Bill Text: TX HB4335 | 2017-2018 | 85th Legislature | Enrolled

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Bill Title: Relating to the creation of the Willacy County Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Bipartisan Bill

Status: (Enrolled - Dead) 2017-06-12 - Effective on . . . . . . . . . . . . . . . [HB4335 Detail]

Download: Texas-2017-HB4335-Enrolled.html

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H.B. No. 4335

relating to the creation of the Willacy County Municipal Utility
District No. 1; granting a limited power of eminent domain;
providing authority to issue bonds; 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 8014 to read as follows:
CHAPTER 8014. WILLACY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8014.001. 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 Willacy County Municipal
Utility District No. 1.
Sec. 8014.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8014.003. 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. 8014.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 8014.003
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. 8014.005. 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, or improvement of
macadamized, graveled, or paved roads described by Section 54.234,
Water Code, or improvements, including storm drainage, in aid of
those roads.
Sec. 8014.006. 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. 8014.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8014.052, directors serve
staggered four-year terms.
Sec. 8014.052. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Charles E. Wetegrove;
(2) Raymond F. Wetegrove;
(3) Joseph M. Wetegrove;
(4) Fred Ballard; and
(5) Craig Childs.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8014.003; 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 8014.003 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 8014.003; 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. 8014.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8014.102. 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. 8014.103. 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 commission as required by Section 54.234, Water Code.
Sec. 8014.104. APPROVAL OF ROAD PROJECT. (a) The district
may not undertake a road project authorized by Section 8014.103
unless:
(1) each municipality or county that will operate and
maintain the road has approved the plans and specifications of the
road project, if a municipality or 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. 8014.105. 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. 8014.106. 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;
(2) the district is not imposing ad valorem taxes; and
(3) the requirements of Subsection (k) have been met.
(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 creating 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
8014.003 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 8014.003.
(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) 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 adopts a resolution or order consenting
to the division of the district.
Sec. 8014.107. LIMITATION ON USE OF EMINENT DOMAIN. 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 8014.103; or
(2) a recreational facility as defined by Section
49.462, Water Code.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8014.151. 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. 8014.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8014.151, 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. 8014.153. 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. 8014.201. 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. 8014.202. 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. 8014.203. 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 Willacy County Municipal Utility District
No. 1 initially includes all the territory contained in the
following area:
Tracts 1, 2, 3, 4, & 5, Raymond Estate Reserve out of Share
Number 36, San Juan de Carricitos Grant, recorded in Volume 274,
Pages 106, Official Records, Willacy County, Texas, containing
501.42 acres gross and 497.71 acres net.
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) Section 8014.107, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 8014, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 8014.107 to read as follows:
Sec. 8014.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(c) 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 June 1, 2017, 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 effect on that
date, this Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4335 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. 4335 was passed by the Senate on May
24, 2017, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor