Texas 2015 - 84th Regular

Texas Senate Bill SB1005 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Creighton S.B. No. 1005
2		-	(Keough)
	1	+	S.B. No. 1005
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		relating to the creation of the Montgomery County Municipal Utility
7	5		District No. 144; granting a limited power of eminent domain;
8	6		providing authority to issue bonds; providing authority to impose
9	7		assessments, fees, and taxes.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Subtitle F, Title 6, Special District Local Laws
12	10		Code, is amended by adding Chapter 7953 to read as follows:
13	11		CHAPTER 7953. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 144
14	12		SUBCHAPTER A. GENERAL PROVISIONS
15	13		Sec. 7953.001. DEFINITIONS. In this chapter:
16	14		(1) "Board" means the district's board of directors.
17	15		(2) "Commission" means the Texas Commission on
18	16		Environmental Quality.
19	17		(3) "Director" means a board member.
20	18		(4) "District" means the Montgomery County Municipal
21	19		Utility District No. 144.
22	20		Sec. 7953.002. NATURE OF DISTRICT. The district is a
23	21		municipal utility district created under Section 59, Article XVI,
24	22		Texas Constitution.
25	23		Sec. 7953.003. CONFIRMATION AND DIRECTORS' ELECTION
26	24		REQUIRED. The temporary directors shall hold an election to
27	25		confirm the creation of the district and to elect five permanent
28	26		directors as provided by Section 49.102, Water Code.
29	27		Sec. 7953.004. CONSENT OF MUNICIPALITY REQUIRED. The
30	28		temporary directors may not hold an election under Section 7953.003
31	29		until each municipality in whose corporate limits or
32	30		extraterritorial jurisdiction the district is located has
33	31		consented by ordinance or resolution to the creation of the
34	32		district and to the inclusion of land in the district.
35	33		Sec. 7953.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
36	34		(a) The district is created to serve a public purpose and benefit.
37	35		(b) The district is created to accomplish the purposes of:
38	36		(1) a municipal utility district as provided by
39	37		general law and Section 59, Article XVI, Texas Constitution; and
40	38		(2) Section 52, Article III, Texas Constitution, that
41	39		relate to the construction, acquisition, improvement, operation,
42	40		or maintenance of macadamized, graveled, or paved roads, or
43	41		improvements, including storm drainage, in aid of those roads.
44	42		Sec. 7953.006. INITIAL DISTRICT TERRITORY. (a) The
45	43		district is initially composed of the territory described by
46	44		Section 2 of the Act enacting this chapter.
47	45		(b) The boundaries and field notes contained in Section 2 of
48	46		the Act enacting this chapter form a closure. A mistake made in the
49	47		field notes or in copying the field notes in the legislative process
50	48		does not affect the district's:
51	49		(1) organization, existence, or validity;
52	50		(2) right to issue any type of bond for the purposes
53	51		for which the district is created or to pay the principal of and
54	52		interest on a bond;
55	53		(3) right to impose a tax; or
56	54		(4) legality or operation.
57	55		Sec. 7953.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT
58	56		REINVESTMENT ZONE. (a) The district is eligible to be included in
59	57		a tax increment reinvestment zone created under Chapter 311, Tax
60	58		Code.
61	59		(b) If the City of Conroe has created or creates a tax
62	60		increment reinvestment zone described by Subsection (a) that
63	61		includes all or part of the territory of the district, the City of
64	62		Conroe and the board of directors of the zone or a developer of
65	63		property within the tax increment reinvestment zone that receives
66	64		or will receive money from the tax increment fund, by contract with
67	65		the district, may grant money to the district from the tax increment
68	66		fund to be used for a permissible purpose of the district,
69	67		including:
70	68		(1) the right to pledge the money as security for a
71	69		bond or other obligation issued by the district; and
72	70		(2) any permissible purpose of a corporation under
73	71		Section 380.002(b), Local Government Code.
74	72		SUBCHAPTER B. BOARD OF DIRECTORS
75	73		Sec. 7953.051. GOVERNING BODY; TERMS. (a) The district is
76	74		governed by a board of five elected directors.
77	75		(b) Except as provided by Section 7953.052, directors serve
78	76		staggered four-year terms.
79	77		Sec. 7953.052. TEMPORARY DIRECTORS. (a) On or after the
80	78		effective date of the Act enacting this chapter, the owner or owners
81	79		of a majority of the assessed value of the real property in the
82	80		district may submit a petition to the commission requesting that
83	81		the commission appoint as temporary directors the five persons
84	82		named in the petition. The commission shall appoint as temporary
85	83		directors the five persons named in the petition.
86	84		(b) Temporary directors serve until the earlier of:
87	85		(1) the date permanent directors are elected under
88	86		Section 7953.003; or
89	87		(2) the fourth anniversary of the effective date of
90	88		the Act enacting this chapter.
91	89		(c) If permanent directors have not been elected under
92	90		Section 7953.003 and the terms of the temporary directors have
93	91		expired, successor temporary directors shall be appointed or
94	92		reappointed as provided by Subsection (d) to serve terms that
95	93		expire on the earlier of:
96	94		(1) the date permanent directors are elected under
97	95		Section 7953.003; or
98	96		(2) the fourth anniversary of the date of the
99	97		appointment or reappointment.
100	98		(d) If Subsection (c) applies, the owner or owners of a
101	99		majority of the assessed value of the real property in the district
102	100		may submit a petition to the commission requesting that the
103	101		commission appoint as successor temporary directors the five
104	102		persons named in the petition. The commission shall appoint as
105	103		successor temporary directors the five persons named in the
106	104		petition.
107	105		SUBCHAPTER C. POWERS AND DUTIES
108	106		Sec. 7953.101. GENERAL POWERS AND DUTIES. The district has
109	107		the powers and duties necessary to accomplish the purposes for
110	108		which the district is created.
111	109		Sec. 7953.102. MUNICIPAL UTILITY DISTRICT POWERS AND
112	110		DUTIES. The district has the powers and duties provided by the
113	111		general law of this state, including Chapters 49 and 54, Water Code,
114	112		applicable to municipal utility districts created under Section 59,
115	113		Article XVI, Texas Constitution.
116	114		Sec. 7953.103. AUTHORITY FOR ROAD PROJECTS. Under Section
117	115		52, Article III, Texas Constitution, the district may design,
118	116		acquire, construct, finance, issue bonds for, improve, operate,
119	117		maintain, and convey to this state, a county, or a municipality for
120	118		operation and maintenance macadamized, graveled, or paved roads, or
121	119		improvements, including storm drainage, in aid of those roads.
122	120		Sec. 7953.104. ROAD STANDARDS AND REQUIREMENTS. (a) A
123	121		road project must meet all applicable construction standards,
124	122		zoning and subdivision requirements, and regulations of each
125	123		municipality in whose corporate limits or extraterritorial
126	124		jurisdiction the road project is located.
127	125		(b) If a road project is not located in the corporate limits
128	126		or extraterritorial jurisdiction of a municipality, the road
129	127		project must meet all applicable construction standards,
130	128		subdivision requirements, and regulations of each county in which
131	129		the road project is located.
132	130		(c) If the state will maintain and operate the road, the
133	131		Texas Transportation Commission must approve the plans and
134	132		specifications of the road project.
135	133		Sec. 7953.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
136	134		OR RESOLUTION. (a) The district shall comply with all applicable
137	135		requirements of any ordinance or resolution that is adopted under
138	136		Section 54.016 or 54.0165, Water Code, and that consents to the
139	137		creation of the district or to the inclusion of land in the
140	138		district.
141	139		(b) In addition to all the rights and remedies provided by
142	140		other law, if the district violates the terms of an ordinance or
143	141		resolution described by Subsection (a), the municipality is
144	142		entitled to injunctive relief or a writ of mandamus issued by a
145	143		court requiring the district and the district's officials to
146	144		observe and comply with the terms of the ordinance or resolution.
147	145		Sec. 7953.106. EFFECT OF ANNEXATION BY CITY OF CONROE.
148	146		(a) The City of Conroe may annex all or part of the district into
149	147		its corporate limits without annexing the entire district under the
150	148		terms of a development agreement between the City of Conroe and the
151	149		owners of the land in the district that is covered by the
152	150		development agreement. If a development agreement is not executed
153	151		or the agreement has expired, nothing in this chapter limits the
154	152		right of the City of Conroe to annex the district.
155	153		(b) If the City of Conroe annexes all or part of the district
156	154		into its corporate limits:
157	155		(1) the district is not dissolved;
158	156		(2) the ability of the district to issue bonds is not
159	157		impaired or precluded; and
160	158		(3) unless otherwise approved by the board and the
161	159		governing body of the City of Conroe, the city:
162	160		(A) may not take over the property or other
163	161		assets of the district;
164	162		(B) may not assume any debts, liabilities, or
165	163		other obligations of the district;
166	164		(C) is not obligated to perform any functions of
167	165		the district; and
168	166		(D) is not obligated to pay a landowner or
169	167		developer for expenses incurred by the landowner or developer in
170	168		connection with the district that would otherwise be eligible for
171	169		reimbursement from the proceeds of bonds issued by the district.
172	170		(c) Notwithstanding Section 54.016(f)(2), Water Code, an
173	171		allocation agreement between the City of Conroe and the district
174	172		that provides for the allocation of the taxes or revenues of the
175	173		district and the city following the date of inclusion of all the
176	174		district's territory in the corporate limits of the city may
177	175		provide that the total annual ad valorem taxes collected by the city
178	176		and the district from taxable property in the district may exceed
179	177		the city's ad valorem tax on that property.
180	178		Sec. 7953.107. LIMITATION ON USE OF EMINENT DOMAIN. The
181	179		district may not exercise the power of eminent domain outside the
182	180		district without the written consent of the City of Conroe.
183	181		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
184	182		Sec. 7953.151. ELECTIONS REGARDING TAXES OR BONDS.
185	183		(a) The district may issue, without an election, bonds and other
186	184		obligations secured by revenue other than ad valorem taxes.
187	185		(b) The district must hold an election in the manner
188	186		provided by Chapters 49 and 54, Water Code, to obtain voter approval
189	187		before the district may impose an ad valorem tax or issue bonds
190	188		payable from ad valorem taxes.
191	189		(c) The district may not issue bonds payable from ad valorem
192	190		taxes to finance a road project unless the issuance is approved by a
193	191		vote of a two-thirds majority of the district voters voting at an
194	192		election held for that purpose.
195	193		Sec. 7953.152. OPERATION AND MAINTENANCE TAX. (a) If
196	194		authorized at an election held under Section 7953.151, the district
197	195		may impose an operation and maintenance tax on taxable property in
198	196		the district in accordance with Section 49.107, Water Code.
199	197		(b) The board shall determine the tax rate. The rate may not
200	198		exceed the rate approved at the election.
201	199		SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
202	200		Sec. 7953.201. AUTHORITY TO ISSUE BONDS AND OTHER
203	201		OBLIGATIONS. The district may issue bonds or other obligations
204	202		payable wholly or partly from ad valorem taxes, impact fees,
205	203		revenue, contract payments, tax increment payments, grants, or
206	204		other district money, or any combination of those sources, to pay
207	205		for any authorized district purpose.
208	206		Sec. 7953.202. TAXES FOR BONDS. At the time the district
209	207		issues bonds payable wholly or partly from ad valorem taxes, the
210	208		board shall provide for the annual imposition of a continuing
211	209		direct ad valorem tax, without limit as to rate or amount, while all
212	210		or part of the bonds are outstanding as required and in the manner
213	211		provided by Sections 54.601 and 54.602, Water Code.
214	212		Sec. 7953.203. BONDS FOR ROAD PROJECTS. At the time of
215	213		issuance, the total principal amount of bonds or other obligations
216	214		issued or incurred to finance road projects and payable from ad
217	215		valorem taxes may not exceed one-fourth of the assessed value of the
218	216		real property in the district.
219	217		SECTION 2. The Montgomery County Municipal Utility District
220	218		No. 144 initially includes all the territory contained in the
221	219		following area:
222	220		BEING a 186.839 acre tract of land (8,138,702 square feet) located
223	221		in the J. Hodge Survey, A- 19, Montgomery County, Texas, same said
224	222		tract being a portion of a called 553.735 acre partition tract
225	223		conveyed to Mallie Duff Hunt, et. al. and described as Exhibit "A"
226	224		in a Partition Deed recorded in Clerk's File Number 2003-124388 of
227	225		the Official Public Records of Real Property of Montgomery County,
228	226		Texas (OPRRPMC). Said 186.839 acre tract being more fully described
229	227		as follows, all bearings based on the Texas Coordinate System,
230	228		Central Zone (4203), NAD-83 (NA 2011) epoch 2010.00:
231	229		BEGINNING: At a found 3/4 inch iron pipe at the southeast corner of
232	230		said 553.735 acre tract of land, same being an interior corner of
233	231		Carriage Hills Section One Subdivision, recorded in Cabinet B,
234	232		Sheet 127 B of the Plat Records of Montgomery County, Texas (MCPR),
235	233		and on the common survey line of the C. Dugart Survey, A-170, and
236	234		the J. Hodge Survey, A-19;
237	235		THENCE:S 85°10'04" W, along and with the south line of said 553.735
238	236		acre tract, the above mentioned common survey line, at 1,059.15
239	237		feet, the northwest corner of the aforementioned C. Dugart Survey
240	238		A-170, and the northeast corner of the D. Thomas Survey, A-550, from
241	239		which a found 1/2 inch iron rod bears N 2°36'29" W, a distance of
242	240		8.95 feet, for the apparent lower northwest corner of said Carriage
243	241		Hills Section One Subdivision, and the apparent northeast corner of
244	242		Red Oak Ranch Section One, recorded in Cabinet I, Sheet 200-201 of
245	243		the Map Records of Montgomery County, Texas (MCMR), and continuing
246	244		along and with the south line of said 553.735 acre tract, the common
247	245		survey line of said J. Hodge Survey, A-19 and the D. Thomas Survey,
248	246		A-550, in all a total distance of 1,571.14 feet to a found 5/8 inch
249	247		iron rod which bears S 02°59'59" E, a distance of 0.16 feet from the
250	248		southwest corner of said 553.735 acre tract, same being the
251	249		southeast corner of a 123.052 acre tract conveyed to
252	250		Lawrence-Hunt-Thomas Interests, LTD. and described in a Partition
253	251		Deed as Exhibit "C", recorded in Clerk's File Number 2003-124388
254	252		(OPRRPMC).
255	253		THENCE:N 02°59'59" W, departing the south line of said 553.735 acre
256	254		tract, the common survey line, over and across said 553.735 acre
257	255		tract, at 10.26 feet passing the apparent north line of said Red Oak
258	256		Ranch Section One, in all a total distance of 4,504.60 feet to a
259	257		found 1/2 inch iron rod in the south line of a 60-foot wide road
260	258		easement recorded in Clerk's File Numbers 2003-124388 and
261	259		2003-131296 (OPRRPMC).
262	260		THENCE:N 43°19'31" E, along and with the south line of said 60-foot
263	261		wide road easement a distance of 2,137.34 feet to a found 1/2 inch
264	262		iron rod on the west line of Carriage Hills Subdivision, Sections
265	263		Two and Three, recorded in Cabinet B, Page 191 B (MCPR).
266	264		THENCE:S 03°14'10" E, along and with the west line of said Carriage
267	265		Hills Subdivision, Sections One, Two and Three, a distance of
268	266		5,930.39 feet to the POINT OF BEGINNING, and containing 186.839
269	267		acres of land, which includes 0.221 of an acre of land between the
270	268		apparent south line of this tract and the platted north lines of the
271	269		aforementioned Carriage Hills Subdivision Section One, and Red Oak
272	270		Ranch Subdivision
273	271		SECTION 3. (a) The legal notice of the intention to
274	272		introduce this Act, setting forth the general substance of this
275	273		Act, has been published as provided by law, and the notice and a
276	274		copy of this Act have been furnished to all persons, agencies,
277	275		officials, or entities to which they are required to be furnished
278	276		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
279	277		Government Code.
280	278		(b) The governor, one of the required recipients, has
281	279		submitted the notice and Act to the Texas Commission on
282	280		Environmental Quality.
283	281		(c) The Texas Commission on Environmental Quality has filed
284	282		its recommendations relating to this Act with the governor, the
285	283		lieutenant governor, and the speaker of the house of
286	284		representatives within the required time.
287	285		(d) All requirements of the constitution and laws of this
288	286		state and the rules and procedures of the legislature with respect
289	287		to the notice, introduction, and passage of this Act are fulfilled
290	288		and accomplished.
291	289		SECTION 4. (a) Section 7953.107, Special District Local
292	290		Laws Code, as added by Section 1 of this Act, takes effect only if
293	291		this Act receives a two-thirds vote of all the members elected to
294	292		each house.
295	293		(b) If this Act does not receive a two-thirds vote of all the
296	294		members elected to each house, Subchapter C, Chapter 7953, Special
297	295		District Local Laws Code, as added by Section 1 of this Act, is
298	296		amended by adding Section 7953.107 to read as follows:
299	297		Sec. 7953.107. NO EMINENT DOMAIN POWER. The district may
300	298		not exercise the power of eminent domain.
301	299		(c) This section is not intended to be an expression of a
302	300		legislative interpretation of the requirements of Section 17(c),
303	301		Article I, Texas Constitution.
304	302		SECTION 5. This Act takes effect immediately if it receives
305	303		a vote of two-thirds of all the members elected to each house, as
306	304		provided by Section 39, Article III, Texas Constitution. If this
307	305		Act does not receive the vote necessary for immediate effect, this
308	306		Act takes effect September 1, 2015.
	307	+	______________________________ ______________________________
	308	+	President of the Senate Speaker of the House
	309	+	I hereby certify that S.B. No. 1005 passed the Senate on
	310	+	May 8, 2015, by the following vote: Yeas 30, Nays 1.
	311	+	______________________________
	312	+	Secretary of the Senate
	313	+	I hereby certify that S.B. No. 1005 passed the House on
	314	+	May 22, 2015, by the following vote: Yeas 140, Nays 0, two
	315	+	present not voting.
	316	+	______________________________
	317	+	Chief Clerk of the House
	318	+	Approved:
	319	+	______________________________
	320	+	Date
	321	+	______________________________
	322	+	Governor