82R19375 KYF-F By: Flynn H.B. No. 2363 Substitute the following for H.B. No. 2363: By: Hopson C.S.H.B. No. 2363 A BILL TO BE ENTITLED relating to the creation of the Bearpen Creek Municipal Utility District of Hunt County; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. 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 8363 to read as follows: CHAPTER 8363. BEARPEN CREEK MUNICIPAL UTILITY DISTRICT OF HUNT COUNTY SUBCHAPTER A. GENERAL PROVISIONS Sec. 8363.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means a municipality in whose corporate limits or extraterritorial jurisdiction the district is located. (3) "Commission" means the Texas Commission on Environmental Quality. (4) "Director" means a board member. (5) "District" means the Bearpen Creek Municipal Utility District of Hunt County. Sec. 8363.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8363.003. CONFIRMATION AND DIRECTORS' 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. 8363.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8363.003 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. 8363.005. 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. 8363.006. 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. [Sections 8363.007-8363.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8363.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8363.052, directors serve staggered four-year terms. Sec. 8363.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Jessica Shae Ewy; (2) Jason Michael Farmer; (3) Charles Richard Johns; (4) Warren Jacob Loftis; and (5) Martin Jacob Newman. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8363.003; 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 8363.003 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 8363.003; 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. [Sections 8363.053-8363.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8363.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8363.102. 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. 8363.103. 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. 8363.104. 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. 8363.105. 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. 8363.106. ACQUISITION OF PERMIT RIGHTS. (a) Using any available district money, including bond proceeds, the district may pay all expenses related to the acquisition of a certificate of public convenience and necessity from another retail public utility and any other permit rights necessary to provide the city authority to provide retail water or sewer service in the district. The acquisition, by purchase or otherwise, may be made by the district on behalf of and for transfer to the city or by the city directly. (b) In relation to a retail public utility that provides water or sewer service to all or part of the area of the district under a certificate of public convenience and necessity, the district may exercise the powers given to a municipality provided by Section 13.255, Water Code, as if the district were a municipality that had annexed the area of the district. The commission shall grant single certification as to the city as provided by Section 13.255(c), Water Code, in the event that the district applies for the certification on the city's behalf in the manner provided by Section 13.255(b), Water Code. (c) The city may contract with the district to carry out the purposes of this section without further authorization. Sec. 8363.107. LIMITATION ON USE OF EMINENT DOMAIN. 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 8363.103; or (2) a recreational facility as defined by Section 49.462, Water Code. [Sections 8363.108-8363.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8363.151. 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 8363.153. (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. 8363.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8363.151, 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. 8363.153. 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. [Sections 8363.154-8363.200 reserved for expansion] SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8363.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) Except as provided by Subsection (b), 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. (b) The district may not issue bonds until the governing body of the city approves a bond issuance plan authorizing and setting forth the limitations on the issuance of the bonds. Sec. 8363.202. 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. 8363.203. 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. [Sections 8363.204-8363.250 reserved for expansion] SUBCHAPTER F. DISSOLUTION OF DISTRICT Sec. 8363.251. DISSOLUTION BY CITY ORDINANCE. (a) The city may dissolve the district by ordinance after provision is made for all debts incurred by the district if one or more of the following does not occur: (1) on or before the 90th day after the effective date of the Act enacting this chapter, the city receives one or more petitions requesting annexation of all territory in the district remaining in the extraterritorial jurisdiction of the city; (2) on or before the last day of the ninth month after the effective date of the Act enacting this chapter, the city adopts one or more ordinances annexing all territory in the district remaining in the city's extraterritorial jurisdiction; (3) on or before the last day of the third year after the effective date of the Act enacting this chapter, the commission issues an order approving the sale and transfer of a certificate of public convenience and necessity authorizing the city to provide retail water service to territory in the district; or (4) by the end of the fifth year after the effective date of the Act enacting this chapter, the district has completed construction of internal streets and water and sanitary sewer facilities sufficient to serve at least 100 residential lots in the district. (b) If the city dissolves the district under Subsection (a): (1) any district assets that remain after the payment of debts shall be transferred to the city; and (2) the organization of the district shall be maintained until all the debts are paid or assumed and remaining assets are transferred. (c) This section does not limit the authority of the city to dissolve the district under Chapter 43, Local Government Code, or other general law. SECTION 2. The Bearpen Creek Municipal Utility District of Hunt County initially includes all the territory contained in the following area: A metes and bounds description of a 960.90 acre tract of land situated in the James May Survey, Abstract No. 1297, the James Roads Survey, Abstract No. 872, the G.W. McCafferty Survey, Abstract No. 1298, the Shelby County School Land Survey, Abstract No. 946, and the John Stone Survey, Abstract No. 198, Hunt County, Texas, and being that land described by deeds to Bearpen Creek, L.P, as recorded in Volume 1184, Page 63, Volume 1184, Page 68, Volume 1184, Page 54, Volume 1184, Page 73, Volume 1184, Page 59, Volume 1184, Page 59, Volume 1184, Page 36, Volume 1184, Page 50, Volume 1184, Page 41, Volume 1184, Page 45, and Volume 1184, Page 32, Deed Records, Hunt County, Texas. BEGINNING at a point for the south right-of-way line of U.S. Interstate 30, being the northwest corner of said deed recorded in Volume 1184, Page, 63 and being the northeast corner of a tract of land described by deed to Sharon McCall, as recorded in Volume 897, Page 372, Deed Records, Hunt County, Texas; THENCE North 88°51'12" East along the said south right-of-way line, a distance of 1284.70 feet to a point for corner being the northwest corner of a tract of land described by deed to Crawford, as recorded in Volume 178, Page 743, Deed Records, Hunt County, Texas; THENCE South 01°06'57" East leaving said right-of-way and along the west line of said Crawford tract, a distance of 943.75 feet to a point for corner, being an el corner of this tract and the southwest corner of said Crawford tract and being near the center of County Road 2515; THENCE North 88°53'22" East along the south line of said Crawford tract being in said County Road, a distance of 723.00 feet to a point for corner, being the southeast corner of said Crawford tract and being the southwest corner of a tract of land described by deed to Action Inc., as recorded in Volume 453, Page 845, Deed Records, Hunt County, Texas; THENCE North 76°06'29" East along the south line of said Action Inc., a distance of 135.68 feet to a point for corner, being the northwest corner of a remainder of a tract of land described by deed to Leonard H. Daniel, as recorded in Volume 99, Page 548, Deed Records, Hunt County, Texas; THENCE South 00°06'22" East leaving said County Road and the south line of said Action Inc, and along the west line of said Daniel remainder tract, a distance of 748.00 feet to a point for corner; THENCE North 89°08'43" East along the south line of said Daniel remainder tract, a distance of 395.42 feet to a point for corner being in the west line of a tract of land described by deed to Leonard H. Daniel, as recorded in Volume 859, Page 497, Deed Records, Hunt County, Texas; THENCE South 00°18'34" East along the west line of said Daniel tract, a distance of 740.51 feet to a point for corner, being an el corner of this tract and the southwest corner of said Daniel tract and the northwest corner of a tract of land described by said deed in Volume 1184, Page 54; THENCE North 89°40'05" East along the south line of said Daniel tract, a distance of 1230.31 feet to a point for corner, being the southeast corner of said Daniel tract and southwest corner of a tract of land described by deed to Sam Holmes in Volume 267, Page 631, Deed Records, Hunt County, Texas; THENCE North 89°02'16" East along the south line of said Holmes tract, a distance of 1610.64 feet to a point for corner, being the southwest corner of a tract of land known as Magnolia Place as recorded by Plat in Cabinet E, Slide 169, Plat Records, Hunt County, Texas; THENCE North 89°01'45" East along the south line of said Magnolia Place, a distance of 402.32 feet to a point for corner, being the northeast corner of said tract of land recorded in Volume 1184, Page 73 and being an el corner of said Magnolia Place; THENCE South 01°21'12" East along the east line of said tract of land recorded in Volume 1184, Page 73 and the west line of said Magnolia Place, a distance of 1247.77 feet to a point for corner, being in County Road 2596; THENCE North 89°34'22" East with the said County Road, along the south line of said Magnolia Place, along the south line of a tract of land known as South Gentry as recorded by plat in Cabinet E, Slide 169, Plat Records, Hunt County, Texas, and along the south line of a tract of land described by deed to Bobby Crowell in Volume 858, Page 332, Deed Records, Hunt County, Texas, a distance of 2343.14 feet to a point for corner, being the northwest corner of Hoffman Estates as recorded in Volume B, Page 52, Deed Records, Hunt County, Texas; THENCE South 00°05'44" West along the west line of Hoffman Estates, a distance of 1135.75 feet to a point for corner; THENCE South 16°57'40" East continuing along said west line a distance of 83.02 feet to a point for corner; THENCE South 00°47'53" East continuing along said west line a distance of 613.79 feet to a point for corner; THENCE North 89°59'40" West continuing along said west line a distance of 36.33 feet to a point for corner; THENCE South 00°23'15" East continuing along said west line a distance of 1083.06 feet to a point for corner, being in County Road 2595 and being the southeast corner of said tract recorded in Volume 1184, Page 73; THENCE South 89°53'25" West along the south line of said tract recorded in Volume 1184, Page 73 and the north line of a tract described by deed to Brandy Kent Maynard in Volume 956, Page 460, Deed Records, Hunt County, Texas, a distance of 1480.58 feet to a point for corner, being the northwest corner of said Maynard tract and the northeast corner of said tract of land recorded by deed in Volume 1184, Page 59; THENCE South 00°38'57" East along the west line of said Maynard tract and a tract of land described by deed to John Carpenter in Volume 956, Page 452, Deed Records, Hunt County, Texas, a distance of 962.74 feet to a point for corner; THENCE South 00°38'44" East continuing along said properties, a distance of 1768.37 feet to a point for corner, being the southeast corner of said tract of land recorded by deed in Volume 1184, Page 59 and being in County Road 2526; THENCE South 89°46'54" West along the south line of said tract of land recorded by deed in Volume 1184, Page 59 and said County Road, a distance of 860.80 feet to a point for corner, being the southwest of said tract and being the southeast corner of said tract of land recorded by deed in Volume 1184, Page 36; THENCE in a westerly direction along the south line of said tract of land recorded by deed in Volume 1184, Page 36 and with said County Road: South 87°54'36" West a distance of 297.64 feet to a point for corner; North 84°13'06" West a distance of 213.00 feet to a point for corner; South 87°46'54" West a distance of 358.00 feet to a point for corner, being the southwest corner of said tract of land recorded by deed in Volume 1184, Page 36 and the being in the east line of said tract of land recorded in Volume 1184 Page 50; THENCE South 00°22'13" East along the east line of said tract of land recorded in Volume 1184 Page 50, a distance of 19.89 feet to a point for corner, being the southeast corner of said tract; THENCE South 89°27'03" West along the south line of said tract, a distance of 821.50 feet to a point for corner, being the southwest corner of said tract of land recorded in Volume 1184, Page 50 and being the southeast corner of said tract of land recorded in Volume 1184, Page 41; THENCE South 89°27'03" West continuing along said south line, a distance of 1336.90 feet to a point for corner, being the southwest corner of said tract and the southeast corner of a tract of land known as Hill Estate as recorded by plat in Volume A, Page 52, Plat Records, Hunt County, Texas and being the southwest corner of said tract of land recorded in Volume 1184, Page 41; THENCE North 01°28'22" West along the east line of said Hill Estate, the west line of said tract of land recorded in Volume 1184, Page 41, and leaving said County Road, a distance of 1899.51 feet to a point for corner, being the northeast corner of said Hill Estate and in the south line of said tract of land recorded in Volume 1184, Page 45; THENCE South 89°37'28" West along the south line of said tract of land recorded in Volume 1184, Page 45 and the north line of said Hill Estate, a distance of 2195.58 feet to a point for corner, being the southwest corner line of said tract of land recorded in Volume 1184, Page 45 and being in the east line of a tract of land described by deed to Clark Baldwin as recorded in Volume 772, Page 209, Deed Records Hunt County, Texas; THENCE North 00°15'40" West long the east line of the Clark Baldwin tract, a tract of land described by deed to A. B. Fenton recorded in Volume 634, Page 219, Deed Records, Hunt County, Texas, and a tract of land described by deed to Mariana G. Daffron as recorded in Volume 771, Page 515, Hunt County, Texas, a distance of 1902.70 feet to a point for corner, being the northwest corner of said tract of land recorded in Volume 1184, Page 45 and being in County Road 2595; THENCE North 89°57'07" East with said County Road and along the south line of the tract of land described by deed to Jimmy Joe Herndon as recorded Volume 515, Page 292, Deed Records, Hunt County, Texas, a distance of 1988.16 feet to a point for corner, being in the north line of said tract of land recorded in Volume 1184, Page 36, being the southeast corner of said Herndon tract, and being the southwest corner of said tract of land recorded in Volume, 1184 Page 54; THENCE North 00°17'49" West leaving said County Road and along the west line of said tract of land recorded in Volume 1184 Page 54 and the east line of the said Herndon tract, a distance of 1807.59 feet to a point for corner, being the southeast corner of said tract of land recorded in Volume 1184, Page 68 and the northeast corner of said Herndon tract; THENCE South 89°37'15" West leaving the west line of said tract of land recorded in Volume 1184, Page 54 and along the said Herndon tract and along the north line of the tracts of land described by deed to Jimmy Joe Herndon as recorded in Volume 390, Page 584, and Volume 57, Page 513, Deed Records, Hunt County, Texas and along the south line of said tract of land recorded in Volume 1184, Page 68 and south line of said tract of land recorded in Volume 1184, Page 32, a distance of 3880.16 feet to a point for corner, being the southwest corner of said tract of land recorded in Volume 1184, Page 32 and being in the east right-of-way line of Farm to Market Road 35; THENCE North 25°20'14" West along east line of said F.M. Road and along the west line of said tract of land recorded in Volume 1184, Page 32, a distance of 547.80 feet to a point for corner; THENCE North 00°37'50" West continuing along said lines, a distance of 197.10 feet to a point for corner, being the northwest corner of said tract of land recorded in Volume 1184, Page 32, the southwest corner of a tract of land described to Carlton C. White, Inc. as recorded in Volume 269, Page 489, Deed Records, Hunt County, Texas; THENCE North 89°13'10" East along the south line of said White tract and the north line of said tract of land recorded in Volume 1184, Page 32, a distance of 2550.67 feet to a point for corner, being the southeast corner of the White tract, the northeast corner of said tract of land recorded in Volume 1184, Page 32 and in the east line of said tract of land recorded in Volume 1184, Page 68; THENCE North 00°16'55" East along the east line of the White tract and the west line of said tract of land recorded in Volume 1184, Page 68, a distance of 2014.42 feet to a point for corner, being in the south line of said tract of land recorded in Volume 1184, Page 63; THENCE South 88°53'22" West continuing along north line of said White tract and the south line of said tract of land recorded in Volume 1184 Page 63, a distance of 991.00 feet to a point for corner, being the southwest corner of said tract of land recorded in Volume 1184, Page 63 and the southeast corner of said McCall tract; THENCE North 01°06'57" West along west line of said tract of land recorded in Volume 1184, Page 63 and the east line of said McCall tract, a distance of 942.94 feet to the POINT OF BEGINNING and containing 960.90 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, 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) Section 8363.107, 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 8363, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8363.107 to read as follows: Sec. 8363.107. 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. Except as provided by Section 4 of this Act: (1) 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; and (2) if this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.