By Coleman                                            H.B. No. 2894
         76R9015 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, and duties of the
 1-3     Midtown Municipal Management District; granting the authority to
 1-4     issue bonds; authorizing a tax.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.    CREATION OF DISTRICT.  (a)  A special district
 1-7     to be known as the "Midtown Municipal Management District" exists
 1-8     as a  governmental agency, body politic and corporate, and
 1-9     political subdivision of the state.
1-10           (b)  The name of the district may be changed by resolution of
1-11     the board.
1-12           (c)  The creation of the district is essential to accomplish
1-13     the purposes of Section 52, Article III, Section 59, Article XVI,
1-14     and Section 52-a, Article III, Texas Constitution and other public
1-15     purposes stated in this Act.
1-16           SECTION 2.  LEGISLATIVE DECLARATION.  (a)  The legislature
1-17     finds and declares that the creation of the district is necessary
1-18     to promote, develop, encourage, and maintain employment, commerce,
1-19     transportation, housing, tourism, recreation, arts, entertainment,
1-20     economic development, safety, and the public welfare in the Midtown
1-21     area of the city of Houston.
1-22           (b)  It is the legislature's intent that the creation of the
1-23     district and this legislation not be interpreted to relieve Harris
1-24     County or the city of Houston from providing the present level of
 2-1     services to the area included within the district or to release the
 2-2     county or the city from the obligations each entity has to provide
 2-3     services to that area.  The district is created to supplement and
 2-4     not supplant the city or county services in the area included
 2-5     within the district.
 2-6           (c)  The legislature finds and intends that by creating the
 2-7     district and in authorizing the city, county and other political
 2-8     subdivisions to contract with the district the legislature has
 2-9     established a program to accomplish the public purposes set  out in
2-10     Section 52-a, Article III, Texas Constitution.
2-11           SECTION 3.  DEFINITIONS.  In this Act:
2-12                 (1)  "Board" means the board of directors of the
2-13     district.
2-14                 (2)  "District" means the Midtown Municipal Management
2-15     District.
2-16                 (3)  "City" means the city of Houston, Texas.
2-17                 (4)  "County" means Harris County, Texas.
2-18           SECTION 4.  BOUNDARIES.  The district includes all the
2-19     territory contained within the following described area:
2-20           Being all of the following described property in the
2-21     Obedience Smith Survey, Abstract No. 696, and the James S.  Holman
2-22     Survey No. 323, City of Houston, Harris County Texas and being more
2-23     particularly described as follows:
2-24           BEGINNING at the intersection of the westerly line of Bagby
2-25     Street with the southerly line of McGowen Avenue;
2-26           THENCE in a southwesterly direction along the westerly line
2-27     of Bagby Street to it's intersection with the southerly line of
 3-1     Tuam Street;
 3-2           THENCE in a southeasterly direction along the southerly line
 3-3     of Tuam Avenue to its intersection with the westerly line of Brazos
 3-4     Street;
 3-5           THENCE in a southwesterly direction along the westerly line
 3-6     of Brazos Street to its intersection with the northerly line if
 3-7     Elgin Avenue;
 3-8           THENCE in a southeasterly direction along the northerly line
 3-9     of Elgin Avenue to its intersection with the easterly line of
3-10     Brazos Street which is also the easterly line of Spur 527, a
3-11     segment of the Southwest Freeway;
3-12           THENCE in a southerly direction along the easterly line of
3-13     said Spur 527 to its intersection with the easterly line of Milam
3-14     Street;
3-15           THENCE in a southwesterly direction along the easterly line
3-16     of Milam Street to its intersection with the easterly line of said
3-17     Spur 527;
3-18           THENCE in a southerly and southwesterly direction along said
3-19     Spur 527 to it's intersection with northerly line of US 59 south;
3-20           THENCE easterly along the northerly line of said US 59 South
3-21     to its intersections with the southeasterly line of Austin Street;
3-22           THENCE northeasterly along the southeasterly line of Austin
3-23     Street to its intersection with the northeasterly line of Eagle
3-24     Avenue;
3-25           THENCE northwesterly along northeasterly line of Eagle Avenue
3-26     to the southeasterly line of San Jacinto Street;
3-27           THENCE northeasterly along the southeasterly line of San
 4-1     Jacinto Street to the southeasterly line of Alabama Avenue;
 4-2           THENCE in a southeasterly direction along the southerly line
 4-3     of Alabama Avenue to its intersection with the easterly line of La
 4-4     Branch Street;
 4-5           THENCE in a northeasterly direction along the easterly
 4-6     direction along the easterly line of La Branch Street to its
 4-7     intersection with the southerly line of Winbern Avenue;
 4-8           THENCE in a southeasterly direction along the southerly line
 4-9     of Winbern Avenue to its intersection with the easterly line of
4-10     Crawford Street;
4-11           THENCE in a northeasterly direction along the easterly line
4-12     of Crawford Street to its intersection with the southerly line of
4-13     Stuart Avenue;
4-14           THENCE in a southeasterly direction along the southerly line
4-15     of Stuart Avenue to the intersection with the Easterly line of
4-16     Hamilton Street which is adjacent to US Highway 59/State Highway
4-17     288;
4-18           THENCE in a northeasterly and northerly direction along the
4-19     easterly line of Hamilton Street and westerly line of said US
4-20     Highway 59 / State Highway 288 to its intersection with the
4-21     northerly line of West Gray Avenue;
4-22           THENCE in a northwesterly direction along the northerly line
4-23     of West Gray Avenue to its intersection with the easterly line of
4-24     Smith Street;
4-25           THENCE in a northeasterly direction along the easterly line
4-26     of Smith Street to its intersection with the southerly line of
4-27     Interstate Highway No. 45;
 5-1           THENCE in a northwesterly and northerly direction along the
 5-2     southerly line of said Interstate Highway No. 45 to its
 5-3     intersection with the north line of Cleveland Street;
 5-4           THENCE in a westerly direction along the northerly line of
 5-5     Cleveland Street to its intersection with the westerly line of
 5-6     Arthur Street;
 5-7           THENCE in a southerly direction along the westerly line of
 5-8     Arthur Street to the southerly dead end thereof;
 5-9           THENCE in a southeasterly direction at right angles to the
5-10     northwesterly line of Baldwin Street to its intersection with said
5-11     line;
5-12           THENCE in a southwesterly direction along the northwesterly
5-13     line of Baldwin Street to its intersection with the southerly line
5-14     of West Gray Avenue;
5-15           THENCE in a northwesterly and westerly direction along the
5-16     southerly line of West Gray Avenue to its intersection with the
5-17     north line of Webster Avenue;
5-18           THENCE in a southeasterly direction along the northerly line
5-19     of Webster Avenue to its intersection with an easterly projection
5-20     of the north line of West Webster Avenue;
5-21           THENCE westerly along the northerly line of West Webster
5-22     Avenue to the westerly line of Bailey Street;
5-23           THENCE southerly along the westerly line of Bailey Street and
5-24     a southerly projection thereof to its intersection with the
5-25     southerly line of McGowen Avenue;
5-26           THENCE southeasterly along the southerly of McGowen Avenue to
5-27     its intersection with the westerly line of Bagby Street, which is
 6-1     the place of beginning of the tract herein described.  There is
 6-2     excepted from the boundaries of the district the following tract:
 6-3           BEGINNING at the intersection of the center line of Pierce
 6-4     Avenue and Bagby Street;
 6-5           THENCE in a northeasterly direction with a center line of
 6-6     Bagby Street to the westerly right-of-way of Interstate Highway 45;
 6-7           THENCE south and southeasterly along the right-of-way of
 6-8     Interstate Highway 45 to its intersection with the center line of
 6-9     Pierce Avenue;
6-10           THENCE westerly along the center line of Pierce Avenue to the
6-11     intersection with the center line of Bagby Street the point and
6-12     place of beginning.
6-13           SECTION 5.  FINDINGS RELATING TO BOUNDARIES.  The legislature
6-14     finds that the boundaries and field notes of the district form a
6-15     closure.  If a mistake is made in the field notes or in copying the
6-16     field notes in the legislative process, it in no way affects the:
6-17                 (1)  organization, existence, and validity of the
6-18     district;
6-19                 (2)  right of the district to issue any type of bonds
6-20     or refunding bonds for the purposes for which the district is
6-21     created or to pay the  principal of and interest on the bonds;
6-22                 (3)  right of the district to levy and collect
6-23     assessments or taxes; or
6-24                 (4)  legality or operation of the district or its
6-25     governing body.
6-26           SECTION 6.  FINDING OF BENEFIT AND PUBLIC PURPOSE.  (a)  The
6-27     legislature finds that all of the land and other property included
 7-1     within the boundaries of the district will be benefited by the
 7-2     improvements and services to be  provided by the district under
 7-3     powers conferred by Section 52, Article III, Section 59, Article
 7-4     XVI, and Section 52-a, Article III, Texas Constitution, and other
 7-5     powers granted under this Act, and that the district is created to
 7-6     serve a public use and benefit.
 7-7           (b)  The legislature finds that:
 7-8                 (1)  the creation of the district is in the public
 7-9     interest and is essential to:
7-10                       (A)  further the public purposes of the
7-11     development and diversification of the economy of the state; and
7-12                       (B)  eliminate unemployment and underemployment
7-13     and develop or expand transportation and commerce;
7-14                 (2)  the district will promote the health, safety, and
7-15     general welfare of residents, employers, employees, visitors,
7-16     consumers in the district, and the general public;
7-17                 (3)  the district will provide needed funding for the
7-18     city's Midtown area to preserve, maintain, and enhance the economic
7-19     health and vitality of the area as a community and business center;
7-20     and
7-21                 (4)  the district will further promote the health,
7-22     safety, welfare, and enjoyment of the public by providing
7-23     pedestrian ways and by landscaping and developing certain areas
7-24     within the district, which are necessary for the restoration,
7-25     preservation, and enhancement of scenic and aesthetic beauty.
7-26           (c)  The legislature finds and determines that pedestrian
7-27     ways along or across a street, whether at grade or above or below
 8-1     the surface, and  street lighting, street landscaping, and street
 8-2     art objects are parts of and necessary components of a street and
 8-3     are considered to be a street or road improvement.
 8-4           (d)  The district will not act as the agent or
 8-5     instrumentality of any private interest even though many private
 8-6     interests will be benefited by the  district, as will the general
 8-7     public.
 8-8           SECTION 7.   APPLICATION OF OTHER LAW.  Except as otherwise
 8-9     provided by this Act, Chapter 375, Local Government Code, applies
8-10     to the district and its governing body and employees.
8-11           SECTION 8.  CONSTRUCTION OF ACT.  This Act shall be liberally
8-12     construed in conformity with the legislative findings and purposes
8-13     stated in this Act.
8-14           SECTION 9.  BOARD OF DIRECTORS IN GENERAL.  (a)  The district
8-15     is governed by a board of 11 directors who shall serve staggered
8-16     four-year terms.
8-17           (b)  Subchapter D, Chapter 375, Local Government Code,
8-18     applies to the board to the extent that subchapter does not
8-19     conflict with this Act.
8-20           (c)  Directors shall be entitled to receive compensation in
8-21     accordance with Section 49.060, Water Code.
8-22           (d)  A person who qualifies to serve on the board is
8-23     qualified to serve as a director and participate in all votes and
8-24     decisions pertaining to the business of the district regardless of
8-25     any other statutory provision to the contrary.  A director who has
8-26     a beneficial interest in a business entity that will receive a
8-27     pecuniary benefit from or has a substantial interest in an action
 9-1     of the board shall file a one-time affidavit to that effect, and
 9-2     additional affidavits regarding such beneficial interest shall not
 9-3     be required.  After such affidavit is filed, the director may
 9-4     participate in discussion and vote on that action if a majority of
 9-5     the board has a similar interest in the same action or if all other
 9-6     similar business entities in the district will receive a similar
 9-7     pecuniary benefit.  An employee of a public entity may serve on the
 9-8     board of directors of the district, but the public employee may not
 9-9     participate in the discussion of or vote on any matter regarding
9-10     contracts with the public entity of which the director is an
9-11     employee.
9-12           (e)  Directors of the district shall be public officials and
9-13     shall be entitled to governmental immunity for their actions in
9-14     their capacity as  directors and officers of the district.
9-15           SECTION 10.  INITIAL DIRECTORS.  (a)  The initial board
9-16     consists of the following persons:
9-17     Pos. No.  Name of Director
9-18        1      ______________
9-19        2      ______________
9-20        3      ______________
9-21        4      ______________
9-22        5      ______________
9-23        6      ______________
9-24        7      ______________
9-25        8      ______________
9-26        9      ______________
9-27        10     ______________
 10-1       11     ______________
 10-2          (b)  Of the initial directors, the directors appointed for
 10-3    positions 1 through 6 serve until June 1, 2003, and the directors
 10-4    appointed for positions 7 through 11 serve until June 1, 2001.
 10-5          SECTION 11.    SUBSEQUENT DIRECTORS.  (a)  The mayor and city
 10-6    council of the city shall appoint subsequent directors from persons
 10-7    recommended by the board.
 10-8          (b)  A person may not be appointed to the board if the
 10-9    appointment of that person would result in less than two-thirds of
10-10    the board members being residents of the city.
10-11          SECTION 12.  EX OFFICIO MEMBERS OF BOARD OF DIRECTORS.  (a)
10-12    The directors of the parks and recreation, planning and
10-13    development, public works, and  civic center departments of the
10-14    city, the chief of police of the city, and the general manager of
10-15    the Metropolitan Transit Authority of the county each shall serve
10-16    as a non-voting ex officio member of the board.
10-17          (b)  If any of the departments described by Subsection (a)
10-18    of this section are consolidated, renamed, changed, or abolished,
10-19    the board may appoint the directors of the consolidated, renamed or
10-20    changed departments as non-voting ex officio members of the board
10-21    or the board may appoint a representative of another department of
10-22    the city that performs duties comparable to those performed by the
10-23    abolished department.
10-24          (c)  The board may appoint the chairpersons of other
10-25    non-profit corporations actively involved in Midtown activities in
10-26    the city to serve as non-voting ex officio members of the board.
10-27          SECTION 13.  POWERS OF DISTRICT.  (a)  The district has all
 11-1    powers necessary or required to accomplish the purposes for which
 11-2    the district was created.
 11-3          (b)  The district has the rights, powers, privileges,
 11-4    authorities, and functions of a district created under Chapter 375,
 11-5    Local Government Code.
 11-6          (c)  The district has the powers conferred on a corporation
 11-7    under Section 4B, the Development Corporation Act of 1979 (Article
 11-8    5190.6, Vernon's Texas Civil Statutes).  The district may own,
 11-9    operate, acquire, construct, lease, improve, and maintain projects
11-10    described by that section.
11-11          (d)  The district may exercise the power of a housing finance
11-12    corporation created under Chapter 394, Local Government Code, to
11-13    provide housing or residential development projects within the
11-14    district.
11-15          (e)  The district may:
11-16                (1)  levy ad valorem taxes, assessments, or impact fees
11-17    in accordance with Chapter 375, Local Government Code, on all
11-18    property in the district including industrial, commercial,
11-19    residential and other properties to provide any improvements and
11-20    services for a project or activity the district is authorized to
11-21    acquire, construct, improve, or provide under this Act; and
11-22                (2)  correct, add to, or delete assessments from its
11-23    assessment rolls after notice and hearing as provided by Subchapter
11-24    F, Chapter 375, Local Government Code.
11-25          (f)  The district may acquire property through eminent
11-26    domain.
11-27          (g)  If the district, in exercising a power conferred by this
 12-1    Act, requires a relocation, adjustment, raising, lowering,
 12-2    rerouting, or changing the grade of or altering the construction of
 12-3    any street, alley, highway, overpass, underpass, road, railroad
 12-4    track, bridge, facility or property, electric line, conduit,
 12-5    facility or property, telephone or telegraph line, conduit,
 12-6    facility or property, gas transmission or distribution pipe,
 12-7    pipeline, main, facility or property, water, sanitary sewer or
 12-8    storm sewer pipe, pipeline, main, facility or property, cable
 12-9    television line, cable, conduit, facility or property, or other
12-10    pipeline or facility or property relating to the pipeline, that
12-11    relocation, adjustment, raising, lowering, rerouting, changing of
12-12    grade, or altering of construction must be accomplished at the sole
12-13    cost and expense of the district, and the district shall bear
12-14    damages that are suffered by owners of the property or facilities.
12-15          SECTION 14.  CONFLICTS WITH OTHER LAW.  If any provision of a
12-16    law referenced in Section 13 of this Act is in conflict with or is
12-17    inconsistent with this Act, this Act prevails.  Any law referenced
12-18    in this Act that is not in conflict or inconsistent with this Act
12-19    is adopted and incorporated by reference.
12-20          SECTION 15.  REQUIREMENTS FOR FINANCING SERVICES AND
12-21    IMPROVEMENTS.  The board may not finance services and improvement
12-22    projects under this Act unless a written petition requesting those
12-23    improvements or services has been filed with the board.  The
12-24    petition must be signed by:
12-25                (1)  the owners of a majority of the assessed value of
12-26    real property in the district as determined by the most recent
12-27    certified county property tax rolls; or
 13-1                (2)  at least 25 persons who own land within the
 13-2    district, if there are more than 25 persons who own property in the
 13-3    district as determined by the most recent certified county property
 13-4    tax rolls.
 13-5          SECTION 16.  EXEMPTIONS.  A single family residential
 13-6    property or a residential duplex, triplex, quadruplex, or
 13-7    condominium may not be exempt from the imposition of a tax, an
 13-8    impact fee, or an assessment if the tax, impact fee, or assessment
 13-9    is imposed in accordance with this Act.
13-10          SECTION 17.  NONPROFIT CORPORATION.  (a)  The board by
13-11    resolution may authorize the creation of a nonprofit corporation to
13-12    aid, assist, and act on behalf of the district in implementing a
13-13    project or providing a service authorized by this Act.
13-14          (b)  The board shall appoint the board of directors of a
13-15    nonprofit corporation created under this section.  The board of
13-16    directors of the nonprofit corporation shall serve in the same
13-17    manner as, for the same term as, and on the conditions of the board
13-18    of directors of a local government corporation created under
13-19    Subchapter D of Chapter 431, Vernon's Texas Transportation Code.
13-20          (c)  A nonprofit corporation created under this section has
13-21    the powers of and is considered for purposes of this Act to be a
13-22    local government corporation created under the Subchapter D of
13-23    Chapter 431  Vernon's Texas Transportation Code.
13-24          (d)  A nonprofit corporation created under this section may
13-25    implement any project and provide any services authorized by this
13-26    Act.
13-27          SECTION 18.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The board
 14-1    by resolution shall establish the number of directors' signatures
 14-2    and the procedure required for a disbursement or transfer of the
 14-3    district's money.
 14-4          SECTION 19.  BONDS.  (a) The district may issue bonds or
 14-5    other obligations payable in whole or in part from ad valorem
 14-6    taxes, assessments, impact fees, revenues, grants, or other funds
 14-7    of the district, or any combination of those funds, to pay for any
 14-8    authorized purpose of the district.
 14-9          (b)  Bonds or other obligations of the district may be issued
14-10    in the form of bonds, notes, certificates of participation,
14-11    including other instruments evidencing a proportionate interest in
14-12    payments to be made by the district, or other obligations that are
14-13    issued in the exercise of the district's borrowing power and may be
14-14    issued in bearer or registered form or not represented by an
14-15    instrument but the transfer of which is registered on books
14-16    maintained by or on behalf of the district.
14-17          (c)  Except as provided by Subsection (d) of this section,
14-18    the district must obtain the city's approval of:
14-19                (1)  the issuance of bonds for an improvement project;
14-20    and
14-21                (2)  the plans and specifications of the improvement
14-22    project to be financed by the bonds.
14-23          (d)  If the district obtains the city's approval of a capital
14-24    improvements budget for a specified period not to exceed five
14-25    years, the district may finance the capital improvements and issue
14-26    bonds specified in the budget without further city approval.
14-27          (e)  Before the district issues bonds, the district shall
 15-1    submit the bonds and the record of proceedings of the district
 15-2    relating to authorization of the bonds to the attorney general for
 15-3    approval as provided by Chapter 53, Acts of the 70th Legislature,
 15-4    2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
 15-5    Statutes).
 15-6          SECTION 20.  ASSESSMENTS.  (a)  The board may levy and
 15-7    collect an assessment for any purpose authorized by this Act.
 15-8          (b)  Assessments, reassessments or assessments resulting from
 15-9    an addition to or correction of the assessment roll by the
15-10    district, penalties and interest on an assessment or reassessment,
15-11    expenses of collection, and reasonable attorney's fees incurred by
15-12    the district:
15-13                (1)  are a first and prior lien against the property
15-14    assessed;
15-15                (2)  are superior to any other lien or claim other than
15-16    a lien or claim for county, school district, or municipal ad
15-17    valorem taxes; and
15-18                (3)  are the personal liability of and charge against
15-19    the owners of the property even if the owners are not named in the
15-20    assessment proceedings.
15-21          (c)  The lien is effective from the date of the resolution of
15-22    the board levying the assessment until the assessment is paid.  The
15-23    board may enforce the lien in the same manner that the board may
15-24    enforce an ad valorem tax lien against real property.
15-25          (d)  The district may not impose an assessment on the
15-26    property, equipment, or facilities of a public utility, as defined
15-27    by Section 2.0011 or 3.002, Public Utility Regulatory Act of 1995
 16-1    (Article 1446c-0, Vernon's Texas Civil Statutes).
 16-2          SECTION 21.  APPROVAL OF CERTAIN IMPROVEMENT PROJECTS.  The
 16-3    district must obtain the city's approval of the plans and
 16-4    specifications of any district improvement project related to the
 16-5    use of land owned by the city, an easement granted by the city, or
 16-6    a right-of-way of a street, road, or highway.
 16-7          SECTION 22.  ELECTIONS.  (a)  In addition to the elections
 16-8    the district must hold under Subchapter L, Chapter 375, Local
 16-9    Government Code, the district shall hold an election in the manner
16-10    provided by that subchapter to obtain voter approval before the
16-11    district imposes a maintenance tax or issues bonds payable from ad
16-12    valorem taxes or assessments.
16-13          (b)  The board may submit multiple purposes in a single
16-14    proposition at an election.
16-15          SECTION 23.  IMPACT FEES.  (a)  The district may impose an
16-16    impact fee for an authorized purpose as provided by Subchapter G,
16-17    Chapter 375, Local Government Code.
16-18          (b)  The district may not impose an impact fee on the
16-19    property, equipment, or facilities of a public utility, as defined
16-20    by Section 2.0011 or 3.002, Public Utility Regulatory Act of 1995
16-21    (Article 1446c-0, Vernon's Texas Civil Statutes).
16-22          SECTION 24.  MAINTENANCE TAX.  (a)  If authorized at an
16-23    election held in accordance with Section 22 of this Act, the
16-24    district may levy and collect an annual ad valorem tax on taxable
16-25    property in the district for the maintenance and operation of the
16-26    district and the improvements constructed or acquired by the
16-27    district or for the provision of services to industrial and
 17-1    commercial businesses, residents, or property owners.
 17-2          (b)  The board shall determine the tax rate.
 17-3          SECTION 25.  DISSOLUTION OF DISTRICT.  (a)  The district may
 17-4    be dissolved as provided in Subchapter M, Chapter 375, Local
 17-5    Government Code.
 17-6          (b)  Notwithstanding Section 375.264, Local Government Code,
 17-7    a district that has debt may be dissolved as provided by Subchapter
 17-8    M, Chapter 375, Local Government Code.  If the district has debt
 17-9    and is dissolved, the district shall remain in existence solely for
17-10    the limited purpose of discharging its bonds or other obligations
17-11    according to their terms.
17-12          SECTION 26.  CONTRACTS.  (a)  To protect the public interest,
17-13    the district may contract with the city or county for the provision
17-14    of law enforcement services by the county or city in the district
17-15    on a fee basis.
17-16          (b)  The city, county, or any other political subdivision of
17-17    the state, without further authorization, may contract with the
17-18    district to implement a project of the district or aid and assist
17-19    the district in providing the services authorized under this Act.
17-20    A contract under this subsection may:
17-21                (1)  be for a period on which the parties agree;
17-22                (2)  include terms on which the parties agree;
17-23                (3)  be payable from taxes or any other sources of
17-24    revenue that may be available for such purpose; or
17-25                (4)  provide that taxes or other revenue collected at a
17-26    district project or from a person using or purchasing a commodity
17-27    or service at a district project may be paid or rebated to the
 18-1    district under the terms of the contract.
 18-2          (c)  The district may enter into a contract, lease, or
 18-3    agreement with or make or accept grants and loans to or from:
 18-4                (1)  the United States, including federal departments
 18-5    and agencies;
 18-6                (2)  the state or a state agency;
 18-7                (3)  a county, municipality, or other political
 18-8    subdivision of the state;
 18-9                (4)  a public or private corporation, including a
18-10    nonprofit corporation created by the board under this Act; and
18-11                (5)  any other person.
18-12          (d)  The district may perform all acts necessary for the full
18-13    exercise of the powers vested in the district on terms and
18-14    conditions and for the term the board may determine to be
18-15    advisable.
18-16          SECTION 27.  COMPETITIVE BIDDING.  The district may enter a
18-17    contract for more than $25,000 for services, improvements, or the
18-18    purchase of materials, machinery, equipment, supplies, or other
18-19    property only as provided by Subchapter K, Chapter 375, Local
18-20    Government Code.
18-21          SECTION 28.  ANNEXATION.  In addition to annexing land in
18-22    accordance with Subchapter 3, Chapter 375, Local Government Code,
18-23    the district, without further authorization, may annex land located
18-24    within the boundaries of a reinvestment zone created by the city
18-25    under Chapter 311, Tax Code, with the consent of the city council
18-26    of the city.
18-27          SECTION 29.  NOTICE AND CONSENT.  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 a copy of this Act to the Texas
 19-8    Natural Resource 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 30.  EFFECTIVE DATE.  This Act takes effect September
19-22    1, 1999.
19-23          SECTION 31.  EMERGENCY.  The importance of this legislation
19-24    and the crowded condition of the calendars in both houses create an
19-25    emergency and an imperative public necessity that the
19-26    constitutional rule requiring bills to be read on three several
19-27    days in each house be suspended, and this rule is hereby suspended.