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  H.B. No. 4674
 
 
 
 
AN ACT
  relating to the creation of the Chambers County 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 8039 to read as follows:
  CHAPTER 8039.  CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8039.0101.  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 Chambers County Municipal
  Utility District No. 2.
         Sec. 8039.0102.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8039.0103.  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. 8039.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  8039.0103 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. 8039.0105.  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. 8039.0106.  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. 8039.0201.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8039.0202, directors
  serve staggered four-year terms.
         Sec. 8039.0202.  TEMPORARY DIRECTORS.  (a)  On or after the
  effective date of the Act enacting this chapter, 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 8039.0103; 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 8039.0103 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 8039.0103; 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. 8039.0301.  GENERAL POWERS AND DUTIES.  The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8039.0302.  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. 8039.0303.  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. 8039.0304.  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. 8039.0305.  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.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8039.0401.  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 8039.0403.
         (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. 8039.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 8039.0401, 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. 8039.0403.  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. 8039.0501.  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. 8039.0502.  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. 8039.0503.  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 Chambers County Municipal Utility District
  No. 2 initially includes all the territory contained in the
  following area:
         Being a 363.441 acre tract of land located in the B. Winfree
  Survey, Abstract No. 28, Chambers County, Texas; said 363.441 acre
  tract being all of a called 171.900 acre tract of land (Tract 1) and
  all of a called 191.541 acre tract of land (Tract 2) recorded in the
  name of Ameriport, LLC. in Document No. 2018-134001 of the Official
  Public Records of Chambers County (O.P.R.C.C.); said 363.441 acre
  tract being more particularly described as Tract 1 and Tract 2 by
  metes and bounds as follows (all bearings are referenced to the
  Texas Coordinate System, North American Datum 1983 (NAD 83), South
  Central Zone):
         Tract 1:
         Beginning at a called 5/8-inch iron rod at the northeast
  corner of said 171.900 acre tract and the northwest corner of a
  called 43.23 acre tract of land recorded in the name of Guy Pfitzner
  in Volume 1573, Page 416 of the O.P.R.C.C., and being on the
  southerly line of a called 254.14 acre tract of land recorded in the
  name of Grand Parkway/Kilgore Parkway, L.P. in Volume 1067, Page
  264 of the O.P.R.C.C.;
         1.  Thence, with the easterly line of said 171.900 acre tract
  and the westerly line of said 43.23 acre tract, South 02 degrees 47
  minutes 36 seconds East, a distance of 2,995.19 feet to the
  southeast corner of said 171.900 acre tract and the southwest
  corner of said 43.23 acre tract, and being on the northwesterly
  right-of-way line of FM 565 (width varies) as recorded in Volume
  121, Page 151 and 214 and Volume 978, Page 325 of the C.C.D.R.;
         2.  Thence, with the southeasterly line of said 171.900 acre
  tract and said northwesterly right-of-way line of FM 565, South 50
  degrees 13 minutes 52 seconds West, a distance of 856.17 feet;
         3.  Thence, continuing with said southeasterly line of the
  171.900 acre tract and said northwesterly right-of-way line of FM
  565, South 50 degrees 17 minutes 52 seconds West, a distance of
  1,904.70 feet to the southwesterly corner of said 171.900 acre
  tract and being at the intersection with the northeasterly
  right-of-way line of Needlepoint Road (width varies);
         4.  Thence, with the westerly line of said 171.900 acre tract
  and said easterly right-of-way line of Needlepoint Road, North 28
  degrees 59 minutes 14 seconds West, a distance of 214.63 feet to the
  most southerly corner of a called 27.650 acre tract of land recorded
  in the name of State of Texas in Volume 570, Page 546 and Volume 899,
  Page 415 of the O.P.R.C.C., and being on the easterly right-of-way
  line of State Highway 99 (Grand Parkway) (width varies);
         Thence, with the westerly line of said 171.900 acre tract and
  said easterly right-of-way line of State Highway 99, the following
  five (5) courses:
         5.  North 08 degrees 03 minutes 08 seconds West, a distance
  of 169.59 feet;
         6.  North 16 degrees 55 minutes 00 seconds East, a distance
  of 766.59 feet;
         7.  679.78 feet along the arc of a curve to the left, said
  curve having a central angle of 19 degrees 28 minutes 27 seconds, a
  radius of 2,000.00 feet and a chord that bears North 07 degrees 10
  minutes 49 seconds East, a distance of 676.51 feet;
         8.  North 02 degrees 33 minutes 28 seconds West, a distance
  of 1,718.97 feet;
         9.  1,206.61 feet along the arc of a curve to the right, said
  curve having a central angle of 10 degrees 02 minutes 11 seconds, a
  radius of 6,888.29 feet and a chord that bears North 02 degrees 27
  minutes 38 seconds East, a distance of 1,205.07 feet to the
  northwest corner of aforesaid 171.900 acre tract and the southwest
  corner of aforesaid 254.14 acre tract;
         10.  Thence, with the northerly line of said 171.900 acre
  tract and the southerly line of said 254.14 acre tract, North 87
  degrees 39 minutes 30 seconds East, a distance of 1,824.19 feet to
  the Point of Beginning and containing 171.900 acres of land in Tract
  1.
         Tract 2:
         Beginning at a called 5/8-inch iron rod at the southwest
  corner of aforesaid 191.541 acre tract and the northwest corner of a
  called 1.228 acre tract of land recorded in the name of Johland
  Investments, LLC. in Volume 1704, Page 156 of the O.P.R.C.C., and
  being on the northeasterly right-of-way line of FM 2354
  (120.00-feet wide) as recorded in Volume 191, Page 542 of the
  Chambers County Deed Records (C.C.D.R.);
         1.  Thence, with the southwesterly line of said 191.541 acre
  tract and said northeasterly right-of-way line of FM 2354, 485.65
  feet along the arc of a curve to the left, said curve having a
  central angle of 04 degrees 51 minutes 23 seconds, a radius of
  5,729.58 feet and a chord that bears North 37 degrees 33 minutes 03
  seconds West, a distance of 485.51 feet;
         2.  Thence, continuing with said southwesterly line of the
  191.541 acre tract and said northeasterly right-of-way line of FM
  2354, North 40 degrees 38 minutes 16 seconds West, a distance of
  857.53 feet to the southerly end of a cutback corner at the
  intersection with the southeasterly right-of-way line of aforesaid
  FM 565;
         3.  Thence, with said cutback, North 13 degrees 53 minutes 15
  seconds West, a distance of 111.07 feet to the northerly end of said
  cutback;
         4.  Thence, with the northwesterly line of said 191.541 and
  said southeasterly right-of-way line of FM 565, North 50 degrees 17
  minutes 52 seconds East, a distance of 1,842.85 feet;
         5.  Thence, continuing with said northwesterly line of the
  191.541 acre tract and said southeasterly right-of-way line, North
  50 degrees 13 minutes 52 seconds East, a distance of 1,471.18 feet
  to the most northerly corner of said 191.541 acre tract and the
  westerly corner of Tiffany Acres Section 2, a subdivision recorded
  in Volume A, Page 243 of the Chambers County Map Records (C.C.M.R.);
         6.  Thence, with the northeasterly line of said 191.541 acre
  tract, the southwesterly line of said Tiffany Acres Section 2, and
  the southwesterly line of a called 2.000 acre tract of land recorded
  in the name of David Michael McAdams and Jodie L. McAdams in Volume
  662, Page 363 of the O.P.R.C.C., South 39 degrees 41 minutes 39
  seconds East, a distance of 2,744.85 feet to the most easterly
  northeast corner of said 191.541 acre tract and the southerly
  corner of said 2.000 acre tract, and being on the westerly line of a
  called 2.000 acre tract of land recorded in the name of Norberto
  Pagan and Delia Pagan in Volume 236, Page 460 of the O.P.R.C.C.;
         7.  Thence, with the easterly line of said 191.541 acre
  tract, the westerly line of said 2.000 acre tract, the westerly line
  of a called 1.000 acre tract of land recorded in the name of
  Valentin Garcia and Hilda A. Garcia in Volume 236, Page 474 of the
  O.P.R.C.C., the westerly line of a called 1.000 acre tract of land
  recorded in the name of Wyman Tod Stephens in Volume 1215, Page 524
  of the O.P.R.C.C., the westerly line of a called 2.00 acre tract of
  land recorded in the name of Graciela Hurtado Reyna in Volume 1502,
  Page 625 of the O.P.R.C.C., and the westerly line of a called 1.9912
  acre tract of land recorded in the name of Dennis Ray Peting and
  Drena Lee Peting in Volume 150, Page 218 of the O.P.R.C.C., South 02
  degrees 45 minutes 29 seconds East, a distance of 637.48 feet to the
  most easterly southeast corner of said 191.541 acre tract and the
  northeast corner of a called 7.965 acre tract recorded in the name
  of NEQ Investments, LLC. in Volume 952, Page 729 of the O.P.R.C.C.;
         8.  Thence, with the southerly line of said 191.541 acre
  tract and the northerly line of said 7.965 acre tract, South 86
  degrees 48 minutes 29 seconds West, a distance of 1,085.42 feet to
  an interior corner of said 191.541 acre tract and the northwest
  corner of said 7.965 acre tract;
         9.  Thence, with an easterly line of said 191.541 acre tract
  and the westerly line of said 7.965 acre tract, South 03 degrees 11
  minutes 31 seconds East, a distance of 320.00 feet to the most
  southerly southeast corner of said 191.541 acre tract, the
  southwest corner of said 7.965 acre tract, and the northeast corner
  of a called 8.66 acre tract of land recorded in the name of David L.
  Gamble in Volume 337, Page 419 of the O.P.R.C.C.;
         10.  Thence, with the southerly line of said 191.541 acre
  tract, the northerly line of said 8.66 acre tract, the northerly
  line of a called 1.7 acre tract recorded in the name of General
  Telephone Company (Verizon Communications-Texas) in Volume 307,
  Page 642 of the O.P.R.C.C., the northerly line of a called 2.1681
  acre tract of land recorded in the name of David Schaffer and wife,
  Donna Schaffer in Volume 27, Page 509 of the O.P.R.C.C., and the
  northerly line of aforesaid 1.228 acre tract, South 86 degrees 48
  minutes 29 seconds West, a distance of 2,389.16 feet to the Point of
  Beginning and containing 191.541 acres of land in Tract 2.
         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)  If this Act does not receive a two-thirds
  vote of all the members elected to each house, Subchapter C, Chapter
  8039, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 8039.0306 to read as follows:
         Sec. 8039.0306.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (b)  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, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4674 was passed by the House on April
  24, 2019, by the following vote:  Yeas 137, Nays 7, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4674 on May 24, 2019, by the following vote:  Yeas 129, Nays 11,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4674 was passed by the Senate, with
  amendments, on May 15, 2019, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor