CHAPTER 62. ARTICLE XVI, SECTION 59, NAVIGATION DISTRICTS

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WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 62. ARTICLE XVI, SECTION 59, NAVIGATION DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 62.001. DEFINITIONS. As used in this chapter:

(1) "District" means a navigation district operating under the

provisions of Article XVI, Section 59, of the Texas Constitution.

(2) "Commission" means the navigation and canal commission.

(3) "Commissioner" means a navigation and canal commissioner.

(4) "Board" means the navigation board.

(5) "County of jurisdiction" means the county in which the

district or the greater amount of acreage of the district is

located.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 62.021. CREATION OF DISTRICT. A navigation district may be

created in the manner prescribed by this subchapter under Article

XVI, Section 59, of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.022. COMPOSITION. A district may include within its

boundaries all or part of villages, towns, cities, road

districts, drainage districts, irrigation districts, levee

districts, other improvement districts, and municipal

corporations of any kind but may not include the territory of

more than three counties or parts of three counties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.023. PETITION. (a) Any person may present a petition

to the commissioners court in the county of jurisdiction, at a

regular or special session, requesting the creation of a

district.

(b) The petition shall be signed by 25 of the property taxpaying

electors who reside inside the boundaries of the proposed

district. If there are less than 75 property taxpaying electors

who reside inside the boundaries of the proposed district, the

petition shall be signed by one-third of them.

(1) a request that the district be created;

(2) the boundaries of the district accompanied by a map;

(3) the general nature of the proposed improvements;

(4) an estimate of the probable cost of the improvements; and

(5) the name of the district, which shall include the name of

the county.

(d) The petition shall be accompanied by an affidavit of the

petitioners' qualifications.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.024. DEPOSIT. At the time the petition is filed with

the commissioners court, the petitioner shall deposit $500 in

cash with the clerk of the commissioners court. The clerk shall

keep the deposit until after the result of the election to create

the district is declared and entered in the record by the

commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.025. DATE OF HEARING. (a) On presentation of the

petition, the commissioners court of the county of jurisdiction

shall set it for a hearing at the regular term of the

commissioners court or at a special session called for that

purpose. The hearing shall be held not less than 30 nor more than

60 days from the day the petition is presented.

(b) If the hearing is required by Section 62.026 of this code,

to be held by the navigation board, the commissioners court shall

set the hearing at the regular meeting place of the commissioners

court not less than 30 nor more than 60 days from the day the

petition is presented without reference to any term of the

commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.026. HEARING BEFORE THE BOARD. If the boundaries of a

proposed district include all or part of a city or cities acting

under special charter granted by the legislature, the hearing on

the petition shall be held before the board.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.027. NOTICE OF HEARING. (a) The commissioners court

shall order the clerk to post a copy of the petition together

with the order of the commissioners court in five public places

in the county, one of which shall be the courthouse door and four

of which shall be in different places inside the limits of the

proposed district. The notice shall be posted not less than 20

days before the time set for the hearing.

(b) If the district is composed of more than one county, a copy

of the petition together with the order shall be posted at the

courthouse door of each county in which any portion of the

proposed district is located, and four copies shall be posted at

four other places inside the included territory of each county.

notice and five cents a mile for each mile necessarily traveled

in posting the notices.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.028. HEARING ON PETITION. (a) The commissioners court

or the board has exclusive jurisdiction to hear and determine all

contests and objections and other matters relating to creating a

district and in all subsequent proceedings.

(b) Any person who has taxable property in the proposed district

or who may be affected by the creation of the district may appear

at the hearing and contest or support the creation of the

district, offer testimony for or against the boundaries, show

that the proposed improvements would or would not be of any

public utility and would or would not be practicable and

feasible, present evidence of the probable cost of the

improvements, or present any other matter relating to the

district.

hearing from day to day, and judgments or decisions rendered by

the commissioners court or the board are final except as

otherwise provided by this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.029. FINDINGS. (a) If the commissioners court or the

board finds that the improvements would be feasible and

practicable and would be a public benefit and utility and

approves the boundaries as set out in the petition, it shall

compute the amount of money necessary for the improvements and

all incidental expenses and shall determine whether to issue

bonds for the full amount or for a smaller amount in the first

instance.

(b) The commissioners court or the board shall specify:

(1) the amount of bonds to be issued;

(2) the length of time the bonds will run; and

(3) the rate of interest.

district shall be recorded in the minutes of the commissioners

court or the board.

(d) If the commissioners court or the board does not approve the

proposed boundaries of the district, it shall define the

boundaries it considers correct. Before any change is made in the

boundaries of the proposed district, notice shall be given and a

hearing held as provided in Sections 62.027 and 62.028 of this

code.

(e) If the commissioners court or the board finds that the

improvements are unnecessary and would not be practicable or

feasible and would not be a public benefit or utility, it shall

enter these findings in the minutes and shall dismiss the

petition at the cost of the petitioners. However, the dismissal

of a petition does not prevent or conclude the presentation of a

similar petition at a later date.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.030. ELECTION ORDER. (a) If the commissioners court or

the board finds in favor of the petitioners for the creation of

the district, the commissioners court of the county of

jurisdiction shall order an election to be held inside the

proposed district at the earliest legal time.

(b) The order of the court shall provide for submitting to the

electors residing in the proposed district the question of

whether or not the district will be created and whether or not

proposed bonds will be issued and a tax levied sufficient to pay

the interest and provide a sinking fund sufficient to redeem the

bonds at maturity.

(1) the amount of bonds to be issued;

(2) the length of time the bonds will run; and

(3) the rate of interest.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.031. NOTICE OF ELECTION. (a) The clerk of the

commissioners court shall prepare notice of the election and

shall post the notice for 30 days before the day set for the

election.

(b) The notice shall be posted in the same places specified in

Section 62.027 of this code.

(1) the time and place of holding the election;

(2) the proposition to be voted on; and

(3) the purpose for which the bonds are to be issued and the

amount of the bonds.

(d) The notice shall contain a copy of the order of the court

ordering the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.032. BALLOT. The ballot shall be printed to provide for

voting for or against the proposition: "The creation of the

navigation district and the issuance of bonds and levy of a tax

for the payment of the bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.033. CONDUCT OF ELECTION. (a) The commissioners court

shall issue an order creating and defining the voting precincts

in the proposed district and shall name polling places within the

precincts. In designating the polling places, the commissioners

court shall take into consideration the convenience of the voters

in the proposed district.

(b) The commissioners court shall select and appoint the judges

and other necessary officers of election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.034. CANVASS OF RETURNS. (a) Immediately after the

election, the election officers shall make returns of the result

and return the ballot boxes to the clerk of the commissioners

court of jurisdiction.

(b) The clerk shall deliver the boxes and the returns of the

election to the commissioners court of jurisdiction at its next

regular or special session.

returns of the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.035. DECLARATION OF RESULT. If a majority of the votes

favor creating the district, issuing bonds, and levying a tax,

the commissioners court shall declare the result and enter it in

the minutes of the commissioners court as follows:

"Commissioners court of ____________________ County, Texas.

__________ term A.D. __________, in the matter of the petition of

__________ and __________ others requesting the creation of a

navigation district, issuance of bonds, and levy of a tax in the

petition described and designated by the name of

____________________ Navigation District. Be it known that at an

election called for that purpose in the district, held on the

______ day of ______ A.D. ______, a majority of the electors

voting voted in favor of the creation of the navigation district,

the issuance of bonds, and the levy of a tax. Now, therefore, it

is considered and ordered by the commissioners court that the

navigation district, be and the same is hereby established by the

name of __________ Navigation District, and that bonds of the

district in the amount of $______ be issued, and a tax of ______

cents on the $100 valuation, or so much thereof as may be

necessary to be levied upon all property within the navigation

district, whether real, personal, mixed, or otherwise, sufficient

in amount to pay the interest on the bonds and provide a sinking

fund to redeem that at maturity, and that if the tax shall at any

time become insufficient for these purposes it shall be increased

until it is sufficient. The metes and bounds of the district are

as follows: (Give metes and bounds)."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.036. EXPENSES. (a) If the result of the election

favors the creation of the district, the clerk shall return the

$500 deposit required by Section 62.024 of this code to the

signers of the original petition, their agents or their attorney.

(b) If the result of the election is against the creation of the

district, the clerk shall pay out of the $500 deposit on vouchers

signed by the county judge, all costs and expenses relating to

the proposed district up to and including the election. The

balance, if any, of the $500 shall be returned to the signers of

the original petition, their agents, or their attorney.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 62.061. NAVIGATION BOARD. (a) The navigation board shall

include the members of the commissioners court and the mayor and

aldermen or commissioners of the included city or cities acting

under special charter granted by the legislature. If there is

only one city or part of one city acting under special charter

granted by the legislature inside the proposed district and if

the charter of the city at any time authorizes the city council

or city board of commissioners to be greater in number than the

members of the commissioners court, the number of aldermen or

city commissioners who are entitled to sit and vote as members of

the board along with the mayor will be limited to that number

which equals the number of members of the commissioners court.

The aldermen or city commissioners entitled to act as members of

the board shall be determined by the members of the city council

or city board of commissioners among themselves.

(b) The county judge, and in his absence the mayor, shall

preside at meetings of the board and each member of the board,

including the presiding officer, is entitled to a vote.

and action of a majority of the quorum shall control.

(d) The county clerk shall enter the proceedings of the board in

a book kept for that purpose, and the book shall be available for

public inspection.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.062. APPOINTMENT OF INITIAL COMMISSIONERS. (a) After

the creation of the district, the commissioners court or board

shall appoint three navigation and canal commissioners who shall

compose the navigation and canal commission.

(b) After the initial commissioners on the navigation and canal

commission complete their terms, subsequent commissioners shall

be elected.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.063. ELECTION OF COMMISSIONERS. (a) Commissioners

shall be elected on the second Saturday in July of each

odd-numbered year at an election ordered by the commission.

(b) The secretary of the commission shall give notice of the

election by posting at least three copies of the notice at three

public places inside the district or by publishing the notice for

20 days before the election in a newspaper with general

circulation in the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.0631. APPOINTMENT OF COMMISSIONERS. (a) Instead of

electing commissioners as provided in Section 62.063 of this

code, the commissioners court or board may appoint three

navigation and canal commissioners to serve on the commission.

(b) The commissioners shall hold office for a term of two years

and until their successors are appointed and have qualified.

the commissioners court or the board for malfeasance or

nonfeasance in office.

(d) Successors to members of the commission shall be appointed

by a majority vote of the commissioners court or the board.

Added by Acts 1971, 62nd Leg., p. 1771, ch. 518, Sec. 18, eff.

May 31, 1971.

Sec. 62.064. QUALIFICATIONS OF COMMISSIONERS. Each person who

is appointed or elected commissioner shall be a resident of the

proposed navigation district and shall be an elector of the

county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.065. TERM OF OFFICE. Commissioners shall hold office

for staggered terms of six years and until their successors are

elected and have qualified.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.066. VACANCIES. (a) A vacancy on the commission shall

be filled by the remaining members of the commission.

(b) If two or more vacancies on the commission occur at the same

time, a special election may be called on petition signed by 50

electors.

posting notice for at least 20 days before the election.

(d) The petition for the election shall include the names of the

judges and clerks of the election, and the judges and clerks

shall jointly canvass the returns, declare the result, and issue

certificates of election to the successful candidates.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.067. REMOVAL FROM OFFICE. (a) A commissioner may be

removed from office for malfeasance or nonfeasance in office by

unanimous vote of the commissioners court or the board after a

hearing held according to law.

(b) Appeal from a judgment of removal may be taken to a district

court of the county in which the commissioner resides. The court

shall try the case de novo.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.068. OATH OF COMMISSIONERS. (a) Before each

commissioner begins to perform his duties, he shall take and

subscribe before the county judge of the county of jurisdiction

an oath to discharge faithfully the duties of his office without

favor or partiality and to render a true account of his

activities to the commissioners court of the county of

jurisdiction or the board whenever required to do so.

(b) The oath shall be filed by the clerk of the commissioners

court and preserved as part of the records of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.069. BOND OF COMMISSIONERS. Before a commissioner

begins to perform his duties, he shall execute a good and

sufficient bond for $1,000, payable to the county judge of the

county of jurisdiction for the use and benefit of the district

and conditioned on the faithful performance of his duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.070. COMPENSATION OF COMMISSIONERS. Each commissioner

shall receive for his services the compensation determined by the

commissioners court of the county of jurisdiction.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.071. ORGANIZATION OF COMMISSION. (a) The commission

shall organize by electing one of the members chairman and one

secretary.

(b) Two of the commissioners constitute a quorum. A concurrence

of two is sufficient in all matters relating to the business of

the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.072. TWO-COUNTY DISTRICTS; APPOINTMENT OF COMMISSION.

(a) In a district composed of land in two or more counties, the

commissioners court of the county of jurisdiction by a majority

vote shall appoint one commissioner. The commissioners court of

the other county included in whole or in part within the district

shall appoint by a majority vote a second commissioner. The two

commissioners courts shall appoint the third commissioner at a

joint meeting of the two commissioners courts called and presided

over by the county judge of the county of jurisdiction.

(b) Notice in writing of the joint meeting of commissioners

courts shall be given by mail or delivered in person at least two

days before the day set for the meeting.

the commissioners courts of both counties shall be entitled to

one vote in appointing the third commissioner. A majority vote of

those present at the meeting shall be sufficient to make the

appointment.

(d) On the termination of the term of office of each

commissioner or in case of vacancy, a successor shall be

appointed by the same commissioners court which appointed the

commissioner whose place is being filled.

(e) Except for the matters expressly provided for in this

section, two-county districts are subject to all other provisions

of this subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.073. DISTRICT TREASURER. The county treasurer of the

county of jurisdiction shall be treasurer of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.074. TREASURER'S BOND. (a) The county treasurer shall

execute a good and sufficient bond, payable to the commissioners,

in an amount equal to twice the amount of funds he will hold at

any time as treasurer of the district. The commissioners shall

estimate the sum to be used as a basis for computing the amount

of the required bond. The bond shall be conditioned for the

faithful performance by the treasurer of his duties for the

district and must be approved by the commissioners.

(b) When any bonds are voted by the district, the county

treasurer, before receiving the proceeds from the sale of the

bonds, shall execute an additional good and sufficient bond,

payable to the commissioners, in an amount which is twice the

amount of bonds issued. This additional bond shall be conditioned

and approved in the same manner as the first but shall not be

required after the treasurer has disbursed the proceeds of the

bond issue.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.075. TREASURER'S COMPENSATION. The county treasurer

shall be allowed as compensation for his services as treasurer of

the district the amount determined by the commissioners. The

compensation may not exceed the percentage authorized by law for

his services as county treasurer.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.076. DISTRICT ENGINEER. (a) The commission may employ

a competent engineer who shall serve at the will of the

commission.

(b) The district engineer shall receive the compensation

determined by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.077. ASSISTANT ENGINEERS AND EMPLOYEES; COUNSEL;

SALARIES AND FEES. (a) The commission may employ assistant

engineers and other employees which may be necessary.

(b) The commission may employ counsel to represent the district

in the preparation of any contract, to conduct any proceedings in

or out of court, and to be the legal adviser of the commission on

such terms as may be agreed upon by the commission.

shall be determined by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.078. SUITS; JUDICIAL NOTICE. (a) A district

established under this chapter may, by and through the

commission, sue and be sued in all courts of this state in the

name of the district.

(b) All courts of this state shall take judicial notice of the

establishment of all districts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 62.101. PURPOSES OF DISTRICT. A district may be created

under this chapter to provide, in or adjacent to its boundaries,

for:

(1) the improvement, preservation, and conservation of inland

and coastal water for navigation;

(2) the control and distribution of storm water and floodwater

of rivers and streams in aid of navigation; and

(3) any other purposes necessary or incidental to the navigation

of inland and coastal water or in aid of these purposes, as

stated in Article XVI, Section 59, of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.102. DISTRICTS AS GOVERNMENTAL AGENCIES. All districts

created under this chapter shall be governmental agencies and

bodies politic and corporate with the powers of government and

with the authority to exercise the rights, privileges, and

functions which are essential to the accomplishment of those

purposes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.103. DUTIES OF COUNTY OFFICIALS. The powers and duties

conferred by this chapter on the county judge, members of the

commissioners court, the mayor and aldermen or commissioners of

cities, the county clerk, and other officers are made a part of

the legal duty of those officials. Unless otherwise provided in

this chapter, these persons shall exercise and perform these

powers and duties without additional compensation.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.104. DUTIES OF DISTRICT ENGINEER. It shall be the duty

of the district engineer:

(1) to make all necessary surveys, examinations, investigations,

maps, plans, and drawings with reference to proposed

improvements;

(2) to make estimates of the cost of proposed improvements;

(3) to supervise the work of improvement; and

(4) to perform all duties which may be required of him by the

commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.105. RIGHT-OF-WAY. The commission may by gift, grant,

purchase, or condemnation acquire the necessary right-of-way and

property of any kind for all necessary improvements contemplated

by this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.106. CONDEMNATION PROCEEDINGS. (a) The district may

exercise the power of eminent domain to condemn and acquire the

right-of-way over and through any and all public and private land

necessary:

(1) for the improvement of any river, bay, creek, or stream;

(2) for the construction and maintenance of any canal or

waterway; and

(3) for any and all purposes authorized by this chapter.

(b) Condemnation proceedings instituted under Subsection (a) of

this section shall be instituted under the direction of the

commission and in the name of the district. The assessment of

damages shall be in conformity with the laws of the State of

Texas for condemnation and acquisition of rights-of-way by

railroads.

commissioners shall have the effect of causing a suspension of

work by the commission in prosecuting the work of improvement in

all of its details.

(d) No right-of-way may be condemned through any part of an

incorporated city or town without the consent of the lawful

authorities of that city or town.

(e) A district created under this chapter may elect to take

advantage of the condemnation procedure provided in Subchapter F

of Chapter 51 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.107. ACQUISITION OF LAND. (a) Any district created

under this chapter may acquire by gift, purchase, or condemnation

and may own land adjacent or accessible to the navigable water

and ports developed by it which may be necessary or required for

any and all purposes incident to or necessary for the development

and operation of the navigable water or ports within the

district, or may be necessary or required for or in aid of the

development of industries on the land.

(b) The district may lease any part of the acquired land to any

individual or corporation and may charge for the lease reasonable

tolls, rents, fees, or other charges. The district may use the

proceeds both for the maintenance and operation of the business

of the district and for the purpose of making the district

self-supporting and financially solvent and returning the

construction costs of the improvements within a reasonable

period.

section and the operation and industrial development of ports and

waterways are a public purpose and a matter of public necessity.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.1071. ACQUISITION OF LAND, EQUIPMENT, OR IMPROVEMENTS IN

CERTAIN COUNTIES. (a) This section applies only to a district

that has a county of jurisdiction with a population of more than

2.8 million.

(b) A district may acquire, by any means except by condemnation,

and own land, equipment, or improvements located in a county that

is adjacent to the district's county of jurisdiction if the

commission considers the land, equipment, or improvements:

(1) necessary, required, or convenient for any purpose necessary

or incident to the development and operation of navigable water

or a port located in the district's county of jurisdiction or a

county adjacent to that county; or

(2) may be in aid of, or necessary, required, or convenient for,

the development of industries and businesses on the land in the

county of jurisdiction or a county adjacent to that county.

district may acquire, and any public or private owner may dispose

of, land, equipment, or improvements on any terms to which the

commission and the property owner agree.

(d) If in connection with an acquisition or disposition of land,

equipment, or improvements under this section the governing body

of a municipality decides to discontinue operations of a port, as

a utility of the municipality or otherwise, the acquisition or

disposition of the land, equipment, or improvements may not be

completed until a majority of the qualified voters of the

municipality voting at an election called and held for that

purpose approve of the discontinuance of the operations.

(e) The commissioners may change the name of the district in

connection with the acquisition of land, equipment, or

improvements under this section.

(f) Notwithstanding the source of the revenue, a district that

acquires land, equipment, or improvements under this section may

use or pledge to the payment of obligations of the district for

the development of any district facility, regardless of the

location of the facility, any revenue of the district, except as

provided by Section 62.209.

(g) Section 41.001(a), Election Code, does not apply to an

election held under this section.

(h) Except as provided by this section, an election held under

this section must be conducted as provided by the Election Code.

Added by Acts 1999, 76th Leg., ch. 504, Sec. 1, eff. June 18,

1999.

Sec. 62.1072. ADDITIONAL COMMISSIONERS FOR ACQUISITIONS FROM

CERTAIN MUNICIPALITIES. (a) A district that acquires land,

equipment, or improvements under Section 62.1071 from a

municipality with a population of more than 35,000 that operates

navigation and port facilities and that is located in a county

adjacent to the county of jurisdiction may add positions for

members of the commission, as determined by the commission. Not

more than two positions may be added to the commission under this

section.

(b) The governing body of the municipality in which the acquired

land, equipment, or improvements are located shall appoint the

additional commissioners.

Subsection (a) shall serve terms that are consistent with the law

governing the terms of the other commissioners.

Added by Acts 1999, 76th Leg., ch. 504, Sec. 1, eff. June 18,

1999.

Sec. 62.108. ENTRY ON PROPERTY. The commissioners and the

engineers of a district together with all necessary teams, help,

tools, and instruments may go on any land inside the district to

examine the land and to make plans, surveys, maps, and profiles

without subjecting themselves to the action of trespass.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.109. BIDS. (a) Any person, corporation, or firm which

desires to bid on the construction of any work advertised under

Section 62.110 of this code shall, on application to the

commission, be furnished the survey, plans, and estimates for the

work.

(b) All bids or offers for the work shall be in writing, sealed,

and delivered to the chairman of the commission together with a

certified check for at least five percent of the total amount of

the bid.

proper contract, the deposit required by Subsection (b) of this

section shall be forfeited to the district.

(d) Any and all bids may be rejected at the discretion of the

commission.

(e) A district may take advantage of the bid procedure in

Sections 63.168-63.170 of this code by passing a simple

resolution and entering it in its minutes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.110. NOTICE OF BIDS. Notice that a contract is to be

awarded shall be given by publishing notice once a week for two

consecutive weeks in one or more newspapers with general

circulation in the state and by posting notice for at least 14

days in five public places in the county of jurisdiction, one of

which shall be the courthouse door and at least two of which

shall be inside the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1977, 65th Leg., p. 805, ch. 299, Sec. 2, eff.

Aug. 29, 1977.

Sec. 62.111. AWARD OF CONTRACT. (a) All contracts for

improvements, except those carried out and performed by the

government of the United States, shall be awarded by the

commission to the lowest and best responsible bidder.

(b) Nothing in this section shall prevent the making of more

than one improvement. Where more than one improvement is to be

made, a contract may be awarded separately for each improvement

or one contract may be awarded for all the improvements.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.112. INTEREST IN CONTRACTS. No county judge or county

commissioner of any county in a district, board member, or

district engineer may be directly or indirectly interested for

himself or as agent for another in a contract for the

construction of work to be performed by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.113. FORM OF CONTRACTS. All contracts made by the

commission shall be in writing and signed by the contractors and

at least two of the commissioners, the executive director of the

district, or an authorized representative of the executive

director.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1330, Sec. 10, eff. June 15, 2007.

Sec. 62.114. BOND OF CONTRACTOR. (a) The party, firm, or

corporation to whom a contract is awarded under Section 62.111 of

this code shall execute a bond, payable to the commission, for

twice the amount of the contract price, conditioned on faithful

performance of the obligations, agreements, and covenants of the

contract and that in default of the performance he will pay to

the district all damages sustained by reason of the default.

(b) The bond shall be approved by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.115. SUPERVISION OF WORK; REPORT. (a) Unless done

under the supervision of the United States, all work contracted

for by the commission shall be done under the supervision of the

district engineer.

(b) After work is completed according to a contract awarded by

the commission, the district engineer shall make a detailed

report of the work to the commission. The report shall show

whether or not the contract has been fully complied with and if

not, in which particular the contractor has failed to comply.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.116. INSPECTION OF WORK; PAYMENT. (a) The commission

shall inspect the progress of work being done under a contract,

and on completion of the contract, the commission shall draw a

warrant on the county treasurer payable to the contractor or his

assignee for the amount of the contract price. The warrant shall

be paid out of the construction and maintenance fund of the

district.

(b) If the commission considers it advisable, it may contract

for work to be paid for in partial payments as the work

progresses. The partial payments may not exceed in the aggregate

eighty percent of the total amount to be paid under the contract.

The amount of work completed at the time of the partial payment

shall be shown by a certificate of the district engineer.

chapter providing for the construction of any improvements by the

United States.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1971, 62nd Leg., p. 1770, ch. 518, Sec. 16, eff.

May 31, 1971.

Sec. 62.117. ANNUAL REPORT. (a) The commission shall make an

annual report of its official acts and file it with the clerk of

the commissioners court on or before January 1 of each year.

(b) The report shall include in detail:

(1) the kind, character, and amount of work done in the

district;

(2) the cost of the work;

(3) the amount paid out on order and for what purpose paid; and

(4) other data necessary to show the condition of improvements

made under the provisions of this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.118. COOPERATION WITH UNITED STATES. (a) If a river,

creek, stream, bay, canal, or waterway to be improved is

navigable or the proposed improvement is of a nature which

requires the permission or consent of the United States, the

commission may obtain the required permission or consent of the

United States.

(b) Instead of or in addition to employing an engineer as

provided in Section 62.076 of this code the commission may:

(1) adopt any survey of a river, creek, canal, stream, bay, or

waterway previously made by the United States;

(2) arrange for surveys, examinations, and investigations of the

proposed improvement; and

(3) arrange for supervision of the work of improvement by the

United States.

in any and all matters relating to the construction and

maintenance of canals and the improvement and navigation of

navigable rivers, bays, creeks, streams, canals, and waterways.

(d) The authority to cooperate shall extend to surveys, work, or

expenditures of money made or to be made either by the commission

or by the United States.

(e) The United States may aid in all such matters, and the

commission shall have authority to consent to the United States

entering on and taking management and control of the work where

necessary or permissible under the laws, regulations, and orders

of the United States.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.119. PREFERENCE LIEN; WAIVER; ENFORCEMENT. (a) If a

district leases, rents, furnishes, or supplies water to any

person, association of persons, water improvement district, or

corporation for the purpose of irrigation, the district shall

have, without regard to contract, a preference lien superior to

every other lien on the crop or crops raised on the land which is

irrigated.

(b) If any district obtains a water supply under contract with

the United States, the board of directors of the district may, by

resolution entered in the minutes and with consent of the

secretary of the interior, waive the preference lien, in whole or

in part.

of this section, all districts are entitled to all the rights and

remedies prescribed by Title 84, Revised Civil Statutes of Texas,

1925, as amended, for the enforcement of the lien between

landlord and tenant.

(d) The authority granted by this section shall be cumulative

of, and in addition to, the authority granted by other laws.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.120. CONTRACT FOR AND LEASE OF WATER SYSTEM. (a) A

district may enter into operating contracts and leases with

cities and other governmental subdivisions for the operation of

the portions of the district's water system which are designated

by the board.

(b) To the extent that the proceeds of revenue bonds were used

to acquire the portion leased, the annual payments paid by the

lessee to the district shall be in a sum which is sufficient to

permit the district to pay the proportionate part of the

principal, interest, reserves, and other requirements provided by

the bond proceedings on any revenue bonds which were issued to

acquire the leased properties.

properties may mature serially or otherwise not more than 50

years from their date of issue.

Added by Acts 1971, 62nd Leg., p. 1625, ch. 452, Sec. 2, eff. May

26, 1971.

Sec. 62.121. CONTRACTS AND OBLIGATIONS TO ACCOMPLISH DISTRICT

PURPOSES AND EXERCISE DISTRICT POWERS. (a) A district may enter

into a contract with any person, including a municipality or

other political subdivision in a county adjacent to the district,

in order to accomplish any district purpose or exercise any

district power.

(b) As part of a contract under this section, a district may

issue obligations, including obligations secured by ad valorem

taxes, and use the proceeds of such obligations to provide a

project located in a county adjacent to the district that serves

to accomplish a district purpose or exercise a district power in

such county.

Added by Acts 2005, 79th Leg., Ch.

426, Sec. 5, eff. September 1, 2005.

Sec. 62.122. DISPOSITION OF SALVAGE OR SURPLUS PERSONAL

PROPERTY. The commission may periodically dispose of surplus or

salvage personal property in the same manner as the commissioners

court of a county under Subchapter D, Chapter 263, Local

Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1330, Sec. 11, eff. June 15, 2007.

SUBCHAPTER E. GENERAL FISCAL PROVISIONS

Sec. 62.151. CONSTRUCTION AND MAINTENANCE FUND. (a) The

construction and maintenance fund shall include money received

from the sale of bonds and all other sources except tax

collections placed in the sinking fund to pay the principal of

and the interest on bonds.

(b) After the original petition is filed, all expenses

necessarily incurred in connection with the creation,

establishment, and maintenance of the district shall be paid from

the construction and maintenance fund.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.152. WARRANTS. The commission may draw warrants:

(1) to pay for legal services;

(2) to pay the salary of the engineer, his assistant, and any

other employees; and

(3) to pay all expenses incident to operation of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.153. DUTIES OF DISTRICT TREASURER. The district

treasurer shall:

(1) open an account for all funds received by him for the

district and all district funds which he pays out;

(2) pay out money on vouchers signed by the chairman of the

commission, any two members of the commission, or the

commissioners court, or any two of any number of persons

delegated by the commission with authority to sign vouchers,

provided that the commission may, in such delegation, limit the

authority of such persons and may require that each furnish a

fidelity bond in such amount as the commission shall specify and

subject to commission approval;

(3) carefully preserve all orders for the payment of money; and

(4) render a correct account to the commissioners court of all

matters relating to the financial condition of the district as

often as required by the commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1975, 64th Leg., p. 1915, ch. 618, Sec. 1, eff.

Sept. 1, 1975.

Sec. 62.154. APPLICABILITY OF SECTIONS 62.155-62.159. Sections

62.155-62.159 of this code apply to all revenue, income, money,

funds, or increments except revenue derived from taxation which

may result from the ownership and operation of the district's

improvements and facilities. However, these sections do not apply

to any of the following counties:

(1) Matagorda;

(2) Fort Bend;

(3) Brazoria;

(4) Chambers;

(5) Galveston; and

(6) Harris.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.155. DEPOSIT IN BANKING CORPORATION. (a) Instead of

depositing the revenue of the district in the manner provided by

law for districts, the commission may deposit the revenue in a

banking corporation in the manner provided in Section 62.156 of

this code.

(b) On selection of a banking corporation by the commission

under Subsection (a) of this section, revenue of the district

held by anyone other than the selected banking corporation, on

order of the commission, shall be deposited in the selected

banking corporation to the credit of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.156. SELECTION OF DEPOSITORY. The commission shall

select a depository as provided by Section 60.271.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 1400, Sec. 3, eff. Sept. 1,

1997.

Sec. 62.159. CONFLICTS WITH PRIOR BONDS OR OTHER LAWS. If

Sections 62.154-62.158 of this code conflict with the provisions

of any bonds issued by a district and secured in whole or in part

by a pledge of revenue, with the proceedings authorizing the

bonds, or with any special act relating to one specific district,

the bonds, proceedings, and special act shall control over these

sections.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.160. MAINTENANCE TAX. The commissioners courts of the

respective counties inside each district may levy and have

assessed and collected for the maintenance, operation, and upkeep

of the district and the improvements constructed by the district

an annual tax not to exceed 10 cents on the $100 valuation on all

property inside the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER F. BOND PROVISIONS

Sec. 62.191. ISSUANCE OF NAVIGATION BONDS. (a) After the

commission determines the cost of proposed improvements,

incidental expenses, and maintenance costs, it shall certify to

the commissioners court of the county of jurisdiction the amount

of bonds necessary to be issued.

(b) The commissioners court, at a regular or special meeting,

shall issue an order directing the issuance of navigation bonds

for the district in the amount so certified. The amount of bonds

may not be more than the amount authorized by the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.192. ISSUANCE OF ADDITIONAL BONDS. (a) If the proceeds

of bonds issued by a district are insufficient to complete the

proposed improvement or construction, if the commissioners decide

to begin other and further construction or improvements, or if

additional funds are required to maintain the improvements made,

the commission shall certify to the commissioners court the

necessity for an additional bond issue.

(b) Unless the amount previously authorized has been exhausted,

the commissioners court shall issue the bonds.

(1) the amount of bonds required;

(2) the purpose of the bonds;

(3) the rate of interest; and

(4) the length of time for which the bonds are to run.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.193. BOND ELECTION. (a) If the authorized amount of

bonds is exhausted, the commissioners court shall order an

election on the issuance of additional bonds to be held in the

district at the earliest legal time.

(b) The ballots shall be printed to provide for voting for or

against the proposition: "The issuance of bonds and the levy of a

tax to pay for the bonds."

returns canvassed in the manner provided for the original bond

election in Subchapter B of this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.194. ORDER FOR BONDS AND TAX. If on the canvass of the

vote it is determined that a majority of the votes cast at the

election were in favor of the issuance of bonds and levy of tax,

the commissioners court shall issue an order directing the

issuance of the bonds and the levy of a tax.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.195. FORM OF BONDS. (a) Bonds issued under the

provisions of this chapter shall be issued in the name of the

district, signed by the county judge of the county of

jurisdiction, and attested by the county clerk of the county of

jurisdiction with the seal of the commissioners court of the

county of jurisdiction affixed to them.

(b) The bonds shall be issued in the denominations and payable

at the time or times, not more than 40 years from their date,

which may be considered most expedient by the commissioners

court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.196. DUTIES OF ATTORNEY GENERAL. (a) Before the bonds

are offered for sale, the district shall send to the attorney

general:

(1) a copy of the bonds to be issued;

(2) a certified copy of the order of the commissioners court

levying the tax;

(3) a copy of the order of the commissioners court levying the

tax to pay interest and provide a sinking fund;

(4) a statement of the total bonded indebtedness of the

district, including the series of bonds proposed and the assessed

value of property for the purpose of taxation, as shown by the

last official assessment by the district or, if the district has

made no prior assessment, the last official assessment by the

county; and

(5) other information which the attorney general may require.

(b) The attorney general shall carefully examine the bonds in

connection with the facts, the constitution, and the laws on the

execution of the bonds.

finds that the bonds were issued in conformity with the

constitution and laws and that they are valid and binding

obligations on the district, he shall officially certify the

bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 62.197. REGISTRATION OF BONDS. After the bonds have been

examined by the attorney general and his certificate issued, they

shall be registered by the comptroller in a book to be kept for

that purpose, and the certificate of the attorney general shall

be preserved in the record for use in the event of litigation.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.198. VALIDITY OF BONDS. (a) After the bonds have been

approved by the attorney general and registered by the

comptroller, they shall be held in every action, suit, or

proceeding in which their validity is or may be brought in

question prima facie valid and binding obligations.

(b) In every action brought to enforce collection of bonds or

interest on them, the certificate of the attorney general, or a

duly certified copy of it, shall be admitted and received as

prima facie evidence of the validity of the bonds and the coupons

attached.

the bonds or coupons is forgery or fraud.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.199. RECORD OF BONDS. (a) After bonds have been issued

under the provisions of this chapter, the board shall procure and

deliver to the treasurer of the county of jurisdiction a

well-bound book in which a record shall be kept of all the bonds.

(b) A record shall be kept in the book of:

(1) the bond numbers and amount of the bonds;

(2) the rate of interest;

(3) the date of issuance and the date when the bonds are due and

where payable;

(4) the proceeds from the bonds;

(5) the tax levy to pay interest on and to provide a sinking

fund for bond payment; and

(6) any payment of a bond.

interested parties, either taxpayers, bondholders, or otherwise,

in the district.

(d) The county treasurer shall receive for his services in

recording these matters the same fees which are allowed by law to

the county clerk for similar records.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.200. SALE OF BONDS. (a) After the bonds have been

registered, the chairman of the commission shall offer the bonds

for sale and shall sell the bonds on the best terms and for the

best price possible. None of the bonds shall be sold for less

than face par value and accrued interest.

(b) After money is received from the sale of bonds, it shall be

paid to the county treasurer and he shall place it to the credit

of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.201. CHAIRMAN'S BOND. Before the chairman of the

commission may sell any bonds, he shall execute a good and

sufficient bond, payable to the county judge or his successors in

office. The bond shall be approved by the commissioners court and

shall be for an amount not less than the amount of the bonds

issued, and shall be conditioned on the faithful discharge of his

duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.202. TAXES; SINKING FUND INVESTMENT. (a) After

district bonds have been voted, the commissioners court shall

levy and have assessed and collected on all property in the

district taxes sufficient in amount to pay the interest on the

bonds and to annually deposit an amount in the sinking fund

sufficient to discharge and redeem the bonds at their maturity.

(b) If advisable, the sinking fund shall from time to time be

invested by the commissioners court in county, municipal,

district, or other bonds which may be approved by the attorney

general.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.203. ISSUANCE OF REFUNDING BONDS; FORMALITIES. (a) A

district which has outstanding bonds may, by order of the

commissioners court of the county of jurisdiction and without

submitting the proposition to an election, authorize and issue

its refunding bonds for the purpose of retiring all or any part

of its outstanding bonds.

(b) The refunding bonds may mature serially or otherwise in not

more than 40 years from their date.

district by the county judge and county clerk under the seal of

the commissioners court and shall in other respects have the

details and be issued in the manner provided by the commissioners

court in the order authorizing the bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.204. REFUNDING BONDS SOLD AT PAR. The refunding bonds

shall be sold by the commission at not less than their par value,

delivered to the holders of not less than a like par amount of

the bonds of the district authorized to be refunded in exchange

for the prior bond obligations, or sold in part and exchanged in

part.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.205. APPROVAL OF REFUNDING BONDS BY ATTORNEY GENERAL.

The refunding bonds shall be submitted to the attorney general

for approval and shall be registered by the comptroller in the

same manner and with the same effect as is now provided by law

for the approval and registration of municipal bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.206. TAX LEVY FOR REFUNDING BONDS. (a) If a district

issues refunding bonds, the district shall annually levy taxes on

all taxable property in the district sufficient to pay interest

on the bonds as it becomes due and to pay the principal of the

bonds at maturity.

(b) In making the annual levies, the district may take into

consideration estimated delinquencies based on tax collection

experience over the preceding years and levy the taxes in an

amount, after deduction of estimated delinquencies, sufficient to

pay principal and interest requirements and the cost of tax

collection.

of the holders of the bonds refunded, a district may pledge to

the payment of the refunding bonds the proceeds of taxes levied

for payment of the bonds refunded and delinquent at the time of

the authorization of the refunding bonds, cash or securities in

the sinking fund maintained for payment of the bonds refunded, or

both.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.207. AUTHORITY OF SECTIONS 62.203-62.206. Sections

62.203-62.206 of this code shall, without reference to other

laws, constitute full authority for the issuance of refunding

bonds. No proceedings, publications, elections, or referendums

other than those required in Sections 62.203-62.206 shall be

necessary to the authorization and issuance of refunding bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.208. REVENUE BONDS. (a) A district may issue revenue

bonds on the terms and under the provisions of Chapter 111, Acts

of the 43rd Legislature, 1st Called Session, 1933, or Chapter 38,

Acts of the 47th Legislature, Regular Session, 1941:

(1) to purchase, construct, improve, enlarge, extend, and repair

dams, reservoirs, water rights, water wells, canals, pipelines,

pumps, pump stations, land, easements, rights-of-way, and other

property and facilities necessary to provide a water supply for

the irrigation of land and for industrial, commercial, domestic,

municipal, and other beneficial uses;

(2) to accomplish any of the purposes designated in the

previously mentioned two acts; and

(3) for general improvement purposes without designating the

improvement.

(b) If the bonds are issued for the purposes stated in

Subsection (a)(1) of this section, the district may own and

operate the facilities and sell and deliver water to any person.

The properties and facilities, the uses for the water supply, and

the purchasers of the water may be inside or outside the

boundaries of the district but may not be inside the boundaries

of any other previously created navigation district or flood

control district.

the proceeds may be spent for any purpose designated in this

section.

(d) As each installment of an authorized issue of bonds is

prepared for delivery, the commission shall specify the

particular purposes for which the proceeds of that installment

will be spent.

(e) A district may enter into operating contracts and leases

with responsible persons or corporations for the operation of

those portions of the district's water distribution system which

the commission may designate. In that case, the annual rentals to

be paid to the district by the lessee shall be a sum sufficient

to permit the district to meet its obligations for the payment of

that proportionate part of any revenue bonds, including

principal, interest, reserves, and other requirements provided in

the bond proceedings, which were issued to acquire the leased

properties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 62.209. USE OF BOND PROCEEDS FOR CERTAIN ACQUISITIONS OF

CERTAIN DISTRI

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