By:  Jackson                                                      S.B. No. 1808

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Galveston County Municipal Utility District No. 54; providing authority to impose taxes and assessments and issue bonds; granting the 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 8147 to read as follows:
CHAPTER 8147. GALVESTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 54
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8147.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "City" means the City of Texas City, Texas. (3) "Director" means a member of the board. (4) "District" means the Galveston County Municipal Utility District No. 54. Sec. 8147.002. NATURE OF DISTRICT. The district is a municipal utility district in Galveston County created under and essential to accomplish the purposes of Sections 52 and 52-a, Article III, Section 1-g, Article VIII, and Section 59, Article XVI, Texas Constitution. Sec. 8147.003. CONFIRMATION ELECTION REQUIRED. The board shall hold an election to confirm the creation of the district as provided by Section 49.102, Water Code. Sec. 8147.004. 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, Section 1-g, Article VIII, and Section 59, Article XVI, Texas Constitution. (b) The district is created for the same purposes as: (1) a municipal utility district as provided by Section 54.012, Water Code; (2) a road utility district created under Section 52, Article III, Texas Constitution, and operating under Chapter 441, Transportation Code, including the purpose of constructing, acquiring, improving, maintaining, and operating roads and road facilities; (3) a municipal management district operating under Chapter 375, Local Government Code; and (4) the purchase, construction, acquisition, ownership, improvement, maintenance, and operation of the public works and public improvements authorized for a tax increment reinvestment zone operating under Chapter 311, Tax Code. Sec. 8147.005. 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 or collect an assessment or tax; or (4) legality or operation. Sec. 8147.006. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes set forth in this chapter.
[Sections 8147.007-8147.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8147.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors. (b) Except as provided by Section 8147.053, directors serve staggered four-year terms. Sec. 8147.052. ELECTION OF DIRECTORS. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected. Sec. 8147.053. INITIAL DIRECTORS. (a) The initial board consists of: (1) Shirley McLennan; (2) Greg Ordeneaux; (3) Amy Zapletal; (4) Terri Schoener; and (5) Scott Bean. (b) The terms of the first three directors named in Subsection (a) expire on the uniform election date in May of 2006, and the terms of the last two directors named in Subsection (a) expire on the uniform election date in May of 2008. (c) This section expires September 1, 2009.
[Sections 8147.054-8147.100 reserved for expansion]
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 8147.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8147.102. 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. 8147.103. MUNICIPAL MANAGEMENT DISTRICT POWERS. The district has the powers and duties provided by the general law of this state, including Chapter 375, Local Government Code, applicable to municipal management districts created under Section 59, Article XVI, Texas Constitution. Sec. 8147.104. TAX INCREMENT REINVESTMENT ZONE. (a) All or any part of the area of the district is eligible to be included in a tax increment reinvestment zone created under Chapter 311, Tax Code. (b) The district may enter into a contract with the board of directors of a reinvestment zone and the governing body of the city that provides for the district to manage or assist in managing the reinvestment zone or to implement or assist in implementing the reinvestment zone's project plan and reinvestment zone financing plan. The contract may require the district to issue bonds or other obligations and pledge the contract revenues to the payment of the bonds or other obligations. Sec. 8147.105. EMINENT DOMAIN. (a) Except as provided by Subsection (b), the district may exercise the power of eminent domain as provided by Section 49.222, Water Code. (b) The district must obtain the written consent of the city before exercising the power of eminent domain.
[Sections 8147.106-8147.150 reserved for expansion]
SUBCHAPTER D. ADDITIONAL ROAD POWERS
Sec. 8147.151. ROAD PROJECTS. (a) As authorized by Section 52, Article III, Texas Constitution, the district may construct, acquire, improve, maintain, or operate, inside and outside the district, roads and road facilities as defined by Chapter 441, Transportation Code. (b) The roads and road facilities authorized by Subsection (a) may include drainage, landscaping, pedestrian improvements, lights, signs, or signals that are incidental to the roads and their construction, maintenance, or operation. (c) The roads and road facilities authorized by this section must meet all applicable construction standards, zoning and subdivision requirements, and regulatory ordinances of the city. (d) On completion of a road or road facility authorized by this section, the district, with the consent of the city, may convey the road or road facility to the city if the conveyance is free of all indebtedness of the district. If the city becomes the owner of a road or road facility, the city is responsible for all future maintenance and upkeep and the district has no further responsibility for the road or road facility or its maintenance or upkeep, unless otherwise agreed to by the district and the city. Sec. 8147.152. JOINT ROAD PROJECTS. (a) A district may contract with a state agency, political subdivision, or corporation created under Chapter 431, Transportation Code, for a joint road project. (b) The contract may: (1) provide for joint payment of project costs; and (2) require the state agency, political subdivision, or corporation to design, construct, or improve a project as provided by the contract. (c) A contract may be a contract under Section 49.108, Water Code. Sec. 8147.153. REIMBURSEMENT FOR ROAD PROJECT. (a) The district may: (1) reimburse a private person for money spent to construct a road or road facility that is dedicated or otherwise transferred to public use; or (2) purchase a road or road facility constructed by a private person. (b) The amount paid for the reimbursement or for the purchase of a road or road facility under Subsection (a) may: (1) include all construction costs, including engineering, legal, financing, and other expenses incident to the construction; or (2) be at a price not to exceed the replacement cost of the road or road facility as determined by the board. (c) The reimbursement or purchase of a road or road facility may be paid for with proceeds from the sale of the district's bonds or from any other money available to the district. (d) The district may enter into an agreement to use the proceeds of a subsequent bond sale to reimburse a private person under this section. The agreement may provide the terms and conditions under which the road or road facility is to be dedicated or transferred for the benefit of the public.
[Sections 8147.154-8147.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8147.201. ELECTIONS REGARDING TAXES OR BONDS. (a) The district may issue, without an election, bonds and other obligations secured by revenue or contract payments from any lawful source other than ad valorem taxation. (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 a maintenance tax or issue bonds payable from ad valorem taxes. (c) The board may include more than one purpose in a single proposition at an election. (d) The district may issue bonds or other obligations to finance road projects under Section 52(b)(3), Article III, Texas Constitution, secured wholly or partly by ad valorem taxation, impose ad valorem taxes to pay the principal of and interest on the obligations, and provide a sinking fund for the redemption of the obligations only if the issuance is approved by a two-thirds majority of the voters of the district voting at an election called and held for that purpose. The total amount of bonds issued under this subsection may not exceed one-fourth of the assessed market value of real property of the district as determined by the chief appraiser of the appraisal district that appraises property for the district. Sec. 8147.202. AD VALOREM TAX. (a) If authorized at an election held under Section 8147.201, the district may impose an annual ad valorem tax on taxable property in the district for the provision of services or for the maintenance and operation of the district, including the construction, acquisition, maintenance, and operation of improvements. (b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. Sec. 8147.203. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, or maintain any improvement or service authorized under this chapter using any money available to the district. Sec. 8147.204. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS. (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 requesting a project financed by assessment must be signed by: (1) 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; or (2) at least 50 owners of real property in the district that will be subject to the assessment, if more than 50 persons own real property subject to the assessment in the district according to the most recent certified tax appraisal roll for the county. Sec. 8147.205. METHOD OF NOTICE FOR HEARING. The district may mail notice of public hearings to property owners subject to assessment by certified United States mail or an equivalent service that can provide a record of mailing or other delivery. Sec. 8147.206. 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. (e) Except as provided by this chapter, Subchapter F, Chapter 375, Local Government Code, applies to assessments imposed by the district. Sec. 8147.207. UTILITIES. The district may not impose an impact fee or assessment on the property, equipment, rights-of-way, facilities, or improvements of: (1) an electric utility as defined by Section 31.002, Utilities Code; (2) a gas utility as defined by Section 101.003 or 121.001, Utilities Code; (3) a telecommunications provider as defined by Section 51.002, Utilities Code; or (4) a cable operator as defined by 47 U.S.C. Section 522, as amended.
[Sections 8147.208-8147.250 reserved for expansion]
SUBCHAPTER F. BONDS AND OTHER OBLIGATIONS
Sec. 8147.251. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose. (b) In exercising the district's borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation, or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation. Sec. 8147.252. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued: (1) the board shall impose 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; and (2) the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to: (A) pay the interest on the bonds or other obligations as the interest becomes due; (B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and (C) pay the expenses of imposing the taxes. Sec. 8147.253. BONDS FOR CONTRACT COSTS. If the district enters into a contract under Section 8147.152, the district may issue bonds to pay all or part of the costs of the joint road project and any other payments required under the contract. Sec. 8147.254. BONDS PAYABLE FROM REVENUE FROM CERTAIN CONTRACTS. The district may issue bonds payable wholly or partly from the revenue of a contract authorized by Section 8147.104(b) to pay for the implementation of the reinvestment zone's project plan or reinvestment zone financing plan. Sec. 8147.255. AUTHORITY OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY OVER ISSUANCE OF DISTRICT BONDS. (a) Sections 49.181 and 49.182, Water Code, apply to all water, wastewater, drainage, and recreational facility projects of the district and bonds issued for those purposes. (b) Section 49.181, Water Code, applies to all road and road facility projects and bonds issued for those purposes, but the review of the Texas Commission on Environmental Quality of the projects is limited to the financial feasibility of the projects and bonds, and does not include the review or approval of the design and construction of the projects or the engineering feasibility of the projects. The commission shall adjust the requirements of written applications for investigation of feasibility in accordance with this subsection. (c) Section 49.182, Water Code, does not apply to road and road facility projects or bonds issued for those purposes. (d) To the extent that the district issues bonds secured solely by revenues provided under a contract described in Section 8147.104(b), Sections 49.181, 49.182, and 49.4645, Water Code, do not apply to the issuance of the bonds and do not restrict the types of facilities or improvements that may be financed with the bonds. (e) Projects and bonds of the district are not subject to the review and approval of the Texas Transportation Commission or the rules adopted by the Texas Transportation Commission. Sec. 8147.256. APPLICABILITY OF OTHER BOND LAW. Chapter 1471, Government Code, does not apply to the district. SECTION 2. The Galveston County Municipal Utility District No. 54 initially includes all the territory contained in the following area: BEING 212.06 acres of land situated in the Alexander Farmer League, Abstract No. 11, Galveston County, Texas, being out of a called 2,052.761 acre tract of land recorded under Galveston County Clerk's File Number 2000027987 and a portion of Holland Road recorded under Volume 1199, Page 407 of the Galveston County Deed Records, said 212.06 acre tract being more particularly described by metes and bounds as follows with the basis of bearings being the Texas State Plane Coordinate System, South Central Zone: BEGINNING at a 5/8-inch iron rod with cap stamped "Hovis Surveying" found for the most northerly corner of said called 2,052.761 acre tract, being in the east line of Interurban Gardens, a subdivision recorded in Volume 223, Page 207 of the Galveston County Map Records and in the south right-of-way line of Interstate Highway 45 (Width Varies), from which a found disturbed 5/8-inch iron rod bears S 40° 53' E, 1.22 feet and a found 5/8-inch iron rod bears S 02° 01' E, 6.82 feet; THENCE with the southwesterly right-of-way line of Interstate Highway 45 (Width Varies) as follows: S 42° 38' 35" E, a distance of 1,594.72 feet to a point for corner and point of curve; In a southerly direction, 558.46 feet, with the arc of a curve to the right, having a radius of 533.69 feet, a central angle of 59° 57' 19" and chord which bears S 12° 26' 02" E, 533.33 feet to a broken TxDOT monument found for corner; S 17° 32' 12" W, a distance of 51.06 feet to a TxDOT monument found for corner and point of curve, from which a found 5/8-inch iron rod bears S 73° 23' W, 2.05 feet; In a southerly direction, 185.89 feet, with the arc of a curve to the left, having a radius of 423.06 feet, a central angle of 25° 10' 32" and chord which bears S 04° 30' 42" W, 184.40 feet to a TxDOT monument found for corner, from which a found 5/8-inch iron rod bears S 89° 02' W, 0.98 feet; S 07° 34' 27" E, a distance of 35.11 feet to a broken TxDOT monument found for corner; S 46° 19' 11" W, a distance of 49.82 feet to a broken TxDOT monument found for corner from which a found 5/8-inch iron rod bears N 66° 13' W, 0.70 feet; S 01° 26' 48" E, a distance of 80.39 feet to a to a TxDOT monument found for corner; S 59° 51' 01" E, a distance of 99.95 feet to a TxDOT monument found for corner; S 29° 02' 56" E, a distance of 38.17 feet to a TxDOT monument found for corner and point of curve from which a found 5/8-inch iron rod bears S 09°48' E, 5.28 feet; In a southeasterly direction, 480.47 feet, with the arc of a curve to the left, having a radius of 423.06 feet, a central angle of 65° 04' 17" and chord which bears S 60° 14' 11" E, 455.06 feet to a TxDOT monument found for a corner, from which a 5/8-inch iron rod bears N 16° 14' W, 3.45 feet; N 87° 26' 16" E, a distance of 291.31 feet to a broken TxDOT monument found for corner and point of curve; In a southeasterly direction, 464.90 feet, with the arc of a curve to the right, having a radius of 533.69 feet, a central angle of 49° 54' 39" and chord which bears S 67° 36' 31" E, 450.34 feet to a disturbed TxDOT monument found at the end of curve from which a found 5/8-inch iron rod bears N 08° 38' E, 2.55 feet; S 42° 40' 24" E, a distance of 4811.23 feet to a TxDOT monument, and a 5/8-inch iron rod with cap stamped "Hovis Surveying" found for corner; N 47° 19' 36" E, a distance of 40.00 feet to a 5/8-inch iron rod with cap stamped "Hovis Surveying" found for corner from which a found broken TxDOT monument which bears N 53° 47' W, 0.78 feet, and from which a found broken TxDOT monument bears N 44° 02' W, 5.46 feet; S 42° 40' 24" E, a distance of 70.00 feet to a 5/8-inch iron rod with cap stamped "Hovis Surveying" found for corner; S 47° 19' 36" W, a distance of 40.00 feet to a 5/8-inch iron rod with cap stamped "Hovis Surveying" found for corner from which a found TxDOT monument bears N 41° 18' W, 7.38 feet; S 42° 40' 24" E, a distance of 1,605.85 feet to a point for a corner; THENCE over and across the said called 2,052.761 acre tract as follows: S 47° 19' 36" W, a distance of 1000.00 feet to a point for a corner; N 42° 40' 24" W, a distance of 1,804.37 feet to a point in the southeasterly line of a varied width Galveston County Water Company Canal as recorded in Volume 821, Page 490 of the Galveston County Deed Records; THENCE along the southeasterly line of the said varied width Galveston County Water Company Canal as follows: N 66° 22' 36" E, a distance of 459.14 feet to a point for a corner; S 33° 12' 24" E, a distance of 8.80 feet to a point for a corner; N 56° 47' 36" E, a distance of 549.94 feet to a point for a corner; THENCE N 42° 40' 24" W over and across the said varied width Galveston County Water Company Canal and the said called 2,052.761 acre tract, a distance of 1,710.86 feet to a point for a corner; THENCE over and across the said called 2,052.761 acre tract as follows: S 47° 19' 36" W, a distance of 975.00 feet to a point for a corner; N 42° 40' 24" W, a distance of 2,700.00 feet to a point for a corner; S 88° 01' 49" W, a distance of 1836.03 feet to a point in the east line of the said Interurban Gardens Subdivision; THENCE N 01° 58' 11" W, along the east lines of the said Interurban Gardens Subdivision and Holland Road Estates, Section Two as recorded under Volume 18, Page 442, of the Galveston County Map Records, a distance of 3,670.00 feet to the POINT OF BEGINNING and containing 212.06 acres of land. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.