BILL ANALYSIS

Senate Research Center	H.B. 3436
86R19311 JCG-F	By: Sanford (Fallon)
	Intergovernmental Relations
	5/12/2019
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Celina Municipal Management District No. 3 (district) will encompass approximately 386.22 acres of land currently located within the extraterritorial jurisdiction of the City of Celina (city) in Denton County. H.B. 3436 is a standard template bill and provides for the district to have the powers to finance water, sewer, drainage, and road facilities (facilities), which need to be secured because the land to be located within the district will be developed for residential purposes. The district will function under Local Government Code provisions applicable to all municipal management districts and under constitutional provisions relating to such districts. It is anticipated that the land in the district will be annexed into the corporate limits of the city prior to the development, thus H.B. 3436 provides for the district to be annexed into the city without being dissolved. The district will have the authority to issue tax-exempt bonds to purchase, acquire, or construct the facilities. It is also necessary to empower the district with authority to divide and to impose a tax. H.B. 3436 provides for the creation, administration, powers, duties, operation, and financing of the district.

H.B. 3436 amends current law relating to the creation of the Celina Municipal Management District No. 3, and provides authority to issue bonds and impose assessments, fees, and taxes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle C, Title 4, Special District Local Laws Code, by adding Chapter 3965, as follows:

CHAPTER 3965. CELINA MUNICIPAL MANAGEMENT DISTRICT NO. 3

Sets forth standard language for the creation of the Celina Municipal Management District No. 3 (district) in Celina, Texas. Sets forth standards, requirements, procedures, and criteria for:

Creation, approval, purpose, and territory of the district and provisions relating to annexation (Sections 3965.0101�3965.0110);

Size, composition, appointment, compensation, and terms of the board of directors of the district, including provisions for initial directors (Sections 3965.0201�3965.0211);

Powers and duties of the district (Sections 3965.0301�3965.0307);

Division of the district into multiple districts (Sections 3965.0401�3965.0404);

General financial provisions and assessments (Sections 3965.0501�3965.0505);

Authority to issue taxes, bonds, and other obligations for the district (Section 3965.0601);

Dissolution of the district (Sections 3965.0701�3965.0703); and

Special bond provisions (Sections 3965.0801�3965.0806).

Prohibits the district from exercising the power of eminent domain.

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and the 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. Effective date: September 1, 2019.