Bill Text: TX HB4334 | 2017-2018 | 85th Legislature | Enrolled
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.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4334 Detail]
Download: Texas-2017-HB4334-Enrolled.html
H.B. No. 4334 |
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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 [ |
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(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 [ |
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(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 |