By Alexander                                          H.B. No. 3682
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers and duties of the
 1-3     NTM Improvement District; providing authority to impose taxes and
 1-4     issue bonds.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  CREATION OF DISTRICT. (a)  The NTM Improvement
 1-7     District is created in Navarro County as a municipal utility
 1-8     district under Chapters 49 and 54, Water Code, a navigation
 1-9     district under Chapters 60 and 62, Water Code, and a county
1-10     development district under Chapter 383, Local Government Code.
1-11           (b)  The board by resolution may change the district's name.
1-12           (c)  The creation of the district is essential to accomplish
1-13     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-14     Article XVI, Texas Constitution, and other public purposes stated
1-15     in this Act.
1-16           SECTION 2.  DECLARATION OF INTENT. (a)  The creation of the
1-17     district is necessary to promote, develop, encourage, and maintain
1-18     employment, commerce, transportation, housing, tourism, recreation,
1-19     arts, entertainment, economic development, safety, environmental
1-20     protection, land and natural resource conservation, and the public
1-21     welfare in the area within the district.
1-22           (b)  By creating the district and in authorizing a
1-23     municipality, county, and other political subdivisions to contract
 2-1     with the district, the legislature has established a program to
 2-2     accomplish the public purposes set out in Section 52-a, Article
 2-3     III, Texas Constitution.
 2-4           SECTION 3.  DEFINITIONS. In this Act:
 2-5                 (1)  "Board" means the board of directors of the
 2-6     district.
 2-7                 (2)  "County" means Navarro County.
 2-8                 (3)  "District" means the NTM Improvement District.
 2-9                 (4)  "Municipality" means a municipality as defined in
2-10     the local government code.
2-11           SECTION 4.  BOUNDARIES. The district includes all of the
2-12     territory within Navarro County contained within the following
2-13     described area:
2-14     The boundaries and property description of the proposed district
2-15     are as follows:
2-16     All that certain lot, tract, or parcel of land, being 26.183 acres
2-17     situated in the Robert Caradine Survey, Abstract No. 139, in
2-18     Navarro County, Texas, and being a part of tracts conveyed to Harry
2-19     Donald Nicholson, recorded in Volume 754 Page 624 and Volume 821
2-20     Page 880 of the Deed Records of Navarro County, Texas.  Said 26.183
2-21     acres tract is more fully described as follows;
2-22     Beginning at a 5/8" rod for corner, corner is in the South
2-23     right-of-way of U.S. 287 By-Pass, in the East line of said
2-24     Nicholson Tract and brs. S 31  O5' E 2061.97 feet; N 60  00' 17" E
2-25     2094.48 feet; S 32  47' 48" E 2061.97 feet; N 58  15' E 200 feet;
2-26     and S 30  48' 57" E 1007.09 feet from the most Northerly Northeast
 3-1     corner of the Nicholson tract;
 3-2     Thence S 38  48' 50" E 1270.91 feet to a T.Bar for corner in the
 3-3     North right-of-way of U.S.287;
 3-4     Thence with the North line of said highway as follows; N 74  31' W
 3-5     147.45 feet; S 15  29' W 5 feet; and N 74  31' W 2465.47 feet to a
 3-6     5/8" rod for corner;
 3-7     Thence N 0  37' W 89.36 feet to a 5/8" rod for corner in the South
 3-8     line of 287 By-Pass;
 3-9     Thence with the curve of the South line of the by-pass which has a
3-10     radius of 5804.57 feet, Length of 1902.32 feet, and a Long Cord
3-11     that brs. N 80  35' 48" E 1893.86 feet to the place of beginning
3-12     containing 26.183 acres of land.
3-13     All that certain lot, tract, or parcel of land, being 32.905 acres
3-14     situated in the Robert Caradine Survey, Abstract No. 139, in
3-15     Navarro County, Texas, and being a part of the tract described in
3-16     Volume 754 Page 624 and Volume 821 Page 880 of the Deed Records of
3-17     Navarro County, Texas. Said 32.905 acres are more fully described
3-18     as follows;
3-19     Beginning at a 1" pipe for corner, corner is N 31  45' W 13 feet
3-20     from the most Easterly Southeast corner of the tract described in
3-21     Volume 754 Page 624 and at an" L"corner in the North portion of the
3-22     tract described in Volume 821 Page 880 of the Deed Records of
3-23     Navarro County, Texas;
3-24     Thence with the North line of the tract in Volume 821 Page 880 N
3-25     56  57' 27" E 559.30 feet and N 56  43' E 85.8 feet to a 5/8" rod
3-26     for corner at Elevation 315 contour of the Richland Creek Lake;
 4-1     Thence with the 315 contour of said lake as follows; S 1  25' W
 4-2     15.6 feet; S 69' W 35 feet; S 56  W 10 feet; S 4  E 30 feet; S 54 
 4-3     E 20 feet; N 12  W 20 feet; N 73  E 35 feet; S 59  E 15 feet; S 23 
 4-4     W 20 feet; S 54  E 30 feet; S 10  E 30 feet; S 55  E 50 feet; S 34 
 4-5     E 120 feet; S 25  E 120 feet; S 14  E 50 feet; S 4  W 80 feet; S
 4-6     21  E 80 feet; S 6  W 70 feet; S 8  W 235 feet; S 22  W 80 feet; S
 4-7     30  W 70 feet; S 1  E 55 feet; S 16  W 50 feet; S 33  W 40 feet; S
 4-8     46  W 40 feet; S 55  W 35 feet; S 86  W 40 feet; N 82  W 90 feet; N
 4-9     56  W 80 feet; N 35  W 110 feet; S 64  W 30 feet; N 88  W 120 feet;
4-10     N. 69  W 135 feet; S 76  W 30 feet; S 25  W 25 feet; S 33  W 25
4-11     feet; S 44  W 30 feet; S 61  W 75 feet; N 82  W 100 feet; N 63  W
4-12     20 feet; N 30  W 65 feet; S 89  W 50 feet; N 43  W 30 feet; N 9  W
4-13     20 feet; N 20  W 120 feet; N 21  04' E 87 feet; N 34  E 100 feet; N
4-14     19  E 70 feet; North 55 feet; N 16  W 90 feet; N 1  W 45 feet; N
4-15     35  W 30 feet; S 60  W 110 feet to a stake for corner below dam at
4-16     elevation 315 contour;
4-17     Thence N 12  49' W 161.4 feet to a stake at Elevation 320 contour
4-18     of lake;
4-19     Thence with the 320 contour as follows; S 87  W 95 feet; N 73  W 55
4-20     feet; N 65  W 45 feet; N 45  W 60 feet; N 31  W 80 feet; N 8  W 160
4-21     feet; N 13  W 100 feet; N 4  W 80 feet; N 40  W 40 feet; N 33  W
4-22     200 feet; N 40  W 50 feet; N 19  W 50 feet; N 1  E 30 feet; N 12  E
4-23     45 feet; N 22  E 50 feet; N 35  E 30 feet; N 53  41' E 119.11 feet;
4-24     N 55  E 55 feet; N 41  E. 50 feet; N. 17  E 40 feet; N.21  W 30
4-25     feet; N 45  W 30 feet; N 30  W 35 feet; N 1  08' W 45.6 feet; N 50 
4-26     51' W 37.2 feet to a 5/8" rod for corner in the South right-of-way
 5-1     of U.S. Highway No. 287;
 5-2     Thence S. 74  24' E 29.4 feet with said right-of-way to a 5/8" rod
 5-3     for corner;
 5-4     Thence S 31  34' 44" E 1409.10 feet to the place of beginning
 5-5     containing 32.905 acres of land.  There is also about 2.095 acres
 5-6     between the 315 Elevation Contour and the 320 Elevation contour in
 5-7     the private lake that is to revert back to Nicholson in the event
 5-8     that the lake is drained, and this should be about 35.000 acres of
 5-9     land.
5-10     All that certain lot, tract, or parcel of land, being 0.663 acres
5-11     situated in the Robert Caradine Survey, Abstract No. 139, in
5-12     Navarro County, Texas, and being within the boundaries of the
5-13     tracts conveyed to Harry Donald Nicholson, recorded in Volume 754
5-14     Page 624 and Volume 821, Page 880 of the Deed Records of Navarro
5-15     County, Texas.  Said 0.663 acres are more fully described as
5-16     follows;
5-17     Beginning at a T-Bar for corner, said corner brs. N. 74  31' W 200
5-18     feet from the intersection of the South line of U.S. Highway No.
5-19     287 and the East line of the Nicholson Tract, corner is in the
5-20     South right-of-way of U.S. Highway No. 287;
5-21     Thence S 17  59' W 129.0 feet to a T-Bar for corner;
5-22     Thence N 77  03' W 212.5 feet to a T-Bar for corner;
5-23     Thence N 12  48' 44" E 137.04 feet to a T-Bar for corner in the
5-24     South right-of-way of U.S. Highway No. 287;
5-25     Thence S 74  31' E 224.7 feet to the place of beginning containing
5-26     0.663 acres of land.
 6-1     All that certain lot, tract, or parcel of land, being 186.635 Acres
 6-2     situated in the Robert Caradine Survey Abstract No. 139,in Navarro
 6-3     County, Texas. 186.635 acres is apart of the tracts conveyed, to
 6-4     Harry Donald Nicholson by deed recorded in Volume 754, Page 821 and
 6-5     Volume 821, Page 880 of the Deed Records of Navarro County, Texas.
 6-6     Said 186.635 Acres are more fully described as follows:
 6-7     Beginning at a 5/8" rod for corner, set by Tarrant County, corner
 6-8     is in the West line of the Nicholson tract and brs. N 31  04' W
 6-9     3990.6 feet, S 75  W 87.4 feet and N 30  23' W 3091.1 feet from the
6-10     Southwest corner of Nicholson tract, corner is also at Elevation
6-11     315 contour of lake;
6-12     Thence N 30  23' W 3725.33 feet to a 5/8" rod for corner in the
6-13     West line of said tract and at Elevation 315 of lake:
6-14     Thence, with the meanders of the 315 Lake contour as follows; S 47 
6-15     30' E 9.1 feet; N 83  27' E 36 feet; N 72  01' E 19.10 feet; S 88 
6-16     03' E 24.5 feet; S 53  11' E 35.1 feet; S 36  E 40 feet; S 20  E 50
6-17     feet; S 57  E 60 feet; S 70  E 40 feet; S 12  E 40 feet; N 86  E 45
6-18     feet; S 57  E 75 feet; N 87  E 25 feet; N 47  E 70 feet; N 79  E 25
6-19     feet; S 26  E 80 feet; S 75  E 30 feet; N 35  E 65 feet; N 73  E 20
6-20     feet; S 48  E 20 feet; S 4  E 40 feet; S 34  W 55 feet; S 14  E 30
6-21     feet; S 71  E 65 feet; S 42  E 35 feet; S 12  E 30 feet; N 24  E 80
6-22     feet; N 89  E 25 feet; N 72  E 140 feet; N 74  E 80 feet; S 87  E
6-23     20 feet; N 53  E 35 feet; N 76  E 30 feet; S 61  E 30 feet; S 33  E
6-24     20 feet; S 54  E 30 feet; N 89  E 75 feet; S 12  W 30 feet; S 31  E
6-25     25 feet; S 57  E 55 feet; S 12  E 50 feet; S 28  E 70 feet; S 5  W
6-26     30 feet; S 71  E 25 feet; S 20  E 25 feet; N 71  E 50 feet; East 30
 7-1     feet; S 14  W 25 feet; S 66  E 20 feet; S 4  W 20 feet; S 24  E 35
 7-2     feet; S 17  W 25 feet; S 65  W 30 feet; S 85  E 40 feet; S 8  E 45
 7-3     feet; S 25  W 30 feet; N 58  E 45 feet; N 60  E 110 feet; S 76  E
 7-4     80 feet; S 49  E 20 feet; S 53  W 75 feet; N 76  E 60 feet; S. 15 
 7-5     E 40 feet; N 14  E 35 feet; N 70  E 20 feet; S 44  E 20 feet; S 1 
 7-6     W 30 feet; S 26  E 50 feet; S 26  W 30 feet; S 56  E 20 feet; N 64 
 7-7     E 60 feet; S 88  E 190 feet; S 68  E 70 feet; S 64  E 70 feet; S
 7-8     85  E 50 feet; N. 78  E 50 feet; S 87  E 120 feet; S 65  E 70 feet;
 7-9     S 56  E 100 feet; S 66  E 35 feet; S 53  E 50 feet; S 68  E 30
7-10     feet; S 50  E 50 feet; S 37  E 40 feet; S 60  E 50 feet; S 12  E 60
7-11     feet; S 62  W 25 feet; S 14  E 30 feet; S 71  E 40 feet; S 16  E 40
7-12     feet; S 1  E 45 feet; S 28  W 50 feet; S 63  E 20 feet; S 16  E 20
7-13     feet; S 44  E 40 feet; N 8  W 45 feet; N 16  E 100 feet; N 25  E 50
7-14     feet; N 77  E 30 feet; S 82  E 60 feet; N 8.1  E 40 feet; N 82  E
7-15     80 feet; S 59  E 110 feet; East 25 feet; N 18  E 70 feet, N 41  E
7-16     70 feet; N 56  E 70 feet; N 68  E 45 feet; N 87  E 30 feet; N 50  E
7-17     45 feet; N 83  E 60 feet; N 67  E 65 feet; N 78  E 110 feet; S 50 
7-18     E 40 feet; N 35  E 35 feet; S 80  E 30 feet; S 39  E 80 feet; N 76 
7-19     E 15 feet; N 32  W 30 feet; N 13  E 45 feet; N 79  E 25 feet; S 60 
7-20     E 45 feet; S 40  E 40 feet; N 37  E 40 feet; S 65  E 30 feet; N 87 
7-21     E 65 feet; N 89  E 80 feet; S 44  E 70 feet; N 27  W 15 feet; N 28 
7-22     E 55 feet; N 72  E 30 feet; S 82  E 85 feet; S 50  E 30 feet; N 76 
7-23     E 25 feet; S 57  E 55 feet, N 56  E 85 feet; N 86  E 35 feet; S 66 
7-24     E 70 feet; S 86  E 25 feet; S 80  E 20 feet; S 74  E 80 feet; East
7-25     35 feet; S 64  E 80 feet; S 51  E 50 feet; S 77  E 20 feet; N 81  E
7-26     30 feet; S 67  E 90 feet; S 87  E 125 feet; S 61  E 90 feet; S 33 
 8-1     E 40 feet; S 59  E 45 feet; S 58  E 60 feet; S 19  E 35 feet; S 17 
 8-2     W 105 feet; S 25  E 95 feet; N 75  E 20 feet; S 66  E 80 feet; N
 8-3     44  E 150 feet; East 30 feet; S 64  E 70 feet; S 55  E 40 feet; S
 8-4     41  E 40 feet; N 83  E 35 feet; S 74  E 30 feet; S 62  E 300 feet;
 8-5     S 52  E 190 feet; S 46  E 320 feet; S 56  E 30 feet; S 79  E 55
 8-6     feet; N 11  W 35 feet; N 30  E 60 feet; N 44  E 70 feet; N 55  E
 8-7     100 feet; N 67  E 125 feet; N 57  E 40 feet; N 75  E 20 feet; N 88 
 8-8     E 85 feet; S 51  E 50 feet; S 22  E 80 feet; S 57  E 50 feet; S 32 
 8-9     E 35 feet; N 58  E 80 feet; N 41  E 70 feet; N 72  E 30 feet; S 80 
8-10     E 55 feet; S 63  E 80 feet; S 43  E 45 feet; S 31  E 110 feet; N
8-11     88  E 50 feet; S 23  E 45 feet; S 76  E 20 feet; S 5  W 40 feet; N
8-12     27  E 5O feet; N 48  E 160 feet; N 73  E 40 feet; S 81  E 80 feet;
8-13     S 53  E 220 feet; S 59  E 70 feet; North 20 feet; S 66  E 55 feet;
8-14     S 70  E 110 feet; S 76  E 150 feet; S 94  E 50 feet; S 48  E 50
8-15     feet; S 28  E 50 feet S 19  E 95 feet; S 48  E 90 feet; S 36  E 110
8-16     feet; S 28  E 70 feet; S 1  W 40 feet; S 13  E 100 feet; S 69  E 30
8-17     feet; N 88  E 35 feet; N 72  E 55 feet; N 60  E 70 feet; N 52  E 70
8-18     feet; N 42  E 80 feet; N 51  E 50 feet; N 62  E 200 feet; N 88  E
8-19     70 feet; S 89  43' E 40.3 feet; and 34  15' E. 19.6 feet to a 5/8"
8-20     rod for corner in one of the East lines of said tract;
8-21     Thence S. 8  43' W 351.43 feet and S 9  46' W 710.7 feet to a 5/8"
8-22     rod for corner;
8-23     Thence S. 59  48' W 438.77 feet to a 5/8" rod for corner at
8-24     Elevation 315 of Lake;
8-25     Thence with the meanders of the 315 contour of Lake as follows:  N
8-26     12  45' E 42.1 feet; N 31  50' E 42.8 feet; N 17  35' E 57.3 feet;
 9-1     N 4  50' W 79.9 feet; N 28  W 130 feet; N 17  W 120 feet; N 2  E
 9-2     125 feet; N 27  W 40 feet; N 70  W 40 feet, N 45  W 60 feet; S 44 
 9-3     W 30 feet; S 8  W 50 feet; S 36  W 50 feet; S 70  W 40 feet; N 88 
 9-4     W 45 feet; N 60  W 40 feet; N 44  W 140 feet; N 37  W 130 feet; N
 9-5     41  W 150 feet; N 38  W 120 feet; N. 31  W 120 feet; N 24  W 90
 9-6     feet; N 16  E feet; N 71  W 75 feet; N 86  W 25 feet; S 28  E 30
 9-7     feet; S 72  W 20 feet; S 88  W 145 feet; N 86  W 60 feet; N 79  W
 9-8     135 feet; N 87  W 70 feet; S 85  W 40 feet; N 86  W 70 feet; S 88 
 9-9     W 80 feet; N 85  W 60 feet; S 83  W 20 feet; S 67  W 50 feet; S 82 
9-10     W 110 feet; S 87  W 50 feet; N. 84  W 50 feet; N 71  W. 50 feet; N
9-11     44  W 40 feet; N 20  W 55 feet; N 26  W 45 feet; N 15  W 45 feet; N
9-12     31  W 30 feet; N 64  W 25 feet; N 65  W 60 feet; S 69  W 70 feet; S
9-13     77  W 100 feet; S 77  E 35 feet; N 84  E 35 feet; S 88  E 50 feet;
9-14     S 75  E 50 feet; S 57  E 40 feet; N 71  W 65 feet; N 86  W 50 feet;
9-15     S 89  W 50 feet; S 84  W 50 feet; S 87  W 100 feet; S 82  W 80
9-16     feet; N. 89  W 70 feet; N 77  W 80 feet; N 66  W 80 feet; N 50  W
9-17     140 feet; N 53  W 45 feet; N 50  W 200 feet; N 42  W 70 feet; N 25 
9-18     W 135 feet; N 34  W 40 feet; N 40  W 50 feet; N 66  W 35 feet; S
9-19     84  W 60 feet; S 86  W 100 feet; N 77  W 110 feet; N 72  W 60 feet;
9-20     N 63  W 120 feet; N 36  W 110 feet; N 69  W 15 feet; West 25 feet;
9-21     S 54  W 150 feet; S 63  W 30 feet; S 82  W 20 feet; S 71  W 45
9-22     feet; S 78  W 90 feet; N 89  W 80 feet; S 71  W 25 feet; S 77  W 80
9-23     feet; N 87  W 60 feet; S 61  W 40 feet; S 79  W 50 feet; N 46  W 40
9-24     feet; S 11  W 30 feet; S 59  W 10 feet; N 57  W 35 feet; N 84  W 15
9-25     feet; N 45  W 55 feet; S 5  W 40 feet; S 60  W 90 feet; S 68  W 100
9-26     feet; S 75  W 90 feet; N 86  W 125 feet; N 46  W 25 feet; N 8  W 25
 10-1    feet; N 48  W 20 feet; S 49  W 175 feet; S 66  W 25 feet; N 86  W
 10-2    295 feet; S 79  W 40 feet; S 66  W 250 feet; S 54  W 50 feet; N 75 
 10-3    W 30 feet; S 50  W 30 feet; S 63  W 85 feet; N 79  W 40 feet; S 60 
 10-4    W 85 feet; S 76  W 50 feet; S 67  W 50 feet; S 72  W 60 feet; S 73 
 10-5    W 45 feet; West 100 feet; S 75  W 70 feet; N 88  W 90 feet; N 34  W
 10-6    50 feet; N 11  W 50 feet; N 29  W 90 feet; S 41  W 20 feet; S 3
 10-7    feet; S 10  E 50 feet; S 17 feet; S 29  W 60 feet; S 79  W 35 feet;
 10-8    S 20  W 15 feet; S 48  W 70 feet; East 60 feet; N 47  E 40 feet; S
 10-9    70  E 20 feet; S 28  E 20 feet; S 63  E 180 feet; S 56  E 40 feet;
10-10    S 76  E 50 feet; S 57  E 45 feet; S 74  E 120 feet; S 54  E 50
10-11    feet; S 31  E 40 feet; S 6  E 70 feet; S 27  W 90 feet; S 16  W 50
10-12    feet; S 46  W 40 feet; S 26  W 40 feet; S.39  W 70 feet; S 48  W.70
10-13    feet; S 34  W 50 feet; S 51  W 140 feet; S 77  W 65 feet; N 83  W
10-14    25 feet; S 69  W 70 feet; S 48  W 20 feet; S 61  W 50 feet; S 79  W
10-15    40 feet; S 75  W 60 feet; and S 65  39' W 30.7 feet to the place of
10-16    beginning containing 186.635 Acres of land.
10-17    All that certain lot, tract, or parcel of land, being 258.743 acres
10-18    situated in the Robert Caradine Survey, Abstract No. 139, in
10-19    Navarro County, Texas, and being a part of tracts conveyed to Harry
10-20    Donald Nicholson, recorded in Volume 754 Page 624 and Volume 821
10-21    Page 880 of the Deed Records of Navarro County, Texas. Said 258.743
10-22    acres are more fully described as follows;
10-23    Beginning at a T-Bar for corner, corner is in the Northeast corner
10-24    of the Nicholson Tract and in the county road;
10-25    Thence S 31  05' E 1733 feet to a 5/8" rod for corner in an "L"
10-26    corner in said tract;
 11-1    Thence N 60  00' 17" E 2094.48 feet to a 5/8" rod for corner at one
 11-2    of the Northeast corners of said tract;
 11-3    Thence S 32  47' 48" E 2061.97 feet to a 5/8" rod for corner;
 11-4    Thence N 58  15' E 200 feet to a 5/8" rod for corner;
 11-5    Thence S 30  48' 57" E 853.63 feet to a 5/8" rod for corner in the
 11-6    North right-of-way of 287 By-Pass;
 11-7    Thence with the curve of the North right-of-way which has a length
 11-8    of 3350.89 feet, a radius of 5654.58 feet, and a Degree of 1  00'
 11-9    45" to a 5/8" rod for corner;
11-10    Thence N 81  38' 06" W 201.5 feet to a 5/8" rod for corner;
11-11    Thence with the old right-of-way of U.S.287 as follows; N 74  31' W
11-12    57.91 feet; N 15  29' E 5 feet; N 74  31' W 300 feet; S 15  29' W 5
11-13    feet; and N 74  31' W 2447.07 feet to a T-Bar for corner in the
11-14    West line of a county road;
11-15    Thence N 31  00' 20" W 935 feet to a point in a county road for
11-16    corner at the Northwest corner of the Nicholson Tract, and a 5/8"
11-17    rod brs. S 31  00' 20" E at 23 feet;
11-18    Thence N 59  55' 06" E 2603 feet with road and the North line of
11-19    the Nicholson Tract to the place of beginning containing 258.743
11-20    acres of land.
11-21    All that certain lot, tract, or parcel of land, being 369.167 acres
11-22    situated in the Robert Caradine Survey Abstract No. 139, in Navarro
11-23    County, Texas, and being a part of two tracts described in
11-24    conveyance to Harry Donald Nicholson, recorded in Volume 754, Page
11-25    and Volume 821, Page 880, both deeds are recorded in the Deed
11-26    Records of Navarro County, Texas.  Said 369.167 acres are more
 12-1    fully described as follows:
 12-2    Beginning at a 5/8" rod for corner in the West line of the
 12-3    Nicholson tract and brs. S 31  00' 20" E 1077 feet from the
 12-4    Northwest corner of said tract, corner is also in the South
 12-5    right-of-way of U.S. Highway No. 287;
 12-6    Thence with the South line of highway S 74  31' E 2338.29 feet; S
 12-7    15  29' W 5 feet; S 74  31' E 300 feet; N 15  29' E 5 feet; and S
 12-8    74  31' E 4567.49 feet to a 5/8" rod for corner in one of the East
 12-9    lines of the Nicholson tract;
12-10    Thence S 31  34' 44" E 1409.1 feet to a T-bar for corner at the
12-11    Southwest corner of the Spain tract:
12-12    Thence N 56  57' 27" E 559.30 feet and N 56  43' E 85.9 feet to a
12-13    5/8" rod for corner at Elevation 315 contour of lake;
12-14    Thence with the meanders of the 315 contour of Lake as follows:  S
12-15    1  25' W 15; 6 feet; S 69  W 35 feet; S 56  E 10 feet; S 04  E 30
12-16    feet; N 54  E 20 feet; N 12  W 20 feet; N 73  E 35 feet; S 69  E 15
12-17    feet; S 23  W 20 feet; S 54  E 30 feet; S 10  E 30 feet; S 56  E 50
12-18    feet; S 34  E 120 feet; S 25  E 120 feet; S 14  E 60 feet; S 04  W
12-19    80 feet; S 31  W 40 feet; S 06  W 70 feet; S 08  W 235 feet; S 22 
12-20    W 90 feet; S 30  W 70 feet; S 01  E 65 feet; S 16  W 60 feet; S 33 
12-21    W 40 feet; S 46  W 40 feet; S 55  W 35 feet; S 86  W 40 feet; N 82 
12-22    W 90 feet; N 66  W 80 feet; N 35  W 110 feet; S 64  W 30 feet; N
12-23    88  W 120 feet; N 69  W 135 feet; S 76  W 30 feet; S 25  W 25 feet;
12-24    S 33  W 25 feet; S 44  W 30 feet; S 61  W 25 feet; N 82  W 100
12-25    feet; N 63  W 20 feet; N 30  W 65 feet; S 89  W 20 feet; N 43  W 20
12-26    feet; N 09  W 20 feet; N 20  W 120 feet; N 34  E 100 feet; N 19  E
 13-1    70 feet; North 55 feet; N 16  W 90 feet; N 01  W 45 feet; N 35  W
 13-2    30 feet; S 60  W 40 feet; S 75  W 85 feet; S 65  W 30 feet; S 54  W
 13-3    60 feet; S 42  W 160 feet; S 57  W 70 feet; S 66  W 100 feet; S 70 
 13-4    W 65 feet; S 02  W 5O feet; S O5  W 20 feet; S 17  W 50 feet; S 36 
 13-5    W 35 feet; S 59  W 75 feet; S 75  W 70 feet; N 82  W 60 feet; N 64 
 13-6    W 70 feet; N 58  W 40 feet; N 46  W 45 feet; N 79  W 35 feet; S 61 
 13-7    W 60 feet; N 87  W 65 feet; N 76  W 100 feet; N 80  W 145 feet; N
 13-8    63  W 50 feet; S 35  W 55 feet; S 78  W 50 feet; S 61  W 135 feet;
 13-9    N 84  W 80 feet; S 75  W 45 feet; N 81  W 30 feet; S 58  W 45 feet;
13-10    S 73  W 30 feet; N 84  W 30 feet; S 64  W 20 feet; N 51  W 25 feet;
13-11    N 77  W 25 feet; N 45  W 25 feet; N.73  W 40 feet; N 27  W 40 feet;
13-12    N 58  W 30 feet; N 39  W 40 feet; N 23  W 115 feet; N 28  W 55
13-13    feet; N 46  W 30 feet; N 25  W 20 feet; N 02  E 20 feet; N 44  W 30
13-14    feet; N 10  W 45 feet; N 18  W 25 feet; N 53  W 30 feet; N 33  W 30
13-15    feet; N 03  E 30 feet; N 32  E 45 feet; N 17  E 45 feet; N 37  W 35
13-16    feet; N 72  W 30 feet; S 64  W 50 feet; N 75  W 20 feet; S 77  W 25
13-17    feet; N 74  W 20 feet; N 09  W 45 feet; N 77  W 30 feet; N 53  W 75
13-18    feet; N 31  W 25 feet; S 13  E 60 feet; S 02  E 80 feet; S 46 E 20
13-19    feet; S 79  E 35 feet; N 66  E 35 feet; N 74  E 40 feet; N 85  E 55
13-20    feet; N 64  E 35 feet; S 57  E 20 feet; S 24  W 20 feet; S 80  W 55
13-21    feet; S 87  E 45 feet; S 55  E 20 feet; S 22  W 15 feet; S 54  W 25
13-22    feet; S 89  W 20 feet; N 60  W 30 feet; S 14  W 40 feet; S 65  W 20
13-23    feet; N 44  W 50 feet; S 57  W 30 feet; S 09  W 25 feet; S 38  E 50
13-24    feet; S 65  E 80 feet; S 41  E 30 feet; S 18  W 40 feet; S 29  E 30
13-25    feet; S 07  W 50 feet; S 24  E 20 feet; S 89  E 35 feet; S 29  E 20
13-26    feet; S 02  E 40 feet; S 08  W 135 feet; S 15  W 70 feet; S 37  W
 14-1    60 feet; S 60  W 155 feet; N 88  W 20 feet; S 59  W 35 feet; S 84 
 14-2    W 35 feet; N 68  W 45 feet; S 33  W 20 feet; S 74  W 20 feet; N 81 
 14-3    W 35 feet; S 83  W 70 feet; N 88  W 55 feet; N 80  W 60 feet; N 73 
 14-4    W 70 feet; N 64  W 25 feet; N 32  W 35 feet; S 71  W 45 feet; N 82 
 14-5    W 25 feet; N 50  W 60 feet; N 42  W 35 feet; N 13  W 30 feet; N 02 
 14-6    W 100 feet; N 12  W 45 feet; N 01  W 35 feet; S 80  W 25 feet; N
 14-7    66  W 50 feet; S 42  E 70 feet; S 03  E 85 feet; S 44  W 25 feet; N
 14-8    07  W 35 feet; N 72  W 20 feet; S 30  W 35 feet; S 04  E 30 feet; S
 14-9    21  E 30 feet; S 25  W 20 feet; S 59  W 45 feet; S 85  W 20 feet; N
14-10    30  W 30 feet; S 41  W 60 feet; S 71  W 45 feet; N 41  W 25 feet; N
14-11    17  W 95 feet; N 39  W 45 feet; S 12  E 110 feet; S 23  W 40 feet;
14-12    S 57  W 35 feet; N 87  W 60 feet; S 79  W 70 feet; N 56  W 40 feet;
14-13    S 37  W 35 feet; S 78  W 25 feet; N 68  W 35 feet; N 82  W 175
14-14    feet; N 01  W 15 feet; N 34  W 15 feet; S 89  W 55 feet; N 58  W 20
14-15    feet; N 70  W 30 feet; N 38  W 35 feet; N 53  W 25 feet; N 75  W 55
14-16    feet; N 63  W 50 feet; N 21  W 35 feet; N 50  W 50 feet; N 64  W
14-17    100 feet; N 51  W 50 feet; N 26  W 35 feet; N 15  W 75 feet; N 05 
14-18    W 115 feet; N 27  W 70 feet; N 45  W 35 feet; N 23  W 50 feet; N
14-19    12  E 15 feet; N 84  E 40 feet; N 68  E 30 feet; N 87  W 60 feet; N
14-20    78  W 50 feet; S 86  W 45 feet; S 24  E 25 feet; S 85  W 120 feet;
14-21    N 65  W 45 feet; N 05  W 45 feet; N 22  E 75 feet; N 17  W 30 feet;
14-22    N 53  W 75 feet; N 02  W 40 feet; N 37  E 50 feet; N 30  E 35 feet;
14-23    N 10  E 40 feet; S 33  W 45 feet; S 40  W 30 feet; S 58  W 40 feet;
14-24    N 66  W 65 feet; N 51  W 30 feet; N 67  W 30 feet; N 50  W 30 feet;
14-25    N 59  W 80 feet; N 11  W 30 feet; N 24  E 30 feet; N 13  E 25 feet;
14-26    N 32  W 90 feet; N 27  W 130 feet; N 41  W 25 feet; S 12  E 40
 15-1    feet; S 07  E 25 feet; S 51  W 30 feet; S 84  W 25 feet; N 67  W 45
 15-2    feet; N 55  W 95 feet; N 88  W 30 feet; S 68  W 40 feet; S 80  W 55
 15-3    feet; N 55  W 25 feet; N 06  W 55 feet; N 32  W 95 feet; N 60  W 40
 15-4    feet; N 54  W 20 feet; N 30  W 25 feet; N 11  E 15 feet; N 42  W 20
 15-5    feet; N 03  W 110 feet; N 34  W 50 feet; N 20  W 30 feet; N 79  W
 15-6    30 feet; N 52  W 35 feet; N 39  W 40 feet; N 02  E 35 feet; N.50  E
 15-7    120 feet; N 39  E.65 feet; N 20  E 45 feet; N.11  W 85 feet; N 07 
 15-8    W 65 feet; S 55  W 25 feet; S 22  W 30 feet; S 05  W 125 feet; S
 15-9    21  W 50 feet; S 47  W 80 feet; S 38  W 50 feet; S 13  W 45 feet; S
15-10    30  E 30 feet; S 45  E 45 feet; S 60  E 80 feet; S 40  E 40 feet; S
15-11    01  W 125 feet; S 20  E 45 feet; S 42  E 60 feet; S 60  E 40 feet;
15-12    S 10  E 25 feet; S 34  E 30 feet; S 07  E 40 feet; S 40  E 40 feet;
15-13    S 65  E 20 feet; N 83  E 40 feet; N 68  E 45 feet; N 87  E 30 feet;
15-14    S 54  E 145 feet; S 67  E 40 feet; N 68  E 25 feet; S 59  E 40
15-15    feet; S 25  E 35 feet; S 24  W 55 feet; S 07  E 50 feet; S 53  W.50
15-16    feet; S 02  W 45 feet; S 34  E 50 feet; S 53  E 25 feet; N 84  E 20
15-17    feet; N 55  E 40 feet; N 86  E 40 feet; S 78  E 40 feet; S 51  E 40
15-18    feet; S 37  E 40 feet; S 05  E 55 feet; S 32  W 20 feet; S 73  W 25
15-19    feet; N 76  W 35 feet; N.58  W 25 feet; N 66  W 35 feet; S 37  E 50
15-20    feet; S 11  E 70 feet; S 63  E 60 feet; N 82  E 100 feet; S 15  W
15-21    40 feet; S 60  E 40 feet; S 48  E 65 feet; S 78  E 80 feet; S 83  E
15-22    100 feet; S 35  E 45 feet; S 13  E 130 feet; S 44  W 30 feet; N 62 
15-23    W 95 feet; West 25 feet; S 56  W 30 feet; S 74  W 40 feet; S 09  E
15-24    80 feet; S 44  W 30 feet; West 30 feet; N 28  W 50 feet; S 76  W 30
15-25    feet; N 71  W 60 feet; S 25  W 60 feet; S 03  W 55 feet; S 45  W 30
15-26    feet; N 82  W 35 feet; S 79  W 30 feet; S 70  W 50 feet; West 15
 16-1    feet; N 15  W 35 feet; N 13  E 35 feet; N 37  W 40 feet; N 55  W 40
 16-2    feet; S 89  W 35 feet; S 42  W 30 feet; West 20 feet; N 63  W 75
 16-3    feet; N 86  W 20 feet; S 30  W 50 feet; S 56  W 45 feet; N 62  W 70
 16-4    feet; S 87  W 25 feet; N 27  W 35 feet; N 62  W 105 feet; N.18 
 16-5    W.45 feet; N.43  W 65 feet; N 63  W 40 feet; N 74  56' W.10.1 feet;
 16-6    S 60  15' W 19.5 feet; S 72  39' W 29.2 feet; and N 74  46' W.15.8
 16-7    feet to a 5/8" rod for corner in the West line of the Nicholson
 16-8    tract:
 16-9    Thence with the West line of said tract N.30  23' W 1121.17 feet
16-10    and N 31  00' 20 W 2799 feet to the place of beginning containing
16-11    369.167 acres of land, which includes a 2.311 acres and a 0.1359
16-12    acre tract for temporary easement to State of Texas for temporary
16-13    road, save and except 0.663 acre fenced out that brs. N 74  31' W
16-14    200 feet from Northeast corner of the above-described tract and a
16-15    13.47 acre tract conveyed to Tarrant County Water Improvement
16-16    District No. 1.
16-17          SECTION 5.  FINDINGS RELATING TO BOUNDARIES. The boundaries
16-18    and field notes of the district form a closure.  If a mistake is
16-19    made in the field notes or in copying the field notes in the
16-20    legislative process, it does not affect the district's:
16-21                (1)  organization, existence, or validity;
16-22                (2)  right to issue any type of bond for the purposes
16-23    for which the district is created or to pay the principal of and
16-24    interest on a bond;
16-25                (3)  right to impose or collect taxes; or
16-26                (4)  legality of operation.
 17-1          SECTION 6.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)  All
 17-2    the land and other property included in the district will be
 17-3    benefitted by the improvements and services to be provided by the
 17-4    district under powers conferred by Sections 52 and 52-a, Article
 17-5    III, and Section 59, Article XVI, Texas Constitution, and other
 17-6    powers granted under this Act, and the district is created to serve
 17-7    a public use and benefit.
 17-8          (b)  The creation of the district is in the public interest
 17-9    and is essential to:
17-10                (1)  further the public purposes of the development and
17-11    diversification of the economy of the state; and
17-12                (2)  eliminate unemployment and underemployment and
17-13    develop or expand transportation and commerce.
17-14          (c)  The district will:
17-15                (1)  promote the health, safety, and general welfare of
17-16    residents, employers, employees, visitors, tourists, consumers in
17-17    the district, and the general public;
17-18                (2)  provide needed funding to preserve, maintain, and
17-19    enhance the economic health and vitality of the area within the
17-20    district as a community and tourism and business center;
17-21                (3)  further promote the health, safety, welfare, and
17-22    enjoyment of the public by providing pedestrian ways and by
17-23    landscaping and developing certain areas in the district, which are
17-24    necessary for the restoration, preservation, and enhancement of
17-25    scenic and aesthetic beauty; and
17-26                (4)  further the public purpose of developing and
 18-1    diversifying the economy of this state by providing incentives for
 18-2    the location and development of facilities and projects to attract
 18-3    visitors and tourists; and
 18-4                (5)  conserve the natural resources of the state by
 18-5    engaging in environmental protection and mitigation within and
 18-6    without the boundaries of the district and by protecting streams.
 18-7          (d)  Pedestrian ways along or across a street, whether at
 18-8    grade or above or below the surface, and street lighting, street
 18-9    landscaping, and street art objects are parts of and necessary
18-10    components of a street and are considered to be a street or road
18-11    improvement.
18-12          (e)  The district will not act as the agent or
18-13    instrumentality of any private interest even though many private
18-14    interests will be benefitted by the district, as will the general
18-15    public.
18-16          SECTION 7.  GENERAL POWERS AND PURPOSES. (a)  Except as
18-17    provided by this Act, the district has all of the purposes, rights,
18-18    powers, privileges, authority, and functions conferred on county
18-19    development districts by Chapter 383, Local Government Code, and by
18-20    the general laws of the state on conservation and reclamation
18-21    districts created under Section 59, Article XVI, Texas
18-22    Constitution, and operating under Chapters 49, 54, 60 and 62, Water
18-23    Code, and on road districts and road utility districts created
18-24    pursuant to Section 52, Article III, Texas Constitution, including
18-25    those conferred by Chapter 54, Water Code, together with the
18-26    additional rights, powers, privileges, authority, and functions
 19-1    contained in this Act.
 19-2          (b)  If any provision of the general law is in conflict or
 19-3    inconsistent with this Act, this Act prevails.  Any general law
 19-4    which supplements the power and authority of the district, to the
 19-5    extent not in conflict or inconsistent with this Act, is adopted
 19-6    and incorporated by reference.
 19-7          (c)  Subchapters B and C of Chapter 383, Local Government
 19-8    Code, and Sections 383.084 and 383.102 through 383.105, 383.111,
 19-9    and 383.122, Local Government Code and Section 352.107, Tax Code,
19-10    do not apply to the district.
19-11          SECTION 8.  ADDITIONAL POWERS OF DISTRICT. (a)  The district
19-12    may exercise any of its powers in areas outside the boundaries of
19-13    the district if the board determines that there is a benefit to the
19-14    district.
19-15          (b)  The district may levy, assess and apply the proceeds
19-16    from an ad valorem tax on taxable property within the district, for
19-17    the district's purposes, including without limitation a tax for the
19-18    maintenance and operation of the district and the improvements
19-19    constructed or acquired by the district or for the provision of
19-20    services by the district.
19-21          (c)  The district may levy, assess, and apply the proceeds
19-22    from a limited sales and use tax, as provided by this Act, for the
19-23    district's purposes.
19-24          (d)  The district may impose, collect, and apply the proceeds
19-25    from a hotel occupancy tax, as provided by this Act, for the
19-26    district's purposes.
 20-1          (e)  The district has the power to provide for general
 20-2    promotion and tourist advertising of the district and its vicinity
 20-3    and to conduct a marketing program to attract visitors and
 20-4    tourists, any of which may be conducted by the district pursuant to
 20-5    contracts for professional services with persons or organizations
 20-6    selected by the district.
 20-7          (f)  The district has the power to acquire, construct,
 20-8    finance, develop, own, operate, maintain and lease, as lessee or
 20-9    lessor, hotels, golf courses, convention facilities, conference
20-10    centers, arenas, amphitheaters, auditoriums, exhibition halls, and
20-11    park and recreation facilities, including swimming pools and tennis
20-12    courts.
20-13          (g)  The district has the power to acquire, construct,
20-14    finance, develop, own, operate, maintain and lease, as lessee or
20-15    lessor, roads, streets, pedestrian and transportation facilities
20-16    and utilities.
20-17          (h)  The district has the power to finance and engage in
20-18    environmental protection and mitigation or improvements, to protect
20-19    streams, preserve open spaces, and to acquire and own property
20-20    within and without the boundaries of the district for such
20-21    purposes.
20-22          (i)  The district shall have the power of eminent domain to
20-23    accomplish any corporate purpose of the district. The power of
20-24    eminent domain shall be exercised in accordance with Section
20-25    49.222, Water Code.
20-26          SECTION 9.  LIBERAL CONSTRUCTION OF ACT. This Act shall be
 21-1    liberally construed in conformity with the findings and purposes
 21-2    stated in this Act.
 21-3          SECTION 10. (a)  The district is governed by a board of five
 21-4    directors.
 21-5          (b)  Temporary directors serve until permanent directors are
 21-6    appointed under Section 12 of this Act.
 21-7          (c)  Permanent directors serve staggered four-year terms.
 21-8          (e)  Each director must qualify to serve as director in the
 21-9    manner provided by Section 49.055, Water Code.
21-10          (f)  A director serves until the director's successor has
21-11    qualified.
21-12          SECTION 11.  TEMPORARY DIRECTORS. The temporary board of
21-13    directors is composed of:
21-14                (1)  James M. Brown, Jr.;
21-15                (2)  Ed Maxon III;
21-16                (3)  James Kieth Tidwell;
21-17                (4)  Richard May; and
21-18                (5)  Donald Nickelson.
21-19          SECTION 12.  ELECTION OF DIRECTORS. (a)  On the first
21-20    Saturday in May of the first even-numbered year after the year
21-21    after the effective date of this act, an election shall be held in
21-22    the district for the election of two directors to serve two-year
21-23    terms and three directors to serve four-year terms.
21-24          (b)  On the first Saturday in May of each even-numbered year
21-25    following the first election held under this section, the
21-26    appropriate number of directors shall be elected.
 22-1          SECTION 13.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)
 22-2    Except as provided in this section:
 22-3                (1)  a director may participate in all board votes and
 22-4    decisions; and
 22-5                (2)  Chapter 171, Local Government Code, governs
 22-6    conflict of interests for board members.
 22-7          (b)  Section 171.004, Local Government Code, does not apply
 22-8    to the district. A director who has a substantial interest in a
 22-9    business or charitable entity that will receive a pecuniary benefit
22-10    from a board action shall file a one-time affidavit declaring the
22-11    interest. An additional affidavit is not required if the directors'
22-12    interest changes. After the affidavit is filed with the board
22-13    secretary, the director may participate in a discussion or vote on
22-14    that action if:
22-15                (1)  a majority of the directors have a similar
22-16    interest in the same entity; or
22-17                (2)  all other similar business or charitable entities
22-18    in the district will receive a similar pecuniary benefit.
22-19          (c)  A director who is also an officer or employee of a
22-20    public entity may not participate in the discussion of or vote on a
22-21    matter regarding a contract with that same public entity.
22-22          (d)  For purposes of this section, a director has a
22-23    substantial interest in a charitable entity in the same manner that
22-24    a person would have a substantial interest in a business entity
22-25    under Section 171.002, Local Government Code.
22-26          SECTION 14.  LIMITED SALES AND USE TAX. (a)  Without further
 23-1    authorization, the district may impose a sales and use tax for the
 23-2    benefit of the district by order or resolution of the board.
 23-3          (b)  The board may adopt, repeal, or change the rate of the
 23-4    limited sales and use tax authorized by this Act without holding an
 23-5    election.
 23-6          (c)  The provisions of Subchapters B, C, and D, Chapter 322,
 23-7    Tax Code, relating to sales and use taxes for special purpose
 23-8    taxing authorities shall apply to the application, collection, and
 23-9    administration of a sales and use tax imposed under this Act, to
23-10    the extent not inconsistent with the provisions of this Act, and
23-11    with the same effect as if references therein to a taxing entity or
23-12    the entity area referred to the district or the area within the
23-13    boundaries of the district.
23-14          (d)  A tax imposed under this Act or the repeal or change in
23-15    rate of a tax under this Act takes effect on the first day of the
23-16    first calendar quarter occurring after the expiration of the first
23-17    complete calendar quarter occurring after the date on which the
23-18    comptroller receives a copy of the order or resolution of the board
23-19    adopting, repealing, or changing the rate of the limited sales and
23-20    use tax authorized by this Act.
23-21          (e)  On adoption of the tax authorized by this Act, there is
23-22    imposed a tax on the receipts from the sale at retail of taxable
23-23    items within the district at a rate not to exceed two percent, as
23-24    well as an excise tax on the use, storage, or other consumption
23-25    within the district of taxable items purchased, leased, or rented
23-26    from a retailer during the period that the tax is effective within
 24-1    the district. The rate of the excise tax is the same as the rate of
 24-2    the sales tax portion of the tax and is applied to the sales price
 24-3    of the taxable item. With respect to a taxable service, "use" means
 24-4    the derivation in the district of direct or indirect benefit from
 24-5    the service.
 24-6          (f)  The district is entitled to examine and receive
 24-7    information from the Comptroller of Public Accounts related to the
 24-8    levy, assessment, and collection of sales and use taxes to the same
 24-9    extent as if the district were a municipality.
24-10          SECTION 15.  LIMITATION ON ADOPTION OF TAX. (a) The district
24-11    may adopt a sales and use tax only if as a result of adoption of
24-12    the tax the combined rate of all local sales and use taxes imposed
24-13    by political subdivisions having territory in the district will not
24-14    exceed two percent.
24-15          (b)  If, as a result of a general purpose annexation by a
24-16    municipality of territory in the district or if a municipality is
24-17    incorporated over the territory of the district, the overlapping
24-18    local sales and use tax rates in the area in the district will
24-19    exceed two percent, the district's sales and use tax rate is
24-20    automatically reduced to a rate that when added to the combined
24-21    rate of local sales and use taxes will equal two percent, in
24-22    accordance with Section 383.106, Local Government Code.
24-23          (c)  If the district's sales and use tax rate is reduced in
24-24    accordance with Subsection (b), Section 383.106(c), Local
24-25    Government Code, shall apply.
24-26          SECTION 16.  USE OF SALES AND USE TAX PROCEEDS. Sales and use
 25-1    taxes collected under this Act may be used only for the purposes
 25-2    for which the district was created, and the district may pledge the
 25-3    revenue derived from the district sales and use tax to the payment
 25-4    of bonds, notes or other obligations issued by the district.
 25-5          SECTION 17.  HOTEL OCCUPANCY TAX. (a)  In this section,
 25-6    "hotel" has the meaning assigned by Section 156.001, Tax Code.
 25-7          (b)  The board by order or resolution may impose a tax on a
 25-8    person who, under a lease, concession, permit, right of access,
 25-9    license, contract, or agreement, pays for the use or possession or
25-10    for the right to use or possess a room that is in a hotel located
25-11    in the boundaries of the district, costs $2 or more each day, and
25-12    is ordinarily used for sleeping. The tax authorized by this section
25-13    may be imposed at any rate not to exceed nine percent of the price
25-14    paid for a room in a hotel.
25-15          (c)  A district by order or resolution may repeal, increase,
25-16    or decrease the rate of a tax imposed under this section. The rate
25-17    of tax imposed under this section shall be equal to or greater than
25-18    the rate of hotel occupancy tax imposed by the municipality.
25-19          (d)  Except as inconsistent with this Act, Sections 352.004,
25-20    352.0041, 352.005, and 352.007, Tax Code, govern the imposition and
25-21    collection of a hotel occupancy tax authorized under this Act. A
25-22    reference in Sections 352.004, 352.0041, 352.005, and 352.007, Tax
25-23    Code, to a county, the county's officers or governing body, or the
25-24    county attorney is a reference to the district, the district's
25-25    officers or governing body, or the district's attorney, as
25-26    appropriate.
 26-1          (e)  The district is entitled to examine and receive
 26-2    information related to the levy, assessment, and collection of
 26-3    hotel occupancy taxes to the same extent as if the district were a
 26-4    municipality.
 26-5          SECTION 18.  USE OF HOTEL OCCUPANCY TAX PROCEEDS. The
 26-6    district shall apply the proceeds from a hotel occupancy tax
 26-7    imposed under this Act for any of the district's purposes and for
 26-8    the purposes described by Section 352.1015, Tax Code, to the extent
 26-9    considered appropriate by the board. The district may pledge the
26-10    revenue derived from a hotel occupancy tax imposed under this Act
26-11    to the payment of bonds, notes or other obligations issued by the
26-12    district.
26-13          SECTION 19.  BONDS AND NOTES. (a)  The Board may issue bonds,
26-14    notes or other obligations in the manner provided by Chapters 49
26-15    and 54, Water Code. Any bonds secured by ad valorem taxes issued
26-16    for water, wastewater or drainage improvements shall be approved by
26-17    the Texas Natural Resource Conservation Commission in the same
26-18    manner as required by Chapters  49 and 54, Water Code.
26-19          (b)  The bonds, notes or other obligations of the district
26-20    may be secured and made payable, wholly or partly, by a pledge of
26-21    any part of the net proceeds the district receives from:
26-22                (1)  the sales and use tax authorized by this Act;
26-23                (2)  the hotel occupancy tax authorized by this Act;
26-24                (3)  repayments the district receives from a
26-25    municipality because of a required reduction of the district's
26-26    sales and use tax or hotel occupancy tax;
 27-1                (4)  ad valorem taxes; and
 27-2                (5)  revenues from district contracts, leases and
 27-3    operation of district projects and improvements.
 27-4          SECTION 20.  BOND AND MAINTENANCE TAX ELECTION. The district
 27-5    shall not be authorized to issue bonds secured by ad valorem taxes,
 27-6    or to levy an ad valorem tax for the maintenance and operation of
 27-7    the district, unless approved by a majority of the electors of the
 27-8    district voting at an election held for such purpose, in the same
 27-9    manner provided in Chapters 49 and 54, Water Code. Section
27-10    41.001(a), Election Code, does not apply to an election held as
27-11    provided by this section. In the event of the annexation of the
27-12    district by a municipality, the municipality shall assume all debts
27-13    and obligations of the district.
27-14          SECTION 21.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
27-15    AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a)  The district may
27-16    make an agreement with or accept a donation, grant, or loan from
27-17    any person.
27-18          (b)  The implementation of a project is a governmental
27-19    function or service for the purposes of Chapter 791, Government
27-20    Code.
27-21          (c)  To protect the public interest, in addition to contracts
27-22    with any other entity, the district may contract with a
27-23    municipality or the county for the municipality or county to
27-24    provide law enforcement services in the district for a fee.
27-25          (d)  The district is a district for purposes of Chapter
27-26    43.0751, Local Government Code, and may enter into a strategic
 28-1    partnership agreement with a municipality.
 28-2          SECTION 22.  ECONOMIC DEVELOPMENT PROGRAMS. The board may
 28-3    establish and provide for the administration of one or more
 28-4    programs, including programs for making loans and grants of public
 28-5    money and providing personnel and services of the district to
 28-6    promote state or local economic development and to stimulate
 28-7    business, commercial, and tourism activity in the district.
 28-8          SECTION 23.  DISBURSEMENTS OR TRANSFERS OF FUNDS. The board
 28-9    by resolution shall establish the number of directors' signatures
28-10    and the procedure required for a disbursement or transfer of the
28-11    district's money.
28-12          SECTION 24.  EFFECTIVE DATE. This Act takes effect
28-13    immediately if it receives a vote of two-thirds of all the members
28-14    elected to each house, as provided by Section 39, Article III,
28-15    Texas Constitution. If this Act does not receive the vote necessary
28-16    for immediate effect, this Act takes effect September 1, 2001.