85(R) HB 4341 - Introduced version

	85R23114 SMT-F

	By: Bailes	H.B. No. 4341

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Liberty County Municipal Management

District No. 1; providing authority to issue bonds; providing

authority to impose assessments, fees, or 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 3795 to read as follows:

CHAPTER 3795. LIBERTY COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3795.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Plum Grove, Texas.

(3) "Commission" means the Texas Commission on

Environmental Quality.

(4) "County" means Liberty County.

(5) "Director" means a board member.

(6) "District" means the Liberty County Municipal

Management District No. 1.

Sec. 3795.002. CREATION AND NATURE OF DISTRICT. The

district is a special district created under Sections 52 and 52-a,

Article III, and Section 59, Article XVI, Texas Constitution.

Sec. 3795.003. PURPOSE; LEGISLATIVE FINDINGS. (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. By creating the district and in authorizing the city 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.

(b) 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.

interpreted to relieve the city or 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 city or county services

provided in the district.

Sec. 3795.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)

The district is created to serve a public use and benefit.

(b) 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.

municipal management district as provided by general law and

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution.

(d) 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.

(e) 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; and

(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.

(f) 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.

(g) 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. 3795.005. 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 contract;

(3) authority to borrow money or issue bonds or other

obligations described by Section 3795.204 or to pay the principal

and interest of the bonds or other obligations;

(4) right to impose or collect an assessment or

collect other revenue; or

(5) legality or operation.

Sec. 3795.006. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICT LAW. Except as provided by this chapter, Chapter 375,

Local Government Code, applies to the district.

Sec. 3795.007. 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. 3795.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five voting directors who must be qualified

under Section 375.063, Local Government Code.

(b) The directors serve staggered terms of four years with

two or three directors' terms expiring June 1 of each odd-numbered

year.

Sec. 3795.052. APPOINTMENT OF DIRECTORS. The commission

shall appoint directors from persons recommended by the board.

Sec. 3795.053. VACANCY. If a vacancy occurs on the board,

the remaining directors shall appoint a director for the remainder

of the unexpired term.

Sec. 3795.054. COMPENSATION; EXPENSES. (a) The district

may compensate each director in an amount not to exceed $50 for each

board meeting. The total amount of compensation a director may

receive each year may not exceed $2,000.

(b) A director is entitled to reimbursement for necessary

and reasonable expenses incurred in carrying out the duties and

responsibilities of the board.

Sec. 3795.055. INITIAL DIRECTORS. (a) The initial board

consists of:

Pos. No.

Name of Director

William Harris III

Damaris Watson

Brent A. Lane

Clifton C. Cadle

Savannah Crihfield

(b) The terms of the initial directors expire June 1, 2019.

terms of directors serving in positions 1 through 3 expire June 1,

2021, and the terms of directors serving in positions 4 and 5 expire

June 1, 2023.

(d) Section 3795.052 does not apply to initial directors

under this section.

(e) This section expires September 1, 2023.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3795.101. GENERAL POWERS AND DUTIES. The district has

the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 3795.102. IMPROVEMENT PROJECTS AND SERVICES. The

district 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, using any money available to the district, or

contract with a governmental or private entity to 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.

Sec. 3795.103. ECONOMIC DEVELOPMENT. (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.

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. 3795.104. FIREFIGHTING SERVICES. Notwithstanding

Section 49.351(a), Water Code, the district may, as authorized by

Section 59(f), Article XVI, Texas Constitution, and Section 49.351,

Water Code:

(1) establish, operate, and maintain a fire

department;

(2) contract with another political subdivision for

the joint operation of a fire department; or

(3) contract with any other person to perform

firefighting services in the district and may issue bonds and

impose taxes to pay for the department and the activities.

Sec. 3795.105. FEES AND CHARGES. (a) The district may

adopt and enforce all necessary charges, mandatory fees, or

rentals, in addition to taxes, for providing or making available

any district facility or service, including firefighting

activities provided under Section 3795.104.

(b) To enforce payment of an unpaid fee or charge due to the

district, on the request of the district, a retail public utility,

as defined by Section 13.002, Water Code, providing water or sewer

service to a customer in the district shall terminate the service.

Sec. 3795.106. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3795.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The

board by resolution shall establish the number of signatures and

the procedure required for a disbursement or transfer of the

district's money.

Sec. 3795.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.

The district may acquire, construct, finance, operate, or maintain

an improvement project or service authorized under this chapter or

Chapter 375, Local Government Code, using any money available to

the district.

Sec. 3795.153. 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. 3795.154. METHOD OF NOTICE OF HEARING. The district

may mail the notice required by Section 375.115(c), Local

Government Code, by certified or first class United States mail.

The board shall determine the method of mailing notice.

Sec. 3795.155. 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.

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. 3795.201. ELECTIONS REGARDING TAXES AND BONDS. (a)

The district may issue, without an election, bonds, notes, and

other obligations secured by revenue other than ad valorem taxes.

(b) The district must hold an election in the manner

provided by Subchapter L, Chapter 375, Local Government Code, to

obtain voter approval before the district may impose an ad valorem

tax or issue bonds payable from ad valorem taxes.

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. 3795.202. OPERATION AND MAINTENANCE TAX. (a) If

authorized by a majority of the district voters voting at an

election held in accordance with Section 3795.201, the district may

impose an operation and maintenance tax on taxable property in the

district in accordance with Section 49.107, Water Code, for

operation and maintenance purposes, including for:

(1) maintaining and operating the district;

(2) planning, constructing, acquiring, maintaining,

repairing, and operating all improvement projects, including land,

plants, works, facilities, improvements, appliances, and equipment

of the district; or

(3) paying costs of services, engineering and legal

fees, and organization and administrative expenses.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

Sec. 3795.203. SALES AND USE TAX. (a) The district may

impose a sales and use tax if authorized by a majority of the voters

of the district voting at an election called for that purpose.

Revenue from the tax may be used for any purpose for which ad

valorem tax revenue of the district may be used.

(b) The district may not adopt a sales and use tax if as a

result of the adoption of the tax the combined rate of all sales and

use taxes imposed by the district and other political subdivisions

of this state having territory in the district would exceed two

percent at any location in the district.

sales and use tax at an election held on the same election date on

which another political subdivision adopts a sales and use tax or

approves an increase in the rate of its sales and use tax and as a

result the combined rate of all sales and use taxes imposed by the

district and other political subdivisions of this state having

territory in the district would exceed two percent at any location

in the district, the election to adopt a sales and use tax under

this chapter has no effect.

(d) Chapter 321, Tax Code, applies to the imposition,

computation, administration, enforcement, and collection of the

sales and use tax imposed by this section except to the extent it is

inconsistent with this chapter.

Sec. 3795.204. 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,

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. 3795.205. TAXES FOR BONDS. At the time the district

issues bonds payable wholly or partly from ad valorem taxes, the

board shall provide for the annual imposition of a continuing

direct 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.

Sec. 3795.206. 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.

SUBCHAPTER F. SPECIAL BOND PROVISIONS

Sec. 3795.251. APPLICABILITY. This subchapter applies to

bonds payable wholly or partly from revenue derived from

assessments on real property in the district.

Sec. 3795.252. CONFLICT OF LAWS. In the event of a conflict

between this subchapter and any other law, this subchapter

prevails.

Sec. 3795.253. WRITTEN AGREEMENT REGARDING SPECIAL

APPRAISALS. Before an election may be held on the question of

issuing bonds, including an election that combines the question of

confirming the creation of the district with the question of

authorizing the district to issue bonds, the district and any

person to whom the board intends that proceeds of the bonds be

distributed, including the developer, another owner of land in the

district, and any entity acting as a lender to the developer or

other landowner for the purpose of a project relating to the

district, must enter into a written agreement that:

(1) waives for the term of the agreement the right to a

special appraisal with respect to taxation by the district under

Subchapters B, C, D, E, F, and H, Chapter 23, Tax Code; and

(2) remains in effect for 30 years and is binding on

the parties, on entities related to or affiliated with the parties,

and on their successors and assignees.

Sec. 3795.254. REQUIREMENTS FOR ADVERTISING BOND ISSUE. A

district may not advertise for an issuance of bonds until the

completion of at least 25 percent of the projected value of the

improvements, including houses and other buildings, that are liable

for district assessments and necessary to support the district

bonds.

Sec. 3795.255. REQUIREMENTS FOR BOND ISSUE. The district

may not issue bonds until:

(1) the district submits to the commission:

(A) an engineer's report describing the project

for which the bonds will provide funding, including data, profiles,

maps, plans, and specifications related to the project; and

(B) a cash flow analysis to determine the

projected rate of assessment, which includes the following

assumptions:

(i) each ending balance for debt service in

the analysis is not less than 25 percent of the following year's

debt service requirement;

(ii) interest income is only shown on the

ending balance for debt service for the first two years; and

(iii) the projected rate of assessment is

level or decreasing for the life of the bonds issued by the

district;

(2) the completion of at least 75 percent of the

projected value of the improvements, including houses and other

buildings, that are liable for district assessments and necessary

to support the district bonds; and

(3) the district has obtained an independent market

study from a firm recognized in the area of real estate market

analysis supporting the development projects for the real property

that is liable for district assessments and necessary to support

the district bonds.

Sec. 3795.256. REQUIREMENTS FOR COLLECTION OF REVENUE TO

PAY BONDS. The district may not collect an assessment to be used

for the payment of bonds until:

(1) the completion of at least 95 percent of the

underground water, wastewater, and drainage facilities financed

from bond proceeds that are necessary to serve the projected

build-out, as certified by the district's engineer;

(2) the district or other appropriate party has

secured the groundwater, surface water, and water discharge permits

that are necessary to secure capacity to support the projected

build-out;

(3) the completion of at least 95 percent of lift

station, water plant, and sewage treatment plant capacity

sufficient to serve the connections constructed in the project for

a period of not less than 18 months, as certified by the district's

engineer; and

(4) the completion of at least 95 percent of the

streets and roads that are necessary to provide access to the areas

served by utilities and financed by the proceeds of bonds issued by

the district, as certified by the district's engineer and

constructed in accordance with municipal or county standards.

SECTION 2. The Liberty County Municipal Management District

No. 1 initially includes all territory contained in the following

area:

BEING a 5.030 acre tract situated in the Ann Holshousen Survey,

Abstract No. 208, Liberty County, Texas, being a portion of that

called 552.454 acre tract described in instrument to Colony Ridge

Development, LLC, recorded under Clerk's File Number 2011006320 of

the Official Public Records of Liberty County, Texas

(O.P.R.L.C.T.), said 5.030 acre tract being more particularly

described by metes and bounds as follows:

BEGINNING at a 5/8 inch iron rod found for the southeast corner of

the Sallas 4.15 acre tract, for the northeast corner of the herein

described 5.030 acre tract;

THENCE South 02°39'02" East, with the west line of Montebello,

Section One, as shown on the map or plat thereof, recorded under

Clerk's File Number 2011-013088, O.P.R.L.C.T., at a distance of

10.63 feet, pass a 1/2 inch iron rod found for reference, at a

distance of 22.82 feet, pass a 5/8 inch iron rod found for

reference, in all, a total distance of 266.08 feet to a 5/8 inch

iron rod found for the northeast corner of a called 13.2864 acre

tract described in instrument recorded under Clerk's File Number

2006-002427, O.P.R.L.C.T., and the southeast corner of the herein

described 5.030 acre tract;

THENCE South 86°13'24" West, 822.18 feet, with the north line of

said 13.2864 acre tract, to a 12 inch pin oak tree found for the

southeast corner of a called 1.0 acre tract described in instrument

recorded under Volume 1864, Page 509 of the Liberty County Deed

Records (L.C.D.R.), being the southwest corner of the herein

described 5.030 acre tract;

THENCE North 03°05'36" West, with the east line of said 1.0 acre

tract, at a distance of 226.45 feet, pass a 5/8 inch iron rod found

for reference, in all, a total distance of 266.32 feet to a 5/8 inch

iron rod found in a gravel drive in the south line of a called 1.8035

acre tract described in instrument recorded under Clerk's File

Number 2009-009011, O.P.R.L.C.T., being the northwest corner of the

herein described 5.030 acre tract;

THENCE North 86°14'31" East, 824.24 feet, with the south line of

said 1.8035 acre tract, the south line of a called 1.1499 acre tract

described in instrument recorded under Clerk's File Number

2004-005863, O.P.R.L.C.T., and the south line of said Sallas 4.15

acre tract, to the PLACE OF BEGINNING;

CONTAINING a computed area of 5.030 acres of land within this Field

Note Description.

This Field Note Description and is referenced to Survey Drawing

Project No. C69-320_5.030ac.

Bearings recited hereon are based on the recorded plat of said

Camino Real, Section Three.

Being Reserve A of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve B of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve C of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve D of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve E of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve F of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve G of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve H of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve I of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve J of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve K of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve L of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve M of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve N of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve O of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve P of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve Q of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve R of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being Reserve S of Santa Fe, Section 1, a plat of said subdivision

recorded under Liberty County Clerk's File Number 2017-005075, of

the Official Public Records of Liberty County, Texas;

Being all of Lot 258, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 259, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 260, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 261, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 262, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 263, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 264, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 265, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 266, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 267, Block 8 of Grand San Jacinto, Section 2, a plat

of said subdivision recorded under Liberty County Clerk's File

Number 2013-017696, of the Official Public Records of Liberty

County, Texas;

Being all of Lot 517, Block 15 of Grand San Jacinto, Section 2, a