H.B. No. 2565
relating to the powers and duties of the Big Sky Municipal Utility
District of Denton County and the Smiley Road Water Control and
Improvement District; providing authority to issue bonds and impose
fees and taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. POWERS AND DUTIES OF THE BIG SKY MUNICIPAL UTILITY
DISTRICT OF DENTON COUNTY
SECTION 1.01. Subtitle F, Title 6, Special District Local
Laws Code, is amended by adding Chapter 7973 to read as follows:
CHAPTER 7973. BIG SKY MUNICIPAL UTILITY DISTRICT OF DENTON COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7973.001. DEFINITION. In this chapter, "district"
means the Big Sky Municipal Utility District of Denton County.
Sec. 7973.002. NATURE AND PURPOSES OF DISTRICT. (a) The
district is a municipal utility district created under Section 59,
Article XVI, Texas Constitution.
(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, improvement, operation,
or maintenance of macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 7973.051. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7973.052. 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. 7973.053. 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, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Sec. 7973.054. ROAD STANDARDS AND REQUIREMENTS. (a) A road
project must meet all applicable construction standards 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 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. 7973.055. FIREFIGHTING SERVICES. Notwithstanding
Section 49.351(a), Water Code, the district may, as authorized by
Section 59(f), Article XVI, Texas Constitution, and Section 49.351,
Water Code:
(1) establish, operate, and maintain a fire
department;
(2) contract with another political subdivision for
the joint operation of a fire department; or
(3) contract with any other person to perform
firefighting services in the district and may issue bonds and
impose taxes to pay for the department and the activities.
Sec. 7973.056. FEES AND CHARGES. (a) The district may
adopt and enforce all necessary charges, mandatory fees, or
rentals, in addition to taxes, for providing or making available
any district facility or service, including firefighting
activities provided under Section 7973.055.
(b) To enforce payment of an unpaid fee or charge due to the
district, on the request of the district, a retail public utility,
as defined by Section 13.002, Water Code, providing water or sewer
service to a customer in the district shall terminate the service.
SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS
Sec. 7973.101. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS FOR ROAD PROJECTS. (a) In addition to the district's
authority to issue bonds for other purposes, the district may issue
bonds or other obligations payable wholly or partly from ad valorem
taxes, revenue, contract payments, grants, or other district money,
or any combination of those sources, to pay for a road project
authorized by Section 7973.053.
(b) 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.
(c) 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.
Sec. 7973.102. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
district 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.
SECTION 1.02. The Big Sky Municipal Utility District of
Denton County retains all rights, powers, privileges, authority,
duties, and functions that it had before the effective date of this
article of this Act.
SECTION 1.03. (a) The legal notice of the intention to
introduce a bill relating to the powers and duties of the Big Sky
Municipal Utility District, setting forth the general substance of
this article of this Act, has been published as provided by law, and
the notice and a copy of a bill relating to the powers and duties of
the Big Sky Municipal Utility District 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 a bill relating to the powers and duties of
the Big Sky Municipal Utility District to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this article of 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 article of this Act
are fulfilled and accomplished.
ARTICLE 2. POWERS AND DUTIES OF THE SMILEY ROAD WATER CONTROL AND
IMPROVEMENT DISTRICT
SECTION 2.01. Section 9001.104, Special District Local Laws
Code, is amended to read as follows:
Sec. 9001.104. [PROHIBITION ON] DIVISION OF DISTRICT. (a)
The district may be divided into two or more 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) A new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 9001.004.
(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 shall:
(1) name each new district;
(2) include the metes and bounds of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between the district and each new district.
(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) A new district may be created by the division of the
district only if approved by the voters of the new district in a
confirmation and directors' election held for that purpose.
(h) If the district is located wholly or partly in the
corporate limits or the extraterritorial jurisdiction of a
municipality, the district may not divide under this section unless
the municipality by resolution or ordinance consents to the
division of the district.
(i) Any new district created by the division of the district
must hold an election to obtain voter approval before the district
may impose a maintenance tax or issue bonds payable wholly or partly
from ad valorem taxes. [The district may not divide into two or
more districts in the manner specified by Section 51.748 or 53.029,
Water Code.]
SECTION 2.02. (a) The following are validated and
confirmed in all respects:
(1) the creation of the Smiley Road Water Control and
Improvement District; 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.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2565 was passed by the House on May 4,
2017, by the following vote: Yeas 141, Nays 2, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2565 on May 24, 2017, by the following vote: Yeas 130, Nays 15,
3 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2565 was passed by the Senate, with
amendments, on May 23, 2017, by the following vote: Yeas 29, Nays
2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor