CHAPTER 6903. EASTLAND COUNTY WATER SUPPLY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE B. FRESH WATER SUPPLY DISTRICTS
CHAPTER 6903. EASTLAND COUNTY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6903.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Commissioners court" means the Commissioners Court of
Eastland County.
(3) "Director" means a member of the board.
(4) "District" means the Eastland County Water Supply District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.002. NATURE OF DISTRICT. The district is created
under Section 59, Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All
land in the district will benefit from the improvement to be
acquired and constructed by the district.
(b) The accomplishment of the purposes stated in this chapter is
for the benefit of the people of this state and for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 6903.051. DISTRICT TERRITORY. The district is composed of
the territory in the city of Ranger on May 26, 1949, and the
territory in the city of Eastland that was added to the district
before June 8, 1953. The district's territory may have been
modified under:
(1) this subchapter or its predecessor statute, Section 5,
Chapter 465, Acts of the 51st Legislature, Regular Session, 1949;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.052. AUTHORITY TO ANNEX TERRITORY. Territory, whether
contiguous to the district or not, and inside or outside Eastland
County, may be annexed to the district in the manner provided by
this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.053. PETITION FOR ANNEXATION; BOARD FINDINGS AND
RESOLUTION. (a) The board may annex territory under this
subchapter if a petition requesting annexation is signed by 50
registered voters of the territory to be annexed who own taxable
property in that territory, or a majority of the registered
voters of that territory who own taxable property in that
territory, and is filed with the board. The petition must
describe the territory to be annexed by metes and bounds, or
otherwise, except that if the territory is the same as that
contained in a municipality, the petition is sufficient if it
states that the territory to be annexed is the territory
contained in the municipality.
(b) If the board determines that the petition complies with
Subsection (a), that the annexation would be in the interest of
the district, and that the district will be able to supply water
to the territory, the board shall adopt a resolution:
(1) stating the conditions, if any, under which the territory
may be annexed to the district; and
(2) requesting the commissioners court to annex the territory to
the district.
(c) A certified copy of the resolution and petition shall be
filed with the commissioners court.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.054. COMMISSIONERS COURT RESOLUTION; HEARING. The
commissioners court shall:
(1) adopt a resolution declaring its intention to call an
election in the territory to submit the proposition of whether
the territory is to be annexed to the district; and
(2) set a time and place to hold a commissioners court hearing
on the question of whether the territory to be annexed will
benefit from the improvements, works, and facilities then owned
or operated or contemplated to be owned or operated by the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.055. ANNEXATION HEARING. (a) At least 10 days before
the date of the annexation hearing, notice of the adoption of the
resolution stating the time and place of the hearing and
addressed to the citizens and owners of property in the territory
to be annexed shall be published one time in a newspaper
designated by the commissioners court. The notice must describe
the territory in the same manner in which Section 6903.053(a)
requires the petition to describe the territory.
(b) If a newspaper is not published in the territory to be
annexed, the notice shall be posted in three public places in the
territory.
(c) Any interested person may appear at the hearing and offer
evidence for or against the annexation.
(d) The hearing may proceed in the order and under the rules
prescribed by the commissioners court and may be recessed from
time to time.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.056. COMMISSIONERS COURT FINDINGS AND RESOLUTION;
ELECTION. If, at the conclusion of the annexation hearing, the
commissioners court finds that all land in the territory to be
annexed will benefit from the present or contemplated
improvements, works, or facilities of the district, the court
shall adopt a resolution that:
(1) calls an election in the territory to be annexed; and
(2) states the date of the election and the place or places of
holding the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.057. NOTICE OF ANNEXATION ELECTION. In addition to
complying with Section 4.004, Election Code, notice of the
annexation election must:
(1) state the conditions under which the territory may be
annexed; or
(2) refer to the resolution of the board for that purpose.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.058. ELECTION RESULTS. (a) The commissioners court
shall issue an order declaring the results of the annexation
election.
(b) If the order shows that a majority of the votes cast are in
favor of annexation, the commissioners court shall annex the
proposed territory to the district. The annexation is
incontestable except within the time for contesting elections
under the general election law.
(c) A certified copy of the order shall be recorded in the deed
records of the county in which the territory is located.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.059. ASSUMPTION OF DEBT; TAXES. (a) In calling the
election on the proposition for annexation of territory, the
commissioners court may include, as a part of the same
proposition, a proposition for:
(1) the territory to assume its part of the tax-supported bonds
of the district then outstanding and those bonds previously voted
but not yet sold; and
(2) an ad valorem tax to be imposed on taxable property in the
territory along with the tax in the rest of the district for the
payment of the bonds.
(b) After territory is annexed to the district, the board may
hold an election in the district as enlarged to determine whether
the district as enlarged shall assume any tax-supported bonds
then outstanding and those previously voted but not yet sold and
impose an ad valorem tax on all taxable property in the district
as enlarged to pay the bonds, unless the proposition is submitted
as provided by Subsection (a) and becomes binding on the
territory annexed.
(c) An election held under Subsection (b) shall be held in the
same manner as an election under this chapter for the issuance of
bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.060. RESTRICTION ON ANNEXATION OF RAILROAD
RIGHT-OF-WAY. (a) A railroad right-of-way may not be annexed to
the district unless the right-of-way is contained in the limits
of a municipality annexed at the same time or previously annexed
to the district.
(b) A railroad right-of-way that is not in the defined limits of
a municipality will not benefit from improvements, works, and
facilities the district is authorized to construct.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 6903.101. COMPOSITION OF BOARD; TERMS. (a) The board
consists of eight directors.
(b) Voters of the city of Ranger who reside in the district
elect four directors. Voters of the city of Eastland who reside
in the district elect four directors.
(c) Directors serve staggered terms, with the terms of two
directors elected from each city expiring at the same time.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.102. QUALIFICATIONS FOR OFFICE. (a) A director must
reside in the municipality from which elected and own taxable
property in the district.
(b) A member of a municipality's governing body or an employee
of a municipality may not be a director.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.103. LOCATION AND NOTICE FOR DIRECTORS ELECTION;
RESULTS. (a) For a regular directors election, there shall be
at least one voting place in each municipality in the district.
(b) Notice of a directors election shall be published in a
newspaper published in each municipality in the district one time
not later than the 10th day before the date of the election.
(c) The board shall adopt a resolution declaring the election
results.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.104. BALLOT PROCEDURE FOR CANDIDATES. (a) A person
who wants to have the person's name printed on the ballot as a
candidate for director must present a petition requesting that
action.
(b) The petition must be:
(1) signed by at least 50 residents of the district who are
registered to vote at the election; and
(2) presented to the board's secretary not later than the 16th
day before the date of the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.105. APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer, who are not
required to be directors. The board may combine the offices of
secretary and treasurer.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.106. VOTE BY BOARD PRESIDENT. The president has the
same right to vote as any other director.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.107. DIRECTOR'S AND TREASURER'S BOND. (a) Each
director shall give bond in the amount of $5,000 conditioned on
the faithful performance of the director's duties.
(b) The treasurer shall give bond in the amount required by the
board. The treasurer's bond shall be conditioned on the
treasurer's faithful accounting for all money that comes into the
treasurer's custody as treasurer of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.108. COMPENSATION. Unless the board by resolution
increases the fee to an amount authorized by Section 49.060,
Water Code, each director:
(1) shall receive a fee of $5 for attending each board meeting;
and
(2) is also entitled to receive $5 for each day devoted to the
business of the district if the service is expressly approved by
the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 6903.151. CONSTRUCTION OF DAM. (a) The district may
impound storm and flood waters and the unappropriated flow waters
at one or more places and in an amount approved by the Texas
Commission on Environmental Quality by constructing one or more
dams inside or outside the district. In exercising its powers
under this subsection, the district shall comply with Subchapters
A-D, Chapter 11, and Subchapter B, Chapter 12, Water Code.
(b) A dam or other works for the impounding of water from a
river under this section may not be constructed until the plans
for the dam or other works are approved by the Texas Commission
on Environmental Quality.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.152. UNDERGROUND SOURCES OF WATER. The district may
develop or otherwise acquire underground sources of water.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.153. CONSTRUCTION OR ACQUISITION OF PROPERTY. The
district may construct or otherwise acquire all works, plants,
and other facilities necessary or useful for the purpose of
processing water impounded, developed, or otherwise acquired and
transporting it to municipalities and others for municipal,
domestic, and industrial purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.154. WATER APPROPRIATION PERMITS. The district may
acquire water appropriation permits directly from the Texas
Commission on Environmental Quality or from owners of permits.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.155. PURCHASE OF WATER. The district may purchase
water or a water supply from any person, including a public
agency.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.156. SURPLUS PROPERTY. The district may sell any
property that, in the opinion of the board, will not be needed
for the conduct of the affairs or business of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.157. EMINENT DOMAIN. (a) To carry out a power
provided by this chapter, the district may exercise the power of
eminent domain to acquire land and easements inside or outside
the district, including land above the probable high water line
around the reservoirs.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code.
(c) The board shall determine the amount and the type of
interest in land and easements to be acquired under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.158. PARKS AND RECREATION FACILITIES. (a) The
district may establish or otherwise provide for public parks and
recreation facilities and may acquire land adjacent to any of its
reservoirs for those purposes.
(b) The district may not use money received from taxation or
from bonds payable wholly or partly from taxation for a purpose
described by Subsection (a).
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.159. CONSTRUCTION CONTRACTS. (a) This section
applies only to a construction contract or a contract for the
purchase of material, equipment, or supplies requiring an
expenditure of more than $25,000.
(b) The district shall award a contract to the lowest and best
bidder after publishing notice to bidders once a week for two
weeks in a newspaper published in the district that is designated
by the board.
(c) The notice is sufficient if it states:
(1) the time and place for opening the bids;
(2) the general nature of the work to be done or the material,
equipment, or supplies to be purchased; and
(3) the place where and the terms on which copies of the plans
and specifications may be obtained.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.160. CONTRACTS TO SUPPLY WATER. (a) The district may
contract with municipalities and others to supply water to those
entities.
(b) The district may contract with a municipality for the rental
or leasing of or for the operation of the water production, water
supply, and water supply facilities of the municipality on the
consideration agreed to by the district and the municipality.
(c) The contract may be on terms and for the time agreed to by
the parties.
(d) The contract may provide that it will continue in effect
until bonds specified in it and refunding bonds issued in lieu of
the bonds are paid.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.161. CONTRACTS FOR TOLL BRIDGES OR FERRY SERVICE. (a)
The board may contract with a responsible person for:
(1) the construction and operation of a toll bridge over the
district's water; or
(2) ferry service on or over the district's water.
(b) The period of a contract under Subsection (a) may not
exceed:
(1) 20 years under Subsection (a)(1); or
(2) 10 years under Subsection (a)(2).
(c) The contract under Subsection (a) may:
(1) set reasonable compensation to be charged for service by the
facility;
(2) require from the contracting person an adequate bond payable
to the district in an amount and conditioned as the board
considers to be required; and
(3) provide for forfeiture of the particular franchise if the
license holder fails to render adequate public service.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER E. REGULATORY POWERS
Sec. 6903.201. ADOPTION OF RULES. The board may adopt
reasonable rules to:
(1) secure, maintain, and preserve the sanitary condition of
water in and water that flows into any reservoir owned by the
district;
(2) prevent waste of or the unauthorized use of water; and
(3) regulate residence, hunting, fishing, boating, camping, and
any other recreational or business privilege along or around any
district reservoir and the stream leading into the reservoir, and
its tributaries, or any body of land, or easement owned or
controlled by the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.202. ENFORCEMENT OF RULES; PENALTY. (a) The district
by rule may prescribe reasonable penalties for the violation of a
district rule.
(b) A penalty may consist of:
(1) a fine not to exceed $200;
(2) confinement in jail for a term not to exceed 30 days; or
(3) both the fine and confinement.
(c) A penalty adopted under this section is in addition to any
other penalty provided by Texas law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.203. NOTICE OF RULE PROVIDING PENALTY. (a) If the
district adopts a rule that provides a penalty, the district must
publish a substantive statement of the rule and the penalty once
a week for two consecutive weeks in Eastland County.
(b) The 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 principal office of the district,
where it may be read by any interested person.
(e) A rule takes effect five days after the date of the second
publication of the statement under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.204. JUDICIAL NOTICE OF RULES. A court shall take
judicial notice of a rule adopted under this subchapter and
published as required by Section 6903.203, and the court shall
consider the rule to be similar in nature to a penal ordinance of
a municipality.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.205. ENFORCEMENT BY PEACE OFFICERS. (a) A peace
officer employed by the district or a county peace officer may
make an arrest when necessary to prevent or abate the commission
of an offense:
(1) in violation of a district rule or a law of this state that
occurs or threatens to occur on any land, water, or easement
owned or controlled by the district; or
(2) involving damage to any property owned or controlled by the
district.
(b) A peace officer described by Subsection (a) may make an
arrest under Subsection (a)(2) at any location.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
Sec. 6903.251. DEPOSITORY. (a) Except as provided by
Subsection (i), the board shall designate one or more banks in
the district to serve as depository for the district's money.
(b) District money shall be deposited with a designated
depository bank or banks, 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 principal of and interest on bonds.
(c) To the extent that money in a depository bank or a trustee
bank is not insured by the Federal Deposit Insurance Corporation,
the money must be secured in the manner provided by law for the
security of county funds.
(d) The board shall prescribe the terms of service for
depositories.
(e) Before designating a depository bank, the board shall issue
a notice that:
(1) states the time and place at which the board will meet to
designate a depository bank or banks; and
(2) invites the banks in the district to submit an application
to be designated as a depository.
(f) The notice must be published one time in a newspaper
published in the district and specified by the board.
(g) 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 that:
(A) offer the most favorable terms for handling the money; and
(B) the board finds have proper management and are in condition
to handle the money.
(h) Membership on the board of an officer or director of a bank
does not disqualify the bank from being designated as a
depository.
(i) If the board does not receive any applications before the
time stated in the notice, or if the board rejects all
applications, the board shall designate one or more banks located
inside or outside the district on terms that the board finds
advantageous to the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.252. TAX ASSESSOR AND COLLECTOR. The board shall
appoint a tax assessor and collector.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.253. PROJECTS EXEMPT FROM ASSESSMENT OR TAXATION. The
district is not required to pay a tax or assessment on a project
or any part of a project.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER G. BONDS
Sec. 6903.301. AUTHORITY TO ISSUE BONDS. (a) The district may
issue bonds to:
(1) provide a source of water supply for municipalities and
other users for municipal, domestic, and industrial purposes; or
(2) carry out any other power conferred by this chapter.
(b) The bonds must be authorized by a board resolution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.302. FORM OF BONDS. District bonds must be:
(1) issued in the district's name;
(2) signed by the president or vice president; and
(3) attested by the secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.303. MATURITY. District bonds must mature not later
than 40 years after the date of their issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.304. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES.
(a) Bonds, other than refunding bonds, payable wholly or partly
from ad valorem taxes may not be issued unless authorized by a
district election at which a majority of the votes cast in each
municipality in the district favor the bond issuance.
(b) The board may order an election under this section without a
petition. The order must specify:
(1) the time and places at which the election will be held;
(2) the purpose for which the bonds will be issued;
(3) the maximum amount of the bonds;
(4) the maximum maturity of the bonds;
(5) the form of the ballot; and
(6) the presiding judge for each voting place.
(c) Notice of the election must be given by publishing a
substantial copy of the order calling the election in a newspaper
published in the district for two consecutive weeks. The first
publication must be not later than the 21st day before the date
of the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.305. BONDS PAYABLE FROM REVENUE. (a) In this
section, "net revenue" means the gross revenue of the district
less the amount necessary to pay the cost of maintaining and
operating the district and its property.
(b) Bonds issued under this subchapter may be secured under
board resolution by a pledge of:
(1) all or part of the district's net revenue;
(2) the net revenue of one or more contracts made before or
after the issuance of the bonds; 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.
(d) Bonds not payable wholly or partly from ad valorem taxes may
be issued without an election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.306. BONDS PAYABLE FROM AD VALOREM TAXES. The
district may issue bonds payable from:
(1) ad valorem taxes imposed on taxable property in the
district; or
(2) ad valorem taxes and revenue of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.307. TAX AND RATE REQUIREMENTS. (a) If the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall impose a tax sufficient to pay the bonds and the
interest on the bonds as the bonds and interest become due. The
board may adopt the rate of the tax after considering the money
received from the pledged revenue available for payment of
principal and interest to the extent and in the manner permitted
by the resolution authorizing the issuance of the bonds.
(b) If the district issues bonds payable wholly or partly from
revenue, the board shall set and revise the rates of compensation
for water sold and services rendered by the district.
(c) For bonds payable wholly from revenue, the rates of
compensation must be sufficient to:
(1) pay the expense of operating and maintaining the facilities
of the district;
(2) pay the bonds as they mature and the interest as it accrues;
and
(3) maintain the reserve and other funds as provided by the
resolution authorizing the issuance of the bonds.
(d) For bonds payable partly from revenue, the rates of
compensation must be sufficient to assure compliance with the
resolution authorizing the issuance of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.308. ADDITIONAL SECURITY. (a) Bonds, including
refunding bonds, authorized by this subchapter that are not
payable wholly from ad valorem taxes may be additionally secured
by a deed of trust lien on physical property of the district and
all franchises, easements, water rights and appropriation
permits, leases, contracts, and all rights appurtenant 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:
(1) is the owner of the dam or dams and the other property,
including facilities, purchased; and
(2) is entitled to maintain and operate the property, including
facilities.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.309. USE OF BOND PROCEEDS. (a) The district may set
aside an amount of proceeds from the sale of bonds issued under
this subchapter 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.
(b) The district may use proceeds from the sale of the bonds to
pay any expense necessarily incurred in accomplishing the
purposes of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.310. APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
25 percent of the outstanding bonds of the issue in default or
threatened with default, appoint a receiver for the district.
(b) The receiver may collect and receive all district income
except taxes, employ and discharge district agents and employees,
take charge of money on hand, except money received from taxes,
unless commingled, and manage the district's proprietary affairs
without consent or hindrance by the board.
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.311. REFUNDING BONDS. (a) The district may issue
refunding bonds to refund outstanding bonds issued under this
subchapter 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 district, 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 surrender and
cancellation of the bonds to be refunded.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6903.312. BONDS EXEMPT FROM TAXATION. A bond issued under
this subchapter, the transfer of the bond, and income from the
bond, including profits made on the sale of the bond, are exempt
from taxation in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.