Bill Text: TX HB4334 | 2017-2018 | 85th Legislature | Enrolled

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Bill Title: Relating to certain municipal utility districts; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Sponsorship: Partisan Bill (Republican 2)

Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4334 Detail]

Download: Texas-2017-HB4334-Enrolled.html

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H.B. No. 4334

AN ACT
relating to certain municipal utility districts; granting a limited
power of eminent domain; 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 F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8010 to read as follows:
CHAPTER 8010. LIBERTY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8010.001. 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 Liberty County Municipal
Utility District No. 1.
Sec. 8010.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8010.003. 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. 8010.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 8010.003
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. 8010.005. 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. 8010.006. 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. 8010.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8010.053, directors serve
staggered four-year terms.
Sec. 8010.052. QUALIFICATIONS. Except for temporary
directors appointed under Sections 8010.053(a)(1)-(3), to be
qualified to serve as a director a person must meet the requirements
of Section 54.102, Water Code.
Sec. 8010.053. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) two directors appointed by the Liberty County
Commissioners Court;
(2) two directors appointed by the Cleveland
Independent School District; and
(3) one director appointed by the landowner of a
majority of the assessed real property in the district.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8010.003; 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 8010.003 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 8010.003; or
(2) the fourth anniversary of the date of the
appointment or reappointment.
(d) If Subsection (c) applies, the temporary directors
shall recommend to the commission persons to serve as successor
temporary directors. After reviewing the recommendations, the
commission shall approve or disapprove the successor temporary
directors. If the commission is not satisfied with the
recommendations, the commission may request additional
recommendations. On request by the commission, the temporary
directors shall submit additional recommendations.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8010.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8010.102. 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. 8010.103. 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. 8010.104. 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. 8010.105. 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. 8010.106. APPLICATION OF OTHER LAW. Chapters 232 and
233, Local Government Code, apply to the district. For the purposes
of those chapters, the district may take action in the same manner
as a county.
Sec. 8010.107. DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if:
(1) the district has no outstanding bonded debt; and
(2) the district is not imposing ad valorem taxes.
(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) Any 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
8010.003 to confirm the creation of the district.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between or among the new districts.
(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) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 8010.003.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(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.
(k) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
8010.004 acts as municipal consent to the creation of any new
district created by the division of the district and to the
inclusion of land in the new district.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8010.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 8010.153.
(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.
(d) Before the district may issue bonds, the district must
enter into an agreement with the developer, the Cleveland
Independent School District, and Liberty County for the transfer of
land for use as the sites of facilities for the school district and
for emergency services.
Sec. 8010.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8010.151, 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. 8010.153. 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.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8010.201. 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. 8010.202. 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. 8010.203. 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 Liberty County Municipal Utility District
No. 1 initially includes all the territory contained in the
following area:
A subdivision of 1,329.763 acres of land, being a portion of a
called 4,394.368 acre tract located in the James T. Dunman Survey,
Abstract No. 167, W. McWilkinson Survey, Abstract No. 317, H.T. & B.
R.R. Co. Survey, Abstract No. 443, Liberty County, Texas,
designated as Santa Fe Subdivision, Section One, Save and Except
Reserves A thru S of Santa Fe, Subdivision, Section One, a plat of
said subdivision recorded under Liberty County Clerk's File Number
2017-005075, of the Official Public Records of Liberty County,
Texas; and
Being 3,064.605 acres of land, being a portion of a called
4,394.368 acre tract located in the James T. Dunman Survey,
Abstract No. 167, H.T. & B. R.R. Co. Survey, Abstract No. 443, H.T. &
B. R.R. Co. Survey, Abstract No. 635, W. McWilkinson Survey,
Abstract No. 317, Charles Smith Survey, Abstract No. 350, B.B.B. &
C. Survey, Abstract No. 152, William H.B. Witham Survey, Abstract
No. 395, and the James Darwin Survey, Abstract No. 176, Liberty
County, Texas, a Deed as recorded under Liberty County Clerk's File
Number 2016-013974, of the Official Public Records of Liberty
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
8010, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8010.108 to read as follows:
Sec. 8010.108. 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. (a) Section 8119.002, Special District Local
Laws Code, is amended to read as follows:
Sec. 8119.002. NATURE OF DISTRICT; FINDINGS OF PUBLIC
PURPOSE AND BENEFIT. (a) The district is created to serve a public
purpose and benefit [a municipal utility district in Montgomery
County created under and essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution].
(b) The creation of the district is essential 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.
(b) Subchapter C, Chapter 8119, Special District Local Laws
Code, is amended by adding Sections 8119.104 and 8119.105 to read as
follows:
Sec. 8119.104. 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. 8119.105. 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.
(c) Chapter 8119, Special District Local Laws Code, is
amended by adding Subchapter D to read as follows:
SUBCHAPTER D. BONDS
Sec. 8119.151. 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.
(d) The legal notice of the intention to introduce this
section, setting forth the general substance of this section, has
been published as provided by law, and the notice and a copy of this
section 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.
(e) The governor, one of the required recipients, has
submitted the notice and section to the Texas Commission on
Environmental Quality.
(f) The Texas Commission on Environmental Quality has filed
its recommendations relating to this section with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(g) 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 section are
fulfilled and accomplished.
SECTION 6. (a) Section 8120.002, Special District Local
Laws Code, is amended to read as follows:
Sec. 8120.002. NATURE OF DISTRICT; FINDINGS OF PUBLIC
PURPOSE AND BENEFIT. (a) The district is created to serve a public
purpose and benefit [a municipal utility district in Montgomery
County created under and essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution].
(b) The creation of the district is essential 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.
(b) Subchapter C, Chapter 8120, Special District Local Laws
Code, is amended by adding Sections 8120.104 and 8120.105 to read as
follows:
Sec. 8120.104. 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. 8120.105. 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.
(c) Chapter 8120, Special District Local Laws Code, is
amended by adding Subchapter D to read as follows:
SUBCHAPTER D. BONDS
Sec. 8120.151. 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.
(d) The legal notice of the intention to introduce this
section, setting forth the general substance of this section, has
been published as provided by law, and the notice and a copy of this
section 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.
(e) The governor, one of the required recipients, has
submitted the notice and section to the Texas Commission on
Environmental Quality.
(f) The Texas Commission on Environmental Quality has filed
its recommendations relating to this section with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(g) 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 section are
fulfilled and accomplished.
SECTION 7. 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. 4334 was passed by the House on May
19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4334 on May 26, 2017, by the following vote: Yeas 120, Nays 24,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4334 was passed by the Senate, with
amendments, on May 24, 2017, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor