1-1     By:  Zbranek (Senate Sponsor - Bernsen)               H.B. No. 3845
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on Natural
 1-4     Resources; May 14, 1999, reported favorably by the following vote:
 1-5     Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation of the Southeast Texas Agricultural
 1-9     Development District; granting the right to issue bonds.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subtitle B, Title 12, Local Government Code, is
1-12     amended by adding Chapter 384 to read as follows:
1-13       CHAPTER 384.  SOUTHEAST TEXAS AGRICULTURAL DEVELOPMENT DISTRICT
1-14                      SUBCHAPTER A.  GENERAL PROVISIONS
1-15           Sec. 384.001.  DEFINITIONS.  In this chapter:
1-16                 (1)  "Assessment" includes a reassessment or
1-17     supplemental assessment.
1-18                 (2)  "Board" means the board of directors of the
1-19     district.
1-20                 (3)  "Bond" means an obligation issued by the district
1-21     under this chapter, including a bond, certificate, note, or other
1-22     evidence of indebtedness.
1-23                 (4)  "County" means Chambers County, Texas.
1-24                 (5)  "Director" means a board member.
1-25                 (6)  "District" means the Southeast Texas Agricultural
1-26     Development District.
1-27                 (7)  "Project" means an agricultural project designated
1-28     under Section 384.045.
1-29              (Sections 384.002-384.020 reserved for expansion)
1-30                     SUBCHAPTER B.  CREATION OF DISTRICT
1-31           Sec. 384.021.  CREATION.  (a)  The Southeast Texas
1-32     Agricultural Development District is created as a special district.
1-33           (b)  The board by resolution may change the district's name.
1-34           Sec. 384.022.  PURPOSE AND NATURE OF DISTRICT.  (a)  The
1-35     district is created as a conservation and reclamation district
1-36     under Section 59, Article XVI, Texas Constitution, to:
1-37                 (1)  conserve and develop the natural resources of this
1-38     state, including certain agricultural resources;
1-39                 (2)  conserve the soil for certain agricultural uses;
1-40                 (3)  reclaim or drain overflowed lands or provide
1-41     necessary irrigation for certain natural agricultural resources;
1-42     and
1-43                 (4)  provide credit, grants, or other things of value
1-44     to aid persons as provided by Section 52(a), Article III, Texas
1-45     Constitution.
1-46           (b)  The district exercises public and essential governmental
1-47     functions.
1-48           (c)  Chapter 49, Water Code, does not apply to the district.
1-49           (d)  The creation of the district is a program essential to
1-50     accomplish the purposes of Section 52-a, Article III, Texas
1-51     Constitution, and other public purposes stated in this chapter.
1-52           Sec. 384.023.  BOUNDARIES.  The district includes all of the
1-53     territory of Chambers County that is east of the center line of the
1-54     Trinity River and north of the center line of the Gulf Intracoastal
1-55     Waterway, save and except all property located within the city
1-56     limits of an incorporated municipality as of January 1, 1999.
1-57           Sec. 384.024.  FINDING RELATING TO BOUNDARIES.  The
1-58     legislature finds that the boundaries of the district form a
1-59     closure.  If a mistake is made in the description of the boundaries
1-60     or in copying the description in the legislative process, it does
1-61     not affect the district's:
1-62                 (1)  organization, existence, or validity;
1-63                 (2)  right to issue any type of bond for the purposes
1-64     for which the district is created or to pay the principal of and
 2-1     interest on a bond;
 2-2                 (3)  right to impose or collect an assessment; or
 2-3                 (4)  legality or operation.
 2-4              (Sections 384.025-384.040 reserved for expansion)
 2-5                  SUBCHAPTER C.  DISTRICT POWERS AND DUTIES
 2-6           Sec. 384.041.  GENERAL POWERS AND DUTIES.  (a)  The district
 2-7     has the powers and duties that are prescribed by this chapter and
 2-8     that are necessary or desirable to carry out a power or duty
 2-9     expressly or implicitly granted under this chapter.
2-10           (b)  The district may perform acts necessary to carry out the
2-11     purposes of this chapter.
2-12           (c)  The district may not impose an ad valorem tax.
2-13           Sec. 384.042.  ECONOMIC DEVELOPMENT.  (a)  The district may
2-14     encourage state economic development as provided by this chapter,
2-15     including by making a loan or grant of public money for the
2-16     purposes of this chapter.
2-17           (b)  The district may encourage the economic development of
2-18     the area in which the district is located by:
2-19                 (1)  fostering the growth of enterprises based on
2-20     certain types of agriculture;
2-21                 (2)  stimulating innovation in certain agricultural
2-22     enterprises;
2-23                 (3)  seeking to eliminate unemployment or
2-24     underemployment in the state; and
2-25                 (4)  developing or expanding transportation resources.
2-26           Sec. 384.043.  AGRICULTURAL DEVELOPMENT.  The district may:
2-27                 (1)  promote all agricultural enterprises, facilities,
2-28     and services of the district; and
2-29                 (2)  encourage the maintenance and conservation of soil
2-30     in the district.
2-31           Sec. 384.044.  AGRICULTURAL DEVELOPMENT.  The district may
2-32     design, construct, and operate a sugar mill or other agricultural
2-33     enterprise.  The district may acquire property necessary for a
2-34     sugar mill or other agricultural enterprise, including vehicles,
2-35     farm equipment, and other machinery and related facilities for the
2-36     harvesting, processing, storage, distribution, and transportation
2-37     of sugar cane or other agricultural products or by-products.
2-38           Sec. 384.045.  AGRICULTURAL PROJECTS.  (a)  The district may
2-39     designate as an agricultural project a project that relates to the
2-40     development of agriculture in the district and surrounding areas
2-41     and the preservation and conservation of the soil in the district
2-42     for agricultural purposes.
2-43           (b)  A project designated under Subsection (a) is for a
2-44     public purpose.
2-45           (c)  The cost of a project, including interest during
2-46     construction and costs of issuance of bonds, may be paid from any
2-47     source.
2-48           (d)  The implementation of a project is a governmental
2-49     function or service for purposes of Chapter 791, Government Code.
2-50           Sec. 384.046.  TRANSPORTATION DEVELOPMENT; NAVIGATION
2-51     DISTRICT; LIMIT ON POWER.  (a)  The district may encourage the
2-52     transportation and distribution of the district's agricultural
2-53     products through the development and operation of transportation
2-54     structures necessary to further the purposes of this chapter,
2-55     including railroads and private roads.
2-56           (b)  The district may cooperate and contract with the
2-57     Chambers-Liberty Counties Navigation District on any area of mutual
2-58     interest.
2-59           (c)  The authority granted to the district  under this
2-60     chapter is not intended to duplicate the authority granted to the
2-61     Chambers-Liberty Counties Navigation District or to limit the
2-62     authority or jurisdiction of the navigation district.  To the
2-63     extent the laws of this chapter conflict with the laws of that
2-64     navigation district, the laws of the navigation district control
2-65     over this chapter.
2-66           Sec. 384.047.  AGREEMENTS; DONATIONS.  (a)  The district may:
2-67                 (1)  make an agreement with any person for any district
2-68     purpose, including an agreement:
2-69                       (A)  to operate or maintain an agricultural
 3-1     enterprise under Sections 384.043 and 384.044; or
 3-2                       (B)  with a municipality or county to provide law
 3-3     enforcement service in the district on a fee basis; or
 3-4                 (2)  accept a donation, grant, or loan from any person.
 3-5           (b)  The district, county, and any other political
 3-6     subdivision, without further authorization, may contract to
 3-7     implement a district project or assist the district in providing a
 3-8     service authorized by this chapter.  A contract under this
 3-9     subsection may provide:
3-10                 (1)  for payment from a district assessment or other
3-11     revenue; or
3-12                 (2)  that an assessment or other revenue collected from
3-13     a district project, or from a person using or purchasing a
3-14     commodity or service from a district project, may be paid or
3-15     rebated to the district.
3-16           Sec. 384.048.  PROPERTY.  The district may acquire or dispose
3-17     of property in any manner, including by:
3-18                 (1)  conveyance;
3-19                 (2)  mortgage; or
3-20                 (3)  lease, as lessor or lessee.
3-21           Sec. 384.049.  EMINENT DOMAIN.  The district may not exercise
3-22     the power of eminent domain.
3-23           Sec. 384.050.  RESEARCH.  The district may conduct or pay for
3-24     research for agricultural purposes.
3-25           Sec. 384.051.  SUITS.  (a)  The district may sue and be sued.
3-26           (b)  In a suit against the district, process may be served on
3-27     a director or registered agent.
3-28           (c)  The district may not be required to give a bond on an
3-29     appeal or writ of error in a civil case that the district is
3-30     prosecuting or defending.
3-31           (d)  The district may indemnify a director or district
3-32     employee or a former director or district employee for reasonable
3-33     expenses and costs, including attorney's fees, incurred by that
3-34     person in connection with a claim asserted against that person if:
3-35                 (1)  the claim relates to an act or omission of the
3-36     person when acting in the scope of the person's board membership or
3-37     district employment; and
3-38                 (2)  the person has not been found liable or guilty on
3-39     the claim.
3-40           Sec. 384.052.  ANNEXATION; EXCLUDING TERRITORY.  (a)  The
3-41     district may annex land as provided by Section 49.301 or 49.302,
3-42     Water Code, except that the references in those sections related to
3-43     taxes do not apply.  As provided by those sections, the district
3-44     may annex land that is not adjacent or contiguous to the district.
3-45           (b)  The board on its own motion may call a hearing on the
3-46     question of the exclusion of land from the district in the manner
3-47     provided by Section 49.304 or 49.307, Water Code, if:
3-48                 (1)  the district does not have outstanding bonds; and
3-49                 (2)  the proposed exclusion is practicable, just, or
3-50     desirable.
3-51           (c)  The board shall call a hearing on the exclusion of land
3-52     or other property from the district in the manner provided by
3-53     Section 49.304 or 49.307, Water Code, if a property owner in the
3-54     district files with the board secretary a written petition
3-55     requesting the hearing before the issuance of a bond.
3-56           Sec. 384.053.  POWERS BEYOND DISTRICT TERRITORY.  The
3-57     district may exercise any of its powers outside the boundaries of
3-58     the district if the board determines that there is a benefit to the
3-59     district in exercising that power.
3-60           Sec. 384.054.  OFFICIAL SEAL.  The district may adopt or
3-61     alter an official seal for the district.
3-62           Sec. 384.055.  LIMIT ON DISTRICT POWERS.  The district may
3-63     not exercise a power unless it furthers the purposes of this
3-64     chapter.
3-65              (Sections 384.056-384.080 reserved for expansion)
3-66                      SUBCHAPTER D.  BOARD OF DIRECTORS
3-67           Sec. 384.081.  BOARD OF DIRECTORS.  (a)  The district is
3-68     governed by a board of nine directors.  The board may increase or
3-69     decrease the number of directors on the board by resolution if the
 4-1     board finds that to do so is in the best interest of the district.
 4-2     The board may not have more than 15 directors.
 4-3           (b)  The county commissioners court shall appoint the
 4-4     directors to serve staggered four-year terms with as near as
 4-5     possible to one-half of the directors' terms expiring on June 1 of
 4-6     each odd-numbered year.  At least five directors must reside in or
 4-7     own property in the county.  To serve as a director, a person must
 4-8     be at least 18 years old and:
 4-9                 (1)  reside in the district;
4-10                 (2)  own property in the district; or
4-11                 (3)  be an agent, employee, or tenant of a district
4-12     property owner.
4-13           (c)  The board shall elect from among its members a
4-14     president, vice president, and secretary.  The board by rule may
4-15     provide for the election of other officers.
4-16           Sec. 384.082.  REMOVAL; VACANCIES.  (a)  On petition by a
4-17     majority of the remaining directors and after notice and hearing,
4-18     the county commissioners court may remove a director for misconduct
4-19     or failure to carry out the director's duties.
4-20           (b)  A vacancy in the office of a director because of the
4-21     death, resignation, or removal of a director shall be filled by the
4-22     remaining directors by appointing a director for the unexpired
4-23     term.
4-24           Sec. 384.083.  BOARD MEETINGS.  The board shall meet at least
4-25     once every three months and at the call of the presiding officer or
4-26     a majority of the directors.
4-27           Sec. 384.084.  RULE-MAKING.  (a)  The board may adopt rules
4-28     necessary or convenient to carry out district powers and duties.
4-29           (b)  The board may adopt rules to govern its affairs.
4-30           (c)  The board may adopt rules to preserve the public health
4-31     and welfare concerning the agricultural products submitted to the
4-32     district for harvesting, processing, distributing, or transporting.
4-33           (d)  The board may adopt rules on the priority of the use of
4-34     district property and services, including the payment of fees.
4-35           Sec. 384.085.  HEARINGS.  (a)  The board may conduct hearings
4-36     and take evidence on any matter before the board.
4-37           (b)  The board may appoint a hearings examiner to conduct a
4-38     hearing called by the board.  The hearings examiner may be a
4-39     district employee or director.
4-40           Sec. 384.086.  EMPLOYEES; EXECUTIVE DIRECTOR.  A board may
4-41     employ:
4-42                 (1)  an executive director to manage the district's
4-43     day-to-day operations; and
4-44                 (2)  other persons necessary to carry out the
4-45     district's duties.
4-46           Sec. 384.087.  COMPENSATION AND EXPENSES.  A director serves
4-47     without compensation but shall be reimbursed for a reasonable and
4-48     necessary expense incurred in performing an official duty.
4-49           Sec. 384.088.  DIRECTOR'S BOND.  (a)  As soon as practicable
4-50     after a director is appointed, the director shall execute a $10,000
4-51     bond payable to the district and conditioned on the faithful
4-52     performance of the director's duties.
4-53           (b)  Each director's bond must be approved by the board.
4-54           (c)  The bond shall be filed with and retained by the
4-55     district.
4-56           Sec. 384.089.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
4-57     (a)  Except as provided in this section:
4-58                 (1)  a director may participate in all board votes and
4-59     decisions; and
4-60                 (2)  Chapter 171 governs conflicts of interest for
4-61     directors.
4-62           (b)  Section 171.004 does not apply to the district.
4-63     Instead, a director who has a substantial interest in a business or
4-64     charitable entity that will receive a pecuniary benefit from a
4-65     board action shall file a one-time affidavit declaring the
4-66     interest.  An additional affidavit is not required if the
4-67     director's interest changes.  After the affidavit is filed with the
4-68     board secretary, the director may participate in a discussion or
4-69     vote on that action if:
 5-1                 (1)  a majority of the directors have similar interests
 5-2     in the same entity; or
 5-3                 (2)  all similar business or charitable entities in the
 5-4     district will receive a similar pecuniary benefit.
 5-5           (c)  A director who is also an officer or employee of a
 5-6     public entity may not participate in the discussion of or vote on a
 5-7     matter regarding a contract with that same public entity.
 5-8           (d)  For purposes of this section, a director has a
 5-9     substantial interest in a charitable entity in the same manner that
5-10     a person would have a substantial interest in a business entity
5-11     under Section 171.002.
5-12              (Sections 384.090-384.100 reserved for expansion)
5-13                       SUBCHAPTER E.  FINANCES; BONDS
5-14           Sec. 384.101.  MISCELLANEOUS FINANCIAL POWERS AND DUTIES.
5-15     (a)  The district may:
5-16                 (1)  acquire and dispose of money;
5-17                 (2)  impose a charge for using a facility or a service
5-18     the district provides;
5-19                 (3)  issue a bond as provided by this subchapter;
5-20                 (4)  borrow money;
5-21                 (5)  loan money;
5-22                 (6)  invest money under its control in an investment
5-23     permitted by Chapter 2256, Government Code;
5-24                 (7)  select a depository;
5-25                 (8)  establish a system of accounts for the district;
5-26     and
5-27                 (9)  set the fiscal year for the district.
5-28           (b)  The district shall endeavor to raise revenue sufficient
5-29     to pay its debts.
5-30           (c)  The board by rule shall establish the procedure and
5-31     number of directors' signatures required to disburse or transfer
5-32     district money.
5-33           Sec. 384.102.  BONDS.  (a)  The district may issue any type
5-34     of bond for any district purpose.  A bond may be issued under
5-35     Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
5-36     (Article 717q, Vernon's Texas Civil Statutes).
5-37           (b)  When authorizing the issuance of a bond, the district
5-38     may also authorize the later issuance of a parity or subordinate
5-39     lien bond.
5-40           (c)  A district bond must:
5-41                 (1)  mature not later than 40 years after its date of
5-42     issuance; and
5-43                 (2)  state on its face that the bond is not an
5-44     obligation of the state.
5-45           (d)  A district bond may be payable from or secured by:
5-46                 (1)  any source of money, including district revenue,
5-47     loans, or assessments; or
5-48                 (2)  a lien, pledge, mortgage, or other security
5-49     interest on district revenue or property.
5-50           (e)  The district may use bond proceeds for any purpose,
5-51     including to pay:
5-52                 (1)  into a reserve fund for debt service;
5-53                 (2)  for the repair or replacement of property,
5-54     including buildings and equipment;
5-55                 (3)  interest on bonds; or
5-56                 (4)  for the operation of a sugar mill or other
5-57     agricultural enterprise.
5-58           (f)  The district may contract with a bondholder to impose an
5-59     assessment to pay for the operation of a sugar mill or other
5-60     agricultural enterprise.
5-61           Sec. 384.103.  APPROVAL  OF ASSESSMENT BONDS.  A  bond
5-62     secured by an assessment may not be issued unless the district
5-63     receives a written petition requesting the assessment and the
5-64     issuance of bonds that is signed by each owner of the property
5-65     being assessed.
5-66              (Sections 384.104-384.110 reserved for expansion)
5-67                         SUBCHAPTER F.  ASSESSMENTS
5-68           Sec. 384.111.  GENERAL POWERS.  (a)  The board may impose an
5-69     assessment:
 6-1                 (1)  for a district expense;
 6-2                 (2)  to finance a project or district service; or
 6-3                 (3)  for any other purpose authorized by this chapter.
 6-4           (b)  Money derived from an assessment for one purpose may not
 6-5     be borrowed to be used for another purpose for which an assessment
 6-6     is imposed.
 6-7           (c)  The board shall establish a procedure for the
 6-8     distribution or use of money derived from an assessment that
 6-9     exceeds the amount of money necessary to accomplish the purpose for
6-10     which the assessment was collected.
6-11           Sec. 384.112.  AREA TO BE ASSESSED; LIMITS.  (a)  The board
6-12     may impose an assessment only on property included in a petition
6-13     for assessment.
6-14           (b)  The owner of an improvement constructed in the district,
6-15     or of land annexed to the district, after the district imposed an
6-16     assessment may waive the right to notice and an assessment hearing
6-17     and may agree to the imposition of the assessment on the
6-18     improvement or land and payment of the assessment at an agreed
6-19     rate.
6-20           (c)  The district may not impose an assessment on a utility's
6-21     property.  For purposes of this subsection,  "utility" means a
6-22     person that provides to the public gas, electricity, telephone,
6-23     sewage, or water service.
6-24           Sec. 384.113.  HEARING  AND PETITION REQUIRED.  The board may
6-25     impose an assessment only if:
6-26                 (1)  a written petition has been filed with the board
6-27     that:
6-28                       (A)  requests the assessment;
6-29                       (B)  states the specific purpose of the
6-30     assessment; and
6-31                       (C)  is signed by each owner of the property to
6-32     be assessed;
6-33                 (2)  two-thirds of the board votes to impose the
6-34     assessment;
6-35                 (3)  the board provides notice of a hearing on the
6-36     proposal under Section 384.119; and
6-37                 (4)  the board holds a hearing on the advisability of
6-38     the assessment under Section 384.120.
6-39           Sec. 384.114.  APPORTIONMENT OF COST.  The board shall
6-40     apportion the cost of an assessment to property according to the
6-41     special benefits accruing to the property because of the project or
6-42     service to be financed by the assessment.  The cost may be
6-43     assessed:
6-44                 (1)  equally by front foot or by square foot of land
6-45     area;
6-46                 (2)  equally by acreage of land;
6-47                 (3)  against property according to the value of the
6-48     property as determined by the board, which may consider the value
6-49     of a structure or improvement on the property; or
6-50                 (4)  on any other reasonable assessment plan that
6-51     imposes a fair share of the cost on property similarly benefited.
6-52           Sec. 384.115.  ASSESSMENT TO FINANCE A PROJECT OR SERVICE.
6-53     If the board determines the total cost of an assessment to finance
6-54     a project or service, the board shall impose the assessment against
6-55     each parcel of land against which an assessment may be imposed in
6-56     the district.  The board may impose an annual assessment for a
6-57     service.  The amount of an annual service assessment may vary from
6-58     year to year, but may not be higher than the initial assessment.
6-59           Sec. 384.116.  ASSESSMENT ROLL.  (a)  The board shall prepare
6-60     and maintain an assessment roll showing the assessment against each
6-61     property and the board's basis for the assessment.
6-62           (b)  The board shall allow the public to inspect the
6-63     assessment roll.
6-64           Sec. 384.117.  INTEREST ON ASSESSMENTS; LIEN.  (a)  An
6-65     assessment, including an assessment resulting from an addition or
6-66     correction to the assessment roll, penalties and interest on an
6-67     assessment, assessment collection expenses, and reasonable
6-68     attorney's fees incurred by the district in collecting an
6-69     assessment are:
 7-1                 (1)  a first and prior lien against the property
 7-2     assessed;
 7-3                 (2)  superior to any other lien or claim other than a
 7-4     lien or claim for county, school district, or municipal ad valorem
 7-5     taxes; and
 7-6                 (3)  the personal liability of and charge against the
 7-7     owners of the property, even if the owners are not named in an
 7-8     assessment proceeding.
 7-9           (b)  The lien is effective from the date of the order
7-10     imposing the assessment until the assessment is paid.
7-11           Sec. 384.118.  MISTAKES.  After notice and hearing in the
7-12     manner required for an original assessment, the board may impose an
7-13     assessment to correct a mistake in the assessment:
7-14                 (1)  relating to the total cost of the assessment; or
7-15                 (2)  covering a delinquency or collection costs.
7-16           Sec. 384.119.  NOTICE OF HEARING.  (a)  The board shall
7-17     provide notice of a hearing in a newspaper with general circulation
7-18     in the county.  The publication must be made not later than the
7-19     30th day before the date of the hearing.
7-20           (b)  The notice must include the:
7-21                 (1)  time and place of the hearing;
7-22                 (2)  purpose for the proposed assessment;
7-23                 (3)  estimated cost of the purpose for which the
7-24     assessment is proposed, including interest during construction and
7-25     associated financing costs; and
7-26                 (4)  proposed assessment method.
7-27           (c)  Not later than the 30th day before the date of the
7-28     hearing, the board shall mail written notice containing the
7-29     information required by Subsection (b) to each property owner in
7-30     the district that will be subject to the assessment at the current
7-31     address of the owner of the property to be assessed, as reflected
7-32     on the tax rolls.
7-33           Sec. 384.120.  CONDUCT OF HEARING.  (a)  A hearing on a
7-34     proposed assessment may be adjourned from time to time.
7-35           (b)  If a hearings examiner conducts the hearing, the
7-36     examiner shall file with the board a report on the examiner's
7-37     findings under Subsection (d).
7-38           (c)  The board or hearings examiner shall hear and rule on
7-39     all objections to a proposed assessment.
7-40           (d)  The board or hearings examiner shall make findings
7-41     relating to the:
7-42                 (1)  advisability of the assessment, including the
7-43     purpose of the assessment;
7-44                 (2)  estimated cost of the assessment;
7-45                 (3)  area benefited by the assessment;
7-46                 (4)  method of assessment; and
7-47                 (5)  method and time for payment of the assessment.
7-48           (e)  After receiving or issuing the findings required by
7-49     Subsection (d), the board by order:
7-50                 (1)  shall:
7-51                       (A)  impose the assessment as a special
7-52     assessment on the property; and
7-53                       (B)  specify the method of payment on the
7-54     assessment; and
7-55                 (2)  may:
7-56                       (A)  amend a proposed assessment for any parcel;
7-57                       (B)  require an assessment to be paid in periodic
7-58     installments, including interest;
7-59                       (C)  require an interest charge or penalty for a
7-60     failure to make timely payment; or
7-61                       (D)  charge an amount to cover a delinquency or
7-62     collection expense.
7-63           (f)  If the board orders that an assessment may be paid in
7-64     periodic installments, the installments must:
7-65                 (1)  be in amounts sufficient to meet the annual costs
7-66     of the project or service for which the assessment is imposed; and
7-67                 (2)  continue for the number of years required to
7-68     retire the indebtedness or pay for the project or service for which
7-69     the assessment is imposed.
 8-1           Sec. 384.121.  REHEARING.  Section 2001.146, Government Code,
 8-2     applies to a motion for rehearing except that the property owner
 8-3     must file the motion for rehearing not later than the 30th day
 8-4     after the date on which the assessment order is issued.
 8-5           Sec. 384.122.  FILING OF NOTICE OF ASSESSMENT.  Not later
 8-6     than the 30th day after the date on which an assessment order is
 8-7     issued, the district shall file a notice of the assessment in the
 8-8     deed records of the county in which the property to be assessed is
 8-9     located.  The notice must:
8-10                 (1)  provide a legal description of the property that
8-11     is subject to the assessment;
8-12                 (2)  state the name of the owner of the property that
8-13     is subject to the assessment; and
8-14                 (3)  describe how to contact the district for further
8-15     information about the assessment.
8-16           Sec. 384.123.  APPEAL TO COURT.  (a)  A property owner
8-17     against whom an assessment is imposed may appeal the assessment to
8-18     a district court in the county in which the property is located in
8-19     the manner provided for the appeal of a contested case under
8-20     Chapter 2001, Government Code.
8-21           (b)  The owner must file the notice of appeal with the court
8-22     not later than the 30th day after the board decision becomes final.
8-23           (c)  The court shall review the appeal by trial de novo.
8-24           Sec. 384.124.  ASSESSMENT AFTER APPEAL.  If the board
8-25     determines or a court holds that an assessment is invalid, the
8-26     board may impose a new assessment in accordance with the procedures
8-27     provided by this subchapter.
8-28              (Sections 384.125-384.140 reserved for expansion
8-29                         SUBCHAPTER G.  DISSOLUTION
8-30           Sec. 384.141.  The district dissolves if:
8-31                 (1)  a majority of the board votes for dissolution; and
8-32                 (2)  all district debts and obligations have been
8-33     discharged.
8-34           SECTION 2.  (a)  Not later than December 1, 1999, the
8-35     commissioners court of Chambers County shall appoint nine members
8-36     to the initial board of directors of the Southeast Texas
8-37     Agricultural Development District.
8-38           (b)  Chambers County shall designate four members whose terms
8-39     expire on June 1, 2001, and five members whose terms expire on June
8-40     1, 2003.
8-41           SECTION 3.  (a)  The proper and legal notice of the intention
8-42     to introduce this Act, setting forth the general substance of this
8-43     Act, has been published as provided by law, and the notice and a
8-44     copy of this Act have been furnished to all persons, agencies,
8-45     officials, or entities to which they are required to be furnished
8-46     by the constitution and other laws of this state, including the
8-47     governor, who has submitted the notice and Act to the Texas Natural
8-48     Resource Conservation Commission.
8-49           (b)  The Texas Natural Resource Conservation Commission has
8-50     filed its recommendations relating to this Act with the governor,
8-51     lieutenant governor, and speaker of the house of representatives
8-52     within the required time.
8-53           (c)  All requirements of the constitution and laws of this
8-54     state and the rules and procedures of the legislature with respect
8-55     to the notice, introduction, and passage of this Act are fulfilled
8-56     and accomplished.
8-57           SECTION 4.  This Act takes effect September 1, 1999.
8-58           SECTION 5.  The importance of this legislation and the
8-59     crowded condition of the calendars in both houses create an
8-60     emergency and an imperative public necessity that the
8-61     constitutional rule requiring bills to be read on three several
8-62     days in each house be suspended, and this rule is hereby suspended.
8-63                                  * * * * *