H.B. No. 4755

	AN ACT
	relating to the creation of the Guadalupe County Development and
	Management District; providing authority to impose an assessment,
	impose a tax, 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 3887 to read as follows:
	CHAPTER 3887. GUADALUPE COUNTY DEVELOPMENT AND MANAGEMENT DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 3887.001.  DEFINITIONS.  In this chapter:
	(1)  "Board" means the board of directors of the
	district.
	(2)  "County" means Guadalupe County.
	(3)  "District" means the Guadalupe County Development
	and Management District.
	(4)  "Improvement project" means a program or project
	authorized by Section 3887.102, inside or outside the boundaries of
	the district.
	Sec. 3887.002.  CREATION AND NATURE OF DISTRICT.  (a)  The
	district is a special district created under Section 59, Article
	XVI, Texas Constitution, with all of the powers granted by this
	chapter.
	(b)  The district is a governmental unit for the purposes of
	Chapter 101, Civil Practice and Remedies Code, and operations of
	the district are considered to be essential governmental functions
	and not proprietary functions for all purposes, including the
	application of that chapter.
	Sec. 3887.003.  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 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, and protect the environment and the other natural
	resources of the state, and to 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 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 county services provided in the
	district.
	Sec. 3887.004.  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;
	(4)  developing or expanding transportation and
	commerce; and
	(5)  improving and enhancing the environment in and
	around the district and in the county.
	(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 and
	enhancing and improving the environment as an essential natural
	resource of the state.
	(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. 3887.005.  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 3887.107 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. 3887.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
	(a) If all or any part of the district is annexed into a
	municipality, any part of the area of the district is eligible to be
	included in:
	(1)  a tax increment reinvestment zone created by the
	municipality under Chapter 311, Tax Code;
	(2)  a tax abatement reinvestment zone created by the
	municipality under Chapter 312, Tax Code; or
	(3)  an enterprise zone created by the municipality
	under Chapter 2303, Government Code.
	(b)  If a municipality creates a tax increment reinvestment
	zone described by Subsection (a), the municipality, 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.
	[Sections 3887.007-3887.050 reserved for expansion]
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 3887.051.  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 July 1 of
	each odd-numbered year.
	Sec. 3887.052.  ELECTION DATE. The board shall hold
	elections for directors on the uniform election date in May of
	odd-numbered years.
	Sec. 3887.053.  VACANCY.  The board of directors shall
	appoint a director to fill a vacancy on the board for the remainder
	of the unexpired term.
	Sec. 3887.054.  ELIGIBILITY. (a) To serve as a director, a
	person must be at least 18 years old and be:
	(1)  a resident of the district who is also a registered
	voter of the district;
	(2)  an owner of property in the district;
	(3)  an owner of stock, whether beneficial or
	otherwise, of a corporate owner of property in the district;
	(4)  an owner of a beneficial interest in a trust that
	owns property in the district;
	(5)  an agent, employee, or tenant of a person covered
	by Subdivision (2), (3), or (4); or
	(6)  an initial director.
	(b)  Section 49.052, Water Code, does not apply to the
	district.
	Sec. 3887.055.  DIRECTOR'S OATH OR AFFIRMATION. A
	director's oath or affirmation of office shall be filed with the
	district, and the district shall retain the oath or affirmation in
	the district records.
	Sec. 3887.056.  OFFICERS. The board shall elect from among
	the directors a presiding officer, an assistant presiding officer,
	and a secretary.
	Sec. 3887.057.  COMPENSATION, EXPENSES, AND LIABILITY
	INSURANCE FOR DIRECTORS. (a) The district may compensate each
	director in an amount not to exceed $50 for each board meeting. The
	total amount of compensation for one director may not exceed $2,000
	annually.
	(b)  The district shall reimburse directors for necessary
	and reasonable expenses incurred in carrying out the duties and
	responsibilities of a director.
	(c)  The district may obtain and pay for comprehensive
	general liability insurance coverage from commercial insurance
	companies or other sources that protect and insure the directors
	against personal liability and from any and all claims for actions
	taken as directors or actions and activities taken by the district
	or by others acting on the district's behalf.
	Sec. 3887.058.  CONFLICTS OF INTEREST. (a) A director may
	participate in all board votes and decisions, subject to the
	requirements of this section.
	(b)  Section 171.004, Local Government Code, does not apply
	to the district.
	(c)  A director who has a substantial interest in a business
	or charitable entity that will receive a pecuniary benefit from a
	board action shall file an affidavit with the board secretary
	declaring the interest. Another affidavit is not required if the
	director's interest changes.
	(d)  After the affidavit is filed, the director may
	participate in a discussion or vote if:
	(1)  a majority of the appointed directors have a
	similar interest in the same entity;
	(2)  all other similar businesses or charitable
	entities in the district will receive a similar pecuniary benefit;
	or
	(3)  the appointed director is a property owner in the
	district.
	Sec. 3887.059.  INITIAL DIRECTORS. (a)  The initial board
	consists of the following directors:
	Place No.       Name of Initial Director
	Place 1           G. Steven White
	Place 2           Christopher Turner
	Place 3           Holly White Turner
	Place 4           Bradley White
	Place 5           Jacob White
	(b)  Of the initial directors, the terms of directors
	appointed for places 1 and 2 expire on July 1, 2011, and the terms of
	the initial directors appointed for places 3, 4, and 5 expire on
	July 1, 2013.
	(c)  Section 49.052, Water Code, does not apply to initial
	directors.
	(d)  This section expires September 1, 2014.
	[Sections 3887.060-3887.100 reserved for expansion]
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 3887.101.  GENERAL POWERS AND DUTIES. The district has
	the duties imposed by this chapter and the powers:
	(1)  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;
	(2)  provided by the general laws relating to road
	districts and road utility districts created under Section 52,
	Article III, Texas Constitution, including Chapter 441,
	Transportation Code, except that the district may exercise any
	power granted by this chapter without regard to any provision or
	requirement of or procedure prescribed in Chapter 441,
	Transportation Code;
	(3)  that Subchapter A, Chapter 372, Local Government
	Code, provides a municipality or a county;
	(4)  provided by Chapter 375, Local Government Code;
	(5)  that Chapter 505, Local Government Code, provides
	a corporation created under that chapter; and
	(6)  that Chapter 1371, Government Code, provides an
	issuer.
	Sec. 3887.102.  IMPROVEMENT PROJECTS. (a) The district may
	provide, or it may enter into contracts with a governmental or
	private entity to provide, the following types of improvement
	projects or activities in support of or incidental to those
	projects:
	(1)  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;
	(2)  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;
	(3)  the planning, design, construction, improvement,
	and maintenance of:
	(A)  landscaping;
	(B)  highway right-of-way or transit corridor
	beautification and improvement;
	(C)  lighting, banners, and signs;
	(D)  a street or sidewalk;
	(E)  a hiking and cycling path or trail;
	(F)  a pedestrian walkway, skywalk, crosswalk, or
	tunnel;
	(G)  a park, lake, garden, recreational facility,
	community activities center, dock, wharf, sports facility, open
	space, scenic area, or related exhibit or preserve;
	(H)  a fountain, plaza, or pedestrian mall; or
	(I)  a drainage or storm-water detention
	improvement;
	(4)  protection and improvement of the quality of storm
	water that flows through the district;
	(5)  the planning, design, construction, improvement,
	maintenance, and operation of:
	(A)  a water or sewer facility; or
	(B)  an off-street parking facility or heliport;
	(6)  the planning and acquisition of:
	(A)  public art and sculpture and related exhibits
	and facilities; or
	(B)  an educational facility and a cultural
	exhibit or facility;
	(7)  the planning, design, construction, acquisition,
	lease, rental, improvement, maintenance, installation, and
	management of and provision of furnishings for a facility for:
	(A)  a conference, convention, or exhibition;
	(B)  a manufacturer, consumer, or trade show;
	(C)  a civic, community, or institutional event;
	or
	(D)  an exhibit, display, attraction, special
	event, or seasonal or cultural celebration or holiday;
	(8)  the removal, razing, demolition, or clearing of
	land or improvements in connection with an improvement project;
	(9)  the acquisition and improvement of land or other
	property for the mitigation of the environmental effects of an
	improvement project;
	(10)  the acquisition of property or an interest in
	property in connection with an authorized improvement project,
	including any project or projects that are authorized by Subchapter
	A, Chapter 372, or Chapter 375, Local Government Code;
	(11)  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 or the
	environment in or adjacent to the district, including:
	(A)  advertising;
	(B)  promotion;
	(C)  tourism;
	(D)  health and sanitation;
	(E)  public safety;
	(F)  security;
	(G)  fire protection or emergency medical
	services;
	(H)  business recruitment;
	(I)  development;
	(J)  the reduction of automobile traffic volume
	and congestion, including the provision, construction, and
	operation of light rail or streetcar systems and services; and
	(K)  recreational, educational, or cultural
	improvements, enhancements, and services; or
	(12)  any similar public improvement, facility, or
	service.
	(b)  The district may not undertake a project under this
	section unless the board determines the project to be necessary to
	accomplish a public purpose of the district.
	(c)  The district may not provide, conduct, or authorize any
	improvement project on municipal or county streets, highways,
	rights-of-way, roads, or easements without the consent of the
	governing body of the municipality or county, as applicable.
	(d)  For the purposes of this section, planning, design,
	construction, improvement, and maintenance of a lake includes work
	done for drainage, reclamation, or recreation.
	Sec. 3887.103.  GENERAL POWERS REGARDING CONTRACTS. (a)
	The district may:
	(1)  contract with any public or private person, body,
	or entity to accomplish any district purpose, including a contract
	for:
	(A)  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; or
	(B)  the use, occupancy, lease, rental,
	operation, maintenance, or management of all or part of a proposed
	or existing improvement project; and
	(2)  apply for and contract with any public or private
	person, body, or entity 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.
	(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 a negotiable or nonnegotiable note or
	warrant payable to any other person.
	(c)  Any person, including but not limited to the county, may
	contract with the district to carry out the purposes of this chapter
	without further statutory or other authorization.
	Sec. 3887.104.  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.
	(c)  To the extent a district rule conflicts with a county
	rule, order, or regulation, the county rule, order, or regulation
	controls.
	Sec. 3887.105.  NAME CHANGE. The board by resolution may
	change the district's name. The board shall give written notice of
	the change to the county and any municipality in which the district
	is wholly or partly located.
	Sec. 3887.106.  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. To the extent the
	district rules conflict with a rule, order, or regulation of the
	county or of a municipality in which the district is wholly or
	partly located, the rule, order, or regulation of the county or
	municipality controls. A rule may provide for the safe and orderly
	use of public roadways, open spaces, parks, sidewalks, and similar
	public areas or facilities in the district.
	(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 that is owned by
	the district. The board may charge a fee for the permit application
	or for public safety or security services for such 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. 3887.107.  ADDING OR REMOVING TERRITORY. (a) The board
	may add or remove territory under Subchapter J, Chapter 49, and
	Section 54.016, Water Code, except that the addition or removal of
	the territory must be approved by the owners of the territory being
	added or removed.
	(b)  A reference to a tax in Subchapter J, Chapter 49, or
	Section 54.016, Water Code, means an ad valorem tax.
	(c)  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. 3887.108.  ECONOMIC DEVELOPMENT. The district may
	create economic development and other programs pursuant to Section
	52-a, Article III, Texas Constitution, including the imposition and
	collection of ad valorem taxes for such purposes if approved by the
	voters of the district at an election, including 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 any
	municipality.
	Sec. 3887.109.  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. 3887.110.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	[Sections 3887.111-3887.150 reserved for expansion]
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 3887.151.  GENERAL POWERS REGARDING FINANCIAL MATTERS.
	Except as provided in an agreement executed pursuant to Section
	3887.160, the district may:
	(1)  impose an ad valorem tax on all taxable property in
	the district, including industrial, commercial, and residential
	property, to pay for an improvement project of the types authorized
	by Section 52, Article III, and Section 59, Article XVI, Texas
	Constitution, and to secure the payment of bonds issued for such
	purposes;
	(2)  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:
	(A)  a district under Subchapters A, E, and F,
	Chapter 375, Local Government Code; or
	(B)  a municipality or county under Subchapter A,
	Chapter 372, Local Government Code;
	(3)  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 or through:
	(A)  the imposition of an ad valorem tax or an
	assessment, user fee, concession fee, or rental charge; or
	(B)  any other revenue or resources of the
	district, or other revenues, including revenues from a tax
	increment reinvestment zone created by a municipality in which all
	or a portion of the territory of the district has been annexed;
	(4)  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;
	(5)  establish user charges for the use of potable and
	nonpotable water of the district;
	(6)  undertake separately or jointly with other
	persons, including a municipality or the county, all or part of the
	cost of an improvement project, including an improvement project:
	(A)  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
	(B)  that confers a general benefit on the entire
	district or a special benefit on a definable part of the district;
	and
	(7)  enter into a tax abatement agreement in accordance
	with the general laws of this state authorizing and applicable to
	tax abatement agreements by municipalities.
	Sec. 3887.152.  BORROWING MONEY. The district may borrow
	money for a district purpose by issuing or executing bonds, 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 ad valorem taxes, assessments, or any
	combination thereof or from other district revenue.
	Sec. 3887.153.  IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a)
	The district may impose an impact fee or assessment on property in
	the district, including an impact fee or assessment 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,
	according to the benefit received by the property.
	(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)  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.
	(d)  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.
	(e)  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.
	(f)  The district may not impose an impact fee on the
	property, including equipment and facilities, of a public utility
	provider in the district.
	Sec. 3887.154.  RESIDENTIAL PROPERTY NOT EXEMPT. Section
	375.161, Local Government Code, does not apply to the district.
	Sec. 3887.155.  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. 3887.156.  USE OF SURPLUS MAINTENANCE AND OPERATION
	MONEY. If the district has surplus 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. 3887.157.  BONDS AND OTHER OBLIGATIONS; MUNICIPAL
	APPROVAL. (a) Subject to the requirements of Sections 3887.159 and
	3887.160, the district by competitive bid or negotiated sale may
	issue bonds, notes, or other obligations payable wholly or partly
	from ad valorem taxes or from 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, 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 revenues or from any other
	source.
	Sec. 3887.158.  BOND MATURITY. Bonds may mature not more
	than 40 years from their date of issue.
	Sec. 3887.159.  TAXES FOR BONDS AND OTHER OBLIGATIONS. (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.
	Sec. 3887.160.  DEVELOPMENT AND OPERATING AGREEMENT
	REQUIRED TO UNDERTAKE IMPROVEMENT PROJECTS, IMPOSE TAXES OR
	ASSESSMENTS, AND BORROW MONEY, INCLUDING BONDS. (a)  After the
	district's board of directors is organized, but before the district
	may undertake any improvement project, issue bonds, impose taxes,
	impose assessments or fees, or borrow money, the district must
	negotiate and execute with the county a mutually approved and
	accepted development and operating agreement, including any
	pre-annexation agreements, and any limitations regarding the plans
	and rules for:
	(1)  the exercise of the powers granted to the district
	under this chapter, including the organization, development, and
	operation of the district;
	(2)  the selection and description of improvement
	projects that may be undertaken and financed by the district and the
	ownership, operation, and maintenance of the improvement projects;
	(3)  the terms, conditions, methods, means, and amounts
	of financing authorized by this chapter that the district may
	undertake in providing improvement projects; and
	(4)  the amounts, methods, and times of reimbursement
	to the county for costs and expenses, if any, incurred by the county
	with respect to the development and operation of the district and
	the financing of improvement projects by the district.
	(b)  An agreement required by this section may not be
	effective until its terms and execution are approved by the board by
	order or resolution.
	[Sections 3887.161-3887.200 reserved for expansion]
	SUBCHAPTER E.  DISSOLUTION
	Sec. 3887.201.  DISSOLUTION BY BOARD ORDER. (a) The board,
	with the approval of the county, by order may dissolve the district.
	(b)  The board may not dissolve a district until:
	(1)  the district's outstanding indebtedness and all
	contractual obligations that are payable from ad valorem taxes or
	assessments have been paid, satisfied, or discharged; and
	(2)  if, at the time of dissolution, the district is not
	situated wholly or partly within a municipality, the county agrees
	to accept title to all district property and to provide the level of
	services provided by the district as of the date of dissolution.
	(c)  If the district is located wholly or partly within a
	municipality, the municipality may dissolve the district by
	ordinance at any time after all outstanding debt and contractual
	obligations of the district that are payable from ad valorem taxes
	have been paid, satisfied, and discharged. If the district has
	outstanding debt that is payable from assessments or other district
	revenue, other than ad valorem taxes, and the municipality
	dissolves the district, the municipality assumes, subject to the
	appropriation and availability of funds, the obligations of the
	district, including any bonds or other indebtedness payable from
	assessments or district revenue other than ad valorem taxes.
	(d)  If a municipality dissolves the district, the board
	shall transfer ownership of all district property to the
	municipality.
	SECTION 2.  The Guadalupe County Development and Management
	District shall include the following land, described by metes and
	bounds as follows:
	Being a 391.0 acre tract of land situated in the Robert Hall Survey,
	Abstract 11, Guadalupe County, Texas, being all that tract of land
	called 391.262 acres, conveyed to S. White Ranches and Properties
	Ltd., by deed recorded in Volume 1766, Page 701, Official Records
	Guadalupe County, Texas, and being more particularly described as
	follows:
	Beginning at a point in the northwest right-of-way line of Dowdy
	Road for the southeast corner of a tract of land called 251.468
	acres, described in Volume 897, Page 545, Official Records
	Guadalupe County, Texas, the southwest corner of the 391.262 acre
	tract and the herein described tract.
	Thence, North 00° 42' 22" W, 5775.99 feet with the east line of the
	251.468 acre tract and the west line of the 391.262 acre tract, to a
	point for the northeast corner of the 251.468 acre tract, the
	northwest corner of the 391.262 acre tract and the herein described
	tract.
	Thence, in an easterly direction with westernmost north line of the
	391.262 acre tract as follows:
	N 88° 33' 40" E, 52.89 feet to a point for an angle point.
	N 88° 22' 45" E, 295.62 feet to a point for an interior corner
	of the 391.262 acre tract and the herein described tract.
	Thence, N 00° 32' 11" E, 246.42 feet and N 00° 28' 10" E, 193.80 feet
	with the northernmost west line of the 391.262 acre tract to a point
	for the northernmost northwest corner of the 391.262 acre tract and
	the herein described tract.
	Thence, in an easterly direction with the northernmost north line
	of the 391.262 acre tract as follows:
	N 88° 55' 39" E, 262.26 feet to a point for an angle point.
	N 89° 28' 30" E, 637.99 feet to a point for an angle point.
	N 89° 33' 42" E, 209.00 feet to a point for the northernmost
	northeast corner of the 391.262 acre tract and the herein described
	tract.
	Thence, S 00° 33' 33" E, 526.42 feet, and S 00° 20' 25" E, 529.32 feet
	with the northernmost east line of the 391.262 acre tract to a point
	for an interior corner of the 391.262 acre tract and the herein
	described tract.
	Thence, S 40° 41' 11" E, 337.20 feet and S 40° 33' 23" E, 487.11 feet
	with the northernmost northeast line of the 391.262 acre tract to a
	point for an interior corner of the 391.262 acre tract and the
	herein described tract.
	Thence, in an easterly direction with the easternmost north line of
	the 391.262 acre tract as follows:
	N 89° 23' 38" E, 405.50 feet to a point for an angle point.
	N 89° 25' 58" E, 858.03 feet to a point for an angle point.
	S 62° 26' 18" E, 74.61 feet a point for the easternmost
	northeast corner of the 391.262 acre tract and the herein described
	tract.
	Thence, in a southerly direction with the easternmost east line of
	the 391.262 acre tract as follows:
	S 04° 41' 29" W, 1095.75 feet to a point for an angle point.
	S 04° 36' 26" W, 459.19 feet to a point for an angle point.
	S 04° 49' 09" W, 843.40 feet to a point for an angle point.
	S 05° 36' 24" W, 501.16 feet to a point for an angle point.
	S 05° 23' 25" W, 848.09 feet to a point for an angle point.
	S 04° 06' 59" W, 703.93 feet to a point for an angle point.
	S 13° 57' 35" W, 119.70 feet to a point for the easternmost
	southeast corner of the 391.262 acre tract and the herein described
	tract.
	Thence, N 86° 05' 25" W, 736.10 feet with the easternmost south line
	of the 391.262 acre tract to a point for an interior corner of the
	391.262 acre tract and the herein described tract.
	Thence, S 19° 54' 35" W, 607.70 feet with the southernmost east line
	of the 391.262 acre tract to a point in the northeast right-of-way
	line Dowdy Road for the southernmost southeast corner of the
	391.262 acre tract and the herein described tract.
	Thence, in a westerly direction with the northeast, the north and
	the northwest right-of-way line Dowdy Road and the southwest, south
	and southeast line of the of the 391.262 acre tract and the 251.468
	acre tract as follows:
	N 70° 30' 16" W, 755.54 feet to a point for an angle point.
	N 69° 05' 26" W, 503.83 feet to a point for an angle point.
	N 68° 45' 04" W, 353.18 feet to a point for an angle point.
	N 77° 00' 24" W, 96.51 feet to a point for an angle point.
	N 85° 04' 56" W, 81.52 feet to a point for an angle point.
	S 82° 47' 06" W, 100.40 feet to a point for an angle point.
	S 76° 58' 29" W, 90.59 feet to a point for an angle point.
	S 67° 51' 26" W, 46.21 feet to the Place of Beginning and
	containing 391.0 acres of land more or less.
	SECTION 3.  (a)  The legal notice of the intention to
	introduce this Act, setting forth the general substance of this
	Act, has been published as provided by law, and the notice and a
	copy of this Act have been furnished to all persons, agencies,
	officials, or entities to which they are required to be furnished
	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
	Government Code.
	(b)  The governor, one of the required recipients, has
	submitted the notice and Act to the Texas Commission on
	Environmental Quality.
	(c)  The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor, the
	lieutenant governor, and the speaker of the house of
	representatives within the required time.
	(d)  All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 4.  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, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 4755 was passed by the House on May
	15, 2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 4755 on May 29, 2009, by the following vote:  Yeas 144, Nays 0,
	1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4755 was passed by the Senate, with
	amendments, on May 27, 2009, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor