By:  Shapiro, Nelson                                  S.B. No. 1782
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Frisco Square Management District;
 1-3     providing the 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.  FRISCO SQUARE MANAGEMENT DISTRICT
 1-8           Sec. 376.451.  CREATION OF DISTRICT.  (a)  The Frisco Square
 1-9     Management District is created as a special district under Section
1-10     59, Article XVI, Texas Constitution.
1-11           (b)  The board by resolution may change the district's name.
1-12           (c)  The creation of the district is essential to accomplish
1-13     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-14     Article XVI, Texas Constitution, and other public purposes stated
1-15     in this subchapter.
1-16           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-17     the district is necessary to promote, develop, encourage, and
1-18     maintain employment, commerce, transportation, housing, tourism,
1-19     recreation, arts, entertainment, economic development, safety, and
1-20     the public welfare in the municipality's central business area.
1-21           (b)  The creation of the district and this legislation are
1-22     not to be interpreted to relieve the county or the municipality
1-23     from providing the level of services, as of September 1, 2001, to
1-24     the area in the district or to release the county or the
1-25     municipality from the obligations each entity has to provide
 2-1     services to that area.  The district is created to supplement and
 2-2     not supplant the municipal services provided in the area in the
 2-3     district.
 2-4           (c)  By creating the district and in authorizing the
 2-5     municipality, county, and other political subdivisions to contract
 2-6     with the district, the legislature has established a program to
 2-7     accomplish the public purposes set out in Section 52-a, Article
 2-8     III, Texas Constitution.
 2-9           Sec. 376.453.  DEFINITIONS.  In this subchapter:
2-10                 (1)  "Board" means the board of directors of the
2-11     district.
2-12                 (2)  "County" means Collin County.
2-13                 (3)  "District" means the Frisco Square Management
2-14     District.
2-15                 (4)  "Municipality" means the City of Frisco.
2-16                 (5)  "Utility" means a person that provides gas,
2-17     electricity, telephone, sewage, or water service to the public.
2-18           Sec. 376.454.  BOUNDARIES.  The district includes all the
2-19     territory contained within the following described area:
2-20     BEING a 114.8298 acre tract of land situated in the W.B. Watkins
2-21     Survey, Abstract No 1004, the Lewis H. McNeil Survey, Abstract No.
2-22     618 and the Clayton Rogers Survey, Abstract No 1089, all in the
2-23     City of Frisco, Collin County, Texas and being described more
2-24     particularly by metes and bounds as follows:
2-25     BEGINNING at a 1/2 inch iron rod found for the intersection of the
2-26     centerline of Cotton Gin Road with the east right-of-way line of
 3-1     the Dallas North Tollway (300 feet R.O.W.), said point being on a
 3-2     curve to the right having a central angle of 2 deg. 50 min. 55
 3-3     sec., a radius of 3014.79 feet and a chord which bears South 01
 3-4     deg. 22 min. 55 sec. East, and a chord distance of 149.88 feet;
 3-5     1.          THENCE southerly, with the east right-of-way line of
 3-6     said Dallas North Tollway and said curve, through an arc distance
 3-7     of 149.89 feet to the end of said curve at a point of tangency;
 3-8     2.          THENCE South 00 deg. 02 min. 33 sec. West, with the
 3-9     east right-of-way line of said Dallas North Tollway, a distance of
3-10     607.59 feet to the beginning of,, a tangent circular curve to the
3-11     left having a central angle of 9 deg. 09 min. 55 sec., a radius of
3-12     2714.79 feet and a chord which bears South 04 deg. 32 min. 25 sec.
3-13     East, and a chord distance of 433.81 feet;
3-14     3.          THENCE southerly, with the east right-of-way line of
3-15     said Dallas North Tollway and said curve, through an arc distance
3-16     of 434.27 feet to the end of said curve;
3-17     4.          THENCE perpendicular to the right-of-way of Dallas
3-18     North Tollway, South 80 deg. 52 min. 37 sec. West, at a distance of
3-19     300 feet passing the common west right-of- way of said Dallas North
3-20     Tollway and the eastern line of that certain 129.759 acre tract of
3-21     land conveyed to Lill Yang, Trustee, as recorded in Volume 3063,
3-22     Page 145, D.R.C.C.T., and continuing, in all, a total distance of
3-23     320.00 feet to a point said point being on a circular curve to the
3-24     right having a central angle of 9 deg.09 min. 55 sec., a radius of
3-25     3034.79 feet, a chord which bears North 4 deg. 32 min. 25 sec.
3-26     West, and a chord distance of 484.95 feet:
 4-1     5.          THENCE northerly, 20 feet parallel with said west
 4-2     right- of-way line of the Dallas North Tollway and said curve,
 4-3     through an arc distance of 485 46 feet to the end of said curve at
 4-4     a point of tangency;
 4-5     6.          THENCE North 00 deg. 02 min. 33 sec. East, 20 feet
 4-6     .parallel with said west right-of-way line, a distance of 607.59
 4-7     feet to the beginning of a tangent curve to the left having a
 4-8     central angle of 4 deg. 26 min. 55 sec., a radius of 2694 79 feet,
 4-9     a chord which bears North 2 deg. 10 min. 55 sec. West, and a chord
4-10     distance of 209 17 feet;
4-11     7.          THENCE northerly, 20 feet parallel with the west
4-12     right-of-way line of said Dallas North  Tollway and said curve,
4-13     through an arc distance of 209 22 feet to the end of said curve;
4-14     8.          THENCE North 89 deg. 53 min. 53 sec. East at a distance
4-15     of 20 03 feet passing the west right-of-way of said Dallas North
4-16     Tollway, and at a distance of 320 78 feet passing the east
4-17     right-of-way line of said Dallas North Tollway, and continuing, in
4-18     all, a distance of 601.01 feet to a point;
4-19     9.          THENCE North 41 deg. 38 min. 52 sec. East, a distance
4-20     of 33   30 feet to a point;
4-21     10.         THENCE North 6 deg. 36 min. 16 sec. West, a distance of
4-22     974   41 feet to a point
4-23     11.         THENCE South 83 deg. 23 min. 44 sec West, .-a distance
4-24     of 270 00 feet to a .point,
4-25     12.         THENCE South 38 deg. 23 min. 44 sec. West, a distance
4-26     of 28.28 feet to a point
 5-1     13.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
 5-2     of 10.00 feet to a point on the east right-of-way line of said
 5-3     Dallas North Tollway;
 5-4     14.         THENCE North 06 deg. 36 min. 16 sec. West with the east
 5-5     right-of-way line of said Dallas North Tollway, a distance of
 5-6     1606.36 feet to the intersection of the east right-of-way line of
 5-7     said Dallas North Tollway with the, proposed north right-of-way
 5-8     line of Farm to Market Road 720 (F.M.720, variable width R. O. W.);
 5-9     THENCE with the proposed north right-of-way line of said F M 720,
5-10     the folio-wing, metes and bounds:
5-11     15.         South 48 deg. 08 min. 26 sec. East, a distance of 37 43
5-12     feet  to a point;
5-13     16.         South 89 deg. 40 min. 36 sec. East, a distance of 20.66
5-14     feet to a points said point being on a tangent curve to the left
5-15     having a central angle of 4 deg. 11 min 37 sec, radius of  2430.00
5-16     feet, a chord which bears North 88 deg. 13 min 36 sec. East, and a
5-17     distance of 177.82 feet;
5-18     17.         Easterly, with said curve, through an arc distance of
5-19     177.86 feet to the end of said curve;
5-20     18.         South 86 deg. 13 min. 33 sec. East, a distance of 97.72
5-21     feet to a point;
5-22     19.         North 86 deg. 07 min. 47 sec. East, a distance of
5-23     1548.06 feet to a point;
5-24     20.         South 20 deg. 38 min. 35 sec. East, a distance of 10.44
5-25     feet to a point;,
5-26     21.         North 86 deg. 07 min. 47 sec. East, a distance of 28.75
 6-1     feet to a point, said point being on a tangent curve to the left
 6-2     having a central angle of 10 deg. 51 min. 32 sec., a radius of
 6-3     2722.02 feet, a chord which bears South 88 deg. 26 min. 27 sec.
 6-4     East, and a chord distance of 515.11 feet;
 6-5     22.         Easterly, with said curve,. through an arc distance of
 6-6     515.88 feet to a point;
 6-7     23.         South 78 deg. 05 min. 56 sec. East, a distance of
 6-8     555.37 feet to a point;
 6-9     24.         THENCE leaving the proposed north right-of-way line of
6-10     said F.M. 720, South 11 deg. 54 min. 04 sec. West, a distance of
6-11     80.00 feet to a point;
6-12     25.         THENCE South 12 deg;. 16 min. 44 sec. West, a distance
6-13     of 81.56 feet to a point;
6-14     26.         THENCE South 77 deg. 53 min. 30 sec. East, a distance
6-15     of 61.81 feet to a point;
6-16     27.         THENCE South 78 deg. 08 min. 24 sec. East, a distance
6-17     of 138.19 feet to a point on the west right-of-way line of the
6-18     Burlington Northern and Santa Fe Railroad;
6-19     28.         THENCE South 12 deg. 16 min. 44 sec. West, with the
6-20     west right-of-way line of said Burlington Northern and Santa Fe
6-21     Railroad, a distance of 210.00 feet to the intersection of the west
6-22     right-of-way line of said Burlington Northern and Santa Fe Railroad
6-23     with the north right-of-way line of Main Street (80 feet R.O.W.);
6-24     29.         THENCE South 12 deb. 13 min. 18 sec. West, with the
6-25     west right-of-way line of said Burlington Northern and Santa Fe
6-26     Railroad, a distance of 80.52 feet to the intersection of the west
 7-1     right-of-way line of said Burlington Northern and Santa Fe Railroad
 7-2     with the south right-of-way line of said Main Street;
 7-3     30.         THENCE South 12 deg. 51 min. 45 sec. West, with the
 7-4     west right-of-way line of said Burlington Northern and Santa Fe
 7-5     Railroad, a distance of 359.59 feet to the intersection of the west
 7-6     right-of-way line of said Burlington Northern and Santa Fe Railroad
 7-7     with the south right-of-way line of Elm Street (60 feet R.O.W.);
 7-8     31.         THENCE North 77 deg. 42 min. 06 see. West with said
 7-9     south right-of-way line of Elm Street a distance of 296.41 feet to
7-10     the intersection of the south right-of-way line of said Elm Street
7-11     with the east right-of-way line of John W Elliot Drive (60 feet
7-12     R.O.W.);
7-13     32.         THENCE South 12 deg. 16 min. 44 sec West, with the east
7-14     right-of-way line of said John W. Elliot Drive, a distance of
7-15     479.77 feet to a .point;
7-16     33.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
7-17     of 472.56 feet to a point;
7-18     34.         THENCE South 06 deg. 36 min. 16 sec East, a distance of
7-19     270 50 feet to a point;
7-20     35.         THENCE North 83 deg. 23 min. 44 see. East, a distance
7-21     of 316 62 feet to a point;
7-22     36.         THENCE North 12 deg. 16 min. 44 sec East, a distance of
7-23     65 48 feet to a point;
7-24     37.         THENCE South 77 deg. 43 min. 16 sec. East a distance of
7-25     281.14 feet to a 1/2 inch iron rod found on the west right-of-way
7-26     line of said Burlington Northern and Santa Fe Railroad;
 8-1     38.         THENCE South 19 deg. 00 min. 34 sec West, with the west
 8-2     right-of-way line of said Burlington Northern and Santa Fe
 8-3     Railroad, a distance of 96614 feet to a point;
 8-4     39.         THENCE North 06 deg. 36 min. 16 sec West, -a distance
 8-5     of 174 73 feet to a point;
 8-6     40.         THENCE South 89 deg. 53 min. 53 sec West, a distance of
 8-7     5 19 feet to a point;
 8-8     41.         THENCE North 06 deg. 36 min. 16 sec West, a distance of
 8-9     586 41 feet to a point;
8-10     42.         THENCE South 83 deg. 23 min. 44 sec. West- a distance
8-11     of 325 50 feet to a point;
8-12     43.         THENCE South 06 deg. 36 min. 16 sec East, a distance of
8-13     549 31 feet to a point;
8-14     44.         THENCE South 89 deg. 53 min 53 sec West, a distance of
8-15     8.56 feet to a point;
8-16     45.         THENCE South 06 deg. 36 min 16 sec East, a distance of
8-17     272 91 feet to a point in the centerline of said Cotton Gin Road;
8-18     46.         THENCE South 89 deg. 53 min. 53 sec. West, with the
8-19     centerline of said Cotton in Road, a distance of 56.36 feet to a
8-20     point;
8-21     47.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
8-22     of 265.87 feet to a point;
8-23     48.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
8-24     of 8.50 feet to a point;
8-25     49.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
8-26     of 549.00 feet to a point;
 9-1     50.         THENCE South 83 den:. 23 min. 44 sec. West, a distance
 9-2     of 147.00 feet to a point;
 9-3     51.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
 9-4     of 48.50 feet to a point;
 9-5     52.         THENCE North 83 deg. 23 min. 44 sec. East a distance of
 9-6     9.50 feet to a point;
 9-7     53.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
 9-8     of 41.50 feet to a point;
 9-9     54.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
9-10     of 7.00 feet to a point;
9-11     55.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
9-12     of 319.00 feet to a point;
9-13     56.         THENCE South 83 deg. 23 min. 44 sec. West, distance of
9-14     1216.51 feet to a point;
9-15     57.         THENCE South 06 deg. 36 min. 16 sec. East, a distance
9-16     of 1067.78 feet to a point in the centerline of said Cotton Gin
9-17     Road;
9-18     58.         THENCE South 89 deg. 54 min. 01 sec. West, with the
9-19     centerline of said Cotton Gin Road a distance of 379.06 feet to the
9-20     POINT OF BEGINNING and containing 5,001,987 square feet or 114.8298
9-21     acres of land.
9-22           SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
9-23     facilities, and improvements owned by a utility.
9-24           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
9-25     boundaries and field notes of the district form a closure.  If a
9-26     mistake is made in the field notes or in copying the field notes in
 10-1    the legislative process, it does not affect the district's:
 10-2                (1)  organization, existence, or validity;
 10-3                (2)  right to issue any type of bond or other
 10-4    obligation for the purposes for which the district is created or to
 10-5    pay the principal of and interest on a bond;
 10-6                (3)  right to impose or collect assessments or taxes;
 10-7    or
 10-8                (4)  legality or operation.
 10-9          Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
10-10    (a)  All the land and other property included in the district will
10-11    be benefited by the improvements and services to be provided by the
10-12    district under powers conferred by Sections 52 and 52-a, Article
10-13    III, and Section 59, Article XVI, Texas Constitution, and other
10-14    powers granted under this subchapter, and the district is created
10-15    to serve a public use and benefit.
10-16          (b)  The creation of the district is in the public interest
10-17    and is essential to:
10-18                (1)  further the public purposes of the development and
10-19    diversification of the economy of the state; and
10-20                (2)  eliminate unemployment and underemployment and
10-21    develop or expand transportation and commerce.
10-22          (c)  The district will:
10-23                (1)  promote the health, safety, and general welfare of
10-24    residents, employers, employees, visitors, consumers in the
10-25    district, and the general public;
10-26                (2)  provide needed funding for the municipality's
 11-1    central business area extension to the west to preserve, maintain,
 11-2    and enhance the economic health and vitality of the area as a
 11-3    community and business center and to provide a government center
 11-4    for the municipality;
 11-5                (3)  further promote the health, safety, and general
 11-6    welfare of residents, employers, employees, visitors, consumers in
 11-7    the district, and the general public by providing, maintaining, and
 11-8    operating attractive, safe, and convenient street and road
 11-9    improvements and off-street parking facilities and necessary water,
11-10    sewer, and drainage facilities to serve the area within the
11-11    district; and
11-12                (4)  further promote the health, safety, welfare, and
11-13    enjoyment of the public by providing pedestrian ways, parks, and
11-14    off-street parking and by landscaping and developing certain areas
11-15    in the district, which are necessary for the restoration,
11-16    preservation, and enhancement of scenic and aesthetic beauty.
11-17          (d)  Pedestrian ways along or across a street, at grade or
11-18    above or below the surface, and street lighting, street
11-19    landscaping, and street art objects are parts of and necessary
11-20    components of a street and are considered to be a street or road
11-21    improvement.
11-22          (e)  The district will not act as the agent or
11-23    instrumentality of any private interest, even though many private
11-24    interests will be benefited by the district, as will the general
11-25    public.
11-26          (f)  Each improvement project or service authorized by this
 12-1    subchapter is essential to carry out a public purpose and will
 12-2    benefit all land and property in the district, the employees,
 12-3    employers, and consumers of the district, and the general public.
 12-4          Sec. 376.457.  APPLICATION OF OTHER LAW.  (a)  Except as
 12-5    otherwise provided by this subchapter:
 12-6                (1)  Chapter 375 applies to the district, its governing
 12-7    body, and its employees; and
 12-8                (2)  the district has the rights and powers of a
 12-9    district created under Chapter 375.
12-10          (b)  If any provision of a law referenced in this subchapter
12-11    is in conflict with or is inconsistent with this subchapter, this
12-12    subchapter prevails.  Any law referenced in this subchapter that is
12-13    not in conflict or inconsistent with this subchapter is adopted and
12-14    incorporated by reference.
12-15          Sec. 376.458.  LIBERAL CONSTRUCTION OF SUBCHAPTER.  This
12-16    subchapter shall be liberally construed in conformity with the
12-17    findings and purposes stated in this subchapter.
12-18          Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
12-19    district is governed by a board of five appointed directors and
12-20    three members serving ex officio.  The appointed members serve
12-21    staggered terms of four years, with two directors' terms expiring
12-22    July 1 of an odd-numbered year and three directors' terms expiring
12-23    July 1 of the following odd-numbered year.
12-24          (b)  A position on the board shall not be construed to be a
12-25    civil office of emolument for any purpose, including a purpose
12-26    described in Section 40, Article XVI, Texas Constitution.
 13-1          Sec. 376.460.  APPOINTMENT OF DIRECTORS.  (a)  The governing
 13-2    body of the municipality shall appoint successor directors who meet
 13-3    the qualifications of Subchapter D, Chapter 375.  The governing
 13-4    body of the municipality shall appoint a director to fill a vacancy
 13-5    on the board.
 13-6          (b)  Notwithstanding the common law doctrine of
 13-7    incompatibility, members of the governing body of the municipality
 13-8    may be appointed to the board.  The term of a director who is also
 13-9    a member of the governing body of the municipality shall expire
13-10    when the member's term on the governing body of the municipality
13-11    expires, provided that the person may be reappointed to the board
13-12    of directors to complete the unexpired term on the board.
13-13          (c)  A person may not be appointed to the board if the
13-14    appointment of that person would result in fewer than three of the
13-15    directors residing in the municipality.
13-16          (d)  District directors are public officials entitled to
13-17    governmental immunity for their official actions.
13-18          (e)  The governing body of the municipality after notice and
13-19    hearing may remove a director for misconduct or failure to carry
13-20    out the director's duties on a petition by a majority of the
13-21    remaining directors.
13-22          Sec. 376.461.  EX OFFICIO BOARD MEMBERS.  (a)  The following
13-23    persons shall serve ex officio as nonvoting directors:
13-24                (1)  the manager of the municipality;
13-25                (2)  the financial director of the municipality; and
13-26                (3)  the planning director of the municipality.
 14-1          (b)  If any of the offices described in Subsection (a)  are
 14-2    renamed, changed, or abolished, the governing body of the
 14-3    municipality may appoint another officer or employee of the
 14-4    municipality that performs duties comparable to those performed by
 14-5    the officer described in Subsection (a).
 14-6          Sec. 376.462.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
 14-7    (a)  Except as provided by Section 376.461 or this section:
 14-8                (1)  a director may participate in all board votes and
 14-9    decisions; and
14-10                (2)  Chapter 171 governs conflicts of interest for
14-11    board members.
14-12          (b)  Section 171.004 does not apply to the district.  A
14-13    director who has a substantial interest in a business or charitable
14-14    entity that will receive a pecuniary benefit from a board action
14-15    shall file a one-time affidavit declaring the interest.  An
14-16    additional affidavit is not required if the director's interest
14-17    changes.  After the affidavit is filed with the board secretary,
14-18    the director may participate in a discussion or vote on that action
14-19    if:
14-20                (1)  a majority of the directors have a similar
14-21    interest in the same entity;
14-22                (2)  all other similar business or charitable entities
14-23    in the district will receive a similar pecuniary benefit; or
14-24                (3)  the director is a property owner in the district.
14-25          (c)  A director who is also an officer or employee of a
14-26    public entity may not participate in the discussion of or vote on a
 15-1    matter regarding a contract with that same public entity.
 15-2          (d)  For purposes of this section, a director has a
 15-3    substantial interest in a charitable entity in the same manner that
 15-4    a person would have a substantial interest in a business entity
 15-5    under Section 171.002.
 15-6          Sec. 376.463.  POWERS OF DISTRICT.  (a)  The district has all
 15-7    of the powers necessary or required to accomplish the purposes for
 15-8    which the district was created.
 15-9          (b)  The district may exercise the powers given to a
15-10    corporation created under Section 4B, Development Corporation Act
15-11    of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).
15-12          (c)  The district may exercise the powers given to a housing
15-13    finance corporation created under Chapter 394 to provide housing or
15-14    residential development projects in the district.
15-15          (d)  The district may impose an ad valorem tax, assessment,
15-16    or impact fee in accordance with Chapter 375 on all property in the
15-17    district, including industrial, commercial, or residential
15-18    property, and may impose an assessment on municipal property in the
15-19    district to finance or provide improvements and services for a
15-20    project or activity this subchapter authorizes the district to
15-21    construct, acquire, improve, or provide or to make payments under a
15-22    contract.  A contract for which the payments are secured wholly or
15-23    partly from ad valorem taxes may not be executed unless the
15-24    imposition of the ad valorem taxes to secure the payment of the
15-25    contract is approved by a majority, or a larger percentage if
15-26    constitutionally required, of the qualified voters in the district
 16-1    voting at an election held for that purpose.
 16-2          (e)  The district may correct, add to, or delete assessments
 16-3    from its assessment rolls and collect assessments after such
 16-4    corrections, additions, or deletions after notice and hearing as
 16-5    provided by Subchapter F, Chapter 375.
 16-6          (f)  All or any part of the area of the district is eligible,
 16-7    notwithstanding other statutory criteria, to be included in a tax
 16-8    increment reinvestment zone created by the municipality under
 16-9    Chapter 311, Tax Code, or included in a tax abatement reinvestment
16-10    zone created by the municipality under Chapter 312, Tax Code.  All
16-11    or any part of the district is also eligible to be included in an
16-12    enterprise zone established by the municipality under Chapter 2303,
16-13    Government Code.
16-14          Sec. 376.464.  AGREEMENTS.  (a)  The district may make an
16-15    agreement with or accept a donation, grant, or loan from any
16-16    person.
16-17          (b)  A municipality, county, or other political subdivision
16-18    of the state, without further authorization, may contract with the
16-19    district for the acquisition, construction, improvement,
16-20    implementation, maintenance, and operation of a project of the
16-21    district or for providing the services authorized under this
16-22    subchapter.  A contract under this subsection may:
16-23                (1)  be for a period and include terms on which the
16-24    parties agree;
16-25                (2)  be payable from taxes or any other source of
16-26    revenue that may be available for such purpose; and
 17-1                (3)  provide that taxes or other revenues collected at
 17-2    a district project or from a person using or purchasing a commodity
 17-3    or service at a district project may be paid or rebated to the
 17-4    district under the terms of the contract.
 17-5          (c)  The implementation of a project is a governmental
 17-6    function or service for the purposes of Chapter 791, Government
 17-7    Code.
 17-8          (d)  To protect the public interest, the district may
 17-9    contract with the municipality for the municipality to provide law
17-10    enforcement services in the district for a fee.
17-11          Sec. 376.465.  NONPROFIT CORPORATION.  (a)  The board by
17-12    resolution may authorize the creation of a nonprofit corporation to
17-13    assist and act on behalf of the district in implementing a project
17-14    or providing a service authorized by this subchapter.
17-15          (b)  The board shall appoint the board of directors of a
17-16    nonprofit corporation created under this section.  The board of
17-17    directors of the nonprofit corporation shall serve in the same
17-18    manner, term, and conditions as a board of directors of a local
17-19    government corporation created under Chapter 431, Transportation
17-20    Code.
17-21          (c)  A nonprofit corporation created under this section has
17-22    the powers of and is considered for purposes of this subchapter to
17-23    be a local government corporation created under Chapter 431,
17-24    Transportation Code.
17-25          (d)  A nonprofit corporation created under this section may
17-26    implement any project and provide any service authorized by this
 18-1    subchapter.
 18-2          Sec. 376.466.  ANNEXATION.  The district may:
 18-3                (1)  annex territory as provided by Subchapter C,
 18-4    Chapter 375; and
 18-5                (2)  annex territory located inside the boundaries of a
 18-6    reinvestment zone created by the municipality under Chapter 311,
 18-7    Tax Code, if the governing body of the municipality consents to the
 18-8    annexation.
 18-9          Sec. 376.467.  PETITION REQUIRED FOR FINANCING SERVICES AND
18-10    IMPROVEMENTS.  The board may not finance a service or improvement
18-11    project under this subchapter unless a written petition requesting
18-12    the improvement or service has been filed with the board.  The
18-13    petition must be signed by:
18-14                (1)  the owners of a majority of the assessed value of
18-15    real property in the district as determined by the most recent
18-16    certified county property tax rolls; or
18-17                (2)  at least 25 persons who own land in the district,
18-18    if there are more than 25 persons who own property in the district
18-19    as determined by the most recent certified county property tax
18-20    rolls.
18-21          Sec. 376.468.  AUTHORIZATION OF MAINTENANCE TAX.  (a)  In
18-22    addition to the elections the district must hold under Subchapter
18-23    L, Chapter 375, the district shall hold an election in the manner
18-24    provided by that subchapter to obtain voter approval before the
18-25    district imposes a maintenance tax or issues bonds payable from ad
18-26    valorem taxes or assessments.
 19-1          (b)  The board may include more than one purpose in a single
 19-2    proposition at an election.
 19-3          (c)  If the district obtains the written consent of 100
 19-4    percent of the property owners in the district to impose a
 19-5    maintenance tax or issue bonds payable from ad valorem taxes or
 19-6    assessments, the district is exempt from the election requirement
 19-7    under Subsection (a) and may cancel an election called under
 19-8    Subsection (a).
 19-9          Sec. 376.469.  MAINTENANCE TAX.  (a)  If authorized in
19-10    accordance with Section 376.468, the district may impose and
19-11    collect an annual ad valorem tax on taxable property in the
19-12    district for the maintenance and operation of the district and the
19-13    improvements constructed or acquired by the district or for the
19-14    provision of services.
19-15          (b)  The board shall determine the tax rate.
19-16          Sec. 376.470.  ASSESSMENTS.  (a)  The board may impose and
19-17    collect an assessment for any purpose authorized by this
19-18    subchapter.
19-19          (b)  The district may impose assessments against any
19-20    municipal property in the district.  Payment of assessments by
19-21    other exempt jurisdictions must be established by contract.
19-22          (c)  The board may apportion the cost of an improvement
19-23    project or services to be assessed against property in the district
19-24    on all property in the district according to a finding of the board
19-25    that the improvement project or services benefit all of the
19-26    property in the district.
 20-1          (d)  The board may include two or more types of improvements
 20-2    and services in one assessment proceeding.  The board may conduct
 20-3    separate assessment proceedings as the district undertakes
 20-4    improvement projects or the provision of services.
 20-5          (e)  The board may adjust annual assessments for services in
 20-6    accordance with an annual budget the board adopts for the provision
 20-7    of those services.  An annual adjustment may not exceed the annual
 20-8    amount set forth in the original assessment proceedings except
 20-9    after public notice and hearing on the increase.
20-10          Sec. 376.471.  ASSESSMENT LIEN.  (a)  Assessments, including
20-11    assessments resulting from an addition to or correction of the
20-12    assessment roll by the district, reassessments, penalties and
20-13    interest on an assessment or reassessment, expenses of collection,
20-14    and reasonable attorney's fees incurred by the district:
20-15                (1)  are a first and prior lien against the property
20-16    assessed;
20-17                (2)  are superior to any other lien or claim other than
20-18    a lien or claim for county, school district, or municipal ad
20-19    valorem taxes; and
20-20                (3)  are the personal liability of and charge against
20-21    the owners of the property even if the owners are not named in the
20-22    assessment proceedings.
20-23          (b)  A lien under this section is effective from the date of
20-24    the resolution of the board imposing the assessment until the
20-25    assessment is paid.  The board may enforce the lien in the same
20-26    manner that the board may enforce an ad valorem tax lien against
 21-1    real property.
 21-2          Sec. 376.472.  UTILITIES.  The district may not impose an
 21-3    assessment or impact fee on a utility's property.
 21-4          Sec. 376.473.  MUNICIPAL APPROVAL.  (a)  Except as provided
 21-5    by Subsection (b), the district must obtain from the municipality's
 21-6    governing body approval of:
 21-7                (1)  the issuance of bonds for an improvement project;
 21-8    and
 21-9                (2)  the plans and specifications of an improvement
21-10    project financed by the bonds.
21-11          (b)  If the district obtains approval from the municipality's
21-12    governing body of a capital improvements budget for a period not to
21-13    exceed five years, the district may finance the capital
21-14    improvements and issue bonds specified in the budget without
21-15    further approval from the municipality.
21-16          (c)  The district must obtain approval from the
21-17    municipality's governing body of the plans and specifications of
21-18    any district improvement project related to the use of land owned
21-19    by the municipality, an easement granted by the municipality, or a
21-20    right-of-way of a street, road, or highway.
21-21          (d)  Except as provided by Section 375.263, a municipality is
21-22    not obligated to pay any bonds, notes, or other obligations of the
21-23    district.
21-24          Sec. 376.474.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
21-25    board by resolution shall establish the number of directors'
21-26    signatures and the procedure required for a disbursement or
 22-1    transfer of the district's money.
 22-2          Sec. 376.475.  COMPETITIVE BIDDING LIMIT.  Section 375.221
 22-3    does not apply to the district unless the contract is for more than
 22-4    $25,000.
 22-5          Sec. 376.476.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
 22-6    OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
 22-7    that has debt.  If the vote is in favor of dissolution, the
 22-8    district shall remain in existence solely for the limited purpose
 22-9    of discharging its debts.  The dissolution is effective when all
22-10    debts have been discharged.
22-11          (b)  Section 375.264 does not apply to the district.
22-12          SECTION 2.  The legislature finds that:
22-13                (1)  proper and legal notice of the intention to
22-14    introduce this Act, setting forth the general substance of this
22-15    Act, has been published as provided by law, and the notice and a
22-16    copy of this Act have been furnished to all persons, agencies,
22-17    officials, or entities to which they are required to be furnished
22-18    by the constitution and laws of this state, including the governor,
22-19    who has submitted the notice and Act to the Texas Natural Resource
22-20    Conservation Commission;
22-21                (2)  the Texas Natural Resource Conservation Commission
22-22    has filed its recommendations relating to this Act with the
22-23    governor, lieutenant governor, and speaker of the house of
22-24    representatives within the required time;
22-25                (3)  the general law relating to consent by political
22-26    subdivisions to the creation of districts with conservation,
 23-1    reclamation, and road powers and the inclusion of land in those
 23-2    districts has been complied with; and
 23-3                (4)  all requirements of the constitution and laws of
 23-4    this state and the rules and procedures of the legislature with
 23-5    respect to the notice, introduction, and passage of this Act have
 23-6    been fulfilled and accomplished.
 23-7          SECTION 3.  (a)  The initial board of directors of the Frisco
 23-8    Square Management District consists of:
 23-9          Position No. 1.  Kathleen A. Seei
23-10                       2.  Maher Maso
23-11                       3.  E. Michael Simpson
23-12                       4.  Joseph Cole McDowell, Jr.
23-13                       5.  Brenda N. McDonald
23-14          (b)  With respect to the initial board members, the members
23-15    appointed for positions one through three serve until July 1, 2003,
23-16    and the members appointed for positions four and five serve until
23-17    July 1, 2005.
23-18          SECTION 4.  This Act takes effect immediately if it receives
23-19    a vote of two-thirds of all the members elected to each house, as
23-20    provided by Section 39, Article III, Texas Constitution.  If this
23-21    Act does not receive the vote necessary for immediate effect, this
23-22    Act takes effect September 1, 2001.