1-1 By: Harris, et al. (Senate Sponsor - Brown) H.B. No. 3179 1-2 (In the Senate - Received from the House May 4, 1995; 1-3 May 5, 1995, read first time and referred to Committee on Natural 1-4 Resources; May 24, 1995, reported favorably by the following vote: 1-5 Yeas 8, Nays 0; May 24, 1995, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the creation, administration, powers, duties, 1-9 operation, and financing of the Clear Creek Watershed Regional 1-10 Flood Control District, granting the power of eminent domain, 1-11 authorizing the issuance of bonds, providing for the levy, 1-12 assessment, and collection of ad valorem taxes, and providing for a 1-13 civil penalty. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 SECTION 1. DEFINITIONS. In this Act: 1-16 (1) "Board" means the board of directors of the 1-17 district. 1-18 (2) "Commission" means the Texas Natural Resource 1-19 Conservation Commission. 1-20 (3) "Commissioners courts" means the commissioners 1-21 courts of Brazoria, Fort Bend, Galveston, and Harris counties. 1-22 (4) "Director" means a member of the board. 1-23 (5) "District" means the Clear Creek Watershed 1-24 Regional Flood Control District. 1-25 (6) "Person" has the meaning assigned by Section 1-26 311.005, Government Code. 1-27 SECTION 2. CREATION OF DISTRICT. The Clear Creek Watershed 1-28 Regional Flood Control District is created as a conservation and 1-29 reclamation district under Section 59, Article XVI, Texas 1-30 Constitution, subject to approval at a confirmation election under 1-31 Section 5 of this Act. The district is a governmental agency and 1-32 body politic and corporate. 1-33 SECTION 3. BOUNDARIES OF DISTRICT. The district is composed 1-34 of Brazoria County tracts 0601.10, 0601.20, 0602.12, 0602.22, and 1-35 0602.32; and that part of Brazoria County tract 0602.11 included in 1-36 block group 1 and blocks 201A, 201B, 202A, 202B, 202C, 206B, 301A, 1-37 and 301B; and that part of Brazoria County tract 0602.21 included 1-38 in blocks 101, 102, 103, 104, 105, 106, 107, 108, 109A, 109B, 110, 1-39 111, 112A, 112B, 113A, 113B, 114, 115, 116, 117, 118, 119, 120, 1-40 121, 301A, 301B, 302A, 302B, 303B, 304, 305A, 305B, 306A, 306B, 1-41 307A, 307B, 308, 309, 310A, 310B, and 311; and that part of 1-42 Brazoria County tract 0603.10 included in blocks 101A, 101B, 102, 1-43 103, 104, 105, 106, 107, 108, 109, 308A, 308B, 308C, 312, 317, 1-44 318A, 318B, 319, 320, 321, 322, 326A, and 327; and that part of 1-45 Fort Bend County tract 0701.15 included in blocks 607A, 607B, 608, 1-46 609, 610, 611, 612, 613, 614, 615, 616A, and 616B; and that part of 1-47 Fort Bend County tract 0701.25 included in blocks 101, 102, 103A, 1-48 103C, 104, 105, 122, 123, 201, 202, 203, 204, and 205; Galveston 1-49 County tracts 1201.01, 1201.02, 1205, 1206.10, and 1206.20; and 1-50 that part of Galveston County tract 1202 included in block groups 1-51 1, 2, 5, and blocks 301, 302, 303, 304, 305, 306, 307, 308, 309, 1-52 310, 311, 312A, 312B, 313, 314, 315, 316A, 316B, 316C, 317, 319, 1-53 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 1-54 414, and 415; and that part of Galveston County tract 1203 included 1-55 in block groups 1, 2, 3, 4, 5, and blocks 601, and 602; and that 1-56 part of Galveston County tract 1204 included in block groups 1 and 1-57 2 and blocks 304, 305, 306, and 307; and that part of Galveston 1-58 County tract 1207 included in block groups 1, 3, 4, 5, and blocks 1-59 201A, 201B, 201E, 202, 203, 204A, 204B, 205, 206, 207, 208, 209, 1-60 210, and 211; and that part of Galveston County tract 1208 included 1-61 in block 407A; and that part of Galveston County tract 1209 1-62 included in blocks 101, 102, 103, 104, 105, 106, 107, 112, 113, 1-63 114, 115, 116, 117, 118, 123, 124, 125, 126, 130, and 131; Harris 1-64 County tracts 0337, 0341, 0345.02, 0371.02, 0371.11, 0371.21, 0372, 1-65 0373.04, 0374, and 0375; and that part of Harris County tract 0336 1-66 included in blocks 403B, 408, 409, 410, 411, and 412; and that part 1-67 of Harris County tract 0338 included in blocks 401 and 413; and 1-68 that part of Harris County tract 0340 included in blocks 604, 605, 2-1 606, 607, 608, and 609; and that part of Harris County tract 0342 2-2 included in blocks 113, 126, 128, 129, 130, 131, 132, and 133; and 2-3 that part of Harris County tract 0344 included in block 426; and 2-4 that part of Harris County tract 0345.01 included in block groups 2-5 4, 5, 6, and blocks 303, 304, 305, 306, 307, 308, 309, 310, 311, 2-6 312, 313, 314, 315, 316, 317, 318, 319, and 320; and that part of 2-7 Harris County tract 0346 included in blocks 204, 209, 210, 212, and 2-8 304; and that part of Harris County tract 0347.03 included in block 2-9 202; and that part of Harris County tract 0367 included in blocks 2-10 131B, 132, and 133; and that part of Harris County tract 0368.01 2-11 included in block groups 5, 6, 7, 8, and blocks 402A, 402B, 402C, 2-12 402D, 402E, 403, 404, 499A, 499B, 499C, 499D, and 499E; and that 2-13 part of Harris County tract 0368.02 included in blocks 109, 110, 2-14 111, 112, 113, 115, 202, 203, 204, 205, 206, 207, 208, 209, 210, 2-15 211, 212, 213, 305, 308, 309, 312, 315, 316, 319, 320, 323, 324, 2-16 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 336, 337, 2-17 338, 339, 340, 341, 342, 343, 344, 345, 346, 347, 348, 349, 350, 2-18 351, 352, 353, 354, 355, 358, 359, 364, 365, and 399; and that part 2-19 of Harris County tract 0369 included in blocks 101B, 101C, 101D, 2-20 101E, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 2-21 199A, 199B, 199C, 201, 202, 203, 204, 205, 206, 207A, 207C, 208, 2-22 209, 212, 299, 301B, and 301D; and that part of Harris County tract 2-23 0370.10 included in block groups 1 and 2 and blocks 301A, 301B, and 2-24 303; and that part of Harris County tract 0373.02 included in block 2-25 group 6 and blocks 305, 308, 309, 702, 703, 704, and 705; and that 2-26 part of Harris County tract 0373.03 included in block groups 1, 2, 2-27 3, and blocks 401A, 401B, 403, 409, 410, 411, 412, 413, 414, 415, 2-28 416, 417, 418, 419, 420, 421, 422, 423, 505, 506, 507, 508, 509, 2-29 510, 511, and 512; and that part of Harris County tract 0373.11 2-30 included in blocks 101A, 101B, 102, 103, 104, 301A, 301B, 302, 2-31 303A, and 303B; and that part of Harris County tract 0373.21 2-32 included in block groups 2 and 3 and blocks 111, and 112. 2-33 SECTION 4. BOARD OF DIRECTORS. (a) The district is 2-34 governed by a board of five directors appointed as provided by this 2-35 section. 2-36 (b) On or before the 90th day after the effective date of 2-37 this Act: 2-38 (1) the commissioners courts of Brazoria and Harris 2-39 counties each shall appoint one director to serve a term that 2-40 expires September 30, 1997; and 2-41 (2) the commissioners courts of Fort Bend, Galveston, 2-42 and Harris counties each shall appoint one director to serve a term 2-43 that expires September 30, 1999. 2-44 (c) On expiration of a director's term, the commissioners 2-45 court that appointed the director shall appoint a successor to 2-46 serve a four-year term that expires on September 30 of the fourth 2-47 year after the expiration of the previous director's term. 2-48 (d) On vacancy of a director's office during the director's 2-49 term, the commissioners court that appointed the director shall 2-50 appoint a person to serve as director for the remainder of the 2-51 term. 2-52 (e) A commissioners court may not appoint a person as a 2-53 director unless at the time of appointment the person holds an 2-54 elective office of a political subdivision in the district other 2-55 than the office of county commissioner. A person may be 2-56 reappointed for multiple terms as a director if the person holds, 2-57 at the time of each appointment, an elective office as required for 2-58 initial appointment. 2-59 (f) A director must qualify by taking the official oath of 2-60 office required of state officers. 2-61 (g) A director holds office until a successor is appointed 2-62 and qualifies for office. 2-63 (h) A director is not entitled to receive compensation for 2-64 service on the board, but may be reimbursed for actual travel 2-65 expenses. 2-66 (i) As soon as practicable after appointment, the initial 2-67 board shall hold a regular meeting and elect officers. 2-68 (j) The board shall elect from its members a chair, vice 2-69 chair, and secretary. A director elected to a board office serves 2-70 in that position for one year. The chair, or if the chair is 3-1 absent, the vice chair, shall preside over meetings of the board. 3-2 The chair, vice chair, and secretary shall perform the duties and 3-3 may exercise the powers specifically given them by this Act or by 3-4 resolution or order of the board. 3-5 (k) Three directors constitute a quorum for the transaction 3-6 of district business. An action of the board is valid only with 3-7 the affirmative vote of three directors. 3-8 (l) The board may adopt bylaws consistent with this Act. 3-9 The bylaws may be amended as necessary for the management and 3-10 operation of the district. The board shall hold regular and 3-11 special meetings at times and dates determined by the board. The 3-12 board shall maintain complete and accurate records of the 3-13 district's accounts, contracts, plans, notices, receipts, and 3-14 meetings and other proceedings in a secure manner at the district's 3-15 principal office. The records must be open to public inspection at 3-16 reasonable times. 3-17 (m) An advisory committee to the board composed of one 3-18 representative from each political subdivision within the district 3-19 shall be established. Members of the advisory committee shall be 3-20 appointed by each political subdivision from elected members of the 3-21 subdivision's governing body. 3-22 SECTION 5. CONFIRMATION ELECTION. (a) The district may not 3-23 exercise a power granted by this Act other than a power granted by 3-24 this section until the creation of the district is confirmed by a 3-25 majority of the resident electors of the district voting at a 3-26 confirmation election called under this section. The initial board 3-27 shall call a confirmation election to be held not later than two 3-28 years after the effective date of this Act within the boundaries of 3-29 the proposed district. The board may call subsequent confirmation 3-30 elections if the district is not confirmed at the first election. 3-31 Expenses of a confirmation election shall be paid in equal shares 3-32 by each of the commissioners courts and shall be repaid by the 3-33 district if creation of the district is confirmed. Section 3-34 41.001(a), Election Code, does not apply to a confirmation 3-35 election. 3-36 (b) The board must give notice of a confirmation election. 3-37 The notice must state the date and polling places for the election 3-38 and the proposition to be voted on. The board must publish the 3-39 notice once in a newspaper or newspapers of general circulation in 3-40 the proposed district. The notice must be published at least 35 3-41 days before the date set for the election. 3-42 (c) The ballot for a confirmation election must be printed 3-43 to provide for voting for or against the proposition: "The 3-44 creation of the Clear Creek Watershed Regional Flood Control 3-45 District." 3-46 (d) Immediately after a confirmation election, the presiding 3-47 judge of each polling place shall return the results of the 3-48 election to the board. The board shall canvass the returns. 3-49 (e) If a majority of the votes cast at a confirmation 3-50 election favor the creation of the district, the board shall 3-51 declare the district confirmed and enter the results in its 3-52 minutes. If a majority of the votes cast at a confirmation 3-53 election are against the creation of the district, the board shall 3-54 declare that the district was defeated and shall enter the results 3-55 in its minutes. The board shall also file a copy of the election 3-56 results with the commission. 3-57 (f) If a majority of the voters at a confirmation election 3-58 vote against the creation of the district, another election to 3-59 confirm creation of the district may not be called and held for at 3-60 least 12 months following the most recent confirmation election. 3-61 If the district is not confirmed before the fifth anniversary of 3-62 the effective date of this Act, this Act expires. 3-63 SECTION 6. PERSONNEL. (a) The board may employ a general 3-64 manager as the chief administrative officer of the district. The 3-65 board may delegate to the general manager full authority to manage 3-66 and operate the affairs of the district, subject only to orders of 3-67 the board. The general manager shall execute a bond in an amount 3-68 determined by the board, payable to the district, conditioned on 3-69 the faithful performance of the general manager's duties. The 3-70 district shall pay for the bond. 4-1 (b) The board shall appoint a professional civil engineer 4-2 for the district, who shall be entitled to the compensation 4-3 provided in the district's budget. The district engineer shall 4-4 execute a bond in an amount determined by the board, payable to the 4-5 district, conditioned on the faithful performance of the district 4-6 engineer's duties. The district shall pay for the bond. 4-7 (c) The board may authorize the employment of other persons 4-8 necessary for the proper management of the business and operation 4-9 of the district, and may employ or contract with expert and 4-10 specialized personnel necessary to implement this Act. The board 4-11 shall determine the terms of employment or contracts and the 4-12 compensation to be paid to employees or persons under contract 4-13 under this section. The board shall require each employee or 4-14 person under contract who collects, pays, or handles district money 4-15 to furnish a bond, payable to the district, in an amount sufficient 4-16 to protect the district from financial loss resulting from actions 4-17 of the employee or person under contract. Each bond shall be 4-18 conditioned on the faithful performance of the duties of the 4-19 employee or person under contract and on accounting for all money 4-20 and property of the district that the employee or person under 4-21 contract handles. The district shall pay for each bond. 4-22 SECTION 7. DISTRICT OFFICE. The board shall designate the 4-23 location of the principal office of the district at any place in 4-24 the district. 4-25 SECTION 8. GENERAL POWERS AND DUTIES. (a) The district 4-26 shall develop a flood control and drainage plan under the 4-27 provisions of this Act for all land in the district, including the 4-28 main channel and all tributaries of Clear Creek. 4-29 (b) In accordance with the flood control and drainage plan, 4-30 the district shall: 4-31 (1) construct improvements on the main channel of 4-32 Clear Creek that will lessen and control flooding; 4-33 (2) prevent or remove deposits of silt and remove 4-34 natural or artificial obstructions from the main channel of Clear 4-35 Creek; 4-36 (3) conduct flood-control-related maintenance on the 4-37 main channel of Clear Creek; and 4-38 (4) approve and coordinate all flood control 4-39 improvements and infrastructure alterations within the boundaries 4-40 of the district. 4-41 (c) Under a written agreement with a political subdivision 4-42 and in accordance with the flood control and drainage plan, the 4-43 district may construct in whole or in part improvements on any 4-44 watercourse or land in the district to: 4-45 (1) lessen and control flooding; 4-46 (2) prevent or remove deposits of silt and remove 4-47 natural or artificial obstructions from any watercourse; or 4-48 (3) conduct flood-control-related maintenance on any 4-49 watercourse. 4-50 (d) The district may issue bonds under this Act supported by 4-51 ad valorem taxes on property in the district to finance up to 4-52 one-half the cost of construction under Subsection (c) if the 4-53 district finds that the project will not be constructed without the 4-54 use of the ad valorem taxes. 4-55 (e) The district may issue bonds supported by revenues from 4-56 contracts with political subdivisions under Section 39 to finance 4-57 all or part of the cost of construction under this section. 4-58 (f) The district may: 4-59 (1) apply for, accept, receive, and administer gifts, 4-60 grants, and other funds available from any source; 4-61 (2) advise, consult, and cooperate with the federal 4-62 government and its agencies, the state and its agencies, and 4-63 private entities; 4-64 (3) acquire land, rights and interests in land, and 4-65 any other property needed to carry on the work of flood control by 4-66 gift, devise, purchase, or condemnation; 4-67 (4) sell, trade, or otherwise dispose of land, 4-68 property, or rights in land or property when no longer needed for 4-69 flood control purposes; 4-70 (5) authorize its officers, employees, or agents to go 5-1 on any land in the district for the purpose of surveying and 5-2 examining the land for flood control plans and projects, and for 5-3 any other purpose within the scope of the district's authority; 5-4 (6) enter into a contract executed in the name of the 5-5 district with anyone as provided by this Act; 5-6 (7) after providing notice and hearing in accordance 5-7 with procedures adopted by the board, adopt rules to implement this 5-8 Act; 5-9 (8) sue and be sued in any court of this state in the 5-10 name of the district, with service of process had by serving the 5-11 chair of the board; 5-12 (9) adopt a seal for the district; 5-13 (10) levy and collect impact fees under Section 5-14 395.080(b), Local Government Code; and 5-15 (11) do all other acts necessary to implement this 5-16 Act. 5-17 (g) The district shall advise, consult, and cooperate with 5-18 local governments on matters regarding the watershed. 5-19 SECTION 9. FLOOD CONTROL AND DRAINAGE PLAN. (a) The board 5-20 shall direct the district engineer to prepare a flood control and 5-21 drainage plan that provides for: 5-22 (1) control and abatement of flood water and other 5-23 excess water; and 5-24 (2) reclamation and proper drainage of land in the 5-25 district. 5-26 (b) The district engineer shall file the completed plan with 5-27 the board and the commissioners courts. 5-28 (c) In preparing the plan, the district engineer may 5-29 exercise the powers and shall exercise the duties provided by 5-30 Sections 56.022 and 56.023, Water Code. 5-31 (d) In preparing the plan, the district engineer may 5-32 consider and use all or part of any previously prepared flood 5-33 control and drainage plan that covers any area in the district, 5-34 including the Clear Creek Regional Watershed Plan as adopted by the 5-35 Clear Creek Watershed Steering Committee. 5-36 SECTION 10. NOTICE AND HEARING ON FLOOD CONTROL AND DRAINAGE 5-37 PLAN. (a) On receipt of the completed flood control and drainage 5-38 plan, the board shall schedule a public hearing to consider 5-39 adoption of the plan. The board must publish notice of the hearing 5-40 at least once in a newspaper with general circulation in the 5-41 district not less than 30 days before the date set for the hearing. 5-42 (b) At the hearing, any person who resides or owns property 5-43 in the district or a political subdivision located in whole or in 5-44 part in the district may appear before the board and present 5-45 evidence or testify for or against all or part of the plan. 5-46 SECTION 11. ADOPTION OF FLOOD CONTROL AND DRAINAGE PLAN. 5-47 (a) After holding the public hearing required by Section 10, the 5-48 board shall issue its findings and decision. 5-49 (b) If the board finds that the flood control and drainage 5-50 plan requires changes before it can be adopted, the board shall 5-51 direct the district engineer to make the necessary changes. The 5-52 district engineer shall make the changes and resubmit the plan to 5-53 the board. 5-54 (c) Without further public hearing, the board may continue 5-55 to direct the district engineer to make changes to the plan until 5-56 the board finds the plan acceptable for adoption. 5-57 (d) If the board finds that no changes are required in the 5-58 plan, or if the district engineer has made all necessary changes to 5-59 the plan under Subsections (b) and (c), the board shall submit the 5-60 plan to the commissioners courts. The commissioners courts may 5-61 consider the plan and recommend changes to the plan. If the board 5-62 and commissioners courts cannot agree on changes to the plan, the 5-63 board shall submit the provisions in the plan that are in dispute 5-64 to the district engineer for resolution of the dispute. The 5-65 decision of the district engineer is final. Not earlier than the 5-66 30th day after the plan is submitted to the commissioners courts, 5-67 the board shall adopt the plan as revised to reflect all necessary 5-68 changes. 5-69 SECTION 12. AMENDMENT OF FLOOD CONTROL AND DRAINAGE PLAN. 5-70 After complying with the provisions of Sections 10 and 11, the 6-1 board may amend the flood control and drainage plan as necessary to 6-2 accomplish the purpose stated in Section 9. 6-3 SECTION 13. IMPROVEMENTS TO BE CONSTRUCTED. (a) Only 6-4 improvements compatible with the flood control and drainage plan 6-5 and adopted by the board may be constructed. 6-6 (b) Improvements and maintenance on the main channel of 6-7 Clear Creek shall be constructed and performed only by the 6-8 district. The district may cause improvements and maintenance to 6-9 the main channel of Clear Creek to be constructed and performed 6-10 through contracts with other persons and political subdivisions, 6-11 but the district retains responsibility for assuring that all 6-12 construction and maintenance is done in conformance with the plan. 6-13 (c) All improvements and maintenance on lands draining into 6-14 Clear Creek or its tributaries, including detention structures, and 6-15 improvements and maintenance to channels other than the main 6-16 channel of Clear Creek may be constructed or performed by other 6-17 political subdivisions or persons in conformance with the plan. 6-18 The district may construct, in whole or part, improvements and 6-19 perform maintenance under this subsection only under agreements 6-20 with other political subdivisions. 6-21 SECTION 14. LOCAL COOPERATION. The district shall cooperate 6-22 with other political subdivisions as much as possible to provide 6-23 uniform programs and coordinated planning. 6-24 SECTION 15. DISTRICT SUPERIOR IN FLOOD CONTROL AND DRAINAGE 6-25 MATTERS. The district has primary jurisdiction within its 6-26 boundaries over all matters affecting flood control and drainage of 6-27 land and may take any action necessary to assure compliance with 6-28 the flood control and drainage plan. 6-29 SECTION 16. CERTIFICATE REQUIRED FOR ACTIVITY AFFECTING 6-30 FLOOD CONTROL OR DRAINAGE. Except as provided by Section 17, a 6-31 person or political subdivision may not engage in an activity that 6-32 will affect flood control or drainage in the district without 6-33 obtaining a certificate from the board. 6-34 SECTION 17. EXEMPTIONS. After notice and hearing, the board 6-35 may adopt a rule or issue an order that exempts a specified 6-36 activity from Section 16. If a political subdivision has its plan 6-37 approved by the board, any improvements within the subdivision 6-38 which are consistent with the approved plan are exempt from 6-39 certification by the board. The board may exempt an activity only 6-40 if the board, after consultation with the district engineer, finds 6-41 that the activity will have at most a minimal impact on flood 6-42 control and drainage. 6-43 SECTION 18. NOTICE OF ACTIVITIES AFFECTING FLOOD CONTROL OR 6-44 DRAINAGE. (a) A person or political subdivision that plans to 6-45 engage in an activity that will affect flood control or drainage in 6-46 the district shall submit written notice to the board of the intent 6-47 to engage in the activity, accompanied by plans, specifications, 6-48 and other information relating to the activity. 6-49 (b) A person or political subdivision shall submit the 6-50 notice and other information required by Subsection (a) in the form 6-51 and manner and within the time provided by board rules. 6-52 SECTION 19. CONSIDERATION OF ACTIVITY BY ENGINEER. (a) On 6-53 receiving notice of a proposed activity under Section 18, the board 6-54 shall submit the notice and other information to the district 6-55 engineer for consideration. 6-56 (b) The district engineer shall examine the notice and other 6-57 information to determine: 6-58 (1) the effect of the proposed activity on flood 6-59 control and drainage in the district; and 6-60 (2) whether the proposed activity is compatible with 6-61 the flood control and drainage plan. 6-62 (c) The district engineer shall consult with the person or 6-63 political subdivision submitting the notice and information and 6-64 suggest changes in the proposed plans and specifications for the 6-65 activity necessary to make the activity compatible with the flood 6-66 control and drainage plan. 6-67 (d) If the district engineer and the person or political 6-68 subdivision proposing an activity agree to plans and specifications 6-69 for the activity that are compatible with the flood control and 6-70 drainage plan as determined by the district engineer, the district 7-1 engineer shall recommend that the board issue a certificate 7-2 authorizing the activity. If the district engineer and the person 7-3 or political subdivision proposing an activity cannot agree, the 7-4 district engineer shall recommend that the board decline to issue a 7-5 certificate authorizing the activity. The district engineer's 7-6 recommendation shall be included in a brief written report to the 7-7 board stating the district engineer's reasons for the 7-8 recommendation. 7-9 SECTION 20. BOARD CONSIDERATION AND ACTION. (a) On 7-10 receiving the district engineer's report, the board may issue a 7-11 certificate without giving notice or holding a public hearing to 7-12 consider the issuance. 7-13 (b) On consideration of the district engineer's report, if 7-14 the board intends to deny issuance of a certificate, the board 7-15 shall first give notice and hold a public hearing in accordance 7-16 with the district's rules to consider the issuance of the 7-17 certificate. After conducting the hearing, the board shall issue a 7-18 written decision granting or denying the certificate or granting 7-19 the certificate subject to specific requirements. The decision 7-20 shall state the findings of the board in making the decision. 7-21 SECTION 21. OBSTRUCTIONS AND STRUCTURES. (a) A person or 7-22 political subdivision may not place an obstruction or construct or 7-23 alter a structure on land in the district if the obstruction or 7-24 structure is not compatible with the flood control and drainage 7-25 plan and the district has not issued a certificate for the 7-26 activity. 7-27 (b) After notice and hearing, the board may issue an order 7-28 directing a person or political subdivision to remove or make 7-29 changes to an obstruction or structure constructed after adoption 7-30 of the flood control and drainage plan as necessary to comply with 7-31 the plan. 7-32 SECTION 22. INJUNCTIVE RELIEF. If a person or political 7-33 subdivision engages in an activity that will affect flood control 7-34 or drainage in the district without a certificate or places an 7-35 obstruction or constructs or alters a structure in violation of an 7-36 order issued by the board under Section 21, the board may sue in a 7-37 district court in any county in which the activity is occurring or 7-38 obstruction is built for injunctive relief to restrain the person 7-39 or political subdivision from continuing or threatening to continue 7-40 the violation or to require the person or political subdivision to 7-41 remove an obstruction or structure. 7-42 SECTION 23. CIVIL PENALTY. (a) A person or political 7-43 subdivision that violates Section 16 or 21 or any order issued by 7-44 the board under Section 16 or 21 is subject to a civil penalty of 7-45 not less than $100 nor more than $1,000 for each violation or each 7-46 day of a continuing violation. 7-47 (b) If a suit is filed under this section to recover a civil 7-48 penalty, the court may include in any final judgment in favor of 7-49 the district an award to cover court costs and reasonable 7-50 attorney's fees. 7-51 SECTION 24. EMINENT DOMAIN. (a) The district may acquire 7-52 land for district improvements by condemnation when the board 7-53 determines, after notice and hearing, that condemnation is 7-54 necessary. 7-55 (b) The district shall exercise the power of eminent domain 7-56 as provided by Chapter 21, Property Code, but the district is not 7-57 required in an appeal to post a bond or make a deposit. 7-58 (c) If the district, in the exercise of the power of eminent 7-59 domain, makes necessary the relocation, raising, lowering, 7-60 rerouting, or changing in grade, or alteration of the construction 7-61 of any highway, railroad, electric transmission line, telephone or 7-62 telegraph property or facility, or pipeline, the district shall pay 7-63 the cost of the necessary action so as to provide comparable 7-64 replacement of any replaced facility, less the replaced facility's 7-65 net salvage value. 7-66 SECTION 25. CONSTRUCTION CONTRACTS. (a) Construction 7-67 contracts of the district shall be competitively bid in accordance 7-68 with Subchapter B, Chapter 271, Local Government Code. 7-69 (b) The district shall comply with Sections 66.208-66.213, 7-70 Water Code. 8-1 SECTION 26. USE OF DISTRICT MONEY. (a) The board may use 8-2 district money for construction costs, acquisition of property, 8-3 maintenance of and improvements to flood control and drainage 8-4 systems of the district, payment of debt service requirements, and 8-5 establishment of appropriate reserves. 8-6 (b) The district's money may be disbursed only by check, 8-7 draft, order, or other written instrument that is signed by a 8-8 person or persons authorized by the board. 8-9 SECTION 27. INVESTMENTS. The board shall invest district 8-10 money in accordance with the Public Funds Investment Act (Section 8-11 2256.001 et seq., Government Code). The board may allow an 8-12 authorized district representative to invest and reinvest the 8-13 district's money and withdraw money from appropriate district 8-14 accounts for investments on terms the board considers advisable. 8-15 SECTION 28. BUDGET. (a) The board annually shall prepare a 8-16 budget covering all proposed expenditures for the succeeding year. 8-17 The budget must contain a complete financial statement of the 8-18 district. 8-19 (b) The board shall conduct a public hearing on the proposed 8-20 budget on a date set by the board after August 15 and before the 8-21 levy of district taxes. The board shall give public notice of the 8-22 hearing by publication in a newspaper of general circulation in the 8-23 district at least 15 days before the hearing. 8-24 SECTION 29. ISSUANCE OF BONDS. (a) The district may: 8-25 (1) issue bonds secured by district revenues or ad 8-26 valorem taxes to accomplish the purposes of this Act; 8-27 (2) provide for the payment of interest on district 8-28 bonds as it accrues; and 8-29 (3) provide for a sinking fund for the payment of the 8-30 principal of district bonds. 8-31 (b) The district may issue bonds in various series or 8-32 issues. The bonds may mature serially or otherwise but may not 8-33 mature more than 40 years from their date or dates of issuance. 8-34 (c) The district's bonds and interest coupons, if any, are 8-35 investment securities under the terms of Chapter 8, Business & 8-36 Commerce Code, and may be registered as to principal or principal 8-37 and interest or may be issued in book entry form. The district's 8-38 bonds may be made redeemable before maturity at the option of the 8-39 district or may contain a mandatory redemption provision. The 8-40 district's bonds may be issued in the form, denomination, and 8-41 manner provided by the board in the resolution or order authorizing 8-42 issuance of the bonds. The district may provide for the flow of 8-43 funds, the establishment and maintenance of an interest, sinking, 8-44 reserve, or other fund, and may make covenants with respect to the 8-45 bonds and the ad valorem taxes or revenues pledged to secure the 8-46 bonds. 8-47 (d) The district may prohibit the further issuance of bonds 8-48 or other obligations payable from any pledged ad valorem taxes or 8-49 revenues or may reserve the right to issue additional bonds secured 8-50 by a pledge of ad valorem taxes or revenues on a parity with or 8-51 subordinate to the pledge securing bonds issued earlier. 8-52 (e) The orders or resolutions of the board issuing bonds may 8-53 contain other provisions and covenants as the board may determine. 8-54 The board may adopt and have executed any other proceedings or 8-55 instruments necessary in connection with the issuance of bonds. 8-56 (f) The district's bonds are subject to Article 717k-6, 8-57 Revised Statutes, except as provided by this Act. 8-58 SECTION 30. BOND ELECTION. (a) The district may not issue 8-59 bonds secured by ad valorem taxes, other than refunding bonds, 8-60 until the bonds have been authorized by a majority vote of the 8-61 voters qualified to vote and actually voting in the district at an 8-62 election called and held for that purpose. 8-63 (b) The board order calling a bond election under this 8-64 section must state the nature and date of the election, the hours 8-65 during which the polls will be open, the location of the polling 8-66 places, the amount of bonds to be authorized, and the maximum 8-67 maturity of the bonds. Notice of a bond election must be given as 8-68 provided by Section 5. The election shall be held in accordance 8-69 with the Election Code, except as provided by this Act. A bond 8-70 election may be called in conjunction with a confirmation election 9-1 under Section 5. At a bond election, the ballots must provide for 9-2 voting for or against the issuance of bonds and the levy of ad 9-3 valorem taxes to secure payment of the bonds. The board shall 9-4 canvass the returns and declare the results of the election. If a 9-5 majority of the qualified voters voting at the election vote in 9-6 favor of the issuance of bonds and the levy of taxes, the board may 9-7 issue, sell, and deliver the authorized bonds, receive and use the 9-8 bond proceeds for their intended purposes, and levy, assess, and 9-9 collect ad valorem taxes on all taxable property in the district in 9-10 an amount sufficient to pay interest on and principal of the bonds. 9-11 SECTION 31. REFUNDING BONDS. The district may issue 9-12 refunding bonds for the purpose and in the manner provided by 9-13 general law, including Articles 717k and 717k-3, Revised Statutes, 9-14 as those laws may be amended from time to time. 9-15 SECTION 32. APPROVAL AND REGISTRATION OF BONDS. The board 9-16 shall submit all bonds issued by the district to the attorney 9-17 general for examination. If the attorney general finds that the 9-18 bonds have been authorized in accordance with law, the attorney 9-19 general shall approve the bonds, and the comptroller of public 9-20 accounts shall register the bonds. After approval and registration 9-21 the bonds are incontestable in any court or other forum for any 9-22 reason and are valid and binding obligations in accordance with 9-23 their terms for all purposes. 9-24 SECTION 33. USE OF BOND PROCEEDS. From the proceeds of the 9-25 sale of bonds, the board may set aside an amount for the payment of 9-26 interest expected to accrue during a period of construction of 9-27 improvements or facilities not to exceed three years, and an amount 9-28 necessary to pay all expenses incurred and to be incurred in the 9-29 issuance, sale, and delivery of the bonds. Proceeds from the 9-30 initial sale of the district's bonds may be used to pay expenses 9-31 related to the district's confirmation. 9-32 SECTION 34. BONDS AUTHORIZED INVESTMENTS. (a) Bonds issued 9-33 by the district are legal and authorized investments for all banks, 9-34 savings banks, trust companies, building and loan associations, 9-35 savings and loan associations, insurance companies, fiduciaries, 9-36 trustees, guardians, interest and sinking funds and other public 9-37 funds of the state, agencies, subdivisions, and instrumentalities 9-38 of the state, including counties, municipalities, villages, school 9-39 districts, and all other kinds and types of districts, public 9-40 agencies and bodies politic including the state permanent school 9-41 fund. 9-42 (b) District bonds are eligible and lawful security for all 9-43 deposits of public funds of the state, and all agencies, 9-44 subdivisions, and instrumentalities of the state, including 9-45 counties, municipalities, villages, school districts, and all other 9-46 kinds and types of districts, public agencies, and bodies politic 9-47 to the extent of the market value of the bonds, when accompanied by 9-48 any unmatured interest coupons appurtenant to the bonds. 9-49 SECTION 35. REMEDIES. The owner of a bond issued by the 9-50 district may, in addition to any other remedy provided by law, 9-51 obtain a writ of mandamus requiring the district to perform its 9-52 obligations under the bond if the district: 9-53 (1) defaults in the payment of principal, interest, or 9-54 redemption price when due; 9-55 (2) fails to make required payments into a fund 9-56 related to the bond; or 9-57 (3) fails to perform any other obligation under the 9-58 bond. 9-59 SECTION 36. TAX-FREE STATUS. Bonds issued by the district, 9-60 any transaction relating to the district's bonds, and profits made 9-61 in the sale of district bonds are free from taxation by the state 9-62 or a political subdivision of the state. 9-63 SECTION 37. MAINTENANCE TAX. (a) The district may levy, 9-64 assess, and collect an annual ad valorem tax on all taxable 9-65 property in the district for the maintenance, operation, upkeep, 9-66 and improvement of the district and its facilities, properties, and 9-67 improvements. 9-68 (b) An ad valorem maintenance tax under Subsection (a) must 9-69 be authorized by a majority vote of the voters qualified to vote 9-70 and voting in the district at an election called and held for that 10-1 purpose. 10-2 (c) In addition to the requirements of the Election Code, 10-3 the ballot for the election must provide for voting "For the 10-4 maintenance tax" or "Against the maintenance tax". 10-5 (d) Subsequent elections may be called to increase, reduce, 10-6 or abate a maintenance tax. 10-7 (e) Notice of the election and the manner of holding the 10-8 election shall be as provided in Section 5. 10-9 (f) Maintenance taxes and bonds may be authorized at the 10-10 same election, including an election held in conjunction with a 10-11 district confirmation election under Section 5. 10-12 (g) An election authorizing a maintenance tax shall be held 10-13 in accordance with the Election Code, except as provided in this 10-14 Act. 10-15 SECTION 38. IMPOSITION OF TAXES. (a) The district may 10-16 annually levy ad valorem taxes approved in elections under Sections 10-17 30 and 37 to pay the principal of and interest on district bonds, 10-18 the expense of assessing and collecting taxes, and the expense of 10-19 operating and maintaining the district and its facilities. The 10-20 board may levy taxes for the entire year in the year in which the 10-21 district is confirmed. 10-22 (b) The district shall levy taxes on all property in the 10-23 district subject to taxation. In setting the tax rate, the board 10-24 shall take into consideration the income of the district from 10-25 sources other than taxation. On determination of the amount of tax 10-26 required to be levied, the board shall make the levy and certify it 10-27 to the tax assessor-collector. 10-28 (c) The Tax Code governs the appraisal, assessment, and 10-29 collection of district taxes. The board may provide for the 10-30 appointment of a tax assessor-collector for the district or may 10-31 contract for the assessment and collection of taxes as provided by 10-32 the Tax Code. 10-33 SECTION 39. JOINT PROJECTS. (a) The district may issue 10-34 bonds secured by revenues arising from a contract with a political 10-35 subdivision located wholly or partially in the district for the 10-36 construction of an improvement identified in the flood control and 10-37 drainage plan. The district shall provide the proceeds from the 10-38 bonds to the local political subdivision for the construction of 10-39 the improvement, or, if the contract with the political subdivision 10-40 requires the district to construct said improvements, the district 10-41 shall use the proceeds for the required construction. Bonds issued 10-42 under this section are subject to Sections 29, 31, 32, and 33, 10-43 except that any provision associated with the authorization, levy, 10-44 or collection of an ad valorem tax does not apply. 10-45 (b) A political subdivision located wholly or partially in 10-46 the district may enter into any contract with the district that is 10-47 considered appropriate by its governing body. The political 10-48 subdivision may pledge to the payment of the contract any source of 10-49 revenue available to the political subdivision, including the levy 10-50 and collection of ad valorem taxes, if the political subdivision 10-51 has the authority to levy and collect those taxes. To the extent a 10-52 political subdivision pledges money to be derived from any of its 10-53 own systems, the payments constitute an operating expense of that 10-54 system. 10-55 SECTION 40. CONSTRUCTION. This Act shall be liberally 10-56 construed to accomplish the Act's purposes. 10-57 SECTION 41. FINDING OF BENEFIT. All property, both real and 10-58 personal, in the district will be benefited by the district and by 10-59 the district's improvements and facilities acquired or constructed 10-60 under this Act. 10-61 SECTION 42. LEGISLATIVE FINDING. The requirements of 10-62 Section 59, Article XVI, Texas Constitution, have been met and 10-63 accomplished in due course and time. 10-64 SECTION 43. EMERGENCY. The importance of this legislation 10-65 and the crowded condition of the calendars in both houses create an 10-66 emergency and an imperative public necessity that the 10-67 constitutional rule requiring bills to be read on three several 10-68 days in each house be suspended, and this rule is hereby suspended, 10-69 and that this Act take effect and be in force from and after its 10-70 passage, and it is so enacted. 11-1 * * * * *