Texas 2017 - 85th Regular

Texas House Bill HB2332 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Thompson of Brazoria H.B. No. 2332
2		-	(Senate Sponsor - Taylor of Galveston)
3		-	(In the Senate - Received from the House May 1, 2017;
4		-	May 4, 2017, read first time and referred to Committee on
5		-	Administration; May 9, 2017, reported favorably by the following
6		-	vote: Yeas 6, Nays 0; May 9, 2017, sent to printer.)
7		-	Click here to see the committee vote
	1	+	H.B. No. 2332
8	2
9	3
10		-	A BILL TO BE ENTITLED
11	4		AN ACT
12	5		relating to the creation of the Brazoria County Management District
13	6		No. 1; providing authority to issue bonds; providing authority to
14	7		impose assessments, fees, and taxes.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Subtitle C, Title 4, Special District Local Laws
17	10		Code, is amended by adding Chapter 3944 to read as follows:
18	11		CHAPTER 3944. BRAZORIA COUNTY MANAGEMENT DISTRICT NO. 1
19	12		SUBCHAPTER A. GENERAL PROVISIONS
20	13		Sec. 3944.001. DEFINITIONS. In this chapter:
21	14		(1) "Board" means the district's board of directors.
22	15		(2) "County" means Brazoria County.
23	16		(3) "Director" means a board member.
24	17		(4) "District" means the Brazoria County Management
25	18		District No. 1.
26	19		Sec. 3944.002. CREATION AND NATURE OF DISTRICT; IMMUNITY.
27	20		(a) The district is a special district created under Section 59,
28	21		Article XVI, Texas Constitution.
29	22		(b) The district is a governmental unit, as provided by
30	23		Section 375.004, Local Government Code.
31	24		(c) This chapter does not waive any governmental or
32	25		sovereign immunity from suit, liability, or judgment that would
33	26		otherwise apply to the district.
34	27		Sec. 3944.003. CONFIRMATION AND DIRECTORS' ELECTION
35	28		REQUIRED. The temporary directors shall hold an election to
36	29		confirm the creation of the district and to elect five permanent
37	30		directors as provided by Section 49.102, Water Code.
38	31		Sec. 3944.004. CONSENT OF MUNICIPALITY REQUIRED. The
39	32		temporary directors may not hold an election under Section 3944.003
40	33		until each municipality in whose corporate limits or
41	34		extraterritorial jurisdiction the district is located has
42	35		consented by ordinance or resolution to the creation of the
43	36		district and to the inclusion of land in the district.
44	37		Sec. 3944.005. PURPOSE; DECLARATION OF INTENT. (a) The
45	38		creation of the district is essential to accomplish the purposes of
46	39		Sections 52 and 52-a, Article III, and Section 59, Article XVI,
47	40		Texas Constitution, and other public purposes stated in this
48	41		chapter. By creating the district, the legislature has established
49	42		a program to accomplish the public purposes set out in Sections 52
50	43		and 52-a, Article III, Texas Constitution.
51	44		(b) The creation of the district is necessary to promote,
52	45		develop, encourage, and maintain employment, commerce,
53	46		transportation, housing, tourism, recreation, the arts,
54	47		entertainment, economic development, safety, and the public
55	48		welfare in the district.
56	49		(c) This chapter and the creation of the district may not be
57	50		interpreted to relieve a municipality or the county from providing
58	51		the level of services provided as of the effective date of the Act
59	52		enacting this chapter to the area in the district. The district is
60	53		created to supplement and not to supplant governmental services
61	54		provided in the district.
62	55		Sec. 3944.006. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
63	56		The district is created to serve a public use and benefit.
64	57		(b) All land and other property included in the district
65	58		will benefit from the improvements and services to be provided by
66	59		the district under powers conferred by Sections 52 and 52-a,
67	60		Article III, and Section 59, Article XVI, Texas Constitution, and
68	61		other powers granted under this chapter.
69	62		(c) The creation of the district is in the public interest
70	63		and is essential to further the public purposes of:
71	64		(1) developing and diversifying the economy of the
72	65		state;
73	66		(2) eliminating unemployment and underemployment; and
74	67		(3) developing or expanding transportation and
75	68		commerce.
76	69		(d) The district will:
77	70		(1) promote the health, safety, and general welfare of
78	71		residents, employers, potential employees, employees, visitors,
79	72		and consumers in the district, and of the public;
80	73		(2) provide needed funding for the district to
81	74		preserve, maintain, and enhance the economic health and vitality of
82	75		the district territory as a community and business center; and
83	76		(3) promote the health, safety, welfare, and enjoyment
84	77		of the public by providing pedestrian ways, road facilities,
85	78		transit facilities, parking facilities, enhanced infrastructure,
86	79		recreational facilities, public art objects, water and wastewater
87	80		facilities, and drainage facilities, and by landscaping and
88	81		developing certain areas in the district, which are necessary for
89	82		the restoration, preservation, and enhancement of scenic beauty.
90	83		(e) Pedestrian ways along or across a street, whether at
91	84		grade or above or below the surface, and street lighting, street
92	85		landscaping, parking, and street art objects are parts of and
93	86		necessary components of a street and are considered to be a street
94	87		or road improvement.
95	88		(f) The district will not act as the agent or
96	89		instrumentality of any private interest even though the district
97	90		will benefit many private interests as well as the public.
98	91		Sec. 3944.007. DISTRICT TERRITORY. (a) The district is
99	92		initially composed of the territory described by Section 2 of the
100	93		Act enacting this chapter.
101	94		(b) The boundaries and field notes of the district contained
102	95		in Section 2 of the Act enacting this chapter form a closure. A
103	96		mistake in the field notes or in copying the field notes in the
104	97		legislative process does not affect the district's:
105	98		(1) organization, existence, or validity;
106	99		(2) right to issue any type of bonds, notes, or other
107	100		obligations for a purpose for which the district is created or to
108	101		pay the principal of and interest on the bonds, notes, or other
109	102		obligations;
110	103		(3) right to impose or collect an assessment or tax; or
111	104		(4) legality or operation.
112	105		Sec. 3944.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
113	106		All or any part of the area of the district is eligible to be
114	107		included in:
115	108		(1) a tax increment reinvestment zone created under
116	109		Chapter 311, Tax Code;
117	110		(2) a tax abatement reinvestment zone created under
118	111		Chapter 312, Tax Code;
119	112		(3) an enterprise zone created under Chapter 2303,
120	113		Government Code; or
121	114		(4) an industrial district created under Chapter 42,
122	115		Local Government Code.
123	116		Sec. 3944.009. APPLICABILITY OF MUNICIPAL MANAGEMENT
124	117		DISTRICTS LAW. Except as otherwise provided by this chapter,
125	118		Chapter 375, Local Government Code, applies to the district.
126	119		Sec. 3944.010. LIBERAL CONSTRUCTION OF CHAPTER. This
127	120		chapter shall be liberally construed in conformity with the
128	121		findings and purposes stated in this chapter.
129	122		Sec. 3944.011. CONFLICTS OF LAW. This chapter prevails
130	123		over any provision of general law, including a provision of Chapter
131	124		375, Local Government Code, or Chapter 49, Water Code, that is in
132	125		conflict or inconsistent with this chapter.
133	126		SUBCHAPTER B. BOARD OF DIRECTORS
134	127		Sec. 3944.051. GOVERNING BODY; TERMS. (a) The district is
135	128		governed by a board of five directors elected or appointed as
136	129		provided by this chapter and Subchapter D, Chapter 49, Water Code.
137	130		(b) Except as provided by Section 3944.053, directors serve
138	131		staggered four-year terms.
139	132		Sec. 3944.052. COMPENSATION. A director is entitled to
140	133		receive fees of office and reimbursement for actual expenses as
141	134		provided by Section 49.060, Water Code. Sections 375.069 and
142	135		375.070, Local Government Code, do not apply to the board.
143	136		Sec. 3944.053. TEMPORARY DIRECTORS. (a) On or after the
144	137		effective date of the Act creating this chapter, the owner or owners
145	138		of a majority of the assessed value of the real property in the
146	139		district according to the most recent certified tax appraisal roll
147	140		for the county may submit a petition to the commission requesting
148	141		that the commission appoint as temporary directors the five persons
149	142		named in the petition. The commission shall appoint as temporary
150	143		directors the five persons named in the petition.
151	144		(b) Temporary directors serve until the earlier of:
152	145		(1) the date permanent directors are elected under
153	146		Section 3944.003; or
154	147		(2) the fourth anniversary of the effective date of
155	148		the Act creating this chapter.
156	149		(c) If permanent directors have not been elected under
157	150		Section 3944.003 and the terms of the temporary directors have
158	151		expired, successor temporary directors shall be appointed or
159	152		reappointed as provided by Subsection (d) to serve terms that
160	153		expire on the earlier of:
161	154		(1) the date permanent directors are elected under
162	155		Section 3944.003; or
163	156		(2) the fourth anniversary of the date of the
164	157		appointment or reappointment.
165	158		(d) If Subsection (c) applies, the owner or owners of a
166	159		majority of the assessed value of the real property in the district
167	160		according to the most recent certified tax appraisal roll for the
168	161		county may submit a petition to the commission requesting that the
169	162		commission appoint as successor temporary directors the five
170	163		persons named in the petition. The commission shall appoint as
171	164		successor temporary directors the five persons named in the
172	165		petition.
173	166		Sec. 3944.054. DISQUALIFICATION OF DIRECTORS. Section
174	167		49.052, Water Code, applies to the members of the board.
175	168		SUBCHAPTER C. POWERS AND DUTIES
176	169		Sec. 3944.101. GENERAL POWERS AND DUTIES. The district has
177	170		the powers and duties necessary to accomplish the purposes for
178	171		which the district is created.
179	172		Sec. 3944.102. IMPROVEMENT PROJECTS AND SERVICES. (a) The
180	173		district may provide, design, construct, acquire, improve,
181	174		relocate, operate, maintain, or finance an improvement project or
182	175		service using money available to the district, or contract with a
183	176		governmental or private entity to provide, design, construct,
184	177		acquire, improve, relocate, operate, maintain, or finance an
185	178		improvement project or service authorized under this chapter or
186	179		under Chapter 375, Local Government Code.
187	180		(b) An improvement project described by Subsection (a) may
188	181		be located inside or outside the district.
189	182		Sec. 3944.103. RECREATIONAL FACILITIES. The district may
190	183		develop or finance recreational facilities as authorized by Chapter
191	184		375, Local Government Code, Sections 52 and 52-a, Article III,
192	185		Texas Constitution, Section 59, Article XVI, Texas Constitution,
193	186		and any other law that applies to the district.
194	187		Sec. 3944.104. AUTHORITY FOR ROAD PROJECTS. Under Section
195	188		52, Article III, Texas Constitution, the district may own, operate,
196	189		maintain, design, acquire, construct, finance, issue bonds, notes,
197	190		or other obligations for, improve, and convey to this state, a
198	191		county, or a municipality for ownership, operation, and maintenance
199	192		macadamized, graveled, or paved roads or improvements, including
200	193		storm drainage, in aid of those roads.
201	194		Sec. 3944.105. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
202	195		(a) The district may convey a road project authorized by Section
203	196		3944.104 to:
204	197		(1) a municipality or county that will operate and
205	198		maintain the road if the municipality or county has approved the
206	199		plans and specifications of the road project; or
207	200		(2) the state if the state will operate and maintain
208	201		the road and the Texas Transportation Commission has approved the
209	202		plans and specifications of the road project.
210	203		(b) Except as provided by Subsection (c), the district shall
211	204		operate and maintain a road project authorized by Section 3944.104
212	205		that the district implements and does not convey to a municipality,
213	206		a county, or this state under Subsection (a).
214	207		(c) The district may agree in writing with a municipality, a
215	208		county, or this state to assign operation and maintenance duties to
216	209		the district, the municipality, the county, or this state in a
217	210		manner other than the manner described in Subsections (a) and (b).
218	211		Sec. 3944.106. DEVELOPMENT CORPORATION POWERS. The
219	212		district, using money available to the district, may exercise the
220	213		powers given to a development corporation under Chapter 505, Local
221	214		Government Code, including the power to own, operate, acquire,
222	215		construct, lease, improve, or maintain a project under that
223	216		chapter.
224	217		Sec. 3944.107. NONPROFIT CORPORATION. (a) The board by
225	218		resolution may authorize the creation of a nonprofit corporation to
226	219		assist and act for the district in implementing a project or
227	220		providing a service authorized by this chapter.
228	221		(b) The nonprofit corporation:
229	222		(1) has each power of and is considered to be a local
230	223		government corporation created under Subchapter D, Chapter 431,
231	224		Transportation Code; and
232	225		(2) may implement any project and provide any service
233	226		authorized by this chapter.
234	227		(c) The board shall appoint the board of directors of the
235	228		nonprofit corporation. The board of directors of the nonprofit
236	229		corporation shall serve in the same manner as the board of directors
237	230		of a local government corporation created under Subchapter D,
238	231		Chapter 431, Transportation Code, except that a board member is not
239	232		required to reside in the district.
240	233		Sec. 3944.108. AGREEMENTS; GRANTS. (a) As provided by
241	234		Chapter 375, Local Government Code, the district may make an
242	235		agreement with or accept a gift, grant, or loan from any person.
243	236		(b) The implementation of a project is a governmental
244	237		function or service for the purposes of Chapter 791, Government
245	238		Code.
246	239		Sec. 3944.109. LAW ENFORCEMENT SERVICES. Section 49.216,
247	240		Water Code, applies to the district.
248	241		Sec. 3944.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
249	242		district may join and pay dues to a charitable or nonprofit
250	243		organization that performs a service or provides an activity
251	244		consistent with the furtherance of a district purpose.
252	245		Sec. 3944.111. ECONOMIC DEVELOPMENT. (a) The district may
253	246		engage in activities that accomplish the economic development
254	247		purposes of the district.
255	248		(b) The district may establish and provide for the
256	249		administration of one or more programs to promote state or local
257	250		economic development and to stimulate business and commercial
258	251		activity in the district, including programs to:
259	252		(1) make loans and grants of public money; and
260	253		(2) provide district personnel and services.
261	254		(c) The district may create economic development programs
262	255		and exercise the economic development powers that:
263	256		(1) Chapter 380, Local Government Code, provides to a
264	257		municipality; and
265	258		(2) Subchapter A, Chapter 1509, Government Code,
266	259		provides to a municipality.
267	260		Sec. 3944.112. STRATEGIC PARTNERSHIP AGREEMENT. The
268	261		district may negotiate and enter into a written strategic
269	262		partnership agreement with a municipality under Section 43.0751,
270	263		Local Government Code.
271	264		Sec. 3944.113. REGIONAL PARTICIPATION AGREEMENT. The
272	265		district may negotiate and enter into a written regional
273	266		participation agreement with a municipality under Section 43.0754,
274	267		Local Government Code.
275	268		Sec. 3944.114. ANNEXATION OR EXCLUSION OF LAND. (a) The
276	269		district may annex land as provided by Subchapter J, Chapter 49,
277	270		Water Code.
278	271		(b) The district may exclude land as provided by Subchapter
279	272		J, Chapter 49, Water Code. Section 375.044(b), Local Government
280	273		Code, does not apply to the district.
281	274		(c) The district may include and exclude land as provided by
282	275		Sections 54.739-54.747, Water Code. A reference in those sections
283	276		to a "tax" means an ad valorem tax for the purposes of this
284	277		subsection.
285	278		(d) If the district adopts a sales and use tax authorized at
286	279		an election held under Section 3944.202 and subsequently includes
287	280		new territory in the district under this section, the district:
288	281		(1) is not required to hold another election to
289	282		approve the imposition of the sales and use tax in the included
290	283		territory; and
291	284		(2) shall impose the sales and use tax in the included
292	285		territory as provided by Chapter 321, Tax Code.
293	286		(e) If the district adopts a sales and use tax authorized at
294	287		an election held under Section 3944.202 and subsequently excludes
295	288		territory in the district under this section, the sales and use tax
296	289		is inapplicable to the excluded territory, as provided by Chapter
297	290		321, Tax Code, but is applicable to the territory remaining in the
298	291		district.
299	292		Sec. 3944.115. APPLICABILITY OF OTHER LAW TO CERTAIN
300	293		CONTRACTS. (a) Subchapter I, Chapter 49, Water Code, applies to a
301	294		district contract for construction work, equipment, materials, or
302	295		machinery. Notwithstanding Section 2269.003(a), Government Code,
303	296		the district may use a project delivery method described by
304	297		Subchapter I, Chapter 49, Water Code, or Subchapters A-G, I, and J,
305	298		Chapter 2269, Government Code.
306	299		(b) Notwithstanding Subsection (a), the board may adopt
307	300		rules governing the receipt of bids and the award of a district
308	301		contract and providing for the waiver of the competitive bid
309	302		process if:
310	303		(1) there is an emergency;
311	304		(2) the needed materials are available only from one
312	305		source;
313	306		(3) in a procurement requiring design by the supplier
314	307		competitive bidding would not be appropriate and competitive
315	308		negotiation, with proposals solicited from an adequate number of
316	309		qualified sources, would permit reasonable competition consistent
317	310		with the nature and requirements of the procurement; or
318	311		(4) after solicitation, it is ascertained that there
319	312		will be only one bidder.
320	313		(c) Section 375.223, Local Government Code, does not apply
321	314		to the district.
322	315		Sec. 3944.116. TERMS OF EMPLOYMENT; COMPENSATION. The
323	316		board may employ and establish the terms of employment and
324	317		compensation of an executive director or general manager and any
325	318		other district employees the board considers necessary.
326	319		Sec. 3944.117. PARKING FACILITIES. (a) The district may
327	320		acquire, lease as lessor or lessee, construct, develop, own,
328	321		operate, and maintain parking facilities or a system of parking
329	322		facilities, including lots, garages, parking terminals, or other
330	323		structures or accommodations for parking motor vehicles off the
331	324		streets and related appurtenances.
332	325		(b) The district's parking facilities serve the public
333	326		purposes of the district and are owned, used, and held for a public
334	327		purpose even if leased or operated by a private entity for a term of
335	328		years.
336	329		(c) The district's parking facilities are parts of and
337	330		necessary components of a street and are considered to be a street
338	331		or road improvement.
339	332		(d) The development and operation of the district's parking
340	333		facilities may be considered an economic development program.
341	334		Sec. 3944.118. NO EMINENT DOMAIN POWER. The district may
342	335		not exercise the power of eminent domain.
343	336		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
344	337		Sec. 3944.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
345	338		board by resolution shall establish the number of directors'
346	339		signatures and the procedure required for a disbursement or
347	340		transfer of district money.
348	341		Sec. 3944.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
349	342		The district may acquire, construct, finance, operate, maintain, or
350	343		provide any improvement or service authorized under this chapter or
351	344		Chapter 375, Local Government Code, using any money available to
352	345		the district.
353	346		Sec. 3944.153. PETITION REQUIRED FOR FINANCING SERVICES AND
354	347		IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
355	348		service or improvement project with assessments under this chapter
356	349		unless a written petition requesting that service or improvement
357	350		has been filed with the board.
358	351		(b) The petition must be signed by the owners of a majority
359	352		of the assessed value of real property in the district subject to
360	353		assessment according to the most recent certified tax appraisal
361	354		roll for the county.
362	355		Sec. 3944.154. METHOD OF NOTICE FOR HEARING. The district
363	356		may mail the notice required by Section 375.115(c), Local
364	357		Government Code, by certified or first class United States mail.
365	358		The board shall determine the method of notice.
366	359		Sec. 3944.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
367	360		The board by resolution may impose and collect an assessment for any
368	361		purpose authorized by this chapter in all or any part of the
369	362		district without regard to whether that area is already subject to
370	363		or overlaps with an area of the district that is subject to a prior
371	364		assessment imposed by the board.
372	365		(b) An assessment, a reassessment, or an assessment
373	366		resulting from an addition to or correction of the assessment roll
374	367		by the district, penalties and interest on an assessment or
375	368		reassessment, an expense of collection, and reasonable attorney's
376	369		fees incurred by the district are:
377	370		(1) a first and prior lien against the property
378	371		assessed;
379	372		(2) superior to any other lien or claim other than a
380	373		lien or claim for county, school district, or municipal ad valorem
381	374		taxes; and
382	375		(3) the personal liability of and a charge against the
383	376		owners of the property even if the owners are not named in the
384	377		assessment proceedings.
385	378		(c) The lien is effective from the date of the board's
386	379		resolution imposing the assessment until the date the assessment is
387	380		paid. The board may enforce the lien in the same manner that the
388	381		board may enforce an ad valorem tax lien against real property.
389	382		(d) The board may make a correction to or deletion from the
390	383		assessment roll that does not increase the amount of assessment of
391	384		any parcel of land without providing notice and holding a hearing in
392	385		the manner required for additional assessments.
393	386		Sec. 3944.156. TAX AND ASSESSMENT ABATEMENTS. The district
394	387		may designate reinvestment zones and may grant abatements of a tax
395	388		or assessment on property in the zones.
396	389		Sec. 3944.157. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS.
397	390		The district may not impose an assessment on the property,
398	391		including the equipment, rights-of-way, facilities, or
399	392		improvements, of:
400	393		(1) an electric utility or a power generation company
401	394		as defined by Section 31.002, Utilities Code;
402	395		(2) a gas utility as defined by Section 101.003 or
403	396		121.001, Utilities Code;
404	397		(3) a telecommunications provider as defined by
405	398		Section 51.002, Utilities Code; or
406	399		(4) a person who provides to the public cable
407	400		television or advanced telecommunications services.
408	401		Sec. 3944.158. RESIDENTIAL PROPERTY. Section 375.161,
409	402		Local Government Code, does not apply to:
410	403		(1) a tax imposed by the district; or
411	404		(2) a required payment for a service provided by the
412	405		district, including water and sewer service.
413	406		Sec. 3944.159. OPERATION AND MAINTENANCE TAX. (a) If
414	407		authorized at an election held under Section 3944.163, the district
415	408		may impose an annual operation and maintenance tax on taxable
416	409		property in the district in accordance with Section 49.107, Water
417	410		Code, for any district purpose, including to:
418	411		(1) operate and maintain the district;
419	412		(2) construct or acquire improvements; or
420	413		(3) provide a service.
421	414		(b) The board shall determine the tax rate. The rate may not
422	415		exceed the rate approved at the election.
423	416		(c) Section 49.107(h), Water Code, does not apply to the
424	417		district.
425	418		Sec. 3944.160. CONTRACT TAXES. In accordance with Section
426	419		49.108, Water Code, the district may impose a tax other than an
427	420		operation and maintenance tax and use the revenue derived from the
428	421		tax to make payments under a contract after the provisions of the
429	422		contract have been approved by a majority of the district voters
430	423		voting at an election held for that purpose.
431	424		Sec. 3944.161. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
432	425		AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
433	426		determined by the board.
434	427		(b) The district may by competitive bid or negotiated sale
435	428		issue bonds, notes, or other obligations payable wholly or partly
436	429		from taxes, including ad valorem taxes, or assessments, fees,
437	430		revenue, contract payments, grants, or other district money, or any
438	431		combination of those sources of money, to pay for any authorized
439	432		district purpose.
440	433		(c) In addition to any other terms authorized by the board
441	434		by bond order or resolution, the proceeds of the district's bonds
442	435		may be used for a reserve fund, credit enhancement, or capitalized
443	436		interest for the bonds.
444	437		(d) The limitation on the outstanding principal amount of
445	438		bonds, notes, and other obligations provided by Section 49.4645,
446	439		Water Code, does not apply to the district.
447	440		Sec. 3944.162. TAXES FOR BONDS. At the time the district
448	441		issues bonds payable wholly or partly from ad valorem taxes, the
449	442		board shall provide for the annual imposition of a continuing
450	443		direct ad valorem tax, without limit as to rate or amount, while all
451	444		or part of the bonds are outstanding as required and in the manner
452	445		provided by Sections 54.601 and 54.602, Water Code.
453	446		Sec. 3944.163. ELECTIONS REGARDING TAXES AND BONDS. (a)
454	447		The district may issue, without an election, bonds, notes, and
455	448		other obligations secured by:
456	449		(1) revenue other than ad valorem taxes; or
457	450		(2) contract payments described by Section 3944.160.
458	451		(b) The district must hold an election in the manner
459	452		provided by Subchapter L, Chapter 375, Local Government Code, to
460	453		obtain voter approval before the district may impose an ad valorem
461	454		tax or sales and use tax or issue bonds payable from ad valorem
462	455		taxes.
463	456		(c) Section 375.243, Local Government Code, does not apply
464	457		to the district.
465	458		(d) All or any part of any facilities or improvements that
466	459		may be acquired by a district through the issuance of district bonds
467	460		may be included in one single proposition to be voted on at the
468	461		election or the bonds may be submitted in several propositions.
469	462		Sec. 3944.164. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
470	463		OBLIGATIONS. Except as provided by Section 375.263, Local
471	464		Government Code, a municipality is not required to pay a bond, note,
472	465		or other obligation of the district.
473	466		Sec. 3944.165. AUDIT EXEMPTION. (a) The district may elect
474	467		to complete an annual financial report in lieu of an annual audit
475	468		under Section 375.096(a)(6), Local Government Code, if:
476	469		(1) the district had no bonds or other long-term (more
477	470		than one year) liabilities outstanding during the fiscal period;
478	471		(2) the district did not have gross receipts from
479	472		operations, loans, taxes, assessments, or contributions in excess
480	473		of $250,000 during the fiscal period; and
481	474		(3) the district's cash and temporary investments were
482	475		not in excess of $250,000 during the fiscal period.
483	476		(b) Each annual financial report prepared in accordance
484	477		with this section must be open to public inspection and accompanied
485	478		by an affidavit signed by a duly authorized representative of the
486	479		district attesting to the accuracy and authenticity of the
487	480		financial report.
488	481		(c) The annual financial report and affidavit shall be
489	482		substantially similar in form to the annual financial report and
490	483		affidavit forms prescribed by the executive director of the Texas
491	484		Commission on Environmental Quality under Section 49.198, Water
492	485		Code.
493	486		SUBCHAPTER E. SALES AND USE TAX
494	487		Sec. 3944.201. APPLICABILITY OF CERTAIN TAX CODE
495	488		PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
496	489		computation, administration, enforcement, and collection of the
497	490		sales and use tax authorized by this subchapter except to the extent
498	491		Chapter 321, Tax Code, is inconsistent with this chapter.
499	492		(b) A reference in Chapter 321, Tax Code, to a municipality
500	493		or the governing body of a municipality is a reference to the
501	494		district or the board, respectively.
502	495		Sec. 3944.202. ELECTION; ADOPTION OF TAX. (a) The district
503	496		may adopt a sales and use tax if authorized by a majority of the
504	497		voters of the district voting at an election held for that purpose.
505	498		(b) The board by order may call an election to authorize the
506	499		adoption of the sales and use tax. The election may be held on any
507	500		uniform election date and in conjunction with any other district
508	501		election.
509	502		(c) The ballot shall be printed to provide for voting for or
510	503		against the proposition: "Authorization of a sales and use tax in
511	504		the Brazoria County Management District No. 1 at a rate not to
512	505		exceed ____ percent" (insert rate of one or more increments of
513	506		one-eighth of one percent).
514	507		Sec. 3944.203. SALES AND USE TAX RATE. (a) On or after the
515	508		date the results are declared of an election held under Section
516	509		3944.202, at which the voters approved imposition of the tax
517	510		authorized by this subchapter, the board shall determine and adopt
518	511		by resolution or order the initial rate of the tax, which must be in
519	512		one or more increments of one-eighth of one percent.
520	513		(b) After the election held under Section 3944.202, the
521	514		board may increase or decrease the rate of the tax by one or more
522	515		increments of one-eighth of one percent.
523	516		(c) The initial rate of the tax or any rate resulting from
524	517		subsequent increases or decreases may not exceed the lesser of:
525	518		(1) the maximum rate authorized by the district voters
526	519		at the election held under Section 3944.202; or
527	520		(2) a rate that, when added to the rates of all sales
528	521		and use taxes imposed by other political subdivisions with
529	522		territory in the district, would result in the maximum combined
530	523		rate prescribed by Section 321.101(f), Tax Code, at any location in
531	524		the district.
532	525		Sec. 3944.204. TAX AFTER MUNICIPAL ANNEXATION. (a) This
533	526		section applies to the district after a municipality annexes part
534	527		of the territory in the district and imposes the municipality's
535	528		sales and use tax in the annexed territory.
536	529		(b) If at the time of annexation the district has
537	530		outstanding debt or other obligations payable wholly or partly from
538	531		district sales and use tax revenue, Section 321.102(g), Tax Code,
539	532		applies to the district.
540	533		(c) If at the time of annexation the district does not have
541	534		outstanding debt or other obligations payable wholly or partly from
542	535		district sales and use tax revenue, the district may:
543	536		(1) exclude the annexed territory from the district,
544	537		if the district has no outstanding debt or other obligations
545	538		payable from any source; or
546	539		(2) reduce the sales and use tax in the annexed
547	540		territory by resolution or order of the board to a rate that, when
548	541		added to the sales and use tax rate imposed by the municipality in
549	542		the annexed territory, is equal to the sales and use tax rate
550	543		imposed by the district in the district territory that was not
551	544		annexed by the municipality.
552	545		Sec. 3944.205. NOTIFICATION OF RATE CHANGE. The board
553	546		shall notify the comptroller of any changes made to the tax rate
554	547		under this subchapter in the same manner the municipal secretary
555	548		provides notice to the comptroller under Section 321.405(b), Tax
556	549		Code.
557	550		Sec. 3944.206. USE OF REVENUE. Revenue from the sales and
558	551		use tax imposed under this subchapter is for the use and benefit of
559	552		the district and may be used for any district purpose. The district
560	553		may pledge all or part of the revenue to the payment of bonds,
561	554		notes, or other obligations, and that pledge of revenue may be in
562	555		combination with other revenue, including tax revenue, available to
563	556		the district.
564	557		Sec. 3944.207. ABOLITION OF TAX. (a) Except as provided by
565	558		Subsection (b), the board may abolish the tax imposed under this
566	559		subchapter without an election.
567	560		(b) The board may not abolish the tax imposed under this
568	561		subchapter if the district has outstanding debt secured by the tax,
569	562		and repayment of the debt would be impaired by the abolition of the
570	563		tax.
571	564		(c) If the board abolishes the tax, the board shall notify
572	565		the comptroller of that action in the same manner the municipal
573	566		secretary provides notice to the comptroller under Section
574	567		321.405(b), Tax Code.
575	568		(d) If the board abolishes the tax or decreases the tax rate
576	569		to zero, a new election to authorize a sales and use tax must be held
577	570		under Section 3944.202 before the district may subsequently impose
578	571		the tax.
579	572		(e) This section does not apply to a decrease in the sales
580	573		and use tax authorized under Section 3944.204(c)(2).
581	574		SUBCHAPTER F. HOTEL OCCUPANCY TAX
582	575		Sec. 3944.251. DEFINITION. In this subchapter, "hotel" has
583	576		the meaning assigned by Section 156.001, Tax Code.
584	577		Sec. 3944.252. APPLICABILITY OF CERTAIN TAX CODE
585	578		PROVISIONS. (a) For purposes of this subchapter:
586	579		(1) a reference in Subchapter A, Chapter 352, Tax
587	580		Code, to a county is a reference to the district; and
588	581		(2) a reference in Subchapter A, Chapter 352, Tax
589	582		Code, to the commissioners court is a reference to the board.
590	583		(b) Except as inconsistent with this subchapter, Subchapter
591	584		A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
592	585		by this subchapter, including the collection of the tax, subject to
593	586		the limitations prescribed by Sections 352.002(b) and (c), Tax
594	587		Code.
595	588		Sec. 3944.253. TAX AUTHORIZED; USE OF REVENUE. The
596	589		district may impose a hotel occupancy tax for any purpose described
597	590		by Section 351.101 or 352.101, Tax Code.
598	591		Sec. 3944.254. TAX RATE. (a) The amount of the hotel
599	592		occupancy tax may not exceed the lesser of:
600	593		(1) the maximum rate prescribed by Section 352.003(a),
601	594		Tax Code; or
602	595		(2) a rate that, when added to the rates of all hotel
603	596		occupancy taxes imposed by other political subdivisions with
604	597		territory in the district and by this state, does not exceed the sum
605	598		of the rate prescribed by Section 351.0025(b), Tax Code, plus two
606	599		percent.
607	600		(b) The district tax is in addition to a tax imposed by a
608	601		municipality under Chapter 351, Tax Code, or by the county under
609	602		Chapter 352, Tax Code.
610	603		Sec. 3944.255. INFORMATION. The district may examine and
611	604		receive information related to the imposition of hotel occupancy
612	605		taxes to the same extent as if the district were a county.
613	606		Sec. 3944.256. USE OF REVENUE. The district may use revenue
614	607		from the hotel occupancy tax for any district purpose that is an
615	608		authorized use of hotel occupancy tax revenue under Chapter 351 or
616	609		352, Tax Code. The district may pledge all or part of the revenue to
617	610		the payment of bonds, notes, or other obligations and that pledge of
618	611		revenue may be in combination with other revenue available to the
619	612		district.
620	613		Sec. 3944.257. ABOLITION OF TAX. (a) Except as provided by
621	614		Subsection (b), the board may abolish the tax imposed under this
622	615		subchapter.
623	616		(b) The board may not abolish the tax imposed under this
624	617		subchapter if the district has outstanding debt secured by the tax,
625	618		and repayment of the debt would be impaired by the abolition of the
626	619		tax.
627	620		SUBCHAPTER G. DISSOLUTION BY BOARD
628	621		Sec. 3944.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING
629	622		DEBT. (a) The board may dissolve the district regardless of
630	623		whether the district has debt. Section 375.264, Local Government
631	624		Code, does not apply to the district.
632	625		(b) If the district has debt when it is dissolved, the
633	626		district shall remain in existence solely for the purpose of
634	627		discharging its debts. The dissolution is effective when all debts
635	628		have been discharged.
636	629		SECTION 2. The Brazoria County Management District No. 1
637	630		initially includes all the territory contained in the following
638	631		area:
639	632		A METES & BOUNDS description of a certain 745.8 acre tract of
640	633		land situated in the H.T.&B.R.R. Company Survey, Abstract No. 251,
641	634		the A. A. Talmage Survey, Abstract No. 554, the A. A. Talmage
642	635		Survey, Abstract No. 553 and the James L Holmes Heirs Survey,
643	636		Abstract No. 610, all in Brazoria County, Texas and being out of a
644	637		called 2856.555 acre tract of land (Tract 1) conveyed to Dee S.
645	638		Osborne by the deed recorded in Volume 1159, Page 715 of the
646	639		Brazoria County Deed Records, a called 98.2535 acre tract of land
647	640		conveyed to Southeast Properties, Ltd by the deed recorded in
648	641		Clerk's File No. 92-33050 of the Brazoria County Official Public
649	642		Records and a called 109.232 acre tract of land conveyed to
650	643		Southeast Properties, LTD recorded in Volume 1221, Page 362 of the
651	644		Brazoria County Deed Records; said 745.8 acre tract being more
652	645		particularly described as follows with all bearings being based on
653	646		the Texas Coordinate System, South Central Zone, NAD 83;
654	647		COMMENCING at a found concrete monument at the northeast
655	648		corner of said 98.2535 acres also being in the southerly
656	649		right-of-way line of FM 1462;
657	650		THENCE, South 86°56'14" West, along the northerly line of said
658	651		98.2535 and 2856.555 acre tracts, common with the southerly
659	652		right-of-way line of said FM 1462, a distance of 1005.62 feet to a
660	653		set 3/4-inch iron rod (with cap stamped "JonesCarter property
661	654		corner") for the POINT OF BEGINNING of the herein described tract;
662	655		THENCE, over and across said 98.2535 and 2856.555 acre tracts
663	656		the following seven (7) bearings and distances;
664	657		1) South 33°31'32" East, a distance of 2191.74 feet to
665	658		a point for corner;
666	659		2) South 32°16'42" East, a distance of 473.37 feet to a
667	660		point for corner;
668	661		3) South 33°50'21" East, a distance of 1651.19 feet to
669	662		a point for corner;
670	663		4) South 34°22'34" East, a distance of 700.44 feet to a
671	664		point for corner;
672	665		5) South 67°37'10" East, a distance of 885.98 feet to a
673	666		point for corner;
674	667		6) South 68°00'23" East, a distance of 1178.08 feet to
675	668		a point for corner;
676	669		7) South 67°16'53" East, a distance of 1365.55 feet to
677	670		the beginning of a non-tangent curve to the left;
678	671		THENCE, continuing over and across said 2856.555 acres and
679	672		along the arc of said non-tangent curve to the left having a radius
680	673		of 5280.00 feet, a central angle of 21°24'05", an arc length of
681	674		1972.22 feet, and a long chord bearing South 51°53'34" East, 1960.78
682	675		feet to a point at the beginning of a compound curve to the left;
683	676		THENCE, continuing over and across said 2856.555 acres and
684	677		along the arc of said compound curve to the left having a radius of
685	678		5280.00 feet, a central angle of 07°33'42", an arc length of 696.84
686	679		feet, and a long chord bearing South 48°41'21" East, 696.33 feet to a
687	680		set 3/4-inch iron rod (with cap stamped "JonesCarter property
688	681		corner") in the southeasterly line of said 2856.555 acre tract,
689	682		common with the northwesterly line of a called 110.21 acre tract of
690	683		land conveyed to Patrick D. Moller and wife, Suzanne Moller by the
691	684		deed recorded in Clerk's File No. 96-005947 of the Brazoria County
692	685		Official Public Records;
693	686		THENCE, South 59°36'38" West, along the southeasterly line of
694	687		said 2856.555 acre tract, common with the northwesterly lines of
695	688		said 110.21 acres and a called 5440.64 acre tract of land conveyed
696	689		to HRI Development Corporation by the deed recorded in Clerk's File
697	690		No. 88544-596 of the Brazoria County Official Public Records, a
698	691		distance of 2868.79 feet to a set 3/4-inch iron rod (with cap
699	692		stamped "JonesCarter property corner");
700	693		THENCE over and across said 2856.555 and 109.232 acre tracts
701	694		the following six (6) bearings and distances;
702	695		1) North 67°38'45" West, a distance of 2391.22 feet to
703	696		a point for corner;
704	697		2) North 67°31'02" West, a distance of 2641.65 feet to
705	698		a point for corner;
706	699		3) North 33°08'38" West, a distance of 825.02 feet to a
707	700		point for corner;
708	701		4) North 37°02'29" West, a distance of 125.27 feet to a
709	702		point for corner;
710	703		5) North 34°06'46" West, a distance of 525.85 feet to a
711	704		point for corner;
712	705		6) North 32°45'11" West, a distance of 1737.40 feet to
713	706		a point for corner;
714	707		THENCE, North 33°07'56" West, continuing over and across said
715	708		2856.55 and 109.232 acre tracts, a distance of 1574.72 feet to a set
716	709		3/4-inch iron rod (with cap stamped "JonesCarter property corner")
717	710		in a northerly line of said 2856.555 acre tract, common with the
718	711		southerly line of a called 80.74 acre tract of land (Tract 2)
719	712		conveyed to South Associates by the deed recorded in Volume 1420,
720	713		Page 710 of the Brazoria County Deed Records;
721	714		THENCE, North 86°55'53" East, along said common line, 256.28
722	715		feet to the southeast corner of said 80.74 acre tract also being in
723	716		the westerly line of the aforementioned 109.232 acre tract;
724	717		THENCE, North 02°27'26" West, along the westerly line of said
725	718		109.232 acre tract, common with the easterly line of said 80.74 acre
726	719		tract, a distance of 2584.43 feet to a set 3/4-inch iron rod (with
727	720		cap stamped "JonesCarter property corner") at the northwest corner
728	721		of said 109.232 acre tract also being in the southerly right-of-way
729	722		line of said FM 1462;
730	723		THENCE, North 87°01'47" East, along the northerly line of said
731	724		109.232 and 2856.555 acre tracts, common with the southerly
732	725		right-of-way line of said FM 1462, a distance of 1590.81 feet to the
733	726		POINT OF BEGINNING, CONTAINING 745.8 acres of land in Brazoria
734	727		County, Texas.
735	728		SECTION 3. (a) The legal notice of the intention to
736	729		introduce this Act, setting forth the general substance of this
737	730		Act, has been published as provided by law, and the notice and a
738	731		copy of this Act have been furnished to all persons, agencies,
739	732		officials, or entities to which they are required to be furnished
740	733		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
741	734		Government Code.
742	735		(b) The governor, one of the required recipients, has
743	736		submitted the notice and Act to the Texas Commission on
744	737		Environmental Quality.
745	738		(c) The Texas Commission on Environmental Quality has filed
746	739		its recommendations relating to this Act with the governor,
747	740		lieutenant governor, and speaker of the house of representatives
748	741		within the required time.
749	742		(d) The general law relating to consent by political
750	743		subdivisions to the creation of districts with conservation,
751	744		reclamation, and road powers and the inclusion of land in those
752	745		districts has been complied with.
753	746		(e) All requirements of the constitution and laws of this
754	747		state and the rules and procedures of the legislature with respect
755	748		to the notice, introduction, and passage of this Act have been
756	749		fulfilled and accomplished.
757	750		SECTION 4. This Act takes effect immediately if it receives
758	751		a vote of two-thirds of all the members elected to each house, as
759	752		provided by Section 39, Article III, Texas Constitution. If this
760	753		Act does not receive the vote necessary for immediate effect, this
761	754		Act takes effect September 1, 2017.
762		-	* * * * *
	755	+	______________________________ ______________________________
	756	+	President of the Senate Speaker of the House
	757	+	I certify that H.B. No. 2332 was passed by the House on April
	758	+	28, 2017, by the following vote: Yeas 118, Nays 16, 2 present, not
	759	+	voting.
	760	+	______________________________
	761	+	Chief Clerk of the House
	762	+	I certify that H.B. No. 2332 was passed by the Senate on May
	763	+	11, 2017, by the following vote: Yeas 30, Nays 1.
	764	+	______________________________
	765	+	Secretary of the Senate
	766	+	APPROVED: _____________________
	767	+	Date
	768	+	_____________________
	769	+	Governor