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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the Joshua Farms Municipal Management |
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District No. 1; granting a limited power of eminent domain; |
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providing authority to issue bonds; providing authority to impose |
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an ad valorem tax, assessments, or fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 4, Special District Local Laws |
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Code, is amended by adding Chapter 3926 to read as follows: |
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CHAPTER 3926. JOSHUA FARMS MUNICIPAL MANAGEMENT DISTRICT NO. 1 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 3926.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "City" means the City of Burleson, Texas. |
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(3) "County" means Johnson County, Texas. |
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(4) "Director" means a board member. |
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(5) "District" means the Joshua Farms Municipal |
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Management District No. 1. |
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Sec. 3926.002. CREATION AND NATURE OF DISTRICT. The Joshua |
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Farms Municipal Management District No. 1 is a special district |
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created under Sections 52 and 52-a, Article III, and Section 59, |
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Article XVI, Texas Constitution. |
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Sec. 3926.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The |
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creation of the district is essential to accomplish the purposes of |
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Sections 52 and 52-a, Article III, and Section 59, Article XVI, |
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Texas Constitution, and other public purposes stated in this |
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chapter. By creating the district and in authorizing the city and |
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other political subdivisions to contract with the district, the |
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legislature has established a program to accomplish the public |
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purposes set out in Section 52-a, Article III, Texas Constitution. |
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(b) The creation of the district is necessary to promote, |
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develop, encourage, and maintain employment, commerce, |
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transportation, housing, tourism, recreation, the arts, |
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entertainment, economic development, safety, and the public |
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welfare in the district. |
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Sec. 3926.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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The district is created to serve a public use and benefit. |
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(b) All land and other property included in the district |
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will benefit from the improvements and services to be provided by |
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the district under powers conferred by Sections 52 and 52-a, |
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Article III, and Section 59, Article XVI, Texas Constitution, and |
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other powers granted under this chapter. |
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(c) The district is created to accomplish the purposes of a |
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municipal management district as provided by general law and |
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Sections 52 and 52-a, Article III, and Section 59, Article XVI, |
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Texas Constitution. |
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(d) The creation of the district is in the public interest |
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and is essential to: |
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(1) further the public purposes of developing and |
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diversifying the economy of the state; |
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(2) eliminate unemployment and underemployment; and |
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(3) develop or expand transportation and commerce. |
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(e) The district will: |
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(1) promote the health, safety, and general welfare of |
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residents, employers, potential employees, employees, visitors, |
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and consumers in the district, and of the public; |
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(2) provide needed funding for the district to |
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preserve, maintain, and enhance the economic health and vitality of |
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the district territory as a community and business center; and |
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(3) promote the health, safety, welfare, and enjoyment |
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of the public by providing pedestrian ways and by landscaping and |
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developing certain areas in the district, which are necessary for |
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the restoration, preservation, and enhancement of scenic beauty. |
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(f) Pedestrian ways along or across a street, whether at |
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grade or above or below the surface, and street lighting, street |
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landscaping, parking, and street art objects are parts of and |
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necessary components of a street and are considered to be a street |
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or road improvement. |
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Sec. 3926.005. INITIAL DISTRICT TERRITORY. (a) The |
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district is initially composed of the territory described by |
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Section 2 of the Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to contract; |
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(3) authority to borrow money or issue bonds or other |
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obligations described by Section 3926.253 or to pay the principal |
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and interest of the bonds or other obligations; |
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(4) right to impose or collect an assessment, tax, or |
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any other revenue; or |
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(5) legality or operation. |
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Sec. 3926.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. |
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(a) All or any part of the area of the district is eligible to be |
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included in: |
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(1) a tax increment reinvestment zone created under |
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Chapter 311, Tax Code; |
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(2) a tax abatement reinvestment zone created under |
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Chapter 312, Tax Code; or |
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(3) an enterprise zone created under Chapter 2303, |
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Government Code. |
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(b) If the city creates a tax increment reinvestment zone |
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described by Subsection (a), the city and the board of directors of |
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the zone, by contract with the district, may grant money deposited |
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in the tax increment fund to the district to be used by the district |
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for: |
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(1) the purposes permitted for money granted to a |
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corporation under Section 380.002(b), Local Government Code; and |
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(2) any other district purpose, including the right to |
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pledge the money as security for any bonds or other obligations |
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issued by the district under Section 3926.253. |
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(c) If the city creates a tax increment reinvestment zone |
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described by Subsection (a), the city may determine the percentage |
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of the property in the zone that may be used for residential |
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purposes and is not subject to the limitations provided by Section |
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311.006, Tax Code. |
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Sec. 3926.007. CONFIRMATION AND DIRECTORS' ELECTION |
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REQUIRED. The initial directors shall hold an election to confirm |
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the creation of the district and to elect five permanent directors |
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as provided by Section 49.102, Water Code. |
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Sec. 3926.008. APPLICABILITY OF MUNICIPAL MANAGEMENT |
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DISTRICT LAW. Except as provided by this chapter, Chapter 375, |
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Local Government Code, applies to the district. |
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Sec. 3926.009. CONSTRUCTION OF CHAPTER. This chapter shall |
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be liberally construed in conformity with the findings and purposes |
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stated in this chapter. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 3926.051. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of five elected directors. |
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(b) Except as provided by Section 3926.053, directors serve |
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staggered four-year terms, with two or three directors' terms |
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expiring June 1 of each odd-numbered year. |
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Sec. 3926.052. BOARD MEETINGS. The board shall hold |
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meetings at a place accessible to the public. |
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Sec. 3926.053. INITIAL DIRECTORS. (a) The initial board |
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consists of: |
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Pos. No. Name of Director |
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1 Ross Gatlin |
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2 Trent Horton |
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3 Pelham Smith |
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4 Brian Hegi |
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5 Nat Parker |
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(b) Initial directors serve until the earlier of: |
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(1) the date permanent directors are elected under |
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Section 3926.007; or |
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(2) the fourth anniversary of the effective date of |
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the Act enacting this chapter. |
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(c) If permanent directors have not been elected under |
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Section 3926.007 and the terms of the initial directors have |
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expired, successor initial directors shall be appointed or |
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reappointed as provided by Subsection (d) to serve terms that |
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expire on the earlier of: |
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(1) the date permanent directors are elected under |
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Section 3926.007; or |
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(2) the fourth anniversary of the date of the |
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appointment or reappointment. |
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(d) If Subsection (c) applies, the owner or owners of a |
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majority of the assessed value of the real property in the district |
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according to the most recent certified tax appraisal rolls for the |
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county may submit a petition to the Texas Commission on |
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Environmental Quality requesting that the commission appoint as |
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successor initial directors the five persons named in the petition. |
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The commission shall appoint as successor initial directors the |
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five persons named in the petition. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 3926.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 3926.102. IMPROVEMENT PROJECTS. The district may |
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provide, or it may enter into contracts with a governmental or |
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private entity to provide, the improvement projects described by |
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Subchapter C-1 or activities in support of or incidental to those |
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projects. |
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Sec. 3926.103. WATER DISTRICT POWERS. The district has the |
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powers provided by the general laws relating to conservation and |
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reclamation districts created under Section 59, Article XVI, Texas |
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Constitution, including Chapters 49 and 54, Water Code. |
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Sec. 3926.104. ROAD DISTRICT POWERS. The district has the |
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powers provided by the general laws relating to road districts and |
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road utility districts created under Section 52(b), Article III, |
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Texas Constitution, including Chapters 257 and 441, Transportation |
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Code. |
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Sec. 3926.105. PUBLIC IMPROVEMENT DISTRICT POWERS. The |
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district has the powers provided by Chapter 372, Local Government |
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Code, to a municipality or county. |
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Sec. 3926.106. CONTRACT POWERS. The district may contract |
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with a governmental or private entity, on terms determined by the |
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board, to carry out a power or duty authorized by this chapter or to |
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accomplish a purpose for which the district is created. |
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Sec. 3926.107. ECONOMIC DEVELOPMENT. (a) The district may |
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engage in activities that accomplish the economic development |
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purposes of the district. |
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(b) The district may establish and provide for the |
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administration of one or more programs to promote state or local |
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economic development and to stimulate business and commercial |
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activity in the district, including programs to: |
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(1) make loans and grants of public money; and |
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(2) provide district personnel and services. |
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(c) The district may create economic development programs |
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and exercise the economic development powers that: |
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(1) Chapter 380, Local Government Code, provides to a |
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municipality; and |
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(2) Subchapter A, Chapter 1509, Government Code, |
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provides to a municipality. |
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Sec. 3926.108. ADDING OR REMOVING TERRITORY. As provided |
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by Subchapter J, Chapter 49, Water Code, the board may add territory |
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inside the boundaries of the city or the extraterritorial |
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jurisdiction of the city to the district or remove territory inside |
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the boundaries of the city or the extraterritorial jurisdiction of |
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the city from the district, except that: |
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(1) the addition or removal of the territory must be |
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approved by the city; |
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(2) the addition or removal may not occur without |
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petition by the owners of the territory being added or removed; and |
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(3) territory may not be removed from the district if |
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bonds or other obligations of the district payable wholly or partly |
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from taxes or assessments assessed on the territory are |
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outstanding. |
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Sec. 3926.109. NO TOLL ROADS. The district may not |
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construct, acquire, maintain, or operate a toll road. |
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Sec. 3926.110. EMINENT DOMAIN. (a) Section 375.094, Local |
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Government Code, does not apply to the district. |
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(b) The district may acquire by condemnation any land, |
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easements, or other property inside or outside the district's |
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boundaries or the boundaries of the certificated service area of a |
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water supply corporation necessary for water, sanitary sewer, storm |
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drainage, flood drainage, or control or roadway purposes, or for |
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any other of the district's projects or purposes, and may elect to |
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condemn either the fee simple title or a lesser property interest. |
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(c) The right of eminent domain shall be exercised in the |
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manner provided by Chapter 21, Property Code, except that the |
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district is not required to give bond for appeal or bond for costs |
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in any condemnation suit or other suit to which it is a party and is |
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not required to deposit more than the amount of any award in any |
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suit. |
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(d) The district may not use the power of eminent domain to |
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condemn land for the purpose of acquiring rights to underground |
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water or acquiring water or water rights. |
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SUBCHAPTER C-1. IMPROVEMENT PROJECTS AND SERVICES |
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Sec. 3926.151. IMPROVEMENT PROJECTS AND SERVICES. The |
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district may provide, design, construct, acquire, improve, |
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relocate, operate, maintain, or finance an improvement project or |
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service, including water, wastewater, drainage, and roadway |
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projects or services, using any money available to the district, or |
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contract with a governmental or private entity and reimburse that |
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entity for the provision, design, construction, acquisition, |
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improvement, relocation, operation, maintenance, or financing of |
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an improvement project, service, or cost, for the provision of |
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credit enhancement, or for any cost of operating or maintaining the |
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district or the issuance of district obligations authorized under |
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this chapter, Chapter 372 or 375, Local Government Code, or Chapter |
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49 or 54, Water Code. |
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Sec. 3926.152. BOARD DETERMINATION REQUIRED. The district |
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may not undertake an improvement project unless the board |
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determines the project is necessary to accomplish a public purpose |
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of the district. |
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Sec. 3926.153. LOCATION OF IMPROVEMENT PROJECT. An |
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improvement project may be located or provide service inside or |
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outside the district. |
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Sec. 3926.154. IMPROVEMENT PROJECT AND SERVICE IN DEFINABLE |
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AREA. The district may undertake an improvement project or service |
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that confers a special benefit on a definable area in the district |
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and levy and collect a special assessment on benefited property in |
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the district in accordance with: |
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(1) Chapter 372, Local Government Code; or |
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(2) Chapter 375, Local Government Code. |
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Sec. 3926.155. CONTRACTS. A contract to design, construct, |
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acquire, improve, relocate, operate, maintain, or finance an |
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improvement project is considered a contract for a good or service |
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under Subchapter I, Chapter 271, Local Government Code. |
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SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS |
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Sec. 3926.201. DIVISION OF DISTRICT; PREREQUISITE. The |
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district, including territory added to the district under Section |
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3926.108, may be divided into two or more new districts only if the |
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district has no outstanding bonded debt. Territory previously |
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added to the district under Section 3926.108 may be included in a |
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new district. |
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Sec. 3926.202. LAW APPLICABLE TO NEW DISTRICT. This |
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chapter applies to any new district created by division of the |
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district, and a new district has all the powers and duties of the |
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district. |
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Sec. 3926.203. DIVISION PROCEDURES. (a) The board, on its |
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own motion or on receipt of a petition signed by an owner of real |
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property in the district, may adopt an order proposing to divide the |
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district. |
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(b) If the board decides to divide the district, the board |
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shall, subject to the city's resolution or ordinance: |
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(1) set the terms of the division, including names for |
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the new districts and a plan for the payment or performance of any |
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outstanding district obligations; |
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(2) prepare a metes and bounds description for each |
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proposed district; and |
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(3) appoint initial directors for each new district. |
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Sec. 3926.204. NOTICE AND RECORDING OF ORDER. Not later |
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than the 30th day after the date of an order dividing the district, |
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the district shall: |
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(1) file the order with the Texas Commission on |
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Environmental Quality; and |
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(2) record the order in the real property records of |
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the county. |
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Sec. 3926.205. CONTRACT AUTHORITY OF NEW DISTRICTS. (a) |
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Except as provided by Subsection (b), the new districts may |
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contract with each other for any matter the boards of the new |
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districts consider appropriate, including the joint construction |
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or financing of a utility or roadway improvement and the joint |
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financing of a maintenance obligation. |
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(b) The new districts may not contract with each other for |
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water and wastewater services. This subsection does not affect the |
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right to contract described by Subsection (a). |
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SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS |
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Sec. 3926.251. DISBURSEMENTS AND TRANSFERS OF MONEY. The |
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board by resolution shall establish the number of directors' |
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signatures and the procedure required for a disbursement or |
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transfer of the district's money. |
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Sec. 3926.252. MONEY USED FOR IMPROVEMENTS OR SERVICES. |
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The district may undertake and provide an improvement project or |
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service authorized by this chapter using any money available to the |
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district. |
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Sec. 3926.253. BORROWING MONEY; OBLIGATIONS. (a) The |
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district may borrow money for a district purpose, including the |
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acquisition or construction of improvement projects authorized by |
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this chapter and the reimbursement of a person who develops or owns |
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an improvement project authorized by this chapter, by issuing |
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bonds, notes, time warrants, or other obligations, or by entering |
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into a contract or other agreement payable wholly or partly from an |
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assessment, a contract payment, a grant, revenue from a zone |
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created under Chapter 311 or 312, Tax Code, other district revenue, |
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or a combination of these sources. |
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(b) An obligation described by Subsection (a): |
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(1) may bear interest at a rate determined by the |
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board; and |
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(2) may include a term or condition as determined by |
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the board. |
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Sec. 3926.254. CERTAIN OBLIGATIONS NOT SUBJECT TO APPROVAL |
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OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. Section 375.208, |
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Local Government Code, and Section 49.181, Water Code, do not apply |
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to the district. |
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Sec. 3926.255. ELECTIONS REGARDING TAXES OR BONDS. (a) The |
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district may issue, without an election, bonds and other |
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obligations payable from any source other than ad valorem taxation. |
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(b) The district must hold an election in the manner |
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provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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before the district may impose an ad valorem tax or issue bonds |
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payable from ad valorem taxes. |
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(c) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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Sec. 3926.256. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election, the district may impose an operation and |
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maintenance tax in accordance with Section 49.107, Water Code. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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Sec. 3926.257. CONTRACT TAXES. (a) In accordance with |
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Section 49.108, Water Code, the district may impose a tax other than |
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an operation and maintenance tax and use the revenue derived from |
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the tax to make payments under a contract after the provisions of |
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the contract have been approved by a majority of the district voters |
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voting at an election held for that purpose. |
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(b) A contract approved by the district voters may contain a |
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provision stating that the contract may be modified or amended by |
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the board without further voter approval. |
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Sec. 3926.258. ASSESSMENTS. (a) Except as provided by |
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Subsection (b), the district may impose an assessment on property |
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in the district to pay for an obligation described by Section |
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3926.253 or an improvement project authorized by Section 3926.151 |
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in the manner provided for: |
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(1) a district under Subchapters A, E, and F, Chapter |
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375, Local Government Code; or |
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(2) a municipality or county under Subchapter A, |
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Chapter 372, Local Government Code. |
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(b) The district may not impose an assessment on a |
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municipality, county, or other political subdivision. |
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Sec. 3926.259. RESIDENTIAL PROPERTY NOT EXEMPT. Section |
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375.161, Local Government Code, does not apply to the district. |
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Sec. 3926.260. NO IMPACT FEES. The district may not impose |
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an impact fee. |
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SUBCHAPTER F. DISSOLUTION |
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Sec. 3926.301. DISSOLUTION BY CITY. (a) The city may |
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dissolve the district by ordinance. |
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(b) The city may not dissolve the district until: |
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(1) the district's outstanding debt or contractual |
|
obligations have been repaid or discharged; or |
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(2) the city agrees to succeed to the rights and |
|
obligations of the district, including an obligation described by |
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Section 3926.303. |
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Sec. 3926.302. COLLECTION OF TAXES, ASSESSMENTS, AND OTHER |
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REVENUE. (a) If the dissolved district has bonds or other |
|
obligations outstanding secured by and payable from taxes, |
|
assessments, or other revenue, the city succeeds to the rights and |
|
obligations of the district regarding enforcement and collection of |
|
the taxes, assessments, or other revenue. |
|
(b) The city shall have and exercise all district powers to |
|
enforce and collect the taxes, assessments, or other revenue to |
|
pay: |
|
(1) the bonds or other obligations when due and |
|
payable according to their terms; or |
|
(2) ad valorem tax bonds, special revenue or |
|
assessment bonds, or other obligations issued by the city to refund |
|
the outstanding bonds or obligations of the district. |
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Sec. 3926.303. ASSUMPTION OF ASSETS AND LIABILITIES. (a) |
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After the city dissolves the district, the city assumes the |
|
obligations of the district, including any contractual obligations |
|
or bonds or other debt payable from taxes, 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 Joshua Farms Municipal Management District |
|
No. 1 initially includes all the territory contained in the |
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following area: |
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BEING a tract of land situated in the B.B.B. & C.R.R. Co. Survey, |
|
Abstract Number 103, the A.J. Tucker Survey, Abstract Number 833, |
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the R.H. Barrow Survey, Abstract Number 1149 and the McKinney & |
|
Williams Survey, Abstract Number 631, Johnson County, Texas and |
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being a portion of that tract of land described by deed Joshua Land |
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Farm LLC., recorded in Instrument Number 22522, County Records, |
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Johnson County, Texas: |
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BEGINNING at the most southerly southeast corner of said Joshua |
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Land Farm LLC. tract; |
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THENCE S 87°43'23"W, 1610.10 feet with said south line; |
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THENCE N 89°16'22"W, 1067.28 feet with said south line; |
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THENCE N 00°16'47"E, 3316.57 feet departing said south line, with |
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the west line of said Joshua Land Farm tract to the south line of |
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Cherry Ridge Phase One, an addition to Johnson County, as recorded |
|
in Cabinet C, Volume 8, said County Records; |
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THENCE N 87°25'01"E, 1757.56 feet with said south line; |
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THENCE N 01°24'23"W, 1023.82 feet with the east line of said Cherry |
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Ridge Phase One; |
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THENCE S 33°45'00"E, 3383.50 feet departing said east line; |
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THENCE S 56°14'59"E, 442.41 feet; |
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THENCE N 68°17'01"E, 1321.19 feet to the east line of said Joshua |
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Land Farm tract; |
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THENCE S 00°03'03"W, 669.58 feet with the east line of said Joshua |
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Land Farm tract; |
|
THENCE N 89°55'29"W, 2552.86 feet continuing with said east line; |
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THENCE S 00°23'03"E, 1132.41 feet to the Point of Beginning and |
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containing 10,965,460 square feet or 252 acres of land more or less. |
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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. (a) Section 3926.110, Special District Local |
|
Laws Code, as added by Section 1 of this Act, takes effect only if |
|
this Act receives a two-thirds vote of all the members elected to |
|
each house. |
|
(b) If this Act does not receive a two-thirds vote of all the |
|
members elected to each house, Subchapter C, Chapter 3926, Special |
|
District Local Laws Code, as added by Section 1 of this Act, is |
|
amended by adding Section 3926.110 to read as follows: |
|
Sec. 3926.110. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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(c) This section is not intended to be an expression of a |
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legislative interpretation of the requirements of Section 17(c), |
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Article I, Texas Constitution. |
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SECTION 5. This Act takes effect September 1, 2015. |