By: Gooden (Senate Sponsor - Hall) H.B. No. 1207
(In the Senate - Received from the House May 10, 2017;
May 10, 2017, read first time and referred to Committee on
Agriculture, Water & Rural Affairs; May 19, 2017, reported
adversely, with favorable Committee Substitute by the following
vote: Yeas 5, Nays 0; May 19, 2017, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 1207 By: RodrÃguez
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the Kaufman County Fresh Water
Supply District No. 1-A; providing authority to issue bonds and
levy assessments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 6, Special District Local Laws
Code, is amended by adding Chapter 6916 to read as follows:
CHAPTER 6916. KAUFMAN COUNTY FRESH WATER SUPPLY DISTRICT NO. 1-A
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6916.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the Kaufman County Fresh Water
Supply District No. 1-A.
Sec. 6916.002. NATURE OF DISTRICT. The district is a fresh
water supply district created under and essential to accomplish the
purposes of Section 52, Article III, and Section 59, Article XVI,
Texas Constitution.
Sec. 6916.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation and
commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, vehicle parking, and street art objects are parts of
and necessary components of a street and are considered to be an
improvement project that includes a street or road improvement.
Sec. 6916.004. APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, the following laws apply to the
district:
(1) Chapters 49, 51, and 53, Water Code;
(2) Chapters 372 and 375, Local Government Code; and
(3) Chapter 257, Transportation Code, and other
general laws applicable to road districts created under Section 52,
Article III, Texas Constitution, to the extent those provisions can
apply to the district.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 6916.051. 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, concreted, or
paved roads, or improvements, including storm drainage, in aid of
those roads.
Sec. 6916.052. 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. 6916.053. JOINT ROAD PROJECTS. (a) A district may
contract with a state agency, political subdivision, or corporation
created under Chapter 431, Transportation Code, for a joint road
project.
(b) The contract may:
(1) provide for joint payment of project costs; and
(2) require the state agency, political subdivision,
or corporation to design, construct, or improve a project,
including landscaping, as provided by the contract.
Sec. 6916.054. EXEMPTION FROM CERTAIN SUPERVISION AND
APPROVAL REQUIREMENTS. (a) The district may reimburse
expenditures as provided by Sections 257.003(a) and (b),
Transportation Code, without the approval required by Section
257.003(c), Transportation Code.
(b) The district may reimburse expenditures for a project
constructed or acquired under Section 6916.051 or 6916.053 without
the approval required by Section 49.107(f), Water Code.
(c) Sections 49.181 and 49.182, Water Code, and Section
375.208, Local Government Code, do not apply to:
(1) a project authorized by Section 6916.051 or
6916.053;
(2) bonds issued for a project described by
Subdivision (1); or
(3) bonds issued under Chapter 372, Local Government
Code, as authorized by Section 6916.151(b).
Sec. 6916.055. ROAD CONTRACTS. The district may enter into
a contract for a road project in the same manner as a road district
under Chapter 257, Transportation Code, except that competitive
bidding for a road project contract is governed by Subchapter I,
Chapter 49, Water Code.
Sec. 6916.056. 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 boundaries of the district as the boundaries exist on
the effective date 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) 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.
(f) 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 Texas Commission on Environmental Quality and record the
order in the real property records of each county in which the
district is located.
(g) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Chapter 49, Water Code.
(h) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
Texas Commission on Environmental Quality.
(i) 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.
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
Sec. 6916.101. ASSESSMENTS. (a) The district may impose an
assessment on property in the district to pay for an improvement
project or an obligation described by Section 6916.151 in the
manner provided for:
(1) a district under Subchapters A, E, and F, Chapter
375, Local Government Code; or
(2) a municipality or county under Subchapter A,
Chapter 372, Local Government Code.
(b) The district may impose an assessment for any district
operation and maintenance or authorized improvement or
supplemental service, including public safety services, in the
manner provided for:
(1) a district under Subchapters A, E, and F, Chapter
375, Local Government Code; or
(2) a municipality or county under Subchapter A,
Chapter 372, Local Government Code.
(c) The district may not impose an assessment on a
municipality, county, or other political subdivision.
Sec. 6916.102. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
SUBCHAPTER D. BONDS
Sec. 6916.151. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. (a) Subject to Subsections (e) and (f), the district
may issue bonds or other obligations to finance the construction,
maintenance, or operation of road projects authorized by Section
6916.051 or 6916.053.
(b) The district may issue, by public or private sale,
bonds, notes, or other obligations payable wholly or partly from
assessments in the manner provided by:
(1) Subchapter J, Chapter 375, Local Government Code;
or
(2) Subchapter A, Chapter 372, Local Government Code,
if an improvement project financed by an obligation issued under
this subsection will be conveyed to or operated and maintained by a
municipality or retail utility provider under an agreement between
the district and the municipality or retail utility provider
entered into before the issuance of the obligation.
(c) The district may issue by competitive bidding or
negotiated sale bonds or other obligations, payable wholly or
partly from any available revenue of the district, to pay for an
improvement project.
(d) The district may issue by competitive bidding or
negotiated sale bonds or other obligations, payable wholly or
partly from any available revenue of the district or contract
revenue from another district that is secured by ad valorem taxes
imposed by or other revenue from the other district, to pay for a
joint utility or road project.
(e) The district may not issue bonds or other obligations
payable wholly or partly 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.
(f) 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. (a) The following are validated and confirmed in
all respects:
(1) the creation of the Kaufman County Fresh Water
Supply District No. 1-A; and
(2) any act or proceeding of the district, including
an election, not excepted by this section and taken not more than
three years before the effective date of this Act, effective as of
the date on which the act or proceeding occurred.
(b) This section does not apply to:
(1) an act, proceeding, director, other official,
bond, or other obligation the validity of which or of whom is the
subject of litigation that is pending on the effective date of this
Act; or
(2) an act or proceeding that, under a statute of this
state or the United States, was a misdemeanor or felony at the time
the act or proceeding occurred.
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. 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, 2017.
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