TX
Texas House Bill HB4283

Texas 2017 - 85th Regular

Texas House Bill HB4283 Compare Versions

OldNewDifferences
1-H.B. No. 4283
1+By: Oliverson (Senate Sponsor - Kolkhorst) H.B. No. 4283
2+ (In the Senate - Received from the House May 10, 2017;
3+ May 10, 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
27
38
9+ A BILL TO BE ENTITLED
410 AN ACT
511 relating to the conversion of the Grand Northwest Municipal Utility
612 District to the Grand Northwest Municipal Management District;
713 providing authority to issue bonds; providing authority to impose
814 assessments, fees, or taxes.
915 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1016 SECTION 1. The Grand Northwest Municipal Utility District
1117 is converted to the Grand Northwest Municipal Management District
1218 and is governed by Chapter 3949, Special District Local Laws Code,
1319 as added by this Act.
1420 SECTION 2. Subtitle C, Title 4, Special District Local Laws
1521 Code, is amended by adding Chapter 3949 to read as follows:
1622 CHAPTER 3949. GRAND NORTHWEST MUNICIPAL MANAGEMENT DISTRICT
1723 SUBCHAPTER A. GENERAL PROVISIONS
1824 Sec. 3949.001. DEFINITIONS. In this chapter:
1925 (1) "Board" means the district's board of directors.
2026 (2) "County" means Harris County.
2127 (3) "Director" means a board member.
2228 (4) "District" means the Grand Northwest Municipal
2329 Management District, formerly the Grand Northwest Municipal
2430 Utility District.
2531 Sec. 3949.002. NATURE OF DISTRICT; CONVERSION. The Grand
2632 Northwest Municipal Management District is a special district
2733 created under Section 59, Article XVI, Texas Constitution, as the
2834 Grand Northwest Municipal Utility District. The district is
2935 converted to a municipal management district known as the Grand
3036 Northwest Municipal Management District under the same
3137 constitutional authority.
3238 Sec. 3949.003. PURPOSE; DECLARATION OF INTENT. (a) The
3339 conversion and operation of the district are essential to
3440 accomplish the purposes of Sections 52 and 52-a, Article III, and
3541 Section 59, Article XVI, Texas Constitution, and other public
3642 purposes stated in this chapter. By converting the district to a
3743 municipal management district and in authorizing the county and
3844 other political subdivisions to contract with the district, the
3945 legislature has established a program to accomplish the public
4046 purposes set out in Section 52-a, Article III, Texas Constitution.
4147 (b) The conversion and operation of the district are
4248 necessary to promote, develop, encourage, and maintain employment,
4349 commerce, transportation, housing, tourism, recreation, the arts,
4450 entertainment, economic development, safety, and the public
4551 welfare in the district.
4652 (c) This chapter and the conversion or operation of the
4753 district may not be interpreted to relieve the county from
4854 providing the level of services provided as of the effective date of
4955 the Act enacting this chapter to the area in the district. The
5056 district is created to supplement and not to supplant county
5157 services provided in the district.
5258 Sec. 3949.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
5359 The district is converted to a municipal management district to
5460 serve a public use and benefit.
5561 (b) All land and other property included in the district
5662 will benefit from the improvements and services to be provided by
5763 the district under powers conferred by Sections 52 and 52-a,
5864 Article III, and Section 59, Article XVI, Texas Constitution, and
5965 other powers granted under this chapter.
6066 (c) The operation of the district is in the public interest
6167 and is essential to further the public purposes of:
6268 (1) developing and diversifying the economy of the
6369 state;
6470 (2) eliminating unemployment and underemployment; and
6571 (3) developing or expanding transportation and
6672 commerce.
6773 (d) The district will:
6874 (1) promote the health, safety, and general welfare of
6975 residents, employers, potential employees, employees, visitors,
7076 and consumers in the district, and of the public;
7177 (2) provide needed funding for the district to
7278 preserve, maintain, and enhance the economic health and vitality of
7379 the district territory as a community and business center;
7480 (3) promote the health, safety, welfare, and enjoyment
7581 of the public by providing pedestrian ways and by landscaping and
7682 developing certain areas in the district, which are necessary for
7783 the restoration, preservation, and enhancement of scenic beauty;
7884 and
7985 (4) provide for water, wastewater, drainage, road, and
8086 recreational facilities for the district.
8187 (e) Pedestrian ways along or across a street, whether at
8288 grade or above or below the surface, and street lighting, street
8389 landscaping, parking, and street art objects are parts of and
8490 necessary components of a street and are considered to be a street
8591 or road improvement.
8692 (f) The district will not act as the agent or
8793 instrumentality of any private interest even though the district
8894 will benefit many private interests as well as the public.
8995 Sec. 3949.005. INITIAL DISTRICT TERRITORY. The district is
9096 initially composed of the territory of the former Grand Northwest
9197 Municipal Utility District as that territory existed on March 1,
9298 2017.
9399 Sec. 3949.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
94100 DISTRICTS LAW. Except as otherwise provided by this chapter,
95101 Chapter 375, Local Government Code, applies to the district.
96102 Sec. 3949.007. CONSTRUCTION OF CHAPTER. This chapter shall
97103 be liberally construed in conformity with the findings and purposes
98104 stated in this chapter.
99105 SUBCHAPTER B. BOARD OF DIRECTORS
100106 Sec. 3949.051. GOVERNING BODY; TERMS. (a) The district is
101107 governed by a board of five directors elected in the manner provided
102108 by Sections 49.102 and 49.103, Water Code.
103109 (b) Directors serve staggered four-year terms.
104110 Sec. 3949.052. QUORUM. For purposes of determining the
105111 requirements for a quorum of the board, the following are not
106112 counted:
107113 (1) a board position vacant for any reason, including
108114 death, resignation, or disqualification; or
109115 (2) a director who is abstaining from participation in
110116 a vote because of a conflict of interest.
111117 Sec. 3949.053. COMPENSATION. A director is entitled to
112118 receive fees of office and reimbursement for actual expenses as
113119 provided by Section 49.060, Water Code. Sections 375.069 and
114120 375.070, Local Government Code, do not apply to the board.
115121 Sec. 3949.054. INITIAL DIRECTORS ON CONVERSION TO
116122 MANAGEMENT DISTRICT. (a) Notwithstanding Section 3949.051, on the
117123 conversion of the district to a management district the initial
118124 board consists of the following directors:
119125 Pos. No. Name of Director Pos. No. Name of Director
120126 Pos. No. Name of Director
121127 1. Charles Martin 1. Charles Martin
122128 1. Charles Martin
123129 2. Taylor Dillingham 2. Taylor Dillingham
124130 2. Taylor Dillingham
125131 3. Stephen Ghutzman 3. Stephen Ghutzman
126132 3. Stephen Ghutzman
127133 4. Oliver Maarraoui 4. Oliver Maarraoui
128134 4. Oliver Maarraoui
129135 5. Andrew Doonan 5. Andrew Doonan
130136 5. Andrew Doonan
131137 (b) Of the initial directors, the terms of directors
132138 appointed for positions one, two, and three expire May 14, 2018, and
133139 the terms of directors appointed for positions four and five expire
134140 May 12, 2020.
135141 (c) This section expires September 1, 2020.
136142 SUBCHAPTER C. POWERS AND DUTIES
137143 Sec. 3949.101. GENERAL POWERS AND DUTIES. The district has
138144 the powers and duties necessary to accomplish the purposes
139145 described by this chapter.
140146 Sec. 3949.102. IMPROVEMENT PROJECTS AND SERVICES. The
141147 district may provide, design, construct, acquire, improve,
142148 relocate, operate, maintain, or finance an improvement project or
143149 service using any money available to the district, or contract with
144150 a governmental or private entity to provide, design, construct,
145151 acquire, improve, relocate, operate, maintain, or finance an
146152 improvement project or service authorized under this chapter or
147153 Chapter 375, Local Government Code.
148154 Sec. 3949.103. MUNICIPAL UTILITY DISTRICT POWERS AND
149155 DUTIES. The district has the powers and duties provided by the
150156 general law of this state, including Chapters 49 and 54, Water Code,
151157 applicable to municipal utility districts created under Section 59,
152158 Article XVI, Texas Constitution.
153159 Sec. 3949.104. AGREEMENTS; GRANTS. (a) As provided by
154160 Chapter 375, Local Government Code, the district may make an
155161 agreement with or accept a gift, grant, or loan from any person.
156162 (b) The implementation of a project is a governmental
157163 function or service for the purposes of Chapter 791, Government
158164 Code.
159165 Sec. 3949.105. LAW ENFORCEMENT SERVICES. To protect the
160166 public interest, the district may contract with a qualified party,
161167 including the county, to provide law enforcement services in the
162168 district for a fee.
163169 Sec. 3949.106. ECONOMIC DEVELOPMENT. (a) The district may
164170 engage in activities that accomplish the economic development
165171 purposes of the district.
166172 (b) The district may establish and provide for the
167173 administration of one or more programs to promote state or local
168174 economic development and to stimulate business and commercial
169175 activity in the district, including programs to:
170176 (1) make loans and grants of public money; and
171177 (2) provide district personnel and services.
172178 (c) The district may create economic development programs
173179 and exercise the economic development powers provided to
174180 municipalities by:
175181 (1) Chapter 380, Local Government Code; and
176182 (2) Subchapter A, Chapter 1509, Government Code.
177183 Sec. 3949.107. PARKING FACILITIES. (a) The district may
178184 acquire, lease as lessor or lessee, construct, develop, own,
179185 operate, and maintain parking facilities or a system of parking
180186 facilities, including lots, garages, parking terminals, or other
181187 structures or accommodations for parking motor vehicles off the
182188 streets and related appurtenances.
183189 (b) The district's parking facilities serve the public
184190 purposes of the district and are owned, used, and held for a public
185191 purpose even if leased or operated by a private entity for a term of
186192 years.
187193 (c) The district's parking facilities are parts of and
188194 necessary components of a street and are considered to be a street
189195 or road improvement.
190196 (d) The development and operation of the district's parking
191197 facilities may be considered an economic development program.
192198 Sec. 3949.108. ANNEXATION OF LAND. The district may annex
193199 land as provided by Subchapter J, Chapter 49, Water Code.
194200 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
195201 Sec. 3949.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
196202 board by resolution shall establish the number of directors'
197203 signatures and the procedure required for a disbursement or
198204 transfer of district money.
199205 Sec. 3949.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
200206 The district may acquire, construct, finance, operate, or maintain
201207 any improvement or service authorized under this chapter or Chapter
202208 375, Local Government Code, using any money available to the
203209 district.
204210 Sec. 3949.153. PETITION REQUIRED FOR FINANCING SERVICES AND
205211 IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
206212 service or improvement project with assessments under this chapter
207213 unless a written petition requesting that service or improvement
208214 has been filed with the board.
209215 (b) A petition filed under Subsection (a) must be signed by
210216 the owners of a majority of the assessed value of real property in
211217 the district subject to assessment according to the most recent
212218 certified tax appraisal roll for the county.
213219 Sec. 3949.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
214220 The board by resolution may impose and collect an assessment for any
215221 purpose authorized by this chapter in all or any part of the
216222 district.
217223 (b) An assessment, a reassessment, or an assessment
218224 resulting from an addition to or correction of the assessment roll
219225 by the district, penalties and interest on an assessment or
220226 reassessment, an expense of collection, and reasonable attorney's
221227 fees incurred by the district:
222228 (1) are a first and prior lien against the property
223229 assessed;
224230 (2) are superior to any other lien or claim other than
225231 a lien or claim for county, school district, or municipal ad valorem
226232 taxes; and
227233 (3) are the personal liability of and a charge against
228234 the owners of the property even if the owners are not named in the
229235 assessment proceedings.
230236 (c) The lien is effective from the date of the board's
231237 resolution imposing the assessment until the date the assessment is
232238 paid. The board may enforce the lien in the same manner that the
233239 board may enforce an ad valorem tax lien against real property.
234240 (d) The board may make a correction to or deletion from the
235241 assessment roll that does not increase the amount of assessment of
236242 any parcel of land without providing notice and holding a hearing in
237243 the manner required for additional assessments.
238244 SUBCHAPTER E. TAXES AND BONDS
239245 Sec. 3949.201. ELECTIONS REGARDING TAXES AND BONDS. (a)
240246 The district may issue, without an election, bonds, notes, and
241247 other obligations secured by:
242248 (1) revenue other than ad valorem taxes; or
243249 (2) contract payments described by Section 3949.203.
244250 (b) The district must hold an election in the manner
245251 provided by Subchapter L, Chapter 375, Local Government Code, to
246252 obtain voter approval before the district may impose an ad valorem
247253 tax or issue bonds payable from ad valorem taxes.
248254 (c) Section 375.243, Local Government Code, does not apply
249255 to the district.
250256 (d) All or any part of any facilities or improvements that
251257 may be acquired by a district by the issuance of its bonds may be
252258 submitted as a single proposition or as several propositions to be
253259 voted on at the election.
254260 Sec. 3949.202. OPERATION AND MAINTENANCE TAX. (a) If
255261 authorized by a majority of the district voters voting at an
256262 election held in accordance with Section 3949.201, the district may
257263 impose an operation and maintenance tax on taxable property in the
258264 district in accordance with Section 49.107, Water Code, for any
259265 district purpose, including to:
260266 (1) maintain and operate the district;
261267 (2) construct or acquire improvements; or
262268 (3) provide a service.
263269 (b) The board shall determine the tax rate. The rate may not
264270 exceed the rate approved at the election.
265271 (c) Section 49.107(h), Water Code, does not apply to the
266272 district.
267273 Sec. 3949.203. CONTRACT TAXES. (a) In accordance with
268274 Section 49.108, Water Code, the district may impose a tax other than
269275 an operation and maintenance tax and use the revenue derived from
270276 the tax to make payments under a contract after the provisions of
271277 the contract have been approved by a majority of the district voters
272278 voting at an election held for that purpose.
273279 (b) A contract approved by the district voters may contain a
274280 provision stating that the contract may be modified or amended by
275281 the board without further voter approval.
276282 Sec. 3949.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
277283 AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
278284 determined by the board. Section 375.205, Local Government Code,
279285 does not apply to a loan, line of credit, or other borrowing from a
280286 bank or financial institution secured by revenue other than ad
281287 valorem taxes.
282288 (b) The district may issue bonds, notes, or other
283289 obligations payable wholly or partly from ad valorem taxes,
284290 assessments, impact fees, revenue, contract payments, grants, or
285291 other district money, or any combination of those sources of money,
286292 to pay for any authorized district purpose.
287293 (c) The limitation on the outstanding principal amount of
288294 bonds, notes, and other obligations provided by Section 49.4645,
289295 Water Code, does not apply to the district.
290296 Sec. 3949.205. TAXES FOR BONDS. At the time the district
291297 issues bonds payable wholly or partly from ad valorem taxes, the
292298 board shall provide for the annual imposition of a continuing
293299 direct annual ad valorem tax, without limit as to rate or amount,
294300 for each year that all or part of the bonds are outstanding as
295301 required and in the manner provided by Sections 54.601 and 54.602,
296302 Water Code.
297303 SUBCHAPTER F. DISSOLUTION AND MUNICIPAL ANNEXATION
298304 Sec. 3949.251. MUNICIPAL ANNEXATION; DISSOLUTION. (a) The
299305 district is a "water or sewer district" under Section 43.071, Local
300306 Government Code.
301307 (b) Section 43.075, Local Government Code, applies to the
302308 district.
303309 (c) Section 375.264, Local Government Code, does not apply
304310 to the dissolution of the district by a municipality.
305311 SECTION 3. The Grand Northwest Municipal Management
306312 District retains all rights, powers, privileges, authority,
307313 duties, and functions that the Grand Northwest Municipal Utility
308314 District had before the effective date of this Act, except as
309315 otherwise expressly provided by Chapter 3949, Special District
310316 Local Laws Code, as added by this Act.
311317 SECTION 4. (a) The legislature validates and confirms all
312318 governmental acts and proceedings of the Grand Northwest Municipal
313319 Utility District that were taken before the effective date of this
314320 Act.
315321 (b) This section does not apply to any matter that on the
316322 effective date of this Act:
317323 (1) is involved in litigation if the litigation
318324 ultimately results in the matter being held invalid by a final court
319325 judgment; or
320326 (2) has been held invalid by a final court judgment.
321327 SECTION 5. (a) The legal notice of the intention to
322328 introduce this Act, setting forth the general substance of this
323329 Act, has been published as provided by law, and the notice and a
324330 copy of this Act have been furnished to all persons, agencies,
325331 officials, or entities to which they are required to be furnished
326332 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
327333 Government Code.
328334 (b) The governor, one of the required recipients, has
329335 submitted the notice and Act to the Texas Commission on
330336 Environmental Quality.
331337 (c) The Texas Commission on Environmental Quality has filed
332338 its recommendations relating to this Act with the governor,
333339 lieutenant governor, and speaker of the house of representatives
334340 within the required time.
335341 (d) The general law relating to consent by political
336342 subdivisions to the creation of districts with conservation,
337343 reclamation, and road powers and the inclusion of land in those
338344 districts has been complied with.
339345 (e) All requirements of the constitution and laws of this
340346 state and the rules and procedures of the legislature with respect
341347 to the notice, introduction, and passage of this Act have been
342348 fulfilled and accomplished.
343349 SECTION 6. This Act takes effect immediately if it receives
344350 a vote of two-thirds of all the members elected to each house, as
345351 provided by Section 39, Article III, Texas Constitution. If this
346352 Act does not receive the vote necessary for immediate effect, this
347353 Act takes effect September 1, 2017.
348- ______________________________ ______________________________
349- President of the Senate Speaker of the House
350- I certify that H.B. No. 4283 was passed by the House on May 9,
351- 2017, by the following vote: Yeas 137, Nays 6, 2 present, not
352- voting.
353- ______________________________
354- Chief Clerk of the House
355- I certify that H.B. No. 4283 was passed by the Senate on May
356- 24, 2017, by the following vote: Yeas 30, Nays 1.
357- ______________________________
358- Secretary of the Senate
359- APPROVED: _____________________
360- Date
361- _____________________
362- Governor
354+ * * * * *
363355
364356 Pos. No. Name of Director
365357
366358 1. Charles Martin
367359
368360 2. Taylor Dillingham
369361
370362 3. Stephen Ghutzman
371363
372364 4. Oliver Maarraoui
373365
374366 5. Andrew Doonan