Amend HB 3692 by striking all below the enacting clause and substituting the following: SECTION 1. Chapter 376, Local Government Code, is amended by adding Subchapter K to read as follows: SUBCHAPTER K. GREATER SOUTHEAST MANAGEMENT DISTRICT Sec. 376.451. CREATION OF DISTRICT. (a) A special district to be known as the "Greater Southeast Management District" exists as a political subdivision of the state. (b) The name of the district may be changed by resolution of the board. (c) The creation of the district is essential to accomplish the purposes of Section 52, Article III, Section 59, Article XVI, and Section 52-a, Article III, Texas Constitution, and other public purposes stated in this subchapter. Sec. 376.452. DECLARATION OF INTENT. (a) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, arts, entertainment, economic development, safety, and the public welfare in the southeast area of the city of Houston. (b) The creation of the district and this legislation are not to be interpreted to relieve the county or the municipality from providing the level of services, as of the effective date of this subchapter, to the area in the district or to release the county or the municipality from the obligations each entity has to provide services to that area. The district is created to supplement and not supplant the municipal or county services provided in the area in the district. (c) By creating the district and in authorizing the municipality, county, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. Sec. 376.453. DEFINITIONS. In this subchapter: (1) "Board" means the board of directors of the district. (2) "County" means Harris County, Texas. (3) "District" means the Greater Southeast Management District. (4) "Municipality" means the City of Houston, Texas. Sec. 376.454. BOUNDARIES. The district includes all the territory contained in the following described area: BEGINNING at a point being the point of intersection of the centerline of the right-of-way of interstate 45 and the centerline of the intersection of HB & TRR; THENCE, in a south westerly direction along the centerline of HB & TRR to the intersection or Wheeler Street; THENCE, continuing in a southeasterly direction along the centerline of HB & TRR, and to the intersection of the T & no RR (Greater Houston & S.A.R.R.); THENCE, east along T & No RR to the rear lot lines of all business facing the West Property line on South Wayside Street; THENCE, south parallel more or less to South Wayside to the South Loop East passing its South property line to the rear property line of all lots fronting on the South Loop East; THENCE, west parallel to the South Loop East more or less along the rear lines of all property fronting on the south property line of the South Loop East passing Myakawa Road to the West line of Martin Luther King Street; THENCE, along the rear property line of the lots fronting the West R.O.W. line of Martin Luther King Street to the north line of Browncroft Street; THENCE west along the north line of Browncroft St. passing USA Lane to the south continuing in a generally west direction to the west line of Milart Street; THENCE South along the west line of Milart Street to the southeast corner of tract 23 of the WCRR Co. Survey A 936; THENCE, west along the southerly property line of Tract 23 and 14B of the WCRR Co. Survey A 936 to the east line of Schroeder Street; THENCE northeasterly direction along the easterly line of Schoeder Road to its intersection with the southerly line on Griggs Road; THENCE in a northeasterly direction along the southerly line of Griggs Road to the intersection of the rear of the rear property line of the lot facing Grace Lane; THENCE in a southwesterly direction along the rear property line of the lots facing Grace lane to the intersection of the rear property line projection of all lots fronting, more or less the north line of Kingsbury Lane; THENCE westerly along the rear property line projection of all lots fronting the north line of Kingsbury Lane to the east right-of-way line of Calhoun Road; THENCE northeasterly along the easterly line of Calhoun Road to the rear property line projection of the lots fronting on Griggs Road; THENCE, west along the rear property line of all the lots fronting on Griggs Road to the east line of Cullen Road; THENCE, in a southerly direction along the east line of Cullen Road to the south line projection of Dixie Street; THENCE, in a westerly direction along the south line of Dixie Street, crossing St. Augustine Street, to the rear line of the lot facing St. Augustine Street; THENCE north to the rear lot line of the lots that front on Old Spanish Trail; THENCE west along the rear lot line of the lots that front on Old Spanish Trail to the rear property line of the lot that fronts on Scottcrest Street; THENCE north to the south right-of-way line of Old Spanish Trail; THENCE west to the intersection of the east line of Scott Crest Street; THENCE in a southwesterly direction to the rear property line of all lots that front Zephyr Street; THENCE in a westerly direction along the rear property line of the lots that front Zephyr Street to west right-of-way line of LaSallette Drive; THENCE northwesterly along the west right-of-way line of LaSalette Drive to the intersection of the south right-of-way line of Old Spanish Trail; THENCE southwesterly along the south right-of-way line of Old Spanish Trail to rear property line of the corner lot fronting on Tierwester Street; THENCE south along the rear property line of the corner lot fronting on Tierwester Street to the southeast corner of this lot; THENCE west along the south line of the corner lot fronting on Tierwester Street to the east right-of-way line of Tiewester Street; THENCE southerly along the east right-of-way line of Tierwester Street to the south property line of Zephyr Street; THENCE west crossing Tierwester Street, where the street names changes from Zephyr Street to Southland Avenue and along the south line of Southland Avenue to the intersection of the south right-of-way line of Old Spanish Trail; THENCE in a southwesterly direction along the south line of Old Spanish Trail to the east line of Allegheny Street; THENCE south along the east right-of-way line of Allegheny Street the southeast corner of the first corner lot; THENCE east along the south line of the corner lot to the rear property line; THENCE south along the rear property line for one lot long to the southeast corner of this lot fronting on the east line of Allegeheny Street; THENCE west to the east property line of Alleghaney Street; THENCE in a southwesterly direction along the east right-of-way line of Alleghaney Street to the intersection of the north right-of-way line of Yellowstone Street; THENCE in a south easterly direction along the north right-of-way line of Yellowstone Street to the east right-of-way line of Peerless Street; THENCE in a southerly direction along the east right-of-way line of Peerless Street to the intersection of the south right-of-way line of Corder Street; THENCE, in a northwesterly direction along the southerly line of Corder Street crossing State Highway 288 in a straight line along the centerline of Nicholas Street to its intersection with the westerly line of Almeda Rd.; THENCE, in a southerly direction along the westerly line of Almeda Rd. to its intersection with the southerly line of El Paseo St; THENCE, in a westerly direction along the southerly line of El Paseo to its intersection with the westerly line of Knight Rd; THENCE, in a northerly direction along the centerline of Knight Rd. to its intersection with Fannin St; THENCE, along the centerline of Fannin Street in a northwesterly direction to the intersection of Holcombe Street; THENCE, west along the centerline of Holcombe Street to the intersection of South Main Street; THENCE, in a northeasterly direction along the centerline of South Main to Palm Street, and to the intersection with the boundaries of the Midtown TIRZ and Management District; THENCE, southeasterly with the Southerly R.O.W. of Palm Street to the easterly R.O.W. line of Fannin Street; THENCE, northeasterly, with the Easterly R.O.W. line of Fannin Street to the northerly R.O.W. line of US 59 South; THENCE, in an easterly, direction with curve to the left and in a northerly direction along the northerly R.O.W. line of US 59 South, to the intersection of the westerly R.O.W. line of State Highway 288 which is also being US 59 North and crossing Interstate Highway 45 (Gulf Freeway) to the Northerly R.O.W. line thereof; said point also being the Northwest boundary corner of the Midtown TIRZ & Management District; THENCE, southeasterly direction along the north right-of-way line of Interstate Highway 45 and to the POINT OF BEGINNING, containing 19,400 acres more or less, SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, facilities, and improvements owned by an electric utility or a power generation company as defined by Section 31.002, Utilities Code, or a gas utility as defined by Sections 101.003 and 121.001, Utilities Code. Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The boundaries and field notes of the district form a closure. If a mistake is made in the field notes or in copying the field notes in the legislative process, the mistake does not in any way affect the: (1) organization, existence, and validity of the district; (2) right of the district to issue any type of bonds or refunding bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds; (3) right of the district to impose and collect assessments or taxes; or (4) legality or operation of the district or its governing body. Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All the land and other property included in the district will be benefited by the improvements and services to be provided by the district under powers conferred by Section 52, Article III, Section 59, Article XVI, and Section 52-a, Article III, Texas Constitution, and other powers granted under this subchapter, and the district is created to serve a public use and benefit. (b) The creation of the district is in the public interest and is essential to: (1) further the public purposes of the development and diversification of the economy of the state; and (2) eliminate unemployment and underemployment and develop or expand transportation and commerce. (c) The district will: (1) promote the health, safety, and general welfare of residents, employers, employees, visitors, consumers in the district, and the general public; (2) provide money to preserve, maintain, and enhance the economic health and vitality of the district as a community and business center; and (3) further promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic and aesthetic beauty. (d) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement. (e) The district will not act as the agent or instrumentality of any private interest even though many private interests will be benefited by the district, as will the general public. Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise provided by this subchapter, Chapter 375 applies to the district and its governing body and employees. Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter shall be liberally construed in conformity with the findings and purposes stated in this subchapter. Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The district is governed by a board of 21 directors who serve staggered terms of four years, with 10 members' terms expiring June 1 of an odd-numbered year and 11 members' terms expiring June 1 of the following odd-numbered year. The board may increase or decrease the number of directors on the board by resolution, provided that it is in the best interest of the district to do so and that the board consists of not fewer than 9 and not more than 30 directors. (b) Subchapter D, Chapter 375, applies to the board to the extent that subchapter does not conflict with this subchapter. The imposition of a tax, assessment, or impact fee requires a vote of a majority of the directors serving. Directors may vote on any matter authorized by Subchapter D, Chapter 375, and action may be taken by the board only if it is approved in the manner prescribed by Subchapter D, Chapter 375. Sec. 376.460. APPOINTMENT OF DIRECTORS; VACANCY. The mayor and members of the governing body of the municipality shall appoint directors from persons recommended by the board who meet the qualifications of Subchapter D, Chapter 375. A vacancy in the office of director because of the death, resignation, or removal of a director shall be filled by the remaining members of the board by appointing a qualified person for the unexpired term. Sec. 376.461. POWERS OF DISTRICT. The district has: (1) all powers necessary or required to accomplish the purposes for which the district was created; (2) the rights, powers, privileges, authority, and functions of a district created under Chapter 375; (3) the powers given to a corporation under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), and the power to own, operate, acquire, construct, lease, improve, and maintain projects; (4) the power to impose ad valorem taxes, assessments, or impact fees in accordance with Chapter 375 to provide improvements and services for a project or activity the district is authorized to acquire, construct, improve, or provide under this subchapter; (5) the power to correct, add to, or delete assessments from its assessment rolls after notice and hearing as provided by Subchapter F, Chapter 375; and (6) the powers given to a housing finance corporation created under Chapter 394 to provide housing or residential development projects in the district. Sec. 376.462. EMINENT DOMAIN. The district may not exercise the power of eminent domain. Sec. 376.463. EX OFFICIO BOARD MEMBERS. (a) The following persons shall serve as nonvoting ex officio directors: (1) the director of the following departments of the municipality: (A) parks and recreation; (B) planning and development; (C) public works; and (D) civic center; (2) the municipality's chief of police; (3) the general manager of the Metropolitan Transit Authority; and (4) the presidents of any institutions of higher learning located in the district. (b) If a department described by Subsection (a) is consolidated, renamed, or changed, the board may appoint a director of the consolidated, renamed, or changed department as a nonvoting ex officio board member. If a department described by Subsection (a) is abolished, the board may appoint a representative of another department of the municipality that performs duties comparable to those performed by the abolished department. (c) The board may appoint the presiding officer of a nonprofit corporation that is actively involved in activities in the municipality's midtown area to serve as a nonvoting ex officio director. Sec. 376.464. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a) Except as provided in this section: (1) a director may participate in all board votes and decisions; and (2) Chapter 171 governs conflicts of interest for board members. (b) Section 171.004 does not apply to the district. A director who has a substantial interest in a business or charitable entity that will receive a pecuniary benefit from a board action shall file a one-time affidavit declaring the interest. An additional affidavit is not required if the director's interest changes. After the affidavit is filed with the board secretary, the director may participate in a discussion or vote on that action if: (1) a majority of the directors have a similar interest in the same entity; or (2) all other similar business or charitable entities in the district will receive a similar pecuniary benefit. (c) A director who is also an officer or employee of a public entity may not participate in the discussion of or vote on a matter regarding a contract with that same public entity. (d) For purposes of this section, a director has a substantial interest in a charitable entity in the same manner that a person would have a substantial interest in a business entity under Section 171.002. Sec. 376.465. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS AFFECTING PROPERTY. (a) If the district, in exercising a power conferred by this subchapter, requires a relocation, adjustment, raising, lowering, rerouting, or changing of the grade or the construction of any of the following items, the district must take that required action at the sole expense of the district: (1) a street, alley, highway, overpass, underpass, road, railroad track, bridge, facility, or other property; (2) an electric line, conduit, facility, or other property; (3) a telephone or telegraph line, conduit, facility, or other property; (4) a gas transmission or distribution pipe, pipeline, main, facility, or other property; (5) a water, sanitary sewer, or storm sewer pipe, pipeline, main, facility, or other property; (6) a cable television line, cable, conduit, facility, or other property; or (7) another pipeline, facility, or other property relating to the pipeline. (b) The district shall bear damages that are suffered by owners of the facility or other property. Sec. 376.466. RELATION TO OTHER LAW. If any provision of general law, including a law referenced in this subchapter, is in conflict with or is inconsistent with this subchapter, this subchapter prevails. Any law referenced in this subchapter that is not in conflict or inconsistent with this subchapter is adopted and incorporated by reference. Sec. 376.467. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. The board may not finance services and improvement projects under this subchapter unless a written petition requesting those improvements or services has been filed with the board. The petition must be signed by: (1) the owners of a majority of the assessed value of real property in the district as determined by the most recent certified county property tax rolls; or (2) at least 50 persons who own land in the district, if there are more than 50 persons who own property in the district as determined by the most recent certified county property tax rolls. Sec. 376.468. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act on behalf of the district in implementing a project or providing a service authorized by this subchapter. (b) The board shall appoint the board of directors of a nonprofit corporation created under this section. The board of directors of the nonprofit corporation shall serve in the same manner as, for the same term as, and on the conditions of the board of directors of a local government corporation created under Chapter 431, Transportation Code. (c) A nonprofit corporation created under this section has the powers of and is considered for purposes of this subchapter to be a local government corporation created under Chapter 431, Transportation Code. (d) A nonprofit corporation created under this section may implement any project and provide any services authorized by this subchapter. Sec. 376.469. DISBURSEMENTS OR TRANSFERS OF FUNDS. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. Sec. 376.470. BONDS. (a) The district may issue bonds or other obligations payable in whole or in part from ad valorem taxes, assessments, impact fees, revenues, grants, or other money of the district, or any combination of those sources of money, to pay for any authorized purpose of the district. (b) Bonds or other obligations of the district may be issued in the form of bonds, notes, certificates of participation, including other instruments evidencing a proportionate interest in payments to be made by the district, or other obligations that are issued in the exercise of the district's borrowing power and may be issued in bearer or registered form or not represented by an instrument but the transfer of which is registered on books maintained by or on behalf of the district. The board may impose and collect an assessment under Subchapter F, Chapter 375, for any purpose authorized by this subchapter or by Chapter 375. (c) Except as provided by Subsection (d), the district must obtain the municipality's approval of: (1) the issuance of bonds for an improvement project; (2) the plans and specifications of the improvement project to be financed by the bonds; and (3) the plans and specifications of a district improvement project related to: (A) the use of land owned by the municipality; (B) an easement granted by the municipality; or (C) a right-of-way of a street, road, or highway. (d) If the district obtains the municipality's approval of a capital improvements budget for a specified period not to exceed five years, the district may finance the capital improvements and issue bonds specified in the budget without further municipal approval. (e) Before the district issues bonds, the district shall submit the bonds and the record of proceedings of the district relating to authorization of the bonds to the attorney general for approval as provided by Chapter 1202, Government Code. Sec. 376.471. ASSESSMENTS. (a) The board may impose and collect an assessment for any purpose authorized by this subchapter. (b) Assessments, reassessments, or assessments resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, expenses of collection, and reasonable attorney's fees incurred by the district: (1) are a first and prior lien against the property assessed; (2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and (3) are the personal liability of and charge against the owners of the property even if the owners are not named in the assessment proceedings. (c) The lien is effective from the date of the resolution of the board levying the assessment until the assessment is paid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property. Sec. 376.472. PROPERTY EXEMPTED FROM TAX, FEE, OR ASSESSMENT. (a) The district may not impose a tax, impact fee, or assessment on a residential property or condominium. (b) The district may not impose an impact fee or assessment on the property, equipment, or facilities of a utility. In this subsection, "utility" means a person that provides to the public cable television, gas, light, power, telephone, sewerage, or water service. Sec. 376.473. ELECTIONS. (a) In addition to the elections the district must hold under Subchapter L, Chapter 375, the district shall hold an election in the manner provided by that subchapter to obtain voter approval before the district imposes a maintenance tax or issues bonds payable from ad valorem taxes or assessments. (b) The board may submit multiple purposes in a single proposition at an election. Sec. 376.474. IMPACT FEES. The district may impose an impact fee for an authorized purpose as provided by Subchapter G, Chapter 375. Sec. 376.475. MAINTENANCE TAX. (a) If authorized at an election held in accordance with Section 376.473, the district may impose and collect an annual ad valorem tax on taxable property in the district for the maintenance and operation of the district and the improvements constructed or acquired by the district or for the provision of services. (b) The board shall determine the tax rate. Sec. 376.476. DISSOLUTION OF DISTRICT. The district may be dissolved as provided by Subchapter M, Chapter 375. If the district has debt and is dissolved, the district shall remain in existence solely for the limited purpose of discharging its bonds or other obligations according to their terms. Sec. 376.477. CONTRACTS. (a) To protect the public interest, the district may contract with the municipality or the county for the municipality or county to provide law enforcement services in the district for a fee. (b) The municipality, the county, or another political subdivision of the state, without further authorization, may contract with the district to implement a project of the district or assist the district in providing the services authorized under this subchapter. A contract under this subsection may: (1) be for a period on which the parties agree; (2) include terms on which the parties agree; (3) be payable from taxes or any other sources of revenue that may be available for that purpose; or (4) provide that taxes or other revenue collected at a district project or from a person using or purchasing a commodity or service at a district project may be paid or rebated to the district under the terms of the contract. (c) The district may enter into a contract, lease, or other agreement with or make or accept grants and loans to or from: (1) the United States; (2) the state or a state agency; (3) a county, a municipality, or another political subdivision of the state; (4) a public or private corporation, including a nonprofit corporation created by the board under this subchapter; or (5) any other person. (d) The district may perform all acts necessary for the full exercise of the powers vested in the district on terms and for the period the board determines advisable. Sec. 376.478. COMPETITIVE BIDDING UNIT. Section 375.221 does not apply to the district unless the contract is for more than $25,000. Sec. 376.479. ANNEXATION. The district may: (1) annex territory as provided by Subchapter C, Chapter 375; and (2) annex territory located inside the boundaries of a reinvestment zone created by the municipality under Chapter 311, Tax Code, if the governing body of the municipality consents to the annexation. Sec. 376.480. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may make an agreement with or accept a donation, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. (c) To protect the public interest, the district may contract with the municipality or the county for the municipality or county to provide law enforcement services in the district for a fee. SECTION 2. The legislature finds that: (1) proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the Texas Natural Resource Conservation Commission; (2) the Texas Natural Resource Conservation Commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time; (3) the general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with; and (4) all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished. SECTION 3. Notwithstanding Section 376.459, Local Government Code, as added by this Act: (1) the initial board of directors of the Greater Southeast Management District consists of: Pos. No. Name of Director 1 Walter Strickland 2 Francis Page 3 Algenita Scott Davis 4 Ashley Smith 5 Zinetta A. Burney 6 Mark Moreno 7 Alan Bergeron 8 Barron Wallace 9 John Medina 10 Teddy McDavid 11 Robert Muhammad 12 Brian Smith 13 David Dang 14 Adele Maxie 15 Robert Dixon 16 Susan Young 17 James J. Smith 18 Richard Wainerdi 19 Ali Ashan 20 Walter Johnson 21 Jim Arnold; and (2) of the initial board, members in positions 1-11 serve terms that expire June 1, 2005, and members in positions 12-21 serve terms that expire June 1, 2003. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2001.