By:  Bernsen                                          S.B. No. 1639
         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 counties authorized to create coastal county
 1-3     conservation districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle A, Title 12, Local Government Code, is
 1-6     amended by adding Chapter 378 to read as follows:
 1-7             CHAPTER 378.  COASTAL COUNTY CONSERVATION DISTRICTS
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 378.001.  LEGISLATIVE FINDINGS; PURPOSES.  (a)  The
1-10     creation of coastal county conservation districts is declared to be
1-11     essential to the accomplishment of the purposes of Section 59,
1-12     Article XVI, and Section 52-a, Article III, of the Texas
1-13     Constitution, and to the accomplishment of the other public
1-14     purposes stated in this chapter.
1-15           (b)  The creation of each district is necessary to promote,
1-16     develop, encourage, and maintain employment, commerce, economic
1-17     development, and the public welfare in the commercial and
1-18     residential areas of this state bordering on the coastal waters of
1-19     the state.
1-20           (c)  The creation of districts and this chapter may not be
1-21     interpreted to relieve any county or municipality from providing
1-22     services to an area included in the district or to release the
1-23     county or municipality from the obligation it has to provide
 2-1     services to that area.  A district is created to supplement and not
 2-2     supplant the services of the county or municipality.
 2-3           (d)  All of the land and other property to be included within
 2-4     the boundaries of a district will be benefited by the works and
 2-5     projects that are to be accomplished and the services to be
 2-6     provided by the district under powers conferred by Section 59,
 2-7     Article XVI, and Section 52-a, Article III, of the Texas
 2-8     Constitution, and other powers granted under this chapter.
 2-9           (e)  A district is created to serve a public use and benefit.
2-10           (f)  The creation of each district is essential to further
2-11     the public purposes of development and diversification of the
2-12     economy of the state, the elimination of unemployment and
2-13     underemployment, and the development or expansion of commerce and
2-14     is in the public interest.
2-15           (g)  The creation of each district is necessary to protect
2-16     the state's natural resources through beach, sand dune, and shore
2-17     renourishment, sand dune protection, vegetation, and stabilization,
2-18     and all other forms of beach and shore protection, erosion
2-19     abatement, and reclamation, as well as through the construction and
2-20     maintenance of bulkheads, jetties, breakwaters, seawalls, and all
2-21     other facilities that protect beaches from erosion.
2-22           (h)  The creation of each district is necessary to promote,
2-23     develop, and encourage navigation along the state's coastal waters,
2-24     bays, and inlets, including the deepening and widening of
2-25     navigation channels.
2-26           (i)  Each improvement project or service authorized by this
 3-1     chapter is found and declared to carry out a public purpose.
 3-2           Sec. 378.002.  CONSTRUCTION OF CHAPTER.  (a)  This chapter
 3-3     shall be liberally construed in conformity with the findings and
 3-4     purposes in Section 378.001.
 3-5           (b)  If any provision of general law is in conflict or
 3-6     inconsistent with this chapter, this chapter prevails.  Any general
 3-7     law not in conflict or inconsistent with this chapter is adopted
 3-8     and incorporated by reference.
 3-9           Sec. 378.003.  DEFINITIONS.  In this chapter:
3-10                 (1)  "Board" means a board of directors of a district.
3-11                 (2)  "Bond" means any type of interest-bearing
3-12     obligation, including a bond, note, bond anticipation note,
3-13     certificate of participation, lease, contract, or other evidence of
3-14     indebtedness.
3-15                 (3)  "Commission" means the Texas Natural Resource
3-16     Conservation Commission.
3-17                 (4)  "District" means a conservation management
3-18     district created under this chapter.
3-19           Sec. 378.004.  GOVERNMENTAL AGENCY; TORT CLAIMS.  (a)  A
3-20     district is a governmental agency, a body politic and corporate,
3-21     and a political subdivision of the state.
3-22           (b)  A district is a unit of government for purposes of
3-23     Chapter 101, Civil Practice and Remedies Code, and operations of a
3-24     district are considered to be essential governmental functions and
3-25     not proprietary functions for all purposes, including the
3-26     application of the Texas Tort Claims Act.
 4-1                     SUBCHAPTER B.  CREATION OF DISTRICT
 4-2           Sec. 378.021.  AREAS ELIGIBLE FOR CREATION OF DISTRICT.  A
 4-3     district may be created only in a county that borders the Gulf of
 4-4     Mexico and has a beach parks board.
 4-5           Sec. 378.022.  PETITION.  (a)  Before a district may be
 4-6     created, the commissioners court must receive a petition requesting
 4-7     creation of the district.
 4-8           (b)  The petition must be signed by:
 4-9                 (1)  the owners of a majority of the assessed value of
4-10     the real property in the proposed district, according to the most
4-11     recent certified county property tax rolls; or
4-12                 (2)  50 persons who own real property in the proposed
4-13     district if, according to the most recent certified county property
4-14     tax rolls, more than 50 persons own real property in the proposed
4-15     district.
4-16           (c)  The petition must:
4-17                 (1)  describe the boundaries of the proposed district
4-18     by metes and bounds or, if there is a recorded map or plat and
4-19     survey of the area, by lot and block number;
4-20                 (2)  state the specific purposes for which the district
4-21     will be created;
4-22                 (3)  state the general nature of the work, projects, or
4-23     services proposed to be provided, the necessity for those services,
4-24     and the costs as estimated by the persons filing the petition;
4-25                 (4)  include a name of the district; and
4-26                 (5)  include a proposed list of initial directors.
 5-1           Sec. 378.023.  COUNTY HEARING; NOTICE.  The commissioners
 5-2     court or a person authorized by the commissioners court shall set a
 5-3     date, time, and place for a hearing to consider each petition
 5-4     received.  The commissioners court or authorized person shall issue
 5-5     a notice of the date, time, and place of hearing.
 5-6           Sec. 378.024.  PUBLICATION OF NOTICE.  (a)  The commissioners
 5-7     court or authorized person shall publish notice of the hearing in a
 5-8     newspaper of general circulation in the county in which the
 5-9     proposed district is located.  The publication must occur not later
5-10     than the 31st day before the date on which the hearing will be
5-11     held.
5-12           (b)  Not later than the 30th day before the date of the
5-13     hearing, the petitioner shall send the notice of the hearing by
5-14     certified mail, return receipt requested, to each person who owns
5-15     real property in the proposed district, according to the most
5-16     recent certified county property tax rolls, other than a property
5-17     owner who signed the petition for creation.  The tax assessor and
5-18     collector shall certify from the tax rolls ownership of property on
5-19     the date the petition is filed with the commissioners court.
5-20           Sec. 378.025.  HEARING.  (a)  At a hearing set under Section
5-21     378.023, the commissioners court shall examine the petition to
5-22     determine its sufficiency.  Any interested person may appear before
5-23     the commissioners court and offer testimony.
5-24           (b)  The commissioners court has jurisdiction to determine
5-25     each issue relating to the creation of the district.
5-26           (c)  If after the hearing the commissioners court finds that
 6-1     the district is feasible and necessary and would be a benefit to
 6-2     all or any part of the land proposed to be included in the district
 6-3     and benefit the public, the commissioners court shall make that
 6-4     finding and grant the petition.  The commissioners court may create
 6-5     the district over only a portion of the area described in the
 6-6     petition.
 6-7           Sec. 378.026.  ORDER; INITIAL DIRECTORS.  If the
 6-8     commissioners court grants the petition, the commissioners court
 6-9     shall appoint the initial directors in the order creating the
6-10     district.
6-11                          SUBCHAPTER C.  BOUNDARIES
6-12           Sec. 378.041.  BOUNDARIES.  The boundaries of a district are
6-13     as prescribed by the order creating the district.  The
6-14     commissioners court may issue a subsequent order changing the
6-15     boundaries of the district.
6-16           Sec. 378.042.  ANNEXATION.  A district may annex land as
6-17     provided by Subchapter J, Chapter 49, Water Code, subject to the
6-18     approval of the commissioners court.
6-19           Sec. 378.043.  EXCLUDING TERRITORY.  (a)  At any time during
6-20     which a district does not have outstanding bonds, the board on its
6-21     own motion may call a hearing on the question of the exclusion of
6-22     land from the district in the manner provided by Subchapter J,
6-23     Chapter 49, Water Code, if the exclusions are practicable, just, or
6-24     desirable.
6-25           (b)  The board shall call a hearing on the exclusion of land
6-26     or other property from the district if a landowner or property
 7-1     owner in the district files with the secretary of the board a
 7-2     written petition requesting the hearing before the issuance of
 7-3     bonds.
 7-4        SUBCHAPTER D.  ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
 7-5           Sec. 378.061.  NUMBER OF DIRECTORS; TERMS.  A district is
 7-6     governed by a board of seven directors who serve staggered
 7-7     four-year terms.
 7-8           Sec. 378.062.  TERMS OF INITIAL DIRECTORS.  The initial
 7-9     directors shall be divided into one group of four directors and one
7-10     group of three directors; the group of four directors serves
7-11     four-year terms, and the group of three directors serves two-year
7-12     terms.  The grouping of initial directors and terms for the
7-13     directors in each group shall be determined by the county.
7-14           Sec. 378.063.  QUALIFICATIONS OF DIRECTORS.  To be qualified
7-15     to serve as a director, a person must be at least 18 years old and:
7-16                 (1)  a resident of the district; or
7-17                 (2)  an owner of property in the district.
7-18           Sec. 378.064.  APPOINTMENT OF DIRECTORS.  (a)  The initial
7-19     and all succeeding members of the board of directors shall be
7-20     appointed by the commissioners court.
7-21           (b)  A director may serve successive terms.
7-22           Sec. 378.065.  REMOVAL OF DIRECTOR.  The commissioners court
7-23     may remove a director for misconduct or failure to carry out the
7-24     director's duties on petition by a majority of the remaining
7-25     directors and after notice and hearing.
7-26           Sec. 378.066.  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           Sec. 378.067.  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           Sec. 378.068.  OFFICERS.  After directors are appointed and
8-13     have 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           Sec. 378.069.  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           Sec. 378.070.  QUORUM.  One-half of the directors constitutes
8-22     a quorum, and a concurrence of a majority of a quorum of directors
8-23     is required for any official action of the district.
8-24                      SUBCHAPTER E.  POWERS AND DUTIES
8-25           Sec. 378.091.  GENERAL POWERS OF DISTRICT.  (a)  A district
8-26     has the rights, powers, privileges, authority, and functions
 9-1     conferred by the general law of this state applicable to
 9-2     conservation and reclamation districts created under Section 59,
 9-3     Article XVI, of the Texas Constitution, including those conferred
 9-4     by Chapter 54, Water Code, with respect to the purposes for which
 9-5     it is created.
 9-6           (b)  The district may contract and manage its affairs and
 9-7     funds for any corporate purpose in accordance with Chapter 54,
 9-8     Water Code.
 9-9           Sec. 378.092.  SPECIFIC POWERS.  (a)  A district has the
9-10     powers necessary or convenient to carry out and effect the purposes
9-11     and provisions of this chapter, including the powers granted in
9-12     this section.
9-13           (b)  A district has perpetual succession.
9-14           (c)  A district may sue and be sued in courts of competent
9-15     jurisdiction, may institute and prosecute suits without giving
9-16     security for costs, and may appeal from a judgment without giving a
9-17     supersedeas or cost bond.
9-18           (d)  A district may incur liabilities, borrow money on terms
9-19     and conditions the board determines, and issue notes, bonds, or
9-20     other obligations.
9-21           (e)  A district may acquire by grant, purchase, gift, devise,
9-22     lease, or otherwise, and may hold, use, sell, lease, or dispose of
9-23     real and personal property, licenses, patents, rights, and
9-24     interests necessary, convenient, or useful for the full exercise of
9-25     any of its powers under this chapter.
9-26           (f)  A district may acquire, construct, complete, develop,
 10-1    own, operate, and maintain permanent improvements and provide
 10-2    services inside and outside its boundaries.
 10-3          (g)  A district may enter into agreements with a person or
 10-4    entity, public or private, for the joint use of facilities,
 10-5    installations, and property.
 10-6          (h)  A district may enter contracts, leases, and agreements
 10-7    with and accept grants and loans from the United States and its
 10-8    departments and agencies, the state and its agencies, counties,
 10-9    municipalities, and political subdivisions, public or private
10-10    corporations, and other persons and may perform all acts necessary
10-11    for the full exercise of the powers vested in it on terms and
10-12    conditions and for the term the board may determine to be
10-13    advisable.
10-14          (i)  A district may acquire property under conditional sales
10-15    contracts, leases, equipment trust certificates, or any other form
10-16    of contract or trust agreement.
10-17          (j)  A district may sell, lease, convey, or otherwise dispose
10-18    of any of its rights, interests, or properties that are not needed
10-19    for or, in the case of leases, that are not consistent with, the
10-20    efficient operation and maintenance of the district's improvements.
10-21    A district may sell, lease, or otherwise dispose of any surplus
10-22    material or personal or real property not needed for its
10-23    requirements or for the purpose of carrying out its powers under
10-24    this chapter.
10-25          (k)  A district may procure and pay premiums to insurers for
10-26    insurance of any type in amounts considered necessary or advisable
 11-1    by the board.
 11-2          (l)  A district may do anything necessary, convenient, or
 11-3    desirable to carry out the powers expressly granted or implied by
 11-4    this chapter.
 11-5          Sec. 378.093.  USE AND ALTERATION OF LAND AND PUBLIC WAYS.
 11-6    (a)  The district may construct all improvements and facilities
 11-7    necessary to accomplish the purposes for which it was created on
 11-8    lands, whether publicly or privately owned.
 11-9          (b)  Before constructing an improvement or facility on lands
11-10    owned by the county, the state, a municipality, or another
11-11    political subdivision, a district must obtain approval from the
11-12    relevant government entity of the plans and specifications of such
11-13    improvement or facility.
11-14          (c)  If a district, in exercising any of the powers conferred
11-15    by this chapter, requires the relocation, adjustment, raising,
11-16    lowering, rerouting, or changing the grade of or altering the
11-17    construction of any street, alley, highway, overpass, underpass, or
11-18    road, any railroad track, bridge, or other facilities or property,
11-19    any electric lines, conduits, or other facilities or property, any
11-20    telephone or telegraph lines, conduits, or other facilities or
11-21    property, any gas transmission or distribution pipes, pipelines,
11-22    mains, or other facilities or property, any water, sanitary sewer
11-23    or storm sewer pipes, pipelines, mains, or other facilities, or
11-24    property, any cable television lines, cables, conduits, or other
11-25    facilities or property, or any other pipelines and any facilities
11-26    or properties relating to those pipelines, the relocation,
 12-1    adjustment, raising, lowering, rerouting, or changing of grade, or
 12-2    altering of construction must be accomplished at the sole cost and
 12-3    expense of the district, and damages that are suffered by the
 12-4    owners of the property or facilities shall be borne by the
 12-5    district.
 12-6          Sec. 378.094.  NO EMINENT DOMAIN POWER.  A district may not
 12-7    exercise the power of eminent domain. The county may exercise its
 12-8    power of eminent domain to implement a district facility or
 12-9    improvement.
12-10          Sec. 378.095.  MANAGEMENT BY BOARD OF DIRECTORS.  The
12-11    responsibility for the management, operation, and control of the
12-12    property belonging to a district is vested in the board.
12-13          Sec. 378.096.  SPECIFIC POWERS AND DUTIES OF BOARD.  (a)  The
12-14    board may:
12-15                (1)  employ all persons, firms, partnerships, or
12-16    corporations considered necessary by the board for the conduct of
12-17    the affairs of the district, including a general manager,
12-18    bookkeepers, auditors, engineers, attorneys, financial advisers,
12-19    peace or traffic control officers, architects, and operating or
12-20    management companies and prescribe the duties, tenure, and
12-21    compensation of each;
12-22                (2)  dismiss employees;
12-23                (3)  adopt a seal for the district;
12-24                (4)  invest the district's money in any investments
12-25    authorized by Subchapter A, Chapter 2256, Government Code, and
12-26    provide, by resolution, that an authorized representative manage
 13-1    the district's funds and invest and reinvest the money on terms the
 13-2    board considers advisable;
 13-3                (5)  establish a fiscal year for the district;
 13-4                (6)  establish a complete system of accounts for the
 13-5    district and each year shall have prepared an audit of the
 13-6    district's affairs, which shall be open to public inspection, by an
 13-7    independent certified public accountant or a firm of independent
 13-8    certified public accountants; and
 13-9                (7)  designate one or more banks to serve as the
13-10    depository bank or banks.
13-11          (b)  Money of a district shall be deposited in the depository
13-12    bank or banks unless otherwise required by orders or resolutions
13-13    authorizing the issuance of the district's bonds or notes.  To the
13-14    extent that money in the depository bank or banks is not insured by
13-15    the Federal Deposit Insurance Corporation, the money must be
13-16    secured in the manner provided by law for the security of funds of
13-17    counties.  The board by resolution may authorize a designated
13-18    representative to supervise the substitution of securities pledged
13-19    to secure the district's money.
13-20          (c)  The board may adopt and enforce reasonable rules and
13-21    regulations governing the administration of the district and its
13-22    programs and projects.
13-23          (d)  The name of the district may be established or changed
13-24    by resolution of the board.
13-25          Sec. 378.097.  HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE
13-26    ACT.  (a)  The board may appoint a hearings examiner to conduct any
 14-1    hearing called by the board, including a hearing required by
 14-2    Chapter 395, Local Government Code.  The hearings examiner may be
 14-3    an employee of the district or a member of the district's board.
 14-4          (b)  The hearing shall be conducted in accordance with
 14-5    Chapter 2001, Government Code.
 14-6                        SUBCHAPTER F.  ASSESSMENTS
 14-7          Sec. 378.111.  GENERAL POWERS RELATING TO ASSESSMENTS.
 14-8    (a)  The board may levy and collect an assessment for any purpose
 14-9    authorized by this chapter only if the assessment is approved by
14-10    the commissioners court.
14-11          (b)  The board may undertake an improvement project or
14-12    service that confers a special benefit on all or a definable part
14-13    of the district.  The board may impose and collect a special
14-14    assessment on property in that area, based on the benefit conferred
14-15    by the improvement project or service, to pay all or part of the
14-16    cost of the project or service.  If the board determines that there
14-17    is a benefit to the district, the district may provide an
14-18    improvement or service to an area outside the boundaries of the
14-19    district.
14-20          Sec. 378.112.  SPECIFIC POWERS RELATING TO ASSESSMENTS.  An
14-21    improvement project or service provided by the district may include
14-22    the construction, acquisition, improvement, relocation, operation,
14-23    maintenance, or provision of:
14-24                (1)  crosswalks; seawalls; sand dune, beach, and shore
14-25    stabilization and renourishment; sand dune construction,
14-26    vegetation, protection, and stabilization; beach and shore erosion
 15-1    abatement; bulkheads, jetties, and breakwaters; geotubes;
 15-2    navigation projects, including the deepening and widening of
 15-3    navigation channels; and other similar improvements; and
 15-4                (2)  expenses incurred in the establishment,
 15-5    administration, maintenance, and operation of the district or any
 15-6    of its improvements, projects, or services.
 15-7          Sec. 378.113.  PROPOSED ASSESSMENTS.  An improvement project
 15-8    or service may be financed under this chapter after notice of a
 15-9    hearing is given as required by this subchapter and the board holds
15-10    a public hearing on the advisability of the improvement project or
15-11    service and the proposed assessment.
15-12          Sec. 378.114.  PETITION REQUIRED.  The board may not finance
15-13    an improvement project or service under this chapter unless a
15-14    written petition has been filed with the board requesting the
15-15    improvement project or service.  The petition must be signed by at
15-16    least 25 persons who own real property in the district if more than
15-17    25 persons own real property in the district according to the most
15-18    recent certified property tax rolls.
15-19          Sec. 378.115.  ASSESSMENT ELECTION.  (a)  An assessment may
15-20    not be imposed unless:
15-21                (1)  it is approved by a majority of the qualified
15-22    voters in the district voting at an election held for that purpose;
15-23    or
15-24                (2)  the board receives a written petition requesting
15-25    the improvement project or service that is signed by the owners of
15-26    50 percent or more of the assessed value of the property in the
 16-1    district to be assessed, as determined from the most recent
 16-2    certified county property tax rolls.
 16-3          (b)  An election required by this section must be conducted
 16-4    in accordance with Chapter 376.
 16-5          Sec. 378.116.  NOTICE OF HEARING.  (a)  Notice of the hearing
 16-6    shall be given in a newspaper with general circulation in the
 16-7    county in which the district is located.  The publication must be
 16-8    made not later than the 30th day before the date of the hearing.
 16-9          (b)  The notice must include:
16-10                (1)  the time and place of the hearing;
16-11                (2)  the general nature of the proposed improvement
16-12    project or service;
16-13                (3)  the estimated cost of the improvement project or
16-14    service, including interest during construction and associated
16-15    financing costs; and
16-16                (4)  the proposed method of assessment.
16-17          (c)  Written notice containing the information required by
16-18    this section shall be mailed by certified mail, return receipt
16-19    requested, not later than the 30th day before the date of the
16-20    hearing.  The notice shall be mailed to each property owner in the
16-21    district who will be subject to assessment at the current address
16-22    of the property to be assessed as reflected on the tax rolls.
16-23          Sec. 378.117.  CONCLUSION OF HEARING; FINDINGS.  (a)  A
16-24    hearing on the improvement project or service, whether conducted by
16-25    the board or a hearings examiner, may be adjourned from time to
16-26    time.
 17-1          (b)  At the conclusion of the hearing, the board shall make
 17-2    findings by resolution or order relating to the advisability of the
 17-3    improvement project or service, the nature of the improvement
 17-4    project or service, the estimated cost, the area benefited, the
 17-5    method of assessment, and the method and time for payment of the
 17-6    assessment.
 17-7          (c)  If a hearings examiner is appointed to conduct the
 17-8    hearing, after conclusion of the hearing, the hearings examiner
 17-9    shall file with the board a report stating the examiner's findings
17-10    and conclusions.
17-11          Sec. 378.118.  AREA TO BE ASSESSED.  (a)  The area of the
17-12    district to be assessed according to the findings of the board may
17-13    be the entire district or any part of the district and may be less
17-14    than the area proposed in the notice of the hearing.
17-15          (b)  Except as provided by Subsection (c), the area to be
17-16    assessed may not include property that is not within the district
17-17    boundaries at the time of the hearing unless there is an additional
17-18    hearing preceded by the required notice.
17-19          (c)  The owner of improvements constructed or land annexed to
17-20    the district after the district has imposed an assessment may waive
17-21    the right to notice and an assessment hearing and may agree to the
17-22    imposition and payment of an assessment at an agreed rate for
17-23    improvements constructed or land annexed to the district.
17-24          Sec. 378.119.  OBJECTIONS; LEVY OF ASSESSMENT.  (a)  At a
17-25    hearing on proposed assessments, at any adjournment of the hearing
17-26    or after consideration of the hearings examiner's report, the board
 18-1    shall hear and rule on all objections to each proposed assessment.
 18-2          (b)  The board may amend a proposed assessment for any
 18-3    parcel.
 18-4          (c)  After all objections have been heard and action has been
 18-5    taken with regard to those objections, the board, by order or
 18-6    resolution, shall levy the assessment as a special assessment on
 18-7    the property and shall specify the method of payment of the
 18-8    assessment and may provide that the assessment be paid in periodic
 18-9    installments, including interest.
18-10          (d)  Periodic installments must be in amounts sufficient to
18-11    meet annual costs for services and improvements as provided by this
18-12    chapter and continue for the number of years required to retire
18-13    indebtedness or pay for the services to be rendered.  The board may
18-14    provide interest charges or penalties for failure to make timely
18-15    payment and also may impose an amount to cover delinquencies and
18-16    expenses of collection.
18-17          (e)  If an assessment is imposed for more than one service or
18-18    improvement project, the board may provide that an assessment
18-19    collected for one improvement project or service may be borrowed to
18-20    be used for another improvement project or service.
18-21          (f)  The board shall establish a procedure for the
18-22    distribution or use of any assessment in excess of those necessary
18-23    to finance the improvement project or service for which the
18-24    assessment was collected.
18-25          Sec. 378.120.  APPORTIONMENT OF COST.  The portion of the
18-26    cost of an improvement project or service to be assessed against
 19-1    the property in the district shall be apportioned by the board
 19-2    based on the special benefits accruing to the property because of
 19-3    the improvement project or service. The cost may be assessed:
 19-4                (1)  equally by front foot or square foot of land area
 19-5    against all property in the district;
 19-6                (2)  against property according to the value of the
 19-7    property as determined by the board, with or without regard to
 19-8    structures or other improvements on the  property; or
 19-9                (3)  on any other reasonable assessment plan that
19-10    results in imposing fair and equitable shares of the cost on
19-11    property similarly benefited.
19-12          Sec. 378.121.  ASSESSMENT ROLL.  If the total cost of an
19-13    improvement project or service is determined, the board shall
19-14    impose the assessment against each parcel of land against which an
19-15    assessment may be imposed in the district.  With regard to an
19-16    assessment for services, the board may impose an annual assessment
19-17    that may be lower but not higher than the initial assessment.  The
19-18    board shall have an assessment roll prepared showing the assessment
19-19    against each property and the board's basis for the assessment.
19-20    The assessment roll shall be filed with the secretary of the board
19-21    or other officer who performs the function of secretary and be open
19-22    for public inspection.
19-23          Sec. 378.122.  INTEREST ON ASSESSMENTS; LIEN.  (a)  An
19-24    assessment bears interest at a rate specified by the board that may
19-25    not exceed the interest rate permitted by Chapter 3, Acts of the
19-26    61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's
 20-1    Texas Civil Statutes).
 20-2          (b)  Interest on an assessment between the effective date of
 20-3    the order or resolution imposing the assessment and the date the
 20-4    first installment and any related penalty is payable shall be added
 20-5    to the first installment.  The interest or penalties on all unpaid
 20-6    installments shall be added to each subsequent installment until
 20-7    paid.
 20-8          (c)  Assessments, reassessments or assessments resulting from
 20-9    an addition to or correction of the assessment roll by the
20-10    district, penalties and interest on an assessment or reassessment,
20-11    expenses of collection, and reasonable attorney's fees incurred by
20-12    the district:
20-13                (1)  are a first and prior lien against the property
20-14    assessed;
20-15                (2)  are superior to any other lien or claim other than
20-16    a lien or claim for county, school district, or municipal ad
20-17    valorem taxes; and
20-18                (3)  are the personal liability of and charge against
20-19    the owners of the property even if the owners are not named in the
20-20    assessment proceedings.
20-21          (d)  The lien is effective from the date of the resolution of
20-22    the board imposing the assessment until the assessment is paid.
20-23    The board may enforce the lien in the same manner that the board
20-24    may enforce an ad valorem tax lien against real property.
20-25          (e)  The owner of any property assessed may pay at any time
20-26    the entire assessment against any lot or parcel with accrued
 21-1    interest to the date of the payment.
 21-2          Sec. 378.123.  SUPPLEMENTAL ASSESSMENTS.  After notice and
 21-3    hearing in the manner required for original assessments, the board
 21-4    may make supplemental assessments to correct omissions or mistakes
 21-5    in the assessment:
 21-6                (1)  relating to the total cost of the improvement
 21-7    project or service; or
 21-8                (2)  covering delinquencies or costs of collection.
 21-9          Sec. 378.124.  APPEAL.  (a)  After determination of an
21-10    assessment, a property owner may appeal the assessment to the
21-11    board.  The property owner must file a notice of appeal with the
21-12    board not later than the 30th day after the date that the
21-13    assessment is adopted.  The board shall set a date to hear the
21-14    appeal.
21-15          (b)  The property owner may appeal the board's decision on
21-16    the assessment to a court of competent jurisdiction.  The property
21-17    owner must file notice of the appeal with the court of competent
21-18    jurisdiction not later than the 30th day after the date of the
21-19    board's final decision with respect to the assessment.
21-20          (c)  Failure to file either of the notices in the time
21-21    required by this section results in a loss of the right to appeal
21-22    the assessment.
21-23          (d)  If an assessment against a parcel of land is set aside
21-24    by a court of competent jurisdiction, found excessive by the board,
21-25    or determined to be invalid by the board, the board may make a
21-26    reassessment or new assessment of the parcel.
 22-1          Sec. 378.125.  APPEAL OF ORDER.  If notice has been given as
 22-2    required by this subchapter, a person against whom an assessment is
 22-3    made by board order may appeal the assessment to a district court
 22-4    in the county in which the district is located in the manner
 22-5    provided for the appeal of contested cases under Chapter 2001,
 22-6    Government Code.  Review by the district court is by trial de novo.
 22-7                         SUBCHAPTER G.  EXEMPTIONS
 22-8          Sec. 378.141.  PUBLIC UTILITIES.  The district may not impose
 22-9    an assessment on the property, equipment, or facilities of a public
22-10    utility.  For purposes of this subsection, "utility" means a person
22-11    that provides to the public gas, electricity, telephone, sewage, or
22-12    water service.
22-13          Sec. 378.142.  GOVERNMENTAL ENTITIES; ASSESSMENTS.  Payment
22-14    of assessments by municipalities, counties, other political
22-15    subdivisions, and organizations exempt from federal income tax
22-16    under Section 501(c)(3), Internal Revenue Code of 1986, shall be
22-17    established by contract. Municipalities, counties, and other
22-18    political subdivisions may contract with the district under terms
22-19    and conditions those entities consider advisable to provide for the
22-20    payment of assessments.
22-21                        SUBCHAPTER H.  FUNDS; BONDS
22-22          Sec. 378.161.  FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND
22-23    SERVICES.  (a)  The cost of any improvement project or service,
22-24    including interest during construction and costs of issuance of
22-25    bonds, may be paid from general or available funds, assessments, or
22-26    the proceeds of bonds payable from revenues, assessments, grants,
 23-1    gifts, contracts, leases, or any combination of those funds.
 23-2          (b)  During the progress of an improvement project or
 23-3    service, the board may issue temporary notes to pay the costs of
 23-4    the improvement project or service and issue bonds on completion.
 23-5          (c)  The costs of more than one improvement project or
 23-6    service may be paid from a single issue and sale of bonds without
 23-7    other consolidation proceedings before the bond issue.
 23-8          Sec. 378.162.  BONDS.  (a)  For the payment of all or part of
 23-9    the costs of an improvement project or service, the board may issue
23-10    bonds in one or more series payable from and secured by
23-11    assessments, revenues, grants, gifts, contracts, leases, or any
23-12    combination of those funds.  Bonds may be liens on all or part of
23-13    the revenue derived from improvements authorized under this
23-14    chapter, including installment payments of special assessments or
23-15    from any other source pledged to their payment.
23-16          (b)  The district shall have the power to issue bonds and
23-17    they shall be approved in the manner set forth in Subchapter J,
23-18    Chapter 375.
23-19          (c)  Bonds shall be issued and approved by the board of
23-20    directors of the district without the consent of the county, any
23-21    municipality, or the Texas Natural Resource Conservation
23-22    Commission.
23-23                    SUBCHAPTER I.  COMPETITIVE BIDDING
23-24          Sec. 378.181.  COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS
23-25    CONTRACTS.  Contracts of the district are subject to the
23-26    competitive bidding requirements of Subchapter I, Chapter 49, Water
 24-1    Code.
 24-2          Sec. 378.182.  SUPERSEDES OTHER LAW.  This chapter states the
 24-3    required procedures necessary for the district to award contracts
 24-4    and supersedes any law or other requirement with respect to award
 24-5    of contracts.
 24-6                       SUBCHAPTER J.  BOND ELECTION
 24-7          Sec. 378.201.  ELECTION TO APPROVE ISSUANCE OF BONDS.
 24-8    (a)  Bonds secured by assessments may not be issued unless:
 24-9                (1)  the bonds are approved by a majority of the
24-10    qualified voters in the district voting at an election held for
24-11    that purpose; or
24-12                (2)  the district receives a petition requesting the
24-13    assessment and the issuance of bonds which is signed by the owners
24-14    of 50 percent or more of the assessed value of the property in the
24-15    district to be assessed, as determined from the most recent
24-16    certified county property tax rolls.
24-17          (b)  Bonds that are not secured by assessments are not
24-18    subject to the requirement of an election and may be issued without
24-19    an election.
24-20          (c)  An election required by this section shall be conducted
24-21    in accordance with Chapter 376.
24-22                        SUBCHAPTER K.  DISSOLUTION
24-23          Sec. 378.221.  DISSOLUTION BY BOARD VOTE.  Except as provided
24-24    by Section 378.223, the board of a district by majority vote may
24-25    dissolve the district at any time.
24-26          Sec. 378.222.  DISSOLUTION BY  COUNTY ORDER.  Except as
 25-1    provided by Section 378.223, the commissioners court of the county
 25-2    in which a district is located, by a vote of not less than
 25-3    two-thirds, may adopt a resolution dissolving the district.
 25-4          Sec. 378.223.  LIMITATION.  A district may not be dissolved
 25-5    if the district has any outstanding bonded indebtedness until that
 25-6    bonded indebtedness is repaid or defeased in accordance with the
 25-7    order or resolution authorizing the issuance of the bonds.
 25-8                  SUBCHAPTER L.  CONTRACTS WITH DISTRICT
 25-9          Sec. 378.241.  CONTRACTS WITH DISTRICT.  (a)  A municipality,
25-10    county, or other political subdivision of the state, without
25-11    further authorization, may contract with the district to implement
25-12    a project of the district or aid and assist the district in
25-13    providing the services authorized under this chapter.  A contract
25-14    under this section may:
25-15                (1)  be for a period on which the parties agree;
25-16                (2)  include terms on which the parties agree;
25-17                (3)  be payable from assessments or any other sources
25-18    of revenue that may be available for such purpose; or
25-19                (4)  provide that assessments or other revenue
25-20    collected at a district project or from a person using or
25-21    purchasing a commodity or service at a district project may be paid
25-22    or rebated to the district under the terms of the contract.
25-23          (b)  The district may enter into a contract, lease, or
25-24    agreement with or make or accept grants and loans to or from:
25-25                (1)  the United States, including federal departments
25-26    and agencies;
 26-1                (2)  the state or a state agency;
 26-2                (3)  a county, municipality, or other political
 26-3    subdivision of the state;
 26-4                (4)  a public or private corporation; or
 26-5                (5)  any other person.
 26-6          (c)  The district may perform all acts necessary for the full
 26-7    exercise of the powers vested in the district on terms and
 26-8    conditions and for the term the board may determine to be
 26-9    advisable.
26-10          SECTION 2.  The importance of this legislation and the
26-11    crowded condition of the calendars in both houses create an
26-12    emergency and an imperative public necessity that the
26-13    constitutional rule requiring bills to be read on three several
26-14    days in each house be suspended, and this rule is hereby suspended,
26-15    and that this Act take effect and be in force from and after its
26-16    passage, and it is so enacted.