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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 Wright Farm Municipal Management |
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District of Johnson County; providing authority to issue bonds and |
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impose assessments, fees, and taxes. |
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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 3974 to read as follows: |
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CHAPTER 3974. WRIGHT FARM MUNICIPAL MANAGEMENT DISTRICT OF JOHNSON |
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COUNTY |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 3974.0101. 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 Cleburne, Texas. |
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(3) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(4) "Director" means a board member. |
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(5) "District" means the Wright Farm Municipal |
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Management District of Johnson County. |
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Sec. 3974.0102. CREATION AND NATURE OF DISTRICT. The |
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district is a special district created under Sections 52 and 52-a, |
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Article III, and Section 59, Article XVI, Texas Constitution. |
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Sec. 3974.0103. 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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(c) This chapter and the creation of the district may not be |
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interpreted to relieve the city from providing the level of |
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services provided to the area in the district as of the effective |
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date of the Act enacting this chapter. The district is created to |
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supplement and not to supplant the city services provided in the |
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district. |
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Sec. 3974.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. |
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(a) 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; |
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(3) develop or expand transportation and commerce; and |
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(4) provide quality residential housing. |
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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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(g) The district will not act as the agent or |
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instrumentality of any private interest even though the district |
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will benefit many private interests as well as the public. |
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Sec. 3974.0105. DISTRICT TERRITORY. (a) The district is |
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composed of the territory described by Section 2 of the Act enacting |
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this chapter, as that territory may have been modified under other |
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law. |
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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 3974.0601 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, or |
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collect other revenue; or |
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(5) legality or operation. |
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Sec. 3974.0106. APPLICABILITY OF MUNICIPAL MANAGEMENT |
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DISTRICTS LAW. Except as otherwise provided by this chapter, |
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Chapter 375, Local Government Code, applies to the district. |
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Sec. 3974.0107. CONSTRUCTION OF CHAPTER. This chapter |
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shall be liberally construed in conformity with the findings and |
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purposes stated in this chapter. |
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Sec. 3974.0108. CONFLICTS OF LAW. This chapter prevails |
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over any provision of Chapter 375, Local Government Code, that is in |
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conflict or inconsistent with this chapter. |
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Sec. 3974.0109. CONSENT OF MUNICIPALITY AND DEVELOPMENT |
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AGREEMENT REQUIRED. (a) The board may not hold an election to |
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authorize the issuance of bonds until: |
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(1) the governing body of the city by ordinance or |
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resolution consents to the creation of the district and to the |
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inclusion of land in the district; and |
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(2) the district, the city, and the owner or owners of |
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a majority of the assessed value of real property in the district |
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negotiate and execute a mutually approved and accepted development |
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and operating agreement, including any limitations imposed by the |
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city. |
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(b) The city's consent under Subsection (a) must be granted |
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in the manner provided by Section 54.016, Water Code, for including |
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land within the corporate limits or extraterritorial jurisdiction |
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of a city. |
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Sec. 3974.0110. CONCURRENCE ON ADDITIONAL POWERS. If the |
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territory of the district is located in the corporate boundaries or |
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the extraterritorial jurisdiction of a municipality, the district |
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may not exercise a power granted to the district after the date the |
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district was created unless the governing body of the municipality |
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by resolution consents to the district's exercise of the power. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 3974.0201. GOVERNING BODY; TERMS. The district is |
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governed by a board of five directors who serve staggered terms of |
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four years, with two or three directors' terms expiring June 1 of |
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each even-numbered year. Five directors are appointed by the |
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commission as provided by Section 3974.0202. |
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Sec. 3974.0202. APPOINTMENT BY COMMISSION. (a) Before the |
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term of a director expires, the board shall recommend to the |
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commission the appropriate number of persons to serve as successor |
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directors and may recommend additional persons to serve as |
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successor directors. The commission shall appoint as directors the |
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appropriate number of persons from the persons recommended by the |
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board. |
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(b) A person recommended by the board under Subsection (a) |
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must be: |
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(1) at least 18 years of age; |
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(2) an owner of property in the district; |
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(3) an owner of stock, whether beneficial or |
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otherwise, of a corporate owner of property in the district; |
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(4) an owner of a beneficial interest in a trust that |
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owns property in the district; or |
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(5) an agent, employee, or tenant of a person |
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described by Subdivision (2), (3), or (4). |
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Sec. 3974.0203. VACANCY. If a vacancy occurs on the board, |
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the remaining directors shall appoint a director for the remainder |
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of the unexpired term. |
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Sec. 3974.0204. DIRECTOR'S OATH OR AFFIRMATION. (a) A |
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director shall file the director's oath or affirmation of office |
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with the district, and the district shall retain the oath or |
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affirmation in the district records. |
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(b) A director shall file a copy of the director's oath or |
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affirmation with the secretary of the city. |
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Sec. 3974.0205. OFFICERS. The board shall elect from among |
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the directors a chair, a vice chair, and a secretary. The offices |
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of chair and secretary may not be held by the same person. |
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Sec. 3974.0206. COMPENSATION; EXPENSES. (a) The district |
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may compensate each director in an amount not to exceed $150 for |
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each board meeting. The total amount of compensation a director may |
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receive each year may not exceed $7,200. |
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(b) A director is entitled to reimbursement for necessary |
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and reasonable expenses incurred in carrying out the duties and |
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responsibilities of the board. |
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Sec. 3974.0207. LIABILITY INSURANCE. The district may |
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obtain and pay for comprehensive general liability insurance |
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coverage from a commercial insurance company or other source that |
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protects and insures a director against personal liability and from |
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all claims relating to: |
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(1) actions taken by the director in the director's |
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capacity as a member of the board; |
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(2) actions and activities taken by the district; or |
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(3) the actions of others acting on behalf of the |
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district. |
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Sec. 3974.0208. NO EXECUTIVE COMMITTEE. The board may not |
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create an executive committee to exercise the powers of the board. |
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Sec. 3974.0209. BOARD MEETINGS. The board shall hold |
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meetings at a place that is accessible to the public and located in |
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the district or in the city. |
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Sec. 3974.0210. INITIAL DIRECTORS. (a) On or after |
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September 1, 2019, the owner or owners of a majority of the assessed |
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value of the real property in the district according to the most |
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recent certified tax appraisal rolls for the county may submit a |
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petition to the commission requesting that the commission appoint |
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as initial directors the five persons named in the petition. The |
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commission shall appoint as initial directors the five persons |
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named in the petition. |
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(b) The initial directors shall determine by lot which three |
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positions expire June 1, 2021, and which two positions expire June |
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1, 2023. |
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(c) This section expires September 1, 2023. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 3974.0301. GENERAL POWERS AND DUTIES. The district |
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has the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 3974.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) |
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Subject to Subsection (b), the district may provide, design, |
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construct, acquire, improve, relocate, operate, maintain, or |
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finance an improvement project or service using money available to |
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the district, or contract with a governmental or private entity to |
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provide, design, construct, acquire, improve, relocate, operate, |
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maintain, or finance an improvement project or service authorized |
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under this chapter or Chapter 375, Local Government Code. |
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(b) The district may not construct or finance an improvement |
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project, other than a water, sewer, or drainage facility or road, |
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unless the governing body of the city by ordinance or resolution |
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consents to the construction or financing. |
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Sec. 3974.0303. LOCATION OF IMPROVEMENT PROJECT. A |
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district improvement project may be located inside or outside of |
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the district. |
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Sec. 3974.0304. ADDING TERRITORY. The district may add |
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territory only if the governing body of the city by ordinance or |
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resolution consents to the addition. |
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Sec. 3974.0305. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS |
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Sec. 3974.0401. DIVISION OF DISTRICT; PREREQUISITES. The |
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district, including territory added to the district under Section |
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3974.0306, 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 3974.0306 may be included in a |
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new district. |
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Sec. 3974.0402. 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. 3974.0403. 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: |
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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 five initial directors for each new |
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district. |
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Sec. 3974.0404. CONTRACT AUTHORITY OF NEW DISTRICTS. The |
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new districts may contract with each other for any matter the boards |
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of the new districts consider appropriate, including the joint |
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construction or financing of a utility improvement. |
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Sec. 3974.0405. POWERS SUBJECT TO DEVELOPMENT AND OPERATING |
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AGREEMENT. In addition to the other limitations provided by this |
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chapter, the district's authority to exercise its powers is subject |
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to the terms of the development and operating agreement required |
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under Section 3974.0109, including the district's authority to: |
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(1) acquire, construct, or finance an improvement |
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project or service under Section 3974.0502; and |
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(2) issue bonds, notes, certificates of |
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participation, or other obligations under Section 3974.0601. |
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SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS |
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Sec. 3974.0501. 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. 3974.0502. MONEY USED FOR IMPROVEMENTS OR SERVICES. |
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The district may acquire, construct, or finance an improvement |
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project or service authorized by this chapter or Chapter 375, Local |
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Government Code, using any money available to the district. |
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Sec. 3974.0503. METHOD OF NOTICE FOR HEARING. The district |
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may mail the notice required by Section 375.115(c), Local |
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Government Code, by certified or first class United States mail. |
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The board shall determine the method of notice. |
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Sec. 3974.0504. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) |
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The board by resolution may impose and collect an assessment for any |
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purpose authorized by this chapter in all or any part of the |
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district. |
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(b) An assessment, a reassessment, or an assessment |
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resulting from an addition to or correction of the assessment roll |
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by the district, penalties and interest on an assessment or |
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reassessment, an expense of collection, and reasonable attorney's |
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fees incurred by the district are: |
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(1) a first and prior lien against the property |
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assessed; |
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(2) superior to any other lien or claim other than a |
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lien or claim for county, school district, or municipal ad valorem |
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taxes; and |
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(3) the personal liability of and a charge against the |
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owners of the property even if the owners are not named in the |
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assessment proceedings. |
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(c) The lien is effective from the date of the board's |
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resolution imposing the assessment until the date the assessment is |
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paid. The board may enforce the lien in the same manner that the |
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board may enforce an ad valorem tax lien against real property. |
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(d) The board may make a correction to or deletion from the |
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assessment roll that does not increase the amount of assessment of |
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any parcel of land without providing notice and holding a hearing in |
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the manner required for additional assessments. |
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(e) The district may not impose an assessment on a |
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municipality, county, or other political subdivision. |
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Sec. 3974.0505. NOTICE OF ASSESSMENTS. Annually, the board |
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shall file with the secretary of the city written notice that |
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specifies the assessments the district will impose in the |
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district's next fiscal year in sufficient clarity to describe the |
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assessments for the operation and maintenance of the district and |
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the assessments for the payment of debt service of obligations |
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issued or incurred by the district. |
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SUBCHAPTER F. TAXES AND BONDS |
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Sec. 3974.0601. BONDS AND OTHER OBLIGATIONS. (a) The |
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district may issue, by public or private sale, bonds, notes, or |
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other obligations payable wholly or partly from ad valorem taxes or |
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assessments in the manner provided by Subchapter A, Chapter 372, or |
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Subchapter J, Chapter 375, Local Government Code. Sections |
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375.207(a) and (b), Local Government Code, do not apply to the |
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district. |
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(b) In exercising the district's borrowing power, the |
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district may issue a bond or other obligation in the form of a bond, |
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note, certificate of participation or other instrument evidencing a |
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proportionate interest in payments to be made by the district, or |
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other type of obligation. |
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(c) In addition to the sources of money described by |
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Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local |
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Government Code, district bonds may be secured and made payable |
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wholly or partly by a pledge of any part of the money the district |
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receives from improvement revenue or from any other source. |
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SUBCHAPTER J. SPECIAL BOND PROVISIONS |
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Sec. 3974.1001. APPLICABILITY. This subchapter applies |
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only to bonds payable wholly or partly from revenue derived from |
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assessments on real property in the district. |
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Sec. 3974.1002. CONFLICT OF LAWS. In the event of a |
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conflict between this subchapter and any other law, this subchapter |
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prevails. |
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Sec. 3974.1003. WRITTEN AGREEMENT REGARDING SPECIAL |
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APPRAISALS. Before the district may issue bonds, the district and |
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any person to whom the board intends that proceeds of the bonds be |
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distributed, including the developer, another owner of land in the |
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district, and any entity acting as a lender to the developer or |
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other landowner for the purpose of a project relating to the |
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district, must enter into a written agreement that: |
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(1) waives for the term of the agreement the right to a |
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special appraisal with respect to taxation by the district under |
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Subchapters B, C, D, E, F, and H, Chapter 23, Tax Code; and |
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(2) remains in effect for 30 years and is binding on |
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the parties, on entities related to or affiliated with the parties, |
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and on their successors and assignees. |
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Sec. 3974.1004. REQUIREMENTS FOR ADVERTISING BOND ISSUE. A |
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district may not advertise for an issuance of bonds until the |
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completion of at least 25 percent of the projected value of the |
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improvements, including houses and other buildings, that are liable |
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for district assessments and necessary to support the district |
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bonds. |
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Sec. 3974.1005. REQUIREMENTS FOR BOND ISSUE. The district |
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may not issue bonds until: |
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(1) the district submits to the commission: |
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(A) an engineer's report describing the project |
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for which the bonds will provide funding, including data, profiles, |
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maps, plans, and specifications related to the project; and |
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(B) a cash flow analysis to determine the |
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projected rate of assessment, which includes the following |
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assumptions: |
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(i) each ending balance for debt service in |
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the analysis is not less than 25 percent of the following year's |
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debt service requirement; |
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(ii) interest income is only shown on the |
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ending balance for debt service for the first two years; and |
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(iii) the projected rate of assessment is |
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level or decreasing for the life of the bonds issued by the |
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district; |
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(2) the completion of at least 75 percent of the |
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projected value of the improvements, including houses and other |
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buildings, that are liable for district assessments and necessary |
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to support the district bonds; and |
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(3) the district has obtained an independent market |
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study from a firm recognized in the area of real estate market |
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analysis supporting the development projects for the real property |
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that is liable for district assessments and necessary to support |
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the district bonds. |
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Sec. 3974.1006. REQUIREMENTS FOR COLLECTION OF REVENUE TO |
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PAY BONDS. The district may not collect an assessment to be used |
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for the payment of bonds until: |
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(1) the completion of at least 95 percent of the |
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underground water, wastewater, and drainage facilities financed |
|
from bond proceeds that are necessary to serve the projected |
|
build-out, as certified by the district's engineer; |
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(2) the district or other appropriate party has |
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secured the groundwater, surface water, and water discharge permits |
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that are necessary to secure capacity to support the projected |
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build-out; |
|
(3) the completion of at least 95 percent of lift |
|
station, water plant, and sewage treatment plant capacity |
|
sufficient to serve the connections constructed in the project for |
|
a period of not less than 18 months, as certified by the district's |
|
engineer; and |
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(4) the completion of at least 95 percent of the |
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streets and roads that are necessary to provide access to the areas |
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served by utilities and financed by the proceeds of bonds issued by |
|
the district, as certified by the district's engineer and |
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constructed in accordance with municipal or county standards. |
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SECTION 2. The Wright Farm Municipal Management District of |
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Johnson County initially includes all the territory contained in |
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the following area: |
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366.96 acres of land, being composed of the following 250.96 acre |
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and 116 acre tracts: |
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Tract 1: |
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BEING 250.960 acres out of a called 490.289 acre tract of land |
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located in the SAMUEL COOPER SURVEY, ABSTRACT NUMBER 159, Johnson |
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County, Texas out of that certain tract of land conveyed to Mayfield |
|
Family Real Estate, LP, according to the deed recorded in |
|
Instrument Number 2010-10957, Deed Records of Johnson County, Texas |
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and being more particularly described as follows: |
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BEGINNING at a 1/2" capped iron rod stamped "RPLS 5614" found for |
|
corner, being the northeast corner of said Mayfield tract and also |
|
being in the apparent centerline intersection of County Road 904 |
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and County Road 1017; |
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THENCE, South 01 degrees 04 minutes 35 seconds East, along the |
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apparent centerline of said County Road 1017, 3135.29 feet to a 1/2" |
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iron rod found for corner; |
|
THENCE, South 89 degrees 45 minutes 13 seconds West, 2186.86 feet to |
|
a 3/8" iron rod found for corner; |
|
THENCE, South 89 degrees 51 minutes 18 seconds West, 1306.03 feet to |
|
a 3/8" iron rod found for corner; |
|
THENCE, North 01 degrees 04 minutes 35 seconds West, 3123.44 feet to |
|
a point in the north line of said Mayfield tract and the apparent |
|
centerline of said County Road 904 for corner; |
|
THENCE, North 89 degrees 35 minutes 50 seconds East, along the |
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apparent centerline of said County Road 904, 3492.73 feet to the |
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POINT OF BEGINNING. |
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The tract of land herein described contains 250.960 acres of land. |
|
Tract 2: |
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A part of the Dyer-Nuner Survey, in Johnson County, Texas, |
|
BEGINNING at a stake in the east line of the Mrs. M. H. Hadley tract |
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of land out of the said Dyer-Nuner Survey as the same is now located |
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and commonly known as the Hadley farm, the same being the S.E. |
|
corner of a 117 acre tract of land, conveyed to O. B. Hadley by H. O. |
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Hadley |
|
THENCE in a southerly direction 841 varas to a stake in the north |
|
line of the Joshua and Godley public road for the southeast corner |
|
of this tract of land; |
|
THENCE in a westerly direction with the north line of said Joshua |
|
and Godley Public Road 640 varas to a stake for corner, the same |
|
being the S.E. corner of a 40 acre tract heretofore deeded to W. B. |
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Hadley, now deceased; |
|
THENCE in a northerly direction with the east line of said W. B. |
|
Hadley 40 acre tract, 550 varas to its northeast corner; |
|
THENCE in a westerly direction with the north line of the said W. B. |
|
Hadley 40 acre tract, 410 varas to a stake in the west line of the |
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said M. J. Hadley tract of land; |
|
THENCE in a northerly direction with said west line of said M. J. |
|
Hadley tract 201 varas to a stake for corner, the same being the S. |
|
W. corner of the 117 acre tract conveyed to H. O. Hadley; |
|
THENCE in an easterly direction with the south line of said H. O. |
|
Hadley 117 acre tract, the same being the north line of this tract |
|
here described 1050 varas to the place of beginning, containing 117 |
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acres 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. |
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(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. |
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(d) All requirements of the constitution and laws of this |
|
state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act have been |
|
fulfilled and accomplished. |
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SECTION 4. This Act takes effect September 1, 2019. |