89R14439 SCF-F     By: Guillen H.B. No. 2692     Substitute the following for H.B. No. 2692:     By:  Martinez C.S.H.B. No. 2692       A BILL TO BE ENTITLED   AN ACT   relating to the San Antonio River Authority.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle G, Title 6, Special District Local Laws   Code, is amended by adding Chapter 8513 to read as follows:   CHAPTER 8513. SAN ANTONIO RIVER AUTHORITY   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 8513.0101.  DEFINITIONS. In this chapter:                (1)  "Authority" means the San Antonio River Authority.                (2)  "Board" means the authority's board of directors.                (3)  "Commission" means the Texas Commission on   Environmental Quality.                (4)  "Director" means a board member.                (5)  "Flood plain" means the area of the channel of a   river or stream and those portions of land abutting and adjacent to   the channel that are reasonably required to carry floodwaters.                (6)  "San Antonio River Basin" means all of the area   except for Bandera, Real, and Kerr Counties that has topographic   characteristics causing surface waters to flow into the San Antonio   River and its tributaries.                (7)  "State" means the State of Texas or any of its   agencies, departments, boards, political subdivisions, or other   entities.          Sec. 8513.0102.  NATURE OF AUTHORITY.  (a)  The authority is   a conservation and reclamation district under Section 59, Article   XVI, Texas Constitution.          (b)  The authority's creation is essential to accomplish the   purposes of Section 59, Article XVI, Texas Constitution, including:                (1)  construction, maintenance, and operation of   navigable canals and waterways; and                (2)  control of the waters of all rivers, streams, and   tributaries of rivers and streams inside the authority.          Sec. 8513.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.   All land included in the authority will benefit by the exercise of   power conferred by this chapter.          Sec. 8513.0104.  REVIEW SCHEDULE UNDER SUNSET ACT. A review   of the authority under Section 325.025, Government Code, shall be   conducted as if the authority were a state agency scheduled to be   abolished September 1, 2035, and every 12th year after that year.          Sec. 8513.0105.  TERRITORY. Unless modified under   Subchapter J, Chapter 49, Water Code, or other law, the authority's   territory includes all of that part of this state in the boundaries   of Bexar, Wilson, Karnes, and Goliad Counties.          Sec. 8513.0106.  EFFECT OF CHAPTER ON CERTAIN PERSONS OR   ENTITIES. (a)  If any power granted to the authority by this   chapter overlaps or conflicts with any power of the   Guadalupe-Blanco River Authority, the power granted to the   Guadalupe-Blanco River Authority supersedes the power granted to   the authority by this chapter, unless the Guadalupe-Blanco River   Authority consents to the authority's exercise of the power.          (b)  No provision of this chapter divests any person of any   vested:                (1)  riparian right;                (2)  right derived under an existing permit for the   appropriation and use of public waters issued by the commission; or                (3)  right derived under any certified filing with the   commission.          Sec. 8513.0107.  LIBERAL CONSTRUCTION OF CHAPTER.  This   chapter shall be liberally construed to effect its purposes.          Sec. 8513.0108.  CORRECTION OF INVALID PROCEDURES.  If the   board determines that any procedure under this chapter violates the   Texas Constitution or the United States Constitution, the board by   ordinance may provide an alternative procedure that conforms with   the constitution.   SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS          Sec. 8513.0201.  DIRECTORS; TERMS; QUALIFICATIONS.  (a)  The   board consists of 12 directors elected as follows:                (1)  two directors elected at large from Goliad County;                (2)  two directors elected at large from Karnes County;                (3)  two directors elected at large from Wilson County;                (4)  two directors elected at large from Bexar County;   and                (5)  one director elected from each single-member   district representing the four county commissioner precincts in   Bexar County.          (b)  Directors serve staggered four-year terms. An elected   director's term begins January 1 following the date of the   director's election.          (c)  A director must:                (1)  be at least 21 years of age;                (2)  reside within the authority;                (3)  reside in the county from which the director is   elected or appointed; and                (4)  possess the qualifications of a juror.          (d)  A director elected from a single-member district must   reside in the district from which the director is elected.          Sec. 8513.0202.  DIRECTOR ELECTIONS. (a)  The authority   shall hold an election to elect the appropriate number of directors   on the uniform election date in November of each odd-numbered year.          (b)  The placing of the names of the candidates on the   ballots shall be determined by lot.  A candidate or a designated   representative of the candidate may be present at the drawing.          (c)  In the event of a tie for any director position, the   winner shall be determined by a majority of the board.          (d)  Directors serving from single-member districts at the   time new single-member districts are adopted shall serve for the   remainder of the terms to which they were elected regardless of the   redistricting.          Sec. 8513.02025.  CERTAIN DIRECTOR TERMS. (a)  This section   applies only to the term of a director who is appointed or elected   on or after May 24, 2023.          (b)  The two at-large director positions for Bexar County   shall be scheduled for election on the November uniform election   date in 2023. The person who receives the highest number of votes   shall be elected to the first at-large Bexar County director   position and shall serve a four-year term beginning January 1,   2024, and ending December 31, 2027. An election shall be scheduled   for that position on the November uniform election date in 2027 and   every four years thereafter. The person who receives the second   highest number of votes shall be elected to the second at-large   Bexar County director position and shall serve a two-year term   beginning January 1, 2024, and ending December 31, 2025. An   election shall be scheduled for that position on the November   uniform election date in 2025 and every four years thereafter for a   four-year term beginning on January 1 of the year following each   election.          (c)  The following director positions shall be scheduled for   election on the November uniform election date in 2025 and every   four years thereafter, and the directors elected to each position   shall serve four-year terms beginning January 1 of the year   following each election:                (1)  the single-member district director elected from   Bexar County commissioners court precinct 1;                (2)  the single-member district director elected from   Bexar County commissioners court precinct 2;                (3)  the at-large director position for Karnes County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2019;                (4)  the at-large director position for Goliad County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2019; and                (5)  the at-large director position for Wilson County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2019.          (d)  The following director positions shall be scheduled for   election on the November uniform election date in 2027 and every   four years thereafter, and the directors elected to those director   positions shall serve four-year terms beginning January 1 of the   year following each election:                (1)  the single-member district director elected from   Bexar County commissioners court precinct 3;                (2)  the single-member district director elected from   Bexar County commissioners court precinct 4;                (3)  the at-large director position for Karnes County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2021;                (4)  the at-large director position for Goliad County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2021; and                (5)  the at-large director position for Wilson County   for which an election was held, or scheduled to be held but canceled   because of an unopposed candidate, in November 2021.          (e)  The members of the board of directors serving in the   director positions described by Subsections (b), (c), and (d) on   May 23, 2023, shall continue to serve until their successors have   been elected and qualified.          (f)  This section expires September 1, 2029.          Sec. 8513.0203.  SUSPENSION AND REMOVAL. (a)  A director or   officer may be suspended or removed from office for:                (1)  incompetency;                (2)  official misconduct;                (3)  official gross negligence;                (4)  habitual drunkenness; or                (5)  nonattendance at six consecutive regular board   meetings.          (b)  A director or officer may not be suspended or removed   from office unless:                (1)  charges against the director or officer are filed   in writing; and                (2)  the director or officer is given an opportunity   for a fair hearing before the board.          (c)  An affirmative vote of not fewer than eight of the   directors is required to suspend or remove a director or officer.          Sec. 8513.0204.  VACANCY.  The governor, with the advice and   consent of the senate, shall fill a vacancy on the board for the   unexpired term.          Sec. 8513.0205.  BYLAWS. The board shall adopt bylaws for   the management of the authority's affairs.          Sec. 8513.0206.  ORDINANCES. (a) The board may, by a   majority and to the extent necessary to exercise the authority's   powers and rights, adopt an ordinance:                (1)  not adequately provided by Chapter 49 or 51, Water   Code;                (2)  germane and appropriate to the accomplishment and   purposes of this chapter; and                (3)  consistent with a specific power conferred on a   county, municipality, water improvement district, water control   and improvement district, drainage district, navigation district,   canal corporation, channel and dock corporation, deep water   corporation, railway corporation, terminal railway corporation,   telegraph and telephone corporation, or other similar entity.          (b)  The board is not required to provide notice before   adopting an ordinance, except as otherwise required for a regular   or special board meeting.          (c)  The board:                (1)  shall file an adopted ordinance in the authority's   official records; and                (2)  may, if the board considers it necessary and   proper:                      (A)  file certified copies of the ordinance in the   office of the county clerk in each county in the authority where the   ordinance applies; or                      (B)  publish the ordinance at least once per week   for two weeks in a newspaper of general circulation in each county   where the ordinance applies.          (d)  An adopted ordinance takes effect after the filing   requirements of Subsection (c) are met.          (e)  After an ordinance takes effect, a county clerk with   whom a certified copy of the ordinance is filed under Subsection   (c)(2)(A) shall record the certified copy. The county clerk shall   charge the same fee for recording the certified copy as for   recording a deed of conveyance.          (f)  An ordinance granting a power or mode of procedure   adopted under this section does not limit the accomplishment of the   purposes of this chapter.          Sec. 8513.0207.  BOND REQUIREMENT FOR DIRECTORS AND   OFFICERS. (a)  Not later than the 15th day after the date of an   election or appointment of a director or officer, the director or   officer shall file a good and sufficient bond with the board   secretary.          (b)  The bond must be:                (1)  in the amount of $5,000;                (2)  payable to the authority;                (3)  conditioned on the faithful performance of duties   as a director or officer; and                (4)  subject to approval by the board secretary.          Sec. 8513.0208.  FILING OF OATH.  Before assuming the duties   of office, each director shall file with the board secretary a copy   of the constitutional oath of office taken by the director.          Sec. 8513.0209.  COMPENSATION OF DIRECTORS. (a)  A director   is entitled to receive reimbursement for reasonable expenses and an   allowance as provided under Section 49.060, Water Code.          (b)  A director is not entitled to receive a per diem   allowance for more than 60 days in a fiscal year.          (c)  In all areas of conflict with this section, Section   49.060, Water Code, takes precedence.          Sec. 8513.0210.  CERTAIN INTERESTS PROHIBITED. (a) A   director may not engage in a transaction with the authority for gain   or profit.          (b)  An officer of the authority may not have any interest,   direct or indirect, in any contract awarded by the authority.          Sec. 8513.0211.  OFFICERS. (a) The board shall appoint by   majority vote a chair, a vice chair, a secretary, a treasurer, and   other officers or assistant officers the board considers necessary.          (b)  The chair, the vice chair, the secretary, and the   treasurer must each be a director. Assistant officers are not   required to be directors.          (c)  An officer shall serve a term of two years.          (d)  A non-director assistant officer:                (1)  holds office at the pleasure of the board; and                (2)  may be granted limited powers in the authority   bylaws.          (e)  The authority may appoint officers, prescribe their   duties, and set their compensation.          Sec. 8513.0212.  DIRECTOR TRAINING PROGRAM. (a)  A person   who is elected or appointed to and qualifies for office as a   director may not vote, deliberate, or be counted as a director in   attendance at a board meeting until the person completes a training   program that complies with this section.          (b)  The training program must provide the person with   information regarding:                (1)  the law governing authority operations;                (2)  the authority's programs, functions, rules, and   budget;                (3)  the scope of and limitations on the board's   rulemaking authority;                (4)  the results of the authority's most recent formal   audit;                (5)  the requirements of:                      (A)  laws relating to open meetings, public   information, administrative procedure, and disclosure of conflicts   of interest; and                      (B)  other laws applicable to members of the   governing body of a river authority in performing their duties; and                (6)  any applicable ethics policies adopted by the   authority or the Texas Ethics Commission.          (c)  A person elected or appointed to the board is entitled   to reimbursement for the travel expenses incurred in attending the   training program regardless of whether the attendance at the   program occurs before or after the person qualifies for office.          (d)  The manager of the authority shall create a training   manual that includes the information required by Subsection (b).     The manager shall distribute a copy of the training manual annually   to each director.  Each director shall sign and submit to the   manager a statement acknowledging that the director has received   and reviewed the training manual.          Sec. 8513.0213.  MEETINGS. (a) Regular and special board   meetings shall be held as provided by general law and the bylaws.          (b)  Notice of regular and special board meetings shall be   given as required by general law and the bylaws.          (c)  All meetings of the board shall be open to the public.          Sec. 8513.0214.  POLICIES TO SEPARATE POLICY-MAKING AND   STAFF FUNCTIONS. The board shall develop and implement policies   that clearly separate the board's policy-making responsibilities   and the management responsibilities of the manager and authority   staff.          Sec. 8513.0215.  AGENTS, EMPLOYEES, AND PROFESSIONAL   CONSULTANTS. (a)  The authority may appoint agents, employees, and   professional consultants, prescribe their duties, and set their   compensation.          (b)  An agent, employee, or professional consultant may not   have any interest, direct or indirect, in any contract awarded by   the authority.          Sec. 8513.0216.  MANAGER. (a)  The board may employ a   manager to be the authority's chief executive officer.          (b)  The board shall set the compensation to be paid to the   manager.          (c)  The manager shall employ and supervise, subject to   policies promulgated by the board, all employees, agents,   accountants, attorneys, engineers, and others rendering   professional services necessary to accomplish the purposes of this   chapter.          (d)  The manager may execute on behalf of the authority,   without specific board authorization, a contract for which   competitive bidding is not required. The manager may execute any   other contract with specific board authorization.          Sec. 8513.0217.  AUTHORITY'S DOMICILE AND OFFICE. The   general office and place of domicile of the authority shall be in   the City of San Antonio, Bexar County.          Sec. 8513.0218.  COMPLAINTS.  (a)  The authority shall   maintain a system to act promptly and efficiently on complaints   filed with the authority.          (b)  The authority shall maintain information about:                (1)  the parties to the complaint;                (2)  the subject matter of the complaint;                (3)  a summary of the results of the review or   investigation of the complaint; and                (4)  the complaint's disposition.          (c)  The authority shall periodically notify the parties to   the complaint of the complaint's status until final disposition   unless the notice would jeopardize an investigation.          (d)  The authority shall make information available   describing its procedures for complaint investigation and   resolution.          Sec. 8513.0219.  PUBLIC TESTIMONY AT BOARD MEETINGS. The   board shall develop and implement policies that provide the public   with a reasonable opportunity to appear before the board and to   speak on any issue under the jurisdiction of the authority.          Sec. 8513.0220.  CONTRACT WITH BEXAR COUNTY. (a)  This   section applies only to a contract between the authority and the   Commissioners Court of Bexar County entered into before May 26,   1961, to finance the construction of certain flood control and soil   conservation works of improvement in Bexar County.          (b)  Except as provided by Subsection (c), the authority may   not spend any income or revenue derived from the contract for a   purpose other than a purpose specifically provided for by the   contract.          (c)  The board may allocate a reasonable amount of income or   revenue derived from the contract to pay for:                (1)  authority overhead costs;                (2)  operational costs; and                (3)  fees of directors who reside in Bexar County.   SUBCHAPTER C. GENERAL POWERS AND DUTIES          Sec. 8513.0301.  GENERAL POWERS. (a)  The authority shall:                (1)  administer this chapter; and                (2)  use the authority's facilities and powers to   accomplish the purposes of this chapter.          (b)  The authority may:                (1)  exercise the powers, rights, privileges, and   functions in this chapter;                (2)  exercise all powers, rights, privileges, and   functions necessary or convenient for accomplishing the purposes of   this chapter; and                (3)  perform any other act necessary or convenient to   the exercise of the powers, rights, privileges, and functions   conferred by this chapter or other law.          (c)  The authority has the powers and rights and is subject   to the regulations for government and procedure contained in   Chapters 49 and 51, Water Code.          (d)  The authority may spend any amount reasonably necessary   or expedient for seeking cooperation from the federal government or   any other person in accomplishing the purposes of this chapter.          Sec. 8513.0302.  TITLE AND RIGHT OF CONTROL; TRUST.  (a)  The   authority is vested with such title and right of control to the   extent the state has, or may have, title and right of control of:                (1)  the natural bed and banks of the entirety of the   San Antonio River;                (2)  a tributary of the San Antonio River inside the   authority; and                (3)  the natural beds and banks of any navigable stream   or tributary inside the authority.          (b)  The authority's title and right of control shall be in   trust for the accomplishment of the purposes of this chapter.          (c)  The authority may use or dispose of land or rights,   including any proceeds, income, revenue, or trading values received   from the use or disposition, that may be reasonably required for or   aid the accomplishment of the purposes of this chapter.          Sec. 8513.0303.  POWERS RELATING TO CONSERVATION AND   BENEFICIAL USE OF WATER.  (a)  The authority has the powers of this   state under Section 59, Article XVI, Texas Constitution, to:                (1)  effectuate:                      (A)  the construction, maintenance, and operation   of navigable canals or waterways;                      (B)  flood control;                      (C)  the conservation and use of ground, storm,   flood, and unappropriated flow waters in the authority for all   beneficial purposes;                      (D)  irrigation;                      (E)  soil conservation;                      (F)  sewage treatment;                      (G)  pollution prevention; and                      (H)  forestation and reforestation;                (2)  encourage and develop parks and recreational   facilities;                (3)  preserve fish; and                (4)  do all things that are required to accomplish the   purposes of this section.          (b)  The powers described by Subsection (a) are subject only   to:                (1)  the legislature's policy declarations regarding   water use;                (2)  the commission's continuing supervision and   control;                (3)  the provisions of Section 11.024, Water Code,   prescribing the priorities of water uses; and                (4)  the water rights acquired by municipalities and   other users.          (c)  The authority shall store and conserve to the greatest   beneficial use the storm, flood, and unappropriated flow waters of   any river or stream or tributary of a river or stream within the   authority to prevent the escape of water without maximum beneficial   use inside or outside the authority's boundaries.          Sec. 8513.0304.  POWERS REGARDING CANALS, WATERWAYS, AND   RELATED FACILITIES.  The authority may:                (1)  promote, construct, maintain and operate, make   practicable, or aid and encourage the construction, maintenance,   and operation of navigable canals or waterways and all navigational   systems or facilities auxiliary to navigable canals or waterways   using the natural bed and banks of the San Antonio River, where   practicable, and then traversing a route the authority may find to   be more feasible and practicable to connect the San Antonio River   with any new navigable canals to be constructed in the lower reaches   of the San Antonio River or to connect the San Antonio River with   the Gulf Intracoastal Waterway, the San Antonio Bay, or the Gulf of   Mexico;                (2)  construct a system of artificial waterways and   canals, together with all locks and other works, structures, and   artificial facilities as may be necessary and convenient for the   construction, maintenance, and operation of:                      (A)  navigable canals or waterways; and                      (B)  all navigational systems and facilities   auxiliary to navigable canals or waterways; and                (3)  in the case of construction of navigable canals or   waterways and all auxiliary navigational systems or facilities by   the federal government or otherwise:                      (A)  construct, maintain, and operate lateral   connecting canals and turning basins to serve local needs; and                      (B)  provide, construct, acquire, take over,   maintain, operate, develop, lease, regulate, or by franchise   control wharves, docks, warehouses, grain elevators, bunkering   facilities, belt or terminal railroads, floating plants,   lighterage, towing facilities, and all other facilities incident to   or in aid of the efficient operation and development of canals or   waterways and all navigational systems or auxiliary facilities and   ports, whether on land or water.          Sec. 8513.0305.  FEDERALLY CONSTRUCTED OR MAINTAINED   CANALS, WATERWAYS, AND FACILITIES. If the construction or   maintenance and operation of navigable canals or waterways and all   navigational systems or facilities auxiliary to navigable canals or   waterways on the San Antonio River is taken over by the federal   government or an agency of the federal government, the authority   may:                (1)  enter into contracts that may be required by the   federal government, including assignments and transfers of   property, property rights, easements, and privileges; and                (2)  take any other action required by the federal   government or an agency of the federal government.          Sec. 8513.0306.  POWER TO CONTROL, DEVELOP, STORE, AND USE   WATER FOR NAVIGATIONAL USE.  (a)  The authority may control,   develop, store, and use the natural flow and floodwaters of the San   Antonio River and its tributaries for the purpose of operating and   maintaining:                (1)  navigable canals or waterways; and                (2)  navigational systems or facilities auxiliary to   navigable canals or waterways.          (b)  The navigational use of water authorized by Subsection   (a) is subordinate and incidental to consumptive use of water.          Sec. 8513.0307.  POWERS RELATING TO PARKS, RECREATIONAL   FACILITIES, AND PRESERVATION OF FISH AND WILDLIFE.  (a)  The   authority may acquire:                (1)  additional land adjacent to a permanent   improvement constructed inside the authority for the purpose of   developing parks or recreational facilities; and                (2)  necessary rights-of-way to construct, operate,   and maintain roads necessary for ingress and egress to an area   described by Subdivision (1) or to a fish or wildlife preserve or   reserve.          (b)  The authority may provide recreational facilities and   services and may enter into a contract or agreement with any person   for the operation or maintenance of a park or recreational   facility.          (c)  The preservation of fish shall be in accordance with any   rules prescribed by the Parks and Wildlife Department.          Sec. 8513.0308.  POWERS RELATING TO FLOOD CONTROL AND FLOOD   PLAIN MANAGEMENT. (a)  The authority shall prevent and aid in the   prevention of damage to persons and property by the overflow of any   rivers, streams, or tributaries of those rivers and streams within   the authority.          (b)  The authority may study, designate, and regulate flood   plains within the authority.          Sec. 8513.0309.  ACQUISITION OF WATER OR WATER RIGHTS.  (a)     The authority may acquire water appropriation permits or certified   filings within or outside the authority directly from the   commission or from permit owners.          (b)  The authority may purchase water, water supply   facilities, or conservation storage capacity from any person.          Sec. 8513.0310.  GENERAL WATER SUPPLY POWERS.  (a)  The   authority, inside or outside its boundaries, may:                (1)  construct, acquire, equip, acquire storage rights   at, operate, or maintain a dam or reservoir;                (2)  construct, operate, maintain, or otherwise   provide water supply lines, water purification, and water pumping   systems and facilities;                (3)  provide water supply for municipalities,   including selling water and standby service to any person;                (4)  provide water for irrigation of lands and the   development of commercial and industrial enterprises; and                (5)  acquire storage capacity in any dam constructed or   to be constructed by or with the assistance of this state or the   United States from any person, this state, or the United States.          (b)  The authority may bring water into the authority.          (c)  It is the intent of this chapter that the authority is   primarily concerned with the conservation, control, storage,   distribution, and sale of water in bulk quantities in the public   interest and only incidentally with the retail sale of water   insofar as it does not compete with municipal water distributors   and then only when necessary or convenient as a service to the   public.          Sec. 8513.0311.  CONTRACTS TO SUPPLY WATER AND OPERATE   FACILITIES.  (a)  The authority may contract with a user of water   inside or outside the authority for services for which the   authority may charge, including standby service and delivery of   water.          (b)  The authority may contract with any person in the manner   provided by Section 552.020, Local Government Code, for:                (1)  constructing:                      (A)  reservoirs;                      (B)  dams;                      (C)  water supply lines; and                      (D)  water purification and pumping facilities;   and                (2)  furnishing water supply service.          (c)  A contract under Subsection (b) may provide for the   operation, maintenance, and ownership of property subject to the   contract.          Sec. 8513.0312.  POWERS RELATING TO SOIL CONSERVATION. (a)   The authority may act as a local sponsoring agent for or otherwise   aid and supplement upstream soil and water conservation and flood   prevention projects authorized by a state or federal agency in   conjunction with a soil and water conservation district.          (b)  The authority may make arrangements satisfactory to the   United States Secretary of Agriculture to defray the cost of   maintaining or operating a project under Subsection (a). An   arrangement made under this section must be in accordance with   regulations presented by the secretary of agriculture.          (c)  Any portion of the total construction costs of a project   described by Subsection (a) allocable to flood control or soil   conservation shall be paid for or financed by money originating in   the county in which the project is situated. The money may be of any   kind, except from a tax imposed under Subchapter F.          Sec. 8513.0313.  WASTE MANAGEMENT. (a) As a necessary aid   to the conservation, control, preservation, purification, and   distribution of surface water and groundwater within the authority,   the authority may, within the San Antonio River Basin:                (1)  construct, own, operate, maintain, or otherwise   provide sewage gathering, treatment, and disposal services,   including solid waste disposal services;                (2)  charge for services described by Subdivision (1);   and                (3)  make contracts with counties, municipalities, and   others regarding services described by Subdivision (1) or charges   described by Subdivision (2).          (b)  The authority may not exercise the powers described by   Subsection (a) in Kerr, Real, or Bandera County unless consented to   by a majority vote of the commissioners court of that county.          Sec. 8513.0314.  POLLUTION PREVENTION. (a) The authority   may study, correct, and control pollution, including natural,   artificial, organic, inorganic, and thermal pollution, of the   groundwater and surface water within the San Antonio River Basin.          (b)  The authority may not adopt or enforce an ordinance   regarding pollution in any county outside the authority's   boundaries.          Sec. 8513.0315.  FORESTATION AND REFORESTATION. The   authority may forest, reforest, or aid in foresting or reforesting   of all areas within the authority.          Sec. 8513.0316.  GENERAL AUTHORITY TO MAKE CONTRACTS AND   EXECUTE INSTRUMENTS. The authority may enter into a contract or   execute an instrument necessary or convenient to exercising a   power, right, privilege, or function conferred on the authority by   this chapter.          Sec. 8513.0317.  AWARD OF CERTAIN WATER SUPPLY CONTRACTS.   (a) This section applies to:                (1)  a wholesale contract for:                      (A)  the sale, purchase, procurement,   distribution, or supply of water or conservation storage capacity;   or                      (B)  construction of a navigable canal or   waterway; or                (2)  a contract authorized under Section 561.003, Local   Government Code.          (b)  Before entering into a contract under this section, the   manager shall publish notice describing the general nature of the   contract in a newspaper of general circulation in each county   within the authority where the contract is to have effect.          (c)  The board may consider and act on a contract at any   regular board meeting following the last date of publication of   notice required under this section.          (d)  The board shall confirm or ratify a contract by a   majority vote.          (e)  A contract may be the sole basis or a supplement to the   basis for securing a bond of the authority.          Sec. 8513.0318.  AWARD OF CERTAIN CONSTRUCTION AND SERVICE   CONTRACTS. (a) The board shall award any construction,   maintenance, operation, or repair contract, contract for the   purchase of material, equipment, or supplies, or contract for   services if the contract will require an estimated expenditure of   more than the maximum amount for which competitive bidding is   required by Chapter 49, Water Code, to the lowest and best bidder.          (b)  The board:                (1)  shall:                      (A)  before awarding a contract under this   section, publish notice to bidders once each week for two   consecutive weeks; and                      (B)  adopt bylaws for the publication of notice to   bidders and any related procedures; and                (2)  may prescribe the amount of estimated expenditures   subject to competitive bidding.          (c)  In the event of an emergency, the authority may award a   contract necessary to protect and preserve the public health and   welfare or the authority's property without using bidding   procedures.          (d)  A director is ineligible to submit a bid for a contract   under this section.          (e)  Notwithstanding this section, the authority may:                (1)  purchase surplus property from the United States   by negotiated contract and without advertising for bids; and                (2)  use any procurement method under:                      (A)  Chapter 49, Water Code; or                      (B)  other applicable general law.          (f)  This section does not apply to a purchase contract, a   procurement contract, or a contract described by Section 49.278,   Water Code.          Sec. 8513.0319.  ACQUISITION, MAINTENANCE, AND OPERATION OF   PROPERTY; EMINENT DOMAIN. (a) The authority may acquire by   purchase, lease, gift, or any other manner and maintain, use, and   operate property of any kind inside or outside the authority   necessary to the exercise of the powers, rights, privileges, and   functions conferred on the authority by this chapter and by the   exercise of the power of eminent domain in the manner provided by   Subsection (b).          (b)  The authority may exercise the power of eminent domain   in the manner provided by the general law applicable to a district   created under Section 59, Article XVI, Texas Constitution.          (c)  The authority's authority under this section to   exercise the power of eminent domain expired on September 1, 2013,   unless the authority submitted a letter to the comptroller in   accordance with Section 2206.101(b), Government Code, not later   than December 31, 2012.          Sec. 8513.0320.  PRELIMINARY INVESTIGATIONS AND SURVEYS.   (a) The authority may make preliminary investigations and surveys   in the manner and for the purposes specified in Chapters 49 and 51,   Water Code, or other applicable general law.          (b)  The authority may make a preliminary investigation or   survey independently at its own cost or jointly with others or may   contribute to the cost of a preliminary investigation or survey   made by another.          (c)  For purposes of procuring cooperation by the federal   government, any project lawfully within the scope of the purposes   of this chapter may be approved for construction as a federal   project under such contractual terms as may be demanded by the   United States Congress.          Sec. 8513.0321.  SALE, LEASE, MORTGAGE, OR OTHER DISPOSITION   OF AUTHORITY PROPERTY. (a) The authority may not:                (1)  mortgage or otherwise encumber authority property   of any kind, or any interest in authority property; or                (2)  acquire any property or interest in property   subject to a mortgage or conditional sale.          (b)  Subsection (a) does not prevent pledging authority   revenue or income of any kind, except an ad valorem tax imposed by   the authority under Section 8513.0601.          (c)  This chapter does not authorize the sale, lease, or   other disposition of authority property of any kind, or an interest   in authority property, by the authority or a receiver of any   authority property unless authorized under this chapter or   applicable general law.          (d)  Notwithstanding Subsection (c), the authority may sell   or otherwise dispose of authority property of any kind, or an   interest in authority property, if the board, by the affirmative   vote of a majority of members of the board present at a regular or   special meeting, determines that the property or interest is not   convenient to the business of the authority and is surplus.          (e)  The board shall publish notice of a proposed sale once   each week for two consecutive weeks in a newspaper of general   circulation in the county or counties where the property or   interest is located if:                (1)  the appraised value of the property or interest   exceeds $5,000; and                (2)  the property or interest is not partial or total   consideration in a transaction for the exchange of property.          (f)  Authority property is exempt from forced sale. The sale   of authority property under a judgment rendered in a suit is   prohibited.          Sec. 8513.0322.  OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;   RELOCATION OF ROADS. The authority may overflow and inundate any   public land or public property and require the relocation of a road   or highway in the manner and to the extent permitted to a district   organized under general law pursuant to Section 59, Article XVI,   Texas Constitution.          Sec. 8513.0323.  COST OF RELOCATING OR ALTERING PROPERTY.   If the authority's exercise of the power of eminent domain, the   power of relocation, or any other power granted by this chapter   makes necessary relocating, raising, rerouting, changing the grade   of, or altering the construction of a railroad or street railway,   the necessary action shall be accomplished at the authority's sole   expense.          Sec. 8513.0324.  CONSTRUCTION, MAINTENANCE, AND OPERATION   OF FACILITIES. The authority may construct, extend, improve,   maintain, and reconstruct, cause to be constructed, extended,   improved, maintained, and reconstructed, and use and operate   facilities of any kind necessary or convenient to the exercise of   the authority's powers, rights, privileges, and functions.          Sec. 8513.0325.  FRANCHISES AND RIGHTS RELATING TO NAVIGABLE   CANALS AND WATERWAYS. (a) The authority may grant a franchise or   right to any person for the use of navigable canals or waterways and   all auxiliary navigational systems or facilities to aid navigation   of navigable canals or waterways of the San Antonio River.          (b)  Unless granted a franchise by the authority, a person   may not provide, maintain, or operate a facility or aid of   navigation connected with a navigable canal or waterway described   by Subsection (a) or an auxiliary navigational system or facility   that is intended for public use.          (c)  The board may grant a franchise by ordinance. A   franchise:                (1)  may not exceed a term of 50 years; and                (2)  may be for the design, construction, repair,   enlargement, alteration, maintenance, operation of, and service   from or use of any facility to be provided for use in navigation on   navigable canals or waterways and all auxiliary navigational   systems or facilities, whether on land or in or on water.          (d)  An ordinance granting a franchise:                (1)  must:                      (A)  contain provisions:                            (i)  adequate to regulate the fees, tolls,   rates, or exactions to be demanded for the use of, or service to be   rendered by any means or facility to be provided or operated under,   the franchise; and                            (ii)  reasonably required to procure service   adequate to serve the public necessity and convenience; and                      (B)  be uniform, reasonable, and without   discrimination against any person with regard to any charges or   conditions of use or service; and                (2)  may:                      (A)  contain provisions for the payment of   reasonable fees or other charges to be paid to the authority; and                      (B)  provide reasonable and commensurate   penalties as provided by Section 49.004, Water Code, to procure   observance of the conditions of a franchise granted or compliance   with the rules established by the ordinance.          (e)  The board may:                (1)  require uniform and adequate analytic accounting   systems and forms and periodic reports based on those systems and   forms;                (2)  audit a franchise holder;                (3)  provide for other reasonable regulations designed   to protect the public; and                (4)  by ordinance:                      (A)  establish rules necessary or designed to:                            (i)  protect physical property owned by the   authority or owned or operated by a franchise holder; or                            (ii)  effect the safety or efficient use of   property described by Subparagraph (i); and                      (B)  provide for reasonable and commensurate   penalties for a violation of this section, as provided by Section   49.004, Water Code.          (f)  Unless otherwise provided, a franchise granted under   this section may be revoked or suspended only by order of a district   court within the county in which the authority may maintain its   general office.          Sec. 8513.0326.  CONCESSIONS AND FRANCHISES RELATING TO   WORKS OF IMPROVEMENT, PARKS, RECREATIONAL FACILITIES, AND FISH OR   WILDLIFE PRESERVES AND RESERVES. The authority may grant to any   person a concession or franchise on the premises of any work of   improvement, park, recreational facility, or fish or wildlife   preserve or reserve.          Sec. 8513.0327.  OFFICIAL NEWSPAPER. The authority may   designate an official newspaper in each county in the authority. An   official newspaper must have general circulation in the county in   which the newspaper is situated.          Sec. 8513.0328.  AUTHORITY CONSTABULARY. (a) The authority   may constitute and maintain an independent constabulary.          (b)  A constabulary constituted under this section is   subject to the oath and bond requirements of a county sheriff under   Section 85.001, Local Government Code.          (c)  A constabulary shall police authority property and   facilities controlled by the authority.          (d)  A constabulary may make arrests:                (1)  to prevent injury to authority property and   facilities controlled by the authority or for a violation of a penal   ordinance of the authority; and                (2)  inside or outside the authority, upon complaint or   indictment for a violation of a penal ordinance of the authority.          Sec. 8513.0329.  STATE SUPERVISION AND APPROVAL. (a) The   commission shall cooperate with the authority to:                (1)  make investigations and plans; and                (2)  to the extent provided by Subsection (b), approve   investigations and plans for improvements provided by the   authority.          (b)  This section applies only to commission approval of   plans that are appropriate under general law.          (c)  Except for a plan regarding the use of water that is   permitted by the state, a plan for improvements adopted by the   federal government controls.          Sec. 8513.0330.  COORDINATION WITH NONPROFIT ORGANIZATION.   (a) In this section, "affiliated nonprofit organization" means a   nonprofit organization:                (1)  created by the authority; or                (2)  for which the authority, board, or authority   employees have a right to appoint one or more of the members of the   nonprofit organization's governing body.          (b)  The authority may contract or otherwise coordinate with   a nonprofit organization, including an affiliated nonprofit   organization, to accomplish the purposes of the authority.          (c)  Directors may not constitute a majority of the board of   directors or other governing body of an affiliated nonprofit   organization. An authority employee may not serve on the board of   directors or other governing body of an affiliated nonprofit   organization.          (d)  The board shall develop a policy regarding fund-raising   activities of a nonprofit organization that enters into a contract   or otherwise coordinates with the authority. The policy must:                (1)  include acceptable and prohibited fund-raising   activities;                (2)  specify how fund-raising is conducted and   supervised; and                (3)  include criteria for seeking and selecting   corporate sponsors to ensure that sponsorships serve the public   interest and are consistent with the purposes of the authority.          (e)  A memorandum of understanding between the authority and   an affiliated nonprofit organization entered into under this   section must include the policy developed under Subsection (d).   SUBCHAPTER D. REGULATORY POWERS; ENFORCEMENT AND COURT REVIEW   PROVISIONS          Sec. 8513.0401.  ADOPTION OF RULES. The authority may by   ordinance adopt reasonable rules to:                (1)  carry out this chapter;                (2)  protect and secure authority property and works of   improvement; and                (3)  regulate pollution, residence, hunting, fishing,   boating, and camping, and any other recreational and business   privileges on any navigable river or reservoir in the authority or   on any land owned by the authority.          Sec. 8513.0402.  ENFORCEMENT OF RULES; PENALTY.  The   authority by rule may prescribe reasonable and commensurate   penalties for the violation of an authority rule, as provided by   Section 49.004, Water Code.          Sec. 8513.0403.  NOTICE OF RULE PROVIDING PENALTY.  (a)  If   the authority adopts a rule that provides a penalty, the authority   must publish a substantive statement of the rule and the penalty   once a week for two consecutive weeks in a newspaper of general   circulation in each county in which the rule applies.          (b)  The substantive statement must be as condensed as   possible so that the act prohibited by the rule can be easily   understood.          (c)  The substantive statement may include notice of any   number of rules.          (d)  The notice must state that:                (1)  a person who violates the rule is subject to a   penalty; and                (2)  the rule is on file in the authority's principal   office, where the rule may be read by any interested person.          (e)  A rule takes effect on the fifth day after the date of   the second publication of the statement under this section.          Sec. 8513.0404.  JUDICIAL NOTICE OF RULES. A court shall   take judicial notice of a rule adopted under this subchapter and   published as required by Section 8513.0403.          Sec. 8513.0405.  RECOVERY OF LITIGATION COSTS. Section   49.004, Water Code, governs the recovery of costs incurred by the   authority in any suit by the authority to enforce its rules.          Sec. 8513.0406.  APPEAL BOND NOT REQUIRED. The authority is   not required to give bond on any appeal from judgment in any court.   SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS          Sec. 8513.0501.  OBLIGATION PAYABLE. A debt, liability, or   obligation of the authority for the payment of money, however   entered into or incurred and whether arising from an express or   implied contract or otherwise, is payable solely:                (1)  out of the revenue received by the authority with   respect to its properties; or                (2)  from any other money or income from any source   coming into the authority's possession, including proceeds of sale   of bonds.          Sec. 8513.0502.  FISCAL YEAR. The authority's fiscal year   ends on September 30 of each year.   SUBCHAPTER F. TAX PROVISIONS          Sec. 8513.0601.  AUTHORITY TO IMPOSE AD VALOREM TAX. (a)   The authority may impose an ad valorem tax throughout the territory   of the authority at a rate not to exceed the rate approved at an   election held in accordance with Section 8513.0602 for:                (1)  the maintenance of the authority and its   improvements;                (2)  general administration; or                (3)  planning and other services with respect to any of   the purposes, rights, privileges, and functions of the authority.          (b)  The tax may not:                (1)  be used to pay for or finance:                      (A)  the construction of a dam, reservoir, levee,   channel, pipeline, or other major physical work of the authority;                      (B)  the cost or expenses of a right-of-way   acquisition; or                      (C)  damages awarded by a court for a suit brought   under Section 17, Article I, Texas Constitution; or                (2)  be pledged to any issue of or the redemption of   bonds authorized under Section 8513.0702.          Sec. 8513.0602.  ELECTION FOR AD VALOREM TAX. (a) The board   may impose an ad valorem tax within the maximum tax rate approved at   the election for a purpose authorized by this subchapter if the tax   is approved at an election held in the authority by a majority of   the votes cast:                (1)  throughout the authority; and                (2)  in any three counties in the authority.          (b)  The election must be ordered by ordinance of the board.   The ordinance must include for each applicable county in the   authority the polling places in that county where the election is to   be held.          Sec. 8513.0603.  PUBLIC HEARING; NOTICE. (a) If the board   orders an election under Section 8513.0602, the board must hold a   public hearing in each county in the authority to discuss the   proposed tax issue.          (b)  Each public hearing must be held:                (1)  not less than 10 days before the date of the   scheduled election; and                (2)  not more than 25 days before the date of the   scheduled election.          (c)  Notice of the public hearing must be given by publishing   the notice in at least one newspaper of general circulation in each   county where the hearing is to be held. The notice must:                (1)  be published at least 10 days before the date of   the hearing; and                (2)  include the time, day, date, place, and purpose of   the hearing.          Sec. 8513.0604.  MAXIMUM TAX RATE. The maximum rate of the   tax that may be imposed under this subchapter for any year is two   cents on each $100 of assessed valuation of taxable property.          Sec. 8513.0605.  ASSESSMENT AND COLLECTION OF TAXES. (a)   The authority's tax rate shall be uniform throughout the territory   of the authority. The chair and secretary of the board shall   certify the tax rate to the assessor-collector of each included   county.          (b)  The fee of each county tax assessor-collector for   assessing and collecting the authority's taxes may not exceed two   percent of the taxes collected, to be paid over and disbursed in   each county in the same manner as other fees of office.          Sec. 8513.0606.  LEGISLATIVE INTENT. It is the intent of the   legislature that:                (1)  an ad valorem tax imposed by the authority:                      (A)  enables the authority to accomplish its   purposes, including the maximum development of the authority's soil   and water resources, it being hereby found and determined that the   benefits to be realized from the maximum development can be   obtained only through area-wide participation and planning; and                      (B)  may be used to pay for the operation, repair,   or maintenance of any flood control, soil conservation, watershed   protection, or erosion structure or work of improvement constructed   in cooperation with the federal government, provided that any   operation, repair, or maintenance cost shall be paid for out of   taxes thus collected in the county in which the particular   structure or work of improvement is situated; and                (2)  the construction of any dam, reservoir, levee,   channel, pipeline, or other major physical work of the authority   shall be paid for or financed by revenue bonds of the authority to   be redeemed either by the sale of services or by taxes to be imposed   by a county or municipality and paid over to the authority as an   independent contractor of the county or municipality.          Sec. 8513.0607.  APPLICABILITY OF SUBCHAPTER. This   subchapter does not apply to a tax imposed under Subchapter H.   SUBCHAPTER G. BONDS, BORROWED MONEY, AND GRANTS          Sec. 8513.0701.  BORROWED MONEY AND GRANTS. (a) The   authority may:                (1)  borrow money for the authority's corporate   purposes;                (2)  execute proper notes and other evidence of   indebtedness;                (3)  borrow money or accept a grant from the United   States or this state and, in connection with the loan or grant,   enter into any agreement the United States or the corporation or   agency may require;                (4)  make and issue bonds for money borrowed, in the   manner and to the extent provided by Sections 8513.0702, 8513.0703,   8513.0704, 8513.0705, and 8513.0706; and                (5)  participate in and be the beneficiary of any plan   that may be evolved by this state or the United States for   guaranteeing or otherwise subsidizing the authority's obligations.          (b)  After an ad valorem tax is approved at an election held   under Section 8513.0602, the board may borrow money payable from   the tax and may evidence the loan by a note given in the authority's   name.          Sec. 8513.0702.  POWER TO ISSUE BONDS. (a) For the purpose   of constructing improvements related to the exercise of any power   conferred on the authority by law, the authority may, without an   election, issue bonds secured by a pledge of revenues of the   authority without reference to their source and with the priority   of liens prescribed in the proceedings authorizing the issuance of   the bonds.          (b)  The bonds must be authorized by a board resolution   concurred in by at least eight directors.          Sec. 8513.0703.  TERMS OF ISSUANCE. Authority bonds may be:                (1)  sold for cash;                (2)  issued on terms the board determines in exchange   for any property, or any interest in property, that the board   considers necessary or convenient for the corporate purpose for   which the bonds are issued; or                (3)  issued in exchange for principal amounts or other   obligations of the authority, whether matured or unmatured.          Sec. 8513.0704.  DEPOSIT OF PROCEEDS. The proceeds of sale   of authority bonds may be deposited in one or more banks or trust   companies and may be paid out according to the terms on which the   authority and the purchasers of the bonds agree.          Sec. 8513.0705.  RESOLUTION PROVISIONS. (a) A resolution   authorizing bonds may contain provisions approved by the board that   are not inconsistent with this chapter, including provisions:                (1)  reserving the right to redeem the bonds at a time,   in an amount, and at a price not to exceed 105 percent of the   principal amount of the bonds, plus accrued interest;                (2)  providing for the setting aside of sinking funds   or reserve funds and the regulation and disposition of those funds;                (3)  securing the payment of the principal of and   interest on the bonds and of the sinking fund or reserve fund   payments associated with the bonds by pledging all or any part of   the gross or net revenue subsequently received by the authority   from any source;                (4)  prescribing the purposes to which the bonds or any   bonds subsequently issued, or the proceeds of the bonds, may be   applied;                (5)  agreeing to set and collect rates and charges   sufficient to produce net revenue adequate to pay the items   described by Subdivisions (1), (2), and (3), and prescribing the   use and disposition of all revenue;                (6)  prescribing limitations on the issuance of   additional bonds and on the agreements that may be made with the   purchasers and successive holders of those bonds;                (7)  regarding the construction, extension,   improvement, reconstruction, operation, maintenance, and repair of   the authority's properties and the carrying of insurance on all or   any part of those properties covering:                      (A)  loss, damage, or loss of use and   reconstruction, operation, maintenance, and repair; and                      (B)  loss, damage, or loss of use and occupancy   resulting from specified risks;                (8)  setting the procedure by which the authority may   change the terms of a contract with the bondholders, the amount of   bonds the holders of which must consent to that change, and the   manner in which the consent may be given; and                (9)  providing for the execution and delivery by the   authority to a bank or trust company authorized by law to accept   trusts, or to the United States or any officer of the United States,   of indentures and agreements for the benefit of the bondholders   setting forth any of the agreements authorized by this chapter to be   made with or for the benefit of the bondholders and any other   provisions that are customary in such indentures or agreements.          (b)  A provision authorized by this section that is contained   in a bond resolution is part of the contract between the authority   and the bondholders.          Sec. 8513.0706.  DEFAULT PROCEDURES. (a) This section   applies only to a default in:                (1)  the payment of the interest on bonds as the   interest becomes due and payable;                (2)  the payment of the principal of bonds as they   become due and payable, whether at maturity, by call for   redemption, or otherwise; or                (3)  the performance of an agreement made with the   purchasers or successive holders of bonds.          (b)  A resolution authorizing bonds and any indenture or   agreement entered into under the resolution may provide that in the   event of a default described by Subsection (a) that continues for a   period, if any, prescribed by the resolution, the trustee under the   indenture entered into with respect to the bonds authorized by the   resolution, or, if there is no indenture, a trustee appointed in the   manner provided in the resolution by the holders of 25 percent in   aggregate principal amount of the bonds authorized by the   resolution and then outstanding, and on the written request of the   holders of 25 percent in aggregate principal amount of the bonds   authorized by the resolution then outstanding, shall, in the   trustee's own name, but for the equal and proportionate benefit of   the holders of all of the bonds, and with or without having   possession of the bonds:                (1)  by mandamus or other suit, action, or proceeding   at law or in equity, enforce all rights of the bondholders;                (2)  bring suit on the bonds or the appurtenant   coupons;                (3)  by action or suit in equity, require the authority   to account as if it were the trustee of an express trust for the   bondholders;                (4)  by action or suit in equity, enjoin any acts or   things that may be unlawful or in violation of the rights of the   bondholders; or                (5)  after such notice to the authority as the   resolution may provide, declare the principal of all of the bonds   due and payable, and if all defaults have been made good, then with   the written consent of the holders of 25 percent in aggregate   principal amount of the bonds then outstanding, annul the   declaration and its consequences.          (c)  Notwithstanding Subsection (b), the holders of more   than a majority in principal amount of the bonds authorized by the   resolution and then outstanding, by written instrument delivered to   the trustee, are entitled to direct and control any and all action   taken or to be taken by the trustee under this section.          (d)  A resolution, indenture, or agreement relating to bonds   may provide that in a suit, action, or proceeding under this   section, the trustee, whether or not all of the bonds have been   declared due and payable and with or without possession of any of   the bonds, is entitled to the appointment of a receiver who may:                (1)  enter and take possession of all or any part of the   properties of the authority;                (2)  operate and maintain the properties;                (3)  set, collect, and receive rates and charges   sufficient to provide revenue adequate to pay the items specified   by Sections 8513.0705(a)(1), (2), and (3) and the costs and   disbursements of the suit, action, or proceeding; and                (4)  apply the revenue in conformity with this chapter   and the resolution authorizing the bonds.          (e)  In a suit, action, or proceeding by a trustee under this   section, the reasonable fees, attorney's fees, and expenses of the   trustee and of the receiver, if any, constitute taxable   disbursements, and all costs and disbursements allowed by the court   are a first charge on any revenue pledged to secure the payment of   the bonds.          (f)  The courts of Bexar County have jurisdiction of a suit,   action, or proceeding by a trustee on behalf of the bondholders and   of all property involved in the suit, action, or proceeding.          (g)  In addition to the powers specifically provided by this   section, a trustee has all powers necessary or appropriate for the   exercise of the powers specifically provided or incident to the   general representation of the bondholders in the enforcement of   their rights.          Sec. 8513.0707.  POWER OF AUTHORITY TO PURCHASE BONDS ISSUED   BY AUTHORITY. (a) Using any money available for the purpose, the   authority may purchase bonds issued by it at a price not exceeding   the redemption price applicable at the time of purchase, or, if the   bonds are not redeemable, at a price not exceeding the principal   amount of the bonds plus accrued interest.          (b)  All bonds purchased under this section shall be   canceled, and bonds may not be issued in lieu of those bonds.          Sec. 8513.0708.  BONDS EXEMPT FROM TAXATION. A bond issued   under this chapter and the interest on the bond are exempt from   taxation, except inheritance taxes, by this state or by any   political subdivision of this state.   SUBCHAPTER H.  POLLUTION CONTROL DISTRICT          Sec. 8513.0801.  POWER TO ESTABLISH POLLUTION CONTROL   DISTRICT. (a) The authority may establish one or more pollution   control districts for the purpose of accomplishing any of the   powers, purposes, rights, or privileges vested in the authority.          (b)  A pollution control district may be established by   resolution of the board.          Sec. 8513.0802.  RESOLUTION PROCEDURES CALLING FOR CREATION   OF POLLUTION CONTROL DISTRICT. (a) A resolution of the board   calling for the creation of a pollution control district must:                (1)  define the boundaries of the proposed district;   and                (2)  set a time and place for a public hearing on the   matters described in the resolution.          (b)  If the authority does not intend to issue bonds on   behalf of the proposed district, in addition to the requirements of   Subsection (a), the resolution must declare taxes for the   maintenance of the authority and the authority's improvements shall   be imposed on the taxable property in the proposed district.          (c)  If the authority intends to issue bonds on behalf of the   proposed district, in addition to the requirements of Subsection   (a), the resolution must:                (1)  estimate the principal amount and state the   purpose of those bonds; and                (2)  declare that taxes for the payment of bonded   indebtedness shall be imposed exclusively on the taxable property   in the proposed district.          (d)  The board may adopt resolutions described by   Subsections (b) and (c) and hold public hearings for those   resolutions and any applicable proposed bond and maintenance taxes   at the same time.          (e)  After a public hearing is held in accordance with   Section 8513.0803, the board shall review any findings and   recommendations resulting from the hearing. The board may alter,   modify, or change any provision of the resolution, except as   provided by Section 8513.0809. The board may adopt a resolution   creating the proposed pollution control district. The resolution   creating a pollution control district must:                (1)  state the purposes for which the proposed district   has been created;                (2)  designate the proposed district's boundaries;                (3)  declare that the indebtedness to be incurred or   the cost of services to be rendered by the authority for the   proposed district's benefit shall be payable from taxes imposed on   property in the district;                (4)  find that the property in the proposed district   will benefit from the indebtedness proposed to be incurred or the   services proposed to be rendered by the authority on the district's   behalf; and                (5)  order an election in the proposed district to   authorize the indebtedness or maintenance tax, stating:                      (A)  the date of the election;                      (B)  the proposition or propositions to be voted   on;                      (C)  the location of the polling places; and                      (D)  the names of the election officers.          Sec. 8513.0803.  PUBLIC HEARING ON CREATION OF POLLUTION   CONTROL DISTRICT; NOTICE.  (a)  The authority must hold a public   hearing on the matters set forth in a resolution calling for the   creation of a pollution control district before the proposed   district is established.          (b)  The hearing may be held in connection or concurrently   with another public hearing, meeting, or proceeding conducted by   the board.          (c)  The hearing must be held within the boundaries of the   proposed pollution control district.          (d)  The hearing may be conducted by:                (1)  a majority of the board;                (2)  one or more directors; or                (3)  one or more authority employees, as designated by   the board.          (e)  If the hearing is conducted by fewer than a majority of   directors in accordance with Subsection (d)(2) or (3), the   individual or individuals conducting the hearing may accept   evidence and make recommendations to the board on any proposed   changes to the resolution.          (f)  Notice of the hearing must be published in a newspaper   of general circulation within the boundaries of the proposed   pollution control district not more than 30 days before the date of   the hearing and not less than 15 days before the date of the   hearing. Except as otherwise provided by this section, Chapter 551,   Government Code, applies to notice of a public hearing under this   section.          Sec. 8513.0804.  PUBLIC TESTIMONY ON CREATION OF POLLUTION   CONTROL DISTRICT. (a) A hearing on the matters set forth in a   resolution calling for the creation of a pollution control district   must include an opportunity for:                (1)  any interested person, including a person who owns   property or resides in the authority, to appear and present   evidence relevant to a matter set forth in the resolution calling   for the creation of the proposed district; and                (2)  a person who resides in or owns property in the   boundaries of the proposed district to appear and present evidence   regarding whether the person will receive benefits from the   proposed improvements or tax.          (b)  Failure to appear at the public hearing constitutes a   waiver of all objections that the absent person might have had to   any matters set forth in the resolution calling for the creation of   the proposed pollution control district.          Sec. 8513.0805.  MAINTENANCE TAX AND BOND ELECTION FOR   POLLUTION CONTROL DISTRICT. An election ordered within the   boundaries of a proposed pollution control district to authorize   the imposition of a maintenance tax or the issuance of bonds may be   held at the same time as any general or special election.          Sec. 8513.0806.  JUDICIAL REVIEW OF RESOLUTION CREATING   POLLUTION CONTROL DISTRICT. (a) A resolution of the board creating   a pollution control district adopted under Section 8513.0802(e) is   final and not subject to judicial review except on the basis of   whether the resolution is supported by substantial evidence.          (b)  An action or proceeding questioning, contesting, or   denying the validity of a resolution creating a pollution control   district or any related proceeding must be brought not later than   the 30th day after the effective date of the resolution. If an   action or proceeding is not brought within that period, the   resolution and any related proceedings are valid and incontestable.          Sec. 8513.0807.  FILING REQUIREMENT. A resolution of the   board creating a pollution control district adopted under Section   8513.0802(e) shall be filed in the deed records of each county in   the district's territory.          Sec. 8513.0808.  POLLUTION CONTROL DISTRICT TERRITORY. (a)   A pollution control district may include any territory, whether or   not contiguous, in the authority.          (b)  If any portion of the territory of a proposed pollution   control district falls within the boundaries or the exclusive   extraterritorial jurisdiction of a municipality, the board must   obtain the municipality's consent before creating the proposed   district. Consent of a municipality:                (1)  may contain any conditions agreed on by the   authority and the municipality; and                (2)  must be evidenced by an enacted ordinance of the   municipality's governing body.          Sec. 8513.0809.  ANNEXATION OF TERRITORY TO POLLUTION   CONTROL DISTRICT. (a) Territory may be annexed to an existing   pollution control district in the manner provided by this section.          (b)  The board may annex territory under this section by   resolution of the board or by a petition requesting annexation. The   petition must:                (1)  to the extent practicable, set forth the matters   described in a resolution calling for the creation of the pollution   control district, as described by Section 8513.0802(b) or (c);                (2)  request a public hearing by the board on the   petition; and                (3)  be signed by:                      (A)  the owners of 50 percent or more of the value   of the territory to be annexed;                      (B)  a majority of the residents of the territory   to be annexed; or                      (C)  if fewer than three registered voters reside   in the territory to be annexed, the owner or owners of the   territory.          (c)  The board shall hold a public hearing on the petition in   the same manner as a public hearing under Section 8513.0803.          (d)  If the board finds that the territory should be annexed,   the board may adopt a resolution:                (1)  ordering an election on the annexation:                      (A)  in the territory contained in the existing   pollution control district; and                      (B)  in the territory to be annexed; or                (2)  if the petition for annexation was brought under   Subsection (b)(3)(C), annexing the territory to the district.          (e)  Except as provided by Subsection (f), the board may not   annex the territory until a majority of the registered voters:                (1)  in the territory of the existing pollution control   district are in favor of annexation; and                (2)  in the territory to be annexed to the pollution   control district are in favor of annexation and, if applicable, in   favor of:                      (A)  allowing a maintenance tax on the land to be   annexed;                      (B)  assuming the pro rata share of any previously   authorized indebtedness of the existing district; or                      (C)  allowing any taxes necessary to support tax   or tax-revenue bonds previously voted on that have not yet been   issued on behalf of the existing pollution control district and   authorizing the board to impose a tax on the property for payment of   the unissued bonds when those bonds are issued.          (f)  A resolution of the board annexing territory adopted   under Subsection (d)(2) is temporary until a majority of the   registered voters in an election held in the pollution control   district including the annexed territory are in favor of:                (1)  annexing the territory;                (2)  ratifying any unissued tax or revenue bonds of the   authority to be issued on behalf of the district; and                (3)  authorizing the board to impose within the   district a maintenance tax or a tax to pay for any unissued bonds   when issued.          (g)  If a majority of the registered voters in an election   held under Subsection (d) or (f) are in favor of the annexation, the   board shall adopt a resolution redefining the boundaries of the   pollution control district and record the resolution in the deed   records of each county containing the annexed territory.          Sec. 8513.0810.  POWER TO ISSUE BONDS; TAX FOR POLLUTION   CONTROL DISTRICT. (a) The board may:                (1)  incur any indebtedness necessary to provide all   improvements and the maintenance of those improvements required to   achieve the purposes for which any pollution control district is   organized;                (2)  impose taxes necessary for the payment of the   interest of any bonds issued under this section; and                (3)  create a sinking fund for the payment of bonds   issued under this section.          (b)  Taxes imposed under this section are a lien on the   property assessed for the payment of the taxes.          (c)  If the majority of the votes in an election held under   Section 8513.0805 or 8513.0809 are in favor of authorizing the   authority to incur indebtedness for the benefit of a pollution   control district, the board may issue bonds for that purpose.          (d)  If the board issues bonds under Subsection (c), the   board may impose a tax only on property in the pollution control   district to pay the principal of or interest on the bonds.          (e)  If the majority of the votes in an election held under   Section 8513.0805 or 8513.0809 are in favor of authorizing the   authority to impose an ad valorem tax, the board may impose the tax   only on property in the pollution control district.          (f)  Chapters 49 and 51, Water Code, apply to the imposition   of a tax or the issuance of bonds under this subchapter.          Sec. 8513.0811.  CONFLICT OF LAW.  In all areas of conflict   with this subchapter and Chapters 49 and 51, Water Code, this   subchapter prevails.          SECTION 2.  The following provisions are repealed:                (1)  Chapter 276, Acts of the 45th Legislature, Regular   Session, 1937;                (2)  Section 2, Chapter 504, Acts of the 55th   Legislature, Regular Session, 1957;                (3)  Sections 25, 26, 27, and 28, Chapter 233, Acts of   the 57th Legislature, Regular Session, 1961;                (4)  Sections 10, 11, and 12, Chapter 836, Acts of the   61st Legislature, Regular Session, 1969;                (5)  Section 2, Chapter 604, Acts of the 64th   Legislature, Regular Session, 1975;                (6)  Sections 4 and 5, Chapter 60, Acts of the 67th   Legislature, Regular Session, 1981;                (7)  Sections 2 and 3, Chapter 701, Acts of the 70th   Legislature, Regular Session, 1987; and                (8)  Sections 13 and 14, Chapter 179, Acts of the 88th   Legislature, Regular Session, 2023.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.