1. (a) Bonds, as referred to in this subchapter include any bonds authorized to be issued by the Texas Water Code or special statute, and are represented by an instrument issued in bearer or registered form. This section does not apply to refunding bonds, and bonds issued to and approved by the Farmers Home Administration of the United States Department of Agriculture or the Texas Water Development Board, or successor agencies. This subchapter does apply to revenue notes to the extent described in §293.80(d) of this title (relating to Revenue Notes) and contract tax obligations to the extent described in §293.89 of this title (relating to Contract Tax Obligations).
2. (b) The commission has been given the statutory responsibility to approve projects relating to the issuance and sale of bonds for districts as defined in Water Code, §49.001(1) and other districts where specifically required by law.

3. (c) This subchapter does not apply to a district if:

   1. (1) the boundaries include one entire county;

   2. (2) the district was created by special act of the legislature; and

      1. (A) the district is located entirely within one county and entirely within one or more home-rule municipalities;
      2. (B) the total taxable value of the real property and improvements to the real property zoned by the one or more home-rule municipalities for residential purposes and located within the district does not exceed 25% of the total taxable value of all taxable property in the district, as shown by the most recent certified appraisal tax roll prepared by the appraisal district for the county; and
      3. (C) the district was not required by law to obtain commission approval of its bonds before September 1, 1995;
   3. (3) the district is a special water authority as defined by Water Code, §49.001(8); or
   4. (4) the district is governed by a board of directors appointed in whole or part by the governor, a state agency, or the governing body or chief elected official of a municipality or county and does not provide, or propose to provide, water, wastewater, drainage, reclamation, or flood control services to residential retail or commercial customers as its principal function.

Source Note:The provisions of this §293.41 adopted to be effective October 22, 1996, 21 TexReg 9905; amended to be effective June 5, 1998, 23 TexReg 5715.