By: Springer S.B. No. 2240
(In the Senate - Filed April 29, 2021; May 3, 2021, read
first time and referred to Committee on Local Government;
May 19, 2021, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; May 19, 2021,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 2240 By: Springer
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the High Pointe Ranch Municipal Utility
District No. 1 of Denton County; 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 7919A to read as follows:
CHAPTER 7919A. HIGH POINTE RANCH MUNICIPAL UTILITY DISTRICT NO. 1
OF DENTON COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7919A.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "City" means the City of Aubrey, Texas;
(4) "Director" means a board member.
(5) "District" means the High Pointe Ranch Municipal
Utility District No. 1 of Denton County.
Sec. 7919A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7919A.0103. CONFIRMATION AND DIRECTOR ELECTION
REQUIRED. The temporary directors shall hold an election to
confirm the creation of the district as provided by Section 49.102,
Water Code.
Sec. 7919A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7919A.0103 until each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located has
consented by ordinance or resolution to the creation of the
district and to the inclusion of land in the district.
Sec. 7919A.0105. 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. 7919A.0106. 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.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7919A.0201. GOVERNING BODY; TERMS. (a) 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.
(b) The governing body of the city, by a majority vote,
shall appoint one member of the board.
(c) The commission shall appoint four members of the board
in the manner provided by Section 7919A.0202.
Sec. 7919A.0202. APPOINTMENT BY COMMISSION. (a) Before
the term of a director appointed by the commission expires, the
board shall recommend to the commission a person to serve as a
successor director. The commission shall appoint as director the
person 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. 7919A.0203. VACANCY. (a) Except as provided by
Subsection (b), if a vacancy occurs on the board, the remaining
directors shall appoint a director for the remainder of the
unexpired term.
(b) If a vacancy occurs in the position of the board member
appointed by the city, the city shall appoint a director for the
remainder of the unexpired term.
Sec. 7919A.0204. INITIAL DIRECTORS. (a) The initial
directors that will be replaced by appointment by the commission
are as follows:
(1) Clark Overlander;
(2) Justin Morse;
(3) Zach Stateson; and
(4) Michelle Dobson.
(b) The initial director that will be replaced by
appointment by the governing body of the city is Mark Kaiser.
(c) The initial directors shall determine by lot which two
positions expire after two years, and which three positions expire
after four years.
(d) This section expires March 31, 2026.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7919A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7919A.0302. 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. 7919A.0303. 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. 7919A.0304. 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. 7919A.0305. 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. 7919A.0306. DIVISION OF DISTRICT. (a) The district
may be divided into two or more new districts only if the district:
(1) has no outstanding bonded debt; and
(2) is not imposing ad valorem taxes.
(b) 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.
(c) A new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act enacting this
chapter.
(d) The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value of
the real property in the district, may adopt an order dividing the
district.
(e) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
7919A.0103 to confirm the district's creation.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between the new districts.
(g) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the commission and record the order in the real property
records of each county in which the district is located.
(h) A new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 7919A.0103. If the voters of a new district do not confirm
the creation of the new district, the assets, obligations,
territory, and governance of the new district revert to the
original district.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(j) A new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
(k) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
7919A.0104 acts as municipal consent to the creation of any new
district created by the division of the district and to the
inclusion of land in the new district.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7919A.0401. 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
7919A.0403.
(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. 7919A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7919A.0401, 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. 7919A.0403. 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. 7919A.0501. 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. 7919A.0502. 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. 7919A.0503. 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 High Pointe Ranch Municipal Utility District
No. 1 of Denton County initially includes all the territory
contained in the following area:
HIGH POINTE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 - TRACT 1
OF a 357.445 acres tract of land out of the Francisco Trevino
Survey, Abstract No. 1243, Denton County, Texas; being all of a
certain 229.479 acres tract (Tract 1), a 32.8 acres tract (Tract 2)
and a 29.885 acres tract (Tract 3), all described in Volume 4257,
Page 1101, Document No. 99-0004597 of the Deed Records of Denton
County, Texas; also being all of a certain 6.874 acres tract
described in Volume 4574, Page 1528, Document No. 00-000036697 and
all of a certain 57.6071 acres tract described in Volume 4483, Page
133, Document No. 99-000123273, both in the Deed Records of Denton
County, Texas; and being further described by metes and bounds as
follows:
BEGINNING at a set "PK" nail in Blackjack Road (paved) and in the
southeast right of way line of U.S. Highway No. 377 and in the
recognized north line of said Francisco Trevino Survey and at the
northwest corner of said 32.8 acres tract for the most northerly
northwest and beginning corner of this tract. Whence the recognized
southwest corner of the Thomas Chambers Survey, Abstract No. 223
bears South 87°12'41" East 60.40 feet.
THENCE South 87°12'41" East at 60.40 feet pass a "PK" nail at the
southwest corner of a certain 6.164 acres tract (Tract 5) described
in said Volume 4257, Page 1101 and in all 1160.06 feet along said
Blackjack Road to a found "PK" nail at the southeast corner of said
6.164 acres tract for a corner of this tract.
THENCE South 88°09'42" East 505.03 feet to a set "PK" nail in said
Blackjack Road for a corner of this tract.
THENCE South 89°21'04" East 1356.90 feet to a set "PK" nail in said
Blackjack Road for the northeast corner of this tract.
THENCE South 01°40'27" West at 20.69 feet pass a 4" steel post in the
south line of said Blackjack Road and in all 2322.77 feet to a set
capped 1/2" iron rod for the most easterly southeast corner of this
tract.
THENCE South 89°35'01" West at 250.28 feet pass a found capped 1/2"
iron rod at the northeast corner of a certain 27.104 acres tract
described in Document No. 96-000070599 and in all 1539.46 feet to a
found 1/2" iron pipe at the northwest corner of a certain 27.600
acres tract described in Document No. 96-000070600 for an ell
corner of this tract.
THENCE South 00°10'39" East 956.88 feet to a set capped 1/2" iron rod
in the west line of said 27.600 acres tract for a corner of this
tract.
THENCE South 00°56'07" West 1132.15 feet to a set capped 1/2" iron
rod in the north right of way line of F.M. Highway No. 428 and at the
southwest corner of said 27.600 acres tract for the most southerly
southeast corner of this tract.
THENCE along the north right of way line of said F.M. Highway
No. 428 the following courses and distances:
● South 71°34'50" West 144.40 feet to a set capped 1/2" iron
rod;
● Westerly along the arc of a 07 deg. 21 min. 35 sec.
non-tangent curve to the right having a radius of 778.51 feet, a
central angle of 18 deg. 46 min. 14 sec., a chord of South 82°46'29"
West 253.91 feet and an arc length of 255.05 feet to a set capped
1/2" iron rod;
● South 88°45'46" West 378.48 feet to a set capped 1/2" iron
rod;
● South 89°36'06" West 1349.02 feet to a set capped 1/2" iron
rod;
● And South 89°52'21" West 1364.91 feet to a set capped 1/2"
iron rod in the southeast right of way line of said U.S. Highway
No. 377 for the most southerly southwest corner of this tract;
THENCE North 32°23'53" West 213.57 feet along the southeast right of
way line of said U.S. Highway 377 to a wood right of way marker for
the most westerly southwest corner of this tract.
THENCE North 25°19'53" East 4804.08 feet along the southeast right
of way line of said U.S. Highway No. 377 to a set capped 1/2" iron
rod for the most westerly northwest corner of this tract.
THENCE North 59°03'36" East at 101.21 feet pass a set 1/2" iron rod
and in all 166.34 feet to the POINT OF BEGINNING and containing
357.445 acres of land, more or less.
HIGH POINTE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 - TRACT 2
BEING a tract of land situated in the F. Trevino Survey, Abstract
No. 1243, Denton County, Texas, and being all of a called 61.667
acre tract of land described in a General Warranty Deed to Betsy
Turner, as recorded in Instrument No. 97-0010270 of the Official
Records of Denton County, Texas, and being more particularly
described as follows:
BEGINNING at a mag nail set for the northeast corner of said 61.667
acre tract, common to the northwest corner of a called 41.640 acre
tract of land described in a deed to Michael Ray Self and spouse,
Hannah Carter Self, as recorded in Instrument No. 2020-72317 of the
Official Records of Denton County, Texas, being on the southerly
line of Tract I described in a deed to LTR Dressage, LLC, as
recorded in Instrument No. 2012-60776 of the Official Records of
Denton County, Texas, and in the centerline of Black Jack Road, a
variable width right-of-way, no record found;
THENCE South 0°37'22" West, departing the southerly line of said
Tract I and the centerline of said Black Jack Road, along the
easterly line of said 61.667 acre tract and the westerly line of
said 41.640 acre tract, a distance of 2297.48 feet to a 5/8 inch
iron rod with plastic cap stamped "KHA" set for the southeast corner
of said 61.667 acre tract, common to the southwest corner of said
41.640 acre tract, being on the northerly line of a called 94.58
acre tract of land described in a deed to Robert J. Houlihan,
Trustee of the Jacqueline A. Houlihan Family Trust, as recorded in
Instrument No. 2015-75670 of the Official Records of Denton County,
Texas;
THENCE South 89°33'30" West, along the southerly line of said 61.667
acre tract, the northerly line of said 94.58 acre tract and the
northerly line of a called 5.000 acre tract of land described in a
deed to Robert J. Houlihan, as recorded in Instrument
No. 2015-75669 of the Official Records of Denton County, Texas, a
distance of 1184.22 feet to a 5/8 inch iron rod with plastic cap
stamped "KHA" set for the southwest corner of said 61.667 acre
tract, being on the easterly line of a called 166.34 acre tract of
land described in a deed to ALW 377, LLC, as recorded in Instrument
No. 2018-78707 of the Official Records of Denton County, Texas;
THENCE North 1°40'23" East, departing the northerly line of said
94.58 acre tract, along the westerly line of said 61.667 acre tract
and the easterly line of said 166.34 acre tract, a distance of
2319.56 feet to a 1 inch iron pipe found for the northwest corner of
said 61.667 acre tract, common to the northeast corner of said
166.34 acre tract, being on the southerly line of a called 37.115
acre tract of land described in a deed to Calvin Paul Redfearn, as
recorded in Instrument No. 2014-96676 of the Official Records of
Denton County, Texas, and in the middle of Black Jack Road;
THENCE South 89°23'35" East, along the northerly line of said 61.667
acre tract, the southerly line of said 37.115 acre tract, the
southerly line of a called 20.236 acre tract of land described in a
deed to Gary Conway and Debbie Conway, as recorded in Instrument
No. 2019-158825 of the Official Records of Denton County, Texas,
and the southerly line of said Tract I, a distance of 1141.49 feet
to the POINT OF BEGINNING and containing 61.611 acres (2,683,778
square feet) of land, more or less.
HIGH POINTE RANCH MUNICIPAL UTILITY DISTRICT NO. 1 - TRACT 3
BEING a tract of land situated in the F. Trevino Survey, Abstract
No. 1243, Denton County, Texas, and being all of a called 41.640
acre tract of land described in a Warranty Deed with Vendor's Lien
to Michael Ray Self and spouse, Hannah Carter Self, as recorded in
Instrument No. 2020-72317 of the Official Records of Denton County,
Texas, and being more particularly described as follows:
BEGINNING at a mag nail set for the northwest corner of said 41.640
acre tract, common to the northeast corner of a called 61.667 acre
tract of land described in a deed to Betsy Turner, as recorded in
Instrument No. 97-0010270 of the Official Records of Denton County,
Texas, being on the southerly line of Tract I described in a deed to
LTR Dressage, LLC, as recorded in Instrument No. 2012-60776 of the
Official Records of Denton County, Texas, and in the centerline of
Black Jack Road, a variable width right-of-way, no record found;
THENCE South 89°10'02" East, along a northerly line of said 41.640
acre tract, the southerly line of said Tract I, the southerly line
of a called 22.380 acre tract of land described as Tract II in said
deed recorded in Instrument No. 2012-60776 of the Official Records
of Denton County, Texas, and the centerline of said Black Jack Road,
a distance of 570.47 feet to a 1 inch iron pipe found for the
northerly northeast corner of said 41.640 acre tract, common to the
northwest corner of a called 14.975 acre tract of land described in
a deed to K & T Swan Family Limited Partnership, L.P., as recorded
in Instrument No. 2017-78524 of the Official Records of Denton
County, Texas;
THENCE South 1°07'20" East, departing the southerly line of said
Tract II and the centerline of said Black Jack Road, along an
easterly line of said 41.640 acre tract and the westerly line of
said 14.975 acre tract, a distance of 1528.04 feet to a 1/2 inch
iron rod found for the southwest corner of said 14.975 acre tract,
common to an ell corner of said 41.640 acre tract;
THENCE South 89°22'10" East, along a northerly line of said 41.640
acre tract and the southerly line of said 14.975 acre tract, a
distance of 570.06 feet to a 3/8 inch iron rod found for the
southerly northeast corner of said 41.640 acre tract, common to the
southeast corner of said 14.975 acre tract;
THENCE South 1°04'44" East, along an easterly line of said 41.640
acre tract, a distance of 745.84 feet to a 1/2 inch iron pipe found
for the southeast corner of said 41.640 acre tract, common to the
northeast corner of a called 16.597 acre tract of land described in
a deed to Phillip J. Anton and wife, Karen M. Anton, as recorded in
Instrument No. 95-65740 of the Official Records of Denton County,
Texas;
THENCE South 89°33'30" West, along the southerly line of said 41.640
acre tract, the northerly line of said 16.597 acre tract, the
northerly line of a called 6.703 acre tract of land described in a
deed to Phillip John Anton and wife, Karen Marie Anton, as recorded
in Instrument No. 2005-92268 of the Official Records of Denton
County, Texas, and the northerly line of a called 94.58 acre tract
of land described in a deed to Robert J. Houlihan, Trustee of the
Jacqueline A. Houlihan Family Trust, as recorded in Instrument
No. 2015-75670 of the Official Records of Denton County, Texas, a
distance of 1209.41 feet to a 5/8 inch iron rod with plastic cap
stamped "KHA" set for the southwest corner of said 41.640 acre
tract, common to the southeast corner of aforesaid 61.667 acre
tract;
THENCE North 0°37'22" East, departing the northerly line of said
94.58 acre tract, along the westerly line of said 41.640 acre tract
and the easterly line of said 61.667 acre tract, a distance of
2297.48 feet to the POINT OF BEGINNING and containing 41.650 acres
(1,814,290 square feet) 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, 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
7919A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7919A.0306 to read as
follows:
Sec. 7919A.0306. 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 this Act takes effect March 31, 2022.
* * * * *