Sec. 6.06. APPROVAL AND REGISTRATION.    (a)  Bonds issued by the district and the records relating to their issuance must be submitted to the attorney general for examination as to their validity.
(b) If the attorney general finds that the bonds have been authorized in accordance with the law, the attorney general shall approve them, and the comptroller of public accounts shall register the bonds.
(c) Following approval and registration, the bonds are incontestable and are binding obligations according to their terms.
Sec. 6.07. REFUNDING BONDS.    (a)  Refunding bonds of the district may be issued to refund and pay off an outstanding indebtedness the district has issued or assumed.
(b) The bonds must be issued in the manner provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).
(c) The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness.  If the refunding bonds are to be sold and the proceeds applied to the payment of outstanding indebtedness, the refunding bonds must be issued and payments made in the manner provided by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas Civil Statutes).
Sec. 6.08. LEGAL INVESTMENTS;  SECURITY FOR DEPOSITS.    (a)  District bonds are legal and authorized investments for:
(1) a bank;
(2) a savings bank;
(3) a trust company;
(4) a savings and loan association;
(5) an insurance company;
(6) a fiduciary;
(7) a trustee;
(8) a guardian;  and
(9) the sinking fund of a municipality, county, school district, or other political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund.
(b) District bonds may secure deposits of public funds of the state or a municipality, county, school district, or other political subdivision of the state.  The bonds are lawful and sufficient security for deposits to the extent of their value, if accompanied by all unmatured coupons.
Sec. 6.09. MANDAMUS BY BONDHOLDERS.  In addition to all other rights and remedies provided by law, if the district defaults in the payment of principal, interest, or redemption price on its bonds when due or if it fails to make payments into any fund or funds created in the orders or resolutions authorizing the issuance of the bonds or defaults in the observation or performance of any other covenants, conditions, or obligations set forth in the orders or resolutions authorizing the issuance of its bonds, the owners of any of the bonds are entitled to a writ of mandamus issued by a court of competent jurisdiction compelling and requiring the district and its officials to observe and perform the covenants, obligations, or conditions prescribed in the orders or resolutions authorizing the issuance of the district's bonds.
Sec. 6.10. APPLICATION OF OTHER LAWS.  Bonds of the district are considered bonds under the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).
ARTICLE 7. TAXES

Sec. 7.01. TAX STATUS OF BONDS.  Since the district created under this Act is a public entity performing an essential public function, bonds issued by the district, any transaction relating to the bonds, and profits made in the sale of the bonds are free from taxation by the state or by a municipality, county, special district, or other political subdivision of the state.
Sec. 7.02. LEVY OF TAXES.    (a)  The board may annually levy taxes in the district in an amount necessary to pay the principal of and interest on bonds issued by the district and the expense of assessing and collecting taxes.  
(b) The district may annually levy and collect a maintenance and operating tax in an amount not to exceed five cents on each $100 of assessed valuation of property in the district to pay maintenance and operating expenses of the district.
(c) The combined tax rate for all purposes may not exceed 10 cents on each $100 of assessed valuation of property in the district.
Sec. 7.03. BOARD AUTHORITY.    (a)  The board may levy taxes for the entire year in which the district is created.  
(b) The board shall levy taxes on all property within the boundaries of the district subject to district taxation.
Sec. 7.04. TAX RATE.  In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation.  On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax collector.
Sec. 7.05. TAX APPRAISAL, ASSESSMENT, AND COLLECTION.    (a)  The Tax Code governs the appraisal, assessment, and collection of district taxes.  
(b) The board may provide for the appointment of a tax collector for the district or may contract for the collection of taxes as provided by the Tax Code.
ARTICLE 8. CHANGE IN BOUNDARIES

Sec. 8.01. EXPANSION OF DISTRICT TERRITORY.    (a)  Registered voters of a defined territory that is not included in the district may file a petition with the secretary of the board requesting the inclusion of the territory in the district.  The petition must be signed by at least 50 registered voters of the territory or a majority of those voters, whichever is less.  
(b) The board by order shall set a time and place to hold a hearing on the petition to include the territory in the district.  The board shall set a date for the hearing that is after the 30th day after the date the board issues the order.
(c) If after the hearing the board finds that annexation of the territory into the district would be feasible and would benefit the district, the board may approve the annexation by a resolution entered in its minutes.  The board is not required to include all of the territory described in the petition if the board finds that a modification or change is necessary or desirable.
(d) Annexation of territory is final when approved by a majority of the voters at an election held in the district and by a majority of the voters at a separate election held in the territory to be annexed.  If the district has outstanding debts or taxes, the voters in the election to approve the annexation must also determine if the annexed territory will assume its proportion of the debts or taxes if added to the district.
(e) The election ballots shall be printed to provide for voting for or against the following, as applicable:
(1) "Adding (description of territory to be added) to the Gaines County Solid Waste Management District."
(2) "(Description of territory to be added) assuming its proportionate share of the outstanding debts and taxes of the Gaines County Solid Waste Management District, if it is added to the district."
(f) The election shall be held after the 45th day and on or before the 60th day after the date the election is ordered.  The election shall be ordered and notice of the election shall be given in accordance with the Election Code.  Section 41.001(a), Election Code, does not apply to an election held under this section.