Texas 2017 - 85th Regular

Texas House Bill HB4335 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4335
	1	+	By: Guillen (Senate Sponsor - Lucio) H.B. No. 4335
	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 22, 2017, reported favorably by the following
	5	+	vote: Yeas 7, Nays 0; May 22, 2017, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
	10	+	AN ACT
4	11		relating to the creation of the Willacy County Municipal Utility
5	12		District No. 1; granting a limited power of eminent domain;
6	13		providing authority to issue bonds; providing authority to impose
7	14		assessments, fees, and taxes.
8	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	16		SECTION 1. Subtitle F, Title 6, Special District Local Laws
10	17		Code, is amended by adding Chapter 8014 to read as follows:
11	18		CHAPTER 8014. WILLACY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
12	19		SUBCHAPTER A. GENERAL PROVISIONS
13	20		Sec. 8014.001. DEFINITIONS. In this chapter:
14	21		(1) "Board" means the district's board of directors.
15	22		(2) "Commission" means the Texas Commission on
16	23		Environmental Quality.
17	24		(3) "Director" means a board member.
18	25		(4) "District" means the Willacy County Municipal
19	26		Utility District No. 1.
20	27		Sec. 8014.002. NATURE OF DISTRICT. The district is a
21	28		municipal utility district created under Section 59, Article XVI,
22	29		Texas Constitution.
23	30		Sec. 8014.003. CONFIRMATION AND DIRECTORS' ELECTION
24	31		REQUIRED. The temporary directors shall hold an election to
25	32		confirm the creation of the district and to elect five permanent
26	33		directors as provided by Section 49.102, Water Code.
27	34		Sec. 8014.004. CONSENT OF MUNICIPALITY REQUIRED. The
28	35		temporary directors may not hold an election under Section 8014.003
29	36		until each municipality in whose corporate limits or
30	37		extraterritorial jurisdiction the district is located has
31	38		consented by ordinance or resolution to the creation of the
32	39		district and to the inclusion of land in the district.
33	40		Sec. 8014.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
34	41		The district is created to serve a public purpose and benefit.
35	42		(b) The district is created to accomplish the purposes of:
36	43		(1) a municipal utility district as provided by
37	44		general law and Section 59, Article XVI, Texas Constitution; and
38	45		(2) Section 52, Article III, Texas Constitution, that
39	46		relate to the construction, acquisition, or improvement of
40	47		macadamized, graveled, or paved roads described by Section 54.234,
41	48		Water Code, or improvements, including storm drainage, in aid of
42	49		those roads.
43	50		Sec. 8014.006. INITIAL DISTRICT TERRITORY. (a) The
44	51		district is initially composed of the territory described by
45	52		Section 2 of the Act enacting this chapter.
46	53		(b) The boundaries and field notes contained in Section 2 of
47	54		the Act enacting this chapter form a closure. A mistake made in the
48	55		field notes or in copying the field notes in the legislative process
49	56		does not affect the district's:
50	57		(1) organization, existence, or validity;
51	58		(2) right to issue any type of bond for the purposes
52	59		for which the district is created or to pay the principal of and
53	60		interest on a bond;
54	61		(3) right to impose a tax; or
55	62		(4) legality or operation.
56	63		SUBCHAPTER B. BOARD OF DIRECTORS
57	64		Sec. 8014.051. GOVERNING BODY; TERMS. (a) The district is
58	65		governed by a board of five elected directors.
59	66		(b) Except as provided by Section 8014.052, directors serve
60	67		staggered four-year terms.
61	68		Sec. 8014.052. TEMPORARY DIRECTORS. (a) The temporary
62	69		board consists of:
63	70		(1) Charles E. Wetegrove;
64	71		(2) Raymond F. Wetegrove;
65	72		(3) Joseph M. Wetegrove;
66	73		(4) Fred Ballard; and
67	74		(5) Craig Childs.
68	75		(b) Temporary directors serve until the earlier of:
69	76		(1) the date permanent directors are elected under
70	77		Section 8014.003; or
71	78		(2) the fourth anniversary of the effective date of
72	79		the Act enacting this chapter.
73	80		(c) If permanent directors have not been elected under
74	81		Section 8014.003 and the terms of the temporary directors have
75	82		expired, successor temporary directors shall be appointed or
76	83		reappointed as provided by Subsection (d) to serve terms that
77	84		expire on the earlier of:
78	85		(1) the date permanent directors are elected under
79	86		Section 8014.003; or
80	87		(2) the fourth anniversary of the date of the
81	88		appointment or reappointment.
82	89		(d) If Subsection (c) applies, the owner or owners of a
83	90		majority of the assessed value of the real property in the district
84	91		may submit a petition to the commission requesting that the
85	92		commission appoint as successor temporary directors the five
86	93		persons named in the petition. The commission shall appoint as
87	94		successor temporary directors the five persons named in the
88	95		petition.
89	96		SUBCHAPTER C. POWERS AND DUTIES
90	97		Sec. 8014.101. GENERAL POWERS AND DUTIES. The district has
91	98		the powers and duties necessary to accomplish the purposes for
92	99		which the district is created.
93	100		Sec. 8014.102. MUNICIPAL UTILITY DISTRICT POWERS AND
94	101		DUTIES. The district has the powers and duties provided by the
95	102		general law of this state, including Chapters 49 and 54, Water Code,
96	103		applicable to municipal utility districts created under Section 59,
97	104		Article XVI, Texas Constitution.
98	105		Sec. 8014.103. AUTHORITY FOR ROAD PROJECTS. (a) Under
99	106		Section 52, Article III, Texas Constitution, the district may
100	107		design, acquire, construct, finance, issue bonds for, improve, and
101	108		convey to this state, a county, or a municipality for operation and
102	109		maintenance macadamized, graveled, or paved roads described by
103	110		Section 54.234, Water Code, or improvements, including storm
104	111		drainage, in aid of those roads.
105	112		(b) The district may exercise the powers provided by this
106	113		section without submitting a petition to or obtaining approval from
107	114		the commission as required by Section 54.234, Water Code.
108	115		Sec. 8014.104. APPROVAL OF ROAD PROJECT. (a) The district
109	116		may not undertake a road project authorized by Section 8014.103
110	117		unless:
111	118		(1) each municipality or county that will operate and
112	119		maintain the road has approved the plans and specifications of the
113	120		road project, if a municipality or county will operate and maintain
114	121		the road; or
115	122		(2) the Texas Transportation Commission has approved
116	123		the plans and specifications of the road project, if the state will
117	124		operate and maintain the road.
118	125		(b) Except as provided by Subsection (a), the district is
119	126		not required to obtain approval from the Texas Transportation
120	127		Commission to design, acquire, construct, finance, issue bonds for,
121	128		improve, or convey a road project.
122	129		Sec. 8014.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
123	130		OR RESOLUTION. The district shall comply with all applicable
124	131		requirements of any ordinance or resolution that is adopted under
125	132		Section 54.016 or 54.0165, Water Code, and that consents to the
126	133		creation of the district or to the inclusion of land in the
127	134		district.
128	135		Sec. 8014.106. DIVISION OF DISTRICT. (a) The district may
129	136		be divided into two or more new districts only if:
130	137		(1) the district has no outstanding bonded debt;
131	138		(2) the district is not imposing ad valorem taxes; and
132	139		(3) the requirements of Subsection (k) have been met.
133	140		(b) This chapter applies to any new district created by the
134	141		division of the district, and a new district has all the powers and
135	142		duties of the district.
136	143		(c) Any new district created by the division of the district
137	144		may not, at the time the new district is created, contain any land
138	145		outside the area described by Section 2 of the Act creating this
139	146		chapter.
140	147		(d) The board, on its own motion or on receipt of a petition
141	148		signed by the owner or owners of a majority of the assessed value of
142	149		the real property in the district, may adopt an order dividing the
143	150		district.
144	151		(e) The board may adopt an order dividing the district
145	152		before or after the date the board holds an election under Section
146	153		8014.003 to confirm the creation of the district.
147	154		(f) An order dividing the district shall:
148	155		(1) name each new district;
149	156		(2) include the metes and bounds description of the
150	157		territory of each new district;
151	158		(3) appoint temporary directors for each new district;
152	159		and
153	160		(4) provide for the division of assets and liabilities
154	161		between or among the new districts.
155	162		(g) On or before the 30th day after the date of adoption of
156	163		an order dividing the district, the district shall file the order
157	164		with the commission and record the order in the real property
158	165		records of each county in which the district is located.
159	166		(h) Any new district created by the division of the district
160	167		shall hold a confirmation and directors' election as required by
161	168		Section 8014.003.
162	169		(i) If the creation of the new district is confirmed, the
163	170		new district shall provide the election date and results to the
164	171		commission.
165	172		(j) Any new district created by the division of the district
166	173		must hold an election as required by this chapter to obtain voter
167	174		approval before the district may impose a maintenance tax or issue
168	175		bonds payable wholly or partly from ad valorem taxes.
169	176		(k) If the district is located wholly or partly in the
170	177		corporate limits or the extraterritorial jurisdiction of a
171	178		municipality, the district may not divide under this section unless
172	179		the municipality by resolution or ordinance consents to the
173	180		division of the district. If the district is not located wholly or
174	181		partly in the corporate limits or extraterritorial jurisdiction of
175	182		a municipality, the district may not divide under this section
176	183		unless the commissioners court of each county in which the district
177	184		is wholly or partly located adopts a resolution or order consenting
178	185		to the division of the district.
179	186		Sec. 8014.107. LIMITATION ON USE OF EMINENT DOMAIN. The
180	187		district may not exercise the power of eminent domain outside the
181	188		district to acquire a site or easement for:
182	189		(1) a road project authorized by Section 8014.103; or
183	190		(2) a recreational facility as defined by Section
184	191		49.462, Water Code.
185	192		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
186	193		Sec. 8014.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
187	194		district may issue, without an election, bonds and other
188	195		obligations secured by revenue other than ad valorem taxes.
189	196		(b) The district must hold an election in the manner
190	197		provided by Chapters 49 and 54, Water Code, to obtain voter approval
191	198		before the district may impose an ad valorem tax or issue bonds
192	199		payable from ad valorem taxes.
193	200		(c) The district may not issue bonds payable from ad valorem
194	201		taxes to finance a road project unless the issuance is approved by a
195	202		vote of a two-thirds majority of the district voters voting at an
196	203		election held for that purpose.
197	204		Sec. 8014.152. OPERATION AND MAINTENANCE TAX. (a) If
198	205		authorized at an election held under Section 8014.151, the district
199	206		may impose an operation and maintenance tax on taxable property in
200	207		the district in accordance with Section 49.107, Water Code.
201	208		(b) The board shall determine the tax rate. The rate may not
202	209		exceed the rate approved at the election.
203	210		Sec. 8014.153. WATER AND SEWER RATES. Notwithstanding any
204	211		other law, the district shall establish the same rates for
205	212		residential and commercial classes of customers for the provision
206	213		of water and sewer services. For purposes of this section, the
207	214		commercial class may not include apartment complexes or other
208	215		multifamily dwellings.
209	216		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
210	217		Sec. 8014.201. AUTHORITY TO ISSUE BONDS AND OTHER
211	218		OBLIGATIONS. The district may issue bonds or other obligations
212	219		payable wholly or partly from ad valorem taxes, impact fees,
213	220		revenue, contract payments, grants, or other district money, or any
214	221		combination of those sources, to pay for any authorized district
215	222		purpose.
216	223		Sec. 8014.202. TAXES FOR BONDS. At the time the district
217	224		issues bonds payable wholly or partly from ad valorem taxes, the
218	225		board shall provide for the annual imposition of a continuing
219	226		direct ad valorem tax, without limit as to rate or amount, while all
220	227		or part of the bonds are outstanding as required and in the manner
221	228		provided by Sections 54.601 and 54.602, Water Code.
222	229		Sec. 8014.203. BONDS FOR ROAD PROJECTS. At the time of
223	230		issuance, the total principal amount of bonds or other obligations
224	231		issued or incurred to finance road projects and payable from ad
225	232		valorem taxes may not exceed one-fourth of the assessed value of the
226	233		real property in the district.
227	234		SECTION 2. The Willacy County Municipal Utility District
228	235		No. 1 initially includes all the territory contained in the
229	236		following area:
230	237		Tracts 1, 2, 3, 4, & 5, Raymond Estate Reserve out of Share
231	238		Number 36, San Juan de Carricitos Grant, recorded in Volume 274,
232	239		Pages 106, Official Records, Willacy County, Texas, containing
233	240		501.42 acres gross and 497.71 acres net.
234	241		SECTION 3. (a) The legal notice of the intention to
235	242		introduce this Act, setting forth the general substance of this
236	243		Act, has been published as provided by law, and the notice and a
237	244		copy of this Act have been furnished to all persons, agencies,
238	245		officials, or entities to which they are required to be furnished
239	246		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
240	247		Government Code.
241	248		(b) The governor, one of the required recipients, has
242	249		submitted the notice and Act to the Texas Commission on
243	250		Environmental Quality.
244	251		(c) The Texas Commission on Environmental Quality has filed
245	252		its recommendations relating to this Act with the governor, the
246	253		lieutenant governor, and the speaker of the house of
247	254		representatives within the required time.
248	255		(d) All requirements of the constitution and laws of this
249	256		state and the rules and procedures of the legislature with respect
250	257		to the notice, introduction, and passage of this Act are fulfilled
251	258		and accomplished.
252	259		SECTION 4. (a) Section 8014.107, Special District Local
253	260		Laws Code, as added by Section 1 of this Act, takes effect only if
254	261		this Act receives a two-thirds vote of all the members elected to
255	262		each house.
256	263		(b) If this Act does not receive a two-thirds vote of all the
257	264		members elected to each house, Subchapter C, Chapter 8014, Special
258	265		District Local Laws Code, as added by Section 1 of this Act, is
259	266		amended by adding Section 8014.107 to read as follows:
260	267		Sec. 8014.107. NO EMINENT DOMAIN POWER. The district may
261	268		not exercise the power of eminent domain.
262	269		(c) This section is not intended to be an expression of a
263	270		legislative interpretation of the requirements of Section 17(c),
264	271		Article I, Texas Constitution.
265	272		SECTION 5. This Act takes effect June 1, 2017, if it
266	273		receives a vote of two-thirds of all the members elected to each
267	274		house, as provided by Section 39, Article III, Texas Constitution.
268	275		If this Act does not receive the vote necessary for effect on that
269	276		date, this Act takes effect September 1, 2017.
270		-	______________________________ ______________________________
271		-	President of the Senate Speaker of the House
272		-	I certify that H.B. No. 4335 was passed by the House on May
273		-	19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not
274		-	voting.
275		-	______________________________
276		-	Chief Clerk of the House
277		-	I certify that H.B. No. 4335 was passed by the Senate on May
278		-	24, 2017, by the following vote: Yeas 30, Nays 1.
279		-	______________________________
280		-	Secretary of the Senate
281		-	APPROVED: _____________________
282		-	Date
283		-	_____________________
284		-	Governor
	277	+	* * * * *