82R3333 NAJ-F
	By: Christian	H.B. No. 863

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Timber Springs Municipal Management
	District; providing authority to impose a tax, levy an assessment,
	and issue bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 4, Special District Local Laws
	Code, is amended by adding Chapter 3897 to read as follows:
	CHAPTER 3897.  TIMBER SPRINGS MUNICIPAL MANAGEMENT DISTRICT
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 3897.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "City" means the City of Nacogdoches, Texas.
	(3)  "County" means Nacogdoches County, Texas.
	(4)  "Director" means a board member.
	(5)  "District" means the Timber Springs Municipal
	Management District.
	(6)  "Improvement project" means a project authorized
	by Subchapter C-1.
	Sec. 3897.002.  CREATION AND NATURE OF DISTRICT. The
	district is a special district created under Section 59, Article
	XVI, Texas Constitution.
	Sec. 3897.003.  PURPOSE; LEGISLATIVE FINDINGS. (a) The
	creation of the district is essential to accomplish the purposes of
	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
	Texas Constitution, and other public purposes stated in this
	chapter. By creating the district and in authorizing the city and
	other political subdivisions to contract with the district, the
	legislature has established a program to accomplish the public
	purposes set out in Section 52-a, Article III, Texas Constitution.
	(b)  The creation of the district is necessary to promote,
	develop, encourage, and maintain employment, commerce,
	transportation, housing, tourism, recreation, the arts,
	entertainment, economic development, safety, and the public
	welfare in the district.
	(c)  This chapter and the creation of the district may not be
	interpreted to relieve the city or county from providing the level
	of services provided as of the effective date of the Act enacting
	this chapter to the area in the district.  The district is created
	to supplement and not to supplant city and county services provided
	in the district.
	Sec. 3897.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
	The district is created to serve a public use and benefit.
	(b)  All land and other property included in the district
	will benefit from the improvements and services to be provided by
	the district under powers conferred by Sections 52 and 52-a,
	Article III, and Section 59, Article XVI, Texas Constitution, and
	other powers granted under this chapter.
	(c)  The creation of the district is in the public interest
	and is essential to further the public purposes of:
	(1)  developing and diversifying the economy of the
	state;
	(2)  eliminating unemployment and underemployment;
	(3)  providing quality residential housing; and
	(4)  developing or expanding transportation and
	commerce.
	(d)  The district will:
	(1)  promote the health, safety, and general welfare of
	residents, employers, potential employees, employees, visitors,
	and consumers in the district, and of the public;
	(2)  provide needed funding for the district to
	preserve, maintain, and enhance the economic health and vitality of
	the district territory as a residential community and business
	center; and
	(3)  promote the health, safety, welfare, and enjoyment
	of the public by providing pedestrian ways and by landscaping and
	developing certain areas in the district, which are necessary for
	the restoration, preservation, and enhancement of scenic beauty.
	(e)  Pedestrian ways along or across a street, whether at
	grade or above or below the surface, and street lighting, street
	landscaping, vehicle parking, and street art objects are parts of
	and necessary components of a street and are considered to be an
	improvement project that includes a street or road improvement.
	(f)  The district will not act as the agent or
	instrumentality of any private interest even though the district
	will benefit many private interests as well as the public.
	Sec. 3897.005.  DISTRICT TERRITORY. (a) The district is
	composed of the territory described by Section 2 of the Act enacting
	this chapter, as that territory may have been modified under
	Section 3897.111 or other law.
	(b)  A mistake in the field notes of the district contained
	in Section 2 of the Act enacting this chapter or in copying the
	field notes in the legislative process does not in any way affect:
	(1)  the district's organization, existence, or
	validity;
	(2)  the district's right to contract, including the
	right to issue any type of bond or other obligation for a purpose
	for which the district is created;
	(3)  the district's right to impose or collect an
	assessment, tax, or any other revenue; or
	(4)  the legality or operation of the board.
	Sec. 3897.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
	(a) All or any part of the area of the district is eligible to be
	included in:
	(1)  a tax increment reinvestment zone created by the
	city under Chapter 311, Tax Code;
	(2)  a tax abatement reinvestment zone created by the
	city under Chapter 312, Tax Code; or
	(3)  an enterprise zone created by the city under
	Chapter 2303, Government Code.
	(b)  If the city creates a tax increment reinvestment zone
	described by Subsection (a), the city and the board of directors of
	the zone, by contract with the district, may grant money deposited
	in the tax increment fund to the district to be used by the district
	for the purposes permitted for money granted to a corporation under
	Section 380.002(b), Local Government Code, including the right to
	pledge the money as security for any bonds issued by the district
	for an improvement project.
	Sec. 3897.007.  ACTIVITIES NOT SUBJECT TO JURISDICTION OR
	SUPERVISION OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY.  The
	district's activities are not subject to the jurisdiction or
	supervision of the Texas Commission on Environmental Quality under
	Chapter 49, Water Code, Chapter 375, Local Government Code, or any
	other law.
	[Sections 3897.008-3897.050 reserved for expansion]
	SUBCHAPTER B.  BOARD OF DIRECTORS
	Sec. 3897.051.  GOVERNING BODY; TERMS. The district is
	governed by a board of five directors who serve staggered terms of
	four years, with two or three directors' terms expiring May 31 of
	each even-numbered year.
	Sec. 3897.052.  ELECTION DATE. The board shall hold an
	election for directors on the uniform election date in May in
	even-numbered years.
	Sec. 3897.053.  ELIGIBILITY. (a) To be qualified to serve
	as a director, a person must be:
	(1)  an owner of real property in the district; or
	(2)  an employee of a person described by Subdivision
	(1).
	(b)  Section 49.052, Water Code, does not apply to the
	district.
	Sec. 3897.054.  VACANCY. (a)  The remaining directors shall
	fill a vacancy on the board by appointing a person who meets the
	qualifications prescribed by Section 3897.053.
	(b)  If there are fewer than three directors, the governing
	body of the city shall appoint the necessary number of directors to
	fill all board vacancies.
	Sec. 3897.055.  DIRECTOR'S OATH OR AFFIRMATION. A director
	shall file the director's oath or affirmation of office with the
	district, and the district shall retain the oath or affirmation in
	the district records.
	Sec. 3897.056.  OFFICERS. The board shall elect from among
	the directors a chair, a vice chair, and a secretary.
	Sec. 3897.057.  COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
	EXPENSES. (a) The district may compensate each director in an
	amount not to exceed $50 for each board meeting. The total amount
	of compensation a director may receive each year may not exceed
	$2,000.
	(b)  A director is entitled to reimbursement for necessary
	and reasonable expenses incurred in carrying out the duties and
	responsibilities of a director.
	Sec. 3897.058.  INITIAL DIRECTORS. (a) The initial board
	consists of the following directors:
	Pos. No. Name of Director
	1 ________________
	2 ________________
	3 ________________
	4 ________________
	5 ________________
	(b)  Of the initial directors, the terms of directors
	appointed for positions 1 and 2 expire May 31, 2012, and the terms
	of directors appointed for positions 3 through 5 expire May 31,
	2014.
	(c)  This section expires September 1, 2014.
	[Sections 3897.059-3897.100 reserved for expansion]
	SUBCHAPTER C.  POWERS AND DUTIES
	Sec. 3897.101.  IMPROVEMENT PROJECTS. The district may
	provide, or it may enter into contracts with a governmental or
	private entity to provide, the improvement projects described by
	Subchapter C-1 or activities in support of or incidental to those
	projects.
	Sec. 3897.102.  WATER DISTRICT POWERS. The district has the
	powers provided by the general laws relating to conservation and
	reclamation districts created under Section 59, Article XVI, Texas
	Constitution, including Chapters 49 and 54, Water Code.
	Sec. 3897.103.  ROAD DISTRICT POWERS; EXCEPTION.  (a)
	Except as provided by Subsection (b), the district has the powers
	provided by the general laws relating to road districts and road
	utility districts created under Section 52(b), Article III, Texas
	Constitution, including Chapter 441, Transportation Code.
	(b)  The district may exercise any power granted by this
	chapter and by Chapter 441, Transportation Code, without regard to
	any provision or requirement of, or procedure or maintenance tax
	rate limitation prescribed by, Chapter 441, Transportation Code.
	Sec. 3897.104.  PUBLIC IMPROVEMENT DISTRICT POWERS. The
	district has the powers provided by Subchapter A, Chapter 372,
	Local Government Code, to a municipality or county.
	Sec. 3897.105.  MUNICIPAL MANAGEMENT DISTRICT POWERS; CITY
	POWERS. (a)  The district has the powers provided by Chapter 375,
	Local Government Code.
	(b)  The city has the powers granted to the Texas Commission
	on Environmental Quality under Chapter 375, Local Government Code.
	Sec. 3897.106.  RULES; ENFORCEMENT. (a) The district may
	adopt rules:
	(1)  to administer or operate the district;
	(2)  for the use, enjoyment, availability, protection,
	security, and maintenance of the district's property and
	facilities; or
	(3)  to provide for public safety and security in the
	district.
	(b)  The district may enforce its rules by injunctive relief.
	Sec. 3897.107.  CONFLICT WITH CITY RULE, ORDER, OR
	ORDINANCE.  To the extent a district rule conflicts with a city
	rule, order, or ordinance, the city rule, order, or ordinance
	controls.
	Sec. 3897.108.  NAME CHANGE. The board by resolution may
	change the district's name. The board shall give written notice of
	the change to the city.
	Sec. 3897.109.  TERMS OF EMPLOYMENT; COMPENSATION.  The
	board may employ and establish the terms of employment and
	compensation of an executive director or general manager and any
	other district employees the board considers necessary.
	Sec. 3897.110.  USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OR
	FACILITY OF DISTRICT. (a) The board by rule may regulate the
	private use of a public roadway, open space, park, sidewalk, or
	similar public area or facility in the district. A rule may provide
	for the safe and orderly use of public roadways, open spaces, parks,
	sidewalks, and similar public areas or facilities.
	(b)  The board may require a permit for a parade,
	demonstration, celebration, entertainment event, or similar
	nongovernmental activity in or on a public roadway, open space,
	park, sidewalk, or similar public area or facility owned by the
	district. The board may charge a fee for the permit application or
	for public safety or security services for those facilities in an
	amount the board considers necessary.
	(c)  The board may require a permit or franchise agreement
	with a vendor, concessionaire, exhibitor, or similar private or
	commercial person or organization for the limited use of the area or
	facility owned by the district on terms and on payment of a permit
	or franchise fee the board may impose.
	Sec. 3897.111.  ADDING OR REMOVING TERRITORY. As provided
	by Subchapter J, Chapter 49, Water Code, the board may add territory
	to the district, subject to Section 54.016, Water Code, or remove
	territory from the district, except that:
	(1)  the addition or removal of the territory must be
	approved by:
	(A)  the governing body of the city; and
	(B)  the owners of the territory being added or
	removed;
	(2)  a reference to a tax in Subchapter J, Chapter 49,
	or Section 54.016, Water Code, means an ad valorem tax; and
	(3)  territory may not be removed from the district if
	bonds or other obligations of the district payable wholly or partly
	from ad valorem taxes or assessments levied or assessed on the
	territory are outstanding.
	Sec. 3897.112.  ECONOMIC DEVELOPMENT. (a)  The district may
	create an economic development program authorized by Section 52-a,
	Article III, Texas Constitution.
	(b)  The district may exercise the economic development
	powers that:
	(1)  Chapter 380, Local Government Code, provides to a
	municipality with a population of more than 100,000; and
	(2)  Chapter 1509, Government Code, provides to a
	municipality.
	Sec. 3897.113.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	[Sections 3897.114-3897.150 reserved for expansion]
	SUBCHAPTER C-1.  IMPROVEMENT PROJECTS
	Sec. 3897.151.  BOARD DETERMINATION REQUIRED.  The district
	may not undertake an improvement project unless the board
	determines the project to be necessary to accomplish a public
	purpose of the district.
	Sec. 3897.152.  LOCATION OF IMPROVEMENT PROJECT. An
	improvement project may be inside or outside the district.
	Sec. 3897.153.  CITY REQUIREMENTS.  (a)  An improvement
	project must comply with any applicable city requirements,
	including codes and ordinances.
	(b)  The district may not provide, conduct, or authorize any
	improvement project on the city streets, highways, rights-of-way,
	or easements without the consent of the governing body of the city.
	Sec. 3897.154.  ADDITIONAL CITY POWERS REGARDING
	IMPROVEMENT PROJECTS. (a)  Unless the district and the city agree
	otherwise, the city may:
	(1)  by ordinance, order, or resolution require that
	title to all or any portion of an improvement project vest in the
	city; or
	(2)  by ordinance, order, or resolution or other
	directive authorize the district to own, encumber, maintain, and
	operate an improvement project or convey the project to the city at
	a later date.
	(b)  The district shall immediately comply with any city
	ordinance, order, or resolution adopted under this section.
	Sec. 3897.155.  LAKE.  For the purposes of this subchapter,
	planning, design, construction, improvement, or maintenance of a
	lake includes work done for drainage, reclamation, or recreation.
	Sec. 3897.156.  WATER.  (a)  An improvement project may
	include a supply and distribution facility or system to provide
	potable and nonpotable water to the residents and businesses of the
	district, including a wastewater collection facility.
	(b)  The district may plan, design, construct, improve,
	maintain, or operate a water or sewer facility under this section.
	Sec. 3897.157.  ROADS.  An improvement project may include a
	paved, macadamized, or graveled road or street inside and outside
	the district, to the full extent authorized by Section 52, Article
	III, Texas Constitution.
	Sec. 3897.158.  STORM WATER.  An improvement project may
	include protection and improvement of the quality of storm water
	that flows through the district.
	Sec. 3897.159.  PARKING OR HELIPORT.  An improvement project
	may include the planning, design, construction, improvement,
	maintenance, and operation of an off-street parking facility or
	heliport.
	Sec. 3897.160.  EDUCATION AND CULTURE.  An improvement
	project may include the planning and acquisition of:
	(1)  public art and sculpture and related exhibits and
	facilities; or
	(2)  an educational facility and a cultural exhibit or
	facility.
	Sec. 3897.161.  CONVENTION CENTER.  An improvement project
	may include the planning, design, construction, acquisition,
	lease, rental, improvement, maintenance, installation, and
	management of and provision of furnishings for a facility for:
	(1)  a conference, convention, or exhibition;
	(2)  a manufacturer, consumer, or trade show;
	(3)  a civic, community, or institutional event; or
	(4)  an exhibit, display, attraction, special event, or
	seasonal or cultural celebration or holiday.
	Sec. 3897.162.  DEMOLITION.  An improvement project may
	include the removal, razing, demolition, or clearing of land or
	improvements in connection with an improvement project.
	Sec. 3897.163.  MITIGATION OF ENVIRONMENTAL EFFECTS.  An
	improvement project may include the acquisition and improvement of
	land or other property for the mitigation of the environmental
	effects of an improvement project.
	Sec. 3897.164.  ACQUISITION OF PROPERTY.  An improvement
	project may include the acquisition of property or an interest in
	property in connection with an improvement project, including a
	project authorized by Subchapter A, Chapter 372, Local Government
	Code.
	Sec. 3897.165.  SPECIAL OR SUPPLEMENTAL SERVICES.  An
	improvement project may include a special or supplemental service
	for the improvement and promotion of the district or an area
	adjacent to the district or for the protection of public health and
	safety in or adjacent to the district, including:
	(1)  advertising;
	(2)  promotion;
	(3)  tourism;
	(4)  health and sanitation;
	(5)  public safety;
	(6)  security;
	(7)  fire protection or emergency medical services;
	(8)  business recruitment;
	(9)  development;
	(10)  the elimination of traffic congestion; and
	(11)  recreational, educational, or cultural
	improvements, enhancements, and services.
	Sec. 3897.166.  MISCELLANEOUS DESIGN, CONSTRUCTION, AND
	MAINTENANCE.  An improvement project may include the planning,
	design, construction, improvement, and maintenance of:
	(1)  landscaping;
	(2)  highway right-of-way or transit corridor
	beautification and improvement;
	(3)  lighting, banners, and signs;
	(4)  a street or sidewalk;
	(5)  a hiking and cycling path or trail;
	(6)  a pedestrian walkway, skywalk, crosswalk, or
	tunnel;
	(7)  a park, lake, garden, recreational facility,
	community activities center, dock, wharf, sports facility, open
	space, scenic area, or related exhibit or preserve;
	(8)  a fountain, plaza, or pedestrian mall; or
	(9)  a drainage or storm water detention improvement.
	Sec. 3897.167.  SIMILAR IMPROVEMENT PROJECTS.  An
	improvement project may include a public improvement, facility, or
	service similar to a project described by this subchapter.
	[Sections 3897.168-3897.200 reserved for expansion]
	SUBCHAPTER C-2.  CONTRACTS
	Sec. 3897.201.  GENERAL CONTRACT POWERS. The district may
	contract with any person to accomplish any district purpose.
	Sec. 3897.202.  CONTRACT TERMS.  (a)  In this section, "note"
	includes a bond anticipation note.
	(b)  A contract the district enters into to carry out a
	purpose of this chapter may be on any terms and for any period the
	board determines, including an obligation to issue a negotiable or
	nonnegotiable note or warrant payable to the city, the county, or
	any other person for the payment or reimbursement of any district
	costs.
	Sec. 3897.203.  REIMBURSEMENT OF COSTS.  The district may
	contract with any person for the payment, repayment, or
	reimbursement of costs incurred by that person on behalf of the
	district, including all or part of the costs of an improvement
	project and interest on the reimbursed cost.
	Sec. 3897.204.  CONTRACT FOR IMPROVEMENT PROJECT.  (a)  The
	district may contract with any person for the use, occupancy,
	lease, rental, operation, maintenance, or management of all or part
	of a proposed or existing improvement project.
	(b)  The district may apply for and contract with any person
	to receive, administer, and perform a duty or obligation of the
	district under a federal, state, local, or private gift, grant,
	loan, conveyance, transfer, bequest, or other financial assistance
	arrangement relating to the investigation, planning, analysis,
	study, design, acquisition, construction, improvement, completion,
	implementation, or operation by the district or others of a
	proposed or existing improvement project.
	Sec. 3897.205.  NO FURTHER CONTRACT AUTHORIZATION REQUIRED.
	Except as provided by Section 3897.206, any person, including the
	city and the county, may contract with the district to carry out the
	purposes of this chapter without further statutory or other
	authorization.
	Sec. 3897.206.  CITY APPROVAL OF CONTRACT WITH COUNTY.  The
	district and the county may not enter into a contract unless the
	governing body of the city approves the contract.
	[Sections 3897.207-3897.250 reserved for expansion]
	SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
	Sec. 3897.251.  PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
	IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district
	may issue bonds, impose taxes, or borrow money, the district and the
	city must negotiate and execute a project development agreement
	regarding the development plans and rules for:
	(1)  the development and operation of the district; and
	(2)  the financing of improvement projects.
	Sec. 3897.252.  BORROWING MONEY. (a)  In this section,
	"note" includes a bond anticipation note.
	(b)  The district may borrow money for a district purpose by
	issuing or executing bonds, negotiable or nonnegotiable notes,
	credit agreements, or other obligations of any kind found by the
	board to be necessary or appropriate for a district purpose. The
	bond, note, credit agreement, or other obligation must be secured
	by and payable from any combination of ad valorem taxes,
	assessments, future bond proceeds, or any other district revenue or
	sources of money.
	Sec. 3897.253.  GENERAL POWERS REGARDING PAYMENT OF DISTRICT
	BONDS, OBLIGATIONS, OR OTHER COSTS.  The district may provide or
	secure the payment or repayment of any bond, note, or other
	temporary or permanent obligation or reimbursement or other
	contract with any person and the costs and expenses of the
	establishment, administration, and operation of the district and
	the district's costs or share of the costs or revenue of an
	improvement project or district contractual obligation or
	indebtedness by:
	(1)  the imposition of an ad valorem tax or an
	assessment, user fee, concession fee, or rental charge; or
	(2)  any other revenue or resources of the district,
	including bond proceeds, or other revenue authorized by the city,
	including revenue from a tax increment reinvestment zone created by
	the city.
	Sec. 3897.254.  ASSESSMENTS.  (a)  The district may impose an
	assessment on property in the district to pay the cost or the cost
	of maintenance of any authorized district improvement in the manner
	provided for:
	(1)  a district under Subchapters A, E, and F, Chapter
	375, Local Government Code; or
	(2)  a municipality or county under Subchapter A,
	Chapter 372, Local Government Code.
	(b)  An assessment, a reassessment, or an assessment
	resulting from an addition to or correction of the assessment roll
	by the district, penalties and interest on an assessment or
	reassessment, an expense of collection, and reasonable attorney's
	fees incurred by the district:
	(1)  are a first and prior lien against the property
	assessed; and
	(2)  are superior to any other lien or claim other than
	a lien or claim for county, school district, or municipal ad valorem
	taxes.
	(c)  The lien of an assessment against property runs with the
	land.  The portion of an assessment payment obligation that has not
	yet come due is not eliminated by the foreclosure of an ad valorem
	tax lien, and any purchaser of property in a foreclosure of an ad
	valorem tax lien takes the property subject to the assessment
	payment obligations that have not yet come due and to the lien and
	terms of the lien's payment under the applicable assessment
	ordinance or order.
	(d)  The board may make a correction to or deletion from the
	assessment roll that does not increase the amount of assessment of
	any parcel of land without providing notice and holding a hearing in
	the manner required for additional assessments.
	Sec. 3897.255.  IMPACT FEES; EXEMPTION. (a) The district
	may impose an impact fee on property in the district, including an
	impact fee on residential or commercial property, only in the
	manner provided by Subchapter A, Chapter 372, or Subchapter F,
	Chapter 375, Local Government Code, for a municipality, county, or
	public improvement district.
	(b)  An impact fee for residential property must be for the
	limited purpose of providing capital funding for:
	(1)  public water and wastewater facilities;
	(2)  drainage and storm water facilities; and
	(3)  streets and alleys.
	(c)  The district may not impose an impact fee on the
	property, including equipment and facilities, of a public utility
	provider in the district.
	Sec. 3897.256.  STORM WATER USER CHARGES.  The district may
	establish user charges related to the operation of storm water
	facilities, including the regulation of storm water for the
	protection of water quality in the district.
	Sec. 3897.257.  NONPOTABLE WATER USER CHARGES.  The district
	may establish user charges for the use of nonpotable water for
	irrigation purposes, subject to approval of the governing body of
	the city.
	Sec. 3897.258.  COSTS FOR IMPROVEMENT PROJECTS.  The
	district may undertake separately or jointly with other persons,
	including the city or county, all or part of the cost of an
	improvement project, including an improvement project:
	(1)  for improving, enhancing, and supporting public
	safety and security, fire protection and emergency medical
	services, and law enforcement in and adjacent to the district; or
	(2)  that confers a general benefit on the entire
	district or a special benefit on a definable part of the district.
	Sec. 3897.259.  RESIDENTIAL PROPERTY NOT EXEMPT. Section
	375.161, Local Government Code, does not apply to the district.
	[Sections 3897.260-3897.300 reserved for expansion]
	SUBCHAPTER E.  TAXES AND BONDS
	Sec. 3897.301.  PROPERTY TAX AUTHORIZED.  The district may
	impose an ad valorem tax on all taxable property in the district,
	including industrial, commercial, and residential property, to:
	(1)  pay for an improvement project of the types
	authorized by Section 52, Article III, and Section 59, Article XVI,
	Texas Constitution; or
	(2)  secure the payment of bonds issued for a purpose
	described by Subdivision (1).
	Sec. 3897.302.  MAINTENANCE AND OPERATION TAX; ELECTION.
	(a) The district may impose a tax for maintenance and operation
	purposes, including for:
	(1)  planning, constructing, acquiring, maintaining,
	repairing, and operating all improvement projects, including land,
	plants, works, facilities, improvements, appliances, and equipment
	of the district; and
	(2)  paying costs of services, engineering and legal
	fees, and organization and administrative expenses.
	(b)  The district may not impose a maintenance and operation
	tax unless the tax is approved by a majority of the district voters
	voting at an election held for that purpose.  The proposition in a
	maintenance and operation tax election may be for a specific
	maximum rate or for an unlimited rate. If a maximum tax rate is
	approved, the board may impose the tax at any rate that does not
	exceed the approved rate.
	(c)  A maintenance and operation tax election may be held at
	the same time and in conjunction with any other district election.
	The election may be called by a separate election order or as part
	of any other election order.
	Sec. 3897.303.  USE OF SURPLUS MAINTENANCE AND OPERATION
	MONEY. If the district has maintenance and operation tax money that
	is not needed for the purposes for which it was collected, the money
	may be used for any authorized purpose.
	Sec. 3897.304.  TAX ABATEMENT.  The district may enter into a
	tax abatement agreement in accordance with the general laws of this
	state authorizing and applicable to a tax abatement agreement by a
	municipality.
	Sec. 3897.305.  BONDS AND OTHER OBLIGATIONS; MUNICIPAL
	APPROVAL. (a) The district by competitive bid or negotiated sale
	may issue bonds, notes, or other obligations payable wholly or
	partly from ad valorem taxes, future bond proceeds, or assessments
	in the manner provided by Subchapter A, Chapter 372, or Subchapter
	J, Chapter 375, Local Government Code.
	(b)  In exercising the district's borrowing power, the
	district may issue a bond or other obligation in the form of a bond,
	note, including a bond anticipation note, certificate of
	participation or other instrument evidencing a proportionate
	interest in payments to be made by the district, or any other type
	of obligation.
	(c)  In addition to the sources of money described by
	Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
	Government Code, district bonds may be secured and made payable,
	wholly or partly, by a pledge of any part of the money the district
	receives from system or improvement revenue or from any other
	source, including future bond proceeds.
	Sec. 3897.306.  BOND MATURITY. Bonds may mature not more
	than 40 years from their date of issue.
	Sec. 3897.307.  TAXES FOR BONDS AND OTHER OBLIGATIONS;
	ELECTION. (a) At the time bonds or other obligations payable
	wholly or partly from ad valorem taxes are issued:
	(1)  the board shall impose a continuing direct annual
	ad valorem tax, without limit as to rate or amount, for each year
	that all or part of the bonds are outstanding; and
	(2)  the district annually shall impose an ad valorem
	tax on all taxable property in the district in an amount sufficient
	to:
	(A)  pay the interest on the bonds or other
	obligations as the interest becomes due;
	(B)  create a sinking fund for the payment of the
	principal of the bonds or other obligations when due or the
	redemption price at any earlier required redemption date; and
	(C)  pay the expenses of imposing the taxes.
	(b)  Bonds or other obligations that are secured by and
	payable from ad valorem taxes may not be issued unless the bonds and
	the imposition of the taxes are approved by a majority of the
	district voters voting at an election held for that purpose.
	(c)  The district shall hold an election required by this
	section in the manner provided by Chapter 54, Water Code, and the
	Election Code.
	(d)  If the district issues bond anticipation notes payable
	from future bond proceeds that are payable wholly or partly from an
	ad valorem tax, the bonds must have been previously approved at an
	election and meet the requirements of this section.
	Sec. 3897.308.  BONDS NOT SUBJECT TO JURISDICTION OR
	SUPERVISION OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. The
	district's bonds and other securities are not subject to the
	jurisdiction or supervision of the Texas Commission on
	Environmental Quality under Chapter 49, Water Code, Chapter 375,
	Local Government Code, or any other law.
	[Sections 3897.309-3897.350 reserved for expansion]
	SUBCHAPTER F.  DISSOLUTION
	Sec. 3897.351.  DISSOLUTION BY CITY ORDINANCE. (a) The city
	by ordinance may dissolve the district.
	(b)  The city may not dissolve the district until the
	district's outstanding indebtedness or contractual obligations
	that are payable from ad valorem taxes have been repaid or
	discharged.
	(c)  The city may not dissolve the district until each
	agreement under Section 3897.251 has been executed and the
	district's performance under the agreement has been fulfilled,
	including any right or obligation the district has to reimburse a
	developer or owner for the costs of improvement projects.
	Sec. 3897.352.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
	(a) If the dissolved district has bonds or other obligations
	outstanding secured by and payable from assessments or other
	revenue, other than ad valorem taxes, the city shall succeed to the
	rights and obligations of the district regarding enforcement and
	collection of the assessments or other revenue.
	(b)  The city shall have and exercise all district powers to
	enforce and collect the assessments or other revenue to pay:
	(1)  the bonds or other obligations when due and
	payable according to their terms; or
	(2)  special revenue or assessment bonds or other
	obligations issued by the city to refund the outstanding bonds or
	obligations.
	Sec. 3897.353.  ASSUMPTION OF ASSETS AND LIABILITIES. (a)
	After the city dissolves the district, the city assumes the
	obligations of the district, including any bonds or other
	indebtedness payable from assessments or other district revenue.
	(b)  If the city dissolves the district, the board shall
	transfer ownership of all district property to the city.
	SECTION 2.  The district shall include the following land,
	described by metes and bounds as follows:
	All that certain tract or parcel of land lying and being
	situate in the City of Nacogdoches, Nacogdoches County, Texas on
	the SAMUEL MARSHALL SURVEY, A-365, being part of a 98.4 acre tract
	described as 1st Tract of Second Tract, part of a 34.1 acre tract
	described as Third Tract, part of a 7.111 acre tract described as
	Fifth Tract, and part of a 13.592 acre tract described as Seventh
	Tract in a deed from C.S. Jones, et ux, to Lone Star Breeder Farm,
	Inc., dated January 24, 1958, recorded in Volume 272, Page 359 of
	the DRNCT, and part of a 240.7 acre tract described as First Tract
	in a deed from Christian Medical Foundation, Inc., to Lone Star
	Breeder Farm, Inc., recorded in Volume 334, Page 122 of the DRNCT,
	and more particularly described as follows:
	BEGINNING at a 1-1/2" iron pipe found at the base of a fence
	corner post for the SWC of the Kenbrook North Addition, recorded in
	Volume 3, Page 5-7 of the Plat Records of Nacogdoches County, Texas
	(PRNCT), the NWC of the 13.592 acre tract, and in the EBL of the 98.4
	acre tract;
	THENCE N 86°12'34" E (called N 86°45' E in 272/359 and N
	89°36'53" E in 3/5-7 PRNCT) with the NBL of the 13.592 acre tract and
	the SBL of Kenbrook North Addition, at 286.9 feet pass a point 1.7
	feet south of a 3/4" iron rod found, at 406.6 feet pass a point 0.3
	feet north of a 1/2" iron rod found, at 525.6 feet pass a point 1.4
	feet south of a 3/4" iron rod found, at 766.6 feet pass a point 1.0
	feet south of a 3/4" iron pipe found, at 886.6 feet pass a point 0.5
	feet south of a 5/8" iron rod found, and in all 992.29 feet (called
	1119.4' in 272/359 and 994.65' in 3/5-7 PRNCT) to a 2" iron pipe
	found for angle corner in the SBL of Kenbrook North Addition, the
	occupied NEC of the 13.592 acre tract, the NWC of a 11.3 acre tract
	described as Tract Two in a deed from Texas Service Life Insurance
	Company to Lyle Thorstenson, et ux, dated November 4, 1992,
	recorded in Volume 828, Page 30 of the DRNCT;
	THENCE S 06°42'53" W (called S 10° W in 272/359 and S 11° W in
	828/30) with the occupied EBL of the 13.592 acre tract and the WBL
	of the 11.3 acre tract, at 362.61 feet pass a 3/8" iron rod found for
	the SWC of the 11.3 acre tract and the NWC of a 10.39 acre tract
	described in a deed from Tom Jones to Charles Logan, et ux, dated
	July 22, 1966, recorded in Volume 337, Page 372 of the DRNCT, and in
	all 382.11 feet to a point for corner in the centerline of a branch
	and the WBL of the 10.39 acre tract;
	THENCE with the meanders of the centerline of said branch as
	follows:
	1.  S 82°09'36" W, 50.72 feet;  2. S 48°54'39" W, 35.18 feet;
	3. S 34°22'24" W, 29.53 feet;  4. S 74°58'24" W, 18.52 feet;
	5. S 49°38'26" W, 43.35 feet;  6. S 00°39'30" W, 39.58 feet;
	7. S 55°24'09" W, 48.03 feet;  8. S 04°28'22" W, 45.81 feet;
	9. S 56°30'54" W, 15.88 feet;  10. N 69°22'31" W, 46.25 feet;
	11. S 55°31'51" W, 61.21 feet;  12. S 70°31'12" W, 100.13 feet;
	13. S 85°50'02" W, 34.33 feet;  14. N 58°03'58" W, 51.81 feet;
	15. S 79°38'09" W, 59.16 feet;  16. N 79°34'50" W, 57.07 feet;
	17. N 62°50'24" W, 44.62 feet;  18. N 70°59'09" W, 29.20 feet;
	19. N 46°17'24" W, 22.76 feet;  20. S 46°05'11" W, 106.77 feet;
	21. N 52°48'49" W, 76.41 feet;  22. N 24°49'49" W, 32.59 feet;
	23. N 68°46'25" W, 89.22 feet;  24. N 55°51'25" W, 44.31 feet;
	25. N 60°43'07" W, 63.64 feet;  26. N 83°43'02" W, 76.64 feet;
	27. N 39°08'20" W, 45.76 feet;  28. S 64°00'08" W, 55.43 feet;
	29. S 78°15'18" W, 51.35 feet;  30. N 65°17'01" W, 40.20 feet;
	31. N 51°25'37" W, 34.71 feet;  32. S 53°55'17" W, 95.66 feet;
	33. S 64°46'48" W, 56.59 feet;  34. S 78°49'38" W, 60.02 feet;
	35. N 84°08'55" W, 71.77 feet;  36. N 40°23'53" W, 27.74 feet;
	37. N 60°00'50" W, 58.49 feet;  38. S 89°23'46" W, 38.39 feet;
	39.  S 51°47'35" W, 33.00 feet;  40. S 83°31'21" W, 29.43 feet;
	41.  S 41°10'09" W, 14.48 feet;  42. S 83°39'36" W, 22.67 feet;
	43. N 20°02'08" W, 16.80 feet;  44. N 08°24'01" W, 14.46 feet;
	45.  N 65°25'57" W, 53.59 feet;  46. N 38°34'52" W, 33.98 feet;
	47.  N 76°14'16" W, 54.42 feet;  48. N 81°16'42" W, 44.12 feet;
	49.  N 60°00'12" W, 99.63 feet;  50. N 72°59'23" W, 68.62 feet;
	51.  N 68°45'56" W, 80.15 feet;  52. N 43°13'00" E, 40.35 feet;
	53.  N 78°25'21" W, 49.93 feet;  54. N 59°59'25" W, 60.28 feet;
	55.  N 49°49'20" W, 69.27 feet;  56.  N 69°07'16" W, 53.13 feet
	to a point for corner in the EBL of Lot 2, University Park
	Subdivision, recorded in Volume 5, Page 33 of the PRNCT, from which
	a 1/2" iron rod found for witness bears N 01°12'28" E, 30.00 feet;
	THENCE N 01°12'28" E, 140.44 feet (called N 04°39'37" E in 5/33
	PRNCT) with the EBL of Lot 2 to a 1" iron pipe found for corner, from
	which a Tallow snag bears S 54~ W, 2.0 feet;
	THENCE N 88°44'28" W (called N 85°23'52" W in 5/33 PRNCT),
	75.00 feet with the NBL of Lot 2 to a 1/2" iron rod found for corner;
	THENCE N 01°10'22" E, 345.85 feet to a 1/2" iron rod set for
	corner in the SBL of a 4.145 acre tract described in a deed from Lone
	Star Breeder Farm, Inc., to the City of Nacogdoches, dated July 16,
	2007, recorded in Volume 2693, Page 177 of the DRNCT, said 4.145
	acre tract being the right-of-way for Maroney Drive;
	THENCE with the SBL of the 4.145 acre tract as follows:
	1.  S 88°49'38" E, 189.84 feet to a 1/2" iron rod set for
	corner;
	2.  Northeasterly, 399.38 feet with a tangent curve to the
	left having a radius of 527.35 feet, a central angle of 43°23'31",
	and a chord of N 69°28'36" E, 389.90 feet to a 1/2" iron rod set for
	corner;
	3.  N 86°47'25" E, 25.99 feet to a 1/2" iron rod set for
	corner;
	4.  N 41°47'25" E, 73.31 feet to a 1/2" iron rod set for
	corner;
	5.  N 03°12'35" W, 21.92 feet to a 1/2" iron rod set for
	corner;
	6.  N 41°47'25" E, 151.81 feet to a 1/2" iron rod found for
	corner;
	7.  Northeasterly, 388.82 feet with a tangent curve to the
	right, having a radius of 472.65 feet, a central angle of 47°08'02",
	and a chord of N 65°21'26" E, 377.95 feet to a 1/2" iron rod found
	for corner;
	8.  N 88°55'28" E, 37.19 feet to a 1/2" iron rod set for
	corner;
	9.  S 46°04'33" E, 21.92 feet to a 1/2" iron rod set for
	corner;
	10.  N 88°55'28" E, 73.31 feet to a 1/2" iron rod set for
	corner;
	11.  N 43°55'27" E, 21.92 feet to a 1/2" iron rod set for
	corner;
	12.  N 88°55'28" E, at 296.5 feet pass a wire fence, and in all
	304.32 feet to an "X" found chiseled in a concrete drive at the most
	easterly SEC of the 4.145 acre tract, in the WBL of Kenbrook North
	Addition and the EBL of the 240.7 acre tract;
	THENCE S 07°05'37" W (called S 10° W), at 141.3 feet pass a
	point 1.1 feet east of a 3/8" iron rod, at 240.2 feet pass a point
	0.6 feet east of a 1/2" iron rod, at 360.2 feet pass a point 0.7 feet
	east of a 1/2" pipe, and in all 876.83 feet to the place of BEGINNING
	containing within these calls 44.34 acres.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2011.