (2)  has been held invalid by a final court judgment.
 SECTION 3.  This Act does not:
 (1)  limit the powers granted to the Lower Neches
 Valley Authority by any other law;
 (2)  impliedly repeal any laws granting powers to the
 Lower Neches Valley Authority; or
 (3)  affect the entitlement of a person serving as a
 member or officer of the board of directors of the Lower Neches
 Valley Authority immediately before the effective date of this Act
 to continue to carry out the board's functions for the remainder of
 the person's term of office.
 SECTION 4.  The change in law made by this Act to Section 12,
 Chapter 63, Acts of the 43rd Legislature, 1st Called Session, 1933,
 does not apply to an offense committed under that section before the
 effective date of this Act. An offense committed before the
 effective date of this Act is governed by the law as it existed on
 the date the offense was committed, and the former law is continued
 in effect for that purpose. For purposes of this section, an
 offense was committed before the effective date of this Act if any
 element of the offense occurred before that date.
 SECTION 5.  (a) The legal notice of the intention to
 introduce this Act, setting forth the general substance of this
 Act, has been published as provided by law, and the notice and a
 copy of this Act have been furnished to all persons, agencies,
 officials, or entities to which they are required to be furnished
 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
 Government Code.
 (b)  The governor, one of the required recipients, has
 submitted the notice and Act to the Texas Commission on
 Environmental Quality.
 (c)  The Texas Commission on Environmental Quality has filed
 its recommendations relating to this Act with the governor, the
 lieutenant governor, and the speaker of the house of
 representatives within the required time.
 (d)  All requirements of the constitution and laws of this
 state and the rules and procedures of the legislature with respect
 to the notice, introduction, and passage of this Act are fulfilled
 and accomplished.
 SECTION 6.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution. If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2011.