1-1     By:  Glaze (Senate Sponsor - Cain)                    H.B. No. 3647
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     April 30, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably, as
 1-5     amended, by the following vote:  Yeas 5, Nays 0; May 11, 2001, sent
 1-6     to printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                                 By:  Cain
 1-8     Amend HB 3647 as follows:
 1-9           (1)  On page 10, line 18, strike the word "RESIDENTIAL".
1-10           (2)  On page 10, line 18, create a subsection with existing
1-11     language by inserting "(a)" between "PROPERTY." and "Because".
1-12           (3)  On page 10 between lines 22 and 23, insert a new
1-13     subsection as follows:  "(b)  The district may not impose an impact
1-14     fee or assessment on the property, equipment, or facilities of a
1-15     utility."
1-16                            A BILL TO BE ENTITLED
1-17                                   AN ACT
1-18     relating to the creation of the Smith County Economic Development
1-19     District; providing the authority to impose a tax and issue bonds.
1-20           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-21           SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-22     amended by adding Chapter 385 to read as follows:
1-23          CHAPTER 385.  SMITH COUNTY ECONOMIC DEVELOPMENT DISTRICT
1-24                      SUBCHAPTER A.  GENERAL PROVISIONS
1-25           Sec. 385.001.  CREATION OF DISTRICT; LEGISLATIVE DECLARATION.
1-26     (a)  Notwithstanding any law relating to consent by political
1-27     subdivisions to the creation of conservation and reclamation
1-28     districts and the inclusion of land in those districts, the Smith
1-29     County Economic Development District is created as a special
1-30     district under Section 59, Article XVI, Texas Constitution.
1-31           (b)  The district is a unit of government for purposes of
1-32     Chapter 101, Civil Practice and Remedies Code (Texas Tort Claims
1-33     Act), and operations of the district are considered to be essential
1-34     governmental functions and not proprietary functions for all
1-35     purposes, including the application of the Texas Tort Claims Act.
1-36           (c)  The board by resolution may change the district's name.
1-37           (d)  The creation of the district is essential to the
1-38     accomplishment of the purposes of Section 52, Article III, and
1-39     Section 59, Article XVI, Texas Constitution, and to the
1-40     accomplishment of the public purposes stated in this chapter.
1-41           (e)  The district is necessary to promote, develop,
1-42     encourage, and maintain employment, commerce, economic development,
1-43     and public welfare in the Smith County Economic Development
1-44     District.  The creation of the district and this chapter are not to
1-45     be interpreted to relieve Smith County or any other political
1-46     subdivision from providing the level of services as of the
1-47     effective date of this chapter, to the area included in the
1-48     district or to release the county or political subdivision from its
1-49     obligations to provide services to that area. The district is
1-50     created to supplement and not supplant such services in the area
1-51     included within the district.
1-52           (f)  Except as otherwise provided by this chapter, the
1-53     district is not subject to the jurisdiction or supervision of the
1-54     commission under Chapter 49, Water Code, or other law.
1-55           Sec. 385.002.  DEFINITIONS.  In this chapter:
1-56                 (1)  "Board" means the board of directors of the
1-57     district.
1-58                 (2)  "Commission" means the Texas Natural Resource
1-59     Conservation Commission.
1-60                 (3)  "District" means the Smith County Economic
1-61     Development District.
1-62                 (4)  "Improvement project" means any program or project
1-63     authorized by this chapter, inside or outside the district, that is
 2-1     necessary to accomplish the public purposes of the district.
 2-2           Sec. 385.003.  BOUNDARIES.  The district includes all of the
 2-3     territory contained within the tracts of land described as follows:
 2-4                                   Tract I
 2-5                                72.149 acres
 2-6     All that certain tract or parcel of land situated in the A. J.
 2-7     Lagrone Survey, Abstract 571, the David Barclay Survey, Abstract
 2-8     91, and the Isaac Read Survey, Abstract 813, Smith County, Texas,
 2-9     being out of and a part of the remainder of that certain 40.05 acre
2-10     First Tract and 44.88 acre Second Tract described in a Warranty
2-11     Deed from Ann Clyde (Clinkscales) McCombs to Betty Ruth Yancy et
2-12     vir Bobby Joe Yancy, dated May 27, 1992, and recorded in Volume
2-13     3238, Page 330 of the Land Records of Smith County, Texas, and
2-14     being more particularly described by metes and bounds as follows:
2-15     BEGINNING at a 1/2" iron rod found for the southwest corner of the
2-16     herein described tract, same being the point of intersection of the
2-17     west line of said 44.88 acre tract with the north right-of-way line
2-18     of Interstate Highway 20; a concrete monument found for reference
2-19     bears South 80 26'29" East, 40.46 feet;
2-20     THENCE, North 05 38'10" East, with the west line of said 44.88 acre
2-21     tract, same being the east line of that certain 25.555 acre Tract
2-22     One described in a Warranty Deed in Cancellation of Debt from
2-23     Featherston, Inc. to Black Stone Paving, Inc. and recorded in
2-24     Volume 3684, Page 800 of said Land Records, and generally with a
2-25     barbed wire fence, a distance of 1375.02 feet to a 1/2" iron rod
2-26     set for the northeast corner of said 25.555 acre tract, same being
2-27     the northeast corner of that certain tract described in a Special
2-28     Warranty Deed to Elbert Carroll Hooper et ux Rose Marie Hooper, of
2-29     record in Volume 1336, Page 174 of the Deed Records of Smith
2-30     County, same being in the south right-of-way line of U.S. Highway
2-31     271;
2-32     THENCE, North 68 19'10" East with said south right-of-way line of
2-33     U.S. Highway 271, a distance of 54.37 feet to a concrete
2-34     right-of-way monument found for an angle point in same;
2-35     THENCE, North 68 23'11" East, continuing with said south
2-36     right-of-way line of U.S. Highway 271, a distance of 800.26 feet to
2-37     a concrete right-of-way monument found for an angle point in same;
2-38     THENCE, North 65 30'49" East, continuing with said south
2-39     right-of-way line of U.S. Highway 271, a distance of 200.18 feet to
2-40     a concrete right-of-way monument found for an angle point in same;
2-41     THENCE, North 68 21'49" East, continuing with said south
2-42     right-of-way line of U.S. Highway 271, a distance of 956.63 feet to
2-43     a 1/2" iron pipe found for the northern northeast corner of the
2-44     herein described tract, same being the point of intersection of the
2-45     northern northeast line of said 40.05 acre tract with said south
2-46     right-of-way line; a concrete right-of-way monument found for
2-47     reference bears North 68 21'49" East, 142.48 feet;
2-48     THENCE, South 19 55'00" East, a distance of 217.20 feet to a 1/2"
2-49     iron rod set for the northern interior corner of said 40.05 acre
2-50     tract;
2-51     THENCE North 84 34'00" East, a distance of 117.56 feet to a 2" iron
2-52     rod found for the southern northeast corner of the herein described
2-53     tract, same being the point of intersection of the southern
2-54     northeast line of said 40.05 acre tract with the west right-of-way
2-55     line of FM Highway 757;
2-56     THENCE, South 20 11'34" West, with said west right-of-way line of
2-57     FM Highway 757, a distance of 608.33 feet to a 1/2" iron rod set
2-58     for the point of curvature and the beginning of a curve to the left
2-59     having a radius of 2,904.79 feet;
2-60     THENCE, continuing with said West right-of-way line of FM Highway
2-61     757, and along said curve to the left having a radius of 2,904.79
2-62     feet, a central angle of 05 49'43", and a chord bearing and
2-63     distance of South 17 16'43" West, 295.38 feet, an arc length of
2-64     259.50 feet to a 1/2" iron rod set for the end of said curve and
2-65     the point of tangency;
2-66     THENCE, South 14 21'51" West, continuing with said west
2-67     right-of-way line of FM Highway 757 a distance of 549.28 feet to a
2-68     1/2" iron rod set a corner in the north right-of-way line of said
2-69     Interstate Highway 20;
 3-1     THENCE, North 75 52'30" West, with said north right-of-way line of
 3-2     Interstate Highway 20 a distance of 10.00 feet to a concrete
 3-3     right-of-way monument found for a corner of same;
 3-4     THENCE, South 14 31'05 West, continuing with said north
 3-5     right-of-way line of Interstate Highway 20, a distance of 457.36
 3-6     feet to a concrete right-of-way monument found for a corner of
 3-7     same;
 3-8     THENCE, North 75 07'02" West, continuing with said north
 3-9     right-of-way line of Interstate Highway 20, a distance of 202.01
3-10     feet to a concrete right-of-way monument found for a corner of
3-11     same;
3-12     THENCE, South 62 34'10" West, continuing with said north
3-13     right-of-way line of Interstate Highway 20, a distance of 518.96
3-14     feet to a concrete right-of-way monument found for a corner of
3-15     same;
3-16     THENCE, South 87 33'33" West, continuing with said north
3-17     right-of-way line of Interstate Highway 20, a distance of 369.53
3-18     feet to a concrete right-of-way monument found for a corner of
3-19     same;
3-20     THENCE, North 80 26'29" West, continuing with said north
3-21     right-of-way line of Interstate Highway 20, at 576.73 feet pass
3-22     said concrete right-of-way monument found for reference, and
3-23     continuing in all a total distance of 617.19 feet to the POINT OF
3-24     BEGINNING and containing 72.149 acres of land.
3-25                                  Tract II
3-26                                19.806 acres
3-27     All that certain tract or parcel of land situated in the Asa Wright
3-28     Survey, Abstract 1037, the David Barclay Survey, Abstract 91, and
3-29     the Isaac Read Survey, Abstract 813, Smith County, Texas, being out
3-30     of and a part of the remainder of that certain 25.555 acre Tract
3-31     One described in a Warranty Deed in Cancellation of Debt from
3-32     Featherston, Inc. to Black Stone Paving, Inc., dated June 1, 1995,
3-33     and recorded in Volume 3684, Page 800 of the Land Records of Smith
3-34     County, Texas, and being more particularly described by metes and
3-35     bounds as follows:
3-36     BEGINNING at a 1/2" iron rod found for the southeast corner of said
3-37     25.555 acre tract, same being in the north right-of-way line of
3-38     Interstate Highway 20; a concrete monument found for reference
3-39     bears South 80 26'29" East, 40.46 feet;
3-40     THENCE, North 66 15'00" West, with the south line of said 25.555
3-41     acre tract, same being said north right-of-way line of Interstate
3-42     Highway 20 (and the bearing basis of this survey as related to the
3-43     record bearing), a distance of 1,223.37 feet to a 1/2" iron rod
3-44     found for the southeast corner of that certain 3.000 acre tract
3-45     described in a deed to Exstar Development Inc., of record in Volume
3-46     3989, Page 568 of the Official Public Records of Smith County,
3-47     Texas, same being the southwest corner of the herein described
3-48     tract;
3-49     THENCE, North 28 35'30" East, with the southeast line of said 3000
3-50     acre tract, a distance of 395.10 feet to a 1/2" iron rod found for
3-51     a corner of same;
3-52     THENCE, North 21 30'45" West, a distance of 100.03 feet to a 1/2"
3-53     iron rod found for the northwest corner of the herein described
3-54     tract, same being in the north line of said 25.555 acre tract, same
3-55     being in the south right-of-way line of U.S. Highway 271;
3-56     THENCE, N 68 28'07" East, with the north line of said 25.555 acre
3-57     tract, same being said south right-of-way line of U.S. Highway 271,
3-58     a distance of 924.26 feet to a 1/2" iron rod found for the
3-59     northwest corner of that certain tract described in a Special
3-60     Warranty Deed to Elbert Carroll Hooper et ux Rose Marie Hooper, of
3-61     record in volume 1336, Page 174 of the Deed Records of Smith
3-62     County, Texas, same being the northern Northeast corner of the
3-63     herein described tract;
3-64     Thence South 05 27'10" West, a distance of 504.24 feet to a 1/2"
3-65     iron rod set for the southwest corner of said Hooper tract;
3-66     Thence, South 84 21'50" East, a distance of 230.40 feet to a 1/2"
3-67     iron rod set for the southeast corner of said Hooper tract, same
3-68     being the southern northeast corner of the hererin described tract;
3-69     same being in the east line of said 25.555 acre tract;
 4-1     Thence, South 05 38'10" West, with the east line of said 25.555
 4-2     acre tract, a distance of 750.95 feet to the POINT OF BEGINNING and
 4-3     containing 19.806 acres of land.
 4-4                                  Tract III
 4-5                                 3.000 acres
 4-6     All that certain tract or parcel of land situated in the Asa Wright
 4-7     Survey, Abstract 1037, and the Isaac D. Read Survey, Abstract 813,
 4-8     Smith County, Texas, being all of that certain called 2.500 acre
 4-9     Tract One described in a Warranty Deed from Black Stone Paving,
4-10     Inc., to John Pollard, Jr., dated June 1, 1995, and recorded in
4-11     Volume 3684, Page 809 of the Land Records of Smith County, Texas,
4-12     and being out of and a part of the remainder of that certain 25.555
4-13     acre Tract One described in a Warranty deed in Cancellation of Debt
4-14     from Featherston, Inc. to Black Stone Paving, Inc., dated June 1,
4-15     1995, and recorded in Volume 3684, Page 800 of the Land Records of
4-16     Smith County, Texas, and being more particularly described by metes
4-17     and bounds as follows:
4-18     BEGINNING at a concrete monument found for the southwest corner of
4-19     said 2.500 acre tract, same being the point of intersection of the
4-20     north right-of-way line of Interstate Highway 20 with the southeast
4-21     right-of-way line of U.S. Highway 271;
4-22     THENCE, North 53 35'37" East, with said southeast right-of-way line
4-23     of U.S. Highway 271, a distance of 163.34 feet to a 1/2" iron rod
4-24     set for a corner of said 2.500 acre tract;
4-25     THENCE, North 72 39'34" East, continuing with said southeast
4-26     right-of-way line of U.S. Highway 271, a distance of 200.50 feet to
4-27     a 1/2" iron rod found for a corner of said 2.500 acre tract;
4-28     THENCE, North 68 28'53" East, continuing with said southeast
4-29     right-of-way line of U.S. Highway 271, a distance of 268.34 feet to
4-30     a 1/2" iron rod set for the northwest corner of said 2.500 acre
4-31     tract;
4-32     THENCE, South 21 30'45" East, a distance of 100.03 feet to a 1/2"
4-33     iron rod found for the northeast corner of said 2.500 acre tract;
4-34     Thence 28 35'30" West, a distance of 395.10 feet to a 1/2" iron rod
4-35     found for the  southeast corner of the herein described tract, same
4-36     being in the south line of said 25.555 acre tract, same being in
4-37     said north right-of-way line of Interstate Highway 20;
4-38     Thence 66 15'00" West, with the South line of said 25.555 acre
4-39     tract, same being said North right-of-way line of Interstate
4-40     Highway 20 (and the bearing basis of this survey as related to the
4-41     record bearing), at 109.61 feet pass a 1/2" iron rod found for the
4-42     southeast corner of said 2.500 acre tract, and continuing in all a
4-43     total distance of 458.96 feet to the POINT OF BEGINNING and
4-44     containing 3.000 acres of land.
4-45                                  Tract IV
4-46                                 1.044 acres
4-47     All that certain tract or parcel of land situated in the A. J.
4-48     Lagrone Survey, Abstract 571, Smith County, Texas, being out of and
4-49     a part of that certain called 1.220 acre tract described in a
4-50     Warranty Deed with Vendor's Lien from J. G. Andrews to Herman L.
4-51     Stevenson et ux Dorothy Stevenson, dated December 10, 1968,
4-52     recorded in Volume 1286, Page 357 of the Deed Records of Smith
4-53     County, Texas, and being more particularly described by metes and
4-54     bounds as follows:
4-55     BEGINNING at a 1/2" iron pipe found for the northwest corner of
4-56     said 1.220 acre tract, same being in the south right-of-way line of
4-57     U.S. Highway 271;
4-58     THENCE, North 68 21'49" east, with said south right-of-way line of
4-59     U.S. Highway 271, a distance of 142.48 feet to a concrete
4-60     right-of-way monument found for an angle point in same, same being
4-61     a north corner of said 1.220 acre tract;
4-62     THENCE, South 76 09'34" East, continuing with said south
4-63     right-of-way line of U.S. Highway 271, a distance of 136.59 feet to
4-64     a concrete right-of-way monument found for a corner in the
4-65     northeast line of said 1.220 acre tract, same being in the west
4-66     right-of-way line of F.M. 757;
4-67     THENCE, South 19 10'20" West, with said west right-of-way line of
4-68     F.M. 757, a distance of 225.44 feet to a 2" iron rod found for the
4-69     southeast corner of the herein described tract, same being in the
 5-1     southern northeast line of that certain 40.05 acre First Tract
 5-2     described in a Warranty Deed from Ann Clyde (Clinkscales) McCombs
 5-3     to Betty Ruth Yancy et vir Bobby Joe Yancy, dated May 27, 1992, and
 5-4     recorded in Volume 3238, Page 330 of the Land Records of Smith
 5-5     County, Texas;
 5-6     THENCE, South 84 34'00" West, with said southern northeast line of
 5-7     said 40.05 acre tract, a distance of 117.56 feet to a 1/2" iron rod
 5-8     set for the northern interior corner of same;
 5-9     THENCE, North 19 55'00" West, with the northern northeast line of
5-10     said 40.05 acre tract, a distance of 217.20 feet to the POINT OF
5-11     BEGINNING and containing 1.044 acres of land.
5-12                                   Tract V
5-13                                10.394 acres
5-14     All of that certain parcel or tract of land located in the David
5-15     Barclay Survey, Abstract No. 91 and the Aston Shafner Survey,
5-16     Abstract No. 868, Smith County, Texas, and being part of that
5-17     certain 26.9 acre tract conveyed to James T. Kyles by Gerald W.
5-18     Kyles on October 13, 1964, and recorded in Volume 1133, Page 19 of
5-19     the Deed Records of Smith County, Texas, and being more completely
5-20     described as follows, to-wit:
5-21     BEGINNING at a 1/2" iron rod for corner, being at the intersection
5-22     of the East line of the above mentioned 26.9 acre tract and the
5-23     North right-of-way line of Interstate Highway 20;
5-24     THENCE in a Northwesterly direction, with the North right-of-way
5-25     line of the said Interstate Highway 20, as follows:  North 87  29'
5-26     West 93.87 feet to a right-of-way monument; North 64  11' West
5-27     380.79 feet to a right-of-way monument; North 40  30' West 368.61
5-28     feet to a right-of-way monument; and North 73  44' West at 57.49
5-29     feet to a right-of-way monument;
5-30     THENCE North 14  39' East, a distance of 375.74 feet to a 1/2" iron
5-31     rod for corner, being at the intersection of the East right-of-way
5-32     line of FM Highway 757 and the South right-of-way line of FM
5-33     Highway No. 1252;
5-34     THENCE in an Easterly Direction, with the South right-of-way line
5-35     of FM Highway No. 1252 as follows:  South 75  44' East 50.51 feet;
5-36     South 81  18' East 138.22 feet;  South 88  34' East 120.49 feet;
5-37     North 84  12' East 118.61 feet; North 76  26' East 121.38 feet; and
5-38     North 71  37' East 107.38 feet to a 1" iron rod for corner, being
5-39     in the East line of the above mentioned 26.9 acre tract;
5-40     THENCE South 00  31' West, with the East line of the 26.9 acre
5-41     tract, a distance of 867.87 feet to the place of beginning,
5-42     containing 10.394 acres of land.
5-43                                  Tract VI
5-44                                 3.226 acres
5-45     All of that certain parcel or tract of land located in the David
5-46     Barclay Survey, Abstract No. 91 and the Aston Shafner Survey,
5-47     Abstract No. 868, Smith County, Texas, and being part of that
5-48     certain 26.9 acre tract conveyed to James T. Kyles by Gerald W.
5-49     Kyles on October 13, 1964, and recorded in Volume 1133, Page 19 of
5-50     the Deed Records of Smith County, Texas, and being more completely
5-51     described as follows, to-wit:
5-52     BEGINNING at a 1/2" iron rod for corner, being at the intersection
5-53     of the East  line of the above mentioned 26.9 acre tract and the
5-54     South right-of-way line of Interstate Highway 20;
5-55     THENCE South 00  31' West, with the East line of the 26.9 acre
5-56     tract, a distance of 358.82 feet to a strap iron for corner, being
5-57     the southeast corner of the 26.9 acre tract;
5-58     Thence North 89 30' West, with the South line of the 26.9 acre
5-59     tract, a distance of 314.60 feet to a 1/2" iron rod for corner,
5-60     being in the center of a creek, also being the Southerly Southwest
5-61     corner of the 26.9 acre tract;
5-62     THENCE North 30  37' West, with the center of said creek, a
5-63     distance of 252.78 feet to a point for corner in the center of said
5-64     creek;
5-65     THENCE North 45  51' West, a distance of 52.88 feet to a 1/2" iron
5-66     rod for corner; said corner being in the South right-of-way line of
5-67     Interstate Highway 20;
5-68     THENCE North 63  42' East, with the South line of said Interstate
5-69     Highway 20, a distance of 254.85 feet to a right of way monument;
 6-1     THENCE South 87  29' East, continuing with the South right-of-way
 6-2     line of said Interstate Highway 20, a distance of 256.27 feet to
 6-3     the place of beginning, containing 3.226 acres of land.
 6-4                                  Tract VII
 6-5                                 2.996 acres
 6-6     All that certain tract or parcel of land situated in the Isaac D.
 6-7     Read Survey, Abstract 813, and the David Barclay Survey, Abstract
 6-8     91, Smith County, Texas, being all of that certain tract described
 6-9     in a Special Warranty Deed to Elbert Carroll Hooper et ux Rose
6-10     Marie Hooper, of record in Volume 1336, Page 174 of the Deed
6-11     Records of Smith County, Texas, and being more particularly
6-12     described by metes and bounds as follows:
6-13     BEGINNING at a 1/2" iron rod found for the northwest corner of said
6-14     Hooper tract, same being in the South right-of-way line of U.S.
6-15     Highway 271;
6-16     THENCE, North 68 19'10" East, with said South right-of-way line of
6-17     U.S. Highway 271, a distance of 261.13 feet to a 1/2" iron rod set
6-18     for the northeast corner of said Hooper tract;
6-19     THENCE, South 05 38'10" West, a distance of 624.07 feet to a 1/2"
6-20     iron rod set for the southeast corner of said Hooper tract;
6-21     THENCE, North 84 21'50" West, a distance of 230.40 feet to a 1/2"
6-22     iron rod set for the southwest corner of said Hooper tract;
6-23     THENCE, North 05 27'10" East, with the West line of said Hooper
6-24     tract, a distance of 504.24 feet to the POINT OF BEGINNING and
6-25     containing 2.996 acres of land.
6-26                                 Tract VIII
6-27                                16.130 acres
6-28     All that certain tract or parcel of land, being 16.130 acres
6-29     situated in the Acton Shofner Survey, Abstract No. 868, Smith
6-30     County, Texas, being part of that certain called 26.93 acre tract
6-31     described in a Quitclaim Deed from James O. Kay to Buryl C. Kay,
6-32     dated July 24, 1996, recorded in Volume 3840, Page 474 of the Land
6-33     Records of Smith County, Texas, said 16.130 acres being more
6-34     completely described as follows, to-wit:
6-35     Bearings are based on the monumented East line of tracts one and
6-36     two described in a deed to Jay T. Gordon et al, recorded in Volume
6-37     4723, Page 277.
6-38     BEGINNING at the Northwest corner of the above mentioned Buryl C.
6-39     Kay tract, being near the center of the paved surface of FM Highway
6-40     1252 (also known as the Tyler-Thunderstruck Road), a 1" iron rod
6-41     (found for a reference) bears South 00 31'00" West, 42.06 feet,
6-42     said 1" iron rod being the Northeast corner of the Jay T. Gordon et
6-43     al Tract One (called 10.394 acres) recorded in Volume 4723, Page
6-44     277;
6-45     THENCE North 71 11'57" East, generally along the center of the
6-46     paved surface of said FM Highway 1252 and with the North line of
6-47     said Kay tract, a distance of 720.51 feet to the Northeast corner
6-48     of same, a Sucker rod (found for reference) bears South 00 55'54"
6-49     West, 42.74 feet, said Sucker rod being the Northwest corner of the
6-50     CBLS Family Trust called 1.952 acre tract recorded in Volume 3985,
6-51     Page 161;
6-52     THENCE South 00 55'54" West, with the East line of said Kay tract,
6-53     with the West line of said CBLS Family Trust Tract, with the West
6-54     Line of the Randall L. McIntyre, et ux, called 16.1013 acre tract
6-55     recorded in Volume 3500, Page 531 and with the West line of the
6-56     American Fidelity Savings Association called 0.786 of an acre
6-57     recorded in Volume 2893, Page 433, a total distance of 1171.51 feet
6-58     to a 1" iron pipe (found) for the Southwest corner of said 0.786 of
6-59     an acre tract, being in the North line of Interstate Highway 20;
6-60     THENCE North 87 28'34" West with the North line of said Interstate
6-61     Highway 20, a distance of 671.86 feet to a 1/2" iron rod (found) in
6-62     the West line of the above mentioned Buryl C. Kay tract, being the
6-63     Southeast corner of the above mentioned Jay T. Gordon et al Tract
6-64     One;
6-65     THENCE North 00 31'00" East, with the West line of the Kay tract,
6-66     same being the East line of said Jay T. Gordon, et al, tract, a
6-67     distance of 909.60 feet to THE PLACE OF BEGINNING, containing
6-68     16.130 acres of land, of which, 0.88 of an acre is within the
6-69     right-of-way of the above mentioned FM Highway 1252.
 7-1           Sec. 385.004.  FINDINGS RELATED TO BOUNDARIES.  The
 7-2     legislature finds that the boundaries and field notes of the
 7-3     district form a closure. A mistake in the field notes or in copying
 7-4     the field notes in the legislative process does not affect the
 7-5     organization, existence, or validity of the district, the right of
 7-6     the district to enter into any type of contract for the purposes
 7-7     for which the district is created, the right of the district to
 7-8     impose, assess, or collect taxes, fees, or charges, or the
 7-9     operation of the district or its governing body.
7-10           Sec. 385.005.  FINDING OF BENEFIT AND PUBLIC PURPOSE.  (a)
7-11     All of the land and other property included within the boundaries
7-12     of the district will be benefited by the works, projects,
7-13     improvements, and services that are to be accomplished by the
7-14     district under powers conferred by Section 52, Article III, and
7-15     Section 59, Article XVI, Texas Constitution, and other powers
7-16     granted under this chapter.  The district is created to serve a
7-17     public use and benefit.
7-18           (b)  The creation of the district:
7-19                 (1)  is essential to further the public purposes of the
7-20     economic development and diversification of the state, the
7-21     elimination of unemployment and underemployment, and the
7-22     stimulation and development of transportation and commerce;
7-23                 (2)  is in the public interest; and
7-24                 (3)  will promote the health, safety, and general
7-25     welfare of residents, employers, employees, and consumers in the
7-26     district and of the general public.
7-27           (c)  The district will provide needed funding for the
7-28     district area to preserve, maintain, and enhance the economic
7-29     health and vitality of the area as a community and business and
7-30     commerce center. The district will further promote the health,
7-31     safety, welfare, education, convenience, and enjoyment of the
7-32     public by improving, landscaping, and developing certain areas
7-33     within and adjacent to the district and providing public services
7-34     and facilities within and adjacent to the district that are
7-35     necessary for the restoration, preservation, enhancement, and
7-36     enjoyment of scenic and aesthetic beauty. The improvement projects
7-37     authorized by this Act are essential to carrying out a public
7-38     purpose. The district will not act as the agent or instrumentality
7-39     of any private interests, even though private interests and the
7-40     general public will benefit from the district.
7-41           Sec. 385.006.  CONSTRUCTION OF CHAPTER.  This chapter shall
7-42     be liberally construed in conformity with the findings and purposes
7-43     stated in this chapter.
7-44              (Sections 385.007-385.030 reserved for expansion
7-45                       SUBCHAPTER B. POWERS AND DUTIES
7-46           Sec. 385.031.  GENERAL POWERS AND DUTIES.  (a)  The district
7-47     has all of the powers and duties provided by the general law of
7-48     this state, including:
7-49                 (1)  Subchapter E, Chapter 375;
7-50                 (2)  the general laws of this state on conservation and
7-51     reclamation districts created under Section 59, Article XVI, Texas
7-52     Constitution, including Chapters 49 and 54, Water Code; and
7-53                 (3)  the general laws of this state on road districts
7-54     and road utility districts created under Section 52(b)(3), Article
7-55     III, Texas Constitution, including Chapter 441, Transportation
7-56     Code.
7-57           (b)  If any provision of the general law is in conflict or
7-58     inconsistent with this chapter, this chapter prevails. Any general
7-59     law that supplements the power and authority of the district, to
7-60     the extent not in conflict or inconsistent with this chapter, is
7-61     adopted and incorporated by reference.
7-62           Sec. 385.032.  IMPROVEMENT PROJECTS.  The district may
7-63     conduct or authorize the following types of improvement projects or
7-64     activities in support of or incidental to improvement projects:
7-65                 (1)  the planning, design, construction, improvement,
7-66     and maintenance of:
7-67                       (A)  landscaping;
7-68                       (B)  highway right-of-way or transit corridor
7-69     beautification and improvements;
 8-1                       (C)  lighting, banners, and signs;
 8-2                       (D)  streets or sidewalks;
 8-3                       (E)  hiking and cycling paths and trails,
 8-4     pedestrian walkways, skywalks, crosswalks, or tunnels;
 8-5                       (F)  parks, lakes, gardens, recreational
 8-6     facilities, open space, scenic areas, and related exhibits and
 8-7     preserves;
 8-8                       (G)  fountains, plazas, and pedestrian malls; and
 8-9                       (H)  drainage or storm water detention
8-10     improvements;
8-11                 (2)  the planning, design, construction, improvement,
8-12     maintenance, and operation of:
8-13                       (A)  solid waste, water, sewer, or power
8-14     facilities or services, including electrical, gas, steam, and
8-15     chilled water facilities; or
8-16                       (B)  off-street parking facilities, bus
8-17     terminals, and heliports;
8-18                 (3)  the planning and acquisition of:
8-19                       (A)  public art and sculpture and related
8-20     exhibits and facilities; and
8-21                       (B)  educational and cultural exhibits and
8-22     facilities;
8-23                 (4)  the planning, design, construction, acquisition,
8-24     lease, rental, improvement, maintenance, installation, and
8-25     management of and provision of furnishings for facilities for:
8-26                       (A)  conferences, conventions, or exhibitions;
8-27                       (B)  manufacturer, consumer, or trade shows;
8-28                       (C)  civic, community, or institutional events;
8-29     and
8-30                       (D)  exhibits, displays, attractions, special
8-31     events, and seasonal or cultural celebrations and holidays;
8-32                 (5)  the removal, razing, demolition, or clearing of
8-33     land or improvements in connection with any improvement project;
8-34                 (6)  the acquisition and improvement of land and other
8-35     property for the mitigation of the environmental effects of any
8-36     improvement project;
8-37                 (7)  the acquisition of real or personal property or an
8-38     interest in real or personal property in connection with an
8-39     authorized improvement project;
8-40                 (8)  any special or supplemental services for the
8-41     improvement and promotion of the district or the areas adjacent to
8-42     the district or for the protection of public health and safety
8-43     within or adjacent to the district, including advertising,
8-44     promotion, tourism, health and sanitation, public safety, security,
8-45     fire protection or emergency medical services, business
8-46     recruitment, development, elimination of traffic congestion, and
8-47     recreational, educational, or cultural improvements, enhancements,
8-48     and services; and
8-49                 (9)  any similar public improvements, facilities, or
8-50     services.
8-51           Sec. 385.033.  POWERS RELATED GENERALLY TO FINANCIAL AND
8-52     TERRITORIAL MATTERS.  The district may:
8-53                 (1)  impose, assess, and apply the proceeds from a
8-54     limited sales and use tax as authorized by Section 385.111 for
8-55     authorized purposes;
8-56                 (2)  borrow money for district purposes;
8-57                 (3)  add or exclude territory in the manner provided by
8-58     Subchapter J, Chapter 49, Water Code, as limited by Section 54.016,
8-59     Water Code, except that:
8-60                       (A)  for purposes of this subdivision, a
8-61     reference in Subchapter J, Chapter 49, Water Code, or Section
8-62     54.016, Water Code, to a tax means an ad valorem tax; and
8-63                       (B)  Section 54.016, Water Code, and Section
8-64     42.042, Local Government Code, do not apply to the district's
8-65     annexation of land restricted primarily to commercial or business
8-66     use;
8-67                 (4)  enter into a contract with any person for the
8-68     accomplishment of any district purpose, including a contract for:
8-69                       (A)  the payment, repayment, or reimbursement of
 9-1     any costs incurred by that person for or on behalf of the district,
 9-2     including all or part of the costs of any improvement project and
 9-3     interest on the reimbursed cost; or
 9-4                       (B)  the use, occupancy, lease, rental,
 9-5     operation, maintenance, or management of all or part of a proposed
 9-6     or existing improvement project;
 9-7                 (5)  apply for and contract with any person to receive,
 9-8     administer, and perform any duty or obligation of the district
 9-9     under any federal, state, local, or private gift, grant, loan,
9-10     conveyance, transfer, bequest, donation, or other financial
9-11     assistance arrangement relating to the investigation, planning,
9-12     analysis, study, design, acquisition, construction, improvement,
9-13     completion, implementation, or operation by the district or others
9-14     of a proposed or existing improvement project;
9-15                 (6)  establish, revise, repeal, enforce, collect, and
9-16     apply the proceeds from user fees or charges for the enjoyment,
9-17     sale, rental, or other use of the district's facilities, services,
9-18     properties, or improvement projects;
9-19                 (7)  provide or secure the payment or repayment of the
9-20     costs and expenses of the establishment, administration, and
9-21     operation of the district and the district's costs or share of the
9-22     costs of any improvement project or district contractual obligation
9-23     or indebtedness by or through a lease, installment purchase
9-24     contract, or other agreement with any person, or the levy and
9-25     assessment of taxes, user fees, concessions, rentals, or other
9-26     revenues or resources of the district;
9-27                 (8)  undertake separately or jointly with other persons
9-28     all or part of the cost of an improvement project, including an
9-29     improvement project:
9-30                       (A)  for improving, enhancing, and supporting
9-31     public safety and security, fire protection and emergency medical
9-32     services, and law enforcement within and adjacent to the district;
9-33     or
9-34                       (B)  that confers a general benefit on the entire
9-35     district or a special benefit on a definable part of the district;
9-36     and
9-37                 (9)  impose, collect, and apply the proceeds from a
9-38     hotel occupancy tax as provided by Sections 385.112 and 385.113.
9-39           Sec. 385.034.  RULES AND REGULATIONS.  The district may
9-40     adopt, amend, and enforce by ordinary civil remedies reasonable
9-41     rules and regulations:
9-42                 (1)  for the administration and operation of the
9-43     district;
9-44                 (2)  for the use, enjoyment, availability, protection,
9-45     security, and maintenance of the district's properties and
9-46     facilities; and
9-47                 (3)  to provide for public safety and security within
9-48     the district.
9-49           Sec. 385.035.  SECURITY SERVICES.  The district may not
9-50     employ peace officers but may contract for off-duty peace officers
9-51     to provide public safety and security services as the board
9-52     determines necessary.
9-53           Sec. 385.036.  ECONOMIC DEVELOPMENT.  The district may
9-54     exercise the economic development powers and authority that Chapter
9-55     380 provides to a municipality with a population of more than
9-56     100,000, and Chapter 1509, Government Code, provides to a
9-57     municipality.
9-58           Sec. 385.037.  ROADWAYS, PARKS, OTHER PUBLIC AREAS.  (a)  The
9-59     board by rule may regulate the private use of public roadways, open
9-60     spaces, parks, sidewalks, and similar public areas within the
9-61     district. To the extent the rules of the district conflict with a
9-62     rule, order, ordinance, or regulation of a county or municipality
9-63     with jurisdiction in the district's territory, the rule, order,
9-64     ordinance, or regulation of the county or municipality controls.
9-65     The rules may provide for the safe and orderly use of public
9-66     roadways, open spaces, parks, sidewalks, and similar public areas
9-67     or facilities.
9-68           (b)  The board may require a permit for a parade,
9-69     demonstration, celebration, entertainment event, or a similar
 10-1    nongovernmental activity in or on the public roadways, open spaces,
 10-2    parks, sidewalks, and similar public areas or facilities. The board
 10-3    may charge a fee for the permit application and for public safety
 10-4    or security services in an amount the board considers necessary.
 10-5          (c)  The board may require a permit or franchise agreement
 10-6    with a vendor, concessionaire, exhibitor, or similar private or
 10-7    commercial person or organization for the limited use of the area
 10-8    or facilities on terms and conditions and on payment of a permit or
 10-9    franchise fee the board may impose.
10-10          Sec. 385.038.  TERMS OF EMPLOYMENT; COMPENSATION.  The board
10-11    may employ and establish the terms of employment and compensation
10-12    of a president, vice president, executive director, general
10-13    manager, and any other operating officer of the district the board
10-14    considers necessary.
10-15          Sec. 385.039.  PROHIBITION ON EMINENT DOMAIN.  The district
10-16    may not exercise the power of eminent domain.
10-17          Sec. 385.040.  PROHIBITION ON IMPACT FEES AND ASSESSMENTS ON
10-18    CERTAIN RESIDENTIAL PROPERTY.  Because the district is created in
10-19    an area that is devoted primarily to commercial and business
10-20    activity, the district may not impose an impact fee or assessment
10-21    on a single family residential property or a residential duplex,
10-22    triplex, quadriplex, or condominium.
10-23             (Sections 385.041-385.070 reserved for expansion
10-24                     SUBCHAPTER C.  BOARD OF DIRECTORS
10-25          Sec. 385.071.  BOARD OF DIRECTORS.  Except as provided by
10-26    this subchapter, the district is governed by a board of five
10-27    directors elected by the voters of the district at large.  Except
10-28    as provided by Sections 385.073(b) and 385.074, directors serve
10-29    staggered terms of four years and until their successors have been
10-30    elected and have qualified.
10-31          Sec. 385.072.  QUALIFICATIONS.  To be qualified to serve as
10-32    an elected director, a person must be at least 18 years of age and
10-33    be:
10-34                (1)  a resident of the district;
10-35                (2)  an owner of real property in the district;
10-36                (3)  an owner of at least 10 percent of the outstanding
10-37    interest of a corporation or general or limited partnership that
10-38    owns real property in the district; or
10-39                (4)  an agent, employee, officer, or director of any
10-40    corporation or partnership that owns real property in the district.
10-41          Sec. 385.073.  INITIAL BOARD.  (a)  On the effective date of
10-42    this Act, the initial board of directors is composed of the
10-43    following persons:
10-44                (1)  Position One: Nanci Wright;
10-45                (2)  Position Two: Gene Slater; and
10-46                (3)  Position Three: Rohn Boone.
10-47          (b)  The initial directors appointed to serve in Positions
10-48    One and Two shall serve until the first Saturday in May 2002, or
10-49    until their successors have been elected and been duly qualified.
10-50    The initial director appointed to serve in Position Three shall
10-51    serve until the first Saturday in May 2004, or until the successor
10-52    has been elected and been duly qualified.
10-53          Sec. 385.074.  ELECTED BOARD.  The board shall call and hold
10-54    an election on the first Saturday in May 2002 for the election of
10-55    directors to fill Positions One, Two, Four, and Five.  Before the
10-56    election, the board shall determine which director, of the
10-57    directors serving in Positions Four and Five, shall serve a term
10-58    expiring in May 2004. The board shall call and hold an election on
10-59    the first Saturday in May 2004 to elect a director to Position
10-60    Three and elect a director to Position Four or Five, as determined
10-61    by the board.
10-62          Sec. 385.075.  VACANCY.  A vacancy in the office of director
10-63    shall be filled by appointment of a qualified individual by a
10-64    majority vote of the remaining directors. The board may remove a
10-65    director for misconduct or failure to carry out the director's
10-66    duties by unanimous vote of all of the remaining directors.
10-67          Sec. 385.076.  DIRECTOR'S BOND.  As soon as practicable after
10-68    a director is elected or appointed, the elected director shall
10-69    execute a bond for $10,000 payable to the district and conditioned
 11-1    on the faithful performance of the director's duties.  All of the
 11-2    directors' bonds must be approved by the board.  Each director
 11-3    shall take the oath of office prescribed by the constitution for
 11-4    public office. The bond and oath shall be filed with the district
 11-5    and the district shall retain the bond and oath in its records.
 11-6          Sec. 385.077.  OFFICERS; COMPENSATION; QUORUM.  (a)  The
 11-7    directors shall elect a chair, a vice chair, a secretary, and any
 11-8    other officers as the board considers necessary.
 11-9          (b)  A position on the board may not be construed to be a
11-10    civil office of emolument for any purpose, including those purposes
11-11    described in Section 40, Article XVI, Texas Constitution.
11-12          (c)  A director is not entitled to compensation for service
11-13    on the board but is entitled to be reimbursed for necessary
11-14    expenses incurred in carrying out the duties and responsibilities
11-15    of a director.
11-16          (d)  Three directors constitute a quorum for the
11-17    consideration of matters pertaining to the district, and a
11-18    concurrence of a majority of a quorum of directors shall be
11-19    required for any official action of the district.
11-20          Sec. 385.078.  COMMON LAW PRINCIPLES.  A person who qualifies
11-21    to serve on the board is qualified to serve as a director and
11-22    participate in all votes pertaining to the business of the district
11-23    regardless of any common-law doctrine or statute regarding
11-24    conflict-of-interest, incompatibility, or similar matter to the
11-25    contrary.
11-26          Sec. 385.079.  CONFIRMATION AND DIRECTORS ELECTION.  (a)  As
11-27    soon as practicable after all initial directors have qualified for
11-28    office, the initial directors shall hold an organizational meeting
11-29    and call a confirmation election to be held on the next available
11-30    uniform election date occurring not less than 45 days after the
11-31    date of the organizational meeting.
11-32          (b)  The confirmation election shall be called and held to
11-33    confirm the establishment of the district in the manner provided by
11-34    Subchapter D, Chapter 49, Water Code.  In the event a majority of
11-35    the votes cast at a confirmation election is against the creation
11-36    of the district, the board may not call another confirmation
11-37    election for six months after the date the former confirmation
11-38    election is held.  Before a successful confirmation election, the
11-39    district:
11-40                (1)  may not borrow money or impose or assess a tax;
11-41    and
11-42                (2)  may carry on any business as the board may
11-43    determine except as provided by Subdivision (1).
11-44          (c)  An election to authorize or to discontinue the
11-45    imposition and assessment of taxes may be held in conjunction with
11-46    a confirmation or director election.
11-47          (d)  The district shall hold an election for directors on the
11-48    first Saturday in May in each even-numbered year in the manner
11-49    provided by Subchapter D, Chapter 49, Water Code.
11-50          Sec. 385.080.  OPEN RECORDS AND MEETINGS.  Chapters 551 and
11-51    552, Government Code, apply to the district.
11-52             (Sections 385.081-385.110 reserved for expansion
11-53                  SUBCHAPTER D.  TAXES; BONDS; CONTRACTS
11-54          Sec. 385.111.  LIMITED SALES AND USE TAX.  (a)  Words and
11-55    phrases used in this section that are defined by Chapters 151 and
11-56    321, Tax Code, have the meanings assigned by Chapters 151 and 321,
11-57    Tax Code.
11-58          (b)  Except as otherwise provided in this section, Subtitles
11-59    A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to the
11-60    taxes and to the administration and enforcement of the taxes
11-61    imposed by the district in the same manner that those laws apply to
11-62    state taxes.
11-63          (c)  The district may adopt, reduce, or repeal the limited
11-64    sales and use tax authorized by this section at an election in
11-65    which a majority of the qualified voters of the district voting in
11-66    the election approve the adoption or the abolition of the tax, as
11-67    applicable.
11-68          (d)  The provisions of Subchapters C, D, E, and F, Chapter
11-69    323, Tax Code, relating to county sales and use taxes shall apply
 12-1    to the application, collection, and administration of a sales and
 12-2    use tax imposed under this section to the extent consistent with
 12-3    this chapter, as if references in Chapter 323, Tax Code, to a
 12-4    county referred to the district and references to a commissioners
 12-5    court referred to the board.  Sections 323.401-323.404 and 323.505,
 12-6    Tax Code, do not apply to a tax imposed under this section.
 12-7          (e)  A tax imposed under this section or the repeal or
 12-8    reduction of a tax under this section takes effect on the first day
 12-9    of the calendar quarter occurring after the date on which the
12-10    comptroller receives the copy of the resolution as required by
12-11    Section 323.405(b), Tax Code.
12-12          (f)  On adoption of the tax authorized by this section, there
12-13    is imposed a tax of two percent, or the maximum rate at which the
12-14    combined tax rate of all local sales and use taxes in any location
12-15    in the district does not exceed two percent, on the receipts from
12-16    the sale at retail of taxable items within the district, and an
12-17    excise tax on the use, storage, or other consumption within the
12-18    district of taxable items purchased, leased, or rented from a
12-19    retailer within the district during the period that the tax is in
12-20    effect. The rate of the excise tax is the same as the rate of the
12-21    sales tax portion of the tax and is applied to the sales price of
12-22    the taxable item.  With respect to a taxable service, "use" means
12-23    the derivation in the district of direct or indirect benefit from
12-24    the service.
12-25          (g)  An election to authorize, reduce, or repeal a limited
12-26    sales and use tax may be called by order of the board and must be
12-27    held on the next available uniform election date established by
12-28    Section 41.001, Election Code, that occurs 45 or more days after
12-29    the date on which the order calling the election was passed. Notice
12-30    of the election shall be given and the election shall be held and
12-31    conducted in the manner prescribed by Chapter 54, Water Code, for
12-32    bond elections for municipal utility districts. The ballots shall
12-33    be printed to provide for voting for or against the appropriate
12-34    proposition:
12-35                (1)  "Adoption of a ___ percent district sales and use
12-36    tax within the district;"
12-37                (2)  "Reduction of the district sales and use tax
12-38    within the district from ___ percent to ___ percent;" or
12-39                (3)  "Abolition of the district sales and use tax
12-40    within the district."
12-41          (h)  If all or part of the territory of the district is
12-42    annexed by a municipality that has adopted and is imposing a sales
12-43    and use tax, the sales and use tax imposed by the district in the
12-44    annexed territory shall be reduced, if required, in even multiples
12-45    of one-eighth percent, and without the necessity for an election,
12-46    so that the combined rate of all sales and use taxes imposed by the
12-47    county, the annexing municipality, and all other political
12-48    subdivisions within the annexed territory of the district will not
12-49    exceed two percent, provided that a sales and use tax previously
12-50    adopted by the district for the annexed territory shall not be
12-51    reduced to less than one-half percent, and provided further that no
12-52    reduction of the district's sales and use tax in the portions of
12-53    the district not so annexed shall be required.
12-54          (i)  A tax imposed under this section or the reduction or
12-55    repeal of a tax under this section takes effect on the first day of
12-56    the calendar quarter occurring after the date on which the
12-57    comptroller receives the notice required by Section 323.405(b), Tax
12-58    Code.
12-59          (j)  Not later than the 10th day after the date of the
12-60    annexation or exclusion of territory by the district or the
12-61    annexation of all or part of the territory of the district by a
12-62    municipality requiring a reduction of the district's sales and use
12-63    tax as provided by Subsection (h), the board shall send to the
12-64    comptroller, by certified or registered mail, certified copies of
12-65    all resolutions, orders, or ordinances pertaining to the annexation
12-66    or exclusion of the territory by a district or municipality.
12-67          (k)  The district may examine and receive information related
12-68    to the imposition, assessment, and collection of sales and use
12-69    taxes to the same extent as if the district were a municipality.
 13-1          Sec. 385.112.  HOTEL OCCUPANCY TAX.  (a)  In this section,
 13-2    "hotel" has the meaning assigned by Section 156.001, Tax Code.
 13-3          (b)  The board by order may impose, repeal, or increase or
 13-4    decrease the rate of a tax on a person who, under a lease,
 13-5    concession, permit, right of access, license, contract, or
 13-6    agreement, pays for the use or possession or for the right to use
 13-7    or possess a room that is in a hotel located in the boundaries of
 13-8    the district, costs $2 or more each day, and is ordinarily used for
 13-9    sleeping. The amount of the tax may not exceed seven percent of the
13-10    price paid for a room in a hotel.
13-11          (c)  Subchapter A, Chapter 352, Tax Code, governs a hotel
13-12    occupancy tax authorized under this section, including the
13-13    collection of the tax, except as inconsistent with this section and
13-14    Section 385.113, subject to the limitations prescribed by Sections
13-15    352.002(b) and (c), Tax Code.
13-16          (d)  The district may examine and receive information related
13-17    to the imposition, assessment, and collection of hotel occupancy
13-18    taxes to the same extent as if the district were a municipality.
13-19          (e)  For purposes of this section, a reference in Subchapter
13-20    A, Chapter 352, Tax Code, to a county is a reference to the
13-21    district and a reference in Subchapter A, Chapter 352, Tax Code, to
13-22    the county's officers or governing body is a reference to the
13-23    board.
13-24          Sec. 385.113.  USE OF HOTEL OCCUPANCY TAX.  (a)  The district
13-25    shall apply the proceeds from a hotel occupancy tax imposed under
13-26    Section 385.112 for any of the district's purposes and for the
13-27    purposes described by Section 352.1015, Tax Code, to the extent
13-28    considered appropriate by the board.
13-29          (b)  During each interval of three calendar years following
13-30    the date on which a hotel occupancy tax imposed under Section
13-31    385.112 is initially collected, the board may not apply an annual
13-32    average of more than 10 percent of the amount of tax collected
13-33    under that section, excluding any interest earnings or investment
13-34    profits and after a deduction for the costs of imposing and
13-35    collecting the taxes, for the administrative expenses of the
13-36    district or a district purpose other than:
13-37                (1)  the costs of advertising and promoting tourism; or
13-38                (2)  the costs of business development and commerce,
13-39    including the costs of planning, designing, constructing,
13-40    acquiring, leasing, financing, owning, operating, maintaining,
13-41    managing, improving, repairing, rehabilitating, or reconstructing
13-42    improvement projects for conferences, conventions, and exhibitions,
13-43    manufacturer, consumer, or trade shows, and civic, community, or
13-44    institutional events.
13-45          (c)  For purposes of this section, a reference in Subchapter
13-46    B, Chapter 352, Tax Code, to a county is a reference to the
13-47    district and a reference in Subchapter B, Chapter 352, Tax Code, to
13-48    the county's officers or governing body is a reference to the
13-49    board.
13-50          Sec. 385.114.  BONDS.  (a)  The district may issue bonds in
13-51    the manner provided by Subchapter J, Chapter 375.  Sections 375.207
13-52    and 375.208 do not apply to bonds issued under this section.
13-53          (b)  If the district issues bonds for the primary purpose of
13-54    providing water, sewage, or drainage facilities, the district must
13-55    obtain the commission's approval in the manner provided by Section
13-56    49.181, Water Code.
13-57          (c)  In addition to the sources of money described by
13-58    Subchapter J, Chapter 375, the bonds of the district may be secured
13-59    and made payable, wholly or partly, by a pledge of any part of the
13-60    net proceeds the district receives from the sales and use tax
13-61    authorized by Section 385.111 and the hotel occupancy tax
13-62    authorized by Section 385.112.
13-63          Sec. 385.115.  CONTRACTS WITH DISTRICT.  (a)  A contract the
13-64    district enters into to carry out a purpose of this chapter may be
13-65    on any terms and for any period of time as the board may determine.
13-66          (b)  Notwithstanding any other law or charter provision, a
13-67    state agency, municipality, county, other political subdivision,
13-68    corporation, individual, or other entity may contract with the
13-69    district to carry out the purposes of this chapter without any
 14-1    further authorization.
 14-2             (Sections 385.116-385.130 reserved for expansion
 14-3                        SUBCHAPTER E.  DISSOLUTION
 14-4          Sec. 385.131.  DISSOLUTION.  The board by majority vote may
 14-5    dissolve the district at any time.  The board shall dissolve the
 14-6    district on written petition of the owners of 75 percent of the
 14-7    acreage of real property in the district.
 14-8          Sec. 385.132.  INDEBTEDNESS AND CONTRACTUAL OBLIGATIONS.  The
 14-9    board may not dissolve the district until the district's
14-10    outstanding indebtedness or contractual obligations have been
14-11    repaid or discharged.
14-12          Sec. 385.133.  TRANSFER OF PROPERTY AND ASSETS.  After the
14-13    board elects to dissolve the district, the board shall transfer
14-14    ownership of all property and assets of the district to Smith
14-15    County.
14-16          SECTION 2.  The legislature finds that the proper and legal
14-17    notice of the intention to introduce this Act, setting forth the
14-18    general substance of this Act, has been published as provided by
14-19    law, and the notice and a copy of this Act have been furnished to
14-20    all persons, agencies, officials, or entities to which they are
14-21    required to be furnished by the constitution and laws of this
14-22    state, including the governor, who has submitted the notice and Act
14-23    to the Texas Natural Resource Conservation Commission.  The
14-24    legislature further finds that the Texas Natural Resource
14-25    Conservation Commission has filed its recommendations relating to
14-26    this Act with the governor, lieutenant governor, and speaker of the
14-27    house of representatives within the required time.  All
14-28    requirements of the constitution and laws of this state and the
14-29    rules and procedures of the legislature with respect to the notice,
14-30    introduction, and passage of this Act have been fulfilled and
14-31    accomplished.
14-32          SECTION 3.  This Act takes effect immediately if it receives
14-33    a vote of two-thirds of all the members elected to each house, as
14-34    provided by Section 39, Article III, Texas Constitution.  If this
14-35    Act does not receive the vote necessary for immediate effect, this
14-36    Act takes effect September 1, 2001.
14-37                                 * * * * *