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WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 61. ARTICLE III, SECTION 52, NAVIGATION DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.001. DEFINITIONS. In this chapter:

(1) "District" means a navigation district created under Article

III, Section 52, of the Texas Constitution.

(2) "Commission" means the navigation and canal commission of a

district.

(3) "Board" means the navigation board.

(4) "Commissioners court" means the commissioners court of the

county in which the district is located or the commissioners

court of the county of jurisdiction.

(5) "Commissioner" means a member of the navigation and canal

commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 61.021. CREATION. A navigation district may be created as

provided in this chapter to operate under Article III, Section 52

of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.022. AREA INCLUDED IN DISTRICT. A district may include

all or part of a village, town, or municipal corporation, but may

not include more than all or parts of two counties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.023. DISTRICT MAY INCLUDE ROAD DISTRICT. On petition

signed by a majority of the property taxpayers who reside in the

special road district, a district which includes all or parts of

two counties may include any special road district which has

voted bonds to construct public roads. If the entire county which

includes the road district is included in the district, this

section does not apply.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.024. PETITION TO CREATE SINGLE-COUNTY DISTRICT. (a) To

create a district located wholly in one county, a petition,

signed by 25 of the resident property taxpayers, or if there are

fewer than 75 resident property taxpayers in the proposed

district, then by one-third of them, shall be presented to the

commissioners court of the county.

(b) The petition shall include:

(1) a request for the establishment of a navigation district;

(2) a description of the boundaries of the proposed district,

accompanied by a map;

(3) a statement of the general nature of the improvements

proposed;

(4) an estimate of the probable cost;

(5) a request for the issuance of bonds and the levy of a tax to

pay for the bonds; and

(6) the designation of a name for the district which shall

include the name of the county.

(c) An affidavit stating the qualifications of the petitioners

shall accompany the petition.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.025. PETITION TO CREATE DISTRICT IN TWO COUNTIES. (a)

If the proposed district is located in two counties, the petition

shall be presented to the commissioners court of the county which

includes the greater part of the district, and this county shall

be the county of jurisdiction with relation to all matters

concerning the district.

(b) The petition shall be signed by 25 resident property

taxpayers in each county in the district or if there are fewer

than 75 resident property taxpayers in either of the counties,

then by one-third of the resident property taxpayers in that

county.

(c) The name of the district shall include the name of the

county which has jurisdiction.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.026. DEPOSIT. (a) The petition shall be accompanied by

$500 in cash, which shall be deposited with the clerk of the

commissioners court.

(b) The money shall be held by the clerk until after the result

of the election for the creation of the district has been

declared and entered of record by the commissioners court.

(c) If the result of the election is in favor of the

establishment of the district, the deposit shall be returned to

the petitioners or their agent or attorney.

(d) If the result of the election is against the establishment

of the district, the clerk shall pay out of the $500, with

vouchers signed by the county judge, all costs and expenses

connected with the proposed district, including the election. Any

balance shall be returned to the petitioners or their agents or

attorney.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.027. HEARING. (a) On presentation of the petition, the

commissioners court shall order a hearing to be held at a regular

or special term of the commissioners court.

(b) The hearing shall be held not less than 30 days nor more

than 60 days from the date the petition is presented.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.028. NOTICE OF HEARING. (a) The commissioners court

shall order the clerk to give notice of the date and place of the

hearing by posting a copy of the petition and the order of the

commissioners court at the courthouse door and at four other

public places within the boundaries of the proposed district.

(b) The notices shall be posted not less than 20 days

immediately preceding the time set for the hearing.

(c) If the district is composed of more than one county, the

notices shall be posted in each county.

(d) The clerk is entitled to receive $1 for each notice he posts

and five cents a mile for each mile traveled to post the notices.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.029. HEARING BY BOARD. (a) If the proposed district

includes all or part of a city acting under special charter

granted by the legislature, the hearing shall be held at the

regular meeting place of the commissioners court before a board.

(b) The board shall include the county judge and the members of

the commissioners court and the mayor and the aldermen or

commissioners of the city or cities.

(c) The board shall pass on the petition with each individual

member having one vote.

(d) A majority in number of the persons composing the board

shall constitute a quorum, and the action of the quorum shall

control.

(e) The hearing shall be held and notice shall be given as

provided in Sections 61.027-61.028 of this code.

(f) The clerk shall record the proceedings of the board in the

book kept for that purpose, and this record shall be available

for public inspection.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.030. CONDUCT OF HEARING. (a) The commissioners court

or the board has exclusive jurisdiction to hear and determine all

contests and objections to the creation of the proposed district,

all matters relating to the creation of the proposed district,

and all subsequent proceedings of the proposed district after it

is organized.

(b) The commissioners court or the board may adjourn the hearing

from day to day, and all judgments or decisions rendered by it

shall be final unless otherwise provided in this chapter.

(c) Any person who might be affected by creation of the district

may appear at the hearing and support or oppose creation of the

proposed district and may offer testimony relating to:

(1) the necessity and feasibility of the proposed district;

(2) the benefits to accrue from formation of the proposed

district;

(3) the boundaries of the proposed district; or

(4) any other matter concerning the proposed district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.031. FINDINGS. (a) If it appears at the hearing that

the proposed improvements are feasible and practicable and would

be a public benefit and utility, the commissioners court or the

board shall make these findings and approve the boundaries stated

in the petition or make changes in the boundaries.

(b) Changes may not be made in the proposed boundaries until

notice is given and a hearing held in the manner provided in

Sections 61.027-61.030 of this code.

(c) If the commissioners court or board is unable to make the

findings under Subsection (a) of this section, it shall dismiss

the petition at the cost of the petitioners. Dismissal of the

petition shall not prevent presentation of other petitions at a

later date.

(d) The commissioners court or the board shall enter all

findings in its records.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.032. PROVIDING FUNDS FOR PROPOSED IMPROVEMENTS. (a) If

the commissioners court or the board approves the boundaries in

the petition or as changed and decides to grant the petition, it

shall determine the amount of money necessary for the

improvements and all expenses connected with the improvements and

whether to issue bonds for the full amount or, in the first

instance, for a less amount.

(b) The commissioners court or the board shall specify the

amount, term, and rate of interest of bonds to be issued.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.033. ELECTION ORDER. (a) If the commissioners court or

the board finds in favor of the establishment of the district and

the issuance of bonds and levy of a tax, the commissioners court

shall order an election to vote on the proposition.

(b) The election order shall specify the amount of the bonds to

be issued, their maturity dates, and the rate of interest.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.034. ELECTIONS. (a) When an election is held under

this chapter, notice shall be posted for 30 days before the

election in the manner provided for posting notice. The notice

shall include:

(1) the time and place of the election;

(2) the proposition;

(3) the purpose of the election; and

(4) a copy of the election order.

(b) Unless otherwise provided, a two-thirds vote is necessary to

carry a proposition submitted at an election.

(c) The commissioners court shall create and define, by order,

the voting precincts in the district and shall name convenient

polling places in the precincts. It shall appoint necessary

election officials and shall hold elections at the earliest legal

time.

(d) After canvassing the returns of an election, if the

commissioners court finds that the proposition has carried, it

shall declare the result and enter it in the minutes as provided

in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.035. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the proposition:

"The creation of a navigation district and the issuance of bonds

and the levy of a tax to pay for the bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.036. DECLARATION OF RESULT. If the proposition carries

at the election, the commissioners court shall enter the

following declaration in its minutes:

"Commissioners Court of __________ County, Texas, __________ term

A.D. ______: In the matter of the petition of __________ and

__________ others requesting the establishment of a navigation

district and the issuance of bonds and the levy of taxes in the

petition described and designated by the name of __________

Navigation District. Be it known that at an election called for

that purpose in the district, held on the ______ day of

__________ A.D. ______, a two-thirds majority of the electors

voting on the proposition voted in favor of the creation of the

navigation district, and the issuance of bonds and the levy of a

tax. Now, therefore, it is considered and ordered by the court

that the navigation district be and the same is hereby

established by the name of __________ Navigation District, and

that the bonds of the district in the amount of $______ be

issued, and a tax of ______ cents on the $100 valuation or so

much thereof as may be necessary to be levied on all property

inside the navigation district sufficient in amount to pay the

interest on the bonds and provide a sinking fund to redeem them

at maturity, and that if the tax becomes insufficient for these

purposes, it shall be increased until it is sufficient. The metes

and bounds of the district shall be as follows: (Description of

metes and bounds.)"

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 61.071. APPOINTMENT OF COMMISSIONERS. After a district is

created, the commissioners court or the board, by majority vote,

shall biennially appoint three commissioners to the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.072. ORGANIZATION: QUORUM. The commission shall

organize by electing one of their number chairman and one

secretary. Two of the commissioners shall constitute a quorum,

and a concurrence of two shall be sufficient in all matters

relating to the business of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.073. QUALIFICATIONS. To be qualified for appointment as

a commissioner, a person must be a resident of the district, a

freehold property taxpayer, and a qualified elector of the

county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.074. TERM OF OFFICE, REMOVAL, AND SUCCESSION. (a) Each

commissioner shall hold office for four years and until his

successor has qualified, unless sooner removed by a majority vote

of the commissioners court or the board for malfeasance or

nonfeasance in office.

(b) All vacancies in the office of commissioner shall be filled

for the unexpired term in the manner provided for the original

appointment to the office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1983, 68th Leg., p. 5217, ch. 951, Sec. 13, eff.

Jan. 1, 1984.

Sec. 61.075. COMMISSIONER'S OATH. Each commissioner shall

subscribe an oath before the county judge of the county of

jurisdiction to discharge faithfully the duties of his office

without favor or partiality, and to render a true account of his

activities to the commissioners court or the board which

appointed him. The oath shall be filed by the clerk and preserved

as a part of the records of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.076. COMMISSIONER'S BOND. Each commissioner shall

execute a good bond for $1,000, payable to the county judge for

the use and benefit of the district and conditioned on the

faithful performance of his duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.077. COMMISSIONERS' COMPENSATION. The commissioners are

entitled to receive for their services compensation fixed by the

commissioners court and entered in the record.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.078. DISTRICT TREASURER. The county treasurer of the

county of jurisdiction shall be treasurer of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.079. DISTRICT TREASURER'S BOND. (a) Before receiving

the proceeds of any district bonds and before receiving any

district funds from any source, the district treasurer shall

execute a good and sufficient bond payable to the commission for

the benefit of the district. The bond shall be in an amount fixed

and approved by the commission.

(b) The bond shall be conditioned on the district treasurer's

faithfully executing the duties of his office, paying over all

money that comes into his hands as the treasurer, and rendering a

just account to the commissioners court or the commission when

required to do so.

(c) The bond required by this section shall remain in full force

and effect as long as any funds belonging to the district are in

the possession or under the control of the treasurer.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.080. DISTRICT TREASURER'S COMPENSATION. The district

treasurer shall be entitled to receive for his services an amount

fixed by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.081. DUTIES IMPOSED WITHOUT COMPENSATION. The duties

and powers conferred on county, city and other officers under

this chapter are a part of the legal duty of the officers which

they shall perform without additional compensation, unless

otherwise provided in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.082. COURT ACTIONS. (a) The district, by and through

its commission, may sue and be sued in any court in this state in

the name of the district.

(b) The courts of this state shall take judicial notice of the

establishment of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 61.111. PURPOSES OF DISTRICT. A district may:

(1) improve rivers, bays, creeks, streams, and canals inside or

adjacent to the district;

(2) construct and maintain canals and waterways to permit or aid

navigation; and

(3) issue bonds to pay for these improvements.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.112. EMPLOYEES AND COUNSEL. (a) The commission may

employ assistant engineers and other employees which are

necessary and may determine their compensation.

(b) The commission may retain counsel to represent the district

in the preparation of contracts or in the conduct of any

proceedings in or out of court and to be the legal advisor of the

commission on terms and for fees agreed on by the parties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.113. AUTHORITY TO GO ON LAND. The commissioners and

engineers, together with all necessary teams, help, tools and

instruments, may go on any land located inside the district for

the purpose of examining the land and making plans, surveys,

maps, and profiles, without subjecting themselves to the laws of

trespass.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.114. PENALTY FOR PROHIBITING ENTRY TO LAND. Any person

who wilfully prevents or prohibits any officer listed in Section

61.113 of this code from entering land for the purposes stated in

that section on conviction shall be punished by a fine of not

more than $25 a day for each day he prevents or prohibits the

officer from entering the land.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.115. ACQUISITION OF PROPERTY. The commission may

acquire by gift, grant, purchase, or condemnation any necessary

rights-of-way and property for necessary improvements

contemplated by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.116. LEASE OF STATE OWNED LANDS AND FLATS. (a) Any

district organized under this chapter or any special law or any

general law under which navigation districts may be created may

apply for a lease from the State of Texas of the surface estate

of any lands and flats belonging to the state which are covered

or partly covered by the water of any of the bays or other arms

of the sea; however, any navigation district created after the

effective date of this Act may not lease the surface estate of

any such lands or flats which are located within 10 miles of the

boundary of any navigation district in existence on the effective

date of this Act, without first receiving the written approval of

the district now in existence. The words "navigation district,"

"district," or "districts" as used in Sections 61.116, 61.117,

and 60.038 of the Texas Water Code shall apply to any

incorporated city in this state which owns and operates wharves,

docks, and other marine port facilities.

(b) The state, through the School Land Board, may lease these

state owned lands or flats to eligible navigation districts only

for purposes reasonably related to the promotion of navigation.

The term "navigation" as used herein refers to marine commerce

and immediately related activities, including but not limited to

port development; channel construction and maintenance;

commercial and sport fishing; recreational boating; industrial

site locations; transportation, shipping, and storage facilities;

pollution abatement facilities; and all other activities

necessary or appropriate to the promotion of marine commerce; but

specifically does not refer to residential development.

(c) In making application for a lease of state owned lands or

flats, the district shall include the following information:

(1) a description of the lands or flats sought to be leased;

(2) a plan showing how it proposes to utilize the land and a

timetable indicating approximately when such utilization will

take place;

(3) a draft environmental impact statement assessing the effect

of the proposed use on the environment, which statement shall

generally conform to the requirements of the National

Environmental Policy Act, until such time as the legislature

shall impose different requirements; however, a draft

environmental impact statement shall not be required if the

proposed use requires no dredging, filling, or bulkheading. If

the proposed use does require dredging, filling, or bulkheading,

but the lease shall be processed as provided in Subsections (d),

(e), and (f) of this section without the filing of a draft

environmental impact statement if the applicant so requests in

writing; but in such a case, the School Land Board shall include

in the lease provisions requiring (i) that the draft

environmental impact statement required by federal law be filed

with the School Land Board before the district makes any use of

such lands or flats which requires dredging, filling, or

bulkheading; (ii) that approval of such use be obtained from the

School Land Board after copies of the summary of the draft

environmental impact statement and a description of the proposed

use are circulated for comment and a hearing held as provided in

Subsections (d) and (e) of this section and the School Land Board

shall be authorized to give its approval to make such amendments

to the lease as may then be deemed necessary by it as a result of

information developed in the draft environmental impact

statement; and (iii) that the lease shall cease to be effective

at a time specifically stated in the lease unless prior to that

time accord concerning environmental issues has been reached

between the district and the School Land Board;

(4) proof satisfactory to the board establishing the public

convenience and necessity for acquisition of lands sought to be

leased.

(d) Upon receipt of an application and accompanying information,

the School Land Board shall submit copies thereof to the member

agencies of the Interagency Council on Natural Resources and the

Environment and all other appropriate state agencies for review

and comment. In addition, the board shall submit for review and

comment the proposed terms and conditions of the lease. The board

shall allow 30 days for such review and comment, and may extend

the review period for an additional 30 days upon written request

by the executive director of any state agency.

(e) Following the expiration of the period provided for review

and comment, or following the expiration of the 30 day extension

of such period, if applicable, the School Land Board shall cause

a hearing to be held in the county in which the land proposed to

be leased is located. Notice of the hearing shall be given by

publication for at least three days, not less than two weeks nor

more than four weeks prior to the hearing, in the daily paper

having the greatest circulation in the county. Members of the

board or their designated representatives shall conduct the

hearing, at which any party may offer testimony in support of or

in opposition to the application, and the board shall consider

the record of the hearing in making a decision on the

application.

(f) After submission of all evidence, the School Land Board

shall authorize the issuance or denial of the proposed lease and

shall determine the reasonable cost to the district, term of

years, special limitations, if any, and other conditions

necessary to best serve the interest of the general public. In

establishing the consideration to be paid to the state for the

lease, due weight shall be given to the depth of the water over

the submerged land, its proximity to development activities, and

its proposed use. Final action shall be taken by the board no

more than 60 days following the public hearing.

(g) The funds derived from the lease shall be paid to the

General Land Office for transfer to the proper funds of the

state.

(h) Districts may sublease lands leased from the state under the

provisions of this section to third parties for activities

reasonably related to navigation, but such sublease shall be

subject to the approval of the School Land Board according to the

procedures, requirements, and criteria set forth in Subsections

(c) and (d) of Section 61.116 of this code; provided, however,

that no approval by the School Land Board shall be required if

the sublease is for a purpose contemplated by the district and

approved by the board in the district's original lease. It is

further provided that no environmental impact statement shall

ever be necessary for any sublease which requires no dredging,

filling, or bulkheading, and which would not have a substantial

impact upon the environment, or which requires only insubstantial

dredging, filling, or bulkheading, as determined by the board;

nor shall a district in obtaining approval for a sublease under

any circumstances be required to reveal the name of the tenant to

whom the sublease is to be made.

(i) If lands or flats leased from the state under the provisions

of this section are utilized by the district or its sublessee for

any purpose or use not approved by the School Land Board, the

district shall be given notice and an opportunity to change and

correct the use. If the use is not changed and corrected within a

reasonable time after receipt of such notice, the lease may be

terminated by the School Land Board and the lands or flats shall

revert to the State of Texas.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 553, ch. 237, Sec. 1, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 801, ch. 310, Sec. 2,

eff. May 27, 1975.

Sec. 61.117. LIMITATIONS ON SALES AND USE OF STATE LANDS AND

FLATS. (a) The State of Texas shall retain its rights in all

mines and minerals, including oil, gas, and geothermal resources,

in and under the land, together with the right to enter the land

for the purpose of development when it leases land under Section

61.116 of this code.

(b) All leases of land under Section 61.116 are subject to oil,

gas, or mineral leases in existence at the time of the lease to

the district.

(c) Any land which has been franchised or leased or is being

used by any navigation district or by the United States for the

purpose of navigation, industry, or other purpose incident to the

operation of a port shall not be entered or possessed by the

State of Texas or by anyone claiming under the State of Texas for

the purpose of exploring for oil, gas, or other minerals except

by directional drilling. No easement, lease, or permit may be

granted on land which has been leased to a navigation district

which will interfere with the proposed use of the land by the

navigation district, and the prior approval of the navigation

district shall be obtained for such purpose.

(d) No surface drilling location may be nearer than 660 feet and

special permission from the Commissioner of the General Land

Office is necessary to make any surface location nearer than

2,160 feet, measured at right angles from the nearest bulkhead

line designated by a navigation district or the United States as

the bulkhead line or from the nearest dredged bottom edge of any

channel, slip, or turning basin which has been dredged, or which

has been authorized by the United States as a federal project for

future construction, whichever is nearer.

(e) In the event land is leased to a navigation district for

construction of a navigation project, the School Land Board may

in the lease designate the district to be the agent of the State

of Texas with authority to grant to the United States of America

such easements for dredging and disposal of dredged material as

may be required for federal participation in the project. In

designating the district to be the agent of the State of Texas

for the purpose of granting spoil easements, the board may

include a requirement that the district obtain the approval of

the board before granting any such easement. Such approval may be

given in the form of accepting a master plan for spoil disposal.

(f) Districts which, prior to the enactment of this provision,

have obtained patents to state owned lands or flats under Article

8225, Revised Civil Statutes of Texas, 1925, or under any general

or special act, and which still claim title to any such lands or

flats, may not hereafter dispose of any such lands or flats which

were conveyed to them by the State of Texas and may not lease

such lands or flats for a use for which districts are not

authorized to lease their other lands; however, in the event a

district possesses lands it finds to be in excess of its needs,

it may sell such surplus lands or flats back to the State of

Texas for the same consideration as originally paid to the state

or exchange them for other lands with the State of Texas. It is

further provided that the limitation on resale of lands or flats

acquired from the State of Texas shall not prevent a district

from exchanging such lands or flats for land, or rights in land,

of an adjacent littoral owner for the purpose of adjusting or

straightening the boundary between such lands. All such exchanges

made after December 31, 1973, shall be subject to the approval of

the School Land Board.

(g) Any district which, prior to the effective date of this Act

has maintained, and which at the effective date of this Act is

maintaining, any channel, dredged material disposal site, or

other navigational aid or improvement on state owned lands to

which the district holds no patent or lease from the state shall

notify the General Land Office of the boundaries of such

submerged land used by furnishing a map or other drawing

acceptable to the General Land Office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 555, ch. 237, Sec. 2, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 803, ch. 310, Sec. 3,

eff. May 27, 1975.

Sec. 61.118. CONSTRUCTION CONTRACTS. (a) Except as provided in

this section, the provisions of Chapter 3, Title 128, Revised

Civil Statutes of Texas, 1925, governing water control and

preservation districts which relate to advertising for, awarding,

and performing contracts for the construction of improvements and

work authorized by law shall apply to construction contracts made

under this subchapter.

(b) The bidder's deposit for a construction contract shall be

five percent of the amount bid, and the contractor's bond shall

be for not less than 25 percent of the contract price.

(c) The contract shall be signed by at least two of the

commissioners, and the partial payments made under the contract

shall not be more than 90 percent of the contract price.

(d) In case of public calamity or extreme emergency which makes

it necessary to act at once to preserve the property of the

district and its residents or in case of unforeseen damage to the

property or equipment of the district, the provisions of this

section requiring advertisement for bids under Article 7853,

Revised Civil Statutes of Texas, 1925, may be waived. In any of

these situations, the commission shall record in the minutes of

the district that an emergency exists and the facts which gave

rise to the emergency.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.119. INTEREST IN CONTRACT OF NAVIGATION DISTRICT. If

the county judge, a county commissioner, a member of the board or

the commission, or the engineer shall directly or indirectly

become interested in a contract for work to be done by the

district or in any fee paid by the district, which would allow

him to receive any money consideration or other thing of value

except in payment of services as provided by law, on conviction

he shall be confined in jail for not less than six months nor

more than one year.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.120. LAWS GOVERNING CERTAIN FUNCTIONS OF DISTRICT.

Chapter 3, Title 128, Revised Civil Statutes of Texas, 1925,

relating to eminent domain, employment and duties of the district

engineer, cooperation with the federal government, and the

director's annual report shall apply to this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER E. PORT FACILITIES

Sec. 61.151. AUTHORITY TO OPERATE AND DEVELOP PORT FACILITIES.

(a) A district created for the development of deep-water

navigation which includes a city with a population of more than

100,000, according to the last preceding federal census, may

operate and develop ports and waterways inside the district and

extending to the Gulf of Mexico.

(b) The district may acquire, purchase, take over, construct,

maintain, operate, develop, and regulate wharves, docks,

warehouses, grain elevators, bunkering facilities, belt

railroads, floating plants, lighterage, land, towing facilities,

and other facilities or aids incident to or necessary to the

operation or development of ports and waterways.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.152. PETITION. (a) If the board decides to exercise

the rights, powers, and authority provided in this subchapter, it

shall certify this desire to the commissioners court and shall

submit a petition requesting that an election be held.

(b) The commissioners court shall schedule a hearing on the

petition not less than 30 nor more than 60 days after the date of

the petition. The hearing may be held at any place designated by

the commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.153. HEARING: TESTIMONY. Any person who may be affected

may appear before the board on the day of the hearing and contest

the necessity, advisability, or practicability of the election

and may offer testimony in favor of or against the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.154. ELECTION ORDER. After the hearing, if the board

determines that the election should be held, the commissioners

court shall order an election to determine whether or not the

district should adopt the rights, powers, and authority provided

in this subchapter. The order shall include the date on which the

election will be held.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.155. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the following

proposition: "The development of the port by the navigation

district."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.156. ELECTION EXPENSE. The district shall pay the

expense of the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.157. DECLARATION OF RESULTS. If the result of the

election favors the development of a port by the district, the

commissioners court shall declare the result and shall enter in

the minutes of the commissioners court the following declaration:

"Commissioners Court __________ County, Texas, __________ term

A.D. __________, in the matter of the petition of the navigation

board, requesting that the right, power, and authority be granted

to the navigation district to develop the port of __________

(enter the name of the municipality). Be It Known, that at an

election called for that purpose in the district, held on the

__________ day of __________ A.D. __________, a two-thirds

majority of the electors voting on the proposition voted to

develop port facilities.

"Now, Therefore, It is considered and ordered by the

commissioners court that the district is authorized to proceed

with the development of the port as authorized by law."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.158. APPOINTMENT OF COMMISSIONERS. (a) If the

provisions of this subchapter are adopted by a district, the

district shall be managed, governed, and controlled by a

commission composed of five commissioners, who shall be subject

to the supervision and control of the board.

(b) Two of the commissioners shall be appointed by a majority of

the city council of the municipality having a population of

100,000 or more, and two of the commissioners shall be appointed

by a majority of the commissioners court.

(c) The chairman of the commission shall be the fifth member and

shall be elected by majority vote of the city council and

commissioners court meeting in joint session called by the county

judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.159. TERM OF OFFICE: REMOVAL: SUCCESSION. (a) Except

for the original appointments, each commissioner shall serve for

a term of two years and until his successor is qualified.

(b) One of the original appointees of the city council and one

of the commissioners court shall serve for one year. The other

original appointees shall serve for two years.

(c) Each commissioner shall serve his full term unless removed

by the authority which appointed him. He may be removed for

malfeasance, nonfeasance in office, inefficiency, or other

sufficient cause.

(d) If a vacancy occurs through death, resignation, or other

reason, the vacancy shall be filled in the manner provided for

making the original appointment.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.160. QUALIFICATIONS; COMPENSATION; AUTHORITY. (a) Each

commissioner shall be a freehold property taxpayer and a

qualified elector in the district.

(b) Each commissioner shall execute a bond and shall subscribe

the required oath.

(c) Each commissioner is entitled to receive the compensation

provided by the board.

(d) A majority of the commissioners shall have the authority to

act, and all acts of the commission are subject to the

supervision of the board.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.161. EMINENT DOMAIN. (a) The district may exercise the

power of eminent domain.

(b) A district created under this chapter may elect to take

advantage of the condemnation procedure provided in Subchapter F

of Chapter 51 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.162. LEASE AND RENTAL OF FACILITIES. A district may

acquire and take over, by lease or rental agreements, for a

period of not less than 25 years, the docks, wharves, buildings,

railroads, land, improvements, and other facilities already

provided, constructed, or owned by any incorporated municipality

situated within the district only with the consent of the lawful

authorities of the municipality and on terms mutually agreed on

by the district and the municipality.

(1) No agreement for the use, acquisition, or operation of the

property or facilities of the municipality by the district shall

be for a lease or rental value which is more than the annual net

revenue derived or to be derived by the district after payment of

the expenses of operation and maintenance of the property and

facilities.

(2) The district shall have no supervision or control over the

property or facilities owned, controlled, or constructed by the

municipality until agreement for the lease and rental of the

property by the district has been made.

(3) A district that is leasing land or facilities from a

municipality may purchase or acquire the property in the manner

provided in this subchapter.

(4) The commission and the officials of the municipality shall

be authorized to enter into an agreement stating the land and

facilities to be acquired, the amount agreed on as the purchase

price, and the terms of the sale.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.163. UNIMPROVED LAND. (a) A district which acquires,

leases, or takes over unimproved land owned or controlled by any

incorporated municipality, may pay for the use, rental, or hire

of the land a price or rental value to be fixed by the

commission.

(b) If the commission fails or is unable to agree on terms and

conditions for the use and rental of the unimproved land, then

the district, through the power of eminent domain, may condemn

the land or parts of the land which it thinks the interest of the

district requires.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.164. FRANCHISES. (a) The district may grant franchises

to persons or corporations on property owned or controlled by the

district if the franchises are granted for purposes consistent

with the provisions of this subchapter.

(b) No franchise shall be granted for longer than 30 years nor

shall a franchise be granted except on the affirmative vote of a

majority of the commissioners at three separate meetings of the

commission which meetings may not be closer together than one

week.

(c) No franchise shall be granted until after the franchise in

its final form is published in full at the expense of the

applicant, once a week for three consecutive weeks in a daily

newspaper of general circulation published inside the district.

(d) The franchise shall require the grantee to file his or their

written acceptance within 30 days after the franchise is finally

approved.

(e) Nothing in this section shall be construed as preventing the

district from granting revocable licenses or permits for the use

of limited portions of waterfront or facilities for purposes

consistent with this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1971, 62nd Leg., p. 1770, ch. 518, Sec. 15, eff.

May 13, 1971.

Sec. 61.165. FRANCHISE ELECTION. If the commission determines

that a proposed franchise should be submitted to a vote of the

people, it shall so certify to the commissioners court, and the

commissioners court shall order an election on the matter at the

earliest legal time.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.166. BALLOTS. (a) The ballot shall explain the nature

of the franchise sufficiently to identify it.

(b) The ballots shall be printed to provide for voting for or

against the following proposition: "The franchise."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.167. ELECTION RESULT. If at the election a majority of

those voting approve the franchise, it shall be granted. If those

voting do not approve the franchise, it shall have no force and

effect.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.168. PETITION PROTESTING FRANCHISE. The franchise may

be suspended from taking effect if, before the date when the

franchise is granted, a petition signed by qualified voters of

the district equal to 10 percent of the total vote cast in the

last general election for state officers is presented to the

commissioners court protesting the enactment or granting of the

franchise. Immediately after the petition is filed, the

commissioners court shall order an election on the proposed

franchise. The election shall be governed by the provisions of

Sections 61.164 and 61.165.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.169. CONTRACTS. The provisions governing the award of

contracts by districts shall apply in all cases consistent with

the provisions of this subchapter except that in case of

emergency contracts may be let by the commission for not more

than $5,000 without advertisement for bids. In case of urgent

necessity or present calamity, advertisement for bids may be

waived.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1977, 65th Leg., p. 804, ch. 299, Sec. 1, eff.

Aug. 29, 1977.

Sec. 61.170. AUTHORITY TO INCUR DEBT. (a) The district may

issue bonds for the purposes stated in Section 61.151 of this

code and for the purpose of

(1) acquiring necessary land, rights-of-way, or dumping grounds;

(2) extension or improvement of belt railway lines; or

(3) construction of improvements, wharves, docks, or other

facilities or aids to navigation.

(b) The obligations may be secured by liens on the property

acquired, constructed, or improved. Available revenue may be

pledged as additional security.

(c) The district may borrow funds for current expenses and may

evidence the debt by warrants payable not later than the close of

any calendar year for which the loans are made. The warrants

shall never exceed the anticipated revenue.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.171. BONDS. (a) On compliance with the provisions of

this subchapter the district may issue bonds to pay for the

improvements and facilities and to acquire the property

authorized in this subchapter.

(b) The district also may issue bonds to purchase wharves,

docks, warehouses, bunkering facilities, belt railroads, land to

be used for port purposes and development, or other facilities

constructed or owned by the municipality.

(c) An election shall be held to approve the issuance of the

bonds, and the bonds shall be issued in the manner provided by

this chapter for issuing other bonds.

(d) The outstanding bonds and the additional bonds may not

amount to more than 10 percent of the assessed value of real

property in the district as shown by the last annual assessment

made for the county and state.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.172. FINANCING PURCHASES. (a) The commission may have

issued in the manner provided in this chapter bonds of the

district in an amount that represents the purchase price of the

land or facilities less any outstanding bonds previously issued

by the municipality.

(b) The bonds shall be issued, registered, and sold in the same

manner as other bonds of the district, and the proceeds shall be

paid to the municipality.

(c) If the municipality has outstanding bonds, the district

shall assume payment of these bonds and interest, and the

commissioners court shall levy a tax sufficient to pay the

interest due and the principal due at the maturity of the bonds.

The taxes shall be collected as other taxes are now collected,

and payment shall be made to the city by the commission on or

before the due dates of interest and principal for the sole

purpose of paying the interest on and principal of the

outstanding bonds.

(d) The municipality shall not be released from any obligation

to the owners and holders of any outstanding bonds issued on

account of the land or facilities purchased.

(e) The municipality shall not levy, assess, and collect any tax

for interest and sinking fund unless the payment from the

district shall fail in whole or in part. In the event of such

failure, the municipality shall levy and collect the tax

necessary to discharge the interest and meet the principal of the

outstanding bonds and shall continue to do so until the amounts

are paid. Also, the municipality may collect any and all amounts

paid on account of the district from the district and in event of

the continued failure to make the payments by the district, the

municipality may take back the facilities.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.173. ELECTION ON THE PURCHASE OF FACILITIES. (a) No

bonds shall be issued or tax levied until the question of

purchase of the facilities is submitted to a vote of the people

in the district.

(b) In addition to the requirement for submitting bonds to a

vote, the notice of election shall include:

(1) a copy of the agreement;

(2) the amount of outstanding bonds;

(3) the amount of bonds sought to be issued by the district; and

(4) the amount of taxes required to be levied.

(c) The election shall be called and held in the same manner as

other elections for bonds, and the ballots shall provide for

voting for or against the proposition: "The purchase of municipal

facilities and the issuance of bonds and levy of a tax to pay for

the bonds."

(d) If the election should carry by a two-thirds vote of the

electors voting at the election, then the proposition shall be

declared carried and the bonds shall be issued and sold, and the

necessary taxes levied in accordance with the provisions of this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.174. EMPLOYEES; COUNTY AUDITOR, DUTIES AND COMPENSATION.

(a) The commission may employ all persons necessary for the

construction, maintenance, operation, and development of the

business and facilities of the district and may prescribe their

duties and fix their compensation.

(b) The county auditor, as auditor for the district having large

port facilities, shall make such additional reports and perform

such accounting services in addition to those now required by law

as may be reasonably incident to the proper conduct of the

business of the district.

(c) Compensation for the county auditor who shall act under this

section shall be determined by the judge of the district court or

courts having jurisdiction in the county after a hearing with

respect to the amount and value of the services performed. The

amount shall be paid monthly from funds of the navigation

district, and the maximum amount which may be allowed by the

district judge for the services shall not be more than the amount

now being paid.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.175. POWERS. (a) A district operating under this

subchapter shall have all the rights, powers, and authority

granted by this chapter and shall have all the authority granted

by general or special law to navigation districts.

(b) A district operating under this subchapter shall also have

the fullest powers consistent with the state constitution for the

regulation of wharfage and of all facilities relating to the

port, waterways, and district.

(c) The district may assess and collect charges for the use of

all facilities acquired or constructed in accordance with the

provisions of this subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.176. CITY POLICE POWERS. Nothing in this subchapter

shall repeal or affect the police powers of any municipality

inside the district, or any law, ordinance, or regulation

authorizing and empowering the municipality to exercise the

powers relating to any navigable stream or aids to navigation and

facilities in a navigation district, not in conflict with this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER F. GENERAL FISCAL PROVISIONS

Sec. 61.211. MAINTENANCE FUND. (a) After the district is

created all expenses necessarily incurred after the petition was

filed in connection with the creation, establishment, and

maintenance of the district shall be paid out of the construction

and maintenance fund of the district.

(b) The fund shall consist of all money received from the sale

of bonds and all other amounts received by the district from any

source, except tax collections applied to the sinking fund and

payment of interest on the navigation bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.212. DISTRICT DEPOSITORY. The commission shall select a

depository for the district as provided by Section 60.271.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 1400, Sec. 2, eff. Sept. 1,

1997.

SUBCHAPTER G. BOND AND TAX PROVISIONS

Sec. 61.231. ISSUANCE OF BONDS. When the commission determines

the cost of the proposed improvements, the expenses incident to

the improvements, and the cost of maintenance of the

improvements, it shall certify to the commissioners court the

amount of bonds necessary to be issued. The commissioners court,

at a regular or special meeting, shall issue an order directing

the issuance of bonds for the district in the amount certified

which shall not be more than the amount authorized by the

election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.232. LIMITATION ON BOND ISSUE. Outstanding bonds and

additional bonds which are authorized may not be more than

one-fourth of the assessed value of the real property in the

district, as shown by the last tax roll for the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.233. REQUISITES OF BONDS. (a) All bonds issued under

the provisions of this subchapter shall be issued in the name of

the district, signed by the county judge, and attested by the

county clerk under the seal of the commissioners court.

(b) The bonds shall be issued in such denominations and payable

at such time or times, not more than 40 years from their date, as

the commissioners court considers expedient.

(c) All provisions of Chapter 57 of this code governing the

approval, registration, and validity of bonds of levee

improvement districts shall apply to bonds issued under this

subchapter.

(d) The commissioners court or the board shall require a record

to be kept of the bonds by the district treasurer the same as for

bonds of levee improvement districts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.234. SALE OF BONDS. (a) After the bonds are

registered, the chairman of the commission shall offer them for

sale and shall sell the bonds for the best price possible.

(b) Money received from the sale of the bonds shall be paid

immediately to the district treasurer, and he shall deposit it to

the credit of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.235. CHAIRMAN'S BOND. Before the chairman of the

commission may sell the bonds, he shall execute a good bond,

payable to the county judge and his successors, in an amount

fixed by the commission, conditioned on the faithful discharge of

his duties. The bond shall be approved by the county judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.236. TAX LEVY. (a) When bonds have been approved, the

commissioners court annually shall levy and have assessed and

collected improvement taxes sufficient to pay the interest on the

bonds and to provide a sinking fund to redeem the bonds at

maturity.

(b) The commissioners court shall also at the time of the levy

of taxes for county purposes, levy and have assessed and

collected for the maintenance, operation, and upkeep of the

district and its improvements an annual tax of not more than 10

cents on each $100 valuation.

(c) The commission shall determine a rate within the 10-cent

limit as the necessary amount for the maintenance, operation, and

upkeep of the district and its improvements. The rate shall be

certified to the commissioners court by the commission.

(d) Taxes shall be levied on all property inside the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.237. ASSESSMENT AND COLLECTION OF TAXES. The tax

assessor and collector of each county in the district shall

assess and collect district taxes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.238. ADDITIONAL BOND ISSUE. (a) If the proceeds of the

original bonds are insufficient to complete the proposed

improvements or construction, or if the commission decides to

undertake further construction or improvements or requires

additional funds with which to maintain the existing

improvements, it shall certify to the commissioners court the

necessity for an additional bond issue, stating:

(1) the amount required;

(2) the purpose of the additional bonds;

(3) the rate of interest on the bonds; and

(4) the term of the bonds.

(b) The commissioners court, on receipt of this information,

shall issue the bonds, unless the amount previously authorized

has been exhausted, in which case the commissioners court shall

first order an election on the issuance of the bonds to be held

inside the district at the earliest possible legal time.

(c) The ballots for the issuance of additional bonds shall be

printed to provide for voting for or against the proposition:

"The issuance of bonds and the levy of a tax to pay for the

bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.239. SINKING FUND INVESTMENTS. The commissioners court

may invest the sinking fund in county, municipal, district, or

other bonds approved by the attorney general.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

State Codes and Statutes

Statutes > Texas > Water-code > Title-4-general-law-districts > Chapter-61-article-iii-section-52-navigation-districts

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 61. ARTICLE III, SECTION 52, NAVIGATION DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.001. DEFINITIONS. In this chapter:

(1) "District" means a navigation district created under Article

III, Section 52, of the Texas Constitution.

(2) "Commission" means the navigation and canal commission of a

district.

(3) "Board" means the navigation board.

(4) "Commissioners court" means the commissioners court of the

county in which the district is located or the commissioners

court of the county of jurisdiction.

(5) "Commissioner" means a member of the navigation and canal

commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 61.021. CREATION. A navigation district may be created as

provided in this chapter to operate under Article III, Section 52

of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.022. AREA INCLUDED IN DISTRICT. A district may include

all or part of a village, town, or municipal corporation, but may

not include more than all or parts of two counties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.023. DISTRICT MAY INCLUDE ROAD DISTRICT. On petition

signed by a majority of the property taxpayers who reside in the

special road district, a district which includes all or parts of

two counties may include any special road district which has

voted bonds to construct public roads. If the entire county which

includes the road district is included in the district, this

section does not apply.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.024. PETITION TO CREATE SINGLE-COUNTY DISTRICT. (a) To

create a district located wholly in one county, a petition,

signed by 25 of the resident property taxpayers, or if there are

fewer than 75 resident property taxpayers in the proposed

district, then by one-third of them, shall be presented to the

commissioners court of the county.

(b) The petition shall include:

(1) a request for the establishment of a navigation district;

(2) a description of the boundaries of the proposed district,

accompanied by a map;

(3) a statement of the general nature of the improvements

proposed;

(4) an estimate of the probable cost;

(5) a request for the issuance of bonds and the levy of a tax to

pay for the bonds; and

(6) the designation of a name for the district which shall

include the name of the county.

(c) An affidavit stating the qualifications of the petitioners

shall accompany the petition.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.025. PETITION TO CREATE DISTRICT IN TWO COUNTIES. (a)

If the proposed district is located in two counties, the petition

shall be presented to the commissioners court of the county which

includes the greater part of the district, and this county shall

be the county of jurisdiction with relation to all matters

concerning the district.

(b) The petition shall be signed by 25 resident property

taxpayers in each county in the district or if there are fewer

than 75 resident property taxpayers in either of the counties,

then by one-third of the resident property taxpayers in that

county.

(c) The name of the district shall include the name of the

county which has jurisdiction.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.026. DEPOSIT. (a) The petition shall be accompanied by

$500 in cash, which shall be deposited with the clerk of the

commissioners court.

(b) The money shall be held by the clerk until after the result

of the election for the creation of the district has been

declared and entered of record by the commissioners court.

(c) If the result of the election is in favor of the

establishment of the district, the deposit shall be returned to

the petitioners or their agent or attorney.

(d) If the result of the election is against the establishment

of the district, the clerk shall pay out of the $500, with

vouchers signed by the county judge, all costs and expenses

connected with the proposed district, including the election. Any

balance shall be returned to the petitioners or their agents or

attorney.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.027. HEARING. (a) On presentation of the petition, the

commissioners court shall order a hearing to be held at a regular

or special term of the commissioners court.

(b) The hearing shall be held not less than 30 days nor more

than 60 days from the date the petition is presented.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.028. NOTICE OF HEARING. (a) The commissioners court

shall order the clerk to give notice of the date and place of the

hearing by posting a copy of the petition and the order of the

commissioners court at the courthouse door and at four other

public places within the boundaries of the proposed district.

(b) The notices shall be posted not less than 20 days

immediately preceding the time set for the hearing.

(c) If the district is composed of more than one county, the

notices shall be posted in each county.

(d) The clerk is entitled to receive $1 for each notice he posts

and five cents a mile for each mile traveled to post the notices.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.029. HEARING BY BOARD. (a) If the proposed district

includes all or part of a city acting under special charter

granted by the legislature, the hearing shall be held at the

regular meeting place of the commissioners court before a board.

(b) The board shall include the county judge and the members of

the commissioners court and the mayor and the aldermen or

commissioners of the city or cities.

(c) The board shall pass on the petition with each individual

member having one vote.

(d) A majority in number of the persons composing the board

shall constitute a quorum, and the action of the quorum shall

control.

(e) The hearing shall be held and notice shall be given as

provided in Sections 61.027-61.028 of this code.

(f) The clerk shall record the proceedings of the board in the

book kept for that purpose, and this record shall be available

for public inspection.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.030. CONDUCT OF HEARING. (a) The commissioners court

or the board has exclusive jurisdiction to hear and determine all

contests and objections to the creation of the proposed district,

all matters relating to the creation of the proposed district,

and all subsequent proceedings of the proposed district after it

is organized.

(b) The commissioners court or the board may adjourn the hearing

from day to day, and all judgments or decisions rendered by it

shall be final unless otherwise provided in this chapter.

(c) Any person who might be affected by creation of the district

may appear at the hearing and support or oppose creation of the

proposed district and may offer testimony relating to:

(1) the necessity and feasibility of the proposed district;

(2) the benefits to accrue from formation of the proposed

district;

(3) the boundaries of the proposed district; or

(4) any other matter concerning the proposed district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.031. FINDINGS. (a) If it appears at the hearing that

the proposed improvements are feasible and practicable and would

be a public benefit and utility, the commissioners court or the

board shall make these findings and approve the boundaries stated

in the petition or make changes in the boundaries.

(b) Changes may not be made in the proposed boundaries until

notice is given and a hearing held in the manner provided in

Sections 61.027-61.030 of this code.

(c) If the commissioners court or board is unable to make the

findings under Subsection (a) of this section, it shall dismiss

the petition at the cost of the petitioners. Dismissal of the

petition shall not prevent presentation of other petitions at a

later date.

(d) The commissioners court or the board shall enter all

findings in its records.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.032. PROVIDING FUNDS FOR PROPOSED IMPROVEMENTS. (a) If

the commissioners court or the board approves the boundaries in

the petition or as changed and decides to grant the petition, it

shall determine the amount of money necessary for the

improvements and all expenses connected with the improvements and

whether to issue bonds for the full amount or, in the first

instance, for a less amount.

(b) The commissioners court or the board shall specify the

amount, term, and rate of interest of bonds to be issued.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.033. ELECTION ORDER. (a) If the commissioners court or

the board finds in favor of the establishment of the district and

the issuance of bonds and levy of a tax, the commissioners court

shall order an election to vote on the proposition.

(b) The election order shall specify the amount of the bonds to

be issued, their maturity dates, and the rate of interest.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.034. ELECTIONS. (a) When an election is held under

this chapter, notice shall be posted for 30 days before the

election in the manner provided for posting notice. The notice

shall include:

(1) the time and place of the election;

(2) the proposition;

(3) the purpose of the election; and

(4) a copy of the election order.

(b) Unless otherwise provided, a two-thirds vote is necessary to

carry a proposition submitted at an election.

(c) The commissioners court shall create and define, by order,

the voting precincts in the district and shall name convenient

polling places in the precincts. It shall appoint necessary

election officials and shall hold elections at the earliest legal

time.

(d) After canvassing the returns of an election, if the

commissioners court finds that the proposition has carried, it

shall declare the result and enter it in the minutes as provided

in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.035. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the proposition:

"The creation of a navigation district and the issuance of bonds

and the levy of a tax to pay for the bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.036. DECLARATION OF RESULT. If the proposition carries

at the election, the commissioners court shall enter the

following declaration in its minutes:

"Commissioners Court of __________ County, Texas, __________ term

A.D. ______: In the matter of the petition of __________ and

__________ others requesting the establishment of a navigation

district and the issuance of bonds and the levy of taxes in the

petition described and designated by the name of __________

Navigation District. Be it known that at an election called for

that purpose in the district, held on the ______ day of

__________ A.D. ______, a two-thirds majority of the electors

voting on the proposition voted in favor of the creation of the

navigation district, and the issuance of bonds and the levy of a

tax. Now, therefore, it is considered and ordered by the court

that the navigation district be and the same is hereby

established by the name of __________ Navigation District, and

that the bonds of the district in the amount of $______ be

issued, and a tax of ______ cents on the $100 valuation or so

much thereof as may be necessary to be levied on all property

inside the navigation district sufficient in amount to pay the

interest on the bonds and provide a sinking fund to redeem them

at maturity, and that if the tax becomes insufficient for these

purposes, it shall be increased until it is sufficient. The metes

and bounds of the district shall be as follows: (Description of

metes and bounds.)"

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 61.071. APPOINTMENT OF COMMISSIONERS. After a district is

created, the commissioners court or the board, by majority vote,

shall biennially appoint three commissioners to the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.072. ORGANIZATION: QUORUM. The commission shall

organize by electing one of their number chairman and one

secretary. Two of the commissioners shall constitute a quorum,

and a concurrence of two shall be sufficient in all matters

relating to the business of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.073. QUALIFICATIONS. To be qualified for appointment as

a commissioner, a person must be a resident of the district, a

freehold property taxpayer, and a qualified elector of the

county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.074. TERM OF OFFICE, REMOVAL, AND SUCCESSION. (a) Each

commissioner shall hold office for four years and until his

successor has qualified, unless sooner removed by a majority vote

of the commissioners court or the board for malfeasance or

nonfeasance in office.

(b) All vacancies in the office of commissioner shall be filled

for the unexpired term in the manner provided for the original

appointment to the office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1983, 68th Leg., p. 5217, ch. 951, Sec. 13, eff.

Jan. 1, 1984.

Sec. 61.075. COMMISSIONER'S OATH. Each commissioner shall

subscribe an oath before the county judge of the county of

jurisdiction to discharge faithfully the duties of his office

without favor or partiality, and to render a true account of his

activities to the commissioners court or the board which

appointed him. The oath shall be filed by the clerk and preserved

as a part of the records of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.076. COMMISSIONER'S BOND. Each commissioner shall

execute a good bond for $1,000, payable to the county judge for

the use and benefit of the district and conditioned on the

faithful performance of his duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.077. COMMISSIONERS' COMPENSATION. The commissioners are

entitled to receive for their services compensation fixed by the

commissioners court and entered in the record.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.078. DISTRICT TREASURER. The county treasurer of the

county of jurisdiction shall be treasurer of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.079. DISTRICT TREASURER'S BOND. (a) Before receiving

the proceeds of any district bonds and before receiving any

district funds from any source, the district treasurer shall

execute a good and sufficient bond payable to the commission for

the benefit of the district. The bond shall be in an amount fixed

and approved by the commission.

(b) The bond shall be conditioned on the district treasurer's

faithfully executing the duties of his office, paying over all

money that comes into his hands as the treasurer, and rendering a

just account to the commissioners court or the commission when

required to do so.

(c) The bond required by this section shall remain in full force

and effect as long as any funds belonging to the district are in

the possession or under the control of the treasurer.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.080. DISTRICT TREASURER'S COMPENSATION. The district

treasurer shall be entitled to receive for his services an amount

fixed by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.081. DUTIES IMPOSED WITHOUT COMPENSATION. The duties

and powers conferred on county, city and other officers under

this chapter are a part of the legal duty of the officers which

they shall perform without additional compensation, unless

otherwise provided in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.082. COURT ACTIONS. (a) The district, by and through

its commission, may sue and be sued in any court in this state in

the name of the district.

(b) The courts of this state shall take judicial notice of the

establishment of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 61.111. PURPOSES OF DISTRICT. A district may:

(1) improve rivers, bays, creeks, streams, and canals inside or

adjacent to the district;

(2) construct and maintain canals and waterways to permit or aid

navigation; and

(3) issue bonds to pay for these improvements.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.112. EMPLOYEES AND COUNSEL. (a) The commission may

employ assistant engineers and other employees which are

necessary and may determine their compensation.

(b) The commission may retain counsel to represent the district

in the preparation of contracts or in the conduct of any

proceedings in or out of court and to be the legal advisor of the

commission on terms and for fees agreed on by the parties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.113. AUTHORITY TO GO ON LAND. The commissioners and

engineers, together with all necessary teams, help, tools and

instruments, may go on any land located inside the district for

the purpose of examining the land and making plans, surveys,

maps, and profiles, without subjecting themselves to the laws of

trespass.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.114. PENALTY FOR PROHIBITING ENTRY TO LAND. Any person

who wilfully prevents or prohibits any officer listed in Section

61.113 of this code from entering land for the purposes stated in

that section on conviction shall be punished by a fine of not

more than $25 a day for each day he prevents or prohibits the

officer from entering the land.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.115. ACQUISITION OF PROPERTY. The commission may

acquire by gift, grant, purchase, or condemnation any necessary

rights-of-way and property for necessary improvements

contemplated by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.116. LEASE OF STATE OWNED LANDS AND FLATS. (a) Any

district organized under this chapter or any special law or any

general law under which navigation districts may be created may

apply for a lease from the State of Texas of the surface estate

of any lands and flats belonging to the state which are covered

or partly covered by the water of any of the bays or other arms

of the sea; however, any navigation district created after the

effective date of this Act may not lease the surface estate of

any such lands or flats which are located within 10 miles of the

boundary of any navigation district in existence on the effective

date of this Act, without first receiving the written approval of

the district now in existence. The words "navigation district,"

"district," or "districts" as used in Sections 61.116, 61.117,

and 60.038 of the Texas Water Code shall apply to any

incorporated city in this state which owns and operates wharves,

docks, and other marine port facilities.

(b) The state, through the School Land Board, may lease these

state owned lands or flats to eligible navigation districts only

for purposes reasonably related to the promotion of navigation.

The term "navigation" as used herein refers to marine commerce

and immediately related activities, including but not limited to

port development; channel construction and maintenance;

commercial and sport fishing; recreational boating; industrial

site locations; transportation, shipping, and storage facilities;

pollution abatement facilities; and all other activities

necessary or appropriate to the promotion of marine commerce; but

specifically does not refer to residential development.

(c) In making application for a lease of state owned lands or

flats, the district shall include the following information:

(1) a description of the lands or flats sought to be leased;

(2) a plan showing how it proposes to utilize the land and a

timetable indicating approximately when such utilization will

take place;

(3) a draft environmental impact statement assessing the effect

of the proposed use on the environment, which statement shall

generally conform to the requirements of the National

Environmental Policy Act, until such time as the legislature

shall impose different requirements; however, a draft

environmental impact statement shall not be required if the

proposed use requires no dredging, filling, or bulkheading. If

the proposed use does require dredging, filling, or bulkheading,

but the lease shall be processed as provided in Subsections (d),

(e), and (f) of this section without the filing of a draft

environmental impact statement if the applicant so requests in

writing; but in such a case, the School Land Board shall include

in the lease provisions requiring (i) that the draft

environmental impact statement required by federal law be filed

with the School Land Board before the district makes any use of

such lands or flats which requires dredging, filling, or

bulkheading; (ii) that approval of such use be obtained from the

School Land Board after copies of the summary of the draft

environmental impact statement and a description of the proposed

use are circulated for comment and a hearing held as provided in

Subsections (d) and (e) of this section and the School Land Board

shall be authorized to give its approval to make such amendments

to the lease as may then be deemed necessary by it as a result of

information developed in the draft environmental impact

statement; and (iii) that the lease shall cease to be effective

at a time specifically stated in the lease unless prior to that

time accord concerning environmental issues has been reached

between the district and the School Land Board;

(4) proof satisfactory to the board establishing the public

convenience and necessity for acquisition of lands sought to be

leased.

(d) Upon receipt of an application and accompanying information,

the School Land Board shall submit copies thereof to the member

agencies of the Interagency Council on Natural Resources and the

Environment and all other appropriate state agencies for review

and comment. In addition, the board shall submit for review and

comment the proposed terms and conditions of the lease. The board

shall allow 30 days for such review and comment, and may extend

the review period for an additional 30 days upon written request

by the executive director of any state agency.

(e) Following the expiration of the period provided for review

and comment, or following the expiration of the 30 day extension

of such period, if applicable, the School Land Board shall cause

a hearing to be held in the county in which the land proposed to

be leased is located. Notice of the hearing shall be given by

publication for at least three days, not less than two weeks nor

more than four weeks prior to the hearing, in the daily paper

having the greatest circulation in the county. Members of the

board or their designated representatives shall conduct the

hearing, at which any party may offer testimony in support of or

in opposition to the application, and the board shall consider

the record of the hearing in making a decision on the

application.

(f) After submission of all evidence, the School Land Board

shall authorize the issuance or denial of the proposed lease and

shall determine the reasonable cost to the district, term of

years, special limitations, if any, and other conditions

necessary to best serve the interest of the general public. In

establishing the consideration to be paid to the state for the

lease, due weight shall be given to the depth of the water over

the submerged land, its proximity to development activities, and

its proposed use. Final action shall be taken by the board no

more than 60 days following the public hearing.

(g) The funds derived from the lease shall be paid to the

General Land Office for transfer to the proper funds of the

state.

(h) Districts may sublease lands leased from the state under the

provisions of this section to third parties for activities

reasonably related to navigation, but such sublease shall be

subject to the approval of the School Land Board according to the

procedures, requirements, and criteria set forth in Subsections

(c) and (d) of Section 61.116 of this code; provided, however,

that no approval by the School Land Board shall be required if

the sublease is for a purpose contemplated by the district and

approved by the board in the district's original lease. It is

further provided that no environmental impact statement shall

ever be necessary for any sublease which requires no dredging,

filling, or bulkheading, and which would not have a substantial

impact upon the environment, or which requires only insubstantial

dredging, filling, or bulkheading, as determined by the board;

nor shall a district in obtaining approval for a sublease under

any circumstances be required to reveal the name of the tenant to

whom the sublease is to be made.

(i) If lands or flats leased from the state under the provisions

of this section are utilized by the district or its sublessee for

any purpose or use not approved by the School Land Board, the

district shall be given notice and an opportunity to change and

correct the use. If the use is not changed and corrected within a

reasonable time after receipt of such notice, the lease may be

terminated by the School Land Board and the lands or flats shall

revert to the State of Texas.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 553, ch. 237, Sec. 1, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 801, ch. 310, Sec. 2,

eff. May 27, 1975.

Sec. 61.117. LIMITATIONS ON SALES AND USE OF STATE LANDS AND

FLATS. (a) The State of Texas shall retain its rights in all

mines and minerals, including oil, gas, and geothermal resources,

in and under the land, together with the right to enter the land

for the purpose of development when it leases land under Section

61.116 of this code.

(b) All leases of land under Section 61.116 are subject to oil,

gas, or mineral leases in existence at the time of the lease to

the district.

(c) Any land which has been franchised or leased or is being

used by any navigation district or by the United States for the

purpose of navigation, industry, or other purpose incident to the

operation of a port shall not be entered or possessed by the

State of Texas or by anyone claiming under the State of Texas for

the purpose of exploring for oil, gas, or other minerals except

by directional drilling. No easement, lease, or permit may be

granted on land which has been leased to a navigation district

which will interfere with the proposed use of the land by the

navigation district, and the prior approval of the navigation

district shall be obtained for such purpose.

(d) No surface drilling location may be nearer than 660 feet and

special permission from the Commissioner of the General Land

Office is necessary to make any surface location nearer than

2,160 feet, measured at right angles from the nearest bulkhead

line designated by a navigation district or the United States as

the bulkhead line or from the nearest dredged bottom edge of any

channel, slip, or turning basin which has been dredged, or which

has been authorized by the United States as a federal project for

future construction, whichever is nearer.

(e) In the event land is leased to a navigation district for

construction of a navigation project, the School Land Board may

in the lease designate the district to be the agent of the State

of Texas with authority to grant to the United States of America

such easements for dredging and disposal of dredged material as

may be required for federal participation in the project. In

designating the district to be the agent of the State of Texas

for the purpose of granting spoil easements, the board may

include a requirement that the district obtain the approval of

the board before granting any such easement. Such approval may be

given in the form of accepting a master plan for spoil disposal.

(f) Districts which, prior to the enactment of this provision,

have obtained patents to state owned lands or flats under Article

8225, Revised Civil Statutes of Texas, 1925, or under any general

or special act, and which still claim title to any such lands or

flats, may not hereafter dispose of any such lands or flats which

were conveyed to them by the State of Texas and may not lease

such lands or flats for a use for which districts are not

authorized to lease their other lands; however, in the event a

district possesses lands it finds to be in excess of its needs,

it may sell such surplus lands or flats back to the State of

Texas for the same consideration as originally paid to the state

or exchange them for other lands with the State of Texas. It is

further provided that the limitation on resale of lands or flats

acquired from the State of Texas shall not prevent a district

from exchanging such lands or flats for land, or rights in land,

of an adjacent littoral owner for the purpose of adjusting or

straightening the boundary between such lands. All such exchanges

made after December 31, 1973, shall be subject to the approval of

the School Land Board.

(g) Any district which, prior to the effective date of this Act

has maintained, and which at the effective date of this Act is

maintaining, any channel, dredged material disposal site, or

other navigational aid or improvement on state owned lands to

which the district holds no patent or lease from the state shall

notify the General Land Office of the boundaries of such

submerged land used by furnishing a map or other drawing

acceptable to the General Land Office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 555, ch. 237, Sec. 2, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 803, ch. 310, Sec. 3,

eff. May 27, 1975.

Sec. 61.118. CONSTRUCTION CONTRACTS. (a) Except as provided in

this section, the provisions of Chapter 3, Title 128, Revised

Civil Statutes of Texas, 1925, governing water control and

preservation districts which relate to advertising for, awarding,

and performing contracts for the construction of improvements and

work authorized by law shall apply to construction contracts made

under this subchapter.

(b) The bidder's deposit for a construction contract shall be

five percent of the amount bid, and the contractor's bond shall

be for not less than 25 percent of the contract price.

(c) The contract shall be signed by at least two of the

commissioners, and the partial payments made under the contract

shall not be more than 90 percent of the contract price.

(d) In case of public calamity or extreme emergency which makes

it necessary to act at once to preserve the property of the

district and its residents or in case of unforeseen damage to the

property or equipment of the district, the provisions of this

section requiring advertisement for bids under Article 7853,

Revised Civil Statutes of Texas, 1925, may be waived. In any of

these situations, the commission shall record in the minutes of

the district that an emergency exists and the facts which gave

rise to the emergency.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.119. INTEREST IN CONTRACT OF NAVIGATION DISTRICT. If

the county judge, a county commissioner, a member of the board or

the commission, or the engineer shall directly or indirectly

become interested in a contract for work to be done by the

district or in any fee paid by the district, which would allow

him to receive any money consideration or other thing of value

except in payment of services as provided by law, on conviction

he shall be confined in jail for not less than six months nor

more than one year.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.120. LAWS GOVERNING CERTAIN FUNCTIONS OF DISTRICT.

Chapter 3, Title 128, Revised Civil Statutes of Texas, 1925,

relating to eminent domain, employment and duties of the district

engineer, cooperation with the federal government, and the

director's annual report shall apply to this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER E. PORT FACILITIES

Sec. 61.151. AUTHORITY TO OPERATE AND DEVELOP PORT FACILITIES.

(a) A district created for the development of deep-water

navigation which includes a city with a population of more than

100,000, according to the last preceding federal census, may

operate and develop ports and waterways inside the district and

extending to the Gulf of Mexico.

(b) The district may acquire, purchase, take over, construct,

maintain, operate, develop, and regulate wharves, docks,

warehouses, grain elevators, bunkering facilities, belt

railroads, floating plants, lighterage, land, towing facilities,

and other facilities or aids incident to or necessary to the

operation or development of ports and waterways.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.152. PETITION. (a) If the board decides to exercise

the rights, powers, and authority provided in this subchapter, it

shall certify this desire to the commissioners court and shall

submit a petition requesting that an election be held.

(b) The commissioners court shall schedule a hearing on the

petition not less than 30 nor more than 60 days after the date of

the petition. The hearing may be held at any place designated by

the commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.153. HEARING: TESTIMONY. Any person who may be affected

may appear before the board on the day of the hearing and contest

the necessity, advisability, or practicability of the election

and may offer testimony in favor of or against the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.154. ELECTION ORDER. After the hearing, if the board

determines that the election should be held, the commissioners

court shall order an election to determine whether or not the

district should adopt the rights, powers, and authority provided

in this subchapter. The order shall include the date on which the

election will be held.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.155. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the following

proposition: "The development of the port by the navigation

district."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.156. ELECTION EXPENSE. The district shall pay the

expense of the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.157. DECLARATION OF RESULTS. If the result of the

election favors the development of a port by the district, the

commissioners court shall declare the result and shall enter in

the minutes of the commissioners court the following declaration:

"Commissioners Court __________ County, Texas, __________ term

A.D. __________, in the matter of the petition of the navigation

board, requesting that the right, power, and authority be granted

to the navigation district to develop the port of __________

(enter the name of the municipality). Be It Known, that at an

election called for that purpose in the district, held on the

__________ day of __________ A.D. __________, a two-thirds

majority of the electors voting on the proposition voted to

develop port facilities.

"Now, Therefore, It is considered and ordered by the

commissioners court that the district is authorized to proceed

with the development of the port as authorized by law."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.158. APPOINTMENT OF COMMISSIONERS. (a) If the

provisions of this subchapter are adopted by a district, the

district shall be managed, governed, and controlled by a

commission composed of five commissioners, who shall be subject

to the supervision and control of the board.

(b) Two of the commissioners shall be appointed by a majority of

the city council of the municipality having a population of

100,000 or more, and two of the commissioners shall be appointed

by a majority of the commissioners court.

(c) The chairman of the commission shall be the fifth member and

shall be elected by majority vote of the city council and

commissioners court meeting in joint session called by the county

judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.159. TERM OF OFFICE: REMOVAL: SUCCESSION. (a) Except

for the original appointments, each commissioner shall serve for

a term of two years and until his successor is qualified.

(b) One of the original appointees of the city council and one

of the commissioners court shall serve for one year. The other

original appointees shall serve for two years.

(c) Each commissioner shall serve his full term unless removed

by the authority which appointed him. He may be removed for

malfeasance, nonfeasance in office, inefficiency, or other

sufficient cause.

(d) If a vacancy occurs through death, resignation, or other

reason, the vacancy shall be filled in the manner provided for

making the original appointment.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.160. QUALIFICATIONS; COMPENSATION; AUTHORITY. (a) Each

commissioner shall be a freehold property taxpayer and a

qualified elector in the district.

(b) Each commissioner shall execute a bond and shall subscribe

the required oath.

(c) Each commissioner is entitled to receive the compensation

provided by the board.

(d) A majority of the commissioners shall have the authority to

act, and all acts of the commission are subject to the

supervision of the board.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.161. EMINENT DOMAIN. (a) The district may exercise the

power of eminent domain.

(b) A district created under this chapter may elect to take

advantage of the condemnation procedure provided in Subchapter F

of Chapter 51 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.162. LEASE AND RENTAL OF FACILITIES. A district may

acquire and take over, by lease or rental agreements, for a

period of not less than 25 years, the docks, wharves, buildings,

railroads, land, improvements, and other facilities already

provided, constructed, or owned by any incorporated municipality

situated within the district only with the consent of the lawful

authorities of the municipality and on terms mutually agreed on

by the district and the municipality.

(1) No agreement for the use, acquisition, or operation of the

property or facilities of the municipality by the district shall

be for a lease or rental value which is more than the annual net

revenue derived or to be derived by the district after payment of

the expenses of operation and maintenance of the property and

facilities.

(2) The district shall have no supervision or control over the

property or facilities owned, controlled, or constructed by the

municipality until agreement for the lease and rental of the

property by the district has been made.

(3) A district that is leasing land or facilities from a

municipality may purchase or acquire the property in the manner

provided in this subchapter.

(4) The commission and the officials of the municipality shall

be authorized to enter into an agreement stating the land and

facilities to be acquired, the amount agreed on as the purchase

price, and the terms of the sale.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.163. UNIMPROVED LAND. (a) A district which acquires,

leases, or takes over unimproved land owned or controlled by any

incorporated municipality, may pay for the use, rental, or hire

of the land a price or rental value to be fixed by the

commission.

(b) If the commission fails or is unable to agree on terms and

conditions for the use and rental of the unimproved land, then

the district, through the power of eminent domain, may condemn

the land or parts of the land which it thinks the interest of the

district requires.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.164. FRANCHISES. (a) The district may grant franchises

to persons or corporations on property owned or controlled by the

district if the franchises are granted for purposes consistent

with the provisions of this subchapter.

(b) No franchise shall be granted for longer than 30 years nor

shall a franchise be granted except on the affirmative vote of a

majority of the commissioners at three separate meetings of the

commission which meetings may not be closer together than one

week.

(c) No franchise shall be granted until after the franchise in

its final form is published in full at the expense of the

applicant, once a week for three consecutive weeks in a daily

newspaper of general circulation published inside the district.

(d) The franchise shall require the grantee to file his or their

written acceptance within 30 days after the franchise is finally

approved.

(e) Nothing in this section shall be construed as preventing the

district from granting revocable licenses or permits for the use

of limited portions of waterfront or facilities for purposes

consistent with this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1971, 62nd Leg., p. 1770, ch. 518, Sec. 15, eff.

May 13, 1971.

Sec. 61.165. FRANCHISE ELECTION. If the commission determines

that a proposed franchise should be submitted to a vote of the

people, it shall so certify to the commissioners court, and the

commissioners court shall order an election on the matter at the

earliest legal time.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.166. BALLOTS. (a) The ballot shall explain the nature

of the franchise sufficiently to identify it.

(b) The ballots shall be printed to provide for voting for or

against the following proposition: "The franchise."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.167. ELECTION RESULT. If at the election a majority of

those voting approve the franchise, it shall be granted. If those

voting do not approve the franchise, it shall have no force and

effect.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.168. PETITION PROTESTING FRANCHISE. The franchise may

be suspended from taking effect if, before the date when the

franchise is granted, a petition signed by qualified voters of

the district equal to 10 percent of the total vote cast in the

last general election for state officers is presented to the

commissioners court protesting the enactment or granting of the

franchise. Immediately after the petition is filed, the

commissioners court shall order an election on the proposed

franchise. The election shall be governed by the provisions of

Sections 61.164 and 61.165.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.169. CONTRACTS. The provisions governing the award of

contracts by districts shall apply in all cases consistent with

the provisions of this subchapter except that in case of

emergency contracts may be let by the commission for not more

than $5,000 without advertisement for bids. In case of urgent

necessity or present calamity, advertisement for bids may be

waived.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1977, 65th Leg., p. 804, ch. 299, Sec. 1, eff.

Aug. 29, 1977.

Sec. 61.170. AUTHORITY TO INCUR DEBT. (a) The district may

issue bonds for the purposes stated in Section 61.151 of this

code and for the purpose of

(1) acquiring necessary land, rights-of-way, or dumping grounds;

(2) extension or improvement of belt railway lines; or

(3) construction of improvements, wharves, docks, or other

facilities or aids to navigation.

(b) The obligations may be secured by liens on the property

acquired, constructed, or improved. Available revenue may be

pledged as additional security.

(c) The district may borrow funds for current expenses and may

evidence the debt by warrants payable not later than the close of

any calendar year for which the loans are made. The warrants

shall never exceed the anticipated revenue.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.171. BONDS. (a) On compliance with the provisions of

this subchapter the district may issue bonds to pay for the

improvements and facilities and to acquire the property

authorized in this subchapter.

(b) The district also may issue bonds to purchase wharves,

docks, warehouses, bunkering facilities, belt railroads, land to

be used for port purposes and development, or other facilities

constructed or owned by the municipality.

(c) An election shall be held to approve the issuance of the

bonds, and the bonds shall be issued in the manner provided by

this chapter for issuing other bonds.

(d) The outstanding bonds and the additional bonds may not

amount to more than 10 percent of the assessed value of real

property in the district as shown by the last annual assessment

made for the county and state.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.172. FINANCING PURCHASES. (a) The commission may have

issued in the manner provided in this chapter bonds of the

district in an amount that represents the purchase price of the

land or facilities less any outstanding bonds previously issued

by the municipality.

(b) The bonds shall be issued, registered, and sold in the same

manner as other bonds of the district, and the proceeds shall be

paid to the municipality.

(c) If the municipality has outstanding bonds, the district

shall assume payment of these bonds and interest, and the

commissioners court shall levy a tax sufficient to pay the

interest due and the principal due at the maturity of the bonds.

The taxes shall be collected as other taxes are now collected,

and payment shall be made to the city by the commission on or

before the due dates of interest and principal for the sole

purpose of paying the interest on and principal of the

outstanding bonds.

(d) The municipality shall not be released from any obligation

to the owners and holders of any outstanding bonds issued on

account of the land or facilities purchased.

(e) The municipality shall not levy, assess, and collect any tax

for interest and sinking fund unless the payment from the

district shall fail in whole or in part. In the event of such

failure, the municipality shall levy and collect the tax

necessary to discharge the interest and meet the principal of the

outstanding bonds and shall continue to do so until the amounts

are paid. Also, the municipality may collect any and all amounts

paid on account of the district from the district and in event of

the continued failure to make the payments by the district, the

municipality may take back the facilities.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.173. ELECTION ON THE PURCHASE OF FACILITIES. (a) No

bonds shall be issued or tax levied until the question of

purchase of the facilities is submitted to a vote of the people

in the district.

(b) In addition to the requirement for submitting bonds to a

vote, the notice of election shall include:

(1) a copy of the agreement;

(2) the amount of outstanding bonds;

(3) the amount of bonds sought to be issued by the district; and

(4) the amount of taxes required to be levied.

(c) The election shall be called and held in the same manner as

other elections for bonds, and the ballots shall provide for

voting for or against the proposition: "The purchase of municipal

facilities and the issuance of bonds and levy of a tax to pay for

the bonds."

(d) If the election should carry by a two-thirds vote of the

electors voting at the election, then the proposition shall be

declared carried and the bonds shall be issued and sold, and the

necessary taxes levied in accordance with the provisions of this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.174. EMPLOYEES; COUNTY AUDITOR, DUTIES AND COMPENSATION.

(a) The commission may employ all persons necessary for the

construction, maintenance, operation, and development of the

business and facilities of the district and may prescribe their

duties and fix their compensation.

(b) The county auditor, as auditor for the district having large

port facilities, shall make such additional reports and perform

such accounting services in addition to those now required by law

as may be reasonably incident to the proper conduct of the

business of the district.

(c) Compensation for the county auditor who shall act under this

section shall be determined by the judge of the district court or

courts having jurisdiction in the county after a hearing with

respect to the amount and value of the services performed. The

amount shall be paid monthly from funds of the navigation

district, and the maximum amount which may be allowed by the

district judge for the services shall not be more than the amount

now being paid.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.175. POWERS. (a) A district operating under this

subchapter shall have all the rights, powers, and authority

granted by this chapter and shall have all the authority granted

by general or special law to navigation districts.

(b) A district operating under this subchapter shall also have

the fullest powers consistent with the state constitution for the

regulation of wharfage and of all facilities relating to the

port, waterways, and district.

(c) The district may assess and collect charges for the use of

all facilities acquired or constructed in accordance with the

provisions of this subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.176. CITY POLICE POWERS. Nothing in this subchapter

shall repeal or affect the police powers of any municipality

inside the district, or any law, ordinance, or regulation

authorizing and empowering the municipality to exercise the

powers relating to any navigable stream or aids to navigation and

facilities in a navigation district, not in conflict with this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER F. GENERAL FISCAL PROVISIONS

Sec. 61.211. MAINTENANCE FUND. (a) After the district is

created all expenses necessarily incurred after the petition was

filed in connection with the creation, establishment, and

maintenance of the district shall be paid out of the construction

and maintenance fund of the district.

(b) The fund shall consist of all money received from the sale

of bonds and all other amounts received by the district from any

source, except tax collections applied to the sinking fund and

payment of interest on the navigation bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.212. DISTRICT DEPOSITORY. The commission shall select a

depository for the district as provided by Section 60.271.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 1400, Sec. 2, eff. Sept. 1,

1997.

SUBCHAPTER G. BOND AND TAX PROVISIONS

Sec. 61.231. ISSUANCE OF BONDS. When the commission determines

the cost of the proposed improvements, the expenses incident to

the improvements, and the cost of maintenance of the

improvements, it shall certify to the commissioners court the

amount of bonds necessary to be issued. The commissioners court,

at a regular or special meeting, shall issue an order directing

the issuance of bonds for the district in the amount certified

which shall not be more than the amount authorized by the

election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.232. LIMITATION ON BOND ISSUE. Outstanding bonds and

additional bonds which are authorized may not be more than

one-fourth of the assessed value of the real property in the

district, as shown by the last tax roll for the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.233. REQUISITES OF BONDS. (a) All bonds issued under

the provisions of this subchapter shall be issued in the name of

the district, signed by the county judge, and attested by the

county clerk under the seal of the commissioners court.

(b) The bonds shall be issued in such denominations and payable

at such time or times, not more than 40 years from their date, as

the commissioners court considers expedient.

(c) All provisions of Chapter 57 of this code governing the

approval, registration, and validity of bonds of levee

improvement districts shall apply to bonds issued under this

subchapter.

(d) The commissioners court or the board shall require a record

to be kept of the bonds by the district treasurer the same as for

bonds of levee improvement districts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.234. SALE OF BONDS. (a) After the bonds are

registered, the chairman of the commission shall offer them for

sale and shall sell the bonds for the best price possible.

(b) Money received from the sale of the bonds shall be paid

immediately to the district treasurer, and he shall deposit it to

the credit of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.235. CHAIRMAN'S BOND. Before the chairman of the

commission may sell the bonds, he shall execute a good bond,

payable to the county judge and his successors, in an amount

fixed by the commission, conditioned on the faithful discharge of

his duties. The bond shall be approved by the county judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.236. TAX LEVY. (a) When bonds have been approved, the

commissioners court annually shall levy and have assessed and

collected improvement taxes sufficient to pay the interest on the

bonds and to provide a sinking fund to redeem the bonds at

maturity.

(b) The commissioners court shall also at the time of the levy

of taxes for county purposes, levy and have assessed and

collected for the maintenance, operation, and upkeep of the

district and its improvements an annual tax of not more than 10

cents on each $100 valuation.

(c) The commission shall determine a rate within the 10-cent

limit as the necessary amount for the maintenance, operation, and

upkeep of the district and its improvements. The rate shall be

certified to the commissioners court by the commission.

(d) Taxes shall be levied on all property inside the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.237. ASSESSMENT AND COLLECTION OF TAXES. The tax

assessor and collector of each county in the district shall

assess and collect district taxes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.238. ADDITIONAL BOND ISSUE. (a) If the proceeds of the

original bonds are insufficient to complete the proposed

improvements or construction, or if the commission decides to

undertake further construction or improvements or requires

additional funds with which to maintain the existing

improvements, it shall certify to the commissioners court the

necessity for an additional bond issue, stating:

(1) the amount required;

(2) the purpose of the additional bonds;

(3) the rate of interest on the bonds; and

(4) the term of the bonds.

(b) The commissioners court, on receipt of this information,

shall issue the bonds, unless the amount previously authorized

has been exhausted, in which case the commissioners court shall

first order an election on the issuance of the bonds to be held

inside the district at the earliest possible legal time.

(c) The ballots for the issuance of additional bonds shall be

printed to provide for voting for or against the proposition:

"The issuance of bonds and the levy of a tax to pay for the

bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.239. SINKING FUND INVESTMENTS. The commissioners court

may invest the sinking fund in county, municipal, district, or

other bonds approved by the attorney general.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Water-code > Title-4-general-law-districts > Chapter-61-article-iii-section-52-navigation-districts

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 61. ARTICLE III, SECTION 52, NAVIGATION DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.001. DEFINITIONS. In this chapter:

(1) "District" means a navigation district created under Article

III, Section 52, of the Texas Constitution.

(2) "Commission" means the navigation and canal commission of a

district.

(3) "Board" means the navigation board.

(4) "Commissioners court" means the commissioners court of the

county in which the district is located or the commissioners

court of the county of jurisdiction.

(5) "Commissioner" means a member of the navigation and canal

commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 61.021. CREATION. A navigation district may be created as

provided in this chapter to operate under Article III, Section 52

of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.022. AREA INCLUDED IN DISTRICT. A district may include

all or part of a village, town, or municipal corporation, but may

not include more than all or parts of two counties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.023. DISTRICT MAY INCLUDE ROAD DISTRICT. On petition

signed by a majority of the property taxpayers who reside in the

special road district, a district which includes all or parts of

two counties may include any special road district which has

voted bonds to construct public roads. If the entire county which

includes the road district is included in the district, this

section does not apply.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.024. PETITION TO CREATE SINGLE-COUNTY DISTRICT. (a) To

create a district located wholly in one county, a petition,

signed by 25 of the resident property taxpayers, or if there are

fewer than 75 resident property taxpayers in the proposed

district, then by one-third of them, shall be presented to the

commissioners court of the county.

(b) The petition shall include:

(1) a request for the establishment of a navigation district;

(2) a description of the boundaries of the proposed district,

accompanied by a map;

(3) a statement of the general nature of the improvements

proposed;

(4) an estimate of the probable cost;

(5) a request for the issuance of bonds and the levy of a tax to

pay for the bonds; and

(6) the designation of a name for the district which shall

include the name of the county.

(c) An affidavit stating the qualifications of the petitioners

shall accompany the petition.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.025. PETITION TO CREATE DISTRICT IN TWO COUNTIES. (a)

If the proposed district is located in two counties, the petition

shall be presented to the commissioners court of the county which

includes the greater part of the district, and this county shall

be the county of jurisdiction with relation to all matters

concerning the district.

(b) The petition shall be signed by 25 resident property

taxpayers in each county in the district or if there are fewer

than 75 resident property taxpayers in either of the counties,

then by one-third of the resident property taxpayers in that

county.

(c) The name of the district shall include the name of the

county which has jurisdiction.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.026. DEPOSIT. (a) The petition shall be accompanied by

$500 in cash, which shall be deposited with the clerk of the

commissioners court.

(b) The money shall be held by the clerk until after the result

of the election for the creation of the district has been

declared and entered of record by the commissioners court.

(c) If the result of the election is in favor of the

establishment of the district, the deposit shall be returned to

the petitioners or their agent or attorney.

(d) If the result of the election is against the establishment

of the district, the clerk shall pay out of the $500, with

vouchers signed by the county judge, all costs and expenses

connected with the proposed district, including the election. Any

balance shall be returned to the petitioners or their agents or

attorney.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.027. HEARING. (a) On presentation of the petition, the

commissioners court shall order a hearing to be held at a regular

or special term of the commissioners court.

(b) The hearing shall be held not less than 30 days nor more

than 60 days from the date the petition is presented.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.028. NOTICE OF HEARING. (a) The commissioners court

shall order the clerk to give notice of the date and place of the

hearing by posting a copy of the petition and the order of the

commissioners court at the courthouse door and at four other

public places within the boundaries of the proposed district.

(b) The notices shall be posted not less than 20 days

immediately preceding the time set for the hearing.

(c) If the district is composed of more than one county, the

notices shall be posted in each county.

(d) The clerk is entitled to receive $1 for each notice he posts

and five cents a mile for each mile traveled to post the notices.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.029. HEARING BY BOARD. (a) If the proposed district

includes all or part of a city acting under special charter

granted by the legislature, the hearing shall be held at the

regular meeting place of the commissioners court before a board.

(b) The board shall include the county judge and the members of

the commissioners court and the mayor and the aldermen or

commissioners of the city or cities.

(c) The board shall pass on the petition with each individual

member having one vote.

(d) A majority in number of the persons composing the board

shall constitute a quorum, and the action of the quorum shall

control.

(e) The hearing shall be held and notice shall be given as

provided in Sections 61.027-61.028 of this code.

(f) The clerk shall record the proceedings of the board in the

book kept for that purpose, and this record shall be available

for public inspection.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.030. CONDUCT OF HEARING. (a) The commissioners court

or the board has exclusive jurisdiction to hear and determine all

contests and objections to the creation of the proposed district,

all matters relating to the creation of the proposed district,

and all subsequent proceedings of the proposed district after it

is organized.

(b) The commissioners court or the board may adjourn the hearing

from day to day, and all judgments or decisions rendered by it

shall be final unless otherwise provided in this chapter.

(c) Any person who might be affected by creation of the district

may appear at the hearing and support or oppose creation of the

proposed district and may offer testimony relating to:

(1) the necessity and feasibility of the proposed district;

(2) the benefits to accrue from formation of the proposed

district;

(3) the boundaries of the proposed district; or

(4) any other matter concerning the proposed district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.031. FINDINGS. (a) If it appears at the hearing that

the proposed improvements are feasible and practicable and would

be a public benefit and utility, the commissioners court or the

board shall make these findings and approve the boundaries stated

in the petition or make changes in the boundaries.

(b) Changes may not be made in the proposed boundaries until

notice is given and a hearing held in the manner provided in

Sections 61.027-61.030 of this code.

(c) If the commissioners court or board is unable to make the

findings under Subsection (a) of this section, it shall dismiss

the petition at the cost of the petitioners. Dismissal of the

petition shall not prevent presentation of other petitions at a

later date.

(d) The commissioners court or the board shall enter all

findings in its records.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.032. PROVIDING FUNDS FOR PROPOSED IMPROVEMENTS. (a) If

the commissioners court or the board approves the boundaries in

the petition or as changed and decides to grant the petition, it

shall determine the amount of money necessary for the

improvements and all expenses connected with the improvements and

whether to issue bonds for the full amount or, in the first

instance, for a less amount.

(b) The commissioners court or the board shall specify the

amount, term, and rate of interest of bonds to be issued.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.033. ELECTION ORDER. (a) If the commissioners court or

the board finds in favor of the establishment of the district and

the issuance of bonds and levy of a tax, the commissioners court

shall order an election to vote on the proposition.

(b) The election order shall specify the amount of the bonds to

be issued, their maturity dates, and the rate of interest.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.034. ELECTIONS. (a) When an election is held under

this chapter, notice shall be posted for 30 days before the

election in the manner provided for posting notice. The notice

shall include:

(1) the time and place of the election;

(2) the proposition;

(3) the purpose of the election; and

(4) a copy of the election order.

(b) Unless otherwise provided, a two-thirds vote is necessary to

carry a proposition submitted at an election.

(c) The commissioners court shall create and define, by order,

the voting precincts in the district and shall name convenient

polling places in the precincts. It shall appoint necessary

election officials and shall hold elections at the earliest legal

time.

(d) After canvassing the returns of an election, if the

commissioners court finds that the proposition has carried, it

shall declare the result and enter it in the minutes as provided

in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.035. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the proposition:

"The creation of a navigation district and the issuance of bonds

and the levy of a tax to pay for the bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.036. DECLARATION OF RESULT. If the proposition carries

at the election, the commissioners court shall enter the

following declaration in its minutes:

"Commissioners Court of __________ County, Texas, __________ term

A.D. ______: In the matter of the petition of __________ and

__________ others requesting the establishment of a navigation

district and the issuance of bonds and the levy of taxes in the

petition described and designated by the name of __________

Navigation District. Be it known that at an election called for

that purpose in the district, held on the ______ day of

__________ A.D. ______, a two-thirds majority of the electors

voting on the proposition voted in favor of the creation of the

navigation district, and the issuance of bonds and the levy of a

tax. Now, therefore, it is considered and ordered by the court

that the navigation district be and the same is hereby

established by the name of __________ Navigation District, and

that the bonds of the district in the amount of $______ be

issued, and a tax of ______ cents on the $100 valuation or so

much thereof as may be necessary to be levied on all property

inside the navigation district sufficient in amount to pay the

interest on the bonds and provide a sinking fund to redeem them

at maturity, and that if the tax becomes insufficient for these

purposes, it shall be increased until it is sufficient. The metes

and bounds of the district shall be as follows: (Description of

metes and bounds.)"

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 61.071. APPOINTMENT OF COMMISSIONERS. After a district is

created, the commissioners court or the board, by majority vote,

shall biennially appoint three commissioners to the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.072. ORGANIZATION: QUORUM. The commission shall

organize by electing one of their number chairman and one

secretary. Two of the commissioners shall constitute a quorum,

and a concurrence of two shall be sufficient in all matters

relating to the business of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.073. QUALIFICATIONS. To be qualified for appointment as

a commissioner, a person must be a resident of the district, a

freehold property taxpayer, and a qualified elector of the

county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.074. TERM OF OFFICE, REMOVAL, AND SUCCESSION. (a) Each

commissioner shall hold office for four years and until his

successor has qualified, unless sooner removed by a majority vote

of the commissioners court or the board for malfeasance or

nonfeasance in office.

(b) All vacancies in the office of commissioner shall be filled

for the unexpired term in the manner provided for the original

appointment to the office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1983, 68th Leg., p. 5217, ch. 951, Sec. 13, eff.

Jan. 1, 1984.

Sec. 61.075. COMMISSIONER'S OATH. Each commissioner shall

subscribe an oath before the county judge of the county of

jurisdiction to discharge faithfully the duties of his office

without favor or partiality, and to render a true account of his

activities to the commissioners court or the board which

appointed him. The oath shall be filed by the clerk and preserved

as a part of the records of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.076. COMMISSIONER'S BOND. Each commissioner shall

execute a good bond for $1,000, payable to the county judge for

the use and benefit of the district and conditioned on the

faithful performance of his duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.077. COMMISSIONERS' COMPENSATION. The commissioners are

entitled to receive for their services compensation fixed by the

commissioners court and entered in the record.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.078. DISTRICT TREASURER. The county treasurer of the

county of jurisdiction shall be treasurer of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.079. DISTRICT TREASURER'S BOND. (a) Before receiving

the proceeds of any district bonds and before receiving any

district funds from any source, the district treasurer shall

execute a good and sufficient bond payable to the commission for

the benefit of the district. The bond shall be in an amount fixed

and approved by the commission.

(b) The bond shall be conditioned on the district treasurer's

faithfully executing the duties of his office, paying over all

money that comes into his hands as the treasurer, and rendering a

just account to the commissioners court or the commission when

required to do so.

(c) The bond required by this section shall remain in full force

and effect as long as any funds belonging to the district are in

the possession or under the control of the treasurer.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.080. DISTRICT TREASURER'S COMPENSATION. The district

treasurer shall be entitled to receive for his services an amount

fixed by the commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.081. DUTIES IMPOSED WITHOUT COMPENSATION. The duties

and powers conferred on county, city and other officers under

this chapter are a part of the legal duty of the officers which

they shall perform without additional compensation, unless

otherwise provided in this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.082. COURT ACTIONS. (a) The district, by and through

its commission, may sue and be sued in any court in this state in

the name of the district.

(b) The courts of this state shall take judicial notice of the

establishment of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 61.111. PURPOSES OF DISTRICT. A district may:

(1) improve rivers, bays, creeks, streams, and canals inside or

adjacent to the district;

(2) construct and maintain canals and waterways to permit or aid

navigation; and

(3) issue bonds to pay for these improvements.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.112. EMPLOYEES AND COUNSEL. (a) The commission may

employ assistant engineers and other employees which are

necessary and may determine their compensation.

(b) The commission may retain counsel to represent the district

in the preparation of contracts or in the conduct of any

proceedings in or out of court and to be the legal advisor of the

commission on terms and for fees agreed on by the parties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.113. AUTHORITY TO GO ON LAND. The commissioners and

engineers, together with all necessary teams, help, tools and

instruments, may go on any land located inside the district for

the purpose of examining the land and making plans, surveys,

maps, and profiles, without subjecting themselves to the laws of

trespass.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.114. PENALTY FOR PROHIBITING ENTRY TO LAND. Any person

who wilfully prevents or prohibits any officer listed in Section

61.113 of this code from entering land for the purposes stated in

that section on conviction shall be punished by a fine of not

more than $25 a day for each day he prevents or prohibits the

officer from entering the land.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.115. ACQUISITION OF PROPERTY. The commission may

acquire by gift, grant, purchase, or condemnation any necessary

rights-of-way and property for necessary improvements

contemplated by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.116. LEASE OF STATE OWNED LANDS AND FLATS. (a) Any

district organized under this chapter or any special law or any

general law under which navigation districts may be created may

apply for a lease from the State of Texas of the surface estate

of any lands and flats belonging to the state which are covered

or partly covered by the water of any of the bays or other arms

of the sea; however, any navigation district created after the

effective date of this Act may not lease the surface estate of

any such lands or flats which are located within 10 miles of the

boundary of any navigation district in existence on the effective

date of this Act, without first receiving the written approval of

the district now in existence. The words "navigation district,"

"district," or "districts" as used in Sections 61.116, 61.117,

and 60.038 of the Texas Water Code shall apply to any

incorporated city in this state which owns and operates wharves,

docks, and other marine port facilities.

(b) The state, through the School Land Board, may lease these

state owned lands or flats to eligible navigation districts only

for purposes reasonably related to the promotion of navigation.

The term "navigation" as used herein refers to marine commerce

and immediately related activities, including but not limited to

port development; channel construction and maintenance;

commercial and sport fishing; recreational boating; industrial

site locations; transportation, shipping, and storage facilities;

pollution abatement facilities; and all other activities

necessary or appropriate to the promotion of marine commerce; but

specifically does not refer to residential development.

(c) In making application for a lease of state owned lands or

flats, the district shall include the following information:

(1) a description of the lands or flats sought to be leased;

(2) a plan showing how it proposes to utilize the land and a

timetable indicating approximately when such utilization will

take place;

(3) a draft environmental impact statement assessing the effect

of the proposed use on the environment, which statement shall

generally conform to the requirements of the National

Environmental Policy Act, until such time as the legislature

shall impose different requirements; however, a draft

environmental impact statement shall not be required if the

proposed use requires no dredging, filling, or bulkheading. If

the proposed use does require dredging, filling, or bulkheading,

but the lease shall be processed as provided in Subsections (d),

(e), and (f) of this section without the filing of a draft

environmental impact statement if the applicant so requests in

writing; but in such a case, the School Land Board shall include

in the lease provisions requiring (i) that the draft

environmental impact statement required by federal law be filed

with the School Land Board before the district makes any use of

such lands or flats which requires dredging, filling, or

bulkheading; (ii) that approval of such use be obtained from the

School Land Board after copies of the summary of the draft

environmental impact statement and a description of the proposed

use are circulated for comment and a hearing held as provided in

Subsections (d) and (e) of this section and the School Land Board

shall be authorized to give its approval to make such amendments

to the lease as may then be deemed necessary by it as a result of

information developed in the draft environmental impact

statement; and (iii) that the lease shall cease to be effective

at a time specifically stated in the lease unless prior to that

time accord concerning environmental issues has been reached

between the district and the School Land Board;

(4) proof satisfactory to the board establishing the public

convenience and necessity for acquisition of lands sought to be

leased.

(d) Upon receipt of an application and accompanying information,

the School Land Board shall submit copies thereof to the member

agencies of the Interagency Council on Natural Resources and the

Environment and all other appropriate state agencies for review

and comment. In addition, the board shall submit for review and

comment the proposed terms and conditions of the lease. The board

shall allow 30 days for such review and comment, and may extend

the review period for an additional 30 days upon written request

by the executive director of any state agency.

(e) Following the expiration of the period provided for review

and comment, or following the expiration of the 30 day extension

of such period, if applicable, the School Land Board shall cause

a hearing to be held in the county in which the land proposed to

be leased is located. Notice of the hearing shall be given by

publication for at least three days, not less than two weeks nor

more than four weeks prior to the hearing, in the daily paper

having the greatest circulation in the county. Members of the

board or their designated representatives shall conduct the

hearing, at which any party may offer testimony in support of or

in opposition to the application, and the board shall consider

the record of the hearing in making a decision on the

application.

(f) After submission of all evidence, the School Land Board

shall authorize the issuance or denial of the proposed lease and

shall determine the reasonable cost to the district, term of

years, special limitations, if any, and other conditions

necessary to best serve the interest of the general public. In

establishing the consideration to be paid to the state for the

lease, due weight shall be given to the depth of the water over

the submerged land, its proximity to development activities, and

its proposed use. Final action shall be taken by the board no

more than 60 days following the public hearing.

(g) The funds derived from the lease shall be paid to the

General Land Office for transfer to the proper funds of the

state.

(h) Districts may sublease lands leased from the state under the

provisions of this section to third parties for activities

reasonably related to navigation, but such sublease shall be

subject to the approval of the School Land Board according to the

procedures, requirements, and criteria set forth in Subsections

(c) and (d) of Section 61.116 of this code; provided, however,

that no approval by the School Land Board shall be required if

the sublease is for a purpose contemplated by the district and

approved by the board in the district's original lease. It is

further provided that no environmental impact statement shall

ever be necessary for any sublease which requires no dredging,

filling, or bulkheading, and which would not have a substantial

impact upon the environment, or which requires only insubstantial

dredging, filling, or bulkheading, as determined by the board;

nor shall a district in obtaining approval for a sublease under

any circumstances be required to reveal the name of the tenant to

whom the sublease is to be made.

(i) If lands or flats leased from the state under the provisions

of this section are utilized by the district or its sublessee for

any purpose or use not approved by the School Land Board, the

district shall be given notice and an opportunity to change and

correct the use. If the use is not changed and corrected within a

reasonable time after receipt of such notice, the lease may be

terminated by the School Land Board and the lands or flats shall

revert to the State of Texas.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 553, ch. 237, Sec. 1, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 801, ch. 310, Sec. 2,

eff. May 27, 1975.

Sec. 61.117. LIMITATIONS ON SALES AND USE OF STATE LANDS AND

FLATS. (a) The State of Texas shall retain its rights in all

mines and minerals, including oil, gas, and geothermal resources,

in and under the land, together with the right to enter the land

for the purpose of development when it leases land under Section

61.116 of this code.

(b) All leases of land under Section 61.116 are subject to oil,

gas, or mineral leases in existence at the time of the lease to

the district.

(c) Any land which has been franchised or leased or is being

used by any navigation district or by the United States for the

purpose of navigation, industry, or other purpose incident to the

operation of a port shall not be entered or possessed by the

State of Texas or by anyone claiming under the State of Texas for

the purpose of exploring for oil, gas, or other minerals except

by directional drilling. No easement, lease, or permit may be

granted on land which has been leased to a navigation district

which will interfere with the proposed use of the land by the

navigation district, and the prior approval of the navigation

district shall be obtained for such purpose.

(d) No surface drilling location may be nearer than 660 feet and

special permission from the Commissioner of the General Land

Office is necessary to make any surface location nearer than

2,160 feet, measured at right angles from the nearest bulkhead

line designated by a navigation district or the United States as

the bulkhead line or from the nearest dredged bottom edge of any

channel, slip, or turning basin which has been dredged, or which

has been authorized by the United States as a federal project for

future construction, whichever is nearer.

(e) In the event land is leased to a navigation district for

construction of a navigation project, the School Land Board may

in the lease designate the district to be the agent of the State

of Texas with authority to grant to the United States of America

such easements for dredging and disposal of dredged material as

may be required for federal participation in the project. In

designating the district to be the agent of the State of Texas

for the purpose of granting spoil easements, the board may

include a requirement that the district obtain the approval of

the board before granting any such easement. Such approval may be

given in the form of accepting a master plan for spoil disposal.

(f) Districts which, prior to the enactment of this provision,

have obtained patents to state owned lands or flats under Article

8225, Revised Civil Statutes of Texas, 1925, or under any general

or special act, and which still claim title to any such lands or

flats, may not hereafter dispose of any such lands or flats which

were conveyed to them by the State of Texas and may not lease

such lands or flats for a use for which districts are not

authorized to lease their other lands; however, in the event a

district possesses lands it finds to be in excess of its needs,

it may sell such surplus lands or flats back to the State of

Texas for the same consideration as originally paid to the state

or exchange them for other lands with the State of Texas. It is

further provided that the limitation on resale of lands or flats

acquired from the State of Texas shall not prevent a district

from exchanging such lands or flats for land, or rights in land,

of an adjacent littoral owner for the purpose of adjusting or

straightening the boundary between such lands. All such exchanges

made after December 31, 1973, shall be subject to the approval of

the School Land Board.

(g) Any district which, prior to the effective date of this Act

has maintained, and which at the effective date of this Act is

maintaining, any channel, dredged material disposal site, or

other navigational aid or improvement on state owned lands to

which the district holds no patent or lease from the state shall

notify the General Land Office of the boundaries of such

submerged land used by furnishing a map or other drawing

acceptable to the General Land Office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1973, 63rd Leg., p. 555, ch. 237, Sec. 2, eff.

June 11, 1973; Acts 1975, 64th Leg., p. 803, ch. 310, Sec. 3,

eff. May 27, 1975.

Sec. 61.118. CONSTRUCTION CONTRACTS. (a) Except as provided in

this section, the provisions of Chapter 3, Title 128, Revised

Civil Statutes of Texas, 1925, governing water control and

preservation districts which relate to advertising for, awarding,

and performing contracts for the construction of improvements and

work authorized by law shall apply to construction contracts made

under this subchapter.

(b) The bidder's deposit for a construction contract shall be

five percent of the amount bid, and the contractor's bond shall

be for not less than 25 percent of the contract price.

(c) The contract shall be signed by at least two of the

commissioners, and the partial payments made under the contract

shall not be more than 90 percent of the contract price.

(d) In case of public calamity or extreme emergency which makes

it necessary to act at once to preserve the property of the

district and its residents or in case of unforeseen damage to the

property or equipment of the district, the provisions of this

section requiring advertisement for bids under Article 7853,

Revised Civil Statutes of Texas, 1925, may be waived. In any of

these situations, the commission shall record in the minutes of

the district that an emergency exists and the facts which gave

rise to the emergency.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.119. INTEREST IN CONTRACT OF NAVIGATION DISTRICT. If

the county judge, a county commissioner, a member of the board or

the commission, or the engineer shall directly or indirectly

become interested in a contract for work to be done by the

district or in any fee paid by the district, which would allow

him to receive any money consideration or other thing of value

except in payment of services as provided by law, on conviction

he shall be confined in jail for not less than six months nor

more than one year.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.120. LAWS GOVERNING CERTAIN FUNCTIONS OF DISTRICT.

Chapter 3, Title 128, Revised Civil Statutes of Texas, 1925,

relating to eminent domain, employment and duties of the district

engineer, cooperation with the federal government, and the

director's annual report shall apply to this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER E. PORT FACILITIES

Sec. 61.151. AUTHORITY TO OPERATE AND DEVELOP PORT FACILITIES.

(a) A district created for the development of deep-water

navigation which includes a city with a population of more than

100,000, according to the last preceding federal census, may

operate and develop ports and waterways inside the district and

extending to the Gulf of Mexico.

(b) The district may acquire, purchase, take over, construct,

maintain, operate, develop, and regulate wharves, docks,

warehouses, grain elevators, bunkering facilities, belt

railroads, floating plants, lighterage, land, towing facilities,

and other facilities or aids incident to or necessary to the

operation or development of ports and waterways.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.152. PETITION. (a) If the board decides to exercise

the rights, powers, and authority provided in this subchapter, it

shall certify this desire to the commissioners court and shall

submit a petition requesting that an election be held.

(b) The commissioners court shall schedule a hearing on the

petition not less than 30 nor more than 60 days after the date of

the petition. The hearing may be held at any place designated by

the commissioners court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.153. HEARING: TESTIMONY. Any person who may be affected

may appear before the board on the day of the hearing and contest

the necessity, advisability, or practicability of the election

and may offer testimony in favor of or against the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.154. ELECTION ORDER. After the hearing, if the board

determines that the election should be held, the commissioners

court shall order an election to determine whether or not the

district should adopt the rights, powers, and authority provided

in this subchapter. The order shall include the date on which the

election will be held.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.155. BALLOTS. The ballots for the election shall be

printed to provide for voting for or against the following

proposition: "The development of the port by the navigation

district."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.156. ELECTION EXPENSE. The district shall pay the

expense of the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.157. DECLARATION OF RESULTS. If the result of the

election favors the development of a port by the district, the

commissioners court shall declare the result and shall enter in

the minutes of the commissioners court the following declaration:

"Commissioners Court __________ County, Texas, __________ term

A.D. __________, in the matter of the petition of the navigation

board, requesting that the right, power, and authority be granted

to the navigation district to develop the port of __________

(enter the name of the municipality). Be It Known, that at an

election called for that purpose in the district, held on the

__________ day of __________ A.D. __________, a two-thirds

majority of the electors voting on the proposition voted to

develop port facilities.

"Now, Therefore, It is considered and ordered by the

commissioners court that the district is authorized to proceed

with the development of the port as authorized by law."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.158. APPOINTMENT OF COMMISSIONERS. (a) If the

provisions of this subchapter are adopted by a district, the

district shall be managed, governed, and controlled by a

commission composed of five commissioners, who shall be subject

to the supervision and control of the board.

(b) Two of the commissioners shall be appointed by a majority of

the city council of the municipality having a population of

100,000 or more, and two of the commissioners shall be appointed

by a majority of the commissioners court.

(c) The chairman of the commission shall be the fifth member and

shall be elected by majority vote of the city council and

commissioners court meeting in joint session called by the county

judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.159. TERM OF OFFICE: REMOVAL: SUCCESSION. (a) Except

for the original appointments, each commissioner shall serve for

a term of two years and until his successor is qualified.

(b) One of the original appointees of the city council and one

of the commissioners court shall serve for one year. The other

original appointees shall serve for two years.

(c) Each commissioner shall serve his full term unless removed

by the authority which appointed him. He may be removed for

malfeasance, nonfeasance in office, inefficiency, or other

sufficient cause.

(d) If a vacancy occurs through death, resignation, or other

reason, the vacancy shall be filled in the manner provided for

making the original appointment.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.160. QUALIFICATIONS; COMPENSATION; AUTHORITY. (a) Each

commissioner shall be a freehold property taxpayer and a

qualified elector in the district.

(b) Each commissioner shall execute a bond and shall subscribe

the required oath.

(c) Each commissioner is entitled to receive the compensation

provided by the board.

(d) A majority of the commissioners shall have the authority to

act, and all acts of the commission are subject to the

supervision of the board.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.161. EMINENT DOMAIN. (a) The district may exercise the

power of eminent domain.

(b) A district created under this chapter may elect to take

advantage of the condemnation procedure provided in Subchapter F

of Chapter 51 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.162. LEASE AND RENTAL OF FACILITIES. A district may

acquire and take over, by lease or rental agreements, for a

period of not less than 25 years, the docks, wharves, buildings,

railroads, land, improvements, and other facilities already

provided, constructed, or owned by any incorporated municipality

situated within the district only with the consent of the lawful

authorities of the municipality and on terms mutually agreed on

by the district and the municipality.

(1) No agreement for the use, acquisition, or operation of the

property or facilities of the municipality by the district shall

be for a lease or rental value which is more than the annual net

revenue derived or to be derived by the district after payment of

the expenses of operation and maintenance of the property and

facilities.

(2) The district shall have no supervision or control over the

property or facilities owned, controlled, or constructed by the

municipality until agreement for the lease and rental of the

property by the district has been made.

(3) A district that is leasing land or facilities from a

municipality may purchase or acquire the property in the manner

provided in this subchapter.

(4) The commission and the officials of the municipality shall

be authorized to enter into an agreement stating the land and

facilities to be acquired, the amount agreed on as the purchase

price, and the terms of the sale.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.163. UNIMPROVED LAND. (a) A district which acquires,

leases, or takes over unimproved land owned or controlled by any

incorporated municipality, may pay for the use, rental, or hire

of the land a price or rental value to be fixed by the

commission.

(b) If the commission fails or is unable to agree on terms and

conditions for the use and rental of the unimproved land, then

the district, through the power of eminent domain, may condemn

the land or parts of the land which it thinks the interest of the

district requires.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.164. FRANCHISES. (a) The district may grant franchises

to persons or corporations on property owned or controlled by the

district if the franchises are granted for purposes consistent

with the provisions of this subchapter.

(b) No franchise shall be granted for longer than 30 years nor

shall a franchise be granted except on the affirmative vote of a

majority of the commissioners at three separate meetings of the

commission which meetings may not be closer together than one

week.

(c) No franchise shall be granted until after the franchise in

its final form is published in full at the expense of the

applicant, once a week for three consecutive weeks in a daily

newspaper of general circulation published inside the district.

(d) The franchise shall require the grantee to file his or their

written acceptance within 30 days after the franchise is finally

approved.

(e) Nothing in this section shall be construed as preventing the

district from granting revocable licenses or permits for the use

of limited portions of waterfront or facilities for purposes

consistent with this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1971, 62nd Leg., p. 1770, ch. 518, Sec. 15, eff.

May 13, 1971.

Sec. 61.165. FRANCHISE ELECTION. If the commission determines

that a proposed franchise should be submitted to a vote of the

people, it shall so certify to the commissioners court, and the

commissioners court shall order an election on the matter at the

earliest legal time.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.166. BALLOTS. (a) The ballot shall explain the nature

of the franchise sufficiently to identify it.

(b) The ballots shall be printed to provide for voting for or

against the following proposition: "The franchise."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.167. ELECTION RESULT. If at the election a majority of

those voting approve the franchise, it shall be granted. If those

voting do not approve the franchise, it shall have no force and

effect.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.168. PETITION PROTESTING FRANCHISE. The franchise may

be suspended from taking effect if, before the date when the

franchise is granted, a petition signed by qualified voters of

the district equal to 10 percent of the total vote cast in the

last general election for state officers is presented to the

commissioners court protesting the enactment or granting of the

franchise. Immediately after the petition is filed, the

commissioners court shall order an election on the proposed

franchise. The election shall be governed by the provisions of

Sections 61.164 and 61.165.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.169. CONTRACTS. The provisions governing the award of

contracts by districts shall apply in all cases consistent with

the provisions of this subchapter except that in case of

emergency contracts may be let by the commission for not more

than $5,000 without advertisement for bids. In case of urgent

necessity or present calamity, advertisement for bids may be

waived.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1977, 65th Leg., p. 804, ch. 299, Sec. 1, eff.

Aug. 29, 1977.

Sec. 61.170. AUTHORITY TO INCUR DEBT. (a) The district may

issue bonds for the purposes stated in Section 61.151 of this

code and for the purpose of

(1) acquiring necessary land, rights-of-way, or dumping grounds;

(2) extension or improvement of belt railway lines; or

(3) construction of improvements, wharves, docks, or other

facilities or aids to navigation.

(b) The obligations may be secured by liens on the property

acquired, constructed, or improved. Available revenue may be

pledged as additional security.

(c) The district may borrow funds for current expenses and may

evidence the debt by warrants payable not later than the close of

any calendar year for which the loans are made. The warrants

shall never exceed the anticipated revenue.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.171. BONDS. (a) On compliance with the provisions of

this subchapter the district may issue bonds to pay for the

improvements and facilities and to acquire the property

authorized in this subchapter.

(b) The district also may issue bonds to purchase wharves,

docks, warehouses, bunkering facilities, belt railroads, land to

be used for port purposes and development, or other facilities

constructed or owned by the municipality.

(c) An election shall be held to approve the issuance of the

bonds, and the bonds shall be issued in the manner provided by

this chapter for issuing other bonds.

(d) The outstanding bonds and the additional bonds may not

amount to more than 10 percent of the assessed value of real

property in the district as shown by the last annual assessment

made for the county and state.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.172. FINANCING PURCHASES. (a) The commission may have

issued in the manner provided in this chapter bonds of the

district in an amount that represents the purchase price of the

land or facilities less any outstanding bonds previously issued

by the municipality.

(b) The bonds shall be issued, registered, and sold in the same

manner as other bonds of the district, and the proceeds shall be

paid to the municipality.

(c) If the municipality has outstanding bonds, the district

shall assume payment of these bonds and interest, and the

commissioners court shall levy a tax sufficient to pay the

interest due and the principal due at the maturity of the bonds.

The taxes shall be collected as other taxes are now collected,

and payment shall be made to the city by the commission on or

before the due dates of interest and principal for the sole

purpose of paying the interest on and principal of the

outstanding bonds.

(d) The municipality shall not be released from any obligation

to the owners and holders of any outstanding bonds issued on

account of the land or facilities purchased.

(e) The municipality shall not levy, assess, and collect any tax

for interest and sinking fund unless the payment from the

district shall fail in whole or in part. In the event of such

failure, the municipality shall levy and collect the tax

necessary to discharge the interest and meet the principal of the

outstanding bonds and shall continue to do so until the amounts

are paid. Also, the municipality may collect any and all amounts

paid on account of the district from the district and in event of

the continued failure to make the payments by the district, the

municipality may take back the facilities.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.173. ELECTION ON THE PURCHASE OF FACILITIES. (a) No

bonds shall be issued or tax levied until the question of

purchase of the facilities is submitted to a vote of the people

in the district.

(b) In addition to the requirement for submitting bonds to a

vote, the notice of election shall include:

(1) a copy of the agreement;

(2) the amount of outstanding bonds;

(3) the amount of bonds sought to be issued by the district; and

(4) the amount of taxes required to be levied.

(c) The election shall be called and held in the same manner as

other elections for bonds, and the ballots shall provide for

voting for or against the proposition: "The purchase of municipal

facilities and the issuance of bonds and levy of a tax to pay for

the bonds."

(d) If the election should carry by a two-thirds vote of the

electors voting at the election, then the proposition shall be

declared carried and the bonds shall be issued and sold, and the

necessary taxes levied in accordance with the provisions of this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.174. EMPLOYEES; COUNTY AUDITOR, DUTIES AND COMPENSATION.

(a) The commission may employ all persons necessary for the

construction, maintenance, operation, and development of the

business and facilities of the district and may prescribe their

duties and fix their compensation.

(b) The county auditor, as auditor for the district having large

port facilities, shall make such additional reports and perform

such accounting services in addition to those now required by law

as may be reasonably incident to the proper conduct of the

business of the district.

(c) Compensation for the county auditor who shall act under this

section shall be determined by the judge of the district court or

courts having jurisdiction in the county after a hearing with

respect to the amount and value of the services performed. The

amount shall be paid monthly from funds of the navigation

district, and the maximum amount which may be allowed by the

district judge for the services shall not be more than the amount

now being paid.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.175. POWERS. (a) A district operating under this

subchapter shall have all the rights, powers, and authority

granted by this chapter and shall have all the authority granted

by general or special law to navigation districts.

(b) A district operating under this subchapter shall also have

the fullest powers consistent with the state constitution for the

regulation of wharfage and of all facilities relating to the

port, waterways, and district.

(c) The district may assess and collect charges for the use of

all facilities acquired or constructed in accordance with the

provisions of this subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.176. CITY POLICE POWERS. Nothing in this subchapter

shall repeal or affect the police powers of any municipality

inside the district, or any law, ordinance, or regulation

authorizing and empowering the municipality to exercise the

powers relating to any navigable stream or aids to navigation and

facilities in a navigation district, not in conflict with this

subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER F. GENERAL FISCAL PROVISIONS

Sec. 61.211. MAINTENANCE FUND. (a) After the district is

created all expenses necessarily incurred after the petition was

filed in connection with the creation, establishment, and

maintenance of the district shall be paid out of the construction

and maintenance fund of the district.

(b) The fund shall consist of all money received from the sale

of bonds and all other amounts received by the district from any

source, except tax collections applied to the sinking fund and

payment of interest on the navigation bonds.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.212. DISTRICT DEPOSITORY. The commission shall select a

depository for the district as provided by Section 60.271.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 1400, Sec. 2, eff. Sept. 1,

1997.

SUBCHAPTER G. BOND AND TAX PROVISIONS

Sec. 61.231. ISSUANCE OF BONDS. When the commission determines

the cost of the proposed improvements, the expenses incident to

the improvements, and the cost of maintenance of the

improvements, it shall certify to the commissioners court the

amount of bonds necessary to be issued. The commissioners court,

at a regular or special meeting, shall issue an order directing

the issuance of bonds for the district in the amount certified

which shall not be more than the amount authorized by the

election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.232. LIMITATION ON BOND ISSUE. Outstanding bonds and

additional bonds which are authorized may not be more than

one-fourth of the assessed value of the real property in the

district, as shown by the last tax roll for the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.233. REQUISITES OF BONDS. (a) All bonds issued under

the provisions of this subchapter shall be issued in the name of

the district, signed by the county judge, and attested by the

county clerk under the seal of the commissioners court.

(b) The bonds shall be issued in such denominations and payable

at such time or times, not more than 40 years from their date, as

the commissioners court considers expedient.

(c) All provisions of Chapter 57 of this code governing the

approval, registration, and validity of bonds of levee

improvement districts shall apply to bonds issued under this

subchapter.

(d) The commissioners court or the board shall require a record

to be kept of the bonds by the district treasurer the same as for

bonds of levee improvement districts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.234. SALE OF BONDS. (a) After the bonds are

registered, the chairman of the commission shall offer them for

sale and shall sell the bonds for the best price possible.

(b) Money received from the sale of the bonds shall be paid

immediately to the district treasurer, and he shall deposit it to

the credit of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.235. CHAIRMAN'S BOND. Before the chairman of the

commission may sell the bonds, he shall execute a good bond,

payable to the county judge and his successors, in an amount

fixed by the commission, conditioned on the faithful discharge of

his duties. The bond shall be approved by the county judge.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.236. TAX LEVY. (a) When bonds have been approved, the

commissioners court annually shall levy and have assessed and

collected improvement taxes sufficient to pay the interest on the

bonds and to provide a sinking fund to redeem the bonds at

maturity.

(b) The commissioners court shall also at the time of the levy

of taxes for county purposes, levy and have assessed and

collected for the maintenance, operation, and upkeep of the

district and its improvements an annual tax of not more than 10

cents on each $100 valuation.

(c) The commission shall determine a rate within the 10-cent

limit as the necessary amount for the maintenance, operation, and

upkeep of the district and its improvements. The rate shall be

certified to the commissioners court by the commission.

(d) Taxes shall be levied on all property inside the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.237. ASSESSMENT AND COLLECTION OF TAXES. The tax

assessor and collector of each county in the district shall

assess and collect district taxes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 61.238. ADDITIONAL BOND ISSUE. (a) If the proceeds of the

original bonds are insufficient to complete the proposed

improvements or construction, or if the commission decides to

undertake further construction or improvements or requires

additional funds with which to maintain the existing

improvements, it shall certify to the commissioners court the

necessity for an additional bond issue, stating:

(1) the amount required;

(2) the purpose of the additional bonds;

(3) the rate of interest on the bonds; and

(4) the term of the bonds.

(b) The commissioners court, on receipt of this information,

shall issue the bonds, unless the amount previously authorized

has been exhausted, in which case the commissioners court shall

first order an election on the issuance of the bonds to be held

inside the district at the earliest possible legal time.

(c) The ballots for the issuance of additional bonds shall be

printed to provide for voting for or against the proposition:

"The issuance of bonds and the levy of a tax to pay for the

bonds."

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 61.239. SINKING FUND INVESTMENTS. The commissioners court

may invest the sinking fund in county, municipal, district, or

other bonds approved by the attorney general.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.