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 * * * * *