HB 1615

relating to the nonsubstantive revision of certain local laws
concerning water and wastewater special districts, including a
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1.  NONSUBSTANTIVE REVISION OF LOCAL LAWS
SECTION 1.01.  NAVIGATION DISTRICT.  Subtitle A, Title 5,
Special District Local Laws Code, is amended by adding Chapter 5008
CHAPTER 5008.  WILLACY COUNTY NAVIGATION DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 5008.0102.  FINDINGS OF PURPOSE
SUBCHAPTER B.  DISTRICT ADMINISTRATION
Sec. 5008.0201.  BOARD OF COMMISSIONERS; TERM
Sec. 5008.0202.  ELECTION OF COMMISSIONERS
Sec. 5008.0203.  PRESIDING OFFICER
Sec. 5008.0204.  GENERAL MANAGER OR PORT DIRECTOR
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 5008.0301.  AUTHORITY TO ACQUIRE AND LEASE LAND;
Sec. 5008.0302.  AUTHORITY TO SELL LAND
Sec. 5008.0303.  AUTHORITY TO LEASE OR GRANT EASEMENTS
Sec. 5008.0304.  CONVEYANCE AND ACQUISITION OF CERTAIN
Sec. 5008.0305.  ENTRY ON PROPERTY
Sec. 5008.0306.  POWERS REGARDING PUBLIC AIRPORTS
Sec. 5008.0307.  LAW ENFORCEMENT AND SECURITY SERVICES
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 5008.0401.  AD VALOREM TAX FOR MAINTENANCE AND
Sec. 5008.0501.  APPLICABILITY OF SUBCHAPTER
Sec. 5008.0502.  NOTICE OF ELECTION
Sec. 5008.0504.  TAXES FOR BONDS
CHAPTER 5008.  WILLACY COUNTY NAVIGATION DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 5008.0101.  DEFINITIONS.  In this chapter:
(1)  "Board" means the district's board of navigation
(2)  "Commissioner" means a board member.
(3)  "District" means the Willacy County Navigation
District. (Acts 53rd Leg., R.S., Ch. 404, Sec. 1A.)
Sec. 5008.0102.  FINDINGS OF PURPOSE.  The creation of the
district is essential to accomplish the purposes of Section 59,
Article XVI, Texas Constitution. (Acts 53rd Leg., R.S., Ch. 404,
SUBCHAPTER B.  DISTRICT ADMINISTRATION
Sec. 5008.0201.  BOARD OF COMMISSIONERS; TERM. (a)  The
board consists of five elected commissioners.
(b)  Commissioners serve staggered four-year terms.  (Acts
53rd Leg., R.S., Ch. 404, Secs. 1B(c) (part), (d).)
Sec. 5008.0202.  ELECTION OF COMMISSIONERS.  (a) The
district is divided into four numbered single-member districts for
(b)  The board may revise the single-member districts as
(c)  One commissioner is elected from each single-member
district, and one commissioner is elected from the district at
(d)  The board shall hold an election on the uniform election
date in November of each even-numbered year to elect the
appropriate number of commissioners.  (Acts 53rd Leg., R.S., Ch.
404, Secs. 1B(a), (b), (c) (part), 1C.)
Sec. 5008.0203.  PRESIDING OFFICER.  The commissioner
elected from the district at large serves as the board's presiding
officer. (Acts 53rd Leg., R.S., Ch. 404, Sec. 1B(e).)
Sec. 5008.0204.  GENERAL MANAGER OR PORT DIRECTOR.  (a)  The
(1)  employ a general manager or port director; and
(2)  give the manager or director full administrative
authority to manage and operate the district's affairs, subject
only to the board's supervision.
(b)  The board shall set the term of office and compensation
of the general manager or port director. (Acts 53rd Leg., R.S., Ch.
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 5008.0301.  AUTHORITY TO ACQUIRE AND LEASE LAND;
EMINENT DOMAIN.  (a)  The district may own land adjacent or
accessible to the navigable water in the district, whether acquired
by gift, purchase, or exercise of the power of eminent domain.
(1)  lease all or any part of land the district owns for
any term the board considers prudent or advisable to:
(C)  a government or governmental agency,
including this state or the United States; and
(2)  charge a reasonable toll, fee, rent, or other
(c)  This section does not prevent the district from granting
a revocable license or permit for the use of a limited portion of a
waterfront facility or land the district owns for a purpose
consistent with the development of the district's property.
(d)  The district's authority under this section to exercise
the power of eminent domain expired on September 1, 2013, unless the
district submitted a letter to the comptroller in accordance with
Section 2206.101(b), Government Code, not later than December 31,
2012.  (Acts 53rd Leg., R.S., Ch. 404, Sec. 1 (part); Acts 55th
Leg., R.S., Ch. 141, Sec. 1 (part); New.)
Sec. 5008.0302.  AUTHORITY TO SELL LAND.  The district may
sell any part of land the district owns to any government or
governmental agency, including this state or the United States, for
any amount of money the board considers prudent and advisable if the
board considers the sale necessary and advisable for the proper
development of the port. (Acts 55th Leg., R.S., Ch. 141, Sec. 2.)
Sec. 5008.0303.  AUTHORITY TO LEASE OR GRANT EASEMENTS FOR
CERTAIN PURPOSES.  The district may, for causeway, road, or public
utility purposes, lease, or grant an easement over or along, any
real property the district owns or holds in fee simple or by patent,
(3)  a government or governmental entity, including
this state or the United States. (Acts 55th Leg., R.S., Ch. 141,
Sec. 5008.0304.  CONVEYANCE AND ACQUISITION OF CERTAIN
PROPERTY.  (a)  This section applies only to property, including
land or an interest in land, that:
(2)  the United States desires to enable a United
States department or establishment to carry out the provisions of
an act of Congress in aid of navigation, flood control, or
improvement of water courses in aid of navigation; and
(3)  may be necessary for the construction, operation,
and maintenance of works required for a purpose described by
(1)  on the request of the United States, convey title
or an easement to property, including land or an interest in land,
to the United States with or without monetary consideration; and
(2)  acquire land or a right-of-way necessary to carry
out the provisions or meet the conditions of an act of Congress
described by Subsection (a). (Acts 53rd Leg., R.S., Ch. 404, Sec.
Sec. 5008.0305.  ENTRY ON PROPERTY.  District commissioners,
engineers, and employees may enter any land in the district to
attend to any district business, including to examine the land and
to make plans, surveys, maps, and profiles for improvements
contemplated by the district.  (Acts 53rd Leg., R.S., Ch. 404, Sec.
Sec. 5008.0306.  POWERS REGARDING PUBLIC AIRPORTS.  (a)  The
district, in carrying out the district's powers and functions under
the constitution and statutes of this state, may:
(1)  plan, acquire, own, control, protect, develop,
maintain, and operate, or arrange by lease or contract for the
operation of, a public airport; and
(2)  exercise for a purpose described by Subdivision
(1) any powers granted to the district for other port purposes.
(1)  enter into grant agreements with the United States
to obtain federal grant-in-aid money for public airport purposes;
(2)  accept, receive, disburse, and spend the money for
the purposes, and in accordance with the time and conditions,
provided by the applicable grant agreements.  (Acts 56th Leg.,
Sec. 5008.0307.  LAW ENFORCEMENT AND SECURITY SERVICES.  The
(1)  employ and set the compensation of security
personnel to protect the district's property; or
(2)  pay all or a part of the compensation of a deputy
sheriff of Willacy County or a deputy constable of any precinct in
which the district owns navigation facilities for special services
provided to the district in policing the district's property and
enforcing state laws in the district's territory. (Acts 53rd Leg.,
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 5008.0401.  AD VALOREM TAX FOR MAINTENANCE AND
OPERATIONS.  (a)  The board may impose an ad valorem tax at a rate
not to exceed 20 cents on each $100 valuation of taxable property in
the district for the maintenance and operation of the district and
(b)  The tax at its authorized rate must be imposed in the
manner prescribed for bond taxes under Subchapter E, subject to the
limit prescribed by Subsection (a).  (Acts 53rd Leg., R.S., Ch. 404,
Sec. 5008.0501.  APPLICABILITY OF SUBCHAPTER.  This
subchapter applies only to bonds payable from both ad valorem taxes
Sec. 5008.0502.  NOTICE OF ELECTION.  (a)  Instead of any
other notice required by law, notice of an election to issue bonds
must be published once a week for two consecutive weeks in a
newspaper of general circulation in the district and must state:
(2)  the place at which the election will be held; and
(3)  the proposition to be voted on at the election.
(b)  The first publication under Subsection (a) must be at
least 14 days before the date of the election.  (Acts 53rd Leg.,
Sec. 5008.0503.  FORM OF BONDS.  Bonds authorized at an
(1)  issued by board order; and
(2)  signed by the board's presiding officer and
secretary.  (Acts 53rd Leg., R.S., Ch. 404, Sec. 4 (part).)
Sec. 5008.0504.  TAXES FOR BONDS.  (a)  If bonds are issued,
the board shall impose an ad valorem tax on all taxable property in
the district in each year during which the bonds are outstanding and
(b)  The board shall impose the tax at the rate necessary to
generate an amount of revenue which, together with the net revenue
in the interest and sinking fund for the bonds at that time, is
sufficient to pay the principal of and interest on the bonds that
will be due during the next fiscal year.
(c)  The board shall certify to the Willacy County tax
assessor-collector the rate of the tax imposed for the bonds.
(d)  The Willacy County tax assessor-collector shall:
(1)  collect the bond taxes in the same manner provided
by law for the collection of other district taxes; and
(2)  remit all taxes collected to:
(A)  the county treasurer of Willacy County; or
(B)  the district's account.  (Acts 53rd Leg.,
SECTION 1.02.  RIVER AUTHORITIES.  Subtitle G, Title 6,
Special District Local Laws Code, is amended by adding Chapters
8512 and 8515 to read as follows:
CHAPTER 8512.  GUADALUPE-BLANCO RIVER AUTHORITY
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 8512.0102.  CREATION AND NATURE OF AUTHORITY
Sec. 8512.0103.  REVIEW SCHEDULE UNDER SUNSET ACT
Sec. 8512.0105.  LIBERAL CONSTRUCTION OF CHAPTER
SUBCHAPTER B.  BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
Sec. 8512.0201.  NATURE OF BOARD
Sec. 8512.0202.  MEMBERSHIP OF BOARD
Sec. 8512.0206.  VOTING REQUIREMENT
Sec. 8512.0207.  OFFICERS, AGENTS, AND EMPLOYEES
Sec. 8512.0209.  AUTHORITY'S DOMICILE AND OFFICE
Sec. 8512.0210.  DIRECTOR TRAINING PROGRAM
Sec. 8512.0211.  SEPARATION OF POLICYMAKING AND
Sec. 8512.0213.  ALTERNATIVE DISPUTE RESOLUTION
Sec. 8512.0214.  PUBLIC TESTIMONY
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 8512.0301.  GENERAL POWERS
Sec. 8512.0302.  POWERS RELATED TO WATER OF RIVERS AND
Sec. 8512.0303.  POWERS RELATED TO GROUNDWATER
Sec. 8512.0304.  ACQUISITION OF WATER, WATER SUPPLY
FACILITIES, AND CONSERVATION STORAGE
Sec. 8512.0305.  USE, DISTRIBUTION, AND SALE OF WATER
Sec. 8512.0306.  DEVELOPMENT, GENERATION, DISTRIBUTION,
AND SALE OF WATER POWER AND ELECTRIC
Sec. 8512.0307.  PREVENTION OF DAMAGE TO PERSONS OR
Sec. 8512.0308.  FORESTATION AND REFORESTATION;
Sec. 8512.0309.  DEVELOPMENT OF NAVIGATION AND RELATED
Sec. 8512.0310.  DEVELOPMENT OF RECLAMATION AND
DRAINAGE OF CERTAIN LAND AND RELATED
Sec. 8512.0311.  WASTE MANAGEMENT
Sec. 8512.0312.  CONSERVATION AND DEVELOPMENT FOR
Sec. 8512.0313.  ACQUISITION OR OPERATION OF PROPERTY
Sec. 8512.0314.  EMINENT DOMAIN
Sec. 8512.0315.  SALE, LEASE, OR OTHER DISPOSITION OF
Sec. 8512.0316.  OVERFLOW OR INUNDATION OF PUBLIC
PROPERTY; RELOCATION OF FACILITIES
Sec. 8512.0317.  CONSTRUCTION, MAINTENANCE, AND
Sec. 8512.0318.  GENERAL CONTRACT POWERS
Sec. 8512.0319.  JOINT PROJECTS RELATED TO PROPERTY
Sec. 8512.0320.  STATE SUPERVISION AND APPROVAL
Sec. 8512.0321.  ADDITIONAL POWERS RELATING TO
CONTRACTS, RULES, AND REGULATIONS
Sec. 8512.0322.  PUBLIC USE OF AUTHORITY'S SURPLUS LAND
Sec. 8512.0323.  EFFECT OF CHAPTER ON WATER RIGHTS AND
Sec. 8512.0324.  APPLICABILITY OF CERTAIN STATUTES
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 8512.0401.  DISBURSEMENT OF MONEY
Sec. 8512.0402.  ACCOUNTS, CONTRACTS, AND OTHER
Sec. 8512.0403.  FILING OF AUDIT REPORT
Sec. 8512.0404.  ASSET MANAGEMENT PLAN
Sec. 8512.0405.  RATES AND OTHER CHARGES
Sec. 8512.0406.  USE OF EXCESS REVENUE
Sec. 8512.0407.  PAYMENTS UNDER AGREEMENTS FOR USE OR
Sec. 8512.0408.  TAX, ASSESSMENT, OR PLEDGE OF CREDIT
OF STATE NOT AUTHORIZED BY CHAPTER
SUBCHAPTER E.  BORROWED MONEY AND GRANTS
Sec. 8512.0501.  LOANS AND GRANTS
Sec. 8512.0502.  STATE PLEDGE REGARDING RIGHTS AND
Sec. 8512.0503.  OBLIGATION PAYABLE FROM REVENUE
Sec. 8512.0504.  POWER TO ISSUE BONDS
Sec. 8512.0505.  TERMS OF ISSUANCE
Sec. 8512.0506.  DEPOSIT OF PROCEEDS
Sec. 8512.0507.  RESOLUTION PROVISIONS
Sec. 8512.0508.  DEFAULT PROCEDURES
Sec. 8512.0510.  TEMPORARY BONDS
Sec. 8512.0511.  REFUNDING BONDS
Sec. 8512.0512.  POWER OF AUTHORITY TO PURCHASE BONDS
Sec. 8512.0513.  BONDS EXEMPT FROM TAXATION
CHAPTER 8512.  GUADALUPE-BLANCO RIVER AUTHORITY
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 8512.0101.  DEFINITIONS.  In this chapter:
(1)  "Authority" means the Guadalupe-Blanco River
(2)  "Board" means the authority's board of directors.
(3)  "Bond" means a bond or note.
(4)  "Commission" means the Texas Commission on
(5)  "Director" means a board member.  (Acts 43rd Leg.,
1st C.S., Ch. 75, Secs. 1 (part), 4(a) (part), 11 (part); New.)
Sec. 8512.0102.  CREATION AND NATURE OF AUTHORITY.  (a) The
authority is a conservation and reclamation district.
(b)  The authority's creation is essential to the
accomplishment of the purposes of Section 59, Article XVI, Texas
Constitution.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 1 (part).)
Sec. 8512.0103.  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, 2031, and every 12th year after that year.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 1A(a) (part).)
Sec. 8512.0104.  TERRITORY.  (a)  The authority is composed
of the territory described by Subsection (b) as that territory may
(1)  Subchapter J, Chapter 49, Water Code; or
(b)  The authority's territory consists of that part of this
state included in Caldwell, Calhoun, Comal, DeWitt, Guadalupe,
Gonzales, Hays, Kendall, Refugio, and Victoria Counties. (Acts 43rd
Leg., 1st C.S., Ch. 75, Sec. 1 (part); New.)
Sec. 8512.0105.  LIBERAL CONSTRUCTION OF CHAPTER.  This
chapter shall be liberally construed to effectuate the chapter's
purposes.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 18.)
SUBCHAPTER B.  BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS
Sec. 8512.0201.  NATURE OF BOARD.  The board is a state board
of a state agency as contemplated by Section 30a, Article XVI, Texas
Constitution.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a) (part).)
Sec. 8512.0202.  MEMBERSHIP OF BOARD.  (a)  The board
consists of nine directors appointed by the governor with the
advice and consent of the senate from a list of nominations provided
to the governor by the commission.
(1)  be a freehold property tax payer of this state; and
(2)  reside in one of the counties included in the
(c)  Only one director may be appointed from any county.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a) (part).)
Sec. 8512.0203.  TERMS.  Directors serve staggered six-year
terms, with three directors' terms expiring February 1 of each
odd-numbered year.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 4(a)
Sec. 8512.0204.  REMOVAL.  The governor may remove a
director for inefficiency, neglect of duty, or misconduct in
(1)  at least 10 days' written notice of the charge
(2)  an opportunity for the director to be heard in
person or by counsel at a public hearing.  (Acts 43rd Leg., 1st
C.S., Ch. 75, Sec. 4(a) (part).)
Sec. 8512.0205.  VACANCY.  The governor shall fill a vacancy
on the board for the unexpired term.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0206.  VOTING REQUIREMENT.  (a) Except as provided
by this chapter or the bylaws, the board may take action by the
affirmative vote of a majority of the directors present at a
(b)  The following are valid only if authorized or ratified
by the affirmative vote of at least five directors:
(1)  a contract that involves an amount greater than
$100,000 or has a duration of more than one year;
(2)  a bond or other evidence of indebtedness; or
(3)  an amendment of the bylaws.  (Acts 43rd Leg., 1st
C.S., Ch. 75, Sec. 4(b) (part).)
Sec. 8512.0207.  OFFICERS, AGENTS, AND EMPLOYEES.  (a)  The
governor shall designate a director as the board's presiding
officer, who serves at the will of the governor.
(b)  The board shall select a secretary, a general manager,
(c)  The secretary shall keep accurate and complete records
(d)  Until the board selects a secretary, or if the secretary
is absent or unable to act, the board shall select a secretary pro
(e)  The general manager is the authority's chief executive
(f)  The secretary, secretary pro tem, general manager, and
treasurer have the powers and duties, hold office for the term, and
are subject to removal in the manner provided by the bylaws.
(g)  The board shall set the compensation of the secretary,
secretary pro tem, general manager, and treasurer.
(h)  The board may appoint other officers, agents, and
employees, set their compensation and term of office, prescribe
their duties and the method by  which they may be removed, and
delegate to them any of the board's powers and duties as the board
considers proper.  (Acts 43rd Leg., 1st C.S., Ch. 75, Secs. 2(u),
Sec. 8512.0208.  SURETY BONDS.  (a)  The general manager, the
treasurer, and any other authority officer, agent, or employee who
is charged with the collection, custody, or payment of authority
money shall give bond conditioned on:
(1)  the faithful performance of the person's duties;
(2)  an accounting for all authority money and property
coming into the person's possession.
(b)  The bond must be in a form and amount and with a surety
company approved by the board that is authorized to do business in
(c)  The authority shall pay the premium on the bond and
charge the premium as an operating expense.  (Acts 43rd Leg., 1st
Sec. 8512.0209.  AUTHORITY'S DOMICILE AND OFFICE.  (a) The
authority's domicile is in the city of New Braunfels, Comal County.
(b)  The authority shall maintain an office in the city of
(c)  The general manager is in charge of the authority's
office.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 7 (part).)
Sec. 8512.0210.  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
board meeting until the person completes a training program that
(b)  The training program must provide the person with
(1)  the law governing the authority's operations;
(2)  the authority's programs, functions, rules, and
(3)  the results of the authority's most recent formal
(A)  laws relating to open meetings, public
information, administrative procedure, and the disclosure of
(B)  other laws applicable to members of a river
authority's governing body in performing their duties; and
(5)  any applicable ethics policies adopted by the
authority or the Texas Ethics Commission.
(c)  A person 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 general manager shall create a training manual that
includes the information required by Subsection (b).  The general
manager shall distribute a copy of the training manual annually to
each director. Each director shall sign and submit to the general
manager a statement acknowledging that the director has received
and reviewed the training manual.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0211.  SEPARATION OF POLICYMAKING AND MANAGEMENT
FUNCTIONS.  The board shall develop and implement policies that
clearly separate the board's policymaking responsibilities and the
general manager's and staff's management responsibilities.  (Acts
43rd Leg., 1st C.S., Ch. 75, Sec. 5A.)
Sec. 8512.0212.  COMPLAINTS.  (a) The authority shall
maintain a system to promptly and efficiently act on complaints
(b)  The authority shall maintain information about the
parties to and subject matter of the complaint, a summary of the
results of the review or investigation of the complaint, and the
(c)  The authority shall periodically notify the parties to
the complaint of the complaint's status until final disposition.
(d)  The authority shall make information available
describing the authority's procedures for complaint investigation
and resolution.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 25.)
Sec. 8512.0213.  ALTERNATIVE DISPUTE RESOLUTION PROCEDURES.
(a)  The board shall develop a policy to encourage the use of
appropriate alternative dispute resolution procedures under
Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the authority's jurisdiction.
(b)  The authority's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
(1)  coordinate the implementation of the policy
(2)  provide training as needed to implement the
procedures for alternative dispute resolution; and
(3)  collect data concerning the effectiveness of those
procedures.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 23.)
Sec. 8512.0214.  PUBLIC TESTIMONY.  (a)  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 authority's jurisdiction.
(b)  At each regular board meeting, the board shall include
public testimony as a meeting agenda item and allow members of the
public to comment on other agenda items and other matters under the
authority's jurisdiction.  The board may not deliberate on or
decide a matter not included in the meeting agenda, except that the
board may discuss including the matter on the agenda for a
subsequent meeting.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 24.)
Sec. 8512.0215.  SEAL.  The authority may adopt and use a
corporate seal.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(r).)
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 8512.0301.  GENERAL POWERS.  The authority has:
(1)  the powers of government and the authority to
exercise the rights, privileges, and functions specified by this
(2)  all powers, rights, privileges, and functions
conferred by general law on any district, other than a groundwater
conservation district, created under Section 59, Article XVI, Texas
Constitution, except as expressly limited by this chapter.  (Acts
43rd Leg., 1st C.S., Ch. 75, Secs. 1 (part), 2 (part).)
Sec. 8512.0302.  POWERS RELATED TO WATER OF RIVERS AND
(1)  control, store, and preserve, in or adjoining the
authority's boundaries, the water of any rivers and streams,
including the Guadalupe and Blanco Rivers and their tributaries,
(2)  use, distribute, and sell the water described by
Subdivision (1), in the authority, for all useful purposes.  (Acts
43rd Leg., 1st C.S., Ch. 75, Sec. 2(a).)
Sec. 8512.0303.  POWERS RELATED TO GROUNDWATER.  The
(1)  conserve, preserve, and develop groundwater in the
authority, subject to any applicable regulation by this state or
any political subdivision, for all useful purposes; and
(2)  use, distribute, and sell groundwater, in the
authority, for all useful purposes.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0304.  ACQUISITION OF WATER, WATER SUPPLY
FACILITIES, AND CONSERVATION STORAGE CAPACITY.  The authority may
acquire water, water supply facilities, and conservation storage
capacity inside or outside the authority from any person.  (Acts
43rd Leg., 1st C.S., Ch. 75, Sec. 2(c).)
Sec. 8512.0305.  USE, DISTRIBUTION, AND SALE OF WATER
OUTSIDE AUTHORITY.  (a) The authority may use, distribute, and
sell, outside the authority, any water the authority controls,
stores, preserves, conserves, develops, or acquires if the board
determines that adequate provision can be made to continue to serve
the water requirements inside the authority.
(b)  Notwithstanding Subsection (a), the authority may not
enter into any agreement that contemplates or results in the
removal from the watershed of the Guadalupe and Blanco Rivers and
their tributaries of any surface water of the authority necessary
to supply the reasonably foreseeable future water requirements for
municipal uses inside the watershed during the next 50 years,
except on a temporary, interim basis.  (Acts 43rd Leg., 1st C.S.,
Sec. 8512.0306.  DEVELOPMENT, GENERATION, DISTRIBUTION, AND
SALE OF WATER POWER AND ELECTRIC ENERGY.  The authority may:
(1)  develop and generate water power and electric
energy inside the authority; and
(2)  distribute and sell water power and electric
energy inside or outside the authority.  (Acts 43rd Leg., 1st C.S.,
Sec. 8512.0307.  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 Guadalupe and
Blanco Rivers and their tributaries.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0308.  FORESTATION AND REFORESTATION; PREVENTION
OF SOIL EROSION AND FLOODS.  In the watershed of the Guadalupe and
Blanco Rivers and their tributaries, the authority may:
(1)  forest, reforest, or aid in foresting or
(2)  prevent or aid in the prevention of soil erosion
and floods.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(g).)
Sec. 8512.0309.  DEVELOPMENT OF NAVIGATION AND RELATED
FACILITIES.  The authority may develop the navigation of inland
water in the authority and any facility in aid of that navigation.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(h).)
Sec. 8512.0310.  DEVELOPMENT OF RECLAMATION AND DRAINAGE OF
CERTAIN LAND AND RELATED FACILITIES.  The authority may develop the
reclamation and drainage of overflowed land and other land needing
drainage, other than coastal wetlands or inland marshes, in the
authority and any facility in aid of that reclamation and drainage.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(i).)
Sec. 8512.0311.  WASTE MANAGEMENT.  (a)  The authority may
develop the collection, transportation, treatment, disposal, and
handling of any waste, as that term is defined by general law, and
any facility in aid of those activities.
(b)  The authority may construct or acquire sanitary sewer
facilities for the collection, treatment, and disposal of sewage in
a municipality's boundaries only with the municipality's consent.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(j).)
Sec. 8512.0312.  CONSERVATION AND DEVELOPMENT FOR
RECREATION.  The authority may conserve and develop water and land
for recreational purposes and any facility in aid of those
purposes.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(k).)
Sec. 8512.0313.  ACQUISITION OR OPERATION OF PROPERTY.  (a)
The authority may acquire, maintain, use, and operate property of
any kind or any property interest, inside or outside the authority,
necessary or convenient to the exercise of the powers, rights,
privileges, and functions conferred on the authority by this
(b)  The authority may acquire property or a property
interest as provided by Subsection (a) by purchase, lease, gift, or
any other manner, other than by the exercise of the power of eminent
domain.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(l).)
Sec. 8512.0314.  EMINENT DOMAIN.  (a)  The authority may
acquire by the exercise of the power of eminent domain property of
any kind or a property interest inside or outside the authority that
is necessary or convenient to the exercise of the powers, rights,
privileges, and functions conferred on the authority by this
(b)  The authority must exercise the power of eminent domain
(1)  Chapter 21, Property Code; or
(2)  the statutes relating to the exercise of the power
of eminent domain by districts organized under general law under
Section 59, Article XVI, Texas Constitution.
(c)  The authority may not exercise the power of eminent
domain to acquire property or a property interest that is:
(1)  located outside the authority; and
(d)  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.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec.
Sec. 8512.0315.  SALE, LEASE, OR OTHER DISPOSITION OF
PROPERTY.  Subject to the provisions of this chapter, the authority
may sell, lease, or otherwise dispose of property of any kind or any
(1)  that is not necessary authority business; or
(2)  the sale, lease, or disposition of which, in the
board's judgment, is necessary or convenient to the exercise of the
powers, rights, privileges, and functions conferred on the
authority by this chapter or general law.  (Acts 43rd Leg., 1st
Sec. 8512.0316.  OVERFLOW OR INUNDATION OF PUBLIC PROPERTY;
RELOCATION OF FACILITIES.  (a) In this section, "sole expense"
means the actual cost of relocating, raising, lowering, rerouting,
or changing the grade of or altering the construction of a facility
to provide comparable replacement without enhancement of the
facility, after deducting the net salvage value derived from the
(b)  The authority may overflow and inundate any public
property and require the relocation of a road, pipeline,
transmission line, railroad, cemetery, or highway in the manner and
to the extent permitted to a district organized under general law
under Section 59, Article XVI, Texas Constitution.
(c)  If in the exercise of the power of eminent domain or any
other power the authority requires relocating, raising, lowering,
rerouting, or changing the grade of or altering the construction of
any railroad, transmission line, conduit, pole, property,
facility, or pipeline, the action shall be the authority's sole
expense.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 2(o).)
Sec. 8512.0317.  CONSTRUCTION, MAINTENANCE, AND OPERATION
OF FACILITIES.  The authority may construct, extend, improve,
maintain, reconstruct, and use and operate facilities of any kind
necessary or convenient to the exercise of the authority's powers,
rights, privileges, and functions.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0318.  GENERAL CONTRACT POWERS.  (a)  The
authority may enter into 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 or general law, including a contract with any person as the
board considers necessary or proper for, or in connection with, any
corporate purpose to provide for the construction, acquisition,
ownership, financing, operation, maintenance, sale, leasing to or
from, or other use or disposition of any facility authorized to be
developed, preserved, conserved, acquired, or constructed under
(b)  The power to enter into a contract regarding a facility
under Subsection (a) includes the power to enter into a contract
(1)  any improvements, structures, facilities,
equipment, and other property of any kind in connection with the
(2)  any land, leaseholds, and easements; and
(3)  any interests in property described by this
(c)  A contract entered into or instrument executed under
this section may be for the term and contain the provisions the
board determines to be in the authority's best interests.  (Acts
43rd Leg., 1st C.S., Ch. 75, Sec. 2(v).)
Sec. 8512.0319.  JOINT PROJECTS RELATED TO PROPERTY.  The
(1)  authorize any person to participate with the
authority in the joint construction, acquisition, ownership,
financing, operation, and maintenance of improvements, structures,
facilities, equipment, and any other property in connection with
the subject of the authorization, and all land, leaseholds,
easements, and interests in the property that the board determines
to be necessary or proper for, or in connection with, any corporate
(2)  allow a joint participant to receive the portion
of the revenue derived from the property that the board considers
just, equitable, and proper.  (Acts 43rd Leg., 1st C.S., Ch. 75,
Sec. 8512.0320.  STATE SUPERVISION AND APPROVAL.  The
commission shall consider the adequacy of, and approve or refuse to
approve, any flood control or conservation improvement plan that:
(1)  the authority devises to achieve a plan or purpose
for which the authority was created; and
(2)  contemplates an improvement that the commission
would supervise under general law.  (Acts 43rd Leg., 1st C.S., Ch.
Sec. 8512.0321.  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 authority considers desirable or as
requested by this state, the United States, or any corporation or
agency created, designated, or established by this state or the
United States, that may assist in financing the project.  (Acts 43rd
Leg., 1st C.S., Ch. 75, Sec. 13.)
Sec. 8512.0322.  PUBLIC USE OF AUTHORITY'S SURPLUS LAND.
The authority may not prevent free public use of the authority's
surplus land for recreational purposes, hunting, or fishing except
to the extent to which, in the board's opinion, the use would
interfere with the proper conduct of the business.  (Acts 43rd Leg.,
Sec. 8512.0323.  EFFECT OF CHAPTER ON WATER RIGHTS AND
GROUNDWATER REGULATION.  (a) This chapter does not confer any water
rights on the authority or set any priority of rights.  The
authority must obtain its water rights by application to and permit
from the commission as provided by general statute.
(b)  This chapter does not authorize the authority to
regulate the withdrawal of groundwater.  (Acts 43rd Leg., 1st C.S.,
Sec. 8512.0324.  APPLICABILITY OF CERTAIN STATUTES.  The
rights, powers, privileges, and functions granted to the authority
under this chapter, and the authority itself, are expressly subject
to Chapters 5, 7, 11, 12, 17, 26, and 30, Water Code, and Chapter
366, Health and Safety Code.  (Acts 43rd Leg., 1st C.S., Ch. 75,
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec. 8512.0401.  DISBURSEMENT OF MONEY.  The authority may
disburse the authority's 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.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 6
Sec. 8512.0402.  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 an official authority office.
(c)  The contracts shall be open to public inspection at all
reasonable times.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 7
Sec. 8512.0403.  FILING 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.  (Acts 43rd Leg., 1st C.S.,
Sec. 8512.0404.  ASSET MANAGEMENT PLAN.  (a)  In this
section, "system" means a system for the:
(1)  provision of water to the public for human
(2)  collection and treatment of wastewater.
(b)  The authority shall adopt an asset management plan by:
(1)  preparing an asset inventory that identifies the
assets of each system and the asset's condition;
(2)  developing criteria to prioritize assets for
repair or replacement, including:
(A)  the date by which the asset will need to be
(B)  the importance of the asset in providing safe
drinking water and complying with regulatory standards;
(C)  the importance of the asset to the effective
(D)  other criteria the authority determines;
(3)  estimating asset repair and replacement costs;
(4)  identifying and evaluating potential financing
(5)  prioritizing systems that are not in compliance
with federal or state regulatory standards, including water quality
(c)  The authority shall review and revise the asset
management plan annually to account for regulatory changes and
(d)  The board shall approve the asset management plan
annually as part of its budgeting process.
(e)  The asset management plan's findings must be posted on
the authority's publicly accessible Internet website.  (Acts 43rd
Leg., 1st C.S., Ch. 75, Sec. 26.)
Sec. 8512.0405.  RATES AND OTHER CHARGES.  (a)  The board
shall impose rates and other charges for the sale or use of water,
water connections, power, electric energy, or other services the
authority sells, provides, or supplies.
(b)  The rates and other charges must be reasonable,
nondiscriminatory, and sufficient to provide revenue adequate to:
(1)  pay all expenses necessary to the operation,
maintenance, and replacement of and the making of additions to the
authority's properties and facilities;
(2)  pay the principal of, the interest on, and any
premium on all bonds issued under this chapter when they become due
(3)  pay all sinking fund or reserve fund payments
agreed to be made with respect to any of those bonds and payable out
of that revenue when and as they become due and payable;
(4)  fulfill the terms of any agreements made with the
holders of those bonds or with any person in their behalf; and
(5)  discharge all other lawful obligations of the
authority when they become due.
(c)  The rates and other charges may not exceed the amount
that may be necessary to fulfill the obligations imposed on the
authority by this chapter.  (Acts 43rd Leg., 1st C.S., Ch. 75, Secs.
9(a), (b), (c), (d), (e), (g) (part).)
Sec. 8512.0406.  USE OF EXCESS REVENUE.  If the authority
receives revenue in excess of that required for the purposes
specified by Sections 8512.0405(b)(1), (2), (3), and (5), the board
(1)  use the excess revenue to:
(A)  establish a reasonable depreciation and
(B)  retire bonds issued under this chapter by
purchase and cancellation or redemption; or
(2)  apply the excess revenue to any corporate purpose.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(f).)
Sec. 8512.0407.  PAYMENTS UNDER AGREEMENTS FOR USE OR SALE
OF PROPERTY.  (a)  If the authority enters into an agreement to
lease, sell, or otherwise dispose of any property or facilities to
any person, the person is subject to the regulations and control of
rates or other charges by this state as may be provided by agreement
(b)  Notwithstanding Subsection (a), the board shall set
payments under a lease or other contract or agreement for the use or
sale of any property so that the payments, together with any other
pledged revenue, will be sufficient to:
(1)  pay the principal of, the interest on, and any
premium on all bonds to which the payments are pledged when they
(2)  pay all sinking fund or reserve fund payments
agreed to be made with respect to any bonds described by Subdivision
(1), and payable out of those payments, when they become due and
(3)  fulfill the terms of any agreement made with the
holders of bonds described by Subdivision (1) or any person in their
(4)  discharge all other obligations of the authority
in connection with bonds described by Subdivision (1) when they
become due.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(h).)
Sec. 8512.0408.  TAX, ASSESSMENT, OR PLEDGE OF CREDIT OF
STATE NOT AUTHORIZED BY CHAPTER.  This chapter does not authorize
(1)  impose a tax or assessment;
(2)  create any debt payable out of taxes or
(3)  pledge this state's credit.  (Acts 43rd Leg., 1st
SUBCHAPTER E.  BORROWED MONEY AND GRANTS
Sec. 8512.0501.  LOANS AND GRANTS.  The authority may:
(1)  borrow money for the authority's corporate
(2)  borrow money or accept a grant from any person,
including this state, the United States, or a corporation or agency
created or designated by this state or the United States;
(3)  in connection with a loan or grant described by
Subdivision (2), enter into any agreement this state, the United
States, or the corporation or agency requires;
(4)  make and issue the authority's bonds for money
borrowed, in the manner and to the extent provided by this chapter;
(5)  refund or refinance any outstanding bonds and make
and issue the authority's bonds for those purposes in the manner and
to the extent provided by this chapter.  (Acts 43rd Leg., 1st C.S.,
Sec. 8512.0502.  STATE PLEDGE REGARDING RIGHTS AND REMEDIES
OF BONDHOLDERS.  This chapter does not deprive this state of its
power to regulate and control rates or other charges to be imposed
for the use of water, water connections, power, electric energy, or
another service.  This state pledges to and agrees with the
purchasers and successive holders of the bonds issued under this
chapter that this state will not limit or alter the power this
chapter gives the authority to impose rates and other charges that
will produce revenue sufficient to pay the items specified by
Section 8512.0405(b) or in any way impair the rights or remedies of
the bondholders, or of any person in their behalf, until the
following are fully discharged:
(2)  the interest on the bonds;
(4)  interest on unpaid installments of interest;
(5)  all costs and expenses in connection with any
action or proceeding by or on behalf of the bondholders; and
(6)  all other authority obligations in connection with
the bonds.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 9(g) (part).)
Sec. 8512.0503.  OBLIGATION PAYABLE FROM REVENUE.  An
authority debt, liability, or obligation for the payment of money,
however entered into or incurred and whether arising from an
express or implied contract or otherwise, is payable:
(1)  out of the revenue the authority receives with
respect to the authority's properties, subject to any prior lien on
the revenue conferred by any resolution previously adopted as
provided by this chapter authorizing the issuance of bonds; or
(2)  if the board so determines, out of the proceeds of
sale by the authority of bonds payable solely from revenue
described by Subdivision (1).  (Acts 43rd Leg., 1st C.S., Ch. 75,
Sec. 8512.0504.  POWER TO ISSUE BONDS.  (a)  The authority
may issue bonds for any corporate purpose.
(b)  The bonds must be authorized by a board resolution.
(Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 11 (part).)
Sec. 8512.0505.  TERMS OF ISSUANCE.  Authority bonds may be:
(2)  issued on terms the board determines in exchange
for property of any kind, or any property interest, that the board
considers necessary or convenient for the corporate purpose for
(3)  issued in exchange for like principal amounts of
other matured or unmatured authority obligations.  (Acts 43rd Leg.,
1st C.S., Ch. 75, Sec. 11 (part).)
Sec. 8512.0506.  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.  (Acts 43rd
Leg., 1st C.S., Ch. 75, Sec. 11 (part).)
Sec. 8512.0507.  RESOLUTION PROVISIONS.  (a)  A resolution
authorizing bonds may contain provisions:
(1)  reserving the right to redeem the bonds or
requiring the redemption of the bonds, at the time, in the amount,
and at the price, not exceeding 105 percent of the principal amount
of the bonds, plus accrued interest, as may be provided;
(2)  providing for the setting aside of sinking funds
or reserve funds and the regulation and disposition of those funds;
(3)  pledging, to secure the payment of the principal
of and interest on the bonds and of the sinking fund or reserve fund
payments agreed to be made with respect to the bonds:
(A)  all or any part of the gross or net revenue
subsequently received by the authority with respect to the property
to be acquired or constructed with the bonds or the proceeds of the
(B)  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 to be issued, or the proceeds of the bonds, may
(5)  agreeing to impose rates and other charges
sufficient to produce revenue adequate to pay the items specified
by Section 8512.0405(b) and prescribing the use and disposition of
(6)  prescribing limitations on the issuance of
additional bonds and subordinate lien bonds and on the agreements
that may be made with the purchasers and successive holders of those
(7)  with regard to 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 loss or damage or loss of use
and occupancy resulting from specified risks;
(8)  setting the procedure, if any, 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;
(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 or all 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
(10)  approved by the board that are not inconsistent
(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.  (Acts 43rd Leg., 1st C.S., Ch. 75, Sec. 11
Sec. 8512.0508.  DEFAULT PROCEDURES.  (a)  This section
(1)  the payment of the principal of bonds as they
become due and payable, whether at maturity, by call for
(2)  the payment of the interest on bonds as the
interest becomes due and payable; 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 by 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
(1)  enforce by mandamus or other action or proceeding
at law or in equity all rights of the bondholders;
(2)  bring an action on the bonds or the related
(3)  require by action in equity the authority to
account as if it were the trustee of an express trust for the
(4)  enjoin by action in equity 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 satisfied, 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 an 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
(2)  operate and maintain the properties;
(3)  impose rates and other charges sufficient to
provide revenue adequate to pay the items specified by Section
8512.0405(b) and the costs and disbursements of the action or
(4)  apply the revenue in accordance with this chapter
and the resolution authorizing the bonds.
(e)  In an 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
(f)  The courts of Comal County have jurisdiction of an
action or proceeding by a trustee on behalf of the bondholders and
of all property involved in the 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.  (Acts 43rd Leg., 1st C.S., Ch. 75, Secs. 11(j)(1),
Sec. 8512.0509.  INTERIM BONDS.  (a)  Before issuing
definitive bonds, the authority may make and issue interim bonds.
(b)  The interim bonds issued shall be taken up with the
proceeds of the definitive bonds, or the definitive bonds may be
issued and delivered in exchange for the interim bonds.
(c)  After an exchange of definitive bonds for interim bonds,
the authority shall file certificates with the comptroller as to
the exchange and cancellation, and the