By Callegari H.B. No. 2998 77R9163 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Energy Corridor Management 1-3 District; providing authority to impose a tax and issue bonds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 376, Local Government Code, is amended by 1-6 adding Subchapter ___ to read as follows: 1-7 SUBCHAPTER___. ENERGY CORRIDOR MANAGEMENT DISTRICT 1-8 Sec. 376. . CREATION OF DISTRICT. (a) The Energy Corridor 1-9 Management District is created as a special district under Section 1-10 59, Article XVI, Texas Constitution. 1-11 (b) The board by resolution may change the district's name. 1-12 (c) The creation of the district is essential to accomplish 1-13 the purposes of Sections 52 and 52-a, Article III, and Section 59, 1-14 Article XVI, Texas Constitution, and other public purposes stated 1-15 in this subchapter. 1-16 Sec. 376. . DECLARATION OF INTENT. (a) The creation of the 1-17 district is necessary to promote, develop, encourage, and maintain 1-18 employment, commerce, transportation, housing, tourism, recreation, 1-19 arts, entertainment, economic development, safety, and the public 1-20 welfare in the area of the district. 1-21 (b) The creation of the district and this legislation are 1-22 not to be interpreted to relieve the county or the municipality 1-23 from providing the level of services, as of the effective date of 1-24 this subchapter, to the area in the district or to release the 2-1 county or the municipality from the obligations each entity has to 2-2 provide services to that area. The district is created to 2-3 supplement and not supplant the municipal or county services 2-4 provided in the area in the district. 2-5 (c) By creating the district and in authorizing the 2-6 municipality, county, and other political subdivisions to contract 2-7 with the district, the legislature has established a program to 2-8 accomplish the public purposes set out in Section 52-a, Article 2-9 III, Texas Constitution. 2-10 Sec. 376.303. DEFINITIONS. In this subchapter: 2-11 (1) "Board" means the board of directors of the 2-12 district. 2-13 (2) "County" means Harris County. 2-14 (3) "District" means the Energy Corridor Management 2-15 District. 2-16 (4) "Municipality" means the City of Houston. 2-17 (5) "Utility" means a person that provides to the 2-18 public gas, electricity, telephone, sewage, or water service. 2-19 Sec. 376. . BOUNDARIES. The district includes all the 2-20 territory contained within the following described area: 2-21 BEGINNING at a point at the intersection of the south 2-22 right-of-way line of Interstate Highway 10 and the west 2-23 right-of-way line of North Kirkwood Road; 2-24 THENCE in a southerly direction with the west right-of-way 2-25 line of said North Kirkwood Road to the north line Nottingham West, 2-26 Section 3; 2-27 THENCE in a southwesterly direction with the north line of 3-1 said Nottingham West, Section 3, to the east line of Memorial Club 3-2 Townhomes, Section 2; 3-3 THENCE in a northerly direction with the east line of said 3-4 Memorial Club Townhomes, Section 2, to the northeast corner of said 3-5 Memorial Club Townhomes, Section 2; 3-6 THENCE in a westerly direction with the north line of said 3-7 Memorial Club Townhomes, Section 2, to the cul-de-sac south 3-8 right-of-way line of Lost Meadow Lane; 3-9 THENCE in a westerly direction with the south right-of-way 3-10 line of said Lost Meadow Lane projected to the east right-of-way 3-11 line of Still Meadow Drive; 3-12 THENCE in a southerly and westerly direction with the east 3-13 and south right-of-way line of said Still Meadow Drive to the east 3-14 right-of-way line of Tully Road; 3-15 THENCE in a southerly direction with the east right-of-way 3-16 line of said Tully Road to a line approximately 267 feet south of 3-17 the south right-of-way line of St. Mary's Street; 3-18 THENCE in a westerly direction with said line to the east 3-19 right-of-way line of Dairy Ashford Road; 3-20 THENCE in a southerly direction with the east right-of-way 3-21 line of said Dairy Ashford Road to the south right-of-way line of 3-22 Barryknoll Lane; 3-23 THENCE in a northwesterly direction with the south 3-24 right-of-way line of said Barryknoll Lane to the southeast 3-25 right-of-way line of Threadneedle Street; 3-26 THENCE in a northerly direction with the southeast 3-27 right-of-way line of Threadneedle Street to the south right-of-way 4-1 line of said Interstate Highway 10; 4-2 THENCE in a westerly direction with the south right-of-way 4-3 line of said Interstate Highway 10 to the west line of a Harris 4-4 County Flood Control Ditch and the west line of London Lane 4-5 Townhomes; 4-6 THENCE in a southerly direction with the west line of said 4-7 London Lane Townhomes and the east line of Memorial Oaks Cemetery 4-8 to the southwest corner of West Bayou Oaks Townhomes; 4-9 THENCE in an easterly direction with the south line of said 4-10 West Bayou Oaks Townhomes and a north line of said Memorial Oaks 4-11 Cemetery to the south right-of-way line of said Barryknoll Lane; 4-12 THENCE in a southerly direction with the east line of said 4-13 Memorial Oaks Cemetery approximately 320 feet to a point; 4-14 THENCE in an easterly direction continuing with the east line 4-15 of said Memorial Oaks Cemetery approximately 151 feet to a point; 4-16 THENCE in a southerly direction continuing with the east line 4-17 of said Memorial Oaks Cemetery to the north line of Thornwood, 4-18 Section 4; 4-19 THENCE in a westerly direction with a south line of said 4-20 Memorial Oaks Cemetery and the north line of said Thornwood, 4-21 Section 4, to the most westerly northwest corner of said Thornwood, 4-22 Section 4; 4-23 THENCE in a southwesterly direction with the west line of 4-24 said Thornwood, Section 4, and a southeast line of said Memorial 4-25 Oaks Cemetery to the southwest right-of-way line of Memorial Drive 4-26 and the north line of Woods on Memorial, Section 1; 4-27 THENCE in a westerly direction with the north line of Woods 5-1 on Memorial, Section 1, to the east right-of-way line of Eldridge 5-2 Road; 5-3 THENCE in a southwesterly direction with the east 5-4 right-of-way line of said Eldridge Road to the northeast line of 5-5 Buffalo Bayou; 5-6 THENCE in a southeasterly direction with the east line of 5-7 said Buffalo Bayou to the southeast line of Turkey Creek Townhomes; 5-8 THENCE in an easterly direction with the south line of said 5-9 Turkey Creek Townhomes and Turkey Creek Estates to the southeast 5-10 corner of said Turkey Creek Estates; 5-11 THENCE in a northerly direction with the east line of said 5-12 Turkey Creek Estates to the south line of Turkey Trail subdivision; 5-13 THENCE in an easterly direction with the south line of said 5-14 Turkey Trail subdivision to the west right-of-way line of said 5-15 Memorial Drive; 5-16 THENCE in a southeasterly direction with the west 5-17 right-of-way line of said Memorial Drive to the west right-of-way 5-18 line of Nottingham Oaks Trail; 5-19 THENCE in a southerly direction with the west right-of-way 5-20 line of said Nottingham Oaks Trail to the north line of Nottingham 5-21 Forest, Section 8; 5-22 THENCE in a westerly direction with the north line of said 5-23 Nottingham Forest, Section 8, to the east line of said Buffalo 5-24 Bayou; 5-25 THENCE in a southeasterly direction with the east line of 5-26 said Buffalo Bayou to the east line of the J. Wheaton Survey, A-80; 5-27 THENCE in a southerly direction with the east line of said J. 6-1 Wheaton Survey, A-80 to the south line of the said Myriad 6-2 Apartments; 6-3 THENCE in a westerly direction with the south line of the 6-4 Myriad Apartments to the east line of Lakeside Enclave subdivision; 6-5 THENCE in a northerly direction with the east line of 6-6 Lakeside Enclave subdivision to the south right-of-way line of 6-7 Briar Forest Drive; 6-8 THENCE in a westerly direction with the south right-of-way 6-9 line of said Briar Forest Drive to the west line of said Lakeside 6-10 Enclave subdivision; 6-11 THENCE in a southerly direction with the west line of said 6-12 Lakeside Enclave subdivision to the north line of Parkway Plaza, 6-13 Section 2; 6-14 THENCE in a westerly direction with the north line of said 6-15 Parkway Plaza, Section 2, to the east right-of-way line of Eldridge 6-16 Road; 6-17 THENCE in a southerly direction with the east right-of-way 6-18 line of said Eldridge Road to the north right-of-way line of 6-19 Whittington Court; 6-20 THENCE in a westerly direction with the projected north 6-21 right-of-way line of said Whittington Court and south line of 6-22 Eldridge Road Apartments to the west line of said Eldridge Road 6-23 Apartments; 6-24 THENCE in a northerly direction with the west line of said 6-25 Eldridge Road Apartments and the east line of Lakes of Parkway, 6-26 Section 1, to the south right-of-way line of Goar Road; 6-27 THENCE in a westerly direction with the south right-of-way 7-1 line of said Goar Road to the east line of Lakes of Parkway, 7-2 Section 2; 7-3 THENCE in a northerly direction with the east line of said 7-4 Lakes of Parkway, Section 2, to the south right-of-way line of 7-5 Briar Forest Drive; 7-6 THENCE in a northerly direction with the east line of Parkway 7-7 Villages, Section 6, to the interior corner of said Parkway 7-8 Villages, Section 6; 7-9 THENCE in an easterly direction with the south line of said 7-10 Parkway Villages, Section 6, to the west right-of-way line of Park 7-11 Bayou Drive; 7-12 THENCE in a northerly direction with the west right-of-way 7-13 line of said Park Bayou Drive to the south right-of-way line of 7-14 Westerloch Drive; 7-15 THENCE in a westerly direction with the south right-of-way 7-16 line of said Westerloch Drive to the east right-of-way line of said 7-17 Park Bayou Drive; 7-18 THENCE in a northerly direction with the east right-of-way 7-19 line of said Park Bayou Drive to the north right-of-way line of 7-20 Briarhurst Drive; 7-21 THENCE in an easterly direction with the north right-of-way 7-22 line of said Briarhurst Drive to the west right-of-way line of 7-23 Eldridge Road; 7-24 THENCE in a northerly direction with the west right-of-way 7-25 line of said Eldridge Road to the north right-of-way line of 7-26 Parkway Plaza Drive; 7-27 THENCE in a northerly direction with the east line of Park on 8-1 Enclave subdivision crossing Enclave Parkway to the north line of 8-2 said Buffalo Bayou and the south line of Memorial Thicket, Section 8-3 3; 8-4 THENCE in an easterly direction with the north line of said 8-5 Buffalo Bayou and the south line of said Memorial Thicket, Section 8-6 3, to the west right-of-way line of South Mayde Drive; 8-7 THENCE in a northerly direction with the west right-of-way 8-8 line of said South Mayde Drive to the northeast corner of said 8-9 Memorial Thicket, Section 3; 8-10 THENCE in a westerly direction with the north line of said 8-11 Memorial Thicket, Section 3, to the northwest corner of said 8-12 Memorial Thicket, Section 3, located in the east line of Memorial 8-13 Thicket, Section 1; 8-14 THENCE in a northerly direction with the east line of said 8-15 Memorial Thicket, Section 1, to the northeast corner of said 8-16 Memorial Thicket, Section 1; 8-17 THENCE in a northwesterly direction with the north line of 8-18 said Memorial Thicket, Section 1, to the north right-of-way line of 8-19 Memorial Drive at the west right-of-way of Westlake Park Boulevard; 8-20 THENCE in a southwesterly direction with the north 8-21 right-of-way line of said Memorial Drive to the northeast corner of 8-22 Barker Place Townhomes; 8-23 THENCE in a westerly direction with the north line of said 8-24 Barker Place Townhomes to the east line of Barker Court Townhomes; 8-25 THENCE in a northerly direction with the east line of said 8-26 Barker Court Townhomes to the northeast corner of Barkers Landing 8-27 subdivision located in the south right-of-way line of Grisby Road; 9-1 THENCE in a westerly direction with the south right-of-way 9-2 line of said Grisby Road to the northwest corner of said Barkers 9-3 Landing, Section 3; 9-4 THENCE in a southerly direction with the west line of said 9-5 Barkers Landing, Section 3, to the north right-of-way line of North 9-6 Barker's Landing Road; 9-7 THENCE in a westerly direction with the north right-of-way 9-8 line of said North Barker's Landing Road to the east right-of-way 9-9 line of Addicks Howell Road; 9-10 THENCE in a southerly direction with the east right-of-way 9-11 line of said Addicks Howell Road to the north right-of-way line of 9-12 said Memorial Drive; 9-13 THENCE in a westerly direction with the north right-of-way 9-14 line of said Memorial Drive to the levee of Barker Reservoir; 9-15 THENCE in a northerly and westerly direction with the levee 9-16 of said Barker Reservoir and to the west right-of-way line of 9-17 Cypress Run; 9-18 THENCE in a northerly direction with the west right-of-way 9-19 line of said Cypress Run to the northeast corner of Green Trails 9-20 Crossing, Section 3; 9-21 THENCE in a westerly direction with the north line of said 9-22 Green Trails Crossing, Section 3, to the northwest corner of said 9-23 Green Trails Crossing, Section 3; 9-24 THENCE in a northerly direction with the projected west line 9-25 of said Green Trails Crossing, Section 3, to the south right-of-way 9-26 line of Interstate Highway 10; 9-27 THENCE in a northerly direction crossing Interstate Highway 10-1 10 and continuing with the west right-of-way line of Crush Avenue 10-2 to the levee of Addicks Reservoir; 10-3 THENCE in an easterly direction with the levee of said 10-4 Addicks Reservoir to the west line of Westwick, Section 1; 10-5 THENCE in a southerly direction with the west line of said 10-6 Westwick, Section 1, to the southwest corner of Westwick, Section 10-7 1; 10-8 THENCE in an easterly direction with the south line of said 10-9 Westwick, Section 1, to the west right-of-way line of North 10-10 Kirkwood Road; 10-11 THENCE in a southerly direction with the west right-of-way 10-12 line of said North Kirkwood Road to the POINT OF BEGINNING 10-13 save and except the entire limits of the Addicks Dam Subdivision 10-14 located north of Old Katy Road and West of Eldridge Parkway. 10-15 Sec. 376. . FINDINGS RELATING TO BOUNDARIES. The boundaries 10-16 and field notes of the district form a closure. If a mistake is 10-17 made in the field notes or in copying the field notes in the 10-18 legislative process, it does not affect the district's: 10-19 (1) organization, existence, or validity; 10-20 (2) right to issue any type of bond for the purposes 10-21 for which the district is created or to pay the principal of and 10-22 interest on a bond; 10-23 (3) right to impose or collect an assessment; or 10-24 (4) legality or operation. 10-25 Sec. 376. . FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 10-26 All the land and other property included in the district will be 10-27 benefitted by the improvements and services to be provided by the 11-1 district under powers conferred by Sections 52 and 52-a, Article 11-2 III, and Section 59, Article XVI, Texas Constitution, and other 11-3 powers granted under this subchapter, and the district is created 11-4 to serve a public use and benefit. 11-5 (b) The creation of the district is in the public interest 11-6 and is essential to: 11-7 (1) further the public purposes of the development and 11-8 diversification of the economy of the state; and 11-9 (2) eliminate unemployment and underemployment and 11-10 develop or expand transportation and commerce. 11-11 (c) The district will: 11-12 (1) promote the health, safety, and general welfare of 11-13 residents, employers, employees, visitors, consumers in the 11-14 district, and the general public; 11-15 (2) provide needed funding for the area in the 11-16 district to preserve, maintain, and enhance the economic health and 11-17 vitality of the area as a community and business center; and 11-18 (3) further promote the health, safety, welfare, and 11-19 enjoyment of the public by providing pedestrian ways and by 11-20 landscaping and developing certain areas in the district, which are 11-21 necessary for the restoration, preservation, and enhancement of 11-22 scenic and aesthetic beauty. 11-23 (d) Pedestrian ways along or across a street, whether at 11-24 grade or above or below the surface, and street lighting, street 11-25 landscaping, and street art objects are parts of and necessary 11-26 components of a street and are considered to be a street or road 11-27 improvement. 12-1 (e) The district will not act as the agent or 12-2 instrumentality of any private interest even though many private 12-3 interests will be benefitted by the district, as will the general 12-4 public. 12-5 Sec. 376. . APPLICATION OF OTHER LAW. Except as otherwise 12-6 provided by this subchapter: 12-7 (1) Chapter 375 applies to the district, its governing 12-8 body, and its employees; and 12-9 (2) the district has rights and powers of a district 12-10 created under Chapter 375. 12-11 Sec. 376. . LIBERAL CONSTRUCTION OF SUBCHAPTER. This 12-12 subchapter shall be liberally construed in conformity with the 12-13 findings and purposes stated in this subchapter. 12-14 Sec. 376. . BOARD OF DIRECTORS IN GENERAL. (a) The 12-15 district is governed by a board of nine directors who serve 12-16 staggered terms of four years, with four directors' terms expiring 12-17 June 1 of an odd-numbered year and five directors' terms expiring 12-18 June 1 of the following odd-numbered year. 12-19 (b) A director may receive compensation as provided by 12-20 Section 49.060, Water Code. 12-21 Sec. 376. . APPOINTMENT OF DIRECTORS. (a) The mayor and 12-22 members of the governing body of the municipality shall appoint 12-23 directors from persons recommended by the board. A person is 12-24 appointed if a majority of the members and the mayor vote to 12-25 appoint that person. 12-26 (b) A person may not be appointed to the board if the 12-27 appointment of that person would result in less than two-thirds of 13-1 the directors residing in the municipality. 13-2 (c) District directors are public officials entitled to 13-3 governmental immunity for their official actions. 13-4 Sec. 376. . EX OFFICIO BOARD MEMBERS. (a) The following 13-5 persons shall serve as a nonvoting ex officio director: 13-6 (1) the director of the following departments of the 13-7 municipality: 13-8 (A) parks and recreation; 13-9 (B) planning and development; 13-10 (C) public works; and 13-11 (D) civic center; 13-12 (2) the municipality's chief of police; 13-13 (3) the director of the engineering division of the 13-14 county department of public infrastructure; 13-15 (4) the Houston district engineer for the Texas 13-16 Department of Transportation; and 13-17 (5) the county's general manager of the Metropolitan 13-18 Transit Authority; and 13-19 (5) the presidents of any institutions of higher 13-20 learning located in the district. 13-21 (b) If a department described by Subsection (a) is 13-22 consolidated, renamed, or changed, the board may appoint a director 13-23 of the consolidated, renamed, or changed department as a nonvoting 13-24 ex officio board member. If a department described by Subsection 13-25 (a) is abolished, the board may appoint a representative of 13-26 another department of the municipality that performs duties 13-27 comparable to those performed by the abolished department. 14-1 Sec. 376. . CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a) 14-2 Except as provided in this section: 14-3 (1) a director may participate in all board votes and 14-4 decisions; and 14-5 (2) Chapter 171 governs conflict of interests for 14-6 board members. 14-7 (b) Section 171.004 does not apply to the district. A 14-8 director who has a substantial interest in a business or charitable 14-9 entity that will receive a pecuniary benefit from a board action 14-10 shall file a one-time affidavit declaring the interest. An 14-11 additional affidavit is not required if the director's interest 14-12 changes. After the affidavit is filed with the board secretary, the 14-13 director may participate in a discussion or vote on that action if: 14-14 (1) a majority of the directors have a similar 14-15 interest in the same entity; or 14-16 (2) all other similar business or charitable entities 14-17 in the district will receive a similar pecuniary benefit. 14-18 (c) A director who is also an officer or employee of a 14-19 public entity may not participate in the discussion of or vote on a 14-20 matter regarding a contract with that same public entity. 14-21 (d) For purposes of this section, a director has a 14-22 substantial interest in a charitable entity in the same manner that 14-23 a person would have a substantial interest in a business entity 14-24 under Section 171.002. 14-25 Sec. 376. . ADDITIONAL POWERS OF DISTRICT. (a) The 14-26 district may exercise the powers given to a corporation created 14-27 under Section 4B, Development Corporation Act of 1979 (Article 15-1 5190.6, Vernon's Texas Civil Statutes). 15-2 (b) The district may exercise the powers given to a housing 15-3 finance corporation created under Chapter 394 to provide housing or 15-4 residential development projects in the district. 15-5 (c) The district may finance, acquire, construct, improve, 15-6 operate, maintain, or charge fees for the use of telecommunications 15-7 networks, fiber-optic cable, electronic transmission lines, or 15-8 other types of transmission lines and supporting facilities, or 15-9 conduits for such lines or facilities. 15-10 Sec. 376. . AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL 15-11 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may 15-12 make an agreement with or accept a donation, grant, or loan from 15-13 any person. 15-14 (b) The implementation of a project is a governmental 15-15 function or service for the purposes of Chapter 791, Government 15-16 Code. 15-17 (c) To protect the public interest, the district may 15-18 contract with the municipality or the county for the municipality 15-19 or county to provide law enforcement services in the district for a 15-20 fee. 15-21 Sec. 376. . NONPROFIT CORPORATION. (a) The board by 15-22 resolution may authorize the creation of a nonprofit corporation to 15-23 assist and act on behalf of the district in implementing a project 15-24 or providing a service authorized by this subchapter. 15-25 (b) The board shall appoint the board of directors of a 15-26 nonprofit corporation created under this section. The board of 15-27 directors of the nonprofit corporation shall serve in the same 16-1 manner, term, and conditions as a board of directors of a local 16-2 government corporation created under Chapter 431, Transportation 16-3 Code. 16-4 (c) A nonprofit corporation created under this section has 16-5 the powers of and is considered for purposes of this subchapter to 16-6 be a local government corporation created under Chapter 431, 16-7 Transportation Code. 16-8 (d) A nonprofit corporation created under this section may 16-9 implement any project and provide any service authorized by this 16-10 subchapter. 16-11 Sec. 376. . PETITION REQUIRED FOR FINANCING SERVICES AND 16-12 IMPROVEMENTS. The board may not finance a service or improvement 16-13 project under this subchapter unless a written petition requesting 16-14 the improvement or service has been filed with the board. The 16-15 petition must be signed by: 16-16 (1) the owners of a majority of the assessed value of 16-17 real property in the district as determined by the most recent 16-18 certified county property tax rolls; or 16-19 (2) at least 25 persons who own land in the district, 16-20 if there are more than 25 persons who own property in the district 16-21 as determined by the most recent certified county property tax 16-22 rolls. 16-23 Sec. 376. . ELECTIONS. (a) In addition to the elections 16-24 the district must hold under Subchapter L, Chapter 375, the 16-25 district shall hold an election in the manner provided by that 16-26 subchapter to obtain voter approval before the district imposes a 16-27 maintenance tax or issues bonds payable from ad valorem taxes or 17-1 assessments. 17-2 (b) The board may include more than one purpose in a single 17-3 proposition at an election. 17-4 Sec. 376. . MAINTENANCE TAX. (a) If authorized at an 17-5 election held in accordance with Section 376. , the district may 17-6 impose and collect an annual ad valorem tax on taxable property in 17-7 the district for the maintenance and operation of the district and 17-8 the improvements constructed or acquired by the district or for the 17-9 provision of services. 17-10 (b) The board shall determine the tax rate. 17-11 Sec. 376. . ASSESSMENTS. (a) The board may impose and 17-12 collect an assessment for any purpose authorized by this 17-13 subchapter. 17-14 (b) Assessments, including assessments resulting from an 17-15 addition to or correction of the assessment roll by the district, 17-16 reassessments, penalties and interest on an assessment or 17-17 reassessment, expenses of collection, and reasonable attorney's 17-18 fees incurred by the district: 17-19 (1) are a first and prior lien against the property 17-20 assessed; 17-21 (2) are superior to any other lien or claim other than 17-22 a lien or claim for county, school district, or municipal ad 17-23 valorem taxes; and 17-24 (3) are the personal liability of and charge against 17-25 the owners of the property even if the owners are not named in the 17-26 assessment proceedings. 17-27 (c) The lien is effective from the date of the resolution of 18-1 the board imposing the assessment until the assessment is paid. 18-2 The board may enforce the lien in the same manner that the board 18-3 may enforce an ad valorem tax lien against real property. 18-4 Sec. 376. . UTILITIES. The district may not impose an 18-5 assessment or impact fee on a utility's property. 18-6 Sec. 376. . BONDS. (a) The district may issue bonds or 18-7 other obligations payable in whole or in part from ad valorem 18-8 taxes, assessments, impact fees, revenues, grants, or other money 18-9 of the district, or any combination of those sources of money, to 18-10 pay for any authorized purpose of the district. 18-11 (b) Bonds or other obligations of the district may be issued 18-12 in the form of bonds, notes, certificates of participation, 18-13 including other instruments evidencing a proportionate interest in 18-14 payments to be made by the district, or other obligations that are 18-15 issued in the exercise of the district's borrowing power and may be 18-16 issued in bearer or registered form or not represented by an 18-17 instrument but the transfer of which is registered on books 18-18 maintained by or on behalf of the district. 18-19 Sec. 376. . MUNICIPAL APPROVAL. (a) Except as provided by 18-20 Subsection (b), the district must obtain approval from the 18-21 municipality's governing body of: 18-22 (1) the issuance of bonds for an improvement project; 18-23 and 18-24 (2) the plans and specifications of an improvement 18-25 project financed by the bonds. 18-26 (b) If the district obtains approval from the municipality's 18-27 governing body of a capital improvements budget for a period not to 19-1 exceed five years, the district may finance the capital 19-2 improvements and issue bonds specified in the budget without 19-3 further approval from the municipality. 19-4 (c) The district must obtain approval from the 19-5 municipality's governing body of the plans and specifications of 19-6 any district improvement project related to the use of land owned 19-7 by the municipality, an easement granted by the municipality, or a 19-8 right-of-way of a street, road, or highway. 19-9 (d) Except as provided by Section 375.263, a municipality is 19-10 not obligated to pay any bonds, notes, or other obligations of the 19-11 district. 19-12 Sec. 376. . DISBURSEMENTS OR TRANSFERS OF FUNDS. The board 19-13 by resolution shall establish the number of directors' signatures 19-14 and the procedure required for a disbursement or transfer of the 19-15 district's money. 19-16 Sec. 376. . COMPETITIVE BIDDING LIMIT. Section 375.221 does 19-17 not apply to the district unless the contract is for more than 19-18 $25,000. 19-19 Sec. 376. . EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 19-20 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 19-21 that has debt. If the vote is in favor of dissolution, the district 19-22 shall remain in existence solely for the limited purpose of 19-23 discharging its debts. The dissolution is effective when all debts 19-24 have been discharged. 19-25 (b) Section 375.264 does not apply to the district. 19-26 SECTION 2. The legislature finds that: 19-27 (1) proper and legal notice of the intention to 20-1 introduce this Act, setting forth the general substance of this 20-2 Act, has been published as provided by law, and the notice and a 20-3 copy of this Act have been furnished to all persons, agencies, 20-4 officials, or entities to which they are required to be furnished 20-5 by the constitution and laws of this state, including the governor, 20-6 who has submitted the notice and Act to the Texas Natural Resource 20-7 Conservation Commission; 20-8 (2) the Texas Natural Resource Conservation Commission 20-9 has filed its recommendations relating to this Act with the 20-10 governor, lieutenant governor, and speaker of the house of 20-11 representatives within the required time; 20-12 (3) the general law relating to consent by political 20-13 subdivisions to the creation of districts with conservation, 20-14 reclamation, and road powers and the inclusion of land in those 20-15 districts has been complied with; and 20-16 (4) all requirements of the constitution and laws of 20-17 this state and the rules and procedures of the legislature with 20-18 respect to the notice, introduction, and passage of this Act have 20-19 been fulfilled and accomplished. 20-20 SECTION 3. Notwithstanding Section 376.___, Local Government 20-21 Code, as added by this Act: 20-22 (1) the initial board of directors of the Energy 20-23 Corridor Management District consists of: 20-24 Pos. No. Name of Board Member 20-25 1. ____________________ 20-26 2. ____________________ 20-27 3. ____________________ 21-1 4. ____________________ 21-2 5. ____________________ 21-3 6. ____________________ 21-4 7. ____________________ 21-5 8. ____________________; and 21-6 9. ____________________ 21-7 (2) of the initial board members, the members 21-8 appointed for positions 1 through 5 serve until June 1, 2005, and 21-9 the members appointed for positions 6 through 9 serve until June 1, 21-10 2003. 21-11 SECTION 4. EFFECTIVE DATE. This Act takes effect immediately 21-12 if it receives a vote of two-thirds of all the members elected to 21-13 each house, as provided by Section 39, Article III, Texas 21-14 Constitution. If this Act does not receive the vote necessary for 21-15 immediate effect, this Act takes effect September 1, 2001.