1-1     By:  Coleman (Senate Sponsor - Ellis)                 H.B. No. 3692
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the creation of the Greater Southeast Management
1-10     District; providing authority to impose a tax and issue bonds.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-13     adding Subchapter K to read as follows:
1-14            SUBCHAPTER K.  GREATER SOUTHEAST MANAGEMENT DISTRICT
1-15           Sec. 376.451.  CREATION OF DISTRICT.  (a)  A special district
1-16     to be known as the "Greater Southeast Management District" exists
1-17     as a political subdivision of the state.
1-18           (b)  The name of the district may be changed by resolution of
1-19     the board.
1-20           (c)  The creation of the district is essential to accomplish
1-21     the purposes of Section 52, Article III, Section 59, Article XVI,
1-22     and Section 52-a, Article III, Texas Constitution, and other public
1-23     purposes stated in this subchapter.
1-24           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-25     the district is necessary to promote, develop, encourage, and
1-26     maintain employment, commerce, transportation, housing, tourism,
1-27     recreation, arts, entertainment, economic development, safety, and
1-28     the public welfare in the southeast area of the city of Houston.
1-29           (b)  The creation of the district and this legislation are
1-30     not to be interpreted to relieve the county or the municipality
1-31     from providing the level of services, as of the effective date of
1-32     this subchapter, to the area in the district or to release the
1-33     county or the municipality from the obligations each entity has to
1-34     provide services to that area.  The district is created to
1-35     supplement and not supplant the municipal or county services
1-36     provided in the area in the district.
1-37           (c)  By creating the district and in authorizing the
1-38     municipality, county, and other political subdivisions to contract
1-39     with the district, the legislature has established a program to
1-40     accomplish the public purposes set out in Section 52-a, Article
1-41     III, Texas Constitution.
1-42           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-43                 (1)  "Board" means the board of directors of the
1-44     district.
1-45                 (2)  "County" means Harris County, Texas.
1-46                 (3)  "District" means the Greater Southeast Management
1-47     District.
1-48                 (4)  "Municipality" means the City of Houston, Texas.
1-49           Sec. 376.454.  BOUNDARIES. The district includes all the
1-50     territory contained in the following described area:
1-51     Being 30.31 square miles (19,400 acres) more or less, out of the
1-52     Jos Gambel Abstract 309, G.P. Foster Abstract 273, Jos Christy
1-53     Abstract 212, Holman Abstract 323, H. Tierwester Abstract 75, Luke
1-54     Moore Abstract 51, J. Durkee Abstract 1013, WCRR Abstract 936, H.
1-55     Tierwester Abstract 760, Louis Gladitch Abstract 304, D.W.C. Harris
1-56     Abstract 325, Pleasant W. Rose Abstract 635, and Chaungey Goodrich
1-57     Abstract 302.
1-58     All Located in Harris County, Texas, being more particular
1-59     described by metes and bounds as follow:
1-60     BEGINNING at a point being the point of intersection of the
1-61     centerline of the right-of-way of interstate 45 and the centerline
1-62     of the intersection of HB & TRR;
1-63     THENCE, in a south westerly direction along the centerline of HB &
1-64     TRR to the intersection or Wheeler Street;
 2-1     THENCE, continuing in a southeasterly direction along the
 2-2     centerline of HB & TRR, and to the intersection of the T & no RR
 2-3     (Greater Houston & S.A.R.R.);
 2-4     THENCE, east along T & No RR to the rear lot lines of all business
 2-5     facing the West Property line on South Wayside Street;
 2-6     THENCE, south parallel more or less to South Wayside to the South
 2-7     Loop East passing its South property line to the rear property line
 2-8     of all lots fronting on the South Loop East;
 2-9     THENCE, west parallel to the South Loop East more or less along the
2-10     rear lines of all property fronting on the south property line of
2-11     the South Loop East passing Myakawa Road to the West line of Martin
2-12     Luther King Street;
2-13     THENCE, along the rear property line of the lots fronting the West
2-14     R.O.W. line of Martin Luther King Street to the north line of
2-15     Browncroft Street;
2-16     THENCE west along the north line of Browncroft St. passing USA Lane
2-17     to the south continuing in a generally west direction to the west
2-18     line of Milart Street;
2-19     THENCE South along the west line of Milart Street to the southeast
2-20     corner of tract 23 of the WCRR Co. Survey A 936;
2-21     THENCE, west along the southerly property line of Tract 23 and 14B
2-22     of the WCRR Co. Survey A 936 to the east line of Schroeder Street;
2-23     THENCE northeasterly direction along the easterly line of Schoeder
2-24     Road to its intersection with the southerly line on Griggs Road;
2-25     THENCE in a northeasterly direction along the southerly line of
2-26     Griggs Road to the intersection of the rear of the rear property
2-27     line of the lot facing Grace Lane;
2-28     THENCE in a southwesterly direction along the rear property line of
2-29     the lots facing Grace lane to the intersection of the rear property
2-30     line projection of all lots fronting, more or less the north line
2-31     of Kingsbury Lane;
2-32     THENCE westerly along the rear property line projection of all lots
2-33     fronting the north line of Kingsbury Lane to the east right-of-way
2-34     line of Calhoun Road;
2-35     THENCE northeasterly along the easterly line of Calhoun Road to the
2-36     rear property line projection of the lots fronting on Griggs Road;
2-37     THENCE, west along the rear property line of all the lots fronting
2-38     on Griggs Road to the east line of Cullen Road;
2-39     THENCE, in a southerly direction along the east line of Cullen Road
2-40     to the southline projection of Dixie Street;
2-41     THENCE, in a westerly direction along the south line of Dixie
2-42     Street, crossing St. Augustine Street, to the rear line of the lot
2-43     facing St. Augustine Street;
2-44     THENCE north to the rear lot line of the lots that front on Old
2-45     Spanish Trail;
2-46     THENCE west along the rear lot line of the lots that front on Old
2-47     Spanish Trail to the rear property line of the lot that fronts on
2-48     Scottcrest Street;
2-49     THENCE north to the south right-of-way line of Old Spanish Trail;
2-50     THENCE west to the intersection of the east line of Scott Crest
2-51     Street;
2-52     THENCE in a southwesterly direction to the rear property line of
2-53     all lots that front Zephyr Street;
2-54     THENCE in a westerly direction along the rear property line of the
2-55     lots that front Zephyr Street to west right-of-way line of
2-56     LaSallette Drive;
2-57     THENCE northwesterly along the west right-of-way line of LaSalette
2-58     Drive to the intersection of the south right-of-way line of Old
2-59     Spanish Trail;
2-60     THENCE southwesterly along the south right-of-way line of Old
2-61     Spanish Trail to rear property line of the corner lot fronting on
2-62     Tierwester Street;
2-63     THENCE south along the rear property line of the corner lot
2-64     fronting on Tierwester Street to the southeast corner of this lot;
2-65     THENCE west along the south line of the corner lot fronting on
2-66     Tierwester Street to the east right-of-way line of Tiewester
2-67     Street;
2-68     THENCE southerly along the east right-of-way line of Tierwester
2-69     Street to the south property line of Zephyr Street;
 3-1     THENCE west crossing Tierwester Street, where the street names
 3-2     changes from Zephyr Street to Southland Avenue and along the south
 3-3     line of Southland Avenue to the intersection of the south
 3-4     right-of-way line of Old Spanish Trail;
 3-5     THENCE in a southwesterly direction along the south line of Old
 3-6     Spanish Trail to the east line of Allegheny Street;
 3-7     THENCE south along the east right-of-way line of Allegheny Street
 3-8     the southeast corner of the first corner lot;
 3-9     THENCE east along the south line of the corner lot to the rear
3-10     property line;
3-11     THENCE south along the rear property line for one lot long to the
3-12     southeast corner of this lot fronting on the east line of
3-13     Allegeheny Street;
3-14     THENCE, west to the east property line of Alleghaney Street;
3-15     THENCE in a southwesterly direction along the east right-of-way
3-16     line of Alleghaney Street to the intersection of the north
3-17     right-of-way line of Yellowstone Street;
3-18     THENCE in a south easterly direction along the north right-of-way
3-19     line of Yellowstone Street to the east right-of-way line of
3-20     Peerless Street;
3-21     THENCE in a southerly direction along the east right-of-way line of
3-22     Peerless Street to the intersection of the south right-of-way line
3-23     of Corder Street;
3-24     THENCE, in a northwesterly direction along the southerly line of
3-25     Corder Street crossing State Highway 288 in a straight line along
3-26     the centerline of Nicholas Street to its intersection with the
3-27     westerly line of Almeda Rd.;
3-28     THENCE, in a northerly direction along Almeda Road to the
3-29     intersection of Old Spanish Trail;
3-30     THENCE, in a westerly direction along Old Spanish Trail to the
3-31     intersection of Fannin;
3-32     THENCE, along the centerline of Fannin Street in a northwesterly
3-33     direction to the intersection of Holcombe Street;
3-34     THENCE, west along the centerline of Holcombe Street to the
3-35     intersection of South Main Street;
3-36     THENCE, in a northeasterly direction along the centerline of South
3-37     Main to Palm Street, and to the intersection with the boundaries of
3-38     the Midtown TIRZ and Management District;
3-39     THENCE, southeasterly with the Southerly R.O.W. of Palm Street to
3-40     the easterly R.O.W. line of Fannin Street;
3-41     THENCE, northeasterly, with the Easterly  R.O.W. line of Fannin
3-42     Street to the northerly R.O.W. line of US 59 South;
3-43     THENCE, in an easterly, direction with curve to the left and in a
3-44     northerly direction along the northerly R.O.W. line of US 59 South,
3-45     to the intersection of the westerly R.O.W. line of State Highway
3-46     288 which is also being US 59 North and crossing Interstate Highway
3-47     45 (Gulf Freeway) to the Northerly R.O.W. line thereof; said point
3-48     also being the Northwest boundary corner of the Midtown TIRZ &
3-49     Management District;
3-50     THENCE, southeasterly direction along the north right-of-way line
3-51     of Interstate Highway 45 and to the POINT OF BEGINNING, containing
3-52     19,400 acres more or less, SAVE AND EXCEPT all tracts or parcels of
3-53     land, rights-of-way, facilities, and improvements owned by an
3-54     electric utility or a power generation company as defined by
3-55     Section 31.002, Utilities Code, or a gas utility as defined by
3-56     Sections 101.003 and 121.001, Utilities Code.
3-57           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
3-58     boundaries and field notes of the district form a closure.  If a
3-59     mistake is made in the field notes or in copying the field notes in
3-60     the legislative process, the mistake does not in any way affect
3-61     the:
3-62                 (1)  organization, existence, and validity of the
3-63     district;
3-64                 (2)  right of the district to issue any type of bonds
3-65     or refunding bonds for the purposes for which the district is
3-66     created or to pay the principal of and interest on the bonds;
3-67                 (3)  right of the district to impose and collect
3-68     assessments or taxes; or
3-69                 (4)  legality or operation of the district or its
 4-1     governing body.
 4-2           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
 4-3     All the land and other property included in the district will be
 4-4     benefited by the improvements and services to be provided by the
 4-5     district under powers conferred by Section 52, Article III, Section
 4-6     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
 4-7     and other powers granted under this subchapter, and the district is
 4-8     created to serve a public use and benefit.
 4-9           (b)  The creation of the district is in the public interest
4-10     and is essential to:
4-11                 (1)  further the public purposes of the development and
4-12     diversification of the economy of the state; and
4-13                 (2)  eliminate unemployment and underemployment and
4-14     develop or expand transportation and commerce.
4-15           (c)  The district will:
4-16                 (1)  promote the health, safety, and general welfare of
4-17     residents, employers, employees, visitors, consumers in the
4-18     district, and the general public;
4-19                 (2)  provide money to preserve, maintain, and enhance
4-20     the economic health and vitality of the district as a community and
4-21     business center; and
4-22                 (3)  further promote the health, safety, welfare, and
4-23     enjoyment of the public by providing pedestrian ways and by
4-24     landscaping and developing certain areas in the district, which are
4-25     necessary for the restoration, preservation, and enhancement of
4-26     scenic and aesthetic beauty.
4-27           (d)  Pedestrian ways along or across a street, whether at
4-28     grade or above or below the surface, and street lighting, street
4-29     landscaping, and street art objects are parts of and necessary
4-30     components of a street and are considered to be a street or road
4-31     improvement.
4-32           (e)  The district will not act as the agent or
4-33     instrumentality of any private interest even though many private
4-34     interests will be benefited by the district, as will the general
4-35     public.
4-36           Sec. 376.457.  APPLICATION OF OTHER LAW.  Except as otherwise
4-37     provided by this subchapter, Chapter 375 applies to the district
4-38     and its governing body and employees.
4-39           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
4-40     shall be liberally construed in conformity with the findings and
4-41     purposes stated in this subchapter.
4-42           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
4-43     district is governed by a board of 17 directors who serve staggered
4-44     terms of four years, with nine members' terms expiring June 1 of an
4-45     odd-numbered year and eight members' terms expiring June 1 of the
4-46     following odd-numbered year.  The board may increase or decrease
4-47     the number of directors on the board by resolution, provided that
4-48     it is in the best interest of the district to do so and that the
4-49     board consists of not fewer than 9 and not more than 30 directors. 
4-50           (b)  Subchapter D, Chapter 375, applies to the board to the
4-51     extent that subchapter does not conflict with this subchapter.  The
4-52     imposition of a tax, assessment, or impact fee requires a vote of a
4-53     majority of the directors serving.  Directors may vote on any
4-54     matter authorized by Subchapter D, Chapter 375, and action may be
4-55     taken by the board only if it is approved in the manner prescribed
4-56     by Subchapter D, Chapter 375.
4-57           Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor
4-58     and members of the governing body of the municipality shall appoint
4-59     directors from persons recommended by the board who meet the
4-60     qualifications of Subchapter D, Chapter 375.  A vacancy in the
4-61     office of director because of the death, resignation, or removal of
4-62     a director shall be filled by the remaining members of the board by
4-63     appointing a qualified person for the unexpired term.
4-64           Sec. 376.461.  POWERS OF DISTRICT.  The district has:
4-65                 (1)  all powers necessary or required to accomplish the
4-66     purposes for which the district was created;
4-67                 (2)  the rights, powers, privileges, authority, and
4-68     functions of a district created under Chapter 375;
4-69                 (3)  the powers given to a corporation under Section
 5-1     4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
 5-2     Texas Civil Statutes), and the power to own, operate, acquire,
 5-3     construct, lease, improve, and maintain projects;
 5-4                 (4)  the power to impose ad valorem taxes, assessments,
 5-5     or impact fees in accordance with Chapter 375 to provide
 5-6     improvements and services for a project or activity the district is
 5-7     authorized to acquire, construct, improve, or provide under this
 5-8     subchapter;
 5-9                 (5)  the power to correct, add to, or delete
5-10     assessments from its assessment rolls after notice and hearing as
5-11     provided by Subchapter F, Chapter 375; and
5-12                 (6)  the powers given to a housing finance corporation
5-13     created under Chapter 394 to provide housing or residential
5-14     development projects in the district.
5-15           Sec. 376.462.  EMINENT DOMAIN.  The district may not exercise
5-16     the power of eminent domain.
5-17           Sec. 376.463.  EX OFFICIO BOARD MEMBERS.  (a)  The following
5-18     persons shall serve as nonvoting ex officio directors:
5-19                 (1)  the director of the following departments of the
5-20     municipality:
5-21                       (A)  parks and recreation;
5-22                       (B)  planning and development;
5-23                       (C)  public works; and
5-24                       (D)  civic center;
5-25                 (2)  the municipality's chief of police;
5-26                 (3)  the general manager of the Metropolitan Transit
5-27     Authority; and
5-28                 (4)  the presidents of any institutions of higher
5-29     learning located in the district.
5-30           (b)  If a department described by Subsection (a) is
5-31     consolidated, renamed, or changed, the board may appoint a director
5-32     of the consolidated, renamed, or changed department as a nonvoting
5-33     ex officio board member.  If a department described by Subsection
5-34     (a) is abolished, the board may appoint a representative of another
5-35     department of the municipality that performs duties comparable to
5-36     those performed by the abolished department.
5-37           (c)  The board may appoint the presiding officer of a
5-38     nonprofit corporation that is actively involved in activities in
5-39     the municipality's midtown area to serve as a nonvoting ex officio
5-40     director.
5-41           Sec. 376.464.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
5-42     (a)  Except as provided in this section:
5-43                 (1)  a director may participate in all board votes and
5-44     decisions; and
5-45                 (2)  Chapter 171 governs conflicts of interest for
5-46     board members.
5-47           (b)  Section 171.004 does not apply to the district.  A
5-48     director who has a substantial interest in a business or charitable
5-49     entity that will receive a pecuniary benefit from a board action
5-50     shall file a one-time affidavit declaring the interest.  An
5-51     additional affidavit is not required if the director's interest
5-52     changes.  After the affidavit is filed with the board secretary,
5-53     the director may participate in a discussion or vote on that action
5-54     if:
5-55                 (1)  a majority of the directors have a similar
5-56     interest in the same entity; or
5-57                 (2)  all other similar business or charitable entities
5-58     in the district will receive a similar pecuniary benefit.
5-59           (c)  A director who is also an officer or employee of a
5-60     public entity may not participate in the discussion of or vote on a
5-61     matter regarding a contract with that same public entity.
5-62           (d)  For purposes of this section, a director has a
5-63     substantial interest in a charitable entity in the same manner that
5-64     a person would have a substantial interest in a business entity
5-65     under Section 171.002.
5-66           Sec. 376.465.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
5-67     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
5-68     conferred by this subchapter, requires a relocation, adjustment,
5-69     raising, lowering, rerouting, or changing of the grade or the
 6-1     construction of any of the following items, the district must take
 6-2     that required action at the sole expense of the district:
 6-3                 (1)  a street, alley, highway, overpass, underpass,
 6-4     road, railroad track, bridge, facility, or other property;
 6-5                 (2)  an electric line, conduit, facility, or other
 6-6     property;
 6-7                 (3)  a telephone or telegraph line, conduit, facility,
 6-8     or other property;
 6-9                 (4)  a gas transmission or distribution pipe, pipeline,
6-10     main, facility, or other property;
6-11                 (5)  a water, sanitary sewer, or storm sewer pipe,
6-12     pipeline, main, facility, or other property;
6-13                 (6)  a cable television line, cable, conduit, facility,
6-14     or other property; or
6-15                 (7)  another pipeline, facility, or other property
6-16     relating to the pipeline.
6-17           (b)  The district shall bear damages that are suffered by
6-18     owners of the facility or other property.
6-19           Sec. 376.466.  RELATION TO OTHER LAW.  If any provision of
6-20     general law, including a law referenced in this subchapter, is in
6-21     conflict with or is inconsistent with this subchapter, this
6-22     subchapter prevails.  Any law referenced in this subchapter that is
6-23     not in conflict or inconsistent with this subchapter is adopted and
6-24     incorporated by reference.
6-25           Sec. 376.467.  REQUIREMENTS FOR FINANCING SERVICES AND
6-26     IMPROVEMENTS.  The board may not finance services and improvement
6-27     projects under this subchapter unless a written petition requesting
6-28     those improvements or services has been filed with the board.  The
6-29     petition must be signed by:
6-30                 (1)  the owners of a majority of the assessed value of
6-31     real property in the district as determined by the most recent
6-32     certified county property tax rolls; or
6-33                 (2)  at least 50 persons who own land in the district,
6-34     if there are more than 50 persons who own property in the district
6-35     as determined by the most recent certified county property tax
6-36     rolls.
6-37           Sec. 376.468.  NONPROFIT CORPORATION.  (a)  The board by
6-38     resolution may authorize the creation of a nonprofit corporation to
6-39     assist and act on behalf of the district in implementing a project
6-40     or providing a service authorized by this subchapter.
6-41           (b)  The board shall appoint the board of directors of a
6-42     nonprofit corporation created under this section.  The board of
6-43     directors of  the nonprofit corporation shall serve in the same
6-44     manner as, for the same term as, and on the conditions of the board
6-45     of directors of a local government corporation created under
6-46     Chapter 431, Transportation Code.
6-47           (c)  A nonprofit corporation created under this section has
6-48     the powers of and is considered for purposes of this subchapter to
6-49     be a local government corporation created under Chapter 431,
6-50     Transportation Code.
6-51           (d)  A nonprofit corporation created under this section may
6-52     implement any project and provide any services authorized by this
6-53     subchapter.
6-54           Sec. 376.469.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
6-55     board by resolution shall establish the number of directors'
6-56     signatures and the procedure required for a disbursement or
6-57     transfer of the district's money.
6-58           Sec. 376.470.  BONDS.  (a)  The district may issue bonds or
6-59     other obligations payable in whole or in part from ad valorem
6-60     taxes, assessments, impact fees, revenues, grants, or other money
6-61     of the district, or any combination of those sources of money, to
6-62     pay for any authorized purpose of the district.
6-63           (b)  Bonds or other obligations of the district may be issued
6-64     in the form of bonds, notes, certificates of participation,
6-65     including other instruments evidencing a proportionate interest in
6-66     payments to be made by the district, or other obligations that are
6-67     issued in the exercise of the district's borrowing power and may be
6-68     issued in bearer or registered form or not represented by an
6-69     instrument but the transfer of which is registered on books
 7-1     maintained by or on behalf of the district.  The board may impose
 7-2     and collect an assessment under Subchapter F, Chapter 375, for any
 7-3     purpose authorized by this subchapter or by Chapter 375.
 7-4           (c)  Except as provided by Subsection (d), the district must
 7-5     obtain the municipality's approval of:
 7-6                 (1)  the issuance of bonds for an improvement project;
 7-7                 (2)  the plans and specifications of the improvement
 7-8     project to be financed by the bonds; and
 7-9                 (3)  the plans and specifications of a district
7-10     improvement project related to:
7-11                       (A)  the use of land owned by the municipality;
7-12                       (B)  an easement granted by the municipality; or
7-13                       (C)  a right-of-way of a street, road, or
7-14     highway.
7-15           (d)  If the district obtains the municipality's approval of a
7-16     capital improvements budget for a specified period not to exceed
7-17     five years, the district may finance the capital improvements and
7-18     issue bonds specified in the budget without further municipal
7-19     approval.
7-20           (e)  Before the district issues bonds, the district shall
7-21     submit the bonds and the record of proceedings of the district
7-22     relating to authorization of the bonds to the attorney general for
7-23     approval as provided by Chapter 1202, Government Code.
7-24           Sec. 376.471.  ASSESSMENTS.  (a)  The board may impose and
7-25     collect an assessment for any purpose authorized by this
7-26     subchapter.
7-27           (b)  Assessments, reassessments, or assessments resulting
7-28     from an addition to or correction of the assessment roll by the
7-29     district, penalties and interest on an assessment or reassessment,
7-30     expenses of collection, and reasonable attorney's fees incurred by
7-31     the district:
7-32                 (1)  are a first and prior lien against the property
7-33     assessed;
7-34                 (2)  are superior to any other lien or claim other than
7-35     a lien or claim for county, school district, or municipal ad
7-36     valorem taxes; and
7-37                 (3)  are the personal liability of and charge against
7-38     the owners of the property even if the owners are not named in the
7-39     assessment proceedings.
7-40           (c)  The lien is effective from the date of the resolution of
7-41     the board levying the assessment until the assessment is paid.  The
7-42     board may enforce the lien in the same manner that the board may
7-43     enforce an ad valorem tax lien against real property.
7-44           Sec. 376.472.  PROPERTY EXEMPTED FROM TAX, FEE, OR
7-45     ASSESSMENT.  (a)  The district may not impose a tax, impact fee, or
7-46     assessment on a residential property or condominium.
7-47           (b)  The district may not impose an impact fee or assessment
7-48     on the property, equipment, or facilities of a utility.  In this
7-49     subsection, "utility" means a person that provides to the public
7-50     cable television, gas, light, power, telephone, sewerage, or water
7-51     service.
7-52           Sec. 376.473.  ELECTIONS.  (a)  In addition to the elections
7-53     the district must hold under Subchapter L, Chapter 375, the
7-54     district shall hold an election in the manner provided by that
7-55     subchapter to obtain voter approval before the district imposes a
7-56     maintenance tax or issues bonds payable from ad valorem taxes or
7-57     assessments.
7-58           (b)  The board may submit multiple purposes in a single
7-59     proposition at an election.
7-60           Sec. 376.474.  IMPACT FEES.  The district may impose an
7-61     impact fee for an authorized purpose as provided by Subchapter G,
7-62     Chapter 375.
7-63           Sec. 376.475.  MAINTENANCE TAX.  (a)  If authorized at an
7-64     election held in accordance with Section 376.473, the district may
7-65     impose and collect an annual ad valorem tax on taxable property in
7-66     the district for the maintenance and operation of the district and
7-67     the improvements constructed or acquired by the district or for the
7-68     provision of services.
7-69           (b)  The board shall determine the tax rate.
 8-1           Sec. 376.476.  DISSOLUTION OF DISTRICT.  The district may be
 8-2     dissolved as provided by Subchapter M, Chapter 375.  If the
 8-3     district has debt and is dissolved, the district shall remain in
 8-4     existence solely for the limited purpose of discharging its bonds
 8-5     or other obligations according to their terms.
 8-6           Sec. 376.477.  CONTRACTS.  (a)  To protect the public
 8-7     interest, the district may contract with the municipality or the
 8-8     county for the municipality or county to provide law enforcement
 8-9     services in the district for a fee.
8-10           (b)  The municipality, the county, or another political
8-11     subdivision of the state, without further authorization, may
8-12     contract with the district to implement a project of the district
8-13     or assist the district in providing the services authorized under
8-14     this subchapter.  A contract under this subsection may:
8-15                 (1)  be for a period on which the parties agree;
8-16                 (2)  include terms on which the parties agree;
8-17                 (3)  be payable from taxes or any other sources of
8-18     revenue that may be available for that purpose; or
8-19                 (4)  provide that taxes or other revenue collected at a
8-20     district project or from a person using or purchasing a commodity
8-21     or service at a district project may be paid or rebated to the
8-22     district under the terms of the contract.
8-23           (c)  The district may enter into a contract, lease, or other
8-24     agreement with or make or accept grants and loans to or from:
8-25                 (1)  the United States;
8-26                 (2)  the state or a state agency;
8-27                 (3)  a county, a municipality, or another political
8-28     subdivision of the state;
8-29                 (4)  a public or private corporation, including a
8-30     nonprofit corporation created by the board under this subchapter;
8-31     or
8-32                 (5)  any other person.
8-33           (d)  The district may perform all acts necessary for the full
8-34     exercise of the powers vested in the district on terms and for the
8-35     period the board determines advisable.
8-36           Sec. 376.478.  COMPETITIVE BIDDING UNIT.  Section 375.221
8-37     does not apply to the district unless the contract is for more than
8-38     $25,000.
8-39           Sec. 376.479.  ANNEXATION.  The district may:
8-40                 (1)  annex territory as provided by Subchapter C,
8-41     Chapter 375; and
8-42                 (2)  annex territory located inside the boundaries of a
8-43     reinvestment zone created by the municipality under Chapter 311,
8-44     Tax Code, if the governing body of the municipality consents to the
8-45     annexation.
8-46           Sec. 376.480.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
8-47     AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
8-48     make an agreement with or accept a donation, grant, or loan from
8-49     any person.
8-50           (b)  The implementation of a project is a governmental
8-51     function or service for the purposes of Chapter 791, Government
8-52     Code.
8-53           (c)  To protect the public interest, the district may
8-54     contract with the municipality or the county for the municipality
8-55     or county to provide law enforcement services in the district for a
8-56     fee.
8-57           SECTION 2.  The legislature finds that:
8-58                 (1)  proper and legal notice of the intention to
8-59     introduce this Act, setting forth the general substance of this
8-60     Act, has been published as provided by law, and the notice and a
8-61     copy of this Act have been furnished to all persons, agencies,
8-62     officials, or entities to which they are required to be furnished
8-63     by the constitution and laws of this state, including the governor,
8-64     who has submitted the notice and Act to the Texas Natural Resource
8-65     Conservation Commission;
8-66                 (2)  the Texas Natural Resource Conservation Commission
8-67     has filed its recommendations relating to this Act with the
8-68     governor, lieutenant governor, and speaker of the house of
8-69     representatives within the required time;
 9-1                 (3)  the general law relating to consent by political
 9-2     subdivisions to the creation of districts with conservation,
 9-3     reclamation, and road powers and the inclusion of land in those
 9-4     districts has been complied with; and
 9-5                 (4)  all requirements of the constitution and laws of
 9-6     this state and the rules and procedures of the legislature with
 9-7     respect to the notice, introduction, and passage of this Act have
 9-8     been fulfilled and accomplished.
 9-9           SECTION 3.  Notwithstanding Section 376.459, Local Government
9-10     Code, as added by this Act:
9-11                 (1)  the initial board of directors of the Greater
9-12     Southeast Management District consists of:
9-13           Pos. No.                 Name of Director
9-14              1                    __________________
9-15              2                    __________________
9-16              3                    __________________
9-17              4                    __________________
9-18              5                    __________________
9-19              6                    __________________
9-20              7                    __________________
9-21              8                    __________________
9-22              9                    __________________
9-23              10                   __________________
9-24              11                   __________________
9-25              12                   __________________
9-26              13                   __________________
9-27              14                   __________________
9-28              15                   __________________
9-29              16                   __________________
9-30              17                   __________________; and
9-31                 (2)  of the initial board, members in positions 1-9
9-32     serve terms that expire June 1, 2005, and members in positions
9-33     10-17 serve terms that expire June 1, 2003.
9-34           SECTION 4.  This Act takes effect immediately if it receives
9-35     a vote of two-thirds of all the members elected to each house, as
9-36     provided by Section 39, Article III, Texas Constitution.  If this
9-37     Act does not receive the vote necessary for immediate effect, this
9-38     Act takes effect September 1, 2001.
9-39                                  * * * * *