FRANCHISES AND RIGHTS RELATING TO NAVIGABLE CANALS AND WATERWAYS.

(a) The authority may grant a franchise or right to any person for the use of navigable canals or waterways and all auxiliary navigational systems or facilities to aid navigation of navigable canals or waterways of the San Antonio River.

(b) Unless granted a franchise by the authority, a person may not provide, maintain, or operate a facility or aid of navigation connected with a navigable canal or waterway described by Subsection (a) or an auxiliary navigational system or facility that is intended for public use.

(c) The board may grant a franchise by ordinance. A franchise:

(1) may not exceed a term of 50 years; and

(2) may be for the design, construction, repair, enlargement, alteration, maintenance, operation of, and service from or use of any facility to be provided for use in navigation on navigable canals or waterways and all auxiliary navigational systems or facilities, whether on land or in or on water.

(d) An ordinance granting a franchise:

(1) must:

(A) contain provisions:

(i) adequate to regulate the fees, tolls, rates, or exactions to be demanded for the use of, or service to be rendered by any means or facility to be provided or operated under, the franchise; and

(ii) reasonably required to procure service adequate to serve the public necessity and convenience; and

(B) be uniform, reasonable, and without discrimination against any person with regard to any charges or conditions of use or service; and

(2) may:

(A) contain provisions for the payment of reasonable fees or other charges to be paid to the authority; and

(B) provide reasonable and commensurate penalties as provided by Section 49.004, Water Code, to procure observance of the conditions of a franchise granted or compliance with the rules established by the ordinance.

(e) The board may:

(1) require uniform and adequate analytic accounting systems and forms and periodic reports based on those systems and forms;

(2) audit a franchise holder;

(3) provide for other reasonable regulations designed to protect the public; and

(4) by ordinance:

(A) establish rules necessary or designed to:

(i) protect physical property owned by the authority or owned or operated by a franchise holder; or

(ii) effect the safety or efficient use of property described by Subparagraph (i); and

(B) provide for reasonable and commensurate penalties for a violation of this section, as provided by Section 49.004, Water Code.

(f) Unless otherwise provided, a franchise granted under this section may be revoked or suspended only by order of a district court within the county in which the authority may maintain its general office.