Bill Text: TX SB2250 | 2021-2022 | 87th Legislature | Comm Sub

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Bill Title: Relating to the creation of the East Collin County 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-05-21 - Recommendations filed with the Senate [SB2250 Detail]

Download: Texas-2021-SB2250-Comm_Sub.html

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By: Springer S.B. No. 2250
(In the Senate - Filed May 5, 2021; May 6, 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. 2250 By: Springer

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the East Collin County 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 7938A to read as follows:
CHAPTER 7938A. EAST COLLIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7938A.0101. 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 East Collin County Municipal
Utility District No. 1.
Sec. 7938A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7938A.0103. CONFIRMATION AND DIRECTOR 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. 7938A.0104. CONDITIONS PRECEDENT TO CONFIRMATION
ELECTION. (a) The temporary directors may not hold an election
under Section 7938A.0103 until:
(1) 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; and
(2) the district has entered into a contract with a
municipality, Collin County, or another entity:
(A) for adequate supplemental police, fire,
emergency, and animal control services for the district; and
(B) that is approved by the Commissioners Court
of Collin County under Subsection (c).
(b) A contract under Subsection (a) may include a provision
that the contract takes effect only on the approval of the
Commissioners Court of Collin County and the voters in the district
voting in an election held for that purpose.
(c) The Commissioners Court of Collin County shall review a
contract under Subsection (a) and evaluate the supplemental police,
fire, emergency, and animal control services provided in the
contract. If the commissioners court determines that the contract
provides adequate services, the commissioners court shall adopt a
resolution stating that the contract has met the requirements of
Subsection (a).
Sec. 7938A.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. 7938A.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. 7938A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7938A.0202, directors
serve staggered four-year terms.
Sec. 7938A.0202. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, 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 7938A.0103; or
(2) the fourth anniversary of the effective date of
the Act enacting this chapter.
(c) If permanent directors have not been elected under
Section 7938A.0103 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 7938A.0103; 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. 7938A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7938A.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. 7938A.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. 7938A.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.
(d) The district shall maintain all roads that the district
constructs except for roads constructed by the district that
another governmental entity agrees to maintain.
Sec. 7938A.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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7938A.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
7938A.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. 7938A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7938A.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. 7938A.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. 7938A.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. 7938A.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. 7938A.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 East Collin County Municipal Utility
District No. 1 initially includes all the territory contained in
the following area:
TRACT 1 PROPERTY DESCRIPTION:
BEING 183.834 acres of land situated in the H. Walters
Survey, Abstract No. 958, Collin County, Texas and being all of a
183.753 acre tract of land described in a Deed of Trust executed by
Carl Raymond Montgomery and wife, Rheda Beth Montgomery to Paul
Bennett or James Blakey, trustees, recorded in Volume 2292, Page
279 of the Deed Records of Collin County, Texas (DRCCT) and this
tract being more particularly described as follows:
BEGINNING at a point for corner in a Bois D'Arc tree in the
south line of a 73.279 acre tract described in a Deed to Marilyn
Rice, recorded in Volume 1732, Page 369 (DRCCT), at the northwest
corner of said 183.753 acre tract common to the northeast corner of
a 43.635 acre tract of land described in a Deed to Raymon Webb
Montgomery and Christa Carol Montgomery, recorded as Instrument
No. 20131125001578440 (DRCCT), from which a steel fence post found
for reference bears South 02°54'15" East a distance of 3.23 feet;
THENCE South 89°54'18" East, along the north line of said
183.753 acre tract common to the south line of said 73.279 acre
tract, a distance of 372.95 feet, to a 5/8" iron rod with a yellow
cap, stamped "RPLS 3963", set at an angle point thereof;
THENCE South 89°57'56" East, along the north line of said
183.753 acre tract common to the south lines of said 73.279 acre
tract and the south line of a 33.279 acre tract of land described in
a Deed to Amy Warren, recorded as Instrument No. 20080812000981780
(DRCCT), a distance of 1003.73 feet, to a 5/8" iron rod found for
corner near the center of a creek at an exterior ell corner of said
183.753 acre tract common to an interior ell corner of said 33.279
acre tract;
THENCE Southeasterly, along the common lines of said 183.753
acre tract and 33.279 acre tract, the following courses:
South 00°09'50" West, a distance of 65.91 feet, to a 5/8" iron
rod found for corner;
South 75°09'08" East, a distance of 718.73 feet, to a point
for corner in a west line of a 36.1891 acre tract described in a Deed
to Gene Doc Sohn and Sun Young Choi, husband and wife, and
Kyoungjoon Cho and Eun Young Choi, husband and wife, recorded as
Instrument No. 20141113001243240 (DRCCT) at the northeast corner
of said 183.753 acre tract common to a south corner of said 33.279
acre tract, from which a 60D Nail, set for reference bears South
13°38'28" East a distance of 26.03 feet;
THENCE along the common lines of said 183.753 acre tract and
said 36.1891 acre tract, the following courses:
South 00°53'07" West, a distance of 32.60 feet, to a 5/8" iron
rod found for corner;
South 82°38'52" West, a distance of 22.40 feet, to a 5/8" iron
rod found for corner;
THENCE South 00°12'03" West, along an east line of said
183.753 acre tract common to the west lines of said 36.1891 acre
tract, a 50.001 acre tract described in a Deed to David Reeder and
wife, Becky Reeder, recorded as Instrument No. 92-0071701 (DRCCT),
and Spencers Estates Addition, an Addition to Collin County,
Texas, recorded in Cabinet H, Slide 622 of the Plat Records of
Collin County, Texas (PRCCT), respectively, a distance of 3528.84
feet, to a 1/2" iron rod found for corner in the north right-of-way
line of FM 1778 (a 90' a right-of-way) at the southeast corner of
said 183.753 acre tract common to the southwest corner of last
mentioned Addition;
THENCE South 86°40'47" West, along a south line of said
183.753 acre tract common to the north right-of-way line of said FM
1778, a distance of distance of 430.99 feet, to a 5/8" iron rod with
a yellow cap, stamped "RPLS 3963", set for corner at an exterior ell
corner of said 183.753 acre tract common to the southeast corner of
a 2.00 acre tract described in a Deed to Raymon W. Montgomery,
recorded in Volume 2990, Page 495 (DRCCT);
THENCE along common lines of said 183.753 acre tract and said
2.00 acre tract, the following courses:
North 00°42'56" West, a distance of 540.84 feet, to a 5/8"
iron rod found for corner;
South 85°10'46" West, a distance of 161.95 feet, to a 1/2"
iron rod found for corner;
South 00°43'58" East, a distance of 540.10 feet, to a 5/8"
iron rod with a yellow cap, stamped "RPLS 3963", set for corner in
the north right-of-way line of said FM 1778 at an exterior ell
corner of said 183.753 acre tract common to the southwest corner of
said 2.00 acre tract;
THENCE along the common lines of said 183.753 acre tract and
the right-of-way lines of said FM 1778, the following courses:
South 85°09'47" West, a distance of 358.92 feet, to a 5/8"
iron rod found for corner at the beginning of a tangent curve to the
right, having a radius of 2820.26 feet, and a chord which bears
South 87°45'47" West a distance of 255.85 feet;
Southwesterly, along said curve to the right, having a
central angle of 05°11'58", an arc distance of 255.94 feet, to a 5/8"
iron rod with yellow cap, stamped "RPLS 3963", set for corner;
North 89°38'11" West, a distance of 76.11 feet, to a 5/8" iron
rod found for corner at the southeast corner of a tract of land
described in a Deed to First Baptist Church of Copeville, recorded
in Volume 900, Page 353 (DRCCT);
THENCE along the common lines of said 183.753 acre tract and
said First Baptist Church of Copeville tract, the following
courses:
North 02°55'02" East, a distance of 307.96 feet, to a 5/8"
iron rod with a yellow plastic cap, stamped "RPLS 3963", set for
corner;
North 89°45'11" West, a distance of 517.40 feet, to a wooden
fence post found for corner at the most eastern southeast corner of
said 43.635 acre tract common to the northwest corner of said First
Baptist Church of Copeville tract;
THENCE along the common lines of said 183.753 acre tract and
said 43.635 acre tract, the following courses;
North 63°55'42" West, a distance of 546.96 feet, to a 5/8"
iron rod found for corner;
North 19°42'16" West, a distance of 246.95 feet, to a point
for corner from which an iron axle found for reference bears North
47°16'17" West, a distance of 4.36 feet;
North 88°17'53" East, a distance of 21.83 feet, to a 3/4" iron
pipe found for corner;
North 05°29'46" East, a distance of 3124.24 feet, to THE POINT
OF BEGINNING and containing 8,007,806 square feet, or 183.834 acres
of land.
TRACT 2 PROPERTY DESCRIPTION:
BEING 43.704 acres of land situated in the H. Walters Survey,
Abstract No. 958, Collin County, Texas and being all of a 43.635
acre tract of land described in a Deed to Raymon Webb Montgomery and
Christa Carol Montgomery, recorded as Instrument
No. 20131125001578440 of the Deed Records of Collin County, Texas
(DRCCT) and this tract being more particularly described as
follows:
BEGINNING at a 3/8" iron rod found in the east right-of-way
line of Burlington Northern & SF Rail Road at the northwest corner
of said 43.635 acre tract common to the southwest corner of a 73.279
acre tract of land described in a Deed to Marilyn Rice, recorded in
Volume 1732, Page 369,(DRCCT);
THENCE South 89°23'59" East, along the north line of said
43.635 acre tract common to the south line of said 73.279 acre
tract, a distance of 557.73 feet, to a point for corner in a Bois
D'Arc tree at the northeast corner of said 43.635 acre tract common
to the northwest corner of a 183.753 acre tract of land described in
a Deed of Trust executed by Carl Raymond Montgomery and wife, Rheda
Beth Montgomery to Paul Bennett or James Blakey, trustees, recorded
in Volume 2292, Page 279 (DRCCT), from which a steel fence post
found for reference bears South 02°54'15" East a distance of 3.23
feet;
THENCE along the common lines of said 43.635 acre tract and
said 183.753 acre tract, the following courses:
South 05°29'46" West, a distance of 3124.24 feet, to a 3/4"
iron pipe found for corner;
South 88°17'53" West, a distance of 21.83 feet, to a point for
corner from which an iron axle found for reference bears North
47°16'17" West a distance of 4.36 feet;
South 19°42'16" East, a distance of 246.95 feet, to a 5/8"
iron rod found for corner;
South 63°55'42" East, a distance of 546.96 feet, to a wooden
fence post found for corner at the most eastern southeast corner of
said 43.635 acre tract common to the northwest corner of a tract of
land described in a Deed to First Baptist Church of Copeville,
recorded in Volume 900, Page 353 (DRCCT);
THENCE South 02°37'47" West, along a southeast line of said
43.635 acre tract common to the west line of said First Baptist
Church of Copeville tract, a distance of 321.86 feet, to a point for
corner near the base of a wood highway marker in the north
right-of-way line of FM 1778 (a 60' right-of-way at this point going
west), at the most southern southeast corner of said 43.635 acre
tract;
THENCE North 89°38'13" West, along a south line of said 43.635
acre tract common to the north right-of-way line of said FM 1778, a
distance of 282.00 feet, to a point for corner at a south corner of
said 43.635 acre tract common to the southeast corner of a 8.22 acre
tract of land described in a Deed to Susan Annie Potter and Jon
Trace Hailey, recorded as Instrument No. 20101102001194000
(DRCCT), from which a 1/2" iron rod found for reference bears North
20°20'21" West a distance of 1.42 feet;
THENCE North 20°20'21" West, along a southwest line of said
43.635 acre tract common to the northeast line of said 8.22 acre
tract, a distance of 860.95 feet, to a wood fence post found at a
common corner thereof;
THENCE South 89°34'33" West, along a south line of said 43.635
acre tract common to the north line of said 8.22 acre tract, a
distance of 617.61 feet, to a 5/8" iron rod found for corner at a
common west corner thereof and being in the east right-of-way line
of said Burlington Northern & SF Rail Road, said point being in a
curve to the left, having a radius of 1960.08 feet and a chord which
bears North 15°08'31" East a distance of 671.75 feet;
THENCE Northeasterly, along the west lines of said 43.635
acre tract common to the east right-of-way lines of said Burlington
Northern & SF Rail Road, the following courses:
Northeasterly with said curve to the left, having a central
angle of 19°44'01", an arc distance of 675.09 feet, to the point of
tangent;
North 05°16'30" East, a distance of 2468.30 feet, to THE POINT
OF BEGINNING and containing 1,903,758 square feet, or 43.704 acres
of land.
TRACT 3 PROPERTY DESCRIPTION:
BEING 2.002 acres of land situated in the H. Walters Survey,
Abstract No. 958, Collin County, Texas and being all of a 2.00 acre
tract of land described in a Deed to Raymon W. Montgomery, recorded
in Volume 2990, Page 495 of the Deed Records of Collin County, Texas
(DRCCT) and this tract being more particularly described as
follows:
BEGINNING at a 5/8" iron rod with a yellow cap, stamped "RPLS
3963", set for corner in the north right-of-way line of FM 1778 (a
90' right-of-way) at the southeast corner of said 2.00 acre tract
common to an exterior ell corner of a 183.753 acre tract of land
described in a Deed of Trust executed by Carl Raymond Montgomery and
wife, Rheda Beth Montgomery to Paul Bennett or James Blakey,
trustees, recorded in Volume 2292, Page 279 (DRCCT);
THENCE Southwesterly along the south lines of said 2.00 acre
tract common to the north right-of-way lines of said FM 1778, the
following courses:
South 86°40'47" West, a distance of 29.08 feet, to a 5/8" iron
rod with a yellow cap, stamped "RPLS 3963", set for corner;
South 85°09'47" West, a distance of 132.67 feet, to a 5/8"
iron rod with a yellow cap, stamped "RPLS 3963", set for corner at
the southwest corner of said 2.00 acre tract common to an exterior
ell corner of said 183.753 acre tract;
THENCE along the common lines of said 2.00 acre and 183.753
acre tracts, the following courses:
North 00°43'58" West, a distance of 540.10 feet, to a 1/2"
iron rod found for corner;
North 85°10'46" East, a distance of 161.95 feet, to a 5/8"
iron rod found for corner;
South 00°42'56" East, a distance of 540.84 feet, to THE POINT
OF BEGINNING and containing 87,213 square feet, or 2.002 acres of
land.
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
7938A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7938A.0306 to read as
follows:
Sec. 7938A.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 Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
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