Texas 2021 - 87th Regular

Texas House Bill HB4589 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 4589
	1	+	By: Sanford (Senate Sponsor - Springer) H.B. No. 4589
	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 LC Municipal Utility District No. 1
6	12		of Collin County; granting a limited power of eminent domain;
7	13		providing authority to issue bonds; providing authority to impose
8	14		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 7908A to read as follows:
12	18		CHAPTER 7908A. LC MUNICIPAL UTILITY DISTRICT NO. 1 OF COLLIN COUNTY
13	19		SUBCHAPTER A. GENERAL PROVISIONS
14	20		Sec. 7908A.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 LC Municipal Utility District
20	26		No. 1 of Collin County.
21	27		Sec. 7908A.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. 7908A.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. 7908A.0104. CONDITIONS PRECEDENT TO CONFIRMATION
29	35		ELECTION. (a) The temporary directors may not hold an election
30	36		under Section 7908A.0103 until:
31	37		(1) each municipality in whose corporate limits or
32	38		extraterritorial jurisdiction the district is located has
33	39		consented by ordinance or resolution to the creation of the
34	40		district and to the inclusion of land in the district; and
35	41		(2) the district has entered into a contract with a
36	42		municipality, Collin County, or another entity:
37	43		(A) for adequate supplemental police, fire,
38	44		emergency, and animal control services for the district; and
39	45		(B) that is approved by the Commissioners Court
40	46		of Collin County under Subsection (c).
41	47		(b) A contract under Subsection (a) may include a provision
42	48		that the contract takes effect only on the approval of the
43	49		Commissioners Court of Collin County and the voters in the district
44	50		voting in an election held for that purpose.
45	51		(c) The Commissioners Court of Collin County shall review a
46	52		contract under Subsection (a) and evaluate the supplemental police,
47	53		fire, emergency, and animal control services provided in the
48	54		contract. If the commissioners court determines that the contract
49	55		provides adequate services, the commissioners court shall adopt a
50	56		resolution stating that the contract has met the requirements of
51	57		Subsection (a).
52	58		Sec. 7908A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
53	59		(a) The district is created to serve a public purpose and benefit.
54	60		(b) The district is created to accomplish the purposes of:
55	61		(1) a municipal utility district as provided by
56	62		general law and Section 59, Article XVI, Texas Constitution; and
57	63		(2) Section 52, Article III, Texas Constitution, that
58	64		relate to the construction, acquisition, improvement, operation,
59	65		or maintenance of macadamized, graveled, or paved roads, or
60	66		improvements, including storm drainage, in aid of those roads.
61	67		Sec. 7908A.0106. INITIAL DISTRICT TERRITORY. (a) The
62	68		district is initially composed of the territory described by
63	69		Section 2 of the Act enacting this chapter.
64	70		(b) The boundaries and field notes contained in Section 2 of
65	71		the Act enacting this chapter form a closure. A mistake made in the
66	72		field notes or in copying the field notes in the legislative process
67	73		does not affect the district's:
68	74		(1) organization, existence, or validity;
69	75		(2) right to issue any type of bond for the purposes
70	76		for which the district is created or to pay the principal of and
71	77		interest on a bond;
72	78		(3) right to impose a tax; or
73	79		(4) legality or operation.
74	80		SUBCHAPTER B. BOARD OF DIRECTORS
75	81		Sec. 7908A.0201. GOVERNING BODY; TERMS. (a) The district
76	82		is governed by a board of five elected directors.
77	83		(b) Except as provided by Section 7908A.0202, directors
78	84		serve staggered four-year terms.
79	85		Sec. 7908A.0202. TEMPORARY DIRECTORS. (a) The temporary
80	86		board consists of:
81	87		(1) Shelby Wilson;
82	88		(2) Morris Layton;
83	89		(3) Roxane Lanclos;
84	90		(4) Tim Hunt; and
85	91		(5) Doug Hurst.
86	92		(b) Temporary directors serve until the earlier of:
87	93		(1) the date permanent directors are elected under
88	94		Section 7908A.0103; or
89	95		(2) the fourth anniversary of the effective date of
90	96		the Act enacting this chapter.
91	97		(c) If permanent directors have not been elected under
92	98		Section 7908A.0103 and the terms of the temporary directors have
93	99		expired, successor temporary directors shall be appointed or
94	100		reappointed as provided by Subsection (d) to serve terms that
95	101		expire on the earlier of:
96	102		(1) the date permanent directors are elected under
97	103		Section 7908A.0103; or
98	104		(2) the fourth anniversary of the date of the
99	105		appointment or reappointment.
100	106		(d) If Subsection (c) applies, the owner or owners of a
101	107		majority of the assessed value of the real property in the district
102	108		may submit a petition to the commission requesting that the
103	109		commission appoint as successor temporary directors the five
104	110		persons named in the petition. The commission shall appoint as
105	111		successor temporary directors the five persons named in the
106	112		petition.
107	113		SUBCHAPTER C. POWERS AND DUTIES
108	114		Sec. 7908A.0301. GENERAL POWERS AND DUTIES. The district
109	115		has the powers and duties necessary to accomplish the purposes for
110	116		which the district is created.
111	117		Sec. 7908A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
112	118		DUTIES. The district has the powers and duties provided by the
113	119		general law of this state, including Chapters 49 and 54, Water Code,
114	120		applicable to municipal utility districts created under Section 59,
115	121		Article XVI, Texas Constitution.
116	122		Sec. 7908A.0303. AUTHORITY FOR ROAD PROJECTS. Under
117	123		Section 52, Article III, Texas Constitution, the district may
118	124		design, acquire, construct, finance, issue bonds for, improve,
119	125		operate, maintain, and convey to this state, a county, or a
120	126		municipality for operation and maintenance macadamized, graveled,
121	127		or paved roads, or improvements, including storm drainage, in aid
122	128		of those roads.
123	129		Sec. 7908A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
124	130		road project must meet all applicable construction standards,
125	131		zoning and subdivision requirements, and regulations of each
126	132		municipality in whose corporate limits or extraterritorial
127	133		jurisdiction the road project is located.
128	134		(b) If a road project is not located in the corporate limits
129	135		or extraterritorial jurisdiction of a municipality, the road
130	136		project must meet all applicable construction standards,
131	137		subdivision requirements, and regulations of each county in which
132	138		the road project is located.
133	139		(c) If the state will maintain and operate the road, the
134	140		Texas Transportation Commission must approve the plans and
135	141		specifications of the road project.
136	142		Sec. 7908A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
137	143		ORDINANCE OR RESOLUTION. The district shall comply with all
138	144		applicable requirements of any ordinance or resolution that is
139	145		adopted under Section 54.016 or 54.0165, Water Code, and that
140	146		consents to the creation of the district or to the inclusion of land
141	147		in the district.
142	148		Sec. 7908A.0306. DIVISION OF DISTRICT. (a) The district
143	149		may be divided into two or more new districts only if the district:
144	150		(1) has no outstanding bonded debt; and
145	151		(2) is not imposing ad valorem taxes.
146	152		(b) This chapter applies to any new district created by
147	153		division of the district, and a new district has all the powers and
148	154		duties of the district.
149	155		(c) A new district created by the division of the district
150	156		may not, at the time the new district is created, contain any land
151	157		outside the area described by Section 2 of the Act enacting this
152	158		chapter.
153	159		(d) The board, on its own motion or on receipt of a petition
154	160		signed by the owner or owners of a majority of the assessed value of
155	161		the real property in the district, may adopt an order dividing the
156	162		district.
157	163		(e) The board may adopt an order dividing the district
158	164		before or after the date the board holds an election under Section
159	165		7908A.0103 to confirm the district's creation.
160	166		(f) An order dividing the district shall:
161	167		(1) name each new district;
162	168		(2) include the metes and bounds description of the
163	169		territory of each new district;
164	170		(3) appoint temporary directors for each new district;
165	171		and
166	172		(4) provide for the division of assets and liabilities
167	173		between the new districts.
168	174		(g) On or before the 30th day after the date of adoption of
169	175		an order dividing the district, the district shall file the order
170	176		with the commission and record the order in the real property
171	177		records of each county in which the district is located.
172	178		(h) A new district created by the division of the district
173	179		shall hold a confirmation and directors' election as required by
174	180		Section 7908A.0103. If the voters of a new district do not confirm
175	181		the creation of the new district, the assets, obligations,
176	182		territory, and governance of the new district revert to the
177	183		original district.
178	184		(i) If the creation of the new district is confirmed, the
179	185		new district shall provide the election date and results to the
180	186		commission.
181	187		(j) A new district created by the division of the district
182	188		must hold an election as required by this chapter to obtain voter
183	189		approval before the district may impose a maintenance tax or issue
184	190		bonds payable wholly or partly from ad valorem taxes.
185	191		(k) Municipal consent to the creation of the district and to
186	192		the inclusion of land in the district granted under Section
187	193		7908A.0104 acts as municipal consent to the creation of any new
188	194		district created by the division of the district and to the
189	195		inclusion of land in the new district.
190	196		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
191	197		Sec. 7908A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
192	198		The district may issue, without an election, bonds and other
193	199		obligations secured by:
194	200		(1) revenue other than ad valorem taxes; or
195	201		(2) contract payments described by Section
196	202		7908A.0403.
197	203		(b) The district must hold an election in the manner
198	204		provided by Chapters 49 and 54, Water Code, to obtain voter approval
199	205		before the district may impose an ad valorem tax or issue bonds
200	206		payable from ad valorem taxes.
201	207		(c) The district may not issue bonds payable from ad valorem
202	208		taxes to finance a road project unless the issuance is approved by a
203	209		vote of a two-thirds majority of the district voters voting at an
204	210		election held for that purpose.
205	211		Sec. 7908A.0402. OPERATION AND MAINTENANCE TAX. (a) If
206	212		authorized at an election held under Section 7908A.0401, the
207	213		district may impose an operation and maintenance tax on taxable
208	214		property in the district in accordance with Section 49.107, Water
209	215		Code.
210	216		(b) The board shall determine the tax rate. The rate may not
211	217		exceed the rate approved at the election.
212	218		Sec. 7908A.0403. CONTRACT TAXES. (a) In accordance with
213	219		Section 49.108, Water Code, the district may impose a tax other than
214	220		an operation and maintenance tax and use the revenue derived from
215	221		the tax to make payments under a contract after the provisions of
216	222		the contract have been approved by a majority of the district voters
217	223		voting at an election held for that purpose.
218	224		(b) A contract approved by the district voters may contain a
219	225		provision stating that the contract may be modified or amended by
220	226		the board without further voter approval.
221	227		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
222	228		Sec. 7908A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
223	229		OBLIGATIONS. The district may issue bonds or other obligations
224	230		payable wholly or partly from ad valorem taxes, impact fees,
225	231		revenue, contract payments, grants, or other district money, or any
226	232		combination of those sources, to pay for any authorized district
227	233		purpose.
228	234		Sec. 7908A.0502. TAXES FOR BONDS. At the time the district
229	235		issues bonds payable wholly or partly from ad valorem taxes, the
230	236		board shall provide for the annual imposition of a continuing
231	237		direct ad valorem tax, without limit as to rate or amount, while all
232	238		or part of the bonds are outstanding as required and in the manner
233	239		provided by Sections 54.601 and 54.602, Water Code.
234	240		Sec. 7908A.0503. BONDS FOR ROAD PROJECTS. At the time of
235	241		issuance, the total principal amount of bonds or other obligations
236	242		issued or incurred to finance road projects and payable from ad
237	243		valorem taxes may not exceed one-fourth of the assessed value of the
238	244		real property in the district.
239	245		SECTION 2. The LC Municipal Utility District No. 1 of Collin
240	246		County initially includes all the territory contained in the
241	247		following area:
242	248		BEING 109.980-acres located in the E.M. Woods Survey, Abstract
243	249		No. 960, Collin County Texas, being all of that called 110.034 acre
244	250		parcel described in General Warranty Deed to Kayasa Family, LTD, as
245	251		recorded in Instrument No. 201501140004480, Official Public
246	252		Records Collin County Texas, (O.P.R.C.C.T.) and being more
247	253		particularly described as follows:
248	254		BEGINNING at a Mag Nail found in the center of County Road 400 (CR
249	255		400) (a prescriptive roadway) for the northwest corner of said
250	256		Kayasa Family parcel, same being northeast corner of Tract 1 as
251	257		described in Deed in Lieu of Foreclosure to George W. Bowen recorded
252	258		in Instrument No. 20090330000362370, O.P.R.C.C.T.;
253	259		THENCE S 88'38'34" E with the center of said CR 400, a distance of
254	260		1,454.42 feet to a found 1/2-inch iron rod for the northeast corner
255	261		of the herein described tract, and the northwest corner of that
256	262		parcel described in Warranty Deed to Texas-New Mexico Power Company
257	263		recorded in Instrument No. 20070105000026530, O.P.R.C.C.T.;
258	264		THENCE leaving said roadway and with the east line of the herein
259	265		described tract as follows:
260	266		S 01'20'43" E, a distance of 871.17 feet to a found iron rod
261	267		with cap marked "BGT" for the southwest corner of said
262	268		Texas-New Mexico tract, the northwest corner of that parcel
263	269		described in Special Warranty Deed to Suncrest Princeton
264	270		Partners, Inc. recorded in Instrument No. 20180215000185810,
265	271		O.P.R.C.C.T.;
266	272		S 02'09'00" W, a distance of 1,053.31 feet to a found 1/2-inch
267	273		iron rod with cap marked "JBI" for the southwest corner of
268	274		said Suncrest Princeton Partners tract and the northwest
269	275		corner of that parcel described in Executrix's Special
270	276		Warranty Deed to Testamentary Trust to Dan Dowell Credit
271	277		Trust as recorded in Instrument No. 20150105000011710,
272	278		O.P.R.C.C.T.;
273	279		S 02'05'02" W, a distance of 1,147.48 feet to a found 3/8-inch
274	280		iron rod, for the southeast corner of the herein described
275	281		tract;
276	282		THENCE N 88'47'50" W with a northerly line of said Dowell tract, a
277	283		distance of 1,747.94 feet to a found 3/8-inch iron rod for the
278	284		northwest corner of said Dowell tract on the east line of that
279	285		parcel described in Special Warranty Deed to Shultz-Branch, Ltd.
280	286		recorded in instrument No. 20121229001661240, O.P.R.C.C.T.;
281	287		THENCE N 01'59'43" E with said east line, 986.49 feet to the
282	288		northeast corner of said Shultz-Branch parcel, being on the south
283	289		line of Tract 2 as described in Deed in Lieu of Foreclosure to
284	290		George W. Brown recorded in Instrument No. 20090330000362370,
285	291		O.P.R.C.C.T.;
286	292		THENCE S 89'01'19" E with said south line, a distance of 296.61 feet
287	293		to a found 1/2-inch iron rod for the southeast corner of said Tract
288	294		2;
289	295		THENCE N 00'38'32" E with the east line of said Tract 2 and the
290	296		aforesaid Tract 1, a distance of 2,087.82 feet to the POINT OF
291	297		BEGINNING, and containing 109.980 acres, more or less.
292	298		SECTION 3. (a) The legal notice of the intention to
293	299		introduce this Act, setting forth the general substance of this
294	300		Act, has been published as provided by law, and the notice and a
295	301		copy of this Act have been furnished to all persons, agencies,
296	302		officials, or entities to which they are required to be furnished
297	303		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
298	304		Government Code.
299	305		(b) The governor, one of the required recipients, has
300	306		submitted the notice and Act to the Texas Commission on
301	307		Environmental Quality.
302	308		(c) The Texas Commission on Environmental Quality has filed
303	309		its recommendations relating to this Act with the governor, the
304	310		lieutenant governor, and the speaker of the house of
305	311		representatives within the required time.
306	312		(d) All requirements of the constitution and laws of this
307	313		state and the rules and procedures of the legislature with respect
308	314		to the notice, introduction, and passage of this Act are fulfilled
309	315		and accomplished.
310	316		SECTION 4. (a) If this Act does not receive a two-thirds
311	317		vote of all the members elected to each house, Subchapter C, Chapter
312	318		7908A, Special District Local Laws Code, as added by Section 1 of
313	319		this Act, is amended by adding Section 7908A.0307 to read as
314	320		follows:
315	321		Sec. 7908A.0307. NO EMINENT DOMAIN POWER. The district may
316	322		not exercise the power of eminent domain.
317	323		(b) This section is not intended to be an expression of a
318	324		legislative interpretation of the requirements of Section 17(c),
319	325		Article I, Texas Constitution.
320	326		SECTION 5. This Act takes effect immediately if it receives
321	327		a vote of two-thirds of all the members elected to each house, as
322	328		provided by Section 39, Article III, Texas Constitution. If this
323	329		Act does not receive the vote necessary for immediate effect, this
324	330		Act takes effect September 1, 2021.
325		-	______________________________ ______________________________
326		-	President of the Senate Speaker of the House
327		-	I certify that H.B. No. 4589 was passed by the House on May
328		-	14, 2021, by the following vote: Yeas 106, Nays 39, 2 present, not
329		-	voting.
330		-	______________________________
331		-	Chief Clerk of the House
332		-	I certify that H.B. No. 4589 was passed by the Senate on May
333		-	27, 2021, by the following vote: Yeas 30, Nays 1.
334		-	______________________________
335		-	Secretary of the Senate
336		-	APPROVED: _____________________
337		-	Date
338		-	_____________________
339		-	Governor
	331	+	* * * * *