Texas 2021 - 87th Regular

Texas House Bill HB4612 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4612
	1	+	By: Vasut (Senate Sponsor - Taylor) H.B. No. 4612
	2	+	(In the Senate - Received from the House May 10, 2021;
	3	+	May 10, 2021, read first time and referred to Committee on Local
	4	+	Government; May 20, 2021, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 9, Nays 0;
	6	+	May 20, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 4612 By: Eckhardt
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the creation of the Brazoria County Management District
6	14		No. 2; providing authority to issue bonds; providing authority to
7	15		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 3945 to read as follows:
11	19		CHAPTER 3945. BRAZORIA COUNTY MANAGEMENT DISTRICT NO. 2
12	20		SUBCHAPTER A. GENERAL PROVISIONS
13	21		Sec. 3945.0101. DEFINITIONS. In this chapter:
14	22		(1) "Board" means the district's board of directors.
15	23		(2) "County" means Brazoria County.
16	24		(3) "Director" means a board member.
17	25		(4) "District" means the Brazoria County Management
18	26		District No. 2.
19	27		Sec. 3945.0102. CREATION AND NATURE OF DISTRICT; IMMUNITY.
20	28		(a) The Brazoria County Management District No. 2 is a special
21	29		district created under Section 59, Article XVI, Texas Constitution.
22	30		(b) The district is a governmental unit, as provided by
23	31		Section 375.004, Local Government Code.
24	32		(c) This chapter does not waive any governmental or
25	33		sovereign immunity from suit, liability, or judgment that would
26	34		otherwise apply to the district.
27	35		Sec. 3945.0103. PURPOSE; DECLARATION OF INTENT. (a) The
28	36		creation of the district is essential to accomplish the purposes of
29	37		Sections 52 and 52-a, Article III, and Section 59, Article XVI,
30	38		Texas Constitution, and other public purposes stated in this
31	39		chapter.
32	40		(b) By creating the district, the legislature has
33	41		established a program to accomplish the public purposes set out in
34	42		Sections 52 and 52-a, Article III, Texas Constitution.
35	43		(c) 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		(d) This chapter and the creation of the district may not be
41	49		interpreted to relieve the county or a municipality 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 county or municipal
45	53		services provided in the district.
46	54		Sec. 3945.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
47	55		(a) All land and other property included in the district will
48	56		benefit from the improvements and services to be provided by the
49	57		district under powers conferred by Sections 52 and 52-a, Article
50	58		III, and Section 59, Article XVI, Texas Constitution, and other
51	59		powers granted under this chapter.
52	60		(b) The district is created to serve a public use and
53	61		benefit.
54	62		(c) The creation of the district is in the public interest
55	63		and is essential to further the public purposes of:
56	64		(1) developing and diversifying the economy of the
57	65		state;
58	66		(2) eliminating unemployment and underemployment; and
59	67		(3) developing or expanding transportation and
60	68		commerce.
61	69		(d) The district will:
62	70		(1) promote the health, safety, and general welfare of
63	71		residents, employers, potential employees, employees, visitors,
64	72		and consumers in the district, and of the public;
65	73		(2) provide needed funding for the district to
66	74		preserve, maintain, and enhance the economic health and vitality of
67	75		the district territory as a community and business center;
68	76		(3) promote the health, safety, welfare, and enjoyment
69	77		of the public by providing pedestrian ways, transit facilities,
70	78		parking facilities, and public art objects, and by landscaping and
71	79		developing certain areas in the district, which are necessary for
72	80		the restoration, preservation, and enhancement of scenic beauty;
73	81		and
74	82		(4) provide for water, wastewater, drainage, road, and
75	83		recreational facilities for the district.
76	84		(e) Pedestrian ways along or across a street, whether at
77	85		grade or above or below the surface, and street lighting, street
78	86		landscaping, parking, and street art objects are parts of and
79	87		necessary components of a street and are considered to be a street
80	88		or road improvement.
81	89		(f) The district will not act as the agent or
82	90		instrumentality of any private interest even though the district
83	91		will benefit many private interests as well as the public.
84	92		Sec. 3945.0105. INITIAL DISTRICT TERRITORY. (a) The
85	93		district is initially composed of the territory described by
86	94		Section 2 of the Act enacting this chapter.
87	95		(b) The boundaries and field notes contained in Section 2 of
88	96		the Act enacting this chapter form a closure. A mistake in the
89	97		field notes or in copying the field notes in the legislative process
90	98		does not affect the district's:
91	99		(1) organization, existence, or validity;
92	100		(2) right to issue any type of bonds for the purposes
93	101		for which the district is created or to pay the principal of and
94	102		interest on the bonds;
95	103		(3) right to impose or collect an assessment or tax; or
96	104		(4) legality or operation.
97	105		Sec. 3945.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
98	106		All or any part of the area of the district is eligible to be
99	107		included in one or more of the following:
100	108		(1) a tax increment reinvestment zone created under
101	109		Chapter 311, Tax Code;
102	110		(2) a tax abatement reinvestment zone created under
103	111		Chapter 312, Tax Code;
104	112		(3) an enterprise zone created under Chapter 2303,
105	113		Government Code; or
106	114		(4) an industrial district created under Chapter 42,
107	115		Local Government Code.
108	116		Sec. 3945.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
109	117		DISTRICTS LAW. Except as otherwise provided by this chapter,
110	118		Chapter 375, Local Government Code, applies to the district.
111	119		Sec. 3945.0108. CONSTRUCTION OF CHAPTER. This chapter
112	120		shall be liberally construed in conformity with the findings and
113	121		purposes stated in this chapter.
114	122		Sec. 3945.0109. CONFLICTS OF LAW. This chapter prevails
115	123		over any provision of general law, including a provision of Chapter
116	124		375, Local Government Code, or Chapter 49, Water Code, that is in
117	125		conflict or inconsistent with this chapter.
118	126		SUBCHAPTER B. BOARD OF DIRECTORS
119	127		Sec. 3945.0201. GOVERNING BODY; TERMS. (a) The district is
120	128		governed by a board of five directors elected or appointed as
121	129		provided by this chapter and Subchapter D, Chapter 49, Water Code.
122	130		(b) Except as provided by Section 3945.0203, directors
123	131		serve staggered four-year terms.
124	132		Sec. 3945.0202. COMPENSATION. A director is entitled to
125	133		receive fees of office and reimbursement for actual expenses as
126	134		provided by Section 49.060, Water Code. Sections 375.069 and
127	135		375.070, Local Government Code, do not apply to the board.
128	136		Sec. 3945.0203. TEMPORARY DIRECTORS. (a) On or after the
129	137		effective date of the Act creating this chapter, the owner or owners
130	138		of a majority of the assessed value of the real property in the
131	139		district according to the most recent certified tax appraisal roll
132	140		for the county may submit a petition to the Texas Commission on
133	141		Environmental Quality requesting that the commission appoint as
134	142		temporary directors the five persons named in the petition. The
135	143		commission shall appoint as temporary directors the five persons
136	144		named in the petition.
137	145		(b) The temporary or successor temporary directors shall
138	146		hold an election to elect five permanent directors as provided by
139	147		Section 49.102, Water Code.
140	148		(c) Temporary directors serve until the earlier of:
141	149		(1) the date permanent directors are elected under
142	150		Subsection (b); or
143	151		(2) the fourth anniversary of the effective date of
144	152		the Act creating this chapter.
145	153		(d) If permanent directors have not been elected under
146	154		Subsection (b) and the terms of the temporary directors have
147	155		expired, successor temporary directors shall be appointed or
148	156		reappointed as provided by Subsection (e) to serve terms that
149	157		expire on the earlier of:
150	158		(1) the date permanent directors are elected under
151	159		Subsection (b); or
152	160		(2) the fourth anniversary of the date of the
153	161		appointment or reappointment.
154	162		(e) If Subsection (d) applies, the owner or owners of a
155	163		majority of the assessed value of the real property in the district
156	164		according to the most recent certified tax appraisal roll for the
157	165		county may submit a petition to the Texas Commission on
158	166		Environmental Quality requesting that the commission appoint as
159	167		successor temporary directors the five persons named in the
160	168		petition. The commission shall appoint as successor temporary
161	169		directors the five persons named in the petition.
162	170		Sec. 3945.0204. DISQUALIFICATION OF DIRECTORS. Section
163	171		49.052, Water Code, applies to the members of the board.
164	172		SUBCHAPTER C. POWERS AND DUTIES
165	173		Sec. 3945.0301. GENERAL POWERS AND DUTIES. The district
166	174		has the powers and duties necessary to accomplish the purposes for
167	175		which the district is created.
168	176		Sec. 3945.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
169	177		The district, using any money available to the district for the
170	178		purpose, may provide, design, construct, acquire, improve,
171	179		relocate, operate, maintain, or finance an improvement project or
172	180		service authorized under this chapter or Chapter 375, Local
173	181		Government Code.
174	182		(b) The district may contract with a governmental or private
175	183		entity to carry out an action under Subsection (a).
176	184		(c) The implementation of a district project or service is a
177	185		governmental function or service for the purposes of Chapter 791,
178	186		Government Code.
179	187		Sec. 3945.0303. RECREATIONAL FACILITIES. The district may
180	188		develop or finance recreational facilities as authorized by Chapter
181	189		375, Local Government Code, Sections 52 and 52-a, Article III,
182	190		Texas Constitution, Section 59, Article XVI, Texas Constitution,
183	191		and any other law that applies to the district.
184	192		Sec. 3945.0304. AUTHORITY FOR ROAD PROJECTS. Under Section
185	193		52, Article III, Texas Constitution, the district may own, operate,
186	194		maintain, design, acquire, construct, finance, issue bonds, notes,
187	195		or other obligations for, improve, and convey to this state, a
188	196		county, or a municipality for ownership, operation, and maintenance
189	197		macadamized, graveled, or paved roads or improvements, including
190	198		storm drainage, in aid of those roads.
191	199		Sec. 3945.0305. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
192	200		(a) The district may convey a road project authorized by Section
193	201		3945.0304 to:
194	202		(1) a municipality or county that will operate and
195	203		maintain the road if the municipality or county has approved the
196	204		plans and specifications of the road project; or
197	205		(2) the state if the state will operate and maintain
198	206		the road and the Texas Transportation Commission has approved the
199	207		plans and specifications of the road project.
200	208		(b) Except as provided by Subsection (c), the district shall
201	209		operate and maintain a road project authorized by Section 3945.0304
202	210		that the district implements and does not convey to a municipality,
203	211		a county, or this state under Subsection (a).
204	212		(c) The district may agree in writing with a municipality, a
205	213		county, or this state to assign operation and maintenance duties to
206	214		the district, the municipality, the county, or this state in a
207	215		manner other than the manner described in Subsections (a) and (b).
208	216		Sec. 3945.0306. NONPROFIT CORPORATION. (a) The board by
209	217		resolution may authorize the creation of a nonprofit corporation to
210	218		assist and act for the district in implementing a project or
211	219		providing a service authorized by this chapter.
212	220		(b) The nonprofit corporation:
213	221		(1) has each power of and is considered to be a local
214	222		government corporation created under Subchapter D, Chapter 431,
215	223		Transportation Code; and
216	224		(2) may implement any project and provide any service
217	225		authorized by this chapter.
218	226		(c) The board shall appoint the board of directors of the
219	227		nonprofit corporation. The board of directors of the nonprofit
220	228		corporation shall serve in the same manner as the board of directors
221	229		of a local government corporation created under Subchapter D,
222	230		Chapter 431, Transportation Code, except that a board member is not
223	231		required to reside in the district.
224	232		Sec. 3945.0307. LAW ENFORCEMENT SERVICES. Section 49.216,
225	233		Water Code, applies to the district.
226	234		Sec. 3945.0308. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
227	235		The district may join and pay dues to a charitable or nonprofit
228	236		organization that performs a service or provides an activity
229	237		consistent with the furtherance of a district purpose.
230	238		Sec. 3945.0309. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
231	239		district may engage in activities that accomplish the economic
232	240		development purposes of the district.
233	241		(b) The district may establish and provide for the
234	242		administration of one or more programs to promote state or local
235	243		economic development and to stimulate business and commercial
236	244		activity in the district, including programs to:
237	245		(1) make loans and grants of public money; and
238	246		(2) provide district personnel and services.
239	247		(c) The district may create economic development programs
240	248		and exercise the economic development powers provided to
241	249		municipalities by:
242	250		(1) Chapter 380, Local Government Code; and
243	251		(2) Subchapter A, Chapter 1509, Government Code.
244	252		Sec. 3945.0310. 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. 3945.0311. 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. 3945.0312. 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. 3945.0313. 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 in the manner provided by
271	279		Subchapter J, Chapter 49, Water Code. Section 375.044(b), Local
272	280		Government 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 3945.0602 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 3945.0602 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. 3945.0314. 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. 3945.0315. 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. 3945.0316. NO EMINENT DOMAIN POWER. The district may
316	324		not exercise the power of eminent domain.
317	325		SUBCHAPTER D. ASSESSMENTS
318	326		Sec. 3945.0401. 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) A petition filed under Subsection (a) must be signed by
324	332		the owners of a majority of the assessed value of real property in
325	333		the district subject to assessment according to the most recent
326	334		certified tax appraisal roll for the county.
327	335		Sec. 3945.0402. 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. 3945.0403. 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:
340	348		(1) are a first and prior lien against the property
341	349		assessed;
342	350		(2) are superior to any other lien or claim other than
343	351		a lien or claim for county, school district, or municipal ad valorem
344	352		taxes; and
345	353		(3) are the personal liability of and a charge against
346	354		the 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. 3945.0501. 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. 3945.0502. OPERATION AND MAINTENANCE TAX. (a) If
362	370		authorized by a majority of the district voters voting at an
363	371		election under Section 3945.0501, 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. 3945.0503. 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. 3945.0504. 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. 3945.0505. BONDS SECURED BY AD VALOREM TAXES;
394	402		ELECTIONS. (a) If authorized at an election under Section
395	403		3945.0501, 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. 3945.0506. 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. 3945.0601. 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. 3945.0602. 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 Brazoria County Management District No. 2 at a rate not to
436	444		exceed ____ percent" (insert rate of one or more increments of
437	445		one-eighth of one percent).
438	446		Sec. 3945.0603. 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		3945.0602, 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 3945.0602, 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 3945.0602; 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. 3945.0604. 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. 3945.0605. 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. 3945.0606. 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. 3945.0607. 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 3945.0602 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 3945.0604(c)(2).
505	513		SUBCHAPTER I. DISSOLUTION
506	514		Sec. 3945.0901. DISSOLUTION. (a) The board shall dissolve
507	515		the district on written petition filed with the board by the owners
508	516		of at least two-thirds of the assessed value of the property subject
509	517		to assessment or taxation by the district based on the most recent
510	518		certified county property tax rolls.
511	519		(b) The board by majority vote may dissolve the district at
512	520		any time.
513	521		(c) The district may not be dissolved by its board under
514	522		Subsection (a) or (b) if the district:
515	523		(1) has any outstanding bonded indebtedness until that
516	524		bonded indebtedness has been repaid or defeased in accordance with
517	525		the order or resolution authorizing the issuance of the bonds;
518	526		(2) has a contractual obligation to pay money until
519	527		that obligation has been fully paid in accordance with the
520	528		contract; or
521	529		(3) owns, operates, or maintains public works,
522	530		facilities, or improvements unless the district contracts with
523	531		another person for the ownership, operation, or maintenance of the
524	532		public works, facilities, or improvements.
525	533		(d) Sections 375.261, 375.262, and 375.264, Local
526	534		Government Code, do not apply to the district.
527	535		SECTION 2. The Brazoria County Management District No. 2
528	536		initially includes all the territory contained in the following
529	537		area:
530	538		TRACT 1:
531	539		All that certain 160.92 acres tract of land, being a part of
532	540		that certain called 264.533 Acre Tract containing Lots 10, 11, and
533	541		19 of the Bogart and Taylor Subdivision of the West 1/2 of the
534	542		W.D.C. Hall League, Abstract 69, Brazoria County, Texas, a Plat of
535	543		record in Volume 16, at Pages 518 and 519 of the Deed Records of
536	544		Brazoria County, Texas (B.C.D.R.), and being that 264.533 Acre
537	545		Tract described in a deed from Buffet Inc. to Tehama Communities,
538	546		LLP recorded in Clerk File (C.F.) 2005-069871, said 160.92 acres
539	547		tract of land being more particularly described as follows:
540	548		BEGINNING at a 4 -inch square concrete monument found at the
541	549		Northeast corner of said Lot 10, said concrete monument being the
542	550		same described in that certain deed to Claud B. Hamill recorded in
543	551		Volume 1121, at Page 386 of the B.C.D.R., being also the Northwest
544	552		corner of Lot 9 of said Bogart and Taylor Subdivision;
545	553		THENCE South 03 degrees 02 minutes 53 seconds East, 2,652.55
546	554		feet coincident with the West line of said Claud B. Hamill Tract,
547	555		being also the East line of Lot 10 of said Bogart and Taylor
548	556		Subdivision, point also being the Southeast corner of the
549	557		herein tract;
550	558		THENCE South 86 degrees 57 minutes 14 seconds West, 2,642.69
551	559		feet coincident with the North lines of Lot 18 and 19, being also
552	560		the South line of Lots 10 and 11 of said Bogart and Taylor
553	561		Subdivision to a point for corner, from which a 1/2-inch iron
554	562		rod set for reference bears North 76 degrees 03 minutes 10 seconds
555	563		West, 18.35 feet, and a 3/4 inch iron pipe found for reference bears
556	564		North 01 degrees 24 minutes 37 seconds East, 23.52 feet;
557	565		THENCE North 03 degrees 02 minutes 53 seconds West, 2,652.55
558	566		feet coincident with the West line of said Lot 11 to a 1-1/4 inch
559	567		iron pipe found for corner;
560	568		THENCE North 86 degrees 57 minutes 14 seconds East, 2,642.69
561	569		feet coincident with the North lines of said Lots 10 and 11, along
562	570		the South line of a platted road to the POINT OF BEGINNING,
563	571		containing 160.92 acres of land, more or less.
564	572		TRACT 2:
565	573		A survey of 42.95 Acres out of Lot 9 of the Bogart and Taylor
566	574		subdivision of the West 1/2 of the W.D.C. Hall League, Abstract 69
567	575		according to the Plat recorded in Volume 1, Page 64 of the Map
568	576		Records of Brazoria County, Texas (B.C.M.R), and being more
569	577		particularly described by metes and bounds as follows:
570	578		BEGINNING at a set 1/2 inch iron rod with a cap in the
571	579		Northwest corner of Lot 9 set on the South right-of way line of
572	580		Adams Road / County Road 841, a public road, presently unopened, for
573	581		the Northwest corner of this tract and the POINT OF BEGINNING;
574	582		THENCE North 86 degrees 57 minutes 02 seconds East, along the
575	583		South line of said public road, a distance of 700.55 feet for the
576	584		Northeast corner of this tract;
577	585		THENCE South 03 degrees 00 minutes 50 seconds East, a
578	586		distance of 2,657.47 feet for the Southeast corner of this tract,
579	587		said point being in the South lines of Lot 9;
580	588		THENCE South 86 degrees 57 minutes 14 seconds West, along the
581	589		centerline of Ditch 316-00-00 as recorded in Iowa Colony Drainage
582	590		District No. 5, a distance of 707.48 feet for the Southwest corner
583	591		of this tract;
584	592		THENCE North 02 degrees 51 minutes 52 seconds West, along the
585	593		West lines of Lot 9, same being the East line of that tract of land
586	594		(Lots 10, 11, and 19, Bogart and Taylor) as described by deed
587	595		recorded in B.C.C.F. No. 85030634, a distance of 2,657.44 feet to
588	596		the POINT OF BEGINNING and containing 42.95 acres of land, more or
589	597		less, and being a part of the same property described in the deed
590	598		"Tract C" as described in the Clerk 's File No. 2008-037928 of
591	599		Brazoria County, Texas, to which deed and the record thereof
592	600		reference is here made for all appropriate purposes.
593	601		SECTION 3. (a) The legal notice of the intention to
594	602		introduce this Act, setting forth the general substance of this
595	603		Act, has been published as provided by law, and the notice and a
596	604		copy of this Act have been furnished to all persons, agencies,
597	605		officials, or entities to which they are required to be furnished
598	606		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
599	607		Government Code.
600	608		(b) The governor, one of the required recipients, has
601	609		submitted the notice and Act to the Texas Commission on
602	610		Environmental Quality.
603	611		(c) The Texas Commission on Environmental Quality has filed
604	612		its recommendations relating to this Act with the governor,
605	613		lieutenant governor, and speaker of the house of representatives
606	614		within the required time.
607	615		(d) All requirements of the constitution and laws of this
608	616		state and the rules and procedures of the legislature with respect
609	617		to the notice, introduction, and passage of this Act have been
610	618		fulfilled and accomplished.
611	619		SECTION 4. This Act takes effect immediately if it receives
612	620		a vote of two-thirds of all the members elected to each house, as
613	621		provided by Section 39, Article III, Texas Constitution. If this
614	622		Act does not receive the vote necessary for immediate effect, this
615	623		Act takes effect September 1, 2021.
616		-	______________________________ ______________________________
617		-	President of the Senate Speaker of the House
618		-	I certify that H.B. No. 4612 was passed by the House on May 7,
619		-	2021, by the following vote: Yeas 116, Nays 26, 1 present, not
620		-	voting; and that the House concurred in Senate amendments to H.B.
621		-	No. 4612 on May 28, 2021, by the following vote: Yeas 92, Nays 53,
622		-	3 present, not voting.
623		-	______________________________
624		-	Chief Clerk of the House
625		-	I certify that H.B. No. 4612 was passed by the Senate, with
626		-	amendments, on May 27, 2021, by the following vote: Yeas 30, Nays
627		-	1.
628		-	______________________________
629		-	Secretary of the Senate
630		-	APPROVED: __________________
631		-	Date
632		-	__________________
633		-	Governor
	624	+	* * * * *