Texas 2023 - 88th Regular

Texas House Bill HB5343 Compare Versions

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Version 2 (New)

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1	1	H.B. No. 5343
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Wharton County Municipal Utility
6	6	District No. 1; granting a limited power of eminent domain;
7	7	providing authority to issue bonds; providing authority to impose
8	8	assessments, fees, and taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	11	Code, is amended by adding Chapter 7980A to read as follows:
12	12	CHAPTER 7980A. WHARTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 7980A.0101. DEFINITIONS. In this chapter:
15	15	(1) "Board" means the district's board of directors.
16	16	(2) "Commission" means the Texas Commission on
17	17	Environmental Quality.
18	18	(3) "Director" means a board member.
19	19	(4) "District" means the Wharton County Municipal
20	20	Utility District No. 1.
21	21	Sec. 7980A.0102. NATURE OF DISTRICT. The district is a
22	22	municipal utility district created under Section 59, Article XVI,
23	23	Texas Constitution.
24	24	Sec. 7980A.0103. CONFIRMATION AND DIRECTOR ELECTION
25	25	REQUIRED. The temporary directors shall hold an election to
26	26	confirm the creation of the district and to elect five permanent
27	27	directors as provided by Section 49.102, Water Code.
28	28	Sec. 7980A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	29	temporary directors may not hold an election under Section
30	30	7980A.0103 until each municipality in whose corporate limits or
31	31	extraterritorial jurisdiction the district is located has
32	32	consented by ordinance or resolution to the creation of the
33	33	district and to the inclusion of land in the district as required by
34	34	applicable law.
35	35	Sec. 7980A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
36	36	(a) The district is created to serve a public purpose and benefit.
37	37	(b) The district is created to accomplish the purposes of:
38	38	(1) a municipal utility district as provided by
39	39	general law and Section 59, Article XVI, Texas Constitution; and
40	40	(2) Section 52, Article III, Texas Constitution, that
41	41	relate to the construction, acquisition, improvement, operation,
42	42	or maintenance of macadamized, graveled, or paved roads, or
43	43	improvements, including storm drainage, in aid of those roads.
44	44	Sec. 7980A.0106. INITIAL DISTRICT TERRITORY. (a) The
45	45	district is initially composed of the territory described by
46	46	Section 2 of the Act enacting this chapter.
47	47	(b) The boundaries and field notes contained in Section 2 of
48	48	the Act enacting this chapter form a closure. A mistake made in the
49	49	field notes or in copying the field notes in the legislative process
50	50	does not affect the district's:
51	51	(1) organization, existence, or validity;
52	52	(2) right to issue any type of bond for the purposes
53	53	for which the district is created or to pay the principal of and
54	54	interest on a bond;
55	55	(3) right to impose a tax; or
56	56	(4) legality or operation.
57	57	SUBCHAPTER B. BOARD OF DIRECTORS
58	58	Sec. 7980A.0201. GOVERNING BODY; TERMS. (a) The district
59	59	is governed by a board of five elected directors.
60	60	(b) Except as provided by Section 7980A.0202, directors
61	61	serve staggered four-year terms.
62	62	Sec. 7980A.0202. TEMPORARY DIRECTORS. (a) On or after the
63	63	effective date of the Act enacting this chapter, the owner or owners
64	64	of a majority of the assessed value of the real property in the
65	65	district may submit a petition to the commission requesting that
66	66	the commission appoint as temporary directors the five persons
67	67	named in the petition. The commission shall appoint as temporary
68	68	directors the five persons named in the petition.
69	69	(b) Temporary directors serve until the earlier of:
70	70	(1) the date permanent directors are elected under
71	71	Section 7980A.0103; or
72	72	(2) the fourth anniversary of the effective date of
73	73	the Act enacting this chapter.
74	74	(c) If permanent directors have not been elected under
75	75	Section 7980A.0103 and the terms of the temporary directors have
76	76	expired, successor temporary directors shall be appointed or
77	77	reappointed as provided by Subsection (d) to serve terms that
78	78	expire on the earlier of:
79	79	(1) the date permanent directors are elected under
80	80	Section 7980A.0103; or
81	81	(2) the fourth anniversary of the date of the
82	82	appointment or reappointment.
83	83	(d) If Subsection (c) applies, the owner or owners of a
84	84	majority of the assessed value of the real property in the district
85	85	may submit a petition to the commission requesting that the
86	86	commission appoint as successor temporary directors the five
87	87	persons named in the petition. The commission shall appoint as
88	88	successor temporary directors the five persons named in the
89	89	petition.
90	90	SUBCHAPTER C. POWERS AND DUTIES
91	91	Sec. 7980A.0301. GENERAL POWERS AND DUTIES. The district
92	92	has the powers and duties necessary to accomplish the purposes for
93	93	which the district is created.
94	94	Sec. 7980A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
95	95	DUTIES. The district has the powers and duties provided by the
96	96	general law of this state, including Chapters 49 and 54, Water Code,
97	97	applicable to municipal utility districts created under Section 59,
98	98	Article XVI, Texas Constitution.
99	99	Sec. 7980A.0303. AUTHORITY FOR ROAD PROJECTS. Under
100	100	Section 52, Article III, Texas Constitution, the district may
101	101	design, acquire, construct, finance, issue bonds for, improve,
102	102	operate, maintain, and convey to this state, a county, or a
103	103	municipality for operation and maintenance macadamized, graveled,
104	104	or paved roads, or improvements, including storm drainage, in aid
105	105	of those roads.
106	106	Sec. 7980A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
107	107	road project must meet all applicable construction standards,
108	108	zoning and subdivision requirements, and regulations of each
109	109	municipality in whose corporate limits or extraterritorial
110	110	jurisdiction the road project is located.
111	111	(b) If a road project is not located in the corporate limits
112	112	or extraterritorial jurisdiction of a municipality, the road
113	113	project must meet all applicable construction standards,
114	114	subdivision requirements, and regulations of each county in which
115	115	the road project is located.
116	116	(c) If the state will maintain and operate the road, the
117	117	Texas Transportation Commission must approve the plans and
118	118	specifications of the road project.
119	119	Sec. 7980A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
120	120	ORDINANCE OR RESOLUTION. The district shall comply with all
121	121	applicable requirements of any ordinance or resolution that is
122	122	adopted under Section 54.016 or 54.0165, Water Code, and that
123	123	consents to the creation of the district or to the inclusion of land
124	124	in the district.
125	125	Sec. 7980A.0306. DIVISION OF DISTRICT. (a) The board, on
126	126	its own motion or on receipt of a petition signed by the owner or
127	127	owners of a majority of the assessed value of the real property in
128	128	the district, may adopt an order dividing the district.
129	129	(b) An order dividing a district may create one or more new
130	130	districts and may provide for the continuation of the district.
131	131	(c) An order dividing the district shall:
132	132	(1) name any new district;
133	133	(2) include the metes and bounds description of the
134	134	territory of each of the districts;
135	135	(3) appoint temporary directors for any new district;
136	136	and
137	137	(4) provide for the division of assets and liabilities
138	138	between the districts.
139	139	(d) The board may adopt an order dividing the district
140	140	before or after the date the board holds an election to confirm the
141	141	district's creation.
142	142	(e) The district may be divided only if the district:
143	143	(1) has never issued any bonds; and
144	144	(2) is not imposing ad valorem taxes.
145	145	(f) A new district created by the division of the district
146	146	may not, at the time the new district is created, contain any land
147	147	outside the area described by Section 2 of the Act enacting this
148	148	chapter.
149	149	(g) On or before the 30th day after the date of adoption of
150	150	an order dividing the district, the district shall file the order
151	151	with the commission and record the order in the real property
152	152	records of each county in which the district is located.
153	153	(h) This chapter applies to any new district created by the
154	154	division of the district, and a new district has all the powers and
155	155	duties of the district.
156	156	(i) A new district created by the division of the district
157	157	shall hold a confirmation and directors' election.
158	158	(j) If the creation of the new district is confirmed, the
159	159	new district shall provide the election date and results to the
160	160	commission.
161	161	(k) A new district created by the division of the district
162	162	must hold an election as required by this chapter to obtain voter
163	163	approval before the district may impose a maintenance tax or issue
164	164	bonds payable wholly or partly from ad valorem taxes.
165	165	(l) The district may continue to rely on confirmation,
166	166	directors', bond, or tax elections held prior to the division.
167	167	(m) Municipal consent to the creation of the district and to
168	168	the inclusion of land in the district acts as municipal consent to
169	169	the creation of any new district created by the division of the
170	170	district and to the inclusion of land in the new district.
171	171	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
172	172	Sec. 7980A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
173	173	The district may issue, without an election, bonds and other
174	174	obligations secured by:
175	175	(1) revenue other than ad valorem taxes; or
176	176	(2) contract payments described by Section
177	177	7980A.0403.
178	178	(b) The district must hold an election in the manner
179	179	provided by Chapters 49 and 54, Water Code, to obtain voter approval
180	180	before the district may impose an ad valorem tax or issue bonds
181	181	payable from ad valorem taxes.
182	182	(c) The district may not issue bonds payable from ad valorem
183	183	taxes to finance a road project unless the issuance is approved by a
184	184	vote of a two-thirds majority of the district voters voting at an
185	185	election held for that purpose.
186	186	Sec. 7980A.0402. OPERATION AND MAINTENANCE TAX. (a) If
187	187	authorized at an election held under Section 7980A.0401, the
188	188	district may impose an operation and maintenance tax on taxable
189	189	property in the district in accordance with Section 49.107, Water
190	190	Code.
191	191	(b) The board shall determine the tax rate. The rate may not
192	192	exceed the rate approved at the election.
193	193	Sec. 7980A.0403. CONTRACT TAXES. (a) In accordance with
194	194	Section 49.108, Water Code, the district may impose a tax other than
195	195	an operation and maintenance tax and use the revenue derived from
196	196	the tax to make payments under a contract after the provisions of
197	197	the contract have been approved by a majority of the district voters
198	198	voting at an election held for that purpose.
199	199	(b) A contract approved by the district voters may contain a
200	200	provision stating that the contract may be modified or amended by
201	201	the board without further voter approval.
202	202	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
203	203	Sec. 7980A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
204	204	OBLIGATIONS. The district may issue bonds or other obligations
205	205	payable wholly or partly from ad valorem taxes, impact fees,
206	206	revenue, contract payments, grants, or other district money, or any
207	207	combination of those sources, to pay for any authorized district
208	208	purpose.
209	209	Sec. 7980A.0502. TAXES FOR BONDS. At the time the district
210	210	issues bonds payable wholly or partly from ad valorem taxes, the
211	211	board shall provide for the annual imposition of a continuing
212	212	direct ad valorem tax, without limit as to rate or amount, while all
213	213	or part of the bonds are outstanding as required and in the manner
214	214	provided by Sections 54.601 and 54.602, Water Code.
215	215	Sec. 7980A.0503. BONDS FOR ROAD PROJECTS. At the time of
216	216	issuance, the total principal amount of bonds or other obligations
217	217	issued or incurred to finance road projects and payable from ad
218	218	valorem taxes may not exceed one-fourth of the assessed value of the
219	219	real property in the district.
220	220	SECTION 2. The Wharton County Municipal Utility District
221	221	No. 1 initially includes all the territory contained in the
222	222	following area:
223	223	Being a 104.7 acre tract of land (TRACT "A") and a 119.2 acre
224	224	tract of land (TRACT "B") located in the G.H. & H.R.R. Company
225	225	Survey, Section No. 5, A-169 in Wharton County, Texas; said 104.7
226	226	acre tract being all of a called 104.735 acre tract of land recorded
227	227	as "TRACT 1" in Book 1183, Pages 123-131 of the Waller County Deed
228	228	Records (W.C.D.R.), said 104.735 acre tract being described as all
229	229	of Lots 39-44, all of Lots 70-73 and the west 1/2 of Lot 69 of the
230	230	Miller Land Company Subdivision as recorded in Volume 28, Page 413
231	231	of the W.C.D.R., said 119.2 acre tract being all of called 119.171
232	232	acre tract of land recorded as "TRACT 2" in Book 1183, Pages 123-131
233	233	of the W.C.D.R., said 119.171 acre tract being described as all of
234	234	Lots 74-78 and all of Lots 90-93 of said Miller Land Company
235	235	Subdivision; said tracts being more particularly described by metes
236	236	and bounds as follows (all bearings are based on the Texas
237	237	Coordinate System, South Central Zone and referenced to the
238	238	northwesterly line of said 104.735 acre tract):
239	239	TRACT "A": 104.7 ACRES
240	240	BEGINNING at the west corner of said 104.735 acre tract, same
241	241	being on the northeasterly line of a 30-foot wide platted road and
242	242	the south line of a 60-foot wide platted road;
243	243	Thence, with the north line of said 104.735 acre tract and the
244	244	south line of said 60-foot wide road, North 79 degrees 16 minutes 00
245	245	seconds East, a distance of 1,643.39 feet to the north corner of
246	246	said 104.735 acre tract, same being on the southwesterly line of a
247	247	40-foot wide platted road;
248	248	Thence, with the northeasterly line of said 104.735 acre
249	249	tract and the southwesterly line of said 40-foot wide road, South 47
250	250	degrees 17 minutes 42 seconds East, a distance of 2,471.78 feet to
251	251	the northeasterly corner of said 104.735 acre tract;
252	252	Thence, with the easterly line of said 104.735 acre tract,
253	253	South 02 degrees 17 minutes 42 seconds East, a distance of 933.38
254	254	feet to a southeasterly corner of said 104.735 acre tract, same
255	255	being a common corner of aforesaid Lots 44, 45, 68 and 69;
256	256	Thence, with the southeasterly line of said 104.735 acre
257	257	tract, South 42 degrees 42 minutes 18 seconds West, a distance of
258	258	660.00 feet to the south corner of said 104.735 acre tract, same
259	259	being on the northeasterly line of aforesaid 30-foot wide road;
260	260	Thence, with the southwesterly line of said 104.735 acre
261	261	tract and the northeasterly line of said 30-foot wide road, North 47
262	262	degrees 17 minutes 42 seconds West, a distance of 4,110.73 feet to
263	263	the Point of Beginning and containing 104.7 acres of land.
264	264	TRACT "B": 119.2 ACRES
265	265	BEGINNING at the west corner of aforesaid 119.171 acre tract,
266	266	same being on the northeasterly line of a 40-foot wide platted road
267	267	and the south line of a 60-foot wide platted road;
268	268	Thence, with the north line of said 119.171 acre tract and the
269	269	south line of said 60-wide road, North 79 degrees 16 minutes 00
270	270	seconds East, a distance of 1,643.39 feet to the north corner of
271	271	said 119.171 acre tract, same being on the southwesterly line of a
272	272	30-wide platted road;
273	273	Thence, with the northeasterly line of said 119.171 acre
274	274	tract and the southwesterly line of said 30-wide road, South 47
275	275	degrees 17 minutes 42 seconds East, a distance of 3,443.16 feet to
276	276	the east corner of said 119.171 acre tract;
277	277	Thence, with the southeasterly line of said 119.171 acre
278	278	tract, South 42 degrees 42 minutes 18 seconds West, a distance of
279	279	1,320.00 feet to the south corner of said 119.171 acre tract, same
280	280	being a common corner of aforesaid Lots 78 and 79 on the
281	281	northeasterly line of aforesaid 40-foot wide road;
282	282	Thence, with the southwesterly line of said 119.171 acre
283	283	tract and the northeasterly line of said 40-foot wide road, North 47
284	284	degrees 17 minutes 42 seconds West, a distance of 4,422.11 feet to
285	285	the Point of Beginning and containing 119.2 acres of land.
286	286	SECTION 3. (a) The legal notice of the intention to
287	287	introduce this Act, setting forth the general substance of this
288	288	Act, has been published as provided by law, and the notice and a
289	289	copy of this Act have been furnished to all persons, agencies,
290	290	officials, or entities to which they are required to be furnished
291	291	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
292	292	Government Code.
293	293	(b) The governor, one of the required recipients, has
294	294	submitted the notice and Act to the Texas Commission on
295	295	Environmental Quality.
296	296	(c) The Texas Commission on Environmental Quality has filed
297	297	its recommendations relating to this Act with the governor, the
298	298	lieutenant governor, and the speaker of the house of
299	299	representatives within the required time.
300	300	(d) All requirements of the constitution and laws of this
301	301	state and the rules and procedures of the legislature with respect
302	302	to the notice, introduction, and passage of this Act are fulfilled
303	303	and accomplished.
304	304	SECTION 4. (a) If this Act does not receive a two-thirds
305	305	vote of all the members elected to each house, Subchapter C, Chapter
306	306	7980A, Special District Local Laws Code, as added by Section 1 of
307	307	this Act, is amended by adding Section 7980A.0307 to read as
308	308	follows:
309	309	Sec. 7980A.0307. NO EMINENT DOMAIN POWER. The district may
310	310	not exercise the power of eminent domain.
311	311	(b) This section is not intended to be an expression of a
312	312	legislative interpretation of the requirements of Section 17(c),
313	313	Article I, Texas Constitution.
314	314	SECTION 5. This Act takes effect immediately if it receives
315	315	a vote of two-thirds of all the members elected to each house, as
316	316	provided by Section 39, Article III, Texas Constitution. If this
317	317	Act does not receive the vote necessary for immediate effect, this
318	318	Act takes effect September 1, 2023.
319	319	______________________________ ______________________________
320	320	President of the Senate Speaker of the House
321	321	I certify that H.B. No. 5343 was passed by the House on May 9,
322	322	2023, by the following vote: Yeas 106, Nays 36, 2 present, not
323	323	voting.
324	324	______________________________
325	325	Chief Clerk of the House
326	326	I certify that H.B. No. 5343 was passed by the Senate on May
327	327	21, 2023, by the following vote: Yeas 26, Nays 4, 1 present, not
328	328	voting.
329	329	______________________________
330	330	Secretary of the Senate
331	331	APPROVED: _____________________
332	332	Date
333	333	_____________________
334	334	Governor