By Shapiro                                            S.B. No. 1782
         77R6175 ATP-F                           
                                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
 2-1     municipality from the obligations each entity has to provide
 2-2     services to that area. The district is created to supplement and
 2-3     not supplant the municipal services provided in the area in the
 2-4     district.
 2-5           (c)  By creating the district and in authorizing the
 2-6     municipality, county, and other political subdivisions to contract
 2-7     with the district, the legislature has established a program to
 2-8     accomplish the public purposes set out in Section 52-a, Article
 2-9     III, Texas Constitution.
2-10           Sec. 376.453.  DEFINITIONS. In this subchapter:
2-11                 (1)  "Board" means the board of directors of the
2-12     district.
2-13                 (2)  "County" means Collin County.
2-14                 (3)  "District" means the Frisco Square Management
2-15     District.
2-16                 (4)  "Municipality" means the City of Frisco.
2-17                 (5)  "Utility" means a person that provides gas,
2-18     electricity, telephone, sewage, or water service to the public.
2-19           Sec. 376.454.  BOUNDARIES. The district includes all the
2-20     territory contained within the following described area:
2-21     BEING a 114.8298 acre tract of land situated in the W.B. Watkins
2-22     Survey, Abstract No 1004, the Lewis H. McNeil Survey, Abstract No.
2-23     618 and the Clayton Rogers Survey, Abstract No 1089, all in the
2-24     City of Frisco, Collin County, Texas and being described more
2-25     particularly by metes and bounds as follows:
2-26     BEGINNING at a 1/2 inch iron rod found for the intersection of the
2-27     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:
3-27     5.          THENCE northerly, 20 feet parallel with said west
 4-1     right- of-way line of the Dallas North Tollway and said curve,
 4-2     through an arc distance of 485 46 feet to the end of said curve at
 4-3     a point of tangency;
 4-4     6.          THENCE North 00 deg. 02 min. 33 sec. East, 20 feet
 4-5     .parallel with said west right-of-way line, a distance of 607.59
 4-6     feet to the beginning of a tangent curve to the left having a
 4-7     central angle of 4 deg. 26 min. 55 sec., a radius of 2694 79 feet,
 4-8     a chord which bears North 2 deg. 10 min. 55 sec. West, and a chord
 4-9     distance of 209 17 feet;
4-10     7.          THENCE northerly, 20 feet parallel with the west
4-11     right-of-way line of said Dallas North  Tollway and said curve,
4-12     through an arc distance of 209 22 feet to the end of said curve;
4-13     8.          THENCE North 89 deg. 53 min. 53 sec. East at a distance
4-14     of 20 03 feet passing the west right-of-way of said Dallas North
4-15     Tollway, and at a distance of 320 78 feet passing the east
4-16     right-of-way line of said Dallas North Tollway, and continuing, in
4-17     all, a distance of 601.01 feet to a point;
4-18     9.          THENCE North 41 deg. 38 min. 52 sec. East, a distance
4-19     of 33   30 feet to a point;
4-20     10.         THENCE North 6 deg. 36 min. 16 sec. West, a distance of
4-21     974   41 feet to a point
4-22     11.         THENCE South 83 deg. 23 min. 44 sec West, .-a distance
4-23     of 270 00 feet to a .point,
4-24     12.         THENCE South 38 deg. 23 min. 44 sec. West, a distance
4-25     of 28.28 feet to a point
4-26     13.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
4-27     of 10.00 feet to a point on the east right-of-way line of said
 5-1     Dallas North Tollway;
 5-2     14.         THENCE North 06 deg. 36 min. 16 sec. West with the east
 5-3     right-of-way line of said Dallas North Tollway, a distance of
 5-4     1606.36 feet to the intersection of the east right-of-way line of
 5-5     said Dallas North Tollway with the, proposed north right-of-way
 5-6     line of Farm to Market Road 720 (F.M.720, variable width R. O. W.);
 5-7     THENCE with the proposed north right-of-way line of said F M 720,
 5-8     the folio-wing, metes and bounds:
 5-9     15.         South 48 deg. 08 min. 26 sec. East, a distance of 37 43
5-10     feet  to a point;
5-11     16.         South 89 deg. 40 min. 36 sec. East, a distance of 20.66
5-12     feet to a points said point being on a tangent curve to the left
5-13     having a central angle of 4 deg. 11 min 37 sec, radius of  2430.00
5-14     feet, a chord which bears North 88 deg. 13 min 36 sec. East, and a
5-15     distance of 177.82 feet;
5-16     17.         Easterly, with said curve, through an arc distance of
5-17     177.86 feet to the end of said curve;
5-18     18.         South 86 deg. 13 min. 33 sec. East, a distance of 97.72
5-19     feet to a point;
5-20     19.         North 86 deg. 07 min. 47 sec. East, a distance of
5-21     1548.06 feet to a point;
5-22     20.         South 20 deg. 38 min. 35 sec. East, a distance of 10.44
5-23     feet to a point;,
5-24     21.         North 86 deg. 07 min. 47 sec. East, a distance of 28.75
5-25     feet to a point, said point being on a tangent curve to the left
5-26     having a central angle of 10 deg. 51 min. 32 sec., a radius of
5-27     2722.02 feet, a chord which bears South 88 deg. 26 min. 27 sec.
 6-1     East, and a chord distance of 515.11 feet;
 6-2     22.         Easterly, with said curve,. through an arc distance of
 6-3     515.88 feet to a point;
 6-4     23.         South 78 deg. 05 min. 56 sec. East, a distance of
 6-5     555.37 feet to a point;
 6-6     24.         THENCE leaving the proposed north right-of-way line of
 6-7     said F.M. 720, South 11 deg. 54 min. 04 sec. West, a distance of
 6-8     80.00 feet to a point;
 6-9     25.         THENCE South 12 deg;. 16 min. 44 sec. West, a distance
6-10     of 81.56 feet to a point;
6-11     26.         THENCE South 77 deg. 53 min. 30 sec. East, a distance
6-12     of 61.81 feet to a point;
6-13     27.         THENCE South 78 deg. 08 min. 24 sec. East, a distance
6-14     of 138.19 feet to a point on the west right-of-way line of the
6-15     Burlington Northern and Santa Fe Railroad;
6-16     28.         THENCE South 12 deg. 16 min. 44 sec. West, with the
6-17     west right-of-way line of said Burlington Northern and Santa Fe
6-18     Railroad, a distance of 210.00 feet to the intersection of the west
6-19     right-of-way line of said Burlington Northern and Santa Fe Railroad
6-20     with the north right-of-way line of Main Street (80 feet R.O.W.);
6-21     29.         THENCE South 12 deb. 13 min. 18 sec. West, with the
6-22     west right-of-way line of said Burlington Northern and Santa Fe
6-23     Railroad, a distance of 80.52 feet to the intersection of the west
6-24     right-of-way line of said Burlington Northern and Santa Fe Railroad
6-25     with the south right-of-way line of said Main Street;
6-26     30.         THENCE South 12 deg. 51 min. 45 sec. West, with the
6-27     west right-of-way line of said Burlington Northern and Santa Fe
 7-1     Railroad, a distance of 359.59 feet to the intersection of the west
 7-2     right-of-way line of said Burlington Northern and Santa Fe Railroad
 7-3     with the south right-of-way line of Elm Street (60 feet R.O.W.);
 7-4     31.         THENCE North 77 deg. 42 min. 06 see. West with said
 7-5     south right-of-way line of Elm Street a distance of 296.41 feet to
 7-6     the intersection of the south right-of-way line of said Elm Street
 7-7     with the east right-of-way line of John W Elliot Drive (60 feet
 7-8     R.O.W.);
 7-9     32.         THENCE South 12 deg. 16 min. 44 sec West, with the east
7-10     right-of-way line of said John W. Elliot Drive, a distance of
7-11     479.77 feet to a .point;
7-12     33.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
7-13     of 472.56 feet to a point;
7-14     34.         THENCE South 06 deg. 36 min. 16 sec East, a distance of
7-15     270 50 feet to a point;
7-16     35.         THENCE North 83 deg. 23 min. 44 see. East, a distance
7-17     of 316 62 feet to a point;
7-18     36.         THENCE North 12 deg. 16 min. 44 sec East, a distance of
7-19     65 48 feet to a point;
7-20     37.         THENCE South 77 deg. 43 min. 16 sec. East a distance of
7-21     281.14 feet to a 1/2 inch iron rod found on the west right-of-way
7-22     line of said Burlington Northern and Santa Fe Railroad;
7-23     38.         THENCE South 19 deg. 00 min. 34 sec West, with the west
7-24     right-of-way line of said Burlington Northern and Santa Fe
7-25     Railroad, a distance of 96614 feet to a point;
7-26     39.         THENCE North 06 deg. 36 min. 16 sec West, -a distance
7-27     of 174 73 feet to a point;
 8-1     40.         THENCE South 89 deg. 53 min. 53 sec West, a distance of
 8-2     5 19 feet to a point;
 8-3     41.         THENCE North 06 deg. 36 min. 16 sec West, a distance of
 8-4     586 41 feet to a point;
 8-5     42.         THENCE South 83 deg. 23 min. 44 sec. West- a distance
 8-6     of 325 50 feet to a point;
 8-7     43.         THENCE South 06 deg. 36 min. 16 sec East, a distance of
 8-8     549 31 feet to a point;
 8-9     44.         THENCE South 89 deg. 53 min 53 sec West, a distance of
8-10     8.56 feet to a point;
8-11     45.         THENCE South 06 deg. 36 min 16 sec East, a distance of
8-12     272 91 feet to a point in the centerline of said Cotton Gin Road;
8-13     46.         THENCE South 89 deg. 53 min. 53 sec. West, with the
8-14     centerline of said Cotton in Road, a distance of 56.36 feet to a
8-15     point;
8-16     47.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
8-17     of 265.87 feet to a point;
8-18     48.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
8-19     of 8.50 feet to a point;
8-20     49.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
8-21     of 549.00 feet to a point;
8-22     50.         THENCE South 83 den:. 23 min. 44 sec. West, a distance
8-23     of 147.00 feet to a point;
8-24     51.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
8-25     of 48.50 feet to a point;
8-26     52.         THENCE North 83 deg. 23 min. 44 sec. East a distance of
8-27     9.50 feet to a point;
 9-1     53.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
 9-2     of 41.50 feet to a point;
 9-3     54.         THENCE South 83 deg. 23 min. 44 sec. West, a distance
 9-4     of 7.00 feet to a point;
 9-5     55.         THENCE North 06 deg. 36 min. 16 sec. West, a distance
 9-6     of 319.00 feet to a point;
 9-7     56.         THENCE South 83 deg. 23 min. 44 sec. West, distance of
 9-8     1216.51 feet to a point;
 9-9     57.         THENCE South 06 deg. 36 min. 16 sec. East, a distance
9-10     of 1067.78 feet to a point in the centerline of said Cotton Gin
9-11     Road;
9-12     58.         THENCE South 89 deg. 54 min. 01 sec. West, with the
9-13     centerline of said Cotton Gin Road a distance of 379.06 feet to the
9-14     POINT OF BEGINNING and containing 5,001,987 square feet or 114.8298
9-15     acres of land.
9-16           SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
9-17     facilities, and improvements owned by a utility.
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, it does not affect the district's:
9-22                 (1)  organization, existence, or validity;
9-23                 (2)  right to issue any type of bond or other
9-24     obligation for the purposes for which the district is created or to
9-25     pay the principal of and interest on a bond;
9-26                 (3)  right to impose or collect assessments or taxes;
9-27     or
 10-1                (4)  legality or operation.
 10-2          Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
 10-3    All the land and other property included in the district will be
 10-4    benefited by the improvements and services to be provided by the
 10-5    district under powers conferred by Sections 52 and 52-a, Article
 10-6    III, and Section 59, Article XVI, Texas Constitution, and other
 10-7    powers granted under this subchapter, and the district is created
 10-8    to serve a public use and benefit.
 10-9          (b)  The creation of the district is in the public interest
10-10    and is essential to:
10-11                (1)  further the public purposes of the development and
10-12    diversification of the economy of the state; and
10-13                (2)  eliminate unemployment and underemployment and
10-14    develop or expand transportation and commerce.
10-15          (c)  The district will:
10-16                (1)  promote the health, safety, and general welfare of
10-17    residents, employers, employees, visitors, consumers in the
10-18    district, and the general public;
10-19                (2)  provide needed funding for the municipality's
10-20    central business area extension to the west to preserve, maintain,
10-21    and enhance the economic health and vitality of the area as a
10-22    community and business center and to provide a government center
10-23    for the municipality;
10-24                (3)  further promote the health, safety, and general
10-25    welfare of residents, employers, employees, visitors, consumers in
10-26    the district, and the general public by providing, maintaining, and
10-27    operating attractive, safe, and convenient street and road
 11-1    improvements and off-street parking facilities and necessary water,
 11-2    sewer, and drainage facilities to serve the area within the
 11-3    district; and
 11-4                (4)  further promote the health, safety, welfare, and
 11-5    enjoyment of the public by providing pedestrian ways, parks, and
 11-6    off-street parking and by landscaping and developing certain areas
 11-7    in the district, which are necessary for the restoration,
 11-8    preservation, and enhancement of scenic and aesthetic beauty.
 11-9          (d)  Pedestrian ways along or across a street, at grade or
11-10    above or below the surface, and street lighting, street
11-11    landscaping, and street art objects are parts of and necessary
11-12    components of a street and are considered to be a street or road
11-13    improvement.
11-14          (e)  The district will not act as the agent or
11-15    instrumentality of any private interest even though many private
11-16    interests will be benefited by the district, as will the general
11-17    public.
11-18          (f)  Each improvement project or service authorized by this
11-19    subchapter is essential to carry out a public purpose and will
11-20    benefit all land and property in the district, and the employees,
11-21    employers, and consumers of the district and the general public.
11-22          Sec. 376.457.  APPLICATION OF OTHER LAW. (a)  Except as
11-23    otherwise provided by this subchapter:
11-24                (1)  Chapter 375 applies to the district, its governing
11-25    body, and its employees; and
11-26                (2)  the district has the rights and powers of a
11-27    district created under Chapter 375.
 12-1          (b)  If any provision of a law referenced in this subchapter
 12-2    is in conflict with or is inconsistent with this subchapter, this
 12-3    subchapter prevails. Any law referenced in this subchapter that is
 12-4    not in conflict or inconsistent with this subchapter is adopted and
 12-5    incorporated by reference.
 12-6          Sec. 376.458.  LIBERAL CONSTRUCTION OF SUBCHAPTER. This
 12-7    subchapter shall be liberally construed in conformity with the
 12-8    findings and purposes stated in this subchapter.
 12-9          Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL. (a)  The
12-10    district is governed by a board of five appointed directors and
12-11    three members serving ex officio.  The appointed members serve
12-12    staggered terms of four years, with two directors' terms expiring
12-13    July 1 of an odd-numbered year and three directors' terms expiring
12-14    July 1 of the following odd-numbered year.
12-15          (b)  A position on the board shall not be construed to be a
12-16    civil office of emolument for any purpose, including a purpose
12-17    described in Section 40, Article XVI, Texas Constitution.
12-18          Sec. 376.460.  APPOINTMENT OF DIRECTORS. (a)  The governing
12-19    body of the municipality shall appoint successor directors who meet
12-20    qualifications of Subchapter D of Chapter 375.  The governing body
12-21    of the municipality shall appoint a director to fill a vacancy on
12-22    the board.
12-23          (b)  Notwithstanding the common law doctrine of
12-24    incompatibility, members of the governing body of the municipality
12-25    may be appointed to the board.  The term of a director who is also
12-26    a member of the governing body of the municipality shall expire
12-27    when the member's term on the governing body of the municipality
 13-1    expires provided that the person may be reappointed to the board of
 13-2    directors to complete the unexpired term on the board.
 13-3          (c)  A person may not be appointed to the board if the
 13-4    appointment of that person would result in fewer than three of the
 13-5    directors residing in the municipality.
 13-6          (d)  District directors are public officials entitled to
 13-7    governmental immunity for their official actions.
 13-8          (e)  The governing body of the municipality after notice and
 13-9    hearing may remove a director for misconduct or failure to carry
13-10    out the director's duties on a petition by a majority of the
13-11    remaining directors.
13-12          Sec. 376.461.  EX OFFICIO BOARD MEMBERS. (a)  The following
13-13    persons shall serve ex officio as nonvoting directors:
13-14                (1)  the manager of the municipality;
13-15                (2)  the financial director of the municipality; and
13-16                (3)  the planning director of the municipality.
13-17          (b)  If any of the offices described in Subsection (a)  are
13-18    renamed, changed, or abolished, the governing body of the
13-19    municipality may appoint another officer or employee of the
13-20    municipality that performs duties comparable to those performed by
13-21    the officer described in Subsection (a).
13-22          Sec. 376.462.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)
13-23    Except as provided by Section 376.461 or this section:
13-24                (1)  a director may participate in all board votes and
13-25    decisions; and
13-26                (2)  Chapter 171 governs conflicts of interest for
13-27    board members.
 14-1          (b)  Section 171.004 does not apply to the district.  A
 14-2    director who has a substantial interest in a business or charitable
 14-3    entity that will receive a pecuniary benefit from a board action
 14-4    shall file a one-time affidavit declaring the interest.  An
 14-5    additional affidavit is not required if the director's interest
 14-6    changes.  After the affidavit is filed with the board secretary,
 14-7    the director may participate in a discussion or vote on that action
 14-8    if:
 14-9                (1)  a majority of the directors have a similar
14-10    interest in the same entity;
14-11                (2)  all other similar business or charitable entities
14-12    in the district will receive a similar pecuniary benefit; or
14-13                (3)  the director is a property owner in the district.
14-14          (c)  A director who is also an officer or employee of a
14-15    public entity may not participate in the discussion of or vote on a
14-16    matter regarding a contract with that same public entity.
14-17          (d)  For purposes of this section, a director has a
14-18    substantial interest in a charitable entity in the same manner that
14-19    a person would have a substantial interest in a business entity
14-20    under Section 171.002.
14-21          Sec. 376.463.  POWERS OF DISTRICT. (a)  The district has all
14-22    of the powers necessary or required to accomplish the purposes for
14-23    which the district was created.
14-24          (b)  The district may exercise the powers given to a
14-25    corporation created under Section 4B, Development Corporation Act
14-26    of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).
14-27          (c)  The district may exercise the powers given to a housing
 15-1    finance corporation created under Chapter 394 to provide housing or
 15-2    residential development projects in the district.
 15-3          (d)  The district may impose an ad valorem tax, assessment,
 15-4    or impact fee in accordance with Chapter 375 on all property in the
 15-5    district, including industrial, commercial, or residential
 15-6    property, and may impose an assessment on municipal property in the
 15-7    district to finance or provide improvements and services for a
 15-8    project or activity this subchapter authorizes the district to
 15-9    construct, acquire, improve or provide, or to make payments under a
15-10    contract.  A contract for which the payments are secured wholly or
15-11    partly from ad valorem taxes may not be executed unless the
15-12    imposition of the ad valorem taxes to secure the payment of the
15-13    contract is approved by a majority, or a larger percentage if
15-14    constitutionally required, of the qualified voters in the district
15-15    voting at an election held for that purpose.
15-16          (e)  The district may correct, add to, or delete assessments
15-17    from its assessment rolls and collect assessments after such
15-18    corrections, additions, or deletions after notice and hearing as
15-19    provided by Subchapter F, Chapter 375.
15-20          (f)  All or any part of the area of the district is eligible,
15-21    notwithstanding other statutory criteria, to be included in a tax
15-22    increment reinvestment zone created by the municipality under
15-23    Chapter 311, Tax Code, or included in a tax abatement reinvestment
15-24    zone created by the municipality under Chapter 312, Tax Code.  All
15-25    or any part of the district is also eligible to be included in an
15-26    enterprise zone established by the municipality under Chapter 2303,
15-27    Government Code.
 16-1          Sec. 376.464.  AGREEMENTS. (a)  The district may make an
 16-2    agreement with or accept a donation, grant, or loan from any
 16-3    person.
 16-4          (b)  A municipality, county, or other political subdivision
 16-5    of the state, without further authorization, may contract with the
 16-6    district for the acquisition, construction, improvement,
 16-7    implementation, maintenance, and operation of a project of the
 16-8    district or for providing the services authorized under this
 16-9    subchapter.  A contract under this subsection may:
16-10                (1)  be for a period and include terms on which the
16-11    parties agree;
16-12                (2)  be payable from taxes or any other source of
16-13    revenue that may be available for such purpose; and
16-14                (3)  provide that taxes or other revenues collected at
16-15    a district project or from a person using or purchasing a commodity
16-16    or service at a district project may be paid or rebated to the
16-17    district under the terms of the contract.
16-18          (c)  The implementation of a project is a governmental
16-19    function or service for the purposes of Chapter 791, Government
16-20    Code.
16-21          (d)  To protect the public interest, the district may
16-22    contract with the municipality for the municipality to provide law
16-23    enforcement services in the district for a fee.
16-24          Sec. 376.465.  NONPROFIT CORPORATION. (a)  The board by
16-25    resolution may authorize the creation of a nonprofit corporation to
16-26    assist and act on behalf of the district in implementing a project
16-27    or providing a service authorized by this subchapter.
 17-1          (b)  The board shall appoint the board of directors of a
 17-2    nonprofit corporation created under this section. The board of
 17-3    directors of the nonprofit corporation shall serve in the same
 17-4    manner, term, and conditions as a board of directors of a local
 17-5    government corporation created under Chapter 431, Transportation
 17-6    Code.
 17-7          (c)  A nonprofit corporation created under this section has
 17-8    the powers of and is considered for purposes of this subchapter to
 17-9    be a local government corporation created under Chapter 431,
17-10    Transportation Code.
17-11          (d)  A nonprofit corporation created under this section may
17-12    implement any project and provide any service authorized by this
17-13    subchapter.
17-14          Sec. 376.466.  ANNEXATION. The district may:
17-15                (1)  annex territory as provided by Subchapter C,
17-16    Chapter 375; and
17-17                (2)  annex territory located inside the boundaries of a
17-18    reinvestment zone created by the municipality under Chapter 311,
17-19    Tax Code, if the governing body of the municipality consents to the
17-20    annexation.
17-21          Sec. 376.467.  PETITION REQUIRED FOR FINANCING SERVICES AND
17-22    IMPROVEMENTS. The board may not finance a service or improvement
17-23    project under this subchapter unless a written petition requesting
17-24    the improvement or service has been filed with the board.  The
17-25    petition must be signed by:
17-26                (1)  the owners of a majority of the assessed value of
17-27    real property in the district as determined by the most recent
 18-1    certified county property tax rolls; or
 18-2                (2)  at least 25 persons who own land in the district,
 18-3    if there are more than 25 persons who own property in the district
 18-4    as determined by the most recent certified county property tax
 18-5    rolls.
 18-6          Sec. 376.468.  AUTHORIZATION OF MAINTENANCE TAX. (a)  In
 18-7    addition to the elections the district must hold under Subchapter
 18-8    L, Chapter 375, the district shall hold an election in the manner
 18-9    provided by that subchapter to obtain voter approval before the
18-10    district imposes a maintenance tax or issues bonds payable from ad
18-11    valorem taxes or assessments.
18-12          (b)  The board may include more than one purpose in a single
18-13    proposition at an election.
18-14          (c)  If the district obtains the written consent of 100
18-15    percent of the property owners in the district to impose a
18-16    maintenance tax or issue bonds payable from ad valorem taxes or
18-17    assessments, the district is exempt from the election requirement
18-18    under Subsection (a), and may cancel an election called under
18-19    Subsection (a).
18-20          Sec. 376.469.  MAINTENANCE TAX. (a)  If authorized in
18-21    accordance with Section 376.468, the district may impose and
18-22    collect an annual ad valorem tax on taxable property in the
18-23    district for the maintenance and operation of the district and the
18-24    improvements constructed or acquired by the district or for the
18-25    provision of services.
18-26          (b)  The board shall determine the tax rate.
18-27          Sec. 376.470.  ASSESSMENTS. (a)  The board may impose and
 19-1    collect an assessment for any purpose authorized by this
 19-2    subchapter.
 19-3          (b)  The district may impose assessments against any
 19-4    municipal property in the district. Payment of assessments by other
 19-5    exempt jurisdictions must be established by contract.
 19-6          (c)  The board may apportion the cost of an improvement
 19-7    project or services to be assessed against property in the district
 19-8    on all property in the district according to a finding of the board
 19-9    that the improvement project or services benefit all of the
19-10    property in the district.
19-11          (d)  The board may include two or more types of improvements
19-12    and services in one assessment proceeding.  The board may conduct
19-13    separate assessment proceedings as the district undertakes
19-14    improvement projects or the provision of services.
19-15          (e)  The board may adjust annual assessments for services in
19-16    accordance with an annual budget the board adopts for the provision
19-17    of those services.  An annual adjustment may not exceed the annual
19-18    amount set forth in the original assessment proceedings except
19-19    after public notice and hearing on the increase.
19-20          Sec. 376.471.  ASSESSMENT LIEN. (a)  Assessments, including
19-21    assessments resulting from an addition to or correction of the
19-22    assessment roll by the district, reassessments, penalties and
19-23    interest on an assessment or reassessment, expenses of collection,
19-24    and reasonable attorney's fees incurred by the district:
19-25                (1)  are a first and prior lien against the property
19-26    assessed;
19-27                (2)  are superior to any other lien or claim other than
 20-1    a lien or claim for county, school district, or municipal ad
 20-2    valorem taxes; and
 20-3                (3)  are the personal liability of and charge against
 20-4    the owners of the property even if the owners are not named in the
 20-5    assessment proceedings.
 20-6          (b)  A lien under this section is effective from the date of
 20-7    the resolution of the board imposing the assessment until the
 20-8    assessment is paid.  The board may enforce the lien in the same
 20-9    manner that the board may enforce an ad valorem tax lien against
20-10    real property.
20-11          Sec. 376.472.  UTILITIES. The district may not impose an
20-12    assessment or impact fee on a utility's property.
20-13          Sec. 376.473.  MUNICIPAL APPROVAL. (a)  Except as provided by
20-14    Subsection (b), the district must obtain from the municipality's
20-15    governing body approval of:
20-16                (1)  the issuance of bonds for an improvement project;
20-17    and
20-18                (2)  the plans and specifications of an improvement
20-19    project financed by the bonds.
20-20          (b)  If the district obtains approval from the municipality's
20-21    governing body of a capital improvements budget for a period not to
20-22    exceed five years, the district may finance the capital
20-23    improvements and issue bonds specified in the budget without
20-24    further approval from the municipality.
20-25          (c)  The district must obtain approval from the
20-26    municipality's governing body of the plans and specifications of
20-27    any district improvement project related to the use of land owned
 21-1    by the municipality, an easement granted by the municipality, or a
 21-2    right-of-way of a street, road, or highway.
 21-3          (d)  Except as provided by Section 375.263, a municipality is
 21-4    not obligated to pay any bonds, notes, or other obligations of the
 21-5    district.
 21-6          Sec. 376.474.  DISBURSEMENTS OR TRANSFERS OF FUNDS. The board
 21-7    by resolution shall establish the number of directors' signatures
 21-8    and the procedure required for a disbursement or transfer of the
 21-9    district's money.
21-10          Sec. 376.475.  COMPETITIVE BIDDING LIMIT. Section 375.221
21-11    does not apply to the district unless the contract is for more than
21-12    $25,000.
21-13          Sec. 376.476.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
21-14    OUTSTANDING DEBTS. (a)  The board may vote to dissolve a district
21-15    that has debt. If the vote is in favor of dissolution, the district
21-16    shall remain in existence solely for the limited purpose of
21-17    discharging its debts. The dissolution is effective when all debts
21-18    have been discharged.
21-19          (b)  Section 375.264 does not apply to the district.
21-20          SECTION 2. The legislature finds that:
21-21                (1)  proper and legal notice of the intention to
21-22    introduce this Act, setting forth the general substance of this
21-23    Act, has been published as provided by law, and the notice and a
21-24    copy of this Act have been furnished to all persons, agencies,
21-25    officials, or entities to which they are required to be furnished
21-26    by the constitution and laws of this state, including the governor,
21-27    who has submitted the notice and Act to the Texas Natural Resource
 22-1    Conservation Commission;
 22-2                (2)  the Texas Natural Resource Conservation Commission
 22-3    has filed its recommendations relating to this Act with the
 22-4    governor, lieutenant governor, and speaker of the house of
 22-5    representatives within the required time;
 22-6                (3)  the general law relating to consent by political
 22-7    subdivisions to the creation of districts with conservation,
 22-8    reclamation, and road powers and the inclusion of land in those
 22-9    districts has been complied with; and
22-10                (4)  all requirements of the constitution and laws of
22-11    this state and the rules and procedures of the legislature with
22-12    respect to the notice, introduction, and passage of this Act have
22-13    been fulfilled and accomplished.
22-14          SECTION 3. (a)  The initial board of directors of the Frisco
22-15    Square Management District consists of:
22-16          Position No. 1.  Kathleen A. Seei
22-17                       2.  Maher Maso
22-18                       3.  E. Michael Simpson
22-19                       4.  Joseph Cole McDowell, Jr.
22-20                       5.  Brenda N. McDonald
22-21          (b)  With respect to the initial board members, the members
22-22    appointed for positions one through three serve until July 1, 2003,
22-23    and the members appointed for positions four and five serve until
22-24    July 1, 2005.
22-25          SECTION 4. This Act takes effect September 1, 2001.