By: Metcalf (Senate Sponsor - Creighton) H.B. No. 4654
(In the Senate - Received from the House April 29, 2019;
April 29, 2019, read first time and referred to Committee on
Administration; May 3, 2019, reported favorably by the following
vote: Yeas 4, Nays 0; May 3, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the board of directors and powers and duties of the East
Montgomery County Municipal Utility District No. 12; 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. Section 8116.002, Special District Local Laws
Code, is amended to read as follows:
Sec. 8116.002. NATURE AND PURPOSES OF DISTRICT. (a) The
district is [a municipal utility district in Montgomery County]
created to serve a public purpose and benefit [under and essential
to accomplish the purposes of Section 59, Article XVI, Texas
Constitution].
(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.
SECTION 2. Section 8116.051(b), Special District Local Laws
Code, is amended to read as follows:
(b) Except as provided by Section 8116.053, directors
[Directors] serve staggered four-year terms.
SECTION 3. Subchapter B, Chapter 8116, Special District
Local Laws Code, is amended by adding Section 8116.053 to read as
follows:
Sec. 8116.053. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Larry Williams;
(2) Rachel Maybray;
(3) Michael Others;
(4) Virginia French; and
(5) Valerie Mullan.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected at an
election held under Section 49.102, Water Code; or
(2) the fourth anniversary of the effective date of
the Act enacting this section.
(c) If permanent directors have not been elected at an
election held under Section 49.102, Water Code, 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 at an
election held under Section 49.102, Water Code; 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 Texas Commission on Environmental
Quality requesting that the commission appoint as successor
temporary directors the five persons named in the petition. The
Texas Commission on Environmental Quality shall appoint as
successor temporary directors the five persons named in the
petition.
SECTION 4. Subchapter C, Chapter 8116, Special District
Local Laws Code, is amended by adding Sections 8116.104, 8116.105,
8116.106, and 8116.107 to read as follows:
Sec. 8116.104. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8116.105. 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. 8116.106. 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. 8116.107. 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.
SECTION 5. Chapter 8116, Special District Local Laws Code,
is amended by adding Subchapters D and E to read as follows:
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8116.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 8116.153.
(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. 8116.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8116.151, 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.
Sec. 8116.153. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8116.201. 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. 8116.202. 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. 8116.203. 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 6. The following provisions of the Special District
Local Laws Code are repealed:
(1) Subchapter A1, Chapter 8116; and
(2) Section 8116.052.
SECTION 7. The East Montgomery County Municipal Utility
District No. 12 retains all the rights, powers, privileges,
authority, duties, and functions that it had before the effective
date of this Act.
SECTION 8. (a) The legislature validates and confirms all
governmental acts and proceedings of the East Montgomery County
Municipal Utility District No. 12 that were taken before the
effective date of this Act.
(b) This section does not apply to any matter that on the
effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final court
judgment; or
(2) has been held invalid by a final court judgment.
SECTION 9. (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 10. 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, 2019.
* * * * *