Texas 2021 - 87th Regular

Texas House Bill HB3436 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3436
	1	+	By: Bell of Montgomery (Senate Sponsor - Kolkhorst) H.B. No. 3436
	2	+	(In the Senate - Received from the House May 17, 2021;
	3	+	May 17, 2021, read first time and referred to Committee on Local
	4	+	Government; May 21, 2021, reported favorably by the following
	5	+	vote: Yeas 7, Nays 0; May 21, 2021, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the creation of the Waller County Municipal Utility
6	12		District No. 40; granting a limited power of eminent domain;
7	13		providing authority to issue bonds; providing authority to impose
8	14		assessments, fees, and taxes.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	17		Code, is amended by adding Chapter 7901 to read as follows:
12	18		CHAPTER 7901. WALLER COUNTY MUNICIPAL UTILITY DISTRICT NO. 40
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 7901.0101. DEFINITIONS. In this chapter:
15	21		(1) "Board" means the district's board of directors.
16	22		(2) "Commission" means the Texas Commission on
17	23		Environmental Quality.
18	24		(3) "Director" means a board member.
19	25		(4) "District" means the Waller County Municipal
20	26		Utility District No. 40.
21	27		Sec. 7901.0102. NATURE OF DISTRICT. The district is a
22	28		municipal utility district created under Section 59, Article XVI,
23	29		Texas Constitution.
24	30		Sec. 7901.0103. CONFIRMATION AND DIRECTOR ELECTION
25	31		REQUIRED. The temporary directors shall hold an election to
26	32		confirm the creation of the district and to elect five permanent
27	33		directors as provided by Section 49.102, Water Code.
28	34		Sec. 7901.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	35		temporary directors may not hold an election under Section
30	36		7901.0103 until each municipality in whose corporate limits or
31	37		extraterritorial jurisdiction the district is located has
32	38		consented by ordinance or resolution to the creation of the
33	39		district and to the inclusion of land in the district.
34	40		Sec. 7901.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
35	41		(a) The district is created to serve a public purpose and benefit.
36	42		(b) The district is created to accomplish the purposes of:
37	43		(1) a municipal utility district as provided by
38	44		general law and Section 59, Article XVI, Texas Constitution; and
39	45		(2) Section 52, Article III, Texas Constitution, that
40	46		relate to the construction, acquisition, improvement, operation,
41	47		or maintenance of macadamized, graveled, or paved roads, or
42	48		improvements, including storm drainage, in aid of those roads.
43	49		Sec. 7901.0106. INITIAL DISTRICT TERRITORY. (a) The
44	50		district is initially composed of the territory described by
45	51		Section 2 of the Act enacting this chapter.
46	52		(b) The boundaries and field notes contained in Section 2 of
47	53		the Act enacting this chapter form a closure. A mistake made in the
48	54		field notes or in copying the field notes in the legislative process
49	55		does not affect the district's:
50	56		(1) organization, existence, or validity;
51	57		(2) right to issue any type of bond for the purposes
52	58		for which the district is created or to pay the principal of and
53	59		interest on a bond;
54	60		(3) right to impose a tax; or
55	61		(4) legality or operation.
56	62		SUBCHAPTER B. BOARD OF DIRECTORS
57	63		Sec. 7901.0201. GOVERNING BODY; TERMS. (a) The district is
58	64		governed by a board of five elected directors.
59	65		(b) Except as provided by Section 7901.0202, directors
60	66		serve staggered four-year terms.
61	67		Sec. 7901.0202. TEMPORARY DIRECTORS. (a) The temporary
62	68		board consists of:
63	69		(1) Amy Hancock;
64	70		(2) Linda Schmidt;
65	71		(3) Grant Beehler;
66	72		(4) Rhonda Emerson; and
67	73		(5) Robin Ross.
68	74		(b) Temporary directors serve until the earlier of:
69	75		(1) the date permanent directors are elected under
70	76		Section 7901.0103; or
71	77		(2) the fourth anniversary of the effective date of
72	78		the Act enacting this chapter.
73	79		(c) If permanent directors have not been elected under
74	80		Section 7901.0103 and the terms of the temporary directors have
75	81		expired, successor temporary directors shall be appointed or
76	82		reappointed as provided by Subsection (d) to serve terms that
77	83		expire on the earlier of:
78	84		(1) the date permanent directors are elected under
79	85		Section 7901.0103; or
80	86		(2) the fourth anniversary of the date of the
81	87		appointment or reappointment.
82	88		(d) If Subsection (c) applies, the owner or owners of a
83	89		majority of the assessed value of the real property in the district
84	90		may submit a petition to the commission requesting that the
85	91		commission appoint as successor temporary directors the five
86	92		persons named in the petition. The commission shall appoint as
87	93		successor temporary directors the five persons named in the
88	94		petition.
89	95		SUBCHAPTER C. POWERS AND DUTIES
90	96		Sec. 7901.0301. GENERAL POWERS AND DUTIES. The district
91	97		has the powers and duties necessary to accomplish the purposes for
92	98		which the district is created.
93	99		Sec. 7901.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
94	100		DUTIES. The district has the powers and duties provided by the
95	101		general law of this state, including Chapters 49 and 54, Water Code,
96	102		applicable to municipal utility districts created under Section 59,
97	103		Article XVI, Texas Constitution.
98	104		Sec. 7901.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
99	105		52, Article III, Texas Constitution, the district may design,
100	106		acquire, construct, finance, issue bonds for, improve, operate,
101	107		maintain, and convey to this state, a county, or a municipality for
102	108		operation and maintenance macadamized, graveled, or paved roads, or
103	109		improvements, including storm drainage, in aid of those roads.
104	110		Sec. 7901.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
105	111		road project must meet all applicable construction standards,
106	112		zoning and subdivision requirements, and regulations of each
107	113		municipality in whose corporate limits or extraterritorial
108	114		jurisdiction the road project is located.
109	115		(b) If a road project is not located in the corporate limits
110	116		or extraterritorial jurisdiction of a municipality, the road
111	117		project must meet all applicable construction standards,
112	118		subdivision requirements, and regulations of each county in which
113	119		the road project is located.
114	120		(c) If the state will maintain and operate the road, the
115	121		Texas Transportation Commission must approve the plans and
116	122		specifications of the road project.
117	123		Sec. 7901.0305. COMPLIANCE WITH MUNICIPAL CONSENT
118	124		ORDINANCE OR RESOLUTION. The district shall comply with all
119	125		applicable requirements of any ordinance or resolution that is
120	126		adopted under Section 54.016 or 54.0165, Water Code, and that
121	127		consents to the creation of the district or to the inclusion of land
122	128		in the district.
123	129		Sec. 7901.0306. DIVISION OF DISTRICT. (a) The district may
124	130		be divided into two or more new districts only if the district:
125	131		(1) has no outstanding bonded debt; and
126	132		(2) is not imposing ad valorem taxes.
127	133		(b) This chapter applies to any new district created by the
128	134		division of the district, and a new district has all the powers and
129	135		duties of the district.
130	136		(c) A new district created by the division of the district
131	137		may not, at the time the new district is created, contain any land
132	138		outside the area described by Section 2 of the Act enacting this
133	139		chapter.
134	140		(d) The board, on its own motion or on receipt of a petition
135	141		signed by the owner or owners of a majority of the assessed value of
136	142		the real property in the district, may adopt an order dividing the
137	143		district.
138	144		(e) The board may adopt an order dividing the district
139	145		before or after the date the board holds an election under Section
140	146		7901.0103 to confirm the district's creation.
141	147		(f) An order dividing the district shall:
142	148		(1) name each new district;
143	149		(2) include the metes and bounds description of the
144	150		territory of each new district;
145	151		(3) appoint temporary directors for each new district;
146	152		and
147	153		(4) provide for the division of assets and liabilities
148	154		between the new districts.
149	155		(g) On or before the 30th day after the date of adoption of
150	156		an order dividing the district, the district shall file the order
151	157		with the commission and record the order in the real property
152	158		records of each county in which the district is located.
153	159		(h) Any new district created by the division of the district
154	160		shall hold a confirmation and directors' election as required by
155	161		Section 7901.0103. If the voters of a new district do not confirm
156	162		the creation of the new district, the assets, obligations,
157	163		territory, and governance of the new district revert to the
158	164		original district.
159	165		(i) If the creation of the new district is confirmed, the
160	166		new district shall provide the election date and results to the
161	167		commission.
162	168		(j) Any new district created by the division of the district
163	169		must hold an election as required by this chapter to obtain voter
164	170		approval before the district may impose a maintenance tax or issue
165	171		bonds payable wholly or partly from ad valorem taxes.
166	172		(k) Municipal consent to the creation of the district and to
167	173		the inclusion of land in the district granted under Section
168	174		7901.0104 acts as municipal consent to the creation of any new
169	175		district created by the division of the district and to the
170	176		inclusion of land in the new district.
171	177		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
172	178		Sec. 7901.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
173	179		The district may issue, without an election, bonds and other
174	180		obligations secured by:
175	181		(1) revenue other than ad valorem taxes; or
176	182		(2) contract payments described by Section 7901.0403.
177	183		(b) The district must hold an election in the manner
178	184		provided by Chapters 49 and 54, Water Code, to obtain voter approval
179	185		before the district may impose an ad valorem tax or issue bonds
180	186		payable from ad valorem taxes.
181	187		(c) The district may not issue bonds payable from ad valorem
182	188		taxes to finance a road project unless the issuance is approved by a
183	189		vote of a two-thirds majority of the district voters voting at an
184	190		election held for that purpose.
185	191		Sec. 7901.0402. OPERATION AND MAINTENANCE TAX. (a) If
186	192		authorized at an election held under Section 7901.0401, the
187	193		district may impose an operation and maintenance tax on taxable
188	194		property in the district in accordance with Section 49.107, Water
189	195		Code.
190	196		(b) The board shall determine the tax rate. The rate may not
191	197		exceed the rate approved at the election.
192	198		Sec. 7901.0403. CONTRACT TAXES. (a) In accordance with
193	199		Section 49.108, Water Code, the district may impose a tax other than
194	200		an operation and maintenance tax and use the revenue derived from
195	201		the tax to make payments under a contract after the provisions of
196	202		the contract have been approved by a majority of the district voters
197	203		voting at an election held for that purpose.
198	204		(b) A contract approved by the district voters may contain a
199	205		provision stating that the contract may be modified or amended by
200	206		the board without further voter approval.
201	207		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
202	208		Sec. 7901.0501. AUTHORITY TO ISSUE BONDS AND OTHER
203	209		OBLIGATIONS. The district may issue bonds or other obligations
204	210		payable wholly or partly from ad valorem taxes, impact fees,
205	211		revenue, contract payments, grants, or other district money, or any
206	212		combination of those sources, to pay for any authorized district
207	213		purpose.
208	214		Sec. 7901.0502. TAXES FOR BONDS. At the time the district
209	215		issues bonds payable wholly or partly from ad valorem taxes, the
210	216		board shall provide for the annual imposition of a continuing
211	217		direct ad valorem tax, without limit as to rate or amount, while all
212	218		or part of the bonds are outstanding as required and in the manner
213	219		provided by Sections 54.601 and 54.602, Water Code.
214	220		Sec. 7901.0503. BONDS FOR ROAD PROJECTS. At the time of
215	221		issuance, the total principal amount of bonds or other obligations
216	222		issued or incurred to finance road projects and payable from ad
217	223		valorem taxes may not exceed one-fourth of the assessed value of the
218	224		real property in the district.
219	225		SECTION 2. Waller County Municipal Utility District No. 40
220	226		initially includes all the territory contained in the following
221	227		area:
222	228		A METES & BOUNDS description of a certain 377.77 acre tract situated
223	229		in the Nathan W. Bush Survey, Abstract No. 76 and B.B.B. & C.R.R.
224	230		Co. Survey, Abstract No. 93 in Waller County, Texas being the
225	231		remainder of a called 590.4 acre tract (remainder tract) conveyed
226	232		by Special Warranty Deed to Sorsby Family Farm, LP recorded in
227	233		Volume 895, Page 208 of the Deed Records of Waller County and all of
228	234		a called 1 acre tract conveyed by Deed to J.B. Sorsby, Jr. recorded
229	235		in Volume 202, Page 245 of the Deed Records of Waller County; said
230	236		377.77 acre tract being more particularly described as follows with
231	237		all bearings based on the Texas Coordinate System of 1983, South
232	238		Central Zone (4204);
233	239		BEGINNING at a set 5/8-inch iron rod (with cap stamped
234	240		"JonesCarter") marking an easterly south corner of the herein
235	241		described subject tract, being common with the southwest corner of
236	242		a called 6.00 acre portion (Tract 1) of said remainder tract
237	243		surveyed on equal date herewith and in the south line of said
238	244		remainder tract and the occupied north right-of-way line of Cameron
239	245		Road (Unknown Width);
240	246		THENCE South 87°22'02" West, along the common line of said remainder
241	247		tract and said occupied north right-of-way line of Cameron Road,
242	248		7964.88 feet to a set 5/8-inch iron rod (with cap stamped
243	249		"JonesCarter") marking a westerly south corner of the herein
244	250		described subject tract, being common with the southeast corner of
245	251		a called 4.00 acre portion (Tract 2) of said remainder tract
246	252		surveyed on equal date herewith and in the south line of said
247	253		remainder tract and the occupied north right-of-way line of Cameron
248	254		Road;
249	255		THENCE North 02°19'35" West, along the east line of said Tract 2,
250	256		418.00 feet to a set 5/8-inch iron rod (with cap stamped
251	257		"JonesCarter") marking an interior southwest corner of the herein
252	258		described subject tract, being common with the northeast corner of
253	259		said Tract 2;
254	260		THENCE South 87°22'02" West, along the north line of said Tract 2,
255	261		416.70 feet to a set 5/8-inch iron rod (with cap stamped
256	262		"JonesCarter") marking a southerly west corner of the herein
257	263		described subject tract, being common with the northwest corner of
258	264		said Tract 2 and in the west line of aforementioned remainder tract
259	265		and occupied east right-of-way line of Flukinger Road (Unknown
260	266		Width);
261	267		THENCE North 02°17'06" West, along the common line of said remainder
262	268		tract and said occupied east right-of-way line of Flukinger Road,
263	269		637.93 feet to a found 8-inch corner fence post marking a northwest
264	270		corner of the herein described subject tract, being common with a
265	271		northwest corner of said remainder tract, the southwest corner of a
266	272		called 110.00 acre tract conveyed to Prairie View A&M University
267	273		(Waller County Central Appraisal District, no deed of record
268	274		found);
269	275		THENCE along the common line of said remainder tract and said 110.00
270	276		acre tract, the following two (2) courses and distances:
271	277		(1) North 87°09'53" East, 1849.82 feet to a found 1/2-inch
272	278		iron pipe;
273	279		(2) North 07°12'03" East, 1192.07 feet to a found 6-inch
274	280		cedar fence post marking a northwest corner of the herein described
275	281		subject tract, being common with the northwest corner of said
276	282		remainder tract, the southwest corner of the remainder of a called
277	283		100 acre tract conveyed by Deed of Gift to Alice Sorsby McGuffie in
278	284		Volume 1037, Page 285 Official Public Records of Waller County and
279	285		Deed of Gift to William Bascom Sorsby recorded in Volume 1037, Page
280	286		289 of the Official Public Records of Waller County and in the east
281	287		line of said 110.00 acre tract;
282	288		THENCE North 86°27'47" East, along the common line of said remainder
283	289		tract and said remainder of a 100 acre tract, passing at 5137.90
284	290		feet, 0.28 feet to the right a found 3/8-inch iron rod, continuing
285	291		in all a total distance of 5970.18 feet to a point-for-corner
286	292		marking the northeast corner of the herein described subject tract,
287	293		being common with the northeast corner of said remainder tract, the
288	294		southeast corner of a called 7.399 acre tract conveyed by Partition
289	295		Deed to Alice Sorsby McGuffie recorded in Volume 334, Page 585 of
290	296		the Deed Records of Waller County and in the west right-of-way line
291	297		of F.M. Highway 362 (called 80-Foot Wide, State Project
292	298		No. R-523-2-3, Volume 117, Page 262 Deed Records of Waller County)
293	299		and from which a found 3/8-inch iron rod bears North 70°16'07" East,
294	300		0.87 feet;
295	301		THENCE South 22°03'23" East, along the common line of said remainder
296	302		tract and said west right-of-way line of F.M. Highway 362, 1845.75
297	303		feet to a set 5/8-inch iron rod (with cap stamped "JonesCarter")
298	304		marking a southerly east corner of the herein described subject
299	305		tract, being common with the northeast corner of aforementioned
300	306		Tract 1 and being in the east line of said remainder tract and said
301	307		west right-of-way line of F.M. Highway 362;
302	308		THENCE South 87°13'41" West, along the north line of said Tract 1,
303	309		416.63 feet to a set 5/8-inch iron rod (with cap stamped
304	310		"JonesCarter") marking an interior southeast corner of the herein
305	311		described subject tract, being common with the northwest corner of
306	312		said Tract 1;
307	313		THENCE South 17°24'25" East, 609.66 feet to the POINT OF BEGINNING,
308	314		CONTAINING 377.77 acres of land in Waller County, Texas as shown on
309	315		Dwg No. 15061 V2 filed in the offices of JonesCarter in College
310	316		Station, Texas.
311	317		SECTION 3. (a) The legal notice of the intention to
312	318		introduce this Act, setting forth the general substance of this
313	319		Act, has been published as provided by law, and the notice and a
314	320		copy of this Act have been furnished to all persons, agencies,
315	321		officials, or entities to which they are required to be furnished
316	322		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
317	323		Government Code.
318	324		(b) The governor, one of the required recipients, has
319	325		submitted the notice and Act to the Texas Commission on
320	326		Environmental Quality.
321	327		(c) The Texas Commission on Environmental Quality has filed
322	328		its recommendations relating to this Act with the governor, the
323	329		lieutenant governor, and the speaker of the house of
324	330		representatives within the required time.
325	331		(d) All requirements of the constitution and laws of this
326	332		state and the rules and procedures of the legislature with respect
327	333		to the notice, introduction, and passage of this Act are fulfilled
328	334		and accomplished.
329	335		SECTION 4. (a) If this Act does not receive a two-thirds
330	336		vote of all the members elected to each house, Subchapter C, Chapter
331	337		7901, Special District Local Laws Code, as added by Section 1 of
332	338		this Act, is amended by adding Section 7901.0307 to read as follows:
333	339		Sec. 7901.0307. NO EMINENT DOMAIN POWER. The district may
334	340		not exercise the power of eminent domain.
335	341		(b) This section is not intended to be an expression of a
336	342		legislative interpretation of the requirements of Section 17(c),
337	343		Article I, Texas Constitution.
338	344		SECTION 5. This Act takes effect immediately if it receives
339	345		a vote of two-thirds of all the members elected to each house, as
340	346		provided by Section 39, Article III, Texas Constitution. If this
341	347		Act does not receive the vote necessary for immediate effect, this
342	348		Act takes effect September 1, 2021.
343		-	______________________________ ______________________________
344		-	President of the Senate Speaker of the House
345		-	I certify that H.B. No. 3436 was passed by the House on May
346		-	14, 2021, by the following vote: Yeas 102, Nays 43, 2 present, not
347		-	voting.
348		-	______________________________
349		-	Chief Clerk of the House
350		-	I certify that H.B. No. 3436 was passed by the Senate on May
351		-	27, 2021, by the following vote: Yeas 30, Nays 1.
352		-	______________________________
353		-	Secretary of the Senate
354		-	APPROVED: _____________________
355		-	Date
356		-	_____________________
357		-	Governor
	349	+	* * * * *