Bill Text: TX HB4214 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the creation of the Legacy Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-05-13 - Recommendations filed with the Speaker [HB4214 Detail]

Download: Texas-2015-HB4214-Introduced.html

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84R22184 SLB-F
By: Isaac H.B. No. 4214

A BILL TO BE ENTITLED
relating to the creation of the Legacy Municipal Utility District
No. 1; granting a limited power of eminent domain; providing
authority to issue bonds; providing authority to impose
assessments, fees, and 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 7957 to read as follows:
CHAPTER 7957. LEGACY MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7957.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Director" means a board member.
(4) "District" means the Legacy Municipal Utility
District No. 1.
Sec. 7957.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7957.003. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The temporary directors shall hold an election to
confirm the creation of the district and to elect five permanent
directors as provided by Section 49.102, Water Code.
Sec. 7957.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 7957.003
until each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located has
consented by ordinance or resolution to the creation of the
district and to the inclusion of land in the district.
Sec. 7957.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
The district is created to serve a public purpose and benefit.
(b) The district is created to accomplish the purposes of:
(1) a municipal utility district as provided by
general law and Section 59, Article XVI, Texas Constitution; and
(2) 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. 7957.006. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake made in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose a tax; or
(4) legality or operation.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7957.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 7957.052, directors serve
staggered four-year terms.
Sec. 7957.052. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district may submit a petition to the commission requesting that
the commission appoint as temporary directors the five persons
named in the petition. The commission shall appoint as temporary
directors the five persons named in the petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7957.003; or
(2) the fourth anniversary of the effective date of
the Act enacting this chapter.
(c) If permanent directors have not been elected under
Section 7957.003 and the terms of the temporary directors have
expired, successor temporary directors shall be appointed or
reappointed as provided by Subsection (d) to serve terms that
expire on the earlier of:
(1) the date permanent directors are elected under
Section 7957.003; or
(2) the fourth anniversary of the date of the
appointment or reappointment.
(d) If Subsection (c) applies, the owner or owners of a
majority of the assessed value of the real property in the district
may submit a petition to the commission requesting that the
commission appoint as successor temporary directors the five
persons named in the petition. The commission shall appoint as
successor temporary directors the five persons named in the
petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7957.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7957.102. 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. 7957.103. AUTHORITY FOR ROAD PROJECTS. Under Section
52, Article III, Texas Constitution, the district may design,
acquire, construct, finance, issue bonds for, improve, operate,
maintain, and convey to this state, a county, or a municipality for
operation and maintenance macadamized, graveled, or paved roads, or
improvements, including storm drainage, in aid of those roads.
Sec. 7957.104. 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 or extraterritorial jurisdiction the road
project is located.
(b) If a road project is not located in the corporate limits
or extraterritorial jurisdiction of a municipality, the road
project must meet all applicable construction standards,
subdivision requirements, and regulations of each county in which
the road project is located.
(c) If the state will maintain and operate the road, the
Texas Transportation Commission must approve the plans and
specifications of the road project.
Sec. 7957.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
OR RESOLUTION. The district shall comply with all applicable
requirements of any ordinance or resolution that is adopted under
Section 54.016 or 54.0165, Water Code, and that consents to the
creation of the district or to the inclusion of land in the
district.
Sec. 7957.106. DIVISION OF DISTRICT. (a) The district may
be divided into two or more districts only if:
(1) the district has no outstanding bonded debt;
(2) the district is not imposing ad valorem taxes; and
(3) the requirements of Subsection (i), as applicable,
are satisfied.
(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) A new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act creating this
chapter.
(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) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
7957.003 to confirm the district's creation.
(f) An order dividing the district shall:
(1) name the new district;
(2) include the metes and bounds of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between the district and each new district.
(g) 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.
(h) A new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 7957.003.
(i) If the district is located wholly or partly in the
corporate limits or the extraterritorial jurisdiction of a
municipality, the district may not divide under this section unless
the municipality by resolution or ordinance consents to the
division of the district. If the district is not located wholly or
partly in the corporate limits or extraterritorial jurisdiction of
a municipality, the district may not divide under this section
unless the commissioners court of each county in which the district
is wholly or partly located first adopts a resolution or order in
support of the division of the district.
(j) 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7957.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 7957.153.
(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) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved by a
vote of a two-thirds majority of the district voters voting at an
election held for that purpose.
Sec. 7957.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7957.151, the district
may impose an operation and maintenance tax on taxable property in
the district in accordance with Section 49.107, Water Code.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Sec. 7957.153. 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.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7957.201. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations
payable wholly or partly from ad valorem taxes, impact fees,
revenue, contract payments, grants, or other district money, or any
combination of those sources, to pay for any authorized district
purpose.
Sec. 7957.202. 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 ad valorem tax, without limit as to rate or amount, while 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. 7957.203. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other obligations
issued or incurred to finance road projects and payable from ad
valorem taxes may not exceed one-fourth of the assessed value of the
real property in the district.
SECTION 2. The Legacy Municipal Utility District No. 1
initially includes all the territory contained in the following
area:
Being 781.23 acres out of the S.D. Gervais League, No. Eight
(8), Hays County, Texas, described as follows, to-wit:
BEGINNING at a nail in fence corner post in the North line of
FM Road 967 as described in deed from E.R.L. Wroe to The State of
Texas recorded in Volume 163, Page 536 of the Deed of Records of
Hays County, Texas, said point being the relocated Southwest corner
of that certain 1200 acre tract conveyed to E.R.L. Wroe be deed
recorded in Volume 139, Page 602 of the Deed of Records of Hays
County, Texas, for the southwest corner of the tract herein
described and being the Southeast corner of the P.R. Rutherford
Greenhaw tract, from which the original Southwest corner of the
said Wroe 1200 acre tract bears S 0 deg. 40'W. 114 ft., more or less;
THENCE with the fence along the West line of the said Wroe
tract and East line of the said Rutherford tract, being also the
West line of said S.D. Gervais League and the East line of the Thos.
F. Gray League, N 0 deg. 40'E a distance of 4869.91 ft. to a fence
corner post at the occupied Northwest corner of the Wroe tract, for
the Northwest corner of this tract;
THENCE with the fence along occupied North line of the said
Wroe 1200 acre tract with the courses and distances as follows: S 89
deg. 30'E. 267.84 ft., N 87 deg. 56'E. 128.56 ft., S 89 deg. 45'E
442.77 ft., N 89 deg. 17'E. 135.15 ft., S 89 deg. 51'E 954.73 ft., S
89 deg. 36'E 1299.82 ft., N 89 deg. 35'E 1099.83 ft., S 89 deg. 55'E
2482.80 ft., for the Northeast corner of the tract;
THENCE with the East line of this tract, over and across said
Wroe tract, DUE South 4981.60 feet to an iron stake set for the
Southeast corner of this tract;
THENCE with the fence along the North right-of-way line of FM
967 and the relocated South line of the said Wroe tract, S 89 deg,
56'W. 1003.37 ft., N 89 deg. 47'W. 5321.17 ft. to a concrete
right-of-way monument at point of curve to the right, the radius of
which is 1585.35 ft., for an angle point in this tract;
THENCE with the fence along the curving North line of the said
road to the right, an arc distance of 555.46 ft., the cord of which
bears N 79 deg. 45'W 552.61 ft. to the Place of Beginning,
containing 781.23 acres of land, more or less.
SECTION 3. (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 4. (a) If this Act does not receive a two-thirds
vote of all the members elected to each house, Subchapter C, Chapter
7957, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7957.107 to read as follows:
Sec. 7957.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. 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.