By: Isaac (Senate Sponsor - Campbell) H.B. No. 4270
         (In the Senate - Received from the House May 19, 2017;
  May 19, 2017, read first time and referred to Committee on
  Administration; May 23, 2017, reported favorably by the following
  vote:  Yeas 7, Nays 0; May 23, 2017, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the Anthem Municipal Utility District; providing
  authority to issue bonds; providing authority to impose
  assessments, fees, and taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 7979 to read as follows:
  CHAPTER 7979.  ANTHEM MUNICIPAL UTILITY DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7979.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Anthem Municipal Utility
  District.
         Sec. 7979.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7979.003.  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 and landscaping, in aid of
  those roads.
  SUBCHAPTER B.  POWERS AND DUTIES
         Sec. 7979.051.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7979.052.  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. 7979.053.  AUTHORITY FOR ROAD PROJECTS. 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 and landscaping, in aid of
  those roads.
         Sec. 7979.054.  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. 7979.055.  STRATEGIC PARTNERSHIP AGREEMENT. The
  district may negotiate and enter into a written strategic
  partnership agreement with:
               (1)  a municipality under Section 43.0751, Local
  Government Code; and
               (2)  a municipality that provides water and wastewater
  services to the district.
  SUBCHAPTER C.  GENERAL FINANCIAL PROVISIONS
         Sec. 7979.101.  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 7979.103.
         (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.
         Sec. 7979.102.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7979.101, the district
  may impose an operation and maintenance tax on taxable property in
  the district in accordance with Section 49.107, Water Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 7979.103.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
  SUBCHAPTER D.  ASSESSMENTS; APPLICABILITY OF IMPACT FEES AND
  ASSESSMENTS
         Sec. 7979.151.  PETITION REQUIRED FOR FINANCING
  RECREATIONAL FACILITIES, IMPROVEMENTS, AND SERVICES WITH
  ASSESSMENTS. (a) The board may finance the construction or
  maintenance of a recreational facility or improvement or finance
  the provision of a recreational service with assessments on
  commercial or residential property, or both, under this subchapter,
  but only if:
               (1)  a written petition requesting that facility,
  improvement, or service has been filed with the board; and
               (2)  the board holds a hearing on the proposed
  assessments.
         (b)  The petition must be signed by the owners of a majority
  of the assessed value of real property in the district subject to
  assessment according to the most recent certified tax appraisal
  roll for the county.
         Sec. 7979.152.  METHOD OF NOTICE FOR HEARING. The district
  shall mail notice of the hearing to each property owner in the
  district who will be subject to the assessment at the current
  address to be assessed as reflected on the tax rolls.  The district
  may mail the notice by certified or first class United States mail.
  The board shall determine the method of notice.
         Sec. 7979.153.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) An
  assessment or a reassessment imposed under this subchapter by the
  district, penalties and interest on an assessment or reassessment,
  an expense of collection, and reasonable attorney's fees incurred
  by the district:
               (1)  are a first and prior lien against the property
  assessed;
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and a charge against
  the owners of the property even if the owners are not named in the
  assessment proceedings.
         (b)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (c)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         Sec. 7979.154.  UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
  ASSESSMENTS. The district may not impose an impact fee or
  assessment on the property, including the equipment,
  rights-of-way, facilities, or improvements, of:
               (1)  an electric utility or a power generation company
  as defined by Section 31.002, Utilities Code;
               (2)  a gas utility as defined by Section 101.003 or
  121.001, Utilities Code;
               (3)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
               (4)  a person who provides to the public cable
  television or advanced telecommunications services.
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 7979.201.  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. 7979.202.  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. 7979.203.  BONDS FOR ROAD PROJECTS. 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) All governmental and proprietary actions
  and proceedings of the Anthem Municipal Utility District taken
  before the effective date of this Act are validated, ratified, and
  confirmed in all respects as of the dates on which they occurred.
         (b)  This section does not apply to any matter that on the
  effective date of this Act:
               (1)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final court
  judgment; or
               (2)  has been held invalid by a final court judgment.
         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 4.  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, 2017.
 
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