SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3986.  NORTH CELINA MUNICIPAL MANAGEMENT DISTRICT NO. 3

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 3986.0101.  DEFINITIONS.  In this chapter:
(1)  "Board" means the district's board of directors.
(2)  "City" means the City of Celina.
(3)  "Director" means a board member.
(4)  "District" means the North Celina Municipal Management District No. 3.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0102.  NATURE OF DISTRICT.  The North Celina Municipal Management District No. 3 is a special district created under Section 59, Article XVI, Texas Constitution.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0103.  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.
(b)  By creating the district and in authorizing the city 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.
(c)  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.
(d)  This chapter and the creation of the district may not be interpreted to relieve the city 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 city services provided in the district.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  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.
(b)  The district is created to serve a public use and benefit.
(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 and commerce.
(d)  The district will:
(1)  promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public;
(2)  provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a community and business center;
(3)  promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty; and
(4)  provide for the construction of water, wastewater, drainage, road, 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 and are considered to be a street or road improvement.
(f)  The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests as well as the public.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0105.  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 issue any type of bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds;
(3)  right to impose or collect an assessment or tax; or
(4)  legality or operation.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0106.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.  All or any part of the area of the district is eligible to be included in:
(1)  a tax increment reinvestment zone created under Chapter 311, Tax Code; or
(2)  a tax abatement reinvestment zone created under Chapter 312, Tax Code.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW.  Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0108.  CONSTRUCTION OF CHAPTER.  This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0109.  COMPLIANCE WITH AND ENFORCEABILITY OF MUNICIPAL CONSENT AGREEMENT, ORDINANCE, OR RESOLUTION.  (a)  The district shall comply with all applicable requirements of any ordinance or resolution that consents to the creation of the district or to the inclusion of land in the district.
(b)  Any agreement between the district and a municipality related to the municipality's consent to the creation of the district, including a development agreement, is valid and enforceable.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



SUBCHAPTER B.  BOARD OF DIRECTORS

Sec. 3986.0201.  GOVERNING BODY; TERMS.  (a)  The district is governed by a board of five directors who serve staggered terms of four years.
(b)  Four directors must be elected in the manner provided by Subchapter D, Chapter 49, Water Code.
(c)  One director must be appointed by the governing body of the city from a list of persons recommended by the preceding board.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0202.  COMPENSATION; EXPENSES.  (a)  The district may compensate each elected director in an amount not to exceed $150 for each board meeting.  The total amount of compensation for each director in one year may not exceed $7,200.
(b)  An appointed director is not entitled to compensation for service on the board.
(c)  An elected or appointed director is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of the board.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0203.  INITIAL DIRECTORS.  (a)  The initial board consists of the following directors:
Pos. No.Name of Director
1John Peavy
2Charles Taylor
3Steve Cook
4Paul Schlosberg
5Russell Miller
(b)  Of the initial directors, the terms of directors appointed for positions one through three expire June 1, 2021, and the terms of directors appointed for positions four and five expire June 1, 2023.  The initial directors in positions one through four are replaced by directors elected under Section 3986.0201(b), and the initial director in position five is replaced by a director appointed under Section 3986.0201(c).


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



SUBCHAPTER C.  POWERS AND DUTIES

Sec. 3986.0301.  GENERAL POWERS AND DUTIES.  The district has the powers and duties necessary to accomplish the purposes for which the district is created.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0302.  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). 
(c)  The implementation of a district project or service is a governmental function or service for the purposes of Chapter 791, Government Code.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0303.  NONPROFIT CORPORATION.  (a)  The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter.
(b)  The nonprofit corporation:
(1)  has each power of and is considered to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and
(2)  may implement any project and provide any service authorized by this chapter.
(c)  The board shall appoint the board of directors of the nonprofit corporation.  The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code, except that a board member is not required to reside in the district.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0304.  LAW ENFORCEMENT SERVICES.  To protect the public interest, the district may contract with a qualified party, including the city, to provide law enforcement services in the district for a fee.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0305.  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.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0306.  ECONOMIC DEVELOPMENT PROGRAMS.  (a)  The district may engage in activities that accomplish the economic development purposes of the district.
(b)  The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to:
(1)  make loans and grants of public money; and
(2)  provide district personnel and services.
(c)  The district may create economic development programs and exercise the economic development powers provided to municipalities by:
(1)  Chapter 380, Local Government Code; and
(2)  Subchapter A, Chapter 1509, Government Code.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0307.  PARKING FACILITIES.  (a)  The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets and related appurtenances.
(b)  The district's parking facilities serve the public purposes of the district and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years.
(c)  The district's parking facilities are parts of and necessary components of a street and are considered to be a street or road improvement.
(d)  The development and operation of the district's parking facilities may be considered an economic development program.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0308.  ADDING OR EXCLUDING LAND.  If the governing body of the city approves an addition or exclusion of land by affirmative vote, the district may add or exclude the land in the manner provided by Subchapter J, Chapter 49, Water Code, or by Subchapter H, Chapter 54, Water Code.  The district may add land only if the land is located in the city's corporate limits.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0309.  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.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0310.  DIVISION OF DISTRICT.  (a)  The district may be divided into two or more new districts only if:
(1)  the district has no outstanding bonded debt;
(2)  the district is not imposing ad valorem taxes; and
(3)  not more than four new districts are created by the division.
(b)  This chapter applies to any new district created by the division of the district, and a new district has all the powers and duties of the district.
(c)  Any 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.
(d)  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.
(e)  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)  appoint initial directors for each new district; and
(4)  provide for the division of assets and liabilities between or among the new districts.
(f)  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 commission and record the order in the real property records of each county in which the district is located.
(g)  Municipal consent to the creation of the district and to the inclusion of land in the district acts as municipal consent to the creation of any new district created by the division of the district and to the inclusion of land in the new district.
(h)  A new district created by the division of the district must hold an election as required by Section 3986.0501 to obtain voter approval before the district may impose a maintenance tax or issue bonds payable wholly or partly from ad valorem taxes.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0311.  RESIDENTIAL PROPERTY NOT EXEMPT FROM CERTAIN REQUIREMENTS.  Sections 375.161 and 375.164, Local Government Code, do not apply to the district.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0312.  NO EMINENT DOMAIN POWER.  The district may not exercise the power of eminent domain.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



SUBCHAPTER D.  ASSESSMENTS

Sec. 3986.0401.  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.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0402.  ASSESSMENTS; LIENS FOR ASSESSMENTS.  (a)  Except as provided by Section 3986.0504(b), 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.
(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.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



SUBCHAPTER E.  TAXES AND BONDS

Sec. 3986.0501.  TAX ELECTION REQUIRED.  The district must hold an election in the manner provided by Chapter 49, Water Code, or, if applicable, Chapter 375, Local Government Code, to obtain voter approval before the district may impose an ad valorem tax.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0502.  TAX LIMITATION.  An ad valorem tax imposed by the district may be used only for a purpose authorized under:
(1)  Chapter 49 or 54, Water Code;
(2)  Section 52, Article III, Texas Constitution; or
(3)  Section 59, Article XVI, Texas Constitution.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0503.  OPERATION AND MAINTENANCE TAX.  (a)  If authorized by a majority of the district voters voting at an election under Section 3986.0501, the district may impose an operation and maintenance tax on taxable property in the district in the manner provided by Section 49.107, Water Code.
(b)  The board shall determine the operation and maintenance tax rate.  The rate may not exceed the rate approved at the election.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0504.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND OTHER OBLIGATIONS.  (a)  The district may borrow money on terms determined by the board.
(b)  The district may issue bonds, notes, or other obligations payable wholly or partly from:
(1)  impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources of money, to pay for any authorized district purpose;
(2)  ad valorem taxes for a purpose authorized under Section 3986.0502; and
(3)  assessments only to finance a major public infrastructure improvement project that serves a majority of the district.
(c)  The district may issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from assessments in the manner provided by Subchapter A, Chapter 372, Local Government Code, if the improvement financed by an obligation issued under this section will be conveyed to or operated and maintained by a municipality or other retail utility provider pursuant to an agreement with the district entered into before the issuance of the obligation.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0505.  BONDS SECURED BY REVENUE OR CONTRACT PAYMENTS.  The district may issue, without an election, bonds secured by:
(1)  revenue other than ad valorem taxes, including contract revenues; or
(2)  contract payments, provided that the requirements of Section 49.108, Water Code, have been met.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0506.  BONDS SECURED BY AD VALOREM TAXES; ELECTIONS.  (a)  If authorized at an election under Section 3986.0501, the district may issue bonds payable from ad valorem taxes.
(b)  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 annual 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.
(c)  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.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



Sec. 3986.0507.  CONSENT OF MUNICIPALITY REQUIRED.  (a)  The board may not issue bonds 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.
(b)  This section applies only to the district's first issuance of bonds payable from ad valorem taxes.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.



SUBCHAPTER I.  DISSOLUTION

Sec. 3986.0901.  DISSOLUTION.  (a)  Except as limited by Subsection (b), the board shall dissolve the district on written petition filed with the board by the owners of:
(1)  66 percent or more of the assessed value of the property subject to assessment by the district based on the most recent certified county property tax rolls; or
(2)  66 percent or more of the surface area of the district, excluding roads, streets, highways, utility rights-of-way, other public areas, and other property exempt from assessment by the district according to the most recent certified county property tax rolls.
(b)  The district may not be dissolved if the district:
(1)  has any outstanding bonded or other indebtedness until that bonded or other indebtedness has been repaid or defeased in accordance with the order or resolution authorizing the issuance of the bonded or other indebtedness;
(2)  has a contractual obligation to pay money until:
(A)  that obligation has been fully paid in accordance with the contract; or
(B)  another political subdivision assumes the obligation; or
(3)  owns, operates, or maintains public works, facilities, or improvements unless, before the district dissolves, the district contracts with another party for the ownership and operation or maintenance of the public works, facilities, or improvements.
(c)  Section 375.262, Local Government Code, does not apply to the district.


Added by Acts 2019, 86th Leg., R.S., Ch. 1269 (H.B. 4706), Sec. 1, eff. June 14, 2019.