Texas 2023 - 88th Regular

Texas House Bill HB5369 Compare Versions

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1	1	H.B. No. 5369
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Sandow Municipal Utility District
6	6	No. 1; granting a limited power of eminent domain; providing
7	7	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 7986A to read as follows:
12	12	CHAPTER 7986A. SANDOW MUNICIPAL UTILITY DISTRICT NO. 1
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 7986A.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 Sandow Municipal Utility
20	20	District No. 1.
21	21	Sec. 7986A.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. 7986A.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. 7986A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	29	temporary directors may not hold an election under Section
30	30	7986A.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. 7986A.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. 7986A.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. 7986A.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 7986A.0202, directors
61	61	serve staggered four-year terms.
62	62	Sec. 7986A.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 7986A.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 7986A.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 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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
177	177	Section 7986A.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. 7986A.0402. OPERATION AND MAINTENANCE TAX. (a) If
187	187	authorized at an election held under Section 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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 Sandow Municipal Utility District No. 1
221	221	initially includes all the territory contained in the following
222	222	area:
223	223	BEING A 201.0 ACRES TRACT OF LAND SITUATED IN THE ELIZABETH
224	224	MILBOURN SURVEY, ABSTRACT 414 AND OLIVER FARNSWORTH SURVEY,
225	225	ABSTRACT 163, MILAM COUNTY, TEXAS; AND BEING A PORTION OF A CALLED
226	226	15,022.733 ACRES TRACT OF LAND DESIGNATED AS "TRACT 018-R3" AND
227	227	DESCRIBED TO SLR PROPERTY I, LP, AS SHOWN ON INSTRUMENT RECORDED
228	228	UNDER DOCUMENT NO. 2021-5108 OF THE OFFICIAL PUBLIC RECORDS OF
229	229	MILAM COUNTY, TEXAS (O.P.R.M.C.T.); AND BEING MORE PARTICULARLY
230	230	DESCRIBED AS FOLLOWS:
231	231	BEGINNING IN THE WEST BOUNDARY LINE OF SAID TRACT 018-R3 AND
232	232	FOR THE SOUTHEAST CORNER OF A CALLED 61.006 ACRES TRACT OF LAND
233	233	DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON INSTRUMENT RECORDED UNDER
234	234	DOCUMENT NO. 2022-5130 OF THE OFFICIAL PUBLIC RECORDS OF MILAM
235	235	COUNTY, TEXAS (O.P.R.M.C.T.);
236	236	THENCE, WITH SAID WEST BOUNDARY LINE OF TRACT 018-R3, SAME
237	237	BEING THE EAST BOUNDARY LINE OF SAID 61.006 ACRES TRACT, THE
238	238	FOLLOWING TWO (2) COURSES AND DISTANCES:
239	239	1. NORTH 21°10'24" WEST, A DISTANCE OF 2,162.68 FEET;
240	240	2. NORTH 68°55'41" EAST, A DISTANCE OF 1,308.45 FEET;
241	241	THENCE, NORTH 21°29'53" WEST, CONTINUING WITH SAID WEST
242	242	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID EAST BOUNDARY LINE OF
243	243	THE 61.006 ACRES TRACT, THE EAST BOUNDARY LINE OF A CALLED 28.718
244	244	ACRES TRACT OF LAND DESCRIBED TO RUSSELL D. LEWIS AND LISA LEWIS, AS
245	245	SHOWN ON INSTRUMENT RECORDED UNDER DOCUMENT NO. 2020-1490 OF THE
246	246	O.P.R.M.C.T., AND THE EAST BOUNDARY LINE OF A CALLED 20.0 ACRES
247	247	TRACT OF LAND DESCRIBED TO KREGG YOUNT, AS SHOWN ON INSTRUMENT
248	248	RECORDED UNDER DOCUMENT NO. 1129-451 OF THE O.P.R.M.C.T., A
249	249	DISTANCE OF 1,916.67 FEET TO THE SOUTH BOUNDARY LINE OF A CALLED
250	250	27.527 ACRES TRACT OF LAND DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON
251	251	INSTRUMENT RECORDED UNDER DOCUMENT NO. 2022-5130 OF THE
252	252	O.P.R.M.C.T.;
253	253	THENCE, NORTH 69°10'24" EAST, CONTINUING WITH SAID WEST
254	254	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID SOUTH BOUNDARY LINE
255	255	OF 27.527 ACRES TRACT AND THE SOUTH BOUNDARY LINE OF A CALLED 73.703
256	256	ACRES TRACT OF LAND DESCRIBED TO WILFORD ALLEN TATE, AS SHOWN ON
257	257	INSTRUMENT RECORDED UNDER DOCUMENT NO. 1264-251 OF THE
258	258	O.P.R.M.C.T., A DISTANCE OF 1,809.84 FEET TO THE SOUTHEAST CORNER
259	259	OF SAID 73.703 ACRES TRACT;
260	260	THENCE, NORTH 20°34'38" WEST, CONTINUING WITH SAID WEST
261	261	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE EAST BOUNDARY LINE OF
262	262	SAID 73.703 ACRES TRACT, A DISTANCE OF 996.83 FEET TO THE SOUTHWEST
263	263	CORNER OF A CALLED 150.0 ACRES TRACT OF LAND DESCRIBED TO HOBBS
264	264	MARTIN D ESTATE (RECORDING INFORMATION UNKNOWN);
265	265	THENCE, NORTH 68°13'17" EAST, DEPARTING SAID EAST BOUNDARY
266	266	LINE OF THE 73.703 ACRES TRACT OF LAND, CONTINUING WITH SAID WEST
267	267	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE SOUTH BOUNDARY LINE OF
268	268	SAID 150.0 ACRES TRACT, DISTANCE OF 1,314.13 FEET TO THE SOUTHEAST
269	269	CORNER OF SAID 150.0 ACRE TRACT;
270	270	THENCE, DEPARTING SAID WEST BOUNDARY LINE OF TRACT 018-R3 AND
271	271	SAID SOUTH BOUNDARY LINE OF THE 150.0 ACRES TRACT, OVER AND ACROSS
272	272	SAID TRACT 018-R3, THE FOLLOWING THREE (3) COURSES AND DISTANCES:
273	273	1. SOUTH 20°34'38" EAST, A DISTANCE OF 1,234.87 FEET;
274	274	2. SOUTH 25°30'16" WEST, A DISTANCE OF 3,635.53 FEET;
275	275	3. SOUTH 31°36'25" WEST, A DISTANCE OF 2,227.86 FEET TO THE POINT
276	276	OF BEGINNING AND CONTAINING 201.0 ACRES OF LAND, MORE OR LESS, IN
277	277	MILAM COUNTY, TEXAS. THIS DOCUMENT WAS PREPARED IN THE OFFICE OF
278	278	KIMLEY-HORN INC. IN AUSTIN, TEXAS.
279	279	SECTION 3. (a) The legal notice of the intention to
280	280	introduce this Act, setting forth the general substance of this
281	281	Act, has been published as provided by law, and the notice and a
282	282	copy of this Act have been furnished to all persons, agencies,
283	283	officials, or entities to which they are required to be furnished
284	284	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
285	285	Government Code.
286	286	(b) The governor, one of the required recipients, has
287	287	submitted the notice and Act to the Texas Commission on
288	288	Environmental Quality.
289	289	(c) The Texas Commission on Environmental Quality has filed
290	290	its recommendations relating to this Act with the governor, the
291	291	lieutenant governor, and the speaker of the house of
292	292	representatives within the required time.
293	293	(d) All requirements of the constitution and laws of this
294	294	state and the rules and procedures of the legislature with respect
295	295	to the notice, introduction, and passage of this Act are fulfilled
296	296	and accomplished.
297	297	SECTION 4. (a) If this Act does not receive a two-thirds
298	298	vote of all the members elected to each house, Subchapter C, Chapter
299	299	7986A, Special District Local Laws Code, as added by Section 1 of
300	300	this Act, is amended by adding Section 7986A.0307 to read as
301	301	follows:
302	302	Sec. 7986A.0307. NO EMINENT DOMAIN POWER. The district may
303	303	not exercise the power of eminent domain.
304	304	(b) This section is not intended to be an expression of a
305	305	legislative interpretation of the requirements of Section 17(c),
306	306	Article I, Texas Constitution.
307	307	SECTION 5. This Act takes effect immediately if it receives
308	308	a vote of two-thirds of all the members elected to each house, as
309	309	provided by Section 39, Article III, Texas Constitution. If this
310	310	Act does not receive the vote necessary for immediate effect, this
311	311	Act takes effect September 1, 2023.
312	312	______________________________ ______________________________
313	313	President of the Senate Speaker of the House
314	314	I certify that H.B. No. 5369 was passed by the House on May 6,
315	315	2023, by the following vote: Yeas 105, Nays 29, 2 present, not
316	316	voting.
317	317	______________________________
318	318	Chief Clerk of the House
319	319	I certify that H.B. No. 5369 was passed by the Senate on May
320	320	21, 2023, by the following vote: Yeas 26, Nays 4, 1 present, not
321	321	voting.
322	322	______________________________
323	323	Secretary of the Senate
324	324	APPROVED: _____________________
325	325	Date
326	326	_____________________
327	327	Governor