Invisible Government: Special Purpose Districts in Texas - Senate

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SPOTLIGHT
as temporary directors. The temporary directors will
then organize a confirmation election for approval of
the creation of the district, the temporary directors, and
the issuance of bonds. The district is authorized to issue
bonds and impose ad valorem taxes to provide for the
payment of principal and interest on the bonds.
After the district has completed each construction,
acquisition, and improvement of a road facility
provided in the approved plan and all bonds and other
indebtedness are paid in full, the district is required to
convey the road facility to a municipality, a county,
or the Texas Department of Transportation. Once
those conditions are met, the Texas Transportation
Commission will approve a petition for dissolution
from the district after which the district ceases to exist
as a governmental entity.
ffNavigation Districts
Navigation districts generally provide for the
construction and improvement of waterways in Texas
for the purpose of navigation. The creation of navigation
districts is authorized in two different articles in the
Texas Constitution to serve different purposes. Section
52, Article III, Texas Constitution, authorizes counties,
cities, and other political corporations or subdivisions to
issue bonds and levy taxes for the purposes of improving
rivers, bays, creeks, streams, and canals to prevent
overflow, to provide irrigation, and to permit navigation.
Section 59, Article XVI, Texas Constitution, authorizes
the creation of conservation and reclamation districts
for the purpose of conserving and developing natural
resources, including the improvement, preservation, and
conservation of inland and coastal water for navigation
and controlling storm water and floodwater of rivers and
streams in aid of navigation. This section authorizes
Special Purpose Districts
conservation and reclamation districts to issue bonds
and levy taxes for those purposes. Generally, however,
navigation districts are structured, governed, and
financed in the same manner.
Chapters 60 through 63, Water Code, set forth provisions
relating to navigation districts. Chapter 61 (Article III,
Section 52, Navigation Districts) authorizes the creation
of districts to operate under Section 52, Article III,
Texas Constitution. Chapter 62 (Article XVI, Section
59, Navigation Districts) authorizes the creation of
navigation districts under Section 59, Article XVI, Texas
Constitution. Chapter 60 (Navigation Districts--General
Provisions) sets forth provisions relating to both types
of districts. Chapter 63 (Self-Liquidating Navigation
Districts) applies to Article XVI, Section 59, Navigation
Districts that have bonds that were approved but never
issued. Self-liquidating districts are self-liquidating in
character and may become self-supporting through the
implementation of tolls, rents, fees, assessments, or other
charges other than taxation to pay for construction costs.
Generally, navigation districts are created upon petition
submitted to the commissioners court of a county, signed
by 25 of the resident property taxpayers in the proposed
district. The commissioners court then sets a date for
a hearing to hear testimony from affected persons and
to determine whether the proposed improvements are
feasible and practicable and would be a public benefit
and utility. If the commissioners court approves the
creation of the district, the commissioners court is
required to hold an election to vote on the proposition.
For the creation of a district authorized under Section
52, Article III, Texas Constitution, a two-thirds vote is
necessary to carry a proposition submitted at an election.
However, for the creation of a district authorized under
Section 59, Article XVI, Texas Constitution, only a
majority vote is necessary. After a district is created,
the commissioners court appoints three members to a
navigation and canal commission.
Navigation districts have the authority to issue bonds
and levy taxes that are deposited into a sinking fund for
the reimbursement of the bonds. These districts are also
authorized to exercise the power of eminent domain.
The Water Code sets forth certain provisions regarding
the annexation of adjacent territory, the authority to
operate port facilities, the conversion of districts, and
cooperation with the United States.
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