Texas 2019 - 86th Regular

Texas Senate Bill SB2471 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R10259 SMT-F
2	2	By: Kolkhorst S.B. No. 2471
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Orchard Management District No. 1;
8	8	providing authority to issue bonds; providing authority to impose
9	9	assessments, fees, and taxes.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 4, Special District Local Laws
12	12	Code, is amended by adding Chapter 3792 to read as follows:
13	13	CHAPTER 3792. ORCHARD MANAGEMENT DISTRICT NO. 1
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 3792.0101. DEFINITIONS. In this chapter:
16	16	(1) "Board" means the district's board of directors.
17	17	(2) "Commission" means the Texas Commission on
18	18	Environmental Quality.
19	19	(3) "County" means Fort Bend County.
20	20	(4) "Director" means a board member.
21	21	(5) "District" means the Orchard Management District
22	22	No. 1.
23	23	Sec. 3792.0102. CREATION AND NATURE OF DISTRICT; IMMUNITY.
24	24	(a) The district is a special district created under Section 59,
25	25	Article XVI, Texas Constitution.
26	26	(b) The district is a governmental unit, as provided by
27	27	Section 375.004, Local Government Code.
28	28	(c) This chapter does not waive any governmental or
29	29	sovereign immunity from suit, liability, or judgment that would
30	30	otherwise apply to the district.
31	31	Sec. 3792.0103. PURPOSE; DECLARATION OF INTENT. (a) The
32	32	creation of the district is essential to accomplish the purposes of
33	33	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
34	34	Texas Constitution, and other public purposes stated in this
35	35	chapter.
36	36	(b) By creating the district, the legislature has
37	37	established a program to accomplish the public purposes set out in
38	38	Sections 52 and 52-a, Article III, Texas Constitution.
39	39	(c) The creation of the district is necessary to promote,
40	40	develop, encourage, and maintain employment, commerce,
41	41	transportation, housing, tourism, recreation, the arts,
42	42	entertainment, economic development, safety, and the public
43	43	welfare in the district.
44	44	(d) This chapter and the creation of the district may not be
45	45	interpreted to relieve the county or a municipality from providing
46	46	the level of services provided as of the effective date of the Act
47	47	enacting this chapter to the area in the district. The district is
48	48	created to supplement and not to supplant county or municipal
49	49	services provided in the district.
50	50	Sec. 3792.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
51	51	(a) All land and other property included in the district will
52	52	benefit from the improvements and services to be provided by the
53	53	district under powers conferred by Sections 52 and 52-a, Article
54	54	III, and Section 59, Article XVI, Texas Constitution, and other
55	55	powers granted under this chapter.
56	56	(b) The district is created to serve a public use and
57	57	benefit.
58	58	(c) The creation of the district is in the public interest
59	59	and is essential to further the public purposes of:
60	60	(1) developing and diversifying the economy of the
61	61	state;
62	62	(2) eliminating unemployment and underemployment; and
63	63	(3) developing or expanding transportation and
64	64	commerce.
65	65	(d) The district will:
66	66	(1) promote the health, safety, and general welfare of
67	67	residents, employers, potential employees, employees, visitors,
68	68	and consumers in the district, and of the public;
69	69	(2) provide needed funding for the district to
70	70	preserve, maintain, and enhance the economic health and vitality of
71	71	the district territory as a community and business center;
72	72	(3) promote the health, safety, welfare, and enjoyment
73	73	of the public by providing pedestrian ways, road facilities,
74	74	transit facilities, parking facilities, rail facilities,
75	75	recreational facilities, and public art objects and by landscaping
76	76	and developing certain areas in the district, which are necessary
77	77	for the restoration, preservation, and enhancement of scenic
78	78	beauty; and
79	79	(4) provide for water, wastewater, and drainage
80	80	facilities for the district.
81	81	(e) Pedestrian ways along or across a street, whether at
82	82	grade or above or below the surface, and street lighting, street
83	83	landscaping, parking, and street art objects are parts of and
84	84	necessary components of a street and are considered to be a street
85	85	or road improvement.
86	86	(f) The district will not act as the agent or
87	87	instrumentality of any private interest even though the district
88	88	will benefit many private interests as well as the public.
89	89	Sec. 3792.0105. INITIAL DISTRICT TERRITORY. (a) The
90	90	district is initially composed of the territory described by
91	91	Section 2 of the Act enacting this chapter.
92	92	(b) The boundaries and field notes contained in Section 2 of
93	93	the Act enacting this chapter form a closure. A mistake in the
94	94	field notes or in copying the field notes in the legislative process
95	95	does not affect the district's:
96	96	(1) organization, existence, or validity;
97	97	(2) right to issue any type of bonds for the purposes
98	98	for which the district is created or to pay the principal of and
99	99	interest on the bonds;
100	100	(3) right to impose or collect an assessment or tax; or
101	101	(4) legality or operation.
102	102	Sec. 3792.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
103	103	All or any part of the area of the district is eligible to be
104	104	included in:
105	105	(1) a tax increment reinvestment zone created under
106	106	Chapter 311, Tax Code;
107	107	(2) a tax abatement reinvestment zone created under
108	108	Chapter 312, Tax Code;
109	109	(3) an enterprise zone created under Chapter 2303,
110	110	Government Code; or
111	111	(4) an industrial district created under Chapter 42,
112	112	Local Government Code.
113	113	Sec. 3792.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
114	114	DISTRICTS LAW. Except as otherwise provided by this chapter,
115	115	Chapter 375, Local Government Code, applies to the district.
116	116	Sec. 3792.0108. LIBERAL CONSTRUCTION OF CHAPTER. This
117	117	chapter shall be liberally construed in conformity with the
118	118	findings and purposes stated in this chapter.
119	119	Sec. 3792.0109. CONFLICTS OF LAW. This chapter prevails
120	120	over any provision of general law, including a provision of Chapter
121	121	375, Local Government Code, or Chapter 49, Water Code, that is in
122	122	conflict or inconsistent with this chapter.
123	123	SUBCHAPTER B. BOARD OF DIRECTORS
124	124	Sec. 3792.0201. GOVERNING BODY; TERMS. (a) The district is
125	125	governed by a board of five directors elected or appointed as
126	126	provided by this chapter and Subchapter D, Chapter 49, Water Code.
127	127	(b) Except as provided by Section 3792.0203, directors
128	128	serve staggered four-year terms.
129	129	Sec. 3792.0202. COMPENSATION. A director is entitled to
130	130	receive fees of office and reimbursement for actual expenses as
131	131	provided by Section 49.060, Water Code. Sections 375.069 and
132	132	375.070, Local Government Code, do not apply to the board.
133	133	Sec. 3792.0203. TEMPORARY DIRECTORS. (a) On or after the
134	134	effective date of the Act enacting this chapter, the owner or owners
135	135	of a majority of the assessed value of the real property in the
136	136	district according to the most recent certified tax appraisal roll
137	137	for the county may submit a petition to the commission requesting
138	138	that the commission appoint as temporary directors the five persons
139	139	named in the petition. The commission shall appoint as temporary
140	140	directors the five persons named in the petition.
141	141	(b) The temporary directors shall hold an election to elect
142	142	five permanent directors as provided by Section 49.102, Water Code.
143	143	(c) Temporary directors serve until the earlier of:
144	144	(1) the date permanent directors are elected under
145	145	Subsection (b); or
146	146	(2) the fourth anniversary of the effective date of
147	147	the Act enacting this chapter.
148	148	(d) If permanent directors have not been elected under
149	149	Subsection (b) and the terms of the temporary directors have
150	150	expired, successor temporary directors shall be appointed or
151	151	reappointed as provided by Subsection (e) to serve terms that
152	152	expire on the earlier of:
153	153	(1) the date permanent directors are elected under
154	154	Subsection (b); or
155	155	(2) the fourth anniversary of the date of the
156	156	appointment or reappointment.
157	157	(e) If Subsection (d) applies, the owner or owners of a
158	158	majority of the assessed value of the real property in the district
159	159	according to the most recent certified tax appraisal roll for the
160	160	county may submit a petition to the commission requesting that the
161	161	commission appoint as successor temporary directors the five
162	162	persons named in the petition. The commission shall appoint as
163	163	successor temporary directors the five persons named in the
164	164	petition.
165	165	Sec. 3792.0204. DISQUALIFICATION OF DIRECTORS. Section
166	166	49.052, Water Code, applies to the members of the board.
167	167	SUBCHAPTER C. POWERS AND DUTIES
168	168	Sec. 3792.0301. GENERAL POWERS AND DUTIES. The district
169	169	has the powers and duties necessary to accomplish the purposes for
170	170	which the district is created.
171	171	Sec. 3792.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
172	172	The district, using any money available to the district for the
173	173	purpose, may provide, design, construct, acquire, improve,
174	174	relocate, operate, maintain, or finance an improvement project or
175	175	service authorized under this chapter or Chapter 375, Local
176	176	Government Code.
177	177	(b) The district may contract with a governmental or private
178	178	entity to carry out an action under Subsection (a).
179	179	(c) The implementation of a district project or service is a
180	180	governmental function or service for the purposes of Chapter 791,
181	181	Government Code.
182	182	Sec. 3792.0303. RECREATIONAL FACILITIES. The district may
183	183	develop or finance recreational facilities as authorized by Chapter
184	184	375, Local Government Code, Sections 52 and 52-a, Article III,
185	185	Texas Constitution, Section 59, Article XVI, Texas Constitution,
186	186	and any other law that applies to the district.
187	187	Sec. 3792.0304. AUTHORITY FOR ROAD PROJECTS. Under Section
188	188	52, Article III, Texas Constitution, the district may own, operate,
189	189	maintain, design, acquire, construct, finance, issue bonds, notes,
190	190	or other obligations for, improve, and convey to this state, a
191	191	county, or a municipality for ownership, operation, and maintenance
192	192	macadamized, graveled, or paved roads or improvements, including
193	193	storm drainage, in aid of those roads.
194	194	Sec. 3792.0305. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
195	195	(a) The district may convey a road project authorized by Section
196	196	3792.0304 to:
197	197	(1) a municipality or county that will operate and
198	198	maintain the road if the municipality or county has approved the
199	199	plans and specifications of the road project; or
200	200	(2) the state if the state will operate and maintain
201	201	the road and the Texas Transportation Commission has approved the
202	202	plans and specifications of the road project.
203	203	(b) Except as provided by Subsection (c), the district shall
204	204	operate and maintain a road project authorized by Section 3792.0304
205	205	that the district implements and does not convey to a municipality,
206	206	a county, or this state under Subsection (a).
207	207	(c) The district may agree in writing with a municipality, a
208	208	county, or this state to assign operation and maintenance duties to
209	209	the district, the municipality, the county, or this state in a
210	210	manner other than the manner described in Subsections (a) and (b).
211	211	Sec. 3792.0306. RAIL FACILITIES. In addition to the powers
212	212	granted under Section 375.0921(b), Local Government Code, the
213	213	district may construct, acquire, improve, maintain, finance, and
214	214	operate rail facilities and improvements in aid of those facilities
215	215	for the transport of freight and other cargo.
216	216	Sec. 3792.0307. NONPROFIT CORPORATION. (a) The board by
217	217	resolution may authorize the creation of a nonprofit corporation to
218	218	assist and act for the district in implementing a project or
219	219	providing a service authorized by this chapter.
220	220	(b) The nonprofit corporation:
221	221	(1) has each power of and is considered to be a local
222	222	government corporation created under Subchapter D, Chapter 431,
223	223	Transportation Code; and
224	224	(2) may implement any project and provide any service
225	225	authorized by this chapter.
226	226	(c) The board shall appoint the board of directors of the
227	227	nonprofit corporation. The board of directors of the nonprofit
228	228	corporation shall serve in the same manner as the board of directors
229	229	of a local government corporation created under Subchapter D,
230	230	Chapter 431, Transportation Code, except that a board member is not
231	231	required to reside in the district.
232	232	Sec. 3792.0308. LAW ENFORCEMENT SERVICES. Section 49.216,
233	233	Water Code, applies to the district.
234	234	Sec. 3792.0309. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
235	235	The district may join and pay dues to a charitable or nonprofit
236	236	organization that performs a service or provides an activity
237	237	consistent with the furtherance of a district purpose.
238	238	Sec. 3792.0310. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
239	239	district may engage in activities that accomplish the economic
240	240	development purposes of the district.
241	241	(b) The district may establish and provide for the
242	242	administration of one or more programs to promote state or local
243	243	economic development and to stimulate business and commercial
244	244	activity in the district, including programs to:
245	245	(1) make loans and grants of public money; and
246	246	(2) provide district personnel and services.
247	247	(c) The district may create economic development programs
248	248	and exercise the economic development powers that:
249	249	(1) Chapter 380, Local Government Code, provides to a
250	250	municipality; and
251	251	(2) Subchapter A, Chapter 1509, Government Code,
252	252	provides to a municipality.
253	253	Sec. 3792.0311. STRATEGIC PARTNERSHIP AGREEMENT. The
254	254	district may negotiate and enter into a written strategic
255	255	partnership agreement with a municipality under Section 43.0751,
256	256	Local Government Code.
257	257	Sec. 3792.0312. REGIONAL PARTICIPATION AGREEMENT. The
258	258	district may negotiate and enter into a written regional
259	259	participation agreement with a municipality under Section 43.0754,
260	260	Local Government Code.
261	261	Sec. 3792.0313. PARKING FACILITIES. (a) The district may
262	262	acquire, lease as lessor or lessee, construct, develop, own,
263	263	operate, and maintain parking facilities or a system of parking
264	264	facilities, including lots, garages, parking terminals, or other
265	265	structures or accommodations for parking motor vehicles off the
266	266	streets and related appurtenances.
267	267	(b) The district's parking facilities serve the public
268	268	purposes of the district and are owned, used, and held for a public
269	269	purpose even if leased or operated by a private entity for a term of
270	270	years.
271	271	(c) The district's parking facilities are parts of and
272	272	necessary components of a street and are considered to be a street
273	273	or road improvement.
274	274	(d) The development and operation of the district's parking
275	275	facilities may be considered an economic development program.
276	276	Sec. 3792.0314. ADDING OR EXCLUDING LAND. (a) The district
277	277	may add land as provided by Subchapter J, Chapter 49, Water Code.
278	278	(b) The district may exclude land as provided by Subchapter
279	279	J, Chapter 49, Water Code. Section 375.044(b), Local Government
280	280	Code, does not apply to the district.
281	281	(c) The district may include and exclude land as provided by
282	282	Sections 54.739-54.747, Water Code. A reference in those sections
283	283	to a "tax" means an ad valorem tax for the purposes of this
284	284	subsection.
285	285	(d) If the district adopts a sales and use tax authorized at
286	286	an election held under Section 3792.0602 and subsequently includes
287	287	new territory in the district under this section, the district:
288	288	(1) is not required to hold another election to
289	289	approve the imposition of the sales and use tax in the included
290	290	territory; and
291	291	(2) shall impose the sales and use tax in the included
292	292	territory as provided by Chapter 321, Tax Code.
293	293	(e) If the district adopts a sales and use tax authorized at
294	294	an election held under Section 3792.0602 and subsequently excludes
295	295	territory in the district under this section, the sales and use tax
296	296	is inapplicable to the excluded territory, as provided by Chapter
297	297	321, Tax Code, but is applicable to the territory remaining in the
298	298	district.
299	299	Sec. 3792.0315. DISBURSEMENTS AND TRANSFERS OF MONEY. The
300	300	board by resolution shall establish the number of directors'
301	301	signatures and the procedure required for a disbursement or
302	302	transfer of district money.
303	303	Sec. 3792.0316. AUDIT EXEMPTION. (a) The district may
304	304	elect to complete an annual financial report in lieu of an annual
305	305	audit under Section 375.096(a)(6), Local Government Code, if:
306	306	(1) the district had no bonds or other long-term (more
307	307	than one year) liabilities outstanding during the fiscal period;
308	308	(2) the district did not have gross receipts from
309	309	operations, loans, taxes, assessments, or contributions in excess
310	310	of $250,000 during the fiscal period; and
311	311	(3) the district's cash and temporary investments were
312	312	not in excess of $250,000 during the fiscal period.
313	313	(b) Each annual financial report prepared in accordance
314	314	with this section must be open to public inspection and accompanied
315	315	by an affidavit signed by a duly authorized representative of the
316	316	district attesting to the accuracy and authenticity of the
317	317	financial report.
318	318	(c) The annual financial report and affidavit shall be
319	319	substantially similar in form to the annual financial report and
320	320	affidavit forms prescribed by the executive director of the
321	321	commission under Section 49.198, Water Code.
322	322	Sec. 3792.0317. NO EMINENT DOMAIN POWER. The district may
323	323	not exercise the power of eminent domain.
324	324	SUBCHAPTER D. ASSESSMENTS
325	325	Sec. 3792.0401. PETITION REQUIRED FOR FINANCING SERVICES
326	326	AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
327	327	service or improvement project with assessments under this chapter
328	328	unless a written petition requesting that service or improvement
329	329	has been filed with the board.
330	330	(b) A petition filed under Subsection (a) must be signed by
331	331	the owners of a majority of the assessed value of real property in
332	332	the district subject to assessment according to the most recent
333	333	certified tax appraisal roll for the county.
334	334	Sec. 3792.0402. METHOD OF NOTICE FOR HEARING. The district
335	335	may mail the notice required by Section 375.115(c), Local
336	336	Government Code, by certified or first class United States mail.
337	337	The board shall determine the method of notice.
338	338	Sec. 3792.0403. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
339	339	The board by resolution may impose and collect an assessment for any
340	340	purpose authorized by this chapter in all or any part of the
341	341	district.
342	342	(b) An assessment, a reassessment, or an assessment
343	343	resulting from an addition to or correction of the assessment roll
344	344	by the district, penalties and interest on an assessment or
345	345	reassessment, an expense of collection, and reasonable attorney's
346	346	fees incurred by the district:
347	347	(1) are a first and prior lien against the property
348	348	assessed;
349	349	(2) are superior to any other lien or claim other than
350	350	a lien or claim for county, school district, or municipal ad valorem
351	351	taxes; and
352	352	(3) are the personal liability of and a charge against
353	353	the owners of the property even if the owners are not named in the
354	354	assessment proceedings.
355	355	(c) The lien is effective from the date of the board's
356	356	resolution imposing the assessment until the date the assessment is
357	357	paid. The board may enforce the lien in the same manner that the
358	358	board may enforce an ad valorem tax lien against real property.
359	359	(d) The board may make a correction to or deletion from the
360	360	assessment roll that does not increase the amount of assessment of
361	361	any parcel of land without providing notice and holding a hearing in
362	362	the manner required for additional assessments.
363	363	SUBCHAPTER E. TAXES AND BONDS
364	364	Sec. 3792.0501. TAX ELECTION REQUIRED. The district must
365	365	hold an election in the manner provided by Chapter 49, Water Code,
366	366	or, if applicable, Chapter 375, Local Government Code, to obtain
367	367	voter approval before the district may impose an ad valorem tax.
368	368	Sec. 3792.0502. OPERATION AND MAINTENANCE TAX. (a) If
369	369	authorized by a majority of the district voters voting at an
370	370	election under Section 3792.0501, the district may impose an
371	371	operation and maintenance tax on taxable property in the district
372	372	in the manner provided by Section 49.107, Water Code, for any
373	373	district purpose, including to:
374	374	(1) maintain and operate the district;
375	375	(2) construct or acquire improvements; or
376	376	(3) provide a service.
377	377	(b) The board shall determine the operation and maintenance
378	378	tax rate. The rate may not exceed the rate approved at the
379	379	election.
380	380	(c) Section 49.107(h), Water Code, does not apply to the
381	381	district.
382	382	Sec. 3792.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE
383	383	BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
384	384	terms determined by the board.
385	385	(b) The district, by competitive bid or negotiated sale, may
386	386	issue bonds, notes, or other obligations payable wholly or partly
387	387	from ad valorem taxes, assessments, impact fees, revenue, contract
388	388	payments, grants, or other district money, or any combination of
389	389	those sources of money, to pay for any authorized district purpose.
390	390	(c) The limitation on the outstanding principal amount of
391	391	bonds, notes, or other obligations provided by Section 49.4645,
392	392	Water Code, does not apply to the district.
393	393	Sec. 3792.0504. BONDS SECURED BY REVENUE OR CONTRACT
394	394	PAYMENTS. The district may issue, without an election, bonds
395	395	secured by:
396	396	(1) revenue other than ad valorem taxes, including
397	397	contract revenues; or
398	398	(2) contract payments, provided that the requirements
399	399	of Section 49.108, Water Code, have been met.
400	400	Sec. 3792.0505. BONDS SECURED BY AD VALOREM TAXES;
401	401	ELECTIONS. (a) If authorized at an election under Section
402	402	3792.0501, the district may issue bonds payable from ad valorem
403	403	taxes.
404	404	(b) Section 375.243, Local Government Code, does not apply
405	405	to the district.
406	406	(c) At the time the district issues bonds payable wholly or
407	407	partly from ad valorem taxes, the board shall provide for the annual
408	408	imposition of a continuing direct annual ad valorem tax, without
409	409	limit as to rate or amount, for each year that all or part of the
410	410	bonds are outstanding as required and in the manner provided by
411	411	Sections 54.601 and 54.602, Water Code.
412	412	(d) All or any part of any facilities or improvements that
413	413	may be acquired by a district by the issuance of its bonds may be
414	414	submitted as a single proposition or as several propositions to be
415	415	voted on at the election.
416	416	Sec. 3792.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The
417	417	board may not issue bonds until each municipality in whose
418	418	corporate limits or extraterritorial jurisdiction the district is
419	419	located has consented by ordinance or resolution to the creation of
420	420	the district and to the inclusion of land in the district.
421	421	(b) This section applies only to the district's first
422	422	issuance of bonds payable from ad valorem taxes.
423	423	SUBCHAPTER F. SALES AND USE TAX
424	424	Sec. 3792.0601. APPLICABILITY OF CERTAIN TAX CODE
425	425	PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
426	426	computation, administration, enforcement, and collection of the
427	427	sales and use tax authorized by this subchapter except to the extent
428	428	Chapter 321, Tax Code, is inconsistent with this chapter.
429	429	(b) A reference in Chapter 321, Tax Code, to a municipality
430	430	or the governing body of a municipality is a reference to the
431	431	district or the board, respectively.
432	432	Sec. 3792.0602. ELECTION; ADOPTION OF TAX. (a) The
433	433	district may adopt a sales and use tax if authorized by a majority
434	434	of the voters of the district voting at an election held for that
435	435	purpose.
436	436	(b) The board by order may call an election to authorize the
437	437	adoption of the sales and use tax. The election may be held on any
438	438	uniform election date and in conjunction with any other district
439	439	election.
440	440	(c) The ballot shall be printed to provide for voting for or
441	441	against the proposition: "Authorization of a sales and use tax in
442	442	the Orchard Management District No. 1 at a rate not to exceed ____
443	443	percent" (insert rate of one or more increments of one-eighth of one
444	444	percent).
445	445	Sec. 3792.0603. SALES AND USE TAX RATE. (a) On or after the
446	446	date the results are declared of an election held under Section
447	447	3792.0602, at which the voters approved imposition of the tax
448	448	authorized by this subchapter, the board shall determine and adopt
449	449	by resolution or order the initial rate of the tax, which must be in
450	450	one or more increments of one-eighth of one percent.
451	451	(b) After the election held under Section 3792.0602, the
452	452	board may increase or decrease the rate of the tax by one or more
453	453	increments of one-eighth of one percent.
454	454	(c) The initial rate of the tax or any rate resulting from
455	455	subsequent increases or decreases may not exceed the lesser of:
456	456	(1) the maximum rate authorized by the district voters
457	457	at the election held under Section 3792.0602; or
458	458	(2) a rate that, when added to the rates of all sales
459	459	and use taxes imposed by other political subdivisions with
460	460	territory in the district, would result in the maximum combined
461	461	rate prescribed by Section 321.101(f), Tax Code, at any location in
462	462	the district.
463	463	Sec. 3792.0604. TAX AFTER MUNICIPAL ANNEXATION. (a) This
464	464	section applies to the district after a municipality annexes part
465	465	of the territory in the district and imposes the municipality's
466	466	sales and use tax in the annexed territory.
467	467	(b) If at the time of annexation the district has
468	468	outstanding debt or other obligations payable wholly or partly from
469	469	district sales and use tax revenue, Section 321.102(g), Tax Code,
470	470	applies to the district.
471	471	(c) If at the time of annexation the district does not have
472	472	outstanding debt or other obligations payable wholly or partly from
473	473	district sales and use tax revenue, the district may:
474	474	(1) exclude the annexed territory from the district,
475	475	if the district has no outstanding debt or other obligations
476	476	payable from any source; or
477	477	(2) reduce the sales and use tax in the annexed
478	478	territory by resolution or order of the board to a rate that, when
479	479	added to the sales and use tax rate imposed by the municipality in
480	480	the annexed territory, is equal to the sales and use tax rate
481	481	imposed by the district in the district territory that was not
482	482	annexed by the municipality.
483	483	Sec. 3792.0605. NOTIFICATION OF RATE CHANGE. The board
484	484	shall notify the comptroller of any changes made to the tax rate
485	485	under this subchapter in the same manner the municipal secretary
486	486	provides notice to the comptroller under Section 321.405(b), Tax
487	487	Code.
488	488	Sec. 3792.0606. USE OF REVENUE. Revenue from the sales and
489	489	use tax imposed under this subchapter is for the use and benefit of
490	490	the district and may be used for any district purpose. The district
491	491	may pledge all or part of the revenue to the payment of bonds,
492	492	notes, or other obligations, and that pledge of revenue may be in
493	493	combination with other revenue, including tax revenue, available to
494	494	the district.
495	495	Sec. 3792.0607. ABOLITION OF TAX. (a) Except as provided
496	496	by Subsection (b), the board may abolish the tax imposed under this
497	497	subchapter without an election.
498	498	(b) The board may not abolish the tax imposed under this
499	499	subchapter if the district has outstanding debt secured by the tax,
500	500	and repayment of the debt would be impaired by the abolition of the
501	501	tax.
502	502	(c) If the board abolishes the tax, the board shall notify
503	503	the comptroller of that action in the same manner the municipal
504	504	secretary provides notice to the comptroller under Section
505	505	321.405(b), Tax Code.
506	506	(d) If the board abolishes the tax or decreases the tax rate
507	507	to zero, a new election to authorize a sales and use tax must be held
508	508	under Section 3792.0602 before the district may subsequently impose
509	509	the tax.
510	510	(e) This section does not apply to a decrease in the sales
511	511	and use tax authorized under Section 3792.0604(c)(2).
512	512	SUBCHAPTER G. DISSOLUTION
513	513	Sec. 3792.0701. DISSOLUTION OF DISTRICT WITH OUTSTANDING
514	514	DEBT. (a) The board may dissolve the district regardless of
515	515	whether the district has debt. Section 375.264, Local Government
516	516	Code, does not apply to the district.
517	517	(b) If the district has debt when it is dissolved, the
518	518	district shall remain in existence solely for the purpose of
519	519	discharging its debts. The dissolution is effective when all debts
520	520	have been discharged.
521	521	SECTION 2. The Orchard Management District No. 1 initially
522	522	includes all the territory contained in the following area:
523	523	A Field Note Description of 920 Acres of Land, more or less,
524	524	being the Easterly 287.5 Acres of Land, more or less, of the German
525	525	Emigration Company Survey No. 6, Abstract 176 and 632.5 Acres of
526	526	Land, more or less, being the remainder of the David Scott Heirs
527	527	Survey, Abstract 316, Fort Bend County, Texas.
528	528	Beginning at a point in the South line of the Gail Borden
529	529	League, Abstract 12 marking the Northwest corner of the Peter
530	530	McGreal Survey, Abstract 338 and Northeast corner of said German
531	531	Emigration Company Survey No. 6, Abstract 176 and the Northeast
532	532	corner of and place of beginning for this 920 Acre Tract;
533	533	THENCE, South, 3279.63 feet, more or less, along the East
534	534	line of said German Emigration Company Survey No. 6, Abstract 176
535	535	and the West line of said Peter McGreal Survey, Abstract 338 to the
536	536	Southeast corner of said German Emigration Company Survey No. 6,
537	537	Abstract 176 and the Southwest corner of said Peter McGreal Survey,
538	538	Abstract 338 to a point marking a re-entrant corner for this tract;
539	539	THENCE, East, 1120 feet, more or less, along the North line of
540	540	the David Scott Heirs Survey, Abstract 316 and the South line of
541	541	said Peter McGreal Survey, Abstract 338 to a point marking the
542	542	Northeast corner of said David Scott Heirs Survey, Abstract 316 and
543	543	Northwest corner of the German Emigration Company Survey No. 8,
544	544	Abstract 177 and marking a Southerly Northeast corner for this
545	545	tract;
546	546	THENCE, South, 5445 feet, more or less, along the East line of
547	547	said David Scott Heirs Survey, Abstract 316 and West line of said
548	548	German Emigration Company Survey No. 8, Abstract 177 and Heirs of
549	549	L. Burknapp Survey, Abstract 109 to the Southeast corner of said
550	550	David Scott Heirs Survey, Abstract 316 for the Southeast corner of
551	551	this tract; said corner also marking the Northeast corner of the
552	552	Mark Smith Survey, Abstract 314;
553	553	THENCE, West, 5060 feet, more or less, along the North line of
554	554	the Mark Smith Survey, Abstract 314 and South line of said David
555	555	Scott Heirs Survey, Abstract 316 to a point in the East right-of-way
556	556	line of State Farm Market Road No. 1489 marking the Southwest
557	557	corner for this tract;
558	558	THENCE, North, along said East right-of-way line of said
559	559	State Farm Market Road No. 1489, at 5445 feet, more or less, pass
560	560	the North line of said David Scott Heirs Survey, Abstract 316 and
561	561	South line of said German Emigration Company Survey No. 6, Abstract
562	562	176, in all 7487.25 feet, more or less, to the point of curve to the
563	563	right;
564	564	THENCE, Continuing along said Southeast right-of-way line of
565	565	State Farm Market Road No. 1489, Northeasterly along a curve to the
566	566	right with the following data: Delta=63degrees 19'06',
567	567	Radius=1086.28 feet, Length=1200.48 feet and Chord= North
568	568	31deg.39'33" East, 1140.3 feet, more or less to point of tangency;
569	569	THENCE, North 63deg.19'06" East, 594.11 feet, more or less
570	570	along said Southeast right-of-way line of State Farm Market Road
571	571	No. 1489 to a point in the South line of said Gail Borden League,
572	572	Abstract 12 marking the Northwest corner for this tract;
573	573	THENCE, East, 2810.65 feet, more or less, along said South
574	574	line of said Gail Borden League, Abstract 12 and North line of said
575	575	German Emigration Company Survey No. 6 to the place of beginning
576	576	and containing 920 Acres of Land, more or less.
577	577	SECTION 3. (a) The legal notice of the intention to
578	578	introduce this Act, setting forth the general substance of this
579	579	Act, has been published as provided by law, and the notice and a
580	580	copy of this Act have been furnished to all persons, agencies,
581	581	officials, or entities to which they are required to be furnished
582	582	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
583	583	Government Code.
584	584	(b) The governor, one of the required recipients, has
585	585	submitted the notice and Act to the Texas Commission on
586	586	Environmental Quality.
587	587	(c) The Texas Commission on Environmental Quality has filed
588	588	its recommendations relating to this Act with the governor,
589	589	lieutenant governor, and speaker of the house of representatives
590	590	within the required time.
591	591	(d) All requirements of the constitution and laws of this
592	592	state and the rules and procedures of the legislature with respect
593	593	to the notice, introduction, and passage of this Act have been
594	594	fulfilled and accomplished.
595	595	SECTION 4. This Act takes effect immediately if it receives
596	596	a vote of two-thirds of all the members elected to each house, as
597	597	provided by Section 39, Article III, Texas Constitution. If this
598	598	Act does not receive the vote necessary for immediate effect, this
599	599	Act takes effect September 1, 2019.