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Texas House Bill HB5377

Texas 2023 - 88th Regular

Texas House Bill HB5377 Compare Versions

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11 H.B. No. 5377
22
33
44 AN ACT
55 relating to the creation of the Fannin Farms Municipal Utility
66 District of Fannin County; granting a limited power of eminent
77 domain; providing authority to issue bonds; providing authority to
88 impose assessments, fees, and taxes.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subtitle F, Title 6, Special District Local Laws
1111 Code, is amended by adding Chapter 8002A to read as follows:
1212 CHAPTER 8002A. FANNIN FARMS MUNICIPAL UTILITY DISTRICT OF FANNIN
1313 COUNTY
1414 SUBCHAPTER A. GENERAL PROVISIONS
1515 Sec. 8002A.0101. DEFINITIONS. In this chapter:
1616 (1) "Board" means the district's board of directors.
1717 (2) "Commission" means the Texas Commission on
1818 Environmental Quality.
1919 (3) "Director" means a board member.
2020 (4) "District" means the Fannin Farms Municipal
2121 Utility District of Fannin County.
2222 Sec. 8002A.0102. NATURE OF DISTRICT. The district is a
2323 municipal utility district created under Section 59, Article XVI,
2424 Texas Constitution.
2525 Sec. 8002A.0103. CONFIRMATION AND DIRECTORS' ELECTION
2626 REQUIRED. The temporary directors shall hold an election to
2727 confirm the creation of the district and to elect five permanent
2828 directors as provided by Section 49.102, Water Code.
2929 Sec. 8002A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
3030 temporary directors may not hold an election under Section
3131 8002A.0103 until each municipality in whose corporate limits or
3232 extraterritorial jurisdiction the district is located has
3333 consented by ordinance or resolution to the creation of the
3434 district and to the inclusion of land in the district as required by
3535 applicable law.
3636 Sec. 8002A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
3737 (a) The district is created to serve a public purpose and benefit.
3838 (b) The district is created to accomplish the purposes of:
3939 (1) a municipal utility district as provided by
4040 general law and Section 59, Article XVI, Texas Constitution; and
4141 (2) Section 52, Article III, Texas Constitution, that
4242 relate to the construction, acquisition, improvement, operation,
4343 or maintenance of macadamized, graveled, or paved roads, or
4444 improvements, including storm drainage, in aid of those roads.
4545 Sec. 8002A.0106. INITIAL DISTRICT TERRITORY. (a) The
4646 district is initially composed of the territory described by
4747 Section 2 of the Act enacting this chapter.
4848 (b) The boundaries and field notes contained in Section 2 of
4949 the Act enacting this chapter form a closure. A mistake made in the
5050 field notes or in copying the field notes in the legislative process
5151 does not affect the district's:
5252 (1) organization, existence, or validity;
5353 (2) right to issue any type of bond for the purposes
5454 for which the district is created or to pay the principal of and
5555 interest on a bond;
5656 (3) right to impose a tax; or
5757 (4) legality or operation.
5858 SUBCHAPTER B. BOARD OF DIRECTORS
5959 Sec. 8002A.0201. GOVERNING BODY; TERMS. (a) The district
6060 is governed by a board of five elected directors.
6161 (b) Except as provided by Section 8002A.0202, directors
6262 serve staggered four-year terms.
6363 Sec. 8002A.0202. TEMPORARY DIRECTORS. (a) The temporary
6464 board consists of:
6565 (1) Jamie Johnson;
6666 (2) Jonathan Ferreira;
6767 (3) Jared Brown;
6868 (4) Brett McDonald; and
6969 (5) Helen Mullen.
7070 (b) Temporary directors serve until the earlier of:
7171 (1) the date permanent directors are elected under
7272 Section 8002A.0103; or
7373 (2) the fourth anniversary of the effective date of
7474 the Act enacting this chapter.
7575 (c) If permanent directors have not been elected under
7676 Section 8002A.0103 and the terms of the temporary directors have
7777 expired, successor temporary directors shall be appointed or
7878 reappointed as provided by Subsection (d) to serve terms that
7979 expire on the earlier of:
8080 (1) the date permanent directors are elected under
8181 Section 8002A.0103; or
8282 (2) the fourth anniversary of the date of the
8383 appointment or reappointment.
8484 (d) If Subsection (c) applies, the owner or owners of a
8585 majority of the assessed value of the real property in the district
8686 may submit a petition to the commission requesting that the
8787 commission appoint as successor temporary directors the five
8888 persons named in the petition. The commission shall appoint as
8989 successor temporary directors the five persons named in the
9090 petition.
9191 SUBCHAPTER C. POWERS AND DUTIES
9292 Sec. 8002A.0301. GENERAL POWERS AND DUTIES. The district
9393 has the powers and duties necessary to accomplish the purposes for
9494 which the district is created.
9595 Sec. 8002A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
9696 DUTIES. The district has the powers and duties provided by the
9797 general law of this state, including Chapters 49 and 54, Water Code,
9898 applicable to municipal utility districts created under Section 59,
9999 Article XVI, Texas Constitution.
100100 Sec. 8002A.0303. AUTHORITY FOR ROAD PROJECTS. Under
101101 Section 52, Article III, Texas Constitution, the district may
102102 design, acquire, construct, finance, issue bonds for, improve,
103103 operate, maintain, and convey to this state, a county, or a
104104 municipality for operation and maintenance macadamized, graveled,
105105 or paved roads, or improvements, including storm drainage, in aid
106106 of those roads.
107107 Sec. 8002A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
108108 road project must meet all applicable construction standards,
109109 zoning and subdivision requirements, and regulations of each
110110 municipality in whose corporate limits or extraterritorial
111111 jurisdiction the road project is located.
112112 (b) If a road project is not located in the corporate limits
113113 or extraterritorial jurisdiction of a municipality, the road
114114 project must meet all applicable construction standards,
115115 subdivision requirements, and regulations of each county in which
116116 the road project is located.
117117 (c) If the state will maintain and operate the road, the
118118 Texas Transportation Commission must approve the plans and
119119 specifications of the road project.
120120 Sec. 8002A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
121121 ORDINANCE OR RESOLUTION. The district shall comply with all
122122 applicable requirements of any ordinance or resolution that is
123123 adopted under Section 54.016 or 54.0165, Water Code, and that
124124 consents to the creation of the district or to the inclusion of land
125125 in the district.
126126 Sec. 8002A.0306. DIVISION OF DISTRICT. (a) The board, on
127127 its own motion or on receipt of a petition signed by the owner or
128128 owners of a majority of the assessed value of the real property in
129129 the district, may adopt an order dividing the district.
130130 (b) An order dividing a district may create one or more new
131131 districts and may provide for the continuation of the district.
132132 (c) An order dividing the district shall:
133133 (1) name any new district;
134134 (2) include the metes and bounds description of the
135135 territory of each of the districts;
136136 (3) appoint temporary directors for any new district;
137137 and
138138 (4) provide for the division of assets and liabilities
139139 between the districts.
140140 (d) The board may adopt an order dividing the district
141141 before or after the date the board holds an election to confirm the
142142 district's creation.
143143 (e) The district may be divided only if the district:
144144 (1) has no outstanding bonded debt; and
145145 (2) is not imposing ad valorem taxes.
146146 (f) A new district created by the division of the district
147147 may not, at the time the new district is created, contain any land
148148 outside the area described by Section 2 of the Act enacting this
149149 chapter.
150150 (g) On or before the 30th day after the date of adoption of
151151 an order dividing the district, the district shall file the order
152152 with the commission and record the order in the real property
153153 records of each county in which the district is located.
154154 (h) This chapter applies to any new district created by the
155155 division of the district, and a new district has all the powers and
156156 duties of the district.
157157 (i) A new district created by the division of the district
158158 shall hold a confirmation and directors' election.
159159 (j) If the creation of the new district is confirmed, the
160160 new district shall provide the election date and results to the
161161 commission.
162162 (k) A new district created by the division of the district
163163 must hold an election as required by this chapter to obtain voter
164164 approval before the district may impose a maintenance tax or issue
165165 bonds payable wholly or partly from ad valorem taxes.
166166 (l) The district may continue to rely on confirmation,
167167 directors', bond, or tax elections held prior to the division.
168168 (m) Municipal consent to the creation of the district and to
169169 the inclusion of land in the district acts as municipal consent to
170170 the creation of any new district created by the division of the
171171 district and to the inclusion of land in the new district.
172172 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
173173 Sec. 8002A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
174174 The district may issue, without an election, bonds and other
175175 obligations secured by:
176176 (1) revenue other than ad valorem taxes; or
177177 (2) contract payments described by Section
178178 8002A.0403.
179179 (b) The district must hold an election in the manner
180180 provided by Chapters 49 and 54, Water Code, to obtain voter approval
181181 before the district may impose an ad valorem tax or issue bonds
182182 payable from ad valorem taxes.
183183 (c) The district may not issue bonds payable from ad valorem
184184 taxes to finance a road project unless the issuance is approved by a
185185 vote of a two-thirds majority of the district voters voting at an
186186 election held for that purpose.
187187 Sec. 8002A.0402. OPERATION AND MAINTENANCE TAX. (a) If
188188 authorized at an election held under Section 8002A.0401, the
189189 district may impose an operation and maintenance tax on taxable
190190 property in the district in accordance with Section 49.107, Water
191191 Code.
192192 (b) The board shall determine the tax rate. The rate may not
193193 exceed the rate approved at the election.
194194 Sec. 8002A.0403. CONTRACT TAXES. (a) In accordance with
195195 Section 49.108, Water Code, the district may impose a tax other than
196196 an operation and maintenance tax and use the revenue derived from
197197 the tax to make payments under a contract after the provisions of
198198 the contract have been approved by a majority of the district voters
199199 voting at an election held for that purpose.
200200 (b) A contract approved by the district voters may contain a
201201 provision stating that the contract may be modified or amended by
202202 the board without further voter approval.
203203 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
204204 Sec. 8002A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
205205 OBLIGATIONS. The district may issue bonds or other obligations
206206 payable wholly or partly from ad valorem taxes, impact fees,
207207 revenue, contract payments, grants, or other district money, or any
208208 combination of those sources, to pay for any authorized district
209209 purpose.
210210 Sec. 8002A.0502. TAXES FOR BONDS. At the time the district
211211 issues bonds payable wholly or partly from ad valorem taxes, the
212212 board shall provide for the annual imposition of a continuing
213213 direct ad valorem tax, without limit as to rate or amount, while all
214214 or part of the bonds are outstanding as required and in the manner
215215 provided by Sections 54.601 and 54.602, Water Code.
216216 Sec. 8002A.0503. BONDS FOR ROAD PROJECTS. At the time of
217217 issuance, the total principal amount of bonds or other obligations
218218 issued or incurred to finance road projects and payable from ad
219219 valorem taxes may not exceed one-fourth of the assessed value of the
220220 real property in the district.
221221 SECTION 2. The Fannin Farms Municipal Utility District of
222222 Fannin County initially includes all the territory contained in the
223223 following area:
224224 BEING a 103.805 acres tract of land out of the L. LEONARD SURVEY,
225225 ABSTRACT No. 669, Fannin County, Texas; being the remainder of that
226226 certain tract described in Volume 1494, Page 383, Real Property
227227 Records, Fannin County, Texas; and being further described by metes
228228 and bounds as follows:
229229 The following Bearings, Distances, and/or Areas derived from GNSS
230230 observations performed by Texas Surveying, Inc. and reflect N.A.D.
231231 1983, Texas State Plane Coordinate System, North Central Zone 4202
232232 (GRID).
233233 BEGINNING at a found 1/2" iron rod in the centerline of County Road
234234 No. 4940, same being at the southeast corner of said Volume 1494,
235235 Page 383 tract, for the southeast and beginning corner of this
236236 tract.
237237 THENCE S 89°45'32" W 2695.19 feet along the south line of said Volume
238238 1494, Page 383 tract to a set 1/2" iron rod with blue plastic cap
239239 stamped "TEXAS SURVEYING INC" in the east line of Parcel A described
240240 in Volume 1804, Page 477, R.P.R.F.C.T., for the southwest corner of
241241 this tract.
242242 THENCE N 01°18'16" E 797.55 feet along the east line of said Parcel A
243243 to a set 1/2" iron rod with blue plastic cap stamped "TEXAS
244244 SURVEYING INC", for a corner of this tract.
245245 THENCE N 00°31'48" E 1023.20 feet to a point in the occupied north
246246 line of County Road No. 4941, for the northwest corner of this
247247 tract.
248248 THENCE N 89°34'33" E 929.85 feet along said north line of County Road
249249 No. 4941 to a point, for a corner of this tract.
250250 THENCE N 89°53'29" E 1310.55 feet along said north line of County
251251 Road No. 4941 to a found 1/2" capped iron rod, for the northerly
252252 northeast corner of this tract.
253253 THENCE S 02°20'47" W 226.02 feet to a 8" wood fence post, for an ell
254254 corner of this tract.
255255 THENCE S 88°36'58" E 443.71 feet pass a 10" wood fence post in the
256256 occupied west line of said County Road 4940 to a found 1/2" iron rod
257257 in said centerline of County Road No. 4940, for the easterly
258258 northeast corner of this tract.
259259 THENCE S 00°15'32" W 590.38 feet along said centerline of County
260260 Road No. 4940 to a point at the easterly northeast corner of that
261261 called 6.000 acres tract described in Volume 1766, Page 18,
262262 R.P.R.F.C.T., for a corner of this tract.
263263 THENCE along the north, west, and south lines of said 6.000 acres
264264 tract as follows:
265265 N 60°43'24" W at 15.93 feet pass a found 1/2" iron rod, for a total
266266 distance of 432.50 feet to a found 1/2" iron rod, for a corner of
267267 this tract.
268268 S 89°27'22" W 271.21 feet to a found 1/2" capped iron rod, for a
269269 corner of this tract.
270270 S 00°00'16" E 464.40 feet to a found 1/2" iron rod, for a corner of
271271 this tract.
272272 S 89°57'30" E at 620.50 feet pass a found 1/2" capped iron rod, for a
273273 total distance of 647.27 feet to a point in said centerline of
274274 County Road No. 4940, for a corner of this tract.
275275 THENCE S 00°15'32" W 735.68 feet along said centerline of County
276276 Road No. 4940 to the POINT OF BEGINNING.
277277 SECTION 3. (a) The legal notice of the intention to
278278 introduce this Act, setting forth the general substance of this
279279 Act, has been published as provided by law, and the notice and a
280280 copy of this Act have been furnished to all persons, agencies,
281281 officials, or entities to which they are required to be furnished
282282 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
283283 Government Code.
284284 (b) The governor, one of the required recipients, has
285285 submitted the notice and Act to the Texas Commission on
286286 Environmental Quality.
287287 (c) The Texas Commission on Environmental Quality has filed
288288 its recommendations relating to this Act with the governor, the
289289 lieutenant governor, and the speaker of the house of
290290 representatives within the required time.
291291 (d) All requirements of the constitution and laws of this
292292 state and the rules and procedures of the legislature with respect
293293 to the notice, introduction, and passage of this Act are fulfilled
294294 and accomplished.
295295 SECTION 4. (a) If this Act does not receive a two-thirds
296296 vote of all the members elected to each house, Subchapter C, Chapter
297297 8002A, Special District Local Laws Code, as added by Section 1 of
298298 this Act, is amended by adding Section 8002A.0307 to read as
299299 follows:
300300 Sec. 8002A.0307. NO EMINENT DOMAIN POWER. The district may
301301 not exercise the power of eminent domain.
302302 (b) This section is not intended to be an expression of a
303303 legislative interpretation of the requirements of Section 17(c),
304304 Article I, Texas Constitution.
305305 SECTION 5. This Act takes effect immediately if it receives
306306 a vote of two-thirds of all the members elected to each house, as
307307 provided by Section 39, Article III, Texas Constitution. If this
308308 Act does not receive the vote necessary for immediate effect, this
309309 Act takes effect September 1, 2023.
310310 ______________________________ ______________________________
311311 President of the Senate Speaker of the House
312312 I certify that H.B. No. 5377 was passed by the House on May
313313 12, 2023, by the following vote: Yeas 102, Nays 38, 2 present, not
314314 voting.
315315 ______________________________
316316 Chief Clerk of the House
317317 I certify that H.B. No. 5377 was passed by the Senate on May
318318 24, 2023, by the following vote: Yeas 28, Nays 2, 1 present, not
319319 voting.
320320 ______________________________
321321 Secretary of the Senate
322322 APPROVED: _____________________
323323 Date
324324 _____________________
325325 Governor