BILL ANALYSIS

 

 

 

C.S.H.B. 3941

By: Miller, Doug

Special Purpose Districts

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Interested parties note the need for a water control and improvement district in a certain area outside the corporate limits of any city and within the extraterritorial jurisdiction of the City of New Braunfels in Comal County in order to secure water, sewer, drainage, and road services to support the development of single-family residential and commercial properties. C.S.H.B. 3941 seeks to address this need.

 

 

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

 

C.S.H.B. 3941 amends the Special District Local Laws Code to create the Comal County Water Improvement District No. 3, subject to voter approval at a confirmation election, municipal consent, and a certain development agreement. The bill grants the district the power to undertake certain road projects and provides for water and wastewater infrastructure, division of the district, a limitation on annexation of land by the district, municipal annexation of land adjacent to the district, and limits on district services.  The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes.  The bill, if it does not receive a two-thirds vote of all the members elected to each house, prohibits the district from exercising the power of eminent domain.

 

EFFECTIVE DATE

 

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.

 

COMPARISON OF ORIGINAL AND SUBSTITUTE

 

While C.S.H.B. 3941 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.

 

INTRODUCED

HOUSE COMMITTEE SUBSTITUTE

SECTION 1.  Subtitle I, Title 6, Special District Local Laws Code, is amended by adding Chapter 9048 to read as follows:

CHAPTER 9048.  COMAL COUNTY WATER IMPROVEMENT DISTRICT NO. 3

 

SUBCHAPTER A.  GENERAL PROVISIONS

 

Sec. 9048.001.  DEFINITIONS.

 

Sec. 9048.002.  NATURE OF DISTRICT.  The district is a water control and improvement district created under Section 59, Article XVI, Texas Constitution.

 

Sec. 9048.003.  CONFIRMATION AND DIRECTORS' ELECTION REQUIRED. 

 

Sec. 9048.004.  CONSENT OF MUNICIPALITY AND DEVELOPMENT AGREEMENT REQUIRED.  (a)  The temporary directors may not hold an election under Section 9048.003 until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has:

(1)  consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district; and

(2)  entered into a development agreement under Section 212.172, Local Government Code, with the retail public utility owned by the municipality that addresses water and wastewater issues and with the owners of land in the district that addresses relevant issues, including:

(A)  the provision of services other than water or wastewater services to land in the district, including emergency services and solid waste collection;

(B)  traffic and roadway impacts caused by the creation of the district;

(C)  the amount of debt to be issued by the district or any new district created by the division of the district;

(D)  a plan for dividing the district, including the number, location, and size of any new districts created by the division of the district;

(E)  fire flow; and

(F)  a prohibition against a retail public utility, as defined by Section 13.002, Water Code, other than the retail public utility owned by the municipality, from providing retail water or wastewater service to the property in the district or a new district created by the division of the district except with respect to any lands in the district or a new district created by division of the district that are included within the certificated service territory of another retail public utility, as defined by a certificate of public convenience and necessity.

 

 

 

 

 

 

 

 

(b)  The development agreement may not contain a provision prohibited by Section 212.174, Local Government Code, in relation to the provision of utility service.

(c)  A confirmation election held in violation of this section is void.

 

Sec. 9048.005.  FINDINGS OF PUBLIC PURPOSE  AND BENEFIT.  (a)  The district is created to serve a public purpose and benefit.

(b)  The district is created to accomplish the purposes of:

(1)  a water control and improvement district as provided by general law and Section 59, Article XVI, Texas Constitution; and

(2)  Section 52, Article III, Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

 

Sec. 9048.006.  INITIAL DISTRICT TERRITORY. 

 

SUBCHAPTER B.  BOARD OF DIRECTORS

 

Sec. 9048.051.  GOVERNING BODY; TERMS. 

 

Sec. 9048.052.  TEMPORARY DIRECTORS. 

 

SUBCHAPTER C.  POWERS AND DUTIES

 

Sec. 9048.101.  GENERAL POWERS AND DUTIES. 

 

Sec. 9048.102.  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, including powers related to sanitary sewer services and systems.

 

Sec. 9048.103.  AUTHORITY FOR ROAD PROJECTS. 

 

Sec. 9048.104.  ROAD STANDARDS AND REQUIREMENTS. 

 

Sec. 9048.105.  WATER AND WASTEWATER INFRASTRUCTURE. 

 

Sec. 9048.106.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION AND DEVELOPMENT AGREEMENT.  (a)  The district shall comply with all applicable requirements of any ordinance or resolution that is adopted under Section 42.042, Local Government Code, and that consents to the creation of the district or to the inclusion of land in the district.

(b)  Notwithstanding other law, a municipality may place a condition or restriction on the creation of the district or inclusion of land in the district that is:

(1)  expressly permitted by Sections 54.016(e) and (i), Water Code; or

(2)  contained in the development agreement entered into under Section 212.172, Local Government Code, and this chapter.

 

Sec. 9048.107.  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 9048.103; or

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

 

Sec. 9048.108.  DIVISION OF DISTRICT. 

 

 

Sec. 9048.109.  LIMITATION ON ANNEXATION OF LAND BY DISTRICT. 

 

Sec. 9048.110.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT. 

 

 

 

 

 

 

 

 

 

 

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

 

Sec. 9048.151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The district may issue, without an election, bonds and other obligations secured by:

(1)  revenue other than ad valorem taxes;  or

(2)  contract payments described by Section 9048.153.

(b)  The district must hold an election in the manner provided by Chapters 49 and 51, Water Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes.

(c)  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.

 

Sec. 9048.152.  OPERATION AND MAINTENANCE TAX. 

 

Sec. 9048.153.  CONTRACT TAXES. 

 

SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS

 

Sec. 9048.201.  AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. 

 

Sec. 9048.202.  TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board 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 as required and in the manner provided by Section 51.433, Water Code.

 

Sec. 9048.203.  BONDS FOR ROAD PROJECTS. 

SECTION 1.  Subtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapter 8489 to read as follows:

CHAPTER 8489.  COMAL COUNTY WATER IMPROVEMENT DISTRICT NO. 3

 

SUBCHAPTER A.  GENERAL PROVISIONS

 

Sec. 8489.001.  DEFINITIONS. 

 

Sec. 8489.002.  NATURE OF DISTRICT.  The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

 

Sec. 8489.003.  CONFIRMATION AND DIRECTORS' ELECTION REQUIRED. 

 

Sec. 8489.004.  CONSENT OF MUNICIPALITY AND DEVELOPMENT AGREEMENT REQUIRED.  (a)  The temporary directors may not hold an election under Section 8489.003 until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has:

(1)  consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district; and

(2)  entered into a development agreement under Section 212.172, Local Government Code, with the retail public utility owned by the municipality that addresses water and wastewater issues and with the owners of land in the district that addresses relevant issues, including:

(A)  the provision of services other than water or wastewater services to land in the district, including emergency services and solid waste collection;

(B)  traffic and roadway impacts caused by the creation of the district;

(C)  the amount of debt to be issued by the district or any new district created by the division of the district;

(D)  a plan for dividing the district, including the number, location, and size of any new districts created by the division of the district;

(E)  fire flow;

(F)  a prohibition against a retail public utility, as defined by Section 13.002, Water Code, other than the retail public utility owned by the municipality, from providing retail water or wastewater service to the property in the district or a new district created by the division of the district except with respect to any lands in the district or a new district created by division of the district that are included within the certificated service territory of another retail public utility, as defined by a certificate of public convenience and necessity;

(G)  an agreement to comply with the municipality's most current building codes and ordinances, public health and safety codes and ordinances, and environmental regulation codes and ordinances; and

(H)  an agreement to comply with the municipality's most current land use regulations.

(b)  The development agreement may not contain a provision prohibited by Section 212.174, Local Government Code, in relation to the provision of utility service.

(c)  A confirmation election held in violation of this section is void.

 

Sec. 8489.005.  FINDINGS OF PUBLIC PURPOSE  AND BENEFIT.  (a)  The district is created to serve a public purpose and benefit.

(b)  The district is created to accomplish the purposes of:

(1)  a municipal utility district as provided by general law and Section 59, Article XVI, Texas Constitution; and

 

(2)  Section 52, Article III, Texas Constitution, that relate to the construction, acquisition, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

 

Sec. 8489.006.  INITIAL DISTRICT TERRITORY. 

 

SUBCHAPTER B.  BOARD OF DIRECTORS

 

Substantially the same as introduced version.

 

Substantially the same as introduced version.

 

SUBCHAPTER C.  POWERS AND DUTIES

 

Sec. 8489.101.  GENERAL POWERS AND DUTIES. 

 

Sec. 8489.102.  MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.  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. 8489.103.  AUTHORITY FOR ROAD PROJECTS

 

Sec. 8489.104.  ROAD STANDARDS AND REQUIREMENTS. 

 

Sec. 8489.105.  WATER AND WASTEWATER INFRASTRUCTURE. 

 

Sec. 8489.106.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION AND DEVELOPMENT AGREEMENT.  (a)  The district shall comply with all applicable requirements of any ordinance or resolution that is adopted under Section 54.016 or 54.0165, Water Code, and that consents to the creation of the district or to the inclusion of land in the district.

(b)  Notwithstanding other law, a municipality may place a condition or restriction on the creation of the district or inclusion of land in the district that is:

(1)  expressly permitted by Sections 54.016(e) and (i), Water Code; or

(2)  contained in the development agreement entered into under Section 212.172, Local Government Code, and this chapter.

 

 

 

 

 

 

 

 

 

 

 

Substantially the same as introduced version.

 

Sec. 8489.108.  LIMITATION ON ANNEXATION OF LAND BY DISTRICT. 

 

Sec. 8489.109.  MUNICIPAL ANNEXATION ADJACENT TO DISTRICT. 

 

Sec. 8489.110.  LIMITS ON DISTRICT SERVICES.  Inside the corporate limits or extraterritorial jurisdiction of a municipality, the district may not provide without the municipality's consent:

(1)  solid waste collection, treatment, or disposal services; or

(2)  fire protection services.

 

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

 

Sec. 8489.151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The district may issue, without an election, bonds and other obligations secured by:

(1)  revenue other than ad valorem taxes;  or

(2)  contract payments described by Section 8489.153.

(b)  The district must hold an election in the manner provided by Chapters 49 and 54, Water Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes.

(c)  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.

 

Substantially the same as introduced versions.

 

Sec. 8489.153.  CONTRACT TAXES. 

 

SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS

 

Sec. 8489.201.  AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. 

 

Sec. 8489.202.  TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board 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 as required and in the manner provided by Sections 54.601 and 54.602, Water Code.

 

Sec. 8489.203.  BONDS FOR ROAD PROJECTS. 

 

 

 

SECTION 2.  Establishes initial boundaries for the Comal County Water Improvement District No. 3.

SECTION 2. Same as introduced version.

 

 

SECTION 3.  (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. Same as introduced version.

 

 

SECTION 4.  (a) Section 9048.107, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house.

(b)  If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 9048, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 9048.107 to read as follows:

Sec. 9048.107.  NO EMINENT DOMAIN POWER.  The district may not exercise the power of eminent domain.

(c)  This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution.

SECTION 4. 

 

 

 

 

(a)  If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 8489, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8489.111 to read as follows:

Sec. 8489.111.  NO EMINENT DOMAIN POWER.  The district may not exercise the power of eminent domain.

(b)  This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution.

 

 

 

 

SECTION 5.  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, 2013.

 

SECTION 5. Same as introduced version.