BILL ANALYSIS


                                                        H.B. 3179
                                               By: Harris (Brown)
                                                            Water
                                                          5-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Clear Creek Watershed falls into Fort Bend, Brazoria, Galveston
and Harris counties, and encompasses numerous political
subdivisions that include counties, cities, utility districts and
drainage districts. Presently, the watershed area covers
approximately 260 square miles of land and has a population of
approximately 274,000 which is expected to grow to 380,000 by the
year 2000. Since about 1960, increases in area development have
combined with the flat land surfaces and clay soils to produce
runoff rates that exceed the capacity of the watershed drainage
system and make flooding a costly problem. Tropical storm Claudette
in July 1979 delivered 10-25 inches of rainfall across the entire
watershed, which resulted in flooding that caused residential and
commercial damages estimated at over $90 million. Total property
damages in the watershed were estimated at $230 million. Under
existing conditions, average annual flood damages in the watershed
are estimated at about $6.6 million.

PURPOSE

As proposed, H.B. 3179 provides for the creation, administration,
powers, duties, operation, and financing of the Clear Creek
Watershed Regional Flood Control District, granting the power of
eminent domain, authorizing the issuance of bonds, providing for
the levy, assessment, and collection of ad valorem taxes, and
providing for a civil penalty.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the board of directors of the Clear Creek Watershed Regional
Flood Control District under SECTION 17 of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. DEFINITIONS. Defines "board," "commission,"
"commissioners courts," "director," "district," and "person."

SECTION 2. Creates the Clear Creek Watershed Regional Flood Control
District (district) as a conservation and reclamation district
under Section 59, Article XVI, Texas Constitution, subject to
approval at a confirmation election under Section 5 of this Act.
Provides that the district is a governmental agency and body
politic and corporate.

SECTION 3. BOUNDARIES OF DISTRICT. Sets forth the boundaries of the
district.

SECTION 4. BOARD OF DIRECTORS. (a) Provides that the district is
governed by a board of five directors appointed as provided by this
section.

     (b) Sets forth provisions to take place on or before 90 days
     after the effective date of this Act.
     
     (c) Requires the commissioners court that appointed the
     director, on expiration of a director's term, to appoint a
     successor to serve a four-year term that expires on September
     30 of the fourth year after the expiration of the previous
     director's term.
     
     (d) Requires the commissioners court that appointed the
     director, on vacancy of a director's office during the
     director's term, to appoint a person to serve as director for
     the remainder of the term.
     
     (e) Prohibits a commissioners court from appointing a person
     as a director unless at the time of appointment the person
     holds an elective office of a political subdivision in the
     district other than the office of county commissioner.
     Authorizes a person to be reappointed for multiple terms as a
     director if the person holds, at the time of each appointment,
     an elective office as required for initial appointment.
     
     (f) Requires a director to qualify by taking the official oath
     of office required of state officers.
     
     (g) Provides that a director holds office until a successor is
     appointed and qualifies for office.
     
     (h) Provides that a director is not entitled to receive
     compensation for service on the board, but may be reimbursed
     for actual travel expenses.
     
     (i) Requires the initial board to hold a regular meeting and
     elect officers as soon as practicable after appointment.
     
     (j) Requires the board to elect from its members a chair, vice
     chair, and secretary. Provides that a director elected to a
     board office serves in that position for one year. Requires
     the chair, or if the chair is absent, the vice chair, to
     preside over meetings of the board. Provides that the chair,
     vice chair, and secretary shall perform the duties and may
     exercise the powers specifically given them by this Act or by
     resolution or order of the board.
     
     (k) Provides that three directors constitute a quorum for the
     transaction of district business. Provides that an action of
     the board is valid only with the affirmative vote of three
     directors.
     
     (l) Authorizes the board to adopt bylaws consistent with this
     Act. Authorizes the bylaws to be amended as necessary for the
     management and operation of the district. Requires the board
     to hold regular and special meetings at times and dates
     determined by the board. Requires the board to maintain
     complete and accurate records of the district's accounts,
     contracts, plans, notices, receipts, and meetings and other
     proceedings in a secure manner at the district's principal
     office. Requires the records to be open to public inspection
     at reasonable times.
     
     (m) Requires an advisory committee to the board composed of
     one representative from each political subdivision within the
     district to be established. Requires members of the advisory
     committee to be appointed by each political subdivision from
     elected members of the subdivision's governing body.
     
     SECTION 5.     CONFIRMATION ELECTION. (a) Prohibits the district from
exercising a power granted by this Act other than a power granted
by this section until the creation of the district is confirmed by
a majority of the resident electors of the district voting at a
confirmation election called under this section. Requires the
initial board to call a confirmation election to be held no later
than two years after the effective date of this Act within the
boundaries of the proposed district. Authorizes the board to call
subsequent confirmation elections if the district is not confirmed
at the first election. Requires expenses of a confirmation election
to be paid in equal shares by each of the commissioners courts and
to be repaid by the district if creation of the district is
confirmed. Provides that Section 41.001(a), Election Code, does not
apply to a confirmation election.

     (b) Requires the board to give notice of a confirmation
     election. Requires the notice to state the date and polling
     places for the election and the proposition to be voted on.
     Requires the board to publish the notice once in a newspaper
     or newspapers of general circulation in the proposed district.
     Requires the notice to be published at least 35 days before
     the date set for the election.
     
     (c) Sets forth the required language for the ballot at a
     confirmation election.
     
     (d) Requires the presiding judge of each polling place,
     immediately after a confirmation election, to return the
     results of the election to the board. Requires the board to
     canvass the returns.
     
     (e) Requires the board, if a majority of the votes cast at a
     confirmation election favor the creation of the district, to
     declare the district confirmed and enter the results in its
     minutes. Requires the board to also file a copy of the
     election results with the commission.
     
     (f) Prohibits another election to confirm creation of the
     district, if a majority of the voters at a confirmation
     election vote against the creation of the district, from being
     called and held for at least 12 months following the most
     recent confirmation election. Provides that if the district is
     not confirmed before the fifth anniversary of the effective
     date of this Act, this Act expires.
     
     SECTION 6.     PERSONNEL. (a) Authorizes the board to employ a general
manager as the chief administrative officer of the district.
Authorizes the board to delegate to the general manager full
authority to manage and operate the affairs of the district,
subject only to orders of the board. Requires the general manager
to execute a bond in an amount determined by the board, payable to
the district, conditioned on the faithful performance of the
general manager's duties. Requires the district to pay for the
bond.

     (b) Requires the board to appoint a professional civil
     engineer for the district, who shall be entitled to the
     compensation provided in the district's budget. Requires the
     district engineer to execute a bond in an amount determined by
     the board, payable to the district, conditioned on the
     faithful performance of the district engineer's duties.
     Requires the district to pay for the bond.
     
     (c) Authorizes the board to authorize the employment of other
     persons necessary for the proper management of the business
     and operation of the district, ant to employ or contract with
     specialized personnel necessary to implement this Act.
     Requires the board to determine the terms of employment or
     contracts and the compensation to be paid to employees or
     persons under contract under this section. Requires the board
     to require each employee or person under contract who
     collects, pays, or handles district money to furnish a bond,
     payable to the district, in an amount sufficient to protect
     the district from financial loss resulting from actions of the
     employee or person under contract. Requires each bond to be
     conditioned on the faithful performance of the duties of the
     employee or person under contract and on accounting for all
     money and property of the district that the employee or person
     under contract handles. Requires the district to pay for each
     bond.
     
     SECTION 7.     DISTRICT OFFICE. Requires the board to designate the
location of the principal office of the district at any place in
the district.

SECTION 8. GENERAL POWERS AND DUTIES. (a) Requires the district to
develop a flood control and drainage plan under the provisions of
this Act for all land in the district, including the main channel
and all tributaries of Clear Creek.

     (b) Sets forth requirements in accordance with the flood
     control and drainage plan for the district.
     
     (c) Sets forth provisions under which the district, under a
     written agreement with a political subdivision and in
     accordance with the flood control and drainage plan, may
     construct in whole or in part improvements on any water course
     or land in the district.
     
     (d) Authorizes the district to issue bonds under this Act
     supported by ad valorem taxes on property in the district to
     finance up to one-half the cost of construction under
     Subsection (c) if the district finds that the project will not
     be constructed without the use of the ad valorem taxes.
     
     (e) Authorizes the district to issue bonds supported by
     revenues from contracts with political subdivisions under
     Section 39 to finance all or part of the cost of construction
     under this section.
     
     (f) Sets forth authorized provisions for the district.
     
     (g) Requires the district to advise, consult, and cooperate
     with local governments on matters regarding the watershed.
     
     SECTION 9.     FLOOD CONTROL AND DRAINAGE PLAN. (a) Requires the board
to direct the district engineer to prepare a flood control and
drainage plan including certain provisions.

     (b) Requires the district engineer to file the completed plan
     with the board and the commissioners courts.
     
     (c) Provides that the district engineer, in preparing the
     plan, may exercise the powers and shall exercise the duties
     provided by Sections 56.022 and 56.023, Water Code.
     
     (d) Authorizes the district engineer, in preparing the plan,
     to consider and use all or part of any previously prepared
     flood control and drainage plan that covers any area in the
     district, including the Clear Creek Regional Watershed Plan as
     adopted by the Clear Creek Watershed Steering Committee.
     
     SECTION 10.    NOTICE AND HEARING ON FLOOD CONTROL AND DRAINAGE
PLAN. (a) Requires the board, on receipt of the completed flood
control and drainage plan, to schedule a public hearing to consider
adoption of the plan. Requires the board to publish notice of the
hearing at least once in a newspaper with general circulation in
the district not less than 30 days before the date set for the
hearing.

     (b) Authorizes any person who resides or owns property in the
     district or a political subdivision located in whole or in
     part in the district, to appear at the hearing before the
     board and present evidence or testify for or against all or
     part of the plan.
     
     SECTION 11.    ADOPTION OF FLOOD CONTROL AND DRAINAGE PLAN. (a)
Requires the board, after holding the public hearing required by
Section 10, to issue its findings and decisions.

     (b) Requires the board, if the board finds that the flood
     control and drainage plan requires changes before it can be
     adopted, to direct the district engineer to make the necessary
     changes. Requires the district engineer to make the changes
     and resubmit the plan to the board.
     
     (c) Authorizes the board, without further public hearing, to
     continue to direct the district engineer to make changes to
     the plan until the board finds the plan acceptable for
     adoption.
     
     (d) Requires the board, if the board finds that no changes are
     required in the plan, or if the district engineer has made all
     necessary changes to the plan under Subsections (b) and (c),
     to submit the plan to the commissioners courts. Authorizes the
     commissioners courts to consider the plan and recommend
     changes to the plan. Requires the board, if the board and
     commissioners courts cannot agree on changes to the plan, to
     submit the provisions in the plan that are in dispute to the
     district engineer for resolution of the dispute. Provides that
     the decision of the district engineer is final. Requires the
     board, not earlier than 30 days after the plan is submitted to
     the commissioners courts, to adopt the plan as revised to
     reflect all necessary changes.
     
     SECTION 12.    AMENDMENT OF FLOOD CONTROL AND DRAINAGE PLAN.
Authorizes the board to amend the flood control and drainage plan
as necessary to accomplish the purpose stated in Section 9.

SECTION 13.    IMPROVEMENTS TO BE CONSTRUCTED. (a) Authorizes only
improvements compatible with the flood control and drainage plan
and adopted by the board to be constructed.

     (b) Requires improvements and maintenance on the main channel
     of Clear Creek to be constructed and performed only by the
     district. Authorizes the district to cause improvements and
     maintenance to the main channel of Clear Creek to be
     constructed and performed through contracts with other persons
     and political subdivisions, but the district retains
     responsibility for assuring that all construction and
     maintenance is done in conformance with the plan.
     
     (c) Authorizes all improvements and maintenance on lands
     draining into Clear Creek or its tributaries and improvements
     and maintenance to channels other than the main channel of
     Clear Creek to be constructed or performed by other political
     subdivisions or persons in conformance with the plan.
     Authorizes the district to construct improvements and perform
     maintenance under this subsection only under agreements with
     other political subdivisions.
     
     SECTION 14.    LOCAL COOPERATION. Requires the district to
cooperate with other political subdivisions as much as possible to
provide uniform programs and coordinated planning.

SECTION 15.    DISTRICT SUPERIOR IN FLOOD CONTROL AND DRAINAGE
MATTERS. Provides that the district has primary jurisdiction within
its boundaries over all matters affecting flood control and
drainage of land and may take any action necessary to assure
compliance with the flood control and drainage plan.

SECTION 16.    CERTIFICATE REQUIRED FOR ACTIVITY AFFECTING FLOOD
CONTROL OR DRAINAGE. Prohibits a person or political subdivision
from engaging in an activity that will affect flood control or
drainage in the district without obtaining a certificate from the
board.

SECTION 17.    EXEMPTIONS. Authorizes the board, after notice and
hearing, to adopt a rule or issue and order that exempts a
specified activity from Section 16. Provides that if a political
subdivision has its plan approved by the board, any improvements
within the subdivision which are consistent with the approved plan
are exempt from certification by the board. Authorizes the board to
exempt an activity only if the board, after consultation with the
district engineer, finds that the activity will have at most a
minimal impact on flood control and drainage.

SECTION 18.    NOTICE OF ACTIVITIES AFFECTING FLOOD CONTROL OR
DRAINAGE. (a) Requires a person or political subdivision that plans
to engage in an activity that will affect flood control or drainage
in the district to submit written notice to the board of the intent
to engage in the activity, accompanied by plans, specifications,
and other information relating to the activity.

     (b) Requires a person or political subdivision to submit the
     notice and other information required by Subsection (a) in the
     form and manner and within the time provided by board rules.
     
     SECTION 19.    CONSIDERATION OF ACTIVITY BY ENGINEER. (a) Requires
the board, on receiving notice of a proposed activity under Section
18, to submit the notice and other information to the district
engineer for consideration.

     (b) Requires the district engineer to examine the notice and
     other information to make certain determinations.
     
     (c) Requires the district engineer to consult with the person
     or political subdivision submitting the notice and information
     and suggest changes in the proposed plans and specifications
     for the activity necessary to make the activity compatible
     with the flood control and drainage plan.
     
     (d) Requires the district engineer, if the district engineer
     and the person or political subdivision proposing an activity
     agree to plans and specifications for the activity that are
     compatible with the flood control and drainage plan as
     determined by the district engineer, to recommend that the
     board issue a certificate authorizing the activity. Requires
     the district engineer, if the district engineer and the person
     or political subdivision proposing an activity cannot agree,
     to recommend that the board decline to issue a certificate
     authorizing the activity. Requires the district engineer's
     recommendation to be included in a brief written report to the
     board stating the district engineer's reasons for the
     recommendation.
     
     SECTION 20.    BOARD CONSIDERATION AND ACTION. (a) Authorizes the
board, on receiving the district engineer's report, to issue a
certificate without giving notice or holding a public hearing to
consider the issuance.

     (b) Requires the board, if the board intends to deny issuance
     of a certificate, to first give notice and hold a public
     hearing in accordance with the district's rules to consider
     the issuance of the certificate. Requires the board, after
     conducting the hearing, to issue a written decision granting
     or denying the certificate or granting the certificate subject
     to specific requirements. Requires the decision to state the
     findings of the board in making the decision.
     
     SECTION 21.    OBSTRUCTIONS AND STRUCTURES. (a) Prohibits a person
or political subdivision from placing an obstruction or construct
or alter a structure on land in the district if the obstruction or
structure is not compatible with the flood control and drainage
plan and the district has not issued a certificate for the
activity.

     (b) Authorizes the board, after notice and hearing, to issue
     an order directing a person or political subdivision to remove
     or make changes to an obstruction or structure constructed
     after adoption of the flood control and drainage plan as
     necessary to comply with the plan.

SECTION 22.    INJUNCTIVE RELIEF. Authorizes the board, if a person
or political subdivision engages in an activity that will affect
the flood control or drainage in the district without a certificate
or places an obstruction or constructs or alters a structure in
violation of an order issued by the board under Section 21, to sue
in a district court in any county in which the activity is
occurring or obstruction is built for injunctive relief to restrain
the person or political subdivision from continuing or threatening
to continue the violation or to require the person or political
subdivision to remove an obstruction or structure.

SECTION 23.    CIVIL PENALTY. (a) Subjects a person or political
subdivision that violates Section 16 or 21 or any order issued by
the board under Section 16 or 21 to a civil penalty of not less
than $100 nor more than $1,000 for each violation or each day of a
continuing violation.

     (b) Authorizes the court, if a suit is filed under this
     section to recover a civil penalty, to include in any final
     judgment in favor of the district an award to cover court
     costs and reasonable attorney's fees.
     
     SECTION 24.    EMINENT DOMAIN. (a) Authorizes the district to
acquire land for district improvements by condemnation when the
board determines, after notice and hearing, that condemnation is
necessary.

     (b) Provides that the district shall exercise the power of
     eminent domain as provided by Chapter 21, Property Code, but
     is not required in an appeal to post a bond or make a deposit.
     
     (c) Requires the district, if the district, in the exercise of
     the power of eminent domain, makes necessary any alteration of
     the construction of a highway, railroad, electric transmission
     line, telephone, or telegraph property or facility, or
     pipeline, to pay the cost of the necessary action so as to
     provide comparable replacement of any replaced facility, less
     the replaced facility's net salvage value.
     
     SECTION 25.    CONSTRUCTION CONTRACTS. (a) Requires construction
contracts of the district to be competitively bid in accordance
with Chapter 271B, Local Government Code.

     (b) Requires the district to comply with Sections 66.208-66.213, Water Code.
     
     SECTION 26.    USE OF DISTRICT MONEY. (a) Authorizes the board to
use district money for construction costs, acquisition of property,
maintenance of and improvements to flood control and drainage
systems of the district, payment of debt service requirements, and
establishment of appropriate reserves.

     (b) Authorizes the district's money to be disbursed only be
     check, draft, order, or other written instrument that is
     signed by a person or persons authorized by the board.
     
     SECTION 27.    INVESTMENTS. Requires the board to invest district
money in accordance with the Public Funds Investment Act (Section
2256.001 et seq., Government Code). Authorizes the board to allow
an authorized district representative to invest and reinvest the
district's money and withdraw money from appropriate district
accounts for investments on terms the board considers advisable.

SECTION 28.    BUDGET. (a) Requires the board to annually prepare
a budget covering all proposed expenditures for the succeeding
year. Requires the budget to contain a complete financial statement
of the district.

     (b) Requires the board to conduct a public hearing on the
     proposed budget on a date set by the board after August 15 and
     before the levy of district taxes. Requires the board to give
     public notice of the hearing by publication in a newspaper of
     general circulation in the district at least 15 days before
     the hearing.
     
     SECTION 29.    ISSUANCE OF BONDS. (a) Sets forth authorizations for
the district.

     (b) Authorizes the district to issue bonds in various series
     or issues. Authorizes the bonds to mature serially or
     otherwise but may not mature more than 40 years from their
     date or dates of issuance.
     
     (c) Provides that the district's bonds and interest coupons,
     if any, are investment securities under the terms of Chapter
     8, Business and Commerce Code, and may be registered as to
     principal or principal and interest or may be issued in book
     entry form. Authorizes the district's bonds to be made
     redeemable before maturity at the option of the district or to
     contain a mandatory redemption provision. Authorizes the
     district's bonds to be issued in the form, denomination and
     manner provided by the board in the resolution or order
     authorizing issuance of the bonds. Authorizes the district to
     provide for the flow of funds, the establishment and
     maintenance of an interest, sinking, reserve, or other fund,
     and to make covenants with respect to the bonds and the ad
     valorem taxes or revenues pledged to secure the bonds.
     
     (d) Authorizes the district to prohibit the further issuance
     of bonds or other obligations payable from any pledged ad
     valorem taxes or revenues or to reserve the right to issue
     additional bonds secured by a pledge of ad valorem taxes or
     revenues on a parity with or subordinate to the pledge
     securing bonds issued earlier.
     
     (e) Provides that the orders or resolutions of the board
     issuing bonds to contain other provisions and covenants as the
     board may determine. Authorizes the board to adopt and have
     executed any other proceedings or instruments necessary in
     connection with the issuance of bonds.
     
     (f) Subjects the district's bonds to Article 717k-6, V.T.C.S.,
     except as provided by this Act.
     
     SECTION 30.    BOND ELECTION. (a) Prohibits the district from
issuing bonds secured by ad valorem taxes, other than refunding
bonds, until the bonds have been authorized by a majority vote of
the voters qualified to vote and actually voting in the district at
an election called and held for that purpose.

     (b) Requires the board order calling a bond election under
     this section to state the nature and date of the election, the
     hours and location of the polling places, the amount of bonds
     to be authorized, and the maximum maturity of the bonds.
     Requires notice of a bond election to be given as provided by
     Section 5. Requires the election to be held in accordance with
     the Election Code, except as provided by this Act. Authorizes
     a bond election to be called in conjunction with a
     confirmation election under Section 5. Requires the ballots to
     provide for voting for or against the issuance of bonds and
     the levy of ad valorem taxes to secure payment of the bonds.
     Requires the board to canvass the returns and declare the
     results of the election. Authorizes the board, if a majority
     of the qualified voters voting at the election vote in favor
     of the issuance of bonds and the levy of taxes, to issue,
     sell, and deliver the authorized bonds, receive and use the
     bond proceeds for their intended purposes, and levy, assess,
     and collect ad valorem taxes on all taxable property in the
     district in an amount sufficient to pay interest on and
     principal of the bonds.
     
     SECTION 31.    REFUNDING BONDS. Authorizes the district to issue
refunding bonds for the purpose and in the manner provided by
general law.

SECTION 32.    APPROVAL AND REGISTRATION OF BONDS. Requires the
board to submit all bonds issued by the district to the attorney
general for examination. Requires the attorney general, if the
attorney general finds that the bonds have been authorized in
accordance with law, to approve the bonds, and the comptroller of
public accounts shall register the bonds. Provides that after
approval and registration the bonds are incontestable in any court
or other forum for any reason and are valid and binding obligations
in accordance with their terms for all purposes.

SECTION 33.    USE OF BOND PROCEEDS. Authorizes the board, from the
proceeds of the sale of bonds, to set aside an amount for the
payment of interest expected to accrue during a period of
construction of improvements or facilities not to exceed three
years, and an amount necessary to pay all expense incurred and to
be incurred in the issuance, sale, and delivery of the bonds.
Authorizes the proceeds from the initial sale of the district's
bonds to be used to pay expenses related to the district's
confirmation.

SECTION 34.    BONDS AUTHORIZED INVESTMENTS. Sets forth entities
for which bonds issued by the district are legal and authorized
investments. Sets forth entities for which district bonds are
eligible and lawful security.

SECTION 35.    REMEDIES. Sets forth provisions under which the
owner of a bond issued by the district may obtain a writ of
mandamus requiring the district to perform its obligations under
the bond.

SECTION 36.    TAX-FREE STATUS. Provides that bonds issued by the
district, any transaction relating to the district's bonds, and
profits made in the sale of district bonds are free from taxation
by the state or a political subdivision of the state.

SECTION 37.    MAINTENANCE TAX. (a) Authorizes the district to
levy, asses, and collect an annual ad valorem tax on all taxable
property in the district for the maintenance, operation, upkeep,
and improvement of the district and its facilities, properties, and
improvements.

     (b) Requires an ad valorem maintenance tax under Subsection
     (a) to be authorized by a majority vote of the voters
     qualified to vote and voting in the district at an election
     called and held for that purpose.
     
     (c) Sets forth additional language for the ballot.
     
     (d) Authorizes subsequent elections to be called to increase,
     reduce, or abate a maintenance tax.
     
     (e) Requires notice of the election and the manner of holding
     the election to be as provided in Section 5.
     
     (f) Authorizes maintenance taxes and bonds to be authorized at
     the same election, including an election held in conjunction
     with a district confirmation election under Section 5.
     
     (g) Requires an election authorizing a maintenance tax to be
     held in accordance with the Election Code, except as provided
     in this Act.
     
     SECTION 38.    IMPOSITION OF TAXES. (a) Authorizes the district to
annually levy ad valorem taxes approved in elections under Sections
30 and 37 to pay the principal of and interest on district bonds,
the expense of assessing and collecting taxes, and the expense of
operating and maintaining the district and its facilities.
Authorizes the board to levy taxes for the entire year in the year
in which the district is confirmed.

     (b) Requires the district to levy taxes on all property in the
     district subject to taxation. Requires the board, in setting
     the rate, to take into consideration the income of the
     district from sources other than taxation. Requires the board
     to make the levy and certify it to the tax assessor-collector.
     
     (c) Provides that the Tax Code governs the appraisal,
     assessment, and collection of district taxes. Authorizes the
     board to provide for the appointment of a tax assessor-collector for the district or to contract for the assessment
     and collection of taxes as provided by the Tax Code.
     
     SECTION 39.    JOINT PROJECTS. (a) Authorizes the district to issue
bonds secured by revenues arising from a contract with a political
subdivision located in the district for the construction of an
improvement identified in the flood control and drainage plan.
Requires the district to provide the proceeds from the bonds to the
local political subdivision for the construction of the
improvement, or, if the contract with the political subdivision
requires the district to construct said improvements, the district
shall use the proceeds for the required construction. Subjects
bonds issued under this section to Sections 29, 31, 32, and 33,
except that any provision associated with the authorization, levy,
or collection of an ad valorem tax does not apply.

     (b) Authorizes a political subdivision located in the district
     to enter into any contract with the district that is
     considered appropriate by its governing body. Authorizes the
     political subdivision to pledge to the payment of the contract
     any source of revenue available to the political subdivision,
     including the levy and collection of ad valorem taxes, if the
     political subdivision has the authority to levy and collect
     those taxes. Provides that to the extent a political
     subdivision pledges money to be derived from any of its own
     systems, the payments constitute an operating expense of that
     system.
     
     SECTION 40.    CONSTRUCTION. Requires this Act to be liberally
construed to accomplish the Act's purposes.

SECTION 41.    FINDING OF BENEFIT. Provides that all property in
the district will be benefited by the district and by the
district's improvements and facilities acquired or constructed
under this Act.

SECTION 42.    LEGISLATIVE FINDING. Provides that the requirements
of Section 59, Article XVI, Texas Constitution, have been met and
accomplished in due course and time.

SECTION 43.    Emergency clause.
           Effective date: upon passage.