84R5051 GRM-F By: Parker H.B. No. 2501 A BILL TO BE ENTITLED AN ACT relating to the powers and duties of the Shale Creek Water Control and Improvement District; providing authority to issue bonds, impose a tax, and levy assessments for roadway purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle I, Title 6, Special District Local Laws Code, is amended by adding Chapter 9058 to read as follows: CHAPTER 9058. SHALE CREEK WATER CONTROL AND IMPROVEMENT DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 9058.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City of Fort Worth, Texas. (3) "Director" means a board member. (4) "District" means the Shale Creek Water Control and Improvement District. Sec. 9058.002. NATURE OF DISTRICT. (a) The district is a water control and improvement district with road district powers created under Section 59, Article XVI, Texas Constitution. (b) The district created as North Fort Worth Water Control and Improvement District No. 1 of Denton and Wise Counties is renamed the Shale Creek Water Control and Improvement District. Sec. 9058.003. APPLICABILITY OF OTHER LAW. (a) Except as otherwise provided by this chapter, the following laws apply to the district: (1) Chapters 49 and 51, Water Code; and (2) Chapter 257, Transportation Code, and other general laws applicable to road districts created under Section 52, Article III, Texas Constitution, to the extent those provisions can apply to the district. (b) If a provision of general law relating to road districts is in conflict or inconsistent with this chapter or Chapter 49 or 51, Water Code, this chapter prevails. SUBCHAPTER B. POWERS AND DUTIES Sec. 9058.051. 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 in aid of or incidental to those roads, including: (1) bridges; (2) drainage; (3) landscaping; (4) lights, signs, or signals; and (5) sidewalks or trails. Sec. 9058.052. JOINT ROAD PROJECTS. (a) A district may contract with a state agency, political subdivision, or corporation created under Chapter 431, Transportation Code, for a joint road project. (b) The contract may: (1) provide for joint payment of project costs; and (2) require the state agency, political subdivision, or corporation to design, construct, or improve a project, including landscaping, as provided by the contract. Sec. 9058.053. APPROVAL OF ROAD PROJECT. (a) The district may not undertake a road project authorized by Section 9058.051, 9058.052, or 9058.055 unless: (1) the city has approved the plans and specifications of the road project, if the city or district will operate and maintain the road; or (2) the Texas Transportation Commission has approved the plans and specifications of the road project, if the state will operate and maintain the road. (b) Except as provided by Subsection (a), the district is not required to obtain approval from the Texas Transportation Commission to design, acquire, construct, finance, issue bonds for, improve, or convey a road project. Sec. 9058.054. ROAD CONTRACTS. The district may enter into a contract for a road project in the same manner as a road district under Chapter 257, Transportation Code, except that competitive bidding for a road project contract is governed by Subchapter I, Chapter 49, Water Code. Sec. 9058.055. IMPROVEMENT PROJECT AND SERVICE IN DEFINABLE AREA. The district may undertake an improvement project or service authorized under Section 9058.051 that confers a special benefit on a definable area in the district and levy and collect a special assessment on benefited property in the district in accordance with: (1) Chapter 372, Local Government Code; (2) Chapter 375, Local Government Code; or (3) both chapters. SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS Sec. 9058.101. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 49.107, Water Code, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code, except that Section 49.107(f), Water Code, does not apply to reimbursements for a project constructed or acquired under Section 9058.051. (b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. Sec. 9058.102. TAX TO REPAY BONDS. The district may impose a tax to pay the principal of or interest on bonds issued under Section 9058.151. Sec. 9058.103. ASSESSMENT TO REPAY BONDS. The district may levy a special assessment to pay the principal of and interest on bonds issued under Section 9058.151. SUBCHAPTER D. BONDS AND OTHER OBLIGATIONS Sec. 9058.151. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS FOR ROAD PROJECTS. (a) The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, special assessments, impact fees, revenue, grants, or other district money, or any combination of those sources, to pay for a road project authorized by Section 9058.051, 9058.052, or 9058.055. (b) 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. (c) 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. (d) The district may not exercise the power to issue bonds or other obligations payable wholly or partly from ad valorem taxes or special assessments to finance projects authorized by Section 9058.051, 9058.052, or 9058.055 until the city adopts an ordinance or resolution consenting to the exercise of that power. (e) Sections 49.181 and 49.182, Water Code, do not apply to a project authorized by Section 9058.051, 9058.052, or 9058.055, or to bonds issued for the project. SECTION 2. The Shale Creek Water Control and Improvement District retains all rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act. SECTION 3. (a) The following are validated and confirmed in all respects: (1) the creation of the North Fort Worth Water Control and Improvement District No. 1 of Denton and Wise Counties; (2) the renaming of the North Fort Worth Water Control and Improvement District No. 1 of Denton and Wise Counties as the Shale Creek Water Control and Improvement District; and (3) any act or proceeding of the district, including an election, not excepted by this section and taken not more than three years before the effective date of this Act, effective as of the date on which the act or proceeding occurred. (b) This section does not apply to: (1) an act, proceeding, director, other official, bond, or other obligation the validity of which or of whom is the subject of litigation that is pending on the effective date of this Act; or (2) an act or proceeding that, under a statute of this state or the United States, was a misdemeanor or felony at the time the act or proceeding occurred. SECTION 4. (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 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, 2015.