reglab/statecodes huggingface dataset:
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter H. Waste Disposal and Control of Storm Water › Section 51.339. Taxes

Sec. 51.339.  TAXES.  The district, either solely or in connection with other powers granted by this chapter, may impose taxes in addition to the taxes which may have been or may be imposed by another governmental agency included in the district.
Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter H. Waste Disposal and Control of Storm Water › Section 51.340. Certain Damages Caused by Sewage Backup

Sec. 51.340.  CERTAIN DAMAGES CAUSED BY SEWAGE BACKUP.  (a)  A district may pay actual property damages caused by the backup of the district's sanitary sewer system regardless of whether the district would be liable for the damages under Chapter 101, Civil Practice and Remedies Code.
(b)  This section does not waive governmental immunity from suit or liability.
Added by Acts 2011, 82nd Leg., R.S., Ch. 181 (S.B. 1140), Sec. 1, eff. May 28, 2011.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter I. General Fiscal Provisions › Section 51.351. Construction Fund

Sec. 51.351.  CONSTRUCTION FUND.  (a)  The proceeds from the sale of bonds shall be deposited in the construction fund.
(b)  Money deposited in the construction fund shall be used to pay expenses, debts, and obligations necessarily incurred in the creation, establishment, and maintenance of the district and to pay the purchase price of property and construction contracts, including purchases for which the bonds were issued.
(c)  If the bonds were issued in accordance with a contract with the United States, debts and obligations may be paid from the construction fund under the terms of or incident to the contract.
(d)  After the payment of obligations for which the bonds were issued, any remaining money in the construction fund may be transferred to the maintenance fund.
Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter I. General Fiscal Provisions › Section 51.352. Maintenance Fund

Sec. 51.352.  MAINTENANCE FUND.  (a)  The district shall have a maintenance fund which shall include money collected by assessment or other method for the maintenance, repair, and operation of the properties and plant of the district or for temporary annual rental due to the United States.
(b)  The maintenance fund shall be used to pay all expenses of maintenance, repair, and operation of the district except the expenses of assessing and collecting taxes for the interest and sinking fund.  Expenses for collecting taxes for the interest and sinking fund shall be paid from the interest and sinking fund.
(c)  The district may pay from the maintenance fund other expenses for which the payment is not provided in this chapter.
Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter I. General Fiscal Provisions › Section 51.353. Amortization and Emergency Fund

Sec. 51.353.  AMORTIZATION AND EMERGENCY FUND.  (a)  The board shall have a competent engineer make an inspection and valuation of the physical property of the district which is subject to decay, obsolescence, injury, or damage by sudden, accidental, or unusual causes, and based on the inspection and valuation, the engineer shall determine as nearly as he can a sufficient amount to be set aside annually to pay for replacement of each item of physical property at the end of its economic life or for the restoration or replacement of any item of physical property if it is lost, injured, or damaged.
(b)  The board shall set aside a portion of the maintenance fund as it is collected equal to the amount determined under Subsection (a) of this section and shall place this money in the amortization and emergency fund.  No part of this fund may be spent except to replace amortized property or to replace or restore lost, injured, or damaged property.
(c)  Any amount in the amortization and emergency fund which is not spent for the purposes for which the fund was created may be invested in bonds or interest bearing securities of the United States.
(d)  The board is not required to create an amortization and emergency fund, but if the board does create the fund, it shall be kept up and maintained.
Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.401. Authority to Issue Bonds of Districts Operating Under Article Iii, Section 52, of the Texas Constitution

Sec. 51.401.  AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING UNDER ARTICLE III, SECTION 52, OF THE TEXAS CONSTITUTION.  A district which is operating under Article III, Section 52, of the Texas Constitution, may issue bonds and lend its credit in an amount of not more than one-fourth of the assessed valuation of the real property in the district.  However, the total indebtedness of any city or town may never be more than the limits imposed by the Texas Constitution.
Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.402. Authority to Issue Bonds of Districts Operating Under Article Xvi, Section 59, of the Texas Constitution

Sec. 51.402.  AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING UNDER ARTICLE XVI, SECTION 59, OF THE TEXAS CONSTITUTION.  A district operating under Article XVI, Section 59, of the Texas Constitution, may incur debt evidenced by the issuance of bonds for any purpose authorized by this chapter, Chapter 49, or other applicable laws, including debt which is necessary to provide improvements and maintenance of improvements to achieve the purposes for which the district was created.
Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.
Amended by:
Acts 2005, 79th Leg., Ch. 962 (H.B. 1644), Sec. 2, eff. June 18, 2005.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.403. Amount of Debt Limited by Constitution

Sec. 51.403.  AMOUNT OF DEBT LIMITED BY CONSTITUTION.  No district may issue bonds or create indebtedness in an amount which is more than that authorized by the Texas Constitution.
Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.404. Issuance of Preliminary Bonds

Sec. 51.404.  ISSUANCE OF PRELIMINARY BONDS.  A district may issue preliminary bonds to create a fund to pay:
(1)  costs of organization;
(2)  costs of making surveys and investigations;
(3)  attorney's fees;
(4)  costs of engineering work;
(5)  costs of the issuance of bonds;  and
(6)  other costs and expenses incident to organization of the district and its operation in investigating and determining plans for its plant and improvements and in issuing and selling bonds to provide for permanent improvements.
Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.405. Election on Preliminary Bonds

Sec. 51.405.  ELECTION ON PRELIMINARY BONDS.  (a)  The proposition for the issuance of preliminary bonds shall be submitted to the electors of the district.
(b)  The election may be held at the same time as the election to confirm the creation of the district or at a later time.
(c)  The board shall make an estimate of the expenses to be paid with the proceeds of the preliminary bonds and shall include this estimate in the notice of election.
Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.406. Conditions of Preliminary Bonds

Sec. 51.406.  CONDITIONS OF PRELIMINARY BONDS.  (a)  After preliminary bonds have been authorized at an election, the board may order the issuance of the bonds in an amount which is not more than the amount stated in the notice of election.
(b)  The bonds may be paid serially or on amortization at any time not more than 10 years from their date.
(c)  Although the bonds will be known and designated in the records as preliminary bonds, it is not necessary to make this designation on the bonds.
Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.407. Tax to Pay Preliminary Bonds

Sec. 51.407.  TAX TO PAY PRELIMINARY BONDS.  At the time preliminary bonds are issued, a tax shall be levied to pay principal and interest as the bonds mature and to pay the cost of assessing and collecting the taxes.
Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.408. Issuance of Bonds

Sec. 51.408.  ISSUANCE OF BONDS.  (a)  After a district is created and has adopted plans for construction of a plant and improvements, it may issue bonds to pay for constructing the plant and improvements and to pay costs and charges incident to the construction including the cost of necessary property and the retirement of preliminary bonds.
(b)  The maximum amount of bonds which may be issued may not be more than the amount of the engineer's estimate plus the additional amounts added by the board in the election order.
Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.410. Engineer's Report

Sec. 51.410.  ENGINEER'S REPORT.  (a)  Before an election is held to authorize the issuance of bonds, an engineer's report, which includes the plans and improvements to be constructed together with maps, plats, profiles, and data showing and explaining the engineer's report, shall be filed in the office of the district and shall be available for public inspection.
(b)  The engineer's report shall contain a detailed estimate of the cost of improvements, including the cost of any property to be purchased, and an estimate of the time required to complete the improvements to the degree to which they may provide service.
(c)  The board shall consider the engineer's report and may make changes in the report and note them in the minutes.
Acts 1971, 62nd Leg., p. 337, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.411. Election Order

Sec. 51.411.  ELECTION ORDER.  (a)  After the engineer's report is filed and approved, the board may order an election in the district to authorize the issuance of the bonds.
(b)  In the order, the board shall estimate the total amount of money needed to cover the items listed in Section 51.409 of this code.
(c)  The election order shall state:
(1)  the proposed maximum interest rate on the bonds;
(2)  the maximum maturity date of the bonds;
(3)  the time and places for holding the election;  and
(4)  the names of the election officers.
(d)  The election order shall be entered in the minutes of the board.
Acts 1971, 62nd Leg., p. 337, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.413. Ballots

Sec. 51.413.  BALLOTS.  (a)  The proposition to be voted on shall be the issuance of the total amount of bonds covered by the engineer's estimate plus additional estimates made by the board.
(b)  The ballots shall be printed to provide for voting for or against:  "The issuance of bonds and the levy of taxes to pay for the bonds."
(c)  If a contract is proposed with the United States under the federal reclamation laws, the ballots shall be printed to provide for voting for or against:  "The contract with the United States and the levy of a tax to pay the contract."
Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.414. Vote at Election

Sec. 51.414.  VOTE AT ELECTION.  (a)  Bonds of a district operating under the provisions of Article III, Section 52, of the Texas Constitution, may be issued only with the approval of two-thirds of the electors of the district participating in the election.
(b)  In a district organized under the provisions of Article XVI, Section 59, of the Texas Constitution, bonds may be issued or indebtedness created only with the approval of a majority of the electors of the district participating in the election.
Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.415. Order to Issue Bonds or Execute Contract

Sec. 51.415.  ORDER TO ISSUE BONDS OR EXECUTE CONTRACT.  After the vote is canvassed and the results are declared to be favorable to the proposition, the board shall make and enter an order directing the issuance of the bonds or the execution of a contract with the United States.  The bonds or contract shall be in a sufficient amount to pay for the improvements together with all necessary incidental expenses, but the amount may not be more than the amount specified in the election order and notice of election.
Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.419. Conditions of Bonds

Sec. 51.419.  CONDITIONS OF BONDS.  (a)  The bonds may be issued to mature at the end of a term of years or to mature serially at any date which is not later than the maximum maturity date stated in the election order.
(b)  The bonds may be issued at any rate of interest which is not more than the rate of interest set in the election order.
Acts 1971, 62nd Leg., p. 339, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.420. Form of Bonds

Sec. 51.420.  FORM OF BONDS.  (a)  The bonds shall be issued in the name of the district and shall be signed by the president and attested by the secretary, with the seal of the district attached.
(b)  The bonds shall be issued in denominations of $100 or multiples of $100 and shall be payable annually or semiannually.
(c)  The board shall determine and include in the bonds the time, place, manner, and condition of payment of principal and interest on the bonds, but none of the bonds may be made payable more than 40 years from their date.
(d)  The lien for payments due to the United States under a contract that was not accompanied by a deposit of bonds with the United States shall be a preferred lien to that of any issue of bonds or any series of any issue of bonds subsequent to the date of the contract.
Acts 1971, 62nd Leg., p. 339, ch. 58, Sec. 1, eff. Aug. 30, 1971.  Subsec. (b) amended by Acts 1971, 62nd Leg., p. 1768, ch. 518, Sec. 4, eff. May 31, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.423. Validation Suit

Sec. 51.423.  VALIDATION SUIT.  (a)  A district may file a suit to determine the validity of the creation of the district and the bonds.
(b)  If requested by the secretary of the interior, the district shall file a suit to validate a contract made with the United States.
(c)  If a validation suit is filed, the bonds do not have to be approved by the attorney general.
Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.424. Effect of Prior Registration

Sec. 51.424.  EFFECT OF PRIOR REGISTRATION.  If bonds are approved by the attorney general and registered by the comptroller before a validation suit is filed, the filing of the suit cancels the prior registration.
Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.425. Procedure in Validation Suit

Sec. 51.425.  PROCEDURE IN VALIDATION SUIT.  (a)  A validation suit shall be brought by the district in the district court of any county in which all or part of the district is located or in a district court in Travis County.
(b)  The suit shall be in the nature of a proceeding in rem.
(c)  Any person who is interested in the suit may intervene and file an answer.
(d)  The issue shall be tried and determined by the court and judgment shall be entered on the findings.
(e)  Repealed by Acts 1981, 67th Leg., p. 2646, ch. 707, Sec. 4(50), eff. Aug. 31, 1981.
Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.  Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, Sec. 4(50), eff. Aug. 31, 1981.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.426. Notice of Validation Suit

Sec. 51.426.  NOTICE OF VALIDATION SUIT.  (a)  To obtain jurisdiction of all parties to the validation suit, a general notice shall be published.
(b)  The notice shall be published once a week for at least two consecutive weeks before the term of the court at which the notice is to be returned.  The notice shall be published in a newspaper with general circulation in the county or counties in which the district is located, but if no newspaper is published inside the district, the notice shall be published in a newspaper in the nearest county in which a paper is published.
(c)  Notice also shall be served on the attorney general in the manner provided in civil suits.
(d)  The attorney general may waive notice if he is furnished a full transcript of the proceedings held in connection with the creation of the district and the issuance of the bonds or held in connection with the authorization of a contract with the United States.  A copy of the contract with the United States also must be furnished.
Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.427. Duties of Attorney General in Validation Suit

Sec. 51.427.  DUTIES OF ATTORNEY GENERAL IN VALIDATION SUIT.  (a)  The attorney general shall examine all the proceedings and shall require any further evidence and make any further examination which he considers advisable.
(b)  The attorney general then shall file an answer to the suit, submitting the issue of whether the proceedings are valid and the bonds are legal and binding obligations of the district or whether the contract with the United States is legal and binding on the district.
Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.428. Judgment in Validation Suit

Sec. 51.428.  JUDGMENT IN VALIDATION SUIT.  (a)  After the trial of the validation suit, if the judgment of the court is adverse to the district on any issue, the district may make an exception and point out the error, and the error may be corrected by the judge in the manner directed by the court.
(b)  The judgment shall be rendered showing that the corrections have been made and that the bonds or the contract with the United States are binding obligations of the district.
(c)  After the judgment is entered, it is res judicata in all cases which may arise in connection with:
(1)  the collection of the bonds or their interests;
(2)  any taxes levied to pay charges or any money required to pay a contract with the United States;  and
(3)  all matters relating to the organization and validity of the district or the validity of the bonds or contract.
Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.429. Effect of Validation Suit

Sec. 51.429.  EFFECT OF VALIDATION SUIT.  (a)  After a final judgment is rendered in the validation suit, the bonds or the contract with the United States shall be incontestable.
(b)  No suit may be brought in any court of this state to contest or enjoin the validity of the creation of the district, any bonds which are issued, any contract with the United States, or the authorization of a contract with the United States except in the name of the State of Texas by the attorney general on his own motion or on the motion of any party affected on good cause shown.
(c)  The attorney general may not file or prosecute such a suit unless it is based on allegations of fraud disclosed or found after the final judgment in the validation suit was rendered.
Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.430. Certified Copy of Decree

Sec. 51.430.  CERTIFIED COPY OF DECREE.  (a)  After the judgment of the district court is entered, the clerk of the court shall make a certified copy of the decree which shall be filed with the comptroller.  The comptroller shall record the decree in the book kept for that purpose.
(b)  The certified copy of the decree or a certified copy of the comptroller's record of the decree shall be received in evidence in any suit which may affect the validity of the organization of the district or the validity of the bonds or the contract and shall be conclusive evidence of validity.
Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.431. Registration of Bonds and Decree

Sec. 51.431.  REGISTRATION OF BONDS AND DECREE.  On the presentation of the bonds together with a certified copy of the decree of the court, the comptroller shall register the bonds in a book kept for that purpose.  The comptroller shall attach to each bond a certificate stating that the court's decree has been filed and recorded in his office and shall sign the certificate and attach his official seal.
Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.432. Sale of Bonds

Sec. 51.432.  SALE OF BONDS.  (a)  After the bonds are issued by the district, the board shall sell the bonds on the best terms and for the best price possible.
(b)  The board shall pay the proceeds from the sale of the bonds to the district depository.
(c)  The district may exchange bonds for property acquired by purchase or to pay the contract price of work done for the use and benefit of the district.
Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.433. Tax Levy

Sec. 51.433.  TAX LEVY.  (a)  At the time bonds are voted, the board shall levy a tax on all property inside the district in a sufficient amount to redeem and discharge the bonds at maturity.
(b)  The board annually shall levy or have assessed and collected taxes on all property inside the district in a sufficient amount to pay for the expenses of assessing and collecting the taxes.
(c)  If a contract is made with the United States, the board annually shall levy taxes on property inside the district in a sufficient amount to pay installments and interest as they become due.
(d)  The board may issue the bonds in serial form or payable in installments, and the tax levy shall be sufficient if it provides an amount sufficient to pay the interest on the bonds, the proportionate amount of the principal of the next maturing bonds, and the expenses of assessing and collecting the taxes for that year.
Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.436. Interest and Sinking Fund

Sec. 51.436.  INTEREST AND SINKING FUND.  (a)  The district shall have an interest and sinking fund which shall include all taxes collected under this chapter.
(b)  Money in the interest and sinking fund may be used only:
(1)  to pay principal and interest on the bonds;
(2)  to defray the expenses of assessing and collecting the taxes;  and
(3)  to pay principal and interest due under a contract with the United States if bonds have not been deposited with the United States.
(c)  Money in the fund shall be paid out of the fund on warrants by order of the board as provided in this chapter.
(d)  The depository shall receive and cancel each interest coupon and bond as it is paid and shall deliver it to the board to be recorded, cancelled, and destroyed.
Acts 1971, 62nd Leg., p. 343, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.437. Investment of Sinking Fund

Sec. 51.437.  INVESTMENT OF SINKING FUND.  (a)  The board may invest any portion of the sinking fund of the district in bonds of the United States, the state, any county or city in the state, any irrigation or water improvement district, school district, or other tax bonds issued under the laws of the state.
(b)  The funds may be invested if the bonds to be paid with them do not mature within three years from the time the investment is made and if it is necessary to preserve the best interest of the district.
Acts 1971, 62nd Leg., p. 343, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.438. Refunding Bonds

Sec. 51.438.  REFUNDING BONDS.  (a)  A district may issue bonds to refund all or any part of its outstanding bonds, notes, or other obligations including matured but unpaid interest coupons.
(b)  Refunding bonds shall mature serially or otherwise not more than 40 years from their date and shall bear interest at any rate or rates permitted by the constitution and laws of this state.
(c)  Refunding bonds may be made payable from the same source as the bonds, notes, or other obligations being refunded or from other additional sources.
(d)  The refunding bonds must be approved by the attorney general in the manner provided by law for other bonds of the district and shall be registered by the comptroller on the surrender and cancellation of the bonds being refunded.
(e)  The orders or resolutions authorizing the issuance of the refunding bonds may provide that the refunding bonds will be sold and the proceeds deposited in the place or places at which the bonds being refunded are payable, in which case the refunding bonds may be issued before the cancellation of the bonds being refunded.  If refunding bonds are issued before cancellation of the other bonds, an amount which, when added to the earnings and profits from the investment of such amount, is sufficient to pay the interest on and principal of the bonds being refunded to their maturity dates, or to their option dates if the bonds have been duly called for payment prior to maturity according to their terms, shall be deposited in the place or places at which the bonds being refunded are payable.
(f)  The comptroller shall register refunding bonds without the surrender and cancellation of bonds being refunded.
(g)  A refunding may be accomplished in one or in several installment deliveries.
(h)  Refunding bonds are investment securities under Chapter 8, Business & Commerce Code.
(i)  In lieu of the method provided by this section, a district may refund bonds, notes, or other obligations as provided by the general law of the state.
Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.  Amended by Acts 1985, 69th Leg., ch. 215, Sec. 1, eff. Sept. 1, 1985.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.439. Limitation of Authority to Incur Debt and Issue Bonds

Sec. 51.439.  LIMITATION OF AUTHORITY TO INCUR DEBT AND ISSUE BONDS.  (a)  For the benefit of purchasers or holders of bonds to be issued or sold, the board of a district operating under the provisions of Article XVI, Section 59, of the Texas Constitution, may limit the authority of the district to incur debt or issue bonds.
(b)  The board shall limit the authority by adopting a resolution which states that during a period of not more than 15 years the district will not issue bonds in an amount of more than 25 percent of the assessed value of taxable real property in the district according to the last assessment for district purposes or in an amount of more than a fixed sum or for certain named purposes.
(c)  The board shall publish notice of the adoption of the resolution once a week for two consecutive weeks in a newspaper with general circulation in the district.  The notice shall state that the resolution will take effect unless a petition against the proposed limitation signed by 20 percent of the electors of the district is presented within 20 days after the first publication of the notice.
(d)  If a petition is filed against the limitation, the resolution will not take effect until it is approved at an election held in the district.
(e)  The ballots for the election shall be printed to provide for voting for or against:  "The limitation during the term of ______ years of the maximum debt of the district to ______."  (The blank spaces shall be filled with the purpose of the election.)
(f)  If the limitation is approved at an election or if no petition is filed against the resolution, the district may not issue bonds under any statute or constitutional provision in excess of the limitation during the designated term of years except to complete and make repairs to improvements whose cost will be within the debt limitation.
Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.440. Issuing Bonds in Excess of Limitation

Sec. 51.440.  ISSUING BONDS IN EXCESS OF LIMITATION.  (a)  A district may issue bonds in excess of a limitation made under Section 51.439 of this code only after the commission has approved the plans and specifications with the estimate of costs.
(b)  If the plans, specifications, and estimate are approved, notice of the intention to issue the bonds shall be published once a week for three consecutive weeks in a newspaper with general circulation in the district.  The notice shall include a statement of the purpose for issuing the bonds, the amount of the proposed bond issue, and the time the hearing is to be held, which may not be less than 30 days after the notice is first published.
(c)  The board shall hold the hearing and any taxpayer, bondholder, or other interested person may appear and be heard.
(d)  If the board approves the issuance of the additional bonds in the amount and for the purpose stated in the notice, the question of issuing the bonds shall be submitted to the electors of the district at an election.
Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.441. Modifications of Improvements

Sec. 51.441.  MODIFICATIONS OF IMPROVEMENTS.  (a)  After bonds are issued or a contract is entered into with the United States, the board may give notice of an election to be held to authorize the issuance of additional bonds or a further contract with the United States.
(b)  Additional bonds may be issued or a supplemental contract made if the board considers it necessary to:
(1)  make modifications in the district or its improvements;
(2)  construct further or additional improvements and issue additional bonds on the report of the engineer;
(3)  make a supplemental contract with the United States;
(4)  make, on its own motion, additional improvements or purchase additional property to accomplish the purposes of the district and to serve the best interest of the district.
(c)  The board shall enter its findings in the minutes.
(d)  The election shall be held and the returns made in the manner provided in this chapter for the original election.
(e)  If the result of the election favors the issuance of the bonds or the supplemental contract with the United States, the board may order the bonds issued or the contract made with the United States in the manner provided in this chapter.
(f)  If a supplemental contract is made with the United States and bonds are not to be deposited with the United States, it is not necessary to issue bonds.  If the district is required to raise money in addition to the amount of the contract, the bonds shall be issued only in the additional amount needed.
Acts 1971, 62nd Leg., p. 345, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.442. Issuance of Additional Bonds or Creation of Additional Indebtedness Under Certain Conditions

Sec. 51.442.  ISSUANCE OF ADDITIONAL BONDS OR CREATION OF ADDITIONAL INDEBTEDNESS UNDER CERTAIN CONDITIONS.  (a)  A district may issue additional bonds or create additional indebtedness:
(1)  if works, improvements, and facilities constructed under a plan provided in Section 51.410 or 51.422 of this code are inadequate to accomplish the beneficial results which the district's location and conditions demand;
(2)  if it is considered necessary to make repairs, replacements, or additions to the district's improvements which cost more than $25,000;  or
(3)  if additional money is needed to complete the improvements as planned.
(b)  The district shall provide the additional money for the particular purpose in accordance with the provisions of this chapter regulating the creation of bond obligations subject to every limitation with respect to the original proceedings and the substantial protection of the substantive rights of holders of any of the district's outstanding obligations.
Acts 1971, 62nd Leg., p. 345, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.443. Interim Bonds

Sec. 51.443.  INTERIM BONDS.  After bonds, other than preliminary bonds or notes, are voted by a district, the board may declare an existing emergency with relation to money being unavailable to pay for engineering work, purchase of land, rights-of-way, construction sites, construction work, and legal and other necessary expenses and may issue interim bonds on the faith and credit of the district in the manner provided in Sections 51.444-51.449 of this code to pay these expenses.
Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.444. Limitations on Interim Bonds

Sec. 51.444.  LIMITATIONS ON INTERIM BONDS.  (a)  Interim bonds shall mature not later than 10 years from the date they are issued and shall be redeemable at any time before they mature, as provided in this subchapter.
(b)  The principal amount of the interim bonds may not be more than 25 percent of the principal amount of the district's bonds which have been voted but not sold.
(c)  Before the issuance of the interim bonds, the board, by resolution, may limit the issue to any amount less than 25 percent, and after the amount is determined and fixed by the resolution, no additional interim bonds may be issued and sold until all outstanding interim bonds are paid.
Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.445. Issuance of Bonds and Levy of Tax

Sec. 51.445.  ISSUANCE OF BONDS AND LEVY OF TAX.  (a)  After bonds other than preliminary bonds are voted, the board may authorize the issuance of the bonds in whole or in part as they are needed by the district.
(b)  The board shall levy and annually assess and collect sufficient taxes to pay principal and interest on the bonds.
(c)  The bonds may be approved by the attorney general and registered by the comptroller before the filing of the report of the commission under Section 51.421 of this code.
Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.  Amended by Acts 1981, 67th Leg., p. 981, ch. 367, Sec. 19, eff. June 10, 1981.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.446. Deposit of Bonds to Secure Interim Bonds

Sec. 51.446.  DEPOSIT OF BONDS TO SECURE INTERIM BONDS.  (a)  As the interim bonds are issued and sold, the board, by order, shall deposit bonds of the district which have been validated by a court or approved by the attorney general and registered by the comptroller as provided in Section 51.417 of this code in the district depository.
(b)  The bonds deposited shall be credited to the interest and sinking fund account created to pay the interim bonds.
(c)  The principal amount of the bonds deposited shall total at least 110 percent of the principal sum of the series of interim bonds which the bonds are deposited to secure.
(d)  The interest rate on the interim bonds may not be more than the interest rate on the bonds deposited to secure them.
Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.447. Procedure for Issuance and Sale of Interim Bonds

Sec. 51.447.  PROCEDURE FOR ISSUANCE AND SALE OF INTERIM BONDS.  (a)  Interim bonds shall be issued in the name of the district, signed by the president, and attested by the secretary, with the district seal attached to each bond.
(b)  The interim bonds may be issued in the denominations determined by the board and shall be approved by the attorney general and registered by the comptroller in the same manner as provided in Section 51.417 of this code.
(c)  Interim bonds may be sold in the same manner and on the same terms provided by law for the sale of other bonds of the district.
(d)  If interim bonds are sold at less than par value and accrued interest, the improvement bonds issued by the district must be sold at an increase over the price authorized by law in an amount sufficient to equal the discount allowed on the interim bonds.
Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.448. Payment of Interim Bonds

Sec. 51.448.  PAYMENT OF INTERIM BONDS.  (a)  The board shall appropriate the tax levied to pay the bonds deposited to the credit of the interest and sinking fund to pay the interim bonds or as much of that tax as necessary to secure the loan evidenced by the interim bonds.
(b)  The proceeds of the tax shall be devoted exclusively to the payment of the principal and interest on the interim bonds.
(c)  None of the provisions of this subchapter relating to interim bonds shall be construed as prohibiting the sale of bonds deposited to the credit of the interest and sinking fund to pay interim bonds or of any other bonds of the district, but if any of these bonds are sold, the district depository shall apply the proceeds to the payment of principal and accrued interest on the interim bonds and the remainder to the purposes for which the bonds were authorized.
(d)  If none of the bonds are sold at the time an installment on the principal and interest of interim bonds matures, the depository shall cancel the deposited bonds and attached interest coupons in an amount equal to the principal and interest of the interim bonds paid off and discharged.
Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.449. Redemption of Interim Bonds

Sec. 51.449.  REDEMPTION OF INTERIM BONDS.  (a)  At the option of the board, interim bonds may be redeemed at any time or times before maturity on payment by the district of the principal and accrued interest to the date fixed for redemption by the board.
(b)  When interim bonds are called for redemption before maturity, the secretary shall give written notice of the redemption to the bank or banking house named as the place of payment in the bonds or to its successor or assign.
(c)  In the notice, the secretary shall designate the bond or bonds called for redemption and payment and shall state number or numbers of the bonds.
(d)  The notice shall include the redemption date which shall not be more than 60 days after the date notice of call for payment is made.
(e)  If any of the bonds which are called for redemption are not presented, they shall cease to bear interest from and after the date fixed for redemption.
Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.450. Alternate Methods for Paying Bonds

Sec. 51.450.  ALTERNATE METHODS FOR PAYING BONDS.  (a)  As used in this section and in Sections 51.450-51.454 of this code, "net revenue" means income or increment which may come from ownership and operation of the improvements which are encumbered less the proportion of the district's revenue income reasonably required to provide for administration, efficient operation, and adequate maintenance of the district's services and facilities which are encumbered.  Net revenue does not include money derived from taxation.
(b)  A district which expects net revenue from operations may secure its bonds in any one of the following:
(1)  as provided in Section 51.433 of this code;
(2)  by entering into a contract to pledge the net revenue of the district and to mortgage and encumber part or all of the property and facilities, franchise, revenue and income from operations, and everything acquired or to be acquired by the district;  or
(3)  as provided in both Subdivisions (1) and (2) of this subsection.
Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.451. Taxes to Secure Certain Bonds

Sec. 51.451.  TAXES TO SECURE CERTAIN BONDS.  (a)  If bonds are secured as provided in Section 51.450(b)(3) of this code, at the time that net revenue together with money derived from taxes accumulates a surplus in the sinking fund equal to the amount required in the succeeding year to liquidate the interest and principal on the district's bonds maturing in that year, the district's annual tax levies may be lowered to produce not less than 25 percent of the bond maturities for the succeeding year.
(b)  If three successive years demonstrate that this net revenue is adequate to protect the district's bonds as they mature, the district's tax may be discontinued until further experience demonstrates the necessity to continue the tax to avoid default in the payment of the district's bonds as they mature.
Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.452. Election

Sec. 51.452.  ELECTION.  (a)  If the district proposes to issue bonds which will be secured under either Section 51.450(b)(2) or 51.450(b)(3) of this code, the proposition shall be presented at an election held under Section 51.413 of this code.
(b)  The ballots for the election shall be printed to provide for voting for or against one of the following propositions:
(1)  "The issuance of bonds and the pledge of net revenue for the payment of the bonds.";
(2)  "The issuance of bonds, the pledge of net revenue, and the creation of a lien on physical property to secure payment of the bonds.";  or
(3)  "The issuance of bonds, the pledge of net revenue, and the levy of adequate taxes to pay the bonds."
Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.
2023 Texas Statutes › Water Code › Title 4 - General Law Districts › Chapter 51 - Water Control and Improvement Districts › Subchapter K. Issuance of Bonds › Section 51.453. Hearing and Election on Certain Bonds

Sec. 51.453.  HEARING AND ELECTION ON CERTAIN BONDS.  (a)  A district which plans to issue bonds payable from and secured by a pledge of net revenue and a lien on the physical property, either or both, without the levy of taxes, is not required to hold a hearing to exclude land or adopt a plan of taxation.
(b)  The proposition for issuance of bonds may be submitted at the election held to confirm the creation of the district or at an election called by the board.
Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.