87R18008 SLB-F
	By: Springer	S.B. No. 2206

	A BILL TO BE ENTITLED
	AN ACT
	relating to the powers and duties of the Morningstar Ranch
	Municipal Utility District No. 1; providing authority to impose a
	tax and issue bonds.
	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 8490 to read as follows:
	CHAPTER 8490. MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 8490.0101.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "District" means the Morningstar Ranch Municipal
	Utility District No. 1.
	Sec. 8490.0102.  NATURE AND PURPOSES OF DISTRICT. (a) The
	district is a municipal utility district created under Section 59,
	Article XVI, Texas Constitution.
	(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. 8490.0201.  GENERAL POWERS AND DUTIES. The district
	has the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 8490.0202.  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. 8490.0203.  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. 8490.0204.  ROAD STANDARDS AND REQUIREMENTS. (a) A
	road project must meet all applicable construction standards 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 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. 8490.0205.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
	DESIGNATED PROPERTY. Notwithstanding the acreage requirement
	under Section 54.801(a), Water Code, the district may define areas
	or designate certain property of the district as provided by
	Subchapter J, Chapter 54, Water Code, 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. Notwithstanding any other provision of law, a defined area
	may include a noncontiguous tract.
	SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS
	Sec. 8490.0301.  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,
	revenue, contract payments, grants, or other district money, or any
	combination of those sources, to pay for a road project authorized
	by Section 8490.0203.
	(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.
	(c)  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.
	Sec. 8490.0302.  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.
	SECTION 2.  The Morningstar Ranch Municipal Utility District
	No. 1 retains all rights, powers, privileges, authority, duties,
	and functions that it had before the effective date of this Act.
	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.  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, 2021.