H.B. No. 4749

	AN ACT
	relating to the creation of the Rose City Municipal Utility
	District; granting a limited power of eminent domain; providing
	authority to issue bonds; providing authority to impose assessments
	and fees.
	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 7958 to read as follows:
	CHAPTER 7958. ROSE CITY MUNICIPAL UTILITY DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 7958.0101.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "City" means the City of Tyler.
	(3)  "Commission" means the Texas Commission on
	Environmental Quality.
	(4)  "Director" means a board member.
	(5)  "District" means the Rose City Municipal Utility
	District.
	(6)  "Utility commission" means the Public Utility
	Commission of Texas.
	Sec. 7958.0102.  NATURE OF DISTRICT. The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 7958.0103.  CONFIRMATION ELECTION REQUIRED. The
	initial directors appointed under Section 7958.0201 shall hold an
	election to confirm the creation of the district as provided by
	Section 49.102, Water Code.
	Sec. 7958.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section
	7958.0103 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.
	Sec. 7958.0105.  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 a
	municipal utility district as provided by general law and Section
	59, Article XVI, Texas Constitution.
	Sec. 7958.0106.  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; or
	(3)  legality or operation.
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 7958.0201.  GOVERNING BODY; TERMS. (a) The district is
	governed by a board of five directors appointed as follows:
	(1)  three directors appointed by the city; and
	(2)  two directors appointed by the Smith County
	Commissioners Court.
	(b)  Directors serve staggered four-year terms.
	(c)  The appointing entities shall appoint the initial
	directors not later than September 1, 2020. The initial directors
	appointed under Subsection (a)(1) serve a four-year term, and the
	directors appointed under Subsection (a)(2) serve a two-year term.
	This subsection expires September 1, 2023.
	Sec. 7958.0202.  QUALIFICATIONS OF DIRECTORS. (a)
	Notwithstanding any other law:
	(1)  an officer or employee of the city may serve as a
	director of the district; and
	(2)  a member of the governing body of the city may
	serve as a director of the district.
	(b)  A person who qualifies to serve as a director is
	qualified to participate in all votes pertaining to the business of
	the district, subject to Section 49.058, Water Code.
	(c)  Section 49.052, Water Code, does not apply to the
	district.
	Sec. 7958.0203.  COMPENSATION; REIMBURSEMENT. A director
	serves without compensation but may receive reimbursement for
	actual expenses reasonably and necessarily incurred while engaging
	in activities on behalf of the district.
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 7958.0301.  GENERAL POWERS AND DUTIES. The district
	has the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 7958.0302.  MUNICIPAL UTILITY DISTRICT POWERS AND
	DUTIES. (a) Subject to Subsection (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.
	(b)  The district may provide only sewer and wastewater
	services, including the acquisition, construction, contracting,
	financing, maintenance, operation, and planning of sewer and
	wastewater facilities or systems.
	Sec. 7958.0303.  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. 7958.0304.  LIMITED POWER OF EMINENT DOMAIN. The
	district may exercise the power of eminent domain only for the
	limited purpose of acquiring or constructing sewer and wastewater
	facilities.
	Sec. 7958.0305.  CONTRACTING. The district may contract
	with a political subdivision or private operator to operate and
	maintain the district's sewer and wastewater facilities.
	Sec. 7958.0306.  CERTIFICATE OF PUBLIC CONVENIENCE AND
	NECESSITY. (a) Notwithstanding Chapter 13, Water Code, the
	district may provide sewer and wastewater service without a
	certificate of convenience and necessity.
	(b)  Not later than the 30th day before the date the district
	intends to provide sewer and wastewater service, the district must
	notify the utility commission and each retail public utility that
	provides sewer and wastewater services in the district.
	(c)  If the district does not acquire a retail public utility
	that holds a certificate of public convenience and necessity for
	providing sewer and wastewater service in the district territory,
	the district shall:
	(1)  not later than the 30th day after the date the
	district begins providing sewer and wastewater service, petition
	the utility commission to decertify the territory inside the
	district of the existing certificate holder; and
	(2)  compensate the existing certificate holder in an
	amount determined by the utility commission.
	Sec. 7958.0307.  PROFESSIONAL SERVICES. The district may
	contract with a political subdivision to provide professional
	services for the district, including legal services related to the
	exercise of eminent domain.
	Sec. 7958.0308.  SUPERMAJORITY VOTE REQUIRED FOR CERTAIN
	ACTIONS. At least four board members must vote in favor of a
	resolution before the board may:
	(1)  increase rates or assessments by more than five
	percent;
	(2)  incur debt or increase the amount of debt that the
	district has outstanding; or
	(3)  order a dissolution election under Section
	7958.0601.
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 7958.0401.  ELECTIONS REGARDING BONDS. The district
	may issue, without an election, bonds and other obligations secured
	by revenue other than ad valorem taxes.
	Sec. 7958.0402.  PROHIBITION ON IMPOSITION OF TAXES. (a) The
	district may not impose an ad valorem tax for any purpose.
	(b)  Section 49.107, Water Code, does not apply to the
	district.
	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
	Sec. 7958.0501.  AUTHORITY TO ISSUE BONDS AND OTHER
	OBLIGATIONS. The district may issue bonds or other obligations
	payable wholly or partly from impact fees, revenue, contract
	payments, grants, or other district money, or any combination of
	those sources, to pay for any authorized district purpose.
	SUBCHAPTER F. DISSOLUTION BY ELECTION
	Sec. 7958.0601.  DISSOLUTION ELECTION CALLED BY BOARD. The
	board may order an election on the question of dissolving the
	district and transferring the district's assets and obligations to
	another political subdivision of the state, if the board concludes
	after a public hearing held on the issue that it is in the best
	interest of the district's residents and of the persons served by
	the district for the district to dissolve.
	Sec. 7958.0602.  DISSOLUTION ELECTION CALLED BY PETITION.
	The board shall order an election on the question of dissolving the
	district and transferring the district's assets and obligations to
	another political subdivision of the state if the board receives a
	petition requesting an election on that question. The petition
	must be signed by at least 15 percent of the district's registered
	voters.
	Sec. 7958.0603.  ELECTION ORDER. An order calling an
	election held under this subchapter must state:
	(1)  the nature of the election, including the
	proposition that is to appear on the ballot;
	(2)  the date of the election;
	(3)  the hours during which the polls will be open; and
	(4)  the location of the polling places.
	Sec. 7958.0604.  NOTICE OF DISSOLUTION ELECTION. (a) The
	board shall give notice of an election ordered under this
	subchapter by publishing a substantial copy of the election order
	in a newspaper with general circulation in the district once a week
	for two consecutive weeks.
	(b)  The first publication must appear not later than the
	30th day before the date set for the election.
	Sec. 7958.0605.  APPLICABILITY OF UNIFORM ELECTION DATES.
	Section 41.001, Election Code, does not apply to an election held
	under this subchapter.
	Sec. 7958.0606.  ELECTION RESULTS. (a) If a majority of the
	votes in an election held under this subchapter favor dissolution,
	the board shall order that the district be dissolved.
	(b)  If a majority of the votes in an election held under this
	subchapter do not favor dissolution, the board shall continue to
	administer the district, and another election on the question of
	dissolution may not be held before the first anniversary of the date
	of the most recent election held on the question of dissolving the
	district.
	Sec. 7958.0607.  TRANSFER OF ASSETS, OBLIGATIONS, AND
	PROVISION OF SERVICES. (a) As soon as practicable following the
	issuance of an order under Section 7958.0606(a), the board shall:
	(1)  begin the process of transferring the district's
	assets and obligations to one or more political subdivisions in a
	fair and equitable manner; and
	(2)  administer the property, assets, and debts of the
	district until all money has been disposed of and all district debts
	have been paid or settled.
	(b)  If the district provides services, the board or a
	receiver appointed under Section 7958.0608 shall make arrangements
	for the uninterrupted provision of services.
	Sec. 7958.0608.  RECEIVER. If the executive director of the
	commission determines that the board has failed to make substantial
	progress in transferring the district's assets and obligations to
	one or more political subdivisions in a fair and equitable manner,
	the executive director shall appoint a receiver for the district.
	Sec. 7958.0609.  REPORT; DISSOLUTION ORDER. (a) After the
	district has transferred all of the district's assets and
	obligations and has arranged for the continued provision of
	services provided by the district, if applicable, the board shall
	file a written report with the commission summarizing the board's
	actions in dissolving the district.
	(b)  Not later than the 10th day after the date the
	commission receives the report and determines that the requirements
	of this subchapter have been fulfilled, the commission shall enter
	an order dissolving the district.
	SUBCHAPTER G. ANNEXATION OF LAND
	Sec. 7958.0701.  GENERAL ANNEXATION PROVISIONS. (a) Except
	as provided by this section, Subchapter J, Chapter 49, Water Code,
	applies to the district.
	(b)  In addition to the requirements of Section 49.302(b),
	Water Code, the petition must also be signed by a majority of
	registered voters in the defined area to be annexed.
	Sec. 7958.0702.  RETALIATION FOR ANNEXATION DISAPPROVAL
	PROHIBITED. (a) The disapproval of the proposed annexation of an
	area by the district does not affect any existing legal obligation
	of the district to continue to provide services in the area,
	including wastewater services.
	(b)  The district may not initiate a rate proceeding solely
	because of the disapproval of a proposed annexation of an area.
	SECTION 2.  The Rose City Municipal Utility District
	initially includes all the territory contained in the following
	area:
	BEING a 21,118 acre tract of land situated in Smith County, Texas,
	said 21,118 acre tract being more completely described by metes and
	bounds as follows:
	BEGINNING at the intersection of the centerline of State Highway
	No. 155 with State Highway 57 (West Grande Boulevard);
	THENCE Easterly with the centerline of West Grande Boulevard to its
	intersection with F.M. 2493 (Old Jacksonville Highway);
	THENCE Southwesterly with the centerline of F.M. 2493 (Old
	Jacksonville Highway) to its intersection with Three Lakes Parkway;
	THENCE Southeasterly with the centerline of Three Lakes Parkway to
	its intersection with Dueling Oaks;
	THENCE Easterly with the centerline of Dueling Oaks to its
	intersection with Hollytree Drive;
	THENCE Southwesterly with the centerline of Hollytree Drive to its
	intersection with Maple Lane;
	THENCE Southerly with the centerline of Maple Lane to its
	intersection with West Cumberland Road;
	THENCE Easterly with the centerline of West Cumberland Road to its
	intersection with U.S. Highway 69 (South Broadway Ave.);
	THENCE Southerly with the centerline of U.S. Highway 69 (South
	Broadway Ave.) to its intersection with Loop 49;
	THENCE Northeasterly with the centerline of Loop 49 to its
	intersection with F.M. 756 (South Paluxy Drive);
	THENCE Southeasterly with the centerline of F.M. 756 (South Paluxy
	Drive) to its intersection with F.M. 346;
	THENCE Southwesterly with the centerline of F.M. 346 to its
	intersection with County Road 15;
	THENCE Southerly with the centerline of County Road 15 to its
	intersection with County Road 129;
	THENCE Northeasterly with the centerline of County Road 129 to its
	intersection with County Road 112;
	THENCE with the centerline of County Road 112 to its intersection
	with County Road 113;
	THENCE with the centerline of County Road 113 to its intersection
	with County Road 152;
	THENCE Southwesterly with the centerline of County Road 152 to its
	intersection with U.S. Highway No. 69;
	THENCE Southeasterly with the centerline of U.S. Highway No. 69 to
	its intersection with the South boundary line of Liberty Utilities
	(Woodmark) CCN 20679 as shown by digital map on 3-08-2019 per the
	Public Utility Commission of Texas website, same being on the East
	boundary line of the City of Bullard, Texas, Sewer CCN 20903 as
	shown by digital map on 3-08-2019 per the Public Utility Commission
	of Texas website;
	THENCE Southwesterly with said East boundary line of Bullard, Texas
	CCN 20903 and South boundary line of Liberty Utilities (Woodmark)
	CCN 20679 to its intersection with Tyler and Bullard ETJ Agreement
	Boundary;
	THENCE South 87° 24 min 9 sec West with a distance of 228.46 ft;
	THENCE South 87° 15 min 49 sec West with a distance of 1,411.05 ft;
	THENCE North 3° 23 min 18 sec West with a distance of 116.67 ft;
	THENCE South 57°
	12 min 37 sec West with a distance of 519.18 ft to
	its intersection with F. M. 2493;
	THENCE Northwesterly with the centerline of F.M. 2493 to an ell
	corner in the West line of said CCN 20679;
	THENCE West continuing with the West boundary line of said CCN 20679
	to its intersection with the centerline of County Road 173 and being
	the Westerly Southwest corner of said CCN 20679;
	THENCE Northerly with the centerline of County Road 173 to its
	intersection with the centerline of County Road 175;
	THENCE Westerly with the centerline of County Road 175 to its
	intersection with the centerline of F.M. 346;
	THENCE Westerly with the centerline of F.M. 346 to its intersection
	with the centerline of County Road 185 (Oak Hollow Road);
	THENCE Westerly with the centerline of County Road 185 to its
	intersection with the centerline of County Road 178 (Old Palestine
	Highway);
	THENCE Northeasterly with the centerline of County Road 178 (Old
	Palestine Highway) to its intersection with the centerline of
	County Road 168 (Saline Creek Road);
	THENCE Northeasterly with the centerline of County Road 168 to its
	intersection with the centerline of County Road 178 (Jonestown
	Road);
	THENCE North with the centerline of County Road 178 to its
	intersection with the centerline of County Road 192 (Old Noonday
	Road);
	THENCE Northeasterly with the centerline of County Road 192 to its
	intersection with the centerline of County Road 193 (Taylor Road);
	THENCE Northwesterly with the centerline of County Road 193 to its
	intersection with the centerline of State Highway No. 155;
	THENCE Northeasterly with the centerline of State Highway No. 155
	to the place of beginning containing 21,118 acres of land, plus or
	minus.
	"This document was prepared under 22 TAC §663.21, does not reflect
	the results of an on the ground survey, and is not to be used to
	convey or establish interests in real property except those rights
	and interests implied or established by the creation or
	reconfiguration of the boundary of the political subdivision for
	which it was prepared."
	The acreage shown were calculated from aerial photography and are
	an approximation only.
	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 7958.0304, 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 7958, Special
	District Local Laws Code, as added by Section 1 of this Act, is
	amended by adding Section 7958.0304 to read as follows:
	Sec. 7958.0304.  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 September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 4749 was passed by the House on May
	10, 2019, by the following vote:  Yeas 123, Nays 18, 2 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 4749 on May 23, 2019, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 4749 on May 25, 2019, by the following vote:  Yeas 75,
	Nays 62, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4749 was passed by the Senate, with
	amendments, on May 21, 2019, by the following vote:  Yeas 29, Nays
	2; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	4749 on May 25, 2019, by the following vote:  Yeas 28, Nays 2.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor