S.B. No. 2512 AN ACT relating to the creation of the Chambers County Improvement District No. 3; granting road powers; 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 8361 to read as follows: CHAPTER 8361. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8361.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Director" means a board member. (3) "District" means the Chambers County Improvement District No. 3. Sec. 8361.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8361.003. 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. 8361.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8361.003 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. 8361.005. 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, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8361.006. 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 8361.007-8361.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8361.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8361.052, directors serve staggered four-year terms. Sec. 8361.052. TEMPORARY DIRECTORS. (a) On or after the effective date of the Act creating 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 Texas Commission on Environmental Quality 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 8361.003; 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 8361.003 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 8361.003; 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 8361.053-8361.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8361.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8361.102. 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. 8361.103. 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. 8361.104. 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. 8361.105. 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. 8361.106. 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 8361.103; or (2) a recreational facility as defined by Section 49.462, Water Code. Sec. 8361.107. 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 8361.003 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 8361.003. 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 8361.004 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. Sec. 8361.108. FIREFIGHTING AND EMERGENCY MEDICAL SERVICES. Subchapter L, Chapter 49, Water Code, applies to the district. Sec. 8361.109. FEASIBILITY EVALUATION. For purposes of any applicable evaluation by the Texas Commission on Environmental Quality of the economic feasibility of the district or its projects and bonds, debt service tax rate, maintenance tax rate, or overlapping tax rate, the district shall be treated as a municipal utility district situated wholly within Harris County. [Sections 8361.110-8361.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8361.151. 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 8361.153. (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. 8361.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8361.151, 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. 8361.153. 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 8361.154-8361.200 reserved for expansion] SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8361.201. 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. 8361.202. 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. 8361.203. 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 Chambers County Improvement District No. 3 initially includes all the territory contained in the following area: A certain 880.30 acre tract, situated in the Jacob Townsend Survey, Abstract No. 25, the R. A. West Survey, Abstract No. 314, the Kate Dugat Survey, Abstract No. 416, and the A. B. J. Winfree Survey, Abstract No. 306 all in Chambers County, Texas; being all of a called 285.48 acre tract (Tract 1), all of a called 129.96 acre tract (Tract 2), and all of a called 254.14 acre tract (Tract 3) described in Special Warranty Deed with Vendor's Lien recorded in Volume (08) 1067, Page 264 of the Chambers County Official Public Records, and all of a called 210.72 acre tract described in Special Warranty Deed recorded in Volume (08) 1074, Page 223 of the Chambers County Official Public Records; said 880.30 acre tract being comprised of three tracts and being more particularly described as follows with all bearings being based on the Texas Coordinate System, South Central Zone, NAD83; Tract I - 285.48 acres BEGINNING at the northeast corner of said called 285.48 acre tract, being common with a northwest corner of a called 11.89 acre tract conveyed to Coastal Industrial Water Authority recorded in Volume 313, Page 663 of the Chambers County Deed Records; THENCE, South 0419'04" West, 2683.79 feet to a point for corner in the beginning of a curve to the right; THENCE, along the arc of said curve to the right, having a radius of 930.06 feet, a central angle of 1232'57", an arc length of 203.71 feet, and a long chord bearing South 1035'34" West, 203.30 feet to a point for corner; THENCE, South 1655'29" West, 1096.02 feet to a point for corner marking the southeast corner of the aforementioned called 285.48 acre tract; THENCE, South 8737'03" West, along the south line of said called 285.48 acre tract, 3049.05 feet to a point for corner marking the southwest corner of the said called 285.48 acre tract; THENCE, North 0143'33" West, along a west line of the said called 285.48 acre tract, being common with the east line of the B.B.B.&C. R.R. Co. Survey, Abstract No. 61, 1108.94 feet to a point for corner marking a southern northwest corner of the said called 285.48 acre tract; THENCE, North 8014'58" East, along the lower west line of the said called 285.48 acre tract, 421.47 feet to a point for corner marking an interior corner of the said called 285.48 acre tract; THENCE, North 0239'44" West, along the upper west line of the said called 285.48 acre tract, 2708.36 feet to a point for corner marking the northwest corner of said called 285.48 acre tract, said point being the occupied northwest corner of the Jacob Townsend Survey, Abstract 25; THENCE, North 8704'16" East, along the north line of the called 285.48 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1773.49 feet to a point for corner; THENCE, North 8715'45" East, along the north line of the called 285.48 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1579.36 feet to the POINT OF BEGINNING, CONTAINING 285.48 acres of land in Chambers County, Texas Tract II - 129.96 acres BEGINNING at the northeast corner of the aforementioned 129.96 acre tract (in the north line of the Jacob Townsend Survey, Abstract 25), said point also marking the northwest corner of a called 40.801 acre tract (Parcel 18) as described in Second Amended Notice of Lis Pendis recorded in Volume (07) 934, Page 280 of the Chambers County Official Public Records; THENCE, South 2947'53" West, along the east line of said 129.96 acre tract, common with the west line of said 40.801 acre tract being the west right-of-way line of State Highway 99, 2795.10 feet to a point for corner at the beginning of a curve to the left; THENCE, along the arc of said curve to the left, having a radius of 4019.72 feet, a central angle of 2318'04", a chord length of 1623.51 feet, and a long chord bearing South 1808'51" West, continuing in all a total arc length of 1634.75 feet to a point for corner at the southeast corner of the said 129.96 acre tract, said point also marking the southwest corner of said 40.801 acre tract; THENCE, South 8739'30" West, along the south line of said 129.96 acre tract (common with the south line of the Jacob Townsend Survey, Abstract 25), 1005.32 feet to a point for corner marking the southwest corner of said 129.96 acre tract, being in the occupied east right-of-way line of Needlepoint Road (as described in the parent tract deed); THENCE, along the west line of said 129.96 acre tract, described as being common with the occupied east right-of-way line of Needlepoint Road the following nine (9) courses and distances: 1. North 1624'09" East, 1157.81 feet to a point for corner; 2. North 1519'42" East, 41.33 feet to a point for corner; 3. North 1523'18" East, 55.80 feet to a point for corner; 4. North 1710'54" East, 45.19 feet to a point for corner; 5. North 0838'17" East, 37.06 feet to a point for corner; 6. North 0231'50" East, 54.46 feet to a point for corner; 7. North 0157'55" East, 47.69 feet to a point for corner; 8. North 0122'26" East, 524.57 feet to a point for corner; 9. North 0428'33" East, 2045.44 feet to a point for corner marking the northwest corner of said 129.96 acre tract; THENCE, North 8912'24" East, with the north line of said 129.96 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1407.80 feet to a point for corner; THENCE, North 8734'17" East, along the north line of said 129.96 acre tract, 944.50 feet to the POINT OF BEGINNING, CONTAINING 129.96 acres of land in Chambers County, Texas. Tract III - 464.86 acres (combination of 254.14 and 210.72 acre tracts) BEGINNING at the northwest corner of the said 210.72 acre tract; THENCE, North 8731'31" East, along the north line of said 210.72 acre tract, 1796.29 feet to a point for corner at a northeast corner of the said 210.72 acre tract; THENCE, South 0307'50" East, along the east line of said 210.72 acre tract, 1709.93 feet to a point for corner; THENCE, North 8805'10" East, with a north line of said 210.72 acre tract, 1716.89 feet to a point for corner; THENCE, South 0140'35" East, along an east line of said 210.72 acre tract, 1242.97 feet to a point for corner; THENCE, South 8759'43" West, 3.91 feet to a point for corner; THENCE, South 0133'16" East, along an east line of the aforementioned 210.72 acre tract, 868.67 feet to a point for corner; THENCE, South 8818'21" West, 398.02 feet to a point for corner; THENCE, South 0126'48" East, 192.80 feet to a point for corner; THENCE, South 8728'30" West, 819.13 feet to a point for corner; THENCE, South 0230'46" East, 160.39 feet to a point for corner; THENCE, South 0749'09" East, 360.01 feet to a point for corner; THENCE, South 1538'38" East, 338.95 feet to a point for corner; THENCE, North 8727'23" East, 693.04 feet to a point for corner; THENCE, South 0126'48" East, 19.26 feet to a point for corner; THENCE, South 8743'36" East, 396.00 feet to a point for corner; THENCE, South 0127'10" East, 26.16 feet to a point for corner; THENCE, South 8931'04" East, 598.07 feet to a point for corner, said point also being in the westerly right-of-way of Farm to Market Road (F.M.) 3180 (140 foot right-of-way), dedication of which is recorded in Volume 300, Page 622 of the Chambers County Deed Records; THENCE, South 0709'09 West, along the westerly right-of-way of said F.M. 3180, 100.68 feet to a point for corner; THENCE, North 8931'04" West, 577.87 feet to a point for corner; THENCE, North 0133'16" West, 25.84 feet to a point for corner; THENCE, North 8743'36" West, 497.18 feet to a point for corner; THENCE, North 0436'34" West, 11.39 feet to a point for corner; THENCE, South 8727'23" West, 673.99 feet to a point for corner; THENCE, North 1538'45" West, 425.19 feet to a point for corner; THENCE, North 0749'09" West, 371.48 feet to a point for corner; THENCE, South 8727'38" West, 509.36 feet to a point for corner, said point also being in the east line of the aforementioned 254.14 acre tract; THENCE, South 0231'16" East, along the east line of the said 254.14 acre tract (common with the east line of the Jacob Townsend Survey, Abstract 25), 2747.10 feet to a point for corner marking the southeast corner of said 254.14 acre tract; THENCE, South 8739'30" West, along the south line of said 254.14 acre tract (common with the south line of the Jacob Townsend Survey, Abstract 25), 3790.48 feet to a point for corner in the east right-of-way line of State Highway 99 being described as a called 40.801 acre tract (Parcel 18) in Second Amended Notice of Lis Pendis recorded in Volume (07) 934, Page 280 of the Chambers County Official Public Records, said point being in the arc of a non-tangent curve to the right; THENCE, along the west line of the said 254.14 acre tract, common with the east right-of-way line of said State Highway 99 and the arc of said non-tangent curve to the right, having a radius of 3619.72 feet, a central angle of 2218'55", an arc length of 1409.79 feet, and a long chord bearing North 1838'26" East, 1400.90 feet to a point for corner; THENCE, North 2947'53" East, continuing along said east right-of-way line of State Highway 99, 2795.78 feet to a point for corner at the beginning of a curve to the left; THENCE, along the east line of said State Highway 99, and along the arc of said curve to the left, having a radius of 3064.79 feet, a central angle of 5706'39", an arc length of 3,054.89 feet, and a long chord bearing North 0114'33" East, 2,929.99 feet to a point for corner; THENCE, North 2718'47" West, continuing along the east line of said State Highway 99, 156.96 feet to a point for corner; THENCE, North 0244'58" West, 193.07 feet to the POINT OF BEGINNING, CONTAINING 464.86 acres of land in Chambers County, Texas, along with the herein described 285.48 acre tract (Tract I), and the herein described 129.96 acre tract (Tract II) for a total acreage of 880.30 acres. 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. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 2512 passed the Senate on May 12, 2009, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 2512 passed the House on May 27, 2009, by the following vote: Yeas 148, Nays 0, one present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor