1-1 AN ACT 1-2 relating to the creation of the Greater Southeast Management 1-3 District; providing authority to impose a tax and issue bonds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 376, Local Government Code, is amended by 1-6 adding Subchapter K to read as follows: 1-7 SUBCHAPTER K. GREATER SOUTHEAST MANAGEMENT DISTRICT 1-8 Sec. 376.451. CREATION OF DISTRICT. (a) A special district 1-9 to be known as the "Greater Southeast Management District" exists 1-10 as a political subdivision of the state. 1-11 (b) The name of the district may be changed by resolution of 1-12 the board. 1-13 (c) The creation of the district is essential to accomplish 1-14 the purposes of Section 52, Article III, Section 59, Article XVI, 1-15 and Section 52-a, Article III, Texas Constitution, and other public 1-16 purposes stated in this subchapter. 1-17 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of 1-18 the district is necessary to promote, develop, encourage, and 1-19 maintain employment, commerce, transportation, housing, tourism, 1-20 recreation, arts, entertainment, economic development, safety, and 1-21 the public welfare in the southeast area of the city of Houston. 1-22 (b) The creation of the district and this legislation are 1-23 not to be interpreted to relieve the county or the municipality 1-24 from providing the level of services, as of the effective date of 2-1 this subchapter, to the area in the district or to release the 2-2 county or the municipality from the obligations each entity has to 2-3 provide services to that area. The district is created to 2-4 supplement and not supplant the municipal or county services 2-5 provided in the area in the district. 2-6 (c) By creating the district and in authorizing the 2-7 municipality, county, and other political subdivisions to contract 2-8 with the district, the legislature has established a program to 2-9 accomplish the public purposes set out in Section 52-a, Article 2-10 III, Texas Constitution. 2-11 Sec. 376.453. DEFINITIONS. In this subchapter: 2-12 (1) "Board" means the board of directors of the 2-13 district. 2-14 (2) "County" means Harris County, Texas. 2-15 (3) "District" means the Greater Southeast Management 2-16 District. 2-17 (4) "Municipality" means the City of Houston, Texas. 2-18 Sec. 376.454. BOUNDARIES. The district includes all the 2-19 territory contained in the following described area: 2-20 BEGINNING at a point being the point of intersection of the 2-21 centerline of the right-of-way of interstate 45 and the centerline 2-22 of the intersection of HB & TRR; 2-23 THENCE, in a south westerly direction along the centerline of HB & 2-24 TRR to the intersection or Wheeler Street; 2-25 THENCE, continuing in a southeasterly direction along the 2-26 centerline of HB & TRR, and to the intersection of the T & no RR 2-27 (Greater Houston & S.A.R.R.); 3-1 THENCE, east along T & No RR to the rear lot lines of all business 3-2 facing the West Property line on South Wayside Street; 3-3 THENCE, south parallel more or less to South Wayside to the South 3-4 Loop East passing its South property line to the rear property line 3-5 of all lots fronting on the South Loop East; 3-6 THENCE, west parallel to the South Loop East more or less along the 3-7 rear lines of all property fronting on the south property line of 3-8 the South Loop East passing Myakawa Road to the West line of Martin 3-9 Luther King Street; 3-10 THENCE, along the rear property line of the lots fronting the West 3-11 R.O.W. line of Martin Luther King Street to the north line of 3-12 Browncroft Street; 3-13 THENCE west along the north line of Browncroft St. passing USA Lane 3-14 to the south continuing in a generally west direction to the west 3-15 line of Milart Street; 3-16 THENCE South along the west line of Milart Street to the southeast 3-17 corner of tract 23 of the WCRR Co. Survey A 936; 3-18 THENCE, west along the southerly property line of Tract 23 and 14B 3-19 of the WCRR Co. Survey A 936 to the east line of Schroeder Street; 3-20 THENCE northeasterly direction along the easterly line of Schoeder 3-21 Road to its intersection with the southerly line on Griggs Road; 3-22 THENCE in a northeasterly direction along the southerly line of 3-23 Griggs Road to the intersection of the rear of the rear property 3-24 line of the lot facing Grace Lane; 3-25 THENCE in a southwesterly direction along the rear property line of 3-26 the lots facing Grace lane to the intersection of the rear property 3-27 line projection of all lots fronting, more or less the north line 4-1 of Kingsbury Lane; 4-2 THENCE westerly along the rear property line projection of all lots 4-3 fronting the north line of Kingsbury Lane to the east right-of-way 4-4 line of Calhoun Road; 4-5 THENCE northeasterly along the easterly line of Calhoun Road to the 4-6 rear property line projection of the lots fronting on Griggs Road; 4-7 THENCE, west along the rear property line of all the lots fronting 4-8 on Griggs Road to the east line of Cullen Road; 4-9 THENCE, in a southerly direction along the east line of Cullen Road 4-10 to the south line projection of Dixie Street; 4-11 THENCE, in a westerly direction along the south line of Dixie 4-12 Street, crossing St. Augustine Street, to the rear line of the lot 4-13 facing St. Augustine Street; 4-14 THENCE north to the rear lot line of the lots that front on Old 4-15 Spanish Trail; 4-16 THENCE west along the rear lot line of the lots that front on Old 4-17 Spanish Trail to the rear property line of the lot that fronts on 4-18 Scottcrest Street; 4-19 THENCE north to the south right-of-way line of Old Spanish Trail; 4-20 THENCE west to the intersection of the east line of Scott Crest 4-21 Street; 4-22 THENCE in a southwesterly direction to the rear property line of 4-23 all lots that front Zephyr Street; 4-24 THENCE in a westerly direction along the rear property line of the 4-25 lots that front Zephyr Street to west right-of-way line of 4-26 LaSallette Drive; 4-27 THENCE northwesterly along the west right-of-way line of LaSalette 5-1 Drive to the intersection of the south right-of-way line of Old 5-2 Spanish Trail; 5-3 THENCE southwesterly along the south right-of-way line of Old 5-4 Spanish Trail to rear property line of the corner lot fronting on 5-5 Tierwester Street; 5-6 THENCE south along the rear property line of the corner lot 5-7 fronting on Tierwester Street to the southeast corner of this lot; 5-8 THENCE west along the south line of the corner lot fronting on 5-9 Tierwester Street to the east right-of-way line of Tiewester 5-10 Street; 5-11 THENCE southerly along the east right-of-way line of Tierwester 5-12 Street to the south property line of Zephyr Street; 5-13 THENCE west crossing Tierwester Street, where the street names 5-14 changes from Zephyr Street to Southland Avenue and along the south 5-15 line of Southland Avenue to the intersection of the south 5-16 right-of-way line of Old Spanish Trail; 5-17 THENCE in a southwesterly direction along the south line of Old 5-18 Spanish Trail to the east line of Allegheny Street; 5-19 THENCE south along the east right-of-way line of Allegheny Street 5-20 the southeast corner of the first corner lot; 5-21 THENCE east along the south line of the corner lot to the rear 5-22 property line; 5-23 THENCE south along the rear property line for one lot long to the 5-24 southeast corner of this lot fronting on the east line of 5-25 Allegeheny Street; 5-26 THENCE west to the east property line of Alleghaney Street; 5-27 THENCE in a southwesterly direction along the east right-of-way 6-1 line of Alleghaney Street to the intersection of the north 6-2 right-of-way line of Yellowstone Street; 6-3 THENCE in a south easterly direction along the north right-of-way 6-4 line of Yellowstone Street to the east right-of-way line of 6-5 Peerless Street; 6-6 THENCE in a southerly direction along the east right-of-way line of 6-7 Peerless Street to the intersection of the south right-of-way line 6-8 of Corder Street; 6-9 THENCE, in a northwesterly direction along the southerly line of 6-10 Corder Street crossing State Highway 288 in a straight line along 6-11 the centerline of Nicholas Street to its intersection with the 6-12 westerly line of Almeda Rd.; 6-13 THENCE, in a southerly direction along the westerly line of Almeda 6-14 Rd. to its intersection with the southerly line of El Paseo St; 6-15 THENCE, in a westerly direction along the southerly line of El 6-16 Paseo to its intersection with the westerly line of Knight Rd; 6-17 THENCE, in a northerly direction along the centerline of Knight Rd. 6-18 to its intersection with Fannin St; 6-19 THENCE, along the centerline of Fannin Street in a northwesterly 6-20 direction to the intersection of Holcombe Street; 6-21 THENCE, west along the centerline of Holcombe Street to the 6-22 intersection of South Main Street; 6-23 THENCE, in a northeasterly direction along the centerline of South 6-24 Main to Palm Street, and to the intersection with the boundaries of 6-25 the Midtown TIRZ and Management District; 6-26 THENCE, southeasterly with the Southerly R.O.W. of Palm Street to 6-27 the easterly R.O.W. line of Fannin Street; 7-1 THENCE, northeasterly, with the Easterly R.O.W. line of Fannin 7-2 Street to the northerly R.O.W. line of US 59 South; 7-3 THENCE, in an easterly, direction with curve to the left and in a 7-4 northerly direction along the northerly R.O.W. line of US 59 South, 7-5 to the intersection of the westerly R.O.W. line of State Highway 7-6 288 which is also being US 59 North and crossing Interstate Highway 7-7 45 (Gulf Freeway) to the Northerly R.O.W. line thereof; said point 7-8 also being the Northwest boundary corner of the Midtown TIRZ & 7-9 Management District; 7-10 THENCE, southeasterly direction along the north right-of-way line 7-11 of Interstate Highway 45 and to the POINT OF BEGINNING, containing 7-12 19,400 acres more or less, SAVE AND EXCEPT all tracts or parcels of 7-13 land, rights-of-way, facilities, and improvements owned by an 7-14 electric utility or a power generation company as defined by 7-15 Section 31.002, Utilities Code, or a gas utility as defined by 7-16 Sections 101.003 and 121.001, Utilities Code. 7-17 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 7-18 boundaries and field notes of the district form a closure. If a 7-19 mistake is made in the field notes or in copying the field notes in 7-20 the legislative process, the mistake does not in any way affect 7-21 the: 7-22 (1) organization, existence, and validity of the 7-23 district; 7-24 (2) right of the district to issue any type of bonds 7-25 or refunding bonds for the purposes for which the district is 7-26 created or to pay the principal of and interest on the bonds; 7-27 (3) right of the district to impose and collect 8-1 assessments or taxes; or 8-2 (4) legality or operation of the district or its 8-3 governing body. 8-4 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 8-5 All the land and other property included in the district will be 8-6 benefited by the improvements and services to be provided by the 8-7 district under powers conferred by Section 52, Article III, Section 8-8 59, Article XVI, and Section 52-a, Article III, Texas Constitution, 8-9 and other powers granted under this subchapter, and the district is 8-10 created to serve a public use and benefit. 8-11 (b) The creation of the district is in the public interest 8-12 and is essential to: 8-13 (1) further the public purposes of the development and 8-14 diversification of the economy of the state; and 8-15 (2) eliminate unemployment and underemployment and 8-16 develop or expand transportation and commerce. 8-17 (c) The district will: 8-18 (1) promote the health, safety, and general welfare of 8-19 residents, employers, employees, visitors, consumers in the 8-20 district, and the general public; 8-21 (2) provide money to preserve, maintain, and enhance 8-22 the economic health and vitality of the district as a community and 8-23 business center; and 8-24 (3) further promote the health, safety, welfare, and 8-25 enjoyment of the public by providing pedestrian ways and by 8-26 landscaping and developing certain areas in the district, which are 8-27 necessary for the restoration, preservation, and enhancement of 9-1 scenic and aesthetic beauty. 9-2 (d) Pedestrian ways along or across a street, whether at 9-3 grade or above or below the surface, and street lighting, street 9-4 landscaping, and street art objects are parts of and necessary 9-5 components of a street and are considered to be a street or road 9-6 improvement. 9-7 (e) The district will not act as the agent or 9-8 instrumentality of any private interest even though many private 9-9 interests will be benefited by the district, as will the general 9-10 public. 9-11 Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise 9-12 provided by this subchapter, Chapter 375 applies to the district 9-13 and its governing body and employees. 9-14 Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter 9-15 shall be liberally construed in conformity with the findings and 9-16 purposes stated in this subchapter. 9-17 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 9-18 district is governed by a board of 21 directors who serve staggered 9-19 terms of four years, with 10 members' terms expiring June 1 of an 9-20 odd-numbered year and 11 members' terms expiring June 1 of the 9-21 following odd-numbered year. The board may increase or decrease 9-22 the number of directors on the board by resolution, provided that 9-23 it is in the best interest of the district to do so and that the 9-24 board consists of not fewer than 9 and not more than 30 directors. 9-25 (b) Subchapter D, Chapter 375, applies to the board to the 9-26 extent that subchapter does not conflict with this subchapter. The 9-27 imposition of a tax, assessment, or impact fee requires a vote of a 10-1 majority of the directors serving. Directors may vote on any 10-2 matter authorized by Subchapter D, Chapter 375, and action may be 10-3 taken by the board only if it is approved in the manner prescribed 10-4 by Subchapter D, Chapter 375. 10-5 Sec. 376.460. APPOINTMENT OF DIRECTORS; VACANCY. The mayor 10-6 and members of the governing body of the municipality shall appoint 10-7 directors from persons recommended by the board who meet the 10-8 qualifications of Subchapter D, Chapter 375. A vacancy in the 10-9 office of director because of the death, resignation, or removal of 10-10 a director shall be filled by the remaining members of the board by 10-11 appointing a qualified person for the unexpired term. 10-12 Sec. 376.461. POWERS OF DISTRICT. The district has: 10-13 (1) all powers necessary or required to accomplish the 10-14 purposes for which the district was created; 10-15 (2) the rights, powers, privileges, authority, and 10-16 functions of a district created under Chapter 375; 10-17 (3) the powers given to a corporation under Section 10-18 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's 10-19 Texas Civil Statutes), and the power to own, operate, acquire, 10-20 construct, lease, improve, and maintain projects; 10-21 (4) the power to impose ad valorem taxes, assessments, 10-22 or impact fees in accordance with Chapter 375 to provide 10-23 improvements and services for a project or activity the district is 10-24 authorized to acquire, construct, improve, or provide under this 10-25 subchapter; 10-26 (5) the power to correct, add to, or delete 10-27 assessments from its assessment rolls after notice and hearing as 11-1 provided by Subchapter F, Chapter 375; and 11-2 (6) the powers given to a housing finance corporation 11-3 created under Chapter 394 to provide housing or residential 11-4 development projects in the district. 11-5 Sec. 376.462. EMINENT DOMAIN. The district may not exercise 11-6 the power of eminent domain. 11-7 Sec. 376.463. EX OFFICIO BOARD MEMBERS. (a) The following 11-8 persons shall serve as nonvoting ex officio directors: 11-9 (1) the director of the following departments of the 11-10 municipality: 11-11 (A) parks and recreation; 11-12 (B) planning and development; 11-13 (C) public works; and 11-14 (D) civic center; 11-15 (2) the municipality's chief of police; 11-16 (3) the general manager of the Metropolitan Transit 11-17 Authority; and 11-18 (4) the presidents of any institutions of higher 11-19 learning located in the district. 11-20 (b) If a department described by Subsection (a) is 11-21 consolidated, renamed, or changed, the board may appoint a director 11-22 of the consolidated, renamed, or changed department as a nonvoting 11-23 ex officio board member. If a department described by Subsection 11-24 (a) is abolished, the board may appoint a representative of another 11-25 department of the municipality that performs duties comparable to 11-26 those performed by the abolished department. 11-27 (c) The board may appoint the presiding officer of a 12-1 nonprofit corporation that is actively involved in activities in 12-2 the municipality's midtown area to serve as a nonvoting ex officio 12-3 director. 12-4 Sec. 376.464. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. 12-5 (a) Except as provided in this section: 12-6 (1) a director may participate in all board votes and 12-7 decisions; and 12-8 (2) Chapter 171 governs conflicts of interest for 12-9 board members. 12-10 (b) Section 171.004 does not apply to the district. A 12-11 director who has a substantial interest in a business or charitable 12-12 entity that will receive a pecuniary benefit from a board action 12-13 shall file a one-time affidavit declaring the interest. An 12-14 additional affidavit is not required if the director's interest 12-15 changes. After the affidavit is filed with the board secretary, 12-16 the director may participate in a discussion or vote on that action 12-17 if: 12-18 (1) a majority of the directors have a similar 12-19 interest in the same entity; or 12-20 (2) all other similar business or charitable entities 12-21 in the district will receive a similar pecuniary benefit. 12-22 (c) A director who is also an officer or employee of a 12-23 public entity may not participate in the discussion of or vote on a 12-24 matter regarding a contract with that same public entity. 12-25 (d) For purposes of this section, a director has a 12-26 substantial interest in a charitable entity in the same manner that 12-27 a person would have a substantial interest in a business entity 13-1 under Section 171.002. 13-2 Sec. 376.465. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS 13-3 AFFECTING PROPERTY. (a) If the district, in exercising a power 13-4 conferred by this subchapter, requires a relocation, adjustment, 13-5 raising, lowering, rerouting, or changing of the grade or the 13-6 construction of any of the following items, the district must take 13-7 that required action at the sole expense of the district: 13-8 (1) a street, alley, highway, overpass, underpass, 13-9 road, railroad track, bridge, facility, or other property; 13-10 (2) an electric line, conduit, facility, or other 13-11 property; 13-12 (3) a telephone or telegraph line, conduit, facility, 13-13 or other property; 13-14 (4) a gas transmission or distribution pipe, pipeline, 13-15 main, facility, or other property; 13-16 (5) a water, sanitary sewer, or storm sewer pipe, 13-17 pipeline, main, facility, or other property; 13-18 (6) a cable television line, cable, conduit, facility, 13-19 or other property; or 13-20 (7) another pipeline, facility, or other property 13-21 relating to the pipeline. 13-22 (b) The district shall bear damages that are suffered by 13-23 owners of the facility or other property. 13-24 Sec. 376.466. RELATION TO OTHER LAW. If any provision of 13-25 general law, including a law referenced in this subchapter, is in 13-26 conflict with or is inconsistent with this subchapter, this 13-27 subchapter prevails. Any law referenced in this subchapter that is 14-1 not in conflict or inconsistent with this subchapter is adopted and 14-2 incorporated by reference. 14-3 Sec. 376.467. REQUIREMENTS FOR FINANCING SERVICES AND 14-4 IMPROVEMENTS. The board may not finance services and improvement 14-5 projects under this subchapter unless a written petition requesting 14-6 those improvements or services has been filed with the board. The 14-7 petition must be signed by: 14-8 (1) the owners of a majority of the assessed value of 14-9 real property in the district as determined by the most recent 14-10 certified county property tax rolls; or 14-11 (2) at least 50 persons who own land in the district, 14-12 if there are more than 50 persons who own property in the district 14-13 as determined by the most recent certified county property tax 14-14 rolls. 14-15 Sec. 376.468. NONPROFIT CORPORATION. (a) The board by 14-16 resolution may authorize the creation of a nonprofit corporation to 14-17 assist and act on behalf of the district in implementing a project 14-18 or providing a service authorized by this subchapter. 14-19 (b) The board shall appoint the board of directors of a 14-20 nonprofit corporation created under this section. The board of 14-21 directors of the nonprofit corporation shall serve in the same 14-22 manner as, for the same term as, and on the conditions of the board 14-23 of directors of a local government corporation created under 14-24 Chapter 431, Transportation Code. 14-25 (c) A nonprofit corporation created under this section has 14-26 the powers of and is considered for purposes of this subchapter to 14-27 be a local government corporation created under Chapter 431, 15-1 Transportation Code. 15-2 (d) A nonprofit corporation created under this section may 15-3 implement any project and provide any services authorized by this 15-4 subchapter. 15-5 Sec. 376.469. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 15-6 board by resolution shall establish the number of directors' 15-7 signatures and the procedure required for a disbursement or 15-8 transfer of the district's money. 15-9 Sec. 376.470. BONDS. (a) The district may issue bonds or 15-10 other obligations payable in whole or in part from ad valorem 15-11 taxes, assessments, impact fees, revenues, grants, or other money 15-12 of the district, or any combination of those sources of money, to 15-13 pay for any authorized purpose of the district. 15-14 (b) Bonds or other obligations of the district may be issued 15-15 in the form of bonds, notes, certificates of participation, 15-16 including other instruments evidencing a proportionate interest in 15-17 payments to be made by the district, or other obligations that are 15-18 issued in the exercise of the district's borrowing power and may be 15-19 issued in bearer or registered form or not represented by an 15-20 instrument but the transfer of which is registered on books 15-21 maintained by or on behalf of the district. The board may impose 15-22 and collect an assessment under Subchapter F, Chapter 375, for any 15-23 purpose authorized by this subchapter or by Chapter 375. 15-24 (c) Except as provided by Subsection (d), the district must 15-25 obtain the municipality's approval of: 15-26 (1) the issuance of bonds for an improvement project; 15-27 (2) the plans and specifications of the improvement 16-1 project to be financed by the bonds; and 16-2 (3) the plans and specifications of a district 16-3 improvement project related to: 16-4 (A) the use of land owned by the municipality; 16-5 (B) an easement granted by the municipality; or 16-6 (C) a right-of-way of a street, road, or 16-7 highway. 16-8 (d) If the district obtains the municipality's approval of a 16-9 capital improvements budget for a specified period not to exceed 16-10 five years, the district may finance the capital improvements and 16-11 issue bonds specified in the budget without further municipal 16-12 approval. 16-13 (e) Before the district issues bonds, the district shall 16-14 submit the bonds and the record of proceedings of the district 16-15 relating to authorization of the bonds to the attorney general for 16-16 approval as provided by Chapter 1202, Government Code. 16-17 Sec. 376.471. ASSESSMENTS. (a) The board may impose and 16-18 collect an assessment for any purpose authorized by this 16-19 subchapter. 16-20 (b) Assessments, reassessments, or assessments resulting 16-21 from an addition to or correction of the assessment roll by the 16-22 district, penalties and interest on an assessment or reassessment, 16-23 expenses of collection, and reasonable attorney's fees incurred by 16-24 the district: 16-25 (1) are a first and prior lien against the property 16-26 assessed; 16-27 (2) are superior to any other lien or claim other than 17-1 a lien or claim for county, school district, or municipal ad 17-2 valorem taxes; and 17-3 (3) are the personal liability of and charge against 17-4 the owners of the property even if the owners are not named in the 17-5 assessment proceedings. 17-6 (c) The lien is effective from the date of the resolution of 17-7 the board levying the assessment until the assessment is paid. The 17-8 board may enforce the lien in the same manner that the board may 17-9 enforce an ad valorem tax lien against real property. 17-10 Sec. 376.472. PROPERTY EXEMPTED FROM TAX, FEE, OR 17-11 ASSESSMENT. (a) The district may not impose a tax, impact fee, or 17-12 assessment on a residential property or condominium. 17-13 (b) The district may not impose an impact fee or assessment 17-14 on the property, equipment, or facilities of a utility. In this 17-15 subsection, "utility" means a person that provides to the public 17-16 cable television, gas, light, power, telephone, sewerage, or water 17-17 service. 17-18 Sec. 376.473. ELECTIONS. (a) In addition to the elections 17-19 the district must hold under Subchapter L, Chapter 375, the 17-20 district shall hold an election in the manner provided by that 17-21 subchapter to obtain voter approval before the district imposes a 17-22 maintenance tax or issues bonds payable from ad valorem taxes or 17-23 assessments. 17-24 (b) The board may submit multiple purposes in a single 17-25 proposition at an election. 17-26 Sec. 376.474. IMPACT FEES. The district may impose an 17-27 impact fee for an authorized purpose as provided by Subchapter G, 18-1 Chapter 375. 18-2 Sec. 376.475. MAINTENANCE TAX. (a) If authorized at an 18-3 election held in accordance with Section 376.473, the district may 18-4 impose and collect an annual ad valorem tax on taxable property in 18-5 the district for the maintenance and operation of the district and 18-6 the improvements constructed or acquired by the district or for the 18-7 provision of services. 18-8 (b) The board shall determine the tax rate. 18-9 Sec. 376.476. DISSOLUTION OF DISTRICT. The district may be 18-10 dissolved as provided by Subchapter M, Chapter 375. If the 18-11 district has debt and is dissolved, the district shall remain in 18-12 existence solely for the limited purpose of discharging its bonds 18-13 or other obligations according to their terms. 18-14 Sec. 376.477. CONTRACTS. (a) To protect the public 18-15 interest, the district may contract with the municipality or the 18-16 county for the municipality or county to provide law enforcement 18-17 services in the district for a fee. 18-18 (b) The municipality, the county, or another political 18-19 subdivision of the state, without further authorization, may 18-20 contract with the district to implement a project of the district 18-21 or assist the district in providing the services authorized under 18-22 this subchapter. A contract under this subsection may: 18-23 (1) be for a period on which the parties agree; 18-24 (2) include terms on which the parties agree; 18-25 (3) be payable from taxes or any other sources of 18-26 revenue that may be available for that purpose; or 18-27 (4) provide that taxes or other revenue collected at a 19-1 district project or from a person using or purchasing a commodity 19-2 or service at a district project may be paid or rebated to the 19-3 district under the terms of the contract. 19-4 (c) The district may enter into a contract, lease, or other 19-5 agreement with or make or accept grants and loans to or from: 19-6 (1) the United States; 19-7 (2) the state or a state agency; 19-8 (3) a county, a municipality, or another political 19-9 subdivision of the state; 19-10 (4) a public or private corporation, including a 19-11 nonprofit corporation created by the board under this subchapter; 19-12 or 19-13 (5) any other person. 19-14 (d) The district may perform all acts necessary for the full 19-15 exercise of the powers vested in the district on terms and for the 19-16 period the board determines advisable. 19-17 Sec. 376.478. COMPETITIVE BIDDING UNIT. Section 375.221 19-18 does not apply to the district unless the contract is for more than 19-19 $25,000. 19-20 Sec. 376.479. ANNEXATION. The district may: 19-21 (1) annex territory as provided by Subchapter C, 19-22 Chapter 375; and 19-23 (2) annex territory located inside the boundaries of a 19-24 reinvestment zone created by the municipality under Chapter 311, 19-25 Tax Code, if the governing body of the municipality consents to the 19-26 annexation. 19-27 Sec. 376.480. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL 20-1 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may 20-2 make an agreement with or accept a donation, grant, or loan from 20-3 any person. 20-4 (b) The implementation of a project is a governmental 20-5 function or service for the purposes of Chapter 791, Government 20-6 Code. 20-7 (c) To protect the public interest, the district may 20-8 contract with the municipality or the county for the municipality 20-9 or county to provide law enforcement services in the district for a 20-10 fee. 20-11 SECTION 2. The legislature finds that: 20-12 (1) proper and legal notice of the intention to 20-13 introduce this Act, setting forth the general substance of this 20-14 Act, has been published as provided by law, and the notice and a 20-15 copy of this Act have been furnished to all persons, agencies, 20-16 officials, or entities to which they are required to be furnished 20-17 by the constitution and laws of this state, including the governor, 20-18 who has submitted the notice and Act to the Texas Natural Resource 20-19 Conservation Commission; 20-20 (2) the Texas Natural Resource Conservation Commission 20-21 has filed its recommendations relating to this Act with the 20-22 governor, lieutenant governor, and speaker of the house of 20-23 representatives within the required time; 20-24 (3) the general law relating to consent by political 20-25 subdivisions to the creation of districts with conservation, 20-26 reclamation, and road powers and the inclusion of land in those 20-27 districts has been complied with; and 21-1 (4) all requirements of the constitution and laws of 21-2 this state and the rules and procedures of the legislature with 21-3 respect to the notice, introduction, and passage of this Act have 21-4 been fulfilled and accomplished. 21-5 SECTION 3. Notwithstanding Section 376.459, Local Government 21-6 Code, as added by this Act: 21-7 (1) the initial board of directors of the Greater 21-8 Southeast Management District consists of: 21-9 Pos. No. Name of Director 21-10 1 Walter Strickland 21-11 2 Francis Page 21-12 3 Algenita Scott Davis 21-13 4 Ashley Smith 21-14 5 Zinetta A. Burney 21-15 6 Mark Moreno 21-16 7 Alan Bergeron 21-17 8 Barron Wallace 21-18 9 John Medina 21-19 10 Teddy McDavid 21-20 11 Robert Muhammad 21-21 12 Brian Smith 21-22 13 David Dang 21-23 14 Adele Maxie 21-24 15 Robert Dixon 21-25 16 Susan Young 21-26 17 James J. Smith 21-27 18 Richard Wainerdi 22-1 19 Ali Ashan 22-2 20 Walter Johnson 22-3 21 Jim Arnold; and 22-4 (2) of the initial board, members in positions 1-11 22-5 serve terms that expire June 1, 2005, and members in positions 22-6 12-21 serve terms that expire June 1, 2003. 22-7 SECTION 4. This Act takes effect immediately if it receives 22-8 a vote of two-thirds of all the members elected to each house, as 22-9 provided by Section 39, Article III, Texas Constitution. If this 22-10 Act does not receive the vote necessary for immediate effect, this 22-11 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3692 was passed by the House on May 5, 2001, by the following vote: Yeas 140, Nays 0, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 3692 on May 25, 2001, by the following vote: Yeas 112, Nays 0, 1 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 3692 was passed by the Senate, with amendments, on May 18, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor