By: King of Parker (Senate Sponsor - Estes) H.B. No. 2912
(In the Senate - Received from the House May 5, 2017;
May 11, 2017, read first time and referred to Committee on
Intergovernmental Relations; May 17, 2017, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 5,
Nays 0, 1 present not voting; May 17, 2017, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 2912 By: Campbell
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the New Fairview Municipal Utility
District No. 1; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
assessments, fees, and 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 7987 to read as follows:
CHAPTER 7987. NEW FAIRVIEW MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7987.001. 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 New Fairview Municipal
Utility District No. 1.
Sec. 7987.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7987.003. 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. 7987.004. CONSENT OF MUNICIPALITY AND DEVELOPMENT
AGREEMENT REQUIRED. (a) The temporary directors may not hold an
election under Section 7987.003, undertake an improvement project,
impose taxes or fees, or issue bonds or otherwise borrow money 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 under Section
212.172, Local Government Code, with an owner or owners of a
majority of the land described by Section 2 of the Act enacting this
chapter.
(b) If a development agreement described by Subsection
(a)(2) has not been executed before March 1, 2019:
(1) the temporary directors may not call a
confirmation election under Section 7987.003;
(2) the district is dissolved; and
(3) this chapter expires March 1, 2020.
Sec. 7987.005. 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. 7987.006. 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.
Sec. 7987.007. AMENDMENT OF CHAPTER. The legislature may
not amend this chapter without the consent of the city given by
ordinance or resolution.
Sec. 7987.008. CITY CONSENT TO CREATION OF DISTRICT. The
city's consent to the creation of the district is not subject to the
limitations on the conditions or other restrictions the city may
place on its consent under Section 42.042, Local Government Code.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7987.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 7987.052, directors serve
staggered four-year terms.
Sec. 7987.052. TEMPORARY DIRECTORS. (a) On or after
September 1, 2017, 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 temporary
directors the five persons named in the petition. The commission
shall appoint as temporary directors the five persons named in the
petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7987.003; or
(2) September 1, 2021.
(c) If permanent directors have not been elected under
Section 7987.003 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 7987.003; 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. 7987.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7987.102. 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. 7987.103. 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. 7987.104. 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. 7987.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
OR RESOLUTION. The district shall comply with all applicable
requirements of any ordinance or resolution that is adopted under
Section 54.016 or 54.0165, Water Code, and that consents to the
creation of the district or to the inclusion of land in the
district.
Sec. 7987.106. CITY REQUIREMENTS. An improvement project
in the district must comply with applicable requirements of the
city, including codes and ordinances, unless a requirement is
specifically waived or superseded by a development agreement
entered into under Section 7987.107 or another agreement with the
city applicable to property located in the district.
Sec. 7987.107. DEVELOPMENT AND OPERATING AGREEMENT
REQUIRED. After the district's board is organized, but before the
district may undertake any improvement project, impose taxes or
fees, or issue bonds or otherwise borrow money, the district must
become a party to and assume all applicable obligations,
requirements, and limitations in the development agreement entered
into between the city and the owner or owners of a majority of land
in the district, including any limitation imposed by the city.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7987.151. 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 7987.153.
(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. 7987.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7987.151, 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. 7987.153. 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. 7987.201. 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. 7987.202. 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. 7987.203. 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 New Fairview Municipal Utility District No.
1 initially includes all the territory contained in the following
area:
BEING A 634.507 ACRES TRACT OF LAND CALLED OUT OF THE
T. CARPENTER SURVEY, ABSTRACT NO. 172 AND THE W.
BRAMLETT SURVEY, ABSTRACT NO. 123, WISE COUNTY, TEXAS:
BEING ALL OF THOSE CERTAIN TRACTS OF LAND AS DESCRIBED
IN VOLUME 155, PAGE 580, & VOLUME 123, PAGE 290, DEED
RECORDS, WISE COUNTY, TEXAS, AND CONTAINING ALL OF
THOSE CERTAIN TRACTS OF LAND AS DESCRIBED IN CLERK FILE
NO. 201600522 & CLERK FILE NO. 201600523, OFFICIAL
RECORDS, WISE COUNTY, TEXAS: BEING FURTHER DESCRIBED
BY METES AND BOUNDS AS FOLLOWS:
BEGINNING AT A SET 1/2"IRON ROD WITH PLASTIC CAP IN THE
EAST LINE OF THE FORT WORTH & DENVER CITY RAILROAD
RIGHT OF WAY, BEING FIFTY FEET EAST OF & PERPENDICULAR
TO THE CENTER OF THE EXISTING RAILROAD LINE, AT THE
NORTHWEST CORNER OF THE THIRD TRACT (V. 123, P. 290),
SAME BEING THE SOUTHWEST CORNER OF A CALLED 30 ACRES
TRACT OF LAND DESCRIBED IN VOLUME 5, PAGE 151,
D.R.W.C.T., FOR THE NORTHWEST AND BEGINNING CORNER OF
THIS TRACT.
THENCE ALONG THE SOUTH & EAST LINES OF SAID 30 ACRES AS
FOLLOWS:
1) N 89°35'28" E 2484.06 FEET TO A 4" STEEL FENCE CORNER
POST, FOR AN ELL CORNER OF THIS TRACT.
2) N 01°02'34" W 533.58 FEET TO A FOUND 1" IRON PIPE AT
THE SOUTHEAST CORNER OF THAT CALLED 187.08 ACRES AS
DESCRIBED IN CLERK FILE NO. 201322567, O.R.W.C.T., FOR
A CORNER OF THIS TRACT.
3) THENCE N 00°16'14" E 349.12 FEET TO A FOUND 3/8" IRON
ROD AT THE SOUTHWEST CORNER OF THOSE CERTAIN TRACTS OF
LAND DESCRIBED IN VOLUME 1643, PAGE 644, O.R.W.C.T.,
FOR THE NORTHWEST CORNER OF THIS TRACT.
4) THENCE N 89°40'40" E AT 1203.8 FEET PASS A FOUND 1/2"
IRON ROD WITH PLASTIC CAP STAMPED "MANNING" AT THE
NORTHWEST CORNER OF THAT CALLED 34.00 ACRES TRACT OF
LAND DESCRIBED IN CLERK FILE NO. 201600522,
O.R.W.C.T., AT 2609.13 FEET PASS A FOUND 3/8" IRON ROD
IN THE FENCED WEST LINE OF PIONEER STREET, A GRAVEL
SURFACE, FOR A TOTAL DISTANCE OF 2632.66 FEET TO A
POINT, FOR THE NORTHEAST CORNER OF THIS TRACT.
5) THENCE S 00°25'18" E 3975.79 FEET WITHIN SAID
PIONEER STREET TO A POINT, AT THE NORTHEAST CORNER OF
THAT CALLED 3.673 ACRES CONVEYED TO BRAZOS ELECTRIC
POWER COOPERATIVE, INC. IN VOLUME 931, PAGE 495,
O.R.W.C.T., FOR A CORNER OF THIS TRACT.
THENCE ALONG THE NORTH, WEST, & SOUTH LINES OF SAID
BRAZOS ELECTRIC TRACT AS FOLLOWS:
6) S 89°39'22" W 400.00 FEET TO A FOUND CAPPED 3/4" IRON
ROD;
7) S 00°20'10" E 399.94 FEET TO A FOUND CAPPED 3/4" IRON
ROD;
8) N 89°39'51" E 400.01 FEET TO A POINT WITHIN SAID
PIONEER STREET, FOR A CORNER OF THIS TRACT.
9) THENCE S 00°20'12" E 358.93 FEET WITHIN SAID PIONEER
STREET TO A FOUND 3/8" IRON ROD IN THE NORTH LINE OF
THAT CALLED 80 ACRES TRACT OF LAND DESCRIBED IN VOLUME
1547, PAGE 588, O.R.W.C.T., FOR THE EASTERLY SOUTHEAST
CORNER OF THIS TRACT.
THENCE ALONG THE COMMON LINE OF SAID FIFTH TRACT (V.
123, P. 290) & SAID 80 ACRES TRACT AS FOLLOWS:
10) S 89°16'40" W 2595.51 FEET TO A FOUND 3/8" IRON ROD;
11) S 00°41'22" E 1800.91 FEET TO A POINT WITHIN PIONEER
STREET, AN ASPHALT SURFACE, AT THE SOUTHEAST CORNER OF
THAT CALLED 22.00 ACRES TRACT OF LAND DESCRIBED IN
CLERK FILE NO. 201600523, O.R.W.C.T., FOR THE
SOUTHERLY SOUTHEAST CORNER OF THIS TRACT.
12) THENCE N 89°57'00" W WITHIN SAID PIONEER STREET AT
772.70 FEET PASS A FOUND P.K. NAIL IN ASPHALT AT THE
SOUTHWEST CORNER OF SAID 22.00 ACRES, FOR A TOTAL
DISTANCE OF 2919.89 FEET TO A POINT IN THE SIMPLE CURVE
OF A SPIRAL CURVE, BEING THE EAST LINE OF SAID FORT
WORTH & DENVER CITY RAILROAD RIGHT OF WAY, FOR THE
SOUTHWEST CORNER OF THIS TRACT. WHENCE A FOUND PK NAIL
BEARS S 89°57'00" E 1.58 FEET.
THENCE FIFTY FEET EAST OF & PERPENDICULAR TO THE CENTER
OF THE EXISTING RAILROAD LINE AS FOLLOWS:
SC1) ALONG THE ARC OF A SIMPLE CURVE TO THE RIGHT,
HAVING A RADIUS OF 2873.39 FEET, AN ARC LENGTH OF
195.21 FEET, AND WHOSE CHORD BEARS N 01°50'09" W 195.17
FEET TO A SET 1/2" IRON ROD WITH PLASTIC CAP AT THE
CURVE TO SPIRAL, A CHORD BEARS N 02°35'55" E 376.69 FEET
TO THE SPIRAL TO TANGENT;
13) N 03°50'04" E 5090.43 FEET TO THE POINT OF
BEGINNING.
BEARINGS & DISTANCES DERIVED FROM G.P.S. OBSERVATIONS
PERFORMED BY CARTER SURVEYING & MAPPING, INC. AND
REFLECT SURFACE ADJUSTED, N.A.D. 1983, TEXAS STATE
PLANE COORDINATE SYSTEM, NORTH CENTRAL ZONE 4202,
USING TEXAS DEPARTMENT OF TRANSPORTATION SURFACE
ADJUSTMENT FACTOR OF 1.00012.
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
7987, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7987.108 to read as follows:
Sec. 7987.108. 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 September 1, 2017.
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