Bill Text: TX HB2979 | 2019-2020 | 86th Legislature | Enrolled

---

Bill Title: Relating to the creation of the Liberty Grand 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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-05-31 - Effective immediately [HB2979 Detail]

Download: Texas-2019-HB2979-Enrolled.html

---

H.B. No. 2979

AN ACT
relating to the creation of the Liberty Grand 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 8049 to read as follows:
CHAPTER 8049. LIBERTY GRAND MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8049.0101. 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 Liberty Grand Municipal
Utility District No. 1.
Sec. 8049.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8049.0103. CONFIRMATION AND DIRECTOR 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. 8049.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8049.0103 until each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located has
consented by ordinance or resolution to the creation of the
district and to the inclusion of land in the district.
Sec. 8049.0105. 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. 8049.0106. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake made in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose a tax; or
(4) legality or operation.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8049.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8049.0202, directors
serve staggered four-year terms.
Sec. 8049.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Barrett Von Blon;
(2) Randall Hancock;
(3) Robert Derrick III;
(4) Jess Arnold; and
(5) Jock Naponic.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8049.0103; or
(2) the fourth anniversary of the effective date of
the Act enacting this chapter.
(c) If permanent directors have not been elected under
Section 8049.0103 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 8049.0103; 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. 8049.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8049.0302. 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. 8049.0303. 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. 8049.0304. 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. 8049.0305. 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. 8049.0306. DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if the district:
(1) has never issued any bonds; and
(2) is not imposing ad valorem taxes.
(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) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
8049.0103 to confirm the creation of the district.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between or among the new districts.
(g) 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.
(h) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 8049.0103.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(j) Any new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
(k) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
8049.0104 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8049.0401. 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 8049.0403.
(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. 8049.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8049.0401, 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. 8049.0403. 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. 8049.0501. 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. 8049.0502. 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. 8049.0503. 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 Liberty Grand Municipal Utility District No.
1 initially includes all the territory contained in the following
area:
BEING a 815.0-acre tract of land situated in the Edward King
Survey, Abstract No. 56, the A.S. McLemore Survey, Abstract
No. 700, the G.C. & S.F. R.R. Co. Survey, Abstract No. 463 and the
H. & T.C. R.R. Co. Survey, Abstract No. 267 of Liberty County, Texas
and being a portion of a called 100-acre tract of land as described
in an instrument to Stoesser Farms, Inc. recorded under Volume 745,
Page 268 of the Deed Records Liberty County (D.R.L.C.), a portion of
the 63rd Tract, 59th Tract, 66th Tract, 58th Tract, 43rd Tract, 37th
Tract and 39th Tract of lands as described in an instrument to
Stoesser Farms, Inc. recorded under Volume 601, Page 541 D.R.L.C.,
and all of the 56th Tract, 55th Tract-First Tract, and 60th
Tract-First Tract, of lands described in an instrument to Stoesser
Farms, Inc. recorded under Volume 601, Page 541 D.R.L.C., said
815.0-acre tract of land described by metes and bounds as follows:
BEGINNING at a 3/4-inch iron pipe found for an interior
corner of a called 85.63-acre tract of land, designated Tract 2,
described in an instrument to Coastal Water Authority recorded
under Liberty County Clerk's File Number (L.C.C.F. No.) 2012015879,
same being the Northwest corner of the remainder of said 100-acre
tract and the herein described tract;
THENCE, N 87°56'55" E, along and with the North line of the
remainder of said 100-acre tract and the North line of the remainder
of said 63rd Tract, same being a South line of said 85.63-acre
tract, a distance of 1,832.14 feet to a point for the Northeast
corner of the herein described tract;
THENCE, over and across the remainder of said 63rd Tract, the
remainder of said 59th Tract, and said 58th Tract, the following
courses and distances:
S 43°07'30" E, a distance of 66.12 feet to an angle
point of the herein described tract;
S 39°22'30" E, a distance of 1,727.57 feet to an angle
point of the herein described tract;
S 36°28'36" E, a distance of 942.93 feet to an angle
point of the herein described tract;
S 41°33'17" E, a distance of 280.68 feet to an angle
point of the herein described tract;
S 39°22'30" E, a distance of 1,727.57 feet to an angle
point of the herein described tract;
S 35°37'30" E, a distance of 1,102.16 feet to a point
for corner of the herein described tract, lying on the North line of
a called 80-acre tract of land, designated Tract Six, described in
an instrument to Phillip Fouts McMillan recorded under Volume 1102,
Page 722 of the Official Public Records of Liberty County Texas;
THENCE, along and with the North, West, South and East line of
said 80-acre tract, the following courses and distances:
S 88°25'48" W, a distance of 477.57 feet to a point for
the Northwest corner of said 80-acre tract and an interior corner of
the herein described tract;
S 01°34'12" E, a distance of 2,357.45 feet to a point
for the Southwest corner of said 80-acre tract and an interior
corner of the herein described tract;
N 88°25'48" E, a distance of 1,481.36 feet to a point
for the Southeast corner of said 80-acre tract and an interior
corner of the herein described tract;
N 01°34'12" W, a distance of 721.07 feet to a point for
corner of the herein described tract, lying on the West line of the
remainder of said 43rd Tract;
THENCE, S 31°52'30" E, over and across said 43rd Tract, a
distance of 184.89 feet to a point for corner of the herein
described tract, lying on a West Line of a called 519.20-acre tract
of land, designated Tract 2, described in an instrument to Cedar
Bayou Wildlife, LLC recorded under L.C.C.F. No. 2013000064;
THENCE, along and with the West lines of said 519.20-acre
tract the following courses and distances:
S 33°56'12" W, a distance of 84.47 feet to a point for an
interior corner of the herein described tract;
S 01°44'10" E, a distance of 541.13 feet to a point for
corner of the herein described tract;
S 87°49'15" W, a distance of 455.56 feet to a point for
an interior corner of the herein described tract;
S 01°52'18" E, a distance of 2,162.71 feet to an angle
point of the herein described tract;
S 10°26'41" W, a distance of 1,258.99 feet to a point
for corner of the herein described tract;
S 85°40'34" W, a distance of 610.17 feet to a point for
an interior corner of the herein described tract;
S 22°15'26" W, a distance of 858.89 feet to a point for
corner of the herein described tract;
S 78°54'43" W, a distance of 719.66 feet to a point for
the Southernmost corner of the herein described tract, lying on the
line common to said H. & T.C. R.R. Co. Survey, Abstract No. 267 and
the A.G. Penn Survey, Abstract No. 764;
THENCE, N 01°48'36" W, along and with said common line, a
distance of 30.17 feet to the common corner of said H. & T.C. R.R.
Co. Survey, Abstract No. 267, said A.G. Penn Survey, Abstract
No. 764, said G.C. & S.F. R.R. Co. Survey, Abstract No. 463 and the
J. Ross Survey, Abstract No. 806, same being an angle point of the
herein described tract;
THENCE, N 02°12'38" W, along and with the West line of said
G.C. & S.F. R.R. Co. Survey, Abstract No. 463, the remainder of said
39th Tract, and said the remainder of said 37th Tract, a distance
of 4,049.42 feet to a point for corner of the remainder of said 37th
Tract and the herein described tract, same being the Southwest
corner of a called 1.000-acre tract of land, designated Tract 6,
described in an instrument to Ray E. Stoesser, et ux, recorded under
L.C.C.F. No. 2014019951;
THENCE, along and with the lines common to the remainder of
said 37th Tract and said 1.000-acre tract, the following courses
and distances:
N 87°47'22" E, a distance of 208.71 feet to a point for
the Southeast corner of said 1.000-acre tract and an interior
corner of the herein described tract;
N 02°12'38" W, a distance of 208.71 feet to a point for
the Northeast corner of said 1.000-acre tract and an interior
corner of the herein described tract;
S 87°47'22" W, a distance of 208.71 feet to a point for
the Northwest corner of said 1.000-acre tract, same being a common
corner of said 37th Tract and the herein described tract;
THENCE, N 02°12'38" W, along and with the West line of the
remainder of said 37th Tract, a distance of 30.00 feet to a point
for corner lying on South line of said 60th Tract;
THENCE, S 88°22'49" W, along and with the South line of said
60th Tract, said 55th Tract, and said 56th Tract, a distance of
1,885.45 feet to the South common corner of said 56th Tract and the
remainder of said 66th Tract, same being an angle point of the
herein described tract;
THENCE, along and with the South line of the remainder of said
66th Tract, the following courses and distances:
S 89°38'05" W, a distance of 1,049.76 feet to an angle
point of the herein described tract;
S 87°54'35" W, a distance of 963.09 feet to a point for
corner the herein described tract, being the Southeast corner of
said 85.63-acre tract;
THENCE, N 02°04'22" W, along and with an East line of said
85.63-acre tract, same being the West lines of the remainder of said
66th Tract and the remainder of said 100-acre tract, a distance of
7,074.86 feet to the POINT OF BEGINNING and containing 820.0 acres
of land (Gross), SAVE & EXCEPT a called 5-acre tract of land,
designated 55th Tract, Second Tract, described in an instrument to
Stoesser Farms, Inc. recorded under Volume 601, Page 541 D.R.L.C.
leaving a net acreage of 815.0 acres of land.
Bearing orientation is based on the Texas Coordinate System
of 1983 (NAD83), South Central Zone 4204 and is referenced to deed
bearings of the West lines of said 519.20-acre tract of land as
cited herein.
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
8049, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8049.0307 to read as follows:
Sec. 8049.0307. 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 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2979 was passed by the House on April
12, 2019, by the following vote: Yeas 138, Nays 5, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2979 was passed by the Senate on May
15, 2019, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor