H.B. No. 4335           relating to the creation of the Willacy County Municipal Utility   District No. 1; 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 8014 to read as follows:   CHAPTER 8014. WILLACY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 8014.001.  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 Willacy County Municipal   Utility District No. 1.          Sec. 8014.002.  NATURE OF DISTRICT.  The district is a   municipal utility district created under Section 59, Article XVI,   Texas Constitution.          Sec. 8014.003.  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. 8014.004.  CONSENT OF MUNICIPALITY REQUIRED. The   temporary directors may not hold an election under Section 8014.003   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. 8014.005.  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, or improvement of   macadamized, graveled, or paved roads described by Section 54.234,   Water Code, or improvements, including storm drainage, in aid of   those roads.          Sec. 8014.006.  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. 8014.051.  GOVERNING BODY; TERMS.  (a)  The district is   governed by a board of five elected directors.          (b)  Except as provided by Section 8014.052, directors serve   staggered four-year terms.          Sec. 8014.052.  TEMPORARY DIRECTORS. (a) The temporary   board consists of:                (1)  Charles E. Wetegrove;                (2)  Raymond F. Wetegrove;                (3)  Joseph M. Wetegrove;                (4)  Fred Ballard; and                (5)  Craig Childs.          (b)  Temporary directors serve until the earlier of:                (1)  the date permanent directors are elected under   Section 8014.003; 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 8014.003 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 8014.003; 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. 8014.101.  GENERAL POWERS AND DUTIES.  The district has   the powers and duties necessary to accomplish the purposes for   which the district is created.          Sec. 8014.102.  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. 8014.103.  AUTHORITY FOR ROAD PROJECTS. (a)  Under   Section 52, Article III, Texas Constitution, the district may   design, acquire, construct, finance, issue bonds for, improve, and   convey to this state, a county, or a municipality for operation and   maintenance macadamized, graveled, or paved roads described by   Section 54.234, Water Code, or improvements, including storm   drainage, in aid of those roads.          (b)  The district may exercise the powers provided by this   section without submitting a petition to or obtaining approval from   the commission as required by Section 54.234, Water Code.          Sec. 8014.104.  APPROVAL OF ROAD PROJECT.  (a)  The district   may not undertake a road project authorized by Section 8014.103   unless:                (1)  each municipality or county that will operate and   maintain the road has approved the plans and specifications of the   road project, if a municipality or county will operate and maintain   the road; or                (2)  the Texas Transportation Commission has approved   the plans and specifications of the road project, if the state will   operate and maintain the road.          (b)  Except as provided by Subsection (a), the district is   not required to obtain approval from the Texas Transportation   Commission to design, acquire, construct, finance, issue bonds for,   improve, or convey a road project.          Sec. 8014.105.  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. 8014.106.  DIVISION OF DISTRICT.  (a)  The district may   be divided into two or more new 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 (k) have been met.          (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)  Any 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 creating 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   8014.003 to confirm the creation of the district.          (f)  An order dividing the district shall:                (1)  name each new district;                (2)  include the metes and bounds description of the   territory of each new district;                (3)  appoint temporary directors for each new district;   and                (4)  provide for the division of assets and liabilities   between or among the new districts.          (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)  Any new district created by the division of the district   shall hold a confirmation and directors' election as required by   Section 8014.003.          (i)  If the creation of the new district is confirmed, the   new district shall provide the election date and results to the   commission.          (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.          (k)  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 adopts a resolution or order consenting   to the division of the district.          Sec. 8014.107.  LIMITATION ON USE OF EMINENT DOMAIN. The   district may not exercise the power of eminent domain outside the   district to acquire a site or easement for:                (1)  a road project authorized by Section 8014.103; or                (2)  a recreational facility as defined by Section   49.462, Water Code.   SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS          Sec. 8014.151.  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. 8014.152.  OPERATION AND MAINTENANCE TAX.  (a)  If   authorized at an election held under Section 8014.151, 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. 8014.153.  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. 8014.201.  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. 8014.202.  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. 8014.203.  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 Willacy County Municipal Utility District   No. 1 initially includes all the territory contained in the   following area:          Tracts 1, 2, 3, 4, & 5, Raymond Estate Reserve out of Share   Number 36, San Juan de Carricitos Grant, recorded in Volume 274,   Pages 106, Official Records, Willacy County, Texas, containing   501.42 acres gross and 497.71 acres net.          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)  Section 8014.107, Special District Local   Laws Code, as added by Section 1 of this Act, takes effect only if   this Act receives a two-thirds vote of all the members elected to   each house.          (b)  If this Act does not receive a two-thirds vote of all the   members elected to each house, Subchapter C, Chapter 8014, Special   District Local Laws Code, as added by Section 1 of this Act, is   amended by adding Section 8014.107 to read as follows:          Sec. 8014.107.  NO EMINENT DOMAIN POWER. The district may   not exercise the power of eminent domain.          (c)  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 June 1, 2017, 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 effect on that   date, this Act takes effect September 1, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 4335 was passed by the House on May   19, 2017, by the following vote:  Yeas 137, Nays 7, 2 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 4335 was passed by the Senate on May   24, 2017, by the following vote:  Yeas 30, Nays 1.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor