Texas 2019 - 86th Regular

Texas House Bill HB4711 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R14489 SLB-F
2	2	By: Bailes H.B. No. 4711
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the conversion of the May Public Utility District to the
8	8	Harris-Liberty Counties Municipal Utility District No. 1; granting
9	9	a limited power of eminent domain; providing authority to issue
10	10	bonds; providing authority to impose assessments, fees, or taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The May Public Utility District is converted to
13	13	the Harris-Liberty Counties Municipal Utility District No. 1 and is
14	14	governed by Chapter 7893, Special District Local Laws Code, as
15	15	added by this Act.
16	16	SECTION 2. Subtitle F, Title 6, Special District Local Laws
17	17	Code, is amended by adding Chapter 7893 to read as follows:
18	18	CHAPTER 7893. HARRIS-LIBERTY COUNTIES MUNICIPAL UTILITY DISTRICT
19	19	NO. 1
20	20	SUBCHAPTER A. GENERAL PROVISIONS
21	21	Sec. 7893.0101. DEFINITIONS. In this chapter:
22	22	(1) "Board" means the district's board of directors.
23	23	(2) "Commission" means the Texas Commission on
24	24	Environmental Quality.
25	25	(3) "Director" means a board member.
26	26	(4) "District" means the Harris-Liberty Counties
27	27	Municipal Utility District No. 1.
28	28	Sec. 7893.0102. NATURE OF DISTRICT. The district is a
29	29	district created under Section 59, Article XVI, Texas Constitution,
30	30	as the May Public Utility District and converted to a municipal
31	31	utility district as the Harris-Liberty Counties Municipal Utility
32	32	District No. 1.
33	33	Sec. 7893.0103. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
34	34	(a) The district is converted and operates to serve a public
35	35	purpose and benefit.
36	36	(b) The district is converted and operates to accomplish the
37	37	purposes of:
38	38	(1) a municipal utility district as provided by
39	39	general law and Section 59, Article XVI, Texas Constitution; and
40	40	(2) Section 52, Article III, Texas Constitution, that
41	41	relate to the construction, acquisition, improvement, operation,
42	42	or maintenance of macadamized, graveled, or paved roads, or
43	43	improvements, including storm drainage, in aid of those roads.
44	44	Sec. 7893.0104. DISTRICT TERRITORY. The district is
45	45	composed of the territory of the former May Public Utility District
46	46	as that territory existed on January 1, 2019.
47	47	SUBCHAPTER B. BOARD OF DIRECTORS
48	48	Sec. 7893.0201. GOVERNING BODY; TERMS. (a) The district is
49	49	governed by a board of five elected directors.
50	50	(b) Except as provided by Section 7893.0202, directors
51	51	serve staggered four-year terms.
52	52	Sec. 7893.0202. TEMPORARY DIRECTORS. (a) On or after the
53	53	effective date of the Act enacting this chapter, the owner or owners
54	54	of a majority of the assessed value of the real property in the
55	55	district may submit a petition to the commission requesting that
56	56	the commission appoint as temporary directors the five persons
57	57	named in the petition. The commission shall appoint as temporary
58	58	directors the five persons named in the petition.
59	59	(b) Temporary directors serve until the earlier of:
60	60	(1) the date permanent directors are elected at an
61	61	election held under Section 49.102, Water Code; or
62	62	(2) the fourth anniversary of the effective date of
63	63	the Act enacting this chapter.
64	64	(c) If permanent directors have not been elected at an
65	65	election held under Section 49.102, Water Code, and the terms of the
66	66	temporary directors have expired, successor temporary directors
67	67	shall be appointed or reappointed as provided by Subsection (d) to
68	68	serve terms that expire on the earlier of:
69	69	(1) the date permanent directors are elected at an
70	70	election held under Section 49.102, Water Code; or
71	71	(2) the fourth anniversary of the date of the
72	72	appointment or reappointment.
73	73	(d) If Subsection (c) applies, the owner or owners of a
74	74	majority of the assessed value of the real property in the district
75	75	may submit a petition to the commission requesting that the
76	76	commission appoint as successor temporary directors the five
77	77	persons named in the petition. The commission shall appoint as
78	78	successor temporary directors the five persons named in the
79	79	petition.
80	80	SUBCHAPTER C. POWERS AND DUTIES
81	81	Sec. 7893.0301. GENERAL POWERS AND DUTIES. The district
82	82	has the powers and duties necessary to accomplish the purposes
83	83	described by this chapter.
84	84	Sec. 7893.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
85	85	DUTIES. The district has the powers and duties provided by the
86	86	general law of this state, including Chapters 49 and 54, Water Code,
87	87	applicable to municipal utility districts created under Section 59,
88	88	Article XVI, Texas Constitution.
89	89	Sec. 7893.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
90	90	52, Article III, Texas Constitution, the district may design,
91	91	acquire, construct, finance, issue bonds for, improve, operate,
92	92	maintain, and convey to this state, a county, or a municipality for
93	93	operation and maintenance macadamized, graveled, or paved roads, or
94	94	improvements, including storm drainage, in aid of those roads.
95	95	Sec. 7893.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
96	96	road project must meet all applicable construction standards,
97	97	zoning and subdivision requirements, and regulations of each
98	98	municipality in whose corporate limits or extraterritorial
99	99	jurisdiction the road project is located.
100	100	(b) If a road project is not located in the corporate limits
101	101	or extraterritorial jurisdiction of a municipality, the road
102	102	project must meet all applicable construction standards,
103	103	subdivision requirements, and regulations of each county in which
104	104	the road project is located.
105	105	(c) If the state will maintain and operate the road, the
106	106	Texas Transportation Commission must approve the plans and
107	107	specifications of the road project.
108	108	Sec. 7893.0305. COMPLIANCE WITH MUNICIPAL CONSENT
109	109	ORDINANCE OR RESOLUTION. The district shall comply with all
110	110	applicable requirements of any ordinance or resolution that is
111	111	adopted under Section 54.016 or 54.0165, Water Code.
112	112	Sec. 7893.0306. DIVISION OF DISTRICT. (a) The district may
113	113	be divided into two or more new districts only if the district:
114	114	(1) has never issued any bonds before or after
115	115	conversion; and
116	116	(2) is not imposing ad valorem taxes.
117	117	(b) This chapter applies to any new district created by
118	118	division of the district, and a new district has all the powers and
119	119	duties of the district.
120	120	(c) A new district created by division of the district may
121	121	not, at the time the new district is created, contain land outside
122	122	the territory of the district described by Section 7893.0104.
123	123	(d) The board, on its own motion or on receipt of a petition
124	124	signed by the owner or owners of a majority of the assessed value of
125	125	the real property in the district, may adopt an order dividing the
126	126	district.
127	127	(e) The board may adopt an order dividing the district
128	128	before or after the date the board holds an election under Section
129	129	49.102, Water Code, to confirm the district's creation.
130	130	(f) An order dividing the district must:
131	131	(1) name each new district;
132	132	(2) include the metes and bounds description of the
133	133	territory of each new district;
134	134	(3) appoint temporary directors for each new district;
135	135	and
136	136	(4) provide for the division of assets and liabilities
137	137	between or among the new districts.
138	138	(g) On or before the 30th day after the date of adoption of
139	139	an order dividing the district, the district shall file the order
140	140	with the commission and record the order in the real property
141	141	records of each county in which the district is located.
142	142	(h) A new district created by division of the district shall
143	143	hold a confirmation and directors' election as required by Section
144	144	49.102, Water Code. If the creation of the new district is
145	145	confirmed, the new district shall provide the election date and
146	146	results to the commission.
147	147	(i) A new district created by division of the district must
148	148	hold an election as required by this chapter to obtain voter
149	149	approval before the district may impose a maintenance tax or issue
150	150	bonds payable wholly or partly from ad valorem taxes.
151	151	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
152	152	Sec. 7893.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
153	153	The district may issue, without an election, bonds and other
154	154	obligations secured by:
155	155	(1) revenue other than ad valorem taxes; or
156	156	(2) contract payments described by Section 7893.0403.
157	157	(b) The district must hold an election in the manner
158	158	provided by Chapters 49 and 54, Water Code, to obtain voter approval
159	159	before the district may impose an ad valorem tax or issue bonds
160	160	payable from ad valorem taxes.
161	161	(c) The district may not issue bonds payable from ad valorem
162	162	taxes to finance a road project unless the issuance is approved by a
163	163	vote of a two-thirds majority of the district voters voting at an
164	164	election held for that purpose.
165	165	Sec. 7893.0402. OPERATION AND MAINTENANCE TAX. (a) If
166	166	authorized at an election held under Section 7893.0401, the
167	167	district may impose an operation and maintenance tax on taxable
168	168	property in the district in accordance with Section 49.107, Water
169	169	Code.
170	170	(b) The board shall determine the tax rate. The rate may not
171	171	exceed the rate approved at the election.
172	172	Sec. 7893.0403. CONTRACT TAXES. (a) In accordance with
173	173	Section 49.108, Water Code, the district may impose a tax other than
174	174	an operation and maintenance tax and use the revenue derived from
175	175	the tax to make payments under a contract after the provisions of
176	176	the contract have been approved by a majority of the district voters
177	177	voting at an election held for that purpose.
178	178	(b) A contract approved by the district voters may contain a
179	179	provision stating that the contract may be modified or amended by
180	180	the board without further voter approval.
181	181	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
182	182	Sec. 7893.0501. AUTHORITY TO ISSUE BONDS AND OTHER
183	183	OBLIGATIONS. The district may issue bonds or other obligations
184	184	payable wholly or partly from ad valorem taxes, impact fees,
185	185	revenue, contract payments, grants, or other district money, or any
186	186	combination of those sources, to pay for any authorized district
187	187	purpose.
188	188	Sec. 7893.0502. TAXES FOR BONDS. At the time the district
189	189	issues bonds payable wholly or partly from ad valorem taxes, the
190	190	board shall provide for the annual imposition of a continuing
191	191	direct ad valorem tax, without limit as to rate or amount, while all
192	192	or part of the bonds are outstanding as required and in the manner
193	193	provided by Sections 54.601 and 54.602, Water Code.
194	194	Sec. 7893.0503. BONDS FOR ROAD PROJECTS. At the time of
195	195	issuance, the total principal amount of bonds or other obligations
196	196	issued or incurred to finance road projects and payable from ad
197	197	valorem taxes may not exceed one-fourth of the assessed value of the
198	198	real property in the district.
199	199	SECTION 3. Chapter 624, Acts of the 62nd Legislature,
200	200	Regular Session, 1971, is repealed.
201	201	SECTION 4. The Harris-Liberty Counties Municipal Utility
202	202	District No. 1 retains all rights, powers, privileges, authority,
203	203	duties, and functions that the May Public Utility District had
204	204	before the effective date of this Act, except as otherwise
205	205	expressly provided by Chapter 7893, Special District Local Laws
206	206	Code, as added by this Act.
207	207	SECTION 5. (a) The legislature validates and confirms all
208	208	governmental acts and proceedings of the May Public Utility
209	209	District that were taken before the effective date of this Act.
210	210	(b) This section does not apply to any matter that on the
211	211	effective date of this Act:
212	212	(1) is involved in litigation if the litigation
213	213	ultimately results in the matter being held invalid by a final court
214	214	judgment; or
215	215	(2) has been held invalid by a final court judgment.
216	216	SECTION 6. (a) The legal notice of the intention to
217	217	introduce this Act, setting forth the general substance of this
218	218	Act, has been published as provided by law, and the notice and a
219	219	copy of this Act have been furnished to all persons, agencies,
220	220	officials, or entities to which they are required to be furnished
221	221	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
222	222	Government Code.
223	223	(b) The governor, one of the required recipients, has
224	224	submitted the notice and Act to the Texas Commission on
225	225	Environmental Quality.
226	226	(c) The Texas Commission on Environmental Quality has filed
227	227	its recommendations relating to this Act with the governor, the
228	228	lieutenant governor, and the speaker of the house of
229	229	representatives within the required time.
230	230	(d) All requirements of the constitution and laws of this
231	231	state and the rules and procedures of the legislature with respect
232	232	to the notice, introduction, and passage of this Act are fulfilled
233	233	and accomplished.
234	234	(e) The general law relating to consent by political
235	235	subdivisions to the creation of districts with conservation,
236	236	reclamation, and road powers and the inclusion of land in those
237	237	districts has been complied with.
238	238	SECTION 7. (a) If this Act does not receive a two-thirds
239	239	vote of all the members elected to each house, Subchapter C, Chapter
240	240	7893, Special District Local Laws Code, as added by Section 2 of
241	241	this Act, is amended by adding Section 7893.0307 to read as follows:
242	242	Sec. 7893.0307. NO EMINENT DOMAIN POWER. The district may
243	243	not exercise the power of eminent domain.
244	244	(b) This section is not intended to be an expression of a
245	245	legislative interpretation of the requirements of Section 17(c),
246	246	Article I, Texas Constitution.
247	247	SECTION 8. This Act takes effect immediately if it receives
248	248	a vote of two-thirds of all the members elected to each house, as
249	249	provided by Section 39, Article III, Texas Constitution. If this
250	250	Act does not receive the vote necessary for immediate effect, this
251	251	Act takes effect September 1, 2019.