Texas 2017 - 85th Regular

Texas Senate Bill SB2047 Compare Versions

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1	1	By: Bettencourt S.B. No. 2047
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the creation, territory, and operation of municipal
7	7	management districts and public improvement districts.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 375.022(c), Local Government Code, is
10	10	amended to read as follows:
11	11	(c) The petition must:
12	12	(1) describe the boundaries of the proposed district:
13	13	(A) by metes and bounds;
14	14	(B) by verifiable landmarks, including a road,
15	15	creek, or railroad line; or
16	16	(C) if there is a recorded map or plat and survey
17	17	of the area, by lot and block number;
18	18	(2) demonstrate that the boundaries of the proposed
19	19	district comply with Section 375.045;
20	20	(3) state the specific purposes for which the district
21	21	will be created;
22	22	(4) [(3)] state the general nature of the work,
23	23	projects, or services proposed to be provided, the necessity for
24	24	those services, and the costs as estimated by the persons filing the
25	25	petition;
26	26	(5) [(4)] include a name of the district, which must be
27	27	generally descriptive of the location of the district, followed by
28	28	"Management District" or "Improvement District";
29	29	(6) [(5)] include a proposed list of initial directors
30	30	that includes the directors' experience and initial term of
31	31	service; and
32	32	(7) [(6)] include a resolution of the governing body of
33	33	the municipality in support of the creation of the district.
34	34	(8) and show that the land to be included in the proposed
35	35	district is: unproductive, underdeveloped, or blighted.
36	36	(9) The attorney general shall determine, by application of
37	37	accepted legal principles, the meaning of "unproductive,"
38	38	"underdeveloped," and "blighted" for purposes of section (9) and by
39	39	rule define those terms.
40	40	SECTION 2. Subchapter B, Chapter 375, Local Government
41	41	Code, is amended by adding Section 375.0225 to read as follows:
42	42	Sec. 375.0225. CREATION OF SIMILAR DISTRICT
43	43	PROHIBITED. The commission may not grant a petition to create a
44	44	district under this subchapter if, less than 10 years before the
45	45	date the commission receives the petition, there was introduced for
46	46	consideration by the legislature a bill to authorize by local law
47	47	the creation of a substantially similar district.
48	48	SECTION 3. Section 375.025(c), Local Government Code, is
49	49	amended to read as follows:
50	50	(c) If after the hearing the commission finds that the
51	51	petition conforms to the requirements of Section 375.022(c), that
52	52	the commission is not prohibited from granting the petition by
53	53	Section 375.0225, and that the district is feasible and necessary
54	54	and would benefit the public, the commission by order shall make
55	55	that finding and grant the petition. In determining if the project
56	56	is feasible and necessary and would benefit the public, the
57	57	commission shall consider:
58	58	(1) the availability of comparable services from other
59	59	systems, including special districts, municipalities, and regional
60	60	authorities; and
61	61	(2) the reasonableness of the proposed public purpose
62	62	projects and services.
63	63	SECTION 4. Subchapter C, Chapter 375, Local Government
64	64	Code, is amended by adding Section 375.045 to read as follows:
65	65	Sec. 375.045. RESIDENTIAL PROPERTY EXCLUDED IN CERTAIN
66	66	DISTRICTS. A district created after September 1, 2017, may not
67	67	include single-family detached residential property.
68	68	SECTION 5. Section 375.063, Local Government Code, is
69	69	amended to read as follows:
70	70	Sec. 375.063. QUALIFICATIONS OF DIRECTOR. To be qualified
71	71	to serve as a director, a person must be at least 18 years old and:
72	72	(1) [a resident of the district;
73	73	[(2)] an owner of property in the district;
74	74	(2) [(3)] an owner of stock, whether beneficial or
75	75	otherwise, of a corporate owner of property in the district;
76	76	(3) [(4)] an owner of a beneficial interest in a trust
77	77	that owns property in the district; or
78	78	(4) [(5)] an agent, employee, or tenant of a person
79	79	covered by Subdivision (1), (2), or (3) [, or (4)].
80	80	SECTION 6. Sections 375.064(a), (b), and (c), Local
81	81	Government Code, are amended to read as follows:
82	82	(a) The initial and each succeeding board of directors shall,
83	83	and the owners of a majority of the assessed value of property
84	84	subject to assessment by the district may, recommend to the
85	85	governing body of the municipality persons to serve on the
86	86	succeeding board.
87	87	(b) After reviewing the recommendations, the governing body
88	88	shall approve or disapprove the directors recommended under
89	89	Subsection (a) [by the board].
90	90	(c) If the governing body is not satisfied with the
91	91	recommendations submitted under Subsection (a) [by the board], the
92	92	board, on the request of the governing body, shall submit to the
93	93	governing body additional recommendations.
94	94	SECTION 7. Subchapter E, Chapter 375, Local Government
95	95	Code, is amended by adding Section 375.099 to read as follows:
96	96	Sec. 375.099. ONLINE PUBLICATION OF FISCAL INFORMATION. A
97	97	district that maintains an Internet website shall:
98	98	(1) post the district's financial records on the
99	99	website; or
100	100	(2) provide a link on the website to another Internet
101	101	website on which the information is posted.
102	102	SECTION 8. Section 375.161, Local Government Code, is
103	103	amended to read as follows:
104	104	Sec. 375.161. [CERTAIN] RESIDENTIAL PROPERTY EXEMPTIONS
105	105	[EXEMPT]. (a) Except as provided by Subsection (b), the board may
106	106	not impose an impact fee, [assessment,] tax, or other requirement
107	107	for payment, construction, alteration, or dedication under this
108	108	chapter on single-family detached residential property, duplexes,
109	109	triplexes, and fourplexes.
110	110	(b) Subsection (a) [This section] does not apply to a tax
111	111	authorized or approved by the voters of the district or a required
112	112	payment for a service provided by the district, including water and
113	113	sewer services.
114	114	(c) The board may not impose an assessment on residential
115	115	property.
116	116	SECTION 9. Section 375.182, Local Government Code, is
117	117	amended to read as follows:
118	118	Sec. 375.182. PROHIBITED USE OF FUNDS. (a) Funds may not
119	119	be spent, an assessment imposed, or a tax levied under this chapter
120	120	to finance the opening, reopening, or maintenance of a pass, canal,
121	121	or waterway across a barrier island connecting the Gulf of Mexico
122	122	with inland waters.
123	123	(b) A district may not use the proceeds of a bond to finance
124	124	an improvement project or service outside the district.
125	125	SECTION 10. Subchapter J, Chapter 375, Local Government
126	126	Code, is amended by adding Section 375.2015 to read as follows:
127	127	Sec. 375.2015. NOTICE OF PROPOSED BOND. Before a district
128	128	may authorize the issuance of a bond, the district must mail written
129	129	notice of the proposed bond to:
130	130	(1) the governing body of each municipality and county
131	131	in which the district is located;
132	132	(2) each senator and member of the house of
133	133	representatives who represents any part of the territory of the
134	134	county in which the district is located; and
135	135	(3) each person who owns real property in the district,
136	136	according to the most recent certified county property tax rolls.
137	137	SECTION 11. Section 375.205, Local Government Code, is
138	138	amended by adding Subsection (a-1) to read as follows:
139	139	(a-1) Not earlier than the 14th day before and not later than
140	140	the seventh day before the date the district submits a bond under
141	141	Subsection (a), the district shall send notice describing the
142	142	submitted bond to:
143	143	(1) the governing body of each municipality and county
144	144	in which the district is located; and
145	145	(2) each senator and member of the house of
146	146	representatives who represents any part of the territory of the
147	147	county in which the district is located.
148	148	SECTION 12. Section 375.262, Local Government Code, is
149	149	amended to read as follows:
150	150	Sec. 375.262. DISSOLUTION BY PETITION BY OWNERS. Except as
151	151	limited by Section 375.264, the board shall dissolve the district
152	152	on written petition filed with the board by the owners of:
153	153	(1) 75 percent or more of the assessed value of the
154	154	property in the district based on the more recent certified county
155	155	property tax rolls; or
156	156	(2) 75 percent or more of the surface area of the
157	157	district, excluding roads, streets, highways, utility
158	158	rights-of-way, other public areas, and other property exempt from
159	159	assessment under Sections 375.161 and[,] 375.163, [and 375.164,]
160	160	according to the most recent certified county property tax rolls.
161	161	SECTION 13. Section 382.052(b), Local Government Code, is
162	162	amended to read as follows:
163	163	(b) If the population of the district is more than 1,000, to
164	164	be eligible to serve as a director, a person must be at least 18
165	165	years old, reside in the district, and be:
166	166	(1) an owner of property in the district;
167	167	(2) an owner of stock, whether beneficial or otherwise,
168	168	of a corporate owner of property in the district;
169	169	(3) an owner of a beneficial interest in a trust that
170	170	owns property in the district; or
171	171	(4) an agent, employee, or tenant of a person covered by
172	172	Subdivision (1), (2), or (3) [meet the qualifications of Section
173	173	375.063].
174	174	SECTION 14. Section 3855.052(b), Special District Local
175	175	Laws Code, is amended to read as follows:
176	176	(b) Section 375.063(2) [375.063(3)], Local Government Code,
177	177	does not apply to the district.
178	178	SECTION 15. Section 375.164, Local Government Code, is
179	179	repealed.
180	180	SECTION 16. Sections 375.022 and 375.025, Local Government
181	181	Code, as amended by this Act, and Section 375.0225, Local
182	182	Government Code, as added by this Act, apply only to a petition
183	183	requesting the creation of a district submitted to the Texas
184	184	Commission on Environmental Quality on or after the effective date
185	185	of this Act. A petition submitted before the effective date of
186	186	this Act is governed by the law in effect when the petition is
187	187	submitted, and the former law is continued in effect for that
188	188	purpose.
189	189	SECTION 17. The change in law made by this Act to Section
190	190	375.063, Local Government Code, does not affect the entitlement of
191	191	a member serving on the board of directors of a district to which
192	192	that section applies immediately before the effective date of this
193	193	Act to continue to carry out the board's functions for the remainder
194	194	of the member's term. The change in law applies only to a member
195	195	appointed on or after the effective date of this Act.
196	196	SECTION 18. The termination of the authority for a district
197	197	to impose an assessment on residential property under Section
198	198	375.161, Local Government Code, as amended by this Act, does not
199	199	impair an obligation created before September 1, 2017, by the
200	200	issuance of bonds or other evidence of indebtedness for which
201	201	payment was pledged from an assessment imposed as previously
202	202	authorized by Chapter 375, Local Government Code. A district from
203	203	which payment was pledged as described by this section may continue
204	204	to impose the assessment against the property until the bond or
205	205	other indebtedness is discharged, but only if the cessation of the
206	206	imposition would impair the obligation.
207	207	SECTION 19. Section 375.182(b), Local Government Code, as
208	208	added by this Act, applies only to the use of the proceeds of a bond
209	209	issued on or after the effective date of this Act. The use of
210	210	proceeds of a bond issued before that date is governed by the law in
211	211	effect on the date the bonds were issued, and that law is continued
212	212	in effect for that purpose.
213	213	SECTION 20. Sections 375.2015 and 375.205(a-1), Local
214	214	Government Code, as added by this Act, apply only to bonds issued on
215	215	or after the effective date of this Act. Bonds issued before the
216	216	effective date of this Act are governed by the law in effect on the
217	217	date the bonds were issued, and the former law is continued in
218	218	effect for that purpose.
219	219	SECTION 21. Section 375.262, Local Government Code, as
220	220	amended by this Act, applies only to a petition filed on or after
221	221	the effective date of this Act. A petition filed before the
222	222	effective date of this Act is governed by the law in effect on the
223	223	date the petition was filed, and the former law is continued in
224	224	effect for that purpose.
225	225	SECTION 22. The changes in law made by this Act may not be
226	226	construed to impair an obligation under a contract entered into on
227	227	or after the effective date of this Act. A political subdivision
228	228	may fulfill the subdivision's obligations under a contract entered
229	229	into before that date but may not extend such a contract beyond the
230	230	contract's original term.
231	231	SECTION 23. This Act takes effect September 1, 2017.