79R4847 QS-F

By:  Deuell                                                       S.B. No. 514


A BILL TO BE ENTITLED
AN ACT
relating to the conversion of the Verandah Fresh Water Supply District of Hunt County to a municipal utility district; providing authority to impose a tax and issue bonds; granting the power of eminent domain. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The Verandah Fresh Water Supply District of Hunt County is converted to the Verandah Municipal Utility District of Hunt County. Section 54.034, Water Code, applies to the district in the same manner as a district converted under Sections 54.030-54.033, Water Code. SECTION 2. The legislature finds that development or redevelopment in the area in the district would not occur solely through private investment in the reasonably foreseeable future and that the area in the district: (1) is unproductive, underdeveloped, or blighted; (2) substantially arrests and impairs the sound growth of Hunt County because of: (A) obsolete platting; (B) deterioration of structures or site improvements; or (C) other factors; (3) retards the provision of housing accommodations; (4) is an economic and social liability; (5) is a menace to the public health, safety, morals, and welfare in its present condition and use; and (6) is predominantly open. SECTION 3. Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapter 8110 to read as follows:
CHAPTER 8110. VERANDAH MUNICIPAL UTILITY DISTRICT OF HUNT COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8110.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "Director" means a member of the board. (3) "District" means the Verandah Municipal Utility District of Hunt County. Sec. 8110.002. NATURE OF DISTRICT. (a) The district is a municipal utility district with road district powers. (b) The district is essential to accomplish the purposes of Section 52, Article III, Section 1-g, Article VIII, and Section 59, Article XVI, Texas Constitution, and will serve a public use and benefit. Sec. 8110.003. APPLICABILITY OF OTHER LAW. (a) Except as otherwise provided by this chapter, all applicable laws, including the following laws, apply to the district: (1) Chapters 49 and 54, Water Code; and (2) Chapter 257, Transportation Code, and other general laws applicable to road districts created under Section 52, Article III, Texas Constitution, to the extent those provisions can apply to the district. (b) If a provision of general law relating to road districts is in conflict or inconsistent with this chapter or Chapter 49 or 54, Water Code, this chapter and Chapters 49 and 54, Water Code, prevail. Sec. 8110.004. PROHIBITION AGAINST IMPAIRMENT OF DISTRICT. A county in which the district is located or a municipality in whose extraterritorial jurisdiction the district is located may not adopt an ordinance or resolution or take any other action that: (1) impairs the ability of the district to exercise its powers under this chapter or other law; or (2) limits the ability of the district to finance, construct, or operate its water, wastewater, drainage, or road systems.
[Sections 8110.005-8110.050 reserved for expansion]
SUBCHAPTER B. POWERS AND DUTIES
Sec. 8110.051. ROAD PROJECTS. (a) The district may construct, acquire, improve, maintain, or operate macadamized, graveled, paved, or concreted streets, roads, or turnpikes, or improvements in aid of those streets, roads, or turnpikes, including bridges, inside or outside the district. (b) The improvements may include drainage or landscaping improvements, lights, signs, signals, sidewalks, or hiking or biking trails that are incidental to the roads or turnpikes and their construction, maintenance, or operation. (c) The district may, following approval of a construction contract by the board, reimburse expenditures as provided by Sections 257.003(a) and (b), Transportation Code, without any additional approval under Section 257.003, Transportation Code. Sec. 8110.052. JOINT ROAD PROJECTS. A district contract for a joint project with a state agency, a political subdivision, or a corporation created under Chapter 431, Transportation Code, may: (1) provide for joint payment of project costs; or (2) require the state agency or political subdivision to design, construct, or improve a project, including landscaping for the project, as provided by the contract. Sec. 8110.053. ROAD CONTRACTS. The district may contract for a road project in the same manner as a road district under Chapter 257, Transportation Code, except that competitive bidding for a contract is governed by Subchapter I, Chapter 49, Water Code. Sec. 8110.054. CERTIFICATE OF CONVENIENCE AND NECESSITY. (a) The district may pay out of bond proceeds or other available district money all expenses, including legal, engineering, and other fees, related to obtaining a new certificate of convenience and necessity under Chapter 13, Water Code, authorizing the district to provide retail water or sewer service inside or outside the district. (b) The district may pay out of bond proceeds or other available district money all expenses, including the purchase price, related to acquiring certificate of convenience and necessity rights from another retail public utility to allow the district to provide retail water or sewer service in the district. Sec. 8110.055. CONTRACT WITH POLITICAL SUBDIVISION FOR WATER OR SEWER SERVICES. (a) The district may enter into a contract to allow a political subdivision to provide retail water or sewer service in the district. The contract may contain terms the board considers desirable, fair, and advantageous to the district. (b) The contract may provide that the district will construct or acquire and convey to the political subdivision a water supply or treatment system, a water distribution system, or a sanitary sewage collection or treatment system, as necessary to provide water or sewer service in the district. (c) The district may use bond proceeds or other available district money to pay for its obligations and for services and facilities provided under the contract. (d) If the contract requires the district to make payments from taxes other than operation and maintenance taxes, the contract is subject to Section 49.108, Water Code. Sec. 8110.056. EMINENT DOMAIN. The district may acquire by condemnation any land, easements, or other property, inside or outside the district boundaries, for any district project or purpose. Sec. 8110.057. TAX INCREMENT FINANCING POWERS. (a) Without further authorization or procedural requirement, the district is a tax increment reinvestment zone under Chapter 311, Tax Code. (b) The district has all powers provided under Chapter 311, Tax Code. (c) The district may enter into an interlocal agreement with any overlapping taxing unit for the payment of all or a portion of the tax increment of the unit to the district. The overlapping taxing unit may enter into the agreement. The agreement may provide that the overlapping taxing unit will pay a different portion or none of its tax increment relating to property used for commercial purposes. (d) The base year value of the district, for tax increment financing purposes, is the value as of January 1, 2004, of all taxable real property in the district as shown on the certified tax rolls of the central appraisal district.
[Sections 8110.058-8110.100 reserved for expansion]
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
Sec. 8110.101. OPERATION AND MAINTENANCE TAX. (a) The district may impose a tax for any district operation and maintenance purpose in the manner provided by Section 49.107, Water Code. (b) Section 49.107(f), Water Code, does not apply to reimbursements for projects constructed or acquired under Section 8110.051. Sec. 8110.102. TAX TO REPAY BONDS. The district may impose a tax to pay the principal of and interest on bonds issued under Section 8110.151.
[Sections 8110.103-8110.150 reserved for expansion]
SUBCHAPTER D. BONDS
Sec. 8110.151. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS; TAX. (a) In addition to the general authority to issue bonds under Chapters 49 and 54, Water Code, the district may issue bonds or other obligations as provided by Chapters 49 and 54, Water Code, to finance the construction, maintenance, or operation of projects under Section 8110.051 or 8110.052. (b) The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, grants, or other district money or any combination of those sources. (c) The district may not issue bonds or other obligations secured wholly or partly by ad valorem taxation to finance projects authorized by Section 8110.051 or 8110.052 unless the issuance is approved by a vote of a two-thirds majority of the voters of the district voting at an election called for that purpose. (d) Bonds or other obligations issued or incurred to finance projects authorized by Section 8110.051 or 8110.052 may not exceed one-fourth of the assessed value of the real property in the district. (e) Sections 49.181 and 49.182, Water Code, do not apply to a project undertaken by the district under Section 8110.051 or 8110.052 or to bonds issued by the district to finance the project.
[Sections 8110.152-8110.200 reserved for expansion]
SECTION 4. (a) The following are validated and confirmed in all respects: (1) the creation of the Verandah Fresh Water Supply District of Hunt County and all proceedings related to the creation of the district, effective as of the date on which the creation or related proceedings occurred; and (2) any act or proceeding of the district, including an election, not excepted by this section and taken not more than three years before the effective date of this Act, effective as of the date on which the act or proceeding occurred. (b) This section does not apply to: (1) an act, proceeding, director, other official, bond, or other obligation the validity of which or of whom is the subject of litigation that is pending on the effective date of this Act; or (2) an act or proceeding that, under a statute of this state or the United States, was a misdemeanor or felony at the time the act or proceeding occurred. 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, 2005.