H.B. No. 4749
AN ACT
relating to the creation of the Rose City Municipal Utility
District; granting a limited power of eminent domain; providing
authority to issue bonds; providing authority to impose assessments
and fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 7958 to read as follows:
CHAPTER 7958. ROSE CITY MUNICIPAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7958.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Tyler.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "Director" means a board member.
(5) "District" means the Rose City Municipal Utility
District.
(6) "Utility commission" means the Public Utility
Commission of Texas.
Sec. 7958.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7958.0103. CONFIRMATION ELECTION REQUIRED. The
initial directors appointed under Section 7958.0201 shall hold an
election to confirm the creation of the district as provided by
Section 49.102, Water Code.
Sec. 7958.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7958.0103 until each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located has
consented by ordinance or resolution to the creation of the
district and to the inclusion of land in the district.
Sec. 7958.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
(a) The district is created to serve a public purpose and benefit.
(b) The district is created to accomplish the purposes of a
municipal utility district as provided by general law and Section
59, Article XVI, Texas Constitution.
Sec. 7958.0106. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake made in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond; or
(3) legality or operation.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7958.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five directors appointed as follows:
(1) three directors appointed by the city; and
(2) two directors appointed by the Smith County
Commissioners Court.
(b) Directors serve staggered four-year terms.
(c) The appointing entities shall appoint the initial
directors not later than September 1, 2020. The initial directors
appointed under Subsection (a)(1) serve a four-year term, and the
directors appointed under Subsection (a)(2) serve a two-year term.
This subsection expires September 1, 2023.
Sec. 7958.0202. QUALIFICATIONS OF DIRECTORS. (a)
Notwithstanding any other law:
(1) an officer or employee of the city may serve as a
director of the district; and
(2) a member of the governing body of the city may
serve as a director of the district.
(b) A person who qualifies to serve as a director is
qualified to participate in all votes pertaining to the business of
the district, subject to Section 49.058, Water Code.
(c) Section 49.052, Water Code, does not apply to the
district.
Sec. 7958.0203. COMPENSATION; REIMBURSEMENT. A director
serves without compensation but may receive reimbursement for
actual expenses reasonably and necessarily incurred while engaging
in activities on behalf of the district.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7958.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7958.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
DUTIES. (a) Subject to Subsection (b), 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.
(b) The district may provide only sewer and wastewater
services, including the acquisition, construction, contracting,
financing, maintenance, operation, and planning of sewer and
wastewater facilities or systems.
Sec. 7958.0303. COMPLIANCE WITH MUNICIPAL CONSENT
ORDINANCE OR RESOLUTION. The district shall comply with all
applicable requirements of any ordinance or resolution that is
adopted under Section 54.016 or 54.0165, Water Code, and that
consents to the creation of the district or to the inclusion of land
in the district.
Sec. 7958.0304. LIMITED POWER OF EMINENT DOMAIN. The
district may exercise the power of eminent domain only for the
limited purpose of acquiring or constructing sewer and wastewater
facilities.
Sec. 7958.0305. CONTRACTING. The district may contract
with a political subdivision or private operator to operate and
maintain the district's sewer and wastewater facilities.
Sec. 7958.0306. CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY. (a) Notwithstanding Chapter 13, Water Code, the
district may provide sewer and wastewater service without a
certificate of convenience and necessity.
(b) Not later than the 30th day before the date the district
intends to provide sewer and wastewater service, the district must
notify the utility commission and each retail public utility that
provides sewer and wastewater services in the district.
(c) If the district does not acquire a retail public utility
that holds a certificate of public convenience and necessity for
providing sewer and wastewater service in the district territory,
the district shall:
(1) not later than the 30th day after the date the
district begins providing sewer and wastewater service, petition
the utility commission to decertify the territory inside the
district of the existing certificate holder; and
(2) compensate the existing certificate holder in an
amount determined by the utility commission.
Sec. 7958.0307. PROFESSIONAL SERVICES. The district may
contract with a political subdivision to provide professional
services for the district, including legal services related to the
exercise of eminent domain.
Sec. 7958.0308. SUPERMAJORITY VOTE REQUIRED FOR CERTAIN
ACTIONS. At least four board members must vote in favor of a
resolution before the board may:
(1) increase rates or assessments by more than five
percent;
(2) incur debt or increase the amount of debt that the
district has outstanding; or
(3) order a dissolution election under Section
7958.0601.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7958.0401. ELECTIONS REGARDING BONDS. The district
may issue, without an election, bonds and other obligations secured
by revenue other than ad valorem taxes.
Sec. 7958.0402. PROHIBITION ON IMPOSITION OF TAXES. (a) The
district may not impose an ad valorem tax for any purpose.
(b) Section 49.107, Water Code, does not apply to the
district.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7958.0501. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations
payable wholly or partly from impact fees, revenue, contract
payments, grants, or other district money, or any combination of
those sources, to pay for any authorized district purpose.
SUBCHAPTER F. DISSOLUTION BY ELECTION
Sec. 7958.0601. DISSOLUTION ELECTION CALLED BY BOARD. The
board may order an election on the question of dissolving the
district and transferring the district's assets and obligations to
another political subdivision of the state, if the board concludes
after a public hearing held on the issue that it is in the best
interest of the district's residents and of the persons served by
the district for the district to dissolve.
Sec. 7958.0602. DISSOLUTION ELECTION CALLED BY PETITION.
The board shall order an election on the question of dissolving the
district and transferring the district's assets and obligations to
another political subdivision of the state if the board receives a
petition requesting an election on that question. The petition
must be signed by at least 15 percent of the district's registered
voters.
Sec. 7958.0603. ELECTION ORDER. An order calling an
election held under this subchapter must state:
(1) the nature of the election, including the
proposition that is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open; and
(4) the location of the polling places.
Sec. 7958.0604. NOTICE OF DISSOLUTION ELECTION. (a) The
board shall give notice of an election ordered under this
subchapter by publishing a substantial copy of the election order
in a newspaper with general circulation in the district once a week
for two consecutive weeks.
(b) The first publication must appear not later than the
30th day before the date set for the election.
Sec. 7958.0605. APPLICABILITY OF UNIFORM ELECTION DATES.
Section 41.001, Election Code, does not apply to an election held
under this subchapter.
Sec. 7958.0606. ELECTION RESULTS. (a) If a majority of the
votes in an election held under this subchapter favor dissolution,
the board shall order that the district be dissolved.
(b) If a majority of the votes in an election held under this
subchapter do not favor dissolution, the board shall continue to
administer the district, and another election on the question of
dissolution may not be held before the first anniversary of the date
of the most recent election held on the question of dissolving the
district.
Sec. 7958.0607. TRANSFER OF ASSETS, OBLIGATIONS, AND
PROVISION OF SERVICES. (a) As soon as practicable following the
issuance of an order under Section 7958.0606(a), the board shall:
(1) begin the process of transferring the district's
assets and obligations to one or more political subdivisions in a
fair and equitable manner; and
(2) administer the property, assets, and debts of the
district until all money has been disposed of and all district debts
have been paid or settled.
(b) If the district provides services, the board or a
receiver appointed under Section 7958.0608 shall make arrangements
for the uninterrupted provision of services.
Sec. 7958.0608. RECEIVER. If the executive director of the
commission determines that the board has failed to make substantial
progress in transferring the district's assets and obligations to
one or more political subdivisions in a fair and equitable manner,
the executive director shall appoint a receiver for the district.
Sec. 7958.0609. REPORT; DISSOLUTION ORDER. (a) After the
district has transferred all of the district's assets and
obligations and has arranged for the continued provision of
services provided by the district, if applicable, the board shall
file a written report with the commission summarizing the board's
actions in dissolving the district.
(b) Not later than the 10th day after the date the
commission receives the report and determines that the requirements
of this subchapter have been fulfilled, the commission shall enter
an order dissolving the district.
SUBCHAPTER G. ANNEXATION OF LAND
Sec. 7958.0701. GENERAL ANNEXATION PROVISIONS. (a) Except
as provided by this section, Subchapter J, Chapter 49, Water Code,
applies to the district.
(b) In addition to the requirements of Section 49.302(b),
Water Code, the petition must also be signed by a majority of
registered voters in the defined area to be annexed.
Sec. 7958.0702. RETALIATION FOR ANNEXATION DISAPPROVAL
PROHIBITED. (a) The disapproval of the proposed annexation of an
area by the district does not affect any existing legal obligation
of the district to continue to provide services in the area,
including wastewater services.
(b) The district may not initiate a rate proceeding solely
because of the disapproval of a proposed annexation of an area.
SECTION 2. The Rose City Municipal Utility District
initially includes all the territory contained in the following
area:
BEING a 21,118 acre tract of land situated in Smith County, Texas,
said 21,118 acre tract being more completely described by metes and
bounds as follows:
BEGINNING at the intersection of the centerline of State Highway
No. 155 with State Highway 57 (West Grande Boulevard);
THENCE Easterly with the centerline of West Grande Boulevard to its
intersection with F.M. 2493 (Old Jacksonville Highway);
THENCE Southwesterly with the centerline of F.M. 2493 (Old
Jacksonville Highway) to its intersection with Three Lakes Parkway;
THENCE Southeasterly with the centerline of Three Lakes Parkway to
its intersection with Dueling Oaks;
THENCE Easterly with the centerline of Dueling Oaks to its
intersection with Hollytree Drive;
THENCE Southwesterly with the centerline of Hollytree Drive to its
intersection with Maple Lane;
THENCE Southerly with the centerline of Maple Lane to its
intersection with West Cumberland Road;
THENCE Easterly with the centerline of West Cumberland Road to its
intersection with U.S. Highway 69 (South Broadway Ave.);
THENCE Southerly with the centerline of U.S. Highway 69 (South
Broadway Ave.) to its intersection with Loop 49;
THENCE Northeasterly with the centerline of Loop 49 to its
intersection with F.M. 756 (South Paluxy Drive);
THENCE Southeasterly with the centerline of F.M. 756 (South Paluxy
Drive) to its intersection with F.M. 346;
THENCE Southwesterly with the centerline of F.M. 346 to its
intersection with County Road 15;
THENCE Southerly with the centerline of County Road 15 to its
intersection with County Road 129;
THENCE Northeasterly with the centerline of County Road 129 to its
intersection with County Road 112;
THENCE with the centerline of County Road 112 to its intersection
with County Road 113;
THENCE with the centerline of County Road 113 to its intersection
with County Road 152;
THENCE Southwesterly with the centerline of County Road 152 to its
intersection with U.S. Highway No. 69;
THENCE Southeasterly with the centerline of U.S. Highway No. 69 to
its intersection with the South boundary line of Liberty Utilities
(Woodmark) CCN 20679 as shown by digital map on 3-08-2019 per the
Public Utility Commission of Texas website, same being on the East
boundary line of the City of Bullard, Texas, Sewer CCN 20903 as
shown by digital map on 3-08-2019 per the Public Utility Commission
of Texas website;
THENCE Southwesterly with said East boundary line of Bullard, Texas
CCN 20903 and South boundary line of Liberty Utilities (Woodmark)
CCN 20679 to its intersection with Tyler and Bullard ETJ Agreement
Boundary;
THENCE South 87˚ 24 min 9 sec West with a distance of 228.46 ft;
THENCE South 87˚ 15 min 49 sec West with a distance of 1,411.05 ft;
THENCE North 3˚ 23 min 18 sec West with a distance of 116.67 ft;
THENCE South 57˚ 12 min 37 sec West with a distance of 519.18 ft to
its intersection with F. M. 2493;
THENCE Northwesterly with the centerline of F.M. 2493 to an ell
corner in the West line of said CCN 20679;
THENCE West continuing with the West boundary line of said CCN 20679
to its intersection with the centerline of County Road 173 and being
the Westerly Southwest corner of said CCN 20679;
THENCE Northerly with the centerline of County Road 173 to its
intersection with the centerline of County Road 175;
THENCE Westerly with the centerline of County Road 175 to its
intersection with the centerline of F.M. 346;
THENCE Westerly with the centerline of F.M. 346 to its intersection
with the centerline of County Road 185 (Oak Hollow Road);
THENCE Westerly with the centerline of County Road 185 to its
intersection with the centerline of County Road 178 (Old Palestine
Highway);
THENCE Northeasterly with the centerline of County Road 178 (Old
Palestine Highway) to its intersection with the centerline of
County Road 168 (Saline Creek Road);
THENCE Northeasterly with the centerline of County Road 168 to its
intersection with the centerline of County Road 178 (Jonestown
Road);
THENCE North with the centerline of County Road 178 to its
intersection with the centerline of County Road 192 (Old Noonday
Road);
THENCE Northeasterly with the centerline of County Road 192 to its
intersection with the centerline of County Road 193 (Taylor Road);
THENCE Northwesterly with the centerline of County Road 193 to its
intersection with the centerline of State Highway No. 155;
THENCE Northeasterly with the centerline of State Highway No. 155
to the place of beginning containing 21,118 acres of land, plus or
minus.
"This document was prepared under 22 TAC §663.21, does not reflect
the results of an on the ground survey, and is not to be used to
convey or establish interests in real property except those rights
and interests implied or established by the creation or
reconfiguration of the boundary of the political subdivision for
which it was prepared."
The acreage shown were calculated from aerial photography and are
an approximation only.
SECTION 3. (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 4. (a) Section 7958.0304, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 7958, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 7958.0304 to read as follows:
Sec. 7958.0304. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(c) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4749 was passed by the House on May
10, 2019, by the following vote: Yeas 123, Nays 18, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 4749 on May 23, 2019, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 4749 on May 25, 2019, by the following vote: Yeas 75,
Nays 62, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4749 was passed by the Senate, with
amendments, on May 21, 2019, by the following vote: Yeas 29, Nays
2; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
4749 on May 25, 2019, by the following vote: Yeas 28, Nays 2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor