Bill Text: TX SB1877 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of the Venable Ranch Municipal Utility District No. 1 of Denton County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB1877 Detail]
Download: Texas-2013-SB1877-Introduced.html
Bill Title: Relating to the creation of the Venable Ranch Municipal Utility District No. 1 of Denton County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB1877 Detail]
Download: Texas-2013-SB1877-Introduced.html
83R20545 AED-F | ||
By: Estes | S.B. No. 1877 |
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relating to the creation of the Venable Ranch Municipal Utility | ||
District No. 1 of Denton County; granting a limited power of eminent | ||
domain; 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 F, Title 6, Special District Local Laws | ||
Code, is amended by adding Chapter 8469 to read as follows: | ||
CHAPTER 8469. VENABLE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF | ||
DENTON COUNTY | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 8469.001. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "City" means the City of Aubrey, Texas. | ||
(3) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(4) "Director" means a board member. | ||
(5) "District" means the Venable Ranch Municipal | ||
Utility District No. 1 of Denton County. | ||
Sec. 8469.002. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 8469.003. CONFIRMATION AND DIRECTORS' 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. 8469.004. CONSENT OF CITY REQUIRED. The temporary | ||
directors may not hold an election under Section 8469.003 until: | ||
(1) the city has consented by ordinance or resolution | ||
to the creation of the district and to the inclusion of land in the | ||
district; and | ||
(2) the city and an owner or owners of land in the | ||
district have entered into a development agreement under Section | ||
212.172, Local Government Code. | ||
Sec. 8469.005. 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. 8469.006. 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. 8469.051. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of five elected directors. | ||
(b) Except as provided by Section 8469.052, directors serve | ||
staggered four-year terms. | ||
Sec. 8469.052. TEMPORARY DIRECTORS. (a) On or after | ||
September 1, 2013, 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 8469.003; or | ||
(2) September 1, 2017. | ||
(c) If permanent directors have not been elected under | ||
Section 8469.003 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 8469.003; 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. 8469.101. GENERAL POWERS AND DUTIES. The district has | ||
the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 8469.102. 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. 8469.103. 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. 8469.104. 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. 8469.105. 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. 8469.106. DIVISION OF DISTRICT. (a) The district may | ||
be divided into two or more new districts only if the district: | ||
(1) has no outstanding bonded debt; and | ||
(2) is not imposing ad valorem taxes. | ||
(b) 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. | ||
(c) Any 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 creating this | ||
chapter. | ||
(d) 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. | ||
(e) The board may adopt an order dividing the district | ||
before or after the date the board holds an election under Section | ||
8469.151 to authorize the issuance of bonds. | ||
(f) An order dividing the district must: | ||
(1) name each new district; | ||
(2) include the metes and bounds description of the | ||
territory of each new district; | ||
(3) appoint temporary directors for each new district; | ||
and | ||
(4) provide for the division of assets and liabilities | ||
between or among the new districts. | ||
(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) Any new district created by the division of the district | ||
shall hold a confirmation and directors' election as required by | ||
Section 8469.003. | ||
(i) Any 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. | ||
(j) If the creation of the new district is confirmed, the | ||
new district shall provide the election date and results to the | ||
commission. | ||
Sec. 8469.107. FIREFIGHTING SERVICES. Notwithstanding | ||
Section 49.351(a), Water Code, the district may, as authorized by | ||
Section 59(f), Article XVI, Texas Constitution, and Section 49.351, | ||
Water Code: | ||
(1) establish, operate, and maintain a fire | ||
department; | ||
(2) contract with another political subdivision for | ||
the joint operation of a fire department; or | ||
(3) contract with any other person to perform | ||
firefighting services in the district and may issue bonds and | ||
impose taxes to pay for the department and the activities. | ||
Sec. 8469.108. FEES AND CHARGES. (a) The district may | ||
adopt and enforce all necessary charges, mandatory fees, or | ||
rentals, in addition to taxes, for providing or making available | ||
any district facility or service, including firefighting | ||
activities provided under Section 8469.107. | ||
(b) To enforce payment of an unpaid fee or charge due to the | ||
district, on the request of the district, a retail public utility, | ||
as defined by Section 13.002, Water Code, providing water or sewer | ||
service to a customer in the district shall terminate the service. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
Sec. 8469.151. 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 8469.153. | ||
(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. 8469.152. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 8469.151, 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. 8469.153. 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. 8469.201. 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. 8469.202. 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. 8469.203. 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. | ||
SUBCHAPTER F. ANNEXATION BY CITY | ||
Sec. 8469.251. EFFECT OF ANNEXATION BY CITY. (a) | ||
Notwithstanding any other law, if all of the territory of the | ||
district is annexed by the city into the corporate limits of the | ||
city before the date of the election held to confirm the creation of | ||
the district and the district is confirmed at that election, the | ||
district may not be dissolved and continues in existence following | ||
annexation until: | ||
(1) water, sanitary sewer, and drainage improvements | ||
and roads have been constructed to serve at least 90 percent of the | ||
territory of the district capable of development; or | ||
(2) the board adopts a resolution consenting to the | ||
dissolution of the district. | ||
(b) Notwithstanding Section 54.016(f)(2), Water Code, an | ||
allocation agreement between the city and the district that | ||
provides for the allocation of the taxes or revenues of the district | ||
and the city following the date of inclusion of the district's | ||
territory in the corporate limits of the city may provide that the | ||
total annual ad valorem taxes collected by the city and the district | ||
from taxable property within the city's corporate limits may exceed | ||
the city's ad valorem tax on that property. | ||
SECTION 2. The Venable Ranch Municipal Utility District No. | ||
1 of Denton County initially includes all the territory contained | ||
in an area to be described by a metes and bounds description. | ||
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 | ||
8469, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 8469.109 to read as follows: | ||
Sec. 8469.109. 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 September 1, 2013. |