    SPECIAL DISTRICT LOCAL LAWS CODE
    TITLE 6. WATER AND WASTEWATER
    SUBTITLE G. RIVER AUTHORITIES
    CHAPTER 8515.  UPPER GUADALUPE RIVER AUTHORITY
    SUBCHAPTER A.  GENERAL PROVISIONS

    Text of section effective on April 01, 2027
    Sec. 8515.0101.  DEFINITIONS.  In this chapter:(1)  "Authority" means the Upper Guadalupe River Authority.(2)  "Board" means the authority's board of directors.(3)  "Director" means a board member.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0102.  NATURE OF AUTHORITY.  The authority is a conservation and reclamation district in Kerr County created under Section 59, Article XVI, Texas Constitution.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  The authority is created to serve a public use and benefit.(b)  All property in the authority will benefit from the works and projects the authority will accomplish under the powers conferred by Section 59, Article XVI, Texas Constitution.(c)  The authority's creation is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.(d)  The authority 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 industries.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0104.  REVIEW SCHEDULE UNDER SUNSET ACT.  A review of the authority under Section 325.025, Government Code, shall be conducted as if the authority were a state agency scheduled to be abolished September 1, 2035, and every 12th year after that year.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0105.  TERRITORY.  (a)  The authority is composed of the territory described by Subsection (b) as that territory may have been modified under:(1)  Subchapter J, Chapter 49, Water Code;(2)  Subchapter O, Chapter 51, Water Code; or(3)  other law.(b)  The authority includes all territory in the boundaries of Kerr County.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0106.  CERTAIN STATUTES NOT APPLICABLE TO AUTHORITY.  (a)  The authority is created notwithstanding the provisions of Chapter 160, Acts of the 58th Legislature, Regular Session, 1963 (former Article 970a, Vernon's Texas Civil Statutes), as those provisions existed on June 17, 1965, and those provisions do not apply to the authority.(b)  Any conflict between this section and subsequent amendments to provisions described by Subsection (a) or the subsequent codification of provisions described by Subsection (a) in the Local Government Code is governed by the rules of statutory construction, including Sections 311.025(a) and 311.026, Government Code (Code Construction Act).
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    SUBCHAPTER B.  BOARD OF DIRECTORS; ADMINISTRATIVE PROVISIONS

    Text of section effective on April 01, 2027
    Sec. 8515.0201.  MEMBERSHIP OF BOARD.  (a)  The board consists of nine directors appointed by the governor.(b)  To be appointed as a director, a person must:(1)  be 18 years of age or older; and(2)  reside and own land in Kerr County.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0202.  TERMS.  Directors serve staggered four-year terms, with four or five directors' terms expiring on February 1 of each odd-numbered year.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0203.  REMOVAL.  (a)  It is a ground for removal from the board that a director:(1)  does not have at the time of taking office the qualifications required by Sections 8515.0201 and 8515.0205;(2)  does not maintain during service on the board the qualifications required by Sections 8515.0201 and 8515.0205;(3)  is ineligible for directorship under Chapter 171, Local Government Code;(4)  cannot, because of illness or disability, discharge the director's duties for a substantial part of the director's term; or(5)  is absent from more than half of the regularly scheduled board meetings that the director is eligible to attend during a calendar year without an excuse approved by a majority vote of the board.(b)  The validity of a board action is not affected by the fact that it is taken when a ground for removal of a director exists.(c)  If the general manager has knowledge that a potential ground for removal exists, the general manager shall notify the board president of the potential ground.  The president shall then notify the governor and the attorney general that a potential ground for removal exists.  If the potential ground for removal involves the president, the general manager shall notify the next highest ranking director, who shall then notify the governor and the attorney general that a potential ground for removal exists.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0204.  VACANCY.  The governor shall fill a vacancy on the board by appointing a person for the unexpired term.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0205.  OATH AND BOND REQUIREMENT FOR DIRECTORS.  (a)  Each director shall:(1)  take the constitutional oath of office; and(2)  execute a bond for $5,000, conditioned on the faithful performance of the director's duties.(b)  The authority shall pay the cost of the bond.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0206.  OFFICERS.  (a)  The governor shall designate a director as president to serve in that capacity at the will of the governor.  The president is the authority's chief executive officer and the board's presiding officer.(b)  The board shall elect from the board's membership a vice president, a secretary, and any other officers the board determines necessary.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0207.  VOTE BY 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. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0208.  ABSENCE OR INACTION OF 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 or general law confers on the president.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0209.  DUTY OF SECRETARY; ABSENCE OF SECRETARY FROM BOARD MEETING.  (a)  The secretary shall keep and sign the minutes of each board meeting and is the custodian of the authority's minutes and records.(b)  If the secretary is absent from a board meeting, the board shall name a secretary pro tem for the meeting who may:(1)  exercise all powers and duties of the secretary for the meeting;(2)  sign the minutes of the meeting; and(3)  attest all orders passed or other action taken at the meeting.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0210.  SEPARATION OF POLICY-MAKING AND MANAGEMENT FUNCTIONS.  The board shall develop and implement policies that clearly separate the board's policy-making responsibilities and the general manager's and staff's management responsibilities.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0211.  DIRECTOR TRAINING PROGRAM.  (a)  A person who is appointed to and qualifies for office as a director may not vote, deliberate, or be counted as a director in attendance at a board meeting until the person completes a training program that complies with this section.(b)  The training program must provide the person with information regarding:(1)  the law governing the authority's operations;(2)  the authority's programs, functions, rules, and budget;(3)  the scope of and limitations on the board's rulemaking authority;(4)  the results of the authority's most recent formal audit;(5)  the requirements of:(A)  laws relating to open meetings, public information, administrative procedure, and disclosing conflicts of interest; and(B)  other laws applicable to members of a river authority's governing body in performing their duties; and(6)  any applicable ethics policies adopted by the authority or the Texas Ethics Commission.(c)  A person appointed to the board is entitled to reimbursement for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.(d)  The general manager shall create a training manual that includes the information required by Subsection (b).  The general manager shall distribute a copy of the training manual annually to each director.  Each director shall sign and submit to the general manager a statement acknowledging that the director has received and reviewed the training manual.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0212.  GENERAL MANAGER.  The board shall appoint a general manager of the authority.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0213.  COMPLAINTS.  (a)  The authority shall maintain a system to promptly and efficiently act on complaints filed with the authority.(b)  The authority shall maintain information about the parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and the complaint's disposition.(c)  The authority shall periodically notify the parties to the complaint of the complaint's status until final disposition, unless the notice would jeopardize an investigation.(d)  The authority shall make information available describing the authority's procedures for complaint investigation and resolution.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0214.  PUBLIC TESTIMONY.  The board shall develop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the authority's jurisdiction.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    SUBCHAPTER C.  POWERS AND DUTIES

    Text of section effective on April 01, 2027
    Sec. 8515.0301.  GENERAL POWERS AND DUTIES.  (a)  The authority has the rights, powers, privileges, and duties provided by general law applicable to a water control and improvement district created under Section 59, Article XVI, Texas Constitution, including those provided by Chapters 49 and 51, Water Code.(b)  The authority may exercise the powers necessary to accomplish the rights and duties specified in Section 59, Article XVI, Texas Constitution, as provided by Chapters 51 and 54, Water Code.(c)  The authority may construct or acquire projects the board determines are needed and incident or related to the performance of the rights and duties described by Subsection (b).
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0302.  ADDITIONAL POWERS.  (a) The authority may:(1)  control, develop, store, and preserve the waters and flood waters of the Upper Guadalupe River and its tributaries inside or outside the authority for a beneficial or useful purpose;(2)  purchase, acquire, build, construct, improve, extend, reconstruct, repair, and maintain any dam, structure, waterworks system, sanitary sewer system, storm sewer system, drainage system, irrigation system, building, waterway, pipeline, distribution system, ditch, lake, pond, reservoir, plant, and recreational facility for public use, and any other facility or equipment in aid of a purpose described by Subdivision (1);(3)  purchase or otherwise acquire a necessary site, easement, right-of-way, land, or other property necessary for a purpose described by Subdivision (1); and(4)  sell water and other services.(b) The authority may use any practical means to exercise a right, power, privilege, or function of the authority.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0303.  CONSERVATION AND DEVELOPMENT.  The authority shall conserve and develop this state's natural resources in the authority.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0304.  COST OF RELOCATING OR ALTERING PROPERTY.  (a)  In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value derived from the old facility.(b)  If the authority's exercise of the power of eminent domain, police power, or any other power requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a railroad, pipeline, or electric transmission, telegraph or telephone line, conduit, pole, property or facility, the required action shall be accomplished at the authority's sole expense.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0305.  POWERS RELATING TO GRANTS AND CONTRACTS.  The authority may accept grants or contract with any person in connection with or in aid of the exercise of any right, power, privilege, or function of the authority.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0306.  POWERS RELATING TO WASTE FACILITIES.  As a necessary aid to the conservation, control, preservation, and distribution of the water of the Upper Guadalupe River and its tributaries for beneficial use, the authority may:(1)  construct, own, and operate sewage collection, transmission, and disposal services;(2)  charge for a service described by Subdivision (1); and(3)  enter into contracts with municipalities and others in connection with a service described by Subdivision (1).
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0307.  NOTICE OF ELECTION.  Notice of an election may be given under the hand of the president or secretary.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

    Text of section effective on April 01, 2027
    Sec. 8515.0401.  TAX METHOD.  The authority shall use the ad valorem plan of taxation.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0402.  DEPOSITORY.  (a)  The board shall select one or more banks or trust companies in this state to act as a depository of bond proceeds or of revenue derived from the operation of authority facilities.(b)  The depository shall, as determined by the board:(1)  provide indemnity bonds;(2)  pledge securities; or(3)  meet any other requirements.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0403.  PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.  The authority is not required to pay a tax or assessment on:(1)  an authority project or any part of the project; or(2)  an authority purchase.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    SUBCHAPTER E.  NOTES, BONDS, AND BORROWED MONEY

    Text of section effective on April 01, 2027
    Sec. 8515.0501.  REVENUE NOTES.  (a)  The board, without an election, may borrow money, not to exceed $55 million in the aggregate, on the authority's negotiable notes, payable solely from the authority's revenue derived from the ownership of all or any designated part of the authority's works, plant, improvements, facilities, equipment, or water rights after deduction of the reasonable cost of maintaining and operating the facilities.(b)  The notes may be first or subordinate lien notes at the board's discretion. An obligation may not be a charge on the authority's property or on the taxes imposed by the authority. An obligation may only be a charge on the revenue pledged for the payment of the obligation. No part of the obligation may ever be paid from the taxes imposed by the authority.(c)  The notes may bear interest at a rate not to exceed 10 percent and 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. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0502.  BORROWING MONEY.  The authority may borrow money by any method or procedure provided by this chapter or general law for a corporate purpose or combination of corporate purposes.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0503.  AUTHORITY TO ISSUE BONDS.  The authority may:(1)  issue bonds of any kind to carry out any purpose authorized by this chapter; and(2)  provide and make payment for the bonds and for necessary expenses incurred in connection with the issuance of the bonds.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0504.  EXCHANGING BONDS FOR PROPERTY OR WORK.  The authority may exchange bonds, including refunding bonds:(1)  for property acquired by purchase; or(2)  in payment of the contract price of work performed or materials or services provided for the authority's use and benefit.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0505.  BOND ELECTION; NOTICE.  (a)  Except as provided by Subsection (d), the authority may not issue bonds unless a majority of voters voting at an election held in the authority approve the issuance of the bonds.(b)  Before issuing bonds, the board must order an election and provide notice in accordance with this section.(c)  Notice of the election must be given by:(1)  posting a copy of the notice in at least three public places in the authority at least 14 days before the election date; and(2)  publishing a copy of the notice in a newspaper of general circulation in the authority at least once a week for two consecutive weeks, the first of which must be published at least 14 days before the election date.(d)  An election to authorize the issuance of bonds is not required if the bonds are payable from the revenue of an authority system or facility and the board determines that:(1)  the proceeds of the bonds will provide less than $2 million for the purpose of acquiring land or acquiring or constructing the facility, not including the cost of issuing the bonds, interest during construction, and any initial deposit from the proceeds to a reserve fund; and(2)  the bond proceeds will be used:(A)  to acquire land or an interest in land and to construct or acquire a new facility in the nature of a new project or undertaking for the authority, provided that only one series of bonds may be issued to provide for a new project or undertaking for the authority unless additional bonds are approved by a majority of voters voting at an election;(B)  to provide money for repairs, expansion, and improvement of existing authority facilities; or(C)  to provide for the completion of the construction of a project for which the authority has previously issued bonds approved at an election.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0506.  FAILED BOND ELECTION.  (a)  A general law, including Sections 51.781 through 51.791, Water Code, that provides for calling a hearing on the dissolution of a water control and improvement district after a failed district bond election does not apply to the authority.(b)  After the expiration of 30 days from the date of a failed bond election, the board may call a subsequent bond election.(c)  The authority continues to exist and have the authority's full power to function and operate regardless of the outcome of a bond election.
    Added by Acts 2025, 89th Leg., R.S., Ch. 203 (H.B. 1615), Sec. 1.02, eff. April 1, 2027.

    Text of section effective on April 01, 2027
    Sec. 8515.0507.  BONDS EXEMPT FROM TAXATION.  Bonds issued under this chapter, the transfer of the bonds, and 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. 1.02, eff. April 1, 2027.