Title SD, Special District Local Laws Code

Sec. 8506.004. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effect its purposes. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. April 1, 2017. SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Sec. 8506.051. MEMBERSHIP OF BOARD. (a) The board consists of nine directors appointed by the governor with the advice and consent of the senate. (b) Each director must be a resident of and a freehold property taxpayer in this state. (c) Each director must be a resident of a coun…

Sec. 8506.052. TERMS. Directors are appointed for staggered terms of six years with three directors' terms expiring on February 1 of each odd-numbered year. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. April 1, 2017.

Sec. 8506.053. REMOVAL. A director may be removed by the governor for inefficiency, neglect of duty, or misconduct in office, after at least 10 days' written notice of the charge against the director and an opportunity to be heard in person or by counsel at a public hearing. Adde…

Sec. 8506.054. VACANCY. A vacancy on the board shall be filled by the governor for the unexpired term. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. April 1, 2017.

Sec. 8506.055. VOTING REQUIREMENT. (a) Except as provided by this chapter or the bylaws, action may be taken by the affirmative vote of a majority of the directors present at a meeting. (b) The following are valid only if authorized or ratified by the affirmative vote of at least…

Sec. 8506.056. OFFICERS AND EMPLOYEES. (a) The board shall select a secretary and a treasurer. The treasurer may also hold the office of secretary. (b) The secretary shall keep accurate and complete records of all proceedings of the board. (c) Until the board selects a secretary,…

Sec. 8506.057. SURETY BONDS. (a) The presiding officer, the treasurer, and any other officer, agent, or employee of the authority who is charged with the collection, custody, or payment of authority money shall give bond conditioned on: (1) the faithful performance of the person'…

Sec. 8506.058. AUTHORITY'S OFFICE AND DOMICILE. (a) The board by majority vote shall determine the location of the authority's general office. (b) The county in which the authority's general office is located is the authority's domicile. (c) The general manager is in charge of th…

Sec. 8506.059. CONFLICT OF INTEREST; CRIMINAL PENALTY. (a) A director, officer, agent, or employee of the authority may not be directly or indirectly interested in a contract for the purchase of any property or construction of any work by or for the authority. (b) A person commit…

Sec. 8506.060. DIRECTOR TRAINING PROGRAM. (a) A person who is appointed to and qualifies for office as a director may not vote, deliberate, or be counted as a director in attendance at a meeting of the board until the person completes a training program that complies with this se…

Sec. 8506.061. SEPARATION OF POLICYMAKING AND MANAGEMENT FUNCTIONS. The board shall develop and implement policies that clearly separate the policymaking responsibilities of the board and the management responsibilities of the general manager and staff of the authority. Added by …

Sec. 8506.062. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The board shall develop a policy to encourage the use of: (1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of authority rules; and (2) appropriate alternative di…

Sec. 8506.063. PUBLIC COMMENT POLICY. 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 agenda item at board meetings. Added by Acts 2017, 85th Leg., R.S., Ch. 269 (H.B. 1921), Sec. …

Sec. 8506.101. GENERAL POWERS. (a) The authority has: (1) the powers of government and the authority to exercise the rights, privileges, and functions specified by this chapter; and (2) all powers, rights, privileges, and functions conferred by general law on any district created…

Sec. 8506.102. POWERS RELATED TO WATER OF COLORADO RIVER AND ITS TRIBUTARIES. Inside the boundaries of the authority, the authority may: (1) control, store, and preserve the water of the Colorado River and its tributaries for any useful purpose; and (2) use, distribute, and sell …

Sec. 8506.103. SALE AND DISTRIBUTION OF WATER OUTSIDE BOUNDARIES OF AUTHORITY. The authority may: (1) sell and distribute water outside the boundaries of the authority to any municipality for domestic, municipal, or irrigation purposes or to any person for municipal purposes or i…

Sec. 8506.104. DEVELOPMENT, GENERATION, DISTRIBUTION, AND SALE OF WATER POWER AND ELECTRIC ENERGY. (a) The authority may: (1) develop and generate water power and electric energy inside the boundaries of the authority; and (2) distribute and sell water power and electric energy i…

Sec. 8506.105. PREVENTION OF DAMAGE TO PERSONS OR PROPERTY. The authority may prevent or aid in the prevention of damage to persons or property from the water of the Colorado River and its tributaries. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. Apri…

Sec. 8506.106. FORESTATION AND REFORESTATION; PREVENTION OF SOIL EROSION AND FLOODS. In the watershed of the Colorado River and its tributaries, the authority may: (1) forest, reforest, or aid in foresting or reforesting; and (2) prevent or aid in the prevention of soil erosion a…

Sec. 8506.107. AUTHORITY PROPERTY; EMINENT DOMAIN. (a) The authority may acquire, maintain, use, and operate property of any kind or any interest in property, inside or outside the boundaries of the authority, necessary or convenient to the exercise of the powers, rights, privile…

Sec. 8506.108. 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 …

Sec. 8506.109. 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 genera…

Sec. 8506.110. 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 conv…

Sec. 8506.111. SEAL. The authority may adopt and use a corporate seal. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. April 1, 2017.

Sec. 8506.112. GENERAL CONTRACT POWERS. The authority may make a contract or execute an instrument necessary or convenient to the exercise of the powers, rights, privileges, and functions conferred on the authority by this chapter. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.…

Sec. 8506.113. ADDITIONAL POWERS RELATING TO CONTRACTS, RULES, AND REGULATIONS. The authority may enter into and carry out contracts or establish or comply with rules and regulations concerning labor and materials and other related matters in connection with any project the autho…

Sec. 8506.114. LIMITATIONS ON POWERS OF AUTHORITY. (a) Notwithstanding any right or permit to use the water of the Colorado River and its tributaries for the generation of hydroelectric power that was issued by the former State Board of Water Engineers, was in existence as of May…

Sec. 8506.115. PUBLIC USE OF AUTHORITY'S LAND. (a) The authority may not prevent free public use of its land for recreational purposes, hunting, or fishing except: (1) at such points where, in the opinion of the board, the use would interfere with the proper conduct of the busine…

Sec. 8506.116. COMPLAINTS. (a) The authority shall maintain a system to promptly and efficiently act on complaints filed with the authority. The authority shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of t…

Sec. 8506.151. DISBURSEMENT OF MONEY. The authority may disburse its money only by a check, draft, order, or other instrument signed by a person authorized to sign the instrument by the bylaws or a resolution in which at least five directors concur. Added by Acts 2015, 84th Leg.,…

Sec. 8506.152. ACCOUNTS, CONTRACTS, AND OTHER RECORDS; PUBLIC INSPECTION. (a) The authority shall keep complete and accurate accounts conforming to approved methods of bookkeeping. (b) The accounts and all contracts, documents, and records of the authority shall be kept at the pr…

Sec. 8506.153. FILING OF COPIES OF AUDIT REPORT. Copies of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be certified to by the accountant who performed the audit and filed: (1) as required by Section 49.194, Water Code; and (2) with the comptroller.…

Sec. 8506.154. RATES AND OTHER CHARGES. (a) The board shall establish and collect rates and other charges for the sale or use of water, water connections, power, electric energy, or other services sold, provided, or supplied by the authority. (b) The rates and charges must be rea…

Sec. 8506.155. USE OF EXCESS REVENUE. If the authority receives revenue in excess of that required for the purposes specified by Section 8506.154(b), the board may: (1) use the excess revenue to: (A) establish a reasonable depreciation and emergency fund; or (B) retire bonds issu…

Sec. 8506.156. TAX OR ASSESSMENT OR PLEDGE OF CREDIT OF STATE NOT AUTHORIZED BY CHAPTER. This chapter does not authorize the authority to: (1) levy or collect a tax or assessment; (2) create any debt payable out of taxes or assessments; or (3) in any way pledge the credit of this…

Sec. 8506.201. LOANS AND GRANTS. The authority may: (1) borrow money for the authority's corporate purposes; (2) borrow money or accept a grant from the United States and, in connection with the loan or grant, enter into any agreement the United States or the corporation or agenc…

Sec. 8506.202. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. This chapter does not deprive this state of its power to regulate and control rates or charges to be collected for the use of water, water connections, power, electric energy, or another service. The state …

Sec. 8506.203. OBLIGATION PAYABLE FROM REVENUE. 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…

Sec. 8506.204. POWER TO ISSUE REVENUE BONDS. (a) The authority may issue revenue bonds for any corporate purpose in any amount authorized by the directors but not to exceed an aggregate principal amount of $6 million. (b) The bonds may be secured only by a pledge of the amounts g…

Sec. 8506.205. TERMS OF ISSUANCE. Authority bonds may be: (1) sold for cash; (2) issued on terms the board determines in exchange for property of any kind, or any interest in property, that the board considers necessary or convenient for the corporate purpose for which the bonds …

Sec. 8506.206. DEPOSIT OF PROCEEDS. The proceeds of sale of authority bonds shall be deposited in one or more banks or trust companies, and shall be paid out according to the terms, on which the authority and the purchasers of the bonds agree. Added by Acts 2015, 84th Leg., R.S.,…

Sec. 8506.207. 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 the time or times, in the amounts, and at the pr…

Sec. 8506.208. 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 redemptio…

Sec. 8506.209. 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 redeema…

Sec. 8506.210. BONDS EXEMPT FROM TAXATION. A bond issued under this chapter and the interest on the bond is exempt from taxation, except inheritance taxes, by this state or by any political subdivision of this state. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. …