89R22522 JTZ-F
By: Guillen H.B. No. 5692
A BILL TO BE ENTITLED
relating to the creation of the Palangana Energy District; 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 X, Title 6, Special District Local Laws
Code, is amended by adding Chapter 11023 to read as follows:
CHAPTER 11023. PALANGANA ENERGY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 11023.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "County" means Duval County.
(4) "Director" means a board member.
(5) "District" means the Palangana Energy District.
Sec. 11023.0102. NATURE OF DISTRICT. The Palangana Energy
District is a conservation and reclamation district created under
Section 59, Article XVI, Texas Constitution.
Sec. 11023.0103. 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, the legislature has
established a program to accomplish the public purposes set out in
Section 52-a, Article III, Texas Constitution.
Sec. 11023.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The district is created to serve a public use and benefit.
(b) The creation of the district is necessary to:
(1) accomplish essential public functions under the
constitution of this state that enhance energy security,
reliability, and resiliency in an environmentally responsible
manner;
(2) promote and diversify economic development and
commerce; and
(3) conserve, secure, and develop the natural energy
resources of this state for the benefit of the South Texas region
and this state.
(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. 11023.0105. 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. 11023.0106. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 11023.0107. 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. 11023.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five directors.
(b) The commission appoints the directors to positions
numbered one through five.
(c) Directors serve staggered four-year terms.
(d) The commission shall appoint directors from persons
recommended by the board.
(e) The board by resolution may change the number of
directors on the board, but only if the board determines that the
change is in the best interest of the district. The board may not
consist of fewer than 5 or more than 11 directors.
Sec. 11023.0202. ELIGIBILITY TO SERVE AS DIRECTOR. (a) A
director must meet the requirements provided by Section 375.063,
Local Government Code.
(b) A person who owns a partnership interest, whether
general or limited, or who has a lease with a remaining term of 30
years or more, excluding options, is considered to be an owner of
land for purposes of this chapter.
(c) A person who qualifies to serve on the board is
qualified to serve as a director and participate in all votes
pertaining to the business of the district.
Sec. 11023.0203. VACANCIES. Any vacancy occurring on the
board shall be filled for the unexpired term by appointment in the
manner in which the vacating director was appointed.
Sec. 11023.0204. REMOVAL OF DIRECTOR. The commission may
remove a director for misconduct or failure to carry out the
director's duties after a petition by a majority of the other
directors.
Sec. 11023.0205. COMPENSATION; REIMBURSEMENT. A director
is not entitled to compensation for service on the board but is
entitled to be reimbursed for necessary expenses incurred in
carrying out the duties and responsibilities of a director.
Sec. 11023.0206. INITIAL 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 according to the most recent certified tax appraisal roll
for the county may submit a petition to the commission requesting
that the commission appoint as initial directors the five persons
named in the petition. The commission shall appoint as initial
directors the five persons named in the petition.
(b) Each initial director serves until the date a successor
permanent director is appointed in the manner provided by Section
11023.0201. The commission may appoint an initial director to
serve as a permanent director if the initial director is eligible to
serve under Section 11023.0202.
Sec. 11023.0207. OFFICERS. At the first meeting of the
board after May 1 of each year, the board shall elect officers for
the district, including a chair, vice chair, secretary, and
treasurer.
Sec. 11023.0208. MEETINGS AND ACTIONS OF BOARD; QUORUM.
(a) The board may meet as many times each year as the board
considers appropriate.
(b) A majority of the membership of the board constitutes a
quorum at a meeting of the board.
(c) A concurrence of a majority of the directors present and
voting is sufficient for transacting any business of the district
unless other applicable law, or the district by rule, requires a
concurrence of a greater number of directors for a specific type of
decision.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 11023.0301. GENERAL POWERS AND DUTIES. (a) The
district has the powers and duties necessary to accomplish the
purposes for which the district is created.
(b) The district may sell, lease, convey, or otherwise
dispose of any right, interest, or property the district considers
to be unnecessary for the efficient operation or maintenance of the
district's facilities.
Sec. 11023.0302. 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. 11023.0303. ADDITIONAL INFRASTRUCTURE POWERS. (a) The
district may acquire, purchase, own, hold, lease, construct,
operate, repair, improve, maintain, extend, develop, and finance:
(1) groundwater wells or other sources of water
supply;
(2) water and wastewater works;
(3) drainage;
(4) road improvements;
(5) salt cavern solution mining and storage
facilities;
(6) facilities relating to the production,
transmission, or storage of natural gas or hydrogen; and
(7) facilities that generate, store, transmit, or
distribute electricity, including solar energy generation and
storage facilities.
(b) The district may not operate a facility described by
Subsection (a)(7) for the sale of electricity to an end user.
Sec. 11023.0304. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county, to provide law enforcement services in the
district for a fee.
Sec. 11023.0305. 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. 11023.0306. EMINENT DOMAIN. (a) The district may
exercise the power of eminent domain inside the district boundaries
to acquire a fee simple or other interest in property if the
interest is necessary for the district to exercise the rights or
authority conferred by this chapter, including for a purpose
described by Section 49.222, Water Code.
(b) The district must exercise the power of eminent domain
in the manner provided by Chapter 21, Property Code, except that the
district is not required to give bond for appeal or bond for costs
in a condemnation suit or other suit to which it is a party and is
not required to deposit more than the amount of the award in any
suit.
(c) The district may not exercise the power of eminent
domain outside the district boundaries.
Sec. 11023.0307. COOPERATIVE CONTRACTS. The district may
enter into an interlocal contract with a local government under
Chapter 791, Government Code, to carry out a power of the district.
Sec. 11023.0308. ADDING OR EXCLUDING LAND. Except as
provided by Section 11023.0309, 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. 11023.0309. 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) The board may adopt an order dividing the district
before or after the date the board holds an election to provide
authority for the issuance of bonds.
(f) 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.
(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
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. 11023.0310. OPTION OF SELECTION OF ELECTRICAL
PROVIDER. (a) The board of a district that is located in the
service area of more than one provider of electricity by resolution
may select the provider that may provide such services within the
entire territory of the district. The resolution must state the
effective date.
(b) As soon as practicable after the date a board resolution
under Subsection (a) is approved, the board shall file with each
affected provider and in the real property records of each county in
which the district is located a certified copy of the resolution.
(c) On the effective date of the resolution, the territory
in the district may be served only by the provider of retail
electrical services selected by the district for all purposes
related to the provision of retail electrical services. No action
or approval by any provider of retail electrical services not
selected by the district is required.
(d) This section applies only to the selection of a provider
of retail electrical services and not to a certificate of
convenience and necessity.
Sec. 11023.0311. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 11023.0312. DEVELOPMENT CORPORATION POWERS. The
district may create and use a development corporation under Chapter
501, Local Government Code, by acting as a unit under that chapter.
Sec. 11023.0313. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.
Section 375.161, Local Government Code, does not apply to the
district.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 11023.0401. GIFTS, GRANTS, LOANS, AND OTHER FUNDS.
The district may apply for, accept, receive, and administer gifts,
grants, loans, and other funds available from any source.
Sec. 11023.0402. 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 bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes, impact
fees, revenue, contract payments, grants, sales and use taxes,
other district money, or any combination of those sources to pay for
any authorized district purpose. The district may finance any
purchase or acquisition through a bond, note, or other obligation
or through a lease-purchase agreement.
(c) Subchapter F, Chapter 49, Water Code, does not apply to
the district.
(d) Section 54.5161, Water Code, does not apply to the
district.
(e) The district has the rights, powers, duties, and
obligations of an issuer under Chapter 1371, Government Code.
Sec. 11023.0403. BONDS, NOTES, AND OTHER OBLIGATIONS EXEMPT
FROM TAXATION. A bond, note, or other obligation issued under this
chapter, a transaction related to the bond, note, or other
obligation, the interest on the bond, note, or other obligation,
and the profit from the sale of the bond, note, or other obligation
are exempt from taxation by this state or a political subdivision of
this state.
Sec. 11023.0404. 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.
SUBCHAPTER E. ASSESSMENTS
Sec. 11023.0501. 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. 11023.0502. 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 F. TAXES AND BONDS
Sec. 11023.0601. 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. 11023.0602. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election under Section 11023.0601, 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. 11023.0603. 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. 11023.0604. BONDS SECURED BY AD VALOREM TAXES;
ELECTIONS. (a) If authorized at an election under Section
11023.0601, 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.
(d) 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. 11023.0605. 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.
Sec. 11023.0606. CONSENT OF MUNICIPALITY REQUIRED. (a)
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.
(b) This section applies only to the district's first
issuance of bonds payable from ad valorem taxes.
Sec. 11023.0607. AUTHORIZED INVESTMENTS; SECURITY FOR
FUNDS. (a) All bonds, notes, and other obligations issued by the
district shall be legal and authorized investments for all banks,
trust companies, building and loan associations, savings and loan
associations, insurance companies of all kinds and types,
fiduciaries, and trustees, and for all interest and sinking funds
and other public funds of the state, and all agencies,
subdivisions, and instrumentalities of the state, including all
counties, cities, towns, villages, school districts, and all other
kinds and types of districts, public agencies, and bodies politic.
(b) The district's bonds, notes, and other obligations are
eligible and lawful security for all deposits of public funds of the
state, and all agencies, subdivisions, and instrumentalities of the
state, including all counties, cities, towns, villages, school
districts, and all other kinds and types of districts, public
agencies, and bodies politic, to the extent of the market value of
the bonds, notes, and other obligations when accompanied by any
unmatured interest coupons attached to them.
(c) The district's bonds are negotiable instruments within
the meaning and purposes of the Business & Commerce Code. The
district's bonds may be issued and bear interest in accordance with
Chapters 1201, 1204, and 1371, Government Code, and Subchapters
A-C, Chapter 1207, Government Code.
SUBCHAPTER G. SALES AND USE TAX
Sec. 11023.0701. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
computation, administration, enforcement, and collection of the
sales and use tax authorized by this subchapter except to the extent
Chapter 321, Tax Code, is inconsistent with this chapter.
(b) A reference in Chapter 321, Tax Code, to a municipality
or the governing body of a municipality is a reference to the
district or the board, respectively.
Sec. 11023.0702. ELECTION; ADOPTION OF TAX. (a) The
district may adopt a sales and use tax if authorized by a majority
of the voters of the district voting at an election held for that
purpose.
(b) The board by order may call an election to authorize the
adoption of the sales and use tax. The election may be held on any
uniform election date and in conjunction with any other district
election.
(c) The ballot shall be printed to provide for voting for or
against the proposition: "Authorization of a sales and use tax in
the Palangana Energy District at a rate not to exceed ____ percent"
(insert rate of one or more increments of one-eighth of one
percent).
Sec. 11023.0703. SALES AND USE TAX RATE. (a) On or after
the date the results are declared of an election held under Section
11023.0702 at which the voters approved imposition of the tax
authorized by this subchapter, the board shall determine and adopt
by resolution or order the initial rate of the tax, which must be in
one or more increments of one-eighth of one percent.
(b) After the authorization of a tax under Section
11023.0702, the board may increase or decrease the rate of the tax
by one or more increments of one-eighth of one percent.
(c) The board may not decrease the rate of the tax if the
decrease would impair the repayment of any outstanding debt or
obligation payable from the tax.
(d) The initial rate of the tax or any rate resulting from
subsequent increases or decreases may not exceed the lesser of:
(1) the maximum rate authorized by the district voters
at the election held under Section 11023.0702; or
(2) a rate that, when added to the rates of all sales
and use taxes imposed by other political subdivisions with
territory in the district, would result in the maximum combined
rate prescribed by Section 321.101(f), Tax Code, at any location in
the district.
(e) In determining whether the combined sales and use tax
rate under Subsection (d)(2) would exceed the maximum combined rate
prescribed by Section 321.101(f), Tax Code, at any location in the
district, the board shall include:
(1) any sales and use tax imposed by a political
subdivision whose territory overlaps all or part of the district;
(2) any sales and use tax to be imposed by the county
or a municipality in which the district is located as a result of an
election held on the same date as the election held under Section
11023.0702; and
(3) any increase to an existing sales and use tax
imposed by the county or a municipality in which the district is
located as a result of an election held on the same date as the
election held under Section 11023.0702.
(f) If the district adopts a sales and use tax authorized at
an election under Section 11023.0702 and subsequently includes new
territory in the district, the district:
(1) is not required to hold another election to
approve the imposition of the sales and use tax in the included
territory; and
(2) shall impose the sales and use tax in the included
territory as provided by Chapter 321, Tax Code.
(g) If the district adopts a sales and use tax authorized at
an election under Section 11023.0702 and subsequently excludes
territory in the district, the sales and use tax is inapplicable to
the excluded territory as provided by Chapter 321, Tax Code, but is
applicable to the territory remaining in the district.
Sec. 11023.0704. TAX AFTER MUNICIPAL ANNEXATION. (a) This
section applies to the district after a municipality annexes part
of the territory in the district and imposes the municipality's
sales and use tax in the annexed territory.
(b) If at the time of annexation the district has
outstanding debt or other obligations payable wholly or partly from
district sales and use tax revenue, Section 321.102(g), Tax Code,
applies to the district.
(c) If at the time of annexation the district does not have
outstanding debt or other obligations payable wholly or partly from
district sales and use tax revenue, the district may:
(1) exclude the annexed territory from the district,
if the district has no outstanding debt or other obligations
payable from any source; or
(2) reduce the sales and use tax in the annexed
territory by resolution or order of the board to a rate that, when
added to the sales and use tax rate imposed by the municipality in
the annexed territory, is equal to the sales and use tax rate
imposed by the district in the district territory that was not
annexed by the municipality.
Sec. 11023.0705. NOTIFICATION OF RATE CHANGE. The board
shall notify the comptroller of any changes made to the tax rate
under this subchapter in the same manner the municipal secretary
provides notice to the comptroller under Section 321.405(b), Tax
Code.
Sec. 11023.0706. USE OF REVENUE. Revenue from the sales and
use tax imposed under this subchapter is for the use and benefit of
the district and may be used for any district purpose. The district
may pledge all or part of the revenue to the payment of bonds,
notes, or other obligations, and that pledge of revenue may be in
combination with other revenue, including tax revenue, available to
the district.
Sec. 11023.0707. ABOLITION OF TAX. (a) Except as provided
by Subsection (b), the board may abolish the tax imposed under this
subchapter without an election.
(b) The board may not abolish the tax imposed under this
subchapter if the district has any outstanding debt or obligation
secured by the tax, and repayment of the debt or obligation would be
impaired by the abolition of the tax.
(c) If the board abolishes the tax, the board shall notify
the comptroller of that action in the same manner the municipal
secretary provides notice to the comptroller under Section
321.405(b), Tax Code.
(d) If the board abolishes the tax or decreases the tax rate
to zero, a new election to authorize a sales and use tax must be held
under Section 11023.0702 before the district may subsequently
impose the tax.
SUBCHAPTER I. DISSOLUTION
Sec. 11023.0901. DISSOLUTION. (a) The board shall
dissolve the district on written petition filed with the board by
the owners of at least two-thirds of the assessed value of the
property subject to assessment or taxation by the district based on
the most recent certified county property tax rolls.
(b) The district may not be dissolved by its board under
Subsection (a) 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.
(c) Sections 375.261, 375.262, and 375.264, Local
Government Code, do not apply to the district.
SECTION 2. The Palangana Energy District initially includes
all territory contained in the following area:
TRACT 1 (3,086.793 acres):
Being 3762.302 acres of land, more or less, excluding 670.379
acres of land, more or less, out of the Eusebio Carrillo Survey 82,
Abstract No. 1702 and excluding 5.13 acres of land of surface
estate, more or less, being the total of the 0.11 acres, 3.46 acres
and 1.17 acres recorded in Volume 254, Page 446, Deed Records of
Duval County, Texas and the 0.39 acres recorded in Volume 274, Page
15, D.R.D.C.T. lying within the 120 foot wide fenced area around
F.M. 3196, leaving a net acreage of 3086.793 acres of land, more or
less, said 3086.793 acres including 20.798 acres lying within the
120 foot wide fenced in area around F.M. 3196 and being all the
called 3100.64 acre tract recorded in Volume 61, Page 285, Deed
Records of Duval County, Texas, which tract is located
approximately 4 miles north of Benavides, Texas and 12 miles
southwest of San Diego Texas and being a portion of the tract of
land known as the Palangana Pasture in Duval County, Texas allotted
to Mrs. Lizzie Singer under the terms of the will of Mrs. Anna
Collins, deceased, and decree of the District Court of Nueces
County, Texas and being Share 4 out of Parcel F Second (sometimes
referred to in the Record as being out of Parcel F, First and Parcel
F, Second) and which decree is recorded in Volume Z, Page 314, Deed
Records of Duval County, Texas and this 3762.302 acre tract being
more particularly described by metes and bounds as follows;
Beginning at a found timber corner post being the southwest
corner of said Share 3, Parcel F, Second allotted to Robert
Schallert for the northwest corner of this tract and said corner
having a State Plane Grid Coordinate of N 17,135,158.96', E
1,005,006.90', NAD'83, Texas South Zone in U.S. feet;
Thence S 00-47-55 E with the west boundary of this tract and
S.K. & K Survey 247, Abstract No. 548, 3081.26 feet, to a found
timber fence corner post for a slight turning point on said fence;
Thence S 00-26-55 E with the west boundary of this tract and
the west boundary of said Survey 247 and G. H.&H.R.R. Survey 79,
Abstract No. 250, 2312.56 feet, to a found timber fence corner post
for a southwest corner of this tract, the same being the southeast
corner of John A Dix Survey 80, Abstract No. 1470 and the northeast
corner of N. Gutierez Survey 6, Abstract No. 662;
Thence N 89-21-36 E with a south boundary of this tract,
625.00 feet, to a set 5/8-inch iron rod for an inside corner of this
tract;
Thence S 01-00-18 E with a west boundary of this tract,
2804.69 feet, to a set 5/8-inch iron rod for an interior corner of
this tract;
Thence S 88-58-56 W with a north boundary of this tract,
625.00 feet, to a found pointed mesquite fence corner post for a
corner of this tract and the southeast corner of the N. Gutieriez
Survey 6, Abstract No. 662, the same being the northeast corner of
the Jose Ma. Saens Survey 23, Abstract No. 509;
Thence S 00-04-45 W with a west boundary of this tract, the
same being the west boundary of said G.H. & H.R.R. Survey 79,
Abstract No. 250, 275.35 feet, to a found timber fence corner post
for a southwest corner of this tract and said Survey79, the same
being the northwest corner of the Jose Ma. Vela Survey 22, Abstract
No. 616;
Thence S 89-42-18 E with a south boundary of this tract, the
same being the common boundary between Surveys 79 and 22, 2688.37
feet, to a fence steel corner post for a corner of this tract and
said Survey 79 and the northeast corner of said Survey 22;
Thence S 01-16-25 E with a west boundary of this tract and
said Survey 79, the same being the east boundary of Survey 22,
417.05 feet, to a found steel fence corner post for a corner of this
tract, the same being the northwest corner of the S. Estringel
Survey 21, Abstract No. A-209 for a corner of this tract and said
Survey 79;
Thence N 89-49-48 E with the south boundary of this tract and
said Survey 79, the same being the north boundary of said Survey 21,
2,698.56 feet, to a found steel fence corner post for an inside
corner of this tract, the same being the southeast corner of Survey
79 and the northeast corner of Survey 21;
Thence S 00-13-02 E with a west boundary of this tract and the
Geo. Cumberland Survey No. 4, Abstract No. 175, the Antonio Vela
Survey 25, Abstract No. 615, the same being the east boundary of
Survey 21, 2713.80 feet to a found timber fence corner post for a
corner of this tract and the southeast corner of Survey 21 and a
corner of the Garza Irrigation and Manufacturing Survey 593,
Abstract 664;
Thence S 00-39-38 E, 397.68 feet, to a found timber fence
corner post for the southwest corner the Antonio Vela Survey 25,
Abstract No. 615, the same being a corner of said Survey 593;
Thence S 01-24-22 W with the west boundary of this tract,
1746.24 feet, to a found timber corner post for the southmost
southwest corner of this tract, said corner being the northwest
corner of the Marcos Villareal Survey 52, Abstract No. 1520 and a
corner of said Survey 593;
Thence N 89-04-12 E with the south boundary of this tract and
said Survey 593, 4,008.83 feet, to a found timber fence corner post
on the west fence line of F.M. 3196 for a southeast corner of this
tract;
Thence N 03-55-20 W with the east boundary of this tract along
a fence line on the west side of F.M. 3196, 1695.60 feet, to a found
timber fence corner post for a northeast corner of this tract;
Thence S 89-45-00 W with the most southerly north boundary of
this tract, the same being the south boundary of the Nestor Garza
Survey 47, Abstract No. 275, 1165.58 feet, to a found timber fence
corner post for an interior corner of this tract and the common
corner of said Surveys 47 and 25;
Thence N 00-15-00 W with an east boundary of this tract and
the west boundary of said Survey 47, the same being the east
boundary of Survey 25, 2724.39 feet, to a found timber fence corner
post for an interior corner of this tract and the northeast corner
of said Survey 25 and the northwest corner of said Survey 47, said
corner being on the south boundary of the Geo Cumberland Survey
No. 4, Abstract No. 175;
Thence N 89-48-59 E with a south boundary of this tract, the
same being the south boundary of said Survey No. 4, passing F.M.
3196, in all 8,615.88 feet, to a found 1-1/2 inch iron pipe for the
east most southeast corner of this tract and the southeast corner of
said Survey 4;
Thence N 00-16-59 E with the east boundary of this tract and
said Survey No. 4, 9,149.76 feet, to a found timber fence corner
post for the northeast corner of this tract, the same being the
southeast corner of said Share 3, Parcel F, Second;
Thence N 89-37-13 W with the north boundary of this tract,
16,854.30 feet, to the point of beginning and containing 3762.302
acres of land, more or less, excluding the aforementioned 670.379
acre tract out of the Eusebio Carrillo Survey 82, Abstract No. 1702
and also excluding the 5.13 acres of surface estate lying within the
boundary fence of F.M. 3196, leaving a net acreage of 3086.793
acres.
Excluded 670.379 Acre Tract (Carrillo Survey 82 Tract):
Beginning at a 5/8-inch iron rod found for the northeast
corner of said Survey 82, said corner having a State Plane Grid
Coordinate of N 17,133,663.97', E 1,015,463.27', NAD,83, Texas
South Zone in U. S feet and from whence the found timber fence
corner post for the northeast corner of the above described
3762.302 acre tract bears N 77-47-57 E, 6,545.40 feet;
Thence S 00-15-29 E with the east boundary of this tract and
said Survey 82, the same being a west boundary of the Geo.
Cumberland Survey 4, Abstract No. 175, at 5,149.47 feet, pass a
found 4-inch timber cedar post on the fence on the west side of F.M.
3196 , said cedar fence post being the north corner of a 0.21 acre
surface estate recorded in Volume 253, Page 288, Deed Records of
Duval County, Texas, in all 5392.29 feet to the southeast corner of
this tract and said Survey 82 and said 0.21 acre tract, the same
being an inside corner of the G. Cumberland Survey No. 4;
Thence S 89-23-04 W with the south boundary of this tract and
said Survey 82 and said 0.21 acre tract, the same being the
southmost north boundary line of said Survey 4, at 42.93 feet pass a
fence corner post on the west fence of F.M. 3196, said corner also
being the west corner of said 0.21 acre surface estate, in all
5,403.55 feet, to a found timber fence corner post for the southwest
corner of this tract and said Survey 82;
Thence N 00-28-15 W with the west boundary of this tract and
said Survey 82, 5,394.46 feet, to a found steel corner post for the
northwest corner of this tract and said Survey 82;
Thence N 89-24-30 E with the north boundary of this tract and
said Survey 82, 5,423.57 feet, to the point of beginning and
containing 670.379 acres of land, more or less, save and except said
0.21 acres of said surface estate conveyed to the State of Texas,
leaving a net acreage of 670.169 acres
TRACT 2 (1,458.468 acres):
BEING 1,458.468 ACRES OF LAND, MORE OR LESS, OUT OF J.
POITEVENT SURVEY, SECTION NO. 10, ABSTRACT NO. 881; J. POITEVENT
SURVEY, SECTION NO. 10, ABSTRACT NO. 977; J. POITEVENT SURVEY,
SECTION NO. 10, ABSTRACT NO. 998; J. POITEVENT SURVEY, SECTION NO.
11, ABSTRACT NO. 674; THE SOUTH ONE HALF OF SK&K SURVEY, SECTION NO.
242, ABSTRACT NO. 1240; JAMES BROYLES SECTION NO. 245, ABSTRACT NO.
948; J.C. MEGERLE RANCH, RECORDED IN VOLUME 140, PAGE 501, DEED
RECORDS OF DUVAL COUNTY, TEXAS, AND THIS 1,458.468 ACRES OF LAND
BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
COMMENCING AT A SET 5/8" IRON ROD, SAID IRON ROD BEING THE
SOUTHEAST CORNER OF THE SA&MG RR CO SURVEY, SECTION NO. 88, ABSTRACT
NO. 1649 AND BEING ON THE WEST BOUNDARY LINE OF SA&MG RR CO SURVEY,
SECTION NO. 84, ABSTRACT NO. 932 AND BEING THE NORTHEAST CORNER OF
THIS TRACT;
THENCE S 00°31'55" E WITH FENCE AND WEST LINE OF SAID SECTION
NO. 84 A DISTANCE OF 2,178.13 FEET TO A FOUND 5/8" IRON ROD, BEING
THE SOUTHWEST CORNER OF SECTION NO. 84 AND AN INTERIOR CORNER OF
SAID J. POITEVENT SURVEY, SECTION 10, ABSTRACT NO. 881 AND A CORNER
OF THIS TRACT;
THENCE S 47°22'24" W WITH FENCE AND A DISTANCE 5,737.96 FEET
TO A FOUND 5/8" IRON ROD, BEING THE SOUTHEAST CORNER OF THIS TRACT;
THENCE S 89°53'40" W WITH FENCE AND A DISTANCE OF 4,188.97 TO A
SET 5/8" IRON ROD , BEING INTERIOR CORNER OF THIS TRACT;
THENCE S 00°11'27" E A DISTANCE OF 3,248.10 FEET TO A FOUND 1"
IRON PIPE LYING WITHIN IN THE RIGHT OF WAY OF THE TEX-MEX RAIL ROAD
ON THE WEST SIDE OF RAIL ROAD TRACKS, SAID IRON ROD BEING THE
SOUTHERLY SOUTHEAST CORNER OF THIS TRACT;
THENCE N 80°56'27" W A DISTANCE OF 2,641.38 FEET TO A FOUND 1"
IRON PIPE, THE SOUTHEAST CORNER OF GEORGE CUMBERLAND SURVEY,
SECTION NO. 4, ABSTRACT NO. 175 AN INTERIOR CORNER OF SAID SECTION
245 AND THE SOUTHWEST CORNER OF THIS TRACT;
THENCE N 00°18'02" E WITH FENCE ON THE EAST BOUNDARY LINE OF
SAID SECTION NO. 4 AND WEST BOUNDARY LINE OF SAID SECTION NO. 245
AND SOUTH HALF OF SECTION NO. 242, A DISTANCE OF 8,414.70 FEET TO A
FOUND 1" IRON PIPE, THE NORTH WEST CORNER OF SECTION NO. 242 AND THE
MOST WESTERLY NORTHWEST CORNER OF THIS TRACT;
THENCE N 89°12'34" E WITH FENCE AND SOUTH LINE OF THE NORTH
HALF OF SK&K SURVEY, SECTION NO. 242, ABSTRACT NO. 1651 AND NORTH
LINE OF SOUTH HALF OF SECTION NO. 242, A DISTANCE OF 5,623.26 FEET
TO A FOUND 1" IRON PIPE FOR AN INTERIOR CORNER OF THIS TRACT;
THENCE N 00°34'44" W WITH FENCE AND A DISTANCE OF 333.55 FEET
TO A FOUND 1" IRON PIPE, AND BEING THE MOST NORTHERLY NORTHWEST
CORNER OF THIS TRACT;
THENCE N 89°09'35" E WITH FENCE AND SOUTH BOUNDARY LINE OF
SAID SECTION NO. 88 AND NORTH BOUNDARY LINE OF SAID SECTION NO. 10;
ABSTRACT NO. 977, 998 AND 881 A DISTANCE OF 5,325.32 FEET TO THE
PLACE OF BEGINNING AND CONTAINING 1,458.468 ACRES OF LAND, MORE OR
LESS, OF WHICH 34.529 ACRES ARE WITHIN THE RAIL ROAD R.O.W.
TRACT 3 (169.830 acres):
Field notes of a 169.830 acre tract described in a deed
recorded in Volume 547, Page 813, Official Records Duval County,
Texas. Said 169.830 acre tract being out of Survey No. 82,
Certificate 31/184, G.H. & H., Original Grantee, Abstract No. 1702,
Duval County, Texas. Said 169.830 acre tract being more
particularly described as follows:
BEGINNING at a cotton spindle set at the southeast corner of
said Abstract No. 1702, in the northwest right of way of Farm to
Market 3196, for an inside corner of the G. Cumberland Survey,
Abstract 175, and for the southeast corner of this survey.
THENCE with the common line of said Abstracts 1702 and 175,
and this survey, South 89°26'23" West, a distance of 3680.56 feet to
a 5/8" re-bar set in the common line of said Abstracts 1702 and 175,
and for the southwest corner of this survey.
THENCE across said Abstract 1702, North 00°33'37" West, a
distance of 416.67 feet to a 5/8" re-bar set for an outside corner
of this survey.
THENCE across said Abstract 1702, North 89°26'23" East, a
distance of 1041.67 feet to a 5/8" re-bar set for an inside corner
of this survey.
THENCE across said Abstract 1702, North 00°33'37" West, a
distance of 2222.23 feet to a 5/8" re-bar set for the northwest
corner of this survey.
THENCE across said Abstract 1702, North 89°26'23" East, a
distance of 2638.89 feet to a 5/8" re-bar set for the northeast
corner of this survey.
THENCE across said Abstract 1702, South 00°33'37" East, a
distance of 2638.89 feet to the POINT of BEGINNING of this survey,
and containing 169.830 acres of land, more or less.
TRACT 4 (9.733 acres):
Field notes of a 9.733 acre tract described in a deed recorded
in Volume 547, Page 813, Official Records Duval County, Texas. Said
9.733 acre tract being out of Survey No. 82, Certificate 31/184,
G.H. & H., Original Grantee, Abstract No. 1702, Duval County,
Texas. Said 9.733 acre tract being more particularly described as
follows:
COMMENCING at a cotton spindle set at the southeast corner of
said Abstract No. 1702, in the northwest right of way of Farm to
Market 3196, for an inside corner of the G. Cumberland Survey,
Abstract 175, and for the southeast corner of a 169.830 acre tract
surveyed this day by Brister Surveying,
THENCE with the common line of said Abstracts 1702 and 175,
and said 169.830 acre tract, South 89°26'23" West, at a distance of
3680.56 feet pass a 5/8" re-bar set in the common line of said
Abstracts 1702 and 175, and for the southwest corner of said 169.830
acre tract, and in all a total distance of 5035.56 feet to a point,
THENCE North 00°33'37" West a distance of 734.72 feet to a
point,
THENCE South 73°48'37" East, a distance of 177.78 feet to a
point for the west corner of this survey and for the POINT of
BEGINNING.
THENCE across said Abstract 1702, North 31°11'23" East, a
distance of 452.78 feet to a point for the north corner of this
survey.
THENCE across said Abstract 1702, South 73°48'37" East, a
distance of 969.45 feet to a point for the east corner of this
survey.
THENCE across said Abstract 1702, South 31°11'23" West, a
distance of 452.78 feet to a point for the south corner of this
survey.
THENCE across said Abstract 1702, North 73°48'37" West, a
distance of 969.45 feet to the POINT of BEGINNING of this survey,
and containing 9.733 acres of land, more or less.
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 11023.0306, 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 11023, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 11023.0306 to read as follows:
Sec. 11023.0306. 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.