Texas Water Code
CHAPTER 58. IRRIGATION DISTRICTSCode Resources
Texas Resources
Texas Website
Texas Governor
Texas Legislature
Texas Courts
Search this Code
in Google Scholar
on the Web
Google Web Search
MSN Web Search
Yahoo! Web Search
in the News
Google News Search
Google News Archive Search
Yahoo! News Search
in the Blogs
BlawgSearch.com Search
Google Blog Search
Technorati Blog Search
in other Databases
Google Book Search
WATER CODE CHAPTER 58. IRRIGATION DISTRICTS SUBCHAPTER A. GENERAL PROVISIONS § 58.001. DEFINITIONS. In this chapter: (1) "District" means an irrigation district. (2) "Board" means the board of directors of a district. (3) "Director" means a member of the board of directors of a district. (4) "Commissioners court" means the commissioners court of the county in which a district or part of a district is located. (5) "Commission" means the Texas Natural Resource Conservation Commission. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1981, 67th Leg., p. 984, ch. 367, § 40, eff. June 10, 1981; Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.080, eff. Aug. 12, 1991.SUBCHAPTER B. CREATION OF DISTRICT; CONVERSION OF DISTRICT § 58.011. CREATION OF DISTRICT. An irrigation district may be created under and subject to the authority, conditions, and restrictions of either Article III, Section 52, of the Texas Constitution, or Article XVI, Section 59, of the Texas Constitution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.012. COMPOSITION OF DISTRICT. (a) A district may include all or part of one or more counties, including any town, village, or municipal corporation, and may include any other political subdivision of the state or any defined district, providing the land contained therein is agricultural in character. (b) The areas composing a district do not have to be contiguous but may consist of separate bodies of land separated by land not included in the district; however, each segregated area, before it may be included in the district, must cast a majority vote in favor of the creation of the district. (c) No district may include territory located in more than one county except by a majority vote of the electors residing within the territory in each county sought to be included in the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.013. PETITION. (a) A petition requesting creation of a district shall be signed by a majority of the persons who hold title to land in the proposed district which represents a total value of more than 50 percent of the value of all the land in the proposed district as indicated by the county tax rolls. If there are more than 50 persons holding title to land in the proposed district, the petition is sufficient if signed by 50 of them. (b) The petition may be signed and filed in two or more copies. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.014. CONTENTS OF PETITION. The petition shall include: (1) the name of the district; (2) the area and boundaries of the district; (3) the provision of the Texas Constitution under which the district is to be organized; (4) the purpose or purposes of the district; (5) a statement of the general nature of the work to be done and the necessity and feasibility of the project, with reasonable detail and definiteness to assist the court or commission passing on the petition in understanding the purpose, utility, feasibility, and need; and (6) a statement of the estimated cost of the project based on the information available to the person filing the petition at the time of filing. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.015. PLACE OF FILING; RECORDING. (a) The petition shall be filed in the office of the county clerk of the county in which the district is located. If land in more than one county is included in the district, copies of the petition certified by the clerk shall be filed in the office of the county clerk of each county in which a portion of the district is located. (b) The petition shall be recorded in a book kept for that purpose in the office of the county clerk. (c) If more than one petition is filed and the petitions are identical except for the signature, one copy of the petition shall be recorded and all signatures on the other petitions shall be included. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.016. BOARD OR COMMISSION TO CONSIDER CREATION OF DISTRICT. If the land to be included in a district is within one county, the creation of the district shall be considered and ordered by the commissioners court, but if the land to be included in a district is in two or more counties, the creation of the district shall be considered and ordered by the commission. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.017. SINGLE-COUNTY DISTRICT; HEARING. (a) If a petition is filed for the creation of a district within one county, the county judge shall issue an order setting the date of hearing on the petition by the commissioners court and shall endorse the order on the petition or on a paper attached to the petition. (b) After the order is issued, the county clerk shall issue notice of the hearing. (c) The petition may be considered at a regular or special session of the court. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.018. SINGLE-COUNTY DISTRICT; NOTICE OF HEARING. (a) The notice of hearing on the petition shall include a statement of the nature and purpose of the district and the date, time, and place of hearing. (b) The notice shall be prepared with one original and three copies. The county clerk shall retain one copy of the notice in his files and deliver the original and two copies to the county sheriff. (c) The sheriff shall post one copy of the notice at the courthouse door 15 days before the day of the hearing and shall publish one copy in a newspaper of general circulation in the county once a week for two consecutive weeks. The first newspaper publication shall be made at least 20 days before the day of the hearing. (d) Before the hearing, the sheriff shall make due return of service of the notice with copy and affidavit of publication attached to the original. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.019. SINGLE-COUNTY DISTRICT; NAME. (a) A district located in one county may be named the ________ County Irrigation District Number ________ (insert the name of the county and proper consecutive number). (b) A district may be known and designated by any term descriptive of the location of the district and descriptive of the principal powers to be exercised by the district; however, the word "district" shall be included in the designation and a consecutive number shall be assigned to it if other districts of the same name have been created in the county. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.020. SINGLE-COUNTY DISTRICT; TESTIMONY AT HEARING. (a) At the hearing on the petition, any person whose land is included in or would be affected by the creation of the district may appear and contest the creation of the district and may offer testimony to show that the district: (1) is or is not necessary; (2) would or would not be a public utility or benefit to land in the district; and (3) would or would not be feasible or practicable. (b) The hearing may be adjourned from day to day. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.021. SINGLE-COUNTY DISTRICT; GRANTING OR REFUSING PETITION. (a) The commissioners court or the commission shall grant the petition requesting the creation of a district if it appears at the hearing that: (1) organization of the district as requested is feasible and practicable; (2) the land to be included and the residents of the proposed district will be benefited by the creation of the district; (3) there is a public necessity or need for the district; and (4) the creation of the district would further the public welfare. (b) If the commissioners court or the commission fails to make the findings required by Subsection (a) of this section, it shall refuse to grant the petition. (c) If the commissioners court or the commission finds that any of the land sought to be included in the proposed district will not be benefited by inclusion in the district, it may exclude that land not to be benefited and shall redefine the boundaries of the proposed district to include only the land that will receive benefits from the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.022. SINGLE-COUNTY DISTRICT; APPEAL FROM ORDER OF COMMISSIONERS COURT. (a) If the commissioners court grants or refuses to grant the petition, any person who signed the petition or any person who appears and protests the petition and offers testimony against the creation of the district may appeal from the order of the court by giving notice of appeal in open court at the time of the entry of the order, which shall be entered on the court's docket, and by filing with the clerk of the commissioners court within five days a good and sufficient appeal bond in the amount of $2,500. (b) The appeal bond shall be approved by the clerk of the commissioners court payable to the county judge conditioned for the prosecution of the appeal with effect and the payment of all costs incurred with the appeal in the event the final decree of the court is against the appellant. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.023. SINGLE-COUNTY DISTRICT: RECORD ON APPEAL; NOTICE OF APPEAL. (a) On completion of an appeal as provided in Section 58.022 of this code, the clerk of the commissioners court shall, within 10 days, prepare a certified transcript of all orders entered by the commissioners court and transmit them with all original documents, processes, and returns on processes to the clerk of the district court to which the appeal is taken. (b) All persons shall be charged with notice of the appeal without notice or service of notice. No person who fails to appear by petition, in person, or by attorney in the commissioners court may be permitted to intervene in the district court trial. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.024. SINGLE-COUNTY DISTRICT: HEARING IN DISTRICT COURT; PROCEDURE. (a) The district court, either in term time or in vacation time, shall schedule the appeal for hearing with all reasonable dispatch. (b) In the proceeding in the district court, formal pleadings shall not be required but, with the court's permission, may be filed. (c) The trial and decision shall be by the court without the intervention of a jury, and the hearing shall be conducted as though the jurisdiction of the district court were original jurisdiction. (d) The following matters may be contested in the district court: (1) all matters that were or might have been presented in the commissioners court; (2) the validity of the Act under which the district is proposed to be created; and (3) the regularity of all previous proceedings. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, § 4(47), eff. Aug. 31, 1981. § 58.025. SINGLE-COUNTY DISTRICT: JUDGMENT OF DISTRICT COURT; APPEAL. (a) In the appeal, the district court shall apply to the determination its full powers to the end that substantial justice may be done. (b) An appeal from the judgment of the district court may be taken as in other civil causes, but appeals filed under Section 58.022 of this code shall be given precedence on the docket of any higher court over all causes that are not of similar public concern. (c) The final judgment of the district court, or other court to which an appeal may be prosecuted, shall be certified and transmitted to the clerk of the commissioners court with all original documents and processes which were transmitted from the commissioners court to the district court on appeal. (d) The commissioners court shall enter its order on the petition to conform to the decree entered by the court of final jurisdiction and shall enter other and further orders as may be required by law to execute the intent of the certified decree. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.026. SINGLE-COUNTY DISTRICT: APPOINTMENT OF DIRECTORS; BOND. (a) If the commissioners court grants a petition for creation of a district, it shall appoint five directors who shall serve until their successors are elected or appointed in accordance with law. (b) Each director shall, within 15 days after appointment, file his official bond in the office of the county clerk, and the county clerk shall present the bond to the county judge for approval. The county judge shall pass on the bond and approve it, if it is proper and sufficient, or disapprove it and shall endorse his action on the bond and return it to the county clerk. (c) If approved, the bond of a director shall be recorded in a record kept for that purpose in the office of the county clerk, but if a bond is not approved, a new bond may be furnished within 10 days after disapproval. (d) If any director appointed under this section fails to qualify, the commissioners court shall appoint another person to replace him. (e) Each director appointed under this section shall take the oath of office as provided by Section 58.077 of this code. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.027. MULTICOUNTY DISTRICT: CONSIDERATION BY COMMISSION. (a) The commission shall have exclusive jurisdiction and power to consider and determine all petitions for creation of a district that will include land or property located in two or more counties. (b) The orders of the commission concerning the organization of a district shall be final, unless an appeal is taken from the orders as provided in this subchapter. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 36, eff. Sept. 1, 1997. § 58.028. MULTICOUNTY DISTRICT: NOTICE AND HEARING ON DISTRICT CREATION. When a petition is filed, the commission shall give notice of an application in the manner provided in Section 49.011 and may conduct a hearing on the application if the commission determines that a hearing is necessary under that section. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 37, eff. Sept. 1, 1997. § 58.030. MULTICOUNTY DISTRICT: CONSIDERATION BY COMMISSION; PROCEDURE. (a) The commission shall consider and determine on the issues a petition filed under Section 58.028. (b) The commission shall be governed by the provisions of Section 58.021. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 38, eff. Sept. 1, 1997. § 58.031. MULTICOUNTY DISTRICT: APPEAL FROM COMMISSION DECISION. (a) When the commission grants or refuses a petition, any person who comes within the requirements specified in Sections 58.020-58.025 of this code may prosecute an appeal from the judgment of the commission under Sections 58.022-58.025 of this code. (b) The appeal may be taken to any district court in any county in which part of the proposed district is located or to a district court in Travis County. (c) The time within which an appeal bond may be approved and filed is 15 days after the entry of the final order by the commission. (d) On the perfection of the appeal, the appellant shall pay the actual cost of the transcript of the record, which will be assessed as part of the costs incurred on the appeal. (e) Whenever practicable, the original documents and processes with the returns attached shall be sent to the district court. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.032. MULTICOUNTY DISTRICT: APPOINTMENT OF DIRECTORS BY COMMISSION; BOND. (a) If the commission grants the petition for creation of the district, it shall appoint five directors, who shall serve until their successors are elected or appointed. (b) A certified copy of the order of the commission granting a petition and naming the directors shall be filed in the office of the county clerk of each county in which a portion of the district is located. (c) Each director named in the order shall, within 15 days after appointment, file his official bond in the office of the county clerk of the county of his residence. The county clerk shall present the bond to the county judge for approval. (d) The county judge shall act on each bond in the manner provided in Section 58.026 of this code. (e) If any director appointed under this section fails to qualify, the commissioners court of the county in which he lives shall appoint some qualified person to replace him. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.035. INCLUSION OF CITY, TOWN, OR MUNICIPAL CORPORATION IN DISTRICT. (a) No city, town, or municipal corporation may be included within any district created under this chapter unless the proposition for the creation of the district has been adopted by a majority of the electors in the city, town, or municipal corporation. (b) Any municipal corporation included within a district shall be a separate voting district, and the ballots cast within the municipal corporation shall be counted and canvassed separately from the remainder of the district. (c) No district that includes a city, town, or municipal corporation may include land outside of the municipal corporation unless the election to confirm and ratify the creation of the district favors the creation of the district independent of the vote within the municipal corporation. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.036. CONFIRMATION ELECTION IN DISTRICT INCLUDING LAND IN MORE THAN ONE COUNTY. No district, the major portion of which is located in one county, may be organized to include land in another county unless the election held in the other county to confirm and ratify the creation of the district is adopted by those voting in the other county. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.037. EXCLUSION OF PARTS OF DISTRICT; DISSOLUTION. (a) If any portion of a district governed by Sections 58.035 and 58.036 of this code votes against the creation of the district and the remainder of the district votes for the creation, the district is confirmed and ratified in those portions of the district voting for the creation, and the district is composed only of those portions. (b) The excluded portions of the district shall be excluded from all debts and obligations incurred after the election; however, all land and property included in the original district shall be subject to the payment of taxes for the payment of all debts and obligations, including organizational expenses, incurred while it was a part of the district. (c) If a district is created and portions of the proposed district are excluded by the vote in those portions, 10 percent of the voters in the district may file with the Board a petition asking for a new election on the issue. A new election shall be ordered and held for the remaining portion of the district or the district organization may be dissolved by order of the board and a new district formed. (d) A petition requesting a new election shall be filed within 30 days after the day on which the result of the election is canvassed and declared by the board. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.038. CONVERSION OF CERTAIN DISTRICTS INTO DISTRICTS OPERATING UNDER THIS CHAPTER. (a) Any water improvement district or water control and improvement district which furnishes water for irrigation and does not furnish treated water or sewer services may be converted into a district operating under this chapter. (b) The governing body of a district which desires to convert into a district operating under this chapter shall adopt and enter in the minutes of the governing body a resolution declaring that, in its judgment, conversion into an irrigation district operating under this chapter and under Article XVI, Section 59, of the Texas Constitution, would serve the best interest of the district and would be a benefit to the land and property included in the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.039. CONVERSION OF DISTRICT; NOTICE. (a) Notice of the adoption of a resolution under Section 58.038 of this code shall be given by publishing the resolution in a newspaper with general circulation in the county or counties in which the district is located. (b) The notice shall be published once a week for two consecutive weeks with the first publication not less than 14 full days before the time set for a hearing. (c) The notice shall: (1) state the time and place of the hearing; (2) set out the resolution in full; and (3) notify all interested persons to appear and offer testimony for or against the proposal contained in the resolution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.040. CONVERSION OF DISTRICT; FINDINGS. (a) If, on a hearing, the governing body of the district finds that conversion of the district into one operating under this chapter would serve the best interest of the district and would be a benefit to the land and property included in the district, it shall enter an order making this finding and the district shall become a district operating under this chapter. (b) If the governing body finds that the conversion of the district would not serve the best interest of the district and would not be a benefit to the land and property included in the district, it shall enter an order against conversion of the district into one operating under this chapter. (c) The findings of the governing body of a district entered under this section are final and not subject to appeal or review. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.041. EFFECT OF CONVERSION. A district that converts into a district operating under this chapter shall: (1) be constituted an irrigation district operating under and governed by this chapter; (2) be a conservation and reclamation district under the provisions of Article XVI, Section 59, of the Texas Constitution; and (3) have and may exercise all the powers, authority, functions, and privileges provided in this chapter in the same manner and to the same extent as if the district had been created under this chapter. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.042. RESERVATION OF CERTAIN POWERS FOR CONVERTED DISTRICTS. (a) Any water improvement district or water control and improvement district, after conversion under Section 58.038 of this code, may continue to exercise all necessary specific powers under any specific conditions provided by the chapter of this code under which the district was operating before conversion, except that no district, after conversion, may engage in the treatment or delivery of treated water for domestic consumption or the construction, maintenance, or operation of sewage facilities. (b) At the time of making the order of conversion, the governing body shall specify in the order the specific provisions of the chapter of the code under which the district had been operating which are to be preserved and made applicable to the operations of the district after conversion into a district operating under this chapter. (c) A reservation of a former power under Subsection (a) of this section may be made only if this chapter does not make specific provision concerning a matter necessary to the effectual operation of the converted district. (d) In all cases in which this chapter does make specific provision, this chapter shall, after conversion, control the operations and procedure of the converted district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER C. ADMINISTRATIVE PROVISIONS § 58.071. BOARD OF DIRECTORS. The governing body of a district is the board of directors, which shall consist of five directors. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.072. QUALIFICATIONS. To be qualified for election as a director, a person must be a resident of the state, be the owner of record of fee simple title to land in the district, be at least 18 years of age, and owe no delinquent taxes or assessments to the district. Section 49.052 does not apply to a district governed by this chapter. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1995, 74th Leg., ch. 715, § 32, eff. Sept. 1, 1995. § 58.0731. ELECTION OF DIRECTORS FROM PRECINCTS. A district that elected one director from each of five precincts before it converted to a district operating under this chapter shall continue to elect its directors in the same manner from precincts. Added by Acts 1979, 66th Leg., p. 70, ch. 44, § 1, eff. April 11, 1979. § 58.084. DISTRICT TAX ASSESSOR AND COLLECTOR. The board may appoint one person to the office of tax assessor and collector, or it may order an election to fill that office. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.089. BONDS OF OFFICERS OF A DISTRICT ACTING AS FISCAL AGENT OR COLLECTING MONEY FOR THE UNITED STATES. (a) If a district is appointed fiscal agent for the United States or if a district is authorized to make collections of money for the United States in connection with a federal reclamation project, each director and officer of the district including the tax assessor and collector shall execute an additional bond in the amount required by the Secretary of the Interior, conditioned on the faithful discharge of his respective office and on the faithful discharge by the district of its duties as fiscal or other agent of the United States under its appointment or authorization. (b) The additional bonds shall be approved, recorded, and filed as provided in this chapter for other official bonds. (c) Suit may be brought on the bonds by the United States or any person injured by the failure of the officers or directors of the district to fully, promptly, and completely perform their respective duties. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER D. POWERS AND DUTIES § 58.121. PURPOSES OF DISTRICT. (a) Irrigation districts operating under this chapter are limited purpose districts established primarily to deliver untreated water for irrigation and to provide for the drainage of lands and such other functions as are incidental to the accomplishment of such limited purposes. An irrigation district shall not engage in the treatment or delivery of treated water for domestic consumption or the construction, maintenance, or operation of sewage facilities or provide any other similar municipal services. An irrigation district may cooperate with the United States under the federal reclamation laws for the purpose of: (1) construction of irrigation and drainage facilities necessary to maintain the irrigability of the land; (2) purchase, extension, operation, or maintenance of constructed facilities; or (3) assumption, as principal or guarantor of indebtedness to the United States on account of district lands. (b) An irrigation district operating under this chapter may contract with municipalities, political subdivisions, water supply corporations, or water users for the delivery of untreated water. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.122. POWERS OF DISTRICT. The district has the functions, powers, authority, rights, and duties which will permit the accomplishment of the purposes for which it was created, including the investigation and, in case a plan for improvements is adopted, the construction, maintenance, and operation of necessary improvements, plants, works, and facilities, and the acquisition of water rights and all other properties, land, tenements, materials, borrow and waste ground, easements, rights-of-way, and everything considered necessary, incident, or helpful to accomplish by any practicable mechanical means any one or more of the objects authorized for the district, subject only to the restrictions imposed by the Constitutions of Texas or the United States. A district also may acquire property deemed necessary for the extension or enlargement of the plant, works, improvements, or service of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.125. CONSTRUCTION OF IMPROVEMENTS. A district may construct all works and improvements necessary: (1) for the irrigation of land in the district; (2) for the drainage of land in the district, including drainage ditches or other facilities for drainage; and (3) for the construction of levees to protect the land in the district from overflow. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.126. PURCHASE OF MACHINERY AND SUPPLIES. The board may purchase machinery, materials, and supplies needed in the construction, operation, maintenance, and repair of district improvements. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.127. ADOPTING RULES. A district may adopt and make known reasonable rules to: (1) prevent waste or the unauthorized use of water; and (2) regulate residence, hunting, fishing, boating, and camping, and all recreational and business privileges on any body or stream of water, or any body of land, or any easement owned or controlled by the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.128. EFFECT OF RULES. After the required publication, rules adopted by the district under Section 58.127 of this code shall be recognized by the courts as if they were penal ordinances of a city. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.129. PUBLICATION OF RULES. (a) The board shall publish once a week for two consecutive weeks a substantive statement of the rules and the penalty for their violation in one or more newspapers with general circulation in the area in which the property of the district is located. (b) The substantive statement shall be as condensed as is possible to intelligently explain the purpose to be accomplished or the act forbidden by the rule. (c) The notice must advise that breach of the rules will subject the violator to a penalty and that the full text of the rules is on file with the principal office of the district where it may be read by any interested person. (d) Any number of rules may be included in one notice. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.130. EFFECTIVE DATE OF RULES. The penalty for violation of a rule is not effective and enforceable until five days after the publication of the notice. Five days after the publication, the published rules shall be in effect and ignorance of it is not a defense for a prosecution for the enforcement of the penalty. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.133. CONSTRUCTING BRIDGES AND CULVERTS ACROSS AND OVER COUNTY AND PUBLIC ROADS. The district shall build necessary bridges and culverts across and over district canals, laterals, and ditches which cross county or public roads. Funds of the district shall be used to construct the bridges and culverts. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.134. CONSTRUCTING CULVERTS AND BRIDGES ACROSS AND UNDER RAILROAD TRACKS, ROADWAYS, AND INTERURBAN OR STREET RAILWAYS. (a) The district, at its own expense, may build necessary bridges and culverts across or under any railroad tracks or roadways of any railroad or any interurban or street railway to enable the district to construct and maintain any canal, lateral, ditch, or other improvement of the district. (b) Before the district builds a bridge or culvert, the board shall deliver written notice to the local agent, superintendent, roadmaster, or owner. The railroad company or its owner shall have 60 days in which to build the bridge at its own expense and according to its own plans. (c) The canal, culvert, ditch, or structure shall be constructed of sufficient size and proper plan to serve the purpose for which it is intended. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.136. POWER TO CONTRACT. The district may enter into a contract for the use by another of its water, facilities, or service, either inside or outside the district, except that a contract may not be made which impairs the ability of the district to serve lawful demands for service within the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.137. INVESTIGATION AND REPORT OF ENGINEER. (a) The district engineer shall make a thorough study and investigation of all plans of the district and make and file in the district office a report on all plans for construction of plants and improvements. (b) The board shall provide and keep a book in the district office, to be known as the "Engineer's Record," in which all reports and recommendations made by the district engineer shall be recorded. The "Engineer's Record" shall be open to public inspection. (c) A contract for more than $20,000 may not be made by the district unless the district has a district engineer who has made a proper study and report on it. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.150. TRANSACTIONS IN DISTRICT NAMES UNDER JOINT OWNERSHIP AND CONSTRUCTION CONTRACT. All bids, bonds, contracts, and other transactions made under a joint ownership and construction contract may be made in the names of the districts which are parties to the contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.153. CONTRACT WITH THE UNITED STATES. (a) The board may enter into a contract or other obligation with the United States for the investigation, construction, extension, operation, and maintenance of any federal reclamation project of benefit to the district and authorized under the National Reclamation Act of 1902, as amended. (b) The board may contract to secure a district water supply from the federal reclamation project and to pay to the United States the agreed cost of it in the form of construction charges, operation and maintenance charges, and water rental charges, as shown by the contract and in accordance with the terms and conditions of the national reclamation law. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.154. CONSTRUCTION CHARGES UNDER A CONTRACT WITH THE UNITED STATES. The construction charges under a contract with the United States may include the cost of drainage and flood-control works necessary to control floods or to maintain the irrigability of district land. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.155. ELECTION TO APPROVE A CONTRACT WITH THE UNITED STATES. (a) The electors of the district shall vote to approve every contract involving the payment of construction charges to the United States. The provisions of this chapter relating to the election to approve the validation of district bonds shall be followed, including the prosecution of an action in court to determine the validity of the contract. (b) The notice of election shall state the maximum amount, exclusive of operation and maintenance charges, water rental charges, interest, and penalties, payable by the district to the United States under the contract. (c) The ballot shall be printed to provide for voting for or against the proposition: "The contract with the United States and levy of taxes to make payments under the contract". This is the only proposition that may appear on the ballot. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.156. CONVEYING PROPERTY TO THE UNITED STATES. A district may convey any property to the United States necessary for the construction, operation, or maintenance of federal reclamation works used or to be used for the benefit of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.157. CONSENT OF UNITED STATES TO ALTER DISTRICT'S BOUNDARIES. Until all money has been paid by the district which is due to the United States under a contract relating to a federal reclamation project, the United States must consent to any change in the boundaries of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.158. TAXES LEVIED BY DISTRICT UNDER CONTRACT WITH THE UNITED STATES. (a) A district that enters into a contract with the United States shall levy annually sufficient taxes to provide payment of all installments required by the contract. (b) The board may pay construction charges when provided by contract on the basis of the average gross annual acre income of the land of the district or designated divisions or subdivisions of the district. The Secretary of the Interior shall determine the annual gross acre income. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.159. ASSESSMENTS FOR CONTRACTS WITH THE UNITED STATES. The board shall levy annually sufficient assessments to collect the money required to pay all of the district's obligations in full when due regardless of any delinquency in payment of assessments by any tract of land. If collections in any year are insufficient to pay the obligations of the district, the levy shall be increased sufficiently the following year to cover the deficit. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.160. DURATION OF ANNUAL LEVIES FOR CONTRACTS WITH THE UNITED STATES. The board shall continue annual levies for payment of construction charges each year against each tract of land in the district even though construction charges apportioned against other tracts of land in the district may be paid sooner or later. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.161. SUPERIORITY OF LIEN TO SECURE CONTRACT WITH THE UNITED STATES. The lien against district land created by a contract with the United States shall be superior to the lien created by any district bonds approved subsequent to the date of the contract with the United States. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.162. DISTRICT'S AUTHORITY TO SOLICIT COOPERATION, DONATIONS, AND CONTRIBUTIONS FROM OTHER AGENCIES. A district organized under the provisions of this chapter may solicit cooperation, donations and contributions from: (1) the United States, the state or nation; (2) any county, municipality, water improvement district, water control and improvement district, drainage district, or any other political subdivision of the state; or (3) any person, copartnership, corporation, or association. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.163. EXPENSE OF PROCURING COOPERATION AND CONTRIBUTIONS FROM OTHER AGENCIES. A district may incur reasonable expense to procure cooperation under Section 58.162 of this code in adding to the area of the district or with contributions to the cost of improvements made by the district. The contributions may be either a percentage of cost or a definite annual sum. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.164. AUTHORITY OF CONTRIBUTOR. (a) Any water improvement district, water control and improvement district, levee improvement district, irrigation district, county, city, town, or other political subdivision of the state may contract to contribute to the cost of the construction of drainage and irrigation water distribution system improvements. The improvements to be constructed may be outside the contributing district, municipality, or other political subdivision of the state, and may be located outside the state or the United States. (b) The works may be constructed by any agency. (c) The contribution shall be proportionate to the benefit which the contributor will derive from the proposed improvements. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.165. ISSUANCE OF BONDS BY CONTRIBUTOR. (a) The contract may provide for the issuance of bonds by the contributor and for direct payment from the proceeds of the bonds to contractors on the estimates of the engineer for the contributor. (b) Before issuing bonds, a contributing political subdivision shall submit the contract for contribution to its electors for approval and for authority to issue the bonds, fix a lien to secure the bonds, and levy, assess, and collect taxes to retire the bonds. The procedure by a contributing political subdivision of the state shall conform to the applicable law under which the political subdivision was organized and authorized to create bonded indebtedness. (c) The disposition of the proceeds of the bond shall conform to the approved contract of contribution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.166. ANNUAL TAX BY CONTRIBUTOR. (a) The contract for contribution may provide that instead of issuing bonds the contributor may levy, assess, and collect an annual tax in a specific sum. The levy or assessment is a lien on the property subject to the contributor's taxing power. (b) The contributor shall collect the tax at its own expense and pay it annually to the district to which the contribution is to be made. The district shall hold the annual payment as a trust fund and annually apply it to the bonds issued by it to provide funds for the construction of the improvements to which the contribution is made. (c) The contributor shall submit the contract of contribution to its electors for approval and for authority to levy and assess a sufficient tax to meet the annual payments fixed in the contract. The election for the approval of the contract and the authorized taxes for the fulfillment of the contract shall conform to appropriate law under which the contributing political subdivision was organized and authorized to create bonded indebtedness. (d) Payment of the annual sums of contribution shall conform to the contract of contribution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.167. CONTRIBUTIONS FROM UNAPPROPRIATED OR AVAILABLE FUNDS OF CONTRIBUTOR. (a) If the proposed contributor has an unappropriated fund or a fund which is not required for actual use even though otherwise appropriated, the fund may be withdrawn from the project which does not need it and may be applied to pay contributions to the cost of the improvements considered to be a benefit to the contributor but to be constructed by another agency or jointly by the contributor and another agency. (b) The board of the contributing political subdivision may contract for contributions and contribute from an unappropriated or available fund without submitting the contract and contributions to a vote of the electors of the contributor. However, the contributions shall not be made if they impair the ability of the contributor to meet any outstanding obligation or to adequately and economically discharge the contributor's duty to its electorate or constituency. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.168. LIABILITY ON CONTRACTS OF ACQUIRED IRRIGATION SYSTEM. If a district acquires an established irrigation system which has contracted to supply water to others and the holders of the contracts or the lands entitled to service of water are not within the district, the contracts and duties shall be performed by the district in the same manner and to the same extent that any other purchaser of the system would be bound. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.170. COVENANTS AND AGREEMENTS INCLUDED IN LEASE. (a) The lease shall expressly state that the sums payable under the terms of the lease and the lease itself shall not constitute an indebtedness or pledge of the general credit of the district within the meaning of any constitutional or statutory limitation of indebtedness. The lease shall contain a statement that payments due under it are not payable from any funds raised or to be raised by taxation. (b) The lease may contain covenants and agreements which are not inconsistent with the provisions of this code which authorize the lease for: (1) the management and operation of the leased properties; (2) the imposition and collection of charges for water; (3) the disposition of the proceeds of charges; (4) the insurance, protection, and maintenance of the leased properties; (5) the creation of other obligations payable from the revenues derived from the operation of the leased properties; (6) the keeping of books and records by the district; and (7) other pertinent provisions which the board considers desirable to assure the payment of amounts due under the lease. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.171. REVENUE FOR PAYMENT OF LEASE RENTAL. (a) All money due the lessor under the lease shall be payable solely from the revenue derived by the district from the sale of water supplied through the leased system. (b) The board shall set and collect charges for the water supplied through the leased properties to produce sufficient revenue at all times to allow for delinquencies and to pay promptly all rental payments becoming due under the terms of the lease. The board may agree to deposit this money in a separate fund as a first charge on the gross revenue received each year from sales of water, and which shall not be used for any other purpose. (c) The board may agree in the lease to pay all expenses of operating and maintaining the leased properties from the fund provided by the board each year for the maintenance and operation expenses of the district so that the gross revenue from sale of water will be available exclusively for payment of rentals until the amount required for rentals each year is paid into the separate rental fund. (d) If the board includes this agreement in the lease, the board shall provide for the payment of sums into the maintenance fund from sources other than the remaining portions of the gross revenue from the sale of water not required to pay rentals which are sufficient each year to pay all expenses of operating the district and maintaining and operating its properties and facilities, including the leased properties. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.172. RECEIVER FOR LEASED IRRIGATION SYSTEM. (a) If the district defaults in the payments due under a lease, the lessor may petition a court of competent jurisdiction to appoint a receiver for the leased properties. (b) The receiver shall operate the properties and collect and distribute the revenue according to the terms of the lease and the direction of the court. (c) The receiver has the same rights and powers as the board in its operation of the leased properties. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.173. JOINT LEASE BY TWO OR MORE DISTRICTS. The boards of two or more districts may adopt resolutions to enter into a joint lease under the provisions of Section 58.169 of this code. The joint lease shall specify clearly the respective rights and liabilities of the districts and shall be subject to all the provisions of Sections 58.169 and 58.172 of this code. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.174. AUTHORITY TO ACQUIRE IRRIGATION SYSTEM SUBJECT TO MORTGAGE. A district may acquire by gift, grant, or purchase any part of an irrigation system serving the district which is subject to a mortgage or encumbrance. The mortgage or encumbrances shall not be assumed by the district and shall not be an indebtedness of the district but shall constitute solely a charge on the encumbered property and the revenue from it. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.175. REVENUE FOR PAYMENT OF MORTGAGE. (a) The board may determine conclusively by resolution whether the mortgage or encumbrance represents all or part of the cost of the acquired property and constitutes a purchase money lien on the property. (b) The board may contract to use and pledge its revenue derived solely from the sale of water and services supplied through the acquired properties for the payment of a purchase money lien. (c) The board also may use revenue from taxation or from the issuance and sale of bonds to pay all or part of the amount due under the encumbrance if a majority of the electors of the district voting at an election on this proposition approve its use. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.176. ELECTION TO APPROVE REVENUE FOR PAYMENT OF MORTGAGE. (a) If tax and bond revenue is pledged to pay amount due under the encumbrance, the district must hold an election and receive the approval of the electors. (b) An election to approve the use of tax and bond revenue shall be held in the same manner and with the same voters' qualifications as provided for elections on the issuance of the bonds of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.177. JOINT ACQUISITION OF MORTGAGED SYSTEM BY TWO OR MORE DISTRICTS. (a) Two or more districts jointly may acquire by gift, grant, or purchase any part of an irrigation system serving the districts subject to a mortgage or encumbrances in the same manner that a single district may acquire the system. (b) In the proceedings authorizing the acquisition, the boards of the respective districts shall define clearly the respective rights, interest, and liability of the districts in the acquired property and in the mortgage or encumbrance. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.178. AUTHORITY TO LEASE FACILITIES TO WATER CUSTOMERS. (a) A district may lease to any person, firm, or corporation which is a bona fide water customer of the district any of its facilities and may also lease any of the district's land which is appropriate to the utilization of the leased facilities, including, but not limited to land acquired by eminent domain. (b) The board and the lessee shall agree on the form of the lease and its terms, conditions, provisions, and stipulations: however, the duration of the lease shall not be longer than the duration of the water contract between the district and the lessee under the primary term of the water contract and any renewal or extension of it. (c) After a lease to a water customer is authorized by the board, the lease shall be executed by the president or vice-president of the board and attested by the secretary. The lease is valid and effective without any other requirement or prerequisite by the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.180. AMENDMENTS TO WATER RIGHTS. The board may apply to the commission to amend its water rights as provided by Section 11.122 of this code and the rules of the commission. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June 10, 1981. § 58.181. SUIT TO PROTECT WATER RIGHTS. The board may institute and maintain any suit or suits to protect the water supply or other rights of the district, to prevent any unlawful interference with the water supply or other rights of the district, or to prevent a diversion of its water supply by others. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.182. TRANSFER OF WATER RIGHT. If there is land in a district which has a water right from a source of supply acquired by the district but the land is difficult or impracticable to irrigate from that source of supply, the district may allow transfer of the water right to other land which is adjacent to the district. The adjacent land may be admitted to the district with the same right of water service as the land from which the water was transferred. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.183. SELLING WATERPOWER PRIVILEGES. (a) The district may enter into a contract to sell waterpower privileges if power can be generated from water flowing from the district's reservoirs within its canal system. (b) The sale of waterpower privileges may not interfere with the district's obligation to furnish an adequate supply of water for the purpose for which the district was organized and for municipal purposes in districts that furnish water for municipal purposes. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.184. SELLING SURPLUS WATER. The district may sell any surplus district water for use in irrigation or for domestic or commercial uses to any person who owns or uses land in the vicinity of the district or to other districts which include land in the same vicinity. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.185. PUMPING WATER TO ANOTHER DISTRICT. If the board considers it advisable, it may contract to pump for or supply another district any water in which the other district has a right. The board shall provide the terms of the contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.186. OBTAINING TOPOGRAPHIC MAPS AND DATA. The Texas Water Development Board shall furnish to a district topographic maps and data concerning projects undertaken by the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June 10, 1981; Acts 1987, 70th Leg., ch. 977, § 34, eff. June 19, 1987. § 58.190. SALE OF PROPERTY NOT ACQUIRED TO CARRY OUT THE PLANS OF THE DISTRICT. The board may sell property bid in by it at any sale under foreclosure of its tax lien or of its lien for charges or assessments, or any property acquired by it other than for the purpose of carrying out the plans of the district, without formally determining that the property is not required to carry out the plans of the district, without giving notice of the intent of the district to sell the property, and without applying the proceeds of the sale as provided in Sections 58.188 and 58.189 of this code. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER E. ELECTION PROVISIONS § 58.221. LANDOWNER. In this subchapter, a reference to "landowner" refers to a single landowner who is the owner of record of fee simple title to a parcel of land located within the boundaries of a district, regardless of whether the title to the parcel of land is held by: (1) an individual landowner; (2) two or more individual landowners; or (3) a corporation, partnership, or other business entity. Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001. § 58.222. ELIGIBILITY TO VOTE. Notwithstanding the Election Code and any other law, a landowner or the landowner's registered representative under this subchapter is entitled to one vote in an election conducted by a district only if the landowner: (1) owns at least one acre of irrigable land located within the district's boundaries that is subject to an assessment for maintenance and operating expenses under Sections 58.305(a) and (b); (2) is entitled to receive and use irrigation water delivered by the district through the district's irrigation facilities; and (3) satisfies all other requirements for voting prescribed by this subchapter. Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001. § 58.223. ELIGIBILITY REQUIREMENTS. An individual landowner, or the landowner's registered representative, is eligible to vote only if the individual: (1) is 18 years of age or older; (2) is a United States citizen; (3) has not been determined mentally incompetent by a final judgment of a court; (4) has not been finally convicted of a felony or, if so convicted, has: (A) fully discharged the individual's sentence, including any term of incarceration, parole, or supervision, or completed a period of probation ordered by any court; or (B) been pardoned or otherwise released from the resulting disability to vote; and (5) is included on the list of qualified voters prepared under Section 58.224(d). Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001. § 58.224. REGISTRATION REQUIRED. (a) A landowner who elects to designate a representative to vote on behalf of the landowner must register the representative to vote on a form prescribed by the district. (b) The form must be received by the district on or before the 20th day before the date of the election. (c) The registration is valid for a period prescribed by the district. (d) The district shall prepare a list of qualified voters as shown by the district's records as of the 60th day before the date of a district election. On or before the 40th day before the date of an election, the district shall: (1) file the list with the county clerk of each county within which the district's boundaries are located; (2) post the list in the district's office; and (3) post the list at each county courthouse in each county within which the district's boundaries are located. (e) Only an individual landowner or a registered representative of a landowner whose name appears on the list of qualified voters is eligible to vote in a district election. Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001. § 58.225. VOTING BY REPRESENTATIVE. (a) A landowner may authorize an individual to vote in a district election as the landowner's representative as provided by this subchapter. (b) If ownership of the land is vested in more than one individual or in a corporation, partnership, or other business entity, the vote must be made by a registered representative. Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001. § 58.226. LIABILITY FOR DISTRICT TAXES AND DEBTS. (a) A person who on January 1 of each year is not eligible under this subchapter to vote in an election held by a district is not liable for any tax imposed by the district under Subchapters L or M during the year in which the person is not eligible to vote. (b) A person continues to be liable for the payment of: (1) taxes imposed before the date on which a person becomes ineligible to vote under this subchapter; (2) the pro rata share of any district indebtedness existing on the date on which a person becomes ineligible to vote under this subchapter; and (3) taxes imposed during any year in which the person is eligible to vote under this subchapter. Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.SUBCHAPTER G. WATER CHARGES AND ASSESSMENTS § 58.301. STATEMENT ESTIMATING WATER REQUIREMENTS AND PAYMENT OF CHARGE. (a) Each person who desires to receive water at any time during the year shall furnish the secretary of the board a written statement of the acreage he intends to irrigate and the different crops he intends to plant with the acreage of each crop. (b) At the time the acreage estimate is furnished to the secretary, each person applying for water shall pay the portion of the water charge or assessment set by the board. (c) If a person does not furnish the statement of estimated acreage or does not pay the part of the water charge or assessment set by the board before the date for fixing the assessment, the district is not obligated to furnish water to that person during that year. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.302. CONTRACTS WITH PERSON USING WATER. (a) The board may require each person who desires to use water during the year to enter into a contract with the district which states the acreage to be watered, the crops to be planted, the amount to be paid for the water, and the terms of payment. (b) If a person irrigates more land than his contract specifies, he shall pay for the additional service. (c) The directors also may require a person using water to execute a negotiable note or notes for all or part of the amount owed under the contract. (d) The contract is not a waiver of the lien given to the district under Section 58.309 of this code against the crops of a person using water for the service furnished to him. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.303. AUTHORITY TO DETERMINE RULES AND REGULATIONS. The board may adopt, alter, and rescind rules, and standing and temporary orders which do not conflict with the provisions of this subchapter and which govern: (1) methods, terms, and conditions of water service; (2) applications for water; (3) assessments for maintenance and operation; (4) payment and the enforcement of payment of the assessments; (5) furnishing water to persons who did not apply for it before the date of assessment; and (6) furnishing water to persons who wish to take water for irrigation in excess of their original applications or for use on land not covered by their original applications. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.304. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING EXPENSES. The board, on or as soon as practicable after a date fixed by standing order of the board, shall estimate the expenses of maintaining and operating the irrigation system for the next 12 months. The board may change the 12-month period for which it estimates the expenses of maintaining and operating the irrigation system by estimating such expenses for a shorter period so as to adjust to a new fixed date and thereafter estimating the expenses for 12-month periods following the adjusted fixed date. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff. Sept. 1, 1997. § 58.305. DISTRIBUTION OF ASSESSMENT. (a) Not less than one-third nor more than two-thirds of the estimated maintenance and operating expenses shall be paid by assessment against all land in the district to which the district can furnish water through its irrigation system or through an extension of its irrigation system. (b) The assessments shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated. The board shall determine from year to year the proportionate amount of the expenses which will be borne by water users. (c) The remainder of the estimated expenses shall be paid by assessments against persons in the district who use or who make application to use water. The board shall prorate the remainder as equitably as possible among the applicants for water and may consider the acreage each applicant will plant, the crop he will grow, and the amount of water per acre he will use. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.306. NOTICE OF ASSESSMENTS. (a) Public notice of all assessments shall be given by posting printed notices of the assessment in at least three public places in the district. (b) Notice shall be mailed to each landowner at the address which the landowner shall furnish to the board. (c) The notice shall be posted in a public place and mailed to each landowner five days before the assessment is due, and notice of special assessments shall be given within 10 days after the assessment is levied. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.307. PAYMENT OF ASSESSMENTS. (a) All assessments shall be paid in installments at the times fixed by the board. (b) If a crop for which water was furnished by the district is harvested before the due date of any installment payment, the entire unpaid assessment becomes due at once and shall be paid within 10 days after the crop is harvested and before the crop is removed from the county or counties in which it was grown. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.308. COLLECTION OF ASSESSMENTS BY TAX ASSESSOR AND COLLECTOR. (a) Under the direction of the board, the assessor and collector, or other person designated by the board, shall collect all assessments for maintenance and operating expenses. (b) The assessor and collector shall execute a bond in an amount determined by the board, conditioned on the faithful performance of his duties and accounting for all money collected. (c) The assessor and collector shall keep an account of all money collected and shall deposit the money as collected in the district depository. He shall file with the secretary of the board a statement of all money collected once each week. (d) The assessor and collector shall use a duplicate receipt book, give a receipt for each collection made, and retain in the book a copy of each receipt, which shall be kept as a record of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.309. LIEN AGAINST CROPS. The district shall have a first lien, superior to all other liens, against all crops grown on each tract of land in the district to secure the payment of the assessment, interest, and collection or attorney's fees. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.310. LIST OF DELINQUENT ASSESSMENTS. Assessments not paid when due shall become delinquent on the first day of the month following the date payment is due, and the board shall post in a public place in the district a list of all persons who are delinquent in paying their assessments and shall keep posted a correct list of all persons who are delinquent in paying assessments. If a person who owes an assessment has executed a note and contract as provided in Section 58.302 of this code, he shall not be placed on the delinquent list until after the maturity of the note and contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff. Sept. 1, 1997. § 58.311. WATER SERVICE DISCONTINUED. If a landowner fails or refuses to pay a water assessment when due, his water supply shall be cut off, and no water may be furnished to the land until all back assessments are fully paid. The discontinuance of water service is binding on all persons who own or acquire an interest in land for which assessments are due. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.312. SUITS FOR DELINQUENT ASSESSMENTS. Suits for delinquent water assessments may be brought either in the county in which the district is located or in the county in which the defendant resides. All landowners are personally liable for assessments provided in this subchapter. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.313. INTEREST AND COLLECTION FEES. (a) All assessments shall bear interest from the date payment is due at the rate of 15 percent a year. Assessments not paid by the first day of the month following the date payment is due shall become delinquent, and a penalty of up to 15 percent of the amount of the past-due assessment shall be added to the amount due. (b) If suit is filed to foreclose a lien on crops or if a delinquent assessment is collected by an attorney before or after suit, an additional amount of 15 percent on the unpaid assessment, penalty, and interest shall be added as collection or attorney's fees. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff. Sept. 1, 1997. § 58.314. RIGHTS OF THE UNITED STATES. (a) If the board enters into a contract with the United States, the remedies in this subchapter available to the district also shall apply to enforce payment of charges due to the United States. The federal reclamation laws shall also apply. (b) The directors shall distribute and apportion all water acquired by the district under a contract with the United States in accordance with acts of Congress, rules and regulations of the Secretary of the Interior, and provisions of the contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.315. SURPLUS ASSESSMENTS. If assessments made under this subchapter are more than sufficient to pay the necessary expenses of the district, the balance shall be carried over to the next year. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.316. INSUFFICIENT ASSESSMENTS. If the assessments made under this subchapter are not sufficient to pay the necessary expenses of the district, the unpaid balance shall be assessed pro rata, in accordance with the assessments made for the current year. The additional assessments shall be paid under the same conditions and penalties within 30 days after the date of assessment. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.318. CHARGES FOR MAINTENANCE EXPENSES. (a) If maintenance charges are based on the quantity of water used, a fixed minimum charge may be made on all land, water connections, or other service entitled to receive and use water. An additional charge may be made for the use of more water than that covered by the minimum charge. (b) The board may install proper measuring devices or require that they be installed. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.319. CHARGE TO CITIES AND TOWNS. If a district supplies untreated water, the charge for the use of the water and the time and manner of payment shall be determined by the board or fixed by the contract made with the board. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.320. LOANS FOR MAINTENANCE AND OPERATING EXPENSES. The board may borrow money to pay maintenance and operating expenses at an interest rate of not more than 10 percent a year and may pledge as security any of its notes or contracts with water users or accounts against them. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.321. WATER SERVICE: REFUSED. The board may refuse water service to any person who refuses to pay the charges and assessments for water service or who fails or refuses to pay any taxes levied against his property after six months from the date the taxes become delinquent. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER H. GENERAL FISCAL PROVISIONS § 58.351. CONSTRUCTION FUND. (a) The proceeds from the sale of bonds shall be deposited in the construction fund. (b) Money deposited in the construction fund shall be used to pay expenses, debts, and obligations necessarily incurred in the creation, establishment, and maintenance of the district and to pay the purchase price of property and construction contracts, including purchases for which the bonds were issued. (c) If the bonds were issued in accordance with a contract with the United States, debts and obligations may be paid from the construction fund under the terms of or incident to the contract. (d) After the payment of obligations for which the bonds were issued, any remaining money in the construction fund may be transferred to the maintenance fund. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.352. MAINTENANCE FUND. (a) The district shall have a maintenance fund which shall include money collected by assessment or other method for the maintenance, repair, and operation of the properties and plant of the district or for temporary annual rental due to the United States. (b) The maintenance fund shall be used to pay all expenses of maintenance, repair, and operation of the district except the expenses of assessing and collecting taxes for the interest and sinking fund shall be paid from the interest and sinking fund. (c) The district may pay from the maintenance fund other expenses for which the payment is not provided in this chapter. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.353. AMORTIZATION AND EMERGENCY FUND. (a) The board shall have a competent engineer make an inspection and valuation of the physical property of the district which is subject to decay, obsolescence, injury, or damage by sudden, accidental, or unusual causes, and based on the inspection and valuation, the engineer shall determine as nearly as he can a sufficient amount to be set aside annually to pay for replacement of each item of physical property at the end of its economic life or for the restoration or replacement of any item of physical property if it is lost, injured, or damaged. (b) The board shall set aside a portion of the maintenance fund as it is collected equal to the amount determined under Subsection (a) of this section and shall place this money in the amortization and emergency fund. No part of this fund may be spent except to replace amortized property or to replace or restore lost, injured, or damaged property. (c) Any amount in the amortization and emergency fund which is not spent for the purposes for which the fund was created may be invested in bonds or interest-bearing securities of the United States. (d) The board is not required to create an amortization and emergency fund, but if the board does create the fund, it shall be kept up and maintained. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER I. BORROWING MONEY § 58.391. AUTHORITY TO BORROW MONEY. The board may declare that funds are not available to meet lawfully authorized obligations of the district, thereby creating an existing emergency, and may borrow money at a rate of not more than 10 percent a year on notes of the district to pay obligations. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.392. SECURITY FOR LOAN. To secure the loan, the board may pledge up to 85 percent of any levied tax of the district which has not been collected by the district or may pledge as collateral any district bonds which have been authorized but not sold. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.393. MATURITY DATE OF LOAN. (a) If taxes are pledged to pay for the loan, the loan shall mature not later than the following April 1. (b) If preliminary or construction bonds are pledged to pay the loan, the loan shall mature not later than six months from the date it is made. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.394. LOAN SECURED BY BONDS. The amount of the loan may not be more than 25 percent of the district's unsold bonds and the par value of the bonds may not be more than 10 percent of the amount of the loan. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.395. EXPENDITURE OF LOAN PROCEEDS. No money obtained from a loan under Section 58.391 of this code may be spent for any purpose other than the purposes for which the pledged tax was levied or the pledged bonds were authorized. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.396. LOANS ACCOMPLISHED BY SALE OF DISTRICT BONDS. If the loan is secured by the sale of district bonds, the district may enter into an obligation to be conditioned conformably with the usages of investment banking to repurchase the bonds within the five-year period immediately following the date of the loan. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.397. PLEDGE OF COMMERCIAL INCOME. (a) The term "commercial income" means income other than revenue derived from taxation. (b) If required to do so, a district may pledge its existing and expected commercial income to secure a loan to the extent the pledge will not obviously substantively impair the ability of the district to pay obligations which are held by others. (c) If a district expects commercial income in the future but does not have the demonstrated income in an amount adequate to discharge the loan when it matures, the district may pledge the expected commercial income as provided in Subsection (b) of this section and in addition, or as an alternative, may pledge with a power of sale its unsold bonds in a par amount which shall not be more than the amount of the loan plus 10 percent. The district is not required to impound the bonds. The rate of interest on the loan may not be more than six percent. (d) After commercial income is pledged, it may not be used for any purpose except to pay the debt which it secures, and it shall be applied to the reduction of the secured debt as rapidly as practicable. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.398. EVIDENCE OF DEBT. To evidence loans which are not secured by the sale of bonds, the district may execute and deliver to the lender certificates of indebtedness, notes, or obligations and may pledge its full faith and credit for their payment to the same extent that it may be pledged by district bonds. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.399. RETIRING BONDS. If bonds are impounded or pledged to secure a loan made to a district, as the loan is repaid a proportionate amount of the bonds may be withdrawn, cancelled, and retired. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977.SUBCHAPTER J. ISSUANCE OF BONDS § 58.431. AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING UNDER ARTICLE III, SECTION 52, OF THE TEXAS CONSTITUTION. A district which is operating under Article III, Section 52, of the Texas Constitution, may issue bonds and lend its credit in an amount of not more than one-fourth of the assessed valuation of the real property in the district. However, the total indebtedness of any city or town may never be more than the limits imposed by the Texas Constitution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.432. AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING UNDER ARTICLE XVI, SECTION 59, OF THE TEXAS CONSTITUTION. A district operating under Article XVI, Section 59, of the Texas Constitution, may incur debt evidenced by the issuance of bonds which is necessary to provide improvements and maintenance of improvements to achieve the purposes for which the district was created. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.433. AMOUNT OF DEBT LIMITED BY CONSTITUTION. No district may issue bonds or create indebtedness in an amount which is more than that authorized by the Texas Constitution. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.434. ISSUANCE OF PRELIMINARY BONDS. A district may issue preliminary bonds to create a fund to pay: (1) costs of organization; (2) costs of making surveys and investigations; (3) attorney's fees; (4) costs of engineering work; (5) costs of the issuance of bonds; and (6) other costs and expenses incident to organization of the district and its operation in investigating and determining plans for its plant and improvements and in issuing and selling bonds to provide for permanent improvements. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.435. ELECTION ON PRELIMINARY BONDS. (a) The proposition for the issuance of preliminary bonds shall be submitted to the electors of the district. (b) The election may be held at the same time as the election to confirm the creation of the district or at a later time. (c) The board shall make an estimate of the expenses to be paid with the proceeds of the preliminary bonds and shall include this estimate in the notice of election. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.436. CONDITIONS OF PRELIMINARY BONDS. (a) After preliminary bonds have been authorized at an election, the board may order the issuance of the bonds in an amount which is not more than the amount stated in the notice of election. (b) The bonds may be paid serially or on amortization at any time not more than 10 years from their date. (c) Although the bonds will be known and designated in the records as preliminary bonds, it is not necessary to make this designation on the bonds. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.437. TAX TO PAY PRELIMINARY BONDS. At the time preliminary bonds are issued, a tax shall be levied to pay principal and interest as the bonds mature and to pay the cost of assessing and collecting the taxes. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.438. ISSUANCE OF BONDS. (a) After a district is created and has adopted plans for construction of a plant and improvements, it may issue bonds to pay for constructing the plant and improvements and to pay costs and charges incident to the construction including the cost of necessary property and the retirement of preliminary bonds. (b) The maximum amount of bonds which may be issued may not be more than the amount of the engineer's estimate plus the additional amounts added by the board in the election order. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.439. PURPOSES FOR ISSUANCE OF BONDS. The district may issue bonds to include: (1) the cost of organization of the district; (2) incidental expenses; (3) the cost of investigation and making plans; (4) the engineer's work and other incidental expenses; (5) the cost of retirement of preliminary bonds; (6) the cost of issuing and selling bonds; (7) the estimated discount on the bonds; (8) the cost of operation of a district for the period of construction of the plant and improvements stated in the engineer's report; (9) an amount to pay interest on the bonds during the period stated in the engineer's report, which shall not be more than three years from the time the bonds are sold; and (10) any additional cost or expense made necessary by any change or modification made in the proposed work by the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.440. ENGINEER'S REPORT. (a) Before an election is held to authorize the issuance of bonds, an engineer's report, which includes the plans and improvements to be constructed together with maps, plats, profiles, and data showing and explaining the engineer's report, shall be filed in the office of the district and shall be available for public inspection. (b) The engineer's report shall contain a detailed estimate of the cost of improvements, including the cost of any property to be purchased, and an estimate of the time required to complete the improvements to the degree to which they may provide service. (c) The board shall consider the engineer's report and may make changes in the report and note them in the minutes. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.441. ELECTION ORDER. (a) After the engineer's report is filed and approved, the board may order an election in the district to authorize the issuance of bonds. (b) In the order, the board shall estimate the total amount of money needed to cover the items listed in Section 58.439 of this code. (c) The election order shall state: (1) the proposed maximum interest rate on the bonds; (2) the maximum maturity date of the bonds; (3) the time and places for holding the election; and (4) the names of the election officers. (d) The election order shall be entered in the minutes of the board. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.443. BALLOTS. (a) The proposition to be voted on shall be the issuance of the total amount of bonds covered by the engineer's estimate plus additional estimates made by the board. (b) The ballots shall be printed to provide for voting for or against: "The issuance of bonds and the levy of taxes to pay for the bonds." (c) If a contract is proposed with the United States under the federal reclamation laws, the ballots shall be printed to provide for voting for or against: "The contract with the United States and the levy of a tax to pay the contract." Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.444. VOTE AT ELECTION. (a) Bonds of a district operating under the provisions of Article III, Section 52, of the Texas Constitution, may be issued only with the approval of two-thirds of the electors of the district participating in the election. (b) In a district organized under the provisions of Article XVI, Section 59, of the Texas Constitution, bonds may be issued or indebtedness created only with the approval of a majority of the electors of the district participating in the election. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.445. ORDER TO ISSUE BONDS OR EXECUTE CONTRACT. After the vote is canvassed and the results are declared to be favorable to the proposition, the board shall make and enter an order directing the issuance of the bonds or the execution of a contract with the United States. The bonds or contract shall be in a sufficient amount to pay for the improvements together with all necessary incidental expenses, but the amount may not be more than the amount specified in the election order and notice of election. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.446. RECORD OF BOND PROCEEDINGS SUBMITTED TO ATTORNEY GENERAL. (a) After a district issues bonds other than preliminary bonds, but before they are sold, the record showing all the proceedings in the creation of the district and the issuance of the bonds shall be filed in the office of the attorney general. (b) The attorney general shall examine the record and give his opinion on it. (c) The record may be presented to the attorney general before the bonds are printed, and the bonds may be executed after the record is completed. (d) After the record is approved, the bonds shall be issued or duly executed. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.447. APPROVAL AND REGISTRATION OF BONDS. (a) After the bonds are issued and executed, they shall be submitted to the attorney general for approval. (b) If the attorney general finds that the bonds are issued according to law and are valid, binding obligations of the district, he shall officially certify the bonds and execute a certificate, which shall be filed with the comptroller and recorded in the book kept for that purpose. (c) The bonds may not be registered with the comptroller until 20 days after the day of the election authorizing the issuance of the bonds. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.448. VALIDITY OF BONDS. After the bonds are approved by the attorney general and registered by the comptroller, they shall be held to be valid, binding obligations of the district in any suit testing their validity. Any person interested in the bonds may file a suit before the bonds are registered to test the validity, but may not bring suit to test validity after the bonds are registered. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.449. CONDITIONS OF BONDS. (a) The bonds may be issued to mature at the end of a term of years or to mature serially at any date which is not later than the maximum maturity date stated in the election order. (b) The bonds may be issued at any rate of interest which is not more than the rate of interest set in the election order. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.450. FORM OF BONDS. (a) The bonds shall be issued in the name of the district and shall be signed by the president and attested by the secretary, with the seal of the district attached. (b) The bonds shall be issued in denominations of $100 or multiples of $100 and shall be payable annually or semiannually. (c) The board shall determine and include in the bonds the time, place, manner, and condition of payment of principal and interest on the bonds, but none of the bonds may be made payable more than 40 years from their date. (d) The lien for payments due to the United States under a contract that was not accompanied by a deposit of bonds with the United States shall be a preferred lien to that of any issue of bonds of any series or any issue of bonds subsequent to the date of the contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.453. VALIDATION SUIT. (a) A district may file a suit to determine the validity of the creation of the district and the bonds. (b) If requested by the Secretary of the Interior, the district shall file a suit to validate a contract made with the United States. (c) If a validation suit is filed, the bonds do not have to be approved by the attorney general. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.454. EFFECT OF PRIOR REGISTRATION. If bonds are approved by the attorney general and registered by the comptroller before a validation suit is filed, the filing of the suit cancels the prior registration. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.455. PROCEDURE IN VALIDATION SUIT. (a) A validation suit shall be brought by the district in the district court of any county in which all or part of the district is located or in a district court in Travis County. (b) The suit shall be in the nature of a proceeding in rem. (c) Any person who is interested in the suit may intervene and file an answer. (d) The issue shall be tried and determined by the court and judgment shall be entered on the findings. (e) Repealed by Acts 1981, 67th Leg., p. 2646, ch. 707, § 4(53), eff. Aug. 31, 1981. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, § 4(53), eff. Aug. 31, 1981. § 58.456. NOTICE OF VALIDATION SUIT. (a) To obtain jurisdiction of all parties to the validation suit, a general notice shall be published. (b) The notice shall be published once a week for at least two consecutive weeks before the term of the court at which the notice is to be returned. The notice shall be published in a newspaper with general circulation in the county or counties in which the district is located, but if no newspaper is published inside the district, the notice shall be published in a newspaper in the nearest county in which a paper is published. (c) Notice also shall be served on the attorney general in the manner provided in civil suits. (d) The attorney general may waive notice if he is furnished a full transcript of the proceedings held in connection with the creation of the district and the issuance of the bonds or held in connection with the authorization of a contract with the United States. A copy of the contract with the United States also must be furnished. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.457. DUTIES OF ATTORNEY GENERAL IN VALIDATION SUIT. (a) The attorney general shall examine all the proceedings and shall require any further evidence and make any further examination which he considers advisable. (b) The attorney general then shall file an answer to the suit, submitting the issue of whether the proceedings are valid and the bonds are legal and binding obligations of the district, or whether the contract with the United States is legal and binding on the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.458. JUDGMENT IN VALIDATION SUIT. (a) After the trial of the validation suit, if the judgment of the court is adverse to the district on any issue, the district may make an exception and point out the error, and the error may be corrected by the judge in the manner directed by the court. (b) The judgment shall be rendered showing that the corrections have been made and that the bonds or the contract with the United States are binding obligations of the district. (c) After the judgment is entered, it is res judicata in all cases which may arise in connection with: (1) the collection of the bonds or their interests; (2) any taxes levied to pay charges or any money required to pay a contract with the United States; and (3) all matters relating to the organization and validity of the district or the validity of the bonds or contract. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.459. EFFECT OF VALIDATION SUIT. (a) After a final judgment is rendered in the validation suit, the bonds or the contract with the United States shall be incontestable. (b) No suit may be brought in any court of this state to contest or enjoin the validity of the creation of the district, any bonds which are issued, any contract with the United States, or the authorization of a contract with the United States, except in the name of the State of Texas by the attorney general on his own motion or on the motion of any party affected on good cause shown. (c) The attorney general may not file or prosecute such a suit unless it is based on allegations of fraud disclosed or found after the final judgment in the validation suit was rendered. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.460. CERTIFIED COPY OF DECREE. (a) After the judgment of the district court is entered, the clerk of the court shall make a certified copy of the decree which shall be filed with the comptroller. The comptroller shall record the decree in the book kept for that purpose. (b) The certified copy of the decree or a certified copy of the comptroller's record of the decree shall be received in evidence in any suit which may affect the validity of the organization of the district or the validity of the bonds or the contract and shall be conclusive evidence of validity. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.461. REGISTRATION OF BONDS AND DECREE. On the presentation of the bonds together with a certified copy of the decree of the court, the comptroller shall register the bonds in a book kept for that purpose. The comptroller shall attach to each bond a certificate stating that the court's decree has been filed and recorded in his office and shall sign the certificate and attach his official seal. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.462. SALE OF BONDS. (a) After the bonds are issued by the district, the board shall sell the bonds on the best terms and for the best price possible. (b) The board shall pay the proceeds from the sale of the bonds to the district depository. (c) The district may exchange bonds for property acquired by purchase or to pay the contract price of work done for the use and benefit of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.463. TAX LEVY. (a) At the time the bonds are voted, the board shall levy a tax on all property inside the district subject to district taxation in a sufficient amount to redeem and discharge the bonds at maturity. (b) The board annually shall levy or have assessed and collected taxes on all property inside the district in a sufficient amount to pay installments and interest as they become due. (c) If a contract is made with the United States, the board annually shall levy taxes on property inside the district in a sufficient amount to pay installments and interest as they become due. (d) The board may issue the bonds in serial form or payable in installments, and the tax levy shall be sufficient if it provides an amount sufficient to pay the interest on the bonds, the proportionate amount of the principal of the next maturing bond, and the expenses of assessing and collecting the taxes for that year. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.464. ADJUSTMENT OF TAX LEVY. (a) The board may from time to time increase or diminish the tax to adjust it for the taxable values of the property subject to taxation by the district and the amount required to be collected. (b) The board shall raise an amount sufficient to pay the annual interest of and principal on all outstanding bonds. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, § 4(r), eff. Jan. 1, 1982. § 58.466. INTEREST AND SINKING FUND. (a) The district shall have an interest and sinking fund which shall include all taxes collected under this chapter. (b) Money in the interest and sinking fund may be used only: (1) to pay principal and interest on the bonds; (2) to defray the expenses of assessing and collecting the taxes; and (3) to pay principal and interest due under a contract with the United States if bonds have not been deposited with the United States. (c) Money in the fund shall be paid out of the fund on warrants by order of the board as provided in this chapter. (d) The depository shall receive and cancel each interest coupon and bond as it is paid and shall deliver it to the board to be recorded, cancelled, and destroyed. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.467. INVESTMENT OF SINKING FUND. (a) The board may invest any portion of the sinking fund of the district in bonds of the United States, the state, any county or city in the state, any irrigation or water improvement district, school district, or other tax bonds issued under the laws of the state. (b) The funds may be invested if the bonds to be paid with them do not mature within three years from the time the investment is made and if it is necessary to preserve the best interest of the district. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.468. REFUNDING BONDS. (a) The district may refund any bonds issued by it by issuing new bonds. (b) Refunding bonds may be issued only if the old bonds are taken in exchange at their face value or less or new bonds can be sold at a premium and the old bonds retired without loss to the district. (c) The comptroller may not register the refunding bonds until the old bonds for which the refunding bonds are being issued are presented to him for cancellation or until a valid contract providing for the purchase or exchange of the old bonds is executed and a copy filed in his office. (d) The comptroller shall keep the refunding bonds until the old bonds are presented to him for exchange or payment, and if the old bonds are presented for payment, the district shall pay them before the refunding bonds are registered. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.469. LIMITATION OF AUTHORITY TO INCUR DEBT AND ISSUE BONDS. (a) For the benefit of purchasers or holders of bonds to be issued or sold, the board of a district operating under the provisions of Article XVI, Section 59, of the Texas Constitution, may limit the authority of the district to incur debt or issue bonds. (b) The board shall limit the authority by adopting a resolution which states that during a period of not more than 15 years the district will not issue bonds in an amount of more than 25 percent of the assessed value of taxable real property in the district according to the last assessment for district purposes or in an amount of more than a fixed sum or for certain named purposes. (c) The board shall publish notice of the adoption of the resolution once a week for two consecutive weeks in a newspaper with general circulation in the district. The notice shall state that the resolution will take effect unless a petition against the proposed limitation signed by 20 percent of the electors of the district is presented within 20 days after the first publication of the notice. (d) If a petition is filed against the limitation, the resolution will not take effect until it is approved at an election held in the district. (e) The ballots for the election shall be printed to provide for voting for or against: "The limitation during the term of years of the maximum debt of the district to _______________." (The blank space shall be filled with the purpose of the election). (f) If the limitation is approved at an election or if no petition is filed against the resolution, the district may not issue bonds under any statute or constitutional provision in excess of the limitation during the designated term of years except to complete and make repairs to improvements whose cost will be within the debt limitation. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.470. ISSUING BONDS IN EXCESS OF LIMITATION. (a) A district may issue bonds in excess of a limitation made under Section 58.469 of this code only after the commission has approved the plans and specifications with the estimate of costs. (b) If the plans, specifications, and estimate are approved, notice of the intention to issue the bonds shall be published once a week for three consecutive weeks in a newspaper with general circulation in the district. The notice shall include a statement of the purpose for issuing the bonds, the amount of the proposed bond issue, and the time the hearing is to be held, which may not be less than 30 days after the notice is first published. (c) The board shall hold the hearing and any taxpayer, bondholder, or other interested person may appear and be heard. (d) If the board approves the issuance of the additional bonds in the amount and for the purpose stated in the notice, the question of issuing the bonds shall be submitted to the electors of the district at an election. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.471. MODIFICATIONS OR IMPROVEMENTS. (a) After bonds are issued or a contract is entered into with the United States, the board may give notice of an election to be held to authorize the issuance of additional bonds or a further contract with the United States. (b) Additional bonds may be issued or a supplemental contract made if the board considers it necessary to: (1) make modifications in the district or its improvements; (2) construct further or additional improvements and issue additional bonds on the report of the engineer; (3) make a supplemental contract with the United States; and (4) make, on its own motion, additional improvements or purchase additional property to accomplish the purposes of the district and to serve the best interest of the district. (c) The board shall enter its findings in the minutes. (d) The election shall be held and the returns made in the manner provided in this chapter for the original election. (e) If the result of the election favors the issuance of the bonds or the supplemental contract with the United States, the board may order the bonds issued or the contract made with the United States in the manner provided in this chapter. (f) If a supplemental contract is made with the United States and bonds are not to be deposited with the United States, it is not necessary to issue bonds. If the district is required to raise money in addition to the amount of the contract, the bonds shall be issued only in the additional amount needed. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.472. ISSUANCE OF ADDITIONAL BONDS OR CREATION OF ADDITIONAL INDEBTEDNESS UNDER CERTAIN CONDITIONS. (a) A district may issue additional bonds or create additional indebtedness: (1) if works, improvements, and facilities constructed under a plan provided in Section 58.440 or 58.452 of this code are inadequate to accomplish the beneficial results which the district's location and conditions demand; (2) if it is considered necessary to make repairs, replacements, or additions to the district's improvements which cost more than $25,000; or (3) if additional money is needed to complete the improvements as planned. (b) The district shall provide the additional money for the particular purpose in accordance with the provisions of this chapter regulating the creation of bond obligations subject to every limitation with respect to the original proceedings and the substantial protection of the substantive rights of holders of any of the district's outstanding obligations. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.473. INTERIM BONDS. After bonds, other than preliminary bonds or notes, are voted by a district, the board may declare an existing emergency with relation to money being unavailable to pay for engineering work, purchase of land, rights-of-way, construction sites, construction work, and legal and other necessary expenses and may issue interim bonds on the faith and credit of the district in the manner provided in Sections 58.474-58.479 of this code to pay these expenses. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.474. LIMITATIONS ON INTERIM BONDS. (a) Interim bonds shall mature not later than 10 years from the date they are issued, and shall be redeemable at any time before they mature, as provided in this subchapter. (b) The principal amount of the interim bonds may not be more than 25 percent of the principal amount of the district's bonds which have been voted but not sold. (c) Before the issuance of the interim bonds, the board, by resolution, may limit the issue to any amount less than 25 percent, and after the amount is determined and fixed by the resolution, no additional interim bonds may be issued and sold until all outstanding interim bonds are paid. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.475. ISSUANCE OF BONDS AND LEVY OF TAX. (a) After bonds other than preliminary bonds are voted, the board may authorize the issuance of the bonds in whole or in part as they are needed by the district. (b) The board shall levy and annually assess and collect sufficient taxes to pay principal and interest on the bonds. (c) The bonds may be approved by the attorney general and registered by the comptroller before the filing of the report of the Texas Water Rights Commission under Section 58.451 of this code. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.476. DEPOSIT OF BONDS TO SECURE INTERIM BONDS. (a) As the interim bonds are issued and sold, the board, by order, shall deposit bonds of the district which have been validated by a court or approved by the attorney general and registered by the comptroller as provided in Section 58.447 of this code in the district depository. (b) The bonds deposited shall be credited to the interest and sinking fund account created to pay the interim bonds. (c) The principal amount of the bonds deposited shall total at least 110 percent of the principal sum of the series of interim bonds which the bonds are deposited to secure. (d) The interest rate on the interim bonds may not be more than the interest rate on the bonds deposited to secure them. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.477. PROCEDURE FOR ISSUANCE AND SALE OF INTERIM BONDS. (a) Interim bonds shall be issued in the name of the district, signed by the president, and attested by the secretary, with the district seal attached to each bond. (b) The interim bonds may be issued in the denominations determined by the board and shall be approved by the attorney general and registered by the comptroller in the same manner as provided in Section 58.447 of this code. (c) The interim bonds may be sold in the same manner and on the same terms provided by law for the sale of other bonds of the district. (d) If interim bonds are sold at less than par value and accrued interest, the improvement bonds issued by the district must be sold at an increase over the price authorized by law in an amount sufficient to equal the discount allowed on the interim bonds. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.478. PAYMENT OF INTERIM BONDS. (a) The board shall appropriate the tax levied to pay the bonds deposited to the credit of the interest and sinking fund to pay the interim bonds or as much of that tax as necessary to secure the loan evidenced by the interim bonds. (b) The proceeds of the tax shall be devoted exclusively to the payment of the principal and interest on the interim bonds. (c) None of the provisions of this subchapter relating to interim bonds shall be construed as prohibiting the sale of bonds deposited to the credit of the interest and sinking fund to pay interim bonds or of any other bonds of the district, but if any of these bonds are sold, the district depository shall apply the proceeds to the payment of principal and accrued interest on the interim bonds and the remainder to the purposes for which the bonds were authorized. (d) If none of the bonds are sold at the time an installment on the principal and interest of interim bonds matures, the depository shall cancel the deposited bonds and attached interest coupons in an amount equal to the principal and interest of the interim bonds paid off and discharged. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.479. REDEMPTION OF INTERIM BONDS. (a) At the option of the board, interim bonds may be redeemed at any time or times before maturity on payment by the district of the principal and accrued interest to the date fixed for redemption by the board. (b) When interim bonds are called for redemption before maturity, the secretary shall give written notice of the redemption to the bank or banking house named as the place of payment in the bonds or to its successor or assign. (c) In the notice, the secretary shall designate the bond or bonds called for redemption and payment and shall state the number or numbers of the bonds. (d) The notice shall include the redemption date which shall not be more than 60 days after the date notice of call for payment is made. (e) If any of the bonds which are called for redemption are not presented, they shall cease to bear interest from and after the date fixed for redemption. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.480. ALTERNATE METHODS FOR PAYING BONDS. (a) As used in this section and in Sections 58.481-58.484 of this code, "net revenue" means income or increment which may come from ownership and operation of the improvements which are encumbered less the proportion of the district's revenue income reasonably required to provide for administration, efficient operation, and adequate maintenance of the district's services and facilities which are encumbered. Net revenue does not include money derived from taxation. (b) A district which expects net revenue from operations may secure its bonds in any one of the following: (1) as provided in Section 58.463 of this code; (2) by entering into a contract to pledge the net revenue of the district and to mortgage and encumber part or all of the property and facilities, franchise, revenue, and income from operations, and everything acquired or to be acquired by the district; or (3) as provided in both Subdivisions (1) and (2) of this subsection. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.481. TAXES TO SECURE CERTAIN BONDS. (a) If bonds are secured as provided in Section 58.480(b)(3) of this code, at the time that net revenue together with money derived from taxes accumulates a surplus in the sinking fund equal to the amount required in the succeeding year to liquidate the interest and principal on the district's bonds maturing in that year, the district's annual tax levies may be lowered to produce not less than 25 percent of the bond maturities for the succeeding year. (b) If three successive years demonstrate that this net revenue is adequate to protect the district's bonds as they mature, the district's tax may be discontinued until further experience demonstrates the necessity to continue the tax to avoid default in the payment of the district's bonds as they mature. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.482. ELECTION. (a) If the district proposes to issue bonds which will be secured under either Section 58.480(b)(2) or 58.480(b)(3) of this code, the proposition shall be presented at an election held under Section 58.443 of this code. (b) The ballots for the election shall be printed to provide for voting for or against one of the following propositions: (1) "The issuance of bonds and the pledge of net revenue for the payment of the bonds."; (2) "The issuance of bonds, the pledge of net revenue, and the creation of a lien on physical property to secure payment of the bonds."; or (3) "The issuance of bonds, the pledge of net revenue, and the levy of adequate taxes to pay the bonds." Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.483. HEARING AND ELECTION ON CERTAIN BONDS. (a) A district which plans to issue bonds payable from and secured by a pledge of net revenue and a lien on the physical property, either or both, without the levy of taxes, is not required to hold a hearing to exclude land or adopt a plan of taxation. (b) The proposition for issuance of bonds may be submitted at the election held to confirm the creation of the district or at an election called by the board. Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug. 29, 1977. § 58.484. HEARING BEFORE ISSUING CERTAIN BONDS. If a district issues its original bonds under Section 58.480(b)(2) of t