Texas 2019 - 86th Regular

Texas Senate Bill SB2482 Latest Draft

Bill / Comm Sub Version Filed 04/23/2019

                            By: Nichols S.B. No. 2482
 (In the Senate - Filed March 27, 2019; March 27, 2019, read
 first time and referred to Committee on Intergovernmental
 Relations; April 23, 2019, reported favorably by the following
 vote:  Yeas 6, Nays 0; April 23, 2019, sent to printer.)
Click here to see the committee vote


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of Tarkington Management District No. 1 of
 Liberty County; providing authority to issue bonds; providing
 authority to impose assessments, fees, or 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 3973 to read as follows:
 CHAPTER 3973.  TARKINGTON MANAGEMENT DISTRICT NO. 1 OF LIBERTY
 COUNTY
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 3973.0101.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "County" means Liberty County.
 (3)  "Director" means a board member.
 (4)  "District" means the Tarkington Management
 District No. 1 of Liberty County.
 Sec. 3973.0102.  NATURE OF DISTRICT. The district is a
 special district created under Section 59, Article XVI, Texas
 Constitution.
 Sec. 3973.0103.  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 and in authorizing the county and
 other political subdivisions to contract with the district, the
 legislature has established a program to accomplish the public
 purposes set out in Section 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 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 county services provided in the
 district.
 Sec. 3973.0104.  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;
 (3)  promote the health, safety, welfare, and enjoyment
 of the public by providing pedestrian ways and by landscaping and
 developing certain areas in the district, which are necessary for
 the restoration, preservation, and enhancement of scenic beauty;
 and
 (4)  provide for water, wastewater, drainage, road,
 transportation, and recreational facilities for the district.
 (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. 3973.0105.  INITIAL 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 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 for the purposes
 for which the district is created or to pay the principal of and
 interest on the bonds;
 (3)  right to impose or collect an assessment or tax; or
 (4)  legality or operation.
 Sec. 3973.0106.  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. 3973.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
 DISTRICTS LAW. Except as otherwise provided by this chapter,
 Chapter 375, Local Government Code, applies to the district.
 Sec. 3973.0108.  CONSTRUCTION OF CHAPTER. This chapter
 shall be liberally construed in conformity with the findings and
 purposes stated in this chapter.
 Sec. 3973.0109.  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. 3973.0201.  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 3973.0204, directors
 serve staggered four-year terms.
 Sec. 3973.0202.  QUORUM. For purposes of determining the
 requirements for a quorum of the board, the following are not
 counted:
 (1)  a board position vacant for any reason, including
 death, resignation, or disqualification; or
 (2)  a director who is abstaining from participation in
 a vote because of a conflict of interest.
 Sec. 3973.0203.  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. 3973.0204.  TEMPORARY DIRECTORS. (a)  The temporary
 board consists of:
 (1)  Gready Hunter;
 (2)  Kevin Loeffler;
 (3)  Rusty Campbell;
 (4)  Greg Eknoyan; and
 (5)  Gordan Richardson.
 (b)  The temporary or successor temporary directors shall
 hold an election to elect five permanent directors as provided by
 Section 49.102, Water Code.
 (c)  Temporary directors serve until the earlier of:
 (1)  the date permanent directors are elected under
 Subsection (b); or
 (2)  the fourth anniversary of the effective date of
 the Act creating this chapter.
 (d)  If permanent directors have not been elected under
 Subsection (b) and the terms of the temporary directors have
 expired, successor temporary directors shall be appointed or
 reappointed as provided by Subsection (e) to serve terms that
 expire on the earlier of:
 (1)  the date permanent directors are elected under
 Subsection (b); or
 (2)  the fourth anniversary of the date of the
 appointment or reappointment.
 (e)  If Subsection (d) 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.
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 3973.0301.  GENERAL POWERS AND DUTIES.  The district
 has the powers and duties necessary to accomplish the purposes for
 which the district is created.
 Sec. 3973.0302.  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. 3973.0303.  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. 3973.0304.  CONVEYANCE AND APPROVAL OF ROAD PROJECT.
 (a)  The district may convey a road project authorized by Section
 3973.0303 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 3973.0303
 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. 3973.0305.  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. 3973.0306.  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. 3973.0307.  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. 3973.0308.  LAW ENFORCEMENT SERVICES.  To protect the
 public interest, the district may contract with a qualified party,
 including the county, to provide law enforcement services in the
 district.
 Sec. 3973.0309.  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. 3973.0310.  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 provided to
 municipalities by:
 (1)  Chapter 380, Local Government Code; and
 (2)  Subchapter A, Chapter 1509, Government Code.
 Sec. 3973.0311.  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. 3973.0312.  NO TOLL ROADS. The district may not
 construct, acquire, maintain, or operate a toll road.
 Sec. 3973.0313.  RAIL FACILITIES.  The district may
 construct, acquire, improve, maintain, and operate rail facilities
 and improvements in aid of those facilities.
 Sec. 3973.0314.  RURAL PUBLIC TRANSPORTATION POWERS.
 (a)  The district may provide and coordinate rural public
 transportation in its territory in the manner provided by Sections
 458.010 and 458.011, Transportation Code, for a rural transit
 district.
 (b)  Section 458.012(a), Transportation Code, does not apply
 to the operations of the district under Subsection (a).
 Sec. 3973.0315.  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.
 Sec. 3973.0316.  DIVISION OF DISTRICT.  (a)  The district
 may be divided into two or more new districts only if the district:
 (1)  has no outstanding bonded debt; and
 (2)  is not imposing ad valorem taxes.
 (b)  This chapter applies to any new district created by the
 division of the district, and a new district has all the powers and
 duties of the district.
 (c)  Any new district created by the division of the district
 may, at the time the new district is created, contain only:
 (1)  land within the area described by Section 2 of the
 Act enacting this chapter; or
 (2)  any land adjacent to the area described by Section
 2 of the Act enacting this chapter if that adjacent land is:
 (A)  not within the extraterritorial jurisdiction
 of a city; or
 (B)  within the extraterritorial jurisdiction of
 a city and that adjacent land has been approved for inclusion in the
 district under an ordinance or resolution adopted by the city
 consenting to the inclusion.
 (d)  The board, on its own motion or on receipt of a petition
 signed by the owner or owners of a majority of the assessed value of
 the real property in the district, may adopt an order dividing the
 district.
 (e)  The board may adopt an order dividing the district
 before or after the date the board holds an election under Section
 3973.0204 to elect the district's permanent directors.
 (f)  An order dividing the district must:
 (1)  name each new district;
 (2)  include the metes and bounds description of the
 territory of each new district;
 (3)  appoint temporary directors for each new district;
 and
 (4)  provide for the division of assets and liabilities
 between or among the new districts.
 (g)  On or before the 30th day after the date of adoption of
 an order dividing the district, the district shall file the order
 with the Texas Commission on Environmental Quality and record the
 order in the real property records of each county in which the
 district is located.
 (h)  Any new district created by the division of the district
 shall hold a permanent directors' election as required by Section
 3973.0204.
 (i)  Municipal consent by a city is not required for the
 creation of any new district created under this section.
 (j)  Any new district created by the division of the district
 must hold an election as required by this chapter to obtain voter
 approval before the district may impose a maintenance tax or issue
 bonds payable wholly or partly from ad valorem taxes or sales and
 use taxes.
 (k)  If the voters of a new district do not confirm the
 creation of the new district, the assets, obligations, territory,
 and governance of the new district revert to that of the original
 district.
 Sec. 3973.0317.  NO EMINENT DOMAIN POWER.  The district may
 not exercise the power of eminent domain.
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
 Sec. 3973.0401.  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. 3973.0402.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
 The district may acquire, construct, finance, operate, or maintain
 any improvement or service authorized under this chapter or Chapter
 375, Local Government Code, using any money available to the
 district.
 Sec. 3973.0403.  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)  A petition filed under Subsection (a) 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. 3973.0404.  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.
 (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:
 (1)  are a first and prior lien against the property
 assessed;
 (2)  are superior to any other lien or claim other than
 a lien or claim for county, school district, or municipal ad valorem
 taxes; and
 (3)  are 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. 3973.0405.  RESIDENTIAL PROPERTY NOT EXEMPT. Section
 375.161, Local Government Code, does not apply to a tax authorized
 or approved by the voters of the district or a required payment for
 a service provided by the district, including water and sewer
 services.
 Sec. 3973.0406.  COMPETITIVE BIDDING.  Subchapter I, Chapter
 49, Water Code, applies to the district.  Sections 375.221 and
 375.223, Local Government Code, do not apply to the district.
 Sec. 3973.0407.  TAX AND ASSESSMENT ABATEMENTS. The
 district may designate reinvestment zones and may grant abatements
 of district taxes or assessments on property in the zones.
 SUBCHAPTER E. TAXES AND BONDS
 Sec. 3973.0501.  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 sales and
 use taxes; or
 (2)  contract payments described by Section 3973.0503.
 (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 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 by the issuance of its bonds may be
 submitted as a single proposition or as several propositions to be
 voted on at the election.
 Sec. 3973.0502.  OPERATION AND MAINTENANCE TAX. (a)  If
 authorized by a majority of the district voters voting at an
 election held in accordance with Section 3973.0501, the district
 may impose an 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)  maintain and operate 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. 3973.0503.  CONTRACT TAXES. (a)  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.
 (b)  A contract approved by the district voters may contain a
 provision stating that the contract may be modified or amended by
 the board without further voter approval.
 Sec. 3973.0504.  AUTHORITY TO BORROW MONEY AND TO ISSUE
 BONDS AND OTHER OBLIGATIONS. (a)  The district may borrow money on
 terms determined by the board. Section 375.205, Local Government
 Code, does not apply to a loan, line of credit, or other borrowing
 from a bank or financial institution secured by revenue other than
 ad valorem taxes.
 (b)  The district may issue bonds, notes, or other
 obligations payable wholly or partly from ad valorem taxes,
 assessments, impact fees, revenue, contract payments, grants, or
 other district money, or any combination of those sources of money,
 to pay for any authorized district purpose.
 Sec. 3973.0505.  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 annual ad valorem tax, without limit as to rate or amount,
 for each year that 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. 3973.0506.  BONDS FOR ROAD PROJECTS. At the time of
 issuance, the total principal amount of bonds or other obligations
 issued or incurred to finance road projects and payable from ad
 valorem taxes may not exceed one-fourth of the assessed value of the
 real property in the district.
 SUBCHAPTER F. SALES AND USE TAX
 Sec. 3973.0601.  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. 3973.0602.  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 Tarkington Management District No. 1 of Liberty County at a
 rate not to exceed ____ percent" (insert rate of one or more
 increments of one-eighth of one percent).
 Sec. 3973.0603.  SALES AND USE TAX RATE. (a)  On or after
 the date the results are declared of an election held under Section
 3973.0602, 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 3973.0602, 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 3973.0602; 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. 3973.0604.  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 exclude the
 annexed territory from the district, if the district has no
 outstanding debt or other obligations payable from any source.
 Sec. 3973.0605.  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. 3973.0606.  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. 3973.0607.  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 3973.0602 before the district may subsequently impose
 the tax.
 SUBCHAPTER G.  DEFINED AREAS
 Sec. 3973.0701.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
 DESIGNATED PROPERTY. The district may define areas or designate
 certain property of the district to pay for improvements,
 facilities, or services that primarily benefit that area or
 property and do not generally and directly benefit the district as a
 whole.
 Sec. 3973.0702.  PROCEDURE FOR ELECTION. (a)  Before the
 district may impose an ad valorem tax or issue bonds payable from ad
 valorem taxes of the defined area or designated property, the board
 shall hold an election in the defined area or in the designated
 property only.
 (b)  The board may submit the issues to the voters on the same
 ballot to be used in another election.
 Sec. 3973.0703.  DECLARING RESULT AND ISSUING ORDER.
 (a)  If a majority of the voters voting at the election approve the
 proposition or propositions, the board shall declare the results
 and, by order, shall establish the defined area and describe it by
 metes and bounds or designate the specific property.
 (b)  A court may not review the board's order except on the
 ground of fraud, palpable error, or arbitrary and confiscatory
 abuse of discretion.
 Sec. 3973.0704.  TAXES FOR SERVICES, IMPROVEMENTS, AND
 FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
 approval and adoption of the order described by Section 3973.0703,
 the district may apply separately, differently, equitably, and
 specifically its taxing power and lien authority to the defined
 area or designated property to provide money to construct,
 administer, maintain, and operate services, improvements, and
 facilities that primarily benefit the defined area or designated
 property.
 Sec. 3973.0705.  ISSUANCE OF BONDS FOR DEFINED AREA OR
 DESIGNATED PROPERTY. After the order under Section 3973.0703 is
 adopted, the district may issue bonds to provide for any land,
 improvements, facilities, plants, equipment, and appliances for
 the defined area or designated property.
 Sec. 3973.0706.  ADDITION OR EXCLUSION OF LAND IN DEFINED
 AREA. The district may add or exclude land from the defined areas
 in the same manner the district may add or exclude land from the
 district.
 SECTION 2.  The Tarkington Management District No. 1 of
 Liberty County initially includes all territory contained in the
 following area:
 807.65 acres of land, situated in the Hugh Means Survey, Abstract
 78, Liberty County, Texas, and being a part of that certain 1846.69
 acre tract described in a Deed from Southland Timberlands V, L.P. to
 Tarkington Realty, Ltd., recorded in Liberty County Clerk's File
 2006008680, said 807.65 acres being more particularly described as
 follows:
 BEGINNING at a 3 inch by 3 inch concrete monument stamped "Kirby NWc
 Hugh Means" found for the Northwest corner of the herein described
 tract at the Northwest corner of the Hugh Means Survey, Abstract 78,
 and the Northwest corner of said 1846.69 acre tract;
 THENCE North 88 deg. 01 min. 32 sec. East, along the North line of
 the Means Survey, being the North line of said 1846.69 acre tract, a
 distance of 33.30 feet to a 6 inch by 6 inch concrete monument found
 at the Southwest corner of the I. L. Hanson Survey, Abstract 282;
 THENCE North 87 deg. 28 min. 03 sec. East, along the common line of
 the Means Survey and the Hanson Survey, being the North line of said
 1846.69 acre tract and the South line of the Alvin David Stetson
 tract recorded in Clerk's File 2015023380, a distance of 3442.50
 feet to a concrete monument stamped "Kirby 3-166" found at the
 Southeast corner of the Hanson Survey and the Southwest corner of
 the John R. Faulk Survey, Abstract 34;
 THENCE North 86 deg. 55 min. 34 sec. East, along the common lines of
 the Means Survey and the Faulk Survey, being the North line of said
 1846.69 acre tract and the South line of the Jorge Lopez tract
 described in Clerk's File 2007014457, a distance of 1787.22 feet to
 a 3/4 inch iron rod found for the Northeast corner of the herein
 described tract at the Northeast corner of said 1846.69 acre tract,
 said point being in the West right of way line of State Highway 321
 (100.0 feet wide at this point);
 THENCE South 22 deg. 01 min. 29 sec. East, along the West
 right-of-way line of State Highway 321 and the East line of said
 1846.69 acre tract, a distance of 2084.38 feet to a concrete
 monument found at the P.C. of a curve to the left;
 THENCE along the West right-of-way line of State Highway 321
 (right-of-way varies) and the East line of said 1846.69 acre tract,
 following said curve to the left having a Radius of 5779.59 feet,
 Central Angle of a 01 deg. 35 min. 23 sec., Chord Bearing and
 Distance of South 22 deg. 51 min. 20 sec. East - 160.35 feet, for an
 arc distance of 160.36 feet to a concrete monument found at the P.T.
 of said curve;
 THENCE South 18 deg. 29 min. East, along the West right-of-way line
 of State Highway 321 and the East line of said 1846.69 acre tract, a
 distance of 101.28 feet to a concrete monument found at the P.C. of
 a curve left;
 THENCE along the West right-of-way line of State Highway 21
 (right-of-way varies) and the East line of said 1846.69 acre tract,
 following said curve to the left having a Radius of 5789.59 feet,
 Central Angle of 10 deg. 49 min. 44 sec., Chord Bearing and a
 Distance of South 30 deg. 03 min. 47 sec. East - 1092.60 feet, for an
 arc distance of 1094.23 feet to a concrete monument found at the
 P.T. of said curve;
 THENCE South 35 deg. 28 min. 53 sec. East, along the West
 right-of-way line of State Highway 321 (right-of-way 110.0 feet
 wide at this point) and the East line of said 1846.69 acre tract, a
 distance of 2708.35 feet to a 1/2 inch iron rod found for the
 Southeast corner of the herein described tract at the upper
 Southeast corner of said 1846.69 acre tract, the Northeast corner
 of a 6.87 acre Save and Except Tract described in the a deed to
 Southland Timberlands V, L.P. recorded in Clerk's File 2003009246;
 THENCE South 87 deg. 23 min. 32 sec. West, along the North line of
 said 6.87 acre Save and Except Tract, a distance of 3334.49 feet to
 a fence post found at the Northwest corner of said 6.87 acre tract
 and the upper Northeast corner of a 638.36 acre tract described in a
 deed to Roli Holdings, L.P. recorded in Clerk's File 2013010569;
 THENCE South 87 deg. 23 min. 05 sec. West, along the North line of
 said 638.36 acre tract, at 4683.36 feet pass a 5/8 inch iron rod
 capped "RPLS 5815" found, and continue for a total distance of
 4684.17 feet to a point marking the Southwest corner of the herein
 described tract at the Northwest corner of said 638.36 acre tract,
 said point being in the West line of the Means Survey, the East line
 of the H.& T.C. R.R. Company Survey No. 150, Abstract 833, the West
 lineof said 1846.69 acre tract, and the East line of the Joseph H.
 Ceaser, Jr. tract describe in Clerk's File 2007008678;
 THENCE North 03 deg. 40 min. 53 sec. West, along the common line of
 the Means Survey and the H.&T.C. R.R. Company Survey No. 150, being
 the West line of said 1846.69 acre tract and the East line of the
 Ceaser tract, a distance of 1305.65 feet to a 3 inch by 3 inch
 concrete monument stamped "Kirby SEc H&TC WL H Means" found at the
 Northeast corner of the H.&T.C. R.R. Company Survey No. 150, the
 Southeast corner of the H.& T.C. R.R. Company Survey No. 149,
 Abstract 232, the Northeast corner of the Ceaser tract, and the
 Southeast corner of the William B. Krizak tract described in
 Clerk's File 2009017836;
 THENCE North 02 deg. 11 min. 16 sec. West, along the common line of
 the Means Survey and the H.&T.C. R.R. Company Survey No. 149, being
 the West line of said 1846.69 acre tract and the East line of the
 Krizak tract, the Heriberto Cisneros tract described in Clerk's
 File 2009009858, The Heriberto Cisneros tract described in Clerk's
 File 2017006032, and the Johnnie Hooper tract described in Clerk's
 File 2016002265, at 2138.84 feet pass a 1/2 inch iron rod found at
 the Northeast corner of the Hooper tract and the Southeast corner of
 a tract described in Clerk's File 2018001388, and continue along
 the East line of said tract and tracts described in Clerk's File
 2014013993, Clerk's File 2013003296, Clerk's File 2013010371,
 Clerk's File 2012002326; Clerk's File 2016007673; Clerk's File
 2015007509; Clerk's File 2012012985; Clerk's File 2009007977, and
 Clerk's File 2010011389 for a total distance of 4143.56 feet to the
 PLACE OF BEGINNING and containing 807.65 acres of land.
 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, 2019.
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