Texas 2019 - 86th Regular

Texas Senate Bill SB2547 Compare Versions

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

Old	New	Differences
1	1	86R23077 AAF-F
2	2	By: Fallon S.B. No. 2547
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Grayson County Municipal Utility
8	8	District No. 2; granting a limited power of eminent domain;
9	9	providing authority to issue bonds; providing authority to impose
10	10	assessments, fees, 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 8033 to read as follows:
14	14	CHAPTER 8033. GRAYSON COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 8033.0101. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the district's board of directors.
18	18	(2) "City" means the City of Gunter, Texas.
19	19	(3) "Commission" means the Texas Commission on
20	20	Environmental Quality.
21	21	(4) "Director" means a board member.
22	22	(5) "District" means the Grayson County Municipal
23	23	Utility District No. 2.
24	24	Sec. 8033.0102. NATURE OF DISTRICT. The district is a
25	25	municipal utility district created under Section 59, Article XVI,
26	26	Texas Constitution.
27	27	Sec. 8033.0103. CONFIRMATION AND DIRECTOR ELECTION
28	28	REQUIRED. The temporary directors shall hold an election to
29	29	confirm the creation of the district and to elect five permanent
30	30	directors as provided by Section 49.102, Water Code.
31	31	Sec. 8033.0104. CONSENT OF MUNICIPALITY REQUIRED. The
32	32	temporary directors may not hold an election under Section
33	33	8033.0103 until each municipality in whose corporate limits or
34	34	extraterritorial jurisdiction the district is located has
35	35	consented by ordinance or resolution to the creation of the
36	36	district and to the inclusion of land in the district.
37	37	Sec. 8033.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
38	38	(a) The district is created to serve a public purpose and benefit.
39	39	(b) The district is created to accomplish the purposes of:
40	40	(1) a municipal utility district as provided by
41	41	general law and Section 59, Article XVI, Texas Constitution; and
42	42	(2) Section 52, Article III, Texas Constitution, that
43	43	relate to the construction, acquisition, improvement, operation,
44	44	or maintenance of macadamized, graveled, or paved roads, or
45	45	improvements, including storm drainage, in aid of those roads.
46	46	Sec. 8033.0106. INITIAL DISTRICT TERRITORY. (a) The
47	47	district is initially composed of the territory described by
48	48	Section 2 of the Act enacting this chapter.
49	49	(b) The boundaries and field notes contained in Section 2 of
50	50	the Act enacting this chapter form a closure. A mistake made in the
51	51	field notes or in copying the field notes in the legislative process
52	52	does not affect the district's:
53	53	(1) organization, existence, or validity;
54	54	(2) right to issue any type of bond for the purposes
55	55	for which the district is created or to pay the principal of and
56	56	interest on a bond;
57	57	(3) right to impose a tax; or
58	58	(4) legality or operation.
59	59	Sec. 8033.0107. EFFECT OF ANNEXATION. Notwithstanding any
60	60	other law, if all of the territory of the district is annexed by the
61	61	city into the city's corporate limits, the district:
62	62	(1) retains all of the district's outstanding debt and
63	63	obligations; and
64	64	(2) is not dissolved.
65	65	SUBCHAPTER B. BOARD OF DIRECTORS
66	66	Sec. 8033.0201. GOVERNING BODY; TERMS. (a) The district is
67	67	governed by a board of five elected directors.
68	68	(b) Except as provided by Section 8033.0202, directors
69	69	serve staggered four-year terms.
70	70	Sec. 8033.0202. TEMPORARY DIRECTORS. (a) On or after
71	71	September 1, 2019, the owner or owners of a majority of the assessed
72	72	value of the real property in the district may submit a petition to
73	73	the commission requesting that the commission appoint as temporary
74	74	directors the five persons named in the petition. The commission
75	75	shall appoint as temporary directors the five persons named in the
76	76	petition.
77	77	(b) Temporary directors serve until the earlier of:
78	78	(1) the date permanent directors are elected under
79	79	Section 8033.0103; or
80	80	(2) September 1, 2023.
81	81	(c) If permanent directors have not been elected under
82	82	Section 8033.0103 and the terms of the temporary directors have
83	83	expired, successor temporary directors shall be appointed or
84	84	reappointed as provided by Subsection (d) to serve terms that
85	85	expire on the earlier of:
86	86	(1) the date permanent directors are elected under
87	87	Section 8033.0103; or
88	88	(2) the fourth anniversary of the date of the
89	89	appointment or reappointment.
90	90	(d) If Subsection (c) applies, the owner or owners of a
91	91	majority of the assessed value of the real property in the district
92	92	may submit a petition to the commission requesting that the
93	93	commission appoint as successor temporary directors the five
94	94	persons named in the petition. The commission shall appoint as
95	95	successor temporary directors the five persons named in the
96	96	petition.
97	97	SUBCHAPTER C. POWERS AND DUTIES
98	98	Sec. 8033.0301. GENERAL POWERS AND DUTIES. The district
99	99	has the powers and duties necessary to accomplish the purposes for
100	100	which the district is created.
101	101	Sec. 8033.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
102	102	DUTIES. (a) The district has the powers and duties provided by the
103	103	general law of this state, including Chapters 49 and 54, Water Code,
104	104	applicable to municipal utility districts created under Section 59,
105	105	Article XVI, Texas Constitution.
106	106	(b) Notwithstanding Subsection (a), the district may not
107	107	act as a retail provider of water or wastewater service.
108	108	(c) The district shall make the district's water and
109	109	wastewater facilities available to an entity holding the applicable
110	110	certificate of public convenience and necessity.
111	111	Sec. 8033.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
112	112	52, Article III, Texas Constitution, the district may design,
113	113	acquire, construct, finance, issue bonds for, improve, operate,
114	114	maintain, and convey to this state, a county, or a municipality for
115	115	operation and maintenance macadamized, graveled, or paved roads, or
116	116	improvements, including storm drainage, in aid of those roads.
117	117	Sec. 8033.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
118	118	road project must meet all applicable construction standards,
119	119	zoning and subdivision requirements, and regulations of each
120	120	municipality in whose corporate limits or extraterritorial
121	121	jurisdiction the road project is located.
122	122	(b) If a road project is not located in the corporate limits
123	123	or extraterritorial jurisdiction of a municipality, the road
124	124	project must meet all applicable construction standards,
125	125	subdivision requirements, and regulations of each county in which
126	126	the road project is located.
127	127	(c) If the state will maintain and operate the road, the
128	128	Texas Transportation Commission must approve the plans and
129	129	specifications of the road project.
130	130	Sec. 8033.0305. MAINTENANCE OF ROADS IN TERRITORY OUTSIDE
131	131	CORPORATE LIMITS OF CITY. If district territory, or a portion of
132	132	district territory, is located outside the corporate limits of the
133	133	city, the district shall maintain any road the district constructs
134	134	located in that territory.
135	135	Sec. 8033.0306. COMPLIANCE WITH MUNICIPAL CONSENT
136	136	ORDINANCE OR RESOLUTION. The district shall comply with all
137	137	applicable requirements of any ordinance or resolution that is
138	138	adopted under Section 54.016 or 54.0165, Water Code, and that
139	139	consents to the creation of the district or to the inclusion of land
140	140	in the district.
141	141	Sec. 8033.0307. DIVISION OF DISTRICT. (a) The district may
142	142	be divided into two or more new districts only if the district:
143	143	(1) has no outstanding bonded debt; and
144	144	(2) is not imposing ad valorem taxes.
145	145	(b) This chapter applies to any new district created by the
146	146	division of the district, and a new district has all the powers and
147	147	duties of the district.
148	148	(c) Any new district created by the division of the district
149	149	may not, at the time the new district is created, contain any land
150	150	outside the area described by Section 2 of the Act enacting this
151	151	chapter.
152	152	(d) The board, on its own motion or on receipt of a petition
153	153	signed by the owner or owners of a majority of the assessed value of
154	154	the real property in the district, may adopt an order dividing the
155	155	district.
156	156	(e) The board may adopt an order dividing the district
157	157	before or after the date the board holds an election under Section
158	158	8033.0103 to confirm the district's creation.
159	159	(f) An order dividing the district shall:
160	160	(1) name each new district;
161	161	(2) include the metes and bounds description of the
162	162	territory of each new district;
163	163	(3) appoint temporary directors for each new district;
164	164	and
165	165	(4) provide for the division of assets and liabilities
166	166	between or among the new districts.
167	167	(g) On or before the 30th day after the date of adoption of
168	168	an order dividing the district, the district shall file the order
169	169	with the commission and record the order in the real property
170	170	records of each county in which the district is located.
171	171	(h) Any new district created by the division of the district
172	172	shall hold a confirmation and directors' election as required by
173	173	Section 8033.0103. If the voters of a new district do not confirm
174	174	the creation of the new district, the assets, obligations,
175	175	territory, and governance of the new district revert to the
176	176	original district.
177	177	(i) Municipal consent to the creation of the district and to
178	178	the inclusion of land in the district granted under Section
179	179	8033.0104 acts as municipal consent to the creation of any new
180	180	district created by the division of the district and to the
181	181	inclusion of land in the new district.
182	182	(j) Any new district created by the division of the district
183	183	must hold an election as required by this chapter to obtain voter
184	184	approval before the district may impose a maintenance tax or issue
185	185	bonds payable wholly or partly from ad valorem taxes.
186	186	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
187	187	Sec. 8033.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
188	188	The district may issue, without an election, bonds and other
189	189	obligations secured by:
190	190	(1) revenue other than ad valorem taxes; or
191	191	(2) contract payments described by Section 8033.0403.
192	192	(b) The district must hold an election in the manner
193	193	provided by Chapters 49 and 54, Water Code, to obtain voter approval
194	194	before the district may impose an ad valorem tax or issue bonds
195	195	payable from ad valorem taxes.
196	196	(c) The district may not issue bonds payable from ad valorem
197	197	taxes to finance a road project unless the issuance is approved by a
198	198	vote of a two-thirds majority of the district voters voting at an
199	199	election held for that purpose.
200	200	Sec. 8033.0402. OPERATION AND MAINTENANCE TAX. (a) If
201	201	authorized at an election held under Section 8033.0401, the
202	202	district may impose an operation and maintenance tax on taxable
203	203	property in the district in accordance with Section 49.107, Water
204	204	Code.
205	205	(b) The board shall determine the tax rate. The rate may not
206	206	exceed the rate approved at the election.
207	207	Sec. 8033.0403. CONTRACT TAXES. (a) In accordance with
208	208	Section 49.108, Water Code, the district may impose a tax other than
209	209	an operation and maintenance tax and use the revenue derived from
210	210	the tax to make payments under a contract after the provisions of
211	211	the contract have been approved by a majority of the district voters
212	212	voting at an election held for that purpose.
213	213	(b) A contract approved by the district voters may contain a
214	214	provision stating that the contract may be modified or amended by
215	215	the board without further voter approval.
216	216	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
217	217	Sec. 8033.0501. AUTHORITY TO ISSUE BONDS AND OTHER
218	218	OBLIGATIONS. The district may issue bonds or other obligations
219	219	payable wholly or partly from ad valorem taxes, impact fees,
220	220	revenue, contract payments, grants, or other district money, or any
221	221	combination of those sources, to pay for any authorized district
222	222	purpose.
223	223	Sec. 8033.0502. TAXES FOR BONDS. At the time the district
224	224	issues bonds payable wholly or partly from ad valorem taxes, the
225	225	board shall provide for the annual imposition of a continuing
226	226	direct ad valorem tax, without limit as to rate or amount, while all
227	227	or part of the bonds are outstanding as required and in the manner
228	228	provided by Sections 54.601 and 54.602, Water Code.
229	229	Sec. 8033.0503. BONDS FOR ROAD PROJECTS. At the time of
230	230	issuance, the total principal amount of bonds or other obligations
231	231	issued or incurred to finance road projects and payable from ad
232	232	valorem taxes may not exceed one-fourth of the assessed value of the
233	233	real property in the district.
234	234	SECTION 2. The Grayson County Municipal Utility District
235	235	No. 2 initially includes all the territory contained in the
236	236	following area:
237	237	All that certain tract or parcel of land situated in the Charles
238	238	Mason Survey, Abstract Number 858, the Fisher A. Hammon Survey,
239	239	Abstract Number 604, and the Thomas Toby Survey, Abstract Number
240	240	1256, County of Grayson, State of Texas; said tract being part of a
241	241	called 102.5 acre tract as described in Tract 10, and all of a
242	242	called 208.5 acre tract as described in Tract 33 in Substitute
243	243	Trustee's Deed to John Hancock Mutual Life Insurance Co., dated 07
244	244	July 1992, and Recorded in Volume 2220 Page 297 of the Deed Records
245	245	of the County of Grayson, State of Texas, and being more fully
246	246	described as follows:
247	247	BEGINNING for the southwest corner of the tract being described
248	248	herein at a set 3/4 inch Rod, said rod being the southwest corner of
249	249	said Tract 33, and the southeast corner of a called 150 acre tract
250	250	as shown by Deed to Nelson Bunker Hunt Trust, dated 01 August 1969,
251	251	and Recorded in Volume 1140 Page 141 of said Deed Records, said rod
252	252	also being in the center line of Berend Road (a gravel surfaced
253	253	public road), said rod also being on the south line of Grayson
254	254	County, and the north line of Denton County;
255	255	Thence: North 00 degrees 45 minutes 21 seconds West, and passing the
256	256	north line of said road and continuing on said course for a total
257	257	distance of 4639.84 feet to a net 3/4 inch Rod for the northwest
258	258	corner of said Tract 22 and in the center line of Martin Road (a
259	259	gravel surfaced public road);
260	260	Thence: North 88 degrees 58 minutes 52 seconds East a distance of
261	261	380.65 for a corner of this tract;
262	262	Thence: North 89 degrees 02 minutes 42 seconds East with the north
263	263	line of said Tract 33 and 10, and the center line of said road. a
264	264	distance of 2013.74 feet to a found 1/2 inch Steel Square Tubing for
265	265	the northeast corner of this tract;
266	266	Thence: South 00 degrees 54 minutes 04 seconds East, a distance of
267	267	4690.18 feet to a found 1/2 inch Steel Square Tubing in the center
268	268	line of said Berend Road;
269	269	Thence: South 89 degrees 45 minutes 28 seconds West. with the center
270	270	line of said road. a distance of 628.46 feet to a found 3/4 inch Rod
271	271	for a corner;
272	272	Thence: North 00 degrees 06 minutes 09 seconds West. a distance of
273	273	18.02 feet to set 3/4 inch Rod for a corner on the north line of said
274	274	road;
275	275	Thence: South 89 degrees 31 minutes 51 seconds West. with the north
276	276	line of said road. a distance of 866.39 feet to set 3/4 inch Rod for
277	277	a corner;
278	278	Thence: South 00 degrees 00 minutes 32 seconds West. a distance of
279	279	14.59 feet to a set 3/4 inch Rod for a corner of this tract;
280	280	Thence: South 89 degrees 45 minutes 28 seconds West. with the center
281	281	line of said Berend road. a distance of 911.48 feet to the POINT OF
282	282	BEGINNING and containing 257.294 Acres of land.
283	283	SECTION 3. (a) The legal notice of the intention to
284	284	introduce this Act, setting forth the general substance of this
285	285	Act, has been published as provided by law, and the notice and a
286	286	copy of this Act have been furnished to all persons, agencies,
287	287	officials, or entities to which they are required to be furnished
288	288	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
289	289	Government Code.
290	290	(b) The governor, one of the required recipients, has
291	291	submitted the notice and Act to the Texas Commission on
292	292	Environmental Quality.
293	293	(c) The Texas Commission on Environmental Quality has filed
294	294	its recommendations relating to this Act with the governor, the
295	295	lieutenant governor, and the speaker of the house of
296	296	representatives within the required time.
297	297	(d) All requirements of the constitution and laws of this
298	298	state and the rules and procedures of the legislature with respect
299	299	to the notice, introduction, and passage of this Act are fulfilled
300	300	and accomplished.
301	301	SECTION 4. (a) If this Act does not receive a two-thirds
302	302	vote of all the members elected to each house, Subchapter C, Chapter
303	303	8033, Special District Local Laws Code, as added by Section 1 of
304	304	this Act, is amended by adding Section 8033.0308 to read as follows:
305	305	Sec. 8033.0308. NO EMINENT DOMAIN POWER. The district may
306	306	not exercise the power of eminent domain.
307	307	(b) This section is not intended to be an expression of a
308	308	legislative interpretation of the requirements of Section 17(c),
309	309	Article I, Texas Constitution.
310	310	SECTION 5. This Act takes effect September 1, 2019.