Bill Text: TX HB3605 | 2015-2016 | 84th Legislature | Enrolled

---

Bill Title: Relating to the creation of the Joshua Farms Municipal Management District No. 2; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments or fees.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Enrolled - Dead) 2015-06-19 - Effective on 9/1/15 [HB3605 Detail]

Download: Texas-2015-HB3605-Enrolled.html

---

H.B. No. 3605

AN ACT
relating to the creation of the Joshua Farms Municipal Management
District No. 2; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
assessments or fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3929 to read as follows:
CHAPTER 3929. JOSHUA FARMS MUNICIPAL MANAGEMENT DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3929.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Cleburne, Texas.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "County" means Johnson County, Texas.
(5) "Director" means a board member.
(6) "District" means the Joshua Farms Municipal
Management District No. 2.
Sec. 3929.002. CREATION AND NATURE OF DISTRICT. The Joshua
Farms Municipal Management District No. 2 is a special district
created under Sections 52 and 52-a, Article III, and Section 59,
Article XVI, Texas Constitution.
Sec. 3929.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing the city and
other political subdivisions to contract with the district, the
legislature has established a program to accomplish the public
purposes set out in Section 52-a, Article III, Texas Constitution.
(b) 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 in the district.
Sec. 3929.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The district is created to accomplish the purposes of a
municipal management district as provided by general law and
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution.
(d) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(e) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(f) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
Sec. 3929.005. 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 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 contract;
(3) authority to borrow money or issue bonds or other
obligations described by Section 3929.253 or to pay the principal
and interest of the bonds or other obligations;
(4) right to impose or collect an assessment or
collect other revenue; or
(5) legality or operation.
Sec. 3929.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
(a) All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code; or
(3) an enterprise zone created under Chapter 2303,
Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city and the board of directors of
the zone, by contract with the district, may grant money deposited
in the tax increment fund to the district to be used by the district
for:
(1) the purposes permitted for money granted to a
corporation under Section 380.002(b), Local Government Code; and
(2) any other district purpose, including the right to
pledge the money as security for any bonds or other obligations
issued by the district under Section 3929.253.
(c) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city may determine the percentage
of the property in the zone that may be used for residential
purposes and is not subject to the limitations provided by Section
311.006, Tax Code.
Sec. 3929.007. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. On receipt of a petition signed by the owners of a
majority of the acreage and the assessed value of real property in
the district according to the most recent certified tax appraisal
roll for the county, the initial 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. 3929.008. DEVELOPMENT AND OPERATING AGREEMENT
EXECUTION REQUIRED. (a) The initial directors may not hold an
election under Section 3929.007 until the city has entered into a
development and operating agreement under Section 3929.156.
(b) The district is dissolved and this chapter expires March
1, 2018, if the development and operating agreement is not entered
into before that date.
Sec. 3929.009. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICT LAW. (a) Except as provided by this chapter, Chapter 375,
Local Government Code, including Subchapters E and F, applies to
the district.
(b) The following provisions of Chapter 375, Local
Government Code, do not apply to the district:
(1) Sections 375.164 and 375.262; and
(2) Subchapters B and O.
Sec. 3929.010. CONSTRUCTION OF CHAPTER. This chapter shall
be construed in conformity with the findings and purposes stated in
this chapter.
Sec. 3929.011. CONCURRENCE ON ADDITIONAL POWERS. If the
legislature grants the district a power that is in addition to the
powers approved by the initial resolution of the governing body of
the city consenting to the creation of the district, the district
may not exercise that power unless the governing body of the city
consents to that change by ordinance or resolution.
Sec. 3929.012. CITY CONSENT TO CREATION OF DISTRICT. The
city's consent to the creation of the district is not subject to the
limitations on the conditions or other restrictions the city may
place on its consent under Section 42.042, Local Government Code.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3929.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 3929.054, directors serve
staggered four-year terms, with two or three directors' terms
expiring June 1 of each odd-numbered year.
Sec. 3929.052. BOARD MEETINGS. The board shall hold
meetings at a place accessible to the public.
Sec. 3929.053. REMOVAL OF DIRECTORS. (a) The board may
remove a director by unanimous vote of the other directors if the
director has missed at least half of the meetings scheduled during
the preceding 12 months.
(b) A director removed under this section may file a written
appeal with the commission not later than the 30th day after the
date the director receives written notice of the board action. The
commission may reinstate the director if the commission finds that
the removal was unwarranted under the circumstances after
considering the reasons for the absences, the time and place of the
meetings, the business conducted at the meetings missed, and any
other relevant circumstances.
Sec. 3929.054. INITIAL DIRECTORS. (a) The initial board
consists of:
Pos. No. Name of Director
1 David Rex
2 Barb Levis
3 John Tatum
4 Charles Collie
5 Stephanie Fine
(b) Initial directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 3929.007; 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 3929.007 and the terms of the initial directors have
expired, successor initial 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 3929.007; 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
according to the most recent certified tax appraisal rolls for the
county may submit a petition to the commission requesting that the
commission appoint as successor initial directors the five persons
named in the petition. The commission shall appoint as successor
initial directors the five persons named in the petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3929.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3929.102. IMPROVEMENT PROJECTS. The district may
provide, or it may enter into contracts with a governmental or
private entity to provide, the improvement projects described by
Subchapter C-1 or activities in support of or incidental to those
projects.
Sec. 3929.103. WATER DISTRICT POWERS. The district has the
powers provided by the general laws relating to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code.
Sec. 3929.104. 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. 3929.105. 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. 3929.106. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 3929.107. CONTRACT POWERS. The district may contract
with a governmental or private entity, on terms determined by the
board, to carry out a power or duty authorized by this chapter or to
accomplish a purpose for which the district is created.
Sec. 3929.108. AD VALOREM TAXATION. The district may not
impose an ad valorem tax.
Sec. 3929.109. LIMITATIONS ON EMERGENCY SERVICES POWERS.
The district may not establish, operate, maintain, or finance a
police or fire department without the consent of the city by
ordinance or resolution.
Sec. 3929.110. ADDING OR REMOVING TERRITORY. As provided
by Subchapter J, Chapter 49, Water Code, the board may add territory
inside the extraterritorial jurisdiction of the city to the
district or remove territory inside the extraterritorial
jurisdiction of the city from the district, except that:
(1) the addition or removal of the territory must be
approved by the city;
(2) the addition or removal may not occur without
petition by the owners of the territory being added or removed; and
(3) territory may not be removed from the district if
bonds or other obligations of the district payable wholly or partly
from assessments assessed on the territory are outstanding.
Sec. 3929.111. NO TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
Sec. 3929.112. EMINENT DOMAIN. (a) Section 375.094, Local
Government Code, does not apply to the district.
(b) Except as provided by Subsection (c), and subject to the
consent of the city by ordinance or resolution, the district may
exercise the right of eminent domain in the manner provided by
Section 49.222, Water Code. The city may not unreasonably withhold
consent under this section.
(c) 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 3929.104; or
(2) a recreational facility as defined by Section
49.462, Water Code.
Sec. 3929.113. ENFORCEMENT OF REAL PROPERTY RESTRICTIONS.
The district may enforce a real property restriction in the manner
provided by Section 54.237, Water Code, if, in the reasonable
judgment of the board, the enforcement of the restriction is
necessary.
Sec. 3929.114. POWERS SUBJECT TO DEVELOPMENT AND OPERATING
AGREEMENT. In addition to the other limitations provided by this
chapter, the district's authority to exercise its powers is subject
to the terms of the development and operating agreement required
under Section 3929.156.
SUBCHAPTER C-1. IMPROVEMENT PROJECTS AND SERVICES
Sec. 3929.151. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service, including water, wastewater, drainage, and roadway
projects or services, using any money available to the district, or
contract with a governmental or private entity and reimburse that
entity for the provision, design, construction, acquisition,
improvement, relocation, operation, maintenance, or financing of
an improvement project, service, or cost, for the provision of
credit enhancement, or for any cost of operating or maintaining the
district or the issuance of district obligations authorized under
this chapter, Chapter 372 or 375, Local Government Code, or Chapter
49 or 54, Water Code.
Sec. 3929.152. BOARD DETERMINATION REQUIRED. The district
may not undertake an improvement project unless the board
determines the project is necessary to accomplish a public purpose
of the district.
Sec. 3929.153. LOCATION OF IMPROVEMENT PROJECT. An
improvement project may be located or provide service inside or
outside the district.
Sec. 3929.154. CITY REQUIREMENTS. An improvement project
in the district must comply with any applicable requirements of the
city, including codes and ordinances, unless specifically waived or
superseded by the development and operating agreement entered into
under Section 3929.156 or another agreement with the city.
Sec. 3929.155. IMPROVEMENT PROJECT AND SERVICE IN DEFINABLE
AREA; BENEFIT BASIS. The district may undertake an improvement
project or service that confers a special benefit on a definable
area in the district and levy and collect a special assessment on
benefited property in the district in accordance with:
(1) Chapter 372, Local Government Code; or
(2) Chapter 375, Local Government Code.
Sec. 3929.156. DEVELOPMENT AND OPERATING AGREEMENT
REQUIRED. (a) After the district's board is organized, but before
the district may undertake any improvement project, issue bonds,
levy assessments or fees, or borrow money, the district, the city,
and the owner of a majority of the assessed value of real property
in the district according to the most recent certified tax rolls of
the central appraisal district of the county must negotiate and
execute a mutually approved and accepted development and operating
agreement, including any limitations imposed by the city.
(b) An agreement authorized by this section is not effective
until its terms and execution are approved by the board, the
governing body of the city by ordinance or resolution, and the owner
described by Subsection (a).
SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3929.201. DIVISION OF DISTRICT; PREREQUISITES. (a)
Subject to Subsection (b), the district, including territory added
to the district under Section 3929.110, may be divided into two or
more new districts only if the district has no outstanding bonded
debt. Territory previously added to the district under Section
3929.110 may be included in a new district.
(b) If the board adds territory inside the extraterritorial
jurisdiction of the city or any other municipality to the district
under Section 3929.110, the district may be divided under
Subsection (a) only with the consent by ordinance or resolution of
the city and any other municipality whose extraterritorial
jurisdiction is included in the district.
Sec. 3929.202. LAW APPLICABLE TO NEW DISTRICT. This
chapter applies to any new district created by division of the
district, and a new district has all the powers and duties of the
district.
Sec. 3929.203. DIVISION PROCEDURES. (a) The board, on its
own motion or on receipt of a petition signed by an owner of real
property in the district, may adopt an order proposing to divide the
district.
(b) If the board decides to divide the district, the board
shall:
(1) set the terms of the division, including names for
the new districts and a plan for the payment or performance of any
outstanding district obligations;
(2) prepare a metes and bounds description for each
proposed district; and
(3) appoint initial directors for each new district.
Sec. 3929.204. NOTICE AND RECORDING OF ORDER. Not later
than the 30th day after the date of an order dividing the district,
the district shall:
(1) file the order with the commission; and
(2) record the order in the real property records of
the county.
Sec. 3929.205. CONTRACT AUTHORITY OF NEW DISTRICTS. (a)
Except as provided by Subsection (b), the new districts may
contract with each other for any matter the boards of the new
districts consider appropriate, including the joint construction
or financing of a utility or roadway improvement and the joint
financing of a maintenance obligation.
(b) The new districts may not contract with each other for
water and wastewater services. This subsection does not affect the
right to contract described by Subsection (a).
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3929.251. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of the district's money.
Sec. 3929.252. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may undertake and provide an improvement project or
service authorized by this chapter using any money available to the
district.
Sec. 3929.253. BORROWING MONEY; OBLIGATIONS. (a) Subject
to the terms of the development and operating agreement required
under Section 3929.156, the district may borrow money for a
district purpose, including the acquisition or construction of
improvement projects authorized by this chapter and the
reimbursement of a person who develops or owns an improvement
project authorized by this chapter, by issuing bonds, notes, time
warrants, or other obligations, or by entering into a contract or
other agreement payable wholly or partly from an assessment, a
contract payment, a grant, revenue from a zone created under
Chapter 311 or 312, Tax Code, other district revenue, or a
combination of these sources.
(b) An obligation described by Subsection (a):
(1) may bear interest at a rate determined by the
board; and
(2) may include a term or condition as determined by
the board.
(c) The board may issue an obligation under this section
without an election.
Sec. 3929.254. ASSESSMENTS. (a) Except as provided by
Subsection (b), the district may impose an assessment on property
in the district to pay for an obligation described by Section
3929.253 or an improvement project authorized by Section 3929.151
in the manner provided for:
(1) a district under Subchapters A, E, and F, Chapter
375, Local Government Code; or
(2) a municipality or county under Subchapter A,
Chapter 372, Local Government Code.
(b) The district may not impose an assessment on a
municipality, county, or other political subdivision.
Sec. 3929.255. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Sec. 3929.256. NO IMPACT FEES. The district may not impose
an impact fee.
Sec. 3929.257. COLLECTION OF ASSESSMENTS. The district may
contract as provided by Chapter 791, Government Code, with the
commissioners court of the county for the assessment and collection
of assessments imposed under this subchapter.
SUBCHAPTER F. DISSOLUTION
Sec. 3929.301. DISSOLUTION BY BOARD. The board may
dissolve the district in the manner provided by Section 375.261,
Local Government Code, subject to Section 375.264, Local Government
Code.
Sec. 3929.302. DISSOLUTION BY CITY. (a) The city may
dissolve the district by ordinance.
(b) The city may not dissolve the district until:
(1) the district's outstanding debt or contractual
obligations have been repaid or discharged; or
(2) the city agrees to succeed to the rights and
obligations of the district, including an obligation described by
Section 3929.304.
Sec. 3929.303. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
(a) If the dissolved district has bonds or other obligations
outstanding secured by and payable from assessments or other
revenue, the city succeeds to the rights and obligations of the
district regarding enforcement and collection of the assessments or
other revenue.
(b) The city shall have and exercise all district powers to
enforce and collect the assessments or other revenue to pay:
(1) the bonds or other obligations when due and
payable according to their terms; or
(2) revenue or assessment bonds or other obligations
issued by the city to refund the outstanding bonds or obligations of
the district.
Sec. 3929.304. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
After the city dissolves the district, the city assumes the
obligations of the district, including any contractual obligations
or bonds or other debt payable from assessments or other district
revenue.
(b) If the city dissolves the district, the board shall
transfer ownership of all district property to the city.
SECTION 2. The Joshua Farms Municipal Management District
No. 2 initially includes all the territory contained in the
following area:
BEING a tract of land situated in the B.B.B. & C.R.R. Co. Survey,
Abstract Number 103, the A.J. Tucker Survey, Abstract Number 833,
and the William P. King Survey, Abstract Number 489, Johnson
County, Texas and being a portion of that tract of land described by
deed Joshua Land Farm LLC., recorded in Instrument Number 22522,
County Records, Johnson County, Texas:
BEGINNING at the northwest corner of said Joshua Land Farm tract, in
the south right-of-way line of FM 917 (a 80 foot right-of-way);
THENCE N 89°58'32"E, 1768.76 feet with said south right-of-way;
THENCE S 01°19'08"E, 1991.93 feet;
THENCE N 89°05'57"E, 3989.06 feet;
THENCE N 89°16'48"E, 830.50 feet to the east line of said Joshua Land
Farm tract;
THENCE S 00°04'27"W, 1665.41 feet with said east line;
THENCE S 89°28'44"W, 3093.70 feet with said east line;
THENCE S 00°03'03"W, 1465.70 feet with said east line;
THENCE S 68°17'01"W, 1321.19 feet departing said east line;
THENCE N 56°14'59"W, 442.41 feet;
THENCE N 33°45'00"W, 3383.50 feet to the west line of said Joshua
Land Farm tract;
THENCE N 01°24'23"W, 2507.29 feet with said west line to the Point of
Beginning and containing 17,649,096 square feet or 405 acres of
land more or less.
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,
lieutenant governor, and 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 have been
fulfilled and accomplished.
SECTION 4. (a) Section 3929.112, 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 3929, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 3929.112 to read as follows:
Sec. 3929.112. 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, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3605 was passed by the House on May 8,
2015, by the following vote: Yeas 142, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3605 on May 29, 2015, by the following vote: Yeas 143, Nays 0,
3 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3605 was passed by the Senate, with
amendments, on May 27, 2015, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor