Bill Text: TX HB4590 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the creation of the TRR 243 Municipal Management District; providing authority to issue bonds and impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB4590 Detail]

Download: Texas-2021-HB4590-Comm_Sub.html

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By: Sanford (Senate Sponsor - Springer) H.B. No. 4590
(In the Senate - Received from the House May 17, 2021;
May 17, 2021, read first time and referred to Committee on Local
Government; May 22, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 7, Nays 0;
May 22, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4590 By: Springer

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the TRR 243 Municipal Management
District; providing authority to issue bonds and impose
assessments, fees, and taxes.
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 3793 to read as follows:
CHAPTER 3793. TRR 243 MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3793.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Celina, Texas.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "Director" means a board member.
(5) "District" means the TRR 243 Municipal Management
District.
Sec. 3793.0102. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution.
Sec. 3793.0103. 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.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city from providing the level of
services provided to the area in the district as of the effective
date of the Act enacting this chapter. The district is created to
supplement and not to supplant the city services provided in the
district.
Sec. 3793.0104. 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;
(3) develop or expand transportation and commerce; and
(4) provide quality residential housing.
(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.
(g) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3793.0105. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under other
law.
(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 3793.0501 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. 3793.0106. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3793.0107. CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Sec. 3793.0108. CONFLICTS OF LAW. This chapter prevails
over any provision of Chapter 375, Local Government Code, that is in
conflict or inconsistent with this chapter.
Sec. 3793.0109. CONSENT OF MUNICIPALITY AND DEVELOPMENT
AGREEMENT REQUIRED. (a) The board may not hold an election to
authorize the issuance of bonds until:
(1) the governing body of the city by ordinance or
resolution consents to the creation of the district and to the
inclusion of land in the district; and
(2) the governing body of the city has entered into a
development agreement with the owner of a majority of the land in
the district.
(b) The city's consent must be granted in the manner
provided by Section 54.016, Water Code, for including land within
the corporate limits or extraterritorial jurisdiction of a city.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3793.0201. GOVERNING BODY; TERMS. The district is
governed by a board of five directors who serve staggered terms of
four years, with two or three directors' terms expiring June 1 of
each even-numbered year. One director is appointed by the city, and
four directors are appointed by the commission as provided by
Sections 3793.0202 and 3793.0203, respectively.
Sec. 3793.0202. APPOINTMENT AND REMOVAL OF DIRECTOR
APPOINTED BY CITY. (a) The governing body of the city shall
appoint one director who must be:
(1) at least 18 years of age; and
(2) a resident of the city.
(b) At any time the governing body of the city may remove the
director appointed by the city and appoint a director to serve the
remainder of the removed director's term.
Sec. 3793.0203. APPOINTMENT BY COMMISSION. (a) Before the
term of a director other than a director appointed under Section
3793.0202 expires, the board shall recommend to the commission the
appropriate number of persons to serve as successor directors. The
commission shall appoint as directors the persons recommended by
the board.
(b) A person recommended by the board under Subsection (a)
must be:
(1) at least 18 years of age;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that
owns property in the district; or
(5) an agent, employee, or tenant of a person
described by Subdivision (2), (3), or (4).
Sec. 3793.0204. VACANCY. If a vacancy occurs on the board,
the remaining directors shall appoint a director for the remainder
of the unexpired term.
Sec. 3793.0205. DIRECTOR'S OATH OR AFFIRMATION. (a) A
director shall file the director's oath or affirmation of office
with the district, and the district shall retain the oath or
affirmation in the district records.
(b) A director shall file a copy of the director's oath or
affirmation with the secretary of the city.
Sec. 3793.0206. OFFICERS. The board shall elect from among
the directors a chair, a vice chair, and a secretary. The offices
of chair and secretary may not be held by the same person.
Sec. 3793.0207. COMPENSATION; EXPENSES. (a) The district
may compensate each director in an amount not to exceed $150 for
each board meeting. The total amount of compensation a director may
receive each year may not exceed $7,200.
(b) A director is entitled to reimbursement for necessary
and reasonable expenses incurred in carrying out the duties and
responsibilities of the board.
Sec. 3793.0208. LIABILITY INSURANCE. The district may
obtain and pay for comprehensive general liability insurance
coverage from a commercial insurance company or other source that
protects and insures a director against personal liability and from
all claims relating to:
(1) actions taken by the director in the director's
capacity as a member of the board;
(2) actions and activities taken by the district; or
(3) the actions of others acting on behalf of the
district.
Sec. 3793.0209. NO EXECUTIVE COMMITTEE. The board may not
create an executive committee to exercise the powers of the board.
Sec. 3793.0210. INITIAL DIRECTORS. (a) On or after
September 1, 2021, 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 initial directors the four persons named in the petition. The
commission shall appoint as initial directors the four persons
named in the petition.
(b) The governing body of the city shall appoint one initial
director.
(c) The initial directors shall determine by lot which three
positions expire June 1, 2023, and which two positions expire June
1, 2025.
(d) This section expires September 1, 2023.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3793.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3793.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
Subject to Subsection (b), the district may provide, design,
construct, acquire, improve, relocate, operate, maintain, or
finance an improvement project or service using money available to
the district, or contract with a governmental or private entity to
provide, design, construct, acquire, improve, relocate, operate,
maintain, or finance an improvement project or service authorized
under this chapter or Chapter 375, Local Government Code.
(b) The district may not construct or finance an improvement
project, other than a water, sewer, or drainage facility or road,
unless the governing body of the city by ordinance or resolution
consents to the construction or financing.
(c) The district may issue bonds, notes, or other
obligations to maintain or repair an existing improvement project
only if the governing body of the city by ordinance or resolution
consents to the issuance.
Sec. 3793.0303. LOCATION OF IMPROVEMENT PROJECT. A
district improvement project may be located inside or outside of
the district.
Sec. 3793.0304. OWNERSHIP OF IMPROVEMENT PROJECTS. (a)
Before a district improvement project may be put into operation,
the district must transfer ownership of the project to the city.
(b) The transfer of ownership is complete on the city's
acceptance of ownership.
Sec. 3793.0305. RETAIL WATER AND SEWER SERVICES PROHIBITED.
The district may not provide retail water or sewer services.
Sec. 3793.0306. ADDING OR REMOVING TERRITORY. (a) Subject
to Subsection (b), the board may add or remove territory as provided
by Subchapter J, Chapter 49, Water Code.
(b) The district may add territory as described by
Subsection (a) only if the governing body of the city by ordinance
or resolution consents to the addition.
Sec. 3793.0307. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3793.0401. 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. 3793.0402. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, or finance an improvement
project or service authorized by this chapter or Chapter 375, Local
Government Code, using any money available to the district.
Sec. 3793.0403. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of notice.
Sec. 3793.0404. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district are:
(1) a first and prior lien against the property
assessed;
(2) superior to any other lien or claim other than a
lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) the personal liability of and a charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
(e) The district may not impose an assessment on a
municipality, county, or other political subdivision.
Sec. 3793.0405. NOTICE OF ASSESSMENTS. Annually, the board
shall file with the secretary of the city written notice that
specifies the assessments the district will impose in the
district's next fiscal year in sufficient clarity to describe the
assessments for the operation and maintenance of the district and
the assessments for the payment of debt service of obligations
issued or incurred by the district.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3793.0501. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds, notes, or other obligations payable
wholly or partly from ad valorem taxes or assessments in the manner
provided by Subchapter J, Chapter 375, Local Government Code.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
(c) In addition to the sources of money described by
Subchapter J, Chapter 375, Local Government Code, district bonds
may be secured and made payable wholly or partly by a pledge of any
part of the money the district receives from improvement revenue or
from any other source.
(d) Not later than the 30th day before the date the district
holds a bond sale, the district shall provide the governing body of
the city written notice of the sale.
SUBCHAPTER F. DISSOLUTION
Sec. 3793.0601. DISSOLUTION BY CITY ORDINANCE. (a) The
governing body of the city may dissolve the district by ordinance.
(b) The governing body may not dissolve the district until:
(1) water, sanitary, sewer, and drainage improvements
and roads have been constructed to serve at least 90 percent of the
developable territory of the district; and
(2) the district has reimbursed each party that has an
agreement with the district for all costs advanced to or on behalf
of the district.
(c) Until the district is dissolved, the district is
responsible for all bonds and other obligations of the district.
Sec. 3793.0602. 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, other than revenue from ad valorem taxes, the city
shall succeed 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) special revenue or assessment bonds or other
obligations issued by the city to refund the outstanding bonds or
obligations.
Sec. 3793.0603. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
After the city dissolves the district, the city assumes, subject to
the appropriation and availability of funds, the obligations of the
district, including any 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 TRR 243 Municipal Management District
initially includes all the territory contained in the following
area:
BEING that certain tract of land situated in the Collin County
School Land Survey, Abstract No. 168, Collin County, Texas, and
being all of that certain called 243.820 acre tract of land as
conveyed to Laura Latham Shinker, Elizabeth Brent and David Brent,
as recorded in Volume 967, Page 705 of the Deed Records of Collin
County, Texas, and also being all of that certain called 243.859
acre tract of land as conveyed to Godwin Family Investments, Ltd.,
by deed recorded in Volume 5634, Page 3372, said Deed Records, and
being more particularly described by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod found for the southeast corner of
said Godwin Family Investments tract, same being the southwest
corner of that certain tract of land to Carol J. King or Julia King
Needum, and their Successors, as Trustee of the King Family Trust,
as recorded in Instrument no. 2012102200134910, Official Public
Records, Collin County, Texas, same being in the north right-of-way
line of F.M. Highway 428 (a 105' public right-of-way at this point);
THENCE Sough 89 deg. 59 min. 43 sec. West, along the common line of
said Godwin Family Investments tract, and the north right-of-way
line of said F. M. Highway No. 428, a distance of 2602.61 feet to a
1/2 inch iron pipe found for the most southerly southwest corner of
said Godwin Family Investments tract;
THENCE North 45 deg. 11 min. 54 sec. West, continuing along the
common line of said Godwin Family Investments tract, and the north
right-of-way line of said F. M. Highway 428, a distance of 42.50
feet to a point;
THENCE South 89 deg. 59 min. 06 sec. West, continuing along the
common line of said Godwin Family Investments tract, and the north
right-of-way line of said F. M. Highway No. 428, a distance of 17.50
feet to a 1/2 inch iron rod found in the approximate center of
County Road No. 54 (a gravel paved prescriptive right-of-way);
THENCE North 00 deg. 02 min. 21 sec. West, along the west line of
said Godwin Family Investments tract, and generally along the
centerline of said County Road No. 54, a distance of 3965.31 feet to
a 3/8 inch rod found for the northwest corner of said Godwin Family
Investments tract, same being the southwest corner of that certain
tract of land to Michael C. Hollifield and wife, Deborah Baker
Hollifield, husband and wife, by deed recorded in Volume 5696, Page
1982, aforesaid Deed Records;
THENCE South 89 deg. 57 min. 51 sec. East, along the common line of
said Godwin Family Investments tract, and said Hollifield tract,
passing the southeast corner of said Hollifield tract, same being
the southwest corner of that certain tract of land to the Pollard
Family Living Trust, by deed recorded in County Clerk's File
No. 20120608000680240, aforesaid Official Public Records, and
continuing along the common line of said Godwin Family Investments
tract, and said Pollard tract, a total distance of 2669.06 feet to a
3/4 inch iron rod found for the northeast corner of said Godwin
Family Investments tract, same being the southeast corner of said
Pollard tract, same being in the west line of that certain tract of
land to Douglas J. Barker and wife, Saundra Barker, by deed recorded
in Volume 1159, Page 423, said Deed Records;
THENCE South 00 deg. 14 min. 32 sec. West, along common line of said
Godwin Family Investments tract, and said Pollard tract, passing
the southwest corner of said Pollard tract, same being the most
northerly northwest corner of that certain tract of land to Old
Celina, Ltd., by deed recorded in Volume 5208, Page 3376, said Deed
Records, and continuing along the common line of said Godwin Family
Investments tract, and said Old Celina tract, a total distance of
1400.08 feet to a Bois d' Arc Fence found for the most westerly
southwest corner of said Old Celina tract, same being the northwest
corner of aforesaid King tract;
THENCE South 00 deg. 13 min. 28 sec. West, along the common line of
said Godwin Family Investments tract, and said King tract, a
distance of 2593.32 feet to the POINT OF BEGINNING and containing
243.846 acres of computed 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. This Act takes effect September 1, 2021.
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