Texas 2023 - 88th Regular

Texas House Bill HB5365 Compare Versions

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1	1	H.B. No. 5365
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Austin County Municipal Utility
6	6	District No. 3; 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 7984A to read as follows:
12	12	CHAPTER 7984A. AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 3
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 7984A.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 Austin County Municipal
20	20	Utility District No. 3.
21	21	Sec. 7984A.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. 7984A.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. 7984A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	29	temporary directors may not hold an election under Section
30	30	7984A.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. 7984A.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. 7984A.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. 7984A.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 7984A.0202, directors
61	61	serve staggered four-year terms.
62	62	Sec. 7984A.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 7984A.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 7984A.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 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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	7984A.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. 7984A.0402. OPERATION AND MAINTENANCE TAX. (a) If
187	187	authorized at an election held under Section 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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 Austin County Municipal Utility District
221	221	No. 3 initially includes all the territory contained in the
222	222	following area:
223	223	Being 536.9 acres of land situated in the Miles N. Allen
224	224	Survey, Abstract No. 3, the J.B. Allen Survey, Abstract No. 420 and
225	225	the R.M. Moore Survey, Abstract No. 381, in Austin County, Texas,
226	226	said 536.9 acre tract being all of that certain 536.9227 acre tract
227	227	of land recorded in the name of NESH FARMS HWY. 36, LLC in Document
228	228	Number 214030, Official Public Records of Austin County, Texas
229	229	(O.P.R.A.C.), said 536.9 acre tract being more particularly
230	230	described by metes and bounds as follows; (bearing are based on the
231	231	southwesterly Right-of-Way (R.O.W.) line of State Highway 36 (SH
232	232	36) being South 36 degrees 42 minutes 44 seconds East);
233	233	Beginning at the northerly corner of said 536.9227 acre
234	234	tract, being the northeasterly corner of a called 4.97 acre tract of
235	235	land recorded in Document No. 094014, O.P.R.A.C., also being on the
236	236	southwesterly R.O.W. line of said SH 36;
237	237	Thence, with the northeasterly line of said 536.9227 acre
238	238	tract and the southwesterly R.O.W. line of said SH 36, South 36
239	239	degrees 42 minutes 44 seconds East, a distance of 3,479.28 feet to
240	240	the northeasterly corner of said 536.9227 acre tract, being the
241	241	most northerly corner of a called 270.50 acre tract as shown on map
242	242	recorded in Volume 572, Page 371 of the Austin County Deed Records
243	243	(A.C.D.R.);
244	244	Thence, with the common line between said 536.9227 acre tract
245	245	and said 270.50 acre tract, the following three (3) courses and
246	246	distances:
247	247	1. South 43 degrees 51 minutes 00 seconds West, a distance
248	248	of 3,633.17 feet;
249	249	2. North 47 degrees 15 minutes 59 seconds West, a distance
250	250	of 859.26 feet;
251	251	3. South 42 degrees 47 minutes 12 seconds West, a distance
252	252	of 4,003.07 feet to the most southerly corner of said 536.9227 acre
253	253	tract, being on the northerly line of a called 712.06 acre tract of
254	254	land, Property ID No. 10822, Austin County Appraisal District;
255	255	Thence, with the southwesterly line of said 536.9227 acre
256	256	tract and the northeasterly line of said 712.06 acre tract and the
257	257	northeasterly line of a called 332.00 acre tract of land described
258	258	in deed recorded in Volume 776, Page 340, A.C.D.R., North 47 degrees
259	259	22 minutes 51 seconds West, a distance of 2,495.02 feet to the
260	260	westerly corner of said 536.9227 acre tract, being the
261	261	southeasterly corner of a called 27.85 acre tract of land described
262	262	in deed recorded in Volume 449, Page 507, A.C.D.R.;
263	263	Thence, with the northwesterly line of said 536.9227 acre
264	264	tract, North 42 degrees 47 minutes 29 seconds East, a distance of
265	265	8,277.81 feet to the Point of Beginning and containing 536.9 acres
266	266	of land.
267	267	SECTION 3. (a) The legal notice of the intention to
268	268	introduce this Act, setting forth the general substance of this
269	269	Act, has been published as provided by law, and the notice and a
270	270	copy of this Act have been furnished to all persons, agencies,
271	271	officials, or entities to which they are required to be furnished
272	272	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
273	273	Government Code.
274	274	(b) The governor, one of the required recipients, has
275	275	submitted the notice and Act to the Texas Commission on
276	276	Environmental Quality.
277	277	(c) The Texas Commission on Environmental Quality has filed
278	278	its recommendations relating to this Act with the governor, the
279	279	lieutenant governor, and the speaker of the house of
280	280	representatives within the required time.
281	281	(d) All requirements of the constitution and laws of this
282	282	state and the rules and procedures of the legislature with respect
283	283	to the notice, introduction, and passage of this Act are fulfilled
284	284	and accomplished.
285	285	SECTION 4. (a) If this Act does not receive a two-thirds
286	286	vote of all the members elected to each house, Subchapter C, Chapter
287	287	7984A, Special District Local Laws Code, as added by Section 1 of
288	288	this Act, is amended by adding Section 7984A.0307 to read as
289	289	follows:
290	290	Sec. 7984A.0307. NO EMINENT DOMAIN POWER. The district may
291	291	not exercise the power of eminent domain.
292	292	(b) This section is not intended to be an expression of a
293	293	legislative interpretation of the requirements of Section 17(c),
294	294	Article I, Texas Constitution.
295	295	SECTION 5. This Act takes effect immediately if it receives
296	296	a vote of two-thirds of all the members elected to each house, as
297	297	provided by Section 39, Article III, Texas Constitution. If this
298	298	Act does not receive the vote necessary for immediate effect, this
299	299	Act takes effect September 1, 2023.
300	300	______________________________ ______________________________
301	301	President of the Senate Speaker of the House
302	302	I certify that H.B. No. 5365 was passed by the House on May 9,
303	303	2023, by the following vote: Yeas 106, Nays 36, 2 present, not
304	304	voting.
305	305	______________________________
306	306	Chief Clerk of the House
307	307	I certify that H.B. No. 5365 was passed by the Senate on May
308	308	21, 2023, by the following vote: Yeas 27, Nays 4.
309	309	______________________________
310	310	Secretary of the Senate
311	311	APPROVED: _____________________
312	312	Date
313	313	_____________________
314	314	Governor