By: Wilson (Senate Sponsor - Schwertner) H.B. No. 5379
(In the Senate - Received from the House May 10, 2023;
May 10, 2023, read first time and referred to Committee on Local
Government; May 17, 2023, reported favorably by the following
vote: Yeas 9, Nays 0; May 17, 2023, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Williamson and Bell Counties
Municipal Utility District No. 1; 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 7972A to read as follows:
CHAPTER 7972A. WILLIAMSON AND BELL COUNTIES MUNICIPAL UTILITY
DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7972A.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 Williamson and Bell Counties
Municipal Utility District No. 1.
Sec. 7972A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7972A.0103. CONFIRMATION AND DIRECTORS' 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. 7972A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7972A.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.
Sec. 7972A.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. 7972A.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. 7972A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7972A.0202, directors
serve staggered four-year terms.
Sec. 7972A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Jamison Stewart;
(2) Ron Lusk;
(3) Paul Otte;
(4) Megan Turnipseed; and
(5) Roland Fagerberg.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7972A.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 7972A.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 7972A.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. 7972A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7972A.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. 7972A.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. 7972A.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. 7972A.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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7972A.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
7972A.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. 7972A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7972A.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. 7972A.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. 7972A.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. 7972A.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. 7972A.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 Williamson and Bell Counties Municipal
Utility District No. 1 initially includes all the territory
contained in the following area:
355.8 ACRES OF LAND LOCATED IN THE ELISHA DAVIS SURVEY 23,
ABSTRACT 172, WILLIAMSON COUNTY, TEXAS, AND THE ELISHA DAVIS SURVEY
23, ABSTRACT 244, BELL COUNTY TEXAS, COMPRISED OF THAT CALLED
134.83 ACRE TRACT DESCRIBED IN DOCUMENT 2008000104, THAT CALLED
110.51 ACRE TRACT DESCRIBED IN DOCUMENT 2008000103, AND THAT CALLED
110.51 ACRE TRACT DESCRIBED IN DOCUMENT 2020077242 ALL OF THE
OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY, TEXAS. SAID 355.8
ACRES BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING, AT A FOUND 1” IRON PIPE ON THE NORTH RIGHT-OF-WAY
LINE OF COUNTY ROAD 307, THE SOUTHEAST CORNER OF SAID 110.51 ACRE
TRACT DESCRIBED IN DOCUMENT 2020077242, AND THE SOUTHWEST CORNER OF
A CALLED 114.33 ACRE TRACT DESCRIBED IN DOCUMENT 9641312 OF THE
OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY, TEXAS;
THENCE, S 67°50'15" W, WITH THE COMMON LINE OF SAID 110.51
ACRE TRACT DESCRIBED IN DOCUMENT 2020077242 AND SAID COUNTY ROAD
307, A DISTANCE OF 781.06 FEET TO A FOUND 1/2” IRON ROD WITH CAP
MARKED “RPLS 5784”;
THENCE, S 50°10'30" W, WITH THE COMMON LINE OF SAID 110.51
ACRE TRACT DESCRIBED IN DOCUMENT 2020077242 AND SAID COUNTY ROAD
307, AT A DISTANCE OF 308.92 FEET PASSING A FOUND 1/2” IRON ROD WITH
CAP MARKED “RPLS 5784” AT THE SOUTHWEST CORNER OF SAID 110.51 ACRE
TRACT DESCRIBED IN DOCUMENT 2020077242 AND THE SOUTHEAST CORNER OF
SAID 110.51 ACRE TRACT DESCRIBED IN DOCUMENT 2008000103, CONTINUING
WITH THE COMMON LINE OF SAID COUNTY ROAD 307 AND SAID 110.51 ACRE
TRACT DESCRIBED IN DOCUMENT 2008000103, A TOTAL DISTANCE OF 632.18
FEET TO A FOUND COTTON SPINDLE;
THENCE, S 49°58'30" W, WITH THE COMMON LINE OF SAID 110.51
ACRE TRACT DESCRIBED IN DOCUMENT 2008000103 AND SAID COUNTY ROAD
307, A DISTANCE OF 748.19 FEET TO A FOUND 1” SQUARE IRON PIPE AT THE
SOUTHWEST CORNER OF SAID 110.51 ACRE TRACT DESCRIBED IN DOCUMENT
2008000103, AND THE EAST LINE OF A CALLED 464.1 ACRE TRACT DESCRIBED
IN VOLUME 365, PAGE 115 OF THE DEED RECORDS OF WILLIAMSON COUNTY,
TEXAS;
THENCE, WITH THE COMMON LINES OF SAID 464.1 ACRE TRACT AND
SAID 110.51 ACRE TRACT DESCRIBED IN DOCUMENT 2008000103, THE
FOLLOWING BEARINGS AND DISTANCES:
N 21°33'15" W, A DISTANCE OF 272.82 FEET TO A FOUND 1/2” IRON
ROD WITH CAP MARKED “RPLS 5784;
S 68°36'45" W, A DISTANCE OF 47.23 FEET TO A FOUND 5/8” IRON
ROD;
N 22°16'30" W, AT A DISTANCE OF 4362.66 FEET PASSING THE
NORTHWEST CORNER OF SAID 110.51 ACRE TRACT DESCRIBED IN DOCUMENT
2008000103 AND THE SOUTHWEST CORNER OF SAID 134.83 ACRE TRACT,
CONTINUING WITH THE COMMON LINES OF SAID 464.1 ACRE TRACT AND SAID
134.83 ACRE TRACT, A TOTAL DISTANCE OF 4414.09 FEET TO A SET 1/2”
IRON ROD WITH “CUDE” CAP;
THENCE, N 21°49'30" W, WITH THE COMMON LINES OF SAID 464.1
ACRE TRACT AND SAID 134.83 ACRE TRACT, A DISTANCE OF 59.24 FEET TO A
SET 1/2” IRON ROD WITH “CUDE” CAP;
THENCE, N 22°28'45" W, WITH THE COMMON LINES OF SAID 464.1
ACRE TRACT AND SAID 134.83 ACRE TRACT, A DISTANCE OF 2643.38 FEET TO
A SET 1/2” IRON ROD WITH “CUDE” CAP AT THE NORTHWEST CORNER OF SAID
134.83 ACRE TRACT, ON THE SOUTH LINE OF A CALLED 767 ACRE TRACT
DESCRIBED IN VOLUME 365, PAGE 115 OF THE DEED RECORDS OF WILLIAMSON
COUNTY, TEXAS AND THE NORTHEAST CORNER OF SAID 464.1 ACRE TRACT;
THENCE, N 67°04'15" E, WITH THE COMMON LINE OF SAID 134.83
ACRE TRACT AND SAID 767 ACRE TRACT, A DISTANCE OF 890.64 FEET TO A
FOUND NAIL ON CEDAR POST AT THE COMMON CORNER OF SAID 767 ACRE TRACT
AND A 415.66 ACRE TRACT DESCRIBED IN VOLUME 798, PAGE 146 OF THE
DEED RECORDS OF BELL COUNTY, TEXAS, AN ANGLE POINT ON THE NORTH LINE
OF SAID 134.83 ACRE TRACT;
THENCE, N 68°25'45" E, WITH THE COMMON LINE OF SAID 134.83
ACRE TRACT AND SAID 415.66 ACRE TRACT, A DISTANCE OF 1335.71 FEET TO
A FOUND 1” SQUARE IRON PIPE AT THE NORTHEAST CORNER OF SAID 134.83
ACRE TRACT AND THE NORTHWEST CORNER OF SAID 114.33 ACRE TRACT;
THENCE, S 21°42'45" E, WITH THE COMMON LINE OF SAID 134.83
ACRE TRACT AND SAID 114.33 ACRE TRACT, A DISTANCE OF 2336.96 FEET TO
A FOUND 1/2” IRON ROD WITH CAP MARKED “RPLS 5784”;
THENCE, S 25°45'46" E, WITH THE COMMON LINE OF SAID 134.83
ACRE TRACT AND SAID 114.33 ACRE TRACT, AT A DISTANCE OF 42.61 FEET
PASSING THE SOUTHEAST CORNER OF SAID 134.83 ACRE TRACT AND THE
NORTHEAST CORNER OF SAID 110.51 ACRE TRACT DESCRIBED IN DOCUMENT
2020077242, AND CONTINUING WITH THE COMMON LINE OF SAID 110.51 ACRE
TRACT DESCRIBED IN DOCUMENT 2020077242 AND SAID 114.33 ACRE TRACT,
A TOTAL DISTANCE OF 157.87 FEET TO A SET 1/2” IRON ROD WITH “CUDE”
CAP;
THENCE, S 20°18'23" E, WITH THE COMMON LINE OF SAID 110.51
ACRE TRACT DESCRIBED IN DOCUMENT 2020077242 AND SAID 114.33 ACRE
TRACT, A DISTANCE OF 552.12 FEET TO A FOUND COTTON SPINDLE;
THENCE, S 21°37'15" E, WITH THE COMMON LINE OF SAID 110.51
ACRE TRACT DESCRIBED IN DOCUMENT 2020077242 AND SAID 114.33 ACRE
TRACT, A DISTANCE OF 3920.82 FEET TO THE POINT OF BEGINNING AND
CONTAINING 355.8 ACRES OF LAND, MORE OR LESS.
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
7972A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7972A.0306 to read as
follows:
Sec. 7972A.0306. 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.
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