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.