Texas 2015 - 84th Regular

Texas Senate Bill SB2074 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Campbell S.B. No. 2074
2		-	(Isaac)
	1	+	S.B. No. 2074
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		relating to the creation of the Legacy Municipal Utility District
7	5		No. 1; granting a limited power of eminent domain; providing
8	6		authority to issue bonds; providing authority to impose
9	7		assessments, fees, and taxes.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Subtitle F, Title 6, Special District Local Laws
12	10		Code, is amended by adding Chapter 7957 to read as follows:
13	11		CHAPTER 7957. LEGACY MUNICIPAL UTILITY DISTRICT NO. 1
14	12		SUBCHAPTER A. GENERAL PROVISIONS
15	13		Sec. 7957.001. DEFINITIONS. In this chapter:
16	14		(1) "Board" means the district's board of directors.
17	15		(2) "Commission" means the Texas Commission on
18	16		Environmental Quality.
19	17		(3) "Director" means a board member.
20	18		(4) "District" means the Legacy Municipal Utility
21	19		District No. 1.
22	20		Sec. 7957.002. NATURE OF DISTRICT. The district is a
23	21		municipal utility district created under Section 59, Article XVI,
24	22		Texas Constitution.
25	23		Sec. 7957.003. CONFIRMATION AND DIRECTORS' ELECTION
26	24		REQUIRED. The temporary directors shall hold an election to
27	25		confirm the creation of the district and to elect five permanent
28	26		directors as provided by Section 49.102, Water Code.
29	27		Sec. 7957.004. CONSENT OF MUNICIPALITY REQUIRED. The
30	28		temporary directors may not hold an election under Section 7957.003
31	29		until each municipality in whose corporate limits or
32	30		extraterritorial jurisdiction the district is located has
33	31		consented by ordinance or resolution to the creation of the
34	32		district and to the inclusion of land in the district.
35	33		Sec. 7957.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
36	34		(a) The district is created to serve a public purpose and benefit.
37	35		(b) The district is created to accomplish the purposes of:
38	36		(1) a municipal utility district as provided by
39	37		general law and Section 59, Article XVI, Texas Constitution; and
40	38		(2) Section 52, Article III, Texas Constitution, that
41	39		relate to the construction, acquisition, improvement, operation,
42	40		or maintenance of macadamized, graveled, or paved roads, or
43	41		improvements, including storm drainage, in aid of those roads.
44	42		Sec. 7957.006. INITIAL DISTRICT TERRITORY. (a) The
45	43		district is initially composed of the territory described by
46	44		Section 2 of the Act enacting this chapter.
47	45		(b) The boundaries and field notes contained in Section 2 of
48	46		the Act enacting this chapter form a closure. A mistake made in the
49	47		field notes or in copying the field notes in the legislative process
50	48		does not affect the district's:
51	49		(1) organization, existence, or validity;
52	50		(2) right to issue any type of bond for the purposes
53	51		for which the district is created or to pay the principal of and
54	52		interest on a bond;
55	53		(3) right to impose a tax; or
56	54		(4) legality or operation.
57	55		SUBCHAPTER B. BOARD OF DIRECTORS
58	56		Sec. 7957.051. GOVERNING BODY; TERMS. (a) The district is
59	57		governed by a board of five elected directors.
60	58		(b) Except as provided by Section 7957.052, directors serve
61	59		staggered four-year terms.
62	60		Sec. 7957.052. TEMPORARY DIRECTORS. (a) On or after the
63	61		effective date of the Act enacting this chapter, the owner or owners
64	62		of a majority of the assessed value of the real property in the
65	63		district may submit a petition to the commission requesting that
66	64		the commission appoint as temporary directors the five persons
67	65		named in the petition. The commission shall appoint as temporary
68	66		directors the five persons named in the petition.
69	67		(b) Temporary directors serve until the earlier of:
70	68		(1) the date permanent directors are elected under
71	69		Section 7957.003; or
72	70		(2) the fourth anniversary of the effective date of
73	71		the Act enacting this chapter.
74	72		(c) If permanent directors have not been elected under
75	73		Section 7957.003 and the terms of the temporary directors have
76	74		expired, successor temporary directors shall be appointed or
77	75		reappointed as provided by Subsection (d) to serve terms that
78	76		expire on the earlier of:
79	77		(1) the date permanent directors are elected under
80	78		Section 7957.003; or
81	79		(2) the fourth anniversary of the date of the
82	80		appointment or reappointment.
83	81		(d) If Subsection (c) applies, the owner or owners of a
84	82		majority of the assessed value of the real property in the district
85	83		may submit a petition to the commission requesting that the
86	84		commission appoint as successor temporary directors the five
87	85		persons named in the petition. The commission shall appoint as
88	86		successor temporary directors the five persons named in the
89	87		petition.
90	88		SUBCHAPTER C. POWERS AND DUTIES
91	89		Sec. 7957.101. GENERAL POWERS AND DUTIES. The district has
92	90		the powers and duties necessary to accomplish the purposes for
93	91		which the district is created.
94	92		Sec. 7957.102. MUNICIPAL UTILITY DISTRICT POWERS AND
95	93		DUTIES. The district has the powers and duties provided by the
96	94		general law of this state, including Chapters 49 and 54, Water Code,
97	95		applicable to municipal utility districts created under Section 59,
98	96		Article XVI, Texas Constitution.
99	97		Sec. 7957.103. AUTHORITY FOR ROAD PROJECTS. Under Section
100	98		52, Article III, Texas Constitution, the district may design,
101	99		acquire, construct, finance, issue bonds for, improve, operate,
102	100		maintain, and convey to this state, a county, or a municipality for
103	101		operation and maintenance macadamized, graveled, or paved roads, or
104	102		improvements, including storm drainage, in aid of those roads.
105	103		Sec. 7957.104. ROAD STANDARDS AND REQUIREMENTS. (a) A
106	104		road project must meet all applicable construction standards,
107	105		zoning and subdivision requirements, and regulations of each
108	106		municipality in whose corporate limits or extraterritorial
109	107		jurisdiction the road project is located.
110	108		(b) If a road project is not located in the corporate limits
111	109		or extraterritorial jurisdiction of a municipality, the road
112	110		project must meet all applicable construction standards,
113	111		subdivision requirements, and regulations of each county in which
114	112		the road project is located.
115	113		(c) If the state will maintain and operate the road, the
116	114		Texas Transportation Commission must approve the plans and
117	115		specifications of the road project.
118	116		Sec. 7957.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
119	117		OR RESOLUTION. The district shall comply with all applicable
120	118		requirements of any ordinance or resolution that is adopted under
121	119		Section 54.016 or 54.0165, Water Code, and that consents to the
122	120		creation of the district or to the inclusion of land in the
123	121		district.
124	122		Sec. 7957.106. DIVISION OF DISTRICT. (a) The district may
125	123		be divided into two or more districts only if:
126	124		(1) the district has no outstanding bonded debt;
127	125		(2) the district is not imposing ad valorem taxes; and
128	126		(3) the requirements of Subsection (i), as applicable,
129	127		are satisfied.
130	128		(b) This chapter applies to any new district created by the
131	129		division of the district, and a new district has all the powers and
132	130		duties of the district.
133	131		(c) A new district created by the division of the district
134	132		may not, at the time the new district is created, contain any land
135	133		outside the area described by Section 2 of the Act creating this
136	134		chapter.
137	135		(d) The board, on its own motion or on receipt of a petition
138	136		signed by the owner or owners of a majority of the assessed value of
139	137		the real property in the district, may adopt an order dividing the
140	138		district.
141	139		(e) The board may adopt an order dividing the district
142	140		before or after the date the board holds an election under Section
143	141		7957.003 to confirm the district's creation.
144	142		(f) An order dividing the district shall:
145	143		(1) name the new district;
146	144		(2) include the metes and bounds of each new district;
147	145		(3) appoint temporary directors for each new district;
148	146		and
149	147		(4) provide for the division of assets and liabilities
150	148		between the district and each new district.
151	149		(g) On or before the 30th day after the date of adoption of
152	150		an order dividing the district, the district shall file the order
153	151		with the Texas Commission on Environmental Quality and record the
154	152		order in the real property records of each county in which the
155	153		district is located.
156	154		(h) A new district created by the division of the district
157	155		shall hold a confirmation and directors' election as required by
158	156		Section 7957.003.
159	157		(i) If the district is located wholly or partly in the
160	158		corporate limits or the extraterritorial jurisdiction of a
161	159		municipality, the district may not divide under this section unless
162	160		the municipality by resolution or ordinance consents to the
163	161		division of the district. If the district is not located wholly or
164	162		partly in the corporate limits or extraterritorial jurisdiction of
165	163		a municipality, the district may not divide under this section
166	164		unless the commissioners court of each county in which the district
167	165		is wholly or partly located first adopts a resolution or order in
168	166		support of the division of the district.
169	167		(j) Any new district created by the division of the district
170	168		must hold an election as required by this chapter to obtain voter
171	169		approval before the district may impose a maintenance tax or issue
172	170		bonds payable wholly or partly from ad valorem taxes.
173	171		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
174	172		Sec. 7957.151. ELECTIONS REGARDING TAXES OR BONDS.
175	173		(a) The district may issue, without an election, bonds and other
176	174		obligations secured by:
177	175		(1) revenue other than ad valorem taxes; or
178	176		(2) contract payments described by Section 7957.153.
179	177		(b) The district must hold an election in the manner
180	178		provided by Chapters 49 and 54, Water Code, to obtain voter approval
181	179		before the district may impose an ad valorem tax or issue bonds
182	180		payable from ad valorem taxes.
183	181		(c) The district may not issue bonds payable from ad valorem
184	182		taxes to finance a road project unless the issuance is approved by a
185	183		vote of a two-thirds majority of the district voters voting at an
186	184		election held for that purpose.
187	185		Sec. 7957.152. OPERATION AND MAINTENANCE TAX. (a) If
188	186		authorized at an election held under Section 7957.151, the district
189	187		may impose an operation and maintenance tax on taxable property in
190	188		the district in accordance with Section 49.107, Water Code.
191	189		(b) The board shall determine the tax rate. The rate may not
192	190		exceed the rate approved at the election.
193	191		Sec. 7957.153. CONTRACT TAXES. (a) In accordance with
194	192		Section 49.108, Water Code, the district may impose a tax other than
195	193		an operation and maintenance tax and use the revenue derived from
196	194		the tax to make payments under a contract after the provisions of
197	195		the contract have been approved by a majority of the district voters
198	196		voting at an election held for that purpose.
199	197		(b) A contract approved by the district voters may contain a
200	198		provision stating that the contract may be modified or amended by
201	199		the board without further voter approval.
202	200		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
203	201		Sec. 7957.201. AUTHORITY TO ISSUE BONDS AND OTHER
204	202		OBLIGATIONS. The district may issue bonds or other obligations
205	203		payable wholly or partly from ad valorem taxes, impact fees,
206	204		revenue, contract payments, grants, or other district money, or any
207	205		combination of those sources, to pay for any authorized district
208	206		purpose.
209	207		Sec. 7957.202. TAXES FOR BONDS. At the time the district
210	208		issues bonds payable wholly or partly from ad valorem taxes, the
211	209		board shall provide for the annual imposition of a continuing
212	210		direct ad valorem tax, without limit as to rate or amount, while all
213	211		or part of the bonds are outstanding as required and in the manner
214	212		provided by Sections 54.601 and 54.602, Water Code.
215	213		Sec. 7957.203. BONDS FOR ROAD PROJECTS. At the time of
216	214		issuance, the total principal amount of bonds or other obligations
217	215		issued or incurred to finance road projects and payable from ad
218	216		valorem taxes may not exceed one-fourth of the assessed value of the
219	217		real property in the district.
220	218		SECTION 2. The Legacy Municipal Utility District No. 1
221	219		initially includes all the territory contained in the following
222	220		area:
223	221		Being 781.23 acres out of the S.D. Gervais League, No. Eight
224	222		(8), Hays County, Texas, described as follows, to-wit:
225	223		BEGINNING at a nail in fence corner post in the North line of
226	224		FM Road 967 as described in deed from E.R.L. Wroe to The State of
227	225		Texas recorded in Volume 163, Page 536 of the Deed of Records of
228	226		Hays County, Texas, said point being the relocated Southwest corner
229	227		of that certain 1200 acre tract conveyed to E.R.L. Wroe be deed
230	228		recorded in Volume 139, Page 602 of the Deed of Records of Hays
231	229		County, Texas, for the southwest corner of the tract herein
232	230		described and being the Southeast corner of the P.R. Rutherford
233	231		Greenhaw tract, from which the original Southwest corner of the
234	232		said Wroe 1200 acre tract bears S 0 deg. 40'W. 114 ft., more or less;
235	233		THENCE with the fence along the West line of the said Wroe
236	234		tract and East line of the said Rutherford tract, being also the
237	235		West line of said S.D. Gervais League and the East line of the Thos.
238	236		F. Gray League, N 0 deg. 40'E a distance of 4869.91 ft. to a fence
239	237		corner post at the occupied Northwest corner of the Wroe tract, for
240	238		the Northwest corner of this tract;
241	239		THENCE with the fence along occupied North line of the said
242	240		Wroe 1200 acre tract with the courses and distances as follows: S 89
243	241		deg. 30'E. 267.84 ft., N 87 deg. 56'E. 128.56 ft., S 89 deg. 45'E
244	242		442.77 ft., N 89 deg. 17'E. 135.15 ft., S 89 deg. 51'E 954.73 ft., S
245	243		89 deg. 36'E 1299.82 ft., N 89 deg. 35'E 1099.83 ft., S 89 deg. 55'E
246	244		2482.80 ft., for the Northeast corner of the tract;
247	245		THENCE with the East line of this tract, over and across said
248	246		Wroe tract, DUE South 4981.60 feet to an iron stake set for the
249	247		Southeast corner of this tract;
250	248		THENCE with the fence along the North right-of-way line of FM
251	249		967 and the relocated South line of the said Wroe tract, S 89 deg,
252	250		56'W. 1003.37 ft., N 89 deg. 47'W. 5321.17 ft. to a concrete
253	251		right-of-way monument at point of curve to the right, the radius of
254	252		which is 1585.35 ft., for an angle point in this tract;
255	253		THENCE with the fence along the curving North line of the said
256	254		road to the right, an arc distance of 555.46 ft., the cord of which
257	255		bears N 79 deg. 45'W 552.61 ft. to the Place of Beginning,
258	256		containing 781.23 acres of land, more or less.
259	257		SECTION 3. (a) The legal notice of the intention to
260	258		introduce this Act, setting forth the general substance of this
261	259		Act, has been published as provided by law, and the notice and a
262	260		copy of this Act have been furnished to all persons, agencies,
263	261		officials, or entities to which they are required to be furnished
264	262		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
265	263		Government Code.
266	264		(b) The governor, one of the required recipients, has
267	265		submitted the notice and Act to the Texas Commission on
268	266		Environmental Quality.
269	267		(c) The Texas Commission on Environmental Quality has filed
270	268		its recommendations relating to this Act with the governor, the
271	269		lieutenant governor, and the speaker of the house of
272	270		representatives within the required time.
273	271		(d) All requirements of the constitution and laws of this
274	272		state and the rules and procedures of the legislature with respect
275	273		to the notice, introduction, and passage of this Act are fulfilled
276	274		and accomplished.
277	275		SECTION 4. (a) If this Act does not receive a two-thirds
278	276		vote of all the members elected to each house, Subchapter C, Chapter
279	277		7957, Special District Local Laws Code, as added by Section 1 of
280	278		this Act, is amended by adding Section 7957.107 to read as follows:
281	279		Sec. 7957.107. NO EMINENT DOMAIN POWER. The district may
282	280		not exercise the power of eminent domain.
283	281		(b) This section is not intended to be an expression of a
284	282		legislative interpretation of the requirements of Section 17(c),
285	283		Article I, Texas Constitution.
286	284		SECTION 5. This Act takes effect immediately if it receives
287	285		a vote of two-thirds of all the members elected to each house, as
288	286		provided by Section 39, Article III, Texas Constitution. If this
289	287		Act does not receive the vote necessary for immediate effect, this
290	288		Act takes effect September 1, 2015.
	289	+	______________________________ ______________________________
	290	+	President of the Senate Speaker of the House
	291	+	I hereby certify that S.B. No. 2074 passed the Senate on
	292	+	May 23, 2015, by the following vote: Yeas 30, Nays 1.
	293	+	______________________________
	294	+	Secretary of the Senate
	295	+	I hereby certify that S.B. No. 2074 passed the House on
	296	+	May 27, 2015, by the following vote: Yeas 144, Nays 0, two
	297	+	present not voting.
	298	+	______________________________
	299	+	Chief Clerk of the House
	300	+	Approved:
	301	+	______________________________
	302	+	Date
	303	+	______________________________
	304	+	Governor