AUXILIARY WATER LAWS

CHAPTER 1. USE OF STATE WATER




Art. 7621f. Sale or disposal of salt water for pollution control              

Contracts for pollution control;  terms

Section 1. Any water power control district heretofore organized or 
hereafter organized is authorized to enter into contracts with any 
person, firm or corporation or one or more of either, for the sale 
or disposal of salt water.  Provided, no such contract shall be 
entered into unless it is determined by the Board of Directors of 
such District that such contract is needed for the purpose of 
pollution control and unless any such contract in the opinion of 
such Board of Directors is reasonably calculated to achieve such 
purpose.  If it is determined by the Board of Directors of any such 
District that in order to effect the sale or disposal of salt water 
that it is necessary to guarantee a constant flow of water under any 
such contract, then fresh water may be included, but only to the 
extent it is necessary in order to achieve pollution control 
through disposing of salt water.  Such contracts may be for a period 
of time and on such terms as may be deemed necessary by any such 
Board of Directors.

Revenue bonds;  purposes;  sale;  form, conditions and details

Sec. 2. Any water power control district is authorized to issue 
revenue bonds, without an election, for the purpose of the 
construction and acquisition of pipe lines, pumps and all 
facilities necessary for the sale or disposal of salt water for 
pollution control.  Any such bonds shall be authorized by such Board 
of Directors, from time to time, and in such amounts as it shall 
consider necessary.  All such bonds shall be fully negotiable and 
may be made redeemable before maturity, at the option of the Board 
of Directors of any such District, at such price or prices and under 
such terms and conditions as may be fixed by such Board of Directors 
prior to the issuance of such bonds.  Such Board of Directors may 
sell such bonds in such manner, either at public or at private sale, 
and for such price as it may determine to be for the best interest of 
the District, but no such sale shall be made at a price so low as to 
require the payment of interest on the money received therefor at 
more than six (6%) per cent per annum, computed with relation to the 
absolute maturity of the bonds in accordance with standard tables 
of bond values, excluding however, from such computation the amount 
of any premium to be paid on redemption of any bonds prior to 
maturity.  Subject to the restrictions contained in this Act each 
such Board of Directors is given complete discretion in fixing the 
form, conditions and details of such bonds, and such bonds may be 
refunded or otherwise refinanced whenever said Board of Directors 
deems such action to be appropriate or necessary.

Any such bonds may be secured by a pledge of the revenues to be 
received by the District from one or more contracts entered into 
between the District and any person, firm or corporation, in the 
manner and to the extent provided in the order of the Board of 
Directors authorizing such bonds.  Any such bonds shall be special 
obligations of the District issuing same, payable solely from the 
revenues pledged to their payment.  Any such bonds shall contain the 
following statement:

"The holder hereof shall never have the right to demand payment 
hereof from funds raised or to be raised by taxation."

Contracts with non-profit corporations;  acceptance of works or 
facilities

Sec. 3. If any water power control district enters into a contract 
with a non-profit corporation whereby such non-profit corporation 
obligates itself to provide works or facilities to accomplish 
pollution control and issues its bonds to secure funds to 
accomplish same, the District is hereby authorized to accept all 
such works or facilities from such non-profit corporation at the 
time and in the manner provided in the contract and in the indenture 
securing such non-profit corporation's obligations.

Bond issues involving federal funds;  approval

Sec. 3-a. Approval must be acquired from the Texas Water Commission  
pursuant to Article 7880-139, Vernon's Civil Statutes, as amended, 
when issuing bonds involving Federal funds.

Examination, approval and registration of bonds

Sec. 4. Prior to delivery thereof, all bonds authorized to be issued 
hereunder and the record relating to their issuance shall be 
submitted to the Attorney General of Texas for examination;  and if 
he finds that they have been issued in accordance with the 
Constitution and this Act, and that they will be binding special 
obligations of the District authorizing their issuance, he shall 
approve them, and thereupon they shall be registered by the 
Comptroller of Public Accounts of the State of Texas, and after such 
approval and registration they shall be incontestable.

Acts 1965, 59th Leg., p. 1509, ch. 655, eff. Aug. 30, 1965.