85(R) HB 2332 - Enrolled version

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	H.B. No. 2332




	AN ACT
	relating to the creation of the Brazoria County 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 3944 to read as follows:
	CHAPTER 3944. BRAZORIA COUNTY MANAGEMENT DISTRICT NO. 1
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 3944.001. DEFINITIONS. In this chapter:
	(1) "Board" means the district's board of directors.
	(2) "County" means Brazoria County.
	(3) "Director" means a board member.
	(4) "District" means the Brazoria County Management
	District No. 1.
	Sec. 3944.002. 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. 3944.003. CONFIRMATION AND DIRECTORS' ELECTION
	REQUIRED. The temporary directors shall hold an election to
	confirm the creation of the district and to elect five permanent
	directors as provided by Section 49.102, Water Code.
	Sec. 3944.004. CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section 3944.003
	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.
	Sec. 3944.005. 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, the legislature has established
	a program to accomplish the public purposes set out in Sections 52
	and 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 a municipality or 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 governmental services
	provided in the district.
	Sec. 3944.006. 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; and
	(3) promote the health, safety, welfare, and enjoyment
	of the public by providing pedestrian ways, road facilities,
	transit facilities, parking facilities, enhanced infrastructure,
	recreational facilities, public art objects, water and wastewater
	facilities, and drainage facilities, and by landscaping and
	developing certain areas in the district, which are necessary for
	the restoration, preservation, and enhancement of scenic beauty.
	(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. 3944.007. 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 of the district 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, notes, or other
	obligations for a purpose for which the district is created or to
	pay the principal of and interest on the bonds, notes, or other
	obligations;
	(3) right to impose or collect an assessment or tax; or
	(4) legality or operation.
	Sec. 3944.008. 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. 3944.009. APPLICABILITY OF MUNICIPAL MANAGEMENT
	DISTRICTS LAW. Except as otherwise provided by this chapter,
	Chapter 375, Local Government Code, applies to the district.
	Sec. 3944.010. LIBERAL CONSTRUCTION OF CHAPTER. This
	chapter shall be liberally construed in conformity with the
	findings and purposes stated in this chapter.
	Sec. 3944.011. 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. 3944.051. 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 3944.053, directors serve
	staggered four-year terms.
	Sec. 3944.052. 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. 3944.053. TEMPORARY DIRECTORS. (a) On or after the
	effective date of the Act creating 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) Temporary directors serve until the earlier of:
	(1) the date permanent directors are elected under
	Section 3944.003; or
	(2) the fourth anniversary of the effective date of
	the Act creating this chapter.
	(c) If permanent directors have not been elected under
	Section 3944.003 and the terms of the temporary directors have
	expired, successor temporary directors shall be appointed or
	reappointed as provided by Subsection (d) to serve terms that
	expire on the earlier of:
	(1) the date permanent directors are elected under
	Section 3944.003; or
	(2) the fourth anniversary of the date of the
	appointment or reappointment.
	(d) If Subsection (c) 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. 3944.054. DISQUALIFICATION OF DIRECTORS. Section
	49.052, Water Code, applies to the members of the board.
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 3944.101. GENERAL POWERS AND DUTIES. The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 3944.102. 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. 3944.103. 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. 3944.104. 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. 3944.105. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
	(a) The district may convey a road project authorized by Section
	3944.104 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 3944.104
	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. 3944.106. 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. 3944.107. 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. 3944.108. 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. 3944.109. LAW ENFORCEMENT SERVICES. Section 49.216,
	Water Code, applies to the district.
	Sec. 3944.110. 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. 3944.111. 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 that:
	(1) Chapter 380, Local Government Code, provides to a
	municipality; and
	(2) Subchapter A, Chapter 1509, Government Code,
	provides to a municipality.
	Sec. 3944.112. 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. 3944.113. 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. 3944.114. 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.
	(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 3944.202 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 3944.202 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. 3944.115. APPLICABILITY OF OTHER LAW TO CERTAIN
	CONTRACTS. (a) Subchapter I, Chapter 49, Water Code, applies to a
	district contract for construction work, equipment, materials, or
	machinery. Notwithstanding Section 2269.003(a), Government Code,
	the district may use a project delivery method described by
	Subchapter I, Chapter 49, Water Code, or Subchapters A-G, I, and J,
	Chapter 2269, Government Code.
	(b) Notwithstanding Subsection (a), the board may adopt
	rules governing the receipt of bids and the award of a district
	contract and providing for the waiver of the competitive bid
	process if:
	(1) there is an emergency;
	(2) the needed materials are available only from one
	source;
	(3) in a procurement requiring design by the supplier
	competitive bidding would not be appropriate and competitive
	negotiation, with proposals solicited from an adequate number of
	qualified sources, would permit reasonable competition consistent
	with the nature and requirements of the procurement; or
	(4) after solicitation, it is ascertained that there
	will be only one bidder.
	(c) Section 375.223, Local Government Code, does not apply
	to the district.
	Sec. 3944.116. TERMS OF EMPLOYMENT; COMPENSATION. The
	board may employ and establish the terms of employment and
	compensation of an executive director or general manager and any
	other district employees the board considers necessary.
	Sec. 3944.117. 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. 3944.118. NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
	Sec. 3944.151. 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. 3944.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
	The district may acquire, construct, finance, operate, maintain, or
	provide any improvement or service authorized under this chapter or
	Chapter 375, Local Government Code, using any money available to
	the district.
	Sec. 3944.153. 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) The petition 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. 3944.154. 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. 3944.155. 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 without regard to whether that area is already subject to
	or overlaps with an area of the district that is subject to a prior
	assessment imposed by the board.
	(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 are:
	(1) a first and prior lien against the property
	assessed;
	(2) superior to any other lien or claim other than a
	lien or claim for county, school district, or municipal ad valorem
	taxes; and
	(3) 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. 3944.156. TAX AND ASSESSMENT ABATEMENTS. The district
	may designate reinvestment zones and may grant abatements of a tax
	or assessment on property in the zones.
	Sec. 3944.157. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS.
	The district may not impose an assessment on the property,
	including the equipment, rights-of-way, facilities, or
	improvements, of:
	(1) an electric utility or a power generation company
	as defined by Section 31.002, Utilities Code;
	(2) a gas utility as defined by Section 101.003 or
	121.001, Utilities Code;
	(3) a telecommunications provider as defined by
	Section 51.002, Utilities Code; or
	(4) a person who provides to the public cable
	television or advanced telecommunications services.
	Sec. 3944.158. RESIDENTIAL PROPERTY. Section 375.161,
	Local Government Code, does not apply to:
	(1) a tax imposed by the district; or
	(2) a required payment for a service provided by the
	district, including water and sewer service.
	Sec. 3944.159. OPERATION AND MAINTENANCE TAX. (a) If
	authorized at an election held under Section 3944.163, the district
	may impose an annual 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) operate and maintain 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. 3944.160. CONTRACT TAXES. 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.
	Sec. 3944.161. 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 may by competitive bid or negotiated sale
	issue bonds, notes, or other obligations payable wholly or partly
	from taxes, including ad valorem taxes, or assessments, 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) In addition to any other terms authorized by the board
	by bond order or resolution, the proceeds of the district's bonds
	may be used for a reserve fund, credit enhancement, or capitalized
	interest for the bonds.
	(d) The limitation on the outstanding principal amount of
	bonds, notes, and other obligations provided by Section 49.4645,
	Water Code, does not apply to the district.
	Sec. 3944.162. 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 ad valorem tax, without limit as to rate or amount, while 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. 3944.163. 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
	(2) contract payments described by Section 3944.160.
	(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 sales and use 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 through the issuance of district bonds
	may be included in one single proposition to be voted on at the
	election or the bonds may be submitted in several propositions.
	Sec. 3944.164. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
	OBLIGATIONS. Except as provided by Section 375.263, Local
	Government Code, a municipality is not required to pay a bond, note,
	or other obligation of the district.
	Sec. 3944.165. 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 Texas
	Commission on Environmental Quality under Section 49.198, Water
	Code.
	SUBCHAPTER E. SALES AND USE TAX
	Sec. 3944.201. 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. 3944.202. 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 Brazoria County 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. 3944.203. SALES AND USE TAX RATE. (a) On or after the
	date the results are declared of an election held under Section
	3944.202, 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 3944.202, 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 3944.202; 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. 3944.204. 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. 3944.205. 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. 3944.206. 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. 3944.207. 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 3944.202 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 3944.204(c)(2).
	SUBCHAPTER F. HOTEL OCCUPANCY TAX
	Sec. 3944.251. DEFINITION. In this subchapter, "hotel" has
	the meaning assigned by Section 156.001, Tax Code.
	Sec. 3944.252. APPLICABILITY OF CERTAIN TAX CODE
	PROVISIONS. (a) For purposes of this subchapter:
	(1) a reference in Subchapter A, Chapter 352, Tax
	Code, to a county is a reference to the district; and
	(2) a reference in Subchapter A, Chapter 352, Tax
	Code, to the commissioners court is a reference to the board.
	(b) Except as inconsistent with this subchapter, Subchapter
	A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
	by this subchapter, including the collection of the tax, subject to
	the limitations prescribed by Sections 352.002(b) and (c), Tax
	Code.
	Sec. 3944.253. TAX AUTHORIZED; USE OF REVENUE. The
	district may impose a hotel occupancy tax for any purpose described
	by Section 351.101 or 352.101, Tax Code.
	Sec. 3944.254. TAX RATE. (a) The amount of the hotel
	occupancy tax may not exceed the lesser of:
	(1) the maximum rate prescribed by Section 352.003(a),
	Tax Code; or
	(2) a rate that, when added to the rates of all hotel
	occupancy taxes imposed by other political subdivisions with
	territory in the district and by this state, does not exceed the sum
	of the rate prescribed by Section 351.0025(b), Tax Code, plus two
	percent.
	(b) The district tax is in addition to a tax imposed by a
	municipality under Chapter 351, Tax Code, or by the county under
	Chapter 352, Tax Code.
	Sec. 3944.255. INFORMATION. The district may examine and
	receive information related to the imposition of hotel occupancy
	taxes to the same extent as if the district were a county.
	Sec. 3944.256. USE OF REVENUE. The district may use revenue
	from the hotel occupancy tax for any district purpose that is an
	authorized use of hotel occupancy tax revenue under Chapter 351 or
	352, Tax Code. 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 available to the
	district.
	Sec. 3944.257. ABOLITION OF TAX. (a) Except as provided by
	Subsection (b), the board may abolish the tax imposed under this
	subchapter.
	(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.
	SUBCHAPTER G. DISSOLUTION BY BOARD
	Sec. 3944.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING
	DEBT. (a) The board may dissolve the district regardless of
	whether the district has debt. Section 375.264, Local Government
	Code, does not apply to the district.
	(b) If the district has debt when it is dissolved, the
	district shall remain in existence solely for the purpose of
	discharging its debts. The dissolution is effective when all debts
	have been discharged.
	SECTION 2. The Brazoria County Management District No. 1
	initially includes all the territory contained in the following
	area:
	A METES & BOUNDS description of a certain 745.8 acre tract of
	land situated in the H.T.&B.R.R. Company Survey, Abstract No. 251,
	the A. A. Talmage Survey, Abstract No. 554, the A. A. Talmage
	Survey, Abstract No. 553 and the James L Holmes Heirs Survey,
	Abstract No. 610, all in Brazoria County, Texas and being out of a
	called 2856.555 acre tract of land (Tract 1) conveyed to Dee S.
	Osborne by the deed recorded in Volume 1159, Page 715 of the
	Brazoria County Deed Records, a called 98.2535 acre tract of land
	conveyed to Southeast Properties, Ltd by the deed recorded in
	Clerk's File No. 92-33050 of the Brazoria County Official Public
	Records and a called 109.232 acre tract of land conveyed to
	Southeast Properties, LTD recorded in Volume 1221, Page 362 of the
	Brazoria County Deed Records; said 745.8 acre tract being more
	particularly described as follows with all bearings being based on
	the Texas Coordinate System, South Central Zone, NAD 83;
	COMMENCING at a found concrete monument at the northeast
	corner of said 98.2535 acres also being in the southerly
	right-of-way line of FM 1462;
	THENCE, South 86°56'14" West, along the northerly line of said
	98.2535 and 2856.555 acre tracts, common with the southerly
	right-of-way line of said FM 1462, a distance of 1005.62 feet to a
	set 3/4-inch iron rod (with cap stamped "JonesCarter property
	corner") for the POINT OF BEGINNING of the herein described tract;
	THENCE, over and across said 98.2535 and 2856.555 acre tracts
	the following seven (7) bearings and distances;
	1) South 33°31'32" East, a distance of 2191.74 feet to
	a point for corner;
	2) South 32°16'42" East, a distance of 473.37 feet to a
	point for corner;
	3) South 33°50'21" East, a distance of 1651.19 feet to
	a point for corner;
	4) South 34°22'34" East, a distance of 700.44 feet to a
	point for corner;
	5) South 67°37'10" East, a distance of 885.98 feet to a
	point for corner;
	6) South 68°00'23" East, a distance of 1178.08 feet to
	a point for corner;
	7) South 67°16'53" East, a distance of 1365.55 feet to
	the beginning of a non-tangent curve to the left;
	THENCE, continuing over and across said 2856.555 acres and
	along the arc of said non-tangent curve to the left having a radius
	of 5280.00 feet, a central angle of 21°24'05", an arc length of
	1972.22 feet, and a long chord bearing South 51°53'34" East, 1960.78
	feet to a point at the beginning of a compound curve to the left;
	THENCE, continuing over and across said 2856.555 acres and
	along the arc of said compound curve to the left having a radius of
	5280.00 feet, a central angle of 07°33'42", an arc length of 696.84
	feet, and a long chord bearing South 48°41'21" East, 696.33 feet to a
	set 3/4-inch iron rod (with cap stamped "JonesCarter property
	corner") in the southeasterly line of said 2856.555 acre tract,
	common with the northwesterly line of a called 110.21 acre tract of
	land conveyed to Patrick D. Moller and wife, Suzanne Moller by the
	deed recorded in Clerk's File No. 96-005947 of the Brazoria County
	Official Public Records;
	THENCE, South 59°36'38" West, along the southeasterly line of
	said 2856.555 acre tract, common with the northwesterly lines of
	said 110.21 acres and a called 5440.64 acre tract of land conveyed
	to HRI Development Corporation by the deed recorded in Clerk's File
	No. 88544-596 of the Brazoria County Official Public Records, a
	distance of 2868.79 feet to a set 3/4-inch iron rod (with cap
	stamped "JonesCarter property corner");
	THENCE over and across said 2856.555 and 109.232 acre tracts
	the following six (6) bearings and distances;
	1) North 67°38'45" West, a distance of 2391.22 feet to
	a point for corner;
	2) North 67°31'02" West, a distance of 2641.65 feet to
	a point for corner;
	3) North 33°08'38" West, a distance of 825.02 feet to a
	point for corner;
	4) North 37°02'29" West, a distance of 125.27 feet to a
	point for corner;
	5) North 34°06'46" West, a distance of 525.85 feet to a
	point for corner;
	6) North 32°45'11" West, a distance of 1737.40 feet to
	a point for corner;
	THENCE, North 33°07'56" West, continuing over and across said
	2856.55 and 109.232 acre tracts, a distance of 1574.72 feet to a set
	3/4-inch iron rod (with cap stamped "JonesCarter property corner")
	in a northerly line of said 2856.555 acre tract, common with the
	southerly line of a called 80.74 acre tract of land (Tract 2)
	conveyed to South Associates by the deed recorded in Volume 1420,
	Page 710 of the Brazoria County Deed Records;
	THENCE, North 86°55'53" East, along said common line, 256.28
	feet to the southeast corner of said 80.74 acre tract also being in
	the westerly line of the aforementioned 109.232 acre tract;
	THENCE, North 02°27'26" West, along the westerly line of said
	109.232 acre tract, common with the easterly line of said 80.74 acre
	tract, a distance of 2584.43 feet to a set 3/4-inch iron rod (with
	cap stamped "JonesCarter property corner") at the northwest corner
	of said 109.232 acre tract also being in the southerly right-of-way
	line of said FM 1462;
	THENCE, North 87°01'47" East, along the northerly line of said
	109.232 and 2856.555 acre tracts, common with the southerly
	right-of-way line of said FM 1462, a distance of 1590.81 feet to the
	POINT OF BEGINNING, CONTAINING 745.8 acres of land in Brazoria
	County, Texas.
	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, 2017.



	______________________________	______________________________
	President of the Senate	Speaker of the House


	I certify that H.B. No. 2332 was passed by the House on April
	28, 2017, by the following vote: Yeas 118, Nays 16, 2 present, not
	voting.

	______________________________
	Chief Clerk of the House


	I certify that H.B. No. 2332 was passed by the Senate on May
	11, 2017, by the following vote: Yeas 30, Nays 1.

	______________________________
	Secretary of the Senate
	APPROVED: _____________________
	Date

	_____________________
	Governor