89R17127 MCF-F
By: Holt H.B. No. 5680
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Bayou Belle Municipal Management
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 C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 4021 to read as follows:
CHAPTER 4021. BAYOU BELLE MUNICIPAL MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 4021.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "County" means Liberty County.
(3) "Director" means a board member.
(4) "District" means the Bayou Belle Municipal
Management District No. 1.
Sec. 4021.0102. NATURE OF DISTRICT. The Bayou Belle
Municipal Management District No. 1 is a special district created
under Section 59, Article XVI, Texas Constitution.
Sec. 4021.0103. 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
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 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 services provided in the
district.
Sec. 4021.0104. 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 water, wastewater, drainage, 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. 4021.0105. 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 and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake 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 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. 4021.0106. 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. 4021.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 4021.0108. 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. 4021.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five 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. 4021.0202. COMPENSATION; EXPENSES. (a) The district
may compensate each director in an amount not to exceed $150 for
each board meeting. The total amount of compensation for each
director in one year may not exceed $7,200.
(b) A director is entitled to reimbursement for necessary
and reasonable expenses incurred in carrying out the duties and
responsibilities of the board.
(c) Sections 375.069 and 375.070, Local Government Code, do
not apply to the board.
Sec. 4021.0203. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director Pos. No. Name of Director
Pos. No. Name of Director
1 Dez Carlson 1 Dez Carlson
1 Dez Carlson
2 Remard Mason 2 Remard Mason
2 Remard Mason
3 Kye Sampson 3 Kye Sampson
3 Kye Sampson
4 Anthony Hernandez 4 Anthony Hernandez
4 Anthony Hernandez
5 Kyle Clarke 5 Kyle Clarke
5 Kyle Clarke
(b) Of the initial directors, the terms of directors
appointed for positions one through three expire June 1, 2027, and
the terms of directors appointed for positions four and five expire
June 1, 2029.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 4021.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 4021.0302. 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. 4021.0303. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 4021.0304. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or a municipality with territory in the
district, to provide law enforcement services in the district for a
fee.
Sec. 4021.0305. 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. 4021.0306. 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. 4021.0307. 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. 4021.0308. 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. 4021.0309. ADDING OR EXCLUDING LAND. Except as
provided by Section 4021.0310, 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. 4021.0310. 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 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) An order dividing the district must:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint initial directors for each new district;
and
(4) provide for the division of assets and liabilities
between or among the new districts.
(f) 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.
(g) 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.
(h) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
4021.0506 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.
Sec. 4021.0311. EMINENT DOMAIN. The district may exercise
the power of eminent domain in the manner provided by Section
49.222, Water Code.
SUBCHAPTER D. ASSESSMENTS
Sec. 4021.0401. 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. 4021.0402. 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. 4021.0501. 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. 4021.0502. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election under Section 4021.0501, 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. 4021.0503. 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, by public or private sale,
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. 4021.0504. 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. 4021.0505. BONDS SECURED BY AD VALOREM TAXES;
ELECTIONS. (a) If authorized at an election under Section
4021.0501, 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. 4021.0506. CONSENT OF MUNICIPALITY REQUIRED. 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.
SUBCHAPTER I. DISSOLUTION
Sec. 4021.0901. 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 Bayou Belle Municipal Management District
No. 1 initially includes all territory contained in the following
area:
A 605.3082 ACRE TRACT OF LAND IN THE JULIANNA MALLEY LEAGUE,
ABSTRACT NO. 71 LIBERTY COUNTY, TEXAS, BEING OUT OF A CALLED 98.05
ACRE TRACT OF LAND (TRACT A) AND A 76.95 ACRE TRACT OF LAND (TRACT B)
BOTH CONVEYED TO JAMES A. SMESNY, AS RECORDED UNDER LIBERTY COUNTY
CLERKS FILE NUMBER (L.C.C.F. NO.) 2013009926, AND BEING OUT OF A
TRACT OF LAND CONVEYED TO MARILYN A. MCCOY, AS RECORDED UNDER
L.C.C.F. NO. 2024026279, SAID 605.3082 ACRE TRACT BEING MORE
PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, (WITH
BEARINGS BASED ON TEXAS COORDINATE SYSTEM OF 1983, CENTRAL ZONE, AS
DETERMINED BY GPS MEASUREMENTS):
BEGINNING at a capped 1/2-inch iron rod (unable to read cap,
underwater) found on the north line of a tract of land (Tract 1)
conveyed to Cedar Bayou Farms, LTD. As recorded under L.C.C.F.
No. 2014015962, marking the southeast corner of a called 1,296.96
acre tract of land, conveyed to Ironwood Holdings, LLC, as recorded
under L.C.C.F. no. 2018017630 and the southwest corner of the
herein described tract;
THENCE, North 12°41'11" West, along the east line of said 1,296.96
acre tract a distance of 5,892.63 feet to a capped 1/2-inch iron rod
stamped "HOFFPAUIR RPLS 4492" found marking an interior corner of
said 1,296.96 acre tract and the northwest corner of the herein
described tract;
THENCE, North 76°27'15" East, along a south line of said 1,296.96
acre tract, a distance of 2,334.77 feet to a capped 1/2-inch iron
rod (unable to read cap, underwater) found marking a southeasterly
corner of said 1,296.96 acre tract, the southwest corner of a called
150.49 acre tract, conveyed to multiple owners, as described in
Volume 1183, Page 75 of the Liberty County Deed Records (L.C.D.R.)
and in L.C.C.F. No. 2015020160, and an angle in the northern line of
the herein described tract;
THENCE, North 76°29'43" East, along the south line of said 150.49
acre tract, a distance of 1,803.29 feet to the southwest corner of a
called 49.51 acre tract of land, conveyed to Marilyn A. McCoy under
said L.C.C.F. no. 2024026279 and described in document recorded
under L.C.C.F. No. 2015020160 and an interior corner of the herein
described tract;
THENCE, along the common line of said 150.49 acre tract and said
49.51 acre tract, the following nine (9) courses and distances:
(1) North 10°36'07" East, a distance of 495.99 feet to an
angle point;
(2) North 21°06'58" East, a distance of 969.97 feet to an
angle point;
(3) North 20°56'41" East, a distance of 613.07 feet to an
angle point;
(4) North 31°29'49" East, a distance of 35.91 feet to an
angle point;
(5) North 49°26'57" East, a distance of 39.77 feet to an
angle point;
(6) North 74°47'07" East, a distance of 451.42 feet to an
angle point;
(7) North 55°38'57" East, a distance of 57.80 feet to an
angle point;
(8) North 22°37'44" East, a distance of 75.74 feet to an
angle point;
(9) North 12°53'38" West, a distance of 591.62 feet to the
south line of Lot 10 of Aaronglen Estates, map or plat thereof
recorded under Volume 9, Page 8 of the Liberty County Map Records
(L.C.M.R.), for a northerly corner of the herein described tract;
THENCE, North 76°29'43" East, along the north line of said Lot 10, a
distance of 18.00 feet to the northwest corner of a tract of land,
conveyed to Roman Guadalupe and Francella Martinez, as recorded
under L.C.C.F. No. 2020007603, and the northeast corner of the
herein described tract;
THENCE, South 12°36'14" East, along the west line of said Martinez
tract, common with the east line of said 49.51 acre tract, passing
at a distance of 488.82 feet a 5/8-inch iron rod found marking the
southwest corner of said Martinez tract, and continuing for a total
distance of 862.99 feet to a 1-inch iron pipe found marking the
southwest corner of Lot 12 of Whitewing Section II, map or plat
thereof recorded under Volume 8, Page 173, L.C.M.R. ;
THENCE, South 12°42'40" East, continuing along the east line of said
49.51 acre tract, passing at a distance of 1,624.04 feet the
southeast corner of said 49.51 acre tract, and continuing for a
total distance of 2,224.86 feet to an angle point;
THENCE, over and across the said Marilyn McCoy tracts, and the
aforesaid Tract 1 and Tract 2, conveyed to James A. Smesny, the
following
(1) South 38°44'04" West, a distance of 1,082.20 feet to an
angle point;
(2) South 28°06'28" West, a distance of 1,341.46 feet to an
angle point;
(3) South 15°01'13" West, a distance of 1,372.44 feet to an
angle point;
(4) South 01°54'04" East, a distance of 1,827.99 feet to an
angle point;
(5) South 20°23'43" East, a distance of 667.44 feet to the
north line of the aforesaid Tract 1, conveyed to Cedar Bayou Farms,
for the southeast corner of the herein described tract;
THENCE, South 77°03'37" West, along the north line of said Tract 1,
conveyed to Cedar Bayou Farms, a distance of 3,224.06 feet to the
POINT OF BEGINNING, and containing 605.3082 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,
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. (a) Section 4021.0311, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 4021, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 4021.0311 to read as follows:
Sec. 4021.0311. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
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, 2025.
Pos. No. Name of Director
1 Dez Carlson
2 Remard Mason
3 Kye Sampson
4 Anthony Hernandez
5 Kyle Clarke