CHAPTER 601. MUNICIPAL AUTHORITY RELATING TO PARKING - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 14. PARKING AND TRANSPORTATION

SUBTITLE A. MUNICIPAL PARKING PROVISIONS

CHAPTER 601. MUNICIPAL AUTHORITY RELATING TO PARKING

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 601.001. PARKING ON PRIVATE PROPERTY. A municipality by

ordinance may regulate the parking of motor vehicles on private

property and may enforce the ordinance in the same manner that it

enforces ordinances regulating parking in public no-parking

zones, including the impoundment of offending vehicles.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.001 by Acts

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

885, Sec. 3.76(d)(1), eff. April 1, 2009.

SUBCHAPTER B. MUNICIPAL PARKING AUTHORITIES

Sec. 601.021. DEFINITIONS. In this chapter:

(1) "Authority" means a parking authority created under this

subchapter.

(2) "Board" means the governing body of an authority.

(3) "Bond" means a note, bond, or other evidence of indebtedness

or obligation issued by an authority.

(4) "Construction" includes acquisition.

(5) "Deed of trust" means a deed of trust, indenture, or other

similar agreement.

(6) "Federal agency" means the United States, the president of

the United States, or a department, corporate agency, or

instrumentality of the United States.

(7) "Improvement" includes extension and enlargement.

(8) "Parking facility" means a public lot, garage, parking

terminal, or other structure or accommodation for the parking of

motor vehicles off the street or highway, and includes equipment,

entrances, exits, fencing, and other accessories necessary for

safety and convenience in the parking of vehicles.

(9) "Project" means a structure, facility, or undertaking of an

authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.021 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.022. CREATION OF AUTHORITY. (a) The governing body of

a municipality by ordinance may create an authority, which shall

be called "City of (name of municipality) Parking Authority."

(b) A notice, including the text of the ordinance creating the

authority, a synopsis of the articles of incorporation of the

authority, and a reference to this subchapter, must be published

once weekly for four consecutive weeks in a newspaper of general

circulation in the municipality. The municipality shall file the

ordinance with the secretary of state within 10 days after the

date of the passage of the ordinance.

(c) The ordinance takes effect 60 days after the date of its

last publication unless a protest petition has been filed with

the clerk of the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.022 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.023. PROTEST PETITION. (a) A protest petition must

object to the adoption of the ordinance creating an authority and

request that the ordinance be submitted to the voters of the

municipality. It must be signed by a number of registered voters

of the municipality equal to at least 10 percent of the number of

votes cast at the most recent general municipal election.

(b) If a petition is filed, the municipality must determine

whether the petition is valid within 10 days after the date of

filing.

(c) The governing body of the municipality shall call an

election to submit the ordinance to a vote on the next uniform

election date authorized by Chapter 41, Election Code, that

occurs more than 30 days after the date the municipality verifies

the petition is valid.

(d) If a majority of the votes cast at the election are in favor

of the ordinance, it takes effect on the certification of the

results. If a majority of the votes cast are against the

ordinance, it does not take effect.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.023 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.024. COMPOSITION OF BOARD. (a) The powers of an

authority are exercised by a board composed of five members who

must be residents of the municipality.

(b) The presiding officer of the governing body of the

municipality shall appoint the members of the board for two-year

staggered terms.

(c) The terms of two members shall expire on July 1 of each

even-numbered year and the terms of three members shall expire on

July 1 of each odd-numbered year.

(d) The board members shall select from among themselves a

chairman, a vice-chairman, and other officers as they determine.

(e) A vacancy that occurs more than 60 days before the

expiration date of a term shall be promptly filled for the

unexpired term by appointment by the presiding officer of the

governing body of the municipality.

(f) A board member may be removed for cause following a hearing.

Removal is by order of the presiding officer of the governing

body of the municipality, with the concurrence of two-thirds of

the members of the governing body of the municipality.

(g) An appointment must be confirmed by the governing body of

the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.024 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.025. COMPENSATION AND LIABILITY. (a) A board member

may not receive compensation for services as a member but is

entitled to payment for the necessary expenses incurred in the

discharge of duties as a member.

(b) A board member is not liable personally on the bonds of an

authority, and the rights of creditors are solely against the

authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.025 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.026. POWERS OF BOARD. (a) The board manages the

property and business of the authority.

(b) The board may adopt bylaws and rules governing the manner in

which the business of the authority is conducted.

(c) The board may employ a secretary, an executive director,

legal staff, technical experts, and other agents and employees

that it requires. It may determine the qualifications and fix the

compensation of those persons.

(d) The board may delegate to an agent or employee powers as it

considers necessary to carry out the purposes of this subchapter,

and the agent or employee is subject to the supervision and

control of the board.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.026 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.027. POWERS OF AN AUTHORITY. (a) An authority may:

(1) construct, improve, maintain, repair, or operate a project;

(2) conduct research necessary for efficient operation of a

parking facility;

(3) establish a permanent coordinated system of parking

facilities;

(4) plan, design, locate, hold, construct, improve, maintain,

operate, own, or lease land and facilities for the parking of

vehicles;

(5) sue and be sued, implead and be impleaded, and complain and

defend in court;

(6) adopt, use, and alter a corporate seal;

(7) acquire, purchase, hold, lease as lessee, or use a

franchise, property, or an interest in property, as necessary or

desirable for carrying out the purpose of this subchapter;

(8) sell, lease as lessor, exchange, transfer, or dispose of

property or an interest in property;

(9) contract and execute instruments necessary or convenient to

carry on its business;

(10) borrow money, accept a grant, and enter into a contract,

lease, or other transaction with a federal agency, the state, a

municipality, a corporation, or another authority;

(11) exercise the power of eminent domain;

(12) pledge, hypothecate, or otherwise encumber the revenue or

receipts of the authority as security for the obligations of the

authority;

(13) enter into a contract of group insurance for the benefit of

its employees and set up a retirement or pension fund for the

employees;

(14) on consent of the municipality, use an appointed officer,

agent, employee, and facility of the municipality and pay the

municipality for the use;

(15) dedicate its real property to the public purposes for a

street or highway;

(16) invest that part of the proceeds received from the sale of

bonds or other funds that the authority considers available in

direct obligations of the United States; and

(17) act as necessary to accomplish its purpose, the promotion

of its business, and its general welfare.

(b) An authority may not pledge the credit or taxing power of

the state or a political subdivision of the state. The

obligations of an authority are not the obligations of the state

or a political subdivision of the state. The state or a political

subdivision of the state is not liable for the payment of the

principal of or interest on the obligations.

(c) An authority may not sell goods or provide services other

than those necessary for the parking of vehicles in a facility of

the authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.027 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.028. CHARGES FOR USE OF FACILITY. (a) An authority

may collect charges for the use of its facility at reasonable

rates determined by the authority for the purpose of paying the

expenses and obligations of the authority.

(b) A person questioning the reasonableness of a rate or charge

of the authority may bring suit against the authority in a

district court in the county in which the project is located.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.028 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.029. FINANCING; BONDS. (a) In addition to bonds

provided for by this subchapter, an authority, subject to the

specific authorization and approval of the municipality creating

it, may finance the creation and establishment of parking

facilities by one or more of the following methods:

(1) parking fees or special charges derived from the use of

parking facilities;

(2) general fund appropriation;

(3) parking meter revenue; and

(4) a gift, bequest, devise, or grant-in-aid.

(b) A municipality establishing an authority under this

subchapter, on a two-thirds vote of its governing body, may pay

to the authority money necessary to:

(1) acquire all or part of the land on which the authority

intends to erect a parking facility;

(2) construct all or part of a parking facility;

(3) pay operating expenses of the authority and debt service on

outstanding bonds of the authority; or

(4) make payments into a reserve fund for the payment of the

principal of and interest on indebtedness of the authority, as

may be provided by a resolution of the authority authorizing the

issuance of revenue bonds or a trust indenture securing revenue

bonds.

(c) A municipality, to provide funds for use under Subsection

(b) of this section, may issue general obligation bonds, secured

by the faith and credit of the municipality, payable from

unlimited ad valorem taxes on all of the real estate in the

municipality subject to taxation, and may levy those taxes in an

unlimited rate or amount.

(d) A municipality may guarantee revenue bonds of the authority

issued under this subchapter by pledging its full faith and

credit to the payment of the principal of and interest on the

revenue bonds. The aggregate amount of general obligation bonds

issued by a municipality under this subsection, the indebtedness

guaranteed, and the taxes levied are in addition to, and not

subject to the limitations of, the statutory debt or tax

limitation of the municipality. The municipality may fund the

guarantee by levying an ad valorem tax on real estate subject to

taxation, not to exceed a rate of one-hundredth of one percent,

or may use other money of the municipality available for this

purpose.

(e) An agreement by a municipality to guarantee the revenue

bonds of the authority, to maintain a reserve fund, or to pay

debt service or operating expenses of the authority may be

included in a contract with holders of revenue bonds of the

authority and may be pledged by the authority to the payment of

the revenue bonds.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.029 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.030. REVENUE BONDS. (a) An authority by resolution

may issue revenue bonds to finance a parking facility, the

acquisition, construction, reconstruction, and repair of property

related to the facility, and the necessary expenses of financing

the facility and its operations.

(b) The total principal amount of the revenue bonds outstanding

at one time may not exceed $20 million.

(c) As provided by the board before the issuance of revenue

bonds, the bonds:

(1) must be dated, must bear interest at a rate, and must mature

at a time not to exceed 25 years from the date of their issuance

and not to extend beyond the existence of the authority; and

(2) may be made redeemable before maturity at a particular price

and under particular terms.

(d) The board shall determine the form of the revenue bonds,

including interest coupons, if any, and the manner of execution

of the bonds. The board shall fix the denomination of the bonds

and the place of payment of principal and interest, which may be

at a bank or trust company in the state.

(e) The revenue bonds are negotiable instruments under state law

and may be sold in the manner and for the price determined to be

in the best interests of the municipality.

(f) The revenue bonds are not a pledge of the faith and credit

of a municipality or the state but are payable only from revenues

under this subchapter. The face of the bonds must state this.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.030 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.031. RESOLUTION AUTHORIZING ISSUANCE OF REVENUE BONDS.

(a) A resolution authorizing issuance of revenue bonds must

pledge the revenues to be received from the parking facility for

which the bonds are issued. The resolution may pledge parking

meter revenues for this purpose and may provide for mortgaging

the parking facility as additional security. The resolution may

contain other provisions for protecting and enforcing the rights

and remedies of a bondholder as permitted by this subchapter and

may contain a limitation on the issuance of additional revenue

bonds as the board considers proper.

(b) An expense incurred in carrying out the provisions of the

resolution may be treated as a part of the cost of operation of

the facility.

(c) The resolution may contain provisions, which if in the

resolution must be included as part of the contract with a

bondholder, relating to:

(1) the construction, improvement, operation, maintenance, and

repair of a project and to the authority's duties regarding those

actions;

(2) limitations on the purpose for which the proceeds of the

revenue bonds or of a loan or grant from a federal agency may be

used;

(3) the rate of a toll and other charge for use of a facility of

the authority or a service provided by the authority;

(4) the setting aside, regulation, and disposition of a reserve

or sinking fund; and

(5) any other agreement with the bondholder.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.031 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.032. DEED OF TRUST. An authority may enter into a deed

of trust as security for revenue bonds and may assign and pledge

all or part of the revenues or receipts of the authority under

the agreement. The deed of trust may contain provisions relating

to:

(1) the construction, improvement, operation, maintenance, and

repair of a project and to the authority's duties regarding those

actions;

(2) the application and safeguarding of funds under the control

of the authority;

(3) the rights and remedies of the trustee and bondholders,

including a restriction on a right of action of bondholders; and

(4) terms of the revenue bonds or the resolution authorizing

their issuance.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.032 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.033. PLEDGED CONTRACT. (a) A contract between the

municipality and an authority may be pledged by the authority to

secure its bonds. A pledged contract may not be modified except

as provided by the terms of the pledge. The governing body of the

municipality may authorize the contract without further

authorization.

(b) A payment required by the municipality under the contract

may be made even if the payment is not provided for in the budget

of the municipality, but the payment shall be included in

subsequent budgets of the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.033 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.034. RIGHTS AND REMEDIES OF BONDHOLDER. (a) The

rights and remedies of a bondholder under this section are in

addition to any rights and remedies lawfully granted to the

bondholder by a resolution providing for the issuance of bonds or

by a deed of trust under which bonds are issued.

(b) If an authority fails to pay the principal of or interest on

a bond on or before the 60th day after the date payment is due,

violates this chapter, or breaches another agreement with a

bondholder, the holders of 25 percent of the aggregate principal

amount of the bonds outstanding may appoint a trustee to

represent the bondholders. To appoint a trustee, the bondholders

must file in the office of the recorder of deeds of the county in

which the authority is located an instrument that is proved or

acknowledged in the same manner as required by law for a deed to

be recorded.

(c) The trustee appointed under this section or a trustee under

a deed of trust under this subchapter may, and on written request

of the holders of 25 percent of the aggregate principal amount of

the bonds outstanding, unless provided otherwise by the deed of

trust, shall, in the trustee's own name:

(1) bring an action to enforce the rights of the bondholders;

(2) bring suit on the bonds;

(3) require the authority to account as if it were the trustee

of an express trust for the bondholders; or

(4) sue to enjoin violations of law or the rights of the

bondholders.

(d) By notice in writing to the authority the trustee may

declare bonds due and payable. If the authority cures all

defaults, the trustee, with the consent of the holders of 25

percent of the aggregate principal amount of the bonds then

outstanding, unless provided otherwise by the deed of trust, may

rescind the declaration.

(e) A district court in the county in which the authority is

located has jurisdiction of an action by the trustee. A trustee

appointed or acting under a deed of trust is entitled to the

appointment of a receiver, who may enter and take possession of

all or part of the facilities of the authority and the revenues

or receipts that may be applicable to the payment of the bonds in

default, and who may operate and maintain the facilities and

collect and receive rent and other revenues of the facilities.

The receiver shall deposit the money in a separate account and

apply it in the manner the court directs. In an action by the

trustee, any fees, attorney's fees, and expenses of the trustee

and the receiver and the costs and disbursements allowed by the

court are a first charge on the revenues and receipts from the

facilities of the authority that are applicable to the payment of

the bonds in default. The trustee may exercise the powers

necessary or appropriate for carrying out the trustee's functions

under this section or incident to the general representation of

the bondholders in the enforcement and protection of their

rights.

(f) This subchapter does not authorize a bondholder or a

receiver or trustee appointed under this subchapter to sell,

assign, mortgage, or otherwise dispose of the assets of the

authority. A receiver may only operate and maintain the

facilities of the authority as the court directs.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.034 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.035. BONDS EXEMPT FROM TAXATION. Revenue bonds issued

under this subchapter, transfer of the bonds, income from the

bonds, and a profit made on the sale of the bonds are free from

taxation by the state or a subdivision of the state.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.035 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.036. ELIGIBILITY FOR INVESTMENT. (a) A bond is a

security in which a public officer or body of the state or a

municipality or municipal subdivision, insurance company, bank,

trust company, savings and loan association, or investment

company may invest.

(b) A bond is not eligible for the investment of funds of a

trust, estate, or guardianship under the control of an individual

fiduciary.

(c) A bond may be deposited with a public officer or body of the

state or a municipality or municipal subdivision for any purpose

for which a bond of the state may be deposited.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.036 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.037. MONEY. Money of an authority shall be paid to the

treasurer of the authority who shall deposit it in a separate

account in a bank or trust company. The money may be paid out on

the warrant or other order of the chairman of the authority or of

another person designated by the authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.037 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.038. EXAMINATION OF ACCOUNTS. (a) At least once a

year, the authority shall have a certified public accountant

conduct an audit of its books, accounts, and other records. A

copy of the audit shall be delivered to the municipality creating

the authority.

(b) If the authority fails to make the required audit, an

auditor or accountant designated by the municipality may examine,

at the expense of the authority, the accounts and books of the

authority, including its receipts, disbursements, contracts,

leases, sinking funds, investments, and other matters relating to

its finances, operation, and affairs.

(c) The attorney general may examine the books, accounts, and

other records of an authority.

(d) A concise financial statement shall be published annually in

a newspaper of general circulation in the municipality in which

the principal office of the authority is located. If the

publication is not made by the authority, the municipality shall

publish the statement at the expense of the authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.038 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.039. CONVEYANCE OF PROPERTY. (a) The municipality, by

resolution or an instrument authorized by a resolution, may

convey property to an authority for use in a project.

(b) The legal title to real property conveyed remains with the

municipality, but the authority may, until it ceases to exist,

use the property.

(c) Legal title to personal property conveyed passes to the

authority.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.039 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.040. ACQUISITION OF REAL PROPERTY. (a) The

municipality may acquire real property for a project or for

building or improving a road leading to a project.

(b) The municipality may close a road as is necessary or

convenient for the purposes of this subchapter.

(c) An authority may, at its own expense, acquire real property

for a project in the name of the municipality by purchase or

condemnation under the laws relating to the condemnation of land

by the municipality. The authority may, until it ceases to exist,

use the property.

(d) If an authority determines that real property is no longer

required for a project, and the property was acquired at the

expense of the municipality, the authority may give the use of

the property to the municipality. If the property was acquired at

the expense of the authority, the authority may sell, lease, or

otherwise dispose of the property and may use the proceeds for

the purposes of this subchapter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.040 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.041. TAX-EXEMPT STATUS. Unless otherwise specifically

provided by statute or in the ordinance or resolution creating an

authority, property of an authority is exempt from taxation.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.041 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.042. CONTRACTS. An authority shall let a contract in

the manner, to the extent practicable, provided by law for

contracts of the municipality, except that if the estimated

expense of a contract does not exceed $5,000, the contract may be

entered into without public bidding.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.042 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.043. NOTICE OF CLAIM. (a) In an action against an

authority for damages, injury to property, or personal injury or

death, a person making a claim shall notify the authority of the

claim, reasonably describing the damage or injury and stating the

time, manner, and place of the incident from which the claim

arose. The notice must be given within six months after the date

of the incident.

(b) Notice need not be given if an authority has actual notice

of the damage or injury.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.043 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.

Sec. 601.044. DURATION. (a) An authority ceases to exist 25

years after the date it is created, except that the municipality

that created the authority may extend its existence for not more

than 10 years by filing a certified ordinance with the secretary

of state.

(b) An authority continues to exist until its liabilities and

bonds issued by its board or by the municipality on its behalf

have been paid.

(c) When an authority ceases to exist, its rights and property

pass to the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Renumbered from Local Government Code, Section 431.044 by Acts

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

885, Sec. 3.76(d)(2), eff. April 1, 2009.