81R6594 GCB-F
  By: Davis, Wendy S.B. No. 2068
  relating to the creation of the Kennedale TownCenter Development
  District; providing authority to impose a tax and issue bonds.
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3866 to read as follows:
         Sec. 3866.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
               (2)  "District" means Kennedale TownCenter Development
         Sec. 3866.002.  CREATION AND NATURE OF DISTRICT. (a)
  Kennedale TownCenter Development District is created as a special
  district under Sections 52 and 52-a, Article III, and Section 59,
  Article XVI, Texas Constitution.
         (b)  The board by resolution may change the district's name.
         Sec. 3866.003.  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
         (b)  The creation of the district is necessary to promote,
  develop, encourage, and maintain transportation, safety,
  employment, commerce, housing, tourism, recreation, the arts,
  entertainment, economic development, and the public welfare in the
  area of the district.
         Sec. 3866.004.  BOUNDARIES. The district includes all the
  territory contained in the following described area:
         Block A Lot 1, Lot 2, Lot 3, and Lot 4A of the Kennedale Retail
  Center Addition; Block A Lot 2 and Lot 3 of the B.T. Webb
  Subdivision; and Municipal Drive from Third Street to Kennedale
  Parkway (US Business Highway 287).
         Sec. 3866.005.  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 creation of the district is in the public interest
  and is essential to:
               (1)  further the public purposes of the development and
  diversification of the economy of the state;
               (2)  eliminate unemployment and underemployment; and
               (3)  develop or expand transportation and commerce.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, employees, visitors, and consumers in the
  district and of the public;
               (2)  provide needed funding to preserve, maintain, and
  enhance the economic health and vitality of the district as a
  community; 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.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, and street art objects are parts of and necessary
  components of a street and are considered to be a street or road
         (f)  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. 3866.006.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
  [Sections 3866.007-3866.020 reserved for expansion]
         Sec. 3866.021.  INITIAL DIRECTORS. (a) The initial board
  consists of the following persons:
               (1)  John Clark
               (2)  Jerry Miller
               (3)  Robert Mundy
               (4)  Bryan Lankhorst
               (5)  Beverly Hayes
         (b)  Of the initial directors, the terms of the first three
  directors named in Subsection (a) expire on January 1, 2011, and the
  terms of the last two directors named in Subsection (a) expire on
  January 1, 2010. Bob Hart shall serve as the ex officio nonvoting
  member for a term to be specified by the governing body of the City
  of Kennedale.
         Sec. 3866.022.  EXPIRATION OF SUBCHAPTER.  This subchapter
  expires January 1, 2011.
  [Sections 3866.023-3866.050 reserved for expansion]
         Sec. 3866.051.  BOARD OF DIRECTORS; TERMS. (a)  The district
  is governed by a board of five voting directors appointed under
  Section 3866.052 who serve staggered two-year terms.
         (b)  The governing body of the City of Kennedale may appoint
  one nonvoting director to serve a term prescribed by the governing
  body. The nonvoting director must be an employee of the City of
  Kennedale and shall serve as an ex officio member in an advisory
  capacity to provide assistance on matters in the district that
  involve the city.
         Sec. 3866.052.  APPOINTMENT OF DIRECTORS. (a) The
  governing body of the City of Kennedale shall appoint directors to
  the board.
         (b)  Sections 375.063, Local Government Code, and 49.052,
  Water Code, do not apply to the district.
         Sec. 3866.053.  REMOVAL OF DIRECTOR. The members of the
  board serve at the pleasure of the governing body of the City of
  Kennedale. The governing body may remove any board member by
  majority vote.
         Sec. 3866.054.  VACANCIES. A vacancy on the board shall be
  filled by the governing body of the City of Kennedale.
         Sec. 3866.055.  CONFLICTS OF INTEREST. Except as provided
  by Chapter 171, Local Government Code, a director may participate
  in all board votes and decisions.
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of the district's money.
  [Sections 3866.057-3866.100 reserved for expansion]
         Sec. 3866.101.  POWERS OF DISTRICT.  The district has all
  powers provided by the general laws on road districts and road
  utility districts created under Section 52, Article III, Texas
  Constitution, and conservation and reclamation districts and
  municipal management districts created under Section 59, Article
  XVI, Texas Constitution, including:
               (1)  Chapters 257 and 441, Transportation Code;
               (2)  Chapter 375, Local Government Code; and
               (3)  Chapters 49 and 54, Water Code.
         Sec. 3866.102.  AGREEMENTS; GRANTS. (a) The district may
  make an agreement with or accept a gift, grant, or loan from any
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  protect the public interest, the district may contract with a
  municipality or county to provide law enforcement services in the
  district for a fee.
  [Sections 3866.104-3866.150 reserved for expansion]
         Sec. 3866.151.  COMPETITIVE BIDDING. Section 375.221, Local
  Government Code, applies to the district only for a contract that
  has a value of more than $25,000.
  ASSESSMENTS, AND IMPACT FEES. The district may impose an ad valorem
  tax, assessment, or impact fee and use the proceeds of the tax,
  assessment, or impact fee for:
               (1)  any district purpose, including the payment of
  debt or other contractual obligations; or
               (2)  the payment of maintenance and operating expenses.
         Sec. 3866.153.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district must hold an election in the manner provided by Chapters 49
  and 54, Water Code, to obtain voter approval before the district
  imposes a maintenance tax or issues bonds payable from ad valorem
         (b)  The board may include more than one purpose in a single
  proposition at an election.
         (c)  If the district obtains the written consent of all
  property owners in the district to impose a maintenance tax or issue
  bonds payable from ad valorem taxes or assessments, the district is
  exempt from the election requirement under Subsection (a) and may
  cancel an election called under Subsection (a).
         Sec. 3866.154.  MAINTENANCE TAX. (a) The district may
  impose an annual ad valorem tax on taxable property in the district
  for any district purpose, including to:
               (1)  maintain and operate the district, including
  improvements constructed or acquired by the district; or
               (2)  provide a service.
         (b)  The board shall determine the tax rate.
         Sec. 3866.155.  ASSESSMENTS. (a) The board by resolution
  may impose and collect an assessment for any purpose authorized by
  this chapter.
         (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:
               (1)  are a first and prior lien against the property
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and charge against
  the owners of the property even if the owners are not named in the
  assessment proceeding.
         (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.
  IMPROVEMENTS WITH ASSESSMENTS.  (a)  The board may not finance a
  service or improvement project with assessments under this chapter
  unless a written petition requesting that service or improvement
  has been filed with the board.
         (b)  A petition requesting a project financed by assessment
  must be signed by  the owners of a majority of the assessed value of
  real property in the district subject to assessment according to
  the most recent certified tax appraisal roll for the county in which
  the property is located.
         Sec. 3866.157.  BONDS AND OTHER OBLIGATIONS. (a) The
  district may issue bonds or other obligations payable wholly or
  partly from ad valorem taxes, assessments, impact fees, revenue,
  grants, or other money of the district, or any combination of those
  sources of money, to pay for any authorized purpose of the district.
         (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.
  The district must obtain the approval of the governing body of the
  City of Kennedale for:
               (1)  the issuance of bonds for an improvement project;
               (2)  the plans and specifications of an improvement
  project financed by the bonds; and
               (3)  the plans and specifications of a district
  improvement project related to the use of land owned by the City of
  Kennedale, an easement granted by the City of Kennedale, or a
  right-of-way of a street, road, or highway.
  [Sections 3866.159-3866.200 reserved for expansion]
         Sec. 3866.201.  DISSOLUTION. (a)  The district may be
  dissolved by:
               (1)  the governing body of the City of Kennedale on a
  vote of not less than two-thirds of its membership and adoption of
  an ordinance dissolving the district; or
               (2)  majority vote of the board of directors.
         (b)  Section 375.264, Local Government Code, does not apply
  to the district.
         (c)  If the district has debt when it is dissolved, the
  district shall remain in existence solely for the purpose of
  discharging its debts.  The dissolution is effective when all debts
  have been discharged.
         SECTION 2.  The legislature finds that:
               (1)  proper and 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 by
  the constitution and laws of this state, including the governor,
  who has submitted the notice and Act to the Texas Commission on
  Environmental Quality;
               (2)  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;
               (3)  the general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with; and
               (4)  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 3.  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, 2009.