Amend CSSB 1686 (Senate Committee report) by striking all
below the enacting clause and substituting the following:
SECTION 1. LEGISLATIVE FINDINGS; PURPOSES. (a) The West
Galveston Island Conservation District is created as a special
district under Section 59, Article XVI, Texas Constitution.
(b) The creation of the district is declared to be essential
to the accomplishment of the purposes of Section 59, Article XVI,
and Section 52-a, Article III, Texas Constitution, and to the
accomplishment of the other public purposes stated in this Act.
(c) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce, economic
development, and the public welfare in the area of the district.
(d) The creation of the district and this Act may not be
interpreted to relieve any county or municipality from providing
services to the area included in the district or to release the
county or municipality from the obligation it has to provide
services to that area. The district is created to supplement and
not supplant the services of the county or municipality.
(e) All of the land and other property to be included within
the boundaries of the district will be benefited by the works and
projects that are to be accomplished and the services to be
provided by the district under powers conferred by Section 59,
Article XVI, and Section 52-a, Article III, Texas Constitution, and
other powers granted in this Act.
(f) The district is created to serve a public use and
benefit.
(g) The creation of the district is essential to further the
public purposes of development and diversification of the economy
of the state, the elimination of unemployment and underemployment,
and the development or expansion of commerce and is in the public
interest.
(h) The creation of the district is necessary to protect the
state's natural resources by restoration and protection of natural
resources along the boundaries of and within the district, through
improvement projects, matching fund contributions to improvement
projects by the state or county, and services provided by the
district under this Act.
(i) The creation of the district is necessary to promote,
develop, and encourage navigation along the state's coastal waters,
bays, and inlets, including the deepening and widening of
navigation channels.
(j) Each improvement project or service authorized by this
chapter is found and declared to carry out a public purpose.
SECTION 2. CONSTRUCTION OF ACT. This Act shall be liberally
construed in conformity with the findings and purposes in Section 1
of this Act.
SECTION 3. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "Bond" means any type of interest-bearing
obligation, including a bond, note, bond anticipation note,
certificate of participation, lease, contract, or other evidence of
indebtedness.
(3) "Commission" means the Texas Natural Resource
Conservation Commission.
(4) "County" means Galveston County.
(5) "District" means the West Galveston Island
Conservation District.
SECTION 4. GOVERNMENTAL AGENCY. Except as provided by
Section 14 of this Act, the district is a governmental agency, a
body politic and corporate, and a political subdivision of the
state.
SECTION 5. BOUNDARIES. The district includes all of the
territory contained in the following described land:
BEGINNING at the intersection of the southerly projection of
the centerline of 103rd Street in the City of Galveston, Texas, and
the mean high tide line of the Gulf of Mexico on Galveston Island;
Thence along the mean high tide line of the Gulf of Mexico
and San Luis Pass in a westerly then northerly direction to the
intersection of such line with the centerline of FM 3005;
Thence along the centerline of FM 3005 in a westerly
direction to the intersection of such line with the Galveston
County-Brazoria County line;
Thence along the Galveston County-Brazoria County line in a
northerly direction to the intersection of such line with the
centerline of the Intracoastal Waterway;
Thence along the centerline of the Intracoastal Waterway in
an easterly direction to the intersection of such line with the
northerly projection of the centerline of 103rd Street in the City
of Galveston, Texas; and
Thence along the centerline of 103rd Street in the City of
Galveston, Texas, and the northerly and southerly projection
thereof to the PLACE OF BEGINNING.
SECTION 6. FINDINGS RELATED TO BOUNDARIES. The boundaries
and field notes of the district form a closure. If a mistake is
made in the field notes or in copying the field notes in the
legislative process, it does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or ad
valorem taxes; or
(4) legality or operation.
SECTION 7. CONFIRMATION ELECTION. (a) The initial directors
shall meet as soon as practicable after all initial directors have
qualified for office. At the first meeting of the board, the board
shall call an election to be held within the boundaries of the
district to confirm the creation of the district. The election
must be held on the first uniform election date provided by Section
41.001, Election Code, that falls on or after the 45th day after
the date of the order calling the election.
(b) The district may not issue any bonds or other
obligations, impose an assessment or ad valorem tax, or conduct any
other activity before a confirmation election is held.
(c) The board shall give notice of the confirmation
election. The notice must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
(d) The ballot shall be printed to permit voting "For
District" or "Against District."
(e) Immediately after the confirmation election, the
presiding judge of each election precinct shall take returns of the
result to the board. The board shall canvass the returns and
declare the results at the earliest practicable time.
(f) If a majority of the votes cast in the election favor
the creation of the district, the board shall declare that the
district is created and enter the result in its minutes. If a
majority of the votes cast in the election are against the creation
of the district, the board shall declare that the proposition to
create the district was defeated and enter the result in its
minutes. A certified copy of the minute order declaring that the
district is created or declaring that the proposition to create the
district was defeated shall be filed with the commission.
(g) If the proposition to create the district is defeated,
another election to confirm the creation of the district may not be
held until the expiration of six months after the date of the most
recent confirmation election. The board may not call more than
three confirmation elections.
(h) The order canvassing the results of the confirmation
election shall contain a description of the district's boundaries
and shall be filed with the executive director of the commission
and in the deed records of the county.
SECTION 8. ANNEXATION. The district may annex land as
provided by Subchapter J, Chapter 49, Water Code, subject to the
approval of the commissioners court of the county.
SECTION 9. EXCLUDING TERRITORY. (a) At any time during
which the district does not have outstanding bonds, the board on
its own motion may call a hearing on the question of the exclusion
of land from the district in the manner provided by Subchapter J,
Chapter 49, Water Code, if the board finds that the exclusions are
practicable, just, or desirable.
(b) The board shall call a hearing on the exclusion of land
or other property from the district if a landowner or property
owner in the district files with the secretary of the board a
written petition requesting the hearing before the issuance of
bonds.
SECTION 10. BOARD OF DIRECTORS. (a) The district is
governed by a board of five directors who serve staggered terms of
four years, with three directors' terms expiring June 1 of an
odd-numbered year and two directors' terms expiring June 1 of the
following odd-numbered year.
(b) The commissioners court of the county shall appoint the
initial directors from persons recommended by members of the
commissioners court. A person is appointed if the county judge and
a majority of the commissioners of the county vote to appoint that
person.
(c) As soon as practicable after the first anniversary of
the date on which the creation of the district is confirmed, the
board shall call and hold an election to elect the initial
permanent directors.
(d) The election shall be held in the manner provided by
Section 49.102, Water Code.
(e) The election must be held on the first uniform election
date provided by Section 41.001, Election Code, that falls on or
after the 45th day after the date of the order calling the
election. The initial directors elected at the election shall draw
lots to determine their terms so that two serve terms expiring on
the first July 1 of an odd-numbered year after the election and
three serve terms expiring July 1 of the second year after the year
in which the first terms expire.
(f) An election to elect the appropriate number of successor
directors shall be held on the uniform election date, established
by the Election Code, in May of each odd-numbered year.
(g) To be qualified to serve as a director, a person must be
at least 18 years old and:
(1) a resident and qualified voter of the district;
and
(2) an owner of property in the district.
(h) A director may serve successive terms.
(i) The commissioners court may remove a director for
misconduct or failure to carry out the director's duties or for any
other reason on petition by a majority of the remaining directors
or a majority of the commissioners court and after notice and
hearing.
(j) A vacancy in the office of director shall be filled by
appointment by the commissioners court for the unexpired term.
(k) As soon as practicable after a director is appointed or
elected, the director shall execute a $10,000 bond payable to the
district and conditioned on the faithful performance of the
director's duties. Each director's bond must be approved by the
board, and each director shall take the oath of office for public
officers prescribed by the constitution of this state. The bond and
oath shall be filed with the district and retained in its records.
(l) After directors are appointed or elected and have
qualified by executing a bond and taking the oath, they shall
organize by electing a president, a vice president, a secretary,
and any other officers the board considers necessary.
(m) In accordance with Section 49.060, Water Code, a
director is entitled to compensation for service on the board and
is entitled to be reimbursed for necessary expenses incurred in
carrying out the duties and responsibilities of a director.
(n) A majority of the directors constitutes a quorum.
(o) The vote of a majority of directors is required for any
official action of the district.
SECTION 11. GENERAL POWERS OF DISTRICT. (a) Except for the
limitations set forth in this Act, the district has the rights,
powers, privileges, authority, and functions conferred by the
general law of this state applicable to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including those conferred by Chapter 54, Water Code,
with respect to the purposes for which the district is created.
(b) The district may contract and manage its affairs and
funds for any district purpose in accordance with Chapter 54, Water
Code.
SECTION 12. SPECIFIC POWERS AND DUTIES OF DISTRICT. (a) A
district has the powers necessary or convenient to carry out and
effect the purposes and provisions of this chapter, including the
powers granted in this section.
(b) The district has perpetual succession.
(c) The district may:
(1) sue and be sued in courts of competent
jurisdiction, and institute and prosecute suits;
(2) incur liabilities and borrow money on terms the
board determines;
(3) issue bonds;
(4) acquire by grant, purchase, gift, devise, lease,
or otherwise and hold, use, sell, lease, or dispose of real and
personal property, licenses, patents, rights, and interests
necessary, convenient, or useful for the full exercise of any of
its powers under this Act;
(5) acquire, construct, complete, develop, own,
operate, and maintain permanent improvements and provide services
inside and outside its boundaries, except as specifically limited
in this Act;
(6) enter into agreements with a public or private
person for the joint use of facilities, installations, and
property;
(7) enter into contracts, leases, and agreements with
and accept grants and loans from the United States and its
departments and agencies, the state and its agencies, counties,
municipalities, and political subdivisions, public or private
corporations, and other persons and perform all acts necessary for
the full exercise of the powers vested in it on terms and for the
term the board may determine to be advisable;
(8) acquire property under conditional sales
contracts, leases, equipment trust certificates, or any other form
of contract or trust agreement;
(9) sell, lease, convey, or otherwise dispose of any
of its rights, interests, or properties that are not needed for or,
in the case of leases, that are not consistent with, the efficient
operation and maintenance of the district's improvements;
(10) sell, lease, or otherwise dispose of any surplus
material or personal or real property not needed for its
requirements or for the purpose of carrying out its powers under
this Act;
(11) procure and pay premiums to insurers for
insurance of any type in amounts considered necessary or advisable
by the board; and
(12) do anything necessary, convenient, or desirable
to carry out the powers expressly granted or implied by this Act.
SECTION 13. USE AND ALTERATION OF LAND AND PUBLIC WAYS. (a)
Except as otherwise provided by this Act, the district may
construct all improvements and facilities necessary to accomplish
the purposes for which it was created on lands, whether publicly or
privately owned.
(b) Before the district may construct an improvement or
facility on lands owned by the county, the state, a municipality,
or another political subdivision, the district must obtain from the
entity prior approval of the plans and specifications of the
improvement or facility and any required easement, lease, or
permit.
(c) The district shall bear all of the costs, expenses, and
damages suffered by owners of property or facilities if the
district, in exercising any of the powers conferred by this Act,
requires the relocation, adjustment, raising, lowering, rerouting,
or changing the grade of or altering the construction of any:
(1) streets, alleys, highways, overpasses,
underpasses, or roads;
(2) railroad tracks, bridges, or other facilities or
property;
(3) electric lines, conduits, or other facilities or
property;
(4) telephone or telegraph lines, conduits, or other
facilities or property;
(5) gas transmission or distribution pipes, pipelines,
mains, or other facilities or property;
(6) water, sanitary sewer or storm sewer pipes,
pipelines, mains, or other facilities or property;
(7) cable television lines, cables, conduits, or other
facilities or property; or
(8) other pipelines and any facilities or properties
relating to those pipelines.
SECTION 14. PROTECTION OF PUBLIC BEACHES. (a) The district
is not an agency, department, institution, subdivision, or
instrumentality of this state for purposes of Section 61.022,
Natural Resources Code.
(b) Construction by the district in a critical dune area
identified by the commissioner of the General Land Office under
Section 63.121, Natural Resources Code, that affects or that may
affect public health or public access to or use of a public beach
must be approved by an order of the commissioners court of the
county as provided by Subchapter C, Chapter 63, Natural Resources
Code. Construction by the district on land adjacent to and
landward of a public beach that affects or that may affect public
health or public access to or use of the public beach must be
approved by an order of the commissioners court of the county as
provided by Section 61.015, Natural Resources Code. After the
commissioners court by order approves the construction in a
critical dune area or on land adjacent to and landward of a public
beach, the district shall submit the order and supporting
documentation to the General Land Office for approval, disapproval,
comment, or other action considered appropriate by the General Land
Office and to the office of the attorney general. The district may
not begin the construction without the prior approval of the
General Land Office. The district may not construct or undertake a
project on a public beach seaward of the natural vegetation line,
as defined by Section 61.001, Natural Resources Code. The district
may provide district funds for a state, county, or local government
project that complies with Section 61.022, Natural Resources Code,
for the protection of the shore or another lawful purpose.
SECTION 15. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain. The county may exercise its
power of eminent domain to implement a district facility or
improvement.
SECTION 16. POWERS AND DUTIES OF BOARD. (a) The
responsibility for the management, operation, and control of the
property belonging to the district is vested in the board.
(b) The board may:
(1) employ all persons, firms, partnerships, or
corporations considered necessary by the board for the conduct of
the affairs of the district, including a general manager,
bookkeepers, auditors, engineers, attorneys, financial advisers,
peace or traffic control officers, architects, and operating or
management companies, and prescribe the duties, tenure, and
compensation of each;
(2) dismiss employees;
(3) adopt a seal for the district;
(4) invest the district's money in any investments
authorized by Subchapter A, Chapter 2256, Government Code, and
provide, by resolution, that an authorized representative manage
the district's funds and invest and reinvest the money on terms the
board considers advisable;
(5) establish a fiscal year for the district;
(6) establish a complete system of accounts for the
district; and
(7) designate one or more banks to serve as the
depository bank or banks.
(c) Each year the board shall have prepared an audit of the
district's affairs by an independent certified public accountant or
a firm of independent certified public accountants. The audit
prepared under this subsection must be open to public inspection.
(d) Money of the district shall be deposited in the
depository bank or banks unless otherwise required by orders or
resolutions authorizing the issuance of the district's bonds. To
the extent that money in the depository bank or banks is not
insured by the Federal Deposit Insurance Corporation, the money
must be secured in the manner provided by law for the security of
funds of counties. The board by resolution may authorize a
designated representative to supervise the substitution of
securities pledged to secure the district's money.
(e) The board may adopt and enforce reasonable rules
governing the administration of the district and its programs and
projects.
(f) The name of the district may be established or changed
by resolution of the board.
SECTION 17. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT.
(a) The board may appoint a hearings examiner to conduct any
hearing called by the board, including a hearing required by
Chapter 395, Local Government Code. The hearings examiner may be
an employee of the district or a member of the board.
(b) The hearing shall be conducted in accordance with
Chapter 2001, Government Code.
SECTION 18. GENERAL POWERS RELATING TO ASSESSMENTS;
IMPROVEMENT PROJECTS. (a) The board may impose and collect an
assessment for any purpose authorized by and in the manner provided
by this Act if the commissioners court of the county approves the
assessment.
(b) The board may undertake an improvement project or
service that confers a special benefit on all or a definable part
of the district. The board may impose and collect a special
assessment on property in that area, based on the benefit conferred
by the improvement project or service, to pay all or part of the
cost of the project or service. If the board determines that there
is a benefit to the district, the district may provide an
improvement or service to an area outside the boundaries of the
district.
(c) The district may not undertake an improvement project or
provide a service unless the district uses a method approved by the
General Land Office, the office of the attorney general, or any
other governmental entity with the authority to regulate the
improvement project or service.
SECTION 19. PROPOSED ASSESSMENTS. An improvement project or
service may be financed under this Act after notice of a hearing is
given as required by Section 21 of this Act and the board holds a
public hearing on the advisability of the improvement project or
service and the proposed assessment.
SECTION 20. PETITION REQUIRED. The board may finance an
improvement project or service if a written petition is filed with
the board requesting the improvement project or service. If more
than 25 persons are qualified voters of the district and own real
property in the district, according to the most recent certified
property tax rolls, the petition must be signed by at least 25
persons who are qualified voters of the district and who own real
property in the district.
SECTION 21. NOTICE OF HEARING. (a) Notice of the hearing
shall be given in a newspaper with general circulation in the
county. The publication must be made not later than the 30th day
before the date of the hearing.
(b) The notice must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement
project or service;
(3) the estimated cost of the improvement project or
service, including interest during construction and associated
financing costs; and
(4) the proposed method of assessment.
(c) Written notice containing the information required by
this section shall be mailed by certified mail, return receipt
requested, not later than the 30th day before the date of the
hearing to each property owner in the district who will be subject
to assessment at the current address of the property to be assessed
as reflected on the tax rolls or the address provided by the
property owner for tax purposes.
SECTION 22. CONCLUSION OF HEARING; FINDINGS. (a) A hearing
on the improvement project or service, whether conducted by the
board or a hearings examiner, may be adjourned from time to time.
(b) If the board conducts the hearing, at the conclusion of
the hearing the board shall make findings by resolution or order
relating to the advisability of the improvement project or service,
the estimated cost, the area benefited, the method of assessment,
and the method and time for payment of the assessment.
(c) If a hearings examiner is appointed to conduct the
hearing, after conclusion of the hearing the hearings examiner
shall file with the board a report stating the examiner's findings
and conclusions. Based on the findings and conclusions of the
hearings examiner, the board shall make findings by resolution or
order relating to the advisability of the improvement project or
service, the estimated cost, the area benefited, the method of
assessment, and the method and time for payment of the assessment.
SECTION 23. AREA TO BE ASSESSED. (a) The area of the
district to be assessed according to the findings of the board may
be the entire district or any part of the district and may be less
than the area proposed in the notice of the hearing.
(b) Except as provided by Subsection (c) of this section,
the area to be assessed may not include property that is not within
the district boundaries at the time of the hearing unless there is
an additional hearing preceded by the required notice.
(c) The owner of improvements constructed or land annexed to
the district after the district has imposed an assessment may waive
the right to notice and an assessment hearing and may agree to the
imposition and payment of an assessment at an agreed rate for
improvements constructed or land annexed to the district.
SECTION 24. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a) At a
hearing on proposed assessments, at any adjournment of the hearing
or after consideration of the hearings examiner's report, the board
shall hear and rule on all objections to each proposed assessment.
(b) The board may amend a proposed assessment for any
parcel.
(c) After all objections have been heard and action has been
taken with regard to those objections, the board, by order or
resolution, shall impose the assessment as a special assessment on
the property, shall specify the method of payment of the
assessment, and may provide that the assessment be paid in periodic
installments, including interest.
(d) A periodic installment of the payment of an assessment
shall be in an amount sufficient to meet annual costs for
improvements and services as provided by this Act and continue for
the number of years required to retire indebtedness or pay for the
services to be rendered. The board may provide interest charges or
penalties for failure to make timely payment and may impose an
amount to cover delinquencies and expenses of collection.
(e) If an assessment is imposed for more than one
improvement project or service, the board may provide that an
assessment collected for one improvement project or service may be
borrowed to be used for another improvement project or service.
(f) The board shall establish a procedure for the
distribution or use of any assessment in excess of those necessary
to finance the improvement project or service for which the
assessment was collected.
SECTION 25. APPORTIONMENT OF COST. The portion of the cost
of an improvement project or service to be assessed against the
property in the district shall be apportioned by the board based on
the special benefits accruing to the property because of the
improvement project or service. The cost may be assessed:
(1) equally by front foot or square foot of land area
against all property in the district;
(2) according to the value of the property as
determined by the board, with or without regard to structures or
other improvements on the property; or
(3) using any other reasonable assessment plan that
results in imposing fair and equitable shares of the cost on
property similarly benefited.
SECTION 26. ASSESSMENT ROLL. The board shall impose the
assessment against each parcel of land against which an assessment
may be imposed in the district after the total cost of an
improvement project or service is determined. With regard to an
assessment for services, the board may impose an additional annual
assessment that may be lower but not higher than the initial
assessment. The board shall have an assessment roll prepared
showing the assessment against each property and the board's basis
for the assessment. The assessment roll shall be filed with the
secretary of the board or other officer who performs the function
of secretary and shall be open for public inspection.
SECTION 27. INTEREST ON ASSESSMENTS; LIEN. (a) An
assessment bears interest at a rate specified by the board that may
not exceed the interest rate permitted by Chapter 1204, Government
Code.
(b) Interest on an assessment between the effective date of
the order or resolution imposing the assessment and the date the
first installment and any related penalty is payable shall be added
to the first installment. The interest or penalties on all unpaid
installments shall be added to each subsequent installment until
paid.
(c) Assessments, reassessments or assessments resulting from
an addition to or correction of the assessment roll by the
district, penalties and interest on an assessment or reassessment,
expenses of collection, and reasonable attorney's fees incurred by
the district are:
(1) a first and prior lien against the property
assessed;
(2) superior to any other lien or claim other than a
lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) the personal liability of and charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(d) The lien is effective from the date of the resolution of
the board imposing the assessment until the assessment is paid. The
board may enforce the lien in the same manner that the board may
enforce an ad valorem tax lien against real property.
(e) The owner of any property assessed may pay at any time
the entire assessment against any lot or parcel with accrued
interest to the date of the payment.
SECTION 28. SUPPLEMENTAL ASSESSMENTS. After notice and
hearing in the manner required for original assessments, the board
may make supplemental assessments to correct omissions or mistakes
in the assessment:
(1) relating to the total cost of the improvement
project or service; or
(2) covering delinquencies or costs of collection.
SECTION 29. APPEAL. (a) After determination of an
assessment, a property owner against whom an assessment is made may
appeal the assessment to the board. The property owner must file a
notice of appeal with the board not later than the 30th day after
the date that the assessment is adopted. The board shall set a
date to hear the appeal.
(b) The property owner may appeal the board's decision on
the assessment to a district court in the county in the manner
provided for the appeal of contested cases in Chapter 2001,
Government Code. The property owner must file notice of the appeal
with the district court not later than the 30th day after the date
of the board's final decision with respect to the assessment.
Review by the district court is by trial de novo.
(c) Failure to file a notice of appeal in the time required
by this section results in a loss of the right to appeal the
assessment.
(d) If an assessment against a parcel of land is set aside
by the district court, found excessive by the board, or determined
to be invalid by the board, the board may make a reassessment or
new assessment of the parcel.
SECTION 30. APPROVAL OF COMMISSIONERS COURT. An ad valorem
tax, an assessment, or a combination of an ad valorem tax and an
assessment, including an apportionment of an assessment, must be
approved by the commissioners court of the county.
SECTION 31. EXEMPTIONS. (a) The district may not impose an
assessment on the property, equipment, or facilities of a public
utility. For purposes of this section, "utility" means a person
that provides to the public gas, electricity, telephone, sewerage,
or water service.
(b) Payment of assessments by municipalities, counties,
other political subdivisions, and organizations exempt from federal
income tax under Section 501(a), Internal Revenue Code of 1986, by
being listed under Section 501(c)(3), Internal Revenue Code of
1986, shall be established by contract. Municipalities, counties,
and other political subdivisions may contract with the district
under terms and conditions those entities consider advisable to
provide for the payment of assessments.
SECTION 32. TAX FOR BONDS. At the time bonds payable wholly
or partly from taxes are issued, the board shall impose a
continuing direct annual ad valorem tax, for each year that all or
part of the bonds are outstanding, on all taxable property within
the district in a sufficient amount to pay the interest on the
bonds as it becomes due, to create a sinking fund for the payment
of the principal of the bonds when due or the redemption price at
any earlier required redemption rate, and to pay the expenses of
assessing and collecting the taxes.
SECTION 33. ESTABLISHMENT OF TAX RATE IN EACH YEAR. (a) In
determining the actual rate to be imposed in each year, the board
shall consider:
(1) the amount that is necessary for maintenance and
operation purposes, if an operation and maintenance tax has been
authorized as provided by Section 34 of this Act;
(2) the amount that is necessary for the payment of
principal, interest, and redemption price of each series of bonds
payable wholly or partly from taxes;
(3) the amount that is necessary for the purpose of
paying all other contractual obligations of the district payable
wholly or partly from taxes; or
(4) the percentage of anticipated tax collections and
the cost of collecting the taxes.
(b) In determining the amount of taxes that are necessary
each year, the board may consider whether proceeds from the sale of
bonds have been placed in escrow to pay interest during
construction and whether the board reasonably expects to have
revenue or receipts available for other sources that are legally
available to pay the principal of or interest on or redemption
price of the bonds. The board shall impose a tax in the first full
year after issuance of its first series of bonds.
SECTION 34. OPERATION AND MAINTENANCE TAX. (a) The district
may impose and collect a tax for operation and maintenance
purposes, including funds for planning, constructing, acquiring,
maintaining, repairing, and operating all necessary land, plants,
works, facilities, improvements, appliances, and equipment of the
district and for paying costs of proper services, engineering and
legal fees, and organization and administrative expenses.
(b) An operation and maintenance tax may not be imposed by
the district until it is approved by a majority of the qualified
voters within the district voting at an election held for that
purpose. After the district's voters have authorized an operation
and maintenance tax, the board may impose the tax and have it
assessed and collected as other district taxes.
(c) An operation and maintenance tax election may be held at
the same time and in conjunction with any other district election.
The election may be called by a separate election order or as part
of any other election order.
(d) The proposition in an operation and maintenance tax
election may be for a specific maximum rate or for an unlimited
rate.
(e) If the district has any surplus operation and
maintenance tax funds that are not needed for the purposes for
which they were collected, the funds may be used for any lawful
purpose.
SECTION 35. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND
SERVICES. (a) The cost of any improvement project or service,
including interest during construction and costs of issuance of
bonds, may be paid from general or available funds, ad valorem
taxes, assessments, or the proceeds of bonds payable from revenues,
ad valorem assessments, grants, gifts, contracts, or leases, or any
combination of those funds.
(b) During the progress of an improvement project or
service, the board may issue temporary notes to pay the costs of
the improvement project or service and issue bonds on completion.
(c) The costs of more than one improvement project or
service may be paid from a single issue and sale of bonds without
other consolidation proceeding before the bond issue.
SECTION 36. BONDS. (a) For the payment of all or part of
the costs of an improvement project or service, the board may issue
bonds in one or more series payable from and secured by
assessments, ad valorem taxes, revenues, grants, gifts, contracts,
or leases, or any combination of those funds. Bonds may be liens
on all or part of the revenue derived from improvements authorized
under this Act, including installment payments of special
assessments, ad valorem taxes, or any other source pledged to their
payment.
(b) The district may issue bonds, and the bonds shall be
approved in the manner prescribed by Subchapter J, Chapter 375,
Local Government Code.
(c) The board may issue and approve bonds without the
consent of the county, any municipality, or the commission.
SECTION 37. ELECTION TO APPROVE ISSUANCE OF BONDS. (a)
Bonds secured by assessments or ad valorem taxes, or a combination
of assessments and ad valorem taxes, may not be issued unless the
bonds are approved by a majority of the qualified voters in the
district voting at an election held for that purpose.
(b) Bonds that are not secured by assessments or ad valorem
taxes, or a combination of assessments and ad valorem taxes, may be
issued without an election.
(c) An election required by this section shall be conducted
in accordance with Chapter 375, Local Government Code.
SECTION 38. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS
CONTRACTS. (a) Contracts of the district are subject to the
competitive bidding requirements of Subchapter I, Chapter 49, Water
Code.
(b) This Act states the required procedures necessary for
the district to award contracts and supersedes any law or other
requirement with respect to the award of contracts.
SECTION 39. DISSOLUTION. (a) Except as provided by
Subsection (c) of this section, the board by majority vote may
dissolve the district at any time.
(b) Except as provided by Subsection (c) of this section,
the commissioners court of the county, by a vote of not less than
two-thirds, may adopt a resolution dissolving the district.
(c) A district may not be dissolved if the district has any
outstanding bonded indebtedness until that bonded indebtedness is
repaid or decreased in accordance with the order or resolution
authorizing the issuance of the bonds.
SECTION 40. CONTRACTS WITH DISTRICT. (a) A municipality,
county, or other political subdivision of the state, without
further authorization, may contract with the district to implement
a project of the district or aid and assist the district in
providing the services authorized under this Act. A contract under
this section may:
(1) be for a period on which the parties agree;
(2) include terms on which the parties agree;
(3) be payable from assessments or any other sources
of revenue that may be available for that purpose; or
(4) provide that assessments or other revenue
collected at a district project or from a person using or
purchasing a commodity or service at a district project may be paid
or rebated to the district under the terms of the contract.
(b) The district may enter into a contract, lease, or
agreement with or make or accept grants and loans to or from:
(1) the United States, including federal departments
and agencies;
(2) the state or a state agency;
(3) a county, municipality, or other political
subdivision of the state;
(4) a public or private corporation; or
(5) any other person.
(c) The district may perform all acts necessary for the full
exercise of the powers vested in the district on terms and for the
term the board may determine to be advisable.
SECTION 41. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
The legislature finds that:
(1) the proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, and entities to which they are required to be furnished
by the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the commission;
(2) the commission has filed its recommendations
relating to this Act with the governor, lieutenant governor, and
speaker of the house of representatives within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 42. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III,
Texas Constitution. If this Act does not receive the vote
necessary for immediate effect, this Act takes effect September 1,
2001.