By: Lozano (Senate Sponsor - Zaffirini) H.B. No. 4275
         (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 creation of the Ingleside Municipal Utility
  District No. 1; providing authority to issue bonds; granting
  limited power of eminent domain; 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 7998 to read as follows:
  CHAPTER 7998.  INGLESIDE MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7998.001.  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 Ingleside Municipal Utility
  District No. 1.
         Sec. 7998.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7998.003.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 7998.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 7998.003
  until each municipality in whose corporate limits or
  extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         Sec. 7998.005.  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. 7998.006.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 2 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure.  A mistake made in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 7998.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7998.052, directors serve
  staggered four-year terms.
         Sec. 7998.052.  TEMPORARY DIRECTORS.  (a)  The temporary
  board consists of:
               (1)  Richard Dupriest;
               (2)  Raymond F. Wetegrove;
               (3)  Joseph M. Wetegrove;
               (4)  Jane Helm; and
               (5)  Steven Ray.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 7998.003; or
               (2)  the fourth anniversary of the effective date of
  the Act enacting this chapter.
         (c)  If permanent directors have not been elected under
  Section 7998.003 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 7998.003; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 7998.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7998.102.  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. 7998.103.  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, in aid of those roads.
         Sec. 7998.104.  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. 7998.105.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
  OR RESOLUTION.  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.
         Sec. 7998.106.  DIVISION OF DISTRICT. (a) The district may
  be divided into two or more districts only if:
               (1)  the district has no outstanding bonded debt;
               (2)  the district is not imposing ad valorem taxes; and
               (3)  the requirements of Subsection (i), as applicable,
  are satisfied.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  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 of the Act enacting this
  chapter.
         (d)  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.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  7998.003 to confirm the district's creation.
         (f)  An order dividing the district shall:
               (1)  name the new district;
               (2)  include the metes and bounds of each new district;
               (3)  appoint temporary directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between the district and each new district.
         (g)  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 commission and record the order in the real property
  records of each county in which the district is located.
         (h)  A new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 7998.003.
         (i)  If the district is located wholly or partly in the
  corporate limits or the extraterritorial jurisdiction of a
  municipality, the district may not divide under this section unless
  the municipality by resolution or ordinance consents to the
  division of the district.  If the district is not located wholly or
  partly in the corporate limits or extraterritorial jurisdiction of
  a municipality, the district may not divide under this section
  unless the commissioners court of each county in which the district
  is wholly or partly located first adopts a resolution or order in
  support of the division of the district.
         (j)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 7998.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district may issue, without an election, bonds and other
  obligations secured by revenue other than ad valorem taxes.
         (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. 7998.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7998.151, 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. 7998.153.  WATER AND SEWER RATES.  Notwithstanding any
  other law, the district shall establish the same rates for
  residential and commercial classes of customers for the provision
  of water and sewer services.  For purposes of this section, the
  commercial class may not include apartment complexes or other
  multifamily dwellings.
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 7998.201.  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. 7998.202.  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. 7998.203.  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.  The Ingleside Municipal Utility District No. 1
  initially includes all the territory contained in the following
  area:
         Being 625 acres, more or less, out of the Wm McDonough Survey,
  Abstract 184, the R.S. Williamson Survey, Abstract 283, the Edmond
  St. John Survey, Abstract 250, the Louis Von Zacharias Survey,
  Abstract 272, and the John Robinson Survey, Abstract 226, all
  tracts located in the City of Ingleside, San Patricio County,
  Texas.
         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.  (a)  If this Act does not receive a two-thirds
  vote of all the members elected to each house, Subchapter C, Chapter
  7998, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 7998.107 to read as follows:
         Sec. 7998.107.  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, 2017.
 
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