By: King of Parker (Senate Sponsor - Estes) H.B. No. 2912
         (In the Senate - Received from the House May 5, 2017;
  May 11, 2017, read first time and referred to Committee on
  Intergovernmental Relations; May 17, 2017, reported adversely,
  with favorable Committee Substitute by the following vote:  Yeas 5,
  Nays 0, 1 present not voting; May 17, 2017, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 2912 By:  Campbell
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
 
  relating to the creation of the New Fairview Municipal Utility
  District No. 1; 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 7987 to read as follows:
  CHAPTER 7987.  NEW FAIRVIEW MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7987.001.  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 New Fairview Municipal
  Utility District No. 1.
         Sec. 7987.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7987.003.  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. 7987.004.  CONSENT OF MUNICIPALITY AND DEVELOPMENT
  AGREEMENT REQUIRED. (a)  The temporary directors may not hold an
  election under Section 7987.003, undertake an improvement project,
  impose taxes or fees, or issue bonds or otherwise borrow money until
  each municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located has:
               (1)  consented by ordinance or resolution to the
  creation of the district and to the inclusion of land in the
  district; and
               (2)  entered into a development agreement under Section
  212.172, Local Government Code, with an owner or owners of a
  majority of the land described by Section 2 of the Act enacting this
  chapter.
         (b)  If a development agreement described by Subsection
  (a)(2) has not been executed before March 1, 2019:
               (1)  the temporary directors may not call a
  confirmation election under Section 7987.003;
               (2)  the district is dissolved; and
               (3)  this chapter expires March 1, 2020.
         Sec. 7987.005.  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. 7987.006.  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.
         Sec. 7987.007.  AMENDMENT OF CHAPTER. The legislature may
  not amend this chapter without the consent of the city given by
  ordinance or resolution.
         Sec. 7987.008.  CITY CONSENT TO CREATION OF DISTRICT.  The
  city's consent to the creation of the district is not subject to the
  limitations on the conditions or other restrictions the city may
  place on its consent under Section 42.042, Local Government Code.
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 7987.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7987.052, directors serve
  staggered four-year terms.
         Sec. 7987.052.  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 7987.003; or
               (2)  September 1, 2021.
         (c)  If permanent directors have not been elected under
  Section 7987.003 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 7987.003; 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. 7987.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7987.102.  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. 7987.103.  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. 7987.104.  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. 7987.105.  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.
         Sec. 7987.106.  CITY REQUIREMENTS.  An improvement project
  in the district must comply with applicable requirements of the
  city, including codes and ordinances, unless a requirement is
  specifically waived or superseded by a development agreement
  entered into under Section 7987.107 or another agreement with the
  city applicable to property located in the district.
         Sec. 7987.107.  DEVELOPMENT AND OPERATING AGREEMENT
  REQUIRED. After the district's board is organized, but before the
  district may undertake any improvement project, impose taxes or
  fees, or issue bonds or otherwise borrow money, the district must
  become a party to and assume all applicable obligations,
  requirements, and limitations in the development agreement entered
  into between the city and the owner or owners of a majority of land
  in the district, including any limitation imposed by the city.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 7987.151.  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 7987.153.
         (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. 7987.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7987.151, 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. 7987.153.  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. 7987.201.  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. 7987.202.  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. 7987.203.  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 New Fairview Municipal Utility District No.
  1 initially includes all the territory contained in the following
  area:
         BEING A 634.507 ACRES TRACT OF LAND CALLED OUT OF THE
  T. CARPENTER SURVEY, ABSTRACT NO. 172 AND THE W.
  BRAMLETT SURVEY, ABSTRACT NO. 123, WISE COUNTY, TEXAS:
  BEING ALL OF THOSE CERTAIN TRACTS OF LAND AS DESCRIBED
  IN VOLUME 155, PAGE 580, & VOLUME 123, PAGE 290, DEED
  RECORDS, WISE COUNTY, TEXAS, AND CONTAINING ALL OF
  THOSE CERTAIN TRACTS OF LAND AS DESCRIBED IN CLERK FILE
  NO. 201600522 & CLERK FILE NO. 201600523, OFFICIAL
  RECORDS, WISE COUNTY, TEXAS: BEING FURTHER DESCRIBED
  BY METES AND BOUNDS AS FOLLOWS:
         BEGINNING AT A SET 1/2"IRON ROD WITH PLASTIC CAP IN THE
  EAST LINE OF THE FORT WORTH & DENVER CITY RAILROAD
  RIGHT OF WAY, BEING FIFTY FEET EAST OF & PERPENDICULAR
  TO THE CENTER OF THE EXISTING RAILROAD LINE, AT THE
  NORTHWEST CORNER OF THE THIRD TRACT (V. 123, P. 290),
  SAME BEING THE SOUTHWEST CORNER OF A CALLED 30 ACRES
  TRACT OF LAND DESCRIBED IN VOLUME 5, PAGE 151,
  D.R.W.C.T., FOR THE NORTHWEST AND BEGINNING CORNER OF
  THIS TRACT.
         THENCE ALONG THE SOUTH & EAST LINES OF SAID 30 ACRES AS
  FOLLOWS:
         1) N 89°35'28" E 2484.06 FEET TO A 4" STEEL FENCE CORNER
  POST, FOR AN ELL CORNER OF THIS TRACT.
         2) N 01°02'34" W 533.58 FEET TO A FOUND 1" IRON PIPE AT
  THE SOUTHEAST CORNER OF THAT CALLED 187.08 ACRES AS
  DESCRIBED IN CLERK FILE NO. 201322567, O.R.W.C.T., FOR
  A CORNER OF THIS TRACT.
         3) THENCE N 00°16'14" E 349.12 FEET TO A FOUND 3/8" IRON
  ROD AT THE SOUTHWEST CORNER OF THOSE CERTAIN TRACTS OF
  LAND DESCRIBED IN VOLUME 1643, PAGE 644, O.R.W.C.T.,
  FOR THE NORTHWEST CORNER OF THIS TRACT.
         4) THENCE N 89°40'40" E AT 1203.8 FEET PASS A FOUND 1/2"
  IRON ROD WITH PLASTIC CAP STAMPED "MANNING" AT THE
  NORTHWEST CORNER OF THAT CALLED 34.00 ACRES TRACT OF
  LAND DESCRIBED IN CLERK FILE NO. 201600522,
  O.R.W.C.T., AT 2609.13 FEET PASS A FOUND 3/8" IRON ROD
  IN THE FENCED WEST LINE OF PIONEER STREET, A GRAVEL
  SURFACE, FOR A TOTAL DISTANCE OF 2632.66 FEET TO A
  POINT, FOR THE NORTHEAST CORNER OF THIS TRACT.
         5) THENCE S 00°25'18" E 3975.79 FEET WITHIN SAID
  PIONEER STREET TO A POINT, AT THE NORTHEAST CORNER OF
  THAT CALLED 3.673 ACRES CONVEYED TO BRAZOS ELECTRIC
  POWER COOPERATIVE, INC. IN VOLUME 931, PAGE 495,
  O.R.W.C.T., FOR A CORNER OF THIS TRACT.
         THENCE ALONG THE NORTH, WEST, & SOUTH LINES OF SAID
  BRAZOS ELECTRIC TRACT AS FOLLOWS:
         6) S 89°39'22" W 400.00 FEET TO A FOUND CAPPED 3/4" IRON
  ROD;
         7) S 00°20'10" E 399.94 FEET TO A FOUND CAPPED 3/4" IRON
  ROD;
         8) N 89°39'51" E 400.01 FEET TO A POINT WITHIN SAID
  PIONEER STREET, FOR A CORNER OF THIS TRACT.
         9) THENCE S 00°20'12" E 358.93 FEET WITHIN SAID PIONEER
  STREET TO A FOUND 3/8" IRON ROD IN THE NORTH LINE OF
  THAT CALLED 80 ACRES TRACT OF LAND DESCRIBED IN VOLUME
  1547, PAGE 588, O.R.W.C.T., FOR THE EASTERLY SOUTHEAST
  CORNER OF THIS TRACT.
         THENCE ALONG THE COMMON LINE OF SAID FIFTH TRACT (V.
  123, P. 290) & SAID 80 ACRES TRACT AS FOLLOWS:
         10) S 89°16'40" W 2595.51 FEET TO A FOUND 3/8" IRON ROD;
         11) S 00°41'22" E 1800.91 FEET TO A POINT WITHIN PIONEER
  STREET, AN ASPHALT SURFACE, AT THE SOUTHEAST CORNER OF
  THAT CALLED 22.00 ACRES TRACT OF LAND DESCRIBED IN
  CLERK FILE NO. 201600523, O.R.W.C.T., FOR THE
  SOUTHERLY SOUTHEAST CORNER OF THIS TRACT.
         12) THENCE N 89°57'00" W WITHIN SAID PIONEER STREET AT
  772.70 FEET PASS A FOUND P.K. NAIL IN ASPHALT AT THE
  SOUTHWEST CORNER OF SAID 22.00 ACRES, FOR A TOTAL
  DISTANCE OF 2919.89 FEET TO A POINT IN THE SIMPLE CURVE
  OF A SPIRAL CURVE, BEING THE EAST LINE OF SAID FORT
  WORTH & DENVER CITY RAILROAD RIGHT OF WAY, FOR THE
  SOUTHWEST CORNER OF THIS TRACT. WHENCE A FOUND PK NAIL
  BEARS S 89°57'00" E 1.58 FEET.
         THENCE FIFTY FEET EAST OF & PERPENDICULAR TO THE CENTER
  OF THE EXISTING RAILROAD LINE AS FOLLOWS:
         SC1) ALONG THE ARC OF A SIMPLE CURVE TO THE RIGHT,
  HAVING A RADIUS OF 2873.39 FEET, AN ARC LENGTH OF
  195.21 FEET, AND WHOSE CHORD BEARS N 01°50'09" W 195.17
  FEET TO A SET 1/2" IRON ROD WITH PLASTIC CAP AT THE
  CURVE TO SPIRAL, A CHORD BEARS N 02°35'55" E 376.69 FEET
  TO THE SPIRAL TO TANGENT;
         13) N 03°50'04" E 5090.43 FEET TO THE POINT OF
  BEGINNING.
         BEARINGS & DISTANCES DERIVED FROM G.P.S. OBSERVATIONS
  PERFORMED BY CARTER SURVEYING & MAPPING, INC. AND
  REFLECT SURFACE ADJUSTED, N.A.D. 1983, TEXAS STATE
  PLANE COORDINATE SYSTEM, NORTH CENTRAL ZONE 4202,
  USING TEXAS DEPARTMENT OF TRANSPORTATION SURFACE
  ADJUSTMENT FACTOR OF 1.00012.
         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
  7987, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 7987.108 to read as follows:
         Sec. 7987.108.  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.
 
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