Bill Text: TX SB2257 | 2021-2022 | 87th Legislature | Comm Sub

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Bill Title: Relating to the creation of the Northwest Denton County Municipal Utility District No. 1; 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) 2021-05-21 - Recommendations filed with the Senate [SB2257 Detail]

Download: Texas-2021-SB2257-Comm_Sub.html

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By: Springer S.B. No. 2257
(In the Senate - Filed May 13, 2021; May 14, 2021, read
first time and referred to Committee on Local Government;
May 19, 2021, reported favorably by the following vote: Yeas 9,
Nays 0; May 19, 2021, sent to printer.)
Click here to see the committee vote

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Northwest Denton County Municipal
Utility District No. 1; 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 7933A to read as follows:
CHAPTER 7933A. NORTHWEST DENTON COUNTY MUNICIPAL UTILITY DISTRICT
NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7933A.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 Northwest Denton County
Municipal Utility District No. 1.
Sec. 7933A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7933A.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. 7933A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7933A.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. 7933A.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. 7933A.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. 7933A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7933A.0202, directors
serve staggered four-year terms.
Sec. 7933A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Lance Martin;
(2) Jason Tuberville;
(3) Zach Stateson;
(4) Clarke Overlander; and
(5) Michelle Dobson.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7933A.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 7933A.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 7933A.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. 7933A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7933A.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. 7933A.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. 7933A.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. 7933A.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. 7933A.0306. DIVISION OF DISTRICT. (a) The district
may be divided into two or more new districts only if the district:
(1) has no outstanding bond 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
7933A.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) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 7933A.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) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
7933A.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.
(j) Any 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7933A.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
7933A.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. 7933A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7933A.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. 7933A.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. 7933A.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. 7933A.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. 7933A.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 Northwest Denton County Municipal Utility
District No. 1 initially includes all the territory contained in
the following area:
BEING a tract of land situated in the William Mason Survey, Abstract
No. 801, the B.B.B. & C.R.R. Co. Survey, Abstract No. 199, and the
B.B.B. & C.R.R. Co. Survey, Abstract No. 1457, Denton County,
Texas, and being a portion of a called 55.27 acre tract of land
described in a Warranty Deed to Wilbur Clarence Hoehn, as recorded
in Instrument No. 1994-69063 of the Official Records of Denton
County, Texas, and also being all of Lots 1 thru 6, Block A of Saddle
Ridge Estates, according to the Final Plat thereof recorded in
Cabinet M, Page 241 of the Plat Records of Denton County, Texas, and
being all of a called 100.00 acre tract of land described as First
Tract and all of a called 76.691 acre tract of land described as
Second Tract in a Conveyance, Assignment and Deed to MER Energy,
LTD., as recorded in Instrument No. 2011- 110535 of the Official
Records of Denton County, Texas, in a Conveyance, Assignment and
Deed to Rudco Land, LLC, as recorded in Instrument No. 2017-16370 of
the Official Records of Denton County, Texas, and in Conveyance,
Assignment and Deed of Correction to Ira W. Silverman, Trustee of
the Tachina Rudman Trust, as recorded in Instrument No. 2019-142385
of the Official Records of Denton County, Texas, and being more
particularly described as follows:
BEGINNING at a mag nail set for the northwest corner of said 55.27
acre tract, common to the northeast corner of a 30 foot road
dedication shown on the Final Plat of said Saddle Ridge Estates,
being in the centerline of Hoehn Road, a variable width right of
way, and on the southerly line of a called 160.27 acre tract of land
described in a deed to Earthland Farms, LLC, as recorded in
Instrument No. 2017-144271 of the Official Records of Denton
County, Texas;
THENCE South 89°36'45" East, along the northerly line of said 55.27
acre tract, the southerly line of said 160.27 acre tract, the
southerly line of a called 10.01 acre tract of land described in a
deed to Miguel Del Rosario Vinales and Souvanna Del Rosario
Vinales, as recorded in Instrument No. 2018-84116 of the Official
Records of Denton County, Texas, the southerly line of a called
10.01 acre tract of land described in a deed to Christopher M.
Conely and Dawn M. Conely, as recorded in Instrument No. 2019-65759
of the Official Records of Denton County, Texas, the southerly line
of a called 10.01 acre tract of land described in a deed to Yadira
Alvarado, as recorded in Instrument No. 2019-903 of the Official
Records of Denton County, Texas, the southerly line of a called
10.01 acre tract of land described in a deed to Armando Olvera,
Isidro Olvera and Olivia Olvera, as recorded in Instrument No.
2018-111054 of the Official Records of Denton County, Texas, and
the centerline of said Hoehn Road, a distance of 2056.33 feet to a
point for corner;
THENCE South 0°29'54" West, departing the centerline of said Hoehn
Road, and crossing said 55.27 acre tract, a distance of 826.73 feet
to a point for corner on the southerly line of said 55.27 acre tract
and on the northerly line of a called 104.5051 acre tract of land
described in a deed to Charles E. Stobaugh, as recorded in Volume
2827, Page 965 of the Deed Records of Denton County, Texas;
THENCE along the common line of said 55.27 acre tract and said
104.5051 acre tract, the following courses and distances:
South 87°03'58" West, a distance of 359.14 feet to a metal
fence post found for an ell corner of said 55.27 acre tract,
common to the northerly northwest corner of said 104.5051
acre tract;
South 2°15'37" West, a distance of 183.36 feet to a 1/2 inch
iron rod for the southerly southeast corner of said 55.27
acre tract, common to an ell corner of said 104.5051 acre
tract;
North 89°56'04" West, a distance of 1688.00 feet to a 1/2 inch
iron rod with plastic cap stamped “RPLS 4561” found for the
southwest corner of said 55.27 acre tract, common to the
southerly northwest corner of said 104.5051 acre tract, being
on the easterly line of said Lot 6;
THENCE South 0°15'53" West, along the easterly line of said Lot 6 and
the westerly line of said 104.5051 acre tract, a distance of 1736.32
feet to a 1/2 inch iron rod found for the southeast corner of said
Lot 6, common to the southwest corner of said 104.5051 acre tract,
the northwest corner of a called 145.493 acre tract of land
described in a deed to FFILP Land Holdings, LLC, as recorded in
Instrument No. 2019-51911 of the Official Records of Denton County,
Texas, and the northeast corner of a called 26.008 acre tract of
land described in a deed to Dale P. McCurley, as recorded in Volume
1041, Page 494 of the Deed Records of Denton County, Texas;
THENCE North 89°57'58" West, along the southerly lines of said Lots
1 thru 6, the northerly line of said 26.008 acre tract, the
northerly line of a tract of land described in a deed to Carl
McCurley, Henry Thompson and V.H. Ward, Jr., as recorded in Volume
663, Page 80 of the Deed Records of Denton County, Texas, the
northerly line of a called 13.004 acre tract of land described in a
deed to McCurley Ranch, Ltd., as recorded in Instrument No.
1999-126276 of the Official Records of Denton County, Texas, the
northerly line of a called 26.008 acre tract of land described as
Tract 1 in a deed to McCurley Ranch, Ltd., as recorded in Instrument
No. 1999- 126276 of the Official Records of Denton County, Texas,
and the northerly line of a called 78.473 acre tract of land
described in a deed to Ray Sullivan Carson, as recorded in Volume
478, Page 599 of the Deed Records of Denton County, Texas, a
distance of 2531.49 feet to a metal post found for the southwest
corner of said Lot 1, common to the northwest corner of said 78.473
acre tract, being on the easterly line of a called 100 acre tract of
land described in a deed to Adrian J. Butler, Jr., and Margaret J.
Butler, as recorded in Instrument No. 1995-47603 of the Official
Records of Denton County, Texas;
THENCE North 0°14'24" East, along the westerly line of said Lot 1 and
the easterly line of said 100 acre tract, a distance of 226.41 feet
to the northeast corner of said 100 acre tract, common to the
southeast corner of aforesaid Second Tract;
THENCE North 89°29'36" West, departing the westerly line of said
Saddle Ridge Estates, along the southerly line of said Second Tract
and the northerly line of said 100 acre tract, a distance of 2983.73
feet to a mag nail set for corner the southwest corner of said
Second Tract, common to the northwest corner of said 100 acre tract,
being in Lois Road, a variable width right-of-way, and on the
easterly line of a called 84.23 acre tract of land described in a
deed to Earthland Farms, LLC, as recorded in Instrument No.
2018-88474 of the Official Records of Denton County, Texas;
THENCE North 0°14'24" East, along the westerly lines of said First
and Second Tract, the easterly line of said 84.23 acre tract, and
said Lois Road, a distance of 2577.69 feet to a mag nail set for
northwest corner of said First Tract, being on the northerly
right-of-way line of aforesaid Hoehn Road;
THENCE South 89°55'36" East, departing said Lois Road, along the
northerly line of said First Tract and the northerly right-of-way
line of said Hoehn Road, a distance of 2983.71 feet to a 60D Nail
found for the northeast corner of said First Tract, being on the
northerly right-of-way line of Hoehn Road, a variable width
right-of-way;
THENCE South 0°14'24" West, departing the northerly right-of-way
line of said Hoehn Road, crossing said Hoehn Road and along the
easterly line of said First Tract, a distance of 50.84 feet to the
northwest corner of said Lot 1, same being on the southerly
right-of-way line of said Hoehn Road;
THENCE South 89°18'18" East, departing the easterly line of said
First Tract, along northerly lines of said Lots 1 thru 6, the
southerly line of said 30 foot wide road dedication and the
southerly right-of-way line of said Hoehn Road, a distance of
2532.73 feet to the northeast corner of said Lot 6, being on the
westerly line of aforesaid 55.27 acre tract;
THENCE North 0°15'53" East, along the easterly line of said 30 foot
wide road dedication, the easterly right-of-way line of said Hoehn
Road, and the westerly line of said 55.27 acre tract, a distance of
30.00 feet to the POINT OF BEGINNING and containing 385.028 acres
(16,771,817 square feet) of land, more or less.
Bearing system based on the Texas Coordinate System of 1983, North
Central Zone (4202), North American Datum of 1983.
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
7933A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7933A.0307 to read as
follows:
Sec. 7933A.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.
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