1-1     By:  Lindsay                                          S.B. No. 1226
 1-2           (In the Senate - Filed March 7, 2001; March 12, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 27, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 4, Nays 0;
 1-6     April 27, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1226                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation of the Energy Corridor Management
1-11     District; providing authority to impose a tax and issue bonds.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-14     adding Subchapter K to read as follows:
1-15             SUBCHAPTER K.  ENERGY CORRIDOR MANAGEMENT DISTRICT
1-16           Sec. 376.451.  CREATION OF DISTRICT.  (a)  The Energy
1-17     Corridor Management District is created as a special district under
1-18     Section 59, Article XVI, Texas Constitution.
1-19           (b)  The board by resolution may change the district's name.
1-20           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-21     the district is necessary to promote, develop, encourage, and
1-22     maintain employment, commerce, transportation, housing, tourism,
1-23     recreation, arts, entertainment, economic development, safety, and
1-24     the public welfare in the area of the district.
1-25           (b)  The creation of the district and this legislation are
1-26     not to be interpreted to relieve the county or the municipality
1-27     from providing the level of services, as of the effective date of
1-28     this subchapter, each entity has to provide to the area in the
1-29     district.  The district is created to supplement and not supplant
1-30     the county or municipal services provided in the area in the
1-31     district.
1-32           (c)  The creation of the district is essential to accomplish
1-33     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-34     Article XVI, Texas Constitution, and other public purposes stated
1-35     in this subchapter.
1-36           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-37                 (1)  "Board" means the board of directors of the
1-38     district.
1-39                 (2)  "County" means Harris County, Texas.
1-40                 (3)  "District" means the Energy Corridor Management
1-41     District.
1-42                 (4)  "Municipality" means the City of Houston, Texas.
1-43           Sec. 376.454.  BOUNDARIES.  The district includes all the
1-44     territory contained in the following described area:
1-45           BEGINNING at a point at the intersection of the south
1-46     right-of-way line of Interstate Highway 10 and the east
1-47     right-of-way line of Tully Road;
1-48           THENCE in a southerly direction with the east right-of-way
1-49     line of said Tully Road to a line approximately 267 feet south of
1-50     the south right-of-way line of St. Mary's Street;
1-51           THENCE in a westerly direction with said line to the east
1-52     right-of-way line of Dairy Ashford Road;
1-53           THENCE in a southerly direction with the east right-of-way
1-54     line of said Dairy Ashford Road to the projected south right-of-way
1-55     line of Barryknoll Lane;
1-56           THENCE in a northwesterly direction with the south
1-57     right-of-way line of said Barryknoll Lane to the southeast
1-58     right-of-way line of Threadneedle Street;
1-59           THENCE in a northerly direction with the southeast
1-60     right-of-way line of Threadneedle Street to the south right-of-way
1-61     line of said Interstate Highway 10;
1-62           THENCE in a westerly direction with the south right-of-way
1-63     line of said Interstate Highway 10 to the west line of a Harris
1-64     County Flood Control Ditch and the west line of London Townhomes;
 2-1           THENCE in a southerly direction with the west line of said
 2-2     London Townhomes and the east line of Memorial Oaks Cemetery to the
 2-3     southwest corner of West Bayou Oaks Townhomes;
 2-4           THENCE in an easterly direction with the south line of said
 2-5     West Bayou Oaks Townhomes and a north line of said Memorial Oaks
 2-6     Cemetery to the northeast corner of Memorial Oaks Cemetery located
 2-7     in the south right-of-way line of Barryknoll Lane;
 2-8           THENCE in a southerly direction with the east line of said
 2-9     Memorial Oaks Cemetery approximately 262 feet to a point;
2-10           THENCE in an easterly direction continuing with the east line
2-11     of said Memorial Oaks Cemetery approximately 153 feet to a point;
2-12           THENCE in a southerly direction continuing with the east line
2-13     of said Memorial Oaks Cemetery to the southeast corner of said
2-14     Memorial Oaks Cemetery;
2-15           THENCE in a southwesterly direction with the south line of
2-16     said Memorial Oaks Cemetery and the north line of said Thornwood,
2-17     Section 1, to an angle point in the east line of Thornwood, Section
2-18     4 and the north line of Thornwood, Section 1;
2-19           THENCE in a northerly direction with the east line of said
2-20     Thornwood, Section 4 to the northeast corner of said Thornwood,
2-21     Section 4;
2-22           THENCE west with the north line of said Thornwood, Section 4
2-23     to the most northerly northwest corner of said Thornwood, Section
2-24     4;
2-25           THENCE in a southerly direction with the west line of said
2-26     Thornwood, Section 4 to a point on the west line of said Thornwood,
2-27     Section 4;
2-28           THENCE in a westerly direction with the west line of said
2-29     Thornwood, Section 4 to the most southerly northwest corner of said
2-30     Thornwood, Section 4;
2-31           THENCE in a southerly direction with the west line of said
2-32     Thornwood, Section 4, and a southeast line of said Memorial Oaks
2-33     Cemetery to the south right-of-way line of La Costa Lane;
2-34           THENCE in a westerly direction with the south right-of-way
2-35     line of said La Costa Lane to the northeast right-of-way line of
2-36     Memorial Drive;
2-37           THENCE in a southeast direction with the northeast
2-38     right-of-way line of said Memorial Drive to the south right-of-way
2-39     line of Kimberly Lane;
2-40           THENCE in a westerly direction with the projected north line
2-41     of Woods on Memorial, Section 1, to the east right-of-way line of
2-42     Eldridge Road;
2-43           THENCE in a southwesterly direction with the east
2-44     right-of-way line of said Eldridge Road to the west line of Turkey
2-45     Creek Townhomes;
2-46           THENCE in a southerly direction with the west line of said
2-47     Turkey Creek Townhomes to the northeast line of Buffalo Bayou;
2-48           THENCE in a southeasterly direction with the northeast line
2-49     of said Buffalo Bayou to a point located approximately 224 feet
2-50     north of the northwest corner of Nottingham Forest, Section 8;
2-51           THENCE in a southwesterly direction with the east line of
2-52     said Buffalo Bayou to the east line of the J. Wheaton Survey, A-80;
2-53           THENCE in a southerly direction with the east line of said J.
2-54     Wheaton Survey, A-80 to the south right-of-way line of Briar Forest
2-55     Drive;
2-56           THENCE in a westerly direction with the south right-of-way
2-57     line of said Briar Forest Drive to the west line of Lakeside
2-58     Enclave subdivision;
2-59           THENCE in a southerly direction with the west line of said
2-60     Lakeside Enclave subdivision to the north line of Parkway Plaza,
2-61     Section 3;
2-62           THENCE in a westerly direction with the north line of said
2-63     Parkway Plaza, Section 3, to the east right-of-way line of Eldridge
2-64     Road;
2-65           THENCE in a southerly direction with the east right-of-way
2-66     line of said Eldridge Road to the north right-of-way line of
2-67     Whittington Court;
2-68           THENCE in a westerly direction with the projected north
2-69     right-of-way line of said Whittington Court and the south line of
 3-1     Eldridge Road Apartments to the west line of said Eldridge Road
 3-2     Apartments;
 3-3           THENCE in a northerly direction with the west line of said
 3-4     Eldridge Road Apartments and the east line of Lakes of Parkway,
 3-5     Section 1, to the north right-of-way line of Briar Forest Drive;
 3-6           THENCE in a northerly direction approximately 276 feet to a
 3-7     point in the east line of Parkway Villages, Section 6;
 3-8           THENCE in a northerly direction with the east line of said
 3-9     Parkway Villages, Section 6 to the south right-of-way line of
3-10     Westerloch Drive;
3-11           THENCE in a northerly direction with the projected west
3-12     right-of-way line of said Park Bayou Drive to the north
3-13     right-of-way line of Briarhurst Drive;
3-14           THENCE in an easterly direction with the north right-of-way
3-15     line of said Briarhurst Drive to the west right-of-way line of
3-16     Eldridge Road;
3-17           THENCE in a northerly direction with the west right-of-way
3-18     line of said Eldridge Road to the project east line of Park on
3-19     Enclave subdivision;
3-20           THENCE in a northerly direction with the east line of said
3-21     Park on Enclave subdivision crossing Enclave Parkway to the north
3-22     line of said Buffalo Bayou and the south line of Memorial Thicket,
3-23     Section 3;
3-24           THENCE in an easterly direction with the north line of said
3-25     Buffalo Bayou and the south line of said Memorial Thicket, Section
3-26     3 to the west right-of-way line of South Mayde Drive;
3-27           THENCE in a northerly direction with the west right-of-way
3-28     line of said South Mayde Drive to the northeast corner of said
3-29     Memorial Thicket, Section 3;
3-30           THENCE in a westerly direction with the north line of said
3-31     Memorial Thicket, Section 3 to the northwest corner of said
3-32     Memorial Thicket, Section 3 located in the east line of Memorial
3-33     Thicket, Section 1;
3-34           THENCE in a northerly direction with the east line of said
3-35     Memorial Thicket, Section 1 to the northeast corner of said
3-36     Memorial Thicket, Section 1;
3-37           THENCE in a northwesterly direction with the north line of
3-38     said Memorial Thicket, Section 1 to the north right-of-way line of
3-39     Memorial Drive at the west right-of-way of Westlake Park Boulevard;
3-40           THENCE in a southwesterly direction with the north
3-41     right-of-way line of said Memorial Drive to the northeast corner of
3-42     Barker Place Townhomes;
3-43           THENCE in a westerly direction with the north line of said
3-44     Barker Place Townhomes to the east line of Barker Court Townhomes;
3-45           THENCE in a northerly direction with the east line of said
3-46     Barker Court Townhomes and the east line of Barkers Landing
3-47     subdivision to the northeast corner of said Barkers Landing
3-48     subdivision located in the south right-of-way line of Grisby Road;
3-49           THENCE in a westerly direction with the south right-of-way
3-50     line of said Grisby Road to the northwest corner of said Barkers
3-51     Landing, Section 3;
3-52           THENCE in a westerly direction with the north line of Barkers
3-53     Landing, Section 4, to the west right-of-way line of Addicks Howell
3-54     Road;
3-55           THENCE in a northerly direction with the west right-of-way
3-56     line of said Addicks Howell Road to the south right-of-way line of
3-57     said Interstate Highway 10;
3-58           THENCE in a westerly direction with the south right-of-way
3-59     line of said Interstate Highway 10 to the projected east line of
3-60     Park Ten, Section 10;
3-61           THENCE in a northerly direction crossing said Interstate
3-62     Highway 10 with the projected east line of said Park Ten, Section
3-63     10, to the projected north line of Gateway at Park 10;
3-64           THENCE in an easterly direction with the projected north line
3-65     of said Gateway at Park 10 and the north line of Domich at Park 10
3-66     to the west right-of-way line of State Highway 6;
3-67           THENCE continuing in an easterly direction with the projected
3-68     north line of Park Ten Ranch Apartments and Park Ten MUD Water
3-69     Supply passing the east line of said Park Ten MUD Water Supply and
 4-1     continuing easterly an additional 360 feet to the east line of a
 4-2     3.1200-acre tract;
 4-3           THENCE in a southerly direction with the east line of said
 4-4     3.1200-acre tract to the north right-of-way line of Park and Ride
 4-5     Drive;
 4-6           THENCE in an easterly direction with the north right-of-way
 4-7     line of said Park and Ride Drive to the end of said Park and Ride
 4-8     Drive;
 4-9           THENCE in a southerly direction with the end of said Park and
4-10     Ride Drive to the north line of Addicks Park and Ride, Section 2;
4-11           THENCE in an easterly direction with the north line of said
4-12     Addicks Park and Ride, Section 2 to the east line of said Addicks
4-13     Park and Ride, Section 2;
4-14           THENCE in a southerly direction with the east line of said
4-15     Addicks Park and Ride, Section 2 to the north right-of-way line of
4-16     Old Katy Road;
4-17           THENCE in an easterly direction with the north right-of-way
4-18     line of said Old Katy Road to the west line of a flood control
4-19     ditch and the Houston City Limit Line;
4-20           THENCE in a northerly direction with the west line of said
4-21     flood control ditch and the Houston City Limit Line to the
4-22     projected north line of Addicks Dam Subdivision;
4-23           THENCE in an easterly direction with the projected north line
4-24     of said Addicks Dam Subdivision to the east line of said Woodcreek
4-25     Park, Section 1;
4-26           THENCE in a southerly direction with the east line of said
4-27     Woodcreek Park, Section 1 projected across Interstate Highway 10 to
4-28     the POINT OF BEGINNING save and except the entire limits of the
4-29     Addicks Dam Subdivision located north of Old Katy Road and West of
4-30     Eldridge Parkway.
4-31           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
4-32     boundaries and field notes of the district form a closure.  If a
4-33     mistake is made in the field notes or in copying the field notes in
4-34     the legislative process, the mistake does not affect the
4-35     district's:
4-36                 (1)  organization, existence, or validity;
4-37                 (2)  right to issue any type of bond for the purposes
4-38     for which the district is created or to pay the principal of and
4-39     interest on a bond;
4-40                 (3)  right to impose or collect an assessment or tax;
4-41     or
4-42                 (4)  legality or operation.
4-43           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
4-44     (a)  The district is created to serve a public use and benefit.
4-45     All the land and other property included in the district will be
4-46     benefited by the improvements and services to be provided by the
4-47     district under powers conferred by Sections 52 and 52-a, Article
4-48     III, and Section 59, Article XVI, Texas Constitution, and other
4-49     powers granted under this subchapter.
4-50           (b)  The creation of the district is in the public interest
4-51     and is essential to:
4-52                 (1)  further the public purposes of the development and
4-53     diversification of the economy of the state; and
4-54                 (2)  eliminate unemployment and underemployment and
4-55     develop or expand transportation and commerce.
4-56           (c)  The district will:
4-57                 (1)  promote the health, safety, and general welfare of
4-58     residents, employers, employees, visitors, consumers in the
4-59     district, and the general public;
4-60                 (2)  provide needed funding to preserve, maintain, and
4-61     enhance the economic health and vitality of the district as a
4-62     community and business center; and
4-63                 (3)  further promote the health, safety, welfare, and
4-64     enjoyment of the public by providing pedestrian ways and by
4-65     landscaping and developing certain areas in the district, which are
4-66     necessary for the restoration, preservation, and enhancement of
4-67     scenic beauty.
4-68           (d)  Pedestrian ways along or across a street, whether at
4-69     grade or above or below the surface, and street lighting, street
 5-1     landscaping, and street art objects are parts of and necessary
 5-2     components of a street and are considered to be a street or road
 5-3     improvement.
 5-4           (e)  The district will not act as the agent or
 5-5     instrumentality of any private interest even though many private
 5-6     interests will be benefited by the district, as will the general
 5-7     public.
 5-8           Sec. 376.457.  APPLICATION OF OTHER LAW.  Except as otherwise
 5-9     provided by this subchapter, Chapter 375 applies to the district.
5-10           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
5-11     shall be liberally construed in conformity with the findings and
5-12     purposes stated in this subchapter.
5-13           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
5-14     district is governed by a board of nine voting directors appointed
5-15     under Section 376.460 and nonvoting directors as provided by
5-16     Section 376.461.
5-17           (b)  Voting directors serve staggered terms of four years,
5-18     with four directors' terms expiring June 1 of an odd-numbered year
5-19     and five directors' terms expiring June 1 of the following
5-20     odd-numbered year.
5-21           (c)  A voting director may receive compensation as provided
5-22     by Section 49.060, Water Code.
5-23           Sec. 376.460.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
5-24     members of the governing body of the municipality shall appoint
5-25     voting directors from persons recommended by the board.  A person
5-26     is appointed if a majority of the directors and the mayor vote to
5-27     appoint that person.
5-28           (b)  A person may not be appointed to the board if the
5-29     appointment of that person would result in less than two-thirds of
5-30     the directors residing in the municipality.
5-31           Sec. 376.461.  NONVOTING DIRECTORS.  (a)  The following
5-32     persons shall serve as nonvoting directors:
5-33                 (1)  the director of the following departments of the
5-34     municipality:
5-35                       (A)  parks and recreation;
5-36                       (B)  planning and development;
5-37                       (C)  public works; and
5-38                       (D)  civic center;
5-39                 (2)  the municipality's chief of police;
5-40                 (3)  the director of the engineering division of the
5-41     county department of public infrastructure;
5-42                 (4)  the Houston district engineer for the Texas
5-43     Department of Transportation;
5-44                 (5)  the county's general manager of the Metropolitan
5-45     Transit Authority; and
5-46                 (6)  the presidents of any institutions of higher
5-47     learning located in the district.
5-48           (b)  If an agency, department, or division described by
5-49     Subsection (a) is consolidated, renamed, or changed, the board may
5-50     appoint a director of the consolidated, renamed, or changed agency,
5-51     department, or division as a nonvoting director.  If an agency,
5-52     department, or division described by Subsection (a) is abolished,
5-53     the board may appoint a representative of another agency,
5-54     department, or division that performs duties comparable to those
5-55     performed by the abolished entity.
5-56           Sec. 376.462.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
5-57     (a)  Except as provided by this section:
5-58                 (1)  a director may participate in all board votes and
5-59     decisions; and
5-60                 (2)  Chapter 171 governs conflicts of interest for
5-61     board members.
5-62           (b)  Section 171.004 does not apply to the district.  A
5-63     director who has a substantial interest in a business or charitable
5-64     entity that will receive a pecuniary benefit from a board action
5-65     shall file a one-time affidavit declaring the interest.  An
5-66     additional affidavit is not required if the director's interest
5-67     changes.  After the affidavit is filed with the board secretary,
5-68     the director may participate in a discussion or vote on that action
5-69     if:
 6-1                 (1)  a majority of the directors have a similar
 6-2     interest in the same entity; or
 6-3                 (2)  all other similar business or charitable entities
 6-4     in the district will receive a similar pecuniary benefit.
 6-5           (c)  A director who is also an officer or employee of a
 6-6     public entity may not participate in the discussion of or vote on a
 6-7     matter regarding a contract with that same public entity.
 6-8           (d)  For purposes of this section, a director has a
 6-9     substantial interest in a charitable entity in the same manner that
6-10     a person would have a substantial interest in a business entity
6-11     under Section 171.002.
6-12           Sec. 376.463.  ELECTRONIC TRANSMISSIONS.  (a)  The district
6-13     may acquire, operate, or charge fees for the use of district
6-14     conduits for:
6-15                 (1)  another person's:
6-16                       (A)  telecommunications network;
6-17                       (B)  fiber-optic cable; or
6-18                       (C)  electronic transmission line; or
6-19                 (2)  any other types of transmission line or supporting
6-20     facility.
6-21           (b)  The district may not require a person to use a district
6-22     conduit.
6-23           Sec. 376.464.  ADDITIONAL POWERS OF DISTRICT.  (a)  The
6-24     district may exercise the powers given to a corporation created
6-25     under Section 4B, Development Corporation Act of 1979 (Article
6-26     5190.6, Vernon's Texas Civil Statutes).
6-27           (b)  The district may exercise the powers given to a housing
6-28     finance corporation created under Chapter 394 to provide housing or
6-29     residential development projects in the district.
6-30           Sec. 376.465.  AGREEMENTS:  GENERAL; GIFTS, INTERLOCAL
6-31     AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
6-32     make an agreement with or accept a gift, grant, or loan from any
6-33     person.
6-34           (b)  The implementation of a project is a governmental
6-35     function or service for the purposes of Chapter 791, Government
6-36     Code.
6-37           (c)  To protect the public interest, the district may
6-38     contract with the municipality or the county to provide law
6-39     enforcement services in the district for a fee.
6-40           Sec. 376.466.  NONPROFIT CORPORATION.  (a)  The board by
6-41     resolution may authorize the creation of a nonprofit corporation to
6-42     assist and act on behalf of the district in implementing a project
6-43     or providing a service authorized by this subchapter.
6-44           (b)  The board shall appoint the board of directors of a
6-45     nonprofit corporation created under this section.  The board of
6-46     directors of the nonprofit corporation shall serve in the same
6-47     manner as a board of directors of a local government corporation
6-48     created under Chapter 431, Transportation Code.
6-49           (c)  A nonprofit corporation created under this section has
6-50     the powers of and is considered for purposes of this subchapter to
6-51     be a local government corporation created under Chapter 431,
6-52     Transportation Code.
6-53           (d)  A nonprofit corporation created under this section may
6-54     implement any project and provide any service authorized by this
6-55     subchapter.
6-56           Sec. 376.467.  REQUIREMENTS FOR FINANCING SERVICES AND
6-57     IMPROVEMENTS.  The board may not finance a service or improvement
6-58     project under this subchapter unless a written petition requesting
6-59     the improvement or service has been filed with the board.  The
6-60     petition must be signed by:
6-61                 (1)  the owners of a majority of the assessed value of
6-62     real property in the district as determined by the most recent
6-63     certified county property tax rolls; or
6-64                 (2)  at least 25 persons who own land in the district,
6-65     if there are more than 25 persons who own property in the district
6-66     as determined by the most recent certified county property tax
6-67     rolls.
6-68           Sec. 376.468.  ELECTIONS.  (a)  In addition to the elections
6-69     the district must hold under Subchapter L, Chapter 375, the
 7-1     district shall hold an election in the manner provided by that
 7-2     subchapter to obtain voter approval before the district imposes a
 7-3     maintenance tax or issues bonds payable from ad valorem taxes or
 7-4     assessments.
 7-5           (b)  The board may include more than one purpose in a single
 7-6     proposition at an election.
 7-7           Sec. 376.469.  MAINTENANCE TAX.  (a)  If authorized at an
 7-8     election held in accordance with Section 376.468, the district may
 7-9     impose and collect an annual ad valorem tax on taxable property in
7-10     the district for the maintenance and operation of the district and
7-11     the improvements constructed or acquired by the district or for the
7-12     provision of services.
7-13           (b)  The board shall determine the tax rate.
7-14           Sec. 376.470.  ASSESSMENTS.  (a)  The board may impose and
7-15     collect an assessment for any purpose authorized by this
7-16     subchapter.
7-17           (b)  Assessments, including assessments resulting from an
7-18     addition to or correction of the assessment roll by the district,
7-19     reassessments, penalties and interest on an assessment or
7-20     reassessment, expenses of collection, and reasonable attorney's
7-21     fees incurred by the district:
7-22                 (1)  are a first and prior lien against the property
7-23     assessed;
7-24                 (2)  are superior to any other lien or claim other than
7-25     a lien or claim for county, school district, or municipal ad
7-26     valorem taxes; and
7-27                 (3)  are the personal liability of and charge against
7-28     the owners of the property even if the owners are not named in the
7-29     assessment proceedings.
7-30           (c)  The lien is effective from the date of the resolution of
7-31     the board imposing the assessment until the assessment is paid.
7-32     The board may enforce the lien in the same manner that the board
7-33     may enforce an ad valorem tax lien against real property.
7-34           Sec. 376.471.  UTILITIES.  The district may not impose an
7-35     impact fee or assessment on the property, equipment, rights-of-way,
7-36     facilities, or improvements of an electric utility or a power
7-37     generation company as defined by Section 31.002, Utilities Code, of
7-38     a gas utility as defined by Section 101.003 or 121.001, Utilities
7-39     Code, or of a person that provides to the public cable television
7-40     or advanced services.
7-41           Sec. 376.472.  BONDS.  (a)  The district may issue bonds or
7-42     other obligations payable in whole or in part from ad valorem
7-43     taxes, assessments, impact fees, revenues, grants, or other money
7-44     of the district, or any combination of those sources of money, to
7-45     pay for any authorized purpose of the district.
7-46           (b)  Bonds or other obligations of the district may be issued
7-47     in the form of bonds, notes, certificates of participation,
7-48     including other instruments evidencing a proportionate interest in
7-49     payments to be made by the district, or other obligations that are
7-50     issued in the exercise of the district's borrowing power and may be
7-51     issued in bearer or registered form or not represented by an
7-52     instrument but the transfer of which is registered on books
7-53     maintained by or on behalf of the district.
7-54           Sec. 376.473.  MUNICIPAL APPROVAL.  (a)  Except as provided
7-55     by Subsection (b), the district must obtain approval from the
7-56     municipality's governing body of:
7-57                 (1)  the issuance of bonds for an improvement project;
7-58                 (2)  the plans and specifications of an improvement
7-59     project financed by the bonds; and
7-60                 (3)  the plans and specifications of a district
7-61     improvement project related to:
7-62                       (A)  the use of land owned by the municipality;
7-63                       (B)  an easement granted by the municipality; or
7-64                       (C)  a right-of-way of a street, road, or
7-65     highway.
7-66           (b)  If the district obtains approval from the municipality's
7-67     governing body of a capital improvements budget for a period not to
7-68     exceed five years, the district may finance the capital
7-69     improvements and issue bonds specified in the budget without
 8-1     further approval from the municipality.
 8-2           (c)  Except as provided by Section 375.263, a municipality is
 8-3     not obligated to pay any bonds, notes, or other obligations of the
 8-4     district.
 8-5           Sec. 376.474.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
 8-6     board by resolution shall establish the number of directors'
 8-7     signatures and the procedure required for a disbursement or
 8-8     transfer of the district's money.
 8-9           Sec. 376.475.  COMPETITIVE BIDDING LIMIT.  Section 375.221
8-10     applies to the district only for a contract with a value greater
8-11     than $25,000.
8-12           Sec. 376.476.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
8-13     OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
8-14     that has debt.  If the vote is in favor of dissolution, the
8-15     district shall remain in existence solely for the limited purpose
8-16     of discharging its debts.  The dissolution is effective when all
8-17     debts have been discharged.
8-18           (b)  Section 375.264 does not apply to the district.
8-19           Sec. 376.477.  INITIAL DIRECTORS.  (a)  The initial board
8-20     consists of the following persons:
8-21                 Pos. No.                Name of Director
8-22                 1                       Robert Becker
8-23                 2                       Tom Blackwell
8-24                 3                       Lynn Grafing
8-25                 4                       Rick Rice
8-26                 5                       David W. Hightower
8-27                 6                       Mike Turner
8-28                 7                       Ned Holmes
8-29                 8                       Roger H. Hord
8-30                 9                       Cathy Wining
8-31           (b)  Of the initial directors, the terms of directors
8-32     appointed for positions 1 through 5 expire on June 1, 2005, and the
8-33     terms of directors appointed for positions 6 through 9 expire on
8-34     June 1, 2003.
8-35           (c)  Section 376.460 does not apply to this section.
8-36           (d)  This section expires September 1, 2006.
8-37           SECTION 2.  The legislature finds that:
8-38                 (1)  proper and legal notice of the intention to
8-39     introduce this Act, setting forth the general substance of this
8-40     Act, has been published as provided by law, and the notice and a
8-41     copy of this Act have been furnished to all persons, agencies,
8-42     officials, or entities to which they are required to be furnished
8-43     by the constitution and laws of this state, including the governor,
8-44     who has submitted the notice and Act to the Texas Natural Resource
8-45     Conservation Commission;
8-46                 (2)  the Texas Natural Resource Conservation Commission
8-47     has filed its recommendations relating to this Act with the
8-48     governor, lieutenant governor, and speaker of the house of
8-49     representatives within the required time;
8-50                 (3)  the general law relating to consent by political
8-51     subdivisions to the creation of districts with conservation,
8-52     reclamation, and road powers and the inclusion of land in those
8-53     districts has been complied with; and
8-54                 (4)  all requirements of the constitution and laws of
8-55     this state and the rules and procedures of the legislature with
8-56     respect to the notice, introduction, and passage of this Act have
8-57     been fulfilled and accomplished.
8-58           SECTION 3.  This Act takes effect immediately if it receives
8-59     a vote of two-thirds of all the members elected to each house, as
8-60     provided by Section 39, Article III, Texas Constitution.  If this
8-61     Act does not receive the vote necessary for immediate effect, this
8-62     Act takes effect September 1, 2001.
8-63                                  * * * * *