By: Sanford (Senate Sponsor - Springer) H.B. No. 4590
         (In the Senate - Received from the House May 17, 2021;
  May 17, 2021, read first time and referred to Committee on Local
  Government; May 22, 2021, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 0;
  May 22, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 4590 By:  Springer
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the TRR 243 Municipal Management
  District; providing authority to issue bonds and impose
  assessments, fees, and taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3793 to read as follows:
  CHAPTER 3793. TRR 243 MUNICIPAL MANAGEMENT DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 3793.0101.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Celina, Texas.
               (3)  "Commission" means the Texas Commission on
  Environmental Quality.
               (4)  "Director" means a board member.
               (5)  "District" means the TRR 243 Municipal Management
  District.
         Sec. 3793.0102.  CREATION AND NATURE OF DISTRICT. The
  district is a special district created under Sections 52 and 52-a,
  Article III, and Section 59, Article XVI, Texas Constitution.
         Sec. 3793.0103.  PURPOSE; LEGISLATIVE FINDINGS. (a) The
  creation of the district is essential to accomplish the purposes of
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution, and other public purposes stated in this
  chapter. By creating the district and in authorizing the city and
  other political subdivisions to contract with the district, the
  legislature has established a program to accomplish the public
  purposes set out in Section 52-a, Article III, Texas Constitution.
         (b)  The creation of the district is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, housing, tourism, recreation, the arts,
  entertainment, economic development, safety, and the public
  welfare in the district.
         (c)  This chapter and the creation of the district may not be
  interpreted to relieve the city from providing the level of
  services provided to the area in the district as of the effective
  date of the Act enacting this chapter. The district is created to
  supplement and not to supplant the city services provided in the
  district.
         Sec. 3793.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a) The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the improvements and services to be provided by
  the district under powers conferred by Sections 52 and 52-a,
  Article III, and Section 59, Article XVI, Texas Constitution, and
  other powers granted under this chapter.
         (c)  The district is created to accomplish the purposes of a
  municipal management district as provided by general law and
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution.
         (d)  The creation of the district is in the public interest
  and is essential to:
               (1)  further the public purposes of developing and
  diversifying the economy of the state;
               (2)  eliminate unemployment and underemployment;
               (3)  develop or expand transportation and commerce; and
               (4)  provide quality residential housing.
         (e)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the district, and of the public;
               (2)  provide needed funding for the district to
  preserve, maintain, and enhance the economic health and vitality of
  the district territory as a community and business center; and
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and by landscaping and
  developing certain areas in the district, which are necessary for
  the restoration, preservation, and enhancement of scenic beauty.
         (f)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, parking, and street art objects are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (g)  The district will not act as the agent or
  instrumentality of any private interest even though the district
  will benefit many private interests as well as the public.
         Sec. 3793.0105.  DISTRICT TERRITORY. (a) The district is
  composed of the territory described by Section 2 of the Act enacting
  this chapter, as that territory may have been modified under other
  law.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake 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 contract;
               (3)  authority to borrow money or issue bonds or other
  obligations described by Section 3793.0501 or to pay the principal
  and interest of the bonds or other obligations;
               (4)  right to impose or collect an assessment, or
  collect other revenue; or
               (5)  legality or operation.
         Sec. 3793.0106.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3793.0107.  CONSTRUCTION OF CHAPTER. This chapter
  shall be liberally construed in conformity with the findings and
  purposes stated in this chapter.
         Sec. 3793.0108.  CONFLICTS OF LAW. This chapter prevails
  over any provision of Chapter 375, Local Government Code, that is in
  conflict or inconsistent with this chapter.
         Sec. 3793.0109.  CONSENT OF MUNICIPALITY AND DEVELOPMENT
  AGREEMENT REQUIRED. (a) The board may not hold an election to
  authorize the issuance of bonds until:
               (1)  the governing body of the city by ordinance or
  resolution consents to the creation of the district and to the
  inclusion of land in the district; and
               (2)  the governing body of the city has entered into a
  development agreement with the owner of a majority of the land in
  the district.
         (b)  The city's consent must be granted in the manner
  provided by Section 54.016, Water Code, for including land within
  the corporate limits or extraterritorial jurisdiction of a city.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3793.0201.  GOVERNING BODY; TERMS. 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. One director is appointed by the city, and
  four directors are appointed by the commission as provided by
  Sections 3793.0202 and 3793.0203, respectively.
         Sec. 3793.0202.  APPOINTMENT AND REMOVAL OF DIRECTOR
  APPOINTED BY CITY. (a) The governing body of the city shall
  appoint one director who must be:
               (1)  at least 18 years of age; and
               (2)  a resident of the city.
         (b)  At any time the governing body of the city may remove the
  director appointed by the city and appoint a director to serve the
  remainder of the removed director's term.
         Sec. 3793.0203.  APPOINTMENT BY COMMISSION. (a) Before the
  term of a director other than a director appointed under Section
  3793.0202 expires, the board shall recommend to the commission the
  appropriate number of persons to serve as successor directors. The
  commission shall appoint as directors the persons 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. 3793.0204.  VACANCY.  If a vacancy occurs on the board,
  the remaining directors shall appoint a director for the remainder
  of the unexpired term.
         Sec. 3793.0205.  DIRECTOR'S OATH OR AFFIRMATION. (a) A
  director shall file the director's oath or affirmation of office
  with the district, and the district shall retain the oath or
  affirmation in the district records.
         (b)  A director shall file a copy of the director's oath or
  affirmation with the secretary of the city.
         Sec. 3793.0206.  OFFICERS. The board shall elect from among
  the directors a chair, a vice chair, and a secretary. The offices
  of chair and secretary may not be held by the same person.
         Sec. 3793.0207.  COMPENSATION; EXPENSES. (a) The district
  may compensate each director in an amount not to exceed $150 for
  each board meeting. The total amount of compensation a director may
  receive each year may not exceed $7,200.
         (b)  A director is entitled to reimbursement for necessary
  and reasonable expenses incurred in carrying out the duties and
  responsibilities of the board.
         Sec. 3793.0208.  LIABILITY INSURANCE. The district may
  obtain and pay for comprehensive general liability insurance
  coverage from a commercial insurance company or other source that
  protects and insures a director against personal liability and from
  all claims relating to:
               (1)  actions taken by the director in the director's
  capacity as a member of the board;
               (2)  actions and activities taken by the district; or
               (3)  the actions of others acting on behalf of the
  district.
         Sec. 3793.0209.  NO EXECUTIVE COMMITTEE. The board may not
  create an executive committee to exercise the powers of the board.
         Sec. 3793.0210.  INITIAL DIRECTORS. (a) On or after
  September 1, 2021, the owner or owners of a majority of the assessed
  value of the real property in the district according to the most
  recent certified tax appraisal rolls for the county may submit a
  petition to the commission requesting that the commission appoint
  as initial directors the four persons named in the petition. The
  commission shall appoint as initial directors the four persons
  named in the petition.
         (b)  The governing body of the city shall appoint one initial
  director.
         (c)  The initial directors shall determine by lot which three
  positions expire June 1, 2023, and which two positions expire June
  1, 2025.
         (d)  This section expires September 1, 2023.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 3793.0301.  GENERAL POWERS AND DUTIES.  The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3793.0302.  IMPROVEMENT PROJECTS AND SERVICES. (a)
  Subject to Subsection (b), the district may provide, design,
  construct, acquire, improve, relocate, operate, maintain, or
  finance an improvement project or service using money available to
  the district, or contract with a governmental or private entity to
  provide, design, construct, acquire, improve, relocate, operate,
  maintain, or finance an improvement project or service authorized
  under this chapter or Chapter 375, Local Government Code.
         (b)  The district may not construct or finance an improvement
  project, other than a water, sewer, or drainage facility or road,
  unless the governing body of the city by ordinance or resolution
  consents to the construction or financing.
         (c)  The district may issue bonds, notes, or other
  obligations to maintain or repair an existing improvement project
  only if the governing body of the city by ordinance or resolution
  consents to the issuance.
         Sec. 3793.0303.  LOCATION OF IMPROVEMENT PROJECT. A
  district improvement project may be located inside or outside of
  the district.
         Sec. 3793.0304.  OWNERSHIP OF IMPROVEMENT PROJECTS. (a)
  Before a district improvement project may be put into operation,
  the district must transfer ownership of the project to the city.
         (b)  The transfer of ownership is complete on the city's
  acceptance of ownership.
         Sec. 3793.0305.  RETAIL WATER AND SEWER SERVICES PROHIBITED.
  The district may not provide retail water or sewer services.
         Sec. 3793.0306.  ADDING OR REMOVING TERRITORY. (a) Subject
  to Subsection (b), the board may add or remove territory as provided
  by Subchapter J, Chapter 49, Water Code.
         (b)  The district may add territory as described by
  Subsection (a) only if the governing body of the city by ordinance
  or resolution consents to the addition.
         Sec. 3793.0307.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
         Sec. 3793.0401.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of the district's money.
         Sec. 3793.0402.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
  The district may acquire, construct, or finance an improvement
  project or service authorized by this chapter or Chapter 375, Local
  Government Code, using any money available to the district.
         Sec. 3793.0403.  METHOD OF NOTICE FOR HEARING. The district
  may mail the notice required by Section 375.115(c), Local
  Government Code, by certified or first class United States mail.
  The board shall determine the method of notice.
         Sec. 3793.0404.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
  The board by resolution may impose and collect an assessment for any
  purpose authorized by this chapter in all or any part of the
  district.
         (b)  An assessment, a reassessment, or an assessment
  resulting from an addition to or correction of the assessment roll
  by the district, penalties and interest on an assessment or
  reassessment, an expense of collection, and reasonable attorney's
  fees incurred by the district are:
               (1)  a first and prior lien against the property
  assessed;
               (2)  superior to any other lien or claim other than a
  lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  the personal liability of and a charge against the
  owners of the property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (d)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         (e)  The district may not impose an assessment on a
  municipality, county, or other political subdivision.
         Sec. 3793.0405.  NOTICE OF ASSESSMENTS. Annually, the board
  shall file with the secretary of the city written notice that
  specifies the assessments the district will impose in the
  district's next fiscal year in sufficient clarity to describe the
  assessments for the operation and maintenance of the district and
  the assessments for the payment of debt service of obligations
  issued or incurred by the district.
  SUBCHAPTER E.  TAXES AND BONDS
         Sec. 3793.0501.  BONDS AND OTHER OBLIGATIONS. (a) The
  district may issue bonds, notes, or other obligations payable
  wholly or partly from ad valorem taxes or assessments in the manner
  provided by Subchapter J, Chapter 375, Local Government Code.
         (b)  In exercising the district's borrowing power, the
  district may issue a bond or other obligation in the form of a bond,
  note, certificate of participation or other instrument evidencing a
  proportionate interest in payments to be made by the district, or
  other type of obligation.
         (c)  In addition to the sources of money described by
  Subchapter J, Chapter 375, Local Government Code, district bonds
  may be secured and made payable wholly or partly by a pledge of any
  part of the money the district receives from improvement revenue or
  from any other source.
         (d)  Not later than the 30th day before the date the district
  holds a bond sale, the district shall provide the governing body of
  the city written notice of the sale.
  SUBCHAPTER F.  DISSOLUTION
         Sec. 3793.0601.  DISSOLUTION BY CITY ORDINANCE. (a) The
  governing body of the city may dissolve the district by ordinance.
         (b)  The governing body may not dissolve the district until:
               (1)  water, sanitary, sewer, and drainage improvements
  and roads have been constructed to serve at least 90 percent of the
  developable territory of the district; and
               (2)  the district has reimbursed each party that has an
  agreement with the district for all costs advanced to or on behalf
  of the district.
         (c)  Until the district is dissolved, the district is
  responsible for all bonds and other obligations of the district.
         Sec. 3793.0602.  COLLECTION OF ASSESSMENTS AND OTHER
  REVENUE. (a) If the dissolved district has bonds or other
  obligations outstanding secured by and payable from assessments or
  other revenue, other than revenue from ad valorem taxes, the city
  shall succeed to the rights and obligations of the district
  regarding enforcement and collection of the assessments or other
  revenue.
         (b)  The city shall have and exercise all district powers to
  enforce and collect the assessments or other revenue to pay:
               (1)  the bonds or other obligations when due and
  payable according to their terms; or
               (2)  special revenue or assessment bonds or other
  obligations issued by the city to refund the outstanding bonds or
  obligations.
         Sec. 3793.0603.  ASSUMPTION OF ASSETS AND LIABILITIES. (a)
  After the city dissolves the district, the city assumes, subject to
  the appropriation and availability of funds, the obligations of the
  district, including any bonds or other debt payable from
  assessments or other district revenue.
         (b)  If the city dissolves the district, the board shall
  transfer ownership of all district property to the city.
         SECTION 2.  The TRR 243 Municipal Management District
  initially includes all the territory contained in the following
  area:
  BEING that certain tract of land situated in the Collin County
  School Land Survey, Abstract No. 168, Collin County, Texas, and
  being all of that certain called 243.820 acre tract of land as
  conveyed to Laura Latham Shinker, Elizabeth Brent and David Brent,
  as recorded in Volume 967, Page 705 of the Deed Records of Collin
  County, Texas, and also being all of that certain called 243.859
  acre tract of land as conveyed to Godwin Family Investments, Ltd.,
  by deed recorded in Volume 5634, Page 3372, said Deed Records, and
  being more particularly described by metes and bounds as follows:
  BEGINNING at a 5/8 inch iron rod found for the southeast corner of
  said Godwin Family Investments tract, same being the southwest
  corner of that certain tract of land to Carol J. King or Julia King
  Needum, and their Successors, as Trustee of the King Family Trust,
  as recorded in Instrument no. 2012102200134910, Official Public
  Records, Collin County, Texas, same being in the north right-of-way
  line of F.M. Highway 428 (a 105' public right-of-way at this point);
  THENCE Sough 89 deg. 59 min. 43 sec. West, along the common line of
  said Godwin Family Investments tract, and the north right-of-way
  line of said F. M. Highway No. 428, a distance of 2602.61 feet to a
  1/2 inch iron pipe found for the most southerly southwest corner of
  said Godwin Family Investments tract;
  THENCE North 45 deg. 11 min. 54 sec. West, continuing along the
  common line of said Godwin Family Investments tract, and the north
  right-of-way line of said F. M. Highway 428, a distance of 42.50
  feet to a point;
  THENCE South 89 deg. 59 min. 06 sec. West, continuing along the
  common line of said Godwin Family Investments tract, and the north
  right-of-way line of said F. M. Highway No. 428, a distance of 17.50
  feet to a 1/2 inch iron rod found in the approximate center of
  County Road No. 54 (a gravel paved prescriptive right-of-way);
  THENCE North 00 deg. 02 min. 21 sec. West, along the west line of
  said Godwin Family Investments tract, and generally along the
  centerline of said County Road No. 54, a distance of 3965.31 feet to
  a 3/8 inch rod found for the northwest corner of said Godwin Family
  Investments tract, same being the southwest corner of that certain
  tract of land to Michael C. Hollifield and wife, Deborah Baker
  Hollifield, husband and wife, by deed recorded in Volume 5696, Page
  1982, aforesaid Deed Records;
  THENCE South 89 deg. 57 min. 51 sec. East, along the common line of
  said Godwin Family Investments tract, and said Hollifield tract,
  passing the southeast corner of said Hollifield tract, same being
  the southwest corner of that certain tract of land to the Pollard
  Family Living Trust, by deed recorded in County Clerk's File
  No. 20120608000680240, aforesaid Official Public Records, and
  continuing along the common line of said Godwin Family Investments
  tract, and said Pollard tract, a total distance of 2669.06 feet to a
  3/4 inch iron rod found for the northeast corner of said Godwin
  Family Investments tract, same being the southeast corner of said
  Pollard tract, same being in the west line of that certain tract of
  land to Douglas J. Barker and wife, Saundra Barker, by deed recorded
  in Volume 1159, Page 423, said Deed Records;
  THENCE South 00 deg. 14 min. 32 sec. West, along common line of said
  Godwin Family Investments tract, and said Pollard tract, passing
  the southwest corner of said Pollard tract, same being the most
  northerly northwest corner of that certain tract of land to Old
  Celina, Ltd., by deed recorded in Volume 5208, Page 3376, said Deed
  Records, and continuing along the common line of said Godwin Family
  Investments tract, and said Old Celina tract, a total distance of
  1400.08 feet to a Bois d' Arc Fence found for the most westerly
  southwest corner of said Old Celina tract, same being the northwest
  corner of aforesaid King tract;
  THENCE South 00 deg. 13 min. 28 sec. West, along the common line of
  said Godwin Family Investments tract, and said King tract, a
  distance of 2593.32 feet to the POINT OF BEGINNING and containing
  243.846 acres of computed 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,
  lieutenant governor, and 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 have been
  fulfilled and accomplished.
         SECTION 4.  This Act takes effect September 1, 2021.
 
  * * * * *