S.B. No. 1326
                                        AN ACT
    1-1  relating to the creation, administration, powers, and authority of
    1-2  the Chambers County Improvement District No. 1; granting the
    1-3  authority to issue bonds.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  CREATION; LEGISLATIVE DECLARATION.  (a)  There is
    1-6  created a special district to be known as the Chambers County
    1-7  Improvement District No. 1.  The district is a governmental agency,
    1-8  a body politic and corporate, and a political subdivision of the
    1-9  state.
   1-10        (b)  The name of the district may be changed by resolution of
   1-11  the board of directors of the district at any time so long as the
   1-12  name is descriptive of the location and the principal powers of the
   1-13  district.
   1-14        (c)  The creation of the district is essential to accomplish
   1-15  the purposes of Article III, Section 52, Article XVI, Section 59,
   1-16  and Article III, Section 52-a, of the Texas Constitution and to
   1-17  accomplish the other purposes of this Act.
   1-18        (d)  The legislature finds, determines, and declares that the
   1-19  creation of the district is necessary to:
   1-20              (1)  diversify the economy of the state;
   1-21              (2)  promote, develop, expand, encourage, and maintain
   1-22  employment, commerce, economic development, and the public welfare;
   1-23              (3)  promote the control, treatment, storage, and
    2-1  distribution of water;
    2-2              (4)  protect, preserve, and restore the sanitary
    2-3  conditions of water;
    2-4              (5)  promote the transportation of agricultural,
    2-5  industrial, and commercial products;
    2-6              (6)  promote the health, safety, and general welfare
    2-7  of:
    2-8                    (A)  property owners, residents, employers, and
    2-9  employees in the district; and
   2-10                    (B)  the general public;
   2-11              (7)  promote the improvement of rivers, bays, creeks,
   2-12  streams, and canals to permit or to aid navigation and commerce;
   2-13  and
   2-14              (8)  promote the construction, maintenance, and
   2-15  operation of streets, roads, highways, turnpikes, and railroads in
   2-16  the greater Cedar Crossing area of Chambers County.
   2-17        (e)  The district will provide funding in the greater Cedar
   2-18  Crossing area needed to preserve, maintain, and enhance the
   2-19  economic health and vitality of the area as a community and a
   2-20  business and industrial center.
   2-21        (f)  The district will not act as the agent or
   2-22  instrumentality of a private interest even though many private
   2-23  interests will be benefited by the district, as will the general
   2-24  public.
   2-25        (g)  The legislature finds, determines, and intends that by
    3-1  creating the district it has established a program to accomplish
    3-2  the public purposes set out in Article III, Section 52-a, of the
    3-3  Texas Constitution.
    3-4        (h)  The legislature finds that all of the land and other
    3-5  property included within the boundaries of the district will be
    3-6  benefited by the improvements and services to be provided by the
    3-7  district under powers conferred by Article III, Section 52, Article
    3-8  XVI, Section 59, and Article III, Section 52-a, of the Texas
    3-9  Constitution, and other powers granted under this Act, and that the
   3-10  district is created to serve a public use and benefit.
   3-11        (i)  This Act shall be liberally construed in conformance
   3-12  with the legislative findings and purposes stated in this Act.
   3-13        SECTION 2.  DEFINITIONS.  In this Act:
   3-14              (1)  "Board" means the board of directors of the
   3-15  Chambers County Improvement District No. 1.
   3-16              (2)  "District" means the Chambers County Improvement
   3-17  District No. 1.
   3-18              (3)  "Extraterritorial jurisdiction" has the meaning
   3-19  assigned by Section 42.021, Local Government Code.
   3-20        SECTION 3.  BOUNDARIES.  The district includes all of the
   3-21  territory contained within the following described area:
   3-22        BEING approximately 13,900 acres of land situated in Chambers
   3-23  County, Texas, and being out of and a part of the Christian Smith
   3-24  League, Abstract No. 22, the Thomas Shepherd Survey, Abstract No.
   3-25  229, the Chambers County School Land Survey, Abstract No. 321, the
    4-1  Solomon Barrow Survey, Abstract No. 3, the John Steele Survey,
    4-2  Abstract No. 227, the J. L. Hill Survey, Abstract No. 106, the J.
    4-3  K. Allen Survey, Abstract No. 31, the J. C. Fisher Survey, Abstract
    4-4  No. 31, the W. D. Smith League, Abstract No. 23 and the John Ijams
    4-5  Survey, Abstract No. 15.  This tract of land is more particularly
    4-6  described by metes and bounds as follows, to-wit:
    4-7        BEGINNING at the Northeast corner of Tract No. 199-B, in the
    4-8  East line of the Chambers County School Land Survey, Abstract No.
    4-9  321 and in the West line of the Solomon Barrow Survey, Abstract No.
   4-10  3 and in the South right of way line of the Houston Lighting and
   4-11  Power Company Discharge Canal right of way.
   4-12        THENCE in a Southerly direction with the East line of this
   4-13  tract, the East line of the Chambers County School Land Survey and
   4-14  the West line of the Solomon Barrow Survey to the Northwest corner
   4-15  of Tract No. 100-A.
   4-16        THENCE in an Easterly and Southerly direction with the North
   4-17  and East lines of Tract No. 100-A to a point at the intersection of
   4-18  the North line of Tract No. 100-A with the East right of way line
   4-19  of F. M. Highway No. 2354.
   4-20        THENCE in a Southerly direction with the East right of way
   4-21  line of F. M. Highway No. 2354 to the intersection of the South
   4-22  right of way line of Fisher Road (Rice Farm Road) with the East
   4-23  right of way line of F. M. Highway No. 2354.
   4-24        THENCE in a Westerly direction with the South right of way
   4-25  line of Fisher Road to the most Northern Northeast corner of Tract
    5-1  No. 89.
    5-2        THENCE in a Southerly and Easterly direction with the East
    5-3  and North lines of Tract No. 89 to the Northwest corner of a 4.00
    5-4  acre tract of land conveyed to Chambers County.
    5-5        THENCE in a Southerly and Easterly direction with the West
    5-6  and South lines of the Chambers County 4.00 acre tract to the
    5-7  intersection of the projection of the South line of the Chambers
    5-8  County 4.00 acre tract with the East right of way line of F. M.
    5-9  Highway No. 2354.
   5-10        THENCE in a Southerly direction with the East right of way
   5-11  line  of F. M. Highway No. 2354 to a point at the intersection of
   5-12  the East right of way line of F. M. Highway No. 2354 with the South
   5-13  line, as extended, of a 0.9796 acre tract of land conveyed to
   5-14  United States Steel Corporation by G. E. Troxell, Jr., by deed
   5-15  recorded in Volume 283 at Page 454 of the Deed Records of Chambers
   5-16  County, Texas.
   5-17        THENCE in a Westerly direction with the South line of Tract
   5-18  No. 89M said Troxell tract to the Southwest corner of said Troxell
   5-19  tract in the East line of Tract No. 89M.
   5-20        THENCE in a Southerly direction with the East line of Tract
   5-21  No. 89M to the Southeast corner of Tract No. 89M in the North line
   5-22  of Tract No. 125.
   5-23        THENCE in a Easterly direction with the North line of Tract
   5-24  No. 125 to the East right of way line of F. M. Highway No. 2354.
   5-25        THENCE in a Southerly direction with the East right of way
    6-1  line of Highway No. 2354 to the South line of Tract No. 125.
    6-2        THENCE in a Westerly direction with the South line of Tract
    6-3  No. 125 to the Southwest corner of Tract No. 125 in the East line
    6-4  of Tract No. 119.
    6-5        THENCE in a Southerly direction with the East line of Tracts
    6-6  No. 119, 118, 117, 117A, 116 to the Southeast corner of Tract No.
    6-7  116 in the North line of Tract No. 114.
    6-8        THENCE in a Easterly direction with the North line of Tract
    6-9  No. 114 to the East right of way line of F. M. Highway No. 2354.
   6-10        THENCE in a Southerly direction with the East right of way
   6-11  line of F. M. Highway No. 2354 to South line of Tract No. 4-D as
   6-12  extended.
   6-13        THENCE in a Westerly direction with the South line of Tract
   6-14  No. 4-D to the most Northern Northeast corner of Tract No. 10-B.
   6-15        THENCE in a Southerly direction with the East and Northerly
   6-16  lines of Tract No. 10-B to a point at the intersection of the North
   6-17  line of Tract No. 10-B, as extended, with the East right of way
   6-18  line of F. M. Highway No. 2354.
   6-19        THENCE in a Southwesterly direction with the East and South
   6-20  right of way line of F. M. Highway No. 2354 to the intersection
   6-21  with the East right of way line of Live Oak Drive.
   6-22        THENCE in a Southwesterly direction with the East and South
   6-23  right of way line of Live Oak Drive to the intersection of the
   6-24  extended East line of the Nerco Oil and Gas Production Company 2.00
   6-25  acre tract with the South right of way line of Live Oak Drive.
    7-1        THENCE in a Northerly direction with the East line of the
    7-2  Nerco Oil and Gas 2.00 acre tract to the Northeast corner of said
    7-3  2.00 acre tract.
    7-4        THENCE in a Westerly direction with the North lines of the
    7-5  Nerco 2.00 acre tract, the Exxon 2.00 acre tract and the Exxon 5.00
    7-6  acre tract of land to the Northwest corner of the Exxon 5.00 acre
    7-7  tract of land.
    7-8        THENCE in a Southerly direction with the West line of the
    7-9  Exxon 5.00 acre tract to the Southwest corner of the Exxon 5.00
   7-10  acre tract and a corner of the Jones and Laughlin Tract No. 3.
   7-11        THENCE in a Westerly direction with the South and West lines
   7-12  of the Jones and Laughlin Tract No. 3 and the shore line of
   7-13  Galveston Bay and San Jacinto Bay and the West line of Tract No. 43
   7-14  to the Southeast or East shore line of Cedar Bayou.
   7-15        THENCE in a Northwesterly direction with the shore line of
   7-16  Cedar Bayou and the West line of Tracts No. 43, Atlantic Pipeline
   7-17  14.3427 acre and 43A to the Southwest corner of the Maurice Hirsch
   7-18  so-called 40.28 acre tract and Northwest corner of Tract No. 43A.
   7-19        THENCE in a Easterly direction with the South line of the
   7-20  Hirsch tract and the North line of Tract No. 43A to a point in the
   7-21  East right of way line of Tri-City Beach Road at the extension of
   7-22  the North line of Tract No. 43A.
   7-23        THENCE in a Southerly direction with the East line of
   7-24  Tri-City Beach Road to the West right of way line of F. M. Highway
   7-25  No. 1405.
    8-1        THENCE in a Northerly direction with the West right of way
    8-2  line of F. M. Highway No. 1405 to the Northeast corner of Tract No.
    8-3  37.
    8-4        THENCE in a Westerly direction with the North line of Tract
    8-5  No. 37 to the centerline of Cedar Bayou, being the County Line
    8-6  between Chambers and Harris Counties.
    8-7        THENCE in a Northerly direction with the centerline of Cedar
    8-8  Bayou and said County Line to a point at the intersection of the
    8-9  centerline of Cedar Bayou with the South line of the Warrior and
   8-10  Gulf 15.00 acre tract.
   8-11        THENCE in an Easterly, Northerly, Westerly and Southerly
   8-12  direction with the lines of the Warrior Gulf 15 acre tract and the
   8-13  Hoesch Tubular Products Company 25 acre tract lines to a point at
   8-14  the intersection of the West line of Hoesch 25 acre tract,
   8-15  extended, with the centerline of Cedar Bayou and said County Line.
   8-16        THENCE in a Northerly direction with the centerline of Cedar
   8-17  Bayou to the intersection of the centerline of Cedar Bayou with the
   8-18  extension of the South line of Johnnie and Rosemary Jennings
   8-19  property.
   8-20        THENCE in a Easterly, Northerly and Westerly direction around
   8-21  the Jennings property to the intersection of the North line of the
   8-22  Jennings property extended with the centerline of Cedar Bayou and
   8-23  said County Line.
   8-24        THENCE in a Northerly direction with the centerline of Cedar
   8-25  Bayou to the intersection of the centerline of Cedar Bayou with the
    9-1  South line, extended, of a Tract conveyed to McDonugh Company.
    9-2        THENCE in an Easterly direction with the South line of the
    9-3  McDonugh Company tract to a point for the Southeast corner of the
    9-4  McDonugh Company tract in the West right of way line of West Bay
    9-5  Road (Old F. M. Highway No. 1405).
    9-6        THENCE in a Northerly direction with the West right of way
    9-7  line of West Bay Road to a point at the intersection of the North
    9-8  line, extended, of Tract No. 35-X.
    9-9        THENCE in a Easterly direction with the North line of Tract
   9-10  No. 35-X to the Northeast corner of Tract No. 35-X and in the West
   9-11  right of way line of Houston Lighting and Power Company 330 foot
   9-12  right of way and in the West line of Tract No. 5-D.
   9-13        THENCE in a Northerly direction with the West line of Tract
   9-14  No. 5-D and the West line of said 330 foot right of way to a point
   9-15  in the North right of way line of West Bay Road.
   9-16        THENCE in an Easterly direction with the North right of way
   9-17  line of West Bay Road to a point for a corner of Tract No. 5-D
   9-18  being in the East right of way line of the old right of way for
   9-19  West Bay Road.
   9-20        THENCE in an Easterly direction with the North line of Tract
   9-21  No. 5-D to the intersection with the South right of way line of the
   9-22  Houston Lighting and Power Company Discharge Canal.
   9-23        THENCE in an Easterly direction with the South right of way
   9-24  line of the Houston Lighting and Power Company Discharge Canal to
   9-25  the Northwest corner of a 21.2152 acre tract of land conveyed to
   10-1  Houston Lighting and Power Company.
   10-2        THENCE in a Southerly direction with the West line of said
   10-3  21.2152 acre tract to the Southwest corner of said 21.2152 acre
   10-4  tract of land.
   10-5        THENCE in an Easterly direction with the South line of said
   10-6  21.2152 acre tract to the Southeast corner of said 21.2152 acre
   10-7  tract of land in the West line of the Coastal Water Authority 5.115
   10-8  acre tract of land.
   10-9        THENCE in a Southerly, Easterly and Northerly direction
  10-10  around said Coastal Water Authority 5.115 acre tract to a point for
  10-11  the Northeast corner of said 5.115 acre tract in the South right of
  10-12  way line of the Houston Lighting and Power Company Discharge Canal
  10-13  right of way.
  10-14        THENCE in an Easterly direction with the South line of the
  10-15  Houston Lighting and Power Company Discharge Canal right of way to
  10-16  the PLACE OF BEGINNING, containing within said boundaries
  10-17  approximately 13,900 acres of land.
  10-18        SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature
  10-19  finds that the boundaries and field notes of the district form a
  10-20  closure.  If a mistake is made in the field notes or in copying the
  10-21  field notes in the legislative process, it does not affect the
  10-22  organization, existence, or validity of the district, the right of
  10-23  the district to issue any type of bonds or to issue or enter into
  10-24  other types of obligations for the purposes for which the district
  10-25  is created, or the right of the district to levy and collect
   11-1  assessments or taxes, or affect in any manner the legality or
   11-2  operation of the district or its governing body.
   11-3        SECTION 5.  BOARD OF DIRECTORS.  (a)  The district is
   11-4  governed by a board of seven directors.
   11-5        (b)  Except for the initial directors, the commissioners
   11-6  court of Chambers County shall appoint directors to represent a
   11-7  director district in the manner provided in Section 375.064, Local
   11-8  Government Code, from a list of candidates recommended by the board
   11-9  in the manner provided in Section 375.064, Local Government Code.
  11-10  Directors serve staggered four-year terms.  A vacancy in the office
  11-11  of director shall be filled by the remaining directors for the
  11-12  remainder of the unexpired term.
  11-13        (c)  On the effective date of this Act, the following persons
  11-14  constitute the initial board of directors of the district and are
  11-15  appointed for the terms prescribed by Subsection (d) of this
  11-16  section to represent the following director district positions:
  11-17       Director District Position         Name of Director
  11-18                   1                        Deborah S. Hsi
  11-19                   2                        Kandy K. Gregory
  11-20                   3                        Langston H. Wood
  11-21                   4                        Joseph S. Antoline
  11-22                   5                        Donald E. Simpson
  11-23                   6                        Robert B. Brown, Jr.
  11-24                   7                        Robert Douglas Gates
  11-25        (d)  The initial directors appointed for director district
   12-1  positions 1 through 3 serve until May 1, 1995, and the initial
   12-2  directors appointed for director district positions 4 through 7
   12-3  serve until May 1, 1997.
   12-4        (e)  Each director appointed by the commissioners court of
   12-5  Chambers County shall meet the qualifications for directors
   12-6  provided by Section 375.063, Local Government Code, for the area
   12-7  included within the boundaries of the director district which such
   12-8  director represents and no person may be appointed as a director or
   12-9  continue to serve as a director unless the person satisfies the
  12-10  requirements set forth in Section 375.063 for the area in the
  12-11  director district such person is appointed to represent.  Each
  12-12  director shall qualify for office as required by Subchapter D,
  12-13  Chapter 375, Local Government Code.
  12-14        (f)  The board is governed by Subchapter D, Chapter 375,
  12-15  Local Government Code, to the extent that subchapter does not
  12-16  conflict with this Act.  Directors may vote on any matter
  12-17  authorized by Subchapter D, Chapter 375, Local Government Code;
  12-18  however, action may only be taken by the board if it is approved in
  12-19  the manner prescribed by Subchapter D, Chapter 375, Local
  12-20  Government Code.
  12-21        (g)  Each position on the board represents a separate area of
  12-22  the district to be known as a director district.  As soon as
  12-23  possible after the effective date of this Act, the board shall
  12-24  establish the boundaries of the director districts over areas in
  12-25  the district that in the board's judgment provide a reasonable
   13-1  balance in the board representation between acreage, value,
   13-2  improvements, and interests of the property owners in the district.
   13-3  All land in the district shall be in a director district.  Director
   13-4  districts may not overlap.  The board from time to time may
   13-5  establish new boundaries for one or more director districts if it
   13-6  is necessary to provide a reasonable balance in the board
   13-7  representation between acreage, value, improvements, and interests
   13-8  of the property owners in the district.
   13-9        (h)  Directors shall be compensated in the manner provided by
  13-10  Section 54.114, Water Code.
  13-11        SECTION 6.  GENERAL POWERS.  (a)  The district has all of the
  13-12  rights, powers, privileges, and authority conferred by the general
  13-13  law of this state applicable to districts created under Chapter
  13-14  375, Local Government Code; Chapter 54, Water Code; Chapter 13,
  13-15  Acts of the 68th Legislature, 2nd Called Session, 1984 (Article
  13-16  6674r-1, Vernon's Texas Civil Statutes); and Chapter 623, Acts of
  13-17  the 67th Legislature, Regular Session, 1981 (Article 6550c,
  13-18  Vernon's Texas Civil Statutes).  The district also has the rights,
  13-19  powers, privileges, and authority granted to districts by
  13-20  Subchapters E and M, Chapter 60, Water Code, and Section 61.116,
  13-21  Water Code.  Bonds or other obligations issued under any of those
  13-22  laws may be secured by revenues, assessments, ad valorem taxes,
  13-23  impact fees, grants, or other funds of the district, or any
  13-24  combination of those funds.  The district also has all of those
  13-25  powers granted to municipal management districts under Sections
   14-1  375.092 and 375.111, Local Government Code, to provide any services
   14-2  or for any project the district is authorized to acquire,
   14-3  construct, or improve under this Act.  The district may acquire any
   14-4  interest in land in accordance with Chapter 54, Water Code.  If any
   14-5  provision of the referenced laws is in conflict with or is
   14-6  inconsistent with this Act, this Act prevails.  All laws or
   14-7  provisions of laws referenced in the Act and subsequent amendments
   14-8  of those laws are adopted and incorporated into this Act for all
   14-9  purposes and may be used by the district independently of each
  14-10  other.
  14-11        (b)  The district may finance the cost of any authorized
  14-12  improvement project or services in the manner provided by any law
  14-13  made applicable to the district.  A petition under Section 375.114,
  14-14  Local Government Code, is not required for the board to be
  14-15  authorized to levy taxes, assessments, or impact fees to finance
  14-16  services and improvement projects under this Act.
  14-17        (c)  If the district, in exercising a power conferred by this
  14-18  Act, requires a relocation, adjustment, raising, lowering,
  14-19  rerouting, or changing the grade of or altering the construction of
  14-20  any street, alley, highway, overpass, underpass, road, railroad
  14-21  track, bridge, facility, or property, electric line, conduit,
  14-22  facility, or property, telephone or telegraph line, conduit,
  14-23  facility, or property, gas transmission or distribution pipe,
  14-24  pipeline, main, facility, or property, water, sanitary sewer or
  14-25  storm sewer pipe, pipeline, main, facility, or property, cable
   15-1  television line, cable, conduit, facility, or property, or other
   15-2  pipeline or facility or property relating to the pipeline, that
   15-3  relocation, adjustment, raising, lowering, rerouting, changing of
   15-4  grade, or altering of construction must be accomplished at the sole
   15-5  cost and expense of the district, and damages that are suffered by
   15-6  owners of the property or facilities shall be borne by the
   15-7  district.
   15-8        (d)  The district may not own or operate an airport.
   15-9        (e)  The board shall establish by resolution the number of
  15-10  director signatures or the procedure required for all disbursements
  15-11  or transfers of the district's money.
  15-12        SECTION 7.  TORT CLAIMS.  The district is a unit of
  15-13  government for purposes of Chapter 101, Civil Practice and Remedies
  15-14  Code.  The operations of the district are essential governmental
  15-15  functions for all purposes and not proprietary functions.
  15-16        SECTION 8.  ANNEXATION AND EXCLUSION OF TERRITORY BY THE
  15-17  DISTRICT.  The district may annex land to and exclude land from the
  15-18  district as provided by Chapter 54, Water Code.  The district may
  15-19  not annex land in a municipality's extraterritorial jurisdiction
  15-20  unless the municipality consents to the annexation.
  15-21        SECTION 9.  MUNICIPAL ANNEXATION OF THE DISTRICT.  A
  15-22  municipality in whose extraterritorial jurisdiction the district is
  15-23  located may annex all or part of the district, notwithstanding any
  15-24  provision of Chapter 43, Local Government Code.  Annexation does
  15-25  not result in total or partial dissolution of the district or an
   16-1  assumption by the annexing municipality of any of the district's
   16-2  obligations or indebtedness.  Creation of the district does not
   16-3  affect the power of a municipality in whose extraterritorial
   16-4  jurisdiction the district or part of the district lies to designate
   16-5  all or part of the district as an industrial district or to limit a
   16-6  power of the municipality conferred by Chapter 42, Local Government
   16-7  Code.  Creation  of the district does not affect the power of a
   16-8  municipality to provide municipal services to any area in the
   16-9  municipality or its extraterritorial jurisdiction that is in the
  16-10  district and such municipality shall have the same power to extend
  16-11  or provide municipal services after the creation of the district as
  16-12  it had before its creation.  A municipal annexation of all or part
  16-13  of the district has no effect on the validity of the district and
  16-14  the district shall continue to exist and exercise the powers
  16-15  granted by this Act.
  16-16        SECTION 10.  BONDS AND ASSESSMENTS.  (a)  The district may
  16-17  issue bonds or other obligations payable in whole or in part from
  16-18  ad valorem taxes, assessments, impact fees, revenues, grants, or
  16-19  other funds of the district, or any combination of those funds, to
  16-20  pay for any authorized purpose of the district.  Bonds or other
  16-21  obligations of the district may be issued in the form of bonds,
  16-22  notes, certificates of participation, including other instruments
  16-23  evidencing a proportionate interest in payments to be made by the
  16-24  district, or other obligations that are issued in the exercise of
  16-25  the district's borrowing power and may be issued in bearer or
   17-1  registered form or not represented by an instrument but the
   17-2  transfer of which is registered on books maintained by or on behalf
   17-3  of the district.  The board may levy and collect an assessment
   17-4  under Subchapter F, Chapter 375, Local Government Code, for any
   17-5  authorized purpose only if the assessment does not conflict with
   17-6  other provisions of this Act.
   17-7        (b)  No approval of bonds issued by the district is required
   17-8  other than the approval of the attorney general as provided by
   17-9  Section 375.205, Local Government Code, and the approval of the
  17-10  Texas Water Commission if the bonds are issued for a purpose that
  17-11  Section 375.208, Local Government Code, requires to be approved by
  17-12  the commission.
  17-13        (c)  Assessments or reassessments by the district, penalties
  17-14  and interest on an assessment or reassessment, expenses of
  17-15  collection, and reasonable attorney fees incurred by the district
  17-16  are a first and prior lien against the property assessed, are
  17-17  superior to any other lien or claim other than a lien or claim for
  17-18  county, school district, or municipal ad valorem taxes, and are the
  17-19  personal liability of and charge against the owners of the property
  17-20  even if the owners are not named in the assessment proceedings.
  17-21  The lien is effective from the date of the resolution of the board
  17-22  levying the assessment until the assessment is paid.  The board may
  17-23  enforce the lien in the same manner that the board may enforce an
  17-24  ad valorem tax lien against real property.
  17-25        (d)  Bonds payable from an ad valorem tax levied over the
   18-1  entire district may not be issued in an amount in excess of the
   18-2  greater of (1) $50 million, or (2) 10 percent of the assessed value
   18-3  of taxable property within the entire district as shown on the most
   18-4  recent certified tax rolls of the county central appraisal
   18-5  district, unless the Texas Water Commission approves the bonds as
   18-6  to feasibility, in which case, the limit on the amount of bonds to
   18-7  be issued shall be that amount set by the Texas Water Commission.
   18-8  This provision will not limit the authority of the district to
   18-9  issue bonds which are not payable from ad valorem taxes levied over
  18-10  the entire district.
  18-11        SECTION 11.  ELECTIONS.  The district shall hold elections as
  18-12  provided by Subchapter L, Chapter 375, Local Government Code.  The
  18-13  district shall also hold an election in the manner provided by that
  18-14  subchapter for the purpose of obtaining voter approval for the
  18-15  district to levy a maintenance tax or to issue bonds payable from
  18-16  ad valorem taxes or assessments.  The board may submit multiple
  18-17  purposes in a single proposition at an election.
  18-18        SECTION 12.  IMPACT FEES.  The district may impose an impact
  18-19  fee for an authorized purpose as provided by Subchapter G, Chapter
  18-20  375, Local Government Code.  The district may not impose an impact
  18-21  fee or assessment on a single-family residential property or a
  18-22  residential duplex, triplex, quadruplex, or condominium.
  18-23        SECTION 13.  MAINTENANCE TAX.  If authorized at an election
  18-24  held in accordance with Section 11 of this Act, the district may
  18-25  levy and collect an annual ad valorem tax on taxable property in
   19-1  the district for maintenance, operation, and upkeep of the district
   19-2  and the improvements constructed or acquired by the district and
   19-3  the provision of services to industrial and commercial businesses
   19-4  and residents and property owners.  The board shall determine the
   19-5  tax rate.
   19-6        SECTION 14.  DISSOLUTION OF THE DISTRICT.  The district may
   19-7  be dissolved as provided in Section 375.261 or 375.262, Local
   19-8  Government Code.  If the district is dissolved, the district shall
   19-9  remain in existence solely for the limited purpose of discharging
  19-10  its bonds or other obligations according to their terms.
  19-11        SECTION 15.  CONTRACTS FOR SECURITY SERVICES.  To protect the
  19-12  public interest, the district may contract with a private entity or
  19-13  a municipality, county, or other political subdivision for services
  19-14  for the security and protection of residents and property in the
  19-15  district.
  19-16        SECTION 16.  COMPETITIVE BIDDING.  The district shall
  19-17  contract for services, improvements, or the purchase of materials,
  19-18  machinery, equipment, supplies, or other property in excess of
  19-19  $25,000 as provided by Section 375.221, Local Government Code, or
  19-20  Subchapter I, Chapter 49, Water Code, as added by H.B. No. 1266,
  19-21  Acts of the 73rd Legislature, Regular Session, 1993.
  19-22        SECTION 17.  NOTICE AND CONSENT.  The legislature finds that:
  19-23              (1)  proper and legal notice of the intention to
  19-24  introduce this Act, setting forth the general substance of this
  19-25  Act, has been published as provided by law, and the notice and a
   20-1  copy of this Act have been furnished to all persons, agencies,
   20-2  officials, or entities to which they are required to be furnished
   20-3  by the constitution and laws of this state, including the Governor
   20-4  of Texas, who has submitted the notice and Act to the Texas Water
   20-5  Commission;
   20-6              (2)  the Texas Water Commission has filed its
   20-7  recommendations relating to this Act with the governor, lieutenant
   20-8  governor, and speaker of the house of representatives within the
   20-9  required time;
  20-10              (3)  the general law relating to consent by political
  20-11  subdivisions to the creation of districts with conservation,
  20-12  reclamation, and road powers and the inclusion of land in those
  20-13  districts has been complied with; and
  20-14              (4)  all requirements of the constitution and laws of
  20-15  this state and the rules and procedures of the legislature with
  20-16  respect to the notice, introduction, and passage of this Act have
  20-17  been fulfilled and accomplished.
  20-18        SECTION 18.  SEVERABILITY CLAUSE.  The provisions of this Act
  20-19  are severable, and if any provision or part of this Act or the
  20-20  application thereof to any person or circumstance is held by a
  20-21  court of competent jurisdiction to be invalid or unconstitutional
  20-22  for any reason, the remainder of this Act and the application of
  20-23  that provision or part of this Act to other persons or
  20-24  circumstances is not affected.
  20-25        SECTION 19.  EMERGENCY.  The importance of this legislation
   21-1  and the crowded condition of the calendars in both houses create an
   21-2  emergency and an imperative public necessity that the
   21-3  constitutional rule requiring bills to be read on three several
   21-4  days in each house be suspended, and this rule is hereby suspended.