1-1 By: Jackson S.B. No. 1686 1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read 1-3 first time and referred to Committee on Natural Resources; 1-4 May 1, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 5, Nays 0; May 1, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1686 By: Bernsen 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of the West Galveston Island Conservation 1-11 District; providing the authority to impose taxes and issue bonds. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. LEGISLATIVE FINDINGS; PURPOSES. (a) The West 1-14 Galveston Island Conservation District is created as a special 1-15 district under Section 59, Article XVI, Texas Constitution. 1-16 (b) The creation of the district is declared to be essential 1-17 to the accomplishment of the purposes of Section 59, Article XVI, 1-18 and Section 52-a, Article III, Texas Constitution, and to the 1-19 accomplishment of the other public purposes stated in this Act. 1-20 (c) The creation of the district is necessary to promote, 1-21 develop, encourage, and maintain employment, commerce, economic 1-22 development, and the public welfare in the area of the district. 1-23 (d) The creation of the district and this Act may not be 1-24 interpreted to relieve any county or municipality from providing 1-25 services to the area included in the district or to release the 1-26 county or municipality from the obligation it has to provide 1-27 services to that area. The district is created to supplement and 1-28 not supplant the services of the county or municipality. 1-29 (e) All of the land and other property to be included within 1-30 the boundaries of the district will be benefited by the works and 1-31 projects that are to be accomplished and the services to be 1-32 provided by the district under powers conferred by Section 59, 1-33 Article XVI, and Section 52-a, Article III, Texas Constitution, and 1-34 other powers granted in this Act. 1-35 (f) The district is created to serve a public use and 1-36 benefit. 1-37 (g) The creation of the district is essential to further the 1-38 public purposes of development and diversification of the economy 1-39 of the state, the elimination of unemployment and underemployment, 1-40 and the development or expansion of commerce and is in the public 1-41 interest. 1-42 (h) The creation of the district is necessary to protect the 1-43 state's natural resources by restoration and protection of natural 1-44 resources along the boundaries of and within the district through 1-45 improvement projects and services provided by the district under 1-46 this Act. 1-47 (i) The creation of the district is necessary to promote, 1-48 develop, and encourage navigation along the state's coastal waters, 1-49 bays, and inlets, including the deepening and widening of 1-50 navigation channels. 1-51 (j) Each improvement project or service authorized by this 1-52 Act is found and declared to carry out a public purpose. 1-53 SECTION 2. CONSTRUCTION OF ACT. (a) This Act shall be 1-54 liberally construed in conformity with the findings and purposes in 1-55 Section 1 of this Act. 1-56 (b) If any provision of general law is in conflict or 1-57 inconsistent with this Act, this Act prevails. Any general law not 1-58 in conflict or inconsistent with this Act is adopted and 1-59 incorporated by reference. 1-60 SECTION 3. DEFINITIONS. In this Act: 1-61 (1) "Board" means the board of directors of the 1-62 district. 1-63 (2) "Bond" means any type of interest-bearing 1-64 obligation, including a bond, note, bond anticipation note, 2-1 certificate of participation, lease, contract, or other evidence of 2-2 indebtedness. 2-3 (3) "Commission" means the Texas Natural Resource 2-4 Conservation Commission. 2-5 (4) "County" means Galveston County. 2-6 (5) "District" means the West Galveston Island 2-7 Conservation District. 2-8 SECTION 4. GOVERNMENTAL AGENCY. The district is a 2-9 governmental agency, a body politic and corporate, and a political 2-10 subdivision of the state. 2-11 SECTION 5. BOUNDARIES. The district includes all of the 2-12 territory contained in the following described land: 2-13 BEGINNING at the intersection of the southerly projection of 2-14 the centerline of 103rd Street in the City of Galveston, Texas, and 2-15 the mean high tide line of the Gulf of Mexico on Galveston Island; 2-16 Thence along the mean high tide line of the Gulf of Mexico 2-17 and San Luis Pass in a westerly then northerly direction to the 2-18 intersection of such line with the centerline of FM 3005; 2-19 Thence along the centerline of FM 3005 in a westerly 2-20 direction to the intersection of such line with the Galveston 2-21 County-Brazoria County line; 2-22 Thence along the Galveston County-Brazoria County line in a 2-23 northerly direction to the intersection of such line with the 2-24 centerline of the Intracoastal Waterway; 2-25 Thence along the centerline of the Intracoastal Waterway in 2-26 an easterly direction to the intersection of such line with the 2-27 northerly projection of the centerline of 103rd Street in the City 2-28 of Galveston, Texas; and 2-29 Thence along the centerline of 103rd Street in the City of 2-30 Galveston, Texas, and the northerly and southerly projection 2-31 thereof to the PLACE OF BEGINNING. 2-32 SECTION 6. FINDINGS RELATED TO BOUNDARIES. The boundaries 2-33 and field notes of the district form a closure. If a mistake is 2-34 made in the field notes or in copying the field notes in the 2-35 legislative process, it does not affect the district's: 2-36 (1) organization, existence, or validity; 2-37 (2) right to issue any type of bond for the purposes 2-38 for which the district is created or to pay the principal of and 2-39 interest on a bond; 2-40 (3) right to impose or collect an assessment or ad 2-41 valorem taxes; or 2-42 (4) legality or operation. 2-43 SECTION 7. CONFIRMATION ELECTION. (a) The initial 2-44 directors shall meet as soon as practicable after all initial 2-45 directors have qualified for office. At the first meeting of the 2-46 board, the board shall call an election to be held within the 2-47 boundaries of the district to confirm the creation of the district. 2-48 The election must be held on the first uniform election date 2-49 provided by Section 41.001, Election Code, that falls on or after 2-50 the 45th day after the date of the order calling the election. 2-51 (b) The district may not issue any bonds or other 2-52 obligations, impose an assessment or ad valorem tax, or conduct any 2-53 other activity before a confirmation election is held. 2-54 (c) The board shall give notice of the confirmation 2-55 election. The notice must state: 2-56 (1) the nature of the election, including the 2-57 proposition that is to appear on the ballot; 2-58 (2) the date of the election; 2-59 (3) the hours during which the polls will be open; and 2-60 (4) the location of the polling places. 2-61 (d) The ballot shall be printed to permit voting "For 2-62 District" or "Against District." 2-63 (e) Immediately after the confirmation election, the 2-64 presiding judge of each election precinct shall take returns of the 2-65 result to the board. The board shall canvass the returns and 2-66 declare the results at the earliest practicable time. 2-67 (f) If a majority of the votes cast in the election favor 2-68 the creation of the district, the board shall declare that the 2-69 district is created and enter the result in its minutes. If a 3-1 majority of the votes cast in the election are against the creation 3-2 of the district, the board shall declare that the proposition to 3-3 create the district was defeated and enter the result in its 3-4 minutes. A certified copy of the minute order declaring that the 3-5 district is created or declaring that the proposition to create the 3-6 district was defeated shall be filed with the commission. 3-7 (g) The board may call more than one confirmation election. 3-8 (h) The order canvassing the results of the confirmation 3-9 election shall contain a description of the district's boundaries 3-10 and shall be filed with the executive director of the commission 3-11 and in the deed records of the county. 3-12 SECTION 8. ANNEXATION. The district may annex land as 3-13 provided by Subchapter J, Chapter 49, Water Code, subject to the 3-14 approval of the commissioners court of the county. 3-15 SECTION 9. EXCLUDING TERRITORY. (a) At any time during 3-16 which the district does not have outstanding bonds, the board on 3-17 its own motion may call a hearing on the question of the exclusion 3-18 of land from the district in the manner provided by Subchapter J, 3-19 Chapter 49, Water Code, if the board finds that the exclusions are 3-20 practicable, just, or desirable. 3-21 (b) The board shall call a hearing on the exclusion of land 3-22 or other property from the district if a landowner or property 3-23 owner in the district files with the secretary of the board a 3-24 written petition requesting the hearing before the issuance of 3-25 bonds. 3-26 SECTION 10. BOARD OF DIRECTORS. (a) The district is 3-27 governed by a board of five directors who serve staggered terms of 3-28 four years, with three directors' terms expiring June 1 of an 3-29 odd-numbered year and two directors' terms expiring June 1 of the 3-30 following odd-numbered year. 3-31 (b) The initial directors shall be divided into one group of 3-32 three directors and one group of two directors with the group of 3-33 three directors serving four-year terms and the group of two 3-34 directors serving two-year terms. The grouping of initial 3-35 directors and terms for the directors in each group shall be 3-36 determined by the commissioners court of the county. 3-37 (c) To be qualified to serve as a director, a person must be 3-38 at least 18 years old and: 3-39 (1) a resident of the district; or 3-40 (2) an owner of property in the district. 3-41 (d) The commissioners court of the county shall appoint the 3-42 members of the board of directors from persons recommended by the 3-43 board or by members of the commissioners court. A person is 3-44 appointed if the county judge and a majority of the commissioners 3-45 of the county vote to appoint that person. 3-46 (e) A director may serve successive terms. 3-47 (f) The commissioners court of the county may remove a 3-48 director for misconduct or failure to carry out the director's 3-49 duties or for any other reason on petition by a majority of the 3-50 remaining directors or a majority of the commissioners court and 3-51 after notice and hearing. 3-52 (g) A vacancy in the office of director shall be filled by 3-53 appointment by the remaining members of the board for the unexpired 3-54 term. 3-55 (h) As soon as practicable after a director is appointed, 3-56 the director shall execute a $10,000 bond payable to the district 3-57 and conditioned on the faithful performance of the director's 3-58 duties. Each director's bond must be approved by the board, and 3-59 each director shall take the oath of office for public officers 3-60 prescribed by the constitution of this state. The bond and oath 3-61 shall be filed with the district and retained in its records. 3-62 (i) After directors are appointed and have qualified by 3-63 executing a bond and taking the oath, they shall organize by 3-64 electing a president, a vice president, a secretary, and any other 3-65 officers the board considers necessary. 3-66 (j) In accordance with Section 49.060, Water Code, a 3-67 director is entitled to compensation for service on the board and 3-68 is entitled to be reimbursed for necessary expenses incurred in 3-69 carrying out the duties and responsibilities of a director. 4-1 (k) A majority of the directors constitutes a quorum, and a 4-2 concurrence of a majority of a quorum of directors is required for 4-3 any official action of the district. 4-4 SECTION 11. GENERAL POWERS OF DISTRICT. (a) Except for the 4-5 limitations set forth in this Act, the district has the rights, 4-6 powers, privileges, authority, and functions conferred by the 4-7 general law of this state applicable to conservation and 4-8 reclamation districts created under Section 59, Article XVI, Texas 4-9 Constitution, including those conferred by Chapter 54, Water Code, 4-10 with respect to the purposes for which the district is created. 4-11 (b) The district may enter into contracts and manage its 4-12 affairs and funds for any district purpose in accordance with 4-13 Chapter 54, Water Code. 4-14 SECTION 12. SPECIFIC POWERS AND DUTIES OF DISTRICT. (a) A 4-15 district has the powers necessary or convenient to carry out and 4-16 effect the purposes and provisions of this Act, including the 4-17 powers granted in this section. 4-18 (b) The district has perpetual succession. 4-19 (c) The district may: 4-20 (1) sue and be sued in courts of competent 4-21 jurisdiction and institute and prosecute suits; 4-22 (2) incur liabilities and borrow money on terms the 4-23 board determines; 4-24 (3) issue bonds; 4-25 (4) acquire by grant, purchase, gift, devise, lease, 4-26 or otherwise and hold, use, sell, lease, or dispose of real and 4-27 personal property, licenses, patents, rights, and interests 4-28 necessary, convenient, or useful for the full exercise of any of 4-29 its powers under this Act; 4-30 (5) acquire, construct, complete, develop, own, 4-31 operate, and maintain permanent improvements and provide services 4-32 inside and outside its boundaries; 4-33 (6) enter into agreements with a public or private 4-34 person for the joint use of facilities, installations, and 4-35 property; 4-36 (7) enter into contracts, leases, and agreements with 4-37 and accept grants and loans from the United States and its 4-38 departments and agencies, the state and its agencies, counties, 4-39 municipalities, and political subdivisions, public or private 4-40 corporations, and other persons and perform all acts necessary for 4-41 the full exercise of the powers vested in the district on terms and 4-42 for the term the board may determine to be advisable; 4-43 (8) acquire property under conditional sales 4-44 contracts, leases, equipment trust certificates, or any other form 4-45 of contract or trust agreement; 4-46 (9) sell, lease, convey, or otherwise dispose of any 4-47 of its rights, interests, or properties that are not needed for or, 4-48 in the case of leases, are not consistent with the efficient 4-49 operation and maintenance of the district's improvements; 4-50 (10) sell, lease, or otherwise dispose of any surplus 4-51 material or personal or real property not needed for its 4-52 requirements or for the purpose of carrying out its powers under 4-53 this Act; 4-54 (11) procure and pay premiums to insurers for 4-55 insurance of any type in amounts considered necessary or advisable 4-56 by the board; and 4-57 (12) do anything necessary, convenient, or desirable 4-58 to carry out the powers expressly granted or implied by this Act. 4-59 SECTION 13. USE AND ALTERATION OF LAND AND PUBLIC WAYS. 4-60 (a) Except as otherwise provided by this Act, the district may 4-61 construct all improvements and facilities necessary to accomplish 4-62 the purposes for which it was created on lands, whether publicly or 4-63 privately owned. 4-64 (b) Before the district may construct an improvement or 4-65 facility on lands owned by the county, the state, a municipality, 4-66 or another political subdivision, the district must obtain from the 4-67 entity approval of the plans and specifications of the improvement 4-68 or facility and any required easement, lease, or permit. 4-69 (c) The district shall bear all of the costs, expenses, and 5-1 damages suffered by owners of property or facilities if the 5-2 district, in exercising any of the powers conferred by this Act, 5-3 requires the relocation, adjustment, raising, lowering, rerouting, 5-4 changing the grade of, or altering the construction of any: 5-5 (1) streets, alleys, highways, overpasses, 5-6 underpasses, or roads; 5-7 (2) railroad tracks, bridges, or other facilities or 5-8 property; 5-9 (3) electric lines, conduits, or other facilities or 5-10 property; 5-11 (4) telephone or telegraph lines, conduits, or other 5-12 facilities or property; 5-13 (5) gas transmission or distribution pipes, pipelines, 5-14 mains, or other facilities or property; 5-15 (6) water, sanitary sewer or storm sewer pipes, 5-16 pipelines, mains, or other facilities or property; 5-17 (7) cable television lines, cables, conduits, or other 5-18 facilities or property; or 5-19 (8) other pipelines and any facilities or properties 5-20 relating to those pipelines. 5-21 SECTION 14. PROTECTION OF PUBLIC BEACHES. (a) The district 5-22 is not an agency, department, institution, subdivision, or 5-23 instrumentality of this state for purposes of Section 61.022, 5-24 Natural Resources Code. 5-25 (b) Construction by the district in a critical dune area 5-26 identified by the commissioner of the General Land Office under 5-27 Section 63.121, Natural Resources Code, that affects or that may 5-28 affect public health or public access to or use of a public beach 5-29 must be approved by an order of the commissioners court of the 5-30 county as provided by Subchapter C, Chapter 63, Natural Resources 5-31 Code. Construction by the district on land adjacent to and 5-32 landward of a public beach that affects or that may affect public 5-33 health or public access to or use of the public beach must be 5-34 approved by an order of the commissioners court of the county as 5-35 provided by Section 61.015, Natural Resources Code. After the 5-36 commissioners court by order approves the construction in a 5-37 critical dune area or on land adjacent to and landward of a public 5-38 beach, the district shall submit the order and supporting 5-39 documentation to the General Land Office and the office of the 5-40 attorney general for approval, disapproval, comment, or other 5-41 action considered appropriate by the General Land Office and the 5-42 office of the attorney general. The district may not begin the 5-43 construction without the prior approval of the General Land Office. 5-44 The district may not construct or undertake a project on a public 5-45 beach, as defined by Section 61.001, Natural Resources Code. The 5-46 district may provide district funds for a state, county, or local 5-47 government project that complies with Section 61.022, Natural 5-48 Resources Code, for the protection of the shore or another lawful 5-49 purpose. 5-50 SECTION 15. NO EMINENT DOMAIN POWER. The district may not 5-51 exercise the power of eminent domain. The county may exercise its 5-52 power of eminent domain to implement a district facility or 5-53 improvement. 5-54 SECTION 16. POWERS AND DUTIES OF BOARD. (a) The 5-55 responsibility for the management, operation, and control of the 5-56 property belonging to the district is vested in the board. 5-57 (b) The board may: 5-58 (1) employ all persons, firms, partnerships, or 5-59 corporations considered necessary by the board for the conduct of 5-60 the affairs of the district, including a general manager, 5-61 bookkeepers, auditors, engineers, attorneys, financial advisers, 5-62 peace or traffic control officers, architects, and operating or 5-63 management companies, and prescribe the duties, tenure, and 5-64 compensation of each; 5-65 (2) dismiss employees; 5-66 (3) adopt a seal for the district; 5-67 (4) invest the district's money in any investments 5-68 authorized by Subchapter A, Chapter 2256, Government Code, and 5-69 provide, by resolution, that an authorized representative manage 6-1 the district's funds and invest and reinvest the money on terms the 6-2 board considers advisable; 6-3 (5) establish a fiscal year for the district; 6-4 (6) establish a complete system of accounts for the 6-5 district; and 6-6 (7) designate one or more banks to serve as the 6-7 depository bank or banks. 6-8 (c) Each year the board shall have prepared an audit of the 6-9 district's affairs by an independent certified public accountant or 6-10 a firm of independent certified public accountants. The audit 6-11 prepared under this subsection must be open to public inspection. 6-12 (d) Money of the district shall be deposited in the 6-13 depository bank or banks unless otherwise required by orders or 6-14 resolutions authorizing the issuance of the district's bonds. To 6-15 the extent that money in the depository bank or banks is not 6-16 insured by the Federal Deposit Insurance Corporation, the money 6-17 must be secured in the manner provided by law for the security of 6-18 funds of counties. The board by resolution may authorize a 6-19 designated representative to supervise the substitution of 6-20 securities pledged to secure the district's money. 6-21 (e) The board may adopt and enforce reasonable rules 6-22 governing the administration of the district and its programs and 6-23 projects. 6-24 (f) The name of the district may be established or changed 6-25 by resolution of the board. 6-26 SECTION 17. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT. 6-27 (a) The board may appoint a hearings examiner to conduct any 6-28 hearing called by the board, including a hearing required by 6-29 Chapter 395, Local Government Code. The hearings examiner may be 6-30 an employee of the district or a member of the board. 6-31 (b) The hearing shall be conducted in accordance with 6-32 Chapter 2001, Government Code. 6-33 SECTION 18. GENERAL POWERS RELATING TO ASSESSMENTS; 6-34 IMPROVEMENT PROJECTS. (a) The board may impose and collect an 6-35 assessment for any purpose authorized by and in the manner provided 6-36 by this Act if the commissioners court of the county approves the 6-37 assessment. 6-38 (b) The board may undertake an improvement project or 6-39 service that confers a special benefit on all or a definable part 6-40 of the district. The board may impose and collect a special 6-41 assessment on property in that area, based on the benefit conferred 6-42 by the improvement project or service, to pay all or part of the 6-43 cost of the project or service. If the board determines that there 6-44 is a benefit to the district, the district may provide an 6-45 improvement or service to an area outside the boundaries of the 6-46 district. 6-47 (c) The district may not undertake an improvement project or 6-48 provide a service unless the district uses a method approved by the 6-49 General Land Office, the office of the attorney general, or any 6-50 other governmental entity with the authority to regulate the 6-51 improvement project or service. 6-52 SECTION 19. PROPOSED ASSESSMENTS. An improvement project or 6-53 service may be financed under this Act after notice of a hearing is 6-54 given as required by Section 21 of this Act and the board holds a 6-55 public hearing on the advisability of the improvement project or 6-56 service and the proposed assessment. 6-57 SECTION 20. PETITION REQUIRED. The board may finance an 6-58 improvement project or service if a written petition is filed with 6-59 the board requesting the improvement project or service. If more 6-60 than 25 persons own real property in the district, according to the 6-61 most recent certified property tax rolls, the petition must be 6-62 signed by at least 25 persons who own real property in the 6-63 district. 6-64 SECTION 21. NOTICE OF HEARING. (a) Notice of the hearing 6-65 shall be given in a newspaper with general circulation in the 6-66 county. The publication must be made not later than the 30th day 6-67 before the date of the hearing. 6-68 (b) The notice must include: 6-69 (1) the time and place of the hearing; 7-1 (2) the general nature of the proposed improvement 7-2 project or service; 7-3 (3) the estimated cost of the improvement project or 7-4 service, including interest during construction and associated 7-5 financing costs; and 7-6 (4) the proposed method of assessment. 7-7 (c) Written notice containing the information required by 7-8 this section shall be mailed by certified mail, return receipt 7-9 requested, not later than the 30th day before the date of the 7-10 hearing to each property owner in the district who will be subject 7-11 to assessment at the current address of the property to be assessed 7-12 as reflected on the tax rolls or the address provided by the 7-13 property owner for tax purposes. 7-14 SECTION 22. CONCLUSION OF HEARING; FINDINGS. (a) A hearing 7-15 on the improvement project or service, whether conducted by the 7-16 board or a hearings examiner, may be adjourned from time to time. 7-17 (b) If the board conducts the hearing, at the conclusion of 7-18 the hearing the board shall make findings by resolution or order 7-19 relating to the advisability of the improvement project or service, 7-20 the estimated cost, the area benefited, the method of assessment, 7-21 and the method and time for payment of the assessment. 7-22 (c) If a hearings examiner is appointed to conduct the 7-23 hearing, after conclusion of the hearing the hearings examiner 7-24 shall file with the board a report stating the examiner's findings 7-25 and conclusions. Based on the findings and conclusions of the 7-26 hearings examiner, the board shall make findings by resolution or 7-27 order relating to the advisability of the improvement project or 7-28 service, the estimated cost, the area benefited, the method of 7-29 assessment, and the method and time for payment of the assessment. 7-30 SECTION 23. AREA TO BE ASSESSED. (a) The area of the 7-31 district to be assessed according to the findings of the board may 7-32 be the entire district or any part of the district and may be less 7-33 than the area proposed in the notice of the hearing. 7-34 (b) Except as provided by Subsection (c) of this section, 7-35 the area to be assessed may not include property that is not within 7-36 the district boundaries at the time of the hearing unless there is 7-37 an additional hearing preceded by the required notice. 7-38 (c) The owner of improvements constructed or land annexed to 7-39 the district after the district has imposed an assessment may waive 7-40 the right to notice and an assessment hearing and may agree to the 7-41 imposition and payment of an assessment at an agreed rate for 7-42 improvements constructed or land annexed to the district. 7-43 SECTION 24. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a) At a 7-44 hearing on proposed assessments, at any adjournment of the hearing 7-45 or after consideration of the hearings examiner's report, the board 7-46 shall hear and rule on all objections to each proposed assessment. 7-47 (b) The board may amend a proposed assessment for any 7-48 parcel. 7-49 (c) After all objections have been heard and action has been 7-50 taken with regard to those objections, the board, by order or 7-51 resolution, shall impose the assessment as a special assessment on 7-52 the property, shall specify the method of payment of the 7-53 assessment, and may provide that the assessment be paid in periodic 7-54 installments, including interest. 7-55 (d) A periodic installment of the payment of an assessment 7-56 shall be in an amount sufficient to meet annual costs for 7-57 improvements and services as provided by this Act and continue for 7-58 the number of years required to retire indebtedness or pay for the 7-59 services to be rendered. The board may provide interest charges or 7-60 penalties for failure to make timely payment and may impose an 7-61 amount to cover delinquencies and expenses of collection. 7-62 (e) If an assessment is imposed for more than one 7-63 improvement project or service, the board may provide that an 7-64 assessment collected for one improvement project or service may be 7-65 borrowed to be used for another improvement project or service. 7-66 (f) The board shall establish a procedure for the 7-67 distribution or use of any assessment in excess of those necessary 7-68 to finance the improvement project or service for which the 7-69 assessment was collected. 8-1 SECTION 25. APPORTIONMENT OF COST. The portion of the cost 8-2 of an improvement project or service to be assessed against the 8-3 property in the district shall be apportioned by the board based on 8-4 the special benefits accruing to the property because of the 8-5 improvement project or service. The cost may be assessed: 8-6 (1) equally by front foot or square foot of land area 8-7 against all property in the district; 8-8 (2) according to the value of the property as 8-9 determined by the board, with or without regard to structures or 8-10 other improvements on the property; or 8-11 (3) using any other reasonable assessment plan that 8-12 results in imposing fair and equitable shares of the cost on 8-13 property similarly benefited. 8-14 SECTION 26. ASSESSMENT ROLL. The board shall impose the 8-15 assessment against each parcel of land against which an assessment 8-16 may be imposed in the district after the total cost of an 8-17 improvement project or service is determined. With regard to an 8-18 assessment for services, the board may impose an additional annual 8-19 assessment that may be lower but not higher than the initial 8-20 assessment. The board shall have an assessment roll prepared 8-21 showing the assessment against each property and the board's basis 8-22 for the assessment. The assessment roll shall be filed with the 8-23 secretary of the board or other officer who performs the function 8-24 of secretary and shall be open for public inspection. 8-25 SECTION 27. INTEREST ON ASSESSMENTS; LIEN. (a) An 8-26 assessment bears interest at a rate specified by the board that may 8-27 not exceed the interest rate permitted by Chapter 1204, Government 8-28 Code. 8-29 (b) Interest on an assessment between the effective date of 8-30 the order or resolution imposing the assessment and the date the 8-31 first installment and any related penalty is payable shall be added 8-32 to the first installment. The interest or penalties on all unpaid 8-33 installments shall be added to each subsequent installment until 8-34 paid. 8-35 (c) Assessments, reassessments, or assessments resulting 8-36 from an addition to or correction of the assessment roll by the 8-37 district, penalties and interest on an assessment or reassessment, 8-38 expenses of collection, and reasonable attorney's fees incurred by 8-39 the district are: 8-40 (1) a first and prior lien against the property 8-41 assessed; 8-42 (2) superior to any other lien or claim other than a 8-43 lien or claim for county, school district, or municipal ad valorem 8-44 taxes; and 8-45 (3) the personal liability of and charge against the 8-46 owners of the property even if the owners are not named in the 8-47 assessment proceedings. 8-48 (d) The lien is effective from the date of the resolution of 8-49 the board imposing the assessment until the assessment is paid. 8-50 The board may enforce the lien in the same manner that the board 8-51 may enforce an ad valorem tax lien against real property. 8-52 (e) The owner of any property assessed may pay at any time 8-53 the entire assessment against any lot or parcel with accrued 8-54 interest to the date of the payment. 8-55 SECTION 28. SUPPLEMENTAL ASSESSMENTS. After notice and 8-56 hearing in the manner required for original assessments, the board 8-57 may make supplemental assessments to correct omissions or mistakes 8-58 in the assessment: 8-59 (1) relating to the total cost of the improvement 8-60 project or service; or 8-61 (2) covering delinquencies or costs of collection. 8-62 SECTION 29. APPEAL. (a) After determination of an 8-63 assessment, a property owner against whom an assessment is made may 8-64 appeal the assessment to the board. The property owner must file a 8-65 notice of appeal with the board not later than the 30th day after 8-66 the date that the assessment is adopted. The board shall set a 8-67 date to hear the appeal. 8-68 (b) The property owner may appeal the board's decision on 8-69 the assessment to a district court in the county in the manner 9-1 provided for the appeal of contested cases in Chapter 2001, 9-2 Government Code. The property owner must file notice of the appeal 9-3 with the district court not later than the 30th day after the date 9-4 of the board's final decision with respect to the assessment. 9-5 Review by the district court is by trial de novo. 9-6 (c) Failure to file a notice of appeal in the time required 9-7 by this section results in a loss of the right to appeal the 9-8 assessment. 9-9 (d) If an assessment against a parcel of land is set aside 9-10 by the district court, found excessive by the board, or determined 9-11 to be invalid by the board, the board may make a reassessment or 9-12 new assessment of the parcel. 9-13 SECTION 30. APPROVAL OF COMMISSIONERS COURT. An ad valorem 9-14 tax, an assessment, or a combination of an ad valorem tax and an 9-15 assessment, including an apportionment of an assessment, must be 9-16 approved by the commissioners court of the county. 9-17 SECTION 31. EXEMPTIONS. (a) The district may not impose an 9-18 assessment on the property, equipment, or facilities of a public 9-19 utility. For purposes of this section, "utility" means a person 9-20 that provides to the public gas, electricity, telephone, sewerage, 9-21 or water service. 9-22 (b) Payment of assessments by municipalities, counties, 9-23 other political subdivisions, and organizations exempt from federal 9-24 income tax under Section 501(a), Internal Revenue Code of 1986, by 9-25 being listed under Section 501(c)(3), Internal Revenue Code of 9-26 1986, shall be established by contract. Municipalities, counties, 9-27 and other political subdivisions may contract with the district 9-28 under terms and conditions those entities consider advisable to 9-29 provide for the payment of assessments. 9-30 SECTION 32. TAX FOR BONDS. At the time bonds payable wholly 9-31 or partly from taxes are issued, the board shall impose a 9-32 continuing direct annual ad valorem tax, for each year that all or 9-33 part of the bonds are outstanding, on all taxable property within 9-34 the district in a sufficient amount to pay the interest on the 9-35 bonds as it becomes due, to create a sinking fund for the payment 9-36 of the principal of the bonds when due or the redemption price at 9-37 any earlier required redemption rate, and to pay the expenses of 9-38 assessing and collecting the taxes. 9-39 SECTION 33. ESTABLISHMENT OF TAX RATE IN EACH YEAR. (a) In 9-40 determining the actual rate to be imposed in each year, the board 9-41 shall consider: 9-42 (1) the amount that is necessary for maintenance and 9-43 operation purposes, if an operation and maintenance tax has been 9-44 authorized as provided by Section 34 of this Act; 9-45 (2) the amount that is necessary for the payment of 9-46 principal, interest, and the redemption price of each series of 9-47 bonds payable wholly or partly from taxes; 9-48 (3) the amount that is necessary for the purpose of 9-49 paying all other contractual obligations of the district payable 9-50 wholly or partly from taxes; or 9-51 (4) the percentage of anticipated tax collections and 9-52 the cost of collecting the taxes. 9-53 (b) In determining the amount of taxes that are necessary 9-54 each year, the board may consider whether proceeds from the sale of 9-55 bonds have been placed in escrow to pay interest during 9-56 construction and whether the board reasonably expects to have 9-57 revenue or receipts available from other sources that are legally 9-58 available to pay the principal of or interest on or redemption 9-59 price of the bonds. The board shall impose a tax in the first full 9-60 year after issuance of its first series of bonds. 9-61 SECTION 34. OPERATION AND MAINTENANCE TAX. (a) The 9-62 district may impose and collect a tax for operation and maintenance 9-63 purposes, including funds for planning, constructing, acquiring, 9-64 maintaining, repairing, and operating all necessary land, plants, 9-65 works, facilities, improvements, appliances, and equipment of the 9-66 district and for paying costs of proper services, engineering and 9-67 legal fees, and organization and administrative expenses. 9-68 (b) An operation and maintenance tax may not be imposed by 9-69 the district until it is approved by a majority of the qualified 10-1 voters within the district voting at an election held for that 10-2 purpose. After the district's voters have authorized an operation 10-3 and maintenance tax, the board may impose the tax and have it 10-4 assessed and collected as other district taxes. 10-5 (c) An operation and maintenance tax election may be held at 10-6 the same time and in conjunction with any other district election. 10-7 The election may be called by a separate election order or as part 10-8 of any other election order. 10-9 (d) The proposition in an operation and maintenance tax 10-10 election may be for a specific maximum rate or for an unlimited 10-11 rate. 10-12 (e) If the district has any surplus operation and 10-13 maintenance tax funds that are not needed for the purposes for 10-14 which they were collected, the funds may be used for any lawful 10-15 purpose. 10-16 SECTION 35. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND 10-17 SERVICES. (a) The cost of any improvement project or service, 10-18 including interest during construction and costs of issuance of 10-19 bonds, may be paid from general or available funds, ad valorem 10-20 taxes, assessments, or the proceeds of bonds payable from revenues, 10-21 ad valorem assessments, grants, gifts, contracts, or leases or any 10-22 combination of those funds. 10-23 (b) During the progress of an improvement project or 10-24 service, the board may issue temporary notes to pay the costs of 10-25 the improvement project or service and issue bonds on completion. 10-26 (c) The costs of more than one improvement project or 10-27 service may be paid from a single issue and sale of bonds without 10-28 other consolidation proceedings before the bond issue. 10-29 SECTION 36. BONDS. (a) For the payment of all or part of 10-30 the costs of an improvement project or service, the board may issue 10-31 bonds in one or more series payable from and secured by 10-32 assessments, ad valorem taxes, revenues, grants, gifts, contracts, 10-33 or leases, or any combination of those funds. Bonds may be liens 10-34 on all or part of the revenue derived from improvements authorized 10-35 under this Act, including installment payments of special 10-36 assessments, ad valorem taxes, or any other source pledged to their 10-37 payment. 10-38 (b) The district may issue bonds, and the bonds shall be 10-39 approved in the manner prescribed by Subchapter J, Chapter 375, 10-40 Local Government Code. 10-41 (c) The board may issue and approve bonds without the 10-42 consent of the county, any municipality, or the commission. 10-43 SECTION 37. ELECTION TO APPROVE ISSUANCE OF BONDS. 10-44 (a) Bonds secured by assessments or ad valorem taxes, or a 10-45 combination of assessments and ad valorem taxes, may not be issued 10-46 unless the bonds are approved by a majority of the qualified voters 10-47 in the district voting at an election held for that purpose. 10-48 (b) Bonds that are not secured by assessments or ad valorem 10-49 taxes, or a combination of assessments and ad valorem taxes, may be 10-50 issued without an election. 10-51 (c) An election required by this section shall be conducted 10-52 in accordance with Chapter 375, Local Government Code. 10-53 SECTION 38. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS 10-54 CONTRACTS. (a) Contracts of the district are subject to the 10-55 competitive bidding requirements of Subchapter I, Chapter 49, Water 10-56 Code. 10-57 (b) This Act states the required procedures necessary for 10-58 the district to award contracts and supersedes any law or other 10-59 requirement with respect to the award of contracts. 10-60 SECTION 39. DISSOLUTION. (a) Except as provided by 10-61 Subsection (c) of this section, the board by majority vote may 10-62 dissolve the district at any time. 10-63 (b) Except as provided by Subsection (c) of this section, 10-64 the commissioners court of the county, by a vote of not less than 10-65 two-thirds, may adopt a resolution dissolving the district. 10-66 (c) The district may not be dissolved if the district has 10-67 any outstanding bonded indebtedness until that bonded indebtedness 10-68 is repaid or decreased in accordance with the order or resolution 10-69 authorizing the issuance of the bonds. 11-1 SECTION 40. CONTRACTS WITH DISTRICT. (a) A municipality, 11-2 county, or other political subdivision of the state, without 11-3 further authorization, may contract with the district to implement 11-4 a project of the district or aid and assist the district in 11-5 providing the services authorized under this Act. A contract under 11-6 this section may: 11-7 (1) be for a period on which the parties agree; 11-8 (2) include terms on which the parties agree; 11-9 (3) be payable from assessments or any other sources 11-10 of revenue that may be available for that purpose; or 11-11 (4) provide that assessments or other revenue 11-12 collected at a district project or from a person using or 11-13 purchasing a commodity or service at a district project may be paid 11-14 or rebated to the district under the terms of the contract. 11-15 (b) The district may enter into a contract, lease, or 11-16 agreement with or make or accept grants and loans to or from: 11-17 (1) the United States, including federal departments 11-18 and agencies; 11-19 (2) the state or a state agency; 11-20 (3) a county, municipality, or other political 11-21 subdivision of the state; 11-22 (4) a public or private corporation; or 11-23 (5) any other person. 11-24 (c) The district may perform all acts necessary for the full 11-25 exercise of the powers vested in the district on terms and for the 11-26 term the board may determine to be advisable. 11-27 SECTION 41. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 11-28 The legislature finds that: 11-29 (1) the proper and legal notice of the intention to 11-30 introduce this Act, setting forth the general substance of this 11-31 Act, has been published as provided by law, and the notice and a 11-32 copy of this Act have been furnished to all persons, agencies, 11-33 officials, and entities to which they are required to be furnished 11-34 by the constitution and laws of this state, including the governor, 11-35 who has submitted the notice and Act to the commission; 11-36 (2) the commission has filed its recommendations 11-37 relating to this Act with the governor, lieutenant governor, and 11-38 speaker of the house of representatives within the required time; 11-39 (3) the general law relating to consent by political 11-40 subdivisions to the creation of districts with conservation, 11-41 reclamation, and road powers and the inclusion of land in those 11-42 districts has been complied with; and 11-43 (4) all requirements of the constitution and laws of 11-44 this state and the rules and procedures of the legislature with 11-45 respect to the notice, introduction, and passage of this Act have 11-46 been fulfilled and accomplished. 11-47 SECTION 42. INITIAL DIRECTORS. Notwithstanding Section 10 11-48 of this Act, the initial board of directors of the West Galveston 11-49 Island Conservation District consists of: 11-50 (1) ____________________; 11-51 (2) ____________________; 11-52 (3) ____________________; 11-53 (4) ____________________; and 11-54 (5) ____________________. 11-55 SECTION 43. EFFECTIVE DATE. This Act takes effect 11-56 immediately if it receives a vote of two-thirds of all the members 11-57 elected to each house, as provided by Section 39, Article III, 11-58 Texas Constitution. If this Act does not receive the vote 11-59 necessary for immediate effect, this Act takes effect September 1, 11-60 2001. 11-61 * * * * *