By Eiland H.B. No. 3474 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Galveston Seawall Conservation 1-3 District; providing the authority to impose taxes and issue bonds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. LEGISLATIVE FINDINGS; PURPOSES. (a) The 1-6 Galveston Seawall Conservation District is created as a special 1-7 district under SECTION 59, Article XVI, Texas Constitution. 1-8 (b) The creation of the district is declared to be essential 1-9 to the accomplishment of the purposes of Section 59, Article XVI, 1-10 and Section 52-a, Article III, of the Texas Constitution, and to 1-11 the accomplishment of the other public purposes stated in this Act. 1-12 (c) The creation of the district is necessary to promote, 1-13 develop, encourage, and maintain employment, commerce, economic 1-14 development, and the public welfare in the area of the district. 1-15 (d) The creation of the district and this Act may not be 1-16 interpreted to relieve the county or any municipality within the 1-17 county from providing services to the area of the district or to 1-18 release the county or the municipality within the county from the 1-19 obligation it has to provide services to the area. The district is 1-20 created to supplement and not supplant the services of the county 1-21 or any municipality within the county. 1-22 (e) All of the land and other property to be included within 1-23 the boundaries of the district will be benefited by the works and 2-1 projects that are to be accomplished and the services to be 2-2 provided by the district under powers conferred by Section 59, 2-3 Article XVI, and Section 52-a, Article III, of the Texas 2-4 Constitution, and other powers granted under this Act. 2-5 (f) The district is created to serve a public use and 2-6 benefit. 2-7 (g) The creation of the district is essential to further the 2-8 public purposes of development and diversification of the economy 2-9 of the state, the elimination of unemployment and underemployment, 2-10 and the development or expansion of commerce and is in the public 2-11 interest. 2-12 (h) The creation of the district is necessary to protect the 2-13 state's natural resources through restoration and protection of 2-14 natural resources along the boundaries and within the district, 2-15 including beach, sand dune and shore nourishment, shore protection, 2-16 vegetation, stabilization, restoration and reclamation, circulation 2-17 of sand, erosion abatement, construction and maintenance of 2-18 bulkheads, jetties, levees, breakwaters, barrier reefs, seawalls, 2-19 geotubes, groins, t-heads, crossovers, and navigation projects, and 2-20 provision of all other facilities, improvements, plants, works, 2-21 appliances, equipment, measures and services that may protect 2-22 beaches and shores of the district from erosion, promote use of the 2-23 public beach, and protect and restore natural resources within the 2-24 district. 2-25 (i) The creation of the district is necessary to promote, 2-26 develop, and encourage navigation along the state's coastal waters, 3-1 bays, and inlets, including the deepening and widening of 3-2 navigation channels. 3-3 (j) Each improvement project or service authorized by this 3-4 chapter is found and declared to carry out a public purpose. 3-5 SECTION 2. CONSTRUCTION OF ACT. (a) This Act shall be 3-6 liberally construed in conformity with the findings and purposes in 3-7 Section 1. 3-8 (b) If any provision of general law is in conflict or 3-9 inconsistent with this Act, this Act prevails. Any general law not 3-10 in conflict or inconsistent with this Act is adopted and 3-11 incorporated by reference. 3-12 SECTION 3. DEFINITIONS. In this chapter: 3-13 (1) "Board" means a board of directors of the 3-14 district. 3-15 (2) "Bond" means any type of interest-bearing 3-16 obligation, including a bond, note, bond anticipation note, 3-17 certificate of participation, lease, contract, or other evidence of 3-18 indebtedness. 3-19 (3) "Commission" means the Texas Natural Resource 3-20 Conservation Commission. 3-21 (4) "County" means Galveston County. 3-22 (5) "District" means the Bolivar Conservation 3-23 District. 3-24 SECTION 4. GOVERNMENTAL AGENCY; TORT CLAIMS. (a) The 3-25 district is a governmental agency, a body politic and corporate, 3-26 and a political subdivision of the state. 4-1 (b) The district is a unit of government for purposes of 4-2 Chapter 101, Civil Practice and Remedies Code, and operations of 4-3 the district are considered to be essential governmental functions 4-4 and not proprietary functions for all purposes, including the 4-5 application of the Texas Tort Claims Act. 4-6 SECTION 5. BOUNDARIES OF THE DISTRICT. The district includes 4-7 all of the territory contained within the following described land: 4-8 BEGINNING at the intersection of the southerly projection of the 4-9 centerline of 103rd street in the City of Galveston, Texas and the 4-10 mean high tide line of the Gulf of Mexico on Galveston Island; 4-11 Thence along the centerline of 103rd street and the southerly and 4-12 northerly projection thereof in a northerly direction to the 4-13 intersection of such line with the centerline of the Intracoastal 4-14 Waterway; 4-15 Thence along the centerline of the Intracoastal Waterway in an 4-16 easterly direction to the intersection of such line with the 4-17 centerline of the Texas City Channel; 4-18 Thence along the centerline of the Texas City Channel in a 4-19 southerly direction to the intersection of such line with the 4-20 centerline of the Inner Bar Channel (of the Texas City Channel and 4-21 the Houston Ship Channel); 4-22 Thence along the centerline of the Inner Bar Channel in a southerly 4-23 direction to the intersection of such line with the easterly 4-24 projection of the centerline of Seawall Boulevard in the City of 4-25 Galveston, Texas; 4-26 Thence with the easterly projection of the centerline of Seawall 5-1 Boulevard in a westerly direction to the intersection of such line 5-2 with the mean high tide line on Galveston Island; and 5-3 Thence with the man high tide line on Galveston Island in a 5-4 southerly and westerly direction to the PLACE OF BEGINNING. 5-5 SECTION 6. FINDINGS RELATING TO BOUNDARIES. The boundaries 5-6 and field notes of the district form a closure. If a mistake is 5-7 made in the field notes or in copying the field notes in the 5-8 legislative process, it does not affect the district's: 5-9 (1) organization, existence, or validity; 5-10 (2) right to issue any type of bond for the purposes 5-11 for which the district is created or to pay the principal of and 5-12 interest on a bond; 5-13 (3) right to impose or collect an assessment or ad 5-14 valorem taxes; or 5-15 (4) legality or operation. 5-16 SECTION 7. CONFIRMATION ELECTION. (a) Before issuing any 5-17 bonds or other obligations or levying an assessment or ad valorem 5-18 taxes or conducing any other activity, an election shall be held 5-19 within the boundaries of the district to determine if the district 5-20 shall be created. 5-21 (b) Notice of the confirmation election shall state the day 5-22 and place or places for holding the election and the propositions 5-23 to be voted on. 5-24 (c) The ballots for the confirmation election shall be 5-25 printed to provide for voting "For District" and "Against 5-26 District." 6-1 (d) Immediately after the confirmation election, the 6-2 presiding judge shall take returns of the results to the board. 6-3 The board shall canvass the returns and declare the results at the 6-4 earliest practicable time. 6-5 (e) If a majority of the votes cast by qualified voters 6-6 within the district in the election favor the creation of the 6-7 district, then the board shall declare that the district is created 6-8 and enter the results in the minutes. If a majority of the votes 6-9 cast in the election are against the creation of the district, the 6-10 board shall declare that the district was defeated and enter the 6-11 results in its minutes. A copy of the order shall be filed with 6-12 the commission. 6-13 (f) The board may call more than one confirmation election. 6-14 (g) The order canvassing the results of the confirmation 6-15 election shall contain a description of the district's boundaries 6-16 and shall be filed with the executive director of the commission 6-17 and in the deed records of the county. 6-18 SECTION 8. ANNEXATION. The district may annex land as 6-19 provided by Subchapter J, Chapter 49, Water Code, subject to the 6-20 approval of the commissioners court of the county. 6-21 SECTION 9. EXCLUDING TERRITORY. (a) At any time during 6-22 which the district does not have outstanding bonds, the board on 6-23 its own motion may call a hearing on the question of the exclusion 6-24 of land from the district in the manner provided by Subchapter J, 6-25 Chapter 49, Water Code, if the exclusions are practicable, just, or 6-26 desirable. 7-1 (b) The board shall call a hearing on the exclusion of land 7-2 or other property from the district if a landowner or property 7-3 owner in the district files with the secretary of the board a 7-4 written petition requesting the hearing before the issuance of 7-5 bonds. 7-6 SECTION 10. NUMBER OF DIRECTORS; TERMS. The district is 7-7 governed by a board of five directors who serve staggered terms of 7-8 four years, with three directors' terms expiring June 1 of an 7-9 odd-numbered year and two directors' terms expiring June 1 of the 7-10 following odd-numbered year. 7-11 SECTION 11. QUALIFICATIONS OF DIRECTORS. To be qualified to 7-12 serve as a director, a person must be at least 18 years old and: 7-13 (1) a resident of the district; or 7-14 (2) an owner of property in the district. 7-15 SECTION 12. APPOINTMENT OF DIRECTORS. (a) The commissioners 7-16 court of the county shall appoint directors from persons 7-17 recommended by the board or by members of the commissioners court. 7-18 A person is appointed if a majority of the commissioners of the 7-19 county and the county judge vote to appoint that person. 7-20 (b) A director may serve successive terms. 7-21 SECTION 13. REMOVAL OF DIRECTOR. The commissioners court may 7-22 remove a director for misconduct or failure to carry out the 7-23 director's duties or for any other reason on petition by a majority 7-24 of the remaining directors or a majority of the commissioners court 7-25 and after notice and hearing. 7-26 SECTION 14. BOARD VACANCY. A vacancy in the office of 8-1 director shall be filled by appointment by the remaining members of 8-2 the board for the unexpired term. 8-3 SECTION 15. DIRECTOR'S BOND AND OATH. (a) As soon as 8-4 practicable after a director is appointed, the director shall 8-5 execute a $10,000 bond payable to the district and conditioned on 8-6 the faithful performance of the director's duties. 8-7 (b) Each director's bond must be approved by the board, and 8-8 each director shall take the oath of office prescribed by the 8-9 constitution for public officers. 8-10 (c) The bond and oath shall be filed with the district and 8-11 retained in its records. 8-12 SECTION 16. OFFICERS. After directors are appointed and have 8-13 qualified by executing a bond and taking the oath, they shall 8-14 organize by electing a president, a vice president, a secretary, 8-15 and any other officers the board considers necessary. 8-16 SECTION 17. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF 8-17 EXPENSES. In accordance with Section 49.060, Water Code, a 8-18 director is entitled to compensation for service on the board and 8-19 is entitled to be reimbursed for necessary expenses incurred in 8-20 carrying out the duties and responsibilities of a director. 8-21 SECTION 18. QUORUM. One-half of the directors constitutes a 8-22 quorum, and a concurrence of a majority of a quorum of directors is 8-23 required for any official action of the district. 8-24 SECTION 19. GENERAL POWERS OF DISTRICT. (a) The district 8-25 has the rights, powers, privileges, authority, and functions 8-26 conferred by the general law of this state applicable to 9-1 conservation and reclamation districts created under Section 59, 9-2 Article XVI, of the Texas Constitution, including those conferred 9-3 by Chapter 54, Water Code, with respect to the purposes for which 9-4 it is created. 9-5 (b) The district may contract and manage its affairs and 9-6 funds for any corporate purpose in accordance with Chapter 54, 9-7 Water Code. 9-8 SECTION 20. SPECIFIC POWERS. (a) A district has the powers 9-9 necessary or convenient to carry out and effect the purposes and 9-10 provisions of this Act, including the powers granted in this 9-11 section. 9-12 (b) The district has perpetual succession. 9-13 (c) The district may sue and be sued in courts of competent 9-14 jurisdiction, may institute and prosecute suits without giving 9-15 security for costs, and may appeal from a judgment without giving a 9-16 supersedeas or cost bond. 9-17 (d) The district may incur liabilities, borrow money on 9-18 terms and conditions the board determines, and issue notes, bonds, 9-19 or other obligations. 9-20 (e) The district may acquire by grant, purchase, gift, 9-21 devise, lease, or otherwise, and may hold, use, sell, lease, or 9-22 dispose of real and personal property, licenses, patents, rights, 9-23 and interests necessary, convenient, or useful for the full 9-24 exercise of any of its powers under this Act. 9-25 (f) The district may acquire, construct, complete, develop, 9-26 own, operate, and maintain permanent improvements and provide 10-1 services inside and outside its boundaries. 10-2 (g) The district may enter into agreements with a person or 10-3 entity, public or private, for the joint use of facilities, 10-4 installations, and property. 10-5 (h) The district may enter contracts, leases, and agreements 10-6 with and accept grants and loans from the United States and its 10-7 departments and agencies, the state and its agencies, counties, 10-8 municipalities, and political subdivisions, public or private 10-9 corporations, and other persons and may perform all acts necessary 10-10 for the full exercise of the powers vested in it on terms and 10-11 conditions and for the term the board may determine to be 10-12 advisable. 10-13 (i) The district may acquire property under conditional 10-14 sales contracts, leases, equipment trust certificates, or any other 10-15 form of contract or trust agreement. 10-16 (j) The district may sell, lease, convey, or otherwise 10-17 dispose of any of its rights, interests, or properties that are not 10-18 needed for or, in the case of leases, that are not consistent with, 10-19 the efficient operation and maintenance of the district's 10-20 improvements. A district may sell, lease, or otherwise dispose of 10-21 any surplus material or personal or real property not needed for 10-22 its requirements or for the purpose of carrying out its powers 10-23 under this Act. 10-24 (k) The district may procure and pay premiums to insurers 10-25 for insurance of any type in amounts considered necessary or 10-26 advisable by the board. 11-1 (l) The district may do anything necessary, convenient, or 11-2 desirable to carry out the powers expressly granted or implied by 11-3 this Act. 11-4 SECTION 21. USE AND ALTERATION OF LAND AND PUBLIC WAYS. 11-5 (a) The district may construct all improvements and facilities 11-6 necessary to accomplish the purposes for which it was created on 11-7 lands, whether publicly or privately owned. 11-8 (b) Before constructing an improvement or facility on lands 11-9 owned by the county, the state, a municipality, or another 11-10 political subdivision, the district must obtain approval from the 11-11 relevant government entity of the plans and specifications of such 11-12 improvement or facility. 11-13 (c) If the district, in exercising any of the powers 11-14 conferred by this Act, requires the relocation, adjustment, 11-15 raising, lowering, rerouting, or charging the grade of or altering 11-16 the construction of any street, alley, highway, overpass, 11-17 underpass, or road, any railroad track, bridge, or other facilities 11-18 or property, any electric lines, conduits, or other facilities or 11-19 property, any telephone or telegraph lines, conduits, or other 11-20 facilities or property, any gas transmission or distribution pipes, 11-21 pipelines, mains, or other facilities or property, any water, 11-22 sanitary sewer or storm sewer pipes, pipelines, mains, or other 11-23 facilities, or property, any cable television lines, cables, 11-24 conduits, or other facilities or property, or any other pipelines 11-25 and any facilities or properties relating to those pipelines, the 11-26 relocation, adjustment, raising, lowering, rerouting, or changing 12-1 of grade, or altering of construction must be accomplished at the 12-2 sole cost and expense of the district, and damages that are 12-3 suffered by the owners of the property or facilities shall be borne 12-4 by the district. 12-5 SECTION 22. NO EMINENT DOMAIN POWER. The district may not 12-6 exercise the power of eminent domain. The county may exercise its 12-7 power of eminent domain to implement a district facility or 12-8 improvement. 12-9 SECTION 23. MANAGEMENT BY BOARD OF DIRECTORS. The 12-10 responsibility for the management, operation, and control of the 12-11 property belonging to the district is vested in the board. 12-12 SECTION 24. SPECIFIC POWERS AND DUTIES OF BOARD. (a) The 12-13 board may: 12-14 (1) employ all persons, firms, partnerships, or 12-15 corporations considered necessary by the board for the conduct of 12-16 the affairs of the district, including a general manager, 12-17 bookkeepers, auditors, engineers, attorneys, financial advisers, 12-18 peace or traffic control officers, architects, and operating or 12-19 management companies and prescribe the duties, tenure, and 12-20 compensation of each; 12-21 (2) dismiss employees; 12-22 (3) adopt a seal for the district; 12-23 (4) invest the district's money in any investments 12-24 authorized by Subchapter A, Chapter 2256, Government Code, and 12-25 provide, by resolution, that an authorized representative manage 12-26 the district's funds and invest and reinvest the money on terms the 13-1 board considers advisable; 13-2 (5) establish a fiscal year for the district; 13-3 (6) establish a complete system of accounts for the 13-4 district and each year shall have prepared an audit of the 13-5 district's affairs, which shall be open to public inspection, by an 13-6 independent certified public accountant or a firm of independent 13-7 certified public accountants; and 13-8 (7) designate one or more banks to serve as the 13-9 depository bank or banks. 13-10 (b) Money of the district shall be deposited in the 13-11 depository bank or banks unless otherwise required by orders or 13-12 resolutions authorizing the issuance of the district's bonds or 13-13 notes. To the extent that money in the depository bank or banks is 13-14 not insured by the Federal Deposit Insurance Corporation, the money 13-15 must be secured in the manner provided by law for the security of 13-16 funds of counties. The board by resolution may authorize a 13-17 designated representative to supervise the substitution of 13-18 securities pledged to secure the district's money. 13-19 (c) The board may adopt and enforce reasonable rules and 13-20 regulations governing the administration of the district and its 13-21 programs and projects. 13-22 (d) The name of the district may be established or changed 13-23 by resolution of the board. 13-24 SECTION 25. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT. 13-25 (a) The board may appoint a hearings examiner to conduct any 13-26 hearing called by the board, including a hearing required by 14-1 Chapter 395, Local Government Code. The hearings examiner may be 14-2 an employee of the district or a member of the board. 14-3 (b) The hearing shall be conducted in accordance with 14-4 Chapter 2001, Government Code. 14-5 SECTION 26. GENERAL POWERS RELATING TO ASSESSMENTS. (a) The 14-6 board may levy and collect an assessment for any purpose authorized 14-7 by this chapter only if the assessment is approved by the 14-8 commissioners court. 14-9 (b) The board may undertake an improvement project or 14-10 service that confers a special benefit on all or a definable part 14-11 of the district. The board may impose and collect a special 14-12 assessment on property in that area, based on the benefit conferred 14-13 by the improvement project or service, to pay all or part of the 14-14 cost of the project or service. If the board determines that there 14-15 is a benefit to the district, the district may provide an 14-16 improvement or service to an area outside the boundaries of the 14-17 district. 14-18 SECTION 27. SPECIFIC POWERS RELATING TO ASSESSMENTS. An 14-19 improvement project or service provided by the district may include 14-20 the construction, acquisition, improvement, relocation, operation, 14-21 maintenance, or provision of: 14-22 (1) Beach, sand dune and shore nourishment, shore 14-23 protection, vegetation, stabilization, restoration and reclamation, 14-24 circulation of sand, erosion abatement, construction and 14-25 maintenance of bulkheads, jetties, levees, breakwaters, barrier 14-26 reefs, seawalls, geotubes, groins, t-heads, crossovers, and 15-1 navigation projects, and provision of all other facilities, 15-2 improvements, plants, works, appliances, equipment, measures and 15-3 services that may protect beaches and shores of the district from 15-4 erosion, promote use of the public beach, and protect and restore 15-5 natural resources within the district; and 15-6 (2) expenses incurred in the establishment, 15-7 administration, maintenance, and operation of the district or any 15-8 of its improvements, projects, or services. 15-9 SECTION 28. PROPOSED ASSESSMENTS. An improvement project or 15-10 service may be financed under this Act after notice of a hearing is 15-11 given as required by Section 30 and the board holds a public 15-12 hearing on the advisability of the improvement project or service 15-13 and the proposed assessment. 15-14 SECTION 29. PETITION REQUIRED. The board may not finance an 15-15 improvement project or service under this chapter unless a written 15-16 petition has been filed with the board requesting the improvement 15-17 project or service. The petition must be signed by at least 25 15-18 persons who own real property in the district if more than 25 15-19 persons own real property in the district according to the most 15-20 recent certified property tax rolls. 15-21 SECTION 30. NOTICE OF HEARING. (a) Notice of the hearing 15-22 shall be given in a newspaper with general circulation in the 15-23 county. The publication must be made not later than the 30th day 15-24 before the date of the hearing. 15-25 (b) The notice must include: 15-26 (1) the time and place of the hearing; 16-1 (2) the general nature of the proposed improvement 16-2 project or service; 16-3 (3) the estimated cost of the improvement project or 16-4 service, including interest during construction and associated 16-5 financing costs; and 16-6 (4) the proposed method of assessment. 16-7 (c) Written notice containing the information required by 16-8 this section shall be mailed by certified mail, return receipt 16-9 requested, not later than the 30th day before the date of the 16-10 hearing. The notice shall be mailed to each property owner in the 16-11 district who will be subject to assessment at the current address 16-12 of the property to be assessed as reflected on the tax rolls. 16-13 SECTION 31. CONCLUSION OF HEARING; FINDINGS. (a) A hearing 16-14 on the improvement project or service, whether conducted by the 16-15 board or a hearings examiner, may be adjourned from time to time. 16-16 (b) At the conclusion of the hearing, the board shall make 16-17 findings by resolution or order relating to the advisability of the 16-18 improvement project or service, the nature of the improvement 16-19 project or service, the estimated cost, the area benefited, the 16-20 method of assessment, and the method and time for payment of the 16-21 assessment. 16-22 (c) If a hearings examiner is appointed to conduct the 16-23 hearing, after conclusion of the hearing, the hearings examiner 16-24 shall file with the board a report stating the examiner's findings 16-25 and conclusions. 16-26 SECTION 32. AREA TO BE ASSESSED. (a) The area of the 17-1 district to be assessed according to the findings of the board may 17-2 be the entire district or any part of the district and may be less 17-3 than the area proposed in the notice of the hearing. 17-4 (b) Except as provided by Subsection (c), the area to be 17-5 assessed may not include property that is not within the district 17-6 boundaries at the time of the hearing unless there is an additional 17-7 hearing preceded by the required notice. 17-8 (c) The owner of improvements constructed or land annexed to 17-9 the district after the district has imposed an assessment may waive 17-10 the right to notice and an assessment hearing and may agree to the 17-11 imposition and payment of an assessment at an agreed rate for 17-12 improvements constructed or land annexed to the district. 17-13 SECTION 33. OBJECTIONS; LEVY OF ASSESSMENT. (a) At a 17-14 hearing on proposed assessments, at any adjournment of the hearing 17-15 or after consideration of the hearings examiner's report, the board 17-16 shall hear and rule on all objections to each proposed assessment. 17-17 (b) The board may amend a proposed assessment for any 17-18 parcel. 17-19 (c) After all objections have been heard and action has been 17-20 taken with regard to those objections, the board, by order or 17-21 resolution, shall levy the assessment as a special assessment on 17-22 the property and shall specify the method of payment of the 17-23 assessment and may provide that the assessment be paid in periodic 17-24 installments, including interest. 17-25 (d) Periodic installments must be in amounts sufficient to 17-26 meet annual costs for services and improvements as provided by this 18-1 chapter and continue for the number of years required to retire 18-2 indebtedness or pay for the services to be rendered. The board may 18-3 provide interest charges or penalties for failure to make timely 18-4 payment and also may impose an amount to cover delinquencies and 18-5 expenses of collection. 18-6 (e) If an assessment is imposed for more than one service or 18-7 improvement project, the board may provide that an assessment 18-8 collected for one improvement project or service may be borrowed to 18-9 be used for another improvement project or service. 18-10 (f) The board shall establish a procedure for the 18-11 distribution or use of any assessment in excess of those necessary 18-12 to finance the improvement project or service for which the 18-13 assessment was collected. 18-14 SECTION 34. APPORTIONMENT OF COST. The portion of the cost 18-15 of an improvement project or service to be assessed against the 18-16 property in the district shall be apportioned by the board based on 18-17 the special benefits accruing to the property because of the 18-18 improvement project or service. The cost may be assessed: 18-19 (1) equally by front foot or square foot of land area 18-20 against all property in the district; 18-21 (2) against property according to the value of the 18-22 property as determined by the board, with or without regard to 18-23 structures or other improvements on the property; or 18-24 (3) on any other reasonable assessment plan that 18-25 results in imposing fair and equitable shares of the cost on 18-26 property similarly benefited. 19-1 SECTION 35. ASSESSMENT ROLL. If the total cost of an 19-2 improvement project or service is determined, the board shall 19-3 impose the assessment against each parcel of land against which an 19-4 assessment may be imposed in the district. With regard to an 19-5 assessment for services, the board may impose an annual assessment 19-6 that may be lower but not higher than the initial assessment. The 19-7 board shall have an assessment roll prepared showing the assessment 19-8 against each property and the board's basis for the assessment. 19-9 The assessment roll shall be filed with the secretary of the board 19-10 or other officer who performs the function of secretary and be open 19-11 for public inspection. 19-12 (a) An assessment bears interest at a rate specified by the 19-13 board that may not exceed the interest rate permitted by Chapter 19-14 1204, Government Code. 19-15 (b) Interest on an assessment between the effective date of 19-16 the order or resolution imposing the assessment and the date the 19-17 first installment and any related penalty is payable shall be added 19-18 to the first installment. The interest or penalties on all unpaid 19-19 installments shall be added to each subsequent installment until 19-20 paid. 19-21 (c) Assessments, reassessments or assessments resulting from 19-22 an addition to or correction of the assessment roll by the 19-23 district, penalties and interest on an assessment or reassessment, 19-24 expenses of collection, and reasonable attorney's fees incurred by 19-25 the district: 19-26 (1) are a first and prior lien against the property 20-1 assessed; 20-2 (2) are superior to any other lien or claim other than 20-3 a lien or claim for county, school district, or municipal ad 20-4 valorem taxes; and 20-5 (3) are the personal liability of and charge against 20-6 the owners of the property even if the owners are not named in the 20-7 assessment proceedings. 20-8 (d) The lien is effective from the date of the resolution of 20-9 the board imposing the assessment until the assessment is paid. The 20-10 board may enforce the lien in the same manner that the board may 20-11 enforce an ad valorem tax lien against real property. 20-12 (e) The owner of any property assessed may pay at any time 20-13 the entire assessment against any lot or parcel with accrued 20-14 interest to the date of the payment. 20-15 SECTION 36. SUPPLEMENTAL ASSESSMENTS. After notice and 20-16 hearing in the manner required for original assessments, the board 20-17 may make supplemental assessments to correct omissions or mistakes 20-18 in the assessment: 20-19 (1) relating to the total cost of the improvement 20-20 project or service; or 20-21 (2) covering delinquencies or costs of collection. 20-22 SECTION 37. APPEAL. (a) After determination of an 20-23 assessment, a property owner may appeal the assessment to the 20-24 board. The property owner must file a notice of appeal with the 20-25 board not later than the 30th day after the date that the 20-26 assessment is adopted. The board shall set a date to hear the 21-1 appeal. 21-2 (b) The property owner may appeal the board's decision on 21-3 the assessment to a court of competent jurisdiction. The property 21-4 owner must file notice of the appeal with the court of competent 21-5 jurisdiction not later than the 30th day after the date of the 21-6 board's final decision with respect to the assessment. 21-7 (c) Failure to file either of the notices in the time 21-8 required by this section results in a loss of the right to appeal 21-9 the assessment. 21-10 (d) If an assessment against a parcel of land is set aside 21-11 by a court of competent jurisdiction, found excessive by the board, 21-12 or determined to be invalid by the board, the board may make a 21-13 reassessment or new assessment of the parcel. 21-14 SECTION 38. APPROVAL OF COMMISSIONERS COURT. No assessment 21-15 or ad valorem tax, or a combination thereof, including any 21-16 apportionment of any assessment, shall be valid or enforceable 21-17 unless approved by the commissioners court. 21-18 SECTION 39. APPEAL OF ORDER. If notice has been given as 21-19 required by this subchapter, a person against whom an assessment is 21-20 made by board order may appeal the assessment to a district court 21-21 in the county in the manner provided for the appeal of contested 21-22 cases under Chapter 2001, Government Code. Review by the district 21-23 court is by trial de novo. 21-24 SECTION 40. EXEMPTIONS, PUBLIC UTILITIES. The district may 21-25 not impose an assessment on the property, equipment, or facilities 21-26 of a public utility. For purposes of this subsection, "utility" 22-1 means a person that provides to the public gas, electricity, 22-2 telephone, sewage, or water service. 22-3 SECTION 41. EXEMPTIONS: GOVERNMENTAL ENTITIES; ASSESSMENTS. 22-4 Payment of assessments by municipalities, counties, other political 22-5 subdivisions, and organizations exempt from federal income tax 22-6 under Section 501(c)(3), Internal Revenue Code of 1986, shall be 22-7 established by contract. Municipalities, counties, and other 22-8 political subdivisions may contract with the district under terms 22-9 and conditions those entities consider advisable to provide for the 22-10 payment of assessments. 22-11 SECTION 42. TAX LEVY FOR BONDS. At the time bonds payable in 22-12 whole or in part from taxes are issued, the board shall levy a 22-13 continuing direct annual ad valorem tax for each year while all or 22-14 part of the bonds are outstanding on all taxable property within 22-15 the district in sufficient amount to pay the interest on the bonds 22-16 as it becomes due and to create a sinking fund for the payment of 22-17 the principal of the bonds when due or the redemption price at any 22-18 earlier required redemption date and to pay the expenses of 22-19 assessing and collecting the taxes. 22-20 SECTION 43. ESTABLISHMENT OF TAX RATE IN EACH YEAR. (a) In 22-21 determining the actual rate to be levied in each year, the board 22-22 shall consider among other things: 22-23 (1) the amount which should be levied for maintenance 22-24 and operation purposes, if a maintenance tax has been authorized; 22-25 (2) the amount which should be levied for the payment 22-26 of principal, interest, and redemption price of each series of 23-1 bonds or notes payable in whole or in part from taxes; 23-2 (3) the amount which should be levied for the purpose 23-3 of paying all other contractual obligations of the district payable 23-4 in whole or in part from taxes; and 23-5 (4) the percentage of anticipated tax collections and 23-6 the cost of collecting the taxes. 23-7 (b) In determining the amount of anticipated taxes which 23-8 should be levied each year, the board may consider whether proceeds 23-9 from the sale of bonds have been placed in escrow to pay interest 23-10 during construction and whether the board reasonably expects to 23-11 have revenue or receipts available from other sources which are 23-12 legally available to pay principal of or interest or redemption 23-13 price on the bonds. The board shall levy a tax in the first full 23-14 year after issuance of its first series of bonds. 23-15 SECTION 44. OPERATION AND MAINTENANCE TAX. (a) The district 23-16 may levy and collect a tax for operation and maintenance purposes, 23-17 including funds for planning, constructing, acquiring, maintaining, 23-18 repairing, and operating all necessary land, plants, works, 23-19 facilities, improvements, appliances, and equipment of the district 23-20 and for paying costs of proper services, engineering and legal 23-21 fees, and organization and administrative expenses. (b) An 23-22 operation and maintenance tax may not be levied by the district 23-23 until it is approved by a majority of the qualified voters within 23-24 the district voting at an election held for that purpose. After 23-25 such a tax has been authorized by the district=s voters, the board 23-26 shall be authorized to levy the tax and have it assessed and 24-1 collected as other district taxes. 24-2 (c) An operation and maintenance tax election may be held at 24-3 the same time and in conjunction with any other district election. 24-4 The election may be called by a separate election order or as part 24-5 of any other election order. 24-6 (d) The proposition in an operation and maintenance tax 24-7 election may be for a specific maximum rate or for an unlimited 24-8 rate. 24-9 (e) If the district has any surplus operation and 24-10 maintenance tax funds that are not needed for the purposes for 24-11 which they were collected, the funds may be used for any lawful 24-12 purpose. 24-13 SECTION 45. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND 24-14 SERVICES. (a) The cost of any improvement project or service, 24-15 including interest during construction and costs of issuance of 24-16 bonds, may be paid from general or available funds, ad valorem 24-17 taxes, assessments, or the proceeds of bonds payable from revenues, 24-18 ad valorem assessments, grants, gifts, contracts, leases, or any 24-19 combination of those funds. 24-20 (b) During the progress of an improvement project or 24-21 service, the board may issue temporary notes to pay the costs of 24-22 the improvement project or service and issue bonds on completion. 24-23 (c) The costs of more than one improvement project or 24-24 service may be paid from a single issue and sale of bonds without 24-25 other consolidation proceedings before the bond issue. 24-26 SECTION 46. BONDS, NOTES, OR OTHER OBLIGATIONS. (a) For the 25-1 payment of all or part of the costs of an improvement project or 25-2 service, the board may issue bonds, notes or other obligations in 25-3 one or more series payable from and secured by assessments, ad 25-4 valorem taxes, revenues, grants, gifts, contracts, leases, or any 25-5 combination of those funds. Bonds, notes, or other obligations may 25-6 be liens on all or part of the revenue derived from improvements 25-7 authorized under this chapter, including installment payments of 25-8 special assessments, ad valorem taxes, or from any other source 25-9 pledged to their payment. 25-10 (b) The district shall have the power to issue bonds and 25-11 they shall be approved in the manner set forth in Subchapter J, 25-12 Chapter 375, Local Government Code. 25-13 (c) Bonds, notes, or other obligations shall be issued and 25-14 approved by the board of directors of the district without the 25-15 consent of the county, any municipality, or the Texas Natural 25-16 Resource Conservation Commission. 25-17 SECTION 47. ELECTION TO APPROVE ISSUANCE OF BONDS. (a) 25-18 Bonds secured by assessments or ad valorem taxes, or a combination 25-19 thereof may not be issued unless the bonds are approved by a 25-20 majority of the qualified voters in the district voting at an 25-21 election held for that purpose. 25-22 (b) Bonds that are not secured by assessments or ad valorem 25-23 taxes, or a combination thereof, are not subject to the requirement 25-24 of an election and may be issued without an election. 25-25 (c) An election required by this section shall be conducted 25-26 in accordance with Chapter 375, Local Government Code. 26-1 SECTION 48. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS 26-2 CONTRACTS. Construction contracts of the district are subject to 26-3 the competitive bidding requirements of Subchapter I, Chapter 49, 26-4 Water Code. 26-5 SECTION 49. SUPERSEDES OTHER LAW. This Act states the 26-6 required procedures necessary for the district to award contracts 26-7 and supersedes any law or other requirement with respect to award 26-8 of contracts. 26-9 SECTION 50. DISSOLUTION BY BOARD VOTE. Except as provided by 26-10 Section 53, the board of the district by majority vote may dissolve 26-11 the district at any time. 26-12 SECTION 51. DISSOLUTION BY COUNTY ORDER. Except as provided 26-13 by Section 53, the commissioners court of the county by a vote of 26-14 not less than two-thirds, may adopt a resolution dissolving the 26-15 district. 26-16 SECTION 52. LIMITATION. The district may not be dissolved if 26-17 the district has any outstanding bonded indebtedness until that 26-18 bonded indebtedness is repaid or defeased in accordance with the 26-19 order or resolution authorizing the issuance of the bonds. 26-20 SECTION 53. CONTRACTS WITH DISTRICT. (a) A municipality, 26-21 county, or other political subdivision of the state, without 26-22 further authorization, may contract with the district to implement 26-23 a project of the district or aid and assist the district in 26-24 providing the services authorized under this chapter. A contract 26-25 under this section may: 26-26 (1) be for a period on which the parties agree; 27-1 (2) include terms on which the parties agree; 27-2 (3) be payable from assessments or any other sources 27-3 of revenue that may be available for such purpose; or 27-4 (4) provide that assessments or other revenue 27-5 collected at a district project or from a person using or 27-6 purchasing a commodity or service at a district project may be paid 27-7 or rebated to the district under the terms of the contract. 27-8 (b) The district may enter into a contract, lease, or 27-9 agreement with or make or accept grants and loans to or from: 27-10 (1) the United States, including federal departments 27-11 and agencies; 27-12 (2) the state or a state agency; 27-13 (3) a county, municipality, or other political 27-14 subdivision of the state; 27-15 (4) a public or private corporation; or 27-16 (5) any other person. 27-17 (c) The district may perform all acts necessary for the 27-18 full exercise of the powers vested in the district on terms and 27-19 conditions and for the term the board may determine to be 27-20 advisable. 27-21 SECTION 54. The legislature finds that: 27-22 (1) proper and legal notice of the intention to 27-23 introduce this Act, setting forth the general substance of this 27-24 Act, has been published as provided by law, and the notice and a 27-25 copy of this Act have been furnished to all persons, agencies, 27-26 officials, or entities to which they are required to be furnished 28-1 by the constitution and laws of this state, including the governor, 28-2 who has submitted the notice and Act to the Texas Natural Resource 28-3 Conservation Commission; 28-4 (2) the Texas Natural Resource Conservation Commission 28-5 has filed its recommendations relating to this Act with the 28-6 governor, lieutenant governor, and speaker of the house of 28-7 representatives within the required time; 28-8 (3) the general law relating to consent by political 28-9 subdivisions to the creation of districts with conservation, 28-10 reclamation, and road powers and the inclusion of land in those 28-11 districts has been complied with; and 28-12 (4) all requirements of the constitution and laws of 28-13 this state and the rules and procedures of the legislature with 28-14 respect to the notice, introduction, and passage of this Act have 28-15 been fulfilled and accomplished. 28-16 SECTION 55. Notwithstanding the requirements of Section 12: 28-17 (1) the initial board of directors of the Bolivar 28-18 Conservation District consists of: 28-19 Pos. No. Name of Board Member 28-20 1.____________________________ 28-21 2.____________________________ 28-22 3.____________________________ 28-23 4.____________________________; and 28-24 5.____________________________ 28-25 (2) of the initial board members, the members 28-26 appointed for positions 1 through 3 serve until June 1, 2005, and 29-1 the members appointed for positions 4 through 5 serve until June 1, 29-2 2003. 29-3 SECTION 56. EFFECTIVE DATE. This Act takes effect 29-4 immediately if it receives a vote of two-thirds of all the members 29-5 elected to each house, as provided by Section 39, Article III, 29-6 Texas Constitution. If this Act does not receive the vote 29-7 necessary for immediate effect, this Act takes effect September 1, 29-8 2001.