WATER CODE
CHAPTER 64. WATER IMPORT AUTHORITIES
SUBCHAPTER A. GENERAL PROVISIONS
§ 64.001. AUTHORIZATION OF THE OGALLALA WATER IMPORT
AUTHORITY OF TEXAS. Pursuant to and as expressly authorized by
Article XVI, Section 59, of the Texas Constitution, there may be
created within the State of Texas a water import authority to be
known as The Ogallala Water Import Authority of Texas, a
governmental agency and body politic and corporate, authorized to
exercise all of the powers essential to the accomplishment of the
purposes of that constitutional provision and to exercise the
rights, powers, duties, privileges, and functions provided in this
chapter and as may be contemplated and implied by Article XVI,
Section 59, of the Texas Constitution and by this chapter and other
laws of this state.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.002. TERRITORY INCLUDED IN AUTHORITY. The
authority shall include all of the area in Texas that has beneath it
the subsurface formation known as the Ogallala Formation as that
area is determined, fixed, and certified by the Texas Natural
Resource Conservation Commission, together with all of any county,
a part of which is included in that area, provided that the area in
Borden, Crosby, Dickens, and Garza Counties, and any county which
does not have at least a portion of the Ogallala Formation beneath
it shall not be initially included in the import area. A county or
any portion of a county which is not included in the import area
shall not be subject to assessment or taxation by the authority
unless subsequently annexed to the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.151,
eff. Sept. 1, 1985; Acts 1995, 74th Leg., ch. 76, § 11.333, eff.
Sept. 1, 1995.
§ 64.003. DEFINITIONS. In this chapter:
(1) "Authority" means The Ogallala Water Import
Authority of Texas.
(2) "Commission" means the Texas Natural Resource
Conservation Commission.
(3) "Import area" means the area or territory to be
included in the authority.
(4) "Net revenues" means the gross revenues of the
authority from all sources other than taxes, after deduction of
amounts used to pay the costs of maintaining and operating the
authority and its properties.
(5) "Board" means the board of directors of the
authority.
(6) "United States" means the United States of America
and includes any department, bureau, or agency of the United States
of America.
(7) "State" means the State of Texas, and its
officers, corporations, agencies, instrumentalities, departments,
bureaus, and commissions acting for it, but excludes political
entities that do not have statewide jurisdiction.
(8) "District" means a river authority, irrigation
district, soil and water conservation district, flood control
district, water control and improvement district, water supply
district, underground water conservation district, municipal
utility district, county, municipality, city, town, or any other
district or political subdivision of the state located totally or
partially within the authority and authorized by law to impound,
manage, appropriate, use, reuse, store, treat, conserve, protect,
control, or otherwise deal with water or deliver water to water
users.
(9) "Attorney general" means the attorney general of
the State of Texas.
(10) "Comptroller" means the comptroller of public
accounts of the State of Texas.
(11) "Water," unless the term is coupled with some
other qualifying or limiting term, means all water including
surface water, underground water, water naturally existing
locally, reclaimed waste water, and imported water.
(12) "Underground water" means the water existing
below the earth's surface, including water injected by a person or
district to a subsurface formation for later withdrawal by the
person or district, but does not include defined subterranean
streams or the underflow of rivers or imported water that has been
injected by the authority for underground storage and transmission
as defined in this chapter.
(13) "Surface water" means water other than
underground water.
(14) "Imported water" means surface water brought to
the area of the authority for beneficial use in the authority from a
source or sources not in or naturally tributary to the area.
(15) "Underground water reservoir" means a specific
subsurface formation capable of storing water.
(16) "Importer" means any person bringing imported
water from outside the authority to any point inside the authority
or handling any part of the movement of imported water from its
source toward the area of an authority for the purpose of making
imported water available in the authority.
(17) "Underground storage and transmission" means the
placing of water in subsurface formations or cavities through
artificial recharge for storage underground and for lateral
conveyance through the subsurface formations to points of
withdrawal for beneficial use.
(18) "Waste" means:
(A) the failure to put to a beneficial use any
water;
(B) the pollution or harmful alteration of the
character of water within a surface reservoir, surface conduit, or
underground reservoir by means of salt water or other deleterious
matter; or
(C) wilfully causing suffering, or permitting
water to escape into any river, creek, natural water course,
depression, lake, reservoir, drain, sewer, street, highway, road,
or road ditch, or on land other than that on which it has been
delivered for ultimate use.
(19) "Beneficial use" means the use of water for:
(A) agricultural, gardening, domestic, stock
raising, municipal, or mining purposes;
(B) exploring for, producing, handling, and
treating oil, gas, sulphur, or other minerals;
(C) manufacturing, industrial, commercial,
recreational, or pleasure purposes; or
(D) any other use that is beneficial to the user
of the water.
(20) "Work" means:
(A) dams and dam sites, treatment facilities,
reservoirs and reservoir sites, underground reservoirs and storage
space, wells, pumping plants, artificial recharge facilities,
drainage facilities, waste water reclamation and treatment
facilities, and all conduits and other facilities necessary and
useful in the control, protection, conservation, storage,
diversion, transmission, treatment, or distribution of water;
(B) any replacement, renovation, or improvement
of the foregoing; and
(C) land, property, franchises, easements,
rights-of-way, and privileges necessary or useful to operate or
maintain any of the foregoing.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.156,
eff. Sept. 1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, §
1.081, eff. Aug. 12, 1991.
SUBCHAPTER B. CREATION OF THE AUTHORITY
§ 64.011. DESIGNATION OF THE IMPORT AREA. (a) On its
own motion or on receiving a petition signed by at least 50
landowners in the proposed import area, the commission, after
notice and hearings, shall define and certify the import area.
(b) The commission shall schedule and conduct a minimum of
five hearings within the import area to allow adequate opportunity
for testimony from those who wish to appear. Notice of the hearings
shall be published in a newspaper or newspapers with general
circulation within the import area at least 14 days before the day
of the hearing.
(c) Additional special hearings may be conducted in each
county for which a petition containing the signatures of not less
than 10 percent of the registered voters in that county is submitted
if the petition is submitted within 30 days after the commission
hearings begin, requesting a special hearing to be conducted in
that county. Notice of each special hearing, if any, shall be
published in a newspaper with general circulation within the county
in which the special hearing is to be held at least 14 days before
the day of the special hearing.
(d) The executive administrator of the Texas Water
Development Board shall prepare available evidence relating to the
import area demonstrating the cost and benefit to be reasonably
expected from the importation of water into the area and the
estimated quantities of water that are or may be made available and
are required for import into the area, as well as evidence showing
the economic, environmental, and human costs and benefits that will
result within each county within the import area if water is
imported into the area.
(e) The commission shall give consideration to all relevant
evidence presented at the public hearing held by it and shall not
authorize an election until it determines that adequate water would
be contractually available on an equitable basis for all the water
needs existing within the authority for import into the area.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.157,
eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 35, eff.
June 19, 1987.
§ 64.012. METHOD OF CREATING AUTHORITY; NAME. After
the import area has been defined and certified, the authority may be
created. Except as otherwise provided in this chapter, the
provisions of Chapter 54 of this code apply to the creation of this
water import authority to the extent those provisions are
applicable.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.013. CONSENT OF DISTRICTS NOT REQUIRED. The
consent of any district located wholly or partially in the import
area is not required before the authority may be created.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.014. FINDINGS AND ACTION BY COMMISSION. (a) If
the commission finds, after public hearing, that the authority is
feasible and practicable, that it would be a benefit to the area
included in the authority, and that it would be a public benefit or
utility, the commission shall make these findings and shall grant
the petition, otherwise the petition shall be denied.
(b) The commission's findings of benefit to the land
included in the authority are final and conclusive unless judicial
review is sought in the manner provided in Subchapter I of Chapter 5
of this code for appeals from other orders of the commission, and
after the commission's order of creation is final, no land may be
excluded from the authority, but land may be added and annexed in
the manner provided in this chapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.151,
eff. Sept. 1, 1985.
§ 64.015. DIVIDING AUTHORITY INTO PRECINCTS. At the
time a petition for creation is granted, the commission, in its
order, shall divide the authority into 15 precincts, with each
precinct having approximately the same number of persons residing
in its area as each of the other precincts.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.151,
eff. Sept. 1, 1985.
§ 64.016. CONFIRMATION OF AUTHORITY. (a) Within 180
days from the effective date of the order of the commission granting
the petition for creation of the authority, the board of the
authority shall order an election to be held throughout the
authority within 60 days, at which there is to be submitted the
question of whether or not the establishment of the authority is
confirmed, the question of election of directors, the question of
levying, assessing, and collecting an ad valorem tax throughout the
authority, and any other questions required by this chapter or by
the board.
(b) Notice of the election shall be published in a newspaper
or newspapers that individually or collectively have general
circulation in the authority at least 14 days but not more than 30
days before the date set for the election.
(c) The board shall appoint a presiding judge for each of
the voting places determined by the board, and each of the presiding
judges shall appoint the necessary judges and clerks to assist him
or her in holding the election. The qualifications of voters in all
elections authorized by this chapter are as specified by the Texas
Election Code for those voting in the general election.
(d) If a majority of the votes cast in the election favor
confirmation of the authority, the board shall declare the results,
and the authority is created and shall have all of the powers and
authority conferred by this chapter. If a majority of the votes
cast in the election do not confirm the authority, no further
election may be held for confirmation for at least 12 months, and if
the authority is not confirmed within five years from the day of the
commission's order granting the petition to create the authority or
if the voters refuse to authorize the levy, assessment, and
collection of an ad valorem tax through the authority within the
five-year period, the authority is null and void, and the
commission is to enter an order to this effect.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.158,
eff. Sept. 1, 1985.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
§ 64.051. GOVERNING BODY. (a) The authority's powers
and duties shall be exercised through a board of directors. The
first directors shall be appointed by the commission in its order of
creation, naming one director from each precinct, and subsequent
directors shall be elected from each of the precincts into which the
authority is divided, with one director being elected from each
precinct.
(b) At the election called for confirmation of the
authority, a director shall be elected from each precinct by a
plurality vote of the qualified voters casting votes in the
precinct for the election of director. Immediately after the first
election, the 15 directors, by lot, shall determine which 7 of their
number are to serve for an initial term of one year, and which 8 are
to serve for an initial term of two years. The election day for
directors is to be on the same day of the same month every year, or
as near to that time as the board of directors deems practicable.
(c) The election of directors of the authority shall be
conducted in the manner provided for election of directors in
Chapter 54 of this code, except as otherwise provided in this
chapter.
(d) In the event of a vacancy on the board, the remaining
directors may fill the vacancy for the unexpired term.
(e) The board of directors may redesignate or redistrict the
precinct boundary lines from time to time as may be necessary in
order to comply with the principle of equal representation. The
changes by the board are to be accomplished only on an affirmative
vote of at least eight directors.
(f) If the boundaries of precincts are redesignated or
redistricted as provided in Subsection (e) of this section, at the
next election all directors are to stand for election in the manner
provided in this section, and after the election, the 15 directors
shall draw lots for terms of office in the manner provided in this
section.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.159,
eff. Sept. 1, 1985.
§ 64.052. QUALIFICATION OF DIRECTORS. To be qualified
for membership on the board, a person shall possess all
qualifications to vote in a general election under Texas law and be
a bona fide resident in the authority and in the precinct from which
he or she is elected or appointed. Each director shall subscribe to
the oath of office, with conditions in the oath as required by law
for members of the county commissioners court, shall execute a bond
for the faithful performance of his or her duties in the amount of
$10,000, and shall hold office until his or her successor has been
elected and qualified.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.053. BOARD ACTION; DUTIES; QUORUM; COMPENSATION
AND EXPENSES. (a) The board shall perform official actions by
motions or by resolutions, and a majority of its membership
constitutes a quorum for transaction of business. A majority of the
quorum present is sufficient in all official actions, including
final adoption of resolutions, except as otherwise specifically
provided in this chapter.
(b) The board shall hold regular meetings at least once each
month at times established in the authority's bylaws or by
resolution of the board. The president or any three board members
may call necessary special meetings in the administration of the
authority's business, but at least five days before the meeting
date for a special meeting, the secretary of the board shall mail
notice of the meeting to the current address of each board member.
Notice of any meeting may be waived in writing by a director.
(c) Expenses of directors incurred in connection with
performing their duties shall be reimbursed on the basis authorized
by the board. In addition to expenses, a per diem of not to exceed
$50 a day may be paid directors at the discretion of the board.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.054. OFFICERS. (a) The board shall elect
annually from among its members a president of the board. The
president shall preside at the meetings of the board and shall
perform all other functions that customarily are incident to his or
her office.
(b) One or more vice-presidents shall be elected annually by
the board from among its members, and if more than one is elected,
they shall be designated in numerical order, and in that numerical
order shall act as president in the event of the absence, inability,
or failure of the president or a higher-numbered vice-president to
act.
(c) A secretary and, at the option of the board, an
assistant secretary shall be elected annually by the board with the
board having discretion as to whether these officers are to be
chosen from among the members of the board. The secretary and
assistant secretary are charged with the duty of seeing that all
books and records of the authority are properly kept.
(d) Except in the case of the secretary and assistant
secretary, only members of the board are eligible to serve as
officers of the board.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.055. ADVISORY COUNCIL. (a) If the authority is
confirmed, an advisory council is created with authority to make
and submit recommendations to the board.
(b) The advisory council shall act by majority vote of its
duly qualified members. The membership of the advisory council
consists of one resident representative from each county within the
boundaries of the authority. Selection of these county
representatives on the advisory council is by written resolution of
each county commissioners court, filed with the authority, and each
representative shall serve at the will of the commissioners court
appointing him or her.
(c) No person may serve as a member of the board and as a
member of the advisory council at the same time, and any attempt to
do so disqualifies the person from serving as a member of the
advisory council.
(d) The first meeting of the advisory council is to be
called by the board within 30 days after the confirmation of the
authority. At the first meeting of the advisory council, the
president of the board shall preside for the purpose of the election
of a chairman, vice-chairman, and secretary of the advisory
council, each being elected for a term of one year by a majority
vote of the advisory council members. Also, at the first meeting of
the advisory council, an annual meeting date shall be determined
for the election of officers of the advisory council. The chairman
may call a meeting of the group by giving five days' notice of the
meeting by mail to each member.
(e) The chairman of the advisory council shall act as an ex
officio board member without the right to vote on the board and is
entitled to sit in all board meetings and report to the board the
action, if any, of the advisory council.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.056. EXECUTIVE DIRECTOR; EMPLOYEES. (a) The
board may employ an executive director for the authority and may
delegate full power and authority to him or her in the management
and operation of the affairs of the authority, subject only to the
orders of the board, and may determine his or her compensation. The
board may employ a deputy executive director with the authority the
board may delegate.
(b) The board may also employ a treasurer and other
employees including engineers, hydrologists, geologists, technical
experts, accountants, attorneys, economists, and assistants to its
officers, and determine the compensation of those employees,
including reimbursement of expenses, as it may deem appropriate to
the proper conduct of the authority's affairs. The board may
provide for the discharge of any employee.
(c) The treasurer of the authority has charge of its funds,
shall see that the funds are kept safely, and shall account for the
funds to the board. The funds of the authority are disbursed only
on checks, drafts, or other instruments signed by the treasurer and
other persons authorized by the board.
(d) The executive director, deputy executive director, and
treasurer each shall execute a bond in an amount as may be required
by the board, but in no event less than $50,000.
(e) All bonds required to be executed by the directors,
officers, and employees of the authority are to be executed by a
surety company authorized to do business in this state. The
authority may pay the premiums on the bonds. The directors may also
require bonds on any employee.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.057. AUTHORITY OFFICE. A regular office shall be
established and maintained for the conduct of the authority's
business which shall be at a location within the authority to be
determined by the board. The board may establish branch offices.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1989, 71st Leg., ch. 1248, § 76, eff.
Sept. 1, 1989.
SUBCHAPTER D. POWERS AND DUTIES
§ 64.091. PURPOSES. The authority is created:
(1) to obtain supplemental supplies of imported water
for use on an equitable basis within the boundaries of the
authority;
(2) to preserve, conserve, protect, replenish,
prevent waste, recharge, store, manage, treat, distribute, drain,
exchange, and sell imported water;
(3) to contract for imported water; and
(4) to provide for the storage, sale, management,
treatment, drainage, and distribution of imported water.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.092. GENERAL POWERS. In addition to those
specifically otherwise provided, the authority may exercise the
following powers:
(1) contract with the State of Texas or any state, the
United States, and any district, or any person for a supply of
imported water, for the financing and construction of works, for
the operation and maintenance of works, for the purchase of storage
space, and for any purpose consistent with this chapter;
(2) purchase, lease, store, control, conserve,
protect, distribute, process, treat, transport, utilize, contract
for, sell, exchange, and otherwise manage and deal with imported
water, and prevent waste of imported water;
(3) provide by purchase, contract, lease, gift, or in
any other lawful manner, and to develop all facilities and works
deemed necessary or useful for the purpose of storing, purchasing,
leasing, acquiring, controlling, conserving, protecting,
distributing, processing, treating, utilizing, contracting for,
exchanging, and selling imported water, and the transportation of
imported water to or from any point within the authority chosen by
the board for municipal, domestic, agricultural, livestock,
industrial, and other beneficial or useful purposes permitted by
law;
(4) construct, operate, repair, improve, maintain,
renew, replace, discontinue, relocate, and extend works;
(5) acquire and develop any available source of
imported water supply and construct, acquire, develop, operate, and
maintain all facilities deemed necessary or useful with respect to
an imported water supply;
(6) establish or otherwise provide for public parks
and recreational facilities, acquire land adjacent to any reservoir
in which the authority owns water storage rights for those
purposes, and contract for the lease of land acquired by it for
recreational or concession purposes under terms that the board may
determine;
(7) contract with districts and persons for the sale
and distribution of imported water, provided, however, that the
authority shall not contract with any person or other entity being
supplied water by an existing district unless the district is
unable or unwilling to make available adequate water to meet those
persons' or entities' requirements;
(8) exchange water over which the authority has
control for other property rights or things of value;
(9) acquire by purchase, construction, lease, gift, or
in any other lawful manner, and maintain, use, and operate property
of any kind or any interest in property within or without the
boundaries of the authority necessary for the exercise of the
powers, rights, functions, and purposes possessed by the authority
under this chapter;
(10) acquire by condemnation, property of any kind
except water or any interest in property except water necessary to
the exercise of the powers, functions, and purposes possessed by
the authority in the manner provided by Title 52, Revised Civil
Statutes of Texas, 1925, as amended, relating to eminent domain.
The amount and character of the property to be acquired shall be
determined by the board, provided, however, that as against
districts that have the power of eminent domain, the fee title may
not be condemned, but the authority may condemn only an easement;
and provided further that the power of eminent domain shall apply
only to property located within the boundaries of the authority;
(11) sell or otherwise dispose of surplus property of
any kind or any interest in property that is not necessary for the
operation of the authority, provided, that in all cases in which the
board considers the value of the property to be in excess of
$25,000, the property shall be sold only on competitive bids after
adequate advertisement as provided in Section 54.220(b) of this
code;
(12) formulate, promulgate, and enforce rules for the
purpose of conserving, preserving, and protecting imported water,
but those rules shall not supercede existing district rules
pertaining to all other water;
(13) formulate, promulgate, and enforce rules to
prevent waste of imported water and for the other purposes included
in this chapter;
(14) acquire land and the use of land for the
construction, erection, maintenance, replacement, alteration,
removal, improvement, and expansion of, and otherwise to deal with
works for the purpose of transporting imported water to and from
works and for the other purposes included in this chapter;
(15) have made, in cooperation with any governmental
or private entity or by competent professionals, surveys,
investigations, and studies for acquisition of supplies,
transportation, storage, distribution, sale, and management of
imported water, as well as the environmental, economic, legal, and
sociological impact and related problems, and determine the
quantity of water that may be available from various sources and
that may be feasible to market and use within the authority, taking
into consideration the improvements, developments, works, and
operations that may be required in connection with them;
(16) develop comprehensive plans for the realization
and carrying out of the purposes of the authority;
(17) enforce by injunction, mandatory injunction, or
other appropriate remedy in courts of competent jurisdiction, rules
adopted by the authority, provided that no rule shall be effective
until a brief resume of the rule has been published once a week for
two consecutive weeks in one or more newspapers individually or
collectively having general circulation within the authority and
the rule shall be effective not less than 14 days after the date of
first publication;
(18) in the event that the authority, in the exercise
of the power of eminent domain or power of relocation, or any other
power, makes necessary the relocation, raising, rerouting, or
changing the grade of, or altering the construction of, any
highway, railroad, electric transmission line, telephone or
telegraph properties and facilities, or pipeline, all necessary
relocations, raising, rerouting, changing of grade, or alteration
of construction shall be accomplished at the sole expense of the
authority;
(19) cooperate and contract with the State of Texas,
or any other state, the United States, any district, or any person
for an imported supply of water, for the purposes of financing or
construction of works, for the acquisition, purchase, extension, or
operation and maintenance of those works, for the assumption as
principal or guarantor of indebtedness, or for carrying out any
powers and purposes of the authority;
(20) utilize the subsurface formations for
underground storage and transmission of imported water and
subsequently recapture imported water placed in underground
storage by the authority at the same place or other locations away
from the locations where the water was placed in storage;
(21) make contracts and execute instruments necessary
to the exercise of the powers, functions, and purposes of the
authority;
(22) incur indebtedness for any of the purposes for
which the authority is created;
(23) borrow money for its lawful purposes, and,
without limitation to the generality of the foregoing, borrow money
and accept grants, gratuities, services, or other support from any
source, and in connection with any loan, grant, or other support,
enter into agreements as the board deems advisable;
(24) adopt, use, and alter a seal;
(25) sue and be sued;
(26) adopt bylaws for the management and regulation of
its affairs;
(27) fix and collect charges and rates for water
services and for water furnished by the authority, that shall be
uniform for each class of entity within the authority receiving
water or services;
(28) fix and collect assessments in accordance with
this statute;
(29) impose penalties for failing to pay charges,
assessments, and rates when due;
(30) levy, assess, and collect ad valorem taxes to
provide funds necessary to carry out the purposes, powers, and
functions granted the authority, provided, that the levy and
assessment of ad valorem taxes shall not exceed 50 cents on each
$100 of the fair market value of property;
(31) establish zones of benefit within the authority
that reflect the degree of benefit resulting to each zone from the
provision of an imported water supply from the authority, and levy
assessments in proportion to benefits;
(32) provide for the compilation of information on
facilities for producing imported water from subsurface formations
underlying the authority or use from imported water supplies;
(33) regulate, manage, and control activities on the
authority's property and protect the property from waste and
damage;
(34) make contracts, employ labor and other personnel,
and do all acts necessary for the full exercise of its powers,
functions, and purposes, and construction or other work may be
performed or carried out by contracts or by the authority;
(35) act jointly with or cooperate with the United
States, the state, any district, and any person or other entity to
carry out the provisions and purposes of this chapter, and in joint
or cooperative activity, the authority may act within or without
its boundaries; and
(36) do any and every lawful act within or without the
authority necessary in order that sufficient water may be made
available for any present or future beneficial use or uses of the
land or inhabitants within the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.093. CONTRACTS WITH DISTRICTS. (a) The authority
may cooperate with and enter into contracts with districts and
persons for the purpose of supplying and selling water to them. A
contract may be on terms and for the time the parties may agree, and
it may also provide that it will continue in effect until the
authority's bonds, specified in the contract, and refunding bonds
issued in lieu of those bonds, are fully paid.
(b) If the law requires a ratification of a proposed
contract by the electorate, the contract becomes effective only
when it is approved by a majority vote of the qualified voters
voting at an election held for that purpose in the affected
district, and if applicable, in the authority. The election shall
be called, conducted, and results canvassed and announced in the
manner provided in Chapter 54 of this code for tax bond elections.
(c) Should the board of directors, in regular meeting, adopt
a plan of financing involving the issuance of bonds, contracts, or
other obligations to be supported or secured wholly or partially by
revenues to be derived from contracts for the sale of water or other
services to one or more districts, the board shall promptly direct a
certified copy of its resolution to that effect, together with a
copy of the proposed contract, to each district in which the
election is to be held. In this resolution, the board may designate
a limit of time of not less than 60 days from the time of notice to
the district in which the district's governing body is to call the
contract election, if appropriate. If the governing body of any
district notified fails or refuses to call the election within the
specified time, or if the election is held but results adversely to
the approval of the proposed contract, the district is not entitled
to any of the rights under the proposed contract.
(d) After having negotiated to contract with the authority
for a water supply, no district may be eliminated from the
boundaries or jurisdiction of the authority by virtue of its
failure to call an election or approve a contract under the
procedures in this section, but on this failure, the authority is
not obligated to furnish the district the services or facilities to
be supplied or constructed with the proceeds of the authority's
bonds or other obligations, that are supported in any part by the
money due the authority under the contracts.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.094. AWARDING CONSTRUCTION OR PURCHASE
CONTRACTS. (a) The authority shall comply with the requirements
of Section 50.061 of this code when awarding a contract.
(b) Contracts for personal or professional services, and
contracts with any entity for emergency work, materials, or
services, and contracts with the United States, or the state or a
district are exempt from the requirements of Section 50.061 of this
code.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1989, 71st Leg., ch. 328, § 11, eff.
Sept. 1, 1989.
§ 64.095. CONTRACTS WITH THE UNITED STATES, THE STATE OF
TEXAS, OR THEIR AGENCIES; ELECTIONS. (a) The authority may
contract with the United States or the state and any of the agencies
of either under any of the federal or state laws for the
construction, operation, and maintenance of a work or facility by
which imported water may be supplied and distributed to the
authority under an act of congress or the legislature. In the event
a contract is proposed to be made under which the authority is to be
obligated to make payments wholly or partially from ad valorem
taxes or otherwise, the contract may not be entered into unless
authorized by an election at which a majority of the qualified
voters voting at the election favor the execution of the contract.
The procedures for calling the election, giving notice, and other
requirements are the same as those provided in Chapter 54 of this
code relative to issuance of bonds.
(b) In the event the authority enters into a contract with
the United States or the state or any of the agencies of either,
there may be no subsequent alteration of the territorial limits of
the authority, and no proceedings for the exclusion of any area from
the authority may be undertaken under the provisions of any law
unless the alterations or exclusions have first received the
approval of the United States or the state or its contracting
agency, as the case may be.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.096. MUNICIPAL UTILITY DISTRICT LAWS APPLICABLE
WHEN NOT IN CONFLICT. (a) All powers conferred by Chapter 54 of
this code relating to municipal utility districts are applicable to
the authority created under the provisions of this chapter insofar
as those powers are not in conflict with the provisions of this
chapter.
(b) Except as otherwise provided in this chapter, the
signing of petitions, the filing of petitions, the notices, public
hearings, voting, elections, canvassing of results, contest of
elections, and all other administrative and procedural matters
relating to formation, administration, and alterations of the
authority are subject to the requirements of Chapter 54 of this
code, and if the requirements are met, the proceedings are
conclusively presumed to be in accordance with all of the
requirements of the laws of this state.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.097. LAND TO REMAIN IN AUTHORITY. Once land is
included within the authority and the authority is confirmed, the
land may not be removed from the authority except as provided in
Subchapter J of this chapter. An unfavorable vote on any issue in
some portion of the authority does not constitute grounds for
excluding that portion from the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.098. ADOPTION OF RULES; PUBLIC POWERS AND
PENALTIES. (a) The board may adopt and enforce rules, subject to
the restrictions of Section 64.092(12) of this code, relating to
the quality of all water in and to flow into a reservoir or conduit
owned by the authority or that by contract or otherwise, it may
control to prevent trespass, vandalism, waste of water, or the
unauthorized use of water. The board may regulate residence,
hunting, fishing, boating, and camping, and all recreational and
business privileges above, on, and in the reservoir, conduit, or
any body of land or easement owned or controlled by the authority.
(b) On conviction in a court of competent jurisdiction of a
violation of a rule adopted under this section, a fine shall be
assessed in an amount of not less than $100 nor more than $1,000, or
confinement in the county jail shall be imposed for not less than
one day nor more than 30 days, or both. Each day of violation
constitutes a separate offense. All fines are to be promptly paid
to and become the exclusive property of the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.099. APPEAL. (a) An interested person affected
by a law, rule, order, or act entered, made, or adopted by the
authority who is dissatisfied with the law, rule, order, or act, is
entitled to file a suit in a court of competent jurisdiction in the
county in which the authority has its principal office to test the
validity of this chapter or a law, rule, order, or act, or any of
them. The suit shall be advanced for trial and be determined as
expeditiously as possible, and no postponement or continuance may
be granted except for a reason deemed imperative by the court. In
these trials, the burden of proof is on the party complaining of the
law, rule, order, or act, and the law, rule, order, or act is deemed
prima facie valid.
(b) The trial is de novo and the court or jury shall
determine independently all issues of fact and of law with respect
to the validity and reasonableness of the law, rule, order, or act.
(c) The provisions of this section are cumulative of all
rights of the affected parties and do not impair or restrict their
right to equitable relief.
(d) The authority is not required to give a cost or
supersedeas bond or to pay a cost deposit on any appeal from the
judgment of any court of this state.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.100. AUTHORITY MAY ACQUIRE WATER PERMITS. The
authority is authorized to acquire and own water permits on
compliance with the provisions of Chapter 11, Water Code.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.101. UNDERGROUND WATER RIGHTS. The ownership and
rights of the owner of the land, his or her lessees and assigns, in
underground water are recognized. Nothing in this chapter is to be
construed as depriving or divesting the owner, his or her assigns or
lessees, of the ownership or right subject to the rules promulgated
by the authority pursuant to this chapter. Underground water
naturally occurring within the import authority is not to be
construed as surplus or imported and the authority shall not buy,
sell, or transport that water as part of an import water supply.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.102. PRIOR DISTRICTS INVIOLATE. Nothing in this
chapter shall ever be construed as giving the Ogallala Water Import
Authority the right or the power to supercede, preempt, or
otherwise interfere with the exercise of the powers, rights,
duties, or functions of any other district existing as of the date
of creation of the Ogallala Water Import Authority. Each such prior
district shall continue to operate and carry out its authorized
functions after creation of the Ogallala Water Import Authority.
Provided, however, that this section shall not prevent any district
from entering into a contract with the Ogallala Water Import
Authority and the performance by the authority of such functions of
the district as may be made its responsibility on terms of such
contract acceptable to the district and the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
SUBCHAPTER E. GENERAL FISCAL PROVISIONS
§ 64.121. AUDITS. (a) The board shall keep complete
and accurate accounts, conforming to approved methods of
bookkeeping, and those accounts and contracts, documents, and
records of the authority are to be kept at its principal office and
shall be open to public inspection at all reasonable times.
(b) Within 90 days after the end of each calendar year, the
board shall have an audit made of books of account and financial
records of the authority for the preceding calendar year by an
independent, certified public accountant, or firm of certified
public accountants.
(c) Copies of the written report of the audit, certified to
by the accountant or accountants, shall be placed and kept on file
at the office of the authority and shall be open to public
inspection at all reasonable times. A copy of the audit shall be
filed with the commission.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.152,
eff. Sept. 1, 1985.
§ 64.122. AUTHORITY DEPOSITORY AND METHODS OF SELECTING
THE DEPOSITORY. (a) The board shall designate one or more banks
within the authority to serve as depository for the funds of the
authority. Funds of the authority shall be deposited in the
depository bank or banks, except those pledged to pay bonds that are
deposited with the trustee bank or paying agent named in the bond
proceedings and to the extent provided in the proceedings. To the
extent that funds in the depository bank and the trustee bank are
not insured by the F.D.I.C., they are to be secured in the manner
provided by law for the security of county funds.
(b) Before designating a depository bank or banks, the board
shall issue a notice stating the time and place the board will meet
to make the designation, and shall invite the banks in the authority
to submit applications to be designated depositories. The term of
service for depositories shall be prescribed by the board. The
notice shall be published one time in a newspaper or newspapers
published in the authority and specified by the board, and the
publication shall be completed at least 10 days before the date of
the board meeting.
(c) At the time mentioned in the notice, the board shall
consider the applications, the management and condition of the
banks filing them, and other matters as may be to the best interest
of the authority, and shall designate as depositories, the bank or
banks that offer the most favorable terms and conditions for the
handling of the funds of the authority, and that the board funds
have proper management and are in condition to warrant handling the
authority's funds.
(d) If no acceptable applications are received by the time
stated in the notice, the board shall designate a bank or banks
within or without the authority on terms and conditions
advantageous to the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.123. FINANCIAL AID. In consideration of the fact
that the authority may be incurring some obligations and making
some expenditures before funds are available to pay the obligations
and expenditures, for the purpose of providing funds needed to
procure necessary engineering or economic surveys or to prepare for
and conduct hearings and elections, the collection and compilation
of data relating to general conditions influencing the
determination of the character and extent of the improvements,
works, and facilities to be used in connection with the
accomplishment of any purpose of the authority, it is provided that
the state or any district wholly or partially located within the
authority may loan funds or its services for any or all of those
purposes. Any district located wholly or partially within the
authority may appropriate and spend money from its general funds or
funds legally available for that purpose, and loan the funds to the
authority. The authority may contract with the United States, the
state, or any district to repay any money advanced as a loan to the
authority or to reimburse the state or any district for the cost of
services performed.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
SUBCHAPTER F. BONDS
§ 64.131. ISSUANCE OF BONDS. For the purpose of
providing a source of imported water for beneficial purposes
permitted by law, and for the purpose of carrying out any other
authority conferred by this chapter, the authority may issue its
negotiable bonds to be payable from all or any part of its net
revenues or from taxes, or from both revenues and taxes of the
authority pledged by resolution of the board of directors. In
addition to the authority to issue bonds for those purposes, the
authority is further authorized to contract in any other lawful
manner and to prescribe the method of payment of any contract either
by the use of all or any part of its net revenues, taxes, or both.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.132. BOND CONDITIONS. Bonds may be authorized by
resolution of the board, bear the date or dates, mature at the time
or times, bear interest at the rate or rates, and be issued in the
denominations the board may determine. The bonds shall be signed by
the president and attested by the secretary, and have the seal of
the authority impressed on them. Bonds may be sold at the price and
under the terms determined by the board to be the most advantageous
and reasonably obtainable, provided that the interest cost to the
authority calculated by the use of standard bond interest tables
currently in use by insurance companies and investment houses does
not exceed 10 percent a year. Within the discretion of the board,
bonds may be made callable and subject to redemption before their
maturity at the times and at the prices prescribed in the
authorizing resolution. Interest on all bonds may be payable
annually or semiannually within the discretion of the board. Bonds
may be issued on one or more than one series and from time to time as
required in carrying out the purposes of this chapter. The bonds
shall 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 exchange of coupon bonds for
registered bonds or vice versa, and exchange of bonds of one
denomination for bonds of other denominations, and be payable at
the place or places within or without the State of Texas as the
board determines and prescribes in the resolution or resolutions
authorizing the bonds.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.133. SECURITY FOR BONDS. Bonds may be secured by a
pledge of all or any part of the net revenues or by all or any part
of the taxes of the authority or by the net revenues of any one or
more contracts or by other revenues in the manner specified by
resolution of the board. Any pledge may reserve the right under
conditions specified in the pledge to issue additional bonds which
are to be on a parity with or subordinate to the bonds then being
issued.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.134. LEVY OF TAXES TO PAY BONDS AND INTEREST. If
bonds are issued payable wholly or partially from ad valorem taxes,
it is the duty of the board to levy a tax sufficient to pay the bonds
and the interest on the bonds as the bonds and interest become due,
but the rate of the tax for any year may be fixed after giving
consideration to the money received from the pledged revenues that
may be available for the payment of the principal and interest to
the extent and in the manner permitted by the resolution
authorizing the issuance of the bonds.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.135. REVENUES TO PAY BONDS AND INTEREST. If bonds
or other contracts payable wholly or partially from revenues are
issued or entered into, it is the duty of the board to establish by
contract, with all member units that contract with it for a water
supply or water facilities, the rates or compensation for water
sold and services rendered by the authority sufficient to pay the
expenses of operating and maintaining the authority and its
facilities, and to pay as they mature all those obligations
incurred including the reserve and other funds as may be provided
for the bonds or other contracts under the terms of those
obligations, and as may be provided in the board's resolution
pertaining to those obligations.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.136. PROCEEDS OF BONDS. From the proceeds of the
sale of bonds, the authority may set aside an amount for the payment
of interest expected to accrue during construction and for a
reserve interest and sinking fund, which provisions are to be made
in the resolution authorizing the bonds. Proceeds from the sale of
bonds may also be used for the payment of all expenses necessarily
incurred in accomplishing the purposes for which the authority is
created, including expenses of issuing and selling bonds. Pending
the use of bond proceeds for the purpose for which the bonds were
issued, the board, in its discretion, may invest them in
obligations of the State of Texas or the United States, or in
obligations secured by the United States.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.137. DEFAULT ON BONDS. In the event of a default or
a threatened default in the payment of principal of or interest on
bonds payable wholly or partially from revenues, any court of
competent jurisdiction may, on petition of the holders of at least
25 percent of the outstanding bonds of the issue in default or
threatened with default, appoint a receiver with authority to
collect and receive all income of the authority except taxes,
employ and discharge agents and employees of the authority, take
charge of funds on hand except funds received from taxes that can be
identified and manage the proprietary affairs of the authority
without consent, interference, or hindrance by the directors. The
receiver may also be authorized to sell or make contracts for the
sale of water or renew contracts with the approval of the court
appointing him or her.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.138. APPROVAL AND REGISTRATION OF BONDS. Bonds
issued by the authority under this subchapter constitute negotiable
instruments within the meaning of the law of this state pertaining
to negotiable instruments. Before any bonds are sold by the
authority, a certified copy of the proceedings for the issuance
thereof, including the form of the bonds, together with any other
information which the attorney general may require, shall be
submitted to the attorney general, and if he or she finds that the
bonds are issued in accordance with the law, including compliance
with Section 54.516 of this code, he or she shall approve the bonds
and execute a certificate of approval that shall be filed in the
office of the state comptroller and shall be recorded in a record
kept for that purpose. No bonds are to be issued until registered
by the state comptroller, who is to register the bonds if the
attorney general has filed with the comptroller his or her
certificate approving the bonds and the proceedings for the
issuance of the bonds. If bonds or the proceedings pertaining to
bonds recite that they are secured by a pledge of the proceeds of a
contract made with the authority, a copy of the contract and
proceedings of the contracting parties shall be submitted to the
attorney general with the bond record, and if the bonds have been
duly authorized and the contract made in compliance with law, the
attorney general shall approve the bonds and contract and the bonds
shall be registered by the state comptroller. If approved, the
bonds and contract are valid and binding and incontestable for any
cause. Whenever the authority has issued bonds, including interim
or temporary bonds, or has contracted with the United States or the
State of Texas, or any corporation or agency of either or any other
entity in connection with the financing of its works or facilities,
the authority may validate the bonds or contracts by suit in the
manner and with the same effect as provided by Chapter 51 of this
code.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.139. INTERIM OR TEMPORARY BONDS. Pending the
issuance of definitive bonds, the authority is authorized to issue
and deliver interim or temporary bonds. The interim or temporary
bonds issued may be taken up with the proceeds of the definitive
bonds or the definitive bonds may be issued and delivered in
exchange for and in substitution of the interim or temporary bonds.
After any exchange and substitution, it is the duty of the authority
to file proper certificates with the state comptroller, as to the
exchange, substitution, and cancellation of the bonds. The
certificates are to be recorded by the state comptroller.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.140. REFUNDING BONDS. The board may issue
refunding bonds for the purpose of refunding any outstanding bonds
authorized by this subchapter and the interest on the bonds without
the necessity of an election. Refunding bonds may be issued to
refund more than one series of outstanding bonds, and in the case of
bonds secured in whole or in part by net revenues, the authority may
combine the pledges for the outstanding bonds for the security of
the refunding bonds and may secure them by other or additional
revenues. The provisions of this subchapter with reference to the
issuance of other bonds and their approval by the attorney general
and the rights and remedies of the holders are to be applicable to
refunding bonds. Refunding bonds are to be registered by the
comptroller on the surrender and cancellation of the bonds to be
refunded, but in lieu thereof, the resolution authorizing their
issuance may provide that they are to be sold and their proceeds
deposited in the bank where the original bonds are payable, in which
case the refunding bonds may be issued in an amount sufficient to
pay the interest on the original bonds to their option date or
maturity date, and the comptroller is to register them without
concurrent surrender and cancellation of the original bonds.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.141. SECURING BONDS WITH TRUST INDENTURE. Any
bonds, including refunding bonds, authorized by this subchapter,
not payable wholly from ad valorem taxes, may be secured
additionally by a trust indenture under which the trustee is a bank
having trust powers and is located either within or without the
State of Texas. The trust indenture or mortgage may include
provisions for a lien on all or any part of the physical properties
of the authority and franchises, easements, water rights and
appropriation permits, leases, and contracts, and all rights
appurtenant to these properties, vesting in the trustee, in the
event of default, power to operate the properties and all other
powers for the further security of the bonds. The trust indenture,
regardless of the existence of the deed of trust lien, may contain
any provisions prescribed by the board for the security of the bonds
and the preservation of the trust estate, including provision for
an amendment or modification of the trust indenture, and the
issuance of bonds to replace lost or mutilated bonds secured by the
trust indenture. Any purchaser in a sale under the deed of trust
lien where one is given is the owner of the properties, facilities,
and rights purchased and has the right to maintain and operate them
during the period prescribed by the trust indenture.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.142. APPROVAL OF BONDS AT AN ELECTION. No bonds
supported by taxes, except refunding bonds, may be issued unless
authorized by an election in the manner provided by Chapter 54 of
this code for bond elections.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.143. BONDS AS INVESTMENTS AND SECURITY. All bonds
of the authority are legal and authorized investments for banks,
savings banks, trust companies, building and loan associations,
savings and loan associations, insurance companies, fiduciaries,
trustees, guardians, and sinking funds of cities, towns, villages,
counties, school districts, or other political subdivisions of the
State of Texas, and for all public funds of the state or its
agencies, including the permanent school fund. The bonds are
eligible to secure the deposit of any and all public funds of the
State of Texas, and any and all public funds of cities, towns,
villages, counties, school districts, or other political
corporations or subdivisions of the State of Texas, and the bonds
are lawful and sufficient security for those deposits to the extent
of their par value when accompanied by all unmatured coupons
appurtenant thereto.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.144. DISTRICT FREE FROM TAXES. The accomplishment
of the purposes stated in this chapter being for the benefit of the
people of this state and for the improvement of their properties and
industry, the authority in carrying out the purpose of this chapter
will be performing an essential public function under the
constitution and is not required to pay any tax or assessments on
all or any part of the project, and the bonds or other obligations
issued under this subchapter and their transfer and the income from
the bonds including the profits on the sale of the bonds is at all
times free from taxation by the state or by any district, municipal
corporation, county, or other political subdivision or taxing
authority of the state, provided that the authority shall be
responsible for and subject to payment of ad valorem tax on all
leased or owned property within the state, but outside the
jurisdiction of the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
SUBCHAPTER G. TAXATION
§ 64.181. TAX PROCEDURES. After an election in which a
majority of those voting give their approval, taxes may be levied,
assessed, and collected by the authority on an ad valorem basis to
provide funds for all lawful purposes of the authority, including
maintenance, operation, administration, and other expenses.
Provisions of Chapter 54 of this code relating to the election for
voter approval and the levy, assessment, and collection of taxes,
including enforcement, and the processes for the collection of
delinquent taxes are applicable to an authority. Ad valorem taxes
assessed and collected by an authority are to be uniform and equal.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.182. TAX OFFICERS. (a) Where applicable and not
in conflict with this subchapter, the laws contained in Chapter 54
of this code, with reference to tax assessors and collectors,
boards of equalization, tax rolls, and the levy, assessment, and
collection of taxes and delinquent taxes are applicable to the
authority, except that the board of equalization to be appointed
each year by the board is to consist of at least one qualified
resident property taxpayer in each county, any portion of which is
within the authority.
(b) Instead of proceeding for the assessment, equalization,
and collection of taxes in the manner provided in this chapter, the
board may adopt an order to have the taxes of the authority assessed
and collected by the assessor and collector of taxes of any
political subdivision of the state. On the adoption of the order,
the taxes shall be assessed and collected by these officials and
turned over to the authority depository. The compensation of these
officials shall be as agreed upon by the officials and the
authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
SUBCHAPTER H. ASSESSMENTS
§ 64.211. AUTHORIZATION OF ASSESSMENTS. For the
purpose of making payments pursuant to contracts entered into by
the authority with the United States, the state, or districts, the
authority, in addition to the revenues and taxes otherwise provided
in this chapter, may make assessments apportioned in accordance
with the benefits and, for this purpose, may establish zones of
benefit which reflect the degree of benefit resulting to each zone
from the contracts.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.212. CONSIDERATIONS IN MAKING ASSESSMENTS AND
ESTABLISHING ZONES. (a) In ascertaining the benefits derived
through a contract, and in establishing zones of benefit, the
authority shall consider all of the following:
(1) improvement in the underground water supply;
(2) the contribution to the underground water supply
by water made available independently of the authority;
(3) the adequacy of the water supply made available
independently of the authority;
(4) the prospective need for a water supply;
(5) extractions from the underground water supply in
excess of natural and artificial recharge, not including naturally
occurring underground water;
(6) the economic impact resulting from the water
supply made available under the contract or contracts;
(b) provided, however, areas not receiving a water supply or
a direct improvement in the underground water supply by reason of
the contract shall not be assessed;
(c) nor shall any area not within the authority be assessed
by the authority; and
(d) benefits derived from all imported water used in similar
zones of benefit shall be given equal consideration and assessed on
an equal basis.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.213. NOTICE AND HEARING. (a) No assessment is to
be levied under this subchapter unless the board, by resolution,
declares that it intends to do so and that a public hearing is held
on the assessment at a specified day, hour, and place within the
proposed zone of benefit at which all interested persons may appear
and be heard.
(b) Notice of this resolution shall be published once a week
for two consecutive weeks in a newspaper or newspapers of general
circulation in the authority and in the general area of the proposed
zone of benefit.
(c) The hearing may be adjourned from time to time at the
discretion of the board, and at the conclusion of the hearing, the
board may declare the zone or zones of benefit established and the
assessment to be levied under this subchapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.214. BASIS OF ASSESSMENT. Assessments made within
zones of benefit shall be levied on all taxable property within the
zone of benefit on an ad valorem basis.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.215. ELECTION. Before an assessment may be levied
and collected in a zone of benefit, an election shall be held in the
zone, as designated by the authority, in the same manner and under
the same procedure as an election for a tax election conducted under
Chapter 54 of this code.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
SUBCHAPTER I. ANNEXATION
§ 64.251. ANNEXATION AUTHORITY. Additional territory
may be added to the authority with its prior consent by annexation
in the manner provided in this subchapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.252. PETITION FOR ANNEXATION. (a) A petition
requesting annexation, signed by at least 50 or by a majority of the
qualified voters residing within the territory to be annexed, who
own taxable property in the territory and who have duly rendered the
property for taxation to the city, town, county, or state, shall be
filed with the board.
(b) The petition shall describe the territory proposed to be
annexed by metes and bounds or by other appropriate description
which fully identifies the territory in compliance with the laws of
this state.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.253. HEARING. If the petition is signed by the
required number of qualified voters and complies with Section
64.252 of this code, the board, provided two-thirds of all members
vote in favor thereof, shall adopt a resolution stating the
conditions, if any, under which the territory may be annexed to the
authority, and shall set a time and place for a hearing to be held on
the questions of whether the territory will be benefitted by the
proposed annexation, whether the annexation will result in an undue
burden or disadvantage to the authority, and whether an election to
approve the annexation should be called.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.254. NOTICE OF HEARING. (a) Notice of the
adoption of a resolution setting the time and place of hearing shall
be published at least one time in one or more newspapers designated
by the board of directors, and the newspaper or newspapers
individually or collectively shall have general circulation in the
authority and in the territory proposed to be annexed. The notice
shall be published at least 10 days before the date of the hearing.
(b) The notice shall describe the territory in the same
manner as the petition.
(c) At least 30 days before the hearing, the secretary of
the board also shall send, by certified mail, a notice of the
hearing addressed to each of the following persons and entities:
(1) the mayor and the elected governing body of each
incorporated city or town located in the existing authority;
(2) the mayor and the elected governing body of each
incorporated city or town located in the territory proposed to be
annexed;
(3) the county judge and commissioners court of each
county that is located in whole or in part in the authority;
(4) the county judge and the commissioners court of
each county that is located in whole or in part in the territory
proposed to be annexed; and
(5) each district that has previously entered into a
written contract to purchase water from the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.255. HEARING PROCEDURE. (a) Interested persons
who reside within the authority or within the territory seeking
annexation may appear at the hearing and offer evidence for or
against the proposed annexation.
(b) The hearing may proceed in the order and under the rules
prescribed by the board, and the hearing may be recessed from time
to time.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.256. FINDINGS AND RESOLUTION; ELECTION. If, at
the conclusion of the hearing, the board finds that the land in the
territory will be benefitted by the proposed annexation, and
further finds that the proposed annexation will not result in an
undue burden or disadvantage to the existing authority, it shall
adopt a resolution calling an election in the authority and in the
territory to be annexed, stating the proposition or propositions to
be voted on, the date of the election, and the place or places of
holding the election, and appointing a presiding judge for each
voting place. The presiding judge shall appoint the necessary
assistant judges and clerks to assist in holding the election. The
authority is authorized to conduct the elections.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.257. NOTICE OF ELECTION. Notice of election,
stating the election date, the proposition or propositions to be
voted on, the conditions under which the territory may be annexed,
or making reference to the resolution of the board of directors
fixing the conditions, and the place or places for holding the
election, shall be published at least one time in a newspaper or
newspapers designated by the board and published in the territory
to be annexed, the newspaper or newspapers individually or
collectively having general circulation in the territory, and also
published one time in a newspaper or newspapers designated by the
board and published within the authority, such newspaper or
newspapers individually or collectively having general circulation
in the authority. Each publication shall be made at least 10 days
before the day set for the election. If, in the territory or in the
authority, no newspaper or newspapers qualify, the authority or
territory may accomplish publication by publishing at least 10 days
before the date set for the election in a newspaper or newspapers,
designated by the board, which individually or collectively have
general circulation within the territory or the authority, as the
case may be.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.258. VOTER QUALIFICATION; ELECTION
PROCEDURE. The qualifications of voters in elections held under
this subchapter are those specified in the constitution and the
procedures for conducting elections and for voting are those
specified in the Texas Election Code, except as otherwise provided
by this chapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.259. CONDUCT OF ELECTIONS. The board may call,
supervise, conduct, make returns, canvass, and declare results, and
otherwise provide for the proper conduct of elections.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.260. CANVASS AND ELECTION RESULTS. (a) Not less
than three nor more than seven days after the election, or as soon
after that time as practicable, the board shall canvass the returns
and shall adopt a resolution declaring the results.
(b) If the resolution shows that a majority of the votes
cast in the election held within the authority and a majority of the
votes cast in the election held within the territory both favor the
annexation, the annexation shall be considered to be fully
accomplished as of the time the board declares the results, and the
annexation shall be incontestable except in the manner and within
the time for contesting elections under Chapter 54 of this code.
(c) A certified copy of the order shall be recorded in the
deed records of the county, and in each of the counties if there are
more than one in which the territory is located.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.261. ASSUMPTION OF DEBT; TAXES. (a) In calling
an election for the proposition of annexation of territory, the
board of directors shall include as a part of the same election, the
proposition of assumption of the proposed territory's
proportionate part of all tax supported indebtedness and
obligations of the authority then outstanding and in force and in
the case of bonds, those previously voted, but not yet sold.
(b) The levy and collection of ad valorem taxes on taxable
property in the territory are on the same basis as taxes are levied
on the remainder of the authority.
(c) Unless the board finds it inequitable to do so at the
same election there may be submitted in the territory to be annexed
a proposition for assessment and collection of taxes in the
territory to enable the territory to pay the authority, in
installments as may be required by the board, an amount of money to
be determined by the board which represents equitable reimbursement
for a proper proportionate share of costs that the authority has
previously paid or incurred for work or works which may afford
benefits to the territory.
(d) If each of the propositions submitted carries by a
majority vote, both in the territory and in the authority, the
territory shall be annexed and shall become a part of the authority.
Otherwise, the territory is not annexed.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.262. OTHER METHOD OF ANNEXATION. The owner or
owners of land contiguous to an authority or otherwise may be
included in the authority in the same manner and under the same
conditions as provided by Sections 54.711 through 54.715 of this
code.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.263. FURNISHING DESCRIPTION. The board shall
furnish the commission a detailed description of land annexed to
the authority within 30 days after the annexation.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979. Amended by Acts 1985, 69th Leg., ch. 795, § 1.151,
eff. Sept. 1, 1985.
SUBCHAPTER J. DISANNEXATION
§ 64.301. DISANNEXATION AUTHORITY. A county in the
authority may be disannexed from the authority in the manner
provided in this subchapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.302. PETITION FOR DISANNEXATION. (a) A petition
requesting disannexation, signed by at least five percent of the
qualified voters residing within the county to be disannexed, who
own taxable property in the county and who have duly rendered the
property for taxation to the county or to the state, shall be filed
with the board. An election held under this section may not be held
more than one time every 12 months.
(b) The petition shall name the county to be disannexed and
shall request the board to call and hold an election in the county
to determine whether or not the qualified voters of the county
desire that the county be disannexed from the authority.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.303. ELECTION. On receiving a petition under
Section 64.302 of this code, the board shall adopt a resolution
calling an election in the county named in the petition, stating the
proposition or propositions to be voted on, the date of the
election, and the place or places of holding the election, and
appointing a presiding judge for each voting place. The presiding
judge shall appoint the necessary assistant judges and clerks to
assist in holding the election. The authority is authorized to
conduct the election.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.304. NOTICE OF ELECTION. Notice of election,
stating the election date, the proposition or propositions to be
voted on, and the place or places for holding the election, shall be
published at least one time in a newspaper or newspapers designated
by the board and published in the county to be disannexed, the
newspaper or newspapers individually or collectively having
general circulation in the county. Publication of notice shall be
made at least 10 days before the day set for the election. If, in
the county, no newspaper or newspapers qualify, the authority may
accomplish publication by publishing at least 10 days before the
date set for the election in a newspaper or newspapers, designated
by the board, which individually or collectively have general
circulation within the county.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.305. VOTER QUALIFICATION; ELECTION
PROCEDURE. The qualifications of voters in elections held under
this subchapter are those specified in the constitution and the
procedures for conducting elections and for voting are those
specified in the Texas Election Code, except as otherwise provided
by this chapter.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.306. CONDUCT OF ELECTIONS. The board may call,
supervise, conduct, make returns, canvass, and declare results, and
otherwise provide for the proper conduct of elections.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.307. CANVASS AND ELECTION RESULTS. (a) Not less
than three nor more than seven days after the election, or as soon
after that time as practicable, the board shall canvass the returns
and shall adopt a resolution declaring the results.
(b) If the resolution shows that a majority of the votes
cast in the election held within the county favor the
disannexation, the disannexation shall be considered to be fully
accomplished as of the time the board declares the results, and the
disannexation shall be incontestable except in the manner and
within the time for contesting elections under Chapter 54 of this
code.
(c) A certified copy of the order shall be recorded in the
deed records of the county.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
§ 64.308. TAXES ON DISANNEXED LAND. (a) If a county is
disannexed from the authority at a time when the authority has
outstanding debt, the disannexed county is not released from the
payment of its pro rata share of the indebtedness.
(b) The authority shall continue to levy taxes each year on
property in the county at the same rate levied on other property of
the authority, until the taxes collected from the county equal its
pro rata share of the indebtedness of the authority at the time of
the disannexation of the county.
(c) The taxes collected under Subsection (b) of this section
shall be charged only with the cost of levying and collecting the
taxes and shall be applied exclusively to the payment of the pro
rata share of the indebtedness.
Added by Acts 1979, 66th Leg., p. 2085, ch. 816, § 1, eff. Aug.
27, 1979.
