Bill Text: TX HB4763 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the creation of the Spradley Farms Improvement District of Kaufman County; providing the authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-05-24 - Recommendations filed with the Speaker [HB4763 Detail]

Download: Texas-2019-HB4763-Introduced.html

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86R24100 JXC-F
By: Rose H.B. No. 4763

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Spradley Farms Improvement District
of Kaufman County; providing the 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 X, Title 6, Special District Local Laws
Code, is amended by adding Chapter 11014 to read as follows:
CHAPTER 11014. SPRADLEY FARMS IMPROVEMENT DISTRICT OF KAUFMAN
COUNTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 11014.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Mesquite.
(3) "County" means Kaufman County.
(4) "Director" means a board member.
(5) "District" means the Spradley Farms Improvement
District of Kaufman County.
Sec. 11014.0102. NATURE OF DISTRICT. The district is a
special district created under Section 59, Article XVI, Texas
Constitution.
Sec. 11014.0103. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing the city, the
county, 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 and to accomplish the redevelopment of land
in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or the county 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 the city or county
services provided in the district.
Sec. 11014.0104. 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.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation.
(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;
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways, parking facilities, and
conduit facilities and by landscaping and developing certain areas
in the district, which are necessary for the restoration,
preservation, and enhancement of scenic beauty; and
(4) provide for road, bridge, and recreational
facilities for the district.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street or road and are considered to be a
street or road improvement.
(f) The district may not provide, conduct, or authorize any
improvement project on the city streets, highways, rights-of-way,
or easements without the consent of the governing body of the city.
(g) Subject to any agreement between the district and the
city, the city may:
(1) by ordinance, order, or resolution require that
title to all or any portion of an improvement project vest in the
city; or
(2) by ordinance, order, or resolution or other
directive authorize the district to own, encumber, maintain, and
operate an improvement project, subject to the right of the city to
order a conveyance of the project to the city on a date determined
by the city.
(h) The district shall immediately comply with any city
ordinance, order, or resolution adopted under Subsection (g).
(i) For the purposes of this section, planning, design,
construction, improvement, and maintenance of a lake includes work
done for drainage, reclamation, or recreation.
(j) 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. 11014.0105. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to enter into contracts and to issue any type
of bonds for the purposes for which the district is created or to
pay the principal of and interest on bonds or obligations pursuant
to a contract;
(3) right to impose or collect an assessment or taxes
or any other revenue; or
(4) legality or operation.
Sec. 11014.0106. 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 the
city under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
city under Chapter 312, Tax Code; or
(3) an enterprise zone created by the city under
Chapter 2303, Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city 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, and the district may
pledge the money as security for any bonds issued by the district
for an improvement project.
(c) A tax increment reinvestment zone created by the city
that includes all or any part of the area of the district is not
subject to the limitations provided by Section 311.006(a)(2)(A),
Tax Code. Taxable real property in a reinvestment zone in the
district is not included in the city's compliance with Section
311.006(a)(2), Tax Code, for any other reinvestment zone created by
the city.
Sec. 11014.0107. CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Sec. 11014.0108. CONSENT OF CITY REQUIRED. (a) Except as
provided in Subsection (c), before the district may exercise any
powers under this chapter:
(1) the city must adopt an ordinance or resolution
consenting to the creation of the district and to the inclusion of
land in the district; and
(2) the district and the city must negotiate and
execute a mutually approved and accepted financing and operating
agreement authorizing and setting forth limitations on the issuance
of bonds by the district and regarding the development plans and
rules for the development and operation of the district and
financing of improvement projects and services.
(b) This chapter expires December 31, 2021, if the financing
and operating agreement is not executed by the district and the city
before that date.
(c) The board has the powers necessary, convenient, or
desirable to negotiate and execute a mutually approved and accepted
financing and operating agreement.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 11014.0201. 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 on June 1 of
each even-numbered year.
Sec. 11014.0202. APPOINTMENT OF DIRECTORS. (a) The board
shall recommend to the governing body of the city persons to serve
on the succeeding board.
(b) After reviewing the recommendations, the governing body
of the city shall approve or disapprove the directors recommended
by the board. A person is appointed if a majority of members of the
governing body of the city approve that person.
Sec. 11014.0203. VACANCY. (a) The governing body of the
city shall fill a vacancy on the board of directors for the
remainder of the unexpired term in the same manner described by
Section 11014.0202.
(b) If at any time there are fewer than three directors, the
governing body of the city shall appoint the necessary number of
directors who meet the qualifications prescribed by Section
11014.0204 to fill all board vacancies.
Sec. 11014.0204. ELIGIBILITY. To be qualified to serve as a
director, a person must be at least 18 years old and:
(1) a resident of the district;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that
owns property in the district; or
(5) an agent, employee, or tenant of a person covered
by Subdivision (2), (3), or (4).
Sec. 11014.0205. QUORUM. (a) For purposes of determining
the requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including
death, resignation, or disqualification; or
(2) a director who is abstaining from participation in
a vote because of a conflict of interest.
(b) A concurrence of a majority of a quorum of directors is
required for an official action at a meeting of the board.
Sec. 11014.0206. OFFICERS. The board shall elect from
among the directors a chair, a vice chair, a secretary, and an
assistant secretary.
Sec. 11014.0207. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code.
Sec. 11014.0208. INITIAL DIRECTORS. (a) The initial board
includes:
Pos. No. Name of Director
1 Hank Swayze
2 Hunter Graham
3 Don A. Duke
4 Arianne Bielstein
5 Robert D. Gerlach
(b) Of the initial directors, the terms of directors
appointed for positions 1 through 3 expire June 1, 2020, and the
terms of directors appointed for positions 4 and 5 expire June 1,
2022.
(c) This section expires September 1, 2022.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 11014.0301. GENERAL POWERS AND DUTIES. (a) The
district has the powers and duties necessary to accomplish the
purposes for which the district is created.
(b) The district has the powers and duties provided by:
(1) the general laws relating to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code;
(2) the general laws relating to road districts and
road utility districts created under Section 52(b), Article III,
Texas Constitution, including Chapters 257 and 441, Transportation
Code; and
(3) the general laws relating to municipal management
districts created under Sections 52 and 52-a, Article III, and
Section 59, Article XVI, Texas Constitution, including Chapter 375,
Local Government Code.
(c) Sections 49.216 and 49.351, Water Code, do not apply to
the district.
Sec. 11014.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
The district, using any money available to the district for the
purpose, may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service authorized under this chapter or Chapter 375, Local
Government Code.
(b) The district may contract with a governmental or private
entity to carry out an action under Subsection (a).
Sec. 11014.0303. 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. 11014.0304. 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. 11014.0305. 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. 11014.0306. CONDUIT FACILITIES. (a) The district may
finance, acquire, construct, improve, operate, maintain, or charge
a fee for the use of conduits for:
(1) fiber-optic cable and supporting facilities;
(2) electronic transmission and distribution lines
and supporting facilities; or
(3) other types of transmission and distribution lines
and supporting facilities.
(b) The district may not require a person to use a district
conduit for a purpose described by Subsection (a)(1) or another
telecommunications purpose.
Sec. 11014.0307. GENERAL POWERS REGARDING CONTRACTS. (a)
The district may:
(1) contract with any person to accomplish any
district purpose, including a contract for:
(A) 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; or
(B) the use, occupancy, lease, rental,
operation, maintenance, or management of all or part of a proposed
or existing improvement project; and
(2) 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.
(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 a negotiable or nonnegotiable note or
warrant payable to the city, the county, or any other person.
(c) Any person may contract with the district to carry out
the purposes of this chapter without further statutory or other
authorization.
(d) A contract payable from ad valorem taxes for a period
longer than one year must be approved by the governing body of the
city.
Sec. 11014.0308. RULES; ENFORCEMENT. (a) The district may
adopt rules:
(1) to administer or operate the district;
(2) for the use, enjoyment, availability, protection,
security, and maintenance of the district's property and
facilities; or
(3) to provide for public safety and security in the
district.
(b) The district may enforce its rules by injunctive relief.
(c) To the extent a district rule, including a rule adopted
under Section 11014.0310, conflicts with a city code, ordinance, or
regulation, the more restrictive provision controls.
Sec. 11014.0309. NAME CHANGE. The board by resolution may
change the district's name on approval by the Texas Commission on
Environmental Quality. The board shall give written notice of the
change to the city.
Sec. 11014.0310. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA
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. The board may
charge a fee for the permit application or for public safety or
security services in an amount determined by the board.
(c) The board may require a permit or franchise agreement
with a vendor, concessionaire, exhibitor, or similar private or
commercial person or organization for the limited use of the area or
facility on terms and on payment of a permit or franchise fee the
board may impose.
Sec. 11014.0311. ADDING OR REMOVING TERRITORY. The board
may add or remove territory under Subchapter J, Chapter 49, and
Section 54.016, Water Code, except that:
(1) the addition or removal of the territory must be
approved by:
(A) the governing body of the city; 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 on the territory are outstanding.
Sec. 11014.0312. 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. 11014.0313. APPROVAL BY THE CITY. (a) The district
must obtain the approval of the city for:
(1) the plans and specifications of an improvement
project financed by bonds, notes, or other obligations; and
(2) the plans and specifications of an improvement
project related to the use of land owned by the city, an easement
granted by the city, or a right-of-way of a street, road, or
highway.
(b) City approval required under this section may be by an
administrative process that does not involve the city's governing
body, unless approval of the city's governing body is required by
federal, state, or local law, ordinance, or regulation.
(c) Sections 375.207(a) and (b), Local Government Code, do
not apply to the district.
Sec. 11014.0314. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 11014.0315. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 11014.0401. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 11014.0402. 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. 11014.0403. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property. The
lien runs with the land and that portion of an assessment payment
that has not yet come due is not eliminated by foreclosure of an ad
valorem tax lien.
(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.
(e) Assessments may bear interest at a rate specified by the
board that may not exceed the interest rate permitted by Chapter
1204, Government Code.
Sec. 11014.0404. TAX AND ASSESSMENT ABATEMENTS. The
district may grant abatements of a district tax or assessment on
property in the district.
Sec. 11014.0405. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to an assessment
imposed by the district.
Sec. 11014.0406. GOVERNMENTAL ENTITIES; ASSESSMENTS. (a)
Property owned by a municipality, county, or other political
subdivision is exempt from the payment of assessments levied under
this chapter.
(b) Section 375.162, Local Government Code, does not apply
to the district.
Sec. 11014.0407. GENERAL POWERS REGARDING FINANCIAL
MATTERS. (a) The district may:
(1) impose an ad valorem tax on all taxable property in
the district, including industrial, commercial, and residential
property, to pay for an improvement project;
(2) in addition to the authority granted to the
district under Section 11014.0403, impose an assessment on property
in the district in the manner provided for:
(A) a district under Subchapters A, E, and F,
Chapter 375, Local Government Code; or
(B) a municipality or county under Subchapter A,
Chapter 372, Local Government Code;
(3) provide or secure the payment or repayment of the
costs and expenses of the establishment, administration, and
operation of the district and the district's costs or share of the
costs or revenue of an improvement project or district contractual
obligation or debt by or through:
(A) a lease, installment purchase contract, or
other agreement with any person;
(B) the imposition of a tax, assessment, user
fee, concession fee, or rental charge; or
(C) any other revenue or resources of the
district;
(4) establish user charges for the use of nonpotable
water for irrigation purposes, subject to the approval of the
governing body of the city;
(5) undertake separately or jointly with other
persons, including the city or the county, all or part of the cost
of an improvement project, including an improvement project:
(A) for improving, enhancing, and supporting
public safety and security, fire protection and emergency medical
services, and law enforcement in and adjacent to the district,
subject to approval by the city; or
(B) that confers a general benefit on the entire
district or a special benefit on a definable part of the district;
and
(6) enter into a tax abatement agreement in accordance
with the general laws of this state authorizing and applicable to
tax abatement agreements by municipalities.
(b) Section 375.141, Local Government Code, does not apply
to the district. The district may not adopt and enforce an impact
fee described by Section 49.212(d), Water Code.
SUBCHAPTER E. TAXES AND BONDS
Sec. 11014.0501. ELECTIONS REGARDING TAXES AND BONDS. (a)
The district may issue, without an election, bonds, notes, and
other obligations secured by:
(1) revenue other than ad valorem taxes, including
assessment revenues; or
(2) contract payments described by Section
11014.0504.
(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.
(c) Section 375.243, Local Government Code, does not apply
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. 11014.0502. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held for that purpose, the district may impose an
operation and maintenance tax on taxable property in the district
in accordance with Section 49.107, Water Code, for any district
purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The district may not impose a maintenance and operation
tax unless the maximum tax rate is approved by the governing body of
the city and a majority of the district voters voting at an election
held for that purpose. If the maximum tax rate is approved, the
board may impose the tax at any rate that does not exceed the
approved rate.
(c) A maintenance and operation tax election may be held at
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.
(d) The proposition in a maintenance and operation tax
election may be for a specific maximum rate or for an unlimited
rate.
Sec. 11014.0503. USE OF SURPLUS MAINTENANCE AND OPERATION
MONEY. If the district has surplus 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. 11014.0504. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a 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.
Sec. 11014.0505. AUTHORITY TO BORROW MONEY AND TO ISSUE
OBLIGATIONS. (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, by competitive sale or negotiated sale,
may issue bonds, notes, or other obligations payable wholly or
partly from ad valorem taxes, assessments, revenue, contract
payments, grants, or other district money, including money received
under Section 11014.0106, or any combination of those sources of
money, to pay for any authorized district purpose or improvement
project, including for refunding bonds.
(c) Bonds issued under this section may contain a pledge of
assessment revenues from multiple assessments levied by the
district for similar improvements on different phases of
development within the district, and those assessments may be
levied at different times.
(d) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
Sec. 11014.0506. 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, for each
year that all or part of the bonds are outstanding as required and
in the manner provided by Sections 54.601 and 54.602, Water Code.
Sec. 11014.0507. 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.
Sec. 11014.0508. AUTHORIZED INVESTMENTS; SECURITY. (a)
Bonds issued under this chapter are legal and authorized
investments for:
(1) banks, trust companies, and savings and loan
associations;
(2) all insurance companies;
(3) fiduciaries, trustees, and guardians; and
(4) interest funds, sinking funds, and other public
funds of the state or of an agency, subdivision, or instrumentality
of the state, including a county, municipality, school district, or
other district, public agency, or body politic.
(b) Bonds issued under this chapter may be security for
deposits of public funds of the state or of an agency, subdivision,
or instrumentality of the state, including a county, municipality,
school district, or other district, public agency, or body politic,
to the extent of the market value of the bonds, if accompanied by
any appurtenant unmatured interest coupons.
SUBCHAPTER I. DISSOLUTION AND DIVISION OF DISTRICT
Sec. 11014.0901. DISSOLUTION BY BOARD OR PETITION. (a)
Except as provided by Subsection (b), the board:
(1) may dissolve the district on its own motion; and
(2) shall dissolve the district on receipt of a
written petition requesting dissolution signed by the owners of at
least 75 percent of the acreage of real property in the district.
(b) The board may not dissolve the district until the
district's outstanding debt and contractual obligations have been
repaid or discharged.
(c) After the board dissolves the district, the board shall
transfer ownership of all district property and assets to the city.
Sec. 11014.0902. DISSOLUTION BY CITY ORDINANCE. (a) The
city by ordinance may dissolve the district.
(b) On dissolution, the city shall succeed to all of the
district's outstanding debt and contractual obligations.
Sec. 11014.0903. COLLECTION OF ASSESSMENTS AND OTHER
REVENUE. (a) If the dissolved district has bonds or other
obligations outstanding secured by and payable from assessments or
other revenue, other than ad valorem taxes, the city shall succeed
to the rights and obligations of the dissolved district regarding
enforcement and collection of the assessments or other revenue.
(b) The city shall have and exercise all district powers to
enforce and collect the assessments or other revenue to pay:
(1) the bonds or other obligations when due and
payable according to their terms; or
(2) special revenue or assessment bonds or other
obligations issued by the city to refund the outstanding bonds or
obligations.
Sec. 11014.0904. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
After the city dissolves the district, the city assumes the
obligations of the dissolved district, including any bonds or other
debt payable from assessments or other district revenue.
(b) If the city dissolves the district, the board shall
transfer ownership of all district property and assets of the
dissolved district to the city, and the city succeeds to the
property and assets.
Sec. 11014.0905. DIVISION OF DISTRICT; PREREQUISITES. The
district may be divided into two or more new districts only if the
district has never issued any obligations secured by ad valorem
taxes.
Sec. 11014.0906. LAW APPLICABLE TO NEW DISTRICT. This
chapter applies to any new district created by the division of the
district. A new district has all the powers and duties of the
district and may be dissolved in the manner provided for the
district.
Sec. 11014.0907. LIMITATION ON AREA OF NEW DISTRICT. The
territory of a new district created by the division of the district
must include at least 100 acres. A new district created by the
division of the district may not, at the time the new district is
created, contain any land outside the area described by Section 2 of
the Act enacting this chapter.
Sec. 11014.0908. DIVISION PROCEDURES. (a) The board, on
its own motion or on receipt of a petition signed by the owner or
owners of a majority of the assessed value of the real property in
the district, may adopt an order dividing the district.
(b) An order dividing the district must:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) name each person to serve on the initial board of
directors of each new district; and
(4) provide for the division of assets and liabilities
between the new districts, including a plan for the payment or
performance of any outstanding district obligations.
(c) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the Texas Commission on Environmental Quality and record the
order in the real property records of each county in which the
district is located.
Sec. 11014.0909. TAX OR BOND ELECTION. Before a new
district created by the division of the district may impose an
operation and maintenance tax or issue bonds payable wholly or
partly from ad valorem taxes, the new district must hold an election
as required by this chapter to obtain voter approval.
Sec. 11014.0910. CITY CONSENT. (a) The board may not adopt
an order dividing the district unless the division and appointment
of the initial directors for each new district have been approved by
the governing body of the city by resolution or ordinance. The city
resolution or ordinance may set conditions for the division of the
district.
(b) A new district created by division of the district is
subject to the resolution or ordinance consenting to the creation
of the district and the new district. Except as provided by
Subsection (c), before a new district may exercise any powers under
this chapter, the new district must enter into a joinder to the
financing and operating agreement with the city.
(c) A new district created by the division of the district
has the powers necessary, convenient, or desirable to carry out and
effect the purpose of this section, including organization of its
board and approval and execution of a joinder to the financing and
operating agreement with the city.
SECTION 2. The Spradley Farms Improvement District of
Kaufman County initially includes all the territory contained in
the following area:
TRACT 1
Being a 613.573 acre tract of land situated in the Martha Musick
Survey, Abstract No.312, Kaufman County, Texas, and being all of
the described tracts of land conveyed by deed to Spradley/Forney
Development, LTD., as recorded in Volume 1915, Page 215, Deed
Records, Kaufman County, Texas, and being more particularly
described as follows:
BEGINNING at a found 3/8 inch iron rod, said point being the
southwest corner of said Spradley/Forney tract, and the northwest
corner of a tract of land conveyed to Heartland First Baptist
Church, as recorded in Volume 3120, Page 471, Deed Records, Kaufman
County, Texas, and being in the existing east right-of-way line of
F.M. Road No. 2757 (a 100 foot Right-of-way);
THENCE North 45°12'17" West, along said existing east right-of-way
line, a distance of 3200.34 feet to a point for corner;
THENCE North 45°48'19" West, continuing along said existing east
right-of-way line, a distance of 2152.36 feet to a found concrete
monument for corner;
THENCE North 37°07'32" West, a distance of 101.59 feet to a found 3/8
inch iron rod for corner;
THENCE North 45°48'19" West, a distance of 94.96 feet to a point for
corner, said point being the southeast corner of a tract of land
conveyed by deed to Donald G, Jr and Leasa K. Davis, as recorded in
Volume 3471, Page 60, Deed Records, Kaufman County, Texas;
THENCE North 12°57'53" East, along the east line of said Davis
tract, a distance of 1211.80 feet to a point for corner;
THENCE North 44°17'49" East, leaving said east line, a distance of
1211.38 feet to a point for corner, said point being in the existing
south right-of-way line of State Highway I-20 (a variable width
right-of-way line)
THENCE South 83°33'01" East, along said existing south right-of-way
line, a distance of 2163.89 feet to a point for corner, said point
being the northwest corner of a tract of land conveyed by deed to
I-20 Mesquite Limited Partnership, as recorded in Volume 3072, Page
537, Deed Records, Kaufman County, Texas;
THENCE South 45°47'24" East, leaving said existing south
right-of-way line, a distance of 1653.63 feet to a point for corner;
THENCE North 44°01'19" East, a distance of 1275.56 feet to a point
for corner, said point being in the existing south right-of-way
line of said State Highway I-20;
THENCE South 49°15'08" East, along said existing south right-of-way
line, a distance of 30.13 feet to a point for corner;
THENCE North 63°09'15" East, continuing along said existing south
right-of-way line, a distance of 125.17 feet to a point for corner;
THENCE South 89°55'49" East, a distance of 174.62 feet to a point for
corner;
THENCE North 85°19'44" East, a distance of 1321.76 feet to a point
for corner;
THENCE North 83°01'46" East, a distance of 386.92 feet to a point for
corner, said point being the northwest corner of a tract of land
conveyed by deed to Hubert C. Jr White and Pamela Sue Ray, as
recorded in Volume 342, Page 585, Deed Records, Kaufman County,
Texas;
THENCE South 07°49'06" East, leaving said existing south
right-of-way line, and along the west line of said White tract, a
distance of 1539.16 feet to a point for corner, said point being the
northeast corner of a tract of land conveyed by deed to Maryfield,
LTD, as recorded in Volume 5835, Page 580, Deed Records, Kaufman
County, Texas;
THENCE South 43°07'16" West, leaving said west line, and along the
north line of said Maryfield tract, a distance of 406.47 feet to a
point for corner;
THENCE South 39°47'32" East, continuing along said north line, a
distance of 29.09 feet to a point for corner;
THENCE South 42°47'25" West, a distance of 349.18 feet to a point for
corner, said point being the northwest corner of said Maryfield
tract, and the northwest corner of a tract of land conveyed by deed
to Hannover Estates, LTD, as recorded in Volume 5835, Page 570, Deed
Records, Kaufman County, Texas;
THENCE South 11°17'46" East, leaving said north line, and along the
west line of said Hannover tract, a distance of 362.66 feet to a
point for corner, said point being the northeast corner of a tract
of land conveyed by deed to David R. and Winona Littlefield, as
recorded in Volume 1190, Page 528, Deed Records, Kaufman County,
Texas;
THENCE South 67°38'08" West, leaving said west line and along the
north line of said Littlefield tract, a distance of 401.86 feet to a
point for corner;
THENCE South 22°18'56" East, leaving said north line, and along the
west line of said Littlefield tract, a distance of 387.16 feet to a
point for corner;
THENCE South 13°40'49" West, continuing along said west line, a
distance of 85.16 feet to a point for corner, said point being the
northeast corner of a tract of land conveyed by deed to Future
Telecom, Inc., as recorded in Volume 3611, Page 280, Deed Records,
Kaufman County, Texas;
THENCE South 52°38'20" West, leaving said west line, and along the
north line of said Future Telecom tract, a distance of 86.93 feet to
a point for corner;
THENCE South 67°42'13" West, continuing along said north line, a
distance of 190.04 feet to a point for corner;
THENCE South 76°53'07" West, a distance of 152.17 feet to a point for
corner;
THENCE South 88°39'24" West, a distance of 155.78 feet to a point for
corner;
THENCE South 43°55'47" West, a distance of 2284.40 feet to a point
for corner, said point being in the north line of a tract of land
conveyed by deed to Keith and Gina Barron, as recorded in Volume
1167, Page 930, Deed Records, Kaufman County, Texas;
THENCE South 45°15'29" West, a distance of 1143.49 feet to the POINT
OF BEGINNING and CONTAINING 26,727,249 square feet, 613.573 acres
of land, more or less.
TRACT 2
Being a 8.425 acre tract of land situated in the Martha Musick
Survey, Abstract No.312, Kaufman County, Texas, and being all of
the described tracts of land conveyed by deed to Spradley/Forney
Development, LTD., as recorded in Volume 1915, Page 215, Deed
Records, Kaufman County, Texas, and being more particularly
described as follows:
COMMENCING at a found 1/2 inch iron rod, said point being the
southwest corner of Lot 14, and the southeast corner of Lot 13, Lone
Star Estates Addition, an addition the City of Forney, as recorded
in Volume 2, Page 516, Plat Records, Kaufman County, Texas, and
being in the existing north right-of-way line of State Highway I-20
(a variable width right-of-way)
THENCE North 83°17'41" West, along the south line of said Lot 13, and
the existing north right-of-way line, a distance of 102.37 feet to a
point for the POINT OF BEGINNING;
THENCE North 83°31'34" West, leaving said south line, and continuing
along said existing north right-of-way line, a distance of 1232.22
feet to a point for corner, said point being the most southerly
southeast corner of a tract of land conveyed by deed to Beam and
Sons, Inc, as recorded in Volume 839, Page 241, Deed Records,
Kaufman County, Texas;
THENCE North 44°17'49" East, leaving said existing north
right-of-way line, and along the east line of said Beam and Sons
tract, a distance of 754.15 feet to a point for corner, said point
being in the west line of said Lone Star Estates Addition;
THENCE South 45°47'24" East, leaving said east line, and along said
west line, a distance of 973.34 feet to the POINT OF BEGINNING and
CONTAINING 367,022 square feet, 8.425 acres of land, more or less.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act have been
fulfilled and accomplished.
SECTION 4. 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, 2019.