Oliverson Bill Creates 33.76-Acre MUD With No Bond Tax Cap

The text as introduced · 2,252 words

89R12609 MP-F

By: Oliverson
H.B. No. 5666

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Fenske Road Municipal Utility

District of Harris County; granting a limited power of eminent

domain; 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 7901A to read as follows:

CHAPTER 7901A. FENSKE ROAD MUNICIPAL UTILITY DISTRICT OF HARRIS

COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7901A.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 Fenske Road Municipal Utility

District of Harris County.

Sec. 7901A.0102. NATURE OF DISTRICT. The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec. 7901A.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. 7901A.0104. CONSENT OF MUNICIPALITY REQUIRED. The

temporary directors may not hold an election under Section

7901A.0103 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 as required by

applicable law.

Sec. 7901A.0105. 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. 7901A.0106. 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. 7901A.0201. GOVERNING BODY; TERMS. (a) The district

is governed by a board of five elected directors.

(b) Except as provided by Section 7901A.0202, directors

serve staggered four-year terms.

Sec. 7901A.0202. TEMPORARY DIRECTORS. (a) On or after the

effective date of the Act enacting this chapter, 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 temporary directors the five persons

named in the petition. The commission shall appoint as temporary

directors the five persons named in the petition.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under

Section 7901A.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 7901A.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 7901A.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. 7901A.0301. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 7901A.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. 7901A.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. 7901A.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. 7901A.0305. 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. 7901A.0306. DIVISION OF DISTRICT. This chapter

applies to any new district created by the division of the district

under Section 49.316, Water Code, and a new district has all the

powers and duties of the district.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 7901A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)

The district may issue, without an election, bonds and other

obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section

7901A.0403.

(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. 7901A.0402. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 7901A.0401, 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. 7901A.0403. CONTRACT TAXES. (a) In accordance with

Section 49.108, Water Code, the district may impose a tax other than

an operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district voters

voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 7901A.0501. 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. 7901A.0502. 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. 7901A.0503. 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 Fenske Road Municipal Utility District of

Harris County initially includes all the territory contained in the

following area:

All that certain 33.7594 acres of land being all that certain

called 32.7500 acre tract described as Tract I in the deed dated

July 26, 1985, from Marvin Treichel, et al to Howard Leon Treichel,

et ux, filed for record under Clerk File No. K132306, of the

Official Public Records of Real Property of Harris County, Texas,

and being all that certain called 1.00002 acre tract described in

the deed dated April 23, 2004, from Timothy A. Perry to Valleys

Mills Partners, Ltd. to filed for record under Clerk File

No. Z-053385, out of the Jacob Duckworth Survey, A-226, Harris

County, Texas, and being more particularly described by metes and

bounds as follows:

BEGINNING at a found 1" iron pipe marking the northwest corner of

said 32.7500 acre tract, said pipe located on the south

right-of-way line of Fenske Road (60' Wide as monumented);

THENCE N 85 35' 17" E - 761.55', with said south right-of-way line

to a set 1/2" iron rod with cap marking northeast corner of said

called 1.00002 acre;

THENCE S 01° 57' 40" E - 290.70', with the east line of said 1.00002

acre tract, to a set 5/8" iron rod with cap for an angle corner;

THENCE S 02° 02' 46" E - 388.02', with the west line of that certain

called 3.25 acre tract described in the deed dated November 11,

1976, from Rickey Kleppel, et ux to Larry E. Thieme, et ux, filed

for record under Clerk File No. F610177, Film Code No. 195-18-0683,

of the Official Public Records of Real Property of Harris County,

Texas to a set "PK" nail for corner;

THENCE N 85° 28' 07" E - 208.44', with the south line of said 3.25

acre tract tract, to a found 1" iron pipe marking the easterly

northeast corner of the aforementioned 32.7500 acre tract, the

southeast corner of said 3.25 acre tract and the northwest corner of

that certain called 33.8716 acre tract described as Tract II in the

deed dated July 26, 1985, from Marvin Treichel, et al to Howard Leon

Treichel, et ux, filed for record under Clerk File No. K132306,

Film Code No. 021-75-0610, of the Official Public Records of Real

Property of Harris County, Texas;

THENCE S 09° 09' 34" E - 984.93', with the northerly west line of

said 33.8716 acre tract, to a found 5/8" iron rod marking the

southeast corner of the aforementioned 32.7500 acre tract and an

interior corner of said 33.8716 acre tract;

THENCE S 87° 57' 07" W - 1,050.74'. with the westerly north line of

said 33.8716 acre tract, to a found 5/8" iron rod marking the

southwest corner of said 32.7500 acre tract and the westerly

northwest corner of said 33.8716 acre tract;

THENCE N 03° 27' 44" W - 1,616.13', to the POINT OF BEGINNING of the

herein described tract and containing 33.7594 acres (1,470,559

square feet) of land, more or less.

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

7901A, Special District Local Laws Code, as added by Section 1 of

this Act, is amended by adding Section 7901A.0307 to read as

follows:

Sec. 7901A.0307. 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, 2025.