By:  Jackson                                          S.B. No. 1685
         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 district.
3-14                 (2)  "Bond" means any type of interest-bearing
3-15     obligation, including a bond, note, bond anticipation note,
3-16     certificate of participation, lease, contract, or other evidence of
3-17     indebtedness.
3-18                 (3)  "Commission" means the Texas Natural Resource
3-19     Conservation Commission.
3-20                 (4)  "County" means Galveston County.
3-21                 (5)  "District" means the Bolivar Conservation
3-22     District.
3-23           SECTION 4.  GOVERNMENTAL AGENCY; TORT CLAIMS.  (a)  The
3-24     district is a governmental agency, a body politic and corporate,
3-25     and a political subdivision of the state.
3-26           (b)  The district is a unit of government for purposes of
 4-1     Chapter 101, Civil Practice and Remedies Code, and operations of
 4-2     the district are considered to be essential governmental functions
 4-3     and not proprietary functions for all purposes, including the
 4-4     application of the Texas Tort Claims Act.
 4-5           SECTION 5.  BOUNDARIES OF THE DISTRICT.  The district
 4-6     includes all of the territory contained within the following
 4-7     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
7-16     commissioners court of the county shall appoint directors from
7-17     persons recommended by the board or by members of the commissioners
7-18     court.  A person is appointed if a majority of the commissioners of
7-19     the 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
7-22     may 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
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           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 changing 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.
 14-6    (a)  The board may levy and collect an assessment for any purpose
 14-7    authorized by this chapter only if the assessment is approved by
 14-8    the 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.
20-10    The board may enforce the lien in the same manner that the board
20-11    may 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
22-12    in 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
23-16    district may levy and collect a tax for operation and maintenance
23-17    purposes, including funds for planning, constructing, acquiring,
23-18    maintaining, repairing, and operating all necessary land, plants,
23-19    works, facilities, improvements, appliances, and equipment of the
23-20    district and for paying costs of proper services, engineering and
23-21    legal fees, and organization and administrative expenses.
23-22          (b)  An operation and maintenance tax may not be levied by
23-23    the district until it is approved by a majority of the qualified
23-24    voters within the district voting at an election held for that
23-25    purpose.  After such a tax has been authorized by the district=s
23-26    voters, the board shall be authorized to levy the tax and have it
 24-1    assessed and 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
 25-1    the payment of all or part of the costs of an improvement project
 25-2    or service, the board may issue bonds, notes or other obligations
 25-3    in 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.
25-18    (a)  Bonds secured by assessments or ad valorem taxes, or a
25-19    combination thereof may not be issued unless the bonds are approved
25-20    by a 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
26-10    by Section 53, the board of the district by majority vote may
26-11    dissolve 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
26-17    if 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 full
27-18    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.