H.B. No. 4340 AN ACT relating to the creation of the Williamson County Municipal Utility District No. 34; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapter 8008 to read as follows: CHAPTER 8008. WILLIAMSON COUNTY MUNICIPAL UTILITY DISTRICT NO. 34 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8008.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Commission" means the Texas Commission on Environmental Quality. (3) "Director" means a board member. (4) "District" means the Williamson County Municipal Utility District No. 34. Sec. 8008.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8008.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED. The temporary directors shall hold an election to confirm the creation of the district and to elect five permanent directors as provided by Section 49.102, Water Code. Sec. 8008.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8008.003 until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district. Sec. 8008.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) The district is created to serve a public purpose and benefit. (b) The district is created to accomplish the purposes of: (1) a municipal utility district as provided by general law and Section 59, Article XVI, Texas Constitution; and (2) Section 52, Article III, Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8008.006. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure. A mistake made in the field notes or in copying the field notes in the legislative process does not affect the district's: (1) organization, existence, or validity; (2) right to issue any type of bond for the purposes for which the district is created or to pay the principal of and interest on a bond; (3) right to impose a tax; or (4) legality or operation. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8008.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8008.052, directors serve staggered four-year terms. Sec. 8008.052. TEMPORARY DIRECTORS. (a) On or after the effective date of the Act enacting this chapter, the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the commission requesting that the commission appoint as temporary directors the five persons named in the petition. The commission shall appoint as temporary directors the five persons named in the petition. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8008.003; or (2) the fourth anniversary of the effective date of the Act enacting this chapter. (c) If permanent directors have not been elected under Section 8008.003 and the terms of the temporary directors have expired, successor temporary directors shall be appointed or reappointed as provided by Subsection (d) to serve terms that expire on the earlier of: (1) the date permanent directors are elected under Section 8008.003; or (2) the fourth anniversary of the date of the appointment or reappointment. (d) If Subsection (c) applies, the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the commission requesting that the commission appoint as successor temporary directors the five persons named in the petition. The commission shall appoint as successor temporary directors the five persons named in the petition. SUBCHAPTER C. POWERS AND DUTIES Sec. 8008.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8008.102. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. The district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. Sec. 8008.103. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8008.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located. (b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project. Sec. 8008.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION. (a) The district shall comply with all applicable requirements of any ordinance or resolution that is adopted under Section 54.016 or 54.0165, Water Code, and that consents to the creation of the district or to the inclusion of land in the district. (b) In addition to all the rights and remedies provided by other law, if the district violates the terms of an ordinance or resolution described by Subsection (a), the municipality is entitled to injunctive relief or a writ of mandamus issued by a court requiring the district and the district's officials to observe and comply with the terms of the ordinance or resolution. Sec. 8008.106. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district without the written consent of the City of Weir. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8008.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The district may issue, without an election, bonds and other obligations secured by revenue other than ad valorem taxes. (b) The district must hold an election in the manner provided by Chapters 49 and 54, Water Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes. (c) The district may not issue bonds payable from ad valorem taxes to finance a road project unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose. Sec. 8008.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8008.151, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code. (b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8008.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose. Sec. 8008.202. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required and in the manner provided by Sections 54.601 and 54.602, Water Code. Sec. 8008.203. BONDS FOR ROAD PROJECTS. At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district. SECTION 2. The Williamson County Municipal Utility District No. 34 initially includes all the territory contained in the following area: BEING 40.00 acres of land, situated in the Samuel Nimmo Survey, Abstract No. 481, in Williamson County, Texas, said land being a portion of that certain First Tract, called 121.15 acres, as conveyed to K&B Limited Partnership by deed as recorded in Volume 2079, Page 68, of the Official Records of Williamson County, Texas. Surveyed on the ground in the month of August, 2006, under the supervision of Brian F. Peterson, Registered Professional Land Surveyor, and being more particularly described as follows; BEGINNING for Reference at a 1" x 1" steel rod found on the east side of a ditch, 6 feet west of the edge of pavement on the west side of County Road No. 120, marking the Northeast corner of the above-referenced 121.15 acre First Tract, being the most easterly Southeast corner of that certain Tract No. 1, called 147.32 acres, as conveyed to Anton P. Schwertner and his wife, Bernice Schwertner, by deed as recorded in Volume 495, Page 621, of the Deed Records of Williamson County, Texas; THENCE, along the north line of the said 121.15 acre Frist Tract, being the south line of the said 147.32 acre Tract No. 1, S 71° 00' W, 16.33 feet to an iron pin set at the top of a berm on the occupied west line of County Road No. 120, for the Northeast corner and Point of BEGINNING hereof; THENCE, along the top of the said berm along the said occupied west line of County Road No. 120, S 19° 17' 15" E, 177.12 feet to an iron pin set; S 18° 04' E, 362.94 feet to an iron pin set; S 19° 01' 30" E, at 420.25 feet pass an iron pin set for a total distance of 774.83 feet, in all, to an iron pin set and S 25° 24' 15" W, 56.52 feet to an iron pin set for the Southeast corner hereof; THENCE, along the occupied north line of County Road No. 120, S 44° 07' 45" W, 54.89 feet to an iron pin set; S 70° 25' 45" W, 626,75 feet to an iron pin set; S 67° 35' 30" W, 67.37 feet to an iron pin set; S 71° 14' 30" W, 362.95 feet to an iron pin set and S 71° 41' 30" W, 112.64 feet to an iron pin set for the Southwest corner hereof; THENCE, N 19° 00' W, 1,387.42 feet to an iron pin set on the said north line of the 121.15 acre First Tract, being the said south line of the 147.32 acre Tract No. 1, for the Northwest corner hereof; from said point an iron pin found at an 8" Pecan tree marking the most easterly Northwest corner of the said 121.15 acre First Tract, being an interior corner of the said 147.32 acre Tract No. 1 bears S 71° 00' W, 1,066.11 feet; THENCE, N 71° 00' E, 1,262.76 feet to the Place of BEGINNING and containing 40.00 acres of land. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 4. (a) Section 8008.106, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house. (b) If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 8008, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8008.106 to read as follows: Sec. 8008.106. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. (c) This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 4340 was passed by the House on May 19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 4340 was passed by the Senate on May 24, 2017, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor