SRC-JEC S.B. 1638 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1638
By: Bernsen
Intergovernmental Relations
4/6/2001
As Filed


DIGEST AND PURPOSE 

The Bolivar Peninsula, off the Texas Coast, is a fragile area that needs
further protection.  As proposed, S.B. 1638 creates a conservation district
for the Bolivar Peninsula to encourage commerce and economic development
while protecting the state's natural resources in the area through
restoration and protection measures.  It provides for the issuance of
bonds, levying of taxes and assessments, and other powers granted to
conservation districts, but does not grant the power of eminent domain. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of directors of the
Bolivar Conservation District in SECTION 24 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  LEGISLATIVE FINDINGS; PURPOSES.  Provides that the Bolivar
Conservation District (district) is created as a special district under
Section 59, Article XVI (Conservation and Development of Natural Resources;
Conservation and Reclamation Districts), Texas Constitution.  Sets forth
legislative findings and the purposes of the district. 

SECTION 2.  CONSTRUCTION OF ACT.  (a)  Requires this Act to be liberally
construed in conformity with the findings and purposes in Section 1. 

(b)  Provides that if any provision of general law is in conflict or
inconsistent with this Act, this Act prevails.  Any general law not in
conflict or inconsistent with this Act is adopted and incorporated by
reference. 

SECTION 3.  DEFINITIONS.  Defines "board," "bond," "commission," "county,"
and "district."  

SECTION 4.  GOVERNMENTAL AGENCY; TORT CLAIMS.  (a)  Provides that the
district is a governmental agency, a body politic and corporate, and a
political subdivision of the state. 

(b)  Provides that the district is a unit of government for purposes of
Chapter 101 (Tort Claims), Civil Practice and Remedies Code, and operations
of the district are considered to be essential governmental functions and
not proprietary functions for all purposes, including the application of
the Texas Tort Claims Act. 

SECTION 5.  BOUNDARIES OF THE DISTRICT.  Describes the geographic
parameters of the district.  

SECTION 6.  FINDINGS RELATING TO BOUNDARIES.  Provides that the boundaries
and field notes of the district form a closure.  Provides that 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 organization, existence, or
validity; 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;
right to impose or collect an assessment or ad valorem taxes; or  legality
or operation. 

SECTION 7.  CONFIRMATION ELECTION.  (a)  Requires an election to be held
within the boundaries of the district to determine if the district shall be
created before issuing any bonds or other obligations or levying an
assessment or ad valorem taxes or conducing any other activity. 

(b)  Requires notice of the confirmation election to state the day and
place or places for holding the election and the propositions to be voted
on. 

(c)  Requires the ballots for the confirmation election to be printed to
provide for voting "For District" and "Against District." 

(d)  Requires the presiding judge, immediately after the confirmation
election, to take returns of the results to the board of directors of the
district (board).  Requires the board to canvass the returns and declare
the results at the earliest practicable time. 

(e)  Provides that if a majority of the votes cast by qualified voters
within the district in the election favor the creation of the district,
then the board is required to declare that the district is created and
enter the results in the minutes.  Provides that if a majority of the votes
cast in the election are against the creation of the district, the board is
required to declare that the district was defeated and enter the results in
its minutes.  Requires a copy of the order to be filed with the Texas
Natural Resource Conservation Commission (commission). 

 (f)  Authorizes the board to call more than one confirmation election.

(g)  Requires the order canvassing the results of the confirmation election
to contain a description of the district's boundaries and to be filed with
the executive director of the commission and in the deed records of
Galveston County (county). 

SECTION 8.  ANNEXATION.  Authorizes the district to annex land as provided
by Chapter 49J (Annexation or Exclusion of Land), Water Code, subject to
the approval of the commissioners court of the county. 

SECTION 9.  EXCLUDING TERRITORY.  (a)  Authorizes the board, at any time
during which the district does not have outstanding bonds, on its own
motion to call a hearing on the question of the exclusion of land from the
district in the manner provided by Chapter 49J, Water Code, if the
exclusions are practicable, just, or desirable. 

(b)  Requires the board to 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.  NUMBER OF DIRECTORS; TERMS.  Provides that the district is
governed by a board of five directors and sets forth the terms of the
directors. 

SECTION 11.  QUALIFICATIONS OF DIRECTORS.  Sets forth qualifications
necessary to serve as a director. 

SECTION 12.  APPOINTMENT OF DIRECTORS.  Requires the commissioners court of
the county to appoint directors from persons recommended by the board or by
members of the commissioners court.  Provides that a person is appointed if
a majority of the commissioners of the county and the county judge vote to
appoint that person.  Authorizes a director to serve successive terms. 

SECTION 13.  REMOVAL OF DIRECTOR.  Authorizes the commissioners court to
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. 

SECTION 14.  BOARD VACANCY.  Requires a vacancy in the office of director
to be filled by appointment by the remaining members of the board for the
unexpired term. 

SECTION 15.  DIRECTOR'S BOND AND OATH.  Requires a director, as soon as
practicable after the director is appointed, to execute a $10,000 bond
payable to the district and conditioned on the faithful performance of the
director's duties.  Requires each director's bond to be approved by the
board, and requires each director to take the oath of office prescribed by
the constitution for public officers.  Requires the bond and oath to be
filed with the district and retained in its records. 

SECTION 16.  OFFICERS.  Requires directors, after they are appointed and
have qualified by executing a bond and taking the oath, to organize by
electing a president, a vice president, a secretary, and any other officers
the board considers necessary. 

SECTION 17.  COMPENSATION OF DIRECTORS; REIMBURSEMENT OF EXPENSES. Entitles
a director, in accordance with Section 49.060 (Fees of Office;
Reimbursement), Water Code, to compensation for service on the board and to
be reimbursed for necessary expenses incurred in carrying out the duties
and responsibilities of a director. 

SECTION 18.  QUORUM.  Provides that one-half of the directors constitutes a
quorum, and a concurrence of a majority of a quorum of directors is
required for any official action of the district. 

SECTION 19.  GENERAL POWERS OF DISTRICT.  Provides that 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, of the Texas Constitution,
including those conferred by Chapter 54 (Municipal Utility Districts),
Water Code, with respect to the purposes for which it is created.
Authorizes the district to contract and manage its affairs and funds for
any corporate purpose in accordance with Chapter 54, Water Code. 

SECTION 20.  SPECIFIC POWERS.  (a)  Provides that a district has the powers
necessary or convenient to carry out and effect the purposes and provisions
of this Act, including the powers granted in this section.   

 (b)  Provides that the district has perpetual succession.  

(c)  Authorizes the district to sue and be sued in courts of competent
jurisdiction, to institute and prosecute suits without giving security for
costs, and to appeal from a judgment without giving a supersedeas or cost
bond.   

(d)  Authorizes the district to incur liabilities, borrow money on terms
and conditions the board determines, and issue notes, bonds, or other
obligations.   

(e)  Authorizes the district to acquire and 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.   

(f)  Authorizes the district to acquire, construct, complete, develop, own,
operate, and maintain permanent improvements and provide services inside
and outside its boundaries.   
(g)  Authorizes the district to enter into agreements with a person or
entity, public or private, for the joint use of facilities, installations,
and property.   

(h)  Authorizes the district to enter 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 to perform all acts necessary for the full exercise of the powers
vested in it on terms and conditions and for the term the board may
determine to be advisable.   

(i)  Authorizes the district to acquire property under conditional sales
contracts, leases, equipment trust certificates, or any other form of
contract or  trust agreement.   

(j)  Authorizes the district to 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.  Authorizes a
district to 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.   

(k)  Authorizes the district to procure and pay premiums to insurers for
insurance of any type in amounts considered necessary or advisable by the
board. 

(l) Authorizes the district to do anything necessary, convenient, or
desirable to carry out the powers expressly granted or implied by this Act. 

SECTION 21.  USE AND ALTERATION OF LAND AND PUBLIC WAYS.  (a)  Authorizes
the district to construct all improvements and facilities necessary to
accomplish the purposes for which it was created on lands, whether publicly
or privately owned. 

(b)  Requires the district, before constructing an improvement or facility
on lands owned by the county, the state, a municipality, or another
political subdivision, to obtain approval from the relevant government
entity of the plans and specifications of such improvement or facility. 

(c)  Provides that 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 facilities or property, including a street, railroad track, bridge,
electric line, telephone or telegraph line, gas transmission or
distribution pipe, water, sanitary sewer or storm sewer pipe, cable
television line, or any other pipelines and any facilities or properties
relating to those pipelines, the relocation or other alteration is required
to be accomplished at the sole cost and expense of the district, and
damages that are suffered by the owners of the property or facilities are
required to be borne by the district. 

SECTION 22.  NO EMINENT DOMAIN POWER.  Prohibits the district from
exercising the power of eminent domain.  Authorizes the county to exercise
its power of eminent domain to implement a district facility or
improvement. 

SECTION 23.  MANAGEMENT BY BOARD OF DIRECTORS.  Provides that the
responsibility for the management, operation, and control of the property
belonging to the district is vested in the board. 

SECTION 24.  SPECIFIC POWERS AND DUTIES OF BOARD.  (a)  Sets forth specific
powers of the board regarding employment of staff, adopting a seal,
investing and managing money, and establishing an accounting system.  

(b)  Requires money of the district to be deposited in the depository bank
or banks designated by the board unless otherwise required by orders or
resolutions authorizing the issuance of the district's bonds or notes.
Provides that to the extent that money in the depository bank or banks is
not insured by the Federal Deposit Insurance Corporation, the money is
required to be secured in the manner provided by law for the security of
funds of counties.  Authorizes the board by resolution to authorize a
designated representative to supervise the substitution of securities
pledged to secure the district's money. 
 
(c)  Authorizes the board to adopt and enforce reasonable rules and
regulations governing the administration of the district and its programs
and projects. 

(d)  Authorizes the name of the district to be established or changed by
resolution of the board. 

SECTION 25.  HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT.  Authorizes
the board to appoint a hearings examiner to conduct any hearing called by
the board, including a hearing required by Chapter 395 (Financing Capital
Improvements Required by New Development in Municipalities, Counties, and
Certain Other Local Governments), Local Government Code.  Authorizes the
hearings examiner to be an employee of the district or a member of the
board.  Requires the hearing to be conducted in accordance with Chapter
2001 (Administrative Procedure), Government Code. 

SECTION 26.  GENERAL POWERS RELATING TO ASSESSMENTS.  (a)  Authorizes the
board to levy and collect an assessment for any purpose authorized by this
chapter only if the assessment is approved by the commissioners court. 

(b)  Authorizes the board to undertake an improvement project or service
that confers a special benefit on all or a definable part of the district.
Authorizes the board to 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.
Authorizes the district, if the board determines that there is a benefit to
the district, to provide an improvement or service to an area outside the
boundaries of the district. 

SECTION 27.  SPECIFIC POWERS RELATING TO ASSESSMENTS.  Authorizes an
improvement project or service provided by the district to include the
construction, acquisition, improvement, relocation, operation, maintenance,
or provision of:  certain facilities, improvements, plants, works,
appliances, equipment, measures and services that may protect beaches and
shores of the district from erosion, promote use of the public beach, and
protect and restore natural resources within the district; and  expenses
incurred in the establishment, administration, maintenance, and operation
of the district or any of its improvements, projects, or services. 

SECTION 28.  PROPOSED ASSESSMENTS.  Authorizes an improvement project or
service to be financed under this Act after notice of a hearing is given as
required by Section 30 and the board holds a public hearing on the
advisability of the improvement project or service and the proposed
assessment. 

SECTION 29.  PETITION REQUIRED.  Prohibits the board from financing an
improvement project or service under this chapter unless a written petition
has been filed with the board requesting the improvement project or
service.  Requires the petition to be signed by at least 25 persons who own
real property in the district if more than 25 persons own real property in
the district according to the most recent certified property tax rolls. 

SECTION 30.  NOTICE OF HEARING.  Requires notice of the hearing to be given
in a newspaper with general circulation in the county.  Requires the
publication to be made not later than the 30th day before the date of the
hearing.  Sets forth certain information that is required to be included in
the notice.  Requires written notice containing the information required by
this section to be mailed by certified mail, return receipt requested, not
later than the 30th day before the date of the hearing. Requires the notice
to be mailed 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. 

SECTION 31.  CONCLUSION OF HEARING; FINDINGS.  (a)  Authorizes a hearing on
the improvement project or service, whether conducted by the board or a
hearings examiner, to be adjourned from time to time. 

(b)  Requires the board, at the conclusion of the hearing, to make findings
by resolution or order relating to the advisability of the improvement
project or service, the nature 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)  Requires a hearings examiner, if one is appointed to conduct the
hearing, after conclusion of the hearing, to file with the board a report
stating the examiner's findings and conclusions. 

SECTION 32.  AREA TO BE ASSESSED.  (a)  Authorizes the area of the district
to be assessed according to the findings of the board to be the entire
district or any part of the district and to be less than the area proposed
in the notice of the hearing. 

(b)  Prohibits the area to be assessed, except as provided by Subsection
(c), from including 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)  Authorizes the owner of improvements constructed or land annexed to
the district after the district has imposed an assessment to waive the
right to notice and an assessment hearing and to agree to the imposition
and payment of an assessment at an agreed rate for improvements constructed
or land annexed to the district. 

SECTION 33.  OBJECTIONS; LEVY OF ASSESSMENT.  (a)  Requires the board to
hear and rule on all objections to each proposed assessment at a hearing on
proposed assessments, at any adjournment of the hearing or after
consideration of the hearings examiner's report. 

 (b)  Authorizes the board to amend a proposed assessment for any parcel.

(c)  Requires the board, after all objections have been heard and action
has been taken with regard to those objections, by order or resolution, to
levy the assessment as a special assessment on the property and specify the
method of payment of the assessment.  Authorizes the board to provide that
the assessment be paid in periodic installments, including interest. 

(d)  Requires periodic installments to be in amounts sufficient to meet
annual costs for services and improvements as provided by this chapter and
continue for the number of years required to retire indebtedness or pay for
the services to be rendered.  Authorizes the board to provide interest
charges or penalties for failure to make timely payment and also to impose
an amount to cover delinquencies and expenses of collection. 

(e)  Provides that if an assessment is imposed for more than one service or
improvement project, the board is authorized to provide that an assessment
collected for one improvement project or service may be borrowed to be used
for another improvement project or service.  

(f) Requires the board to 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 34.  APPORTIONMENT OF COST.  Requires the portion of the cost of an
improvement project or service to be assessed against the property in the
district to be apportioned by the board based on the special benefits
accruing to the property because of the improvement project or service.
Sets forth methods by which the cost may be assessed. 

SECTION 35.  ASSESSMENT ROLL.  Requires the board, if the total cost of an
improvement project or service is determined, to impose the assessment
against each parcel of land against which an assessment may be imposed in
the district.  Authorizes the board, with regard to an assessment for
services, to impose an annual assessment that may be lower but not higher
than the initial assessment. Requires the board to have an assessment roll
prepared showing the assessment against each property and the board's basis
for the assessment.  Requires the assessment roll to be filed with the
secretary of  the board or other officer who performs the function of
secretary and be open for public inspection. 

(a)  Provides that an assessment bears interest at a rate specified by the
board that may not exceed the interest rate permitted by Chapter 1204
(Interest Rate), Government Code. 

(b)  Requires 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 to be added to the first
installment.  Requires the interest or penalties on all unpaid installments
to be added to each subsequent installment until paid. 

(c)  Provides that 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 a
first and prior lien against the property assessed; are superior to any
other lien or claim other than a lien or claim for county, school district,
or municipal ad valorem taxes; and are the personal liability of and charge
against the owners of the property even if the owners are not named in the
assessment proceedings. 

(d)  Provides that the lien is effective from the date of the resolution of
the board imposing the assessment until the assessment is paid.  Authorizes
the board to enforce the lien in the same manner that the board may enforce
an ad valorem tax lien against real property.   

(e)  Authorizes the owner of any property assessed to pay at any time the
entire assessment against any lot or parcel with accrued interest to the
date of the payment. 

SECTION 36.  SUPPLEMENTAL ASSESSMENTS.  Authorizes the board, after notice
and hearing in the manner required for original assessments, to make
supplemental assessments to correct omissions or mistakes in the assessment
relating to the total cost of the improvement project or service or
covering delinquencies or costs of collection. 

SECTION 37.  APPEAL.  (a)  Authorizes a property owner, after determination
of an assessment, to appeal the assessment to the board.  Requires the
property owner to file a notice of appeal with the board not later than the
30th day after the date that the assessment is adopted.  Requires the board
to set a date to hear the appeal. 

(b)  Authorizes the property owner to appeal the board's decision on the
assessment to a court of competent jurisdiction.  Requires the property
owner to file notice of the appeal with the court of competent jurisdiction
not later than the 30th day after the date of the board's final decision
with respect to the assessment.   

(c)  Provides that failure to file either of the notices in the time
required by this section results in a loss of the right to appeal the
assessment.  

(d)  Authorizes the board, if an assessment against a parcel of land is set
aside by a court of competent jurisdiction, found excessive by the board,
or determined to be invalid by the board, to make a reassessment or new
assessment of the parcel. 

SECTION 38.  APPROVAL OF COMMISSIONERS COURT.  Provides that no assessment
or ad valorem tax, or a combination thereof, including any apportionment of
any assessment, shall be valid or enforceable unless approved by the
commissioners court. 

SECTION 39.  APPEAL OF ORDER.  Authorizes a person against whom an
assessment is made by board order, if notice has been given as required by
this subchapter, to appeal the assessment to a district court in the county
in the manner provided for the appeal of contested cases under Chapter
2001, Government Code.  Provides that review by the district court is by
trial de novo. 
 
SECTION 40.  EXEMPTIONS, PUBLIC UTILITIES.  Prohibits the district from
imposing an assessment on the property, equipment, or facilities of a
public utility.  Defines "utility." 

SECTION 41.  EXEMPTIONS:  GOVERNMENTAL ENTITIES; ASSESSMENTS.  Requires
payment of assessments by municipalities, counties, other political
subdivisions, and organizations exempt from federal income tax under
Section 501(c)(3), Internal Revenue Code of 1986, to be established by
contract.  Authorizes municipalities, counties, and other political
subdivisions to contract with the district under terms and conditions those
entities consider advisable to provide for the payment of assessments. 

SECTION 42.  TAX LEVY FOR BONDS. Require the board, at the time bonds
payable in whole or in part from taxes are issued, to levy a continuing
direct annual ad valorem tax for each year while all or part of the bonds
are outstanding on all taxable property within the district in sufficient
amount to pay the interest on the bonds as it becomes due and 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 date and to pay the
expenses of assessing and collecting the taxes. 

SECTION 43.  ESTABLISHMENT OF TAX RATE IN EACH YEAR.  (a)  Sets forth
information that the board is required to consider in determining the
actual rate to be levied in each year. 

(b)  Sets forth information that the board is authorized to consider in
determining the amount of anticipated taxes which should be levied each
year.  Requires the board to levy a tax in the first full year after
issuance of its first series of bonds. 

SECTION 44.  OPERATION AND MAINTENANCE TAX.  (a)  Authorizes the district
to levy 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)  Prohibits an operation and maintenance tax from being levied 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.  Authorizes the
board, after such a tax has been authorized by the district's voters, to
levy the tax and have it assessed and collected as other district taxes. 

(c)  Authorizes an operation and maintenance tax election to be held at the
same time and in conjunction with any other district election.  Authorizes
the election to be called by a separate election order or as part of any
other election order. 

(d)  Authorizes the proposition in an operation and maintenance tax
election to be for a specific maximum rate or for an unlimited rate. 

(e)  Provides that 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 are authorized to be used for any lawful purpose. 

SECTION 45.  FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND SERVICES. (a)
Provides that 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, leases, or any combination of those funds. 

(b)  Authorizes the board, during the progress of an improvement project or
service, to issue temporary notes to pay the costs of the improvement
project or service and issue bonds on completion. 
 
(c)  Authorizes the costs of more than one improvement project or service
to be paid from a single issue and sale of bonds without other
consolidation proceedings before the bond issue. 

SECTION 46.  BONDS, NOTES, OR OTHER OBLIGATIONS.  (a)  Authorizes the
board, for the payment of all or part of the costs of an improvement
project or service, to issue bonds, notes or other obligations in one or
more series payable from and secured by assessments, ad valorem taxes,
revenues, grants, gifts, contracts, leases, or any combination of those
funds.  Authorizes bonds, notes, or other obligations to be liens on all or
part of the revenue derived from improvements authorized under this
chapter, including installment payments of special assessments, ad valorem
taxes, or from any other source pledged to their payment. 

(b)  Grants the district the power to issue bonds and provides that they
shall be approved in the manner set forth in Chapter 375J (Bonds), Local
Government Code. 

(c)  Requires bonds, notes, or other obligations to be issued and approved
by the board of directors of the district without the consent of the
county, any municipality, or the commission. 

SECTION 47.  ELECTION TO APPROVE ISSUANCE OF BONDS.  (a)  Prohibits bonds
secured by assessments or ad valorem taxes, or a combination thereof, from
being 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)  Provides that bonds that are not secured by assessments or ad valorem
taxes, or a combination thereof, are not subject to the requirement of an
election and may be issued without an election. 

(c)  Requires an election required by this section to be conducted in
accordance with Chapter 375 (Municipal Management Districts in General),
Local Government Code. 

SECTION 48.  COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS CONTRACTS.
Provides that construction contracts of the district are subject to the
competitive bidding requirements of Chapter 49I (Construction, Equipment,
Materials, and Machinery Contracts), Water Code. 

SECTION 49.  SUPERSEDES OTHER LAW.  Provides that this Act states the
required procedures necessary for the district to award contracts and
supersedes any law or other requirement with respect to award of contracts. 

SECTION 50.  DISSOLUTION BY BOARD VOTE.  Authorizes the board, except as
provided by Section 53, by majority vote to dissolve the district at any
time. 

SECTION 51.  DISSOLUTION BY COUNTY ORDER.  Authorizes the commissioners
court of the county, except as provided by Section 53, by a vote of not
less than two-thirds, to adopt a resolution dissolving the district. 

SECTION 52.  LIMITATION.  Prohibits the district from being dissolved if
the district has any outstanding bonded indebtedness until that bonded
indebtedness is repaid or defeased in accordance with the order or
resolution authorizing the issuance of the bonds. 

SECTION 53.  CONTRACTS WITH DISTRICT.  (a)  Authorizes a municipality,
county, or other political subdivision of the state, without further
authorization, to contract with the district to implement a project of the
district or aid and assist the district in providing the services
authorized under this chapter. Authorizes a contract under this section to:
be for a period on which the parties agree; include terms on which the
parties agree; be payable from assessments or any other sources of revenue
that may be available for such purpose; or 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)  Authorizes the district to enter into a contract, lease, or agreement
with or make or accept grants and loans to or from certain entities. 

(c)  Authorizes the district to perform all acts necessary for the full
exercise of the powers vested in the district on terms and conditions and
for the term the board may determine to be advisable. 

SECTION 54.  Sets forth legislative findings regarding the fulfillment of
procedural requirements related to this Act. 

SECTION 55.  Sets forth spaces in which to provide the names of the members
of the initial board of directors of the district.  Sets forth terms for
the initial board members. 

SECTION 56.  EFFECTIVE DATE.  Effective date: upon passage or September 1,
2001.