BILL ANALYSIS
S.B. 1607
By: Nelson
Intergovernmental Relations
03-30-95
Committee Report (Unamended)
BACKGROUND
The existing area in southwest Denton County, which is in the
extraterritorial jurisdiction of the City of Fort Worth, has water
distribution and wastewater collection lines that were constructed
in the mid-1980s, but have never been used. A new district is
needed in order to rehabilitate the existing infrastructure and
utility services.
PURPOSE
As proposed, S.B. 1607 creates the Southwest Denton County Road and
Utility District as a conservation and reclamation district; grants
powers of a municipal utility district to the district.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. CREATION OF DISTRICT. Creates the Southwest Denton
County Road and Utility District (district) as a conservation and
reclamation district and a road district under Section 59, Article
XVI, and Section 52, Article III, Texas Constitution. Provides
that the district is a governmental agency, a body politic and
corporate, and a political subdivision of this state.
SECTION 2. BOUNDARIES. Sets forth the boundaries of the district.
SECTION 3. DEFINITIONS. Defines "board" and "district."
SECTION 4. LEGISLATIVE FINDINGS. Sets forth the findings of the
legislature.
SECTION 5. GENERAL POWERS. (a) Authorizes the district to
exercise the powers set forth in Section 59, Article XVI, and
Section 52, Article III, Texas Constitution, the general laws of
the state, including Chapters 50 and 54, Water Code, applicable to
municipal utility districts created under Section 59, Article XVI,
Texas Constitution. Provides that this Act prevails over any
provision of the general law that is in conflict with or
inconsistent with this Act.
(b) Requires the district's rights, privileges, authority,
functions, and duties subject to the continuing right of
supervision of the state to be so exercised by and through the
Texas Natural Resource Conservation Commission (TNRCC).
Requires TNRCC to have authority over district bonds and
projects.
(c) Authorizes the district to annex or exclude territory
with the consent, by ordinance or resolution, of the governing
body of the City of Fort Worth.
SECTION 6. BOARD OF DIRECTORS. (a) Provides that the district is
governed by a three-member board of directors (board). Sets forth
qualifications for board members.
(b) Requires the initial directors to be appointed by TNRCC
and to serve until the first elected directors have qualified
for office.
(c) Sets forth requirements for the elections of board
members.
(d) Authorizes two members of the board to fill a vacancy by
appointment of a person to fill the vacancy for the unexpired
term. Requires TNRCC to appoint the necessary number of
persons to fill vacancies on the board.
(e) Provides that two directors constitute a quorum of the
board and a concurrence of two is sufficient in matters
pertaining to business.
(f) Provides that Chapter 54, Water Code, governs the
administrative matters relating to the district to the extent
that the chapter is not in conflict or inconsistent with this
Act.
SECTION 7. CONFIRMATION ELECTION. Requires the board to call and
hold a confirmation election to confirm establishment of the
district in the time and manner provided by Chapter 54, Water Code.
Authorizes the election to be called and held at the same time as
a bond election for the district. Provides that Section 41.001(a),
Election Code, does not apply to a confirmation election held as
provided by that section.
SECTION 8. ASSESSMENT AUTHORITY. (a) Authorizes the district to
levy an assessment against all taxable real property in the
district for the purpose of providing improvements.
(b) Authorizes the district to assess property in a certain
manner.
(c) Requires the board to adopt an assessment plan before
levying an assessment.
(d) Requires the board to adopt a proposed assessment plan
that includes, among other information, a proposed assessment
roll stating the assessment against each parcel of land in the
district, as determined by the assessment method the board
chooses. Requires the district to maintain on file and open
to public inspection an engineering report and the proposed
assessment roll.
(e) Requires the board to hold a public hearing on the
proposed plan until the board makes findings by resolution on
certain issues. Requires the district to publish notice of
the hearing in a newspaper and by direct mail to each property
owner in the district, at least 14 days before the day set for
the hearing. Sets forth information required in the notice.
(f) Provides that the failure of a property owner to receive
notice of the hearing and of the estimated assessment does not
affect the validity of the hearing or a subsequent assessment.
(g) Requires the board to hear and pass on any objection to
the proposed assessment plan or proposed assessment.
Authorizes the board to amend the proposed plan or assessment
any time before adjournment. Requires the board, by order, to
adopt a final assessment plan setting forth certain
information. Authorizes the district to provide for
assessments to be paid in periodic installments in amounts
necessary to pay the principal of and interest on bonds or
certificates of assessment as they accrue.
(h) Authorizes the district to issue bonds or certificates of
assessment secured by a pledge of funds received from the
assessment. Prohibits bonds or certificates of assessment
from being issued by the district until authorized by a
majority vote of the resident electors of the district voting
in an election. Sets forth provisions for the election.
Authorizes bonds and certificates to be issued in a certain
form and sets forth requirements in addition to those in
Chapter 54, Water Code.
(i) Requires the board, by order, to levy the assessment as
a special assessment on the property in the district after
adopting the final assessment plan.
(j) Requires the board to mail all landowners in the district
notice of the assessment levied on each owner's property.
Requires the notice to state the amount of the assessment and
method of payment. Provides that the validity of the
assessment is not affected by the failure of a landowner to
receive the notice.
(k) Authorizes a property owner to appeal the assessment
levied on the property to the board after the levy of an
assessment. Requires the property owner to file a notice of
appeal with the board by a certain date after the assessment
is levied. Requires the board to set a date to hear the
appeal. Authorizes the owner to appeal the board's decision
on the assessment to a court. Requires a property owner to
file notice of appeal no later than 30 days after the board's
final decision on the assessment. Provides that failure to
file notices in the time required results in a loss of the
right to appeal the assessment.
(l) Authorizes the board to make a new assessment or revise
an assessment to correct omissions or mistakes in an
assessment, to reassess an assessment against a parcel of land
set aside by a court, or to preserve equity of distribution.
(m) Prohibits the board from making changes in the final
assessment plan that would impair the district's ability to
meet all of the district's obligations that are secured by and
payable from the assessment.
(n) Provides that an assessment, any interest, incurred
expenses of collection, and incurred attorney's fees are a
first lien against assessed property until paid, on parity
with ad valorem tax liens and superior to all other liens.
Provides that the property owner is personally liable for
payment of the assessment and may pay at any time the entire
assessment, with accrued interest. Provides that the lien is
effective from the date the assessment is levied until it is
paid, and the district may enforce the lien in the same manner
as the court enforces an ad valorem tax lien. Provides that
liability for an assessment passes with the property on
transfer of ownership.
(o) Authorizes the district to issue and transfer
certificates of assessment for each lot or parcel. Requires
a district to provide a certificate of assessment reflecting
any change in the value of the original assessment for a
revised assessment. Sets forth required contents of a
certificate. Provides that a certificate is prima facie
evidence of all matters shown on the certificate. Authorizes
the certificate holder to enforce the assessment in the same
manner as the district may enforce assessments made under this
section.
(p) Requires a person who sells or conveys real property in
the district to supplement the notice to purchaser required by
Section 50.301, Water Code, to contain a statement relating to
the district's power to levy assessments. Sets forth the
required language for the statement.
SECTION 9. ADDITIONAL AUTHORITY. (a) Authorizes the district to
purchase, acquire, construct, own, operate, maintain, repair,
rebuild, add to, and improve roads for the benefit of the district.
(b) Authorizes the district to reimburse individuals or
entities for funds expended for roads or improvements that
will benefit the district and that has been or will be
dedicated to or used by the public; or purchase roads or
improvements that will benefit the district.
(c) Authorizes the district to issue bonds, notes, or other
obligations for constructing, acquiring, improving, or
maintaining roads and to levy a tax and collect taxes to pay
interest on bonds as authorized by Section 52, Article III,
Texas Constitution.
(d) Prohibits the district from issuing bonds secured by
taxes in an amount exceeding one-fourth of the assessed
valuation of real property in the district. Prohibits the
district from issuing bonds secured by taxes until the bonds
are authorized by a two-thirds majority of qualified voters in
an election called for that purpose.
(e) Sets forth the manner for holding elections.
(f) Authorizes the district to issue bonds or certificates of
assessment for road improvement purposes.
(g) Provides that the board has the powers provided by
Chapter 54J, Water Code, to define areas or designate certain
property to pay for improvements, facilities, or services that
primarily benefit the area. Provides that Chapter 54J, Water
Code, applies to the board's exercise of its powers, to the
extent not inconsistent with this Act.
(h) Authorizes the board to adopt the powers of a road
utility district operating under Article 6674r-1, V.T.C.S.
Provides that, to the extent not inconsistent with the Water
Code and the laws of this state, Article 6674r-1 applies to
the board's exercise of its powers under this subsection.
SECTION 10. Emergency clause.
Effective date: upon passage.