Bill Text: TX HB5365 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the creation of the Austin County Municipal Utility District No. 3; 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 [HB5365 Detail]
Download: Texas-2023-HB5365-Enrolled.html
H.B. No. 5365 |
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relating to the creation of the Austin County Municipal Utility | ||
District No. 3; 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 7984A to read as follows: | ||
CHAPTER 7984A. AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 3 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7984A.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. 3. | ||
Sec. 7984A.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 7984A.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. 7984A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
7984A.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. 7984A.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. 7984A.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. 7984A.0201. GOVERNING BODY; TERMS. (a) The district | ||
is governed by a board of five elected directors. | ||
(b) Except as provided by Section 7984A.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 7984A.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 7984A.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 7984A.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 7984A.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. 7984A.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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 | ||
7984A.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. 7984A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 7984A.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. 7984A.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. 7984A.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. 7984A.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. 7984A.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. 3 initially includes all the territory contained in the | ||
following area: | ||
Being 536.9 acres of land situated in the Miles N. Allen | ||
Survey, Abstract No. 3, the J.B. Allen Survey, Abstract No. 420 and | ||
the R.M. Moore Survey, Abstract No. 381, in Austin County, Texas, | ||
said 536.9 acre tract being all of that certain 536.9227 acre tract | ||
of land recorded in the name of NESH FARMS HWY. 36, LLC in Document | ||
Number 214030, Official Public Records of Austin County, Texas | ||
(O.P.R.A.C.), said 536.9 acre tract being more particularly | ||
described by metes and bounds as follows; (bearing are based on the | ||
southwesterly Right-of-Way (R.O.W.) line of State Highway 36 (SH | ||
36) being South 36 degrees 42 minutes 44 seconds East); | ||
Beginning at the northerly corner of said 536.9227 acre | ||
tract, being the northeasterly corner of a called 4.97 acre tract of | ||
land recorded in Document No. 094014, O.P.R.A.C., also being on the | ||
southwesterly R.O.W. line of said SH 36; | ||
Thence, with the northeasterly line of said 536.9227 acre | ||
tract and the southwesterly R.O.W. line of said SH 36, South 36 | ||
degrees 42 minutes 44 seconds East, a distance of 3,479.28 feet to | ||
the northeasterly corner of said 536.9227 acre tract, being the | ||
most northerly corner of a called 270.50 acre tract as shown on map | ||
recorded in Volume 572, Page 371 of the Austin County Deed Records | ||
(A.C.D.R.); | ||
Thence, with the common line between said 536.9227 acre tract | ||
and said 270.50 acre tract, the following three (3) courses and | ||
distances: | ||
1. South 43 degrees 51 minutes 00 seconds West, a distance | ||
of 3,633.17 feet; | ||
2. North 47 degrees 15 minutes 59 seconds West, a distance | ||
of 859.26 feet; | ||
3. South 42 degrees 47 minutes 12 seconds West, a distance | ||
of 4,003.07 feet to the most southerly corner of said 536.9227 acre | ||
tract, being on the northerly line of a called 712.06 acre tract of | ||
land, Property ID No. 10822, Austin County Appraisal District; | ||
Thence, with the southwesterly line of said 536.9227 acre | ||
tract and the northeasterly line of said 712.06 acre tract and the | ||
northeasterly line of a called 332.00 acre tract of land described | ||
in deed recorded in Volume 776, Page 340, A.C.D.R., North 47 degrees | ||
22 minutes 51 seconds West, a distance of 2,495.02 feet to the | ||
westerly corner of said 536.9227 acre tract, being the | ||
southeasterly corner of a called 27.85 acre tract of land described | ||
in deed recorded in Volume 449, Page 507, A.C.D.R.; | ||
Thence, with the northwesterly line of said 536.9227 acre | ||
tract, North 42 degrees 47 minutes 29 seconds East, a distance of | ||
8,277.81 feet to the Point of Beginning and containing 536.9 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 | ||
7984A, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 7984A.0307 to read as | ||
follows: | ||
Sec. 7984A.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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 5365 was passed by the House on May 9, | ||
2023, by the following vote: Yeas 106, Nays 36, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 5365 was passed by the Senate on May | ||
21, 2023, by the following vote: Yeas 27, Nays 4. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |