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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation, territory, and operation of municipal |
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management districts and public improvement districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 375.022(c), Local Government Code, is |
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amended to read as follows: |
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(c) The petition must: |
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(1) describe the boundaries of the proposed district: |
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(A) by metes and bounds; |
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(B) by verifiable landmarks, including a road, |
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creek, or railroad line; or |
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(C) if there is a recorded map or plat and survey |
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of the area, by lot and block number; |
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(2) demonstrate that the boundaries of the proposed |
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district comply with Section 375.045; |
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(3) state the specific purposes for which the district |
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will be created; |
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(4) [(3)] state the general nature of the work, |
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projects, or services proposed to be provided, the necessity for |
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those services, and the costs as estimated by the persons filing the |
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petition; |
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(5) [(4)] include a name of the district, which must be |
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generally descriptive of the location of the district, followed by |
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"Management District" or "Improvement District"; |
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(6) [(5)] include a proposed list of initial directors |
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that includes the directors' experience and initial term of |
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service; and |
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(7) [(6)] include a resolution of the governing body of |
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the municipality in support of the creation of the district. |
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(8) and show that the land to be included in the proposed |
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district is: unproductive, underdeveloped, or blighted. |
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(9) The attorney general shall determine, by application of |
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accepted legal principles, the meaning of "unproductive," |
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"underdeveloped," and "blighted" for purposes of section (9) and by |
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rule define those terms. |
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SECTION 2. Subchapter B, Chapter 375, Local Government |
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Code, is amended by adding Section 375.0225 to read as follows: |
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Sec. 375.0225. CREATION OF SIMILAR DISTRICT |
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PROHIBITED. The commission may not grant a petition to create a |
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district under this subchapter if, less than 10 years before the |
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date the commission receives the petition, there was introduced for |
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consideration by the legislature a bill to authorize by local law |
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the creation of a substantially similar district. |
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SECTION 3. Section 375.025(c), Local Government Code, is |
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amended to read as follows: |
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(c) If after the hearing the commission finds that the |
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petition conforms to the requirements of Section 375.022(c), that |
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the commission is not prohibited from granting the petition by |
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Section 375.0225, and that the district is feasible and necessary |
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and would benefit the public, the commission by order shall make |
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that finding and grant the petition. In determining if the project |
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is feasible and necessary and would benefit the public, the |
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commission shall consider: |
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(1) the availability of comparable services from other |
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systems, including special districts, municipalities, and regional |
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authorities; and |
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(2) the reasonableness of the proposed public purpose |
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projects and services. |
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SECTION 4. Subchapter C, Chapter 375, Local Government |
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Code, is amended by adding Section 375.045 to read as follows: |
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Sec. 375.045. RESIDENTIAL PROPERTY EXCLUDED IN CERTAIN |
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DISTRICTS. A district created after September 1, 2017, may not |
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include single-family detached residential property. |
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SECTION 5. Section 375.063, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.063. QUALIFICATIONS OF DIRECTOR. To be qualified |
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to serve as a director, a person must be at least 18 years old and: |
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(1) [a resident of the district;
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[(2)] an owner of property in the district; |
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(2) [(3)] an owner of stock, whether beneficial or |
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otherwise, of a corporate owner of property in the district; |
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(3) [(4)] an owner of a beneficial interest in a trust |
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that owns property in the district; or |
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(4) [(5)] an agent, employee, or tenant of a person |
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covered by Subdivision (1), (2), or (3) [, or (4)]. |
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SECTION 6. Sections 375.064(a), (b), and (c), Local |
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Government Code, are amended to read as follows: |
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(a) The initial and each succeeding board of directors shall, |
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and the owners of a majority of the assessed value of property |
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subject to assessment by the district may, recommend to the |
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governing body of the municipality persons to serve on the |
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succeeding board. |
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(b) After reviewing the recommendations, the governing body |
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shall approve or disapprove the directors recommended under |
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Subsection (a) [by the board]. |
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(c) If the governing body is not satisfied with the |
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recommendations submitted under Subsection (a) [by the board], the |
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board, on the request of the governing body, shall submit to the |
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governing body additional recommendations. |
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SECTION 7. Subchapter E, Chapter 375, Local Government |
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Code, is amended by adding Section 375.099 to read as follows: |
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Sec. 375.099. ONLINE PUBLICATION OF FISCAL INFORMATION. A |
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district that maintains an Internet website shall: |
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(1) post the district's financial records on the |
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website; or |
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(2) provide a link on the website to another Internet |
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website on which the information is posted. |
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SECTION 8. Section 375.161, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.161. [CERTAIN] RESIDENTIAL PROPERTY EXEMPTIONS |
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[EXEMPT]. (a) Except as provided by Subsection (b), the board may |
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not impose an impact fee, [assessment,] tax, or other requirement |
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for payment, construction, alteration, or dedication under this |
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chapter on single-family detached residential property, duplexes, |
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triplexes, and fourplexes. |
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(b) Subsection (a) [This section] does not apply to a tax |
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authorized or approved by the voters of the district or a required |
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payment for a service provided by the district, including water and |
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sewer services. |
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(c) The board may not impose an assessment on residential |
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property. |
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SECTION 9. Section 375.182, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.182. PROHIBITED USE OF FUNDS. (a) Funds may not |
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be spent, an assessment imposed, or a tax levied under this chapter |
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to finance the opening, reopening, or maintenance of a pass, canal, |
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or waterway across a barrier island connecting the Gulf of Mexico |
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with inland waters. |
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(b) A district may not use the proceeds of a bond to finance |
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an improvement project or service outside the district. |
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SECTION 10. Subchapter J, Chapter 375, Local Government |
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Code, is amended by adding Section 375.2015 to read as follows: |
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Sec. 375.2015. NOTICE OF PROPOSED BOND. Before a district |
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may authorize the issuance of a bond, the district must mail written |
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notice of the proposed bond to: |
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(1) the governing body of each municipality and county |
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in which the district is located; |
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(2) each senator and member of the house of |
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representatives who represents any part of the territory of the |
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county in which the district is located; and |
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(3) each person who owns real property in the district, |
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according to the most recent certified county property tax rolls. |
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SECTION 11. Section 375.205, Local Government Code, is |
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amended by adding Subsection (a-1) to read as follows: |
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(a-1) Not earlier than the 14th day before and not later than |
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the seventh day before the date the district submits a bond under |
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Subsection (a), the district shall send notice describing the |
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submitted bond to: |
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(1) the governing body of each municipality and county |
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in which the district is located; and |
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(2) each senator and member of the house of |
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representatives who represents any part of the territory of the |
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county in which the district is located. |
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SECTION 12. Section 375.262, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.262. DISSOLUTION BY PETITION BY OWNERS. Except as |
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limited by Section 375.264, the board shall dissolve the district |
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on written petition filed with the board by the owners of: |
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(1) 75 percent or more of the assessed value of the |
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property in the district based on the more recent certified county |
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property tax rolls; or |
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(2) 75 percent or more of the surface area of the |
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district, excluding roads, streets, highways, utility |
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rights-of-way, other public areas, and other property exempt from |
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assessment under Sections 375.161 and[,] 375.163, [and 375.164,] |
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according to the most recent certified county property tax rolls. |
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SECTION 13. Section 382.052(b), Local Government Code, is |
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amended to read as follows: |
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(b) If the population of the district is more than 1,000, to |
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be eligible to serve as a director, a person must be at least 18 |
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years old, reside in the district, and be: |
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(1) an owner of property in the district; |
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(2) an owner of stock, whether beneficial or otherwise, |
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of a corporate owner of property in the district; |
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(3) an owner of a beneficial interest in a trust that |
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owns property in the district; or |
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(4) an agent, employee, or tenant of a person covered by |
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Subdivision (1), (2), or (3) [meet the qualifications of Section
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375.063]. |
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SECTION 14. Section 3855.052(b), Special District Local |
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Laws Code, is amended to read as follows: |
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(b) Section 375.063(2) [375.063(3)], Local Government Code, |
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does not apply to the district. |
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SECTION 15. Section 375.164, Local Government Code, is |
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repealed. |
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SECTION 16. Sections 375.022 and 375.025, Local Government |
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Code, as amended by this Act, and Section 375.0225, Local |
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Government Code, as added by this Act, apply only to a petition |
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requesting the creation of a district submitted to the Texas |
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Commission on Environmental Quality on or after the effective date |
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of this Act. A petition submitted before the effective date of |
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this Act is governed by the law in effect when the petition is |
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submitted, and the former law is continued in effect for that |
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purpose. |
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SECTION 17. The change in law made by this Act to Section |
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375.063, Local Government Code, does not affect the entitlement of |
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a member serving on the board of directors of a district to which |
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that section applies immediately before the effective date of this |
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Act to continue to carry out the board's functions for the remainder |
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of the member's term. The change in law applies only to a member |
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appointed on or after the effective date of this Act. |
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SECTION 18. The termination of the authority for a district |
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to impose an assessment on residential property under Section |
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375.161, Local Government Code, as amended by this Act, does not |
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impair an obligation created before September 1, 2017, by the |
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issuance of bonds or other evidence of indebtedness for which |
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payment was pledged from an assessment imposed as previously |
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authorized by Chapter 375, Local Government Code. A district from |
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which payment was pledged as described by this section may continue |
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to impose the assessment against the property until the bond or |
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other indebtedness is discharged, but only if the cessation of the |
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imposition would impair the obligation. |
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SECTION 19. Section 375.182(b), Local Government Code, as |
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added by this Act, applies only to the use of the proceeds of a bond |
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issued on or after the effective date of this Act. The use of |
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proceeds of a bond issued before that date is governed by the law in |
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effect on the date the bonds were issued, and that law is continued |
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in effect for that purpose. |
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SECTION 20. Sections 375.2015 and 375.205(a-1), Local |
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Government Code, as added by this Act, apply only to bonds issued on |
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or after the effective date of this Act. Bonds issued before the |
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effective date of this Act are governed by the law in effect on the |
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date the bonds were issued, and the former law is continued in |
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effect for that purpose. |
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SECTION 21. Section 375.262, Local Government Code, as |
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amended by this Act, applies only to a petition filed on or after |
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the effective date of this Act. A petition filed before the |
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effective date of this Act is governed by the law in effect on the |
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date the petition was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 22. The changes in law made by this Act may not be |
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construed to impair an obligation under a contract entered into on |
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or after the effective date of this Act. A political subdivision |
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may fulfill the subdivision's obligations under a contract entered |
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into before that date but may not extend such a contract beyond the |
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contract's original term. |
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SECTION 23. This Act takes effect September 1, 2017. |