Texas 2017 - 85th Regular

Texas House Bill HB4334 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4334
	1	+	By: Bailes (Senate Sponsor - Nichols) H.B. No. 4334
	2	+	(In the Senate - Received from the House May 19, 2017;
	3	+	May 19, 2017, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 22, 2017, reported adversely,
	5	+	with favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 22, 2017, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 4334 By: Bettencourt
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5		-	relating to certain municipal utility districts; granting a limited
6		-	power of eminent domain; providing authority to issue bonds;
7		-	providing authority to impose assessments, fees, or taxes.
	13	+	relating to the creation of the Liberty County Municipal Utility
	14	+	District No. 1; granting a limited power of eminent domain;
	15	+	providing authority to issue bonds; providing authority to impose
	16	+	assessments, fees, or taxes.
8	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	18		SECTION 1. Subtitle F, Title 6, Special District Local Laws
10	19		Code, is amended by adding Chapter 8010 to read as follows:
11	20		CHAPTER 8010. LIBERTY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
12	21		SUBCHAPTER A. GENERAL PROVISIONS
13	22		Sec. 8010.001. DEFINITIONS. In this chapter:
14	23		(1) "Board" means the district's board of directors.
15	24		(2) "Commission" means the Texas Commission on
16	25		Environmental Quality.
17	26		(3) "Director" means a board member.
18	27		(4) "District" means the Liberty County Municipal
19	28		Utility District No. 1.
20	29		Sec. 8010.002. NATURE OF DISTRICT. The district is a
21	30		municipal utility district created under Section 59, Article XVI,
22	31		Texas Constitution.
23	32		Sec. 8010.003. CONFIRMATION AND DIRECTORS' ELECTION
24	33		REQUIRED. The temporary directors shall hold an election to
25	34		confirm the creation of the district and to elect five permanent
26	35		directors as provided by Section 49.102, Water Code.
27	36		Sec. 8010.004. CONSENT OF MUNICIPALITY REQUIRED. The
28	37		temporary directors may not hold an election under Section 8010.003
29	38		until each municipality in whose corporate limits or
30	39		extraterritorial jurisdiction the district is located has
31	40		consented by ordinance or resolution to the creation of the
32	41		district and to the inclusion of land in the district.
33	42		Sec. 8010.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
34	43		The district is created to serve a public purpose and benefit.
35	44		(b) The district is created to accomplish the purposes of:
36	45		(1) a municipal utility district as provided by
37	46		general law and Section 59, Article XVI, Texas Constitution; and
38	47		(2) Section 52, Article III, Texas Constitution, that
39	48		relate to the construction, acquisition, improvement, operation,
40	49		or maintenance of macadamized, graveled, or paved roads, or
41	50		improvements, including storm drainage, in aid of those roads.
42	51		Sec. 8010.006. INITIAL DISTRICT TERRITORY. (a) The
43	52		district is initially composed of the territory described by
44	53		Section 2 of the Act enacting this chapter.
45	54		(b) The boundaries and field notes contained in Section 2 of
46	55		the Act enacting this chapter form a closure. A mistake made in the
47	56		field notes or in copying the field notes in the legislative process
48	57		does not affect the district's:
49	58		(1) organization, existence, or validity;
50	59		(2) right to issue any type of bond for the purposes
51	60		for which the district is created or to pay the principal of and
52	61		interest on a bond;
53	62		(3) right to impose a tax; or
54	63		(4) legality or operation.
55	64		SUBCHAPTER B. BOARD OF DIRECTORS
56	65		Sec. 8010.051. GOVERNING BODY; TERMS. (a) The district is
57	66		governed by a board of five elected directors.
58	67		(b) Except as provided by Section 8010.053, directors serve
59	68		staggered four-year terms.
60	69		Sec. 8010.052. QUALIFICATIONS. Except for temporary
61	70		directors appointed under Sections 8010.053(a)(1)-(3), to be
62	71		qualified to serve as a director a person must meet the requirements
63	72		of Section 54.102, Water Code.
64	73		Sec. 8010.053. TEMPORARY DIRECTORS. (a) The temporary
65	74		board consists of:
66	75		(1) two directors appointed by the Liberty County
67	76		Commissioners Court;
68	77		(2) two directors appointed by the Cleveland
69	78		Independent School District; and
70	79		(3) one director appointed by the landowner of a
71	80		majority of the assessed real property in the district.
72	81		(b) Temporary directors serve until the earlier of:
73	82		(1) the date permanent directors are elected under
74	83		Section 8010.003; or
75	84		(2) the fourth anniversary of the effective date of
76	85		the Act enacting this chapter.
77	86		(c) If permanent directors have not been elected under
78	87		Section 8010.003 and the terms of the temporary directors have
79	88		expired, successor temporary directors shall be appointed or
80	89		reappointed as provided by Subsection (d) to serve terms that
81	90		expire on the earlier of:
82	91		(1) the date permanent directors are elected under
83	92		Section 8010.003; or
84	93		(2) the fourth anniversary of the date of the
85	94		appointment or reappointment.
86	95		(d) If Subsection (c) applies, the temporary directors
87	96		shall recommend to the commission persons to serve as successor
88	97		temporary directors. After reviewing the recommendations, the
89	98		commission shall approve or disapprove the successor temporary
90	99		directors. If the commission is not satisfied with the
91	100		recommendations, the commission may request additional
92	101		recommendations. On request by the commission, the temporary
93	102		directors shall submit additional recommendations.
94	103		SUBCHAPTER C. POWERS AND DUTIES
95	104		Sec. 8010.101. GENERAL POWERS AND DUTIES. The district has
96	105		the powers and duties necessary to accomplish the purposes for
97	106		which the district is created.
98	107		Sec. 8010.102. MUNICIPAL UTILITY DISTRICT POWERS AND
99	108		DUTIES. The district has the powers and duties provided by the
100	109		general law of this state, including Chapters 49 and 54, Water Code,
101	110		applicable to municipal utility districts created under Section 59,
102	111		Article XVI, Texas Constitution.
103	112		Sec. 8010.103. AUTHORITY FOR ROAD PROJECTS. Under Section
104	113		52, Article III, Texas Constitution, the district may design,
105	114		acquire, construct, finance, issue bonds for, improve, operate,
106	115		maintain, and convey to this state, a county, or a municipality for
107	116		operation and maintenance macadamized, graveled, or paved roads, or
108	117		improvements, including storm drainage, in aid of those roads.
109	118		Sec. 8010.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road
110	119		project must meet all applicable construction standards, zoning and
111	120		subdivision requirements, and regulations of each municipality in
112	121		whose corporate limits or extraterritorial jurisdiction the road
113	122		project is located.
114	123		(b) If a road project is not located in the corporate limits
115	124		or extraterritorial jurisdiction of a municipality, the road
116	125		project must meet all applicable construction standards,
117	126		subdivision requirements, and regulations of each county in which
118	127		the road project is located.
119	128		(c) If the state will maintain and operate the road, the
120	129		Texas Transportation Commission must approve the plans and
121	130		specifications of the road project.
122	131		Sec. 8010.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
123	132		OR RESOLUTION. The district shall comply with all applicable
124	133		requirements of any ordinance or resolution that is adopted under
125	134		Section 54.016 or 54.0165, Water Code, and that consents to the
126	135		creation of the district or to the inclusion of land in the
127	136		district.
128	137		Sec. 8010.106. APPLICATION OF OTHER LAW. Chapters 232 and
129	138		233, Local Government Code, apply to the district. For the purposes
130	139		of those chapters, the district may take action in the same manner
131	140		as a county.
132	141		Sec. 8010.107. DIVISION OF DISTRICT. (a) The district may
133	142		be divided into two or more new districts only if:
134	143		(1) the district has no outstanding bonded debt; and
135	144		(2) the district is not imposing ad valorem taxes.
136	145		(b) This chapter applies to any new district created by the
137	146		division of the district, and a new district has all the powers and
138	147		duties of the district.
139	148		(c) Any new district created by the division of the district
140	149		may not, at the time the new district is created, contain any land
141	150		outside the area described by Section 2 of the Act enacting this
142	151		chapter.
143	152		(d) The board, on its own motion or on receipt of a petition
144	153		signed by the owner or owners of a majority of the assessed value of
145	154		the real property in the district, may adopt an order dividing the
146	155		district.
147	156		(e) The board may adopt an order dividing the district
148	157		before or after the date the board holds an election under Section
149	158		8010.003 to confirm the creation of the district.
150	159		(f) An order dividing the district shall:
151	160		(1) name each new district;
152	161		(2) include the metes and bounds description of the
153	162		territory of each new district;
154	163		(3) appoint temporary directors for each new district;
155	164		and
156	165		(4) provide for the division of assets and liabilities
157	166		between or among the new districts.
158	167		(g) On or before the 30th day after the date of adoption of
159	168		an order dividing the district, the district shall file the order
160	169		with the commission and record the order in the real property
161	170		records of each county in which the district is located.
162	171		(h) Any new district created by the division of the district
163	172		shall hold a confirmation and directors' election as required by
164	173		Section 8010.003.
165	174		(i) If the creation of the new district is confirmed, the
166	175		new district shall provide the election date and results to the
167	176		commission.
168	177		(j) Any new district created by the division of the district
169	178		must hold an election as required by this chapter to obtain voter
170	179		approval before the district may impose a maintenance tax or issue
171	180		bonds payable wholly or partly from ad valorem taxes.
172	181		(k) Municipal consent to the creation of the district and to
173	182		the inclusion of land in the district granted under Section
174	183		8010.004 acts as municipal consent to the creation of any new
175	184		district created by the division of the district and to the
176	185		inclusion of land in the new district.
177	186		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
178	187		Sec. 8010.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
179	188		district may issue, without an election, bonds and other
180	189		obligations secured by:
181	190		(1) revenue other than ad valorem taxes; or
182	191		(2) contract payments described by Section 8010.153.
183	192		(b) The district must hold an election in the manner
184	193		provided by Chapters 49 and 54, Water Code, to obtain voter approval
185	194		before the district may impose an ad valorem tax or issue bonds
186	195		payable from ad valorem taxes.
187	196		(c) The district may not issue bonds payable from ad valorem
188	197		taxes to finance a road project unless the issuance is approved by a
189	198		vote of a two-thirds majority of the district voters voting at an
190	199		election held for that purpose.
191	200		(d) Before the district may issue bonds, the district must
192	201		enter into an agreement with the developer, the Cleveland
193	202		Independent School District, and Liberty County for the transfer of
194	203		land for use as the sites of facilities for the school district and
195	204		for emergency services.
196	205		Sec. 8010.152. OPERATION AND MAINTENANCE TAX. (a) If
197	206		authorized at an election held under Section 8010.151, the district
198	207		may impose an operation and maintenance tax on taxable property in
199	208		the district in accordance with Section 49.107, Water Code.
200	209		(b) The board shall determine the tax rate. The rate may not
201	210		exceed the rate approved at the election.
202	211		Sec. 8010.153. CONTRACT TAXES. (a) In accordance with
203	212		Section 49.108, Water Code, the district may impose a tax other than
204	213		an operation and maintenance tax and use the revenue derived from
205	214		the tax to make payments under a contract after the provisions of
206	215		the contract have been approved by a majority of the district voters
207	216		voting at an election held for that purpose.
208	217		(b) A contract approved by the district voters may contain a
209	218		provision stating that the contract may be modified or amended by
210	219		the board without further voter approval.
211	220		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
212	221		Sec. 8010.201. AUTHORITY TO ISSUE BONDS AND OTHER
213	222		OBLIGATIONS. The district may issue bonds or other obligations
214	223		payable wholly or partly from ad valorem taxes, impact fees,
215	224		revenue, contract payments, grants, or other district money, or any
216	225		combination of those sources, to pay for any authorized district
217	226		purpose.
218	227		Sec. 8010.202. TAXES FOR BONDS. At the time the district
219	228		issues bonds payable wholly or partly from ad valorem taxes, the
220	229		board shall provide for the annual imposition of a continuing
221	230		direct ad valorem tax, without limit as to rate or amount, while all
222	231		or part of the bonds are outstanding as required and in the manner
223	232		provided by Sections 54.601 and 54.602, Water Code.
224	233		Sec. 8010.203. BONDS FOR ROAD PROJECTS. At the time of
225	234		issuance, the total principal amount of bonds or other obligations
226	235		issued or incurred to finance road projects and payable from ad
227	236		valorem taxes may not exceed one-fourth of the assessed value of the
228	237		real property in the district.
229	238		SECTION 2. The Liberty County Municipal Utility District
230	239		No. 1 initially includes all the territory contained in the
231	240		following area:
232	241		A subdivision of 1,329.763 acres of land, being a portion of a
233	242		called 4,394.368 acre tract located in the James T. Dunman Survey,
234	243		Abstract No. 167, W. McWilkinson Survey, Abstract No. 317, H.T. & B.
235	244		R.R. Co. Survey, Abstract No. 443, Liberty County, Texas,
236	245		designated as Santa Fe Subdivision, Section One, Save and Except
237	246		Reserves A thru S of Santa Fe, Subdivision, Section One, a plat of
238	247		said subdivision recorded under Liberty County Clerk's File Number
239	248		2017-005075, of the Official Public Records of Liberty County,
240	249		Texas; and
241	250		Being 3,064.605 acres of land, being a portion of a called
242	251		4,394.368 acre tract located in the James T. Dunman Survey,
243	252		Abstract No. 167, H.T. & B. R.R. Co. Survey, Abstract No. 443, H.T. &
244	253		B. R.R. Co. Survey, Abstract No. 635, W. McWilkinson Survey,
245	254		Abstract No. 317, Charles Smith Survey, Abstract No. 350, B.B.B. &
246	255		C. Survey, Abstract No. 152, William H.B. Witham Survey, Abstract
247	256		No. 395, and the James Darwin Survey, Abstract No. 176, Liberty
248	257		County, Texas, a Deed as recorded under Liberty County Clerk's File
249	258		Number 2016-013974, of the Official Public Records of Liberty
250	259		County, Texas.
251	260		SECTION 3. (a) The legal notice of the intention to
252	261		introduce this Act, setting forth the general substance of this
253	262		Act, has been published as provided by law, and the notice and a
254	263		copy of this Act have been furnished to all persons, agencies,
255	264		officials, or entities to which they are required to be furnished
256	265		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
257	266		Government Code.
258	267		(b) The governor, one of the required recipients, has
259	268		submitted the notice and Act to the Texas Commission on
260	269		Environmental Quality.
261	270		(c) The Texas Commission on Environmental Quality has filed
262	271		its recommendations relating to this Act with the governor, the
263	272		lieutenant governor, and the speaker of the house of
264	273		representatives within the required time.
265	274		(d) All requirements of the constitution and laws of this
266	275		state and the rules and procedures of the legislature with respect
267	276		to the notice, introduction, and passage of this Act are fulfilled
268	277		and accomplished.
269	278		SECTION 4. (a) If this Act does not receive a two-thirds
270	279		vote of all the members elected to each house, Subchapter C, Chapter
271	280		8010, Special District Local Laws Code, as added by Section 1 of
272	281		this Act, is amended by adding Section 8010.108 to read as follows:
273	282		Sec. 8010.108. NO EMINENT DOMAIN POWER. The district may
274	283		not exercise the power of eminent domain.
275	284		(b) This section is not intended to be an expression of a
276	285		legislative interpretation of the requirements of Section 17(c),
277	286		Article I, Texas Constitution.
278		-	SECTION 5. (a) Section 8119.002, Special District Local
279		-	Laws Code, is amended to read as follows:
280		-	Sec. 8119.002. NATURE OF DISTRICT; FINDINGS OF PUBLIC
281		-	PURPOSE AND BENEFIT. (a) The district is created to serve a public
282		-	purpose and benefit [a municipal utility district in Montgomery
283		-	County created under and essential to accomplish the purposes of
284		-	Section 59, Article XVI, Texas Constitution].
285		-	(b) The creation of the district is essential to accomplish
286		-	the purposes of:
287		-	(1) a municipal utility district as provided by
288		-	general law and Section 59, Article XVI, Texas Constitution; and
289		-	(2) Section 52, Article III, Texas Constitution, that
290		-	relate to the construction, acquisition, improvement, operation,
291		-	or maintenance of macadamized, graveled, or paved roads, or
292		-	improvements, including storm drainage, in aid of those roads.
293		-	(b) Subchapter C, Chapter 8119, Special District Local Laws
294		-	Code, is amended by adding Sections 8119.104 and 8119.105 to read as
295		-	follows:
296		-	Sec. 8119.104. AUTHORITY FOR ROAD PROJECTS. Under Section
297		-	52, Article III, Texas Constitution, the district may design,
298		-	acquire, construct, finance, issue bonds for, improve, operate,
299		-	maintain, and convey to this state, a county, or a municipality for
300		-	operation and maintenance macadamized, graveled, or paved roads, or
301		-	improvements, including storm drainage, in aid of those roads.
302		-	Sec. 8119.105. ROAD STANDARDS AND REQUIREMENTS. (a) A
303		-	road project must meet all applicable construction standards,
304		-	zoning and subdivision requirements, and regulations of each
305		-	municipality in whose corporate limits or extraterritorial
306		-	jurisdiction the road project is located.
307		-	(b) If a road project is not located in the corporate limits
308		-	or extraterritorial jurisdiction of a municipality, the road
309		-	project must meet all applicable construction standards,
310		-	subdivision requirements, and regulations of each county in which
311		-	the road project is located.
312		-	(c) If the state will maintain and operate the road, the
313		-	Texas Transportation Commission must approve the plans and
314		-	specifications of the road project.
315		-	(c) Chapter 8119, Special District Local Laws Code, is
316		-	amended by adding Subchapter D to read as follows:
317		-	SUBCHAPTER D. BONDS
318		-	Sec. 8119.151. BONDS FOR ROAD PROJECTS. At the time of
319		-	issuance, the total principal amount of bonds or other obligations
320		-	issued or incurred to finance road projects and payable from ad
321		-	valorem taxes may not exceed one-fourth of the assessed value of the
322		-	real property in the district.
323		-	(d) The legal notice of the intention to introduce this
324		-	section, setting forth the general substance of this section, has
325		-	been published as provided by law, and the notice and a copy of this
326		-	section have been furnished to all persons, agencies, officials, or
327		-	entities to which they are required to be furnished under Section
328		-	59, Article XVI, Texas Constitution, and Chapter 313, Government
329		-	Code.
330		-	(e) The governor, one of the required recipients, has
331		-	submitted the notice and section to the Texas Commission on
332		-	Environmental Quality.
333		-	(f) The Texas Commission on Environmental Quality has filed
334		-	its recommendations relating to this section with the governor, the
335		-	lieutenant governor, and the speaker of the house of
336		-	representatives within the required time.
337		-	(g) All requirements of the constitution and laws of this
338		-	state and the rules and procedures of the legislature with respect
339		-	to the notice, introduction, and passage of this section are
340		-	fulfilled and accomplished.
341		-	SECTION 6. (a) Section 8120.002, Special District Local
342		-	Laws Code, is amended to read as follows:
343		-	Sec. 8120.002. NATURE OF DISTRICT; FINDINGS OF PUBLIC
344		-	PURPOSE AND BENEFIT. (a) The district is created to serve a public
345		-	purpose and benefit [a municipal utility district in Montgomery
346		-	County created under and essential to accomplish the purposes of
347		-	Section 59, Article XVI, Texas Constitution].
348		-	(b) The creation of the district is essential to accomplish
349		-	the purposes of:
350		-	(1) a municipal utility district as provided by
351		-	general law and Section 59, Article XVI, Texas Constitution; and
352		-	(2) Section 52, Article III, Texas Constitution, that
353		-	relate to the construction, acquisition, improvement, operation,
354		-	or maintenance of macadamized, graveled, or paved roads, or
355		-	improvements, including storm drainage, in aid of those roads.
356		-	(b) Subchapter C, Chapter 8120, Special District Local Laws
357		-	Code, is amended by adding Sections 8120.104 and 8120.105 to read as
358		-	follows:
359		-	Sec. 8120.104. AUTHORITY FOR ROAD PROJECTS. Under Section
360		-	52, Article III, Texas Constitution, the district may design,
361		-	acquire, construct, finance, issue bonds for, improve, operate,
362		-	maintain, and convey to this state, a county, or a municipality for
363		-	operation and maintenance macadamized, graveled, or paved roads, or
364		-	improvements, including storm drainage, in aid of those roads.
365		-	Sec. 8120.105. ROAD STANDARDS AND REQUIREMENTS. (a) A
366		-	road project must meet all applicable construction standards,
367		-	zoning and subdivision requirements, and regulations of each
368		-	municipality in whose corporate limits or extraterritorial
369		-	jurisdiction the road project is located.
370		-	(b) If a road project is not located in the corporate limits
371		-	or extraterritorial jurisdiction of a municipality, the road
372		-	project must meet all applicable construction standards,
373		-	subdivision requirements, and regulations of each county in which
374		-	the road project is located.
375		-	(c) If the state will maintain and operate the road, the
376		-	Texas Transportation Commission must approve the plans and
377		-	specifications of the road project.
378		-	(c) Chapter 8120, Special District Local Laws Code, is
379		-	amended by adding Subchapter D to read as follows:
380		-	SUBCHAPTER D. BONDS
381		-	Sec. 8120.151. BONDS FOR ROAD PROJECTS. At the time of
382		-	issuance, the total principal amount of bonds or other obligations
383		-	issued or incurred to finance road projects and payable from ad
384		-	valorem taxes may not exceed one-fourth of the assessed value of the
385		-	real property in the district.
386		-	(d) The legal notice of the intention to introduce this
387		-	section, setting forth the general substance of this section, has
388		-	been published as provided by law, and the notice and a copy of this
389		-	section have been furnished to all persons, agencies, officials, or
390		-	entities to which they are required to be furnished under Section
391		-	59, Article XVI, Texas Constitution, and Chapter 313, Government
392		-	Code.
393		-	(e) The governor, one of the required recipients, has
394		-	submitted the notice and section to the Texas Commission on
395		-	Environmental Quality.
396		-	(f) The Texas Commission on Environmental Quality has filed
397		-	its recommendations relating to this section with the governor, the
398		-	lieutenant governor, and the speaker of the house of
399		-	representatives within the required time.
400		-	(g) All requirements of the constitution and laws of this
401		-	state and the rules and procedures of the legislature with respect
402		-	to the notice, introduction, and passage of this section are
403		-	fulfilled and accomplished.
404		-	SECTION 7. This Act takes effect immediately if it receives
	287	+	SECTION 5. This Act takes effect immediately if it receives
405	288		a vote of two-thirds of all the members elected to each house, as
406	289		provided by Section 39, Article III, Texas Constitution. If this
407	290		Act does not receive the vote necessary for immediate effect, this
408	291		Act takes effect September 1, 2017.
409		-	______________________________ ______________________________
410		-	President of the Senate Speaker of the House
411		-	I certify that H.B. No. 4334 was passed by the House on May
412		-	19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not
413		-	voting; and that the House concurred in Senate amendments to H.B.
414		-	No. 4334 on May 26, 2017, by the following vote: Yeas 120, Nays 24,
415		-	2 present, not voting.
416		-	______________________________
417		-	Chief Clerk of the House
418		-	I certify that H.B. No. 4334 was passed by the Senate, with
419		-	amendments, on May 24, 2017, by the following vote: Yeas 31, Nays
420		-	0.
421		-	______________________________
422		-	Secretary of the Senate
423		-	APPROVED: __________________
424		-	Date
425		-	__________________
426		-	Governor
	292	+	* * * * *