81R22955 GCB-F

By: Coleman H.B. No. 4648

Substitute the following for H.B. No. 4648:

By: Turner of Tarrant C.S.H.B. No. 4648

A BILL TO BE ENTITLED

AN ACT

relating to authorizing municipalities located in certain counties to create residential management districts.

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

SECTION 1. Chapter 375, Local Government Code, is amended by adding Subchapter R to read as follows:

SUBCHAPTER R. RESIDENTIAL MANAGEMENT DISTRICTS

Sec. 375.451. APPLICABILITY. This subchapter applies only to a municipality with a population of more than 1,900,000 that is located in a county with a population of more than two million.

Sec. 375.452. DEFINITIONS. In this subchapter:

(1) "Associated low-density multifamily residential housing" means residential housing in a building of three or fewer stories, including a townhome, patio home, triplex, or quadruplex, that is located in a residential neighborhood.

(2) "Deed-restricted residential subdivision" means a subdivision, including all of the subdivision's sections, annexes, extensions, and associated residentially deed-restricted parcels or tracts, that is:

(A) governed by deed restrictions; and

(B) consists of lots for:

(i) single-family dwellings; and

(ii) associated low-density multifamily residential housing.

(3) "District" means a residential management district created by a municipality under this subchapter.

(4) "Predominately single-family residential subdivision or generally recognized residential area" means an area that, regardless of whether the area is governed by deed restrictions, consists mostly of tracts for single-family dwellings and associated low-density multifamily residential housing.

(5) "Residential neighborhood" means a contiguous area composed of:

(A) a deed-restricted residential subdivision;

(B) a predominately single-family residential subdivision or generally recognized residential area; or

(C) any combination of two or more deed-restricted residential subdivisions or predominately single-family residential subdivisions or generally recognized residential areas.

(6) "Single-family dwelling" means:

(A) a single building that is:

(i) located on a single lot; and

(ii) designed for and contains not more than two separate dwelling units with facilities for living, sleeping, cooking, and eating;

(B) two buildings, one of which is not more than 900 square feet in size, that are located on a single lot and each contain not more than one dwelling unit; or

(C) a building that contains not more than one dwelling unit and that stands on one lot and is connected by a party wall to another building that stands on an adjacent lot and that contains not more than one dwelling unit.

Sec. 375.453. PETITION. (a) The governing body of a municipality may create a district only if the governing body receives a petition requesting creation of the district that describes a proposed area at least 90 percent of which is a residential neighborhood.

(b) The petition must be signed by:

(1) the owners of a majority of the assessed value of the real property in the proposed district, according to the most recent certified county property tax rolls; or

(2) 50 persons who own real property in the proposed district if, according to the most recent certified county property tax rolls, more than 50 persons own real property in the proposed district.

(c) The petition must:

(1) describe the boundaries of the proposed district by metes and bounds or, if there is a recorded map or plat and survey of the area, by lot and block number;

(2) include a name of the district, which must be generally descriptive of the location of the district, followed by "Residential Management District";

(3) propose the number of directors the district will have, which must be at least five and not more than nine;

(4) include a proposed list of initial directors that includes the directors' experience and initial terms of service; and

(5) include a statement of the zoning powers granted to a municipality under Chapter 211 that it is proposed the district will exercise, subject to an election approving the exercise of those powers.

Sec. 375.454. NOTICE OF HEARING. The governing body of a municipality shall set a date, time, and place for a hearing to consider each petition received. The governing body shall issue a notice of the date, time, and place of hearing. The notice must state that each person has a right to appear and present evidence and testify for or against the allegations in the petition, the form of the petition, and the necessity and feasibility of the district.

Sec. 375.455. HEARING. (a) At a hearing set under Section 375.454, the governing body of a municipality shall examine the petition to determine its sufficiency. Any interested person may appear before the governing body in person or by attorney and offer testimony on the sufficiency of the petition and whether the district is feasible and necessary and would be a benefit to all or any part of the land proposed to be included in the district.

(b) The governing body of the municipality has jurisdiction to determine each issue relating to the sufficiency of the petition and to the creation of the district and may issue necessary incidental resolutions in relation to the issues before the governing body. The governing body may adjourn the hearing from day to day.

(c) If after the hearing the governing body of the municipality finds that the petition conforms to the requirements of Section 375.453 and that the district is feasible and necessary and would benefit the public, the governing body by order shall make that finding and grant the petition. In determining if the project is feasible and necessary and would benefit the public, the governing body shall consider:

(1) the availability of comparable services from other systems, including special districts, municipalities, and regional authorities; and

(2) the reasonableness of the proposed public purpose projects and services.

Sec. 375.456. INITIAL DIRECTORS. If the governing body of the municipality grants the petition and creates the district, the governing body shall appoint the number of initial directors requested in the petition.

Sec. 375.457. QUALIFICATIONS OF DIRECTOR. To be qualified to serve as a director, a person must be at least 18 years of age and a resident of the district.

Sec. 375.458. CONFIRMATION ELECTION AND ELECTION OF DIRECTORS AND ZONING POWERS. The initial directors shall hold an election on the first available uniform election date that occurs after the time required by Section 3.005, Election Code:

(1) on the question of the creation of the district;

(2) on the question of whether to authorize the district to exercise municipal zoning powers under Chapter 211; and

(3) to elect successor directors.

Sec. 375.459. ELECTION BALLOT. In addition to allowing for the election of directors by name, the ballot shall be printed to provide for voting for or against the following propositions:

(1) "Creating the ____ Residential Management District"; and

(2) "Authorizing the ____ Residential Management District to exercise municipal zoning powers."

Sec. 375.460. POWERS AND DUTIES. A district has the powers and duties that:

(1) this chapter provides to a management district created under this chapter; and

(2) Chapter 211 provides to a municipality, if a majority of district voters voting in an election held under Section 375.458 approve of the district exercising municipal zoning powers.

Sec. 375.461. NO EMINENT DOMAIN POWER. A district may not exercise the power of eminent domain.

Sec. 375.462. DISSOLUTION. (a) The governing body of the municipality that creates a district shall call an election on the question of dissolving the district if the governing body receives a petition to dissolve the district that contains the signatures of more than 60 percent of the residents of the district.

(b) If 75 percent of the district voters voting at the election vote in the election to dissolve the district, the district is dissolved.

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, 2009.