Bill Text: TX HB5369 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the creation of the Sandow 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: (Passed) 2023-06-11 - Effective immediately [HB5369 Detail]
Download: Texas-2023-HB5369-Enrolled.html
H.B. No. 5369 |
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relating to the creation of the Sandow 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 7986A to read as follows: | ||
CHAPTER 7986A. SANDOW MUNICIPAL UTILITY DISTRICT NO. 1 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7986A.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 Sandow Municipal Utility | ||
District No. 1. | ||
Sec. 7986A.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 7986A.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. 7986A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
7986A.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 as required by | ||
applicable law. | ||
Sec. 7986A.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. 7986A.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. 7986A.0201. GOVERNING BODY; TERMS. (a) The district | ||
is governed by a board of five elected directors. | ||
(b) Except as provided by Section 7986A.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 7986A.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 7986A.0103; 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 7986A.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 7986A.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. 7986A.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 7986A.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. 7986A.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. 7986A.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. 7986A.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. | ||
Sec. 7986A.0306. DIVISION OF DISTRICT. (a) 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. | ||
(b) An order dividing a district may create one or more new | ||
districts and may provide for the continuation of the district. | ||
(c) An order dividing the district shall: | ||
(1) name any new district; | ||
(2) include the metes and bounds description of the | ||
territory of each of the districts; | ||
(3) appoint temporary directors for any new district; | ||
and | ||
(4) provide for the division of assets and liabilities | ||
between the districts. | ||
(d) The board may adopt an order dividing the district | ||
before or after the date the board holds an election to confirm the | ||
district's creation. | ||
(e) The district may be divided only if the district: | ||
(1) has never issued any bonds; and | ||
(2) is not imposing ad valorem taxes. | ||
(f) A 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. | ||
(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) 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. | ||
(i) A new district created by the division of the district | ||
shall hold a confirmation and directors' election. | ||
(j) If the creation of the new district is confirmed, the | ||
new district shall provide the election date and results to the | ||
commission. | ||
(k) A 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. | ||
(l) The district may continue to rely on confirmation, | ||
directors', bond, or tax elections held prior to the division. | ||
(m) Municipal consent to the creation of the district and to | ||
the inclusion of land in the district 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. 7986A.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 7986A.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. 7986A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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 Sandow Municipal Utility District No. 1 | ||
initially includes all the territory contained in the following | ||
area: | ||
BEING A 201.0 ACRES TRACT OF LAND SITUATED IN THE ELIZABETH | ||
MILBOURN SURVEY, ABSTRACT 414 AND OLIVER FARNSWORTH SURVEY, | ||
ABSTRACT 163, MILAM COUNTY, TEXAS; AND BEING A PORTION OF A CALLED | ||
15,022.733 ACRES TRACT OF LAND DESIGNATED AS "TRACT 018-R3" AND | ||
DESCRIBED TO SLR PROPERTY I, LP, AS SHOWN ON INSTRUMENT RECORDED | ||
UNDER DOCUMENT NO. 2021-5108 OF THE OFFICIAL PUBLIC RECORDS OF | ||
MILAM COUNTY, TEXAS (O.P.R.M.C.T.); AND BEING MORE PARTICULARLY | ||
DESCRIBED AS FOLLOWS: | ||
BEGINNING IN THE WEST BOUNDARY LINE OF SAID TRACT 018-R3 AND | ||
FOR THE SOUTHEAST CORNER OF A CALLED 61.006 ACRES TRACT OF LAND | ||
DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON INSTRUMENT RECORDED UNDER | ||
DOCUMENT NO. 2022-5130 OF THE OFFICIAL PUBLIC RECORDS OF MILAM | ||
COUNTY, TEXAS (O.P.R.M.C.T.); | ||
THENCE, WITH SAID WEST BOUNDARY LINE OF TRACT 018-R3, SAME | ||
BEING THE EAST BOUNDARY LINE OF SAID 61.006 ACRES TRACT, THE | ||
FOLLOWING TWO (2) COURSES AND DISTANCES: | ||
1. NORTH 21°10'24" WEST, A DISTANCE OF 2,162.68 FEET; | ||
2. NORTH 68°55'41" EAST, A DISTANCE OF 1,308.45 FEET; | ||
THENCE, NORTH 21°29'53" WEST, CONTINUING WITH SAID WEST | ||
BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID EAST BOUNDARY LINE OF | ||
THE 61.006 ACRES TRACT, THE EAST BOUNDARY LINE OF A CALLED 28.718 | ||
ACRES TRACT OF LAND DESCRIBED TO RUSSELL D. LEWIS AND LISA LEWIS, AS | ||
SHOWN ON INSTRUMENT RECORDED UNDER DOCUMENT NO. 2020-1490 OF THE | ||
O.P.R.M.C.T., AND THE EAST BOUNDARY LINE OF A CALLED 20.0 ACRES | ||
TRACT OF LAND DESCRIBED TO KREGG YOUNT, AS SHOWN ON INSTRUMENT | ||
RECORDED UNDER DOCUMENT NO. 1129-451 OF THE O.P.R.M.C.T., A | ||
DISTANCE OF 1,916.67 FEET TO THE SOUTH BOUNDARY LINE OF A CALLED | ||
27.527 ACRES TRACT OF LAND DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON | ||
INSTRUMENT RECORDED UNDER DOCUMENT NO. 2022-5130 OF THE | ||
O.P.R.M.C.T.; | ||
THENCE, NORTH 69°10'24" EAST, CONTINUING WITH SAID WEST | ||
BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID SOUTH BOUNDARY LINE | ||
OF 27.527 ACRES TRACT AND THE SOUTH BOUNDARY LINE OF A CALLED 73.703 | ||
ACRES TRACT OF LAND DESCRIBED TO WILFORD ALLEN TATE, AS SHOWN ON | ||
INSTRUMENT RECORDED UNDER DOCUMENT NO. 1264-251 OF THE | ||
O.P.R.M.C.T., A DISTANCE OF 1,809.84 FEET TO THE SOUTHEAST CORNER | ||
OF SAID 73.703 ACRES TRACT; | ||
THENCE, NORTH 20°34'38" WEST, CONTINUING WITH SAID WEST | ||
BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE EAST BOUNDARY LINE OF | ||
SAID 73.703 ACRES TRACT, A DISTANCE OF 996.83 FEET TO THE SOUTHWEST | ||
CORNER OF A CALLED 150.0 ACRES TRACT OF LAND DESCRIBED TO HOBBS | ||
MARTIN D ESTATE (RECORDING INFORMATION UNKNOWN); | ||
THENCE, NORTH 68°13'17" EAST, DEPARTING SAID EAST BOUNDARY | ||
LINE OF THE 73.703 ACRES TRACT OF LAND, CONTINUING WITH SAID WEST | ||
BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE SOUTH BOUNDARY LINE OF | ||
SAID 150.0 ACRES TRACT, DISTANCE OF 1,314.13 FEET TO THE SOUTHEAST | ||
CORNER OF SAID 150.0 ACRE TRACT; | ||
THENCE, DEPARTING SAID WEST BOUNDARY LINE OF TRACT 018-R3 AND | ||
SAID SOUTH BOUNDARY LINE OF THE 150.0 ACRES TRACT, OVER AND ACROSS | ||
SAID TRACT 018-R3, THE FOLLOWING THREE (3) COURSES AND DISTANCES: | ||
1. SOUTH 20°34'38" EAST, A DISTANCE OF 1,234.87 FEET; | ||
2. SOUTH 25°30'16" WEST, A DISTANCE OF 3,635.53 FEET; | ||
3. SOUTH 31°36'25" WEST, A DISTANCE OF 2,227.86 FEET TO THE POINT | ||
OF BEGINNING AND CONTAINING 201.0 ACRES OF LAND, MORE OR LESS, IN | ||
MILAM COUNTY, TEXAS. THIS DOCUMENT WAS PREPARED IN THE OFFICE OF | ||
KIMLEY-HORN INC. IN AUSTIN, 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 | ||
7986A, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 7986A.0307 to read as | ||
follows: | ||
Sec. 7986A.0307. 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 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, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 5369 was passed by the House on May 6, | ||
2023, by the following vote: Yeas 105, Nays 29, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 5369 was passed by the Senate on May | ||
21, 2023, by the following vote: Yeas 26, Nays 4, 1 present, not | ||
voting. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |