87R10043 MCF-F
 
  By: Ellzey H.B. No. 4584
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Sterrett Road Municipal Management
  District; providing authority to issue bonds; providing authority
  to impose assessments, fees, and taxes; granting the power of
  eminent domain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3959 to read as follows:
  CHAPTER 3959. STERRETT ROAD MUNICIPAL MANAGEMENT DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 3959.0001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Waxahachie.
               (3)  "Director" means a board member.
               (4)  "District" means the Sterrett Road Municipal
  Management District.
         Sec. 3959.0002.  NATURE OF DISTRICT. The Sterrett Road
  Municipal Management District is a special district created under
  Section 59, Article XVI, Texas Constitution.
         Sec. 3959.0003.  PURPOSE; DECLARATION OF INTENT. (a) The
  creation of the district is essential to accomplish the purposes of
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution, and other public purposes stated in this
  chapter.
         (b)  By creating the district and in authorizing the city and
  other political subdivisions to contract with the district, the
  legislature has established a program to accomplish the public
  purposes set out in Section 52-a, Article III, Texas Constitution.
         (c)  The creation of the district is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, housing, tourism, recreation, the arts,
  entertainment, economic development, safety, and the public
  welfare in the district.
         (d)  This chapter and the creation of the district may not be
  interpreted to relieve the city from providing the level of
  services provided as of the effective date of the Act enacting this
  chapter to the area in the district. The district is created to
  supplement and not to supplant city services provided in the
  district.
         Sec. 3959.0004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a) All land and other property included in the district will
  benefit from the improvements and services to be provided by the
  district under powers conferred by Sections 52 and 52-a, Article
  III, and Section 59, Article XVI, Texas Constitution, and other
  powers granted under this chapter.
         (b)  The district is created to serve a public use and
  benefit.
         (c)  The creation of the district is in the public interest
  and is essential to further the public purposes of:
               (1)  developing and diversifying the economy of the
  state;
               (2)  eliminating unemployment and underemployment; and
               (3)  developing or expanding transportation and
  commerce.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the district, and of the public;
               (2)  provide needed funding for the district to
  preserve, maintain, and enhance the economic health and vitality of
  the district territory as a community and business center;
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and by landscaping and
  developing certain areas in the district, which are necessary for
  the restoration, preservation, and enhancement of scenic beauty;
  and
               (4)  provide for water, wastewater, drainage, road, and
  recreational facilities for the district.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, parking, and street art objects are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (f)  The district will not act as the agent or
  instrumentality of any private interest even though the district
  will benefit many private interests as well as the public.
         Sec. 3959.0005.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 2 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bonds for the purposes
  for which the district is created or to pay the principal of and
  interest on the bonds;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3959.0006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
  All or any part of the area of the district is eligible to be
  included in:
               (1)  a tax increment reinvestment zone created under
  Chapter 311, Tax Code; or
               (2)  a tax abatement reinvestment zone created under
  Chapter 312, Tax Code.
         Sec. 3959.0007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3959.0008.  CONSTRUCTION OF CHAPTER. This chapter
  shall be liberally construed in conformity with the findings and
  purposes stated in this chapter.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3959.0051.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five elected directors who serve staggered
  terms of four years.
         (b)  Directors are elected in the manner provided by
  Subchapter D, Chapter 49, Water Code.
         Sec. 3959.0052.  COMPENSATION; EXPENSES. (a) The district
  may compensate each director in an amount not to exceed $150 for
  each board meeting. The total amount of compensation for each
  director in one year may not exceed $7,200.
         (b)  A director is entitled to reimbursement for necessary
  and reasonable expenses incurred in carrying out the duties and
  responsibilities of the board.
         Sec. 3959.0053.  INITIAL DIRECTORS. (a) The initial board
  consists of the following directors:
 
Pos. No. Name of Director
 
1 David Muckleroy
 
2 Kenner Link
 
3 Peter Madrala
 
4 Ian Hall
 
5 Brock Babb
         (b)  Of the initial directors, the terms of directors
  appointed for positions one through three expire June 1, 2023, and
  the terms of directors appointed for positions four and five expire
  June 1, 2025.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3959.0101.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3959.0102.  IMPROVEMENT PROJECTS AND SERVICES. (a) The
  district, using any money available to the district for the
  purpose, may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service authorized under this chapter or Chapter 372 or 375, Local
  Government Code.
         (b)  The district may contract with a governmental or private
  entity to carry out an action under Subsection (a).
         (c)  The implementation of a district project or service is a
  governmental function or service for the purposes of Chapter 791,
  Government Code.
         Sec. 3959.0103.  NONPROFIT CORPORATION. (a) The board by
  resolution may authorize the creation of a nonprofit corporation to
  assist and act for the district in implementing a project or
  providing a service authorized by this chapter.
         (b)  The nonprofit corporation:
               (1)  has each power of and is considered to be a local
  government corporation created under Subchapter D, Chapter 431,
  Transportation Code; and
               (2)  may implement any project and provide any service
  authorized by this chapter.
         (c)  The board shall appoint the board of directors of the
  nonprofit corporation. The board of directors of the nonprofit
  corporation shall serve in the same manner as the board of directors
  of a local government corporation created under Subchapter D,
  Chapter 431, Transportation Code, except that a board member is not
  required to reside in the district.
         Sec. 3959.0104.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with the city to provide
  additional law enforcement services in the district for a fee.
         Sec. 3959.0105.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
  The district may join and pay dues to a charitable or nonprofit
  organization that performs a service or provides an activity
  consistent with the furtherance of a district purpose.
         Sec. 3959.0106.  ECONOMIC DEVELOPMENT PROGRAMS. (a) The
  district may engage in activities that accomplish the economic
  development purposes of the district.
         (b)  The district may establish and provide for the
  administration of one or more programs to promote state or local
  economic development and to stimulate business and commercial
  activity in the district, including programs to:
               (1)  make loans and grants of public money; and
               (2)  provide district personnel and services.
         (c)  The district may create economic development programs
  and exercise the economic development powers provided to
  municipalities by:
               (1)  Chapter 380, Local Government Code; and
               (2)  Subchapter A, Chapter 1509, Government Code.
         Sec. 3959.0107.  PARKING FACILITIES. (a) The district may
  acquire, lease as lessor or lessee, construct, develop, own,
  operate, and maintain parking facilities or a system of parking
  facilities, including lots, garages, parking terminals, or other
  structures or accommodations for parking motor vehicles off the
  streets and related appurtenances.
         (b)  The district's parking facilities serve the public
  purposes of the district and are owned, used, and held for a public
  purpose even if leased or operated by a private entity for a term of
  years.
         (c)  The district's parking facilities are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (d)  The development and operation of the district's parking
  facilities may be considered an economic development program.
         Sec. 3959.0108.  ADDING OR EXCLUDING LAND. The district may
  add or exclude land in the manner provided by Subchapter J, Chapter
  49, Water Code, or by Subchapter H, Chapter 54, Water Code.
         Sec. 3959.0109.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of district money.
         Sec. 3959.0110.  EMINENT DOMAIN. The district may exercise
  the power of eminent domain in the manner provided by Chapter 49,
  Water Code.
         Sec. 3959.0111.   DIVISION OF DISTRICT. (a) The district may
  be divided into two or more new districts only if the district:
               (1)  has no outstanding bonded debt; and
               (2)  is not imposing ad valorem taxes.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  Any new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act enacting this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  An order dividing the district must:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint initial directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between or among the new districts.
         (f)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the Texas Commission on Environmental Quality and record the
  order in the real property records of each county in which the
  district is located.
         (g)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
         (h)  Municipal consent to the creation of the district and to
  the inclusion of land in the district granted under Section
  3959.0206 acts as municipal consent to the creation of any new
  district created by the division of the district and to the
  inclusion of land in the new district.
  SUBCHAPTER D. ASSESSMENTS
         Sec. 3959.0151.  PETITION REQUIRED FOR FINANCING SERVICES
  AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
  service or improvement project with assessments under this chapter
  unless a written petition requesting that service or improvement
  has been filed with the board.
         (b)  A petition filed under Subsection (a) must be signed by
  the owners of a majority of the assessed value of real property in
  the district subject to assessment according to the most recent
  certified tax appraisal roll for the county.
         Sec. 3959.0152.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
  The board by resolution may impose and collect an assessment for any
  purpose authorized by this chapter in all or any part of the
  district.
         (b)  An assessment, a reassessment, or an assessment
  resulting from an addition to or correction of the assessment roll
  by the district, penalties and interest on an assessment or
  reassessment, an expense of collection, and reasonable attorney's
  fees incurred by the district:
               (1)  are a first and prior lien against the property
  assessed;
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and a charge against
  the owners of the property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (d)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         Sec. 3959.0153.  CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.
  Section 375.161, Local Government Code, does not apply to the
  district.
  SUBCHAPTER E. TAXES AND BONDS
         Sec. 3959.0201.  TAX ELECTION REQUIRED. (a) The district
  must hold an election in the manner provided by Chapter 49, Water
  Code, or, if applicable, Chapter 375, Local Government Code, to
  obtain voter approval before the district may impose an ad valorem
  tax.
         (b)  Section 375.243, Local Government Code, does not apply
  to the district.
         Sec. 3959.0202.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized by a majority of the district voters voting at an
  election under Section 3959.0201, the district may impose an
  operation and maintenance tax on taxable property in the district
  in the manner provided by Section 49.107, Water Code, for any
  district purpose, including to:
               (1)  maintain and operate the district;
               (2)  construct or acquire improvements; or
               (3)  provide a service.
         (b)  The board shall determine the operation and maintenance
  tax rate. The rate may not exceed the rate approved at the
  election.
         Sec. 3959.0203.  AUTHORITY TO BORROW MONEY AND TO ISSUE
  BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
  terms determined by the board.
         (b)  The district may issue, by public or private sale,
  bonds, notes, or other obligations payable wholly or partly from ad
  valorem taxes, assessments, impact fees, revenue, contract
  payments, grants, or other district money, or any combination of
  those sources of money, to pay for any authorized district purpose.
         (c)  The limitation on the outstanding principal amount of
  bonds, notes, or other obligations provided by Section 49.4645,
  Water Code, does not apply to the district.
         (d)  The district may issue, by public or private sale,
  bonds, notes, or other obligations payable wholly or partly from ad
  valorem taxes or assessments in the manner provided by Subchapter
  A, Chapter 372, Local Government Code, if the improvements financed
  by an obligation issued under this section will be conveyed to or
  operated and maintained by a municipality or other retail utility
  provider pursuant to an agreement with the district entered into
  before the issuance of the obligation.
         Sec. 3959.0204.  BONDS SECURED BY REVENUE OR CONTRACT
  PAYMENTS. The district may issue, without an election, bonds
  secured by:
               (1)  revenue other than ad valorem taxes;
               (2)  contract payments, provided that the requirements
  of Section 49.108, Water Code, have been met; or
               (3)  other contract revenues.
         Sec. 3959.0205.  BONDS SECURED BY AD VALOREM TAXES;
  ELECTIONS. (a) If authorized at an election under Section
  3959.0201, the district may issue bonds payable from ad valorem
  taxes.
         (b)  At the time the district issues bonds payable wholly or
  partly from ad valorem taxes, the board shall provide for the annual
  imposition of a continuing direct annual ad valorem tax, without
  limit as to rate or amount, for each year that all or part of the
  bonds are outstanding as required and in the manner provided by
  Sections 54.601 and 54.602, Water Code.
         (c)  All or any part of any facilities or improvements that
  may be acquired by a district by the issuance of its bonds may be
  submitted as a single proposition or as several propositions to be
  voted on at the election.
         Sec. 3959.0206.  CONSENT OF MUNICIPALITY REQUIRED. (a) The
  board may not issue bonds until each municipality in whose
  corporate limits or extraterritorial jurisdiction the district is
  located has consented by ordinance or resolution to the creation of
  the district and to the inclusion of land in the district.
         (b)  This section applies only to the district's first
  issuance of bonds payable from ad valorem taxes.
  SUBCHAPTER Z. DISSOLUTION
         Sec. 3959.0901.  DISSOLUTION. (a) The board shall dissolve
  the district on written petition filed with the board by the owners
  of:
               (1)  66 percent or more of the assessed value subject to
  assessment by the district of the property in the district based on
  the most recent certified county property tax rolls; or
               (2)  66 percent or more of the surface area of the
  district, excluding roads, streets, highways, utility
  rights-of-way, other public areas, and other property exempt from
  assessment by the district according to the most recent certified
  county property tax rolls.
         (b)  The district may not be dissolved if the district:
               (1)  has any outstanding bonded or other indebtedness
  until that bonded or other indebtedness has been repaid or defeased
  in accordance with the order or resolution authorizing the issuance
  of the bonded or other indebtedness;
               (2)  has a contractual obligation to pay money until
  that obligation has been fully paid in accordance with the
  contract; or
               (3)  owns, operates, or maintains public works,
  facilities, or improvements unless the district has contracted with
  another party for the ownership and operation or maintenance of the
  public works, facilities, or improvements.
         (c)  Section 375.262, Local Government Code, does not apply
  to the district.
         SECTION 2.  The Sterrett Road Municipal Management District
  initially includes all territory contained in the following area:
  Being a parcel of land located in Ellis County, Texas, a part of the
  a part of the Clement Goar Survey, Abstract Number 401, a part of
  the Carter H. Hurst Survey, Abstract Number 456, and being all of
  that called 124.27 acre tract of land described in deed to Futex
  Property Company No. 112, LLC as recorded in Instrument Number
  1801007, Official Public Records of Ellis County, Texas, and being
  all of that called 101.19 acre tract of land described in deed to
  James R. Pitts, Trustee as recorded in Instrument Number 1723473,
  Official Public Records of Ellis County, Texas, and also being all
  of that called 360.00 acre tract of land described in deed to Fuscom
  Property Company No. 2, LLC as recorded in Instrument Number
  1800404, Official Public Records of Ellis County, Texas, and being
  further described as follows:
  BEGINNING at a point at the southwest corner of said 124.27 acre
  tract, said point also being at the approximate centerline
  intersection of West Sterrett Road and Patrick Road;
  THENCE North 00 degrees 02 minutes 30 seconds West, 4,252.90 feet to
  a point for corner, said point being the most westerly northwest
  corner of said 360.00 acre tract, said point also being in Patrick
  Road;
  THENCE along the north line of said 360.00 acre tract as follows:
         North 88 degrees 02 minutes 21 seconds East, 2,227.21 feet to
  a point for corner;
         North 03 degrees 02 minutes 39 seconds West, 972.62 feet to a
  point for corner;
         North 89 degrees 51 minutes 38 seconds East, 459.17 feet to a
  point for corner;
         North 02 degrees 01 minutes 41 seconds West, 296.17 feet to a
  point for corner;
         North 89 degrees 01 minutes 02 seconds East, 1,306.16 feet to
  a point for corner;
         North 88 degrees 37 minutes 03 seconds East, 453.09 feet to a
  point for corner;
         South 01 degrees 18 minutes 19 seconds East, 437.73 feet to a
  point for corner;
         North 89 degrees 09 minutes 41 seconds East, 850.07 feet to a
  point for corner, said point being the northeast corner of said
  360.00 acre tract;
  THENCE along the east line of said 360.00 acre tract as follows:
         South 00 degrees 57 minutes 39 seconds East, 1,694.38 feet to
  a point for corner;
         South 01 degrees 25 minutes 02 seconds East, 1,620.58 feet to
  a point for corner, said point being the southeast corner of said
  360.00 acre tract, said point also being the northeast corner of
  said 101.19 acre tract;
  THENCE South 00 degrees 37 minutes 32 seconds East, 1,625.00 feet to
  the southeast corner of said 101.19 acre tract, said point also
  being in West Sterrett Road;
  THENCE North 89 degrees 19 minutes 15 seconds West, 2,693.70 feet to
  a point for corner, said point being the southwest corner of said
  101.19 acre tract, said point also being in the east line of said
  124.27 acre tract, said point also being in West Sterrett Road;
  THENCE South 01 degrees 22 minutes 01 seconds East, 294.05 feet to a
  point for corner, said point being the southeast corner of said
  124.27 acre tract, said point also being in West Sterrett Road;
  THENCE South 89 degrees 54 minutes 12 seconds West, 2,638.73 feet
  along the south line of said 124.27 acre tract to the POINT OF
  BEGINNING and containing 25,506,220 square feet or 585.542 acres of
  land.
  Bearings are based on the west line of that called 124.27 acre tract
  of land described in deed to Futex Property Company No. 112, LLC as
  recorded in Instrument Number 1801007, Official Public Records of
  Ellis County, Texas.
         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 3959.0110, 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 3959, Special
  District Local Laws Code, as added by Section 1 of this Act, is
  amended by adding Section 3959.0110 to read as follows:
         Sec. 3959.0110.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (c)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.