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 * * * * *