1-1  By:  Ellis                                            S.B. No. 1620
    1-2        (In the Senate - Filed March 23, 1995; March 27, 1995, read
    1-3  first time and referred to Committee on Intergovernmental
    1-4  Relations; April 12, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 10, Nays 0;
    1-6  April 12, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1620                   By:  Ellis
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the creation, administration, powers, and duties of the
   1-11  Houston Downtown Management District; granting the authority to
   1-12  issue bonds; authorizing a tax.
   1-13        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-14        SECTION 1.  CREATION OF DISTRICT.  (a)  A special district to
   1-15  be known as the "Houston Downtown Management District" exists as a
   1-16  governmental agency, body politic and corporate, and political
   1-17  subdivision of the state.
   1-18        (b)  The name of the district may be changed by resolution of
   1-19  the board.
   1-20        (c)  The creation of the district is essential to accomplish
   1-21  the purposes of Section 52, Article III, Section 59, Article XVI,
   1-22  and Section 52-a, Article III, Texas Constitution, and other public
   1-23  purposes stated in this Act.
   1-24        SECTION 2.  LEGISLATIVE DECLARATION.  (a)  The legislature
   1-25  finds and declares that the creation of the district is necessary
   1-26  to promote, develop, encourage, and maintain employment, commerce,
   1-27  transportation, housing, tourism, recreation, arts, entertainment,
   1-28  economic development, safety, and the public welfare in the
   1-29  downtown area of the City of Houston.
   1-30        (b)  It is the legislature's intent that the creation of the
   1-31  district and this legislation not be interpreted to relieve Harris
   1-32  County or the City of Houston from providing the present level of
   1-33  services to the area included within the district or to release the
   1-34  county or the city from the obligations each entity has to provide
   1-35  services to that area.  The district is created to supplement and
   1-36  not supplant the city or county services provided in the area
   1-37  included within the district.
   1-38        (c)  The legislature finds and intends that by creating the
   1-39  district and in authorizing the city, county, and other political
   1-40  subdivisions to contract with the district the legislature has
   1-41  established a program to accomplish the public purposes set out in
   1-42  Section 52-a, Article III, Texas Constitution.
   1-43        SECTION 3.  DEFINITIONS.  In this Act:
   1-44              (1)  "Board" means the board of directors of the
   1-45  district.
   1-46              (2)  "District" means the Houston Downtown Management
   1-47  District.
   1-48              (3)  "City" means the City of Houston, Texas.
   1-49              (4)  "County" means Harris County, Texas.
   1-50        SECTION 4.  BOUNDARIES.  The district includes all the
   1-51  territory contained within the following described area:
   1-52        705 acres, more or less, in the J. Austin Survey, Abstract 1,
   1-53  the J.S. Holman Survey, Abstract 323, the O. Smith Survey, Abstract
   1-54  696, and the J. Wells Survey, Abstract 832, Harris County, Texas,
   1-55  more particularly described as follows:
   1-56        BEGINNING at the intersection of the center line of the
   1-57  right-of-way of Commerce Avenue with the center line of the
   1-58  right-of-way of Austin Street;
   1-59        Thence in a southwesterly direction with the center line of
   1-60  the right-of-way of Austin street to the intersection with the
   1-61  center line of the right-of-way of Capitol Avenue;
   1-62        Thence in a southeasterly direction with the center line of
   1-63  the right-of-way of Capitol Avenue to the intersection with the
   1-64  center line of the right-of-way of Chartres Street;
   1-65        Thence in a southwesterly direction with the center line of
   1-66  the right-of-way of Chartres Street to the intersection with the
   1-67  center line of the right-of-way of Clay Avenue;
   1-68        Thence in a northwesterly direction with the center line of
    2-1  the right-of-way of Clay Avenue to the intersection with the center
    2-2  line of the right-of-way of Caroline Street;
    2-3        Thence in a southwesterly direction with the center line of
    2-4  the right-of-way of Caroline Street to the intersection with the
    2-5  center line of the right-of-way of Pierce Avenue;
    2-6        Thence in a northwesterly direction with the center line of
    2-7  the right-of-way of Pierce Avenue to the intersection with the
    2-8  center line of the right-of-way of Bagby Street;
    2-9        Thence in a northeasterly direction with the center line of
   2-10  the right-of-way of Bagby Street to the intersection with a
   2-11  southerly projection of the west line of the right-of-way of Heiner
   2-12  Street;
   2-13        Thence in a northerly direction with the west line of the
   2-14  right-of-way of Heiner Street and southerly and northerly
   2-15  projections thereof to the intersection with the center line of the
   2-16  right-of-way of W. Dallas Street;
   2-17        Thence in a westerly direction with the center line of the
   2-18  right-of-way of W. Dallas Street to the intersection with a
   2-19  southerly projection of the west line of the right-of-way of Heiner
   2-20  Street;
   2-21        Thence in a northerly direction with the west line of the
   2-22  right-of-way of Heiner Street and southerly and northerly
   2-23  projections thereof to the intersection with the center line of the
   2-24  right-of-way of Allen Parkway;
   2-25        Thence in an easterly direction with the center line of the
   2-26  right-of-way of Allen Parkway to the intersection with a southerly
   2-27  projection of the center line of the right-of-way of Sabine Street;
   2-28        Thence in a northerly direction with a southerly projection
   2-29  of the center line of the right-of-way of Sabine Street and then
   2-30  with the center line of the right-of-way of Sabine Street to the
   2-31  intersection with the north right-of-way line of Memorial Drive;
   2-32        Thence in an easterly direction with the north right-of-way
   2-33  line of Memorial Drive to the intersection with the west
   2-34  right-of-way line of Interstate Highway 45;
   2-35        Thence in a northeasterly direction with the west
   2-36  right-of-way line of Interstate Highway 45 to the intersection with
   2-37  the center line of the right-of-way of Franklin Avenue;
   2-38        Thence in an easterly direction with the center line of the
   2-39  right-of-way of Franklin Avenue to the intersection with a
   2-40  southerly projection of the center line of the northbound ramp to
   2-41  Interstate Highway 10, a continuation of Louisiana Street;
   2-42        Thence in a northerly direction with the center line of the
   2-43  right-of-way of the northbound ramp to Interstate Highway 10 and
   2-44  the southerly projection thereof, to the intersection with the
   2-45  center line of the Southern Pacific Rail Road's "Main Passenger
   2-46  Line" right-of-way;
   2-47        Thence in an easterly direction with the center line of the
   2-48  Southern Pacific Rail Road's "Main Passenger Line" right-of-way to
   2-49  the intersection with the center line of the right-of-way of North
   2-50  San Jacinto Street;
   2-51        Thence in a southerly direction with the center line of the
   2-52  right-of-way of North San Jacinto Street to the intersection with
   2-53  the center line of the right-of-way of Commerce Avenue;
   2-54        Thence in a southeasterly direction with the center line of
   2-55  the right-of-way of Commerce Avenue to The Point of Beginning,
   2-56  containing 705 acres, more or less, including, without limitation,
   2-57  all air space above and all subsurface below said property.
   2-58        SECTION 5.  FINDINGS RELATING TO BOUNDARIES.  The legislature
   2-59  finds that the boundaries and field notes of the district form a
   2-60  closure.  If a mistake is made in the field notes or in copying the
   2-61  field notes in the legislative process, the mistake does not in any
   2-62  way affect the:
   2-63              (1)  organization, existence, and validity of the
   2-64  district;
   2-65              (2)  right of the district to issue any type of bonds
   2-66  or refunding bonds for the purposes for which the district is
   2-67  created or to pay the principal of and interest on the bonds;
   2-68              (3)  right of the district to levy and collect
   2-69  assessments or taxes; or
   2-70              (4)  legality or operation of the district or its
    3-1  governing body.
    3-2        SECTION 6.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  The
    3-3  legislature finds that all of the land and other property included
    3-4  within the boundaries of the district will be benefited by the
    3-5  improvements and services to be provided by the district under
    3-6  powers conferred by Section 52, Article III, Section 59, Article
    3-7  XVI, and Section 52-a, Article III, Texas Constitution, and other
    3-8  powers granted under this Act, and that the district is created to
    3-9  serve a public use and benefit.
   3-10        (b)  The legislature finds that:
   3-11              (1)  the creation of the district is in the public
   3-12  interest and is essential to:
   3-13                    (A)  further the public purposes of the
   3-14  development and diversification of the economy of the state; and
   3-15                    (B)  eliminate unemployment and underemployment
   3-16  and develop or expand transportation and commerce;
   3-17              (2)  the district will promote the health, safety, and
   3-18  general welfare of residents, employers, employees, visitors,
   3-19  consumers in the district, and the general public;
   3-20              (3)  the district will provide needed funding for the
   3-21  city's downtown area to preserve, maintain, and enhance the
   3-22  economic health and vitality of the area as a community and
   3-23  business center; and
   3-24              (4)  the district will further promote the health,
   3-25  safety, welfare, and enjoyment of the public by providing
   3-26  pedestrian ways and by landscaping and developing certain areas
   3-27  within the district, which are necessary for the restoration,
   3-28  preservation, and enhancement of scenic and aesthetic beauty.
   3-29        (c)  The legislature finds and determines that pedestrian
   3-30  ways along or across a street, whether at grade or above or below
   3-31  the surface, and street lighting, street landscaping, and street
   3-32  art objects are parts of and necessary components of a street and
   3-33  are considered to be a street or road improvement.
   3-34        (d)  The district will not act as the agent or
   3-35  instrumentality of any private interest even though many private
   3-36  interests will be benefited by the district, as will the general
   3-37  public.
   3-38        SECTION 7.  APPLICATION OF OTHER LAW.  Except as otherwise
   3-39  provided by this Act, Chapter 375, Local Government Code, applies
   3-40  to the district.
   3-41        SECTION 8.  CONSTRUCTION OF ACT.  This Act shall be liberally
   3-42  construed in conformity with the legislative findings and purposes
   3-43  stated in this Act.
   3-44        SECTION 9.  BOARD OF DIRECTORS IN GENERAL.  (a)  The district
   3-45  is governed by a board of 30 directors who serve staggered
   3-46  four-year terms.
   3-47        (b)  Subchapter D, Chapter 375, Local Government Code,
   3-48  applies to the board to the extent that subchapter does not
   3-49  conflict with this Act.
   3-50        SECTION 10.  INITIAL DIRECTORS.  (a)  The initial board
   3-51  consists of the following persons:
   3-52   Pos. No.      Name of Director
   3-53      1          Charles Baughn
   3-54      2          Patrick Ezzell
   3-55      3          Cindy Garcia
   3-56      4          Nick Gonzales
   3-57      5          Dennis L. Greer
   3-58      6          Valerie D. Marshall
   3-59      7          William E. Penland, Jr.
   3-60      8          Peggy Menchaca
   3-61      9          Sharon Michael
   3-62     10          Melanie Ringo
   3-63     11          Mark M. Sacco
   3-64     12          Paula T. Saizan
   3-65     13          James B. Seigler
   3-66     14          Richard Veith
   3-67     15          Ben I. Wilson
   3-68     16          Azalea Aleman
   3-69     17          Sherea A. McKenzie
   3-70     18          Tom Mene
    4-1     19          Elsa Pagan
    4-2     20          James J. Smith
    4-3     21          C. Richard Vermillion
    4-4     22          Gary Warwick
    4-5     23          J. Mark Russell
    4-6     24          Robert Bradford
    4-7     25          Anthony Choy
    4-8     26          Patricia C. Hewlett
    4-9     27          Gary L. Marks
   4-10     28          Joel B. Otte
   4-11     29          Gary D. Schuman
   4-12     30          Jane Bass Page
   4-13        (b)  Of the initial directors, the directors appointed for
   4-14  positions 1 through 7 serve until June 1, 1996, the directors
   4-15  appointed for positions 8 through 15 serve until June 1, 1997, the
   4-16  directors appointed for positions 16 through 23 serve until June 1,
   4-17  1998, and the directors appointed for positions 24 through 30 serve
   4-18  until June 1, 1999.
   4-19        SECTION 11.  SUBSEQUENT DIRECTORS.  (a)  The mayor and city
   4-20  council of the city shall appoint subsequent directors from persons
   4-21  recommended by the board.  A vacancy in the office of director
   4-22  because of the death, resignation, or removal of a director shall
   4-23  be filled by the remaining members of the board by appointing a
   4-24  qualified person for the unexpired term.
   4-25        (b)  A person may not be appointed to the board if the
   4-26  appointment of that person would result in less than two-thirds of
   4-27  the board members being residents of the city.
   4-28        SECTION 12.  EX OFFICIO MEMBERS OF BOARD OF DIRECTORS.
   4-29  (a)  The directors of the parks and recreation, planning and
   4-30  development, public works, and civic center departments of the
   4-31  city, the chief of police of the city, and the general manager of
   4-32  the Metropolitan Transit Authority of the county each shall serve
   4-33  as a nonvoting ex officio member of the board.
   4-34        (b)  If any of the departments described by Subsection (a) of
   4-35  this section are consolidated, renamed, changed, or abolished, the
   4-36  board may appoint the directors of the consolidated, renamed, or
   4-37  changed departments as nonvoting ex officio members of the board or
   4-38  the board may appoint a representative of another department of the
   4-39  city that performs duties comparable to those performed by the
   4-40  abolished department.
   4-41        (c)  The board may appoint the chairpersons of other
   4-42  nonprofit corporations actively involved in downtown activities in
   4-43  the city to serve as nonvoting ex officio members of the board.
   4-44        SECTION 13.  POWERS OF DISTRICT.  (a)  The district has all
   4-45  powers necessary or required to accomplish the purposes for which
   4-46  the district was created.
   4-47        (b)  The district has the rights, powers, privileges,
   4-48  authorities, and functions of a district created under Chapter 375,
   4-49  Local Government Code.
   4-50        (c)  The district has the powers conferred on a corporation
   4-51  under Section 4B, the Development Corporation Act of 1979 (Article
   4-52  5190.6, Vernon's Texas Civil Statutes).  The district may own,
   4-53  operate, acquire, construct, lease, improve, and maintain projects,
   4-54  other than a domed football stadium, described by that section.
   4-55        (d)  The district may exercise the power of a housing finance
   4-56  corporation created under Chapter 394, Local Government Code, to
   4-57  provide housing or residential development projects within the
   4-58  district.
   4-59        (e)  The district may:
   4-60              (1)  levy ad valorem taxes, assessments, or impact fees
   4-61  in accordance with Chapter 375, Local Government Code, to provide
   4-62  improvements and services for a project or activity the district is
   4-63  authorized to acquire, construct, improve, or provide under this
   4-64  Act; and
   4-65              (2)  correct, add to, or delete assessments from its
   4-66  assessment rolls after notice and hearing as provided by Subchapter
   4-67  F, Chapter 375, Local Government Code.
   4-68        (f)  The district may not levy a sales and use tax.
   4-69        (g)  The district may not acquire property through eminent
   4-70  domain.
    5-1        (h)  If the district, in exercising a power conferred by this
    5-2  Act, requires a relocation, adjustment, raising, lowering,
    5-3  rerouting, or changing the grade of or altering the construction of
    5-4  any street, alley, highway, overpass, underpass, road, railroad
    5-5  track, bridge, facility or property; electric line, conduit,
    5-6  facility or property; telephone or telegraph line, conduit,
    5-7  facility or property; gas transmission or distribution pipe,
    5-8  pipeline, main, facility or property; water, sanitary sewer or
    5-9  storm sewer pipe, pipeline, main, facility or property; cable
   5-10  television line, cable, conduit, facility or property; or other
   5-11  pipeline or facility or property relating to the pipeline, that
   5-12  relocation, adjustment, raising, lowering, rerouting, changing of
   5-13  grade, or altering of construction must be accomplished at the sole
   5-14  cost and expense of the district, and the district shall bear
   5-15  damages that are suffered by owners of the property or facilities.
   5-16        SECTION 14.  CONFLICTS WITH OTHER LAW.  If any provision of a
   5-17  law referenced in Section 13 of this Act is in conflict with or is
   5-18  inconsistent with this Act, this Act prevails.  Any law referenced
   5-19  in this Act that is not in conflict or inconsistent with this Act
   5-20  is adopted and incorporated by reference.
   5-21        SECTION 15.  REQUIREMENTS FOR FINANCING SERVICES AND
   5-22  IMPROVEMENTS.  The board may not finance services and improvement
   5-23  projects under this Act unless a written petition  requesting those
   5-24  improvements or services has been filed with the board.  The
   5-25  petition must be signed by:
   5-26              (1)  the owners of a majority of the assessed value of
   5-27  real property in the district as determined by the most recent
   5-28  certified county property tax rolls; or
   5-29              (2)  at least 50 persons who own land within the
   5-30  district, if there are more than 50 persons who own property in the
   5-31  district as determined by the most recent certified county property
   5-32  tax rolls.
   5-33        SECTION 16.  EXEMPTIONS.  A single family residential
   5-34  property or a residential duplex, triplex, quadruplex, or
   5-35  condominium may not be exempt from the imposition of a tax, an
   5-36  impact fee, or an assessment if the tax, impact fee, or assessment
   5-37  is imposed in accordance with this Act.
   5-38        SECTION 17.  NONPROFIT CORPORATION.  (a)  The board by
   5-39  resolution may authorize the creation of a nonprofit corporation to
   5-40  aid, assist, and act on behalf of the district in implementing a
   5-41  project or providing a service authorized by this Act.
   5-42        (b)  The board shall appoint the board of directors of a
   5-43  nonprofit corporation created under this section.  The board of
   5-44  directors of  the nonprofit corporation shall serve in the same
   5-45  manner as, for the same term as, and on the conditions of the board
   5-46  of directors of a local government corporation created under the
   5-47  Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
   5-48  Civil Statutes).
   5-49        (c)  A nonprofit corporation created under this section has
   5-50  the powers of and is considered for purposes of this Act to be a
   5-51  local government corporation created under the Texas Transportation
   5-52  Corporation Act (Article 1528l, Vernon's Texas Civil Statutes).
   5-53        (d)  A nonprofit corporation created under this section may
   5-54  implement any project and provide any services authorized by this
   5-55  Act.
   5-56        SECTION 18.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The board
   5-57  by resolution shall establish the number of directors' signatures
   5-58  and the procedure required for a disbursement or transfer of the
   5-59  district's money.
   5-60        SECTION 19.  BONDS.  (a)  The district may issue bonds or
   5-61  other obligations payable in whole or in part from ad valorem
   5-62  taxes, assessments, impact fees, revenues, grants, or other funds
   5-63  of the district, or any combination of those funds, to pay for any
   5-64  authorized purpose of the district, other than to finance a domed
   5-65  football stadium.
   5-66        (b)  Bonds or other obligations of the district may be issued
   5-67  in the form of bonds, notes, certificates of participation,
   5-68  including other instruments evidencing a proportionate interest in
   5-69  payments to be made by the district, or other obligations that are
   5-70  issued in the exercise of the district's borrowing power and may be
    6-1  issued in bearer or registered form or not represented by an
    6-2  instrument but the transfer of which is registered on books
    6-3  maintained by or on behalf of the district.
    6-4        (c)  Except as provided by Subsection (d) of this section,
    6-5  the district must obtain the city's approval of:
    6-6              (1)  the issuance of bonds for an improvement project;
    6-7  and
    6-8              (2)  the plans and specifications of the improvement
    6-9  project to be financed by the bonds.
   6-10        (d)  If the district obtains the city's approval of a capital
   6-11  improvements budget for a specified period not to exceed five
   6-12  years, the district may finance the capital improvements and issue
   6-13  bonds specified in the budget without further city approval.
   6-14        (e)  Before the district issues bonds, the district shall
   6-15  submit the bonds and the record of proceedings of the district
   6-16  relating to authorization of the bonds to the attorney general for
   6-17  approval as provided by Chapter 53, Acts of the 70th Legislature,
   6-18  2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
   6-19  Statutes).
   6-20        SECTION 20.  ASSESSMENTS.  (a)  The board may levy and
   6-21  collect an assessment for any purpose authorized by this Act.
   6-22        (b)  Assessments, reassessments or  assessments resulting
   6-23  from an addition to or correction of the assessment roll by the
   6-24  district, penalties and interest on an assessment or reassessment,
   6-25  expenses of collection, and reasonable attorney's fees incurred by
   6-26  the district:
   6-27              (1)  are a first and prior lien against the property
   6-28  assessed;
   6-29              (2)  are superior to any other lien or claim other than
   6-30  a lien or claim for county, school district, or municipal ad
   6-31  valorem taxes; and
   6-32              (3)  are the personal liability of and charge against
   6-33  the owners of the property even if the owners are not named in the
   6-34  assessment proceedings.
   6-35        (c)  The lien is effective from the date of the resolution of
   6-36  the board levying the assessment until the assessment is paid.  The
   6-37  board may enforce the lien in the same manner that the board may
   6-38  enforce an ad valorem tax lien against real property.
   6-39        SECTION 21.  APPROVAL OF CERTAIN IMPROVEMENT PROJECTS.  The
   6-40  district must obtain the city's approval of the plans and
   6-41  specifications of any district improvement project related to the
   6-42  use of land owned by the city, an easement granted by the city, or
   6-43  a right-of-way of a street, road, or highway.
   6-44        SECTION 22.  ELECTIONS.  (a)  In addition to the elections
   6-45  the district must hold under Subchapter L, Chapter 375, Local
   6-46  Government Code, the district shall hold an election in the manner
   6-47  provided by that subchapter to obtain voter approval before the
   6-48  district imposes a maintenance tax or issues bonds payable from ad
   6-49  valorem taxes or assessments.
   6-50        (b)  The board may submit multiple purposes in a single
   6-51  proposition at an election.
   6-52        (c)  The board may not call an election under this Act unless
   6-53  a written petition requesting an election has been filed with the
   6-54  board.  The petition must be signed by:
   6-55              (1)  the owners of a majority of the assessed value of
   6-56  real property in the district as determined by the most recent
   6-57  certified county property tax rolls; or
   6-58              (2)  at least 50 persons who own land within the
   6-59  district, if there are more than 50 persons who own property in the
   6-60  district as determined by the most recent certified county property
   6-61  tax rolls.
   6-62        SECTION 23.  IMPACT FEES.  The district may impose an impact
   6-63  fee for an authorized purpose as provided by Subchapter G, Chapter
   6-64  375, Local Government Code.
   6-65        SECTION 24.  MAINTENANCE TAX.  (a)  If authorized at an
   6-66  election held in accordance with Section 22 of this Act, the
   6-67  district may levy and collect an annual ad valorem tax on taxable
   6-68  property in the district for the maintenance and operation of the
   6-69  district and the improvements constructed or acquired by the
   6-70  district or for the provision of services to industrial or
    7-1  commercial businesses, residents, or property owners.
    7-2        (b)  The board shall determine the tax rate.
    7-3        SECTION 25.  DISSOLUTION OF DISTRICT.  (a)  The district may
    7-4  be dissolved as provided in Subchapter M, Chapter 375, Local
    7-5  Government Code.
    7-6        (b)  Notwithstanding Section 375.264, Local Government Code,
    7-7  a district that has debt may be dissolved as provided by Subchapter
    7-8  M, Chapter 375, Local Government Code.  If the district has debt
    7-9  and is dissolved, the district shall remain in existence solely for
   7-10  the limited purpose of discharging its bonds or other obligations
   7-11  according to their terms.
   7-12        SECTION 26.  CONTRACTS.  (a)  To protect the public interest,
   7-13  the district may contract with the city or county for the provision
   7-14  of law enforcement services by the county or city in the district
   7-15  on a fee basis.
   7-16        (b)  The city, county, or any other political subdivision of
   7-17  the state, without further authorization, may contract with the
   7-18  district to implement a project of the district or aid and assist
   7-19  the district in providing the services authorized under this Act.
   7-20  A contract under this subsection may:
   7-21              (1)  be for a period on which the parties agree;
   7-22              (2)  include terms on which the parties agree;
   7-23              (3)  be payable from taxes or any other sources of
   7-24  revenue that may be available for such purpose; or
   7-25              (4)  provide that taxes or other revenue collected at a
   7-26  district project or from a person using or purchasing a commodity
   7-27  or service at a district project may be paid or rebated to the
   7-28  district under the terms of the contract.
   7-29        (c)  The district may enter into a contract, lease, or
   7-30  agreement with or make or accept grants and loans to or from:
   7-31              (1)  the United States, including federal departments
   7-32  and agencies;
   7-33              (2)  the state or a state agency;
   7-34              (3)  a county, municipality, or other political
   7-35  subdivision of the state;
   7-36              (4)  a public or private corporation, including a
   7-37  nonprofit corporation created by the board under this Act; and
   7-38              (5)  any other person.
   7-39        (d)  The district may perform all acts necessary for the full
   7-40  exercise of the powers vested in the district on terms and
   7-41  conditions and for the term the board may determine to be
   7-42  advisable.
   7-43        SECTION 27.  COMPETITIVE BIDDING.  The district may enter a
   7-44  contract for more than $10,000 for services, improvements, or the
   7-45  purchase of materials, machinery, equipment, supplies, or other
   7-46  property only as provided by Subchapter K, Chapter 375, Local
   7-47  Government Code.
   7-48        SECTION 28.  REINVESTMENT ZONES.  All or any part of the area
   7-49  of the district is eligible to be included in a tax incremental
   7-50  reinvestment zone created by the city under Chapter 311, Tax Code,
   7-51  or included in a tax abatement reinvestment zone created by the
   7-52  city under Chapter 312, Tax Code.
   7-53        SECTION 29.  NOTICE AND CONSENT.  The legislature finds that:
   7-54              (1)  proper and legal notice of the intention to
   7-55  introduce this Act, setting forth the general substance of this
   7-56  Act, has been published as provided by law, and the notice and a
   7-57  copy of this Act have been furnished to all persons, agencies,
   7-58  officials, or entities to which they are required to be furnished
   7-59  by the constitution and laws of this state, including the governor,
   7-60  who has submitted the notice and a copy of this Act to the Texas
   7-61  Natural Resource Conservation Commission;
   7-62              (2)  the Texas Natural Resource Conservation Commission
   7-63  has filed its recommendations relating to this Act with the
   7-64  governor, lieutenant governor, and speaker of the house of
   7-65  representatives within the required time;
   7-66              (3)  the general law relating to consent by political
   7-67  subdivisions to the creation of districts with conservation,
   7-68  reclamation, and road powers and the inclusion of land in those
   7-69  districts has been complied with; and
   7-70              (4)  all requirements of the constitution and laws of
    8-1  this state and the rules and procedures of the legislature with
    8-2  respect to the notice, introduction, and passage of this Act have
    8-3  been fulfilled and accomplished.
    8-4        SECTION 30.  EMERGENCY.  The importance of this legislation
    8-5  and the crowded condition of the calendars in both houses create an
    8-6  emergency and an imperative public necessity that the
    8-7  constitutional rule requiring bills to be read on three several
    8-8  days in each house be suspended, and this rule is hereby suspended,
    8-9  and that this Act take effect and be in force from and after its
   8-10  passage, and it is so enacted.
   8-11                               * * * * *