H.B. No. 4320

	AN ACT
	relating to the creation of the Fort Bend County Municipal
	Management District No. 2; providing authority to issue bonds;
	providing authority to impose assessments, fees, or taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 4, Special District Local Laws
	Code, is amended by adding Chapter 3957 to read as follows:
	CHAPTER 3957.  FORT BEND COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 2
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 3957.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "County" means Fort Bend County.
	(3)  "Director" means a board member.
	(4)  "District" means the Fort Bend County Municipal
	Management District No. 2.
	Sec. 3957.002.  NATURE OF DISTRICT. The district is a
	special district created under Section 59, Article XVI, Texas
	Constitution.
	Sec. 3957.003.  PURPOSE; LEGISLATIVE FINDINGS. (a) The
	creation of the district is essential to accomplish the purposes of
	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
	Texas Constitution, and other public purposes stated in this
	chapter. By creating the district and in authorizing the county and
	other political subdivisions to contract with the district, the
	legislature has established a program to accomplish the public
	purposes set out in Section 52-a, Article III, Texas Constitution.
	(b)  The creation of the district is necessary to promote,
	develop, encourage, and maintain employment, commerce,
	transportation, housing, tourism, recreation, the arts,
	entertainment, economic development, safety, and the public
	welfare in the district.
	(c)  This chapter and the creation of the district may not be
	interpreted to relieve the county from providing the level of
	services provided as of the effective date of the Act enacting this
	chapter to the area in the district. The district is created to
	supplement and not to supplant county services provided in the
	district.
	Sec. 3957.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
	The district is created to serve a public use and benefit.
	(b)  All land and other property included in the district
	will benefit from the improvements and services to be provided by
	the district under powers conferred by Sections 52 and 52-a,
	Article III, and Section 59, Article XVI, Texas Constitution, and
	other powers granted under this chapter.
	(c)  The creation of the district is in the public interest
	and is essential to further the public purposes of:
	(1)  developing and diversifying the economy of the
	state;
	(2)  eliminating unemployment and underemployment; and
	(3)  developing or expanding transportation and
	commerce.
	(d)  The district will:
	(1)  promote the health, safety, and general welfare of
	residents, employers, potential employees, employees, visitors,
	and consumers in the district, and of the public;
	(2)  provide needed funding for the district to
	preserve, maintain, and enhance the economic health and vitality of
	the district territory as a community and business center;
	(3)  promote the health, safety, welfare, and enjoyment
	of the public by providing pedestrian ways and by landscaping and
	developing certain areas in the district, which are necessary for
	the restoration, preservation, and enhancement of scenic beauty;
	and
	(4)  provide for water, wastewater, drainage, road, and
	recreational facilities for the district.
	(e)  Pedestrian ways along or across a street, whether at
	grade or above or below the surface, and street lighting, street
	landscaping, parking, and street art objects are parts of and
	necessary components of a street and are considered to be a street
	or road improvement.
	(f)  The district will not act as the agent or
	instrumentality of any private interest even though the district
	will benefit many private interests as well as the public.
	Sec. 3957.005.  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 bonds;
	(3)  right to impose or collect an assessment or tax; or
	(4)  legality or operation.
	Sec. 3957.006.  APPLICABILITY OF MUNICIPAL MANAGEMENT
	DISTRICTS LAW. Except as otherwise provided by this chapter,
	Chapter 375, Local Government Code, applies to the district.
	Sec. 3957.007.  CONSTRUCTION OF CHAPTER. This chapter shall
	be liberally construed in conformity with the findings and purposes
	stated in this chapter.
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 3957.051.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five directors elected in the manner provided
	by Sections 49.102 and 49.103, Water Code.
	(b)  Except as provided by Section 3957.054, directors serve
	staggered four-year terms.
	Sec. 3957.052.  QUORUM. For purposes of determining the
	requirements for a quorum of the board, the following are not
	counted:
	(1)  a board position vacant for any reason, including
	death, resignation, or disqualification; or
	(2)  a director who is abstaining from participation in
	a vote because of a conflict of interest.
	Sec. 3957.053.  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. 3957.054.  TEMPORARY VOTING 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 Texas Commission on
	Environmental Quality requesting that the commission appoint as
	temporary voting directors the five persons named in the petition.
	The commission shall appoint the five persons named in the petition
	as temporary directors by position.
	(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
	may submit a petition to the Texas Commission on Environmental
	Quality requesting that the commission appoint as successor
	temporary directors the five persons named in the petition.  The
	commission shall appoint as successor temporary directors the five
	persons named in the petition.
	(f)  Section 3957.051 does not apply to this section.
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 3957.101.  GENERAL POWERS AND DUTIES. The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 3957.102.  IMPROVEMENT PROJECTS AND SERVICES. The
	district may provide, design, construct, acquire, improve,
	relocate, operate, maintain, or finance an improvement project or
	service using any 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
	Chapter 375, Local Government Code.
	Sec. 3957.103.  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. 3957.104.  LAW ENFORCEMENT SERVICES. To protect the
	public interest, the district may contract with a qualified party,
	including the county, to provide law enforcement services in the
	district for a fee.
	Sec. 3957.105.  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. 3957.106.  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 provided to
	municipalities by:
	(1)  Chapter 380, Local Government Code; and
	(2)  Subchapter A, Chapter 1509, Government Code.
	Sec. 3957.107.  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. 3957.108.  ANNEXATION OF LAND. The district may annex
	land as provided by Subchapter J, Chapter 49, Water Code.
	Sec. 3957.109.  NO EMINENT DOMAIN POWER.  The district may
	not exercise the power of eminent domain.
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
	Sec. 3957.151.  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. 3957.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
	The district may acquire, construct, finance, operate, or maintain
	any improvement or service authorized under this chapter or Chapter
	375, Local Government Code, using any money available to the
	district.
	Sec. 3957.153.  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)  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. 3957.154.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
	The board by resolution may impose and collect an assessment for any
	purpose authorized by this chapter in all or any part of the
	district.
	(b)  An assessment, a reassessment, or an assessment
	resulting from an addition to or correction of the assessment roll
	by the district, penalties and interest on an assessment or
	reassessment, an expense of collection, and reasonable attorney's
	fees incurred by the district:
	(1)  are a first and prior lien against the property
	assessed;
	(2)  are superior to any other lien or claim other than
	a lien or claim for county, school district, or municipal ad valorem
	taxes; and
	(3)  are the personal liability of and a charge against
	the owners of the property even if the owners are not named in the
	assessment proceedings.
	(c)  The lien is effective from the date of the board's
	resolution imposing the assessment until the date the assessment is
	paid. The board may enforce the lien in the same manner that the
	board may enforce an ad valorem tax lien against real property.
	(d)  The board may make a correction to or deletion from the
	assessment roll that does not increase the amount of assessment of
	any parcel of land without providing notice and holding a hearing in
	the manner required for additional assessments.
	Sec. 3957.155.  TAX AND ASSESSMENT ABATEMENTS.  The district
	may designate reinvestment zones and may grant abatements of a tax
	or assessment on property in the zones.
	SUBCHAPTER E. TAXES AND BONDS
	Sec. 3957.201.  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 3957.203.
	(b)  The district must hold an election in the manner
	provided by Subchapter L, Chapter 375, Local Government Code, to
	obtain voter approval before the district may impose an ad valorem
	tax or issue bonds payable from ad valorem taxes.
	(c)  Section 375.243, Local Government Code, does not apply
	to the district.
	(d)  All or any part of any facilities or improvements that
	may be acquired by a district by the issuance of its bonds may be
	submitted as a single proposition or as several propositions to be
	voted on at the election.
	Sec. 3957.202.  OPERATION AND MAINTENANCE TAX. (a) If
	authorized by a majority of the district voters voting at an
	election held in accordance with Section 3957.201, the district may
	impose an operation and maintenance tax on taxable property in the
	district in accordance with Section 49.107, Water Code, for any
	district purpose, including to:
	(1)  maintain and operate the district;
	(2)  construct or acquire improvements; or
	(3)  provide a service.
	(b)  The board shall determine the tax rate. The rate may not
	exceed the rate approved at the election.
	(c)  Section 49.107(h), Water Code, does not apply to the
	district.
	Sec. 3957.203.  CONTRACT TAXES. (a) In accordance with
	Section 49.108, Water Code, the district may impose a tax other than
	an operation and maintenance tax and use the revenue derived from
	the tax to make payments under a contract after the provisions of
	the contract have been approved by a majority of the district voters
	voting at an election held for that purpose.
	(b)  A contract approved by the district voters may contain a
	provision stating that the contract may be modified or amended by
	the board without further voter approval.
	Sec. 3957.204.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
	AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
	determined by the board.  Section 375.205, Local Government Code,
	does not apply to a loan, line of credit, or other borrowing from a
	bank or financial institution secured by revenue other than ad
	valorem taxes.
	(b)  The district may issue bonds, notes, or other
	obligations payable wholly or partly from ad valorem taxes,
	assessments, impact fees, revenue, contract payments, grants, or
	other district money, or any combination of those sources of money,
	to pay for any authorized district purpose.
	(c)  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. 3957.205.  TAXES FOR BONDS. At the time the district
	issues bonds payable wholly or partly from ad valorem taxes, the
	board shall provide for the annual imposition of a continuing
	direct annual ad valorem tax, without limit as to rate or amount,
	for each year that all or part of the bonds are outstanding as
	required and in the manner provided by Sections 54.601 and 54.602,
	Water Code.
	SUBCHAPTER F.  DEFINED AREAS
	Sec. 3957.251.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
	DESIGNATED PROPERTY. The district may define areas or designate
	certain property of the district to pay for improvements,
	facilities, or services that primarily benefit that area or
	property and do not generally and directly benefit the district as a
	whole.
	Sec. 3957.252.  PROCEDURE FOR ELECTION. (a) Before the
	district may impose an ad valorem tax or issue bonds payable from ad
	valorem taxes of the defined area or designated property, the board
	shall hold an election in the defined area or in the designated
	property only.
	(b)  The board may submit the proposition to the voters on
	the same ballot to be used in another election.
	Sec. 3957.253.  DECLARING RESULT AND ISSUING ORDER. (a) If
	a majority of the voters voting at the election approve the
	proposition or propositions, the board shall declare the results
	and, by order, shall establish the defined area and describe it by
	metes and bounds or designate the specific property.
	(b)  A court may not review the board's order except on the
	ground of fraud, palpable error, or arbitrary and confiscatory
	abuse of discretion.
	Sec. 3957.254.  TAXES FOR SERVICES, IMPROVEMENTS, AND
	FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
	approval and adoption of the order described by Section 3957.253,
	the district may apply separately, differently, equitably, and
	specifically its taxing power and lien authority to the defined
	area or designated property to provide money to construct,
	administer, maintain, and operate services, improvements, and
	facilities that primarily benefit the defined area or designated
	property.
	Sec. 3957.255.  ISSUANCE OF BONDS FOR DEFINED AREA OR
	DESIGNATED PROPERTY. After the order under Section 3957.253 is
	adopted, the district may issue bonds to provide for any land,
	improvements, facilities, plants, equipment, and appliances for
	the defined area or designated property.
	Sec. 3957.256.  ADDITION OR EXCLUSION OF LAND IN DEFINED
	AREA. The district may add or exclude land from the defined areas
	in the same manner the district may add or exclude land from the
	district.
	SUBCHAPTER G.  DISSOLUTION AND MUNICIPAL ANNEXATION
	Sec. 3957.301.  DISSOLUTION; MUNICIPAL ANNEXATION. (a) The
	district is a water or sewer district for the purposes of Section
	43.071, Local Government Code.
	(b)  Section 43.075, Local Government Code, applies to the
	district.
	(c)  Section 375.264, Local Government Code, does not apply
	to the dissolution of the district by a municipality.
	SECTION 2.  The Fort Bend County Municipal Management
	District No. 2 initially includes all the territory contained in
	the following area:
	BEING a 100.0 acre tract of land situated in the Knight and
	White Survey, Abstract No. 46 of Fort Bend County, Texas and being a
	portion of a called 901.854 acre tract (Tract I) of land as
	described in an instrument to WBH Ranches, LP recorded under Fort
	Bend County Clerk's File Number (F.B.C.C.F. No.) 2015004534, said
	100.0 acre tract of land described by metes and bounds as follows:
	COMMENCING at an interior corner of said 901.854 acre tract,
	same being the northwest corner of a called 294.296 acre tract as
	described in an instrument to Old South Plantation, Inc. recorded
	under F.B.C.C.F. No. 9722234, and the northwest corner of a called
	19.991 acre Drainage Easement tract as described in an instrument
	to the State of Texas for highway drainage purposes recorded under
	Volume 2247, Page 916 of the Fort Bend County Deed Records;
	THENCE, S 02°29'39" E, along and with the east line of said
	901.854 acre tract, same being the west line of said 294.296 acre
	tract and said 19.991 acre drainage easement tract, a distance of
	1,127.28 feet to the northeast corner and POINT OF BEGINNING of the
	herein described tract;
	THENCE, S 02°29'39" E, continuing along and with said east
	line, a distance of 2,087.00 feet to the southeast corner of the
	herein described tract;
	THENCE, over and across said 901.854 acre tract, the
	following courses and distances:
	S 87°30'21" W, a distance of 2,087.21 feet to the
	southwest corner of the herein described tract;
	N 02°29'39" W, a distance of 2,087.00 feet to the
	northwest corner of the herein described tract;
	N 87°30'21" E, a distance of 2,087.21 feet to the POINT
	OF BEGINNING and containing 100.0 acres of land.
	Bearing orientation is based on the Texas Coordinate System,
	South Central Zone 4204, NAD-83 and is referenced to a called
	901.854 acre tract as cited herein.
	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. 4320 was passed by the House on May 9,
	2017, by the following vote:  Yeas 132, Nays 13, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4320 was passed by the Senate on May
	24, 2017, by the following vote:  Yeas 30, Nays 1.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor