Texas 2019 - 86th Regular

Texas House Bill HB4749 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4749
	1	+	By: Schaefer (Senate Sponsor - Hughes) H.B. No. 4749
	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 adversely,
	5	+	with favorable Committee Substitute by the following vote: Yeas 6,
	6	+	Nays 0; May 20, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 4749 By: Nichols
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the creation of the Rose City Municipal Utility
6	14		District; granting a limited power of eminent domain; providing
7	15		authority to issue bonds; providing authority to impose assessments
8	16		and fees.
9	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	18		SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	19		Code, is amended by adding Chapter 7958 to read as follows:
12	20		CHAPTER 7958. ROSE CITY MUNICIPAL UTILITY DISTRICT
13	21		SUBCHAPTER A. GENERAL PROVISIONS
14	22		Sec. 7958.0101. DEFINITIONS. In this chapter:
15	23		(1) "Board" means the district's board of directors.
16	24		(2) "City" means the City of Tyler.
17	25		(3) "Commission" means the Texas Commission on
18	26		Environmental Quality.
19	27		(4) "Director" means a board member.
20	28		(5) "District" means the Rose City Municipal Utility
21	29		District.
22	30		(6) "Utility commission" means the Public Utility
23	31		Commission of Texas.
24	32		Sec. 7958.0102. NATURE OF DISTRICT. The district is a
25	33		municipal utility district created under Section 59, Article XVI,
26	34		Texas Constitution.
27	35		Sec. 7958.0103. CONFIRMATION ELECTION REQUIRED. The
28	36		initial directors appointed under Section 7958.0201 shall hold an
29	37		election to confirm the creation of the district as provided by
30	38		Section 49.102, Water Code.
31	39		Sec. 7958.0104. CONSENT OF MUNICIPALITY REQUIRED. The
32	40		temporary directors may not hold an election under Section
33	41		7958.0103 until each municipality in whose corporate limits or
34	42		extraterritorial jurisdiction the district is located has
35	43		consented by ordinance or resolution to the creation of the
36	44		district and to the inclusion of land in the district.
37	45		Sec. 7958.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
38	46		(a) The district is created to serve a public purpose and benefit.
39	47		(b) The district is created to accomplish the purposes of a
40	48		municipal utility district as provided by general law and Section
41	49		59, Article XVI, Texas Constitution.
42	50		Sec. 7958.0106. INITIAL DISTRICT TERRITORY. (a) The
43	51		district is initially composed of the territory described by
44	52		Section 2 of the Act enacting this chapter.
45	53		(b) The boundaries and field notes contained in Section 2 of
46	54		the Act enacting this chapter form a closure. A mistake made in the
47	55		field notes or in copying the field notes in the legislative process
48	56		does not affect the district's:
49	57		(1) organization, existence, or validity;
50	58		(2) right to issue any type of bond for the purposes
51	59		for which the district is created or to pay the principal of and
52	60		interest on a bond; or
53	61		(3) legality or operation.
54	62		SUBCHAPTER B. BOARD OF DIRECTORS
55	63		Sec. 7958.0201. GOVERNING BODY; TERMS. (a) The district is
56	64		governed by a board of five directors appointed as follows:
57	65		(1) three directors appointed by the city; and
58	66		(2) two directors appointed by the Smith County
59	67		Commissioners Court.
60	68		(b) Directors serve staggered four-year terms.
61	69		(c) The appointing entities shall appoint the initial
62	70		directors not later than September 1, 2020. The initial directors
63	71		appointed under Subsection (a)(1) serve a four-year term, and the
64	72		directors appointed under Subsection (a)(2) serve a two-year term.
65	73		This subsection expires September 1, 2023.
66	74		Sec. 7958.0202. QUALIFICATIONS OF DIRECTORS. (a)
67	75		Notwithstanding any other law:
68	76		(1) an officer or employee of the city may serve as a
69	77		director of the district; and
70	78		(2) a member of the governing body of the city may
71	79		serve as a director of the district.
72	80		(b) A person who qualifies to serve as a director is
73	81		qualified to participate in all votes pertaining to the business of
74	82		the district, subject to Section 49.058, Water Code.
75	83		(c) Section 49.052, Water Code, does not apply to the
76	84		district.
77	85		Sec. 7958.0203. COMPENSATION; REIMBURSEMENT. A director
78	86		serves without compensation but may receive reimbursement for
79	87		actual expenses reasonably and necessarily incurred while engaging
80	88		in activities on behalf of the district.
81	89		SUBCHAPTER C. POWERS AND DUTIES
82	90		Sec. 7958.0301. GENERAL POWERS AND DUTIES. The district
83	91		has the powers and duties necessary to accomplish the purposes for
84	92		which the district is created.
85	93		Sec. 7958.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
86	94		DUTIES. (a) Subject to Subsection (b), the district has the powers
87	95		and duties provided by the general law of this state, including
88	96		Chapters 49 and 54, Water Code, applicable to municipal utility
89	97		districts created under Section 59, Article XVI, Texas
90	98		Constitution.
91	99		(b) The district may provide only sewer and wastewater
92	100		services, including the acquisition, construction, contracting,
93	101		financing, maintenance, operation, and planning of sewer and
94	102		wastewater facilities or systems.
95	103		Sec. 7958.0303. COMPLIANCE WITH MUNICIPAL CONSENT
96	104		ORDINANCE OR RESOLUTION. The district shall comply with all
97	105		applicable requirements of any ordinance or resolution that is
98	106		adopted under Section 54.016 or 54.0165, Water Code, and that
99	107		consents to the creation of the district or to the inclusion of land
100	108		in the district.
101	109		Sec. 7958.0304. LIMITED POWER OF EMINENT DOMAIN. The
102	110		district may exercise the power of eminent domain only for the
103	111		limited purpose of acquiring or constructing sewer and wastewater
104	112		facilities.
105	113		Sec. 7958.0305. CONTRACTING. The district may contract
106	114		with a political subdivision or private operator to operate and
107	115		maintain the district's sewer and wastewater facilities.
108	116		Sec. 7958.0306. CERTIFICATE OF PUBLIC CONVENIENCE AND
109	117		NECESSITY. (a) Notwithstanding Chapter 13, Water Code, the
110	118		district may provide sewer and wastewater service without a
111	119		certificate of convenience and necessity.
112	120		(b) Not later than the 30th day before the date the district
113	121		intends to provide sewer and wastewater service, the district must
114	122		notify the utility commission and each retail public utility that
115	123		provides sewer and wastewater services in the district.
116	124		(c) If the district does not acquire a retail public utility
117	125		that holds a certificate of public convenience and necessity for
118	126		providing sewer and wastewater service in the district territory,
119	127		the district shall:
120	128		(1) not later than the 30th day after the date the
121	129		district begins providing sewer and wastewater service, petition
122	130		the utility commission to decertify the territory inside the
123	131		district of the existing certificate holder; and
124	132		(2) compensate the existing certificate holder in an
125	133		amount determined by the utility commission.
126	134		Sec. 7958.0307. PROFESSIONAL SERVICES. The district may
127	135		contract with a political subdivision to provide professional
128	136		services for the district, including legal services related to the
129	137		exercise of eminent domain.
130	138		Sec. 7958.0308. SUPERMAJORITY VOTE REQUIRED FOR CERTAIN
131	139		ACTIONS. At least four board members must vote in favor of a
132	140		resolution before the board may:
133	141		(1) increase rates or assessments by more than five
134	142		percent;
135	143		(2) incur debt or increase the amount of debt that the
136	144		district has outstanding; or
137	145		(3) order a dissolution election under Section
138	146		7958.0601.
139	147		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
140	148		Sec. 7958.0401. ELECTIONS REGARDING BONDS. The district
141	149		may issue, without an election, bonds and other obligations secured
142	150		by revenue other than ad valorem taxes.
143	151		Sec. 7958.0402. PROHIBITION ON IMPOSITION OF TAXES. (a) The
144	152		district may not impose an ad valorem tax for any purpose.
145	153		(b) Section 49.107, Water Code, does not apply to the
146	154		district.
147	155		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
148	156		Sec. 7958.0501. AUTHORITY TO ISSUE BONDS AND OTHER
149	157		OBLIGATIONS. The district may issue bonds or other obligations
150	158		payable wholly or partly from impact fees, revenue, contract
151	159		payments, grants, or other district money, or any combination of
152	160		those sources, to pay for any authorized district purpose.
153	161		SUBCHAPTER F. DISSOLUTION BY ELECTION
154	162		Sec. 7958.0601. DISSOLUTION ELECTION CALLED BY BOARD. The
155	163		board may order an election on the question of dissolving the
156	164		district and transferring the district's assets and obligations to
157	165		another political subdivision of the state, if the board concludes
158	166		after a public hearing held on the issue that it is in the best
159	167		interest of the district's residents and of the persons served by
160	168		the district for the district to dissolve.
161	169		Sec. 7958.0602. DISSOLUTION ELECTION CALLED BY PETITION.
162	170		The board shall order an election on the question of dissolving the
163	171		district and transferring the district's assets and obligations to
164	172		another political subdivision of the state if the board receives a
165	173		petition requesting an election on that question. The petition
166	174		must be signed by at least 15 percent of the district's registered
167	175		voters.
168	176		Sec. 7958.0603. ELECTION ORDER. An order calling an
169	177		election held under this subchapter must state:
170	178		(1) the nature of the election, including the
171	179		proposition that is to appear on the ballot;
172	180		(2) the date of the election;
173	181		(3) the hours during which the polls will be open; and
174	182		(4) the location of the polling places.
175	183		Sec. 7958.0604. NOTICE OF DISSOLUTION ELECTION. (a) The
176	184		board shall give notice of an election ordered under this
177	185		subchapter by publishing a substantial copy of the election order
178	186		in a newspaper with general circulation in the district once a week
179	187		for two consecutive weeks.
180	188		(b) The first publication must appear not later than the
181	189		30th day before the date set for the election.
182	190		Sec. 7958.0605. APPLICABILITY OF UNIFORM ELECTION DATES.
183	191		Section 41.001, Election Code, does not apply to an election held
184	192		under this subchapter.
185	193		Sec. 7958.0606. ELECTION RESULTS. (a) If a majority of the
186	194		votes in an election held under this subchapter favor dissolution,
187	195		the board shall order that the district be dissolved.
188	196		(b) If a majority of the votes in an election held under this
189	197		subchapter do not favor dissolution, the board shall continue to
190	198		administer the district, and another election on the question of
191	199		dissolution may not be held before the first anniversary of the date
192	200		of the most recent election held on the question of dissolving the
193	201		district.
194	202		Sec. 7958.0607. TRANSFER OF ASSETS, OBLIGATIONS, AND
195	203		PROVISION OF SERVICES. (a) As soon as practicable following the
196	204		issuance of an order under Section 7958.0606(a), the board shall:
197	205		(1) begin the process of transferring the district's
198	206		assets and obligations to one or more political subdivisions in a
199	207		fair and equitable manner; and
200	208		(2) administer the property, assets, and debts of the
201	209		district until all money has been disposed of and all district debts
202	210		have been paid or settled.
203	211		(b) If the district provides services, the board or a
204	212		receiver appointed under Section 7958.0608 shall make arrangements
205	213		for the uninterrupted provision of services.
206	214		Sec. 7958.0608. RECEIVER. If the executive director of the
207	215		commission determines that the board has failed to make substantial
208	216		progress in transferring the district's assets and obligations to
209	217		one or more political subdivisions in a fair and equitable manner,
210	218		the executive director shall appoint a receiver for the district.
211	219		Sec. 7958.0609. REPORT; DISSOLUTION ORDER. (a) After the
212	220		district has transferred all of the district's assets and
213	221		obligations and has arranged for the continued provision of
214	222		services provided by the district, if applicable, the board shall
215	223		file a written report with the commission summarizing the board's
216	224		actions in dissolving the district.
217	225		(b) Not later than the 10th day after the date the
218	226		commission receives the report and determines that the requirements
219	227		of this subchapter have been fulfilled, the commission shall enter
220	228		an order dissolving the district.
221	229		SUBCHAPTER G. ANNEXATION OF LAND
222	230		Sec. 7958.0701. GENERAL ANNEXATION PROVISIONS. (a) Except
223	231		as provided by this section, Subchapter J, Chapter 49, Water Code,
224	232		applies to the district.
225	233		(b) In addition to the requirements of Section 49.302(b),
226	234		Water Code, the petition must also be signed by a majority of
227	235		registered voters in the defined area to be annexed.
228	236		Sec. 7958.0702. RETALIATION FOR ANNEXATION DISAPPROVAL
229	237		PROHIBITED. (a) The disapproval of the proposed annexation of an
230	238		area by the district does not affect any existing legal obligation
231	239		of the district to continue to provide services in the area,
232	240		including wastewater services.
233	241		(b) The district may not initiate a rate proceeding solely
234	242		because of the disapproval of a proposed annexation of an area.
235	243		SECTION 2. The Rose City Municipal Utility District
236	244		initially includes all the territory contained in the following
237	245		area:
238	246		BEING a 21,118 acre tract of land situated in Smith County, Texas,
239	247		said 21,118 acre tract being more completely described by metes and
240	248		bounds as follows:
241	249		BEGINNING at the intersection of the centerline of State Highway
242	250		No. 155 with State Highway 57 (West Grande Boulevard);
243	251		THENCE Easterly with the centerline of West Grande Boulevard to its
244	252		intersection with F.M. 2493 (Old Jacksonville Highway);
245	253		THENCE Southwesterly with the centerline of F.M. 2493 (Old
246	254		Jacksonville Highway) to its intersection with Three Lakes Parkway;
247	255		THENCE Southeasterly with the centerline of Three Lakes Parkway to
248	256		its intersection with Dueling Oaks;
249	257		THENCE Easterly with the centerline of Dueling Oaks to its
250	258		intersection with Hollytree Drive;
251	259		THENCE Southwesterly with the centerline of Hollytree Drive to its
252	260		intersection with Maple Lane;
253	261		THENCE Southerly with the centerline of Maple Lane to its
254	262		intersection with West Cumberland Road;
255	263		THENCE Easterly with the centerline of West Cumberland Road to its
256	264		intersection with U.S. Highway 69 (South Broadway Ave.);
257	265		THENCE Southerly with the centerline of U.S. Highway 69 (South
258	266		Broadway Ave.) to its intersection with Loop 49;
259	267		THENCE Northeasterly with the centerline of Loop 49 to its
260	268		intersection with F.M. 756 (South Paluxy Drive);
261	269		THENCE Southeasterly with the centerline of F.M. 756 (South Paluxy
262	270		Drive) to its intersection with F.M. 346;
263	271		THENCE Southwesterly with the centerline of F.M. 346 to its
264	272		intersection with County Road 15;
265	273		THENCE Southerly with the centerline of County Road 15 to its
266	274		intersection with County Road 129;
267	275		THENCE Northeasterly with the centerline of County Road 129 to its
268	276		intersection with County Road 112;
269	277		THENCE with the centerline of County Road 112 to its intersection
270	278		with County Road 113;
271	279		THENCE with the centerline of County Road 113 to its intersection
272	280		with County Road 152;
273	281		THENCE Southwesterly with the centerline of County Road 152 to its
274	282		intersection with U.S. Highway No. 69;
275	283		THENCE Southeasterly with the centerline of U.S. Highway No. 69 to
276	284		its intersection with the South boundary line of Liberty Utilities
277	285		(Woodmark) CCN 20679 as shown by digital map on 3-08-2019 per the
278	286		Public Utility Commission of Texas website, same being on the East
279	287		boundary line of the City of Bullard, Texas, Sewer CCN 20903 as
280	288		shown by digital map on 3-08-2019 per the Public Utility Commission
281	289		of Texas website;
282	290		THENCE Southwesterly with said East boundary line of Bullard, Texas
283	291		CCN 20903 and South boundary line of Liberty Utilities (Woodmark)
284	292		CCN 20679 to its intersection with Tyler and Bullard ETJ Agreement
285	293		Boundary;
286	294		THENCE South 87˚ 24 min 9 sec West with a distance of 228.46 ft;
287	295		THENCE South 87˚ 15 min 49 sec West with a distance of 1,411.05 ft;
288	296		THENCE North 3˚ 23 min 18 sec West with a distance of 116.67 ft;
289	297		THENCE South 57˚ 12 min 37 sec West with a distance of 519.18 ft to
290	298		its intersection with F. M. 2493;
291	299		THENCE Northwesterly with the centerline of F.M. 2493 to an ell
292	300		corner in the West line of said CCN 20679;
293	301		THENCE West continuing with the West boundary line of said CCN 20679
294	302		to its intersection with the centerline of County Road 173 and being
295	303		the Westerly Southwest corner of said CCN 20679;
296	304		THENCE Northerly with the centerline of County Road 173 to its
297	305		intersection with the centerline of County Road 175;
298	306		THENCE Westerly with the centerline of County Road 175 to its
299	307		intersection with the centerline of F.M. 346;
300	308		THENCE Westerly with the centerline of F.M. 346 to its intersection
301	309		with the centerline of County Road 185 (Oak Hollow Road);
302	310		THENCE Westerly with the centerline of County Road 185 to its
303	311		intersection with the centerline of County Road 178 (Old Palestine
304	312		Highway);
305	313		THENCE Northeasterly with the centerline of County Road 178 (Old
306	314		Palestine Highway) to its intersection with the centerline of
307	315		County Road 168 (Saline Creek Road);
308	316		THENCE Northeasterly with the centerline of County Road 168 to its
309	317		intersection with the centerline of County Road 178 (Jonestown
310	318		Road);
311	319		THENCE North with the centerline of County Road 178 to its
312	320		intersection with the centerline of County Road 192 (Old Noonday
313	321		Road);
314	322		THENCE Northeasterly with the centerline of County Road 192 to its
315	323		intersection with the centerline of County Road 193 (Taylor Road);
316	324		THENCE Northwesterly with the centerline of County Road 193 to its
317	325		intersection with the centerline of State Highway No. 155;
318	326		THENCE Northeasterly with the centerline of State Highway No. 155
319	327		to the place of beginning containing 21,118 acres of land, plus or
320	328		minus.
321	329		"This document was prepared under 22 TAC §663.21, does not reflect
322	330		the results of an on the ground survey, and is not to be used to
323	331		convey or establish interests in real property except those rights
324	332		and interests implied or established by the creation or
325	333		reconfiguration of the boundary of the political subdivision for
326	334		which it was prepared."
327	335		The acreage shown were calculated from aerial photography and are
328	336		an approximation only.
329	337		SECTION 3. (a) The legal notice of the intention to
330	338		introduce this Act, setting forth the general substance of this
331	339		Act, has been published as provided by law, and the notice and a
332	340		copy of this Act have been furnished to all persons, agencies,
333	341		officials, or entities to which they are required to be furnished
334	342		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
335	343		Government Code.
336	344		(b) The governor, one of the required recipients, has
337	345		submitted the notice and Act to the Texas Commission on
338	346		Environmental Quality.
339	347		(c) The Texas Commission on Environmental Quality has filed
340	348		its recommendations relating to this Act with the governor, the
341	349		lieutenant governor, and the speaker of the house of
342	350		representatives within the required time.
343	351		(d) All requirements of the constitution and laws of this
344	352		state and the rules and procedures of the legislature with respect
345	353		to the notice, introduction, and passage of this Act are fulfilled
346	354		and accomplished.
347	355		SECTION 4. (a) Section 7958.0304, Special District Local
348	356		Laws Code, as added by Section 1 of this Act, takes effect only if
349	357		this Act receives a two-thirds vote of all the members elected to
350	358		each house.
351	359		(b) If this Act does not receive a two-thirds vote of all the
352	360		members elected to each house, Subchapter C, Chapter 7958, Special
353	361		District Local Laws Code, as added by Section 1 of this Act, is
354	362		amended by adding Section 7958.0304 to read as follows:
355	363		Sec. 7958.0304. NO EMINENT DOMAIN POWER. The district may
356	364		not exercise the power of eminent domain.
357	365		(c) This section is not intended to be an expression of a
358	366		legislative interpretation of the requirements of Section 17(c),
359	367		Article I, Texas Constitution.
360	368		SECTION 5. This Act takes effect September 1, 2019.
361		-	______________________________ ______________________________
362		-	President of the Senate Speaker of the House
363		-	I certify that H.B. No. 4749 was passed by the House on May
364		-	10, 2019, by the following vote: Yeas 123, Nays 18, 2 present, not
365		-	voting; that the House refused to concur in Senate amendments to
366		-	H.B. No. 4749 on May 23, 2019, and requested the appointment of a
367		-	conference committee to consider the differences between the two
368		-	houses; and that the House adopted the conference committee report
369		-	on H.B. No. 4749 on May 25, 2019, by the following vote: Yeas 75,
370		-	Nays 62, 2 present, not voting.
371		-	______________________________
372		-	Chief Clerk of the House
373		-	I certify that H.B. No. 4749 was passed by the Senate, with
374		-	amendments, on May 21, 2019, by the following vote: Yeas 29, Nays
375		-	2; at the request of the House, the Senate appointed a conference
376		-	committee to consider the differences between the two houses; and
377		-	that the Senate adopted the conference committee report on H.B. No.
378		-	4749 on May 25, 2019, by the following vote: Yeas 28, Nays 2.
379		-	______________________________
380		-	Secretary of the Senate
381		-	APPROVED: __________________
382		-	Date
383		-	__________________
384		-	Governor
	369	+	* * * * *