S.B. No. 1038

	AN ACT
	relating to the creation of the Brazoria-Fort Bend Counties
	Municipal Utility District No. 3; 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 8075 to read as follows:
	CHAPTER 8075. BRAZORIA-FORT BEND COUNTIES MUNICIPAL UTILITY
	DISTRICT NO. 3
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 8075.0101.  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 Brazoria-Fort Bend Counties
	Municipal Utility District No. 3.
	Sec. 8075.0102.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 8075.0103.  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. 8075.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section
	8075.0103 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. 8075.0105.  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. 8075.0106.  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. 8075.0201.  GOVERNING BODY; TERMS.  (a)  The district
	is governed by a board of five elected directors.
	(b)  Except as provided by Section 8075.0202, directors
	serve staggered four-year terms.
	Sec. 8075.0202.  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 8075.0103; or
	(2)  September 1, 2023.
	(c)  If permanent directors have not been elected under
	Section 8075.0103 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 8075.0103; 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. 8075.0301.  GENERAL POWERS AND DUTIES.  The district
	has the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 8075.0302.  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. 8075.0303.  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. 8075.0304.  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. 8075.0305.  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. 8075.0401.  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 8075.0403.
	(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. 8075.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 8075.0401, 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. 8075.0403.  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. 8075.0501.  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. 8075.0502.  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. 8075.0503.  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 Brazoria-Fort Bend Counties Municipal
	Utility District No. 3 initially includes all the territory
	contained in the following area:
	Being a tract containing 362.666 acres of land,
	located in the William Hall Survey, Abstract 31, in
	Fort Bend County, Texas and Abstract 713 in Brazoria
	County, Texas; Said 362.666 acre tract being a call
	363.942 acre tract recorded in the name of
	J.H.Caldwell, et al in Volume 796, Page 565 of the
	Official Records of Fort Bend County (O.R.F.B.C.) and
	being Lots 1, 2, 3, 4, 7, 11, 12 and a portion of Lot 6,
	T.W. & J.H.B. House Subdivision, a subdivision
	recorded in Volume 7, Page 301 of the Fort Bend County
	Deed Records (F.B.C.D.R.); Said 362.666 acre tract
	being more particularly described by metes and bounds
	as follows (bearings being based on the Texas
	Coordinate System, South Central Zone, NAD 83, as
	derived from GPS Observations):
	Beginning at a 2-inch iron pipe found at the
	northeasterly corner of a call 1.284 acre tract
	recorded in the name of Fort Bend County Municipal
	Utility District Number 141 in File Number 2018043550
	of the O.R.F.B.C., the southeasterly corner of a call
	48.6 acre tract recorded in the name of Emma Ruth Bly
	in File Number 2004149678 of the O.R.F.B.C., the
	southerly southwest corner of a call 484.4229 acre
	tract recorded in the name of Hannover Estates, LTD. in
	File Number 2002140473 of the O.R.F.B.C. and being the
	southeasterly corner of the David Fitzgerald League,
	Abstract 25, the southwesterly corner of the I.&G.N.
	R.R. Co. Survey, Abstract 352 and being on the
	northerly line of the William Hall Survey, Abstract
	31, from which a 3/4-inch iron rod found at the
	northeasterly corner of Reserve "A", Fort Bend ISD
	Ferndell Henry Center for Learning, a subdivision
	recorded in Plat Number 20110173 of the Fort Bend
	County Plat Records (F.B.C.P.R.), bears South 86
	degrees 55 minutes 29 seconds West, a distance of
	175.06 feet;
	Thence, with the northerly line of said William Hall
	Survey and with the southerly line of aforesaid
	484.4229 acre tract and a call 17.478 acre tract
	recorded in the name of JNC Development, Inc. in File
	Number 2017115756 of the O.R.F.B.C., North 86 degrees
	55 minutes 29 seconds East, at a distance of
	1755.20 pass a found 5/8-inch iron rod with "Miller"
	cap, at a distance of 2340.21 feet pass a found
	5/8-inch iron rod with "Miller" cap, at a distance of
	3151.64 feet pass a found 5/8-inch iron rod with
	"Miller" cap, at a distance of 3753.58 feet pass a
	found 5/8-inch iron rod with "Miller" cap, at a
	distance of 4801.72 feet pass the Fort Bend/Brazoria
	County line, in all, a distance of 5137.14 feet to a
	5/8-inch iron rod set at the northeast corner of
	aforesaid William Hall Survey, the southeasterly
	corner of aforesaid 484.4229 acre tract and being the
	northeasterly corner of aforesaid Lot 1;
	Thence, with the easterly line of said William Hall
	Survey, South 03 degrees 04 minutes 56 seconds East, a
	distance of 1591.83 feet to a 2-inch PVC stand pipe
	found at the southeasterly corner of aforesaid Lot 1
	and the northeasterly corner of Lot 9, aforesaid T.W. &
	J.H.B. House Subdivision;
	Thence, with the southerly line of aforesaid Lots 1 and
	2, South 86 degrees 55 minutes 29 seconds West, at a
	distance of 775.90 feet pass the aforesaid Fort
	Bend/Brazoria County line, in all, a distance of
	2735.60 feet to a 2-inch PVC stand pipe found at the
	common corner of aforesaid Lots 2, 3, 7 and Lot 8,
	aforesaid T.W. & J.H.B. House Subdivision;
	Thence, with the easterly line of said Lot 7, South 03
	degrees 04 minutes 56 seconds East, a distance of
	1591.23 feet to a 2-inch PVC stand pipe found at the
	common corner of aforesaid Lots 7, 8, 11 and 12;
	Thence, with the common line between Lots 8 and 11,
	North 86 degrees 55 minutes 29 seconds East, a distance
	of 1367.28 feet to a 2-inch PVC stand pipe found at the
	common corner of aforesaid Lots 8, 9, 11 and Lot 10,
	aforesaid T.W. & J.H.B. House Subdivision;
	Thence, with the common line between aforesaid Lots 10
	and 11, South 03 degrees 04 minutes 56 seconds East, a
	distance of 1592.64 feet to a 3/4-inch iron pipe found
	at the common corner of aforesaid Lots 10 and 11 and
	Lots 20 and 21, aforesaid T.W. & J.H.B. House
	Subdivision;
	Thence, with the southerly line of aforesaid Lot 11,
	South 86 degrees 55 minutes 29 seconds West, a distance
	of 1367.22 feet to a 5/8-inch iron rod set at the
	common corner of aforesaid Lots 11, 12, 20 and Lot 19,
	aforesaid T.W. & J.H.B. House Subdivision and being
	the easterly northeast corner of a call 91.100 acre
	tract recorded in the name of Forestar (USA) Real
	Estate Group, Inc. in File Number 2017121652 of the
	O.R.F.B.C.;
	Thence, with the northerly and easterly lines of said
	91.100 acre tract, the following four (4) courses:
	1)  South 86 degrees 42 minutes 23 seconds West, at a
	distance of 29.30 feet pass a found 1/2-inch iron rod,
	in all, a distance of 1368.62 feet to a found 5/8-inch
	iron rod;
	2)  North 03 degrees 03 minutes 31 seconds West, a
	distance of 1594.92 feet to a found 5/8-inch iron rod;
	3)  South 86 degrees 57 minutes 25 seconds West, a
	distance of 675.85 feet to a 5/8-inch iron rod set;
	4)  South 86 degrees 48 minutes 40 seconds West, a
	distance of 3.88 feet to a 5/8-inch iron rod found at
	the southeasterly corner of a call 162.2524 acre tract
	recorded in the name of Hannover Estates, LTD. in File
	Number 2004018462 of the O.R.F.B.C.;
	Thence, with the easterly lines of said 162.2524 acre
	tract, the following three (3) courses:
	1)  North 03 degrees 04 minutes 56 seconds West, a
	distance of 1593.59 feet to a 5/8-inch iron rod set;
	2)  South 86 degrees 57 minutes 10 seconds West, a
	distance of 353.80 feet to a 5/8-inch iron with cap
	found;
	3)  North 03 degrees 05 minutes 12 seconds West, at a
	distance of 1272.29 feet pass the southeasterly corner
	of aforesaid 1.284 acre tract, in all, a distance of
	1591.86 feet to the POINT OF BEGINNING and containing
	362.666 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.  (a)  If this Act does not receive a two-thirds
	vote of all the members elected to each house, Subchapter C, Chapter
	8075, Special District Local Laws Code, as added by Section 1 of
	this Act, is amended by adding Section 8075.0306 to read as follows:
	Sec. 8075.0306.  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 September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1038 passed the Senate on
	April 26, 2019, by the following vote:  Yeas 29, Nays 1.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1038 passed the House on
	May 14, 2019, by the following vote:  Yeas 121, Nays 20,
	two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor