By: Creighton S.B. No. 1005
(In the Senate - Filed March 5, 2015; March 10, 2015, read
first time and referred to Committee on Intergovernmental
Relations; April 30, 2015, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
April 30, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1005 By: Lucio
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 144; 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 7953 to read as follows:
CHAPTER 7953. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 144
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7953.001. 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 Montgomery County Municipal
Utility District No. 144.
Sec. 7953.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7953.003. CONFIRMATION AND DIRECTORS' 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. 7953.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 7953.003
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. 7953.005. 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. 7953.006. 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.
Sec. 7953.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT
REINVESTMENT ZONE. (a) The district is eligible to be included in
a tax increment reinvestment zone created under Chapter 311, Tax
Code.
(b) If the City of Conroe has created or creates a tax
increment reinvestment zone described by Subsection (a) that
includes all or part of the territory of the district, the City of
Conroe and the board of directors of the zone or a developer of
property within the tax increment reinvestment zone that receives
or will receive money from the tax increment fund, by contract with
the district, may grant money to the district from the tax increment
fund to be used for a permissible purpose of the district,
including:
(1) the right to pledge the money as security for a
bond or other obligation issued by the district; and
(2) any permissible purpose of a corporation under
Section 380.002(b), Local Government Code.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7953.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 7953.052, directors serve
staggered four-year terms.
Sec. 7953.052. 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 7953.003; 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 7953.003 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 7953.003; 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. 7953.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7953.102. 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. 7953.103. 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. 7953.104. 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. 7953.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
OR RESOLUTION. (a) 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.
(b) In addition to all the rights and remedies provided by
other law, if the district violates the terms of an ordinance or
resolution described by Subsection (a), the municipality is
entitled to injunctive relief or a writ of mandamus issued by a
court requiring the district and the district's officials to
observe and comply with the terms of the ordinance or resolution.
Sec. 7953.106. EFFECT OF ANNEXATION BY CITY OF CONROE.
(a) The City of Conroe may annex all or part of the district into
its corporate limits without annexing the entire district under the
terms of a development agreement between the City of Conroe and the
owners of the land in the district that is covered by the
development agreement. If a development agreement is not executed
or the agreement has expired, nothing in this chapter limits the
right of the City of Conroe to annex the district.
(b) If the City of Conroe annexes all or part of the district
into its corporate limits:
(1) the district is not dissolved;
(2) the ability of the district to issue bonds is not
impaired or precluded; and
(3) unless otherwise approved by the board and the
governing body of the City of Conroe, the city:
(A) may not take over the property or other
assets of the district;
(B) may not assume any debts, liabilities, or
other obligations of the district;
(C) is not obligated to perform any functions of
the district; and
(D) is not obligated to pay a landowner or
developer for expenses incurred by the landowner or developer in
connection with the district that would otherwise be eligible for
reimbursement from the proceeds of bonds issued by the district.
(c) Notwithstanding Section 54.016(f)(2), Water Code, an
allocation agreement between the City of Conroe and the district
that provides for the allocation of the taxes or revenues of the
district and the city following the date of inclusion of all the
district's territory in the corporate limits of the city may
provide that the total annual ad valorem taxes collected by the city
and the district from taxable property in the district may exceed
the city's ad valorem tax on that property.
Sec. 7953.107. LIMITATION ON USE OF EMINENT DOMAIN. The
district may not exercise the power of eminent domain outside the
district without the written consent of the City of Conroe.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7953.151. ELECTIONS REGARDING TAXES OR BONDS.
(a) The district may issue, without an election, bonds and other
obligations secured by revenue other than ad valorem taxes.
(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. 7953.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7953.151, 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.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7953.201. 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, tax increment payments, grants, or
other district money, or any combination of those sources, to pay
for any authorized district purpose.
Sec. 7953.202. 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. 7953.203. 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 Montgomery County Municipal Utility District
No. 144 initially includes all the territory contained in the
following area:
BEING a 186.839 acre tract of land (8,138,702 square feet) located
in the J. Hodge Survey, A- 19, Montgomery County, Texas, same said
tract being a portion of a called 553.735 acre partition tract
conveyed to Mallie Duff Hunt, et. al. and described as Exhibit "A"
in a Partition Deed recorded in Clerk's File Number 2003-124388 of
the Official Public Records of Real Property of Montgomery County,
Texas (OPRRPMC). Said 186.839 acre tract being more fully described
as follows, all bearings based on the Texas Coordinate System,
Central Zone (4203), NAD-83 (NA 2011) epoch 2010.00:
BEGINNING: At a found 3/4 inch iron pipe at the southeast corner of
said 553.735 acre tract of land, same being an interior corner of
Carriage Hills Section One Subdivision, recorded in Cabinet B,
Sheet 127 B of the Plat Records of Montgomery County, Texas (MCPR),
and on the common survey line of the C. Dugart Survey, A-170, and
the J. Hodge Survey, A-19;
THENCE:S 85°10'04" W, along and with the south line of said 553.735
acre tract, the above mentioned common survey line, at 1,059.15
feet, the northwest corner of the aforementioned C. Dugart Survey
A-170, and the northeast corner of the D. Thomas Survey, A-550, from
which a found 1/2 inch iron rod bears N 2°36'29" W, a distance of
8.95 feet, for the apparent lower northwest corner of said Carriage
Hills Section One Subdivision, and the apparent northeast corner of
Red Oak Ranch Section One, recorded in Cabinet I, Sheet 200-201 of
the Map Records of Montgomery County, Texas (MCMR), and continuing
along and with the south line of said 553.735 acre tract, the common
survey line of said J. Hodge Survey, A-19 and the D. Thomas Survey,
A-550, in all a total distance of 1,571.14 feet to a found 5/8 inch
iron rod which bears S 02°59'59" E, a distance of 0.16 feet from the
southwest corner of said 553.735 acre tract, same being the
southeast corner of a 123.052 acre tract conveyed to
Lawrence-Hunt-Thomas Interests, LTD. and described in a Partition
Deed as Exhibit "C", recorded in Clerk's File Number 2003-124388
(OPRRPMC).
THENCE:N 02°59'59" W, departing the south line of said 553.735 acre
tract, the common survey line, over and across said 553.735 acre
tract, at 10.26 feet passing the apparent north line of said Red Oak
Ranch Section One, in all a total distance of 4,504.60 feet to a
found 1/2 inch iron rod in the south line of a 60-foot wide road
easement recorded in Clerk's File Numbers 2003-124388 and
2003-131296 (OPRRPMC).
THENCE:N 43°19'31" E, along and with the south line of said 60-foot
wide road easement a distance of 2,137.34 feet to a found 1/2 inch
iron rod on the west line of Carriage Hills Subdivision, Sections
Two and Three, recorded in Cabinet B, Page 191 B (MCPR).
THENCE:S 03°14'10" E, along and with the west line of said Carriage
Hills Subdivision, Sections One, Two and Three, a distance of
5,930.39 feet to the POINT OF BEGINNING, and containing 186.839
acres of land, which includes 0.221 of an acre of land between the
apparent south line of this tract and the platted north lines of the
aforementioned Carriage Hills Subdivision Section One, and Red Oak
Ranch Subdivision
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 7953.107, 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 7953, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 7953.107 to read as follows:
Sec. 7953.107. 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, 2015.
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