By Glaze                                              H.B. No. 3647
         77R6963 ATP-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Smith County Economic Development
 1-3     District; providing the 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. Subtitle B, Title 12, Local Government Code, is
 1-6     amended by adding Chapter 385 to read as follows:
 1-7          CHAPTER 385.  SMITH COUNTY ECONOMIC DEVELOPMENT DISTRICT
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 385.001.  CREATION OF DISTRICT; LEGISLATIVE DECLARATION.
1-10     (a)  Notwithstanding any law relating to consent by political
1-11     subdivisions to the creation of conservation and reclamation
1-12     districts and the inclusion of land in those districts, the Smith
1-13     County Economic Development District is created as a special
1-14     district under Section 59, Article XVI, Texas Constitution.
1-15           (b)  The district is a unit of government for purposes of
1-16     Chapter 101, Civil Practice and Remedies Code (Texas Tort Claims
1-17     Act), and operations of the district are considered to be essential
1-18     governmental functions and not proprietary functions for all
1-19     purposes, including the application of the Texas Tort Claims Act.
1-20           (c)  The board by resolution may change the district's name.
1-21           (d)  The creation of the district is essential to the
1-22     accomplishment of the purposes of Section 52, Article III, and
1-23     Section 59, Article XVI, Texas Constitution, and to the
1-24     accomplishment of the public purposes stated in this chapter.
 2-1           (e)  The district is necessary to promote, develop,
 2-2     encourage, and maintain employment, commerce, economic development,
 2-3     and public welfare in the Smith County Economic Development
 2-4     District.  The creation of the district and this chapter are not to
 2-5     be interpreted to relieve Smith County or any other political
 2-6     subdivision from providing the level of services as of the
 2-7     effective date of this chapter, to the area included in the
 2-8     district or to release the county or political subdivision from its
 2-9     obligations to provide services to that area. The district is
2-10     created to supplement and not supplant such services in the area
2-11     included within the district.
2-12           (f)  Except as otherwise provided by this chapter, the
2-13     district is not subject to the jurisdiction or supervision of the
2-14     commission under Chapter 49, Water Code, or other law.
2-15           Sec. 385.002.  DEFINITIONS.  In this chapter:
2-16                 (1)  "Board" means the board of directors of the
2-17     district.
2-18                 (2)  "Commission" means the Texas Natural Resource
2-19     Conservation Commission.
2-20                 (3)  "District" means the Smith County Economic
2-21     Development District.
2-22                 (4)  "Improvement project" means any program or project
2-23     authorized by this chapter, inside or outside the district, that is
2-24     necessary to accomplish the public purposes of the district.
2-25           Sec. 385.003.  BOUNDARIES.  The district includes all of the
2-26     territory contained within the tracts of land described as follows:
2-27                                   Tract I
 3-1                                72.149 acres
 3-2     All that certain tract or parcel of land situated in the A. J.
 3-3     Lagrone Survey, Abstract 571, the David Barclay Survey, Abstract
 3-4     91, and the Isaac Read Survey, Abstract 813, Smith County, Texas,
 3-5     being out of and a part of the remainder of that certain 40.05 acre
 3-6     First Tract and 44.88 acre Second Tract described in a Warranty
 3-7     Deed from Ann Clyde (Clinkscales) McCombs to Betty Ruth Yancy et
 3-8     vir Bobby Joe Yancy, dated May 27, 1992, and recorded in Volume
 3-9     3238, Page 330 of the Land Records of Smith County, Texas, and
3-10     being more particularly described by metes and bounds as follows:
3-11     BEGINNING at a 1/2" iron rod found for the southwest corner of the
3-12     herein described tract, same being the point of intersection of the
3-13     west line of said 44.88 acre tract with the north right-of-way line
3-14     of Interstate Highway 20; a concrete monument found for reference
3-15     bears South 80 26'29" East, 40.46 feet;
3-16     THENCE, North 05 38'10" East, with the west line of said 44.88 acre
3-17     tract, same being the east line of that certain 25.555 acre Tract
3-18     One described in a Warranty Deed in Cancellation of Debt from
3-19     Featherston, Inc. to Black Stone Paving, Inc. and recorded in
3-20     Volume 3684, Page 800 of said Land Records, and generally with a
3-21     barbed wire fence, a distance of 1375.02 feet to a 1/2" iron rod
3-22     set for the northeast corner of said 25.555 acre tract, same being
3-23     the northeast corner of that certain tract described in a Special
3-24     Warranty Deed to Elbert Carroll Hooper et ux Rose Marie Hooper, of
3-25     record in Volume 1336, Page 174 of the Deed Records of Smith
3-26     County, same being in the south right-of-way line of U.S. Highway
3-27     271;
 4-1     THENCE, North 68 19'10" East with said south right-of-way line of
 4-2     U.S. Highway 271, a distance of 54.37 feet to a concrete
 4-3     right-of-way monument found for an angle point in same;
 4-4     THENCE, North 68 23'11" East, continuing with said south
 4-5     right-of-way line of U.S. Highway 271, a distance of 800.26 feet to
 4-6     a concrete right-of-way monument found for an angle point in same;
 4-7     THENCE, North 65 30'49" East, continuing with said south
 4-8     right-of-way line of U.S. Highway 271, a distance of 200.18 feet to
 4-9     a concrete right-of-way monument found for an angle point in same;
4-10     THENCE, North 68 21'49" East, continuing with said south
4-11     right-of-way line of U.S. Highway 271, a distance of 956.63 feet to
4-12     a 1/2" iron pipe found for the northern northeast corner of the
4-13     herein described tract, same being the point of intersection of the
4-14     northern northeast line of said 40.05 acre tract with said south
4-15     right-of-way line; a concrete right-of-way monument found for
4-16     reference bears North 68 21'49" East, 142.48 feet;
4-17     THENCE, South 19 55'00" East, a distance of 217.20 feet to a 1/2"
4-18     iron rod set for the northern interior corner of said 40.05 acre
4-19     tract;
4-20     THENCE North 84 34'00" East, a distance of 117.56 feet to a 2" iron
4-21     rod found for the southern northeast corner of the herein described
4-22     tract, same being the point of intersection of the southern
4-23     northeast line of said 40.05 acre tract with the west right-of-way
4-24     line of FM Highway 757;
4-25     THENCE, South 20 11'34" West, with said west right-of-way line of
4-26     FM Highway 757, a distance of 608.33 feet to a 1/2" iron rod set
4-27     for the point of curvature and the beginning of a curve to the left
 5-1     having a radius of 2,904.79 feet;
 5-2     THENCE, continuing with said West right-of-way line of FM Highway
 5-3     757, and along said curve to the left having a radius of 2,904.79
 5-4     feet, a central angle of 05 49'43", and a chord bearing and
 5-5     distance of South 17 16'43" West, 295.38 feet, an arc length of
 5-6     259.50 feet to a 1/2" iron rod set for the end of said curve and
 5-7     the point of tangency;
 5-8     THENCE, South 14 21'51" West, continuing with said west
 5-9     right-of-way line of FM Highway 757 a distance of 549.28 feet to a
5-10     1/2" iron rod set a corner in the north right-of-way line of said
5-11     Interstate Highway 20;
5-12     THENCE, North 75 52'30" West, with said north right-of-way line of
5-13     Interstate Highway 20 a distance of 10.00 feet to a concrete
5-14     right-of-way monument found for a corner of same;
5-15     THENCE, South 14 31'05 West, continuing with said north
5-16     right-of-way line of Interstate Highway 20, a distance of 457.36
5-17     feet to a concrete right-of-way monument found for a corner of
5-18     same;
5-19     THENCE, North 75 07'02" West, continuing with said north
5-20     right-of-way line of Interstate Highway 20, a distance of 202.01
5-21     feet to a concrete right-of-way monument found for a corner of
5-22     same;
5-23     THENCE, South 62 34'10" West, continuing with said north
5-24     right-of-way line of Interstate Highway 20, a distance of 518.96
5-25     feet to a concrete right-of-way monument found for a corner of
5-26     same;
5-27     THENCE, South 87 33'33" West, continuing with said north
 6-1     right-of-way line of Interstate Highway 20, a distance of 369.53
 6-2     feet to a concrete right-of-way monument found for a corner of
 6-3     same;
 6-4     THENCE, North 80 26'29" West, continuing with said north
 6-5     right-of-way line of Interstate Highway 20, at 576.73 feet pass
 6-6     said concrete right-of-way monument found for reference, and
 6-7     continuing in all a total distance of 617.19 feet to the POINT OF
 6-8     BEGINNING and containing 72.149 acres of land.
 6-9                                  Tract II
6-10                                19.806 acres
6-11     All that certain tract or parcel of land situated in the Asa Wright
6-12     Survey, Abstract 1037, the David Barclay Survey, Abstract 91, and
6-13     the Isaac Read Survey, Abstract 813, Smith County, Texas, being out
6-14     of and a part of the remainder of that certain 25.555 acre Tract
6-15     One described in a Warranty Deed in Cancellation of Debt from
6-16     Featherston, Inc. to Black Stone Paving, Inc., dated June 1, 1995,
6-17     and recorded in Volume 3684, Page 800 of the Land Records of Smith
6-18     County, Texas, and being more particularly described by metes and
6-19     bounds as follows:
6-20     BEGINNING at a 1/2" iron rod found for the southeast corner of said
6-21     25.555 acre tract, same being in the north right-of-way line of
6-22     Interstate Highway 20; a concrete monument found for reference
6-23     bears South 80 26'29" East, 40.46 feet;
6-24     THENCE, North 66 15'00" West, with the south line of said 25.555
6-25     acre tract, same being said north right-of-way line of Interstate
6-26     Highway 20 (and the bearing basis of this survey as related to the
6-27     record bearing), a distance of 1,223.37 feet to a 1/2" iron rod
 7-1     found for the southeast corner of that certain 3.000 acre tract
 7-2     described in a deed to Exstar Development Inc., of record in Volume
 7-3     3989, Page 568 of the Official Public Records of Smith County,
 7-4     Texas, same being the southwest corner of the herein described
 7-5     tract;
 7-6     THENCE, North 28 35'30" East, with the southeast line of said 3000
 7-7     acre tract, a distance of 395.10 feet to a 1/2" iron rod found for
 7-8     a corner of same;
 7-9     THENCE, North 21 30'45" West, a distance of 100.03 feet to a 1/2"
7-10     iron rod found for the northwest corner of the herein described
7-11     tract, same being in the north line of said 25.555 acre tract, same
7-12     being in the south right-of-way line of U.S. Highway 271;
7-13     THENCE, N 68 28'07" East, with the north line of said 25.555 acre
7-14     tract, same being said south right-of-way line of U.S. Highway 271,
7-15     a distance of 924.26 feet to a 1/2" iron rod found for the
7-16     northwest corner of that certain tract described in a Special
7-17     Warranty Deed to Elbert Carroll Hooper et ux Rose Marie Hooper, of
7-18     record in volume 1336, Page 174 of the Deed Records of Smith
7-19     County, Texas, same being the northern Northeast corner of the
7-20     herein described tract;
7-21     Thence South 05 27'10" West, a distance of 504.24 feet to a 1/2"
7-22     iron rod set for the southwest corner of said Hooper tract;
7-23     Thence, South 84 21'50" East, a distance of 230.40 feet to a 1/2"
7-24     iron rod set for the southeast corner of said Hooper tract, same
7-25     being the southern northeast corner of the hererin described tract;
7-26     same being in the east line of said 25.555 acre tract;
7-27     Thence, South 05 38'10" West, with the east line of said 25.555
 8-1     acre tract, a distance of 750.95 feet to the POINT OF BEGINNING and
 8-2     containing 19.806 acres of land.
 8-3                                  Tract III
 8-4                                 3.000 acres
 8-5     All that certain tract or parcel of land situated in the Asa Wright
 8-6     Survey, Abstract 1037, and the Isaac D. Read Survey, Abstract 813,
 8-7     Smith County, Texas, being all of that certain called 2.500 acre
 8-8     Tract One described in a Warranty Deed from Black Stone Paving,
 8-9     Inc., to John Pollard, Jr., dated June 1, 1995, and recorded in
8-10     Volume 3684, Page 809 of the Land Records of Smith County, Texas,
8-11     and being out of and a part of the remainder of that certain 25.555
8-12     acre Tract One described in a Warranty deed in Cancellation of Debt
8-13     from Featherston, Inc. to Black Stone Paving, Inc., dated June 1,
8-14     1995, and recorded in Volume 3684, Page 800 of the Land Records of
8-15     Smith County, Texas, and being more particularly described by metes
8-16     and bounds as follows:
8-17     BEGINNING at a concrete monument found for the southwest corner of
8-18     said 2.500 acre tract, same being the point of intersection of the
8-19     north right-of-way line of Interstate Highway 20 with the southeast
8-20     right-of-way line of U.S. Highway 271;
8-21     THENCE, North 53 35'37" East, with said southeast right-of-way line
8-22     of U.S. Highway 271, a distance of 163.34 feet to a 1/2" iron rod
8-23     set for a corner of said 2.500 acre tract;
8-24     THENCE, North 72 39'34" East, continuing with said southeast
8-25     right-of-way line of U.S. Highway 271, a distance of 200.50 feet to
8-26     a 1/2" iron rod found for a corner of said 2.500 acre tract;
8-27     THENCE, North 68 28'53" East, continuing with said southeast
 9-1     right-of-way line of U.S. Highway 271, a distance of 268.34 feet to
 9-2     a 1/2" iron rod set for the northwest corner of said 2.500 acre
 9-3     tract;
 9-4     THENCE, South 21 30'45" East, a distance of 100.03 feet to a 1/2"
 9-5     iron rod found for the northeast corner of said 2.500 acre tract;
 9-6     Thence 28 35'30" West, a distance of 395.10 feet to a 1/2" iron rod
 9-7     found for the  southeast corner of the herein described tract, same
 9-8     being in the south line of said 25.555 acre tract, same being in
 9-9     said north right-of-way line of Interstate Highway 20;
9-10     Thence 66 15'00" West, with the South line of said 25.555 acre
9-11     tract, same being said North right-of-way line of Interstate
9-12     Highway 20 (and the bearing basis of this survey as related to the
9-13     record bearing), at 109.61 feet pass a 1/2" iron rod found for the
9-14     southeast corner of said 2.500 acre tract, and continuing in all a
9-15     total distance of 458.96 feet to the POINT OF BEGINNING and
9-16     containing 3.000 acres of land.
9-17                                  Tract IV
9-18                                 1.044 acres
9-19     All that certain tract or parcel of land situated in the A. J.
9-20     Lagrone Survey, Abstract 571, Smith County, Texas, being out of and
9-21     a part of that certain called 1.220 acre tract described in a
9-22     Warranty Deed with Vendor's Lien from J. G. Andrews to Herman L.
9-23     Stevenson et ux Dorothy Stevenson, dated December 10, 1968,
9-24     recorded in Volume 1286, Page 357 of the Deed Records of Smith
9-25     County, Texas, and being more particularly described by metes and
9-26     bounds as follows:
9-27     BEGINNING at a 1/2" iron pipe found for the northwest corner of
 10-1    said 1.220 acre tract, same being in the south right-of-way line of
 10-2    U.S. Highway 271;
 10-3    THENCE, North 68 21'49" east, with said south right-of-way line of
 10-4    U.S. Highway 271, a distance of 142.48 feet to a concrete
 10-5    right-of-way monument found for an angle point in same, same being
 10-6    a north corner of said 1.220 acre tract;
 10-7    THENCE, South 76 09'34" East, continuing with said south
 10-8    right-of-way line of U.S. Highway 271, a distance of 136.59 feet to
 10-9    a concrete right-of-way monument found for a corner in the
10-10    northeast line of said 1.220 acre tract, same being in the west
10-11    right-of-way line of F.M. 757;
10-12    THENCE, South 19 10'20" West, with said west right-of-way line of
10-13    F.M. 757, a distance of 225.44 feet to a 2" iron rod found for the
10-14    southeast corner of the herein described tract, same being in the
10-15    southern northeast line of that certain 40.05 acre First Tract
10-16    described in a Warranty Deed from Ann Clyde (Clinkscales) McCombs
10-17    to Betty Ruth Yancy et vir Bobby Joe Yancy, dated May 27, 1992, and
10-18    recorded in Volume 3238, Page 330 of the Land Records of Smith
10-19    County, Texas;
10-20    THENCE, South 84 34'00" West, with said southern northeast line of
10-21    said 40.05 acre tract, a distance of 117.56 feet to a 1/2" iron rod
10-22    set for the northern interior corner of same;
10-23    THENCE, North 19 55'00" West, with the northern northeast line of
10-24    said 40.05 acre tract, a distance of 217.20 feet to the POINT OF
10-25    BEGINNING and containing 1.044 acres of land.
10-26                                  Tract V
10-27                               10.394 acres
 11-1    All of that certain parcel or tract of land located in the David
 11-2    Barclay Survey, Abstract No. 91 and the Aston Shafner Survey,
 11-3    Abstract No. 868, Smith County, Texas, and being part of that
 11-4    certain 26.9 acre tract conveyed to James T. Kyles by Gerald W.
 11-5    Kyles on October 13, 1964, and recorded in Volume 1133, Page 19 of
 11-6    the Deed Records of Smith County, Texas, and being more completely
 11-7    described as follows, to-wit:
 11-8    BEGINNING at a 1/2" iron rod for corner, being at the intersection
 11-9    of the East line of the above mentioned 26.9 acre tract and the
11-10    North right-of-way line of Interstate Highway 20;
11-11    THENCE in a Northwesterly direction, with the North right-of-way
11-12    line of the said Interstate Highway 20, as follows:  North 87  29'
11-13    West 93.87 feet to a right-of-way monument; North 64  11' West
11-14    380.79 feet to a right-of-way monument; North 40  30' West 368.61
11-15    feet to a right-of-way monument; and North 73  44' West at 57.49
11-16    feet to a right-of-way monument;
11-17    THENCE North 14  39' East, a distance of 375.74 feet to a 1/2" iron
11-18    rod for corner, being at the intersection of the East right-of-way
11-19    line of FM Highway 757 and the South right-of-way line of FM
11-20    Highway No. 1252;
11-21    THENCE in an Easterly Direction, with the South right-of-way line
11-22    of FM Highway No. 1252 as follows:  South 75  44' East 50.51 feet;
11-23    South 81  18' East 138.22 feet;  South 88  34' East 120.49 feet;
11-24    North 84  12' East 118.61 feet; North 76  26' East 121.38 feet; and
11-25    North 71  37' East 107.38 feet to a 1" iron rod for corner, being
11-26    in the East line of the above mentioned 26.9 acre tract;
11-27    THENCE South 00  31' West, with the East line of the 26.9 acre
 12-1    tract, a distance of 867.87 feet to the place of beginning,
 12-2    containing 10.394 acres of land.
 12-3                                 Tract VI
 12-4                                3.226 acres
 12-5    All of that certain parcel or tract of land located in the David
 12-6    Barclay Survey, Abstract No. 91 and the Aston Shafner Survey,
 12-7    Abstract No. 868, Smith County, Texas, and being part of that
 12-8    certain 26.9 acre tract conveyed to James T. Kyles by Gerald W.
 12-9    Kyles on October 13, 1964, and recorded in Volume 1133, Page 19 of
12-10    the Deed Records of Smith County, Texas, and being more completely
12-11    described as follows, to-wit:
12-12    BEGINNING at a 1/2" iron rod for corner, being at the intersection
12-13    of the East  line of the above mentioned 26.9 acre tract and the
12-14    South right-of-way line of Interstate Highway 20;
12-15    THENCE South 00  31' West, with the East line of the 26.9 acre
12-16    tract, a distance of 358.82 feet to a strap iron for corner, being
12-17    the southeast corner of the 26.9 acre tract;
12-18    Thence North 89 30' West, with the South line of the 26.9 acre
12-19    tract, a distance of 314.60 feet to a 1/2" iron rod for corner,
12-20    being in the center of a creek, also being the Southerly Southwest
12-21    corner of the 26.9 acre tract;
12-22    THENCE North 30  37' West, with the center of said creek, a
12-23    distance of 252.78 feet to a point for corner in the center of said
12-24    creek;
12-25    THENCE North 45  51' West, a distance of 52.88 feet to a 1/2" iron
12-26    rod for corner; said corner being in the South right-of-way line of
12-27    Interstate Highway 20;
 13-1    THENCE North 63  42' East, with the South line of said Interstate
 13-2    Highway 20, a distance of 254.85 feet to a right of way monument;
 13-3    THENCE South 87  29' East, continuing with the South right-of-way
 13-4    line of said Interstate Highway 20, a distance of 256.27 feet to
 13-5    the place of beginning, containing 3.226 acres of land.
 13-6                                 Tract VII
 13-7                                2.996 acres
 13-8    All that certain tract or parcel of land situated in the Isaac D.
 13-9    Read Survey, Abstract 813, and the David Barclay Survey, Abstract
13-10    91, Smith County, Texas, being all of that certain tract described
13-11    in a Special Warranty Deed to Elbert Carroll Hooper et ux Rose
13-12    Marie Hooper, of record in Volume 1336, Page 174 of the Deed
13-13    Records of Smith County, Texas, and being more particularly
13-14    described by metes and bounds as follows:
13-15    BEGINNING at a 1/2" iron rod found for the northwest corner of said
13-16    Hooper tract, same being in the South right-of-way line of U.S.
13-17    Highway 271;
13-18    THENCE, North 68 19'10" East, with said South right-of-way line of
13-19    U.S. Highway 271, a distance of 261.13 feet to a 1/2" iron rod set
13-20    for the northeast corner of said Hooper tract;
13-21    THENCE, South 05 38'10" West, a distance of 624.07 feet to a 1/2"
13-22    iron rod set for the southeast corner of said Hooper tract;
13-23    THENCE, North 84 21'50" West, a distance of 230.40 feet to a 1/2"
13-24    iron rod set for the southwest corner of said Hooper tract;
13-25    THENCE, North 05 27'10" East, with the West line of said Hooper
13-26    tract, a distance of 504.24 feet to the POINT OF BEGINNING and
13-27    containing 2.996 acres of land.
 14-1                                Tract VIII
 14-2                               16.130 acres
 14-3    All that certain tract or parcel of land, being 16.130 acres
 14-4    situated in the Acton Shofner Survey, Abstract No. 868, Smith
 14-5    County, Texas, being part of that certain called 26.93 acre tract
 14-6    described in a Quitclaim Deed from James O. Kay to Buryl C. Kay,
 14-7    dated July 24, 1996, recorded in Volume 3840, Page 474 of the Land
 14-8    Records of Smith County, Texas, said 16.130 acres being more
 14-9    completely described as follows, to-wit:
14-10    Bearings are based on the monumented East line of tracts one and
14-11    two described in a deed to Jay T. Gordon et al, recorded in Volume
14-12    4723, Page 277.
14-13    BEGINNING at the Northwest corner of the above mentioned Buryl C.
14-14    Kay tract, being near the center of the paved surface of FM Highway
14-15    1252 (also known as the Tyler-Thunderstruck Road), a 1" iron rod
14-16    (found for a reference) bears South 00 31'00" West, 42.06 feet,
14-17    said 1" iron rod being the Northeast corner of the Jay T. Gordon et
14-18    al Tract One (called 10.394 acres) recorded in Volume 4723, Page
14-19    277;
14-20    THENCE North 71 11'57" East, generally along the center of the
14-21    paved surface of said FM Highway 1252 and with the North line of
14-22    said Kay tract, a distance of 720.51 feet to the Northeast corner
14-23    of same, a Sucker rod (found for reference) bears South 00 55'54"
14-24    West, 42.74 feet, said Sucker rod being the Northwest corner of the
14-25    CBLS Family Trust called 1.952 acre tract recorded in Volume 3985,
14-26    Page 161;
14-27    THENCE South 00 55'54" West, with the East line of said Kay tract,
 15-1    with the West line of said CBLS Family Trust Tract, with the West
 15-2    Line of the Randall L. McIntyre, et ux, called 16.1013 acre tract
 15-3    recorded in Volume 3500, Page 531 and with the West line of the
 15-4    American Fidelity Savings Association called 0.786 of an acre
 15-5    recorded in Volume 2893, Page 433, a total distance of 1171.51 feet
 15-6    to a 1" iron pipe (found) for the Southwest corner of said 0.786 of
 15-7    an acre tract, being in the North line of Interstate Highway 20;
 15-8    THENCE North 87 28'34" West with the North line of said Interstate
 15-9    Highway 20, a distance of 671.86 feet to a 1/2" iron rod (found) in
15-10    the West line of the above mentioned Buryl C. Kay tract, being the
15-11    Southeast corner of the above mentioned Jay T. Gordon et al Tract
15-12    One;
15-13    THENCE North 00 31'00" East, with the West line of the Kay tract,
15-14    same being the East line of said Jay T. Gordon, et al, tract, a
15-15    distance of 909.60 feet to THE PLACE OF BEGINNING, containing
15-16    16.130 acres of land, of which, 0.88 of an acre is within the
15-17    right-of-way of the above mentioned FM Highway 1252.
15-18          Sec. 385.004.  FINDINGS RELATED TO BOUNDARIES.  The
15-19    legislature finds that the boundaries and field notes of the
15-20    district form a closure. A mistake in the field notes or in copying
15-21    the field notes in the legislative process does not affect the
15-22    organization, existence, or validity of the district, the right of
15-23    the district to enter into any type of contract for the purposes
15-24    for which the district is created, the right of the district to
15-25    impose, assess, or collect taxes, fees, or charges, or the
15-26    operation of the district or its governing body.
15-27          Sec. 385.005.  FINDING OF BENEFIT AND PUBLIC PURPOSE.  (a)
 16-1    All of the land and other property included within the boundaries
 16-2    of the district will be benefited by the works, projects,
 16-3    improvements, and services that are to be accomplished by the
 16-4    district under powers conferred by Section 52, Article III, and
 16-5    Section 59, Article XVI, Texas Constitution, and other powers
 16-6    granted under this chapter.  The district is created to serve a
 16-7    public use and benefit.
 16-8          (b)  The creation of the district:
 16-9                (1)  is essential to further the public purposes of the
16-10    economic development and diversification of the state, the
16-11    elimination of unemployment and underemployment, and the
16-12    stimulation and development of transportation and commerce;
16-13                (2)  is in the public interest; and
16-14                (3)  will promote the health, safety, and general
16-15    welfare of residents, employers, employees, and consumers in the
16-16    district and of the general public.
16-17          (c)  The district will provide needed funding for the
16-18    district area to preserve, maintain, and enhance the economic
16-19    health and vitality of the area as a community and business and
16-20    commerce center. The district will further promote the health,
16-21    safety, welfare, education, convenience, and enjoyment of the
16-22    public by improving, landscaping, and developing certain areas
16-23    within and adjacent to the district and providing public services
16-24    and facilities within and adjacent to the district that are
16-25    necessary for the restoration, preservation, enhancement, and
16-26    enjoyment of scenic and aesthetic beauty. The improvement projects
16-27    authorized by this Act are essential to carrying out a public
 17-1    purpose. The district will not act as the agent or instrumentality
 17-2    of any private interests, even though private interests and the
 17-3    general public will benefit from the district.
 17-4          Sec. 385.006.  CONSTRUCTION OF CHAPTER.  This chapter shall
 17-5    be liberally construed in conformity with the findings and purposes
 17-6    stated in this chapter.
 17-7             (Sections 385.007-385.030 reserved for expansion
 17-8                      SUBCHAPTER B. POWERS AND DUTIES
 17-9          Sec. 385.031.  GENERAL POWERS AND DUTIES.  (a)  The district
17-10    has all of the powers and duties provided by the general law of
17-11    this state, including:
17-12                (1)  Subchapter E, Chapter 375;
17-13                (2)  the general laws of this state on conservation and
17-14    reclamation districts created under Section 59, Article XVI, Texas
17-15    Constitution, including Chapters 49 and 54, Water Code; and
17-16                (3)  the general laws of this state on road districts
17-17    and road utility districts created under Section 52(b)(3), Article
17-18    III, Texas Constitution, including Chapter 441, Transportation
17-19    Code.
17-20          (b)  If any provision of the general law is in conflict or
17-21    inconsistent with this chapter, this chapter prevails. Any general
17-22    law that supplements the power and authority of the district, to
17-23    the extent not in conflict or inconsistent with this chapter, is
17-24    adopted and incorporated by reference.
17-25          Sec. 385.032.  IMPROVEMENT PROJECTS.  The district may
17-26    conduct or authorize the following types of improvement projects or
17-27    activities in support of or incidental to improvement projects:
 18-1                (1)  the planning, design, construction, improvement,
 18-2    and maintenance of:
 18-3                      (A)  landscaping;
 18-4                      (B)  highway right-of-way or transit corridor
 18-5    beautification and improvements;
 18-6                      (C)  lighting, banners, and signs;
 18-7                      (D)  streets or sidewalks;
 18-8                      (E)  hiking and cycling paths and trails,
 18-9    pedestrian walkways, skywalks, crosswalks, or tunnels;
18-10                      (F)  parks, lakes, gardens, recreational
18-11    facilities, open space, scenic areas, and related exhibits and
18-12    preserves;
18-13                      (G)  fountains, plazas, and pedestrian malls; and
18-14                      (H)  drainage or storm water detention
18-15    improvements;
18-16                (2)  the planning, design, construction, improvement,
18-17    maintenance, and operation of:
18-18                      (A)  solid waste, water, sewer, or power
18-19    facilities or services, including electrical, gas, steam, and
18-20    chilled water facilities; or
18-21                      (B)  off-street parking facilities, bus
18-22    terminals, and heliports;
18-23                (3)  the planning and acquisition of:
18-24                      (A)  public art and sculpture and related
18-25    exhibits and facilities; and
18-26                      (B)  educational and cultural exhibits and
18-27    facilities;
 19-1                (4)  the planning, design, construction, acquisition,
 19-2    lease, rental, improvement, maintenance, installation, and
 19-3    management of and provision of furnishings for facilities for:
 19-4                      (A)  conferences, conventions, or exhibitions;
 19-5                      (B)  manufacturer, consumer, or trade shows;
 19-6                      (C)  civic, community, or institutional events;
 19-7    and
 19-8                      (D)  exhibits, displays, attractions, special
 19-9    events, and seasonal or cultural celebrations and holidays;
19-10                (5)  the removal, razing, demolition, or clearing of
19-11    land or improvements in connection with any improvement project;
19-12                (6)  the acquisition and improvement of land and other
19-13    property for the mitigation of the environmental effects of any
19-14    improvement project;
19-15                (7)  the acquisition of real or personal property or an
19-16    interest in real or personal property in connection with an
19-17    authorized improvement project;
19-18                (8)  any special or supplemental services for the
19-19    improvement and promotion of the district or the areas adjacent to
19-20    the district or for the protection of public health and safety
19-21    within or adjacent to the district, including advertising,
19-22    promotion, tourism, health and sanitation, public safety, security,
19-23    fire protection or emergency medical services, business
19-24    recruitment, development, elimination of traffic congestion, and
19-25    recreational, educational, or cultural improvements, enhancements,
19-26    and services; and
19-27                (9)  any similar public improvements, facilities, or
 20-1    services.
 20-2          Sec. 385.033.  POWERS RELATED GENERALLY TO FINANCIAL AND
 20-3    TERRITORIAL MATTERS.  The district may:
 20-4                (1)  impose, assess, and apply the proceeds from a
 20-5    limited sales and use tax as authorized by Section 385.111 for
 20-6    authorized purposes;
 20-7                (2)  borrow money for district purposes;
 20-8                (3)  add or exclude territory in the manner provided by
 20-9    Subchapter J, Chapter 49, Water Code, as limited by Section 54.016,
20-10    Water Code, except that:
20-11                      (A)  for purposes of this subdivision, a
20-12    reference in Subchapter J, Chapter 49, Water Code, or Section
20-13    54.016, Water Code, to a tax means an ad valorem tax; and
20-14                      (B)  Section 54.016, Water Code, and Section
20-15    42.042, Local Government Code, do not apply to the district's
20-16    annexation of land restricted primarily to commercial or business
20-17    use;
20-18                (4)  enter into a contract with any person for the
20-19    accomplishment of any district purpose, including a contract for:
20-20                      (A)  the payment, repayment, or reimbursement of
20-21    any costs incurred by that person for or on behalf of the district,
20-22    including all or part of the costs of any improvement project and
20-23    interest on the reimbursed cost; or
20-24                      (B)  the use, occupancy, lease, rental,
20-25    operation, maintenance, or management of all or part of a proposed
20-26    or existing improvement project;
20-27                (5)  apply for and contract with any person to receive,
 21-1    administer, and perform any duty or obligation of the district
 21-2    under any federal, state, local, or private gift, grant, loan,
 21-3    conveyance, transfer, bequest, donation, or other financial
 21-4    assistance arrangement relating to the investigation, planning,
 21-5    analysis, study, design, acquisition, construction, improvement,
 21-6    completion, implementation, or operation by the district or others
 21-7    of a proposed or existing improvement project;
 21-8                (6)  establish, revise, repeal, enforce, collect, and
 21-9    apply the proceeds from user fees or charges for the enjoyment,
21-10    sale, rental, or other use of the district's facilities, services,
21-11    properties, or improvement projects;
21-12                (7)  provide or secure the payment or repayment of the
21-13    costs and expenses of the establishment, administration, and
21-14    operation of the district and the district's costs or share of the
21-15    costs of any improvement project or district contractual obligation
21-16    or indebtedness by or through a lease, installment purchase
21-17    contract, or other agreement with any person, or the levy and
21-18    assessment of taxes, user fees, concessions, rentals, or other
21-19    revenues or resources of the district;
21-20                (8)  undertake separately or jointly with other persons
21-21    all or part of the cost of an improvement project, including an
21-22    improvement project:
21-23                      (A)  for improving, enhancing, and supporting
21-24    public safety and security, fire protection and emergency medical
21-25    services, and law enforcement within and adjacent to the district;
21-26    or
21-27                      (B)  that confers a general benefit on the entire
 22-1    district or a special benefit on a definable part of the district;
 22-2    and
 22-3                (9)  impose, collect, and apply the proceeds from a
 22-4    hotel occupancy tax as provided by Sections 385.112 and 385.113.
 22-5          Sec. 385.034.  RULES AND REGULATIONS.  The district may
 22-6    adopt, amend, and enforce by ordinary civil remedies reasonable
 22-7    rules and regulations:
 22-8                (1)  for the administration and operation of the
 22-9    district;
22-10                (2)  for the use, enjoyment, availability, protection,
22-11    security, and maintenance of the district's properties and
22-12    facilities; and
22-13                (3)  to provide for public safety and security within
22-14    the district.
22-15          Sec. 385.035.  SECURITY SERVICES.  The district may not
22-16    employ peace officers but may contract for off-duty peace officers
22-17    to provide public safety and security services as the board
22-18    determines necessary.
22-19          Sec. 385.036.  ECONOMIC DEVELOPMENT.  The district may
22-20    exercise the economic development powers and authority that Chapter
22-21    380 provides to a municipality with a population of more than
22-22    100,000, and Chapter 1509, Government Code, provides to a
22-23    municipality.
22-24          Sec. 385.037.  ROADWAYS, PARKS, OTHER PUBLIC AREAS.  (a)  The
22-25    board by rule may regulate the private use of public roadways, open
22-26    spaces, parks, sidewalks, and similar public areas within the
22-27    district. To the extent the rules of the district conflict with a
 23-1    rule, order, ordinance, or regulation of a county or municipality
 23-2    with jurisdiction in the district's territory, the rule, order,
 23-3    ordinance, or regulation of the county or municipality controls.
 23-4    The rules may provide for the safe and orderly use of public
 23-5    roadways, open spaces, parks, sidewalks, and similar public areas
 23-6    or facilities.
 23-7          (b)  The board may require a permit for a parade,
 23-8    demonstration, celebration, entertainment event, or a similar
 23-9    nongovernmental activity in or on the public roadways, open spaces,
23-10    parks, sidewalks, and similar public areas or facilities. The board
23-11    may charge a fee for the permit application and for public safety
23-12    or security services in an amount the board considers necessary.
23-13          (c)  The board may require a permit or franchise agreement
23-14    with a vendor, concessionaire, exhibitor, or similar private or
23-15    commercial person or organization for the limited use of the area
23-16    or facilities on terms and conditions and on payment of a permit or
23-17    franchise fee the board may impose.
23-18          Sec. 385.038.  TERMS OF EMPLOYMENT; COMPENSATION.  The board
23-19    may employ and establish the terms of employment and compensation
23-20    of a president, vice president, executive director, general
23-21    manager, and any other operating officer of the district the board
23-22    considers necessary.
23-23          Sec. 385.039.  PROHIBITION ON EMINENT DOMAIN.  The district
23-24    may not exercise the power of eminent domain.
23-25          Sec. 385.040.  PROHIBITION ON IMPACT FEES AND ASSESSMENTS ON
23-26    CERTAIN RESIDENTIAL PROPERTY.  Because the district is created in
23-27    an area that is devoted primarily to commercial and business
 24-1    activity, the district may not impose an impact fee or assessment
 24-2    on a single family residential property or a residential duplex,
 24-3    triplex, quadriplex, or condominium.
 24-4             (Sections 385.041-385.070 reserved for expansion
 24-5                     SUBCHAPTER C.  BOARD OF DIRECTORS
 24-6          Sec. 385.071.  BOARD OF DIRECTORS.  Except as provided by
 24-7    this subchapter, the district is governed by a board of five
 24-8    directors elected by the voters of the district at large.  Except
 24-9    as provided by Sections 385.073(b) and 385.074, directors serve
24-10    staggered terms of four years and until their successors have been
24-11    elected and have qualified.
24-12          Sec. 385.072.  QUALIFICATIONS.  To be qualified to serve as
24-13    an elected director, a person must be at least 18 years of age and
24-14    be:
24-15                (1)  a resident of the district;
24-16                (2)  an owner of real property in the district;
24-17                (3)  an owner of at least 10 percent of the outstanding
24-18    interest of a corporation or general or limited partnership that
24-19    owns real property in the district; or
24-20                (4)  an agent, employee, officer, or director of any
24-21    corporation or partnership that owns real property in the district.
24-22          Sec. 385.073.  INITIAL BOARD.  (a)  On the effective date of
24-23    this Act, the initial board of directors is composed of the
24-24    following persons:
24-25                (1)  Position One: Nanci Wright;
24-26                (2)  Position Two: Gene Slater; and
24-27                (3)  Position Three: Rohn Boone.
 25-1          (b)  The initial directors appointed to serve in Positions
 25-2    One and Two shall serve until the first Saturday in May 2002, or
 25-3    until their successors have been elected and been duly qualified.
 25-4    The initial director appointed to serve in Position Three shall
 25-5    serve until the first Saturday in May 2004, or until the successor
 25-6    has been elected and been duly qualified.
 25-7          Sec. 385.074.  ELECTED BOARD.  The board shall call and hold
 25-8    an election on the first Saturday in May 2002 for the election of
 25-9    directors to fill Positions One, Two, Four, and Five.  Before the
25-10    election, the board shall determine which director, of the
25-11    directors serving in Positions Four and Five, shall serve a term
25-12    expiring in May 2004. The board shall call and hold an election on
25-13    the first Saturday in May 2004 to elect a director to Position
25-14    Three and elect a director to Position Four or Five, as determined
25-15    by the board.
25-16          Sec. 385.075.  VACANCY.  A vacancy in the office of director
25-17    shall be filled by appointment of a qualified individual by a
25-18    majority vote of the remaining directors. The board may remove a
25-19    director for misconduct or failure to carry out the director's
25-20    duties by unanimous vote of all of the remaining directors.
25-21          Sec. 385.076.  DIRECTOR'S BOND.  As soon as practicable after
25-22    a director is elected or appointed, the elected director shall
25-23    execute a bond for $10,000 payable to the district and conditioned
25-24    on the faithful performance of the director's duties.  All of the
25-25    directors' bonds must be approved by the board.  Each director
25-26    shall take the oath of office prescribed by the constitution for
25-27    public office. The bond and oath shall be filed with the district
 26-1    and the district shall retain the bond and oath in its records.
 26-2          Sec. 385.077.  OFFICERS; COMPENSATION; QUORUM.  (a)  The
 26-3    directors shall elect a chair, a vice chair, a secretary, and any
 26-4    other officers as the board considers necessary.
 26-5          (b)  A position on the board may not be construed to be a
 26-6    civil office of emolument for any purpose, including those purposes
 26-7    described in Section 40, Article XVI, Texas Constitution.
 26-8          (c)  A director is not entitled to compensation for service
 26-9    on the board but is entitled to be reimbursed for necessary
26-10    expenses incurred in carrying out the duties and responsibilities
26-11    of a director.
26-12          (d)  Three directors constitute a quorum for the
26-13    consideration of matters pertaining to the district, and a
26-14    concurrence of a majority of a quorum of directors shall be
26-15    required for any official action of the district.
26-16          Sec. 385.078.  COMMON LAW PRINCIPLES.  A person who qualifies
26-17    to serve on the board is qualified to serve as a director and
26-18    participate in all votes pertaining to the business of the district
26-19    regardless of any common-law doctrine or statute regarding
26-20    conflict-of-interest, incompatibility, or similar matter to the
26-21    contrary.
26-22          Sec. 385.079.  CONFIRMATION AND DIRECTORS ELECTION.  (a)  As
26-23    soon as practicable after all initial directors have qualified for
26-24    office, the initial directors shall hold an organizational meeting
26-25    and call a confirmation election to be held on the next available
26-26    uniform election date occurring not less than 45 days after the
26-27    date of the organizational meeting.
 27-1          (b)  The confirmation election shall be called and held to
 27-2    confirm the establishment of the district in the manner provided by
 27-3    Subchapter D, Chapter 49, Water Code.  In the event a majority of
 27-4    the votes cast at a confirmation election is against the creation
 27-5    of the district, the board may not call another confirmation
 27-6    election for six months after the date the former confirmation
 27-7    election is held.  Before a successful confirmation election, the
 27-8    district:
 27-9                (1)  may not borrow money or impose or assess a tax;
27-10    and
27-11                (2)  may carry on any business as the board may
27-12    determine except as provided by Subdivision (1).
27-13          (c)  An election to authorize or to discontinue the
27-14    imposition and assessment of taxes may be held in conjunction with
27-15    a confirmation or director election.
27-16          (d)  The district shall hold an election for directors on the
27-17    first Saturday in May in each even-numbered year in the manner
27-18    provided by Subchapter D, Chapter 49, Water Code.
27-19          Sec. 385.080.  OPEN RECORDS AND MEETINGS.  Chapters 551 and
27-20    552, Government Code, apply to the district.
27-21             (Sections 385.081-385.110 reserved for expansion
27-22                  SUBCHAPTER D.  TAXES; BONDS; CONTRACTS
27-23          Sec. 385.111.  LIMITED SALES AND USE TAX.  (a)  Words and
27-24    phrases used in this section that are defined by Chapters 151 and
27-25    321, Tax Code, have the meanings assigned by Chapters 151 and 321,
27-26    Tax Code.
27-27          (b)  Except as otherwise provided in this section, Subtitles
 28-1    A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to the
 28-2    taxes and to the administration and enforcement of the taxes
 28-3    imposed by the district in the same manner that those laws apply to
 28-4    state taxes.
 28-5          (c)  The district may adopt, reduce, or repeal the limited
 28-6    sales and use tax authorized by this section at an election in
 28-7    which a majority of the qualified voters of the district voting in
 28-8    the election approve the adoption or the abolition of the tax, as
 28-9    applicable.
28-10          (d)  The provisions of Subchapters C, D, E, and F, Chapter
28-11    323, Tax Code, relating to county sales and use taxes shall apply
28-12    to the application, collection, and administration of a sales and
28-13    use tax imposed under this section to the extent consistent with
28-14    this chapter, as if references in Chapter 323, Tax Code, to a
28-15    county referred to the district and references to a commissioners
28-16    court referred to the board.  Sections 323.401-323.404 and 323.505,
28-17    Tax Code, do not apply to a tax imposed under this section.
28-18          (e)  A tax imposed under this section or the repeal or
28-19    reduction of a tax under this section takes effect on the first day
28-20    of the calendar quarter occurring after the date on which the
28-21    comptroller receives the copy of the resolution as required by
28-22    Section 323.405(b), Tax Code.
28-23          (f)  On adoption of the tax authorized by this section, there
28-24    is imposed a tax of two percent, or the maximum rate at which the
28-25    combined tax rate of all local sales and use taxes in any location
28-26    in the district does not exceed two percent, on the receipts from
28-27    the sale at retail of taxable items within the district, and an
 29-1    excise tax on the use, storage, or other consumption within the
 29-2    district of taxable items purchased, leased, or rented from a
 29-3    retailer within the district during the period that the tax is in
 29-4    effect. The rate of the excise tax is the same as the rate of the
 29-5    sales tax portion of the tax and is applied to the sales price of
 29-6    the taxable item.  With respect to a taxable service, "use" means
 29-7    the derivation in the district of direct or indirect benefit from
 29-8    the service.
 29-9          (g)  An election to authorize, reduce, or repeal a limited
29-10    sales and use tax may be called by order of the board and must be
29-11    held on the next available uniform election date established by
29-12    Section 41.001, Election Code, that occurs 45 or more days after
29-13    the date on which the order calling the election was passed. Notice
29-14    of the election shall be given and the election shall be held and
29-15    conducted in the manner prescribed by Chapter 54, Water Code, for
29-16    bond elections for municipal utility districts. The ballots shall
29-17    be printed to provide for voting for or against the appropriate
29-18    proposition:
29-19                (1)  "Adoption of a ___ percent district sales and use
29-20    tax within the district;"
29-21                (2)  "Reduction of the district sales and use tax
29-22    within the district from ___ percent to ___ percent;" or
29-23                (3)  "Abolition of the district sales and use tax
29-24    within the district."
29-25          (h)  If all or part of the territory of the district is
29-26    annexed by a municipality that has adopted and is imposing a sales
29-27    and use tax, the sales and use tax imposed by the district in the
 30-1    annexed territory shall be reduced, if required, in even multiples
 30-2    of one-eighth percent, and without the necessity for an election,
 30-3    so that the combined rate of all sales and use taxes imposed by the
 30-4    county, the annexing municipality, and all other political
 30-5    subdivisions within the annexed territory of the district will not
 30-6    exceed two percent, provided that a sales and use tax previously
 30-7    adopted by the district for the annexed territory shall not be
 30-8    reduced to less than one-half percent, and provided further that no
 30-9    reduction of the district's sales and use tax in the portions of
30-10    the district not so annexed shall be required.
30-11          (i)  A tax imposed under this section or the reduction or
30-12    repeal of a tax under this section takes effect on the first day of
30-13    the calendar quarter occurring after the date on which the
30-14    comptroller receives the notice required by Section 323.405(b), Tax
30-15    Code.
30-16          (j)  Not later than the 10th day after the date of the
30-17    annexation or exclusion of territory by the district or the
30-18    annexation of all or part of the territory of the district by a
30-19    municipality requiring a reduction of the district's sales and use
30-20    tax as provided by Subsection (h), the board shall send to the
30-21    comptroller, by certified or registered mail, certified copies of
30-22    all resolutions, orders, or ordinances pertaining to the annexation
30-23    or exclusion of the territory by a district or municipality.
30-24          (k)  The district may examine and receive information related
30-25    to the imposition, assessment, and collection of sales and use
30-26    taxes to the same extent as if the district were a municipality.
30-27          Sec. 385.112.  HOTEL OCCUPANCY TAX.  (a)  In this section,
 31-1    "hotel" has the meaning assigned by Section 156.001, Tax Code.
 31-2          (b)  The board by order may impose, repeal, or increase or
 31-3    decrease the rate of a tax on a person who, under a lease,
 31-4    concession, permit, right of access, license, contract, or
 31-5    agreement, pays for the use or possession or for the right to use
 31-6    or possess a room that is in a hotel located in the boundaries of
 31-7    the district, costs $2 or more each day, and is ordinarily used for
 31-8    sleeping. The amount of the tax may not exceed seven percent of the
 31-9    price paid for a room in a hotel.
31-10          (c)  Subchapter A, Chapter 352, Tax Code, governs a hotel
31-11    occupancy tax authorized under this section, including the
31-12    collection of the tax, except as inconsistent with this section and
31-13    Section 385.113, subject to the limitations prescribed by Sections
31-14    352.002(b) and (c), Tax Code.
31-15          (d)  The district may examine and receive information related
31-16    to the imposition, assessment, and collection of hotel occupancy
31-17    taxes to the same extent as if the district were a municipality.
31-18          (e)  For purposes of this section, a reference in Subchapter
31-19    A, Chapter 352, Tax Code, to a county is a reference to the
31-20    district and a reference in Subchapter A, Chapter 352, Tax Code, to
31-21    the county's officers or governing body is a reference to the
31-22    board.
31-23          Sec. 385.113.  USE OF HOTEL OCCUPANCY TAX.  (a)  The district
31-24    shall apply the proceeds from a hotel occupancy tax imposed under
31-25    Section 385.112 for any of the district's purposes and for the
31-26    purposes described by Section 352.1015, Tax Code, to the extent
31-27    considered appropriate by the board.
 32-1          (b)  During each interval of three calendar years following
 32-2    the date on which a hotel occupancy tax imposed under Section
 32-3    385.112 is initially collected, the board may not apply an annual
 32-4    average of more than 10 percent of the amount of tax collected
 32-5    under that section, excluding any interest earnings or investment
 32-6    profits and after a deduction for the costs of imposing and
 32-7    collecting the taxes, for the administrative expenses of the
 32-8    district or a district purpose other than:
 32-9                (1)  the costs of advertising and promoting tourism; or
32-10                (2)  the costs of business development and commerce,
32-11    including the costs of planning, designing, constructing,
32-12    acquiring, leasing, financing, owning, operating, maintaining,
32-13    managing, improving, repairing, rehabilitating, or reconstructing
32-14    improvement projects for conferences, conventions, and exhibitions,
32-15    manufacturer, consumer, or trade shows, and civic, community, or
32-16    institutional events.
32-17          (c)  For purposes of this section, a reference in Subchapter
32-18    B, Chapter 352, Tax Code, to a county is a reference to the
32-19    district and a reference in Subchapter B, Chapter 352, Tax Code, to
32-20    the county's officers or governing body is a reference to the
32-21    board.
32-22          Sec. 385.114.  BONDS.  (a)  The district may issue bonds in
32-23    the manner provided by Subchapter J, Chapter 375.  Sections 375.207
32-24    and 375.208 do not apply to bonds issued under this section.
32-25          (b)  If the district issues bonds for the primary purpose of
32-26    providing water, sewage, or drainage facilities, the district must
32-27    obtain the commission's approval in the manner provided by Section
 33-1    49.181, Water Code.
 33-2          (c)  In addition to the sources of money described by
 33-3    Subchapter J, Chapter 375, the bonds of the district may be secured
 33-4    and made payable, wholly or partly, by a pledge of any part of the
 33-5    net proceeds the district receives from the sales and use tax
 33-6    authorized by Section 385.111 and the hotel occupancy tax
 33-7    authorized by Section 385.112.
 33-8          Sec. 385.115.  CONTRACTS WITH DISTRICT.  (a)  A contract the
 33-9    district enters into to carry out a purpose of this chapter may be
33-10    on any terms and for any period of time as the board may determine.
33-11          (b)  Notwithstanding any other law or charter provision, a
33-12    state agency, municipality, county, other political subdivision,
33-13    corporation, individual, or other entity may contract with the
33-14    district to carry out the purposes of this chapter without any
33-15    further authorization.
33-16             (Sections 385.116-385.130 reserved for expansion
33-17                        SUBCHAPTER E.  DISSOLUTION
33-18          Sec. 385.131.  DISSOLUTION.  The board by majority vote may
33-19    dissolve the district at any time.  The board shall dissolve the
33-20    district on written petition of the owners of 75 percent of the
33-21    acreage of real property in the district.
33-22          Sec. 385.132.  INDEBTEDNESS AND CONTRACTUAL OBLIGATIONS.  The
33-23    board may not dissolve the district until the district's
33-24    outstanding indebtedness or contractual obligations have been
33-25    repaid or discharged.
33-26          Sec. 385.133.  TRANSFER OF PROPERTY AND ASSETS.  After the
33-27    board elects to dissolve the district, the board shall transfer
 34-1    ownership of all property and assets of the district to Smith
 34-2    County.
 34-3          SECTION 2.  The legislature finds that the proper and legal
 34-4    notice of the intention to introduce this Act, setting forth the
 34-5    general substance of this Act, has been published as provided by
 34-6    law, and the notice and a copy of this Act have been furnished to
 34-7    all persons, agencies, officials, or entities to which they are
 34-8    required to be furnished by the constitution and laws of this
 34-9    state, including the governor, who has submitted the notice and Act
34-10    to the Texas Natural Resource Conservation Commission.  The
34-11    legislature further finds that the Texas Natural Resource
34-12    Conservation Commission has filed its recommendations relating to
34-13    this Act with the governor, lieutenant governor, and speaker of the
34-14    house of representatives within the required time.  All
34-15    requirements of the constitution and laws of this state and the
34-16    rules and procedures of the legislature with respect to the notice,
34-17    introduction, and passage of this Act have been fulfilled and
34-18    accomplished.
34-19          SECTION 3.  This Act takes effect immediately if it receives
34-20    a vote of two-thirds of all the members elected to each house, as
34-21    provided by Section 39, Article III, Texas Constitution.  If this
34-22    Act does not receive the vote necessary for immediate effect, this
34-23    Act takes effect September 1, 2001.