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Amend CSHB 2120 by adding the following appropriate numbered
SECTION and renumbering subsequent SECTIONS of the bill
accordingly:
SECTION ____. Chapter 54, Water Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. MUNICIPAL UTILITY DISTRICT ROAD PROJECTS
Sec. 54.771. DEFINITION. In this subchapter, "road project"
means the construction, acquisition, improvement, maintenance, or
operation of macadamized, graveled, or paved roads or turnpikes, or
improvements in aid of those roads or turnpikes.
Sec. 54.772. AUTHORITY; ELECTION TO PROVIDE POWER TO
UNDERTAKE ROAD PROJECTS INSIDE MUNICIPAL UTILITY DISTRICT. (a) A
board may order an election to be held in a municipal utility
district to determine whether the municipal utility district may
undertake road projects inside the municipal utility district.
(b) The ballot for the election must be printed to provide
for voting for or against providing the municipal utility district
the power to undertake road projects inside the municipal utility
district.
(c) If a majority of the persons voting in the election vote
in favor of the proposition, the municipal utility district may
undertake road projects inside the municipal utility district to
the extent authorized by Section 52, Article III, Texas
Constitution.
Sec. 54.773. BONDS; ELECTION. (a) A municipal utility
district may not issue bonds or otherwise lend its credit to finance
road projects except on approval of two-thirds or more of the voters
of the municipal utility district voting at an election held for
that purpose.
(b) The total amount of bonds and other obligations of the
municipal utility district issued or incurred to finance road
projects may not exceed one-fourth of the assessed valuation of
real property in the municipal utility district.
(c) The attorney general may approve under Section 49.184
bonds issued by a municipal utility district to finance road
projects as provided by this subchapter only if the municipal
utility district meets the requirements of Section 54.774.
Sec. 54.774. LIMITATION ON ISSUANCE OF BONDS. (a) A
municipal utility district that may undertake road projects under
this subchapter may issue bonds to finance road projects only if the
combined projected tax rate for the municipal utility district does
not exceed $1.50 per $100 of taxable value and the combined
no-growth tax rate for the municipal utility district does not
exceed $2.50 per $100 of taxable value.
(b) In this section:
(1) "Combined no-growth tax rate" means the sum of:
(A) the municipal utility district's no-growth
debt service tax rate;
(B) the no-growth debt service tax rate of all
overlapping political subdivisions that is specifically
attributable to water, wastewater, drainage, or roads;
(C) an equivalent surcharge tax rate for any
water or wastewater surcharge paid by the municipal utility
district;
(D) any municipal tax rate, other than the
municipality's debt service tax rate, specifically attributable to
water, wastewater, or drainage;
(E) any current or proposed maintenance tax rate
of the municipal utility district or an overlapping political
subdivision; and
(F) any contract tax rate, less any equivalent
tax rebate or other payment.
(2) "Combined projected tax rate" means the sum of:
(A) the municipal utility district's projected
debt service tax rate;
(B) the projected debt service tax rate of all
overlapping political subdivisions that is specifically
attributable to water, wastewater, drainage, or roads;
(C) an equivalent surcharge tax rate for any
water or wastewater surcharge paid by the municipal utility
district;
(D) any municipal tax rate, other than the
municipality's debt service tax rate, specifically attributable to
water, wastewater, or drainage;
(E) any current or proposed maintenance tax rate
of the municipal utility district or an overlapping political
subdivision; and
(F) any contract tax rate, less any equivalent
tax rebate or other payment.
(3) "No-growth debt service tax rate" means a debt
service tax rate for future years calculated based on the
applicable current taxable valuation.
(4) "Projected debt service tax rate" means a debt
service tax rate for future years calculated based on the
applicable projected taxable valuation for each year.
(c) The calculation of tax rates under this section, other
than projected tax rates, must be based on the most recent taxable
values certified by the appropriate appraisal district. The
calculation of projected tax rates must be based on projected
increases in those taxable values.
Sec. 54.775. MUNICIPAL OR COUNTY CONSENT AND STANDARDS. (a)
A municipal utility district may not undertake a road project
unless each municipality in whose corporate limits or
extraterritorial jurisdiction the municipal utility district is
located consents by ordinance or resolution. If the municipal
utility district is located outside the extraterritorial
jurisdiction of a municipality, the municipal utility district may
not undertake a road project unless each county in which the
municipal utility district is located consents by ordinance or
resolution.
(b) A road project must meet or exceed all applicable
construction standards, zoning and subdivision requirements, and
regulatory ordinances of each municipality in whose corporate
limits or extraterritorial jurisdiction the municipal utility
district is located. If the municipal utility district is located
outside the extraterritorial jurisdiction of a municipality, a road
project must meet or exceed all applicable construction standards,
zoning and subdivision requirements, and regulatory ordinances of
each county in which the municipal utility district is located.
Sec. 54.776. MAINTENANCE OF ROADS. A municipal utility
district that may undertake road projects under this subchapter
shall maintain all roads constructed or purchased by the municipal
utility district unless the county or another political subdivision
assumes responsibility for maintaining the roads.
Sec. 54.777. CERTAIN AUTHORITY OF TEXAS COMMISSION ON
ENVIRONMENTAL QUALITY NOT APPLICABLE. Sections 49.181 and 49.182 do
not apply to a road project undertaken by the municipal utility
district or to bonds issued by the municipal utility district to
finance the project.