81R21419 SLB-F

By: Parker H.B. No. 1090

Substitute the following for H.B. No. 1090:

By: Corte C.S.H.B. No. 1090

A BILL TO BE ENTITLED

AN ACT

relating to the powers and duties of the Oak Point Water Control and Improvement District No. 4 of Denton County; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle I, Title 6, Special District Local Laws Code, is amended by adding Chapter 9032 to read as follows:

CHAPTER 9032. OAK POINT WATER CONTROL AND IMPROVEMENT

DISTRICT NO. 4 OF DENTON COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 9032.001. DEFINITION. In this chapter, "district" means the Oak Point Water Control and Improvement District No. 4 of Denton County.

[Sections 9032.002-9032.050 reserved for expansion]

SUBCHAPTER B. POWERS AND DUTIES

Sec. 9032.051. WATER CONTROL AND IMPROVEMENT DISTRICT POWERS AND DUTIES. The district has the powers and duties provided by the general law of this state, including Chapters 49 and 51, Water Code, applicable to water control and improvement districts created under Section 59, Article XVI, Texas Constitution.

Sec. 9032.052. AUTHORITY FOR ROAD PROJECTS. (a) Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

(b) The district may exercise its authority under this section only on or after the date the governing body of the municipality in whose extraterritorial jurisdiction any part of the district is located by resolution consents to the district exercising that authority. If the governing body of the municipality does not adopt a resolution under this section consenting to the district's road project authority before January 1, 2010, this section and Sections 9032.053 and 9032.054 expire on that date.

Sec. 9032.053. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located.

(b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located.

(c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project.

Sec. 9032.054. ECONOMIC FEASIBILITY STUDY. (a) Not later than the 30th day before the date the district issues for a road purpose bonds payable from ad valorem taxes of the district, the district shall deliver to the municipality whose extraterritorial jurisdiction includes district territory a report of the conclusions of an independent economic feasibility study that support the ability of the district to pay debt service on the bonds under consideration at a tax rate of 95 cents or less per $100 assessed valuation on all property subject to taxation by the district, assuming a 95 percent collection rate.

(b) The economic feasibility study must establish:

(1) the ability of the district to issue the bonds based on:

(A) land values in the district;

(B) the tax rate necessary to support the district's payment of debt service on the district's ad valorem tax bonds; and

(C) other factors enabling the district to support a reasonable tax rate for debt service; and

(2) the value of projected improvements to be financed by the bonds.

(c) The district may not issue the bonds unless the governing body of the district approves the conclusions of the economic feasibility study. Not later than the 30th day after the date the municipality receives the study report, the governing body of the municipality shall either approve or disapprove the conclusions. If the governing body of the municipality does not approve or disapprove the conclusions by that 30th day, the conclusions are considered approved.

(d) If the Texas Commission on Environmental Quality assumes jurisdiction over the district's issuance of bonds for a road purpose, this section expires on the day after the date the commission assumes the jurisdiction.

Sec. 9032.055. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district to acquire a site or easement for:

(1) a road project authorized by Section 9032.052; or

(2) a recreational facility as defined by Section 49.462, Water Code.

[Sections 9032.056-9032.100 reserved for expansion]

SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS

Sec. 9032.101. TAX TO REPAY BONDS. The district may impose a tax to pay the principal of or interest on bonds issued under Section 9032.151.

[Sections 9032.102-9032.150 reserved for expansion]

SUBCHAPTER D. BONDS AND OTHER OBLIGATIONS

Sec. 9032.151. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose.

Sec. 9032.152. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the district shall provide for the annual imposition of a continuing direct ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding.

Sec. 9032.153. BONDS FOR ROAD PROJECTS. (a) The district may not issue bonds payable from ad valorem taxes to finance a road project 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.

(b) At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district.

SECTION 2. (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 3. 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, 2009.