Bill Text: TX HB5396 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the powers and duties of the Stanley Lake Municipal Utility District; providing authority to issue bonds; providing authority to impose fees and taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2023-06-12 - Effective immediately [HB5396 Detail]
Download: Texas-2023-HB5396-Enrolled.html
| H.B. No. 5396 | ||
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| relating to the powers and duties of the Stanley Lake Municipal | ||
| Utility District; providing authority to issue bonds; providing | ||
| authority to impose 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 7983A to read as follows: | ||
| CHAPTER 7983A. STANLEY LAKE MUNICIPAL UTILITY DISTRICT | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 7983A.0101. DEFINITIONS. In this chapter: | ||
| (1) "Board" means the district's board of directors. | ||
| (2) "District" means the Stanley Lake Municipal | ||
| Utility District. | ||
| Sec. 7983A.0102. NATURE OF DISTRICT. The district is a | ||
| municipal utility district created under Section 59, Article XVI, | ||
| Texas Constitution. | ||
| Sec. 7983A.0103. 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. | ||
| SUBCHAPTER B. POWERS AND DUTIES | ||
| Sec. 7983A.0201. GENERAL POWERS AND DUTIES. (a) The | ||
| district has the powers and duties necessary to accomplish the | ||
| purposes for which the district is created. | ||
| (b) 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. 7983A.0202. 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. 7983A.0203. 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. | ||
| SUBCHAPTER C. DEFINED AREAS | ||
| Sec. 7983A.0301. 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. 7983A.0302. PROCEDURE FOR ELECTION. (a) Before the | ||
| district may impose an ad valorem tax applicable only to the defined | ||
| area or designated property 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 issues to the voters on the same | ||
| ballot to be used in another election. | ||
| Sec. 7983A.0303. 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. 7983A.0304. TAXES FOR SERVICES, IMPROVEMENTS, AND | ||
| FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter | ||
| approval and adoption of the order described by Section 7983A.0303, | ||
| 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. 7983A.0305. ISSUANCE OF BONDS FOR DEFINED AREA OR | ||
| DESIGNATED PROPERTY. After the order under Section 7983A.0303 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. | ||
| SUBCHAPTER D. BONDS AND OTHER OBLIGATIONS | ||
| Sec. 7983A.0401. AUTHORITY TO ISSUE BONDS AND OTHER | ||
| OBLIGATIONS FOR ROAD PROJECTS. (a) 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 a road | ||
| project authorized by Section 7983A.0202. | ||
| (b) 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. 7983A.0402. 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. 7983A.0403. 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 Stanley Lake Municipal Utility District | ||
| retains all rights, powers, privileges, authority, duties, and | ||
| functions that it had before the effective date of this Act. | ||
| SECTION 3. (a) The legislature validates and confirms all | ||
| governmental acts and proceedings of the Stanley Lake Municipal | ||
| Utility District that were taken before the effective date of this | ||
| Act. | ||
| (b) This section does not apply to any matter that on the | ||
| effective date of this Act: | ||
| (1) is involved in litigation if the litigation | ||
| ultimately results in the matter being held invalid by a final court | ||
| judgment; or | ||
| (2) has been held invalid by a final court judgment. | ||
| SECTION 4. (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 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. 5396 was passed by the House on May | ||
| 12, 2023, by the following vote: Yeas 102, Nays 38, 2 present, not | ||
| voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 5396 was passed by the Senate on May | ||
| 24, 2023, by the following vote: Yeas 27, Nays 3, 1 present, not | ||
| voting. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: _____________________ | ||
| Date | ||
| _____________________ | ||
| Governor | ||
