Texas 2021 - 87th Regular

Texas House Bill HB4623 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Leman (Senate Sponsor - Kolkhorst) H.B. No. 4623
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 22, 2021, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 7, Nays 0;
6		-	May 22, 2021, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 4623 By: Eckhardt
	1	+	87R20921 SGM-F
	2	+	By: Leman H.B. No. 4623
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to the creation of the Austin County Municipal Utility
14	8		District No. 1; granting a limited power of eminent domain;
15	9		providing authority to issue bonds; providing authority to impose
16	10		assessments, fees, and taxes.
17	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18	12		SECTION 1. Subtitle F, Title 6, Special District Local Laws
19	13		Code, is amended by adding Chapter 7913A to read as follows:
20	14		CHAPTER 7913A. AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
21	15		SUBCHAPTER A. GENERAL PROVISIONS
22	16		Sec. 7913A.0101. DEFINITIONS. In this chapter:
23	17		(1) "Board" means the district's board of directors.
24		-	(2) "Commission" means the Texas Commission on
	18	+	(2) "City" means the City of Sealy, Texas.
	19	+	(3) "Commission" means the Texas Commission on
25	20		Environmental Quality.
26		-	(3) "Director" means a board member.
27		-	(4) "District" means the Austin County Municipal
	21	+	(4) "Director" means a board member.
	22	+	(5) "District" means the Austin County Municipal
28	23		Utility District No. 1.
29	24		Sec. 7913A.0102. NATURE OF DISTRICT. The district is a
30	25		municipal utility district created under Section 59, Article XVI,
31	26		Texas Constitution.
32	27		Sec. 7913A.0103. CONFIRMATION AND DIRECTOR ELECTION
33	28		REQUIRED. The temporary directors shall hold an election to
34	29		confirm the creation of the district and to elect five permanent
35	30		directors as provided by Section 49.102, Water Code.
36	31		Sec. 7913A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
37	32		temporary directors may not hold an election under Section
38	33		7913A.0103 until each municipality in whose corporate limits or
39	34		extraterritorial jurisdiction the district is located has
40	35		consented by ordinance or resolution to the creation of the
41	36		district and to the inclusion of land in the district.
42	37		Sec. 7913A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
43	38		(a) The district is created to serve a public purpose and benefit.
44	39		(b) The district is created to accomplish the purposes of:
45	40		(1) a municipal utility district as provided by
46	41		general law and Section 59, Article XVI, Texas Constitution; and
47	42		(2) Section 52, Article III, Texas Constitution, that
48	43		relate to the construction, acquisition, improvement, operation,
49	44		or maintenance of macadamized, graveled, or paved roads, or
50	45		improvements, including storm drainage, in aid of those roads.
51	46		Sec. 7913A.0106. INITIAL DISTRICT TERRITORY. (a) The
52	47		district is initially composed of the territory described by
53	48		Section 2 of the Act enacting this chapter.
54	49		(b) The boundaries and field notes contained in Section 2 of
55	50		the Act enacting this chapter form a closure. A mistake made in the
56	51		field notes or in copying the field notes in the legislative process
57	52		does not affect the district's:
58	53		(1) organization, existence, or validity;
59	54		(2) right to issue any type of bond for the purposes
60	55		for which the district is created or to pay the principal of and
61	56		interest on a bond;
62	57		(3) right to impose a tax; or
63	58		(4) legality or operation.
64	59		SUBCHAPTER B. BOARD OF DIRECTORS
65	60		Sec. 7913A.0201. GOVERNING BODY; TERMS. (a) The district
66	61		is governed by a board of five elected directors.
67	62		(b) Except as provided by Section 7913A.0202, directors
68	63		serve staggered four-year terms.
69		-	Sec. 7913A.0202. TEMPORARY DIRECTORS. (a) ~~On or after the~~
70		-	~~effective date~~ of ~~the Act enacting this chapter, the owner or owners~~
71		-	~~of a majority of the assessed value of the real property in the~~
72		-	~~district may submit a petition to the commission requesting that~~
73		-	~~the commission appoint as temporary directors the five persons~~
74		-	~~named in the petition. The commission shall appoint as temporary~~
75		-	~~directors the five persons named in the petition~~.
	64	+	Sec. 7913A.0202. TEMPORARY DIRECTORS. (a) The temporary
	65	+	board consists of:
	66	+	(1) Aaron Horvitz;
	67	+	(2) Onyinyechi Muilenburg;
	68	+	(3) Christine Harris;
	69	+	(4) Regan John O'Connor; and
	70	+	(5) Carol J Wooldridge.
76	71		(b) Temporary directors serve until the earlier of:
77	72		(1) the date permanent directors are elected under
78	73		Section 7913A.0103; or
79		-	(2) January 1, 2026.
	74	+	(2) the fourth anniversary of the effective date of
	75	+	the Act enacting this chapter.
80	76		(c) If permanent directors have not been elected under
81	77		Section 7913A.0103 and the terms of the temporary directors have
82	78		expired, successor temporary directors shall be appointed or
83	79		reappointed as provided by Subsection (d) to serve terms that
84	80		expire on the earlier of:
85	81		(1) the date permanent directors are elected under
86	82		Section 7913A.0103; or
87	83		(2) the fourth anniversary of the date of the
88	84		appointment or reappointment.
89	85		(d) If Subsection (c) applies, the owner or owners of a
90	86		majority of the assessed value of the real property in the district
91	87		may submit a petition to the commission requesting that the
92	88		commission appoint as successor temporary directors the five
93	89		persons named in the petition. The commission shall appoint as
94	90		successor temporary directors the five persons named in the
95	91		petition.
	92	+	Sec. 7913A.0203. DESIGNATED BOARD MEETING LOCATION. (a)
	93	+	The board shall designate a meeting place inside the district for
	94	+	conducting the meetings of the board. The meeting place designated
	95	+	may be a private residence or office, provided that, in the order
	96	+	designating the meeting place, the board declares the place where
	97	+	the meeting is held to be a public place and invites the public to
	98	+	attend any meeting of the board held in that place.
	99	+	(b) If the board establishes that no suitable place exists
	100	+	for meeting inside the district, the board may designate a meeting
	101	+	place outside the district. The board shall give notice of the
	102	+	location of a meeting place outside the district by:
	103	+	(1) filing a copy of the resolution designating the
	104	+	location and a justification of why the meeting will not be held in
	105	+	the district or within 10 miles of the boundary of the district, if
	106	+	applicable, with the commission; and
	107	+	(2) publishing notice of the location in a newspaper
	108	+	of general circulation in the district.
	109	+	(c) If the board changes the location of a meeting place
	110	+	outside the district, the board shall give notice of the change in
	111	+	the manner described by Subsection (b).
96	112		SUBCHAPTER C. POWERS AND DUTIES
97	113		Sec. 7913A.0301. GENERAL POWERS AND DUTIES. The district
98	114		has the powers and duties necessary to accomplish the purposes for
99	115		which the district is created.
100	116		Sec. 7913A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
101	117		DUTIES. The district has the powers and duties provided by the
102	118		general law of this state, including Chapters 49 and 54, Water Code,
103	119		applicable to municipal utility districts created under Section 59,
104	120		Article XVI, Texas Constitution.
105	121		Sec. 7913A.0303. AUTHORITY FOR ROAD PROJECTS. Under
106	122		Section 52, Article III, Texas Constitution, the district may
107	123		design, acquire, construct, finance, issue bonds for, improve,
108	124		operate, maintain, and convey to this state, a county, or a
109	125		municipality for operation and maintenance macadamized, graveled,
110	126		or paved roads, or improvements, including storm drainage, in aid
111	127		of those roads.
112	128		Sec. 7913A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
113	129		road project must meet all applicable construction standards,
114	130		zoning and subdivision requirements, and regulations of each
115	131		municipality in whose corporate limits or extraterritorial
116	132		jurisdiction the road project is located.
117	133		(b) If a road project is not located in the corporate limits
118	134		or extraterritorial jurisdiction of a municipality, the road
119	135		project must meet all applicable construction standards,
120	136		subdivision requirements, and regulations of each county in which
121	137		the road project is located.
122	138		(c) If the state will maintain and operate the road, the
123	139		Texas Transportation Commission must approve the plans and
124	140		specifications of the road project.
125	141		Sec. 7913A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
126	142		ORDINANCE OR RESOLUTION. The district shall comply with all
127	143		applicable requirements of any ordinance or resolution that is
128	144		adopted under Section 54.016 or 54.0165, Water Code, and that
129	145		consents to the creation of the district or to the inclusion of land
130	146		in the district.
	147	+	Sec. 7913A.0306. EFFECT OF ANNEXATION. Notwithstanding any
	148	+	other law, if all or any part of the territory of the district is
	149	+	annexed by the city into the city's corporate limits, the district
	150	+	retains all of the district's outstanding debt and obligations and
	151	+	is not dissolved.
131	152		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
132	153		Sec. 7913A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
133	154		The district may issue, without an election, bonds and other
134	155		obligations secured by:
135	156		(1) revenue other than ad valorem taxes; or
136	157		(2) contract payments described by Section
137	158		7913A.0403.
138	159		(b) The district must hold an election in the manner
139	160		provided by Chapters 49 and 54, Water Code, to obtain voter approval
140	161		before the district may impose an ad valorem tax or issue bonds
141	162		payable from ad valorem taxes.
142	163		(c) The district may not issue bonds payable from ad valorem
143	164		taxes to finance a road project unless the issuance is approved by a
144	165		vote of a two-thirds majority of the district voters voting at an
145	166		election held for that purpose.
146	167		Sec. 7913A.0402. OPERATION AND MAINTENANCE TAX. (a) If
147	168		authorized at an election held under Section 7913A.0401, the
148	169		district may impose an operation and maintenance tax on taxable
149	170		property in the district in accordance with Section 49.107, Water
150	171		Code.
151	172		(b) The board shall determine the tax rate. The rate may not
152	173		exceed the rate approved at the election.
153	174		Sec. 7913A.0403. CONTRACT TAXES. (a) In accordance with
154	175		Section 49.108, Water Code, the district may impose a tax other than
155	176		an operation and maintenance tax and use the revenue derived from
156	177		the tax to make payments under a contract after the provisions of
157	178		the contract have been approved by a majority of the district voters
158	179		voting at an election held for that purpose.
159	180		(b) A contract approved by the district voters may contain a
160	181		provision stating that the contract may be modified or amended by
161	182		the board without further voter approval.
162	183		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
163	184		Sec. 7913A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
164	185		OBLIGATIONS. The district may issue bonds or other obligations
165	186		payable wholly or partly from ad valorem taxes, impact fees,
166	187		revenue, contract payments, grants, or other district money, or any
167	188		combination of those sources, to pay for any authorized district
168	189		purpose.
169	190		Sec. 7913A.0502. TAXES FOR BONDS. At the time the district
170	191		issues bonds payable wholly or partly from ad valorem taxes, the
171	192		board shall provide for the annual imposition of a continuing
172	193		direct ad valorem tax, without limit as to rate or amount, while all
173	194		or part of the bonds are outstanding as required and in the manner
174	195		provided by Sections 54.601 and 54.602, Water Code.
175	196		Sec. 7913A.0503. BONDS FOR ROAD PROJECTS. At the time of
176	197		issuance, the total principal amount of bonds or other obligations
177	198		issued or incurred to finance road projects and payable from ad
178	199		valorem taxes may not exceed one-fourth of the assessed value of the
179	200		real property in the district.
180	201		SECTION 2. The Austin County Municipal Utility District No.
181	202		1 initially includes all the territory contained in the following
182	203		area:
183	204		A 38.118 acre, or 1,660,419 square feet more or less, tract of land,
184	205		being a portion of that residue of called 38.143 acre tract of land
185	206		conveyed to David Cryan as described in a deed recorded in Clerk's
186	207		File No. 153921 of the Official Records of Austin County, Texas,
187	208		situated in the San Felipe de Austin Survey, Abstract 5, in the City
188	209		of Sealy, Austin County, Texas. Said 38.118 acre tract being more
189	210		fully described as follows, with bearings based on the Texas
190	211		Coordinate System of 1983, South Central Zone from the North
191	212		American Datum of 1983 (NA2011) epoch 2010.00:
192	213		BEGINNING: At an iron rod with aluminum cap found in the
193	214		centerline of Harrison Road (30 feet wide) as recorded under Volume
194	215		Y, Page 318 of the Deed Records of Austin County, Texas and the
195	216		northeast corner of said 38.143 acre tract and for the northeast
196	217		corner of the herein described tract and being on the west
197	218		right-of-way line of Schmidt Road (60 feet wide) a called 3.946
198	219		acres of land as conveyed to the City of Sealy as recorded under
199	220		Clerk's File No. 025841 of the official Records of Austin County,
200	221		Texas;
201	222		THENCE: S 42°42'31" W, along and with the said west right-of-way
202	223		line, a distance of 2,864.13 feet to a point to a 1/2 inch iron pipe
203	224		with cap stamped "Brown & Gay" found for the southeast corner of the
204	225		herein described tract and being on the northeast line of a called
205	226		237.88 acre tract as described in a deed to Wal-Mart Stores East, LP
206	227		recorded under Clerk's File No. 031749 of the Official Records of
207	228		Austin County, Texas;
208	229		THENCE: N 47°18'41" W, along and with said northeast line, a
209	230		distance of 578.43 feet to an iron rod with a yellow cap stamped
210	231		"Pate-Dawson" to be set for the southwest corner of the herein
211	232		described tract and the southeast corner of a called 70.00 acres of
212	233		land conveyed to David Cryan as recorded in Clerk's File No. 126232
213	234		of the Official Records of Austin County, Texas;
214	235		THENCE: N 42°39'39" E, along with said north line, a distance of a
215	236		distance of 2,865.17 feet to a 1/2 inch iron rod found in the said
216	237		centerline of Harrison Road and for the northwest corner of the
217	238		herein described tract and the northeast corner of said 70.00
218	239		acres;
219	240		THENCE: S 47°12'30" E, along said centerline of Harrison Road, a
220	241		distance of 580.82 feet to the POINT OF BEGINNING, and containing
221	242		38.118 acres in the City of Houston, Harris County, Texas.
222	243		A 118.535 acre, or 5,163,385 square feet more or less, tract of
223	244		land, being a portion of that residue of called 140.000 acre tract
224	245		of land conveyed to Ranch County of Texas, Inc. as described in a
225	246		deed recorded in Clerk's File No. 081189 of the Official Records of
226	247		Austin County, Texas, and a portion of Tract 1, a residue of a
227	248		called 55.3 acres of land conveyed to David Cryan as described in a
228	249		deed recorded in Clerk's File No. 164420 of the Official Records of
229	250		Austin County, Texas, and all of Tract 2, a called 28.172 acres of
230	251		land conveyed to David Cryan as described in a deed recorded in
231	252		Clerk's File No. 153921 of the Official Records of Austin County,
232	253		Texas, and all of Tract 5, a called 6.1259 acres of land conveyed to
233	254		David Cryan as described in a deed recorded in Clerk's File
234	255		No. 164420 of the Official Records of Austin County, Texas, and all
235	256		of Tract 4, a called 6.1259 acres of land conveyed to David Cryan as
236	257		described in a deed recorded in Clerk's File No. 164420 of the
237	258		Official Records of Austin County, Texas, and all of Tract 3, a
238	259		called 6.1259 acres of land conveyed to David Cryan as described in
239	260		a deed recorded in Clerk's File No. 164420 of the Official Records
240	261		of Austin County, Texas, and all of Tract 2, a called 6.1259 acres
241	262		of land conveyed to David Cryan as described in a deed recorded in
242	263		Clerk's File No. 164420 of the Official Records of Austin County,
243	264		Texas, and all of Parcel 1, a called 5.452 acres of land conveyed to
244	265		David Cryan as described in a deed recorded in Clerk's File
245	266		No. 191010 of the Official Records of Austin County, Texas, and all
246	267		of Parcel 2, a called 5.350 acres of land conveyed to David Cryan as
247	268		described in a deed recorded in Clerk's File No. 191010 of the
248	269		Official Records of Austin County, Texas, situated in the San
249	270		Felipe de Austin Survey, Abstract 5, in the City of Sealy, Austin
250	271		County, Texas. Said 118.535 acre tract being more fully described
251	272		as follows, with bearings based on the Texas Coordinate System of
252	273		1983, South Central Zone from the North American Datum of 1983
253	274		(NA2011) epoch 2010.00:
254	275		BEGINNING: At an iron rod with aluminum cap found on the west
255	276		right-of-way line of F.M. Highway No. 3013 (width varies) and the
256	277		northeast corner of a called 38.69 acre tract of land conveyed to
257	278		Jinsung T.E.C. Texas, L.L.C. Texas, L.L.C. as described in a deed
258	279		recorded in Clerk's File No. 126413 of the Official Records of
259	280		Austin County, Texas, and for the most northerly southeast corner
260	281		of the herein described tract;
261	282		THENCE: N 47°17'47" W, a distance of 950.10 feet to a 5/8 inch iron
262	283		rod found for an interior corner of the herein described tract and
263	284		being the northwest corner of said 38.69 acres and on the east line
264	285		of said Tract 1, a residue of a called 55.3 acres;
265	286		THENCE: S 42°39'37" W, along the common line of said Tract 1, a
266	287		residue of a called 55.3 acres and said 38.69 acres, a distance of
267	288		1,774.20 feet to an iron rod with aluminum cap found for the
268	289		southeast corner of said Tract 1, a residue of a called 55.3 acres
269	290		and the southwest corner of said 38.69 acres and for the most
270	291		southerly southeast corner of the herein described tract and on the
271	292		northerly line of a called 6.362 acres of land conveyed to the City
272	293		of Sealy, Texas as recorded in Clerk's File No. 031750 of the
273	294		Official Records of Austin County, Texas;
274	295		THENCE: N 47°18'41" W, along with said north line, a distance of
275	296		1,607.38 feet to an iron rod with aluminum cap found on the east
276	297		right-of-way line to Schmidt Road (60 feet wide) a called 3.946
277	298		acres of land as conveyed to the City of Sealy as recorded under
278	299		Clerk's File No. 025841 of the official Records of Austin County,
279	300		Texas, and the southwest corner said Tract 2 of called 28.172 acres
280	301		and the southwest corner of the herein described tract;
281	302		THENCE: N 42°42'31" E, along the said east right-of-way line and
282	303		along said Tract 2 of called 28.172 acres, a distance of 2,864.02
283	304		feet to an iron rod with aluminum cap found in the centerline of
284	305		Harrison Road (30 feet wide) as recorded under Volume Y, Page 318 of
285	306		Deed Records of Austin County, Texas and the northwest corner of
286	307		said Tract 2 of called 28.172 acres and the northwest corner of the
287	308		herein described tract;
288	309		THENCE: S 47°12'30" E, along and with said centerline of Harrison
289	310		Road, a distance of 1,921.18 feet to a Mag Nail found for the most
290	311		northerly northeast corner of the herein described tract and for
291	312		the northeast corner of said Parcel 2 and the northwest corner of
292	313		said Residue of called 140.000 acres;
293	314		THENCE: S 42°38'14" W, along and with the east line of said Parcel
294	315		2, a distance of 736.53 feet to an iron rod with aluminum cap found
295	316		for an interior corner of the herein described tract and for the
296	317		southeast corner of said Parcel 2;
297	318		THENCE: S 47°18'33" E, departing said east line and along and with
298	319		the north line of said Parcel 1, a distance of 633.63 feet to an iron
299	320		rod with aluminum cap found on the west right-of-way line of said
300	321		F.M. No. 3013 and the most southerly northeast corner of the herein
301	322		described tract;
302	323		THENCE: S 42°39'57" W, a distance of 350.05 feet to the POINT OF
303	324		BEGINNING, and containing 118.535 acres in the City of Houston,
304	325		Harris County, Texas.
305	326		SECTION 3. (a) The legal notice of the intention to
306	327		introduce this Act, setting forth the general substance of this
307	328		Act, has been published as provided by law, and the notice and a
308	329		copy of this Act have been furnished to all persons, agencies,
309	330		officials, or entities to which they are required to be furnished
310	331		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
311	332		Government Code.
312	333		(b) The governor, one of the required recipients, has
313	334		submitted the notice and Act to the Texas Commission on
314	335		Environmental Quality.
315	336		(c) The Texas Commission on Environmental Quality has filed
316	337		its recommendations relating to this Act with the governor, the
317	338		lieutenant governor, and the speaker of the house of
318	339		representatives within the required time.
319	340		(d) All requirements of the constitution and laws of this
320	341		state and the rules and procedures of the legislature with respect
321	342		to the notice, introduction, and passage of this Act are fulfilled
322	343		and accomplished.
323	344		SECTION 4. (a) If this Act does not receive a two-thirds
324	345		vote of all the members elected to each house, Subchapter C, Chapter
325	346		7913A, Special District Local Laws Code, as added by Section 1 of
326		-	this Act, is amended by adding Section 7913A.~~0306~~ to read as
	347	+	this Act, is amended by adding Section 7913A.0307 to read as
327	348		follows:
328		-	Sec. 7913A.~~0306~~. NO EMINENT DOMAIN POWER. The district may
	349	+	Sec. 7913A.0307. NO EMINENT DOMAIN POWER. The district may
329	350		not exercise the power of eminent domain.
330	351		(b) This section is not intended to be an expression of a
331	352		legislative interpretation of the requirements of Section 17(c),
332	353		Article I, Texas Constitution.
333		-	SECTION 5. This Act takes effect January 1, 2022.
334		-	* * * * *
	354	+	SECTION 5. This Act takes effect immediately if it receives
	355	+	a vote of two-thirds of all the members elected to each house, as
	356	+	provided by Section 39, Article III, Texas Constitution. If this
	357	+	Act does not receive the vote necessary for immediate effect, this
	358	+	Act takes effect September 1, 2021.