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.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2251 By:  Springer
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  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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