By: Nichols S.B. No. 2517
(Bailes)
A BILL TO BE ENTITLED
AN ACT
relating to the conversion of the May Public Utility District to the
Harris-Liberty Counties Municipal Utility District No. 1; granting
a limited power of eminent domain; providing authority to issue
bonds; providing authority to impose assessments, fees, or taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The May Public Utility District is converted to
the Harris-Liberty Counties Municipal Utility District No. 1 and is
governed by Chapter 7893, Special District Local Laws Code, as
added by this Act.
SECTION 2. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 7893 to read as follows:
CHAPTER 7893. HARRIS-LIBERTY COUNTIES MUNICIPAL UTILITY DISTRICT
NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7893.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Director" means a board member.
(4) "District" means the Harris-Liberty Counties
Municipal Utility District No. 1.
Sec. 7893.0102. NATURE OF DISTRICT. The district is a
district created under Section 59, Article XVI, Texas Constitution,
as the May Public Utility District and converted to a municipal
utility district as the Harris-Liberty Counties Municipal Utility
District No. 1.
Sec. 7893.0103. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
(a) The district is converted and operates to serve a public
purpose and benefit.
(b) The district is converted and operates to accomplish the
purposes of:
(1) a municipal utility district as provided by
general law and Section 59, Article XVI, Texas Constitution; and
(2) Section 52, Article III, Texas Constitution, that
relate to the construction, acquisition, improvement, operation,
or maintenance of macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Sec. 7893.0104. DISTRICT TERRITORY. The district is
composed of the territory of the former May Public Utility District
as that territory existed on January 1, 2019.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7893.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7893.0202, directors
serve staggered four-year terms.
Sec. 7893.0202. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district may submit a petition to the commission requesting that
the commission appoint as temporary directors the five persons
named in the petition. The commission shall appoint as temporary
directors the five persons named in the petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected at an
election held under Section 49.102, Water Code; or
(2) the fourth anniversary of the effective date of
the Act enacting this chapter.
(c) If permanent directors have not been elected at an
election held under Section 49.102, Water Code, and the terms of the
temporary directors have expired, successor temporary directors
shall be appointed or reappointed as provided by Subsection (d) to
serve terms that expire on the earlier of:
(1) the date permanent directors are elected at an
election held under Section 49.102, Water Code; or
(2) the fourth anniversary of the date of the
appointment or reappointment.
(d) If Subsection (c) applies, the owner or owners of a
majority of the assessed value of the real property in the district
may submit a petition to the commission requesting that the
commission appoint as successor temporary directors the five
persons named in the petition. The commission shall appoint as
successor temporary directors the five persons named in the
petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7893.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes
described by this chapter.
Sec. 7893.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
DUTIES. 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.
Sec. 7893.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
52, Article III, Texas Constitution, the district may design,
acquire, construct, finance, issue bonds for, improve, operate,
maintain, and convey to this state, a county, or a municipality for
operation and maintenance macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Sec. 7893.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
road project must meet all applicable construction standards,
zoning and subdivision requirements, and regulations of each
municipality in whose corporate limits or extraterritorial
jurisdiction the road project is located.
(b) If a road project is not located in the corporate limits
or extraterritorial jurisdiction of a municipality, the road
project must meet all applicable construction standards,
subdivision requirements, and regulations of each county in which
the road project is located.
(c) If the state will maintain and operate the road, the
Texas Transportation Commission must approve the plans and
specifications of the road project.
Sec. 7893.0305. 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.
Sec. 7893.0306. DIVISION OF DISTRICT. (a) The district
may be divided into two or more new districts only if the district:
(1) has never issued any bonds before or after
conversion; and
(2) is not imposing ad valorem taxes.
(b) This chapter applies to any new district created by
division of the district, and a new district has all the powers and
duties of the district.
(c) A new district created by division of the district may
not, at the time the new district is created, contain land outside
the territory of the district described by Section 7893.0104.
(d) The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value of
the real property in the district, may adopt an order dividing the
district.
(e) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
49.102, Water Code, to confirm the district's creation.
(f) An order dividing the district must:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between or among the new districts.
(g) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the commission and record the order in the real property
records of each county in which the district is located.
(h) A new district created by division of the district shall
hold a confirmation and directors' election as required by Section
49.102, Water Code. If the creation of the new district is
confirmed, the new district shall provide the election date and
results to the commission.
(i) A new district created by division of the district must
hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7893.0401. ELECTIONS REGARDING TAXES OR BONDS.
(a) The district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 7893.0403.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose an ad valorem tax or issue bonds
payable from ad valorem taxes.
(c) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved by a
vote of a two-thirds majority of the district voters voting at an
election held for that purpose.
Sec. 7893.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7893.0401, the
district may impose an operation and maintenance tax on taxable
property in the district in accordance with Section 49.107, Water
Code.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Sec. 7893.0403. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7893.0501. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations
payable wholly or partly from ad valorem taxes, impact fees,
revenue, contract payments, grants, or other district money, or any
combination of those sources, to pay for any authorized district
purpose.
Sec. 7893.0502. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct ad valorem tax, without limit as to rate or amount, while all
or part of the bonds are outstanding as required and in the manner
provided by Sections 54.601 and 54.602, Water Code.
Sec. 7893.0503. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other obligations
issued or incurred to finance road projects and payable from ad
valorem taxes may not exceed one-fourth of the assessed value of the
real property in the district.
SECTION 3. Chapter 624, Acts of the 62nd Legislature,
Regular Session, 1971, is repealed.
SECTION 4. The Harris-Liberty Counties Municipal Utility
District No. 1 retains all rights, powers, privileges, authority,
duties, and functions that the May Public Utility District had
before the effective date of this Act, except as otherwise
expressly provided by Chapter 7893, Special District Local Laws
Code, as added by this Act.
SECTION 5. (a) The legislature validates and confirms all
governmental acts and proceedings of the May Public Utility
District that were taken before the effective date of this Act.
(b) This section does not apply to any matter that on the
effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final court
judgment; or
(2) has been held invalid by a final court judgment.
SECTION 6. (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.
(e) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
SECTION 7. (a) If this Act does not receive a two-thirds
vote of all the members elected to each house, Subchapter C, Chapter
7893, Special District Local Laws Code, as added by Section 2 of
this Act, is amended by adding Section 7893.0307 to read as follows:
Sec. 7893.0307. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) 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 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.