Texas 2017 - 85th Regular

Texas House Bill HB4275 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4275
	1	+	By: Lozano (Senate Sponsor - Zaffirini) H.B. No. 4275
	2	+	(In the Senate - Received from the House May 19, 2017;
	3	+	May 19, 2017, read first time and referred to Committee on
	4	+	Administration; May 23, 2017, reported favorably by the following
	5	+	vote: Yeas 7, Nays 0; May 23, 2017, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the creation of the Ingleside Municipal Utility
6	12		District No. 1; providing authority to issue bonds; granting
7	13		limited power of eminent domain; providing authority to impose
8	14		assessments, fees, and taxes.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	17		Code, is amended by adding Chapter 7998 to read as follows:
12	18		CHAPTER 7998. INGLESIDE MUNICIPAL UTILITY DISTRICT NO. 1
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 7998.001. DEFINITIONS. In this chapter:
15	21		(1) "Board" means the district's board of directors.
16	22		(2) "Commission" means the Texas Commission on
17	23		Environmental Quality.
18	24		(3) "Director" means a board member.
19	25		(4) "District" means the Ingleside Municipal Utility
20	26		District No. 1.
21	27		Sec. 7998.002. NATURE OF DISTRICT. The district is a
22	28		municipal utility district created under Section 59, Article XVI,
23	29		Texas Constitution.
24	30		Sec. 7998.003. CONFIRMATION AND DIRECTORS' ELECTION
25	31		REQUIRED. The temporary directors shall hold an election to
26	32		confirm the creation of the district and to elect five permanent
27	33		directors as provided by Section 49.102, Water Code.
28	34		Sec. 7998.004. CONSENT OF MUNICIPALITY REQUIRED. The
29	35		temporary directors may not hold an election under Section 7998.003
30	36		until each municipality in whose corporate limits or
31	37		extraterritorial jurisdiction the district is located has
32	38		consented by ordinance or resolution to the creation of the
33	39		district and to the inclusion of land in the district.
34	40		Sec. 7998.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
35	41		The district is created to serve a public purpose and benefit.
36	42		(b) The district is created to accomplish the purposes of:
37	43		(1) a municipal utility district as provided by
38	44		general law and Section 59, Article XVI, Texas Constitution; and
39	45		(2) Section 52, Article III, Texas Constitution, that
40	46		relate to the construction, acquisition, improvement, operation,
41	47		or maintenance of macadamized, graveled, or paved roads, or
42	48		improvements, including storm drainage, in aid of those roads.
43	49		Sec. 7998.006. INITIAL DISTRICT TERRITORY. (a) The
44	50		district is initially composed of the territory described by
45	51		Section 2 of the Act enacting this chapter.
46	52		(b) The boundaries and field notes contained in Section 2 of
47	53		the Act enacting this chapter form a closure. A mistake made in the
48	54		field notes or in copying the field notes in the legislative process
49	55		does not affect the district's:
50	56		(1) organization, existence, or validity;
51	57		(2) right to issue any type of bond for the purposes
52	58		for which the district is created or to pay the principal of and
53	59		interest on a bond;
54	60		(3) right to impose a tax; or
55	61		(4) legality or operation.
56	62		SUBCHAPTER B. BOARD OF DIRECTORS
57	63		Sec. 7998.051. GOVERNING BODY; TERMS. (a) The district is
58	64		governed by a board of five elected directors.
59	65		(b) Except as provided by Section 7998.052, directors serve
60	66		staggered four-year terms.
61	67		Sec. 7998.052. TEMPORARY DIRECTORS. (a) The temporary
62	68		board consists of:
63	69		(1) Richard Dupriest;
64	70		(2) Raymond F. Wetegrove;
65	71		(3) Joseph M. Wetegrove;
66	72		(4) Jane Helm; and
67	73		(5) Steven Ray.
68	74		(b) Temporary directors serve until the earlier of:
69	75		(1) the date permanent directors are elected under
70	76		Section 7998.003; or
71	77		(2) the fourth anniversary of the effective date of
72	78		the Act enacting this chapter.
73	79		(c) If permanent directors have not been elected under
74	80		Section 7998.003 and the terms of the temporary directors have
75	81		expired, successor temporary directors shall be appointed or
76	82		reappointed as provided by Subsection (d) to serve terms that
77	83		expire on the earlier of:
78	84		(1) the date permanent directors are elected under
79	85		Section 7998.003; or
80	86		(2) the fourth anniversary of the date of the
81	87		appointment or reappointment.
82	88		(d) If Subsection (c) applies, the owner or owners of a
83	89		majority of the assessed value of the real property in the district
84	90		may submit a petition to the commission requesting that the
85	91		commission appoint as successor temporary directors the five
86	92		persons named in the petition. The commission shall appoint as
87	93		successor temporary directors the five persons named in the
88	94		petition.
89	95		SUBCHAPTER C. POWERS AND DUTIES
90	96		Sec. 7998.101. GENERAL POWERS AND DUTIES. The district has
91	97		the powers and duties necessary to accomplish the purposes for
92	98		which the district is created.
93	99		Sec. 7998.102. MUNICIPAL UTILITY DISTRICT POWERS AND
94	100		DUTIES. The district has the powers and duties provided by the
95	101		general law of this state, including Chapters 49 and 54, Water Code,
96	102		applicable to municipal utility districts created under Section 59,
97	103		Article XVI, Texas Constitution.
98	104		Sec. 7998.103. AUTHORITY FOR ROAD PROJECTS. Under Section
99	105		52, Article III, Texas Constitution, the district may design,
100	106		acquire, construct, finance, issue bonds for, improve, operate,
101	107		maintain, and convey to this state, a county, or a municipality for
102	108		operation and maintenance macadamized, graveled, or paved roads, or
103	109		improvements, including storm drainage, in aid of those roads.
104	110		Sec. 7998.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road
105	111		project must meet all applicable construction standards, zoning and
106	112		subdivision requirements, and regulations of each municipality in
107	113		whose corporate limits or extraterritorial jurisdiction the road
108	114		project is located.
109	115		(b) If a road project is not located in the corporate limits
110	116		or extraterritorial jurisdiction of a municipality, the road
111	117		project must meet all applicable construction standards,
112	118		subdivision requirements, and regulations of each county in which
113	119		the road project is located.
114	120		(c) If the state will maintain and operate the road, the
115	121		Texas Transportation Commission must approve the plans and
116	122		specifications of the road project.
117	123		Sec. 7998.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
118	124		OR RESOLUTION. The district shall comply with all applicable
119	125		requirements of any ordinance or resolution that is adopted under
120	126		Section 54.016 or 54.0165, Water Code, and that consents to the
121	127		creation of the district or to the inclusion of land in the
122	128		district.
123	129		Sec. 7998.106. DIVISION OF DISTRICT. (a) The district may
124	130		be divided into two or more districts only if:
125	131		(1) the district has no outstanding bonded debt;
126	132		(2) the district is not imposing ad valorem taxes; and
127	133		(3) the requirements of Subsection (i), as applicable,
128	134		are satisfied.
129	135		(b) This chapter applies to any new district created by the
130	136		division of the district, and a new district has all the powers and
131	137		duties of the district.
132	138		(c) A new district created by the division of the district
133	139		may not, at the time the new district is created, contain any land
134	140		outside the area described by Section 2 of the Act enacting this
135	141		chapter.
136	142		(d) The board, on its own motion or on receipt of a petition
137	143		signed by the owner or owners of a majority of the assessed value of
138	144		the real property in the district, may adopt an order dividing the
139	145		district.
140	146		(e) The board may adopt an order dividing the district
141	147		before or after the date the board holds an election under Section
142	148		7998.003 to confirm the district's creation.
143	149		(f) An order dividing the district shall:
144	150		(1) name the new district;
145	151		(2) include the metes and bounds of each new district;
146	152		(3) appoint temporary directors for each new district;
147	153		and
148	154		(4) provide for the division of assets and liabilities
149	155		between the district and each new district.
150	156		(g) On or before the 30th day after the date of adoption of
151	157		an order dividing the district, the district shall file the order
152	158		with the commission and record the order in the real property
153	159		records of each county in which the district is located.
154	160		(h) A new district created by the division of the district
155	161		shall hold a confirmation and directors' election as required by
156	162		Section 7998.003.
157	163		(i) If the district is located wholly or partly in the
158	164		corporate limits or the extraterritorial jurisdiction of a
159	165		municipality, the district may not divide under this section unless
160	166		the municipality by resolution or ordinance consents to the
161	167		division of the district. If the district is not located wholly or
162	168		partly in the corporate limits or extraterritorial jurisdiction of
163	169		a municipality, the district may not divide under this section
164	170		unless the commissioners court of each county in which the district
165	171		is wholly or partly located first adopts a resolution or order in
166	172		support of the division of the district.
167	173		(j) Any new district created by the division of the district
168	174		must hold an election as required by this chapter to obtain voter
169	175		approval before the district may impose a maintenance tax or issue
170	176		bonds payable wholly or partly from ad valorem taxes.
171	177		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
172	178		Sec. 7998.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
173	179		district may issue, without an election, bonds and other
174	180		obligations secured by revenue other than ad valorem taxes.
175	181		(b) The district must hold an election in the manner
176	182		provided by Chapters 49 and 54, Water Code, to obtain voter approval
177	183		before the district may impose an ad valorem tax or issue bonds
178	184		payable from ad valorem taxes.
179	185		(c) The district may not issue bonds payable from ad valorem
180	186		taxes to finance a road project unless the issuance is approved by a
181	187		vote of a two-thirds majority of the district voters voting at an
182	188		election held for that purpose.
183	189		Sec. 7998.152. OPERATION AND MAINTENANCE TAX. (a) If
184	190		authorized at an election held under Section 7998.151, the district
185	191		may impose an operation and maintenance tax on taxable property in
186	192		the district in accordance with Section 49.107, Water Code.
187	193		(b) The board shall determine the tax rate. The rate may not
188	194		exceed the rate approved at the election.
189	195		Sec. 7998.153. WATER AND SEWER RATES. Notwithstanding any
190	196		other law, the district shall establish the same rates for
191	197		residential and commercial classes of customers for the provision
192	198		of water and sewer services. For purposes of this section, the
193	199		commercial class may not include apartment complexes or other
194	200		multifamily dwellings.
195	201		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
196	202		Sec. 7998.201. AUTHORITY TO ISSUE BONDS AND OTHER
197	203		OBLIGATIONS. The district may issue bonds or other obligations
198	204		payable wholly or partly from ad valorem taxes, impact fees,
199	205		revenue, contract payments, grants, or other district money, or any
200	206		combination of those sources, to pay for any authorized district
201	207		purpose.
202	208		Sec. 7998.202. TAXES FOR BONDS. At the time the district
203	209		issues bonds payable wholly or partly from ad valorem taxes, the
204	210		board shall provide for the annual imposition of a continuing
205	211		direct ad valorem tax, without limit as to rate or amount, while all
206	212		or part of the bonds are outstanding as required and in the manner
207	213		provided by Sections 54.601 and 54.602, Water Code.
208	214		Sec. 7998.203. BONDS FOR ROAD PROJECTS. At the time of
209	215		issuance, the total principal amount of bonds or other obligations
210	216		issued or incurred to finance road projects and payable from ad
211	217		valorem taxes may not exceed one-fourth of the assessed value of the
212	218		real property in the district.
213	219		SECTION 2. The Ingleside Municipal Utility District No. 1
214	220		initially includes all the territory contained in the following
215	221		area:
216	222		Being 625 acres, more or less, out of the Wm McDonough Survey,
217	223		Abstract 184, the R.S. Williamson Survey, Abstract 283, the Edmond
218	224		St. John Survey, Abstract 250, the Louis Von Zacharias Survey,
219	225		Abstract 272, and the John Robinson Survey, Abstract 226, all
220	226		tracts located in the City of Ingleside, San Patricio County,
221	227		Texas.
222	228		SECTION 3. (a) The legal notice of the intention to
223	229		introduce this Act, setting forth the general substance of this
224	230		Act, has been published as provided by law, and the notice and a
225	231		copy of this Act have been furnished to all persons, agencies,
226	232		officials, or entities to which they are required to be furnished
227	233		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
228	234		Government Code.
229	235		(b) The governor, one of the required recipients, has
230	236		submitted the notice and Act to the Texas Commission on
231	237		Environmental Quality.
232	238		(c) The Texas Commission on Environmental Quality has filed
233	239		its recommendations relating to this Act with the governor, the
234	240		lieutenant governor, and the speaker of the house of
235	241		representatives within the required time.
236	242		(d) All requirements of the constitution and laws of this
237	243		state and the rules and procedures of the legislature with respect
238	244		to the notice, introduction, and passage of this Act are fulfilled
239	245		and accomplished.
240	246		SECTION 4. (a) If this Act does not receive a two-thirds
241	247		vote of all the members elected to each house, Subchapter C, Chapter
242	248		7998, Special District Local Laws Code, as added by Section 1 of
243	249		this Act, is amended by adding Section 7998.107 to read as follows:
244	250		Sec. 7998.107. NO EMINENT DOMAIN POWER. The district may
245	251		not exercise the power of eminent domain.
246	252		(b) This section is not intended to be an expression of a
247	253		legislative interpretation of the requirements of Section 17(c),
248	254		Article I, Texas Constitution.
249	255		SECTION 5. This Act takes effect immediately if it receives
250	256		a vote of two-thirds of all the members elected to each house, as
251	257		provided by Section 39, Article III, Texas Constitution. If this
252	258		Act does not receive the vote necessary for immediate effect, this
253	259		Act takes effect September 1, 2017.
254		-	______________________________ ______________________________
255		-	President of the Senate Speaker of the House
256		-	I certify that H.B. No. 4275 was passed by the House on May
257		-	19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not
258		-	voting.
259		-	______________________________
260		-	Chief Clerk of the House
261		-	I certify that H.B. No. 4275 was passed by the Senate on May
262		-	24, 2017, by the following vote: Yeas 30, Nays 1.
263		-	______________________________
264		-	Secretary of the Senate
265		-	APPROVED: _____________________
266		-	Date
267		-	_____________________
268		-	Governor
	260	+	* * * * *