Bill Text: TX HB4659 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the authority of the City of Kemah Municipal Management District No. 1 to provide water and sewer service, exercise certain powers, issue bonds, and impose fees, taxes, and assessments and to the validation of certain acts and proceedings of the district.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-06-15 - Effective immediately [HB4659 Detail]

Download: Texas-2021-HB4659-Enrolled.html

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H.B. No. 4659

AN ACT
relating to the authority of the City of Kemah Municipal Management
District No. 1 to provide water and sewer service, exercise certain
powers, issue bonds, and impose fees, taxes, and assessments and to
the validation of certain acts and proceedings of the district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3976.0105(b), Special District Local
Laws Code, is amended to read as follows:
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake 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 contract;
(3) authority to borrow money or issue bonds or other
obligations [described by Section 3976.0501] or to pay the
principal and interest of the bonds or other obligations;
(4) right to impose or collect an assessment, or
collect other revenue; or
(5) legality or operation.
SECTION 2. Subchapter E, Chapter 3976, Special District
Local Laws Code, is amended by adding Sections 3976.0503,
3976.0504, 3976.0505, 3976.0506, and 3976.0507 to read as follows:
Sec. 3976.0503. TAX ELECTION REQUIRED. The district must
hold an election in the manner provided by Chapter 49, Water Code,
or, if applicable, Chapter 375, Local Government Code, to obtain
voter approval before the district may impose an ad valorem tax.
Sec. 3976.0504. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election under Section 3976.0503, the district may impose an
operation and maintenance tax on taxable property in the district
in the manner provided by Section 49.107, Water Code, for any
district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the operation and maintenance
tax rate. The rate may not exceed the rate approved at the
election.
Sec. 3976.0505. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
terms determined by the board.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
Sec. 3976.0506. BONDS SECURED BY REVENUE OR CONTRACT
PAYMENTS. The district may issue, without an election, bonds
secured by:
(1) revenue other than ad valorem taxes, including
contract revenues; or
(2) contract payments, provided that the requirements
of Section 49.108, Water Code, have been met.
Sec. 3976.0507. BONDS SECURED BY AD VALOREM TAXES;
ELECTIONS. (a) If authorized at an election under Section
3976.0503, the district may issue bonds payable from ad valorem
taxes.
(b) Section 375.243, Local Government Code, does not apply
to the district.
(c) 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 annual ad valorem tax, without
limit as to rate or amount, for each year that all or part of the
bonds are outstanding as required and in the manner provided by
Sections 54.601 and 54.602, Water Code.
(d) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
SECTION 3. The following provisions of the Special District
Local Laws Code are repealed:
(1) Sections 3976.0205, 3976.0206, 3976.0304,
3976.0305, 3976.0501, and 3976.0502; and
(2) Sections 3976.0208(c) and (d).
SECTION 4. (a) The legislature validates and confirms all
governmental acts and proceedings of the City of Kemah Municipal
Management District No. 1 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 5. (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 6. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4659 was passed by the House on May
14, 2021, by the following vote: Yeas 109, Nays 36, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4659 was passed by the Senate on May
27, 2021, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor