Texas 2021 87th Regular

Texas House Bill HB3530 Enrolled / Bill

Filed 05/30/2021

                    H.B. No. 3530


 AN ACT
 relating to the nonsubstantive revision of certain local laws
 concerning water and wastewater special districts, including a
 conforming amendment.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. NONSUBSTANTIVE REVISION OF LOCAL LAWS
 SECTION 1.01.  LEVEE IMPROVEMENT DISTRICT. Subtitle E,
 Title 6, Special District Local Laws Code, is amended by adding
 Chapter 7817 to read as follows:
 CHAPTER 7817. DENTON COUNTY LEVEE IMPROVEMENT DISTRICT NO. 1
 OF DENTON AND DALLAS COUNTIES, TEXAS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 7817.0101.  DEFINITIONS
 Sec. 7817.0102.  NATURE OF DISTRICT
 Sec. 7817.0103.  TERRITORY
 Sec. 7817.0104.  ANNEXATION OF TERRITORY
 Sec. 7817.0105.  APPLICABILITY OF OTHER LAW
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 7817.0201.  AUTHORITY TO UNDERTAKE IMPROVEMENT
 PROJECTS OR SERVICES
 Sec. 7817.0202.  COMPACTED FILL AUTHORITY
 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
 Sec. 7817.0301.  ASSESSMENTS; LIENS FOR ASSESSMENTS
 Sec. 7817.0302.  AUTHORITY TO IMPOSE SPECIAL
 ASSESSMENTS FOR CERTAIN IMPROVEMENT
 PROJECTS OR SERVICES
 Sec. 7817.0303.  PETITION REQUIRED FOR FINANCING
 IMPROVEMENT PROJECTS OR SERVICES
 THROUGH ASSESSMENTS
 Sec. 7817.0304.  IMPACT FEE AND ASSESSMENT EXEMPTIONS
 Sec. 7817.0305.  BONDS AND OTHER OBLIGATIONS
 CHAPTER 7817. DENTON COUNTY LEVEE IMPROVEMENT DISTRICT NO. 1
 OF DENTON AND DALLAS COUNTIES, TEXAS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 7817.0101.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "District" means the Denton County Levee
 Improvement District No. 1 of Denton and Dallas Counties, Texas.
 (Acts 69th Leg., R.S., Ch. 473, Sec. 1.)
 Sec. 7817.0102.  NATURE OF DISTRICT. The district is:
 (1)  a levee improvement district created under and
 essential to accomplish the purposes of Section 59, Article XVI,
 Texas Constitution; and
 (2)  a political subdivision of this state. (Acts 69th
 Leg., R.S., Ch. 473, Sec. 3.)
 Sec. 7817.0103.  TERRITORY. The district boundaries form a
 closure. (Acts 69th Leg., R.S., Ch. 473, Sec. 2 (part).)
 Sec. 7817.0104.  ANNEXATION OF TERRITORY. (a) The district
 may annex any territory the owner of which petitions for annexation
 by the method prescribed by Section 49.301, Water Code.
 (b)  At least 30 days before acting on a petition for
 annexation, the district shall notify all municipalities within
 whose boundaries the district or the land described in the petition
 is located. The notification must:
 (1)  be in writing;
 (2)  specify the time and place of the meeting to
 consider the petition;
 (3)  invite the municipality to appear at the meeting;
 and
 (4)  include a copy of the petition.
 (c)  Notwithstanding any other provision of this chapter,
 the district may annex only territory with a boundary contiguous to
 a district boundary. (Acts 69th Leg., R.S., Ch. 473, Sec. 5.)
 Sec. 7817.0105.  APPLICABILITY OF OTHER LAW. Chapters 49
 and 57, Water Code, apply to the district except to the extent this
 chapter constitutes a modification of general law. (Acts 69th
 Leg., R.S., Ch. 473, Sec. 6.)
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 7817.0201.  AUTHORITY TO UNDERTAKE IMPROVEMENT
 PROJECTS OR SERVICES. (a) The board may undertake an improvement
 project or service that confers a special benefit on all or a
 definable part of the district.
 (b)  As needed to restore, preserve, or enhance the scenic
 and aesthetic beauty of an area in the district, the district may
 include in the improvement project or service the acquisition,
 construction, or financing of:
 (1)  a drainage facility;
 (2)  a hiking and cycling trail;
 (3)  a pedestrian walkway along or across a street, at
 grade or above or below the surface;
 (4)  landscaping; and
 (5)  other development. (Acts 69th Leg., R.S., Ch.
 473, Secs. 6A(a), (c).)
 Sec. 7817.0202.  COMPACTED FILL AUTHORITY. The district may
 include compacted fill in the district's reclamation plan and may
 spend money and issue bonds to the full extent otherwise authorized
 by Chapters 49 and 57, Water Code, for payment of compacted fill.
 (Acts 69th Leg., R.S., Ch. 473, Sec. 4.)
 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
 Sec. 7817.0301.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
 The board by resolution may impose an assessment for any purpose
 authorized by this chapter.
 (b)  An assessment, including an assessment resulting from
 an addition to or correction of the assessment roll by the district,
 a reassessment, penalties and interest on an assessment or
 reassessment, an expense of collection, and reasonable attorney's
 fees incurred by the district are:
 (1)  a first and prior lien against the property
 assessed;
 (2)  superior to any other lien or claim other than a
 lien or claim for county, school district, or municipal ad valorem
 taxes; and
 (3)  the personal liability of and a charge against the
 property owners even if the owners are not named in the assessment
 proceedings.
 (c)  The lien is effective from the date of the board's
 resolution imposing the assessment until the date the assessment is
 paid. The board may enforce the lien in the same manner that the
 board may enforce an ad valorem tax lien against real property.
 (Acts 69th Leg., R.S., Ch. 473, Sec. 6C.)
 Sec. 7817.0302.  AUTHORITY TO IMPOSE SPECIAL ASSESSMENTS FOR
 CERTAIN IMPROVEMENT PROJECTS OR SERVICES. (a) The board may impose
 a special assessment on property in the district based on the
 benefit conferred by an improvement project or service under
 Section 7817.0201 to pay all or part of the cost of the project or
 service.
 (b)  Sections 375.111 through 375.124, Local Government
 Code, apply to financing an improvement project or service under
 Section 7817.0201. (Acts 69th Leg., R.S., Ch. 473, Secs. 6A(b),
 (d).)
 Sec. 7817.0303.  PETITION REQUIRED FOR FINANCING
 IMPROVEMENT PROJECTS OR SERVICES THROUGH ASSESSMENTS. (a) The
 board may not finance an improvement project or service through an
 assessment imposed under this chapter unless a written petition
 requesting that improvement or service has been filed with the
 board.
 (b)  The petition must be signed by:
 (1)  the owners of a majority of the assessed value of
 real property in the district subject to assessment according to
 the most recent certified appraisal rolls for Denton and Dallas
 Counties; or
 (2)  the owners of a majority of the surface area of
 real property in the district subject to assessment as determined
 by the board. (Acts 69th Leg., R.S., Ch. 473, Sec. 6B.)
 Sec. 7817.0304.  IMPACT FEE AND ASSESSMENT EXEMPTIONS. The
 district may not impose an impact fee or assessment on:
 (1)  single-family residential property; or
 (2)  the property, including the equipment,
 rights-of-way, facilities, or improvements, of:
 (A)  an electric utility or a power generation
 company as defined by Section 31.002, Utilities Code;
 (B)  a gas utility as defined by Section 101.003
 or 121.001, Utilities Code;
 (C)  a telecommunications provider as defined by
 Section 51.002, Utilities Code; or
 (D)  a person who provides to the public cable
 television or advanced telecommunications services. (Acts 69th
 Leg., R.S., Ch. 473, Secs. 6D, 6F.)
 Sec. 7817.0305.  BONDS AND OTHER OBLIGATIONS. (a) The
 district may issue bonds or other obligations payable wholly or
 partly from ad valorem taxes, assessments, impact fees, revenue,
 grants, or other district money, or any combination of those
 sources, to pay for any authorized district purpose.
 (b)  In exercising the district's power to borrow, the
 district may issue a bond or other obligation in the form of a bond,
 note, certificate of participation or other instrument evidencing a
 proportionate interest in payments to be made by the district, or
 other type of obligation.
 (c)  The district must obtain approval from the City of
 Lewisville before issuing bonds under this section. (Acts 69th
 Leg., R.S., Ch. 473, Sec. 6E.)
 SECTION 1.02.  MUNICIPAL UTILITY DISTRICT. Subtitle F,
 Title 6, Special District Local Laws Code, is amended by adding
 Chapter 7886 to read as follows:
 CHAPTER 7886. SEBASTIAN MUNICIPAL UTILITY DISTRICT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 7886.0101.  DEFINITIONS
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 7886.0201.  QUALIFIED WATER SUPPLY CORPORATION
 Sec. 7886.0202.  PETITION TO DISSOLVE DISTRICT
 Sec. 7886.0203.  ELECTION RELATING TO DISSOLUTION OF
 DISTRICT
 Sec. 7886.0204.  ELECTION RESULTS
 Sec. 7886.0205.  AGREEMENT AND ORDER RELATING TO
 DISSOLUTION OF DISTRICT
 Sec. 7886.0206.  AGREEMENT AND ORDER RELATING TO WATER
 AND WASTEWATER SERVICE
 Sec. 7886.0207.  FILING REQUIREMENT
 CHAPTER 7886. SEBASTIAN MUNICIPAL UTILITY DISTRICT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 7886.0101.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "Corporation" means a qualified water supply
 corporation as described by Section 7886.0201.
 (3)  "District" means the Sebastian Municipal Utility
 District.
 (4)  "Utility commission" means the Public Utility
 Commission of Texas. (Acts 75th Leg., R.S., Ch. 516, Sec. 1; New.)
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 7886.0201.  QUALIFIED WATER SUPPLY CORPORATION. A
 corporation is qualified to assume the district's debts,
 liabilities, and obligations and assume ownership of the district's
 assets and facilities if the corporation:
 (1)  is member-owned, member-controlled, and formed
 under Chapter 67, Water Code; and
 (2)  possesses a valid certificate of public
 convenience and necessity obtained under Section 13.246, Water
 Code. (Acts 75th Leg., R.S., Ch. 516, Sec. 7.)
 Sec. 7886.0202.  PETITION TO DISSOLVE DISTRICT. (a) A
 petition may be filed with the board requesting an election in the
 district to decide if the board must enter into an agreement
 described by Section 7886.0205(a).
 (b)  A petition filed under this section must be printed in
 English and Spanish and read as follows:
 "We, the undersigned, being registered voters in the
 Sebastian Municipal Utility District, request the board of
 directors of the Sebastian Municipal Utility District to hold an
 election to decide if the board must enter into an agreement with a
 qualified water supply corporation in which the district's debts,
 liabilities, obligations, assets, and facilities are transferred
 to the qualified water supply corporation and the district is
 dissolved." (Acts 75th Leg., R.S., Ch. 516, Sec. 4.)
 Sec. 7886.0203.  ELECTION RELATING TO DISSOLUTION OF
 DISTRICT. (a)  The board shall call an election as requested by a
 petition filed under Section 7886.0202 only if:
 (1)  an election has not been held previously under
 this section; and
 (2)  the board determines that the petition is signed
 by at least 10 percent of the registered voters in the district.
 (b)  The board shall make the determination under Subsection
 (a)(2) not later than the seventh day after the date on which the
 board receives the petition.
 (c)  The board shall hold an election required by Subsection
 (a) on the first authorized uniform election date after the date the
 board determines an election is required that allows sufficient
 time for the board to comply with all applicable provisions of the
 Election Code.
 (d)  The board shall publish notice of the election in a
 newspaper of general circulation in the district once each week for
 three weeks before the date the election is scheduled to be held.
 (e)  The ballot for an election ordered in response to a
 petition filed under Section 7886.0202 must be printed in English
 and Spanish and read as follows:
 "By voting YES on this ballot, you are voting in favor of
 requiring the Sebastian Municipal Utility District to enter into an
 agreement with a qualified water supply corporation in which the
 district's debts, liabilities, obligations, assets, and facilities
 are transferred to the corporation and the district is dissolved.
 By voting NO on this ballot, you are voting against requiring the
 Sebastian Municipal Utility District to enter into such an
 agreement." (Acts 75th Leg., R.S., Ch. 516, Secs. 5(a), (b), (c),
 (d) (part), (e).)
 Sec. 7886.0204.  ELECTION RESULTS. (a)  If a majority of the
 voters vote in favor of the ballot proposition stated in Section
 7886.0203(e), the board shall enter into an agreement described by
 Section 7886.0205(a) if:
 (1)  a corporation agrees to the terms specified by
 Section 7886.0205(a); and
 (2)  the utility commission determines that the
 corporation is capable of rendering adequate and continuous service
 as required by Section 13.251, Water Code.
 (b)  If a majority of the voters vote against the ballot
 proposition stated in Section 7886.0203(e), the board may not enter
 into an agreement described by Section 7886.0205(a) before the
 district conducts the first board election held after the date on
 which the voters voted against the ballot proposition. (Acts 75th
 Leg., R.S., Ch. 516, Secs. 5(f), (g).)
 Sec. 7886.0205.  AGREEMENT AND ORDER RELATING TO DISSOLUTION
 OF DISTRICT. (a) A corporation may enter into an agreement with the
 district to:
 (1)  accept assignment of the district's certificate of
 public convenience and necessity obtained under Section 13.246,
 Water Code, and any right obtained under the certificate, after the
 utility commission determines that the corporation is capable of
 rendering adequate and continuous service as required by Section
 13.251, Water Code;
 (2)  assume the district's debts, liabilities, and
 obligations;
 (3)  assume ownership of the district's assets and
 facilities; and
 (4)  perform the district's functions and provide all
 services previously provided by the district.
 (b)  If a corporation enters into an agreement described by
 Subsection (a), the board shall issue an order that dissolves the
 district.
 (c)  The district's dissolution becomes effective on the
 30th day after the date the board issues the order dissolving the
 district.
 (d)  On the effective date of the dissolution:
 (1)  all of the district's property and other assets are
 transferred to the corporation;
 (2)  all of the district's debts, liabilities, and
 other obligations are assumed by the corporation; and
 (3)  the district's certificate of public convenience
 and necessity and any right obtained under the certificate is
 assigned to the corporation in the manner prescribed by Section
 13.251, Water Code.  (Acts 75th Leg., R.S., Ch. 516, Sec. 2.)
 Sec. 7886.0206.  AGREEMENT AND ORDER RELATING TO WATER AND
 WASTEWATER SERVICE. (a) A corporation may enter into an agreement
 with the district to:
 (1)  assume the district's debts, liabilities, and
 obligations relating to water and wastewater service;
 (2)  assume ownership of the district's assets and
 facilities relating to water and wastewater service;
 (3)  apply to the utility commission to obtain a
 certificate of public convenience and necessity or an amendment to
 a certificate under Section 13.244, Water Code, to render water and
 wastewater service to the area served by the district; and
 (4)  perform the district's functions relating to water
 and wastewater service and provide all services relating to those
 services previously provided by the district.
 (b)  If a corporation enters into an agreement described by
 Subsection (a) and the utility commission grants to the corporation
 a certificate of public convenience and necessity as described by
 Subsection (a)(3), the board shall issue an order transferring the
 district's debts, liabilities, obligations, assets, and facilities
 relating to water and wastewater service to the corporation.
 (c)  On the 30th day after the date the board issues the order
 transferring the district's debts, liabilities, obligations,
 assets, and facilities:
 (1)  all of the district's property and other assets
 relating to water and wastewater service are transferred to the
 corporation; and
 (2)  all of the district's debts, liabilities, and
 other obligations relating to water and wastewater service are
 assumed by the corporation. (Acts 75th Leg., R.S., Ch. 516, Sec. 3.)
 Sec. 7886.0207.  FILING REQUIREMENT. (a)  The board shall
 file a copy of the agreement described by Section 7886.0205(a) and a
 copy of the board's order dissolving the district issued under
 Section 7886.0205(b) not later than the 15th day after the date the
 board issues the order:
 (1)  with the Texas Commission on Environmental
 Quality;
 (2)  with the utility commission; and
 (3)  in the deed records of Willacy and Cameron
 Counties.
 (b)  The board shall file a copy of the agreement described
 by Section 7886.0206(a) and a copy of the board's order
 transferring the district's obligations and assets issued under
 Section 7886.0206(b) not later than the 15th day after the date the
 board issues the order:
 (1)  with the Texas Commission on Environmental
 Quality;
 (2)  with the utility commission; and
 (3)  in the deed records of Willacy and Cameron
 Counties.  (Acts 75th Leg., R.S., Ch. 516, Sec. 6.)
 SECTION 1.03.  RIVER AUTHORITIES. Subtitle G, Title 6,
 Special District Local Laws Code, is amended by adding Chapters
 8510 and 8511 to read as follows:
 CHAPTER 8510. RED RIVER AUTHORITY OF TEXAS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8510.0101.  DEFINITIONS
 Sec. 8510.0102.  NATURE OF AUTHORITY
 Sec. 8510.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE
 Sec. 8510.0104.  REVIEW SCHEDULE UNDER SUNSET ACT
 Sec. 8510.01045. SUNSET REPORT AUDIT
 Sec. 8510.0105.  TERRITORY
 Sec. 8510.0106.  EFFECT OF OVERLAPPING TERRITORY
 Sec. 8510.0107.  APPLICABILITY OF CHAPTER TO CERTAIN
 COUNTIES
 Sec. 8510.0108.  APPLICABILITY OF CHAPTER TO BOWIE
 COUNTY
 Sec. 8510.0109.  LIBERAL CONSTRUCTION OF CHAPTER
 SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
 Sec. 8510.0201.  MEMBERSHIP OF BOARD
 Sec. 8510.0202.  TERMS
 Sec. 8510.0203.  REMOVAL
 Sec. 8510.0204.  VACANCY
 Sec. 8510.0205.  OATH AND BOND REQUIREMENT FOR
 DIRECTORS
 Sec. 8510.0206.  COMPENSATION OF DIRECTORS
 Sec. 8510.0207.  VOTING REQUIREMENT
 Sec. 8510.0208.  OFFICERS
 Sec. 8510.0209.  DIRECTOR TRAINING PROGRAM
 Sec. 8510.0210.  MEETINGS
 Sec. 8510.0211.  SEPARATION OF POLICYMAKING AND
 MANAGEMENT FUNCTIONS
 Sec. 8510.0212.  ATTORNEYS, AGENTS, AND EMPLOYEES
 Sec. 8510.0213.  GENERAL MANAGER
 Sec. 8510.0214.  DIRECTOR'S, OFFICER'S, OR EMPLOYEE'S
 SURETY BOND
 Sec. 8510.0215.  AUTHORITY'S OFFICE
 Sec. 8510.0216.  RECORDS
 Sec. 8510.0217.  COMPLAINTS
 Sec. 8510.0218.  ALTERNATIVE DISPUTE RESOLUTION
 PROCEDURES
 Sec. 8510.0219.  PUBLIC TESTIMONY
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 8510.0301.  GENERAL POWERS
 Sec. 8510.0302.  POWERS RELATING TO CONSERVATION AND
 BENEFICIAL USE OF WATER
 Sec. 8510.0303.  POWERS REGARDING CANALS, WATERWAYS,
 AND RELATED FACILITIES
 Sec. 8510.0304.  FEDERALLY CONSTRUCTED OR MAINTAINED
 CANALS, WATERWAYS, AND FACILITIES
 Sec. 8510.0305.  POWER TO CONTROL, DEVELOP, STORE, AND
 USE WATER FOR NAVIGATIONAL USE
 Sec. 8510.0306.  POWERS RELATING TO FLOODING
 Sec. 8510.0307.  MASTER PLAN FOR DEVELOPMENT OF SOIL
 AND WATER RESOURCES
 Sec. 8510.0308.  POWERS RELATING TO PARKS AND
 RECREATIONAL FACILITIES
 Sec. 8510.0309.  POWERS RELATING TO WASTE FACILITIES;
 BONDS
 Sec. 8510.0310.  ADDITIONAL POWERS OF AUTHORITY AND
 OTHER PERSONS; BONDS
 Sec. 8510.0311.  POWERS RELATING TO CONTRACTS
 Sec. 8510.0312.  POWERS RELATING TO WATER DISTRIBUTION
 PLANTS OR SYSTEMS
 Sec. 8510.0313.  CONTRACTS FOR SALE AND DELIVERY OF
 WATER TO CERTAIN MUNICIPALITIES
 Sec. 8510.0314.  ACQUISITION OF PROPERTY BY GIFT,
 PURCHASE, OR EMINENT DOMAIN
 Sec. 8510.0315.  COST OF RELOCATING OR ALTERING
 PROPERTY
 Sec. 8510.0316.  ACQUISITION OR OPERATION OF PROPERTY
 Sec. 8510.0317.  LIMITATION ON PURCHASE OF GROUNDWATER
 RIGHTS
 Sec. 8510.0318.  LIMITATION ON POWERS OF AUTHORITY
 REGARDING GROUNDWATER
 Sec. 8510.0319.  LIMITATION ON POWERS AND DUTIES OF
 AUTHORITY; COMMISSION APPROVAL OF
 CERTAIN PLANS
 Sec. 8510.0320.  LIMITATION ON POWER TO MANUFACTURE AND
 PRODUCE GASOHOL
 Sec. 8510.0321.  SEAL
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
 Sec. 8510.0401.  PROCEDURE FOR PAYMENT
 Sec. 8510.0402.  RECEIPT OF MONEY
 Sec. 8510.0403.  FISCAL YEAR
 Sec. 8510.0404.  FILING OF AUDIT REPORT
 Sec. 8510.0405.  ASSET MANAGEMENT PLAN
 Sec. 8510.0406.  RATES AND CHARGES
 Sec. 8510.0407.  CHANGES TO RATES AND CHARGES
 Sec. 8510.0408.  NOTICE OF RIGHT TO APPEAL CHANGES TO
 RATES
 Sec. 8510.0409.  DEPOSITORY
 Sec. 8510.0410.  TAX NOT AUTHORIZED BY CHAPTER
 SUBCHAPTER E. BORROWED MONEY OR GRANTS
 Sec. 8510.0501.  POWER TO ISSUE OBLIGATIONS OR WARRANTS
 Sec. 8510.0502.  LOANS AND GRANTS
 Sec. 8510.0503.  POWER TO SEEK AND ACCEPT CONTRIBUTIONS
 Sec. 8510.0504.  POWER TO ISSUE BONDS
 Sec. 8510.0505.  FORM OF BONDS
 Sec. 8510.0506.  MATURITY
 Sec. 8510.0507.  BONDS PAYABLE FROM REVENUE
 Sec. 8510.0508.  COMPENSATION RATES
 Sec. 8510.0509.  ADDITIONAL SECURITY
 Sec. 8510.0510.  USE OF BOND PROCEEDS
 Sec. 8510.0511.  APPOINTMENT OF RECEIVER
 Sec. 8510.0512.  REFUNDING BONDS
 CHAPTER 8510. RED RIVER AUTHORITY OF TEXAS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8510.0101.  DEFINITIONS. In this chapter:
 (1)  "Authority" means the Red River Authority of
 Texas.
 (2)  "Board" means the authority's board of directors.
 (3)  "Commission" means the Texas Commission on
 Environmental Quality.
 (4)  "Director" means a board member. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 1 (part); New.)
 Sec. 8510.0102.  NATURE OF AUTHORITY. The authority is a
 conservation and reclamation district created under Section 59,
 Article XVI, Texas Constitution. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 1 (part).)
 Sec. 8510.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
 (a) The authority is:
 (1)  essential to accomplish the purposes of Section
 59, Article XVI, Texas Constitution; and
 (2)  created to serve a public use and benefit.
 (b)  All land and other property inside the authority's
 boundaries will benefit from the authority.
 (c)  All of the authority's territory will benefit by the
 exercise of the powers, rights, privileges, and functions conferred
 by this chapter.
 (d)  This chapter addresses a subject in which this state is
 interested. (Acts 56th Leg., R.S., Ch. 279, Secs. 2 (part), 30
 (part).)
 Sec. 8510.0104.  REVIEW SCHEDULE UNDER SUNSET ACT. A review
 of the authority under Section 325.025, Government Code, shall be
 conducted as if the authority were a state agency scheduled to be
 abolished September 1, 2031, and every 12th year after that year.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 1A(a) (part).)
 Sec. 8510.01045.  SUNSET REPORT AUDIT. (a) The state
 auditor shall conduct an audit of the authority to evaluate whether
 the authority has addressed the operational challenges identified
 in the report on the authority by the Sunset Advisory Commission
 presented to the 86th Legislature.
 (b)  The state auditor may not begin the audit required by
 Subsection (a) before December 1, 2021, and shall prepare and
 submit a report of the findings of the audit to the chairman and
 executive director of the Sunset Advisory Commission not later than
 December 1, 2022.
 (c)  The state auditor shall include the auditor's duties
 under this section in each audit plan under Section 321.013,
 Government Code, that governs the auditor's duties for the period
 specified by Subsection (b).
 (d)  This section expires January 1, 2023. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 36.)
 Sec. 8510.0105.  TERRITORY. (a) The authority is composed
 of the territory described by Subsection (b) as that territory may
 have been modified under:
 (1)  Subchapter J, Chapter 49, Water Code;
 (2)  Subchapter O, Chapter 51, Water Code;
 (3)  Subchapter H, Chapter 62, Water Code; or
 (4)  other law.
 (b)  The authority is composed of:
 (1)  the whole of each county in this state located
 wholly or partly in the watershed of the Red River and its
 tributaries in this state whose confluences with the Red River are
 upstream from the northeast corner of Bowie County, as shown by
 contour maps on file with the Texas Water Development Board; and
 (2)  the whole of Hartley, Hutchinson, Lamar, Lipscomb,
 and Red River Counties.
 (c)  A defect or irregularity in the boundary or an overlap
 or conflict of the boundary with another authority or district does
 not affect the authority's validity. (Acts 56th Leg., R.S., Ch.
 279, Sec. 2 (part); New.)
 Sec. 8510.0106.  EFFECT OF OVERLAPPING TERRITORY. (a) An
 overlap of the authority's territory with another district's or
 authority's territory or watershed does not affect the powers,
 affairs, duties, or functions of another district or authority,
 including the Canadian River Municipal Water Authority.
 (b)  A district or authority of a local nature, peculiar to a
 defined area, may be created wholly or partly inside the authority.
 (c)  The authority shall cooperate in every practical manner
 with the sponsor of an existing or proposed district or authority
 described by this section in the prosecution of its proposed
 improvements. (Acts 56th Leg., R.S., Ch. 279, Sec. 3.)
 Sec. 8510.0107.  APPLICABILITY OF CHAPTER TO CERTAIN
 COUNTIES.  Except as provided by Section 8510.0108, this chapter
 does not apply to Bowie, Cass, Delta, Franklin, Hopkins, Marion,
 Morris, or Titus County. (Acts 56th Leg., R.S., Ch. 279, Sec. 2
 (part).)
 Sec. 8510.0108.  APPLICABILITY OF CHAPTER TO BOWIE COUNTY.
 (a) In this section, "project" means the United States Army Corps
 of Engineers' Red River Bank Stabilization and Navigation Project,
 from Index, Arkansas, to Denison Dam.
 (b)  Bowie County is included in the authority for the
 limited purpose of participating in the project. This chapter
 applies to Bowie County to the extent necessary to accomplish the
 project.
 (c)  Bowie County is liable only for debt incurred by the
 authority directly in connection with the project. The board may
 exercise the powers and duties, including the power of eminent
 domain, under this chapter with relation to Bowie County only to the
 extent necessary to accomplish the project. (Acts 56th Leg., R.S.,
 Ch. 279, Secs. 2 (part), 14d; New.)
 Sec. 8510.0109.  LIBERAL CONSTRUCTION OF CHAPTER. This
 chapter shall be liberally construed to effectuate its purposes.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 30 (part).)
 SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
 Sec. 8510.0201.  MEMBERSHIP OF BOARD. (a) The board
 consists of nine directors appointed by the governor with the
 advice and consent of the senate.
 (b)  Each director must be:
 (1)  a freehold property taxpayer and a qualified voter
 of this state; and
 (2)  a resident of the director district that the
 director is appointed to represent.
 (c)  The governor shall appoint three directors to represent
 each of the following districts:
 (1)  director district no. 1 includes Armstrong,
 Carson, Castro, Collingsworth, Deaf Smith, Donley, Gray, Hemphill,
 Oldham, Parmer, Potter, Randall, Roberts, and Wheeler Counties;
 (2)  director district no. 2 includes Archer, Baylor,
 Briscoe, Childress, Clay, Cottle, Crosby, Dickens, Floyd, Foard,
 Hale, Hall, Hardeman, King, Knox, Motley, Swisher, Wichita, and
 Wilbarger Counties; and
 (3)  director district no. 3 includes Bowie, Cooke,
 Fannin, Grayson, Lamar, Montague, and Red River Counties. (Acts
 56th Leg., R.S., Ch. 279, Secs. 4(a) (part), (b), (c), (d), (e).)
 Sec. 8510.0202.  TERMS. Directors serve staggered six-year
 terms. (Acts 56th Leg., R.S., Ch. 279, Sec. 4(f) (part).)
 Sec. 8510.0203.  REMOVAL. (a) It is a ground for removal
 from the board that a director:
 (1)  does not have at the time of taking office the
 qualifications required by Sections 8510.0201 and 8510.0205;
 (2)  does not maintain during service on the board the
 qualifications required by Sections 8510.0201 and 8510.0205;
 (3)  is ineligible for directorship under Chapter 171,
 Local Government Code;
 (4)  cannot, because of illness or disability,
 discharge the director's duties for a substantial part of the
 director's term; or
 (5)  is absent from more than half of the regularly
 scheduled board meetings that the director is eligible to attend
 during a calendar year without an excuse approved by a majority vote
 of the board.
 (b)  The validity of a board action is not affected by the
 fact that it is taken when a ground for removal of a director
 exists.
 (c)  If the general manager has knowledge that a potential
 ground for removal exists, the general manager shall notify the
 board president of the potential ground. The president shall then
 notify the governor and the attorney general that a potential
 ground for removal exists.  If the potential ground for removal
 involves the president, the general manager shall notify the next
 highest ranking director, who shall then notify the governor and
 the attorney general that a potential ground for removal exists.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 4a.)
 Sec. 8510.0204.  VACANCY. The governor fills a board
 vacancy for the unexpired part of the term in the manner provided by
 Section 8510.0201. (Acts 56th Leg., R.S., Ch. 279, Sec. 4(f)
 (part).)
 Sec. 8510.0205.  OATH AND BOND REQUIREMENT FOR DIRECTORS.
 (a) Not later than the 15th day after the date of appointment, a
 director shall qualify by:
 (1)  taking the constitutional oath of office; and
 (2)  filing a good and sufficient bond with the
 secretary of state and obtaining the secretary of state's approval
 on the bond.
 (b)  The bond must be:
 (1)  in the amount of $5,000;
 (2)  payable to the authority; and
 (3)  conditioned on the faithful performance of duties
 as a director. (Acts 56th Leg., R.S., Ch. 279, Sec. 4(g).)
 Sec. 8510.0206.  COMPENSATION OF DIRECTORS. (a) Unless the
 board by resolution increases the fee to an amount authorized by
 Section 49.060, Water Code, a director shall receive as a fee of
 office an amount not to exceed $25 for each day of service necessary
 to discharge the director's duties if the board authorizes the
 same.
 (b)  Not later than the last day of each month or as soon as
 practicable after that date, a director shall file with the
 secretary a verified statement showing the amount due under
 Subsection (a).
 (c)  The authority shall issue a warrant for the amount shown
 in the verified statement filed under Subsection (b).
 (d)  In all areas of conflict with this section, Section
 49.060, Water Code, takes precedence. (Acts 56th Leg., R.S., Ch.
 279, Secs. 10(a) (part), (b).)
 Sec. 8510.0207.  VOTING REQUIREMENT. (a) Except as
 provided by Subsection (b), a concurrence of a majority of the
 directors present is sufficient in any matter relating to authority
 business.
 (b)  The concurrence of seven directors is required to award
 a construction contract or to authorize the issuance of a warrant to
 pay for a construction contract. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 5 (part).)
 Sec. 8510.0208.  OFFICERS. (a) The governor shall
 designate a director as the board president to serve as the
 authority's chief executive officer at the pleasure of the
 governor.
 (b)  The board shall elect one director as vice president,
 one director as secretary, and one director as treasurer.
 (c)  The vice president shall act as president if the
 president is absent or disabled.
 (d)  The secretary shall act as board secretary. The board
 shall select a secretary pro tem if the secretary is absent or
 unable to act.
 (e)  The authority may appoint officers, prescribe their
 duties, and set their compensation. (Acts 56th Leg., R.S., Ch. 279,
 Secs. 5 (part), 7 (part), 22 (part).)
 Sec. 8510.0209.  DIRECTOR TRAINING PROGRAM. (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
 board meeting 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 the authority's operations;
 (2)  the authority's programs, functions, rules, and
 budget;
 (3)  the results of the authority's most recent formal
 audit;
 (4)  the requirements of:
 (A)  laws relating to open meetings, public
 information, administrative procedure, and disclosure of conflicts
 of interest; and
 (B)  other laws applicable to members of the
 governing body of a river authority in performing their duties; and
 (5)  any applicable ethics policies adopted by the
 authority 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 general manager shall create a training manual that
 includes the information required by Subsection (b). The general
 manager shall distribute a copy of the training manual annually to
 each director. Each director shall sign and submit to the general
 manager a statement acknowledging that the director has received
 and reviewed the training manual. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 4b.)
 Sec. 8510.0210.  MEETINGS. (a) The president shall preside
 at all board meetings.
 (b)  At each regular board meeting, the board shall:
 (1)  include public testimony as a meeting agenda item;
 and
 (2)  allow the public to comment on all meeting agenda
 items and other matters under the authority's jurisdiction.
 (c)  At a regular board meeting, the board may not deliberate
 on or decide a matter not included in the meeting agenda, except
 that the board may discuss including the matter on the agenda for a
 subsequent meeting.
 (d)  The board or a board committee may hold a meeting by
 telephone conference call, by video conference call, or through
 communications over the Internet, in accordance with procedures
 provided by Subchapter F, Chapter 551, Government Code, if the
 board president or any three board members determine that holding
 the meeting in that manner is necessary or convenient.  (Acts 56th
 Leg., R.S., Ch. 279, Secs. 7 (part), 7a, 34(b).)
 Sec. 8510.0211.  SEPARATION OF POLICYMAKING AND MANAGEMENT
 FUNCTIONS. The board shall develop and implement policies that
 clearly separate the board's policymaking responsibilities and the
 general manager's and staff's management responsibilities. (Acts
 56th Leg., R.S., Ch. 279, Sec. 11a.)
 Sec. 8510.0212.  ATTORNEYS, AGENTS, AND EMPLOYEES. (a) The
 authority may appoint attorneys, agents, and employees, prescribe
 their duties, and set their compensation.
 (b)  The board may remove an authority employee.
 (c)  The board shall set the term of office and the
 compensation to be paid to authority employees. (Acts 56th Leg.,
 R.S., Ch. 279, Secs. 11 (part), 22 (part).)
 Sec. 8510.0213.  GENERAL MANAGER. (a) The board may employ
 a general manager.
 (b)  The board shall set the term of office and the
 compensation to be paid to the general manager.
 (c)  The board may not employ a director as general manager.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 11 (part).)
 Sec. 8510.0214.  DIRECTOR'S, OFFICER'S, OR EMPLOYEE'S SURETY
 BOND. (a)  A bond required of an authority director, officer, or
 employee must be executed by a surety company authorized to do
 business in this state, as surety on the bond.
 (b)  The authority shall pay the premium on the bond. (Acts
 56th Leg., R.S., Ch. 279, Sec. 12.)
 Sec. 8510.0215.  AUTHORITY'S OFFICE. A regular office shall
 be established and maintained to conduct the authority's business
 inside the authority's territory at a place determined by the
 board. (Acts 56th Leg., R.S., Ch. 279, Sec. 8 (part).)
 Sec. 8510.0216.  RECORDS. The secretary shall maintain a
 record of all board proceedings and orders. (Acts 56th Leg., R.S.,
 Ch. 279, Sec. 7 (part).)
 Sec. 8510.0217.  COMPLAINTS. (a) The authority shall
 maintain a system to promptly and efficiently act on complaints
 filed with the authority.
 (b)  The authority shall maintain:
 (1)  information about the subject matter of the
 complaint;
 (2)  information about the parties to the complaint;
 (3)  a summary of the results of the review or
 investigation of the complaint; and
 (4)  the disposition of the complaint.
 (c)  Periodically, the authority shall notify the parties to
 the complaint of the complaint's status until final disposition.
 (d)  The authority shall make information available
 describing its procedures for complaint investigation and
 resolution. (Acts 56th Leg., R.S., Ch. 279, Sec. 35.)
 Sec. 8510.0218.  ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.
 (a) The board shall develop a policy to encourage the use of
 appropriate alternative dispute resolution procedures under
 Chapter 2009, Government Code, to assist in the resolution of
 internal and external disputes under the authority's jurisdiction.
 (b)  The authority'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 authority shall:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for alternative dispute resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures. (Acts 56th Leg., R.S., Ch. 279, Sec. 33, as added by
 Acts 86th Leg., R.S., Ch. 23.)
 Sec. 8510.0219.  PUBLIC TESTIMONY. 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 issue
 under the authority's jurisdiction. (Acts 56th Leg., R.S., Ch.
 279, Sec. 34(a).)
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 8510.0301.  GENERAL POWERS. (a) The authority has:
 (1)  the functions, powers, rights, and duties as may
 permit the authority to accomplish the purposes for which it is
 created;
 (2)  the powers of this state under Section 59, Article
 XVI, Texas Constitution; and
 (3)  all powers, rights, privileges, and functions
 conferred on navigation districts by general law.
 (b)  Except as otherwise provided by this chapter, the
 authority has the rights, power, and privileges conferred by the
 general law applicable to a water control and improvement district
 created under Section 59, Article XVI, Texas Constitution,
 including Chapter 51, Water Code.
 (c)  The authority is governed by Chapters 49, 60, and 62,
 Water Code, but in all areas of conflict, Chapter 62 takes
 precedence. (Acts 56th Leg., R.S., Ch. 279, Secs. 14a (part), 19
 (part), 31; New.)
 Sec. 8510.0302.  POWERS RELATING TO CONSERVATION AND
 BENEFICIAL USE OF WATER. (a) The authority has the powers of this
 state under Section 59, Article XVI, Texas Constitution, to
 effectuate flood control and the conservation and use of the storm,
 flood, and unappropriated waters of the watershed of the Red River
 and its tributaries in this state for all beneficial purposes,
 subject only to:
 (1)  the legislature's policy declarations as to water
 use;
 (2)  the commission's continuing supervision and
 control;
 (3)  the provisions of Section 11.024, Water Code,
 prescribing the priorities of water uses; and
 (4)  the water rights acquired by municipalities and
 other users.
 (b)  The authority shall exercise its powers for the greatest
 practicable measure of the conservation and beneficial use of the
 storm, flood, and unappropriated waters of the watershed of the Red
 River and its tributaries in this state in the manner and for the
 particular purposes specified by this chapter, including the
 exercise of its powers to provide for:
 (1)  the study, correction, and control of both
 artificial and natural pollution of the Red River and its
 tributaries;
 (2)  the control, conservation, and orderly
 development of the watershed and water of the Red River and its
 tributaries in this state through all practical and legal means;
 (3)  the preservation of the equitable rights and
 beneficial use of the waters for the people of the different
 sections of the authority;
 (4)  the storage, control, and conservation of the
 waters of the Red River and its tributaries in this state and the
 prevention of the escape of any of those waters without the maximum
 of public service;
 (5)  the prevention of the devastation of lands from
 recurrent overflows;
 (6)  the protection of life and property in the
 watershed of the Red River and its tributaries from uncontrolled
 flood waters;
 (7)  the conservation of storm, flood, and
 unappropriated waters of the watershed of the Red River and its
 tributaries in this state essential for the beneficial uses of the
 people of that watershed;
 (8)  the better encouragement and development of
 drainage systems and drainage of lands that need drainage for
 profitable agricultural production;
 (9)  the conservation of soil to prevent destructive
 erosion and the increased threat of flooding incident to that
 erosion;
 (10)  the control of those waters and making them
 available for use in the development of commercial, industrial, and
 agricultural enterprises in all sections of the authority; and
 (11)  any purpose for which waters when controlled and
 conserved may be used in the performance of a useful service as
 authorized by the constitution of this state.
 (c)  For purposes of Subsection (b)(1), the authority may:
 (1)  adopt rules with regard to the pollution described
 by that subdivision;
 (2)  engage in policing to enforce those rules; and
 (3)  provide for penalties for violating those rules
 consisting of:
 (A)  fines not to exceed $1,000;
 (B)  confinement in the county jail for a period
 not to exceed 30 days; or
 (C)  both the fine and confinement.
 (d)  The general law pertaining to a water control and
 improvement district, including Chapters 49 and 51, Water Code,
 applies to Subsection (b)(1).
 (e)  The authority may store and conserve to the greatest
 beneficial use the storm, flood, and unappropriated waters of the
 Red River in this state or any tributary of that river in the
 authority to prevent the escape of water without maximum beneficial
 use inside or outside the authority's boundaries. (Acts 56th Leg.,
 R.S., Ch. 279, Secs. 14 (part), 14a (part); New.)
 Sec. 8510.0303.  POWERS REGARDING CANALS, WATERWAYS, AND
 RELATED FACILITIES. (a)  The authority may:
 (1)  promote, construct, maintain and operate, or aid
 and encourage, the construction, maintenance, and operation of
 navigable canals or waterways and all navigational systems or
 facilities auxiliary to navigable canals or waterways using the
 natural bed and banks of the Red River, where practicable, and then
 traversing a route the authority may find to be more feasible and
 practicable to connect the Red River in this state with any new
 navigation canals to be constructed in the lower reaches of the Red
 River or to connect the Red River with the Gulf Intracoastal
 Waterway;
 (2)  construct a system of artificial waterways and
 canals, together with all locks and other works, structures, and
 artificial facilities as may be necessary and convenient for the
 construction, maintenance, and operation of:
 (A)  navigation canals or waterways; and
 (B)  all navigational systems and facilities
 auxiliary to navigation canals or waterways; and
 (3)  acquire, improve, extend, take over, construct,
 maintain, repair, operate, develop, and regulate ports, levees,
 wharves, docks, locks, warehouses, grain elevators, dumping
 facilities, belt railways, lands, and all other facilities or aids
 to navigation or aids necessary to the operation or development of
 ports or waterways in the Red River basin in this state.
 (b)  A power described by Subsection (a)(3) applies with
 respect to a facility or aid described by that subdivision only if
 the facility or aid is in a county located inside the authority.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 14a (part).)
 Sec. 8510.0304.  FEDERALLY CONSTRUCTED OR MAINTAINED
 CANALS, WATERWAYS, AND FACILITIES. If the construction or
 maintenance and operation of navigable canals or waterways and all
 navigational systems or facilities auxiliary to navigable canals or
 waterways on the Red River in this state is taken over or performed
 by the federal government or an agency of the federal government,
 then the authority may:
 (1)  enter into contracts that may be required by the
 federal government, including assignments and transfers of
 property, property rights, easements, and privileges; and
 (2)  take any other action required by the federal
 government or an agency of the federal government.  (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 14a (part).)
 Sec. 8510.0305.  POWER TO CONTROL, DEVELOP, STORE, AND USE
 WATER FOR NAVIGATIONAL USE. (a) The authority may control,
 develop, store, and use the natural flow and floodwaters of the Red
 River and its tributaries for the purpose of operating and
 maintaining:
 (1)  navigable canals or waterways; and
 (2)  navigational systems or facilities auxiliary to
 navigable canals or waterways.
 (b)  The navigational use of water authorized by Subsection
 (a) is subordinate and incidental to consumptive use of water.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 14a (part).)
 Sec. 8510.0306.  POWERS RELATING TO FLOODING. The authority
 may effectuate channel rectification or alignment and the
 construction, maintenance, and operation of bank stabilization
 facilities to:
 (1)  prevent and aid in preventing devastation of lands
 from recurrent overflows; and
 (2)  protect life and property in the watershed of the
 Red River in this state or any tributaries of that river in the
 authority from uncontrolled floodwaters. (Acts 56th Leg., R.S.,
 Ch. 279, Sec. 14a (part).)
 Sec. 8510.0307.  MASTER PLAN FOR DEVELOPMENT OF SOIL AND
 WATER RESOURCES. (a) The authority shall prepare a master plan for
 the maximum development of the soil and water resources of the Red
 River watershed inside the authority.
 (b)  The master plan must include plans for the complete use
 of the water resources of the watershed for all economically
 beneficial purposes.
 (c)  A soil and water conservation district in the Red River
 watershed shall prepare the portion of the master plan and
 amendments to the plan relating to soil conservation, upstream
 flood prevention, and watershed protection works in aid of soil
 conservation and upstream flood prevention, subject to the approval
 of the State Soil and Water Conservation Board.
 (d)  The master plan must be filed with and approved by the
 commission. (Acts 56th Leg., R.S., Ch. 279, Sec. 14(k).)
 Sec. 8510.0308.  POWERS RELATING TO PARKS AND RECREATIONAL
 FACILITIES. (a) The authority may acquire:
 (1)  additional land adjacent to a permanent
 improvement constructed inside the authority for the purpose of
 developing public parks and recreational facilities; and
 (2)  necessary right-of-way for public ingress and
 egress to an area described by Subdivision (1).
 (b)  The authority may provide recreational facilities and
 services and may enter into a contract or agreement with any person
 for the construction, operation, or maintenance of a park or
 recreational facility.
 (c)  The authority may perform a function necessary to
 qualify for a state or federal recreational grant or loan.
 (d)  The legislature intends that the authority coordinate
 the development of any public parks or recreational facilities with
 the Parks and Wildlife Department for conformity with the land and
 water resources conservation and recreation plan. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 14a (part).)
 Sec. 8510.0309.  POWERS RELATING TO WASTE FACILITIES; BONDS.
 (a) As a necessary aid to the conservation, control, preservation,
 and distribution of the water of the Red River and its tributaries
 for beneficial use, the authority may:
 (1)  purchase, construct, improve, repair, operate,
 and maintain works and facilities necessary for the collection,
 transportation, treatment, and disposal of sewage and industrial
 waste and effluent; and
 (2)  issue bonds for a purpose described by Subdivision
 (1).
 (b)  The authority may contract with:
 (1)  a municipality or other entity to collect,
 transport, treat, and dispose of sewage from the municipality or
 entity; and
 (2)  a municipality for the use of collection,
 transportation, treatment, or disposal facilities owned by the
 municipality or by the authority.
 (c)  A bond issued under this section must be:
 (1)  payable from revenue under a contract described by
 this section or from other authority income; and
 (2)  in the form and issued in the manner prescribed by
 law for other revenue bonds and as provided by Sections 8510.0504,
 8510.0505, 8510.0506, 8510.0507, 8510.0508, 8510.0509, 8510.0510,
 8510.0511, and 8510.0512. (Acts 56th Leg., R.S., Ch. 279, Sec. 14a
 (part).)
 Sec. 8510.0310.  ADDITIONAL POWERS OF AUTHORITY AND OTHER
 PERSONS; BONDS. (a) In this section, "public agency" means an
 authority, district, municipality, other political subdivision,
 joint board, or other public agency created and operating under the
 laws of this state.
 (b)  The authority and a person may:
 (1)  contract, on terms to which the parties may agree,
 with respect to an authority power, function, or duty; and
 (2)  execute appropriate documents and instruments in
 connection with a contract described by Subdivision (1).
 (c)  The authority may issue bonds in the manner provided by
 Sections 8510.0504, 8510.0505, 8510.0506, 8510.0507, 8510.0508,
 8510.0510, and 8510.0511 with respect to its powers, including the
 powers granted by this section, for the purpose of providing money:
 (1)  to enable the authority to pay for the costs of
 engineering design and studies, surveys, title research,
 appraisals, options on property, and other related matters and
 activities in connection with planning and implementing various
 proposed projects or improvements; and
 (2)  to operate and maintain a facility.
 (d)  Notwithstanding any other provision of this chapter,
 the authority may undertake and carry out any activities, enter
 into loan agreements, leases, or installment sales agreements, and
 acquire, construct, own, operate, maintain, repair, improve, or
 extend and loan, lease, sell, or otherwise dispose of, on terms
 including rentals, sale price, or installment sale payments as the
 parties may agree, at any place or location inside the authority's
 boundaries, any and all money or bond proceeds, works,
 improvements, facilities, plants, buildings, structures,
 equipment, and appliances, and all property or any property
 interest, that is incident, helpful, or necessary.
 (e)  The authority may exercise the powers provided by
 Subsection (d) to:
 (1)  provide for the control, storage, preservation,
 transmission, treatment, distribution, and use of water, including
 storm water, floodwater, and the water of rivers and streams, for
 irrigation, electric energy, flood control, municipal, domestic,
 industrial, agricultural, and commercial uses and purposes and for
 all other beneficial purposes;
 (2)  supply water for municipal, domestic, electric
 energy, industrial, irrigation, oil flooding, mining,
 agricultural, and commercial uses and purposes and for all other
 beneficial uses and purposes;
 (3)  generate, produce, distribute, and sell electric
 energy; and
 (4)  facilitate the carrying out of an authority power,
 duty, or function.
 (f)  The purposes stated by Subsection (e) are for the
 conservation and development of the natural resources of this state
 within the meaning of Section 59, Article XVI, Texas Constitution.
 (g)  A public agency may:
 (1)  impose a fee, rate, charge, rental, or other
 amount, including a water charge, a sewage charge, a solid waste
 disposal system fee and a charge including garbage collection or
 handling fee, or another charge or fee, for a service or facility
 provided by a utility operated by the public agency, or provided
 pursuant to or in connection with a contract with the authority;
 (2)  impose an amount described by Subdivision (1) on
 inhabitants, users, or beneficiaries of the utility, service, or
 facility described by that subdivision; and
 (3)  use or pledge an amount described by Subdivision
 (1) to make a payment to the authority required under the contract
 and may pledge that amount in an amount sufficient to make all or
 any part of the payment to the authority when due.
 (h)  If a public agency and the authority agree in a
 contract, the payment made by the public agency to the authority
 under the contract is an expense of operation of a facility or
 utility operated by the public agency.
 (i)  This section does not compel a person or public agency
 to secure water, sewer service, or another service from the
 authority, except under a voluntarily executed contract. (Acts
 56th Leg., R.S., Ch. 279, Secs. 14b(a)(part), (b), (d), (e), (f),
 (g), (h)(part), (j).)
 Sec. 8510.0311.  POWERS RELATING TO CONTRACTS. (a) The
 authority may execute any contract and enter into any agreement
 necessary to accomplish the purpose for which it was created,
 including a contract with a municipality, corporation, or district,
 the United States, this state or an agency of this state, or the
 state of Oklahoma, Arkansas, or Louisiana, the confines of which
 are contiguous or adjacent to the Red River.
 (b)  The authority may enter into a contract or execute an
 instrument necessary or convenient to the exercise of the
 authority's powers, rights, privileges, and functions granted by
 this chapter and general law pertaining to a water control and
 improvement district. (Acts 56th Leg., R.S., Ch. 279, Secs. 16, 22
 (part).)
 Sec. 8510.0312.  POWERS RELATING TO WATER DISTRIBUTION
 PLANTS OR SYSTEMS. (a) The authority may contract with a
 municipality located inside its boundaries for the purchase, lease,
 use, management, control, or operation of a water distribution
 plant or system owned by the municipality in accordance with the
 terms mutually agreed on by the governing bodies of the authority
 and the municipality.
 (b)  The authority may acquire by a contract described by
 Subsection (a) rights in surface water or groundwater belonging to
 the municipality.
 (c)  The authority may use water rights acquired from a
 municipality under Subsection (b) only for:
 (1)  a purpose for which the municipality would be
 authorized to use them; and
 (2)  the purposes of the municipality's water
 distribution plant or system. (Acts 56th Leg., R.S., Ch. 279, Sec.
 16a.)
 Sec. 8510.0313.  CONTRACTS FOR SALE AND DELIVERY OF WATER TO
 CERTAIN MUNICIPALITIES. The authority may enter into a contract
 necessary to provide for the sale and delivery of water to the City
 of Eldorado, Oklahoma. (Acts 56th Leg., R.S., Ch. 279, Sec. 16A.)
 Sec. 8510.0314.  ACQUISITION OF PROPERTY BY GIFT, PURCHASE,
 OR EMINENT DOMAIN. (a) In this section, "property" means property
 of any kind, including a lighter, tug, barge, or other floating
 equipment of any nature.
 (b)  The authority may acquire by gift or purchase property
 or a property interest located inside or outside the authority's
 boundaries necessary to the exercise of the powers, rights,
 privileges, and functions conferred on the authority by this
 chapter and by the exercise of the power of eminent domain in the
 manner provided by Subsection (c), provided that the authority is
 not required to give bond for appeal or bond for costs in a judicial
 proceeding.
 (c)  The authority may exercise the power of eminent domain
 in the manner provided by the general law applicable to a water
 control and improvement district.
 (d)  The authority may not exercise the power of eminent
 domain outside the authority's boundaries.
 (e)  The authority's authority under this section to
 exercise the power of eminent domain expired on September 1, 2013,
 unless the authority submitted a letter to the comptroller in
 accordance with Section 2206.101(b), Government Code, not later
 than December 31, 2012. (Acts 56th Leg., R.S., Ch. 279, Secs. 14a
 (part), 18 (part), 19 (part); New.)
 Sec. 8510.0315.  COST OF RELOCATING OR ALTERING PROPERTY.
 If the authority's exercise of the power of eminent domain, the
 power of relocation, or any other power granted by this chapter
 makes necessary relocating, raising, rerouting, changing the grade
 of, or altering the construction of a highway, railroad, electric
 transmission line, telephone or telegraph property or facility, or
 pipeline, the necessary action shall be accomplished at the
 authority's sole expense. (Acts 56th Leg., R.S., Ch. 279, Sec. 18
 (part).)
 Sec. 8510.0316.  ACQUISITION OR OPERATION OF PROPERTY. (a)
 In this section, "property" includes:
 (1)  rights, including surface water rights and
 groundwater rights; and
 (2)  land, tenements, easements, rights-of-way,
 improvements, reservoirs, dams, canals, laterals, plants, works,
 and facilities.
 (b)  The authority may investigate, plan, acquire,
 construct, maintain, or operate any property the authority
 considers necessary or proper to accomplish the purposes for which
 the authority is created.
 (c)  The power described by Subsection (b) includes the power
 to acquire, inside or outside the authority, property and all other
 rights that are incidental or helpful to carrying out the purposes
 for which the authority is created.
 (d)  The authority may purchase groundwater rights only as
 provided by Section 8510.0317.
 (e)  Notwithstanding the other provisions of this section,
 the authority may engage in the generation or distribution of
 electric energy only as provided by Section 8510.0310. (Acts 56th
 Leg., R.S., Ch. 279, Sec. 19 (part); New.)
 Sec. 8510.0317.  LIMITATION ON PURCHASE OF GROUNDWATER
 RIGHTS. The authority may purchase groundwater rights in a county
 inside the authority's territory only if:
 (1)  there is a groundwater conservation district that
 has jurisdiction over water wells located in the county; or
 (2)  in a county that is not in the jurisdiction of a
 groundwater conservation district, the commissioners court of the
 county approves the purchase of groundwater rights by the authority
 in the county. (Acts 56th Leg., R.S., Ch. 279, Sec. 19a.)
 Sec. 8510.0318.  LIMITATION ON POWERS OF AUTHORITY REGARDING
 GROUNDWATER. This chapter does not authorize the authority to:
 (1)  acquire or regulate groundwater or groundwater
 rights by the exercise of the power of eminent domain; or
 (2)  regulate the use of groundwater resources. (Acts
 56th Leg., R.S., Ch. 279, Sec. 25.)
 Sec. 8510.0319.  LIMITATION ON POWERS AND DUTIES OF
 AUTHORITY; COMMISSION APPROVAL OF CERTAIN PLANS. (a) The
 authority's powers and duties under this chapter are subject to all
 legislative declarations of public policy in the maximum use of the
 waters of the authority's watersheds for the purposes for which the
 authority was created.
 (b)  The commission shall consider the adequacy and
 feasibility of, and approve or refuse to approve, each flood
 control or conservation plan that is devised to achieve a purpose
 for which the authority was created. (Acts 56th Leg., R.S., Ch.
 279, Sec. 15 (part).)
 Sec. 8510.0320.  LIMITATION ON POWER TO MANUFACTURE AND
 PRODUCE GASOHOL. The authority may manufacture and produce gasohol
 only:
 (1)  to operate the authority's equipment in an
 emergency as determined by the authority's general manager; and
 (2)  on obtaining any necessary authorization required
 by law. (Acts 56th Leg., R.S., Ch. 279, Sec. 14c(a).)
 Sec. 8510.0321.  SEAL. The authority may use a corporate
 seal. (Acts 56th Leg., R.S., Ch. 279, Sec. 22 (part).)
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
 Sec. 8510.0401.  PROCEDURE FOR PAYMENT. A warrant for the
 payment of money by the authority may be drawn and signed by two
 authority officers or employees, as designated by a standing order
 entered in the authority's minutes, if the account has been
 contracted and ordered paid by the board. (Acts 56th Leg., R.S.,
 Ch. 279, Sec. 5 (part).)
 Sec. 8510.0402.  RECEIPT OF MONEY. The treasurer shall
 receive and give a receipt for all money received and spent by the
 authority. (Acts 56th Leg., R.S., Ch. 279, Sec. 7 (part).)
 Sec. 8510.0403.  FISCAL YEAR. The authority's fiscal year
 ends September 30 of each year. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 9 (part).)
 Sec. 8510.0404.  FILING OF AUDIT REPORT. A copy of the audit
 report prepared under Subchapter G, Chapter 49, Water Code, shall
 be filed:
 (1)  as required by Section 49.194, Water Code; and
 (2)  in the office of the auditor. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 9 (part); New.)
 Sec. 8510.0405.  ASSET MANAGEMENT PLAN. (a) In this
 section, "system" means a system for the:
 (1)  provision of water to the public for human
 consumption; or
 (2)  collection and treatment of wastewater.
 (b)  The authority shall adopt an asset management plan by:
 (1)  preparing an asset inventory that identifies the
 assets of each system and the condition of the assets;
 (2)  developing criteria to prioritize assets for
 repair or replacement, including:
 (A)  the date by which the asset will need to be
 repaired or replaced;
 (B)  the importance of the asset in providing safe
 drinking water and complying with regulatory standards;
 (C)  the importance of the asset to the effective
 operation of the system; and
 (D)  other criteria as determined by the
 authority;
 (3)  estimating asset repair and replacement costs;
 (4)  identifying and evaluating potential financing
 options; and
 (5)  prioritizing systems that are not in compliance
 with federal or state regulatory standards, including water quality
 standards.
 (c)  The authority shall review and revise the plan as
 necessary to account for regulatory changes and other developments.
 (d)  The board shall approve the plan annually as part of its
 budgeting process. (Acts 56th Leg., R.S., Ch. 279, Sec. 14e.)
 Sec. 8510.0406.  RATES AND CHARGES. (a) The authority shall
 impose rates and other charges for the sale or use of water or for
 services sold, provided, or supplied by the authority.
 (b)  The rates and other charges must be reasonable and
 nondiscriminatory but sufficient to provide revenue adequate to:
 (1)  pay the authority's expenses in carrying out the
 functions for which it is created; and
 (2)  fulfill the terms of any agreements made with the
 holders of any of the authority's obligations. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 20 (part).)
 Sec. 8510.0407.  CHANGES TO RATES AND CHARGES. (a) In this
 section, "affected person" has the meaning assigned by Section
 13.002, Water Code.
 (b)  The board shall establish a process to ensure that,
 before the authority makes a significant change to a rate or charge
 for the sale and use of water, affected persons are provided:
 (1)  notice of the proposed change; and
 (2)  an opportunity to provide to the board comments
 regarding the proposed change.
 (c)  The process established under Subsection (b) must
 include:
 (1)  the provision of notice of a proposed change:
 (A)  on the authority's website; and
 (B)  in an affected person's utility bills; and
 (2)  appropriate informational meetings or rate
 hearings that provide affected persons the opportunity to provide
 public comments about the proposed change to be held:
 (A)  before sending a statement of intent required
 under Chapter 13, Water Code;
 (B)  in locations as necessary to enable affected
 persons to attend; and
 (C)  after the provision of notice under
 Subdivision (1).
 (d)  The board by rule shall establish a percentage change in
 a rate or charge such that a change greater than or equal to that
 percentage is considered significant for purposes of Subsection
 (b). (Acts 56th Leg., R.S., Ch. 279, Sec. 20a (part).)
 Sec. 8510.0408.  NOTICE OF RIGHT TO APPEAL CHANGES TO RATES.
 (a)  In this section, "affected person" has the meaning assigned by
 Section 13.002, Water Code.
 (b)  The authority shall notify affected persons of their
 right to appeal changes to rates:
 (1)  in notices related to changes to rates;
 (2)  in utility bills sent before the deadline for
 initiating an appeal under Chapter 13, Water Code; and
 (3)  on the authority's website.
 (c)  The notice required by Subsection (b) must include
 descriptions of:
 (1)  the appeals process;
 (2)  the requirements for an appeal, including the
 number of signatures needed on a petition; and
 (3)  the methods available for obtaining additional
 information related to rates. (Acts 56th Leg., R.S., Ch. 279, Secs.
 20a (part), 20b.)
 Sec. 8510.0409.  DEPOSITORY. (a) The board shall designate
 one or more banks in the authority to serve as depository for the
 authority's money.
 (b)  Authority money shall be deposited in a depository,
 except that:
 (1)  money pledged to pay bonds may be deposited with
 the trustee bank named in the trust agreement; and
 (2)  money shall be remitted to the bank of payment for
 the payment of the principal of and interest on bonds. (Acts 56th
 Leg., R.S., Ch. 279, Sec. 23 (part).)
 Sec. 8510.0410.  TAX NOT AUTHORIZED BY CHAPTER. This
 chapter does not authorize the authority to impose any form of tax
 inside the authority. (Acts 56th Leg., R.S., Ch. 279, Sec. 24.)
 SUBCHAPTER E. BORROWED MONEY OR GRANTS
 Sec. 8510.0501.  POWER TO ISSUE OBLIGATIONS OR WARRANTS.
 The authority may issue obligations or warrants to obtain money.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 21 (part).)
 Sec. 8510.0502.  LOANS AND GRANTS. The authority may:
 (1)  borrow money for its corporate purposes; and
 (2)  borrow money or accept a grant from the United
 States, this state, or any other source, and in connection with the
 loan or grant, enter into any agreement or assume any obligation as
 may be required. (Acts 56th Leg., R.S., Ch. 279, Sec. 22 (part).)
 Sec. 8510.0503.  POWER TO SEEK AND ACCEPT CONTRIBUTIONS.
 (a) The authority may seek and accept from any source a contribution
 to an authority fund for the purpose of funding:
 (1)  necessary studies;
 (2)  engineering and other services; and
 (3)  the collection and computation of data respecting
 regional and general conditions that influence the character and
 extent of the improvements necessary to effect the authority's
 purposes to the greatest public advantage.
 (b)  A grant or gratuity shall be strictly accounted for and
 is subject to the same rules and orders applicable to other money
 the authority handles or disburses. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 17.)
 Sec. 8510.0504.  POWER TO ISSUE BONDS. (a)  The authority
 may issue bonds as authorized by this chapter for the purpose of
 providing money for any purpose authorized by this chapter.
 (b)  The authority, without an election, may issue bonds
 payable from the authority's revenue pledged by board resolution.
 (c)  The bonds must be authorized by a board resolution.
 (Acts 56th Leg., R.S., Ch. 279, Secs. 26(a), (b) (part).)
 Sec. 8510.0505.  FORM OF BONDS. Authority bonds must be:
 (1)  issued in the authority's name;
 (2)  signed by the president or vice president; and
 (3)  attested by the secretary. (Acts 56th Leg., R.S.,
 Ch. 279, Sec. 26(b) (part).)
 Sec. 8510.0506.  MATURITY. Authority bonds must mature not
 later than 50 years after the date of their issuance. (Acts 56th
 Leg., R.S., Ch. 279, Sec. 26(b) (part).)
 Sec. 8510.0507.  BONDS PAYABLE FROM REVENUE. (a)  In this
 section, "net revenue" means the authority's gross revenue less the
 amount necessary to pay the cost of maintaining and operating the
 authority and the authority's property.
 (b)  Authority bonds may be secured by a pledge of:
 (1)  all or part of the authority's net revenue;
 (2)  the net revenue of a contract entered into at any
 time; or
 (3)  other revenue specified by board resolution.
 (c)  The pledge may reserve the right to issue additional
 bonds on a parity with or subordinate to the bonds being issued,
 subject to conditions specified by the pledge. (Acts 56th Leg.,
 R.S., Ch. 279, Sec. 26(d).)
 Sec. 8510.0508.  COMPENSATION RATES. (a)  The board shall
 set and revise the rates of compensation for:
 (1)  water the authority sells; and
 (2)  services the authority renders.
 (b)  The rates of compensation must be sufficient to:
 (1)  pay the expense of operating and maintaining the
 authority's facilities;
 (2)  pay the bonds as they mature and the interest as it
 accrues; and
 (3)  maintain the reserve and other funds as provided
 in the resolution authorizing the bonds. (Acts 56th Leg., R.S., Ch.
 279, Sec. 26(e).)
 Sec. 8510.0509.  ADDITIONAL SECURITY. (a)  Authority bonds,
 including refunding bonds, may be additionally secured by a deed of
 trust lien on the authority's physical property and all franchises,
 easements, water rights and appropriation permits, leases, and
 contracts, and all rights related to the property, vesting in the
 trustee power to:
 (1)  sell the property for payment of the debt;
 (2)  operate the property; and
 (3)  take other action to further secure the bonds.
 (b)  The deed of trust may:
 (1)  contain any provision the board prescribes to
 secure the bonds and preserve the trust estate;
 (2)  provide for amendment or modification of the deed
 of trust; and
 (3)  provide for the issuance of bonds to replace lost
 or mutilated bonds.
 (c)  A purchaser under a sale under the deed of trust is the
 owner of the dam and other property and facilities purchased and is
 entitled to maintain and operate the property and facilities, if
 the authority forfeits or defaults. (Acts 56th Leg., R.S., Ch. 279,
 Sec. 28.)
 Sec. 8510.0510.  USE OF BOND PROCEEDS. (a)  The authority
 may set aside an amount of proceeds from the sale of authority bonds
 for the payment of interest expected to accrue during construction
 and a reserve interest and sinking fund. The resolution
 authorizing the bonds may provide for setting aside and using the
 proceeds as provided by this subsection.
 (b)  The authority may use proceeds from the sale of the
 bonds to pay any expense necessarily incurred in accomplishing the
 authority's purposes. (Acts 56th Leg., R.S., Ch. 279, Sec. 26(f).)
 Sec. 8510.0511.  APPOINTMENT OF RECEIVER. (a)  On default or
 threatened default in the payment of the principal of or interest on
 authority bonds, a court may appoint a receiver for the authority on
 petition of the holders of 25 percent of the outstanding bonds of
 the issue in default or threatened with default.
 (b)  The receiver may collect and receive all authority
 income, employ and discharge authority agents and employees, take
 charge of money on hand, and manage the authority's proprietary
 affairs without the board's consent or hindrance.
 (c)  The receiver may be authorized to sell or contract for
 the sale of water or to renew those contracts with the approval of
 the court that appointed the receiver.
 (d)  The court may vest the receiver with any other power or
 duty the court finds necessary to protect the bondholders. (Acts
 56th Leg., R.S., Ch. 279, Sec. 26(g).)
 Sec. 8510.0512.  REFUNDING BONDS. (a)  The authority may
 issue refunding bonds to refund outstanding authority bonds and
 interest on those bonds.
 (b)  Refunding bonds may:
 (1)  be issued to refund bonds of more than one series;
 (2)  combine the pledges for the outstanding bonds for
 the security of the refunding bonds; or
 (3)  be secured by a pledge of other or additional
 revenue.
 (c)  The provisions of this subchapter regarding the
 issuance of other bonds and the remedies of the holders apply to
 refunding bonds.
 (d)  The comptroller shall register the refunding bonds on
 surrender and cancellation of the bonds to be refunded.
 (e)  Instead of issuing bonds to be registered on the
 surrender and cancellation of the bonds to be refunded, the
 authority, in the resolution authorizing the issuance of the
 refunding bonds, may provide for the sale of the refunding bonds and
 the deposit of the proceeds in a bank at which the bonds to be
 refunded are payable. In that case, the refunding bonds may be
 issued in an amount sufficient to pay the interest on the bonds to
 be refunded to their option date or maturity date, and the
 comptroller shall register the refunding bonds without the
 concurrent surrender and cancellation of the bonds to be refunded.
 (Acts 56th Leg., R.S., Ch. 279, Sec. 27.)
 CHAPTER 8511. NUECES RIVER AUTHORITY
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8511.0101.  DEFINITIONS
 Sec. 8511.0102.  NATURE OF AUTHORITY
 Sec. 8511.0103.  PURPOSE OF CHAPTER
 Sec. 8511.0104.  REVIEW SCHEDULE UNDER SUNSET ACT
 Sec. 8511.0105.  TERRITORY
 Sec. 8511.0106.  LIBERAL CONSTRUCTION OF CHAPTER
 SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
 Sec. 8511.0201.  MEMBERSHIP OF BOARD
 Sec. 8511.0202.  TERMS
 Sec. 8511.0203.  REMOVAL
 Sec. 8511.0204.  VACANCY
 Sec. 8511.0205.  BYLAWS
 Sec. 8511.0206.  BOND REQUIREMENT FOR DIRECTORS
 Sec. 8511.0207.  COMPENSATION OF DIRECTORS
 Sec. 8511.0208.  OFFICERS
 Sec. 8511.0209.  COMMITTEES
 Sec. 8511.0210.  EXECUTIVE DIRECTOR
 Sec. 8511.0211.  DIRECTOR TRAINING PROGRAM
 Sec. 8511.0212.  INTEREST IN CONTRACT
 Sec. 8511.0213.  SEPARATION OF POLICYMAKING AND
 MANAGEMENT FUNCTIONS
 Sec. 8511.0214.  PUBLIC TESTIMONY
 Sec. 8511.0215.  DIRECTORS' AND EMPLOYEES' FIDELITY
 BONDS
 Sec. 8511.0216.  AUTHORITY'S OFFICE
 Sec. 8511.0217.  COMPLAINTS
 Sec. 8511.0218.  ALTERNATIVE DISPUTE RESOLUTION
 PROCEDURES
 Sec. 8511.0219.  FIVE-YEAR STRATEGIC PLAN
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 8511.0301.  GENERAL POWERS AND DUTIES
 Sec. 8511.0302.  CONTROL AND USE OF WATERS
 Sec. 8511.0303.  USE OF BED AND BANKS OF NUECES RIVER
 AND ITS TRIBUTARIES
 Sec. 8511.0304.  MASTER PLAN
 Sec. 8511.0305.  WATER CONSERVATION PROGRAM
 Sec. 8511.0306.  FORESTATION AND REFORESTATION
 Sec. 8511.0307.  GROUNDWATER
 Sec. 8511.0308.  WATER QUALITY CONTROL
 Sec. 8511.0309.  SOLID WASTE SERVICES
 Sec. 8511.0310.  APPLICABILITY OF CERTAIN ENVIRONMENTAL
 LAWS
 Sec. 8511.0311.  PARKS AND RECREATIONAL FACILITIES
 Sec. 8511.0312.  PERMITS AND LICENSES
 Sec. 8511.0313.  SERVICE CONTRACTS AND CHARGES
 Sec. 8511.0314.  USE OF REVENUE AND PROPERTY
 Sec. 8511.0315.  ACQUISITION, MAINTENANCE, AND
 OPERATION OF PROPERTY
 Sec. 8511.0316.  ACQUISITION, CONSTRUCTION,
 MAINTENANCE, AND OPERATION OF
 FACILITIES
 Sec. 8511.0317.  EMINENT DOMAIN
 Sec. 8511.0318.  COST OF RELOCATING OR ALTERING
 PROPERTY
 Sec. 8511.0319.  DISPOSITION OF PROPERTY
 Sec. 8511.0320.  GENERAL CONTRACT POWERS
 Sec. 8511.0321.  AWARD OF CERTAIN CONTRACTS
 Sec. 8511.0322.  CONSTRUCTION CONTRACTS: PAYMENT
 Sec. 8511.0323.  CONFLICT OF INTEREST IN CERTAIN
 CONTRACTS
 Sec. 8511.0324.  SURVEYS AND ENGINEERING INVESTIGATIONS
 Sec. 8511.0325.  PLANS
 Sec. 8511.0326.  ACCESS TO AUTHORITY PROPERTY
 Sec. 8511.0327.  LIMITATIONS ON POWERS AND DUTIES;
 COMMISSION APPROVAL OF CERTAIN PLANS
 SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
 PROVISIONS
 Sec. 8511.0401.  ADOPTION AND ENFORCEMENT OF RULES
 Sec. 8511.0402.  CIVIL PENALTY; INJUNCTIVE RELIEF
 Sec. 8511.0403.  COURT REVIEW
 SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
 Sec. 8511.0501.  DISBURSEMENT OF MONEY
 Sec. 8511.0502.  ACCOUNTS, CONTRACTS, AND OTHER
 RECORDS; PUBLIC INSPECTION
 Sec. 8511.0503.  FEES AND CHARGES
 Sec. 8511.0504.  TRUST MONEY
 Sec. 8511.0505.  DEPOSITORY
 Sec. 8511.0506.  INVESTMENT OF AUTHORITY MONEY;
 APPLICATION OF INCOME FROM
 INVESTMENTS
 Sec. 8511.0507.  FISCAL YEAR
 Sec. 8511.0508.  AUDIT
 SUBCHAPTER F. TAX PROVISIONS
 Sec. 8511.0601.  MAINTENANCE AND ADMINISTRATION TAX
 Sec. 8511.0602.  ELECTION FOR AD VALOREM TAX OR BONDS
 PAYABLE FROM AD VALOREM TAXES
 Sec. 8511.0603.  ASSESSMENT AND COLLECTION OF TAXES
 Sec. 8511.0604.  MAXIMUM TAX RATE
 Sec. 8511.0605.  POWERS RELATING TO IMPROVEMENTS
 PECULIAR TO DEFINED AREA
 SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS
 Sec. 8511.0701.  BORROWING MONEY; GRANTS
 Sec. 8511.0702.  POWER TO APPLY FOR MONEY FOR
 ENGINEERING SURVEYS, INFORMATION
 COMPILATION AND COLLECTION, AND
 OTHER PURPOSES
 Sec. 8511.0703.  POWER TO ISSUE BONDS
 Sec. 8511.0704.  FORM OF BONDS
 Sec. 8511.0705.  MATURITY
 Sec. 8511.0706.  ELECTION FOR BONDS PAYABLE FROM AD
 VALOREM TAXES
 Sec. 8511.0707.  TRUST INDENTURE
 Sec. 8511.0708.  ADDITIONAL BONDS
 Sec. 8511.0709.  ADDITIONAL PROVISIONS IN RESOLUTION
 AUTHORIZING BONDS OR TRUST INDENTURE
 Sec. 8511.0710.  REFUNDING BONDS
 CHAPTER 8511. NUECES RIVER AUTHORITY
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8511.0101.  DEFINITIONS. Unless the context otherwise
 requires, in this chapter:
 (1)  "Authority" means the Nueces River Authority.
 (2)  "Board" means the authority's board of directors.
 (3)  "Commission" means the Texas Commission on
 Environmental Quality.
 (4)  "Development board" means the Texas Water
 Development Board.
 (5)  "Director" means a board member.
 (6)  "State" means the State of Texas or any of its
 agencies, departments, boards, political subdivisions, or other
 entities.
 (7)  "Waste" means sewage, industrial waste, municipal
 waste, recreational waste, agricultural waste, waste heat, solid
 waste, or any other waste. (Acts 44th Leg., 1st C.S., Ch. 427,
 Secs. 1.02(1), (2), (4), (6), (7), (8); New.)
 Sec. 8511.0102.  NATURE OF AUTHORITY. (a) The authority is:
 (1)  a conservation and reclamation district under
 Section 59, Article XVI, Texas Constitution; and
 (2)  a municipality.
 (b)  The authority's creation is essential to accomplish the
 purposes of Section 59, Article XVI, Texas Constitution. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 2.01 (part).)
 Sec. 8511.0103.  PURPOSE OF CHAPTER. The purpose of this
 chapter is to provide by the means and in the manner authorized in
 this chapter for the conservation and development of this state's
 natural resources inside the Nueces River Basin, including:
 (1)  the control, storage, preservation, and
 distribution of this state's water for domestic and municipal uses,
 industrial uses, irrigation, mining and recovery of minerals, stock
 raising, underground water recharge, electric power generation,
 navigation, recreation and pleasure, and other beneficial uses and
 purposes;
 (2)  the reclamation and irrigation of arid, semiarid,
 and other land needing irrigation;
 (3)  the reclamation and drainage of overflowed land
 and other land needing drainage;
 (4)  the maintenance and enhancement of the quality of
 the water in the Nueces River Basin;
 (5)  the conservation and development of the forests,
 water, and hydroelectric power;
 (6)  the navigation of inland and coastal water; and
 (7)  the provision of systems, facilities, and
 procedures for the collection, transportation, handling,
 treatment, and disposal of waste. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 1.01.)
 Sec. 8511.0104.  REVIEW SCHEDULE UNDER SUNSET ACT. A review
 of the authority under Section 325.025, Government Code, shall be
 conducted as if the authority were a state agency scheduled to be
 abolished September 1, 2031, and every 12th year after that year.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 1.02A(a) (part).)
 Sec. 8511.0105.  TERRITORY. (a)  The authority is composed
 of the territory described by Section 2.02(a), Chapter 427, Acts of
 the 44th Legislature, 1st Called Session, 1935, as that territory
 may have been modified under:
 (1)  Subsection (c) or its predecessor statute, Section
 2.02(c), Chapter 427, Acts of the 44th Legislature, 1st Called
 Session, 1935;
 (2)  Subchapter J, Chapter 49, Water Code; or
 (3)  other law.
 (b)  The board shall record in the authority's minutes the
 written description of the boundaries in Section 2.02(a), Chapter
 427, Acts of the 44th Legislature, 1st Called Session, 1935.
 (c)  If the directors find any land included in the field
 notes, other than land in San Patricio, Nueces, and Jim Wells
 Counties, that is not actually included in the watershed of the
 Nueces River, the board shall exclude the land from the authority
 and file a certificate of exclusion with the county clerk of the
 county in which the land is located. The certificate of exclusion
 must describe the boundaries of the land excluded so that the land
 remaining in the authority may be adequately identified.
 (d)  The boundaries and field notes of the authority form a
 closure. A mistake in the field notes or in copying the field notes
 in the legislative process does not affect:
 (1)  the authority's organization, existence, or
 validity;
 (2)  the authority's right to issue any type of bond for
 a purpose for which the authority is created or to pay the principal
 of or interest on the bond;
 (3)  the right to impose a tax; or
 (4)  the legality or operation of the authority or its
 governing body. (Acts 44th Leg., 1st C.S., Ch. 427, Secs. 2.02(b),
 (c); Acts 64th Leg., R.S., Ch. 699, Sec. 5; Acts 69th Leg., R.S.,
 Ch. 665, Sec. 3; New.)
 Sec. 8511.0106.  LIBERAL CONSTRUCTION OF CHAPTER. This
 chapter shall be liberally construed to achieve its purposes.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 1.03 (part).)
 SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
 Sec. 8511.0201.  MEMBERSHIP OF BOARD. (a)  The board
 consists of 21 directors appointed by the governor with the advice
 and consent of the senate.
 (b)  Each director must be a qualified voter and a resident
 of a county that is wholly or partly inside the authority as
 described by Section 2.02(a), Chapter 427, Acts of the 44th
 Legislature, 1st Called Session, 1935.
 (c)  Four directors must be residents of Nueces County.  Two
 directors must be residents of San Patricio County.   Two directors
 must be residents of Jim Wells County.
 (d)  Not more than four persons who reside in Nueces County
 and not more than two persons who reside in any other county that is
 wholly or partly inside the authority may be appointed to or serve
 on the board at the same time. (Acts 44th Leg., 1st C.S., Ch. 427,
 Secs. 2.03(a), (b).)
 Sec. 8511.0202.  TERMS. Directors serve staggered terms of
 six years, with one-third of the directors taking office February 1
 of each odd-numbered year. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 2.03(c).)
 Sec. 8511.0203.  REMOVAL. (a)  The governor may remove a
 director from office for:
 (1)  inefficiency;
 (2)  neglect of duty;
 (3)  misconduct in office; or
 (4)  absence from three consecutive regular board
 meetings.
 (b)  Before a director is removed from office, the board
 shall conduct a hearing on the charges against the director, and the
 director is entitled to appear at the hearing and present evidence
 to show why the director should not be removed from office.
 (c)  At least 30 days before the date of the hearing, the
 director shall be given notice of:
 (1)  the charges against the director; and
 (2)  the time and place for the hearing.
 (d)  An affirmative vote of not fewer than 11 of the
 directors is required to approve a removal recommendation.
 (e)  A removal recommendation shall be forwarded to the
 governor for the governor's consideration and action in accordance
 with this section. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 2.03(f).)
 Sec. 8511.0204.  VACANCY. A board vacancy shall be filled in
 the manner provided by Section 8511.0201 for making the original
 appointment. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 2.03(e).)
 Sec. 8511.0205.  BYLAWS. The board shall adopt necessary
 bylaws for the conduct of the authority's business. (Acts 44th
 Leg., 1st C.S., Ch. 427, Sec. 2.03(h).)
 Sec. 8511.0206.  BOND REQUIREMENT FOR DIRECTORS. (a)  As a
 qualification for office, a director must execute a bond in an
 amount determined by the board conditioned on the faithful
 performance of the director's duties.
 (b)  The authority shall pay the premiums on the bond. (Acts
 44th Leg., 1st C.S., Ch. 427, Secs. 2.03(d), 2.08(b) (part).)
 Sec. 8511.0207.  COMPENSATION OF DIRECTORS. (a) A director
 is entitled to receive an allowance in an amount not to exceed that
 provided under Section 49.060, Water Code.
 (b)  A director is not entitled to receive a per diem
 allowance for more than 50 days in a calendar year.
 (c)  In all areas of conflict with this section, Section
 49.060, Water Code, takes precedence.  (Acts 44th Leg., 1st C.S.,
 Ch. 427, Sec. 2.05.)
 Sec. 8511.0208.  OFFICERS. (a)  The governor shall
 designate a director as board president to serve in that capacity at
 the governor's pleasure.
 (b)  The board shall elect one or more vice presidents, a
 secretary, a treasurer, and any other officers as the directors may
 determine in the bylaws or otherwise.
 (c)  Each vice president, the secretary, and the treasurer
 must be a director, but other officers are not required to be
 directors.
 (d)  The offices of secretary and treasurer may be combined,
 and the offices of assistant secretary and assistant treasurer may
 be combined.  (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 2.03(i).)
 Sec. 8511.0209.  COMMITTEES. (a)  The board may appoint or
 establish an executive committee and appoint or provide for the
 appointment of other committees as necessary or desirable to assist
 in conducting the authority's business.
 (b)  Subject to the applicable rules of law on delegation of
 powers, the board may assign or delegate or provide for the
 assignment or delegation of any powers, duties, and functions to
 its committees as the board may prescribe.
 (c)  A committee member who is not a director may not vote on
 a matter coming before the committee unless specifically authorized
 by the board to do so. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 2.06.)
 Sec. 8511.0210.  EXECUTIVE DIRECTOR. (a)  The board may
 employ an executive director and set the executive director's
 salary and other compensation by a majority vote of all the
 qualified directors.
 (b)  The executive director is the authority's chief
 executive officer.
 (c)  Under policies the board and the executive committee
 establish, the executive director is responsible to the board and
 the executive committee for:
 (1)  administering the directives of the board and the
 executive committee;
 (2)  keeping the authority's records, including minutes
 of meetings of the board and the executive committee;
 (3)  coordinating with state, federal, and local
 agencies;
 (4)  developing plans and programs for the approval of
 the board or the executive committee;
 (5)  hiring, supervising, training, and discharging
 the authority's employees, as authorized by the board or the
 executive committee;
 (6)  contracting for or retaining technical,
 scientific, legal, fiscal, and other professional services, as
 authorized by the board or the executive committee; and
 (7)  performing any other duties assigned to the
 executive director by the board or the executive committee.
 (d)  The board may discharge the executive director by a
 majority vote of all the qualified directors. (Acts 44th Leg., 1st
 C.S., Ch. 427, Sec. 2.07.)
 Sec. 8511.0211.  DIRECTOR TRAINING PROGRAM. (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
 board meeting 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 authority operations;
 (2)  the authority's programs, functions, rules, and
 budget;
 (3)  the results of the authority's most recent formal
 audit;
 (4)  the requirements of:
 (A)  laws relating to open meetings, public
 information, administrative procedure, and disclosure of conflicts
 of interest; and
 (B)  other laws applicable to members of the
 governing body of a river authority in performing their duties; and
 (5)  any applicable ethics policies adopted by the
 authority 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 executive director shall create a training manual
 that includes the information required by Subsection (b).  The
 executive director shall distribute a copy of the training manual
 annually to each director.  Each director shall sign and submit to
 the executive director a statement acknowledging that the director
 has received and reviewed the training manual.  (Acts 44th Leg., 1st
 C.S., Ch. 427, Sec. 2.03A.)
 Sec. 8511.0212.  INTEREST IN CONTRACT. (a)  A director who
 is financially interested in a contract to be executed by the
 authority 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
 directors and may not vote on or participate in discussions during
 board meetings on the acceptance of the contract.
 (b)  An interest described by Subsection (a) does not affect
 the validity of a contract if the disclosure is made and the
 interested director does not vote on the question of entering into
 the contract. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 2.04.)
 Sec. 8511.0213.  SEPARATION OF POLICYMAKING AND MANAGEMENT
 FUNCTIONS. The board shall develop and implement policies that
 clearly separate the board's policymaking responsibilities and the
 executive director's and staff's management responsibilities.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 2.08A.)
 Sec. 8511.0214.  PUBLIC TESTIMONY. (a)  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 issue under the authority's jurisdiction.
 (b)  At each regular board meeting, the board shall include
 public testimony as a meeting agenda item and allow members of the
 public to comment on other agenda items and other matters under the
 authority's jurisdiction. The board may not deliberate on or decide
 a matter not included in the meeting agenda, except that the board
 may discuss including the matter on the agenda for a subsequent
 meeting. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 2.06A.)
 Sec. 8511.0215.  DIRECTORS' AND EMPLOYEES' FIDELITY BONDS.
 (a)  The executive director, the treasurer, and each of the
 authority's officers, agents, or employees who is charged with the
 collection, custody, or payment of authority money shall execute a
 fidelity bond.
 (b)  The board must approve the bond's form, amount, and
 surety.
 (c)  The authority shall pay the premiums on the bond. (Acts
 44th Leg., 1st C.S., Ch. 427, Secs. 2.08(a), (b) (part).)
 Sec. 8511.0216.  AUTHORITY'S OFFICE. The authority shall
 maintain its principal office inside its boundaries. (Acts 44th
 Leg., 1st C.S., Ch. 427, Sec. 2.09.)
 Sec. 8511.0217.  COMPLAINTS. (a)  The authority shall
 maintain a system to act promptly and efficiently on complaints
 filed with the authority.
 (b)  The authority shall maintain information about:
 (1)  the parties to the complaint;
 (2)  the subject matter of the complaint;
 (3)  a summary of the results of the review or
 investigation of the complaint; and
 (4)  the complaint's disposition.
 (c)  The authority shall periodically notify the parties to
 the complaint of the complaint's status until final disposition.
 (d)  The authority shall make information available
 describing its procedures for complaint investigation and
 resolution.  (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.27.)
 Sec. 8511.0218.  ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.
 (a)  The board shall develop a policy to encourage the use of
 appropriate alternative dispute resolution procedures under
 Chapter 2009, Government Code, to assist in the resolution of
 internal and external disputes under the authority's jurisdiction.
 (b)  The authority'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 authority shall:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for alternative dispute resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures.  (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.18A.)
 Sec. 8511.0219.  FIVE-YEAR STRATEGIC PLAN. (a)  The
 authority shall adopt and promptly publish on the authority's
 Internet website a written strategic plan that:
 (1)  sets the authority's goals for the following five
 years;
 (2)  establishes the authority's mission; and
 (3)  describes the anticipated activities that the
 authority will perform in the Nueces River Basin over the following
 five years.
 (b)  The authority shall update the strategic plan regularly
 and publish the updated versions of the plan on the authority's
 Internet website. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.28.)
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 8511.0301.  GENERAL POWERS AND DUTIES. (a)  The
 authority shall:
 (1)  administer this chapter; and
 (2)  use its facilities and powers to accomplish the
 purposes of this chapter.
 (b)  The authority may:
 (1)  exercise the powers, rights, privileges, and
 functions in this chapter;
 (2)  exercise all powers, rights, and privileges
 necessary or convenient for accomplishing the purposes of this
 chapter; and
 (3)  perform any other act necessary or convenient to
 the exercise of the powers, rights, privileges, or functions
 conferred by this chapter or other laws.
 (c)  The board may provide for any expenditures it considers
 essential or useful in the authority's maintenance, operation, and
 administration. (Acts 44th Leg., 1st C.S., Ch. 427, Secs. 2.01
 (part), 3.01(a), (b), 3.24.)
 Sec. 8511.0302.  CONTROL AND USE OF WATERS. (a)  The
 authority may exercise power over the storm water and floodwater of
 the Nueces River Basin.
 (b)  The authority may exercise the powers of control and use
 of this state's water in the following manner and for the following
 purposes:
 (1)  to provide for the control and coordination of
 water use in the Nueces River Basin as a unit;
 (2)  to provide for the preservation of the rights of
 the people of the different sections of the Nueces River Basin in
 the beneficial use of water by adequate organization and
 administration;
 (3)  to provide for conserving storm water, floodwater,
 and unappropriated flow water of the Nueces River Basin, including
 the storage, control, transportation, treatment, and distribution
 of that water, and the prevention of the escape of any of that water
 without the maximum of public service;
 (4)  to provide for the prevention of the devastation
 of land from recurrent overflows;
 (5)  to provide for the protection of life and property
 in the Nueces River Basin from uncontrolled floodwater;
 (6)  to provide for the conservation of water essential
 for domestic and other water uses of the people of the Nueces River
 Basin, including all necessary water supplies for municipalities
 and industrial districts;
 (7)  to provide for the irrigation of land in the Nueces
 River Basin where irrigation is required for agricultural purposes
 or may be considered helpful to more profitable agricultural
 production;
 (8)  to provide for the equitable distribution of storm
 water, floodwater, and unappropriated flow water to meet the
 regional potential requirements for all uses;
 (9)  to provide for the encouragement and development
 of drainage systems and provisions for the drainage of land in the
 valleys of the Nueces River and its tributary streams needing
 drainage for profitable agricultural and livestock production and
 industrial activities and the drainage of other land in the
 authority's watershed area requiring drainage for the most
 advantageous use;
 (10)  to provide for the conservation of soil against
 destructive erosion to prevent the increased flood menace incident
 to erosion;
 (11)  to control and make available for use storm
 water, floodwater, and unappropriated flow water as may be
 authorized by the commission in the development of commercial and
 industrial enterprises in all sections of the authority's watershed
 area;
 (12)  to provide for the control, storage, and use of
 storm water, floodwater, and unappropriated flow water in the
 development and distribution of hydroelectric power, if that use
 may be economically coordinated with other and superior uses and
 subordinated to the uses declared by law to be superior; and
 (13)  to provide for each purpose and use for which
 storm water, floodwater, and unappropriated flow water when
 controlled and conserved may be used in the performance of a useful
 service as contemplated and authorized by the provisions of the
 constitution and statutes.
 (c)  The authority may:
 (1)  control, store, and preserve the water of the
 Nueces River and its tributaries inside the authority's boundaries
 for a useful purpose;
 (2)  use, distribute, and sell the water for a
 beneficial purpose inside and outside the authority; and
 (3)  acquire water and water rights inside and outside
 the authority.
 (d)  All plans and works provided by the authority and all
 works that may be provided under the authority's authorization
 should have primary regard to the necessity and potential needs for
 water by or in the respective areas constituting the watershed of
 the Nueces River and its tributary streams. (Acts 44th Leg., 1st
 C.S., Ch. 427, Sec. 3.02.)
 Sec. 8511.0303.  USE OF BED AND BANKS OF NUECES RIVER AND ITS
 TRIBUTARIES. Subject to the commission's approval, the authority
 may use the bed and banks of the Nueces River and its tributary
 streams for any purpose necessary to accomplish the authority's
 plans for storing, controlling, conserving, transporting, and
 distributing storm water, floodwater, and appropriated flow waters
 for useful purposes. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 3.21.)
 Sec. 8511.0304.  MASTER PLAN. (a) The authority shall
 prepare and file with the commission a master plan for the maximum
 development of the soil and water resources of the entire Nueces
 River watershed, including plans for the complete use, for all
 economically beneficial purposes, of the watershed's water
 resources. The authority may amend the master plan as appropriate
 to accomplish the purposes of this section.
 (b)  After the master plan or any amendments to the plan have
 been filed with the commission, notice of the application of any
 person who desires to acquire the right to use state water that is
 in the Nueces River watershed shall be provided to the authority.
 After public hearing as provided by law, the commission may grant or
 deny the proposed application in the manner required by law,
 notwithstanding any contrary provision of the master plan or any
 amendments to the plan.
 (c)  Each work constructed by the authority shall be
 constructed and operated in a manner that, in the greatest
 practicable degree, conforms to the master plan and any amendments
 to the plan.
 (d)  This section may not be construed to interfere with any
 improvement of the Nueces River or its tributaries or with a grant
 or loan in aid of any improvement made by the United States or by
 this state. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.22.)
 Sec. 8511.0305.  WATER CONSERVATION PROGRAM. The board
 shall adopt and implement a program of water conservation that:
 (1)  incorporates the practices, techniques, and
 technologies that will reduce water consumption, reduce water loss
 or waste, improve efficiency in water use, or increase water
 recycling and reuse so that a water supply is available for future
 or alternative uses; and
 (2)  the commission and development board determine
 meets reasonably anticipated local needs and conditions. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 3.22A.)
 Sec. 8511.0306.  FORESTATION AND REFORESTATION. The
 authority may forest, reforest, or aid in foresting or reforesting
 the watershed of the Nueces River and its tributaries. (Acts 44th
 Leg., 1st C.S., Ch. 427, Sec. 3.03.)
 Sec. 8511.0307.  GROUNDWATER. (a) The authority may
 conduct surveys and studies of the groundwater supplies in the
 authority to:
 (1)  determine the location and quantity of groundwater
 available for irrigation and other purposes; and
 (2)  develop and ascertain other information that in
 the authority's judgment may be necessary to fully develop
 irrigation and other water uses from the groundwater in the
 authority.
 (b)  With the approval and under the supervision of the
 commission, the authority may appropriate storm water and
 floodwater to recharge underground freshwater-bearing sand and
 aquifers in the Nueces River Basin.
 (c)  The authority shall cooperate with the Edwards Aquifer
 Authority, or its lawful successor, and any other groundwater
 conservation district inside the authority's boundaries in any
 groundwater recharge project in an area where a groundwater
 conservation district has jurisdiction. (Acts 44th Leg., 1st C.S.,
 Ch. 427, Sec. 3.04.)
 Sec. 8511.0308.  WATER QUALITY CONTROL. (a) The authority
 may exercise the powers vested in a river authority by Chapters 5,
 7, 17, 26, and 30, Water Code, and Chapter 366, Health and Safety
 Code.
 (b)  The authority may perform the licensing and other
 functions authorized to be delegated to a local government by the
 commission in connection with the regulation of private sewage
 facilities under Chapter 366, Health and Safety Code.
 (c)  The authority may serve as the entity to provide
 regional or area-wide waste collection, treatment, and disposal
 systems as provided by Subchapter C, Chapter 26, Water Code. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 3.05.)
 Sec. 8511.0309.  SOLID WASTE SERVICES. The authority may
 acquire, construct, maintain, and provide facilities, equipment,
 and disposal sites to provide solid waste collection,
 transportation, treatment, and disposal services inside the
 authority, charge for the services, and enter into a contract for
 the services with any person. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 3.06.)
 Sec. 8511.0310.  APPLICABILITY OF CERTAIN ENVIRONMENTAL
 LAWS. The authority may exercise the powers and functions vested in
 a river authority by Chapter 383, Health and Safety Code. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 3.26.)
 Sec. 8511.0311.  PARKS AND RECREATIONAL FACILITIES. The
 authority may:
 (1)  acquire land adjacent to or in the vicinity of the
 Nueces River or any of its tributaries for park and recreational
 purposes; and
 (2)  acquire, construct, and maintain park and
 recreational facilities on the land. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 3.07.)
 Sec. 8511.0312.  PERMITS AND LICENSES. In the manner
 provided by Chapters 5, 11, and 12, Water Code, the authority may
 apply for any permit, license, franchise, or other grant of
 authority it may require from the commission, the development
 board, or any other federal, state, or local governmental agency in
 exercising its powers and accomplishing the purposes under this
 chapter. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.08.)
 Sec. 8511.0313.  SERVICE CONTRACTS AND CHARGES. (a) The
 authority may enter into a service contract and may adopt
 resolutions and orders establishing rates and providing for the
 collection of fees and charges for:
 (1)  the sale or use of water;
 (2)  water transmission, treatment, and storage
 facility services;
 (3)  solid and liquid waste collection, treatment, and
 disposal services and facilities;
 (4)  the use of park and recreational facilities;
 (5)  the sale of power and electric energy; and
 (6)  other services or facilities sold, provided, or
 supplied by the authority.
 (b)  The fees and charges must be sufficient to produce
 revenue adequate to:
 (1)  pay expenses necessary for the operation and
 maintenance of the authority's properties and facilities;
 (2)  pay the principal of or the interest on any bonds
 or other obligations issued by the authority when due and payable;
 (3)  fulfill any reserve or other fund obligations of
 the authority in connection with the bonds or other obligations;
 and
 (4)  pay any other expenses the board may consider
 necessary and proper for the authority's operations. (Acts 44th
 Leg., 1st C.S., Ch. 427, Sec. 3.09.)
 Sec. 8511.0314.  USE OF REVENUE AND PROPERTY. The use of any
 authority money or property for any purpose not provided by this
 chapter is prohibited. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 4.06(b).)
 Sec. 8511.0315.  ACQUISITION, MAINTENANCE, AND OPERATION OF
 PROPERTY. The authority may purchase, lease, acquire by gift,
 maintain, use, and operate property of any kind inside or outside
 the authority that is appropriate for the exercise of its
 functions. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.11(a).)
 Sec. 8511.0316.  ACQUISITION, CONSTRUCTION, MAINTENANCE,
 AND OPERATION OF FACILITIES. The authority may acquire in any
 manner, construct, extend, improve, maintain, reconstruct, use,
 and operate facilities inside or outside the authority that are
 necessary or convenient for the exercise of its powers, rights,
 duties, and functions. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 3.12.)
 Sec. 8511.0317.  EMINENT DOMAIN. (a) The authority may
 exercise the power of eminent domain under Chapter 21, Property
 Code, to acquire property of any kind inside or outside the
 authority that is appropriate for the exercise of its functions.
 (b)  The authority's authority under this section to
 exercise the power of eminent domain expired on September 1, 2013,
 unless the authority submitted a letter to the comptroller in
 accordance with Section 2206.101(b), Government Code, not later
 than December 31, 2012. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 3.10; New.)
 Sec. 8511.0318.  COST OF RELOCATING OR ALTERING PROPERTY.
 (a)  In this section, "sole expense" means the actual cost of
 relocating, raising, rerouting, changing the grade of, or altering
 the construction of a facility described by Subsection (b) in
 providing comparable replacement without enhancement of the
 facility, after deducting from that cost the net salvage value
 derived from the old facility.
 (b)  If the authority's exercise of the power of eminent
 domain, the power of relocation, or any other power makes necessary
 relocating, raising, rerouting, changing the grade of, or altering
 the construction of a highway, railroad, electric transmission
 line, telephone or telegraph property or facility, or pipeline, the
 necessary action shall be accomplished at the authority's sole
 expense. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.14.)
 Sec. 8511.0319.  DISPOSITION OF PROPERTY. The authority
 may:
 (1)  sell any property or interest in property of any
 kind owned by the authority by installments or otherwise, including
 a sale in any manner prescribed or permitted by:
 (A)  Chapter 383, Health and Safety Code;
 (B)  Section 552.014, Local Government Code; or
 (C)  Chapter 30, Water Code; or
 (2)  lease, exchange, or otherwise dispose of any
 property described by Subdivision (1) or interest in property.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.11(b).)
 Sec. 8511.0320.  GENERAL CONTRACT POWERS. The authority may
 enter into a contract or execute an instrument that is necessary or
 convenient for the exercise of its powers, rights, duties, and
 functions. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.15(a).)
 Sec. 8511.0321.  AWARD OF CERTAIN CONTRACTS. (a) Any
 construction, maintenance, operation, or repair contract, or
 contract for the purchase of material, equipment, or supplies, or
 any contract for services other than technical, scientific, legal,
 fiscal, or other professional services, which will require an
 estimated expenditure of more than $10,000, or is for a term of six
 months or more, shall be awarded to the lowest and best bidder.
 (b)  In the event of a catastrophe or calamity of any kind,
 the authority may award a contract necessary to protect and
 preserve the public health and welfare or the authority's property
 without using bidding procedures.
 (c)  The authority:
 (1)  shall publish notice:
 (A)  to bidders once each week for three
 consecutive weeks before the date set for awarding the contract;
 and
 (B)  in a newspaper having general circulation in
 the county or counties in which the contract is to be performed; and
 (2)  may publish notice in any other appropriate
 publication.
 (d)  The notice is sufficient if it states the time and place
 when and where the bids will be opened, the general nature of the
 work to be done, or the material, equipment, or supplies to be
 purchased, or the nonprofessional services to be rendered, and
 states the terms upon which copies of the plans, specifications, or
 other pertinent information may be obtained.
 (e)  A person who desires to bid on the construction of any
 advertised work shall, on written application to the authority, be
 provided a copy of the plans and specifications or other
 engineering and architectural documents showing all of the details
 of the work to be done. A charge may be made to cover the cost of
 making the copy.
 (f)  A bid must be:
 (1)  in writing;
 (2)  sealed and delivered to the authority; and
 (3)  accompanied by a certified check drawn on a
 responsible bank in this state or, at the discretion of the
 authority, a bid bond from a company approved by the authority, in
 an amount equal to at least one percent of the total amount bid.
 (g)  The authority shall open bids at the place specified in
 the published notice and shall announce the bids. The place where
 the bids are opened and announced must be open to the public. The
 award of the contract shall be made by:
 (1)  the board; or
 (2)  the executive committee, if authorized by the
 board.
 (h)  The person with whom a contract is made shall provide
 the performance and payment bonds required by law.
 (i)  The amount of a check or bond provided under Subsection
 (f) is forfeited to the authority if the successful bidder fails or
 refuses to:
 (1)  enter into a proper contract; or
 (2)  provide a bond as required by law.
 (j)  The authority may reject any or all bids.
 (k)  The authority may waive any informality in the bids.
 (l)  This section does not prohibit the authority from taking
 the following actions by negotiated contract and without necessity
 for advertising for bids:
 (1)  purchasing or acquiring land or an interest in
 land from any person;
 (2)  acquiring, constructing, or improving pollution
 control or waste collection and disposal facilities in accordance
 with Chapter 30, Water Code, Chapter 383, Health and Safety Code, or
 other applicable statutes; or
 (3)  purchasing or acquiring surplus property from a
 governmental entity. (Acts 44th Leg., 1st C.S., Ch. 427, Secs.
 3.15(b), (c), (d), (e), (f), (h), (i).)
 Sec. 8511.0322.  CONSTRUCTION CONTRACTS: PAYMENT. (a) The
 contract price of any construction contract of the authority may be
 paid in partial payments as the work progresses, but the payments
 may not exceed 90 percent of the amount due at the time of the
 payments as shown by the authority engineer's report.
 (b)  The executive director shall, at all times during the
 progress of the work, inspect the work or have the work inspected by
 the authority engineer or the engineer's assistants.
 (c)  On certification of the executive director and the
 authority engineer of the completion of the contract in accordance
 with its terms and, in the case of any construction contract for
 which notice to bidders is required by Section 8511.0321(c), on
 board approval, the authority shall draw a warrant on its
 depository to pay the balance due on the contract. (Acts 44th Leg.,
 1st C.S., Ch. 427, Sec. 3.15(g).)
 Sec. 8511.0323.  CONFLICT OF INTEREST IN CERTAIN CONTRACTS.
 An officer, agent, or employee of the authority who is financially
 interested in a contract of a type described by Section
 8511.0321(a) shall disclose that fact to the board before the board
 votes on the acceptance of the contract. (Acts 44th Leg., 1st C.S.,
 Ch. 427, Sec. 3.15(j).)
 Sec. 8511.0324.  SURVEYS AND ENGINEERING INVESTIGATIONS.
 The authority shall conduct surveys and engineering investigations
 to develop information for its use. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 3.19 (part).)
 Sec. 8511.0325.  PLANS. The board may:
 (1)  make and determine plans necessary to accomplish
 the purposes for which the authority is created; and
 (2)  perform all actions useful and helpful in carrying
 out the plans described by Subdivision (1) and accomplishing the
 authority's purposes. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.19
 (part).)
 Sec. 8511.0326.  ACCESS TO AUTHORITY PROPERTY. (a)  To
 provide for the safety and welfare of persons and their property or
 for the protection and security of authority property and
 facilities, the board may adopt rules with respect to authority
 property and any water reservoir or dam the construction,
 operation, or management of which is participated in by the
 authority to control and regulate:
 (1)  ingress, egress, and use; and
 (2)  the operation of land and water vehicles.
 (b)  All public roads, streets, and state highways that as of
 September 1, 1975, traversed the areas to be covered by any
 impounded water shall remain open as a way of public passing to and
 from the lakes created, unless changed by lawful authority. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 3.20.)
 Sec. 8511.0327.  LIMITATIONS ON POWERS AND DUTIES;
 COMMISSION APPROVAL OF CERTAIN PLANS. (a)  The powers granted and
 duties prescribed by this chapter are subject to all legislative
 declarations of public policy in the maximum use of the storm water,
 floodwater, and unappropriated flow water of the Nueces River Basin
 for the purposes for which the authority is created.
 (b)  The commission shall consider the adequacy of, and
 approve or refuse to approve, any flood control or conservation
 improvement plan that:
 (1)  is devised by the authority to achieve a plan or
 purpose for which the authority was created; and
 (2)  contemplates improvements that are to be
 supervised by the commission under general law. (Acts 44th Leg.,
 1st C.S., Ch. 427, Secs. 3.25(a) (part), (b).)
 SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
 PROVISIONS
 Sec. 8511.0401.  ADOPTION AND ENFORCEMENT OF RULES. (a)  The
 authority may adopt and enforce rules reasonably required to
 effectuate this chapter.
 (b)  In adopting rules, the board shall comply, as
 appropriate, with the requirements of Chapters 2001 and 2002,
 Government Code.
 (c)  The board shall print its rules and provide copies to
 any person on written request. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 3.16.)
 Sec. 8511.0402.  CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A
 person who violates an authority rule or order is subject to a civil
 penalty of not less than $50 or more than $1,000 for each day of
 violation.
 (b)  The authority may sue to recover the penalty in a
 district court in the county in which the violation occurred. A
 penalty shall be paid to the authority.
 (c)  The authority may sue for injunctive relief in a
 district court in the county in which a violation of a rule or order
 occurred or is threatened.
 (d)  The authority may sue for injunctive relief and a
 penalty in the same proceeding. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 3.17.)
 Sec. 8511.0403.  COURT REVIEW. (a)  A person adversely
 affected by an authority rule or order may sue the authority in a
 district court to set aside the rule or order before the 31st day
 after the date on which the rule or order took effect.
 (b)  Venue for a suit under Subsection (a) is in:
 (1)  a county located wholly or partly in the authority
 in which the plaintiff resides; or
 (2)  the county in which the authority maintains its
 principal office. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 3.18.)
 SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
 Sec. 8511.0501.  DISBURSEMENT OF MONEY. The authority may
 disburse its money only by a check, draft, order, or other
 instrument signed by a person authorized to do so in the board's
 bylaws or by board resolution. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 4.01.)
 Sec. 8511.0502.  ACCOUNTS, CONTRACTS, AND OTHER RECORDS;
 PUBLIC INSPECTION. (a) The authority shall keep complete and
 accurate accounts of its business transactions in accordance with
 generally accepted methods of accounting.
 (b)  The authority shall keep its accounts, contracts,
 documents, minutes, and other records at its principal office.
 (c)  Except as otherwise required by law, the authority may
 not disclose a record that it has relating to a trade secret or the
 economics of operation of business or industry.
 (d)  Except as provided by Subsection (c), the authority
 shall permit reasonable public inspection of its records during
 regular business hours. (Acts 44th Leg., 1st C.S., Ch. 427, Secs.
 2.10(a), (c), (d), (e).)
 Sec. 8511.0503.  FEES AND CHARGES. (a)  The authority shall
 establish fees and charges.
 (b)  The fees and charges may not exceed the amount necessary
 to fulfill the obligations imposed on the authority by this
 chapter. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 4.02.)
 Sec. 8511.0504.  TRUST MONEY. Money collected by or
 donated, granted, loaned, or advanced to the authority is trust
 money for the purposes provided by this chapter. (Acts 44th Leg.,
 1st C.S., Ch. 427, Sec. 4.05.)
 Sec. 8511.0505.  DEPOSITORY. (a)  The board shall designate
 one or more banks inside or outside the authority to serve as a
 depository for authority money.
 (b)  Authority money shall be deposited in a depository
 designated by the board, except that the following may be handled as
 provided in a trust indenture or bond resolution:
 (1)  bond proceeds;
 (2)  money pledged to pay bonds;
 (3)  money placed in special funds; and
 (4)  money remitted to a bank of payment for the payment
 of the principal of and interest on bonds.
 (c)  The board shall prescribe the term of service for a
 depository.
 (d)  Before designating a depository, the board shall:
 (1)  publish notice one time in one or more newspapers
 of general circulation in the authority that are specified by the
 board; or
 (2)  mail a copy of the notice to each bank inside the
 authority.
 (e)  The notice must:
 (1)  state the time and place at which the board will
 meet to designate a depository; and
 (2)  invite the banks inside the authority to submit
 applications to be designated a depository.
 (f)  At the time stated in the notice, the board shall:
 (1)  consider the application and the management and
 condition of each bank that applies; and
 (2)  designate as a depository the bank or banks:
 (A)  that offer the most favorable terms for
 handling authority money; and
 (B)  that the board finds have proper management
 and are in condition to handle authority money.
 (g)  Membership on the board of an officer or director of a
 bank does not disqualify the bank from being designated as a
 depository.
 (h)  If the board does not receive any applications before
 the time stated in the notice, the board shall designate one or more
 banks inside or outside the authority on terms that the board finds
 advantageous to the authority. (Acts 44th Leg., 1st C.S., Ch. 427,
 Secs. 4.09(a) (part), (b), (c), (d).)
 Sec. 8511.0506.  INVESTMENT OF AUTHORITY MONEY; APPLICATION
 OF INCOME FROM INVESTMENTS. (a) Money in the authority's treasury
 that is not required for the current payment of obligations of the
 authority or for sinking funds and that the board considers
 available for investment may be invested or reinvested by the
 authority in:
 (1)  direct obligations of the United States;
 (2)  obligations the principal and interest of which
 are guaranteed by the United States;
 (3)  direct obligations of or participation
 certificates guaranteed by:
 (A)  a farm credit bank;
 (B)  the Federal National Mortgage Association;
 (C)  a federal home loan bank;
 (D)  a bank for cooperatives; or
 (E)  the successor or successors to any of the
 entities listed in this subdivision;
 (4)  certificates of deposit of a bank or trust company
 the deposits of which are fully secured by a pledge of securities of
 any of the kind specified by Subdivision (3);
 (5)  other securities made eligible for investment
 under this section by other laws and constitutional provisions; or
 (6)  a combination of the investments listed in this
 subsection.
 (b)  The board shall determine the type and maturity of
 investments made under this section.
 (c)  A resolution relating to the issuance of bonds must
 provide appropriate recitals with regard to the investment of money
 in funds established in connection with the authorization of the
 bonds.
 (d)  The board shall direct the application of income from
 investments made under this section. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 4.07.)
 Sec. 8511.0507.  FISCAL YEAR. The authority's fiscal year
 ends on August 31 of each year. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 4.08(a).)
 Sec. 8511.0508.  AUDIT. (a) In addition to including the
 information required by Subchapter G, Chapter 49, Water Code, the
 audit report prepared under that subchapter must state:
 (1)  the amount of money received by the authority
 under this chapter during the preceding fiscal year; and
 (2)  how, to whom, and for what purpose the money was
 spent.
 (b)  A copy of the audit report prepared under Subchapter G,
 Chapter 49, Water Code, shall be filed:
 (1)  as required by Section 49.194, Water Code;
 (2)  with the governor;
 (3)  with the lieutenant governor;
 (4)  with the speaker of the house of representatives;
 and
 (5)  with the comptroller. (Acts 44th Leg., 1st C.S.,
 Ch. 427, Secs. 4.08(b) (part), (c); New.)
 SUBCHAPTER F. TAX PROVISIONS
 Sec. 8511.0601.  MAINTENANCE AND ADMINISTRATION TAX. (a)
 The board may impose ad valorem taxes in amounts approved at an
 election held in accordance with Section 8511.0602 for:
 (1)  the maintenance of the authority and its
 improvements; or
 (2)  the authority's administrative expenses.
 (b)  The maintenance tax and administration tax may not
 exceed the maximum rate approved at the election, and the rate
 remains in effect until changed by a subsequent election. The tax
 rate may not exceed the limit specified by Section 8511.0604. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 5.05.)
 Sec. 8511.0602.  ELECTION FOR AD VALOREM TAX OR BONDS
 PAYABLE FROM AD VALOREM TAXES. (a) An ad valorem tax for a purpose
 authorized by this chapter may not be imposed and bonds payable
 wholly or partly from ad valorem taxes, other than refunding bonds,
 may not be issued unless the taxes or bonds are approved by a
 majority of the authority's voters voting at an election held in the
 authority.
 (b)  The election must be ordered by resolution of the board.
 The election resolution must include:
 (1)  the date of the election;
 (2)  the proposition to be submitted and voted on;
 (3)  the polling places; and
 (4)  any other matters the board considers advisable.
 (c)  There must be at least two polling places in each county
 that is wholly inside the authority, one of which must be at the
 county seat. There must be at least one polling place in that part
 of each county that is partly inside the authority.
 (d)  Notice of the election must be given by publishing a
 substantial copy of the resolution ordering the election in one or
 more newspapers of general circulation in the authority. The
 notice must be published at least twice in each newspaper. The
 first publication in each newspaper must occur at least 14 days
 before the date set for the election, and the interval between the
 publications in each newspaper must be at least one week. (Acts
 44th Leg., 1st C.S., Ch. 427, Sec. 5.06 (part).)
 Sec. 8511.0603.  ASSESSMENT AND COLLECTION OF TAXES. (a)
 Concurrently with the imposition of county taxes by the
 commissioners courts, the board shall impose a tax for the
 authority on all taxable property in the authority that is subject
 to taxation. The board shall immediately certify the tax rate to
 the assessor-collector of each county located wholly or partly
 inside the authority.
 (b)  The tax assessor-collector of each county located
 wholly or partly inside the authority shall act as the tax
 assessor-collector for the authority for property in the authority
 located in that county.
 (c)  The fee of each county tax assessor-collector for
 assessing and collecting the authority's taxes may not exceed one
 percent of the taxes collected, to be paid over and disbursed in
 each county in the same manner as other fees of office. (Acts 44th
 Leg., 1st C.S., Ch. 427, Secs. 5.07(b) (part), (c) (part), (f).)
 Sec. 8511.0604.  MAXIMUM TAX RATE. Except as provided by
 Section 8511.0605, the maximum tax rate that may be imposed for any
 year for all purposes is 15 cents on each $100 of assessed valuation
 of taxable property. (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 5.08;
 New.)
 Sec. 8511.0605.  POWERS RELATING TO IMPROVEMENTS PECULIAR TO
 DEFINED AREA. (a)  The authority may exercise the powers specified
 by Sections 51.510 through 51.530, Water Code, relating to
 improvements peculiar to defined areas inside the authority.
 (b)  The tax rate limit specified by Section 8511.0604 does
 not apply with respect to an improvement constructed in exercise of
 a power authorized by this section. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 5.09 (part).)
 SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS
 Sec. 8511.0701.  BORROWING MONEY; GRANTS. (a)  The
 authority may:
 (1)  borrow money or accept a grant or donation for its
 corporate purposes from any person, including a private source, the
 United States, this state, or a local government; and
 (2)  enter into an agreement in connection with a loan,
 grant, or donation accepted under Subdivision (1).
 (b)  The source of any money accepted by the authority is
 public information, both as to amount and any restrictions placed
 by the donor on its expenditure. (Acts 44th Leg., 1st C.S., Ch.
 427, Sec. 4.03.)
 Sec. 8511.0702.  POWER TO APPLY FOR MONEY FOR ENGINEERING
 SURVEYS, INFORMATION COMPILATION AND COLLECTION, AND OTHER
 PURPOSES. (a) The authority may apply to any person, including
 this state and the United States, for money necessary to:
 (1)  secure engineering surveys and the compilation and
 collection of information relating to regional and general
 conditions entering into and influencing the character and extent
 of the improvements necessary to accomplish the storage, control,
 transportation, treatment, conservation, and equitable
 distribution to the greatest public advantage of the floodwater,
 normal flow water, and storm water that is stored and controlled; or
 (2)  accomplish or carry out any purpose of this
 chapter.
 (b)  The authority:
 (1)  shall request an amount it considers sufficient;
 (2)  may make the necessary agreements with the party
 providing the money; and
 (3)  may appropriate the amount of the estimated
 equitable contribution of the costs of developing essential
 engineering information. (Acts 44th Leg., 1st C.S., Ch. 427, Sec.
 4.04.)
 Sec. 8511.0703.  POWER TO ISSUE BONDS. (a) For the purpose
 of carrying out any power conferred by this chapter, including
 preparation of the master plan and payment of engineering and
 related expenses, the authority may issue bonds in three general
 classes:
 (1)  bonds secured by ad valorem taxes;
 (2)  bonds secured by a pledge of all or part of the
 revenue accruing to the authority from any source other than ad
 valorem taxes, including the revenue received from:
 (A)  the sale of water or other products;
 (B)  the rendition of services;
 (C)  tolls; and
 (D)  charges; and
 (3)  bonds secured by a combination pledge of:
 (A)  taxes; and
 (B)  all or part of the revenue described by
 Subdivision (2).
 (b)  The bonds must be authorized by a board resolution.
 (Acts 44th Leg., 1st C.S., Ch. 427, Secs. 5.01(a), (b) (part).)
 Sec. 8511.0704.  FORM OF BONDS. Authority bonds must be:
 (1)  in the form the board prescribes;
 (2)  issued in the authority's name;
 (3)  signed by the president or a vice president; and
 (4)  attested by the secretary. (Acts 44th Leg., 1st
 C.S., Ch. 427, Sec. 5.01(b) (part).)
 Sec. 8511.0705.  MATURITY. Authority bonds must mature not
 later than 50 years after the date of their issuance. (Acts 44th
 Leg., 1st C.S., Ch. 427, Sec. 5.01(b) (part).)
 Sec. 8511.0706.  ELECTION FOR BONDS PAYABLE FROM AD VALOREM
 TAXES. (a) Authority bonds, other than refunding bonds, payable
 wholly or partly from ad valorem taxes may not be issued unless
 authorized by an election at which a majority of the votes cast
 favor the bond issuance. The election must be held in accordance
 with Section 8511.0602.
 (b)  The authority may issue bonds not payable wholly or
 partly from ad valorem taxes without an election. (Acts 44th Leg.,
 1st C.S., Ch. 427, Sec. 5.04.)
 Sec. 8511.0707.  TRUST INDENTURE. Authority bonds may be
 further secured by a trust indenture with a corporate trustee.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 5.01(b) (part).)
 Sec. 8511.0708.  ADDITIONAL BONDS. A pledge of revenue may
 reserve the right, under conditions specified by the pledge, to
 issue additional bonds that will be on a parity with or subordinate
 to the bonds then being issued. (Acts 44th Leg., 1st C.S., Ch. 427,
 Sec. 5.01(c) (part).)
 Sec. 8511.0709.  ADDITIONAL PROVISIONS IN RESOLUTION
 AUTHORIZING BONDS OR TRUST INDENTURE. (a) The resolution
 authorizing the bonds or the trust indenture further securing the
 bonds may specify additional provisions that constitute a contract
 between the authority and its bondholders.
 (b)  The board has full discretion in providing for the
 additional provisions, including the authority to provide for a
 corporate trustee or receiver to take possession of authority
 facilities if the authority defaults in fulfilling the covenants
 made in the resolution or trust indenture. (Acts 44th Leg., 1st
 C.S., Ch. 427, Sec. 5.01(d).)
 Sec. 8511.0710.  REFUNDING BONDS. (a) The authority may
 issue refunding bonds to refund outstanding authority bonds and
 interest on the bonds.
 (b)  Refunding bonds may:
 (1)  be issued to refund bonds of one or more series;
 (2)  combine the pledges for the outstanding bonds for
 the security of the refunding bonds; or
 (3)  be secured by a pledge of other or additional
 revenue.
 (c)  The provisions of this subchapter regarding the
 issuance of other bonds, their security, and the remedies of the
 holders apply to refunding bonds.
 (d)  The comptroller shall register the refunding bonds on
 surrender and cancellation of the bonds to be refunded.
 (e)  Instead of issuing bonds to be registered on the
 surrender and cancellation of the bonds to be refunded, the
 authority, in the resolution authorizing the issuance of the
 refunding bonds, may provide for the sale of the refunding bonds and
 the deposit of the proceeds in a bank at which the bonds to be
 refunded are payable. In that case, the refunding bonds may be
 issued in an amount sufficient to pay the principal of and interest
 on the bonds to be refunded to their option date or maturity date,
 and the comptroller shall register the refunding bonds without the
 concurrent surrender and cancellation of the bonds to be refunded.
 (Acts 44th Leg., 1st C.S., Ch. 427, Sec. 5.02.)
 SECTION 1.04.  WATER CONTROL AND IMPROVEMENT DISTRICT.
 Subtitle I, Title 6, Special District Local Laws Code, is amended by
 adding Chapter 9088 to read as follows:
 CHAPTER 9088. CALHOUN COUNTY WATER CONTROL AND IMPROVEMENT
 DISTRICT NO. 1
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 9088.0101.  DEFINITIONS
 Sec. 9088.0102.  NATURE AND PURPOSE OF DISTRICT
 Sec. 9088.0103.  FINDINGS OF PURPOSE AND BENEFIT
 Sec. 9088.0104.  DISTRICT TERRITORY
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 9088.0201.  WATER CONTROL AND IMPROVEMENT DISTRICT
 POWERS
 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
 Sec. 9088.0301.  TAX METHOD
 CHAPTER 9088. CALHOUN COUNTY WATER CONTROL AND IMPROVEMENT
 DISTRICT NO. 1
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 9088.0101.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "District" means the Calhoun County Water Control
 and Improvement District No. 1 in Calhoun County. (Acts 56th Leg.,
 R.S., Ch. 472, Sec. 1 (part); Acts 71st Leg., R.S., Ch. 518, Sec. 1;
 New.)
 Sec. 9088.0102.  NATURE AND PURPOSE OF DISTRICT. (a) The
 district is:
 (1)  a conservation and reclamation district under
 Section 59, Article XVI, Texas Constitution;
 (2)  a water control and improvement district; and
 (3)  a municipal corporation.
 (b)  The district's sole purpose is reclaiming and draining
 the district's overflowed land and other land needing drainage.
 (Acts 56th Leg., R.S., Ch. 472, Secs. 1 (part), 4 (part).)
 Sec. 9088.0103.  FINDINGS OF PURPOSE AND BENEFIT. (a) The
 district is essential to the accomplishment of the purposes of
 Section 59, Article XVI, Texas Constitution.
 (b)  All land and other property in the district benefit from
 the district and improvements and facilities the district
 constructs and acquires. (Acts 56th Leg., R.S., Ch. 472, Secs. 3
 (part), 4 (part).)
 Sec. 9088.0104.  DISTRICT TERRITORY. The district has the
 area and boundaries described by the board's order adopted on March
 23, 1959, as that area and those boundaries may have been modified
 under:
 (1)  Subchapter J, Chapter 49, Water Code;
 (2)  Subchapter O, Chapter 51, Water Code; or
 (3)  other law. (Acts 56th Leg., R.S., Ch. 472, Sec. 1
 (part); New.)
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 9088.0201.  WATER CONTROL AND IMPROVEMENT DISTRICT
 POWERS. To accomplish the sole purpose of reclaiming and draining
 the district's overflowed land and other land needing drainage, the
 district has all of the rights, powers, privileges, and duties
 provided by general law applicable to a water control and
 improvement district created under Section 59, Article XVI, Texas
 Constitution, including Chapters 49 and 51, Water Code. (Acts 56th
 Leg., R.S., Ch. 472, Sec. 1 (part); New.)
 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
 Sec. 9088.0301.  TAX METHOD. (a) The district shall use the
 ad valorem basis or plan of taxation.
 (b)  The board is not required to hold a hearing on the
 adoption of a plan of taxation. (Acts 56th Leg., R.S., Ch. 472,
 Sec. 3 (part).)
 ARTICLE 2. CONFORMING AMENDMENT
 SECTION 2.01.  NUECES RIVER AUTHORITY. Section 2.02(a),
 Chapter 427, Acts of the 44th Legislature, 1st Called Session,
 1935, is amended to read as follows:
 (a)  The Nueces River Authority [authority] includes all
 counties which lie wholly within the Nueces River Basin, all of San
 Patricio, Nueces, and Jim Wells counties, and generally the
 in-basin parts of other counties, except Webb County, which lie
 partially within the basin. The actual boundaries of the area
 within the authority may be described by metes and bounds as
 follows: Beginning at a point in the boundary of the State of Texas
 offshore of the City of Port Aransas at the Northeast corner of
 Nueces County and the most southerly Southeast corner of Aransas
 County; thence along the common line between Nueces County and
 Aransas County in a westerly and then northerly direction to a point
 in the center of the Intracoastal Canal cutoff between Rockport and
 Aransas Pass, Texas; thence southerly along the centerline of the
 said Intracoastal Canal to its point of intersection with an
 extension of the boundary line between Aransas County and San
 Patricio County for the northernmost Southeast corner of San
 Patricio County and the Southwest corner of Aransas County for an
 angle point; thence along the common line between San Patricio
 County and Aransas County in a northwesterly direction
 approximately 14 miles to a point on the Aransas River on the South
 line of Refugio County for the Northeast corner of San Patricio
 County and the West corner of Aransas County; thence along the
 Aransas River and the common line between Refugio County and San
 Patricio County in a west-northwesterly direction approximately 19
 miles to a point on the Southeast line of Bee County for the
 Southwest corner of Refugio County; thence along the common line
 between Bee County and San Patricio County in a southwesterly
 direction approximately 3 miles to a point for the Southeast corner
 of Bee County; thence along the common line between Bee County and
 San Patricio County in a west-northwesterly direction
 approximately 16 miles to the common corner of Live Oak, Bee, and
 San Patricio Counties; thence in a northwesterly direction with the
 line between Live Oak and Bee Counties approximately 14 miles;
 thence N. approximately 25 miles to the most northern corner of Bee
 County; thence N. 40° W. at approximately 19 1/2 miles the
 Karnes-Wilson Counties line, at about 31 miles a point in the S.W.
 line of Bexar County; thence approximately North 77 1/2° W.
 approximately 28 miles, to the S.W. corner of Bexar County; thence
 N.W. along the northwest extension of the common boundary between
 Bexar and Atascosa Counties 3 1/2 miles to a point; thence N. 30° W.
 approximately 28 miles to a point in the North line of Medina
 County; then North 64° W. approximately 34 miles to a point in the
 west line of Bandera County; thence North approximately 3 miles to
 the northwest corner of Bandera County; thence West with the line of
 Real and Kerr Counties approximately 5 miles to S.W. corner of Kerr
 County; thence North with the line between Kerr and Real Counties
 approximately 13 miles to the N.E. corner of Real County; thence
 West, North and West, with the north line of Real County,
 approximately 18 miles to the Northwest corner of Real County;
 thence South 75° west approximately 15 miles to the Court House in
 Rock Springs in Edwards County; thence N. 68° W. approximately 15
 miles to a point; thence S. 34° W. approximately 19 miles to a point;
 thence S. 35° E. at 21 miles pass a point in the South line of
 Edwards County, 34 miles to a point; thence S. 23 1/2° W.
 approximately 14 miles to a point; thence S. approximately 8 miles
 to Spofford Junction; thence South with the Eagle Pass branch of G.
 H. & S. A. R. R. at 15 miles a point; thence South 12 miles to a
 point; thence S. 41 1/2° E. 42 miles to the village of Dentonia in
 Dimmit County; thence S. 27 1/2 d. E. approximately 10 miles to the
 Dimmit and Webb Counties line; thence E. with said Dimmit-Webb
 County line approximately 25 miles to the west line of La Salle
 County; thence South with west line of La Salle County
 approximately 5 miles to the S.W. corner of La Salle County, a
 common corner with Webb County; thence E. with the Webb-La Salle
 County line approximately 30 miles to the N.E. corner of Webb
 County, the common corner of Webb, La Salle, McMullen and Duval
 Counties; thence S. with the Webb-Duval County line approximately
 27 miles to a point in the E. line of Webb County; thence N. 35 d. E.
 33 miles to a point on the 28 d. North Parallel; thence East along
 the 28 degrees North Parallel approximately 17 miles to a point on
 the East line of Duval County and the West line of Jim Wells County
 for an interior corner; thence along the common line between Duval
 County and Jim Wells County, South approximately 55 miles to a point
 on the North line of Brooks County for the Southwest corner of Jim
 Wells County and the Southeast corner of Duval County; thence along
 the common line between Jim Wells County and Brooks County, East
 approximately 11 miles to a point for the northernmost Southwest
 corner of Kleberg County and the southernmost Southeast corner of
 Jim Wells County; thence along the common line between Jim Wells
 County and Kleberg County, North approximately 25.5 miles to the
 Northwest corner of Kleberg County and an interior corner of Jim
 Wells County; thence along the common line between Jim Wells County
 and Kleberg County, East approximately 7.25 miles to a point in the
 center of San Fernando Creek for the northernmost Southeast corner
 of Jim Wells County and the northernmost Southwest corner of Nueces
 County; thence along the centerline of San Fernando Creek and along
 the common line between Kleberg County and Nueces County in a
 southeasterly direction approximately 9 miles to a point for the
 southernmost Southwest corner of Nueces County; thence along the
 common line between Kleberg County and Nueces County, East
 approximately 32 miles to a point on the shoreline of Laguna Madre
 for an angle point; thence along the common line between Kleberg
 County and Nueces County in an east-northeasterly direction across
 Laguna Madre approximately 5.25 miles to a point on the Northwest
 line of Padre Island for an angle point; thence along the common
 line between Kleberg County and Nueces County in a southeasterly
 direction to a point on the boundary of the State of Texas in the
 Gulf of Mexico off North Padre Island at the Northeast corner of
 Kleberg County and the Southeast corner of Nueces County; thence
 along the boundary of the State of Texas in the Gulf of Mexico and
 along the Southeast line of Nueces County in a northeasterly
 direction to the point of beginning; being all of Live Oak County,
 1116 square miles, McMullen County 1302 square miles, La Salle
 County 1561 square miles, Frio County 1124 square miles, Zavala
 County 1348 square miles, Atascosa County, 1358 square miles, Real
 County 619 square miles, Uvalde County 1589 square miles, San
 Patricio County 680 square miles, Nueces County 838 square miles,
 and Jim Wells County 846 square miles, and parts of the following
 Counties with the number of square miles included in the authority:
 Duval378 square miles.
 Dimmit1200 square miles.
 Maverick574 square miles.
 Kinney602 square miles.
 Medina1113 square miles.
 Bandera224 square miles.
 Edwards922 square miles.
 Bexar84 square miles.
 Wilson98 square miles.
 Karnes85 square miles.
 Bee135 square miles.
 ARTICLE 3. REPEALERS
 SECTION 3.01.  DENTON COUNTY LEVEE IMPROVEMENT DISTRICT NO.
 1 OF DENTON AND DALLAS COUNTIES, TEXAS. The following statutes are
 repealed:
 (1)  Chapter 473, Acts of the 69th Legislature, Regular
 Session, 1985; and
 (2)  Section 6, Chapter 962, Acts of the 80th
 Legislature, Regular Session, 2007.
 SECTION 3.02.  SEBASTIAN MUNICIPAL UTILITY DISTRICT.
 Chapter 516, Acts of the 75th Legislature, Regular Session, 1997,
 is repealed.
 SECTION 3.03.  RED RIVER AUTHORITY OF TEXAS. The following
 statutes are repealed:
 (1)  Chapter 279, Acts of the 56th Legislature, Regular
 Session, 1959;
 (2)  Section 3, Chapter 504 Acts of the 57th
 Legislature, Regular Session, 1961;
 (3)  Section 2, Chapter 570, Acts of the 60th
 Legislature, Regular Session, 1967;
 (4)  Section 2, Chapter 217, Acts of the 64th
 Legislature, Regular Session, 1975;
 (5)  Section 3, Chapter 529, Acts of the 65th
 Legislature, Regular Session, 1977;
 (6)  Section 4, Chapter 86, Acts of the 67th
 Legislature, Regular Session, 1981;
 (7)  Section 3, Chapter 870, Acts of the 67th
 Legislature, Regular Session, 1981;
 (8)  Section 5, Chapter 696, Acts of the 68th
 Legislature, Regular Session, 1983; and
 (9)  Sections 12 and 14, Chapter 23, Acts of the 86th
 Legislature, Regular Session, 2019.
 SECTION 3.04.  NUECES RIVER AUTHORITY. The following
 statutes are repealed:
 (1)  Sections 1.01, 1.02, 1.02A, 1.03, 2.01, 2.02(b)
 and (c), 2.03, 2.03A, 2.04, 2.05, 2.06, 2.06A, 2.07, 2.08, 2.08A,
 2.09, 2.10, 2.11, 2.12, 3.01, 3.02, 3.03, 3.04, 3.05, 3.06, 3.07,
 3.08, 3.09, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17, 3.18,
 3.18A, 3.19, 3.20, 3.21, 3.22, 3.22A, 3.23, 3.24, 3.25, 3.26, 3.27,
 3.28, 4.01, 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 5.01,
 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 5.09, and 5.10, Chapter 427,
 Acts of the 44th Legislature, 1st Called Session, 1935;
 (2)  Sections 2, 3, 4, 5, 6, and 7, Chapter 699, Acts of
 the 64th Legislature, Regular Session, 1975;
 (3)  Section 3, Chapter 665, Acts of the 69th
 Legislature, Regular Session, 1985; and
 (4)  Sections 16 and 18, Chapter 21, Acts of the 86th
 Legislature, Regular Session, 2019.
 SECTION 3.05.  CALHOUN COUNTY WATER CONTROL AND IMPROVEMENT
 DISTRICT NO. 1. The following statutes are repealed:
 (1)  Chapter 472, Acts of the 56th Legislature, Regular
 Session, 1959; and
 (2)  Chapter 518, Acts of the 71st Legislature, Regular
 Session, 1989.
 ARTICLE 4. GENERAL MATTERS
 SECTION 4.01.  LEGISLATIVE INTENT OF NO SUBSTANTIVE CHANGE.
 This Act is enacted under Section 43, Article III, Texas
 Constitution. This Act is intended as a codification only, and no
 substantive change in law is intended by this Act. This Act does
 not increase or decrease the territory of any special district of
 the state as those boundaries exist on the effective date of this
 Act.
 SECTION 4.02.  PRESERVATION OF VALIDATION MADE BY PREVIOUS
 LAW. (a) The repeal of a law, including a validating law, by this
 Act does not remove, void, or otherwise affect in any manner a
 validation under the repealed law. The validation is preserved and
 continues to have the same effect that it would have if the law were
 not repealed.
 (b)  Subsection (a) of this section does not diminish the
 saving provisions prescribed by Section 311.031, Government Code.
 SECTION 4.03.  EFFECTIVE DATE. This Act takes effect April
 1, 2023.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 3530 was passed by the House on April
 30, 2021, by the following vote:  Yeas 139, Nays 2, 2 present, not
 voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 3530 was passed by the Senate on May
 27, 2021, by the following vote:  Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED:  _____________________
 Date
 _____________________
 Governor