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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-06-14 - Effective immediately [HB4635 Detail]

Download: Texas-2019-HB4635-Enrolled.html
 
 
  H.B. No. 4635
 
 
 
 
AN ACT
  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       
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