Bill Text: TX HB4635 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the creation of the Orchard Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2019-06-14 - Effective immediately [HB4635 Detail]
Download: Texas-2019-HB4635-Enrolled.html
| H.B. No. 4635 | ||
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| relating to the creation of the Orchard Management District No. 1; | ||
| providing authority to issue bonds; providing authority to impose | ||
| assessments, fees, and taxes. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle C, Title 4, Special District Local Laws | ||
| Code, is amended by adding Chapter 3792 to read as follows: | ||
| CHAPTER 3792. ORCHARD MANAGEMENT DISTRICT NO. 1 | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 3792.0101. DEFINITIONS. In this chapter: | ||
| (1) "Board" means the district's board of directors. | ||
| (2) "Commission" means the Texas Commission on | ||
| Environmental Quality. | ||
| (3) "County" means Fort Bend County | ||
| . | ||
| (4) "Director" means a board member. | ||
| (5) "District" means the Orchard Management District | ||
| No. 1. | ||
| Sec. 3792.0102. CREATION AND NATURE OF DISTRICT; IMMUNITY. | ||
| (a) The district is a special district created under Section 59, | ||
| Article XVI, Texas Constitution. | ||
| (b) The district is a governmental unit, as provided by | ||
| Section 375.004, Local Government Code. | ||
| (c) This chapter does not waive any governmental or | ||
| sovereign immunity from suit, liability, or judgment that would | ||
| otherwise apply to the district. | ||
| Sec. 3792.0103. 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. | ||
| (b) By creating the district, the legislature has | ||
| established a program to accomplish the public purposes set out in | ||
| Sections 52 and 52-a, Article III, Texas Constitution. | ||
| (c) 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. | ||
| (d) This chapter and the creation of the district may not be | ||
| interpreted to relieve the county or a municipality 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 or municipal | ||
| services provided in the district. | ||
| Sec. 3792.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. | ||
| (a) 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. | ||
| (b) The district is created to serve a public use and | ||
| benefit. | ||
| (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, road facilities, | ||
| transit facilities, parking facilities, rail facilities, | ||
| recreational facilities, and public art objects 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, and drainage | ||
| 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. 3792.0105. 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. 3792.0106. 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. 3792.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT | ||
| DISTRICTS LAW. Except as otherwise provided by this chapter, | ||
| Chapter 375, Local Government Code, applies to the district. | ||
| Sec. 3792.0108. LIBERAL CONSTRUCTION OF CHAPTER. This | ||
| chapter shall be liberally construed in conformity with the | ||
| findings and purposes stated in this chapter. | ||
| Sec. 3792.0109. 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. 3792.0201. 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 3792.0203, directors | ||
| serve staggered four-year terms. | ||
| Sec. 3792.0202. 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. 3792.0203. TEMPORARY DIRECTORS. (a) On or after the | ||
| effective date of the Act enacting this chapter, the owner or owners | ||
| of a majority of the assessed value of the real property in the | ||
| district according to the most recent certified tax appraisal roll | ||
| for the county may submit a petition to the commission requesting | ||
| that the commission appoint as temporary directors the five persons | ||
| named in the petition. The commission shall appoint as temporary | ||
| directors the five persons named in the petition. | ||
| (b) The 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 enacting 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 commission requesting that the | ||
| commission appoint as successor temporary directors the five | ||
| persons named in the petition. The commission shall appoint as | ||
| successor temporary directors the five persons named in the | ||
| petition. | ||
| Sec. 3792.0204. DISQUALIFICATION OF DIRECTORS. Section | ||
| 49.052, Water Code, applies to the members of the board. | ||
| SUBCHAPTER C. POWERS AND DUTIES | ||
| Sec. 3792.0301. GENERAL POWERS AND DUTIES. The district | ||
| has the powers and duties necessary to accomplish the purposes for | ||
| which the district is created. | ||
| Sec. 3792.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) | ||
| The district, using any money available to the district for the | ||
| purpose, may provide, design, construct, acquire, improve, | ||
| relocate, operate, maintain, or finance an improvement project or | ||
| service authorized under this chapter or Chapter 375, Local | ||
| Government Code. | ||
| (b) The district may contract with a governmental or private | ||
| entity to carry out an action under Subsection (a). | ||
| (c) The implementation of a district project or service is a | ||
| governmental function or service for the purposes of Chapter 791, | ||
| Government Code. | ||
| Sec. 3792.0303. RECREATIONAL FACILITIES. The district may | ||
| develop or finance recreational facilities as authorized by Chapter | ||
| 375, Local Government Code, Sections 52 and 52-a, Article III, | ||
| Texas Constitution, Section 59, Article XVI, Texas Constitution, | ||
| and any other law that applies to the district. | ||
| Sec. 3792.0304. 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. 3792.0305. CONVEYANCE AND APPROVAL OF ROAD PROJECT. | ||
| (a) The district may convey a road project authorized by Section | ||
| 3792.0304 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 3792.0304 | ||
| 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. 3792.0306. RAIL FACILITIES. In addition to the powers | ||
| granted under Section 375.0921(b), Local Government Code, the | ||
| district may construct, acquire, improve, maintain, finance, and | ||
| operate rail facilities and improvements in aid of those facilities | ||
| for the transport of freight and other cargo. | ||
| Sec. 3792.0307. 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. 3792.0308. LAW ENFORCEMENT SERVICES. Section 49.216, | ||
| Water Code, applies to the district. | ||
| Sec. 3792.0309. 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. 3792.0310. ECONOMIC DEVELOPMENT PROGRAMS. (a) The | ||
| district may engage in activities that accomplish the economic | ||
| development purposes of the district. | ||
| (b) The district may establish and provide for the | ||
| administration of one or more programs to promote state or local | ||
| economic development and to stimulate business and commercial | ||
| activity in the district, including programs to: | ||
| (1) make loans and grants of public money; and | ||
| (2) provide district personnel and services. | ||
| (c) The district may create economic development programs | ||
| and exercise the economic development powers that: | ||
| (1) Chapter 380, Local Government Code, provides to a | ||
| municipality; and | ||
| (2) Subchapter A, Chapter 1509, Government Code, | ||
| provides to a municipality. | ||
| Sec. 3792.0311. STRATEGIC PARTNERSHIP AGREEMENT. The | ||
| district may negotiate and enter into a written strategic | ||
| partnership agreement with a municipality under Section 43.0751, | ||
| Local Government Code. | ||
| Sec. 3792.0312. REGIONAL PARTICIPATION AGREEMENT. The | ||
| district may negotiate and enter into a written regional | ||
| participation agreement with a municipality under Section 43.0754, | ||
| Local Government Code. | ||
| Sec. 3792.0313. 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. 3792.0314. ADDING OR EXCLUDING LAND. (a) The district | ||
| may add land as provided by Subchapter J, Chapter 49, Water Code. | ||
| (b) The district may exclude land as provided by Subchapter | ||
| J, Chapter 49, Water Code. Section 375.044(b), Local Government | ||
| Code, does not apply to the district. | ||
| (c) The district may include and exclude land as provided by | ||
| Sections 54.739-54.747, Water Code. A reference in those sections | ||
| to a "tax" means an ad valorem tax for the purposes of this | ||
| subsection. | ||
| (d) If the district adopts a sales and use tax authorized at | ||
| an election held under Section 3792.0602 and subsequently includes | ||
| new territory in the district under this section, the district: | ||
| (1) is not required to hold another election to | ||
| approve the imposition of the sales and use tax in the included | ||
| territory; and | ||
| (2) shall impose the sales and use tax in the included | ||
| territory as provided by Chapter 321, Tax Code. | ||
| (e) If the district adopts a sales and use tax authorized at | ||
| an election held under Section 3792.0602 and subsequently excludes | ||
| territory in the district under this section, the sales and use tax | ||
| is inapplicable to the excluded territory, as provided by Chapter | ||
| 321, Tax Code, but is applicable to the territory remaining in the | ||
| district. | ||
| Sec. 3792.0315. 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. 3792.0316. AUDIT EXEMPTION. (a) The district may | ||
| elect to complete an annual financial report in lieu of an annual | ||
| audit under Section 375.096(a)(6), Local Government Code, if: | ||
| (1) the district had no bonds or other long-term (more | ||
| than one year) liabilities outstanding during the fiscal period; | ||
| (2) the district did not have gross receipts from | ||
| operations, loans, taxes, assessments, or contributions in excess | ||
| of $250,000 during the fiscal period; and | ||
| (3) the district's cash and temporary investments were | ||
| not in excess of $250,000 during the fiscal period. | ||
| (b) Each annual financial report prepared in accordance | ||
| with this section must be open to public inspection and accompanied | ||
| by an affidavit signed by a duly authorized representative of the | ||
| district attesting to the accuracy and authenticity of the | ||
| financial report. | ||
| (c) The annual financial report and affidavit shall be | ||
| substantially similar in form to the annual financial report and | ||
| affidavit forms prescribed by the executive director of the | ||
| commission under Section 49.198, Water Code. | ||
| Sec. 3792.0317. NO EMINENT DOMAIN POWER. The district may | ||
| not exercise the power of eminent domain. | ||
| SUBCHAPTER D. ASSESSMENTS | ||
| Sec. 3792.0401. 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. 3792.0402. METHOD OF NOTICE FOR HEARING. The district | ||
| may mail the notice required by Section 375.115(c), Local | ||
| Government Code, by certified or first class United States mail. | ||
| The board shall determine the method of notice. | ||
| Sec. 3792.0403. 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. | ||
| SUBCHAPTER E. TAXES AND BONDS | ||
| Sec. 3792.0501. TAX ELECTION REQUIRED. The district must | ||
| hold an election in the manner provided by Chapter 49, Water Code, | ||
| or, if applicable, Chapter 375, Local Government Code, to obtain | ||
| voter approval before the district may impose an ad valorem tax. | ||
| Sec. 3792.0502. OPERATION AND MAINTENANCE TAX. (a) If | ||
| authorized by a majority of the district voters voting at an | ||
| election under Section 3792.0501, the district may impose an | ||
| operation and maintenance tax on taxable property in the district | ||
| in the manner provided by 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 operation and maintenance | ||
| 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. 3792.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE | ||
| BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on | ||
| terms determined by the board. | ||
| (b) The district, by competitive bid or negotiated sale, 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. | ||
| (c) The limitation on the outstanding principal amount of | ||
| bonds, notes, or other obligations provided by Section 49.4645, | ||
| Water Code, does not apply to the district. | ||
| Sec. 3792.0504. BONDS SECURED BY REVENUE OR CONTRACT | ||
| PAYMENTS. The district may issue, without an election, bonds | ||
| secured by: | ||
| (1) revenue other than ad valorem taxes, including | ||
| contract revenues; or | ||
| (2) contract payments, provided that the requirements | ||
| of Section 49.108, Water Code, have been met. | ||
| Sec. 3792.0505. BONDS SECURED BY AD VALOREM TAXES; | ||
| ELECTIONS. (a) If authorized at an election under Section | ||
| 3792.0501, the district may issue bonds payable from ad valorem | ||
| taxes. | ||
| (b) Section 375.243, Local Government Code, does not apply | ||
| to the district. | ||
| (c) 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. | ||
| (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. 3792.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The | ||
| board may not hold an election under Section 3792.0501, issue | ||
| bonds, or incur any debt until each municipality in whose corporate | ||
| limits or extraterritorial jurisdiction the district is located has | ||
| consented by ordinance or resolution to the creation of the | ||
| district and to the inclusion of land in the district. | ||
| (b) This section applies only to the district's first | ||
| issuance of bonds payable from ad valorem taxes. | ||
| SUBCHAPTER F. SALES AND USE TAX | ||
| Sec. 3792.0601. 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. 3792.0602. 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 Orchard Management District No. 1 at a rate not to exceed ____ | ||
| percent" (insert rate of one or more increments of one-eighth of one | ||
| percent). | ||
| Sec. 3792.0603. SALES AND USE TAX RATE. (a) On or after the | ||
| date the results are declared of an election held under Section | ||
| 3792.0602, 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 3792.0602, 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 3792.0602; 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. 3792.0604. 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: | ||
| (1) exclude the annexed territory from the district, | ||
| if the district has no outstanding debt or other obligations | ||
| payable from any source; or | ||
| (2) reduce the sales and use tax in the annexed | ||
| territory by resolution or order of the board to a rate that, when | ||
| added to the sales and use tax rate imposed by the municipality in | ||
| the annexed territory, is equal to the sales and use tax rate | ||
| imposed by the district in the district territory that was not | ||
| annexed by the municipality. | ||
| Sec. 3792.0605. 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. 3792.0606. 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. 3792.0607. 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 3792.0602 before the district may subsequently impose | ||
| the tax. | ||
| (e) This section does not apply to a decrease in the sales | ||
| and use tax authorized under Section 3792.0604(c)(2). | ||
| SUBCHAPTER I. DISSOLUTION | ||
| Sec. 3792.0901. DISSOLUTION. (a) The board shall dissolve | ||
| the district on written petition filed with the board by the owners | ||
| of: | ||
| (1) 66 percent or more of the assessed value of the | ||
| property subject to assessment by the district based on the most | ||
| recent certified county property tax rolls; or | ||
| (2) 66 percent or more of the surface area of the | ||
| district, excluding roads, streets, highways, utility | ||
| rights-of-way, other public areas, and other property exempt from | ||
| assessment by the district according to the most recent certified | ||
| county property tax rolls. | ||
| (b) The board by majority vote may dissolve the district at | ||
| any time. | ||
| (c) The district may not be dissolved by its board under | ||
| Subsection (a) or (b) if the district: | ||
| (1) has any outstanding bonded indebtedness until that | ||
| bonded indebtedness has been repaid or defeased in accordance with | ||
| the order or resolution authorizing the issuance of the bonds; | ||
| (2) has a contractual obligation to pay money until | ||
| that obligation has been fully paid in accordance with the | ||
| contract; or | ||
| (3) owns, operates, or maintains public works, | ||
| facilities, or improvements unless the district contracts with | ||
| another person for the ownership, operation, or maintenance of the | ||
| public works, facilities, or improvements. | ||
| (d) Sections 375.261, 375.262, and 375.264, Local | ||
| Government Code, do not apply to the district. | ||
| SECTION 2. The Orchard Management District No. 1 initially | ||
| includes all the territory contained in the following area: | ||
| A Field Note Description of 920 Acres of Land, more or less, | ||
| being the Easterly 287.5 Acres of Land, more or less, of the German | ||
| Emigration Company Survey No. 6, Abstract 176 and 632.5 Acres of | ||
| Land, more or less, being the remainder of the David Scott Heirs | ||
| Survey, Abstract 316, Fort Bend County, Texas. | ||
| Beginning at a point in the South line of the Gail Borden | ||
| League, Abstract 12 marking the Northwest corner of the Peter | ||
| McGreal Survey, Abstract 338 and Northeast corner of said German | ||
| Emigration Company Survey No. 6, Abstract 176 and the Northeast | ||
| corner of and place of beginning for this 920 Acre Tract; | ||
| THENCE, South, 3279.63 feet, more or less, along the East | ||
| line of said German Emigration Company Survey No. 6, Abstract 176 | ||
| and the West line of said Peter McGreal Survey, Abstract 338 to the | ||
| Southeast corner of said German Emigration Company Survey No. 6, | ||
| Abstract 176 and the Southwest corner of said Peter McGreal Survey, | ||
| Abstract 338 to a point marking a re-entrant corner for this tract; | ||
| THENCE, East, 1120 feet, more or less, along the North line of | ||
| the David Scott Heirs Survey, Abstract 316 and the South line of | ||
| said Peter McGreal Survey, Abstract 338 to a point marking the | ||
| Northeast corner of said David Scott Heirs Survey, Abstract 316 and | ||
| Northwest corner of the German Emigration Company Survey No. 8, | ||
| Abstract 177 and marking a Southerly Northeast corner for this | ||
| tract; | ||
| THENCE, South, 5445 feet, more or less, along the East line of | ||
| said David Scott Heirs Survey, Abstract 316 and West line of said | ||
| German Emigration Company Survey No. 8, Abstract 177 and Heirs of | ||
| L. Burknapp Survey, Abstract 109 to the Southeast corner of said | ||
| David Scott Heirs Survey, Abstract 316 for the Southeast corner of | ||
| this tract; said corner also marking the Northeast corner of the | ||
| Mark Smith Survey, Abstract 314; | ||
| THENCE, West, 5060 feet, more or less, along the North line of | ||
| the Mark Smith Survey, Abstract 314 and South line of said David | ||
| Scott Heirs Survey, Abstract 316 to a point in the East right-of-way | ||
| line of State Farm Market Road No. 1489 marking the Southwest | ||
| corner for this tract; | ||
| THENCE, North, along said East right-of-way line of said | ||
| State Farm Market Road No. 1489, at 5445 feet, more or less, pass | ||
| the North line of said David Scott Heirs Survey, Abstract 316 and | ||
| South line of said German Emigration Company Survey No. 6, Abstract | ||
| 176, in all 7487.25 feet, more or less, to the point of curve to the | ||
| right; | ||
| THENCE, Continuing along said Southeast right-of-way line of | ||
| State Farm Market Road No. 1489, Northeasterly along a curve to the | ||
| right with the following data: Delta=63degrees 19'06', | ||
| Radius=1086.28 feet, Length=1200.48 feet and Chord= North | ||
| 31deg.39'33" East, 1140.3 feet, more or less to point of tangency; | ||
| THENCE, North 63deg.19'06" East, 594.11 feet, more or less | ||
| along said Southeast right-of-way line of State Farm Market Road | ||
| No. 1489 to a point in the South line of said Gail Borden League, | ||
| Abstract 12 marking the Northwest corner for this tract; | ||
| THENCE, East, 2810.65 feet, more or less, along said South | ||
| line of said Gail Borden League, Abstract 12 and North line of said | ||
| German Emigration Company Survey No. 6 to the place of beginning | ||
| and containing 920 Acres of Land, more or less. | ||
| 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) 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. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 4635 was passed by the House on May 3, | ||
| 2019, by the following vote: Yeas 130, Nays 10, 2 present, not | ||
| voting; and that the House concurred in Senate amendments to H.B. | ||
| No. 4635 on May 23, 2019, by the following vote: Yeas 124, Nays 18, | ||
| 1 present, not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 4635 was passed by the Senate, with | ||
| amendments, on May 21, 2019, by the following vote: Yeas 29, Nays | ||
| 2. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: __________________ | ||
| Date | ||
| __________________ | ||
| Governor | ||
