Texas 2023 - 88th Regular

Texas House Bill HB5411 Compare Versions

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Version 2 (New)

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1	1	H.B. No. 5411
2	2
3	3
4	4	AN ACT
5	5	relating to the board of directors and powers and duties of the
6	6	Twinwood Municipal Utility District No. 1; providing authority to
7	7	issue bonds; providing authority to impose assessments, fees, and
8	8	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 8026A to read as follows:
12	12	CHAPTER 8026A. TWINWOOD MUNICIPAL UTILITY DISTRICT NO. 1
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 8026A.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 Twinwood Municipal Utility
20	20	District No. 1.
21	21	Sec. 8026A.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. 8026A.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. 8026A.0104. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
29	29	(a) The district is created to serve a public purpose and benefit.
30	30	(b) The district is created to accomplish the purposes of:
31	31	(1) a municipal utility district as provided by
32	32	general law and Section 59, Article XVI, Texas Constitution; and
33	33	(2) Section 52, Article III, Texas Constitution, that
34	34	relate to the construction, acquisition, improvement, operation,
35	35	or maintenance of macadamized, graveled, or paved roads, or
36	36	improvements, including storm drainage, in aid of those roads.
37	37	SUBCHAPTER B. BOARD OF DIRECTORS
38	38	Sec. 8026A.0201. GOVERNING BODY; TERMS. (a) The district
39	39	is governed by a board of five elected directors.
40	40	(b) Except as provided by Section 8026A.0202, directors
41	41	serve staggered four-year terms.
42	42	Sec. 8026A.0202. TEMPORARY DIRECTORS. (a) The temporary
43	43	board consists of:
44	44	(1) LaKeta Morris;
45	45	(2) Brian Alexander;
46	46	(3) Jennifer Ramirez;
47	47	(4) Kyle Jones; and
48	48	(5) John Northington Jr.
49	49	(b) Temporary directors serve until the earlier of:
50	50	(1) the date permanent directors are elected under
51	51	Section 8026A.0103; or
52	52	(2) the fourth anniversary of the effective date of
53	53	the Act enacting this chapter.
54	54	(c) If permanent directors have not been elected under
55	55	Section 8026A.0103 and the terms of the temporary directors have
56	56	expired, successor temporary directors shall be appointed or
57	57	reappointed as provided by Subsection (d) to serve terms that
58	58	expire on the earlier of:
59	59	(1) the date permanent directors are elected under
60	60	Section 8026A.0103; or
61	61	(2) the fourth anniversary of the date of the
62	62	appointment or reappointment.
63	63	(d) If Subsection (c) applies, the owner or owners of a
64	64	majority of the assessed value of the real property in the district
65	65	may submit a petition to the commission requesting that the
66	66	commission appoint as successor temporary directors the five
67	67	persons named in the petition. The commission shall appoint as
68	68	successor temporary directors the five persons named in the
69	69	petition.
70	70	SUBCHAPTER C. POWERS AND DUTIES
71	71	Sec. 8026A.0301. GENERAL POWERS AND DUTIES. The district
72	72	has the powers and duties necessary to accomplish the purposes for
73	73	which the district is created.
74	74	Sec. 8026A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
75	75	DUTIES. The district has the powers and duties provided by the
76	76	general law of this state, including Chapters 49 and 54, Water Code,
77	77	applicable to municipal utility districts created under Section 59,
78	78	Article XVI, Texas Constitution.
79	79	Sec. 8026A.0303. AUTHORITY FOR ROAD PROJECTS. Under
80	80	Section 52, Article III, Texas Constitution, the district may
81	81	design, acquire, construct, finance, issue bonds for, improve,
82	82	operate, maintain, and convey to this state, a county, or a
83	83	municipality for operation and maintenance macadamized, graveled,
84	84	or paved roads, or improvements, including storm drainage, in aid
85	85	of those roads.
86	86	Sec. 8026A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
87	87	road project must meet all applicable construction standards,
88	88	zoning and subdivision requirements, and regulations of each
89	89	municipality in whose corporate limits or extraterritorial
90	90	jurisdiction the road project is located.
91	91	(b) If a road project is not located in the corporate limits
92	92	or extraterritorial jurisdiction of a municipality, the road
93	93	project must meet all applicable construction standards,
94	94	subdivision requirements, and regulations of each county in which
95	95	the road project is located.
96	96	(c) If the state will maintain and operate the road, the
97	97	Texas Transportation Commission must approve the plans and
98	98	specifications of the road project.
99	99	Sec. 8026A.0305. DIVISION OF DISTRICT. (a) The board, on
100	100	its own motion or on receipt of a petition signed by the owner or
101	101	owners of a majority of the assessed value of the real property in
102	102	the district, may adopt an order dividing the district.
103	103	(b) An order dividing a district may create one or more new
104	104	districts and may provide for the continuation of the district.
105	105	(c) An order dividing the district shall:
106	106	(1) name any new district;
107	107	(2) include the metes and bounds description of the
108	108	territory of each of the districts;
109	109	(3) appoint temporary directors for any new district;
110	110	and
111	111	(4) provide for the division of assets and liabilities
112	112	between the districts.
113	113	(d) The board may adopt an order dividing the district
114	114	before or after the date the board holds an election to confirm the
115	115	district's creation.
116	116	(e) The district may be divided only if the district:
117	117	(1) has never issued any bonds; and
118	118	(2) is not imposing ad valorem taxes.
119	119	(f) A new district created by the division of the district
120	120	may not, at the time the new district is created, contain any land
121	121	outside the territory of the district as it existed on January 1,
122	122	2023.
123	123	(g) On or before the 30th day after the date of adoption of
124	124	an order dividing the district, the district shall file the order
125	125	with the commission and record the order in the real property
126	126	records of each county in which the district is located.
127	127	(h) This chapter applies to any new district created by the
128	128	division of the district, and a new district has all the powers and
129	129	duties of the district.
130	130	(i) A new district created by the division of the district
131	131	shall hold a confirmation and directors' election.
132	132	(j) If the creation of the new district is confirmed, the
133	133	new district shall provide the election date and results to the
134	134	commission.
135	135	(k) A new district created by the division of the district
136	136	must hold an election as required by this chapter to obtain voter
137	137	approval before the district may impose a maintenance tax or issue
138	138	bonds payable wholly or partly from ad valorem taxes.
139	139	(l) The district may continue to rely on confirmation,
140	140	directors', bond, or tax elections held prior to the division.
141	141	(m) Municipal consent to the creation of the district and to
142	142	the inclusion of land in the district acts as municipal consent to
143	143	the creation of any new district created by the division of the
144	144	district and to the inclusion of land in the new district.
145	145	SUBCHAPTER D. BONDS AND OTHER OBLIGATIONS
146	146	Sec. 8026A.0401. AUTHORITY TO ISSUE BONDS AND OTHER
147	147	OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or
148	148	other obligations payable wholly or partly from ad valorem taxes,
149	149	revenue, contract payments, grants, or other district money, or any
150	150	combination of those sources, to pay for a road project authorized
151	151	by Section 8026A.0303.
152	152	(b) The district may not issue bonds payable from ad valorem
153	153	taxes to finance a road project unless the issuance is approved by a
154	154	vote of a two-thirds majority of the district voters voting at an
155	155	election held for that purpose.
156	156	(c) At the time of issuance, the total principal amount of
157	157	bonds or other obligations issued or incurred to finance road
158	158	projects and payable from ad valorem taxes may not exceed
159	159	one-fourth of the assessed value of the real property in the
160	160	district.
161	161	Sec. 8026A.0402. TAXES FOR BONDS. At the time the district
162	162	issues bonds payable wholly or partly from ad valorem taxes, the
163	163	board shall provide for the annual imposition of a continuing
164	164	direct ad valorem tax, without limit as to rate or amount, while all
165	165	or part of the bonds are outstanding as required and in the manner
166	166	provided by Sections 54.601 and 54.602, Water Code.
167	167	SECTION 2. The Twinwood Municipal Utility District No. 1
168	168	retains all the rights, powers, privileges, authority, duties, and
169	169	functions that it had before the effective date of this Act.
170	170	SECTION 3. (a) The legislature validates and confirms all
171	171	governmental acts and proceedings of the Twinwood Municipal Utility
172	172	District No. 1 that were taken before the effective date of this
173	173	Act.
174	174	(b) This section does not apply to any matter that on the
175	175	effective date of this Act:
176	176	(1) is involved in litigation if the litigation
177	177	ultimately results in the matter being held invalid by a final court
178	178	judgment; or
179	179	(2) has been held invalid by a final court judgment.
180	180	SECTION 4. (a) The legal notice of the intention to
181	181	introduce this Act, setting forth the general substance of this
182	182	Act, has been published as provided by law, and the notice and a
183	183	copy of this Act have been furnished to all persons, agencies,
184	184	officials, or entities to which they are required to be furnished
185	185	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
186	186	Government Code.
187	187	(b) The governor, one of the required recipients, has
188	188	submitted the notice and Act to the Texas Commission on
189	189	Environmental Quality.
190	190	(c) The Texas Commission on Environmental Quality has filed
191	191	its recommendations relating to this Act with the governor, the
192	192	lieutenant governor, and the speaker of the house of
193	193	representatives within the required time.
194	194	(d) All requirements of the constitution and laws of this
195	195	state and the rules and procedures of the legislature with respect
196	196	to the notice, introduction, and passage of this Act are fulfilled
197	197	and accomplished.
198	198	SECTION 5. This Act takes effect immediately if it receives
199	199	a vote of two-thirds of all the members elected to each house, as
200	200	provided by Section 39, Article III, Texas Constitution. If this
201	201	Act does not receive the vote necessary for immediate effect, this
202	202	Act takes effect September 1, 2023.
203	203	______________________________ ______________________________
204	204	President of the Senate Speaker of the House
205	205	I certify that H.B. No. 5411 was passed by the House on May
206	206	12, 2023, by the following vote: Yeas 103, Nays 37, 2 present, not
207	207	voting.
208	208	______________________________
209	209	Chief Clerk of the House
210	210	I certify that H.B. No. 5411 was passed by the Senate on May
211	211	24, 2023, by the following vote: Yeas 28, Nays 3.
212	212	______________________________
213	213	Secretary of the Senate
214	214	APPROVED: _____________________
215	215	Date
216	216	_____________________
217	217	Governor