Texas 2025 - 89th Regular

Texas House Bill HB5555 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Zwiener H.B. No. 5555
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to municipal utility districts; limiting the rate of a
7	9		tax.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Section 209.00591, Property Code, is amended by
10	12		adding Subsection (a-4) to read as follows:
11	13		(a-4) A person may not serve on the board of a property
12	14		owners' association if the person serves as a director of a
13	15		municipal utility district under Chapter 54, Water Code.
14	16		SECTION 2. Subchapter B, Chapter 54, Water Code, is amended
15	17		by adding Section 54.0135 to read as follows:
16	18		Sec. 54.0135. PRE-PETITION NOTICE TO CERTAIN COUNTIES. (a)
17	19		This section applies only to a proposed district described by
18	20		Section 54.0161(a).
19	21		(b) At least 30 days before a petition requesting creation
20	22		of a proposed district is filed with the commission under Section
21	23		54.014, notice must be sent by certified mail to the commissioners
22	24		court of each county in which the proposed district is to be
23	25		located. The notice must:
24	26		(1) be sent to the address of the main county mailbox,
25	27		and the address of each county commissioner and county judge;
26	28		(2) generally describe the boundaries of the land to
27	29		be included in the proposed district, including identifying
28	30		landmarks such as adjacent streets or geographic features such as
29	31		rivers or lakes, and if possible, by metes and bounds or by lot and
30	32		block number if there is a recorded map or plat and survey of the
31	33		area to be included in the district; and
32	34		(3) inform the commissioners court of the right to:
33	35		(A) respond to the notice provided under this
34	36		section;
35	37		(B) review the petition requesting creation of
36	38		the proposed district; and
37	39		(C) submit a written opinion on the creation of
38	40		the proposed district under Section 54.0161.
39	41		(c) Notice under this section must be sent by certified mail
40	42		at least 30 days before the date a petition requesting creation of
41	43		the proposed district is filed with the commission under Section
42	44		54.014.
43	45		SECTION 3. Section 54.015, Water Code, is amended to read as
44	46		follows:
45	47		Sec. 54.015. CONTENTS OF PETITION. The petition shall:
46	48		(1) describe the boundaries of the proposed district
47	49		by metes and bounds or by lot and block number, if there is a
48	50		recorded map or plat and survey of the area;
49	51		(2) state the general nature of the work proposed to be
50	52		done, the necessity for the work, and the cost of the project as
51	53		then estimated by those filing the petition; [and]
52	54		(3) include a name of the district which shall be
53	55		generally descriptive of the locale of the district followed by the
54	56		words Municipal Utility District, or if a district is located
55	57		within one county, it may be designated "______ County Municipal
56	58		Utility District No. ___." (Insert the name of the county and
57	59		proper consecutive number.) The proposed district shall not have
58	60		the same name as any other district in the same county; and
59	61		(4) for a district described by Section 54.0161(a),
60	62		include a copy of the notice described by Section 54.0135.
61	63		SECTION 4. Section 54.0161, Water Code, is amended by
62	64		amending Subsection (a) to read as follows:
63	65		(a) This section applies [only] to a proposed district:
64	66		(1) partly or wholly [all of which is to be] located
65	67		outside the corporate limits of a municipality, including proposed
66	68		districts which overlap more than one county; or
67	69		(2) partly or wholly located inside the
68	70		extraterritorial jurisdiction of a municipality.
69	71		SECTION 5. Section 54.022, Water Code, is amended by adding
70	72		Subsection (d) to read as follows:
71	73		(d) Notwithstanding any other subsection, the district
72	74		shall immediately schedule an election to elect permanent directors
73	75		once 75 percent of the plots under the district's jurisdiction are
74	76		leased sold, or conveyed in some manner.
75	77		SECTION 6. Chapter 54, Water Code, is amended by adding
76	78		Subsection 54.037 to read as follows:
77	79		Sec. 54.037. REVIEW OF CREATION BY A GROUNDWATER
78	80		CONSERVATION DISTRICT. (a) This section applies to a proposed
79	81		district, located in or within five miles of the jurisdiction of a
80	82		groundwater conservation district, as that term is defined by
81	83		Chapter 36.
82	84		(a-1) At least 30 days before a petition requesting creation
83	85		of a proposed district is filed with the commission under Section
84	86		54.014, notice must be sent by certified mail to the groundwater
85	87		conservation district in which the proposed district is to be
86	88		located or in proximity to, The notice must:
87	89		(1) be sent to the mailing address of the groundwater
88	90		conservation district;
89	91		(2) generally describe the boundaries of the land to
90	92		be included in the proposed district, including identifying
91	93		landmarks such as adjacent streets or geographic features such as
92	94		rivers or lakes, and if possible, by metes and bounds or by lot and
93	95		block number if there is a recorded map or plat and survey of the
94	96		area to be included in the district; and
95	97		(3) inform the groundwater conservation district of
96	98		the right to:
97	99		(A) respond to the notice provided under this
98	100		section;
99	101		(B) review the petition requesting creation of
100	102		the proposed district; and
101	103		(C) submit a written opinion on the creation of
102	104		the proposed district under Section 54.0161.
103	105		(a-2) The groundwater conservation district in which the
104	106		district is to be located, or in proximity to, may review the
105	107		petition for creation and other evidence and information relating
106	108		to the proposed district that the groundwater conservation district
107	109		consider necessary. Petitioners for the creation of a district
108	110		shall submit to the groundwater conservation district any relevant
109	111		information requested by the groundwater conservation district.
110	112		(b) In the event the groundwater conservation district opts
111	113		to submit information to the commission or to make a recommendation
112	114		regarding the creation of the proposed district, the groundwater
113	115		conservation district shall submit to the commission, at least 10
114	116		days before the date set for action on the petition, a written
115	117		opinion stating:
116	118		(1) whether the groundwater conservation district
117	119		recommends the creation of the proposed district; and
118	120		(2) any findings, conclusions, and other information
119	121		that the groundwater conservation district thinks would assist the
120	122		commission in making a final determination on the petition.
121	123		(c) In passing on a petition subject to this section, the
122	124		commission shall consider the written opinion submitted by the
123	125		groundwater conservation district.
124	126		SECTION 7. Section 54.102, Water Code, is amended to read as
125	127		follows:
126	128		Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. (a) To be
127	129		qualified to serve as a director, a person shall be at least 18
128	130		years old, a resident citizen of the State of Texas, and either own
129	131		land subject to taxation in the district or be a qualified voter
130	132		within the district.
131	133		(a-1) a minimum of three directors must be qualified voters
132	134		within the district, and reside within the district.
133	135		(b) A person is disqualified from serving as a director if
134	136		that person is serving on the board of a property owners'
135	137		association under Chapter 209, Property Code.
136	138		SECTION 8. Chapter 54, Water Code, is amended by adding Sec.
137	139		54.103 to read as follows:
138	140		LENGTH OF TERMS FOR DIRECTORS. Notwithstanding any other
139	141		Chapter, the length of a term for a director shall not exceed four
140	142		years. This Section does not impose term limits.
141	143		SECTION 9. Subchapter C, Chapter 54, Water Code, is amended
142	144		by adding Section 54.104 to read as follows:
143	145		Sec. 54.103. POSTING OF NOTICE; POSTING OF BUDGET; TIME AND
144	146		PLACE OF MEETINGS; GENERAL RULE.
145	147		(a) Notwithstanding Section 49.062, Water Code or Section
146	148		551.043, Government Code, a notice of a meeting of the district's
147	149		board must be posted in a place readily accessible to the general
148	150		public at all times for at least three business days before the
149	151		scheduled date of the meeting, except as provided by Sections
150	152		551.044, 551.045, and 551.046, Government Code.
151	153		(b) If the board of a district conducts meetings at least
152	154		quarterly, the board shall conduct a meeting at a designated
153	155		meeting location inside the district or within 10 miles of the
154	156		boundary of the district at least once per quarter.
155	157		Notwithstanding Chapter 551, Government Code, a district to which
156	158		this section applies may satisfy the requirements of this
157	159		Subsection by conducting quarterly meetings by telephone
158	160		conference call or video conference call. A meeting to discuss the
159	161		tax rate of the district must be conducted in person.
160	162		(d) The notice of a meeting required to be posted under this
161	163		Section, Sec. 551.043(a), Government Code or Sec. 49.063, Water
162	164		Code, at which the district's board will discuss or adopt a budget
163	165		for the district or board must include a physical copy of the
164	166		budget.
165	167		SECTION 10. Subchapter G, Chapter 54, Water Code, is
166	168		amended by adding Section 54.605 to read as follows:
167	169		Sec. 54.605 APPLICABILITY OF TAX HEARINGS; AUTOMATIC
168	170		ELECTIONS FOR CERTAIN TAXES; LIMITATIONS ON TAX RATES; GENERAL
169	171		RULE. (a) For the purposes of providing notice of a tax hearing and
170	172		automatic elections to approve tax rates under Sections 49.236,
171	173		49.23601, 49.23602, and 49.23603, and notwithstanding those
172	174		sections, a district under this section shall be considered a
173	175		developed district under Section 49.23602, regardless of whether
174	176		the district has financed, completed, and issued all bonds to pay
175	177		for all lands, works, improvements, facilities, plants, equipment,
176	178		and appliances necessary to serve at least 95 percent of the
177	179		projected build-out of the district in accordance with the purposes
178	180		for its creation or the purposes authorized by the constitution,
179	181		this code, or any other law.
180	182		(b) For the purposes of providing notice of a tax hearing
181	183		under Section 49.236, notices shall also apply and include
182	184		reference to the district's interest and sinking fund rate.
183	185		(c) For the purposes of an automatic election to approve tax
184	186		rates under Section 49.23602, the district shall also account for
185	187		its interest and sinking fund rate under Sec. 49.23602(a)(4) and
186	188		Sec. 49.23602(c).
187	189		(d) Notwithstanding any other statutes, the district shall
188	190		not assess or impose an interest and sinking fund rate in any tax
189	191		year that exceeds a rate of 50 cents on the $100 of assessed value.
190	192		(e) Notwithstanding any other statutes, no district shall
191	193		levy an ad valorem tax rate in excess of One Dollar and Twenty Five
192	194		Cents ($1.25) on the $100 of assessed valuation in any one tax year
193	195		for combined district taxes.
194	196		SECTION 11. Sections 209.00591(a-4), Property Code, and
195	197		54.102(b), as added by this Act, apply only to a person elected or
196	198		appointed to serve as the presiding officer of the board of a
197	199		property owners ' association or president of the board of a
198	200		municipal utility district on or after the effective date of this
199	201		Act.
200	202		SECTION 12. Section 54.0135, Water Code, as added by this
201	203		Act, and Section 54.015, Water Code, as amended by this Act, apply
202	204		only to a petition requesting creation of a municipal utility
203	205		district that is filed with the Texas Commission on Environmental
204	206		Quality on or after the effective date of this Act. A petition
205	207		requesting creation of a municipal utility district that was filed
206	208		with the commission before the effective date of this Act is
207	209		governed by the law in effect on the date the petition was filed,
208	210		and the former law is continued in effect for that purpose.
209	211		SECTION 13. Section 54.102, Water Code, as amended by this
210	212		Act, does not affect the entitlement of a member serving
211	213		immediately before the effective date of this Act on the board of
212	214		directors of a municipal utility district described by that section
213	215		to continue to carry out the board's functions for the remainder of
214	216		the member's term. That section applies only to a member of the
215	217		board of directors of such a district elected or appointed on or
216	218		after the effective date of this Act. That section does not
217	219		prohibit a person who is a member of the board of directors of such a
218	220		district on the effective date of this Act from being reelected or
219	221		reappointed to the board if the person has the qualifications
220	222		required for a member under that section.
221	223		SECTION 14. This Act takes effect September 1, 2025.