BILL ANALYSIS Senate Research Center H.B. 2220 85R7857 AAF-F By: Elkins (Whitmire) Intergovernmental Relations 5/16/2017 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT H.B. 2220 amends the Special District Local Laws Code to establish provisions relating to the authority, powers, and duties of the West Harris County Municipal Utility District No. 21. The bill grants the district the power to undertake certain road projects and authorizes the district, subject to certain voter approval requirements, to issue obligations and assess a property tax for that specific purpose. H.B. 2220 establishes that the district retains all rights, powers, privileges, authority, duties, and functions granted to it by order of the Texas Water Commission. The bill provides for the validation and confirmation of certain district actions and proceedings taken before the bill's effective date. H.B. 2220 amends current law relating to the powers and duties of the West Harris County Municipal Utility District No. 21, provides authority to issue bonds, and provides authority to impose fees and taxes. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 7976, as follows: CHAPTER 7976. WEST HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 21 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7976.001. DEFINITION. Defines "district." Sec. 7976.002. NATURE AND PURPOSES OF DISTRICT. (a) Provides that the West Harris County Municipal Utility District No. 21 (district) is a municipal utility district (MUD) created under Section 59 (Conservation and Development of Natural Resources and Parks and Recreational Facilities; Conservation and Reclamation Districts), Article XVI (General Provisions), Texas Constitution. (b) Provides that the district is created to accomplish the purposes of a MUD as provided by general law and Section 59, Article XVI, Texas Constitution, and Section 52 (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), Article III (Legislative Department), Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of certain roads. SUBCHAPTER B. POWERS AND DUTIES Sec. 7976.051. GENERAL POWERS AND DUTIES. Provides that the district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 7976.052. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. Provides that the district has the powers and duties provided by the general law of this state, including Chapters 49 (Provisions Applicable to All Districts) and 54 (Municipal Utility Districts), Water Code, applicable to MUDs created under Section 59, Article XVI, Texas Constitution. Sec. 7976.053. AUTHORITY FOR ROAD PROJECTS. Authorizes the district, under Section 52, Article III, Texas Constitution, to design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance certain roads or improvements in aid of those roads. Sec. 7976.054. ROAD STANDARDS AND REQUIREMENTS. (a) Requires that a road project 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) Requires that a road project, if the road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) Requires the Texas Transportation Commission, if the state will maintain and operate the road, to approve the plans and specifications of the road project. SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS Sec. 7976.101. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS FOR ROAD PROJECTS. (a) Authorizes the district to issue bonds or other obligations payable wholly or partly from certain sources, to pay for a road project authorized by Section 7976.053. (b) Prohibits the district from issuing 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. (c) Prohibits the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes, at the time of issuance, from exceeding one-fourth of the assessed value of the real property in the district. Sec. 7976.102. TAXES FOR BONDS. Requires the board of directors of the district, at the time the district issues bonds payable wholly or partly from ad valorem taxes, to 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 (Tax Levy for Bonds) and 54.602 (Establishment of Tax Rate in Each Year), Water Code. SECTION 2. Provides that the district retains all rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act. SECTION 3. (a) Provides that the legislature validates and confirms all governmental acts and proceedings of the district that were taken before the effective date of this Act. (b) Provides that this section does not apply to any matter that on the effective date of this Act is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment or has been held invalid by a final court judgment. SECTION 4. Provides that all requirements of the constitution and the 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 5. Effective date: upon passage or September 1, 2017.
BILL ANALYSIS
Senate Research Center H.B. 2220
85R7857 AAF-F By: Elkins (Whitmire)
Intergovernmental Relations
5/16/2017
Engrossed
Senate Research Center
H.B. 2220
85R7857 AAF-F
By: Elkins (Whitmire)
Intergovernmental Relations
5/16/2017
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
H.B. 2220 amends the Special District Local Laws Code to establish provisions relating to the authority, powers, and duties of the West Harris County Municipal Utility District No. 21. The bill grants the district the power to undertake certain road projects and authorizes the district, subject to certain voter approval requirements, to issue obligations and assess a property tax for that specific purpose.
H.B. 2220 establishes that the district retains all rights, powers, privileges, authority, duties, and functions granted to it by order of the Texas Water Commission. The bill provides for the validation and confirmation of certain district actions and proceedings taken before the bill's effective date.
H.B. 2220 amends current law relating to the powers and duties of the West Harris County Municipal Utility District No. 21, provides authority to issue bonds, and provides authority to impose fees and taxes.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 7976, as follows:
CHAPTER 7976. WEST HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 21
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7976.001. DEFINITION. Defines "district."
Sec. 7976.002. NATURE AND PURPOSES OF DISTRICT. (a) Provides that the West Harris County Municipal Utility District No. 21 (district) is a municipal utility district (MUD) created under Section 59 (Conservation and Development of Natural Resources and Parks and Recreational Facilities; Conservation and Reclamation Districts), Article XVI (General Provisions), Texas Constitution.
(b) Provides that the district is created to accomplish the purposes of a MUD as provided by general law and Section 59, Article XVI, Texas Constitution, and Section 52 (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), Article III (Legislative Department), Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of certain roads.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 7976.051. GENERAL POWERS AND DUTIES. Provides that the district has the powers and duties necessary to accomplish the purposes for which the district is created.
Sec. 7976.052. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. Provides that the district has the powers and duties provided by the general law of this state, including Chapters 49 (Provisions Applicable to All Districts) and 54 (Municipal Utility Districts), Water Code, applicable to MUDs created under Section 59, Article XVI, Texas Constitution.
Sec. 7976.053. AUTHORITY FOR ROAD PROJECTS. Authorizes the district, under Section 52, Article III, Texas Constitution, to design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance certain roads or improvements in aid of those roads.
Sec. 7976.054. ROAD STANDARDS AND REQUIREMENTS. (a) Requires that a road project 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) Requires that a road project, if the road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located.
(c) Requires the Texas Transportation Commission, if the state will maintain and operate the road, to approve the plans and specifications of the road project.
SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS
Sec. 7976.101. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS FOR ROAD PROJECTS. (a) Authorizes the district to issue bonds or other obligations payable wholly or partly from certain sources, to pay for a road project authorized by Section 7976.053.
(b) Prohibits the district from issuing 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.
(c) Prohibits the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes, at the time of issuance, from exceeding one-fourth of the assessed value of the real property in the district.
Sec. 7976.102. TAXES FOR BONDS. Requires the board of directors of the district, at the time the district issues bonds payable wholly or partly from ad valorem taxes, to 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 (Tax Levy for Bonds) and 54.602 (Establishment of Tax Rate in Each Year), Water Code.
SECTION 2. Provides that the district retains all rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act.
SECTION 3. (a) Provides that the legislature validates and confirms all governmental acts and proceedings of the district that were taken before the effective date of this Act.
(b) Provides that this section does not apply to any matter that on the effective date of this Act is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment or has been held invalid by a final court judgment.
SECTION 4. Provides that all requirements of the constitution and the 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 5. Effective date: upon passage or September 1, 2017.