83R16968 PMO-F By: Orr H.B. No. 3926 A BILL TO BE ENTITLED relating to the creation of the Chisholm Trails Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, or 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 8483 to read as follows: CHAPTER 8483. CHISHOLM TRAILS MUNICIPAL UTILITY DISTRICT NO. 1 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8483.001. 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 Chisholm Trails Municipal Utility District No. 1. Sec. 8483.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8483.003. 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. 8483.004. CONSENT OF MUNICIPALITY REQUIRED. (a) The temporary directors may not hold an election under Section 8483.003 until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has: (1) consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district; and (2) entered into a development agreement with the owner or owners of a majority of the assessed value of the real property within the district. (b) If a development agreement described by Subsection (a) has not been executed before September 1, 2016: (1) the temporary directors may not call a confirmation election under Section 8483.003; (2) the district is dissolved; and (3) this chapter expires September 1, 2017. Sec. 8483.005. 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. 8483.006. 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. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8483.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8483.052, directors serve staggered four-year terms. Sec. 8483.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Justin Holt; (2) Michael Langford; (3) Jacob Percifull; (4) Matthew Scott; and (5) Patrick Rose IV. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8483.003; 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 8483.003 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 8483.003; 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. SUBCHAPTER C. POWERS AND DUTIES Sec. 8483.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8483.102. 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. 8483.103. 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. 8483.104. 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. 8483.105. COMPLIANCE WITH MUNICIPAL REGULATIONS. Any water, sanitary sewer, road, drainage, or other infrastructure or public facilities constructed, acquired, improved, maintained, or operated by the district shall comply with any subdivision or other applicable regulations of any municipality in whose corporate limits or extraterritorial jurisdiction the infrastructure or public facilities are located unless other regulations are specified in a development agreement between the district and the municipality. Sec. 8483.106. 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. 8483.107. DIVISION OF DISTRICT. (a) The original district or any lands added to the district may be divided into two or more new districts in the manner specified by Section 53.029(b), Water Code, only if the district: (1) has no outstanding bonded debt; and (2) is not imposing ad valorem taxes. (b) The division procedure is prescribed by Sections 53.030 through 53.041, Water Code. (c) Any new district created by the division of the district has all the powers and duties of the district and is subject to the limitations and conditions of this chapter. (d) At the time of creation, any new district created by the division of the district may not contain any land that is not contiguous to the area described by Section 2 of the Act enacting this chapter. (e) A division of the district may not occur until each home-rule municipality in whose corporate limits or extraterritorial jurisdiction the district or any proposed district is located has adopted a resolution consenting to the division. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8483.151. 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 8483.153. (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. 8483.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8483.151, 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. 8483.153. 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. SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8483.201. 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. 8483.202. 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. 8483.203. 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. SECTION 2. The Chisholm Trails Municipal Utility District No. 1 initially includes all the territory contained in the following area: METES AND BOUNDS DESCRIPTION HMP Ranch, Ltd - Burleson ETJ - Tract 1 BEING a 81.457 acre tract of land situated in the H. G. Catlett Survey, Abstract Number 177, Johnson County, Texas and being a portion of the tract of land described in the deed to HMP Ranch Ltd, recorded in Volume 3803, Page 887, Deed Records, Johnson County, Texas and in County Clerk's Document Number D206143824, Deed Records, Tarrant County, Texas, said 81.457 acre tract of land being more particularly described as follows: BEGINNING at the intersection of the monumented southwesterly line of County Road 921 with the westerly right-of-way line of the Burlington Northern Santa Fe Railroad Company (a 100 foot wide right-of-way); THENCE with the westerly right-of-way line of said Burlington Northern Santa Fe Railroad Company, South 09° 40' 29" West a distance of 3350.59 feet; THENCE departing the westerly right-of-way line of said Burlington Northern Santa Fe Railroad Company, North 44° 49' 44" West a distance of 3339.05 feet to a northwesterly line of said HMP Ranch Ltd tract and the southeasterly line of a tract of land described in the deed to Leonel Ochoa and wife, Argelia Ochoa recorded in Volume 1862, Page 233 Deed Records, Johnson County, Texas; THENCE with the northwesterly line of said HMP Ranch Ltd tract and the southeasterly lines of said Ochoa tract, the tract of land described in the deed to Lazaro Duron and wife. Arcelia Duron recorded in Volume 241, Page 579, Deed Records, Johnson County, Texas, the tract of land described in the deed to Oscar S. Lazarsky and Catalina Sanches recorded in Volume 1891, Page 734, Deed Records, Johnson County, Texas, North 45° 17' 02" East a distance of 641.52 feet to theder of the tract of land described in the deed to Ross Senter recorded in Volume 329, Page 28, Deed Records, Johnson County, Texas; THENCE departing said northwesterly line and said southeasterly lines with the southerly lines of said remainder tract, and the tract of land described in the deed to Randall L. Senter et ux Vicki L. Senter recorded in Volume 1360, Page 437, Deed Records, Johnson County, Texas South 45° 30' 56" East a distance of 1,556.15 feet to the most southerly corner of said remaining Ross Senter tract; THENCE continuing with the southeasterly line of said remaining Ross Senter tract the following courses and distances: North 44°27'19" East, a distance of 613.71 feet; North 09°46'11" East, a distance of 540.00 feet; North 54°00'01" East, a distance of 883.07 feet; North 09°40'40" East, a distance of 173.11 feet to the monumented southwesterly line of County Road 921; THENCE departing said northerly and said southeasterly lines with the southwesterly line of said County Road 921, South 45°00'00" East, a distance of 121.67 feet to the POINT OF BEGINNING; Containing a computed area of 3,548,270 square feet or 81.457 acres of land. NOTE: The basis of bearings recited herein is the Texas Coordinate System of 1983, North Central Zone. NOTE: The Surveyor has not abstracted the record title and/or easements of the subject property. The Surveyor prepared this survey without the benefit of a title commitment and assumes no liability for any easements right-of-way dedications or other title matters affecting the subject property. METES AND BOUNDS DESCRIPTION HMP Ranch, Ltd - Burleson ETJ - Tract 2 BEING a 99.976 acre tract of land situated In the H. G. Catlett Survey, Abstract Number 177, Johnson County, Texas and being a portion of the tract of land described in the deed to HMP Ranch Ltd, recorded in Volume 3803, Page 887, Deed Records, Johnson County, Texas and in County Clerk's Document Number D206143824, Deed Records, Tarrant County, Texas, said 99.976 acre tract of land being more particularly described as follows: BEGINNING at the intersection of the approximate centerlines of County Road 921 and County Road 1016; THENCE with an easterly line of said HMP Ranch Ltd tract with the approximate centerline of said County Road 1016, South 45° 26' 19" West a distance of 945.97; THENCE continuing with the easterly line of said HMP Ranch Ltd tract and the approximate centerline of said County Road 1016, South 45° 10' 42" West a distance of 1806.20 feet to the beginning of a non-tangent curve to the left having a radius of 2,250.00 feet, a central angle of 40° 36' 01", and a chord bearing and distance of North 58° 45' 23" West 1561.22 feet; THENCE departing the easterly line of said HMP Ranch Ltd tract and the approximate centerline of said County Road 1016 with said non-tangent curve to the left an arc distance of 1594.37 feet to the end of curve in the common line of the H.G. Catlett Survey, Abstract Number 177 and the H.G. Catlett Survey, Abstract Number 380; THENCE with said common line. North 44° 38' 14" East at a distance of 458.80 feet passing the common south corner of Said H.G. Catlett Survey, Abstract Number 380 and the U. Mendoza Survey, Abstract Number 545, departing the common line of said Catlett Surveys and continuing with the common line of said H. G. Catlett Survey, Abstract Number 177 and said U. Mendoza Survey in all a distance of 3121.47 feet to the north corner of said H.G. Catlett Survey, Abstract Number 177; THENCE continuing with the common line of said H.G. Catlett Survey, Abstract Number 177 and said U. Mendoza Survey, South 45° 04' 23" East, a distance of 1551.14 feet to the POINT OF BEGINNING; Containing a computed area of 4,354,945 square feet or 99.976 acres of land. NOTE: The basis of bearings recited herein is the Texas Coordinate System of 1983, North Central Zone. NOTE: The Surveyor has not abstracted the record title and/or easements of the subject property. The Surveyor prepared this survey without the benefit of a title commitment and assumes no liability for any easements right-of-way dedications or other title matters affecting the subject property. METES AND BOUNDS DESCRIPTION HMP Ranch, Ltd - Burleson ETJ - Tract 3 BEING an 11.905 acre tract of land situated in the U. Mendoza Survey, Abstract Number 545, Johnson County, Texas and being a portion of the tract of land described in the deed to HMP Ranch Ltd, recorded in Volume 3803, Page 887, Deed Records, Johnson County, Texas and in County Clerk's Document Number D206143824, Deed Records, Tarrant County, Texas, said 11.905 acre tract of land being more particularly described as follows: BEGINNING at the most easterly corner of said HMP Ranch Ltd tract, in the approximate centerline of County Road 1011, called in the deed to Texas Land and Investment Company, Inc. recorded in Volume 594, Page 457 to be the most easterly corner of the U. Mendoza Survey and the northwest line of the H.G. Catlett Survey Number; THENCE with an easterly line of said HMP Ranch Ltd tract with the approximate centerline of said County Road 1011, South 44° 43' 45" West a distance of 2555.50 feet to the approximate centerline of County Road 921; THENCE continuing with the easterly line of said HMP Ranch Ltd tract, departing the approximate centerline of said County Road 1011 with the approximate centerline of said County Road 921, North 44° 51' 50" West a distance of 320.46 feet; THENCE departing the approximate centerline of said County Road 921, North 49° 54' 39" East a distance of 2464.99 feet to the northerly line of said HMP Ranch Ltd tract and the south line of the tract of land described in the deed to Bill H. Bridges and Tommy D. Bridges recorded in Volume 2513, Page 124, Deed Records, Johnson County, Texas; THENCE with the common line of said HMP Ranch Ltd tract and said Bridges tract. North 89° 35' 15" East a distance of 138.69 feet to the POINT OF BEGINNING; Containing a computed area of 518,590 square feet or 11.905 acres of land. NOTE: The basis of bearings recited herein is the Texas Coordinate System of 1983, North Central Zone. NOTE: The Surveyor has not abstracted the record title and/or easements of the subject property. The Surveyor prepared this survey without the benefit of a title commitment and assumes no liability for any easements right-of-way dedications or other title matters affecting the subject property. 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 8483, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8483.108 to read as follows: Sec. 8483.108. 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, 2013.