85R7454 GRM-F
 
  By: Stucky H.B. No. 2566
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Denton County Municipal Utility
  District No. 9; granting a limited power of eminent domain;
  providing authority to issue bonds; providing authority to impose
  assessments, fees, and taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 7977 to read as follows:
  CHAPTER 7977.  DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 9
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7977.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Denton County Municipal
  Utility District No. 9.
         Sec. 7977.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7977.003.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 7977.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 7977.003
  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.
         Sec. 7977.005.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)  
  The district is created to serve a public purpose and benefit.
         (b)  The district is created to accomplish the purposes of:
               (1)  a municipal utility district as provided by
  general law and Section 59, Article XVI, Texas Constitution; and
               (2)  Section 52, Article III, Texas Constitution, that
  relate to the construction, acquisition, improvement, operation,
  or maintenance of macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 7977.006.  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 made 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 bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 7977.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7977.052, directors serve
  staggered four-year terms.
         Sec. 7977.052.  TEMPORARY DIRECTORS.  (a)  On or after
  September 1, 2017, the owner or owners of a majority of the assessed
  value of the real property in the district may submit a petition to
  the commission requesting that the commission appoint as temporary
  directors the five persons named in the petition.  The commission
  shall appoint as temporary directors the five persons named in the
  petition.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 7977.003; or
               (2)  September 1, 2021.
         (c)  If permanent directors have not been elected under
  Section 7977.003 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 7977.003; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 7977.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7977.102.  MUNICIPAL UTILITY DISTRICT POWERS AND
  DUTIES.  The district has the powers and duties provided by the
  general law of this state, including Chapters 49 and 54, Water Code,
  applicable to municipal utility districts created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 7977.103.  AUTHORITY FOR ROAD PROJECTS. Under Section
  52, Article III, Texas Constitution, the district may design,
  acquire, construct, finance, issue bonds for, improve, operate,
  maintain, and convey to this state, a county, or a municipality for
  operation and maintenance macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 7977.104.  ROAD STANDARDS AND REQUIREMENTS. (a)  A road
  project must meet all applicable construction standards, zoning and
  subdivision requirements, and regulations of each municipality in
  whose corporate limits or extraterritorial jurisdiction the road
  project is located.
         (b)  If a road project is not located in the corporate limits
  or extraterritorial jurisdiction of a municipality, the road
  project must meet all applicable construction standards,
  subdivision requirements, and regulations of each county in which
  the road project is located.
         (c)  If the state will maintain and operate the road, the
  Texas Transportation Commission must approve the plans and
  specifications of the road project.
         Sec. 7977.105.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
  OR RESOLUTION.  The district shall comply with all applicable
  requirements of any ordinance or resolution that is adopted under
  Section 54.016 or 54.0165, Water Code, and that consents to the
  creation of the district or to the inclusion of land in the
  district.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 7977.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district may issue, without an election, bonds and other
  obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 7977.153.
         (b)  The district must hold an election in the manner
  provided by Chapters 49 and 54, Water Code, to obtain voter approval
  before the district may impose an ad valorem tax or issue bonds
  payable from ad valorem taxes.
         (c)  The district may not issue bonds payable from ad valorem
  taxes to finance a road project unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election held for that purpose.
         Sec. 7977.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7977.151, the district
  may impose an operation and maintenance tax on taxable property in
  the district in accordance with Section 49.107, Water Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 7977.153.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 7977.201.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS.  The district may issue bonds or other obligations
  payable wholly or partly from ad valorem taxes, impact fees,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for any authorized district
  purpose.
         Sec. 7977.202.  TAXES FOR BONDS. 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 ad valorem tax, without limit as to rate or amount, while all
  or part of the bonds are outstanding as required and in the manner
  provided by Sections 54.601 and 54.602, Water Code.
         Sec. 7977.203.  BONDS FOR ROAD PROJECTS. At the time of
  issuance, the total principal amount of bonds or other obligations
  issued or incurred to finance road projects and payable from ad
  valorem taxes may not exceed one-fourth of the assessed value of the
  real property in the district.
         SECTION 2.  The Denton County Municipal Utility District
  No. 9 initially includes all the territory contained in the
  following area:
  All that certain lot, tract or parcel of land lying and being
  situated in Denton County, Texas and being a part of the R.R. Jowell
  Survey, Abstract number 660 and also being a part of those tracts of
  land described in deed to The JP Griffin Family Limited Partnership
  recorded in Document number 1995-1682 and 1995-1683, Real Property
  Records, Denton County, Texas and further described as Frist Tract
  and Third Tract in Volume 347, Page 141, Deed Records, Denton
  County, Texas and being more fully described by metes and bounds as
  follows;
  BEGINNING at a capped iron rod set stamped "KAZ" at the Most
  Westerly Southwest corner of said First tract;
  THENCE North 00 degrees 09 minutes 00 seconds East, 186.74 feet to a
  capped iron rod set stamped "KAZ" at a reentrant corner of said
  First tract and an ell corner of that called 114.00 acre tract of
  land described in deed to Serax Ranch LTD. recorded in Instrument
  number 1995-70429, Real Property Records, Denton County, Texas;
  THENCE along the common line of said 114.00 acre tract and this
  tract, South 89 degrees 51 minutes 00 seconds East, 938.96 feet to a
  1/2 inch iron rod found at an ell corner of said First tract and a
  reentrant corner of said 114.00 acre tract;
  THENCE North 00 degrees 21 minutes 14 seconds East, 456.75 feet to a
  TXDOT monument found in the new South line of U.S. Highway 380;
  THENCE along said South line, South 71 degrees 55 minutes 00 seconds
  East, 180.29 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 80 degrees 01
  minutes 46 seconds East, 99.99 feet to a TXDOT monument found;
  THENCE continuing along said South line, North 76 degrees 08
  minutes 36 seconds East, 327.87 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 80 degrees 08
  minutes 48 seconds East, 999.73 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 71 degrees 41
  minutes 06 seconds East, 101.07 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 84 degrees 21
  minutes 50 seconds East, 200.57 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 80 degrees 07
  minutes 31 seconds East, 1400.23 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 72 degrees 55
  minutes 42 seconds East, 312.20 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 85 degrees 18
  minutes 17 seconds East, 600.23 feet to a TXDOT monument found;
  THENCE continuing along said South line, North 86 degrees 06
  minutes 47 seconds East, 101.08 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 85 degrees 19
  minutes 44 seconds East, 800.10 feet to a TXDOT monument found;
  THENCE continuing along said South line, South 89 degrees 35
  minutes 24 seconds East, 247.96 feet to a TXDOT monument found;
  THENCE North 05 degrees 59 minutes 08 seconds East, 15.84 feet to a
  capped iron rod set stamped "KAZ";
  THENCE continuing along said South line, South 84 degrees 16
  minutes 38 seconds East, 330.78 feet to a capped iron rod set
  stamped "KAZ";
  THENCE South 42 degrees 40 minutes 33 seconds East, 147.19 feet to a
  capped iron rod set stamped "KAZ" in the West line of F.M. 2622;
  THENCE along said West line, South 00 degrees 04 minutes 34 seconds
  East, 1268.92 feet to a capped iron rod set stamped "KAZ";
  THENCE South 45 degrees 24 minutes 27 seconds West, 70.09 feet to a
  P.K. nail set in the centerline of George Foster Road;
  THENCE along said centerline, North 89 degrees 01 minutes 43
  seconds West, 2458.67 feet to a P.K. nail set;
  THENCE continuing along said centerline, North 89 degrees 21
  minutes 15 seconds West, 2704.05 feet to a 1/2 inch iron rod found;
  THENCE North 00 degrees 02 minutes 51 seconds West, 125.54 feet to a
  1/2 inch iron rod found;
  THENCE continuing along said centerline, part of the way, North 49
  degrees 00 minutes 24 seconds West, 1925.59 feet to the PLACE OF
  BEGINNING and containing 230.43 acres of land more or less;
         This description is based upon an exhibit as prepared by KAZ
  Surveying, dated ________________.  Bearings are based upon the
  West line of the 583.12 acre tract of land.
         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, the
  lieutenant governor, and the 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 are fulfilled
  and accomplished.
         SECTION 4.  (a)  If this Act does not receive a two-thirds
  vote of all the members elected to each house, Subchapter C, Chapter
  7977, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 7977.106 to read as follows:
         Sec. 7977.106.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (b)  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 September 1, 2017.