Texas 2015 - 84th Regular

Texas House Bill HB4180 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Zerwas (Senate Sponsor - Kolkhorst) H.B. No. 4180
2		-	(In the Senate - Received from the House May 18, 2015;
3		-	May 25, 2015, read first time and referred to Committee on
4		-	Administration; May 26, 2015, reported favorably by the following
5		-	vote: Yeas 7, Nays 0; May 26, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 4180
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the conversion of the Harris-Fort Bend Counties
12	6		Municipal Utility District No. 4 to the Katy Management District
13	7		No. 1; providing authority to issue bonds; providing authority to
14	8		impose assessments, fees, or taxes.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		SECTION 1. The Harris-Fort Bend Counties Municipal Utility
17	11		District No. 4 is converted to the Katy Management District No. 1
18	12		and is governed by Chapter 3935, Special District Local Laws Code,
19	13		as added by this Act.
20	14		SECTION 2. Subtitle C, Title 4, Special District Local Laws
21	15		Code, is amended by adding Chapter 3935 to read as follows:
22	16		CHAPTER 3935. KATY MANAGEMENT DISTRICT NO. 1
23	17		SUBCHAPTER A. GENERAL PROVISIONS
24	18		Sec. 3935.001. DEFINITIONS. In this chapter:
25	19		(1) "Board" means the district's board of directors.
26	20		(2) "City" means the City of Katy.
27	21		(3) "County" means Harris County or Fort Bend County.
28	22		(4) "Director" means a board member.
29	23		(5) "District" means the Katy Management District No.
30	24		1.
31	25		Sec. 3935.002. NATURE OF DISTRICT; CONVERSION. The Katy
32	26		Management District No. 1 is a special district created under
33	27		Section 59, Article XVI, Texas Constitution, as the Harris-Fort
34	28		Bend Counties Municipal Utility District No. 4. The district is
35	29		converted to a municipal management district known as the Katy
36	30		Management District No. 1 under the same constitutional authority.
37	31		Sec. 3935.003. PURPOSE; DECLARATION OF INTENT. (a) The
38	32		conversion and operation of the district are essential to
39	33		accomplish the purposes of Sections 52 and 52-a, Article III, and
40	34		Section 59, Article XVI, Texas Constitution, and other public
41	35		purposes stated in this chapter. By converting the district to a
42	36		municipal management district and in authorizing the city, the
43	37		county, and other political subdivisions to contract with the
44	38		district, the legislature has established a program to accomplish
45	39		the public purposes set out in Section 52-a, Article III, Texas
46	40		Constitution.
47	41		(b) The conversion and operation of the district are
48	42		necessary to promote, develop, encourage, and maintain employment,
49	43		commerce, transportation, housing, tourism, recreation, the arts,
50	44		entertainment, economic development, safety, and the public
51	45		welfare in the district.
52	46		(c) This chapter and the conversion or operation of the
53	47		district may not be interpreted to relieve the city or the county
54	48		from providing the level of services provided as of the effective
55	49		date of the Act enacting this chapter to the area in the district.
56	50		The district is created to supplement and not to supplant city or
57	51		county services provided in the district.
58	52		Sec. 3935.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
59	53		The district is converted to a municipal management district to
60	54		serve a public use and benefit.
61	55		(b) All land and other property included in the district
62	56		will benefit from the improvements and services to be provided by
63	57		the district under powers conferred by Sections 52 and 52-a,
64	58		Article III, and Section 59, Article XVI, Texas Constitution, and
65	59		other powers granted under this chapter.
66	60		(c) The operation of the district is in the public interest
67	61		and is essential to further the public purposes of:
68	62		(1) developing and diversifying the economy of the
69	63		state;
70	64		(2) eliminating unemployment and underemployment; and
71	65		(3) developing or expanding transportation and
72	66		commerce.
73	67		(d) The district will:
74	68		(1) promote the health, safety, and general welfare of
75	69		residents, employers, potential employees, employees, visitors,
76	70		and consumers in the district, and of the public;
77	71		(2) provide needed funding for the district to
78	72		preserve, maintain, and enhance the economic health and vitality of
79	73		the district territory as a community and business center;
80	74		(3) promote the health, safety, welfare, and enjoyment
81	75		of the public by providing pedestrian ways and by landscaping and
82	76		developing certain areas in the district, which are necessary for
83	77		the restoration, preservation, and enhancement of scenic beauty;
84	78		and
85	79		(4) provide for water, wastewater, drainage, road, and
86	80		recreational facilities for the district.
87	81		(e) Pedestrian ways along or across a street, whether at
88	82		grade or above or below the surface, and street lighting, street
89	83		landscaping, parking, and street art objects are parts of and
90	84		necessary components of a street and are considered to be a street
91	85		or road improvement.
92	86		(f) The district will not act as the agent or
93	87		instrumentality of any private interest even though the district
94	88		will benefit many private interests as well as the public.
95	89		Sec. 3935.005. INITIAL DISTRICT TERRITORY. The district is
96	90		initially composed of the territory of the former Harris-Fort Bend
97	91		Counties Municipal Utility District No. 4 as that territory existed
98	92		on March 1, 2015.
99	93		Sec. 3935.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
100	94		DISTRICTS LAW. Except as otherwise provided by this chapter,
101	95		Chapter 375, Local Government Code, applies to the district.
102	96		Sec. 3935.007. CONSTRUCTION OF CHAPTER. This chapter shall
103	97		be liberally construed in conformity with the findings and purposes
104	98		stated in this chapter.
105	99		SUBCHAPTER B. BOARD OF DIRECTORS
106	100		Sec. 3935.051. GOVERNING BODY; TERMS. (a) The district is
107	101		governed by a board of five voting directors who serve staggered
108	102		terms of four years, with two or three directors' terms expiring May
109	103		1 of each even-numbered year.
110	104		(b) The board by resolution may change the number of voting
111	105		directors on the board if the board determines that the change is in
112	106		the best interest of the district. The board may not consist of
113	107		fewer than 5 or more than 11 voting directors.
114	108		Sec. 3935.052. APPOINTMENT OF VOTING DIRECTORS. (a) The
115	109		mayor and members of the governing body of the city shall appoint
116	110		voting directors from persons recommended by the board. A person is
117	111		appointed if a majority of the members of the governing body,
118	112		including the mayor, vote to appoint that person.
119	113		(b) Section 375.063, Local Government Code, does not apply
120	114		to the district.
121	115		Sec. 3935.053. NONVOTING DIRECTORS. The board may appoint
122	116		nonvoting directors to serve at the pleasure of the voting
123	117		directors.
124	118		Sec. 3935.054. QUORUM. For purposes of determining the
125	119		requirements for a quorum of the board, the following are not
126	120		counted:
127	121		(1) a board position vacant for any reason, including
128	122		death, resignation, or disqualification;
129	123		(2) a director who is abstaining from participation in
130	124		a vote because of a conflict of interest; or
131	125		(3) a nonvoting director.
132	126		Sec. 3935.055. COMPENSATION. A director is entitled to
133	127		receive fees of office and reimbursement for actual expenses as
134	128		provided by Section 49.060, Water Code. Sections 375.069 and
135	129		375.070, Local Government Code, do not apply to the board.
136	130		Sec. 3935.056. INITIAL VOTING DIRECTORS ON CONVERSION TO
137	131		MANAGEMENT DISTRICT. (a) On the conversion of the district to a
138	132		management district, the initial board consists of the following
139	133		directors:
140	134		Pos. No. Name of Director Pos. No. Name of Director
141	135		Pos. No. Name of Director
142	136		1. Kenneth Berger 1. Kenneth Berger
143	137		1. Kenneth Berger
144	138		2. Orville Wient 2. Orville Wient
145	139		2. Orville Wient
146	140		3. Robert C. Hargarther 3. Robert C. Hargarther
147	141		3. Robert C. Hargarther
148	142		4. Donald P. Cox 4. Donald P. Cox
149	143		4. Donald P. Cox
150	144		5. Nick Alexander Jr. 5. Nick Alexander Jr.
151	145		5. Nick Alexander Jr.
152	146		(b) Of the initial directors, the terms of directors
153	147		appointed for positions one through three expire May 14, 2016, and
154	148		the terms of directors appointed for positions four and five expire
155	149		May 12, 2018.
156	150		(c) Sections 3935.051 and 3935.052 do not apply to the
157	151		appointment or terms of directors appointed under Subsection (a).
158	152		A director appointed to succeed a director appointed under
159	153		Subsection (a) serves until May 1 of the appropriate year.
160	154		SUBCHAPTER C. POWERS AND DUTIES
161	155		Sec. 3935.101. GENERAL POWERS AND DUTIES. The district has
162	156		the powers and duties necessary to accomplish the purposes
163	157		described by this chapter.
164	158		Sec. 3935.102. IMPROVEMENT PROJECTS AND SERVICES. The
165	159		district may provide, design, construct, acquire, improve,
166	160		relocate, operate, maintain, or finance an improvement project or
167	161		service using any money available to the district, or contract with
168	162		a governmental or private entity to provide, design, construct,
169	163		acquire, improve, relocate, operate, maintain, or finance an
170	164		improvement project or service authorized under this chapter or
171	165		Chapter 375, Local Government Code.
172	166		Sec. 3935.103. MUNICIPAL UTILITY DISTRICT POWERS AND
173	167		DUTIES. The district has the powers and duties provided by the
174	168		general law of this state, including Chapters 49 and 54, Water Code,
175	169		applicable to municipal utility districts created under Section 59,
176	170		Article XVI, Texas Constitution.
177	171		Sec. 3935.104. DEVELOPMENT CORPORATION POWERS. The
178	172		district, using money available to the district, may exercise the
179	173		powers given to a development corporation under Chapter 505, Local
180	174		Government Code, including the power to own, operate, acquire,
181	175		construct, lease, improve, or maintain a project under that
182	176		chapter.
183	177		Sec. 3935.105. NONPROFIT CORPORATION. (a) The board by
184	178		resolution may authorize the creation of a nonprofit corporation to
185	179		assist and act for the district in implementing a project or
186	180		providing a service authorized by this chapter.
187	181		(b) The nonprofit corporation:
188	182		(1) has each power of and is considered to be a local
189	183		government corporation created under Subchapter D, Chapter 431,
190	184		Transportation Code; and
191	185		(2) may implement any project and provide any service
192	186		authorized by this chapter.
193	187		(c) The board shall appoint the board of directors of the
194	188		nonprofit corporation. The board of directors of the nonprofit
195	189		corporation shall serve in the same manner as the board of directors
196	190		of a local government corporation created under Subchapter D,
197	191		Chapter 431, Transportation Code, except that a board member is not
198	192		required to reside in the district.
199	193		Sec. 3935.106. AGREEMENTS; GRANTS. (a) As provided by
200	194		Chapter 375, Local Government Code, the district may make an
201	195		agreement with or accept a gift, grant, or loan from any person.
202	196		(b) The implementation of a project is a governmental
203	197		function or service for the purposes of Chapter 791, Government
204	198		Code.
205	199		Sec. 3935.107. LAW ENFORCEMENT SERVICES. To protect the
206	200		public interest, the district may contract with a qualified party,
207	201		including the county or the city, to provide law enforcement
208	202		services in the district for a fee.
209	203		Sec. 3935.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
210	204		district may join and pay dues to a charitable or nonprofit
211	205		organization that performs a service or provides an activity
212	206		consistent with the furtherance of a district purpose.
213	207		Sec. 3935.109. ECONOMIC DEVELOPMENT. (a) The district may
214	208		engage in activities that accomplish the economic development
215	209		purposes of the district.
216	210		(b) The district may establish and provide for the
217	211		administration of one or more programs to promote state or local
218	212		economic development and to stimulate business and commercial
219	213		activity in the district, including programs to:
220	214		(1) make loans and grants of public money; and
221	215		(2) provide district personnel and services.
222	216		(c) The district may create economic development programs
223	217		and exercise the economic development powers provided to
224	218		municipalities by:
225	219		(1) Chapter 380, Local Government Code; and
226	220		(2) Subchapter A, Chapter 1509, Government Code.
227	221		Sec. 3935.110. PARKING FACILITIES. (a) The district may
228	222		acquire, lease as lessor or lessee, construct, develop, own,
229	223		operate, and maintain parking facilities or a system of parking
230	224		facilities, including lots, garages, parking terminals, or other
231	225		structures or accommodations for parking motor vehicles off the
232	226		streets and related appurtenances.
233	227		(b) The district's parking facilities serve the public
234	228		purposes of the district and are owned, used, and held for a public
235	229		purpose even if leased or operated by a private entity for a term of
236	230		years.
237	231		(c) The district's parking facilities are parts of and
238	232		necessary components of a street and are considered to be a street
239	233		or road improvement.
240	234		(d) The development and operation of the district's parking
241	235		facilities may be considered an economic development program.
242	236		Sec. 3935.111. ANNEXATION OF LAND. The district may annex
243	237		land as provided by Subchapter J, Chapter 49, Water Code.
244	238		Sec. 3935.112. APPROVAL BY CITY. (a) Except as provided by
245	239		Subsection (c), the district must obtain the approval of the city
246	240		for:
247	241		(1) the issuance of bonds;
248	242		(2) the plans and specifications of an improvement
249	243		project financed by bonds; and
250	244		(3) the plans and specifications of an improvement
251	245		project related to the use of land owned by the city, an easement
252	246		granted by the city, or a right-of-way of a street, road, or
253	247		highway.
254	248		(b) The district may not issue bonds until the governing
255	249		body of the city adopts a resolution or ordinance authorizing the
256	250		issuance of the bonds.
257	251		(c) If the district obtains the approval of the city's
258	252		governing body of a capital improvements budget for a period not to
259	253		exceed 10 years, the district may finance the capital improvements
260	254		and issue bonds specified in the budget without further approval
261	255		from the city.
262	256		(d) The governing body of the city:
263	257		(1) is not required to adopt a resolution or ordinance
264	258		to approve plans and specifications described by Subsection (a);
265	259		and
266	260		(2) may establish an administrative process to approve
267	261		plans and specifications described by Subsection (a) without the
268	262		involvement of the governing body.
269	263		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
270	264		Sec. 3935.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
271	265		board by resolution shall establish the number of directors'
272	266		signatures and the procedure required for a disbursement or
273	267		transfer of district money.
274	268		Sec. 3935.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
275	269		The district may acquire, construct, finance, operate, or maintain
276	270		any improvement or service authorized under this chapter or Chapter
277	271		375, Local Government Code, using any money available to the
278	272		district.
279	273		Sec. 3935.153. PETITION REQUIRED FOR FINANCING SERVICES AND
280	274		IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
281	275		service or improvement project with assessments under this chapter
282	276		unless a written petition requesting that service or improvement
283	277		has been filed with the board.
284	278		(b) A petition filed under Subsection (a) must be signed by
285	279		the owners of a majority of the assessed value of real property in
286	280		the district subject to assessment according to the most recent
287	281		certified tax appraisal roll for the county.
288	282		Sec. 3935.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
289	283		The board by resolution may impose and collect an assessment for any
290	284		purpose authorized by this chapter in all or any part of the
291	285		district.
292	286		(b) An assessment, a reassessment, or an assessment
293	287		resulting from an addition to or correction of the assessment roll
294	288		by the district, penalties and interest on an assessment or
295	289		reassessment, an expense of collection, and reasonable attorney's
296	290		fees incurred by the district:
297	291		(1) are a first and prior lien against the property
298	292		assessed;
299	293		(2) are superior to any other lien or claim other than
300	294		a lien or claim for county, school district, or municipal ad valorem
301	295		taxes; and
302	296		(3) are the personal liability of and a charge against
303	297		the owners of the property even if the owners are not named in the
304	298		assessment proceedings.
305	299		(c) The lien is effective from the date of the board's
306	300		resolution imposing the assessment until the date the assessment is
307	301		paid. The board may enforce the lien in the same manner that the
308	302		board may enforce an ad valorem tax lien against real property.
309	303		(d) The board may make a correction to or deletion from the
310	304		assessment roll that does not increase the amount of assessment of
311	305		any parcel of land without providing notice and holding a hearing in
312	306		the manner required for additional assessments.
313	307		Sec. 3935.155. TAX AND ASSESSMENT ABATEMENT. The district
314	308		may designate reinvestment zones and may grant abatements of
315	309		district taxes or assessments on property in the zones.
316	310		SUBCHAPTER E. TAXES AND BONDS
317	311		Sec. 3935.201. ELECTIONS REGARDING TAXES AND BONDS. (a)
318	312		The district may issue, without an election, bonds, notes, and
319	313		other obligations secured by:
320	314		(1) revenue other than ad valorem taxes; or
321	315		(2) contract payments described by Section 3935.203.
322	316		(b) The district must hold an election in the manner
323	317		provided by Chapters 49 and 54, Water Code, to obtain voter approval
324	318		before the district may impose an ad valorem tax or issue bonds
325	319		payable from ad valorem taxes.
326	320		(c) All or any part of any facilities or improvements that
327	321		may be acquired by a district by the issuance of its bonds may be
328	322		submitted as a single proposition or as several propositions to be
329	323		voted on at the election.
330	324		Sec. 3935.202. OPERATION AND MAINTENANCE TAX. (a) If
331	325		authorized by a majority of the district voters voting at an
332	326		election held in accordance with Section 49.107, Water Code, the
333	327		district may impose an operation and maintenance tax on taxable
334	328		property in the district in accordance with that section for any
335	329		district purpose, including to:
336	330		(1) maintain and operate the district;
337	331		(2) construct or acquire improvements; or
338	332		(3) provide a service.
339	333		(b) The board shall determine the tax rate. The rate may not
340	334		exceed the rate approved at the election.
341	335		(c) Section 49.107(h), Water Code, does not apply to the
342	336		district.
343	337		Sec. 3935.203. CONTRACT TAXES. (a) In accordance with
344	338		Section 49.108, Water Code, the district may impose a tax other than
345	339		an operation and maintenance tax and use the revenue derived from
346	340		the tax to make payments under a contract after the provisions of
347	341		the contract have been approved by a majority of the district voters
348	342		voting at an election held for that purpose.
349	343		(b) A contract approved by the district voters may contain a
350	344		provision stating that the contract may be modified or amended by
351	345		the board without further voter approval.
352	346		Sec. 3935.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
353	347		AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
354	348		determined by the board. Section 375.205, Local Government Code,
355	349		does not apply to a loan, line of credit, or other borrowing from a
356	350		bank or financial institution secured by revenue other than ad
357	351		valorem taxes.
358	352		(b) The district may issue bonds, notes, or other
359	353		obligations payable wholly or partly from ad valorem taxes,
360	354		assessments, impact fees, revenue, contract payments, grants, or
361	355		other district money, or any combination of those sources of money,
362	356		to pay for any authorized district purpose.
363	357		(c) The limitation on the outstanding principal amount of
364	358		bonds, notes, and other obligations provided by Section 49.4645,
365	359		Water Code, does not apply to the district.
366	360		Sec. 3935.205. TAXES FOR BONDS. At the time the district
367	361		issues bonds payable wholly or partly from ad valorem taxes, the
368	362		board shall provide for the annual imposition of a continuing
369	363		direct annual ad valorem tax, without limit as to rate or amount,
370	364		for each year that all or part of the bonds are outstanding as
371	365		required and in the manner provided by Sections 54.601 and 54.602,
372	366		Water Code.
373	367		Sec. 3935.206. CITY NOT REQUIRED TO PAY DISTRICT
374	368		OBLIGATIONS. Except as provided by Section 375.263, Local
375	369		Government Code, the city is not required to pay a bond, note, or
376	370		other obligation of the district.
377	371		SECTION 3. The Katy Management District No. 1 retains all
378	372		rights, powers, privileges, authority, duties, and functions that
379	373		the Harris-Fort Bend Counties Municipal Utility District No. 4 had
380	374		before the effective date of this Act, except as otherwise
381	375		expressly provided by Chapter 3935, Special District Local Laws
382	376		Code, as added by this Act.
383	377		SECTION 4. (a) The legislature validates and confirms all
384	378		governmental acts and proceedings of the Harris-Fort Bend Counties
385	379		Municipal Utility District No. 4 that were taken before the
386	380		effective date of this Act.
387	381		(b) This section does not apply to any matter that on the
388	382		effective date of this Act:
389	383		(1) is involved in litigation if the litigation
390	384		ultimately results in the matter being held invalid by a final court
391	385		judgment; or
392	386		(2) has been held invalid by a final court judgment.
393	387		SECTION 5. (a) The legal notice of the intention to
394	388		introduce this Act, setting forth the general substance of this
395	389		Act, has been published as provided by law, and the notice and a
396	390		copy of this Act have been furnished to all persons, agencies,
397	391		officials, or entities to which they are required to be furnished
398	392		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
399	393		Government Code.
400	394		(b) The governor, one of the required recipients, has
401	395		submitted the notice and Act to the Texas Commission on
402	396		Environmental Quality.
403	397		(c) The Texas Commission on Environmental Quality has filed
404	398		its recommendations relating to this Act with the governor,
405	399		lieutenant governor, and speaker of the house of representatives
406	400		within the required time.
407	401		(d) The general law relating to consent by political
408	402		subdivisions to the creation of districts with conservation,
409	403		reclamation, and road powers and the inclusion of land in those
410	404		districts has been complied with.
411	405		(e) All requirements of the constitution and laws of this
412	406		state and the rules and procedures of the legislature with respect
413	407		to the notice, introduction, and passage of this Act have been
414	408		fulfilled and accomplished.
415	409		SECTION 6. This Act takes effect immediately if it receives
416	410		a vote of two-thirds of all the members elected to each house, as
417	411		provided by Section 39, Article III, Texas Constitution. If this
418	412		Act does not receive the vote necessary for immediate effect, this
419	413		Act takes effect September 1, 2015.
420		-	* * * * *
	414	+	______________________________ ______________________________
	415	+	President of the Senate Speaker of the House
	416	+	I certify that H.B. No. 4180 was passed by the House on May
	417	+	15, 2015, by the following vote: Yeas 139, Nays 0, 2 present, not
	418	+	voting.
	419	+	______________________________
	420	+	Chief Clerk of the House
	421	+	I certify that H.B. No. 4180 was passed by the Senate on May
	422	+	27, 2015, by the following vote: Yeas 30, Nays 1.
	423	+	______________________________
	424	+	Secretary of the Senate
	425	+	APPROVED: _____________________
	426	+	Date
	427	+	_____________________
	428	+	Governor
421	429
422	430		Pos. No. Name of Director
423	431
424	432		1. Kenneth Berger
425	433
426	434		2. Orville Wient
427	435
428	436		3. Robert C. Hargarther
429	437
430	438		4. Donald P. Cox
431	439
432	440		5. Nick Alexander Jr.