BILL ANALYSIS
By: Smith, Wayne
BACKGROUND AND PURPOSE
Harris County Municipal Utility District No. 510 (the “district”) will encompass an area of land inside the extraterritorial jurisdiction of the City of Baytown, Texas. The land to be located within the district will be developed into single family residential and commercial development; therefore, water, sewer, drainage and road services need to be secured. It is necessary to create the district under Chapters 49 (Provisions Applicable to All Districts) and 54 (Municipal Utility Districts), Water Code, in order to purchase, acquire, or construct facilities for such services to serve the future occupants of the land utilizing tax exempt bonds. It is also necessary to empower the district with authority to impose a tax and issue bonds; granting the power of eminent domain. HB 4017 provides regulations regarding the creation, administration, powers, duties, operation, and financing of the District.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapter 8240 to read as follows: CHAPTER 8240. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 510 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8240.001. DEFINITIONS. Defines "Board," "Director" and "District." Sec. 8240.002. NATURE OF DISTRICT. Provides that the district is a municipal utility district in Harris County created under and essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution. Sec. 8240.003. CONFIRMATION ELECTION REQUIRED. Provides that if the creation of a district is not confirmed at a confirmation election held under Section 8240.023 before September 1, 2011, the district is dissolved September 1, 2011, except that: (A) any debts incurred shall be paid; (B) any assets that remain after the payment of debts shall be transferred to Harris County; and (C) the organization of the district shall be maintained until all debts are paid and remaining assets are transferred. Provides that this chapter expires September 1, 2014. Sec. 8240.004. INITIAL DISTRICT TERRITORY. Provides that each district is initially composed of the territory described by SECTION 2 of the Act creating this chapter. Provides that the boundaries and field notes of each district, as described by SECTION 2 of the Act creating this chapter, form a closure. Provides that a mistake made in the field notes or in copying the field notes in the legislative process does not affect (1) the organization, existence, or validity of the district; (2) the right of the district to impose taxes; (3) the validity of the district's bonds, notes, or indebtedness; or (4) the legality or operation of the district or the board. [Sections 8240.005-8240.020 reserved for expansion] SUBCHAPTER A-1. TEMPORARY PROVISIONS Sec. 8240.021. TEMPORARY DIRECTORS. Provides that on or after September 1, 2007, a person who owns land in the district may submit a petition to the Texas Commission on Environmental Quality requesting that the commission appoint as temporary directors the five persons named in the petition. Provides that the commission shall appoint as temporary directors the five persons named in the first petition received by the commission under this Section. Provides that if a temporary director fails to qualify for office, the commission shall appoint a person to fill the vacancy. Provides that temporary directors serve until the earlier of the date directors are elected under Section 8240.023 or the date this chapter expires under Section 8240.003. Sec. 8240.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. Provides that as soon as practicable after all the temporary directors have qualified under Section 49.055, Water Code, the temporary directors shall meet at a location in the district agreeable to a majority of the directors. At the meeting, the temporary directors shall elect officers from among the temporary directors and conduct any other district business. Sec. 8240.023. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. Provides that the temporary directors shall hold an election to confirm the creation of the district and to elect five directors as provided by Section 49.102, Water Code. Sec. 8240.024. INITIAL ELECTED DIRECTORS; TERMS. Provides that the directors elected under Section 8240.023 shall draw lots to determine which two shall serve until the first regularly scheduled election of directors and which three shall serve until the second regularly scheduled election of directors. Sec. 8240.025. EXPIRATION OF SUBCHAPTER. Provides that this subchapter expires September 1, 2014. [Sections 8240.026-8240.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8240.051. GOVERNING BODY; TERMS. Provides that the district is governed by a board of five directors. Provides that the Directors serve staggered four-year terms. [Sections 8240.052-8240.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8240.101. MUNICIPAL UTILITY DISTRICT POWERS AND UTILITES. Provides that the district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. Sec. 8240.102. ROAD PROJECTS. Provides that to the extent authorized by Section 52, Article III, Texas Constitution, the district may construct, acquire, improve, maintain, or operate macadamized, graveled, or paved roads or turnpikes, or improvements in aid of those roads or turnpikes, inside the district. Provides that a road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits the district is located. Sec. 8240.103. DIVISION OF DISTRICT. Provides that the district may be divided into two new districts only if the district has no outstanding bonded debt and is not imposing ad valorem taxes. Provides that the division procedure is prescribed by Sections 53.030 through 53.041, Water Code. Provides that any new district created by the division of the district has all the powers and duties of the district. Provides that any new district created by the division of the district may not, at the time the new district is created, contain any land outside the area described by SECTION 2 of the Act creating this chapter. Sec. 8240.104. COMPLIANCE WITH MUNICIPAL CONSENT RESOLUTIONS. Provides that the district shall comply with all applicable requirements of any ordinance or resolution adopted by the city council of the City of Baytown. [Sections 8240.105-8240.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8240.151. TAX TO REPAY BONDS. Provides that the district may impose a tax to pay the principal of or interest on bonds or other obligations issued under Section 8240.201. [Sections 8240.152-8240.200 reserved for expansion] SUBCHAPTER E. BONDS Sec. 8240.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. Provides that 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 a project under Section 8240.101 or 8240.102. Provides that the district may not issue bonds or other obligations to finance projects authorized by Section 8240.102 unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose. Provides that bonds or other obligations issued or incurred to finance projects authorized by Section 8240.102 may not exceed one-fourth of the assessed value of the real property in the district.
SECTION 2. BOUNDARIES. Sets forth the boundaries of the District.
SECTION 3. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Provides that proper and legal notice setting forth the general substance of this Act has been published as provided by law. Provides that 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. Provides that the Governor has submitted the notice and Act to the Texas Commission on Environmental Quality. Provides that the Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the Governor, Lieutenant Governor, and Speaker of the House of Representatives within the required time. Provides that 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 4. EFFECTIVE DATE. Provides that this Act takes effect on the date on or after September 1, 2007, on which all of the territory described by SECTION 2 of this Act is annexed into the City of Baytown. If the annexation occurs before September 1, 2007, this Act takes effect September 1, 2007. Provides that the effective date is September 1, 2007.
EFFECTIVE DATE
Provides that this Act takes effect on the date on or after September 1, 2007, on which all of the territory described by SECTION 2 of this Act is annexed into the City of Baytown. If the annexation occurs before September 1, 2007, this Act takes effect September 1, 2007. Provides that the effective date is September 1, 2007.