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 other than the creation of a navigation district or a port 1-13 authority. 1-14 (c) The creation of the district is necessary to promote, 1-15 develop, encourage, and maintain employment, commerce, economic 1-16 development, and the public welfare in the area of the district. 1-17 (d) The creation of the district and this Act may not be 1-18 interpreted to relieve any county or municipality from providing 1-19 services to the area included in the district or to release the 1-20 county or municipality from the obligation it has to provide 1-21 services to that area. The district is created to supplement and 1-22 not supplant the services of the county or municipality. 1-23 (e) All of the land and other property to be included within 1-24 the boundaries of the district will be benefited by the works and 1-25 projects that are to be accomplished and the services to be 2-1 provided by the district under powers conferred by Section 59, 2-2 Article XVI, and Section 52-a, Article III, Texas Constitution, and 2-3 other powers granted in this Act. 2-4 (f) The district is created to serve a public use and 2-5 benefit. 2-6 (g) The creation of the district is essential to further the 2-7 public purposes of development and diversification of the economy 2-8 of the state, the elimination of unemployment and underemployment, 2-9 and the development or expansion of commerce and is in the public 2-10 interest. 2-11 (h) The creation of the district is necessary to protect the 2-12 state's natural resources by restoration and protection of natural 2-13 resources along the boundaries of and within the district, through 2-14 improvement projects, matching fund contributions to improvement 2-15 projects by the state or county, and services provided by the 2-16 district under this Act. 2-17 (i) The creation of the district is necessary to promote, 2-18 develop, and encourage navigation along the state's coastal waters, 2-19 bays, and inlets, including the deepening and widening of 2-20 navigation channels. 2-21 (j) Each improvement project or service authorized by this 2-22 Act is found and declared to carry out a public purpose. 2-23 SECTION 2. CONSTRUCTION OF ACT. This Act shall be liberally 2-24 construed in conformity with the findings and purposes in Section 1 2-25 of this Act. 2-26 SECTION 3. DEFINITIONS. In this Act: 3-1 (1) "Board" means the board of directors of the 3-2 district. 3-3 (2) "Bond" means any type of interest-bearing 3-4 obligation, including a bond, note, bond anticipation note, 3-5 certificate of participation, lease, contract, or other evidence of 3-6 indebtedness. 3-7 (3) "Commission" means the Texas Natural Resource 3-8 Conservation Commission. 3-9 (4) "County" means Galveston County. 3-10 (5) "District" means the West Galveston Island 3-11 Conservation District. 3-12 SECTION 4. GOVERNMENTAL AGENCY. Except as provided by 3-13 Section 14 of this Act, the district is a governmental agency, a 3-14 body politic and corporate, and a political subdivision of the 3-15 state. 3-16 SECTION 5. BOUNDARIES. The district includes all of the 3-17 territory contained in the following described land: 3-18 BEGINNING at the intersection of the southerly projection of 3-19 the centerline of 103rd Street in the City of Galveston, Texas, and 3-20 the mean high tide line of the Gulf of Mexico on Galveston Island; 3-21 Thence along the mean high tide line of the Gulf of Mexico 3-22 and San Luis Pass in a westerly then northerly direction to the 3-23 intersection of such line with the centerline of FM 3005; 3-24 Thence along the centerline of FM 3005 in a westerly 3-25 direction to the intersection of such line with the Galveston 3-26 County-Brazoria County line; 4-1 Thence along the Galveston County-Brazoria County line in a 4-2 northerly direction to the intersection of such line with the 4-3 centerline of the Intracoastal Waterway; 4-4 Thence along the centerline of the Intracoastal Waterway in 4-5 an easterly direction to the intersection of such line with the 4-6 northerly projection of the centerline of 103rd Street in the City 4-7 of Galveston, Texas; and 4-8 Thence along the centerline of 103rd Street in the City of 4-9 Galveston, Texas, and the northerly and southerly projection 4-10 thereof to the PLACE OF BEGINNING. 4-11 SECTION 6. FINDINGS RELATED TO BOUNDARIES. The boundaries 4-12 and field notes of the district form a closure. If a mistake is 4-13 made in the field notes or in copying the field notes in the 4-14 legislative process, it does not affect the district's: 4-15 (1) organization, existence, or validity; 4-16 (2) right to issue any type of bond for the purposes 4-17 for which the district is created or to pay the principal of and 4-18 interest on a bond; 4-19 (3) right to impose or collect an assessment or ad 4-20 valorem taxes; or 4-21 (4) legality or operation. 4-22 SECTION 7. CONFIRMATION ELECTION. (a) The initial 4-23 directors shall meet as soon as practicable after all initial 4-24 directors have qualified for office. At the first meeting of the 4-25 board, the board shall call an election to be held within the 4-26 boundaries of the district to confirm the creation of the district. 5-1 Qualifications for voting in any election in the district are the 5-2 same as those set forth in Section 10 of this Act as qualifications 5-3 necessary to serve as a director for the district. The election 5-4 must be held on the first uniform election date provided by Section 5-5 41.001, Election Code, that falls on or after the 45th day after 5-6 the date of the order calling the election. 5-7 (b) The district may not issue any bonds or other 5-8 obligations, impose an assessment or ad valorem tax, or conduct any 5-9 other activity before a confirmation election is held. 5-10 (c) The board shall give notice of the confirmation 5-11 election. The notice must state: 5-12 (1) the nature of the election, including the 5-13 proposition that is to appear on the ballot; 5-14 (2) the date of the election; 5-15 (3) the hours during which the polls will be open; and 5-16 (4) the location of the polling places. 5-17 (d) The ballot shall be printed to permit voting "For 5-18 District" or "Against District." 5-19 (e) Immediately after the confirmation election, the 5-20 presiding judge of each election precinct shall take returns of the 5-21 result to the board. The board shall canvass the returns and 5-22 declare the results at the earliest practicable time. 5-23 (f) If a majority of the votes cast in the election favor 5-24 the creation of the district, the board shall declare that the 5-25 district is created and enter the result in its minutes. If a 5-26 majority of the votes cast in the election are against the creation 6-1 of the district, the board shall declare that the proposition to 6-2 create the district was defeated and enter the result in its 6-3 minutes. A certified copy of the minute order declaring that the 6-4 district is created or declaring that the proposition to create the 6-5 district was defeated shall be filed with the commission. 6-6 (g) If the proposition to create the district is defeated, 6-7 another election to confirm the creation of the district may not be 6-8 held until the expiration of six months after the date of the most 6-9 recent confirmation election. The board may not call more than 6-10 three confirmation elections. 6-11 (h) The order canvassing the results of the confirmation 6-12 election shall contain a description of the district's boundaries 6-13 and shall be filed with the executive director of the commission 6-14 and in the deed records of the county. 6-15 SECTION 8. ANNEXATION. The district may annex land as 6-16 provided by Subchapter J, Chapter 49, Water Code, subject to the 6-17 approval of the commissioners court of the county. 6-18 SECTION 9. EXCLUDING TERRITORY. (a) At any time during 6-19 which the district does not have outstanding bonds, the board on 6-20 its own motion may call a hearing on the question of the exclusion 6-21 of land from the district in the manner provided by Subchapter J, 6-22 Chapter 49, Water Code, if the board finds that the exclusions are 6-23 practicable, just, or desirable. 6-24 (b) The board shall call a hearing on the exclusion of land 6-25 or other property from the district if a landowner or property 6-26 owner in the district files with the secretary of the board a 7-1 written petition requesting the hearing before the issuance of 7-2 bonds. 7-3 SECTION 10. BOARD OF DIRECTORS. (a) The district is 7-4 governed by an initial board of five directors who shall serve 7-5 until their successors are elected as provided for by this section. 7-6 (b) The commissioners court of the county shall appoint the 7-7 initial directors from persons recommended by members of the 7-8 commissioners court. A person is appointed if the county judge and 7-9 a majority of the commissioners of the county vote to appoint that 7-10 person. 7-11 (c) As soon as practicable after the first anniversary of 7-12 the date on which the creation of the district is confirmed, the 7-13 board shall call and hold an election to elect the initial 7-14 permanent directors. 7-15 (d) The election shall be held in the manner provided by 7-16 Section 49.102, Water Code. 7-17 (e) The election must be held on the first uniform election 7-18 date provided by Section 41.001, Election Code, that falls on or 7-19 after the 45th day after the date of the order calling the 7-20 election. The initial permanent directors elected at the election 7-21 shall draw lots to determine their terms so that two serve terms 7-22 expiring on the first July 1 of an odd-numbered year after the 7-23 election and three serve terms expiring July 1 of the second year 7-24 after the year in which the first terms expire. 7-25 (f) An election to elect the appropriate number of successor 7-26 directors shall be held on the uniform election date, established 8-1 by the Election Code, in May of each odd-numbered year. 8-2 (g) To be qualified to serve as a director, a person must be 8-3 at least 18 years old and: 8-4 (1) a resident and qualified voter of the district; 8-5 and 8-6 (2) an owner of property in the district. 8-7 (h) A director may serve successive terms. 8-8 (i) The commissioners court may remove a director for 8-9 misconduct or failure to carry out the director's duties or for any 8-10 other reason on petition by a majority of the remaining directors 8-11 or a majority of the commissioners court and after notice and 8-12 hearing. 8-13 (j) A vacancy in the office of director shall be filled by 8-14 appointment by the commissioners court for the unexpired term. 8-15 (k) As soon as practicable after a director is appointed or 8-16 elected, the director shall execute a $10,000 bond payable to the 8-17 district and conditioned on the faithful performance of the 8-18 director's duties. Each director's bond must be approved by the 8-19 board, and each director shall take the oath of office for public 8-20 officers prescribed by the constitution of this state. The bond 8-21 and oath shall be filed with the district and retained in its 8-22 records. 8-23 (l) After directors are appointed or elected and have 8-24 qualified by executing a bond and taking the oath, they shall 8-25 organize by electing a president, a vice president, a secretary, 8-26 and any other officers the board considers necessary. The board 9-1 shall hold successive elections of officers every two years after 9-2 the election of the initial officers as provided by this 9-3 subsection. 9-4 (m) In accordance with Section 49.060, Water Code, a 9-5 director is entitled to compensation for service on the board and 9-6 is entitled to be reimbursed for necessary expenses incurred in 9-7 carrying out the duties and responsibilities of a director. 9-8 (n) A majority of the directors constitutes a quorum. 9-9 (o) The vote of a majority of directors is required for any 9-10 official action of the district. 9-11 SECTION 11. GENERAL POWERS OF DISTRICT. (a) Except for the 9-12 limitations set forth in this Act, the district has the rights, 9-13 powers, privileges, authority, and functions conferred by the 9-14 general law of this state applicable to conservation and 9-15 reclamation districts created under Section 59, Article XVI, Texas 9-16 Constitution, including those conferred by Chapter 54, Water Code, 9-17 with respect to the purposes for which the district is created. 9-18 (b) The district may contract and manage its affairs and 9-19 funds for any district purpose in accordance with Chapter 54, Water 9-20 Code. 9-21 SECTION 12. SPECIFIC POWERS AND DUTIES OF DISTRICT. (a) A 9-22 district has the powers necessary or convenient to carry out and 9-23 effect the purposes and provisions of this Act, including the 9-24 powers granted in this section. 9-25 (b) The district has perpetual succession. 9-26 (c) The district may: 10-1 (1) sue and be sued in courts of competent 10-2 jurisdiction, and institute and prosecute suits; 10-3 (2) incur liabilities and borrow money on terms the 10-4 board determines; 10-5 (3) issue bonds; 10-6 (4) acquire by grant, purchase, gift, devise, lease, 10-7 or otherwise and hold, use, sell, lease, or dispose of real and 10-8 personal property, licenses, patents, rights, and interests 10-9 necessary, convenient, or useful for the full exercise of any of 10-10 its powers under this Act; 10-11 (5) acquire, construct, complete, develop, own, 10-12 operate, and maintain permanent improvements and provide services 10-13 inside and outside its boundaries, except as specifically limited 10-14 in this Act; 10-15 (6) enter into agreements with a public or private 10-16 person for the joint use of facilities, installations, and 10-17 property; 10-18 (7) enter into contracts, leases, and agreements with 10-19 and accept grants and loans from the United States and its 10-20 departments and agencies, the state and its agencies, counties, 10-21 municipalities, and political subdivisions, public or private 10-22 corporations, and other persons and perform all acts necessary for 10-23 the full exercise of the powers vested in it on terms and for the 10-24 term the board may determine to be advisable; 10-25 (8) acquire property under conditional sales 10-26 contracts, leases, equipment trust certificates, or any other form 11-1 of contract or trust agreement; 11-2 (9) sell, lease, convey, or otherwise dispose of any 11-3 of its rights, interests, or properties that are not needed for or, 11-4 in the case of leases, that are not consistent with, the efficient 11-5 operation and maintenance of the district's improvements; 11-6 (10) sell, lease, or otherwise dispose of any surplus 11-7 material or personal or real property not needed for its 11-8 requirements or for the purpose of carrying out its powers under 11-9 this Act; 11-10 (11) procure and pay premiums to insurers for 11-11 insurance of any type in amounts considered necessary or advisable 11-12 by the board; and 11-13 (12) do anything necessary, convenient, or desirable 11-14 to carry out the powers expressly granted or implied by this Act. 11-15 SECTION 13. USE AND ALTERATION OF LAND AND PUBLIC WAYS. 11-16 (a) Except as otherwise provided by this Act, the district may 11-17 construct all improvements and facilities necessary to accomplish 11-18 the purposes for which it was created on lands, whether publicly or 11-19 privately owned. 11-20 (b) Before the district may construct an improvement or 11-21 facility on lands owned by the county, the state, a municipality, 11-22 or another political subdivision, the district must obtain from the 11-23 entity prior approval of the plans and specifications of the 11-24 improvement or facility and any required easement, lease, or 11-25 permit. 11-26 (c) The district shall bear all of the costs, expenses, and 12-1 damages suffered by owners of property or facilities if the 12-2 district, in exercising any of the powers conferred by this Act, 12-3 requires the relocation, adjustment, raising, lowering, rerouting, 12-4 or changing the grade of or altering the construction of any: 12-5 (1) streets, alleys, highways, overpasses, 12-6 underpasses, or roads; 12-7 (2) railroad tracks, bridges, or other facilities or 12-8 property; 12-9 (3) electric lines, conduits, or other facilities or 12-10 property; 12-11 (4) telephone or telegraph lines, conduits, or other 12-12 facilities or property; 12-13 (5) gas transmission or distribution pipes, pipelines, 12-14 mains, or other facilities or property; 12-15 (6) water, sanitary sewer or storm sewer pipes, 12-16 pipelines, mains, or other facilities or property; 12-17 (7) cable television lines, cables, conduits, or other 12-18 facilities or property; or 12-19 (8) other pipelines and any facilities or properties 12-20 relating to those pipelines. 12-21 SECTION 14. PROTECTION OF PUBLIC BEACHES. (a) The district 12-22 is not an agency, department, institution, subdivision, or 12-23 instrumentality of this state for purposes of Section 61.022, 12-24 Natural Resources Code. 12-25 (b) Construction by the district in a critical dune area 12-26 identified by the commissioner of the General Land Office under 13-1 Section 63.121, Natural Resources Code, that affects or that may 13-2 affect public health or public access to or use of a public beach 13-3 must be approved by an order of the commissioners court of the 13-4 county as provided by Subchapter C, Chapter 63, Natural Resources 13-5 Code. Construction by the district on land adjacent to and 13-6 landward of a public beach that affects or that may affect public 13-7 health or public access to or use of the public beach must be 13-8 approved by an order of the commissioners court of the county as 13-9 provided by Section 61.015, Natural Resources Code. The district 13-10 may not construct or undertake a project on a public beach seaward 13-11 of the natural vegetation line, as defined by Section 61.001, 13-12 Natural Resources Code. The district may provide district funds 13-13 for a state, county, or local government project that complies with 13-14 Section 61.022, Natural Resources Code, for the protection of the 13-15 shore or another lawful purpose. 13-16 SECTION 15. NO EMINENT DOMAIN POWER. The district may not 13-17 exercise the power of eminent domain. The county may exercise its 13-18 power of eminent domain to implement a district facility or 13-19 improvement. 13-20 SECTION 16. POWERS AND DUTIES OF BOARD. (a) The 13-21 responsibility for the management, operation, and control of the 13-22 property belonging to the district is vested in the board. 13-23 (b) The board may: 13-24 (1) employ all persons, firms, partnerships, or 13-25 corporations considered necessary by the board for the conduct of 13-26 the affairs of the district, including a general manager, 14-1 bookkeepers, auditors, engineers, attorneys, financial advisers, 14-2 peace or traffic control officers, architects, and operating or 14-3 management companies, and prescribe the duties, tenure, and 14-4 compensation of each; 14-5 (2) dismiss employees; 14-6 (3) adopt a seal for the district; 14-7 (4) invest the district's money in any investments 14-8 authorized by Subchapter A, Chapter 2256, Government Code, and 14-9 provide, by resolution, that an authorized representative manage 14-10 the district's funds and invest and reinvest the money on terms the 14-11 board considers advisable; 14-12 (5) establish a fiscal year for the district; 14-13 (6) establish a complete system of accounts for the 14-14 district; and 14-15 (7) designate one or more banks to serve as the 14-16 depository bank or banks. 14-17 (c) Each year the board shall have prepared an audit of the 14-18 district's affairs by an independent certified public accountant or 14-19 a firm of independent certified public accountants. The audit 14-20 prepared under this subsection must be open to public inspection. 14-21 (d) Money of the district shall be deposited in the 14-22 depository bank or banks unless otherwise required by orders or 14-23 resolutions authorizing the issuance of the district's bonds. To 14-24 the extent that money in the depository bank or banks is not 14-25 insured by the Federal Deposit Insurance Corporation, the money 14-26 must be secured in the manner provided by law for the security of 15-1 funds of counties. The board by resolution may authorize a 15-2 designated representative to supervise the substitution of 15-3 securities pledged to secure the district's money. 15-4 (e) The board may adopt and enforce reasonable rules 15-5 governing the administration of the district and its programs and 15-6 projects. 15-7 (f) The name of the district may be established or changed 15-8 by resolution of the board. 15-9 SECTION 17. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT. 15-10 (a) The board may appoint a hearings examiner to conduct any 15-11 hearing called by the board, including a hearing required by 15-12 Chapter 395, Local Government Code. The hearings examiner may be 15-13 an employee of the district or a member of the board. 15-14 (b) The hearing shall be conducted in accordance with 15-15 Chapter 2001, Government Code. 15-16 SECTION 18. GENERAL POWERS RELATING TO ASSESSMENTS; 15-17 IMPROVEMENT PROJECTS. (a) The board may impose and collect an 15-18 assessment for any purpose authorized by and in the manner provided 15-19 by this Act if the commissioners court of the county approves the 15-20 assessment. 15-21 (b) The board may undertake an improvement project or 15-22 service that confers a special benefit on all or a definable part 15-23 of the district. The board may impose and collect a special 15-24 assessment on property in that area, based on the benefit conferred 15-25 by the improvement project or service, to pay all or part of the 15-26 cost of the project or service. If the board determines that there 16-1 is a benefit to the district, the district may provide an 16-2 improvement or service to an area outside the boundaries of the 16-3 district. 16-4 (c) The district may not undertake an improvement project or 16-5 provide a service unless the district uses a method approved by the 16-6 General Land Office, the office of the attorney general, or any 16-7 other governmental entity with the authority to regulate the 16-8 improvement project or service. 16-9 SECTION 19. PROPOSED ASSESSMENTS. An improvement project or 16-10 service may be financed under this Act after notice of a hearing is 16-11 given as required by Section 21 of this Act and the board holds a 16-12 public hearing on the advisability of the improvement project or 16-13 service and the proposed assessment. 16-14 SECTION 20. PETITION REQUIRED. The board may finance an 16-15 improvement project or service if a written petition is filed with 16-16 the board requesting the improvement project or service. If more 16-17 than 25 persons are qualified voters of the district and own real 16-18 property in the district, according to the most recent certified 16-19 property tax rolls, the petition must be signed by at least 25 16-20 persons who are qualified voters of the district and who own real 16-21 property in the district. 16-22 SECTION 21. NOTICE OF HEARING. (a) Notice of the hearing 16-23 shall be given in a newspaper with general circulation in the 16-24 county. The publication must be made not later than the 30th day 16-25 before the date of the hearing. 16-26 (b) The notice must include: 17-1 (1) the time and place of the hearing; 17-2 (2) the general nature of the proposed improvement 17-3 project or service; 17-4 (3) the estimated cost of the improvement project or 17-5 service, including interest during construction and associated 17-6 financing costs; and 17-7 (4) the proposed method of assessment. 17-8 (c) Written notice containing the information required by 17-9 this section shall be mailed by certified mail, return receipt 17-10 requested, not later than the 30th day before the date of the 17-11 hearing to each property owner in the district who will be subject 17-12 to assessment at the current address of the property to be assessed 17-13 as reflected on the tax rolls or the address provided by the 17-14 property owner for tax purposes. 17-15 SECTION 22. CONCLUSION OF HEARING; FINDINGS. (a) A hearing 17-16 on the improvement project or service, whether conducted by the 17-17 board or a hearings examiner, may be adjourned from time to time. 17-18 (b) If the board conducts the hearing, at the conclusion of 17-19 the hearing the board shall make findings by resolution or order 17-20 relating to the advisability of the improvement project or service, 17-21 the estimated cost, the area benefited, the method of assessment, 17-22 and the method and time for payment of the assessment. 17-23 (c) If a hearings examiner is appointed to conduct the 17-24 hearing, after conclusion of the hearing the hearings examiner 17-25 shall file with the board a report stating the examiner's findings 17-26 and conclusions. Based on the findings and conclusions of the 18-1 hearings examiner, the board shall make findings by resolution or 18-2 order relating to the advisability of the improvement project or 18-3 service, the estimated cost, the area benefited, the method of 18-4 assessment, and the method and time for payment of the assessment. 18-5 SECTION 23. AREA TO BE ASSESSED. (a) The area of the 18-6 district to be assessed according to the findings of the board may 18-7 be the entire district or any part of the district and may be less 18-8 than the area proposed in the notice of the hearing. 18-9 (b) Except as provided by Subsection (c) of this section, 18-10 the area to be assessed may not include property that is not within 18-11 the district boundaries at the time of the hearing unless there is 18-12 an additional hearing preceded by the required notice. 18-13 (c) The owner of improvements constructed or land annexed to 18-14 the district after the district has imposed an assessment may waive 18-15 the right to notice and an assessment hearing and may agree to the 18-16 imposition and payment of an assessment at an agreed rate for 18-17 improvements constructed or land annexed to the district. 18-18 SECTION 24. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a) At a 18-19 hearing on proposed assessments, at any adjournment of the hearing 18-20 or after consideration of the hearings examiner's report, the board 18-21 shall hear and rule on all objections to each proposed assessment. 18-22 (b) The board may amend a proposed assessment for any 18-23 parcel. 18-24 (c) After all objections have been heard and action has been 18-25 taken with regard to those objections, the board, by order or 18-26 resolution, shall impose the assessment as a special assessment on 19-1 the property, shall specify the method of payment of the 19-2 assessment, and may provide that the assessment be paid in periodic 19-3 installments, including interest. 19-4 (d) A periodic installment of the payment of an assessment 19-5 shall be in an amount sufficient to meet annual costs for 19-6 improvements and services as provided by this Act and continue for 19-7 the number of years required to retire indebtedness or pay for the 19-8 services to be rendered. The board may provide interest charges or 19-9 penalties for failure to make timely payment and may impose an 19-10 amount to cover delinquencies and expenses of collection. 19-11 (e) If an assessment is imposed for more than one 19-12 improvement project or service, the board may provide that an 19-13 assessment collected for one improvement project or service may be 19-14 borrowed to be used for another improvement project or service. 19-15 (f) The board shall establish a procedure for the 19-16 distribution or use of any assessment in excess of those necessary 19-17 to finance the improvement project or service for which the 19-18 assessment was collected. 19-19 SECTION 25. APPORTIONMENT OF COST. The portion of the cost 19-20 of an improvement project or service to be assessed against the 19-21 property in the district shall be apportioned by the board based on 19-22 the special benefits accruing to the property because of the 19-23 improvement project or service. The cost may be assessed: 19-24 (1) equally by front foot or square foot of land area 19-25 against all property in the district; 19-26 (2) according to the value of the property as 20-1 determined by the board, with or without regard to structures or 20-2 other improvements on the property; or 20-3 (3) using any other reasonable assessment plan that 20-4 results in imposing fair and equitable shares of the cost on 20-5 property similarly benefited. 20-6 SECTION 26. ASSESSMENT ROLL. The board shall impose the 20-7 assessment against each parcel of land against which an assessment 20-8 may be imposed in the district after the total cost of an 20-9 improvement project or service is determined. With regard to an 20-10 assessment for services, the board may impose an additional annual 20-11 assessment that may be lower but not higher than the initial 20-12 assessment. The board shall have an assessment roll prepared 20-13 showing the assessment against each property and the board's basis 20-14 for the assessment. The assessment roll shall be filed with the 20-15 secretary of the board or other officer who performs the function 20-16 of secretary and shall be open for public inspection. 20-17 SECTION 27. INTEREST ON ASSESSMENTS; LIEN. (a) An 20-18 assessment bears interest at a rate specified by the board that may 20-19 not exceed the interest rate permitted by Chapter 1204, Government 20-20 Code. 20-21 (b) Interest on an assessment between the effective date of 20-22 the order or resolution imposing the assessment and the date the 20-23 first installment and any related penalty is payable shall be added 20-24 to the first installment. The interest or penalties on all unpaid 20-25 installments shall be added to each subsequent installment until 20-26 paid. 21-1 (c) Assessments, reassessments or assessments resulting from 21-2 an addition to or correction of the assessment roll by the 21-3 district, penalties and interest on an assessment or reassessment, 21-4 expenses of collection, and reasonable attorney's fees incurred by 21-5 the district are: 21-6 (1) a first and prior lien against the property 21-7 assessed; 21-8 (2) superior to any other lien or claim other than a 21-9 lien or claim for county, school district, or municipal ad valorem 21-10 taxes; and 21-11 (3) the personal liability of and charge against the 21-12 owners of the property even if the owners are not named in the 21-13 assessment proceedings. 21-14 (d) The lien is effective from the date of the resolution of 21-15 the board imposing the assessment until the assessment is paid. 21-16 The board may enforce the lien in the same manner that the board 21-17 may enforce an ad valorem tax lien against real property. 21-18 (e) The owner of any property assessed may pay at any time 21-19 the entire assessment against any lot or parcel with accrued 21-20 interest to the date of the payment. 21-21 SECTION 28. SUPPLEMENTAL ASSESSMENTS. After notice and 21-22 hearing in the manner required for original assessments, the board 21-23 may make supplemental assessments to correct omissions or mistakes 21-24 in the assessment: 21-25 (1) relating to the total cost of the improvement 21-26 project or service; or 22-1 (2) covering delinquencies or costs of collection. 22-2 SECTION 29. APPEAL. (a) After determination of an 22-3 assessment, a property owner against whom an assessment is made may 22-4 appeal the assessment to the board. The property owner must file a 22-5 notice of appeal with the board not later than the 30th day after 22-6 the date that the assessment is adopted. The board shall set a 22-7 date to hear the appeal. 22-8 (b) The property owner may appeal the board's decision on 22-9 the assessment to a district court in the county in the manner 22-10 provided for the appeal of contested cases in Chapter 2001, 22-11 Government Code. The property owner must file notice of the appeal 22-12 with the district court not later than the 30th day after the date 22-13 of the board's final decision with respect to the assessment. 22-14 Review by the district court is by trial de novo. 22-15 (c) Failure to file a notice of appeal in the time required 22-16 by this section results in a loss of the right to appeal the 22-17 assessment. 22-18 (d) If an assessment against a parcel of land is set aside 22-19 by the district court, found excessive by the board, or determined 22-20 to be invalid by the board, the board may make a reassessment or 22-21 new assessment of the parcel. 22-22 SECTION 30. APPROVAL OF COMMISSIONERS COURT. An ad valorem 22-23 tax, an assessment, or a combination of an ad valorem tax and an 22-24 assessment, including an apportionment of an assessment, must be 22-25 approved by the commissioners court of the county. 22-26 SECTION 31. EXEMPTIONS. (a) The district may not impose an 23-1 assessment on the property, equipment, or facilities of a public 23-2 utility. For purposes of this section, "utility" means a person 23-3 that provides to the public gas, electricity, telephone, sewerage, 23-4 or water service. 23-5 (b) Payment of assessments by municipalities, counties, 23-6 other political subdivisions, and organizations exempt from federal 23-7 income tax under Section 501(a), Internal Revenue Code of 1986, by 23-8 being listed under Section 501(c)(3), Internal Revenue Code of 23-9 1986, shall be established by contract. Municipalities, counties, 23-10 and other political subdivisions may contract with the district 23-11 under terms and conditions those entities consider advisable to 23-12 provide for the payment of assessments. 23-13 SECTION 32. TAX FOR BONDS. At the time bonds payable wholly 23-14 or partly from taxes are issued, the board shall impose a 23-15 continuing direct annual ad valorem tax, for each year that all or 23-16 part of the bonds are outstanding, on all taxable property within 23-17 the district in a sufficient amount to pay the interest on the 23-18 bonds as it becomes due, to create a sinking fund for the payment 23-19 of the principal of the bonds when due or the redemption price at 23-20 any earlier required redemption rate, and to pay the expenses of 23-21 assessing and collecting the taxes. 23-22 SECTION 33. ESTABLISHMENT OF TAX RATE IN EACH YEAR. (a) In 23-23 determining the actual rate to be imposed in each year, the board 23-24 shall consider: 23-25 (1) the amount that is necessary for maintenance and 23-26 operation purposes, if an operation and maintenance tax has been 24-1 authorized as provided by Section 34 of this Act; 24-2 (2) the amount that is necessary for the payment of 24-3 principal, interest, and redemption price of each series of bonds 24-4 payable wholly or partly from taxes; 24-5 (3) the amount that is necessary for the purpose of 24-6 paying all other contractual obligations of the district payable 24-7 wholly or partly from taxes; or 24-8 (4) the percentage of anticipated tax collections and 24-9 the cost of collecting the taxes. 24-10 (b) In determining the amount of taxes that are necessary 24-11 each year, the board may consider whether proceeds from the sale of 24-12 bonds have been placed in escrow to pay interest during 24-13 construction and whether the board reasonably expects to have 24-14 revenue or receipts available for other sources that are legally 24-15 available to pay the principal of or interest on or redemption 24-16 price of the bonds. The board shall impose a tax in the first full 24-17 year after issuance of its first series of bonds. 24-18 SECTION 34. OPERATION AND MAINTENANCE TAX. (a) The 24-19 district may impose and collect a tax for operation and maintenance 24-20 purposes, including funds for planning, constructing, acquiring, 24-21 maintaining, repairing, and operating all necessary land, plants, 24-22 works, facilities, improvements, appliances, and equipment of the 24-23 district and for paying costs of proper services, engineering and 24-24 legal fees, and organization and administrative expenses. 24-25 (b) An operation and maintenance tax may not be imposed by 24-26 the district until it is approved by a majority of the qualified 25-1 voters within the district voting at an election held for that 25-2 purpose. After the district's voters have authorized an operation 25-3 and maintenance tax, the board may impose the tax and have it 25-4 assessed and collected as other district taxes. 25-5 (c) An operation and maintenance tax election may be held at 25-6 the same time and in conjunction with any other district election. 25-7 The election may be called by a separate election order or as part 25-8 of any other election order. 25-9 (d) The proposition in an operation and maintenance tax 25-10 election may be for a specific maximum rate or for an unlimited 25-11 rate. 25-12 (e) If the district has any surplus operation and 25-13 maintenance tax funds that are not needed for the purposes for 25-14 which they were collected, the funds may be used for any lawful 25-15 purpose. 25-16 SECTION 35. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND 25-17 SERVICES. (a) The cost of any improvement project or service, 25-18 including interest during construction and costs of issuance of 25-19 bonds, may be paid from general or available funds, ad valorem 25-20 taxes, assessments, or the proceeds of bonds payable from revenues, 25-21 ad valorem assessments, grants, gifts, contracts, or leases, or any 25-22 combination of those funds. 25-23 (b) During the progress of an improvement project or 25-24 service, the board may issue temporary notes to pay the costs of 25-25 the improvement project or service and issue bonds on completion. 25-26 (c) The costs of more than one improvement project or 26-1 service may be paid from a single issue and sale of bonds without 26-2 other consolidation proceeding before the bond issue. 26-3 SECTION 36. BONDS. (a) For the payment of all or part of 26-4 the costs of an improvement project or service, the board may issue 26-5 bonds in one or more series payable from and secured by 26-6 assessments, ad valorem taxes, revenues, grants, gifts, contracts, 26-7 or leases, or any combination of those funds. Bonds may be liens 26-8 on all or part of the revenue derived from improvements authorized 26-9 under this Act, including installment payments of special 26-10 assessments, ad valorem taxes, or any other source pledged to their 26-11 payment. 26-12 (b) The district may issue bonds, and the bonds shall be 26-13 approved in the manner prescribed by Subchapter J, Chapter 375, 26-14 Local Government Code. 26-15 (c) The board may issue and approve bonds without the 26-16 consent of the county, any municipality, or the commission. 26-17 SECTION 37. ELECTION TO APPROVE ISSUANCE OF BONDS. 26-18 (a) Bonds secured by assessments or ad valorem taxes, or a 26-19 combination of assessments and ad valorem taxes, may not be issued 26-20 unless the bonds are approved by a majority of the qualified voters 26-21 in the district voting at an election held for that purpose. 26-22 (b) Bonds that are not secured by assessments or ad valorem 26-23 taxes, or a combination of assessments and ad valorem taxes, may be 26-24 issued without an election. 26-25 (c) An election required by this section shall be conducted 26-26 in accordance with Chapter 375, Local Government Code. 27-1 SECTION 38. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS 27-2 CONTRACTS. (a) Contracts of the district are subject to the 27-3 competitive bidding requirements of Subchapter I, Chapter 49, Water 27-4 Code. 27-5 (b) This Act states the required procedures necessary for 27-6 the district to award contracts and supersedes any law or other 27-7 requirement with respect to the award of contracts. 27-8 SECTION 39. DISSOLUTION. (a) Except as provided by 27-9 Subsection (c) of this section, the board by majority vote may 27-10 dissolve the district at any time. 27-11 (b) Except as provided by Subsection (c) of this section, 27-12 the commissioners court of the county, by a vote of not less than 27-13 two-thirds, may adopt a resolution dissolving the district. 27-14 (c) The district may not be dissolved if the district has 27-15 any outstanding bonded indebtedness until that bonded indebtedness 27-16 is repaid or decreased in accordance with the order or resolution 27-17 authorizing the issuance of the bonds. 27-18 SECTION 40. CONTRACTS WITH DISTRICT. (a) A municipality, 27-19 county, or other political subdivision of the state, without 27-20 further authorization, may contract with the district to implement 27-21 a project of the district or aid and assist the district in 27-22 providing the services authorized under this Act. A contract under 27-23 this section may: 27-24 (1) be for a period on which the parties agree; 27-25 (2) include terms on which the parties agree; 27-26 (3) be payable from assessments or any other sources 28-1 of revenue that may be available for that purpose; or 28-2 (4) provide that assessments or other revenue 28-3 collected at a district project or from a person using or 28-4 purchasing a commodity or service at a district project may be paid 28-5 or rebated to the district under the terms of the contract. 28-6 (b) The district may enter into a contract, lease, or 28-7 agreement with or make or accept grants and loans to or from: 28-8 (1) the United States, including federal departments 28-9 and agencies; 28-10 (2) the state or a state agency; 28-11 (3) a county, municipality, or other political 28-12 subdivision of the state; 28-13 (4) a public or private corporation; or 28-14 (5) any other person. 28-15 (c) The district may perform all acts necessary for the full 28-16 exercise of the powers vested in the district on terms and for the 28-17 term the board may determine to be advisable. 28-18 SECTION 41. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 28-19 The legislature finds that: 28-20 (1) the proper and legal notice of the intention to 28-21 introduce this Act, setting forth the general substance of this 28-22 Act, has been published as provided by law, and the notice and a 28-23 copy of this Act have been furnished to all persons, agencies, 28-24 officials, and entities to which they are required to be furnished 28-25 by the constitution and laws of this state, including the governor, 28-26 who has submitted the notice and Act to the commission; 29-1 (2) the commission has filed its recommendations 29-2 relating to this Act with the governor, lieutenant governor, and 29-3 speaker of the house of representatives within the required time; 29-4 (3) the general law relating to consent by political 29-5 subdivisions to the creation of districts with conservation, 29-6 reclamation, and road powers and the inclusion of land in those 29-7 districts has been complied with; and 29-8 (4) all requirements of the constitution and laws of 29-9 this state and the rules and procedures of the legislature with 29-10 respect to the notice, introduction, and passage of this Act have 29-11 been fulfilled and accomplished. 29-12 SECTION 42. EFFECTIVE DATE. This Act takes effect 29-13 immediately if it receives a vote of two-thirds of all the members 29-14 elected to each house, as provided by Section 39, Article III, 29-15 Texas Constitution. If this Act does not receive the vote 29-16 necessary for immediate effect, this Act takes effect September 1, 29-17 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1686 passed the Senate on May 4, 2001, by the following vote: Yeas 29, Nays 0, one present not voting; and that the Senate concurred in House amendments on May 25, 2001, by the following vote: Yeas 30, Nays 0, one present not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1686 passed the House, with amendments, on May 23, 2001, by the following vote: Yeas 145, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor