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.