By: Deuell S.B. No. 514
(In the Senate - Filed February 15, 2005; February 28, 2005,
read first time and referred to Committee on Intergovernmental
Relations; April 12, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 4, Nays 0;
April 12, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 514 By: Deuell
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
through 54.033, Water Code.
SECTION 2. 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, 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) 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.
[Sections 8110.004-8110.050 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 or roads, or improvements in
aid of those streets or roads, 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 and their
construction, maintenance, or operation.
(c) The district may, following approval of a construction
contract by the board, reimburse expenditures without obtaining
approval from the county.
(d) For purposes of this chapter, a project under Section
49.222, Water Code, includes a road project.
Sec. 8110.052. ROAD CONTRACTS. The district may contract
for a road project in the same manner as a road district, except
that competitive bidding for a contract is governed by Subchapter
I, Chapter 49, Water Code.
Sec. 8110.053. 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. 8110.054. 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.
[Sections 8110.055-8110.100 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.
Sec. 8110.103. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. The district may not impose an impact fee or
assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code;
(4) a cable operator, as defined by 47 U.S.C. Section
522; or
(5) a person who provides to the public advanced
telecommunications services.
[Sections 8110.104-8110.150 reserved for expansion]
SUBCHAPTER D. BONDS
Sec. 8110.151. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. (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.
(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 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 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 to
bonds issued by the district to finance the project.
SECTION 3. (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 4. (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 5. 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.
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