Bill Text: TX HB4180 | 2015-2016 | 84th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the conversion of the Harris-Fort Bend Counties Municipal Utility District No. 4 to the Katy Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Enrolled - Dead) 2015-06-18 - Effective immediately [HB4180 Detail]

Download: Texas-2015-HB4180-Introduced.html

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84R18796 JXC-F
By: Zerwas H.B. No. 4180

A BILL TO BE ENTITLED
AN ACT
relating to the conversion of the Harris-Fort Bend Counties
Municipal Utility District No. 4 to the Katy Management District
No. 1; providing authority to issue bonds; providing authority to
impose assessments, fees, or taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Harris-Fort Bend Counties Municipal Utility
District No. 4 is converted to the Katy Management District No. 1
and is governed by Chapter 3935, Special District Local Laws Code,
as added by this Act.
SECTION 2. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3935 to read as follows:
CHAPTER 3935. KATY MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3935.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Katy.
(3) "County" means Harris County or Fort Bend County.
(4) "Director" means a board member.
(5) "District" means the Katy Management District No.
1.
Sec. 3935.002. NATURE OF DISTRICT; CONVERSION. The Katy
Management District No. 1 is a special district created under
Section 59, Article XVI, Texas Constitution, as the Harris-Fort
Bend Counties Municipal Utility District No. 4. The district is
converted to a municipal management district known as the Katy
Management District No. 1 under the same constitutional authority.
Sec. 3935.003. PURPOSE; DECLARATION OF INTENT. (a) The
conversion and operation of the district are essential to
accomplish the purposes of Sections 52 and 52-a, Article III, and
Section 59, Article XVI, Texas Constitution, and other public
purposes stated in this chapter. By converting the district to a
municipal management district and in authorizing the city, the
county, and other political subdivisions to contract with the
district, the legislature has established a program to accomplish
the public purposes set out in Section 52-a, Article III, Texas
Constitution.
(b) The conversion and operation of the district are
necessary to promote, develop, encourage, and maintain employment,
commerce, transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the conversion or operation of the
district may not be interpreted to relieve the city or the county
from providing the level of services provided as of the effective
date of the Act enacting this chapter to the area in the district.
The district is created to supplement and not to supplant city or
county services provided in the district.
Sec. 3935.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is converted to a municipal management district to
serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The operation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation and
commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center;
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty;
and
(4) provide for water, wastewater, drainage, road, and
recreational facilities for the district.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3935.005. INITIAL DISTRICT TERRITORY. The district is
initially composed of the territory of the former Harris-Fort Bend
Counties Municipal Utility District No. 4 as that territory existed
on March 1, 2015.
Sec. 3935.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3935.007. CONSTRUCTION OF CHAPTER. This chapter shall
be liberally construed in conformity with the findings and purposes
stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3935.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five voting directors who serve staggered
terms of four years, with two or three directors' terms expiring May
1 of each even-numbered year.
(b) The board by resolution may change the number of voting
directors on the board if the board determines that the change is in
the best interest of the district. The board may not consist of
fewer than 5 or more than 11 voting directors.
Sec. 3935.052. APPOINTMENT OF VOTING DIRECTORS. (a) The
mayor and members of the governing body of the city shall appoint
voting directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
(b) Section 375.063, Local Government Code, does not apply
to the district.
Sec. 3935.053. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Sec. 3935.054. QUORUM. For purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including
death, resignation, or disqualification;
(2) a director who is abstaining from participation in
a vote because of a conflict of interest; or
(3) a nonvoting director.
Sec. 3935.055. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code. Sections 375.069 and
375.070, Local Government Code, do not apply to the board.
Sec. 3935.056. INITIAL VOTING DIRECTORS ON CONVERSION TO
MANAGEMENT DISTRICT. (a) On the conversion of the district to a
management district, the initial board consists of the following
directors:
Pos. No. Name of Director
1. Kenneth Berger
2. Orville Wient
3. Robert C. Hargarther
4. Donald P. Cox
5. Nick Alexander Jr.
(b) Of the initial directors, the terms of directors
appointed for positions one through three expire May 14, 2016, and
the terms of directors appointed for positions four and five expire
May 12, 2018.
(c) Sections 3935.051 and 3935.052 do not apply to the
appointment or terms of directors appointed under Subsection (a).
A director appointed to succeed a director appointed under
Subsection (a) serves until May 1 of the appropriate year.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3935.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes
described by this chapter.
Sec. 3935.102. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using any money available to the district, or contract with
a governmental or private entity to provide, design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project or service authorized under this chapter or
Chapter 375, Local Government Code.
Sec. 3935.103. 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. 3935.104. DEVELOPMENT CORPORATION POWERS. The
district, using money available to the district, may exercise the
powers given to a development corporation under Chapter 505, Local
Government Code, including the power to own, operate, acquire,
construct, lease, improve, or maintain a project under that
chapter.
Sec. 3935.105. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3935.106. AGREEMENTS; GRANTS. (a) As provided by
Chapter 375, Local Government Code, the district may make an
agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3935.107. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or the city, to provide law enforcement
services in the district for a fee.
Sec. 3935.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3935.109. ECONOMIC DEVELOPMENT. (a) The district may
engage in activities that accomplish the economic development
purposes of the district.
(b) The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(c) The district may create economic development programs
and exercise the economic development powers provided to
municipalities by:
(1) Chapter 380, Local Government Code; and
(2) Subchapter A, Chapter 1509, Government Code.
Sec. 3935.110. PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b) The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d) The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 3935.111. ANNEXATION OF LAND. The district may annex
land as provided by Subchapter J, Chapter 49, Water Code.
Sec. 3935.112. APPROVAL BY CITY. (a) Except as provided by
Subsection (c), the district must obtain the approval of the city
for:
(1) the issuance of bonds;
(2) the plans and specifications of an improvement
project financed by bonds; and
(3) the plans and specifications of an improvement
project related to the use of land owned by the city, an easement
granted by the city, or a right-of-way of a street, road, or
highway.
(b) The district may not issue bonds until the governing
body of the city adopts a resolution or ordinance authorizing the
issuance of the bonds.
(c) If the district obtains the approval of the city's
governing body of a capital improvements budget for a period not to
exceed 10 years, the district may finance the capital improvements
and issue bonds specified in the budget without further approval
from the city.
(d) The governing body of the city:
(1) is not required to adopt a resolution or ordinance
to approve plans and specifications described by Subsection (a);
and
(2) may establish an administrative process to approve
plans and specifications described by Subsection (a) without the
involvement of the governing body.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3935.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3935.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or Chapter
375, Local Government Code, using any money available to the
district.
Sec. 3935.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by
the owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for the county.
Sec. 3935.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
Sec. 3935.155. TAX AND ASSESSMENT ABATEMENT. The district
may designate reinvestment zones and may grant abatements of
district taxes or assessments on property in the zones.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3935.201. ELECTIONS REGARDING TAXES AND BONDS. (a)
The district may issue, without an election, bonds, notes, and
other obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 3935.203.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose an ad valorem tax or issue bonds
payable from ad valorem taxes.
(c) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3935.202. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held in accordance with Section 49.107, Water Code, the
district may impose an operation and maintenance tax on taxable
property in the district in accordance with that section for any
district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3935.203. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
Sec. 3935.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
determined by the board. Section 375.205, Local Government Code,
does not apply to a loan, line of credit, or other borrowing from a
bank or financial institution secured by revenue other than ad
valorem taxes.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
(c) The limitation on the outstanding principal amount of
bonds, notes, and other obligations provided by Section 49.4645,
Water Code, does not apply to the district.
Sec. 3935.205. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct annual ad valorem tax, without limit as to rate or amount,
for each year that all or part of the bonds are outstanding as
required and in the manner provided by Sections 54.601 and 54.602,
Water Code.
Sec. 3935.206. CITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the city is not required to pay a bond, note, or
other obligation of the district.
SECTION 3. The Katy Management District No. 1 retains all
rights, powers, privileges, authority, duties, and functions that
the Harris-Fort Bend Counties Municipal Utility District No. 4 had
before the effective date of this Act, except as otherwise
expressly provided by Chapter 3935, Special District Local Laws
Code, as added by this Act.
SECTION 4. (a) The legislature validates and confirms all
governmental acts and proceedings of the Harris-Fort Bend Counties
Municipal Utility District No. 4 that were taken before the
effective date of this Act.
(b) This section does not apply to any matter that on the
effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final court
judgment; or
(2) has been held invalid by a final court judgment.
SECTION 5. (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,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
(e) 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 have been
fulfilled and accomplished.
SECTION 6. 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, 2015.