Bill Text: TX SB2251 | 2021-2022 | 87th Legislature | Comm Sub
Bill Title: Relating to the creation of the Mustang 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-05-21 - Recommendations filed with the Senate [SB2251 Detail]
Download: Texas-2021-SB2251-Comm_Sub.html
By: Springer | S.B. No. 2251 | |
(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.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 2251 | By: Springer |
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relating to the creation of the Mustang 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 7942A to read as follows: | ||
CHAPTER 7942A. MUSTANG RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF | ||
DENTON COUNTY | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7942A.0101. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "City" means the City of Pilot Point, Texas. | ||
(3) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(4) "Director" means a board member. | ||
(5) "District" means the Mustang Ranch Municipal | ||
Utility District No. 1 of Denton County. | ||
Sec. 7942A.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 7942A.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. 7942A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
7942A.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. 7942A.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. 7942A.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. 7942A.0201. GOVERNING BODY; TERMS. (a) The district | ||
is governed by a board of five elected directors. | ||
(b) Except as provided by Section 7942A.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 7942A.0202. TEMPORARY DIRECTORS. (a) On or after | ||
October 1, 2021, 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 7942A.0103; or | ||
(2) October 1, 2025. | ||
(c) If permanent directors have not been elected under | ||
Section 7942A.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 7942A.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. 7942A.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 7942A.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. 7942A.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. 7942A.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. 7942A.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. 7942A.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 the | ||
division of the district, and a new district has all the powers and | ||
duties of the district. | ||
(c) Any 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 | ||
7942A.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 or among 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) Any new district created by the division of the district | ||
shall hold a confirmation and directors' election as required by | ||
Section 7942A.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) Municipal consent to the creation of the district and to | ||
the inclusion of land in the district granted under Section | ||
7942A.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. | ||
(j) Any 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. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
Sec. 7942A.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 | ||
7942A.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. 7942A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 7942A.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. 7942A.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. 7942A.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. 7942A.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. 7942A.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 Mustang Ranch Municipal Utility District | ||
No. 1 of Denton County initially includes all the territory | ||
contained in the following area: | ||
BEING a tract of land situated in the Charles Fliesner | ||
Survey, Abstract No. 431 and the Charles Mossenton Survey, Abstract | ||
No. 808, Denton County, Texas, and being all of a called | ||
669.40-acre tract of land conveyed to Michael Hall Shelby Revocable | ||
Family Trust, as evidenced in a Special Warranty Deed, recorded in | ||
Instrument No. 2017-35430 of the Official Records of Denton County, | ||
Texas, and being more particularly described by metes and bounds as | ||
follows: | ||
BEGINNING at a 1/2-inch iron rod with an orange cap, stamped | ||
"KAZ" found for the northwest corner of said 669.40-acre tract and | ||
the northerly, northeast corner of a called 1,028.306-acre tract of | ||
land conveyed to Bert Field, Jr., as evidenced in a Warranty Deed, | ||
recorded in Volume 729, Page 561 of the Deed Records of Denton | ||
County, Texas, same also being on the southerly right of way line of | ||
F. M. 455, an 80' wide right of way as described in a deed to the | ||
State of Texas, recorded in Volume 334, Page 119 of the Deed Records | ||
of Denton County, Texas; | ||
THENCE South 88°35'39" East, along the northerly line of said | ||
669.40-acre tract and the southerly right of way line of said F. M. | ||
455, a distance of 338.12 feet to a 1/2-inch iron rod with an orange | ||
cap, stamped "KAZ" found for the beginning of a tangent curve to the | ||
right having a central angle of 09°46'00", a radius of 2,824.79 | ||
feet, a chord bearing and distance of South 83°42'39" East, 480.93 | ||
feet; | ||
THENCE in a southeasterly direction, continuing along the | ||
northerly line of said 669.40-acre tract and the southerly right of | ||
way line of said F. M. 455, along said curve to the right, an arc | ||
distance of 481.52 feet to a point for corner; | ||
THENCE South 78°49'39" East, continuing along the northerly | ||
line of said 669.40-acre tract and the southerly right of way line | ||
of said F. M. 455, a distance of 1,475.57 feet to a 5/8-inch iron rod | ||
with a red plastic cap, stamped "KHA" set for corner; | ||
THENCE South 78°43'39" East, continuing along the northerly | ||
line of said 669.40-acre tract and the southerly right of way line | ||
of said F. M. 455, a distance of 1657.57 feet to a 1/2-inch iron rod | ||
with an orange cap, stamped "KAZ" found for the beginning of a | ||
tangent curve to the right having a central angle of 06°48'00", a | ||
radius of 3,779.72 feet, a chord bearing and distance of South | ||
75°19'39" East, 448.32 feet; | ||
THENCE in a southeasterly direction, continuing along the | ||
northerly line of said 669.40-acre tract and the southerly right of | ||
way line of said F. M. 455, along said curve to the right, an arc | ||
distance of 448.59 feet to a 1/2-inch iron rod with an orange cap, | ||
stamped "KAZ" found for corner; | ||
THENCE South 71°55'39" East, continuing along the northerly | ||
line of said 669.40-acre tract and the southerly right of way line | ||
of said F. M. 455, a distance of 888.92 feet to a 5/8-inch iron rod | ||
with a red plastic cap, stamped "KHA" set for corner; | ||
THENCE South 71°24'39" East, continuing along the northerly | ||
line of said 669.40-acre tract and the southerly right of way line | ||
of said F. M. 455, a distance of 194.87 feet to a 1/2-inch iron rod | ||
with an orange cap, stamped "KAZ" found for the northeast corner of | ||
said 669.40-acre tract, same being the northwest corner of a called | ||
Tract 2 (137.91-acres), conveyed to Sharon Anne Shelby, as | ||
evidenced in a Partition Deed, recorded in Instrument No. 2016-5887 | ||
of the Official Records of Denton County, Texas; | ||
THENCE South 00°00'05" East, departing the southerly right of | ||
way line of said F. M. 455, along the easterly line of said | ||
669.40-acre tract and the westerly line of said Tract 2 | ||
(137.91-acres), and generally with a barbed wire fence, a distance | ||
of 4,776.49 feet to a 5/8-inch iron rod with a red plastic cap, | ||
stamped "KHA" set in an asphalt road, known as Hames Road, for the | ||
southeast corner of said 669.40-acre tract and the southwest corner | ||
of said Tract 2 (137.91-acres), same being on the northerly line of | ||
a called Tract 1 (87.748-acres), conveyed to TLD Willard, Ltd., as | ||
evidenced in a Special Warranty Deed, recorded in Instrument | ||
No. 2014-111011 of the Official Records of Denton County, Texas; | ||
THENCE North 89°56'35" West, along the southerly line of said | ||
669.40-acre tract, the northerly line of said Tract 1 | ||
(87.748-acres), and along said Hames Road, a distance of 116.68 | ||
feet to a 3/4-inch iron rod found for the northwest corner of said | ||
Tract 1 (87.748-acres) and the northeast corner of a called | ||
12.095-acre tract of land, conveyed to Jeff D. Kappel, et ux, as | ||
evidenced in a Warranty Deed, recorded in Volume 5085, Page 1484 of | ||
the Deed Records of Denton County, Texas; | ||
THENCE North 89°39'47" West, continuing along the southerly | ||
line of said 669.40-acre tract, the northerly line of said | ||
12.095-acre tract and said Hames Road, a distance of 705.49 feet to | ||
a 5/8-inch iron rod found for the northwest corner of said | ||
12.096-acre tract and the northeast corner of a called 6.05-acre | ||
tract, conveyed to Elias Loredo, el al, as evidenced in a Warranty | ||
Deed, recorded in Instrument No. 2016-92822 of the Official Records | ||
of Denton County, Texas; | ||
THENCE North 89°35'57" West, continuing along the southerly | ||
line of said 669.40-acre tract, the northerly line of said | ||
6.05-acre tract and said Hames Road, a distance of 708.43 feet to a | ||
3/4-inch iron rod found in a bend of said Hames Road, for the | ||
northwest corner of said 6.05-acre tract, same being the northeast | ||
corner of a called Tract 2 (146.593-acres), conveyed to TLD | ||
Willard, Ltd., as evidenced in a Special Warranty Deed, recorded in | ||
Instrument No. 2014-111011 of the Official Records of Denton | ||
County, Texas; | ||
THENCE North 89°28'39" West, departing said Hames Road, | ||
continuing along the southerly line of said 699.40-acre tract and | ||
the northerly line of said Tract 2 (146.593-acres), a distance of | ||
3,408.99 feet to a 5/8-inch iron rod with a red plastic cap, stamped | ||
"KHA" set for an angle point; | ||
THENCE North 89°38'21" West, continuing along the southerly | ||
line of said 699.40-acre tract and the northerly line of said Tract | ||
2 (146.593-acres), passing at a distance of 82.62 feet, a found | ||
1/2-inch iron rod, continuing for a total distance of 455.62 feet to | ||
a 1/2-inch iron rod found for the southwest corner of said | ||
699.40-acre tract and a southeasterly corner of aforesaid | ||
1,028.306-acre Bert Fields Jr., tract; | ||
THENCE North 00°24'46" East, along the westerly line of said | ||
699.40-acre tract, the easterly line of said 1,028.306-acre tract, | ||
and along a barbed wire fence, a distance of 5,855.81 feet to the | ||
POINT OF BEGINNING and containing 669.396 acres (29,158,886 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 | ||
7942A, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 7942A.0307 to read as | ||
follows: | ||
Sec. 7942A.0307. 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 October 1, 2021. | ||
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