Texas 2011 82nd Regular

Texas Senate Bill SB1184 Introduced / Bill

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                    82R5811 NAJ-F
 By: Nichols S.B. No. 1184


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the Timber Springs Municipal Management
 District; providing authority to impose a tax, levy an assessment,
 and issue bonds.
 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 3897 to read as follows:
 CHAPTER 3897.  TIMBER SPRINGS MUNICIPAL MANAGEMENT DISTRICT
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 3897.001.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "Director" means a board member.
 (3)  "District" means the Timber Springs Municipal
 Management District.
 (4)  "Improvement project" means a project authorized
 by Subchapter C-1.
 Sec. 3897.002.  CREATION AND NATURE OF DISTRICT. The
 district is a special district created under Section 59, Article
 XVI, Texas Constitution.
 Sec. 3897.003.  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 a
 municipality in which the district is located 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 a municipality or county in which the
 district is located from providing the level of services provided
 as of the effective date of the Act enacting this chapter to the
 area in the district.  The district is created to supplement and not
 to supplant municipal and county services provided in the district.
 Sec. 3897.004.  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 creation of the district is in the public interest
 and is essential to further the public purposes of:
 (1)  developing and diversifying the economy of the
 state;
 (2)  eliminating unemployment and underemployment;
 (3)  providing quality residential housing; and
 (4)  developing or expanding transportation and
 commerce.
 (d)  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 residential 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.
 (e)  Pedestrian ways along or across a street, whether at
 grade or above or below the surface, and street lighting, street
 landscaping, vehicle parking, and street art objects are parts of
 and necessary components of a street and are considered to be an
 improvement project that includes a street or road improvement.
 (f)  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. 3897.005.  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
 Section 3897.111 or other law.
 (b)  A mistake in the field notes of the district contained
 in Section 2 of the Act enacting this chapter or in copying the
 field notes in the legislative process does not in any way affect:
 (1)  the district's organization, existence, or
 validity;
 (2)  the district's right to contract, including the
 right to issue any type of bond or other obligation for a purpose
 for which the district is created;
 (3)  the district's right to impose or collect an
 assessment, tax, or any other revenue; or
 (4)  the legality or operation of the board.
 Sec. 3897.006.  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 by a
 municipality in which the district is located under Chapter 311,
 Tax Code;
 (2)  a tax abatement reinvestment zone created by a
 municipality in which the district is located under Chapter 312,
 Tax Code; or
 (3)  an enterprise zone created by a municipality in
 which the district is located under Chapter 2303, Government Code.
 (b)  If a municipality in which the district is located
 creates a tax increment reinvestment zone described by Subsection
 (a), the municipality 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 the
 purposes permitted for money granted to a corporation under Section
 380.002(b), Local Government Code, including the right to pledge
 the money as security for any bonds issued by the district for an
 improvement project.
 Sec. 3897.007.  ACTIVITIES NOT SUBJECT TO JURISDICTION OR
 SUPERVISION OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY.  The
 district's activities are not subject to the jurisdiction or
 supervision of the Texas Commission on Environmental Quality under
 Chapter 49, Water Code, Chapter 375, Local Government Code, or any
 other law.
 [Sections 3897.008-3897.050 reserved for expansion]
 SUBCHAPTER B.  BOARD OF DIRECTORS
 Sec. 3897.051.  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 May 31 of
 each even-numbered year.
 Sec. 3897.052.  ELECTION DATE. The board shall hold an
 election for directors on the uniform election date in May in
 even-numbered years.
 Sec. 3897.053.  ELIGIBILITY. (a) To be qualified to serve
 as a director, a person must be:
 (1)  an owner of real property in the district; or
 (2)  an employee of a person described by Subdivision
 (1).
 (b)  Section 49.052, Water Code, does not apply to the
 district.
 Sec. 3897.054.  VACANCY. (a)  The remaining directors shall
 fill a vacancy on the board by appointing a person who meets the
 qualifications prescribed by Section 3897.053.
 (b)  If there are fewer than three directors, the governing
 body of the largest municipality in which the district is located
 shall appoint the necessary number of directors to fill all board
 vacancies.
 Sec. 3897.055.  DIRECTOR'S OATH OR AFFIRMATION. 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.
 Sec. 3897.056.  OFFICERS. The board shall elect from among
 the directors a chair, a vice chair, and a secretary.
 Sec. 3897.057.  COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
 EXPENSES. (a) The district may compensate each director in an
 amount not to exceed $50 for each board meeting. The total amount
 of compensation a director may receive each year may not exceed
 $2,000.
 (b)  A director is entitled to reimbursement for necessary
 and reasonable expenses incurred in carrying out the duties and
 responsibilities of a director.
 Sec. 3897.058.  INITIAL DIRECTORS. (a) The initial board
 consists of the following directors:
 Pos. No.  Name of Director Pos. No.  Name of Director
Pos. No.  Name of Director
 1  ________________ 1  ________________
1  ________________
 2  ________________ 2  ________________
2  ________________
 3  ________________ 3  ________________
3  ________________
 4  ________________ 4  ________________
4  ________________
 5  ________________ 5  ________________
5  ________________
 (b)  Of the initial directors, the terms of directors
 appointed for positions 1 and 2 expire May 31, 2012, and the terms
 of directors appointed for positions 3 through 5 expire May 31,
 2014.
 (c)  This section expires September 1, 2014.
 [Sections 3897.059-3897.100 reserved for expansion]
 SUBCHAPTER C.  POWERS AND DUTIES
 Sec. 3897.101.  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. 3897.102.  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. 3897.103.  ROAD DISTRICT POWERS; EXCEPTION.  (a)
 Except as provided by Subsection (b), the district has the powers
 provided by the general laws relating to road districts and road
 utility districts created under Section 52(b), Article III, Texas
 Constitution, including Chapter 441, Transportation Code.
 (b)  The district may exercise any power granted by this
 chapter and by Chapter 441, Transportation Code, without regard to
 any provision or requirement of, or procedure or maintenance tax
 rate limitation prescribed by, Chapter 441, Transportation Code.
 Sec. 3897.104.  PUBLIC IMPROVEMENT DISTRICT POWERS. The
 district has the powers provided by Subchapter A, Chapter 372,
 Local Government Code, to a municipality or county.
 Sec. 3897.105.  MUNICIPAL MANAGEMENT DISTRICT POWERS.  The
 district has the powers provided by Chapter 375, Local Government
 Code.
 Sec. 3897.106.  RULES; ENFORCEMENT. (a) The district may
 adopt rules:
 (1)  to administer or operate the district;
 (2)  for the use, enjoyment, availability, protection,
 security, and maintenance of the district's property and
 facilities; or
 (3)  to provide for public safety and security in the
 district.
 (b)  The district may enforce its rules by injunctive relief.
 Sec. 3897.107.  CONFLICT WITH MUNICIPAL RULE, ORDER, OR
 ORDINANCE.  To the extent a district rule conflicts with a rule,
 order, or ordinance of a municipality in which the district is
 located, the municipal rule, order, or ordinance controls.
 Sec. 3897.108.  NAME CHANGE. The board by resolution may
 change the district's name. The board shall give written notice of
 the change to each municipality in which the district is located.
 Sec. 3897.109.  TERMS OF EMPLOYMENT; COMPENSATION.  The
 board may employ and establish the terms of employment and
 compensation of an executive director or general manager and any
 other district employees the board considers necessary.
 Sec. 3897.110.  USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OR
 FACILITY OF DISTRICT. (a) The board by rule may regulate the
 private use of a public roadway, open space, park, sidewalk, or
 similar public area or facility in the district. A rule may provide
 for the safe and orderly use of public roadways, open spaces, parks,
 sidewalks, and similar public areas or facilities.
 (b)  The board may require a permit for a parade,
 demonstration, celebration, entertainment event, or similar
 nongovernmental activity in or on a public roadway, open space,
 park, sidewalk, or similar public area or facility owned by the
 district. The board may charge a fee for the permit application or
 for public safety or security services for those facilities in an
 amount the board considers necessary.
 (c)  The board may require a permit or franchise agreement
 with a vendor, concessionaire, exhibitor, or similar private or
 commercial person or organization for the limited use of the area or
 facility owned by the district on terms and on payment of a permit
 or franchise fee the board may impose.
 Sec. 3897.111.  ADDING OR REMOVING TERRITORY. As provided
 by Subchapter J, Chapter 49, Water Code, the board may add territory
 to the district, subject to Section 54.016, Water Code, or remove
 territory from the district, except that:
 (1)  the addition or removal of the territory must be
 approved by:
 (A)  the governing body of the municipality in
 which the territory is located, as applicable; and
 (B)  the owners of the territory being added or
 removed;
 (2)  a reference to a tax in Subchapter J, Chapter 49,
 or Section 54.016, Water Code, means an ad valorem tax; and
 (3)  territory may not be removed from the district if
 bonds or other obligations of the district payable wholly or partly
 from ad valorem taxes or assessments levied or assessed on the
 territory are outstanding.
 Sec. 3897.112.  ECONOMIC DEVELOPMENT. (a)  The district may
 create an economic development program authorized by Section 52-a,
 Article III, Texas Constitution.
 (b)  The district may exercise the economic development
 powers that:
 (1)  Chapter 380, Local Government Code, provides to a
 municipality with a population of more than 100,000; and
 (2)  Chapter 1509, Government Code, provides to a
 municipality.
 Sec. 3897.113.  NO EMINENT DOMAIN POWER. The district may
 not exercise the power of eminent domain.
 [Sections 3897.114-3897.150 reserved for expansion]
 SUBCHAPTER C-1.  IMPROVEMENT PROJECTS
 Sec. 3897.151.  BOARD DETERMINATION REQUIRED.  The district
 may not undertake an improvement project unless the board
 determines the project to be necessary to accomplish a public
 purpose of the district.
 Sec. 3897.152.  LOCATION OF IMPROVEMENT PROJECT. An
 improvement project may be inside or outside the district.
 Sec. 3897.153.  MUNICIPAL REQUIREMENTS.  (a)  An improvement
 project in a municipality must comply with any applicable municipal
 requirements, including codes and ordinances.
 (b)  The district may not provide, conduct, or authorize any
 improvement project on the municipality's streets, highways,
 rights-of-way, or easements without the consent of the governing
 body of that municipality.
 Sec. 3897.154.  LAKE.  For the purposes of this subchapter,
 planning, design, construction, improvement, or maintenance of a
 lake includes work done for drainage, reclamation, or recreation.
 Sec. 3897.155.  WATER.  (a)  An improvement project may
 include a supply and distribution facility or system to provide
 potable and nonpotable water to the residents and businesses of the
 district, including a wastewater collection facility.
 (b)  The district may plan, design, construct, improve,
 maintain, or operate a water or sewer facility under this section.
 Sec. 3897.156.  ROADS.  An improvement project may include a
 paved, macadamized, or graveled road or street inside and outside
 the district, to the full extent authorized by Section 52, Article
 III, Texas Constitution.
 Sec. 3897.157.  STORM WATER.  An improvement project may
 include protection and improvement of the quality of storm water
 that flows through the district.
 Sec. 3897.158.  PARKING OR HELIPORT.  An improvement project
 may include the planning, design, construction, improvement,
 maintenance, and operation of an off-street parking facility or
 heliport.
 Sec. 3897.159.  EDUCATION AND CULTURE.  An improvement
 project may include the planning and acquisition of:
 (1)  public art and sculpture and related exhibits and
 facilities; or
 (2)  an educational facility and a cultural exhibit or
 facility.
 Sec. 3897.160.  CONVENTION CENTER.  An improvement project
 may include the planning, design, construction, acquisition,
 lease, rental, improvement, maintenance, installation, and
 management of and provision of furnishings for a facility for:
 (1)  a conference, convention, or exhibition;
 (2)  a manufacturer, consumer, or trade show;
 (3)  a civic, community, or institutional event; or
 (4)  an exhibit, display, attraction, special event, or
 seasonal or cultural celebration or holiday.
 Sec. 3897.161.  DEMOLITION.  An improvement project may
 include the removal, razing, demolition, or clearing of land or
 improvements in connection with an improvement project.
 Sec. 3897.162.  MITIGATION OF ENVIRONMENTAL EFFECTS.  An
 improvement project may include the acquisition and improvement of
 land or other property for the mitigation of the environmental
 effects of an improvement project.
 Sec. 3897.163.  ACQUISITION OF PROPERTY.  An improvement
 project may include the acquisition of property or an interest in
 property in connection with an improvement project, including a
 project authorized by Subchapter A, Chapter 372, Local Government
 Code.
 Sec. 3897.164.  SPECIAL OR SUPPLEMENTAL SERVICES.  An
 improvement project may include a special or supplemental service
 for the improvement and promotion of the district or an area
 adjacent to the district or for the protection of public health and
 safety in or adjacent to the district, including:
 (1)  advertising;
 (2)  promotion;
 (3)  tourism;
 (4)  health and sanitation;
 (5)  public safety;
 (6)  security;
 (7)  fire protection or emergency medical services;
 (8)  business recruitment;
 (9)  development;
 (10)  the elimination of traffic congestion; and
 (11)  recreational, educational, or cultural
 improvements, enhancements, and services.
 Sec. 3897.165.  MISCELLANEOUS DESIGN, CONSTRUCTION, AND
 MAINTENANCE.  An improvement project may include the planning,
 design, construction, improvement, and maintenance of:
 (1)  landscaping;
 (2)  highway right-of-way or transit corridor
 beautification and improvement;
 (3)  lighting, banners, and signs;
 (4)  a street or sidewalk;
 (5)  a hiking and cycling path or trail;
 (6)  a pedestrian walkway, skywalk, crosswalk, or
 tunnel;
 (7)  a park, lake, garden, recreational facility,
 community activities center, dock, wharf, sports facility, open
 space, scenic area, or related exhibit or preserve;
 (8)  a fountain, plaza, or pedestrian mall; or
 (9)  a drainage or storm water detention improvement.
 Sec. 3897.166.  SIMILAR IMPROVEMENT PROJECTS.  An
 improvement project may include a public improvement, facility, or
 service similar to a project described by this subchapter.
 [Sections 3897.167-3897.200 reserved for expansion]
 SUBCHAPTER C-2.  CONTRACTS
 Sec. 3897.201.  GENERAL CONTRACT POWERS. The district may
 contract with any person to accomplish any district purpose.
 Sec. 3897.202.  CONTRACT TERMS.  (a)  In this section, "note"
 includes a bond anticipation note.
 (b)  A contract the district enters into to carry out a
 purpose of this chapter may be on any terms and for any period the
 board determines, including an obligation to issue a negotiable or
 nonnegotiable note or warrant payable to a municipality, a county,
 or any other person for the payment or reimbursement of any district
 costs.
 Sec. 3897.203.  REIMBURSEMENT OF COSTS.  The district may
 contract with any person for the payment, repayment, or
 reimbursement of costs incurred by that person on behalf of the
 district, including all or part of the costs of an improvement
 project and interest on the reimbursed cost.
 Sec. 3897.204.  CONTRACT FOR IMPROVEMENT PROJECT.  (a)  The
 district may contract with any person for the use, occupancy,
 lease, rental, operation, maintenance, or management of all or part
 of a proposed or existing improvement project.
 (b)  The district may apply for and contract with any person
 to receive, administer, and perform a duty or obligation of the
 district under a federal, state, local, or private gift, grant,
 loan, conveyance, transfer, bequest, or other financial assistance
 arrangement relating to the investigation, planning, analysis,
 study, design, acquisition, construction, improvement, completion,
 implementation, or operation by the district or others of a
 proposed or existing improvement project.
 Sec. 3897.205.  NO FURTHER CONTRACT AUTHORIZATION REQUIRED.
 Any person, including a municipality or county in which the
 district is located, may contract with the district to carry out the
 purposes of this chapter without further statutory or other
 authorization.
 [Sections 3897.206-3897.250 reserved for expansion]
 SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
 Sec. 3897.251.  PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
 IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district
 may issue bonds, impose taxes, or borrow money, the district and
 each municipality in which the district is located must negotiate
 and execute a project development agreement regarding the
 development plans and rules for:
 (1)  the development and operation of the district; and
 (2)  the financing of improvement projects.
 Sec. 3897.252.  BORROWING MONEY. (a)  In this section,
 "note" includes a bond anticipation note.
 (b)  The district may borrow money for a district purpose by
 issuing or executing bonds, negotiable or nonnegotiable notes,
 credit agreements, or other obligations of any kind found by the
 board to be necessary or appropriate for a district purpose. The
 bond, note, credit agreement, or other obligation must be secured
 by and payable from any combination of ad valorem taxes,
 assessments, future bond proceeds, or any other district revenue or
 sources of money.
 Sec. 3897.253.  GENERAL POWERS REGARDING PAYMENT OF DISTRICT
 BONDS, OBLIGATIONS, OR OTHER COSTS.  The district may provide or
 secure the payment or repayment of any bond, note, or other
 temporary or permanent obligation or reimbursement or other
 contract with any person and the costs and expenses of the
 establishment, administration, and operation of the district and
 the district's costs or share of the costs or revenue of an
 improvement project or district contractual obligation or
 indebtedness by:
 (1)  the imposition of an ad valorem tax or an
 assessment, user fee, concession fee, or rental charge; or
 (2)  any other revenue or resources of the district,
 including bond proceeds, or other revenue received under an
 agreement with a municipality, including revenue from a tax
 increment reinvestment zone created by the municipality.
 Sec. 3897.254.  ASSESSMENTS.  (a)  The district may impose an
 assessment on property in the district to pay the cost or the cost
 of maintenance of any authorized district improvement 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)  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:
 (1)  are a first and prior lien against the property
 assessed; and
 (2)  are superior to any other lien or claim other than
 a lien or claim for county, school district, or municipal ad valorem
 taxes.
 (c)  The lien of an assessment against property runs with the
 land.  The portion of an assessment payment obligation that has not
 yet come due is not eliminated by the foreclosure of an ad valorem
 tax lien, and any purchaser of property in a foreclosure of an ad
 valorem tax lien takes the property subject to the assessment
 payment obligations that have not yet come due and to the lien and
 terms of the lien's payment under the applicable assessment
 ordinance or order.
 (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.
 Sec. 3897.255.  IMPACT FEES; EXEMPTION. (a) The district
 may impose an impact fee on property in the district, including an
 impact fee on residential or commercial property, only in the
 manner provided by Subchapter A, Chapter 372, or Subchapter F,
 Chapter 375, Local Government Code, for a municipality or county.
 (b)  An impact fee for residential property must be for the
 limited purpose of providing capital funding for:
 (1)  public water and wastewater facilities;
 (2)  drainage and storm water facilities; and
 (3)  streets and alleys.
 (c)  The district may not impose an impact fee on the
 property, including equipment and facilities, of a public utility
 provider in the district.
 Sec. 3897.256.  STORM WATER USER CHARGES.  The district may
 establish user charges related to the operation of storm water
 facilities, including the regulation of storm water for the
 protection of water quality in the district.
 Sec. 3897.257.  NONPOTABLE WATER USER CHARGES.  The district
 may establish user charges for the use of nonpotable water for
 irrigation purposes, subject to approval of the governing body of
 the municipality in which the user is located.
 Sec. 3897.258.  COSTS FOR IMPROVEMENT PROJECTS.  The
 district may undertake separately or jointly with other persons,
 including a municipality or county in which the district is
 located, all or part of the cost of an improvement project,
 including an improvement project:
 (1)  for improving, enhancing, and supporting public
 safety and security, fire protection and emergency medical
 services, and law enforcement in and adjacent to the district; or
 (2)  that confers a general benefit on the entire
 district or a special benefit on a definable part of the district.
 Sec. 3897.259.  RESIDENTIAL PROPERTY NOT EXEMPT. Section
 375.161, Local Government Code, does not apply to the district.
 [Sections 3897.260-3897.300 reserved for expansion]
 SUBCHAPTER E.  TAXES AND BONDS
 Sec. 3897.301.  PROPERTY TAX AUTHORIZED.  The district may
 impose an ad valorem tax on all taxable property in the district,
 including industrial, commercial, and residential property, to:
 (1)  pay for an improvement project of the types
 authorized by Section 52, Article III, and Section 59, Article XVI,
 Texas Constitution; or
 (2)  secure the payment of bonds issued for a purpose
 described by Subdivision (1).
 Sec. 3897.302.  MAINTENANCE AND OPERATION TAX; ELECTION.
 (a) The district may impose a tax for maintenance and operation
 purposes, including for:
 (1)  planning, constructing, acquiring, maintaining,
 repairing, and operating all improvement projects, including land,
 plants, works, facilities, improvements, appliances, and equipment
 of the district; and
 (2)  paying costs of services, engineering and legal
 fees, and organization and administrative expenses.
 (b)  The district may not impose a maintenance and operation
 tax unless the tax is approved by a majority of the district voters
 voting at an election held for that purpose.  The proposition in a
 maintenance and operation tax election may be for a specific
 maximum rate or for an unlimited rate. If a maximum tax rate is
 approved, the board may impose the tax at any rate that does not
 exceed the approved rate.
 (c)  A maintenance and operation tax election may be held at
 the same time and in conjunction with any other district election.
 The election may be called by a separate election order or as part
 of any other election order.
 Sec. 3897.303.  USE OF SURPLUS MAINTENANCE AND OPERATION
 MONEY. If the district has maintenance and operation tax money that
 is not needed for the purposes for which it was collected, the money
 may be used for any authorized purpose.
 Sec. 3897.304.  TAX ABATEMENT.  The district may enter into a
 tax abatement agreement in accordance with the general laws of this
 state authorizing and applicable to a tax abatement agreement by a
 municipality.
 Sec. 3897.305.  BONDS AND OTHER OBLIGATIONS; MUNICIPAL
 APPROVAL. (a) The district by competitive bid or negotiated sale
 may issue bonds, notes, or other obligations payable wholly or
 partly from ad valorem taxes, future bond proceeds, or assessments
 in the manner provided by Subchapter A, Chapter 372, or 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, including a bond anticipation note, certificate of
 participation or other instrument evidencing a proportionate
 interest in payments to be made by the district, or any other type
 of obligation.
 (c)  In addition to the sources of money described by
 Subchapter A, Chapter 372, and 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 system or improvement revenue or from any other
 source, including future bond proceeds.
 Sec. 3897.306.  BOND MATURITY. Bonds may mature not more
 than 40 years from their date of issue.
 Sec. 3897.307.  TAXES FOR BONDS AND OTHER OBLIGATIONS;
 ELECTION. (a) At the time bonds or other obligations payable
 wholly or partly from ad valorem taxes are issued:
 (1)  the board shall impose a continuing direct annual
 ad valorem tax, without limit as to rate or amount, for each year
 that all or part of the bonds are outstanding; and
 (2)  the district annually shall impose an ad valorem
 tax on all taxable property in the district in an amount sufficient
 to:
 (A)  pay the interest on the bonds or other
 obligations as the interest becomes due;
 (B)  create a sinking fund for the payment of the
 principal of the bonds or other obligations when due or the
 redemption price at any earlier required redemption date; and
 (C)  pay the expenses of imposing the taxes.
 (b)  Bonds or other obligations that are secured by and
 payable from ad valorem taxes may not be issued unless the bonds and
 the imposition of the taxes are approved by a majority of the
 district voters voting at an election held for that purpose.
 (c)  The district shall hold an election required by this
 section in the manner provided by Chapter 54, Water Code, and the
 Election Code.
 (d)  If the district issues bond anticipation notes payable
 from future bond proceeds that are payable wholly or partly from an
 ad valorem tax, the bonds must have been previously approved at an
 election and meet the requirements of this section.
 Sec. 3897.308.  BONDS NOT SUBJECT TO JURISDICTION OR
 SUPERVISION OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. The
 district's bonds and other securities are not subject to the
 jurisdiction or supervision of the Texas Commission on
 Environmental Quality under Chapter 49, Water Code, Chapter 375,
 Local Government Code, or any other law.
 [Sections 3897.309-3897.350 reserved for expansion]
 SUBCHAPTER F.  DISSOLUTION
 Sec. 3897.351.  DISSOLUTION BY MUNICIPAL ORDINANCE. (a)
 The largest municipality in which the district is located may
 dissolve the district by ordinance.
 (b)  The municipality may not dissolve the district until the
 district's outstanding indebtedness or contractual obligations
 that are payable from ad valorem taxes have been repaid or
 discharged.
 (c)  The municipality may not dissolve the district until
 each agreement under Section 3897.251 has been executed and the
 district's performance under the agreement has been fulfilled,
 including any right or obligation the district has to reimburse a
 developer or owner for the costs of improvement projects.
 Sec. 3897.352.  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 ad valorem taxes, the municipality in which the
 project that generated the revenue is located shall succeed to the
 rights and obligations of the district regarding enforcement and
 collection of the assessments or other revenue.
 (b)  The municipality 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 municipality to refund the outstanding
 bonds or obligations.
 Sec. 3897.353.  ASSUMPTION OF ASSETS AND LIABILITIES. (a)
 After the municipality dissolves the district, the municipality
 assumes the obligations of the district, including any bonds or
 other indebtedness payable from assessments or other district
 revenue.
 (b)  If the municipality dissolves the district, the board
 shall transfer ownership of all district property to the
 municipality in which the property is located, or if the property is
 not located in a municipality, to the county in which the property
 is located.
 SECTION 2.  The district shall include the following land,
 described by metes and bounds as follows:
 All that certain tract or parcel of land lying and being
 situate in the City of Nacogdoches, Nacogdoches County, Texas on
 the SAMUEL MARSHALL SURVEY, A-365, being part of a 98.4 acre tract
 described as 1st Tract of Second Tract, part of a 34.1 acre tract
 described as Third Tract, part of a 7.111 acre tract described as
 Fifth Tract, and part of a 13.592 acre tract described as Seventh
 Tract in a deed from C.S. Jones, et ux, to Lone Star Breeder Farm,
 Inc., dated January 24, 1958, recorded in Volume 272, Page 359 of
 the DRNCT, and part of a 240.7 acre tract described as First Tract
 in a deed from Christian Medical Foundation, Inc., to Lone Star
 Breeder Farm, Inc., recorded in Volume 334, Page 122 of the DRNCT,
 and more particularly described as follows:
 BEGINNING at a 1-1/2" iron pipe found at the base of a fence
 corner post for the SWC of the Kenbrook North Addition, recorded in
 Volume 3, Page 5-7 of the Plat Records of Nacogdoches County, Texas
 (PRNCT), the NWC of the 13.592 acre tract, and in the EBL of the 98.4
 acre tract;
 THENCE N 86°12'34" E (called N 86°45' E in 272/359 and N
 89°36'53" E in 3/5-7 PRNCT) with the NBL of the 13.592 acre tract and
 the SBL of Kenbrook North Addition, at 286.9 feet pass a point 1.7
 feet south of a 3/4" iron rod found, at 406.6 feet pass a point 0.3
 feet north of a 1/2" iron rod found, at 525.6 feet pass a point 1.4
 feet south of a 3/4" iron rod found, at 766.6 feet pass a point 1.0
 feet south of a 3/4" iron pipe found, at 886.6 feet pass a point 0.5
 feet south of a 5/8" iron rod found, and in all 992.29 feet (called
 1119.4' in 272/359 and 994.65' in 3/5-7 PRNCT) to a 2" iron pipe
 found for angle corner in the SBL of Kenbrook North Addition, the
 occupied NEC of the 13.592 acre tract, the NWC of a 11.3 acre tract
 described as Tract Two in a deed from Texas Service Life Insurance
 Company to Lyle Thorstenson, et ux, dated November 4, 1992,
 recorded in Volume 828, Page 30 of the DRNCT;
 THENCE S 06°42'53" W (called S 10° W in 272/359 and S 11° W in
 828/30) with the occupied EBL of the 13.592 acre tract and the WBL
 of the 11.3 acre tract, at 362.61 feet pass a 3/8" iron rod found for
 the SWC of the 11.3 acre tract and the NWC of a 10.39 acre tract
 described in a deed from Tom Jones to Charles Logan, et ux, dated
 July 22, 1966, recorded in Volume 337, Page 372 of the DRNCT, and in
 all 382.11 feet to a point for corner in the centerline of a branch
 and the WBL of the 10.39 acre tract;
 THENCE with the meanders of the centerline of said branch as
 follows:
 1.  S 82°09'36" W, 50.72 feet;  2. S 48°54'39" W, 35.18 feet;
 3. S 34°22'24" W, 29.53 feet;  4. S 74°58'24" W, 18.52 feet;
 5. S 49°38'26" W, 43.35 feet;  6. S 00°39'30" W, 39.58 feet;
 7. S 55°24'09" W, 48.03 feet;  8. S 04°28'22" W, 45.81 feet;
 9. S 56°30'54" W, 15.88 feet;  10. N 69°22'31" W, 46.25 feet;
 11. S 55°31'51" W, 61.21 feet;  12. S 70°31'12" W, 100.13 feet;
 13. S 85°50'02" W, 34.33 feet;  14. N 58°03'58" W, 51.81 feet;
 15. S 79°38'09" W, 59.16 feet;  16. N 79°34'50" W, 57.07 feet;
 17. N 62°50'24" W, 44.62 feet;  18. N 70°59'09" W, 29.20 feet;
 19. N 46°17'24" W, 22.76 feet;  20. S 46°05'11" W, 106.77 feet;
 21. N 52°48'49" W, 76.41 feet;  22. N 24°49'49" W, 32.59 feet;
 23. N 68°46'25" W, 89.22 feet;  24. N 55°51'25" W, 44.31 feet;
 25. N 60°43'07" W, 63.64 feet;  26. N 83°43'02" W, 76.64 feet;
 27. N 39°08'20" W, 45.76 feet;  28. S 64°00'08" W, 55.43 feet;
 29. S 78°15'18" W, 51.35 feet;  30. N 65°17'01" W, 40.20 feet;
 31. N 51°25'37" W, 34.71 feet;  32. S 53°55'17" W, 95.66 feet;
 33. S 64°46'48" W, 56.59 feet;  34. S 78°49'38" W, 60.02 feet;
 35. N 84°08'55" W, 71.77 feet;  36. N 40°23'53" W, 27.74 feet;
 37. N 60°00'50" W, 58.49 feet;  38. S 89°23'46" W, 38.39 feet;
 39.  S 51°47'35" W, 33.00 feet;  40. S 83°31'21" W, 29.43 feet;
 41.  S 41°10'09" W, 14.48 feet;  42. S 83°39'36" W, 22.67 feet;
 43. N 20°02'08" W, 16.80 feet;  44. N 08°24'01" W, 14.46 feet;
 45.  N 65°25'57" W, 53.59 feet;  46. N 38°34'52" W, 33.98 feet;
 47.  N 76°14'16" W, 54.42 feet;  48. N 81°16'42" W, 44.12 feet;
 49.  N 60°00'12" W, 99.63 feet;  50. N 72°59'23" W, 68.62 feet;
 51.  N 68°45'56" W, 80.15 feet;  52. N 43°13'00" E, 40.35 feet;
 53.  N 78°25'21" W, 49.93 feet;  54. N 59°59'25" W, 60.28 feet;
 55.  N 49°49'20" W, 69.27 feet;  56.  N 69°07'16" W, 53.13 feet
 to a point for corner in the EBL of Lot 2, University Park
 Subdivision, recorded in Volume 5, Page 33 of the PRNCT, from which
 a 1/2" iron rod found for witness bears N 01°12'28" E, 30.00 feet;
 THENCE N 01°12'28" E, 140.44 feet (called N 04°39'37" E in 5/33
 PRNCT) with the EBL of Lot 2 to a 1" iron pipe found for corner, from
 which a Tallow snag bears S 54~ W, 2.0 feet;
 THENCE N 88°44'28" W (called N 85°23'52" W in 5/33 PRNCT),
 75.00 feet with the NBL of Lot 2 to a 1/2" iron rod found for corner;
 THENCE N 01°10'22" E, 345.85 feet to a 1/2" iron rod set for
 corner in the SBL of a 4.145 acre tract described in a deed from Lone
 Star Breeder Farm, Inc., to the City of Nacogdoches, dated July 16,
 2007, recorded in Volume 2693, Page 177 of the DRNCT, said 4.145
 acre tract being the right-of-way for Maroney Drive;
 THENCE with the SBL of the 4.145 acre tract as follows:
 1.  S 88°49'38" E, 189.84 feet to a 1/2" iron rod set for
 corner;
 2.  Northeasterly, 399.38 feet with a tangent curve to the
 left having a radius of 527.35 feet, a central angle of 43°23'31",
 and a chord of N 69°28'36" E, 389.90 feet to a 1/2" iron rod set for
 corner;
 3.  N 86°47'25" E, 25.99 feet to a 1/2" iron rod set for
 corner;
 4.  N 41°47'25" E, 73.31 feet to a 1/2" iron rod set for
 corner;
 5.  N 03°12'35" W, 21.92 feet to a 1/2" iron rod set for
 corner;
 6.  N 41°47'25" E, 151.81 feet to a 1/2" iron rod found for
 corner;
 7.  Northeasterly, 388.82 feet with a tangent curve to the
 right, having a radius of 472.65 feet, a central angle of 47°08'02",
 and a chord of N 65°21'26" E, 377.95 feet to a 1/2" iron rod found
 for corner;
 8.  N 88°55'28" E, 37.19 feet to a 1/2" iron rod set for
 corner;
 9.  S 46°04'33" E, 21.92 feet to a 1/2" iron rod set for
 corner;
 10.  N 88°55'28" E, 73.31 feet to a 1/2" iron rod set for
 corner;
 11.  N 43°55'27" E, 21.92 feet to a 1/2" iron rod set for
 corner;
 12.  N 88°55'28" E, at 296.5 feet pass a wire fence, and in all
 304.32 feet to an "X" found chiseled in a concrete drive at the most
 easterly SEC of the 4.145 acre tract, in the WBL of Kenbrook North
 Addition and the EBL of the 240.7 acre tract;
 THENCE S 07°05'37" W (called S 10° W), at 141.3 feet pass a
 point 1.1 feet east of a 3/8" iron rod, at 240.2 feet pass a point
 0.6 feet east of a 1/2" iron rod, at 360.2 feet pass a point 0.7 feet
 east of a 1/2" pipe, and in all 876.83 feet to the place of BEGINNING
 containing within these calls 44.34 acres.
 SECTION 3.  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, 2011.

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