By: S. Davis of Harris H.B. No. 3943
(Senate Sponsor - Whitmire)
(In the Senate - Received from the House May 14, 2013;
May 14, 2013, read first time and referred to Committee on
Intergovernmental Relations; May 17, 2013, reported favorably by
the following vote: Yeas 3, Nays 0; May 17, 2013, sent to
printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Harris County Municipal Utility
District No. 537; 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 8488 to read as follows:
CHAPTER 8488. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 537
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8488.001. 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 Harris County Municipal
Utility District No. 537.
Sec. 8488.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8488.003. 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. 8488.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 8488.003
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. 8488.005. 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. 8488.006. 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. 8488.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8488.052, directors serve
staggered four-year terms.
Sec. 8488.052. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Michael Keegan;
(2) Russ Bynum;
(3) Denise Traylor;
(4) Darryl Robinson; and
(5) Deborah Yahner.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8488.003; or
(2) September 1, 2017.
(c) If permanent directors have not been elected under
Section 8488.003 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 8488.003; 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. 8488.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8488.102. 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. 8488.103. 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. 8488.104. APPROVAL OF ROAD PROJECT. (a) The district
may not undertake a road project authorized by Section 8488.103
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. 8488.105. 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. 8488.106. 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 8488.103; or
(2) a recreational facility as defined by Section
49.462, Water Code.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8488.151. 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 8488.153.
(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.
Sec. 8488.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8488.151, 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. 8488.153. 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. 8488.201. 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. 8488.202. 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. 8488.203. 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 Harris County Municipal Utility District No.
537 initially includes all the territory contained in the following
area:
BEGINNING at a point in the North right-of-way line of Old Katy Road
(80 feet wide), said point marks the Southwest corner of that
certain called 0.6339 acre tract recorded under Harris County
Clerk's File No. 20100020050 and the herein described tract;
THENCE, North 01°14'41" West, at 100.00 feet pass the Southeast
corner of Unrestricted Reserve "A", Resource Centre, LTD, Subd., as
recorded in Vol. 314, Pg. 111 H.C.M.R. and continuing a total
distance of 1280.76 feet to a point in the South line of a tract of
land conveyed to Southern Pacific Railroad Co., by deed recorded
under H.C.C.F. No. B960751, for the Northeast corner of said
Reserve "A", said point also marks the Northwest corner of the
herein described tract;
THENCE, North 88°01'36" East, along the South line of said Southern
Pacific Railroad Co. tract, a distance of 551.31 feet to an angle
point;
THENCE, North 87°59'38" East, continuing along the South line of
said Southern Pacific Railroad Co. tract, a distance of 312.54 feet
to an angle point;
THENCE, North 88°17'24" East, a distance of 68.60 feet to a point in
the Southwest right-of-way line of Southern Pacific Transportation
Co. Railroad (100 feet wide), for the Northeast corner of the herein
described tract;
THENCE, South 51°45'21" East, along the Southwest right-of-way line
of said Southern Pacific R.R., a distance of 857.52 feet to a point
for the Point of Curvature of a curve to the Right;
THENCE, in a Southeasterly direction, continuing along the
Southwest line of said Southern Pacific R.R., with said curve to the
Right having a radius of 905.00 feet, a central angle of 46°24'58",
an arc length of 733.15 and a chord bearing and distance of S
27°13'25" E, 713.27 feet to a point for the Point of Tangency;
THENCE, South 01°14'53" East, along the West line of said Southern
Pacific R.R., a distance of 50.00 feet to a point for the Easterly
most Southeast corner of the herein described tract;
THENCE, South 88°45'07" West, a distance of 198.86 feet to a point
for an interior corner;
THENCE, South 01°14'53" East, a distance of 50.00 feet to a point in
the North right-of-way line of said Old Katy Road for the Southeast
corner of that certain called 0.5825 acre tract (Tr. 2, Pt. 6)
recorded under H.C.C.F. No. 20100020050, said point also marks the
Southeast corner of the herein described tract;
THENCE, South 88°45'07" West, along the North right-of-way line of
Old Katy Road, a distance of 1714.87 feet to the POINT OF BEGINNING
and containing 46.750 acres 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) Section 8488.106, 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 8488, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 8488.106 to read as follows:
Sec. 8488.106. 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 September 1, 2013.
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