Texas 2019 - 86th Regular

Texas House Bill HB4636 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4636
	1	+	By: Zerwas (Senate Sponsor - Kolkhorst) H.B. No. 4636
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 6, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 15, 2019, reported favorably by
	5	+	the following vote: Yeas 7, Nays 0; May 15, 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 creation of the Orchard Municipal Utility District
6	12		No. 1; granting a limited power of eminent domain; providing
7	13		authority to issue bonds; providing authority to impose
8	14		assessments, fees, and taxes.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	17		Code, is amended by adding Chapter 8079 to read as follows:
12	18		CHAPTER 8079. ORCHARD MUNICIPAL UTILITY DISTRICT NO. 1
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 8079.0101. DEFINITIONS. In this chapter:
15	21		(1) "Board" means the district's board of directors.
16	22		(2) "Commission" means the Texas Commission on
17	23		Environmental Quality.
18	24		(3) "Director" means a board member.
19	25		(4) "District" means the Orchard Municipal Utility
20	26		District No. 1.
21	27		Sec. 8079.0102. NATURE OF DISTRICT. The district is a
22	28		municipal utility district created under Section 59, Article XVI,
23	29		Texas Constitution.
24	30		Sec. 8079.0103. CONFIRMATION AND DIRECTORS' ELECTION
25	31		REQUIRED. The temporary directors shall hold an election to
26	32		confirm the creation of the district and to elect five permanent
27	33		directors as provided by Section 49.102, Water Code.
28	34		Sec. 8079.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	35		temporary directors may not hold an election under Section
30	36		8079.0103 or 8079.0401, issue bonds, or incur debt until each
31	37		municipality in whose corporate limits or extraterritorial
32	38		jurisdiction the district is located has consented by ordinance or
33	39		resolution to the creation of the district and to the inclusion of
34	40		land in the district.
35	41		Sec. 8079.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
36	42		(a) The district is created to serve a public purpose and benefit.
37	43		(b) The district is created to accomplish the purposes of:
38	44		(1) a municipal utility district as provided by
39	45		general law and Section 59, Article XVI, Texas Constitution; and
40	46		(2) Section 52, Article III, Texas Constitution, that
41	47		relate to the construction, acquisition, improvement, operation,
42	48		or maintenance of macadamized, graveled, or paved roads, or
43	49		improvements, including storm drainage, in aid of those roads.
44	50		Sec. 8079.0106. INITIAL DISTRICT TERRITORY. (a) The
45	51		district is initially composed of the territory described by
46	52		Section 2 of the Act enacting this chapter.
47	53		(b) The boundaries and field notes contained in Section 2 of
48	54		the Act enacting this chapter form a closure. A mistake made in the
49	55		field notes or in copying the field notes in the legislative process
50	56		does not affect the district's:
51	57		(1) organization, existence, or validity;
52	58		(2) right to issue any type of bond for the purposes
53	59		for which the district is created or to pay the principal of and
54	60		interest on a bond;
55	61		(3) right to impose a tax; or
56	62		(4) legality or operation.
57	63		SUBCHAPTER B. BOARD OF DIRECTORS
58	64		Sec. 8079.0201. GOVERNING BODY; TERMS. (a) The district is
59	65		governed by a board of five elected directors.
60	66		(b) Except as provided by Section 8079.0202, directors
61	67		serve staggered four-year terms.
62	68		Sec. 8079.0202. TEMPORARY DIRECTORS. (a) On or after the
63	69		effective date of the Act enacting this chapter, the owner or owners
64	70		of a majority of the assessed value of the real property in the
65	71		district may submit a petition to the commission requesting that
66	72		the commission appoint as temporary directors the five persons
67	73		named in the petition. The commission shall appoint as temporary
68	74		directors the five persons named in the petition.
69	75		(b) Temporary directors serve until the earlier of:
70	76		(1) the date permanent directors are elected under
71	77		Section 8079.0103; or
72	78		(2) the fourth anniversary of the effective date of
73	79		the Act enacting this chapter.
74	80		(c) If permanent directors have not been elected under
75	81		Section 8079.0103 and the terms of the temporary directors have
76	82		expired, successor temporary directors shall be appointed or
77	83		reappointed as provided by Subsection (d) to serve terms that
78	84		expire on the earlier of:
79	85		(1) the date permanent directors are elected under
80	86		Section 8079.0103; or
81	87		(2) the fourth anniversary of the date of the
82	88		appointment or reappointment.
83	89		(d) If Subsection (c) applies, the owner or owners of a
84	90		majority of the assessed value of the real property in the district
85	91		may submit a petition to the commission requesting that the
86	92		commission appoint as successor temporary directors the five
87	93		persons named in the petition. The commission shall appoint as
88	94		successor temporary directors the five persons named in the
89	95		petition.
90	96		SUBCHAPTER C. POWERS AND DUTIES
91	97		Sec. 8079.0301. GENERAL POWERS AND DUTIES. The district
92	98		has the powers and duties necessary to accomplish the purposes for
93	99		which the district is created.
94	100		Sec. 8079.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
95	101		DUTIES. The district has the powers and duties provided by the
96	102		general law of this state, including Chapters 49 and 54, Water Code,
97	103		applicable to municipal utility districts created under Section 59,
98	104		Article XVI, Texas Constitution.
99	105		Sec. 8079.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
100	106		52, Article III, Texas Constitution, the district may design,
101	107		acquire, construct, finance, issue bonds for, improve, operate,
102	108		maintain, and convey to this state, a county, or a municipality for
103	109		operation and maintenance macadamized, graveled, or paved roads, or
104	110		improvements, including storm drainage, in aid of those roads.
105	111		Sec. 8079.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
106	112		road project must meet all applicable construction standards,
107	113		zoning and subdivision requirements, and regulations of each
108	114		municipality in whose corporate limits or extraterritorial
109	115		jurisdiction the road project is located.
110	116		(b) If a road project is not located in the corporate limits
111	117		or extraterritorial jurisdiction of a municipality, the road
112	118		project must meet all applicable construction standards,
113	119		subdivision requirements, and regulations of each county in which
114	120		the road project is located.
115	121		(c) If the state will maintain and operate the road, the
116	122		Texas Transportation Commission must approve the plans and
117	123		specifications of the road project.
118	124		Sec. 8079.0305. COMPLIANCE WITH MUNICIPAL CONSENT
119	125		ORDINANCE OR RESOLUTION. The district shall comply with all
120	126		applicable requirements of any ordinance or resolution that is
121	127		adopted under Section 54.016 or 54.0165, Water Code, and that
122	128		consents to the creation of the district or to the inclusion of land
123	129		in the district.
124	130		Sec. 8079.0306. DIVISION OF DISTRICT. (a) The district may
125	131		be divided into two or more new districts only if the district:
126	132		(1) has no outstanding bonded debt; and
127	133		(2) is not imposing ad valorem taxes.
128	134		(b) This chapter applies to any new district created by the
129	135		division of the district, and a new district has all the powers and
130	136		duties of the district.
131	137		(c) Any new district created by the division of the district
132	138		may not, at the time the new district is created, contain any land
133	139		outside the area described by Section 2 of the Act enacting this
134	140		chapter.
135	141		(d) The board, on its own motion or on receipt of a petition
136	142		signed by the owner or owners of a majority of the assessed value of
137	143		the real property in the district, may adopt an order dividing the
138	144		district.
139	145		(e) The board may adopt an order dividing the district
140	146		before or after the date the board holds an election under Section
141	147		8079.0103 to confirm the district's creation.
142	148		(f) An order dividing the district must:
143	149		(1) name each new district;
144	150		(2) include the metes and bounds description of the
145	151		territory of each new district;
146	152		(3) appoint temporary directors for each new district;
147	153		and
148	154		(4) provide for the division of assets and liabilities
149	155		between or among the new districts.
150	156		(g) On or before the 30th day after the date of adoption of
151	157		an order dividing the district, the district shall file the order
152	158		with the commission and record the order in the real property
153	159		records of each county in which the district is located.
154	160		(h) Any new district created by the division of the district
155	161		shall hold a confirmation and directors' election as required by
156	162		Section 8079.0103.
157	163		(i) Municipal consent to the creation of the district and to
158	164		the inclusion of land in the district granted under Section
159	165		8079.0104 acts as municipal consent to the creation of any new
160	166		district created by the division of the district and to the
161	167		inclusion of land in the new district.
162	168		(j) Any new district created by the division of the district
163	169		must hold an election as required by this chapter to obtain voter
164	170		approval before the district may impose a maintenance tax or issue
165	171		bonds payable wholly or partly from ad valorem taxes.
166	172		(k) If the creation of the new district is confirmed, the
167	173		new district shall provide the election date and results to the
168	174		commission.
169	175		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
170	176		Sec. 8079.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
171	177		The district may issue, without an election, bonds and other
172	178		obligations secured by:
173	179		(1) revenue other than ad valorem taxes; or
174	180		(2) contract payments described by Section 8079.0403.
175	181		(b) The district must hold an election in the manner
176	182		provided by Chapters 49 and 54, Water Code, to obtain voter approval
177	183		before the district may impose an ad valorem tax or issue bonds
178	184		payable from ad valorem taxes.
179	185		(c) The district may not issue bonds payable from ad valorem
180	186		taxes to finance a road project unless the issuance is approved by a
181	187		vote of a two-thirds majority of the district voters voting at an
182	188		election held for that purpose.
183	189		Sec. 8079.0402. OPERATION AND MAINTENANCE TAX. (a) If
184	190		authorized at an election held under Section 8079.0401, the
185	191		district may impose an operation and maintenance tax on taxable
186	192		property in the district in accordance with Section 49.107, Water
187	193		Code.
188	194		(b) The board shall determine the tax rate. The rate may not
189	195		exceed the rate approved at the election.
190	196		Sec. 8079.0403. CONTRACT TAXES. (a) In accordance with
191	197		Section 49.108, Water Code, the district may impose a tax other than
192	198		an operation and maintenance tax and use the revenue derived from
193	199		the tax to make payments under a contract after the provisions of
194	200		the contract have been approved by a majority of the district voters
195	201		voting at an election held for that purpose.
196	202		(b) A contract approved by the district voters may contain a
197	203		provision stating that the contract may be modified or amended by
198	204		the board without further voter approval.
199	205		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
200	206		Sec. 8079.0501. AUTHORITY TO ISSUE BONDS AND OTHER
201	207		OBLIGATIONS. The district may issue bonds or other obligations
202	208		payable wholly or partly from ad valorem taxes, impact fees,
203	209		revenue, contract payments, grants, or other district money, or any
204	210		combination of those sources, to pay for any authorized district
205	211		purpose.
206	212		Sec. 8079.0502. TAXES FOR BONDS. At the time the district
207	213		issues bonds payable wholly or partly from ad valorem taxes, the
208	214		board shall provide for the annual imposition of a continuing
209	215		direct ad valorem tax, without limit as to rate or amount, while all
210	216		or part of the bonds are outstanding as required and in the manner
211	217		provided by Sections 54.601 and 54.602, Water Code.
212	218		Sec. 8079.0503. BONDS FOR ROAD PROJECTS. At the time of
213	219		issuance, the total principal amount of bonds or other obligations
214	220		issued or incurred to finance road projects and payable from ad
215	221		valorem taxes may not exceed one-fourth of the assessed value of the
216	222		real property in the district.
217	223		SECTION 2. The Orchard Municipal Utility District No. 1
218	224		initially includes all the territory contained in the following
219	225		area:
220	226		A Field Note Description of 1443 Acres of Land, more or less,
221	227		being in the Heirs of L. Burknapp Survey, Abstract 109; B.B.B. & C.
222	228		Railroad Company Survey No. 19, Abstract 135; German Emigration
223	229		Company Survey, Abstract 181; W.T. Lightfoot Survey, Abstract 282
224	230		and Yandell Ferris Survey, Abstract 376, Fort Bend County, Texas.
225	231		Beginning at a point in Long Lane marking the Southeast
226	232		corner of the Gail Borden League, Abstract 12; said point being in a
227	233		West line of this tract;
228	234		THENCE, North, 784 feet, more or less, along the East line of
229	235		said Gail Borden League, Abstract 12 and a West line of said L.
230	236		Burknapp Survey, Abstact 109 and the centerline of Long Lane to a
231	237		point marking the Northwest corner of this tract;
232	238		THENCE, East, 2403 feet, more or less, along the North line of
233	239		said Heirs of L. Burknapp Survey, Abstract 109 and the centerline of
234	240		Roper Road to a point for corner;
235	241		THENCE, South, 1212 feet, more or less, along the West line of
236	242		the said W.T. Lightfoot Survey, Abstract 282 to a point for corner;
237	243		THENCE, East, 3662 feet, more or less, along the South line of
238	244		five (5) parcels owned by others to a point in the East line of said
239	245		W.T. Lightfoot Survey, Abstract 282 for re-entrant corner;
240	246		THENCE, North, 1298 feet, more or less, to the Northwest
241	247		corner of the said German Emigration Company Survey, Abstract 181
242	248		for corner;
243	249		THENCE, East, 8340 feet, more or less, along the North line of
244	250		said German Emigration Company Survey, Abstract 181 and the North
245	251		line of the said B.B.B. & C. Railroad Company Survey No. 19,
246	252		Abstract 135 to the Northeast corner of said B.B.B. & C. Railroad
247	253		Company Survey No. 19, Abstract 135 and Southeast corner of the
248	254		Sarah Kennedy League, Abstract 45 and being in the West line of the
249	255		Nancy Spencer Survey, Abstract 88;
250	256		THENCE, South, along the East line of said B.B.B. & C.
251	257		Railroad Company Survey No. 19, Abstract 135 and the Yandell Ferris
252	258		Survey, Abstract 376 and being in the West line of the Nancy Spencer
253	259		League, Abstract 88, 4586 feet, more or less to a point for corner
254	260		in a Westerly City of Rosenberg 5280 foot Radius Extra-Territorial
255	261		Jurisdiction Line for corner;
256	262		THENCE, South 35deg.18' West, 1959 feet more or less, along
257	263		said City of Rosenberg 5280 foot Radius Extra-Territorial
258	264		Jurisdiction Line curve to the left, to a point in the Northeast
259	265		line of the G.C. & S.F. Railroad right-of-way for corner;
260	266		THENCE, North 70deg.24' West, 845 feet, more or less, along
261	267		said Northeast line of the G.C. & S.F. Railroad right-of-way to a
262	268		point for corner;
263	269		THENCE, South, crossing the G.C. & S.F. Railroad
264	270		right-of-way and State Highway No. 36 then along the East line of
265	271		the 85 Acre Lot 2, a total distance of 2426 feet, more or less, to
266	272		the Southeast corner of the Wade McNeill call 85 Acre Lot 2 of the
267	273		J.M. MOORE SUBDIVISION (Volume 109, Page 585; Deed Records);
268	274		THENCE, West, 1479 feet, more or less, to the Southwest
269	275		corner of said 85 Acre Tract;
270	276		THENCE, North, 2695 feet, more of less, to a point in the
271	277		Southwest line of State Highway No. 36 marking the Northwest corner
272	278		of said McNeill Tract;
273	279		THENCE, North 70deg.14' West, 3493 feet, more or less, along
274	280		said Southwest line of said State Highway No. 36 to a point in the
275	281		West line of said Yandell Ferris Survey and East line of the said
276	282		German Emigration Company Survey, Abstract 181 for corner;
277	283		THENCE, South, 978 feet, along the West line of said Yandell
278	284		Ferris Survey and East line of the German Emigration Company
279	285		Survey, Abstract 181 to the Northeast corner of the Heirs of L.
280	286		Burknapp Survey, Abstract 109 for corner;
281	287		THENCE, West, 1638 feet, more or less, along the South line of
282	288		said German Emigration Company Survey, Abstract 181 and a North
283	289		line of said Heirs of L. Burknapp Survey, Abstract 109 to a point in
284	290		the East line of said W.T. Lightfoot Survey, Abstract 283 for
285	291		corner;
286	292		THENCE, North, 1577 feet, more or less, along the West line of
287	293		the German Emigration Company Survey, Abstract 181 and East line of
288	294		said W.T. Lightfoot Survey, Abstract 283 to a point in the Southwest
289	295		line of the State Highway No. 36 for corner;
290	296		THENCE, North 70deg.17' West, 390 feet, more or less along
291	297		the North line of said W.T. Lightfoot Survey, Abstract 283 and South
292	298		line of the said W.T. Lightfoot Survey, Abstract 282 for corner;
293	299		THENCE, West, 3393 feet, along said North line of said W.T.
294	300		Lightfoot Survey, Abstract 283 and South line of the W.T. Lightfoot
295	301		Survey, Abstract 282 to the Southwest corner of said W.T. Lightfoot
296	302		Survey, Abstract 282;
297	303		THENCE, North, 564 feet, more or less, to angle point;
298	304		THENCE, North 8deg.26' East, 514.22 feet, more or less, to a
299	305		point in the Southwest line of said State Highway No. 36 for corner;
300	306		THENCE, North 70deg.08' West, 2524.26 feet, more or less,
301	307		along the Southwest line of said State Highway No. 36 to a point
302	308		marking the Southwest corner for this tract;
303	309		THENCE, North, crossing State Highway No. 36 and said G.C. &
304	310		S.F. Railroad right-of-way, then along the centerline of Long Lane
305	311		in all, 915 feet, more or less, to the place of beginning and
306	312		containing 1443 Acres of Land, more or less.
307	313		SECTION 3. (a) The legal notice of the intention to
308	314		introduce this Act, setting forth the general substance of this
309	315		Act, has been published as provided by law, and the notice and a
310	316		copy of this Act have been furnished to all persons, agencies,
311	317		officials, or entities to which they are required to be furnished
312	318		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
313	319		Government Code.
314	320		(b) The governor, one of the required recipients, has
315	321		submitted the notice and Act to the Texas Commission on
316	322		Environmental Quality.
317	323		(c) The Texas Commission on Environmental Quality has filed
318	324		its recommendations relating to this Act with the governor, the
319	325		lieutenant governor, and the speaker of the house of
320	326		representatives within the required time.
321	327		(d) All requirements of the constitution and laws of this
322	328		state and the rules and procedures of the legislature with respect
323	329		to the notice, introduction, and passage of this Act are fulfilled
324	330		and accomplished.
325	331		SECTION 4. (a) If this Act does not receive a two-thirds
326	332		vote of all the members elected to each house, Subchapter C, Chapter
327	333		8079, Special District Local Laws Code, as added by Section 1 of
328	334		this Act, is amended by adding Section 8079.0307 to read as follows:
329	335		Sec. 8079.0307. NO EMINENT DOMAIN POWER. The district may
330	336		not exercise the power of eminent domain.
331	337		(b) This section is not intended to be an expression of a
332	338		legislative interpretation of the requirements of Section 17(c),
333	339		Article I, Texas Constitution.
334	340		SECTION 5. This Act takes effect immediately if it receives
335	341		a vote of two-thirds of all the members elected to each house, as
336	342		provided by Section 39, Article III, Texas Constitution. If this
337	343		Act does not receive the vote necessary for immediate effect, this
338	344		Act takes effect September 1, 2019.
339		-	______________________________ ______________________________
340		-	President of the Senate Speaker of the House
341		-	I certify that H.B. No. 4636 was passed by the House on May 3,
342		-	2019, by the following vote: Yeas 125, Nays 15, 2 present, not
343		-	voting.
344		-	______________________________
345		-	Chief Clerk of the House
346		-	I certify that H.B. No. 4636 was passed by the Senate on May
347		-	21, 2019, by the following vote: Yeas 30, Nays 1.
348		-	______________________________
349		-	Secretary of the Senate
350		-	APPROVED: _____________________
351		-	Date
352		-	_____________________
353		-	Governor
	345	+	* * * * *