84R6009 KJE-F
By: Burns H.B. No. 3605
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Joshua Farms Municipal Management
District No. 2; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
an ad valorem tax, assessments, or fees.
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 3929 to read as follows:
CHAPTER 3929. JOSHUA FARMS MUNICIPAL MANAGEMENT DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3929.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Cleburne, Texas.
(3) "County" means Johnson County, Texas.
(4) "Director" means a board member.
(5) "District" means the Joshua Farms Municipal
Management District No. 2.
Sec. 3929.002. CREATION AND NATURE OF DISTRICT. The Joshua
Farms Municipal Management District No. 2 is a special district
created under Sections 52 and 52-a, Article III, and Section 59,
Article XVI, Texas Constitution.
Sec. 3929.003. 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 the city 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.
Sec. 3929.004. 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 district is created to accomplish the purposes of a
municipal management district as provided by general law and
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution.
(d) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(e) 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 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.
(f) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
Sec. 3929.005. 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 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 contract;
(3) authority to borrow money or issue bonds or other
obligations described by Section 3929.253 or to pay the principal
and interest of the bonds or other obligations;
(4) right to impose or collect an assessment, tax, or
any other revenue; or
(5) legality or operation.
Sec. 3929.006. 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 under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code; or
(3) an enterprise zone created under Chapter 2303,
Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city 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:
(1) the purposes permitted for money granted to a
corporation under Section 380.002(b), Local Government Code; and
(2) any other district purpose, including the right to
pledge the money as security for any bonds or other obligations
issued by the district under Section 3929.253.
(c) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city may determine the percentage
of the property in the zone that may be used for residential
purposes and is not subject to the limitations provided by Section
311.006, Tax Code.
Sec. 3929.007. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The initial 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. 3929.008. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICT LAW. Except as provided by this chapter, Chapter 375,
Local Government Code, applies to the district.
Sec. 3929.009. CONSTRUCTION OF CHAPTER. This chapter shall
be liberally construed in conformity with the findings and purposes
stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3929.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 3929.053, directors serve
staggered four-year terms, with two or three directors' terms
expiring June 1 of each odd-numbered year.
Sec. 3929.052. BOARD MEETINGS. The board shall hold
meetings at a place accessible to the public.
Sec. 3929.053. INITIAL DIRECTORS. (a) The initial board
consists of:
Pos. No. Name of Director
1 David Rex
2 Barb Levis
3 John Tatum
4 Charles Collie
5 Stephanie Fine
(b) Initial directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 3929.007; 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 3929.007 and the terms of the initial directors have
expired, successor initial 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 3929.007; 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
according to the most recent certified tax appraisal rolls for the
county may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
successor initial directors the five persons named in the petition.
The commission shall appoint as successor initial directors the
five persons named in the petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3929.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3929.102. 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. 3929.103. 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. 3929.104. ROAD DISTRICT POWERS. 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 Chapters 257 and 441, Transportation
Code.
Sec. 3929.105. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 3929.106. CONTRACT POWERS. The district may contract
with a governmental or private entity, on terms determined by the
board, to carry out a power or duty authorized by this chapter or to
accomplish a purpose for which the district is created.
Sec. 3929.107. ECONOMIC DEVELOPMENT. (a) The district may
engage in activities that accomplish the economic development
purposes of the district.
(b) The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(c) The district may create economic development programs
and exercise the economic development powers that:
(1) Chapter 380, Local Government Code, provides to a
municipality; and
(2) Subchapter A, Chapter 1509, Government Code,
provides to a municipality.
Sec. 3929.108. ADDING OR REMOVING TERRITORY. As provided
by Subchapter J, Chapter 49, Water Code, the board may add territory
inside the boundaries of the city or the extraterritorial
jurisdiction of the city to the district or remove territory inside
the boundaries of the city or the extraterritorial jurisdiction of
the city from the district, except that:
(1) the addition or removal of the territory must be
approved by the city;
(2) the addition or removal may not occur without
petition by the owners of the territory being added or removed; and
(3) territory may not be removed from the district if
bonds or other obligations of the district payable wholly or partly
from taxes or assessments assessed on the territory are
outstanding.
Sec. 3929.109. NO TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
Sec. 3929.110. EMINENT DOMAIN. (a) Section 375.094, Local
Government Code, does not apply to the district.
(b) The district may acquire by condemnation any land,
easements, or other property inside or outside the district's
boundaries or the boundaries of the certificated service area of a
water supply corporation necessary for water, sanitary sewer, storm
drainage, flood drainage, or control or roadway purposes, or for
any other of the district's projects or purposes, and may elect to
condemn either the fee simple title or a lesser property interest.
(c) The right of eminent domain shall be exercised in the
manner provided by Chapter 21, Property Code, except that the
district is not required to give bond for appeal or bond for costs
in any condemnation suit or other suit to which it is a party and is
not required to deposit more than the amount of any award in any
suit.
(d) The district may not use the power of eminent domain to
condemn land for the purpose of acquiring rights to underground
water or acquiring water or water rights.
SUBCHAPTER C-1. IMPROVEMENT PROJECTS AND SERVICES
Sec. 3929.151. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service, including water, wastewater, drainage, and roadway
projects or services, using any money available to the district, or
contract with a governmental or private entity and reimburse that
entity for the provision, design, construction, acquisition,
improvement, relocation, operation, maintenance, or financing of
an improvement project, service, or cost, for the provision of
credit enhancement, or for any cost of operating or maintaining the
district or the issuance of district obligations authorized under
this chapter, Chapter 372 or 375, Local Government Code, or Chapter
49 or 54, Water Code.
Sec. 3929.152. BOARD DETERMINATION REQUIRED. The district
may not undertake an improvement project unless the board
determines the project is necessary to accomplish a public purpose
of the district.
Sec. 3929.153. LOCATION OF IMPROVEMENT PROJECT. An
improvement project may be located or provide service inside or
outside the district.
Sec. 3929.154. IMPROVEMENT PROJECT AND SERVICE IN DEFINABLE
AREA. The district may undertake an improvement project or service
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; or
(2) Chapter 375, Local Government Code.
Sec. 3929.155. CONTRACTS. A contract to design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project is considered a contract for a good or service
under Subchapter I, Chapter 271, Local Government Code.
SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3929.201. DIVISION OF DISTRICT; PREREQUISITE. The
district, including territory added to the district under Section
3929.108, may be divided into two or more new districts only if the
district has no outstanding bonded debt. Territory previously
added to the district under Section 3929.108 may be included in a
new district.
Sec. 3929.202. LAW APPLICABLE TO NEW DISTRICT. This
chapter applies to any new district created by division of the
district, and a new district has all the powers and duties of the
district.
Sec. 3929.203. DIVISION PROCEDURES. (a) The board, on its
own motion or on receipt of a petition signed by an owner of real
property in the district, may adopt an order proposing to divide the
district.
(b) If the board decides to divide the district, the board
shall, subject to the city's resolution or ordinance:
(1) set the terms of the division, including names for
the new districts and a plan for the payment or performance of any
outstanding district obligations;
(2) prepare a metes and bounds description for each
proposed district; and
(3) appoint initial directors for each new district.
Sec. 3929.204. NOTICE AND RECORDING OF ORDER. Not later
than the 30th day after the date of an order dividing the district,
the district shall:
(1) file the order with the Texas Commission on
Environmental Quality; and
(2) record the order in the real property records of
the county.
Sec. 3929.205. CONTRACT AUTHORITY OF NEW DISTRICTS. (a)
Except as provided by Subsection (b), the new districts may
contract with each other for any matter the boards of the new
districts consider appropriate, including the joint construction
or financing of a utility or roadway improvement and the joint
financing of a maintenance obligation.
(b) The new districts may not contract with each other for
water and wastewater services. This subsection does not affect the
right to contract described by Subsection (a).
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3929.251. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of the district's money.
Sec. 3929.252. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may undertake and provide an improvement project or
service authorized by this chapter using any money available to the
district.
Sec. 3929.253. BORROWING MONEY; OBLIGATIONS. (a) The
district may borrow money for a district purpose, including the
acquisition or construction of improvement projects authorized by
this chapter and the reimbursement of a person who develops or owns
an improvement project authorized by this chapter, by issuing
bonds, notes, time warrants, or other obligations, or by entering
into a contract or other agreement payable wholly or partly from an
assessment, a contract payment, a grant, revenue from a zone
created under Chapter 311 or 312, Tax Code, other district revenue,
or a combination of these sources.
(b) An obligation described by Subsection (a):
(1) may bear interest at a rate determined by the
board; and
(2) may include a term or condition as determined by
the board.
Sec. 3929.254. CERTAIN OBLIGATIONS NOT SUBJECT TO APPROVAL
OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. Section 375.208,
Local Government Code, and Section 49.181, Water Code, do not apply
to the district.
Sec. 3929.255. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district may issue, without an election, bonds and other
obligations payable from any source other than ad valorem taxation.
(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. 3929.256. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election, the district may impose an operation and
maintenance tax 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. 3929.257. 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.
Sec. 3929.258. ASSESSMENTS. (a) Except as provided by
Subsection (b), the district may impose an assessment on property
in the district to pay for an obligation described by Section
3929.253 or an improvement project authorized by Section 3929.151
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) The district may not impose an assessment on a
municipality, county, or other political subdivision.
Sec. 3929.259. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Sec. 3929.260. NO IMPACT FEES. The district may not impose
an impact fee.
SUBCHAPTER F. DISSOLUTION
Sec. 3929.301. DISSOLUTION BY CITY. (a) The city may
dissolve the district by ordinance.
(b) The city may not dissolve the district until:
(1) the district's outstanding debt or contractual
obligations have been repaid or discharged; or
(2) the city agrees to succeed to the rights and
obligations of the district, including an obligation described by
Section 3929.303.
Sec. 3929.302. COLLECTION OF TAXES, ASSESSMENTS, AND OTHER
REVENUE. (a) If the dissolved district has bonds or other
obligations outstanding secured by and payable from taxes,
assessments, or other revenue, the city succeeds to the rights and
obligations of the district regarding enforcement and collection of
the taxes, assessments, or other revenue.
(b) The city shall have and exercise all district powers to
enforce and collect the taxes, assessments, or other revenue to
pay:
(1) the bonds or other obligations when due and
payable according to their terms; or
(2) ad valorem tax bonds, special revenue or
assessment bonds, or other obligations issued by the city to refund
the outstanding bonds or obligations of the district.
Sec. 3929.303. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
After the city dissolves the district, the city assumes the
obligations of the district, including any contractual obligations
or bonds or other debt payable from taxes, assessments, or other
district revenue.
(b) If the city dissolves the district, the board shall
transfer ownership of all district property to the city.
SECTION 2. The Joshua Farms Municipal Management District
No. 2 initially includes all the territory contained in the
following area:
BEING a tract of land situated in the B.B.B. & C.R.R. Co. Survey,
Abstract Number 103, the A.J. Tucker Survey, Abstract Number 833,
and the William P. King Survey, Abstract Number 489, Johnson
County, Texas and being a portion of that tract of land described by
deed Joshua Land Farm LLC., recorded in Instrument Number 22522,
County Records, Johnson County, Texas:
BEGINNING at the northwest corner of said Joshua Land Farm tract, in
the south right-of-way line of FM 917 (a 80 foot right-of-way);
THENCE N 89°58'32"E, 1768.76 feet with said south right-of-way;
THENCE S 01°19'08"E, 1991.93 feet;
THENCE N 89°05'57"E, 3989.06 feet;
THENCE N 89°16'48"E, 830.50 feet to the east line of said Joshua Land
Farm tract;
THENCE S 00°04'27"W, 1665.41 feet with said east line;
THENCE S 89°28'44"W, 3093.70 feet with said east line;
THENCE S 00°03'03"W, 1465.70 feet with said east line;
THENCE S 68°17'01"W, 1321.19 feet departing said east line;
THENCE N 56°14'59"W, 442.41 feet;
THENCE N 33°45'00"W, 3383.50 feet to the west line of said Joshua
Land Farm tract;
THENCE N 01°24'23"W, 2507.29 feet with said west line to the Point of
Beginning and containing 17,649,096 square feet or 405 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,
lieutenant governor, and 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 have been
fulfilled and accomplished.
SECTION 4. (a) Section 3929.110, 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 3929, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 3929.110 to read as follows:
Sec. 3929.110. 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. This Act takes effect September 1, 2015.