Bill Text: TX HB4283 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the conversion of the Grand Northwest Municipal Utility District to the Grand Northwest Municipal Management District; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4283 Detail]
Download: Texas-2017-HB4283-Comm_Sub.html
Bill Title: Relating to the conversion of the Grand Northwest Municipal Utility District to the Grand Northwest Municipal Management District; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4283 Detail]
Download: Texas-2017-HB4283-Comm_Sub.html
By: Oliverson (Senate Sponsor - Kolkhorst) | H.B. No. 4283 | |
(In the Senate - Received from the House May 10, 2017; | ||
May 10, 2017, read first time and referred to Committee on | ||
Administration; May 23, 2017, reported favorably by the following | ||
vote: Yeas 7, Nays 0; May 23, 2017, sent to printer.) | ||
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relating to the conversion of the Grand Northwest Municipal Utility | ||||||
District to the Grand Northwest Municipal Management District; | ||||||
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. The Grand Northwest Municipal Utility District | ||||||
is converted to the Grand Northwest Municipal Management District | ||||||
and is governed by Chapter 3949, Special District Local Laws Code, | ||||||
as added by this Act. | ||||||
SECTION 2. Subtitle C, Title 4, Special District Local Laws | ||||||
Code, is amended by adding Chapter 3949 to read as follows: | ||||||
CHAPTER 3949. GRAND NORTHWEST MUNICIPAL MANAGEMENT DISTRICT | ||||||
SUBCHAPTER A. GENERAL PROVISIONS | ||||||
Sec. 3949.001. DEFINITIONS. In this chapter: | ||||||
(1) "Board" means the district's board of directors. | ||||||
(2) "County" means Harris County. | ||||||
(3) "Director" means a board member. | ||||||
(4) "District" means the Grand Northwest Municipal | ||||||
Management District, formerly the Grand Northwest Municipal | ||||||
Utility District. | ||||||
Sec. 3949.002. NATURE OF DISTRICT; CONVERSION. The Grand | ||||||
Northwest Municipal Management District is a special district | ||||||
created under Section 59, Article XVI, Texas Constitution, as the | ||||||
Grand Northwest Municipal Utility District. The district is | ||||||
converted to a municipal management district known as the Grand | ||||||
Northwest Municipal Management District under the same | ||||||
constitutional authority. | ||||||
Sec. 3949.003. PURPOSE; DECLARATION OF INTENT. (a) The | ||||||
conversion and operation of the district are 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 converting the district to a | ||||||
municipal management 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 conversion and operation of the district are | ||||||
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 conversion or operation 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. 3949.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) | ||||||
The district is converted to a municipal management district 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 operation 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. 3949.005. INITIAL DISTRICT TERRITORY. The district is | ||||||
initially composed of the territory of the former Grand Northwest | ||||||
Municipal Utility District as that territory existed on March 1, | ||||||
2017. | ||||||
Sec. 3949.006. APPLICABILITY OF MUNICIPAL MANAGEMENT | ||||||
DISTRICTS LAW. Except as otherwise provided by this chapter, | ||||||
Chapter 375, Local Government Code, applies to the district. | ||||||
Sec. 3949.007. 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. 3949.051. 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) Directors serve staggered four-year terms. | ||||||
Sec. 3949.052. 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. 3949.053. 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. 3949.054. INITIAL DIRECTORS ON CONVERSION TO | ||||||
MANAGEMENT DISTRICT. (a) Notwithstanding Section 3949.051, on the | ||||||
conversion of the district to a management district the initial | ||||||
board consists of the following directors: | ||||||
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(b) Of the initial directors, the terms of directors | ||||||
appointed for positions one, two, and three expire May 14, 2018, and | ||||||
the terms of directors appointed for positions four and five expire | ||||||
May 12, 2020. | ||||||
(c) This section expires September 1, 2020. | ||||||
SUBCHAPTER C. POWERS AND DUTIES | ||||||
Sec. 3949.101. GENERAL POWERS AND DUTIES. The district has | ||||||
the powers and duties necessary to accomplish the purposes | ||||||
described by this chapter. | ||||||
Sec. 3949.102. 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. 3949.103. 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. 3949.104. 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. 3949.105. 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. 3949.106. ECONOMIC DEVELOPMENT. (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. 3949.107. 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. 3949.108. ANNEXATION OF LAND. The district may annex | ||||||
land as provided by Subchapter J, Chapter 49, Water Code. | ||||||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS | ||||||
Sec. 3949.151. 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. 3949.152. 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. 3949.153. 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. 3949.154. 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. | ||||||
SUBCHAPTER E. TAXES AND BONDS | ||||||
Sec. 3949.201. 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 3949.203. | ||||||
(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. 3949.202. OPERATION AND MAINTENANCE TAX. (a) If | ||||||
authorized by a majority of the district voters voting at an | ||||||
election held in accordance with Section 3949.201, 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. 3949.203. 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. 3949.204. 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. 3949.205. 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. DISSOLUTION AND MUNICIPAL ANNEXATION | ||||||
Sec. 3949.251. MUNICIPAL ANNEXATION; DISSOLUTION. (a) The | ||||||
district is a "water or sewer district" under 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 3. The Grand Northwest Municipal Management | ||||||
District retains all rights, powers, privileges, authority, | ||||||
duties, and functions that the Grand Northwest Municipal Utility | ||||||
District had before the effective date of this Act, except as | ||||||
otherwise expressly provided by Chapter 3949, Special District | ||||||
Local Laws Code, as added by this Act. | ||||||
SECTION 4. (a) The legislature validates and confirms all | ||||||
governmental acts and proceedings of the Grand Northwest Municipal | ||||||
Utility 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, | ||||||
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 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, 2017. | ||||||
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