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