SPECIAL DISTRICT LOCAL LAWS CODE CHAPTER 9092. FRANKLIN COUNTY WATER DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE I. WATER CONTROL AND IMPROVEMENT DISTRICTS

CHAPTER 9092. FRANKLIN COUNTY WATER DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Text of section effective on April 01, 2027

Sec. 9092.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Franklin County Water District.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0102. NATURE OF DISTRICT. The district is:

(1) a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution; and

(2) a political subdivision of this state.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is:

(1) created to serve a public use and benefit; and

(2) essential to the accomplishment of the preservation and conservation of this state's natural resources.

(b) All land in the district will benefit from the district.

(d) The district performs an essential public function under the Texas Constitution in carrying out the purposes of this chapter because the accomplishment of those purposes is for the benefit of the people of this state and the improvement of their properties and the industries.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0104. DISTRICT TERRITORY. The district's boundaries are coextensive with the boundaries of Franklin County unless the district's territory has been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0105. CORRECTION OF INVALID PROCEDURES. If a court holds that any procedure under this chapter violates the United States Constitution or the Texas Constitution, the district by resolution may provide an alternative procedure that conforms with that constitution.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0106. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to effectuate the chapter's purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

SUBCHAPTER B. BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

Text of section effective on April 01, 2027

Sec. 9092.0201. COMPOSITION OF BOARD; BOARD ELECTION. The board consists of five directors elected as follows:

(1) one director represents and is elected from each county commissioners precinct in Franklin County by the voters of that precinct; and

(2) one director represents the district as a whole and is elected from the district at large.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0202. QUALIFICATIONS. (a) A candidate for:

(1) the at-large director position must be a qualified voter who resides in the district; and

(2) a precinct director position must be a qualified voter who resides in that precinct.

(b) A director must:

(1) be at least 18 years of age; and

(2) reside in and own land in the district.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0203. DIRECTORS' ELECTION. (a) A directors' election shall be held on the first Saturday in May of each odd-numbered year to elect the appropriate number of directors.

(b) The election order for the election of directors must state the time, place, and purpose of the election.

(1) the board shall appoint presiding judges as necessary; and

(2) each presiding judge shall appoint one assistant judge and at least two clerks to assist in holding the election.

(d) The board shall enter an order declaring the results of the election.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0204. VACANCIES. If a vacancy occurs in the membership of the board, the remaining directors shall appoint a person to fill the vacancy until the next directors' election. If the vacant position is not regularly scheduled to be filled at that election, the director elected at that election to fill the vacancy shall serve only for the unexpired term.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0205. BALLOT PETITION. (a) A person who wants the person's name printed on the ballot as a candidate for director must submit to the board's secretary a petition requesting that action.

(b) The petition must be signed by at least 10 residents of the district who are qualified to vote at the election.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0206. QUORUM. Three directors constitute a quorum for the transaction of all business. A favorable vote of a majority of a quorum present is sufficient for the enactment of all measures.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0207. OFFICERS. (a) The board shall elect from the board's membership a president, a vice president, and any other officers as the board determines necessary.

(b) The board shall appoint a secretary, who is not required to be a director.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0208. VOTE BY BOARD PRESIDENT. The president has the same right to vote as any other director.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0209. ABSENCE OR INACTION OF BOARD PRESIDENT. When the president is absent or fails or declines to act, the vice president shall perform all duties and exercise all powers this chapter confers on the president.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0210. DIRECTOR'S BOND. Each director shall give bond in the amount of $5,000 conditioned on the faithful performance of the director's duties.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0211. BOARD MEETINGS. (a) The board shall hold regular meetings at least once a month at the time and place set by board resolution or board bylaws.

(b) The president or any two directors may call a special meeting as necessary in administering district business.

(c) At least five days before the date of a special meeting, the secretary shall mail notice of the special meeting to each director. A director may waive the notice in writing.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0212. DISTRICT RECORDS. The board's accounts of its meetings and proceedings and its minutes, contracts, notices, and other records are subject to public inspection.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0213. DISTRICT OFFICE. A regular office shall be established and maintained in the district for conducting district business.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0214. EMPLOYEES. The district may employ a general manager, attorneys, accountants, engineers, financial experts, or other technical or nontechnical employees or assistants and set the amount and manner of their compensation.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0215. EXPENDITURES. The district may provide for the payment of expenditures considered essential to the proper operation and maintenance of the district and the district's affairs.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

SUBCHAPTER C. POWERS AND DUTIES

Text of section effective on April 01, 2027

Sec. 9092.0301. GENERAL POWERS. (a) The district has all the rights, powers, and privileges conferred by general law applicable to a water control and improvement district created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 51, Water Code.

(b) The district may exercise all functions and perform any act necessary or proper to carry out the purpose for which the district is created.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0302. GENERAL WATER SUPPLY POWERS. The district may:

(1) control, store, preserve, and distribute the district's waters and flood waters and the waters of the district's rivers and streams for all useful purposes by all practicable means, including the construction, maintenance, and operation of all appropriate improvements, plants, works, and facilities, and the acquisition of water rights and all other properties, lands, tenements, easements, and rights necessary to the purpose of the organization of the district;

(2) process and store such waters and distribute those waters for municipal, domestic, irrigation, and industrial purposes, subject to Subchapters A through D, Chapter 11, and Subchapter B, Chapter 12, Water Code; and

(3) purchase or contract for the purchase of water or a water supply from any person.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0303. CONTRACTS TO SUPPLY WATER SERVICES AND OPERATE FACILITIES. (a) The district may contract with a municipality or others to supply water services to them.

(b) The district may contract with a municipality for the rental or leasing of or for the operation of the municipality's water production, water supply, water filtration, or purification and water supply facilities.

(1) be on the terms, for the consideration, and for the time agreed to by the parties; and

(2) provide that the contract will continue in effect until bonds specified in the contract and any refunding bonds issued in lieu of the bonds are paid.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0304. ACQUISITION OF WATER STORAGE AND STORAGE CAPACITY. The district may lease or acquire rights in and to storage and storage capacity in any reservoir constructed or to be constructed by any person, or from the United States.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0305. SURVEYS AND INVESTIGATIONS. The district may conduct a survey or an engineering investigation to provide information for the district to facilitate the accomplishment of a district purpose.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0306. DISPOSAL OR LEASE OF PROPERTY. (a) The district may dispose of property or a property right that is not needed for a purpose for which the district is created.

(b) The district may lease property or a property right for a purpose that does not interfere with the use of district property.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0307. ACQUISITION OF PROPERTY; EMINENT DOMAIN. (a) The district, by gift, devise, purchase, lease, or condemnation, may acquire land, an easement, right-of-way, or other property in or outside the district that is incident to or necessary in carrying out a district purpose.

(b) The district may exercise the power of eminent domain. Procedures with reference to condemnation, the assessment and estimation of damages, payment, appeal, and entrance on property pending appeal, and other procedures prescribed by Chapter 21, Property Code, apply to the district.

(c) The district's authority under this section to exercise the power of eminent domain expired on September 1, 2013, unless the district submitted a letter to the comptroller in accordance with Section 2206.101(b), Government Code, not later than December 31, 2012.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0308. COST OF RELOCATING OR ALTERING PROPERTY. (a) If the district's exercise of the power of eminent domain, the power of relocation, or any other power granted by this chapter makes necessary taking property or relocating, raising, rerouting, changing the grade of, or altering the construction of a highway, railroad, electric transmission line, telephone or telegraph property or facility, or pipeline, the necessary action shall be accomplished at the district's expense.

(b) The district's duty to pay under this section is limited to the actual cost, without enhancement, of the property taken or work required, after deducting any net salvage value derived from property taken.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0309. ARRANGEMENTS WITH STATE AND UNITED STATES. The district may cooperate or contract with this state, including a state agency, or the United States to exercise a district power or further a district purpose and to receive a grant, a loan, or an advancement from this state or the United States for those purposes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0310. AWARDING OF CONTRACTS. For a contract awarded on or after September 1, 1995, the district shall comply with the requirements of Section 49.273, Water Code, when awarding the contract.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0311. POWER TO QUALIFY FOR BENEFITS UNDER OTHER LAW. The district has the power necessary to fully qualify for and gain the benefits of all laws that are helpful in carrying out the purposes for which the district is created.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Text of section effective on April 01, 2027

Sec. 9092.0401. TAX METHOD. The district shall use the ad valorem plan of taxation.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0402. AUTHORITY TO IMPOSE TAX; TAX ELECTION. (a) If the tax is authorized at an election under Section 49.107, Water Code, the board annually may impose an ad valorem tax to provide money:

(1) necessary to construct or acquire, maintain, and operate works, plants, and facilities considered essential or beneficial to the district and the district's purposes; or

(2) adequate to defray the cost of the district's maintenance, operation, and administration.

(b) An election for the imposition of taxes authorized by this section must be:

(1) ordered by the board; and

(2) held and conducted, with notice provided and results determined, in the manner provided by this chapter relating to elections for the authorization of bonds.

(c) In ordering a tax election authorized by this section, the board must specify the maximum proposed tax rate. To impose a maintenance tax at a rate that exceeds the maximum rate approved by the voters, the board must submit the question of a tax rate increase to the voters in the manner provided by this section.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0403. DEPOSITORY. (a) The board shall designate one or more banks in the district to serve as a depository for the district's money.

(b) District money shall be deposited in a designated depository, except that sufficient money shall be remitted to the bank or banks of payment to pay the principal of and interest on the district's outstanding bonds on or before the maturity date of the principal and interest.

(c) Membership of a bank officer or director on the board does not disqualify the bank from being designated as a depository.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0404. FORM OF RECORDS AND ACCOUNTS. District records and accounts must conform to approved methods of bookkeeping.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0405. AUDIT REPORT. (a) The audit report prepared under Subchapter G, Chapter 49, Water Code, shall be submitted at the first regular board meeting after the audit is completed.

(b) A copy of the audit report shall be filed:

(1) as required by Section 49.194, Water Code;

(2) with the district's depository; and

(3) in the office of the auditor who performed the audit.

(c) The copies described by Subsection (b) must be open to public inspection, in accordance with Section 49.196, Water Code.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0406. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The district is not required to pay a tax or assessment on a district project or any part of the project.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

SUBCHAPTER E. BORROWED MONEY; BONDS

Text of section effective on April 01, 2027

Sec. 9092.0501. AUTHORITY TO BORROW MONEY AND ISSUE BONDS. The district may borrow money and issue bonds to carry out any power conferred by this chapter, including to provide money to purchase or otherwise provide works, plants, facilities, or appliances necessary to accomplish the purposes authorized by this chapter.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0502. FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president; and

(3) attested by the secretary.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0503. MATURITY. District bonds must mature not later than 40 years after the date of their issuance.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0504. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES. (a) District bonds, other than refunding bonds, payable wholly or partly from ad valorem taxes may not be issued unless authorized by an election at which a majority of the votes cast favor the bond issuance.

(b) The board may order an election under this section without a petition. The order must specify:

(1) the time and places at which the election will be held;

(2) the purpose for which the bonds will be issued;

(3) the maximum amount of the bonds;

(4) the maximum interest rate of the bonds;

(5) the maximum maturity of the bonds;

(6) the form of the ballot; and

(7) the presiding judge for each polling place.

(c) Notice of the election must be given by publishing a substantial copy of the election order in a newspaper of general circulation in the district once each week for at least four consecutive weeks. The first publication must be not later than 28 days before the election date.

(d) If an election to issue bonds under this section fails, the board may not order an election under this section for a period of six months.

(e) The district may issue without an election bonds not payable wholly or partly from ad valorem taxes.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0505. BONDS PAYABLE FROM REVENUE. (a) In this section, "net revenue" means the district's gross revenue less the amount necessary to pay the reasonable cost of maintaining and operating the district and the district's property.

(b) The board may issue bonds payable, as pledged by board resolution, from:

(1) all or part of the district's net revenue;

(2) the net revenue of one or more contracts made before or after the issuance of the bonds; or

(3) other revenue or income specified by board resolution or in the trust indenture.

(c) The pledge may reserve the right to issue additional bonds on a parity with, or subordinate to, the bonds being issued, subject to conditions specified by the pledge.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0506. BONDS PAYABLE FROM AD VALOREM TAXES. The board may issue bonds payable, as pledged by board resolution, from:

(1) ad valorem taxes of the district; or

(2) ad valorem taxes and revenue of the district.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0507. TAX AND RATE REQUIREMENTS. (a) If the district issues bonds payable wholly or partly from ad valorem taxes, the board shall impose an ad valorem tax sufficient to pay the bonds and the interest on the bonds as the bonds and interest become due. The board shall take into consideration reasonable delinquencies and collection costs in imposing the ad valorem tax. The board may adopt the tax rate for any year after considering the money reasonably to be received from the pledged revenue available for payment of principal and interest and to the extent and in the manner permitted by the resolution authorizing the issuance of the bonds.

(b) If the district issues bonds payable wholly or partly from revenue, the board shall impose and, as necessary, revise the rates of compensation for water sold and services provided by the district.

(1) pay the expenses of operating and maintaining the district's facilities;

(2) pay the bonds as they mature and the interest as it accrues; and

(3) maintain the reserve and other funds as provided by the resolution authorizing the issuance of the bonds.

(d) For bonds payable partly from revenue, the rates of compensation must be in an amount sufficient to assure compliance with the resolution authorizing the issuance of the bonds.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0508. ADDITIONAL SECURITY. (a) District bonds, including revenue bonds, that are not payable wholly from ad valorem taxes may be additionally secured, at the board's discretion, by a deed of trust or mortgage lien on the district's physical property and on all franchises, easements, water rights and appropriation permits, leases, and contracts and rights appurtenant to the property, vesting in the trustee power to:

(1) sell the property for the payment of the debt;

(2) operate the property; and

(3) take other action to further secure the bonds.

(b) A purchaser under a sale under the deed of trust lien, if one is given:

(1) is the absolute owner of the property, facilities, and rights purchased; and

(2) is entitled to maintain and operate the property, facilities, and rights.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0509. TRUST INDENTURE. (a) District bonds, including revenue bonds, that are not payable wholly from ad valorem taxes may be additionally secured by a trust indenture. The trustee may be a bank with trust powers located inside or outside this state.

(b) A trust indenture, regardless of the existence of a deed of trust or mortgage lien on property, may:

(1) contain any provisions prescribed by the board for the security of the bonds and the preservation of the trust estate;

(2) provide for amendment or modification of the trust indenture;

(3) provide for the issuance of bonds to replace lost or mutilated bonds;

(4) condition the right to spend district money or sell district property on the approval of a licensed engineer selected as provided by the trust indenture; and

(5) provide for the investment of district money.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0510. INTERIM BONDS OR NOTES. Before issuing definitive bonds, the board may issue interim bonds or notes exchangeable for definitive bonds.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0511. USE OF BOND PROCEEDS. (a) The district may set aside an amount of proceeds from the sale of district bonds for the payment of interest expected to accrue during construction and a reserve interest and sinking fund. The resolution authorizing the bonds may provide for setting aside and using the proceeds as provided by this subsection.

(b) The district may use proceeds from the sale of bonds to pay any expense necessarily incurred in accomplishing the district's purpose, including the expense of organizing the district, engineering investigations, and issuing and selling the bonds.

(1) placed on time deposit with the district's depository bank; or

(2) temporarily invested in direct obligations of the United States maturing not later than the first anniversary of the date of investment.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0512. APPOINTMENT OF RECEIVER. (a) On default or threatened default in the payment of principal of or interest on district bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of outstanding bonds, appoint a receiver for the district.

(b) The receiver may:

(1) collect and receive all district income except taxes;

(2) employ and discharge district agents and employees;

(3) take charge of money on hand, except money received from taxes, unless commingled; and

(4) manage the district's proprietary affairs without the consent of or hindrance by the board.

(c) The receiver may be authorized to sell or contract for the sale of water or other services provided by the district or to renew those contracts with the approval of the court that appointed the receiver.

(d) The court may vest the receiver with any other power or duty the court finds necessary to protect the bondholders.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0513. REFUNDING BONDS. (a) The district may issue refunding bonds to refund outstanding bonds issued under this chapter and interest on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series and combine the pledges for the outstanding bonds for the security of the refunding bonds; and

(2) be secured by a pledge of other or additional revenue or mortgage liens.

(c) The provisions of this chapter regarding the issuance of other bonds, their security, and the remedies of the holders apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in a bank at which the bonds to be refunded were payable. In that case, the refunding bonds may be issued in an amount sufficient to pay the principal of and interest on the bonds to be refunded to their effective option date or maturity date, and the comptroller shall register the refunding bonds without the concurrent surrender and cancellation of the bonds to be refunded.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0514. LIMITATION ON RIGHTS. The resolution authorizing the bonds or the trust indenture securing the bonds may limit or qualify the rights of less than all of the outstanding bonds payable from the same source to institute or prosecute litigation affecting the district's property or income.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.

Text of section effective on April 01, 2027

Sec. 9092.0515. BONDS EXEMPT FROM TAXATION. District bonds, the transfer of the bonds, and the income from the bonds, including profits made on the sale of the bonds, are exempt from taxation in this state.

Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.03, eff. April 1, 2027.