87R8555 SGM-F

By: Creighton S.B. No. 2196

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Cleveland Municipal Utility District No. 2; 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 F, Title 6, Special District Local Laws Code, is amended by adding Chapter 7905A to read as follows:

CHAPTER 7905A. CLEVELAND MUNICIPAL UTILITY DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7905A.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 Cleveland Municipal Utility District No. 2.

Sec. 7905A.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

Sec. 7905A.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. 7905A.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7905A.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. 7905A.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. 7905A.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. 7905A.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Except as provided by Section 7905A.0202, directors serve staggered four-year terms.

Sec. 7905A.0202. TEMPORARY DIRECTORS. (a) The temporary board consists of:

(1) Curtis R. Campbell;

(2) Gready W. Hunter;

(3) Kevin R. Loeffler;

(4) Gordon Richardson; and

(5) Greg Eknoyan.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section 7905A.0103; or

(2) the fourth anniversary of the effective date of the Act enacting this chapter.

(c) If permanent directors have not been elected under Section 7905A.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 7905A.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. 7905A.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 7905A.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. 7905A.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. 7905A.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. 7905A.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. 7905A.0306. EFFECT OF ANNEXATION. (a) A municipality within whose extraterritorial jurisdiction the land in the district lies may annex all of the district into its corporate limits under the terms of an agreement entered into before the effective date of the Act creating this chapter between the municipality and the owners of the land being annexed, and, in that instance, the district may not be dissolved, except as provided by Subsection (b).

(b) The district may be dissolved and its debts and obligations assumed by the municipality in accordance with Chapter 43, Local Government Code, including Sections 43.075 and 43.0715, on:

(1) annexation of all of the territory of the district by the municipality; and

(2) completion of the construction of the water, sanitary sewer, and drainage improvements and roads required to serve at least 95 percent of the land in the district.

(c) Notwithstanding Section 54.016(f)(2), Water Code, a contract between the municipality and the district that provides for the allocation of the taxes or revenues between the district and the municipality following the date of inclusion of all the district's territory in the corporate limits of the municipality may provide that the total annual ad valorem taxes collected by the municipality and the district from taxable property in the district may exceed the municipality's ad valorem tax on the property.

Sec. 7905A.0307. 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, at the time the new district is created, contain only:

(1) land within the area described by Section 2 of the Act enacting this chapter; or

(2) any land adjacent to the area described by Section 2 of the Act enacting this chapter if that adjacent land is:

(A) not within the extraterritorial jurisdiction of a municipality; or

(B) within the extraterritorial jurisdiction of a municipality and that adjacent land has been approved for inclusion in the district under the consent ordinance or resolution adopted under Section 7905A.0104.

(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 under Section 7905A.0103 to confirm the district's creation.

(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 temporary 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 shall hold a confirmation and directors' election as required by Section 7905A.0103.

(i) Municipal consent is not required for the creation of any new district created under this section.

(j) 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.

(k) If the voters of a new district do not confirm the creation of the new district, the assets, obligations, territory, and governance of the new district revert to that of the original district.

Sec. 7905A.0308. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district boundaries to acquire a site or easement for:

(1) a recreational facility, as defined by Section 49.462, Water Code; or

(2) a road project authorized by Section 7905A.0303.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 7905A.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 7905A.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. 7905A.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7905A.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. 7905A.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. 7905A.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. 7905A.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. 7905A.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 Cleveland Municipal Utility District No. 2 initially includes all the territory contained in the following area: Tract 1: 327.35 Acre Tract BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 327.35 ACRES SITUATED IN THE T.J. WILLIAMS SURVEY, ABSTRACT No. 593, MONTGOMERY COUNTY, TEXAS, AND IN THE T.J. WILLIAMS SURVEY, ABSTRACT No. 404, LIBERTY COUNTY, TEXAS, AND BEING ALL OF A CALLED 190.39 ACRE TRACT AS RECORDED IN LIBERTY COUNTY CLERK'S FILE No. 2004009912, ALL OF A CALLED 2.6091 ACRE 30 FOOT WIDE EASEMENT AS RECORDED IN LIBERTY COUNTY CLERK'S FILE No. 2013018887, ALL OF A CALLED 34.84 ACRE TRACT AS RECORDED IN VOLUME 1632, PAGE 268, OFFICIAL PUBLIC RECORDS LIBERTY COUNTY, TEXAS, AND PART OF A CALLED 120.000 ACRE TRACT AS RECORDED IN VOLUME 1447, PAGE 468, OFFICIAL PUBLIC RECORDS LIBERTY COUNTY, TEXAS AND MONTGOMERY COUNTY CLERK'S FILE No. 9301337; SAID 327.35 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, TO-WIT: BEGINNING at a concrete monument found for the northeast corner of a called 64.6488 acre tract as recorded in Volume 1953, Page 23, Official Public Records Liberty County, Texas, same being the northwest corner of said 190.39 acre tract and a corner of this herein described tract; THENCE North 86 degrees 58 minutes 14 seconds East, a distance of 1881.20 feet (called North 89 degrees 50 minutes 58 seconds East, a distance of 1884.39 feet) with the north line of said 190.39 acre tract, same being the south line of a called 360.4002 acre tract as recorded in Liberty County Clerk's File No. 2016000084 to a 5/8 inch iron rod found for a corner of this herein described tract, from which a found 3/8 inch iron rod with cap bears: South 01 degrees 36 minutes East, a distance of 39.9 feet; THENCE South 03 degrees 13 minutes 58 seconds East, a distance of 765.62 feet (called South 00 degrees 19 minutes 36 seconds East, a distance of 766.58 feet) with the upper east line of said 190.39 acre tract, same being the west line of a called 10.1648 acre tract, called Tract 1 as recorded in Liberty County Clerk's File No. 2013018887 to a 5/8 inch iron rod found for a corner of this herein described tract; THENCE North 86 degrees 52 minutes 33 seconds East, a distance of 696.98 feet (called North 89 degrees 43 minutes 53 seconds East, a distance of 697.59 feet) with the common line of said 190.39 acre tract, same being the south line of said 10.1648 acre tract, called Tract 1 to a 5/8 inch iron rod with cap found for a corner of this herein described tract; THENCE North 03 degrees 08 minutes 50 seconds West, a distance of 131.54 feet (called North 00 degrees 27 minutes 51 seconds West, a distance of 131.80 feet) with the common line of said 190.39 acre tract, same being the east line of a called 10.1648 acre tract, called Tract 2 as recorded in Liberty County Clerk's File No. 2013018887 to a 5/8 inch iron rod with cap found for a corner of this herein described tract; THENCE North 86 degrees 33 minutes 47 seconds East, a distance of 40.27 feet (called North 89 degrees 41 minutes 30 seconds East, a distance of 40.00 feet) with the common line of said 190.39 acre tract, same being the common line of said 10.1648 acre tract, called Tract 2 to a 5/8 inch iron rod with cap found for a corner of this herein described tract; THENCE South 03 degrees 31 minutes 47 seconds East, a distance of 515.41 feet (called South 00 degrees 38 minutes 47 seconds East, a distance of 515.29 feet) with the east line of said 190.39 acre tract, same being the west line of said 10.1648 acre tract, called Tract 2 to a fence corner found for a corner of this herein described tract, from which a found fence post bears: South 87 degrees 59 minutes East, a distance of 1.7 feet; THENCE North 86 degrees 12 minutes 38 seconds East, a distance of 1325.30 feet (called North 89 degrees 04 minutes 53 seconds East, a distance of 1325.42 feet) with the north line of said 2.6091 acre easement, same being the south line of said 10.1648 acre tract, called Tract 2, a called 10.1648 acre tract, called Tract 3 as recorded in Liberty County Clerk's File No. 2013018887, a called 10.1648 acre tract, called Tract 4 as recorded in Liberty County Clerk's File No. 2013018887 and a called 19.000 acre tract, called Tract 6 as recorded in Liberty County Clerk's File No. 2013018887 to a 5/8 inch iron rod set for a corner of this herein described tract; THENCE North 89 degrees 36 minutes 34 seconds East, a distance of 994.20 feet (called North 87 degrees 31 minutes 11 seconds East) with the north line of said 2.6091 acre easement, same being the south line of said 19.000 acre tract to a 5/8 inch iron rod found for a corner of this herein described tract; THENCE North 02 degrees 15 minutes 04 seconds West, a distance of 518.23 feet (called North 00 degrees 37 minutes 11 seconds East) with the west line of said 2.6091 acre easement, same being the east line of said 19.000 acre tract to a 5/8 inch iron rod found for a corner of this herein described tract; THENCE South 87 degrees 18 minutes 12 seconds West, a distance of 310.97 feet (called North 89 degrees 49 minutes 33 seconds West) with the south line of said 2.6091 acre easement, same being the common line of said 19.000 acre tract to a 5/8 inch iron rod with cap found for a corner of this herein described tract; THENCE North 03 degrees 13 minutes 57 seconds West, a distance of 641.11 feet (called North 00 degrees 21 minutes 42 seconds West, a distance of 641.10 feet) with the west line of said 2.6091 acre easement, same being the east line of said 19.000 acre tract to a 5/8 inch iron rod with cap found in the south margin of Smith Road for a corner of this herein described tract; THENCE North 87 degrees 01 minutes 50 seconds East, a distance of 30.26 feet (called North 89 degrees 47 minutes 11 seconds East, a distance of 30.17 feet) with the south margin of said Smith Road, same being the north line of said 2.6091 acre easement to a 5/8 inch iron rod found for the northeast corner of this herein described tract, from which a found 1-inch disturbed iron pipe bears: North 03 degrees 11 minutes East, a distance of 20.2 feet; THENCE South 03 degrees 12 minutes 29 seconds East, a distance of 611.25 feet (called South 00 degrees 20 minutes 13 seconds East) with the east line of said 2.6091 acre easement, same being the west line of a called 4.00 acre tract, called Lot 1 as recorded in Liberty County Clerk's File No. 2005008870 to a 5/8 inch iron rod with cap found for a corner of this herein described tract; THENCE North 87 degrees 45 minutes 26 seconds East, a distance of 311.37 feet (called South 89 degrees 31 minutes 21 seconds East, a distance of 311.67 feet) with the north line of said 2.6091 acre easement, same being the south line of said 4.00 acre tract to a 5/8 inch iron rod with cap found for a corner of this herein described tract, from which a found 2-inch iron pipe bears: South 02 degrees 38 minutes East, a distance of 210.1 feet; THENCE South 02 degrees 12 minutes 18 seconds East, a distance of 575.24 feet (called South 00 degrees 40 minutes 48 seconds West, a distance of 577.79 feet) with the east line of said 2.6091 acre easement, same being the west line of a called 16.9 acre tract as recorded in Volume 63, Page 544, Deed Records Liberty County, Texas and a called 12.6905 acre tract as recorded in Volume 677, Page 306, Deed Records Liberty County, Texas to a 1-1/2 inch iron pipe found for a corner of this herein described tract; THENCE South 89 degrees 30 minutes 46 seconds West, a distance of 1023.68 feet (called North 87 degrees 31 minutes 11 seconds West, a distance of 1023.71 feet) with the south line of said 2.6091 acre easement, same being the north line of a called 40 acre tract as recorded in Volume 528, Page 399, Deed Records Liberty County, Texas to a 1-inch iron pipe found for a corner of this herein described tract; THENCE South 86 degrees 12 minutes 38 seconds West, a distance of 1324.54 feet (called South 89 degrees 04 minutes 53 seconds West, a distance of 1324.67 feet) with the south line of said 2.6091 acre easement, same being the north line of a called 80 acre tract as recorded in Volume 100, Page 43, Deed Records Liberty County, Texas to a 1-inch iron pipe found for a corner of this herein described tract; THENCE South 02 degrees 04 minutes 35 seconds East, a distance of 1316.22 feet (called South, a distance of 1319.44 feet) with the east line of said 190.39 acre tract, same being the west line of said 80 acre tract to a 1-inch iron rod found for a corner of this herein described tract; THENCE South 03 degrees 52 minutes 46 seconds East, a distance of 747.37 feet (called South 00 degrees 13 minutes 25 seconds East) with the east line of said 190.39 acre tract, same being the west line of said 80 acre tract and a called 25 acre tract, called First Tract as recorded in Volume 1776, Page 354, Official Public Records Liberty County, Texas to a 5/8 inch iron rod found for a corner of this herein described tract; THENCE South 02 degrees 19 minutes 22 seconds East, a distance of 158.63 feet (called South 00 degrees 09 minutes 37 seconds West, a distance of 158.37 feet) with the east line of said 190.39 acre tract, same being the west line of said 25 acre tract, called First Tract to a 1-inch iron pipe found for a corner of this herein described tract; THENCE South 02 degrees 22 minutes 25 seconds East, a distance of 1176.33 feet (called South, a distance of 1176.43 feet) with the east line of said 34.84 acre tract, same being the west line of said 25 acre tract, called First Tract and a called 30 acre tract as recorded in Liberty County Clerk's File No. 2016004237 to a 5/8 inch disturbed iron rod found for the southeast corner of this herein described tract; THENCE South 87 degrees 41 minutes 22 seconds West, a distance of 1288.59 feet (called North 89 degrees 57 minutes 00 seconds West, a distance of 1288.60 feet) with the south line of said 34.84 acre tract, same being the north line of Lot 6, Lot 7, Lot 8 and Lot 9, Block 1 of Five Oaks Estates as recorded in Volume 9, Page 154, Map Records Liberty County, Texas to a fence corner found for a corner of this herein described tract; THENCE North 02 degrees 30 minutes 04 seconds West, a distance of 1176.27 feet (called North 00 degrees 08 minutes 00 seconds West, a distance of 1176.43 feet) with the west line of said 34.84 acre tract, same being the east line of Lot 11, Lot 12, Lot 13 and Lot 14, Block 1 of said Five Oaks Estates to a 3/4 inch iron rod found for a corner of this herein described tract; THENCE South 87 degrees 38 minutes 04 seconds West, a distance of 1305.74 feet (called South 89 degrees 31 minutes 20 seconds West) with the south line of said 190.39 acre tract, same being the north line of Lot 15, Lot 16, Lot 17, Lot 18 and Lot 19, Block 1 of said Five Oaks Estates to a 1/2 inch iron rod found for a corner of this herein described tract; THENCE North 13 degrees 40 minutes 00 seconds West, a distance of 31.96 feet with the west line of said 190.39 acre tract, same being the east line of a called 20.000 acre tract as recorded in Liberty County Clerk's File No. 2006010055 and Montgomery County Clerk's File No. 99022936 to a 1-inch iron pipe found for a corner of this herein described tract; THENCE North 03 degrees 06 minutes 45 seconds West, a distance of 295.56 feet (called North 03 degrees 13 minutes 40 seconds West, a distance of 295.13 feet) with the west line of said 190.39 acre tract, same being the east line of a called 20 acre tract as recorded in Volume 1860, Page 701, Official Public Records Liberty County, Texas and Montgomery County Clerk's File No. 2000082976 to a 1-inch disturbed iron pipe found for a corner of this herein described tract; THENCE North 03 degrees 02 minutes 43 seconds West, a distance of 567.17 feet (called a distance of 567.50 feet) with the west line of said 190.39 acre tract, same being the east line of a called 20 acre tract as recorded in Volume 1458, Page 553, Official Public Records Liberty County, Texas and a called 20.00 acre tract as recorded in Liberty County Clerk's File No. 2018025291 and Montgomery County Clerk's File No. 2018111375 to a 3/4 inch iron pipe found for a corner of this herein described tract; THENCE South 86 degrees 18 minutes 30 seconds West, a distance of 3149.85 feet with the south line of a called 20 acre tract as recorded in Volume 1546, Page 559, Official Public Records Liberty County, Texas, same being the north line of said 20.00 acre tract as recorded in Liberty County Clerk's File No. 2018025291 and Montgomery County Clerk's File No. 2018111375 to a 5/8 inch iron rod found in the east margin of Fostoria Tram Road (100 foot R.O.W.) for a corner of this herein described tract, from which a found 1-inch iron pipe bears: North 18 degrees 35 minutes West, a distance of 283.3 feet; THENCE North 18 degrees 35 minutes 01 seconds West, a distance of 1024.67 feet (called North 18 degrees 35 minutes 33 seconds West) with the east margin of said Fostoria Tram Road, same being the west line of said 120.000 acre tract to a 1-inch iron pipe found for a corner of this herein described tract, from which a found 1-inch iron pipe bears: North 18 degrees 39 minutes West, a distance of 60.2 feet; THENCE North 75 degrees 38 minutes 26 seconds East, a distance of 3486.55 feet (called North 75 degrees 37 minutes 05 seconds East, a distance of 3485.74 feet) with the north line of said 120.000 acre tract, same being the south line of a called 6.66 acre tract as recorded in Liberty County Clerk's File No. 2006004158 and Montgomery County Clerk's File No. 2005139572, a called 1.648 acre tract as recorded in Montgomery County Clerk's File No. 2005139573, a called 1.691 acre tract as recorded in Montgomery County Clerk's File No. 2005139574 and said 64.6488 acre tract to a 3/4 inch iron pipe found for a corner of this herein described tract; THENCE North 03 degrees 17 minutes 31 seconds West, a distance of 838.84 feet (called North 03 degrees 15 minutes 31 seconds West, a distance of 839.13 feet) with the west line of said 190.39 acre tract, same being the east line of said 64.6488 acre tract to the POINT OF BEGINNING and containing 327.35 acres. BEARING STRUCTURE BASED ON TEXAS STATE PLANE COORDINATE SYSTEM, NAD 83, TEXAS CENTRAL ZONE. Tract 2: 359.4174 Acre Tract BEING A 359.4174 ACRE TRACT OF LAND SITUATED IN LIBERTY COUNTY, TEXAS AND BEING OUT OF THE THOMAS DEVERS SURVEY, ABSTRACT NO. 169, AND PETER ORNIE SURVEY, ABSTRACT NO. 326, BEING OUT OF A CALLED 368.6110 ACRE TRACT OF LAND DESCRIBED IN DEED RECORDED IN VOLUME 1490, PAGE 338 OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, AND BEING OUT OF THOSE CERTAIN FRIENDSWOOD TRACTS AS DESCRIBED IN VOLUME 626, PAGE 324 LIBERTY COUNTY DEED RECORDS AND BEING OUT OF THOSE CERTAIN TRACTS OR PARCELS CONVEYED TO STROTHER TIMBERLANDS, LTD., IN A DEED RECORDED IN VOLUME 1394 PAGE 70 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY (O.P.R.L.C.), DATED DECEMBER 18, 1991, AND IN A DEED FROM KING RANCH TO STROTHER TIMBERLANDS, LTD., RECORDED IN VOLUME 1394 PAGE 672 OF THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF LIBERTY COUNTY, TEXAS: SAID TRACT BEING OUT OF THOSE CERTAIN TRACTS OF LAND AS DESCRIBED IN THOSE CERTAIN DEEDS FROM STROTHERS TIMBERLANDS, LTD., TO EUGENE CAMPBELL AS RECORDED IN VOLUME 1404 PAGE 280 OF THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF SAN JACINTO COUNTY, AND RECORDED UNDER THE COUNTY CLERK'S FILM CODE NO. 776?01?0783 OF MONTGOMERY COUNTY; LESS A CALLED 8.1476 ACRE TRACT AS SET OUT IN LIS PENDENS RECORDED IN FILM CODE NO. 2006015260, REAL PROPERTY RECORDS, LIBERTY COUNTY, TEXAS; SAID 359.4174 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, TO-WIT: (BEARINGS BASED ON THE NORTHWEST PROPERTY LINE, SAME BEING THE SOUTHEAST RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, BEING NORTH 67 DEGREES 46 MINUTES 10 SECONDS EAST) SAID 359.4174 ACRES BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT A POINT BEING THE NORTHEAST CORNER OF SAID 8.1476 ACRE TRACT, SAME BEING THE NORTHEAST CORNER OF SAID 368.6100 ACRE TRACT AND BEING IN THE OLD SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105; THENCE SOUTH 03 DEGREES 30 MINUTES 27 SECONDS EAST, ALONG THE EAST LINE OF SAID 8.1476 AND 368.6110 ACRE TRACTS, A DISTANCE OF 340.17 FEET TO A FOUND TX DOT MONUMENT FOR THE SOUTHEAST CORNER OF SAID 8.1476 ACRE TRACT AND NORTHEAST CORNER AND POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 03 DEGREES 29 MINUTES 24 SECONDS EAST, CONTINUING ALONG THE EAST LINE OF SAID 368.6110 ACRE TRACT, A DISTANCE OF 2885.86 FEET TO A 1 INCH IRON PIPE FOUND FOR THE SOUTHWEST CORNER OF A CALLED 20.00 ACRE TRACT DESCRIBED IN DEED RECORDED IN VOLUME 1606, PAGE 110 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, AND BEING AN INTERIOR CORNER OF THE HEREIN DESCRIBED TRACT; THENCE NORTH 86 DEGREES 40 MINUTES 59 SECONDS EAST, ALONG THE SOUTH LINE OF SAID 20.00 ACRE TRACT, SAME BEING A NORTH LINE OF SAID 368.6110 ACRE TRACT, A DISTANCE OF 157.18 FEET TO A 1 INCH PINCH TOP IRON PIPE FOUND FOR AN ELL CORNER OF SAID 368.6110 ACRE TRACT AND THE HEREIN DESCRIBED TRACT; THENCE SOUTH 02 DEGREES 00 MINUTES 44 SECONDS EAST, CONTINUING ALONG THE EAST LINE OF SAID 368.6110 ACRE TRACT, A DISTANCE OF 2076.82 FEET TO A 3/8 INCH IRON ROD FOUND BEING THE SOUTHWEST CORNER OF A CALLED 40.00 ACRE TRACT DESCRIBED IN DEED RECORDED IN VOLUME 1546, PAGE 662 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, BEING IN THE NORTH LINE OF SHIPP FARM ADDITION, ACCORDING TO THE PLAT RECORDED IN VOLUME 1, PAGE 26 OF THE LIBERTY COUNTY MAP RECORDS AND BEING THE SOUTHEAST CORNER OF THE SAID 368.6110 ACRE TRACT AND THE HEREIN DESCRIBED TRACT; THENCE SOUTH 87 DEGREES 00 MINUTES 59 SECONDS WEST, ALONG THE SOUTH LINE OF SAID 368.6110 ACRE TRACT, A DISTANCE OF 3170.40 FEET TO A CONCRETE MONUMENT FOUND BEING THE NORTHWEST CORNER OF A CALLED 178.40 ACRE TRACT DESCRIBED IN DEED RECORDED IN FILM CODE NO. 2004009912 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, BEING THE NORTHEAST CORNER OF A CALLED 64.6488 ACRE TRACT DESCRIBED IN DEED RECORDED IN VOLUME 1587, PAGE 161 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, FOR AN ANGLE POINT IN THE SOUTH LINE OF SAID 368.6110 ACRE TRACT AND THE HEREIN DESCRIBED TRACT; THENCE NORTH 63 DEGREES 13 MINUTES 49 SECONDS WEST, ALONG THE SOUTHWEST LINE OF SAID 368.6110 ACRE TRACT, SAME BEING THE NORTHEAST LINE OF SAID 64.6488 ACRE TRACT, A DISTANCE OF 501.02 FEET TO A POINT FOR CORNER BEING THE SOUTHEAST CORNER OF A CALLED 77.9174 ACRE TRACT DESCRIBED IN DEED RECORDED IN FILM CODE NO. 20040015473 OF THE OFFICIAL PUBLIC RECORDS OF LIBERTY COUNTY, TEXAS, AND BEING THE SOUTHWEST CORNER OF SAID 368.6110 ACRE TRACT AND THE HEREIN DESCRIBED TRACT, FROM WHICH A FOUND FENCE CORNER POST BEARS SOUTH 45 DEGREES 26 MINUTES EAST, A DISTANCE OF 2.03 FEET; THENCE NORTH 00 DEGREES 57 MINUTES 53 SECONDS EAST, ALONG THE WEST LINE OF SAID 368.6110 ACRE TRACT, SAME BEING THE EAST LINE OF SAID 77.1974 ACRE TRACT, A DISTANCE OF 3732.73 FEET TO A 5/8 INCH CAPPED IRON ROD STAMPED "SOUTH TEXAS SURVEYING" SET FOR CORNER SAID POINT IN THE EAST LINE OF SAID 77.1974, 368.6110 ACRE TRACTS AND THE SOUTHWEST CORNER OF A SAVE AND EXCEPT 0.9827 ACER TRACT; THENCE NORTH 65 DEGREES 53 MINUTES 11 SECONDS EAST, OVER AND ACROSS THE SAID 368.6110 ACRE TRACT, SAME BEING THE SOUTH LINE OF SAID 0.9827 ACRE TRACT, A DISTANCE OF 277.78 FEET TO A 5/8 INCH CAPPED IRON ROD STAMPED "SOUTH TEXAS SURVEYING" SET FOR CORNER; THENCE NORTH 22 DEGREES 19 MINUTES 58 SECONDS WEST, OVER AND ACROSS THE SAID 368.6110 ACRE TRACT, SAME BEING THE EAST LINE OF SAID 0.9827 ACRE TRACT, A DISTANCE OF 172.48 FEET TO A 5/8 INCH CAPPED IRON ROD STAMPED "SOUTH TEXAS SURVEYING" SET IN THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105 AND BEING THE SOUTHWEST CORNER OF SAID 8.1476 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE NORTH 67 DEGREES 46 MINUTES 10 SECONDS EAST, ALONG THE SOUTH LINE OF SID 8.1476 ACRE TRACT BEING THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, A DISTANCE OF 1168.84 FEET TO A FOUND TX DOT MONUMENT AT THE BEGINNING OF A CURVE TO THE RIGHT IN THE NORTH LINE OF THE HEREIN DESCRIBED TRACT; THENCE IN A NORTHEASTERLY DIRECTION CONTINUING ALONG THE SOUTH LINE OF SAID 8.1476 ACRE TRACT BEING THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, BEING A CURVE TO THE RIGHT HAVING A RADIUS OF 3208.83 FEET, A CENTRAL ANGLE OF 14 DEGREES 58 MINUTES 29 SECONDS, A CHORD BEARING NORTH 75 DEGREES 05 MINUTES 30 SECONDS EAST, A CHORD DISTANCE OF 836.27 FEET AND AN ARC LENGTH OF 838.65 FEET TO A FOUND TX DOT MONUMENT AT THE END OF SAID CURVE IN THE NORTH LINE OF THE HEREIN DESCRIBED TRACT; THENCE NORTH 82 DEGREES 24 MINUTES 50 SECOND EAST, CONTINUING ALONG THE SOUTH LINE OF SAID 8.1476 ACRE TRACT BEING THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, A DISTANCE OF 594.81 FEET TO A FOUND TX DOT MONUMENT AT THE BEGINNING OF A CURVE TO THE LEFT IN THE NORTH LINE OF THE HEREIN DESCRIBED TRACT; THENCE IN A NORTHEASTERLY DIRECTION CONTINUING ALONG THE SOUTH LINE OF SAID 8.1476 ACRE TRACT BEING THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, BEING A CURVE TO THE LEFT HAVING A RADIUS OF 853.02 FEET, A CENTRAL ANGLE OF 26 DEGREES 02 MINUTES 42 SECONDS, A CHORD BEARING NORTH 69 DEGREES 23 MINUTES 28 SECONDS EAST, A CHORD DISTANCE OF 384.43 FEET AND AN ARC LENGTH OF 387.76 FEET TO A FOUND TX DOT MONUMENT AT A POINT OF COMPOUND CURVATURE IN THE NORTH LINE OF THE HEREIN DESCRIBED TRACT; THENCE IN A NORTHEASTERLY DIRECTION CONTINUING ALONG THE SOUTH LINE OF SAID 8.1476 ACRE TRACT BEING THE SOUTH RIGHT-OF-WAY LINE OF STATE HIGHWAY NO. 105, BEING A CURVE TO THE RIGHT HAVING A RADIUS OF 4068.23 FEET, A CENTRAL ANGLE OF 01 DEGREES 39 MINUTES 42 SECONDS, A CHORD BEARING NORTH 85 DEGREES 11 MINUTES 36 SECONDS EAST, A CHORD DISTANCE OF 117.97 FEET AND AN ARC LENGTH OF 117.98 FEET TO THE POINT OF BEGINNING AND CONTAINING 359.4174 ACRES (15,656,223 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. (a) Section 7905A.0308, 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 7905A, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7905A.0308 to read as follows:

Sec. 7905A.0308. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

(c) This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution.

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, 2021.