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.