Texas 2019 - 86th Regular

Texas House Bill HB2380 Compare Versions

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1-H.B. No. 2380
1+By: Metcalf (Senate Sponsor - Nichols) H.B. No. 2380
2+ (In the Senate - Received from the House April 29, 2019;
3+ April 29, 2019, read first time and referred to Committee on
4+ Intergovernmental Relations; May 9, 2019, reported favorably by
5+ the following vote: Yeas 7, Nays 0; May 9, 2019, sent to printer.)
6+Click here to see the committee vote
27
38
9+ A BILL TO BE ENTITLED
410 AN ACT
511 relating to the creation of the Montgomery County Municipal Utility
612 District No. 173; granting a limited power of eminent domain;
713 providing authority to issue bonds; providing authority to impose
814 assessments, fees, and taxes.
915 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1016 SECTION 1. Subtitle F, Title 6, Special District Local Laws
1117 Code, is amended by adding Chapter 8077 to read as follows:
1218 CHAPTER 8077. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 173
1319 SUBCHAPTER A. GENERAL PROVISIONS
1420 Sec. 8077.0101. DEFINITIONS. In this chapter:
1521 (1) "Board" means the district's board of directors.
1622 (2) "Commission" means the Texas Commission on
1723 Environmental Quality.
1824 (3) "Director" means a board member.
1925 (4) "District" means the Montgomery County Municipal
2026 Utility District No. 173.
2127 Sec. 8077.0102. NATURE OF DISTRICT. The district is a
2228 municipal utility district created under Section 59, Article XVI,
2329 Texas Constitution.
2430 Sec. 8077.0103. CONFIRMATION AND DIRECTOR ELECTION
2531 REQUIRED. The temporary directors shall hold an election to
2632 confirm the creation of the district and to elect five permanent
2733 directors as provided by Section 49.102, Water Code.
2834 Sec. 8077.0104. CONSENT OF MUNICIPALITY REQUIRED. The
2935 temporary directors may not hold an election under Section
3036 8077.0103 until each municipality in whose corporate limits or
3137 extraterritorial jurisdiction the district is located has
3238 consented by ordinance or resolution to the creation of the
3339 district and to the inclusion of land in the district.
3440 Sec. 8077.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
3541 (a) The district is created to serve a public purpose and benefit.
3642 (b) The district is created to accomplish the purposes of:
3743 (1) a municipal utility district as provided by
3844 general law and Section 59, Article XVI, Texas Constitution; and
3945 (2) Section 52, Article III, Texas Constitution, that
4046 relate to the construction, acquisition, improvement, operation,
4147 or maintenance of macadamized, graveled, or paved roads, or
4248 improvements, including storm drainage, in aid of those roads.
4349 Sec. 8077.0106. INITIAL DISTRICT TERRITORY. (a) The
4450 district is initially composed of the territory described by
4551 Section 2 of the Act enacting this chapter.
4652 (b) The boundaries and field notes contained in Section 2 of
4753 the Act enacting this chapter form a closure. A mistake made in the
4854 field notes or in copying the field notes in the legislative process
4955 does not affect the district's:
5056 (1) organization, existence, or validity;
5157 (2) right to issue any type of bond for the purposes
5258 for which the district is created or to pay the principal of and
5359 interest on a bond;
5460 (3) right to impose a tax; or
5561 (4) legality or operation.
5662 SUBCHAPTER B. BOARD OF DIRECTORS
5763 Sec. 8077.0201. GOVERNING BODY; TERMS. (a) The district is
5864 governed by a board of five elected directors.
5965 (b) Except as provided by Section 8077.0202, directors
6066 serve staggered four-year terms.
6167 Sec. 8077.0202. TEMPORARY DIRECTORS. (a) The temporary
6268 board consists of:
6369 (1) Will Holstein;
6470 (2) Adam Flaaten;
6571 (3) Juan Galvan;
6672 (4) Lisa Nickel; and
6773 (5) Justin Hausman.
6874 (b) Temporary directors serve until the earlier of:
6975 (1) the date permanent directors are elected under
7076 Section 8077.0103; or
7177 (2) the fourth anniversary of the effective date of
7278 the Act enacting this chapter.
7379 (c) If permanent directors have not been elected under
7480 Section 8077.0103 and the terms of the temporary directors have
7581 expired, successor temporary directors shall be appointed or
7682 reappointed as provided by Subsection (d) to serve terms that
7783 expire on the earlier of:
7884 (1) the date permanent directors are elected under
7985 Section 8077.0103; or
8086 (2) the fourth anniversary of the date of the
8187 appointment or reappointment.
8288 (d) If Subsection (c) applies, the owner or owners of a
8389 majority of the assessed value of the real property in the district
8490 may submit a petition to the commission requesting that the
8591 commission appoint as successor temporary directors the five
8692 persons named in the petition. The commission shall appoint as
8793 successor temporary directors the five persons named in the
8894 petition.
8995 SUBCHAPTER C. POWERS AND DUTIES
9096 Sec. 8077.0301. GENERAL POWERS AND DUTIES. The district
9197 has the powers and duties necessary to accomplish the purposes for
9298 which the district is created.
9399 Sec. 8077.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
94100 DUTIES. The district has the powers and duties provided by the
95101 general law of this state, including Chapters 49 and 54, Water Code,
96102 applicable to municipal utility districts created under Section 59,
97103 Article XVI, Texas Constitution.
98104 Sec. 8077.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
99105 52, Article III, Texas Constitution, the district may design,
100106 acquire, construct, finance, issue bonds for, improve, operate,
101107 maintain, and convey to this state, a county, or a municipality for
102108 operation and maintenance macadamized, graveled, or paved roads, or
103109 improvements, including storm drainage, in aid of those roads.
104110 Sec. 8077.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
105111 road project must meet all applicable construction standards,
106112 zoning and subdivision requirements, and regulations of each
107113 municipality in whose corporate limits or extraterritorial
108114 jurisdiction the road project is located.
109115 (b) If a road project is not located in the corporate limits
110116 or extraterritorial jurisdiction of a municipality, the road
111117 project must meet all applicable construction standards,
112118 subdivision requirements, and regulations of each county in which
113119 the road project is located.
114120 (c) If the state will maintain and operate the road, the
115121 Texas Transportation Commission must approve the plans and
116122 specifications of the road project.
117123 Sec. 8077.0305. COMPLIANCE WITH MUNICIPAL CONSENT
118124 ORDINANCE OR RESOLUTION. The district shall comply with all
119125 applicable requirements of any ordinance or resolution that is
120126 adopted under Section 54.016 or 54.0165, Water Code, and that
121127 consents to the creation of the district or to the inclusion of land
122128 in the district.
123129 Sec. 8077.0306. DIVISION OF DISTRICT. (a) The district may
124130 be divided into two or more new districts only if the district:
125131 (1) has no outstanding bonded debt; and
126132 (2) is not imposing ad valorem taxes.
127133 (b) This chapter applies to any new district created by the
128134 division of the district, and a new district has all the powers and
129135 duties of the district.
130136 (c) Any new district created by the division of the district
131137 may, at the time the new district is created, contain only:
132138 (1) land within the area described by Section 2 of the
133139 Act enacting this chapter; or
134140 (2) any land adjacent to the area described by Section
135141 2 of the Act enacting this chapter if that adjacent land is:
136142 (A) not within the extraterritorial jurisdiction
137143 of a city; or
138144 (B) within the extraterritorial jurisdiction of
139145 a city and that adjacent land has been approved for inclusion in the
140146 district under the consent ordinance or resolution adopted by a
141147 city under Section 8077.0104.
142148 (d) The board, on its own motion or on receipt of a petition
143149 signed by the owner or owners of a majority of the assessed value of
144150 the real property in the district, may adopt an order dividing the
145151 district.
146152 (e) The board may adopt an order dividing the district
147153 before or after the date the board holds an election under Section
148154 8077.0103 to confirm the district's creation.
149155 (f) An order dividing the district must:
150156 (1) name each new district;
151157 (2) include the metes and bounds description of the
152158 territory of each new district;
153159 (3) appoint temporary directors for each new district;
154160 and
155161 (4) provide for the division of assets and liabilities
156162 between or among the new districts.
157163 (g) On or before the 30th day after the date of adoption of
158164 an order dividing the district, the district shall file the order
159165 with the Texas Commission on Environmental Quality and record the
160166 order in the real property records of each county in which the
161167 district is located.
162168 (h) Any new district created by the division of the district
163169 shall hold a confirmation and directors' election as required by
164170 Section 8077.0103.
165171 (i) Municipal consent by a city is not required for the
166172 creation of any new district created under this section.
167173 (j) Any new district created by the division of the district
168174 must hold an election as required by this chapter to obtain voter
169175 approval before the district may impose a maintenance tax or issue
170176 bonds payable wholly or partly from ad valorem taxes.
171177 (k) If the voters of a new district do not confirm the
172178 creation of the new district, the assets, obligations, territory,
173179 and governance of the new district revert to that of the original
174180 district.
175181 Sec. 8077.0307. LIMITATION ON USE OF EMINENT DOMAIN. The
176182 district may not exercise the power of eminent domain outside the
177183 district boundaries to acquire a site or easement for:
178184 (1) a recreational facility, as defined by Section
179185 49.462, Water Code; or
180186 (2) a road project authorized by Section 8077.0303.
181187 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
182188 Sec. 8077.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
183189 The district may issue, without an election, bonds and other
184190 obligations secured by:
185191 (1) revenue other than ad valorem taxes; or
186192 (2) contract payments described by Section 8077.0403.
187193 (b) The district must hold an election in the manner
188194 provided by Chapters 49 and 54, Water Code, to obtain voter approval
189195 before the district may impose an ad valorem tax or issue bonds
190196 payable from ad valorem taxes.
191197 (c) The district may not issue bonds payable from ad valorem
192198 taxes to finance a road project unless the issuance is approved by a
193199 vote of a two-thirds majority of the district voters voting at an
194200 election held for that purpose.
195201 Sec. 8077.0402. OPERATION AND MAINTENANCE TAX. (a) If
196202 authorized at an election held under Section 8077.0401, the
197203 district may impose an operation and maintenance tax on taxable
198204 property in the district in accordance with Section 49.107, Water
199205 Code.
200206 (b) The board shall determine the tax rate. The rate may not
201207 exceed the rate approved at the election.
202208 Sec. 8077.0403. CONTRACT TAXES. (a) In accordance with
203209 Section 49.108, Water Code, the district may impose a tax other than
204210 an operation and maintenance tax and use the revenue derived from
205211 the tax to make payments under a contract after the provisions of
206212 the contract have been approved by a majority of the district voters
207213 voting at an election held for that purpose.
208214 (b) A contract approved by the district voters may contain a
209215 provision stating that the contract may be modified or amended by
210216 the board without further voter approval.
211217 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
212218 Sec. 8077.0501. AUTHORITY TO ISSUE BONDS AND OTHER
213219 OBLIGATIONS. The district may issue bonds or other obligations
214220 payable wholly or partly from ad valorem taxes, impact fees,
215221 revenue, contract payments, grants, or other district money, or any
216222 combination of those sources, to pay for any authorized district
217223 purpose.
218224 Sec. 8077.0502. TAXES FOR BONDS. At the time the district
219225 issues bonds payable wholly or partly from ad valorem taxes, the
220226 board shall provide for the annual imposition of a continuing
221227 direct ad valorem tax, without limit as to rate or amount, while all
222228 or part of the bonds are outstanding as required and in the manner
223229 provided by Sections 54.601 and 54.602, Water Code.
224230 Sec. 8077.0503. BONDS FOR ROAD PROJECTS. At the time of
225231 issuance, the total principal amount of bonds or other obligations
226232 issued or incurred to finance road projects and payable from ad
227233 valorem taxes may not exceed one-fourth of the assessed value of the
228234 real property in the district.
229235 SECTION 2. The Montgomery County Municipal Utility District
230236 No. 173 initially includes all the territory contained in the
231237 following area:
232238 A METES & BOUNDS description of a certain 170.1 acre (7,411,386
233239 square feet) tract of land situated in the Joseph Lindley Survey,
234240 Abstract No. 25 in Montgomery County, Texas, being all of a called
235241 169.059 acre tract conveyed to Ranch Hill Texas, LLC by Special
236242 Warranty Deed recorded in Clerk's File No. 2018049384, Montgomery
237243 County Official Public Records of Real Property; said 170.1 acre
238244 (7,411,386 square feet) tract of land being more particularly
239245 described as follows with all bearings being based on the Texas
240246 Coordinate System, Central Zone, NAD 83:
241247 BEGINNING at a 1/2-inch iron rod found being the southwest corner of
242248 a called 10.00 acre tract conveyed to Robert W. Bucher by Warranty
243249 Deed recorded in Clerk's File No. 2002016103, Montgomery County
244250 Official Public Records of Real Property, being in the north
245251 right-of-way of Calvary Road (based on a width of 80 feet), and
246252 being the southeast corner of said 169.059 acre tract and the herein
247253 described tract;
248254 THENCE, North 77°24'58" West, 1,673.57 feet to a 1/2-inch iron pipe
249255 found being in the north right-of-way of said Calvary Road and being
250256 an angle point of the herein described tract;
251257 THENCE, North 77°03'14" West, 1,096.54 feet to a point for corner
252258 being in the north right-of-way of said Calvary Road, being the
253259 southeast corner of a called 4.9839 acre tract conveyed to Clyde and
254260 Sharon Scruggs by Warranty Deed recorded in Clerk's File
255261 No. 8507804, Montgomery County Official Public Records of Real
256262 Property, being in the centerline of a creek, and being the
257263 southwest corner of the herein described tract;
258264 THENCE, along the centerline of said creek the following
259265 seventy-three (73) courses and distances:
260266 1. North 16°00'53" East, 51.75 feet to a point for corner;
261267 2. North 76°46'26" East, 69.85 feet to a point for corner;
262268 3. North 78°52'59" East, 48.13 feet to a point for corner;
263269 4. North 51°38'11" East, 50.85 feet to a point for corner;
264270 5. North 11°33'41" East, 37.07 feet to a point for corner;
265271 6. North 52°12'40" East, 28.54 feet to a point for corner;
266272 7. North 51°50'02" West, 24.97 feet to a point for corner;
267273 8. North 88°11'32" East, 35.50 feet to a point for corner;
268274 9. North 29°32'26" East, 110.78 feet to a point for corner;
269275 10. North 75°15'58" East, 68.34 feet to a point for corner;
270276 11. South 51°48'30" East, 50.53 feet to a point for corner;
271277 12. North 79°13'23" East, 40.81 feet to a point for corner;
272278 13. North 04°40'00" West, 136.22 feet to a point for corner;
273279 14. North 32°07'37" East, 60.12 feet to a point for corner;
274280 15. North 46°36'30" East, 57.30 feet to a point for corner;
275281 16. North 21°11'07" West, 54.47 feet to a point for corner;
276282 17. North 02°52'33" East, 76.04 feet to a point for corner;
277283 18. North 30°36'40" East, 45.00 feet to a point for corner;
278284 19. South 46°17'54" East, 52.83 feet to a point for corner;
279285 20. North 67°43'12" East, 31.12 feet to a point for corner;
280286 21. North 27°10'54" East, 22.94 feet to a point for corner;
281287 22. North 76°09'31" East, 96.44 feet to a point for corner;
282288 23. North 18°14'48" East, 65.58 feet to a point for corner;
283289 24. North 75°18'54" East, 80.12 feet to a point for corner;
284290 25. North 17°19'16" East, 64.17 feet to a point for corner;
285291 26. North 31°12'56" East, 40.21 feet to a point for corner;
286292 27. South 56°34'55" East, 74.19 feet to a point for corner;
287293 28. North 58°03'36" East, 43.72 feet to a point for corner;
288294 29. North 15°16'42" East, 34.96 feet to a point for corner;
289295 30. North 26°46'27" West, 101.00 feet to a point for corner;
290296 31. North 77°07'08" West, 45.13 feet to a point for corner;
291297 32. South 23°52'02" West, 33.69 feet to a point for corner;
292298 33. North 34°55'39" West, 30.58 feet to a point for corner;
293299 34. North 04°43'54" East, 139.56 feet to a point for corner;
294300 35. North 49°52'03" East, 80.12 feet to a point for corner;
295301 36. North 36°59'46" West, 32.71 feet to a point for corner;
296302 37. South 83°09'49" West, 89.05 feet to a point for corner;
297303 38. North 01°08'58" West, 51.10 feet to a point for corner;
298304 39. South 89°33'42" East, 70.61 feet to a point for corner;
299305 40. North 18°08'04" West, 82.98 feet to a point for corner;
300306 41. North 65°47'07" East, 72.32 feet to a point for corner;
301307 42. North 21°45'28" West, 108.76 feet to a point for corner;
302308 43. North 46°54'26" West, 27.86 feet to a point for corner;
303309 44. South 36°24'46" West, 124.21 feet to a point for corner;
304310 45. South 68°31'55" West, 89.46 feet to a point for corner;
305311 46. North 30°02'30" West, 27.92 feet to a point for corner;
306312 47. North 28°45'23" East, 259.17 feet to a point for corner;
307313 48. North 87°35'41" West, 34.55 feet to a point for corner;
308314 49. North 06°02'38" West, 64.31 feet to a point for corner;
309315 50. North 25°43'30" East, 160.41 feet to a point for corner;
310316 51. North 59°50'48" East, 35.64 feet to a point for corner;
311317 52. South 66°51'12" East, 139.24 feet to a point for corner;
312318 53. North 08°39'49" West, 81.92 feet to a point for corner;
313319 54. North 37°22'23" East, 22.36 feet to a point for corner;
314320 55. North 84°25'14" East, 89.59 feet to a point for corner;
315321 56. North 62°53'36" East, 76.60 feet to a point for corner;
316322 57. North 38°15'50" East, 91.56 feet to a point for corner;
317323 58. North 18°02'10" West, 49.23 feet to a point for corner;
318324 59. South 79°22'47" West, 69.62 feet to a point for corner;
319325 60. North 33°01'08" West, 74.41 feet to a point for corner;
320326 61. North 08°50'51" East, 48.23 feet to a point for corner;
321327 62. North 51°01'41" East, 112.70 feet to a point for corner;
322328 63. North 11°32'20" West, 26.25 feet to a point for corner;
323329 64. North 75°58'54" West, 40.13 feet to a point for corner;
324330 65. North 17°13'17" West, 48.25 feet to a point for corner;
325331 66. North 35°42'48" East, 50.95 feet to a point for corner;
326332 67. South 84°04'38" East, 35.18 feet to a point for corner;
327333 68. South 05°17'32" East, 59.68 feet to a point for corner;
328334 69. North 47°45'11" East, 63.33 feet to a point for corner;
329335 70. North 09°16'24" West, 123.17 feet to a point for corner;
330336 71. South 86°42'10" West, 77.72 feet to a point for corner;
331337 72. North 52°41'46" West, 47.11 feet to a point for corner;
332338 73. North 36°16'41" East, 233.03 feet to a point for corner being
333339 the northeast corner of called Lot 1 conveyed to Adrian and Daniela
334340 Gianina Rotaru by Warranty Deed with Vendor's Lien recorded in
335341 Clerk's File No. 2017053987, Montgomery County Official Public
336342 Records of Real Property, being the southeast corner of called
337343 Tract 3 (Lot 35) conveyed to Bruce W. Tubbs and Maria Caughman by
338344 Warranty Deed with Vendor's Lien recorded in Clerk's File
339345 No. 2016082401, Montgomery County Official Public Records of Real
340346 Property, being the most westerly corner of a called 443.135 acre
341347 tract conveyed to CC Shepard Hill 443, L.P. by Special Warranty Deed
342348 with Vendor's Lien recorded in Clerk's File No. 2018025658,
343349 Montgomery County Official Public Records of Real Property, and
344350 being the northwest corner of the herein described tract;
345351 THENCE, South 77°18'54" East, at 14.59 feet passing a 1/2-inch iron
346352 rod found being in the south line of said called 443.135 acre tract,
347353 continuing for a total distance of 2,410.63 feet to a 5/8-inch iron
348354 rod with cap found being an interior angle point of said called
349355 443.135 acre tract and being the northeast corner of said 169.059
350356 acre tract and the herein described tract;
351357 THENCE, South 03°58'29" West, 1,540.88 feet to a wooden fence post
352358 found being the most southerly corner of said called 443.135 acre
353359 tract, being the northwest corner of a called 131.172 acre tract
354360 conveyed to Barton J. and Melissa Halbaedier by Warranty Deed with
355361 Vendor's Lien recorded in Clerk's File No. 2004022169, Montgomery
356362 County Official Public Records of Real Property, and being an angle
357363 point of the herein described tract;
358364 THENCE, South 04°00'54" West, 730.23 feet to a wooden fence post
359365 found being the southwest corner of said called 131.172 acre tract,
360366 being in the north line of said called 10.00 acre tract and being an
361367 angle point of the herein described tract;
362368 THENCE, North 77°07'49" West, 578.00 feet to a 1/2-inch iron pipe
363369 found being the northwest corner of said called 10.00 acre tract and
364370 being an interior angle point of the herein described tract;
365371 THENCE, South 11°31'45" West, 563.75 feet to the POINT OF BEGINNING,
366372 CONTAINING 170.1 acres (7,411,386 square feet) of land in
367373 Montgomery County, Texas filed in the office of Manhard Consulting,
368374 Ltd. in The Woodlands, Texas.
369375 SECTION 3. (a) The legal notice of the intention to
370376 introduce this Act, setting forth the general substance of this
371377 Act, has been published as provided by law, and the notice and a
372378 copy of this Act have been furnished to all persons, agencies,
373379 officials, or entities to which they are required to be furnished
374380 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
375381 Government Code.
376382 (b) The governor, one of the required recipients, has
377383 submitted the notice and Act to the Texas Commission on
378384 Environmental Quality.
379385 (c) The Texas Commission on Environmental Quality has filed
380386 its recommendations relating to this Act with the governor, the
381387 lieutenant governor, and the speaker of the house of
382388 representatives within the required time.
383389 (d) All requirements of the constitution and laws of this
384390 state and the rules and procedures of the legislature with respect
385391 to the notice, introduction, and passage of this Act are fulfilled
386392 and accomplished.
387393 SECTION 4. (a) Section 8077.0307, Special District Local
388394 Laws Code, as added by Section 1 of this Act, takes effect only if
389395 this Act receives a two-thirds vote of all the members elected to
390396 each house.
391397 (b) If this Act does not receive a two-thirds vote of all the
392398 members elected to each house, Subchapter C, Chapter 8077, Special
393399 District Local Laws Code, as added by Section 1 of this Act, is
394400 amended by adding Section 8077.0307 to read as follows:
395401 Sec. 8077.0307. NO EMINENT DOMAIN POWER. The district may
396402 not exercise the power of eminent domain.
397403 (c) This section is not intended to be an expression of a
398404 legislative interpretation of the requirements of Section 17(c),
399405 Article I, Texas Constitution.
400406 SECTION 5. This Act takes effect immediately if it receives
401407 a vote of two-thirds of all the members elected to each house, as
402408 provided by Section 39, Article III, Texas Constitution. If this
403409 Act does not receive the vote necessary for immediate effect, this
404410 Act takes effect September 1, 2019.
405- ______________________________ ______________________________
406- President of the Senate Speaker of the House
407- I certify that H.B. No. 2380 was passed by the House on April
408- 26, 2019, by the following vote: Yeas 128, Nays 11, 2 present, not
409- voting.
410- ______________________________
411- Chief Clerk of the House
412- I certify that H.B. No. 2380 was passed by the Senate on May
413- 15, 2019, by the following vote: Yeas 30, Nays 1.
414- ______________________________
415- Secretary of the Senate
416- APPROVED: _____________________
417- Date
418- _____________________
419- Governor
411+ * * * * *