Bill Text: TX HB4623 | 2021-2022 | 87th Legislature | Comm Sub

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Bill Title: Relating to the creation of the Austin 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: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2021-05-22 - Committee report printed and distributed [HB4623 Detail]

Download: Texas-2021-HB4623-Comm_Sub.html

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By: Leman (Senate Sponsor - Kolkhorst) H.B. No. 4623
(In the Senate - Received from the House May 17, 2021;
May 17, 2021, read first time and referred to Committee on Local
Government; May 22, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 7, Nays 0;
May 22, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4623 By: Eckhardt

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Austin 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 7913A to read as follows:
CHAPTER 7913A. AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7913A.0101. 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 Austin County Municipal
Utility District No. 1.
Sec. 7913A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7913A.0103. CONFIRMATION AND DIRECTOR 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. 7913A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7913A.0103 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. 7913A.0105. 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. 7913A.0106. 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. 7913A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7913A.0202, directors
serve staggered four-year terms.
Sec. 7913A.0202. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, 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 temporary directors the five persons
named in the petition. The commission shall appoint as temporary
directors the five persons named in the petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7913A.0103; or
(2) January 1, 2026.
(c) If permanent directors have not been elected under
Section 7913A.0103 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 7913A.0103; 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. 7913A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7913A.0302. 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. 7913A.0303. 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. 7913A.0304. 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. 7913A.0305. 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7913A.0401. 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
7913A.0403.
(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. 7913A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7913A.0401, 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. 7913A.0403. 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. 7913A.0501. 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. 7913A.0502. 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. 7913A.0503. 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 Austin County Municipal Utility District No.
1 initially includes all the territory contained in the following
area:
A 38.118 acre, or 1,660,419 square feet more or less, tract of land,
being a portion of that residue of called 38.143 acre tract of land
conveyed to David Cryan as described in a deed recorded in Clerk's
File No. 153921 of the Official Records of Austin County, Texas,
situated in the San Felipe de Austin Survey, Abstract 5, in the City
of Sealy, Austin County, Texas. Said 38.118 acre tract being more
fully described as follows, with bearings based on the Texas
Coordinate System of 1983, South Central Zone from the North
American Datum of 1983 (NA2011) epoch 2010.00:
BEGINNING: At an iron rod with aluminum cap found in the
centerline of Harrison Road (30 feet wide) as recorded under Volume
Y, Page 318 of the Deed Records of Austin County, Texas and the
northeast corner of said 38.143 acre tract and for the northeast
corner of the herein described tract and being on the west
right-of-way line of Schmidt Road (60 feet wide) a called 3.946
acres of land as conveyed to the City of Sealy as recorded under
Clerk's File No. 025841 of the official Records of Austin County,
Texas;
THENCE: S 42°42'31" W, along and with the said west right-of-way
line, a distance of 2,864.13 feet to a point to a 1/2 inch iron pipe
with cap stamped "Brown & Gay" found for the southeast corner of the
herein described tract and being on the northeast line of a called
237.88 acre tract as described in a deed to Wal-Mart Stores East, LP
recorded under Clerk's File No. 031749 of the Official Records of
Austin County, Texas;
THENCE: N 47°18'41" W, along and with said northeast line, a
distance of 578.43 feet to an iron rod with a yellow cap stamped
"Pate-Dawson" to be set for the southwest corner of the herein
described tract and the southeast corner of a called 70.00 acres of
land conveyed to David Cryan as recorded in Clerk's File No. 126232
of the Official Records of Austin County, Texas;
THENCE: N 42°39'39" E, along with said north line, a distance of a
distance of 2,865.17 feet to a 1/2 inch iron rod found in the said
centerline of Harrison Road and for the northwest corner of the
herein described tract and the northeast corner of said 70.00
acres;
THENCE: S 47°12'30" E, along said centerline of Harrison Road, a
distance of 580.82 feet to the POINT OF BEGINNING, and containing
38.118 acres in the City of Houston, Harris County, Texas.
A 118.535 acre, or 5,163,385 square feet more or less, tract of
land, being a portion of that residue of called 140.000 acre tract
of land conveyed to Ranch County of Texas, Inc. as described in a
deed recorded in Clerk's File No. 081189 of the Official Records of
Austin County, Texas, and a portion of Tract 1, a residue of a
called 55.3 acres of land conveyed to David Cryan as described in a
deed recorded in Clerk's File No. 164420 of the Official Records of
Austin County, Texas, and all of Tract 2, a called 28.172 acres of
land conveyed to David Cryan as described in a deed recorded in
Clerk's File No. 153921 of the Official Records of Austin County,
Texas, and all of Tract 5, a called 6.1259 acres of land conveyed to
David Cryan as described in a deed recorded in Clerk's File
No. 164420 of the Official Records of Austin County, Texas, and all
of Tract 4, a called 6.1259 acres of land conveyed to David Cryan as
described in a deed recorded in Clerk's File No. 164420 of the
Official Records of Austin County, Texas, and all of Tract 3, a
called 6.1259 acres of land conveyed to David Cryan as described in
a deed recorded in Clerk's File No. 164420 of the Official Records
of Austin County, Texas, and all of Tract 2, a called 6.1259 acres
of land conveyed to David Cryan as described in a deed recorded in
Clerk's File No. 164420 of the Official Records of Austin County,
Texas, and all of Parcel 1, a called 5.452 acres of land conveyed to
David Cryan as described in a deed recorded in Clerk's File
No. 191010 of the Official Records of Austin County, Texas, and all
of Parcel 2, a called 5.350 acres of land conveyed to David Cryan as
described in a deed recorded in Clerk's File No. 191010 of the
Official Records of Austin County, Texas, situated in the San
Felipe de Austin Survey, Abstract 5, in the City of Sealy, Austin
County, Texas. Said 118.535 acre tract being more fully described
as follows, with bearings based on the Texas Coordinate System of
1983, South Central Zone from the North American Datum of 1983
(NA2011) epoch 2010.00:
BEGINNING: At an iron rod with aluminum cap found on the west
right-of-way line of F.M. Highway No. 3013 (width varies) and the
northeast corner of a called 38.69 acre tract of land conveyed to
Jinsung T.E.C. Texas, L.L.C. Texas, L.L.C. as described in a deed
recorded in Clerk's File No. 126413 of the Official Records of
Austin County, Texas, and for the most northerly southeast corner
of the herein described tract;
THENCE: N 47°17'47" W, a distance of 950.10 feet to a 5/8 inch iron
rod found for an interior corner of the herein described tract and
being the northwest corner of said 38.69 acres and on the east line
of said Tract 1, a residue of a called 55.3 acres;
THENCE: S 42°39'37" W, along the common line of said Tract 1, a
residue of a called 55.3 acres and said 38.69 acres, a distance of
1,774.20 feet to an iron rod with aluminum cap found for the
southeast corner of said Tract 1, a residue of a called 55.3 acres
and the southwest corner of said 38.69 acres and for the most
southerly southeast corner of the herein described tract and on the
northerly line of a called 6.362 acres of land conveyed to the City
of Sealy, Texas as recorded in Clerk's File No. 031750 of the
Official Records of Austin County, Texas;
THENCE: N 47°18'41" W, along with said north line, a distance of
1,607.38 feet to an iron rod with aluminum cap found on the east
right-of-way line to Schmidt Road (60 feet wide) a called 3.946
acres of land as conveyed to the City of Sealy as recorded under
Clerk's File No. 025841 of the official Records of Austin County,
Texas, and the southwest corner said Tract 2 of called 28.172 acres
and the southwest corner of the herein described tract;
THENCE: N 42°42'31" E, along the said east right-of-way line and
along said Tract 2 of called 28.172 acres, a distance of 2,864.02
feet to an iron rod with aluminum cap found in the centerline of
Harrison Road (30 feet wide) as recorded under Volume Y, Page 318 of
Deed Records of Austin County, Texas and the northwest corner of
said Tract 2 of called 28.172 acres and the northwest corner of the
herein described tract;
THENCE: S 47°12'30" E, along and with said centerline of Harrison
Road, a distance of 1,921.18 feet to a Mag Nail found for the most
northerly northeast corner of the herein described tract and for
the northeast corner of said Parcel 2 and the northwest corner of
said Residue of called 140.000 acres;
THENCE: S 42°38'14" W, along and with the east line of said Parcel
2, a distance of 736.53 feet to an iron rod with aluminum cap found
for an interior corner of the herein described tract and for the
southeast corner of said Parcel 2;
THENCE: S 47°18'33" E, departing said east line and along and with
the north line of said Parcel 1, a distance of 633.63 feet to an iron
rod with aluminum cap found on the west right-of-way line of said
F.M. No. 3013 and the most southerly northeast corner of the herein
described tract;
THENCE: S 42°39'57" W, a distance of 350.05 feet to the POINT OF
BEGINNING, and containing 118.535 acres in the City of Houston,
Harris 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
7913A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7913A.0306 to read as
follows:
Sec. 7913A.0306. 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 January 1, 2022.
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