Bill Text: TX HB5349 | 2023-2024 | 88th Legislature | Engrossed

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

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Bill Title: Relating to the creation of the Austin County Municipal Utility District No. 4; 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) 2023-06-11 - Effective immediately [HB5349 Detail]

Download: Texas-2023-HB5349-Engrossed.html

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88R18855 MP-F
By: Kitzman H.B. No. 5349

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Austin County Municipal Utility
District No. 4; 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 7991A to read as follows:
CHAPTER 7991A. AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 4
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7991A.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 Austin County Municipal
Utility District No. 4.
Sec. 7991A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7991A.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. 7991A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7991A.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. 7991A.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. 7991A.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. 7991A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7991A.0202, directors
serve staggered four-year terms.
Sec. 7991A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Micah Burson;
(2) Cullen Weishuhn;
(3) Nick Tirey;
(4) Chris Beckendorff; and
(5) Mills Duncan.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7991A.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 7991A.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 7991A.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. 7991A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7991A.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. 7991A.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. 7991A.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. 7991A.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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7991A.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
7991A.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. 7991A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7991A.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. 7991A.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. 7991A.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. 7991A.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. 7991A.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. The Austin County Municipal Utility District
No. 4 initially includes all the territory contained in the
following area:
BEING all that certain tract or parcel of land containing
113.676 acres of land, more or less, in the J. K. Lee Survey,
Abstract 353, Austin County, Texas, same being out of the residue of
that certain Tract 1 called 160 acre parcel East Quarter of School
Section 144, Patent No. 474, Volume 12 as described by instrument
recorded in Volume 288, Page 575 of the Deed Records of Austin
County, Texas, said 113.676 acre tract being more particularly
described by metes and bounds, as follows, to wit:
Commencing for reference at a 1/2 inch iron rod found for
corner, same being the most easterly corner of the residue of that
certain called 6.162 acre parcel as described by instrument
recorded in Clerk's File No. 981607 of the Official Records of
Austin County, Texas, same being the most northerly corner of that
certain called 5.000 acre parcel as described by instrument
recorded in Clerk's File No. 191600 of the Official Records of
Austin County, Texas, same being in the southwesterly occupied
right-of-way line of Sens Road (right-of-way varies), same being a
northeasterly exterior corner of that certain Parcel "B" called
100.000 acre parcel this day herein described, from which a 1/2 inch
iron rod found for corner bears South 45 degrees 00 minutes 00
seconds East, a distance of 2,154.29 feet (called South 45 degrees
00 minutes 00 seconds East, 2,154.31 feet) (Basis of Bearings),
same being a northwesterly interior corner of that certain called
12.631 acre parcel as described by instrument recorded in Clerk's
File No. 007898 of the Official Records of Austin County, Texas,
same being the most easterly corner of that certain Parcel "A"
called 113.676 acre parcel this day herein described, and same
being the most easterly corner of the residue of that certain Tract
1 called 160 acre parcel as described by instrument recorded in
Volume 288, Page 577 of the Deed Records of Austin County, Texas;
THENCE, departing said occupied southwesterly right-of-way
line of Sens Road and with said common line, South 31 degrees 02
minutes 31 seconds West (called South 31 degrees 02 minutes 31
seconds West) pass at a distance of 235.66 feet (called 235.61 feet)
a 1/2 inch iron rod found for corner, same being the most southerly
corner of the residue of said called 6.162 acre parcel, same being
an easterly exterior corner of the residue of said Tract 1, in all a
distance of 418.23 feet (called 418.23 feet) to a 1/2 inch iron rod
found for corner, same being the most westerly corner of said
called 5.000 acre parcel, same being an easterly interior corner of
that certain Parcel "B" this day herein described, same being an
easterly interior corner of the residue of said Tract 1, and same
being an easterly interior corner of the tract herein described;
THENCE, continuing with said common line, South 45 degrees 09
minutes 08 seconds East, a distance of 126.36 feet (called South 45
degrees 09 minutes 08 seconds East) to POINT OF BEGINNING and a
northerly exterior corner of the tract herein described, same being
the most easterly southeast exterior corner of said Parcel "B" this
day herein described, same being in the southwesterly line of said
called 5.000 acre parcel;
THENCE, continuing with said common line, South 45 degrees 09
minutes 08 seconds East, a distance of 408.08 feet (called South 45
degrees 09 minutes 08 seconds East) to a 1/2 inch iron rod found for
corner, same being the most southerly corner of said called 5.000
acre parcel, same being a northerly interior corner of the residue
of said Tract 1, and same being a northerly interior corner of the
tract herein described;
THENCE, continuing with said common line, North 31 degrees 46
minutes 52 seconds East, a distance of 415.47 feet (called North 31
degrees 46 minutes 52 seconds East, 415.47 feet) to a 1/2 inch iron
rod found for corner, same being the most easterly corner of said
called 5.000 acre parcel, same being a northerly exterior corner of
said Tract 1, same being in the southwesterly occupied
right-of-way of Sens Road, and same being a northerly exterior
corner of the tract herein described;
THENCE, with said southwesterly occupied right-of-way line
of said Sens Road and said common line, South 45 degrees 00 minutes
00 seconds East (called South 45 degrees 00 minutes 00 seconds East)
pass at a distance of 1,579.97 feet a 1/2 inch iron rod found for
corner, same being the most northerly northwest corner of said
called 12.631 acre parcel, same being the apparent intersection of
the occupied southwesterly right-of-way line of Sens Road with the
northeasterly extension of Sens Road, departing said southwesterly
right-of-way line and said southeasterly right-of-way line of Sens
Road intersection, in all a distance of 1,613.98 feet to a 1/2 inch
iron rod found for corner, same being the most easterly southeast
corner of the occupied residue of said Tract 1 called 160 acre
parcel, same being a northwesterly interior corner of said called
12.631 acre parcel, and same being the most easterly corner of the
tract herein described;
THENCE, with said occupied common line, South 45 degrees 13
minutes 38 seconds West, a distance of 1,385.44 feet (called South
45 degrees 00 minutes 00 seconds West) to a 1/2 inch iron rod found
for corner, same being a southeasterly exterior corner of the
residue of said Tract 1, same being a northwesterly interior corner
of said called 12.631 acre parcel, and same being a southeasterly
exterior corner of the tract herein described;
THENCE, continuing with said common line, South 48 degrees 25
minutes 53 seconds West, a distance of 59.19 feet (called South 45
degrees 00 minutes 00 seconds West) to a 5/8 inch iron rod set for
corner at an old occupied fence intersection point, same being a
northwesterly exterior corner of said called 12.631 acre parcel,
same being in the southeasterly occupied line of the residue of said
Tract 1, and same being a southeasterly interior corner of the
tract herein described;
THENCE, continuing with said common line, South 44 degrees 40
minutes 55 seconds West, a distance of 364.58 feet (called South 45
degrees 00 minutes 00 seconds West) to a 1/2 inch iron rod found for
corner at an old occupied fence intersection, same being a
southeasterly exterior corner of the residue of said Tract 1, same
being the most westerly corner of said called 12.631 acre parcel,
and same being a northerly exterior corner of that certain Parcel 1
called 919.5371 acre parcel as described by instrument recorded in
Clerk's File No. 144449 of the Official Records of Austin County,
Texas, and same being a southeasterly exterior corner of the tract
herein described;
THENCE, continuing with said common occupied line, South 45
degrees 26 minutes 52 seconds West, a distance of 843.83 feet
(called South 45 degrees 00 minutes 00 seconds West) to a 1/2 inch
iron rod found for corner at an old fence intersection, same being
the most southerly corner of the residue of Tract 1, same being in a
northwesterly line of said Parcel 1 called 919.5371 acre parcel,
same being the most easterly corner of that certain called 943.659
acre parcel as described by instrument recorded in Clerk's File
No. 973704 of the Official Records of Austin County, Texas, and
same being the most southerly corner of the tract herein described;
THENCE, continuing with said occupied common line, North 44
degrees 38 minutes 14 seconds West, a distance of 412.60 feet
(called North 45 degrees 00 minutes 00 seconds West) to a 5/8 inch
iron rod set for corner at an old occupied fence intersection point,
same being in the southwesterly line of the residue of said Tract 1,
same being in the northeasterly line of said called 943.659 acre
parcel, and same being in the southwesterly line of the tract herein
described;
THENCE, continuing with said occupied common line, North 44
degrees 55 minutes 54 seconds West, a distance of 809.93 feet
(called North 45 degrees 00 minutes 00 seconds West) to a 3/8 inch
iron rod found for corner, same being in the southwesterly line of
said Tract 1, same being in the northeasterly line of said called
943.659 acre parcel, and same being in the southwesterly occupied
line of the tract herein described;
THENCE, continuing with said occupied common line, North 44
degrees 52 minutes 24 seconds West, a distance of 415.58 feet
(called North 45 degrees 00 minutes 00 seconds West) to a 5/8 inch
iron rod set for corner at an old fence intersection , same being in
the southwesterly line of the residue of said Tract 1, same being in
the northeasterly line of said called 943.659 acre parcel, and same
being in the southwesterly line of the tract herein described;
THENCE, continuing with said occupied common line, North 44
degrees 26 minutes 41 seconds West, a distance of 282.25 feet
(called North 45 degrees 00 minutes 00 seconds West) to a 5/8 inch
iron rod set for corner on the old occupied line, same being in the
southwesterly line of the residue of said Tract 1, same being in the
northeasterly line of said called 943.659 acre parcel, same being
the most southerly corner of said Parcel "B" called 100.00 acre
parcel this day herein described, and same being the most westerly
corner of the tract herein described;
THENCE, departing said common line, and with the southeast
line of said Parcel "B" called 100.000 acre parcel this day herein
described, North 45 degrees 10 minutes 34 seconds East, a distance
of 2,240.13 feet to the POINT OF BEGINNING of the tract herein
described and containing 113.676 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
7991A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7991A.0306 to read as
follows:
Sec. 7991A.0306. 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.