By: Carona S.B. No. 1660
(In the Senate - Filed March 11, 2005; March 30, 2005, read
first time and referred to Committee on Intergovernmental
Relations; April 25, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
April 25, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1660 By: Gallegos
A BILL TO BE ENTITLED
AN ACT
relating to the assumption of road district powers and duties by
certain municipal utility districts; authorizing bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 54, Water Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. ROAD DISTRICT POWERS AND DUTIES
Sec. 54.771. APPLICABILITY. This subchapter does not apply
to a district located in a county that:
(1) has a population of 3.3 million or more; or
(2) is adjacent to a county that has a population of
3.3 million or more.
Sec. 54.772. AUTHORITY; ELECTION TO ASSUME ROAD DISTRICT
POWERS. (a) A board may order an election to be held in a district
to determine whether the district assumes the powers and duties of a
road district under Section 52(b)(3), Article III, Texas
Constitution.
(b) The ballot for the election must be printed to provide
for voting for or against the assumption by the district of the
powers and duties of a road district under Section 52(b)(3),
Article III, Texas Constitution.
(c) If a majority of the persons voting in the election vote
in favor of the proposition, the district assumes the powers and
duties of a road district operating under:
(1) Section 52(b)(3), Article III, Texas
Constitution; and
(2) other general law of this state applicable to road
districts.
Sec. 54.773. BONDS; ELECTION. (a) A district that has
assumed road district powers under this subchapter may not issue
bonds or otherwise lend its credit for road district purposes
except on approval of two-thirds or more of the voters of the
district voting at an election held for that purpose.
(b) The total amount of bonds and other obligations of the
district issued or incurred under this section may not exceed
one-fourth of the assessed valuation of real property in the
district.
(c) The attorney general may approve the bonds under Section
49.184 only if the bonds meet the requirements of Section 54.774.
Sec. 54.774. LIMITATION ON ISSUANCE OF BONDS. (a) A
district that has assumed road district powers under this
subchapter may issue bonds for road district purposes only if the
combined projected tax rate for the district does not exceed $1.50
per $100 of taxable value and the combined no-growth tax rate for
the district does not exceed $2.50 per $100 of taxable value.
(b) In this section:
(1) "Combined projected tax rate" means the sum of:
(A) the 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 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 district or an overlapping political subdivision; and
(F) any contract tax rate, less any equivalent
tax rebate or other payment.
(2) "Combined no-growth tax rate" means the sum of:
(A) the 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 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 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. REIMBURSEMENT OF CONSTRUCTION CONTRACT
EXPENSES. A district that has assumed road district powers under
this subchapter may, following approval of a construction contract
by the board, reimburse expenditures without obtaining any
additional approval.
Sec. 54.776. MAINTENANCE OF ROADS. A district that has
assumed road district powers under this subchapter shall maintain
all roads constructed or purchased by the district unless the
county or another political subdivision assumes responsibility for
maintaining the roads.
Sec. 54.777. APPLICABILITY OF OTHER LAW. Sections 49.181
and 49.182 do not apply to a road project undertaken by the district
or to bonds issued by the district to finance the project.
SECTION 2. 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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