By: Metcalf (Senate Sponsor - Creighton) H.B. No. 5396
         (In the Senate - Received from the House May 15, 2023;
  May 15, 2023, read first time and referred to Committee on Local
  Government; May 19, 2023, reported favorably by the following
  vote:  Yeas 9, Nays 0; May 19, 2023, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the powers and duties of the Stanley Lake Municipal
  Utility District; providing authority to issue bonds; providing
  authority to impose 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 7983A to read as follows:
  CHAPTER 7983A.  STANLEY LAKE MUNICIPAL UTILITY DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7983A.0101.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "District" means the Stanley Lake Municipal
  Utility  District.
         Sec. 7983A.0102.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7983A.0103.  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.
  SUBCHAPTER B.  POWERS AND DUTIES
         Sec. 7983A.0201.  GENERAL POWERS AND DUTIES. (a) The
  district has the powers and duties necessary to accomplish the
  purposes for which the district is created.
         (b)  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. 7983A.0202.  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. 7983A.0203.  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.
  SUBCHAPTER C.  DEFINED AREAS
         Sec. 7983A.0301.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
  DESIGNATED PROPERTY. The district may define areas or designate
  certain property of the district to pay for improvements,
  facilities, or services that primarily benefit that area or
  property and do not generally and directly benefit the district as a
  whole.
         Sec. 7983A.0302.  PROCEDURE FOR ELECTION. (a) Before the
  district may impose an ad valorem tax applicable only to the defined
  area or designated property or issue bonds payable from ad valorem
  taxes of the defined area or designated property, the board shall
  hold an election in the defined area or in the designated property
  only.
         (b)  The board may submit the issues to the voters on the same
  ballot to be used in another election.
         Sec. 7983A.0303.  DECLARING RESULT AND ISSUING ORDER. (a)
  If a majority of the voters voting at the election approve the
  proposition or propositions, the board shall declare the results
  and, by order, shall establish the defined area and describe it by
  metes and bounds or designate the specific property.
         (b)  A court may not review the board's order except on the
  ground of fraud, palpable error, or arbitrary and confiscatory
  abuse of discretion.
         Sec. 7983A.0304.  TAXES FOR SERVICES, IMPROVEMENTS, AND
  FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
  approval and adoption of the order described by Section 7983A.0303,
  the district may apply separately, differently, equitably, and
  specifically its taxing power and lien authority to the defined
  area or designated property to provide money to construct,
  administer, maintain, and operate services, improvements, and
  facilities that primarily benefit the defined area or designated
  property.
         Sec. 7983A.0305.  ISSUANCE OF BONDS FOR DEFINED AREA OR
  DESIGNATED PROPERTY. After the order under Section 7983A.0303 is
  adopted, the district may issue bonds to provide for any land,
  improvements, facilities, plants, equipment, and appliances for
  the defined area or designated property.
  SUBCHAPTER D.  BONDS AND OTHER OBLIGATIONS
         Sec. 7983A.0401.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS FOR ROAD PROJECTS.  (a)  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 a road
  project authorized by Section 7983A.0202.
         (b)  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. 7983A.0402.  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. 7983A.0403.  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 Stanley Lake Municipal Utility District
  retains all rights, powers, privileges, authority, duties, and
  functions that it had before the effective date of this Act.
         SECTION 3.  (a) The legislature validates and confirms all
  governmental acts and proceedings of the Stanley Lake Municipal
  Utility District that were taken before the effective date of this
  Act.
         (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 4.  (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 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, 2023.
 
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