By: Jackson S.B. No. 1686 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the West Galveston Island 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 West 1-6 Galveston Island 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, Texas Constitution, and to the 1-11 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 any county or municipality from providing 1-17 services to the area included in the district or to release the 1-18 county or municipality from the obligation it has to provide 1-19 services to that area. The district is created to supplement and 1-20 not supplant the services of the county or municipality. 1-21 (e) All of the land and other property to be included within 1-22 the boundaries of the district will be benefited by the works and 1-23 projects that are to be accomplished and the services to be 1-24 provided by the district under powers conferred by Section 59, 1-25 Article XVI, and Section 52-a, Article III, Texas Constitution, and 2-1 other powers granted in this Act. 2-2 (f) The district is created to serve a public use and 2-3 benefit. 2-4 (g) The creation of the district is essential to further the 2-5 public purposes of development and diversification of the economy 2-6 of the state, the elimination of unemployment and underemployment, 2-7 and the development or expansion of commerce and is in the public 2-8 interest. 2-9 (h) The creation of the district is necessary to protect the 2-10 state's natural resources by restoration and protection of natural 2-11 resources along the boundaries of and within the district, through 2-12 improvement projects, matching fund contributions to improvement 2-13 projects by the state or county, and services provided by the 2-14 district under this Act. 2-15 (i) The creation of the district is necessary to promote, 2-16 develop, and encourage navigation along the state's coastal waters, 2-17 bays, and inlets, including the deepening and widening of 2-18 navigation channels. 2-19 (j) Each improvement project or service authorized by this 2-20 Act is found and declared to carry out a public purpose. 2-21 SECTION 2. CONSTRUCTION OF ACT. This Act shall be liberally 2-22 construed in conformity with the findings and purposes in Section 1 2-23 of this Act. 2-24 SECTION 3. DEFINITIONS. In this Act: 2-25 (1) "Board" means the board of directors of the 2-26 district. 3-1 (2) "Bond" means any type of interest-bearing 3-2 obligation, including a bond, note, bond anticipation note, 3-3 certificate of participation, lease, contract, or other evidence of 3-4 indebtedness. 3-5 (3) "Commission" means the Texas Natural Resource 3-6 Conservation Commission. 3-7 (4) "County" means Galveston County. 3-8 (5) "District" means the West Galveston Island 3-9 Conservation District. 3-10 SECTION 4. GOVERNMENTAL AGENCY. Except as provided by 3-11 Section 14 of this Act, the district is a governmental agency, a 3-12 body politic and corporate, and a political subdivision of the 3-13 state. 3-14 SECTION 5. BOUNDARIES. The district includes all of the 3-15 territory contained in the following described land: 3-16 BEGINNING at the intersection of the southerly projection of 3-17 the centerline of 103rd Street in the City of Galveston, Texas, and 3-18 the mean high tide line of the Gulf of Mexico on Galveston Island; 3-19 Thence along the mean high tide line of the Gulf of Mexico 3-20 and San Luis Pass in a westerly then northerly direction to the 3-21 intersection of such line with the centerline of FM 3005; 3-22 Thence along the centerline of FM 3005 in a westerly 3-23 direction to the intersection of such line with the Galveston 3-24 County-Brazoria County line; 3-25 Thence along the Galveston County-Brazoria County line in a 3-26 northerly direction to the intersection of such line with the 4-1 centerline of the Intracoastal Waterway; 4-2 Thence along the centerline of the Intracoastal Waterway in 4-3 an easterly direction to the intersection of such line with the 4-4 northerly projection of the centerline of 103rd Street in the City 4-5 of Galveston, Texas; and 4-6 Thence along the centerline of 103rd Street in the City of 4-7 Galveston, Texas, and the northerly and southerly projection 4-8 thereof to the PLACE OF BEGINNING. 4-9 SECTION 6. FINDINGS RELATED TO BOUNDARIES. The boundaries 4-10 and field notes of the district form a closure. If a mistake is 4-11 made in the field notes or in copying the field notes in the 4-12 legislative process, it does not affect the district's: 4-13 (1) organization, existence, or validity; 4-14 (2) right to issue any type of bond for the purposes 4-15 for which the district is created or to pay the principal of and 4-16 interest on a bond; 4-17 (3) right to impose or collect an assessment or ad 4-18 valorem taxes; or 4-19 (4) legality or operation. 4-20 SECTION 7. CONFIRMATION ELECTION. (a) The initial 4-21 directors shall meet as soon as practicable after all initial 4-22 directors have qualified for office. At the first meeting of the 4-23 board, the board shall call an election to be held within the 4-24 boundaries of the district to confirm the creation of the district. 4-25 The election must be held on the first uniform election date 4-26 provided by Section 41.001, Election Code, that falls on or after 5-1 the 45th day after the date of the order calling the election. 5-2 (b) The district may not issue any bonds or other 5-3 obligations, impose an assessment or ad valorem tax, or conduct any 5-4 other activity before a confirmation election is held. 5-5 (c) The board shall give notice of the confirmation 5-6 election. The notice must state: 5-7 (1) the nature of the election, including the 5-8 proposition that is to appear on the ballot; 5-9 (2) the date of the election; 5-10 (3) the hours during which the polls will be open; and 5-11 (4) the location of the polling places. 5-12 (d) The ballot shall be printed to permit voting "For 5-13 District" or "Against District." 5-14 (e) Immediately after the confirmation election, the 5-15 presiding judge of each election precinct shall take returns of the 5-16 result to the board. The board shall canvass the returns and 5-17 declare the results at the earliest practicable time. 5-18 (f) If a majority of the votes cast in the election favor 5-19 the creation of the district, the board shall declare that the 5-20 district is created and enter the result in its minutes. If a 5-21 majority of the votes cast in the election are against the creation 5-22 of the district, the board shall declare that the proposition to 5-23 create the district was defeated and enter the result in its 5-24 minutes. A certified copy of the minute order declaring that the 5-25 district is created or declaring that the proposition to create the 5-26 district was defeated shall be filed with the commission. 6-1 (g) If the proposition to create the district is defeated, 6-2 another election to confirm the creation of the district may not be 6-3 held until the expiration of six months after the date of the most 6-4 recent confirmation election. The board may not call more than 6-5 three confirmation elections. 6-6 (h) The order canvassing the results of the confirmation 6-7 election shall contain a description of the district's boundaries 6-8 and shall be filed with the executive director of the commission 6-9 and in the deed records of the county. 6-10 SECTION 8. ANNEXATION. The district may annex land as 6-11 provided by Subchapter J, Chapter 49, Water Code, subject to the 6-12 approval of the commissioners court of the county. 6-13 SECTION 9. EXCLUDING TERRITORY. (a) At any time during 6-14 which the district does not have outstanding bonds, the board on 6-15 its own motion may call a hearing on the question of the exclusion 6-16 of land from the district in the manner provided by Subchapter J, 6-17 Chapter 49, Water Code, if the board finds that the exclusions are 6-18 practicable, just, or desirable. 6-19 (b) The board shall call a hearing on the exclusion of land 6-20 or other property from the district if a landowner or property 6-21 owner in the district files with the secretary of the board a 6-22 written petition requesting the hearing before the issuance of 6-23 bonds. 6-24 SECTION 10. BOARD OF DIRECTORS. (a) The district is 6-25 governed by a board of five directors who serve staggered terms of 6-26 four years, with three directors' terms expiring June 1 of an 7-1 odd-numbered year and two directors' terms expiring June 1 of the 7-2 following odd-numbered year. 7-3 (b) The commissioners court of the county shall appoint the 7-4 initial directors from persons recommended by members of the 7-5 commissioners court. A person is appointed if the county judge and 7-6 a majority of the commissioners of the county vote to appoint that 7-7 person. 7-8 (c) As soon as practicable after the first anniversary of 7-9 the date on which the creation of the district is confirmed, the 7-10 board shall call and hold an election to elect the initial 7-11 permanent directors. 7-12 (d) The election shall be held in the manner provided by 7-13 Section 49.102, Water Code. 7-14 (e) The election must be held on the first uniform election 7-15 date provided by Section 41.001, Election Code, that falls on or 7-16 after the 45th day after the date of the order calling the 7-17 election. The initial permanent directors elected at the election 7-18 shall draw lots to determine their terms so that two serve terms 7-19 expiring on the first July 1 of an odd-numbered year after the 7-20 election and three serve terms expiring July 1 of the second year 7-21 after the year in which the first terms expire. 7-22 (f) An election to elect the appropriate number of successor 7-23 directors shall be held on the uniform election date, established 7-24 by the Election Code, in May of each odd-numbered year. 7-25 (g) To be qualified to serve as a director, a person must be 7-26 at least 18 years old and: 8-1 (1) a resident and qualified voter of the district; 8-2 and 8-3 (2) an owner of property in the district. 8-4 (h) A director may serve successive terms. 8-5 (i) The commissioners court may remove a director for 8-6 misconduct or failure to carry out the director's duties or for any 8-7 other reason on petition by a majority of the remaining directors 8-8 or a majority of the commissioners court and after notice and 8-9 hearing. 8-10 (j) A vacancy in the office of director shall be filled by 8-11 appointment by the commissioners court for the unexpired term. 8-12 (k) As soon as practicable after a director is appointed or 8-13 elected, the director shall execute a $10,000 bond payable to the 8-14 district and conditioned on the faithful performance of the 8-15 director's duties. Each director's bond must be approved by the 8-16 board, and each director shall take the oath of office for public 8-17 officers prescribed by the constitution of this state. The bond 8-18 and oath shall be filed with the district and retained in its 8-19 records. 8-20 (l) After directors are appointed or elected and have 8-21 qualified by executing a bond and taking the oath, they shall 8-22 organize by electing a president, a vice president, a secretary, 8-23 and any other officers the board considers necessary. 8-24 (m) In accordance with Section 49.060, Water Code, a 8-25 director is entitled to compensation for service on the board and 8-26 is entitled to be reimbursed for necessary expenses incurred in 9-1 carrying out the duties and responsibilities of a director. 9-2 (n) A majority of the directors constitutes a quorum. 9-3 (o) The vote of a majority of directors is required for any 9-4 official action of the district. 9-5 SECTION 11. GENERAL POWERS OF DISTRICT. (a) Except for the 9-6 limitations set forth in this Act, the district has the rights, 9-7 powers, privileges, authority, and functions conferred by the 9-8 general law of this state applicable to conservation and 9-9 reclamation districts created under Section 59, Article XVI, Texas 9-10 Constitution, including those conferred by Chapter 54, Water Code, 9-11 with respect to the purposes for which the district is created. 9-12 (b) The district may contract and manage its affairs and 9-13 funds for any district purpose in accordance with Chapter 54, Water 9-14 Code. 9-15 SECTION 12. SPECIFIC POWERS AND DUTIES OF DISTRICT. (a) A 9-16 district has the powers necessary or convenient to carry out and 9-17 effect the purposes and provisions of this Act, including the 9-18 powers granted in this section. 9-19 (b) The district has perpetual succession. 9-20 (c) The district may: 9-21 (1) sue and be sued in courts of competent 9-22 jurisdiction, and institute and prosecute suits; 9-23 (2) incur liabilities and borrow money on terms the 9-24 board determines; 9-25 (3) issue bonds; 9-26 (4) acquire by grant, purchase, gift, devise, lease, 10-1 or otherwise and hold, use, sell, lease, or dispose of real and 10-2 personal property, licenses, patents, rights, and interests 10-3 necessary, convenient, or useful for the full exercise of any of 10-4 its powers under this Act; 10-5 (5) acquire, construct, complete, develop, own, 10-6 operate, and maintain permanent improvements and provide services 10-7 inside and outside its boundaries, except as specifically limited 10-8 in this Act; 10-9 (6) enter into agreements with a public or private 10-10 person for the joint use of facilities, installations, and 10-11 property; 10-12 (7) enter into contracts, leases, and agreements with 10-13 and accept grants and loans from the United States and its 10-14 departments and agencies, the state and its agencies, counties, 10-15 municipalities, and political subdivisions, public or private 10-16 corporations, and other persons and perform all acts necessary for 10-17 the full exercise of the powers vested in it on terms and for the 10-18 term the board may determine to be advisable; 10-19 (8) acquire property under conditional sales 10-20 contracts, leases, equipment trust certificates, or any other form 10-21 of contract or trust agreement; 10-22 (9) sell, lease, convey, or otherwise dispose of any 10-23 of its rights, interests, or properties that are not needed for or, 10-24 in the case of leases, that are not consistent with, the efficient 10-25 operation and maintenance of the district's improvements; 10-26 (10) sell, lease, or otherwise dispose of any surplus 11-1 material or personal or real property not needed for its 11-2 requirements or for the purpose of carrying out its powers under 11-3 this Act; 11-4 (11) procure and pay premiums to insurers for 11-5 insurance of any type in amounts considered necessary or advisable 11-6 by the board; and 11-7 (12) do anything necessary, convenient, or desirable 11-8 to carry out the powers expressly granted or implied by this Act. 11-9 SECTION 13. USE AND ALTERATION OF LAND AND PUBLIC WAYS. 11-10 (a) Except as otherwise provided by this Act, the district may 11-11 construct all improvements and facilities necessary to accomplish 11-12 the purposes for which it was created on lands, whether publicly or 11-13 privately owned. 11-14 (b) Before the district may construct an improvement or 11-15 facility on lands owned by the county, the state, a municipality, 11-16 or another political subdivision, the district must obtain from the 11-17 entity prior approval of the plans and specifications of the 11-18 improvement or facility and any required easement, lease, or 11-19 permit. 11-20 (c) The district shall bear all of the costs, expenses, and 11-21 damages suffered by owners of property or facilities if the 11-22 district, in exercising any of the powers conferred by this Act, 11-23 requires the relocation, adjustment, raising, lowering, rerouting, 11-24 or changing the grade of or altering the construction of any: 11-25 (1) streets, alleys, highways, overpasses, 11-26 underpasses, or roads; 12-1 (2) railroad tracks, bridges, or other facilities or 12-2 property; 12-3 (3) electric lines, conduits, or other facilities or 12-4 property; 12-5 (4) telephone or telegraph lines, conduits, or other 12-6 facilities or property; 12-7 (5) gas transmission or distribution pipes, pipelines, 12-8 mains, or other facilities or property; 12-9 (6) water, sanitary sewer or storm sewer pipes, 12-10 pipelines, mains, or other facilities or property; 12-11 (7) cable television lines, cables, conduits, or other 12-12 facilities or property; or 12-13 (8) other pipelines and any facilities or properties 12-14 relating to those pipelines. 12-15 SECTION 14. PROTECTION OF PUBLIC BEACHES. (a) The district 12-16 is not an agency, department, institution, subdivision, or 12-17 instrumentality of this state for purposes of Section 61.022, 12-18 Natural Resources Code. 12-19 (b) Construction by the district in a critical dune area 12-20 identified by the commissioner of the General Land Office under 12-21 Section 63.121, Natural Resources Code, that affects or that may 12-22 affect public health or public access to or use of a public beach 12-23 must be approved by an order of the commissioners court of the 12-24 county as provided by Subchapter C, Chapter 63, Natural Resources 12-25 Code. Construction by the district on land adjacent to and 12-26 landward of a public beach that affects or that may affect public 13-1 health or public access to or use of the public beach must be 13-2 approved by an order of the commissioners court of the county as 13-3 provided by Section 61.015, Natural Resources Code. After the 13-4 commissioners court by order approves the construction in a 13-5 critical dune area or on land adjacent to and landward of a public 13-6 beach, the district shall submit the order and supporting 13-7 documentation to the General Land Office for approval, disapproval, 13-8 comment, or other action considered appropriate by the General Land 13-9 Office and to the office of the attorney general. The district may 13-10 not begin the construction without the prior approval of the 13-11 General Land Office. The district may not construct or undertake a 13-12 project on a public beach seaward of the natural vegetation line, 13-13 as defined by Section 61.001, Natural Resources Code. The district 13-14 may provide district funds for a state, county, or local government 13-15 project that complies with Section 61.022, Natural Resources Code, 13-16 for the protection of the shore or another lawful purpose. 13-17 SECTION 15. NO EMINENT DOMAIN POWER. The district may not 13-18 exercise the power of eminent domain. The county may exercise its 13-19 power of eminent domain to implement a district facility or 13-20 improvement. 13-21 SECTION 16. POWERS AND DUTIES OF BOARD. (a) The 13-22 responsibility for the management, operation, and control of the 13-23 property belonging to the district is vested in the board. 13-24 (b) The board may: 13-25 (1) employ all persons, firms, partnerships, or 13-26 corporations considered necessary by the board for the conduct of 14-1 the affairs of the district, including a general manager, 14-2 bookkeepers, auditors, engineers, attorneys, financial advisers, 14-3 peace or traffic control officers, architects, and operating or 14-4 management companies, and prescribe the duties, tenure, and 14-5 compensation of each; 14-6 (2) dismiss employees; 14-7 (3) adopt a seal for the district; 14-8 (4) invest the district's money in any investments 14-9 authorized by Subchapter A, Chapter 2256, Government Code, and 14-10 provide, by resolution, that an authorized representative manage 14-11 the district's funds and invest and reinvest the money on terms the 14-12 board considers advisable; 14-13 (5) establish a fiscal year for the district; 14-14 (6) establish a complete system of accounts for the 14-15 district; and 14-16 (7) designate one or more banks to serve as the 14-17 depository bank or banks. 14-18 (c) Each year the board shall have prepared an audit of the 14-19 district's affairs by an independent certified public accountant or 14-20 a firm of independent certified public accountants. The audit 14-21 prepared under this subsection must be open to public inspection. 14-22 (d) Money of the district shall be deposited in the 14-23 depository bank or banks unless otherwise required by orders or 14-24 resolutions authorizing the issuance of the district's bonds. To 14-25 the extent that money in the depository bank or banks is not 14-26 insured by the Federal Deposit Insurance Corporation, the money 15-1 must be secured in the manner provided by law for the security of 15-2 funds of counties. The board by resolution may authorize a 15-3 designated representative to supervise the substitution of 15-4 securities pledged to secure the district's money. 15-5 (e) The board may adopt and enforce reasonable rules 15-6 governing the administration of the district and its programs and 15-7 projects. 15-8 (f) The name of the district may be established or changed 15-9 by resolution of the board. 15-10 SECTION 17. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT. 15-11 (a) The board may appoint a hearings examiner to conduct any 15-12 hearing called by the board, including a hearing required by 15-13 Chapter 395, Local Government Code. The hearings examiner may be 15-14 an employee of the district or a member of the board. 15-15 (b) The hearing shall be conducted in accordance with 15-16 Chapter 2001, Government Code. 15-17 SECTION 18. GENERAL POWERS RELATING TO ASSESSMENTS; 15-18 IMPROVEMENT PROJECTS. (a) The board may impose and collect an 15-19 assessment for any purpose authorized by and in the manner provided 15-20 by this Act if the commissioners court of the county approves the 15-21 assessment. 15-22 (b) The board may undertake an improvement project or 15-23 service that confers a special benefit on all or a definable part 15-24 of the district. The board may impose and collect a special 15-25 assessment on property in that area, based on the benefit conferred 15-26 by the improvement project or service, to pay all or part of the 16-1 cost of the project or service. If the board determines that there 16-2 is a benefit to the district, the district may provide an 16-3 improvement or service to an area outside the boundaries of the 16-4 district. 16-5 (c) The district may not undertake an improvement project or 16-6 provide a service unless the district uses a method approved by the 16-7 General Land Office, the office of the attorney general, or any 16-8 other governmental entity with the authority to regulate the 16-9 improvement project or service. 16-10 SECTION 19. PROPOSED ASSESSMENTS. An improvement project or 16-11 service may be financed under this Act after notice of a hearing is 16-12 given as required by Section 21 of this Act and the board holds a 16-13 public hearing on the advisability of the improvement project or 16-14 service and the proposed assessment. 16-15 SECTION 20. PETITION REQUIRED. The board may finance an 16-16 improvement project or service if a written petition is filed with 16-17 the board requesting the improvement project or service. If more 16-18 than 25 persons are qualified voters of the district and own real 16-19 property in the district, according to the most recent certified 16-20 property tax rolls, the petition must be signed by at least 25 16-21 persons who are qualified voters of the district and who own real 16-22 property in the district. 16-23 SECTION 21. NOTICE OF HEARING. (a) Notice of the hearing 16-24 shall be given in a newspaper with general circulation in the 16-25 county. The publication must be made not later than the 30th day 16-26 before the date of the hearing. 17-1 (b) The notice must include: 17-2 (1) the time and place of the hearing; 17-3 (2) the general nature of the proposed improvement 17-4 project or service; 17-5 (3) the estimated cost of the improvement project or 17-6 service, including interest during construction and associated 17-7 financing costs; and 17-8 (4) the proposed method of assessment. 17-9 (c) Written notice containing the information required by 17-10 this section shall be mailed by certified mail, return receipt 17-11 requested, not later than the 30th day before the date of the 17-12 hearing to each property owner in the district who will be subject 17-13 to assessment at the current address of the property to be assessed 17-14 as reflected on the tax rolls or the address provided by the 17-15 property owner for tax purposes. 17-16 SECTION 22. CONCLUSION OF HEARING; FINDINGS. (a) A hearing 17-17 on the improvement project or service, whether conducted by the 17-18 board or a hearings examiner, may be adjourned from time to time. 17-19 (b) If the board conducts the hearing, at the conclusion of 17-20 the hearing the board shall make findings by resolution or order 17-21 relating to the advisability of the improvement project or service, 17-22 the estimated cost, the area benefited, the method of assessment, 17-23 and the method and time for payment of the assessment. 17-24 (c) If a hearings examiner is appointed to conduct the 17-25 hearing, after conclusion of the hearing the hearings examiner 17-26 shall file with the board a report stating the examiner's findings 18-1 and conclusions. Based on the findings and conclusions of the 18-2 hearings examiner, the board shall make findings by resolution or 18-3 order relating to the advisability of the improvement project or 18-4 service, the estimated cost, the area benefited, the method of 18-5 assessment, and the method and time for payment of the assessment. 18-6 SECTION 23. AREA TO BE ASSESSED. (a) The area of the 18-7 district to be assessed according to the findings of the board may 18-8 be the entire district or any part of the district and may be less 18-9 than the area proposed in the notice of the hearing. 18-10 (b) Except as provided by Subsection (c) of this section, 18-11 the area to be assessed may not include property that is not within 18-12 the district boundaries at the time of the hearing unless there is 18-13 an additional hearing preceded by the required notice. 18-14 (c) The owner of improvements constructed or land annexed to 18-15 the district after the district has imposed an assessment may waive 18-16 the right to notice and an assessment hearing and may agree to the 18-17 imposition and payment of an assessment at an agreed rate for 18-18 improvements constructed or land annexed to the district. 18-19 SECTION 24. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a) At a 18-20 hearing on proposed assessments, at any adjournment of the hearing 18-21 or after consideration of the hearings examiner's report, the board 18-22 shall hear and rule on all objections to each proposed assessment. 18-23 (b) The board may amend a proposed assessment for any 18-24 parcel. 18-25 (c) After all objections have been heard and action has been 18-26 taken with regard to those objections, the board, by order or 19-1 resolution, shall impose the assessment as a special assessment on 19-2 the property, shall specify the method of payment of the 19-3 assessment, and may provide that the assessment be paid in periodic 19-4 installments, including interest. 19-5 (d) A periodic installment of the payment of an assessment 19-6 shall be in an amount sufficient to meet annual costs for 19-7 improvements and services as provided by this Act and continue for 19-8 the number of years required to retire indebtedness or pay for the 19-9 services to be rendered. The board may provide interest charges or 19-10 penalties for failure to make timely payment and may impose an 19-11 amount to cover delinquencies and expenses of collection. 19-12 (e) If an assessment is imposed for more than one 19-13 improvement project or service, the board may provide that an 19-14 assessment collected for one improvement project or service may be 19-15 borrowed to be used for another improvement project or service. 19-16 (f) The board shall establish a procedure for the 19-17 distribution or use of any assessment in excess of those necessary 19-18 to finance the improvement project or service for which the 19-19 assessment was collected. 19-20 SECTION 25. APPORTIONMENT OF COST. The portion of the cost 19-21 of an improvement project or service to be assessed against the 19-22 property in the district shall be apportioned by the board based on 19-23 the special benefits accruing to the property because of the 19-24 improvement project or service. The cost may be assessed: 19-25 (1) equally by front foot or square foot of land area 19-26 against all property in the district; 20-1 (2) according to the value of the property as 20-2 determined by the board, with or without regard to structures or 20-3 other improvements on the property; or 20-4 (3) using any other reasonable assessment plan that 20-5 results in imposing fair and equitable shares of the cost on 20-6 property similarly benefited. 20-7 SECTION 26. ASSESSMENT ROLL. The board shall impose the 20-8 assessment against each parcel of land against which an assessment 20-9 may be imposed in the district after the total cost of an 20-10 improvement project or service is determined. With regard to an 20-11 assessment for services, the board may impose an additional annual 20-12 assessment that may be lower but not higher than the initial 20-13 assessment. The board shall have an assessment roll prepared 20-14 showing the assessment against each property and the board's basis 20-15 for the assessment. The assessment roll shall be filed with the 20-16 secretary of the board or other officer who performs the function 20-17 of secretary and shall be open for public inspection. 20-18 SECTION 27. INTEREST ON ASSESSMENTS; LIEN. (a) An 20-19 assessment bears interest at a rate specified by the board that may 20-20 not exceed the interest rate permitted by Chapter 1204, Government 20-21 Code. 20-22 (b) Interest on an assessment between the effective date of 20-23 the order or resolution imposing the assessment and the date the 20-24 first installment and any related penalty is payable shall be added 20-25 to the first installment. The interest or penalties on all unpaid 20-26 installments shall be added to each subsequent installment until 21-1 paid. 21-2 (c) Assessments, reassessments or assessments resulting from 21-3 an addition to or correction of the assessment roll by the 21-4 district, penalties and interest on an assessment or reassessment, 21-5 expenses of collection, and reasonable attorney's fees incurred by 21-6 the district are: 21-7 (1) a first and prior lien against the property 21-8 assessed; 21-9 (2) superior to any other lien or claim other than a 21-10 lien or claim for county, school district, or municipal ad valorem 21-11 taxes; and 21-12 (3) the personal liability of and charge against the 21-13 owners of the property even if the owners are not named in the 21-14 assessment proceedings. 21-15 (d) The lien is effective from the date of the resolution of 21-16 the board imposing the assessment until the assessment is paid. 21-17 The board may enforce the lien in the same manner that the board 21-18 may enforce an ad valorem tax lien against real property. 21-19 (e) The owner of any property assessed may pay at any time 21-20 the entire assessment against any lot or parcel with accrued 21-21 interest to the date of the payment. 21-22 SECTION 28. SUPPLEMENTAL ASSESSMENTS. After notice and 21-23 hearing in the manner required for original assessments, the board 21-24 may make supplemental assessments to correct omissions or mistakes 21-25 in the assessment: 21-26 (1) relating to the total cost of the improvement 22-1 project or service; or 22-2 (2) covering delinquencies or costs of collection. 22-3 SECTION 29. APPEAL. (a) After determination of an 22-4 assessment, a property owner against whom an assessment is made may 22-5 appeal the assessment to the board. The property owner must file a 22-6 notice of appeal with the board not later than the 30th day after 22-7 the date that the assessment is adopted. The board shall set a 22-8 date to hear the appeal. 22-9 (b) The property owner may appeal the board's decision on 22-10 the assessment to a district court in the county in the manner 22-11 provided for the appeal of contested cases in Chapter 2001, 22-12 Government Code. The property owner must file notice of the appeal 22-13 with the district court not later than the 30th day after the date 22-14 of the board's final decision with respect to the assessment. 22-15 Review by the district court is by trial de novo. 22-16 (c) Failure to file a notice of appeal in the time required 22-17 by this section results in a loss of the right to appeal the 22-18 assessment. 22-19 (d) If an assessment against a parcel of land is set aside 22-20 by the district court, found excessive by the board, or determined 22-21 to be invalid by the board, the board may make a reassessment or 22-22 new assessment of the parcel. 22-23 SECTION 30. APPROVAL OF COMMISSIONERS COURT. An ad valorem 22-24 tax, an assessment, or a combination of an ad valorem tax and an 22-25 assessment, including an apportionment of an assessment, must be 22-26 approved by the commissioners court of the county. 23-1 SECTION 31. EXEMPTIONS. (a) The district may not impose an 23-2 assessment on the property, equipment, or facilities of a public 23-3 utility. For purposes of this section, "utility" means a person 23-4 that provides to the public gas, electricity, telephone, sewerage, 23-5 or water service. 23-6 (b) Payment of assessments by municipalities, counties, 23-7 other political subdivisions, and organizations exempt from federal 23-8 income tax under Section 501(a), Internal Revenue Code of 1986, by 23-9 being listed under Section 501(c)(3), Internal Revenue Code of 23-10 1986, shall be established by contract. Municipalities, counties, 23-11 and other political subdivisions may contract with the district 23-12 under terms and conditions those entities consider advisable to 23-13 provide for the payment of assessments. 23-14 SECTION 32. TAX FOR BONDS. At the time bonds payable wholly 23-15 or partly from taxes are issued, the board shall impose a 23-16 continuing direct annual ad valorem tax, for each year that all or 23-17 part of the bonds are outstanding, on all taxable property within 23-18 the district in a sufficient amount to pay the interest on the 23-19 bonds as it becomes due, to create a sinking fund for the payment 23-20 of the principal of the bonds when due or the redemption price at 23-21 any earlier required redemption rate, and to pay the expenses of 23-22 assessing and collecting the taxes. 23-23 SECTION 33. ESTABLISHMENT OF TAX RATE IN EACH YEAR. (a) In 23-24 determining the actual rate to be imposed in each year, the board 23-25 shall consider: 23-26 (1) the amount that is necessary for maintenance and 24-1 operation purposes, if an operation and maintenance tax has been 24-2 authorized as provided by Section 34 of this Act; 24-3 (2) the amount that is necessary for the payment of 24-4 principal, interest, and redemption price of each series of bonds 24-5 payable wholly or partly from taxes; 24-6 (3) the amount that is necessary for the purpose of 24-7 paying all other contractual obligations of the district payable 24-8 wholly or partly from taxes; or 24-9 (4) the percentage of anticipated tax collections and 24-10 the cost of collecting the taxes. 24-11 (b) In determining the amount of taxes that are necessary 24-12 each year, the board may consider whether proceeds from the sale of 24-13 bonds have been placed in escrow to pay interest during 24-14 construction and whether the board reasonably expects to have 24-15 revenue or receipts available for other sources that are legally 24-16 available to pay the principal of or interest on or redemption 24-17 price of the bonds. The board shall impose a tax in the first full 24-18 year after issuance of its first series of bonds. 24-19 SECTION 34. OPERATION AND MAINTENANCE TAX. (a) The 24-20 district may impose and collect a tax for operation and maintenance 24-21 purposes, including funds for planning, constructing, acquiring, 24-22 maintaining, repairing, and operating all necessary land, plants, 24-23 works, facilities, improvements, appliances, and equipment of the 24-24 district and for paying costs of proper services, engineering and 24-25 legal fees, and organization and administrative expenses. 24-26 (b) An operation and maintenance tax may not be imposed by 25-1 the district until it is approved by a majority of the qualified 25-2 voters within the district voting at an election held for that 25-3 purpose. After the district's voters have authorized an operation 25-4 and maintenance tax, the board may impose the tax and have it 25-5 assessed and collected as other district taxes. 25-6 (c) An operation and maintenance tax election may be held at 25-7 the same time and in conjunction with any other district election. 25-8 The election may be called by a separate election order or as part 25-9 of any other election order. 25-10 (d) The proposition in an operation and maintenance tax 25-11 election may be for a specific maximum rate or for an unlimited 25-12 rate. 25-13 (e) If the district has any surplus operation and 25-14 maintenance tax funds that are not needed for the purposes for 25-15 which they were collected, the funds may be used for any lawful 25-16 purpose. 25-17 SECTION 35. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND 25-18 SERVICES. (a) The cost of any improvement project or service, 25-19 including interest during construction and costs of issuance of 25-20 bonds, may be paid from general or available funds, ad valorem 25-21 taxes, assessments, or the proceeds of bonds payable from revenues, 25-22 ad valorem assessments, grants, gifts, contracts, or leases, or any 25-23 combination of those funds. 25-24 (b) During the progress of an improvement project or 25-25 service, the board may issue temporary notes to pay the costs of 25-26 the improvement project or service and issue bonds on completion. 26-1 (c) The costs of more than one improvement project or 26-2 service may be paid from a single issue and sale of bonds without 26-3 other consolidation proceeding before the bond issue. 26-4 SECTION 36. BONDS. (a) For the payment of all or part of 26-5 the costs of an improvement project or service, the board may issue 26-6 bonds in one or more series payable from and secured by 26-7 assessments, ad valorem taxes, revenues, grants, gifts, contracts, 26-8 or leases, or any combination of those funds. Bonds may be liens 26-9 on all or part of the revenue derived from improvements authorized 26-10 under this Act, including installment payments of special 26-11 assessments, ad valorem taxes, or any other source pledged to their 26-12 payment. 26-13 (b) The district may issue bonds, and the bonds shall be 26-14 approved in the manner prescribed by Subchapter J, Chapter 375, 26-15 Local Government Code. 26-16 (c) The board may issue and approve bonds without the 26-17 consent of the county, any municipality, or the commission. 26-18 SECTION 37. ELECTION TO APPROVE ISSUANCE OF BONDS. 26-19 (a) Bonds secured by assessments or ad valorem taxes, or a 26-20 combination of assessments and ad valorem taxes, may not be issued 26-21 unless the bonds are approved by a majority of the qualified voters 26-22 in the district voting at an election held for that purpose. 26-23 (b) Bonds that are not secured by assessments or ad valorem 26-24 taxes, or a combination of assessments and ad valorem taxes, may be 26-25 issued without an election. 26-26 (c) An election required by this section shall be conducted 27-1 in accordance with Chapter 375, Local Government Code. 27-2 SECTION 38. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS 27-3 CONTRACTS. (a) Contracts of the district are subject to the 27-4 competitive bidding requirements of Subchapter I, Chapter 49, Water 27-5 Code. 27-6 (b) This Act states the required procedures necessary for 27-7 the district to award contracts and supersedes any law or other 27-8 requirement with respect to the award of contracts. 27-9 SECTION 39. DISSOLUTION. (a) Except as provided by 27-10 Subsection (c) of this section, the board by majority vote may 27-11 dissolve the district at any time. 27-12 (b) Except as provided by Subsection (c) of this section, 27-13 the commissioners court of the county, by a vote of not less than 27-14 two-thirds, may adopt a resolution dissolving the district. 27-15 (c) The district may not be dissolved if the district has 27-16 any outstanding bonded indebtedness until that bonded indebtedness 27-17 is repaid or decreased in accordance with the order or resolution 27-18 authorizing the issuance of the bonds. 27-19 SECTION 40. CONTRACTS WITH DISTRICT. (a) A municipality, 27-20 county, or other political subdivision of the state, without 27-21 further authorization, may contract with the district to implement 27-22 a project of the district or aid and assist the district in 27-23 providing the services authorized under this Act. A contract under 27-24 this section may: 27-25 (1) be for a period on which the parties agree; 27-26 (2) include terms on which the parties agree; 28-1 (3) be payable from assessments or any other sources 28-2 of revenue that may be available for that purpose; or 28-3 (4) provide that assessments or other revenue 28-4 collected at a district project or from a person using or 28-5 purchasing a commodity or service at a district project may be paid 28-6 or rebated to the district under the terms of the contract. 28-7 (b) The district may enter into a contract, lease, or 28-8 agreement with or make or accept grants and loans to or from: 28-9 (1) the United States, including federal departments 28-10 and agencies; 28-11 (2) the state or a state agency; 28-12 (3) a county, municipality, or other political 28-13 subdivision of the state; 28-14 (4) a public or private corporation; or 28-15 (5) any other person. 28-16 (c) The district may perform all acts necessary for the full 28-17 exercise of the powers vested in the district on terms and for the 28-18 term the board may determine to be advisable. 28-19 SECTION 41. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 28-20 The legislature finds that: 28-21 (1) the proper and legal notice of the intention to 28-22 introduce this Act, setting forth the general substance of this 28-23 Act, has been published as provided by law, and the notice and a 28-24 copy of this Act have been furnished to all persons, agencies, 28-25 officials, and entities to which they are required to be furnished 28-26 by the constitution and laws of this state, including the governor, 29-1 who has submitted the notice and Act to the commission; 29-2 (2) the commission has filed its recommendations 29-3 relating to this Act with the governor, lieutenant governor, and 29-4 speaker of the house of representatives within the required time; 29-5 (3) the general law relating to consent by political 29-6 subdivisions to the creation of districts with conservation, 29-7 reclamation, and road powers and the inclusion of land in those 29-8 districts has been complied with; and 29-9 (4) all requirements of the constitution and laws of 29-10 this state and the rules and procedures of the legislature with 29-11 respect to the notice, introduction, and passage of this Act have 29-12 been fulfilled and accomplished. 29-13 SECTION 42. EFFECTIVE DATE. This Act takes effect 29-14 immediately if it receives a vote of two-thirds of all the members 29-15 elected to each house, as provided by Section 39, Article III, 29-16 Texas Constitution. If this Act does not receive the vote 29-17 necessary for immediate effect, this Act takes effect September 1, 29-18 2001.