Texas 2019 - 86th Regular

Texas Senate Bill SB2517 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2517
	1	+	By: Nichols S.B. No. 2517
	2	+	(Bailes)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the conversion of the May Public Utility District to the
6	8		Harris-Liberty Counties Municipal Utility District No. 1; granting
7	9		a limited power of eminent domain; providing authority to issue
8	10		bonds; providing authority to impose assessments, fees, or taxes.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. The May Public Utility District is converted to
11	13		the Harris-Liberty Counties Municipal Utility District No. 1 and is
12	14		governed by Chapter 7893, Special District Local Laws Code, as
13	15		added by this Act.
14	16		SECTION 2. Subtitle F, Title 6, Special District Local Laws
15	17		Code, is amended by adding Chapter 7893 to read as follows:
16	18		CHAPTER 7893. HARRIS-LIBERTY COUNTIES MUNICIPAL UTILITY DISTRICT
17	19		NO. 1
18	20		SUBCHAPTER A. GENERAL PROVISIONS
19	21		Sec. 7893.0101. DEFINITIONS. In this chapter:
20	22		(1) "Board" means the district's board of directors.
21	23		(2) "Commission" means the Texas Commission on
22	24		Environmental Quality.
23	25		(3) "Director" means a board member.
24	26		(4) "District" means the Harris-Liberty Counties
25	27		Municipal Utility District No. 1.
26	28		Sec. 7893.0102. NATURE OF DISTRICT. The district is a
27	29		district created under Section 59, Article XVI, Texas Constitution,
28	30		as the May Public Utility District and converted to a municipal
29	31		utility district as the Harris-Liberty Counties Municipal Utility
30	32		District No. 1.
31	33		Sec. 7893.0103. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
32	34		(a) The district is converted and operates to serve a public
33	35		purpose and benefit.
34	36		(b) The district is converted and operates to accomplish the
35	37		purposes of:
36	38		(1) a municipal utility district as provided by
37	39		general law and Section 59, Article XVI, Texas Constitution; and
38	40		(2) Section 52, Article III, Texas Constitution, that
39	41		relate to the construction, acquisition, improvement, operation,
40	42		or maintenance of macadamized, graveled, or paved roads, or
41	43		improvements, including storm drainage, in aid of those roads.
42	44		Sec. 7893.0104. DISTRICT TERRITORY. The district is
43	45		composed of the territory of the former May Public Utility District
44	46		as that territory existed on January 1, 2019.
45	47		SUBCHAPTER B. BOARD OF DIRECTORS
46	48		Sec. 7893.0201. GOVERNING BODY; TERMS. (a) The district
47	49		is governed by a board of five elected directors.
48	50		(b) Except as provided by Section 7893.0202, directors
49	51		serve staggered four-year terms.
50	52		Sec. 7893.0202. TEMPORARY DIRECTORS. (a) On or after the
51	53		effective date of the Act enacting this chapter, the owner or owners
52	54		of a majority of the assessed value of the real property in the
53	55		district may submit a petition to the commission requesting that
54	56		the commission appoint as temporary directors the five persons
55	57		named in the petition. The commission shall appoint as temporary
56	58		directors the five persons named in the petition.
57	59		(b) Temporary directors serve until the earlier of:
58	60		(1) the date permanent directors are elected at an
59	61		election held under Section 49.102, Water Code; or
60	62		(2) the fourth anniversary of the effective date of
61	63		the Act enacting this chapter.
62	64		(c) If permanent directors have not been elected at an
63	65		election held under Section 49.102, Water Code, and the terms of the
64	66		temporary directors have expired, successor temporary directors
65	67		shall be appointed or reappointed as provided by Subsection (d) to
66	68		serve terms that expire on the earlier of:
67	69		(1) the date permanent directors are elected at an
68	70		election held under Section 49.102, Water Code; or
69	71		(2) the fourth anniversary of the date of the
70	72		appointment or reappointment.
71	73		(d) If Subsection (c) applies, the owner or owners of a
72	74		majority of the assessed value of the real property in the district
73	75		may submit a petition to the commission requesting that the
74	76		commission appoint as successor temporary directors the five
75	77		persons named in the petition. The commission shall appoint as
76	78		successor temporary directors the five persons named in the
77	79		petition.
78	80		SUBCHAPTER C. POWERS AND DUTIES
79	81		Sec. 7893.0301. GENERAL POWERS AND DUTIES. The district
80	82		has the powers and duties necessary to accomplish the purposes
81	83		described by this chapter.
82	84		Sec. 7893.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
83	85		DUTIES. The district has the powers and duties provided by the
84	86		general law of this state, including Chapters 49 and 54, Water Code,
85	87		applicable to municipal utility districts created under Section 59,
86	88		Article XVI, Texas Constitution.
87	89		Sec. 7893.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
88	90		52, Article III, Texas Constitution, the district may design,
89	91		acquire, construct, finance, issue bonds for, improve, operate,
90	92		maintain, and convey to this state, a county, or a municipality for
91	93		operation and maintenance macadamized, graveled, or paved roads, or
92	94		improvements, including storm drainage, in aid of those roads.
93	95		Sec. 7893.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
94	96		road project must meet all applicable construction standards,
95	97		zoning and subdivision requirements, and regulations of each
96	98		municipality in whose corporate limits or extraterritorial
97	99		jurisdiction the road project is located.
98	100		(b) If a road project is not located in the corporate limits
99	101		or extraterritorial jurisdiction of a municipality, the road
100	102		project must meet all applicable construction standards,
101	103		subdivision requirements, and regulations of each county in which
102	104		the road project is located.
103	105		(c) If the state will maintain and operate the road, the
104	106		Texas Transportation Commission must approve the plans and
105	107		specifications of the road project.
106	108		Sec. 7893.0305. COMPLIANCE WITH MUNICIPAL CONSENT
107	109		ORDINANCE OR RESOLUTION. The district shall comply with all
108	110		applicable requirements of any ordinance or resolution that is
109	111		adopted under Section 54.016 or 54.0165, Water Code.
110	112		Sec. 7893.0306. DIVISION OF DISTRICT. (a) The district
111	113		may be divided into two or more new districts only if the district:
112	114		(1) has never issued any bonds before or after
113	115		conversion; and
114	116		(2) is not imposing ad valorem taxes.
115	117		(b) This chapter applies to any new district created by
116	118		division of the district, and a new district has all the powers and
117	119		duties of the district.
118	120		(c) A new district created by division of the district may
119	121		not, at the time the new district is created, contain land outside
120	122		the territory of the district described by Section 7893.0104.
121	123		(d) The board, on its own motion or on receipt of a petition
122	124		signed by the owner or owners of a majority of the assessed value of
123	125		the real property in the district, may adopt an order dividing the
124	126		district.
125	127		(e) The board may adopt an order dividing the district
126	128		before or after the date the board holds an election under Section
127	129		49.102, Water Code, to confirm the district's creation.
128	130		(f) An order dividing the district must:
129	131		(1) name each new district;
130	132		(2) include the metes and bounds description of the
131	133		territory of each new district;
132	134		(3) appoint temporary directors for each new district;
133	135		and
134	136		(4) provide for the division of assets and liabilities
135	137		between or among the new districts.
136	138		(g) On or before the 30th day after the date of adoption of
137	139		an order dividing the district, the district shall file the order
138	140		with the commission and record the order in the real property
139	141		records of each county in which the district is located.
140	142		(h) A new district created by division of the district shall
141	143		hold a confirmation and directors' election as required by Section
142	144		49.102, Water Code. If the creation of the new district is
143	145		confirmed, the new district shall provide the election date and
144	146		results to the commission.
145	147		(i) A new district created by division of the district must
146	148		hold an election as required by this chapter to obtain voter
147	149		approval before the district may impose a maintenance tax or issue
148	150		bonds payable wholly or partly from ad valorem taxes.
149	151		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
150	152		Sec. 7893.0401. ELECTIONS REGARDING TAXES OR BONDS.
151	153		(a) The district may issue, without an election, bonds and other
152	154		obligations secured by:
153	155		(1) revenue other than ad valorem taxes; or
154	156		(2) contract payments described by Section 7893.0403.
155	157		(b) The district must hold an election in the manner
156	158		provided by Chapters 49 and 54, Water Code, to obtain voter approval
157	159		before the district may impose an ad valorem tax or issue bonds
158	160		payable from ad valorem taxes.
159	161		(c) The district may not issue bonds payable from ad valorem
160	162		taxes to finance a road project unless the issuance is approved by a
161	163		vote of a two-thirds majority of the district voters voting at an
162	164		election held for that purpose.
163	165		Sec. 7893.0402. OPERATION AND MAINTENANCE TAX. (a) If
164	166		authorized at an election held under Section 7893.0401, the
165	167		district may impose an operation and maintenance tax on taxable
166	168		property in the district in accordance with Section 49.107, Water
167	169		Code.
168	170		(b) The board shall determine the tax rate. The rate may not
169	171		exceed the rate approved at the election.
170	172		Sec. 7893.0403. CONTRACT TAXES. (a) In accordance with
171	173		Section 49.108, Water Code, the district may impose a tax other than
172	174		an operation and maintenance tax and use the revenue derived from
173	175		the tax to make payments under a contract after the provisions of
174	176		the contract have been approved by a majority of the district voters
175	177		voting at an election held for that purpose.
176	178		(b) A contract approved by the district voters may contain a
177	179		provision stating that the contract may be modified or amended by
178	180		the board without further voter approval.
179	181		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
180	182		Sec. 7893.0501. AUTHORITY TO ISSUE BONDS AND OTHER
181	183		OBLIGATIONS. The district may issue bonds or other obligations
182	184		payable wholly or partly from ad valorem taxes, impact fees,
183	185		revenue, contract payments, grants, or other district money, or any
184	186		combination of those sources, to pay for any authorized district
185	187		purpose.
186	188		Sec. 7893.0502. TAXES FOR BONDS. At the time the district
187	189		issues bonds payable wholly or partly from ad valorem taxes, the
188	190		board shall provide for the annual imposition of a continuing
189	191		direct ad valorem tax, without limit as to rate or amount, while all
190	192		or part of the bonds are outstanding as required and in the manner
191	193		provided by Sections 54.601 and 54.602, Water Code.
192	194		Sec. 7893.0503. BONDS FOR ROAD PROJECTS. At the time of
193	195		issuance, the total principal amount of bonds or other obligations
194	196		issued or incurred to finance road projects and payable from ad
195	197		valorem taxes may not exceed one-fourth of the assessed value of the
196	198		real property in the district.
197	199		SECTION 3. Chapter 624, Acts of the 62nd Legislature,
198	200		Regular Session, 1971, is repealed.
199	201		SECTION 4. The Harris-Liberty Counties Municipal Utility
200	202		District No. 1 retains all rights, powers, privileges, authority,
201	203		duties, and functions that the May Public Utility District had
202	204		before the effective date of this Act, except as otherwise
203	205		expressly provided by Chapter 7893, Special District Local Laws
204	206		Code, as added by this Act.
205	207		SECTION 5. (a) The legislature validates and confirms all
206	208		governmental acts and proceedings of the May Public Utility
207	209		District that were taken before the effective date of this Act.
208	210		(b) This section does not apply to any matter that on the
209	211		effective date of this Act:
210	212		(1) is involved in litigation if the litigation
211	213		ultimately results in the matter being held invalid by a final court
212	214		judgment; or
213	215		(2) has been held invalid by a final court judgment.
214	216		SECTION 6. (a) The legal notice of the intention to
215	217		introduce this Act, setting forth the general substance of this
216	218		Act, has been published as provided by law, and the notice and a
217	219		copy of this Act have been furnished to all persons, agencies,
218	220		officials, or entities to which they are required to be furnished
219	221		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
220	222		Government Code.
221	223		(b) The governor, one of the required recipients, has
222	224		submitted the notice and Act to the Texas Commission on
223	225		Environmental Quality.
224	226		(c) The Texas Commission on Environmental Quality has filed
225	227		its recommendations relating to this Act with the governor, the
226	228		lieutenant governor, and the speaker of the house of
227	229		representatives within the required time.
228	230		(d) All requirements of the constitution and laws of this
229	231		state and the rules and procedures of the legislature with respect
230	232		to the notice, introduction, and passage of this Act are fulfilled
231	233		and accomplished.
232	234		(e) The general law relating to consent by political
233	235		subdivisions to the creation of districts with conservation,
234	236		reclamation, and road powers and the inclusion of land in those
235	237		districts has been complied with.
236	238		SECTION 7. (a) If this Act does not receive a two-thirds
237	239		vote of all the members elected to each house, Subchapter C, Chapter
238	240		7893, Special District Local Laws Code, as added by Section 2 of
239	241		this Act, is amended by adding Section 7893.0307 to read as follows:
240	242		Sec. 7893.0307. NO EMINENT DOMAIN POWER. The district may
241	243		not exercise the power of eminent domain.
242	244		(b) This section is not intended to be an expression of a
243	245		legislative interpretation of the requirements of Section 17(c),
244	246		Article I, Texas Constitution.
245	247		SECTION 8. This Act takes effect immediately if it receives
246	248		a vote of two-thirds of all the members elected to each house, as
247	249		provided by Section 39, Article III, Texas Constitution. If this
248	250		Act does not receive the vote necessary for immediate effect, this
249	251		Act takes effect September 1, 2019.
250		-	______________________________ ______________________________
251		-	President of the Senate Speaker of the House
252		-	I hereby certify that S.B. No. 2517 passed the Senate on
253		-	April 26, 2019, by the following vote: Yeas 29, Nays 1.
254		-	______________________________
255		-	Secretary of the Senate
256		-	I hereby certify that S.B. No. 2517 passed the House on
257		-	May 14, 2019, by the following vote: Yeas 119, Nays 22, two
258		-	present not voting.
259		-	______________________________
260		-	Chief Clerk of the House
261		-	Approved:
262		-	______________________________
263		-	Date
264		-	______________________________
265		-	Governor