Bill Text: TX HB5326 | 2023-2024 | 88th Legislature | Comm Sub

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

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Bill Title: Relating to the creation of the Orchard Municipal Utility District No. 2; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-17 - Effective immediately [HB5326 Detail]

Download: Texas-2023-HB5326-Comm_Sub.html

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By: Gates (Senate Sponsor - Kolkhorst) H.B. No. 5326
(In the Senate - Received from the House May 3, 2023;
May 5, 2023, read first time and referred to Committee on Local
Government; May 10, 2023, reported favorably by the following
vote: Yeas 9, Nays 0; May 10, 2023, sent to printer.)
Click here to see the committee vote

COMMITTEE VOTE
YeaNayAbsentPNV
BettencourtX
SpringerX
EckhardtX
GutierrezX
HallX
NicholsX
ParkerX
PaxtonX
WestX
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Orchard Municipal Utility District
No. 2; 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 8079A to read as follows:
CHAPTER 8079A. ORCHARD MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8079A.0101. 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 Orchard Municipal Utility
District No. 2.
Sec. 8079A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8079A.0103. CONFIRMATION AND DIRECTOR 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. 8079A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8079A.0103 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 as required by
applicable law.
Sec. 8079A.0105. 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. 8079A.0106. 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. 8079A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 8079A.0202, directors
serve staggered four-year terms.
Sec. 8079A.0202. 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 8079A.0103; 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 8079A.0103 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 8079A.0103; 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. 8079A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8079A.0302. 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. 8079A.0303. 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. 8079A.0304. 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. 8079A.0305. 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. 8079A.0306. DIVISION OF DISTRICT. (a) 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.
(b) An order dividing a district may create one or more new
districts and may provide for the continuation of the district.
(c) An order dividing the district shall:
(1) name any new district;
(2) include the metes and bounds description of the
territory of each of the districts;
(3) appoint temporary directors for any new district;
and
(4) provide for the division of assets and liabilities
between the districts.
(d) The board may adopt an order dividing the district
before or after the date the board holds an election to confirm the
district's creation.
(e) The district may be divided only if the district:
(1) has never issued any bonds; and
(2) is not imposing ad valorem taxes.
(f) 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 enacting this
chapter.
(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 commission and record the order in the real property
records of each county in which the district is located.
(h) 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.
(i) A new district created by the division of the district
shall hold a confirmation and directors' election.
(j) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(k) A 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.
(l) The district may continue to rely on confirmation,
directors', bond, or tax elections held prior to the division.
(m) 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8079A.0401. 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
8079A.0403.
(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. 8079A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8079A.0401, 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. 8079A.0403. 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. 8079A.0501. 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. 8079A.0502. 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. 8079A.0503. 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. Orchard Municipal Utility District No. 2
initially includes all the territory contained in the following
area:
Being a 2,717.3 acre tract of land located in the Nancy
Spencer Survey, Abstract No. 88, Fort Bend County, Texas; said
2,717.3 acre tract being a portion of a called 3,719.849 acre tract
of land (Tract 11) recorded in Clerk's File (C.F.) No. 9632563 of
the Official Public Records of Fort Bend County (O.P.R.F.B.C.) said
2,717.3 acre tract being more particularly described as follows
(all bearings are referenced to the Texas Coordinate System, North
American Datum 1983 (NAD 83), South Central Zone):
Commencing at the southwest corner of said 3,719.849 acre
tract, the southeast corner of a called 191.415 acre tract of land
recorded in the name of J.F.D. Moore Estate Heirs Partnership, LTD.
in Volume 2729, Page 2237 of the Deed Records of Fort Bend County
(D.R.F.B.C.) and being on the northeasterly right-of-way line of
the G. C. & S.F. Railroad (formerly B.B.B. & C. Railroad) (100 feet
wide);
Thence, with the westerly line of said 3,719.849 acre tract,
the easterly line of said 191.415 acre tract, and the easterly line
of a called 640 acre tract of land recorded in the name of J.F.D.
Moore Estate Heirs Partnership, Ltd. in said Volume 2729, Page 2237
of the O.P.R.F.B.C., North 02 degrees 49 minutes 03 seconds West, a
distance of 2,329.33 feet to the Point of Beginning of the herein
described tract;
1. Thence, with the westerly line of said 3,719.849 acre
tract, the easterly line of said 640 acre tract, and the easterly
line of a called 2,155 acre tract of land recorded in the name of
J.F.D. Moore Estate Heirs Partnership, Ltd. in said Volume 2729,
Page 2237 of the O.P.R.F.B.C., North 02 degrees 49 minutes 03
seconds West, at a distance of 4,247.95 feet pass a concrete
monument found at the northeast corner of said 640 acre tract and
the southeast corner of said 2,155 acre tract, continuing a total a
distance of 18,850.37 feet;
Thence, continuing with the westerly line of said 3,719.849
acre tract and the easterly line of said 2,155 acre tract, the
following three (3) courses:
1. North 03 degrees 02 minutes 24 seconds West, a distance
of 2,781.00 feet;
2. North 03 degrees 06 minutes 21 seconds West, a distance
of 932.80 feet;
3. North 02 degrees 49 minutes 21 seconds West, a distance
of 1,502.80 feet to the westerly high bank of the Brazos River;
Thence, generally with said westerly high bank of the Brazos
River, the following eleven (11) courses:
4. South 72 degrees 44 minutes 02 seconds East, a distance
of 14.76 feet;
5. South 78 degrees 41 minutes 04 seconds East, a distance
of 417.66 feet;
6. South 75 degrees 00 minutes 02 seconds East, a distance
of 229.22 feet;
7. South 70 degrees 02 minutes 45 seconds East, a distance
of 180.03 feet;
8. South 67 degrees 00 minutes 16 seconds East, a distance
of 165.02 feet;
9. South 61 degrees 35 minutes 51 seconds East, a distance
of 207.59 feet;
10. South 63 degrees 19 minutes 42 seconds East, a distance
of 248.21 feet;
11. South 56 degrees 54 minutes 06 seconds East, a distance
of 204.89 feet;
12. South 44 degrees 17 minutes 52 seconds East, a distance
of 257.06 feet;
13. South 26 degrees 27 minutes 30 seconds East, a distance
of 215.03 feet;
14. South 32 degrees 02 minutes 31 seconds East, a distance
of 22.36 feet;
15. Thence, across aforesaid 3,719.849 acre tract, 4,373.78
feet along the arc of a curve to the left, said curve having a
central angle of 94 degrees 55 minutes 26 seconds, a radius of
2,640.00 feet and a chord that bears South 00 degrees 36 minutes 58
seconds East, a distance of 3,890.45 feet;
16. Thence, continuing across said 3,719.849 acre tract,
4,150.57 feet along the arc of a curve to the left, said curve
having a central angle of 90 degrees 04 minutes 47 seconds, a radius
of 2,640.00 feet and a chord that bears South 44 degrees 24 minutes
01 seconds East, a distance of 3,736.12 feet to aforesaid westerly
high bank of the Brazos River;
Thence, generally with said westerly high bank of the Brazos
River, the following eighty (80) courses:
17. South 34 degrees 28 minutes 13 seconds East, a distance
of 433.92 feet;
18. South 41 degrees 29 minutes 22 seconds East, a distance
of 354.45 feet;
19. South 59 degrees 43 minutes 40 seconds East, a distance
of 178.25 feet;
20. South 64 degrees 55 minutes 25 seconds East, a distance
of 217.46 feet;
21. South 45 degrees 36 minutes 07 seconds East, a distance
of 156.54 feet;
22. South 61 degrees 02 minutes 24 seconds East, a distance
of 290.45 feet;
23. South 62 degrees 55 minutes 23 seconds East, a distance
of 220.95 feet;
24. South 51 degrees 38 minutes 39 seconds East, a distance
of 205.63 feet;
25. South 50 degrees 33 minutes 15 seconds East, a distance
of 241.04 feet;
26. South 64 degrees 47 minutes 04 seconds East, a distance
of 180.54 feet;
27. South 47 degrees 48 minutes 24 seconds East, a distance
of 192.00 feet;
28. South 37 degrees 06 minutes 08 seconds East, a distance
of 227.18 feet;
29. South 36 degrees 59 minutes 46 seconds East, a distance
of 159.52 feet;
30. South 43 degrees 31 minutes 03 seconds East, a distance
of 503.94 feet;
31. South 40 degrees 03 minutes 12 seconds East, a distance
of 672.25 feet;
32. South 33 degrees 07 minutes 00 seconds East, a distance
of 172.05 feet;
33. South 35 degrees 00 minutes 51 seconds East, a distance
of 236.49 feet;
34. South 40 degrees 01 minutes 43 seconds East, a distance
of 214.33 feet;
35. South 32 degrees 15 minutes 15 seconds East, a distance
of 219.68 feet;
36. South 26 degrees 38 minutes 11 seconds East, a distance
of 222.66 feet;
37. South 31 degrees 11 minutes 43 seconds East, a distance
of 242.07 feet;
38. South 29 degrees 50 minutes 26 seconds East, a distance
of 263.79 feet;
39. South 12 degrees 47 minutes 53 seconds East, a distance
of 200.25 feet;
40. South 20 degrees 55 minutes 56 seconds East, a distance
of 300.61 feet;
41. South 20 degrees 01 minutes 43 seconds East, a distance
of 209.00 feet;
42. South 12 degrees 26 minutes 57 seconds East, a distance
of 254.24 feet;
43. South 08 degrees 08 minutes 54 seconds East, a distance
of 202.50 feet;
44. South 03 degrees 28 minutes 48 seconds East, a distance
of 146.68 feet;
45. South 00 degrees 08 minutes 48 seconds East, a distance
of 268.65 feet;
46. South 08 degrees 27 minutes 15 seconds West, a distance
of 223.96 feet;
47. South 13 degrees 58 minutes 09 seconds West, a distance
of 181.17 feet;
48. South 25 degrees 23 minutes 14 seconds West, a distance
of 155.08 feet;
49. South 35 degrees 06 minutes 01 seconds West, a distance
of 590.15 feet;
50. South 31 degrees 39 minutes 21 seconds West, a distance
of 175.38 feet;
51. South 28 degrees 17 minutes 22 seconds West, a distance
of 237.30 feet;
52. South 37 degrees 20 minutes 10 seconds West, a distance
of 237.30 feet;
53. South 38 degrees 08 minutes 03 seconds West, a distance
of 225.32 feet;
54. South 35 degrees 15 minutes 38 seconds West, a distance
of 248.60 feet;
55. South 35 degrees 51 minutes 07 seconds West, a distance
of 309.84 feet;
56. South 23 degrees 27 minutes 15 seconds West, a distance
of 320.51 feet;
57. South 13 degrees 04 minutes 47 seconds East, a distance
of 261.27 feet;
58. South 25 degrees 58 minutes 32 seconds West, a distance
of 91.14 feet;
59. South 04 degrees 23 minutes 14 seconds West, a distance
of 138.87 feet;
60. South 04 degrees 29 minutes 37 seconds West, a distance
of 127.72 feet;
61. South 17 degrees 35 minutes 25 seconds East, a distance
of 89.22 feet;
62. South 21 degrees 29 minutes 39 seconds East, a distance
of 246.80 feet;
63. South 29 degrees 42 minutes 34 seconds East, a distance
of 301.29 feet;
64. South 08 degrees 28 minutes 17 seconds East, a distance
of 128.18 feet;
65. South 20 degrees 05 minutes 47 seconds East, a distance
of 206.11 feet;
66. South 30 degrees 59 minutes 24 seconds East, a distance
of 377.55 feet;
67. South 29 degrees 33 minutes 11 seconds East, a distance
of 275.71 feet;
68. South 30 degrees 19 minutes 21 seconds East, a distance
of 254.07 feet;
69. South 33 degrees 15 minutes 30 seconds East, a distance
of 219.30 feet;
70. South 19 degrees 03 minutes 31 seconds East, a distance
of 171.86 feet;
71. South 23 degrees 26 minutes 15 seconds East, a distance
of 272.19 feet;
72. South 12 degrees 44 minutes 43 seconds East, a distance
of 240.72 feet;
73. South 09 degrees 23 minutes 30 seconds East, a distance
of 186.65 feet;
74. South 01 degrees 54 minutes 46 seconds East, a distance
of 227.10 feet;
75. South 02 degrees 07 minutes 28 seconds East, a distance
of 126.95 feet;
76. South 02 degrees 18 minutes 17 seconds West, a distance
of 214.97 feet;
77. South 03 degrees 32 minutes 30 seconds West, a distance
of 166.10 feet;
78. South 06 degrees 43 minutes 00 seconds West, a distance
of 227.41 feet;
79. South 02 degrees 44 minutes 35 seconds West, a distance
of 227.16 feet;
80. South 11 degrees 11 minutes 12 seconds West, a distance
of 78.67 feet;
81. South 05 degrees 39 minutes 02 seconds West, a distance
of 321.46 feet;
82. South 05 degrees 41 minutes 54 seconds East, a distance
of 227.87 feet;
83. South 14 degrees 53 minutes 08 seconds West, a distance
of 319.90 feet;
84. South 07 degrees 34 minutes 26 seconds West, a distance
of 174.93 feet;
85. South 08 degrees 13 minutes 38 seconds West, a distance
of 212.27 feet;
86. South 03 degrees 31 minutes 38 seconds West, a distance
of 211.05 feet;
87. South 04 degrees 57 minutes 34 seconds West, a distance
of 190.45 feet;
88. South 13 degrees 55 minutes 15 seconds West, a distance
of 187.57 feet;
89. South 02 degrees 38 minutes 58 seconds West, a distance
of 111.89 feet;
90. South 04 degrees 24 minutes 56 seconds East, a distance
of 188.93 feet;
91. South 06 degrees 34 minutes 35 seconds East, a distance
of 211.19 feet;
92. South 29 degrees 48 minutes 08 seconds East, a distance
of 152.26 feet;
93. South 36 degrees 12 minutes 51 seconds East, a distance
of 223.21 feet;
94. South 44 degrees 17 minutes 23 seconds East, a distance
of 255.63 feet;
95. South 50 degrees 13 minutes 52 seconds East, a distance
of 260.97 feet;
96. South 49 degrees 01 minutes 22 seconds East, a distance
of 40.16 feet;
Thence, across aforesaid 3,719.849 acre tract, the following
three (3) courses:
97. North 76 degrees 00 minutes 11 seconds West, a distance
of 2,189.13 feet;
98. North 73 degrees 24 minutes 35 seconds West, a distance
of 140.77 feet;
99. 5,835.67 feet along the arc of a curve to the left, said
curve having a central angle of 63 degrees 19 minutes 32 seconds, a
radius of 5,280.00 feet and a chord that bears South 76 degrees 18
minutes 17 seconds West, a distance of 5,543.15 feet to the Point of
Beginning and containing 2,717.3 acres of land.
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
8079A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8079A.0307 to read as
follows:
Sec. 8079A.0307. 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, 2023.
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