Case Information

*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS

AUSTIN

Eonorablo 8holby It. Long

county At tornoy

Jotforron County Bemmont, Toxu rubmitted in your lottor r0ii0ving questions:

of March 7 La whl o Independent School 08 Valley Authority 8 for Intero~t votorr of Rorodalo Independent uthorlze a tax rata r0r Local ntoremt and Slnklrq Fund ln 1.00 per hundred v8luatlon?”

Art. VIII, 3ec. 2, Conatltutlon of Taxma, provider “tho Loglrlatun may, by general 18.~1, exppt from taxa- tion pub110 property used for pub110 purporos. Art. 7150, V.A.C.S., provldom as rollowl *2 gononble Shelbf 1;. Long, Page 2 "Tho r0ii0ving proporty rhll be l xampt rroai

tax*t10n, to vltr

'48. Dlatrlota 8nd Authorltl88, propert ori papnonta in lieu kxoa.--All reual or property person81 belongIng 8xolurirel to DZatrlata 8nd Authoritlra oreatod dlnotl g$ A0t8 or th0 1sg18- lbtun purawmt to Art1010 , 8ootloa 59, 0r the Conatltutlon as 8genoloa the st8t* TOX88, and 811 property real or peraorml belonglag l xolu8Irol~ to DIatrIota 8nd Authoritloa oreatod or inoorporatod under l8vr l a8otod pursuant to Sootlon Artiolo XVI or the Conatitutlonj provided Ii 84 ruch District or Authority ha heretofore 8oqulred or dooa hereafter aoqulra propertf vhlah at time of such acquisition Is or ~88 then rubjoot to tax- ation, la at tho time OS Its 8oqulaltlon be3ng used for gonezwting, tr8namlttlng, 8nd di8trlbutIng electrIo energy or pover, auah Dlatrlot or Author- ity ah811 at the tlmea preaorlbed by kv for the payment of 8d valorem hxea make pawont in lieu taxes to tho St8t.8 Tex88 8nd to tho oounty, city, and such taxing districts vlthla vhloh such property la altustodj such p8ymont la llou of tax08 be ln tho amount vhlch would be re8lIxod by lovy- lng an ad valorer tax 8t the current rate for tho then current t8x year b8aod on tho 8aaoaaed veluo or auoh property for tho last ourrent kx rear be- tore bolng aoquired by such Dlatrlot or Authority; provided firthor that no payment ah811 b8 mado vlth reapeot to 84 property no longer ovnod uah Dla- trlot Authorit ior gonerating, tranamltting, or dlatrlbutlng lootrlo aorgy povor. Suoh payment la lieu or tax08 shall be made out or tho revenues reoelved 61 uah DIatrIct or Authorltf from the gen- emtlon, tnnaatlaalon, or dIatrlbutloa lootrlo povor and energy 8nd tho llablllt~ ror 88me ah811 oonatltuto 8 lion or enoumbnnoe only on the ROYO- nuea of such Dlatrlot or Authority, 8nd ah811 bo oonaldored as 8 part of the opentlng xponaear SpeoIflo8lly, no paymeats ah811 be mdo In 110~ of taxoa with r8apeot to d8m8, dam altea, reaervolr areas, md vater dlatrlbutlng or lrrlg8tloa systema. It la the oxpressed leglal8tlvo lntrat of thIa Act th8t auoh Dlatrlota or Authorltler make paPent in *3 ~onor8ble Shelbr I. Long, P@JJO

lieu of tux88 only vlth reapeot to proporti88 vhloh 8t th8 tim0 Of their 8O~UiSitiO~ VOrO OD ad V@lOrOm kx rolls 0r the Stat0 0r Foxes or 84 oouatf, oltr, or 84 other bx%ng Dla- trlot of tho 8kto of Toxea 8ad vhloh 8t tho tlmo or the oqulaltIan vore being uaod ror gen- r8tlng, tr8namIttlng, dlatrlbutIag leotrlo pover and ener J prorldod furthor it la the rxpreaard oglaletlve latent tht no paymonta F ah811 be umde in lieu of kxea vlth reapeot to reao rvoir l rO@S~ vetor dla- dams, dam altee, trlbuting Irrigation apatomal; belonging to 8ny uah Authority or District.

Tho Lover feohea Valley Authority Is a governmental @genOJ, body polltIo lrnd corporate crwted under hrt. XVI, Sec. 59, constitution of Toxaa, end tho Enabling Aot of tho LegIal8turo puraunnt thereto, eppwriag Aotr 1933, 43rd p. 169, Ch. 63, as amended by Acts 1934, 43ti

y& ;*p, E::: Ch. 17, end Acts 1941, 47th Leg., R.S., Ch. 570. This k&lment, known as the 'Conarrvetlon Am8ndmentw provldoa for the creation of conaervatlon end reo1amatIon dia- trlcta as rollova: %O. 598. Th8 oonaervetIon end dovolopment tho aatur81 resources this state, in-

cluding th8 aontrol, @torIng, preaorvbtlon and dia- trlbutlon of Its storm end flood vatora, the vatora Its rlmra end atroams, ror lrrIg8tlon, povor 8ad all other uaoful purpoaear the real8amtIon IrrIg8tIon of Its aria, semi-arid &ad othor lands nO@ding lwig8tIon, the reoluaetion drrirmge or Its overflovod lands, end other l8nda noodlng dreIn8ge, the oonsorvatlon 8nd devolopent of its forests, vater and hTdro-el8otrlo povor, tho nevl- getion of Its Inland 8nd ooaatal vatora, end the preservation 8nd oonaorvation of 811 such nrrturol reaourcoa Or the Stat0 8rY each md 811 hereby da- c&red pub110 rights ad dutioaJ 8nd the &gIal8- ture ah811 p8aa 811 auoh lava es m8y be pproprleto thereto;

“(b) FhOFO -7 b0 OIW@tOd V1th.b th0 6t8tO Of Texas, tho State 887 be divided into, uoh nuaher *4 %ononble Shelby II. Low, Page

of oonaorwtlon reol8amtIon dlatrlota es m8~ b8 dotoninod to bo 8880ntl81 to the ecaom- pllalnont or the purpoaoa of this uendmont to tho oonatltutlon, vhloh dlatrIot ah811 bo govem- B@liit@l 8~OnOiOS and bodies VOlitiO 8nb Oomolr.to vlth uoh Dover8 govornmont 8nd vith the U- thorlty to xorolao such right , D 1 11 g d ?unctlona oonoernlng tho l ubJo:t Jt’lor’o:‘t& amendment es a8y be oonrorred by 18V.” (Ebpha- ala 8ddOd.J

tie bovo olted act cn@tIng tho Lover Iechoa Val- ley Authority deolaroa In Seotlon 1 thOA-@Or the nature 8nd purposes the authority to be es rollovar

“sot. 1. There ah811 be and la hemby ore8tod 8 oonaorv8tIon 8nd reol8mation district by the name of vhloh dlatrlot 'Lover Iechoa Valley Authority',

Is oreeted 8 a 8 governmental

agency, body politic and corpor8te. Vested vlth all the authority es auoh under the Constitution and Lava of this State1 and vhloh shall hove and be reoognlxed to oxeroIae 811 the pcvera or auoh govermont 8gency and body polltlo end oorporete as Lre expressly euthorlsed in the pro- visions of tho Constitution, Sootion 59 OS Ar- tlolo for dIatrIota oreeted to conserve, store, oontrol, proserve, utilize end distribute the atom end flood vatera end the vetera the rivers end streams ot th8 State, 8nd uah povera es MJ bo oon- templ8tod end Implied tho purposes of this pro- vision tho Constitution, end es m8y be conferred by Oenoral l~v, well es by tho provIaIona of this Aat, l xoopt nothing herein contalnod shall uthorlze a8ld district to levy 8ny kxoa or ape- cl.81 eaaoaamenta, or to areato dobt papablo out t.ax8tIon; 8nd said dlatrlot ah811 h8ve 8nd be reoagnlzed to exeraiae 811 tho rights 8nd povora Or en Independent gov8rnmont8l egonay; body poll- tlo end oorporato, oonatruot, a185.ntaI.n oper- *to, In the velloya the Roohea River 8nd Its trlbutarloa, vlthln vlthout tho bound8rIoa of *5 gonorable Shelby K;. Low, two 5

auoh dir trio t , 84 end 811 works deemed oaaen- tl81 to th0 operetlon Of tho dlatriot 8nd for Its l dminlat~tlon in the oontrol, storing, preservation 8nd dlatrlbution 811 uao~l purposes of tho ntora of the Hoohoa River 8nd its tribukry l treuo, InoludIng the atom end ri00d V8tOPS l uoh dlatpiot ah811 tbOZWOfJ hve 8nd be reoognlaod to ex8rOIae auoh euthor- Itr and powr of ooatrol 8x4 regul8tlan over uah vatora of the Noohea Jilvor 8nd ltr tribu- tmloa es ai8f k xorolaed br the Skto of Toxea, ubjeot to tho provisions of tho Conrtitutlon @Ad the’ Acts the LegIal8turo.”

In the light tha roNgoIng oonatItutlOMl statutory provisions tho conclusion Is laoaoap8blo that the Lover lecher Valley Authorlt~ Is 8n Authority oreetod dlreat- ly mot oi the l&glalaturo puraurnt to Artlole NL, Section the Conatltutlon en genoy the St8te Toxra vlthin the tax eraptlon V.A.C.B., 8nd oonaoquontly OXempt fPOaI t8X8tlOn iOr 10~81 granted In Art. 7150, Bubdlv. &L, 8aIntenanoo end for Interest and aInkIng fund on outstandIng bonded lndobtedneaa of Roaodelo Independent Sohool Dlatrlot. Since you at8to that none of th8 property of tho Authority v8a et the time oi Its aaquIaItlon being uaod for genozwtlng, dlatributlng loatrlc energy pover, the transmitting, Authority is not obllgetod by bubdlv. 48, Art. 7150, V.A.C.S., to rke paymonta in lieu of taxoa to tho rohool district, but Is l pecirlo8ll~ l xompt thermwf8 by the r0110ving 18ngu8ge: is 8xpreaaed legislative titont that no prysent at3811 “It be made In lieu of taxoa vlth reapoot to d8ma, d8m sites, re- lrrIg8tlon l ~atema, aonol~ areas, upd v8tor dIatrlbutIng belonging to 8zir auoh uthorlt~ or Dirtriot." Tour questions one and tvo en therotore enavered In the 8rriXWttiVO.

WO 8LY onclosing 8 oopy Of Opinion HO. 0-5433 vhloh

dlapoaoa of pur third question.

Veq truly yours ATTORFIEY OEKRRAL OF !JEXAS hgan Dlokaon Aaalaknt .--,