SRC-JXG H.B. 3738 76(R) BILL ANALYSIS
Senate Research Center H.B. 3738
76R11519 CMR-FBy: Eiland (Jackson)
Natural Resources
5/13/1999
Engrossed
DIGEST
The Texas Constitution provides for the creation of certain conservation
and reclamation districts. H.B. 3738 would create coastal county
conservation districts in counties that border the Gulf of Mexico and that
have a beach parks board.
PURPOSE
As proposed, H.B. 3738 creates coastal county conservation districts in
counties that border the Gulf of Mexico and that have a beach parks board.
RULEMAKING AUTHORITY
This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 12A, Local Government Code, by adding Chapter 378,
as follows:
CHAPTER 378. COASTAL COUNTY CONSERVATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 378.001. LEGISLATIVE FINDINGS; PURPOSES. Sets forth legislative
findings and purposes of the Act.
Sec. 378.002. CONSTRUCTION OF CHAPTER. Sets forth construction of the
chapter.
Sec. 378.003. DEFINITIONS. Defines "board," "bond," "commission," and
"district."
Sec. 378.004. GOVERNMENTAL AGENCY; TORT CLAIMS. Provides that conservation
management district (district) is a governmental agency, a body politic and
corporate, and a political subdivision of the state. Provides that a
district is a unit of government for purposes of Chapter 101, Civil
Practice and Remedies Code, and operations of a district are considered to
be essential governmental functions and not proprietary functions for all
purposes, including the application of the Texas Tort Claims Act.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 378.021. AREAS ELIGIBLE FOR CREATION OF DISTRICT. Authorizes the
creation of a district only in a county that borders the Gulf of Mexico and
has a beach parks board.
Sec. 378.022. PETITION. Authorizes the creation of a district only after
the county receives a petition requesting one. Sets forth the requirements
of the petition.
Sec. 378.023. COUNTY HEARING; NOTICE. Requires the county or a person
authorized by the commissioners court to set a date, time, and place for a
hearing to consider each petition received. Requires the commissioners
court or authorized person to issue a notice of the date, time, and place
of hearing.
Sec. 378.024. PUBLICATION OF NOTICE. Requires the commissioners court or
authorized person to publish notice of the hearing in a newspaper of
general circulation in the county in which the proposed district is
located. Provides that the publication must occur not later than the
31stday before the date on which the hearing will be held. Requires the
petitioner, not later than the 30th day before the date of the hearing, to
send the notice of the hearing by certified mail to each person who owns
real property in the proposed district, according to the most recent
certified county property tax rolls, other than a property owner who signed
the petition for creation. Requires the tax assessor and collector to
certify from the tax rolls ownership of property on the date the petition
is filed with the commissioners court.
Sec. 378.025. HEARING. Requires the commissioners court, at a hearing set
under this Act, to examine the petition to determine its sufficiency.
Authorizes any interested person to appear before the commissioners court
and offer testimony. Provides that the commissioners court has jurisdiction
to determine each issue relating to the creation of the district. Requires
the commissioners court, if after the hearing it finds that the district is
feasible and necessary and would be a benefit to all or any part of the
land proposed to be included in the district and the public, to grant the
petition. Authorizes the commissioners court to create the district over
only a portion of the area described in the petition.
Sec. 378.026. ORDER; INITIAL DIRECTORS. Requires the commissioners court,
if it grants the petition, to appoint the initial directors in the order
creating the district.
SUBCHAPTER C. BOUNDARIES
Sec. 378.041. BOUNDARIES. Provides that the boundaries of a district are as
prescribed by the commissioners court order creating the district.
Authorizes the commissioners court to issue a subsequent order changing the
boundaries of the district.
Sec. 378.042. ANNEXATION. Authorizes a district to annex land as provided
by Chapter 49, Water Code, subject to the approval of the commissioners
court.
Sec. 378.043. EXCLUDING TERRITORY. Authorizes the board on its own motion,
at any time during which a district does not have outstanding bonds, to
call a hearing on the question of the exclusion of land from the district
in the manner provided by Chapter 49, Water Code, if the exclusions are
practicable, just, or desirable. Requires the board to call a hearing on
the exclusion of land or other property from the district if a landowner or
property owner in the district files with the secretary of the board a
written petition requesting the hearing before the issuance of bonds.
SUBCHAPTER D. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
Sec. 378.061. NUMBER OF DIRECTORS; TERMS. Provides that a district is
governed by a board of seven directors who serve staggered four-year terms.
Sec. 378.062. TERMS OF INITIAL DIRECTORS. Requires the initial directors
to be divided into one group of four directors and one group of three
directors; the group of four directors serves four- year terms, and the
group of three directors serves two-year terms. Requires the grouping of
initial directors and terms for the directors in each group be determined
by the commissioners court.
Sec. 378.063. QUALIFICATIONS OF DIRECTORS. Provides that a person, to be
qualified to serve as a director, must be at least 18 years old and a
resident of the district or an owner of property in the district.
Sec. 378.064. APPOINTMENT OF DIRECTORS. Requires the initial and each
succeeding member of the board of directors be appointed by the
commissioners court. Authorizes board members to serve successive terms.
Sec. 378.065. REMOVAL OF DIRECTOR. Authorizes the commissioners court,
after notice and hearing, to remove a director for misconduct or failure to
carry out the director's duties on a petition by a majority of the
remaining directors.
Sec. 378.066. BOARD VACANCY. Requires a vacancy in the office of director
to be filled by the remaining members of the board for the unexpired term.
Sec. 378.067. DIRECTOR'S BOND AND OATH. Requires a director, as soon as
practicable after the director is appointed, to execute a $10,000 bond
payable to the district and conditioned on the faithful performance of the
director's duties. Provides that each director's bond must be approved by
the board, and requires each director to take the oath of office prescribed
by the constitution for public officers. Requires the bond and oath to be
filed with the district and retained in its records.
Sec. 378.068. OFFICERS. Requires the directors, after they are appointed
and have qualified by executing a bond and taking the oath, to organize by
electing a president, a vicepresident, a secretary, and any other officers
the board considers necessary.
Sec. 378.069. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF EXPENSES.
Entitles a director, in accordance with Section 49.060, Water Code, to
compensation for service on the board and reimbursement for necessary
expenses incurred in carrying out the duties and responsibilities of a
director.
Sec. 378.070. QUORUM. Provides that one-half of the directors constitutes
a quorum, and provides that a concurrence of a majority of a quorum of
directors is required for any official action of the district.
SUBCHAPTER E. POWERS AND DUTIES
Sec. 378.091. GENERAL POWERS OF DISTRICT. Provides that a district has
the rights, powers, privileges, authority, and functions conferred by the
general law of this state applicable to conservation and reclamation
districts created under Article XVI, Section 59, of the Texas Constitution,
including those conferred by Chapter 54, Water Code, with respect to the
purposes for which it is created. Authorizes the district to contract and
manage its affairs and funds for any corporate purpose in accordance with
Chapter 54, Water Code.
Sec. 378.092. SPECIFIC POWERS. Provides that a district has the powers
necessary or convenient to carry out and effect the purposes and provisions
of this Act, including the powers granted in this section. Sets forth
specific powers.
Sec. 378.093. USE AND ALTERATION OF LAND AND PUBLIC WAYS. Authorizes the
district to construct all improvements and facilities necessary to
accomplish the purposes for which it was created on lands, whether publicly
or privately owned. Provides that a district, before constructing an
improvement or facility on lands owned by the county, the state, a
municipality, or another political subdivision, must obtain approval from
the relevant government entity of the plans and specifications of such
improvement or facility. Provides that a district, if it requires certain
modifications to certain facilities or property, must cover all cost and
expense of such modifications. Requires the district to bear damages that
are suffered by the owners of the facilities or property.
Sec. 378.094. NO EMINENT DOMAIN POWER. Prohibits a district from exercising
the power of eminent domain. Authorizes the commissioners court to exercise
its power of eminent domain to implement a district facility or
improvement.
Sec. 378.095. MANAGEMENT BY BOARD OF DIRECTORS. Vests the responsibility
for the management, operation, and control of the property belonging to a
district in the board.
Sec. 378.096. SPECIFIC POWERS AND DUTIES OF BOARD. Authorizes the board to
employ necessary persons, dismiss employees, adopt a seal for the district,
invest funds, establish a fiscal year, establish a system of accounts
required to be open for public inspection, and designate depository banks.
Requires funds of a district to be deposited in the depository bank or
banks unless otherwise required by orders or resolutions authorizing the
issuance of the district's bonds or notes. Provides that funds in the
depository bank or banks, to the extent that they are not insured by the
Federal Deposit Insurance Corporation, must be secured in the manner
provided by law for the security of funds of counties. Authorizes the board
by resolution to authorize a designated representative to supervise the
substitution of securities pledged to secure the district's fund.
Authorizes the board to adopt and enforce reasonable rules and regulations
governing the administration of the district and its programs and projects.
Authorizes the board, by resolution, to establish or change the name of the
district.
Sec. 378.097. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT. Authorizes
the board to appoint a hearings examiner to conduct any hearing called by
the board, including a hearing required by Chapter 395, Local Government
Code. Authorizes the hearings examiner to be an employee of the district
or a member of the district's board. Requires the hearing to be conducted
in accordance with Chapter 2001, Government Code.
SUBCHAPTER F. ASSESSMENTS
Sec. 378.111. GENERAL POWERS RELATING TO ASSESSMENTS. Authorizes the board
to levy and collect an assessment for any purpose authorized by this Act.
Authorizes the board of a district to undertake improvement projects and
services that confer a special benefit on all or a definable part of the
district. Authorizes the board to levy and collect special assessment on
property in that area, based on the benefit conferred by the improvement
project or services, to pay all or part of the cost of the project and
services. Authorizes the district to provide improvements and services to
an area outside the boundaries of the district, if the board determines
that there is a benefit to the district.
Sec. 378.112. SPECIFIC POWERS RELATING TO ASSESSMENTS. Authorizes an
improvement project or services provided by the district to include the
construction, acquisition, improvement, relocation, operation, maintenance,
or provision of certain improvements, projects, or services; and expenses
incurred in the establishment, administration, maintenance, and operation
of the district or any of its improvements, projects, or services.
Sec. 378.113. PROPOSED ASSESSMENTS. Authorizes services or improvement
projects to be financed under this Act after a hearing notice given as
required by this Act and a public hearing by the board on the advisability
of the improvements and services and the proposed assessments.
Sec. 378.114. PETITION REQUIRED. Prohibits the board from financing
services and improvement projects under this Act unless a written petition
has been filed with the board requesting those improvements or services
signed by at least 25 persons who own real property in the district if,
according to the most recent certified property tax rolls, more than 25
persons own real property in the district.
Sec. 378.115. ASSESSMENT ELECTION. Prohibits assessments from being levied
unless approved by a majority of the qualified voters in the district
voting at an election held for that purpose unless a written petition has
been filed with the board requesting the improvements or services which is
signed by the owners of 50 percent or more of the assessed value of the
property in the district to be assessed as determined from the most recent
certified county property tax rolls. Requires elections required by this
section to be conducted in accordance with Chapter376, Local Government
Code.
Sec. 378.116. NOTICE OF HEARING. Requires notice of the hearing to be given
in a newspaper with general circulation in the county in which the district
is located. Provides that the final publication must be made no later than
the 30th day before the date of the hearing. Sets forth the composition of
the notice. Requires the written notice to be sent by certified mail not
later than the 30th day before the date of the hearing. Requires the
notice to be mailed to each property owner in the district who will be
subject to assessment at the current address of the property to be assessed
as reflected on the tax rolls.
Sec. 378.117. CONCLUSION OF HEARING; FINDINGS. Authorizes a hearing on the
services or improvement project, whether conducted by the board or a
hearings examiner, to be adjourned from time to time. Requires the board,
at the conclusion of the hearing to make findings by resolution or order
relating to the advisability of the improvement project or services, the
nature of the improvement project or services, the estimated cost, the area
benefitted, the method of assessment, and the method and time for payment
of the assessment. Requires the hearings examiner, if a hearings examiner
is appointed to conduct the hearing, to file with the board a report
stating the examiner's findings and conclusions after conclusion of the
hearing.
Sec. 378.118. AREA TO BE ASSESSED. Authorizes the area of the district to
be assessed according to the findings of the board to be the entire
district or any part of the district and to be less than the area proposed
in the notice of the hearing. Prohibits the area to be assessed, except as
provided by Subsection(c), from including property that is not within the
district boundaries at the time of the hearing unless there is an
additional hearing, preceded by the required notice. Authorizes the owner
of improvements constructed or land annexed to the district after the
district has imposed assessments to waive the right to notice and an
assessment hearing and to agree to the imposition and payment of
assessments at an agreed rate for improvements constructed or land annexed
to the district.
Sec. 378.119. OBJECTIONS; LEVY OF ASSESSMENT. Requires the board, at a
hearing on proposed assessments, at any adjournment of the hearing, or
after consideration of the hearings examiner's report, to hear and rule on
all objections to each proposed assessment. Authorizes the board to amend
proposed assessments for any parcel. Requires the board, by order or
resolution, after all objections have been heard and action has been taken
with regard to those objections, to levy the assessments as special
assessments on the property and to specify the method of payment of the
assessments. Authorizes the board to provide that those assessments be paid
in periodic installments, including interest. Provides that periodic
installments must be in amounts sufficient to meet annual costs for
services and improvements as provided by this Act and continue for the
number of years required to retire indebtedness or pay for the services to
be rendered. Authorizes the board to provide interest charges or penalties
for failure to make timely payment and also to levy an amount to cover
delinquencies and expenses of collection. Authorizes the board, if
assessments are levied for more than one service or improvement project, to
authorize that assessments collected for one service or improvement project
be borrowed to be used for another service or improvement project.
Requires the board to establish a procedure for the distribution or use of
any assessments in excess of those necessary to finance the services or
improvement project for which those assessments were collected.
Sec. 378.120. APPORTIONMENT OF COST. Requires the portion of the cost of an
improvement project or services to be assessed against the property in the
district to be apportioned by the board based on the special benefits
accruing to the property because of the improvement project or services.
Authorizes the cost to be assessed equally by front foot or by square foot
of land area against all property in the district; against property
according to the value of the property as determined by the board, with or
without regard to structures or other improvements on the property; or on
any other reasonable assessment plan that results in imposing fair and
equitable shares of the cost on property similarly benefitted.
Sec. 378.121. ASSESSMENT ROLL. Requires the board, if the total cost of an
improvement project or services is determined, to levy the assessments
against each parcel of land against which an assessment may be levied in
the district. Authorizes the board, with regard to an assessment for
services, to levy an annual assessment that may be lower but not higher
than the initial assessment. Requires the board to have an assessment roll
prepared showing the assessments against each property and the board's
basis for the assessment. Requires the assessment roll to be filed with the
secretary of the board or other officer who performs the function of
secretary and be open for public inspection.
Sec. 378.122. INTEREST ON ASSESSMENTS; LIEN. Prohibits the rate specified
by the board at which assessments bear interest from exceeding the interest
rate permitted by Chapter 3, Acts of the 61st Legislature, Regular Session,
1969 (Article 717k-2, V.T.C.S.). Requires interest on an assessment between
the effective date of the order or resolution levying the assessment and
the date the first installment and any related penalty is payable to be
added to the first installment. Requires the interest or penalties on all
unpaid installments to be added to each subsequent installment until paid.
Provides that assessments, reassessments or assessments resulting from an
addition to or correction of the assessment roll by the district, penalties
and interest on an assessment or reassessment, expenses of collection, and
reasonable attorneys' fees incurred by the district area first and prior
lien against the property assessed; are superior to any other lien or claim
other than a lien or claim for county, school district, or municipal ad
valorem taxes; and are the personal liability of and charge against the
owners of the property even if the owners are not named in the assessment
proceedings. Provides that the lien is effective from the date of the
resolution of the board levying the assessment until the assessment is
paid. Authorizes the board to enforce the lien in the same manner that the
board is authorized to enforce an ad valorem tax lien against real
property. Authorizes the owner of any property assessed to pay at any time
the entire assessment against any lot or parcel with accrued interest to
the date of the payment.
Sec. 378.123. SUPPLEMENTAL ASSESSMENTS. Authorizes the board, after notice
and hearing in the manner required for original assessments, to make
supplemental assessments to correct omissions or mistakes in the assessment
relating to the total cost of the improvement project or services; or
covering delinquencies or costs of collection.
Sec. 378.124. APPEAL. Authorizes a property owner, after determination of
an assessment, to appeal the assessment to the board. Sets forth the
appeal process.
Sec. 378.125. APPEAL OF ORDER. Authorizes a person against whom an
assessment is made by board order, if notice has been given as required by
this Act, to appeal the assessment to a district court in the county in
which the district is located in the manner provided for the appeal of
contested cases under Chapter 2001, Government Code. Provides that review
by the district court is by trial de novo.
SUBCHAPTER G. EXEMPTIONS
Sec. 378.141. PUBLIC UTILITIES. Prohibits the district from imposing an
assessment on the property, equipment, or facilities of a public utility.
Sec. 378.142. GOVERNMENTAL ENTITIES; ASSESSMENTS. Requires payment of
assessments by municipalities, counties, other political subdivisions, and
organizations exempt from federal income tax under Section 501(c)(3),
Internal Revenue Code of 1986, to be established by contract. Authorizes
municipalities, counties, and other political subdivisions to contract with
the district under terms and conditions those entities consider advisable
to provide for the payment of assessments.
SUBCHAPTER H. FUNDS; BONDS
Sec. 378.161. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND SERVICES.
Authorizes the cost of any improvement project or services, including
interest during construction and costs of issuance of bonds, to be paid
from general or available funds, assessments, or the proceeds of bonds
payable from revenues, assessments, grants, gifts, contracts, leases, or
any combination of those funds. Authorizes the board, during the progress
of an improvement project or services, to issue temporary notes to pay the
costs of the improvement project or services and issue bonds on completion.
Authorizes the costs of more than one improvement project or service to be
paid from a single issue and sale of bonds without other consolidation
proceedings before the bond issue.
Sec. 378.162. BONDS. Authorizes the board, for the payment of all or part
of the costs of an improvement project or services, to issue bonds in one
or more series payable from and secured by assessments, revenues, grants,
gifts, contracts, leases, or any combination of those funds. Authorizes
bonds to be liens on all or part of the revenue derived from improvements
authorized under this Act, including installment payments of special
assessments or from any other source pledged to their payment. Requires
the district to have the power to issue bonds in the manner set forth in
Chapter 375J, Local Government Code, relating to bonds issued by municipal
management districts. Requires bonds to be issued and approved by the board
of directors of the district without the consent of the county, any
municipality, or TNRCC.
SUBCHAPTER I. COMPETITIVE BIDDING
Sec. 378.181. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS CONTRACTS.
Provides that contracts of the district are subject to the competitive
bidding requirements of Chapter 49, Water Code.
Sec. 378.182. SUPERSEDES OTHER LAW. Provides that this Act states the
required procedures necessary for the district to award contracts and
supersedes any law or other requirement with respect to award of contracts.
SUBCHAPTER J. BOND ELECTION
Sec. 378.201. ELECTION TO APPROVE ISSUANCE OF BONDS. Prohibits bonds
secured by assessments from being issued unless approved by a majority of
the qualified voters in the district voting at an election held for that
purpose; or the district received a petition requesting the assessment and
the issuance of bonds which is signed by the owners of 50 percent or more
of the assessed value of the property in the district to be assessed as
determined from the most recent certified county property tax rolls.
Provides that bonds not secured by assessments are not subject to the
requirement of an election and authorizes their issuance without an
election. Requires an election required by this section to be conducted in
accordance with Chapter 376, Local Government Code.
SUBCHAPTER K. DISSOLUTION
Sec. 378.221. DISSOLUTION BY BOARD VOTE. Authorizes the board of a
district by majority vote to dissolve the district at any time.
Sec. 378.222. DISSOLUTION BY COUNTY ORDER. Authorizes the commissioners
court of the county in which a district is located, by a vote of not less
than two-thirds, to adopt a resolution dissolving the district.
Sec. 378.223. LIMITATION. Prohibits the dissolution of a district by its
board or by a county if the district has any outstanding bonded
indebtedness until that bonded indebtedness has been repaid or defeased in
accordance with the order or resolution authorizing the issuance of the
bonds.
SUBCHAPTER L. CONTRACTS WITH DISTRICT
Sec. 378.241. CONTRACTS WITH DISTRICT. Authorizes a municipality, county,
or any other political subdivision of the state to contract with the
district to implement a project of the district or aid and assist the
district in providing the services authorized under this Act. Authorizes a
contract under this section to be for a period on which the parties agree;
include terms on which the parties agree; be payable from assessments or
any other sources of revenue that may be available for such purpose; and
provide that assessments or other revenue collected at a district project
or from a person using or purchasing a commodity or service at a district
project may be paid or rebated to the district under the terms of the
contract. Authorizes the district to enter into a contract, lease, or
agreement with or make or accept grants and loans to or from the United
States, including federal departments and agencies; the state or a state
agency; a county, municipality, or other political subdivision of the
state; a public or private corporation; and any other person. Authorizes
the district to perform all acts necessary for the full exercise of the
powers vested in the district on terms and conditions and for the term the
board is authorized to determine as advisable.
SECTION 2. Emergency clause.
Effective date: upon passage.