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