82R3575 KYF-F

By: Phillips H.B. No. 534

A BILL TO BE ENTITLED

AN ACT

relating to the powers and duties of the Gunter Municipal Utility

Districts Nos. 1 and 2.

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

SECTION 1. Subchapter C, Chapter 8238, Special District

Local Laws Code, is amended by adding Section 8238.104 to read as

follows:

Sec. 8238.104. NO ALLOCATION AGREEMENT. Section 54.016(f),

Water Code, does not apply to the district.

SECTION 2. Chapter 8238, Special District Local Laws Code,

is amended by adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 8238.131. DIVISION OF DISTRICT; PREREQUISITES. The

district may be divided into two or more new districts only if the

district:

(1) has no outstanding bonded debt; and

(2) is not imposing ad valorem taxes.

Sec. 8238.132. LAW APPLICABLE TO NEW DISTRICT. This

chapter applies to any new district created by division of the

district, and a new district has all the powers and duties of the

district.

Sec. 8238.133. LIMITATION ON AREA OF NEW DISTRICT. A 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, Chapter 966, Acts of the 80th Legislature,

Regular Session, 2007.

Sec. 8238.134. DIVISION PROCEDURES. (a) The board, on its

own motion or on receipt of a petition signed by the owner or owners

of a majority of the assessed value of the real property in the

district, may adopt an order dividing the district.

(b) The board may adopt an order dividing the district

before or after the date the board holds an election under Section

8238.003 to confirm the district's creation.

(c) An order dividing the district must:

(1) name each new district;

(2) include the metes and bounds description of the

territory of each new district;

(3) appoint temporary directors for each new district;

and

(4) provide for the division of assets and liabilities

between the new districts.

(d) On or before the 30th day after the date of adoption of

an order dividing the district, the district shall file the order

with the Texas Commission on Environmental Quality and record the

order in the real property records of each county in which the

district is located.

Sec. 8238.135. CONFIRMATION ELECTION FOR NEW DISTRICT. (a)

A new district created by the division of the district shall hold a

confirmation and directors' election as required by Section

8238.003.

(b) If the creation of the new district is confirmed, the

new district shall provide the election date and results to the

Texas Commission on Environmental Quality.

Sec. 8238.136. MUNICIPAL CONSENT. Municipal consent to the

creation of the district and to the inclusion of land in the

district granted under Section 8238.054 acts as municipal consent

to the creation of any new district created by the division of the

district and to the inclusion of land in the new district.

Sec. 8238.137. TAX OR BOND ELECTION. Before a new district

created by the division of the district may impose a maintenance tax

or issue bonds payable wholly or partly from ad valorem taxes, the

new district must hold an election as required by this chapter to

obtain voter approval.

SECTION 3. Subchapter C, Chapter 8239, Special District

Local Laws Code, is amended by adding Section 8239.104 to read as

follows:

Sec. 8239.104. NO ALLOCATION AGREEMENT. Section 54.016(f),

Water Code, does not apply to the district.

SECTION 4. Chapter 8239, Special District Local Laws Code,

is amended by adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 8239.131. DIVISION OF DISTRICT; PREREQUISITES. The

district may be divided into two or more new districts only if the

district:

(1) has no outstanding bonded debt; and

(2) is not imposing ad valorem taxes.

Sec. 8239.132. LAW APPLICABLE TO NEW DISTRICT. This

chapter applies to any new district created by division of the

district, and a new district has all the powers and duties of the

district.

Sec. 8239.133. LIMITATION ON AREA OF NEW DISTRICT. A 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, Chapter 1138, Acts of the 80th Legislature,

Regular Session, 2007.

Sec. 8239.134. DIVISION PROCEDURES. (a) The board, on its

own motion or on receipt of a petition signed by the owner or owners

of a majority of the assessed value of the real property in the

district, may adopt an order dividing the district.

(b) The board may adopt an order dividing the district

before or after the date the board holds an election under Section

8239.003 to confirm the district's creation.

(c) An order dividing the district must:

(1) name each new district;

(2) include the metes and bounds description of the

territory of each new district;

(3) appoint temporary directors for each new district;

and

(4) provide for the division of assets and liabilities

between the new districts.

(d) On or before the 30th day after the date of adoption of

an order dividing the district, the district shall file the order

with the Texas Commission on Environmental Quality and record the

order in the real property records of each county in which the

district is located.

Sec. 8239.135. CONFIRMATION ELECTION FOR NEW DISTRICT. (a)

A new district created by the division of the district shall hold a

confirmation and directors' election as required by Section

8239.003.

(b) If the creation of the new district is confirmed, the

new district shall provide the election date and results to the

Texas Commission on Environmental Quality.

Sec. 8239.136. MUNICIPAL CONSENT. Municipal consent to the

creation of the district and to the inclusion of land in the

district granted under Section 8239.054 acts as municipal consent

to the creation of any new district created by the division of the

district and to the inclusion of land in the new district.

Sec. 8239.137. TAX OR BOND ELECTION. Before a new district

created by the division of the district may impose a maintenance tax

or issue bonds payable wholly or partly from ad valorem taxes, the

new district must hold an election as required by this chapter to

obtain voter approval.

SECTION 5. (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 6. This Act takes effect September 1, 2011.