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AN ACT
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relating to the creation of the Denton County Municipal Utility |
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District No. 9; granting a limited power of eminent domain; |
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providing authority to issue bonds; providing authority to impose |
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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 F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 7977 to read as follows: |
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CHAPTER 7977. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 9 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 7977.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(3) "Director" means a board member. |
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(4) "District" means the Denton County Municipal |
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Utility District No. 9. |
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Sec. 7977.002. NATURE OF DISTRICT. The district is a |
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municipal utility district created under Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 7977.003. CONFIRMATION AND DIRECTORS' ELECTION |
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REQUIRED. The temporary directors shall hold an election to |
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confirm the creation of the district and to elect five permanent |
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directors as provided by Section 49.102, Water Code. |
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Sec. 7977.004. CONSENT OF MUNICIPALITY REQUIRED. The |
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temporary directors may not hold an election under Section 7977.003 |
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until each municipality in whose corporate limits or |
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extraterritorial jurisdiction the district is located has |
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consented by ordinance or resolution to the creation of the |
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district and to the inclusion of land in the district. |
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Sec. 7977.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) |
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The district is created to serve a public purpose and benefit. |
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(b) The district is created to accomplish the purposes of: |
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(1) a municipal utility district as provided by |
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general law and Section 59, Article XVI, Texas Constitution; and |
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(2) Section 52, Article III, Texas Constitution, that |
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relate to the construction, acquisition, improvement, operation, |
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or maintenance of macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7977.006. INITIAL DISTRICT TERRITORY. (a) The |
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district is initially composed of the territory described by |
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Section 2 of the Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake made 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 issue any type of bond for the purposes |
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for which the district is created or to pay the principal of and |
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interest on a bond; |
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(3) right to impose a tax; or |
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(4) legality or operation. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 7977.051. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of five elected directors. |
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(b) Except as provided by Section 7977.052, directors serve |
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staggered four-year terms. |
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Sec. 7977.052. TEMPORARY DIRECTORS. (a) On or after |
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September 1, 2017, the owner or owners of a majority of the assessed |
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value of the real property in the district may submit a petition to |
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the commission requesting that the commission appoint as temporary |
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directors the five persons named in the petition. The commission |
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shall appoint as temporary directors the five persons named in the |
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petition. |
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(b) Temporary directors serve until the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7977.003; or |
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(2) September 1, 2021. |
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(c) If permanent directors have not been elected under |
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Section 7977.003 and the terms of the temporary directors have |
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expired, successor temporary directors shall be appointed or |
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reappointed as provided by Subsection (d) to serve terms that |
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expire on the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7977.003; or |
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(2) the fourth anniversary of the date of the |
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appointment or reappointment. |
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(d) If Subsection (c) applies, the owner or owners of a |
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majority of the assessed value of the real property in the district |
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may submit a petition to the commission requesting that the |
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commission appoint as successor temporary directors the five |
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persons named in the petition. The commission shall appoint as |
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successor temporary directors the five persons named in the |
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petition. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 7977.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 7977.102. MUNICIPAL UTILITY DISTRICT POWERS AND |
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DUTIES. The district has the powers and duties provided by the |
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general law of this state, including Chapters 49 and 54, Water Code, |
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applicable to municipal utility districts created under Section 59, |
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Article XVI, Texas Constitution. |
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Sec. 7977.103. AUTHORITY FOR ROAD PROJECTS. Under Section |
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52, Article III, Texas Constitution, the district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7977.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road |
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project must meet all applicable construction standards, zoning and |
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subdivision requirements, and regulations of each municipality in |
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whose corporate limits or extraterritorial jurisdiction the road |
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project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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Sec. 7977.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE |
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OR RESOLUTION. The district shall comply with all applicable |
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requirements of any ordinance or resolution that is adopted under |
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Section 54.016 or 54.0165, Water Code, and that consents to the |
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creation of the district or to the inclusion of land in the |
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district. |
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Sec. 7977.106. FIREFIGHTING SERVICES. Notwithstanding |
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Section 49.351(a), Water Code, the district may, as authorized by |
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Section 59(f), Article XVI, Texas Constitution, and Section 49.351, |
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Water Code: |
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(1) establish, operate, and maintain a fire |
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department; |
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(2) contract with another political subdivision for |
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the joint operation of a fire department; or |
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(3) contract with any other person to perform |
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firefighting services in the district and may issue bonds and |
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impose taxes to pay for the department and the activities. |
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Sec. 7977.107. FEES AND CHARGES. (a) The district may |
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adopt and enforce all necessary charges, mandatory fees, or |
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rentals, in addition to taxes, for providing or making available |
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any district facility or service, including firefighting |
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activities provided under Section 7977.106. |
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(b) To enforce payment of an unpaid fee or charge due to the |
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district, on the request of the district, a retail public utility, |
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as defined by Section 13.002, Water Code, providing water or sewer |
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service to a customer in the district shall terminate the service. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 7977.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The |
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district may issue, without an election, bonds and other |
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obligations secured by: |
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(1) revenue other than ad valorem taxes; or |
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(2) contract payments described by Section 7977.153. |
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(b) The district must hold an election in the manner |
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provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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before the district may impose an ad valorem tax or issue bonds |
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payable from ad valorem taxes. |
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(c) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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Sec. 7977.152. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election held under Section 7977.151, the district |
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may impose an operation and maintenance tax on taxable property in |
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the district in accordance with Section 49.107, Water Code. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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Sec. 7977.153. CONTRACT TAXES. (a) In accordance with |
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Section 49.108, Water Code, the district may impose a tax other than |
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an operation and maintenance tax and use the revenue derived from |
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the tax to make payments under a contract after the provisions of |
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the contract have been approved by a majority of the district voters |
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voting at an election held for that purpose. |
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(b) A contract approved by the district voters may contain a |
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provision stating that the contract may be modified or amended by |
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the board without further voter approval. |
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SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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Sec. 7977.201. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS. The district may issue bonds or other obligations |
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payable wholly or partly from ad valorem taxes, impact fees, |
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revenue, contract payments, grants, or other district money, or any |
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combination of those sources, to pay for any authorized district |
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purpose. |
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Sec. 7977.202. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct ad valorem tax, without limit as to rate or amount, while all |
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or part of the bonds are outstanding as required and in the manner |
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provided by Sections 54.601 and 54.602, Water Code. |
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Sec. 7977.203. BONDS FOR ROAD PROJECTS. At the time of |
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issuance, the total principal amount of bonds or other obligations |
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issued or incurred to finance road projects and payable from ad |
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valorem taxes may not exceed one-fourth of the assessed value of the |
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real property in the district. |
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SECTION 2. The Denton County Municipal Utility District |
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No. 9 initially includes all the territory contained in the |
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following area: |
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All that certain lot, tract or parcel of land lying and being |
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situated in Denton County, Texas and being a part of the R.R. Jowell |
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Survey, Abstract number 660 and also being a part of those tracts of |
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land described in deed to The JP Griffin Family Limited Partnership |
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recorded in Document number 1995-1682 and 1995-1683, Real Property |
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Records, Denton County, Texas and further described as Frist Tract |
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and Third Tract in Volume 347, Page 141, Deed Records, Denton |
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County, Texas and being more fully described by metes and bounds as |
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follows; |
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BEGINNING at a capped iron rod set stamped "KAZ" at the Most |
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Westerly Southwest corner of said First tract; |
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THENCE North 00 degrees 09 minutes 00 seconds East, 186.74 feet to a |
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capped iron rod set stamped "KAZ" at a reentrant corner of said |
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First tract and an ell corner of that called 114.00 acre tract of |
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land described in deed to Serax Ranch LTD. recorded in Instrument |
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number 1995-70429, Real Property Records, Denton County, Texas; |
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THENCE along the common line of said 114.00 acre tract and this |
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tract, South 89 degrees 51 minutes 00 seconds East, 938.96 feet to a |
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1/2 inch iron rod found at an ell corner of said First tract and a |
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reentrant corner of said 114.00 acre tract; |
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THENCE North 00 degrees 21 minutes 14 seconds East, 456.75 feet to a |
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TXDOT monument found in the new South line of U.S. Highway 380; |
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THENCE along said South line, South 71 degrees 55 minutes 00 seconds |
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East, 180.29 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 80 degrees 01 |
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minutes 46 seconds East, 99.99 feet to a TXDOT monument found; |
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THENCE continuing along said South line, North 76 degrees 08 |
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minutes 36 seconds East, 327.87 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 80 degrees 08 |
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minutes 48 seconds East, 999.73 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 71 degrees 41 |
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minutes 06 seconds East, 101.07 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 84 degrees 21 |
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minutes 50 seconds East, 200.57 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 80 degrees 07 |
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minutes 31 seconds East, 1400.23 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 72 degrees 55 |
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minutes 42 seconds East, 312.20 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 85 degrees 18 |
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minutes 17 seconds East, 600.23 feet to a TXDOT monument found; |
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THENCE continuing along said South line, North 86 degrees 06 |
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minutes 47 seconds East, 101.08 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 85 degrees 19 |
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minutes 44 seconds East, 800.10 feet to a TXDOT monument found; |
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THENCE continuing along said South line, South 89 degrees 35 |
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minutes 24 seconds East, 247.96 feet to a TXDOT monument found; |
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THENCE North 05 degrees 59 minutes 08 seconds East, 15.84 feet to a |
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capped iron rod set stamped "KAZ"; |
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THENCE continuing along said South line, South 84 degrees 16 |
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minutes 38 seconds East, 330.78 feet to a capped iron rod set |
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stamped "KAZ"; |
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THENCE South 42 degrees 40 minutes 33 seconds East, 147.19 feet to a |
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capped iron rod set stamped "KAZ" in the West line of F.M. 2622; |
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THENCE along said West line, South 00 degrees 04 minutes 34 seconds |
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East, 1268.92 feet to a capped iron rod set stamped "KAZ"; |
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THENCE South 45 degrees 24 minutes 27 seconds West, 70.09 feet to a |
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P.K. nail set in the centerline of George Foster Road; |
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THENCE along said centerline, North 89 degrees 01 minutes 43 |
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seconds West, 2458.67 feet to a P.K. nail set; |
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THENCE continuing along said centerline, North 89 degrees 21 |
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minutes 15 seconds West, 2704.05 feet to a 1/2 inch iron rod found; |
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THENCE North 00 degrees 02 minutes 51 seconds West, 125.54 feet to a |
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1/2 inch iron rod found; |
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THENCE continuing along said centerline, part of the way, North 49 |
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degrees 00 minutes 24 seconds West, 1925.59 feet to the PLACE OF |
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BEGINNING and containing 230.43 acres of land more or less; |
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This description is based upon an exhibit as prepared by KAZ |
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Surveying, dated ________________. Bearings are based upon the |
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West line of the 583.12 acre tract of land. |
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SECTION 3. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 4. (a) If this Act does not receive a two-thirds |
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vote of all the members elected to each house, Subchapter C, Chapter |
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7977, Special District Local Laws Code, as added by Section 1 of |
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this Act, is amended by adding Section 7977.108 to read as follows: |
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Sec. 7977.108. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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(b) This section is not intended to be an expression of a |
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legislative interpretation of the requirements of Section 17(c), |
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Article I, Texas Constitution. |
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SECTION 5. This Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2566 was passed by the House on May 4, |
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2017, by the following vote: Yeas 140, Nays 3, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2566 was passed by the Senate on May |
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24, 2017, by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |