Texas 2017 - 85th Regular

Texas House Bill HB2566 Compare Versions

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Version 2 (New)

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1		-	By: Stucky (Senate Sponsor - Estes) H.B. No. 2566
2		-	(In the Senate - Received from the House May 5, 2017;
3		-	May 11, 2017, read first time and referred to Committee on
4		-	Intergovernmental Relations; May 17, 2017, reported favorably by
5		-	the following vote: Yeas 5, Nays 0; May 17, 2017, sent to
6		-	printer.)
7		-	Click here to see the committee vote
	1	+	H.B. No. 2566
8	2
9	3
10		-	A BILL TO BE ENTITLED
11	4		AN ACT
12	5		relating to the creation of the Denton County Municipal Utility
13	6		District No. 9; granting a limited power of eminent domain;
14	7		providing authority to issue bonds; providing authority to impose
15	8		assessments, fees, and taxes.
16	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	10		SECTION 1. Subtitle F, Title 6, Special District Local Laws
18	11		Code, is amended by adding Chapter 7977 to read as follows:
19	12		CHAPTER 7977. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 9
20	13		SUBCHAPTER A. GENERAL PROVISIONS
21	14		Sec. 7977.001. DEFINITIONS. In this chapter:
22	15		(1) "Board" means the district's board of directors.
23	16		(2) "Commission" means the Texas Commission on
24	17		Environmental Quality.
25	18		(3) "Director" means a board member.
26	19		(4) "District" means the Denton County Municipal
27	20		Utility District No. 9.
28	21		Sec. 7977.002. NATURE OF DISTRICT. The district is a
29	22		municipal utility district created under Section 59, Article XVI,
30	23		Texas Constitution.
31	24		Sec. 7977.003. CONFIRMATION AND DIRECTORS' ELECTION
32	25		REQUIRED. The temporary directors shall hold an election to
33	26		confirm the creation of the district and to elect five permanent
34	27		directors as provided by Section 49.102, Water Code.
35	28		Sec. 7977.004. CONSENT OF MUNICIPALITY REQUIRED. The
36	29		temporary directors may not hold an election under Section 7977.003
37	30		until each municipality in whose corporate limits or
38	31		extraterritorial jurisdiction the district is located has
39	32		consented by ordinance or resolution to the creation of the
40	33		district and to the inclusion of land in the district.
41	34		Sec. 7977.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
42	35		The district is created to serve a public purpose and benefit.
43	36		(b) The district is created to accomplish the purposes of:
44	37		(1) a municipal utility district as provided by
45	38		general law and Section 59, Article XVI, Texas Constitution; and
46	39		(2) Section 52, Article III, Texas Constitution, that
47	40		relate to the construction, acquisition, improvement, operation,
48	41		or maintenance of macadamized, graveled, or paved roads, or
49	42		improvements, including storm drainage, in aid of those roads.
50	43		Sec. 7977.006. INITIAL DISTRICT TERRITORY. (a) The
51	44		district is initially composed of the territory described by
52	45		Section 2 of the Act enacting this chapter.
53	46		(b) The boundaries and field notes contained in Section 2 of
54	47		the Act enacting this chapter form a closure. A mistake made in the
55	48		field notes or in copying the field notes in the legislative process
56	49		does not affect the district's:
57	50		(1) organization, existence, or validity;
58	51		(2) right to issue any type of bond for the purposes
59	52		for which the district is created or to pay the principal of and
60	53		interest on a bond;
61	54		(3) right to impose a tax; or
62	55		(4) legality or operation.
63	56		SUBCHAPTER B. BOARD OF DIRECTORS
64	57		Sec. 7977.051. GOVERNING BODY; TERMS. (a) The district is
65	58		governed by a board of five elected directors.
66	59		(b) Except as provided by Section 7977.052, directors serve
67	60		staggered four-year terms.
68	61		Sec. 7977.052. TEMPORARY DIRECTORS. (a) On or after
69	62		September 1, 2017, the owner or owners of a majority of the assessed
70	63		value of the real property in the district may submit a petition to
71	64		the commission requesting that the commission appoint as temporary
72	65		directors the five persons named in the petition. The commission
73	66		shall appoint as temporary directors the five persons named in the
74	67		petition.
75	68		(b) Temporary directors serve until the earlier of:
76	69		(1) the date permanent directors are elected under
77	70		Section 7977.003; or
78	71		(2) September 1, 2021.
79	72		(c) If permanent directors have not been elected under
80	73		Section 7977.003 and the terms of the temporary directors have
81	74		expired, successor temporary directors shall be appointed or
82	75		reappointed as provided by Subsection (d) to serve terms that
83	76		expire on the earlier of:
84	77		(1) the date permanent directors are elected under
85	78		Section 7977.003; or
86	79		(2) the fourth anniversary of the date of the
87	80		appointment or reappointment.
88	81		(d) If Subsection (c) applies, the owner or owners of a
89	82		majority of the assessed value of the real property in the district
90	83		may submit a petition to the commission requesting that the
91	84		commission appoint as successor temporary directors the five
92	85		persons named in the petition. The commission shall appoint as
93	86		successor temporary directors the five persons named in the
94	87		petition.
95	88		SUBCHAPTER C. POWERS AND DUTIES
96	89		Sec. 7977.101. GENERAL POWERS AND DUTIES. The district has
97	90		the powers and duties necessary to accomplish the purposes for
98	91		which the district is created.
99	92		Sec. 7977.102. MUNICIPAL UTILITY DISTRICT POWERS AND
100	93		DUTIES. The district has the powers and duties provided by the
101	94		general law of this state, including Chapters 49 and 54, Water Code,
102	95		applicable to municipal utility districts created under Section 59,
103	96		Article XVI, Texas Constitution.
104	97		Sec. 7977.103. AUTHORITY FOR ROAD PROJECTS. Under Section
105	98		52, Article III, Texas Constitution, the district may design,
106	99		acquire, construct, finance, issue bonds for, improve, operate,
107	100		maintain, and convey to this state, a county, or a municipality for
108	101		operation and maintenance macadamized, graveled, or paved roads, or
109	102		improvements, including storm drainage, in aid of those roads.
110	103		Sec. 7977.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road
111	104		project must meet all applicable construction standards, zoning and
112	105		subdivision requirements, and regulations of each municipality in
113	106		whose corporate limits or extraterritorial jurisdiction the road
114	107		project is located.
115	108		(b) If a road project is not located in the corporate limits
116	109		or extraterritorial jurisdiction of a municipality, the road
117	110		project must meet all applicable construction standards,
118	111		subdivision requirements, and regulations of each county in which
119	112		the road project is located.
120	113		(c) If the state will maintain and operate the road, the
121	114		Texas Transportation Commission must approve the plans and
122	115		specifications of the road project.
123	116		Sec. 7977.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
124	117		OR RESOLUTION. The district shall comply with all applicable
125	118		requirements of any ordinance or resolution that is adopted under
126	119		Section 54.016 or 54.0165, Water Code, and that consents to the
127	120		creation of the district or to the inclusion of land in the
128	121		district.
129	122		Sec. 7977.106. FIREFIGHTING SERVICES. Notwithstanding
130	123		Section 49.351(a), Water Code, the district may, as authorized by
131	124		Section 59(f), Article XVI, Texas Constitution, and Section 49.351,
132	125		Water Code:
133	126		(1) establish, operate, and maintain a fire
134	127		department;
135	128		(2) contract with another political subdivision for
136	129		the joint operation of a fire department; or
137	130		(3) contract with any other person to perform
138	131		firefighting services in the district and may issue bonds and
139	132		impose taxes to pay for the department and the activities.
140	133		Sec. 7977.107. FEES AND CHARGES. (a) The district may
141	134		adopt and enforce all necessary charges, mandatory fees, or
142	135		rentals, in addition to taxes, for providing or making available
143	136		any district facility or service, including firefighting
144	137		activities provided under Section 7977.106.
145	138		(b) To enforce payment of an unpaid fee or charge due to the
146	139		district, on the request of the district, a retail public utility,
147	140		as defined by Section 13.002, Water Code, providing water or sewer
148	141		service to a customer in the district shall terminate the service.
149	142		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
150	143		Sec. 7977.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
151	144		district may issue, without an election, bonds and other
152	145		obligations secured by:
153	146		(1) revenue other than ad valorem taxes; or
154	147		(2) contract payments described by Section 7977.153.
155	148		(b) The district must hold an election in the manner
156	149		provided by Chapters 49 and 54, Water Code, to obtain voter approval
157	150		before the district may impose an ad valorem tax or issue bonds
158	151		payable from ad valorem taxes.
159	152		(c) The district may not issue bonds payable from ad valorem
160	153		taxes to finance a road project unless the issuance is approved by a
161	154		vote of a two-thirds majority of the district voters voting at an
162	155		election held for that purpose.
163	156		Sec. 7977.152. OPERATION AND MAINTENANCE TAX. (a) If
164	157		authorized at an election held under Section 7977.151, the district
165	158		may impose an operation and maintenance tax on taxable property in
166	159		the district in accordance with Section 49.107, Water Code.
167	160		(b) The board shall determine the tax rate. The rate may not
168	161		exceed the rate approved at the election.
169	162		Sec. 7977.153. CONTRACT TAXES. (a) In accordance with
170	163		Section 49.108, Water Code, the district may impose a tax other than
171	164		an operation and maintenance tax and use the revenue derived from
172	165		the tax to make payments under a contract after the provisions of
173	166		the contract have been approved by a majority of the district voters
174	167		voting at an election held for that purpose.
175	168		(b) A contract approved by the district voters may contain a
176	169		provision stating that the contract may be modified or amended by
177	170		the board without further voter approval.
178	171		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
179	172		Sec. 7977.201. AUTHORITY TO ISSUE BONDS AND OTHER
180	173		OBLIGATIONS. The district may issue bonds or other obligations
181	174		payable wholly or partly from ad valorem taxes, impact fees,
182	175		revenue, contract payments, grants, or other district money, or any
183	176		combination of those sources, to pay for any authorized district
184	177		purpose.
185	178		Sec. 7977.202. TAXES FOR BONDS. At the time the district
186	179		issues bonds payable wholly or partly from ad valorem taxes, the
187	180		board shall provide for the annual imposition of a continuing
188	181		direct ad valorem tax, without limit as to rate or amount, while all
189	182		or part of the bonds are outstanding as required and in the manner
190	183		provided by Sections 54.601 and 54.602, Water Code.
191	184		Sec. 7977.203. BONDS FOR ROAD PROJECTS. At the time of
192	185		issuance, the total principal amount of bonds or other obligations
193	186		issued or incurred to finance road projects and payable from ad
194	187		valorem taxes may not exceed one-fourth of the assessed value of the
195	188		real property in the district.
196	189		SECTION 2. The Denton County Municipal Utility District
197	190		No. 9 initially includes all the territory contained in the
198	191		following area:
199	192		All that certain lot, tract or parcel of land lying and being
200	193		situated in Denton County, Texas and being a part of the R.R. Jowell
201	194		Survey, Abstract number 660 and also being a part of those tracts of
202	195		land described in deed to The JP Griffin Family Limited Partnership
203	196		recorded in Document number 1995-1682 and 1995-1683, Real Property
204	197		Records, Denton County, Texas and further described as Frist Tract
205	198		and Third Tract in Volume 347, Page 141, Deed Records, Denton
206	199		County, Texas and being more fully described by metes and bounds as
207	200		follows;
208	201		BEGINNING at a capped iron rod set stamped "KAZ" at the Most
209	202		Westerly Southwest corner of said First tract;
210	203		THENCE North 00 degrees 09 minutes 00 seconds East, 186.74 feet to a
211	204		capped iron rod set stamped "KAZ" at a reentrant corner of said
212	205		First tract and an ell corner of that called 114.00 acre tract of
213	206		land described in deed to Serax Ranch LTD. recorded in Instrument
214	207		number 1995-70429, Real Property Records, Denton County, Texas;
215	208		THENCE along the common line of said 114.00 acre tract and this
216	209		tract, South 89 degrees 51 minutes 00 seconds East, 938.96 feet to a
217	210		1/2 inch iron rod found at an ell corner of said First tract and a
218	211		reentrant corner of said 114.00 acre tract;
219	212		THENCE North 00 degrees 21 minutes 14 seconds East, 456.75 feet to a
220	213		TXDOT monument found in the new South line of U.S. Highway 380;
221	214		THENCE along said South line, South 71 degrees 55 minutes 00 seconds
222	215		East, 180.29 feet to a TXDOT monument found;
223	216		THENCE continuing along said South line, South 80 degrees 01
224	217		minutes 46 seconds East, 99.99 feet to a TXDOT monument found;
225	218		THENCE continuing along said South line, North 76 degrees 08
226	219		minutes 36 seconds East, 327.87 feet to a TXDOT monument found;
227	220		THENCE continuing along said South line, South 80 degrees 08
228	221		minutes 48 seconds East, 999.73 feet to a TXDOT monument found;
229	222		THENCE continuing along said South line, South 71 degrees 41
230	223		minutes 06 seconds East, 101.07 feet to a TXDOT monument found;
231	224		THENCE continuing along said South line, South 84 degrees 21
232	225		minutes 50 seconds East, 200.57 feet to a TXDOT monument found;
233	226		THENCE continuing along said South line, South 80 degrees 07
234	227		minutes 31 seconds East, 1400.23 feet to a TXDOT monument found;
235	228		THENCE continuing along said South line, South 72 degrees 55
236	229		minutes 42 seconds East, 312.20 feet to a TXDOT monument found;
237	230		THENCE continuing along said South line, South 85 degrees 18
238	231		minutes 17 seconds East, 600.23 feet to a TXDOT monument found;
239	232		THENCE continuing along said South line, North 86 degrees 06
240	233		minutes 47 seconds East, 101.08 feet to a TXDOT monument found;
241	234		THENCE continuing along said South line, South 85 degrees 19
242	235		minutes 44 seconds East, 800.10 feet to a TXDOT monument found;
243	236		THENCE continuing along said South line, South 89 degrees 35
244	237		minutes 24 seconds East, 247.96 feet to a TXDOT monument found;
245	238		THENCE North 05 degrees 59 minutes 08 seconds East, 15.84 feet to a
246	239		capped iron rod set stamped "KAZ";
247	240		THENCE continuing along said South line, South 84 degrees 16
248	241		minutes 38 seconds East, 330.78 feet to a capped iron rod set
249	242		stamped "KAZ";
250	243		THENCE South 42 degrees 40 minutes 33 seconds East, 147.19 feet to a
251	244		capped iron rod set stamped "KAZ" in the West line of F.M. 2622;
252	245		THENCE along said West line, South 00 degrees 04 minutes 34 seconds
253	246		East, 1268.92 feet to a capped iron rod set stamped "KAZ";
254	247		THENCE South 45 degrees 24 minutes 27 seconds West, 70.09 feet to a
255	248		P.K. nail set in the centerline of George Foster Road;
256	249		THENCE along said centerline, North 89 degrees 01 minutes 43
257	250		seconds West, 2458.67 feet to a P.K. nail set;
258	251		THENCE continuing along said centerline, North 89 degrees 21
259	252		minutes 15 seconds West, 2704.05 feet to a 1/2 inch iron rod found;
260	253		THENCE North 00 degrees 02 minutes 51 seconds West, 125.54 feet to a
261	254		1/2 inch iron rod found;
262	255		THENCE continuing along said centerline, part of the way, North 49
263	256		degrees 00 minutes 24 seconds West, 1925.59 feet to the PLACE OF
264	257		BEGINNING and containing 230.43 acres of land more or less;
265	258		This description is based upon an exhibit as prepared by KAZ
266	259		Surveying, dated ________________. Bearings are based upon the
267	260		West line of the 583.12 acre tract of land.
268	261		SECTION 3. (a) The legal notice of the intention to
269	262		introduce this Act, setting forth the general substance of this
270	263		Act, has been published as provided by law, and the notice and a
271	264		copy of this Act have been furnished to all persons, agencies,
272	265		officials, or entities to which they are required to be furnished
273	266		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
274	267		Government Code.
275	268		(b) The governor, one of the required recipients, has
276	269		submitted the notice and Act to the Texas Commission on
277	270		Environmental Quality.
278	271		(c) The Texas Commission on Environmental Quality has filed
279	272		its recommendations relating to this Act with the governor, the
280	273		lieutenant governor, and the speaker of the house of
281	274		representatives within the required time.
282	275		(d) All requirements of the constitution and laws of this
283	276		state and the rules and procedures of the legislature with respect
284	277		to the notice, introduction, and passage of this Act are fulfilled
285	278		and accomplished.
286	279		SECTION 4. (a) If this Act does not receive a two-thirds
287	280		vote of all the members elected to each house, Subchapter C, Chapter
288	281		7977, Special District Local Laws Code, as added by Section 1 of
289	282		this Act, is amended by adding Section 7977.108 to read as follows:
290	283		Sec. 7977.108. NO EMINENT DOMAIN POWER. The district may
291	284		not exercise the power of eminent domain.
292	285		(b) This section is not intended to be an expression of a
293	286		legislative interpretation of the requirements of Section 17(c),
294	287		Article I, Texas Constitution.
295	288		SECTION 5. This Act takes effect September 1, 2017.
296		-	* * * * *
	289	+	______________________________ ______________________________
	290	+	President of the Senate Speaker of the House
	291	+	I certify that H.B. No. 2566 was passed by the House on May 4,
	292	+	2017, by the following vote: Yeas 140, Nays 3, 2 present, not
	293	+	voting.
	294	+	______________________________
	295	+	Chief Clerk of the House
	296	+	I certify that H.B. No. 2566 was passed by the Senate on May
	297	+	24, 2017, by the following vote: Yeas 30, Nays 1.
	298	+	______________________________
	299	+	Secretary of the Senate
	300	+	APPROVED: _____________________
	301	+	Date
	302	+	_____________________
	303	+	Governor