83R6076 SLB-F

By: Morrison H.B. No. 3872

A BILL TO BE ENTITLED

AN ACT

relating to the name and powers and duties of the Port O'Connor Municipal Utility District; providing authority to impose a sales and use tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1, Chapter 693, Acts of the 65th Legislature, Regular Session, 1977, is amended to read as follows:

Section 1. Pursuant to the provisions of Article XVI, Section 59, of the Texas Constitution, a conservation and reclamation district is created and established in Calhoun County, Texas, to be known as the Port O'Connor Improvement [Municipal Utility] District, which shall be a governmental agency and a body politic and corporate subject to the confirmation election provided for in Section 6 of this Act. The creation and establishment of the district is declared to be essential to the accomplishment of the purposes of Article XVI, Section 59, of the Texas Constitution.

SECTION 2. Chapter 693, Acts of the 65th Legislature, Regular Session, 1977, is amended by adding Sections 1A, 11, 12, 13, 14, and 15 to read as follows:

Sec. 1A. In this Act:

(1) "Board" means the district's board of directors.

(2) "District" means the Port O'Connor Improvement District.

Sec. 11. 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 Sections 12-15 of this Act except to the extent Chapter 321, Tax Code, is inconsistent with those sections.

(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. 12. 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 district shall provide notice and hold the election in the manner provided by Subchapter D, Chapter 49, Water Code.

(d) The ballot shall be printed to provide for voting for or against the proposition: "Authorization of a sales and use tax in the Port O'Connor Improvement District at a rate not to exceed ____ percent" (insert rate of one or more increments of one-eighth of one percent).

Sec. 13. SALES AND USE TAX RATE. (a) After the date the results are declared of an election held under Section 12 of this Act at which the voters approved imposition of the tax authorized by that section, 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 12 of this Act, 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 12 of this Act; 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.

(d) In determining whether the combined sales and use tax rate under Subsection (c)(2) of this section would exceed the maximum combined rate prescribed by Section 321.101(f), Tax Code, at any location in the district, the board shall include:

(1) any sales and use tax imposed by a political subdivision whose territory overlaps all or part of the district;

(2) any sales and use tax to be imposed by Calhoun County as a result of an election held on the same date as the election held under Section 12 of this Act; and

(3) any increase to an existing sales and use tax imposed by Calhoun County as a result of an election held on the same date as the election held under Section 12 of this Act.

(e) The board shall notify the comptroller of any changes made to the tax rate in the same manner the municipal secretary provides notice to the comptroller under Section 321.405(b), Tax Code.

Sec. 14. USE OF REVENUE. Revenue from the sales and use tax imposed under Section 13 of this Act 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. 15. ABOLITION OR DECREASE OF TAX. (a) Except as provided by Subsection (b) of this section, the board may abolish or decrease the tax imposed under Section 13 of this Act without an election.

(b) The board may not abolish or decrease the tax imposed under Section 13 of this Act if the district has outstanding debt secured by the tax and repayment of the debt would be impaired by the abolition or decrease of the tax.

(c) If the board abolishes or decreases 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 12 of this Act before the district may subsequently impose the tax.

SECTION 3. The Port O'Connor Improvement District retains all rights, powers, privileges, authorities, duties, and functions that it had before the effective date of this Act.

SECTION 4. (a) The legislature validates and confirms all governmental acts and proceedings of the Port O'Connor Improvement District that were taken before the effective date of this Act.

(b) This section does not apply to any matter that on the effective date of this Act:

(1) is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment; or

(2) has been held invalid by a final court judgment.

SECTION 5. (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, the lieutenant governor, and the 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 are fulfilled and accomplished.

SECTION 6. 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, 2013.