H.B. No. 5411

	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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 5411 was passed by the House on May
	12, 2023, by the following vote:  Yeas 103, Nays 37, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 5411 was passed by the Senate on May
	24, 2023, by the following vote:  Yeas 28, Nays 3.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor