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                                 * * * * *