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2005 Texas Water Code CHAPTER 64. WATER IMPORT AUTHORITIES
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.
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