Bill Text: TX HB3374 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the powers and duties of the Cleveland Municipal Utility District No. 1 of Montgomery County, Texas; providing authority to issue bonds; providing authority to impose a tax.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-06-14 - Effective immediately [HB3374 Detail]
Download: Texas-2019-HB3374-Enrolled.html
H.B. No. 3374 |
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relating to the powers and duties of the Cleveland Municipal | ||
Utility District No. 1 of Montgomery County, Texas; providing | ||
authority to issue bonds; providing authority to impose a tax. | ||
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 8073 to read as follows: | ||
CHAPTER 8073. CLEVELAND MUNICIPAL UTILITY DISTRICT NO. 1 OF | ||
MONTGOMERY COUNTY, TEXAS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 8073.0101. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "District" means the Cleveland Municipal Utility | ||
District No. 1 of Montgomery County, Texas. | ||
Sec. 8073.0102. 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. | ||
Sec. 8073.0103. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT | ||
REINVESTMENT ZONE. (a) All or part of the district is eligible to | ||
be included in a tax increment reinvestment zone created under | ||
Chapter 311, Tax Code. | ||
(b) If the City of Cleveland has created or creates a tax | ||
increment reinvestment zone described by Subsection (a) that | ||
includes all or part of the territory of the district, the City of | ||
Cleveland and the board of directors of the zone, by contract with | ||
the district, may grant money to the district from the tax increment | ||
fund to be used for a permissible purpose of the district, including | ||
the right to pledge the money as security for a bond or other | ||
obligation issued by the district. | ||
SUBCHAPTER B. POWERS AND DUTIES | ||
Sec. 8073.0201. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 8073.0202. 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. 8073.0203. 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. 8073.0204. 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. 8073.0205. 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, at the time the new district is created, contain only: | ||
(1) land within the initial boundaries of the | ||
district; or | ||
(2) land adjacent to the initial boundaries of the | ||
district if that adjacent land is: | ||
(A) not within the extraterritorial jurisdiction | ||
of a city; or | ||
(B) within the extraterritorial jurisdiction of | ||
a city and that adjacent land has been approved for inclusion in the | ||
district under a consent ordinance or resolution adopted by the | ||
city. | ||
(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) 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. | ||
(f) 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 Texas Commission on Environmental Quality and record the | ||
order in the real property records of each county in which the | ||
district is located. | ||
(g) Any new district created by the division of the district | ||
shall hold a confirmation and directors' election as required by | ||
Section 49.102, Water Code. | ||
(h) Except as provided by Subsection (c), municipal consent | ||
by a city is not required for the creation of any new district | ||
created under this section. | ||
(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 voters of a new district do not confirm the | ||
creation of the new district, the assets, obligations, territory, | ||
and governance of the new district revert to that of the original | ||
district. | ||
SUBCHAPTER C. BONDS AND OTHER OBLIGATIONS | ||
Sec. 8073.0301. 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, | ||
impact fees, revenue, contract payments, grants, revenue from a tax | ||
increment reinvestment zone created under Chapter 311, Tax Code, | ||
other district money, or any combination of those sources to pay for | ||
a road project authorized by Section 8073.0203. | ||
(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. 8073.0302. 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 Cleveland Municipal Utility District No. 1 | ||
of Montgomery County, Texas, retains all the 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 Cleveland Municipal | ||
Utility District No. 1 of Montgomery County, Texas, 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, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3374 was passed by the House on April | ||
26, 2019, by the following vote: Yeas 130, Nays 9, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3374 was passed by the Senate on May | ||
22, 2019, by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |