Texas 2019 - 86th Regular

Texas Senate Bill SB2536 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R16953 GRM-F
2	2	By: Fallon S.B. No. 2536
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Howe Municipal Utility District No.
8	8	1; granting a limited power of eminent domain; providing authority
9	9	to issue bonds; providing authority to impose assessments, fees,
10	10	and taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 6, Special District Local Laws
13	13	Code, is amended by adding Chapter 8100 to read as follows:
14	14	CHAPTER 8100. HOWE MUNICIPAL UTILITY DISTRICT NO. 1
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 8100.0101. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the district's board of directors.
18	18	(2) "Commission" means the Texas Commission on
19	19	Environmental Quality.
20	20	(3) "Director" means a board member.
21	21	(4) "District" means the Howe Municipal Utility
22	22	District No. 1.
23	23	Sec. 8100.0102. NATURE OF DISTRICT. The district is a
24	24	municipal utility district created under Section 59, Article XVI,
25	25	Texas Constitution.
26	26	Sec. 8100.0103. CONFIRMATION AND DIRECTOR ELECTION
27	27	REQUIRED. The temporary directors shall hold an election to
28	28	confirm the creation of the district and to elect five permanent
29	29	directors as provided by Section 49.102, Water Code.
30	30	Sec. 8100.0104. CONSENT OF MUNICIPALITY REQUIRED. The
31	31	temporary directors may not hold an election under Section
32	32	8100.0103 until each municipality in whose corporate limits or
33	33	extraterritorial jurisdiction the district is located has
34	34	consented by ordinance or resolution to the creation of the
35	35	district and to the inclusion of land in the district.
36	36	Sec. 8100.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
37	37	(a) The district is created to serve a public purpose and benefit.
38	38	(b) The district is created to accomplish the purposes of:
39	39	(1) a municipal utility district as provided by
40	40	general law and Section 59, Article XVI, Texas Constitution; and
41	41	(2) Section 52, Article III, Texas Constitution, that
42	42	relate to the construction, acquisition, improvement, operation,
43	43	or maintenance of macadamized, graveled, or paved roads, or
44	44	improvements, including storm drainage, in aid of those roads.
45	45	Sec. 8100.0106. INITIAL DISTRICT TERRITORY. (a) The
46	46	district is initially composed of the territory described by
47	47	Section 2 of the Act enacting this chapter.
48	48	(b) The boundaries and field notes contained in Section 2 of
49	49	the Act enacting this chapter form a closure. A mistake made in the
50	50	field notes or in copying the field notes in the legislative process
51	51	does not affect the district's:
52	52	(1) organization, existence, or validity;
53	53	(2) right to issue any type of bond for the purposes
54	54	for which the district is created or to pay the principal of and
55	55	interest on a bond;
56	56	(3) right to impose a tax; or
57	57	(4) legality or operation.
58	58	SUBCHAPTER B. BOARD OF DIRECTORS
59	59	Sec. 8100.0201. GOVERNING BODY; TERMS. (a) The district is
60	60	governed by a board of five elected directors.
61	61	(b) Except as provided by Section 8100.0202, directors
62	62	serve staggered four-year terms.
63	63	Sec. 8100.0202. TEMPORARY DIRECTORS. (a) The temporary
64	64	board consists of:
65	65	(1) Linda Baker;
66	66	(2) Cynthia Lowe Bakhashab;
67	67	(3) Debra Brown;
68	68	(4) Telicia Marie Owens; and
69	69	(5) David Lee Taylor.
70	70	(b) Temporary directors serve until the earlier of:
71	71	(1) the date permanent directors are elected under
72	72	Section 8100.0103; or
73	73	(2) the fourth anniversary of the effective date of
74	74	the Act enacting this chapter.
75	75	(c) If permanent directors have not been elected under
76	76	Section 8100.0103 and the terms of the temporary directors have
77	77	expired, successor temporary directors shall be appointed or
78	78	reappointed as provided by Subsection (d) to serve terms that
79	79	expire on the earlier of:
80	80	(1) the date permanent directors are elected under
81	81	Section 8100.0103; or
82	82	(2) the fourth anniversary of the date of the
83	83	appointment or reappointment.
84	84	(d) If Subsection (c) applies, the owner or owners of a
85	85	majority of the assessed value of the real property in the district
86	86	may submit a petition to the commission requesting that the
87	87	commission appoint as successor temporary directors the five
88	88	persons named in the petition. The commission shall appoint as
89	89	successor temporary directors the five persons named in the
90	90	petition.
91	91	SUBCHAPTER C. POWERS AND DUTIES
92	92	Sec. 8100.0301. GENERAL POWERS AND DUTIES. The district
93	93	has the powers and duties necessary to accomplish the purposes for
94	94	which the district is created.
95	95	Sec. 8100.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
96	96	DUTIES. The district has the powers and duties provided by the
97	97	general law of this state, including Chapters 49 and 54, Water Code,
98	98	applicable to municipal utility districts created under Section 59,
99	99	Article XVI, Texas Constitution.
100	100	Sec. 8100.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
101	101	52, Article III, Texas Constitution, the district may design,
102	102	acquire, construct, finance, issue bonds for, improve, operate,
103	103	maintain, and convey to this state, a county, or a municipality for
104	104	operation and maintenance macadamized, graveled, or paved roads, or
105	105	improvements, including storm drainage, in aid of those roads,
106	106	inside or outside the district.
107	107	Sec. 8100.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
108	108	road project must meet all applicable construction standards,
109	109	zoning and subdivision requirements, and regulations of each
110	110	municipality in whose corporate limits or extraterritorial
111	111	jurisdiction the road project is located.
112	112	(b) If a road project is not located in the corporate limits
113	113	or extraterritorial jurisdiction of a municipality, the road
114	114	project must meet all applicable construction standards,
115	115	subdivision requirements, and regulations of each county in which
116	116	the road project is located.
117	117	(c) If the state will maintain and operate the road, the
118	118	Texas Transportation Commission must approve the plans and
119	119	specifications of the road project.
120	120	Sec. 8100.0305. COMPLIANCE WITH AGREEMENT AND MUNICIPAL
121	121	CONSENT ORDINANCE OR RESOLUTION. The district shall comply with
122	122	the terms of the October 2017 City of Howe and Howe Commercial Ltd.
123	123	Chapter 380 Economic Development Program and Agreement, as amended,
124	124	and all applicable requirements of any ordinance or resolution that
125	125	is adopted under Section 54.016 or 54.0165, Water Code, and that
126	126	consents to the creation of the district or to the inclusion of land
127	127	in the district.
128	128	Sec. 8100.0306. DIVISION OF DISTRICT. (a) The district may
129	129	be divided into two or more new districts only if the district:
130	130	(1) has no outstanding bonded debt; and
131	131	(2) is not imposing ad valorem taxes.
132	132	(b) This chapter applies to any new district created by the
133	133	division of the district, and a new district has all the powers and
134	134	duties of the district.
135	135	(c) Any new district created by the division of the district
136	136	may not, at the time the new district is created, contain any land
137	137	outside the area described by Section 2 of the Act enacting this
138	138	chapter.
139	139	(d) The board, on its own motion or on receipt of a petition
140	140	signed by the owner or owners of a majority of the assessed value of
141	141	the real property in the district, may adopt an order dividing the
142	142	district.
143	143	(e) The board may adopt an order dividing the district
144	144	before or after the date the board holds an election under Section
145	145	8100.0103 to confirm the creation of the district.
146	146	(f) An order dividing the district must:
147	147	(1) name each new district;
148	148	(2) include the metes and bounds description of the
149	149	territory of each new district;
150	150	(3) appoint temporary directors for each new district;
151	151	and
152	152	(4) provide for the division of assets and liabilities
153	153	between or among the new districts.
154	154	(g) On or before the 30th day after the date of adoption of
155	155	an order dividing the district, the district shall file the order
156	156	with the commission and record the order in the real property
157	157	records of each county in which the district is located.
158	158	(h) Any new district created by the division of the district
159	159	shall hold a confirmation and directors' election as required by
160	160	Section 8100.0103.
161	161	(i) If the creation of the new district is confirmed, the
162	162	new district shall provide the election date and results to the
163	163	commission.
164	164	(j) Any new district created by the division of the district
165	165	must hold an election as required by this chapter to obtain voter
166	166	approval before the district may impose a maintenance tax or issue
167	167	bonds payable wholly or partly from ad valorem taxes.
168	168	(k) Municipal consent to the creation of the district and to
169	169	the inclusion of land in the district granted under Section
170	170	8100.0104 acts as municipal consent to the creation of any new
171	171	district created by the division of the district and to the
172	172	inclusion of land in the new district.
173	173	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
174	174	Sec. 8100.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
175	175	The district may issue, without an election, bonds and other
176	176	obligations secured by:
177	177	(1) revenue other than ad valorem taxes; or
178	178	(2) contract payments described by Section 8100.0403.
179	179	(b) The district must hold an election in the manner
180	180	provided by Chapters 49 and 54, Water Code, to obtain voter approval
181	181	before the district may impose an ad valorem tax or issue bonds
182	182	payable from ad valorem taxes.
183	183	(c) The district may not issue bonds payable from ad valorem
184	184	taxes to finance a road project unless the issuance is approved by a
185	185	vote of a two-thirds majority of the district voters voting at an
186	186	election held for that purpose.
187	187	Sec. 8100.0402. OPERATION AND MAINTENANCE TAX. (a) If
188	188	authorized at an election held under Section 8100.0401, the
189	189	district may impose an operation and maintenance tax on taxable
190	190	property in the district in accordance with Section 49.107, Water
191	191	Code.
192	192	(b) The board shall determine the tax rate. The rate may not
193	193	exceed the rate approved at the election.
194	194	Sec. 8100.0403. CONTRACT TAXES. (a) In accordance with
195	195	Section 49.108, Water Code, the district may impose a tax other than
196	196	an operation and maintenance tax and use the revenue derived from
197	197	the tax to make payments under a contract after the provisions of
198	198	the contract have been approved by a majority of the district voters
199	199	voting at an election held for that purpose.
200	200	(b) A contract approved by the district voters may contain a
201	201	provision stating that the contract may be modified or amended by
202	202	the board without further voter approval.
203	203	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
204	204	Sec. 8100.0501. AUTHORITY TO ISSUE BONDS AND OTHER
205	205	OBLIGATIONS. The district may issue bonds or other obligations
206	206	payable wholly or partly from ad valorem taxes, impact fees,
207	207	revenue, contract payments, grants, or other district money, or any
208	208	combination of those sources, to pay for any authorized district
209	209	purpose.
210	210	Sec. 8100.0502. TAXES FOR BONDS. At the time the district
211	211	issues bonds payable wholly or partly from ad valorem taxes, the
212	212	board shall provide for the annual imposition of a continuing
213	213	direct ad valorem tax, without limit as to rate or amount, while all
214	214	or part of the bonds are outstanding as required and in the manner
215	215	provided by Sections 54.601 and 54.602, Water Code.
216	216	Sec. 8100.0503. BONDS FOR ROAD PROJECTS. At the time of
217	217	issuance, the total principal amount of bonds or other obligations
218	218	issued or incurred to finance road projects and payable from ad
219	219	valorem taxes may not exceed one-fourth of the assessed value of the
220	220	real property in the district.
221	221	SECTION 2. The Howe Municipal Utility District No. 1
222	222	initially includes all the territory contained in the following
223	223	area:
224	224	BEING A TRACT OF LAND LOCATED IN THE JOSEPH HAYHURST SURVEY,
225	225	ABSTRACT No. 530 AND THE JOHN H. MILLER SURVEY, ABSTRACT No. 834,
226	226	GRAYSON COUNTY, TEXAS, BEING ALL OF TRACTS ONE AND TWO OF LAND
227	227	DESCRIBED IN A DEED TO HOWE COMMERCIAL, LTD., RECORDED IN VOLUME
228	228	4046, PAGE 500, DEED RECORDS, GRAYSON COUNTY, TEXAS (D.R.G.C.T.),
229	229	AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
230	230	FOLLOWS:
231	231	BEGINNING AT THE NORTHEAST CORNER OF SAID HOWE TRACT TWO AND
232	232	IN THE WEST RIGHT-OF-WAY LINE OF STATE HIGHWAY No. 5 (S.H. 5), AND
233	233	FROM WHICH A 1/2" IRON ROD FOUND BEARS N 24°17'01" W, 18.68 FEET;
234	234	THENCE ALONG THE EAST LINE OF SAID HOWE TRACT TWO AND THE WEST
235	235	RIGHT-OF-WAY LINE OF SAID S.H. 5 AS FOLLOWS:
236	236	1) S 19°49'23" E, 113.08 FEET TO POINT AT THE BEGINNING OF A
237	237	CURVE TO THE LEFT:
238	238	2) SOUTHEASTERLY, AN ARC LENGTH OF 460.36 FEET ALONG SAID
239	239	CURVE TO THE LEFT, HAVING A RADIUS OF 5779.58 FEET, A DELTA ANGLE OF
240	240	4°33'50", AND A CHORD BEARING OF S 22°02'08" E, 460.24 FEET TO A
241	241	POINT;
242	242	3) S 24°23'23" E, 968.50 FEET TO A POINT AT THE BEGINNING OF A
243	243	CURVE TO THE RIGHT:
244	244	4) SOUTHEASTERLY, AN ARC LENGTH OF 226.37 FEET ALONG SAID
245	245	CURVE TO THE RIGHT, HAVING A RADIUS OF 5679.58 FEET, A DELTA ANGLE
246	246	OF 2°17'01", AND A CHORD BEARING OF S 23°14'53" E, 226.35 FEET TO A
247	247	POINT;
248	248	5) S 22°06'22" E, 3924.23 FEET TO THE SOUTHEAST CORNER OF
249	249	SAID HOWE TRACT TWO;
250	250	THENCE ALONG THE SOUTH LINE OF SAID HOWE TRACT TWO AS FOLLOWS:
251	251	1) S 89°04'19" W, 1125.91 FEET TO A 3/4" IRON PIPE FOUND,
252	252	SAID IRON PIPE BEING THE NORTHWEST CORNER OF A TRACT OF LAND
253	253	DESCRIBED IN A DEED TO OPAL ANDERSON, RECORDED IN VOLUME 2598, PAGE
254	254	482, D.R.G.C.T., AND BEING THE NORTHEAST CORNER OF A TRACT OF LAND
255	255	DESCRIBED IN A DEED TO CLYDE RAY ASKEW AND DOROTHY J. ASKEW
256	256	REVOCABLE LIVING TRUST, RECORDED IN VOLUME 5137, PAGE 478,
257	257	D.R.G.C.T.;
258	258	2) S 88°50'49" W, ALONG THE NORTH LINE OF SAID ASKEW TRACT,
259	259	AT 1213.91 FEET, PASSING THE NORTHEAST CORNER OF A TRACT OF LAND
260	260	DESCRIBED IN A DEED TO HSIUTAO LING, YUN HUA LIN, TZU HSIANG HSU,
261	261	AND CONNIE L. HSU, RECORDED IN VOLUME 4536, PAGE 179, D.R.G.C.T.,
262	262	CONTINUING ALONG THE NORTH LINE OF SAID LIANG, LIN, AND HSU TRACT,
263	263	IN ALL A TOTAL DISTANCE OF 1513.88 FEET TO A 3/4" IRON ROD FOUND,
264	264	SAID IRON ROD BEING THE MOST NORTHERLY NORTHWEST OF SAID LIANG, LIN,
265	265	AND HSU TRACT;
266	266	3) S 88°57'29" W, 1795.46 FEET TO THE SOUTHWEST CORNER OF
267	267	SAID HOWE TRACT TWO AND THE SOUTHEAST CORNER OF SAID HOWE TRACT ONE;
268	268	THENCE S 89°17'02" W, ALONG THE SOUTH LINE OF SAID HOWE TRACT
269	269	ONE, 645.15 FEET TO THE SOUTHWEST CORNER OF SAID HOWE TRACT ONE AND
270	270	BEING IN THE EAST RIGHT-OF-WAY LINE OF INTERSTATE HIGHWAY 75 (I.H.
271	271	75)(A VARIABLE WIDTH RIGHT-OF-WAY), FROM WHICH A RAILROAD SPIKE
272	272	FOUND BEARS S 52°24'30" W, 1.41 FEET;
273	273	THENCE ALONG THE WEST LINE OF SAID HOWE TRACT ONE AND THE EAST
274	274	RIGHT-OF-WAY LINE SAID I.H. 75 AS FOLLOWS:
275	275	1) N 25°42'58" W, 22.05 FEET TO A POINT;
276	276	2) N 41°48'58" W, 180.40 FEET TO A POINT FROM WHICH THE
277	277	REMAINS OF A CONCRETE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT)
278	278	MONUMENT FOUND BEARS S 17°52' E, 0.8 FEET;
279	279	3) N 25°42'58"W, 695.20 FEET TO A POINT FROM WHICH THE
280	280	REMAINS OF A CONCRETE TXDOT MONUMENT FOUND BEARS S 55°25' E, 0.8
281	281	FEET;
282	282	4) N 28°34'58"W, 801.00 FEET TO A POINT FROM WHICH THE
283	283	REMAINS OF A CONCRETE TXDOT MONUMENT FOUND BEARS S 21°07' E, 0.7
284	284	FEET;
285	285	5) N 25°42'57"W, 397.69 FEET TO A 1" IRON PIPE FOUND, SAID
286	286	IRON PIPE FOUND BEING THE SOUTHWEST CORNER OF A TRACT OF LAND
287	287	DESCRIBED IN A DEED TO GEORGE F. MIXON, JR., THE ESTATE OF GEORGE F.
288	288	MIXON, SR., MAUDE L. DIXON, GEORGE F. MIXON, III, CYNTHIA MIXON
289	289	BYNUM, & MARJORIE E. MIXON, RECORDED IN VOLUME 1756, PAGE 789,
290	290	D.R.G.C.T.;
291	291	THENCE N 00°57'05"W, DEPARTING THE EAST RIGHT-OF-WAY LINE OF
292	292	SAID I.H. 75, ALONG A SOUTH LINE OF SAID MIXON TRACT, A DISTANCE OF
293	293	195.61 FEET TO A POINT;
294	294	THENCE N 89°09'02"E, CONTINUING ALONG A SOUTH LINE OF SAID
295	295	MIXON TRACT, 1608.51 FEET TO THE SOUTHEAST CORNER OF SAID MIXON
296	296	TRACT, THE NORTHEAST CORNER OF SAID HOWE TRACT ONE, AND IN THE WEST
297	297	LINE OF SAID HOWE TRACT TWO;
298	298	N 00°45'42"W, ALONG THE WEST LINE OF SAID HOWE TRACT TWO, THE
299	299	EAST LINE OF SAID MIXON TRACT, AND THE EAST LINE OF A TRACT OF LAND
300	300	DESCRIBED IN A DEED AS LOT 5 TO G. WARD PAXTON FLP II, LTD., RECORDED
301	301	IN VOLUME 4896, PAGE 246, D.R.G.C.T., 3253.45 FEET TO THE NORTHWEST
302	302	CORNER OF SAID HOWE TRACT TWO AND BEING THE SOUTHWEST CORNER OF A
303	303	TRACT OF LAND DESCRIBED IN A DEED AS LOT 8 TO SAID G. WARD PAXTON FLP
304	304	II, LTD., RECORDED IN VOLUME 4896, PAGE 246, D.R.G.C.T.;
305	305	N 89°10'53"E, ALONG THE NORTH LINE OF SAID HOWE TRACT TWO,
306	306	2328.21 FEET TO THE PLACE OF BEGINNING AND CONTAINING 468.939 ACRES
307	307	(20,426,981 SQ. FT.) OF LAND, MORE OR LESS.
308	308	SECTION 3. (a) The legal notice of the intention to
309	309	introduce this Act, setting forth the general substance of this
310	310	Act, has been published as provided by law, and the notice and a
311	311	copy of this Act have been furnished to all persons, agencies,
312	312	officials, or entities to which they are required to be furnished
313	313	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
314	314	Government Code.
315	315	(b) The governor, one of the required recipients, has
316	316	submitted the notice and Act to the Texas Commission on
317	317	Environmental Quality.
318	318	(c) The Texas Commission on Environmental Quality has filed
319	319	its recommendations relating to this Act with the governor, the
320	320	lieutenant governor, and the speaker of the house of
321	321	representatives within the required time.
322	322	(d) All requirements of the constitution and laws of this
323	323	state and the rules and procedures of the legislature with respect
324	324	to the notice, introduction, and passage of this Act are fulfilled
325	325	and accomplished.
326	326	SECTION 4. (a) If this Act does not receive a two-thirds
327	327	vote of all the members elected to each house, Subchapter C, Chapter
328	328	8100, Special District Local Laws Code, as added by Section 1 of
329	329	this Act, is amended by adding Section 8100.0307 to read as follows:
330	330	Sec. 8100.0307. NO EMINENT DOMAIN POWER. The district may
331	331	not exercise the power of eminent domain.
332	332	(b) This section is not intended to be an expression of a
333	333	legislative interpretation of the requirements of Section 17(c),
334	334	Article I, Texas Constitution.
335	335	SECTION 5. This Act takes effect immediately if it receives
336	336	a vote of two-thirds of all the members elected to each house, as
337	337	provided by Section 39, Article III, Texas Constitution. If this
338	338	Act does not receive the vote necessary for immediate effect, this
339	339	Act takes effect September 1, 2019.