Bill Text: TX HB3845 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to the powers of the CLL Municipal Utility District No. 1; providing authority to levy an assessment, impose a tax, and issue bonds.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2011-06-17 - Effective immediately [HB3845 Detail]

Download: Texas-2011-HB3845-Enrolled.html

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H.B. No. 3845

AN ACT
relating to the powers of the CLL Municipal Utility District No. 1;
providing authority to levy an assessment, impose a tax, and issue
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 8109, Special District
Local Laws Code, is amended by adding Sections 8109.0025 and
8109.0026 to read as follows:
Sec. 8109.0025. PURPOSE; DECLARATION OF INTENT. (a) 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 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.
Sec. 8109.0026. 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:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop 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;
(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 trails, landscaping, and other services
that are necessary for the restoration, preservation, and
enhancement of the scenic beauty and environment of the area.
SECTION 2. Chapter 8109, Special District Local Laws Code,
is amended by adding Subchapters D, E, F, G, H, and I to read as
follows:
SUBCHAPTER D. POWERS AND DUTIES
Sec. 8109.151. MUNICIPAL MANAGEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 375, Local Government
Code.
Sec. 8109.152. EXERCISE OF POWERS OF DEVELOPMENT
CORPORATION. The district may exercise the powers of a corporation
created under Section 380.001(c) or Chapter 501, Local Government
Code.
Sec. 8109.153. AIRPORT. The district may construct,
acquire, improve, maintain, and operate an airport and improvements
in aid of the airport.
Sec. 8109.154. AUTHORITY FOR ROAD PROJECTS. (a) Under
Section 52, Article III, Texas Constitution, the district may
design, acquire, construct, finance, issue bonds for, improve, and
convey to this state, a county, or a municipality for operation and
maintenance macadamized, graveled, or paved roads described by
Section 54.234, Water Code, or improvements, including storm
drainage, in aid of those roads.
(b) The district may exercise the powers provided by this
section without submitting a petition to or obtaining approval from
the Texas Commission on Environmental Quality as required by
Section 54.234, Water Code.
Sec. 8109.155. APPROVAL OF ROAD PROJECT. (a) The district
may not undertake a road project authorized by Section 8109.154
unless:
(1) each county that will operate and maintain the
road has approved the plans and specifications of the road project,
if a county will operate and maintain the road; or
(2) the Texas Transportation Commission has approved
the plans and specifications of the road project, if the state will
operate and maintain the road.
(b) Except as provided by Subsection (a), the district is
not required to obtain approval from the Texas Transportation
Commission to design, acquire, construct, finance, issue bonds for,
improve, or convey a road project.
Sec. 8109.156. NO TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
Sec. 8109.157. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
OR RESOLUTION. The district shall comply with all applicable
requirements of any ordinance or resolution that is adopted under
Section 54.016 or 54.0165, Water Code, and that consents to the
creation of the district or to the inclusion of land in the
district.
Sec. 8109.158. LIMITATION ON USE OF EMINENT DOMAIN. (a)
The district may only exercise the power of eminent domain
described by Chapters 49 and 54, Water Code.
(b) The district may not exercise the power of eminent
domain outside the district to acquire a site or easement for:
(1) a road project authorized by Section 8109.154; or
(2) a recreational facility as defined by Section
49.462, Water Code.
(c) The district may not exercise the power of eminent
domain for an improvement project.
SUBCHAPTER E. IMPROVEMENT PROJECTS
Sec. 8109.201. IMPROVEMENT PROJECTS; SERVICES. The
district may provide, or it may enter into contracts with a
governmental or private entity to provide, the improvement projects
and services described by this subchapter or activities in support
of or incidental to those projects and services.
Sec. 8109.202. BOARD DETERMINATION REQUIRED. The district
may not undertake a project under this subchapter unless the board
determines the project to be necessary to accomplish a public
purpose of the district.
Sec. 8109.203. WATER. An improvement project may include
a:
(1) wastewater treatment and disposal facility;
(2) water quality protection facility; and
(3) facility to enhance groundwater recharge.
Sec. 8109.204. IRRIGATION AND DRAINAGE. An improvement
project may include facilities for irrigation and drainage.
Sec. 8109.205. SOLID WASTE SERVICES. An improvement
project may include solid waste management services, including
garbage collection, recycling, and composting.
Sec. 8109.206. CONVENTION CENTER. An improvement project
may include the planning, design, construction, acquisition,
lease, rental, improvement, maintenance, installation, and
management of and provision of furnishings for a facility for:
(1) a conference, convention, or exhibition;
(2) a manufacturer, consumer, or trade show;
(3) a civic, community, or institutional event; or
(4) an exhibit, display, attraction, special event, or
seasonal or cultural celebration or holiday.
Sec. 8109.207. MISCELLANEOUS DESIGN, CONSTRUCTION, AND
MAINTENANCE. In addition to the projects and services described by
Section 375.112, Local Government Code, an improvement project may
include the planning, design, construction, improvement, and
maintenance of:
(1) highway right-of-way or transit corridor
beautification and improvement;
(2) a hiking and cycling path or trail;
(3) a garden, recreational facility, sports facility,
open space, scenic area, or related exhibit or preserve; or
(4) a storm water detention improvement.
Sec. 8109.208. SIMILAR IMPROVEMENT PROJECTS. An
improvement project may include a public improvement, facility, or
service similar to a project described by this subchapter.
SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS
Sec. 8109.251. ASSESSMENTS. The district may levy and
collect special assessments in the same manner and for the same
purposes as a municipal management district as provided in
Subchapter F, Chapter 375, Local Government Code.
SUBCHAPTER G. BONDS AND OTHER OBLIGATIONS
Sec. 8109.301. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations
payable wholly or partly from ad valorem taxes, impact fees,
revenue, contract payments, grants, hotel occupancy taxes, sales
and use taxes, other district money, or any combination of those
sources to pay for any authorized district purpose.
Sec. 8109.302. ELECTIONS REGARDING TAXES AND BONDS. (a)
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.
(b) Section 375.243, Local Government Code, does not apply
to the district.
(c) 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. 8109.303. TAXES FOR BONDS. (a) At the time the
district issues bonds payable wholly or partly from ad valorem
taxes, the board shall provide for the annual imposition of an ad
valorem tax, without limit as to rate or amount, as required by
Section 54.601, Water Code.
(b) The board shall annually impose the tax while all or
part of the bonds are outstanding. Sections 54.601 and 54.602,
Water Code, govern the amount and rate of the tax.
Sec. 8109.304. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other obligations
issued or incurred to finance road projects and payable from ad
valorem taxes may not exceed one-fourth of the assessed value of the real property in the district.
SUBCHAPTER H. SALES AND USE TAX
Sec. 8109.351. 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. 8109.352. 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 CLL Municipal Utility District No. 1 at a rate not to exceed
____ percent" (insert rate of one or more increments of one-eighth
of one percent).
Sec. 8109.353. SALES AND USE TAX RATE. (a) Not later than
the 10th day after the date the results are declared of an election
held under Section 8109.352, at which the voters approved
imposition of the tax authorized by this subchapter, the board
shall determine 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 8109.352, the
board may decrease the rate of the tax by one or more increments of
one-eighth of one percent. The board may not decrease the rate of
the tax if the decrease would impair the repayment of any
outstanding debt or obligation payable from the tax.
(c) The initial rate of the tax or any rate resulting from
subsequent decreases may not exceed the lesser of:
(1) the maximum rate authorized by the district voters
at the election held under Section 8109.352; 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) 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. 8109.354. 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.
SUBCHAPTER I. HOTEL OCCUPANCY TAX
Sec. 8109.401. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) In this subchapter:
(1) a reference in Subchapter A, Chapter 351, Tax
Code, to a municipality is a reference to the district; and
(2) a reference in Subchapter A, Chapter 351, Tax
Code, to the governing body of a municipality is a reference to the
board.
(b) Except as inconsistent with this subchapter, Subchapter
A, Chapter 351, Tax Code, governs a hotel occupancy tax authorized
by this subchapter, including the collection of the tax, subject to
the limitations prescribed by Sections 351.002(b) and (c), Tax
Code.
Sec. 8109.402. TAX AUTHORIZED; USE OF REVENUE. The
district may impose a hotel occupancy tax for any purpose
authorized by Section 351.101, Tax Code.
Sec. 8109.403. TAX RATE. (a) The amount of the hotel
occupancy tax may not exceed the maximum rate provided by Section
351.003(a), Tax Code.
(b) The district may not adopt a hotel occupancy tax at a
rate that would cause the combined rate of all hotel occupancy taxes
imposed by the district and other political subdivisions of this
state at a location in the district to exceed 15 percent. If a
political subdivision's adoption of a hotel occupancy tax rate
causes the combined hotel occupancy tax rate imposed at a location
in the district to exceed 15 percent, the district's hotel
occupancy tax rate in the entire district is automatically reduced
to bring the combined rate imposed at that location down to not more
than 15 percent.
(c) The district shall notify each hotel in the district of
any change in the hotel occupancy tax rate under this section.
(d) Any change in the hotel occupancy tax rate takes effect
on the first day of the next calendar month following the change.
SECTION 3. (a) The legislature validates and confirms all
governmental acts and proceedings of the CLL Municipal Utility
District No. 1 relating to the exclusion of land, the annexation of
land, and the establishment of the district's boundaries that were
taken before the effective date of this Act.
(b) This section does not apply to:
(1) an act or proceeding that was void at the time it
occurred;
(2) an act that was a misdemeanor or felony at the time
it occurred;
(3) an annexation or attempted annexation of land in
the boundaries or extraterritorial jurisdiction of a municipality
that occurred without the consent of the municipality; and
(4) any matter that on the effective date of this Act:
(A) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final court
judgment; or
(B) has been held invalid by a final court
judgment.
SECTION 4. (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 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 are fulfilled
and accomplished.
SECTION 5. 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, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3845 was passed by the House on May
13, 2011, by the following vote: Yeas 139, Nays 5, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3845 on May 27, 2011, by the following vote: Yeas 141, Nays 0,
2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3845 was passed by the Senate, with
amendments, on May 25, 2011, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor