81R16370 SLB-F By: Otto H.B. No. 4802 A BILL TO BE ENTITLED AN ACT relating to the creation of the Liberty County Municipal Utility District No. 6; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. 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 8367 to read as follows: CHAPTER 8367. LIBERTY COUNTY MUNICIPAL UTILITY DISTRICT NO. 6 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8367.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Director" means a board member. (3) "District" means the Liberty County Municipal Utility District No. 6. Sec. 8367.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8367.003. CONFIRMATION AND DIRECTORS' 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. 8367.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8367.003 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. 8367.005. 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, or improvement of macadamized, graveled, or paved roads described by Section 54.234, Water Code, or improvements, including storm drainage, in aid of those roads. Sec. 8367.006. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act creating this chapter. (b) The boundaries and field notes contained in Section 2 of the Act creating 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. [Sections 8367.007-8367.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8367.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8367.052, directors serve staggered four-year terms. Sec. 8367.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Mark Froehlich; (2) Cynthia Gage; (3) Greg Parker; (4) Jeremy Newsom; and (5) Cindy Leslie. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8367.003; or (2) the fourth anniversary of the effective date of the Act creating this chapter. (c) If permanent directors have not been elected under Section 8367.003 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 8367.003; 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 Texas Commission on Environmental Quality 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. [Sections 8367.053-8367.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8367.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8367.102. 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. 8367.103. AUTHORITY FOR ROAD PROJECTS. (a) Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads described by Section 54.234, Water Code, or improvements, including storm drainage, in aid of those roads. (b) The district may exercise the powers provided by this section without submitting a petition to or obtaining approval from the Texas Commission on Environmental Quality as required by Section 54.234, Water Code. Sec. 8367.104. APPROVAL OF ROAD PROJECT. (a) The district may not undertake a road project authorized by Section 8367.103 unless: (1) each municipality or county that will operate and maintain the road has approved the plans and specifications of the road project, if a municipality or county will operate and maintain the road; or (2) the Texas Transportation Commission has approved the plans and specifications of the road project, if the state will operate and maintain the road. (b) Except as provided by Subsection (a), the district is not required to obtain approval from the Texas Transportation Commission to design, acquire, construct, finance, issue bonds for, improve, or convey a road project. Sec. 8367.105. 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. 8367.106. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district to acquire a site or easement for: (1) a road project authorized by Section 8367.103; or (2) a recreational facility as defined by Section 49.462, Water Code. Sec. 8367.107. DIVISION OF DISTRICT. (a) The district may be divided into two or more new districts only if the district: (1) has no outstanding bonded debt; 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 creating 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 8367.003 to confirm the district's creation. (f) An order dividing the district: (1) shall: (A) name each new district; (B) include the metes and bounds of each new district; (C) appoint temporary directors for each new district, or provide that the owner or owners of a majority of the assessed value of the real property in each new district may submit a petition to the Texas Commission on Environmental Quality requesting that the commission appoint as temporary directors the five persons named in the petition; and (D) provide for the division of assets and liabilities between or among the new districts; and (2) is subject to a confirmation election in each new district. (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 Texas Commission on Environmental Quality 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 8367.003. The results of that election must be filed as required by Sections 49.102(e) and (f), Water Code. If the voters of a new district do not confirm the creation of the new district, the assets, liabilities, territory, and governance of the new district revert to the original district. (i) Municipal consent to the creation of the district and to the inclusion of land in the district granted under Section 8367.004 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. (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. [Sections 8367.108-8367.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8367.151. 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 8367.153. (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. 8367.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8367.151, 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. 8367.153. 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. [Sections 8367.154-8367.200 reserved for expansion] SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8367.201. 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. 8367.202. 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. 8367.203. 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 County Municipal Utility District No. 6 initially includes all the territory contained in the following area: BEING A 1,393.8 ACRE TRACT OF LAND SITUATED IN THE MARY MAGRUDER SURVEY, ABSTRACT 311, LIBERTY COUNTY, TEXAS, BEING OUT OF THAT CALLED 3,696.8474 ACRE TRACT DESCRIBED IN DEED TO FORESTAR (USA) REAL ESTATE GROUP INC. RECORDED UNDER FILE NUMBER 20070657801 OF THE HARRIS COUNTY DEED RECORDS AND FILE NUMBER 2007014954 OF THE LIBERTY COUNTY DEED RECORDS, SAID 1,393.8 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, (BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF 1983, SOUTH CENTRAL ZONE, AS DETERMINED BY GPS MEASUREMENTS): BEGINNING AT A FOUND CONCRETE MONUMENT WITH BRASS DISK STAMPED 'L7' FOR THE NORTHEAST CORNER OF THE CALLED 3,696.8474 ACRE TRACT, THE NORTHEAST CORNER OF SAID MARY MAGRUDER SURVEY, A-311, THE SOUTHEAST CORNER OF THE H.T.&B.R.R. NO. 13 1/2 SURVEY, A-635, THE SOUTHWEST CORNER OF THE W. MCWILKINSON SURVEY, A-317, AND THE NORTHWEST CORNER OF THE H.B. WITHAM SURVEY, A-395, FROM WHICH FOUND A 1-1/2-INCH AXLE BEARS SOUTH 85 WEST, 0.6 FEET; THENCE SOUTH 0130'36" EAST, 5,337.88 FEET, ALONG THE COMMON LINE BETWEEN SAID MARY MAGRUDER SURVEY, ABSTRACT 311, AND SAID H.B. WITHAM SURVEY, ABSTRACT 395 TO A BROKEN CONCRETE MONUMENT FOUND ON THE NORTH LINE OF THE E. KING SURVEY, ABSTRACT 57, AND MARKING THE SOUTHWEST CORNER OF SAID H.B. WITHAM SURVEY, ABSTRACT 395, THE SOUTHEAST CORNER OF THE MARY MAGRUDER SURVEY, ABSTRACT 311, AND THE MOST EASTERLY SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT, FROM WHICH A 18-INCH PINE TREE BEARS SOUTH 30 WEST, 17.8 FEET AND A 36-INCH OAK BEARS NORTH 18 EAST, 29.3 FEET; THENCE SOUTH 8634'11" WEST, WITH THE NORTH LINE OF SAID E. KING SURVEY, ABSTRACT 57, 10.33 FEET, TO A BROKEN CONCRETE MONUMENT FOUND FOR AN ANGLE POINT IN THE EASTERLY SOUTH LINE OF THE HEREIN DESCRIBED TRACT, FROM WHICH A FOUND AXLE BEARS SOUTH 2451' EAST, 1.2 FEET; THENCE SOUTH 8814'17" WEST, WITH THE COMMON LINE BETWEEN SAID MARY MAGRUDER SURVEY, ABSTRACT 311 AND SAID E. KING SURVEY, ABSTRACT 57, 2,602.14 FEET TO A CONCRETE MONUMENT FOUND FOR AN ANGLE POINT IN THE EASTERLY SOUTH LINE OF THE HEREIN DESCRIBED TRACT, FROM WHICH A FOUND AXLE BEARS SOUTH 5349' WEST, 1.1 FEET; THENCE SOUTH 8810'22" WEST, WITH THE COMMON LINE BETWEEN SAID MARY MAGRUDER SURVEY, ABSTRACT 311 AND SAID E. KING SURVEY, ABSTRACT 57, 8,068.22 FEET TO THE SOUTHWESTERLY CORNER OF THE HEREIN DESCRIBED TRACT BEING IN THE COMMON LINE BETWEEN HARRIS COUNTY AND LIBERTY COUNTY; THENCE NORTH 2011'08" WEST, WITH THE COMMON LINE BETWEEN HARRIS COUNTY AND LIBERTY COUNTY, 5,390.36 FEET TO THE NORTHWESTERLY CORNER OF THE HEREIN DESCRIBED TRACT BEING IN A NORTHERLY LINE OF THE AFOREMENTIONED 3,696.8474 ACRE TRACT; THENCE NORTH 8736'01" EAST, WITH THE NORTHERLY LINE OF SAID 3,696.8474 ACRE TRACT, 3,373.86 FEET TO A 1/2-INCH IRON ROD FOUND FOR CORNER; THENCE NORTH 0223'59" WEST, CONTINUING ALONG THE NORTHERLY LINE OF SAID 3,696.8474 ACRE TRACT, 100.00 FEET TO A CALCULATED CORNER FROM WHICH A 1/2-INCH IRON ROD FOUND BEARS N0W, 0.2 FEET AND A 1/2-INCH IRON ROD FOUND BEARS N12W, 6.7 FEET, BEING ON THE NORTH LINE OF THE MARY MAGRUDER SURVEY, ABSTRACT 311 AND THE W.R. SEARCY NO. 14 1/2 SURVEY, ABSTRACT 792, LIBERTY COUNTY, TEXAS; THENCE NORTH 8737'52" EAST, ALONG THE NORTH LINE OF THE MARY MAGRUDER SURVEY, ABSTRACT 311 AND GENERALLY WITH THE SOUTH LINE OF THE W.R. SEARCY NO. 14 1/2, ABSTRACT 792, AND THE SOUTH LINE OF SAID H.T. & B. R.R. NO. 13 1/2 SURVEY, ABSTRACT 635, A DISTANCE OF 9,035.70 FEET TO THE POINT OF BEGINNING AND CONTAINING 1,393.8 ACRES OF LAND. 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. 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, 2009.