Texas 2019 - 86th Regular

Texas House Bill HB4644 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4644
	1	+	By: Bell of Montgomery (Senate Sponsor - Creighton) H.B. No. 4644
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 6, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 16, 2019, reported adversely,
	5	+	with favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 16, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 4644 By: Lucio
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the creation of the Wood Trace Management District of
6	14		Montgomery County, Texas; providing authority to issue bonds;
7	15		providing authority to impose assessments, fees, and taxes.
8	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	17		SECTION 1. Subtitle C, Title 4, Special District Local Laws
10	18		Code, is amended by adding Chapter 3967 to read as follows:
11	19		CHAPTER 3967. WOOD TRACE MANAGEMENT DISTRICT OF MONTGOMERY COUNTY,
12	20		TEXAS
13	21		SUBCHAPTER A. GENERAL PROVISIONS
14	22		Sec. 3967.0101. DEFINITIONS. In this chapter:
15	23		(1) "Board" means the district's board of directors.
16	24		(2) "County" means Montgomery County.
17	25		(3) "Director" means a board member.
18	26		(4) "District" means the Wood Trace Management
19	27		District of Montgomery County, Texas.
20	28		Sec. 3967.0102. CREATION AND NATURE OF DISTRICT; IMMUNITY.
21	29		(a) The district is a special district created under Section 59,
22	30		Article XVI, Texas Constitution.
23	31		(b) The district is a governmental unit, as provided by
24	32		Section 375.004, Local Government Code.
25	33		(c) This chapter does not waive any governmental or
26	34		sovereign immunity from suit, liability, or judgment that would
27	35		otherwise apply to the district.
28	36		Sec. 3967.0103. PURPOSE; DECLARATION OF INTENT. (a) The
29	37		creation of the district is essential to accomplish the purposes of
30	38		Sections 52 and 52-a, Article III, and Section 59, Article XVI,
31	39		Texas Constitution, and other public purposes stated in this
32	40		chapter. By creating the district, the legislature has established
33	41		a program to accomplish the public purposes set out in Sections 52
34	42		and 52-a, Article III, Texas Constitution.
35	43		(b) The creation of the district is necessary to promote,
36	44		develop, encourage, and maintain employment, commerce,
37	45		transportation, housing, tourism, recreation, the arts,
38	46		entertainment, economic development, safety, and the public
39	47		welfare in the district.
40	48		(c) This chapter and the creation of the district may not be
41	49		interpreted to relieve a municipality or the county from providing
42	50		the level of services provided as of the effective date of the Act
43	51		enacting this chapter to the area in the district. The district is
44	52		created to supplement and not to supplant governmental services
45	53		provided in the district.
46	54		Sec. 3967.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
47	55		(a) The district is created to serve a public use and benefit.
48	56		(b) All land and other property included in the district
49	57		will benefit from the improvements and services to be provided by
50	58		the district under powers conferred by Sections 52 and 52-a,
51	59		Article III, and Section 59, Article XVI, Texas Constitution, and
52	60		other powers granted under this chapter.
53	61		(c) The creation of the district is in the public interest
54	62		and is essential to further the public purposes of:
55	63		(1) developing and diversifying the economy of the
56	64		state;
57	65		(2) eliminating unemployment and underemployment; and
58	66		(3) developing or expanding transportation and
59	67		commerce.
60	68		(d) The district will:
61	69		(1) promote the health, safety, and general welfare of
62	70		residents, employers, potential employees, employees, visitors,
63	71		and consumers in the district, and of the public;
64	72		(2) provide needed funding for the district to
65	73		preserve, maintain, and enhance the economic health and vitality of
66	74		the district territory as a community and business center;
67	75		(3) promote the health, safety, welfare, and enjoyment
68	76		of the public by providing pedestrian ways, transit facilities,
69	77		parking facilities, and public art objects, and by landscaping and
70	78		developing certain areas in the district, which are necessary for
71	79		the restoration, preservation, and enhancement of scenic beauty;
72	80		and
73	81		(4) provide for water, wastewater, drainage, road, and
74	82		recreational facilities for the district.
75	83		(e) Pedestrian ways along or across a street, whether at
76	84		grade or above or below the surface, and street lighting, street
77	85		landscaping, parking, and street art objects are parts of and
78	86		necessary components of a street and are considered to be a street
79	87		or road improvement.
80	88		(f) The district will not act as the agent or
81	89		instrumentality of any private interest even though the district
82	90		will benefit many private interests as well as the public.
83	91		Sec. 3967.0105. DISTRICT TERRITORY. (a) The district is
84	92		initially composed of the territory described by Section 2 of the
85	93		Act enacting this chapter.
86	94		(b) The boundaries and field notes of the district contained
87	95		in Section 2 of the Act enacting this chapter form a closure. A
88	96		mistake in the field notes or in copying the field notes in the
89	97		legislative process does not affect the district's:
90	98		(1) organization, existence, or validity;
91	99		(2) right to issue any type of bonds for a purpose for
92	100		which the district is created or to pay the principal of and
93	101		interest on the bonds;
94	102		(3) right to impose or collect an assessment or tax; or
95	103		(4) legality or operation.
96	104		Sec. 3967.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
97	105		All or any part of the area of the district is eligible to be
98	106		included in:
99	107		(1) a tax increment reinvestment zone created under
100	108		Chapter 311, Tax Code;
101	109		(2) a tax abatement reinvestment zone created under
102	110		Chapter 312, Tax Code;
103	111		(3) an enterprise zone created under Chapter 2303,
104	112		Government Code; or
105	113		(4) an industrial district created under Chapter 42,
106	114		Local Government Code.
107	115		Sec. 3967.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
108	116		DISTRICTS LAW. Except as otherwise provided by this chapter,
109	117		Chapter 375, Local Government Code, applies to the district.
110	118		Sec. 3967.0108. LIBERAL CONSTRUCTION OF CHAPTER. This
111	119		chapter shall be liberally construed in conformity with the
112	120		findings and purposes stated in this chapter.
113	121		Sec. 3967.0109. CONFLICTS OF LAW. This chapter prevails
114	122		over any provision of general law, including a provision of Chapter
115	123		375, Local Government Code, or Chapter 49, Water Code, that is in
116	124		conflict or inconsistent with this chapter.
117	125		SUBCHAPTER B. BOARD OF DIRECTORS
118	126		Sec. 3967.0201. GOVERNING BODY; TERMS. (a) The district is
119	127		governed by a board of five directors elected or appointed as
120	128		provided by this chapter and Subchapter D, Chapter 49, Water Code.
121	129		(b) Except as provided by Section 3967.0203, directors
122	130		serve staggered four-year terms.
123	131		Sec. 3967.0202. COMPENSATION. A director is entitled to
124	132		receive fees of office and reimbursement for actual expenses as
125	133		provided by Section 49.060, Water Code. Sections 375.069 and
126	134		375.070, Local Government Code, do not apply to the board.
127	135		Sec. 3967.0203. TEMPORARY DIRECTORS. (a) On or after the
128	136		effective date of the Act creating this chapter, the owner or owners
129	137		of a majority of the assessed value of the real property in the
130	138		district according to the most recent certified tax appraisal roll
131	139		for the county may submit a petition to the Texas Commission on
132	140		Environmental Quality requesting that the commission appoint as
133	141		temporary directors the five persons named in the petition. The
134	142		commission shall appoint as temporary directors the five persons
135	143		named in the petition.
136	144		(b) The temporary or successor temporary directors shall
137	145		hold an election to elect five permanent directors as provided by
138	146		Section 49.102, Water Code.
139	147		(c) Temporary directors serve until the earlier of:
140	148		(1) the date permanent directors are elected under
141	149		Subsection (b); or
142	150		(2) the fourth anniversary of the effective date of
143	151		the Act creating this chapter.
144	152		(d) If permanent directors have not been elected under
145	153		Subsection (b) and the terms of the temporary directors have
146	154		expired, successor temporary directors shall be appointed or
147	155		reappointed as provided by Subsection (e) to serve terms that
148	156		expire on the earlier of:
149	157		(1) the date permanent directors are elected under
150	158		Subsection (b); or
151	159		(2) the fourth anniversary of the date of the
152	160		appointment or reappointment.
153	161		(e) If Subsection (d) applies, the owner or owners of a
154	162		majority of the assessed value of the real property in the district
155	163		according to the most recent certified tax appraisal roll for the
156	164		county may submit a petition to the Texas Commission on
157	165		Environmental Quality requesting that the commission appoint as
158	166		successor temporary directors the five persons named in the
159	167		petition. The commission shall appoint as successor temporary
160	168		directors the five persons named in the petition.
161	169		Sec. 3967.0204. DISQUALIFICATION OF DIRECTORS. Section
162	170		49.052, Water Code, applies to the members of the board.
163	171		SUBCHAPTER C. POWERS AND DUTIES
164	172		Sec. 3967.0301. GENERAL POWERS AND DUTIES. The district
165	173		has the powers and duties necessary to accomplish the purposes for
166	174		which the district is created.
167	175		Sec. 3967.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
168	176		The district may provide, design, construct, acquire, improve,
169	177		relocate, operate, maintain, or finance an improvement project or
170	178		service using money available to the district for that purpose, or
171	179		contract with a governmental or private entity to provide, design,
172	180		construct, acquire, improve, relocate, operate, maintain, or
173	181		finance an improvement project or service authorized under this
174	182		chapter or under Chapter 375, Local Government Code.
175	183		(b) The implementation of a district project or service is a
176	184		governmental function or service for the purposes of Chapter 791,
177	185		Government Code.
178	186		Sec. 3967.0303. RECREATIONAL FACILITIES. The district may
179	187		develop or finance recreational facilities as authorized by Chapter
180	188		375, Local Government Code, Sections 52 and 52-a, Article III,
181	189		Texas Constitution, Section 59, Article XVI, Texas Constitution,
182	190		and any other law that applies to the district.
183	191		Sec. 3967.0304. AUTHORITY FOR ROAD PROJECTS. Under Section
184	192		52, Article III, Texas Constitution, the district may own, operate,
185	193		maintain, design, acquire, construct, finance, issue bonds, notes,
186	194		or other obligations for, improve, and convey to this state, a
187	195		county, or a municipality for ownership, operation, and maintenance
188	196		macadamized, graveled, or paved roads or improvements, including
189	197		storm drainage, in aid of those roads.
190	198		Sec. 3967.0305. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
191	199		(a) The district may convey a road project authorized by Section
192	200		3967.0304 to:
193	201		(1) a municipality or county that will operate and
194	202		maintain the road if the municipality or county has approved the
195	203		plans and specifications of the road project; or
196	204		(2) the state if the state will operate and maintain
197	205		the road and the Texas Transportation Commission has approved the
198	206		plans and specifications of the road project.
199	207		(b) Except as provided by Subsection (c), the district shall
200	208		operate and maintain a road project authorized by Section 3967.0304
201	209		that the district implements and does not convey to a municipality,
202	210		a county, or this state under Subsection (a).
203	211		(c) The district may agree in writing with a municipality, a
204	212		county, or this state to assign operation and maintenance duties to
205	213		the district, the municipality, the county, or this state in a
206	214		manner other than the manner described in Subsections (a) and (b).
207	215		Sec. 3967.0306. NONPROFIT CORPORATION. (a) The board by
208	216		resolution may authorize the creation of a nonprofit corporation to
209	217		assist and act for the district in implementing a project or
210	218		providing a service authorized by this chapter.
211	219		(b) The nonprofit corporation:
212	220		(1) has each power of and is considered to be a local
213	221		government corporation created under Subchapter D, Chapter 431,
214	222		Transportation Code; and
215	223		(2) may implement any project and provide any service
216	224		authorized by this chapter.
217	225		(c) The board shall appoint the board of directors of the
218	226		nonprofit corporation. The board of directors of the nonprofit
219	227		corporation shall serve in the same manner as the board of directors
220	228		of a local government corporation created under Subchapter D,
221	229		Chapter 431, Transportation Code, except that a board member is not
222	230		required to reside in the district.
223	231		Sec. 3967.0307. LAW ENFORCEMENT SERVICES. Section 49.216,
224	232		Water Code, applies to the district.
225	233		Sec. 3967.0308. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
226	234		The district may join and pay dues to a charitable or nonprofit
227	235		organization that performs a service or provides an activity
228	236		consistent with the furtherance of a district purpose.
229	237		Sec. 3967.0309. ECONOMIC DEVELOPMENT. (a) The district
230	238		may engage in activities that accomplish the economic development
231	239		purposes of the district.
232	240		(b) The district may establish and provide for the
233	241		administration of one or more programs to promote state or local
234	242		economic development and to stimulate business and commercial
235	243		activity in the district, including programs to:
236	244		(1) make loans and grants of public money; and
237	245		(2) provide district personnel and services.
238	246		(c) The district may create economic development programs
239	247		and exercise the economic development powers that:
240	248		(1) Chapter 380, Local Government Code, provides to a
241	249		municipality; and
242	250		(2) Subchapter A, Chapter 1509, Government Code,
243	251		provides to a municipality.
244	252		Sec. 3967.0310. STRATEGIC PARTNERSHIP AGREEMENT. The
245	253		district may negotiate and enter into a written strategic
246	254		partnership agreement with a municipality under Section 43.0751,
247	255		Local Government Code.
248	256		Sec. 3967.0311. REGIONAL PARTICIPATION AGREEMENT. The
249	257		district may negotiate and enter into a written regional
250	258		participation agreement with a municipality under Section 43.0754,
251	259		Local Government Code.
252	260		Sec. 3967.0312. PARKING FACILITIES. (a) The district may
253	261		acquire, lease as lessor or lessee, construct, develop, own,
254	262		operate, and maintain parking facilities or a system of parking
255	263		facilities, including lots, garages, parking terminals, or other
256	264		structures or accommodations for parking motor vehicles off the
257	265		streets and related appurtenances.
258	266		(b) The district's parking facilities serve the public
259	267		purposes of the district and are owned, used, and held for a public
260	268		purpose even if leased or operated by a private entity for a term of
261	269		years.
262	270		(c) The district's parking facilities are parts of and
263	271		necessary components of a street and are considered to be a street
264	272		or road improvement.
265	273		(d) The development and operation of the district's parking
266	274		facilities may be considered an economic development program.
267	275		Sec. 3967.0313. ADDING OR EXCLUDING LAND. (a) The district
268	276		may add land in the manner provided by Subchapter J, Chapter 49,
269	277		Water Code.
270	278		(b) The district may exclude land as provided by Subchapter
271	279		J, Chapter 49, Water Code. Section 375.044(b), Local Government
272	280		Code, does not apply to the district.
273	281		(c) The district may include and exclude land as provided by
274	282		Sections 54.739-54.747, Water Code. A reference in those sections
275	283		to a "tax" means an ad valorem tax for the purposes of this
276	284		subsection.
277	285		(d) If the district adopts a sales and use tax authorized at
278	286		an election held under Section 3967.0602 and subsequently includes
279	287		new territory in the district under this section, the district:
280	288		(1) is not required to hold another election to
281	289		approve the imposition of the sales and use tax in the included
282	290		territory; and
283	291		(2) shall impose the sales and use tax in the included
284	292		territory as provided by Chapter 321, Tax Code.
285	293		(e) If the district adopts a sales and use tax authorized at
286	294		an election held under Section 3967.0602 and subsequently excludes
287	295		territory in the district under this section, the sales and use tax
288	296		is inapplicable to the excluded territory, as provided by Chapter
289	297		321, Tax Code, but is applicable to the territory remaining in the
290	298		district.
291	299		Sec. 3967.0314. DISBURSEMENTS AND TRANSFERS OF MONEY. The
292	300		board by resolution shall establish the number of directors'
293	301		signatures and the procedure required for a disbursement or
294	302		transfer of district money.
295	303		Sec. 3967.0315. AUDIT EXEMPTION. (a) The district may
296	304		elect to complete an annual financial report in lieu of an annual
297	305		audit under Section 375.096(a)(6), Local Government Code, if:
298	306		(1) the district had no bonds or other long-term (more
299	307		than one year) liabilities outstanding during the fiscal period;
300	308		(2) the district did not have gross receipts from
301	309		operations, loans, taxes, assessments, or contributions in excess
302	310		of $250,000 during the fiscal period; and
303	311		(3) the district's cash and temporary investments were
304	312		not in excess of $250,000 during the fiscal period.
305	313		(b) Each annual financial report prepared in accordance
306	314		with this section must be open to public inspection and accompanied
307	315		by an affidavit signed by a duly authorized representative of the
308	316		district attesting to the accuracy and authenticity of the
309	317		financial report.
310	318		(c) The annual financial report and affidavit shall be
311	319		substantially similar in form to the annual financial report and
312	320		affidavit forms prescribed by the executive director of the Texas
313	321		Commission on Environmental Quality under Section 49.198, Water
314	322		Code.
315	323		Sec. 3967.0316. NO EMINENT DOMAIN POWER. The district may
316	324		not exercise the power of eminent domain.
317	325		SUBCHAPTER D. ASSESSMENTS
318	326		Sec. 3967.0401. PETITION REQUIRED FOR FINANCING SERVICES
319	327		AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
320	328		service or improvement project with assessments under this chapter
321	329		unless a written petition requesting that service or improvement
322	330		has been filed with the board.
323	331		(b) The petition must be signed by the owners of a majority
324	332		of the assessed value of real property in the district subject to
325	333		assessment according to the most recent certified tax appraisal
326	334		roll for the county.
327	335		Sec. 3967.0402. METHOD OF NOTICE FOR HEARING. The district
328	336		may mail the notice required by Section 375.115(c), Local
329	337		Government Code, by certified or first class United States mail.
330	338		The board shall determine the method of notice.
331	339		Sec. 3967.0403. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
332	340		The board by resolution may impose and collect an assessment for any
333	341		purpose authorized by this chapter in all or any part of the
334	342		district.
335	343		(b) An assessment, a reassessment, or an assessment
336	344		resulting from an addition to or correction of the assessment roll
337	345		by the district, penalties and interest on an assessment or
338	346		reassessment, an expense of collection, and reasonable attorney's
339	347		fees incurred by the district are:
340	348		(1) a first and prior lien against the property
341	349		assessed;
342	350		(2) superior to any other lien or claim other than a
343	351		lien or claim for county, school district, or municipal ad valorem
344	352		taxes; and
345	353		(3) the personal liability of and a charge against the
346	354		owners of the property even if the owners are not named in the
347	355		assessment proceedings.
348	356		(c) The lien is effective from the date of the board's
349	357		resolution imposing the assessment until the date the assessment is
350	358		paid. The board may enforce the lien in the same manner that the
351	359		board may enforce an ad valorem tax lien against real property.
352	360		(d) The board may make a correction to or deletion from the
353	361		assessment roll that does not increase the amount of assessment of
354	362		any parcel of land without providing notice and holding a hearing in
355	363		the manner required for additional assessments.
356	364		SUBCHAPTER E. TAXES AND BONDS
357	365		Sec. 3967.0501. TAX ELECTION REQUIRED. The district must
358	366		hold an election in the manner provided by Chapter 49, Water Code,
359	367		or, if applicable, Chapter 375, Local Government Code, to obtain
360	368		voter approval before the district may impose an ad valorem tax.
361	369		Sec. 3967.0502. OPERATION AND MAINTENANCE TAX. (a) If
362	370		authorized by a majority of the district voters voting at an
363	371		election under Section 3967.0501, the district may impose an
364	372		operation and maintenance tax on taxable property in the district
365	373		in the manner provided by Section 49.107, Water Code, for any
366	374		district purpose, including to:
367	375		(1) maintain and operate the district;
368	376		(2) construct or acquire improvements; or
369	377		(3) provide a service.
370	378		(b) The board shall determine the operation and maintenance
371	379		tax rate. The rate may not exceed the rate approved at the
372	380		election.
373	381		(c) Section 49.107(h), Water Code, does not apply to the
374	382		district.
375	383		Sec. 3967.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE
376	384		BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
377	385		terms determined by the board.
378	386		(b) The district may, by competitive bid or negotiated sale,
379	387		issue bonds, notes, or other obligations payable wholly or partly
380	388		from ad valorem taxes, assessments, impact fees, revenue, contract
381	389		payments, grants, or other district money, or any combination of
382	390		those sources of money, to pay for any authorized district purpose.
383	391		(c) The limitation on the outstanding principal amount of
384	392		bonds, notes, or other obligations provided by Section 49.4645,
385	393		Water Code, does not apply to the district.
386	394		Sec. 3967.0504. BONDS SECURED BY REVENUE OR CONTRACT
387	395		PAYMENTS. The district may issue, without an election, bonds
388	396		secured by:
389	397		(1) revenue other than ad valorem taxes, including
390	398		contract revenues; or
391	399		(2) contract payments, provided that the requirements
392	400		of Section 49.108, Water Code, have been met.
393	401		Sec. 3967.0505. BONDS SECURED BY AD VALOREM TAXES;
394	402		ELECTIONS. (a) If authorized at an election under Section
395	403		3967.0501, the district may issue bonds payable from ad valorem
396	404		taxes.
397	405		(b) Section 375.243, Local Government Code, does not apply
398	406		to the district.
399	407		(c) At the time the district issues bonds payable wholly or
400	408		partly from ad valorem taxes, the board shall provide for the annual
401	409		imposition of a continuing direct annual ad valorem tax, without
402	410		limit as to rate or amount, for each year that all or part of the
403	411		bonds are outstanding as required and in the manner provided by
404	412		Sections 54.601 and 54.602, Water Code.
405	413		(d) All or any part of any facilities or improvements that
406	414		may be acquired by a district by the issuance of its bonds may be
407	415		submitted as a single proposition or as several propositions to be
408	416		voted on at the election.
409	417		Sec. 3967.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The
410	418		board may not issue bonds until each municipality in whose
411	419		corporate limits or extraterritorial jurisdiction the district is
412	420		located has consented by ordinance or resolution to the creation of
413	421		the district and to the inclusion of land in the district.
414	422		(b) This section applies only to the district's first
415	423		issuance of bonds payable from ad valorem taxes.
416	424		SUBCHAPTER F. SALES AND USE TAX
417	425		Sec. 3967.0601. APPLICABILITY OF CERTAIN TAX CODE
418	426		PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
419	427		computation, administration, enforcement, and collection of the
420	428		sales and use tax authorized by this subchapter except to the extent
421	429		Chapter 321, Tax Code, is inconsistent with this chapter.
422	430		(b) A reference in Chapter 321, Tax Code, to a municipality
423	431		or the governing body of a municipality is a reference to the
424	432		district or the board, respectively.
425	433		Sec. 3967.0602. ELECTION; ADOPTION OF TAX. (a) The
426	434		district may adopt a sales and use tax if authorized by a majority
427	435		of the voters of the district voting at an election held for that
428	436		purpose.
429	437		(b) The board by order may call an election to authorize the
430	438		adoption of the sales and use tax. The election may be held on any
431	439		uniform election date and in conjunction with any other district
432	440		election.
433	441		(c) The ballot shall be printed to provide for voting for or
434	442		against the proposition: "Authorization of a sales and use tax in
435	443		the Wood Trace Management District of Montgomery County, Texas, at
436	444		a rate not to exceed ____ percent" (insert rate of one or more
437	445		increments of one-eighth of one percent).
438	446		Sec. 3967.0603. SALES AND USE TAX RATE. (a) On or after the
439	447		date the results are declared of an election held under Section
440	448		3967.0602, at which the voters approved imposition of the tax
441	449		authorized by this subchapter, the board shall determine and adopt
442	450		by resolution or order the initial rate of the tax, which must be in
443	451		one or more increments of one-eighth of one percent.
444	452		(b) After the election held under Section 3967.0602, the
445	453		board may increase or decrease the rate of the tax by one or more
446	454		increments of one-eighth of one percent.
447	455		(c) The initial rate of the tax or any rate resulting from
448	456		subsequent increases or decreases may not exceed the lesser of:
449	457		(1) the maximum rate authorized by the district voters
450	458		at the election held under Section 3967.0602; or
451	459		(2) a rate that, when added to the rates of all sales
452	460		and use taxes imposed by other political subdivisions with
453	461		territory in the district, would result in the maximum combined
454	462		rate prescribed by Section 321.101(f), Tax Code, at any location in
455	463		the district.
456	464		Sec. 3967.0604. TAX AFTER MUNICIPAL ANNEXATION. (a) This
457	465		section applies to the district after a municipality annexes part
458	466		of the territory in the district and imposes the municipality's
459	467		sales and use tax in the annexed territory.
460	468		(b) If at the time of annexation the district has
461	469		outstanding debt or other obligations payable wholly or partly from
462	470		district sales and use tax revenue, Section 321.102(g), Tax Code,
463	471		applies to the district.
464	472		(c) If at the time of annexation the district does not have
465	473		outstanding debt or other obligations payable wholly or partly from
466	474		district sales and use tax revenue, the district may:
467	475		(1) exclude the annexed territory from the district,
468	476		if the district has no outstanding debt or other obligations
469	477		payable from any source; or
470	478		(2) reduce the sales and use tax in the annexed
471	479		territory by resolution or order of the board to a rate that, when
472	480		added to the sales and use tax rate imposed by the municipality in
473	481		the annexed territory, is equal to the sales and use tax rate
474	482		imposed by the district in the district territory that was not
475	483		annexed by the municipality.
476	484		Sec. 3967.0605. NOTIFICATION OF RATE CHANGE. The board
477	485		shall notify the comptroller of any changes made to the tax rate
478	486		under this subchapter in the same manner the municipal secretary
479	487		provides notice to the comptroller under Section 321.405(b), Tax
480	488		Code.
481	489		Sec. 3967.0606. USE OF REVENUE. Revenue from the sales and
482	490		use tax imposed under this subchapter is for the use and benefit of
483	491		the district and may be used for any district purpose. The district
484	492		may pledge all or part of the revenue to the payment of bonds,
485	493		notes, or other obligations, and that pledge of revenue may be in
486	494		combination with other revenue, including tax revenue, available to
487	495		the district.
488	496		Sec. 3967.0607. ABOLITION OF TAX. (a) Except as provided
489	497		by Subsection (b), the board may abolish the tax imposed under this
490	498		subchapter without an election.
491	499		(b) The board may not abolish the tax imposed under this
492	500		subchapter if the district has outstanding debt secured by the tax,
493	501		and repayment of the debt would be impaired by the abolition of the
494	502		tax.
495	503		(c) If the board abolishes the tax, the board shall notify
496	504		the comptroller of that action in the same manner the municipal
497	505		secretary provides notice to the comptroller under Section
498	506		321.405(b), Tax Code.
499	507		(d) If the board abolishes the tax or decreases the tax rate
500	508		to zero, a new election to authorize a sales and use tax must be held
501	509		under Section 3967.0602 before the district may subsequently impose
502	510		the tax.
503	511		(e) This section does not apply to a decrease in the sales
504	512		and use tax authorized under Section 3967.0604(c)(2).
505	513		SUBCHAPTER G. HOTEL OCCUPANCY TAX
506	514		Sec. 3967.0701. DEFINITION. In this subchapter, "hotel"
507	515		has the meaning assigned by Section 156.001, Tax Code.
508	516		Sec. 3967.0702. APPLICABILITY OF CERTAIN TAX CODE
509	517		PROVISIONS. (a) For purposes of this subchapter:
510	518		(1) a reference in Subchapter A, Chapter 352, Tax
511	519		Code, to a county is a reference to the district; and
512	520		(2) a reference in Subchapter A, Chapter 352, Tax
513	521		Code, to the commissioners court is a reference to the board.
514	522		(b) Except as inconsistent with this subchapter, Subchapter
515	523		A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
516	524		by this subchapter, including the collection of the tax, subject to
517	525		the limitations prescribed by Sections 352.002(b) and (c), Tax
518	526		Code.
519	527		Sec. 3967.0703. TAX AUTHORIZED; USE OF REVENUE. The
520	528		district may impose a hotel occupancy tax for any purpose described
521	529		by Section 351.101 or 352.101, Tax Code.
522	530		Sec. 3967.0704. TAX RATE. (a) The amount of the hotel
523	531		occupancy tax may not exceed the lesser of:
524	532		(1) the maximum rate prescribed by Section 352.003(a),
525	533		Tax Code; or
526	534		(2) a rate that, when added to the rates of all hotel
527	535		occupancy taxes imposed by other political subdivisions with
528	536		territory in the district and by this state, does not exceed the sum
529	537		of the rate prescribed by Section 351.0025(b), Tax Code, plus two
530	538		percent.
531	539		(b) The district tax is in addition to a tax imposed by a
532	540		municipality under Chapter 351, Tax Code, or by the county under
533	541		Chapter 352, Tax Code.
534	542		Sec. 3967.0705. INFORMATION. The district may examine and
535	543		receive information related to the imposition of hotel occupancy
536	544		taxes to the same extent as if the district were a county.
537	545		Sec. 3967.0706. USE OF REVENUE. The district may use
538	546		revenue from the hotel occupancy tax for any district purpose that
539	547		is an authorized use of hotel occupancy tax revenue under Chapter
540	548		351 or 352, Tax Code. The district may pledge all or part of the
541	549		revenue to the payment of bonds, notes, or other obligations and
542	550		that pledge of revenue may be in combination with other revenue
543	551		available to the district.
544	552		Sec. 3967.0707. ABOLITION OF TAX. (a) Except as provided
545	553		by Subsection (b), the board may abolish the tax imposed under this
546	554		subchapter.
547	555		(b) The board may not abolish the tax imposed under this
548	556		subchapter if the district has outstanding debt secured by the tax,
549	557		and repayment of the debt would be impaired by the abolition of the
550	558		tax.
551	559		SUBCHAPTER I. DISSOLUTION
552	560		Sec. 3967.0901. DISSOLUTION. (a) The board shall dissolve
553	561		the district on written petition filed with the board by the owners
554	562		of:
555	563		(1) 66 percent or more of the assessed value of the
556	564		property subject to assessment by the district based on the most
557	565		recent certified county property tax rolls; or
558	566		(2) 66 percent or more of the surface area of the
559	567		district, excluding roads, streets, highways, utility
560	568		rights-of-way, other public areas, and other property exempt from
561	569		assessment by the district according to the most recent certified
562	570		county property tax rolls.
563	571		(b) The board by majority vote may dissolve the district at
564	572		any time.
565	573		(c) The district may not be dissolved by its board under
566	574		Subsection (a) or (b) if the district:
567	575		(1) has any outstanding bonded indebtedness until that
568	576		bonded indebtedness has been repaid or defeased in accordance with
569	577		the order or resolution authorizing the issuance of the bonds;
570	578		(2) has a contractual obligation to pay money until
571	579		that obligation has been fully paid in accordance with the
572	580		contract; or
573	581		(3) owns, operates, or maintains public works,
574	582		facilities, or improvements unless the district contracts with
575	583		another person for the ownership, operation, or maintenance of the
576	584		public works, facilities, or improvements.
577	585		(d) Sections 375.261, 375.262, and 375.264, Local
578	586		Government Code, do not apply to the district.
579	587		SECTION 2. The Wood Trace Management District of Montgomery
580	588		County, Texas, initially includes all the territory contained in
581	589		the following area:
582	590		Being a 92.63-acre tract of land, located in the Andrew J.
583	591		Hensley, Abstract No. 255 in Montgomery County, Texas; said
584	592		92.63-acre tract being out of a called 2,253.2253-acre tract of
585	593		land conveyed to Terra Investments, LP in Clerk's File Number
586	594		2004023496 of the Official Public Records of Real Property of
587	595		Montgomery County Texas (O.P.R.R.P.M.C.T.); said 92.63-acre tract
588	596		being more particularly described by metes and bounds as follows
589	597		(all bearings are referenced to the north line of said
590	598		2,253.2253-acre tract):
591	599		Beginning at a 5/8-inch iron rod with aluminum cap found at
592	600		the northwest corner of a called 10.0000-acre tract of land
593	601		recorded in Clerk's File Number 9350680 of the O.P.R.R.P.M.C.T.,
594	602		same being on the west line of said called 2,253.2253-acre tract and
595	603		the east right-of-way (R.O.W.) line of Highway 149 (60-feet wide);
596	604		1. Thence, with the common line of said Highway 149 and said
597	605		called 2,253.2253-acre tract, North 08 degrees 35 minutes 16
598	606		seconds West, a distance of 620.67 feet;
599	607		2. Thence, continuing with said common line, 291.17 feet
600	608		along the arc of a curve to the right, said curve having a central
601	609		angle of 05 degrees 59 minutes 03 seconds, a radius of 2,787.83 feet
602	610		and a chord that bears North 05 degrees 35 minutes 45 seconds West,
603	611		a distance of 291.04 feet;
604	612		3. Thence, with the northwest line of said called
605	613		2,253.2253-acre tract, North 42 degrees 18 minutes 44 seconds East,
606	614		a distance of 1,390.50 feet;
607	615		4. Thence, continuing with the northwest line of said called
608	616		2,253.2253-acre tract, North 43 degrees 05 minutes 06 seconds East,
609	617		a distance of 188.90 feet to the most westerly corner of a called
610	618		34.6647-acre tract of land recorded in Clerk's File Number
611	619		2018021947 of the O.P.R.R.P.M.C.T.;
612	620		Thence, with the west line of said called 34.6647-acre tract,
613	621		the following five (5) courses:
614	622		5. 1,433.79 feet along the arc of a curve to the right, said
615	623		curve having a central angle of 30 degrees 49 minutes 40 seconds, a
616	624		radius of 2,664.79 feet and a chord that bears South 25 degrees 30
617	625		minutes 44 seconds East, a distance of 1,416.55 feet;
618	626		6. South 10 degrees 05 minutes 54 seconds East, a distance of
619	627		415.32 feet;
620	628		7. South 10 degrees 05 minutes 54 seconds East, a distance of
621	629		300.00 feet;
622	630		8. South 10 degrees 05 minutes 54 seconds East, a distance of
623	631		516.07 feet;
624	632		9. 1,088.92 feet along the arc of a curve to the left, said
625	633		curve having a central angle of 10 degrees 31 minutes 19 seconds, a
626	634		radius of 5,929.58 feet and a chord that bears South 15 degrees 21
627	635		minutes 34 seconds East, a distance of 1,087.39 feet to the south
628	636		corner of aforesaid called 34.6647-acre tract, same being a
629	637		northwesterly line of a called 12.500-acre tract of land recorded
630	638		in Clerk's File Number 2014032464 of the O.P.R.R.P.M.C.T. and a
631	639		southeasterly interior line of aforesaid called 2,253.2253-acre
632	640		tract;
633	641		10. Thence, with the common line of said called 12.500-acre
634	642		tract and said called 2,253.2253-acre tract, South 41 degrees 39
635	643		minutes 24 seconds West, a distance of 434.22 feet to a westerly
636	644		corner of said called 2,253.2253-acre tract;
637	645		11. Thence, with the southwest line of said called
638	646		2,253.2253-acre tract, North 47 degrees 46 minutes 25 seconds West,
639	647		a distance of 1,585.59 feet to the south corner of aforesaid called
640	648		10.0000-acre tract;
641	649		Thence, with the east and north lines of said called
642	650		10.0000-acre tract, the following six (6) courses:
643	651		12. North 42 degrees 13 minutes 34 seconds East, a distance
644	652		of 435.59 feet;
645	653		13. North 30 degrees 32 minutes 17 seconds West, a distance
646	654		of 629.68 feet;
647	655		14. South 81 degrees 24 minutes 44 seconds West, a distance
648	656		of 342.11 feet;
649	657		15. South 54 degrees 50 minutes 52 seconds West, a distance
650	658		of 44.73 feet;
651	659		16. South 08 degrees 35 minutes 16 seconds East, a distance
652	660		of 30.00 feet;
653	661		17. South 81 degrees 24 minutes 44 seconds West, a distance
654	662		of 200.00 feet to the Point of Beginning and containing 92.63 acres
655	663		of land.
656	664		SECTION 3. (a) The legal notice of the intention to
657	665		introduce this Act, setting forth the general substance of this
658	666		Act, has been published as provided by law, and the notice and a
659	667		copy of this Act have been furnished to all persons, agencies,
660	668		officials, or entities to which they are required to be furnished
661	669		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
662	670		Government Code.
663	671		(b) The governor, one of the required recipients, has
664	672		submitted the notice and Act to the Texas Commission on
665	673		Environmental Quality.
666	674		(c) The Texas Commission on Environmental Quality has filed
667	675		its recommendations relating to this Act with the governor,
668	676		lieutenant governor, and speaker of the house of representatives
669	677		within the required time.
670	678		(d) All requirements of the constitution and laws of this
671	679		state and the rules and procedures of the legislature with respect
672	680		to the notice, introduction, and passage of this Act have been
673	681		fulfilled and accomplished.
674	682		SECTION 4. This Act takes effect immediately if it receives
675	683		a vote of two-thirds of all the members elected to each house, as
676	684		provided by Section 39, Article III, Texas Constitution. If this
677	685		Act does not receive the vote necessary for immediate effect, this
678	686		Act takes effect September 1, 2019.
679		-	______________________________ ______________________________
680		-	President of the Senate Speaker of the House
681		-	I certify that H.B. No. 4644 was passed by the House on May 3,
682		-	2019, by the following vote: Yeas 128, Nays 12, 2 present, not
683		-	voting; and that the House concurred in Senate amendments to H.B.
684		-	No. 4644 on May 24, 2019, by the following vote: Yeas 101, Nays 41,
685		-	2 present, not voting.
686		-	______________________________
687		-	Chief Clerk of the House
688		-	I certify that H.B. No. 4644 was passed by the Senate, with
689		-	amendments, on May 22, 2019, by the following vote: Yeas 28, Nays
690		-	3.
691		-	______________________________
692		-	Secretary of the Senate
693		-	APPROVED: __________________
694		-	Date
695		-	__________________
696		-	Governor
	687	+	* * * * *