Texas 2019 - 86th Regular

Texas Senate Bill SB1126 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R10384 GRM-F
2	2	By: Nichols S.B. No. 1126
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Montgomery County Municipal Utility
8	8	District No. 173; granting a limited power of eminent domain;
9	9	providing authority to issue bonds; providing authority to impose
10	10	assessments, fees, and taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 6, Special District Local Laws
13	13	Code, is amended by adding Chapter 8077 to read as follows:
14	14	CHAPTER 8077. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 173
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 8077.0101. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the district's board of directors.
18	18	(2) "Commission" means the Texas Commission on
19	19	Environmental Quality.
20	20	(3) "Director" means a board member.
21	21	(4) "District" means the Montgomery County Municipal
22	22	Utility District No. 173.
23	23	Sec. 8077.0102. NATURE OF DISTRICT. The district is a
24	24	municipal utility district created under Section 59, Article XVI,
25	25	Texas Constitution.
26	26	Sec. 8077.0103. CONFIRMATION AND DIRECTOR ELECTION
27	27	REQUIRED. The temporary directors shall hold an election to
28	28	confirm the creation of the district and to elect five permanent
29	29	directors as provided by Section 49.102, Water Code.
30	30	Sec. 8077.0104. CONSENT OF MUNICIPALITY REQUIRED. The
31	31	temporary directors may not hold an election under Section
32	32	8077.0103 until each municipality in whose corporate limits or
33	33	extraterritorial jurisdiction the district is located has
34	34	consented by ordinance or resolution to the creation of the
35	35	district and to the inclusion of land in the district.
36	36	Sec. 8077.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
37	37	(a) The district is created to serve a public purpose and benefit.
38	38	(b) The district is created to accomplish the purposes of:
39	39	(1) a municipal utility district as provided by
40	40	general law and Section 59, Article XVI, Texas Constitution; and
41	41	(2) Section 52, Article III, Texas Constitution, that
42	42	relate to the construction, acquisition, improvement, operation,
43	43	or maintenance of macadamized, graveled, or paved roads, or
44	44	improvements, including storm drainage, in aid of those roads.
45	45	Sec. 8077.0106. INITIAL DISTRICT TERRITORY. (a) The
46	46	district is initially composed of the territory described by
47	47	Section 2 of the Act enacting this chapter.
48	48	(b) The boundaries and field notes contained in Section 2 of
49	49	the Act enacting this chapter form a closure. A mistake made in the
50	50	field notes or in copying the field notes in the legislative process
51	51	does not affect the district's:
52	52	(1) organization, existence, or validity;
53	53	(2) right to issue any type of bond for the purposes
54	54	for which the district is created or to pay the principal of and
55	55	interest on a bond;
56	56	(3) right to impose a tax; or
57	57	(4) legality or operation.
58	58	SUBCHAPTER B. BOARD OF DIRECTORS
59	59	Sec. 8077.0201. GOVERNING BODY; TERMS. (a) The district is
60	60	governed by a board of five elected directors.
61	61	(b) Except as provided by Section 8077.0202, directors
62	62	serve staggered four-year terms.
63	63	Sec. 8077.0202. TEMPORARY DIRECTORS. (a) The temporary
64	64	board consists of:
65	65	(1) Will Holstein;
66	66	(2) Adam Flaaten;
67	67	(3) Juan Galvan;
68	68	(4) Lisa Nickel; and
69	69	(5) Justin Hausman.
70	70	(b) Temporary directors serve until the earlier of:
71	71	(1) the date permanent directors are elected under
72	72	Section 8077.0103; or
73	73	(2) the fourth anniversary of the effective date of
74	74	the Act enacting this chapter.
75	75	(c) If permanent directors have not been elected under
76	76	Section 8077.0103 and the terms of the temporary directors have
77	77	expired, successor temporary directors shall be appointed or
78	78	reappointed as provided by Subsection (d) to serve terms that
79	79	expire on the earlier of:
80	80	(1) the date permanent directors are elected under
81	81	Section 8077.0103; or
82	82	(2) the fourth anniversary of the date of the
83	83	appointment or reappointment.
84	84	(d) If Subsection (c) applies, the owner or owners of a
85	85	majority of the assessed value of the real property in the district
86	86	may submit a petition to the commission requesting that the
87	87	commission appoint as successor temporary directors the five
88	88	persons named in the petition. The commission shall appoint as
89	89	successor temporary directors the five persons named in the
90	90	petition.
91	91	SUBCHAPTER C. POWERS AND DUTIES
92	92	Sec. 8077.0301. GENERAL POWERS AND DUTIES. The district
93	93	has the powers and duties necessary to accomplish the purposes for
94	94	which the district is created.
95	95	Sec. 8077.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
96	96	DUTIES. The district has the powers and duties provided by the
97	97	general law of this state, including Chapters 49 and 54, Water Code,
98	98	applicable to municipal utility districts created under Section 59,
99	99	Article XVI, Texas Constitution.
100	100	Sec. 8077.0303. AUTHORITY FOR ROAD PROJECTS. Under Section
101	101	52, Article III, Texas Constitution, the district may design,
102	102	acquire, construct, finance, issue bonds for, improve, operate,
103	103	maintain, and convey to this state, a county, or a municipality for
104	104	operation and maintenance macadamized, graveled, or paved roads, or
105	105	improvements, including storm drainage, in aid of those roads.
106	106	Sec. 8077.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
107	107	road project must meet all applicable construction standards,
108	108	zoning and subdivision requirements, and regulations of each
109	109	municipality in whose corporate limits or extraterritorial
110	110	jurisdiction the road project is located.
111	111	(b) If a road project is not located in the corporate limits
112	112	or extraterritorial jurisdiction of a municipality, the road
113	113	project must meet all applicable construction standards,
114	114	subdivision requirements, and regulations of each county in which
115	115	the road project is located.
116	116	(c) If the state will maintain and operate the road, the
117	117	Texas Transportation Commission must approve the plans and
118	118	specifications of the road project.
119	119	Sec. 8077.0305. COMPLIANCE WITH MUNICIPAL CONSENT
120	120	ORDINANCE OR RESOLUTION. The district shall comply with all
121	121	applicable requirements of any ordinance or resolution that is
122	122	adopted under Section 54.016 or 54.0165, Water Code, and that
123	123	consents to the creation of the district or to the inclusion of land
124	124	in the district.
125	125	Sec. 8077.0306. DIVISION OF DISTRICT. (a) The district may
126	126	be divided into two or more new districts only if the district:
127	127	(1) has no outstanding bonded debt; and
128	128	(2) is not imposing ad valorem taxes.
129	129	(b) This chapter applies to any new district created by the
130	130	division of the district, and a new district has all the powers and
131	131	duties of the district.
132	132	(c) Any new district created by the division of the district
133	133	may, at the time the new district is created, contain only:
134	134	(1) land within the area described by Section 2 of the
135	135	Act enacting this chapter; or
136	136	(2) any land adjacent to the area described by Section
137	137	2 of the Act enacting this chapter if that adjacent land is:
138	138	(A) not within the extraterritorial jurisdiction
139	139	of a city; or
140	140	(B) within the extraterritorial jurisdiction of
141	141	a city and that adjacent land has been approved for inclusion in the
142	142	district under the consent ordinance or resolution adopted by a
143	143	city under Section 8077.0104.
144	144	(d) The board, on its own motion or on receipt of a petition
145	145	signed by the owner or owners of a majority of the assessed value of
146	146	the real property in the district, may adopt an order dividing the
147	147	district.
148	148	(e) The board may adopt an order dividing the district
149	149	before or after the date the board holds an election under Section
150	150	8077.0103 to confirm the district's creation.
151	151	(f) An order dividing the district must:
152	152	(1) name each new district;
153	153	(2) include the metes and bounds description of the
154	154	territory of each new district;
155	155	(3) appoint temporary directors for each new district;
156	156	and
157	157	(4) provide for the division of assets and liabilities
158	158	between or among the new districts.
159	159	(g) On or before the 30th day after the date of adoption of
160	160	an order dividing the district, the district shall file the order
161	161	with the Texas Commission on Environmental Quality and record the
162	162	order in the real property records of each county in which the
163	163	district is located.
164	164	(h) Any new district created by the division of the district
165	165	shall hold a confirmation and directors' election as required by
166	166	Section 8077.0103.
167	167	(i) Municipal consent by a city is not required for the
168	168	creation of any new district created under this section.
169	169	(j) Any new district created by the division of the district
170	170	must hold an election as required by this chapter to obtain voter
171	171	approval before the district may impose a maintenance tax or issue
172	172	bonds payable wholly or partly from ad valorem taxes.
173	173	(k) If the voters of a new district do not confirm the
174	174	creation of the new district, the assets, obligations, territory,
175	175	and governance of the new district revert to that of the original
176	176	district.
177	177	Sec. 8077.0307. LIMITATION ON USE OF EMINENT DOMAIN. The
178	178	district may not exercise the power of eminent domain outside the
179	179	district boundaries to acquire a site or easement for:
180	180	(1) a recreational facility, as defined by Section
181	181	49.462, Water Code; or
182	182	(2) a road project authorized by Section 8077.0303.
183	183	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
184	184	Sec. 8077.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
185	185	The district may issue, without an election, bonds and other
186	186	obligations secured by:
187	187	(1) revenue other than ad valorem taxes; or
188	188	(2) contract payments described by Section 8077.0403.
189	189	(b) The district must hold an election in the manner
190	190	provided by Chapters 49 and 54, Water Code, to obtain voter approval
191	191	before the district may impose an ad valorem tax or issue bonds
192	192	payable from ad valorem taxes.
193	193	(c) The district may not issue bonds payable from ad valorem
194	194	taxes to finance a road project unless the issuance is approved by a
195	195	vote of a two-thirds majority of the district voters voting at an
196	196	election held for that purpose.
197	197	Sec. 8077.0402. OPERATION AND MAINTENANCE TAX. (a) If
198	198	authorized at an election held under Section 8077.0401, the
199	199	district may impose an operation and maintenance tax on taxable
200	200	property in the district in accordance with Section 49.107, Water
201	201	Code.
202	202	(b) The board shall determine the tax rate. The rate may not
203	203	exceed the rate approved at the election.
204	204	Sec. 8077.0403. CONTRACT TAXES. (a) In accordance with
205	205	Section 49.108, Water Code, the district may impose a tax other than
206	206	an operation and maintenance tax and use the revenue derived from
207	207	the tax to make payments under a contract after the provisions of
208	208	the contract have been approved by a majority of the district voters
209	209	voting at an election held for that purpose.
210	210	(b) A contract approved by the district voters may contain a
211	211	provision stating that the contract may be modified or amended by
212	212	the board without further voter approval.
213	213	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
214	214	Sec. 8077.0501. AUTHORITY TO ISSUE BONDS AND OTHER
215	215	OBLIGATIONS. The district may issue bonds or other obligations
216	216	payable wholly or partly from ad valorem taxes, impact fees,
217	217	revenue, contract payments, grants, or other district money, or any
218	218	combination of those sources, to pay for any authorized district
219	219	purpose.
220	220	Sec. 8077.0502. TAXES FOR BONDS. At the time the district
221	221	issues bonds payable wholly or partly from ad valorem taxes, the
222	222	board shall provide for the annual imposition of a continuing
223	223	direct ad valorem tax, without limit as to rate or amount, while all
224	224	or part of the bonds are outstanding as required and in the manner
225	225	provided by Sections 54.601 and 54.602, Water Code.
226	226	Sec. 8077.0503. BONDS FOR ROAD PROJECTS. At the time of
227	227	issuance, the total principal amount of bonds or other obligations
228	228	issued or incurred to finance road projects and payable from ad
229	229	valorem taxes may not exceed one-fourth of the assessed value of the
230	230	real property in the district.
231	231	SECTION 2. The Montgomery County Municipal Utility District
232	232	No. 173 initially includes all the territory contained in the
233	233	following area:
234	234	A METES & BOUNDS description of a certain 170.1 acre (7,411,386
235	235	square feet) tract of land situated in the Joseph Lindley Survey,
236	236	Abstract No. 25 in Montgomery County, Texas, being all of a called
237	237	169.059 acre tract conveyed to Ranch Hill Texas, LLC by Special
238	238	Warranty Deed recorded in Clerk's File No. 2018049384, Montgomery
239	239	County Official Public Records of Real Property; said 170.1 acre
240	240	(7,411,386 square feet) tract of land being more particularly
241	241	described as follows with all bearings being based on the Texas
242	242	Coordinate System, Central Zone, NAD 83:
243	243	BEGINNING at a 1/2-inch iron rod found being the southwest corner of
244	244	a called 10.00 acre tract conveyed to Robert W. Bucher by Warranty
245	245	Deed recorded in Clerk's File No. 2002016103, Montgomery County
246	246	Official Public Records of Real Property, being in the north
247	247	right-of-way of Calvary Road (based on a width of 80 feet), and
248	248	being the southeast corner of said 169.059 acre tract and the herein
249	249	described tract;
250	250	THENCE, North 77°24'58" West, 1,673.57 feet to a 1/2-inch iron pipe
251	251	found being in the north right-of-way of said Calvary Road and being
252	252	an angle point of the herein described tract;
253	253	THENCE, North 77°03'14" West, 1,096.54 feet to a point for corner
254	254	being in the north right-of-way of said Calvary Road, being the
255	255	southeast corner of a called 4.9839 acre tract conveyed to Clyde and
256	256	Sharon Scruggs by Warranty Deed recorded in Clerk's File
257	257	No. 8507804, Montgomery County Official Public Records of Real
258	258	Property, being in the centerline of a creek, and being the
259	259	southwest corner of the herein described tract;
260	260	THENCE, along the centerline of said creek the following
261	261	seventy-three (73) courses and distances:
262	262	1. North 16°00'53" East, 51.75 feet to a point for corner;
263	263	2. North 76°46'26" East, 69.85 feet to a point for corner;
264	264	3. North 78°52'59" East, 48.13 feet to a point for corner;
265	265	4. North 51°38'11" East, 50.85 feet to a point for corner;
266	266	5. North 11°33'41" East, 37.07 feet to a point for corner;
267	267	6. North 52°12'40" East, 28.54 feet to a point for corner;
268	268	7. North 51°50'02" West, 24.97 feet to a point for corner;
269	269	8. North 88°11'32" East, 35.50 feet to a point for corner;
270	270	9. North 29°32'26" East, 110.78 feet to a point for corner;
271	271	10. North 75°15'58" East, 68.34 feet to a point for corner;
272	272	11. South 51°48'30" East, 50.53 feet to a point for corner;
273	273	12. North 79°13'23" East, 40.81 feet to a point for corner;
274	274	13. North 04°40'00" West, 136.22 feet to a point for corner;
275	275	14. North 32°07'37" East, 60.12 feet to a point for corner;
276	276	15. North 46°36'30" East, 57.30 feet to a point for corner;
277	277	16. North 21°11'07" West, 54.47 feet to a point for corner;
278	278	17. North 02°52'33" East, 76.04 feet to a point for corner;
279	279	18. North 30°36'40" East, 45.00 feet to a point for corner;
280	280	19. South 46°17'54" East, 52.83 feet to a point for corner;
281	281	20. North 67°43'12" East, 31.12 feet to a point for corner;
282	282	21. North 27°10'54" East, 22.94 feet to a point for corner;
283	283	22. North 76°09'31" East, 96.44 feet to a point for corner;
284	284	23. North 18°14'48" East, 65.58 feet to a point for corner;
285	285	24. North 75°18'54" East, 80.12 feet to a point for corner;
286	286	25. North 17°19'16" East, 64.17 feet to a point for corner;
287	287	26. North 31°12'56" East, 40.21 feet to a point for corner;
288	288	27. South 56°34'55" East, 74.19 feet to a point for corner;
289	289	28. North 58°03'36" East, 43.72 feet to a point for corner;
290	290	29. North 15°16'42" East, 34.96 feet to a point for corner;
291	291	30. North 26°46'27" West, 101.00 feet to a point for corner;
292	292	31. North 77°07'08" West, 45.13 feet to a point for corner;
293	293	32. South 23°52'02" West, 33.69 feet to a point for corner;
294	294	33. North 34°55'39" West, 30.58 feet to a point for corner;
295	295	34. North 04°43'54" East, 139.56 feet to a point for corner;
296	296	35. North 49°52'03" East, 80.12 feet to a point for corner;
297	297	36. North 36°59'46" West, 32.71 feet to a point for corner;
298	298	37. South 83°09'49" West, 89.05 feet to a point for corner;
299	299	38. North 01°08'58" West, 51.10 feet to a point for corner;
300	300	39. South 89°33'42" East, 70.61 feet to a point for corner;
301	301	40. North 18°08'04" West, 82.98 feet to a point for corner;
302	302	41. North 65°47'07" East, 72.32 feet to a point for corner;
303	303	42. North 21°45'28" West, 108.76 feet to a point for corner;
304	304	43. North 46°54'26" West, 27.86 feet to a point for corner;
305	305	44. South 36°24'46" West, 124.21 feet to a point for corner;
306	306	45. South 68°31'55" West, 89.46 feet to a point for corner;
307	307	46. North 30°02'30" West, 27.92 feet to a point for corner;
308	308	47. North 28°45'23" East, 259.17 feet to a point for corner;
309	309	48. North 87°35'41" West, 34.55 feet to a point for corner;
310	310	49. North 06°02'38" West, 64.31 feet to a point for corner;
311	311	50. North 25°43'30" East, 160.41 feet to a point for corner;
312	312	51. North 59°50'48" East, 35.64 feet to a point for corner;
313	313	52. South 66°51'12" East, 139.24 feet to a point for corner;
314	314	53. North 08°39'49" West, 81.92 feet to a point for corner;
315	315	54. North 37°22'23" East, 22.36 feet to a point for corner;
316	316	55. North 84°25'14" East, 89.59 feet to a point for corner;
317	317	56. North 62°53'36" East, 76.60 feet to a point for corner;
318	318	57. North 38°15'50" East, 91.56 feet to a point for corner;
319	319	58. North 18°02'10" West, 49.23 feet to a point for corner;
320	320	59. South 79°22'47" West, 69.62 feet to a point for corner;
321	321	60. North 33°01'08" West, 74.41 feet to a point for corner;
322	322	61. North 08°50'51" East, 48.23 feet to a point for corner;
323	323	62. North 51°01'41" East, 112.70 feet to a point for corner;
324	324	63. North 11°32'20" West, 26.25 feet to a point for corner;
325	325	64. North 75°58'54" West, 40.13 feet to a point for corner;
326	326	65. North 17°13'17" West, 48.25 feet to a point for corner;
327	327	66. North 35°42'48" East, 50.95 feet to a point for corner;
328	328	67. South 84°04'38" East, 35.18 feet to a point for corner;
329	329	68. South 05°17'32" East, 59.68 feet to a point for corner;
330	330	69. North 47°45'11" East, 63.33 feet to a point for corner;
331	331	70. North 09°16'24" West, 123.17 feet to a point for corner;
332	332	71. South 86°42'10" West, 77.72 feet to a point for corner;
333	333	72. North 52°41'46" West, 47.11 feet to a point for corner;
334	334	73. North 36°16'41" East, 233.03 feet to a point for corner being
335	335	the northeast corner of called Lot 1 conveyed to Adrian and Daniela
336	336	Gianina Rotaru by Warranty Deed with Vendor's Lien recorded in
337	337	Clerk's File No. 2017053987, Montgomery County Official Public
338	338	Records of Real Property, being the southeast corner of called
339	339	Tract 3 (Lot 35) conveyed to Bruce W. Tubbs and Maria Caughman by
340	340	Warranty Deed with Vendor's Lien recorded in Clerk's File
341	341	No. 2016082401, Montgomery County Official Public Records of Real
342	342	Property, being the most westerly corner of a called 443.135 acre
343	343	tract conveyed to CC Shepard Hill 443, L.P. by Special Warranty Deed
344	344	with Vendor's Lien recorded in Clerk's File No. 2018025658,
345	345	Montgomery County Official Public Records of Real Property, and
346	346	being the northwest corner of the herein described tract;
347	347	THENCE, South 77°18'54" East, at 14.59 feet passing a 1/2-inch iron
348	348	rod found being in the south line of said called 443.135 acre tract,
349	349	continuing for a total distance of 2,410.63 feet to a 5/8-inch iron
350	350	rod with cap found being an interior angle point of said called
351	351	443.135 acre tract and being the northeast corner of said 169.059
352	352	acre tract and the herein described tract;
353	353	THENCE, South 03°58'29" West, 1,540.88 feet to a wooden fence post
354	354	found being the most southerly corner of said called 443.135 acre
355	355	tract, being the northwest corner of a called 131.172 acre tract
356	356	conveyed to Barton J. and Melissa Halbaedier by Warranty Deed with
357	357	Vendor's Lien recorded in Clerk's File No. 2004022169, Montgomery
358	358	County Official Public Records of Real Property, and being an angle
359	359	point of the herein described tract;
360	360	THENCE, South 04°00'54" West, 730.23 feet to a wooden fence post
361	361	found being the southwest corner of said called 131.172 acre tract,
362	362	being in the north line of said called 10.00 acre tract and being an
363	363	angle point of the herein described tract;
364	364	THENCE, North 77°07'49" West, 578.00 feet to a 1/2-inch iron pipe
365	365	found being the northwest corner of said called 10.00 acre tract and
366	366	being an interior angle point of the herein described tract;
367	367	THENCE, South 11°31'45" West, 563.75 feet to the POINT OF BEGINNING,
368	368	CONTAINING 170.1 acres (7,411,386 square feet) of land in
369	369	Montgomery County, Texas filed in the office of Manhard Consulting,
370	370	Ltd. in The Woodlands, Texas.
371	371	SECTION 3. (a) The legal notice of the intention to
372	372	introduce this Act, setting forth the general substance of this
373	373	Act, has been published as provided by law, and the notice and a
374	374	copy of this Act have been furnished to all persons, agencies,
375	375	officials, or entities to which they are required to be furnished
376	376	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
377	377	Government Code.
378	378	(b) The governor, one of the required recipients, has
379	379	submitted the notice and Act to the Texas Commission on
380	380	Environmental Quality.
381	381	(c) The Texas Commission on Environmental Quality has filed
382	382	its recommendations relating to this Act with the governor, the
383	383	lieutenant governor, and the speaker of the house of
384	384	representatives within the required time.
385	385	(d) All requirements of the constitution and laws of this
386	386	state and the rules and procedures of the legislature with respect
387	387	to the notice, introduction, and passage of this Act are fulfilled
388	388	and accomplished.
389	389	SECTION 4. (a) Section 8077.0307, Special District Local
390	390	Laws Code, as added by Section 1 of this Act, takes effect only if
391	391	this Act receives a two-thirds vote of all the members elected to
392	392	each house.
393	393	(b) If this Act does not receive a two-thirds vote of all the
394	394	members elected to each house, Subchapter C, Chapter 8077, Special
395	395	District Local Laws Code, as added by Section 1 of this Act, is
396	396	amended by adding Section 8077.0307 to read as follows:
397	397	Sec. 8077.0307. NO EMINENT DOMAIN POWER. The district may
398	398	not exercise the power of eminent domain.
399	399	(c) This section is not intended to be an expression of a
400	400	legislative interpretation of the requirements of Section 17(c),
401	401	Article I, Texas Constitution.
402	402	SECTION 5. This Act takes effect immediately if it receives
403	403	a vote of two-thirds of all the members elected to each house, as
404	404	provided by Section 39, Article III, Texas Constitution. If this
405	405	Act does not receive the vote necessary for immediate effect, this
406	406	Act takes effect September 1, 2019.