H.B. No. 3877
 
 
 
 
AN ACT
  relating to the powers and duties of the Ellis County Municipal
  Utility District No. 1; granting a limited power of eminent domain;
  providing authority to issue bonds; providing authority to impose
  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 8467 to read as follows:
  CHAPTER 8467. ELLIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8467.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Ellis County Municipal
  Utility District No. 1.
         Sec. 8467.002.  NATURE OF DISTRICT. The district is a
  municipal utility district created under and essential to
  accomplish the purposes of Section 52, Article III, and Section 59,
  Article XVI, Texas Constitution.
         Sec. 8467.003.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.  (a)  
  All land and other property in the district will benefit from the
  improvements and services to be provided by the district.
         (b)  The district is created to accomplish the purposes of
  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. 8467.004.  ANNEXATION BY MUNICIPALITY. Notwithstanding
  any other law, on the written consent of the landowners and the
  district, a municipality in whose extraterritorial jurisdiction
  the district is located may annex a portion of the district. The
  district is not dissolved as a result of an annexation under this
  section.
         Sec. 8467.005.  LIMITED-PURPOSE ANNEXATION BY A
  MUNICIPALITY.  (a)  Notwithstanding any other law, the governing
  body of a municipality in whose extraterritorial jurisdiction the
  district is located may:
               (1)  enter into a strategic partnership agreement with
  the district; and
               (2)  annex all or a portion of the district for limited
  purposes under Section 43.0751, Local Government Code.
         (b)  An individual residing in the district is considered an
  inhabitant of a municipality for the purposes of determining the
  population of the municipality under Section 5, Article XI, Texas
  Constitution.
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 8467.051.  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. 8467.052.  DIVISION OF DISTRICT. (a) The district may
  be divided into two or more new districts only if the district:
               (1)  has no outstanding bonded debt; and
               (2)  is not imposing ad valorem taxes.
         (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 territory of the district as it existed on the date the
  district was created.
         (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)  An order dividing the district must:
               (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.
         (f)  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 Texas Commission on Environmental Quality and record the
  order in the real property records of each county in which the
  district is located.
         (g)  Any new district created by the division of the district
  shall hold a confirmation and directors' election as provided by
  Section 49.102, Water Code.
         (h)  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.
         (i)  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.
         Sec. 8467.053.  AUTHORITY FOR ROAD PROJECTS. Under Section
  52, Article III, Texas Constitution, the district may acquire,
  construct, improve, operate, or maintain macadamized, graveled, or
  paved roads or turnpikes, or improvements in aid of those roads or
  turnpikes inside the district.
         Sec. 8467.054.  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 the district is located.
         (b)  If a district is not located in the corporate limits of a
  municipality and is not subject to a development agreement with a
  municipality, a road project must meet all applicable construction
  standards, zoning and subdivision requirements, and regulations of
  each county in which the district is located.
         (c)  The district may not undertake a road project unless
  each municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located consents by resolution.
         Sec. 8467.055.  COMPLIANCE WITH MUNICIPAL CONSENT
  RESOLUTIONS. The district shall comply with all applicable
  requirements of any resolution, adopted by the governing body of a
  municipality, that consented to the creation of the district or to
  the inclusion of land in the district.
  SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
         Sec. 8467.101.  TAX TO REPAY BONDS FOR ROAD PROJECTS. The
  district may impose a tax to pay the principal of or interest on
  bonds issued under Section 8467.151.
  SUBCHAPTER D.  BONDS
         Sec. 8467.151.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or
  other obligations as provided by Chapters 49 and 54, Water Code, to
  finance the construction, maintenance, or operation of projects
  under Section 8467.053.
         (b)  The district may not issue bonds or other obligations
  secured wholly or partly by ad valorem taxation to finance projects
  authorized by Section 8467.053 unless the issuance is approved by a
  vote of a two-thirds majority of the voters in the district or of
  the defined areas to be benefited by the project as provided by
  Subchapter J, Chapter 54, Water Code, voting at an election called
  for that purpose. The simple majority vote approval required by
  Section 54.808(a), Water Code, does not apply to an election under
  this subsection.
         (c)  Bonds or other obligations issued or incurred to finance
  projects authorized by Section 8467.053 may not exceed one-fourth
  of the assessed value of the real property in the district or the
  defined area as provided by Subchapter J, Chapter 54, Water Code.
         SECTION 2.  (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 3.  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, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3877 was passed by the House on May
  14, 2013, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3877 was passed by the Senate on May
  22, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor