Bill Text: TX HB4275 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the creation of the Ingleside Municipal Utility District No. 1; providing authority to issue bonds; granting limited power of eminent domain; providing authority to impose assessments, fees, and taxes.
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4275 Detail]
Download: Texas-2017-HB4275-Enrolled.html
H.B. No. 4275 |
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relating to the creation of the Ingleside Municipal Utility | ||
District No. 1; providing authority to issue bonds; granting | ||
limited power of eminent domain; providing authority to impose | ||
assessments, fees, and taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 6, Special District Local Laws | ||
Code, is amended by adding Chapter 7998 to read as follows: | ||
CHAPTER 7998. INGLESIDE MUNICIPAL UTILITY DISTRICT NO. 1 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7998.001. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(3) "Director" means a board member. | ||
(4) "District" means the Ingleside Municipal Utility | ||
District No. 1. | ||
Sec. 7998.002. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 7998.003. 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. 7998.004. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section 7998.003 | ||
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. 7998.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) | ||
The district is created to serve a public purpose and benefit. | ||
(b) The district is created to accomplish the purposes of: | ||
(1) a municipal utility district as provided by | ||
general law and Section 59, Article XVI, Texas Constitution; and | ||
(2) Section 52, Article III, Texas Constitution, that | ||
relate to the construction, acquisition, improvement, operation, | ||
or maintenance of macadamized, graveled, or paved roads, or | ||
improvements, including storm drainage, in aid of those roads. | ||
Sec. 7998.006. 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 made 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 bond for the purposes | ||
for which the district is created or to pay the principal of and | ||
interest on a bond; | ||
(3) right to impose a tax; or | ||
(4) legality or operation. | ||
SUBCHAPTER B. BOARD OF DIRECTORS | ||
Sec. 7998.051. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of five elected directors. | ||
(b) Except as provided by Section 7998.052, directors serve | ||
staggered four-year terms. | ||
Sec. 7998.052. TEMPORARY DIRECTORS. (a) The temporary | ||
board consists of: | ||
(1) Richard Dupriest; | ||
(2) Raymond F. Wetegrove; | ||
(3) Joseph M. Wetegrove; | ||
(4) Jane Helm; and | ||
(5) Steven Ray. | ||
(b) Temporary directors serve until the earlier of: | ||
(1) the date permanent directors are elected under | ||
Section 7998.003; or | ||
(2) the fourth anniversary of the effective date of | ||
the Act enacting this chapter. | ||
(c) If permanent directors have not been elected under | ||
Section 7998.003 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 7998.003; 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 | ||
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. | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 7998.101. GENERAL POWERS AND DUTIES. The district has | ||
the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 7998.102. MUNICIPAL UTILITY DISTRICT POWERS AND | ||
DUTIES. The district has the powers and duties provided by the | ||
general law of this state, including Chapters 49 and 54, Water Code, | ||
applicable to municipal utility districts created under Section 59, | ||
Article XVI, Texas Constitution. | ||
Sec. 7998.103. AUTHORITY FOR ROAD PROJECTS. Under Section | ||
52, Article III, Texas Constitution, the district may design, | ||
acquire, construct, finance, issue bonds for, improve, operate, | ||
maintain, and convey to this state, a county, or a municipality for | ||
operation and maintenance macadamized, graveled, or paved roads, or | ||
improvements, including storm drainage, in aid of those roads. | ||
Sec. 7998.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road | ||
project must meet all applicable construction standards, zoning and | ||
subdivision requirements, and regulations of each municipality in | ||
whose corporate limits or extraterritorial jurisdiction the road | ||
project is located. | ||
(b) If a road project is not located in the corporate limits | ||
or extraterritorial jurisdiction of a municipality, the road | ||
project must meet all applicable construction standards, | ||
subdivision requirements, and regulations of each county in which | ||
the road project is located. | ||
(c) If the state will maintain and operate the road, the | ||
Texas Transportation Commission must approve the plans and | ||
specifications of the road project. | ||
Sec. 7998.105. 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. 7998.106. DIVISION OF DISTRICT. (a) The district may | ||
be divided into two or more districts only if: | ||
(1) the district has no outstanding bonded debt; | ||
(2) the district is not imposing ad valorem taxes; and | ||
(3) the requirements of Subsection (i), as applicable, | ||
are satisfied. | ||
(b) This chapter applies to any new district created by the | ||
division of the district, and a new district has all the powers and | ||
duties of the district. | ||
(c) A new district created by the division of the district | ||
may not, at the time the new district is created, contain any land | ||
outside the area described by Section 2 of the Act enacting this | ||
chapter. | ||
(d) The board, on its own motion or on receipt of a petition | ||
signed by the owner or owners of a majority of the assessed value of | ||
the real property in the district, may adopt an order dividing the | ||
district. | ||
(e) The board may adopt an order dividing the district | ||
before or after the date the board holds an election under Section | ||
7998.003 to confirm the district's creation. | ||
(f) An order dividing the district shall: | ||
(1) name the new district; | ||
(2) include the metes and bounds of each new district; | ||
(3) appoint temporary directors for each new district; | ||
and | ||
(4) provide for the division of assets and liabilities | ||
between the district and each new district. | ||
(g) On or before the 30th day after the date of adoption of | ||
an order dividing the district, the district shall file the order | ||
with the commission and record the order in the real property | ||
records of each county in which the district is located. | ||
(h) A new district created by the division of the district | ||
shall hold a confirmation and directors' election as required by | ||
Section 7998.003. | ||
(i) If the district is located wholly or partly in the | ||
corporate limits or the extraterritorial jurisdiction of a | ||
municipality, the district may not divide under this section unless | ||
the municipality by resolution or ordinance consents to the | ||
division of the district. If the district is not located wholly or | ||
partly in the corporate limits or extraterritorial jurisdiction of | ||
a municipality, the district may not divide under this section | ||
unless the commissioners court of each county in which the district | ||
is wholly or partly located first adopts a resolution or order in | ||
support of the division of the district. | ||
(j) Any new district created by the division of the district | ||
must hold an election as required by this chapter to obtain voter | ||
approval before the district may impose a maintenance tax or issue | ||
bonds payable wholly or partly from ad valorem taxes. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
Sec. 7998.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The | ||
district may issue, without an election, bonds and other | ||
obligations secured by revenue other than ad valorem taxes. | ||
(b) The district must hold an election in the manner | ||
provided by Chapters 49 and 54, Water Code, to obtain voter approval | ||
before the district may impose an ad valorem tax or issue bonds | ||
payable from ad valorem taxes. | ||
(c) The district may not issue bonds payable from ad valorem | ||
taxes to finance a road project unless the issuance is approved by a | ||
vote of a two-thirds majority of the district voters voting at an | ||
election held for that purpose. | ||
Sec. 7998.152. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 7998.151, the district | ||
may impose an operation and maintenance tax on taxable property in | ||
the district in accordance with Section 49.107, Water Code. | ||
(b) The board shall determine the tax rate. The rate may not | ||
exceed the rate approved at the election. | ||
Sec. 7998.153. WATER AND SEWER RATES. Notwithstanding any | ||
other law, the district shall establish the same rates for | ||
residential and commercial classes of customers for the provision | ||
of water and sewer services. For purposes of this section, the | ||
commercial class may not include apartment complexes or other | ||
multifamily dwellings. | ||
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS | ||
Sec. 7998.201. 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, or other district money, or any | ||
combination of those sources, to pay for any authorized district | ||
purpose. | ||
Sec. 7998.202. 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. 7998.203. 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. | ||
SECTION 2. The Ingleside Municipal Utility District No. 1 | ||
initially includes all the territory contained in the following | ||
area: | ||
Being 625 acres, more or less, out of the Wm McDonough Survey, | ||
Abstract 184, the R.S. Williamson Survey, Abstract 283, the Edmond | ||
St. John Survey, Abstract 250, the Louis Von Zacharias Survey, | ||
Abstract 272, and the John Robinson Survey, Abstract 226, all | ||
tracts located in the City of Ingleside, San Patricio 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, 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 4. (a) If this Act does not receive a two-thirds | ||
vote of all the members elected to each house, Subchapter C, Chapter | ||
7998, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 7998.107 to read as follows: | ||
Sec. 7998.107. NO EMINENT DOMAIN POWER. The district may | ||
not exercise the power of eminent domain. | ||
(b) This section is not intended to be an expression of a | ||
legislative interpretation of the requirements of Section 17(c), | ||
Article I, Texas Constitution. | ||
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, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 4275 was passed by the House on May | ||
19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 4275 was passed by the Senate on May | ||
24, 2017, by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |