H.B. No. 1920
AN ACT
relating to the Palo Duro River Authority, following
recommendations of the Sunset Advisory Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, and 12,
Chapter 438, Acts of the 63rd Legislature, Regular Session, 1973,
are amended to read as follows:
Sec. 1. By virtue of Section 59, Article XVI of the
Constitution of the State of Texas, there is hereby created a
conservation and reclamation district to be known as "Palo Duro
Water District," [River Authority of Texas" (hereinafter sometimes
referred to as the "Authority")] which shall be a governmental
agency, a body politic and corporate, and a political subdivision
of this state.
Sec. 2. The district [Authority] hereby created and
established shall comprise all of the territory contained within
the Counties of Hansford and Moore and the City of Stinnett
[Ochiltree]. It is hereby found and determined that all of the land
thus included in the district [Authority] will be benefited by the
improvements to be acquired and constructed by the district
[Authority], and that the district [Authority] is created to serve
a public use and benefit.
Sec. 3. The district, inside or outside its boundaries,
[Authority within its limits] is hereby empowered: (a) to develop,
construct or purchase dams and reservoirs. The district
[Authority] is empowered to construct or to purchase all plants and
other facilities necessary or useful for the purpose of providing a
source of water supply and storing, processing such water and
transporting and distributing it for irrigation, livestock
raising, agricultural, municipal, domestic and industrial
purposes. The district [Authority] shall at all times have power to
develop or purchase additional sources of water and to improve,
enlarge and extend its water system. The district [Authority] is
also empowered to make contracts for the purchase of water; (b) in
order to preserve and protect the purity of the waters of the state
and of the district [Authority] and conserve and reclaim said
waters for beneficial use by the inhabitants of the district
[Authority], to provide all plants, works, facilities and
appliances incident to or helpful or necessary to the collection,
transportation, processing, disposal, and control of such waters
for agricultural, municipal, domestic, oil field flooding, mining
and industrial purposes; and (c) the district [Authority] is
empowered to impound, store, control and conserve the storm and
flood waters and the unappropriated flow waters [within the limits
of the Authority], including but not limited to the storm and flood
waters and unappropriated flow waters of Palo Duro Creek and Horse
Creek, [River and the tributaries thereof within and without its
watershed] by complying with the provisions of Chapter 1, Title
128, Revised Civil Statutes of Texas, as amended.
Sec. 5. (a) The district may not construct a [No] dam or
other facility [facilities] for impounding water [shall be
constructed] until the plans therefor are approved by the
commission [Texas Water Rights Commission]. The Authority is not
authorized to develop or otherwise acquire underground sources of
water.
(b) The district [Authority] may sell, trade, or otherwise
dispose of any real or personal property deemed by the district
[this Commission] not to be needed for district [Authority]
purposes, subject to the terms of any deed of trust or other
indenture [issued by the Commission].
Sec. 6. The district [Authority] is authorized to enter
into contracts with cities and others for supplying water to them.
The district [Authority] is also authorized to contract with any
city for the rental or leasing of, or for the operation of the water
production, water supply, and water filtration or purification [and
water supply] facilities of such city upon such consideration as
the district [Authority] and the city may agree. Any such contract
may be upon such terms and for such time as the parties may agree,
and it may provide that it shall continue in effect until bonds
specified therein and refunding bonds issued in lieu of such bonds
are paid.
Sec. 7. The district [Authority] is empowered to obtain
through appropriate hearings an appropriation permit or permits
from the commission [Texas Water Rights Commission], as provided in
Chapter 1 of Title 128, Revised Civil Statutes of 1925, as amended.
Thereafter such permit, either upon application of the district
[Authority] or at the will of the commission [Texas Water Rights
Commission], may be modified by the commission [said Commission]
after an appropriate hearing to increase or decrease the amount of
water which may be appropriated[,] and the amount which may be
stored by the district [Authority] to meet fluctuating demands.
On[, either upon] application by the district [Authority] or by its
own action the commission [Texas Water Rights Commission] shall
redetermine the maximum amount of water which the district
[Authority] may store in its reservoir and in making such
determination it shall consider the needs of the cities and others
that purchase water from the district [Authority].
Sec. 8. The district [Authority] is authorized to acquire
or construct within or without the boundaries of the district
[Authority,] a dam or dams and all works, plants and other
facilities necessary or useful for the purpose of impounding,
processing and transporting water to cities and others for
municipal, agricultural, domestic, industrial, oil field flooding,
and mining purposes. The size of the dam and reservoir shall be
determined by the board [Board of Directors], taking into
consideration probable future increases in water requirements, and
the size of the dam shall not be limited by the amount of water
initially authorized by the commission [Texas Water Commission] to
be impounded therein. [No dam or other facilities for impounding
water shall be constructed until the plans therefor are approved by
the Texas Department of Water Resources.]
Sec. 9. The district [Authority] is empowered to acquire
land within or without the boundaries of the district [Authority],
and to construct, lease or otherwise acquire all works, plants and
other facilities necessary or useful for the purpose of diverting,
further impounding or storing water, processing such water and
transporting it to cities and others for agricultural, municipal,
domestic, industrial, oil field flooding, and mining purposes.
Sec. 10. (a) For the purpose of carrying out any power or
authority conferred by this Act the district [Authority] shall have
the right to acquire by condemnation in the manner provided by Title
52, Revised Statutes, as amended, relating to eminent domain:
(1) the fee simple title to land and other property and
easements (including land needed for the reservoir and dam and
flood easements above the probable high water line around any such
reservoirs) within the boundaries of the district [Authority]; and
(2) the fee simple title to land and other property and
easements (except for land, other property, and easements to be
used for a dam or dams or facilities for the impoundment or storage
of water) outside the boundaries of the district [Authority].
(b) The district [Authority] is hereby declared to be a
municipal corporation within the meaning of Article 3268 of said
Title 52, except that the district [Authority] shall not have the
right to so condemn any property which may be owned by any other
political subdivision, city or town; provided, however, that as
against persons, firms and corporations, or receivers or trustees
thereof, who have the power of eminent domain, the fee title may not
be condemned, but the district [Authority] may condemn only an
easement. The amount of and character of interest in land, other
property and easements thus to be acquired shall be determined by
the board [Board of Directors].
Sec. 11. The district [Authority] herein created shall be
and it is hereby empowered to control, store, conserve, protect,
distribute and utilize the storm and flood waters within the area of
the district [Authority] for all useful purposes permitted by law;
also, to carry out flood prevention and control measures within the
district [Authority] and to prevent or aid in preventing damage to
the lands of the district [Authority] and the soil and fertility
thereof; to cooperate with all other districts, departments or
agencies of the State Government, or any agency, representative,
instrumentality or department of the United States Government; and
to receive and accept technical and financial assistance therefrom
in the accomplishment of the [said] purposes described by this
section. The district [said Authority] is further authorized and
empowered to purchase, construct, maintain, or in any other lawful
manner to acquire, provide and develop all works, facilities,
improvements, lands, easements and properties, which may be
necessary or useful in fulfilling the purposes of the district
[Authority] or any of them.
Sec. 12. The district [Authority] is authorized to acquire
water appropriation permits from owners of permits. The district
[Authority] is hereby empowered to lease or acquire rights in and to
storage and storage capacity in any reservoir constructed or to be
constructed by any person, firm, corporation or public agency or
from the United States Government or any of its agencies.
SECTION 2. Sections 13(a), (b), (c), and (d), Chapter 438,
Acts of the 63rd Legislature, Regular Session, 1973, are amended to
read as follows:
(a) The board [Board of Directors of the Authority] shall
have the power to adopt and promulgate all reasonable regulations
to secure, maintain, and preserve the sanitary condition of all
water in and to flow into any reservoir owned by the district,
[Authority] to prevent waste of water or the unauthorized use
thereof, and to regulate residence, hunting, fishing, boating and
camping, and all recreational and business privileges, along or
around any such reservoir, [or any] body of land, or easement owned
by the district [Authority].
(b) The district [Such Authority] may prescribe reasonable
penalties for the breach of any regulation of the district
[Authority], which penalties shall not exceed fines of more than
Two Hundred Dollars ($200.)[, or imprisonment for not more than
thirty (30) days, or may provide both such fine and such
imprisonment]. The penalties hereby authorized shall be in
addition to any other penalties provided by the laws of Texas and
may be enforced by complaints filed in the appropriate court of
jurisdiction, provided, however, that no rule or regulation which
provides a penalty for the violation thereof shall be in effect, as
to enforcement of the penalty, until five (5) days next after the
district [Authority] may have caused a substantive statement of the
particular rule or regulation and the penalty for the violation
thereof to be published, once a week for two (2) consecutive weeks
in the county in which such reservoir is situated, or in any county
in which it is partly situated. The substantive statement so to be
published shall be as condensed as is possible to afford an
intelligent direction of the mind to the act forbidden by the rule
or regulation; one (1) notice may embrace any number of
regulations; there must be embraced in the notice advice that
breach of the particular regulation, or regulations, will subject
the violator to the infliction of a penalty and there also shall be
included in the notice advice that the full text of the regulations
sought to be enforced is on file in the principal office of the
district [Authority], where the same may be read by any interested
person. Five (5) days after the second publication of the notice
hereby required, the advertised regulation shall be in effect, and
ignorance of any such regulation shall not constitute a defense to a
prosecution for the enforcement of a penalty and, the rules and
regulations authorized hereby, after the required publication,
shall judicially be known to the courts and shall be considered of a
nature like unto that of valid penal ordinance of a city of the
state.
(c) Any duly constituted peace officer, provided such
officers meet the Texas Law Officers minimum certification
requirements, shall have the power to make arrests when necessary
to prevent or abate the commission of any offense against the
regulations of the district [Authority], and against the laws of
the State of Texas, when any such offense or threatened offense
occurs upon any land, water or easement owned or controlled by the
district [Authority], or to make such arrest at any place, in case
of an offense involving injury or detriment to any property owned or
controlled by such district [Authority].
(d) Territory may be annexed to the district [Authority],
whether or not contiguous to the district [Authority], in the
following manner:
(1) A petition praying for such annexation signed by
fifty (50) or a majority, whichever number is smaller, of the
resident, qualified voters of the territory or of duly incorporated
cities or towns sought to be annexed shall be filed with the board.
The petition shall describe the territory to be annexed by metes and
bounds, or otherwise, unless such territory is the same as that
contained within the boundaries of such city or town, in which event
it shall be sufficient to state that the territory to be annexed is
that which is contained within the boundaries of such city or town.
(2) If the board [Board of Directors] finds that the
petition complies with and is signed by the number of qualified
persons required by Subdivision (1) of this subsection, that the
annexation would be to the best interest of the territory, city or
town, and the district [Authority], and that the district
[Authority] will be able to supply water, or cause water to be
supplied to the territory, city, or town, it shall adopt a
resolution stating the conditions, if any, under which such
territory, city, or town may be annexed to the district
[Authority], and shall fix a time and place when and where a hearing
shall be held by the board on the question of whether the territory,
city, or town sought to be annexed will be benefited by the
improvements, works, and facilities then owned or operated or
contemplated to be owned or operated by the district [Authority] or
by the other functions of the district [Authority]. Notice of the
adoption of such resolution stating the time and place of such
hearing shall be published one (1) time in a newspaper of general
circulation in the territory, city, or town sought to be annexed at
least ten (10) days prior to the date of such hearing. The notice
shall describe the territory in the same manner in which it is
required or permitted by this Act to be described in the petition.
All persons interested may appear at such hearing and offer
evidence for or against the proposed annexation. Such hearing may
proceed in such order and under such rules as may be prescribed by
said board, and the hearing may be recessed from time to time. If,
at the conclusion of the hearing, the board [Board of Directors]
finds that the property in such territory, city, or town will be
benefited by the present or contemplated improvements, works, or
facilities of the district [Authority], the board [Board of
Directors] shall adopt a resolution making a finding of such
benefit and calling an election in the territory, city, or town
proposed to be annexed stating therein the date of the election, the
place or places of holding the same, the proposition to be voted on,
and appointing a presiding judge for each voting place who shall
appoint the necessary assistant judges and clerks to assist in
holding the election.
Notice of such election shall be given by publishing a
substantial copy of the resolution calling the election one (1)
time in a newspaper of general circulation in the territory sought
to be annexed to the district [Authority] at least ten (10) days
before the date set for the election. Only constitutionally
qualified electors who reside in the territory, city, or town
sought to be annexed shall be qualified to vote in said election.
Returns of the result of said election shall be made to the board.
The board shall canvass the returns of the election and adopt a
resolution declaring the results thereof. If such resolution shows
that a majority of the votes cast are in favor of annexation, the
board shall by resolution annex said territory to the district
[Authority], and such annexation shall thereafter be incontestable
except in the manner and within the time for contesting the
elections under the Texas Election Code, as amended.
(3) The board [Board of Directors], in calling an
election on the proposition for annexation of territory, city, or
town, may include as a part of the same proposition or a separate
proposition for the assumption of its part of the tax-supported
bonds of the district [Authority] then outstanding and those
theretofore voted but not yet sold, and for the levy of an ad
valorem tax on taxable property in said territory along with the tax
in the rest of the district [Authority] for the payment thereof and
the levying of maintenance taxes permitted by Section 27 of this
Act, in which event the voting shall be restricted to
constitutionally qualified electors. If such election fails, the
annexed territory, city, or town shall be excluded from the
district [Authority].
SECTION 3. Sections 14, 15, 16, 17, 18, and 19, Chapter 438,
Acts of the 63rd Legislature, Regular Session, 1973, are amended to
read as follows:
Sec. 14. The district [Authority] is authorized to
establish or otherwise provide for public parks and recreation
facilities, and to acquire land for such purposes within the
district [Authority].
Sec. 15. In the event that the district [Authority], in the
exercise of the power of eminent domain or power of relocation, or
any other power granted hereunder, makes necessary the relocation,
raising, rerouting or changing the grade of, or altering the
construction of any highway, railroad, electric transmission line,
telephone or telegraph properties and facilities, or pipeline, all
such necessary relocation, raising, rerouting, changing of grade or
alteration of construction shall be accomplished at the sole
expense of the district [Authority].
Sec. 16. It shall not be necessary for the board [Board of
Directors] to call a confirmation election or to hold a hearing on
the exclusion of lands or a hearing on the adoption of a plan of
taxation, but the ad valorem plan of taxation shall be used by the
district [Authority].
Sec. 17. (a) All powers of the district [Authority] shall
be exercised by the board. Each director of the board [a Board of
Directors (sometimes herein referred to as the "Board"), each of
whom] shall serve staggered, two-year terms that expire on December
31 of each year. [for a term of two (2) years except for the
directors appointed by this Act. The following directors are hereby
appointed:
[DIRECTOR RESIDENCE TERM EXPIRING [DIRECTOR RESIDENCE TERM EXPIRING
[DIRECTOR RESIDENCE TERM EXPIRING
[Dee Jackson Spearman, Hansford County, Texas December 31, 1973 [Dee Jackson Spearman, Hansford County, Texas December 31, 1973
[Dee Jackson Spearman, Hansford County, Texas December 31, 1973
[N. F. (Gus) Renner Spearman, Hansford County, Texas December 31, 1974 [N. F. (Gus) Renner Spearman, Hansford County, Texas December 31, 1974
[N. F. (Gus) Renner Spearman, Hansford County, Texas December 31, 1974
[Robert V. Skinner Spearman, Hansford County, Texas December 31, 1973 [Robert V. Skinner Spearman, Hansford County, Texas December 31, 1973
[Robert V. Skinner Spearman, Hansford County, Texas December 31, 1973
[Bill Logsdon Gruver, Hansford County, Texas December 31, 1974 [Bill Logsdon Gruver, Hansford County, Texas December 31, 1974
[Bill Logsdon Gruver, Hansford County, Texas December 31, 1974
[Bob Urban Perryton, Ochiltree County, Texas December 31, 1973 [Bob Urban Perryton, Ochiltree County, Texas December 31, 1973
[Bob Urban Perryton, Ochiltree County, Texas December 31, 1973
[Delbert Timmons Perryton, Ochiltree County, Texas December 31, 1974 [Delbert Timmons Perryton, Ochiltree County, Texas December 31, 1974
[Delbert Timmons Perryton, Ochiltree County, Texas December 31, 1974
[Jerry Garrison Perryton, Ochiltree County, Texas December 31, 1973 [Jerry Garrison Perryton, Ochiltree County, Texas December 31, 1973
[Jerry Garrison Perryton, Ochiltree County, Texas December 31, 1973
[Robert D. Lemon Perryton, Ochiltree County, Texas December 31, 1974] [Robert D. Lemon Perryton, Ochiltree County, Texas December 31, 1974]
[Robert D. Lemon Perryton, Ochiltree County, Texas December 31, 1974]
(b) In [December of 1973 and in] December of each year,
[hereafter] the Commissioners Court of each county contained in the
district, except for Hutchinson County, and the city council of the
City of Stinnett [Authority] shall appoint a director or directors
[from such county] whose term or terms are about to expire. Any
vacancy shall be filled for the unexpired term by the governing body
of the appropriate county or city. Four (4) directors [members of
the Board of Directors] shall be appointed by the Commissioners
Court of each county contained in the district, except for
Hutchinson County, and one director shall be appointed by the city
council of the City of Stinnett. Each [Authority, and each]
director shall reside in the county from which the director [he] is
appointed.
(c) Each director shall serve for the director's [his] term
of office as herein provided, and thereafter until the director's
[his] successor shall be appointed and qualified. No person shall
be appointed a director unless the person [he] resides in and owns
taxable property in the county or city from which the person [he] is
appointed. No member of a governing body of a county or the City of
Stinnett, and no employee of a county or the City of Stinnett shall
be appointed as director. Such directors shall subscribe the
Constitutional oath of office, and each shall give bond for the
faithful performance of the director's [his] duties in the amount
of Five Thousand Dollars ($5,000.), the cost of which shall be paid
by the district [Authority]. A majority shall constitute a quorum.
If any director moves from the county or city from which the
director [he] is appointed or otherwise ceases to be a director, the
Commissioners Court of such county or the city council of the City
of Stinnett, as appropriate, shall appoint a director to succeed in
the position [him,] for the unexpired term.
(d) Unless the board by resolution increases the fee to an
amount authorized by Section 49.060, Water Code, each [Each]
director shall receive a fee of not to exceed Twenty-Five Dollars
($25.) for attending each meeting of the board [Board], provided
that no more than Fifty Dollars ($50.) shall be paid to any director
for meetings held in any one (1) calendar month. Each director
shall also be entitled to receive not to exceed Twenty-Five Dollars
($25.) per day devoted to the business of the district [Authority]
and to reimbursement for actual expenses incurred in attending to
district [Authority] business provided that such service and
expense are expressly approved by the board [Board].
Sec. 18. The board [Board of Directors] shall elect from its
number a president and a vice president of the district
[Authority], and such other officers as in the judgment of the board
[Board] are necessary. The president shall be the chief executive
officer of the district [Authority] and the presiding officer of
the board [Board], and shall have the same right to vote as any
other director. The vice president shall perform all duties and
exercise all powers conferred by this Act upon the president when
the president is absent or fails or declines to act except the
president's right to vote. The board [Board] shall also appoint a
secretary and a treasurer who may or may not be members of the board
[Board], and it may combine those offices. The treasurer shall give
bond in such amount as may be required by the board [Board of
Directors]. The condition of such bond shall be that the treasurer
[he] will faithfully account for all money which shall come into the
treasurer's [his] custody as treasurer of the district [Authority],
and the board [Board] may adopt a seal for the district [Authority].
Sec. 19. The board [Board of Directors], from time to time,
shall be authorized to make or cause to be made surveys and
engineering investigations for the information of the district
[Authority] to facilitate the accomplishment of the purposes for
which the district [Authority] is created; and may employ a general
manager, attorneys, accountants, engineers, or other technical or
nontechnical employees or assistants; fix the amount and manner of
their compensation; and may provide for the payment of expenditures
deemed essential to the proper maintenance of the district
[Authority] and its affairs. The power to employ and discharge
employees may be conferred upon the general manager.
SECTION 4. Sections 20(a), (b), (d), (e), (f), (g), (h), and
(i), Chapter 438, Acts of the 63rd Legislature, Regular Session,
1973, are amended to read as follows:
(a) For the purpose of providing a source of water supply
for cities and other users for agricultural, municipal, domestic,
industrial, oil field flooding, and mining purposes, as authorized
by this Act, and for the purpose of carrying out any other power or
authority conferred by this Act, the district [Authority] is
empowered to issue its negotiable bonds to be payable from revenues
or taxes or both revenues and taxes of the district [Authority] as
are pledged by resolution of the board [Board of Directors].
Pending the issuance of definitive bonds the board [Board] may
authorize the delivery of negotiable interim bonds or notes,
eligible for exchange or substitution by use of the definitive
bonds.
(b) Such bonds shall be authorized by resolution of the
board [Board of Directors] and shall be issued in the name of the
district [Authority], signed by the president or vice president,
attested by the secretary and shall bear the seal of the district
[Authority]. It is provided, however, that the signatures of the
president or of the secretary or of both may be printed or
lithographed on the bonds if authorized by the board [Board of
Directors], and that the seal of the district [Authority] may be
impressed on the bonds or may be printed or lithographed thereon.
The bonds shall mature serially or otherwise in not to exceed forty
(40) years and may be sold at a price and under terms determined by
the board [Board of Directors] to be the most advantageous
reasonably obtainable[, provided that the interest cost to the
Authority, including the discount, if any, shall bear interest at
any rate per annum permitted by the Constitution and laws of the
State as shall be determined by the Board of Directors,] and within
the discretion of the board [Board] may be made callable prior to
maturity at such times and prices as may be prescribed in the
resolution authorizing the bonds, and may be made registrable as to
principal or as to both principal and interest.
(d) The bonds may be secured by a pledge of all or part of
the net revenue of the district [Authority], or by the net revenues
of any one (1) or more contracts theretofore or thereafter made or
other revenue or income specified by resolution of the board [Board
of Directors] or in the trust indenture. Any such pledge may
reserve the right, under conditions therein specified, to issue
additional bonds which will be on a parity with or subordinate to
the bonds then being issued. The term "net revenues" as used in
this Section shall mean the gross revenues and income of the
district [Authority] from all sources after deduction of the amount
necessary to pay the cost of maintaining and operating the district
[Authority] and its properties.
(e) The district [Authority] is also empowered to issue
bonds payable from ad valorem taxes to be levied on all taxable
property therein, or to issue bonds secured by and payable from both
such taxes and the revenues of the district [Authority]. Where
bonds are issued payable wholly or partially from ad valorem taxes,
it shall be the duty of the board [Board of Directors] to levy a tax
sufficient to pay the bonds and the interest thereon as such bonds
and interest become due without limit as to the rate or the amount,
but the rate of the tax for any year may be fixed after giving
consideration to the money received from the pledged revenues which
may be available for payment of principal and interest to the extent
and in the manner permitted by the resolution authorizing the
issuance of the bonds.
(f) Where bonds payable wholly from revenues are issued, it
shall be the duty of the board [Board of Directors] to fix, and from
time to time to revise, the rates of compensation for water sold and
services rendered by the district [Authority] which will be
sufficient to pay the expense of operating and maintaining the
facilities of the district [Authority] and to pay the bonds as they
mature and the interest as it accrues and to maintain the reserve
and other funds as provided in the resolution authorizing the
bonds. Where bonds payable partially from revenues are issued it
shall be the duty of the board [Board] to fix, and from time to time
to revise, the rate of compensation for water sold and services
rendered by the district [Authority] which will be sufficient to
assure compliance with the resolution authorizing the bonds.
(g) From the proceeds from the sale of the bonds, the
district [Authority] may set aside an amount for the payment of
interest expected to accrue during construction and a reserve
interest and sinking fund, and such provision may be made in the
resolution authorizing the bonds. Proceeds from the sale of the
bonds may also be used for the payment of all expenses necessarily
incurred in accomplishing the purpose for which this district
[Authority] is created, including expenses of issuing and selling
the bonds. The proceeds from the sale of the bonds may be
temporarily invested in direct obligations of the United States
Government maturing in not more than one (1) year from the date of
investment.
(h) In the event of a default or a threatened default in the
payment of principal or of interest on bonds payable wholly or
partially from revenues, any court of competent jurisdiction may,
upon petition of the holders of outstanding bonds, appoint a
receiver with authority to collect and receive all income of the
district [Authority] except taxes, employ and discharge agents and
employees of the district [Authority], take charge of funds on hand
(except funds received from taxes unless commingled) and manage the
proprietary affairs of the district [Attorney] without consent or
hindrance by the directors [Directors]. Such receiver may also be
authorized to sell or make contracts for the sale of water or renew
such contracts with the approval of the court appointing him. The
court may vest the receiver with such other powers and duties as the
court may find necessary for the protection of the holders of the
bonds. The resolution authorizing the issuance of the bonds or the
trust indenture securing the bonds [them] may limit or qualify the
rights of the holders of less than all of the outstanding bonds
payable from the same source to institute or prosecute any
litigation affecting the district's [Authority's] property or
income.
(i) Before the district [Authority] shall issue any bonds
for improvements authorized herein, it shall secure prior approval
from the commission [Texas Water Rights Commission] in the manner
provided by Section 51.421, Texas Water Code.
SECTION 5. Sections 21 and 22, Chapter 438, Acts of the 63rd
Legislature, Regular Session, 1973, are amended to read as follows:
Sec. 21. The district [Authority] is authorized to issue
refunding bonds for the purpose of refunding any outstanding bonds
authorized by this Act and interest thereon. Such refunding bonds
may be issued to refund more than one (1) series of outstanding
bonds and combine the pledges for the outstanding bonds for the
security of the refunding bonds, and may be secured by other or
additional revenues and mortgage liens. The provisions of this law
with reference to the issuance by the district [Authority] of other
bonds, their security, and their approval by the Attorney General
and the remedies of the holders shall be applicable to refunding
bonds. Refunding bonds shall be registered by the Comptroller upon
surrender and cancellation of the bonds to be refunded, but in lieu
thereof, the resolution authorizing their issuance may provide that
they shall be sold and the proceeds thereof deposited in the bank
where the original bonds are payable, in which case the refunding
bonds may be issued in an amount sufficient to pay the principal of
and the interest on the original bonds to their option date or
maturity date, and the Comptroller shall register them without
concurrent surrender and cancellation of the original bonds.
Sec. 22. Any bonds (including refunding bonds) authorized
by this law, not payable wholly from ad valorem taxes, may be
additionally secured by a trust indenture under which the Trustee
may be a bank having trust powers situated either within or outside
of the State of Texas. Such bonds, within the discretion of the
board [Board of Directors], may be additionally secured by a deed of
trust or mortgage lien upon physical properties of the district
[Authority] and all franchises, easements, water rights and
appropriation permits, leases and contracts and all rights
appurtenant to such properties vesting in the trustee power to sell
the properties for the payment of the indebtedness, power to
operate the properties and all other powers and authority for the
further security of the bonds. Such trust indenture, regardless of
the existence of the deed of trust or mortgage lien on the
properties may contain any provisions prescribed by the board
[Board of Directors] for the security of the bonds and the
preservation of the trust estate, and may make provision for
amendment or modification thereof and the issuance of bonds to
replace lost or mutilated bonds, and may condition the right to
expend district [Authority] money or sell district [Authority]
property upon approval of a registered professional engineer
selected as provided therein, and may make provision for the
investment of funds of the district [Authority]. Any purchaser
under a sale under the deed of trust lien, where one is given, shall
be the absolute owner of the properties, facilities and rights so
purchased and shall have the right to maintain and operate the same.
SECTION 6. Sections 23(a), (b), and (c), Chapter 438, Acts
of the 63rd Legislature, Regular Session, 1973, are amended to read
as follows:
(a) No bonds payable wholly or partially from ad valorem
taxes (except refunding bonds) shall be issued unless authorized by
a majority vote of the constitutionally qualified electors voting
at such election. [No territory shall be detached from the
Authority after the issuance of bonds which are payable from
revenues or taxes or both.] Bonds not payable wholly or partially
from ad valorem taxes may be issued without an election.
(b) Such election may be called by the board [Board of
Directors] without a petition. The resolution calling the election
shall specify the time and places of holding the same, the purpose
for which the bonds are to be issued, the maximum amount thereof,
the maximum maturity thereof, the form of the ballot, and the
presiding judge for each voting place. The presiding judge serving
at each voting place shall appoint one (1) assistant judge and at
least two (2) clerks to assist in holding such election. Notice of
the election shall be given by publishing a substantial copy
thereof in one (1) newspaper published in each city contained in the
district [Authority] for two (2) consecutive weeks. The first
publication shall be at least twenty-one (21) days prior to the
election. In any city in which no newspaper is published, notice
shall be given by posting a copy of the resolution in three (3)
public places.
(c) The returns of the election shall be made to and
canvassed by the board [Board of Directors of the Authority].
SECTION 7. Sections 24, 25, 26, and 27, Chapter 438, Acts of
the 63rd Legislature, Regular Session, 1973, are amended to read as
follows:
Sec. 24. After any bonds (including refunding bonds) are
authorized by the district [Authority], such bonds and the record
relating to their issuance shall be submitted to the Attorney
General for [his] examination as to the validity thereof. Where
such bonds recite that they are secured by a pledge of the proceeds
of a contract theretofore made between the district [Authority] and
any city or other governmental agency, authority or district, a
copy of such contract and the proceedings of the city or other
governmental agency, authority or district authorizing such
contract shall also be submitted to the Attorney General. If such
bonds have been authorized and if such contracts have been made in
accordance with the Constitution and laws of the State of Texas the
Attorney General [he] shall approve the bonds and such contracts
and the bonds then shall be registered by the Comptroller of Public
Accounts. Thereafter the bonds, and the contracts, if any, shall be
valid and binding and shall be incontestable for any cause.
Sec. 25. All bonds of the district [Authority] shall be and
are hereby declared to be legal and authorized investments for
banks, savings banks, trust companies, building and loan
association, savings and loan association, insurance companies,
fiduciaries, trustees, guardians, and for the sinking fund of
cities, towns, villages, counties, school districts, or other
political corporations or subdivisions of the State of Texas. Such
bonds shall be eligible to secure the deposit of any and all public
funds of the State of Texas, and any and all public funds of cities,
towns, villages, counties, school districts, or other political
corporations or subdivision of the State of Texas; and such bonds
shall be lawful and sufficient security for said deposits to the
extent of their value, when accompanied by all unmatured coupons
appurtenant thereto.
Sec. 26. The accomplishment of the purposes stated in this
Act is for the benefit of the people of this state and for the
improvement of their properties and industries, and the district
[Authority], in carrying out the purposes of this Act will be
performing an essential public function under the Constitution.
The district [Authority] shall not be required to pay any tax or
assessment on the project or any part thereof, and the bonds issued
hereunder and their transfer and the income therefrom, including
the profits made on the sale thereof, shall at all times be free
from taxation within this state.
Sec. 27. The district [Authority] may upon a favorable
majority vote of the qualified property taxpaying electors of the
district [Authority,] voting at an election held within the
boundaries of the district [Authority] for that purpose, levy,
assess and collect annual taxes to provide funds necessary to
construct or acquire, maintain and operate dams, works, plants and
facilities deemed essential or beneficial to the district
[Authority] and its purposes, and also when so authorized may levy,
assess and collect annual taxes as provided by the Tax Code to
provide funds adequate to defray the cost of the maintenance,
operation and administration of the district [Authority];
provided, however, that the district [Authority] shall not have the
power to levy or collect a tax for the maintenance, operation, and
administration of the district [Authority] which exceeds fifty
cents (50ยข) on the One Hundred Dollars ($100) assessed valuation on
the property subject to taxation. Elections for the levy of such
taxes shall be ordered by the board [Board of Directors] and shall
be held and conducted in the manner provided by this law relating to
elections for the authorization of bonds. The board [Board of
Directors] shall designate such polling places as they deem fitting
and proper. [All taxes levied by the Authority for any purpose
shall constitute a lien on the property against which levied and
shall not bar the enforcement or collection thereof.]
SECTION 8. Sections 28(a), (b), (d), (e), (f), and (h),
Chapter 438, Acts of the 63rd Legislature, Regular Session, 1973,
are amended to read as follows:
(a) The tax rolls of the counties situated within the
district [Authority,] are hereby adopted and shall constitute the
tax rolls of the district [Authority,] until assessment and tax
rolls shall be made by the district [Authority].
(b) If the district [Authority] issues and delivers bonds
which are payable wholly or partially from ad valorem taxes, or
votes the taxes as provided in Section 27 [of the Authority's Act],
the board annually shall cause the taxable property in the district
[Authority] to be rendered and assessed for ad valorem taxation,
and the value of such taxable property to be equalized, and the ad
valorem taxes in the district [Authority] to be collected, in
accordance with any of the methods set forth in this section, and
any method adopted shall remain in effect until changed by the
board.
(d) The laws of this State applicable to counties may be
adopted and shall be used to the extent pertinent and practicable,
provided that the board shall have the authority to act as its own
board of equalization or to appoint three resident, qualified
electors of the district [Authority] who own taxable property
therein to act as the board of equalization of the district
[Authority], and in either case the board of equalization shall
qualify and perform the duties prescribed by law for county
commissioners courts acting as boards of equalization.
(e) The board shall be authorized to have the taxable
property in the district [Authority] assessed, its values
equalized, and/or its taxes collected, in whole or in part, by the
tax assessors, board of equalization, and/or tax collectors,
respectively, of any county, city, taxing district, or other
governmental subdivision in which all or any part of the district
[Authority] is located; and such property may be assessed and the
values thereof equalized on the same basis or a different basis than
that used by any such governmental subdivision. Such property
shall be assessed, the values thereof equalized, and such taxes
collected in the manner and for such compensation as shall be agreed
on between the appropriate parties, and the functions thus assumed
by the officials of any such governmental subdivision shall be
additional duties pertaining to their offices, respectively. The
ad valorem tax law applicable to each such governmental subdivision
shall apply to its officials in carrying out such functions for the
district [Authority].
(f) It is specifically provided, however, that under any
method used all taxable property within the district [Authority]
shall be assessed on the same basis, and the values thereof shall be
equalized by only one board of equalization, in an equal and uniform
manner, as required by the Texas Constitution. If the board desires
that taxable property shall be assessed and taxes collected by the
tax assessors and/or collectors of more than one governmental
subdivision, the board shall either act as its own board of
equalization or appoint three resident, qualified electors of the
district [Authority] who own taxable property therein to act as the
board of equalization, and in either case the board of equalization
shall qualify and perform the duties prescribed by law for county
commissioners courts acting as boards of equalization.
(h) If the district [Authority] issues and delivers bonds
payable wholly or partially from ad valorem taxes, the board
[Board] shall levy and cause to be assessed and collected ad valorem
taxes sufficient to pay the interest on and principal of said bonds,
without limit as to the rate or the amount[, after giving
consideration to any revenues that may be pledged to the payment of
bonds].
SECTION 9. Chapter 438, Acts of the 63rd Legislature,
Regular Session, 1973, is amended by amending Section 29 and adding
Sections 1B, 3A, 13A, 19A, 19B, 19C, 19D, 19E, 19F, and 19G to read
as follows:
Sec. 29. (a) The board [Board of Directors] shall designate
one (1) or more banks within the district [Authority] to serve as
depository for the funds of the district [Authority]. All funds of
the district [Authority] shall be deposited in such depository bank
or banks except that funds pledged to pay bonds may be deposited
with the trustee bank named in the trust agreement, and except that
funds shall be remitted to the bank of payment for the payment of
principal of and interest on bonds. To the extent that funds in the
depository banks and the trustee bank are not insured by the
F.D.I.C. they shall be secured in the manner provided by law for the
security of county funds.
(b) Before designating a depository bank or banks, the board
[Board of Directors] shall issue a notice stating the time and place
when and where the board [Board] will meet for such purpose and
inviting the banks in the district [Authority] to submit
applications to be designated depositories. The term of service
for depositories shall be prescribed by the board [Board]. Such
notice shall be published one (1) time in a newspaper or newspapers
published in the district [Authority] and specified by the board
[Board].
(c) At the time mentioned in the notice, the board [Board]
shall consider the applications and the management and condition of
the banks filing them, and shall designate as depositories the bank
or banks which offer the most favorable terms and conditions for the
handling of the funds of the district [Authority] and which the
board [Board] finds have proper management and are in condition to
warrant handling of district [Authority] funds. Membership on the
board [Board of Directors] of an officer or director of a bank shall
not disqualify such bank from being designated as depository.
(d) If no applications are received by the time stated in
the notice, the board [Board] shall designate some bank or banks
within or without the district [Authority] upon such terms and
conditions as it may find advantageous to the district [Authority].
Sec. 1B. In this Act:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Director" means a member of the board.
(4) "District" means the Palo Duro Water District.
(5) "Member entity" means a county or municipality
that is a member of the district.
Sec. 3A. The district may:
(1) lease the hunting rights on property owned by the
district;
(2) develop, manage, or lease property owned by the
district for any recreational purpose; and
(3) lease property owned by the district to a person
seeking to develop renewable energy resources.
Sec. 13A. (a) A county or municipality may withdraw from
the district or the district may dissolve according to this
section.
(b) In order to withdraw from the district or to dissolve
the district, the governing body of a member entity must issue an
order or pass a resolution declaring the intent to withdraw from or
dissolve the district. The order or resolution must state:
(1) the intention to either withdraw from the district
or call for the dissolution of the district; and
(2) the reasons supporting the withdrawal or
dissolution.
(c) Not later than the 30th day after the date the district
receives an order or resolution under Subsection (b), the district
shall hold a public hearing on the matter described by the order or
resolution.
(d) In the event of a proposed withdrawal or dissolution
under this section, the member entities must reach a financial
agreement that:
(1) for a withdrawal of a county or municipality from
the district, provides for sufficient revenue for maintaining the
Palo Duro Reservoir and the dam that impounds the water in the
reservoir; or
(2) for a dissolution of the district, provides for
the transfer of:
(A) the ownership rights of the dam to an entity
that assumes responsibility for the maintenance of the dam and
liability for actions related to the dam;
(B) all assets and liabilities of the district to
other entities; and
(C) the responsibility for the continued
provision of services, if the district provides services.
(e) The board must provide an opportunity for the public to
comment on the financial agreement described by Subsection (d)
before the board votes as described by Subsection (f). The period
for public comment must last not less than 10 days.
(f) After consideration of the public comments submitted
under Subsection (e), the board shall vote on the issue described by
the order or resolution under Subsection (b). The board may proceed
with the withdrawal or dissolution only if two-thirds of all of the
members of the board vote in favor of withdrawal or dissolution.
(g) If the board votes in favor of withdrawal or dissolution
as provided by Subsection (f), the governing body of each member
entity shall vote on the matter of withdrawal or dissolution.
(h) A withdrawal or dissolution authorized under this
section does not take effect until:
(1) the governing body of each county and municipality
has voted in favor of withdrawal or dissolution;
(2) all conditions specified in the financial
agreement described by Subsection (d) have been met; and
(3) all actions described in the financial agreement
described by Subsection (d) have been completed.
Sec. 19A. The board shall develop and implement policies
that provide the public with a reasonable opportunity to appear
before the board and to speak on any agenda item at board meetings.
Sec. 19B. A director who has a financial interest in a
contract under consideration by the district for the purchase,
sale, lease, rental, or supply of property, including supplies,
materials, and equipment, or the construction of facilities, shall
disclose that fact to the other members of the board and may not
vote on or participate in discussions during board meetings on the
acceptance of the contract. A financial interest of a director does
not affect the validity of a contract if disclosure is made and the
director with the financial interest does not vote on the question
of entering into the contract.
Sec. 19C. Not earlier than the 10th day after the date a
director receives written notice of a charge against the director,
and after an opportunity to be heard in person or through the
appearance of counsel at a public hearing on the matter of the
charge described by the notice, the board may remove a director for:
(1) inefficiency;
(2) neglect of duty; or
(3) misconduct in office.
Sec. 19D. (a) A person who is appointed to and qualifies
for office as a director may not vote, deliberate, or be counted as
a director in attendance at a meeting of the board until the person
completes a training program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the law governing district operations;
(2) the programs, functions, rules, and budget of the
district;
(3) the scope of and limitations on the rulemaking
authority of the district;
(4) the results of the most recent formal audit of the
district;
(5) the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
interest; and
(B) other laws applicable to members of the
governing body of a water district in performing their duties; and
(6) any applicable ethics policies adopted by the
board or the Texas Ethics Commission.
(c) A person appointed to the board is entitled to
reimbursement for the travel expenses incurred in attending the
training program regardless of whether the attendance at the
program occurs before or after the person qualifies for office.
(d) The board shall create a training manual that includes
the information required by Subsection (b). The board shall
distribute a copy of the training manual annually to each director.
On receipt of the training manual, each director shall sign a
statement acknowledging receipt of the training manual.
Sec. 19E. The board shall develop and implement policies
that clearly separate the policymaking responsibilities of the
board and the management responsibilities of the general manager
and staff of the district.
Sec. 19F. (a) The district shall maintain a system to
promptly and efficiently act on complaints filed with the district.
The district shall maintain information about parties to the
complaint, the subject matter of the complaint, a summary of the
results of the review or investigation of the complaint, and its
disposition.
(b) The district shall make information available
describing its procedures for complaint investigation and
resolution.
(c) The district shall periodically notify the complaint
parties of the status of the complaint until final disposition.
Sec. 19G. (a) The district shall develop a policy to
encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of district rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the district's
jurisdiction.
(b) The district's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The district shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
SECTION 10. Section 325.025(b), Government Code, is amended
to read as follows:
(b) This section applies to the:
(1) Angelina and Neches River Authority;
(2) Bandera County River Authority and Groundwater
District;
(3) Brazos River Authority;
(4) Central Colorado River Authority;
(5) Guadalupe-Blanco River Authority;
(6) Lavaca-Navidad River Authority;
(7) Lower Colorado River Authority;
(8) Lower Neches Valley Authority;
(9) Nueces River Authority;
(10) [Palo Duro River Authority of Texas;
[(11)] Red River Authority of Texas;
(11) [(12)] Sabine River Authority of Texas;
(12) [(13)] San Antonio River Authority;
(13) [(14)] San Jacinto River Authority;
(14) [(15)] Sulphur River Basin Authority;
(15) [(16)] Trinity River Authority of Texas;
(16) [(17)] Upper Colorado River Authority; and
(17) [(18)] Upper Guadalupe River Authority.
SECTION 11. (a) The following sections of Chapter 438, Acts
of the 63rd Legislature, Regular Session, 1973, are repealed:
(1) Section 1A;
(2) Section 2A;
(3) Section 2B;
(4) Section 4;
(5) Section 13(e);
(6) Section 28(i); and
(7) Section 30.
(b) The following sections are repealed:
(1) Section 9, Chapter 115, Acts of the 64th
Legislature, Regular Session, 1975;
(2) Section 6, Chapter 17, Acts of the 68th
Legislature, Regular Session, 1983; and
(3) Section 4, Chapter 651, Acts of the 70th
Legislature, Regular Session, 1987.
SECTION 12. (a) Notwithstanding Section 19D(a), Chapter
438, Acts of the 63rd Legislature, Regular Session, 1973, as added
by this Act, a person serving on the board of directors of the Palo
Duro Water District, as renamed by this Act, may vote, deliberate,
and be counted as a director in attendance at a meeting of the board
until December 1, 2017.
(b) This section expires January 1, 2018.
SECTION 13. (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 14. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1920 was passed by the House on May 2,
2017, by the following vote: Yeas 143, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1920 on May 26, 2017, by the following vote: Yeas 146, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1920 was passed by the Senate, with
amendments, on May 24, 2017, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor
[DIRECTOR RESIDENCE TERM EXPIRING
[Dee Jackson Spearman, Hansford County, Texas December 31, 1973
[N. F. (Gus) Renner Spearman, Hansford County, Texas December 31, 1974
[Robert V. Skinner Spearman, Hansford County, Texas December 31, 1973
[Bill Logsdon Gruver, Hansford County, Texas December 31, 1974
[Bob Urban Perryton, Ochiltree County, Texas December 31, 1973
[Delbert Timmons Perryton, Ochiltree County, Texas December 31, 1974
[Jerry Garrison Perryton, Ochiltree County, Texas December 31, 1973
[Robert D. Lemon Perryton, Ochiltree County, Texas December 31, 1974]