Texas 2017 - 85th Regular

Texas House Bill HB4320 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4320
	1	+	By: Zerwas (Senate Sponsor - Kolkhorst) H.B. No. 4320
	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
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the creation of the Fort Bend County Municipal
6	12		Management District No. 2; providing authority to issue bonds;
7	13		providing authority to impose assessments, fees, or taxes.
8	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	15		SECTION 1. Subtitle C, Title 4, Special District Local Laws
10	16		Code, is amended by adding Chapter 3957 to read as follows:
11	17		CHAPTER 3957. FORT BEND COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 2
12	18		SUBCHAPTER A. GENERAL PROVISIONS
13	19		Sec. 3957.001. DEFINITIONS. In this chapter:
14	20		(1) "Board" means the district's board of directors.
15	21		(2) "County" means Fort Bend County.
16	22		(3) "Director" means a board member.
17	23		(4) "District" means the Fort Bend County Municipal
18	24		Management District No. 2.
19	25		Sec. 3957.002. NATURE OF DISTRICT. The district is a
20	26		special district created under Section 59, Article XVI, Texas
21	27		Constitution.
22	28		Sec. 3957.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The
23	29		creation of the district is essential to accomplish the purposes of
24	30		Sections 52 and 52-a, Article III, and Section 59, Article XVI,
25	31		Texas Constitution, and other public purposes stated in this
26	32		chapter. By creating the district and in authorizing the county and
27	33		other political subdivisions to contract with the district, the
28	34		legislature has established a program to accomplish the public
29	35		purposes set out in Section 52-a, Article III, Texas Constitution.
30	36		(b) The creation of the district is necessary to promote,
31	37		develop, encourage, and maintain employment, commerce,
32	38		transportation, housing, tourism, recreation, the arts,
33	39		entertainment, economic development, safety, and the public
34	40		welfare in the district.
35	41		(c) This chapter and the creation of the district may not be
36	42		interpreted to relieve the county from providing the level of
37	43		services provided as of the effective date of the Act enacting this
38	44		chapter to the area in the district. The district is created to
39	45		supplement and not to supplant county services provided in the
40	46		district.
41	47		Sec. 3957.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
42	48		The district is created to serve a public use and benefit.
43	49		(b) All land and other property included in the district
44	50		will benefit from the improvements and services to be provided by
45	51		the district under powers conferred by Sections 52 and 52-a,
46	52		Article III, and Section 59, Article XVI, Texas Constitution, and
47	53		other powers granted under this chapter.
48	54		(c) The creation of the district is in the public interest
49	55		and is essential to further the public purposes of:
50	56		(1) developing and diversifying the economy of the
51	57		state;
52	58		(2) eliminating unemployment and underemployment; and
53	59		(3) developing or expanding transportation and
54	60		commerce.
55	61		(d) The district will:
56	62		(1) promote the health, safety, and general welfare of
57	63		residents, employers, potential employees, employees, visitors,
58	64		and consumers in the district, and of the public;
59	65		(2) provide needed funding for the district to
60	66		preserve, maintain, and enhance the economic health and vitality of
61	67		the district territory as a community and business center;
62	68		(3) promote the health, safety, welfare, and enjoyment
63	69		of the public by providing pedestrian ways and by landscaping and
64	70		developing certain areas in the district, which are necessary for
65	71		the restoration, preservation, and enhancement of scenic beauty;
66	72		and
67	73		(4) provide for water, wastewater, drainage, road, and
68	74		recreational facilities for the district.
69	75		(e) Pedestrian ways along or across a street, whether at
70	76		grade or above or below the surface, and street lighting, street
71	77		landscaping, parking, and street art objects are parts of and
72	78		necessary components of a street and are considered to be a street
73	79		or road improvement.
74	80		(f) The district will not act as the agent or
75	81		instrumentality of any private interest even though the district
76	82		will benefit many private interests as well as the public.
77	83		Sec. 3957.005. INITIAL DISTRICT TERRITORY. (a) The
78	84		district is initially composed of the territory described by
79	85		Section 2 of the Act enacting this chapter.
80	86		(b) The boundaries and field notes contained in Section 2 of
81	87		the Act enacting this chapter form a closure. A mistake in the
82	88		field notes or in copying the field notes in the legislative process
83	89		does not affect the district's:
84	90		(1) organization, existence, or validity;
85	91		(2) right to issue any type of bonds for the purposes
86	92		for which the district is created or to pay the principal of and
87	93		interest on bonds;
88	94		(3) right to impose or collect an assessment or tax; or
89	95		(4) legality or operation.
90	96		Sec. 3957.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
91	97		DISTRICTS LAW. Except as otherwise provided by this chapter,
92	98		Chapter 375, Local Government Code, applies to the district.
93	99		Sec. 3957.007. CONSTRUCTION OF CHAPTER. This chapter shall
94	100		be liberally construed in conformity with the findings and purposes
95	101		stated in this chapter.
96	102		SUBCHAPTER B. BOARD OF DIRECTORS
97	103		Sec. 3957.051. GOVERNING BODY; TERMS. (a) The district is
98	104		governed by a board of five directors elected in the manner provided
99	105		by Sections 49.102 and 49.103, Water Code.
100	106		(b) Except as provided by Section 3957.054, directors serve
101	107		staggered four-year terms.
102	108		Sec. 3957.052. QUORUM. For purposes of determining the
103	109		requirements for a quorum of the board, the following are not
104	110		counted:
105	111		(1) a board position vacant for any reason, including
106	112		death, resignation, or disqualification; or
107	113		(2) a director who is abstaining from participation in
108	114		a vote because of a conflict of interest.
109	115		Sec. 3957.053. COMPENSATION. A director is entitled to
110	116		receive fees of office and reimbursement for actual expenses as
111	117		provided by Section 49.060, Water Code. Sections 375.069 and
112	118		375.070, Local Government Code, do not apply to the board.
113	119		Sec. 3957.054. TEMPORARY VOTING DIRECTORS. (a) On or after
114	120		the effective date of the Act enacting this chapter, the owner or
115	121		owners of a majority of the assessed value of the real property in
116	122		the district according to the most recent certified tax appraisal
117	123		roll for the county may submit a petition to the Texas Commission on
118	124		Environmental Quality requesting that the commission appoint as
119	125		temporary voting directors the five persons named in the petition.
120	126		The commission shall appoint the five persons named in the petition
121	127		as temporary directors by position.
122	128		(b) The temporary directors shall hold an election to elect
123	129		five permanent directors as provided by Section 49.102, Water Code.
124	130		(c) Temporary directors serve until the earlier of:
125	131		(1) the date permanent directors are elected under
126	132		Subsection (b); or
127	133		(2) the fourth anniversary of the effective date of
128	134		the Act enacting this chapter.
129	135		(d) If permanent directors have not been elected under
130	136		Subsection (b) and the terms of the temporary directors have
131	137		expired, successor temporary directors shall be appointed or
132	138		reappointed as provided by Subsection (e) to serve terms that
133	139		expire on the earlier of:
134	140		(1) the date permanent directors are elected under
135	141		Subsection (b); or
136	142		(2) the fourth anniversary of the date of the
137	143		appointment or reappointment.
138	144		(e) If Subsection (d) applies, the owner or owners of a
139	145		majority of the assessed value of the real property in the district
140	146		may submit a petition to the Texas Commission on Environmental
141	147		Quality requesting that the commission appoint as successor
142	148		temporary directors the five persons named in the petition. The
143	149		commission shall appoint as successor temporary directors the five
144	150		persons named in the petition.
145	151		(f) Section 3957.051 does not apply to this section.
146	152		SUBCHAPTER C. POWERS AND DUTIES
147	153		Sec. 3957.101. GENERAL POWERS AND DUTIES. The district has
148	154		the powers and duties necessary to accomplish the purposes for
149	155		which the district is created.
150	156		Sec. 3957.102. IMPROVEMENT PROJECTS AND SERVICES. The
151	157		district may provide, design, construct, acquire, improve,
152	158		relocate, operate, maintain, or finance an improvement project or
153	159		service using any money available to the district, or contract with
154	160		a governmental or private entity to provide, design, construct,
155	161		acquire, improve, relocate, operate, maintain, or finance an
156	162		improvement project or service authorized under this chapter or
157	163		Chapter 375, Local Government Code.
158	164		Sec. 3957.103. AGREEMENTS; GRANTS. (a) As provided by
159	165		Chapter 375, Local Government Code, the district may make an
160	166		agreement with or accept a gift, grant, or loan from any person.
161	167		(b) The implementation of a project is a governmental
162	168		function or service for the purposes of Chapter 791, Government
163	169		Code.
164	170		Sec. 3957.104. LAW ENFORCEMENT SERVICES. To protect the
165	171		public interest, the district may contract with a qualified party,
166	172		including the county, to provide law enforcement services in the
167	173		district for a fee.
168	174		Sec. 3957.105. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
169	175		district may join and pay dues to a charitable or nonprofit
170	176		organization that performs a service or provides an activity
171	177		consistent with the furtherance of a district purpose.
172	178		Sec. 3957.106. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
173	179		district may engage in activities that accomplish the economic
174	180		development purposes of the district.
175	181		(b) The district may establish and provide for the
176	182		administration of one or more programs to promote state or local
177	183		economic development and to stimulate business and commercial
178	184		activity in the district, including programs to:
179	185		(1) make loans and grants of public money; and
180	186		(2) provide district personnel and services.
181	187		(c) The district may create economic development programs
182	188		and exercise the economic development powers provided to
183	189		municipalities by:
184	190		(1) Chapter 380, Local Government Code; and
185	191		(2) Subchapter A, Chapter 1509, Government Code.
186	192		Sec. 3957.107. PARKING FACILITIES. (a) The district may
187	193		acquire, lease as lessor or lessee, construct, develop, own,
188	194		operate, and maintain parking facilities or a system of parking
189	195		facilities, including lots, garages, parking terminals, or other
190	196		structures or accommodations for parking motor vehicles off the
191	197		streets and related appurtenances.
192	198		(b) The district's parking facilities serve the public
193	199		purposes of the district and are owned, used, and held for a public
194	200		purpose even if leased or operated by a private entity for a term of
195	201		years.
196	202		(c) The district's parking facilities are parts of and
197	203		necessary components of a street and are considered to be a street
198	204		or road improvement.
199	205		(d) The development and operation of the district's parking
200	206		facilities may be considered an economic development program.
201	207		Sec. 3957.108. ANNEXATION OF LAND. The district may annex
202	208		land as provided by Subchapter J, Chapter 49, Water Code.
203	209		Sec. 3957.109. NO EMINENT DOMAIN POWER. The district may
204	210		not exercise the power of eminent domain.
205	211		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
206	212		Sec. 3957.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
207	213		board by resolution shall establish the number of directors'
208	214		signatures and the procedure required for a disbursement or
209	215		transfer of district money.
210	216		Sec. 3957.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
211	217		The district may acquire, construct, finance, operate, or maintain
212	218		any improvement or service authorized under this chapter or Chapter
213	219		375, Local Government Code, using any money available to the
214	220		district.
215	221		Sec. 3957.153. PETITION REQUIRED FOR FINANCING SERVICES AND
216	222		IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
217	223		service or improvement project with assessments under this chapter
218	224		unless a written petition requesting that service or improvement
219	225		has been filed with the board.
220	226		(b) A petition filed under Subsection (a) must be signed by
221	227		the owners of a majority of the assessed value of real property in
222	228		the district subject to assessment according to the most recent
223	229		certified tax appraisal roll for the county.
224	230		Sec. 3957.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
225	231		The board by resolution may impose and collect an assessment for any
226	232		purpose authorized by this chapter in all or any part of the
227	233		district.
228	234		(b) An assessment, a reassessment, or an assessment
229	235		resulting from an addition to or correction of the assessment roll
230	236		by the district, penalties and interest on an assessment or
231	237		reassessment, an expense of collection, and reasonable attorney's
232	238		fees incurred by the district:
233	239		(1) are a first and prior lien against the property
234	240		assessed;
235	241		(2) are superior to any other lien or claim other than
236	242		a lien or claim for county, school district, or municipal ad valorem
237	243		taxes; and
238	244		(3) are the personal liability of and a charge against
239	245		the owners of the property even if the owners are not named in the
240	246		assessment proceedings.
241	247		(c) The lien is effective from the date of the board's
242	248		resolution imposing the assessment until the date the assessment is
243	249		paid. The board may enforce the lien in the same manner that the
244	250		board may enforce an ad valorem tax lien against real property.
245	251		(d) The board may make a correction to or deletion from the
246	252		assessment roll that does not increase the amount of assessment of
247	253		any parcel of land without providing notice and holding a hearing in
248	254		the manner required for additional assessments.
249	255		Sec. 3957.155. TAX AND ASSESSMENT ABATEMENTS. The district
250	256		may designate reinvestment zones and may grant abatements of a tax
251	257		or assessment on property in the zones.
252	258		SUBCHAPTER E. TAXES AND BONDS
253	259		Sec. 3957.201. ELECTIONS REGARDING TAXES AND BONDS. (a)
254	260		The district may issue, without an election, bonds, notes, and
255	261		other obligations secured by:
256	262		(1) revenue other than ad valorem taxes; or
257	263		(2) contract payments described by Section 3957.203.
258	264		(b) The district must hold an election in the manner
259	265		provided by Subchapter L, Chapter 375, Local Government Code, to
260	266		obtain voter approval before the district may impose an ad valorem
261	267		tax or issue bonds payable from ad valorem taxes.
262	268		(c) Section 375.243, Local Government Code, does not apply
263	269		to the district.
264	270		(d) All or any part of any facilities or improvements that
265	271		may be acquired by a district by the issuance of its bonds may be
266	272		submitted as a single proposition or as several propositions to be
267	273		voted on at the election.
268	274		Sec. 3957.202. OPERATION AND MAINTENANCE TAX. (a) If
269	275		authorized by a majority of the district voters voting at an
270	276		election held in accordance with Section 3957.201, the district may
271	277		impose an operation and maintenance tax on taxable property in the
272	278		district in accordance with Section 49.107, Water Code, for any
273	279		district purpose, including to:
274	280		(1) maintain and operate the district;
275	281		(2) construct or acquire improvements; or
276	282		(3) provide a service.
277	283		(b) The board shall determine the tax rate. The rate may not
278	284		exceed the rate approved at the election.
279	285		(c) Section 49.107(h), Water Code, does not apply to the
280	286		district.
281	287		Sec. 3957.203. CONTRACT TAXES. (a) In accordance with
282	288		Section 49.108, Water Code, the district may impose a tax other than
283	289		an operation and maintenance tax and use the revenue derived from
284	290		the tax to make payments under a contract after the provisions of
285	291		the contract have been approved by a majority of the district voters
286	292		voting at an election held for that purpose.
287	293		(b) A contract approved by the district voters may contain a
288	294		provision stating that the contract may be modified or amended by
289	295		the board without further voter approval.
290	296		Sec. 3957.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
291	297		AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
292	298		determined by the board. Section 375.205, Local Government Code,
293	299		does not apply to a loan, line of credit, or other borrowing from a
294	300		bank or financial institution secured by revenue other than ad
295	301		valorem taxes.
296	302		(b) The district may issue bonds, notes, or other
297	303		obligations payable wholly or partly from ad valorem taxes,
298	304		assessments, impact fees, revenue, contract payments, grants, or
299	305		other district money, or any combination of those sources of money,
300	306		to pay for any authorized district purpose.
301	307		(c) The limitation on the outstanding principal amount of
302	308		bonds, notes, and other obligations provided by Section 49.4645,
303	309		Water Code, does not apply to the district.
304	310		Sec. 3957.205. TAXES FOR BONDS. At the time the district
305	311		issues bonds payable wholly or partly from ad valorem taxes, the
306	312		board shall provide for the annual imposition of a continuing
307	313		direct annual ad valorem tax, without limit as to rate or amount,
308	314		for each year that all or part of the bonds are outstanding as
309	315		required and in the manner provided by Sections 54.601 and 54.602,
310	316		Water Code.
311	317		SUBCHAPTER F. DEFINED AREAS
312	318		Sec. 3957.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR
313	319		DESIGNATED PROPERTY. The district may define areas or designate
314	320		certain property of the district to pay for improvements,
315	321		facilities, or services that primarily benefit that area or
316	322		property and do not generally and directly benefit the district as a
317	323		whole.
318	324		Sec. 3957.252. PROCEDURE FOR ELECTION. (a) Before the
319	325		district may impose an ad valorem tax or issue bonds payable from ad
320	326		valorem taxes of the defined area or designated property, the board
321	327		shall hold an election in the defined area or in the designated
322	328		property only.
323	329		(b) The board may submit the proposition to the voters on
324	330		the same ballot to be used in another election.
325	331		Sec. 3957.253. DECLARING RESULT AND ISSUING ORDER. (a) If
326	332		a majority of the voters voting at the election approve the
327	333		proposition or propositions, the board shall declare the results
328	334		and, by order, shall establish the defined area and describe it by
329	335		metes and bounds or designate the specific property.
330	336		(b) A court may not review the board's order except on the
331	337		ground of fraud, palpable error, or arbitrary and confiscatory
332	338		abuse of discretion.
333	339		Sec. 3957.254. TAXES FOR SERVICES, IMPROVEMENTS, AND
334	340		FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
335	341		approval and adoption of the order described by Section 3957.253,
336	342		the district may apply separately, differently, equitably, and
337	343		specifically its taxing power and lien authority to the defined
338	344		area or designated property to provide money to construct,
339	345		administer, maintain, and operate services, improvements, and
340	346		facilities that primarily benefit the defined area or designated
341	347		property.
342	348		Sec. 3957.255. ISSUANCE OF BONDS FOR DEFINED AREA OR
343	349		DESIGNATED PROPERTY. After the order under Section 3957.253 is
344	350		adopted, the district may issue bonds to provide for any land,
345	351		improvements, facilities, plants, equipment, and appliances for
346	352		the defined area or designated property.
347	353		Sec. 3957.256. ADDITION OR EXCLUSION OF LAND IN DEFINED
348	354		AREA. The district may add or exclude land from the defined areas
349	355		in the same manner the district may add or exclude land from the
350	356		district.
351	357		SUBCHAPTER G. DISSOLUTION AND MUNICIPAL ANNEXATION
352	358		Sec. 3957.301. DISSOLUTION; MUNICIPAL ANNEXATION. (a) The
353	359		district is a water or sewer district for the purposes of Section
354	360		43.071, Local Government Code.
355	361		(b) Section 43.075, Local Government Code, applies to the
356	362		district.
357	363		(c) Section 375.264, Local Government Code, does not apply
358	364		to the dissolution of the district by a municipality.
359	365		SECTION 2. The Fort Bend County Municipal Management
360	366		District No. 2 initially includes all the territory contained in
361	367		the following area:
362	368		BEING a 100.0 acre tract of land situated in the Knight and
363	369		White Survey, Abstract No. 46 of Fort Bend County, Texas and being a
364	370		portion of a called 901.854 acre tract (Tract I) of land as
365	371		described in an instrument to WBH Ranches, LP recorded under Fort
366	372		Bend County Clerk's File Number (F.B.C.C.F. No.) 2015004534, said
367	373		100.0 acre tract of land described by metes and bounds as follows:
368	374		COMMENCING at an interior corner of said 901.854 acre tract,
369	375		same being the northwest corner of a called 294.296 acre tract as
370	376		described in an instrument to Old South Plantation, Inc. recorded
371	377		under F.B.C.C.F. No. 9722234, and the northwest corner of a called
372	378		19.991 acre Drainage Easement tract as described in an instrument
373	379		to the State of Texas for highway drainage purposes recorded under
374	380		Volume 2247, Page 916 of the Fort Bend County Deed Records;
375	381		THENCE, S 02°29'39" E, along and with the east line of said
376	382		901.854 acre tract, same being the west line of said 294.296 acre
377	383		tract and said 19.991 acre drainage easement tract, a distance of
378	384		1,127.28 feet to the northeast corner and POINT OF BEGINNING of the
379	385		herein described tract;
380	386		THENCE, S 02°29'39" E, continuing along and with said east
381	387		line, a distance of 2,087.00 feet to the southeast corner of the
382	388		herein described tract;
383	389		THENCE, over and across said 901.854 acre tract, the
384	390		following courses and distances:
385	391		S 87°30'21" W, a distance of 2,087.21 feet to the
386	392		southwest corner of the herein described tract;
387	393		N 02°29'39" W, a distance of 2,087.00 feet to the
388	394		northwest corner of the herein described tract;
389	395		N 87°30'21" E, a distance of 2,087.21 feet to the POINT
390	396		OF BEGINNING and containing 100.0 acres of land.
391	397		Bearing orientation is based on the Texas Coordinate System,
392	398		South Central Zone 4204, NAD-83 and is referenced to a called
393	399		901.854 acre tract as cited herein.
394	400		SECTION 3. (a) The legal notice of the intention to
395	401		introduce this Act, setting forth the general substance of this
396	402		Act, has been published as provided by law, and the notice and a
397	403		copy of this Act have been furnished to all persons, agencies,
398	404		officials, or entities to which they are required to be furnished
399	405		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
400	406		Government Code.
401	407		(b) The governor, one of the required recipients, has
402	408		submitted the notice and Act to the Texas Commission on
403	409		Environmental Quality.
404	410		(c) The Texas Commission on Environmental Quality has filed
405	411		its recommendations relating to this Act with the governor,
406	412		lieutenant governor, and speaker of the house of representatives
407	413		within the required time.
408	414		(d) The general law relating to consent by political
409	415		subdivisions to the creation of districts with conservation,
410	416		reclamation, and road powers and the inclusion of land in those
411	417		districts has been complied with.
412	418		(e) All requirements of the constitution and laws of this
413	419		state and the rules and procedures of the legislature with respect
414	420		to the notice, introduction, and passage of this Act have been
415	421		fulfilled and accomplished.
416	422		SECTION 4. This Act takes effect immediately if it receives
417	423		a vote of two-thirds of all the members elected to each house, as
418	424		provided by Section 39, Article III, Texas Constitution. If this
419	425		Act does not receive the vote necessary for immediate effect, this
420	426		Act takes effect September 1, 2017.
421		-	______________________________ ______________________________
422		-	President of the Senate Speaker of the House
423		-	I certify that H.B. No. 4320 was passed by the House on May 9,
424		-	2017, by the following vote: Yeas 132, Nays 13, 2 present, not
425		-	voting.
426		-	______________________________
427		-	Chief Clerk of the House
428		-	I certify that H.B. No. 4320 was passed by the Senate on May
429		-	24, 2017, by the following vote: Yeas 30, Nays 1.
430		-	______________________________
431		-	Secretary of the Senate
432		-	APPROVED: _____________________
433		-	Date
434		-	_____________________
435		-	Governor
	427	+	* * * * *