S.B. No. 1801




AN ACT
relating to the creation of the Galveston County Municipal Utility District No. 61; providing authority to impose taxes 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 8143 to read as follows:
CHAPTER 8143. GALVESTON COUNTY MUNICIPAL UTILITY DISTRICT
NO. 61
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8143.001. 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. 61. Sec. 8143.002. NATURE OF DISTRICT. The district is a municipal utility district in Galveston County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Sec. 8143.003. 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. 8143.004. 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 Section 52, Article III, and Section 59, Article XVI, Texas Constitution. (b) The district is created to accomplish: (1) the same purposes as a municipal utility district as provided by Section 54.012, Water Code; (2) the same purposes as a navigation district created under Section 59, Article XVI, Texas Constitution, and operating under Chapters 60 and 62, Water Code; and (3) to the extent authorized by Section 52, Article III, Texas Constitution, the construction, acquisition, improvement, maintenance, or operation of macadamized, graveled, or paved roads or turnpikes, or improvements in aid of those roads or turnpikes, inside the district. Sec. 8143.005. 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.
[Sections 8143.006-8143.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8143.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors. (b) Except as provided by Section 8143.053, directors serve staggered four-year terms. Sec. 8143.052. ELECTION OF DIRECTORS. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected. Sec. 8143.053. INITIAL DIRECTORS. (a) The initial board consists of: (1) Andy Heard; (2) Steve Sheldon; (3) Stephanie Tharpe; (4) Larry Boudloche; and (5) Oliver Aldridge. (b) The terms of the first three directors named in Subsection (a) expire on the uniform election date in May 2006, and the terms of the last two directors named in Subsection (a) expire on the uniform election date in May 2008. (c) This section expires September 1, 2009.
[Sections 8143.054-8143.100 reserved for expansion]
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 8143.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8143.102. 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. 8143.103. NAVIGATION POWERS. The district may purchase, construct, acquire, own, operate, maintain, improve, or extend, inside and outside the district, canals, waterways, bulkheads, docks, and any other improvements or facilities necessary or convenient to accomplish the navigation purposes of the district authorized by Section 59, Article XVI, Texas Constitution. Sec. 8143.104. ROAD PROJECTS. (a) The district may construct, acquire, improve, maintain, or operate macadamized, graveled, or paved roads or turnpikes, or improvements in aid of those roads or turnpikes, inside the district. (b) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulatory ordinances of the municipality or county in whose jurisdiction the district is located. (c) The district may not undertake a road project unless each municipality or county in whose jurisdiction the district is located consents by ordinance or resolution. Sec. 8143.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section 54.016, Water Code, the district shall comply with all applicable requirements of any ordinance or resolution adopted by the city council that consents to the creation of the district or to the inclusion of lands within the district. Sec. 8143.106. LIMITATION ON USE OF EMINENT DOMAIN. The district may exercise the power of eminent domain outside the district only to acquire an easement necessary for underground water, sewage, or drainage facilities that serve the district.
[Sections 8143.107-8143.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8143.151. ELECTIONS REGARDING TAXES OR BONDS. (a) Except as provided by Section 8143.201(c), 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. Sec. 8143.152. AD VALOREM TAX. (a) If authorized at an election held under Section 8143.151, 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.
[Sections 8143.153-8143.200 reserved for expansion]
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8143.201. 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. (c) The district may not issue bonds to finance projects authorized by Section 8143.104 unless the issuance is approved by a vote of a two-thirds majority of the voters of the district voting at an election called for that purpose. (d) Bonds or other obligations issued or incurred to finance projects authorized by Section 8143.104 may not exceed one-fourth of the assessed value of the real property in the district. (e) Sections 49.181 and 49.182, Water Code, do not apply to a project undertaken by the district under Section 8143.104 or to bonds issued by the district to finance the project. Sec. 8143.202. 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. SECTION 2. The Galveston County Municipal Utility District No. 61 initially includes all the territory contained in the following area: Of 329.9550 acres of land being part of Subdivisions I, J, K, L, M, N, and O, of the KOHFELDTS RESUBDIVISION according to the map or plat thereof recorded in Volume 10, Page 35 of the Deed Records of Galveston County, Texas. Said 329.9550 acres being part of the tracts of land conveyed by deed dated March 22, 2004 from Kohfeldt family Limited Partnership, to Texas Gulf Coast Holdings I LP., as recorded in Galveston County Clerk's File No. GAC 2004020691, of the Deed Records of Galveston County, Texas. Said 329.9550 acres being situated in the Thomas W. Johnson Survey, James Haggard Survey, and the James Smith Survey Galveston County, Texas, and being more particularly described by metes and bounds as follows; (Bearings based plat calls of said Kohfeldts Resubdivision) BEGINNING at a point for corner at the intersection of the north line of F.M. 1764 with the northeasterly line of the G.H. & H. R.R. railroad right-of-way adjacent to State Highway 3; THENCE North 39° 12' 00" West, along the said northeasterly line of the G.H. & H. R.R. railroad right-of-way, for a distance of 557.48 feet to a to a point for corner; THENCE North, along the west line of said Haggard Survey, for a distance of 3,560.62 feet to a to a point for corner in the south line of 25th Avenue (R.O.W. 120') (also known as Loop 197), said to a point for corner being the northwest corner of the herein described tract; THENCE East, continuing along the south line of 25th Avenue (also known as Loop 197), for a distance of 5,752.59 feet to the northeast corner of the herein described tract; THENCE South, for a distance of 1,095.00 feet to a to a point for corner; THENCE West, for a distance of 1,320.00 feet to a to a point for corner in the common line of the Thomas W. Johnson Survey, and the James Smith Survey; THENCE South, along the common line of the Thomas W. Johnson Survey, and the James Smith Survey, for a distance of 1,155.00 feet to a to a point for corner; THENCE West, for a distance of 2,640.00 feet to a to a point for corner in the east line of the James Haggard Survey; THENCE South, along the east line of the James Haggard Survey, for a distance of 1,657.30 feet to a to a point for corner in the north line of said F.M. 1764; THENCE South 87° 48' 00" West along the north line of said F.M. 1764, for a distance of 1,441.31 feet to the PLACE OF BEGINNING of herein described tract of land and containing within these calls 14,372,838 square feet or 329.9550 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.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1801 passed the Senate on May 10, 2005, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 24, 2005, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1801 passed the House, with amendment, on May 20, 2005, by the following vote: Yeas 139, Nays 0, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor