86R28448 TSR-F
 
  By: Zaffirini S.B. No. 2558
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Lone Oak Farm Municipal Utility
  District; 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 E, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 7888 to read as follows:
  CHAPTER 7888. LONE OAK FARM MUNICIPAL UTILITY DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7888.0101.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Lone Oak Farm Municipal
  Utility District.
         Sec. 7888.0102.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7888.0103.  CONFIRMATION AND DIRECTOR ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 7888.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  7888.0103 until each municipality in whose corporate limits or
  extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         Sec. 7888.0105.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
  (a)  The district is created to serve a public purpose and benefit.
         (b)  The district is created to accomplish the purposes of:
               (1)  a municipal utility district as provided by
  general law and Section 59, Article XVI, Texas Constitution; and
               (2)  Section 52, Article III, Texas Constitution, that
  relate to the construction, acquisition, improvement, operation,
  or maintenance of macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 7888.0106.  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 made in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 7888.0201.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7888.0202, directors
  serve staggered four-year terms.
         Sec. 7888.0202.  TEMPORARY DIRECTORS. (a) On or after
  September 1, 2019, the owner or owners of a majority of the assessed
  value of the real property in the district may submit a petition to
  the commission requesting that the commission appoint as temporary
  directors the five persons named in the petition.  The commission
  shall appoint as temporary directors the five persons named in the
  petition.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 7888.0103; or
               (2)  September 1, 2023.
         (c)  If permanent directors have not been elected under
  Section 7888.0103 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 7888.0103; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 7888.0301.  GENERAL POWERS AND DUTIES.  The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7888.0302.  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. 7888.0303.  AUTHORITY FOR ROAD PROJECTS. Under Section
  52, Article III, Texas Constitution, the district may design,
  acquire, construct, finance, issue bonds for, improve, operate,
  maintain, and convey to this state, a county, or a municipality for
  operation and maintenance macadamized, graveled, or paved roads, or
  improvements, including storm drainage, in aid of those roads.
         Sec. 7888.0304.  ROAD STANDARDS AND REQUIREMENTS. (a) A
  road project must meet all applicable construction standards,
  zoning and subdivision requirements, and regulations of each
  municipality in whose corporate limits or extraterritorial
  jurisdiction the road project is located.
         (b)  If a road project is not located in the corporate limits
  or extraterritorial jurisdiction of a municipality, the road
  project must meet all applicable construction standards,
  subdivision requirements, and regulations of each county in which
  the road project is located.
         (c)  If the state will maintain and operate the road, the
  Texas Transportation Commission must approve the plans and
  specifications of the road project.
         Sec. 7888.0305.  COMPLIANCE WITH MUNICIPAL CONSENT
  ORDINANCE OR RESOLUTION.  The district shall comply with all
  applicable requirements of any ordinance or resolution that is
  adopted under Section 54.016 or 54.0165, Water Code, and that
  consents to the creation of the district or to the inclusion of land
  in the district.
         Sec. 7888.0306.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 7888.0401.  ELECTIONS REGARDING TAXES OR BONDS. (a)
  The district may issue, without an election, bonds and other
  obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 7888.0403.
         (b)  The district must hold an election in the manner
  provided by Chapters 49 and 54, Water Code, to obtain voter approval
  before the district may impose an ad valorem tax or issue bonds
  payable from ad valorem taxes.
         (c)  The district may not issue bonds payable from ad valorem
  taxes to finance a road project unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election held for that purpose.
         Sec. 7888.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7888.0401, the
  district may impose an operation and maintenance tax on taxable
  property in the district in accordance with Section 49.107, Water
  Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 7888.0403.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
  SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
         Sec. 7888.0501.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS.  The district may issue bonds or other obligations
  payable wholly or partly from ad valorem taxes, impact fees,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for any authorized district
  purpose.
         Sec. 7888.0502.  TAXES FOR BONDS. At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct ad valorem tax, without limit as to rate or amount, while all
  or part of the bonds are outstanding as required and in the manner
  provided by Sections 54.601 and 54.602, Water Code.
         Sec. 7888.0503.  BONDS FOR ROAD PROJECTS. At the time of
  issuance, the total principal amount of bonds or other obligations
  issued or incurred to finance road projects and payable from ad
  valorem taxes may not exceed one-fourth of the assessed value of the
  real property in the district.
         SECTION 2.  The Lone Oak Farm Municipal Utility District
  initially includes all the territory contained in the following
  area:
         BEING approximately 204.889 Acres, situated in the A. M.
  Esnaurizar Survey, Abstract Number 20, Guadalupe County, Texas,
  being a portion of a 125.3 Acres, called First Tract and 80.7 Acres,
  called Second Tract, described in a Deed to Louis C. Heinemeyer and
  wife, Annie Heinemeyer, as recorded in Volume 234, Page 559 of the
  Official Public Records of Guadalupe County, Texas; said 204.889
  Acres being more fully described by metes and bounds as follows;
         Beginning, at a 1/2 Inch Iron Rod found, on the South
  Right-of-Way line of Texas F M 758, the Northwest corner of Lot 1,
  Karens Park Subdivision, as recorded in Volume 7, Page 16 of the Map
  and Plat Records of Guadalupe County, Texas, the East line of the
  said 125.3 Acre tract, for the Northeast corner of this tract;
         Thence, South 0°36'52" East, departing the said South
  Right-of-Way, with the East line of the said 125.3 Acre tract, at
  1601.04 Feet, pass a 1 Inch Iron Pipe Found, 0.68 feet Right of
  line, in all 4780.09 Feet, to a 1/2 Inch Iron Rod, with Orange
  Plastic Cap stamped "Urban Civil" set, on the apparent North
  Right-of-Way of Harborth Road (also known as Guadalupe County Road
  Number 125), for the Southeast corner of this tract, from whence a
  1/2 Inch Iron Rod found, for the Southwest corner of a 6.088 acre
  tract, described in a Deed from Vicki S. Hartwick to Lori
  Katcsmorak, as recorded in Volume 4178, Page 816 of the said
  Official Public Records, bears North 89°38'09" East, 669.57 Feet;
         Thence, North 89°06'52" West, with the said apparent North
  Right-of-Way, 1138.89 Feet, to a 1/2 Inch Iron Rod, with Orange
  Plastic Cap stamped "Urban Civil" set, on the East line of the said
  80.7 Acre tract, the West line of the said 125.3 Acre tract, for a
  corner of this tract;
         Thence, North 88°47'14" West, continuing with the said
  apparent North Right-of-Way, at 179.26 feet, pass a 1/2 Inch Iron
  Rod found, 39.85 feet, Left of line, for a Northeast corner of a
  36.8145 Acre tract, described in a Deed from Norman B. Harborth and
  Maxine Harborth to The Norman B. Harborth and Maxine Harborth
  Revocable Living Trust, as recorded in Volume 2464, Page 457 of the
  said Official Public Records, in all 736.07 Feet, to a 1/2 Inch
  Iron Rod, with Orange Plastic Cap stamped "Urban Civil" set, in the
  West line of the said 80.7 acre tract, for the Southwest corner of
  this tract, from whence, a 1/2 Inch Iron Rod found on the South
  Right-of-Way line of the said Harborth Rd. bears South 1°30'29"
  West, 39.74 Feet;
         Thence, North 00°40'10" West, with the West line of the said
  80.7 Acre tract, at 122.19 Feet, pass a 1/2 Inch Iron Rod found,
  25.26 Feet, Left of line, for the Northeast corner of a 1.00 Acre
  tract, described in a deed from Walter Harborth and wife, Martha
  Harborth to Norman Harborth, as recorded in Volume 308, Page 150 of
  the said Official Public Records, in all 1821.25 Feet, to a 3 Inch
  Steel Pipe Fence Corner Post found, for the Southeast corner of a
  46.7252 Acre tract, described in a Deed from Roger Lee Bormann,
  Brenda K. Varna and Audrey Diane Bormann to David Lehmberg and wife,
  Lori Gayle Lehmberg, as recorded in Volume 2785, Page 109 of the
  said Official Public Records, a corner of this tract;
         Thence, North 00°46'04" West, with the East line of the said
  46.7252 Acre tract, the West line of the said 80.7 Acre tract,
  2901.00 Feet, to a 1/2 Inch Iron Rod, with Orange Plastic Cap
  stamped "Urban Civil" set, on the South Right-of-Way of the said
  Texas F M 758, for the Northwest corner of this tract, from whence,
  a 1/2 Inch Iron Rod found for the Northwest corner of a 42.0449 Acre
  tract, described in a Deed from Nelson Bormann to Bartoskewitz Farm
  Foundation, as recorded in Volume 2803, Page 363 of the said
  Official Public Records, bears South 89°14'45" West, 1333.00 Feet;
         Thence, North 89°14'45" East, with the said South
  Right-of-Way, 1883.74 Feet, to the Point of Beginning, containing
  204.889 Acres (8,924,975 Square Feet) 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, 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 September 1, 2019.