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AN ACT

RELATING TO FLOOD CONTROL DISTRICTS; CREATING THE EASTERN

SANDOVAL COUNTY ARROYO FLOOD CONTROL AUTHORITY; PROVIDING

POWERS AND DUTIES; PROVIDING FOR A FLOOD CONTROL SYSTEM;

DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the

"Eastern Sandoval County Arroyo Flood Control Act".

Section 2. LEGISLATIVE DECLARATION.--It is declared as

a matter of legislative determination that:

A. the organization of the authority hereby

created having the purposes, powers, duties, privileges,

immunities, rights, liabilities and disabilities provided in

the Eastern Sandoval County Arroyo Flood Control Act will

serve a public use and will promote the health, safety,

prosperity, security and general welfare of the inhabitants

thereof and of the state;

B. the acquisition, improvement, maintenance and

operation of any project authorized in the Eastern Sandoval

County Arroyo Flood Control Act is in the public interest and

constitutes a part of the established and permanent policy of

the state;

C. the authority hereby organized shall be a body

corporate and politic, a quasi-municipal corporation and a

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political subdivision of the state;

D. the flood control system hereby authorized and

directed to be acquired will be of special benefit to the

property within the boundaries of the authority organized and

created in the Eastern Sandoval County Arroyo Flood Control

Act;

E. the notice provided for in the Eastern Sandoval

County Arroyo Flood Control Act for each hearing and action to

be taken is reasonably calculated to inform any person of

interest in any proceedings under that act that may directly

and adversely affect that person's legally protected

interests;

F. a general law cannot be made applicable to the

designated flood control system and the provisions

appertaining thereto in the Eastern Sandoval County Arroyo

Flood Control Act because of a number of atypical and special

conditions concerning them; and

G. for the accomplishment of these purposes, the

provisions of the Eastern Sandoval County Arroyo Flood Control

Act shall be broadly construed.

Section 3. DECISION OF BOARD OR GOVERNING BODY FINAL.--

The action and decision of the board as to all matters passed

upon by it in relation to any action, matter or thing provided

in the Eastern Sandoval County Arroyo Flood Control Act shall

be final and conclusive, if supported by substantial evidence,

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unless the action and decision are arbitrary, capricious or

fraudulent.

Section 4. DEFINITIONS.--Except where the context

otherwise requires, as used in the Eastern Sandoval County

Arroyo Flood Control Act:

A. "acquisition" or "acquire" means the opening,

laying out, establishment, purchase, construction, securing,

installation, reconstruction, lease, gift, grant from the

federal government, any public body or person, endowment,

bequest, devise, condemnation, transfer, assignment, option to

purchase, other contract or other acquirement, or any

combination thereof, of facilities, other property, any

project or an interest therein authorized by the Eastern

Sandoval County Arroyo Flood Control Act;

B. "authority" means the eastern Sandoval county

arroyo flood control authority;

C. "board" means the board of directors of the

authority;

D. "chair" means the chair of the board and

president of the authority;

E. "condemnation" or "condemn" means the

acquisition by the exercise of the power of eminent domain of

property for any facilities, other property, project or an

interest therein authorized by the Eastern Sandoval County

Arroyo Flood Control Act. The authority may exercise in the

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state the power of eminent domain, either within or without

the authority and, in the manner provided by law for the

condemnation of private property for public use, may take any

property necessary to carry out any of the objects or purposes

of the Eastern Sandoval County Arroyo Flood Control Act. In

the event the construction of any facility or project

authorized by the Eastern Sandoval County Arroyo Flood Control

Act, or any part thereof, makes necessary the removal and

relocation of any public utilities, whether on private or

public right of way, the authority shall reimburse the owner

of the public utility facility for the expense of removal and

relocation, including the cost of any necessary land or rights

in land;

F. "cost" or "cost of the project", or words of

similar import, means all, or any part designated by the

board, of the cost of any facilities, project or interest

therein being acquired and of all or any property, rights,

easements, privileges, agreements and franchises deemed by the

authority to be necessary or useful and convenient therefor or

in connection therewith, which cost, at the option of the

board, may include all or any part of the incidental costs

pertaining to the project, including without limiting the

generality of the foregoing, preliminary expenses advanced by

any municipality or other public body from funds available for

use therefor in the making of surveys, preliminary plans,

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estimates of cost, other preliminaries, the costs of

appraising, printing, employing engineers, architects, fiscal

agents, attorneys at law, clerical help, other agents or

employees, the costs of capitalizing interest or any discount

on securities, of inspection, of any administrative, operating

and other expenses of the authority prior to the levy and

collection of taxes, and of reserves for working capital,

operation, maintenance or replacement expenses or for payment

or security of principal of or interest on any securities, the

costs of making, publishing, posting, mailing and otherwise

giving any notice in connection with the project, the taking

of options, the issuance of securities, the filing or

recordation of instruments, the levy and collection of taxes

and installments thereof, the costs of reimbursements by the

authority to any public body, the federal government or any

person of any money theretofore expended for or in connection

with any facility or project and all other expenses necessary

or desirable and appertaining to any project, as estimated or

otherwise ascertained by the board;

G. "director" means a member of the board;

H. "disposal" or "dispose" means the sale,

destruction, razing, loan, lease, gift, grant, transfer,

assignment, mortgage, option to sell, other contract or other

disposition, or any combination thereof, of facilities, other

property, any project or an interest therein authorized by the

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Eastern Sandoval County Arroyo Flood Control Act;

I. "engineer" means any engineer in the permanent

employ of the authority or any independent competent engineer

or firm of such engineers employed by the authority in

connection with any facility, property, project or power

authorized by the Eastern Sandoval County Arroyo Flood Control

Act;

J. "equipment" or "equip" means the furnishing of

all necessary or desirable, related or appurtenant,

facilities, or any combination thereof, appertaining to any

facilities, property, project or interest therein authorized

by the Eastern Sandoval County Arroyo Flood Control Act;

K. "facility" means any of the water facilities,

sewer facilities or other property appertaining to the flood

control system of the authority;

L. "federal government" means the United States or

any agency, instrumentality or corporation thereof;

M. "federal securities" means the bills,

certificates of indebtedness, notes or bonds that are direct

obligations of, or the principal and interest of which

obligations are unconditionally guaranteed by, the United

States;

N. "governing body" means the city council, city

commission, board of commissioners, board of trustees, board

of directors or other legislative body of the public body

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proceeding under the Eastern Sandoval County Arroyo Flood

Control Act, in which body the legislative powers of the

public body are vested;

O. "improvement" or "improve" means the extension,

widening, lengthening, betterment, alteration, reconstruction,

repair or other improvement, or any combination thereof of

facilities, other property, project or any interest therein

authorized by the Eastern Sandoval County Arroyo Flood Control

Act;

P. "mailed notice" or notice by "mail" means the

giving by the engineer, secretary or any deputy thereof, as

determined by the board, of any designated written or printed

notice addressed to the last known owner of each tract of real

property in question or other designated person at the last

known address, by deposit, at least ten days prior to the

designated hearing or other time or event, in the United

States mail, postage prepaid, as first-class mail. In the

absence of fraud, the failure to mail any such notice shall

not invalidate any proceedings under the Eastern Sandoval

County Arroyo Flood Control Act. The names and addresses of

those property owners shall be obtained from the records of

the county assessor or from such other source as the secretary

or the engineer deems reliable. Any list of such names and

addresses may be revised from time to time, but such a list

need not be revised more frequently than at twelve-month

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intervals. Any mailing of any notice required shall be

verified by the affidavit or certificate of the engineer,

secretary, deputy or other person mailing the notice, which

verification shall be retained in the records of the authority

at least until all taxes and securities appertaining thereto

have been paid in full or any claim is barred by a statute of

limitations;

Q. "municipality" means any incorporated city,

town or village in the state, whether incorporated or governed

under a general act, special legislative act or special

charter of any type. "Municipal" pertains to municipality;

R. "person" means any human being, association,

partnership, firm or corporation, excluding a public body and

excluding the federal government;

S. "president" means the president of the

authority and the chair of the board;

T. "project" means any structure, facility,

undertaking or system that the authority is authorized to

acquire, improve, equip, maintain or operate. A project may

consist of all kinds of personal and real property. A project

shall appertain to the flood control system that the authority

is authorized and directed to provide within and without the

authority's boundaries;

U. "property" means real property and personal

property;

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V. "publication" or "publish" means publication in

at least the one newspaper designated as the authority's

official newspaper and published in the authority in the

English language at least once a week and of general

circulation in the authority. Except as otherwise

specifically provided or necessarily implied, "publication" or

"publish" also means publication for at least once a week for

three consecutive weeks by three weekly insertions, the first

publication being at least fifteen days prior to the

designated time or event, unless otherwise so stated. It is

not necessary that publication be made on the same day of the

week in each of the three calendar weeks, but not less than

fourteen days shall intervene between the first publication

and the last publication, and publication shall be complete on

the day of the last publication. Any publication required

shall be verified by the affidavit of the publisher and filed

with the secretary;

W. "public body" means the state or any agency,

instrumentality or corporation thereof or any municipality,

school district, other type of district or any other political

subdivision of the state, excluding the authority and

excluding the federal government;

X. "qualified elector" means a person qualified to

vote in general elections in the state, who is a resident of

the authority at the time of any election held under the

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provisions of the Eastern Sandoval County Arroyo Flood Control

Act or at any other time in reference to which the term

"qualified elector" is used;

Y. "real property" means:

(1) land, including land under water;

(2) buildings, structures, fixtures and

improvements on land;

(3) any property appurtenant to or used in

connection with land; and

(4) every estate, interest, privilege,

easement, franchise and right in land, legal or equitable,

including without limiting the generality of the foregoing,

rights of way, terms for years and liens, charges or

encumbrances by way of judgment, mortgage or otherwise and the

indebtedness secured by such liens;

Z. "secretary" means the secretary of the

authority;

AA. "secretary of state" means the secretary of

state of New Mexico;

BB. "securities" means any notes, warrants, bonds,

temporary bonds or interim debentures or other obligations of

the authority or any public body appertaining to any project

or interest therein authorized by the Eastern Sandoval County

Arroyo Flood Control Act;

CC. "sewer facilities" means any one or more of

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the various devices used in the collection, channeling,

impounding or disposition of storm, flood or surface drainage

waters, including all inlets, collection, drainage or disposal

lines, canals, intercepting sewers, outfall sewers, all

pumping, power and other equipment and appurtenances, all

extensions, improvements, remodeling, additions and

alterations thereof and any rights or interest in such sewer

facilities;

DD. "sewer improvement" or "improve any sewer"

means the acquisition, reacquisition, improvement,

reimprovement or repair of any storm sewer or combination

storm and sanitary sewer, including but not limited to

collecting and intercepting sewer lines or mains, submains,

trunks, laterals, outlets, ditches, ventilation stations,

pumping facilities, ejector stations and all other

appurtenances and machinery necessary, useful or convenient

for the collection, transportation and disposal of storm

water;

EE. "state" means the state of New Mexico or any

agency, instrumentality or corporation thereof;

FF. "street" means any street, avenue, boulevard,

alley, highway or other public right of way used for any

vehicular traffic;

GG. "taxes" means general (ad valorem) taxes

pertaining to any project authorized by the Eastern Sandoval

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County Arroyo Flood Control Act; and

HH. "treasurer" means the treasurer of the

authority.

Section 5. CREATION OF AUTHORITY.--There is created a

flood control authority to be known and designated as the

"eastern Sandoval county arroyo flood control authority".

Section 6. BOUNDARIES OF AUTHORITY.--The boundaries of

the authority are as follows: a portion of southern Sandoval

county bounded on the east by a line following the eastern

boundary of range 5 east of the New Mexico principal meridian,

on the south by the Pueblo of Sandia and the Cibola national

forest, on the west by the Rio Grande and on the north by a

line following the northern boundary of township 13 north of

the New Mexico principal meridian. The boundary of the

district is more particularly described as follows: beginning

at the southeast corner of projected section 1, township 12

north, range 5 east of the New Mexico principal meridian, that

point also being the southeast corner of herein described

boundary; thence proceeding in a westerly direction along a

line coincident with the northern boundary of the Cibola

national forest and of the Pueblo of Sandia to a point along

the west bank of the Rio Grande within projected section 1,

township 12 north, range 3 east of the New Mexico principal

meridian; thence in a northeasterly direction along the west

bank of the Rio Grande to a point in the northwest corner of

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section 1, township 13 north, range 4 east of the New Mexico

principal meridian; thence east along a line following the

northern boundary of township 13 north of the New Mexico

principal meridian for approximately seven miles to a point in

the northeast corner of section 1, township 13 north, range 5

east of the New Mexico principal meridian; thence in a

southerly direction approximately seven miles to the southeast

corner of projected section 1, township 12 north, range 5 east

of the New Mexico principal meridian, which point is the

southeast corner and point of beginning of the district. All

lands held in trust or ownership by the federal government or

an Indian pueblo located within the boundaries identified in

this section shall be excluded from the authority of the

authority.

Section 7. PETITION FOR EXCLUSION.--Within one hundred

eighty days from the effective date of the Eastern Sandoval

County Arroyo Flood Control Act, a written, signed and

acknowledged petition against the acquiring of the flood

control system provided for in Section 19 of that act may be

filed with the board by the owners of property of at least

thirty percent of the value of the property provided to be

taxed in that act, based upon the assessed valuation of that

property for general taxes for the year preceding the year of

making the petition. If there is real estate in the authority

that has not been separately assessed by the taxing

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authorities, the board shall value such real estate for the

purpose of such petition on the same basis of valuation as

other real estate similarly situated that has been separately

assessed. The board shall, as soon as possible, examine such

petition, if made, and canvass and pass upon and determine its

sufficiency, and its action shall be final. If the petition

is found to contain the names of the owners of property of

thirty percent of the total valuation of the property to be

taxed under the Eastern Sandoval County Arroyo Flood Control

Act and is found to be sufficient, then the flood control

system shall not be acquired; provided that no action under

the terms of that act shall be delayed during the period of

one hundred eighty days, except that no bonds shall be issued

during that time.

Section 8. BOARD OF DIRECTORS.--The governing body of

the authority is a board of directors consisting of five

qualified electors of the authority. All powers, rights,

privileges and duties vested in or imposed upon the authority

are exercised and performed by and through the board of

directors; provided that the exercise of any executive,

administrative and ministerial powers may be, by the board,

delegated and redelegated to officers and employees of the

authority or to any officer or employee contracted by

agreement to manage and administer the operations of the

authority. Except for the first directors appointed as

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provided for in Section 9 of the Eastern Sandoval County

Arroyo Flood Control Act or elected as provided in Section 10

of that act and except for any director chosen to fill an

unexpired term, the term of each director commences on the

first day of January next following a general election in the

state and runs for six years. Each director, subject to such

exceptions, shall serve a six-year term ending on the first

day of January next following a general election, and each

director shall serve until a successor has been duly chosen

and qualified.

Section 9. APPOINTMENT OF FIRST BOARD--INITIAL

MANAGEMENT.--

A. When the Eastern Sandoval County Arroyo Flood

Control Act goes into effect, the governor shall forthwith

appoint five qualified electors of the authority as the

directors comprising the first board. They shall serve until

their successors have been elected and qualified. Immediately

upon their appointment, the five directors shall meet, qualify

and choose officers, as provided for organizational meetings

in Section 13 of the Eastern Sandoval County Arroyo Flood

Control Act.

B. Immediately following the appointment of the

first board of directors, the management and administration of

the authority may be performed by the southern Sandoval county

arroyo flood control authority, for a reasonable fee, until

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the first board election for the authority is held.

Subsequent to the election of the first board of the

authority, the authority may enter into an agreement with the

southern Sandoval county arroyo flood control authority for

the continued management and administration of the authority.

Section 10. ELECTION OF OFFICERS.--At the time that a

proposal to incur debt is first submitted to the qualified

electors or at the first general election next following the

effective date of the Eastern Sandoval County Arroyo Flood

Control Act, whichever occurs first, the qualified electors of

the authority shall elect five qualified directors, two to

serve a term ending January 1, 2011, two to serve a term

ending January 1, 2013 and one to serve a term ending January

1, 2015. At the first election, the five candidates receiving

the highest number of votes shall be elected as directors.

The terms of the directors shall be determined by lot at their

organizational meeting. At each general election thereafter,

the qualified electors of the authority shall elect similarly

one or two qualified electors as directors to serve six-year

terms as directors and as successors to the directors whose

terms end on the first day of January next following each such

election. Nothing in the Eastern Sandoval County Arroyo Flood

Control Act shall be construed as preventing a qualified

elector of the authority from being elected or reelected as a

director to succeed himself. If there is only one vacancy on

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the board, the candidate receiving the highest number of votes

shall be elected as director. If there are two vacancies on

the board, the candidate receiving the highest number of votes

and the candidate receiving the next highest number of votes

shall be elected as directors.

Section 11. NOMINATION OF DIRECTORS.--Not later than

forty-five days before a proposal to incur debt is first

submitted to the qualified electors or at the first general

election next following the effective date of the Eastern

Sandoval County Arroyo Flood Control Act, whichever occurs

first, written nominations of any candidate as director may be

filed with the secretary of the board. Each nomination of any

candidate shall be signed by not less than fifty qualified

electors, regardless of whether or not nominated therein,

shall designate therein the name of the candidates thereby

nominated and shall recite that the subscribers thereto are

qualified electors and that the candidate or candidates

designated therein are qualified electors of the authority.

No written nomination may designate more qualified electors as

candidates than there are vacancies. No qualified elector may

nominate more than one candidate for any vacancy. If a

candidate does not withdraw the candidate's name before the

first publication of the notice of election, the candidate's

name shall be placed on the ballot. For any election held

after November 2008, nominations shall be made by qualified

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electors in accordance with the procedures and limitations of

this section, except that such nominations shall be filed with

the secretary of the board not later than the fourth Tuesday

in June preceding the general election.

Section 12. FILLING VACANCIES ON THE BOARD.--Upon a

vacancy occurring in the board by reason of death, change of

residence, resignation or for any other reason, the governor

shall appoint a qualified elector of the authority as

successor to serve the unexpired term.

Section 13. ORGANIZATIONAL MEETINGS.--Except for the

first board, each board shall meet on the first business day

next following the first day of January in each odd-numbered

year, at the office of the board within the authority. Each

member of the board, before entering upon the member's

official duties, shall take and subscribe on oath that the

member will support the constitution of the United States and

the constitution and laws of New Mexico and that the member

will faithfully and impartially discharge the duties of the

office to the best of the member's ability, which oath shall

be filed in the office of the secretary of state. Each

director shall, before entering upon the director's official

duties, give a bond to the authority in the sum of ten

thousand dollars ($10,000) with good and sufficient surety,

conditioned for the faithful performance of all of the duties

of the director's office, without fraud, deceit or oppression,

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and the accounting for all money and property coming into the

director's hands and the prompt and faithful payment of all

money and the delivering of all property coming into the

director's custody or control belonging to the authority to

the director's successors in office. Premiums on all bonds

provided for in this section shall be paid by the authority

and all such bonds shall be kept on file in the office of the

secretary of state.

Section 14. BOARD'S ADMINISTRATIVE POWERS.--The board

may exercise the following powers:

A. fix the time and place at which its regular

meetings will be held within the authority and provide for the

calling and holding of special meetings;

B. adopt and amend or otherwise modify bylaws and

rules for procedure;

C. select one director as chair of the board and

president of the authority, and another director as chair pro

tem of the board and president pro tem of the authority, and

choose a secretary and a treasurer of the board and authority,

each of which two positions may be filled by a person who is,

or is not, a director, and both of which positions may, or may

not, be filled by one person;

D. prescribe by resolution a system of business

administration and create all necessary offices and establish

and re-establish the powers, duties and compensation of all

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officers and employees;

E. require and fix the amount of all official

bonds necessary or desirable and convenient in the opinion of

the board for the protection of the funds and property of the

authority, subject to the provisions of Section 13 of the

Eastern Sandoval County Arroyo Flood Control Act;

F. prescribe a method of auditing and allowing or

rejecting claims and demands;

G. provide a method for the letting of contracts

on a fair and competitive basis for the construction of works,

any facility or any project or any interest therein or the

performance or furnishing of labor, materials or supplies as

required in the Eastern Sandoval County Arroyo Flood Control

Act;

H. designate an official newspaper published in

the authority in the English language and direct additional

publication in any newspaper where it deems that the public

necessity may so require; and

I. make and pass resolutions and orders on behalf

of the authority not repugnant to the provisions of the

Eastern Sandoval County Arroyo Flood Control Act, necessary or

proper for the government and management of the affairs of the

authority, for the execution of the powers vested in the

authority and for carrying into effect the provisions of that

act.

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Section 15. RECORDS OF BOARD.--On all resolutions and

orders, the roll shall be called, and the ayes and nays shall

be recorded. All resolutions and orders, as soon as may be

after their passage, shall be recorded in a book kept for that

purpose and be authenticated by the signature of the presiding

officer of the board and the secretary. Every legislative act

of the board of a general or permanent nature shall be by

resolution. The book of resolutions and orders is a public

record. A record shall also be made of all other proceedings

of the board, minutes of all meetings, certificates,

contracts, bonds given by officers, employees and any other

agents of the authority, and all corporate acts, which record

is also a public record. The treasurer shall keep strict and

accurate accounts of all money received by and disbursed for

and on behalf of the authority in a permanent record, which is

also a public record. Any permanent record of the authority

shall be open for inspection by any qualified elector thereof,

by any other interested person or by any representative of the

federal government or any public body. All records are

subject to audit as provided by law for political

subdivisions.

Section 16. MEETINGS OF THE BOARD.--All meetings of the

board shall be held within the authority and shall be open to

the public. No business of the board shall be transacted

except at a regular or special meeting at which a quorum

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consisting of at least three-fifths of the total membership of

the board is present. Any action of the board requires the

affirmative vote of a majority of the directors present and

voting. A smaller number of directors than a quorum may

adjourn from time to time and may compel the attendance of

absent members in the manner and under such penalties as the

board may provide.

Section 17. COMPENSATION OF DIRECTORS.--Directors shall

receive no compensation for their services as a director,

officer, engineer, attorney, employee or other agent of the

authority. Directors may be reimbursed for expenses incurred

by them on authority business with approval of the board.

Section 18. INTEREST IN CONTRACTS AND PROPERTY

DISQUALIFICATIONS.--No director or officer, employee or agent

of the authority may be interested in any contract or

transaction with the authority except in the director's or

officer's official representative capacity or as provided,

except for any contract of employment with the authority.

Neither the holding of any office nor employment in the

government of any public body or the federal government nor

the owning of any property within the state, within or without

the authority, may be deemed a disqualification for membership

on the board or employment by the authority, or a

disqualification for compensation for services as an officer,

employee or agent of the authority, except as provided in

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Section 17 of the Eastern Sandoval County Arroyo Flood Control

Act.

Section 19. FLOOD CONTROL SYSTEM--HEARINGS.--The

authority is authorized, empowered and directed, subject to

the provisions of Section 7 of the Eastern Sandoval County

Arroyo Flood Control Act, to acquire, equip, maintain and

operate a flood control system for the benefit of the

authority and the inhabitants thereof, after the board has

made such preliminary studies and otherwise taken such action

as it determines to be necessary or desirable as

preliminaries. The flood control system consists of such

facilities as the board may determine. When a comprehensive

program for the acquisition of the flood control system

satisfactory to the board is available, it shall be

tentatively adopted. The program need only describe the

proposed flood control system in general terms and not in

detail. A public hearing on the proposed program shall be

scheduled, and notice of the hearing shall be given by

publication. After the hearing and any adjournments of that

hearing that may be ordered, the board may either require

changes to be made in the program as the board may consider

desirable or the board may approve the program as prepared. If

any substantial changes to the program are ordered at any

time, a further hearing shall be held pursuant to notice that

shall be given by publication.

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Section 20. IMPLEMENTING POWERS.--The board may:

A. acquire, improve, equip, maintain and operate

any project or facility for the control of flood and storm

waters of the authority and the flood and storm waters of

streams that have their sources outside of the authority but

which streams and the flood waters thereof flow into the

authority;

B. protect from such floods or storm waters the

water courses, watersheds, public highways, life and property

in the authority; and

C. exercise the right of eminent domain, either

within or without the authority, in the manner provided by law

for the condemnation of private property for public use.

Section 21. PROTECTION OF PROPERTY RIGHTS.--It is

declared that the use of the property, lands, rights of way,

easements or materials that may be condemned, taken or

appropriated under the provisions of the Eastern Sandoval

County Arroyo Flood Control Act is a public use subject to the

regulation and control of the state in the manner prescribed

by law; but nothing in that act shall be deemed to authorize

the authority or public body or person to divert the waters of

any river, creek, stream, arroyo, irrigation system, canal or

ditch from its channel to the detriment of any person, any

public body or the federal government having any interest in

such river, creek, stream, arroyo, irrigation system, canal or

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ditch, or the waters thereof or therein, unless compensation

is ascertained and paid therefor under the laws authorizing

the taking of private property for public use.

Section 22. ADDITIONAL POWERS OF THE AUTHORITY.--The

authority may exercise the following duties, privileges,

immunities, rights, liabilities and disabilities appertaining

to a public body politic and corporate and constituting a

quasi-municipal corporation and political subdivision of the

state established as an instrumentality exercising public and

essential governmental and proprietary functions to provide

for the public health, safety and general welfare:

A. perpetual existence and succession;

B. adopt, have and use a corporate seal and alter

the same at pleasure;

C. sue and be sued and be a party to suits,

actions and proceedings;

D. commence, maintain, intervene in, defend,

compromise, terminate by settlement or otherwise and otherwise

participate in and assume the cost and expense of any and all

actions and proceedings now or hereafter begun and

appertaining to the authority, its board, its officers, agents

or employees, or any of the authority's duties, privileges,

immunities, rights, liabilities and disabilities, or the

authority's flood control system, other property of the

authority or any project;

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E. enter into contracts and agreements, including

but not limited to contracts with the federal government, the

state and any other public body;

F. borrow money and issue securities evidencing

any loan to or amount due by the authority, provide for and

secure the payment of any securities and the rights of the

holders of those securities and purchase, hold and dispose of

securities as provided in the Eastern Sandoval County Arroyo

Flood Control Act;

G. refund any loan or obligation of the authority

and issue refunding securities to evidence such loan or

obligation without any election;

H. purchase, trade, exchange, encumber and

otherwise acquire, maintain and dispose of property and

interests in that property;

I. levy and cause to be collected general ad

valorem taxes on all property subject to property taxation

within the authority; provided that the total tax levy,

excluding any levy for the payment of any debt of the

authority authorized pursuant to the Eastern Sandoval County

Arroyo Flood Control Act, for any fiscal year shall not exceed

an aggregate total of two dollars ($2.00), or any lower amount

required by operation of the rate limitation provisions of

Section 7-37-7.1 NMSA 1978 upon this tax levy, for each one

thousand dollars ($1,000) of net taxable value, as that term

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is defined in the Property Tax Code, by certifying, on or

before the fifteenth day of July in each year in which the

board determines to levy a tax, to the board of county

commissioners of Sandoval county, or by such other date as the

laws of the state may prescribe to such other body having

authority to levy taxes within each county wherein the

authority has any territory, the rate so fixed, with

directions that, at the time and in the manner required by law

for levying taxes for other purposes, such body having

authority to levy taxes shall levy the tax upon the net

taxable value of all property subject to property taxation

within the authority, in addition to such other taxes as may

be levied by such body, as provided in Sections 23 through 27

of the Eastern Sandoval County Arroyo Flood Control Act. No

taxes may be levied and collected for any purpose, or any

contract made, until a bond issue has been submitted to and

approved by the qualified electors as provided in the Eastern

Sandoval County Arroyo Flood Control Act;

J. hire and retain officers, agents, employees,

engineers, attorneys and any other persons, permanent or

temporary, necessary or desirable to effect the purposes of

the Eastern Sandoval County Arroyo Flood Control Act, defray

any expenses incurred thereby in connection with the authority

and acquire office space, equipment, services, supplies, fire

and extended coverage insurance, use and occupancy insurance,

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workers' compensation insurance, property damage insurance,

public liability insurance for the authority and its officers,

agents and employees and other types of insurance, as the

board may determine; provided, however, that no provision in

that act authorizing the acquisition of insurance shall be

construed as waiving any immunity of the authority or any

director, officer or agent thereof and otherwise existing

under the laws of the state;

K. condemn property for public use;

L. acquire, improve, equip, hold, operate,

maintain and dispose of a flood control system, storm sewer

facilities, project and appurtenant works, or any interest

therein, wholly within the authority, or partially within and

partially without the authority, and wholly within, wholly

without or partially within and partially without any public

body all or any part of the area of which is situated within

the authority;

M. pay or otherwise defray the cost of any

project;

N. pay or otherwise defray and contract so to pay

or defray, for any term not exceeding fifty years, without an

election, except as otherwise provided in the Eastern Sandoval

County Arroyo Flood Control Act, the principal of, any

interest on and any other charges appertaining to, any

securities or other obligations of the federal government, any

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public body or person incurred in connection with any such

property so acquired by the authority;

O. establish and maintain facilities within or

without the authority, across or along any public street,

highway, bridge, viaduct or other public right of way or in,

upon, under or over any vacant public lands, which public

lands are now or may become the property of the state, or

across any stream of water or water course, without first

obtaining a franchise from the municipality, county or other

public body having jurisdiction over the same; provided that

the authority shall cooperate with any public body having such

jurisdiction, shall promptly restore any such street, highway,

bridge, viaduct or other public right of way to its former

state of usefulness as nearly as may be and shall not use the

same in such manner as to impair completely or unnecessarily

the usefulness thereof;

P. deposit any money of the authority, subject to

the limitations in Article 8, Section 4 of the constitution of

New Mexico, in any banking institution within or without the

state and secured in such manner and subject to such terms and

conditions as the board may determine, with or without the

payment of any interest on any such deposit;

Q. invest any surplus money in the authority

treasury, including such money in any sinking or reserve fund

established for the purpose of retiring any securities of the

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authority, not required for the immediate necessities of the

authority, in its own securities or in federal securities, by

direct purchase of any issue of such securities, or part

thereof, at the original sale of the same, or by the

subsequent purchase of such securities;

R. sell any such securities thus purchased and

held, from time to time;

S. reinvest the proceeds of any such sale in other

securities of the authority or in federal securities, as

provided in Subsection Q of this section;

T. sell in season from time to time such

securities thus purchased and held, so that the proceeds may

be applied to the purposes for which the money with which such

securities were originally purchased was placed in the

treasury of the authority;

U. accept contributions or loans from the federal

government for the purpose of financing the planning,

acquisition, improvement, equipment, maintenance and operation

of any enterprise in which the authority is authorized to

engage and enter into contracts and cooperate with and accept

cooperation and participation from the federal government for

these purposes;

V. enter, without any election, into joint

operating or service contracts and agreements, acquisition,

improvement, equipment or disposal contracts or other

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arrangements, for any term not exceeding fifty years, with the

federal government, any public body or any person concerning

storm sewer facilities, or any project, whether acquired by

the authority or by the federal government, any public body or

any person, and accept grants and contributions from the

federal government, any public body or any person in

connection therewith;

W. enter into and perform, without any election,

when determined by the board to be in the public interest and

necessary for the protection of the public health, contracts

and agreements, for any term not exceeding fifty years, with

the federal government, any public body or any person for the

provision and operation by the authority of storm sewer

facilities;

X. enter into and perform, without any election,

contracts and agreements with the federal government, any

public body or any person for or concerning the planning,

construction, lease or other acquisition, improvement,

equipment, operation, maintenance, disposal, and the financing

of any project, including but not necessarily limited to any

contract or agreement for any term not exceeding fifty years;

Y. enter upon any land, make surveys, borings,

soundings and examinations for the purposes of the authority,

locate the necessary works of any project and roadways and

other rights of way appertaining to any project authorized in

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the Eastern Sandoval County Arroyo Flood Control Act; and

acquire all property necessary or convenient for the

acquisition, improvement or equipment of such works;

Z. cooperate with and act in conjunction with the

state, or any of its engineers, officers, boards, commissions

or departments, or with the federal government or any of its

engineers, officers, boards, commissions or departments, or

with any other public body or any person in the acquisition,

improvement or equipment of any project for the controlling of

flood or storm waters of the authority, or for the protection

of life or property therein, or for any other works, acts or

purposes provided for in the Eastern Sandoval County Arroyo

Flood Control Act, and adopt and carry out any definite plan

or system of work for any such purpose;

AA. cooperate with the federal government or any

public body by an agreement therewith by which the authority

may:

(1) acquire and provide, without cost to the

cooperating entity, the land, easements and rights of way

necessary for the acquisition, improvement or equipment of the

flood control system or any project;

(2) hold and save harmless the cooperating

entity free from any claim for damages arising from the

acquisition, improvement, equipment, maintenance and operation

of the flood control system or any project;

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(3) maintain and operate any project in

accordance with regulations prescribed by the cooperating

entity; and

(4) establish and enforce flood channel

limits and regulations, if any, satisfactory to the

cooperating entity;

BB. carry on technical and other investigations of

all kinds, make measurements, collect data and make analyses,

studies and inspections pertaining to control of floods, sewer

facilities, and any project, both within and without the

authority, and for this purpose the authority has the right of

access through its authorized representative to all lands and

premises within the state;

CC. have the right to provide from revenues or

other available funds an adequate fund for the improvement and

equipment of the authority's flood control system or of any

parts of the works and properties of the authority;

DD. prescribe and enforce reasonable rules and

regulations for the prevention of further encroachment upon

existing defined waterways, by their enlargement or other

modification, for additional waterway facilities to prevent

flooding;

EE. require any person desiring to make a

connection to any storm water drain or flood control facility

of the authority or to cause storm waters to be emptied into

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any ditch, drain, canal, floodway or other appurtenant

structure of the authority firstly to make application to the

board to make the connection and to require the connection to

be made in such manner as the board may direct;

FF. refuse, if reasonably justified by the

circumstances, permission to make any connection designated in

Subsection DD or EE of this section;

GG. make and keep records in connection with any

project or otherwise concerning the authority;

HH. arbitrate any differences arising in

connection with any project or otherwise concerning the

authority;

II. have the management, control and supervision

of all the business and affairs appertaining to any project

herein authorized, or otherwise concerning the authority, and

of the acquisition, improvement, equipment, operation and

maintenance of any such project;

JJ. prescribe the duties of officers, agents,

employees and other persons and fix their compensation;

provided that the compensation of employees and officers shall

be established at prevailing rates of pay for equivalent work;

KK. enter into contracts of indemnity and

guaranty, in such form as may be approved by the board,

relating to or connected with the performance of any contract

or agreement that the authority is empowered to enter into

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under the provisions of the Eastern Sandoval County Arroyo

Flood Control Act or of any other law of the state;

LL. provide, by any contract for any term not

exceeding fifty years, or otherwise, without an election:

(1) for the joint use of personnel,

equipment and facilities of the authority and any public body,

including without limitation public buildings constructed by

or under the supervision of the board of the authority or the

governing body of the public body concerned, upon such terms

and agreements and within such areas within the authority as

may be determined, for the promotion and protection of health,

comfort, safety, life, welfare and property of the inhabitants

of the authority and any such public body; and

(2) for the joint employment of clerks,

stenographers and other employees appertaining to any project,

now existing or hereafter established in the authority, upon

such terms and conditions as may be determined for the

equitable apportionment of the expenses therefrom resulting;

MM. obtain financial statements, appraisals,

economic feasibility reports and valuations of any type

appertaining to any project or any property pertaining

thereto;

NN. adopt any resolution authorizing a project or

the issuance of securities, or both, or otherwise appertaining

thereto, or otherwise concerning the authority;

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OO. make and execute a mortgage, deed of trust,

indenture or other trust instrument appertaining to a project

or to any securities authorized in the Eastern Sandoval County

Arroyo Flood Control Act, or to both, except as provided in

Subsection PP of this section and in Section 54 of that act;

PP. make all contracts, execute all instruments

and do all things necessary or convenient in the exercise of

the powers granted in the Eastern Sandoval County Arroyo Flood

Control Act, or in the performance of the authority's

covenants or duties, or in order to secure the payment of its

securities; provided, no encumbrance, mortgage or other pledge

of property, excluding any money, of the authority is created

thereby and provided no property, excluding money, of the

authority is liable to be forfeited or taken in payment of

such securities;

QQ. have and exercise all rights and powers

necessary or incidental to or implied from the specific powers

granted in the Eastern Sandoval County Arroyo Flood Control

Act, which specific powers shall not be considered as a

limitation upon any power necessary or appropriate to carry

out the purposes and intent of that act; and

RR. exercise all or any part or combination of

the powers granted in the Eastern Sandoval County Arroyo Flood

Control Act.

Section 23. LEVY AND COLLECTION OF TAXES.--To levy and

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collect taxes, the board shall determine in each year the

amount of money necessary to be raised by taxation, taking

into consideration other sources of revenue of the authority,

and shall fix a rate of levy, without limitation as to rate or

amount, except for the limitation in Subsection I of Section

22 of the Eastern Sandoval County Arroyo Flood Control Act and

for any constitutional limitation, that, when levied upon the

net taxable value, as that term is defined in the Property Tax

Code, of all property subject to property taxation within the

authority, and together with other revenues, will raise the

amount required by the authority annually to supply funds for

paying expenses of organization and the costs of acquiring,

improving, equipping, operating and maintaining any project or

facility of the authority, and promptly to pay in full, when

due, all interest on and principal of bonds and other

securities of the authority, and in the event of accruing

defaults or deficiencies, an additional levy may be made as

provided in Section 24 of the Eastern Sandoval County Arroyo

Flood Control Act.

Section 24. LEVIES TO COVER DEFICIENCIES.--The board,

in certifying annual levies, shall take into account the

maturing indebtedness for the ensuing year as provided in its

contracts, maturing securities and interest on securities, and

deficiencies and defaults of prior years and shall make ample

provision for the payment thereof. In case the money produced

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from such levies, together with other revenues of the

authority, is not sufficient punctually to pay the annual

installments of its contracts or securities, and interest

thereon, and to pay defaults and deficiencies, the board shall

make such additional levies of taxes as may be necessary for

such purposes, and notwithstanding any limitations, except the

limitation in Subsection I of Section 22 of the Eastern

Sandoval County Arroyo Flood Control Act, and any

constitutional limitation, such taxes shall be made and

continue to be levied until the indebtedness of the authority

is fully paid.

Section 25. SINKING FUND.--Whenever any indebtedness

has been incurred by the authority, it is lawful for the board

to levy taxes and to collect revenue for the purpose of

creating a reserve fund in such amount as the board may

determine, which may be used to meet the obligations of the

authority, for maintenance and operating charges and

depreciation, and to provide improvements for the authority.

Section 26. MANNER OF LEVYING AND COLLECTING TAXES.--It

is the duty of the body having authority to levy taxes within

each county to levy the taxes provided in Subsection I of

Section 22 of the Eastern Sandoval County Arroyo Flood Control

Act, and elsewhere in that act. It is the duty of all

officials charged with collecting taxes to collect such taxes

at the time and in the form and manner and with like interest

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and penalties as other general (ad valorem) taxes are

collected, and when collected, to pay the same to the

authority. The payment of such collection shall be made

monthly to the treasurer of the authority and paid into the

depository thereof to the credit of the authority. All

general (ad valorem) taxes levied under the Eastern Sandoval

County Arroyo Flood Control Act, together with interest

thereon and penalties for default in payment thereof, and all

costs of collecting the same constitute until paid a perpetual

lien on and against the property taxed, and such lien is on a

parity with the tax lien of other general (ad valorem) taxes.

Section 27. DELINQUENT TAXES.--If the general (ad

valorem) taxes levied are not paid, then delinquent real

property shall be sold at the regular tax sale for the payment

of such taxes, interest and penalties, in the manner provided

by the statutes of the state for selling real property for the

nonpayment of general taxes. If there are no bids at the tax

sale for the property so offered, the property shall be struck

off to the county, and the county shall account to the

authority in the same manner as provided by law for accounting

for school, town and city taxes. Delinquent personal property

shall be distrained and sold as provided by law.

Section 28. ELECTIONS.--Each biennial election of

directors shall be conducted at the time of the general

election under the direction of the Sandoval county clerk and

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in accordance with the election laws of New Mexico. Any other

election of the authority, including an election to seek

approval for the issuance of bonds, shall be conducted at any

time approved by the board in accordance with the election

laws of New Mexico. Elections for the issuance of bonds may

be by mail-in ballot pursuant to the procedures set forth in

the Mail Ballot Election Act.

Section 29. ELECTION RESOLUTION.--The board shall call

any election by resolution adopted at least fifty days prior

to the election. The resolution shall recite the objects and

purposes of the election and the date upon which the election

shall be held.

Section 30. CONDUCT OF ELECTION.--An election held

pursuant to the Eastern Sandoval County Arroyo Flood Control

Act shall be conducted in the manner provided by the laws of

the state for the conduct of general elections.

Section 31. NOTICE OF ELECTION.--Notice of an election

pursuant to Section 30 of the Eastern Sandoval County Arroyo

Flood Control Act shall be given by publication. No other

notice of an election held under the Eastern Sandoval County

Arroyo Flood Control Act need be given unless otherwise

provided by the board.

Section 32. POLLING PLACES.--All polling places shall

be within the area included within the authority. The

authority may consolidate the precincts for any election of

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the authority not conducted at the time of the general

election. If precincts are consolidated, the notice of the

election shall state which precincts have been consolidated

and the designation of the polling place.

Section 33. ELECTION SUPPLIES.--The secretary shall

provide to the Sandoval county clerk such supplies and

assistance as necessary to conduct elections authorized by the

Eastern Sandoval County Arroyo Flood Control Act.

Section 34. ELECTION RETURNS.--For authority elections

held at the time of the general election, the regular general

election precinct board shall certify the results of the

authority election to the county canvassing board. The county

canvassing board shall certify directly to the secretary that

portion of the returns pertaining to the authority election.

For authority elections held at a different time than the

general election, the authority shall appoint an authority

precinct board at the authority's expense for each polling

place. The authority precinct board shall conduct the

election as provided in the Election Code. The separate

authority precinct board shall certify the results of the

election in that precinct to the secretary within twelve hours

after the close of the polls. The secretary shall canvass the

results of the authority election as certified by each of the

separate authority precinct boards and shall declare the

results of the election at any regular or special meeting held

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not less than five days following the date of the election.

Except as otherwise provided, any proposal submitted at any

election held pursuant to the Eastern Sandoval County Arroyo

Flood Control Act shall not carry unless the proposal has been

approved by a majority of the qualified electors of the

district voting on the proposal.

Section 35. DISSOLUTION OF AUTHORITY.--If a petition is

received pursuant to Section 7 of the Eastern Sandoval County

Arroyo Flood Control Act denying the board the power to

acquire a flood control system or if the first proposal for

the issuance of bonds fails to receive a favorable vote by a

majority of the qualified electors voting on the proposal, the

board shall proceed to dissolve the authority.

Section 36. FILING OF DISSOLUTION RESOLUTION.--Within

thirty days after the effective date of any resolution

dissolving the authority, the secretary shall file a copy of

the resolution in the office of the county clerk and shall

file an additional copy of the resolution in the office of the

secretary of state, which filings shall be without fee and be

otherwise in the same manner as articles of incorporation are

required to be filed under the laws of the state.

Section 37. DISPOSITION OF PROPERTY, FUNDS AND TAXES OF

AUTHORITY.--All property and all funds remaining in the

treasury of the authority so dissolved shall be surrendered

and transferred to the county in which the authority is

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located and shall become a part of the general fund of the

county.

Section 38. POWERS OF PUBLIC BODIES.--The governing

body of any municipality, federally authorized Indian nation,

pueblo or tribe or other public body, upon its behalf and in

its name, for the purpose of aiding and cooperating in the

determination of any authority boundary or any project

authorized in the Eastern Sandoval County Arroyo Flood Control

Act, upon the terms and with or without consideration and with

or without an election, as the governing body determines, may

exercise the following powers:

A. sell, lease, loan, donate, grant, convey,

assign, transfer and otherwise dispose to the authority, sewer

facilities or any other property, or any interest therein,

appertaining to a flood control system;

B. make available for temporary use or otherwise

dispose to the authority of any machinery, equipment,

facilities and other property, and any agents, employees,

persons with professional training, and any other persons, to

effect the purposes of the Eastern Sandoval County Arroyo

Flood Control Act. Any such property and persons owned or in

the employ of any public body while engaged in performing for

the authority any service, activity or undertaking authorized

in the Eastern Sandoval County Arroyo Flood Control Act,

pursuant to contract or otherwise, shall have and retain all

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of the powers, privileges, immunities, rights and duties of

and shall be deemed to be engaged in the service and

employment of such public body, notwithstanding such service,

activity or undertaking is being performed in or for the

authority;

C. enter into any agreement or joint agreement

between or among the federal government, the authority and any

other public body, or any combination thereof, extending over

any period not exceeding fifty years, which is mutually agreed

thereby, notwithstanding any law to the contrary, respecting

action or proceedings appertaining to any power granted in the

Eastern Sandoval County Arroyo Flood Control Act, and the use

or joint use of any facilities, project or other property

authorized in that act;

D. sell, lease, loan, donate, grant, convey,

assign, transfer or pay over to the authority any facilities

or any project authorized in the Eastern Sandoval County

Arroyo Flood Control Act, or any part thereof, or any interest

in real or personal property, or any funds available for

acquisition, improvement or equipment purposes, including the

proceeds of any securities previously or hereafter issued for

acquisition, improvement or equipment purposes that may be

used by the authority in the acquisition, improvement,

equipment, maintenance or operation of any facilities or

project authorized in that act;

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E. transfer, grant, convey or assign and set over

to the authority any contracts that may have been awarded by

the public body for the acquisition, improvement or equipment

of any project not begun or if begun, not completed;

F. budget and appropriate, and each municipality

or other public body is hereby required and directed to budget

and appropriate, from time to time, general (ad valorem) tax

proceeds, and other revenues legally available therefor to pay

all obligations arising from the exercise of any powers

granted in the Eastern Sandoval County Arroyo Flood Control

Act as such obligations shall accrue and become due;

G. provide for an agency, by any agreement

authorized in the Eastern Sandoval County Arroyo Flood Control

Act, to administer or execute that or any collateral

agreement, which agency may be one of the parties to the

agreement, or a commission or board constituted pursuant to

the agreement;

H. provide that any such agency shall possess the

common power specified in the agreement, and may exercise it

in the manner or according to the method provided in the

agreement. Such power is subject to the restrictions upon the

manner of exercising the power of any one of the contracting

parties, which party shall be designated by the agreement; and

I. continue any agreement authorized in the

Eastern Sandoval County Arroyo Flood Control Act for a

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definite term not exceeding fifty years, or until rescinded or

terminated, which agreement may provide for the method by

which it may be rescinded or terminated by any party.

Section 39. EFFECTS OF EXTRATERRITORIAL FUNCTIONS.--All

of the powers, privileges, immunities and rights, exemptions

from laws, ordinances and rules, all pension, relief,

disability, workers' compensation and other benefits that

apply to the activity of officers, agents or employees of the

authority or any such public body when performing their

respective functions within the territorial limits of the

respective public agencies apply to them to the same degree

and extent while engaged in the performance of any of their

functions and duties extraterritorially under the Eastern

Sandoval County Arroyo Flood Control Act.

Section 40. FORMS OF BORROWING.--Upon the conditions

and under the circumstances set forth in the Eastern Sandoval

County Arroyo Flood Control Act, the authority, to carry out

the purposes of that act, from time to time may borrow money

to defray the cost of any project, or any part thereof, as the

board may determine and issue the following securities to

evidence such borrowing:

A. notes;

B. warrants;

C. bonds;

D. temporary bonds; and

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E. interim debentures.

Section 41. ISSUANCE OF NOTES.--The authority is

authorized to borrow money without an election in anticipation

of taxes or other revenues, or both, and to issue notes to

evidence the amount so borrowed.

Section 42. ISSUANCE OF WARRANTS.--The authority is

authorized to defray the cost of any services, supplies,

equipment or other materials furnished to or for the benefit

of the authority by the issuance of warrants to evidence the

amount due therefor, without an election, in anticipation of

taxes or other revenues, or both.

Section 43. MATURITIES OF NOTES AND WARRANTS.--Notes

and warrants may mature at such time not exceeding one year

from the respective dates of their issuance as the board may

determine. They shall not be extended or funded except by the

issuance of bonds or interim debentures in compliance with

Section 44 or 46 of the Eastern Sandoval County Arroyo Flood

Control Act.

Section 44. ISSUANCE OF BONDS AND INCURRENCE OF DEBT.--

The authority is authorized to borrow money in anticipation of

taxes or other revenues, or both, and to issue bonds to

evidence the amount so borrowed. No bonded indebtedness or

any other indebtedness not payable in full within one year,

except for interim debentures as provided in Sections 46 and

89 through 91 of the Eastern Sandoval County Arroyo Flood

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Control Act, shall be created by the authority without first

submitting a proposition of issuing such bonds to the

qualified electors of the authority and being approved by a

majority of such electors voting thereon at an election held

for that purpose in accordance with Sections 28 through 34 of

that act and all laws amendatory thereof and supplemental

thereto. Bonds so authorized may be issued in one series or

more and may mature at such time or times not exceeding forty

years from their issuance as the board may determine. The

total of all outstanding indebtedness at any one time shall

not exceed fifty million dollars ($50,000,000) without prior

approval of the state legislature.

Section 45. ISSUANCE OF TEMPORARY BONDS.--The authority

is authorized to issue temporary bonds, pending preparation of

definitive bond or bonds and exchangeable for the definitive

bond or bonds when prepared, as the board may determine. Each

temporary bond shall set forth substantially the same

conditions, terms and provisions as the definitive bond for

which it is exchanged. Each holder of any such temporary

security shall have all the rights and remedies that the

holder would have as a holder of the definitive bond or bonds.

Section 46. ISSUANCE OF INTERIM DEBENTURES.--The

authority is authorized to borrow money and to issue interim

debentures evidencing "construction" or short-term loans for

the acquisition or improvement and equipment of the flood

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control system or any project in supplementation of long-term

financing and the issuance of bonds as provided in Sections 89

through 91 of the Eastern Sandoval County Arroyo Flood Control

Act.

Section 47. PAYMENT OF SECURITIES.--All securities

issued by the authority shall be authorized by resolution.

The authority may pledge its full faith and credit for the

payment of any securities authorized in the Eastern Sandoval

County Arroyo Flood Control Act, the interest thereon, any

prior redemption premium or premiums and any charges

appertaining thereto. Securities may constitute the direct

and general obligations of the authority. Their payment may

be secured by a specific pledge of tax proceeds and other

revenues of the authority as the board may determine.

Section 48. ADDITIONALLY SECURED SECURITIES.--The

board, in connection with such additionally secured

securities, in the resolution authorizing their issuance or

other instrument appertaining thereto, may pledge all or a

portion of such revenues, subject to any prior pledges, as

additional security for such payment of such securities, and

at its option may deposit such revenues in a fund created to

pay the securities or created to secure additionally their

payment.

Section 49. PLEDGE OF REVENUES.--Any such revenues

pledged directly or as additional security for the payment of

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securities of any one issue or series, which revenues are not

exclusively pledged therefor, may subsequently be pledged

directly or as additional security for the payment of the

securities of one or more issue or series subsequently

authorized.

Section 50. RANKING AMONG DIFFERENT ISSUES.--All

securities of the same issue or series shall, subject to the

prior and superior rights of outstanding securities, claims

and other obligations, have a prior, paramount and superior

lien on the revenues pledged for the payment of the securities

over and ahead of any lien thereagainst subsequently incurred

of any other securities; provided, however, the resolution

authorizing, or other instrument appertaining to, the issuance

of any securities may provide for the subsequent authorization

of bonds or other securities the lien for the payment of which

on such revenues is on a parity with the lien thereon of the

subject securities upon such conditions and subject to such

limitations as the resolution or other instrument may provide.

Section 51. RANKING AMONG SECURITIES OF SAME ISSUE.--

All securities of the same issue or series shall be equally

and ratably secured without priority by reason of number, date

of maturity, date of securities, of sale, of execution or of

delivery, by a lien on such revenues in accordance with the

provisions of the Eastern Sandoval County Arroyo Flood Control

Act and the resolution authorizing, or other instrument

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appertaining to, such securities, except to the extent such

resolution or other instrument otherwise expressly provides.

Section 52. PAYMENT RECITAL IN SECURITIES.--Each

security issued under the Eastern Sandoval County Arroyo Flood

Control Act shall recite in substance that the security and

the interest on that security are payable solely from the

revenues or other money pledged to the payment of those

revenues. Securities specifically pledging the full faith and

credit of the authority for their payment shall so state.

Section 53. INCONTESTABLE RECITAL IN SECURITIES.--Any

resolution authorizing, or other instrument appertaining to,

any securities under the Eastern Sandoval County Arroyo Flood

Control Act may provide that each security authorized by such

a resolution shall recite that it is issued under authority of

that act. Such recital shall conclusively impart full

compliance with all of the provisions of the Eastern Sandoval

County Arroyo Flood Control Act, and all securities issued

containing such recital shall be incontestable for any cause

whatsoever after their delivery for value.

Section 54. LIMITATIONS UPON PAYMENT OF SECURITIES.--

The payment of securities shall not be secured by an

encumbrance, mortgage or other pledge of property of the

authority, except for revenues, income, tax proceeds and other

money pledged for the payment of securities. No property of

the authority, subject to such exception, shall be liable to

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be forfeited or taken in payment of the securities.

Section 55. LIMITATIONS UPON INCURRING ANY DEBT.--

Nothing in the Eastern Sandoval County Arroyo Flood Control

Act shall be construed as creating or authorizing the creation

of an indebtedness on the part of any municipality or other

public body included in the authority or elsewhere located.

Section 56. SECURITY DETAILS.--Any securities

authorized to be issued in the Eastern Sandoval County Arroyo

Flood Control Act shall bear the date or dates, shall be in

the denomination or denominations, shall mature at the time or

times but in no event exceeding forty years from their date or

any shorter limitation provided in that act, shall bear

interest that may be evidenced by one or two sets of coupons,

payable annually or semiannually, except that the first coupon

or coupons, if any, appertaining to any security may represent

interest for any period not in excess of one year, as may be

prescribed by resolution or other instrument; and the

securities and any coupons shall be payable in the medium of

payment at any banking institution or other place or places

within or without the state, including but not limited to the

office of the treasurer of the county in which the authority

is located wholly or in part, as determined by the board, and

the securities at the option of the board may be in one or

more series, may be made subject to prior redemption in

advance of maturity in the order or by lot or otherwise at the

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time or times without or with the payment of the premium or

premiums not exceeding six percent of the principal amount of

each security so redeemed, as determined by the board.

Section 57. CAPITALIZATION OF COSTS.--Any resolution

authorizing the issuance of securities or other instrument

appertaining thereto may capitalize interest on any securities

during any period of construction or other acquisition

estimated by the board and one year thereafter and any other

cost of any project by providing for the payment of the amount

capitalized from the proceeds of the securities.

Section 58. OTHER SECURITY DETAILS.--Securities may be

issued in such manner, in such form, with such recitals,

terms, covenants and conditions and with such other details as

may be provided by the board in the resolution authorizing the

securities, or other instrument appertaining thereto, except

as otherwise provided in the Eastern Sandoval County Arroyo

Flood Control Act.

Section 59. REISSUANCE OF SECURITIES.--Any resolution

authorizing the issuance of securities or any other instrument

appertaining thereto may provide for their reissuance in other

denominations in negotiable or nonnegotiable form and

otherwise in such manner and form as the board may determine.

Section 60. NEGOTIABILITY.--Subject to the payment

provisions specifically provided in the Eastern Sandoval

County Arroyo Flood Control Act, the notes, warrants, bonds,

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any interest coupons thereto attached, temporary bonds and

interim debentures shall be fully negotiable within the

meaning of and for all the purposes of the Uniform Commercial

Code, except as the board may otherwise provide. Each holder

of such security, or of any coupon appertaining thereto, by

accepting such security or coupon shall be conclusively deemed

to have agreed that such security or coupon, except as

otherwise provided, is and shall be fully negotiable within

the meaning and for all purposes of the Uniform Commercial

Code.

Section 61. SINGLE BONDS.--Notwithstanding any other

provision of law, the board in any proceedings authorizing

securities under the Eastern Sandoval County Arroyo Flood

Control Act:

A. may provide for the initial issuance of one or

more securities, in this section called "bond", aggregating

the amount of the entire issue or a designated portion

thereof;

B. may make such provision for installment

payments of the principal amount of any such bond as it may

consider desirable;

C. may provide for the making of any such bond

payable to bearer or otherwise, registrable as to principal or

as to both principal and interest, and where interest accruing

thereon is not represented by interest coupons, for the

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endorsing of payments of interest on such bonds; and

D. may further make provision in any such

proceedings for the manner and circumstances in and under

which any such bond may in the future, at the request of the

holder thereof, be converted into securities of smaller

denominations, which securities of smaller denominations may

in turn be either coupon bonds or bonds registrable as to

principal or principal and interest or both.

Section 62. LOST OR DESTROYED SECURITIES.--If lost or

completely destroyed, any security may be reissued in the form

and tenor of the lost or destroyed security upon the owner

furnishing to the satisfaction of the board:

A. proof of ownership;

B. proof of loss or destruction;

C. a surety bond in twice the face amount of the

security and any coupons; and

D. payment of the cost of preparing and issuing

the new security.

Section 63. EXECUTION OF SECURITIES.--Any security

shall be executed in the name of and on behalf of the

authority and signed by the chair, with the seal of the

authority affixed thereto and attested by the secretary,

except for securities issued in book entry or similar form

without the delivery of physical securities.

Section 64. INTEREST COUPONS.--Except for any bonds

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that are registrable for payment of interest, interest coupons

payable to bearer and appertaining to the bonds shall be

issued and shall bear the original or facsimile signature of

the chair.

Section 65. FACSIMILE SIGNATURES.--Any of the officers,

after filing with the secretary of state the officer's manual

signature certified by the officer under oath, may execute or

cause to be executed with a facsimile signature in lieu of the

officer's manual signature any security authorized in the

Eastern Sandoval County Arroyo Flood Control Act; provided

that such a filing is not a condition of execution with a

facsimile signature of any interest coupon, and provided that

at least one signature required or permitted to be placed on

each such security, excluding any interest coupon, shall be

manually subscribed. An officer's facsimile signature has the

same legal effect as the officer's manual signature.

Section 66. FACSIMILE SEAL.--The secretary may cause

the seal of the authority to be printed, engraved, stamped or

otherwise placed in facsimile on any security. The facsimile

seal has the same legal effect as the impression of the seal.

Section 67. SIGNATURES OF PREDECESSORS IN OFFICE.--The

securities and any coupons bearing the signatures of the

officers in office at the time of the signing shall be the

valid and binding obligations of the authority,

notwithstanding that before the delivery thereof and payment

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therefor, any or all of the persons whose signatures appear on

those securities or coupons shall have ceased to fill their

respective offices.

Section 68. FACSIMILE SIGNATURES OF PREDECESSORS.--Any

officer authorized or permitted in the Eastern Sandoval County

Arroyo Flood Control Act to sign any security or interest

coupon, at the time of its execution and of the execution of a

signature certificate, may adopt as and for the officer's own

facsimile signature the facsimile signature of the officer's

predecessor in office in the event that such facsimile

signature appears upon the security or coupons appertaining

thereto, or upon both the security and such coupons.

Section 69. REPURCHASE OF SECURITIES.--The securities

may be repurchased by the authority out of any funds available

for such purpose from the project to which they pertain at a

price of not more than the principal amount thereof and

accrued interest, plus the amount of the premium, if any, that

might, on the next redemption date of such securities, be paid

to the holders thereof if such securities should be called for

redemption on such date pursuant to their terms, and all

securities so repurchased shall be canceled.

Section 70. CUSTOMARY PROVISIONS.--The resolution

authorizing the securities or other instrument appertaining

thereto may contain any agreement or provision customarily

contained in instruments securing securities, including

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without limiting the generality of the foregoing, covenants

designated in Section 76 of the Eastern Sandoval County Arroyo

Flood Control Act.

Section 71. SALE OF SECURITIES.--Any securities

authorized in the Eastern Sandoval County Arroyo Flood Control

Act, except for warrants not issued for cash and except for

temporary bonds issued pending preparation of definitive bond

or bonds, shall be sold at public or private sale at, above or

below par at a net effective interest rate not exceeding the

maximum net effective interest rate permitted by the Public

Securities Act, as amended and supplemented by the Eastern

Sandoval County Arroyo Flood Control Act.

Section 72. SALE DISCOUNT OR COMMISSION PROHIBITED.--No

discount, except as provided by the Eastern Sandoval County

Arroyo Flood Control Act, or commission shall be allowed or

paid on or for any security sale to any purchaser or bidder,

directly or indirectly, but nothing contained in that act

shall be construed as prohibiting the board from employing

legal, fiscal, engineering and other expert services in

connection with any project or facilities authorized in that

act and with the authorization, issuance and sale of

securities.

Section 73. APPLICATION OF PROCEEDS.--All money

received from the issuance of any securities authorized in the

Eastern Sandoval County Arroyo Flood Control Act shall be used

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solely for the purpose for which issued and the cost of any

project thereby delineated. Any accrued interest and any

premium shall be applied to the payment of the interest on, or

the principal of, the securities, or both interest and

principal, or shall be deposited in a reserve therefor, as the

board may determine.

Section 74. USE OF UNEXPENDED PROCEEDS.--Any unexpended

balance of such security proceeds remaining after the

completion of the acquisition or improvement and equipment of

the project or the completion of the purpose for which such

securities were issued shall be paid immediately into the fund

created for the payment of the principal of such securities

and shall be used therefor, subject to the provisions as to

the times and methods for their payment as stated in the

securities and the proceedings authorizing or otherwise

appertaining to their issuance, or so paid into a reserve

therefor.

Section 75. VALIDITY UNAFFECTED BY USE OF PROCEEDS.--

The validity of such securities shall not be dependent on nor

affected by the validity or regularity of any proceedings

relating to the acquisition or improvement and equipment of

the project or the proper completion of any project for which

the securities are issued. The purchaser or purchasers of the

securities shall in no manner be responsible for the

application of the proceeds of the securities by the authority

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or any of its officers, agents and employees.

Section 76. COVENANTS IN SECURITY PROCEEDINGS.--Any

resolution or trust indenture authorizing the issuance of

securities or any other instrument appertaining thereto may

contain covenants and other provisions, notwithstanding such

covenants and provisions may limit the exercise of powers

conferred by the Eastern Sandoval County Arroyo Flood Control

Act, in order to secure the payment of such securities in

agreement with the holders and owners of such securities, as

the board may determine, including without limiting the

generality of the foregoing, all such acts and things as may

be necessary or convenient or desirable in order to secure the

authority's securities, or in the discretion of the board tend

to make the securities more marketable, notwithstanding that

such covenant, act or thing may not be enumerated in that act,

it being the intention of that act to give the authority power

to do all things in the issuance of securities and for their

security except as specifically limited in that act.

Section 77. REMEDIES OF SECURITY HOLDERS.--Subject to

any contractual limitations binding upon the holders of any

issue or series of securities, or trustee therefor, including

the restriction of the exercise of any remedy to a specified

proportion, percentage or number of such holders, and subject

to any prior or superior rights of others, any holder of

securities, or trustee therefor, shall have the right and

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power for the equal benefit and protection of all holders of

securities similarly situated:

A. by mandamus or other suit, action or proceeding

at law or in equity to enforce the holder's rights against the

authority and the board and any of its officers, agents and

employees, and to require and compel the authority or the

board or any such officers, agents or employees to perform and

carry out its and their duties, obligations or other

commitments under the Eastern Sandoval County Arroyo Flood

Control Act and its and their covenants and agreements with

the holder of any security;

B. by action or suit in equity to require the

authority and the board to account as if they were the trustee

of an express trust;

C. by action or suit in equity to have appointed a

receiver, which receiver may enter and take possession of any

system or project or services revenues from which are pledged

for the payment of the securities, prescribe sufficient fees

derived from the operation thereof, and collect, receive and

apply all revenues or other money pledged for the payment of

the securities in the same manner as the authority itself

might do in accordance with the obligations of the authority;

and

D. by action or suit in equity to enjoin any acts

or things that may be unlawful or in violation of the rights

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of the holder of any security and to bring suit thereupon.

Section 78. LIMITATIONS UPON LIABILITIES.--Neither the

directors nor any person executing securities issued under the

Eastern Sandoval County Arroyo Flood Control Act shall be

liable personally on the securities by reason of the issuance

thereof. Securities issued pursuant to the Eastern Sandoval

County Arroyo Flood Control Act shall not be in any way a debt

or liability of the state or of any municipality or other

public body and shall not create or constitute any

indebtedness, liability or obligation of the state or of any

such municipality or other public body, either legal, moral or

otherwise, and nothing contained in that act shall be

construed to authorize the authority to incur any indebtedness

on behalf of or in any way to obligate the state or any

municipality or other public body, except the authority and

except as otherwise expressly stated or necessarily implied in

that act.

Section 79. CANCELLATION OF PAID SECURITIES.--Whenever

the treasurer shall redeem and pay any of the securities

issued under the provisions of the Eastern Sandoval County

Arroyo Flood Control Act, the treasurer shall cancel the same

by writing across the face thereof or stamping thereon the

word "paid", together with the date of its payment, sign the

treasurer's name thereto and transmit the same to the

secretary, taking the secretary's receipt therefor, which

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receipt shall be filed in the records of the authority. The

secretary shall credit the treasurer on the secretary's books

for the amount so paid.

Section 80. INTEREST AFTER MATURITY.--No interest shall

accrue on any security in the Eastern Sandoval County Arroyo

Flood Control Act authorized after it becomes due and payable;

provided that funds for the payment of the principal of and

the interest on the security and any prior redemption premium

due are available to the paying agent for such payment without

default.

Section 81. REFUNDING BONDS.--Any bonds issued under

the Eastern Sandoval County Arroyo Flood Control Act may be

refunded, without an election, but subject to provisions

concerning their payment and to any other contractual

limitations in the proceedings authorizing their issuance or

otherwise appertaining thereto, pursuant to a resolution or

resolutions to be adopted by the board in the manner provided

in that act for the issuance of other securities, to refund,

pay or discharge all or any part of the authority's

outstanding bonds, heretofore or hereafter issued, including

any interest thereon in arrears or about to become due, or for

the purpose of reducing interest costs or effecting other

economies or of modifying or eliminating restrictive

contractual limitations appertaining to the issuance of

additional bonds or any project, or any combination thereof.

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Section 82. METHOD OF ISSUANCE.--Any bonds issued for

refunding purposes may either be delivered in exchange for the

outstanding bonds authorized to be refunded or may be sold as

provided in the Eastern Sandoval County Arroyo Flood Control

Act for the sale of other bonds.

Section 83. LIMITATIONS UPON ISSUANCE.--No bonds may be

refunded under the Eastern Sandoval County Arroyo Flood

Control Act unless the holders of the bonds voluntarily

surrender them for exchange or payment or unless they either

mature or are callable for prior redemption under their terms

within ten years from the date of issuance of the refunding

bonds. Provision shall be made for paying the bonds within

that period of time. No maturity of any bonds refunded may be

extended over fifteen years nor may any interest on the bonds

be increased to any coupon rate exceeding the maximum net

effective interest rate permitted by the Public Securities

Act. The principal amount of the refunding bonds may exceed

the principal amount of the refunded bonds if the aggregate

principal and interest costs of the refunding bonds do not

exceed such unaccrued costs of the bonds refunded. The

principal amount of the refunding bonds may also be less than

or the same as the principal amount of the bonds refunded so

long as provision is duly and sufficiently made for their

payment.

Section 84. USE OF REFUNDING BOND PROCEEDS.--The

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proceeds of refunding bonds shall either be immediately

applied to the retirement of the bonds to be refunded or be

placed in escrow to be applied to the payment of the bonds

upon their presentation; provided, however, any accrued

interest and any premium appertaining to a sale of refunding

bonds may be applied to the payment of the interest or the

principal or both interest and principal or may be deposited

in a reserve therefor as the board may determine. The escrow

shall not necessarily be limited to refunding bond proceeds

but may include other money made available for such purpose.

Any escrowed proceeds pending such use may be invested or

reinvested in federal securities. Escrowed proceeds and

investments, together with any interest to be derived from any

such investment, shall be in an amount at all times sufficient

as to principal, interest, any prior redemption premium due

and any charges of the escrow agent payable therefrom to pay

the bonds refunded as they become due at their respective

maturities or due at designated prior redemption date or dates

upon which the board shall exercise a prior redemption option.

Upon establishment of an escrow in accordance with this

section, the refunded bonds payable therefrom no longer

constitute outstanding indebtedness of the authority.

Section 85. PAYMENT OF REFUNDING BONDS.--Refunding

revenue bonds may be made payable from any revenues derived

from the operation of the flood control system or any project,

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notwithstanding the pledge of such revenues for the payment of

the outstanding bonds issued by the authority that are to be

refunded is thereby modified. Any refunding revenue bonds

shall not be made payable from taxes unless the bonds thereby

refunded are payable from taxes.

Section 86. COMBINATION OF REFUNDING AND OTHER BONDS.--

Bonds for refunding and bonds for any other purpose or

purposes authorized in the Eastern Sandoval County Arroyo

Flood Control Act may be issued separately or issued in

combination in one series or more.

Section 87. SUPPLEMENTAL PROVISIONS.--Except as

specifically provided or necessarily implied in the Eastern

Sandoval County Arroyo Flood Control Act, the relevant

provisions of that act pertaining to bonds generally shall be

equally applicable in the authorization and issuance of

refunding bonds, including their terms and security, the bond

resolution, trust indenture, taxes and service charges and

other aspects of the bonds.

Section 88. BOARD'S DETERMINATION FINAL.--The

determination of the board that the limitations imposed upon

the issuance of refunding bonds under the Eastern Sandoval

County Arroyo Flood Control Act have been met shall be

conclusive in the absence of fraud or arbitrary and gross

abuse of discretion.

Section 89. ISSUANCE OF INTERIM DEBENTURES AND PLEDGE

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OF BONDS AS COLLATERAL SECURITY.--Notwithstanding any

limitation or other provision in the Eastern Sandoval County

Arroyo Flood Control Act, whenever a majority of the qualified

electors of the authority voting on a proposal to issue bonds

has authorized the authority to issue bonds for any purpose

authorized in that act, the authority is authorized to borrow

money without any other election in anticipation of taxes, the

proceeds of the bonds or any other revenues of the authority,

or any combination thereof, and to issue interim debentures to

evidence the amount so borrowed. Interim debentures may

mature at such time not exceeding a period of time equal to

the estimated time needed to effect the purpose for which the

bonds are so authorized to be issued, plus two years, as the

board may determine. Except as otherwise provided in this

section and in Sections 90 and 91 of the Eastern Sandoval

County Arroyo Flood Control Act, interim debentures shall be

issued as provided in that act for securities in Sections 47

through 80 of the Eastern Sandoval County Arroyo Flood Control

Act. Taxes, other revenues of the authority, including

without limiting the generality of the foregoing proceeds of

bonds to be thereafter issued or reissued or bonds issued for

the purpose of securing the payment of interim debentures may

be pledged for the purpose of securing the payment of the

interim debentures. Any bonds pledged as collateral security

for the payment of any interim debentures shall mature at such

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time as the board may determine, but in no event exceeding

forty years from the date of either any of such bonds or any

of such interim debentures, whichever date is earlier. Any

such bonds pledged as collateral security shall not be issued

in an aggregate principal amount exceeding the aggregate

principal amount of the interim debenture secured by a pledge

of such bonds nor shall they bear interest at any time which

with any interest accruing at the same time on the interim

debenture so secured exceeds six percent per year.

Section 90. INTERIM DEBENTURES NOT TO BE EXTENDED.--No

interim debenture issued pursuant to the provisions of Section

89 of the Eastern Sandoval County Arroyo Flood Control Act

shall be extended or funded except by the issuance or

reissuance of a bond or bonds in compliance with Section 91 of

that act.

Section 91. FUNDING.--For the purpose of funding any

interim debenture or interim debentures, any bond or bonds

pledged as collateral security to secure the payment of such

interim debenture or interim debentures may be reissued

without an election, and any bonds not previously issued but

authorized to be issued at an election for a purpose the same

as or encompassing the purpose for which the interim

debentures were issued may be issued for such a funding. Any

such bonds shall mature at such time as the board may

determine, but in no event exceeding forty years from the date

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of either any of the interim debentures so funded or any of

the bonds so pledged as collateral security, whichever date is

earlier. Bonds for funding, including but not necessarily

limited to any such reissued bonds, and bonds for any other

purpose or purposes authorized in the Eastern Sandoval County

Arroyo Flood Control Act may be issued separately or issued in

combination in one series or more. Except as otherwise

provided in Sections 89 and 90 of the Eastern Sandoval County

Arroyo Flood Control Act and in this section, any such funding

bonds shall be issued as is provided for refunding bonds in

Sections 81, 82, 84, 85, 87 and 88 of that act and provided

for securities in Sections 47 through 80 of that act.

Section 92. PUBLICATION OF RESOLUTION OR PROCEEDINGS.--

In its discretion, the board may provide for the publication

once in full of either any resolution or other proceedings

adopted by the board ordering the issuance of any securities

or, in the alternative, of notice thereof, which resolution,

other proceedings or notice so published shall state the fact

and date of such adoption and the place where such resolution

or other proceedings have been filed for public inspection and

also the date of the first publication of such resolution,

other proceedings or notice and also state that any action or

proceeding of any kind or nature in any court questioning the

validity of the creation and establishment of the authority,

or the validity or proper authorization of securities provided

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for by the resolution or other proceedings, or the validity of

any covenants, agreements or contracts provided for by the

resolution or other proceedings, shall be commenced within

sixty days after the first publication of such resolution,

other proceedings or notice.

Section 93. FAILURE TO CONTEST LEGALITY CONSTITUTES

BAR.--If no such action or proceedings are commenced or

instituted within sixty days after the first publication of

such resolution, other proceedings or notice, then all

residents and taxpayers and owners of property in the

authority and all public bodies and all other persons

whatsoever shall be forever barred and foreclosed from

instituting or commencing any action or proceeding in any

court or from pleading any defense to any action or

proceedings questioning the validity of the creation and

establishment of the authority, the validity or proper

authorization of such securities or the validity of any such

covenants, agreements or contracts. The securities,

covenants, agreements and contracts shall be conclusively

deemed to be valid and binding obligations in accordance with

their terms and tenor.

Section 94. CONFIRMATION OF CONTRACT PROCEEDINGS.--In

its discretion, the board may file a petition at any time in

the district court in and for any county in which the

authority is located wholly or in part, praying a judicial

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examination and determination of any power conferred or of any

tax or rates or charges levied or of any act, proceeding or

contract of the authority, whether or not the contract has

been executed, including proposed contracts for the

acquisition, improvement, equipment, maintenance, operation or

disposal of any project for the authority. Such petition

shall set forth the facts whereon the validity of such power,

assessment, act, proceeding or contract is founded and shall

be verified by the chair of the board. Such action shall be

in the nature of a proceeding in rem, and jurisdiction of all

parties interested may be had by publication and posting as

provided in the Eastern Sandoval County Arroyo Flood Control

Act. Notice of the filing of the petition shall be given by

the clerk of the court, under the seal thereof, stating in

brief outline the contents of the petition and showing where a

full copy of any contract therein mentioned may be examined.

The notice shall be served by publication in at least five

consecutive issues of a weekly newspaper of general

circulation published in the county in which the principal

office of the authority is located, and by posting the same in

the office of the authority at least thirty days prior to the

date fixed in the notice for the hearing on the petition.

Jurisdiction shall be complete after such publication and

posting. Any owner of property in the authority or person

interested in the contract or proposed contract or in the

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premises may appear and move to dismiss or answer the petition

at any time prior to the date fixed for the hearing or within

such further time as may be allowed by the court, and the

petition shall be taken as confessed by all persons who fail

so to appear.

Section 95. REVIEW AND JUDGMENT OF COURT.--The petition

and notice shall be sufficient to give the court jurisdiction,

and upon hearing the court shall examine into and determine

all matters and things affecting the question submitted, shall

make such findings with reference thereto and render such

judgment and decree thereon as the case warrants. Costs may

be divided or apportioned among any contesting parties in the

discretion of the trial court. Review of the judgment of the

court may be had as in other similar cases, except that such

review shall be applied for within thirty days after the time

of the rendition of such judgment or within such additional

time as may be allowed by the court within thirty days. The

rules of civil procedure shall govern in matters of pleading

and practice where not otherwise specified in the Eastern

Sandoval County Arroyo Flood Control Act. The court shall

disregard any error, irregularity or omission that does not

affect the substantial rights of the parties.

Section 96. PURPOSE OF TAX EXEMPTIONS.--The

effectuation of the powers authorized in the Eastern Sandoval

County Arroyo Flood Control Act shall and will be in all

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respects for the benefit of the people of the state, including

but not necessarily limited to those residing in the authority

exercising any power under that act, for the improvement of

their health and living conditions and for the increase of

their commerce and prosperity.

Section 97. PROPERTY EXEMPT FROM GENERAL TAXES.--The

authority shall not be required to pay any general (ad

valorem) taxes upon any property appertaining to any project

authorized in the Eastern Sandoval County Arroyo Flood Control

Act and acquired within the state nor the authority's interest

therein.

Section 98. SECURITIES AND INCOME THEREFROM EXEMPT.--

Securities issued under the Eastern Sandoval County Arroyo

Flood Control Act and the income therefrom shall forever be

and remain free and exempt from taxation by the state, the

authority and any other public body, except transfer,

inheritance and estate taxes.

Section 99. FREEDOM FROM JUDICIAL PROCESS.--Execution

or other judicial process shall not issue against any property

of the authority authorized in the Eastern Sandoval County

Arroyo Flood Control Act, nor shall any judgment against the

authority be a charge or lien upon its property.

Section 100. RESORT TO JUDICIAL PROCESS.--Section 99 of

the Eastern Sandoval County Arroyo Flood Control Act does not

apply to or limit the right of the holder of any security, the

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holder's trustee or any assignee of all or part of the

holder's interest, the federal government when it is a party

to any contract with the authority, and any other obligee

under that act to foreclose, otherwise to enforce, and to

pursue any remedies for the enforcement of any pledge or lien

given by the authority on the proceeds of taxes, service

charges or other revenues.

Section 101. LEGAL INVESTMENTS IN SECURITIES.--It shall

be legal for the state and any of its agencies, departments,

instrumentalities, corporations or political subdivisions or

any political or public corporation, any bank, trust company,

banker, savings bank or institution, any building and loan

association, savings and loan association, investment company

and any other person carrying on a banking or investment

business, any insurance company, insurance association or any

other person carrying on an insurance business and any

executor, administrator, curator, trustee or any other

fiduciary to invest funds or money in their custody in any of

the securities authorized to be issued pursuant to the

provisions of the Eastern Sandoval County Arroyo Flood Control

Act. Such securities shall be authorized security for all

public deposits. Nothing contained in this section with

regard to legal investments shall be construed as relieving

any public body or other person of any duty of exercising

reasonable care in selecting securities.

Section 102. OPEN MEETINGS ACT.--All actions and

business of the board, including the first board appointed by

the governor, shall be conducted pursuant to the Open Meetings

Act.

Section 103. LIBERAL CONSTRUCTION.--The Eastern

Sandoval County Arroyo Flood Control Act, being necessary to

secure and preserve the public health, safety and general

welfare, the rule of strict consideration shall have no

application to that act, but it shall be liberally construed

to effect the purposes and objects for which that act is

intended.

Section 104. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.

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