By: Guillen H.B. No. 2692
A BILL TO BE ENTITLED
AN ACT
relating to the codification and clarification of local laws
concerning the San Antonio River Authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8513 to read as follows:
CHAPTER 8513. SAN ANTONIO RIVER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8513.0101. DEFINITIONS
Sec. 8513.0102. NATURE OF AUTHORITY
Sec. 8513.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE
Sec. 8513.0104. REVIEW SCHEDULE UNDER SUNSET ACT
Sec. 8513.0105. TERRITORY
Sec. 8513.0106. EFFECT OF CHAPTER ON CERTAIN PERSONS OR
ENTITIES
Sec. 8513.0107. LIBERAL CONSTRUCTION OF CHAPTER
Sec. 8513.0108. CORRECTION OF INVALID PROCEDURES
SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
Sec. 8513.0201. DIRECTORS; TERMS; QUALIFICATIONS
Sec. 8513.0202. DIRECTOR ELECTIONS
Sec. 8513.02025. CERTAIN DIRECTOR TERMS
Sec. 8513.0203. SUSPENSION AND REMOVAL
Sec. 8513.0204. VACANCY
Sec. 8513.0205. BYLAWS
Sec. 8513.0206. ORDINANCES
Sec. 8513.0207. BOND REQUIREMENT FOR DIRECTORS AND OFFICERS
Sec. 8513.0208. FILING OF OATH
Sec. 8513.0209. COMPENSATION OF DIRECTORS
Sec. 8513.0210. CERTAIN INTERESTS PROHIBITED
Sec. 8513.0211. OFFICERS
Sec. 8513.0212. DIRECTOR TRAINING PROGRAM
Sec. 8513.0213. MEETINGS
Sec. 8513.0214. POLICIES TO SEPARATE POLICY-MAKING AND
STAFF FUNCTIONS
Sec. 8513.0215. AGENTS, EMPLOYEES, AND PROFESSIONAL
CONSULTANTS
Sec. 8513.0216. MANAGER
Sec. 8513.0217. AUTHORITY'S DOMICILE AND OFFICE
Sec. 8513.0218. COMPLAINTS
Sec. 8513.0219. PUBLIC TESTIMONY AT BOARD MEETINGS
Sec. 8513.0220. CONTRACT WITH BEXAR COUNTY
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 8513.0301. GENERAL POWERS
Sec. 8513.0302. TITLE AND RIGHT TO CONTROL; TRUST
Sec. 8513.0303. POWERS RELATING TO CONSERVATION AND
BENEFICIAL USE OF WATER
Sec. 8513.0304. POWERS REGARDING CANALS, WATERWAYS, AND
RELATED FACILITIES
Sec. 8513.0305. FEDERALLY CONSTRUCTED OR MAINTAINED
CANALS, WATERWAYS, AND FACILITIES
Sec. 8513.0306. POWER TO CONTROL, DEVELOP, STORE, AND USE
WATER FOR NAVIGATIONAL USE
Sec. 8513.0307. POWERS RELATING TO PARKS, RECREATIONAL
FACILITIES, AND PRESERVATION OF FISH AND WILDLIFE
Sec. 8513.0308. POWERS RELATING TO FLOOD CONTROL AND FLOOD
PLAIN MANAGEMENT
Sec. 8513.0309. ACQUISITION OF WATER OR WATER RIGHTS
Sec. 8513.0310. GENERAL WATER SUPPLY POWERS
Sec. 8513.0311. CONTRACTS TO SUPPLY WATER AND OPERATE
FACILITIES
Sec. 8513.0312. POWERS RELATING TO SOIL CONSERVATION
Sec. 8513.0313. WASTE MANAGEMENT
Sec. 8513.0314. POLLUTION PREVENTION
Sec. 8513.0315. FORESTATION AND REFORESTATION
Sec. 8513.0316. GENERAL AUTHORITY TO MAKE CONTRACTS AND
EXECUTE INSTRUMENTS
Sec. 8513.0317. AWARD OF CERTAIN WATER SUPPLY CONTRACTS
Sec. 8513.0318. AWARD OF CERTAIN CONSTRUCTION AND SERVICE
CONTRACTS
Sec. 8513.0319. ACQUISITION, MAINTENANCE, AND OPERATION OF
PROPERTY; EMINENT DOMAIN
Sec. 8513.0320. PRELIMINARY INVESTIGATIONS AND SURVEYS
Sec. 8513.0321. SALE, LEASE, MORTGAGE, OR OTHER DISPOSITION
OF AUTHORITY PROPERTY
Sec. 8513.0322. OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;
RELOCATION OF ROADS
Sec. 8513.0323. COST OF RELOCATING OR ALTERING PROPERTY
Sec. 8513.0324. CONSTRUCTION, MAINTENANCE, AND OPERATION
OF FACILITIES
Sec. 8513.0325. FRANCHISES AND RIGHTS RELATING TO NAVIGABLE
CANALS AND WATERWAYS
Sec. 8513.0326. CONCESSIONS AND FRANCHISES RELATING TO
WORKS OF IMPROVEMENT, PARKS, RECREATIONAL FACILITIES, AND FISH OR
WILDLIFE PRESERVES AND RESERVES
Sec. 8513.0327. OFFICIAL NEWSPAPER
Sec. 8513.0328. AUTHORITY CONSTABULARY
Sec. 8513.0329. STATE SUPERVISION AND APPROVAL
Sec. 8513.0330. COORDINATION WITH NONPROFIT ORGANIZATION
SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
PROVISIONS
Sec. 8513.0401. ADOPTION OF RULES
Sec. 8513.0402. ENFORCEMENT OF RULES; PENALTY
Sec. 8513.0403. NOTICE OF RULE PROVIDING PENALTY
Sec. 8513.0404. JUDICIAL NOTICE OF RULES
Sec. 8513.0405. RECOVERY OF LITIGATION FEES AND COSTS
Sec. 8513.0406. APPEAL BOND NOT REQUIRED
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8513.0501. OBLIGATION PAYABLE
Sec. 8513.0502. FISCAL YEAR
SUBCHAPTER F. TAX PROVISIONS
Sec. 8513.0601. MAINTENANCE AND ADMINISTRATION TAX
Sec. 8513.0602. ELECTION FOR AD VALOREM TAX
Sec. 8513.0603. PUBLIC HEARING; NOTICE
Sec. 8513.0604. MAXIMUM TAX RATE
Sec. 8513.0605. ASSESSMENT AND COLLECTION OF TAXES
Sec. 8513.0606. LEGISLATIVE INTENT
Sec. 8513.0607. APPLICABILITY
SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS
Sec. 8513.0701. BORROWED MONEY AND GRANTS
Sec. 8513.0702. POWER TO ISSUE BONDS
Sec. 8513.0703. TERMS OF ISSUANCE
Sec. 8513.0704. DEPOSIT OF PROCEEDS
Sec. 8513.0705. RESOLUTION PROVISIONS
Sec. 8513.0706. DEFAULT PROCEDURES
Sec. 8513.0707. POWER OF AUTHORITY TO PURCHASE BONDS ISSUED
BY AUTHORITY
Sec. 8513.0708. BONDS EXEMPT FROM TAXATION
SUBCHAPTER H. POLLUTION CONTROL DISTRICT
Sec. 8513.0801. POWER TO ESTABLISH POLLUTION CONTROL
DISTRICT
Sec. 8513.0802. RESOLUTION PROCEDURES CALLING FOR CREATION
OF POLLUTION CONTROL DISTRICT
Sec. 8513.0803. PUBLIC HEARING ON CREATION OF POLLUTION
CONTROL DISTRICT; NOTICE
Sec. 8513.0804. PUBLIC TESTIMONY ON CREATION OF POLLUTION
CONTROL DISTRICT
Sec. 8513.0805. MAINTENANCE TAX AND BOND ELECTION FOR
POLLUTION CONTROL DISTRICT
Sec. 8513.0806. JUDICIAL REVIEW OF RESOLUTION CALLING FOR
CREATION OF POLLUTION CONTROL DISTRICT
Sec. 8513.0807. FILING REQUIREMENT
Sec. 8513.0808. POLLUTION CONTROL DISTRICT TERRITORY
Sec. 8513.0809. ANNEXATION OF TERRITORY TO POLLUTION
CONTROL DISTRICT
Sec. 8513.0810. POWER TO ISSUE BONDS; TAX FOR POLLUTION
CONTROL DISTRICT
CHAPTER 8513. SAN ANTONIO RIVER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8513.0101. DEFINITIONS. In this chapter:
(1) "Authority" means the San Antonio River Authority.
(2) "Board" means the authority's board of directors.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "Director" means a board member.
(5) "Flood plain" means the area of the channel of a river or
stream and those portions of land abutting and adjacent to the
channel that are reasonably required to carry floodwaters.
(6) "San Antonio River Basin" means all of the area except
for Bandera, Real, and Kerr Counties that has topographic
characteristics causing surface waters to flow into the San Antonio
River and its tributaries.
(7) "State" means the State of Texas or any of its agencies,
departments, boards, political subdivisions, or other entities.
Sec. 8513.0102. NATURE OF AUTHORITY. (a) The authority is
a conservation and reclamation district under Section 59, Article
XVI, Texas Constitution.
(b) The authority's creation is essential to accomplish the
purposes of Section 59, Article XVI, Texas Constitution, including:
(1) construction, maintenance, and operation of
navigable canals and waterways; and
(2) control of the waters of all rivers, streams, and
tributaries of rivers and streams inside the authority.
Sec. 8513.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
All land included in the authority will benefit by the exercise of
power conferred by this chapter.
Sec. 8513.0104. 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, 2035, and every 12th year after that year.
Sec. 8513.0105. TERRITORY. Unless modified under
Subchapter J, Chapter 49, Water Code, or other law, the authority's
territory includes all of that part of this state in the boundaries
of Bexar, Wilson, Karnes, and Goliad Counties.
Sec. 8513.0106. EFFECT OF CHAPTER ON CERTAIN PERSONS OR
ENTITIES. (a) If any power granted to the authority by this chapter
overlaps or conflicts with any power of the Guadalupe-Blanco River
Authority, as created by Chapter 410 (H.B. 138), Acts of the 44th
Legislature, 1st Called Session, 1935, the power granted to the
Guadalupe-Blanco River Authority supersedes the power granted to
the authority by this chapter, unless the Guadalupe-Blanco River
Authority consents to the authority's exercise of the power.
(b) No provision of this chapter divests any person of any
vested:
(1) riparian right;
(2) right derived under an existing permit for the
appropriation and use of public waters issued by the commission; or
(3) right derived under any certified filing with the
commission.
Sec. 8513.0107. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed to effect its purposes.
Sec. 8513.0108. CORRECTION OF INVALID PROCEDURES. If the
board determines that any procedure under this chapter violates the
Texas Constitution or the United States Constitution, the board by
ordinance may provide an alternative procedure that conforms with
the constitution.
SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
Sec. 8513.0201. DIRECTORS; TERMS; QUALIFICATIONS. (a) The
board consists of 12 directors elected as follows:
(1) two directors elected at large from Goliad County;
(2) two directors elected at large from Karnes County;
(3) two directors elected at large from Wilson County;
(4) two directors elected at large from Bexar County;
and
(5) one director elected from each single-member
district representing the four county commissioner precincts in
Bexar County.
(b) Directors serve staggered four-year terms. An elected
director's term begins January 1 following the date of the
director's election.
(c) A director must:
(1) be at least 21 years of age;
(2) reside within the authority;
(3) reside in the county from which the director is
elected or appointed; and
(4) possess the qualifications of a juror.
(d) A director elected from a single-member district must
reside in the district from which the director is elected.
Sec. 8513.0202. DIRECTOR ELECTIONS. (a) The authority
shall hold an election to elect the appropriate number of directors
on the uniform election date in November of each odd-numbered year.
(b) The placing of the names of the candidates on the
ballots shall be determined by lot. A candidate or a designated
representative of the candidate may be present at the drawing.
(c) In the event of a tie for any director position, the
winner shall be determined by a majority of the board.
(e) Directors serving from single-member districts at the
time new single-member districts are adopted shall serve for the
remainder of the terms to which they were elected regardless of the
redistricting.
Sec. 8513.02025. CERTAIN DIRECTOR TERMS. (a) This section
applies only to the term of a director who is appointed or elected
on or after May 24, 2023.
(b) The two at-large director positions for Bexar County
shall be scheduled for election on the November uniform election
date in 2023. The person who receives the highest number of votes
shall be elected to the first at-large Bexar County director
position and shall serve a four-year term beginning January 1,
2024, and ending December 31, 2027. An election shall be scheduled
for that position on the November uniform election date in 2027 and
every four years thereafter. The person who receives the second
highest number of votes shall be elected to the second at-large
Bexar County director position and shall serve a two-year term
beginning January 1, 2024, and ending December 31, 2025. An
election shall be scheduled for that position on the November
uniform election date in 2025 and every four years thereafter for a
four-year term beginning on January 1 of the year following each
election.
(c) The following director positions shall be scheduled for
election on the November uniform election date in 2025 and every
four years thereafter, and the directors elected to each position
shall serve four-year terms beginning January 1 of the year
following each election:
(1) the single-member district director elected from
Bexar County commissioners court precinct 1;
(2) the single-member district director elected from
Bexar County commissioners court precinct 2;
(3) the at-large director position for Karnes County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2019;
(4) the at-large director position for Goliad County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2019; and
(5) the at-large director position for Wilson County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2019.
(d) The following director positions shall be scheduled for
election on the November uniform election date in 2027 and every
four years thereafter, and the directors elected to those director
positions shall serve four-year terms beginning January 1 of the
year following each election:
(1) the single-member district director elected from
Bexar County commissioners court precinct 3;
(2) the single-member district director elected from
Bexar County commissioners court precinct 4;
(3) the at-large director position for Karnes County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2021;
(4) the at-large director position for Goliad County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2021; and
(5) the at-large director position for Wilson County
for which an election was held, or scheduled to be held but canceled
because of an unopposed candidate, in November 2021.
(e) The members of the board of directors serving in the
director positions described by Subsections (b), (c), and (d) on
May 23, 2023, shall continue to serve until their successors have
been elected and qualified.
(f) This section expires September 1, 2029.
Sec. 8513.0203. SUSPENSION AND REMOVAL. (a) A director or
officer may be suspended or removed from office for:
(1) incompetency;
(2) official misconduct;
(3) official gross negligence;
(4) habitual drunkenness; or
(5) nonattendance at six consecutive regular board
meetings.
(b) A director or officer may not be suspended or removed
from office unless:
(1) charges against the director or officer are filed
in writing; and
(2) the director or officer is given an opportunity
for a fair hearing before the board.
(c) An affirmative vote of not fewer than eight of the
directors is required to suspend or remove a director or officer.
Sec. 8513.0204. VACANCY. The governor, with the advice and
consent of the senate, shall fill a vacancy on the board for the
unexpired term.
Sec. 8513.0205. BYLAWS. The board shall adopt bylaws for
the management of the authority's affairs.
Sec. 8513.0206. ORDINANCES. (a) The board may, by a
majority and to the extent necessary to exercise the authority's
powers and rights, adopt an ordinance:
(1) not adequately provided by Chapters 49 or 51,
Water Code;
(2) germane and appropriate to the accomplishment and
purposes of this chapter; and
(3) consistent with a specific power conferred on a
county, municipality, water improvement district, water control
and improvement district, drainage district, navigation district,
canal corporation, channel and dock corporation, deep water
corporation, railway corporation, terminal railway corporation,
telegraph and telephone corporation, or other similar entity.
(b) The board is not required to provide notice before
adopting an ordinance, except as otherwise required for a regular
or special board meeting.
(c) The board:
(1) shall file an adopted ordinance in the authority's
official records; and
(2) may, if the board considers it necessary and
proper:
(A) file certified copies of the ordinance in the
office of the county clerk in each county in the authority where the
ordinance applies; or
(B) publish the ordinance at least once per week
for two weeks in a newspaper of general circulation in each county
where the ordinance applies.
(d) An adopted ordinance takes effect after the filing
requirements of Subsection (c) are met.
(e) After an ordinance takes effect, the county clerk shall
file and record all certified copies of the ordinance in the county.
The county clerk shall charge the same fee for filing and recording
the ordinance as for recording a deed of conveyance.
(f) An ordinance granting a power or mode of procedure
adopted under this section does not limit the accomplishment of the
purposes of this chapter.
Sec. 8513.0207. BOND REQUIREMENT FOR DIRECTORS AND
OFFICERS. (a) Not later than the 15th day after the date of
election or appointment, a director or officer shall file a good and
sufficient bond with the board secretary.
(b) The bond must be:
(1) in the amount of $5,000;
(2) payable to the authority;
(3) conditioned on the faithful performance of duties
as a director or officer; and
(4) subject to approval by the board secretary.
Sec. 8513.0208. FILING OF OATH. Before assuming the duties
of office, each director shall file with the board secretary a copy
of the constitutional oath of office taken by the director.
Sec. 8513.0209. COMPENSATION OF DIRECTORS. (a) A director
is entitled to receive reimbursement for reasonable expenses and an
allowance as provided under Section 49.060, Water Code.
(b) A director is not entitled to receive a per diem
allowance for more than 60 days in a fiscal year.
(c) In all areas of conflict with this section, Section
49.060, Water Code, takes precedence.
Sec. 8513.0210. CERTAIN INTERESTS PROHIBITED. (a) A
director may not engage in a transaction with the authority for gain
or profit.
(b) An officer of the authority may not have any interest,
direct or indirect, in any contract awarded by the authority.
Sec. 8513.0211. OFFICERS. (a) The board shall appoint by
majority vote a chair, a vice-chair, a secretary, a treasurer, and
other officers or assistant officers the board considers necessary.
(b) The chair, the vice-chair, the secretary, and the
treasurer must each be a director. Assistant officers are not
required to be directors.
(c) An officer shall serve a term of two years.
(d) A non-director assistant officer:
(1) holds office at the pleasure of the board; and
(2) may be granted limited powers in the authority
bylaws.
(e) The authority may appoint officers, prescribe their
duties, and set their compensation.
Sec. 8513.0212. DIRECTOR TRAINING PROGRAM. (a) A person
who is elected or 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 scope of and limitations on the rulemaking
authority of the board;
(4) the results of the authority's most recent formal
audit;
(5) 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
(6) any applicable ethics policies adopted by the
authority or the Texas Ethics Commission.
(c) A person elected or 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 manager of the authority shall create a training
manual that includes the information required by Subsection (b).
The manager shall distribute a copy of the training manual annually
to each director. Each director shall sign and submit to the manager
a statement acknowledging that the director has received and
reviewed the training manual.
Sec. 8513.0213. MEETINGS. (a) Regular and special board
meetings shall be held as provided by general law and the bylaws.
(b) Notice of regular and special board meetings shall be
given as required by general law and the bylaws.
(c) All meetings of the board shall be open to the public.
Sec. 8513.0214. POLICIES TO SEPARATE POLICY-MAKING AND
STAFF FUNCTIONS. The board shall develop and implement policies
that clearly separate the board's policy-making responsibilities
and the management responsibilities of the manager and authority
staff.
Sec. 8513.0215. AGENTS, EMPLOYEES, AND PROFESSIONAL
CONSULTANTS. (a) The authority may appoint agents, employees, and
professional consultants, prescribe their duties, and set their
compensation.
(b) An agent, employee, or professional consultant may not
have any interest, direct or indirect, in any contract awarded by
the authority.
Sec. 8513.0216. MANAGER. (a) The board may employ a
manager to be the authority's chief executive officer.
(b) The board shall set the compensation to be paid to the
manager.
(c) The manager shall employ and supervise, subject to
policies promulgated by the Board, all employees, agents,
accountants, attorneys, engineers and others rendering
professional services to the authority. The manager may execute on
behalf of the authority, without specific board authorization, a
contract for which competitive bidding is not required. The manager
may execute any other contract with specific board authorization.
Sec. 8513.0217. AUTHORITY'S DOMICILE AND OFFICE. The
general office and place of domicile of the authority shall be in
the City of San Antonio, Bexar County.
Sec. 8513.0218. 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
unless the notice would jeopardize an investigation.
(d) The authority shall make information available
describing its procedures for complaint investigation and
resolution.
Sec. 8513.0219. PUBLIC TESTIMONY AT BOARD MEETINGS. 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 jurisdiction of the authority.
Sec. 8513.0220. CONTRACT WITH BEXAR COUNTY. (a) This
section applies only to a contract between the authority and the
Commissioners Court of Bexar County entered into before May 26,
1961, to finance the construction of certain flood control and soil
conservation works of improvement in Bexar County.
(b) Except as provided by Subsection (c), the authority may
not spend any income or revenue derived from the contract for a
purpose other than a purpose specifically provided for by the
contract.
(c) The board may allocate a reasonable amount of income or
revenue derived from the contract to pay for:
(1) authority overhead costs;
(2) operational costs; and
(3) fees of directors who reside in Bexar County.
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 8513.0301. GENERAL POWERS. (a) The authority shall:
(1) administer this chapter; and
(2) use the authority's 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, privileges, and
functions 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, and functions
conferred by this chapter or other law.
(c) The authority has the powers and rights and is subject
to the regulations for government and procedure contained in
Chapters 49 and 51, Water Code.
(d) The authority may spend any amount reasonably necessary
or expedient for seeking cooperation from the federal government or
any other person in accomplishing the purposes of this chapter.
Sec. 8513.0302. TITLE AND RIGHT TO CONTROL; TRUST. (a) The
authority is vested with such title and right of control to the
extent the state has, or may have, title and right of control of:
(1) the natural bed and banks of the entirety of the
San Antonio River;
(2) a tributary of the San Antonio River inside the
authority; and
(3) the natural beds and banks of any navigable stream
or tributary inside the authority.
(b) The authority's title and right of control shall be in
trust for the accomplishment of the purposes of this chapter.
(c) The authority may use or dispose of land or rights,
including any proceeds, income, revenue, or trading values received
from the use or disposition, that may be reasonably required for or
aid the accomplishment of the purposes of this chapter.
Sec. 8513.0303. 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:
(1) effectuate:
(A) the construction, maintenance, and operation
of navigable canals or waterways;
(B) flood control;
(C) the conservation and use of ground, storm,
flood, and unappropriated flow waters in the authority for all
beneficial purposes;
(D) irrigation;
(E) soil conservation;
(F) sewage treatment;
(G) pollution prevention; and
(H) forestation and reforestation;
(2) encourage and develop parks and recreational
facilities;
(3) preserve fish; and
(4) do all things that are required to accomplish the
purposes of this section.
(b) The powers described by Subsection (a) are subject only
to:
(1) the legislature's policy declarations regarding
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.
(c) The authority shall store and conserve to the greatest
beneficial use the storm, flood, and unappropriated flow waters of
any river or stream or tributary of a river or stream within the
authority to prevent the escape of water without maximum beneficial
use inside or outside the authority's boundaries.
Sec. 8513.0304. POWERS REGARDING CANALS, WATERWAYS, AND
RELATED FACILITIES. The authority may:
(1) promote, construct, maintain and operate, make
practicable, 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 San Antonio River, where
practicable, and then traversing a route the authority may find to
be more feasible and practicable to connect the San Antonio River
with any new navigable canals to be constructed in the lower reaches
of the San Antonio River or to connect the San Antonio River with
the Gulf Intracoastal Waterway, the San Antonio Bay, or the Gulf of
Mexico;
(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) navigable canals or waterways; and
(B) all navigational systems and facilities auxiliary
to navigable canals or waterways; and
(3) in the case of construction of navigable canals or
waterways and all auxiliary navigational systems or facilities by
the federal government or otherwise:
(A) construct, maintain, and operate lateral
connecting canals and turning basins to serve local needs; and
(B) provide, construct, acquire, take over, maintain,
operate, develop, lease, regulate, or by franchise control wharves,
docks, warehouses, grain elevators, bunkering facilities, belt or
terminal railroads, floating plants, lighterage, towing
facilities, and all other facilities incident to or in aid of the
efficient operation and development of canals or waterways and all
navigational systems or auxiliary facilities and ports, whether on
land or water.
Sec. 8513.0305. 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 San Antonio River is taken over by the federal
government or an agency of the federal government, 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.
Sec. 8513.0306. 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 San
Antonio 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.
Sec. 8513.0307. POWERS RELATING TO PARKS, RECREATIONAL
FACILITIES, AND PRESERVATION OF FISH AND WILDLIFE. (a) The
authority may acquire:
(1) additional land adjacent to a permanent
improvement constructed inside the authority for the purpose of
developing parks or recreational facilities; and
(2) necessary rights-of-way to construct, operate,
and maintain roads necessary for ingress and egress to an area
described by Subdivision (1) or to a fish or wildlife preserve or
reserve.
(b) The authority may provide recreational facilities and
services and may enter into a contract or agreement with any person
for the operation or maintenance of a park or recreational
facility.
(c) The preservation of fish shall be in accordance with any
rules prescribed by the Parks and Wildlife Department.
Sec. 8513.0308. POWERS RELATING TO FLOOD CONTROL AND FLOOD
PLAIN MANAGEMENT. (a) The authority shall prevent and aid in the
prevention of damage to persons and property by the overflow of any
rivers, streams, or tributaries of those rivers and streams within
the authority.
(b) The authority may study, designate, and regulate flood
plains within the authority.
Sec. 8513.0309. ACQUISITION OF WATER OR WATER RIGHTS. (a)
The authority may acquire water appropriation permits or certified
filings within or outside the authority directly from the
commission or from permit owners.
(b) The authority may purchase water, water supply
facilities, or conservation storage capacity from any person.
Sec. 8513.0310. GENERAL WATER SUPPLY POWERS.
(a) The authority, inside or outside its boundaries, may:
(1) construct, acquire, equip, acquire storage rights
at, operate, or maintain a dam or reservoir;
(2) construct, operate, maintain, or otherwise
provide water supply lines, water purification, and water pumping
systems and facilities;
(3) provide water supply for municipalities,
including selling water and standby service to any person;
(4) provide water for irrigation of lands and the
development of commercial and industrial enterprises; and
(5) acquire storage capacity in any dam constructed or
to be constructed by or with the assistance of this state or the
United States from any person, this state, or the United States.
(b) The authority may bring water into the authority.
(c) It is the intent of this chapter that the authority is
primarily concerned with the conservation, control, storage,
distribution, and sale of water in bulk quantities in the public
interest and only incidentally with the retail sale of water
insofar as it does not compete with municipal water distributors
and then only when necessary or convenient as a service to the
public.
Sec. 8513.0311. CONTRACTS TO SUPPLY WATER AND OPERATE
FACILITIES. (a) The authority may contract with a user of water
inside or outside the authority for services for which the
authority may charge, including standby service and delivery of
water.
(b) The authority may contract with any person in the manner
provided by Section 552.020, Local Government Code, for:
(1) constructing:
(A) reservoirs;
(B) dams;
(C) water supply lines; and
(D) water purification and pumping facilities;
and
(2) furnishing water supply service.
(c) A contract under Subsection (b) may provide for the
operation, maintenance, and ownership of property subject to the
contract.
Sec. 8513.0312. POWERS RELATING TO SOIL CONSERVATION.
(a) The authority may act as a local sponsoring agent for or
otherwise aid and supplement upstream soil and water conservation
and flood prevention projects authorized by a state or federal
agency in conjunction with a soil and water conservation district.
(b) The authority may make arrangements satisfactory to the
United States Secretary of Agriculture to defray the cost of
maintaining or operating a project under Subsection (a). An
arrangement made under this section must be in accordance with
regulations presented by the secretary of agriculture.
(c) Any portion of the total construction costs of a project
described by Subsection (a) allocable to flood control or soil
conservation shall be paid for or financed by money originating in
the county in which the project is situated. The money may be of any
kind, except from a tax imposed under Subchapter F.
Sec. 8513.0313. WASTE MANAGEMENT. (a) As a necessary aid
to the conservation, control, preservation, purification, and
distribution of surface and ground waters within the authority, the
authority may, within the San Antonio River Basin:
(1) construct, own, operate, maintain, or otherwise
provide sewage gathering, treatment, and disposal services,
including solid waste disposal services;
(2) charge for services described by Subdivision (1);
and
(3) make contracts with counties, municipalities, and
others regarding services described by Subdivision (1) or charges
described by Subdivision (2).
(b) The authority may not exercise the powers described by
Subsection (a) in Kerr, Real, or Bandera County unless consented to
by a majority vote of the commissioners court of that county.
Sec. 8513.0314. POLLUTION PREVENTION. (a) The authority
may study, correct, and control pollution, including natural,
artificial, organic, inorganic, and thermal pollution, of the
groundwater and surface water within the San Antonio River Basin.
(b) The authority may not adopt or enforce an ordinance
regarding pollution in any county outside the authority's
boundaries.
Sec. 8513.0315. FORESTATION AND REFORESTATION. The
authority may forest, reforest, or aid in foresting or reforesting
of all areas within the authority.
Sec. 8513.0316. GENERAL AUTHORITY TO MAKE CONTRACTS AND
EXECUTE INSTRUMENTS. The authority may enter into a contract or
execute an instrument necessary or convenient to exercising a
power, right, privilege, or function conferred on the authority by
this chapter.
Sec. 8513.0317. AWARD OF CERTAIN WATER SUPPLY CONTRACTS.
(a) This section applies to:
(1) a wholesale contract for:
(A) the sale, purchase, procurement,
distribution, or supply of water or conservation storage capacity;
or
(B) construction of a navigable canal or
waterway; or
(2) a contract authorized under Section 561.003, Local
Government Code.
(b) Before entering into a contract under this section, the
manager shall publish notice describing the general nature of the
contract in a newspaper of general circulation in each county
within the authority where the contract is to have effect.
(c) The board may consider and act on a contract at any
regular board meeting following the last date of publication of
notice required under this section.
(d) The board shall confirm or ratify a contract by a
majority vote.
(e) A contract may be the sole basis or a supplement to the
basis for securing a bond of the authority.
Sec. 8513.0318. AWARD OF CERTAIN CONSTRUCTION AND SERVICE
CONTRACTS. (a) The board shall award any construction,
maintenance, operation, or repair contract, contract for the
purchase of material, equipment, or supplies, or contract for
services if the contract will require an estimated expenditure of
more than the maximum amount for which competitive bidding is
required by Chapter 49, Water Code, to the lowest and best bidder.
(b) The board:
(1) shall:
(A) before awarding a contract under this
section, publish notice to bidders once each week for two
consecutive weeks; and
(B) adopt bylaws for the publication of notice to
bidders and any related procedures; and
(2) may prescribe the amount of estimated expenditures
subject to competitive bidding.
(c) In the event of an emergency, 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.
(d) A director is ineligible to submit a bid for a contract
under this section.
(e) Notwithstanding this section, the authority may:
(1) purchase surplus property from the United States
by negotiated contract and without advertising for bids; and
(2) use any procurement method under:
(A) Chapter 49, Water Code; or
(B) other applicable general law.
(f) This section does not apply to a purchase contract, a
procurement contract, or a contract described by Section 49.278,
Water Code.
Sec. 8513.0319. ACQUISITION, MAINTENANCE, AND OPERATION OF
PROPERTY; EMINENT DOMAIN. (a) The authority may acquire by
purchase, lease, gift, or any other manner and maintain, use, and
operate property of any kind inside or outside the authority
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 (b).
(b) The authority may exercise the power of eminent domain
in the manner provided by the general law applicable to a district
created under Section 59, Article XVI, Texas Constitution.
(c) 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.
Sec. 8513.0320. PRELIMINARY INVESTIGATIONS AND SURVEYS.
(a) The authority may make preliminary investigations and surveys
in the manner and for the purposes specified in Chapters 49 and 51,
Water Code, or other applicable general law.
(b) The authority may make a preliminary investigation or
survey independently at its own cost or jointly with others or may
contribute to the cost of a preliminary investigation or survey
made by another.
(c) For purposes of procuring cooperation by the federal
government, any project lawfully within the scope of the purposes
of this chapter may be approved for construction as a federal
project under such contractual terms as may be demanded by the
United States Congress.
Sec. 8513.0321. SALE, LEASE, MORTGAGE, OR OTHER DISPOSITION
OF AUTHORITY PROPERTY. (a) The authority may not:
(1) mortgage or otherwise encumber authority property
of any kind, or any interest in authority property; or
(2) acquire any property or interest in property
subject to a mortgage or conditional sale.
(b) Subsection (a) does not prevent pledging authority
revenue or income of any kind, except an ad valorem tax imposed by
the authority under Section 8513.0601.
(c) This chapter does not authorize the sale, lease, or
other disposition of authority property of any kind, or an interest
in authority property, by the authority or a receiver of any
authority property unless authorized under this chapter or
applicable general law.
(d) Notwithstanding Subsection (c), the authority may sell
or otherwise dispose of authority property of any kind, or an
interest in authority property, if the board, by the affirmative
vote of a majority of members of the board present at a regular or
special meeting, determines that the property or interest is not
convenient to the business of the authority and is surplus.
(e) The board shall publish notice of a proposed sale once
each week for two consecutive weeks in a newspaper of general
circulation in the county or counties where the property or
interest is located if:
(1) the appraised value of the property or interest
exceeds $5,000; and
(2) the property or interest is not partial or total
consideration in a transaction for the exchange of property.
(f) Authority property is exempt from forced sale. The sale
of authority property under a judgment rendered in a suit is
prohibited.
Sec. 8513.0322. OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;
RELOCATION OF ROADS. The authority may overflow and inundate any
public land or public property and require the relocation of a road
or highway in the manner and to the extent permitted to a district
organized under general law pursuant to Section 59, Article XVI,
Texas Constitution.
Sec. 8513.0323. 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 railroad or street railway,
the necessary action shall be accomplished at the authority's sole
expense.
Sec. 8513.0324. CONSTRUCTION, MAINTENANCE, AND OPERATION
OF FACILITIES. The authority may construct, extend, improve,
maintain, and reconstruct, cause to be constructed, extended,
improved, maintained, and reconstructed, and use and operate
facilities of any kind necessary or convenient to the exercise of
the authority's powers, rights, privileges, and functions.
Sec. 8513.0325. FRANCHISES AND RIGHTS RELATING TO NAVIGABLE
CANALS AND WATERWAYS. (a) The authority may grant a franchise or
right to any person for the use of navigable canals or waterways and
all auxiliary navigational systems or facilities to aid navigation
of navigable canals or waterways of the San Antonio River.
(b) Unless granted a franchise by the authority, a person
may not provide, maintain, or operate a facility of aid of
navigation connected with a navigable canal or waterway described
by Subsection (a) or an auxiliary navigational system or facility
that is intended for public use.
(c) The board may grant a franchise by ordinance. A
franchise:
(1) may not exceed a term of 50 years; and
(2) may be for the design, construction, repair,
enlargement, alteration, maintenance, operation of, and service
from or use of any facility to be provided for use in navigation on
navigable canals or waterways and all auxiliary navigational
systems or facilities, whether on land or in or on water.
(d) An ordinance granting a franchise:
(1) must:
(A) contain provisions:
(i) adequate to regulate the fees, tolls,
rates, or exactions to be demanded for the use of, or service to be
rendered by any means or facility to be provided or operated under,
the franchise; and
(ii) reasonably required to procure service
adequate to serve the public necessity and convenience; and
(B) be uniform, reasonable, and without
discrimination against any person with regard to any charges or
conditions of use or service; and
(2) may:
(A) contain provisions for the payment of
reasonable fees or other charges to be paid to the authority; and
(B) provide reasonable and commensurate
penalties as provided by Section 49.004, Water Code, to procure
observance of the conditions of a franchise granted or compliance
with the rules established by the ordinance.
(e) The board may:
(1) require uniform and adequate analytic accounting
systems and forms and periodic reports based on those systems and
forms;
(2) audit a franchise holder;
(3) provide for other reasonable regulations designed
to protect the public; and
(4) by ordinance:
(A) establish rules necessary or designed to:
(i) protect physical property owned by the
authority or owned or operated by a franchise holder; or
(ii) effect the safety or efficient use of
property described by Subparagraph (i); and
(B) provide for reasonable and commensurate
penalties for a violation of this section, as provided by Section
49.004, Water Code.
(f) Unless otherwise provided, a franchise granted under
this section may only be revoked or suspended by order of a district
court within the county in which the authority may maintain its
general office.
Sec. 8513.0326. CONCESSIONS AND FRANCHISES RELATING TO
WORKS OF IMPROVEMENT, PARKS, RECREATIONAL FACILITIES, AND FISH OR
WILDLIFE PRESERVES AND RESERVES. The authority my grant to any
person a concession or franchise on the premises of any work of
improvement, park, recreational facility, or fish or wildlife
preserve or reserve.
Sec. 8513.0327. OFFICIAL NEWSPAPER. The authority may
designate an official newspaper in each county in the authority. An
official newspaper must have general circulation in the county in
which the newspaper is situated.
Sec. 8513.0328. AUTHORITY CONSTABULARY. (a) The authority
may constitute and maintain an independent constabulary.
(b) A constabulary constituted under this section is
subject to the oath and bond requirements of a county sheriff under
Section 85.001, Local Government Code.
(c) A constabulary shall police authority property and
facilities controlled by the authority.
(d) A constabulary may make arrests:
(1) to prevent injury to authority property and
facilities controlled by the authority or for a violation of a penal
ordinance of the authority; and
(2) inside or outside the authority, upon complaint or
indictment for a violation of a penal ordinance of the authority.
Sec. 8513.0329. STATE SUPERVISION AND APPROVAL. (a) The
commission shall cooperate with the authority to:
(1) make investigations and plans; and
(2) to the extent provided by Subsection (b), approve
investigations and plans for improvements provided by the
authority.
(b) This section applies only to commission approval of
plans that are appropriate under general law.
(c) Except for a plan regarding the use of water that is
permitted by the state, a plan for improvements adopted by the
federal government controls.
Sec. 8513.0330. COORDINATION WITH NONPROFIT ORGANIZATION.
(a) In this section, "affiliated nonprofit organization" means a
nonprofit organization:
(1) created by the authority; or
(2) for which the authority, board, or authority
employees have a right to appoint one or more of the members of the
nonprofit organization's governing body.
(b) The authority may contract or otherwise coordinate with
a nonprofit organization, including an affiliated nonprofit
organization, to accomplish the purposes of the authority.
(c) Directors may not constitute a majority of the board of
directors or other governing body of an affiliated nonprofit
organization. An authority employee may not serve on the board of
directors or other governing body of an affiliated nonprofit
organization.
(d) The board shall develop a policy regarding fund-raising
activities of a nonprofit organization that enters into a contract
or otherwise coordinates with the authority. The policy must:
(1) include acceptable and prohibited fund-raising
activities;
(2) specify how fund-raising is conducted and
supervised; and
(3) include criteria for seeking and selecting
corporate sponsors to ensure that sponsorships serve the public
interest and are consistent with the purposes of the authority.
(e) A memorandum of understanding between the authority and
an affiliated nonprofit organization entered into under this
section must include the policy developed under Subsection (d).
SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW
PROVISIONS
Sec. 8513.0401. ADOPTION OF RULES. The authority may by
ordinance adopt reasonable rules to:
(1) carry out this chapter;
(2) protect and secure authority property and works of
improvement; and
(3) regulate pollution, residence, hunting, fishing,
boating, and camping, and any other recreational and business
privileges on any navigable river or reservoir in the authority or
on any land owned by the authority.
Sec. 8513.0402. ENFORCEMENT OF RULES; PENALTY. The
authority by rule may prescribe reasonable and commensurate
penalties for the violation of an authority rule, as provided by
Section 49.004, Water Code.
Sec. 8513.0403. NOTICE OF RULE PROVIDING PENALTY. (a) If
the authority adopts a rule that provides a penalty, the authority
must publish a substantive statement of the rule and the penalty
once a week for two consecutive weeks in a newspaper of general
circulation in each county in which the rule applies.
(b) The substantive statement must be as condensed as
possible so that the act prohibited by the rule can be easily
understood.
(c) The statement may include notice of any number of rules.
(d) The notice must state that:
(1) a person who violates the rule is subject to a
penalty; and
(2) the rule is on file in the authority's principal
office, where the rule may be read by any interested person.
(e) A rule takes effect five days after the date of second
publication of the statement under this section.
Sec. 8513.0404. JUDICIAL NOTICE OF RULES. A court shall
take judicial notice of a rule adopted under this subchapter and
published as required by Section 8513.0403.
Sec. 8513.0405. RECOVERY OF LITIGATION FEES AND COSTS.
Section 49.004, Water Code, governs recovery of fees for attorneys,
expert witnesses, and other court costs incurred by the authority
in any suit by the authority to enforce its rules.
Sec. 8513.0406. APPEAL BOND NOT REQUIRED. The authority is
not required to give bond on any appeal from judgment in any court.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8513.0501. OBLIGATION PAYABLE. A debt, liability, or
obligation of the authority for the payment of money, however
entered into or incurred and whether arising from an express or
implied contract or otherwise, is payable solely:
(1) out of the revenue received by the authority with
respect to its properties; or
(2) from any other money or income from any source
coming into the authority's possession, including proceeds of sale
of bonds.
Sec. 8513.0502. FISCAL YEAR. The authority's fiscal year
ends on September 30 of each year.
SUBCHAPTER F. TAX PROVISIONS
Sec. 8513.0601. MAINTENANCE AND ADMINISTRATION TAX. (a)
The authority may impose ad valorem taxes throughout the territory
of the authority in amounts approved at an election held in
accordance with Section 8511.0602 for:
(1) the maintenance of the authority and its
improvements;
(2) general administration; or
(3) planning and other services with respect to any of
the purposes, rights, privileges, and functions of the authority.
(b) An ad valorem tax imposed by the authority may not:
(1) be used to pay for or finance:
(A) the construction of a dam, reservoir, levee,
channel, pipeline, or other major physical work of the authority;
(B) the cost or expenses of a right-of-way
acquisition; or
(C) damages awarded by a court for a suit brought
under Section 17, Article I, Texas Constitution; or
(2) be pledged to the issue or redemption of bonds
authorized under Section 8513.0702.
(c) The maintenance tax and administration tax may not
exceed the maximum rate approved at the election. The tax rate may
not exceed the limit specified by Section 8513.0604.
Sec. 8513.0602. ELECTION FOR AD VALOREM TAX. (a) The board
may impose an ad valorem tax within the maximum tax rate for a
purpose authorized by this chapter if the taxes are approved at an
election held in the authority by a majority of the votes cast:
(1) throughout the authority; and
(2) in any three counties in the authority.
(b) The election must be ordered by ordinance of the board.
The ordinance must include for each applicable county in the
authority the polling places in that county where the election is to
be held.
Sec. 8513.0603. PUBLIC HEARING; NOTICE. (a) If the board
orders an election under Section 8513.0602, the board must hold a
public hearing in each county in the authority to discuss the
proposed tax issue.
(b) Each public hearing must be held:
(1) not fewer than 10 days before the date of the
scheduled election; and
(2) not more than 25 days before the date of the
scheduled election.
(c) Notice of the public hearing must be given by publishing
the notice in at least one newspaper of general circulation in each
county where the hearing is to be held. The notice must:
(1) be published at least 10 days before the date of
the hearing; and
(2) include the time, day, date, place, and purpose of
the hearing.
Sec. 8513.0604. MAXIMUM TAX RATE. The maximum tax rate that
may be imposed for any year under this subchapter is two cents on
each $100 of assessed valuation of taxable property.
Sec. 8513.0605. ASSESSMENT AND COLLECTION OF TAXES.
(a) The authority's tax rate shall be uniform throughout the
authority. The chair and secretary of the board shall certify the
tax rate to the assessor-collector of each included county.
(b) It shall be the duty of each county tax
assessor-collector in the authority to cause to be placed on the
county tax rolls such additional column or columns as are needed to
show the tax levied by the authority and the amount thereof. The
fee of each county tax assessor-collector for assessing and
collecting the authority's taxes may not exceed two percent of the
taxes collected, to be paid over and disbursed in each county in the
same manner as other fees of office.
Sec. 8513.0606. LEGISLATIVE INTENT. It is the intent of the
legislature that:
(1) an ad valorem tax imposed by the authority:
(A) enables the authority to accomplish its
purposes, including the maximum development of the authority's soil
and water resources, it being hereby found and determined that the
benefits to be realized from the maximum development can be
obtained only through area-wide participation and planning; and
(B) may be used to pay for the operation, repair,
or maintenance of any flood control, soil conservation, watershed
protection, or erosion structure or work of improvement constructed
in cooperation with the federal government, provided that any
operation, repair, or maintenance cost shall be paid for out of
taxes thus collected in the county in which the particular
structure or work of improvement is situated; and
(2) the construction of any dam, reservoir, levee,
channel, pipeline, or other major physical work of the authority
shall be paid for or financed by revenue bonds of the authority to
be redeemed either by the sale of services or by taxes to be imposed
by a county or municipality and paid over to the authority as an
independent contractor of the county or municipality.
Sec. 8513.0607. APPLICABILITY. This subchapter does not
apply to the assessment of a tax under Subchapter H.
SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS
Sec. 8513.0701. BORROWED MONEY AND GRANTS. (a) The
authority may:
(1) borrow money for the authority's corporate
purposes;
(2) execute proper notes and other evidence of
indebtedness;
(3) borrow money or accept a grant from the United
States or this state and, in connection with the loan or grant,
enter into any agreement the United States or the corporation or
agency may require;
(4) make and issue bonds for money borrowed, in the
manner and to the extent provided by Sections 8513.0702, 8513.0703,
8513.0704, 8513.0705, and 8513.0706; and
(5) participate in and be the beneficiary of any plan
that may be evolved by this state or the United States for
guaranteeing or otherwise subsidizing the authority's obligations.
(b) After an ad valorem tax is approved at an election held
under Section 8513.0602, the board may borrow money payable from
the tax and may evidence the loan by a note given in the authority's
name.
Sec. 8513.0702. POWER TO ISSUE BONDS. (a) For the purpose
of constructing improvements related to the exercise of any power
conferred on the authority by law, the authority may, without an
election, issue bonds secured by a pledge of revenues of the
authority without reference to their source and with the priority
of liens prescribed in the proceedings authorizing the issuance of
the bonds.
(b) The bonds must be authorized by a board resolution
concurred in by at least eight directors.
Sec. 8513.0703. TERMS OF ISSUANCE. Authority bonds may be:
(1) sold for cash;
(2) issued on terms the board determines in exchange for any
property, or any interest in property, that the board considers
necessary or convenient for the corporate purpose for which the
bonds are issued; or
(3) issued in exchange for principal amounts or other
obligations of the authority, whether matured or unmatured.
Sec. 8513.0704. DEPOSIT OF PROCEEDS. The proceeds of sale
of authority bonds may be deposited in one or more banks or trust
companies and may be paid out according to the terms on which the
authority and the purchasers of the bonds agree.
Sec. 8513.0705. RESOLUTION PROVISIONS. (a) A resolution
authorizing bonds may contain provisions approved by the board that
are not inconsistent with this chapter, including provisions:
(1) reserving the right to redeem the bonds at a time,
in an amount, and at a price not to exceed 105 percent of the
principal amount of the bonds, plus accrued interest;
(2) providing for the setting aside of sinking funds
or reserve funds and the regulation and disposition of those funds;
(3) securing the payment of the principal of and
interest on the bonds and of the sinking fund or reserve fund
payments associated with the bonds by pledging all or any part of
the gross or net revenue subsequently received by the authority
from any source;
(4) prescribing the purposes to which the bonds or any
bonds subsequently issued, or the proceeds of the bonds, may be
applied;
(5) agreeing to set and collect rates and charges
sufficient to produce net revenue adequate to pay the items
described by Subdivisions (1), (2), and (3), and prescribing the
use and disposition of all revenue;
(6) prescribing limitations on the issuance of
additional bonds and on the agreements that may be made with the
purchasers and successive holders of those bonds;
(7) regarding the construction, extension,
improvement, reconstruction, operation, maintenance, and repair of
the authority's properties and the carrying of insurance on all or
any part of those properties covering:
(A) loss, damage, or loss of use and
reconstruction, operation, maintenance, and repair; and
(B) loss, damage, or loss of use and occupancy
resulting from specified risks;
(8) setting the procedure by which the authority may
change the terms of a contract with the bondholders, the amount of
bonds the holders of which must consent to that change, and the
manner in which the consent may be given; and
(9) providing for the execution and delivery by the
authority to a bank or trust company authorized by law to accept
trusts, or to the United States or any officer of the United States,
of indentures and agreements for the benefit of the bondholders
setting forth any of the agreements authorized by this chapter to be
made with or for the benefit of the bondholders and any other
provisions that are customary in such indentures or agreements.
(b) A provision authorized by this section that is contained
in a bond resolution is part of the contract between the authority
and the bondholders.
Sec. 8513.0706. DEFAULT PROCEDURES. (a) This section
applies only to a default in:
(1) the payment of the interest on bonds as the
interest becomes due and payable;
(2) the payment of the principal of bonds as they
become due and payable, whether at maturity, by call for
redemption, or otherwise; or
(3) the performance of an agreement made with the
purchasers or successive holders of bonds.
(b) A resolution authorizing bonds and any indenture or
agreement entered into under the resolution may provide that in the
event of a default described by Subsection (a) that continues for a
period, if any, prescribed by the resolution, the trustee under the
indenture entered into with respect to the bonds authorized by the
resolution, or, if there is no indenture, a trustee appointed in the
manner provided in the resolution by the holders of 25 percent in
aggregate principal amount of the bonds authorized by the
resolution and then outstanding, and on the written request of the
holders of 25 percent in aggregate principal amount of the bonds
authorized by the resolution then outstanding, shall, in the
trustee's own name, but for the equal and proportionate benefit of
the holders of all of the bonds, and with or without having
possession of the bonds:
(1) by mandamus or other suit, action, or proceeding
at law or in equity, enforce all rights of the bondholders;
(2) bring suit on the bonds or the appurtenant
coupons;
(3) by action or suit in equity, require the authority
to account as if it were the trustee of an express trust for the
bondholders;
(4) by action or suit in equity, enjoin any acts or
things that may be unlawful or in violation of the rights of the
bondholders; or
(5) after such notice to the authority as the
resolution may provide, declare the principal of all of the bonds
due and payable, and if all defaults have been made good, then with
the written consent of the holders of 25 percent in aggregate
principal amount of the bonds then outstanding, annul the
declaration and its consequences.
(c) Notwithstanding Subsection (b), the holders of more
than a majority in principal amount of the bonds authorized by the
resolution and then outstanding, by written instrument delivered to
the trustee, are entitled to direct and control any and all action
taken or to be taken by the trustee under this section.
(d) A resolution, indenture, or agreement relating to bonds
may provide that in a suit, action, or proceeding under this
section, the trustee, whether or not all of the bonds have been
declared due and payable and with or without possession of any of
the bonds, is entitled to the appointment of a receiver who may:
(1) enter and take possession of all or any part of the
properties of the authority;
(2) operate and maintain the properties;
(3) set, collect, and receive rates and charges
sufficient to provide revenue adequate to pay the items specified
by Sections 8513.0705(a)(1), (2), and (3) and the costs and
disbursements of the suit, action, or proceeding; and
(4) apply the revenue in conformity with this chapter
and the resolution authorizing the bonds.
(e) In a suit, action, or proceeding by a trustee under this
section, the reasonable fees, attorney's fees, and expenses of the
trustee and of the receiver, if any, constitute taxable
disbursements, and all costs and disbursements allowed by the court
are a first charge on any revenue pledged to secure the payment of
the bonds.
(f) The courts of Bexar County have jurisdiction of a suit,
action, or proceeding by a trustee on behalf of the bondholders and
of all property involved in the suit, action, or proceeding.
(g) In addition to the powers specifically provided by this
section, a trustee has all powers necessary or appropriate for the
exercise of the powers specifically provided or incident to the
general representation of the bondholders in the enforcement of
their rights.
Sec. 8513.0707. POWER OF AUTHORITY TO PURCHASE BONDS ISSUED
BY AUTHORITY. (a) Using any money available for the purpose, the
authority may purchase bonds issued by it at a price not exceeding
the redemption price applicable at the time of purchase, or, if the
bonds are not redeemable, at a price not exceeding the principal
amount of the bonds plus accrued interest.
(b) All bonds purchased under this section shall be
canceled, and bonds may not be issued in lieu of those bonds.
Sec. 8513.0708. BONDS EXEMPT FROM TAXATION. A bond issued
under this chapter and the interest on the bond are exempt from
taxation, except inheritance taxes, by this state or by any
political subdivision of this state.
SUBCHAPTER H. POLLUTION CONTROL DISTRICT
Sec. 8513.0801. POWER TO ESTABLISH POLLUTION CONTROL
DISTRICT. (a) The authority may establish one or more pollution
control districts for the purpose of accomplishing any of the
powers, purposes, rights, or privileges vested in the authority.
(b) A pollution control district may be established by
resolution of the board.
Sec. 8513.0802. RESOLUTION PROCEDURES CALLING FOR CREATION
OF POLLUTION CONTROL DISTRICT. (a) A resolution of the board
calling for the creation of a pollution control district must:
(1) define the boundaries of the proposed district;
and
(2) set a time and place for a public hearing on the
matters described in the resolution.
(b) If the authority does not intend to issue bonds on
behalf of the proposed district, in addition to the requirements of
Subsection (a), the resolution must declare taxes for the
maintenance of the authority and the authority's improvements shall
be imposed on the taxable property in the proposed district.
(c) If the authority intends to issue bonds on behalf of the
proposed district, in addition to the requirements of Subsection
(a), the resolution must:
(1) estimate the principle amount and state the
purpose of those bonds; and
(2) declare that taxes for the payment of bonded
indebtedness shall be imposed exclusively on the taxable property
in the proposed district.
(d) The board may adopt resolutions described by
Subsections (b) and (c) and hold public hearings for those
resolutions and any applicable proposed bond and maintenance taxes
at the same time.
(e) After a public hearing is held in accordance with
Section 8513.0803, the board shall review any findings and
recommendations resulting from the hearing. The board may alter,
modify, or change any provision of the resolution, except as
provided by Section 8513.0809. The board may adopt a resolution
creating the proposed pollution control district. The resolution
creating a pollution control district must:
(1) state the purposes for which the proposed district
has been created;
(2) designate the proposed district's boundaries;
(3) declare that the indebtedness to be incurred or
the cost of services to be rendered by the authority for the
proposed district's benefit shall be payable from taxes imposed on
property in the district;
(4) find that the property in the proposed district
will benefit from the indebtedness proposed to be incurred or the
services proposed to be rendered by the authority on the district's
behalf; and
(5) order an election in the proposed district to
authorize the indebtedness or maintenance tax, stating:
(A) the date of the election;
(B) the proposition or propositions to be voted
on;
(C) the location of the polling places; and
(D) the names of the election officers.
Sec. 8513.0803. PUBLIC HEARING ON CREATION OF POLLUTION
CONTROL DISTRICT; NOTICE. (a) The authority must hold a public
hearing on the matters set forth in a resolution calling for the
creation of a pollution control district before the proposed
district is established.
(b) The hearing may be held in connection or concurrently
with another public hearing, meeting, or proceeding conducted by
the board.
(c) The hearing must be held within the boundaries of the
proposed pollution control district.
(d) The hearing may be conducted by:
(1) a majority of the board;
(2) one or more directors; or
(3) one or more authority employees, as designated by
the board.
(e) If the hearing is conducted by fewer than a majority of
directors in accordance with Subsection (d)(2) or (3), the
individual or individuals conducting the hearing may accept
evidence and make recommendations to the board on any proposed
changes to the resolution.
(f) Notice of the hearing must be published in a newspaper
of general circulation within the boundaries of the proposed
pollution control district not more than 30 days before the date of
the hearing and not fewer than 15 days before the date of the
hearing. Except as otherwise provided by this section, Chapter
551, Government Code, applies to notice of a public hearing under
this section.
Sec. 8513.0804. PUBLIC TESTIMONY ON CREATION OF POLLUTION
CONTROL DISTRICT. (a) A hearing on the matters set forth in a
resolution calling for the creation of a pollution control district
must include an opportunity for:
(1) any interested person, including a person who owns
property or resides in the authority, to appear and present
evidence relevant to a matter set forth in the resolution calling
for the creation of the proposed district; and
(2) a person who resides or owns property in the
boundaries of the proposed district to appear and present evidence
regarding whether the person will receive benefits from the
proposed improvements or tax.
(b) Failure to appear at the public hearing constitutes a
waiver of all objections that the absent person might have had to
any matters set forth in the resolution calling for the creation of
the proposed pollution control district.
Sec. 8513.0805. MAINTENANCE TAX AND BOND ELECTION FOR
POLLUTION CONTROL DISTRICT. An election ordered within the
boundaries of a proposed pollution control district to authorize
the imposition of a maintenance tax or the issuance of bonds may be
held at the same time as any general or special election.
Sec. 8513.0806. JUDICIAL REVIEW OF RESOLUTION CALLING FOR
CREATION OF POLLUTION CONTROL DISTRICT. (a) A resolution of the
board calling for the creation of a pollution control district
adopted under Section 8513.0802(e) is final and not subject to
judicial review except on the basis of whether the resolution is
supported by substantial evidence.
(b) An action or proceeding questioning, contesting, or
denying the validity of a resolution calling for the creation of a
pollution control district or any related proceeding must be
brought within 30 days of the effective date of the resolution. If
an action or proceeding is not brought within the 30 days, the
resolution and any related proceedings are valid and incontestable.
Sec. 8513.0807. FILING REQUIREMENT. A resolution of the
board creating a pollution control district adopted under Section
8513.0802(e) shall be filed in the deed records of each county in
the district's territory.
Sec. 8513.0808. POLLUTION CONTROL DISTRICT TERRITORY.
(a) A pollution control district may include any territory,
whether or not contiguous, in the authority.
(b) If any portion of the territory of a proposed pollution
control district falls within the boundaries or the exclusive
extraterritorial jurisdiction of a municipality, the board must
obtain the municipality's consent before creating the proposed
district. Consent of a municipality:
(1) may contain any conditions agreed on by the
authority and the municipality; and
(2) shall be evidenced by an enacted ordinance of the
municipality's governing body.
Sec. 8513.0809. ANNEXATION OF TERRITORY TO POLLUTION
CONTROL DISTRICT. (a) Territory may be annexed to an existing
pollution control district in the manner provided by this section.
(b) The board may annex territory under this section by
resolution of the board or by a petition requesting annexation. The
petition must:
(1) to the extent practicable, set forth the matters
described in a resolution calling for the creation of the pollution
control district, as described by Section 8513.0802(b) or (c);
(2) request a public hearing by the board on the
petition; and
(3) be signed by:
(A) the owners of 50 percent or more of the value
of the territory to be annexed;
(B) a majority of the residents of the territory
to be annexed; or
(C) if fewer than three registered voters reside
in the territory to be annexed, by the owner or owners of the
territory.
(c) The board shall hold a public hearing on the petition in
the same manner as a public hearing under Section 8513.0803.
(d) If the board finds that the territory should be annexed,
the board may adopt a resolution:
(1) ordering an election on the annexation:
(A) in the territory contained in the existing
pollution control district; and
(B) in the territory to be annexed; or
(2) if the petition for annexation was brought under
Subdivision (b)(3)(C), annexing the territory to the district.
(e) Except as provided by Subsection (f), the board may not
annex the territory until a majority of registered voters:
(1) in the territory of the existing pollution control
district are in favor of annexation; and
(2) in the territory to be annexed to the pollution
control district are in favor of annexation and, if applicable, in
favor of:
(A) allowing a maintenance tax on the land to be
annexed;
(B) assuming the pro rata share of any previously
authorized indebtedness of the existing district; or
(C) allowing any taxes necessary to support tax
or tax-revenue bonds previously voted on that have not yet been
issued on behalf of the existing pollution control district and
authorizing the board to impose a tax on the property for payment of
the unissued bonds when those bonds are issued.
(f) A resolution of the board annexing territory adopted
under Subsection (d)(2) is temporary until a majority of registered
voters in an election held in the pollution control district
including the annexed territory are in favor of:
(1) annexing the territory;
(2) ratifying any unissued tax or revenue bonds of the
authority to be issued on behalf of the district; and
(3) authorizing the board to impose within the
district a maintenance tax or a tax to pay for any unissued bonds
when issued.
(g) If a majority of registered voters in an election held
under Subsection (d) or (f) are in favor of the annexation, the
board shall adopt a resolution redefining the boundaries of the
pollution control district and record the resolution in the deed
records of each county containing the annexed territory.
Sec. 8513.0810. POWER TO ISSUE BONDS; TAX FOR POLLUTION
CONTROL DISTRICT. (a) The board may:
(1) incur any indebtedness necessary to provide all
improvements and the maintenance of those improvements required to
achieve the purposes for which any pollution control district is
organized;
(2) impose taxes necessary for the payment of the
interest of any bonds issued under this section; and
(3) create a sinking fund for the payment of bonds
issued under this section.
(b) Taxes imposed under this section are a lien on the
property assessed for the payment of the taxes.
(c) If the majority of votes in an election held under
Section 8513.0805 or 8513.0809 are in favor of authorizing the
authority to incur indebtedness for the benefit of a pollution
control district, the board may issue bonds for that purpose.
(d) If the board issues bonds under Subsection (c), the
board may impose a tax only on property in the pollution control
district to pay the principal or interest of the bonds.
(e) If the majority of votes in an election held under
Section 8513.0805 or 8513.0809 are in favor of authorizing the
authority to impose an ad valorem tax, the board may impose the tax
only on property in the pollution control district.
(f) The exercise by the board of its authority to tax and
issue bonds for a pollution control district must be consistent
with its authority under Chapter 49 and 51, Water Code, and this
subchapter. If a conflict exists between Chapter 49 and 51, Water
Code, and a provision of this subchapter, this subchapter prevails.
SECTION 2. The following statutes are repealed:
(1) Chapter 276, Acts of the 45th Legislature, Regular
Session, 1937;
(2) Chapter 9, Acts of the 46th Legislature, Regular
Session, 1939;
(3) Chapter 60, Acts of the 53rd Legislature, Regular
Session, 1953;
(4) Chapter 504, Acts of the 55th Legislature, Regular
Session, 1957;
(5) Chapter 37, Acts of the 56th Legislature, Regular
Session, 1959;
(6) Chapter 233, Acts of the 57th Legislature, Regular
Session, 1961;
(7) Chapter 836, Acts of the 61st Legislature, Regular
Session, 1969;
(8) Chapter 301, Acts of the 64th Legislature, Regular
Session, 1975;
(9) Chapter 604, Acts of the 64th Legislature, Regular
Session, 1975;
(10) Chapter 60, Acts of the 67th Legislature, Regular
Session, 1981;
(11) Chapter 701, Acts of the 70th Legislature,
Regular Session, 1987; and
(12) Sections 1(b)(13) and Section 15, Chapter 1148,
Acts of the 84th Legislature, Regular Session, 2015; and
(13) Chapter 179, Acts of the 88th Legislature,
Regular Session, 2023.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.