82(R) SB 1184 - Enrolled version

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	S.B. No. 1184

AN ACT

relating to the creation of the Timber Springs Municipal Management

District; providing authority to impose a tax, levy an assessment,

and issue bonds.

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 3897 to read as follows:

CHAPTER 3897. TIMBER SPRINGS MUNICIPAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3897.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Timber Springs Municipal

Management District.

(4) "Improvement project" means a project authorized

by Subchapter C-1.

Sec. 3897.002. CREATION AND NATURE OF DISTRICT. The

district is a special district created under Section 59, Article

XVI, Texas Constitution.

Sec. 3897.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The

creation of the district is essential to accomplish the purposes of

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution, and other public purposes stated in this

chapter. By creating the district and in authorizing a

municipality in which the district is located 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.

(b) 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.

interpreted to relieve a municipality or county in which the

district is located 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 municipal and county services provided in the district.

Sec. 3897.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) The district is created to serve a public use and benefit.

(b) All land and other property included in the district

will benefit from the improvements and services to be provided by

the district under powers conferred by Sections 52 and 52-a,

Article III, and Section 59, Article XVI, Texas Constitution, and

other powers granted under this chapter.

and is essential to further the public purposes of:

(1) developing and diversifying the economy of the

state;

(2) eliminating unemployment and underemployment;

(3) providing quality residential housing; and

(4) 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 residential community and business

center; and

(3) promote the health, safety, welfare, and enjoyment

of the public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty.

(e) Pedestrian ways along or across a street, whether at

grade or above or below the surface, and street lighting, street

landscaping, vehicle parking, and street art objects are parts of

and necessary components of a street and are considered to be an

improvement project that includes 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. 3897.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act enacting

this chapter, as that territory may have been modified under

Section 3897.115 or other law.

(b) A mistake in the field notes of the district contained

in Section 2 of the Act enacting this chapter or in copying the

field notes in the legislative process does not in any way affect:

(1) the district's organization, existence, or

validity;

(2) the district's right to contract, including the

right to issue any type of bond or other obligation for a purpose

for which the district is created;

(3) the district's right to impose or collect an

assessment, tax, or any other revenue; or

(4) the legality or operation of the board.

Sec. 3897.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.

(a) All or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created by a

municipality in which the district is located under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created by a

municipality in which the district is located under Chapter 312,

Tax Code;

(3) an enterprise zone created by a municipality in

which the district is located under Chapter 2303, Government Code;

(4) an industrial zone created by a municipality in

which the district is located under Chapter 42, Local Government

Code.

(b) If a municipality in which the district is located

creates a tax increment reinvestment zone described by Subsection

(a), the municipality and the board of directors of the zone, by

contract with the district, may grant money deposited in the tax

increment fund to the district to be used by the district for the

purposes permitted for money granted to a corporation under Section

380.002(b), Local Government Code, including the right to pledge

the money as security for any bonds issued by the district for an

improvement project.

[Sections 3897.007-3897.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3897.051. GOVERNING BODY; TERMS. The district is

governed by a board of five directors who serve staggered terms of

four years, with two or three directors' terms expiring May 31 of

each even-numbered year.

Sec. 3897.052. ELECTION DATE. The board shall hold an

election for directors on the uniform election date in May in

even-numbered years.

Sec. 3897.053. ELIGIBILITY. (a) To be qualified to serve

as a director, a person must be:

(1) an owner of real property in the district; or

(2) an employee of a person described by Subdivision

(1).

(b) Section 49.052, Water Code, does not apply to the

district.

Sec. 3897.054. VACANCY. (a) The remaining directors shall

fill a vacancy on the board by appointing a person who meets the

qualifications prescribed by Section 3897.053.

(b) If there are fewer than three directors, the governing

body of the largest municipality in which the district is located

shall appoint the necessary number of directors to fill all board

vacancies.

Sec. 3897.055. DIRECTOR'S OATH OR AFFIRMATION. A director

shall file the director's oath or affirmation of office with the

district, and the district shall retain the oath or affirmation in

the district records.

Sec. 3897.056. OFFICERS. The board shall elect from among

the directors a chair, a vice chair, and a secretary.

Sec. 3897.057. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF

EXPENSES. (a) The district may compensate each director in an

amount not to exceed $50 for each board meeting. The total amount

of compensation a director may receive each year may not exceed

$2,000.

(b) A director is entitled to reimbursement for necessary

and reasonable expenses incurred in carrying out the duties and

responsibilities of a director.

Sec. 3897.058. INITIAL DIRECTORS. (a) The initial board

consists of the following directors:

Pos. No.

Name of Director

Charles F. Jordan

Darren Woody

Rob Hutchison

Joe Geer

Nick Craig

(b) Of the initial directors, the terms of directors

appointed for positions 1 and 2 expire May 31, 2012, and the terms

of directors appointed for positions 3 through 5 expire May 31,

2014.

[Sections 3897.059-3897.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3897.101. GENERAL POWERS AND DUTIES. The district has

the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 3897.102. IMPROVEMENT PROJECTS AND SERVICES. The

district may provide, design, construct, acquire, improve,

relocate, operate, maintain, or finance an improvement project or

service using money available to the district, or contract with a

governmental or private entity to provide, design, construct,

acquire, improve, relocate, operate, maintain, or finance an

improvement project or service authorized under this chapter,

including a project described by Subchapter C-1, or under Chapter

375, Local Government Code.

Sec. 3897.103. DEVELOPMENT CORPORATION POWERS. The

district, using money available to the district, may exercise the

powers given to a development corporation under Chapter 505, Local

Government Code, including the power to own, operate, acquire,

construct, lease, improve, or maintain a project under that

chapter.

Sec. 3897.104. 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.

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. 3897.105. AGREEMENTS; GRANTS. (a) As provided by

Chapter 375, Local Government Code, the district may make an

agreement with or accept a gift, grant, or loan from any person.

(b) The implementation of a project is a governmental

function or service for the purposes of Chapter 791, Government

Code.

Sec. 3897.106. LAW ENFORCEMENT SERVICES. To protect the

public interest, the district may contract with a qualified party,

including a county or a city, to provide law enforcement services in

the district for a fee.

Sec. 3897.107. 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. 3897.108. ECONOMIC DEVELOPMENT. (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.

and exercise the economic development powers that:

(1) Chapter 380, Local Government Code, provides to a

municipality; and

(2) Subchapter A, Chapter 1509, Government Code,

provides to a municipality.

Sec. 3897.109. WATER DISTRICT POWERS. The district has the

powers provided by the general laws relating to conservation and

reclamation districts created under Section 59, Article XVI, Texas

Constitution, including Chapters 49 and 54, Water Code.

Sec. 3897.110. ROAD DISTRICT POWERS; EXCEPTION.

(a) Except as provided by Subsection (b) and Section 3897.117, the

district has the powers provided by the general laws relating to

road districts and road utility districts created under Section

52(b), Article III, Texas Constitution, including Chapter 441,

Transportation Code.

(b) The district may exercise any power granted by this

chapter and by Chapter 441, Transportation Code, without regard to

any provision or requirement of, or procedure or maintenance tax

rate limitation prescribed by, Chapter 441, Transportation Code.

Sec. 3897.111. CONFLICT WITH MUNICIPAL RULE, ORDER, OR

ORDINANCE. To the extent a district rule conflicts with a rule,

order, or ordinance of a municipality in which the district is

located, the municipal rule, order, or ordinance controls.

Sec. 3897.112. NAME CHANGE. The board by resolution may

change the district's name. The board shall give written notice of

the change to each municipality in which the district is located.

Sec. 3897.113. TERMS OF EMPLOYMENT; COMPENSATION. The

board may employ and establish the terms of employment and

compensation of an executive director or general manager and any

other district employees the board considers necessary.

Sec. 3897.114. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OR

FACILITY OF DISTRICT. (a) The board by rule may regulate the

private use of a public roadway, open space, park, sidewalk, or

similar public area or facility in the district. A rule may provide

for the safe and orderly use of public roadways, open spaces, parks,

sidewalks, and similar public areas or facilities.

(b) The board may require a permit for a parade,

demonstration, celebration, entertainment event, or similar

nongovernmental activity in or on a public roadway, open space,

park, sidewalk, or similar public area or facility owned by the

district. The board may charge a fee for the permit application or

for public safety or security services for those facilities in an

amount the board considers necessary.

with a vendor, concessionaire, exhibitor, or similar private or

commercial person or organization for the limited use of the area or

facility owned by the district on terms and on payment of a permit

or franchise fee the board may impose.

Sec. 3897.115. ADDING OR REMOVING TERRITORY. As provided

by Subchapter J, Chapter 49, Water Code, the board may add territory

to the district, subject to Section 54.016, Water Code, or remove

territory from the district, except that:

(1) the addition or removal of the territory must be

approved by:

(A) the governing body of the municipality in

which the territory is located, as applicable; and

(B) the owners of the territory being added or

removed;

(2) a reference to a tax in Subchapter J, Chapter 49,

or Section 54.016, Water Code, means an ad valorem tax; and

(3) territory may not be removed from the district if

bonds or other obligations of the district payable wholly or partly

from ad valorem taxes or assessments levied or assessed on the

territory are outstanding.

Sec. 3897.116. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

Sec. 3897.117. NO TOLL ROADS. The district may not

construct, acquire, maintain, or operate a toll road.

[Sections 3897.118-3897.150 reserved for expansion]

SUBCHAPTER C-1. IMPROVEMENT PROJECTS

Sec. 3897.151. MUNICIPAL REQUIREMENTS. (a) An

improvement project in a municipality must comply with any

applicable municipal requirements, including codes and ordinances.

(b) The district may not provide, conduct, or authorize any

improvement project on the municipality's streets, highways,

rights-of-way, or easements without the consent of the governing

body of that municipality.

Sec. 3897.152. BOARD DETERMINATION REQUIRED. The district

may not undertake an improvement project unless the board

determines the project to be necessary to accomplish a public

purpose of the district.

Sec. 3897.153. LOCATION OF IMPROVEMENT PROJECT. An

improvement project may be inside or outside the district.

Sec. 3897.154. LAKE. For the purposes of this subchapter,

planning, design, construction, improvement, or maintenance of a

lake includes work done for drainage, reclamation, or recreation.

Sec. 3897.155. WATER. (a) An improvement project may

include a supply and distribution facility or system to provide

potable and nonpotable water to the residents and businesses of the

district, including a wastewater collection facility.

(b) The district may plan, design, construct, improve,

maintain, or operate a water or sewer facility under this section.

Sec. 3897.156. ROADS. An improvement project may include a

paved, macadamized, or graveled road or street inside and outside

the district, to the full extent authorized by Section 52, Article

III, Texas Constitution.

Sec. 3897.157. STORM WATER. An improvement project may

include protection and improvement of the quality of storm water

that flows through the district.

Sec. 3897.158. PARKING OR HELIPORT. An improvement project

may include the planning, design, construction, improvement,

maintenance, and operation of an off-street parking facility or

heliport.

Sec. 3897.159. EDUCATION AND CULTURE. An improvement

project may include the planning and acquisition of:

(1) public art and sculpture and related exhibits and

facilities; or

(2) an educational facility and a cultural exhibit or

facility.

Sec. 3897.160. CONVENTION CENTER. An improvement project

may include the planning, design, construction, acquisition,

lease, rental, improvement, maintenance, installation, and

management of and provision of furnishings for a facility for:

(1) a conference, convention, or exhibition;

(2) a manufacturer, consumer, or trade show;

(3) a civic, community, or institutional event; or

(4) an exhibit, display, attraction, special event, or

seasonal or cultural celebration or holiday.

Sec. 3897.161. DEMOLITION. An improvement project may

include the removal, razing, demolition, or clearing of land or

improvements in connection with an improvement project.

Sec. 3897.162. MITIGATION OF ENVIRONMENTAL EFFECTS. An

improvement project may include the acquisition and improvement of

land or other property for the mitigation of the environmental

effects of an improvement project.

Sec. 3897.163. ACQUISITION OF PROPERTY. If the governing

body of the municipality where the improvement project is located

consents, an improvement project may include the acquisition of

property or an interest in property in connection with an

improvement project, including a project authorized by Subchapter

A, Chapter 372, Local Government Code.

Sec. 3897.164. SPECIAL OR SUPPLEMENTAL SERVICES. An

improvement project may include a special or supplemental service

for the improvement and promotion of the district or an area

adjacent to the district or for the protection of public health and

safety in or adjacent to the district, including:

(1) advertising;

(2) promotion;

(3) tourism;

(4) health and sanitation;

(5) public safety;

(6) security;

(7) fire protection or emergency medical services;

(8) business recruitment;

(9) development;

(10) the elimination of traffic congestion; and

(11) recreational, educational, or cultural

improvements, enhancements, and services.

Sec. 3897.165. MISCELLANEOUS DESIGN, CONSTRUCTION, AND

MAINTENANCE. An improvement project may include the planning,

design, construction, improvement, and maintenance of:

(1) landscaping;

(2) highway right-of-way or transit corridor

beautification and improvement;

(3) lighting, banners, and signs;

(4) a street or sidewalk;

(5) a hiking and cycling path or trail;

(6) a pedestrian walkway, skywalk, crosswalk, or

tunnel;

(7) a park, lake, garden, recreational facility,

community activities center, dock, wharf, sports facility, open

space, scenic area, or related exhibit or preserve;

(8) a fountain, plaza, or pedestrian mall; or

(9) a drainage or storm water detention improvement.

Sec. 3897.166. SIMILAR IMPROVEMENT PROJECTS. An

improvement project may include a public improvement, facility, or

service similar to a project described by this subchapter.

[Sections 3897.167-3897.200 reserved for expansion]

SUBCHAPTER C-2. CONTRACTS

Sec. 3897.201. GENERAL CONTRACT POWERS. The district may

contract with any person, including a municipality or county in

which the district is located, to accomplish any district purpose.

Sec. 3897.202. CONTRACT TERMS. (a) In this section,

"note" includes a bond anticipation note.

(b) A contract the district enters into to carry out a

purpose of this chapter may be on any terms and for any period the

board determines, including an obligation to issue a negotiable or

nonnegotiable note or warrant payable to a municipality, a county,

or any other person for the payment or reimbursement of any district

costs.

Sec. 3897.203. REIMBURSEMENT OF COSTS. The district may

contract with any person for the payment, repayment, or

reimbursement of costs incurred by that person on behalf of the

district, including all or part of the costs of an improvement

project and interest on the reimbursed cost.

Sec. 3897.204. CONTRACT FOR IMPROVEMENT PROJECT. (a) The

district may contract with any person for the use, occupancy,

lease, rental, operation, maintenance, or management of all or part

of a proposed or existing improvement project.

(b) The district may apply for and contract with any person

to receive, administer, and perform a duty or obligation of the

district under a federal, state, local, or private gift, grant,

loan, conveyance, transfer, bequest, or other financial assistance

arrangement relating to the investigation, planning, analysis,

study, design, acquisition, construction, improvement, completion,

implementation, or operation by the district or others of a

proposed or existing improvement project.

[Sections 3897.205-3897.250 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3897.251. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO

IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district

may issue bonds, impose taxes, or borrow money, the district and

each municipality in which the district is located must negotiate

and execute a project development agreement regarding the

development plans and rules for:

(1) the development and operation of the district; and

(2) the financing of improvement projects.

Sec. 3897.252. ELECTIONS REGARDING TAXES AND BONDS.

(a) The district may issue, without an election, bonds, notes, and

other obligations secured by revenue other than ad valorem taxes.

(b) The district must hold an election in the manner

provided by Subchapter L, Chapter 375, Local Government Code, to

obtain voter approval before the district may impose an ad valorem

tax or issue bonds payable from ad valorem taxes.

to the district.

(d) 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. 3897.253. AUTHORITY TO BORROW MONEY AND TO ISSUE

BONDS. (a) The district may borrow money on terms determined by

the board. Section 375.205, Local Government Code, does not apply

to a loan, line of credit, or other borrowing from a bank or

financial institution secured by revenue other than ad valorem

taxes.

(b) The district may issue 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.

Sec. 3897.254. ASSESSMENTS. (a) The district may impose

an assessment on property in the district to pay the cost or the

cost of maintenance of any authorized district improvement in the

manner provided for:

(1) a district under Subchapters A, E, and F, Chapter

375, Local Government Code; or

(2) a municipality or county under Subchapter A,

Chapter 372, Local Government Code.

(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; and

(2) are superior to any other lien or claim other than

a lien or claim for county, school district, or municipal ad valorem

taxes.

land. The portion of an assessment payment obligation that has not

yet come due is not eliminated by the foreclosure of an ad valorem

tax lien, and any purchaser of property in a foreclosure of an ad

valorem tax lien takes the property subject to the assessment

payment obligations that have not yet come due and to the lien and

terms of the lien's payment under the applicable assessment

ordinance or order.

(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. 3897.255. 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. 3897.256. IMPACT FEES; EXEMPTION. (a) The district

may impose an impact fee on property in the district, including an

impact fee on residential or commercial property, only in the

manner provided by Subchapter A, Chapter 372, or Subchapter F,

Chapter 375, Local Government Code, for a municipality or county.

(b) An impact fee for residential property must be for the

limited purpose of providing capital funding for:

(1) public water and wastewater facilities;

(2) drainage and storm water facilities; and

(3) streets and alleys.

property, including equipment and facilities, of a public utility

provider in the district.

Sec. 3897.257. STORM WATER USER CHARGES. The district may

establish user charges related to the operation of storm water

facilities, including the regulation of storm water for the

protection of water quality in the district.

Sec. 3897.258. NONPOTABLE WATER USER CHARGES. The district

may establish user charges for the use of nonpotable water for

irrigation purposes, subject to approval of the governing body of

the municipality in which the user is located.

Sec. 3897.259. COSTS FOR IMPROVEMENT PROJECTS. The

district may undertake separately or jointly with other persons,

including a municipality or county in which the district is

located, all or part of the cost of an improvement project,

including an improvement project:

(1) for improving, enhancing, and supporting public

safety and security, fire protection and emergency medical

services, and law enforcement in and adjacent to the district; or

(2) that confers a general benefit on the entire

district or a special benefit on a definable part of the district.

Sec. 3897.260. RESIDENTIAL PROPERTY NOT EXEMPT. Section

375.161, Local Government Code, does not apply to the district.

[Sections 3897.261-3897.300 reserved for expansion]

SUBCHAPTER E. TAXES AND BONDS

Sec. 3897.301. PROPERTY TAX AUTHORIZED. The district may

impose an ad valorem tax on all taxable property in the district,

including industrial, commercial, and residential property, to:

(1) pay for an improvement project of the types

authorized by Section 52, Article III, and Section 59, Article XVI,

Texas Constitution; or

(2) secure the payment of bonds issued for a purpose

described by Subdivision (1).

Sec. 3897.302. TAXES FOR BONDS AND OTHER OBLIGATIONS;

ELECTION. (a) If the district issues bond anticipation notes

payable from future bond proceeds that are payable wholly or partly

from an ad valorem tax, the bonds must have been previously approved

at an election and meet the requirements of this section.

(b) At the time bonds or other obligations payable wholly or

partly from ad valorem taxes are issued:

(1) the board shall impose 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; and

(2) the district annually shall impose an ad valorem

tax on all taxable property in the district in an amount sufficient

to:

(A) pay the interest on the bonds or other

obligations as the interest becomes due;

(B) create a sinking fund for the payment of the

principal of the bonds or other obligations when due or the

redemption price at any earlier required redemption date; and

payable from ad valorem taxes may not be issued unless the bonds and

the imposition of the taxes are approved by a majority of the

district voters voting at an election held for that purpose.

(d) The district shall hold an election required by this

section in the manner provided by Chapter 54, Water Code, and the

Election Code.

Sec. 3897.303. MAINTENANCE AND OPERATION TAX; ELECTION.

(a) The district may impose a tax for maintenance and operation

purposes, including for:

(1) planning, constructing, acquiring, maintaining,

repairing, and operating all improvement projects, including land,

plants, works, facilities, improvements, appliances, and equipment

of the district; and

(2) paying costs of services, engineering and legal

fees, and organization and administrative expenses.

(b) The district may not impose a maintenance and operation

tax unless the tax is approved by a majority of the district voters

voting at an election held for that purpose. The proposition in a

maintenance and operation tax election may be for a specific

maximum rate or for an unlimited rate. If a maximum tax rate is

approved, the board may impose the tax at any rate that does not

exceed the approved rate.

the same time and in conjunction with any other district election.

The election may be called by a separate election order or as part

of any other election order.

Sec. 3897.304. USE OF SURPLUS MAINTENANCE AND OPERATION

MONEY. If the district has maintenance and operation tax money that

is not needed for the purposes for which it was collected, the money

may be used for any authorized purpose.

Sec. 3897.305. TAX ABATEMENT. The district may enter into a

tax abatement agreement in accordance with the general laws of this

state authorizing and applicable to a tax abatement agreement by a

municipality.

Sec. 3897.306. BONDS AND OTHER OBLIGATIONS; MUNICIPAL

APPROVAL. (a) The district by competitive bid or negotiated sale

may issue bonds, notes, or other obligations payable wholly or

partly from ad valorem taxes, future bond proceeds, or assessments

in the manner provided by Subchapter A, Chapter 372, or Subchapter

J, Chapter 375, Local Government Code.

(b) In exercising the district's borrowing power, the

district may issue a bond or other obligation in the form of a bond,

note, including a bond anticipation note, certificate of

participation or other instrument evidencing a proportionate

interest in payments to be made by the district, or any other type

of obligation.

Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local

Government Code, district bonds may be secured and made payable,

wholly or partly, by a pledge of any part of the money the district

receives from system or improvement revenue or from any other

source, including future bond proceeds.

Sec. 3897.307. BOND MATURITY. Bonds may mature not more

than 40 years from their date of issue.

[Sections 3897.308-3897.350 reserved for expansion]

SUBCHAPTER F. DISSOLUTION

Sec. 3897.351. DISSOLUTION BY MUNICIPAL ORDINANCE. The

largest municipality in which the district is located may dissolve

the district by ordinance.

Sec. 3897.352. LIMITATION ON DISSOLUTION. The municipality

may not dissolve the district until:

(1) the district's outstanding bonds have been repaid

or defeased;

(2) the district's outstanding debt or contractual

obligations that are payable from ad valorem taxes have been repaid

or discharged; and

(3) each agreement under Section 3897.251 has been

executed and the district's performance under the agreement has

been fulfilled, including any right or obligation the district has

to reimburse a developer or owner for the costs of improvement

projects.

Sec. 3897.353. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.

(a) If the dissolved district has obligations, other than bonds,

outstanding secured by and payable from assessments or other

revenue, other than ad valorem taxes, the municipality in which the

project that generated the revenue is located shall succeed to the

rights and obligations of the district regarding enforcement and

collection of the assessments or other revenue.

(b) The municipality shall have and exercise all district

powers to enforce and collect the assessments or other revenue to

pay:

(1) the obligations when due and payable according to

their terms; or

(2) special revenue or assessment bonds or other

obligations issued by the municipality to refund the outstanding

obligations.

Sec. 3897.354. ASSUMPTION OF ASSETS AND LIABILITIES.

(a) After the municipality dissolves the district, the

municipality assumes the obligations of the district, including any

debt payable from assessments or other district revenue.

(b) If the municipality dissolves the district, the board

shall transfer ownership of all district property to the

municipality in which the property is located, or if the property is

not located in a municipality, to the county in which the property

is located.

SECTION 2. The district shall include the following land,

described by metes and bounds as follows:

All that certain tract or parcel of land lying and being

situate in the City of Nacogdoches, Nacogdoches County, Texas on

the SAMUEL MARSHALL SURVEY, A-365, being part of a 98.4 acre tract

described as 1st Tract of Second Tract, part of a 34.1 acre tract

described as Third Tract, part of a 7.111 acre tract described as

Fifth Tract, and part of a 13.592 acre tract described as Seventh

Tract in a deed from C.S. Jones, et ux, to Lone Star Breeder Farm,

Inc., dated January 24, 1958, recorded in Volume 272, Page 359 of

the DRNCT, and part of a 240.7 acre tract described as First Tract

in a deed from Christian Medical Foundation, Inc., to Lone Star

Breeder Farm, Inc., recorded in Volume 334, Page 122 of the DRNCT,

and more particularly described as follows:

BEGINNING at a 1-1/2" iron pipe found at the base of a fence

corner post for the SWC of the Kenbrook North Addition, recorded in

Volume 3, Page 5-7 of the Plat Records of Nacogdoches County, Texas

(PRNCT), the NWC of the 13.592 acre tract, and in the EBL of the 98.4

acre tract;

THENCE N 86°12'34" E (called N 86°45' E in 272/359 and N

89°36'53" E in 3/5-7 PRNCT) with the NBL of the 13.592 acre tract and

the SBL of Kenbrook North Addition, at 286.9 feet pass a point 1.7

feet south of a 3/4" iron rod found, at 406.6 feet pass a point 0.3

feet north of a 1/2" iron rod found, at 525.6 feet pass a point 1.4

feet south of a 3/4" iron rod found, at 766.6 feet pass a point 1.0

feet south of a 3/4" iron pipe found, at 886.6 feet pass a point 0.5

feet south of a 5/8" iron rod found, and in all 992.29 feet (called

1119.4' in 272/359 and 994.65' in 3/5-7 PRNCT) to a 2" iron pipe

found for angle corner in the SBL of Kenbrook North Addition, the

occupied NEC of the 13.592 acre tract, the NWC of a 11.3 acre tract

described as Tract Two in a deed from Texas Service Life Insurance

Company to Lyle Thorstenson, et ux, dated November 4, 1992,

recorded in Volume 828, Page 30 of the DRNCT;

THENCE S 06°42'53" W (called S 10° W in 272/359 and S 11° W in

828/30) with the occupied EBL of the 13.592 acre tract and the WBL

of the 11.3 acre tract, at 362.61 feet pass a 3/8" iron rod found for

the SWC of the 11.3 acre tract and the NWC of a 10.39 acre tract

described in a deed from Tom Jones to Charles Logan, et ux, dated

July 22, 1966, recorded in Volume 337, Page 372 of the DRNCT, and in

all 382.11 feet to a point for corner in the centerline of a branch

and the WBL of the 10.39 acre tract;

THENCE with the meanders of the centerline of said branch as

follows:

1. S 82°09'36" W, 50.72 feet; 2. S 48°54'39" W, 35.18 feet;

3. S 34°22'24" W, 29.53 feet; 4. S 74°58'24" W, 18.52 feet;

5. S 49°38'26" W, 43.35 feet; 6. S 00°39'30" W, 39.58 feet;

7. S 55°24'09" W, 48.03 feet; 8. S 04°28'22" W, 45.81 feet;

9. S 56°30'54" W, 15.88 feet; 10. N 69°22'31" W, 46.25 feet;

11. S 55°31'51" W, 61.21 feet; 12. S 70°31'12" W, 100.13 feet;

13. S 85°50'02" W, 34.33 feet; 14. N 58°03'58" W, 51.81 feet;

15. S 79°38'09" W, 59.16 feet; 16. N 79°34'50" W, 57.07 feet;

17. N 62°50'24" W, 44.62 feet; 18. N 70°59'09" W, 29.20 feet;

19. N 46°17'24" W, 22.76 feet; 20. S 46°05'11" W, 106.77 feet;

21. N 52°48'49" W, 76.41 feet; 22. N 24°49'49" W, 32.59 feet;

23. N 68°46'25" W, 89.22 feet; 24. N 55°51'25" W, 44.31 feet;

25. N 60°43'07" W, 63.64 feet; 26. N 83°43'02" W, 76.64 feet;

27. N 39°08'20" W, 45.76 feet; 28. S 64°00'08" W, 55.43 feet;

29. S 78°15'18" W, 51.35 feet; 30. N 65°17'01" W, 40.20 feet;

31. N 51°25'37" W, 34.71 feet; 32. S 53°55'17" W, 95.66 feet;

33. S 64°46'48" W, 56.59 feet; 34. S 78°49'38" W, 60.02 feet;

35. N 84°08'55" W, 71.77 feet; 36. N 40°23'53" W, 27.74 feet;

37. N 60°00'50" W, 58.49 feet; 38. S 89°23'46" W, 38.39 feet;

39. S 51°47'35" W, 33.00 feet; 40. S 83°31'21" W, 29.43 feet;

41. S 41°10'09" W, 14.48 feet; 42. S 83°39'36" W, 22.67 feet;

43. N 20°02'08" W, 16.80 feet; 44. N 08°24'01" W, 14.46 feet;

45. N 65°25'57" W, 53.59 feet; 46. N 38°34'52" W, 33.98 feet;

47. N 76°14'16" W, 54.42 feet; 48. N 81°16'42" W, 44.12 feet;

49. N 60°00'12" W, 99.63 feet; 50. N 72°59'23" W, 68.62 feet;

51. N 68°45'56" W, 80.15 feet; 52. N 43°13'00" E, 40.35 feet;

53. N 78°25'21" W, 49.93 feet; 54. N 59°59'25" W, 60.28 feet;

55. N 49°49'20" W, 69.27 feet; 56. N 69°07'16" W, 53.13 feet

to a point for corner in the EBL of Lot 2, University Park

Subdivision, recorded in Volume 5, Page 33 of the PRNCT, from which

a 1/2" iron rod found for witness bears N 01°12'28" E, 30.00 feet;

THENCE N 01°12'28" E, 140.44 feet (called N 04°39'37" E in 5/33

PRNCT) with the EBL of Lot 2 to a 1" iron pipe found for corner, from

which a Tallow snag bears S 54~ W, 2.0 feet;

THENCE N 88°44'28" W (called N 85°23'52" W in 5/33 PRNCT),

75.00 feet with the NBL of Lot 2 to a 1/2" iron rod found for corner;

THENCE N 01°10'22" E, 345.85 feet to a 1/2" iron rod set for

corner in the SBL of a 4.145 acre tract described in a deed from Lone

Star Breeder Farm, Inc., to the City of Nacogdoches, dated July 16,

2007, recorded in Volume 2693, Page 177 of the DRNCT, said 4.145

acre tract being the right-of-way for Maroney Drive;

THENCE with the SBL of the 4.145 acre tract as follows:

1. S 88°49'38" E, 189.84 feet to a 1/2" iron rod set for

corner;

2. Northeasterly, 399.38 feet with a tangent curve to the

left having a radius of 527.35 feet, a central angle of 43°23'31",

and a chord of N 69°28'36" E, 389.90 feet to a 1/2" iron rod set for

corner;

3. N 86°47'25" E, 25.99 feet to a 1/2" iron rod set for

corner;

4. N 41°47'25" E, 73.31 feet to a 1/2" iron rod set for

corner;

5. N 03°12'35" W, 21.92 feet to a 1/2" iron rod set for

corner;

6. N 41°47'25" E, 151.81 feet to a 1/2" iron rod found for

corner;

7. Northeasterly, 388.82 feet with a tangent curve to the

right, having a radius of 472.65 feet, a central angle of 47°08'02",

and a chord of N 65°21'26" E, 377.95 feet to a 1/2" iron rod found

for corner;

8. N 88°55'28" E, 37.19 feet to a 1/2" iron rod set for

corner;

9. S 46°04'33" E, 21.92 feet to a 1/2" iron rod set for

corner;

10. N 88°55'28" E, 73.31 feet to a 1/2" iron rod set for

corner;

11. N 43°55'27" E, 21.92 feet to a 1/2" iron rod set for

corner;

12. N 88°55'28" E, at 296.5 feet pass a wire fence, and in all

304.32 feet to an "X" found chiseled in a concrete drive at the most

easterly SEC of the 4.145 acre tract, in the WBL of Kenbrook North

Addition and the EBL of the 240.7 acre tract;

THENCE S 07°05'37" W (called S 10° W), at 141.3 feet pass a

point 1.1 feet east of a 3/8" iron rod, at 240.2 feet pass a point

0.6 feet east of a 1/2" iron rod, at 360.2 feet pass a point 0.7 feet

east of a 1/2" pipe, and in all 876.83 feet to the place of BEGINNING

containing within these calls 44.34 acres.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2011.

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 1184 passed the Senate on

May 4, 2011, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1184 passed the House on

May 19, 2011, by the following vote: Yeas 148, Nays 0, one

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor