BILL ANALYSIS H.B. 3231 By: Harris, J. (Sponsor) Natural Resources 5-25-95 Senate Committee Report (Unamended) BACKGROUND Currently, Brazoria County Drainage District No. 4 is under the oversight of the Brazoria County Commissioners Court. PURPOSE As proposed, H.B. 3231 removes Brazoria County Drainage District No.4 from the oversight of the Brazoria County Commissioners Court and creates Brazoria Drainage District No. 4; provides the financing, administration, and general powers and duties of the district. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the board of commissioners of Brazoria Drainage District No. 4 under SECTIONS 4(d) and (e) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. NAME OF DISTRICT. Requires the Brazoria County Drainage District No. 4 to be known as the Brazoria Drainage District No. 4 (district) on and after the effective date of this Act. SECTION 2. DEFINITIONS. Defines "board" and "district." SECTION 3. SEAL. Requires the board of commissioners of the district (board) to adopt a seal for the district. SECTION 4. GENERAL POWERS AND DUTIES. (a) Provides that the district has all the powers of a conservation and reclamation district created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, and governed by Chapters 50 and 56, Water Code, and those powers for the drainage and reclamation of land in the district. (b) Authorizes the district to construct, complete, carry out, maintain, add to, or rebuild any work or improvement in or outside the district to accomplish the district's functions or to exercise its authority. Authorizes the district to enter any contract, employ any person, or take any action to accomplish a district purpose. (c) Requires the district to comply with Section 50.061, Water Code, in making a contract for improvement. (d) Authorizes the board to adopt and the district to enforce rules to facilitate the provision of district facilities or services including setting and collecting charges, fees, or rentals. Authorizes the district to discontinue a facility or service to prevent an abuse or to enforce payment of a charge, fee, or rental that is due and unpaid. (e) Authorizes the board, by rule, to require a deposit for a service to be provided by the district. Authorizes the rules to provide for payment of interest on a deposit. (f) Requires the district to maintain an office in accordance with Section 50.057, Water Code. (g) Requires the district to preserve district records and to keep its records and minutes in accordance with Sections 50.029 and 50.054, Water Code. (h) Authorizes the district to employ or retain necessary employees or professional consultants for the proper operation of the district including a general manger, attorneys, bookkeepers, or engineers. (i) Provides that the board is responsible for all district money and funds. Provides that it is not the duty of the Brazoria County judge to countersign a district warrant or check. Provides that it is not the duty of the Brazoria County treasurer or auditor to perform any district services. SECTION 5. ACQUISITION, LEASE, AND DISPOSAL OF PROPERTY. (a) Authorizes the district to acquire or lease property inside or outside of the district to accomplish a district purpose, including lands, materials, barren or waste grounds, water rights, easements, or rights-of-way. (b) Authorizes the district to acquire property by purchase, gift, or condemnation. (c) Authorizes the district to condemn fee simple title to or an easement on real property. Authorizes the district to condemn property only as provided by Chapter 21, Property Code, except that it is not required to give bond or make a deposit for appeal or costs in a condemnation suit. (d) Authorizes the district, by public sale, to dispose of property that the board finds is not necessary for the district to carry out a district function. SECTION 6. COSTS OF CERTAIN ALTERATIONS. Requires the district to pay the cost of acquiring the interest in property that requires the relocation, raising, rerouting, changing the grade of, or altering the construction of a highway, railroad, electric transmission line, telegraph or telephone property or facility, irrigation canal or lateral, or pipeline, so as to provide comparable replacement less the salvage value of the replaced facilities. SECTION 7. ELECTION AND TERMS OF COMMISSIONERS; VACANCY. (a) Provides that the district is managed by a three-member board of commissioners. Sets forth provisions for the election and terms of the commissioners. (b) Sets forth qualifications, in addition to those provided by Section 56.062, Water Code, for becoming a candidate. (c) Requires a candidate for nomination to a commissioner's office in a primary election to include with the candidate's application a $50 filing fee or a petition of voters meeting the requirements of a petition for a precinct office. Sets forth requirements for the application of an independent candidate for a commissioner's office. (d) Authorizes the executive committee of the party for the district to name a candidate to fill the vacancy in a certain manner if a vacancy occurs in the nomination of a political party for a commissioner's office. Sets forth the composition of the executive committee of a political party. (e) Authorizes a commissioner's office to be listed on a separate ballot provided with a regular ballot to the voters entitled to vote on the office at the discretion of the authority responsible for providing supplies for the primary or general election. Authorizes a separate paper ballot to be used for voting on a commissioner's office if the voting is conducted by voting machines or an electronic voting system. Requires the commissioners office to be listed after the precinct offices if it is listed on the same ballot. Prohibits a ballot including a commissioner's office from being provided to an ineligible voter. Requires the poll list to be kept in a manner indicating voters who are provided a ballot containing a commissioner's office. (f) Requires a vacancy in a commissioner's office or other board office to be filled by appointment by the remaining commissioners if less than 290 remain before the date of the next regular election of at least one commissioner. Requires the commissioners to call an election to fill the office before the 121st day after the vacancy occurs if they do not agree on an appointment before the 61st day after the vacancy occurs. (g) Requires the Brazoria County Commissioners Court to appoint one or two commissioners if the number of commissioners is less than two. Requires the commissioners court to fill the shortest unexpired term among the vacant offices. Requires the remaining vacancy to be filled by special election. (h) Requires the remaining commissioners to order a special election to fill a commissioner's office if a vacancy occurs in a commissioner's office and more than 290 days remain before the next regular election of one or more commissioners. Sets forth requirements of the special election. (i) Requires commissioners for Place No. 1 and Place No. 2 to be elected to serve a four-year term and a commissioner for Place No. 3 to be elected to serve a two-year term for the November 1996 election. SECTION 8. ORGANIZATION OF THE BOARD; QUORUM. (a) Requires the board to organize by electing one commissioner to be presiding officer and one as secretary. (b) Provides that the secretary serves as presiding officer in the absence of the elected presiding officer. (c) Provides that two commissioners constitutes a quorum. Provides that an affirmative vote of two commissioners is required for the board to act. SECTION 9. COMPENSATION AND PER DIEM OF COMMISSIONERS. (a) Requires the salary of a commissioner to be $25 per day. Requires a commissioner to receive a per diem of $7.50. (b) Provides that Section 56.067, Water Code, does not apply to the board. SECTION 10. PERFORMANCE BONDS. (a) Requires each officer, agent, or employee of the district charged with collection, custody, or payment of district funds to provide a bond conditioned on faithful performance of the duties of the officer, agent, or employee and on a true accounting of all funds and property of the district. Requires the bond to be in the amount set and approved by the board. (b) Requires the district to pay the premiums for all bonds required by an officer, agent, or employee of the district. SECTION 11. ISSUANCE OF BONDS; ORDER AND ELECTION. (a) Authorizes the district to issue bonds in various series or issues for any district purpose. Authorizes the board to use certain methods to provide for the payment of bonds. (b) Authorizes the district to mortgage or encumber any part of or the franchise, revenue, or income from a district property or facility to secure payment of a bond issue. (c) Authorizes district bonds payable solely from district revenues to be issued by order of the board. Prohibits the board from issuing a bond payable from ad valorem taxes unless the bond and tax are approved by the resident voters of the district at an election called by the board. Sets forth requirements for a notice of election. Authorizes the board to include all or part of the facilities or improvements to be acquired with the bond proceeds in a single proposition or in several propositions. Provides that this section does not apply to refunding bonds. (d) Sets forth the format for a ballot used in an election to authorize bonds payable wholly from ad valorem taxes. Sets forth the format for a ballot used in an election to authorize bonds payable partially from ad valorem taxes. Authorizes separate propositions for tax bonds and for combination revenue and tax bonds to be submitted at the same election. (e) Authorizes the board, in issuing bonds payable wholly or partially from district revenue, to provide in the order authorizing the bond issuance for later issues of additional parity bonds, subordinate lien bonds, or other bonds. Authorizes the additional bonds to be issued only under the terms provided in the order. SECTION 12. BOND PROCEEDS. (a) Authorizes bond proceeds to be used to pay for interest on certain bonds and certain expenses. (b) Authorizes the board to invest and reinvest district money held in certain funds established in a board order authorizing the issuance of bonds or securities. SECTION 13. LIMITATIONS ON TAX BONDS OUTSTANDING. Prohibits the total value of outstanding bonds payable from ad valorem taxes from exceeding seven percent of the assessed value of taxable property in the district, according to the most recent tax rolls. SECTION 14. SALE OR EXCHANGE OF BONDS. Requires the district to sell district bonds at the best price and on the best terms. Authorizes the district to exchange bonds for property acquired by purchase or payment of the contract price of work for the use or benefit of the district. SECTION 15. BOND APPROVAL. (a) Requires the district to submit all bonds authorized to be issued to the attorney general for examination. Requires the attorney general to approve the bonds and the comptroller to register the bonds if the attorney general finds that the bonds have been legally issued. Provides that the bonds, on approval and registration, are incontestable in court or any other forum and are valid and binding obligations. (b) Authorizes a copy of the contract or lease between the district and another party to be submitted to the attorney general along with the bond records if the bonds payable from district revenues are secured by a pledge of proceeds of the contract or lease. Provides that the contract or lease is incontestable in any court or other forum if the contract or lease and the bonds are approved by the attorney general. SECTION 16. REFUNDING BONDS. (a) Authorizes the board to issue refunding bonds to refund or refinance all or part of the district's outstanding bonds or matured and unpaid interest coupons. (b) Requires the refunding bonds to be payable from the same source as the bonds being refunded. (c) Provides that the district is not required to hold an election before issuing refunding bonds. SECTION 17. BONDS AS INVESTMENTS; PAID BONDS. (a) Provides that when accompanied by all unmatured interest coupons, a bond issued by the district is a legal and authorized investment for certain financial institutions, funds, and state agencies. (b) Requires district bonds and coupons, when paid, to be delivered to the board for cancellation and destruction. SECTION 18. TAX TO PAY BONDS. Authorizes the district, with voter approval, to levy and collect a tax to meet the requirements of the district's bonds. SECTION 19. MAINTENANCE TAX. (a) Authorizes a district to levy and collect a maintenance tax to pay for certain expenses. (b) Requires the district's maintenance tax to be approved by the voters. Requires the board to call and hold an election to authorize or increase the maintenance tax. Sets forth the language of the proposition. Requires the election to be held in a certain manner. (c) Authorizes the board to levy, assess, and collect an approved maintenance tax in the same manner as other taxes. (d) Authorizes a tax approved by election to be levied, assessed, and collected until the tax is disapproved at another election. Prohibits the district from holding an election to repeal or reduce the maintenance tax more than once in a five-year period. SECTION 20. TAX ASSESSOR AND COLLECTOR. (a) Requires the tax assessor and collector of Brazoria County to serve, ex officio, as the tax assessor and collector of the district. Provides that the tax assessor and collector has the same powers and is governed by the same rules and proceedings as provided for the collection of state and county taxes, except as provided by this Act. (b) Requires the blanks used by the assessor and collector to accept rendition of property for taxation by Brazoria County to show that the rendition of property in the district is also made for the benefit of the district. Requires the property in the district to clearly indicated on the tax rolls in the office of the assessor and collector. Provides that the property values in the district, as equalized by the board of equalization of Brazoria County, constitute the assessed value of the properties for district taxes. Requires the assessor and collector, before the 6th day after the Brazoria County Commissioners Court approves the report of the board of equalization, to certify to the board the total assessed value of the property in the district according to the approved tax rolls. (c) Requires taxes collected to be deposited in the districts depository after deductions. (d) Authorizes the assessor and collector to charge and deduct from the all taxes collected on the current year's tax roll an amount for services as specified by the board. SECTION 21. TAX LIEN. (a) Provides that taxes authorized by this Act constitute a lien on property assessed for taxes. (b) Requires the tax assessor and collector to make a certified list of all property on which taxes levied by the district are due but remain unpaid. Requires the assessor and collector to provide the list to the Brazoria County Commissioners Court. Requires the commissioners court to collect the taxes by the sale of the property in the manner provided for the sale of property for collection of state and county taxes. SECTION 22. (1) Repealer: Sections 4, 7, and 7A, Chapter 7, Acts of the 41st Legislature, 1st Called Session, 1929. (2) Repealer: Chapter 8, Acts of the 67th Legislature, 1st Called Session, 1981. SECTION 23. Severability clause. SECTION 24. Emergency clause. Effective date: upon passage.