By:  Lindsay                                          S.B. No. 1226
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Energy Corridor 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.  ENERGY CORRIDOR MANAGEMENT DISTRICT
 1-8           Sec. 376.451.  CREATION OF DISTRICT.  (a)  The Energy
 1-9     Corridor Management District is created as a special district under
1-10     Section 59, Article XVI, Texas Constitution.
1-11           (b)  The board by resolution may change the district's name.
1-12           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-13     the district is necessary to promote, develop, encourage, and
1-14     maintain employment, commerce, transportation, housing, tourism,
1-15     recreation, arts, entertainment, economic development, safety, and
1-16     the public welfare in the area of the district.
1-17           (b)  The creation of the district and this legislation are
1-18     not to be interpreted to relieve the county or the municipality
1-19     from providing the level of services, as of the effective date of
1-20     this subchapter, each entity has to provide to the area in the
1-21     district.  The district is created to supplement and not supplant
1-22     the county or municipal services provided in the area in the
1-23     district.
1-24           (c)  The creation of the district is essential to accomplish
1-25     the purposes of Sections 52 and 52-a, Article III, and Section 59,
 2-1     Article XVI, Texas Constitution, and other public purposes stated
 2-2     in this subchapter.
 2-3           Sec. 376.453.  DEFINITIONS.  In this subchapter:
 2-4                 (1)  "Board" means the board of directors of the
 2-5     district.
 2-6                 (2)  "County" means Harris County, Texas.
 2-7                 (3)  "District" means the Energy Corridor Management
 2-8     District.
 2-9                 (4)  "Municipality" means the City of Houston, Texas.
2-10           Sec. 376.454.  BOUNDARIES.  The district includes all the
2-11     territory contained in the following described area:
2-12           BEGINNING at a point at the intersection of the south
2-13     right-of-way line of Interstate Highway 10 and the east
2-14     right-of-way line of Tully Road;
2-15           THENCE in a southerly direction with the east right-of-way
2-16     line of said Tully Road to a line approximately 267 feet south of
2-17     the south right-of-way line of St. Mary's Street;
2-18           THENCE in a westerly direction with said line to the east
2-19     right-of-way line of Dairy Ashford Road;
2-20           THENCE in a southerly direction with the east right-of-way
2-21     line of said Dairy Ashford Road to the projected south right-of-way
2-22     line of Barryknoll Lane;
2-23           THENCE in a northwesterly direction with the south
2-24     right-of-way line of said Barryknoll Lane to the southeast
2-25     right-of-way line of Threadneedle Street;
2-26           THENCE in a northerly direction with the southeast
 3-1     right-of-way line of Threadneedle Street to the south right-of-way
 3-2     line of said Interstate Highway 10;
 3-3           THENCE in a westerly direction with the south right-of-way
 3-4     line of said Interstate Highway 10 to the west line of a Harris
 3-5     County Flood Control Ditch and the west line of London Townhomes;
 3-6           THENCE in a southerly direction with the west line of said
 3-7     London Townhomes and the east line of Memorial Oaks Cemetery to the
 3-8     southwest corner of West Bayou Oaks Townhomes;
 3-9           THENCE in an easterly direction with the south line of said
3-10     West Bayou Oaks Townhomes and a north line of said Memorial Oaks
3-11     Cemetery to the northeast corner of Memorial Oaks Cemetery located
3-12     in the south right-of-way line of Barryknoll Lane;
3-13           THENCE in a southerly direction with the east line of said
3-14     Memorial Oaks Cemetery approximately 262 feet to a point;
3-15           THENCE in an easterly direction continuing with the east line
3-16     of said Memorial Oaks Cemetery approximately 153 feet to a point;
3-17           THENCE in a southerly direction continuing with the east line
3-18     of said Memorial Oaks Cemetery to the southeast corner of said
3-19     Memorial Oaks Cemetery;
3-20           THENCE in a southwesterly direction with the south line of
3-21     said Memorial Oaks Cemetery and the north line of said Thornwood,
3-22     Section 1, to an angle point in the east line of Thornwood, Section
3-23     4 and the north line of Thornwood, Section 1;
3-24           THENCE in a northerly direction with the east line of said
3-25     Thornwood, Section 4 to the northeast corner of said Thornwood,
3-26     Section 4;
 4-1           THENCE west with the north line of said Thornwood, Section 4
 4-2     to the most northerly northwest corner of said Thornwood, Section
 4-3     4;
 4-4           THENCE in a southerly direction with the west line of said
 4-5     Thornwood, Section 4 to a point on the west line of said Thornwood,
 4-6     Section 4;
 4-7           THENCE in a westerly direction with the west line of said
 4-8     Thornwood, Section 4 to the most southerly northwest corner of said
 4-9     Thornwood, Section 4;
4-10           THENCE in a southerly direction with the west line of said
4-11     Thornwood, Section 4, and a southeast line of said Memorial Oaks
4-12     Cemetery to the south right-of-way line of La Costa Lane;
4-13           THENCE in a westerly direction with the south right-of-way
4-14     line of said La Costa Lane to the northeast right-of-way line of
4-15     Memorial Drive;
4-16           THENCE in a southeast direction with the northeast
4-17     right-of-way line of said Memorial Drive to the south right-of-way
4-18     line of Kimberly Lane;
4-19           THENCE in a westerly direction with the projected north line
4-20     of Woods on Memorial, Section 1, to the east right-of-way line of
4-21     Eldridge Road;
4-22           THENCE in a southwesterly direction with the east
4-23     right-of-way line of said Eldridge Road to the west line of Turkey
4-24     Creek Townhomes;
4-25           THENCE in a southerly direction with the west line of said
4-26     Turkey Creek Townhomes to the northeast line of Buffalo Bayou;
 5-1           THENCE in a southeasterly direction with the northeast line
 5-2     of said Buffalo Bayou to a point located approximately 224 feet
 5-3     north of the northwest corner of Nottingham Forest, Section 8;
 5-4           THENCE in a southwesterly direction with the east line of
 5-5     said Buffalo Bayou to the east line of the J. Wheaton Survey, A-80;
 5-6           THENCE in a southerly direction with the east line of said J.
 5-7     Wheaton Survey, A-80 to the south right-of-way line of Briar Forest
 5-8     Drive;
 5-9           THENCE in a westerly direction with the south right-of-way
5-10     line of said Briar Forest Drive to the west line of Lakeside
5-11     Enclave subdivision;
5-12           THENCE in a southerly direction with the west line of said
5-13     Lakeside Enclave subdivision to the north line of Parkway Plaza,
5-14     Section 3;
5-15           THENCE in a westerly direction with the north line of said
5-16     Parkway Plaza, Section 3, to the east right-of-way line of Eldridge
5-17     Road;
5-18           THENCE in a southerly direction with the east right-of-way
5-19     line of said Eldridge Road to the north right-of-way line of
5-20     Whittington Court;
5-21           THENCE in a westerly direction with the projected north
5-22     right-of-way line of said Whittington Court and the south line of
5-23     Eldridge Road Apartments to the west line of said Eldridge Road
5-24     Apartments;
5-25           THENCE in a northerly direction with the west line of said
5-26     Eldridge Road Apartments and the east line of Lakes of Parkway,
 6-1     Section 1, to the north right-of-way line of Briar Forest Drive;
 6-2           THENCE in a northerly direction approximately 276 feet to a
 6-3     point in the east line of Parkway Villages, Section 6;
 6-4           THENCE in a northerly direction with the east line of said
 6-5     Parkway Villages, Section 6 to the south right-of-way line of
 6-6     Westerloch Drive;
 6-7           THENCE in a northerly direction with the projected west
 6-8     right-of-way line of said Park Bayou Drive to the north
 6-9     right-of-way line of Briarhurst Drive;
6-10           THENCE in an easterly direction with the north right-of-way
6-11     line of said Briarhurst Drive to the west right-of-way line of
6-12     Eldridge Road;
6-13           THENCE in a northerly direction with the west right-of-way
6-14     line of said Eldridge Road to the project east line of Park on
6-15     Enclave subdivision;
6-16           THENCE in a northerly direction with the east line of said
6-17     Park on Enclave subdivision crossing Enclave Parkway to the north
6-18     line of said Buffalo Bayou and the south line of Memorial Thicket,
6-19     Section 3;
6-20           THENCE in an easterly direction with the north line of said
6-21     Buffalo Bayou and the south line of said Memorial Thicket, Section
6-22     3 to the west right-of-way line of South Mayde Drive;
6-23           THENCE in a northerly direction with the west right-of-way
6-24     line of said South Mayde Drive to the northeast corner of said
6-25     Memorial Thicket, Section 3;
6-26           THENCE in a westerly direction with the north line of said
 7-1     Memorial Thicket, Section 3 to the northwest corner of said
 7-2     Memorial Thicket, Section 3 located in the east line of Memorial
 7-3     Thicket, Section 1;
 7-4           THENCE in a northerly direction with the east line of said
 7-5     Memorial Thicket, Section 1 to the northeast corner of said
 7-6     Memorial Thicket, Section 1;
 7-7           THENCE in a northwesterly direction with the north line of
 7-8     said Memorial Thicket, Section 1 to the north right-of-way line of
 7-9     Memorial Drive at the west right-of-way of Westlake Park Boulevard;
7-10           THENCE in a southwesterly direction with the north
7-11     right-of-way line of said Memorial Drive to the northeast corner of
7-12     Barker Place Townhomes;
7-13           THENCE in a westerly direction with the north line of said
7-14     Barker Place Townhomes to the east line of Barker Court Townhomes;
7-15           THENCE in a northerly direction with the east line of said
7-16     Barker Court Townhomes and the east line of Barkers Landing
7-17     subdivision to the northeast corner of said Barkers Landing
7-18     subdivision located in the south right-of-way line of Grisby Road;
7-19           THENCE in a westerly direction with the south right-of-way
7-20     line of said Grisby Road to the northwest corner of said Barkers
7-21     Landing, Section 3;
7-22           THENCE in a westerly direction with the north line of Barkers
7-23     Landing, Section 4, to the west right-of-way line of Addicks Howell
7-24     Road;
7-25           THENCE in a northerly direction with the west right-of-way
7-26     line of said Addicks Howell Road to the south right-of-way line of
 8-1     said Interstate Highway 10;
 8-2           THENCE in a westerly direction with the south right-of-way
 8-3     line of said Interstate Highway 10 to the projected east line of
 8-4     Park Ten, Section 10;
 8-5           THENCE in a northerly direction crossing said Interstate
 8-6     Highway 10 with the projected east line of said Park Ten, Section
 8-7     10, to the projected north line of Gateway at Park 10;
 8-8           THENCE in an easterly direction with the projected north line
 8-9     of said Gateway at Park 10 and the north line of Domich at Park 10
8-10     to the west right-of-way line of State Highway 6;
8-11           THENCE continuing in an easterly direction with the projected
8-12     north line of Park Ten Ranch Apartments and Park Ten MUD Water
8-13     Supply passing the east line of said Park Ten MUD Water Supply and
8-14     continuing easterly an additional 360 feet to the east line of a
8-15     3.1200-acre tract;
8-16           THENCE in a southerly direction with the east line of said
8-17     3.1200-acre tract to the north right-of-way line of Park and Ride
8-18     Drive;
8-19           THENCE in an easterly direction with the north right-of-way
8-20     line of said Park and Ride Drive to the end of said Park and Ride
8-21     Drive;
8-22           THENCE in a southerly direction with the end of said Park and
8-23     Ride Drive to the north line of Addicks Park and Ride, Section 2;
8-24           THENCE in an easterly direction with the north line of said
8-25     Addicks Park and Ride, Section 2 to the east line of said Addicks
8-26     Park and Ride, Section 2;
 9-1           THENCE in a southerly direction with the east line of said
 9-2     Addicks Park and Ride, Section 2 to the north right-of-way line of
 9-3     Old Katy Road;
 9-4           THENCE in an easterly direction with the north right-of-way
 9-5     line of said Old Katy Road to the west line of a flood control
 9-6     ditch and the Houston City Limit Line;
 9-7           THENCE in a northerly direction with the west line of said
 9-8     flood control ditch and the Houston City Limit Line to the
 9-9     projected north line of Addicks Dam Subdivision;
9-10           THENCE in an easterly direction with the projected north line
9-11     of said Addicks Dam Subdivision to the east line of said Woodcreek
9-12     Park, Section 1;
9-13           THENCE in a southerly direction with the east line of said
9-14     Woodcreek Park, Section 1 projected across Interstate Highway 10 to
9-15     the POINT OF BEGINNING save and except the entire limits of the
9-16     Addicks Dam Subdivision located north of Old Katy Road and West of
9-17     Eldridge Parkway.
9-18           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
9-19     boundaries and field notes of the district form a closure.  If a
9-20     mistake is made in the field notes or in copying the field notes in
9-21     the legislative process, the mistake does not affect the
9-22     district's:
9-23                 (1)  organization, existence, or validity;
9-24                 (2)  right to issue any type of bond for the purposes
9-25     for which the district is created or to pay the principal of and
9-26     interest on a bond;
 10-1                (3)  right to impose or collect an assessment or tax;
 10-2    or
 10-3                (4)  legality or operation.
 10-4          Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
 10-5    (a)  The district is created to serve a public use and benefit.
 10-6    All the land and other property included in the district will be
 10-7    benefited by the improvements and services to be provided by the
 10-8    district under powers conferred by Sections 52 and 52-a, Article
 10-9    III, and Section 59, Article XVI, Texas Constitution, and other
10-10    powers granted under this subchapter.
10-11          (b)  The creation of the district is in the public interest
10-12    and is essential to:
10-13                (1)  further the public purposes of the development and
10-14    diversification of the economy of the state; and
10-15                (2)  eliminate unemployment and underemployment and
10-16    develop or expand transportation and commerce.
10-17          (c)  The district will:
10-18                (1)  promote the health, safety, and general welfare of
10-19    residents, employers, employees, visitors, consumers in the
10-20    district, and the general public;
10-21                (2)  provide needed funding to preserve, maintain, and
10-22    enhance the economic health and vitality of the district as a
10-23    community and business center; and
10-24                (3)  further promote the health, safety, welfare, and
10-25    enjoyment of the public by providing pedestrian ways and by
10-26    landscaping and developing certain areas in the district, which are
 11-1    necessary for the restoration, preservation, and enhancement of
 11-2    scenic beauty.
 11-3          (d)  Pedestrian ways along or across a street, whether at
 11-4    grade or above or below the surface, and street lighting, street
 11-5    landscaping, and street art objects are parts of and necessary
 11-6    components of a street and are considered to be a street or road
 11-7    improvement.
 11-8          (e)  The district will not act as the agent or
 11-9    instrumentality of any private interest even though many private
11-10    interests will be benefited by the district, as will the general
11-11    public.
11-12          Sec. 376.457.  APPLICATION OF OTHER LAW.  Except as otherwise
11-13    provided by this subchapter, Chapter 375 applies to the district.
11-14          Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
11-15    shall be liberally construed in conformity with the findings and
11-16    purposes stated in this subchapter.
11-17          Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
11-18    district is governed by a board of nine voting directors appointed
11-19    under Section 376.460 and nonvoting directors as provided by
11-20    Section 376.461.
11-21          (b)  Voting directors serve staggered terms of four years,
11-22    with four directors' terms expiring June 1 of an odd-numbered year
11-23    and five directors' terms expiring June 1 of the following
11-24    odd-numbered year.
11-25          (c)  A voting director may receive compensation as provided
11-26    by Section 49.060, Water Code.
 12-1          Sec. 376.460.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
 12-2    members of the governing body of the municipality shall appoint
 12-3    voting directors from persons recommended by the board.  A person
 12-4    is appointed if a majority of the directors and the mayor vote to
 12-5    appoint that person.
 12-6          (b)  A person may not be appointed to the board if the
 12-7    appointment of that person would result in less than two-thirds of
 12-8    the directors residing in the municipality.
 12-9          Sec. 376.461.  NONVOTING DIRECTORS.  (a)  The following
12-10    persons shall serve as nonvoting directors:
12-11                (1)  the director of the following departments of the
12-12    municipality:
12-13                      (A)  parks and recreation;
12-14                      (B)  planning and development;
12-15                      (C)  public works; and
12-16                      (D)  civic center;
12-17                (2)  the municipality's chief of police;
12-18                (3)  the director of the engineering division of the
12-19    county department of public infrastructure;
12-20                (4)  the Houston district engineer for the Texas
12-21    Department of Transportation;
12-22                (5)  the county's general manager of the Metropolitan
12-23    Transit Authority; and
12-24                (6)  the presidents of any institutions of higher
12-25    learning located in the district.
12-26          (b)  If an agency, department, or division described by
 13-1    Subsection (a) is consolidated, renamed, or changed, the board may
 13-2    appoint a director of the consolidated, renamed, or changed agency,
 13-3    department, or division as a nonvoting director.  If an agency,
 13-4    department, or division described by Subsection (a) is abolished,
 13-5    the board may appoint a representative of another agency,
 13-6    department, or division that performs duties comparable to those
 13-7    performed by the abolished entity.
 13-8          Sec. 376.462.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
 13-9    (a)  Except as provided by this section:
13-10                (1)  a director may participate in all board votes and
13-11    decisions; and
13-12                (2)  Chapter 171 governs conflicts of interest for
13-13    board members.
13-14          (b)  Section 171.004 does not apply to the district.  A
13-15    director who has a substantial interest in a business or charitable
13-16    entity that will receive a pecuniary benefit from a board action
13-17    shall file a one-time affidavit declaring the interest.  An
13-18    additional affidavit is not required if the director's interest
13-19    changes.  After the affidavit is filed with the board secretary,
13-20    the director may participate in a discussion or vote on that action
13-21    if:
13-22                (1)  a majority of the directors have a similar
13-23    interest in the same entity; or
13-24                (2)  all other similar business or charitable entities
13-25    in the district will receive a similar pecuniary benefit.
13-26          (c)  A director who is also an officer or employee of a
 14-1    public entity may not participate in the discussion of or vote on a
 14-2    matter regarding a contract with that same public entity.
 14-3          (d)  For purposes of this section, a director has a
 14-4    substantial interest in a charitable entity in the same manner that
 14-5    a person would have a substantial interest in a business entity
 14-6    under Section 171.002.
 14-7          Sec. 376.463.  ELECTRONIC TRANSMISSIONS.  (a)  The district
 14-8    may acquire, operate, or charge fees for the use of district
 14-9    conduits for:
14-10                (1)  another person's:
14-11                      (A)  telecommunications network;
14-12                      (B)  fiber-optic cable; or
14-13                      (C)  electronic transmission line; or
14-14                (2)  any other types of transmission line or supporting
14-15    facility.
14-16          (b)  The district may not require a person to use a district
14-17    conduit.
14-18          Sec. 376.464.  ADDITIONAL POWERS OF DISTRICT.  (a)  The
14-19    district may exercise the powers given to a corporation created
14-20    under Section 4B, Development Corporation Act of 1979 (Article
14-21    5190.6, Vernon's Texas Civil Statutes).
14-22          (b)  The district may exercise the powers given to a housing
14-23    finance corporation created under Chapter 394 to provide housing or
14-24    residential development projects in the district.
14-25          Sec. 376.465.  AGREEMENTS:  GENERAL; GIFTS, INTERLOCAL
14-26    AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
 15-1    make an agreement with or accept a gift, grant, or loan from any
 15-2    person.
 15-3          (b)  The implementation of a project is a governmental
 15-4    function or service for the purposes of Chapter 791, Government
 15-5    Code.
 15-6          (c)  To protect the public interest, the district may
 15-7    contract with the municipality or the county to provide law
 15-8    enforcement services in the district for a fee.
 15-9          Sec. 376.466.  NONPROFIT CORPORATION.  (a)  The board by
15-10    resolution may authorize the creation of a nonprofit corporation to
15-11    assist and act on behalf of the district in implementing a project
15-12    or providing a service authorized by this subchapter.
15-13          (b)  The board shall appoint the board of directors of a
15-14    nonprofit corporation created under this section.  The board of
15-15    directors of the nonprofit corporation shall serve in the same
15-16    manner as a board of directors of a local government corporation
15-17    created under Chapter 431, Transportation Code.
15-18          (c)  A nonprofit corporation created under this section has
15-19    the powers of and is considered for purposes of this subchapter to
15-20    be a local government corporation created under Chapter 431,
15-21    Transportation Code.
15-22          (d)  A nonprofit corporation created under this section may
15-23    implement any project and provide any service authorized by this
15-24    subchapter.
15-25          Sec. 376.467.  REQUIREMENTS FOR FINANCING SERVICES AND
15-26    IMPROVEMENTS.  The board may not finance a service or improvement
 16-1    project under this subchapter unless a written petition requesting
 16-2    the improvement or service has been filed with the board.  The
 16-3    petition must be signed by:
 16-4                (1)  the owners of a majority of the assessed value of
 16-5    real property in the district as determined by the most recent
 16-6    certified county property tax rolls; or
 16-7                (2)  at least 25 persons who own land in the district,
 16-8    if there are more than 25 persons who own property in the district
 16-9    as determined by the most recent certified county property tax
16-10    rolls.
16-11          Sec. 376.468.  ELECTIONS.  (a)  In addition to the elections
16-12    the district must hold under Subchapter L, Chapter 375, the
16-13    district shall hold an election in the manner provided by that
16-14    subchapter to obtain voter approval before the district imposes a
16-15    maintenance tax or issues bonds payable from ad valorem taxes or
16-16    assessments.
16-17          (b)  The board may include more than one purpose in a single
16-18    proposition at an election.
16-19          Sec. 376.469.  MAINTENANCE TAX.  (a)  If authorized at an
16-20    election held in accordance with Section 376.468, the district may
16-21    impose and collect an annual ad valorem tax on taxable property in
16-22    the district for the maintenance and operation of the district and
16-23    the improvements constructed or acquired by the district or for the
16-24    provision of services.
16-25          (b)  The board shall determine the tax rate.
16-26          Sec. 376.470.  ASSESSMENTS.  (a)  The board may impose and
 17-1    collect an assessment for any purpose authorized by this
 17-2    subchapter.
 17-3          (b)  Assessments, including assessments resulting from an
 17-4    addition to or correction of the assessment roll by the district,
 17-5    reassessments, penalties and interest on an assessment or
 17-6    reassessment, expenses of collection, and reasonable attorney's
 17-7    fees incurred by the district:
 17-8                (1)  are a first and prior lien against the property
 17-9    assessed;
17-10                (2)  are superior to any other lien or claim other than
17-11    a lien or claim for county, school district, or municipal ad
17-12    valorem taxes; and
17-13                (3)  are the personal liability of and charge against
17-14    the owners of the property even if the owners are not named in the
17-15    assessment proceedings.
17-16          (c)  The lien is effective from the date of the resolution of
17-17    the board imposing the assessment until the assessment is paid.
17-18    The board may enforce the lien in the same manner that the board
17-19    may enforce an ad valorem tax lien against real property.
17-20          Sec. 376.471.  UTILITIES.  The district may not impose an
17-21    impact fee or assessment on the property, equipment, rights-of-way,
17-22    facilities, or improvements of an electric utility or a power
17-23    generation company as defined by Section 31.002, Utilities Code, of
17-24    a gas utility as defined by Section 101.003 or 121.001, Utilities
17-25    Code, or of a person that provides to the public cable television
17-26    or advanced services.
 18-1          Sec. 376.472.  BONDS.  (a)  The district may issue bonds or
 18-2    other obligations payable in whole or in part from ad valorem
 18-3    taxes, assessments, impact fees, revenues, grants, or other money
 18-4    of the district, or any combination of those sources of money, to
 18-5    pay for any authorized purpose of the district.
 18-6          (b)  Bonds or other obligations of the district may be issued
 18-7    in the form of bonds, notes, certificates of participation,
 18-8    including other instruments evidencing a proportionate interest in
 18-9    payments to be made by the district, or other obligations that are
18-10    issued in the exercise of the district's borrowing power and may be
18-11    issued in bearer or registered form or not represented by an
18-12    instrument but the transfer of which is registered on books
18-13    maintained by or on behalf of the district.
18-14          Sec. 376.473.  MUNICIPAL APPROVAL.  (a)  Except as provided
18-15    by Subsection (b), the district must obtain approval from the
18-16    municipality's governing body of:
18-17                (1)  the issuance of bonds for an improvement project;
18-18                (2)  the plans and specifications of an improvement
18-19    project financed by the bonds; and
18-20                (3)  the plans and specifications of a district
18-21    improvement project related to:
18-22                      (A)  the use of land owned by the municipality;
18-23                      (B)  an easement granted by the municipality; or
18-24                      (C)  a right-of-way of a street, road, or
18-25    highway.
18-26          (b)  If the district obtains approval from the municipality's
 19-1    governing body of a capital improvements budget for a period not to
 19-2    exceed five years, the district may finance the capital
 19-3    improvements and issue bonds specified in the budget without
 19-4    further approval from the municipality.
 19-5          (c)  Except as provided by Section 375.263, a municipality is
 19-6    not obligated to pay any bonds, notes, or other obligations of the
 19-7    district.
 19-8          Sec. 376.474.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
 19-9    board by resolution shall establish the number of directors'
19-10    signatures and the procedure required for a disbursement or
19-11    transfer of the district's money.
19-12          Sec. 376.475.  COMPETITIVE BIDDING LIMIT.  Section 375.221
19-13    applies to the district only for a contract with a value greater
19-14    than $25,000.
19-15          Sec. 376.476.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
19-16    OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
19-17    that has debt.  If the vote is in favor of dissolution, the
19-18    district shall remain in existence solely for the limited purpose
19-19    of discharging its debts.  The dissolution is effective when all
19-20    debts have been discharged.
19-21          (b)  Section 375.264 does not apply to the district.
19-22          Sec. 376.477.  INITIAL DIRECTORS.  (a)  The initial board
19-23    consists of the following persons:
19-24                Pos. No.                Name of Director
19-25                1                       Robert Becker
19-26                2                       Tom Blackwell
 20-1                3                       Lynn Grafing
 20-2                4                       Rick Rice
 20-3                5                       David W. Hightower
 20-4                6                       Mike Turner
 20-5                7                       Ned Holmes
 20-6                8                       Roger H. Hord
 20-7                9                       Cathy Wining
 20-8          (b)  Of the initial directors, the terms of directors
 20-9    appointed for positions 1 through 5 expire on June 1, 2005, and the
20-10    terms of directors appointed for positions 6 through 9 expire on
20-11    June 1, 2003.
20-12          (c)  Section 376.460 does not apply to this section.
20-13          (d)  This section expires September 1, 2006.
20-14          SECTION 2.  The legislature finds that:
20-15                (1)  proper and legal notice of the intention to
20-16    introduce this Act, setting forth the general substance of this
20-17    Act, has been published as provided by law, and the notice and a
20-18    copy of this Act have been furnished to all persons, agencies,
20-19    officials, or entities to which they are required to be furnished
20-20    by the constitution and laws of this state, including the governor,
20-21    who has submitted the notice and Act to the Texas Natural Resource
20-22    Conservation Commission;
20-23                (2)  the Texas Natural Resource Conservation Commission
20-24    has filed its recommendations relating to this Act with the
20-25    governor, lieutenant governor, and speaker of the house of
20-26    representatives within the required time;
 21-1                (3)  the general law relating to consent by political
 21-2    subdivisions to the creation of districts with conservation,
 21-3    reclamation, and road powers and the inclusion of land in those
 21-4    districts has been complied with; and
 21-5                (4)  all requirements of the constitution and laws of
 21-6    this state and the rules and procedures of the legislature with
 21-7    respect to the notice, introduction, and passage of this Act have
 21-8    been fulfilled and accomplished.
 21-9          SECTION 3.  This Act takes effect immediately if it receives
21-10    a vote of two-thirds of all the members elected to each house, as
21-11    provided by Section 39, Article III, Texas Constitution.  If this
21-12    Act does not receive the vote necessary for immediate effect, this
21-13    Act takes effect September 1, 2001.