83R21977 SLB-F
	By: Pitts	H.B. No. 3877
	Substitute the following for H.B. No. 3877:
	By:  Thompson of Brazoria	C.S.H.B. No. 3877

	A BILL TO BE ENTITLED
	AN ACT
	relating to the powers and duties of the Ellis County Municipal
	Utility District No. 1; granting a limited power of eminent domain;
	providing authority to issue bonds; providing authority to impose
	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 8467 to read as follows:
	CHAPTER 8467. ELLIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 8467.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "Director" means a board member.
	(3)  "District" means the Ellis County Municipal
	Utility District No. 1.
	Sec. 8467.002.  NATURE OF DISTRICT. The district is a
	municipal utility district created under and essential to
	accomplish the purposes of Section 52, Article III, and Section 59,
	Article XVI, Texas Constitution.
	Sec. 8467.003.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.  (a)
	All land and other property in the district will benefit from the
	improvements and services to be provided by the district.
	(b)  The district is created to accomplish the purposes of
	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. 8467.004.  ANNEXATION BY MUNICIPALITY. Notwithstanding
	any other law, on the written consent of the landowners and the
	district, a municipality in whose extraterritorial jurisdiction
	the district is located may annex a portion of the district. The
	district is not dissolved as a result of an annexation under this
	section.
	Sec. 8467.005.  LIMITED-PURPOSE ANNEXATION BY A
	MUNICIPALITY.  (a)  Notwithstanding any other law, the governing
	body of a municipality in whose extraterritorial jurisdiction the
	district is located may:
	(1)  enter into a strategic partnership agreement with
	the district; and
	(2)  annex all or a portion of the district for limited
	purposes under Section 43.0751, Local Government Code.
	(b)  An individual residing in the district is considered an
	inhabitant of a municipality for the purposes of determining the
	population of the municipality under Section 5, Article XI, Texas
	Constitution.
	SUBCHAPTER B. POWERS AND DUTIES
	Sec. 8467.051.  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. 8467.052.  DIVISION OF DISTRICT. (a) The district may
	be divided into two or more new districts only if the district:
	(1)  has no outstanding bonded debt; and
	(2)  is not imposing ad valorem taxes.
	(b)  This chapter applies to any new district created by the
	division of the district, and a new district has all the powers and
	duties of the district.
	(c)  Any new district created by the division of the district
	may not, at the time the new district is created, contain any land
	outside the territory of the district as it existed on the date the
	district was created.
	(d)  The board, on its own motion or on receipt of a petition
	signed by the owner or owners of a majority of the assessed value of
	the real property in the district, may adopt an order dividing the
	district.
	(e)  An order dividing the district must:
	(1)  name each new district;
	(2)  include the metes and bounds description of the
	territory of each new district;
	(3)  appoint temporary directors for each new district;
	and
	(4)  provide for the division of assets and liabilities
	between or among the new districts.
	(f)  On or before the 30th day after the date of adoption of
	an order dividing the district, the district shall file the order
	with the Texas Commission on Environmental Quality and record the
	order in the real property records of each county in which the
	district is located.
	(g)  Any new district created by the division of the district
	shall hold a confirmation and directors' election as provided by
	Section 49.102, Water Code.
	(h)  Municipal consent to the creation of the district and to
	the inclusion of land in the district acts as municipal consent to
	the creation of any new district created by the division of the
	district and to the inclusion of land in the new district.
	(i)  Any new district created by the division of the district
	must hold an election as required by this chapter to obtain voter
	approval before the district may impose a maintenance tax or issue
	bonds payable wholly or partly from ad valorem taxes.
	Sec. 8467.053.  AUTHORITY FOR ROAD PROJECTS. Under Section
	52, Article III, Texas Constitution, the district may acquire,
	construct, improve, operate, or maintain macadamized, graveled, or
	paved roads or turnpikes, or improvements in aid of those roads or
	turnpikes inside the district.
	Sec. 8467.054.  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 the district is located.
	(b)  If a district is not located in the corporate limits of a
	municipality and is not subject to a development agreement with a
	municipality, a road project must meet all applicable construction
	standards, zoning and subdivision requirements, and regulations of
	each county in which the district is located.
	(c)  The district may not undertake a road project unless
	each municipality in whose corporate limits or extraterritorial
	jurisdiction the district is located consents by resolution.
	Sec. 8467.055.  COMPLIANCE WITH MUNICIPAL CONSENT
	RESOLUTIONS. The district shall comply with all applicable
	requirements of any resolution, adopted by the governing body of a
	municipality, that consented to the creation of the district or to
	the inclusion of land in the district.
	SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
	Sec. 8467.101.  TAX TO REPAY BONDS FOR ROAD PROJECTS. The
	district may impose a tax to pay the principal of or interest on
	bonds issued under Section 8467.151.
	SUBCHAPTER D.  BONDS
	Sec. 8467.151.  AUTHORITY TO ISSUE BONDS AND OTHER
	OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or
	other obligations as provided by Chapters 49 and 54, Water Code, to
	finance the construction, maintenance, or operation of projects
	under Section 8467.053.
	(b)  The district may not issue bonds or other obligations
	secured wholly or partly by ad valorem taxation to finance projects
	authorized by Section 8467.053 unless the issuance is approved by a
	vote of a two-thirds majority of the voters in the district or of
	the defined areas to be benefited by the project as provided by
	Subchapter J, Chapter 54, Water Code, voting at an election called
	for that purpose. The simple majority vote approval required by
	Section 54.808(a), Water Code, does not apply to an election under
	this subsection.
	(c)  Bonds or other obligations issued or incurred to finance
	projects authorized by Section 8467.053 may not exceed one-fourth
	of the assessed value of the real property in the district or the
	defined area as provided by Subchapter J, Chapter 54, Water Code.
	SECTION 2.  (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 3.  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, 2013.