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. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1226 passed the Senate on May 8, 2001, by the following vote: Yeas 29, Nays 0, one present, not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1226 passed the House on May 23, 2001, by the following vote: Yeas 145, Nays 0, two present, not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor