By: Fallon (Senate Sponsor - Hughes) H.B. No. 2987 (In the Senate - Received from the House May 19, 2017; May 19, 2017, read first time and referred to Committee on Administration; May 23, 2017, reported favorably by the following vote: Yeas 6, Nays 0, 1 present not voting; May 23, 2017, sent to printer.) Click here to see the committee vote A BILL TO BE ENTITLED AN ACT relating to the powers and duties of the Denton County Municipal Utility Districts Nos. 4 and 5; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapters 7980 and 7981 to read as follows: CHAPTER 7980. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 4 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7980.001. DEFINITION. In this chapter, "district" means the Denton County Municipal Utility District No. 4. SUBCHAPTER B. POWERS AND DUTIES Sec. 7980.051. 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. 7980.052. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may improve, operate, or maintain any macadamized, graveled, or paved roads in existence on September 1, 2017, or improvements, including storm drainage, in aid of those roads inside the district. Sec. 7980.053. 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. Sec. 7980.054. ACCEPTANCE OF ROADS. (a) The district by order of the board may accept any road inside the district that has been dedicated by plat or otherwise transferred to the public. (b) On acceptance of the road by the district, the district is considered the owner of the accepted road and shall record ownership of the road in the deed records of Denton County. Sec. 7980.055. ELECTION REQUIRED. The district may not exercise the powers authorized by Section 7980.052 unless approved by a vote of a majority of district voters voting at an election called for that purpose. SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS Sec. 7980.101. ISSUANCE OF BONDS AND OTHER OBLIGATIONS FOR ROAD PROJECTS PROHIBITED. The district may not issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for a road project authorized by Section 7980.052. CHAPTER 7981. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 5 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7981.001. DEFINITION. In this chapter, "district" means the Denton County Municipal Utility District No. 5. SUBCHAPTER B. POWERS AND DUTIES Sec. 7981.051. 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. 7981.052. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may improve, operate, or maintain any macadamized, graveled, or paved roads in existence on September 1, 2017, or improvements, including storm drainage, in aid of those roads inside the district. Sec. 7981.053. 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. Sec. 7981.054. ACCEPTANCE OF ROADS. (a) The district by order of the board may accept any road inside the district that has been dedicated by plat or otherwise transferred to the public. (b) On acceptance of the road by the district, the district is considered the owner of the accepted road and shall record ownership of the road in the deed records of Denton County. Sec. 7981.055. ELECTION REQUIRED. The district may not exercise the powers authorized by Section 7981.052 unless approved by a vote of a majority of district voters voting at an election called for that purpose. SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS Sec. 7981.101. ISSUANCE OF BONDS AND OTHER OBLIGATIONS FOR ROAD PROJECTS PROHIBITED. The district may not issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for a road project authorized by Section 7981.052. SECTION 2. (a) The legislature validates and confirms all governmental acts and proceedings of the Denton County Municipal Utility Districts Nos. 4 and 5 that were taken before the effective date of this Act. (b) This section does not apply to any matter that on the effective date of this Act: (1) is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment; or (2) has been held invalid by a final court judgment. 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 August 1, 2017. * * * * *