Legislative Blog

J.B. Williams, J.D.

Utility Districts Created

A Blog about 88th Legislature Laws

A Bit of Background

The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically 88th Legislature Laws as it relates to that topic.

Brief Summary of Texas

Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.

Summary of 88th Legislature Laws

The blogs here will discuss the laws passed by Congress and signed into law, as well as those, passed by Congress and approved by the voters to become law. There are a multitude of laws and each time I post blogs I will notate here the current effective date if it is different from prior blogs. I am currently posting bills that took effect immediately - those bills total 336. I am currently posting regarding larger bills, so each blog covers a single bill.

Blog Summary

This bill modifies the Local Government Code, Section 175.001. There are 4 utility districts created and 1 modified. These area all fairly limited by specifics at this time. It appears like these are being used to establish utility districts, revolving around water usage. My guess is they are established in rural areas where MUDS and such are created.

Utility Districts Created

Published: 2024-02-12

A township is defined her to mean a special district with territory that includes a census designated place. It expands those covered to include those employed as a firefighter, police officer, or emergency medical services provider by a township with a population of 110,000 or more. And those individuals are included as those entitled to receive retirement benefits. Previously you have to retire from a county employment position in a county of 75,000 or more, an appraisal district in a county of 75,000 or more, a municipality with a population of 25,000 ore more, or a firefighter or emergency medical services provider in an emergency services district with a population of 150,000 ore more.

Denton County Municipal Management District No 2 - called District

The following are created:

1. Deer Creek Ranch Municipal Utility District No. 1;
2. Jarrell Estates Municipal Utility District No 1;
3. Montgomery County Municipal Utility District No. 236;
4. Williamson County Municipal Utility District No. 49;
5. Williamson County Municipal Utility District No. 51;

'The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare.' It will be government by a five member board of directors, whom will be elected to serve with staggered terms of four years. The election will follow the Water Code, Chapter 49, Subchapter D. The directors will be paid an amount not to exceed $150 per board meeting. The total amount of compensation may not exceed $7,200 annually. The directos are initially chosen from the individual owner(s) that have a majority of the assessed value of the real property in the district.

The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance any improvement project or service authorized. The board may create a nonprofit corporation to assist and act for the district. The nonprofit would be considered a local government corporation. The included services

1. law enforcement services provided by a qualified party for a fee;
2. they may joint a charitable or nonprofit organization that performs services consistent with the district purpose;
3. they may engage in activities that accomplish the district economic development purpose;
4. they may provide for the administration of program(s) that promote state or local economic development, including making loans and grants of public money; and provide district personnel and services;
5. they may create economic development programs and exercise economic development powers provided to municipalities under the Local Government Code, Chapter 380 and Chapter 1509, Subchapter A.
6. they may acquire, lease, construct, develop, own, operate, and maintain parking facilities; this includes lots, garages, parking terminals, or other structures for parking motor vehicles off the streets;
7. they may add or exclude land as provided in the Water Code, Chapter 54, Subchapter J or Subchapter H

This specific district, Deer Creek Ranch Municipal Utility District No. 1. and Jarrell Estates Municipal Utility District No 1, are created for the purpose of:

1. a municipal utility district under Texas Constitution, Article XVI, Section 59; and
2. the construction, acquisition, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

This specific district, Montgomery County Municipal Utility District No. 236 and Williamson County Municipal Utility District No. 49, are created as a municipal utility district under Texas Constitution, Article XVI, Section 59.

Williamson County Municipal Utility District No. 51 shall provide annual imposition of continuing annual ad valorem tax. It sounds like this district is finishing out it's existence and will eventually be dissolved.

For Deer Creek Ranch Municipal Utility District No. 1. and Jarrell Estates Municipal Utility District No 1 and Montgomery County Municipal Utility District No. 236 and Williamson County Municipal Utility District No. 49, the section on eminent domain is not in effect it did not receive 2/3 vote from the members of each house. If it had, then the district may exercise eminent domain as for the Water Code, Section 49.222. This permits them to use eminent domain to acquire property for:

1. water supply corporation,
2. necessary for water, sanitary sewer, storm drainage, or flood drainage or
3. control purposes or for any other of its projects or purposes, and
4. may elect to condemn either the fee simple title or a lesser property interest.

I understood the water, sanitary sewer, storm drainage and flood drainage. Mostly because the reality is they could do those without, for the most part, a complete taking of property. But then it says for any of its projects or purposes, which honestly seem extremely broad. I mean they include building parking garages/parking lots. To be fair, this isn't a new thing, it's already part of the code and many 'districts' already have this power.

Districts may divide into two or more districts only if there is no outstanding bonded debt and it is not imposing ad valorem taxes. Each new district created would have the same powers as this district. The district must hold an election to obtain voter approval before the district may impost ad valorem tax. If approved by voters, the district may impose operation and maintenance tax on taxable property in the district to:

1. maintain and operate the district;
2. construct or acquire improvements; or
3. provide a service

The district may borrow money on terms the board agrees on. They may issue bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract payments, grants, or other district money. The board may issue bonds, without election, if they are secured by:

1. revenue other than ad valorem taxes; or
2. contract payments, with certain requirements.

No bonds, backed by ad valorem taxes, may be issued without the consent of each municipality whose property is within the district. Once the first approval is given, further bonds may be issued as per the general rules for bonds backed by ad valorem taxes.

The district must be dissolved upon written petition of at least 2/3 of the assessed value of the property or 2/3 of the surface area of the district. It may not be dissolved if:

1. there is any outstanding bonded indebtedness;
2. has any contractual obligation;
3. owns, operates, or maintains public works, facilities, or improvements unless another person is contracted to do that.

 

J.B. Williams, J.D.

4,312 federal laws were passed from 1995 through December 2016.
Along with 88,819 federal rules and regulations.