Bill Text: TX HB4596 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the creation of the Heritage Ranch Municipal Utility District No. 1 of Grayson County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-05-14 - Laid on the table subject to call [HB4596 Detail]

Download: Texas-2021-HB4596-Introduced.html

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87R13521 MP-F
By: Smith H.B. No. 4596

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Heritage Ranch Municipal Utility
District No. 1 of Grayson County; granting a limited power of
eminent domain; 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 7920A to read as follows:
CHAPTER 7920A. HERITAGE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF
GRAYSON COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7920A.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 Heritage Ranch Municipal
Utility District No. 1 of Grayson County.
Sec. 7920A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7920A.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. 7920A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7920A.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. 7920A.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:
(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.
Sec. 7920A.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;
(3) right to impose a tax; or
(4) legality or operation.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7920A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7920A.0202, directors
serve staggered four-year terms.
Sec. 7920A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Mike Mayberry;
(2) Daniel Worrell;
(3) Russell Maine;
(4) Chris Colombe; and
(5) Rick Ellis.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7920A.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 7920A.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 7920A.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. 7920A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7920A.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. 7920A.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. 7920A.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. 7920A.0305. 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. 7920A.0306. DIVISION OF DISTRICT. (a) The district
may be divided into two or more new districts only if the district:
(1) has no outstanding bonded debt; and
(2) is not imposing ad valorem taxes.
(b) 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.
(c) 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 area described by Section 2 of the Act enacting this
chapter.
(d) 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.
(e) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
7920A.0103 to confirm the district's creation.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between the new districts.
(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) A new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 7920A.0103. If the voters of a new district do not confirm
the creation of the new district, the assets, obligations,
territory, and governance of the new district revert to the
original district.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(j) 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.
(k) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
7920A.0104 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. GENERAL FINANCIAL PROVISIONS
Sec. 7920A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
The district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section
7920A.0403.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose an ad valorem tax or issue bonds
payable from ad valorem taxes.
(c) 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.
Sec. 7920A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7920A.0401, the
district may impose an operation and maintenance tax on taxable
property in the district in accordance with Section 49.107, Water
Code.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Sec. 7920A.0403. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7920A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations
payable wholly or partly from ad valorem taxes, impact fees,
revenue, contract payments, grants, or other district money, or any
combination of those sources, to pay for any authorized district
purpose.
Sec. 7920A.0502. 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.
Sec. 7920A.0503. BONDS FOR ROAD PROJECTS. 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.
SECTION 2. The Heritage Ranch Municipal Utility District
No. 1 of Grayson County initially includes all the territory
contained in the following area:
FIELD NOTES
173.916 Acres
SITUATED in the County of Grayson, State of Texas, and being a
part of the Uriah Burns Survey, Abstract No. 121, and John Jennings
Survey, Abstract No. 647, and being part of the 184.50 acre tract of
land conveyed by Warranty Deed with Vendor's Lien from John H.
Becker, Jr., Trustee, and Amy H. Fennell, Co-Trustee of the Hugh L.
Head, Jr., Revocable Trust, to TPJ Properties, LTD, on February 15,
2002, recorded in Volume 3203, Page 464, Official Public Records,
Grayson County, Texas, and being more particularly described by
metes and bounds as follows, to-wit:
BEGINNING at a spike nail found in or near the center of
Plainview Road, an Ell corner of said Burns Survey, the Southwest
corner of the Alexander and Richards Survey, Abstract No. 42, the
Northwest comer of said TPJ 184.50 ac., the East line of Heritage
Ranch Land Holdings, LTD 254.489 acre tract of land, recorded in
Instrument No. 2020-19193, said Official Public Records, Grayson
County, Texas, the Southwest corner of Astoria Homes, LLC 100.832
acre tract of land (Tract I), recorded in Instrument
No. 2020-30762, said Official Public Records, Grayson County,
Texas, the Northwest comer of the herein described tract;
THENCE South 88 deg. 00 min. 43 sec. East, with the North
lines of both said Burns Survey and TPJ 184.50 ac., the South lines
of both said Richards Survey and Astoria 100.832 ac., a distance of
1,495.81 ft. to a point at the Northwest comer of BMT Global, LLC
37.08 acre tract of land (Tract Two), recorded in Instrument
No. 2018-12534, said Official Public Records, Grayson County,
Texas, an Ell corner of said Burns Survey, the South line of said
Richards Survey, the Northwest corner of said Jennings Survey, the
most Northerly Northeast comer of both said TPJ 184.50 ac. and the
herein described tract;
THENCE South 01 deg. 25 min. 51 sec. West, with East lines of
both said Burns Survey and TPJ 184.50 ac., the West line of both
said Jennings Survey and BMT 37.08 ac., a distance of 1,687.83 ft.
to a 1/2 inch rebar found on the East line of said Burns Survey, the
West line of said Jennings Survey, the Southwest corner of Melissa
Smith Murray, et al "called" 58.42 acre tract of land, recorded in
Volume 4413, Page 186, said Official Public Records, Grayson
County, Texas, an Ell comer of both said TPJ 184.50 ac. and the
herein described tract;
THENCE South 88 deg. 22 min. 24 sec. East, with a North line
of said TPJ 184.50 ac., the South line of said Murray 58.42 ac., a
distance of 1,909.01 ft. to a 1/2 inch rebar found at the Northwest
corner of Legacy Title Holding Corp. 9.71 acre tract of land,
recorded in Volume 5581, Page 396, said Official Public Records,
Grayson County, Texas, the South line of said Murray 58.42 ac., the
most Southerly Northeast corner of both said TPJ 184.50 ac. and the
herein described tract;
THENCE South 25 deg. 37 min. 12 sec. East, with an East line
of said TPJ 184.50 ac., the West line of said Legacy 9.71 ac., a
distance of 1,234.96 ft. to a concrete nail found in or near the
center of Canyon Grove Road, the South line of said Jennings Survey,
the North line of the J. B. McAnair Survey, Abstract No. 763, the
Southwest corner of said Legacy 9.71 ac., the Southeast comer of
both said TPJ 184.50 ac. and the herein described tract;
THENCE South 75 deg. 51 min. 38 sec. West, with or near the
center of said Canyon Grove Road, the South line of said Jennings
Survey, the North line of said McAnair Survey, a South line of said
TPJ 184.50 ac., a distance of 1,284.66 ft. to a point at an Ell comer
of said TPJ 184.50 ac. and the herein described tract;
THENCE North 03 deg. 51 min. 00 sec. West, continuing with a
South line of said TPJ 184.50 ac., a distance of 17.20 ft. to a point
at an Ell comer of both said TPJ 184.50 ac. and the herein described
tract;
THENCE South 75 deg. 46 min. 55 sec. West, continuing with a
South line of said TPJ 184.50 ac., a distance of 778.89 ft. to a
point at the intersection of the North right-of-way line of U. S.
Highway No. 82 and said Canyon Grove Road, an angle point of both
said TPJ 184.50 ac., and the herein described tract;
THENCE Northwesterly, with a curve to the right having a
radius of 5,579.68 ft., a central angle of 04 deg. 45 min. 50 sec.,
(Chord Bears: North 86 deg. 01 min. 55 sec. West, 463.80 ft.) an arc
distance of 463.93 ft. to a point on the North right-of-way line of
said Highway 82, an angle point of both said TPJ 184.50 ac. and the
herein described tract;
THENCE North 83 deg. 39 min. 00 sec. West, continuing with the
North right-of-way line of said Highway 82, a South line of said TPJ
184.50 ac., a distance of 892.95 ft. to a point on the North
right-of-way line of said Highway 82, a South line of said TPJ
184.50 ac., the most Southerly Southwest corner of the herein
described tract;
THENCE North 01 deg. 03 min. 03 sec. East, over and across
said TPJ 184.50 ac., a distance of 798.17 ft. to a point at an Ell
corner of the herein described tract;
THENCE North 88 deg. 56 mm. 57 sec. West, continuing over and
across said TPJ 184.50 ac., a distance of 602.69 ft. to a point in or
near the center of said Plainview Road, the West line of said TPJ
184.50 ac., the East line of said Heritage 254.489 ac., the most
Northerly Southwest corner of the herein described tract;
THENCE North 01 deg. 03 min. 03 sec. East, with or near the
center of said Plainview Road, the West line of said TPJ 184.50 ac.,
the East line of said Heritage 254.489 ac., a distance of 2,455.35
ft. to the PLACE OF BEGINNING and containing 173.916 ACRES of land.
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) If this Act does not receive a two-thirds
vote of all the members elected to each house, Subchapter C, Chapter
7920A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7920A.0307 to read as
follows:
Sec. 7920A.0307. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) 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 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, 2021.