Texas 2021 - 87th Regular

Texas House Bill HB4590 Compare Versions

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1-H.B. No. 4590
1+By: Sanford (Senate Sponsor - Springer) H.B. No. 4590
2+ (In the Senate - Received from the House May 17, 2021;
3+ May 17, 2021, read first time and referred to Committee on Local
4+ Government; May 22, 2021, reported adversely, with favorable
5+ Committee Substitute by the following vote: Yeas 7, Nays 0;
6+ May 22, 2021, sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR H.B. No. 4590 By: Springer
29
310
11+ A BILL TO BE ENTITLED
412 AN ACT
513 relating to the creation of the TRR 243 Municipal Management
614 District; providing authority to issue bonds and impose
715 assessments, fees, and taxes.
816 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
917 SECTION 1. Subtitle C, Title 4, Special District Local Laws
1018 Code, is amended by adding Chapter 3793 to read as follows:
1119 CHAPTER 3793. TRR 243 MUNICIPAL MANAGEMENT DISTRICT
1220 SUBCHAPTER A. GENERAL PROVISIONS
1321 Sec. 3793.0101. DEFINITIONS. In this chapter:
1422 (1) "Board" means the district's board of directors.
1523 (2) "City" means the City of Celina, Texas.
1624 (3) "Commission" means the Texas Commission on
1725 Environmental Quality.
1826 (4) "Director" means a board member.
1927 (5) "District" means the TRR 243 Municipal Management
2028 District.
2129 Sec. 3793.0102. CREATION AND NATURE OF DISTRICT. The
2230 district is a special district created under Sections 52 and 52-a,
2331 Article III, and Section 59, Article XVI, Texas Constitution.
2432 Sec. 3793.0103. PURPOSE; LEGISLATIVE FINDINGS. (a) The
2533 creation of the district is essential to accomplish the purposes of
2634 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
2735 Texas Constitution, and other public purposes stated in this
2836 chapter. By creating the district and in authorizing the city and
2937 other political subdivisions to contract with the district, the
3038 legislature has established a program to accomplish the public
3139 purposes set out in Section 52-a, Article III, Texas Constitution.
3240 (b) The creation of the district is necessary to promote,
3341 develop, encourage, and maintain employment, commerce,
3442 transportation, housing, tourism, recreation, the arts,
3543 entertainment, economic development, safety, and the public
3644 welfare in the district.
3745 (c) This chapter and the creation of the district may not be
3846 interpreted to relieve the city from providing the level of
3947 services provided to the area in the district as of the effective
4048 date of the Act enacting this chapter. The district is created to
4149 supplement and not to supplant the city services provided in the
4250 district.
4351 Sec. 3793.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
4452 (a) The district is created to serve a public use and benefit.
4553 (b) All land and other property included in the district
4654 will benefit from the improvements and services to be provided by
4755 the district under powers conferred by Sections 52 and 52-a,
4856 Article III, and Section 59, Article XVI, Texas Constitution, and
4957 other powers granted under this chapter.
5058 (c) The district is created to accomplish the purposes of a
5159 municipal management district as provided by general law and
5260 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
5361 Texas Constitution.
5462 (d) The creation of the district is in the public interest
5563 and is essential to:
5664 (1) further the public purposes of developing and
5765 diversifying the economy of the state;
5866 (2) eliminate unemployment and underemployment;
5967 (3) develop or expand transportation and commerce; and
6068 (4) provide quality residential housing.
6169 (e) The district will:
6270 (1) promote the health, safety, and general welfare of
6371 residents, employers, potential employees, employees, visitors,
6472 and consumers in the district, and of the public;
6573 (2) provide needed funding for the district to
6674 preserve, maintain, and enhance the economic health and vitality of
6775 the district territory as a community and business center; and
6876 (3) promote the health, safety, welfare, and enjoyment
6977 of the public by providing pedestrian ways and by landscaping and
7078 developing certain areas in the district, which are necessary for
7179 the restoration, preservation, and enhancement of scenic beauty.
7280 (f) Pedestrian ways along or across a street, whether at
7381 grade or above or below the surface, and street lighting, street
7482 landscaping, parking, and street art objects are parts of and
7583 necessary components of a street and are considered to be a street
7684 or road improvement.
7785 (g) The district will not act as the agent or
7886 instrumentality of any private interest even though the district
7987 will benefit many private interests as well as the public.
8088 Sec. 3793.0105. DISTRICT TERRITORY. (a) The district is
8189 composed of the territory described by Section 2 of the Act enacting
8290 this chapter, as that territory may have been modified under other
8391 law.
8492 (b) The boundaries and field notes contained in Section 2 of
8593 the Act enacting this chapter form a closure. A mistake in the
8694 field notes or in copying the field notes in the legislative process
8795 does not affect the district's:
8896 (1) organization, existence, or validity;
8997 (2) right to contract;
9098 (3) authority to borrow money or issue bonds or other
9199 obligations described by Section 3793.0501 or to pay the principal
92100 and interest of the bonds or other obligations;
93101 (4) right to impose or collect an assessment, or
94102 collect other revenue; or
95103 (5) legality or operation.
96104 Sec. 3793.0106. APPLICABILITY OF MUNICIPAL MANAGEMENT
97105 DISTRICTS LAW. Except as otherwise provided by this chapter,
98106 Chapter 375, Local Government Code, applies to the district.
99107 Sec. 3793.0107. CONSTRUCTION OF CHAPTER. This chapter
100108 shall be liberally construed in conformity with the findings and
101109 purposes stated in this chapter.
102110 Sec. 3793.0108. CONFLICTS OF LAW. This chapter prevails
103111 over any provision of Chapter 375, Local Government Code, that is in
104112 conflict or inconsistent with this chapter.
105113 Sec. 3793.0109. CONSENT OF MUNICIPALITY AND DEVELOPMENT
106114 AGREEMENT REQUIRED. (a) The board may not hold an election to
107115 authorize the issuance of bonds until:
108116 (1) the governing body of the city by ordinance or
109117 resolution consents to the creation of the district and to the
110118 inclusion of land in the district; and
111119 (2) the governing body of the city has entered into a
112120 development agreement with the owner of a majority of the land in
113121 the district.
114122 (b) The city's consent must be granted in the manner
115123 provided by Section 54.016, Water Code, for including land within
116124 the corporate limits or extraterritorial jurisdiction of a city.
117125 SUBCHAPTER B. BOARD OF DIRECTORS
118126 Sec. 3793.0201. GOVERNING BODY; TERMS. The district is
119127 governed by a board of five directors who serve staggered terms of
120128 four years, with two or three directors' terms expiring June 1 of
121129 each even-numbered year. One director is appointed by the city, and
122130 four directors are appointed by the commission as provided by
123131 Sections 3793.0202 and 3793.0203, respectively.
124132 Sec. 3793.0202. APPOINTMENT AND REMOVAL OF DIRECTOR
125133 APPOINTED BY CITY. (a) The governing body of the city shall
126134 appoint one director who must be:
127135 (1) at least 18 years of age; and
128136 (2) a resident of the city.
129137 (b) At any time the governing body of the city may remove the
130138 director appointed by the city and appoint a director to serve the
131139 remainder of the removed director's term.
132140 Sec. 3793.0203. APPOINTMENT BY COMMISSION. (a) Before the
133141 term of a director other than a director appointed under Section
134142 3793.0202 expires, the board shall recommend to the commission the
135143 appropriate number of persons to serve as successor directors. The
136144 commission shall appoint as directors the persons recommended by
137145 the board.
138146 (b) A person recommended by the board under Subsection (a)
139147 must be:
140148 (1) at least 18 years of age;
141149 (2) an owner of property in the district;
142150 (3) an owner of stock, whether beneficial or
143151 otherwise, of a corporate owner of property in the district;
144152 (4) an owner of a beneficial interest in a trust that
145153 owns property in the district; or
146154 (5) an agent, employee, or tenant of a person
147155 described by Subdivision (2), (3), or (4).
148156 Sec. 3793.0204. VACANCY. If a vacancy occurs on the board,
149157 the remaining directors shall appoint a director for the remainder
150158 of the unexpired term.
151159 Sec. 3793.0205. DIRECTOR'S OATH OR AFFIRMATION. (a) A
152160 director shall file the director's oath or affirmation of office
153161 with the district, and the district shall retain the oath or
154162 affirmation in the district records.
155163 (b) A director shall file a copy of the director's oath or
156164 affirmation with the secretary of the city.
157165 Sec. 3793.0206. OFFICERS. The board shall elect from among
158166 the directors a chair, a vice chair, and a secretary. The offices
159167 of chair and secretary may not be held by the same person.
160168 Sec. 3793.0207. COMPENSATION; EXPENSES. (a) The district
161169 may compensate each director in an amount not to exceed $150 for
162170 each board meeting. The total amount of compensation a director may
163171 receive each year may not exceed $7,200.
164172 (b) A director is entitled to reimbursement for necessary
165173 and reasonable expenses incurred in carrying out the duties and
166174 responsibilities of the board.
167175 Sec. 3793.0208. LIABILITY INSURANCE. The district may
168176 obtain and pay for comprehensive general liability insurance
169177 coverage from a commercial insurance company or other source that
170178 protects and insures a director against personal liability and from
171179 all claims relating to:
172180 (1) actions taken by the director in the director's
173181 capacity as a member of the board;
174182 (2) actions and activities taken by the district; or
175183 (3) the actions of others acting on behalf of the
176184 district.
177185 Sec. 3793.0209. NO EXECUTIVE COMMITTEE. The board may not
178186 create an executive committee to exercise the powers of the board.
179187 Sec. 3793.0210. INITIAL DIRECTORS. (a) On or after
180188 September 1, 2021, the owner or owners of a majority of the assessed
181189 value of the real property in the district according to the most
182190 recent certified tax appraisal rolls for the county may submit a
183191 petition to the commission requesting that the commission appoint
184192 as initial directors the four persons named in the petition. The
185193 commission shall appoint as initial directors the four persons
186194 named in the petition.
187195 (b) The governing body of the city shall appoint one initial
188196 director.
189197 (c) The initial directors shall determine by lot which three
190198 positions expire June 1, 2023, and which two positions expire June
191199 1, 2025.
192200 (d) This section expires September 1, 2023.
193201 SUBCHAPTER C. POWERS AND DUTIES
194202 Sec. 3793.0301. GENERAL POWERS AND DUTIES. The district
195203 has the powers and duties necessary to accomplish the purposes for
196204 which the district is created.
197205 Sec. 3793.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
198206 Subject to Subsection (b), the district may provide, design,
199207 construct, acquire, improve, relocate, operate, maintain, or
200208 finance an improvement project or service using money available to
201209 the district, or contract with a governmental or private entity to
202210 provide, design, construct, acquire, improve, relocate, operate,
203211 maintain, or finance an improvement project or service authorized
204212 under this chapter or Chapter 375, Local Government Code.
205213 (b) The district may not construct or finance an improvement
206214 project, other than a water, sewer, or drainage facility or road,
207215 unless the governing body of the city by ordinance or resolution
208216 consents to the construction or financing.
209217 (c) The district may issue bonds, notes, or other
210218 obligations to maintain or repair an existing improvement project
211219 only if the governing body of the city by ordinance or resolution
212220 consents to the issuance.
213221 Sec. 3793.0303. LOCATION OF IMPROVEMENT PROJECT. A
214222 district improvement project may be located inside or outside of
215223 the district.
216224 Sec. 3793.0304. OWNERSHIP OF IMPROVEMENT PROJECTS. (a)
217225 Before a district improvement project may be put into operation,
218226 the district must transfer ownership of the project to the city.
219227 (b) The transfer of ownership is complete on the city's
220228 acceptance of ownership.
221229 Sec. 3793.0305. RETAIL WATER AND SEWER SERVICES PROHIBITED.
222230 The district may not provide retail water or sewer services.
223231 Sec. 3793.0306. ADDING OR REMOVING TERRITORY. (a) Subject
224232 to Subsection (b), the board may add or remove territory as provided
225233 by Subchapter J, Chapter 49, Water Code.
226234 (b) The district may add territory as described by
227235 Subsection (a) only if the governing body of the city by ordinance
228236 or resolution consents to the addition.
229237 Sec. 3793.0307. NO EMINENT DOMAIN POWER. The district may
230238 not exercise the power of eminent domain.
231239 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
232240 Sec. 3793.0401. DISBURSEMENTS AND TRANSFERS OF MONEY. The
233241 board by resolution shall establish the number of directors'
234242 signatures and the procedure required for a disbursement or
235243 transfer of the district's money.
236244 Sec. 3793.0402. MONEY USED FOR IMPROVEMENTS OR SERVICES.
237245 The district may acquire, construct, or finance an improvement
238246 project or service authorized by this chapter or Chapter 375, Local
239247 Government Code, using any money available to the district.
240248 Sec. 3793.0403. METHOD OF NOTICE FOR HEARING. The district
241249 may mail the notice required by Section 375.115(c), Local
242250 Government Code, by certified or first class United States mail.
243251 The board shall determine the method of notice.
244252 Sec. 3793.0404. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
245253 The board by resolution may impose and collect an assessment for any
246254 purpose authorized by this chapter in all or any part of the
247255 district.
248256 (b) An assessment, a reassessment, or an assessment
249257 resulting from an addition to or correction of the assessment roll
250258 by the district, penalties and interest on an assessment or
251259 reassessment, an expense of collection, and reasonable attorney's
252260 fees incurred by the district are:
253261 (1) a first and prior lien against the property
254262 assessed;
255263 (2) superior to any other lien or claim other than a
256264 lien or claim for county, school district, or municipal ad valorem
257265 taxes; and
258266 (3) the personal liability of and a charge against the
259267 owners of the property even if the owners are not named in the
260268 assessment proceedings.
261269 (c) The lien is effective from the date of the board's
262270 resolution imposing the assessment until the date the assessment is
263271 paid. The board may enforce the lien in the same manner that the
264272 board may enforce an ad valorem tax lien against real property.
265273 (d) The board may make a correction to or deletion from the
266274 assessment roll that does not increase the amount of assessment of
267275 any parcel of land without providing notice and holding a hearing in
268276 the manner required for additional assessments.
269277 (e) The district may not impose an assessment on a
270278 municipality, county, or other political subdivision.
271279 Sec. 3793.0405. NOTICE OF ASSESSMENTS. Annually, the board
272280 shall file with the secretary of the city written notice that
273281 specifies the assessments the district will impose in the
274282 district's next fiscal year in sufficient clarity to describe the
275283 assessments for the operation and maintenance of the district and
276284 the assessments for the payment of debt service of obligations
277285 issued or incurred by the district.
278286 SUBCHAPTER E. TAXES AND BONDS
279287 Sec. 3793.0501. BONDS AND OTHER OBLIGATIONS. (a) The
280288 district may issue bonds, notes, or other obligations payable
281289 wholly or partly from ad valorem taxes or assessments in the manner
282290 provided by Subchapter J, Chapter 375, Local Government Code.
283291 (b) In exercising the district's borrowing power, the
284292 district may issue a bond or other obligation in the form of a bond,
285293 note, certificate of participation or other instrument evidencing a
286294 proportionate interest in payments to be made by the district, or
287295 other type of obligation.
288296 (c) In addition to the sources of money described by
289297 Subchapter J, Chapter 375, Local Government Code, district bonds
290298 may be secured and made payable wholly or partly by a pledge of any
291299 part of the money the district receives from improvement revenue or
292300 from any other source.
293301 (d) Not later than the 30th day before the date the district
294302 holds a bond sale, the district shall provide the governing body of
295303 the city written notice of the sale.
296304 SUBCHAPTER F. DISSOLUTION
297305 Sec. 3793.0601. DISSOLUTION BY CITY ORDINANCE. (a) The
298306 governing body of the city may dissolve the district by ordinance.
299307 (b) The governing body may not dissolve the district until:
300308 (1) water, sanitary, sewer, and drainage improvements
301309 and roads have been constructed to serve at least 90 percent of the
302310 developable territory of the district; and
303311 (2) the district has reimbursed each party that has an
304312 agreement with the district for all costs advanced to or on behalf
305313 of the district.
306314 (c) Until the district is dissolved, the district is
307315 responsible for all bonds and other obligations of the district.
308316 Sec. 3793.0602. COLLECTION OF ASSESSMENTS AND OTHER
309317 REVENUE. (a) If the dissolved district has bonds or other
310318 obligations outstanding secured by and payable from assessments or
311319 other revenue, other than revenue from ad valorem taxes, the city
312320 shall succeed to the rights and obligations of the district
313321 regarding enforcement and collection of the assessments or other
314322 revenue.
315323 (b) The city shall have and exercise all district powers to
316324 enforce and collect the assessments or other revenue to pay:
317325 (1) the bonds or other obligations when due and
318326 payable according to their terms; or
319327 (2) special revenue or assessment bonds or other
320328 obligations issued by the city to refund the outstanding bonds or
321329 obligations.
322330 Sec. 3793.0603. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
323331 After the city dissolves the district, the city assumes, subject to
324332 the appropriation and availability of funds, the obligations of the
325333 district, including any bonds or other debt payable from
326334 assessments or other district revenue.
327335 (b) If the city dissolves the district, the board shall
328336 transfer ownership of all district property to the city.
329337 SECTION 2. The TRR 243 Municipal Management District
330338 initially includes all the territory contained in the following
331339 area:
332340 BEING that certain tract of land situated in the Collin County
333341 School Land Survey, Abstract No. 168, Collin County, Texas, and
334342 being all of that certain called 243.820 acre tract of land as
335343 conveyed to Laura Latham Shinker, Elizabeth Brent and David Brent,
336344 as recorded in Volume 967, Page 705 of the Deed Records of Collin
337345 County, Texas, and also being all of that certain called 243.859
338346 acre tract of land as conveyed to Godwin Family Investments, Ltd.,
339347 by deed recorded in Volume 5634, Page 3372, said Deed Records, and
340348 being more particularly described by metes and bounds as follows:
341349 BEGINNING at a 5/8 inch iron rod found for the southeast corner of
342350 said Godwin Family Investments tract, same being the southwest
343351 corner of that certain tract of land to Carol J. King or Julia King
344352 Needum, and their Successors, as Trustee of the King Family Trust,
345353 as recorded in Instrument no. 2012102200134910, Official Public
346354 Records, Collin County, Texas, same being in the north right-of-way
347355 line of F.M. Highway 428 (a 105' public right-of-way at this point);
348356 THENCE Sough 89 deg. 59 min. 43 sec. West, along the common line of
349357 said Godwin Family Investments tract, and the north right-of-way
350358 line of said F. M. Highway No. 428, a distance of 2602.61 feet to a
351359 1/2 inch iron pipe found for the most southerly southwest corner of
352360 said Godwin Family Investments tract;
353361 THENCE North 45 deg. 11 min. 54 sec. West, continuing along the
354362 common line of said Godwin Family Investments tract, and the north
355363 right-of-way line of said F. M. Highway 428, a distance of 42.50
356364 feet to a point;
357365 THENCE South 89 deg. 59 min. 06 sec. West, continuing along the
358366 common line of said Godwin Family Investments tract, and the north
359367 right-of-way line of said F. M. Highway No. 428, a distance of 17.50
360368 feet to a 1/2 inch iron rod found in the approximate center of
361369 County Road No. 54 (a gravel paved prescriptive right-of-way);
362370 THENCE North 00 deg. 02 min. 21 sec. West, along the west line of
363371 said Godwin Family Investments tract, and generally along the
364372 centerline of said County Road No. 54, a distance of 3965.31 feet to
365373 a 3/8 inch rod found for the northwest corner of said Godwin Family
366374 Investments tract, same being the southwest corner of that certain
367375 tract of land to Michael C. Hollifield and wife, Deborah Baker
368376 Hollifield, husband and wife, by deed recorded in Volume 5696, Page
369377 1982, aforesaid Deed Records;
370378 THENCE South 89 deg. 57 min. 51 sec. East, along the common line of
371379 said Godwin Family Investments tract, and said Hollifield tract,
372380 passing the southeast corner of said Hollifield tract, same being
373381 the southwest corner of that certain tract of land to the Pollard
374382 Family Living Trust, by deed recorded in County Clerk's File
375383 No. 20120608000680240, aforesaid Official Public Records, and
376384 continuing along the common line of said Godwin Family Investments
377385 tract, and said Pollard tract, a total distance of 2669.06 feet to a
378386 3/4 inch iron rod found for the northeast corner of said Godwin
379387 Family Investments tract, same being the southeast corner of said
380388 Pollard tract, same being in the west line of that certain tract of
381389 land to Douglas J. Barker and wife, Saundra Barker, by deed recorded
382390 in Volume 1159, Page 423, said Deed Records;
383391 THENCE South 00 deg. 14 min. 32 sec. West, along common line of said
384392 Godwin Family Investments tract, and said Pollard tract, passing
385393 the southwest corner of said Pollard tract, same being the most
386394 northerly northwest corner of that certain tract of land to Old
387395 Celina, Ltd., by deed recorded in Volume 5208, Page 3376, said Deed
388396 Records, and continuing along the common line of said Godwin Family
389397 Investments tract, and said Old Celina tract, a total distance of
390398 1400.08 feet to a Bois d' Arc Fence found for the most westerly
391399 southwest corner of said Old Celina tract, same being the northwest
392400 corner of aforesaid King tract;
393401 THENCE South 00 deg. 13 min. 28 sec. West, along the common line of
394402 said Godwin Family Investments tract, and said King tract, a
395403 distance of 2593.32 feet to the POINT OF BEGINNING and containing
396404 243.846 acres of computed land, more or less.
397405 SECTION 3. (a) The legal notice of the intention to
398406 introduce this Act, setting forth the general substance of this
399407 Act, has been published as provided by law, and the notice and a
400408 copy of this Act have been furnished to all persons, agencies,
401409 officials, or entities to which they are required to be furnished
402410 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
403411 Government Code.
404412 (b) The governor, one of the required recipients, has
405413 submitted the notice and Act to the Texas Commission on
406414 Environmental Quality.
407415 (c) The Texas Commission on Environmental Quality has filed
408416 its recommendations relating to this Act with the governor,
409417 lieutenant governor, and speaker of the house of representatives
410418 within the required time.
411419 (d) All requirements of the constitution and laws of this
412420 state and the rules and procedures of the legislature with respect
413421 to the notice, introduction, and passage of this Act have been
414422 fulfilled and accomplished.
415423 SECTION 4. This Act takes effect September 1, 2021.
416- ______________________________ ______________________________
417- President of the Senate Speaker of the House
418- I certify that H.B. No. 4590 was passed by the House on May
419- 14, 2021, by the following vote: Yeas 106, Nays 39, 2 present, not
420- voting; and that the House concurred in Senate amendments to H.B.
421- No. 4590 on May 28, 2021, by the following vote: Yeas 103, Nays 43,
422- 1 present, not voting.
423- ______________________________
424- Chief Clerk of the House
425- I certify that H.B. No. 4590 was passed by the Senate, with
426- amendments, on May 26, 2021, by the following vote: Yeas 31, Nays
427- 0.
428- ______________________________
429- Secretary of the Senate
430- APPROVED: __________________
431- Date
432- __________________
433- Governor
424+ * * * * *