86R19624 JCG-F
By: Burns H.B. No. 4744
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Wright Farm Municipal Management
District of Johnson County; providing authority to issue bonds and
impose assessments, fees, and taxes.
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 3974 to read as follows:
CHAPTER 3974. WRIGHT FARM MUNICIPAL MANAGEMENT DISTRICT OF JOHNSON
COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3974.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Cleburne, Texas.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "Director" means a board member.
(5) "District" means the Wright Farm Municipal
Management District of Johnson County.
Sec. 3974.0102. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution.
Sec. 3974.0103. 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.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city from providing the level of
services provided to the area in the district as of the effective
date of the Act enacting this chapter. The district is created to
supplement and not to supplant the city services provided in the
district.
Sec. 3974.0104. 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;
(3) develop or expand transportation and commerce; and
(4) provide quality residential housing.
(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.
(g) 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. 3974.0105. 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 other
law.
(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 3974.0601 or to pay the principal
and interest of the bonds or other obligations;
(4) right to impose or collect an assessment, or
collect other revenue; or
(5) legality or operation.
Sec. 3974.0106. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3974.0107. CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Sec. 3974.0108. CONFLICTS OF LAW. This chapter prevails
over any provision of Chapter 375, Local Government Code, that is in
conflict or inconsistent with this chapter.
Sec. 3974.0109. CONSENT OF MUNICIPALITY AND DEVELOPMENT
AGREEMENT REQUIRED. (a) The board may not hold an election to
authorize the issuance of bonds until:
(1) the governing body of the city by ordinance or
resolution consents to the creation of the district and to the
inclusion of land in the district; and
(2) the district, the city, and the owner or owners of
a majority of the assessed value of real property in the district
negotiate and execute a mutually approved and accepted development
and operating agreement, including any limitations imposed by the
city.
(b) The city's consent under Subsection (a) must be granted
in the manner provided by Section 54.016, Water Code, for including
land within the corporate limits or extraterritorial jurisdiction
of a city.
Sec. 3974.0110. CONCURRENCE ON ADDITIONAL POWERS. If the
territory of the district is located in the corporate boundaries or
the extraterritorial jurisdiction of a municipality, the district
may not exercise a power granted to the district after the date the
district was created unless the governing body of the municipality
by resolution consents to the district's exercise of the power.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3974.0201. 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 June 1 of
each even-numbered year. Five directors are appointed by the
commission as provided by Section 3974.0202.
Sec. 3974.0202. APPOINTMENT BY COMMISSION. (a) Before the
term of a director expires, the board shall recommend to the
commission the appropriate number of persons to serve as successor
directors and may recommend additional persons to serve as
successor directors. The commission shall appoint as directors the
appropriate number of persons from the persons recommended by the
board.
(b) A person recommended by the board under Subsection (a)
must be:
(1) at least 18 years of age;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that
owns property in the district; or
(5) an agent, employee, or tenant of a person
described by Subdivision (2), (3), or (4).
Sec. 3974.0203. VACANCY. If a vacancy occurs on the board,
the remaining directors shall appoint a director for the remainder
of the unexpired term.
Sec. 3974.0204. DIRECTOR'S OATH OR AFFIRMATION. (a) 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.
(b) A director shall file a copy of the director's oath or
affirmation with the secretary of the city.
Sec. 3974.0205. OFFICERS. The board shall elect from among
the directors a chair, a vice chair, and a secretary. The offices
of chair and secretary may not be held by the same person.
Sec. 3974.0206. COMPENSATION; EXPENSES. (a) The district
may compensate each director in an amount not to exceed $150 for
each board meeting. The total amount of compensation a director may
receive each year may not exceed $7,200.
(b) A director is entitled to reimbursement for necessary
and reasonable expenses incurred in carrying out the duties and
responsibilities of the board.
Sec. 3974.0207. LIABILITY INSURANCE. The district may
obtain and pay for comprehensive general liability insurance
coverage from a commercial insurance company or other source that
protects and insures a director against personal liability and from
all claims relating to:
(1) actions taken by the director in the director's
capacity as a member of the board;
(2) actions and activities taken by the district; or
(3) the actions of others acting on behalf of the
district.
Sec. 3974.0208. NO EXECUTIVE COMMITTEE. The board may not
create an executive committee to exercise the powers of the board.
Sec. 3974.0209. BOARD MEETINGS. The board shall hold
meetings at a place that is accessible to the public and located in
the district or in the city.
Sec. 3974.0210. INITIAL DIRECTORS. (a) On or after
September 1, 2019, 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 commission requesting that the commission appoint
as initial directors the five persons named in the petition. The
commission shall appoint as initial directors the five persons
named in the petition.
(b) The initial directors shall determine by lot which three
positions expire June 1, 2021, and which two positions expire June
1, 2023.
(c) This section expires September 1, 2023.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3974.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3974.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
Subject to Subsection (b), the district may provide, design,
construct, acquire, improve, relocate, operate, maintain, or
finance an improvement project or service using money available to
the district, or contract with a governmental or private entity to
provide, design, construct, acquire, improve, relocate, operate,
maintain, or finance an improvement project or service authorized
under this chapter or Chapter 375, Local Government Code.
(b) The district may not construct or finance an improvement
project, other than a water, sewer, or drainage facility or road,
unless the governing body of the city by ordinance or resolution
consents to the construction or financing.
Sec. 3974.0303. LOCATION OF IMPROVEMENT PROJECT. A
district improvement project may be located inside or outside of
the district.
Sec. 3974.0304. ADDING TERRITORY. The district may add
territory only if the governing body of the city by ordinance or
resolution consents to the addition.
Sec. 3974.0305. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3974.0401. DIVISION OF DISTRICT; PREREQUISITES. The
district, including territory added to the district under Section
3974.0306, 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 3974.0306 may be included in a
new district.
Sec. 3974.0402. 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. 3974.0403. 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:
(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 five initial directors for each new
district.
Sec. 3974.0404. CONTRACT AUTHORITY OF NEW DISTRICTS. 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 improvement.
Sec. 3974.0405. POWERS SUBJECT TO DEVELOPMENT AND OPERATING
AGREEMENT. In addition to the other limitations provided by this
chapter, the district's authority to exercise its powers is subject
to the terms of the development and operating agreement required
under Section 3974.0109, including the district's authority to:
(1) acquire, construct, or finance an improvement
project or service under Section 3974.0502; and
(2) issue bonds, notes, certificates of
participation, or other obligations under Section 3974.0601.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3974.0501. 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. 3974.0502. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, or finance an improvement
project or service authorized by this chapter or Chapter 375, Local
Government Code, using any money available to the district.
Sec. 3974.0503. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of notice.
Sec. 3974.0504. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(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 are:
(1) a first and prior lien against the property
assessed;
(2) superior to any other lien or claim other than a
lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) the personal liability of and a charge against the
owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(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.
(e) The district may not impose an assessment on a
municipality, county, or other political subdivision.
Sec. 3974.0505. NOTICE OF ASSESSMENTS. Annually, the board
shall file with the secretary of the city written notice that
specifies the assessments the district will impose in the
district's next fiscal year in sufficient clarity to describe the
assessments for the operation and maintenance of the district and
the assessments for the payment of debt service of obligations
issued or incurred by the district.
SUBCHAPTER F. TAXES AND BONDS
Sec. 3974.0601. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue, by public or private sale, bonds, notes, or
other obligations payable wholly or partly from ad valorem taxes or
assessments in the manner provided by Subchapter A, Chapter 372, or
Subchapter J, Chapter 375, Local Government Code. Sections
375.207(a) and (b), Local Government Code, do not apply to the
district.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
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 improvement revenue or from any other source.
SUBCHAPTER J. SPECIAL BOND PROVISIONS
Sec. 3974.1001. APPLICABILITY. This subchapter applies
only to bonds payable wholly or partly from revenue derived from
assessments on real property in the district.
Sec. 3974.1002. CONFLICT OF LAWS. In the event of a
conflict between this subchapter and any other law, this subchapter
prevails.
Sec. 3974.1003. WRITTEN AGREEMENT REGARDING SPECIAL
APPRAISALS. Before the district may issue bonds, the district and
any person to whom the board intends that proceeds of the bonds be
distributed, including the developer, another owner of land in the
district, and any entity acting as a lender to the developer or
other landowner for the purpose of a project relating to the
district, must enter into a written agreement that:
(1) waives for the term of the agreement the right to a
special appraisal with respect to taxation by the district under
Subchapters B, C, D, E, F, and H, Chapter 23, Tax Code; and
(2) remains in effect for 30 years and is binding on
the parties, on entities related to or affiliated with the parties,
and on their successors and assignees.
Sec. 3974.1004. REQUIREMENTS FOR ADVERTISING BOND ISSUE. A
district may not advertise for an issuance of bonds until the
completion of at least 25 percent of the projected value of the
improvements, including houses and other buildings, that are liable
for district assessments and necessary to support the district
bonds.
Sec. 3974.1005. REQUIREMENTS FOR BOND ISSUE. The district
may not issue bonds until:
(1) the district submits to the commission:
(A) an engineer's report describing the project
for which the bonds will provide funding, including data, profiles,
maps, plans, and specifications related to the project; and
(B) a cash flow analysis to determine the
projected rate of assessment, which includes the following
assumptions:
(i) each ending balance for debt service in
the analysis is not less than 25 percent of the following year's
debt service requirement;
(ii) interest income is only shown on the
ending balance for debt service for the first two years; and
(iii) the projected rate of assessment is
level or decreasing for the life of the bonds issued by the
district;
(2) the completion of at least 75 percent of the
projected value of the improvements, including houses and other
buildings, that are liable for district assessments and necessary
to support the district bonds; and
(3) the district has obtained an independent market
study from a firm recognized in the area of real estate market
analysis supporting the development projects for the real property
that is liable for district assessments and necessary to support
the district bonds.
Sec. 3974.1006. REQUIREMENTS FOR COLLECTION OF REVENUE TO
PAY BONDS. The district may not collect an assessment to be used
for the payment of bonds until:
(1) the completion of at least 95 percent of the
underground water, wastewater, and drainage facilities financed
from bond proceeds that are necessary to serve the projected
build-out, as certified by the district's engineer;
(2) the district or other appropriate party has
secured the groundwater, surface water, and water discharge permits
that are necessary to secure capacity to support the projected
build-out;
(3) the completion of at least 95 percent of lift
station, water plant, and sewage treatment plant capacity
sufficient to serve the connections constructed in the project for
a period of not less than 18 months, as certified by the district's
engineer; and
(4) the completion of at least 95 percent of the
streets and roads that are necessary to provide access to the areas
served by utilities and financed by the proceeds of bonds issued by
the district, as certified by the district's engineer and
constructed in accordance with municipal or county standards.
SECTION 2. The Wright Farm Municipal Management District of
Johnson County initially includes all the territory contained in
the following area:
366.96 acres of land, being composed of the following 250.96 acre
and 116 acre tracts:
Tract 1:
BEING 250.960 acres out of a called 490.289 acre tract of land
located in the SAMUEL COOPER SURVEY, ABSTRACT NUMBER 159, Johnson
County, Texas out of that certain tract of land conveyed to Mayfield
Family Real Estate, LP, according to the deed recorded in
Instrument Number 2010-10957, Deed Records of Johnson County, Texas
and being more particularly described as follows:
BEGINNING at a 1/2" capped iron rod stamped "RPLS 5614" found for
corner, being the northeast corner of said Mayfield tract and also
being in the apparent centerline intersection of County Road 904
and County Road 1017;
THENCE, South 01 degrees 04 minutes 35 seconds East, along the
apparent centerline of said County Road 1017, 3135.29 feet to a 1/2"
iron rod found for corner;
THENCE, South 89 degrees 45 minutes 13 seconds West, 2186.86 feet to
a 3/8" iron rod found for corner;
THENCE, South 89 degrees 51 minutes 18 seconds West, 1306.03 feet to
a 3/8" iron rod found for corner;
THENCE, North 01 degrees 04 minutes 35 seconds West, 3123.44 feet to
a point in the north line of said Mayfield tract and the apparent
centerline of said County Road 904 for corner;
THENCE, North 89 degrees 35 minutes 50 seconds East, along the
apparent centerline of said County Road 904, 3492.73 feet to the
POINT OF BEGINNING.
The tract of land herein described contains 250.960 acres of land.
Tract 2:
A part of the Dyer-Nuner Survey, in Johnson County, Texas,
BEGINNING at a stake in the east line of the Mrs. M. H. Hadley tract
of land out of the said Dyer-Nuner Survey as the same is now located
and commonly known as the Hadley farm, the same being the S.E.
corner of a 117 acre tract of land, conveyed to O. B. Hadley by H. O.
Hadley
THENCE in a southerly direction 841 varas to a stake in the north
line of the Joshua and Godley public road for the southeast corner
of this tract of land;
THENCE in a westerly direction with the north line of said Joshua
and Godley Public Road 640 varas to a stake for corner, the same
being the S.E. corner of a 40 acre tract heretofore deeded to W. B.
Hadley, now deceased;
THENCE in a northerly direction with the east line of said W. B.
Hadley 40 acre tract, 550 varas to its northeast corner;
THENCE in a westerly direction with the north line of the said W. B.
Hadley 40 acre tract, 410 varas to a stake in the west line of the
said M. J. Hadley tract of land;
THENCE in a northerly direction with said west line of said M. J.
Hadley tract 201 varas to a stake for corner, the same being the S.
W. corner of the 117 acre tract conveyed to H. O. Hadley;
THENCE in an easterly direction with the south line of said H. O.
Hadley 117 acre tract, the same being the north line of this tract
here described 1050 varas to the place of beginning, containing 117
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. This Act takes effect September 1, 2019.