Relating to the creation of the Cedar Springs Improvement District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

89(R) HB 5683 - Introduced version - Bill Text

89R24773 MCF-D

By: Anchía

H.B. No. 5683

A BILL TO BE ENTITLED

relating to the creation of the Cedar Springs Improvement District;

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 C, Title 4, Special District Local Laws

Code, is amended by adding Chapter 4018 to read as follows:

CHAPTER

4018. CEDAR SPRINGS IMPROVEMENT DISTRICT

SUBCHAPTER A.

GENERAL PROVISIONS

Sec. 4018.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Dallas.

(3) "County" means Dallas County.

(4) "Director" means a board member.

(5)

"District" means the Cedar Springs Improvement

District.

Sec.

4018.0102.

NATURE OF DISTRICT. The Cedar Springs

Improvement District is a special district created under Section

59, Article XVI, Texas Constitution.

Sec.

4018.0103.

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 county,

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 county or 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 county or city services

provided in the district.

Sec.

4018.0104.

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 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.

Sec.

4018.0105.

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 contained in Section 2 of the Act

enacting this chapter form a closure. A mistake in the boundaries

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.

Sec.

4018.0106.

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.

Sec.

4018.0107.

APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec.

4018.0108.

CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.

4018.0201.

GOVERNING BODY; TERMS. (a) The district is

governed by a board of seven elected directors who serve staggered

terms of four years.

(b)

Directors are elected in the manner provided by

Subchapter D, Chapter 49, Water Code.

Sec.

4018.0202.

COMPENSATION; EXPENSES. (a) A director is

entitled to receive fees of office and reimbursement for actual

expenses as provided by Section 49.060, Water Code.

(b)

Sections 375.069 and 375.070, Local Government Code, do

not apply to the board.

Sec.

4018.0203.

INITIAL DIRECTORS. (a) The initial board

consists of the following directors:

Pos. No.

Name of Director

1

Lupe Valdez

2

Mikey Nguyen

3

David Drake

4

Adam Murphy

5

Tony Vedda

6

Martha Tiller

7

Randle Langdon

(b)

Of the initial directors, the terms of directors

appointed for positions one through four expire June 1, 2027, and

the terms of directors appointed for positions five through seven

expire June 1, 2029.

SUBCHAPTER C. POWERS AND DUTIES

Sec.

4018.0301.

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 may not provide retail water or sewer

service in an area receiving retail water or sewer service from

another water or sewer service provider.

Sec.

4018.0302.

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.

Sec.

4018.0303.

LAW ENFORCEMENT SERVICES. To protect the

public interest, the district may contract with a qualified party,

including the county or the city, to provide law enforcement

services in the district for a fee.

Sec.

4018.0304.

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.

4018.0305.

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.

Sec.

4018.0306.

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.

Sec.

4018.0307.

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.

4018.0308.

ADDING OR EXCLUDING LAND. The district may

add or exclude land in the manner provided by Subchapter J, Chapter

49, Water Code, or by Subchapter H, Chapter 54, Water Code.

Sec.

4018.0309.

NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

SUBCHAPTER D. ASSESSMENTS

Sec.

4018.0401.

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.

Sec.

4018.0402.

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.

(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.

SUBCHAPTER E. TAXES AND BONDS

Sec.

4018.0501.

TAX ELECTION REQUIRED. (a)

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.

(b)

Section 375.243, Local Government Code, does not apply

to the district.

Sec.

4018.0502.

OPERATION AND MAINTENANCE TAX. (a) If

authorized by a majority of the district voters voting at an

election under Section 4018.0501, 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, for any

district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b)

The board shall determine the operation and maintenance

tax rate. The rate may not exceed the rate approved at the

election.

Sec.

4018.0503.

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 ad valorem taxes,

assessments, 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.

Sec.

4018.0504.

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.

Sec.

4018.0505.

BONDS SECURED BY AD VALOREM TAXES;

ELECTIONS. (a) If authorized at an election under Section

4018.0501, 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.

Sec.

4018.0506.

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 as

required by applicable law.

(b)

This section applies only to the district's first

issuance of bonds payable from ad valorem taxes.

SUBCHAPTER I. DISSOLUTION

Sec.

4018.0901.

DISSOLUTION. (a) The board shall dissolve

the district on written petition filed with the board by the owners

of:

(1)

at least two-thirds 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)

at least two-thirds 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 board by majority vote may dissolve the district at

any time.

(c)

The district may not be dissolved by its board under

Subsection (a) or (b) if the district:

(1)

has any outstanding bonded indebtedness until that

bonded indebtedness has been repaid or defeased in accordance with

the order or resolution authorizing the issuance of the bonds;

(2)

has a contractual obligation to pay money until

that obligation has been fully paid in accordance with the

contract; or

(3)

owns, operates, or maintains public works,

facilities, or improvements unless the district contracts with

another person for the ownership, operation, or maintenance of the

public works, facilities, or improvements.

(d)

Sections 375.261, 375.262, and 375.264, Local

Government Code, do not apply to the district.

SECTION 2. The Cedar Springs Improvement District initially

includes all territory contained in the following area:

In Dallas County, Texas, the territory enclosed by Lemmon

Avenue as the northeast boundary, Oak Lawn Avenue as the southeast

boundary, Maple Avenue as the southwest boundary, and Inwood Road

as the northwest boundary.

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, 2025.