OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Eonorablo 8holby It. Long
county At tornoy
Jotforron County
Bemmont, Toxu
rubmitted in your lottor
of March 7 La whl r0ii0ving questions:
o Independent School
08 Valley Authority
8 for Intero~t and
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
that “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
gononble Shelbf 1;. Long, Page 2
"Tho r0ii0ving proporty rhll be lxampt rroai
tax*t10n, to vltr
'48. Dlatrlota 8nd Authorltl88, propert ori
papnonta in lieu 0r kxoa.--All property reual or
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 0r the st8t* 0r TOX88, and
811 property real or peraorml belonglag lxolu8Irol~
to DIatrIota 8nd Authoritloa oreatod or inoorporatod
under l8vr la 8o to pursuant
d to Sootlon 59, Artiolo
XVI or the Conatitutlonj provided that Ii 84 ruch
District or Authority ha heretofore 8oqulred or
dooa hereafter aoqulra propertf vhlah at the time
of such acquisition Is or ~88 then rubjoot to tax-
ation, and 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 8 pawont in lieu
0r taxes to tho St8t.8 0r Tex88 8nd to tho oounty,
city, and such taxing districts vlthla vhloh such
property la altustodj such p8ymont la llou of tax08
to 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 by luah Dla-
trlot or Authorit ior gonerating, tranamltting, or
dlatrlbutlng llootrlo laorgy or povor. Suoh payment
la lieu or tax08 shall be made out or tho revenues
reoelved 61 luah DIatrIct or Authorltf from the gen-
emtlon, tnnaatlaalon, or dIatrlbutloa or llootrlo
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 lxponaear
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
~onor8ble Shelbr I. Long, P@JJO
3
lieu of tux88 only vlth reapeot to proporti88
vhloh 8t th8 tim0 Of their 8O~UiSitiO~ VOrO OD
the ad V@lOrOmkx rolls 0r the Stat0 0r Foxes
or 0r 84 oouatf, oltr, or 84 other bx%ng Dla-
trlot of tho 8kto of Toxea 8ad vhloh 8t tho
tlmo or the loqulaltIan vore being uaod ror gen-
lr8tlng, tr8namIttlng, or dlatrlbutIag lleotrlo
pover and ener J prorldod furthor that it la
the rxpreaard Foglaletlve latent tht no paymonta
ah811 be umde in lieu of kxea vlth reapeot to
dams, dam altee, r ea o r volirrO@S~ and vetor dla-
trlbuting or Irrigation apatomal; belonging to
8ny luah 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 es Aotr 1933, 43rd
y& ;*p, p. 169, Ch. 63, as amended by Acts 1934, 43ti
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
0r 811 0r tho aatur81 resources 0r this state, in-
cluding th8 aontrol, @torIng, preaorvbtlon and dia-
trlbutlon of Its storm end flood vatora, the vatora
0r Its rlmra end atroams, ror lrrIg8tlon, povor
8ad all other uaoful purpoaear the real8amtIon and
IrrIg8tIon of Its aria, semi-arid &ad othor lands
nO@ding lwig8tIon, the reoluaetion end 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 lpproprleto
thereto;
“(b) FhOFO-7 b0 OIW@tOdV1th.b th0 6t8tO Of
Texas, or tho State 887 be divided into, luoh nuaher
%ononble Shelby II. Low, Page 4
of oonaorwtlon end 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~OnOiOSand bodies VOlitiO 8nb Oomolr.to
vlth luoh Dover8 0r govornmont 8nd vith the lU-
thorlty to lxorolao such right , D 1 11 g d
?unctlona oonoernlng tho l
u b Jo :t
Jt’lor’o:‘t&
amendment es a8y be oonrorred by 18V.” (Ebpha-
ala 8ddOd.J
tie lbovo olted act cn@tIng tho Lover Iechoa Val-
ley Authority deolaroa In Seotlon 1 thOA-@Orthe nature 8nd
purposes 0r the authority to be es rollovar
“sot. 1. There ah811 be and la hemby
ore8tod 8 oonaorv8tIon 8nd reol8mation district
by the name of 'Lover Iechoa Valley Authority',
vhloh dlatrlot 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 0r 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 16, for dIatrIota oreeted to conserve, store,
oontrol, proserve, utilize end distribute the atom
end flood vatera end the vetera 0r the rivers end
streams ot th8 State, 8nd luah povera es MJ bo oon-
templ8tod end Implied by tho purposes of this pro-
vision 0r tho Constitution, end es m8y be conferred
by Oenoral l~v, es well es by tho provIaIona of
this Aa t, lxoopt nothing herein contalnod shall
luthorlze a8ld district to levy 8ny kxoa or ape-
cl.81 eaaoaamenta, or to areato 84 dobt papablo
out or 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, to oonatruot, a185.ntaI.nand oper-
*to, In the velloya or the Roohea River 8nd Its
trlbutarloa, vlthln or vlthout tho bound8rIoa of
549
gonorable Shelby K;. Low, two 5
auoh dir triot, 84 end 811 works deemed oaaen-
tl81 to th0 operetlon Of tho dlatriot 8nd for
Its ldminlat~tlon in the oontrol, storing,
preservation 8nd dlatrlbution to 811 uao~l
purposes of tho ntora of the Hoohoa River 8nd
its tribukry ltreuo, InoludIng the atom end
ri00d V8tOPS tbOZWOfJ end luoh dlatpiot ah811
hve 8nd be reoognlaod to ex8rOIae auoh euthor-
Itr and powr of ooatrol 8x4 regul8tlan over
luah vatora of the Noohea Jilvor8nd ltr tribu-
tmloa es ai8f k lxorolaed br the Skto of Toxea,
lubjeot to tho provisions of tho Conrtitutlon
@Ad the’Acts 0r the LegIal8turo.”
In the light 0r tha roNgoIng oonatItutlOMl and
statutory provisions tho conclusion Is laoaoap8blo that the
Lover lecher Valley Authorlt~ Is 8n Authority oreetod dlreat-
ly by mot oi the l&glalaturo puraurnt to Artlole NL, Section
59, 0r the Conatltutlon es en lgenoy 0r the St8te 0r Toxra
vlthin the tax eraptlon granted In Art. 7150, Bubdlv. &L,
V.A.C.B., 8nd oonaoquontly OXempt fPOaI t8X8tlOn iOr 10~81
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,
transmitting, and dlatributlng lloatrlc energy or pover, the
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 lp ec ir lo 8ll~lxompt thermwf8 by the r0110ving 18ngu8ge:
“It is the 8xpreaaed legislative titont that no prysent at3811
be made In lieu of taxoa vlth reapoot to d8ma, d8m sites, re-
aonol~ areas, upd v8tor dIatrlbutIng or lrrIg8tlon l~a tema ,
belonging to 8zir auoh luthorlt~ or Dirtriot." Tour questions
one and tvo en therotore enavered In the 8rriXWttiVO.
WO8LY onclosing 8 oopy Of Opinion HO. 0-5433 vhloh
dlapoaoa of pur third question.
Veq truly yours
ATTORFIEY
OEKRRAL
OF !JEXAS
hgan Dlokaon
Aaalaknt .--,