Bill Text: TX HB4320 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of the Fort Bend County Municipal Management District No. 2; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4320 Detail]
Download: Texas-2017-HB4320-Comm_Sub.html
Bill Title: Relating to the creation of the Fort Bend County Municipal Management District No. 2; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [HB4320 Detail]
Download: Texas-2017-HB4320-Comm_Sub.html
85R26136 SMT-F | |||
By: Zerwas | H.B. No. 4320 | ||
Substitute the following for H.B. No. 4320: | |||
By: Schubert | C.S.H.B. No. 4320 |
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relating to the creation of the Fort Bend County Municipal | ||
Management District No. 2; 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. Subtitle C, Title 4, Special District Local Laws | ||
Code, is amended by adding Chapter 3957 to read as follows: | ||
CHAPTER 3957. FORT BEND COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 2 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 3957.001. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "County" means Fort Bend County. | ||
(3) "Director" means a board member. | ||
(4) "District" means the Fort Bend County Municipal | ||
Management District No. 2. | ||
Sec. 3957.002. NATURE OF DISTRICT. The district is a | ||
special district created under Section 59, Article XVI, Texas | ||
Constitution. | ||
Sec. 3957.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The | ||
creation of the district is 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 creating the district and in authorizing 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 creation of the district is 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 creation of the district may not be | ||
interpreted to relieve 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 county services provided in the | ||
district. | ||
Sec. 3957.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) | ||
The district is created 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 creation 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. 3957.005. 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 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 bonds for the purposes | ||
for which the district is created or to pay the principal of and | ||
interest on bonds; | ||
(3) right to impose or collect an assessment or tax; or | ||
(4) legality or operation. | ||
Sec. 3957.006. APPLICABILITY OF MUNICIPAL MANAGEMENT | ||
DISTRICTS LAW. Except as otherwise provided by this chapter, | ||
Chapter 375, Local Government Code, applies to the district. | ||
Sec. 3957.007. 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. 3957.051. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of five directors elected in the manner provided | ||
by Sections 49.102 and 49.103, Water Code. | ||
(b) Except as provided by Section 3957.054, directors serve | ||
staggered four-year terms. | ||
Sec. 3957.052. 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; or | ||
(2) a director who is abstaining from participation in | ||
a vote because of a conflict of interest. | ||
Sec. 3957.053. 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. 3957.054. TEMPORARY VOTING 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 according to the most recent certified tax appraisal | ||
roll for the county may submit a petition to the Texas Commission on | ||
Environmental Quality requesting that the commission appoint as | ||
temporary voting directors the five persons named in the petition. | ||
The commission shall appoint the five persons named in the petition | ||
as temporary directors by position. | ||
(b) The temporary directors shall hold an election to elect | ||
five permanent directors as provided by Section 49.102, Water Code. | ||
(c) Temporary directors serve until the earlier of: | ||
(1) the date permanent directors are elected under | ||
Subsection (b); or | ||
(2) the fourth anniversary of the effective date of | ||
the Act enacting this chapter. | ||
(d) If permanent directors have not been elected under | ||
Subsection (b) and the terms of the temporary directors have | ||
expired, successor temporary directors shall be appointed or | ||
reappointed as provided by Subsection (e) to serve terms that | ||
expire on the earlier of: | ||
(1) the date permanent directors are elected under | ||
Subsection (b); or | ||
(2) the fourth anniversary of the date of the | ||
appointment or reappointment. | ||
(e) If Subsection (d) 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 Texas Commission on Environmental | ||
Quality 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. | ||
(f) Section 3957.051 does not apply to this section. | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 3957.101. GENERAL POWERS AND DUTIES. The district has | ||
the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 3957.102. 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. 3957.103. 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. 3957.104. LAW ENFORCEMENT SERVICES. To protect the | ||
public interest, the district may contract with a qualified party, | ||
including the county, to provide law enforcement services in the | ||
district for a fee. | ||
Sec. 3957.105. 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. 3957.106. ECONOMIC DEVELOPMENT PROGRAMS. (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. 3957.107. 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. 3957.108. ANNEXATION OF LAND. The district may annex | ||
land as provided by Subchapter J, Chapter 49, Water Code. | ||
Sec. 3957.109. NO EMINENT DOMAIN POWER. The district may | ||
not exercise the power of eminent domain. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS | ||
Sec. 3957.151. 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. 3957.152. 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. 3957.153. 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. 3957.154. 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. 3957.155. TAX AND ASSESSMENT ABATEMENTS. The district | ||
may designate reinvestment zones and may grant abatements of a tax | ||
or assessment on property in the zones. | ||
SUBCHAPTER E. TAXES AND BONDS | ||
Sec. 3957.201. 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 3957.203. | ||
(b) The district must hold an election in the manner | ||
provided by Subchapter L, Chapter 375, Local Government Code, to | ||
obtain voter approval before the district may impose an ad valorem | ||
tax or issue bonds payable from ad valorem taxes. | ||
(c) Section 375.243, Local Government Code, does not apply | ||
to the district. | ||
(d) 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. 3957.202. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized by a majority of the district voters voting at an | ||
election held in accordance with Section 3957.201, the district may | ||
impose an operation and maintenance tax on taxable property in the | ||
district in accordance with Section 49.107, Water Code, 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. 3957.203. 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. 3957.204. 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. 3957.205. 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. | ||
SUBCHAPTER F. DEFINED AREAS | ||
Sec. 3957.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR | ||
DESIGNATED PROPERTY. The district may define areas or designate | ||
certain property of the district to pay for improvements, | ||
facilities, or services that primarily benefit that area or | ||
property and do not generally and directly benefit the district as a | ||
whole. | ||
Sec. 3957.252. PROCEDURE FOR ELECTION. (a) Before the | ||
district may impose an ad valorem tax or issue bonds payable from ad | ||
valorem taxes of the defined area or designated property, the board | ||
shall hold an election in the defined area or in the designated | ||
property only. | ||
(b) The board may submit the proposition to the voters on | ||
the same ballot to be used in another election. | ||
Sec. 3957.253. DECLARING RESULT AND ISSUING ORDER. (a) If | ||
a majority of the voters voting at the election approve the | ||
proposition or propositions, the board shall declare the results | ||
and, by order, shall establish the defined area and describe it by | ||
metes and bounds or designate the specific property. | ||
(b) A court may not review the board's order except on the | ||
ground of fraud, palpable error, or arbitrary and confiscatory | ||
abuse of discretion. | ||
Sec. 3957.254. TAXES FOR SERVICES, IMPROVEMENTS, AND | ||
FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter | ||
approval and adoption of the order described by Section 3957.253, | ||
the district may apply separately, differently, equitably, and | ||
specifically its taxing power and lien authority to the defined | ||
area or designated property to provide money to construct, | ||
administer, maintain, and operate services, improvements, and | ||
facilities that primarily benefit the defined area or designated | ||
property. | ||
Sec. 3957.255. ISSUANCE OF BONDS FOR DEFINED AREA OR | ||
DESIGNATED PROPERTY. After the order under Section 3957.253 is | ||
adopted, the district may issue bonds to provide for any land, | ||
improvements, facilities, plants, equipment, and appliances for | ||
the defined area or designated property. | ||
Sec. 3957.256. ADDITION OR EXCLUSION OF LAND IN DEFINED | ||
AREA. The district may add or exclude land from the defined areas | ||
in the same manner the district may add or exclude land from the | ||
district. | ||
SUBCHAPTER G. DISSOLUTION AND MUNICIPAL ANNEXATION | ||
Sec. 3957.301. DISSOLUTION; MUNICIPAL ANNEXATION. (a) The | ||
district is a water or sewer district for the purposes of Section | ||
43.071, Local Government Code. | ||
(b) Section 43.075, Local Government Code, applies to the | ||
district. | ||
(c) Section 375.264, Local Government Code, does not apply | ||
to the dissolution of the district by a municipality. | ||
SECTION 2. The Fort Bend County Municipal Management | ||
District No. 2 initially includes all the territory contained in | ||
the following area: | ||
BEING a 100.0 acre tract of land situated in the Knight and | ||
White Survey, Abstract No. 46 of Fort Bend County, Texas and being a | ||
portion of a called 901.854 acre tract (Tract I) of land as | ||
described in an instrument to WBH Ranches, LP recorded under Fort | ||
Bend County Clerk's File Number (F.B.C.C.F. No.) 2015004534, said | ||
100.0 acre tract of land described by metes and bounds as follows: | ||
COMMENCING at an interior corner of said 901.854 acre tract, | ||
same being the northwest corner of a called 294.296 acre tract as | ||
described in an instrument to Old South Plantation, Inc. recorded | ||
under F.B.C.C.F. No. 9722234, and the northwest corner of a called | ||
19.991 acre Drainage Easement tract as described in an instrument | ||
to the State of Texas for highway drainage purposes recorded under | ||
Volume 2247, Page 916 of the Fort Bend County Deed Records; | ||
THENCE, S 02°29'39" E, along and with the east line of said | ||
901.854 acre tract, same being the west line of said 294.296 acre | ||
tract and said 19.991 acre drainage easement tract, a distance of | ||
1,127.28 feet to the northeast corner and POINT OF BEGINNING of the | ||
herein described tract; | ||
THENCE, S 02°29'39" E, continuing along and with said east | ||
line, a distance of 2,087.00 feet to the southeast corner of the | ||
herein described tract; | ||
THENCE, over and across said 901.854 acre tract, the | ||
following courses and distances: | ||
S 87°30'21" W, a distance of 2,087.21 feet to the | ||
southwest corner of the herein described tract; | ||
N 02°29'39" W, a distance of 2,087.00 feet to the | ||
northwest corner of the herein described tract; | ||
N 87°30'21" E, a distance of 2,087.21 feet to the POINT | ||
OF BEGINNING and containing 100.0 acres of land. | ||
Bearing orientation is based on the Texas Coordinate System, | ||
South Central Zone 4204, NAD-83 and is referenced to a called | ||
901.854 acre tract as cited herein. | ||
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, | ||
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 4. 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, 2017. |