By: Taylor of Galveston S.B. No. 1100
(In the Senate - Filed February 27, 2017; March 7, 2017,
read first time and referred to Committee on Intergovernmental
Relations; May 2, 2017, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 2, 2017, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1100 By: Garcia
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Brazoria County Management District
No. 1; providing authority to issue bonds; providing authority to
impose assessments, fees, and taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3944 to read as follows:
CHAPTER 3944. BRAZORIA COUNTY MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3944.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "County" means Brazoria County.
(3) "Director" means a board member.
(4) "District" means the Brazoria County Management
District No. 1.
Sec. 3944.002. CREATION AND NATURE OF DISTRICT; IMMUNITY.
(a) The district is a special district created under Section 59,
Article XVI, Texas Constitution.
(b) The district is a governmental unit, as provided by
Section 375.004, Local Government Code.
(c) This chapter does not waive any governmental or
sovereign immunity from suit, liability, or judgment that would
otherwise apply to the district.
Sec. 3944.003. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The temporary directors shall hold an election to
confirm the creation of the district and to elect five permanent
directors as provided by Section 49.102, Water Code.
Sec. 3944.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 3944.003
until each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located has
consented by ordinance or resolution to the creation of the
district and to the inclusion of land in the district.
Sec. 3944.005. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district, the legislature has established
a program to accomplish the public purposes set out in Sections 52
and 52-a, Article III, Texas Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve a municipality or the county from providing
the level of services provided as of the effective date of the Act
enacting this chapter to the area in the district. The district is
created to supplement and not to supplant governmental services
provided in the district.
Sec. 3944.006. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation and
commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways, road facilities,
transit facilities, parking facilities, enhanced infrastructure,
recreational facilities, public art objects, water and wastewater
facilities, and drainage facilities, and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3944.007. DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act enacting this chapter.
(b) The boundaries and field notes of the district contained
in Section 2 of the Act enacting this chapter form a closure. A
mistake in the field notes or in copying the field notes in the
legislative process does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bonds, notes, or other
obligations for a purpose for which the district is created or to
pay the principal of and interest on the bonds, notes, or other
obligations;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3944.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code;
(3) an enterprise zone created under Chapter 2303,
Government Code; or
(4) an industrial district created under Chapter 42,
Local Government Code.
Sec. 3944.009. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3944.010. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
Sec. 3944.011. CONFLICTS OF LAW. This chapter prevails
over any provision of general law, including a provision of Chapter
375, Local Government Code, or Chapter 49, Water Code, that is in
conflict or inconsistent with this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3944.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five directors elected or appointed as
provided by this chapter and Subchapter D, Chapter 49, Water Code.
(b) Except as provided by Section 3944.053, directors serve
staggered four-year terms.
Sec. 3944.052. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code. Sections 375.069 and
375.070, Local Government Code, do not apply to the board.
Sec. 3944.053. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act creating this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district according to the most recent certified tax appraisal roll
for the county may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
temporary directors the five persons named in the petition. The
commission shall appoint as temporary directors the five persons
named in the petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 3944.003; or
(2) the fourth anniversary of the effective date of
the Act creating this chapter.
(c) If permanent directors have not been elected under
Section 3944.003 and the terms of the temporary directors have
expired, successor temporary directors shall be appointed or
reappointed as provided by Subsection (d) to serve terms that
expire on the earlier of:
(1) the date permanent directors are elected under
Section 3944.003; or
(2) the fourth anniversary of the date of the
appointment or reappointment.
(d) If Subsection (c) applies, the owner or owners of a
majority of the assessed value of the real property in the district
according to the most recent certified tax appraisal roll for the
county may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
successor temporary directors the five persons named in the
petition. The commission shall appoint as successor temporary
directors the five persons named in the petition.
Sec. 3944.054. DISQUALIFICATION OF DIRECTORS. Section
49.052, Water Code, applies to the members of the board.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3944.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3944.102. IMPROVEMENT PROJECTS AND SERVICES. (a) The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using money available to the district, or contract with a
governmental or private entity to provide, design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project or service authorized under this chapter or
under Chapter 375, Local Government Code.
(b) An improvement project described by Subsection (a) may
be located inside or outside the district.
Sec. 3944.103. RECREATIONAL FACILITIES. The district may
develop or finance recreational facilities as authorized by Chapter
375, Local Government Code, Sections 52 and 52-a, Article III,
Texas Constitution, Section 59, Article XVI, Texas Constitution,
and any other law that applies to the district.
Sec. 3944.104. AUTHORITY FOR ROAD PROJECTS. Under Section
52, Article III, Texas Constitution, the district may own, operate,
maintain, design, acquire, construct, finance, issue bonds, notes,
or other obligations for, improve, and convey to this state, a
county, or a municipality for ownership, operation, and maintenance
macadamized, graveled, or paved roads or improvements, including
storm drainage, in aid of those roads.
Sec. 3944.105. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
(a) The district may convey a road project authorized by Section
3944.104 to:
(1) a municipality or county that will operate and
maintain the road if the municipality or county has approved the
plans and specifications of the road project; or
(2) the state if the state will operate and maintain
the road and the Texas Transportation Commission has approved the
plans and specifications of the road project.
(b) Except as provided by Subsection (c), the district shall
operate and maintain a road project authorized by Section 3944.104
that the district implements and does not convey to a municipality,
a county, or this state under Subsection (a).
(c) The district may agree in writing with a municipality, a
county, or this state to assign operation and maintenance duties to
the district, the municipality, the county, or this state in a
manner other than the manner described in Subsections (a) and (b).
Sec. 3944.106. DEVELOPMENT CORPORATION POWERS. The
district, using money available to the district, may exercise the
powers given to a development corporation under Chapter 505, Local
Government Code, including the power to own, operate, acquire,
construct, lease, improve, or maintain a project under that
chapter.
Sec. 3944.107. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3944.108. AGREEMENTS; GRANTS. (a) As provided by
Chapter 375, Local Government Code, the district may make an
agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3944.109. LAW ENFORCEMENT SERVICES. Section 49.216,
Water Code, applies to the district.
Sec. 3944.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3944.111. ECONOMIC DEVELOPMENT. (a) The district
may engage in activities that accomplish the economic development
purposes of the district.
(b) The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(c) The district may create economic development programs
and exercise the economic development powers that:
(1) Chapter 380, Local Government Code, provides to a
municipality; and
(2) Subchapter A, Chapter 1509, Government Code,
provides to a municipality.
Sec. 3944.112. STRATEGIC PARTNERSHIP AGREEMENT. The
district may negotiate and enter into a written strategic
partnership agreement with a municipality under Section 43.0751,
Local Government Code.
Sec. 3944.113. REGIONAL PARTICIPATION AGREEMENT. The
district may negotiate and enter into a written regional
participation agreement with a municipality under Section 43.0754,
Local Government Code.
Sec. 3944.114. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) The district may exclude land as provided by Subchapter
J, Chapter 49, Water Code. Section 375.044(b), Local Government
Code, does not apply to the district.
(c) The district may include and exclude land as provided by
Sections 54.739-54.747, Water Code. A reference in those sections
to a "tax" means an ad valorem tax for the purposes of this
subsection.
(d) If the district adopts a sales and use tax authorized at
an election held under Section 3944.202 and subsequently includes
new territory in the district under this section, the district:
(1) is not required to hold another election to
approve the imposition of the sales and use tax in the included
territory; and
(2) shall impose the sales and use tax in the included
territory as provided by Chapter 321, Tax Code.
(e) If the district adopts a sales and use tax authorized at
an election held under Section 3944.202 and subsequently excludes
territory in the district under this section, the sales and use tax
is inapplicable to the excluded territory, as provided by Chapter
321, Tax Code, but is applicable to the territory remaining in the
district.
Sec. 3944.115. APPLICABILITY OF OTHER LAW TO CERTAIN
CONTRACTS. (a) Subchapter I, Chapter 49, Water Code, applies to a
district contract for construction work, equipment, materials, or
machinery. Notwithstanding Section 2269.003(a), Government Code,
the district may use a project delivery method described by
Subchapter I, Chapter 49, Water Code, or Subchapters A-G, I, and J,
Chapter 2269, Government Code.
(b) Notwithstanding Subsection (a), the board may adopt
rules governing the receipt of bids and the award of a district
contract and providing for the waiver of the competitive bid
process if:
(1) there is an emergency;
(2) the needed materials are available only from one
source;
(3) in a procurement requiring design by the supplier
competitive bidding would not be appropriate and competitive
negotiation, with proposals solicited from an adequate number of
qualified sources, would permit reasonable competition consistent
with the nature and requirements of the procurement; or
(4) after solicitation, it is ascertained that there
will be only one bidder.
(c) Section 375.223, Local Government Code, does not apply
to the district.
Sec. 3944.116. TERMS OF EMPLOYMENT; COMPENSATION. The
board may employ and establish the terms of employment and
compensation of an executive director or general manager and any
other district employees the board considers necessary.
Sec. 3944.117. PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b) The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d) The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 3944.118. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3944.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3944.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, maintain, or
provide any improvement or service authorized under this chapter or
Chapter 375, Local Government Code, using any money available to
the district.
Sec. 3944.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) The petition must be signed by the owners of a majority
of the assessed value of real property in the district subject to
assessment according to the most recent certified tax appraisal
roll for the county.
Sec. 3944.154. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of notice.
Sec. 3944.155. ASSESSMENTS; LIENS FOR ASSESSMENTS.
(a) The board by resolution may impose and collect an assessment
for any purpose authorized by this chapter in all or any part of the
district without regard to whether that area is already subject to
or overlaps with an area of the district that is subject to a prior
assessment imposed by the board.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district are:
(1) a first and prior lien against the property
assessed;
(2) superior to any other lien or claim other than a
lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) the personal liability of and a charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
Sec. 3944.156. TAX AND ASSESSMENT ABATEMENTS. The district
may designate reinvestment zones and may grant abatements of a tax
or assessment on property in the zones.
Sec. 3944.157. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS.
The district may not impose an assessment on the property,
including the equipment, rights-of-way, facilities, or
improvements, of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(4) a person who provides to the public cable
television or advanced telecommunications services.
Sec. 3944.158. RESIDENTIAL PROPERTY. Section 375.161,
Local Government Code, does not apply to:
(1) a tax imposed by the district; or
(2) a required payment for a service provided by the
district, including water and sewer service.
Sec. 3944.159. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 3944.163, the district
may impose an annual operation and maintenance tax on taxable
property in the district in accordance with Section 49.107, Water
Code, for any district purpose, including to:
(1) operate and maintain the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3944.160. CONTRACT TAXES. In accordance with Section
49.108, Water Code, the district may impose a tax other than an
operation and maintenance tax and use the revenue derived from the
tax to make payments under a contract after the provisions of the
contract have been approved by a majority of the district voters
voting at an election held for that purpose.
Sec. 3944.161. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
determined by the board.
(b) The district may by competitive bid or negotiated sale
issue bonds, notes, or other obligations payable wholly or partly
from taxes, including ad valorem taxes, or assessments, fees,
revenue, contract payments, grants, or other district money, or any
combination of those sources of money, to pay for any authorized
district purpose.
(c) In addition to any other terms authorized by the board
by bond order or resolution, the proceeds of the district's bonds
may be used for a reserve fund, credit enhancement, or capitalized
interest for the bonds.
(d) The limitation on the outstanding principal amount of
bonds, notes, and other obligations provided by Section 49.4645,
Water Code, does not apply to the district.
Sec. 3944.162. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct ad valorem tax, without limit as to rate or amount, while all
or part of the bonds are outstanding as required and in the manner
provided by Sections 54.601 and 54.602, Water Code.
Sec. 3944.163. ELECTIONS REGARDING TAXES AND BONDS.
(a) The district may issue, without an election, bonds, notes, and
other obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 3944.160.
(b) The district must hold an election in the manner
provided by Subchapter L, Chapter 375, Local Government Code, to
obtain voter approval before the district may impose an ad valorem
tax or sales and use tax or issue bonds payable from ad valorem
taxes.
(c) Section 375.243, Local Government Code, does not apply
to the district.
(d) All or any part of any facilities or improvements that
may be acquired by a district through the issuance of district bonds
may be included in one single proposition to be voted on at the
election or the bonds may be submitted in several propositions.
Sec. 3944.164. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, a municipality is not required to pay a bond, note,
or other obligation of the district.
Sec. 3944.165. AUDIT EXEMPTION. (a) The district may
elect to complete an annual financial report in lieu of an annual
audit under Section 375.096(a)(6), Local Government Code, if:
(1) the district had no bonds or other long-term (more
than one year) liabilities outstanding during the fiscal period;
(2) the district did not have gross receipts from
operations, loans, taxes, assessments, or contributions in excess
of $250,000 during the fiscal period; and
(3) the district's cash and temporary investments were
not in excess of $250,000 during the fiscal period.
(b) Each annual financial report prepared in accordance
with this section must be open to public inspection and accompanied
by an affidavit signed by a duly authorized representative of the
district attesting to the accuracy and authenticity of the
financial report.
(c) The annual financial report and affidavit shall be
substantially similar in form to the annual financial report and
affidavit forms prescribed by the executive director of the Texas
Commission on Environmental Quality under Section 49.198, Water
Code.
SUBCHAPTER E. SALES AND USE TAX
Sec. 3944.201. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
computation, administration, enforcement, and collection of the
sales and use tax authorized by this subchapter except to the extent
Chapter 321, Tax Code, is inconsistent with this chapter.
(b) A reference in Chapter 321, Tax Code, to a municipality
or the governing body of a municipality is a reference to the
district or the board, respectively.
Sec. 3944.202. ELECTION; ADOPTION OF TAX. (a) The
district may adopt a sales and use tax if authorized by a majority
of the voters of the district voting at an election held for that
purpose.
(b) The board by order may call an election to authorize the
adoption of the sales and use tax. The election may be held on any
uniform election date and in conjunction with any other district
election.
(c) The ballot shall be printed to provide for voting for or
against the proposition: "Authorization of a sales and use tax in
the Brazoria County Management District No. 1 at a rate not to
exceed ____ percent" (insert rate of one or more increments of
one-eighth of one percent).
Sec. 3944.203. SALES AND USE TAX RATE. (a) On or after the
date the results are declared of an election held under Section
3944.202, at which the voters approved imposition of the tax
authorized by this subchapter, the board shall determine and adopt
by resolution or order the initial rate of the tax, which must be in
one or more increments of one-eighth of one percent.
(b) After the election held under Section 3944.202, the
board may increase or decrease the rate of the tax by one or more
increments of one-eighth of one percent.
(c) The initial rate of the tax or any rate resulting from
subsequent increases or decreases may not exceed the lesser of:
(1) the maximum rate authorized by the district voters
at the election held under Section 3944.202; or
(2) a rate that, when added to the rates of all sales
and use taxes imposed by other political subdivisions with
territory in the district, would result in the maximum combined
rate prescribed by Section 321.101(f), Tax Code, at any location in
the district.
Sec. 3944.204. TAX AFTER MUNICIPAL ANNEXATION. (a) This
section applies to the district after a municipality annexes part
of the territory in the district and imposes the municipality's
sales and use tax in the annexed territory.
(b) If at the time of annexation the district has
outstanding debt or other obligations payable wholly or partly from
district sales and use tax revenue, Section 321.102(g), Tax Code,
applies to the district.
(c) If at the time of annexation the district does not have
outstanding debt or other obligations payable wholly or partly from
district sales and use tax revenue, the district may:
(1) exclude the annexed territory from the district,
if the district has no outstanding debt or other obligations
payable from any source; or
(2) reduce the sales and use tax in the annexed
territory by resolution or order of the board to a rate that, when
added to the sales and use tax rate imposed by the municipality in
the annexed territory, is equal to the sales and use tax rate
imposed by the district in the district territory that was not
annexed by the municipality.
Sec. 3944.205. NOTIFICATION OF RATE CHANGE. The board
shall notify the comptroller of any changes made to the tax rate
under this subchapter in the same manner the municipal secretary
provides notice to the comptroller under Section 321.405(b), Tax
Code.
Sec. 3944.206. USE OF REVENUE. Revenue from the sales and
use tax imposed under this subchapter is for the use and benefit of
the district and may be used for any district purpose. The district
may pledge all or part of the revenue to the payment of bonds,
notes, or other obligations, and that pledge of revenue may be in
combination with other revenue, including tax revenue, available to
the district.
Sec. 3944.207. ABOLITION OF TAX. (a) Except as provided
by Subsection (b), the board may abolish the tax imposed under this
subchapter without an election.
(b) The board may not abolish the tax imposed under this
subchapter if the district has outstanding debt secured by the tax,
and repayment of the debt would be impaired by the abolition of the
tax.
(c) If the board abolishes the tax, the board shall notify
the comptroller of that action in the same manner the municipal
secretary provides notice to the comptroller under Section
321.405(b), Tax Code.
(d) If the board abolishes the tax or decreases the tax rate
to zero, a new election to authorize a sales and use tax must be held
under Section 3944.202 before the district may subsequently impose
the tax.
(e) This section does not apply to a decrease in the sales
and use tax authorized under Section 3944.204(c)(2).
SUBCHAPTER F. HOTEL OCCUPANCY TAX
Sec. 3944.251. DEFINITION. In this subchapter, "hotel" has
the meaning assigned by Section 156.001, Tax Code.
Sec. 3944.252. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) For purposes of this subchapter:
(1) a reference in Subchapter A, Chapter 352, Tax
Code, to a county is a reference to the district; and
(2) a reference in Subchapter A, Chapter 352, Tax
Code, to the commissioners court is a reference to the board.
(b) Except as inconsistent with this subchapter, Subchapter
A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
by this subchapter, including the collection of the tax, subject to
the limitations prescribed by Sections 352.002(b) and (c), Tax
Code.
Sec. 3944.253. TAX AUTHORIZED; USE OF REVENUE. The
district may impose a hotel occupancy tax for any purpose described
by Section 351.101 or 352.101, Tax Code.
Sec. 3944.254. TAX RATE. (a) The amount of the hotel
occupancy tax may not exceed the lesser of:
(1) the maximum rate prescribed by Section 352.003(a),
Tax Code; or
(2) a rate that, when added to the rates of all hotel
occupancy taxes imposed by other political subdivisions with
territory in the district and by this state, does not exceed the sum
of the rate prescribed by Section 351.0025(b), Tax Code, plus two
percent.
(b) The district tax is in addition to a tax imposed by a
municipality under Chapter 351, Tax Code, or by the county under
Chapter 352, Tax Code.
Sec. 3944.255. INFORMATION. The district may examine and
receive information related to the imposition of hotel occupancy
taxes to the same extent as if the district were a county.
Sec. 3944.256. USE OF REVENUE. The district may use revenue
from the hotel occupancy tax for any district purpose that is an
authorized use of hotel occupancy tax revenue under Chapter 351 or
352, Tax Code. The district may pledge all or part of the revenue to
the payment of bonds, notes, or other obligations and that pledge of
revenue may be in combination with other revenue available to the
district.
Sec. 3944.257. ABOLITION OF TAX. (a) Except as provided
by Subsection (b), the board may abolish the tax imposed under this
subchapter.
(b) The board may not abolish the tax imposed under this
subchapter if the district has outstanding debt secured by the tax,
and repayment of the debt would be impaired by the abolition of the
tax.
SUBCHAPTER G. DISSOLUTION BY BOARD
Sec. 3944.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may dissolve the district regardless of
whether the district has debt. Section 375.264, Local Government
Code, does not apply to the district.
(b) If the district has debt when it is dissolved, the
district shall remain in existence solely for the purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
SECTION 2. The Brazoria County Management District No. 1
initially includes all the territory contained in the following
area:
A METES & BOUNDS description of a certain 745.8 acre tract of
land situated in the H.T.&B.R.R. Company Survey, Abstract No. 251,
the A. A. Talmage Survey, Abstract No. 554, the A. A. Talmage
Survey, Abstract No. 553 and the James L Holmes Heirs Survey,
Abstract No. 610, all in Brazoria County, Texas and being out of a
called 2856.555 acre tract of land (Tract 1) conveyed to Dee S.
Osborne by the deed recorded in Volume 1159, Page 715 of the
Brazoria County Deed Records, a called 98.2535 acre tract of land
conveyed to Southeast Properties, Ltd by the deed recorded in
Clerk's File No. 92-33050 of the Brazoria County Official Public
Records and a called 109.232 acre tract of land conveyed to
Southeast Properties, LTD recorded in Volume 1221, Page 362 of the
Brazoria County Deed Records; said 745.8 acre tract being more
particularly described as follows with all bearings being based on
the Texas Coordinate System, South Central Zone, NAD 83;
COMMENCING at a found concrete monument at the northeast
corner of said 98.2535 acres also being in the southerly
right-of-way line of FM 1462;
THENCE, South 86°56'14" West, along the northerly line of said
98.2535 and 2856.555 acre tracts, common with the southerly
right-of-way line of said FM 1462, a distance of 1005.62 feet to a
set 3/4-inch iron rod (with cap stamped "JonesCarter property
corner") for the POINT OF BEGINNING of the herein described tract;
THENCE, over and across said 98.2535 and 2856.555 acre tracts
the following seven (7) bearings and distances;
1) South 33°31'32" East, a distance of 2191.74 feet to
a point for corner;
2) South 32°16'42" East, a distance of 473.37 feet to a
point for corner;
3) South 33°50'21" East, a distance of 1651.19 feet to
a point for corner;
4) South 34°22'34" East, a distance of 700.44 feet to a
point for corner;
5) South 67°37'10" East, a distance of 885.98 feet to a
point for corner;
6) South 68°00'23" East, a distance of 1178.08 feet to
a point for corner;
7) South 67°16'53" East, a distance of 1365.55 feet to
the beginning of a non-tangent curve to the left;
THENCE, continuing over and across said 2856.555 acres and
along the arc of said non-tangent curve to the left having a radius
of 5280.00 feet, a central angle of 21°24'05", an arc length of
1972.22 feet, and a long chord bearing South 51°53'34" East, 1960.78
feet to a point at the beginning of a compound curve to the left;
THENCE, continuing over and across said 2856.555 acres and
along the arc of said compound curve to the left having a radius of
5280.00 feet, a central angle of 07°33'42", an arc length of 696.84
feet, and a long chord bearing South 48°41'21" East, 696.33 feet to a
set 3/4-inch iron rod (with cap stamped "JonesCarter property
corner") in the southeasterly line of said 2856.555 acre tract,
common with the northwesterly line of a called 110.21 acre tract of
land conveyed to Patrick D. Moller and wife, Suzanne Moller by the
deed recorded in Clerk's File No. 96-005947 of the Brazoria County
Official Public Records;
THENCE, South 59°36'38" West, along the southeasterly line of
said 2856.555 acre tract, common with the northwesterly lines of
said 110.21 acres and a called 5440.64 acre tract of land conveyed
to HRI Development Corporation by the deed recorded in Clerk's File
No. 88544-596 of the Brazoria County Official Public Records, a
distance of 2868.79 feet to a set 3/4-inch iron rod (with cap
stamped "JonesCarter property corner");
THENCE over and across said 2856.555 and 109.232 acre tracts
the following six (6) bearings and distances;
1) North 67°38'45" West, a distance of 2391.22 feet to
a point for corner;
2) North 67°31'02" West, a distance of 2641.65 feet to
a point for corner;
3) North 33°08'38" West, a distance of 825.02 feet to a
point for corner;
4) North 37°02'29" West, a distance of 125.27 feet to a
point for corner;
5) North 34°06'46" West, a distance of 525.85 feet to a
point for corner;
6) North 32°45'11" West, a distance of 1737.40 feet to
a point for corner;
THENCE, North 33°07'56" West, continuing over and across said
2856.55 and 109.232 acre tracts, a distance of 1574.72 feet to a set
3/4-inch iron rod (with cap stamped "JonesCarter property corner")
in a northerly line of said 2856.555 acre tract, common with the
southerly line of a called 80.74 acre tract of land (Tract 2)
conveyed to South Associates by the deed recorded in Volume 1420,
Page 710 of the Brazoria County Deed Records;
THENCE, North 86°55'53" East, along said common line, 256.28
feet to the southeast corner of said 80.74 acre tract also being in
the westerly line of the aforementioned 109.232 acre tract;
THENCE, North 02°27'26" West, along the westerly line of said
109.232 acre tract, common with the easterly line of said 80.74 acre
tract, a distance of 2584.43 feet to a set 3/4-inch iron rod (with
cap stamped "JonesCarter property corner") at the northwest corner
of said 109.232 acre tract also being in the southerly right-of-way
line of said FM 1462;
THENCE, North 87°01'47" East, along the northerly line of said
109.232 and 2856.555 acre tracts, common with the southerly
right-of-way line of said FM 1462, a distance of 1590.81 feet to the
POINT OF BEGINNING, CONTAINING 745.8 acres of land in Brazoria
County, Texas.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
(e) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act have been
fulfilled and accomplished.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.
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