Texas 2019 - 86th Regular

Texas House Bill HB3374 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3374
	1	+	By: Metcalf (Senate Sponsor - Creighton) H.B. No. 3374
	2	+	(In the Senate - Received from the House April 29, 2019;
	3	+	April 30, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 17, 2019, reported favorably by
	5	+	the following vote: Yeas 7, Nays 0; May 17, 2019, 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 powers and duties of the Cleveland Municipal
6	12		Utility District No. 1 of Montgomery County, Texas; providing
7	13		authority to issue bonds; providing authority to impose a tax.
8	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	15		SECTION 1. Subtitle F, Title 6, Special District Local Laws
10	16		Code, is amended by adding Chapter 8073 to read as follows:
11	17		CHAPTER 8073. CLEVELAND MUNICIPAL UTILITY DISTRICT NO. 1 OF
12	18		MONTGOMERY COUNTY, TEXAS
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 8073.0101. DEFINITIONS. In this chapter:
15	21		(1) "Board" means the district's board of directors.
16	22		(2) "District" means the Cleveland Municipal Utility
17	23		District No. 1 of Montgomery County, Texas.
18	24		Sec. 8073.0102. NATURE AND PURPOSES OF DISTRICT. (a) The
19	25		district is a municipal utility district created under Section 59,
20	26		Article XVI, Texas Constitution.
21	27		(b) The district is created to accomplish the purposes of:
22	28		(1) a municipal utility district as provided by
23	29		general law and Section 59, Article XVI, Texas Constitution; and
24	30		(2) Section 52, Article III, Texas Constitution, that
25	31		relate to the construction, acquisition, improvement, operation,
26	32		or maintenance of macadamized, graveled, or paved roads, or
27	33		improvements, including storm drainage, in aid of those roads.
28	34		Sec. 8073.0103. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT
29	35		REINVESTMENT ZONE. (a) All or part of the district is eligible to
30	36		be included in a tax increment reinvestment zone created under
31	37		Chapter 311, Tax Code.
32	38		(b) If the City of Cleveland has created or creates a tax
33	39		increment reinvestment zone described by Subsection (a) that
34	40		includes all or part of the territory of the district, the City of
35	41		Cleveland and the board of directors of the zone, by contract with
36	42		the district, may grant money to the district from the tax increment
37	43		fund to be used for a permissible purpose of the district, including
38	44		the right to pledge the money as security for a bond or other
39	45		obligation issued by the district.
40	46		SUBCHAPTER B. POWERS AND DUTIES
41	47		Sec. 8073.0201. GENERAL POWERS AND DUTIES. The district
42	48		has the powers and duties necessary to accomplish the purposes for
43	49		which the district is created.
44	50		Sec. 8073.0202. MUNICIPAL UTILITY DISTRICT POWERS AND
45	51		DUTIES. The district has the powers and duties provided by the
46	52		general law of this state, including Chapters 49 and 54, Water Code,
47	53		applicable to municipal utility districts created under Section 59,
48	54		Article XVI, Texas Constitution.
49	55		Sec. 8073.0203. AUTHORITY FOR ROAD PROJECTS. Under Section
50	56		52, Article III, Texas Constitution, the district may design,
51	57		acquire, construct, finance, issue bonds for, improve, operate,
52	58		maintain, and convey to this state, a county, or a municipality for
53	59		operation and maintenance macadamized, graveled, or paved roads, or
54	60		improvements, including storm drainage, in aid of those roads.
55	61		Sec. 8073.0204. ROAD STANDARDS AND REQUIREMENTS. (a) A
56	62		road project must meet all applicable construction standards,
57	63		zoning and subdivision requirements, and regulations of each
58	64		municipality in whose corporate limits or extraterritorial
59	65		jurisdiction the road project is located.
60	66		(b) If a road project is not located in the corporate limits
61	67		or extraterritorial jurisdiction of a municipality, the road
62	68		project must meet all applicable construction standards,
63	69		subdivision requirements, and regulations of each county in which
64	70		the road project is located.
65	71		(c) If the state will maintain and operate the road, the
66	72		Texas Transportation Commission must approve the plans and
67	73		specifications of the road project.
68	74		Sec. 8073.0205. DIVISION OF DISTRICT. (a) The district may
69	75		be divided into two or more new districts only if the district:
70	76		(1) has no outstanding bonded debt; and
71	77		(2) is not imposing ad valorem taxes.
72	78		(b) This chapter applies to any new district created by the
73	79		division of the district, and a new district has all the powers and
74	80		duties of the district.
75	81		(c) Any new district created by the division of the district
76	82		may, at the time the new district is created, contain only:
77	83		(1) land within the initial boundaries of the
78	84		district; or
79	85		(2) land adjacent to the initial boundaries of the
80	86		district if that adjacent land is:
81	87		(A) not within the extraterritorial jurisdiction
82	88		of a city; or
83	89		(B) within the extraterritorial jurisdiction of
84	90		a city and that adjacent land has been approved for inclusion in the
85	91		district under a consent ordinance or resolution adopted by the
86	92		city.
87	93		(d) The board, on its own motion or on receipt of a petition
88	94		signed by the owner or owners of a majority of the assessed value of
89	95		the real property in the district, may adopt an order dividing the
90	96		district.
91	97		(e) An order dividing the district must:
92	98		(1) name each new district;
93	99		(2) include the metes and bounds description of the
94	100		territory of each new district;
95	101		(3) appoint temporary directors for each new district;
96	102		and
97	103		(4) provide for the division of assets and liabilities
98	104		between or among the new districts.
99	105		(f) On or before the 30th day after the date of adoption of
100	106		an order dividing the district, the district shall file the order
101	107		with the Texas Commission on Environmental Quality and record the
102	108		order in the real property records of each county in which the
103	109		district is located.
104	110		(g) Any new district created by the division of the district
105	111		shall hold a confirmation and directors' election as required by
106	112		Section 49.102, Water Code.
107	113		(h) Except as provided by Subsection (c), municipal consent
108	114		by a city is not required for the creation of any new district
109	115		created under this section.
110	116		(i) Any new district created by the division of the district
111	117		must hold an election as required by this chapter to obtain voter
112	118		approval before the district may impose a maintenance tax or issue
113	119		bonds payable wholly or partly from ad valorem taxes.
114	120		(j) If the voters of a new district do not confirm the
115	121		creation of the new district, the assets, obligations, territory,
116	122		and governance of the new district revert to that of the original
117	123		district.
118	124		SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS
119	125		Sec. 8073.0301. AUTHORITY TO ISSUE BONDS AND OTHER
120	126		OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or
121	127		other obligations payable wholly or partly from ad valorem taxes,
122	128		impact fees, revenue, contract payments, grants, revenue from a tax
123	129		increment reinvestment zone created under Chapter 311, Tax Code,
124	130		other district money, or any combination of those sources to pay for
125	131		a road project authorized by Section 8073.0203.
126	132		(b) The district may not issue bonds payable from ad valorem
127	133		taxes to finance a road project unless the issuance is approved by a
128	134		vote of a two-thirds majority of the district voters voting at an
129	135		election held for that purpose.
130	136		(c) At the time of issuance, the total principal amount of
131	137		bonds or other obligations issued or incurred to finance road
132	138		projects and payable from ad valorem taxes may not exceed
133	139		one-fourth of the assessed value of the real property in the
134	140		district.
135	141		Sec. 8073.0302. TAXES FOR BONDS. At the time the district
136	142		issues bonds payable wholly or partly from ad valorem taxes, the
137	143		board shall provide for the annual imposition of a continuing
138	144		direct ad valorem tax, without limit as to rate or amount, while all
139	145		or part of the bonds are outstanding as required and in the manner
140	146		provided by Sections 54.601 and 54.602, Water Code.
141	147		SECTION 2. The Cleveland Municipal Utility District No. 1
142	148		of Montgomery County, Texas, retains all the rights, powers,
143	149		privileges, authority, duties, and functions that it had before the
144	150		effective date of this Act.
145	151		SECTION 3. (a) The legislature validates and confirms all
146	152		governmental acts and proceedings of the Cleveland Municipal
147	153		Utility District No. 1 of Montgomery County, Texas, that were taken
148	154		before the effective date of this Act.
149	155		(b) This section does not apply to any matter that on the
150	156		effective date of this Act:
151	157		(1) is involved in litigation if the litigation
152	158		ultimately results in the matter being held invalid by a final court
153	159		judgment; or
154	160		(2) has been held invalid by a final court judgment.
155	161		SECTION 4. (a) The legal notice of the intention to
156	162		introduce this Act, setting forth the general substance of this
157	163		Act, has been published as provided by law, and the notice and a
158	164		copy of this Act have been furnished to all persons, agencies,
159	165		officials, or entities to which they are required to be furnished
160	166		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
161	167		Government Code.
162	168		(b) The governor, one of the required recipients, has
163	169		submitted the notice and Act to the Texas Commission on
164	170		Environmental Quality.
165	171		(c) The Texas Commission on Environmental Quality has filed
166	172		its recommendations relating to this Act with the governor, the
167	173		lieutenant governor, and the speaker of the house of
168	174		representatives within the required time.
169	175		(d) All requirements of the constitution and laws of this
170	176		state and the rules and procedures of the legislature with respect
171	177		to the notice, introduction, and passage of this Act are fulfilled
172	178		and accomplished.
173	179		SECTION 5. This Act takes effect immediately if it receives
174	180		a vote of two-thirds of all the members elected to each house, as
175	181		provided by Section 39, Article III, Texas Constitution. If this
176	182		Act does not receive the vote necessary for immediate effect, this
177	183		Act takes effect September 1, 2019.
178		-	______________________________ ______________________________
179		-	President of the Senate Speaker of the House
180		-	I certify that H.B. No. 3374 was passed by the House on April
181		-	26, 2019, by the following vote: Yeas 130, Nays 9, 2 present, not
182		-	voting.
183		-	______________________________
184		-	Chief Clerk of the House
185		-	I certify that H.B. No. 3374 was passed by the Senate on May
186		-	22, 2019, by the following vote: Yeas 30, Nays 1.
187		-	______________________________
188		-	Secretary of the Senate
189		-	APPROVED: _____________________
190		-	Date
191		-	_____________________
192		-	Governor
	184	+	* * * * *