By Coleman                                            H.B. No. 3692
         77R12921 MXM-D                           
                                A BILL TO BE ENTITLED
 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     Being 30.31 square miles (19,400 acres) more or less, out of the
2-21     Jos Gambel Abstract 309, G.P. Foster Abstract 273, Jos Christy
2-22     Abstract 212, Holman Abstract 323, H. Tierwester Abstract 75, Luke
2-23     Moore Abstract 51, J. Durkee Abstract 1013, WCRR Abstract 936, H.
2-24     Tierwester Abstract 760, Louis Gladitch Abstract 304, D.W.C. Harris
2-25     Abstract 325, Pleasant W. Rose Abstract 635, and Chaungey Goodrich
2-26     Abstract 302.
2-27     All Located in Harris County, Texas, being more particular
 3-1     described by metes and bounds as follow:
 3-2     BEGINNING at a point being the point of intersection of the
 3-3     centerline of the right-of-way of interstate 45 and the centerline
 3-4     of the intersection of HB & TRR;
 3-5     THENCE, in a south westerly direction along the centerline of HB &
 3-6     TRR to the intersection or Wheeler Street;
 3-7     THENCE, continuing in a southeasterly direction along the
 3-8     centerline of HB & TRR, and to the intersection of the T & no RR
 3-9     (Greater Houston & S.A.R.R.);
3-10     THENCE, east along T & No RR to the rear lot lines of all business
3-11     facing the West Property line on South Wayside Street;
3-12     THENCE, south parallel more or less to South Wayside to the South
3-13     Loop East passing its South property line to the rear property line
3-14     of all lots fronting on the South Loop East;
3-15     THENCE, west parallel to the South Loop East more or less along the
3-16     rear lines of all property fronting on the south property line of
3-17     the South Loop East passing Myakawa Road to the West line of Martin
3-18     Luther King Street;
3-19     THENCE, along the rear property line of the lots fronting the West
3-20     R.O.W. line of Martin Luther King Street to the north line of
3-21     Browncroft Street;
3-22     THENCE west along the north line of Browncroft St. passing USA Lane
3-23     to the south continuing in a generally west direction to the west
3-24     line of Milart Street;
3-25     THENCE South along the west line of Milart Street to the southeast
3-26     corner of tract 23 of the WCRR Co. Survey A 936;
3-27     THENCE, west along the southerly property line of Tract 23 and 14B
 4-1     of the WCRR Co. Survey A 936 to the east line of Schroeder Street;
 4-2     THENCE northeasterly direction along the easterly line of Schoeder
 4-3     Road to its intersection with the southerly line on Griggs Road;
 4-4     THENCE in a northeasterly direction along the southerly line of
 4-5     Griggs Road to the intersection of the rear of the rear property
 4-6     line of the lot facing Grace Lane;
 4-7     THENCE in a southwesterly direction along the rear property line of
 4-8     the lots facing Grace lane to the intersection of the rear property
 4-9     line projection of all lots fronting, more or less the north line
4-10     of Kingsbury Lane;
4-11     THENCE westerly along the rear property line projection of all lots
4-12     fronting the north line of Kingsbury Lane to the east right-of-way
4-13     line of Calhoun Road;
4-14     THENCE northeasterly along the easterly line of Calhoun Road to the
4-15     rear property line projection of the lots fronting on Griggs Road;
4-16     THENCE, west along the rear property line of all the lots fronting
4-17     on Griggs Road to the east line of Cullen Road;
4-18     THENCE, in a southerly direction along the east line of Cullen Road
4-19     to the southline projection of Dixie Street;
4-20     THENCE, in a westerly direction along the south line of Dixie
4-21     Street, crossing St. Augustine Street, to the rear line of the lot
4-22     facing St. Augustine Street;
4-23     THENCE north to the rear lot line of the lots that front on Old
4-24     Spanish Trail;
4-25     THENCE west along the rear lot line of the lots that front on Old
4-26     Spanish Trail to the rear property line of the lot that fronts on
4-27     Scottcrest Street;
 5-1     THENCE north to the south right-of-way line of Old Spanish Trail;
 5-2     THENCE west to the intersection of the east line of Scott Crest
 5-3     Street;
 5-4     THENCE in a southwesterly direction to the rear property line of
 5-5     all lots that front Zephyr Street;
 5-6     THENCE in a westerly direction along the rear property line of the
 5-7     lots that front Zephyr Street to west right-of-way line of
 5-8     LaSallette Drive;
 5-9     THENCE northwesterly along the west right-of-way line of LaSalette
5-10     Drive to the intersection of the south right-of-way line of Old
5-11     Spanish Trail;
5-12     THENCE southwesterly along the south right-of-way line of Old
5-13     Spanish Trail to rear property line of the corner lot fronting on
5-14     Tierwester Street;
5-15     THENCE south along the rear property line of the corner lot
5-16     fronting on Tierwester Street to the southeast corner of this lot;
5-17     THENCE west along the south line of the corner lot fronting on
5-18     Tierwester Street to the east right-of-way line of Tiewester
5-19     Street;
5-20     THENCE southerly along the east right-of-way line of Tierwester
5-21     Street to the south property line of Zephyr Street;
5-22     THENCE west crossing Tierwester Street, where the street names
5-23     changes from Zephyr Street to Southland Avenue and along the south
5-24     line of Southland Avenue to the intersection of the south
5-25     right-of-way line of Old Spanish Trail;
5-26     THENCE in a southwesterly direction along the south line of Old
5-27     Spanish Trail to the east line of Allegheny Street;
 6-1     THENCE south along the east right-of-way line of Allegheny Street
 6-2     the southeast corner of the first corner lot;
 6-3     THENCE east along the south line of the corner lot to the rear
 6-4     property line;
 6-5     THENCE south along the rear property line for one lot long to the
 6-6     southeast corner of this lot fronting on the east line of
 6-7     Allegeheny Street;
 6-8     THENCE, west to the east property line of Alleghaney Street;
 6-9     THENCE in a southwesterly direction along the east right-of-way
6-10     line of Alleghaney Street to the intersection of the north
6-11     right-of-way line of Yellowstone Street;
6-12     THENCE in a south easterly direction along the north right-of-way
6-13     line of Yellowstone Street to the east right-of-way line of
6-14     Peerless Street;
6-15     THENCE in a southerly direction along the east right-of-way line of
6-16     Peerless Street to the intersection of the south right-of-way line
6-17     of Corder Street;
6-18     THENCE, in a northwesterly direction along the southerly line of
6-19     Corder Street crossing State Highway 288 in a straight line along
6-20     the centerline of Nicholas Street to its intersection with the
6-21     westerly line of Almeda Rd.;
6-22     THENCE, in a northerly direction along Almeda Road to the
6-23     intersection of Old Spanish Trail;
6-24     THENCE, in a westerly direction along Old Spanish Trail to the
6-25     intersection of Fannin;
6-26     THENCE, along the centerline of Fannin Street in a northwesterly
6-27     direction to the intersection of Holcombe Street;
 7-1     THENCE, west along the centerline of Holcombe Street to the
 7-2     intersection of South Main Street;
 7-3     THENCE, in a northeasterly direction along the centerline of South
 7-4     Main to Palm Street, and to the intersection with the boundaries of
 7-5     the Midtown TIRZ and Management District;
 7-6     THENCE, southeasterly with the Southerly R.O.W. of Palm Street to
 7-7     the easterly R.O.W. line of Fannin Street;
 7-8     THENCE, northeasterly, with the Easterly  R.O.W. line of Fannin
 7-9     Street to the northerly R.O.W. line of US 59 South;
7-10     THENCE, in an easterly, direction with curve to the left and in a
7-11     northerly direction along the northerly R.O.W. line of US 59 South,
7-12     to the intersection of the westerly R.O.W. line of State Highway
7-13     288 which is also being US 59 North and crossing Interstate Highway
7-14     45 (Gulf Freeway) to the Northerly R.O.W. line thereof; said point
7-15     also being the Northwest boundary corner of the Midtown TIRZ &
7-16     Management District;
7-17     THENCE, southeasterly direction along the north right-of-way line
7-18     of Interstate Highway 45 and to the POINT OF BEGINNING, containing
7-19     19,400 acres more or less, SAVE AND EXCEPT all tracts or parcels of
7-20     land, rights-of-way, facilities, and improvements owned by an
7-21     electric utility or a power generation company as defined by
7-22     Section 31.002, Utilities Code, or a gas utility as defined by
7-23     Sections 101.003 and 121.001, Utilities Code.
7-24           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
7-25     boundaries and field notes of the district form a closure.  If a
7-26     mistake is made in the field notes or in copying the field notes in
7-27     the legislative process, the mistake does not in any way affect
 8-1     the:
 8-2                 (1)  organization, existence, and validity of the
 8-3     district;
 8-4                 (2)  right of the district to issue any type of bonds
 8-5     or refunding bonds for the purposes for which the district is
 8-6     created or to pay the principal of and interest on the bonds;
 8-7                 (3)  right of the district to impose and collect
 8-8     assessments or taxes; or
 8-9                 (4)  legality or operation of the district or its
8-10     governing body.
8-11           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
8-12     All the land and other property included in the district will be
8-13     benefited by the improvements and services to be provided by the
8-14     district under powers conferred by Section 52, Article III, Section
8-15     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
8-16     and other powers granted under this subchapter, and the district is
8-17     created to serve a public use and benefit.
8-18           (b)  The creation of the district is in the public interest
8-19     and is essential to:
8-20                 (1)  further the public purposes of the development and
8-21     diversification of the economy of the state; and
8-22                 (2)  eliminate unemployment and underemployment and
8-23     develop or expand transportation and commerce.
8-24           (c)  The district will:
8-25                 (1)  promote the health, safety, and general welfare of
8-26     residents, employers, employees, visitors, consumers in the
8-27     district, and the general public;
 9-1                 (2)  provide money to preserve, maintain, and enhance
 9-2     the economic health and vitality of the district as a community and
 9-3     business center; and
 9-4                 (3)  further promote the health, safety, welfare, and
 9-5     enjoyment of the public by providing pedestrian ways and by
 9-6     landscaping and developing certain areas in the district, which are
 9-7     necessary for the restoration, preservation, and enhancement of
 9-8     scenic and aesthetic beauty.
 9-9           (d)  Pedestrian ways along or across a street, whether at
9-10     grade or above or below the surface, and street lighting, street
9-11     landscaping, and street art objects are parts of and necessary
9-12     components of a street and are considered to be a street or road
9-13     improvement.
9-14           (e)  The district will not act as the agent or
9-15     instrumentality of any private interest even though many private
9-16     interests will be benefited by the district, as will the general
9-17     public.
9-18           Sec. 376.457.  APPLICATION OF OTHER LAW.  Except as otherwise
9-19     provided by this subchapter, Chapter 375 applies to the district
9-20     and its governing body and employees.
9-21           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
9-22     shall be liberally construed in conformity with the findings and
9-23     purposes stated in this subchapter.
9-24           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
9-25     district is governed by a board of 17 directors who serve staggered
9-26     terms of four years, with nine members' terms expiring June 1 of an
9-27     odd-numbered year and eight members' terms expiring June 1 of the
 10-1    following odd-numbered year.  The board may increase or decrease
 10-2    the number of directors on the board by resolution, provided that
 10-3    it is in the best interest of the district to do so and that the
 10-4    board consists of not fewer than 9 and not more than 30 directors. 
 10-5          (b)  Subchapter D, Chapter 375, applies to the board to the
 10-6    extent that subchapter does not conflict with this subchapter.  The
 10-7    imposition of a tax, assessment, or impact fee requires a vote of a
 10-8    majority of the directors serving.  Directors may vote on any
 10-9    matter authorized by Subchapter D, Chapter 375, and action may be
10-10    taken by the board only if it is approved in the manner prescribed
10-11    by Subchapter D, Chapter 375.
10-12          Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor
10-13    and members of the governing body of the municipality shall appoint
10-14    directors from persons recommended by the board who meet the
10-15    qualifications of Subchapter D, Chapter 375.  A vacancy in the
10-16    office of director because of the death, resignation, or removal of
10-17    a director shall be filled by the remaining members of the board by
10-18    appointing a qualified person for the unexpired term.
10-19          Sec. 376.461.  POWERS OF DISTRICT.  The district has:
10-20                (1)  all powers necessary or required to accomplish the
10-21    purposes for which the district was created;
10-22                (2)  the rights, powers, privileges, authority, and
10-23    functions of a district created under Chapter 375;
10-24                (3)  the powers given to a corporation under Section
10-25    4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
10-26    Texas Civil Statutes), and the power to own, operate, acquire,
10-27    construct, lease, improve, and maintain projects;
 11-1                (4)  the power to impose ad valorem taxes, assessments,
 11-2    or impact fees in accordance with Chapter 375 to provide
 11-3    improvements and services for a project or activity the district is
 11-4    authorized to acquire, construct, improve, or provide under this
 11-5    subchapter;
 11-6                (5)  the power to correct, add to, or delete
 11-7    assessments from its assessment rolls after notice and hearing as
 11-8    provided by Subchapter F, Chapter 375; and
 11-9                (6)  the powers given to a housing finance corporation
11-10    created under Chapter 394 to provide housing or residential
11-11    development projects in the district.
11-12          Sec. 376.462.  EMINENT DOMAIN.  The district may not exercise
11-13    the power of eminent domain.
11-14          Sec. 376.463.  EX OFFICIO BOARD MEMBERS.  (a)  The following
11-15    persons shall serve as nonvoting ex officio directors:
11-16                (1)  the director of the following departments of the
11-17    municipality:
11-18                      (A)  parks and recreation;
11-19                      (B)  planning and development;
11-20                      (C)  public works; and
11-21                      (D)  civic center;
11-22                (2)  the municipality's chief of police;
11-23                (3)  the general manager of the Metropolitan Transit
11-24    Authority; and
11-25                (4)  the presidents of any institutions of higher
11-26    learning located in the district.
11-27          (b)  If a department described by Subsection (a) is
 12-1    consolidated, renamed, or changed, the board may appoint a director
 12-2    of the consolidated, renamed, or changed department as a nonvoting
 12-3    ex officio board member.  If a department described by Subsection
 12-4    (a) is abolished, the board may appoint a representative of another
 12-5    department of the municipality that performs duties comparable to
 12-6    those performed by the abolished department.
 12-7          (c)  The board may appoint the presiding officer of a
 12-8    nonprofit corporation that is actively involved in activities in
 12-9    the municipality's midtown area to serve as a nonvoting ex officio
12-10    director.
12-11          Sec. 376.464.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
12-12    (a)  Except as provided in this section:
12-13                (1)  a director may participate in all board votes and
12-14    decisions; and
12-15                (2)  Chapter 171 governs conflicts of interest for
12-16    board members.
12-17          (b)  Section 171.004 does not apply to the district.  A
12-18    director who has a substantial interest in a business or charitable
12-19    entity that will receive a pecuniary benefit from a board action
12-20    shall file a one-time affidavit declaring the interest.  An
12-21    additional affidavit is not required if the director's interest
12-22    changes.  After the affidavit is filed with the board secretary,
12-23    the director may participate in a discussion or vote on that action
12-24    if:
12-25                (1)  a majority of the directors have a similar
12-26    interest in the same entity; or
12-27                (2)  all other similar business or charitable entities
 13-1    in the district will receive a similar pecuniary benefit.
 13-2          (c)  A director who is also an officer or employee of a
 13-3    public entity may not participate in the discussion of or vote on a
 13-4    matter regarding a contract with that same public entity.
 13-5          (d)  For purposes of this section, a director has a
 13-6    substantial interest in a charitable entity in the same manner that
 13-7    a person would have a substantial interest in a business entity
 13-8    under Section 171.002.
 13-9          Sec. 376.465.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
13-10    AFFECTING PROPERTY.  (a)  If the district, in exercising a power
13-11    conferred by this subchapter, requires a relocation, adjustment,
13-12    raising, lowering, rerouting, or changing of the grade or the
13-13    construction of any of the following items, the district must take
13-14    that required action at the sole expense of the district:
13-15                (1)  a street, alley, highway, overpass, underpass,
13-16    road, railroad track, bridge, facility, or other property;
13-17                (2)  an electric line, conduit, facility, or other
13-18    property;
13-19                (3)  a telephone or telegraph line, conduit, facility,
13-20    or other property;
13-21                (4)  a gas transmission or distribution pipe, pipeline,
13-22    main, facility, or other property;
13-23                (5)  a water, sanitary sewer, or storm sewer pipe,
13-24    pipeline, main, facility, or other property;
13-25                (6)  a cable television line, cable, conduit, facility,
13-26    or other property; or
13-27                (7)  another pipeline, facility, or other property
 14-1    relating to the pipeline.
 14-2          (b)  The district shall bear damages that are suffered by
 14-3    owners of the facility or other property.
 14-4          Sec. 376.466.  RELATION TO OTHER LAW.  If any provision of
 14-5    general law, including a law referenced in this subchapter, is in
 14-6    conflict with or is inconsistent with this subchapter, this
 14-7    subchapter prevails.  Any law referenced in this subchapter that is
 14-8    not in conflict or inconsistent with this subchapter is adopted and
 14-9    incorporated by reference.
14-10          Sec. 376.467.  REQUIREMENTS FOR FINANCING SERVICES AND
14-11    IMPROVEMENTS.  The board may not finance services and improvement
14-12    projects under this subchapter unless a written petition requesting
14-13    those improvements or services has been filed with the board.  The
14-14    petition must be signed by:
14-15                (1)  the owners of a majority of the assessed value of
14-16    real property in the district as determined by the most recent
14-17    certified county property tax rolls; or
14-18                (2)  at least 50 persons who own land in the district,
14-19    if there are more than 50 persons who own property in the district
14-20    as determined by the most recent certified county property tax
14-21    rolls.
14-22          Sec. 376.468.  NONPROFIT CORPORATION.  (a)  The board by
14-23    resolution may authorize the creation of a nonprofit corporation to
14-24    assist and act on behalf of the district in implementing a project
14-25    or providing a service authorized by this subchapter.
14-26          (b)  The board shall appoint the board of directors of a
14-27    nonprofit corporation created under this section.  The board of
 15-1    directors of  the nonprofit corporation shall serve in the same
 15-2    manner as, for the same term as, and on the conditions of the board
 15-3    of directors of a local government corporation created under
 15-4    Chapter 431, Transportation Code.
 15-5          (c)  A nonprofit corporation created under this section has
 15-6    the powers of and is considered for purposes of this subchapter to
 15-7    be a local government corporation created under Chapter 431,
 15-8    Transportation Code.
 15-9          (d)  A nonprofit corporation created under this section may
15-10    implement any project and provide any services authorized by this
15-11    subchapter.
15-12          Sec. 376.469.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
15-13    board by resolution shall establish the number of directors'
15-14    signatures and the procedure required for a disbursement or
15-15    transfer of the district's money.
15-16          Sec. 376.470.  BONDS.  (a)  The district may issue bonds or
15-17    other obligations payable in whole or in part from ad valorem
15-18    taxes, assessments, impact fees, revenues, grants, or other money
15-19    of the district, or any combination of those sources of money, to
15-20    pay for any authorized purpose of the district.
15-21          (b)  Bonds or other obligations of the district may be issued
15-22    in the form of bonds, notes, certificates of participation,
15-23    including other instruments evidencing a proportionate interest in
15-24    payments to be made by the district, or other obligations that are
15-25    issued in the exercise of the district's borrowing power and may be
15-26    issued in bearer or registered form or not represented by an
15-27    instrument but the transfer of which is registered on books
 16-1    maintained by or on behalf of the district.  The board may impose
 16-2    and collect an assessment under Subchapter F, Chapter 375, for any
 16-3    purpose authorized by this subchapter or by Chapter 375.
 16-4          (c)  Except as provided by Subsection (d), the district must
 16-5    obtain the municipality's approval of:
 16-6                (1)  the issuance of bonds for an improvement project;
 16-7                (2)  the plans and specifications of the improvement
 16-8    project to be financed by the bonds; and
 16-9                (3)  the plans and specifications of a district
16-10    improvement project related to:
16-11                      (A)  the use of land owned by the municipality;
16-12                      (B)  an easement granted by the municipality; or
16-13                      (C)  a right-of-way of a street, road, or
16-14    highway.
16-15          (d)  If the district obtains the municipality's approval of a
16-16    capital improvements budget for a specified period not to exceed
16-17    five years, the district may finance the capital improvements and
16-18    issue bonds specified in the budget without further municipal
16-19    approval.
16-20          (e)  Before the district issues bonds, the district shall
16-21    submit the bonds and the record of proceedings of the district
16-22    relating to authorization of the bonds to the attorney general for
16-23    approval as provided by Chapter 1202, Government Code.
16-24          Sec. 376.471.  ASSESSMENTS.  (a)  The board may impose and
16-25    collect an assessment for any purpose authorized by this
16-26    subchapter.
16-27          (b)  Assessments, reassessments, or assessments resulting
 17-1    from an addition to or correction of the assessment roll by the
 17-2    district, penalties and interest on an assessment or reassessment,
 17-3    expenses of collection, and reasonable attorney's fees incurred by
 17-4    the district:
 17-5                (1)  are a first and prior lien against the property
 17-6    assessed;
 17-7                (2)  are superior to any other lien or claim other than
 17-8    a lien or claim for county, school district, or municipal ad
 17-9    valorem taxes; and
17-10                (3)  are the personal liability of and charge against
17-11    the owners of the property even if the owners are not named in the
17-12    assessment proceedings.
17-13          (c)  The lien is effective from the date of the resolution of
17-14    the board levying the assessment until the assessment is paid.  The
17-15    board may enforce the lien in the same manner that the board may
17-16    enforce an ad valorem tax lien against real property.
17-17          Sec. 376.472.  PROPERTY EXEMPTED FROM TAX, FEE, OR
17-18    ASSESSMENT.  (a)  The district may not impose a tax, impact fee, or
17-19    assessment on a residential property or condominium.
17-20          (b)  The district may not impose an impact fee or assessment
17-21    on the property, equipment, or facilities of a utility.  In this
17-22    subsection, "utility" means a person that provides to the public
17-23    cable television, gas, light, power, telephone, sewerage, or water
17-24    service.
17-25          Sec. 376.473.  ELECTIONS.  (a)  In addition to the elections
17-26    the district must hold under Subchapter L, Chapter 375, the
17-27    district shall hold an election in the manner provided by that
 18-1    subchapter to obtain voter approval before the district imposes a
 18-2    maintenance tax or issues bonds payable from ad valorem taxes or
 18-3    assessments.
 18-4          (b)  The board may submit multiple purposes in a single
 18-5    proposition at an election.
 18-6          Sec. 376.474.  IMPACT FEES.  The district may impose an
 18-7    impact fee for an authorized purpose as provided by Subchapter G,
 18-8    Chapter 375.
 18-9          Sec. 376.475.  MAINTENANCE TAX.  (a)  If authorized at an
18-10    election held in accordance with Section 376.473, the district may
18-11    impose and collect an annual ad valorem tax on taxable property in
18-12    the district for the maintenance and operation of the district and
18-13    the improvements constructed or acquired by the district or for the
18-14    provision of services.
18-15          (b)  The board shall determine the tax rate.
18-16          Sec. 376.476.  DISSOLUTION OF DISTRICT.  The district may be
18-17    dissolved as provided by Subchapter M, Chapter 375.  If the
18-18    district has debt and is dissolved, the district shall remain in
18-19    existence solely for the limited purpose of discharging its bonds
18-20    or other obligations according to their terms.
18-21          Sec. 376.477.  CONTRACTS.  (a)  To protect the public
18-22    interest, the district may contract with the municipality or the
18-23    county for the municipality or county to provide law enforcement
18-24    services in the district for a fee.
18-25          (b)  The municipality, the county, or another political
18-26    subdivision of the state, without further authorization, may
18-27    contract with the district to implement a project of the district
 19-1    or assist the district in providing the services authorized under
 19-2    this subchapter.  A contract under this subsection may:
 19-3                (1)  be for a period on which the parties agree;
 19-4                (2)  include terms on which the parties agree;
 19-5                (3)  be payable from taxes or any other sources of
 19-6    revenue that may be available for that purpose; or
 19-7                (4)  provide that taxes or other revenue collected at a
 19-8    district project or from a person using or purchasing a commodity
 19-9    or service at a district project may be paid or rebated to the
19-10    district under the terms of the contract.
19-11          (c)  The district may enter into a contract, lease, or other
19-12    agreement with or make or accept grants and loans to or from:
19-13                (1)  the United States;
19-14                (2)  the state or a state agency;
19-15                (3)  a county, a municipality, or another political
19-16    subdivision of the state;
19-17                (4)  a public or private corporation, including a
19-18    nonprofit corporation created by the board under this subchapter;
19-19    or
19-20                (5)  any other person.
19-21          (d)  The district may perform all acts necessary for the full
19-22    exercise of the powers vested in the district on terms and for the
19-23    period the board determines advisable.
19-24          Sec. 376.478.  COMPETITIVE BIDDING UNIT.  Section 375.221
19-25    does not apply to the district unless the contract is for more than
19-26    $25,000.
19-27          Sec. 376.479.  ANNEXATION.  The district may:
 20-1                (1)  annex territory as provided by Subchapter C,
 20-2    Chapter 375; and
 20-3                (2)  annex territory located inside the boundaries of a
 20-4    reinvestment zone created by the municipality under Chapter 311,
 20-5    Tax Code, if the governing body of the municipality consents to the
 20-6    annexation.
 20-7          Sec. 376.480.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
 20-8    AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
 20-9    make an agreement with or accept a donation, grant, or loan from
20-10    any person.
20-11          (b)  The implementation of a project is a governmental
20-12    function or service for the purposes of Chapter 791, Government
20-13    Code.
20-14          (c)  To protect the public interest, the district may
20-15    contract with the municipality or the county for the municipality
20-16    or county to provide law enforcement services in the district for a
20-17    fee.
20-18          SECTION 2.  The legislature finds that:
20-19                (1)  proper and legal notice of the intention to
20-20    introduce this Act, setting forth the general substance of this
20-21    Act, has been published as provided by law, and the notice and a
20-22    copy of this Act have been furnished to all persons, agencies,
20-23    officials, or entities to which they are required to be furnished
20-24    by the constitution and laws of this state, including the governor,
20-25    who has submitted the notice and Act to the Texas Natural Resource
20-26    Conservation Commission;
20-27                (2)  the Texas Natural Resource Conservation Commission
 21-1    has filed its recommendations relating to this Act with the
 21-2    governor, lieutenant governor, and speaker of the house of
 21-3    representatives within the required time;
 21-4                (3)  the general law relating to consent by political
 21-5    subdivisions to the creation of districts with conservation,
 21-6    reclamation, and road powers and the inclusion of land in those
 21-7    districts has been complied with; and
 21-8                (4)  all requirements of the constitution and laws of
 21-9    this state and the rules and procedures of the legislature with
21-10    respect to the notice, introduction, and passage of this Act have
21-11    been fulfilled and accomplished.
21-12          SECTION 3.  Notwithstanding Section 376.459, Local Government
21-13    Code, as added by this Act:
21-14                (1)  the initial board of directors of the Greater
21-15    Southeast Management District consists of:
21-16          Pos. No.                 Name of Director
21-17             1                    __________________
21-18             2                    __________________
21-19             3                    __________________
21-20             4                    __________________
21-21             5                    __________________
21-22             6                    __________________
21-23             7                    __________________
21-24             8                    __________________
21-25             9                    __________________
21-26             10                   __________________
21-27             11                   __________________
 22-1             12                   __________________
 22-2             13                   __________________
 22-3             14                   __________________
 22-4             15                   __________________
 22-5             16                   __________________
 22-6             17                   __________________; and
 22-7                (2)  of the initial board, members in positions 1-9
 22-8    serve terms that expire June 1, 2005, and members in positions
 22-9    10-17 serve terms that expire June 1, 2003.
22-10          SECTION 4.  This Act takes effect immediately if it receives
22-11    a vote of two-thirds of all the members elected to each house, as
22-12    provided by Section 39, Article III, Texas Constitution.  If this
22-13    Act does not receive the vote necessary for immediate effect, this
22-14    Act takes effect September 1, 2001.