Bill Text: TX HB4636 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the creation of the Orchard Municipal Utility District No. 1; 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) 2019-06-10 - Effective immediately [HB4636 Detail]
Download: Texas-2019-HB4636-Enrolled.html
H.B. No. 4636 |
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relating to the creation of the Orchard Municipal Utility District | ||
No. 1; 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 8079 to read as follows: | ||
CHAPTER 8079. ORCHARD MUNICIPAL UTILITY DISTRICT NO. 1 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 8079.0101. 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 Orchard Municipal Utility | ||
District No. 1. | ||
Sec. 8079.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 8079.0103. 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. 8079.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
8079.0103 or 8079.0401, issue bonds, or incur debt 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. | ||
Sec. 8079.0105. 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. 8079.0106. 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. 8079.0201. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of five elected directors. | ||
(b) Except as provided by Section 8079.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 8079.0202. 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 8079.0103; 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 8079.0103 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 8079.0103; 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. 8079.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 8079.0302. 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. 8079.0303. 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. 8079.0304. 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. 8079.0305. 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. 8079.0306. 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 enacting 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 | ||
8079.0103 to confirm the district's creation. | ||
(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 8079.0103. | ||
(i) Municipal consent to the creation of the district and to | ||
the inclusion of land in the district granted under Section | ||
8079.0104 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. | ||
(j) 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. | ||
(k) If the creation of the new district is confirmed, the | ||
new district shall provide the election date and results to the | ||
commission. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
Sec. 8079.0401. 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 8079.0403. | ||
(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. 8079.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 8079.0401, 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. 8079.0403. 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. 8079.0501. 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. 8079.0502. 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. 8079.0503. 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 Orchard Municipal Utility District No. 1 | ||
initially includes all the territory contained in the following | ||
area: | ||
A Field Note Description of 1443 Acres of Land, more or less, | ||
being in the Heirs of L. Burknapp Survey, Abstract 109; B.B.B. & C. | ||
Railroad Company Survey No. 19, Abstract 135; German Emigration | ||
Company Survey, Abstract 181; W.T. Lightfoot Survey, Abstract 282 | ||
and Yandell Ferris Survey, Abstract 376, Fort Bend County, Texas. | ||
Beginning at a point in Long Lane marking the Southeast | ||
corner of the Gail Borden League, Abstract 12; said point being in a | ||
West line of this tract; | ||
THENCE, North, 784 feet, more or less, along the East line of | ||
said Gail Borden League, Abstract 12 and a West line of said L. | ||
Burknapp Survey, Abstact 109 and the centerline of Long Lane to a | ||
point marking the Northwest corner of this tract; | ||
THENCE, East, 2403 feet, more or less, along the North line of | ||
said Heirs of L. Burknapp Survey, Abstract 109 and the centerline of | ||
Roper Road to a point for corner; | ||
THENCE, South, 1212 feet, more or less, along the West line of | ||
the said W.T. Lightfoot Survey, Abstract 282 to a point for corner; | ||
THENCE, East, 3662 feet, more or less, along the South line of | ||
five (5) parcels owned by others to a point in the East line of said | ||
W.T. Lightfoot Survey, Abstract 282 for re-entrant corner; | ||
THENCE, North, 1298 feet, more or less, to the Northwest | ||
corner of the said German Emigration Company Survey, Abstract 181 | ||
for corner; | ||
THENCE, East, 8340 feet, more or less, along the North line of | ||
said German Emigration Company Survey, Abstract 181 and the North | ||
line of the said B.B.B. & C. Railroad Company Survey No. 19, | ||
Abstract 135 to the Northeast corner of said B.B.B. & C. Railroad | ||
Company Survey No. 19, Abstract 135 and Southeast corner of the | ||
Sarah Kennedy League, Abstract 45 and being in the West line of the | ||
Nancy Spencer Survey, Abstract 88; | ||
THENCE, South, along the East line of said B.B.B. & C. | ||
Railroad Company Survey No. 19, Abstract 135 and the Yandell Ferris | ||
Survey, Abstract 376 and being in the West line of the Nancy Spencer | ||
League, Abstract 88, 4586 feet, more or less to a point for corner | ||
in a Westerly City of Rosenberg 5280 foot Radius Extra-Territorial | ||
Jurisdiction Line for corner; | ||
THENCE, South 35deg.18' West, 1959 feet more or less, along | ||
said City of Rosenberg 5280 foot Radius Extra-Territorial | ||
Jurisdiction Line curve to the left, to a point in the Northeast | ||
line of the G.C. & S.F. Railroad right-of-way for corner; | ||
THENCE, North 70deg.24' West, 845 feet, more or less, along | ||
said Northeast line of the G.C. & S.F. Railroad right-of-way to a | ||
point for corner; | ||
THENCE, South, crossing the G.C. & S.F. Railroad | ||
right-of-way and State Highway No. 36 then along the East line of | ||
the 85 Acre Lot 2, a total distance of 2426 feet, more or less, to | ||
the Southeast corner of the Wade McNeill call 85 Acre Lot 2 of the | ||
J.M. MOORE SUBDIVISION (Volume 109, Page 585; Deed Records); | ||
THENCE, West, 1479 feet, more or less, to the Southwest | ||
corner of said 85 Acre Tract; | ||
THENCE, North, 2695 feet, more of less, to a point in the | ||
Southwest line of State Highway No. 36 marking the Northwest corner | ||
of said McNeill Tract; | ||
THENCE, North 70deg.14' West, 3493 feet, more or less, along | ||
said Southwest line of said State Highway No. 36 to a point in the | ||
West line of said Yandell Ferris Survey and East line of the said | ||
German Emigration Company Survey, Abstract 181 for corner; | ||
THENCE, South, 978 feet, along the West line of said Yandell | ||
Ferris Survey and East line of the German Emigration Company | ||
Survey, Abstract 181 to the Northeast corner of the Heirs of L. | ||
Burknapp Survey, Abstract 109 for corner; | ||
THENCE, West, 1638 feet, more or less, along the South line of | ||
said German Emigration Company Survey, Abstract 181 and a North | ||
line of said Heirs of L. Burknapp Survey, Abstract 109 to a point in | ||
the East line of said W.T. Lightfoot Survey, Abstract 283 for | ||
corner; | ||
THENCE, North, 1577 feet, more or less, along the West line of | ||
the German Emigration Company Survey, Abstract 181 and East line of | ||
said W.T. Lightfoot Survey, Abstract 283 to a point in the Southwest | ||
line of the State Highway No. 36 for corner; | ||
THENCE, North 70deg.17' West, 390 feet, more or less along | ||
the North line of said W.T. Lightfoot Survey, Abstract 283 and South | ||
line of the said W.T. Lightfoot Survey, Abstract 282 for corner; | ||
THENCE, West, 3393 feet, along said North line of said W.T. | ||
Lightfoot Survey, Abstract 283 and South line of the W.T. Lightfoot | ||
Survey, Abstract 282 to the Southwest corner of said W.T. Lightfoot | ||
Survey, Abstract 282; | ||
THENCE, North, 564 feet, more or less, to angle point; | ||
THENCE, North 8deg.26' East, 514.22 feet, more or less, to a | ||
point in the Southwest line of said State Highway No. 36 for corner; | ||
THENCE, North 70deg.08' West, 2524.26 feet, more or less, | ||
along the Southwest line of said State Highway No. 36 to a point | ||
marking the Southwest corner for this tract; | ||
THENCE, North, crossing State Highway No. 36 and said G.C. & | ||
S.F. Railroad right-of-way, then along the centerline of Long Lane | ||
in all, 915 feet, more or less, to the place of beginning and | ||
containing 1443 Acres of Land, more or less. | ||
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 | ||
8079, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 8079.0307 to read as follows: | ||
Sec. 8079.0307. 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, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 4636 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 125, Nays 15, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 4636 was passed by the Senate on May | ||
21, 2019, by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |