Texas 2019 - 86th Regular

Texas House Bill HB4741 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4741
	1	+	By: Smith (Senate Sponsor - Fallon) H.B. No. 4741
	2	+	(In the Senate - Received from the House May 13, 2019;
	3	+	May 14, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 20, 2019, reported favorably by
	5	+	the following vote: Yeas 7, Nays 0; May 20, 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 Grayson County Municipal Utility
6	12		District No. 5; granting a limited power of eminent domain;
7	13		providing 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 7892 to read as follows:
12	18		CHAPTER 7892. GRAYSON COUNTY MUNICIPAL UTILITY DISTRICT NO. 5
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 7892.0101. 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 Grayson County Municipal
20	26		Utility District No. 5.
21	27		Sec. 7892.0102. 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. 7892.0103. 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. 7892.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	35		temporary directors may not hold an election under Section
30	36		7892.0103 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. 7892.0105. 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. 7892.0106. 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. 7892.0201. 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 7892.0202, directors
60	66		serve staggered four-year terms.
61	67		Sec. 7892.0202. 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 7892.0103; or
71	77		(2) September 1, 2023.
72	78		(c) If permanent directors have not been elected under
73	79		Section 7892.0103 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 7892.0103; 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. 7892.0301. 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. 7892.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
93	99		DUTIES. (a) 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		(b) Notwithstanding Subsection (a), the district may not
98	104		act as a retail provider of water or wastewater service.
99	105		(c) The district shall make the district's water and
100	106		wastewater facilities available to an entity holding the applicable
101	107		certificate of public convenience and necessity.
102	108		Sec. 7892.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
103	109		52, Article III, Texas Constitution, the district may design,
104	110		acquire, construct, finance, issue bonds for, improve, operate,
105	111		maintain, and convey to this state, a county, or a municipality for
106	112		operation and maintenance macadamized, graveled, or paved roads, or
107	113		improvements, including storm drainage, in aid of those roads.
108	114		Sec. 7892.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
109	115		road project must meet all applicable construction standards,
110	116		zoning and subdivision requirements, and regulations of each
111	117		municipality in whose corporate limits or extraterritorial
112	118		jurisdiction the road project is located.
113	119		(b) If a road project is not located in the corporate limits
114	120		or extraterritorial jurisdiction of a municipality, the road
115	121		project must meet all applicable construction standards,
116	122		subdivision requirements, and regulations of each county in which
117	123		the road project is located.
118	124		(c) If the state will maintain and operate the road, the
119	125		Texas Transportation Commission must approve the plans and
120	126		specifications of the road project.
121	127		Sec. 7892.0305. MAINTENANCE OF ROADS IN TERRITORY OUTSIDE
122	128		CORPORATE LIMITS OF MUNICIPALITY. If district territory, or a
123	129		portion of district territory, is located outside the corporate
124	130		limits of a municipality, the district shall maintain any road the
125	131		district constructs located in that territory.
126	132		Sec. 7892.0306. COMPLIANCE WITH MUNICIPAL CONSENT
127	133		ORDINANCE OR RESOLUTION. The district shall comply with all
128	134		applicable requirements of any ordinance or resolution that is
129	135		adopted under Section 54.016 or 54.0165, Water Code, and that
130	136		consents to the creation of the district or to the inclusion of land
131	137		in the district.
132	138		Sec. 7892.0307. DIVISION OF DISTRICT. (a) The district may
133	139		be divided into two or more new districts only if the district:
134	140		(1) has no outstanding bonded debt; and
135	141		(2) is not imposing ad valorem taxes.
136	142		(b) This chapter applies to any new district created by the
137	143		division of the district, and a new district has all the powers and
138	144		duties of the district.
139	145		(c) Any new district created by the division of the district
140	146		may not, at the time the new district is created, contain any land
141	147		outside the area described by Section 2 of the Act enacting this
142	148		chapter.
143	149		(d) The board, on its own motion or on receipt of a petition
144	150		signed by the owner or owners of a majority of the assessed value of
145	151		the real property in the district, may adopt an order dividing the
146	152		district.
147	153		(e) The board may adopt an order dividing the district
148	154		before or after the date the board holds an election under Section
149	155		7892.0103 to confirm the district's creation.
150	156		(f) An order dividing the district shall:
151	157		(1) name each new district;
152	158		(2) include the metes and bounds description of the
153	159		territory of each new district;
154	160		(3) appoint temporary directors for each new district;
155	161		and
156	162		(4) provide for the division of assets and liabilities
157	163		between or among the new districts.
158	164		(g) On or before the 30th day after the date of adoption of
159	165		an order dividing the district, the district shall file the order
160	166		with the commission and record the order in the real property
161	167		records of each county in which the district is located.
162	168		(h) Any new district created by the division of the district
163	169		shall hold a confirmation and directors' election as required by
164	170		Section 7892.0103. If the voters of a new district do not confirm
165	171		the creation of the new district, the assets, obligations,
166	172		territory, and governance of the new district revert to the
167	173		original district.
168	174		(i) Municipal consent to the creation of the district and to
169	175		the inclusion of land in the district granted under Section
170	176		7892.0104 acts as municipal consent to the creation of any new
171	177		district created by the division of the district and to the
172	178		inclusion of land in the new district.
173	179		(j) Any new district created by the division of the district
174	180		must hold an election as required by this chapter to obtain voter
175	181		approval before the district may impose a maintenance tax or issue
176	182		bonds payable wholly or partly from ad valorem taxes.
177	183		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
178	184		Sec. 7892.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
179	185		The district may issue, without an election, bonds and other
180	186		obligations secured by:
181	187		(1) revenue other than ad valorem taxes; or
182	188		(2) contract payments described by Section 7892.0403.
183	189		(b) The district must hold an election in the manner
184	190		provided by Chapters 49 and 54, Water Code, to obtain voter approval
185	191		before the district may impose an ad valorem tax or issue bonds
186	192		payable from ad valorem taxes.
187	193		(c) The district may not issue bonds payable from ad valorem
188	194		taxes to finance a road project unless the issuance is approved by a
189	195		vote of a two-thirds majority of the district voters voting at an
190	196		election held for that purpose.
191	197		Sec. 7892.0402. OPERATION AND MAINTENANCE TAX. (a) If
192	198		authorized at an election held under Section 7892.0401, the
193	199		district may impose an operation and maintenance tax on taxable
194	200		property in the district in accordance with Section 49.107, Water
195	201		Code.
196	202		(b) The board shall determine the tax rate. The rate may not
197	203		exceed the rate approved at the election.
198	204		Sec. 7892.0403. CONTRACT TAXES. (a) In accordance with
199	205		Section 49.108, Water Code, the district may impose a tax other than
200	206		an operation and maintenance tax and use the revenue derived from
201	207		the tax to make payments under a contract after the provisions of
202	208		the contract have been approved by a majority of the district voters
203	209		voting at an election held for that purpose.
204	210		(b) A contract approved by the district voters may contain a
205	211		provision stating that the contract may be modified or amended by
206	212		the board without further voter approval.
207	213		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
208	214		Sec. 7892.0501. AUTHORITY TO ISSUE BONDS AND OTHER
209	215		OBLIGATIONS. The district may issue bonds or other obligations
210	216		payable wholly or partly from ad valorem taxes, impact fees,
211	217		revenue, contract payments, grants, or other district money, or any
212	218		combination of those sources, to pay for any authorized district
213	219		purpose.
214	220		Sec. 7892.0502. TAXES FOR BONDS. At the time the district
215	221		issues bonds payable wholly or partly from ad valorem taxes, the
216	222		board shall provide for the annual imposition of a continuing
217	223		direct ad valorem tax, without limit as to rate or amount, while all
218	224		or part of the bonds are outstanding as required and in the manner
219	225		provided by Sections 54.601 and 54.602, Water Code.
220	226		Sec. 7892.0503. BONDS FOR ROAD PROJECTS. At the time of
221	227		issuance, the total principal amount of bonds or other obligations
222	228		issued or incurred to finance road projects and payable from ad
223	229		valorem taxes may not exceed one-fourth of the assessed value of the
224	230		real property in the district.
225	231		SECTION 2. The Grayson County Municipal Utility District
226	232		No. 5 initially includes all the territory contained in the
227	233		following area:
228	234		BEING a tract of land situated in the Sarah Shoto Survey,
229	235		Abstract Number 1079, Grayson County, Texas and being all that
230	236		called 243.554 acre tract of land conveyed to Duck Bill Partners,
231	237		LTD, according to the document filed of record in Document Number
232	238		2002-19154, Deed Records Grayson County, Texas, and being more
233	239		particularly described as follows:
234	240		BEGINNING at a point on the north line of F.M. Highway 121 for
235	241		the southeast corner of said 243.554 acre tract and this tract;
236	242		THENCE North 88°44'31" West, with said north line, a distance
237	243		of 2298.48 feet to a point for corner of said 243.554 acre tract and
238	244		this tract;
239	245		THENCE North 62°42'31" West, a distance of 113.80 feet to a
240	246		point for corner of said 243.554 acre tract and this tract;
241	247		THENCE North 88°44'31" West, a distance of 25.00 feet to a
242	248		point for the southwest corner of said 243.554 acre tract and this
243	249		tract;
244	250		THENCE North 1°18'56" West, leaving the above mentioned north
245	251		line, a distance of 4329.49 feet to a point for the northwest corner
246	252		of said 243.554 acre tract and this tract;
247	253		THENCE South 88°54'39" East, a distance of 2481.57 feet to a
248	254		point for the northeast corner of said 243.554 acre tract and this
249	255		tract;
250	256		THENCE South 2°25'44" West, a distance of 1095.57 feet to a
251	257		point for corner of said 243.554 acre tract and this tract;
252	258		THENCE South 1°30'13" East, a distance of 1346.96 feet to a
253	259		point for corner of said 243.554 acre tract and this tract;
254	260		THENCE South 1°34'28" East, a distance of 1944.02 feet to the
255	261		POINT OF BEGINNING and containing 243.554 acres or 10,609,229
256	262		square feet of land, more or less.
257	263		SECTION 3. (a) The legal notice of the intention to
258	264		introduce this Act, setting forth the general substance of this
259	265		Act, has been published as provided by law, and the notice and a
260	266		copy of this Act have been furnished to all persons, agencies,
261	267		officials, or entities to which they are required to be furnished
262	268		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
263	269		Government Code.
264	270		(b) The governor, one of the required recipients, has
265	271		submitted the notice and Act to the Texas Commission on
266	272		Environmental Quality.
267	273		(c) The Texas Commission on Environmental Quality has filed
268	274		its recommendations relating to this Act with the governor, the
269	275		lieutenant governor, and the speaker of the house of
270	276		representatives within the required time.
271	277		(d) All requirements of the constitution and laws of this
272	278		state and the rules and procedures of the legislature with respect
273	279		to the notice, introduction, and passage of this Act are fulfilled
274	280		and accomplished.
275	281		SECTION 4. (a) If this Act does not receive a two-thirds
276	282		vote of all the members elected to each house, Subchapter C, Chapter
277	283		7892, Special District Local Laws Code, as added by Section 1 of
278	284		this Act, is amended by adding Section 7892.0308 to read as follows:
279	285		Sec. 7892.0308. NO EMINENT DOMAIN POWER. The district may
280	286		not exercise the power of eminent domain.
281	287		(b) This section is not intended to be an expression of a
282	288		legislative interpretation of the requirements of Section 17(c),
283	289		Article I, Texas Constitution.
284	290		SECTION 5. This Act takes effect September 1, 2019.
285		-	______________________________ ______________________________
286		-	President of the Senate Speaker of the House
287		-	I certify that H.B. No. 4741 was passed by the House on May
288		-	10, 2019, by the following vote: Yeas 121, Nays 20, 2 present, not
289		-	voting.
290		-	______________________________
291		-	Chief Clerk of the House
292		-	I certify that H.B. No. 4741 was passed by the Senate on May
293		-	22, 2019, by the following vote: Yeas 30, Nays 1.
294		-	______________________________
295		-	Secretary of the Senate
296		-	APPROVED: _____________________
297		-	Date
298		-	_____________________
299		-	Governor
	291	+	* * * * *