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AN ACT
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relating to the creation of the Ingleside Municipal Utility |
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District No. 1; providing authority to issue bonds; granting |
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limited power of eminent domain; providing authority to impose |
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assessments, fees, and taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 7998 to read as follows: |
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CHAPTER 7998. INGLESIDE MUNICIPAL UTILITY DISTRICT NO. 1 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 7998.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(3) "Director" means a board member. |
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(4) "District" means the Ingleside Municipal Utility |
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District No. 1. |
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Sec. 7998.002. NATURE OF DISTRICT. The district is a |
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municipal utility district created under Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 7998.003. CONFIRMATION AND DIRECTORS' ELECTION |
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REQUIRED. The temporary directors shall hold an election to |
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confirm the creation of the district and to elect five permanent |
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directors as provided by Section 49.102, Water Code. |
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Sec. 7998.004. CONSENT OF MUNICIPALITY REQUIRED. The |
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temporary directors may not hold an election under Section 7998.003 |
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until each municipality in whose corporate limits or |
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extraterritorial jurisdiction the district is located has |
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consented by ordinance or resolution to the creation of the |
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district and to the inclusion of land in the district. |
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Sec. 7998.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) |
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The district is created to serve a public purpose and benefit. |
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(b) The district is created to accomplish the purposes of: |
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(1) a municipal utility district as provided by |
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general law and Section 59, Article XVI, Texas Constitution; and |
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(2) Section 52, Article III, Texas Constitution, that |
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relate to the construction, acquisition, improvement, operation, |
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or maintenance of macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7998.006. INITIAL DISTRICT TERRITORY. (a) The |
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district is initially composed of the territory described by |
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Section 2 of the Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake made in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to issue any type of bond for the purposes |
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for which the district is created or to pay the principal of and |
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interest on a bond; |
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(3) right to impose a tax; or |
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(4) legality or operation. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 7998.051. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of five elected directors. |
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(b) Except as provided by Section 7998.052, directors serve |
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staggered four-year terms. |
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Sec. 7998.052. TEMPORARY DIRECTORS. (a) The temporary |
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board consists of: |
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(1) Richard Dupriest; |
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(2) Raymond F. Wetegrove; |
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(3) Joseph M. Wetegrove; |
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(4) Jane Helm; and |
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(5) Steven Ray. |
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(b) Temporary directors serve until the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7998.003; or |
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(2) the fourth anniversary of the effective date of |
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the Act enacting this chapter. |
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(c) If permanent directors have not been elected under |
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Section 7998.003 and the terms of the temporary directors have |
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expired, successor temporary directors shall be appointed or |
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reappointed as provided by Subsection (d) to serve terms that |
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expire on the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7998.003; or |
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(2) the fourth anniversary of the date of the |
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appointment or reappointment. |
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(d) If Subsection (c) applies, the owner or owners of a |
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majority of the assessed value of the real property in the district |
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may submit a petition to the commission requesting that the |
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commission appoint as successor temporary directors the five |
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persons named in the petition. The commission shall appoint as |
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successor temporary directors the five persons named in the |
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petition. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 7998.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 7998.102. MUNICIPAL UTILITY DISTRICT POWERS AND |
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DUTIES. The district has the powers and duties provided by the |
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general law of this state, including Chapters 49 and 54, Water Code, |
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applicable to municipal utility districts created under Section 59, |
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Article XVI, Texas Constitution. |
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Sec. 7998.103. AUTHORITY FOR ROAD PROJECTS. Under Section |
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52, Article III, Texas Constitution, the district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7998.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road |
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project must meet all applicable construction standards, zoning and |
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subdivision requirements, and regulations of each municipality in |
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whose corporate limits or extraterritorial jurisdiction the road |
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project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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Sec. 7998.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE |
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OR RESOLUTION. The district shall comply with all applicable |
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requirements of any ordinance or resolution that is adopted under |
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Section 54.016 or 54.0165, Water Code, and that consents to the |
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creation of the district or to the inclusion of land in the |
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district. |
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Sec. 7998.106. DIVISION OF DISTRICT. (a) The district may |
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be divided into two or more districts only if: |
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(1) the district has no outstanding bonded debt; |
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(2) the district is not imposing ad valorem taxes; and |
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(3) the requirements of Subsection (i), as applicable, |
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are satisfied. |
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(b) This chapter applies to any new district created by the |
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division of the district, and a new district has all the powers and |
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duties of the district. |
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(c) A new district created by the division of the district |
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may not, at the time the new district is created, contain any land |
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outside the area described by Section 2 of the Act enacting this |
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chapter. |
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(d) The board, on its own motion or on receipt of a petition |
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signed by the owner or owners of a majority of the assessed value of |
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the real property in the district, may adopt an order dividing the |
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district. |
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(e) The board may adopt an order dividing the district |
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before or after the date the board holds an election under Section |
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7998.003 to confirm the district's creation. |
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(f) An order dividing the district shall: |
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(1) name the new district; |
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(2) include the metes and bounds of each new district; |
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(3) appoint temporary directors for each new district; |
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and |
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(4) provide for the division of assets and liabilities |
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between the district and each new district. |
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(g) On or before the 30th day after the date of adoption of |
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an order dividing the district, the district shall file the order |
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with the commission and record the order in the real property |
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records of each county in which the district is located. |
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(h) A new district created by the division of the district |
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shall hold a confirmation and directors' election as required by |
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Section 7998.003. |
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(i) If the district is located wholly or partly in the |
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corporate limits or the extraterritorial jurisdiction of a |
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municipality, the district may not divide under this section unless |
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the municipality by resolution or ordinance consents to the |
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division of the district. If the district is not located wholly or |
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partly in the corporate limits or extraterritorial jurisdiction of |
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a municipality, the district may not divide under this section |
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unless the commissioners court of each county in which the district |
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is wholly or partly located first adopts a resolution or order in |
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support of the division of the district. |
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(j) Any new district created by the division of the district |
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must hold an election as required by this chapter to obtain voter |
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approval before the district may impose a maintenance tax or issue |
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bonds payable wholly or partly from ad valorem taxes. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 7998.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The |
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district may issue, without an election, bonds and other |
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obligations secured by revenue other than ad valorem taxes. |
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(b) The district must hold an election in the manner |
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provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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before the district may impose an ad valorem tax or issue bonds |
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payable from ad valorem taxes. |
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(c) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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Sec. 7998.152. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election held under Section 7998.151, the district |
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may impose an operation and maintenance tax on taxable property in |
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the district in accordance with Section 49.107, Water Code. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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Sec. 7998.153. WATER AND SEWER RATES. Notwithstanding any |
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other law, the district shall establish the same rates for |
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residential and commercial classes of customers for the provision |
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of water and sewer services. For purposes of this section, the |
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commercial class may not include apartment complexes or other |
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multifamily dwellings. |
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SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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Sec. 7998.201. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS. The district may issue bonds or other obligations |
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payable wholly or partly from ad valorem taxes, impact fees, |
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revenue, contract payments, grants, or other district money, or any |
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combination of those sources, to pay for any authorized district |
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purpose. |
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Sec. 7998.202. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct ad valorem tax, without limit as to rate or amount, while all |
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or part of the bonds are outstanding as required and in the manner |
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provided by Sections 54.601 and 54.602, Water Code. |
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Sec. 7998.203. BONDS FOR ROAD PROJECTS. At the time of |
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issuance, the total principal amount of bonds or other obligations |
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issued or incurred to finance road projects and payable from ad |
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valorem taxes may not exceed one-fourth of the assessed value of the |
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real property in the district. |
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SECTION 2. The Ingleside Municipal Utility District No. 1 |
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initially includes all the territory contained in the following |
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area: |
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Being 625 acres, more or less, out of the Wm McDonough Survey, |
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Abstract 184, the R.S. Williamson Survey, Abstract 283, the Edmond |
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St. John Survey, Abstract 250, the Louis Von Zacharias Survey, |
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Abstract 272, and the John Robinson Survey, Abstract 226, all |
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tracts located in the City of Ingleside, San Patricio County, |
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Texas. |
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SECTION 3. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 4. (a) If this Act does not receive a two-thirds |
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vote of all the members elected to each house, Subchapter C, Chapter |
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7998, Special District Local Laws Code, as added by Section 1 of |
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this Act, is amended by adding Section 7998.107 to read as follows: |
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Sec. 7998.107. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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(b) This section is not intended to be an expression of a |
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legislative interpretation of the requirements of Section 17(c), |
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Article I, Texas Constitution. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4275 was passed by the House on May |
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19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4275 was passed by the Senate on May |
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24, 2017, by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |