CHAPTER 8101. ATHENS MUNICIPAL WATER AUTHORITY
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8101. ATHENS MUNICIPAL WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8101.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Athens Municipal Water Authority.
(2) "Board" means the authority's board of directors.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.002. NATURE OF AUTHORITY. The authority is a
conservation and reclamation district in Henderson County.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.003. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The
legislature finds that the authority is created to serve a
public use and benefit.
(b) The authority is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
(c) The accomplishment of the purposes stated in this chapter
are for the benefit of the people of this state and for the
improvement of their properties and industries. The authority in
carrying out the purposes of this chapter will be performing an
essential public function under the constitution of this state.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 13.005(a), eff. September 1, 2007.
Sec. 8101.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed to effect its purposes.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 8101.051. BOUNDARIES. The authority is in Henderson
County and, unless modified as provided by Section 8101.052, by
Subchapter J, Chapter 49, Water Code, or by Subchapter O, Chapter
51, Water Code, the boundaries of the authority are coextensive
with the corporate limits of the city of Athens, Henderson
County, Texas, as those corporate limits existed on September 1,
2003.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 13.005(b), eff. September 1, 2007.
Sec. 8101.052. ANNEXATIONS OF TERRITORY. (a) The board, as
provided by this section, may annex territory the City of Athens
annexes. The authority may not annex territory under this
section if bonds supported by ad valorem taxes previously voted
on remain unissued and unsold.
(b) The board by order may set a date for a hearing on the
annexation and hold the hearing on that date.
(c) Notice of the hearing must:
(1) be posted in three public places in the territory proposed
to be annexed at least 15 days before the date set for the
hearing; and
(2) contain a statement of the nature and purpose of the hearing
and the date, time, and place of the hearing.
(d) A person whose land is included in or would be affected by
the annexation may:
(1) appear at the hearing to contest the annexation; and
(2) offer testimony to show that the annexation would or would
not benefit land proposed to be annexed.
(e) The board shall enter a resolution ordering the annexation
and designating the territory if the board finds as a result of
the hearing that the proposed annexation is feasible and
practicable and would benefit the land proposed to be annexed.
The board may designate the territory by reference to the city's
annexation ordinance or in another manner.
(f) The board shall refuse the proposed annexation if the board
finds as a result of the hearing that the annexation does not
satisfy the requirements of Subsection (e).
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 13.005(c), eff. September 1, 2007.
Sec. 8101.053. LIMITATION ON ASSUMPTION OF TAX OBLIGATIONS. (a)
The authority may not impose on territory the authority annexes
under Section 8101.052 a tax obligation the authority incurred
before annexation unless:
(1) the owners of the land annexed provide written consent for
the assumption of that tax obligation; or
(2) at an election held for that purpose in the territory, a
majority of the voters of the territory approve the assumption of
that tax obligation.
(b) The notice provisions of Section 49.106, Water Code, apply
to an election held under this section.
(c) The election notice must be published in a newspaper
published in the city of Athens. If a newspaper is not published
in the city of Athens, it is sufficient to post notices at three
public places in that city at least 28 days before the date of
the election.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 8101.101. GENERAL POWERS. The board consists of five
directors.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.102. ELIGIBILITY TO SERVE. (a) A director must
reside in and own taxable property in the authority.
(b) A person may not serve as a director if the person is:
(1) a member of a governing body of a municipality; or
(2) an employee of a municipality.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.103. DIRECTORS ELECTION. (a) The board shall issue
an order for each directors election stating the time, place, and
purpose of the election.
(b) Notice of a directors election shall be published in a
newspaper of general circulation in the authority's territory one
time at least 30 days before the date of the election.
(c) The appropriate number of candidates who receive the highest
number of votes shall be declared elected.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.104. 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 submit a petition to the board
secretary requesting that action.
(b) The petition must be:
(1) signed by at least 50 qualified voters; and
(2) presented to the secretary not later than the 21st day
before the date of the election.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.105. APPOINTMENT OF SECRETARY AND TREASURER. The
board shall appoint a secretary and a treasurer. The board may
combine those offices. The secretary or treasurer is not required
to be a director.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.106. VOTE BY BOARD PRESIDENT. The president has the
same right to vote as any other director.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.107. DIRECTOR'S AND TREASURER'S BOND. (a) A director
shall give bond in the amount of $5,000 for the faithful
performance of the director's duties.
(b) The treasurer shall give bond in an amount required by the
board, conditioned on the treasurer's faithfully accounting for
all money that comes into the treasurer's custody.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.108. COMPENSATION. Unless the board by resolution
increases the fee to an amount authorized by Section 49.060,
Water Code, each director shall receive a fee not to exceed $10
for attending each board meeting and a fee not to exceed $10 for
each day devoted to authority business.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 8101.151. POWERS AND DUTIES. The authority has:
(1) all the powers of a governmental agency; and
(2) the rights, powers, privileges, and functions that:
(A) may be contemplated and implied by Section 59, Article XVI,
Texas Constitution; or
(B) are conferred by the general laws of the state relating to
water control and improvement districts, including Chapters 49
and 51, Water Code, unless those rights, powers, privileges, or
functions conflict with this chapter.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.152. WATER SUPPLY AND DISTRIBUTION. (a) The
authority may develop, construct, or purchase dams, reservoirs,
and underground or other sources of water.
(b) The authority may construct or purchase all works, plants,
and other facilities necessary or useful to:
(1) provide a source of water supply;
(2) store and process the water; and
(3) transport and distribute the water for municipal, domestic,
and industrial purposes.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.153. WASTE SERVICES. To preserve and protect the
purity of the waters of the authority and this state and to
conserve and reclaim those waters for beneficial use by the
inhabitants of the authority, the authority may provide all
plants, works, facilities, and appliances incident to, helpful
to, or necessary to collect, transport, process, dispose of, and
control all domestic, industrial, or communal wastes, whether
fluid, solid, or composite.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.154. EMINENT DOMAIN. (a) The authority may exercise
the power of eminent domain to acquire land and easements to
carry out any power conferred by this chapter.
(b) The authority must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code.
(c) The board shall determine the amount of and character of
interest in land and easements to be acquired.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.155. COST OF RELOCATING PROPERTY. If the authority,
in the exercise of the power of eminent domain, the power of
relocation, or any other power granted under this chapter, makes
necessary relocating, raising, rerouting, changing the grade of,
or altering the construction of any highway, railroad, electric
transmission line, or pipeline or telephone or telegraph property
or facility, the authority is solely responsible for the expense
of that necessary action.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.156. CONSTRUCTION OR PURCHASE CONTRACTS. (a) Except
as provided by Subsection (e), the authority shall award a
construction contract or contract for the purchase of materials,
equipment, or supplies requiring an expenditure of more than
$2,000 to the lowest and best bidder.
(b) Notice to bidders must be published once each week for two
weeks before the contract is awarded.
(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) where and how copies of the plans and specifications may be
obtained.
(d) The notice must be printed in a newspaper that is designated
by the board and that is published in Henderson County.
(e) This section does not apply to the purchase of a system or
part of a system in existence at the time of the purchase.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.157. CONTRACTS WITH MUNICIPALITIES AND OTHERS. (a)
The authority may contract with municipalities and others for
supplying services to them.
(b) The authority may contract with any municipality for the
rental, lease, or operation of the water production, water
supply, and water supply facilities of the authority for the
consideration agreed to by the authority and the municipality.
(c) The authority may contract with any municipality for the
rental, lease, or operation of the water production, water
supply, and water supply facilities or sanitary sewer system of
the municipality for the consideration agreed to by the authority
and the municipality.
(d) A contract under this section:
(1) may be on the terms and for the period to which the parties
agree; and
(2) may provide that the contract continues in effect until the
bonds specified by the contract and refunding bonds issued in
place of those bonds are paid.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8101.201. TAX METHOD. The authority shall use the ad
valorem plan of taxation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.202. TAX ASSESSOR AND COLLECTOR. Before issuing bonds
payable wholly or partly from ad valorem taxes or imposing ad
valorem taxes for any other purpose, the board shall:
(1) appoint a tax assessor and collector;
(2) provide for taxes to be assessed; and
(3) provide for the preparation of tax rolls.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.203. DEPOSITORY. (a) The board shall designate one
or more banks to serve as depository for the authority's money.
(b) All of the authority's money shall be deposited in the
depository bank or banks, except that:
(1) money pledged to pay bonds may be deposited with the trustee
bank or banks named in the trust indenture; and
(2) money for payment of the principal of and interest on bonds
shall be remitted to the bank of payment.
(c) To the extent that money in the depository banks and the
trustee bank are not insured by the Federal Deposit Insurance
Corporation, they must be secured in the manner provided by law
for the security of county funds.
(d) Before designating a depository bank or banks, the board
shall issue a notice that:
(1) states the time and place of the board's meeting for that
purpose; and
(2) invites the banks to submit applications to be designated
depositories.
(e) The notice must be published one time in a newspaper
published in the city of Athens at least 10 days before the date
set for receiving applications.
(f) The board shall prescribe the terms of service for
depositories.
(g) At the time mentioned in the notice, the board shall:
(1) consider the applications and the management and condition
of the banks filing applications; and
(2) designate as depository the bank or banks that:
(A) offer the most favorable terms for handling the authority's
money; and
(B) the board finds have proper management and are in condition
to handle the authority's money.
(h) If the board does not receive any applications by the time
stated in the notice, or if the board rejects all applications,
the board shall designate a bank or banks on terms it finds
advantageous to the authority.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER F. BONDS
Sec. 8101.251. AUTHORITY TO ISSUE BONDS. (a) The authority may
issue bonds to:
(1) purchase or otherwise provide works, plants, facilities, or
appliances necessary to accomplish the purposes authorized by
this chapter; or
(2) exercise any other power conferred by this chapter.
(b) Bonds issued by the authority must be payable from revenue
or ad valorem taxes. If bonds are payable wholly from revenue,
the revenue may be pledged by board resolution without an
election.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.252. REFUNDING BONDS. (a) The authority 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 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 or
mortgage liens.
(c) The provisions of this subchapter regarding the issuance of
other bonds, their security, and the remedies of the holders
apply to refunding bonds, except that an election is not required
for refunding bonds.
(d) The comptroller shall register the refunding bonds on
surrender and cancellation of the bonds to be refunded.
(e) Instead of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the authority, in
the resolution authorizing the issuance of the refunding bonds,
may provide for the sale of the refunding bonds and the deposit
of the proceeds in a bank at which the bonds to be refunded are
payable. In that case, the refunding bonds may be issued in an
amount sufficient to pay the principal of and interest on the
bonds to be refunded to their option date or maturity date, and
the comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.253. FORM OF BONDS. (a) An authority bond must:
(1) be issued in the name of the authority;
(2) be signed by the president;
(3) be attested to by the secretary; and
(4) have the authority seal impressed on it or a facsimile seal
printed on it.
(b) At the option of the board, a bond may be signed in
accordance with Chapter 618, Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.254. MATURITY. Bonds issued under this subchapter
must mature within 40 years.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.255. TRUST INDENTURE. The trust indenture may contain
provisions prescribed by the board that:
(1) provide for the security of the bonds and the operation and
preservation of the trust estate;
(2) provide for amendment or modification of the trust
indenture;
(3) provide for the issuance of bonds to replace lost or
mutilated bonds; and
(4) condition the right to spend authority money or sell
authority property on the approval of a licensed engineer
selected as provided by the trust indenture.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.256. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES.
The authority may not issue bonds payable wholly or partly from
ad valorem taxes unless the voters of the authority authorize
that issuance at an election held for that purpose in the manner
prescribed by Section 49.106, Water Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.257. BOND SECURITY; REVENUE; TAXES; ADDITIONAL BONDS.
(a) In this section, "net revenue" means the gross revenue of
the authority after deducting the amount necessary to pay the
cost of maintaining and operating the authority, including its
properties.
(b) Bonds issued under this subchapter may be secured by:
(1) a pledge of all or part of the net revenue of the authority,
including the net revenue of a past or future contract; or
(2) other revenue and income specified by resolution of the
board or the trust indenture.
(c) If bonds are issued payable wholly or partly from taxes, the
board shall impose taxes on all taxable property in the authority
without limit as to rate or amount while those bonds are
outstanding. The board shall impose the taxes in amounts:
(1) sufficient to pay the principal of and interest on the bonds
annually as they mature; or
(2) required to supplement the net revenue pledged to the bonds'
payment so that the principal of and interest on the bonds are
paid when due.
(d) A bond security pledge under this section may reserve to the
authority the right, under conditions specified by the pledge, to
issue additional bonds that will be on a parity with or
subordinate to the bonds then being issued.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.258. ADDITIONAL SECURITY. (a) Bonds, including
refunding bonds, payable partly or wholly from a pledge of
revenue authorized by this subchapter may be additionally secured
by a mortgage lien on physical properties of the authority and
all franchises, easements, water rights and appropriation
permits, leases, contracts, and all rights appurtenant to those
properties, vesting in the trustee under the trust indenture the
power to:
(1) sell the properties for payment of the debt;
(2) operate the properties; and
(3) take any other action to secure the bonds.
(b) A purchaser under a sale under the deed of trust:
(1) is the absolute owner of the properties and facilities
purchased; and
(2) is entitled to maintain and operate those properties and
facilities.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.259. CHARGES FOR AUTHORITY SERVICES. The board shall
set the rates of compensation for services rendered by the
authority so that the authority has enough money to pay the
expenses of operating and maintaining the facilities of the
authority, to pay bonds as they mature and the interest as it
accrues, and to maintain the reserve and other funds as provided
in the resolution authorizing the bonds or in the trust
indenture.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.260. USE OF BOND PROCEEDS. (a) The authority may set
aside and use proceeds from bond sales for:
(1) the payment of interest expected to accrue during
construction and the first year after construction; and
(2) a reserve interest and sinking fund.
(b) The authority may provide in the resolution authorizing the
bonds or in the trust indenture for setting aside and using the
proceeds as described by Subsection (a).
(c) The authority may use proceeds from the sale of bonds to pay
an expense incurred in accomplishing the purposes of the
authority.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.261. APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of the 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
outstanding bonds, appoint a receiver for the authority.
(b) The receiver, without consent of or hindrance by the board,
may:
(1) collect and receive all authority income;
(2) employ and discharge authority agents and employees;
(3) take charge of money on hand; and
(4) manage the affairs of the authority.
(c) The receiver may be authorized to sell or contract for the
sale of services of the authority's facilities or to renew those
contracts with the approval of the appointing court.
(d) The court may vest the receiver with any other power or duty
the court finds necessary to protect the bondholders.
(e) The resolution that authorizes the issuance of the bonds or
the trust indenture securing their payment may:
(1) specify the minimum percentage of outstanding bonds that
must be held by the bondholders seeking the appointment of a
receiver; or
(2) otherwise qualify the right of bondholders to institute
litigation that might affect the authority's property, including
money.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.262. BONDS SECURED BY CONTRACT PROCEEDS; APPROVAL.
(a) If bonds issued under this subchapter state that they are
secured by a pledge of the proceeds of a contract previously made
between the authority and a municipality or other governmental
agency, including a district, a copy of that contract and the
proceedings of the entity authorizing the contract must be
submitted to the attorney general along with the bonds.
(b) If the attorney general finds that the bonds have been
authorized and the contract has been made in accordance with law,
the attorney general shall approve the bonds and contract.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.263. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 8101.264. PROPERTY EXEMPT FROM TAXATION AND ASSESSMENT.
Property of the authority is exempt from taxation and assessment.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.