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Texas Senate Bill SB2605

Texas 2023 - 88th Regular

Texas Senate Bill SB2605 Compare Versions

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11 S.B. No. 2605
22
33
44 AN ACT
55 relating to the creation of the Knob Creek Municipal Utility
66 District of Bell 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 8001A to read as follows:
1212 CHAPTER 8001A. KNOB CREEK MUNICIPAL UTILITY DISTRICT OF BELL
1313 COUNTY
1414 SUBCHAPTER A. GENERAL PROVISIONS
1515 Sec. 8001A.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 Knob Creek Municipal Utility
2121 District of Bell County.
2222 Sec. 8001A.0102. NATURE OF DISTRICT. The district is a
2323 municipal utility district created under Section 59, Article XVI,
2424 Texas Constitution.
2525 Sec. 8001A.0103. CONFIRMATION AND DIRECTOR 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. 8001A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
3030 temporary directors may not hold an election under Section
3131 8001A.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. 8001A.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. 8001A.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. 8001A.0201. GOVERNING BODY; TERMS. (a) The district
6060 is governed by a board of five elected directors.
6161 (b) Except as provided by Section 8001A.0202, directors
6262 serve staggered four-year terms.
6363 Sec. 8001A.0202. TEMPORARY DIRECTORS. (a) The temporary
6464 board consists of:
6565 (1) Tyler Johnson;
6666 (2) Blake Pitts;
6767 (3) William Hibbard;
6868 (4) Matthew Barge; and
6969 (5) Callie Paysse.
7070 (b) Temporary directors serve until the earlier of:
7171 (1) the date permanent directors are elected under
7272 Section 8001A.0103; or
7373 (2) September 1, 2027.
7474 (c) If permanent directors have not been elected under
7575 Section 8001A.0103 and the terms of the temporary directors have
7676 expired, successor temporary directors shall be appointed or
7777 reappointed as provided by Subsection (d) to serve terms that
7878 expire on the earlier of:
7979 (1) the date permanent directors are elected under
8080 Section 8001A.0103; or
8181 (2) the fourth anniversary of the date of the
8282 appointment or reappointment.
8383 (d) If Subsection (c) applies, the owner or owners of a
8484 majority of the assessed value of the real property in the district
8585 may submit a petition to the commission requesting that the
8686 commission appoint as successor temporary directors the five
8787 persons named in the petition. The commission shall appoint as
8888 successor temporary directors the five persons named in the
8989 petition.
9090 SUBCHAPTER C. POWERS AND DUTIES
9191 Sec. 8001A.0301. GENERAL POWERS AND DUTIES. The district
9292 has the powers and duties necessary to accomplish the purposes for
9393 which the district is created.
9494 Sec. 8001A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
9595 DUTIES. The district has the powers and duties provided by the
9696 general law of this state, including Chapters 49 and 54, Water Code,
9797 applicable to municipal utility districts created under Section 59,
9898 Article XVI, Texas Constitution.
9999 Sec. 8001A.0303. AUTHORITY FOR ROAD PROJECTS. Under
100100 Section 52, Article III, Texas Constitution, the district may
101101 design, acquire, construct, finance, issue bonds for, improve,
102102 operate, maintain, and convey to this state, a county, or a
103103 municipality for operation and maintenance macadamized, graveled,
104104 or paved roads, or improvements, including storm drainage, in aid
105105 of those roads.
106106 Sec. 8001A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
107107 road project must meet all applicable construction standards,
108108 zoning and subdivision requirements, and regulations of each
109109 municipality in whose corporate limits or extraterritorial
110110 jurisdiction the road project is located.
111111 (b) If a road project is not located in the corporate limits
112112 or extraterritorial jurisdiction of a municipality, the road
113113 project must meet all applicable construction standards,
114114 subdivision requirements, and regulations of each county in which
115115 the road project is located.
116116 (c) If the state will maintain and operate the road, the
117117 Texas Transportation Commission must approve the plans and
118118 specifications of the road project.
119119 Sec. 8001A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
120120 ORDINANCE OR RESOLUTION. The district shall comply with all
121121 applicable requirements of any ordinance or resolution that is
122122 adopted under Section 54.016 or 54.0165, Water Code, and that
123123 consents to the creation of the district or to the inclusion of land
124124 in the district.
125125 Sec. 8001A.0306. DIVISION OF DISTRICT. (a) The board, on
126126 its own motion or on receipt of a petition signed by the owner or
127127 owners of a majority of the assessed value of the real property in
128128 the district, may adopt an order dividing the district.
129129 (b) An order dividing a district may create one or more new
130130 districts and may provide for the continuation of the district.
131131 (c) An order dividing the district shall:
132132 (1) name any new district;
133133 (2) include the metes and bounds description of the
134134 territory of each of the districts;
135135 (3) appoint temporary directors for any new district;
136136 and
137137 (4) provide for the division of assets and liabilities
138138 between the districts.
139139 (d) The board may adopt an order dividing the district
140140 before or after the date the board holds an election to confirm the
141141 district's creation.
142142 (e) The district may be divided only if the district:
143143 (1) has never issued any bonds; and
144144 (2) is not imposing ad valorem taxes.
145145 (f) A new district created by the division of the district
146146 may not, at the time the new district is created, contain any land
147147 outside the area described by Section 2 of the Act enacting this
148148 chapter.
149149 (g) On or before the 30th day after the date of adoption of
150150 an order dividing the district, the district shall file the order
151151 with the commission and record the order in the real property
152152 records of each county in which the district is located.
153153 (h) This chapter applies to any new district created by the
154154 division of the district, and a new district has all the powers and
155155 duties of the district.
156156 (i) A new district created by the division of the district
157157 shall hold a confirmation and directors' election.
158158 (j) If the creation of the new district is confirmed, the
159159 new district shall provide the election date and results to the
160160 commission.
161161 (k) A new district created by the division of the district
162162 must hold an election as required by this chapter to obtain voter
163163 approval before the district may impose a maintenance tax or issue
164164 bonds payable wholly or partly from ad valorem taxes.
165165 (l) The district may continue to rely on confirmation,
166166 directors', bond, or tax elections held prior to the division.
167167 (m) Municipal consent to the creation of the district and to
168168 the inclusion of land in the district acts as municipal consent to
169169 the creation of any new district created by the division of the
170170 district and to the inclusion of land in the new district.
171171 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
172172 Sec. 8001A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
173173 The district may issue, without an election, bonds and other
174174 obligations secured by:
175175 (1) revenue other than ad valorem taxes; or
176176 (2) contract payments described by Section
177177 8001A.0403.
178178 (b) The district must hold an election in the manner
179179 provided by Chapters 49 and 54, Water Code, to obtain voter approval
180180 before the district may impose an ad valorem tax or issue bonds
181181 payable from ad valorem taxes.
182182 (c) The district may not issue bonds payable from ad valorem
183183 taxes to finance a road project unless the issuance is approved by a
184184 vote of a two-thirds majority of the district voters voting at an
185185 election held for that purpose.
186186 Sec. 8001A.0402. OPERATION AND MAINTENANCE TAX. (a) If
187187 authorized at an election held under Section 8001A.0401, the
188188 district may impose an operation and maintenance tax on taxable
189189 property in the district in accordance with Section 49.107, Water
190190 Code.
191191 (b) The board shall determine the tax rate. The rate may not
192192 exceed the rate approved at the election.
193193 Sec. 8001A.0403. CONTRACT TAXES. (a) In accordance with
194194 Section 49.108, Water Code, the district may impose a tax other than
195195 an operation and maintenance tax and use the revenue derived from
196196 the tax to make payments under a contract after the provisions of
197197 the contract have been approved by a majority of the district voters
198198 voting at an election held for that purpose.
199199 (b) A contract approved by the district voters may contain a
200200 provision stating that the contract may be modified or amended by
201201 the board without further voter approval.
202202 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
203203 Sec. 8001A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
204204 OBLIGATIONS. The district may issue bonds or other obligations
205205 payable wholly or partly from ad valorem taxes, impact fees,
206206 revenue, contract payments, grants, or other district money, or any
207207 combination of those sources, to pay for any authorized district
208208 purpose.
209209 Sec. 8001A.0502. TAXES FOR BONDS. At the time the district
210210 issues bonds payable wholly or partly from ad valorem taxes, the
211211 board shall provide for the annual imposition of a continuing
212212 direct ad valorem tax, without limit as to rate or amount, while all
213213 or part of the bonds are outstanding as required and in the manner
214214 provided by Sections 54.601 and 54.602, Water Code.
215215 Sec. 8001A.0503. BONDS FOR ROAD PROJECTS. At the time of
216216 issuance, the total principal amount of bonds or other obligations
217217 issued or incurred to finance road projects and payable from ad
218218 valorem taxes may not exceed one-fourth of the assessed value of the
219219 real property in the district.
220220 SECTION 2. The Knob Creek Municipal Utility District of
221221 Bell County initially includes all the territory contained in the
222222 following area:
223223 BEING a tract of land situated in the Maximo Moreno Survey, Abstract
224224 Number 14, Bell County, Texas, and being all of the following
225225 tracts: Tract 1- called 125.579 acres, Tract 2- called 4.701 acres,
226226 Tract 3- called 10.062 acres, Tract 5- called 152.50 acres, Tract
227227 6- called 131.48 acres, Tract 7- called 65.000 acres, Tract
228228 8- called 73.02 acres and Tract 10- called 114.1 acres as described
229229 in deed to KJR Holdings, LLC as recorded in Document Number
230230 2011012311, Official Public Records of Bell County, Texas and being
231231 more particularly described as follows:
232232 BEGINNING at point at the north corner of said 73.02 acre tract;
233233 THENCE South 73°24'21" East, 2,019.96 feet to a point for the
234234 northeast corner of said 73.02 acre tract;
235235 THENCE along the southeast line of said 73.02 acre tract as follows:
236236 South 12°17'49" West, 134.29 feet to a point for corner;
237237 South 17°47'16" East, 326.63 feet to a point for corner;
238238 South 12°11'33" West, 1,041.53 feet to a point for corner;
239239 THENCE South 18°34'22" West, 29.50 feet to a point for corner;
240240 THENCE South 13°07'02" West, 36.05 feet to a point for corner;
241241 THENCE South 71°39'43" East, 200.84 feet to a point for corner;
242242 THENCE South 72°08'41" East, 180.11 feet to a point for corner;
243243 THENCE South 72°21'11" East, 216.15 feet to a point for corner;
244244 THENCE North 13°05'19" East, 49.14 feet to a point for corner;
245245 THENCE South 75°16'28" East, 859.36 feet to a point for the east
246246 corner of said 125.579 acre tract;
247247 THENCE along the southeast line of said 125.579 acre tract as
248248 follows:
249249 South 17°16'44" West, 1,282.07 feet to a point for corner;
250250 South 23°38'47" West, 244.19 feet to a point for the south corner of
251251 said 125.579 acre tract;
252252 THENCE North 71°46'28" West, 1,075.06 feet along the southwest line
253253 of said 125.579 acre tract to a point for the east corner of said
254254 131.48 acre tract;
255255 THENCE along the east line of said 131.48 acre tract as follows:
256256 South 17°52'28" West, 2,487.10 feet to a point for corner;
257257 North 72°47'07" West, 542.05 feet to a point for corner;
258258 South 17°52'28" West, 1,625.55 feet to a point for the south corner
259259 of said 131.48 acre tract;
260260 THENCE North 72°47'07" West, 1,048.45 feet along the southwest line
261261 of said 131.48 acre tract to a point for the west corner of said
262262 131.48 acre tract, said point also being the south corner of said
263263 152.50 acre tract;
264264 THENCE North 72°26'52" West, 1,634.64 feet along the southwest line
265265 of said 152.50 acre tract to a point for the most southerly
266266 southwest corner of said 152.50 acre tract;
267267 THENCE North 17°33'08" East, 733.92 feet to a point for corner;
268268 THENCE North 72°26'52" West, 2,051.24 feet to a point for the most
269269 westerly southwest corner of said 152.50 acre tract;
270270 THENCE North 17°02'03" East, 3,373.21 feet to a point for the north
271271 corner of said 114.1 acre tract;
272272 THENCE along the northeast line of said 114.1 acre tract as follows:
273273 South 72°55'11" East, 1,008.23 feet to a point for corner;
274274 South 72°20'36" East, 806.11 feet to a point for the east corner of
275275 said 114.1 acre tract, said point being the north corner of said
276276 65.000 acre tract;
277277 THENCE South 71°23'38" East, 253.39 feet along the northeast line of
278278 said 65.000 acre tract to a point for corner the north corner of
279279 said 4.701 acre tract;
280280 THENCE South 72°37'07" East, 606.56 feet to a point for the east
281281 corner of said 4.701 acre tract;
282282 THENCE South 72°39'31" East, 810.18 feet to a point for the east
283283 corner of said 65.000 acre tract, said point also being the north
284284 corner of said 10.062 acre tract corner;
285285 THENCE South 72°33'56" East, 232.00 feet to a point for the east
286286 corner of said 10.062 acre tract, said point also being in the
287287 northwest line of said 131.48 acre tract;
288288 THENCE North 18°14'08" East, 26.76 feet to a point for corner, said
289289 point being in the southwest line of said 125.579 acre tract;
290290 THENCE North 71°45'52" West, 1,034.12 feet along the southwest line
291291 of said 125.579 acre tract to a point for the west corner of said
292292 125.579 acre tract;
293293 THENCE North 17°15'34" East, 1,424.27 feet along the northwest line
294294 of said 125.579 acre tract to a point for the north corner of said
295295 125.579 acre tract, said point also being the west corner of said
296296 73.02 acre tract;
297297 THENCE North 16°39'01" East, 1,438.09 feet along the northwest line
298298 of said 73.02 acre tract to the POINT OF BEGINNING and containing
299299 28,084,968 square feet or 644.7422 acres of land.
300300 SECTION 3. (a) The legal notice of the intention to
301301 introduce this Act, setting forth the general substance of this
302302 Act, has been published as provided by law, and the notice and a
303303 copy of this Act have been furnished to all persons, agencies,
304304 officials, or entities to which they are required to be furnished
305305 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
306306 Government Code.
307307 (b) The governor, one of the required recipients, has
308308 submitted the notice and Act to the Texas Commission on
309309 Environmental Quality.
310310 (c) The Texas Commission on Environmental Quality has filed
311311 its recommendations relating to this Act with the governor, the
312312 lieutenant governor, and the speaker of the house of
313313 representatives within the required time.
314314 (d) All requirements of the constitution and laws of this
315315 state and the rules and procedures of the legislature with respect
316316 to the notice, introduction, and passage of this Act are fulfilled
317317 and accomplished.
318318 SECTION 4. (a) If this Act does not receive a two-thirds
319319 vote of all the members elected to each house, Subchapter C, Chapter
320320 8001A, Special District Local Laws Code, as added by Section 1 of
321321 this Act, is amended by adding Section 8001A.0307 to read as
322322 follows:
323323 Sec. 8001A.0307. NO EMINENT DOMAIN POWER. The district may
324324 not exercise the power of eminent domain.
325325 (b) This section is not intended to be an expression of a
326326 legislative interpretation of the requirements of Section 17(c),
327327 Article I, Texas Constitution.
328328 SECTION 5. This Act takes effect September 1, 2023.
329329 ______________________________ ______________________________
330330 President of the Senate Speaker of the House
331331 I hereby certify that S.B. No. 2605 passed the Senate on
332332 May 3, 2023, by the following vote: Yeas 27, Nays 3, one present
333333 not voting.
334334 ______________________________
335335 Secretary of the Senate
336336 I hereby certify that S.B. No. 2605 passed the House on
337337 May 24, 2023, by the following vote: Yeas 101, Nays 37, one
338338 present not voting.
339339 ______________________________
340340 Chief Clerk of the House
341341 Approved:
342342 ______________________________
343343 Date
344344 ______________________________
345345 Governor