Texas 2023 - 88th Regular

Texas Senate Bill SB2602 Compare Versions

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1	1	88R21094 LRM-F
2	2	By: Schwertner S.B. No. 2602
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Sandow Municipal Utility District
8	8	No. 1; granting a limited power of eminent domain; providing
9	9	authority to issue bonds; providing authority to impose
10	10	assessments, fees, and taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 6, Special District Local Laws
13	13	Code, is amended by adding Chapter 7986A to read as follows:
14	14	CHAPTER 7986A. SANDOW MUNICIPAL UTILITY DISTRICT NO. 1
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 7986A.0101. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the district's board of directors.
18	18	(2) "Commission" means the Texas Commission on
19	19	Environmental Quality.
20	20	(3) "Director" means a board member.
21	21	(4) "District" means the Sandow Municipal Utility
22	22	District No. 1.
23	23	Sec. 7986A.0102. NATURE OF DISTRICT. The district is a
24	24	municipal utility district created under Section 59, Article XVI,
25	25	Texas Constitution.
26	26	Sec. 7986A.0103. CONFIRMATION AND DIRECTOR ELECTION
27	27	REQUIRED. The temporary directors shall hold an election to
28	28	confirm the creation of the district and to elect five permanent
29	29	directors as provided by Section 49.102, Water Code.
30	30	Sec. 7986A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
31	31	temporary directors may not hold an election under Section
32	32	7986A.0103 until each municipality in whose corporate limits or
33	33	extraterritorial jurisdiction the district is located has
34	34	consented by ordinance or resolution to the creation of the
35	35	district and to the inclusion of land in the district as required by
36	36	applicable law.
37	37	Sec. 7986A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
38	38	(a) The district is created to serve a public purpose and benefit.
39	39	(b) The district is created to accomplish the purposes of:
40	40	(1) a municipal utility district as provided by
41	41	general law and Section 59, Article XVI, Texas Constitution; and
42	42	(2) Section 52, Article III, Texas Constitution, that
43	43	relate to the construction, acquisition, improvement, operation,
44	44	or maintenance of macadamized, graveled, or paved roads, or
45	45	improvements, including storm drainage, in aid of those roads.
46	46	Sec. 7986A.0106. INITIAL DISTRICT TERRITORY. (a) The
47	47	district is initially composed of the territory described by
48	48	Section 2 of the Act enacting this chapter.
49	49	(b) The boundaries and field notes contained in Section 2 of
50	50	the Act enacting this chapter form a closure. A mistake made in the
51	51	field notes or in copying the field notes in the legislative process
52	52	does not affect the district's:
53	53	(1) organization, existence, or validity;
54	54	(2) right to issue any type of bond for the purposes
55	55	for which the district is created or to pay the principal of and
56	56	interest on a bond;
57	57	(3) right to impose a tax; or
58	58	(4) legality or operation.
59	59	SUBCHAPTER B. BOARD OF DIRECTORS
60	60	Sec. 7986A.0201. GOVERNING BODY; TERMS. (a) The district
61	61	is governed by a board of five elected directors.
62	62	(b) Except as provided by Section 7986A.0202, directors
63	63	serve staggered four-year terms.
64	64	Sec. 7986A.0202. TEMPORARY DIRECTORS. (a) On or after the
65	65	effective date of the Act enacting this chapter, the owner or owners
66	66	of a majority of the assessed value of the real property in the
67	67	district may submit a petition to the commission requesting that
68	68	the commission appoint as temporary directors the five persons
69	69	named in the petition. The commission shall appoint as temporary
70	70	directors the five persons named in the petition.
71	71	(b) Temporary directors serve until the earlier of:
72	72	(1) the date permanent directors are elected under
73	73	Section 7986A.0103; or
74	74	(2) the fourth anniversary of the effective date of
75	75	the Act enacting this chapter.
76	76	(c) If permanent directors have not been elected under
77	77	Section 7986A.0103 and the terms of the temporary directors have
78	78	expired, successor temporary directors shall be appointed or
79	79	reappointed as provided by Subsection (d) to serve terms that
80	80	expire on the earlier of:
81	81	(1) the date permanent directors are elected under
82	82	Section 7986A.0103; or
83	83	(2) the fourth anniversary of the date of the
84	84	appointment or reappointment.
85	85	(d) If Subsection (c) applies, the owner or owners of a
86	86	majority of the assessed value of the real property in the district
87	87	may submit a petition to the commission requesting that the
88	88	commission appoint as successor temporary directors the five
89	89	persons named in the petition. The commission shall appoint as
90	90	successor temporary directors the five persons named in the
91	91	petition.
92	92	SUBCHAPTER C. POWERS AND DUTIES
93	93	Sec. 7986A.0301. GENERAL POWERS AND DUTIES. The district
94	94	has the powers and duties necessary to accomplish the purposes for
95	95	which the district is created.
96	96	Sec. 7986A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
97	97	DUTIES. The district has the powers and duties provided by the
98	98	general law of this state, including Chapters 49 and 54, Water Code,
99	99	applicable to municipal utility districts created under Section 59,
100	100	Article XVI, Texas Constitution.
101	101	Sec. 7986A.0303. AUTHORITY FOR ROAD PROJECTS. Under
102	102	Section 52, Article III, Texas Constitution, the district may
103	103	design, acquire, construct, finance, issue bonds for, improve,
104	104	operate, maintain, and convey to this state, a county, or a
105	105	municipality for operation and maintenance macadamized, graveled,
106	106	or paved roads, or improvements, including storm drainage, in aid
107	107	of those roads.
108	108	Sec. 7986A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
109	109	road project must meet all applicable construction standards,
110	110	zoning and subdivision requirements, and regulations of each
111	111	municipality in whose corporate limits or extraterritorial
112	112	jurisdiction the road project is located.
113	113	(b) If a road project is not located in the corporate limits
114	114	or extraterritorial jurisdiction of a municipality, the road
115	115	project must meet all applicable construction standards,
116	116	subdivision requirements, and regulations of each county in which
117	117	the road project is located.
118	118	(c) If the state will maintain and operate the road, the
119	119	Texas Transportation Commission must approve the plans and
120	120	specifications of the road project.
121	121	Sec. 7986A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
122	122	ORDINANCE OR RESOLUTION. The district shall comply with all
123	123	applicable requirements of any ordinance or resolution that is
124	124	adopted under Section 54.016 or 54.0165, Water Code, and that
125	125	consents to the creation of the district or to the inclusion of land
126	126	in the district.
127	127	Sec. 7986A.0306. DIVISION OF DISTRICT. (a) The board, on
128	128	its own motion or on receipt of a petition signed by the owner or
129	129	owners of a majority of the assessed value of the real property in
130	130	the district, may adopt an order dividing the district.
131	131	(b) An order dividing a district may create one or more new
132	132	districts and may provide for the continuation of the district.
133	133	(c) An order dividing the district shall:
134	134	(1) name any new district;
135	135	(2) include the metes and bounds description of the
136	136	territory of each of the districts;
137	137	(3) appoint temporary directors for any new district;
138	138	and
139	139	(4) provide for the division of assets and liabilities
140	140	between the districts.
141	141	(d) The board may adopt an order dividing the district
142	142	before or after the date the board holds an election to confirm the
143	143	district's creation.
144	144	(e) The district may be divided only if the district:
145	145	(1) has never issued any bonds; and
146	146	(2) is not imposing ad valorem taxes.
147	147	(f) A new district created by the division of the district
148	148	may not, at the time the new district is created, contain any land
149	149	outside the area described by Section 2 of the Act enacting this
150	150	chapter.
151	151	(g) On or before the 30th day after the date of adoption of
152	152	an order dividing the district, the district shall file the order
153	153	with the commission and record the order in the real property
154	154	records of each county in which the district is located.
155	155	(h) This chapter applies to any new district created by the
156	156	division of the district, and a new district has all the powers and
157	157	duties of the district.
158	158	(i) A new district created by the division of the district
159	159	shall hold a confirmation and directors' election.
160	160	(j) If the creation of the new district is confirmed, the
161	161	new district shall provide the election date and results to the
162	162	commission.
163	163	(k) A new district created by the division of the district
164	164	must hold an election as required by this chapter to obtain voter
165	165	approval before the district may impose a maintenance tax or issue
166	166	bonds payable wholly or partly from ad valorem taxes.
167	167	(l) The district may continue to rely on confirmation,
168	168	directors', bond, or tax elections held prior to the division.
169	169	(m) Municipal consent to the creation of the district and to
170	170	the inclusion of land in the district acts as municipal consent to
171	171	the creation of any new district created by the division of the
172	172	district and to the inclusion of land in the new district.
173	173	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
174	174	Sec. 7986A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
175	175	The district may issue, without an election, bonds and other
176	176	obligations secured by:
177	177	(1) revenue other than ad valorem taxes; or
178	178	(2) contract payments described by
179	179	Section 7986A.0403.
180	180	(b) The district must hold an election in the manner
181	181	provided by Chapters 49 and 54, Water Code, to obtain voter approval
182	182	before the district may impose an ad valorem tax or issue bonds
183	183	payable from ad valorem taxes.
184	184	(c) The district may not issue bonds payable from ad valorem
185	185	taxes to finance a road project unless the issuance is approved by a
186	186	vote of a two-thirds majority of the district voters voting at an
187	187	election held for that purpose.
188	188	Sec. 7986A.0402. OPERATION AND MAINTENANCE TAX. (a) If
189	189	authorized at an election held under Section 7986A.0401, the
190	190	district may impose an operation and maintenance tax on taxable
191	191	property in the district in accordance with Section 49.107, Water
192	192	Code.
193	193	(b) The board shall determine the tax rate. The rate may not
194	194	exceed the rate approved at the election.
195	195	Sec. 7986A.0403. CONTRACT TAXES. (a) In accordance with
196	196	Section 49.108, Water Code, the district may impose a tax other than
197	197	an operation and maintenance tax and use the revenue derived from
198	198	the tax to make payments under a contract after the provisions of
199	199	the contract have been approved by a majority of the district voters
200	200	voting at an election held for that purpose.
201	201	(b) A contract approved by the district voters may contain a
202	202	provision stating that the contract may be modified or amended by
203	203	the board without further voter approval.
204	204	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
205	205	Sec. 7986A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
206	206	OBLIGATIONS. The district may issue bonds or other obligations
207	207	payable wholly or partly from ad valorem taxes, impact fees,
208	208	revenue, contract payments, grants, or other district money, or any
209	209	combination of those sources, to pay for any authorized district
210	210	purpose.
211	211	Sec. 7986A.0502. TAXES FOR BONDS. At the time the district
212	212	issues bonds payable wholly or partly from ad valorem taxes, the
213	213	board shall provide for the annual imposition of a continuing
214	214	direct ad valorem tax, without limit as to rate or amount, while all
215	215	or part of the bonds are outstanding as required and in the manner
216	216	provided by Sections 54.601 and 54.602, Water Code.
217	217	Sec. 7986A.0503. BONDS FOR ROAD PROJECTS. At the time of
218	218	issuance, the total principal amount of bonds or other obligations
219	219	issued or incurred to finance road projects and payable from ad
220	220	valorem taxes may not exceed one-fourth of the assessed value of the
221	221	real property in the district.
222	222	SECTION 2. The Sandow Municipal Utility District No. 1
223	223	initially includes all the territory contained in the following
224	224	area:
225	225	BEING A 201.0 ACRES TRACT OF LAND SITUATED IN THE ELIZABETH
226	226	MILBOURN SURVEY, ABSTRACT 414 AND OLIVER FARNSWORTH SURVEY,
227	227	ABSTRACT 163, MILAM COUNTY, TEXAS; AND BEING A PORTION OF A CALLED
228	228	15,022.733 ACRES TRACT OF LAND DESIGNATED AS "TRACT 018-R3" AND
229	229	DESCRIBED TO SLR PROPERTY I, LP, AS SHOWN ON INSTRUMENT RECORDED
230	230	UNDER DOCUMENT NO. 2021-5108 OF THE OFFICIAL PUBLIC RECORDS OF
231	231	MILAM COUNTY, TEXAS (O.P.R.M.C.T.); AND BEING MORE PARTICULARLY
232	232	DESCRIBED AS FOLLOWS:
233	233	BEGINNING IN THE WEST BOUNDARY LINE OF SAID TRACT 018-R3 AND
234	234	FOR THE SOUTHEAST CORNER OF A CALLED 61.006 ACRES TRACT OF LAND
235	235	DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON INSTRUMENT RECORDED UNDER
236	236	DOCUMENT NO. 2022-5130 OF THE OFFICIAL PUBLIC RECORDS OF MILAM
237	237	COUNTY, TEXAS (O.P.R.M.C.T.);
238	238	THENCE, WITH SAID WEST BOUNDARY LINE OF TRACT 018-R3, SAME
239	239	BEING THE EAST BOUNDARY LINE OF SAID 61.006 ACRES TRACT, THE
240	240	FOLLOWING TWO (2) COURSES AND DISTANCES:
241	241	1. NORTH 21°10'24" WEST, A DISTANCE OF 2,162.68 FEET;
242	242	2. NORTH 68°55'41" EAST, A DISTANCE OF 1,308.45 FEET;
243	243	THENCE, NORTH 21°29'53" WEST, CONTINUING WITH SAID WEST
244	244	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID EAST BOUNDARY LINE OF
245	245	THE 61.006 ACRES TRACT, THE EAST BOUNDARY LINE OF A CALLED 28.718
246	246	ACRES TRACT OF LAND DESCRIBED TO RUSSELL D. LEWIS AND LISA LEWIS, AS
247	247	SHOWN ON INSTRUMENT RECORDED UNDER DOCUMENT NO. 2020-1490 OF THE
248	248	O.P.R.M.C.T., AND THE EAST BOUNDARY LINE OF A CALLED 20.0 ACRES
249	249	TRACT OF LAND DESCRIBED TO KREGG YOUNT, AS SHOWN ON INSTRUMENT
250	250	RECORDED UNDER DOCUMENT NO. 1129-451 OF THE O.P.R.M.C.T., A
251	251	DISTANCE OF 1,916.67 FEET TO THE SOUTH BOUNDARY LINE OF A CALLED
252	252	27.527 ACRES TRACT OF LAND DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON
253	253	INSTRUMENT RECORDED UNDER DOCUMENT NO. 2022-5130 OF THE
254	254	O.P.R.M.C.T.;
255	255	THENCE, NORTH 69°10'24" EAST, CONTINUING WITH SAID WEST
256	256	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID SOUTH BOUNDARY LINE
257	257	OF 27.527 ACRES TRACT AND THE SOUTH BOUNDARY LINE OF A CALLED 73.703
258	258	ACRES TRACT OF LAND DESCRIBED TO WILFORD ALLEN TATE, AS SHOWN ON
259	259	INSTRUMENT RECORDED UNDER DOCUMENT NO. 1264-251 OF THE
260	260	O.P.R.M.C.T., A DISTANCE OF 1,809.84 FEET TO THE SOUTHEAST CORNER
261	261	OF SAID 73.703 ACRES TRACT;
262	262	THENCE, NORTH 20°34'38" WEST, CONTINUING WITH SAID WEST
263	263	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE EAST BOUNDARY LINE OF
264	264	SAID 73.703 ACRES TRACT, A DISTANCE OF 996.83 FEET TO THE SOUTHWEST
265	265	CORNER OF A CALLED 150.0 ACRES TRACT OF LAND DESCRIBED TO HOBBS
266	266	MARTIN D ESTATE (RECORDING INFORMATION UNKNOWN);
267	267	THENCE, NORTH 68°13'17" EAST, DEPARTING SAID EAST BOUNDARY
268	268	LINE OF THE 73.703 ACRES TRACT OF LAND, CONTINUING WITH SAID WEST
269	269	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE SOUTH BOUNDARY LINE OF
270	270	SAID 150.0 ACRES TRACT, DISTANCE OF 1,314.13 FEET TO THE SOUTHEAST
271	271	CORNER OF SAID 150.0 ACRE TRACT;
272	272	THENCE, DEPARTING SAID WEST BOUNDARY LINE OF TRACT 018-R3 AND
273	273	SAID SOUTH BOUNDARY LINE OF THE 150.0 ACRES TRACT, OVER AND ACROSS
274	274	SAID TRACT 018-R3, THE FOLLOWING THREE (3) COURSES AND DISTANCES:
275	275	1. SOUTH 20°34'38" EAST, A DISTANCE OF 1,234.87 FEET;
276	276	2. SOUTH 25°30'16" WEST, A DISTANCE OF 3,635.53 FEET;
277	277	3. SOUTH 31°36'25" WEST, A DISTANCE OF 2,227.86 FEET TO THE POINT
278	278	OF BEGINNING AND CONTAINING 201.0 ACRES OF LAND, MORE OR LESS, IN
279	279	MILAM COUNTY, TEXAS. THIS DOCUMENT WAS PREPARED IN THE OFFICE OF
280	280	KIMLEY-HORN INC. IN AUSTIN, TEXAS.
281	281	SECTION 3. (a) The legal notice of the intention to
282	282	introduce this Act, setting forth the general substance of this
283	283	Act, has been published as provided by law, and the notice and a
284	284	copy of this Act have been furnished to all persons, agencies,
285	285	officials, or entities to which they are required to be furnished
286	286	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
287	287	Government Code.
288	288	(b) The governor, one of the required recipients, has
289	289	submitted the notice and Act to the Texas Commission on
290	290	Environmental Quality.
291	291	(c) The Texas Commission on Environmental Quality has filed
292	292	its recommendations relating to this Act with the governor, the
293	293	lieutenant governor, and the speaker of the house of
294	294	representatives within the required time.
295	295	(d) All requirements of the constitution and laws of this
296	296	state and the rules and procedures of the legislature with respect
297	297	to the notice, introduction, and passage of this Act are fulfilled
298	298	and accomplished.
299	299	SECTION 4. (a) If this Act does not receive a two-thirds
300	300	vote of all the members elected to each house, Subchapter C, Chapter
301	301	7986A, Special District Local Laws Code, as added by Section 1 of
302	302	this Act, is amended by adding Section 7986A.0307 to read as
303	303	follows:
304	304	Sec. 7986A.0307. NO EMINENT DOMAIN POWER. The district may
305	305	not exercise the power of eminent domain.
306	306	(b) This section is not intended to be an expression of a
307	307	legislative interpretation of the requirements of Section 17(c),
308	308	Article I, Texas Constitution.
309	309	SECTION 5. This Act takes effect immediately if it receives
310	310	a vote of two-thirds of all the members elected to each house, as
311	311	provided by Section 39, Article III, Texas Constitution. If this
312	312	Act does not receive the vote necessary for immediate effect, this
313	313	Act takes effect September 1, 2023.