By Eiland                                             H.B. No. 3738
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     related 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.  SHORT TITLE.  This act may be cited as the
 1-6     Coastal County Conservation District act.
 1-7           SECTION 2.  LEGISLATIVE FINDINGS; PURPOSES.  (a)  The
 1-8     creation of a coastal county conservation district is declared to
 1-9     be essential to the accomplishment of the purposes of Article XVI,
1-10     Section 59, and Article III, Section 52-a, of the Texas
1-11     Constitution and to the accomplishment of the other public purposes
1-12     stated in this act.
1-13           (b)  The creation of each district is necessary to promote,
1-14     develop, encourage, and maintain employment, commerce, economic
1-15     development, and the public welfare in the commercial and
1-16     residential areas of this state bordering on the coastal waters of
1-17     the state.
1-18           (c)  The creation of districts and this act may not be
1-19     interpreted to relieve any county or municipality from providing
1-20     services to an area included in the district or to release the
1-21     county or municipality from the obligation it has to provide
 2-1     services to that area.  A district is created to supplement and not
 2-2     supplant the services of the county or municipality.
 2-3           (d)  All of the land and other property to be included within
 2-4     the boundaries of a district will be benefited by the works and
 2-5     projects that are to be accomplished and the services to be
 2-6     provided by the district under powers conferred by Article XVI,
 2-7     Section 59, and Article III, Section 52-a, of the Texas
 2-8     Constitution and other powers granted under this act.
 2-9           (e)  A district is created to serve a public use and benefit.
2-10           (f)  The creation of each district is essential to further
2-11     the public purposes of development and diversification of the
2-12     economy of the state, the elimination of unemployment and
2-13     underemployment, and the development or expansion of commerce and
2-14     is in the public interest.
2-15           (i)  The creation of each district is necessary to protect
2-16     the state's natural resources through beach, sand dune, and shore
2-17     renourishment, sand dune protection, vegetation, and stabilization,
2-18     and all other forms of beach and shore protection, erosion
2-19     abatement, and reclamation, as well as through the construction and
2-20     maintenance of bulkheads, jetties, breakwaters, seawalls, and all
2-21     other facilities that protect beaches from erosion.
2-22           (j)  The creation of each district is necessary to promote,
2-23     develop and encourage navigation along the state's coastal waters,
2-24     bays and inlets, including the deepening and widening of navigation
2-25     channels.
 3-1           (k)  Each improvement project or service authorized by this
 3-2     act is found and declared to carry out a public purpose.
 3-3           SECTION 3.  CONSTRUCTION OF ACT.  (a)  This act shall be
 3-4     liberally construed in conformity with the findings and purposes in
 3-5     this act.
 3-6           (b)  If any provision of general law is in conflict or
 3-7     inconsistent with this act, this act prevails.  Any general law not
 3-8     in conflict or inconsistent with this act is adopted and
 3-9     incorporated by reference.
3-10           SECTION 4.  DEFINITIONS.  In this act:
3-11                 (1)  "Board" means a board of directors of a district.
3-12                 (2)  "Bond" means any type of interest-bearing
3-13     obligation, including a bond, note, bond anticipation note,
3-14     certificate of participation, lease, contract, or other evidence of
3-15     indebtedness.
3-16                 (3)  "Commission" means the Texas Natural Resources
3-17     Conservation Commission.
3-18                 (4)  "County" means the governing body of an eligible
3-19     coastal county.
3-20                 (5)  "District" means a conservation management
3-21     district created under this act.
3-22                 (6)  "Eligible coastal county" means a county that
3-23     borders the Gulf of Mexico and has a beach parks board.
3-24           SECTION 5.  GOVERNMENTAL AGENCY; TORT CLAIMS.  (a)  A
3-25     district is a governmental agency, a body politic and corporate,
 4-1     and a political subdivision of the state.
 4-2           (b)  A district is a unit of government for purposes of
 4-3     Chapter 101, Civil Practice and Remedies Code (Texas Tort Claims
 4-4     Act), and operations of a district are considered to be essential
 4-5     governmental functions and not proprietary functions for all
 4-6     purposes, including the application of the Texas Tort Claims Act.
 4-7           SECTION 6.  AREAS ELIGIBLE FOR CREATION OF DISTRICT.
 4-8                   A district may be created only in an eligible coastal
 4-9     county.
4-10           SECTION 7.  PETITION.  (a)  Before a district may be created,
4-11     the county must receive a petition requesting creation of the
4-12     district.
4-13           (b)  The petition must be signed by:
4-14                 (1)  the owners of a majority of the assessed value of
4-15     the real property in the proposed district, according to the most
4-16     recent certified county property tax rolls; or
4-17                 (2)  50 persons who own real property in the proposed
4-18     district if, according to the most recent certified county property
4-19     tax rolls, more than 50 persons own real property in the proposed
4-20     district.
4-21           (c)  The petition must:
4-22                 (1)  describe the boundaries of the proposed district
4-23     by metes and bounds or, if there is a recorded map or plat and
4-24     survey of the area, by lot and block number;
4-25                 (2)  state the specific purposes for which the district
 5-1     will be created;
 5-2                 (3)  state the general nature of the work, projects, or
 5-3     services proposed to be provided, the necessity for those services,
 5-4     and the costs as estimated by the persons filing the petition;
 5-5                 (4)  include a name of the district; and
 5-6                 (5)  include a proposed list of initial directors.
 5-7           SECTION 8.  COUNTY HEARING; NOTICE.  The county or a person
 5-8     authorized by the county shall set a date, time, and place for a
 5-9     hearing to consider each petition received.  The county or
5-10     authorized person shall issue a notice of the date, time, and place
5-11     of hearing.
5-12           SECTION 9.  PUBLICATION OF NOTICE.  (a)  The county or
5-13     authorized person shall publish notice of the hearing in a
5-14     newspaper of general circulation in the county in which the
5-15     proposed district is located.  The publication must occur not later
5-16     than the 31st day before the date on which the hearing will be
5-17     held.
5-18           (b)  Not later than the 30th day before the date of the
5-19     hearing, the petitioner shall send the notice of the hearing by
5-20     certified mail, return receipt requested, to each person who owns
5-21     real property in the proposed district, according to the most
5-22     recent certified county property tax rolls, other than a property
5-23     owner who signed the petition for creation.  The tax assessor and
5-24     collector shall certify from the tax rolls ownership of property on
5-25     the date the petition is filed with the county.
 6-1           SECTION 10.  HEARING.  (a)  At a hearing set under this act,
 6-2     the county shall examine the petition to determine its sufficiency.
 6-3     Any interested person may appear before the county and offer
 6-4     testimony.
 6-5           (b)  The county has jurisdiction to determine each issue
 6-6     relating to the creation of the district.
 6-7           (c)  If after the hearing the county finds that the district
 6-8     is feasible and necessary and would be a benefit to all or any part
 6-9     of the land proposed to be included in the district and benefit the
6-10     public, the county shall make that finding and grant the petition.
6-11     The county may create the district over only a portion of the area
6-12     described in the petition.
6-13           SECTION 11.  ORDER; INITIAL DIRECTORS.  If the county grants
6-14     the petition, the county in the order creating the district shall
6-15     appoint the initial directors.
6-16           SECTION 12.  BOUNDARIES.  The boundaries of a district are as
6-17     prescribed by the county order creating the district.  The county
6-18     may issue a subsequent order changing the boundaries of the
6-19     district.
6-20           SECTION 13.  ANNEXATION.  A district may annex land as
6-21     provided by Chapter 49, Water Code, subject to the approval of the
6-22     county.
6-23           SECTION 14.  EXCLUDING TERRITORY.  (a)  At any time during
6-24     which a district does not have outstanding bonds, the board on its
6-25     own motion may call a hearing on the question of the exclusion of
 7-1     land from the district in the manner provided by Chapter 49, Water
 7-2     Code, if the exclusions are practicable, just, or desirable.
 7-3           (b)  The board shall call a hearing on the exclusion of land
 7-4     or other property from the district if a landowner or property
 7-5     owner in the district files with the secretary of the board a
 7-6     written petition requesting the hearing before the issuance of
 7-7     bonds.
 7-8           SECTION 15.  NUMBER OF DIRECTORS; TERMS.  A district is
 7-9     governed by a board of seven directors who serve staggered
7-10     four-year terms.
7-11           SECTION 16.  TERMS OF INITIAL DIRECTORS.  The initial
7-12     directors shall be divided into one group of four directors and one
7-13     group of three directors; the group of four directors serves four-
7-14     year terms, and the group of three directors serves two-year terms.
7-15     The grouping of initial directors and terms for the directors in
7-16     each group shall be determined by the county.
7-17           SECTION 17.  QUALIFICATIONS OF DIRECTOR.  To be qualified to
7-18     serve as a director, a person must be at least 18 years old and:
7-19                 (1)  a resident of the district; or
7-20                 (2)  an owner of property in the district;
7-21           SECTION 18.  APPOINTMENT OF DIRECTORS.  (a)  The initial and
7-22     each succeeding members of the board of directors shall be
7-23     appointed by the county.
7-24           (b)  Board members may serve successive terms.
7-25           SECTION 19.  REMOVAL OF DIRECTOR.  The county after notice
 8-1     and hearing may remove a director for misconduct or failure to
 8-2     carry out the director's duties on petition by a majority of the
 8-3     remaining directors.
 8-4           SECTION 20.  BOARD VACANCY.  A vacancy in the office of
 8-5     director shall be filled by the remaining members of the board for
 8-6     the unexpired term.
 8-7           SECTION 21.  DIRECTOR'S BOND AND OATH.  (a)  As soon as
 8-8     practicable after a director is appointed, the director shall
 8-9     execute a $10,000 bond payable to the district and conditioned on
8-10     the faithful performance of the director's duties.
8-11           (b)  Each director's bond must be approved by the board, and
8-12     each director shall take the oath of office prescribed by the
8-13     constitution for public officers.
8-14           (c)  The bond and oath shall be filed with the district and
8-15     retained in its records.
8-16           SECTION 22.  OFFICERS.  After directors are appointed and
8-17     have qualified by executing a bond and taking the oath, they shall
8-18     organize by electing a president, a vice-president, a secretary,
8-19     and any other officers the board considers necessary.
8-20           SECTION 23.  COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
8-21     EXPENSES.  In accordance with Section 49.060, Water Code, a
8-22     director is entitled to compensation for service on the board and
8-23     is entitled to be reimbursed for necessary expenses incurred in
8-24     carrying out the duties and responsibilities of a director.
8-25           SECTION 24.  QUORUM.  One-half of the directors constitutes a
 9-1     quorum, and a concurrence of a majority of a quorum of directors is
 9-2     required for any official action of the district.
 9-3           SECTION 25.  GENERAL POWERS OF DISTRICT.  (a)  A district has
 9-4     the rights, powers, privileges, authority, and functions conferred
 9-5     by the general law of this state applicable to conservation and
 9-6     reclamation districts created under Article XVI, Section 59, of the
 9-7     Texas Constitution, including those conferred by Chapter 54, Water
 9-8     Code, with respect to the purposes for which it is created.
 9-9           (b)  The district may contract and manage its affairs and
9-10     funds for any corporate purpose in accordance with Chapter 54,
9-11     Water Code.
9-12           SECTION 26.  SPECIFIC POWERS.  (a)  A district has the powers
9-13     necessary or convenient to carry out and effect the purposes and
9-14     provisions of this act, including the powers granted in this
9-15     section.
9-16           (b)  A district has perpetual succession.
9-17           (c)  A district may sue and be sued in courts of competent
9-18     jurisdiction, may institute and prosecute suits without giving
9-19     security for costs, and may appeal from a judgment without giving
9-20     supersedeas or cost bond.
9-21           (d)  A district may incur liabilities, borrow money on terms
9-22     and conditions the board determines, and issue notes, bonds, or
9-23     other obligations.
9-24           (e)  A district may acquire by grant, purchase, gift, devise,
9-25     lease, or otherwise, and may hold, use, sell, lease, or dispose of
 10-1    real and personal property, and licenses, patents, rights, and
 10-2    interests necessary, convenient, or useful for the full exercise of
 10-3    any of its powers under this act.
 10-4          (f)  A district may acquire, construct, complete, develop,
 10-5    own, operate, and maintain permanent improvements and provide
 10-6    services inside and outside its boundaries.
 10-7          (g)  A district may enter into agreements with a person or
 10-8    entity, public or private, for the joint use of facilities,
 10-9    installations, and property.
10-10          (h)  A district may enter contracts, leases, and agreements
10-11    with and accept grants and loans from the United States and its
10-12    departments and agencies, the state and its agencies, counties,
10-13    municipalities, and political subdivisions, public or private
10-14    corporations, and other persons and may perform all acts necessary
10-15    for the full exercise of the powers vested in it on terms and
10-16    conditions and for the term the board may determine to be
10-17    advisable.
10-18          (i)  A district may acquire property under conditional sales
10-19    contracts, leases, equipment trust certificates, or any other form
10-20    of contract or  trust agreement.
10-21          (j)  A district may sell, lease, convey, or otherwise dispose
10-22    of any of its rights, interests, or properties that are not needed
10-23    for or, in the case of leases, that are not inconsistent with the
10-24    efficient operation and maintenance of the district's improvements.
10-25    A district may sell, lease, or otherwise dispose of any surplus
 11-1    material or personal or real property not needed for its
 11-2    requirements or for the purpose of carrying out its powers under
 11-3    this act.
 11-4          (k)  A district may procure and pay premiums to insurers for
 11-5    insurance of any type in amounts considered necessary or advisable
 11-6    by the board.
 11-7          (l)  A district may do anything necessary, convenient, or
 11-8    desirable to carry out the powers expressly granted or implied by
 11-9    this act.
11-10          SECTION 27.  USE AND ALTERATION OF LAND AND PUBLIC WAYS.  (a)
11-11    The district is given the authority to construct all improvements
11-12    and facilities necessary to accomplish the purposes for which it
11-13    was created on lands, whether publicly or privately owned.
11-14          (b)  Before constructing an improvement or facility on lands
11-15    owned by the county, the state, a municipality, or another
11-16    political subdivision, a district must obtain approval from the
11-17    relevant government entity of the plans and specifications of such
11-18    improvement or facility.
11-19          (c)  If a district, in exercising any of the powers conferred
11-20    by this act, requires the relocation, adjustment, raising,
11-21    lowering, rerouting, or changing the grade of or altering the
11-22    construction of any street, alley, highway, overpass, underpass, or
11-23    road, any railroad track, bridge, or other facilities or property,
11-24    any electric lines, conduits, or other facilities or property, any
11-25    telephone or telegraph lines, conduits, or other facilities or
 12-1    property, any gas transmission or distribution pipes, pipelines,
 12-2    mains, or other facilities or property, any water, sanitary sewer
 12-3    or storm sewer pipes, pipelines, mains, or other facilities, or
 12-4    property, any cable television lines, cables, conduits, or other
 12-5    facilities or property, or any other pipelines and any facilities
 12-6    or properties relating to those pipelines, those relocations,
 12-7    adjustments, raising, lowering, rerouting, or changing of grade, or
 12-8    altering of construction must be accomplished at the sole cost and
 12-9    expense of the district, and damages that are suffered by the
12-10    owners of the property or facilities shall be borne by the
12-11    district.
12-12          SECTION 28.  NO EMINENT DOMAIN POWER.  A district may not
12-13    exercise the power of eminent domain; however, the county may
12-14    exercise its power of eminent domain to implement a district
12-15    facility or improvement.
12-16          SECTION 29.  MANAGEMENT BY BOARD OF DIRECTORS.  The
12-17    responsibility for the management, operation, and control of the
12-18    property belonging to a district is vested in the board.
12-19          SECTION 30.  SPECIFIC POWERS AND DUTIES OF BOARD.  (a)  The
12-20    board may:
12-21                (1)  employ all persons, firms, partnerships, or
12-22    corporations considered necessary by the board for the conduct of
12-23    the affairs of the district, including a general manager,
12-24    bookkeepers, auditors, engineers, attorneys, financial advisers,
12-25    peace or traffic control officers, architects, and operating or
 13-1    management companies and prescribe the duties, tenure, and
 13-2    compensation of each;
 13-3                (2)  dismiss employees;
 13-4                (3)  adopt a seal for the district;
 13-5                (4)  invest funds of the district in any investments
 13-6    authorized by Subchapter A, Chapter 2256, Government Code and
 13-7    provide, by resolution, that an authorized representative manage
 13-8    the district's funds and invest and reinvest the funds of the
 13-9    district on terms the board considers advisable;
13-10                (5)  establish a fiscal year for the district;
13-11                (6)  establish a complete system of accounts for the
13-12    district and each year shall have prepared an audit of the
13-13    district's affairs, which shall be open to public inspection, by an
13-14    independent certified public accountant or a firm of independent
13-15    certified public accountants; and
13-16                (7)  designate one or more banks to serve as the
13-17    depository bank or banks.
13-18          (b)  Funds of a district shall be deposited in the depository
13-19    bank or banks unless otherwise required by orders or resolutions
13-20    authorizing the issuance of the district's bonds or notes.  To the
13-21    extent that funds in the depository bank or banks are not insured
13-22    by the Federal Deposit Insurance Corporation, they must be secured
13-23    in the manner provided by law for the security of funds of
13-24    counties.  The board by resolution may authorize a designated
13-25    representative to supervise the substitution of securities pledged
 14-1    to secure the district's funds.
 14-2          (c)  The board may adopt and enforce reasonable rules and
 14-3    regulations governing the administration of the district and its
 14-4    programs and projects.
 14-5          (d)  The name of the district may be established or changed
 14-6    by resolution of the board.
 14-7          SECTION 31.  HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT.
 14-8    (a)  The board may appoint a hearings examiner to conduct any
 14-9    hearing called by the board, including a hearing required by
14-10    Chapter 395, Local Government Code.  The hearings examiner may be
14-11    an employee of the district or a member of the district's board.
14-12          (b)  The hearing shall be conducted in accordance with
14-13    Chapter 2001, Government Code.
14-14          SECTION 32.  GENERAL POWERS RELATING TO ASSESSMENTS.  (a)
14-15    The board may levy and collect an assessment for any purpose
14-16    authorized by this act.
14-17          (b)  The board of a district may undertake improvement
14-18    projects and services that confer a special benefit on all or a
14-19    definable part of the district.  The board may levy and collect
14-20    special assessments on property in that area, based on the benefit
14-21    conferred by the improvement project or services, to pay all or
14-22    part of the cost of the project and services.  If the board
14-23    determines that there is a benefit to the district, the district
14-24    may provide improvements and services to an area outside the
14-25    boundaries of the district.
 15-1          SECTION 33.  SPECIFIC POWERS RELATING TO ASSESSMENTS.  (a)
 15-2    An improvement project or services provided by the district may
 15-3    include the construction, acquisition, improvement, relocation,
 15-4    operation, maintenance, or provision of:
 15-5                (1)  crosswalks; seawalls; sand dune, beach, and shore
 15-6    stabilization and renourishment; sand dune construction,
 15-7    vegetation, protection, and stabilization; beach and shore erosion
 15-8    abatement; bulkheads, jetties, and breakwaters; geotubes; and
 15-9    navigation projects, including the deepening and widening of
15-10    navigation channels; and other similar improvements; and
15-11                (2)  expenses incurred in the establishment,
15-12    administration, maintenance, and operation of the district or any
15-13    of its improvements, projects, or services.
15-14          SECTION 34.  PROPOSED ASSESSMENTS.  Services or improvement
15-15    projects may be financed under this act after a hearing notice
15-16    given as required by this act and a public hearing by the board on
15-17    the advisability of the improvements and services and the proposed
15-18    assessments.
15-19          SECTION 35.  PETITION REQUIRED.  The board may not finance
15-20    services and improvement projects under this act unless a written
15-21    petition has been filed with the board requesting those
15-22    improvements or services signed by at least 25 persons who own real
15-23    property in the district if, according to the most recent certified
15-24    property tax rolls, more than 25 persons own real property in the
15-25    district.
 16-1          SECTION 36.  ASSESSMENT ELECTION.  (a)  Assessments may not
 16-2    be levied unless approved by a majority of the qualified voters in
 16-3    the district voting at an election held for that purpose unless a
 16-4    written petition has been filed with the board requesting the
 16-5    improvements or services which is signed by the owners of 50
 16-6    percent or more of the assessed value of the property in the
 16-7    district to be assessed as determined from the most recent
 16-8    certified county property tax rolls.
 16-9          (b)  Elections required by this section shall be conducted in
16-10    accordance with Chapter 376, Local Government Code.
16-11          SECTION 37.  NOTICE OF HEARING.  (a)  Notice of the hearing
16-12    shall be given in a newspaper with general circulation in the
16-13    county in which the district is located.  The final publication
16-14    must be made not later than the 30th day before the date of the
16-15    hearing.
16-16          (b)  The notice must include:
16-17                (1)  the time and place of the hearing;
16-18                (2)  the general nature of the proposed improvement
16-19    project or services;
16-20                (3)  the estimated cost of the improvement, including
16-21    interest during construction and associated financing costs; and
16-22                (4)  the proposed method of assessment.
16-23          (c)  Written notice containing the information required by
16-24    this section shall be mailed by certified mail, return receipt
16-25    requested, not later than the 30th day before the date of the
 17-1    hearing.  The notice shall be mailed to each property owner in the
 17-2    district who will be subject to assessment at the current address
 17-3    of the property to be assessed as reflected on the tax rolls.
 17-4          SECTION 38.  CONCLUSION OF HEARING; FINDINGS.  (a)  A hearing
 17-5    on the services or improvement project, whether conducted by the
 17-6    board or a hearings examiner, may be adjourned from time to time.
 17-7          (b)  At the conclusion of the hearing, the board shall make
 17-8    findings by resolution or order relating to the advisability of the
 17-9    improvement project or services, the nature of the improvement
17-10    project or services, the estimated cost, the area benefited, the
17-11    method of assessment, and the method and time for payment of the
17-12    assessment.
17-13          (c)  If a hearings examiner is appointed to conduct the
17-14    hearing, after conclusion of the hearing, the hearings examiner
17-15    shall file with the board a report stating the examiner's findings
17-16    and conclusions.
17-17          SECTION 39.  AREA TO BE ASSESSED.  (a)  The area of the
17-18    district to be assessed according to the findings of the board may
17-19    be the entire district or any part of the district and may be less
17-20    than the area proposed in the notice of the hearing.
17-21          (b)  Except as provided by Subsection (c), the area to be
17-22    assessed may not include property that is not within the district
17-23    boundaries at the time of the hearing unless there is an additional
17-24    hearing, preceded by the required notice.
17-25          (c)  The owner of improvements constructed or land annexed to
 18-1    the district after the district has imposed assessments may waive
 18-2    the right to notice and an assessment hearing and may agree to the
 18-3    imposition and payment of assessments at an agreed rate for
 18-4    improvements constructed or land annexed to the district.
 18-5          SECTION 40.  OBJECTIONS; LEVY OF ASSESSMENT.  (a)  At a
 18-6    hearing on proposed assessments, at any adjournment of the hearing,
 18-7    or after consideration of the hearings examiner's report, the board
 18-8    shall hear and rule on all objections to each proposed assessment.
 18-9          (b)  The board may amend proposed assessments for any parcel.
18-10          (c)  After all objections have been heard and action has been
18-11    taken with regard to those objections, the board, by order or
18-12    resolution, shall levy the assessments as special assessments on
18-13    the property and shall specify the method of payment of the
18-14    assessments and may provide that those assessments be paid in
18-15    periodic installments, including interest.
18-16          (d)  Periodic installments must be in amounts sufficient to
18-17    meet annual costs for services and improvements as provided by this
18-18    act and continue for the number of years required to retire
18-19    indebtedness or pay for the services to be rendered.  The board may
18-20    provide interest charges or penalties for failure to make timely
18-21    payment and also may levy an amount to cover delinquencies and
18-22    expenses of collection.
18-23          (e)  If assessments are levied for more than one service or
18-24    improvement project, the board may provide that assessments
18-25    collected for one service or improvement project may be borrowed to
 19-1    be used for another service or improvement project.
 19-2          (f)  The board shall establish a procedure for the
 19-3    distribution or use of any assessments in excess of those necessary
 19-4    to finance the services or improvement project for which those
 19-5    assessments were collected.
 19-6          SECTION 41.  APPORTIONMENT OF COST.  The portion of the cost
 19-7    of an improvement project or services to be assessed against the
 19-8    property in the district shall be apportioned by the board based on
 19-9    the special benefits accruing to the property because of the
19-10    improvement project or services.  The cost may be assessed:
19-11                (1)  equally by front foot or by square foot of land
19-12    area against all property in the district;
19-13                (2)  against property according to the value of the
19-14    property as determined by the board, with or without regard to
19-15    structures or other improvements on the  property; or
19-16                (3)  on any other reasonable assessment plan that
19-17    results in imposing fair and equitable shares of the cost on
19-18    property similarly benefited.
19-19          SECTION 42.  ASSESSMENT ROLL.  If the total cost of an
19-20    improvement project or services is determined, the board shall levy
19-21    the assessments against each parcel of land against which an
19-22    assessment may be levied in the district.  With regard to an
19-23    assessment for services, the board may levy an annual assessment
19-24    that may be lower but not higher than the initial assessment.  The
19-25    board shall have an assessment roll prepared showing the
 20-1    assessments against each property and the board's basis for the
 20-2    assessment.  The assessment roll shall be filed with the secretary
 20-3    of the board or other officer who performs the function of
 20-4    secretary and be open for public inspection.
 20-5          SECTION 43.  INTEREST ON ASSESSMENTS; LIEN.  (a)  Assessments
 20-6    bear interest at a rate specified by the board that may not exceed
 20-7    the interest rate permitted by Chapter 3, Acts of the 61st
 20-8    Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
 20-9    Civil Statutes).
20-10          (b)  Interest on an assessment between the effective date of
20-11    the order or resolution levying the assessment and the date the
20-12    first installment and any related penalty is payable shall be added
20-13    to the first installment.  The interest or penalties on all unpaid
20-14    installments shall be added to each subsequent installment until
20-15    paid.
20-16          (c)  Assessments, reassessments or assessments resulting from
20-17    an addition to or correction of the assessment roll by the
20-18    district, penalties and interest on an assessment or reassessment,
20-19    expenses of collection, and reasonable attorneys' fees incurred by
20-20    the district:
20-21                (1)  are a first and prior lien against the property
20-22    assessed;
20-23                (2)  are superior to any other lien or claim other than
20-24    a lien or claim for county, school district, or municipal ad
20-25    valorem taxes; and
 21-1                (3)  are the personal liability of and charge against
 21-2    the owners of the property even if the owners are not named in the
 21-3    assessment proceedings.
 21-4          (d)  The lien is effective from the date of the resolution of
 21-5    the board levying the assessment until the assessment is paid.  the
 21-6    board may enforce the lien in the same manner that the board may
 21-7    enforce an ad valorem tax lien against real property.
 21-8          (e)  The owner of any property assessed may pay at any time
 21-9    the entire assessment against any lot or parcel with accrued
21-10    interest to the date of the payment.
21-11          SECTION 44.  SUPPLEMENTAL ASSESSMENTS.  After notice and
21-12    hearing in the manner required for original assessments, the board
21-13    may make supplemental assessments to correct omissions or mistakes
21-14    in the assessment:
21-15                (1)  relating to the total cost of the improvement
21-16    project or services; or
21-17                (2)  covering delinquencies or costs of collection.
21-18          SECTION 45.  APPEAL.  (a)  After determination of an
21-19    assessment, a property owner may appeal the assessment to the
21-20    board.  The property owner must file a notice of appeal with the
21-21    board not later than the 30th day after the date that the
21-22    assessment is adopted.  The board shall set a date to hear the
21-23    appeal.
21-24          (b)  The property owner may appeal the board's decision on
21-25    the assessment to a court of competent jurisdiction.  The property
 22-1    owner must file notice of the appeal with the court of competent
 22-2    jurisdiction not later than the 30th day after the date of the
 22-3    board's final decision with respect to the assessment.
 22-4          (c)  Failure to file either of the notices in the time
 22-5    required by this section results in a loss of the right to appeal
 22-6    the assessment.
 22-7          (d)  If an assessment against a parcel of land is set aside
 22-8    by a court of competent jurisdiction, found excessive by the board,
 22-9    or determined to be invalid by the board, the board may make a
22-10    reassessment or new assessment of the parcel.
22-11          SECTION 46.  APPEAL OF ORDER.  If notice has been given as
22-12    required by this act, a person against whom an assessment is made
22-13    by board order may appeal the assessment to a district court in the
22-14    county in which the district is located in the manner provided for
22-15    the appeal of contested cases under Chapter 2001, Government Code.
22-16    Review by the district court is by trial de novo.
22-17          SECTION 47.  PUBLIC UTILITIES.  The district may not impose
22-18    an assessment on the property, equipment, or facilities of a public
22-19    utility, as defined by Section 2.0011 or 3.007, Public Utility
22-20    Regulatory Act of 1995 (Article 144C-O, Vernon's Texas Civil
22-21    Statutes).
22-22          SECTION 48.  GOVERNMENTAL ENTITIES; ASSESSMENTS.  Payment of
22-23    assessments by municipalities, counties, other political
22-24    subdivisions, and organizations exempt from federal income tax
22-25    under Section 501(c)(3), Internal Revenue Code of 1986, shall be
 23-1    established by contract. Municipalities, counties, and other
 23-2    political subdivisions may contract with the district under terms
 23-3    and conditions those entities consider advisable to provide for the
 23-4    payment of assessments.
 23-5          SECTION 49.  FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND
 23-6    SERVICES.  (a)  The cost of any improvement project or services,
 23-7    including interest during construction and costs of issuance of
 23-8    bonds, may be paid from general or available funds, assessments, or
 23-9    the proceeds of bonds payable from revenues, assessments, grants,
23-10    gifts, contracts, leases, or any combination of those funds.
23-11          (b)  During the progress of an improvement project or
23-12    services, the board may issue temporary notes to pay the costs of
23-13    the improvement project or services and issue bonds on completion.
23-14          (c)  The costs of more than one improvement project or
23-15    service may be paid from a single issue and sale of bonds without
23-16    other consolidation proceedings before the bond issue.
23-17          SECTION 50.  BONDS.  (a)  For the payment of all or part of
23-18    the costs of an improvement project or services, the board may
23-19    issue bonds in one or more series payable from and secured by
23-20    assessments, revenues, grants, gifts, contracts, leases, or any
23-21    combination of those funds.  Bonds may be liens on all or part of
23-22    the revenue derived from improvements authorized under this act,
23-23    including installment payments of special assessments or from any
23-24    other source pledged to their payment.
23-25          (b)  The district shall have the power to issue bonds and
 24-1    they shall be approved in the manner set forth in Subchapter J,
 24-2    Chapter 375, Local Government Code.
 24-3          (c)  Bonds shall be issued and approved by the board of
 24-4    directors of the district without the consent of the county, any
 24-5    municipality, or the Texas Natural Resources Conservation
 24-6    Commission.
 24-7          SECTION 51.  COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS
 24-8    CONTRACTS.  Contracts of the district are subject to the
 24-9    competitive bidding requirements of Chapter 49, Water Code.
24-10          SECTION 52.  SUPERSEDES OTHER LAW.  This act states the
24-11    required procedures necessary for the district to award contracts
24-12    and supersedes any law or other requirement with respect to award
24-13    of contracts.
24-14          SECTION 53.  ELECTION TO APPROVE ISSUANCE OF BONDS.  (a)
24-15    Bonds secured by assessments may not be issued unless:
24-16                (1)  approved by a majority of the qualified voters in
24-17    the district voting at an election held for that purpose; or
24-18                (2)  the district received a petition requesting the
24-19    assessment and the issuance of bonds which is signed by the owners
24-20    of 50 percent or more of the assessed value of the property in the
24-21    district to be assessed as determined from the most recent
24-22    certified county property tax rolls.
24-23          (b)  Bonds not secured by assessments are not subject to the
24-24    requirement of an election and may be issued without an election.
24-25          (c)  An election required by this section shall be conducted
 25-1    in accordance with Chapter 376, Local Government Code.
 25-2          SECTION 54.  DISSOLUTION BY BOARD VOTE.  Except as limited by
 25-3    this act, the board of a district by majority vote may dissolve the
 25-4    district at any time.
 25-5          SECTION 55.  DISSOLUTION BY  COUNTY ORDER.  (a)  Except as
 25-6    limited by this act, the county in which a district is located, by
 25-7    a vote of not less than two-thirds, may adopt a resolution
 25-8    dissolving the district.
 25-9          SECTION 56.  LIMITATION.  A district may not be dissolved by
25-10    its board or by a county if the district has any outstanding bonded
25-11    indebtedness until that bonded indebtedness has been repaid or
25-12    defeased in accordance with the order or resolution authorizing the
25-13    issuance of the bonds.
25-14          SECTION 57.  CONTRACTS WITH DISTRICT.  (a)  A municipality,
25-15    county, or any other political subdivision of the state, without
25-16    further authorization, may contract with the district to implement
25-17    a project of the district or aid and assist the district in
25-18    providing the services authorized under this act.  A contract under
25-19    this section may:
25-20                (1)  be for a period on which the parties agree;
25-21                (2)  include terms on which the parties agree;
25-22                (3)  be payable from assessments or any other sources
25-23    of revenue that may be available for such purpose; or
25-24                (4)  provide that assessments or other revenue
25-25    collected at a district project or from a person using or
 26-1    purchasing a commodity or service at a district project may be paid
 26-2    or rebated to the district under the terms of the contract.
 26-3          (c)  The district may enter into a contract, lease, or
 26-4    agreement with or make or accept grants and loans to or from:
 26-5                (1)  the United States, including federal departments
 26-6    and agencies;     
 26-7                (2)  the state or a state agency;
 26-8                (3)  a county, municipality, or other political
 26-9    subdivision of the state;
26-10                (4)  a public or private corporation; and
26-11                (5)  any other person.
26-12          (d)  The district may perform all acts necessary for the full
26-13    exercise of the powers vested in the district on terms and
26-14    conditions and for the term the board may determine to be
26-15    advisable.
26-16          SECTION 58.  EMERGENCY.  The importance of this legislation
26-17    and the crowded condition of the calendars in both houses create an
26-18    emergency and an imperative public necessity that the
26-19    constitutional rule requiring bills to be read on three several
26-20    days in each house be suspended, and this rule is hereby suspended,
26-21    and that this act take effect and be in force from and after its
26-22    passage and it is so enacted.