0001|                           SENATE BILL 154
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                           MANNY M. ARAGON
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO FLOOD CONTROL AND DRAINAGE; ENACTING THE FLOOD
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0012|     CONTROL AND DRAINAGE IMPROVEMENT DISTRICT ACT; AUTHORIZING
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0013|     CERTAIN FLOOD CONTROL AUTHORITIES TO RAISE REVENUES FOR
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0014|     IMPROVEMENTS BY AN ASSESSMENT LEVY ON IMPROVED LANDS.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  SHORT TITLE.--This act may be cited as the
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0018|     "Flood Control and Drainage Improvement District Act".
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0019|          Section 2.  IMPROVEMENT DISTRICT--DEFINITIONS.--As used
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0020|     in the Flood Control and Drainage Improvement District Act:
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0021|               A.  "adjustment of assessment" means the adjustment
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0022|     in the estimated maximum benefit or assessment resulting from
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0023|     the division of the property to be assessed or assessed into
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0024|     smaller tracts or parcels or the combining of smaller parcels
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0025|     into one or more larger parcels or the changing of the
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0001|     configuration or legal description of such parcels. 
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0002|     "Adjustment of assessment" may also include the real location
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0003|     of the assessment lien, without loss of priority, among
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0004|     parcels under single ownership that are subject to the
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0005|     assessment lien in order to permit the removal of the lien
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0006|     from one or more parcels where adequate security for the lien
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0007|     is demonstrated by the assessed parcels under such single
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0008|     ownership or provided by the owner;
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0009|               B.  "authority" means a flood control authority
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0010|     created pursuant to Chapter 72, Articles 16 and 19 NMSA 1978;
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0011|               C.  "board" means the board of directors of the
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0012|     authority;
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0013|               D.  "construct" or "construction" means to plan,
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0014|     design, engineer, construct, reconstruct, install, extend,
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0015|     better, alter, build, rebuild, improve, purchase or otherwise
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0016|     acquire any project authorized in the Flood Control and
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0017|     Drainage Improvement District Act;
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0018|               E.  "engineer" means any person who is a
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0019|     professional engineer licensed to practice in New Mexico and
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0020|     who is a permanent employee of an authority or employed by an
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0021|     authority in connection with an improvement;
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0022|               F.  "improvement" means any one or any combination
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0023|     of projects in one or more locations authorized in the Flood
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0024|     Control and Drainage Improvement District Act; 
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0025|               G.  "improvement district" means one or more
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0001|     locations wherein the improvement is to be constructed and one
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0002|     or more tracts or parcels of land to be assessed for the cost
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0003|     of the improvement; and
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0004|               H.  "premature subdivision" means a subdivision
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0005|     that has been platted and sold into multiple private ownership
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0006|     prior to installation or financial guarantee of all required
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0007|     improvements for land development.  Such subdivisions contain
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0008|     one or more of the following developmental inadequacies under
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0009|     current local government standards and requirements:
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0010|                    (1)  a lack of drainage easements of right-of-
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0011|     way;
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0012|                    (2)  a lack of an overall grading and drainage
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0013|     plan; or
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0014|                    (3)  a lack of adequate subdivision grading
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0015|     both on and off the public right-of-way.
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0016|          Section 3.  IMPROVEMENT DISTRICT--AUTHORIZATION--
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0017|     LIMITATION.--
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0018|               A.  Whenever the board determines that the creation
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0019|     of an improvement district is necessary for the public safety,
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0020|     health or welfare, the board may create an improvement
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0021|     district for any one or any combination of projects authorized
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0022|     in the Flood Control and Drainage Improvement District Act by
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0023|     the:
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0024|                    (1)  provisional order method; or
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0025|                    (2)  petition method.
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0001|               B.  The board may adopt any resolution necessary or
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0002|     proper to accomplish the purposes of the Flood Control and
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0003|     Drainage Improvement District Act.
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0004|               C.  The improvement district shall include for the
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0005|     purpose of assessment all the property that the board
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0006|     determines is benefited by the improvement authorized by the
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0007|     Flood Control and Drainage Improvement District Act, including
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0008|     property utilized for public, governmental, charitable or
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0009|     religious purposes, except that of the United States or any
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0010|     agency, instrumentality or corporation thereof in the absence
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0011|     of a consent of congress, but shall not include any property
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0012|     within the exterior boundaries of a municipality except as
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0013|     provided in Section 6 of that act.
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0014|          Section 4.  IMPROVEMENT DISTRICT--PURPOSE.--An
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0015|     improvement district may be created as authorized in the Flood
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0016|     Control and Drainage Improvement District Act in order to
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0017|     construct, acquire, repair or maintain in one or more
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0018|     locations any one or any combination of the following
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0019|     projects, including without limitation any right-of-way,
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0020|     easement or privilege appurtenant or related thereto:
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0021|               A.  a bridge, walkway or gutter project, including
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0022|     without limitation ramps and stairways, arches, support
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0023|     structures and pilings and the grading, regrading, surfacing,
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0024|     graveling, excavating, macadamizing, paving, repairing,
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0025|     laying, backfilling, leveling, lighting, landscaping,
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0001|     beautifying or in any manner improving of all or any part of
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0002|     one or more bridges, walkways, pathways, gutters or any
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0003|     combination of the foregoing;
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0004|               B.  any storm sewer project, including without
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0005|     limitation investigating, planning, constructing, acquiring,
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0006|     excavating, laying, leveling, backfilling or in any manner
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0007|     improving all or any part of one or more storm sewers, drains
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0008|     and property connections and acquiring or improving valves,
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0009|     catch basins, inlets, outlets, lift or pumping stations and
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0010|     machinery and equipment incidental thereto or any combination
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0011|     of the foregoing; or
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0012|               C.  a flood control or storm drainage project,
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0013|     including without limitation the investigation, planning,
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0014|     construction, improvement, replacement, repair or acquisition
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0015|     of dams, dikes, levees, ditches, canals, basins and
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0016|     appurtenances such as spillways, outlets, syphons and drop
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0017|     structures, channel construction, diversions, rectification
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0018|     and protection with appurtenant structures such as concrete
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0019|     linings, banks, revetments, culverts, inlets, bridges,
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0020|     transitions and drop structures, rundowns and retaining walls,
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0021|     storm sewers and related appurtenances such as inlets,
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0022|     outlets, manholes, catch basins, syphons and pumping stations,
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0023|     appliances, machinery and equipment and property rights
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0024|     connected therewith or incidental thereto convenient and
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0025|     necessary to control floods or to provide drainage and lessen
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0001|     their danger and damages.
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0002|          Section 5.  IMPROVEMENT DISTRICT--ADDITIONAL PURPOSE.--An
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0003|     improvement district may also be created as authorized in the
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0004|     Flood Control and Drainage Improvement District Act in order
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0005|     to construct, repair or maintain improvements in one or more
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0006|     locations or to construct, acquire, repair, operate or
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0007|     maintain one or more of the following items necessary to bring
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0008|     a premature subdivision into compliance within an improvement
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0009|     district within an authority:
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0010|               A.  drainage easements or rights of way;
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0011|               B.  overall grading and drainage plan; or
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0012|               C.  adequate subdivision grading either on or off
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0013|     the public right of way.
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0014|          Section 6.  IMPROVEMENT DISTRICT--POWERS OF AN
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0015|     AUTHORITY.--An authority shall have the power to construct
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0016|     improvements authorized by the Flood Control and Drainage
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0017|     Improvement District Act on any location within the boundaries
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0018|     of the authority or a municipality or county outside the
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0019|     authority's boundaries.  Improvements shall be constructed
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0020|     pursuant to the powers granted in the Flood Control and
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0021|     Drainage Improvement District Act only if the governing body
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0022|     of a municipality or the board of county commissioners of a
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0023|     county outside the boundaries of the authority in which such
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0024|     improvements are to be made has, by resolution submitted to
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0025|     the board of county commissioners of the county, determined:
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0001|               A.  that the construction of such improvements is
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0002|     in the best interests of the municipality or the county;
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0003|               B.  that the maximum amount of benefit estimated to
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0004|     be conferred on the tracts or parcels of land lying within the
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0005|     municipality or county is determined in the same manner as the
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0006|     maximum amount of benefit estimated to be conferred on the
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0007|     tracts or parcels of land lying within the authority; and
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0008|               C.  that the owners of real property representing
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0009|     at least fifty-one percent of the total assessed valuation of
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0010|     the property benefited, which lies within the municipality or
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0011|     county, have not objected in writing to such improvements
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0012|     within thirty days after having received written notice of the
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0013|     adoption of the provisional order described in Subsection E of
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0014|     Section 8 of the Flood Control and Drainage Improvement
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0015|     District Act by the board of county commissioners.  The
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0016|     authority may enter into a joint powers agreement with the
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0017|     governing body of the municipality or the board of county
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0018|     commissioners of the county to provide for joint
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0019|     administration of any such improvement district.
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0020|          Section 7.  IMPROVEMENT DISTRICT--LIMITATIONS ON POWERS
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0021|     OF AUTHORITY WITH RESPECT TO STREET OR RIGHT OF WAY UNDER
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0022|     JURISDICTION OF STATE HIGHWAY COMMISSION.--The authority shall
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0023|     not construct improvements on or through any street or right
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0024|     of way under the jurisdiction of the state highway commission
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0025|     unless it receives prior written approval from the state
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0001|     highway commission to undertake such improvements.
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0002|          Section 8.  IMPROVEMENT DISTRICT--PROVISIONAL ORDER
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0003|     METHOD--PROCEDURE--PRELIMINARY LIEN--NOTICE OF PENDENCY OF
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0004|     DISTRICT--EFFECT.--
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0005|               A.  Whenever the board determines that the creation
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0006|     of an improvement district is necessary by the provisional
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0007|     order method, the board shall by resolution direct the
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0008|     engineer to prepare preliminary plans and an estimate of cost
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0009|     for the proposed improvement district.
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0010|               B.  The resolution shall:
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0011|                    (1)  describe in general terms the property to
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0012|     be included in the improvement district; and
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0013|                    (2)  require the engineer to prepare:
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0014|                         (a)  an assessment plat showing the area
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0015|     to be included in the improvement district; and
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0016|                         (b)  an addendum to the assessment plat
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0017|     showing the amount of maximum benefit estimated to be assessed
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0018|     against each tract or parcel in the improvement district on a
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0019|     front-foot, zone, area or other equitable basis, which shall
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0020|     be set forth in the resolution; provided, if the benefit to a
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0021|     tract or parcel is derived from a combination of improvements,
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0022|     the amount of maximum benefit estimated to be assessed against
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0023|     such tract or parcel may be based upon an appraisal or
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0024|     determination of the value of the improvements as a whole; and
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0025|                    (3)  require the engineer to prepare
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0001|     preliminary plans for one or more types of construction
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0002|     showing:
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0003|                         (a)  for each type of storm sewer or
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0004|     drain, the type of material and approximate diameter of any
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0005|     trunk lines, mains, laterals or house connections; or
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0006|                         (b)  for each other type of project or
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0007|     other major component of the foregoing types of projects, a
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0008|     general description.
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0009|               C.  The engineer shall include in the total cost
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0010|     estimate for the improvement district all expenses, including
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0011|     but not limited to advertising, appraising, tax reimbursement,
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0012|     capital improvement, expansion, construction period interest,

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0013|     reserve fund, financing, engineering and printing expenses,
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0014|     which the engineer deems necessary to pay the complete cost of
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0015|     the improvement.
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0016|               D.  The engineer shall submit to the board the:
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0017|                    (1)  assessment plat;
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0018|                    (2)  preliminary plans of the type of
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0019|     construction; and
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0020|                    (3)  estimates of costs for the improvement.
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0021|               E.  After the board examines the assessment plat,
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0022|     preliminary plans and estimates of cost for the improvement
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0023|     district, the board may adopt a provisional order that:
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0024|                    (1)  orders the improvement to be constructed; 
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0025|                    (2)  instructs the engineer to give notice of
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0001|     a hearing on the provisional order; and
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0002|                    (3)  orders, if deemed necessary by the board
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0003|     and with the consent of the owners of the tracts or parcels to
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0004|     be encumbered with a preliminary assessment lien, the
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0005|     immediate placement of a preliminary assessment lien on tracts
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0006|     or parcels in the improvement district based on the estimated
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0007|     maximum benefit to be assessed against such tracts or parcels
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0008|     in order to facilitate interim financing of the improvement
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0009|     and provides for times and terms of paying the preliminary
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0010|     assessment lien, for the adjustment of the preliminary
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0011|     assessment lien and the placement of a final assessment lien
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0012|     upon each such tract or parcel pursuant to the provisions of
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0013|     Sections 19 and 20 of the Flood Control and Drainage
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0014|     Improvement District Act.  Both the preliminary and the final
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0015|     assessment liens shall be coequal with the lien for general ad
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0016|     valorem taxes and the lien of other improvement districts and
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0017|     are superior to all other liens, claims and titles.  The
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0018|     consent of any owner in an improvement district to the
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0019|     placement of a preliminary assessment lien on the owner's
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0020|     property shall not alter the assessment on any other tracts or
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0021|     parcels in the improvement district.
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0022|               F.  Upon the adoption of the provisional order by
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0023|     the board, the estimated maximum benefit roll showing the
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0024|     legal description of the property to be included in the
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0025|     district and the owners thereof may be recorded with the clerk
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0001|     of the county in which the property is located, which
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0002|     recording shall constitute notice of the pendency of the
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0003|     special assessment district and shall be constructive notice
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0004|     to the owner, purchaser or encumbrancer of the property
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0005|     concerned; and any person whose conveyance is subsequently
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0006|     recorded shall be considered a subsequent purchaser or
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0007|     encumbrancer and shall be subject to and bound by all the
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0008|     proceedings taken after the recording of the notice to the
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0009|     same extent as if he were made a party to such special
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0010|     assessment proceedings.
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0011|               G.  This notice need not be acknowledged to entitle
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0012|     it to be recorded.
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0013|               H.  Nothing in this section shall be construed to
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0014|     affect the priority of special assessment liens.
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0015|          Section 9.  IMPROVEMENT DISTRICT--NOTICE OF ASSESSMENT--
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0016|     PROTESTS.--
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0017|               A.  The notice of the provisional order creating an
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0018|     improvement district shall:
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0019|                    (1)  contain the time and place when the board
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0020|     shall hold a hearing on the provisional order creating the
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0021|     improvement district;
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0022|                    (2)  describe the improvement to be
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0023|     constructed and the general location thereof; and
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0024|                    (3)  state that any interested person may
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0025|     ascertain in the office of the county clerk:
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0001|                         (a)  a description of the property to be
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0002|     assessed; and
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0003|                         (b)  the maximum amount of benefit
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0004|     estimated to be conferred on each tract or parcel of land.
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0005|               B.  Not more than thirty days nor less than ten
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0006|     days before the day of the hearing, the county clerk, his
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0007|     deputy or the engineer shall mail the notice of the hearing on
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0008|     the provisional order to the owner of the tract or parcel of
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0009|     land being assessed the cost of the improvement at his last
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0010|     known address.  The name and address of the owner of each
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0011|     tract of land shall be obtained from the records of the county
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0012|     assessor or any other source the county clerk or engineer
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0013|     deems reliable.  Proof of the mailing is to be made by
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0014|     affidavit of the county clerk, his deputy or the engineer and
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0015|     shall be filed in the office of the county clerk.  Failure to
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0016|     mail any notice shall not invalidate any of the proceedings
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0017|     authorized in the Flood Control and Drainage Improvement
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0018|     District Act.
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0019|               C.  Notice of the hearing shall also be published
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0020|     once each week for three consecutive weeks, and the last
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0021|     publication shall be at least one week prior to the day of the
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0022|     hearing.  Such service by publication shall be verified by an
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0023|     affidavit of the publisher, which is to be filed in the office
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0024|     of the county clerk.
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0025|          Section 10.  IMPROVEMENT DISTRICT--PROVISIONAL ORDER--
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0001|     PROTEST--ACTION IN DISTRICT COURT.--
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0002|               A.  At the hearing of the board on the provisional
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0003|     order creating an improvement district, any interested person
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0004|     or owner of property to be assessed for the improvement may
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0005|     file a written protest or objection questioning the:
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0006|                    (1)  propriety and advisability of
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0007|     constructing the improvement;
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0008|                    (2)  estimated cost of the improvement;
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0009|                    (3)  manner of paying for the improvement; or
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0010|                    (4)  estimated maximum benefit to each
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0011|     individual tract or parcel of land.
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0012|               B.  The board may recess the hearing from time to
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0013|     time so that all protestants may be heard.
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0014|               C.  Within thirty days after the board, by adoption
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0015|     of a resolution, has:
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0016|                    (1)  concluded the hearing;
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0017|                    (2)  determined:
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0018|                         (a)  the advisability of constructing
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0019|     the improvement; and
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0020|                         (b)  the type and character of the
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0021|     improvement; and
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0022|                    (3)  created the improvement district, any
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0023|     person who during the hearing filed a written protest with the
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0024|     board protesting the construction of the improvement may
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0025|     commence an action in district court to correct or set aside
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0001|     the determination of the board.  After the lapse of thirty
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0002|     days after adoption of the resolution by the board, any action
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0003|     attacking the validity of the proceedings and the amount of
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0004|     benefit to be derived from the improvement is perpetually
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0005|     barred.  Where no person has filed a written protest during
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0006|     the hearing and all owners of property to be assessed, upon
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0007|     conclusion of the hearing, submit to the governing body
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0008|     written statements in favor of the creation of the improvement
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0009|     district for the types and character of improvements indicated
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0010|     in the provisional order, such owners shall be deemed to have
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0011|     waived their right to bring any action challenging the
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0012|     validity of the proceedings or the amount of benefit to be
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0013|     derived from the improvements.
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0014|          Section 11.  IMPROVEMENT DISTRICT--PETITION METHOD--
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0015|     REQUIREMENTS--DISTRIBUTION OF COSTS--NOTICE OF HEARING.--
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0016|               A.  Whenever the owners of sixty-six and two-thirds
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0017|     percent or more of the total assessed valuation of the
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0018|     property to be benefited, exclusive of any land owned by the
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0019|     United States or New Mexico, petition the board in writing to
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0020|     create an improvement district and construct the improvement
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0021|     described in the petition, the board may:
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0022|                    (1)  create the improvement district;
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0023|                    (2)  select the type of material and method of
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0024|     construction to be used; and
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0025|                    (3)  proceed with the construction of the
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0001|     improvement as authorized in Section 15 of the Flood Control
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0002|     and Drainage Improvement District Act after complying with the
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0003|     requirements for a preliminary hearing required in this
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0004|     section.  A governing body of a municipality, board of county
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0005|     commissioners or local board of education may sign a petition
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0006|     seeking the improvement for any land under its control.  The
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0007|     submission of separate petitions for any one improvement
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0008|     district within a six-month period shall be considered as a
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0009|     single petition.
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0010|               B.  The board may:
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0011|                    (1)  pay the cost of the improvement;
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0012|                    (2)  assess the cost of the improvement
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0013|     against the benefiting tracts or parcels of land; or
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0014|                    (3)  pay part of the cost of the improvement
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0015|     and assess part of the cost of the improvement against the
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0016|     benefiting tracts or parcels of land.
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0017|               C.  If any part or all of the cost of the
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0018|     improvement sought to be constructed as authorized in this
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0019|     section is to be assessed against the benefiting tracts or
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0020|     parcels of land, the board shall hold a preliminary hearing on
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0021|     the proposed improvement district and give notice of the
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0022|     preliminary hearing.
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0023|          Section 12.  IMPROVEMENT DISTRICT--NOTICE OF PRELIMINARY
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0024|     HEARING.--
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0025|               A.  The notice of the preliminary hearing required
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0001|     in Section 11 of the Flood Control and Drainage Improvement
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0002|     District Act shall contain:
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0003|                    (1)  the time and place when the board will
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0004|     hold a preliminary hearing on the proposed improvement;
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0005|                    (2)  the estimated cost of the improvement;
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0006|                    (3)  the boundary of the improvement district;
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0007|                    (4)  the route of the improvement by streets
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0008|     or roads or location of the improvements;
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0009|                    (5)  the location of the proposed improvement;
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0010|                    (6)  a description of each property to be
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0011|     assessed;
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0012|                    (7)  the estimated amount of the assessment
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0013|     against each tract or parcel of land; and
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0014|                    (8)  the amount of the cost to be assumed by
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0015|     the authority, if any.
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0016|               B.  If the owners are found within the authority,
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0017|     the notices shall be personally served on them at least thirty
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0018|     days prior to the day of the hearing.  The notice shall also
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0019|     be published in a newspaper published in the county once each
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0020|     week for four successive weeks.  The last publication shall be
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0021|     at least three days before the day of the preliminary hearing.
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0022|          Section 13.  IMPROVEMENT DISTRICT--PRELIMINARY HEARING--
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0023|     PROTEST--ACTION OF THE BOARD--ACTION IN DISTRICT COURT.--
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0024|               A.  At the preliminary hearing of the board on the
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0025|     question of creating an improvement district as authorized in
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<center>- 16 -</center>

0001|     Section 11 of the Flood Control and Drainage Improvement
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0002|     District Act, any owner of a tract or parcel of land to be
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0003|     assessed may contest:
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0004|                    (1)  the proposed assessment;
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0005|                    (2)  the regularity of the proceedings
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0006|     relating to the improvement;
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0007|                    (3)  the benefits of the improvement; or
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0008|                    (4)  any other matter relating to the
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0009|     improvement district.
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0010|               B.  The board shall not assess the tract or parcel
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0011|     of land an amount greater than the actual benefit to the tract
    |
0012|     or parcel of land by reason of the enhanced value of the tract
    |
0013|     or parcel of land as a result of the improvement as
    |
0014|     ascertained at the hearing.  The board may allow a fair price,
    |
0015|     based on its current value, as a setoff against any assessment
    |
0016|     against a tract or parcel of land if the owner has improved
    |
0017|     the tract or parcel of land in such a manner that the
    |
0018|     improvement may be made part of the proposed improvement.
    |
0019|               C.  At the hearing, the board may:
    |
0020|                    (1)  correct any mistake or irregularity in
    |
0021|     any proceeding relating to the improvement;
    |
0022|                    (2)  correct an assessment made against any
    |
0023|     tract or parcel of land;
    |
0024|                    (3)  in case of any invalidity, reassess the
    |
0025|     cost of the improvement against a benefiting tract or parcel
    |
<center>- 17 -</center>

0001|     of land; or
    |
0002|                    (4)  recess the hearing from time to time.
    |
0003|               D.  Within thirty days after the hearing, any owner
    |
0004|     of a tract or parcel of land assessed, whether he appeared at
    |
0005|     the hearing or not, may commence an action in district court
    |
0006|     seeking an account of any error or invalidity of the
    |
0007|     proceedings relating to the improvement district or to set
    |
0008|     aside or correct the assessment or any proceedings relating to
    |
0009|     the improvement district.  Thereafter, any owner or his heirs,
    |
0010|     assigns, successors or personal representatives are
    |
0011|     perpetually barred from any action or any defense of error or
    |
0012|     invalidity in the proceedings or assessments.  Where no owner
    |
0013|     of a tract or parcel to be assessed has presented a protest
    |
0014|     during the hearing and all owners of the property to be
    |
0015|     assessed, upon conclusion of the hearing, submit written
    |
0016|     statements in favor of the creation of the improvement
    |
0017|     district for the types and character of improvements indicated
    |
0018|     in the petition, such owners shall be deemed to have waived
    |
0019|     their right to bring any action in district court seeking an
    |
0020|     account of any error or invalidity of the proceedings relating
    |
0021|     to the improvement district or to set aside or correct the
    |
0022|     assessment or any proceedings relating to the improvement
    |
0023|     district.
    |
0024|          Section 14.  IMPROVEMENT DISTRICT--LEVY AND COLLECTION OF
    |
0025|     ASSESSMENTS PRIOR TO COMMENCING IMPROVEMENT--SPECIAL FUND--
    |
<center>- 18 -</center>

0001|     MISUSE--PENALTY.--
    |
0002|               A.  Whenever the board:
    |
0003|                    (1)  elects to order the construction of a
    |
0004|     project as authorized in the Flood Control and Drainage
    |
0005|     Improvement District Act;
    |
0006|                    (2)  uses authority-owned or -leased equipment
    |
0007|     to construct the project; and
    |
0008|                    (3)  determines what portion of the estimated
    |
0009|     cost of the construction shall be paid by each tract or parcel
    |
0010|     of land benefited or to be benefited by the construction; the
    |
0011|     assessment may be levied and the installments collected prior
    |
0012|     to the commencement of work and as work progresses according
    |
0013|     to the terms of payment fixed by the board.
    |
0014|               B.  The construction shall commence within sixty
    |
0015|     days after the payment of the first installment of the
    |
0016|     assessment and be diligently prosecuted so that the
    |
0017|     construction is completed within one year from the date of
    |
0018|     commencement.  At the end of the one-year period, any tract or
    |
0019|     parcel of land that has not received the benefits provided by
    |
0020|     this section shall be released of any lien assessed against
    |
0021|     the tract or parcel of land by reason of this section, and all
    |
0022|     assessment money collected from each owner of a tract or
    |
0023|     parcel of land so assessed and not benefited shall be
    |
0024|     returned.
    |
0025|               C.  All assessment money collected under this
    |
<center>- 19 -</center>

0001|     section shall be held by the county treasurer in a special
    |
0002|     account as a separate fund and used only for constructing the
    |
0003|     improvement, including the purchasing or leasing of necessary
    |
0004|     equipment.  The use of the special fund for any purpose other
    |
0005|     than that required under this section by any public official,
    |
0006|     treasurer or member of the board is prohibited and is a felony
    |
0007|     punishable by a fine not exceeding one thousand dollars
    |
0008|     ($1,000) or by imprisonment in the penitentiary for not more
    |
0009|     than two years or by both fine and imprisonment in the
    |
0010|     discretion of the court.
    |
0011|          Section 15.  IMPROVEMENT DISTRICT--ADVERTISING FOR BIDS--
    |
0012|     AUTHORITY MAY DO WORK--CONTRIBUTION BY GOVERNMENTAL AGENCY.--
    |
0013|               A.  If a continuous area proposed to be improved
    |
0014|     exceeds five hundred feet in length, the board, before using
    |
0015|     authority equipment and employees to construct the
    |
0016|     improvement, shall advertise for bids for the construction of
    |
0017|     the improvement and award the contract for the construction of
    |
0018|     the improvement to the lowest responsible bidder; provided,
    |
0019|     however, an authority may construct the improvement using the
    |
0020|     same specifications upon which bids were requested if:
    |
0021|                    (1)  the authority can guarantee to construct
    |
0022|     the improvement for an amount less than the lowest bid amount
    |
0023|     and not assess the benefiting tracts or parcels of land an
    |
0024|     amount in excess of the lowest responsible bid, if a bid is
    |
0025|     received; or
    |
<center>- 20 -</center>

0001|                    (2)  the authority receives no bids for the
    |
0002|     construction of the improvement.
    |
0003|               B.  If using authority-owned or -leased equipment
    |
0004|     and authority employees in constructing an improvement, an
    |
0005|     authority may cooperate with another governmental agency that
    |
0006|     contributes money, labor or a portion of the cost of materials
    |
0007|     towards completion of the improvement.
    |
0008|          Section 16.  NOTICE OF BID--ACCEPTANCE OF BID.--
    |
0009|               A.  After the board creates an improvement
    |
0010|     district, the board may proceed as authorized in Section 14 or
    |
0011|     15 of the Flood Control and Drainage Improvement District Act
    |
0012|     or call for sealed bids on the proposed improvement.  The
    |
0013|     notice of the call for bids shall be made in accordance with
    |
0014|     the provisions of Section 13-1-104 NMSA 1978.
    |
0015|               B.  After advertising for bids, the authority may
    |
0016|     make minor alterations or changes in the plans and
    |
0017|     specifications to correct errors or omissions in the original
    |
0018|     plans and specifications.
    |
0019|               C.  The board shall award the contract to the
    |
0020|     lowest responsible bidder unless the board:
    |
0021|                    (1)  elects to construct the improvements as
    |
0022|     authorized in Section 14 or 15 of the Flood Control and
    |
0023|     Drainage Improvement District Act; or
    |
0024|                    (2)  rejects all bids submitted for the
    |
0025|     construction of the improvement.  Such bids shall be rejected
    |
<center>- 21 -</center>

0001|     in the following manner:
    |
0002|                         (a)  if less than three bids are
    |
0003|     received, the purchase may be made without bids at the best
    |
0004|     documented obtainable price; or
    |
0005|                         (b)  if three or more bids are received,
    |
0006|     the authority may reject any or all bids but shall readvertise
    |
0007|     and accept new bids; and
    |
0008|                         (c)  if no new bids are received or if
    |
0009|     all new bids are rejected, the rejection shall be accompanied
    |
0010|     by a written statement of the board declaring the reasons for
    |
0011|     the rejection, and the authority may then purchase the
    |
0012|     required items on the open market at the best documented
    |
0013|     obtainable price.
    |
0014|          Section 17.  IMPROVEMENT DISTRICT--ASSESSMENT OF RAILROAD
    |
0015|     PROPERTY.--The board may assess the property of any railroad
    |
0016|     the whole cost of the improvement between or under the rails
    |
0017|     or tracks and two feet on each side of the rail or track of
    |
0018|     the railroad.  The assessment shall be levied as other
    |
0019|     assessments are levied and shall constitute a lien coequal
    |
0020|     with the lien of other taxes and prior and superior to all
    |
0021|     other liens, claims and titles and may be enforced by sale of
    |
0022|     the railroad property or by suit against the owner of the
    |
0023|     railroad.
    |
0024|          Section 18.  IMPROVEMENT DISTRICT--ASSESSMENT ROLL--
    |
0025|     NOTICE OF ASSESSMENT HEARING.--
    |
<center>- 22 -</center>

0001|               A.  After the contract has been awarded and the
    |
0002|     board determines the total cost of the improvement to the
    |
0003|     authority, the board shall determine what portion of the total
    |
0004|     cost of the improvement shall be assessed against the
    |
0005|     benefited tract or parcel of land.  The assessment, including
    |
0006|     the cost of the improvement at an intersection, shall not
    |
0007|     exceed the estimated benefit to the tract or parcel of land
    |
0008|     assessed.
    |
0009|               B.  With the engineer, the board shall prepare and
    |
0010|     cause to be filed in the office of the county clerk an
    |
0011|     assessment roll containing, among other things:
    |
0012|                    (1)  the name of the last known owner of the
    |
0013|     tract or parcel of land to be assessed or, if his name is
    |
0014|     unknown, state "unknown";
    |
0015|                    (2)  a description of the tract or parcel of
    |
0016|     land to be assessed; and
    |
0017|                    (3)  the amount of the assessment against each
    |
0018|     tract or parcel of land.
    |
0019|               C.  After the filing of the assessment roll, the
    |
0020|     board shall, by resolution, set a time and place for the
    |
0021|     assessment hearing when an owner may object to the amount of
    |
0022|     the assessment.
    |
0023|               D.  Not more than thirty days nor less than ten
    |
0024|     days before the day of the hearing, the county clerk, his
    |
0025|     deputy or the engineer shall mail the notice of the hearing on
    |
<center>- 23 -</center>

0001|     the assessment roll to the owner of the tract or parcel of
    |
0002|     land being assessed the cost of the improvement at his last
    |
0003|     known address.  The name and address of the owner of each
    |
0004|     tract of land shall be obtained from the records of the county
    |
0005|     assessor or any other source the county clerk or engineer
    |
0006|     deems reliable.  Proof of the mailing is to be made by
    |
0007|     affidavit of the county clerk, his deputy or the engineer and
    |
0008|     shall be filed in the office of the county clerk.  Failure to
    |
0009|     mail any notice shall not invalidate any of the proceedings
    |
0010|     authorized in the Flood Control and Drainage Improvement
    |
0011|     District Act.  The notice of the hearing shall also be
    |
0012|     published once each week for three consecutive weeks, and the
    |
0013|     last publication shall be at least one week prior to the day
    |
0014|     of the hearing.  Such service by publication shall be verified
    |
0015|     by an affidavit of the publisher, which is to be filed in the
    |
0016|     office of the county clerk.
    |
0017|          Section 19.  IMPROVEMENT DISTRICT--FILING OF OBJECTIONS--
    |
0018|     ASSESSMENT HEARING--ACTION OF THE BOARD--APPEAL TO DISTRICT
    |
0019|     COURT.--
    |
0020|               A.  Not later than three days before the date of
    |
0021|     the hearing on the assessment roll, any owner of a tract or
    |
0022|     parcel of land that is listed on the assessment roll may file
    |
0023|     his specific objections in writing with the county clerk. 
    |
0024|     Unless presented as required in this subsection, any objection
    |
0025|     to the regularity, validity and correctness of:
    |
<center>- 24 -</center>

0001|                    (1)  the proceedings;
    |
0002|                    (2)  the assessment roll;
    |
0003|                    (3)  each assessment contained on the
    |
0004|     assessment roll; or
    |
0005|                    (4)  the amount of the assessment levied
    |
0006|     against each tract or parcel of land, is waived.
    |
0007|               B.  At the hearing, the board shall hear all
    |
0008|     objections that have been filed as provided in this section
    |
0009|     and may recess the hearing from time to time and, by
    |
0010|     resolution, revise, correct, confirm or set aside any
    |
0011|     assessment and order another assessment be made de novo.
    |
0012|               C.  The board by resolution shall, by reference to
    |
0013|     the assessment roll as so modified, if modified, and as
    |
0014|     confirmed by the resolution, levy the assessments contained in
    |
0015|     the assessment roll.  The assessments may be levied in stages
    |
0016|     if preliminary liens are established pursuant to Section 8 of
    |
0017|     the Flood Control and Drainage Improvement District Act.  The
    |
0018|     resolution of the board shall be:
    |
0019|                    (1)  a final determination of the regularity,
    |
0020|     validity and correctness of:
    |
0021|                         (a)  the proceedings;
    |
0022|                         (b)  the assessment roll;
    |
0023|                         (c)  each assessment contained on the
    |
0024|     assessment roll; and
    |
0025|                         (d)  the amount of the assessment levied
    |
<center>- 25 -</center>

0001|     against each tract or parcel of land; and
    |
0002|                    (2)  conclusive upon the owners of the tract
    |
0003|     or parcel of land assessed.
    |
0004|               D.  Within fifteen days after the publication of
    |
0005|     the title and general summary of the resolution or posting of
    |
0006|     the resolution, any owner who has filed an objection as
    |
0007|     provided in this section may commence an action in district
    |
0008|     court to correct or set aside the determination of the board. 
    |
0009|     After the lapse of fifteen days after the publication or
    |
0010|     posting, all actions that include the defense of confiscation
    |
0011|     or attack the regularity, validity and correctness of:
    |
0012|                    (1)  the proceedings;
    |
0013|                    (2)  the assessment roll;
    |
0014|                    (3)  each assessment contained on the
    |
0015|     assessment roll; or
    |
0016|                    (4)  the amount of the assessment levied
    |
0017|     against each tract or parcel of land, are perpetually barred.
    |
0018|          Section 20.  IMPROVEMENT DISTRICT--ASSESSMENTS--TERMS OF
    |
0019|     PAYMENT--LIENS.--
    |
0020|               A.  The board may, by resolution:
    |
0021|                    (1)  establish the time and terms of paying
    |
0022|     the assessment or installments on the assessment, including
    |
0023|     but not limited to any provision for differing optional time
    |
0024|     periods over which installments of assessments for the same
    |
0025|     district may be paid and, at the discretion of the board,
    |
<center>- 26 -</center>

0001|     differing interest rates on the assessments that are payable
    |
0002|     over different time periods; provided that in the situation
    |
0003|     where the board provides for optional time periods for payment
    |
0004|     of assessment installments, the resolution shall set a limit
    |
0005|     on the time during which the affected property owner must
    |
0006|     select one of the specified options in writing and shall
    |
0007|     provide that failure to select one of the options within the
    |
0008|     time limit conclusively establishes the selection of a
    |
0009|     specific option designated in the resolution;
    |
0010|                    (2)  set any rate or rates of interest upon
    |
0011|     deferred payments of the assessment or provide for setting, by
    |
0012|     resolution, of the rate or rates of interest upon deferred
    |
0013|     payments after sale of bonds or assignable certificates as
    |
0014|     provided in Section 21 of the Flood Control and Drainage
    |
0015|     Improvement District Act, which shall commence from the date
    |
0016|     of publication or posting of the resolution levying the
    |
0017|     assessment; provided that the same interest rate shall be set
    |
0018|     for assessments that are payable over the same time period;
    |
0019|     and provided further that no rate or rates of interest in
    |
0020|     excess of twelve percent a year upon such deferred payments of
    |
0021|     the assessment shall become effective unless the state board
    |
0022|     of finance or any successor thereof at any time approves such
    |
0023|     higher rate or rates in writing based upon the determination
    |
0024|     of the state board of finance that the higher rate is
    |
0025|     reasonable under existing or anticipated bond market
    |
<center>- 27 -</center>

0001|     conditions, which approval shall be conclusive; 
    |
0002|                    (3)  fix penalties to be charged for
    |
0003|     delinquent payment of an assessment; and
    |
0004|                    (4)  establish procedures and standards for an
    |
0005|     adjustment of assessment in order to allow transfer of a
    |
0006|     parcel free of an assessment lien, accommodate subdivision of
    |
0007|     an assessed parcel or accommodate property line corrections
    |
0008|     and adjustments without changing the original payment
    |
0009|     schedule, the priority or original amount of the assessment. 
    |
0010|     Such an adjustment of assessment may allow the owner of the
    |
0011|     original tract of land to pay off any pro rata share of the
    |
0012|     assessment lien in advance of the schedule of payments.  The
    |
0013|     procedures and standards may also provide for the method of
    |
0014|     assessment on the newly created parcels to vary from the
    |
0015|     method of assessment used on the original tract.
    |
0016|               B.  After the publication or posting of the
    |
0017|     resolution levying an assessment as provided in Section 19 of
    |
0018|     the Flood Control and Drainage Improvement District Act, the
    |
0019|     assessment, together with any interest or penalty accruing to
    |
0020|     the assessment, is a lien upon the tract or parcel of land so
    |
0021|     assessed.  Such a lien is coequal with the lien for general ad
    |
0022|     valorem taxes and the lien of other improvement districts and
    |
0023|     is superior to all other liens, claims and titles.  Unmatured
    |
0024|     installments are not deemed to be within the terms of any
    |
0025|     general covenant or warranty.  All purchasers, mortgagees or
    |
<center>- 28 -</center>

0001|     encumbrancers of a tract or parcel of land so assessed shall
    |
0002|     hold the tract or parcel of land subject to the lien so
    |
0003|     created unless the assessment lien is adjusted pursuant to
    |
0004|     this section.
    |
0005|               C.  Within sixty days after the publication or
    |
0006|     posting of the resolution ratifying an assessment roll and
    |
0007|     levying the assessments, the county clerk shall prepare, sign,
    |
0008|     attest and record in his office a claim of lien for any unpaid
    |
0009|     amount due and assessed against a tract or parcel of land.
    |
0010|               D.  Any tract or parcel of land so assessed shall
    |
0011|     not be relieved from the assessment or lien by the sale of the
    |
0012|     tract or parcel of land for general taxes or any other
    |
0013|     assessment, subject to the provisions of Section 27 of the
    |
0014|     Flood Control and Drainage Improvement District Act.  The
    |
0015|     statute of limitations shall not begin to run against an
    |
0016|     assessment until after the last installment of the assessment
    |
0017|     becomes due.
    |
0018|               E.  The fact that an improvement is omitted for any
    |
0019|     benefited tract or parcel of land does not invalidate a lien
    |
0020|     or assessment made against any other tract or parcel of land.
    |
0021|          Section 21.  IMPROVEMENT DISTRICT--AUTHORITY TO ISSUE
    |
0022|     BONDS OR ASSIGNABLE CERTIFICATES.--
    |
0023|               A.  To pay all or any part of the cost of the
    |
0024|     improvement, including those items set out in Subsection C of
    |
0025|     Section 8 of the Flood Control and Drainage Improvement
    |
<center>- 29 -</center>

0001|     District Act, the board may issue in the name of the authority
    |
0002|     bonds in such form as the board may determine or assignable
    |
0003|     certificates in an amount not exceeding the total cost of the
    |
0004|     improvement and maturing not more than twenty years from the
    |
0005|     date of issuance.  If the bonds or assignable certificates
    |
0006|     recite that:
    |
0007|                    (1)  the proceedings relating to making the
    |
0008|     improvement and levying the assessments as provided in Section
    |
0009|     19 of that act or placing the preliminary lien as provided in
    |
0010|     Section 8 of that act to pay for the improvement have been
    |
0011|     done in compliance with law; and
    |
0012|                    (2)  all prerequisites to the fixing of the
    |
0013|     assessment lien or placing the preliminary lien against the
    |
0014|     tract or parcel of land benefited by the improvement have been
    |
0015|     performed, such recital shall be conclusive evidence of the
    |
0016|     facts recited.
    |
0017|               B.  The assignable certificates shall:
    |
0018|                    (1)  declare the liability of the owner of the
    |
0019|     tract or parcel of land so assessed or the liability of the
    |
0020|     tract or parcel of land so assessed for payment of the
    |
0021|     assessment, interest and penalties;
    |
0022|                    (2)  fix the terms and conditions of the
    |
0023|     certificates; and
    |
0024|                    (3)  accurately describe the tract or parcel
    |
0025|     of land covered by the certificate.
    |
<center>- 30 -</center>

0001|               C.  The bonds shall:
    |
0002|                    (1)  recite the terms and conditions for their
    |
0003|     issuance;
    |
0004|                    (2)  be payable from money collected from the
    |
0005|     preliminary assessment lien authorized in Section 8 of the
    |
0006|     Flood Control and Drainage Improvement District Act and, if so
    |
0007|     payable, also payable from the proceeds of bonds payable from
    |
0008|     the final assessment lien authorized in Section 19 of that
    |
0009|     act; or
    |
0010|                    (3)  be payable from the money collected from
    |
0011|     the assessments authorized in Section 19 of that act; provided
    |
0012|     that if assessments are made payable over more than one period
    |
0013|     of time as permitted by Section 20 of that act, specified
    |
0014|     portions of the bonds may be payable from money collected from
    |
0015|     those assessments payable over that period of time that
    |
0016|     generally corresponds to the period of time over which such
    |
0017|     specified portions of the bonds are payable; and
    |
0018|                    (4)  bear a rate or rates of interest that
    |
0019|     shall not exceed the rate of interest on the deferred
    |
0020|     installments of the assessments or, if more than one rate of
    |
0021|     interest is specified for assessments as permitted by Section
    |
0022|     19 of that act, on that portion of the deferred installments
    |
0023|     of assessments from which that specified portion of the bonds
    |
0024|     may be payable. 
    |
0025|               D.  The bonds may be issued to the contractor in
    |
<center>- 31 -</center>

0001|     payment for the construction of the improvement or may be
    |
0002|     issued and sold:
    |
0003|                    (1)  in payment of the authority's proportion
    |
0004|     of the cost of the improvement;
    |
0005|                    (2)  in payment of the proportionate cost, if
    |
0006|     the improvement is done in cooperation with another
    |
0007|     governmental agency;
    |
0008|                    (3)  in payment of the construction of the
    |
0009|     improvement done under contract; or
    |
0010|                    (4)  in reimbursement to the authority, if the
    |
0011|     authority constructed the improvement with authority-owned or
    |
0012|     -leased equipment and authority employees.
    |
0013|               E.  Bonds or assignable certificates may be sold at
    |
0014|     a public or private sale at a discount.
    |
0015|          Section 22.  IMPROVEMENT DISTRICT--RIGHTS OF NEGOTIABLE
    |
0016|     BONDHOLDERS OR ASSIGNABLE CERTIFICATE HOLDERS.--
    |
0017|               A.  If the board fails or refuses to foreclose and
    |
0018|     sell a tract or parcel of land for the delinquent assessment
    |
0019|     or installment of the assessment as required in Section 23 of
    |
0020|     the Flood Control and Drainage Improvement District Act, any
    |
0021|     holder of a bond or assignable certificate secured by the
    |
0022|     assessment may foreclose the assessment lien on such
    |
0023|     delinquent property in the manner provided by law for the
    |
0024|     foreclosure of mortgages on real estate.
    |
0025|               B.  Any person holding two or more assignable
    |
<center>- 32 -</center>

0001|     certificates issued as authorized in Section 21 of the Flood
    |
0002|     Control and Drainage Improvement District Act may sue in the
    |
0003|     same action on all tracts or parcels of land described in the
    |
0004|     certificate to enforce the lien against the tract or parcel of
    |
0005|     land described in the certificate unless the assessment lien
    |
0006|     has been adjusted pursuant to Section 20 of that act.
    |
0007|               C.  Whenever a governing body of a municipality,
    |
0008|     board of county commissioners or local board of education is
    |
0009|     delinquent in the payment of an assessment, the holder of any
    |
0010|     assignable certificate issued against the tract or parcel of
    |
0011|     land of the municipality, county or school district has the
    |
0012|     rights and remedies for the collection of the assessment as
    |
0013|     are given by law for the collection of judgments against
    |
0014|     municipalities, counties and school districts.
    |
0015|          Section 23.  IMPROVEMENT DISTRICT--ADDITIONAL DUTIES
    |
0016|     IMPOSED ON AUTHORITY.--
    |
0017|               A.  Whenever an improvement district has been
    |
0018|     created and bonds or assignable certificates have been issued
    |
0019|     to finance the improvement, the authority shall:
    |
0020|                    (1)  act as agent for the collection of the
    |
0021|     assessments;
    |
0022|                    (2)  collect the assessments when due;
    |
0023|                    (3)  act as trustee for the benefit of the
    |
0024|     holders of the bonds or assignable certificates; 
    |
0025|                    (4)  annually prepare a statement that shall:
    |
<center>- 33 -</center>

0001|                         (a)  be available for inspection in the
    |
0002|     office of the county treasurer;
    |
0003|                         (b)  reflect the financial condition of
    |
0004|     the improvement district; and
    |
0005|                         (c)  list all the delinquencies existing
    |
0006|     at that time; and
    |
0007|                    (5)  institute proceedings to foreclose the
    |
0008|     assessment lien against any tract or parcel of land that is
    |
0009|     delinquent in the payment of the assessment or installment of
    |
0010|     an assessment for a period of more than one year.
    |
0011|               B.  If more than one improvement district is
    |
0012|     created, the money from assessments in each district shall be
    |
0013|     kept in a separate fund and used for the payment of principal
    |
0014|     and interest of the bonds or assignable certificates
    |
0015|     outstanding against that improvement district.
    |
0016|          Section 24.  IMPROVEMENT DISTRICT--ACCEPTANCE OF DEED IN
    |
0017|     LIEU OF FORECLOSURE.--In lieu of the foreclosure of a lien
    |
0018|     against any tract or parcel of land that is delinquent in the
    |
0019|     payment of an assessment or installment of an assessment for a
    |
0020|     period of more than one year, the authority may accept a deed
    |
0021|     to the property subject to the lien if the owner of the
    |
0022|     property tenders the deed to the authority.
    |
0023|          Section 25.  IMPROVEMENT DISTRICT--FORECLOSURE--TRUSTEE
    |
0024|     MAY PURCHASE AT FORECLOSURE OF LIENS--CONTENTS OF BID.--Any
    |
0025|     delinquent assessment has the effect of a mortgage and shall
    |
<center>- 34 -</center>

0001|     be foreclosed and sold in the manner provided by law for the
    |
0002|     foreclosure of mortgages on real estate.  In any action
    |
0003|     seeking the foreclosure of a lien against any tract or parcel
    |
0004|     of land assessed by the authority for the construction of any
    |
0005|     project after either or both assignable certificates or bonds
    |
0006|     have been issued, if there is no other purchaser for the tract
    |
0007|     or parcel of land having a delinquent assessment, the
    |
0008|     authority as trustee of the fund from which the assignable
    |
0009|     certificates or bonds are to be paid, may:
    |
0010|               A.  purchase the tract or parcel of land sold at
    |
0011|     the foreclosure sale; and
    |
0012|               B.  bid, in lieu of cash, the full amount of the
    |
0013|     assessment, interest, penalties, attorney fees and costs found
    |
0014|     by the court to be due and payable under the resolution
    |
0015|     creating the lien and any cost taxed by the court in the
    |
0016|     foreclosure proceedings against the property ordered sold.
    |
0017|          Section 26.  IMPROVEMENT DISTRICT--TITLE SUBJECT TO
    |
0018|     REDEMPTION VESTS IN TRUSTEE.--Upon the acceptance or purchase
    |
0019|     of the tract or parcel of land as provided in Sections 24 and
    |
0020|     25 of the Flood Control and Drainage Improvement District Act,
    |
0021|     title to the tract or parcel of land, subject to the right of
    |
0022|     redemption provided by Subsection A of Section 27 of that act
    |
0023|     vests in the trustee of the fund from which the assignable
    |
0024|     certificates or bonds are payable.
    |
0025|          Section 27.  IMPROVEMENT DISTRICT--PRIVATE OR PUBLIC SALE
    |
<center>- 35 -</center>

0001|     OF PROPERTY--REDEMPTION PERIOD--APPLICATION FOR AUTHORIZATION--
    |
0002|     APPRAISEMENT--DISPOSITION OF PROCEEDS.--
    |
0003|               A.  No real property shall be sold by the trustee to
    |
0004|     satisfy a delinquent assessment until at least fifteen days
    |
0005|     after the date of the order, judgment or decree of the court,
    |
0006|     within which time the owner of the tract or parcel of land may
    |
0007|     pay off the decree and avoid the sale.  Any real estate sold
    |
0008|     under any order, judgment or decree of court to satisfy the
    |
0009|     lien may be redeemed at any time within one year of the date of
    |
0010|     sale by the owner or mortgage holder or other person having an
    |
0011|     interest, or their assigns, by repaying to the purchaser or his
    |
0012|     assign the amount paid with interest from the date of purchase
    |
0013|     at the rate of twelve percent per year.
    |
0014|               B.  After expiration of the fifteen-day period, the
    |
0015|     trustee may sell the property at a public or private sale
    |
0016|     subject to the right of redemption, and, if not paid from the
    |
0017|     proceeds of the sale, subject to the indebtedness claimed under
    |
0018|     the lien, ad valorem taxes and other special assessments having
    |
0019|     a lien on the property that is coequal with the lien for ad
    |
0020|     valorem taxes.
    |
0021|               C.  The proceeds of the sale of the foreclosed tract
    |
0022|     or parcel of land at either a private sale or a public sale
    |
0023|     shall be applied as follows:
    |
0024|                    (1)  first, to the payment of costs in giving
    |
0025|     notice of the sale and of conducting the sale;
    |
<center>- 36 -</center>

0001|                    (2)  second, to costs and fees taxed against
    |
0002|     the tract or parcel of land in the foreclosure proceedings;
    |
0003|                    (3)  third, on a pro rata basis, to the
    |
0004|     indebtedness claimed under the lien and to ad valorem taxes and
    |
0005|     other special assessments having a lien on the property that
    |
0006|     are coequal with the ad valorem taxes; and
    |
0007|                    (4)  fourth, after all such costs, liens,
    |
0008|     assessments and taxes are paid, to the former owner, mortgage
    |
0009|     holder or other parties having an interest in the tract or
    |
0010|     parcel, upon such person providing satisfactory proof to the
    |
0011|     court of such interest and upon approval of the court. 
    |
0012|     Receipts for the satisfaction of the indebtedness claimed under
    |
0013|     the lien shall be paid into the proper improvement district
    |
0014|     fund for payment of the interest and the bonds or assignable
    |
0015|     certificates.  In case of the sale of any tract or parcel of
    |
0016|     land subject to more than one delinquent assessment, such
    |
0017|     remaining proceeds shall be distributed into the proper
    |
0018|     improvement district funds for such payment pro rata based upon
    |
0019|     the total unpaid amount due each such district.
    |
0020|          Section 28.  IMPROVEMENT DISTRICT--ASSESSMENT FUNDS--
    |
0021|     EXPENDITURES--MISUSE--PENALTIES.--
    |
0022|               A.  All money received by the authority from any
    |
0023|     special assessment or assessment within an improvement district
    |
0024|     shall be held in a special fund and used to:
    |
0025|                    (1)  pay the cost of the improvement for which
    |
<center>- 37 -</center>

0001|     the assessment was made; 
    |
0002|                    (2)  reimburse the authority for any work
    |
0003|     performed by the authority in constructing the improvement and
    |
0004|     for administrative costs associated with the improvement
    |
0005|     district; or
    |
0006|                    (3)  pay the interest and principal due on any
    |
0007|     outstanding bonds or assignable certificates.
    |
0008|               B.  Any person who uses money in an improvement
    |
0009|     district fund other than as provided in this section is guilty
    |
0010|     of a felony and shall be punished by a fine not exceeding one
    |
0011|     thousand dollars ($1,000) or by imprisonment in the state
    |
0012|     penitentiary for not more than two years or by both such fine
    |
0013|     and imprisonment in the discretion of the court.
    |
0014|          Section 29.  TRANSFER OF IMPROVEMENT DISTRICT FUNDS.--The
    |
0015|     board may transfer to the general fund of the authority any
    |
0016|     money obtained from the levy of an assessment for an
    |
0017|     improvement district if:
    |
0018|               A.  bonds or assignable certificates were issued to
    |
0019|     finance the improvement; 
    |
0020|               B.  the proceeds of the bonds or assignable
    |
0021|     certificates were spent for the improvement; 
    |
0022|               C.  the assessments were levied and collected for the
    |
0023|     payment of the bonds or assignable certificates; and
    |
0024|               D.  either the bondholders or assignable certificate
    |
0025|     holders are barred by the statute of limitations or a court
    |
<center>- 38 -</center>

0001|     judgment or decree from collecting the indebtedness; or
    |
0002|               E.  the bonded indebtedness or assignable
    |
0003|     certificates have been paid.
    |
0004|          Section 30.  IMPROVEMENT DISTRICT--REASSESSMENT AFTER
    |
0005|     VOIDING OF ASSESSMENTS--PROCEDURE.--
    |
0006|               A.  It is the purpose of Sections 30 through 34 of
    |
0007|     the Flood Control and Drainage Improvement District Act to:
    |
0008|                    (1)  charge the cost of any improvement payable
    |
0009|     by the tract or parcel of land benefited by the improvement by
    |
0010|     making a reassessment for the cost of the improvement; and
    |
0011|                    (2)  permit the making of a reassessment when
    |
0012|     an original assessment is declared void or the enforcement of
    |
0013|     the original assessment is refused by a court.
    |
0014|               B.  Whenever any assessment for improvements is
    |
0015|     declared void or unenforceable, either directly or indirectly,
    |
0016|     by a decision of any court for any cause whatever, the board
    |
0017|     shall reassess the tracts or parcels of land that are benefited
    |
0018|     or will be benefited by the improvement to the extent of the
    |
0019|     proportionate share of the cost of the improvement of each
    |
0020|     tract or parcel of land, together with accrued interest.
    |
0021|               C.  The reassessment roll shall be prepared, a
    |
0022|     hearing held on the reassessment roll and a final determination
    |
0023|     of the reassessment made by the board, all in the manner
    |
0024|     provided in Sections 19 through 21 of the Flood Control and
    |
0025|     Drainage Improvement District Act for the original assessment.
    |
<center>- 39 -</center>

0001|          Section 31.  IMPROVEMENT DISTRICT--REASSESSMENT--DEFECTS
    |
0002|     WAIVED--CREDIT FOR PREVIOUS PAYMENT.--
    |
0003|               A.  The fact that:
    |
0004|                    (1)  the contract has been let;
    |
0005|                    (2)  an improvement has been wholly or
    |
0006|     partially constructed;
    |
0007|                    (3)  an omission, failure or neglect of the
    |
0008|     board, authority or county officer to comply with the
    |
0009|     requirements of Sections 1 through 21 of the Flood Control and
    |
0010|     Drainage Improvement District Act; or
    |
0011|                    (4)  any other matter whatsoever connected with
    |
0012|     the improvement or initial assessment is invalid;
    |
0013|     shall not invalidate or in any way affect the making of a
    |
0014|     reassessment as authorized in Section 30 of that act and
    |
0015|     charging the benefited tract or parcel of land the cost of the
    |
0016|     improvement.
    |
0017|               B.  When the reassessment is complete, any money paid
    |
0018|     on the former attempted assessment against a tract or parcel of
    |
0019|     land shall be credited to the tract or parcel of land in
    |
0020|     partial or whole payment of the reassessment.
    |
0021|          Section 32.  IMPROVEMENT DISTRICT--NOTICE OF APPEAL--
    |
0022|     APPEAL TO DISTRICT COURT--APPEAL TO SUPREME COURT.--
    |
0023|               A.  After an owner has filed a written objection with
    |
0024|     the authority to any reassessment as provided in Section 20 of
    |
0025|     the Flood Control and Drainage Improvement District Act and the
    |
<center>- 40 -</center>

0001|     board has determined the reassessment, any owner of a tract or
    |
0002|     parcel of land that is reassessed may within ten days after the
    |
0003|     reassessment roll has been ratified by resolution file a notice
    |
0004|     of appeal to the district court.  The notice to the authority
    |
0005|     shall describe the tract or parcel of land being reassessed and
    |
0006|     shall state the objections of the appellant to the
    |
0007|     reassessment.
    |
0008|               B.  Within twenty days after the reassessment roll
    |
0009|     has been ratified by resolution, the appellant shall file with
    |
0010|     the clerk of the district court copies of the:
    |
0011|                    (1)  notice of appeal;
    |
0012|                    (2)  appeal;
    |
0013|                    (3)  reassessment roll;
    |
0014|                    (4)  reassessment proceedings, all certified by
    |
0015|     the authority; and
    |
0016|                    (5)  a bond to the authority conditioned to pay
    |
0017|     all costs that may be awarded against the appellant in a sum of
    |
0018|     not less than two hundred dollars ($200), with such security as
    |
0019|     shall be approved by the district court.
    |
0020|          C.  The case shall:
    |
0021|                    (1)  be docketed by the clerk of the district
    |
0022|     court in the name of the owner taking such appeal against the
    |
0023|     authority as "an equal appeal from reassessments";
    |
0024|                    (2)  have preference over all civil cases
    |
0025|     pending in the district court except proceedings under:
    |
<center>- 41 -</center>

0001|                         (a)  the law relating to eminent domain by
    |
0002|     counties; or
    |
0003|                         (b)  actions of forcible entry and
    |
0004|     detainer; and
    |
0005|                    (3)  be tried as in the case of equitable
    |
0006|     causes, except that no pleadings are necessary.  The judgment
    |
0007|     of the district court shall be to confirm, modify or annul the
    |
0008|     reassessment insofar as the reassessment affects the tract or
    |
0009|     parcel of land of the appellant.  If the reassessment is
    |
0010|     confirmed, the fees of the authority for copies of the record
    |
0011|     shall be taxed against the appellant with the other costs.
    |
0012|               D.  On any judgment of the district court, appeal
    |
0013|     shall be to the supreme court as in other causes.  If an appeal
    |
0014|     is taken to the supreme court, the transcript of the
    |
0015|     proceedings in the district court shall be filed in the office
    |
0016|     of the clerk of the supreme court within thirty days after the
    |
0017|     rendering of the decree being appealed.  If the appeal is not
    |
0018|     filed within the thirty-day period, the appeal shall be
    |
0019|     forthwith dismissed upon motion.  If the appeal is properly
    |
0020|     prosecuted, the supreme court shall advance the cause on the
    |
0021|     docket and hear the appeal at the earliest possible
    |
0022|     opportunity.
    |
0023|          Section 33.  IMPROVEMENT DISTRICT--PAYMENT OF
    |
0024|     REASSESSMENT--CONTINUING PROCEEDINGS TO COLLECT ASSESSMENT.--
    |
0025|               A.  The board shall enforce payment of the
    |
<center>- 42 -</center>

0001|     reassessment of the tract or parcel of land benefiting from an
    |
0002|     improvement in the manner provided in the Flood Control and
    |
0003|     Drainage Improvement District Act for the enforcement of the
    |
0004|     original assessment.
    |
0005|               B.  If for any reason a reassessment is held to be
    |
0006|     invalid or uncollectible, the board shall continue to reassess
    |
0007|     the tract or parcel of land as provided in Sections 30 through
    |
0008|     34 of the Flood Control and Drainage Improvement District Act
    |
0009|     until the benefited tract or parcel of land has paid the cost
    |
0010|     of any improvement chargeable to the benefited tract or parcel
    |
0011|     of land.
    |
0012|          Section 34.  IMPROVEMENT DISTRICT--APPEAL OF REASSESSMENT--
    |
0013|     PROCEDURE EXCLUSIVE.--
    |
0014|               A.  The rights and remedies granted in Section 19 of
    |
0015|     the Flood Control and Drainage Improvement Act to any owner who
    |
0016|     objects to, contests or appeals the amount, correctness,
    |
0017|     regularity or validity of the reassessment:
    |
0018|                    (1)  are declared to exclude any other right,
    |
0019|     remedy, suit or action either at law or in equity that might
    |
0020|     otherwise be available; and
    |
0021|                    (2)  do afford the owner a sufficient day in
    |
0022|     court for the redressing of all rights and grievances that he
    |
0023|     may have in connection with the reassessment.
    |
0024|               B.  Any person who fails to file an objection to a
    |
0025|     reassessment in the manner provided in Section 19 of the Flood
    |
<center>- 43 -</center>

0001|     Control and Drainage Improvement District Act or fails to appeal
    |
0002|     to the district court in the manner provided in Section 32 of
    |
0003|     that act is forever absolutely barred from objecting to or
    |
0004|     contesting the amount, correctness, regularity or validity of
    |
0005|     the reassessment.
    |
0006|          Section 35.  IMPROVEMENT DISTRICT--APPLICATION OF
    |
0007|     REASSESSMENT FUND TO OUTSTANDING INDEBTEDNESS.--
    |
0008|               A.  Whenever the authority has:
    |
0009|                    (1)  issued bonds or assignable certificates to
    |
0010|     obtain money to pay for an improvement that has been
    |
0011|     constructed; and
    |
0012|                    (2)  reassessed the tract or parcel of land
    |
0013|     benefiting from the improvement as provided in Sections 30
    |
0014|     through 34 of the Flood Control and Drainage Improvement
    |
0015|     District Act, the authority shall apply all money received from
    |
0016|     the payment of the reassessment to the payment of the bonds or
    |
0017|     assignable certificates.
    |
0018|               B.  Bonds or assignable certificates that have been
    |
0019|     issued to obtain money to pay for any improvement that has been
    |
0020|     constructed are:
    |
0021|                    (1)  valid and binding obligations of the
    |
0022|     authority; and
    |
0023|                    (2)  payable from the payments received from any
    |
0024|     reassessment that shall be levied until all obligations of
    |
0025|     indebtedness of the improvement have been paid in full.
    |
<center>- 44 -</center>

0001|          Section 36.  IMPROVEMENT DISTRICT--REFUNDING IMPROVEMENT
    |
0002|     BONDS--AUTHORITY.--
    |
0003|               A.  As used in this section and in Sections 37
    |
0004|     through 39 of the Flood Control and Drainage Improvement
    |
0005|     District Act "bonds", when not modified by the word "refunding",
    |
0006|     includes assignable certificates.
    |
0007|               B.  The board may issue refunding improvement
    |
0008|     district bonds to refund all or any part of improvement district
    |
0009|     bonds.  Refunding bonds may be issued:
    |
0010|                    (1)  to change the payment schedule for the
    |
0011|     bonds;
    |
0012|                    (2)  to fund principal and interest due on bonds
    |
0013|     that are in default or for which there is not and, in the
    |
0014|     opinion of the governing body, will not be sufficient money
    |
0015|     available to pay the principal and interest when due;
    |
0016|                    (3)  to reduce interest costs on the bonds or on
    |
0017|     the assessments providing security for the bonds or to provide
    |
0018|     other savings;
    |
0019|                    (4)  to modify or eliminate restrictive or
    |
0020|     burdensome contractual limitations concerning the bonds;
    |
0021|                    (5)  to provide enhanced or substitute security
    |
0022|     for the bonds; or
    |
0023|                    (6)  to provide for any other reasonable and
    |
0024|     necessary purpose or any combination of the foregoing purposes.
    |
0025|          Section 37.  REFUNDING BONDS--ESCROW--DETAIL.--
    |
<center>- 45 -</center>

0001|               A.  Refunding bonds issued pursuant to Sections 36
    |
0002|     through 39 of the Flood Control and Drainage Improvement
    |
0003|     District Act shall be authorized by resolution.  Any bonds that
    |
0004|     are refunded under the provisions of this section shall be paid
    |
0005|     at maturity or on any permitted prior redemption date in the
    |
0006|     amounts at the time and places and, if called prior to maturity,
    |
0007|     in accordance with any applicable notice provisions, all as
    |
0008|     provided in the resolution authorizing the issuance of the
    |
0009|     refunded bonds or otherwise appertaining thereto, except for any
    |
0010|     such bond that is voluntarily surrendered for exchange or
    |
0011|     payment by the holder or owner.
    |
0012|               B.  Provisions shall be made for paying the refunded
    |
0013|     bonds at the time or times provided in Subsection A of this
    |
0014|     section.
    |
0015|               C.  The proceeds of refunding bonds, including any
    |
0016|     accrued interest and premium appertaining to the sale of
    |
0017|     refunding bonds, shall either be immediately applied to the
    |
0018|     retirement of the refunded bonds or be placed in escrow in a
    |
0019|     commercial bank or trust company that possesses and is
    |
0020|     exercising trust powers and that is a member of the federal
    |
0021|     deposit insurance corporation, to be applied to the payment of
    |
0022|     the principal of, interest on and any prior redemption premium
    |
0023|     due in connection with the refunded bonds; provided that such
    |
0024|     refunding bond proceeds, including any accrued interest and any
    |
0025|     premium appertaining to a sale of refunding bonds, may be
    |
<center>- 46 -</center>

0001|     applied to the establishment and maintenance of a reserve fund
    |
0002|     and to the payment of expenses incidental to the refunding and
    |
0003|     the issuance of the refunding bonds, the interest thereon and
    |
0004|     the principal thereof or both interest and principal as the
    |
0005|     authority may determine.  Nothing in this section requires the
    |
0006|     establishment of an escrow if the refunded bonds become due and
    |
0007|     payable within one year from the date of the refunding bonds and
    |
0008|     if the amounts necessary to retire the refunded bonds within
    |
0009|     that time are deposited with the paying agent for the refunded
    |
0010|     bonds.  Any such escrow shall not necessarily be limited to
    |
0011|     proceeds of refunding bonds but may include other money
    |
0012|     available for its purpose.  Any proceeds in escrow pending such
    |
0013|     use may be invested or reinvested in bills, certificates of
    |
0014|     indebtedness, notes or bonds that are direct obligations of or
    |
0015|     the principal and interest of which obligations are
    |
0016|     unconditionally guaranteed by the United States or in
    |
0017|     certificates of deposit of banks that are members of the federal
    |
0018|     deposit insurance corporation, the par value of which
    |
0019|     certificates of deposit is collateralized by a pledge of
    |
0020|     obligations of or the payment of which is unconditionally
    |
0021|     guaranteed by the United States, the par value of which
    |
0022|     obligations is at least seventy-five percent of the par value of
    |
0023|     the certificates of deposit.  Such proceeds and investments in
    |
0024|     escrow together with any interest or other income to be derived
    |
0025|     from any such investment shall be in an amount at all times
    |
<center>- 47 -</center>

0001|     sufficient as to principal, interest, any prior redemption
    |
0002|     premium due and any charges of the escrow agent payable
    |
0003|     therefrom to pay the refunded bonds as they become due at their
    |
0004|     respective maturities or due at any designated prior redemption
    |
0005|     date or dates in connections with which the authority shall
    |
0006|     exercise a prior redemption option.  Any purchaser of any
    |
0007|     refunding bond issued under Sections 36 through 39 of the Flood
    |
0008|     Control and Drainage Improvement District Act is in no manner
    |
0009|     responsible for the application of the proceeds thereof by the
    |
0010|     authority or any of its officers, agents or employees.
    |
0011|          Section 38.  IMPROVEMENT DISTRICT--RESOLUTION FOR REFUNDING
    |
0012|     BONDS--CONDITIONS--SALE OR EXCHANGE.--
    |
0013|               A.  The resolution authorizing the issuance of
    |
0014|     refunding bonds for an improvement district shall describe the:
    |
0015|                    (1)  details of the issue;
    |
0016|                    (2)  form of the refunding bonds and interest
    |
0017|     coupons, if any;
    |
0018|                    (3)  fund from which the principal and interest
    |
0019|     of the refunding bonds will be paid; and
    |
0020|                    (4)  manner in which the bonds are to be issued.
    |
0021|               B.  The refunding bonds may:
    |
0022|                    (1)  be issued in an amount less than, equal to
    |
0023|     or greater than the principal amount of improvement district
    |
0024|     bonds being refunded;
    |
0025|                    (2)  not bear a rate of interest greater than
    |
<center>- 48 -</center>

0001|     the rate of interest borne by the assessments providing security
    |
0002|     for the refunding bonds if secured by assessments;
    |
0003|                    (3)  become due and payable in regular numerical
    |
0004|     order;
    |
0005|                    (4)  not be issued for a period of more than
    |
0006|     twenty years from the date of issuance; and
    |
0007|                    (5)  be payable from substitute security or from
    |
0008|     the same funds that were applicable to the payment of the bonds
    |
0009|     being refunded.
    |
0010|               C.  The refunding bonds may be:
    |
0011|                    (1)  sold at a public or private sale at a
    |
0012|     discount; or
    |
0013|                    (2)  exchanged, dollar for dollar, for the
    |
0014|     improvement district bonds being refunded.
    |
0015|          Section 39.  IMPROVEMENT DISTRICT--PAYMENT OF ASSESSMENT
    |
0016|     FOR REFUNDING BOND--MAXIMUM TERM--INTEREST--PREPAYMENT--LIENS.--
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0017|               A.  In connection with issuance of refunding bonds as
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0018|     provided in Sections 36 through 39 of the Flood Control and
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0019|     Drainage Improvement District Act, the board may by resolution
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0020|     provide that any unpaid assessment and accrued interest on the
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0021|     assessment shall be paid in not more than twenty years with
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0022|     interest at a rate of interest not less than the rate borne by
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0023|     the refunding bonds and with the penalties as lawfully attached
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0024|     to the original assessment.  The owner of a tract or parcel of
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0025|     land that is assessed may at any time pay the assessment in full
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0001|     with interest to the time of payment.
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0002|               B.  The assessment may be collected as provided in
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0003|     Section 20 of the Flood Control and Drainage Improvement
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0004|     District Act and the refunding bonds may be secured and enforced
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0005|     as the original lien was established as provided in that
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0006|     section.
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0007|          Section 40.  IMPROVEMENT DISTRICT--CONSTRUCTION OF
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0008|     SECTIONS.--Nothing contained in Sections 36 through 39 of the
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0009|     Flood Control and Drainage Improvement District Act shall be
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0010|     construed as:
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0011|               A.  increasing the burden or liability of any tract
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0012|     or parcel of land or the owner of any tract or parcel of land;
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0013|     or
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0014|               B.  except for issuance of the refunding bonds,
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0015|     creating any additional liability of the authority.
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0016|                               
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