SRC-MKV S.B. 1685 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1685
By: Jackson
Natural Resources
4/25/2001
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 1685 creates the Galveston Seawall Conservation District
with the powers and duties to impose taxes and issue bonds. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  LEGISLATIVE FINDINGS; PURPOSES.  (a)  Provides that the
Galveston Seawall Conservation District is created as a special district
under Section 59, Article XVI, Texas Constitution. 

(b)  Provides that 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, of the Texas Constitution, and to the
accomplishment of the other public purposes stated in this Act. 

(c)  Provides that 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)  Prohibits the creation of the district and this Act from being
interpreted to relieve the county or any municipality within the county
from providing services to the area of the district or to release the
county or the municipality within the county from the obligation it has to
provide services to the area.  Provides that the district is created to
supplement and not supplant the services of the county or any municipality
within the county. 

(e)  Provides that all of the land and other property to be included within
the boundaries of the district will be benefitted 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, of the Texas Constitution, and other powers granted under this
Act. 

 (f)  Provides that the district is created to serve a public use and
benefit. 

(g)  Provides that 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)  Provides that the creation of the district is necessary to protect the
state's natural resources through restoration and protection of natural
resources along the boundaries and within the district, including beach,
sand dune and shore nourishment, shore protection, vegetation,
stabilization, restoration and reclamation, circulation of sand, erosion
abatement, construction  and maintenance of bulkheads, jetties, levees,
breakwaters, barrier reefs, seawalls, geotubes, groins, t-heads,
crossovers, and navigation projects, and provision of all other 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. 

(i) Provides that 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)  Provides that each improvement project or service authorized by this
chapter is found and declared to carry out a public purpose. 
 
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.  Provides that 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.  Sets forth the boundaries of the
district. 
 
SECTION 6.  FINDINGS RELATING TO BOUNDARIES.  Sets forth findings relating
to the boundaries of the district.  
 
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 conducting 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.  Requires the board
to canvass the returns and declare the results at the earliest practicable
time. 

(e)  Requires 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 declare that the district is created and enter the results
in the minutes.  Requires that if a majority of the votes cast in the
election are against the creation of the district, the board declare that
the district was defeated and enter the results in its minutes.  Requires a
copy of the order to be filed with the 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 the
county. 
 
SECTION 8.  ANNEXATION.  Authorizes the district to annex land as provided
by Chapter 49J (Annexation of 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 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. 

SECTION 11.  QUALIFICATIONS OF DIRECTORS.  Provides that to be qualified to
serve as a director, a person must be at least 18 years old and a resident
of the district or an owner of property in the district. 
 
SECTION 12.  APPOINTMENT OF DIRECTORS.  (a)  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. 

 (b)  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.  (a)  Requires that, as soon as
practicable after a director is appointed, the director execute a $10,000
bond payable to the district and conditioned on the faithful performance of
the director's duties. 

(b)  Requires each director's bond to be approved by the board, and each
director to take the oath of office prescribed by the constitution for
public officers. 

 (c)  Requires the bond and oath to be filed with the district and retained
in its records. 
 
SECTION 16.  OFFICERS.  Requires that after directors are appointed and
have qualified by executing a bond and taking the oath, they 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 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, in accordance with Section 49.060 (Fees of
Office; Reimbursement), Water Code. 
 
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.  (a)  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. 

(b)  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 by grant, purchase, gift, devise,
lease, or otherwise, and to 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. 

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

(c)  Sets forth provisions requiring the district, in exercising any of the
powers conferred by this Act, to take the burden of such powers.  
 
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)  Authorizes the
board to carry out certain duties. 

(b)  Sets forth provisions relating to money of the district.

(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. (a)
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. 

(b)  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 to provide an improvement or service to an area
outside the boundaries of the district if the board determines that there
is a benefit to 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 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.  (a) 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. 

 (b)  Requires the notice to include certain information.
 
(c)  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 that at the conclusion of the hearing, the board 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 benefitted, the method of assessment,
and the method and time for payment of the assessment. 

(c)  Requires that if a hearings examiner is appointed to conduct the
hearing, after conclusion of the hearing, the hearings examiner 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 that at a
hearing on proposed assessments, at any adjournment of the hearing or after
consideration of the hearings  examiner's report, the board hear and rule
on all objections to each proposed assessment. 

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

(c)  Requires that after all objections have been heard and action has been
taken with regard to those objections, the board, by order or resolution,
levy the assessment as a special assessment on the property and specify the
method of payment of the assessment and 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)  Authorizes the board, if an assessment is imposed for more than one
service or improvement project, 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.
Authorizes the cost to be assessed in a certain manner. 
  
SECTION 35.  ASSESSMENT ROLL.  Sets forth provisions relating to the board
imposing an assessment against each parcel of land against which an
assessment may be imposed in the district.  

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 to make a reassessment or new assessment of the
parcel 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. 
 
SECTION 38.  APPROVAL OF COMMISSIONERS COURT.  Requires that no assessment
or ad valorem tax, or a combination thereof, including any apportionment of
any assessment, 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.  Provides that for purposes of this subsection, "utility"
means a person that provides to the public gas, electricity, telephone,
sewage, or water service. 
 
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.  Requires 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.  Requires the board to
consider certain things in determining the actual rate to be levied in each
year. 
  
(b)  Authorizes the board, in determining the amount of anticipated taxes
which should be levied each year, to 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 from other sources which are legally available to pay
principal of or interest or redemption price on the bonds.  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
certain funds. 

(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.  Requires that
after such a tax has been authorized by the district's voters, the board be
authorized 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)  Authorizes the funds to be used for any lawful purpose if the district
has any surplus operation and maintenance tax funds that are not needed for
the purposes for which they were collected. 
 
 SECTION 45.  FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND SERVICES. (a)
Authorizes the cost of any improvement project or service, including
interest during construction and costs of issuance of bonds, to be paid
from certain 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)  Provides that  the district shall have the power to issue bonds and
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 Texas Natural Resource Conservation
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 of the
district by majority vote to dissolve the district at any time, except as
provided by SECTION 53. 
 
SECTION 51.  DISSOLUTION BY COUNTY ORDER.  Authorizes the commissioners
court of the county by a vote of not less than two-thirds, to adopt a
resolution dissolving the district, except as provided by SECTION 53. 
 
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
meet certain requirements. 
  
(b)  Authorizes the district to enter into a contract, lease, or agreement
with or make or accept grants and loans to or from certain organizations or
groups. 
 
(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.
 
SECTION 55.  Sets forth the composition of the initial board of directors
of the Bolivar Conservation District. 

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