By: Kitzman (Senate Sponsor - Kolkhorst) H.B. No. 5411
         (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
 
 
 
  COMMITTEE VOTE
 
 
         YeaNayAbsentPNV
         BettencourtX
         SpringerX
         EckhardtX
         GutierrezX
         HallX
         NicholsX
         ParkerX
         PaxtonX
         WestX
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the board of directors and powers and duties of the
  Twinwood Municipal Utility District No. 1; 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 8026A to read as follows:
  CHAPTER 8026A. TWINWOOD MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8026A.0101.  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 Twinwood Municipal Utility
  District No. 1.
         Sec. 8026A.0102.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8026A.0103.  CONFIRMATION AND DIRECTOR 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. 8026A.0104.  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.  BOARD OF DIRECTORS
         Sec. 8026A.0201.  GOVERNING BODY; TERMS.  (a)  The district
  is governed by a board of five elected directors.
         (b)  Except as provided by Section 8026A.0202, directors
  serve staggered four-year terms.
         Sec. 8026A.0202.  TEMPORARY DIRECTORS.  (a)  The temporary
  board consists of:
               (1)  LaKeta Morris;
               (2)  Brian Alexander;
               (3)  Jennifer Ramirez;
               (4)  Kyle Jones; and
               (5)  John Northington Jr.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 8026A.0103; 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 8026A.0103 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 8026A.0103; 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. 8026A.0301.  GENERAL POWERS AND DUTIES.  The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8026A.0302.  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. 8026A.0303.  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. 8026A.0304.  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. 8026A.0305.  DIVISION OF DISTRICT. (a) 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.
         (b)  An order dividing a district may create one or more new
  districts and may provide for the continuation of the district.
         (c)  An order dividing the district shall:
               (1)  name any new district;
               (2)  include the metes and bounds description of the
  territory of each of the districts;
               (3)  appoint temporary directors for any new district;
  and
               (4)  provide for the division of assets and liabilities
  between the districts.
         (d)  The board may adopt an order dividing the district
  before or after the date the board holds an election to confirm the
  district's creation.
         (e)  The district may be divided only if the district:
               (1)  has never issued any bonds; and
               (2)  is not imposing ad valorem taxes.
         (f)   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 territory of the district as it existed on January 1,
  2023.
         (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)  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.
         (i)  A new district created by the division of the district
  shall hold a confirmation and directors' election.
         (j)  If the creation of the new district is confirmed, the
  new district shall provide the election date and results to the
  commission.
         (k)  A 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.
         (l)  The district may continue to rely on confirmation,
  directors', bond, or tax elections held prior to the division.
         (m)  Municipal consent to the creation of the district and to
  the inclusion of land in the district acts as municipal consent to
  the creation of any new district created by the division of the
  district and to the inclusion of land in the new district.
  SUBCHAPTER D. BONDS AND OTHER OBLIGATIONS
         Sec. 8026A.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,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for a road project authorized
  by Section 8026A.0303.
         (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.
         (c)  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.
         Sec. 8026A.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.
         SECTION 2.  The Twinwood Municipal Utility District No. 1
  retains all the 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 Twinwood Municipal Utility
  District No. 1 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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