Texas 2017 - 85th Regular

Texas Senate Bill SB1100 Compare Versions

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1	1	By: Taylor of Galveston S.B. No. 1100
2	2	(In the Senate - Filed February 27, 2017; March 7, 2017,
3	3	read first time and referred to Committee on Intergovernmental
4	4	Relations; May 2, 2017, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 6, Nays 0;
6	6	May 2, 2017, sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR S.B. No. 1100 By: Garcia
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to the creation of the Brazoria County Management District
14	14	No. 1; providing authority to issue bonds; providing authority to
15	15	impose assessments, fees, and taxes.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Subtitle C, Title 4, Special District Local Laws
18	18	Code, is amended by adding Chapter 3944 to read as follows:
19	19	CHAPTER 3944. BRAZORIA COUNTY MANAGEMENT DISTRICT NO. 1
20	20	SUBCHAPTER A. GENERAL PROVISIONS
21	21	Sec. 3944.001. DEFINITIONS. In this chapter:
22	22	(1) "Board" means the district's board of directors.
23	23	(2) "County" means Brazoria County.
24	24	(3) "Director" means a board member.
25	25	(4) "District" means the Brazoria County Management
26	26	District No. 1.
27	27	Sec. 3944.002. CREATION AND NATURE OF DISTRICT; IMMUNITY.
28	28	(a) The district is a special district created under Section 59,
29	29	Article XVI, Texas Constitution.
30	30	(b) The district is a governmental unit, as provided by
31	31	Section 375.004, Local Government Code.
32	32	(c) This chapter does not waive any governmental or
33	33	sovereign immunity from suit, liability, or judgment that would
34	34	otherwise apply to the district.
35	35	Sec. 3944.003. CONFIRMATION AND DIRECTORS' ELECTION
36	36	REQUIRED. The temporary directors shall hold an election to
37	37	confirm the creation of the district and to elect five permanent
38	38	directors as provided by Section 49.102, Water Code.
39	39	Sec. 3944.004. CONSENT OF MUNICIPALITY REQUIRED. The
40	40	temporary directors may not hold an election under Section 3944.003
41	41	until each municipality in whose corporate limits or
42	42	extraterritorial jurisdiction the district is located has
43	43	consented by ordinance or resolution to the creation of the
44	44	district and to the inclusion of land in the district.
45	45	Sec. 3944.005. PURPOSE; DECLARATION OF INTENT. (a) The
46	46	creation of the district is essential to accomplish the purposes of
47	47	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
48	48	Texas Constitution, and other public purposes stated in this
49	49	chapter. By creating the district, the legislature has established
50	50	a program to accomplish the public purposes set out in Sections 52
51	51	and 52-a, Article III, Texas Constitution.
52	52	(b) The creation of the district is necessary to promote,
53	53	develop, encourage, and maintain employment, commerce,
54	54	transportation, housing, tourism, recreation, the arts,
55	55	entertainment, economic development, safety, and the public
56	56	welfare in the district.
57	57	(c) This chapter and the creation of the district may not be
58	58	interpreted to relieve a municipality or the county from providing
59	59	the level of services provided as of the effective date of the Act
60	60	enacting this chapter to the area in the district. The district is
61	61	created to supplement and not to supplant governmental services
62	62	provided in the district.
63	63	Sec. 3944.006. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
64	64	(a) The district is created to serve a public use and benefit.
65	65	(b) All land and other property included in the district
66	66	will benefit from the improvements and services to be provided by
67	67	the district under powers conferred by Sections 52 and 52-a,
68	68	Article III, and Section 59, Article XVI, Texas Constitution, and
69	69	other powers granted under this chapter.
70	70	(c) The creation of the district is in the public interest
71	71	and is essential to further the public purposes of:
72	72	(1) developing and diversifying the economy of the
73	73	state;
74	74	(2) eliminating unemployment and underemployment; and
75	75	(3) developing or expanding transportation and
76	76	commerce.
77	77	(d) The district will:
78	78	(1) promote the health, safety, and general welfare of
79	79	residents, employers, potential employees, employees, visitors,
80	80	and consumers in the district, and of the public;
81	81	(2) provide needed funding for the district to
82	82	preserve, maintain, and enhance the economic health and vitality of
83	83	the district territory as a community and business center; and
84	84	(3) promote the health, safety, welfare, and enjoyment
85	85	of the public by providing pedestrian ways, road facilities,
86	86	transit facilities, parking facilities, enhanced infrastructure,
87	87	recreational facilities, public art objects, water and wastewater
88	88	facilities, and drainage facilities, and by landscaping and
89	89	developing certain areas in the district, which are necessary for
90	90	the restoration, preservation, and enhancement of scenic beauty.
91	91	(e) Pedestrian ways along or across a street, whether at
92	92	grade or above or below the surface, and street lighting, street
93	93	landscaping, parking, and street art objects are parts of and
94	94	necessary components of a street and are considered to be a street
95	95	or road improvement.
96	96	(f) The district will not act as the agent or
97	97	instrumentality of any private interest even though the district
98	98	will benefit many private interests as well as the public.
99	99	Sec. 3944.007. DISTRICT TERRITORY. (a) The district is
100	100	initially composed of the territory described by Section 2 of the
101	101	Act enacting this chapter.
102	102	(b) The boundaries and field notes of the district contained
103	103	in Section 2 of the Act enacting this chapter form a closure. A
104	104	mistake in the field notes or in copying the field notes in the
105	105	legislative process does not affect the district's:
106	106	(1) organization, existence, or validity;
107	107	(2) right to issue any type of bonds, notes, or other
108	108	obligations for a purpose for which the district is created or to
109	109	pay the principal of and interest on the bonds, notes, or other
110	110	obligations;
111	111	(3) right to impose or collect an assessment or tax; or
112	112	(4) legality or operation.
113	113	Sec. 3944.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
114	114	All or any part of the area of the district is eligible to be
115	115	included in:
116	116	(1) a tax increment reinvestment zone created under
117	117	Chapter 311, Tax Code;
118	118	(2) a tax abatement reinvestment zone created under
119	119	Chapter 312, Tax Code;
120	120	(3) an enterprise zone created under Chapter 2303,
121	121	Government Code; or
122	122	(4) an industrial district created under Chapter 42,
123	123	Local Government Code.
124	124	Sec. 3944.009. APPLICABILITY OF MUNICIPAL MANAGEMENT
125	125	DISTRICTS LAW. Except as otherwise provided by this chapter,
126	126	Chapter 375, Local Government Code, applies to the district.
127	127	Sec. 3944.010. LIBERAL CONSTRUCTION OF CHAPTER. This
128	128	chapter shall be liberally construed in conformity with the
129	129	findings and purposes stated in this chapter.
130	130	Sec. 3944.011. CONFLICTS OF LAW. This chapter prevails
131	131	over any provision of general law, including a provision of Chapter
132	132	375, Local Government Code, or Chapter 49, Water Code, that is in
133	133	conflict or inconsistent with this chapter.
134	134	SUBCHAPTER B. BOARD OF DIRECTORS
135	135	Sec. 3944.051. GOVERNING BODY; TERMS. (a) The district is
136	136	governed by a board of five directors elected or appointed as
137	137	provided by this chapter and Subchapter D, Chapter 49, Water Code.
138	138	(b) Except as provided by Section 3944.053, directors serve
139	139	staggered four-year terms.
140	140	Sec. 3944.052. COMPENSATION. A director is entitled to
141	141	receive fees of office and reimbursement for actual expenses as
142	142	provided by Section 49.060, Water Code. Sections 375.069 and
143	143	375.070, Local Government Code, do not apply to the board.
144	144	Sec. 3944.053. TEMPORARY DIRECTORS. (a) On or after the
145	145	effective date of the Act creating this chapter, the owner or owners
146	146	of a majority of the assessed value of the real property in the
147	147	district according to the most recent certified tax appraisal roll
148	148	for the county may submit a petition to the Texas Commission on
149	149	Environmental Quality requesting that the commission appoint as
150	150	temporary directors the five persons named in the petition. The
151	151	commission shall appoint as temporary directors the five persons
152	152	named in the petition.
153	153	(b) Temporary directors serve until the earlier of:
154	154	(1) the date permanent directors are elected under
155	155	Section 3944.003; or
156	156	(2) the fourth anniversary of the effective date of
157	157	the Act creating this chapter.
158	158	(c) If permanent directors have not been elected under
159	159	Section 3944.003 and the terms of the temporary directors have
160	160	expired, successor temporary directors shall be appointed or
161	161	reappointed as provided by Subsection (d) to serve terms that
162	162	expire on the earlier of:
163	163	(1) the date permanent directors are elected under
164	164	Section 3944.003; or
165	165	(2) the fourth anniversary of the date of the
166	166	appointment or reappointment.
167	167	(d) If Subsection (c) applies, the owner or owners of a
168	168	majority of the assessed value of the real property in the district
169	169	according to the most recent certified tax appraisal roll for the
170	170	county may submit a petition to the Texas Commission on
171	171	Environmental Quality requesting that the commission appoint as
172	172	successor temporary directors the five persons named in the
173	173	petition. The commission shall appoint as successor temporary
174	174	directors the five persons named in the petition.
175	175	Sec. 3944.054. DISQUALIFICATION OF DIRECTORS. Section
176	176	49.052, Water Code, applies to the members of the board.
177	177	SUBCHAPTER C. POWERS AND DUTIES
178	178	Sec. 3944.101. GENERAL POWERS AND DUTIES. The district has
179	179	the powers and duties necessary to accomplish the purposes for
180	180	which the district is created.
181	181	Sec. 3944.102. IMPROVEMENT PROJECTS AND SERVICES. (a) The
182	182	district may provide, design, construct, acquire, improve,
183	183	relocate, operate, maintain, or finance an improvement project or
184	184	service using money available to the district, or contract with a
185	185	governmental or private entity to provide, design, construct,
186	186	acquire, improve, relocate, operate, maintain, or finance an
187	187	improvement project or service authorized under this chapter or
188	188	under Chapter 375, Local Government Code.
189	189	(b) An improvement project described by Subsection (a) may
190	190	be located inside or outside the district.
191	191	Sec. 3944.103. RECREATIONAL FACILITIES. The district may
192	192	develop or finance recreational facilities as authorized by Chapter
193	193	375, Local Government Code, Sections 52 and 52-a, Article III,
194	194	Texas Constitution, Section 59, Article XVI, Texas Constitution,
195	195	and any other law that applies to the district.
196	196	Sec. 3944.104. AUTHORITY FOR ROAD PROJECTS. Under Section
197	197	52, Article III, Texas Constitution, the district may own, operate,
198	198	maintain, design, acquire, construct, finance, issue bonds, notes,
199	199	or other obligations for, improve, and convey to this state, a
200	200	county, or a municipality for ownership, operation, and maintenance
201	201	macadamized, graveled, or paved roads or improvements, including
202	202	storm drainage, in aid of those roads.
203	203	Sec. 3944.105. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
204	204	(a) The district may convey a road project authorized by Section
205	205	3944.104 to:
206	206	(1) a municipality or county that will operate and
207	207	maintain the road if the municipality or county has approved the
208	208	plans and specifications of the road project; or
209	209	(2) the state if the state will operate and maintain
210	210	the road and the Texas Transportation Commission has approved the
211	211	plans and specifications of the road project.
212	212	(b) Except as provided by Subsection (c), the district shall
213	213	operate and maintain a road project authorized by Section 3944.104
214	214	that the district implements and does not convey to a municipality,
215	215	a county, or this state under Subsection (a).
216	216	(c) The district may agree in writing with a municipality, a
217	217	county, or this state to assign operation and maintenance duties to
218	218	the district, the municipality, the county, or this state in a
219	219	manner other than the manner described in Subsections (a) and (b).
220	220	Sec. 3944.106. DEVELOPMENT CORPORATION POWERS. The
221	221	district, using money available to the district, may exercise the
222	222	powers given to a development corporation under Chapter 505, Local
223	223	Government Code, including the power to own, operate, acquire,
224	224	construct, lease, improve, or maintain a project under that
225	225	chapter.
226	226	Sec. 3944.107. NONPROFIT CORPORATION. (a) The board by
227	227	resolution may authorize the creation of a nonprofit corporation to
228	228	assist and act for the district in implementing a project or
229	229	providing a service authorized by this chapter.
230	230	(b) The nonprofit corporation:
231	231	(1) has each power of and is considered to be a local
232	232	government corporation created under Subchapter D, Chapter 431,
233	233	Transportation Code; and
234	234	(2) may implement any project and provide any service
235	235	authorized by this chapter.
236	236	(c) The board shall appoint the board of directors of the
237	237	nonprofit corporation. The board of directors of the nonprofit
238	238	corporation shall serve in the same manner as the board of directors
239	239	of a local government corporation created under Subchapter D,
240	240	Chapter 431, Transportation Code, except that a board member is not
241	241	required to reside in the district.
242	242	Sec. 3944.108. AGREEMENTS; GRANTS. (a) As provided by
243	243	Chapter 375, Local Government Code, the district may make an
244	244	agreement with or accept a gift, grant, or loan from any person.
245	245	(b) The implementation of a project is a governmental
246	246	function or service for the purposes of Chapter 791, Government
247	247	Code.
248	248	Sec. 3944.109. LAW ENFORCEMENT SERVICES. Section 49.216,
249	249	Water Code, applies to the district.
250	250	Sec. 3944.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
251	251	district may join and pay dues to a charitable or nonprofit
252	252	organization that performs a service or provides an activity
253	253	consistent with the furtherance of a district purpose.
254	254	Sec. 3944.111. ECONOMIC DEVELOPMENT. (a) The district
255	255	may engage in activities that accomplish the economic development
256	256	purposes of the district.
257	257	(b) The district may establish and provide for the
258	258	administration of one or more programs to promote state or local
259	259	economic development and to stimulate business and commercial
260	260	activity in the district, including programs to:
261	261	(1) make loans and grants of public money; and
262	262	(2) provide district personnel and services.
263	263	(c) The district may create economic development programs
264	264	and exercise the economic development powers that:
265	265	(1) Chapter 380, Local Government Code, provides to a
266	266	municipality; and
267	267	(2) Subchapter A, Chapter 1509, Government Code,
268	268	provides to a municipality.
269	269	Sec. 3944.112. STRATEGIC PARTNERSHIP AGREEMENT. The
270	270	district may negotiate and enter into a written strategic
271	271	partnership agreement with a municipality under Section 43.0751,
272	272	Local Government Code.
273	273	Sec. 3944.113. REGIONAL PARTICIPATION AGREEMENT. The
274	274	district may negotiate and enter into a written regional
275	275	participation agreement with a municipality under Section 43.0754,
276	276	Local Government Code.
277	277	Sec. 3944.114. ANNEXATION OR EXCLUSION OF LAND. (a) The
278	278	district may annex land as provided by Subchapter J, Chapter 49,
279	279	Water Code.
280	280	(b) The district may exclude land as provided by Subchapter
281	281	J, Chapter 49, Water Code. Section 375.044(b), Local Government
282	282	Code, does not apply to the district.
283	283	(c) The district may include and exclude land as provided by
284	284	Sections 54.739-54.747, Water Code. A reference in those sections
285	285	to a "tax" means an ad valorem tax for the purposes of this
286	286	subsection.
287	287	(d) If the district adopts a sales and use tax authorized at
288	288	an election held under Section 3944.202 and subsequently includes
289	289	new territory in the district under this section, the district:
290	290	(1) is not required to hold another election to
291	291	approve the imposition of the sales and use tax in the included
292	292	territory; and
293	293	(2) shall impose the sales and use tax in the included
294	294	territory as provided by Chapter 321, Tax Code.
295	295	(e) If the district adopts a sales and use tax authorized at
296	296	an election held under Section 3944.202 and subsequently excludes
297	297	territory in the district under this section, the sales and use tax
298	298	is inapplicable to the excluded territory, as provided by Chapter
299	299	321, Tax Code, but is applicable to the territory remaining in the
300	300	district.
301	301	Sec. 3944.115. APPLICABILITY OF OTHER LAW TO CERTAIN
302	302	CONTRACTS. (a) Subchapter I, Chapter 49, Water Code, applies to a
303	303	district contract for construction work, equipment, materials, or
304	304	machinery. Notwithstanding Section 2269.003(a), Government Code,
305	305	the district may use a project delivery method described by
306	306	Subchapter I, Chapter 49, Water Code, or Subchapters A-G, I, and J,
307	307	Chapter 2269, Government Code.
308	308	(b) Notwithstanding Subsection (a), the board may adopt
309	309	rules governing the receipt of bids and the award of a district
310	310	contract and providing for the waiver of the competitive bid
311	311	process if:
312	312	(1) there is an emergency;
313	313	(2) the needed materials are available only from one
314	314	source;
315	315	(3) in a procurement requiring design by the supplier
316	316	competitive bidding would not be appropriate and competitive
317	317	negotiation, with proposals solicited from an adequate number of
318	318	qualified sources, would permit reasonable competition consistent
319	319	with the nature and requirements of the procurement; or
320	320	(4) after solicitation, it is ascertained that there
321	321	will be only one bidder.
322	322	(c) Section 375.223, Local Government Code, does not apply
323	323	to the district.
324	324	Sec. 3944.116. TERMS OF EMPLOYMENT; COMPENSATION. The
325	325	board may employ and establish the terms of employment and
326	326	compensation of an executive director or general manager and any
327	327	other district employees the board considers necessary.
328	328	Sec. 3944.117. PARKING FACILITIES. (a) The district may
329	329	acquire, lease as lessor or lessee, construct, develop, own,
330	330	operate, and maintain parking facilities or a system of parking
331	331	facilities, including lots, garages, parking terminals, or other
332	332	structures or accommodations for parking motor vehicles off the
333	333	streets and related appurtenances.
334	334	(b) The district's parking facilities serve the public
335	335	purposes of the district and are owned, used, and held for a public
336	336	purpose even if leased or operated by a private entity for a term of
337	337	years.
338	338	(c) The district's parking facilities are parts of and
339	339	necessary components of a street and are considered to be a street
340	340	or road improvement.
341	341	(d) The development and operation of the district's parking
342	342	facilities may be considered an economic development program.
343	343	Sec. 3944.118. NO EMINENT DOMAIN POWER. The district may
344	344	not exercise the power of eminent domain.
345	345	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
346	346	Sec. 3944.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
347	347	board by resolution shall establish the number of directors'
348	348	signatures and the procedure required for a disbursement or
349	349	transfer of district money.
350	350	Sec. 3944.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
351	351	The district may acquire, construct, finance, operate, maintain, or
352	352	provide any improvement or service authorized under this chapter or
353	353	Chapter 375, Local Government Code, using any money available to
354	354	the district.
355	355	Sec. 3944.153. PETITION REQUIRED FOR FINANCING SERVICES AND
356	356	IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
357	357	service or improvement project with assessments under this chapter
358	358	unless a written petition requesting that service or improvement
359	359	has been filed with the board.
360	360	(b) The petition must be signed by the owners of a majority
361	361	of the assessed value of real property in the district subject to
362	362	assessment according to the most recent certified tax appraisal
363	363	roll for the county.
364	364	Sec. 3944.154. METHOD OF NOTICE FOR HEARING. The district
365	365	may mail the notice required by Section 375.115(c), Local
366	366	Government Code, by certified or first class United States mail.
367	367	The board shall determine the method of notice.
368	368	Sec. 3944.155. ASSESSMENTS; LIENS FOR ASSESSMENTS.
369	369	(a) The board by resolution may impose and collect an assessment
370	370	for any purpose authorized by this chapter in all or any part of the
371	371	district without regard to whether that area is already subject to
372	372	or overlaps with an area of the district that is subject to a prior
373	373	assessment imposed by the board.
374	374	(b) An assessment, a reassessment, or an assessment
375	375	resulting from an addition to or correction of the assessment roll
376	376	by the district, penalties and interest on an assessment or
377	377	reassessment, an expense of collection, and reasonable attorney's
378	378	fees incurred by the district are:
379	379	(1) a first and prior lien against the property
380	380	assessed;
381	381	(2) superior to any other lien or claim other than a
382	382	lien or claim for county, school district, or municipal ad valorem
383	383	taxes; and
384	384	(3) the personal liability of and a charge against the
385	385	owners of the property even if the owners are not named in the
386	386	assessment proceedings.
387	387	(c) The lien is effective from the date of the board's
388	388	resolution imposing the assessment until the date the assessment is
389	389	paid. The board may enforce the lien in the same manner that the
390	390	board may enforce an ad valorem tax lien against real property.
391	391	(d) The board may make a correction to or deletion from the
392	392	assessment roll that does not increase the amount of assessment of
393	393	any parcel of land without providing notice and holding a hearing in
394	394	the manner required for additional assessments.
395	395	Sec. 3944.156. TAX AND ASSESSMENT ABATEMENTS. The district
396	396	may designate reinvestment zones and may grant abatements of a tax
397	397	or assessment on property in the zones.
398	398	Sec. 3944.157. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS.
399	399	The district may not impose an assessment on the property,
400	400	including the equipment, rights-of-way, facilities, or
401	401	improvements, of:
402	402	(1) an electric utility or a power generation company
403	403	as defined by Section 31.002, Utilities Code;
404	404	(2) a gas utility as defined by Section 101.003 or
405	405	121.001, Utilities Code;
406	406	(3) a telecommunications provider as defined by
407	407	Section 51.002, Utilities Code; or
408	408	(4) a person who provides to the public cable
409	409	television or advanced telecommunications services.
410	410	Sec. 3944.158. RESIDENTIAL PROPERTY. Section 375.161,
411	411	Local Government Code, does not apply to:
412	412	(1) a tax imposed by the district; or
413	413	(2) a required payment for a service provided by the
414	414	district, including water and sewer service.
415	415	Sec. 3944.159. OPERATION AND MAINTENANCE TAX. (a) If
416	416	authorized at an election held under Section 3944.163, the district
417	417	may impose an annual operation and maintenance tax on taxable
418	418	property in the district in accordance with Section 49.107, Water
419	419	Code, for any district purpose, including to:
420	420	(1) operate and maintain the district;
421	421	(2) construct or acquire improvements; or
422	422	(3) provide a service.
423	423	(b) The board shall determine the tax rate. The rate may not
424	424	exceed the rate approved at the election.
425	425	(c) Section 49.107(h), Water Code, does not apply to the
426	426	district.
427	427	Sec. 3944.160. CONTRACT TAXES. In accordance with Section
428	428	49.108, Water Code, the district may impose a tax other than an
429	429	operation and maintenance tax and use the revenue derived from the
430	430	tax to make payments under a contract after the provisions of the
431	431	contract have been approved by a majority of the district voters
432	432	voting at an election held for that purpose.
433	433	Sec. 3944.161. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
434	434	AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
435	435	determined by the board.
436	436	(b) The district may by competitive bid or negotiated sale
437	437	issue bonds, notes, or other obligations payable wholly or partly
438	438	from taxes, including ad valorem taxes, or assessments, fees,
439	439	revenue, contract payments, grants, or other district money, or any
440	440	combination of those sources of money, to pay for any authorized
441	441	district purpose.
442	442	(c) In addition to any other terms authorized by the board
443	443	by bond order or resolution, the proceeds of the district's bonds
444	444	may be used for a reserve fund, credit enhancement, or capitalized
445	445	interest for the bonds.
446	446	(d) The limitation on the outstanding principal amount of
447	447	bonds, notes, and other obligations provided by Section 49.4645,
448	448	Water Code, does not apply to the district.
449	449	Sec. 3944.162. TAXES FOR BONDS. At the time the district
450	450	issues bonds payable wholly or partly from ad valorem taxes, the
451	451	board shall provide for the annual imposition of a continuing
452	452	direct ad valorem tax, without limit as to rate or amount, while all
453	453	or part of the bonds are outstanding as required and in the manner
454	454	provided by Sections 54.601 and 54.602, Water Code.
455	455	Sec. 3944.163. ELECTIONS REGARDING TAXES AND BONDS.
456	456	(a) The district may issue, without an election, bonds, notes, and
457	457	other obligations secured by:
458	458	(1) revenue other than ad valorem taxes; or
459	459	(2) contract payments described by Section 3944.160.
460	460	(b) The district must hold an election in the manner
461	461	provided by Subchapter L, Chapter 375, Local Government Code, to
462	462	obtain voter approval before the district may impose an ad valorem
463	463	tax or sales and use tax or issue bonds payable from ad valorem
464	464	taxes.
465	465	(c) Section 375.243, Local Government Code, does not apply
466	466	to the district.
467	467	(d) All or any part of any facilities or improvements that
468	468	may be acquired by a district through the issuance of district bonds
469	469	may be included in one single proposition to be voted on at the
470	470	election or the bonds may be submitted in several propositions.
471	471	Sec. 3944.164. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
472	472	OBLIGATIONS. Except as provided by Section 375.263, Local
473	473	Government Code, a municipality is not required to pay a bond, note,
474	474	or other obligation of the district.
475	475	Sec. 3944.165. AUDIT EXEMPTION. (a) The district may
476	476	elect to complete an annual financial report in lieu of an annual
477	477	audit under Section 375.096(a)(6), Local Government Code, if:
478	478	(1) the district had no bonds or other long-term (more
479	479	than one year) liabilities outstanding during the fiscal period;
480	480	(2) the district did not have gross receipts from
481	481	operations, loans, taxes, assessments, or contributions in excess
482	482	of $250,000 during the fiscal period; and
483	483	(3) the district's cash and temporary investments were
484	484	not in excess of $250,000 during the fiscal period.
485	485	(b) Each annual financial report prepared in accordance
486	486	with this section must be open to public inspection and accompanied
487	487	by an affidavit signed by a duly authorized representative of the
488	488	district attesting to the accuracy and authenticity of the
489	489	financial report.
490	490	(c) The annual financial report and affidavit shall be
491	491	substantially similar in form to the annual financial report and
492	492	affidavit forms prescribed by the executive director of the Texas
493	493	Commission on Environmental Quality under Section 49.198, Water
494	494	Code.
495	495	SUBCHAPTER E. SALES AND USE TAX
496	496	Sec. 3944.201. APPLICABILITY OF CERTAIN TAX CODE
497	497	PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
498	498	computation, administration, enforcement, and collection of the
499	499	sales and use tax authorized by this subchapter except to the extent
500	500	Chapter 321, Tax Code, is inconsistent with this chapter.
501	501	(b) A reference in Chapter 321, Tax Code, to a municipality
502	502	or the governing body of a municipality is a reference to the
503	503	district or the board, respectively.
504	504	Sec. 3944.202. ELECTION; ADOPTION OF TAX. (a) The
505	505	district may adopt a sales and use tax if authorized by a majority
506	506	of the voters of the district voting at an election held for that
507	507	purpose.
508	508	(b) The board by order may call an election to authorize the
509	509	adoption of the sales and use tax. The election may be held on any
510	510	uniform election date and in conjunction with any other district
511	511	election.
512	512	(c) The ballot shall be printed to provide for voting for or
513	513	against the proposition: "Authorization of a sales and use tax in
514	514	the Brazoria County Management District No. 1 at a rate not to
515	515	exceed ____ percent" (insert rate of one or more increments of
516	516	one-eighth of one percent).
517	517	Sec. 3944.203. SALES AND USE TAX RATE. (a) On or after the
518	518	date the results are declared of an election held under Section
519	519	3944.202, at which the voters approved imposition of the tax
520	520	authorized by this subchapter, the board shall determine and adopt
521	521	by resolution or order the initial rate of the tax, which must be in
522	522	one or more increments of one-eighth of one percent.
523	523	(b) After the election held under Section 3944.202, the
524	524	board may increase or decrease the rate of the tax by one or more
525	525	increments of one-eighth of one percent.
526	526	(c) The initial rate of the tax or any rate resulting from
527	527	subsequent increases or decreases may not exceed the lesser of:
528	528	(1) the maximum rate authorized by the district voters
529	529	at the election held under Section 3944.202; or
530	530	(2) a rate that, when added to the rates of all sales
531	531	and use taxes imposed by other political subdivisions with
532	532	territory in the district, would result in the maximum combined
533	533	rate prescribed by Section 321.101(f), Tax Code, at any location in
534	534	the district.
535	535	Sec. 3944.204. TAX AFTER MUNICIPAL ANNEXATION. (a) This
536	536	section applies to the district after a municipality annexes part
537	537	of the territory in the district and imposes the municipality's
538	538	sales and use tax in the annexed territory.
539	539	(b) If at the time of annexation the district has
540	540	outstanding debt or other obligations payable wholly or partly from
541	541	district sales and use tax revenue, Section 321.102(g), Tax Code,
542	542	applies to the district.
543	543	(c) If at the time of annexation the district does not have
544	544	outstanding debt or other obligations payable wholly or partly from
545	545	district sales and use tax revenue, the district may:
546	546	(1) exclude the annexed territory from the district,
547	547	if the district has no outstanding debt or other obligations
548	548	payable from any source; or
549	549	(2) reduce the sales and use tax in the annexed
550	550	territory by resolution or order of the board to a rate that, when
551	551	added to the sales and use tax rate imposed by the municipality in
552	552	the annexed territory, is equal to the sales and use tax rate
553	553	imposed by the district in the district territory that was not
554	554	annexed by the municipality.
555	555	Sec. 3944.205. NOTIFICATION OF RATE CHANGE. The board
556	556	shall notify the comptroller of any changes made to the tax rate
557	557	under this subchapter in the same manner the municipal secretary
558	558	provides notice to the comptroller under Section 321.405(b), Tax
559	559	Code.
560	560	Sec. 3944.206. USE OF REVENUE. Revenue from the sales and
561	561	use tax imposed under this subchapter is for the use and benefit of
562	562	the district and may be used for any district purpose. The district
563	563	may pledge all or part of the revenue to the payment of bonds,
564	564	notes, or other obligations, and that pledge of revenue may be in
565	565	combination with other revenue, including tax revenue, available to
566	566	the district.
567	567	Sec. 3944.207. ABOLITION OF TAX. (a) Except as provided
568	568	by Subsection (b), the board may abolish the tax imposed under this
569	569	subchapter without an election.
570	570	(b) The board may not abolish the tax imposed under this
571	571	subchapter if the district has outstanding debt secured by the tax,
572	572	and repayment of the debt would be impaired by the abolition of the
573	573	tax.
574	574	(c) If the board abolishes the tax, the board shall notify
575	575	the comptroller of that action in the same manner the municipal
576	576	secretary provides notice to the comptroller under Section
577	577	321.405(b), Tax Code.
578	578	(d) If the board abolishes the tax or decreases the tax rate
579	579	to zero, a new election to authorize a sales and use tax must be held
580	580	under Section 3944.202 before the district may subsequently impose
581	581	the tax.
582	582	(e) This section does not apply to a decrease in the sales
583	583	and use tax authorized under Section 3944.204(c)(2).
584	584	SUBCHAPTER F. HOTEL OCCUPANCY TAX
585	585	Sec. 3944.251. DEFINITION. In this subchapter, "hotel" has
586	586	the meaning assigned by Section 156.001, Tax Code.
587	587	Sec. 3944.252. APPLICABILITY OF CERTAIN TAX CODE
588	588	PROVISIONS. (a) For purposes of this subchapter:
589	589	(1) a reference in Subchapter A, Chapter 352, Tax
590	590	Code, to a county is a reference to the district; and
591	591	(2) a reference in Subchapter A, Chapter 352, Tax
592	592	Code, to the commissioners court is a reference to the board.
593	593	(b) Except as inconsistent with this subchapter, Subchapter
594	594	A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
595	595	by this subchapter, including the collection of the tax, subject to
596	596	the limitations prescribed by Sections 352.002(b) and (c), Tax
597	597	Code.
598	598	Sec. 3944.253. TAX AUTHORIZED; USE OF REVENUE. The
599	599	district may impose a hotel occupancy tax for any purpose described
600	600	by Section 351.101 or 352.101, Tax Code.
601	601	Sec. 3944.254. TAX RATE. (a) The amount of the hotel
602	602	occupancy tax may not exceed the lesser of:
603	603	(1) the maximum rate prescribed by Section 352.003(a),
604	604	Tax Code; or
605	605	(2) a rate that, when added to the rates of all hotel
606	606	occupancy taxes imposed by other political subdivisions with
607	607	territory in the district and by this state, does not exceed the sum
608	608	of the rate prescribed by Section 351.0025(b), Tax Code, plus two
609	609	percent.
610	610	(b) The district tax is in addition to a tax imposed by a
611	611	municipality under Chapter 351, Tax Code, or by the county under
612	612	Chapter 352, Tax Code.
613	613	Sec. 3944.255. INFORMATION. The district may examine and
614	614	receive information related to the imposition of hotel occupancy
615	615	taxes to the same extent as if the district were a county.
616	616	Sec. 3944.256. USE OF REVENUE. The district may use revenue
617	617	from the hotel occupancy tax for any district purpose that is an
618	618	authorized use of hotel occupancy tax revenue under Chapter 351 or
619	619	352, Tax Code. The district may pledge all or part of the revenue to
620	620	the payment of bonds, notes, or other obligations and that pledge of
621	621	revenue may be in combination with other revenue available to the
622	622	district.
623	623	Sec. 3944.257. ABOLITION OF TAX. (a) Except as provided
624	624	by Subsection (b), the board may abolish the tax imposed under this
625	625	subchapter.
626	626	(b) The board may not abolish the tax imposed under this
627	627	subchapter if the district has outstanding debt secured by the tax,
628	628	and repayment of the debt would be impaired by the abolition of the
629	629	tax.
630	630	SUBCHAPTER G. DISSOLUTION BY BOARD
631	631	Sec. 3944.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING
632	632	DEBT. (a) The board may dissolve the district regardless of
633	633	whether the district has debt. Section 375.264, Local Government
634	634	Code, does not apply to the district.
635	635	(b) If the district has debt when it is dissolved, the
636	636	district shall remain in existence solely for the purpose of
637	637	discharging its debts. The dissolution is effective when all debts
638	638	have been discharged.
639	639	SECTION 2. The Brazoria County Management District No. 1
640	640	initially includes all the territory contained in the following
641	641	area:
642	642	A METES & BOUNDS description of a certain 745.8 acre tract of
643	643	land situated in the H.T.&B.R.R. Company Survey, Abstract No. 251,
644	644	the A. A. Talmage Survey, Abstract No. 554, the A. A. Talmage
645	645	Survey, Abstract No. 553 and the James L Holmes Heirs Survey,
646	646	Abstract No. 610, all in Brazoria County, Texas and being out of a
647	647	called 2856.555 acre tract of land (Tract 1) conveyed to Dee S.
648	648	Osborne by the deed recorded in Volume 1159, Page 715 of the
649	649	Brazoria County Deed Records, a called 98.2535 acre tract of land
650	650	conveyed to Southeast Properties, Ltd by the deed recorded in
651	651	Clerk's File No. 92-33050 of the Brazoria County Official Public
652	652	Records and a called 109.232 acre tract of land conveyed to
653	653	Southeast Properties, LTD recorded in Volume 1221, Page 362 of the
654	654	Brazoria County Deed Records; said 745.8 acre tract being more
655	655	particularly described as follows with all bearings being based on
656	656	the Texas Coordinate System, South Central Zone, NAD 83;
657	657	COMMENCING at a found concrete monument at the northeast
658	658	corner of said 98.2535 acres also being in the southerly
659	659	right-of-way line of FM 1462;
660	660	THENCE, South 86°56'14" West, along the northerly line of said
661	661	98.2535 and 2856.555 acre tracts, common with the southerly
662	662	right-of-way line of said FM 1462, a distance of 1005.62 feet to a
663	663	set 3/4-inch iron rod (with cap stamped "JonesCarter property
664	664	corner") for the POINT OF BEGINNING of the herein described tract;
665	665	THENCE, over and across said 98.2535 and 2856.555 acre tracts
666	666	the following seven (7) bearings and distances;
667	667	1) South 33°31'32" East, a distance of 2191.74 feet to
668	668	a point for corner;
669	669	2) South 32°16'42" East, a distance of 473.37 feet to a
670	670	point for corner;
671	671	3) South 33°50'21" East, a distance of 1651.19 feet to
672	672	a point for corner;
673	673	4) South 34°22'34" East, a distance of 700.44 feet to a
674	674	point for corner;
675	675	5) South 67°37'10" East, a distance of 885.98 feet to a
676	676	point for corner;
677	677	6) South 68°00'23" East, a distance of 1178.08 feet to
678	678	a point for corner;
679	679	7) South 67°16'53" East, a distance of 1365.55 feet to
680	680	the beginning of a non-tangent curve to the left;
681	681	THENCE, continuing over and across said 2856.555 acres and
682	682	along the arc of said non-tangent curve to the left having a radius
683	683	of 5280.00 feet, a central angle of 21°24'05", an arc length of
684	684	1972.22 feet, and a long chord bearing South 51°53'34" East, 1960.78
685	685	feet to a point at the beginning of a compound curve to the left;
686	686	THENCE, continuing over and across said 2856.555 acres and
687	687	along the arc of said compound curve to the left having a radius of
688	688	5280.00 feet, a central angle of 07°33'42", an arc length of 696.84
689	689	feet, and a long chord bearing South 48°41'21" East, 696.33 feet to a
690	690	set 3/4-inch iron rod (with cap stamped "JonesCarter property
691	691	corner") in the southeasterly line of said 2856.555 acre tract,
692	692	common with the northwesterly line of a called 110.21 acre tract of
693	693	land conveyed to Patrick D. Moller and wife, Suzanne Moller by the
694	694	deed recorded in Clerk's File No. 96-005947 of the Brazoria County
695	695	Official Public Records;
696	696	THENCE, South 59°36'38" West, along the southeasterly line of
697	697	said 2856.555 acre tract, common with the northwesterly lines of
698	698	said 110.21 acres and a called 5440.64 acre tract of land conveyed
699	699	to HRI Development Corporation by the deed recorded in Clerk's File
700	700	No. 88544-596 of the Brazoria County Official Public Records, a
701	701	distance of 2868.79 feet to a set 3/4-inch iron rod (with cap
702	702	stamped "JonesCarter property corner");
703	703	THENCE over and across said 2856.555 and 109.232 acre tracts
704	704	the following six (6) bearings and distances;
705	705	1) North 67°38'45" West, a distance of 2391.22 feet to
706	706	a point for corner;
707	707	2) North 67°31'02" West, a distance of 2641.65 feet to
708	708	a point for corner;
709	709	3) North 33°08'38" West, a distance of 825.02 feet to a
710	710	point for corner;
711	711	4) North 37°02'29" West, a distance of 125.27 feet to a
712	712	point for corner;
713	713	5) North 34°06'46" West, a distance of 525.85 feet to a
714	714	point for corner;
715	715	6) North 32°45'11" West, a distance of 1737.40 feet to
716	716	a point for corner;
717	717	THENCE, North 33°07'56" West, continuing over and across said
718	718	2856.55 and 109.232 acre tracts, a distance of 1574.72 feet to a set
719	719	3/4-inch iron rod (with cap stamped "JonesCarter property corner")
720	720	in a northerly line of said 2856.555 acre tract, common with the
721	721	southerly line of a called 80.74 acre tract of land (Tract 2)
722	722	conveyed to South Associates by the deed recorded in Volume 1420,
723	723	Page 710 of the Brazoria County Deed Records;
724	724	THENCE, North 86°55'53" East, along said common line, 256.28
725	725	feet to the southeast corner of said 80.74 acre tract also being in
726	726	the westerly line of the aforementioned 109.232 acre tract;
727	727	THENCE, North 02°27'26" West, along the westerly line of said
728	728	109.232 acre tract, common with the easterly line of said 80.74 acre
729	729	tract, a distance of 2584.43 feet to a set 3/4-inch iron rod (with
730	730	cap stamped "JonesCarter property corner") at the northwest corner
731	731	of said 109.232 acre tract also being in the southerly right-of-way
732	732	line of said FM 1462;
733	733	THENCE, North 87°01'47" East, along the northerly line of said
734	734	109.232 and 2856.555 acre tracts, common with the southerly
735	735	right-of-way line of said FM 1462, a distance of 1590.81 feet to the
736	736	POINT OF BEGINNING, CONTAINING 745.8 acres of land in Brazoria
737	737	County, Texas.
738	738	SECTION 3. (a) The legal notice of the intention to
739	739	introduce this Act, setting forth the general substance of this
740	740	Act, has been published as provided by law, and the notice and a
741	741	copy of this Act have been furnished to all persons, agencies,
742	742	officials, or entities to which they are required to be furnished
743	743	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
744	744	Government Code.
745	745	(b) The governor, one of the required recipients, has
746	746	submitted the notice and Act to the Texas Commission on
747	747	Environmental Quality.
748	748	(c) The Texas Commission on Environmental Quality has filed
749	749	its recommendations relating to this Act with the governor,
750	750	lieutenant governor, and speaker of the house of representatives
751	751	within the required time.
752	752	(d) The general law relating to consent by political
753	753	subdivisions to the creation of districts with conservation,
754	754	reclamation, and road powers and the inclusion of land in those
755	755	districts has been complied with.
756	756	(e) All requirements of the constitution and laws of this
757	757	state and the rules and procedures of the legislature with respect
758	758	to the notice, introduction, and passage of this Act have been
759	759	fulfilled and accomplished.
760	760	SECTION 4. This Act takes effect immediately if it receives
761	761	a vote of two-thirds of all the members elected to each house, as
762	762	provided by Section 39, Article III, Texas Constitution. If this
763	763	Act does not receive the vote necessary for immediate effect, this
764	764	Act takes effect September 1, 2017.
765	765	* * * * *