WATER CODE
CHAPTER 19. TEXAS DEEPWATER PORT AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
§ 19.001. POLICY. It is the policy, intent, and
determination of the legislature that:
(1) Texas urgently needs an offshore deepwater port
capable of accommodating supertankers for the importation of crude
oil and other fluid commodities that may be carried in ships of that
size;
(2) it is most desirable for private enterprise to
own, construct, and operate such an offshore port;
(3) in the absence of any active and viable plan to
develop a deepwater, offshore port by private enterprise, the State
of Texas should construct such a facility, which should be
self-supporting and whose design, construction, and operation
should be carried out by private companies under contract;
(4) protecting the environment is essential to the
proper operation of such a port;
(5) the credit of the State of Texas shall not be
pledged to finance such a port; and
(6) the Texas Deepwater Port Authority be created to
implement this policy.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.002. DEFINITIONS. In this chapter:
(1) "General manager" means the General Manager of the
Texas Deepwater Port Authority.
(2) "Authority" means the Texas Deepwater Port
Authority.
(3) "Board" means the Board of Commissioners of the
Texas Deepwater Port Authority.
(4) "Commissioner" means a member of the Board of
Commissioners of the Texas Deepwater Port Authority.
(5) "Deepwater port" means the facilities defined in
Section 3(10) of the Deepwater Port Act of 1974, 33 U.S.C.A. 1501 et
seq., and also includes the onshore storage tank facilities and the
pipelines located within the State of Texas that connect the
onshore storage facilities with the offshore facilities of a
deepwater port.
(6) "Petroleum" means petroleum, crude oil, natural
gas, and any substance refined from crude oil or natural gas.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.003. AUTHORIZATION FOR DEEPWATER PORT. In order to
insure that the policy stated in this chapter is not circumvented,
the Texas Deepwater Port Authority created by this chapter shall
not commence operations unless and until the governor determines,
and so states by executive order, that no active and viable plan to
develop a deepwater, offshore port by private enterprise exists in
Texas and that the Texas Deepwater Port Authority should carry out
its responsibilities under this chapter.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.004. EXPIRATION. If the governor has not made the
finding and issued the executive order provided in Section 19.003
of this code, all provisions of this chapter, including the
existence of the Texas Deepwater Port Authority, shall expire on
January 1, 1979.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.005. TIDELANDS. None of the provisions of this
chapter shall be interpreted or construed to affect Texas's claim
to its tidelands or the location of Texas's coastline as
interpreted by the State of Texas.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
§ 19.011. TEXAS DEEPWATER PORT AUTHORITY. The Texas
Deepwater Port Authority is created as an agency of the state and
pursuant to Article XVI, Section 59, Subsection (a) of the Texas
Constitution.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.012. COMMISSIONERS; APPOINTMENT. The authority
shall be governed by a board of commissioners with nine members, who
shall be appointed by the governor with the advice and consent of
the senate.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.013. TERMS OF OFFICE; VACANCIES. (a) Of the
initial appointees to the board, the governor shall designate three
persons to serve until January 31, 1979, three persons to serve
until January 31, 1981, and three persons to serve until January 31,
1983.
(b) Except for the initial appointees, each commissioner
shall hold office for a staggered term of six years and until his
successor is appointed and has qualified.
(c) Any vacancy that occurs on the board shall be filled for
the unexpired term in the manner provided in Section 19.012 of this
code for making the original appointment.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.014. OFFICERS. (a) Before June 1 of each
even-numbered year, the board of commissioners shall elect a
chairman, except for the initial election of chairman which shall
be made as soon as possible after the effective date of this
chapter.
(b) The board may elect other officers at the times and by
the means as it may provide by rule.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.015. BOARD MEETINGS. (a) The board shall meet at
least once every three months and may hold other meetings at the
call of the chair or of five of the commissioners.
(b) The board shall provide by rule for the conduct of
meetings.
(c) A majority of the commissioners shall constitute a
quorum for the transaction of business.
(d) All meetings of the board shall be open to the public to
the same extent as may be provided by general law for meetings of
state boards and agencies.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.016. COMPENSATION AND EXPENSES. Each commissioner
is entitled to receive reimbursement for travel and other necessary
expenses resulting from the performance of his duties under this
chapter and is entitled to receive as compensation $75 a day for
each day actually engaged in the work of the authority.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.017. POWERS AND DUTIES OF THE BOARD;
DELEGATION. (a) The board shall formulate general policy to
govern the authority and its activities.
(b) The board shall exercise the powers and duties of the
authority and may delegate to the agents and employees of the
authority such powers and duties as the board may provide.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.018. GENERAL MANAGER. (a) The board shall employ
a general manager to serve at the pleasure of the board.
(b) The general manager shall be the chief administrative
officer of the authority and shall manage the executive and
administrative functions of the authority under policies adopted by
the board.
(c) The general manager shall have kept full and accurate
minutes of all transactions and proceedings of the authority.
(d) The general manager shall have any other duties the
board may direct.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.019. EMPLOYEES; COMPENSATION; ETC. (a) The
general manager shall employ necessary attorneys, accountants,
engineers, technical personnel, and other employees as the board
may consider necessary.
(b) In employing persons under Subsection (a) of this
section, the general manager shall comply with all federal laws and
rules relating to equal employment opportunity and shall employ for
each position the best qualified person for that position.
(c) The employees of the authority shall receive the
compensation provided by the board.
(d) Employees of the authority shall not be considered
employees of the State of Texas.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.020. RULES. The board shall, after proper notice
and hearings, adopt rules governing the conduct of authority
operations and the manner of carrying out its powers, duties, and
responsibilities.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.021. DOCUMENTS, ETC.; OPEN FOR
INSPECTION. (a) All information, documents, and data collected
by the authority in the performance of its duties are open to
inspection by any person to the same extent as if that information
or the documents or data were the property of the state.
(b) The general manager shall be the custodian of all the
files and records of the authority.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
SUBCHAPTER C. INITIAL ACTIVITIES AND STUDIES
§ 19.036. SECURING OF LICENSE. (a) Prior to the
acquisition of any facilities, the sale of any bonds or notes, or
the borrowing of any money, the authority shall secure all
necessary licenses and permits for the acquisition, construction,
and operation of a deepwater port facility.
(b) No license or permit may be requested or accepted by the
authority nor may the state be a party to a license or permit which
would impose on the State of Texas or the authority any liability or
financial obligation by virtue of contract, tort, or otherwise
unless that liability or financial obligation is fully indemnified
without expense of state funds.
(c) With the exception of the initial appropriations from
the General Revenue Fund to the Texas Deepwater Port Authority and
revenues of the authority, the state may not pledge its faith and
credit or contribute any state funds to a project of the Texas
Deepwater Port Authority or for expenses of carrying out the powers
and duties of the authority. Bonds issued under the provisions of
this chapter shall not be deemed to constitute a debt of the state
or a pledge of the faith and credit of the state. The authority is
not authorized to incur any liability or financial obligations
which cannot be serviced from the revenues of the authority or from
the initial appropriations.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977. Amended by Acts 1979, 66th Leg., p. 29, ch. 19, §
1, eff. March 3, 1979.
§ 19.037. ENGINEERING AND ENVIRONMENTAL
STUDIES. Concurrent with any applications for licenses and
permits for the construction and operation of a deepwater port
facility, the authority shall conduct or cause to be conducted
engineering and environmental impact studies to determine
engineering feasibility of the proposed facility and to determine
that adverse effects on the environment will be minimized. The
authority may receive information concerning engineering and
environmental impact data from any person, firm, or corporation
possessing that information and, if construction of such deepwater
port facility is commenced, may compensate that person, firm, or
corporation a reasonable amount for the information, as determined
by the authority.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.038. FINANCIAL FEASIBILITY. After securing all
necessary licenses and permits to enable the acquisition,
construction, and operation of a deepwater port facility, the
authority shall conduct a study to determine the financial
feasibility of constructing and operating a deepwater port
facility. In addition to any financial details or other matters it
deems relevant, the authority shall specifically investigate
financing alternatives and determine which alternative is feasible
and most attractive to the state. In no event does the authority
have the ability to pledge the general credit of the state.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.039. FINAL REPORT OF COMMISSION; SUBMISSION OF
REPORT TO GOVERNOR. After consideration of the studies required by
Sections 19.036 through 19.038 of this code, the authority shall
determine whether or not the facility is feasible and in the public
interest and shall submit a detailed report of its findings to the
governor and the legislature.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.040. SUBMISSION TO NATURAL RESOURCES COUNCIL. On
receiving the report containing the findings of the authority, the
governor shall transmit a copy of the report to the Natural
Resources Council. The Natural Resources Council shall review the
report of the authority and submit a recommendation to the governor
on the report. If the council has objections to any part of the
report, it shall state those objections in detail in its
recommendation to the governor. If the council fails to act within
60 days after the report of the authority is received from the
governor, the report is deemed approved by the council.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.041. ACTION BY THE GOVERNOR. The governor shall,
within 120 days after the report of the authority is received,
either approve or disapprove the findings of the authority. If the
report is disapproved, the governor shall state in detail his
reasons for disapproval of the report. If the governor disapproves
the report of the authority, the authority may revise its report or
undertake additional studies and submit a new report to meet the
objections of the governor. If the governor has taken no action on
the report within 120 days after submission, it is deemed approved.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.042. APPROVAL NECESSARY FOR CONSTRUCTION AND
ISSUANCE OF BONDS. Prior to the acquisition of any property or
construction of any facilities to be used as a part of a deepwater
port facility, the sale of any bonds or notes, or the borrowing of
any money, both the authority and the governor must find that the
construction and operation of a deepwater port facility is feasible
and in the public interest.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
SUBCHAPTER D. POWERS AND DUTIES
§ 19.051. GENERAL POWERS AND DUTIES. (a) The
authority has the powers and duties specifically prescribed by this
chapter and all other powers necessary or convenient to carry out
its responsibilities.
(b) The authority shall have, in general, all the powers
that are permitted to a corporation by the general laws of this
state.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.052. SPECIFIC POWERS AND DUTIES. (a) In addition
to its powers and duties under Section 19.051 of this code, the
authority shall have the following specific powers and duties as to
each individual deepwater port facility:
(1) to acquire by purchase, lease, gift, or in any
other manner other than by condemnation and to maintain, use, and
operate property of any kind, real, personal, or mixed, or any
interest in that property, within or without the boundaries of the
State of Texas necessary or convenient to the exercise of the
powers, rights, privileges, and functions conferred on it by this
chapter;
(2) to acquire by condemnation property of any kind,
real, personal, or mixed, other than minerals or interests in
minerals, or any interest in that property, within or without the
boundaries of the State of Texas necessary or convenient to the
exercise of the powers, rights, privileges, and functions conferred
on it by this chapter, in the manner provided by Title 52 of the
Revised Civil Statutes of Texas, 1925, as amended;
(3) subject to the provisions of this chapter, from
time to time to sell or otherwise dispose of any property of any
kind, real, personal, or mixed, or any interest in that property
that shall not be necessary to carry on the business of the
authority;
(4) subject to the limitations of Subsection (a) of
Section 19.054 of this chapter, to construct, extend, improve,
maintain, and reconstruct, to cause to be constructed, extended,
improved, maintained, and reconstructed, and to use and operate,
any and all facilities of any kind necessary or convenient to the
exercise of such powers, rights, privileges, and functions;
(5) to sue and be sued in its corporate name;
(6) to adopt, use, and alter a corporate seal;
(7) to make bylaws for the management and regulation
of its affairs;
(8) to make contracts and to execute instruments
necessary or convenient to the exercise of the powers, rights,
privileges, and functions conferred on it by this chapter;
(9) to borrow money for its corporate purposes and
without limitation of the generality of the foregoing, to borrow
money and accept grants from the United States or from any
corporation or agency created or designated by the United States,
and in connection with any such loan or grant, to enter into
agreements as the United States or the corporation or agency may
require, and to make and issue its bonds and notes for money
borrowed, in the manner and to the extent provided in Subchapter F
of this chapter;
(10) to apply for, request, solicit, contract for,
receive, and accept money and other assistance from any source to
carry out its duties; and
(11) to do any and all other acts or things necessary
or convenient to the exercise of the powers, rights, privileges, or
functions conferred on it by this chapter or any other law.
(b) If the authority requires the relocation, raising,
lowering, rerouting, or change in grade or alteration in the
construction of any railroad, electric transmission, telegraph or
telephone lines, conduits, poles, or facilities, or pipelines in
the exercise of the power of eminent domain, all of the relocation,
raising, lowering, rerouting, or changes in grade or alteration of
construction due to the exercise of the power of eminent domain
shall be the sole expense of the authority. The term "sole expense"
means the actual cost of relocation, raising, lowering, rerouting,
or change in grade or alteration of construction to provide
comparable replacement without enhancement of facilities, after
deducting the net salvage value derived from the old facility.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.053. STATE-OWNED WATER BOTTOMS; LEASE;
ETC. (a) The School Land Board shall lease to the authority
state-owned water bottoms that are necessary for the construction,
operation, and maintenance of a deepwater port.
(b) The School Land Board shall not lease to any third party
any water bottoms that may be necessary for construction,
operation, or maintenance of a deepwater port unless the authority
certifies to the School Land Board that those water bottoms are not
required for use by the authority.
(c) Necessary water bottoms shall be leased to the authority
on the terms and for the compensation to which the School Land Board
and the authority shall mutually agree.
(d) Mineral rights and interests in the leased areas are
reserved to the state; however, the School Land Board may not lease
for mineral development any areas leased to the authority without
the consent of the authority unless the mineral lease will not
adversely affect the deepwater port.
(e) The School Land Board, the authority, and the lessee may
enter into agreements to coordinate the use of sites needed by the
authority if the sites have existing mineral leases.
(f) Nothing in this section shall authorize the authority to
explore for, develop, or produce any minerals of whatever kind.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.054. DEVELOPMENT OF A DEEPWATER PORT. (a) The
authority shall, as soon as possible after the effective date of
this chapter:
(1) have designed, licensed, developed, built,
operated, maintained, or modified any deepwater port or ports as it
shall determine to be necessary from time to time;
(2) provide that the engineering, design,
construction, operation, and maintenance of those deepwater ports
shall be carried out by suitable private enterprise under the
regulation and supervision of the authority;
(3) finance those deepwater ports through
self-supporting revenue bonds backed by tariffs charged the users
of the facilities and by any other means that may be necessary or
convenient and consistent with the provisions of this chapter;
(4) enter into contracts with public or private
entities necessary to carry out the provisions of this chapter,
provided, however, that no contract for purposes of operation of a
deepwater port may be entered into by the authority unless the
contract stipulates that the public or private entities contracting
with the authority shall assume any liability of the authority for
any causes of action arising from environmental damage;
(5) apply for any necessary licenses, permits, or
other permissions necessary to carry out the provisions of this
chapter;
(6) set and collect those charges the authority may
determine are appropriate for any service or other action performed
by or requested of the authority;
(7) take any actions the authority may determine are
necessary or cause to be done any of the things required of the
authority under this chapter;
(8) enter into agreements with port and navigation
districts and other political subdivisions or agencies of the state
regarding matters of mutual concern;
(9) make payments in lieu of taxes to the state and
political subdivisions of the state to the same extent as if the
property of the authority were privately owned, provided, however,
that any payments in lieu of taxes shall be based on full value less
the value of the interests of any public or private entities
contracted with to operate the facility; and
(10) take any other actions determined by the board to
be necessary for the authority to carry out its duties and
responsibilities in implementing the provisions of this chapter.
(b) In addition to the foregoing, the authority may:
(1) own, construct, maintain, lease as lessor or
lessee, and sell by installment sale or otherwise, deepwater
mooring facilities, wharves, sheds, pipelines, pumping stations,
tanks, tank farms and facilities, heliports, warehouses, vessels,
and other property, structures, equipment, and other facilities
functionally related to a deepwater port;
(2) dredge and maintain shipways, channels,
anchorage, roadsteads, and fairways;
(3) establish, operate, and maintain navigable
waterway systems in the immediate area of the facilities
constructed hereunder, in cooperation with the United States, this
state, and political subdivisions of this state;
(4) enter into a contract with any public or private
entity to provide public utility service to the authority and its
facilities, or provide its own utility services;
(5) negotiate with and enter into contracts, compacts,
and other agreements with the United States and other states of the
United States concerning development programs including
jurisdictional aspects of the location of deepwater ports and
adoption and enforcement of rules governing authority operations;
(6) adopt tolls, fees, rates, tariffs, and charges for
use of the terminal or terminals or any of its facilities;
(7) provide for use of existing port facilities and
provide for rates, wharfage fees, and other matters of mutual
interest, by agreements with existing port authorities and
navigation districts; and
(8) enter into contracts or agreements with any
person, corporation, trust, or partnership for the financing,
construction, operation, maintenance, and sale by installment or
otherwise of a deepwater port or any facilities relative to a
deepwater port.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.055. AUTHORITY CONTRACTS. (a) The authority may
let any contracts for the purchase of materials, machinery, and
equipment to constitute the plant, works, facilities, and
improvements of a deepwater port, for construction, or for other
purposes.
(b) All these contracts shall be let to the lowest
responsible bidder after sealed bids are solicited by public
notice.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
SUBCHAPTER E. ENVIRONMENTAL PROTECTION
§ 19.101. PROTECTION OF THE ENVIRONMENT. (a) The
authority shall take all reasonable steps to protect the coastal
environment and the high seas from any short-term or long-term
damage or harm that might occur from any action the authority may
take.
(b) The general manager, under the direction of the board,
shall formulate an environmental protection plan as soon as
possible, which shall be adopted by the authority after proper
notice and hearing.
(c) In preparing and adopting the environmental protection
plan, the authority shall consult and coordinate with any federal,
state, and local agencies that have responsibility for
environmental protection within the state and shall comply with
applicable rules.
(d) The environmental protection plan may be amended at any
time by the authority after proper notice and hearing.
(e) Environmental protection shall be a primary
responsibility of the authority, and costs incurred to develop the
plan to protect the environment shall be considered a necessary
cost to the authority and shall be considered a cost to the same
extent that economic, engineering, or promotional programs are
considered costs.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
SUBCHAPTER F. FINANCIAL PROVISIONS
§ 19.131. GENERAL PROVISIONS. The authority may:
(1) borrow money from time to time for any corporate
purpose or in aid of any corporate purpose;
(2) issue and sell notes and provide the terms and
conditions for repayment with interest and the rights of the
holders of the notes;
(3) issue and sell bonds and provide the terms and
conditions for repayment with interest and the rights of the
bondholders;
(4) pledge, hypothecate, or otherwise encumber all or
any designated part of the revenues and receipts of the authority as
security for any of its notes or bonds;
(5) invest money held in any sinking fund, reserve
fund, or other fund or money not required for immediate use or
disbursement in such securities as it shall determine;
(6) apply for, accept, and administer grants, loans,
and other assistance from the United States or any agency or
instrumentality of the United States and any agency or
instrumentality of this state to carry out the purpose of this
chapter, and enter into any agreement in relation to those grants,
loans, or other assistance as may be provided by the authority
subject to the provisions of Section 19.036, which is not in
conflict with the constitution of this state; and
(7) fix, charge and alter, and collect reasonable
rentals, rates, fees, and other charges for the use of any works and
facilities or for any services rendered by the authority and
provide for the imposition of reasonable penalties for any of those
rates, fees, and charges that are delinquent.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.132. FORM AND TERMS OF BONDS AND NOTES. (a) Bonds
and notes issued under the provisions of this chapter together with
any interest coupons shall be authorized by resolution of the board
and shall have the form and characteristics and bear the
designation as are therein provided.
(b) Bonds and notes shall:
(1) be authorized by resolution or resolutions of the
board;
(2) bear the date or dates, mature at the time or
times, serially, terms, or otherwise in not more than 50 years from
their dates; and
(3) be callable prior to stated maturity on the terms
and at the prices, bear interest at such rate or rates, be payable
annually, semiannually, or otherwise, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges as to principal only or as to both principal and interest
and as to successive exchange of coupon for registered bonds or
notes or vice versa and successive exchange of bonds or notes of one
denomination for bonds or notes of other denominations, be executed
in the manner, and be payable at the place or places within or
without the state as the resolution or resolutions may provide.
(c) Bonds or notes may be issued in one or more installments
and from time to time as required and sold at a price or prices and
under terms determined by the board to be the most advantageous
reasonably obtainable.
(d) The proceeds of the sale of bonds or notes shall be
deposited in the bank or banks or trust company or trust companies
and shall be paid out pursuant to the terms and conditions that may
be agreed on between the authority and the purchasers.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.133. EXECUTION OF BONDS, NOTES, AND
COUPONS. (a) Bonds or notes issued under the provisions of this
chapter shall be signed by the chairman or vice-chairman of the
board, be attested by its general manager, and bear the seal of the
authority.
(b) Any interest coupons appurtenant to the bonds or notes
shall be signed by the chairman or the vice-chairman of the board
and be attested by its general manager.
(c) The resolution or resolutions authorizing the issuance
of an installment or any series of bonds or notes may prescribe the
extent to which the authority, in executing the bonds, notes, or
appurtenant coupons, may use facsimile signatures and facsimile
seals instead of manual signatures and manually impressed seals.
(d) If an officer whose manual or facsimile signature
appears on a bond or note or whose facsimile signature appears on
any coupons ceases to be an officer before the bond or note is
delivered, the signature is valid and sufficient for all purposes
as if he had remained in office until the delivery had been made.
(e) Neither the members of the board nor officers of the
authority nor anyone executing the bonds or notes for and on behalf
of the authority shall be liable personally on the bonds or notes of
the authority by reason of participation in any way in the issuance
of the bonds or notes.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.134. SECURITY PROVISIONS, ETC. (a) The bonds or
notes may be secured by a pledge of all or any part of the revenues
or receipts of the authority or by the revenues of any one or more
leases or other contracts theretofore or thereafter made or other
revenues or income specified by the resolution of the board or in
the trust indenture or other instrument securing the bonds or
notes. A pledge may reserve the right, under conditions specified
in it, to issue additional bonds or notes that will be on a parity
with or subordinate to the bonds or notes then being issued.
(b) A pledge or security instrument made by the authority is
valid and binding from the time when it is made. The revenues or
money pledged and entrusted and thereafter received by the
authority shall immediately be subject to the lien of the pledge or
security instrument without any physical delivery of it or further
act. The lien of the pledge or security instrument is valid and
binding against all parties having claims of any kind in tort,
contract, or otherwise against the authority, irrespective of
whether the parties have notice thereof. Neither the resolution
nor any security instrument or other instrument by which a pledge or
security interest is created need be recorded or filed, and
compliance with any provision of any other law is not required in
order to perfect the pledge or other security interest.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.135. PROVISIONS OF RESOLUTION. A resolution
authorizing bonds or notes or a trust indenture under which bonds or
notes may be issued may contain provisions, which shall be a part of
the agreement with the holders of bonds or notes, as to:
(1) pledging all or any part of the rentals, rates,
fees, and other charges made or received by the authority and other
money received or to be received from the planning, financing,
ownership, operation, or sale of or otherwise in connection with
any project to secure the payment of the bonds or notes or of any
issue of the bonds or notes;
(2) pledging all or any part of the assets of the
authority, including any obligation acquired by the authority, to
secure the payment of the bonds or notes or any issue of the bonds or
notes;
(3) the use and disposition of rentals, rates, fees,
and other charges made or received by the authority;
(4) pledging to establish, alter, and collect rates
and other charges with respect to each property or facility
sufficient to produce revenues adequate to pay all expenses
necessary to the operation and maintenance of such to be made in
respect of any of those bonds or notes payable out of those revenues
as the bonds or notes become due and payable, and to fulfill the
terms of any agreement made with the holders of the bonds or notes
and with any person in their behalf;
(5) the setting aside of reserves or sinking funds and
the regulation and disposition of those reserves and sinking funds;
(6) limitations on the purpose to which the proceeds
from the sale of the bonds may be applied and pledging the proceeds
to secure the payment of the bonds, notes, or any issue of the notes
or bonds;
(7) limitations on the issuance of additional bonds
and on the refunding of outstanding or other bonds or notes;
(8) the acquisition, construction, improvement,
operation, extension, enlargement, maintenance, and repair of any
project and the duties of the authority with reference thereto;
(9) the procedure, if any, by which the terms of any
agreement with bondholders or noteholders may be amended or
abrogated, the amount of bonds or notes the holders of which are
required to give consent thereto, and the manner in which the
consent may be given;
(10) limitations on the amount of money to be spent by
the authority for administrative or other expenses;
(11) vesting in a trustee or other fiduciary,
property, rights, powers, and duties in trust the authority
determines, which may include any of the rights, powers, and duties
of the trustee appointed by the bondholders or noteholders pursuant
to this chapter, and abrogating the right of the bondholders or
noteholders to appoint a trustee under this chapter or limiting the
rights, powers, and duties of the trustee;
(12) placing the management, operation, and control of
specified works and facilities of the authority in the hands of a
board of trustees to be named in the resolution or trust indenture
and specifying the terms of office of the trustees, their powers and
duties, the manner of exercising the same, the appointment of
successors, and all matters pertaining to their organization and
duties; and
(13) any other matters, of like or different
character, which in any way affect the security or protection of the
bonds or notes or the bondholders or noteholders.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.136. DEFAULT PROVISIONS. The resolution
authorizing the issuance of the bonds or notes or the trust
indenture or other instrument securing them may provide that in the
event of a default or, under the conditions therein stated, a
threatened default in the payment of principal or of interest on
bonds or notes, any court of competent jurisdiction may, on
petition of the holders of outstanding bonds or notes, appoint a
receiver with authority to collect and receive pledged income, and
those instruments may limit or qualify the rights of less than all
of the holders of the outstanding bonds or notes payable from the
same source to institute or prosecute any litigation affecting the
authority's properties or revenues.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.137. ADDITIONAL SECURITY. (a) Any bonds or
notes, including refunding bonds, authorized by this chapter may be
additionally secured by a trust indenture under which the trustee
may be a bank having trust powers situated either within or without
the state.
(b) The bonds or notes, within the discretion of the board,
may be additionally secured by a mortgage or a deed of trust lien or
security interest on works and facilities of the authority and all
real property, franchises, easements, leases, and contracts and all
rights appurtenant to those properties, vesting in the trustee
power to sell those works and facilities for the payment of the
indebtedness and to operate those works and facilities, and all
other powers and authority for the further security of the bonds or
notes.
(c) The trust indenture, regardless of the mortgage or the
deed of trust lien or security interest in the properties, may
contain any provisions prescribed by the authority for the security
of the bonds or notes and the preservation of the trust estate, may
make provision for amendment or modification thereof, may condition
the right to spend the authority's money or sell the authority's
works and facilities on approval of a registered professional
engineer selected as provided in the trust indenture, and may make
any other provisions for protecting and enforcing the rights and
remedies of the bondholders or noteholders as may be reasonable and
proper and not in violation of the law. The trust indenture may
also contain provisions governing the issuance of bonds and notes
to replace lost, stolen, or mutilated bonds or notes.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.138. BOND PROCEEDS. (a) The board may direct the
investment of money in the funds created by the resolutions, trust
indentures, or other instruments securing the bonds or notes.
(b) From the proceeds from the sale of the bonds or notes,
the board may set aside amounts for payments into the interest and
sinking fund until completion of construction and until adequate
revenue is available from operations to pay principal and interest
and amounts for payments into reserve funds, and provisions for
such may be made in the resolution authorizing the bonds, notes, or
the trust indenture or other instrument securing the bonds or
notes.
(c) Proceeds from the sale of the bonds or notes shall be
used for the payment of all expenses of issuing and selling the
bonds or notes.
(d) The proceeds from the sale of the bonds or notes and
money in any funds created in connection with the bonds or notes may
be invested in:
(1) direct or indirect obligations of or obligations
unconditionally guaranteed by the United States government or one
of its agencies maturing in the manner that may be specified by the
resolution authorizing the bonds or notes or the trust indenture or
other instrument securing the bonds or notes; or
(2) certificates of deposit of any bank or trust
company whose deposits are secured by the obligations described in
Subdivision (1) of this subsection.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.139. DEPOSITORY. Any bank or trust company located
in this state and incorporated under the laws of the United States
or any state in the United States may be designated by resolution to
act as depository for the proceeds of bonds, notes, or contract or
lease revenues or other revenues of the authority. The bank or
trust company shall furnish indemnifying bonds or pledge securities
to secure those deposits to the same extent as may be required by
general law to secure the deposit of state funds.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.140. REFUNDING. (a) The board may provide by
resolution for the issuance of refunding bonds or notes to refund
outstanding bonds or notes issued under this chapter and their
accrued interest.
(b) The authority may sell these bonds or notes and use the
proceeds to retire the outstanding bonds or notes issued under this
chapter or the authority may exchange the refunding bonds or notes
for the outstanding bonds or notes.
(c) The issuance of the refunding bonds or notes, their
maturity, the rights of the bondholders and the duties of the
authority with respect to refunding bonds or notes are governed by
the provisions of this chapter relating to original bonds or notes,
to the extent that they may be made applicable.
(d) The authority may also refund any bonds or notes under
the provisions of general law.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.141. APPROVAL AND REGISTRATION OF BONDS AND
NOTES. (a) After bonds and notes, including refunding bonds and
notes, are authorized by the board, those bonds and notes and the
record relating to their issuance shall be submitted to the
attorney general for his examination as to their validity.
(b) If the bonds and notes recite that they are secured by a
pledge of the proceeds of any lease or other contract previously
made between the authority and any person, those leases and
contracts may also be submitted to the attorney general.
(c) If those bonds or notes have been validly authorized and
if those leases or contracts have been made in accordance with the
constitution and laws of the state, the attorney general shall
approve the bonds or notes, and the leases or contracts and the
bonds or notes shall be registered by the state comptroller.
(d) The attorney general in approving bonds or notes issued
in anticipation of being refunded by other bonds and notes shall not
require as a condition of his approval that those bonds or notes
being examined have pledged to them sufficient revenues to retire
the bonds and notes before the time they will be refunded in
accordance with such anticipation.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.142. INCONTESTABILITY. After the bonds or notes,
and the leases or other contracts, if any, have been approved by the
attorney general, and the bonds and notes have been registered by
the state comptroller and delivered to the purchasers, those bonds
and notes and any underlying leases and contracts are incontestable
for any cause.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.143. DUTIES ENFORCEABLE BY MANDAMUS. Payment of
any bonds and notes according to the term and tenor, performance of
agreements with the holders of bonds or notes or any person in their
behalf, and performance of official duties prescribed by the
provisions of this chapter in connection with any bonds or notes may
be enforced in any court of competent jurisdiction by mandamus or
other appropriate proceeding.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.144. BONDS NEGOTIABLE. Bonds issued under the
provisions of this chapter and coupons, if any, representing
interest on those bonds, shall, when delivered, be deemed and
construed to be a "security" within the meaning of Chapter 8 of the
Uniform Commercial Code, as amended.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.145. BONDS AND NOTES NOT TAXABLE. Bonds and notes
issued under the provisions of this chapter, the interest on the
bonds and notes, and the profit from the sale of the bonds and notes
shall be exempt from taxation, except inheritance taxes, by the
state or by any municipal corporation, county, or other political
subdivision or taxing district of the state.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.146. AUTHORIZED INVESTMENTS. Bonds and notes
issued under this chapter are legal and authorized investments for:
(1) banks;
(2) savings banks;
(3) trust companies;
(4) building and loan associations;
(5) insurance companies;
(6) fiduciaries;
(7) trustees; and
(8) sinking funds of the state of cities, towns,
villages, counties, school districts, and all political
corporations, subdivisions, and public agencies of the state.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.147. SECURITY FOR DEPOSIT OF FUNDS. Bonds and
notes issued under the provisions of this chapter, when accompanied
by all appurtenant unmatured coupons if any, are lawful and
sufficient security for all deposits of funds of the state or of a
city, town, village, county, school district, or any other agency
or political corporation or subdivision of the state, at the par
value of the bonds.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.148. SOURCE OF REPAYMENT. Bonds and notes issued
under the provisions of this chapter together with the interest on
the bonds and notes shall be secured by and payable solely from the
revenues and receipts of the authority and other money available
therefor, including, without limitation, rentals, rates, fees, and
other charges made and received by the authority and other money
received and to be received from grants and assistance, and other
money received and to be received from the planning, financing,
ownership, or operation of any works and facilities of the
authority, and other money available therefor from proceeds of
bonds or notes.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
§ 19.149. STATE CREDIT NOT PLEDGED. (a) The
provisions of this chapter shall not be construed to authorize the
giving or lending of the credit of the state or to be a pledge of the
credit of the state for the payment of any bonds or notes issued
under the provisions of this chapter, and the purchasers and
successive holders of any bonds or notes shall never have the right
to demand payment from any money or revenues of the authority except
those pledged to the payment of bonds or notes.
(b) This chapter shall not be construed as obligating this
state to the holders of any of those bonds or notes nor to
constitute a contract on the part of this state to make money
available for any of the authority's needs.
(c) This state, however, pledges and agrees to the holders
of any bonds or notes issued under this chapter that it will not
limit or alter the rights vested in the authority to fulfill the
terms of any agreements made with the holders thereof consistent
herewith, or in any way impair the rights and remedies of the
holders until the bonds and notes, together with interest on them,
with interest on any unpaid installments of interest, and all costs
and expenses for which the authority is liable in connection with
any action or proceedings by or on behalf of the holders, are fully
met and discharged. The authority shall include this pledge and
agreement of the state in any agreements it makes with the holders
of the bonds or notes.
Added by Acts 1977, 65th Leg., 1st C.S., p. 59, ch. 5, § 1, eff.
July 26, 1977.
