AN ACT

 1-1     relating to the creation of certain municipal management districts;

 1-2     authorizing the issuance of bonds and the imposition of taxes.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle A, Title 12, Local Government Code, is

 1-5     amended by adding Chapter 376 to read as follows:

 1-6            CHAPTER 376.  SPECIFIC MUNICIPAL MANAGEMENT DISTRICTS

 1-7                  (Subchapters A-E reserved for expansion

 1-8           SUBCHAPTER F.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2

 1-9           Sec. 376.211.  CREATION OF DISTRICT.  (a)  A special district

1-10     to be known as the "Harris County Improvement District No. 2"

1-11     exists as a governmental agency, body politic and corporate, and

1-12     political subdivision of the state.

1-13           (b)  The name of the district may be changed by resolution of

1-14     the board.

1-15           (c)  The creation of the district is essential to accomplish

1-16     the purposes of Section 52, Article III, Section 59, Article XVI,

1-17     and Section 52-a, Article III, Texas Constitution, and other public

1-18     purposes stated in this subchapter.

1-19           Sec. 376.212.  DECLARATION OF INTENT.  (a)  The creation of

1-20     the district is necessary to promote, develop, encourage, and

1-21     maintain employment, commerce, transportation, housing, tourism,

1-22     recreation, arts, entertainment, economic development, safety, and

1-23     the public welfare in the Richmond Avenue area of Houston.

 2-1           (b)  The creation of the district and this legislation is not

 2-2     to be interpreted to relieve the county or the municipality from

 2-3     providing the level of services, as of September 1, 1997, to the

 2-4     area in the district or to release the county or the municipality

 2-5     from the obligations each entity has to provide services to that

 2-6     area.  The district is created to supplement and not supplant the

 2-7     municipal or county services provided in the area in the district.

 2-8           (c)  By creating the district and in authorizing the

 2-9     municipality, county, and other political subdivisions to contract

2-10     with the district, the legislature has established a program to

2-11     accomplish the public purposes set out in Section 52-a, Article

2-12     III, Texas Constitution.

2-13           Sec. 376.213.  DEFINITIONS.  In this subchapter:

2-14                 (1)  "Board" means the board of directors of the

2-15     district.

2-16                 (2)  "County" means Harris County, Texas.

2-17                 (3)  "District" means the Harris County Improvement

2-18     District No. 2.

2-19                 (4)  "Municipality" means the City of Houston, Texas.

2-20           Sec. 376.214.  BOUNDARIES.  The district includes all the

2-21     territory contained in the following described area:

2-22           Being 167 acres, more or less, out of the R. Vince Survey,

2-23     Abstract No. 77, Abstract No. 697, the H. Sanderson Survey,

2-24     Abstract No. 725, the G.C. & S.F. RR Survey, Abstract No. 997, all

2-25     located in Harris County, Texas, being more particularly described

 3-1     by metes and bounds as follows:

 3-2     BEGINNING AT A POINT being the point of intersection of the

 3-3     centerline of the right of way of Fairdale Street and the West line

 3-4     of the H. Sanderson Survey, Abstract No. 725, being also a point in

 3-5     the East line of the R. Vince Survey, Abstract No. 77,

 3-6     Thence in an easterly direction with the centerline of Fairdale

 3-7     Street, to the point of intersection with the centerline of the

 3-8     right of way of Chimney Rock Road,

 3-9     Thence in a southerly direction with the centerline of the right of

3-10     way of Chimney Rock Road to the point of intersection with the

3-11     easterly projection of the centerline of the right of way of

3-12     Beverly Hill Lane,

3-13     Thence in a westerly direction with said easterly projection and

3-14     then continuing with the centerline of the right of way of Beverly

3-15     Hill Lane to the point of intersection with the northerly

3-16     projection of the East line of Lot 133 of the Westheimer Gardens

3-17     subdivision as described by plat filed of record in Volume 24, Page

3-18     8 of the Map Records of Harris County, Texas,

3-19     Thence in a southerly direction with said northerly projection of

3-20     the East line of Lot 133 of the Westheimer Gardens Subdivision and

3-21     then continuing with said East Line to the southeast corner of that

3-22     lot, being also a point in the North line of Lot 1, Block 1 of the

3-23     Westheimer Manor subdivision as described by plat recorded in

3-24     Volume 26, Page 30 of the Map Records of Harris County, Texas,

3-25     Thence in an easterly direction with the North line of Lot 1, Block

 4-1     1 of the Westheimer Manor subdivision to the northeast corner of

 4-2     that lot,

 4-3     Thence continuing in a southerly direction with the east line of

 4-4     Lot 1, Block 1 of Westheimer Manor subdivision to the southeast

 4-5     corner of that lot,

 4-6     Thence continuing in a southerly direction crossing the right of

 4-7     way of Schumacher Lane to the northeast corner of Lot 33, Block 3

 4-8     of Westheimer Manor,

 4-9     Thence continuing in a southerly direction with the East line of

4-10     Lot 33, Block 3 of Westheimer Manor to the southeast corner of that

4-11     lot, being also the northeast corner of Lot 49, Block 3 of

4-12     Westheimer Manor,

4-13     Thence continuing in a southerly direction with the East line of

4-14     Lot 49, Block 3 of Westheimer Manor to the southeast corner of that

4-15     lot,

4-16     Thence continuing in a southerly direction crossing the right of

4-17     way of Star Lane to the northeast corner of Lot 97, Block 5 of

4-18     Westheimer Manor,

4-19     Thence continuing in a southerly direction with the East line of

4-20     Lot 97, Block 5 of Westheimer Manor to the southeast corner of that

4-21     lot, being also the northeast corner of Lot 113, Block 5 of

4-22     Westheimer Manor,

4-23     Thence continuing in a southerly direction with the East line of

4-24     Lot 97, Block 5 of Westheimer Manor passing the southeast corner of

4-25     that lot and continuing in a southerly direction with a southerly

 5-1     projection of the East line of Lot 97, Block 5 of Westheimer Manor

 5-2     to the point of intersection with the centerline of the right of

 5-3     way of U.S. Highway 59 South,

 5-4     Thence in a westerly direction with the centerline of the right of

 5-5     way of U.S. Highway 59 South to the point of intersection with the

 5-6     southerly projection of the West line of Lot 229, Block 6 of

 5-7     Glenhaven Estates Section 2 as described by plat recorded in Volume

 5-8     19, Page 59 of the Map Records of Harris County, Texas,

 5-9     Thence in a northerly direction with the southerly projection of

5-10     the West line of Lot 229, Block 6 of Glenhaven Estates Section 2

5-11     and continuing with the West line of Lot 229, Block 6 of Glenhaven

5-12     Estates Section 2 to the northwest corner of that lot, being also

5-13     the southwest corner of Lot 224, Block 6 of Glenhaven Estates

5-14     Section 2,

5-15     Thence continuing a northerly direction with the West line of Lot

5-16     224, Block 6 of Glenhaven Estates Section 2 and a northerly

5-17     projection thereof to the point of intersection with the centerline

5-18     of Skyline Lane,

5-19     Thence in an easterly direction to the point of intersection with

5-20     the southerly projection of the West line of Lot 171, Block 5 of

5-21     Glenhaven Estates Section 2,

5-22     Thence in a northerly direction with the southerly projection of

5-23     the West line of Lot 171, Block 5 of Glenhaven Estates Section 2,

5-24     passing the southwest corner of that lot and continuing in a

5-25     northerly direction along the West line of Lot 171, Block 5 of

 6-1     Glenhaven Estates Section 2 to the northwest corner of that lot,

 6-2     being also the southwest corner of Lot 170, Block 5 of Glenhaven

 6-3     Estates Section 2,

 6-4     Thence in an easterly direction along the South line of Lot 170,

 6-5     Block 5 of Glenhaven Estates Section 2 passing the southeast corner

 6-6     of that lot, and continuing with an easterly projection of the

 6-7     South line of Lot 170, Block 5 of Glenhaven Estates Section 2 to

 6-8     the point of intersection with the centerline of the right of way

 6-9     of Fountainview Drive, formerly known as Ulrich Road,

6-10     Thence in a northerly direction with the centerline of the right of

6-11     way of Fountainview Drive to the point of intersection with the

6-12     easterly projection of the centerline of the right of way of

6-13     Beverly Hill Lane,

6-14     Thence in a westerly direction with the easterly projection of the

6-15     centerline of the right of way of Beverly Hill Lane and continuing

6-16     in a westerly direction with the centerline of the right of way of

6-17     Beverly Hill Lane and continuing with a westerly projection thereof

6-18     to the point of intersection with the centerline of Hillcroft

6-19     Avenue,

6-20     Thence in a northerly direction with the centerline of Hillcroft

6-21     Avenue to the point of intersection with the westerly projection of

6-22     the centerline of Fairdale Street,

6-23     Thence in an easterly direction with the westerly projection of the

6-24     centerline of Fairdale Street and continuing with the centerline of

6-25     Fairdale Street to the POINT of BEGINNING, SAVE AND EXCEPT the

 7-1     following parcels of land:

 7-2     Lots 3, 4, 5, 6, 8, 9, 10, 12, 13, 26, 27, 28, 114, 123, 124, 125,

 7-3     126, 127, 128, 129, 130, and 131 of the Westheimer Gardens

 7-4     Subdivision as described by plat filed for record in Volume 24,

 7-5     Page 8 of the Map Records of Harris County, Texas; Lot 96 of the

 7-6     Glenhaven Estates, Section 1 Subdivision as described by plat filed

 7-7     for record in Volume 16, Page 71 of the Map Records of Harris

 7-8     County, Texas, SAVE AND EXCEPT all tracts or parcels of land,

 7-9     rights-of-ways, facilities, and improvements owned by a public

7-10     utility as defined by Section 2.0011(1), Public Utility Regulatory

7-11     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes).

7-12           Sec. 376.215.  FINDINGS RELATING TO BOUNDARIES.  The

7-13     boundaries and field notes of the district form a closure.  If a

7-14     mistake is made in the field notes or in copying the field notes in

7-15     the legislative process, the mistake does not in any way affect

7-16     the:

7-17                 (1)  organization, existence, and validity of the

7-18     district;

7-19                 (2)  right of the district to issue any type of bonds

7-20     or refunding bonds for the purposes for which the district is

7-21     created or to pay the principal of and interest on the bonds;

7-22                 (3)  right of the district to impose and collect

7-23     assessments or taxes; or

7-24                 (4)  legality or operation of the district or its

7-25     governing body.

 8-1           Sec. 376.216.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

 8-2     (a)  All the land and other property included in the district will

 8-3     be benefited by the improvements and services to be provided by the

 8-4     district under powers conferred by Section 52, Article III, Section

 8-5     59, Article XVI, and Section 52-a, Article III, Texas Constitution,

 8-6     and other powers granted under this subchapter, and the district is

 8-7     created to serve a public use and benefit.

 8-8           (b)  The creation of the district is in the public interest

 8-9     and is essential to:

8-10                 (1)  further the public purposes of the development and

8-11     diversification of the economy of the state; and

8-12                 (2)  eliminate unemployment and underemployment and

8-13     develop or expand transportation and commerce.

8-14           (c)  The district will:

8-15                 (1)  promote the health, safety, and general welfare of

8-16     residents, employers, employees, visitors, consumers in the

8-17     district, and the general public;

8-18                 (2)  provide needed funding to preserve, maintain, and

8-19     enhance the economic health and vitality of the area in the

8-20     district as a community and business center; and

8-21                 (3)  further promote the health, safety, welfare, and

8-22     enjoyment of the public by providing pedestrian ways and by

8-23     landscaping and developing certain areas in the district, which are

8-24     necessary for the restoration, preservation, and enhancement of

8-25     scenic and aesthetic beauty.

 9-1           (d)  Pedestrian ways along or across a street, whether at

 9-2     grade or above or below the surface, and street lighting, street

 9-3     landscaping, and street art objects are parts of and necessary

 9-4     components of a street and are considered to be a street or road

 9-5     improvement.

 9-6           (e)  The district will not act as the agent or

 9-7     instrumentality of any private interest even though many private

 9-8     interests will be benefited by the district, as will the general

 9-9     public.

9-10           Sec. 376.217.  APPLICATION OF OTHER LAW.  Except as otherwise

9-11     provided by this subchapter, Chapter 375 applies to the district.

9-12           Sec. 376.218.  CONSTRUCTION OF SUBCHAPTER.  This subchapter

9-13     shall be liberally construed in conformity with the findings and

9-14     purposes stated in this subchapter.

9-15           Sec. 376.219.  BOARD OF DIRECTORS IN GENERAL.  (a)  The

9-16     district is governed by a board of nine directors who serve

9-17     staggered terms of four years with four or five members' terms

9-18     expiring June 1 of each odd-numbered year.  The board may increase

9-19     or decrease the number of directors on the board by resolution,

9-20     provided that it is in the best interest of the district to do so

9-21     and that the board consists of not fewer than nine and not more

9-22     than 30 directors.

9-23           (b)  Subchapter D, Chapter 375, applies to the board to the

9-24     extent that subchapter does not conflict with this subchapter.  The

9-25     imposition of a tax, assessment, or impact fee requires a vote of a

 10-1    majority of the directors serving.  Directors may vote on any

 10-2    matter authorized by Subchapter D, Chapter 375, and action may be

 10-3    taken by the board only if it is approved in the manner prescribed

 10-4    by Subchapter D, Chapter 375.

 10-5          Sec. 376.220.  APPOINTMENT AND REMOVAL OF DIRECTORS; VACANCY.

 10-6    The mayor and members of the governing body of the municipality

 10-7    shall appoint directors from persons recommended by the board that

 10-8    meet the requirements of Subchapter D, Chapter 375.  A vacancy in

 10-9    the office of director because of the death, resignation, or

10-10    removal of a director shall be filled by the remaining members of

10-11    the board by appointing a qualified person for the unexpired term.

10-12          Sec. 376.221.  POWERS OF DISTRICT.  The district has:

10-13                (1)  all powers necessary or required to accomplish the

10-14    purposes for which the district was created;

10-15                (2)  the rights, powers, privileges, authority, and

10-16    functions of a district created under Chapter 375;

10-17                (3)  the powers given to a corporation under Section

10-18    4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's

10-19    Texas Civil Statutes), and the power to own, operate, acquire,

10-20    construct, lease, improve, and maintain projects;

10-21                (4)  the power to impose ad valorem taxes, assessments,

10-22    or impact fees in accordance with Chapter 375 to provide

10-23    improvements and services for a project or activity the district is

10-24    authorized to acquire, construct, improve, or provide under this

10-25    subchapter; and

 11-1                (5)  the power to correct, add to, or delete

 11-2    assessments from its assessment rolls after notice and hearing as

 11-3    provided by Subchapter F, Chapter 375.

 11-4          Sec. 376.222.  EMINENT DOMAIN.  The district may not exercise

 11-5    the power of eminent domain.

 11-6          Sec. 376.223.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS

 11-7    AFFECTING PROPERTY.  (a)  If the district, in exercising a power

 11-8    conferred by this subchapter, requires a relocation, adjustment,

 11-9    raising, lowering, rerouting, or changing of the grade or the

11-10    construction of any of the following items, the district must take

11-11    that required action at the sole expense of the district:

11-12                (1)  a street, alley, highway, overpass, underpass,

11-13    road, railroad track, bridge, facility, or other property;

11-14                (2)  an electric line, conduit, facility, or other

11-15    property;

11-16                (3)  a telephone or telegraph line, conduit, facility,

11-17    or other property;

11-18                (4)  a gas transmission or distribution pipe, pipeline,

11-19    main, facility, or other property;

11-20                (5)  a water, sanitary sewer, or storm sewer pipe,

11-21    pipeline, main, facility, or other property;

11-22                (6)  a cable television line, cable, conduit, facility,

11-23    or other property; or

11-24                (7)  another pipeline, facility, or other property

11-25    relating to the pipeline.

 12-1          (b)  The district shall bear damages that are suffered by

 12-2    owners of the facility or other property.

 12-3          Sec. 376.224.  RELATION TO OTHER LAW.  If any provision of a

 12-4    law referenced in Section 376.221 is in conflict with or is

 12-5    inconsistent with this subchapter, this subchapter prevails.  Any

 12-6    law referenced in this subchapter that is not in conflict or

 12-7    inconsistent with this subchapter is adopted and incorporated by

 12-8    reference.

 12-9          Sec. 376.225.  REQUIREMENTS FOR FINANCING SERVICES AND

12-10    IMPROVEMENTS.  The board may not finance services and improvement

12-11    projects under this subchapter unless a written petition requesting

12-12    those improvements or services has been filed with the board.  The

12-13    petition must be signed by:

12-14                (1)  the owners of a majority of the assessed value of

12-15    real property in the district as determined by the most recent

12-16    certified county property tax rolls; or

12-17                (2)  at least 50 persons who own land in the district,

12-18    if there are more than 50 persons who own property in the district

12-19    as determined by the most recent certified county property tax

12-20    rolls.

12-21          Sec. 376.226.  NONPROFIT CORPORATION.  (a)  The board by

12-22    resolution may authorize the creation of a nonprofit corporation to

12-23    assist and act on behalf of the district in implementing a project

12-24    or providing a service authorized by this subchapter.

12-25          (b)  The board shall appoint the board of directors of a

 13-1    nonprofit corporation created under this section.  The board of

 13-2    directors of the nonprofit corporation shall serve in the same

 13-3    manner as, for the same term as, and on the conditions of the board

 13-4    of directors of a local government corporation created under

 13-5    Chapter 431, Transportation Code.

 13-6          (c)  A nonprofit corporation created under this section has

 13-7    the powers of and is considered for purposes of this subchapter to

 13-8    be a local government corporation created under Chapter 431,

 13-9    Transportation Code.

13-10          (d)  A nonprofit corporation created under this section may

13-11    implement any project and provide any services authorized by this

13-12    subchapter.

13-13          Sec. 376.227.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The

13-14    board by resolution shall establish the number of directors'

13-15    signatures and the procedure required for a disbursement or

13-16    transfer of the district's money.

13-17          Sec. 376.228.  BONDS.  (a)  The district may issue bonds or

13-18    other obligations payable in whole or in part from ad valorem

13-19    taxes, assessments, impact fees, revenues, grants, or other money

13-20    of the district, or any combination of those sources of money, to

13-21    pay for any authorized purpose of the district.

13-22          (b)  Bonds or other obligations of the district may be issued

13-23    in the form of bonds, notes, certificates of participation,

13-24    including other instruments evidencing a proportionate interest in

13-25    payments to be made by the district, or other obligations that are

 14-1    issued in the exercise of the district's borrowing power and may be

 14-2    issued in bearer or registered form or not represented by an

 14-3    instrument but the transfer of which is registered on books

 14-4    maintained by or on behalf of the district.  The board may impose

 14-5    and collect an assessment under Subchapter F, Chapter 375, for any

 14-6    purpose authorized by this subchapter or Chapter 375.

 14-7          (c)  Except as provided by Subsection (d), the district must

 14-8    obtain the municipality's approval of:

 14-9                (1)  the issuance of bonds for an improvement project;

14-10                (2)  the plans and specifications of the improvement

14-11    project to be financed by the bonds; and

14-12                (3)  the plans and specifications of a district

14-13    improvement project related to the use of:

14-14                      (A)  land owned by a municipality;

14-15                      (B)  an easement granted by a municipality; or

14-16                      (C)  a right-of-way of a street, road, or

14-17    highway.

14-18          (d)  If the district obtains the municipality's approval of a

14-19    capital improvements budget for a specified period not to exceed

14-20    five years, the district may finance the capital improvements and

14-21    issue bonds specified in the budget without further municipal

14-22    approval.

14-23          (e)  Before the district issues bonds, the district shall

14-24    submit the bonds and the record of proceedings of the district

14-25    relating to authorization of the bonds to the attorney general for

 15-1    approval as provided by Chapter 53, Acts of the 70th Legislature,

 15-2    2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

 15-3    Statutes).

 15-4          Sec. 376.229.  ASSESSMENTS.  (a)  The board may impose and

 15-5    collect an assessment for any purpose authorized by this

 15-6    subchapter.

 15-7          (b)  Assessments, reassessments, or assessments resulting

 15-8    from an addition to or correction of the assessment roll by the

 15-9    district, penalties and interest on an assessment or reassessment,

15-10    expenses of collection, and reasonable attorney's fees incurred by

15-11    the district:

15-12                (1)  are a first and prior lien against the property

15-13    assessed;

15-14                (2)  are superior to any other lien or claim other than

15-15    a lien or claim for county, school district, or municipal ad

15-16    valorem taxes; and

15-17                (3)  are the personal liability of and charge against

15-18    the owners of the property even if the owners are not named in the

15-19    assessment proceedings.

15-20          (c)  A lien is effective from the date of the resolution of

15-21    the board levying the assessment until the assessment is paid.  The

15-22    board may enforce the lien in the same manner that the board may

15-23    enforce an ad valorem tax lien against real property.

15-24          Sec. 376.230.  PROPERTY EXEMPTED BY BOARD.  (a)  The district

15-25    may not impose a tax, impact fee, or assessment on a residential

 16-1    property, multiunit residential property, or condominium.

 16-2          (b)  The district may not impose an impact fee or assessment

 16-3    on any property, equipment, or facilities of a public utility as

 16-4    defined by Section 2.0011(1), Public Utility Regulatory Act of 1995

 16-5    (Article 1446c-0, Vernon's Texas Civil Statutes).

 16-6          Sec. 376.231.  ELECTIONS.  (a)  In addition to the elections

 16-7    the district must hold under Subchapter L, Chapter 375, the

 16-8    district shall hold an election in the manner provided by that

 16-9    subchapter to obtain voter approval before the district imposes a

16-10    maintenance tax or issues bonds payable from ad valorem taxes or

16-11    assessments.

16-12          (b)  The board may submit multiple purposes in a single

16-13    proposition at an election.

16-14          Sec. 376.232.  IMPACT FEES.  The district may impose an

16-15    impact fee for an authorized purpose as provided by Subchapter G,

16-16    Chapter 375.

16-17          Sec. 376.233.  MAINTENANCE TAX.  (a)  If authorized at an

16-18    election held in accordance with Section 376.231, the district may

16-19    impose and collect an annual ad valorem tax on taxable property in

16-20    the district for the maintenance and operation of the district and

16-21    the improvements constructed or acquired by the district or for the

16-22    provision of services.

16-23          (b)  The board shall determine the tax rate.

16-24          Sec. 376.234.  DISSOLUTION OF DISTRICT.  The district may be

16-25    dissolved as provided by Subchapter M, Chapter 375.  If the

 17-1    district has debt and is dissolved, the district shall remain in

 17-2    existence solely for the limited purpose of discharging its bonds

 17-3    or other obligations according to their terms.

 17-4          Sec. 376.235.  CONTRACTS.  (a)  To protect the public

 17-5    interest, the district may contract with the municipality or county

 17-6    for the provision of law enforcement services by the county or

 17-7    municipality in the district on a fee basis.

 17-8          (b)  The municipality, county, or another political

 17-9    subdivision of the state, without further authorization, may

17-10    contract with the district to implement a project of the district

17-11    or assist the district in providing the services authorized under

17-12    this subchapter.  A contract under this subsection may:

17-13                (1)  be for a period on which the parties agree;

17-14                (2)  include terms on which the parties agree;

17-15                (3)  be payable from taxes or any other sources of

17-16    revenue that may be available for such purpose; or

17-17                (4)  provide that taxes or other revenue collected at a

17-18    district project or from a person using or purchasing a commodity

17-19    or service at a district project may be paid or rebated to the

17-20    district under the terms of the contract.

17-21          (c)  The district may enter into a contract, lease, or other

17-22    agreement with or make or accept grants and loans to or from:

17-23                (1)  the United States;

17-24                (2)  the state or a state agency;

17-25                (3)  any county, any municipality, or another political

 18-1    subdivision of the state;

 18-2                (4)  a public or private corporation, including a

 18-3    nonprofit corporation created by the board under this subchapter;

 18-4    or

 18-5                (5)  any other person.

 18-6          (d)  The district may perform all acts necessary for the full

 18-7    exercise of the powers vested in the district on terms and for the

 18-8    period the board determines advisable.

 18-9          Sec. 376.236.  INITIAL DIRECTORS.  (a) The initial board

18-10    consists of the following persons:

18-11                Pos. No.      Name of Director

18-12                   1          Stuart Kensinger

18-13                   2          Holly Ann Jarrett

18-14                   3          Jim Easterling

18-15                   4          Phil Kensinger

18-16                   5          Mark Licata

18-17                   6          Augustine Wang

18-18                   7          Joe Su

18-19                   8          Tulane Gordon

18-20                   9          Darby Suiter

18-21          (b)  Of the initial directors, the terms of the directors for

18-22    positions 1 through 5 expire June 1, 1999, and the terms of the

18-23    directors appointed for positions 6 through 9 expire June 1, 2001.

18-24          (c)  This section expires September 1, 2002.

18-25          SECTION 2.  The legislature finds that:

 19-1                (1)  proper and legal notice of the intention to

 19-2    introduce this Act, setting forth the general substance of this

 19-3    Act, has been published as provided by law, and the notice and a

 19-4    copy of this Act have been furnished to all persons, agencies,

 19-5    officials, or entities to which they are required to be furnished

 19-6    by the constitution and laws of this state, including the governor,

 19-7    who has submitted the notice and Act to the Texas Natural Resource

 19-8    Conservation Commission;

 19-9                (2)  the Texas Natural Resource Conservation Commission

19-10    has filed its recommendations relating to this Act with the

19-11    governor, lieutenant governor, and speaker of the house of

19-12    representatives within the required time;

19-13                (3)  the general law relating to consent by political

19-14    subdivisions to the creation of districts with conservation,

19-15    reclamation, and road powers and the inclusion of land in those

19-16    districts has been complied with; and

19-17                (4)  all requirements of the constitution and laws of

19-18    this state and the rules and procedures of the legislature with

19-19    respect to the notice, introduction, and passage of this Act have

19-20    been fulfilled and accomplished.

19-21          SECTION 3.  The importance of this legislation and the

19-22    crowded condition of the calendars in both houses create an

19-23    emergency and an imperative public necessity that the

19-24    constitutional rule requiring bills to be read on three several

19-25    days in each house be suspended, and this rule is hereby suspended,

 20-1    and that this Act take effect and be in force from and after its

 20-2    passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 18 passed the Senate on

         April 30, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 18 passed the House on

         May 21, 1997, by the following vote:  Yeas 145, Nays 0, two present

         not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor