1-1     By:  Coleman (Senate Sponsor - Gallegos)              H.B. No. 3799
 1-2           (In the Senate - Received from the House April 26, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 7, 1999, reported favorably, as
 1-5     amended, by the following vote:  Yeas 5, Nays 0; May 7, 1999, sent
 1-6     to printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                                By:  Ellis
 1-8     Amend the engrossed version of C.S.H.B. 3799 as follows:
 1-9           (1)  On page 4, between lines 29 and 30 insert the following:
1-10     "Thence in a southeasterly direction with the centerline of the
1-11     right of way of the HB&T Railway to the point of intersection with
1-12     the centerline of the right of way of Milby Street,
1-13           Thence in a southwesterly direction with the centerline of
1-14     the right of way of Milby Street to the point of intersection with
1-15     the centerline of the right of Leeland Avenue,
1-16           Thence in a southeasterly direction with the centerline of
1-17     the right of way of Leeland Avenue to the point of intersection
1-18     with the centerline of the right of way of the HB&T Railway."
1-19           (2)  On page 4, line 31, between "beginning" and ".", insert
1-20     the following:
1-21     ", SAVE AND EXCEPT all tracts or parcels of land, rights of way,
1-22     facilities, and improvements owned by a utility"
1-23           (3)  On page 4, line 66 after "center;" insert "and."
1-24           (4)  On page 5, line 2, strike "and."
1-25           (5)  On page 5, lines 3 through 8 strike "(4)  further
1-26     eliminate unemployment and underemployment and develop or expand
1-27     transportation and commerce by providing or by participating with
1-28     other entities and educational institutions in the establishment,
1-29     equipping, financing, and operation of workforce development,
1-30     workforce education, and job training opportunities."
1-31           (6)  On page 5, line 19, after "district," insert "and its
1-32     governing body and employees."
1-33           (7)  On page 5, line 58, strike "and."
1-34           (8)  On page 5, line 61, after "375," insert "; and."
1-35           (9)  On page 5, between lines 61 and 62 insert the following:
1-36                 "(6)  the powers given to a housing finance corporation
1-37     created under Chapter 394 to provide housing or residential
1-38     development projects in the district."
1-39           (10)  On page 5, line 64, insert the following:
1-40           "Sec. 376.3125.  EX OFFICIO BOARD MEMBERS.
1-41           (a)  The following persons shall serve as nonvoting ex
1-42     officio director:
1-43                 (1)  the director of the following departments of the
1-44     municipality:
1-45                       (A)  parks and recreation;
1-46                       (B)  planning and development;
1-47                       (C)  public works; and
1-48                       (D)  civic center.
1-49                 (2)  the municipality's chief of police;
1-50                 (3)  the general manager of the Metropolitan Transit
1-51     Authority; and
1-52                 (4)  the presidents of any institutions of higher
1-53     learning located in the district.
1-54           (b)  If a department described by Subsection (a) is
1-55     consolidated, renamed, or changed, the board may appoint a director
1-56     of the consolidated, renamed, or changed department as a nonvoting
1-57     ex officio board member.  If a department described by Subsection
1-58     (a) is abolished, the board may appoint a representative of another
1-59     department of the municipality that performs duties comparable to
1-60     those performed by the abolished department.
1-61           (c)  The board may appoint the presiding officer of a
1-62     nonprofit corporation that is actively involved in activities in
1-63     the municipality's midtown area to serve as a nonvoting ex officio
1-64     director."
1-65           (11)  On page 5, line 64, insert the following:
 2-1           "Sec. 376.3128.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
 2-2           (a)  Except as provided in this section:
 2-3                 (1)  a director may participate in all board votes and
 2-4     decisions; and
 2-5                 (2)  Chapter 171 governs conflicts of interest for
 2-6     board members.
 2-7           (b)  Section 171.004 does not apply to the district.  A
 2-8     director who has a substantial interest in a business or charitable
 2-9     entity that will receive a pecuniary benefit from a board action
2-10     shall file a one-time affidavit declaring the interest.  An
2-11     additional affidavit is not required if the director's interest
2-12     changes.  After the affidavit is filed with the board secretary,
2-13     the director may participate in a discussion or vote on that action
2-14     if:
2-15                 (1)  a majority of the directors have a similar
2-16     interest in the same entity; or
2-17                 (2)  all other similar business or charitable entities
2-18     in the district will receive a similar pecuniary benefit.
2-19           (c)  A director who is also an officer or employee of a
2-20     public entity may not participate in the discussion of or vote on a
2-21     matter regarding a contract with that same public entity.
2-22           (d)  For purposes of this section, a director has a
2-23     substantial interest in a charitable entity in the same manner that
2-24     a person would have a substantial interest in a business entity
2-25     under Section 171.002."
2-26           (12)  On page 7, line 68 through page 8, line 8, strike "Sec.
2-27     376.324.  WORKFORCE DEVELOPMENT SERVICES AND PROJECTS.  (A)  As
2-28     soon as possible after its creation, the district shall develop and
2-29     implement a plan for workforce development services.  The services
2-30     may include:  (1) job training; (2) workforce education;
2-31     (3) financing of special educational opportunities; (4) student
2-32     summer work programs, or (5) other projects that promote workforce
2-33     development.  (b)  The district's initial plan under Subsection (a)
2-34     must."
2-35           (13)  On page 8, lines 9 through 20, strike "be for a period
2-36     of at least five years.  For the first five years of the plan, the
2-37     district shall allocate to the services listed in Subsection (a)
2-38     not less than three percent of its assessment revenues.
2-39           (c)  The district may develop and implement additional plans
2-40     under Subsection (a).
2-41           (d)  To assist in implementing this section, the district
2-42     may:
2-43                 (1)  accept a donation, grant, or loan from any person;
2-44                 (2)  work with schools of all levels;
2-45                 (3)  work with any person that provides workforce
2-46     development funds or projects; or"
2-47           (14)  On page 8, between lines 56 and 57, insert the
2-48     following:
2-49           "Sec. 376.327  COMPETITIVE BIDDING UNIT.  Section 375.221
2-50     does not apply to the district unless the contract is for more than
2-51     $25,000.
2-52           Sec. 376.328  ANNEXATION.  The district may (1) annex
2-53     territory as provided by Subchapter C, Chapter 375; and (2) annex
2-54     territory located inside the boundaries of a reinvestment zone
2-55     created by the municipality under Chapter 311 Tax Code if the
2-56     governing body of the municipality consents to the annexation.
2-57           Sec. 376.329.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
2-58     AGREEMENTS, AND LAW ENFORCEMENT SERVICES.
2-59           (a)  The district may make an agreement with or accept a
2-60     donation, grant, or loan from any person.
2-61           (b)  The implementation of a project is a governmental
2-62     function or service for the purposes of Chapter 791, Government
2-63     Code.
2-64           (c)  To protect the public interest, the district may
2-65     contract with the municipality or the county for the municipality
2-66     or county to provide law enforcement services in the district for a
2-67     fee."
2-68           (15)  On page 9, line 14, strike "Alfred Bennet" and
2-69     substitute "Alfred H. Bennett."
 3-1           (16)  On page 9, line 29, strike "Al Odam" and substitute
 3-2     "Harold A. Odom, III."
 3-3                            A BILL TO BE ENTITLED
 3-4                                   AN ACT
 3-5     relating to the creation of the East Downtown Management District;
 3-6     providing authority to impose a tax and issue bonds.
 3-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 3-8           SECTION 1.  Chapter 376, Local Government Code, is amended by
 3-9     adding Subchapter H to read as follows:
3-10              SUBCHAPTER H.  EAST DOWNTOWN MANAGEMENT DISTRICT
3-11           Sec. 376.301.  CREATION OF DISTRICT.  (a)  A special district
3-12     to be known as the "East Downtown Management District" exists as a
3-13     governmental agency, body politic and corporate, and political
3-14     subdivision of the state.
3-15           (b)  The name of the district may be changed by resolution of
3-16     the board.
3-17           (c)  The creation of the district is essential to accomplish
3-18     the purposes of Section 52, Article III, Section 59, Article XVI,
3-19     and Section 52-a, Article III, Texas Constitution, and other public
3-20     purposes stated in this subchapter.
3-21           Sec. 376.302.  DECLARATION OF INTENT.  (a)  The creation of
3-22     the district is necessary to promote, develop, encourage, and
3-23     maintain employment, commerce, transportation, housing, tourism,
3-24     recreation, arts, entertainment, economic development, safety, and
3-25     the public welfare in the east downtown area of the city of
3-26     Houston.
3-27           (b)  The creation of the district and this legislation are
3-28     not to be interpreted to relieve the county or the municipality
3-29     from providing the level of services, as of the effective date of
3-30     this subchapter, to the area in the district or to release the
3-31     county or the municipality from the obligations each entity has to
3-32     provide services to that area.  The district is created to
3-33     supplement and not supplant the municipal or county services
3-34     provided in the area in the district.
3-35           (c)  By creating the district and in authorizing the
3-36     municipality, county, and other political subdivisions to contract
3-37     with the district, the legislature has established a program to
3-38     accomplish the public purposes set out in Section 52-a, Article
3-39     III, Texas Constitution.
3-40           Sec. 376.303.  DEFINITIONS.  In this subchapter:
3-41                 (1)  "Board" means the board of directors of the
3-42     district.
3-43                 (2)  "County" means Harris County, Texas.
3-44                 (3)  "District" means the East Downtown Management
3-45     District.
3-46                 (4)  "Municipality" means the City of Houston, Texas.
3-47                 (5)  "Utility" means a person that provides to the
3-48     public cable television, gas, light, power, telephone, sewage, or
3-49     water service.
3-50           Sec. 376.304.  BOUNDARIES.  The district includes all the
3-51     territory contained in the following described area:
3-52           Being all of the following described property in the J. Wells
3-53     Survey, Abstract 832, the S.M. Williams Survey, Abstract 87, the H.
3-54     Tierwester Survey, Abstract 76, the L. Moore Survey, Abstract 51
3-55     and the J. Holman Survey, Abstract 323, Harris County, Texas, being
3-56     more particularly described by metes and bounds as follows:
3-57           BEGINNING AT A POINT at the intersection of the centerline of
3-58     the right of way of the HB&T Railway and the centerline of the
3-59     right of way of Interstate 45 South,
3-60           Thence in a northwesterly direction with the centerline of
3-61     the right of way of Interstate 45 South to the point of
3-62     intersection with the centerline of the right of way of U.S.
3-63     Highway 59,
3-64           Thence in a northeasterly direction with the centerline of
3-65     the right of way of U.S. Highway 59 to the point of intersection
3-66     with the centerline of the right of way of Clay Street,
3-67           Thence in a southeasterly direction with the centerline of
 4-1     the right of way of Clay Street to the point of intersection with
 4-2     the centerline of the right of way of Chartres Street,
 4-3           Thence in a northeasterly direction with the centerline of
 4-4     the right of way of Chartres Street to the point of intersection
 4-5     with the centerline of the right of way of Commerce Street,
 4-6           Thence in a southeasterly direction with the centerline of
 4-7     the right of way of Commerce Street to the point of intersection
 4-8     with the centerline of the HB&T Railway, that also being the
 4-9     boundary of Texas House District 147,
4-10           Thence in a southeasterly direction with the centerline of
4-11     the right of way of the HB&T Railway to the point of intersection
4-12     with the centerline of the right of way of Harrisburg Boulevard,
4-13     that also being the boundary of Texas House District 147,
4-14           Thence in a southeasterly direction with the centerline of
4-15     the right of way of Harrisburg Boulevard to the point of
4-16     intersection with the centerline of the right of way of Velasco
4-17     Street, that also being the boundary of Texas House District 147,
4-18           Thence in a southerly direction with the centerline of the
4-19     right of way of Velasco Street  to the point of intersection with
4-20     the centerline of the right of way of Texas Avenue, that also being
4-21     the boundary of Texas House District 147,
4-22           Thence in a southeasterly direction with the centerline of
4-23     the right of way of Texas Avenue to the point of intersection with
4-24     the centerline of the right of way of Sampson Street, that also
4-25     being the boundary of Texas House District 147,
4-26           Thence in a southerly direction with the centerline of the
4-27     right of way of Sampson Street to the point of intersection with
4-28     the centerline of the right of way of the HB&T Railway, that also
4-29     being the boundary of Texas House District 147,
4-30           Thence in a southeasterly direction with the centerline of
4-31     the right of way of the HB&T Railway to the Point of Beginning.
4-32           Sec. 376.305.  FINDINGS RELATING TO BOUNDARIES.  The
4-33     boundaries and field notes of the district form a closure.  If a
4-34     mistake is made in the field notes or in copying the field notes in
4-35     the legislative process, the mistake does not in any way affect
4-36     the:
4-37                 (1)  organization, existence, and validity of the
4-38     district;
4-39                 (2)  right of the district to issue any type of bonds
4-40     or refunding bonds for the purposes for which the district is
4-41     created or to pay the principal of and interest on the bonds;
4-42                 (3)  right of the district to impose and collect
4-43     assessments or taxes; or
4-44                 (4)  legality or operation of the district or its
4-45     governing body.
4-46           Sec. 376.306.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
4-47     All the land and other property included in the district will be
4-48     benefited by the improvements and services to be provided by the
4-49     district under powers conferred by Section 52, Article III, Section
4-50     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
4-51     and other powers granted under this subchapter, and the district is
4-52     created to serve a public use and benefit.
4-53           (b)  The creation of the district is in the public interest
4-54     and is essential to:
4-55                 (1)  further the public purposes of the development and
4-56     diversification of the economy of the state; and
4-57                 (2)  eliminate unemployment and underemployment and
4-58     develop or expand transportation and commerce.
4-59           (c)  The district will:
4-60                 (1)  promote the health, safety, and general welfare of
4-61     residents, employers, employees, visitors, consumers in the
4-62     district, and the general public;
4-63                 (2)  provide needed funding for the east downtown area
4-64     of the city of Houston to preserve, maintain, and enhance the
4-65     economic health and vitality of the area as a community and
4-66     business center;
4-67                 (3)  further promote the health, safety, welfare, and
4-68     enjoyment of the public by providing pedestrian ways and by
4-69     landscaping and developing certain areas in the district, which are
 5-1     necessary for the restoration, preservation, and enhancement of
 5-2     scenic and aesthetic beauty; and
 5-3                 (4)  further eliminate unemployment and underemployment
 5-4     and develop or expand transportation and commerce by providing or
 5-5     by participating with other entities and educational institutions
 5-6     in the establishment, equipping, financing, and operation of
 5-7     workforce development, workforce education, and job training
 5-8     opportunities.
 5-9           (d)  Pedestrian ways along or across a street, whether at
5-10     grade or above or below the surface, and street lighting, street
5-11     landscaping, and street art objects are parts of and necessary
5-12     components of a street and are considered to be a street or road
5-13     improvement.
5-14           (e)  The district will not act as the agent or
5-15     instrumentality of any private interest even though many private
5-16     interests will be benefited by the district, as will the general
5-17     public.
5-18           Sec. 376.307.  APPLICATION OF OTHER LAW.  Except as otherwise
5-19     provided by this subchapter, Chapter 375 applies to the district.
5-20           Sec. 376.308.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
5-21     shall be liberally construed in conformity with the findings and
5-22     purposes stated in this subchapter.
5-23           Sec. 376.309.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
5-24     district is governed by a board of 17 directors who serve staggered
5-25     terms of four years, with nine members' terms expiring June 1 of an
5-26     odd-numbered year and eight members' terms expiring June 1 of the
5-27     following odd-numbered year.  The board may increase or decrease
5-28     the number of directors on the board by resolution, provided that
5-29     it is in the best interest of the district to do so and that the
5-30     board consists of not fewer than 9 and not more than 30 directors.
5-31           (b)  Subchapter D, Chapter 375, applies to the board to the
5-32     extent that subchapter does not conflict with this subchapter.  The
5-33     imposition of a tax, assessment, or impact fee requires a vote of a
5-34     majority of the directors serving.  Directors may vote on any
5-35     matter authorized by Subchapter D, Chapter 375, and action may be
5-36     taken by the board only if it is approved in the manner prescribed
5-37     by Subchapter D, Chapter 375.
5-38           Sec. 376.310.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor
5-39     and members of the governing body of the municipality shall appoint
5-40     directors from persons recommended by the board who meet the
5-41     qualifications of Subchapter D, Chapter 375.  A vacancy in the
5-42     office of director because of the death, resignation, or removal of
5-43     a director shall be filled by the remaining members of the board by
5-44     appointing a qualified person for the unexpired term.
5-45           Sec. 376.311.  POWERS OF DISTRICT.  The district has:
5-46                 (1)  all powers necessary or required to accomplish the
5-47     purposes for which the district was created;
5-48                 (2)  the rights, powers, privileges, authority, and
5-49     functions of a district created under Chapter 375;
5-50                 (3)  the powers given to a corporation under Section
5-51     4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
5-52     Texas Civil Statutes), and the power to own, operate, acquire,
5-53     construct, lease, improve, and maintain projects;
5-54                 (4)  the power to impose ad valorem taxes, assessments,
5-55     or impact fees in accordance with Chapter 375 to provide
5-56     improvements and services for a project or activity the district is
5-57     authorized to acquire, construct, improve, or provide under this
5-58     subchapter; and
5-59                 (5)  the power to correct, add to, or delete
5-60     assessments from its assessment rolls after notice and hearing as
5-61     provided by Subchapter F, Chapter 375.
5-62           Sec. 376.312.  EMINENT DOMAIN.   The district may not
5-63     exercise the power of eminent domain.
5-64           Sec. 376.313.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
5-65     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
5-66     conferred by this subchapter, requires a relocation, adjustment,
5-67     raising, lowering, rerouting, or changing of the grade or the
5-68     construction of any of the following items, the district must take
5-69     that required action at the sole expense of the district:
 6-1                 (1)  a street, alley, highway, overpass, underpass,
 6-2     road, railroad track, bridge, facility, or other property;
 6-3                 (2)  an electric line, conduit, facility, or other
 6-4     property;
 6-5                 (3)  a telephone or telegraph line, conduit, facility,
 6-6     or other property;
 6-7                 (4)  a gas transmission or distribution pipe, pipeline,
 6-8     main, facility, or other property;
 6-9                 (5)  a water, sanitary sewer, or storm sewer pipe,
6-10     pipeline, main, facility, or other property;
6-11                 (6)  a cable television line, cable, conduit, facility,
6-12     or other property; or
6-13                 (7)  another pipeline, facility, or other property
6-14     relating to the pipeline.
6-15           (b)  The district shall bear damages that are suffered by
6-16     owners of the facility or other property.
6-17           Sec. 376.314.  RELATION TO OTHER LAW.  If any provision of
6-18     general law, including a law referenced in this subchapter, is in
6-19     conflict with or is inconsistent with this subchapter, this
6-20     subchapter prevails.  Any law referenced in this subchapter that is
6-21     not in conflict or inconsistent with this subchapter is adopted and
6-22     incorporated by reference.
6-23           Sec. 376.315.  REQUIREMENTS FOR FINANCING SERVICES AND
6-24     IMPROVEMENTS.  The board may not finance services and improvement
6-25     projects under this subchapter unless a written petition requesting
6-26     those improvements or services has been filed with the board.  The
6-27     petition must be signed by:
6-28                 (1)  the owners of a majority of the assessed value of
6-29     real property in the district as determined by the most recent
6-30     certified county property tax rolls; or
6-31                 (2)  at least 50 persons who own land in the district,
6-32     if there are more than 50 persons who own property in the district
6-33     as determined by the most recent certified county property tax
6-34     rolls.
6-35           Sec. 376.316.  NONPROFIT CORPORATION.  (a)  The board by
6-36     resolution may authorize the creation of a nonprofit corporation to
6-37     assist and act on behalf of the district in implementing a project
6-38     or providing a service authorized by this subchapter.
6-39           (b)  The board shall appoint the board of directors of a
6-40     nonprofit corporation created under this section.  The board of
6-41     directors of  the nonprofit corporation shall serve in the same
6-42     manner as, for the same term as, and on the conditions of the board
6-43     of directors of a local government corporation created under
6-44     Chapter 431, Transportation Code.
6-45           (c)  A nonprofit corporation created under this section has
6-46     the powers of and is considered for purposes of this subchapter to
6-47     be a local government corporation created under Chapter 431,
6-48     Transportation Code.
6-49           (d)  A nonprofit corporation created under this section may
6-50     implement any project and provide any services authorized by this
6-51     subchapter.
6-52           Sec. 376.317.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
6-53     board by resolution shall establish the number of directors'
6-54     signatures and the procedure required for a disbursement or
6-55     transfer of the district's money.
6-56           Sec. 376.318.  BONDS.  (a)  The district may issue bonds or
6-57     other obligations payable in whole or in part from ad valorem
6-58     taxes, assessments, impact fees, revenues, grants, or other money
6-59     of the district, or any combination of those sources of money, to
6-60     pay for any authorized purpose of the district.
6-61           (b)  Bonds or other obligations of the district may be issued
6-62     in the form of bonds, notes, certificates of participation,
6-63     including other instruments evidencing a proportionate interest in
6-64     payments to be made by the district, or other obligations that are
6-65     issued in the exercise of the district's borrowing power and may be
6-66     issued in bearer or registered form or not represented by an
6-67     instrument but the transfer of which is registered on books
6-68     maintained by or on behalf of the district.  The board may impose
6-69     and collect an assessment under Subchapter F, Chapter 375, for any
 7-1     purpose authorized by this subchapter or by Chapter 375.
 7-2           (c)  Except as provided by Subsection (d), the district must
 7-3     obtain the municipality's approval of:
 7-4                 (1)  the issuance of bonds for an improvement project;
 7-5                 (2)  the plans and specifications of the improvement
 7-6     project to be financed by the bonds; and
 7-7                 (3)  the plans and specifications of a district
 7-8     improvement project related to:
 7-9                       (A)  the use of land owned by the municipality;
7-10                       (B)  an easement granted by the municipality; or
7-11                       (C)  a right-of-way of a street, road, or
7-12     highway.
7-13           (d)  If the district obtains the municipality's approval of a
7-14     capital improvements budget for a specified period not to exceed
7-15     five years, the district may finance the capital improvements and
7-16     issue bonds specified in the budget without further municipal
7-17     approval.
7-18           (e)  Before the district issues bonds, the district shall
7-19     submit the bonds and the record of proceedings of the district
7-20     relating to authorization of the bonds to the attorney general for
7-21     approval as provided by Chapter 53, Acts of the 70th Legislature,
7-22     2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
7-23     Statutes).
7-24           Sec. 376.319.  ASSESSMENTS.  (a)  The board may impose and
7-25     collect an assessment for any purpose authorized by this
7-26     subchapter.
7-27           (b)  Assessments, reassessments, or assessments resulting
7-28     from an addition to or correction of the assessment roll by the
7-29     district, penalties and interest on an assessment or reassessment,
7-30     expenses of collection, and reasonable attorney's fees incurred by
7-31     the district:
7-32                 (1)  are a first and prior lien against the property
7-33     assessed;
7-34                 (2)  are superior to any other lien or claim other than
7-35     a lien or claim for county, school district, or municipal ad
7-36     valorem taxes; and
7-37                 (3)  are the personal liability of and charge against
7-38     the owners of the property even if the owners are not named in the
7-39     assessment proceedings.
7-40           (c)  The lien is effective from the date of the resolution of
7-41     the board levying the assessment until the assessment is paid.  The
7-42     board may enforce the lien in the same manner that the board may
7-43     enforce an ad valorem tax lien against real property.
7-44           Sec. 376.320.  PROPERTY EXEMPTED FROM TAX, FEE, OR
7-45     ASSESSMENT.  (a)  The district may not impose a tax, impact fee, or
7-46     assessment on a residential property, multiunit residential
7-47     property, or condominium.
7-48           (b)  The district may not impose an impact fee or assessment
7-49     on the property, equipment, or facilities of a utility.
7-50           Sec. 376.321.  ELECTIONS.  (a)  In addition to the elections
7-51     the district must hold under Subchapter L, Chapter 375, the
7-52     district shall hold an election in the manner provided by that
7-53     subchapter to obtain voter approval before the district imposes a
7-54     maintenance tax or issues bonds payable from ad valorem taxes or
7-55     assessments.
7-56           (b)  The board may submit multiple purposes in a single
7-57     proposition at an election.
7-58           Sec. 376.322.  IMPACT FEES.  The district may impose an
7-59     impact fee for an authorized purpose as provided by Subchapter G,
7-60     Chapter 375.
7-61           Sec. 376.323.  MAINTENANCE TAX.  (a)  If authorized at an
7-62     election held in accordance with Section 376.321, the district may
7-63     impose and collect an annual ad valorem tax on taxable property in
7-64     the district for the maintenance and operation of the district and
7-65     the improvements constructed or acquired by the district or for the
7-66     provision of services.
7-67           (b)  The board shall determine the tax rate.
7-68           Sec. 376.324.  WORKFORCE DEVELOPMENT SERVICES AND PROJECTS.
7-69     (a)  As soon as possible after its creation, the district shall
 8-1     develop and implement a plan for workforce development services.
 8-2     The services may include:
 8-3                 (1)  job training;
 8-4                 (2)  workforce education;
 8-5                 (3)  financing of special educational opportunities;
 8-6                 (4)  student summer work programs; or
 8-7                 (5)  other projects that promote workforce development.
 8-8           (b)  The district's initial plan under Subsection (a)  must
 8-9     be for a period of at least five years.  For the first five years
8-10     of the plan, the district shall allocate to the services listed in
8-11     Subsection (a) not less than three percent of its assessment
8-12     revenues.
8-13           (c)  The district may develop and implement additional plans
8-14     under Subsection (a).
8-15           (d)  To assist in implementing this section, the district
8-16     may:
8-17                 (1)  accept a donation, grant, or loan from any person;
8-18                 (2)  work with schools of all levels;
8-19                 (3)  work with any person that provides workforce
8-20     development funds or projects; or
8-21                 (4)  participate with other entities.
8-22           Sec. 376.325.  DISSOLUTION OF DISTRICT.  The district may be
8-23     dissolved as provided by Subchapter M, Chapter 375.  If the
8-24     district has debt and is dissolved, the district shall remain in
8-25     existence solely for the limited purpose of discharging its bonds
8-26     or other obligations according to their terms.
8-27           Sec. 376.326.  CONTRACTS.  (a)  To protect the public
8-28     interest, the district may contract with the municipality or the
8-29     county for the municipality or county to provide law enforcement
8-30     services in the district for a fee.
8-31           (b)  The municipality, the county, or another political
8-32     subdivision of the state, without further authorization, may
8-33     contract with the district to implement a project of the district
8-34     or assist the district in providing the services authorized under
8-35     this subchapter.  A contract under this subsection may:
8-36                 (1)  be for a period on which the parties agree;
8-37                 (2)  include terms on which the parties agree;
8-38                 (3)  be payable from taxes or any other sources of
8-39     revenue that may be available for that purpose; or
8-40                 (4)  provide that taxes or other revenue collected at a
8-41     district project or from a person using or purchasing a commodity
8-42     or service at a district project may be paid or rebated to the
8-43     district under the terms of the contract.
8-44           (c)  The district may enter into a contract, lease, or other
8-45     agreement with or make or accept grants and loans to or from:
8-46                 (1)  the United States;
8-47                 (2)  the state or a state agency;
8-48                 (3)  a county, a municipality, or another political
8-49     subdivision of the state;
8-50                 (4)  a public or private corporation, including a
8-51     nonprofit corporation created by the board under this subchapter;
8-52     or
8-53                 (5)  any other person.
8-54           (d)  The district may perform all acts necessary for the full
8-55     exercise of the powers vested in the district on terms and for the
8-56     period the board determines advisable.
8-57           SECTION 2.  The legislature finds that:
8-58                 (1)  proper and legal notice of the intention to
8-59     introduce this Act, setting forth the general substance of this
8-60     Act, has been published as provided by law, and the notice and a
8-61     copy of this Act have been furnished to all persons, agencies,
8-62     officials, or entities to which they are required to be furnished
8-63     by the constitution and laws of this state, including the governor,
8-64     who has submitted the notice and Act to the Texas Natural Resource
8-65     Conservation Commission;
8-66                 (2)  the Texas Natural Resource Conservation Commission
8-67     has filed its recommendations relating to this Act with the
8-68     governor, lieutenant governor, and speaker of the house of
8-69     representatives within the required time;
 9-1                 (3)  the general law relating to consent by political
 9-2     subdivisions to the creation of districts with conservation,
 9-3     reclamation, and road powers and the inclusion of land in those
 9-4     districts has been complied with; and
 9-5                 (4)  all requirements of the constitution and laws of
 9-6     this state and the rules and procedures of the legislature with
 9-7     respect to the notice, introduction, and passage of this Act have
 9-8     been fulfilled and accomplished.
 9-9           SECTION 3.  Notwithstanding Section 376.309, Local Government
9-10     Code, as added by this Act:
9-11                 (1)  the initial board of directors of the East
9-12     Downtown Management District consists of:
9-13           Pos. No.          Name of Director
9-14           1                 Alfred Bennet
9-15           2                 Charlie Chea
9-16           3                 Peggy Foreman
9-17           4                 Sean Gorman
9-18           5                 Alan Gover
9-19           6                 Tri La
9-20           7                 Dan Nip
9-21           8                 Grant Martin
9-22           9                 Andy Moran
9-23           10                Bill Chu
9-24           11                Bob Eury
9-25           12                Wayne Galt
9-26           13                Dennis Greer
9-27           14                Ringo Kwan
9-28           15                Mark Lay
9-29           16                Al Odam
9-30           17                Roger Russel; and
9-31                 (2)  of the initial board, members in positions 1-9
9-32     serve terms that expire June 1, 2003, and members in positions
9-33     10-17 serve terms that expire June 1, 2001.
9-34           SECTION 4.  The importance of this legislation and the
9-35     crowded condition of the calendars in both houses create an
9-36     emergency and an imperative public necessity that the
9-37     constitutional rule requiring bills to be read on three several
9-38     days in each house be suspended, and this rule is hereby suspended,
9-39     and that this Act take effect and be in force from and after its
9-40     passage, and it is so enacted.
9-41                                  * * * * *