1-1 By: Shapiro, Nelson S.B. No. 1782 1-2 (In the Senate - Filed March 27, 2001; March 29, 2001, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 19, 2001, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 7, Nays 0; 1-6 April 19, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1782 By: Shapiro 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of the Frisco Square Management District; 1-11 providing the 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. FRISCO SQUARE MANAGEMENT DISTRICT 1-16 Sec. 376.451. CREATION OF DISTRICT. (a) The Frisco Square 1-17 Management District is created as a special district under Section 1-18 59, Article XVI, Texas Constitution. 1-19 (b) The board by resolution may change the district's name. 1-20 (c) The creation of the district is essential to accomplish 1-21 the purposes of Sections 52 and 52-a, Article III, and Section 59, 1-22 Article XVI, Texas Constitution, and other public purposes stated 1-23 in this subchapter. 1-24 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of 1-25 the district is necessary to promote, develop, encourage, and 1-26 maintain employment, commerce, transportation, housing, tourism, 1-27 recreation, arts, entertainment, economic development, safety, and 1-28 the public welfare in the municipality's central business area. 1-29 (b) The creation of the district and this legislation are 1-30 not to be interpreted to relieve the county or the municipality 1-31 from providing the level of services, as of September 1, 2001, to 1-32 the area in the district or to release the county or the 1-33 municipality from the obligations each entity has to provide 1-34 services to that area. The district is created to supplement and 1-35 not supplant the municipal services provided in the area in the 1-36 district. 1-37 (c) By creating the district and in authorizing the 1-38 municipality, county, and other political subdivisions to contract 1-39 with the district, the legislature has established a program to 1-40 accomplish the public purposes set out in Section 52-a, Article 1-41 III, Texas Constitution. 1-42 Sec. 376.453. DEFINITIONS. In this subchapter: 1-43 (1) "Board" means the board of directors of the 1-44 district. 1-45 (2) "County" means Collin County. 1-46 (3) "District" means the Frisco Square Management 1-47 District. 1-48 (4) "Municipality" means the City of Frisco. 1-49 (5) "Utility" means a person that provides gas, 1-50 electricity, telephone, sewage, or water service to the public. 1-51 Sec. 376.454. BOUNDARIES. The district includes all the 1-52 territory contained within the following described area: 1-53 BEING a 114.8298 acre tract of land situated in the W.B. Watkins 1-54 Survey, Abstract No 1004, the Lewis H. McNeil Survey, Abstract No. 1-55 618 and the Clayton Rogers Survey, Abstract No 1089, all in the 1-56 City of Frisco, Collin County, Texas and being described more 1-57 particularly by metes and bounds as follows: 1-58 BEGINNING at a 1/2 inch iron rod found for the intersection of the 1-59 centerline of Cotton Gin Road with the east right-of-way line of 1-60 the Dallas North Tollway (300 feet R.O.W.), said point being on a 1-61 curve to the right having a central angle of 2 deg. 50 min. 55 1-62 sec., a radius of 3014.79 feet and a chord which bears South 01 1-63 deg. 22 min. 55 sec. East, and a chord distance of 149.88 feet; 1-64 1. THENCE southerly, with the east right-of-way line of 2-1 said Dallas North Tollway and said curve, through an arc distance 2-2 of 149.89 feet to the end of said curve at a point of tangency; 2-3 2. THENCE South 00 deg. 02 min. 33 sec. West, with the 2-4 east right-of-way line of said Dallas North Tollway, a distance of 2-5 607.59 feet to the beginning of,, a tangent circular curve to the 2-6 left having a central angle of 9 deg. 09 min. 55 sec., a radius of 2-7 2714.79 feet and a chord which bears South 04 deg. 32 min. 25 sec. 2-8 East, and a chord distance of 433.81 feet; 2-9 3. THENCE southerly, with the east right-of-way line of 2-10 said Dallas North Tollway and said curve, through an arc distance 2-11 of 434.27 feet to the end of said curve; 2-12 4. THENCE perpendicular to the right-of-way of Dallas 2-13 North Tollway, South 80 deg. 52 min. 37 sec. West, at a distance of 2-14 300 feet passing the common west right-of- way of said Dallas North 2-15 Tollway and the eastern line of that certain 129.759 acre tract of 2-16 land conveyed to Lill Yang, Trustee, as recorded in Volume 3063, 2-17 Page 145, D.R.C.C.T., and continuing, in all, a total distance of 2-18 320.00 feet to a point said point being on a circular curve to the 2-19 right having a central angle of 9 deg.09 min. 55 sec., a radius of 2-20 3034.79 feet, a chord which bears North 4 deg. 32 min. 25 sec. 2-21 West, and a chord distance of 484.95 feet: 2-22 5. THENCE northerly, 20 feet parallel with said west 2-23 right- of-way line of the Dallas North Tollway and said curve, 2-24 through an arc distance of 485 46 feet to the end of said curve at 2-25 a point of tangency; 2-26 6. THENCE North 00 deg. 02 min. 33 sec. East, 20 feet 2-27 .parallel with said west right-of-way line, a distance of 607.59 2-28 feet to the beginning of a tangent curve to the left having a 2-29 central angle of 4 deg. 26 min. 55 sec., a radius of 2694 79 feet, 2-30 a chord which bears North 2 deg. 10 min. 55 sec. West, and a chord 2-31 distance of 209 17 feet; 2-32 7. THENCE northerly, 20 feet parallel with the west 2-33 right-of-way line of said Dallas North Tollway and said curve, 2-34 through an arc distance of 209 22 feet to the end of said curve; 2-35 8. THENCE North 89 deg. 53 min. 53 sec. East at a distance 2-36 of 20 03 feet passing the west right-of-way of said Dallas North 2-37 Tollway, and at a distance of 320 78 feet passing the east 2-38 right-of-way line of said Dallas North Tollway, and continuing, in 2-39 all, a distance of 601.01 feet to a point; 2-40 9. THENCE North 41 deg. 38 min. 52 sec. East, a distance 2-41 of 33 30 feet to a point; 2-42 10. THENCE North 6 deg. 36 min. 16 sec. West, a distance of 2-43 974 41 feet to a point 2-44 11. THENCE South 83 deg. 23 min. 44 sec West, .-a distance 2-45 of 270 00 feet to a .point, 2-46 12. THENCE South 38 deg. 23 min. 44 sec. West, a distance 2-47 of 28.28 feet to a point 2-48 13. THENCE South 83 deg. 23 min. 44 sec. West, a distance 2-49 of 10.00 feet to a point on the east right-of-way line of said 2-50 Dallas North Tollway; 2-51 14. THENCE North 06 deg. 36 min. 16 sec. West with the east 2-52 right-of-way line of said Dallas North Tollway, a distance of 2-53 1606.36 feet to the intersection of the east right-of-way line of 2-54 said Dallas North Tollway with the, proposed north right-of-way 2-55 line of Farm to Market Road 720 (F.M.720, variable width R. O. W.); 2-56 THENCE with the proposed north right-of-way line of said F M 720, 2-57 the folio-wing, metes and bounds: 2-58 15. South 48 deg. 08 min. 26 sec. East, a distance of 37 43 2-59 feet to a point; 2-60 16. South 89 deg. 40 min. 36 sec. East, a distance of 20.66 2-61 feet to a points said point being on a tangent curve to the left 2-62 having a central angle of 4 deg. 11 min 37 sec, radius of 2430.00 2-63 feet, a chord which bears North 88 deg. 13 min 36 sec. East, and a 2-64 distance of 177.82 feet; 2-65 17. Easterly, with said curve, through an arc distance of 2-66 177.86 feet to the end of said curve; 2-67 18. South 86 deg. 13 min. 33 sec. East, a distance of 97.72 2-68 feet to a point; 2-69 19. North 86 deg. 07 min. 47 sec. East, a distance of 3-1 1548.06 feet to a point; 3-2 20. South 20 deg. 38 min. 35 sec. East, a distance of 10.44 3-3 feet to a point;, 3-4 21. North 86 deg. 07 min. 47 sec. East, a distance of 28.75 3-5 feet to a point, said point being on a tangent curve to the left 3-6 having a central angle of 10 deg. 51 min. 32 sec., a radius of 3-7 2722.02 feet, a chord which bears South 88 deg. 26 min. 27 sec. 3-8 East, and a chord distance of 515.11 feet; 3-9 22. Easterly, with said curve,. through an arc distance of 3-10 515.88 feet to a point; 3-11 23. South 78 deg. 05 min. 56 sec. East, a distance of 3-12 555.37 feet to a point; 3-13 24. THENCE leaving the proposed north right-of-way line of 3-14 said F.M. 720, South 11 deg. 54 min. 04 sec. West, a distance of 3-15 80.00 feet to a point; 3-16 25. THENCE South 12 deg;. 16 min. 44 sec. West, a distance 3-17 of 81.56 feet to a point; 3-18 26. THENCE South 77 deg. 53 min. 30 sec. East, a distance 3-19 of 61.81 feet to a point; 3-20 27. THENCE South 78 deg. 08 min. 24 sec. East, a distance 3-21 of 138.19 feet to a point on the west right-of-way line of the 3-22 Burlington Northern and Santa Fe Railroad; 3-23 28. THENCE South 12 deg. 16 min. 44 sec. West, with the 3-24 west right-of-way line of said Burlington Northern and Santa Fe 3-25 Railroad, a distance of 210.00 feet to the intersection of the west 3-26 right-of-way line of said Burlington Northern and Santa Fe Railroad 3-27 with the north right-of-way line of Main Street (80 feet R.O.W.); 3-28 29. THENCE South 12 deb. 13 min. 18 sec. West, with the 3-29 west right-of-way line of said Burlington Northern and Santa Fe 3-30 Railroad, a distance of 80.52 feet to the intersection of the west 3-31 right-of-way line of said Burlington Northern and Santa Fe Railroad 3-32 with the south right-of-way line of said Main Street; 3-33 30. THENCE South 12 deg. 51 min. 45 sec. West, with the 3-34 west right-of-way line of said Burlington Northern and Santa Fe 3-35 Railroad, a distance of 359.59 feet to the intersection of the west 3-36 right-of-way line of said Burlington Northern and Santa Fe Railroad 3-37 with the south right-of-way line of Elm Street (60 feet R.O.W.); 3-38 31. THENCE North 77 deg. 42 min. 06 see. West with said 3-39 south right-of-way line of Elm Street a distance of 296.41 feet to 3-40 the intersection of the south right-of-way line of said Elm Street 3-41 with the east right-of-way line of John W Elliot Drive (60 feet 3-42 R.O.W.); 3-43 32. THENCE South 12 deg. 16 min. 44 sec West, with the east 3-44 right-of-way line of said John W. Elliot Drive, a distance of 3-45 479.77 feet to a .point; 3-46 33. THENCE South 83 deg. 23 min. 44 sec. West, a distance 3-47 of 472.56 feet to a point; 3-48 34. THENCE South 06 deg. 36 min. 16 sec East, a distance of 3-49 270 50 feet to a point; 3-50 35. THENCE North 83 deg. 23 min. 44 see. East, a distance 3-51 of 316 62 feet to a point; 3-52 36. THENCE North 12 deg. 16 min. 44 sec East, a distance of 3-53 65 48 feet to a point; 3-54 37. THENCE South 77 deg. 43 min. 16 sec. East a distance of 3-55 281.14 feet to a 1/2 inch iron rod found on the west right-of-way 3-56 line of said Burlington Northern and Santa Fe Railroad; 3-57 38. THENCE South 19 deg. 00 min. 34 sec West, with the west 3-58 right-of-way line of said Burlington Northern and Santa Fe 3-59 Railroad, a distance of 96614 feet to a point; 3-60 39. THENCE North 06 deg. 36 min. 16 sec West, -a distance 3-61 of 174 73 feet to a point; 3-62 40. THENCE South 89 deg. 53 min. 53 sec West, a distance of 3-63 5 19 feet to a point; 3-64 41. THENCE North 06 deg. 36 min. 16 sec West, a distance of 3-65 586 41 feet to a point; 3-66 42. THENCE South 83 deg. 23 min. 44 sec. West- a distance 3-67 of 325 50 feet to a point; 3-68 43. THENCE South 06 deg. 36 min. 16 sec East, a distance of 3-69 549 31 feet to a point; 4-1 44. THENCE South 89 deg. 53 min 53 sec West, a distance of 4-2 8.56 feet to a point; 4-3 45. THENCE South 06 deg. 36 min 16 sec East, a distance of 4-4 272 91 feet to a point in the centerline of said Cotton Gin Road; 4-5 46. THENCE South 89 deg. 53 min. 53 sec. West, with the 4-6 centerline of said Cotton in Road, a distance of 56.36 feet to a 4-7 point; 4-8 47. THENCE North 06 deg. 36 min. 16 sec. West, a distance 4-9 of 265.87 feet to a point; 4-10 48. THENCE South 83 deg. 23 min. 44 sec. West, a distance 4-11 of 8.50 feet to a point; 4-12 49. THENCE North 06 deg. 36 min. 16 sec. West, a distance 4-13 of 549.00 feet to a point; 4-14 50. THENCE South 83 den:. 23 min. 44 sec. West, a distance 4-15 of 147.00 feet to a point; 4-16 51. THENCE North 06 deg. 36 min. 16 sec. West, a distance 4-17 of 48.50 feet to a point; 4-18 52. THENCE North 83 deg. 23 min. 44 sec. East a distance of 4-19 9.50 feet to a point; 4-20 53. THENCE North 06 deg. 36 min. 16 sec. West, a distance 4-21 of 41.50 feet to a point; 4-22 54. THENCE South 83 deg. 23 min. 44 sec. West, a distance 4-23 of 7.00 feet to a point; 4-24 55. THENCE North 06 deg. 36 min. 16 sec. West, a distance 4-25 of 319.00 feet to a point; 4-26 56. THENCE South 83 deg. 23 min. 44 sec. West, distance of 4-27 1216.51 feet to a point; 4-28 57. THENCE South 06 deg. 36 min. 16 sec. East, a distance 4-29 of 1067.78 feet to a point in the centerline of said Cotton Gin 4-30 Road; 4-31 58. THENCE South 89 deg. 54 min. 01 sec. West, with the 4-32 centerline of said Cotton Gin Road a distance of 379.06 feet to the 4-33 POINT OF BEGINNING and containing 5,001,987 square feet or 114.8298 4-34 acres of land. 4-35 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 4-36 facilities, and improvements owned by a utility. 4-37 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 4-38 boundaries and field notes of the district form a closure. If a 4-39 mistake is made in the field notes or in copying the field notes in 4-40 the legislative process, it does not affect the district's: 4-41 (1) organization, existence, or validity; 4-42 (2) right to issue any type of bond or other 4-43 obligation for the purposes for which the district is created or to 4-44 pay the principal of and interest on a bond; 4-45 (3) right to impose or collect assessments or taxes; 4-46 or 4-47 (4) legality or operation. 4-48 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. 4-49 (a) All the land and other property included in the district will 4-50 be benefited by the improvements and services to be provided by the 4-51 district under powers conferred by Sections 52 and 52-a, Article 4-52 III, and Section 59, Article XVI, Texas Constitution, and other 4-53 powers granted under this subchapter, and the district is created 4-54 to serve a public use and benefit. 4-55 (b) The creation of the district is in the public interest 4-56 and is essential to: 4-57 (1) further the public purposes of the development and 4-58 diversification of the economy of the state; and 4-59 (2) eliminate unemployment and underemployment and 4-60 develop or expand transportation and commerce. 4-61 (c) The district will: 4-62 (1) promote the health, safety, and general welfare of 4-63 residents, employers, employees, visitors, consumers in the 4-64 district, and the general public; 4-65 (2) provide needed funding for the municipality's 4-66 central business area extension to the west to preserve, maintain, 4-67 and enhance the economic health and vitality of the area as a 4-68 community and business center and to provide a government center 4-69 for the municipality; 5-1 (3) further promote the health, safety, and general 5-2 welfare of residents, employers, employees, visitors, consumers in 5-3 the district, and the general public by providing, maintaining, and 5-4 operating attractive, safe, and convenient street and road 5-5 improvements and off-street parking facilities and necessary water, 5-6 sewer, and drainage facilities to serve the area within the 5-7 district; and 5-8 (4) further promote the health, safety, welfare, and 5-9 enjoyment of the public by providing pedestrian ways, parks, and 5-10 off-street parking and by landscaping and developing certain areas 5-11 in the district, which are necessary for the restoration, 5-12 preservation, and enhancement of scenic and aesthetic beauty. 5-13 (d) Pedestrian ways along or across a street, at grade or 5-14 above or below the surface, and street lighting, street 5-15 landscaping, and street art objects are parts of and necessary 5-16 components of a street and are considered to be a street or road 5-17 improvement. 5-18 (e) The district will not act as the agent or 5-19 instrumentality of any private interest, even though many private 5-20 interests will be benefited by the district, as will the general 5-21 public. 5-22 (f) Each improvement project or service authorized by this 5-23 subchapter is essential to carry out a public purpose and will 5-24 benefit all land and property in the district, the employees, 5-25 employers, and consumers of the district, and the general public. 5-26 Sec. 376.457. APPLICATION OF OTHER LAW. (a) Except as 5-27 otherwise provided by this subchapter: 5-28 (1) Chapter 375 applies to the district, its governing 5-29 body, and its employees; and 5-30 (2) the district has the rights and powers of a 5-31 district created under Chapter 375. 5-32 (b) If any provision of a law referenced in this subchapter 5-33 is in conflict with or is inconsistent with this subchapter, this 5-34 subchapter prevails. Any law referenced in this subchapter that is 5-35 not in conflict or inconsistent with this subchapter is adopted and 5-36 incorporated by reference. 5-37 Sec. 376.458. LIBERAL CONSTRUCTION OF SUBCHAPTER. This 5-38 subchapter shall be liberally construed in conformity with the 5-39 findings and purposes stated in this subchapter. 5-40 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 5-41 district is governed by a board of five appointed directors and 5-42 three members serving ex officio. The appointed members serve 5-43 staggered terms of four years, with two directors' terms expiring 5-44 July 1 of an odd-numbered year and three directors' terms expiring 5-45 July 1 of the following odd-numbered year. 5-46 (b) A position on the board shall not be construed to be a 5-47 civil office of emolument for any purpose, including a purpose 5-48 described in Section 40, Article XVI, Texas Constitution. 5-49 Sec. 376.460. APPOINTMENT OF DIRECTORS. (a) The governing 5-50 body of the municipality shall appoint successor directors who meet 5-51 the qualifications of Subchapter D, Chapter 375. The governing 5-52 body of the municipality shall appoint a director to fill a vacancy 5-53 on the board. 5-54 (b) Notwithstanding the common law doctrine of 5-55 incompatibility, members of the governing body of the municipality 5-56 may be appointed to the board. The term of a director who is also 5-57 a member of the governing body of the municipality shall expire 5-58 when the member's term on the governing body of the municipality 5-59 expires, provided that the person may be reappointed to the board 5-60 of directors to complete the unexpired term on the board. 5-61 (c) A person may not be appointed to the board if the 5-62 appointment of that person would result in fewer than three of the 5-63 directors residing in the municipality. 5-64 (d) District directors are public officials entitled to 5-65 governmental immunity for their official actions. 5-66 (e) The governing body of the municipality after notice and 5-67 hearing may remove a director for misconduct or failure to carry 5-68 out the director's duties on a petition by a majority of the 5-69 remaining directors. 6-1 Sec. 376.461. EX OFFICIO BOARD MEMBERS. (a) The following 6-2 persons shall serve ex officio as nonvoting directors: 6-3 (1) the manager of the municipality; 6-4 (2) the financial director of the municipality; and 6-5 (3) the planning director of the municipality. 6-6 (b) If any of the offices described in Subsection (a) are 6-7 renamed, changed, or abolished, the governing body of the 6-8 municipality may appoint another officer or employee of the 6-9 municipality that performs duties comparable to those performed by 6-10 the officer described in Subsection (a). 6-11 Sec. 376.462. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. 6-12 (a) Except as provided by Section 376.461 or this section: 6-13 (1) a director may participate in all board votes and 6-14 decisions; and 6-15 (2) Chapter 171 governs conflicts of interest for 6-16 board members. 6-17 (b) Section 171.004 does not apply to the district. A 6-18 director who has a substantial interest in a business or charitable 6-19 entity that will receive a pecuniary benefit from a board action 6-20 shall file a one-time affidavit declaring the interest. An 6-21 additional affidavit is not required if the director's interest 6-22 changes. After the affidavit is filed with the board secretary, 6-23 the director may participate in a discussion or vote on that action 6-24 if: 6-25 (1) a majority of the directors have a similar 6-26 interest in the same entity; 6-27 (2) all other similar business or charitable entities 6-28 in the district will receive a similar pecuniary benefit; or 6-29 (3) the director is a property owner in the district. 6-30 (c) A director who is also an officer or employee of a 6-31 public entity may not participate in the discussion of or vote on a 6-32 matter regarding a contract with that same public entity. 6-33 (d) For purposes of this section, a director has a 6-34 substantial interest in a charitable entity in the same manner that 6-35 a person would have a substantial interest in a business entity 6-36 under Section 171.002. 6-37 Sec. 376.463. POWERS OF DISTRICT. (a) The district has all 6-38 of the powers necessary or required to accomplish the purposes for 6-39 which the district was created. 6-40 (b) The district may exercise the powers given to a 6-41 corporation created under Section 4B, Development Corporation Act 6-42 of 1979 (Article 5190.6, Vernon's Texas Civil Statutes). 6-43 (c) The district may exercise the powers given to a housing 6-44 finance corporation created under Chapter 394 to provide housing or 6-45 residential development projects in the district. 6-46 (d) The district may impose an ad valorem tax, assessment, 6-47 or impact fee in accordance with Chapter 375 on all property in the 6-48 district, including industrial, commercial, or residential 6-49 property, and may impose an assessment on municipal property in the 6-50 district to finance or provide improvements and services for a 6-51 project or activity this subchapter authorizes the district to 6-52 construct, acquire, improve, or provide or to make payments under a 6-53 contract. A contract for which the payments are secured wholly or 6-54 partly from ad valorem taxes may not be executed unless the 6-55 imposition of the ad valorem taxes to secure the payment of the 6-56 contract is approved by a majority, or a larger percentage if 6-57 constitutionally required, of the qualified voters in the district 6-58 voting at an election held for that purpose. 6-59 (e) The district may correct, add to, or delete assessments 6-60 from its assessment rolls and collect assessments after such 6-61 corrections, additions, or deletions after notice and hearing as 6-62 provided by Subchapter F, Chapter 375. 6-63 (f) All or any part of the area of the district is eligible, 6-64 notwithstanding other statutory criteria, to be included in a tax 6-65 increment reinvestment zone created by the municipality under 6-66 Chapter 311, Tax Code, or included in a tax abatement reinvestment 6-67 zone created by the municipality under Chapter 312, Tax Code. All 6-68 or any part of the district is also eligible to be included in an 6-69 enterprise zone established by the municipality under Chapter 2303, 7-1 Government Code. 7-2 Sec. 376.464. AGREEMENTS. (a) The district may make an 7-3 agreement with or accept a donation, grant, or loan from any 7-4 person. 7-5 (b) A municipality, county, or other political subdivision 7-6 of the state, without further authorization, may contract with the 7-7 district for the acquisition, construction, improvement, 7-8 implementation, maintenance, and operation of a project of the 7-9 district or for providing the services authorized under this 7-10 subchapter. A contract under this subsection may: 7-11 (1) be for a period and include terms on which the 7-12 parties agree; 7-13 (2) be payable from taxes or any other source of 7-14 revenue that may be available for such purpose; and 7-15 (3) provide that taxes or other revenues collected at 7-16 a district project or from a person using or purchasing a commodity 7-17 or service at a district project may be paid or rebated to the 7-18 district under the terms of the contract. 7-19 (c) The implementation of a project is a governmental 7-20 function or service for the purposes of Chapter 791, Government 7-21 Code. 7-22 (d) To protect the public interest, the district may 7-23 contract with the municipality for the municipality to provide law 7-24 enforcement services in the district for a fee. 7-25 Sec. 376.465. NONPROFIT CORPORATION. (a) The board by 7-26 resolution may authorize the creation of a nonprofit corporation to 7-27 assist and act on behalf of the district in implementing a project 7-28 or providing a service authorized by this subchapter. 7-29 (b) The board shall appoint the board of directors of a 7-30 nonprofit corporation created under this section. The board of 7-31 directors of the nonprofit corporation shall serve in the same 7-32 manner, term, and conditions as a board of directors of a local 7-33 government corporation created under Chapter 431, Transportation 7-34 Code. 7-35 (c) A nonprofit corporation created under this section has 7-36 the powers of and is considered for purposes of this subchapter to 7-37 be a local government corporation created under Chapter 431, 7-38 Transportation Code. 7-39 (d) A nonprofit corporation created under this section may 7-40 implement any project and provide any service authorized by this 7-41 subchapter. 7-42 Sec. 376.466. ANNEXATION. The district may: 7-43 (1) annex territory as provided by Subchapter C, 7-44 Chapter 375; and 7-45 (2) annex territory located inside the boundaries of a 7-46 reinvestment zone created by the municipality under Chapter 311, 7-47 Tax Code, if the governing body of the municipality consents to the 7-48 annexation. 7-49 Sec. 376.467. PETITION REQUIRED FOR FINANCING SERVICES AND 7-50 IMPROVEMENTS. The board may not finance a service or improvement 7-51 project under this subchapter unless a written petition requesting 7-52 the improvement or service has been filed with the board. The 7-53 petition must be signed by: 7-54 (1) the owners of a majority of the assessed value of 7-55 real property in the district as determined by the most recent 7-56 certified county property tax rolls; or 7-57 (2) at least 25 persons who own land in the district, 7-58 if there are more than 25 persons who own property in the district 7-59 as determined by the most recent certified county property tax 7-60 rolls. 7-61 Sec. 376.468. AUTHORIZATION OF MAINTENANCE TAX. (a) In 7-62 addition to the elections the district must hold under Subchapter 7-63 L, Chapter 375, the district shall hold an election in the manner 7-64 provided by that subchapter to obtain voter approval before the 7-65 district imposes a maintenance tax or issues bonds payable from ad 7-66 valorem taxes or assessments. 7-67 (b) The board may include more than one purpose in a single 7-68 proposition at an election. 7-69 (c) If the district obtains the written consent of 100 8-1 percent of the property owners in the district to impose a 8-2 maintenance tax or issue bonds payable from ad valorem taxes or 8-3 assessments, the district is exempt from the election requirement 8-4 under Subsection (a) and may cancel an election called under 8-5 Subsection (a). 8-6 Sec. 376.469. MAINTENANCE TAX. (a) If authorized in 8-7 accordance with Section 376.468, the district may impose and 8-8 collect an annual ad valorem tax on taxable property in the 8-9 district for the maintenance and operation of the district and the 8-10 improvements constructed or acquired by the district or for the 8-11 provision of services. 8-12 (b) The board shall determine the tax rate. 8-13 Sec. 376.470. ASSESSMENTS. (a) The board may impose and 8-14 collect an assessment for any purpose authorized by this 8-15 subchapter. 8-16 (b) The district may impose assessments against any 8-17 municipal property in the district. Payment of assessments by 8-18 other exempt jurisdictions must be established by contract. 8-19 (c) The board may apportion the cost of an improvement 8-20 project or services to be assessed against property in the district 8-21 on all property in the district according to a finding of the board 8-22 that the improvement project or services benefit all of the 8-23 property in the district. 8-24 (d) The board may include two or more types of improvements 8-25 and services in one assessment proceeding. The board may conduct 8-26 separate assessment proceedings as the district undertakes 8-27 improvement projects or the provision of services. 8-28 (e) The board may adjust annual assessments for services in 8-29 accordance with an annual budget the board adopts for the provision 8-30 of those services. An annual adjustment may not exceed the annual 8-31 amount set forth in the original assessment proceedings except 8-32 after public notice and hearing on the increase. 8-33 Sec. 376.471. ASSESSMENT LIEN. (a) Assessments, including 8-34 assessments resulting from an addition to or correction of the 8-35 assessment roll by the district, reassessments, penalties and 8-36 interest on an assessment or reassessment, expenses of collection, 8-37 and reasonable attorney's fees incurred by the district: 8-38 (1) are a first and prior lien against the property 8-39 assessed; 8-40 (2) are superior to any other lien or claim other than 8-41 a lien or claim for county, school district, or municipal ad 8-42 valorem taxes; and 8-43 (3) are the personal liability of and charge against 8-44 the owners of the property even if the owners are not named in the 8-45 assessment proceedings. 8-46 (b) A lien under this section is effective from the date of 8-47 the resolution of the board imposing the assessment until the 8-48 assessment is paid. The board may enforce the lien in the same 8-49 manner that the board may enforce an ad valorem tax lien against 8-50 real property. 8-51 Sec. 376.472. UTILITIES. The district may not impose an 8-52 assessment or impact fee on a utility's property. 8-53 Sec. 376.473. MUNICIPAL APPROVAL. (a) Except as provided 8-54 by Subsection (b), the district must obtain from the municipality's 8-55 governing body approval of: 8-56 (1) the issuance of bonds for an improvement project; 8-57 and 8-58 (2) the plans and specifications of an improvement 8-59 project financed by the bonds. 8-60 (b) If the district obtains approval from the municipality's 8-61 governing body of a capital improvements budget for a period not to 8-62 exceed five years, the district may finance the capital 8-63 improvements and issue bonds specified in the budget without 8-64 further approval from the municipality. 8-65 (c) The district must obtain approval from the 8-66 municipality's governing body of the plans and specifications of 8-67 any district improvement project related to the use of land owned 8-68 by the municipality, an easement granted by the municipality, or a 8-69 right-of-way of a street, road, or highway. 9-1 (d) Except as provided by Section 375.263, a municipality is 9-2 not obligated to pay any bonds, notes, or other obligations of the 9-3 district. 9-4 Sec. 376.474. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 9-5 board by resolution shall establish the number of directors' 9-6 signatures and the procedure required for a disbursement or 9-7 transfer of the district's money. 9-8 Sec. 376.475. COMPETITIVE BIDDING LIMIT. Section 375.221 9-9 does not apply to the district unless the contract is for more than 9-10 $25,000. 9-11 Sec. 376.476. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 9-12 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 9-13 that has debt. If the vote is in favor of dissolution, the 9-14 district shall remain in existence solely for the limited purpose 9-15 of discharging its debts. The dissolution is effective when all 9-16 debts have been discharged. 9-17 (b) Section 375.264 does not apply to the district. 9-18 SECTION 2. The legislature finds that: 9-19 (1) proper and legal notice of the intention to 9-20 introduce this Act, setting forth the general substance of this 9-21 Act, has been published as provided by law, and the notice and a 9-22 copy of this Act have been furnished to all persons, agencies, 9-23 officials, or entities to which they are required to be furnished 9-24 by the constitution and laws of this state, including the governor, 9-25 who has submitted the notice and Act to the Texas Natural Resource 9-26 Conservation Commission; 9-27 (2) the Texas Natural Resource Conservation Commission 9-28 has filed its recommendations relating to this Act with the 9-29 governor, lieutenant governor, and speaker of the house of 9-30 representatives within the required time; 9-31 (3) the general law relating to consent by political 9-32 subdivisions to the creation of districts with conservation, 9-33 reclamation, and road powers and the inclusion of land in those 9-34 districts has been complied with; and 9-35 (4) all requirements of the constitution and laws of 9-36 this state and the rules and procedures of the legislature with 9-37 respect to the notice, introduction, and passage of this Act have 9-38 been fulfilled and accomplished. 9-39 SECTION 3. (a) The initial board of directors of the Frisco 9-40 Square Management District consists of: 9-41 Position No. 1. Kathleen A. Seei 9-42 2. Maher Maso 9-43 3. E. Michael Simpson 9-44 4. Joseph Cole McDowell, Jr. 9-45 5. Brenda N. McDonald 9-46 (b) With respect to the initial board members, the members 9-47 appointed for positions one through three serve until July 1, 2003, 9-48 and the members appointed for positions four and five serve until 9-49 July 1, 2005. 9-50 SECTION 4. This Act takes effect immediately if it receives 9-51 a vote of two-thirds of all the members elected to each house, as 9-52 provided by Section 39, Article III, Texas Constitution. If this 9-53 Act does not receive the vote necessary for immediate effect, this 9-54 Act takes effect September 1, 2001. 9-55 * * * * *