Bill Text: TX SB2536 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the creation of the Howe 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 1-0)
Status: (Introduced - Dead) 2019-05-10 - Recommendations filed with the Senate [SB2536 Detail]
Download: Texas-2019-SB2536-Introduced.html
86R16953 GRM-F | ||
By: Fallon | S.B. No. 2536 |
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relating to the creation of the Howe 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 8100 to read as follows: | ||
CHAPTER 8100. HOWE MUNICIPAL UTILITY DISTRICT NO. 1 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 8100.0101. 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 Howe Municipal Utility | ||
District No. 1. | ||
Sec. 8100.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 8100.0103. 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. 8100.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
8100.0103 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. 8100.0105. 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. 8100.0106. 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. 8100.0201. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of five elected directors. | ||
(b) Except as provided by Section 8100.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 8100.0202. TEMPORARY DIRECTORS. (a) The temporary | ||
board consists of: | ||
(1) Linda Baker; | ||
(2) Cynthia Lowe Bakhashab; | ||
(3) Debra Brown; | ||
(4) Telicia Marie Owens; and | ||
(5) David Lee Taylor. | ||
(b) Temporary directors serve until the earlier of: | ||
(1) the date permanent directors are elected under | ||
Section 8100.0103; 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 8100.0103 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 8100.0103; 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. 8100.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 8100.0302. 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. 8100.0303. 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, | ||
inside or outside the district. | ||
Sec. 8100.0304. 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. 8100.0305. COMPLIANCE WITH AGREEMENT AND MUNICIPAL | ||
CONSENT ORDINANCE OR RESOLUTION. The district shall comply with | ||
the terms of the October 2017 City of Howe and Howe Commercial Ltd. | ||
Chapter 380 Economic Development Program and Agreement, as amended, | ||
and 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. 8100.0306. DIVISION OF DISTRICT. (a) The district may | ||
be divided into two or more new districts only if the district: | ||
(1) has no outstanding bonded debt; and | ||
(2) 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 | ||
8100.0103 to confirm the creation of the district. | ||
(f) An order dividing the district must: | ||
(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 8100.0103. | ||
(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 | ||
8100.0104 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. 8100.0401. 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 8100.0403. | ||
(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. 8100.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 8100.0401, 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. 8100.0403. 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. 8100.0501. 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. 8100.0502. 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. 8100.0503. 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 Howe Municipal Utility District No. 1 | ||
initially includes all the territory contained in the following | ||
area: | ||
BEING A TRACT OF LAND LOCATED IN THE JOSEPH HAYHURST SURVEY, | ||
ABSTRACT No. 530 AND THE JOHN H. MILLER SURVEY, ABSTRACT No. 834, | ||
GRAYSON COUNTY, TEXAS, BEING ALL OF TRACTS ONE AND TWO OF LAND | ||
DESCRIBED IN A DEED TO HOWE COMMERCIAL, LTD., RECORDED IN VOLUME | ||
4046, PAGE 500, DEED RECORDS, GRAYSON COUNTY, TEXAS (D.R.G.C.T.), | ||
AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS | ||
FOLLOWS: | ||
BEGINNING AT THE NORTHEAST CORNER OF SAID HOWE TRACT TWO AND | ||
IN THE WEST RIGHT-OF-WAY LINE OF STATE HIGHWAY No. 5 (S.H. 5), AND | ||
FROM WHICH A 1/2" IRON ROD FOUND BEARS N 24°17'01" W, 18.68 FEET; | ||
THENCE ALONG THE EAST LINE OF SAID HOWE TRACT TWO AND THE WEST | ||
RIGHT-OF-WAY LINE OF SAID S.H. 5 AS FOLLOWS: | ||
1) S 19°49'23" E, 113.08 FEET TO POINT AT THE BEGINNING OF A | ||
CURVE TO THE LEFT: | ||
2) SOUTHEASTERLY, AN ARC LENGTH OF 460.36 FEET ALONG SAID | ||
CURVE TO THE LEFT, HAVING A RADIUS OF 5779.58 FEET, A DELTA ANGLE OF | ||
4°33'50", AND A CHORD BEARING OF S 22°02'08" E, 460.24 FEET TO A | ||
POINT; | ||
3) S 24°23'23" E, 968.50 FEET TO A POINT AT THE BEGINNING OF A | ||
CURVE TO THE RIGHT: | ||
4) SOUTHEASTERLY, AN ARC LENGTH OF 226.37 FEET ALONG SAID | ||
CURVE TO THE RIGHT, HAVING A RADIUS OF 5679.58 FEET, A DELTA ANGLE | ||
OF 2°17'01", AND A CHORD BEARING OF S 23°14'53" E, 226.35 FEET TO A | ||
POINT; | ||
5) S 22°06'22" E, 3924.23 FEET TO THE SOUTHEAST CORNER OF | ||
SAID HOWE TRACT TWO; | ||
THENCE ALONG THE SOUTH LINE OF SAID HOWE TRACT TWO AS FOLLOWS: | ||
1) S 89°04'19" W, 1125.91 FEET TO A 3/4" IRON PIPE FOUND, | ||
SAID IRON PIPE BEING THE NORTHWEST CORNER OF A TRACT OF LAND | ||
DESCRIBED IN A DEED TO OPAL ANDERSON, RECORDED IN VOLUME 2598, PAGE | ||
482, D.R.G.C.T., AND BEING THE NORTHEAST CORNER OF A TRACT OF LAND | ||
DESCRIBED IN A DEED TO CLYDE RAY ASKEW AND DOROTHY J. ASKEW | ||
REVOCABLE LIVING TRUST, RECORDED IN VOLUME 5137, PAGE 478, | ||
D.R.G.C.T.; | ||
2) S 88°50'49" W, ALONG THE NORTH LINE OF SAID ASKEW TRACT, | ||
AT 1213.91 FEET, PASSING THE NORTHEAST CORNER OF A TRACT OF LAND | ||
DESCRIBED IN A DEED TO HSIUTAO LING, YUN HUA LIN, TZU HSIANG HSU, | ||
AND CONNIE L. HSU, RECORDED IN VOLUME 4536, PAGE 179, D.R.G.C.T., | ||
CONTINUING ALONG THE NORTH LINE OF SAID LIANG, LIN, AND HSU TRACT, | ||
IN ALL A TOTAL DISTANCE OF 1513.88 FEET TO A 3/4" IRON ROD FOUND, | ||
SAID IRON ROD BEING THE MOST NORTHERLY NORTHWEST OF SAID LIANG, LIN, | ||
AND HSU TRACT; | ||
3) S 88°57'29" W, 1795.46 FEET TO THE SOUTHWEST CORNER OF | ||
SAID HOWE TRACT TWO AND THE SOUTHEAST CORNER OF SAID HOWE TRACT ONE; | ||
THENCE S 89°17'02" W, ALONG THE SOUTH LINE OF SAID HOWE TRACT | ||
ONE, 645.15 FEET TO THE SOUTHWEST CORNER OF SAID HOWE TRACT ONE AND | ||
BEING IN THE EAST RIGHT-OF-WAY LINE OF INTERSTATE HIGHWAY 75 (I.H. | ||
75)(A VARIABLE WIDTH RIGHT-OF-WAY), FROM WHICH A RAILROAD SPIKE | ||
FOUND BEARS S 52°24'30" W, 1.41 FEET; | ||
THENCE ALONG THE WEST LINE OF SAID HOWE TRACT ONE AND THE EAST | ||
RIGHT-OF-WAY LINE SAID I.H. 75 AS FOLLOWS: | ||
1) N 25°42'58" W, 22.05 FEET TO A POINT; | ||
2) N 41°48'58" W, 180.40 FEET TO A POINT FROM WHICH THE | ||
REMAINS OF A CONCRETE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT) | ||
MONUMENT FOUND BEARS S 17°52' E, 0.8 FEET; | ||
3) N 25°42'58"W, 695.20 FEET TO A POINT FROM WHICH THE | ||
REMAINS OF A CONCRETE TXDOT MONUMENT FOUND BEARS S 55°25' E, 0.8 | ||
FEET; | ||
4) N 28°34'58"W, 801.00 FEET TO A POINT FROM WHICH THE | ||
REMAINS OF A CONCRETE TXDOT MONUMENT FOUND BEARS S 21°07' E, 0.7 | ||
FEET; | ||
5) N 25°42'57"W, 397.69 FEET TO A 1" IRON PIPE FOUND, SAID | ||
IRON PIPE FOUND BEING THE SOUTHWEST CORNER OF A TRACT OF LAND | ||
DESCRIBED IN A DEED TO GEORGE F. MIXON, JR., THE ESTATE OF GEORGE F. | ||
MIXON, SR., MAUDE L. DIXON, GEORGE F. MIXON, III, CYNTHIA MIXON | ||
BYNUM, & MARJORIE E. MIXON, RECORDED IN VOLUME 1756, PAGE 789, | ||
D.R.G.C.T.; | ||
THENCE N 00°57'05"W, DEPARTING THE EAST RIGHT-OF-WAY LINE OF | ||
SAID I.H. 75, ALONG A SOUTH LINE OF SAID MIXON TRACT, A DISTANCE OF | ||
195.61 FEET TO A POINT; | ||
THENCE N 89°09'02"E, CONTINUING ALONG A SOUTH LINE OF SAID | ||
MIXON TRACT, 1608.51 FEET TO THE SOUTHEAST CORNER OF SAID MIXON | ||
TRACT, THE NORTHEAST CORNER OF SAID HOWE TRACT ONE, AND IN THE WEST | ||
LINE OF SAID HOWE TRACT TWO; | ||
N 00°45'42"W, ALONG THE WEST LINE OF SAID HOWE TRACT TWO, THE | ||
EAST LINE OF SAID MIXON TRACT, AND THE EAST LINE OF A TRACT OF LAND | ||
DESCRIBED IN A DEED AS LOT 5 TO G. WARD PAXTON FLP II, LTD., RECORDED | ||
IN VOLUME 4896, PAGE 246, D.R.G.C.T., 3253.45 FEET TO THE NORTHWEST | ||
CORNER OF SAID HOWE TRACT TWO AND BEING THE SOUTHWEST CORNER OF A | ||
TRACT OF LAND DESCRIBED IN A DEED AS LOT 8 TO SAID G. WARD PAXTON FLP | ||
II, LTD., RECORDED IN VOLUME 4896, PAGE 246, D.R.G.C.T.; | ||
N 89°10'53"E, ALONG THE NORTH LINE OF SAID HOWE TRACT TWO, | ||
2328.21 FEET TO THE PLACE OF BEGINNING AND CONTAINING 468.939 ACRES | ||
(20,426,981 SQ. FT.) OF LAND, MORE OR LESS. | ||
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 | ||
8100, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 8100.0307 to read as follows: | ||
Sec. 8100.0307. 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, 2019. |