OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Eonorablo 8holby It. Long 

county At tornoy 

Jotforron County 

Bemmont, Toxu 

of March 7 La whl 

rubmitted in your lottor 

r0ii0ving questions: 

o Independent School 

08 Valley Authority 

8 for Intero~t and 

votorr of Rorodalo Independent 

uthorlze a tax rata r0r Local 

ntoremt and Slnklrq Fund ln 

1.00 per hundred v8luatlon?” 

Art. VIII, 3ec. 2, Conatltutlon of Taxma, provider 

that “tho Loglrlatun may, by general 18.~1, exppt from taxation pub110 property used for pub110 purporos. 

Art. 7150, V.A.C.S., provldom as rollowl 
gononble Shelbf 1;. Long, Page 2 

"Tho r0ii0ving proporty 

tax*t10n, to vltr 

rhll be l xampt rroai 

'48. Dlatrlota 8nd Authorltl88, propert ori 

papnonta in lieu 0r kxoa.--All property reual or 

person81 belongIng 8xolurirel to DZatrlata 8nd 

Authoritlra oreatod dlnotl 

lbtun purawmt to Art1010 

g$ A0t8 or th0 1sg18- 

, 8ootloa 59, 0r the 

Conatltutlon as 8genoloa 0r the st8t* 0r TOX88, and 

811 property real or peraorml belonglag l xolu8Irol~ 

to DIatrIota 8nd Authoritloa oreatod or inoorporatod 

under l8vr l a 8o topursuant d to Sootlon 59, Artiolo 

XVI or the Conatitutlonj provided that Ii 84 ruch 

District or Authority ha heretofore 8oqulred or 

dooa hereafter aoqulra propertf vhlah at the time 

of such acquisition Is or ~88 then rubjoot to taxation, and la at tho time OS Its 8oqulaltlon be3ng 

used for gonezwting, tr8namlttlng, 8nd di8trlbutIng 

electrIo energy or pover, auah Dlatrlot or Authority ah811 at the tlmea preaorlbed by kv for the 

payment of 8d valorem hxea make 8 pawont in lieu 

0r taxes to tho St8t.8 0r Tex88 8nd to tho oounty, 

city, and such taxing districts vlthla vhloh such 

property la altustodj such p8ymont la llou of tax08 

to be ln tho amount vhlch would be re8lIxod by lovylng an ad valorer tax 8t the current rate for tho 

then current t8x year b8aod on tho 8aaoaaed veluo 

or auoh property for tho last ourrent kx rear betore bolng aoquired by such Dlatrlot or Authority; 

provided firthor that no payment ah811 b8 mado vlth 

reapeot to 84 property no longer ovnod by l uah Dlatrlot or Authorit ior gonerating, tranamltting, or 

dlatrlbutlng l lootrlo l aorgy or povor. Suoh payment 

la lieu or tax08 shall be made out or tho revenues 

reoelved 61 l uah DIatrIct or Authorltf from the genemtlon, tnnaatlaalon, or dIatrlbutloa or l lootrlo 

povor and energy 8nd tho llablllt~ ror 88me ah811 

oonatltuto 8 lion or enoumbnnoe only on the ROYOnuea of such Dlatrlot or Authority, 8nd ah811 bo 

oonaldored as 8 part of the opentlng l xponaear 

SpeoIflo8lly, no paymeats ah811 be mdo In 110~ of 

taxoa with r8apeot to d8m8, dam altea, reaervolr 

areas, md vater dlatrlbutlng or lrrlg8tloa systema. 

It la the oxpressed leglal8tlvo lntrat of thIa Act 

th8t auoh Dlatrlota or Authorltler make paPent in 
~onor8ble Shelbr I. Long, P@JJO 3 

lieu of tux88 only vlth reapeot to proporti88 

vhloh 8t th8 tim0 Of their 8O~UiSitiO~ VOrO OD 

the ad V@lOrOm kx rolls 0r the Stat0 0r Foxes 

or 0r 84 oouatf, oltr, or 84 other bx%ng Dlatrlot of tho 8kto of Toxea 8ad vhloh 8t tho 

tlmo or the l oqulaltIan vore being uaod ror genl r8tlng, tr8namIttlng, or dlatrlbutIag l leotrlo 

pover and ener J prorldod furthor that it la 

the rxpreaard F oglaletlve latent tht no paymonta 

ah811 be umde in lieu of kxea vlth reapeot to 

dams, dam altee, r ea o r vol irO@S~ r and vetor dlatrlbuting or Irrigation apatomal; belonging to 

8ny l uah Authority or District. 

Tho Lover feohea Valley Authority Is a governmental 

@genOJ, body polltIo lrnd corporate crwted under hrt. XVI, 

Sec. 59, constitution of Toxaa, end tho Enabling Aot of tho 

LegIal8turo puraunnt thereto, eppwriag es Aotr 1933, 43rd 

E::: 

y& ;*p, p. 169, Ch. 63, as amended by Acts 1934, 43ti 

Ch. 17, end Acts 1941, 47th Leg., R.S., Ch. 

570. This k&lment, known as the 'Conarrvetlon Am8ndmentw 

provldoa for the creation of conaervatlon end reo1amatIon diatrlcta as rollova: 

%O. 598. Th8 oonaervetIon end dovolopment 

0r 811 0r tho aatur81 resources 0r this state, including th8 aontrol, @torIng, preaorvbtlon and diatrlbutlon of Its storm end flood vatora, the vatora 

0r Its rlmra end atroams, ror lrrIg8tlon, povor 

8ad all other uaoful purpoaear the real8amtIon and 

IrrIg8tIon of Its aria, semi-arid &ad othor lands 

nO@ding lwig8tIon, the reoluaetion end drrirmge 

or Its overflovod lands, end other l8nda noodlng 

dreIn8ge, the oonsorvatlon 8nd devolopent of its 

forests, vater and hTdro-el8otrlo povor, tho nevlgetion of Its Inland 8nd ooaatal vatora, end the 

preservation 8nd oonaorvation of 811 such nrrturol 

reaourcoa Or the Stat0 8rY each md 811 hereby dac&red pub110 rights ad dutioaJ 8nd the &gIal8- 

ture ah811 p8aa 811 auoh lava es m8y be l pproprleto 

thereto; 

“(b) FhOFO -7 b0 OIW@tOd V1th.b th0 6t8tO Of 

Texas, or tho State 887 be divided into, l uoh nuaher 
%ononble Shelby II. Low, Page 4 

of oonaorwtlon end reol8amtIon dlatrlota es 

m8~ b8 dotoninod to bo 8880ntl81 to the ecaompllalnont or the purpoaoa of this uendmont to 

tho oonatltutlon, vhloh dlatrIot ah811 bo govemB@liit@l 8~OnOiOS and bodies VOlitiO 8nb Oomolr.to 

vlth l uoh Dover8 0r govornmont 8nd vith the l Uthorlty to l xorolao such right , D 1 11 g d 

?unctlona 

amendment es 

oonoernlng 

a8y be oonrorred 

tho l ub

by 

JJt

18V.” 

’loro’o::‘t& 

(Ebphat 

ala 8ddOd.J 

tie l bovo olted act cn@tIng tho Lover Iechoa Valley Authority deolaroa In Seotlon 1 thOA-@Or the nature 8nd 

purposes 0r the authority to be es rollovar 

“sot. 1. There ah811 be and la hemby 

ore8tod 8 oonaorv8tIon 8nd reol8mation district 

by the name of 'Lover Iechoa Valley Authority', 

vhloh dlatrlot Is oreeted 8 a 8 governmental 

agency, body politic and corpor8te. Vested vlth 

all the authority es auoh under the Constitution 

and Lava of this State1 and vhloh shall hove and 

be reoognlxed to oxeroIae 811 0r the pcvera or 

auoh govermont 8gency and body polltlo end 

oorporete as Lre expressly euthorlsed in the provisions of tho Constitution, Sootion 59 OS Artlolo 16, for dIatrIota oreeted to conserve, store, 

oontrol, proserve, utilize end distribute the atom 

end flood vatera end the vetera 0r the rivers end 

streams ot th8 State, 8nd l uah povera es MJ bo oontempl8tod end Implied by tho purposes of this provision 0r tho Constitution, end es m8y be conferred 

by Oenoral l~v, es well es by tho provIaIona of 

this Aa t, l xoopt nothing herein contalnod shall 

l uthorlze a8ld district to levy 8ny kxoa or apecl.81 eaaoaamenta, or to areato 84 dobt papablo 

out or t.ax8tIon; 8nd said dlatrlot ah811 h8ve 8nd 

be reoagnlzed to exeraiae 811 tho rights 8nd povora 

Or en Independent gov8rnmont8l egonay; body polltlo end oorporato, to oonatruot, a185.ntaI.n and oper- 

*to, In the velloya or the Roohea River 8nd Its 

trlbutarloa, vlthln or vlthout tho bound8rIoa of 
549 

gonorable Shelby K;. Low, two 5 

auoh dir trio t , 84 end 811 works deemed oaaentl81 to th0 operetlon Of tho dlatriot 8nd for 

Its l dminlat~tlon in the oontrol, storing, 

preservation 8nd dlatrlbution to 811 uao~l 

purposes of tho ntora of the Hoohoa River 8nd 

its tribukry l treuo, InoludIng the atom end 

ri00d V8tOPS tbOZWOfJ end l uoh dlatpiot ah811 

hve 8nd be reoognlaod to ex8rOIae auoh euthorItr and powr of ooatrol 8x4 regul8tlan over 

l uah vatora of the Noohea Jilvor 8nd ltr tributmloa es ai8f k l xorolaed br the Skto of Toxea, 

l ubjeot to tho provisions of tho Conrtitutlon 

@Ad the’ Acts 0r the LegIal8turo.” 

In the light 0r tha roNgoIng oonatItutlOMl and 

statutory provisions tho conclusion Is laoaoap8blo that the 

Lover lecher Valley Authorlt~ Is 8n Authority oreetod dlreatly by mot oi the l&glalaturo puraurnt to Artlole NL, Section 

59, 0r the Conatltutlon es en l genoy 0r the St8te 0r Toxra 

vlthin the tax eraptlon granted In Art. 7150, Bubdlv. &L, 

V.A.C.B., 8nd oonaoquontly OXempt fPOaI t8X8tlOn iOr 10~81 

8aIntenanoo end for Interest and aInkIng fund on outstandIng 

bonded lndobtedneaa of Roaodelo Independent Sohool Dlatrlot. 

Since you at8to that none of th8 property of tho Authority 

v8a et the time oi Its aaquIaItlon being uaod for genozwtlng, 

transmitting, and dlatributlng l loatrlc energy or pover, the 

Authority is not obllgetod by bubdlv. 48, Art. 7150, V.A.C.S., 

to rke paymonta in lieu of taxoa to tho rohool district, but 

Is l p ec ir lo 8ll l xompt ~ thermwf8 by the r0110ving 18ngu8ge: 

“It is the 8xpreaaed legislative titont that no prysent at3811 

be made In lieu of taxoa vlth reapoot to d8ma, d8m sites, reaonol~ areas, upd v8tor dIatrlbutIng or lrrIg8tlon l ~a tema , 

belonging to 8zir auoh l uthorlt~ or Dirtriot." Tour questions 

one and tvo en therotore enavered In the 8rriXWttiVO. 

WO 8LY onclosing 8 oopy Of Opinion HO. 0-5433 vhloh 

dlapoaoa of pur third question. 

Veq truly yours 

ATTORFIEY OEKRRAL OF !JEXAS 

hgan Dlokaon 

Aaalaknt .--,