76R11519 CMR-F By Eiland H.B. No. 3738 Substitute the following for H.B. No. 3738: By Counts C.S.H.B. No. 3738 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to counties authorized to create coastal county 1-3 conservation districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle A, Title 12, Local Government Code, is 1-6 amended by adding Chapter 378 to read as follows: 1-7 CHAPTER 378. COASTAL COUNTY CONSERVATION DISTRICTS 1-8 SUBCHAPTER A. GENERAL PROVISIONS 1-9 Sec. 378.001. LEGISLATIVE FINDINGS; PURPOSES. (a) The 1-10 creation of coastal county conservation districts is declared to be 1-11 essential to the accomplishment of the purposes of Section 59, 1-12 Article XVI, and Section 52-a, Article III, of the Texas 1-13 Constitution, and to the accomplishment of the other public 1-14 purposes stated in this chapter. 1-15 (b) The creation of each district is necessary to promote, 1-16 develop, encourage, and maintain employment, commerce, economic 1-17 development, and the public welfare in the commercial and 1-18 residential areas of this state bordering on the coastal waters of 1-19 the state. 1-20 (c) The creation of districts and this chapter may not be 1-21 interpreted to relieve any county or municipality from providing 1-22 services to an area included in the district or to release the 1-23 county or municipality from the obligation it has to provide 1-24 services to that area. A district is created to supplement and not 2-1 supplant the services of the county or municipality. 2-2 (d) All of the land and other property to be included within 2-3 the boundaries of a district will be benefited by the works and 2-4 projects that are to be accomplished and the services to be 2-5 provided by the district under powers conferred by Section 59, 2-6 Article XVI, and Section 52-a, Article III, of the Texas 2-7 Constitution, and other powers granted under this chapter. 2-8 (e) A district is created to serve a public use and benefit. 2-9 (f) The creation of each district is essential to further 2-10 the public purposes of development and diversification of the 2-11 economy of the state, the elimination of unemployment and 2-12 underemployment, and the development or expansion of commerce and 2-13 is in the public interest. 2-14 (g) The creation of each district is necessary to protect 2-15 the state's natural resources through beach, sand dune, and shore 2-16 renourishment, sand dune protection, vegetation, and stabilization, 2-17 and all other forms of beach and shore protection, erosion 2-18 abatement, and reclamation, as well as through the construction and 2-19 maintenance of bulkheads, jetties, breakwaters, seawalls, and all 2-20 other facilities that protect beaches from erosion. 2-21 (h) The creation of each district is necessary to promote, 2-22 develop, and encourage navigation along the state's coastal waters, 2-23 bays, and inlets, including the deepening and widening of 2-24 navigation channels. 2-25 (i) Each improvement project or service authorized by this 2-26 chapter is found and declared to carry out a public purpose. 2-27 Sec. 378.002. CONSTRUCTION OF CHAPTER. (a) This chapter 3-1 shall be liberally construed in conformity with the findings and 3-2 purposes in Section 378.001. 3-3 (b) If any provision of general law is in conflict or 3-4 inconsistent with this chapter, this chapter prevails. Any general 3-5 law not in conflict or inconsistent with this chapter is adopted 3-6 and incorporated by reference. 3-7 Sec. 378.003. DEFINITIONS. In this chapter: 3-8 (1) "Board" means a board of directors of a district. 3-9 (2) "Bond" means any type of interest-bearing 3-10 obligation, including a bond, note, bond anticipation note, 3-11 certificate of participation, lease, contract, or other evidence of 3-12 indebtedness. 3-13 (3) "Commission" means the Texas Natural Resource 3-14 Conservation Commission. 3-15 (4) "District" means a conservation management 3-16 district created under this chapter. 3-17 Sec. 378.004. GOVERNMENTAL AGENCY; TORT CLAIMS. (a) A 3-18 district is a governmental agency, a body politic and corporate, 3-19 and a political subdivision of the state. 3-20 (b) A district is a unit of government for purposes of 3-21 Chapter 101, Civil Practice and Remedies Code, and operations of a 3-22 district are considered to be essential governmental functions and 3-23 not proprietary functions for all purposes, including the 3-24 application of the Texas Tort Claims Act. 3-25 SUBCHAPTER B. CREATION OF DISTRICT 3-26 Sec. 378.021. AREAS ELIGIBLE FOR CREATION OF DISTRICT. A 3-27 district may be created only in a county that borders the Gulf of 4-1 Mexico and has a beach parks board. 4-2 Sec. 378.022. PETITION. (a) Before a district may be 4-3 created, the commissioners court must receive a petition requesting 4-4 creation of the district. 4-5 (b) The petition must be signed by: 4-6 (1) the owners of a majority of the assessed value of 4-7 the real property in the proposed district, according to the most 4-8 recent certified county property tax rolls; or 4-9 (2) 50 persons who own real property in the proposed 4-10 district if, according to the most recent certified county property 4-11 tax rolls, more than 50 persons own real property in the proposed 4-12 district. 4-13 (c) The petition must: 4-14 (1) describe the boundaries of the proposed district 4-15 by metes and bounds or, if there is a recorded map or plat and 4-16 survey of the area, by lot and block number; 4-17 (2) state the specific purposes for which the district 4-18 will be created; 4-19 (3) state the general nature of the work, projects, or 4-20 services proposed to be provided, the necessity for those services, 4-21 and the costs as estimated by the persons filing the petition; 4-22 (4) include a name of the district; and 4-23 (5) include a proposed list of initial directors. 4-24 Sec. 378.023. COUNTY HEARING; NOTICE. The commissioners 4-25 court or a person authorized by the commissioners court shall set a 4-26 date, time, and place for a hearing to consider each petition 4-27 received. The commissioners court or authorized person shall issue 5-1 a notice of the date, time, and place of hearing. 5-2 Sec. 378.024. PUBLICATION OF NOTICE. (a) The commissioners 5-3 court or authorized person shall publish notice of the hearing in a 5-4 newspaper of general circulation in the county in which the 5-5 proposed district is located. The publication must occur not later 5-6 than the 31st day before the date on which the hearing will be 5-7 held. 5-8 (b) Not later than the 30th day before the date of the 5-9 hearing, the petitioner shall send the notice of the hearing by 5-10 certified mail, return receipt requested, to each person who owns 5-11 real property in the proposed district, according to the most 5-12 recent certified county property tax rolls, other than a property 5-13 owner who signed the petition for creation. The tax assessor and 5-14 collector shall certify from the tax rolls ownership of property on 5-15 the date the petition is filed with the commissioners court. 5-16 Sec. 378.025. HEARING. (a) At a hearing set under Section 5-17 378.023, the commissioners court shall examine the petition to 5-18 determine its sufficiency. Any interested person may appear before 5-19 the commissioners court and offer testimony. 5-20 (b) The commissioners court has jurisdiction to determine 5-21 each issue relating to the creation of the district. 5-22 (c) If after the hearing the commissioners court finds that 5-23 the district is feasible and necessary and would be a benefit to 5-24 all or any part of the land proposed to be included in the district 5-25 and benefit the public, the commissioners court shall make that 5-26 finding and grant the petition. The commissioners court may create 5-27 the district over only a portion of the area described in the 6-1 petition. 6-2 Sec. 378.026. ORDER; INITIAL DIRECTORS. If the 6-3 commissioners court grants the petition, the commissioners court 6-4 shall appoint the initial directors in the order creating the 6-5 district. 6-6 SUBCHAPTER C. BOUNDARIES 6-7 Sec. 378.041. BOUNDARIES. The boundaries of a district are 6-8 as prescribed by the order creating the district. The 6-9 commissioners court may issue a subsequent order changing the 6-10 boundaries of the district. 6-11 Sec. 378.042. ANNEXATION. A district may annex land as 6-12 provided by Subchapter J, Chapter 49, Water Code, subject to the 6-13 approval of the commissioners court. 6-14 Sec. 378.043. EXCLUDING TERRITORY. (a) At any time during 6-15 which a district does not have outstanding bonds, the board on its 6-16 own motion may call a hearing on the question of the exclusion of 6-17 land from the district in the manner provided by Subchapter J, 6-18 Chapter 49, Water Code, if the exclusions are practicable, just, or 6-19 desirable. 6-20 (b) The board shall call a hearing on the exclusion of land 6-21 or other property from the district if a landowner or property 6-22 owner in the district files with the secretary of the board a 6-23 written petition requesting the hearing before the issuance of 6-24 bonds. 6-25 SUBCHAPTER D. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS 6-26 Sec. 378.061. NUMBER OF DIRECTORS; TERMS. A district is 6-27 governed by a board of seven directors who serve staggered 7-1 four-year terms. 7-2 Sec. 378.062. TERMS OF INITIAL DIRECTORS. The initial 7-3 directors shall be divided into one group of four directors and one 7-4 group of three directors; the group of four directors serves 7-5 four-year terms, and the group of three directors serves two-year 7-6 terms. The grouping of initial directors and terms for the 7-7 directors in each group shall be determined by the county. 7-8 Sec. 378.063. QUALIFICATIONS OF DIRECTORS. To be qualified 7-9 to serve as a director, a person must be at least 18 years old and: 7-10 (1) a resident of the district; or 7-11 (2) an owner of property in the district. 7-12 Sec. 378.064. APPOINTMENT OF DIRECTORS. (a) The initial 7-13 and all succeeding members of the board of directors shall be 7-14 appointed by the commissioners court. 7-15 (b) A director may serve successive terms. 7-16 Sec. 378.065. REMOVAL OF DIRECTOR. The commissioners court 7-17 may remove a director for misconduct or failure to carry out the 7-18 director's duties on petition by a majority of the remaining 7-19 directors and after notice and hearing. 7-20 Sec. 378.066. BOARD VACANCY. A vacancy in the office of 7-21 director shall be filled by appointment by the remaining members of 7-22 the board for the unexpired term. 7-23 Sec. 378.067. DIRECTOR'S BOND AND OATH. (a) As soon as 7-24 practicable after a director is appointed, the director shall 7-25 execute a $10,000 bond payable to the district and conditioned on 7-26 the faithful performance of the director's duties. 7-27 (b) Each director's bond must be approved by the board, and 8-1 each director shall take the oath of office prescribed by the 8-2 constitution for public officers. 8-3 (c) The bond and oath shall be filed with the district and 8-4 retained in its records. 8-5 Sec. 378.068. OFFICERS. After directors are appointed and 8-6 have qualified by executing a bond and taking the oath, they shall 8-7 organize by electing a president, a vice president, a secretary, 8-8 and any other officers the board considers necessary. 8-9 Sec. 378.069. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF 8-10 EXPENSES. In accordance with Section 49.060, Water Code, a 8-11 director is entitled to compensation for service on the board and 8-12 is entitled to be reimbursed for necessary expenses incurred in 8-13 carrying out the duties and responsibilities of a director. 8-14 Sec. 378.070. QUORUM. One-half of the directors constitutes 8-15 a quorum, and a concurrence of a majority of a quorum of directors 8-16 is required for any official action of the district. 8-17 SUBCHAPTER E. POWERS AND DUTIES 8-18 Sec. 378.091. GENERAL POWERS OF DISTRICT. (a) A district 8-19 has the rights, powers, privileges, authority, and functions 8-20 conferred by the general law of this state applicable to 8-21 conservation and reclamation districts created under Section 59, 8-22 Article XVI, of the Texas Constitution, including those conferred 8-23 by Chapter 54, Water Code, with respect to the purposes for which 8-24 it is created. 8-25 (b) The district may contract and manage its affairs and 8-26 funds for any corporate purpose in accordance with Chapter 54, 8-27 Water Code. 9-1 Sec. 378.092. SPECIFIC POWERS. (a) A district has the 9-2 powers necessary or convenient to carry out and effect the purposes 9-3 and provisions of this chapter, including the powers granted in 9-4 this section. 9-5 (b) A district has perpetual succession. 9-6 (c) A district may sue and be sued in courts of competent 9-7 jurisdiction, may institute and prosecute suits without giving 9-8 security for costs, and may appeal from a judgment without giving a 9-9 supersedeas or cost bond. 9-10 (d) A district may incur liabilities, borrow money on terms 9-11 and conditions the board determines, and issue notes, bonds, or 9-12 other obligations. 9-13 (e) A district may acquire by grant, purchase, gift, devise, 9-14 lease, or otherwise, and may hold, use, sell, lease, or dispose of 9-15 real and personal property, licenses, patents, rights, and 9-16 interests necessary, convenient, or useful for the full exercise of 9-17 any of its powers under this chapter. 9-18 (f) A district may acquire, construct, complete, develop, 9-19 own, operate, and maintain permanent improvements and provide 9-20 services inside and outside its boundaries. 9-21 (g) A district may enter into agreements with a person or 9-22 entity, public or private, for the joint use of facilities, 9-23 installations, and property. 9-24 (h) A district may enter contracts, leases, and agreements 9-25 with and accept grants and loans from the United States and its 9-26 departments and agencies, the state and its agencies, counties, 9-27 municipalities, and political subdivisions, public or private 10-1 corporations, and other persons and may perform all acts necessary 10-2 for the full exercise of the powers vested in it on terms and 10-3 conditions and for the term the board may determine to be 10-4 advisable. 10-5 (i) A district may acquire property under conditional sales 10-6 contracts, leases, equipment trust certificates, or any other form 10-7 of contract or trust agreement. 10-8 (j) A district may sell, lease, convey, or otherwise dispose 10-9 of any of its rights, interests, or properties that are not needed 10-10 for or, in the case of leases, that are not consistent with, the 10-11 efficient operation and maintenance of the district's improvements. 10-12 A district may sell, lease, or otherwise dispose of any surplus 10-13 material or personal or real property not needed for its 10-14 requirements or for the purpose of carrying out its powers under 10-15 this chapter. 10-16 (k) A district may procure and pay premiums to insurers for 10-17 insurance of any type in amounts considered necessary or advisable 10-18 by the board. 10-19 (l) A district may do anything necessary, convenient, or 10-20 desirable to carry out the powers expressly granted or implied by 10-21 this chapter. 10-22 Sec. 378.093. USE AND ALTERATION OF LAND AND PUBLIC WAYS. 10-23 (a) The district may construct all improvements and facilities 10-24 necessary to accomplish the purposes for which it was created on 10-25 lands, whether publicly or privately owned. 10-26 (b) Before constructing an improvement or facility on lands 10-27 owned by the county, the state, a municipality, or another 11-1 political subdivision, a district must obtain approval from the 11-2 relevant government entity of the plans and specifications of such 11-3 improvement or facility. 11-4 (c) If a district, in exercising any of the powers conferred 11-5 by this chapter, requires the relocation, adjustment, raising, 11-6 lowering, rerouting, or changing the grade of or altering the 11-7 construction of any street, alley, highway, overpass, underpass, or 11-8 road, any railroad track, bridge, or other facilities or property, 11-9 any electric lines, conduits, or other facilities or property, any 11-10 telephone or telegraph lines, conduits, or other facilities or 11-11 property, any gas transmission or distribution pipes, pipelines, 11-12 mains, or other facilities or property, any water, sanitary sewer 11-13 or storm sewer pipes, pipelines, mains, or other facilities, or 11-14 property, any cable television lines, cables, conduits, or other 11-15 facilities or property, or any other pipelines and any facilities 11-16 or properties relating to those pipelines, the relocation, 11-17 adjustment, raising, lowering, rerouting, or changing of grade, or 11-18 altering of construction must be accomplished at the sole cost and 11-19 expense of the district, and damages that are suffered by the 11-20 owners of the property or facilities shall be borne by the 11-21 district. 11-22 Sec. 378.094. NO EMINENT DOMAIN POWER. A district may not 11-23 exercise the power of eminent domain. The county may exercise its 11-24 power of eminent domain to implement a district facility or 11-25 improvement. 11-26 Sec. 378.095. MANAGEMENT BY BOARD OF DIRECTORS. The 11-27 responsibility for the management, operation, and control of the 12-1 property belonging to a district is vested in the board. 12-2 Sec. 378.096. SPECIFIC POWERS AND DUTIES OF BOARD. (a) The 12-3 board may: 12-4 (1) employ all persons, firms, partnerships, or 12-5 corporations considered necessary by the board for the conduct of 12-6 the affairs of the district, including a general manager, 12-7 bookkeepers, auditors, engineers, attorneys, financial advisers, 12-8 peace or traffic control officers, architects, and operating or 12-9 management companies and prescribe the duties, tenure, and 12-10 compensation of each; 12-11 (2) dismiss employees; 12-12 (3) adopt a seal for the district; 12-13 (4) invest the district's money in any investments 12-14 authorized by Subchapter A, Chapter 2256, Government Code, and 12-15 provide, by resolution, that an authorized representative manage 12-16 the district's funds and invest and reinvest the money on terms the 12-17 board considers advisable; 12-18 (5) establish a fiscal year for the district; 12-19 (6) establish a complete system of accounts for the 12-20 district and each year shall have prepared an audit of the 12-21 district's affairs, which shall be open to public inspection, by an 12-22 independent certified public accountant or a firm of independent 12-23 certified public accountants; and 12-24 (7) designate one or more banks to serve as the 12-25 depository bank or banks. 12-26 (b) Money of a district shall be deposited in the depository 12-27 bank or banks unless otherwise required by orders or resolutions 13-1 authorizing the issuance of the district's bonds or notes. To the 13-2 extent that money in the depository bank or banks is not insured by 13-3 the Federal Deposit Insurance Corporation, the money must be 13-4 secured in the manner provided by law for the security of funds of 13-5 counties. The board by resolution may authorize a designated 13-6 representative to supervise the substitution of securities pledged 13-7 to secure the district's money. 13-8 (c) The board may adopt and enforce reasonable rules and 13-9 regulations governing the administration of the district and its 13-10 programs and projects. 13-11 (d) The name of the district may be established or changed 13-12 by resolution of the board. 13-13 Sec. 378.097. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE 13-14 ACT. (a) The board may appoint a hearings examiner to conduct any 13-15 hearing called by the board, including a hearing required by 13-16 Chapter 395, Local Government Code. The hearings examiner may be 13-17 an employee of the district or a member of the district's board. 13-18 (b) The hearing shall be conducted in accordance with 13-19 Chapter 2001, Government Code. 13-20 SUBCHAPTER F. ASSESSMENTS 13-21 Sec. 378.111. GENERAL POWERS RELATING TO ASSESSMENTS. (a) 13-22 The board may levy and collect an assessment for any purpose 13-23 authorized by this chapter only if the assessment is approved by 13-24 the commissioners court. 13-25 (b) The board may undertake an improvement project or 13-26 service that confers a special benefit on all or a definable part 13-27 of the district. The board may impose and collect a special 14-1 assessment on property in that area, based on the benefit conferred 14-2 by the improvement project or service, to pay all or part of the 14-3 cost of the project or service. If the board determines that there 14-4 is a benefit to the district, the district may provide an 14-5 improvement or service to an area outside the boundaries of the 14-6 district. 14-7 Sec. 378.112. SPECIFIC POWERS RELATING TO ASSESSMENTS. An 14-8 improvement project or service provided by the district may include 14-9 the construction, acquisition, improvement, relocation, operation, 14-10 maintenance, or provision of: 14-11 (1) crosswalks; seawalls; sand dune, beach, and shore 14-12 stabilization and renourishment; sand dune construction, 14-13 vegetation, protection, and stabilization; beach and shore erosion 14-14 abatement; bulkheads, jetties, and breakwaters; geotubes; 14-15 navigation projects, including the deepening and widening of 14-16 navigation channels; and other similar improvements; and 14-17 (2) expenses incurred in the establishment, 14-18 administration, maintenance, and operation of the district or any 14-19 of its improvements, projects, or services. 14-20 Sec. 378.113. PROPOSED ASSESSMENTS. An improvement project 14-21 or service may be financed under this chapter after notice of a 14-22 hearing is given as required by this subchapter and the board holds 14-23 a public hearing on the advisability of the improvement project or 14-24 service and the proposed assessment. 14-25 Sec. 378.114. PETITION REQUIRED. The board may not finance 14-26 an improvement project or service under this chapter unless a 14-27 written petition has been filed with the board requesting the 15-1 improvement project or service. The petition must be signed by at 15-2 least 25 persons who own real property in the district if more than 15-3 25 persons own real property in the district according to the most 15-4 recent certified property tax rolls. 15-5 Sec. 378.115. ASSESSMENT ELECTION. (a) An assessment may 15-6 not be imposed unless: 15-7 (1) it is approved by a majority of the qualified 15-8 voters in the district voting at an election held for that purpose; 15-9 or 15-10 (2) the board receives a written petition requesting 15-11 the improvement project or service that is signed by the owners of 15-12 50 percent or more of the assessed value of the property in the 15-13 district to be assessed, as determined from the most recent 15-14 certified county property tax rolls. 15-15 (b) An election required by this section must be conducted 15-16 in accordance with Chapter 376. 15-17 Sec. 378.116. NOTICE OF HEARING. (a) Notice of the hearing 15-18 shall be given in a newspaper with general circulation in the 15-19 county in which the district is located. The publication must be 15-20 made not later than the 30th day before the date of the hearing. 15-21 (b) The notice must include: 15-22 (1) the time and place of the hearing; 15-23 (2) the general nature of the proposed improvement 15-24 project or service; 15-25 (3) the estimated cost of the improvement project or 15-26 service, including interest during construction and associated 15-27 financing costs; and 16-1 (4) the proposed method of assessment. 16-2 (c) Written notice containing the information required by 16-3 this section shall be mailed by certified mail, return receipt 16-4 requested, not later than the 30th day before the date of the 16-5 hearing. The notice shall be mailed to each property owner in the 16-6 district who will be subject to assessment at the current address 16-7 of the property to be assessed as reflected on the tax rolls. 16-8 Sec. 378.117. CONCLUSION OF HEARING; FINDINGS. (a) A 16-9 hearing on the improvement project or service, whether conducted by 16-10 the board or a hearings examiner, may be adjourned from time to 16-11 time. 16-12 (b) At the conclusion of the hearing, the board shall make 16-13 findings by resolution or order relating to the advisability of the 16-14 improvement project or service, the nature of the improvement 16-15 project or service, the estimated cost, the area benefited, the 16-16 method of assessment, and the method and time for payment of the 16-17 assessment. 16-18 (c) If a hearings examiner is appointed to conduct the 16-19 hearing, after conclusion of the hearing, the hearings examiner 16-20 shall file with the board a report stating the examiner's findings 16-21 and conclusions. 16-22 Sec. 378.118. AREA TO BE ASSESSED. (a) The area of the 16-23 district to be assessed according to the findings of the board may 16-24 be the entire district or any part of the district and may be less 16-25 than the area proposed in the notice of the hearing. 16-26 (b) Except as provided by Subsection (c), the area to be 16-27 assessed may not include property that is not within the district 17-1 boundaries at the time of the hearing unless there is an additional 17-2 hearing preceded by the required notice. 17-3 (c) The owner of improvements constructed or land annexed to 17-4 the district after the district has imposed an assessment may waive 17-5 the right to notice and an assessment hearing and may agree to the 17-6 imposition and payment of an assessment at an agreed rate for 17-7 improvements constructed or land annexed to the district. 17-8 Sec. 378.119. OBJECTIONS; LEVY OF ASSESSMENT. (a) At a 17-9 hearing on proposed assessments, at any adjournment of the hearing 17-10 or after consideration of the hearings examiner's report, the board 17-11 shall hear and rule on all objections to each proposed assessment. 17-12 (b) The board may amend a proposed assessment for any 17-13 parcel. 17-14 (c) After all objections have been heard and action has been 17-15 taken with regard to those objections, the board, by order or 17-16 resolution, shall levy the assessment as a special assessment on 17-17 the property and shall specify the method of payment of the 17-18 assessment and may provide that the assessment be paid in periodic 17-19 installments, including interest. 17-20 (d) Periodic installments must be in amounts sufficient to 17-21 meet annual costs for services and improvements as provided by this 17-22 chapter and continue for the number of years required to retire 17-23 indebtedness or pay for the services to be rendered. The board may 17-24 provide interest charges or penalties for failure to make timely 17-25 payment and also may impose an amount to cover delinquencies and 17-26 expenses of collection. 17-27 (e) If an assessment is imposed for more than one service or 18-1 improvement project, the board may provide that an assessment 18-2 collected for one improvement project or service may be borrowed to 18-3 be used for another improvement project or service. 18-4 (f) The board shall establish a procedure for the 18-5 distribution or use of any assessment in excess of those necessary 18-6 to finance the improvement project or service for which the 18-7 assessment was collected. 18-8 Sec. 378.120. APPORTIONMENT OF COST. The portion of the 18-9 cost of an improvement project or service to be assessed against 18-10 the property in the district shall be apportioned by the board 18-11 based on the special benefits accruing to the property because of 18-12 the improvement project or service. The cost may be assessed: 18-13 (1) equally by front foot or square foot of land area 18-14 against all property in the district; 18-15 (2) against property according to the value of the 18-16 property as determined by the board, with or without regard to 18-17 structures or other improvements on the property; or 18-18 (3) on any other reasonable assessment plan that 18-19 results in imposing fair and equitable shares of the cost on 18-20 property similarly benefited. 18-21 Sec. 378.121. ASSESSMENT ROLL. If the total cost of an 18-22 improvement project or service is determined, the board shall 18-23 impose the assessment against each parcel of land against which an 18-24 assessment may be imposed in the district. With regard to an 18-25 assessment for services, the board may impose an annual assessment 18-26 that may be lower but not higher than the initial assessment. The 18-27 board shall have an assessment roll prepared showing the assessment 19-1 against each property and the board's basis for the assessment. 19-2 The assessment roll shall be filed with the secretary of the board 19-3 or other officer who performs the function of secretary and be open 19-4 for public inspection. 19-5 Sec. 378.122. INTEREST ON ASSESSMENTS; LIEN. (a) An 19-6 assessment bears interest at a rate specified by the board that may 19-7 not exceed the interest rate permitted by Chapter 3, Acts of the 19-8 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's 19-9 Texas Civil Statutes). 19-10 (b) Interest on an assessment between the effective date of 19-11 the order or resolution imposing the assessment and the date the 19-12 first installment and any related penalty is payable shall be added 19-13 to the first installment. The interest or penalties on all unpaid 19-14 installments shall be added to each subsequent installment until 19-15 paid. 19-16 (c) Assessments, reassessments or assessments resulting from 19-17 an addition to or correction of the assessment roll by the 19-18 district, penalties and interest on an assessment or reassessment, 19-19 expenses of collection, and reasonable attorney's fees incurred by 19-20 the district: 19-21 (1) are a first and prior lien against the property 19-22 assessed; 19-23 (2) are superior to any other lien or claim other than 19-24 a lien or claim for county, school district, or municipal ad 19-25 valorem taxes; and 19-26 (3) are the personal liability of and charge against 19-27 the owners of the property even if the owners are not named in the 20-1 assessment proceedings. 20-2 (d) The lien is effective from the date of the resolution of 20-3 the board imposing the assessment until the assessment is paid. 20-4 The board may enforce the lien in the same manner that the board 20-5 may enforce an ad valorem tax lien against real property. 20-6 (e) The owner of any property assessed may pay at any time 20-7 the entire assessment against any lot or parcel with accrued 20-8 interest to the date of the payment. 20-9 Sec. 378.123. SUPPLEMENTAL ASSESSMENTS. After notice and 20-10 hearing in the manner required for original assessments, the board 20-11 may make supplemental assessments to correct omissions or mistakes 20-12 in the assessment: 20-13 (1) relating to the total cost of the improvement 20-14 project or service; or 20-15 (2) covering delinquencies or costs of collection. 20-16 Sec. 378.124. APPEAL. (a) After determination of an 20-17 assessment, a property owner may appeal the assessment to the 20-18 board. The property owner must file a notice of appeal with the 20-19 board not later than the 30th day after the date that the 20-20 assessment is adopted. The board shall set a date to hear the 20-21 appeal. 20-22 (b) The property owner may appeal the board's decision on 20-23 the assessment to a court of competent jurisdiction. The property 20-24 owner must file notice of the appeal with the court of competent 20-25 jurisdiction not later than the 30th day after the date of the 20-26 board's final decision with respect to the assessment. 20-27 (c) Failure to file either of the notices in the time 21-1 required by this section results in a loss of the right to appeal 21-2 the assessment. 21-3 (d) If an assessment against a parcel of land is set aside 21-4 by a court of competent jurisdiction, found excessive by the board, 21-5 or determined to be invalid by the board, the board may make a 21-6 reassessment or new assessment of the parcel. 21-7 Sec. 378.125. APPEAL OF ORDER. If notice has been given as 21-8 required by this subchapter, a person against whom an assessment is 21-9 made by board order may appeal the assessment to a district court 21-10 in the county in which the district is located in the manner 21-11 provided for the appeal of contested cases under Chapter 2001, 21-12 Government Code. Review by the district court is by trial de novo. 21-13 SUBCHAPTER G. EXEMPTIONS 21-14 Sec. 378.141. PUBLIC UTILITIES. The district may not impose 21-15 an assessment on the property, equipment, or facilities of a public 21-16 utility. For purposes of this subsection, "utility" means a person 21-17 that provides to the public gas, electricity, telephone, sewage, or 21-18 water service. 21-19 Sec. 378.142. GOVERNMENTAL ENTITIES; ASSESSMENTS. Payment 21-20 of assessments by municipalities, counties, other political 21-21 subdivisions, and organizations exempt from federal income tax 21-22 under Section 501(c)(3), Internal Revenue Code of 1986, shall be 21-23 established by contract. Municipalities, counties, and other 21-24 political subdivisions may contract with the district under terms 21-25 and conditions those entities consider advisable to provide for the 21-26 payment of assessments. 21-27 SUBCHAPTER H. FUNDS; BONDS 22-1 Sec. 378.161. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND 22-2 SERVICES. (a) The cost of any improvement project or service, 22-3 including interest during construction and costs of issuance of 22-4 bonds, may be paid from general or available funds, assessments, or 22-5 the proceeds of bonds payable from revenues, assessments, grants, 22-6 gifts, contracts, leases, or any combination of those funds. 22-7 (b) During the progress of an improvement project or 22-8 service, the board may issue temporary notes to pay the costs of 22-9 the improvement project or service and issue bonds on completion. 22-10 (c) The costs of more than one improvement project or 22-11 service may be paid from a single issue and sale of bonds without 22-12 other consolidation proceedings before the bond issue. 22-13 Sec. 378.162. BONDS. (a) For the payment of all or part of 22-14 the costs of an improvement project or service, the board may issue 22-15 bonds in one or more series payable from and secured by 22-16 assessments, revenues, grants, gifts, contracts, leases, or any 22-17 combination of those funds. Bonds may be liens on all or part of 22-18 the revenue derived from improvements authorized under this 22-19 chapter, including installment payments of special assessments or 22-20 from any other source pledged to their payment. 22-21 (b) The district shall have the power to issue bonds and 22-22 they shall be approved in the manner set forth in Subchapter J, 22-23 Chapter 375. 22-24 (c) Bonds shall be issued and approved by the board of 22-25 directors of the district without the consent of the county, any 22-26 municipality, or the Texas Natural Resource Conservation 22-27 Commission. 23-1 SUBCHAPTER I. COMPETITIVE BIDDING 23-2 Sec. 378.181. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS 23-3 CONTRACTS. Contracts of the district are subject to the 23-4 competitive bidding requirements of Subchapter I, Chapter 49, Water 23-5 Code. 23-6 Sec. 378.182. SUPERSEDES OTHER LAW. This chapter states the 23-7 required procedures necessary for the district to award contracts 23-8 and supersedes any law or other requirement with respect to award 23-9 of contracts. 23-10 SUBCHAPTER J. BOND ELECTION 23-11 Sec. 378.201. ELECTION TO APPROVE ISSUANCE OF BONDS. (a) 23-12 Bonds secured by assessments may not be issued unless: 23-13 (1) the bonds are approved by a majority of the 23-14 qualified voters in the district voting at an election held for 23-15 that purpose; or 23-16 (2) the district receives a petition requesting the 23-17 assessment and the issuance of bonds which is signed by the owners 23-18 of 50 percent or more of the assessed value of the property in the 23-19 district to be assessed, as determined from the most recent 23-20 certified county property tax rolls. 23-21 (b) Bonds that are not secured by assessments are not 23-22 subject to the requirement of an election and may be issued without 23-23 an election. 23-24 (c) An election required by this section shall be conducted 23-25 in accordance with Chapter 376. 23-26 SUBCHAPTER K. DISSOLUTION 23-27 Sec. 378.221. DISSOLUTION BY BOARD VOTE. Except as provided 24-1 by Section 378.223, the board of a district by majority vote may 24-2 dissolve the district at any time. 24-3 Sec. 378.222. DISSOLUTION BY COUNTY ORDER. Except as 24-4 provided by Section 378.223, the commissioners court of the county 24-5 in which a district is located, by a vote of not less than 24-6 two-thirds, may adopt a resolution dissolving the district. 24-7 Sec. 378.223. LIMITATION. A district may not be dissolved 24-8 if the district has any outstanding bonded indebtedness until that 24-9 bonded indebtedness is repaid or defeased in accordance with the 24-10 order or resolution authorizing the issuance of the bonds. 24-11 SUBCHAPTER L. CONTRACTS WITH DISTRICT 24-12 Sec. 378.241. CONTRACTS WITH DISTRICT. (a) A municipality, 24-13 county, or other political subdivision of the state, without 24-14 further authorization, may contract with the district to implement 24-15 a project of the district or aid and assist the district in 24-16 providing the services authorized under this chapter. A contract 24-17 under this section may: 24-18 (1) be for a period on which the parties agree; 24-19 (2) include terms on which the parties agree; 24-20 (3) be payable from assessments or any other sources 24-21 of revenue that may be available for such purpose; or 24-22 (4) provide that assessments or other revenue 24-23 collected at a district project or from a person using or 24-24 purchasing a commodity or service at a district project may be paid 24-25 or rebated to the district under the terms of the contract. 24-26 (b) The district may enter into a contract, lease, or 24-27 agreement with or make or accept grants and loans to or from: 25-1 (1) the United States, including federal departments 25-2 and agencies; 25-3 (2) the state or a state agency; 25-4 (3) a county, municipality, or other political 25-5 subdivision of the state; 25-6 (4) a public or private corporation; or 25-7 (5) any other person. 25-8 (c) The district may perform all acts necessary for the full 25-9 exercise of the powers vested in the district on terms and 25-10 conditions and for the term the board may determine to be 25-11 advisable. 25-12 SECTION 2. The importance of this legislation and the 25-13 crowded condition of the calendars in both houses create an 25-14 emergency and an imperative public necessity that the 25-15 constitutional rule requiring bills to be read on three several 25-16 days in each house be suspended, and this rule is hereby suspended, 25-17 and that this Act take effect and be in force from and after its 25-18 passage, and it is so enacted.