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                                  * * * * *