Bill Text: TX HB4674 | 2019-2020 | 86th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the creation of the Chambers County Municipal Utility District No. 2; 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) 2019-06-14 - Effective immediately [HB4674 Detail]

Download: Texas-2019-HB4674-Engrossed.html

---

By: Bailes H.B. No. 4674

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Chambers County Municipal Utility
District No. 2; 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 8039 to read as follows:
CHAPTER 8039. CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8039.0101. 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 Chambers County Municipal
Utility District No. 2.
Sec. 8039.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8039.0103. 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. 8039.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8039.0103 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. 8039.0105. 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. 8039.0106. 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. 8039.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8039.0202, directors
serve staggered four-year terms.
Sec. 8039.0202. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district may submit a petition to the commission requesting that
the commission appoint as temporary directors the five persons
named in the petition. The commission shall appoint as temporary
directors the five persons named in the petition.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8039.0103; 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 8039.0103 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 8039.0103; 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. 8039.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8039.0302. 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. 8039.0303. 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. 8039.0304. 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. 8039.0305. 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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8039.0401. 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 8039.0403.
(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. 8039.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8039.0401, 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. 8039.0403. 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. 8039.0501. 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. 8039.0502. 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. 8039.0503. 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.
SUBCHAPTER F. MISCELLANEOUS PROVISIONS
Sec. 8039.0601. RESIDENCE HOMESTEAD EXEMPTION REQUIRED.
The board shall adopt an exemption from ad valorem taxation by the
district of a portion of the appraised value of a district
resident's residence homestead as provided by Section 11.13(d), Tax
Code, if the board determines that the adoption of the exemption
does not increase or impair a reduction of the district's total tax
rate for the residence homestead for the year in which the exemption
is adopted compared to the district's total tax rate for the
residence homestead for the preceding year.
SECTION 2. The Chambers County Municipal Utility District
No. 2 initially includes all the territory contained in the
following area:
Being a 363.441 acre tract of land located in the B. Winfree
Survey, Abstract No. 28, Chambers County, Texas; said 363.441 acre
tract being all of a called 171.900 acre tract of land (Tract 1) and
all of a called 191.541 acre tract of land (Tract 2) recorded in the
name of Ameriport, LLC. in Document No. 2018-134001 of the Official
Public Records of Chambers County (O.P.R.C.C.); said 363.441 acre
tract being more particularly described as Tract 1 and Tract 2 by
metes and bounds as follows (all bearings are referenced to the
Texas Coordinate System, North American Datum 1983 (NAD 83), South
Central Zone):
Tract 1:
Beginning at a called 5/8-inch iron rod at the northeast
corner of said 171.900 acre tract and the northwest corner of a
called 43.23 acre tract of land recorded in the name of Guy Pfitzner
in Volume 1573, Page 416 of the O.P.R.C.C., and being on the
southerly line of a called 254.14 acre tract of land recorded in the
name of Grand Parkway/Kilgore Parkway, L.P. in Volume 1067, Page
264 of the O.P.R.C.C.;
1. Thence, with the easterly line of said 171.900 acre tract
and the westerly line of said 43.23 acre tract, South 02 degrees 47
minutes 36 seconds East, a distance of 2,995.19 feet to the
southeast corner of said 171.900 acre tract and the southwest
corner of said 43.23 acre tract, and being on the northwesterly
right-of-way line of FM 565 (width varies) as recorded in Volume
121, Page 151 and 214 and Volume 978, Page 325 of the C.C.D.R.;
2. Thence, with the southeasterly line of said 171.900 acre
tract and said northwesterly right-of-way line of FM 565, South 50
degrees 13 minutes 52 seconds West, a distance of 856.17 feet;
3. Thence, continuing with said southeasterly line of the
171.900 acre tract and said northwesterly right-of-way line of FM
565, South 50 degrees 17 minutes 52 seconds West, a distance of
1,904.70 feet to the southwesterly corner of said 171.900 acre
tract and being at the intersection with the northeasterly
right-of-way line of Needlepoint Road (width varies);
4. Thence, with the westerly line of said 171.900 acre tract
and said easterly right-of-way line of Needlepoint Road, North 28
degrees 59 minutes 14 seconds West, a distance of 214.63 feet to the
most southerly corner of a called 27.650 acre tract of land recorded
in the name of State of Texas in Volume 570, Page 546 and Volume 899,
Page 415 of the O.P.R.C.C., and being on the easterly right-of-way
line of State Highway 99 (Grand Parkway) (width varies);
Thence, with the westerly line of said 171.900 acre tract and
said easterly right-of-way line of State Highway 99, the following
five (5) courses:
5. North 08 degrees 03 minutes 08 seconds West, a distance
of 169.59 feet;
6. North 16 degrees 55 minutes 00 seconds East, a distance
of 766.59 feet;
7. 679.78 feet along the arc of a curve to the left, said
curve having a central angle of 19 degrees 28 minutes 27 seconds, a
radius of 2,000.00 feet and a chord that bears North 07 degrees 10
minutes 49 seconds East, a distance of 676.51 feet;
8. North 02 degrees 33 minutes 28 seconds West, a distance
of 1,718.97 feet;
9. 1,206.61 feet along the arc of a curve to the right, said
curve having a central angle of 10 degrees 02 minutes 11 seconds, a
radius of 6,888.29 feet and a chord that bears North 02 degrees 27
minutes 38 seconds East, a distance of 1,205.07 feet to the
northwest corner of aforesaid 171.900 acre tract and the southwest
corner of aforesaid 254.14 acre tract;
10. Thence, with the northerly line of said 171.900 acre
tract and the southerly line of said 254.14 acre tract, North 87
degrees 39 minutes 30 seconds East, a distance of 1,824.19 feet to
the Point of Beginning and containing 171.900 acres of land in Tract
1.
Tract 2:
Beginning at a called 5/8-inch iron rod at the southwest
corner of aforesaid 191.541 acre tract and the northwest corner of a
called 1.228 acre tract of land recorded in the name of Johland
Investments, LLC. in Volume 1704, Page 156 of the O.P.R.C.C., and
being on the northeasterly right-of-way line of FM 2354
(120.00-feet wide) as recorded in Volume 191, Page 542 of the
Chambers County Deed Records (C.C.D.R.);
1. Thence, with the southwesterly line of said 191.541 acre
tract and said northeasterly right-of-way line of FM 2354, 485.65
feet along the arc of a curve to the left, said curve having a
central angle of 04 degrees 51 minutes 23 seconds, a radius of
5,729.58 feet and a chord that bears North 37 degrees 33 minutes 03
seconds West, a distance of 485.51 feet;
2. Thence, continuing with said southwesterly line of the
191.541 acre tract and said northeasterly right-of-way line of FM
2354, North 40 degrees 38 minutes 16 seconds West, a distance of
857.53 feet to the southerly end of a cutback corner at the
intersection with the southeasterly right-of-way line of aforesaid
FM 565;
3. Thence, with said cutback, North 13 degrees 53 minutes 15
seconds West, a distance of 111.07 feet to the northerly end of said
cutback;
4. Thence, with the northwesterly line of said 191.541 and
said southeasterly right-of-way line of FM 565, North 50 degrees 17
minutes 52 seconds East, a distance of 1,842.85 feet;
5. Thence, continuing with said northwesterly line of the
191.541 acre tract and said southeasterly right-of-way line, North
50 degrees 13 minutes 52 seconds East, a distance of 1,471.18 feet
to the most northerly corner of said 191.541 acre tract and the
westerly corner of Tiffany Acres Section 2, a subdivision recorded
in Volume A, Page 243 of the Chambers County Map Records (C.C.M.R.);
6. Thence, with the northeasterly line of said 191.541 acre
tract, the southwesterly line of said Tiffany Acres Section 2, and
the southwesterly line of a called 2.000 acre tract of land recorded
in the name of David Michael McAdams and Jodie L. McAdams in Volume
662, Page 363 of the O.P.R.C.C., South 39 degrees 41 minutes 39
seconds East, a distance of 2,744.85 feet to the most easterly
northeast corner of said 191.541 acre tract and the southerly
corner of said 2.000 acre tract, and being on the westerly line of a
called 2.000 acre tract of land recorded in the name of Norberto
Pagan and Delia Pagan in Volume 236, Page 460 of the O.P.R.C.C.;
7. Thence, with the easterly line of said 191.541 acre
tract, the westerly line of said 2.000 acre tract, the westerly line
of a called 1.000 acre tract of land recorded in the name of
Valentin Garcia and Hilda A. Garcia in Volume 236, Page 474 of the
O.P.R.C.C., the westerly line of a called 1.000 acre tract of land
recorded in the name of Wyman Tod Stephens in Volume 1215, Page 524
of the O.P.R.C.C., the westerly line of a called 2.00 acre tract of
land recorded in the name of Graciela Hurtado Reyna in Volume 1502,
Page 625 of the O.P.R.C.C., and the westerly line of a called 1.9912
acre tract of land recorded in the name of Dennis Ray Peting and
Drena Lee Peting in Volume 150, Page 218 of the O.P.R.C.C., South 02
degrees 45 minutes 29 seconds East, a distance of 637.48 feet to the
most easterly southeast corner of said 191.541 acre tract and the
northeast corner of a called 7.965 acre tract recorded in the name
of NEQ Investments, LLC. in Volume 952, Page 729 of the O.P.R.C.C.;
8. Thence, with the southerly line of said 191.541 acre
tract and the northerly line of said 7.965 acre tract, South 86
degrees 48 minutes 29 seconds West, a distance of 1,085.42 feet to
an interior corner of said 191.541 acre tract and the northwest
corner of said 7.965 acre tract;
9. Thence, with an easterly line of said 191.541 acre tract
and the westerly line of said 7.965 acre tract, South 03 degrees 11
minutes 31 seconds East, a distance of 320.00 feet to the most
southerly southeast corner of said 191.541 acre tract, the
southwest corner of said 7.965 acre tract, and the northeast corner
of a called 8.66 acre tract of land recorded in the name of David L.
Gamble in Volume 337, Page 419 of the O.P.R.C.C.;
10. Thence, with the southerly line of said 191.541 acre
tract, the northerly line of said 8.66 acre tract, the northerly
line of a called 1.7 acre tract recorded in the name of General
Telephone Company (Verizon Communications-Texas) in Volume 307,
Page 642 of the O.P.R.C.C., the northerly line of a called 2.1681
acre tract of land recorded in the name of David Schaffer and wife,
Donna Schaffer in Volume 27, Page 509 of the O.P.R.C.C., and the
northerly line of aforesaid 1.228 acre tract, South 86 degrees 48
minutes 29 seconds West, a distance of 2,389.16 feet to the Point of
Beginning and containing 191.541 acres of land in Tract 2.
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
8039, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8039.0306 to read as follows:
Sec. 8039.0306. 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. If S.B. No. 239, Acts of the 86th Legislature,
Regular Session, 2019, does not become law, Subchapter F, Chapter
8039, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8039.0602 to read as follows:
Sec. 8039.0602. BOARD MEETING LOCATION. The board shall
designate a place inside the district for conducting the meetings
of the board. If the board is unable to designate a suitable
meeting place inside the district, the board may designate a place
outside the district that is located not farther than 10 miles from
the district's boundaries.
SECTION 6. 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.