By:  Eiland                                                       H.B. No. 3503


A BILL TO BE ENTITLED
AN ACT
relating to road utility district and navigation district powers of Galveston County Municipal Utility District No. 52, including the authority to impose taxes and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. DEFINITIONS. In this Act: (1) "Board" means the board of directors of the Galveston County Municipal Utility District No. 52. (2) "Commission" means the Texas Commission on Environmental Quality. (3) "District" means Galveston County Municipal Utility District No. 52. SECTION 2. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The legislature finds that all of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under the powers conferred by Section 52, Article III, and Section 59, Article XVI, Texas Constitution, and that the district is created to serve a public use and benefit. (b) The district exists for the following purposes: (1) the purposes of a municipal utility district as provided pursuant to Section 54.012, Water Code; (2) the purposes of road utility districts created pursuant to Section 52, Article III, Texas Constitution, and operating pursuant to Chapter 441, Transportation Code, including the purpose of constructing, acquiring, improving, maintaining and operating roads and road facilities as defined in Chapter 441, Transportation Code; and (3) the purposes of navigation districts created pursuant to Section 59, Article XVI, Texas Constitution, and operating pursuant to Chapters 60 and 62, Water Code. SECTION 3. CONSTRUCTION OF ACT. This Act prevails over any provision of general law that is in conflict with or inconsistent with this Act, including any provision of Chapter 49 or 54, Water Code. SECTION 4. APPLICABILITY OF OTHER LAW. (a) If any provision of general law relating to road utility districts is in conflict or inconsistent with this Act or Chapter 49 or 54, Water Code, this Act and Chapters 49 and 54, Water Code, prevail. (b) This Act prevails over any provision of general law that is in conflict or inconsistent with this Act, including any provision of Chapter 49 or 54, Water Code. SECTION 5. POWERS OF DISTRICT. The district retains all the rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act. SECTION 6. SPECIFIC ROAD POWERS OF DISTRICT. (a) The district may purchase, construct, acquire, own, operate, maintain, improve or extend inside and outside its boundaries roads and road facilities as defined in Chapter 441, Transportation Code, as authorized by Section 52, Article III, of the Texas Constitution. (b) In accordance with Article III, Section 52, of the Texas Constitution, the district has the power and authority to issue bonds, notes, and other obligations or otherwise lend its credit and levy and collect taxes to pay the interest thereon and provide a sinking fund for the redemption thereof for the construction, purchase, maintenance and operation of roads and road facilities. The total amount of bonds issued for such purpose may not exceed one-fourth of the assessed market value of real property of the district as determined by the chief appraiser of the appraisal district that appraises property for the district. (c) The roads and road facilities may include drainage, landscaping and pedestrian improvements and lights, signs, or signals that are incidental thereto and their construction, maintenance, or operation. (d) The roads and road facilities authorized by this section must meet all applicable construction standards, zoning and subdivision requirements, and regulatory ordinances of the municipality or county in whose jurisdiction the road or road facility is located. (e) On completion of a road or road facility authorized by this section, the district, with the consent of a municipality or county, may convey that road or road facility to the municipality or county, provided the conveyance is free of all indebtedness of the district. If a municipality or county becomes the owner of a road or road facility, the municipality or county is responsible for all future maintenance and upkeep, and the district has no further responsibility for the road or road facility or its maintenance or upkeep, unless otherwise agreed to by the district and the municipality or county. (f) The district may contract with a state agency, political subdivision, or corporation created under Chapter 431, Transportation Code, for a joint road or road facility. The district may issue bonds to pay all or part of the costs of the road or road facility and any other payments required pursuant to the contract. The contract may: (1) provide for joint payment of the costs of the road or road facility; and (2) require the state agency, political subdivision, or corporation to design, construct, or improve a road or road facility as provided by the contract. (g) The district may agree to: (1) reimburse a private person for money spent to construct a road or road facility that has been or will be dedicated or otherwise transferred to public use; or (2) purchase a road or road facility constructed by a private person. (h) The amount paid for the reimbursement or purchase of a road or road facility: (1) may include all construction costs, including engineering, legal, financing, and other expenses incident to the construction; or (2) may be at a price not to exceed the replacement cost of the road or road facilities as determined by the board; and (3) may be paid with proceeds from the sale of the district's bonds or from any other money available to the district. (i) The district may enter into an agreement to use the proceeds of a subsequent bond sale for reimbursing all construction costs, engineering and other expenses, and financing costs incident to construction or acquisition of a road or an interest in a road to a private person who constructs or acquires a road or road facility that benefits the district pursuant to the agreement. The agreement may provide the terms and conditions under which the road or road facility will be dedicated or transferred for the benefit of the public and to pay or reimburse the cost of constructing or acquiring the road. SECTION 7. SPECIFIC NAVIGATION POWERS OF DISTRICT. The district may purchase, construct, acquire, own, operate, maintain, improve or extend inside and outside its boundaries canals, waterways, bulkheads, docks, and any other improvements or facilities necessary or convenient to accomplish the navigation purposes of the district authorized by Section 59, Article XVI, of the Texas Constitution. SECTION 8. AUTHORITY OF COMMISSION OVER ISSUANCE OF DISTRICT BONDS. (a) Sections 49.181 and 49.182, Water Code, apply to all water, wastewater, drainage, and recreational facility projects of the district and bonds issued therefor. (b) Section 49.181, Water Code, applies to all road and road facility projects and navigation projects and bonds issued therefore; however, the commission's review of such projects shall be limited to the financial feasibility of such projects and bonds and shall not include the review or approval of the design and construction of such projects or the engineering feasibility of such projects, and the requirements of written applications for investigation of feasibility shall be adjusted accordingly. (c) Section 49.182, Water Code, does not apply to road and road facility projects and navigation projects and bonds issued therefor. (d) Projects and bonds of the district are not subject to the review and approval of the Texas Transportation Commission or the rules promulgated by the Texas Transportation Commission. SECTION 9. ELECTIONS REGARDING TAXES OR BONDS FOR ROADS. The district may issue bonds, notes, and other obligations to finance roads and road facilities under Section 52(b)(3), Article III, of the Texas Constitution, secured in whole or in part by ad valorem taxation and impose ad valorem taxes to pay the principal of and interest on those obligations and provide a sinking fund for the redemption thereof only if the issuance is approved by a two-thirds majority of the voters of the district voting at an election called and held for that purpose. SECTION 10. EMINENT DOMAIN. The district shall obtain the written consent of the city of Texas City, Texas, prior to exercising its power of eminent domain. SECTION 11. ADDITIONAL LEGISLATIVE FINDINGS. The legislature finds that: (1) proper and 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 by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the commission; (2) the commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time; (3) the general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, road, and navigation powers and the inclusion of land in those districts has been complied with; and (4) 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 have been fulfilled and accomplished.. SECTION 12. EFFECTIVE DATE. 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, 2005.