Texas 2019 - 86th Regular

Texas House Bill HB4723 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4723
	1	+	By: Burns (Senate Sponsor - Birdwell) H.B. No. 4723
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 7, 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 Belmont Municipal Utility District
6	12		of Johnson County; providing authority to issue bonds; providing
7	13		authority to impose assessments, fees, and taxes.
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 7896 to read as follows:
11	17		CHAPTER 7896. BELMONT MUNICIPAL UTILITY DISTRICT OF JOHNSON
12	18		COUNTY
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 7896.0101. 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 Belmont Municipal Utility
20	26		District of Johnson County.
21	27		Sec. 7896.0102. 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. 7896.0103. 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. 7896.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	35		temporary directors may not hold an election under Section
30	36		7896.0103 until each municipality in whose corporate limits or
31	37		extraterritorial jurisdiction the district is located has
32	38		consented by ordinance or resolution to the creation of the
33	39		district and to the inclusion of land in the district.
34	40		Sec. 7896.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
35	41		(a) The district is created to serve a public purpose and benefit.
36	42		(b) The district is created to accomplish the purposes of:
37	43		(1) a municipal utility district as provided by
38	44		general law and Section 59, Article XVI, Texas Constitution; and
39	45		(2) Section 52, Article III, Texas Constitution, that
40	46		relate to the construction, acquisition, improvement, operation,
41	47		or maintenance of macadamized, graveled, or paved roads, or
42	48		improvements, including storm drainage, in aid of those roads.
43	49		Sec. 7896.0106. INITIAL DISTRICT TERRITORY. (a) The
44	50		district is initially composed of the territory described by
45	51		Section 2 of the Act enacting this chapter.
46	52		(b) The boundaries and field notes contained in Section 2 of
47	53		the Act enacting this chapter form a closure. A mistake made in the
48	54		field notes or in copying the field notes in the legislative process
49	55		does not affect the district's:
50	56		(1) organization, existence, or validity;
51	57		(2) right to issue any type of bond for the purposes
52	58		for which the district is created or to pay the principal of and
53	59		interest on a bond;
54	60		(3) right to impose a tax; or
55	61		(4) legality or operation.
56	62		SUBCHAPTER B. BOARD OF DIRECTORS
57	63		Sec. 7896.0201. GOVERNING BODY; TERMS. (a) The district is
58	64		governed by a board of five elected directors.
59	65		(b) Except as provided by Section 7896.0202, directors
60	66		serve staggered four-year terms.
61	67		Sec. 7896.0202. TEMPORARY DIRECTORS. (a) On or after
62	68		September 1, 2019, the owner or owners of a majority of the assessed
63	69		value of the real property in the district may submit a petition to
64	70		the commission requesting that the commission appoint as temporary
65	71		directors the five persons named in the petition. The commission
66	72		shall appoint as temporary directors the five persons named in the
67	73		petition.
68	74		(b) Temporary directors serve until the earlier of:
69	75		(1) the date permanent directors are elected under
70	76		Section 7896.0103; or
71	77		(2) September 1, 2023.
72	78		(c) If permanent directors have not been elected under
73	79		Section 7896.0103 and the terms of the temporary directors have
74	80		expired, successor temporary directors shall be appointed or
75	81		reappointed as provided by Subsection (d) to serve terms that
76	82		expire on the earlier of:
77	83		(1) the date permanent directors are elected under
78	84		Section 7896.0103; or
79	85		(2) the fourth anniversary of the date of the
80	86		appointment or reappointment.
81	87		(d) If Subsection (c) applies, the owner or owners of a
82	88		majority of the assessed value of the real property in the district
83	89		may submit a petition to the commission requesting that the
84	90		commission appoint as successor temporary directors the five
85	91		persons named in the petition. The commission shall appoint as
86	92		successor temporary directors the five persons named in the
87	93		petition.
88	94		SUBCHAPTER C. POWERS AND DUTIES
89	95		Sec. 7896.0301. GENERAL POWERS AND DUTIES. The district
90	96		has the powers and duties necessary to accomplish the purposes for
91	97		which the district is created.
92	98		Sec. 7896.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
93	99		DUTIES. The district has the powers and duties provided by the
94	100		general law of this state, including Chapters 49 and 54, Water Code,
95	101		applicable to municipal utility districts created under Section 59,
96	102		Article XVI, Texas Constitution.
97	103		Sec. 7896.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
98	104		52, Article III, Texas Constitution, the district may design,
99	105		acquire, construct, finance, issue bonds for, improve, operate,
100	106		maintain, and convey to this state, a county, or a municipality for
101	107		operation and maintenance macadamized, graveled, or paved roads, or
102	108		improvements, including storm drainage, in aid of those roads.
103	109		Sec. 7896.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
104	110		road project must meet all applicable construction standards,
105	111		zoning and subdivision requirements, and regulations of each
106	112		municipality in whose corporate limits or extraterritorial
107	113		jurisdiction the road project is located.
108	114		(b) If a road project is not located in the corporate limits
109	115		or extraterritorial jurisdiction of a municipality, the road
110	116		project must meet all applicable construction standards,
111	117		subdivision requirements, and regulations of each county in which
112	118		the road project is located.
113	119		(c) If the state will maintain and operate the road, the
114	120		Texas Transportation Commission must approve the plans and
115	121		specifications of the road project.
116	122		Sec. 7896.0305. COMPLIANCE WITH MUNICIPAL CONSENT
117	123		ORDINANCE OR RESOLUTION. The district shall comply with all
118	124		applicable requirements of any ordinance or resolution that is
119	125		adopted under Section 54.016 or 54.0165, Water Code, and that
120	126		consents to the creation of the district or to the inclusion of land
121	127		in the district.
122	128		Sec. 7896.0306. DIVISION OF DISTRICT. (a) The district may
123	129		be divided into two or more new districts only if the district:
124	130		(1) has no outstanding bonded debt; and
125	131		(2) is not imposing ad valorem taxes.
126	132		(b) This chapter applies to any new district created by the
127	133		division of the district, and a new district has all the powers and
128	134		duties of the district.
129	135		(c) Any new district created by the division of the district
130	136		may not, at the time the new district is created, contain any land
131	137		outside the area described by Section 2 of the Act enacting this
132	138		chapter.
133	139		(d) The board, on its own motion or on receipt of a petition
134	140		signed by the owner or owners of a majority of the assessed value of
135	141		the real property in the district, may adopt an order dividing the
136	142		district.
137	143		(e) The board may adopt an order dividing the district
138	144		before or after the date the board holds an election under Section
139	145		7896.0103 to confirm the district's creation.
140	146		(f) An order dividing the district must:
141	147		(1) name each new district;
142	148		(2) include the metes and bounds description of the
143	149		territory of each new district;
144	150		(3) appoint temporary directors for each new district;
145	151		and
146	152		(4) provide for the division of assets and liabilities
147	153		between or among the new districts.
148	154		(g) On or before the 30th day after the date of adoption of
149	155		an order dividing the district, the district shall file the order
150	156		with the commission and record the order in the real property
151	157		records of each county in which the district is located.
152	158		(h) Any new district created by the division of the district
153	159		shall hold a confirmation and directors' election as required by
154	160		Section 7896.0103. If the voters of a new district do not confirm
155	161		the creation of the new district, the assets, obligations,
156	162		territory, and governance of the new district revert to the
157	163		original district.
158	164		(i) Municipal consent to the creation of the district and to
159	165		the inclusion of land in the district granted under Section
160	166		7896.0104 acts as municipal consent to the creation of any new
161	167		district created by the division of the district and to the
162	168		inclusion of land in the new district.
163	169		(j) Any new district created by the division of the district
164	170		must hold an election as required by this chapter to obtain voter
165	171		approval before the district may impose a maintenance tax or issue
166	172		bonds payable wholly or partly from ad valorem taxes.
167	173		(k) If the creation of the new district is confirmed, the
168	174		new district shall provide the election date and results to the
169	175		commission.
170	176		Sec. 7896.0307. NO EMINENT DOMAIN POWER. The district may
171	177		not exercise the power of eminent domain.
172	178		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
173	179		Sec. 7896.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
174	180		The district may issue, without an election, bonds and other
175	181		obligations secured by:
176	182		(1) revenue other than ad valorem taxes; or
177	183		(2) contract payments described by Section 7896.0403.
178	184		(b) The district must hold an election in the manner
179	185		provided by Chapters 49 and 54, Water Code, to obtain voter approval
180	186		before the district may impose an ad valorem tax or issue bonds
181	187		payable from ad valorem taxes.
182	188		(c) The district may not issue bonds payable from ad valorem
183	189		taxes to finance a road project unless the issuance is approved by a
184	190		vote of a two-thirds majority of the district voters voting at an
185	191		election held for that purpose.
186	192		Sec. 7896.0402. OPERATION AND MAINTENANCE TAX. (a) If
187	193		authorized at an election held under Section 7896.0401, the
188	194		district may impose an operation and maintenance tax on taxable
189	195		property in the district in accordance with Section 49.107, Water
190	196		Code.
191	197		(b) The board shall determine the tax rate. The rate may not
192	198		exceed the rate approved at the election.
193	199		Sec. 7896.0403. CONTRACT TAXES. (a) In accordance with
194	200		Section 49.108, Water Code, the district may impose a tax other than
195	201		an operation and maintenance tax and use the revenue derived from
196	202		the tax to make payments under a contract after the provisions of
197	203		the contract have been approved by a majority of the district voters
198	204		voting at an election held for that purpose.
199	205		(b) A contract approved by the district voters may contain a
200	206		provision stating that the contract may be modified or amended by
201	207		the board without further voter approval.
202	208		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
203	209		Sec. 7896.0501. AUTHORITY TO ISSUE BONDS AND OTHER
204	210		OBLIGATIONS. The district may issue bonds or other obligations
205	211		payable wholly or partly from ad valorem taxes, impact fees,
206	212		revenue, contract payments, grants, or other district money, or any
207	213		combination of those sources, to pay for any authorized district
208	214		purpose.
209	215		Sec. 7896.0502. TAXES FOR BONDS. At the time the district
210	216		issues bonds payable wholly or partly from ad valorem taxes, the
211	217		board shall provide for the annual imposition of a continuing
212	218		direct ad valorem tax, without limit as to rate or amount, while all
213	219		or part of the bonds are outstanding as required and in the manner
214	220		provided by Sections 54.601 and 54.602, Water Code.
215	221		Sec. 7896.0503. BONDS FOR ROAD PROJECTS. At the time of
216	222		issuance, the total principal amount of bonds or other obligations
217	223		issued or incurred to finance road projects and payable from ad
218	224		valorem taxes may not exceed one-fourth of the assessed value of the
219	225		real property in the district.
220	226		SECTION 2. The Belmont Municipal Utility District of
221	227		Johnson County initially includes all the territory contained in
222	228		the following area:
223	229		BEING 502.94 acres out of the P.S. DOSS SURVEY, ABSTRACT
224	230		NUMBER 197 and the JOHNSON COUNTY SCHOOL LANDS SURVEY, ABSTRACT
225	231		NUMBER 443, Johnson County, Texas and being those certain tracts of
226	232		land conveyed to MAAK Enterprises, LP (318.94 acres), according to
227	233		the deed recorded in Volume 2289, Page 289, Deed Records of Johnson
228	234		County, Texas and to Roy King Carrell according to the deed recorded
229	235		in Volume 2289, Page 293, Deed Records of Johnson County, Texas and
230	236		being more particularly described as follows:
231	237		BEGINNING at a the northeast corner of said Carrell tract,
232	238		said point being in the apparent centerline of County Road 1006;
233	239		THENCE, South, along the apparent centerline of said County
234	240		Road 1006, at 1883.4 feet passing the southeast corner of said
235	241		Carell tract and the northeast corner of said MAAK tract and
236	242		continuing in all a distance of 5660.9 feet to a point for corner,
237	243		being the southeast corner of said MAAK tract;
238	244		THENCE, West, along the existing north right-of-way line of
239	245		FM 917, 3677.8 feet to a point for corner, being the southwest
240	246		corner of said MAAK tract;
241	247		THENCE, North, along the west line of said MAAK tract, 3777.5
242	248		feet to a point for corner, said point being in the south line of
243	249		said Carrell tract and also being the northwest corner of said MAAK
244	250		tract;
245	251		THENCE, West, along the south line of said Carrell tract,
246	252		577.8 feet to a point for corner, being the southwest corner of said
247	253		Carrell tract;
248	254		THENCE, North, along the west line of said Carrell tract,
249	255		1883.4 feet to a point for corner, being the northwest corner of
250	256		said Carrell tract;
251	257		THENCE, East, along the north line of said Carrell tract,
252	258		4255.6 feet to the POINT OF BEGINNING.
253	259		The tract of land herein described contains 502.94 acres of
254	260		land.
255	261		SECTION 3. (a) The legal notice of the intention to
256	262		introduce this Act, setting forth the general substance of this
257	263		Act, has been published as provided by law, and the notice and a
258	264		copy of this Act have been furnished to all persons, agencies,
259	265		officials, or entities to which they are required to be furnished
260	266		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
261	267		Government Code.
262	268		(b) The governor, one of the required recipients, has
263	269		submitted the notice and Act to the Texas Commission on
264	270		Environmental Quality.
265	271		(c) The Texas Commission on Environmental Quality has filed
266	272		its recommendations relating to this Act with the governor, the
267	273		lieutenant governor, and the speaker of the house of
268	274		representatives within the required time.
269	275		(d) All requirements of the constitution and laws of this
270	276		state and the rules and procedures of the legislature with respect
271	277		to the notice, introduction, and passage of this Act are fulfilled
272	278		and accomplished.
273	279		SECTION 4. This Act takes effect September 1, 2019.
274		-	______________________________ ______________________________
275		-	President of the Senate Speaker of the House
276		-	I certify that H.B. No. 4723 was passed by the House on May 3,
277		-	2019, by the following vote: Yeas 123, Nays 17, 2 present, not
278		-	voting.
279		-	______________________________
280		-	Chief Clerk of the House
281		-	I certify that H.B. No. 4723 was passed by the Senate on May
282		-	19, 2019, by the following vote: Yeas 30, Nays 1.
283		-	______________________________
284		-	Secretary of the Senate
285		-	APPROVED: _____________________
286		-	Date
287		-	_____________________
288		-	Governor
	280	+	* * * * *