Texas 2023 88th Regular

Texas House Bill HB5327 House Committee Report / Bill

Filed 05/03/2023

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                    88R13253 LRM-F
 By: Kuempel H.B. No. 5327


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the Guadalupe County Municipal Utility
 District No. 8; granting a limited power of eminent domain;
 providing authority to issue bonds; providing authority to impose
 assessments, fees, and taxes.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle F, Title 6, Special District Local Laws
 Code, is amended by adding Chapter 7976A to read as follows:
 CHAPTER 7976A. GUADALUPE COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 7976A.0101.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "Commission" means the Texas Commission on
 Environmental Quality.
 (3)  "Director" means a board member.
 (4)  "District" means the Guadalupe County Municipal
 Utility District No. 8.
 Sec. 7976A.0102.  NATURE OF DISTRICT. The district is a
 municipal utility district created under Section 59, Article XVI,
 Texas Constitution.
 Sec. 7976A.0103.  CONFIRMATION AND DIRECTOR ELECTION
 REQUIRED. The temporary directors shall hold an election to
 confirm the creation of the district and to elect five permanent
 directors as provided by Section 49.102, Water Code.
 Sec. 7976A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
 temporary directors may not hold an election under Section
 7976A.0103 until each municipality in whose corporate limits or
 extraterritorial jurisdiction the district is located has
 consented by ordinance or resolution to the creation of the
 district and to the inclusion of land in the district, as required
 by applicable law.
 Sec. 7976A.0105.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
 (a) The district is created to serve a public purpose and benefit.
 (b)  The district is created to accomplish the purposes of:
 (1)  a municipal utility district as provided by
 general law and Section 59, Article XVI, Texas Constitution; and
 (2)  Section 52, Article III, Texas Constitution, that
 relate to the construction, acquisition, improvement, operation,
 or maintenance of macadamized, graveled, or paved roads, or
 improvements, including storm drainage, in aid of those roads.
 Sec. 7976A.0106.  INITIAL DISTRICT TERRITORY. (a) The
 district is initially composed of the territory described by
 Section 2 of the Act enacting this chapter.
 (b)  The boundaries and field notes contained in Section 2 of
 the Act enacting this chapter form a closure. A mistake made in the
 field notes or in copying the field notes in the legislative process
 does not affect the district's:
 (1)  organization, existence, or validity;
 (2)  right to issue any type of bond for the purposes
 for which the district is created or to pay the principal of and
 interest on a bond;
 (3)  right to impose a tax; or
 (4)  legality or operation.
 SUBCHAPTER B. BOARD OF DIRECTORS
 Sec. 7976A.0201.  GOVERNING BODY; TERMS. (a) The district
 is governed by a board of five elected directors.
 (b)  Except as provided by Section 7976A.0202, directors
 serve staggered four-year terms.
 Sec. 7976A.0202.  TEMPORARY DIRECTORS.  (a)  On or after the
 effective date of the Act enacting this chapter, the owner or owners
 of a majority of the assessed value of the real property in the
 district may submit a petition to the commission requesting that
 the commission appoint as temporary directors the five persons
 named in the petition.  The commission shall appoint as temporary
 directors the five persons named in the petition.
 (b)  Temporary directors serve until the earlier of:
 (1)  the date permanent directors are elected under
 Section 7976A.0103; or
 (2)  the fourth anniversary of the effective date of
 the Act enacting this chapter.
 (c)  If permanent directors have not been elected under
 Section 7976A.0103 and the terms of the temporary directors have
 expired, successor temporary directors shall be appointed or
 reappointed as provided by Subsection (d) to serve terms that
 expire on the earlier of:
 (1)  the date permanent directors are elected under
 Section 7976A.0103; or
 (2)  the fourth anniversary of the date of the
 appointment or reappointment.
 (d)  If Subsection (c) applies, the owner or owners of a
 majority of the assessed value of the real property in the district
 may submit a petition to the commission requesting that the
 commission appoint as successor temporary directors the five
 persons named in the petition. The commission shall appoint as
 successor temporary directors the five persons named in the
 petition.
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 7976A.0301.  GENERAL POWERS AND DUTIES. The district
 has the powers and duties necessary to accomplish the purposes for
 which the district is created.
 Sec. 7976A.0302.  MUNICIPAL UTILITY DISTRICT POWERS AND
 DUTIES. The district has the powers and duties provided by the
 general law of this state, including Chapters 49 and 54, Water Code,
 applicable to municipal utility districts created under Section 59,
 Article XVI, Texas Constitution.
 Sec. 7976A.0303.  AUTHORITY FOR ROAD PROJECTS. Under
 Section 52, Article III, Texas Constitution, the district may
 design, acquire, construct, finance, issue bonds for, improve,
 operate, maintain, and convey to this state, a county, or a
 municipality for operation and maintenance macadamized, graveled,
 or paved roads, or improvements, including storm drainage, in aid
 of those roads.
 Sec. 7976A.0304.  ROAD STANDARDS AND REQUIREMENTS. (a) A
 road project must meet all applicable construction standards,
 zoning and subdivision requirements, and regulations of each
 municipality in whose corporate limits or extraterritorial
 jurisdiction the road project is located.
 (b)  If a road project is not located in the corporate limits
 or extraterritorial jurisdiction of a municipality, the road
 project must meet all applicable construction standards,
 subdivision requirements, and regulations of each county in which
 the road project is located.
 (c)  If the state will maintain and operate the road, the
 Texas Transportation Commission must approve the plans and
 specifications of the road project.
 Sec. 7976A.0305.  COMPLIANCE WITH MUNICIPAL CONSENT
 ORDINANCE OR RESOLUTION. The district shall comply with all
 applicable requirements of any ordinance or resolution that is
 adopted under Section 54.016 or 54.0165, Water Code, and that
 consents to the creation of the district or to the inclusion of land
 in the district.
 Sec. 7976A.0306.  DIVISION OF DISTRICT. (a) The board, on
 its own motion or on receipt of a petition signed by the owner or
 owners of a majority of the assessed value of the real property in
 the district, may adopt an order dividing the district.
 (b)  An order dividing a district may create one or more new
 districts and may provide for the continuation of the district.
 (c)  An order dividing the district shall:
 (1)  name any new district;
 (2)  include the metes and bounds description of the
 territory of each of the districts;
 (3)  appoint temporary directors for any new district;
 and
 (4)  provide for the division of assets and liabilities
 between the districts.
 (d)  The board may adopt an order dividing the district
 before or after the date the board holds an election to confirm the
 district's creation.
 (e)  The district may be divided only if the district:
 (1)  has never issued any bonds; and
 (2)  is not imposing ad valorem taxes.
 (f)   A new district created by the division of the district
 may not, at the time the new district is created, contain any land
 outside the area described by Section 2 of the Act enacting this
 chapter.
 (g)  On or before the 30th day after the date of adoption of
 an order dividing the district, the district shall file the order
 with the commission and record the order in the real property
 records of each county in which the district is located.
 (h)  This chapter applies to any new district created by the
 division of the district, and a new district has all the powers and
 duties of the district.
 (i)  A new district created by the division of the district
 shall hold a confirmation and directors' election.
 (j)  If the creation of the new district is confirmed, the
 new district shall provide the election date and results to the
 commission.
 (k)  A new district created by the division of the district
 must hold an election as required by this chapter to obtain voter
 approval before the district may impose a maintenance tax or issue
 bonds payable wholly or partly from ad valorem taxes.
 (l)  The district may continue to rely on confirmation,
 directors', bond, or tax elections held prior to the division.
 (m)  Municipal consent to the creation of the district and to
 the inclusion of land in the district acts as municipal consent to
 the creation of any new district created by the division of the
 district and to the inclusion of land in the new district.
 SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
 Sec. 7976A.0401.  ELECTIONS REGARDING TAXES OR BONDS. (a)
 The district may issue, without an election, bonds and other
 obligations secured by:
 (1)  revenue other than ad valorem taxes; or
 (2)  contract payments described by Section
 7976A.0403.
 (b)  The district must hold an election in the manner
 provided by Chapters 49 and 54, Water Code, to obtain voter approval
 before the district may impose an ad valorem tax or issue bonds
 payable from ad valorem taxes.
 (c)  The district may not issue bonds payable from ad valorem
 taxes to finance a road project unless the issuance is approved by a
 vote of a two-thirds majority of the district voters voting at an
 election held for that purpose.
 Sec. 7976A.0402.  OPERATION AND MAINTENANCE TAX. (a) If
 authorized at an election held under Section 7976A.0401, the
 district may impose an operation and maintenance tax on taxable
 property in the district in accordance with Section 49.107, Water
 Code.
 (b)  The board shall determine the tax rate. The rate may not
 exceed the rate approved at the election.
 Sec. 7976A.0403.  CONTRACT TAXES. (a) In accordance with
 Section 49.108, Water Code, the district may impose a tax other than
 an operation and maintenance tax and use the revenue derived from
 the tax to make payments under a contract after the provisions of
 the contract have been approved by a majority of the district voters
 voting at an election held for that purpose.
 (b)  A contract approved by the district voters may contain a
 provision stating that the contract may be modified or amended by
 the board without further voter approval.
 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
 Sec. 7976A.0501.  AUTHORITY TO ISSUE BONDS AND OTHER
 OBLIGATIONS. The district may issue bonds or other obligations
 payable wholly or partly from ad valorem taxes, impact fees,
 revenue, contract payments, grants, or other district money, or any
 combination of those sources, to pay for any authorized district
 purpose.
 Sec. 7976A.0502.  TAXES FOR BONDS. At the time the district
 issues bonds payable wholly or partly from ad valorem taxes, the
 board shall provide for the annual imposition of a continuing
 direct ad valorem tax, without limit as to rate or amount, while all
 or part of the bonds are outstanding as required and in the manner
 provided by Sections 54.601 and 54.602, Water Code.
 Sec. 7976A.0503.  BONDS FOR ROAD PROJECTS. At the time of
 issuance, the total principal amount of bonds or other obligations
 issued or incurred to finance road projects and payable from ad
 valorem taxes may not exceed one-fourth of the assessed value of the
 real property in the district.
 SECTION 2.  The Guadalupe County Municipal Utility District
 No. 8 initially includes all the territory contained in the
 following area:
 Being 248.5 acres of land situated in the Josias Randolph
 Survey, Abstract No. 276 and the James Hodges Survey, Abstract
 No. 148, Guadalupe County, Texas; said 248.5 acres being comprised
 of a portion of a called 159.45 acre tract of land in the name of
 NESH 7 Hills, LP as recorded in a General Warranty Deed in Document
 Number 202299019360, Official Public Records of Guadalupe County
 (O.P.R.G.C.) as Exhibit "A", and all of a called 91.04 acre tract of
 land in the name of NESH 7 Hills, LP as recorded in said General
 Warranty Deed as Exhibit "B"; said 248.5 acre tract being more
 particularly described by metes and bounds as follows (all bearings
 are referenced to the Texas Coordinate System, North American Datum
 of 1983 (NAD83), South Central Zone);
 Beginning at the most northerly corner of said 159.45 acre
 tract, being the northwesterly corner of a called 39.86 acre tract
 of land recorded in the name of Robert Kidnew (no deed information
 found), also being on the southerly Right-of-Way (R.O.W.) line of
 Interstate Highway 10 (IH 10);
 Thence, with the common line between said 159.45 acre tract
 and said 39.86 acre tract, South 41 degrees 33 minutes 50 seconds
 East, a distance of 2,224.03 feet to the most easterly corner of
 said 159.45 acre tract, being the most northerly corner of
 aforesaid 91.04 acre tract, the southerly corner of said 39.86 acre
 tract and the most westerly corner of a called 51.89 acre tract
 recorded in the names of Juan and Jose Castillo in Volume 4185, Page
 934, O.P.R.G.C.;
 Thence, with the common line between said 91.04 acre tract
 and said 51.89 acre tract, the following four (4) courses and
 distances:
 1.  South 40 degrees 49 minutes 54 seconds East, a distance
 of 716.44 feet;
 2.  South 46 degrees 49 minutes 19 seconds West, a distance
 of 22.34 feet;
 3.  South 40 degrees 51 minutes 37 seconds East, a distance
 of 869.00 feet;
 4.  North 48 degrees 34 minutes 46 seconds East, a distance
 of 246.36 feet to the northeasterly corner of said 91.04 acre tract,
 being on the westerly R.O.W. line of Dart Field Road;
 Thence, with the easterly line of said 91.04 acre tract and
 the westerly R.O.W. line of said Dart Field Road, South 03 degrees
 26 minutes 57 seconds West, a distance of 1,141.98 feet to the
 southeasterly corner of said 91.04 acre tract, being the most
 easterly corner of a called 62.46 acre tract of land recorded in the
 name of Mary Mergele (no deed information found);
 Thence, with the common line between said 91.04 acre tract
 and said 62.46 acre tract, the following three (3) courses and
 distances;
 1.  South 60 degrees 28 minutes 33 seconds West, a distance
 of 1,052.86 feet;
 2.  North 23 degrees 36 minutes 29 seconds West, a distance
 of 640.11 feet;
 3.  South 48 degrees 26 minutes 08 seconds West, a distance
 of 487.65 feet to an interior corner of said 91.04 acre tract, being
 the southeasterly corner of a called 60.00 acre tract of land
 recorded in the name of Richard Mergele in Document Number
 202199016163, O.P.R.G.C.;
 Thence, with the common line between said 91.04 acre tract
 and said 60.00 acre tract, North 40 degrees 54 minutes 12 seconds
 West, a distance of 1,549.99 feet the northwesterly corner of said
 91.04 acre tract, being the most northerly corner of said 60.00 acre
 tract, also being on the southerly line of aforesaid 159.45 acre
 tract;
 Thence, with the common line between said 159.45 acre tract
 and said 60.00 acre tract, South 47 degrees 58 minutes 18 seconds
 West, a distance of 1,692.34 feet to the most southerly corner of
 said 159.45 acre tract, being the westerly corner of said 60.00 acre
 tract, also being on the easterly line of a called 141.59 acre tract
 of land recorded in the name of Abner Ussery in Volume 133, Page
 381, O.P.R.G.C.;
 Thence, with the common line between said 159.45 acre tract
 and said 141.59 acre tract, North 39 degrees 48 minutes 06 seconds
 West, a distance of 1,303.20 feet to the most westerly corner of
 said 159.45 acre tract, being the southwesterly corner of a called
 67.01 acre tract of land recorded in the name of Abner Ussery (no
 deed information found);
 Thence, with the common line between said 159.45 acre tract
 and said 67.01 acre tract, the following two (2) courses and
 distances;
 North 48 degrees 35 minutes 44 seconds East, a distance of
 1,783.49 feet;
 North 40 degrees 37 minutes 01 second West, 1,244.08 feet to
 the southerly line of a called 2.13 acre tract conveyed to Catrina
 Lewis in Warranty Deed recorded in Document Number 201899027872,
 O.P.R.G.C.
 Thence, with the southeasterly line of said 2.13 acre tract
 the following four (4) courses;
 1.  North 38 degrees 19 minutes 00 seconds East, a distance
 of 136.58 feet;
 2.  North 04 degrees 38 minutes 55 seconds East, a distance
 of 150.74 feet;
 3.  North 29 degrees 03 minutes 42 seconds West, a distance
 of 137.41 feet;
 4.  North 00 degrees 08 minutes 43 seconds West, a distance
 of 96.17 feet to the northerly line of said 159.45 acre tract and
 the northeasterly corner of said 2.13 acre tract, also being on the
 southerly line of aforesaid IH 10;
 Thence, with the northerly line of said 159.45 acre tract and
 the southerly R.O.W. line of said IH 10, North 72 degrees 09 minutes
 51 seconds East, a distance of 1,548.01 feet to the Point of
 Beginning and containing 248.5 acres of land.
 SECTION 3.  (a) The legal notice of the intention to
 introduce this Act, setting forth the general substance of this
 Act, has been published as provided by law, and the notice and a
 copy of this Act have been furnished to all persons, agencies,
 officials, or entities to which they are required to be furnished
 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
 Government Code.
 (b)  The governor, one of the required recipients, has
 submitted the notice and Act to the Texas Commission on
 Environmental Quality.
 (c)  The Texas Commission on Environmental Quality has filed
 its recommendations relating to this Act with the governor, the
 lieutenant governor, and the speaker of the house of
 representatives within the required time.
 (d)  All requirements of the constitution and laws of this
 state and the rules and procedures of the legislature with respect
 to the notice, introduction, and passage of this Act are fulfilled
 and accomplished.
 SECTION 4.  (a)  If this Act does not receive a two-thirds
 vote of all the members elected to each house, Subchapter C, Chapter
 7976A, Special District Local Laws Code, as added by Section 1 of
 this Act, is amended by adding Section 7976A.0307 to read as
 follows:
 Sec. 7976A.0307.  NO EMINENT DOMAIN POWER. The district may
 not exercise the power of eminent domain.
 (b)  This section is not intended to be an expression of a
 legislative interpretation of the requirements of Section 17(c),
 Article I, Texas Constitution.
 SECTION 5.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2023.