By: Creighton S.B. No. 2462
(In the Senate - Filed March 26, 2019; March 27, 2019, read
first time and referred to Committee on Intergovernmental
Relations; April 23, 2019, reported favorably by the following
vote: Yeas 6, Nays 0; April 23, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 161; 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 8089 to read as follows:
CHAPTER 8089. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 161
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8089.0101. 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 Montgomery County Municipal
Utility District No. 161.
Sec. 8089.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8089.0103. 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. 8089.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8089.0103 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. 8089.0105. 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. 8089.0106. 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. 8089.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 8089.0202, directors
serve staggered four-year terms.
Sec. 8089.0202. 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 8089.0103; 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 8089.0103 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 8089.0103; 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. 8089.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8089.0302. 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. 8089.0303. 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. 8089.0304. 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. 8089.0305. 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.
Sec. 8089.0306. DIVISION OF DISTRICT. (a) The district
may be divided into two or more new districts only if the district:
(1) has never issued any bonds; and
(2) is not imposing ad valorem taxes.
(b) This chapter applies to any new district created by the
division of the district, and a new district has all the powers and
duties of the district.
(c) A new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act enacting this
chapter.
(d) The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value of
the real property in the district, may adopt an order dividing the
district.
(e) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
8089.0103 to confirm the district's creation.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between the new districts.
(g) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the commission and record the order in the real property
records of each county in which the district is located.
(h) A new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 8089.0103.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(j) Any new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
(k) Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
8089.0104 acts as municipal consent to the creation of any new
district created by the division of the district and to the
inclusion of land in the new district.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8089.0401. 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 8089.0403.
(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. 8089.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8089.0401, 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. 8089.0403. 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. 8089.0501. 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. 8089.0502. 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. 8089.0503. 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 Montgomery County Municipal Utility District
No. 161 initially includes all the territory contained in the
following area:
A description of a 652 acre tract of land, located in the
Alfonzo Steel Survey, Abstract 477, the John Bricker Survey,
Abstract 98, the Gowan Harris Survey, Abstract 246, and the Lemuel
Smith Survey, Abstract 502, in Montgomery County, Texas; out of the
1835.060 acre tract of land referenced as Tract III, Parcel 2, and
out of the 191.470 acre tract of land referenced as Tract II, Parcel
1 and out of the 105.594 acre tract of land referenced as Tract 2,
Parcel 4 described in the deed recorded under Document Number
2018042236 of the Official Public Records of Montgomery County,
Texas and more particularly described as follows:
BEGINNING at the south corner of said John Bricker Survey,
common to the east corner of said Gowan Harris Survey and the south
corner of said Tract 2, Parcel 4;
THENCE North 30° 26' 13" West - 3138.61, along the west line of
said Tract 2, Parcel 4, partially along the southwest line of said
John Bricker Survey, common to the northeast line of said Gowan
Harris Survey, to the intersection of said common line and the north
right-of-way line of State Highway 242 (Lazy River Road), and the
south line of aforesaid Tract III, Parcel 2, and the south line of
aforesaid Tract 2, Parcel 1, common to the point of non-tangent
curve to the right;
THENCE along said north right-of-way line, and along said
south line of said Tract III, Parcel 2, along said curve to the
right, 60.70', with a radius of 2565.25', a central angle of 01° 21'
21", and a chord bearing and distance of North 73° 32' 31" West -
60.70', to the end of curve;
THENCE continuing along said north right-of-way line, common
to the south line of said Tract 3, Parcel 2, the following twenty
(20) courses and distances:
North 72° 50' 00" West - 1063.30';
North 69° 00' 59" West - 299.06';
North 72° 47' 05" West - 101.02';
North 78° 40' 07" West - 99.47';
North 72° 47' 17" West - 201.25';
North 71° 52' 08" West - 299.75';
North 72° 59' 03" West - 100.41';
North 75° 32' 57" West - 99.82';
North 73° 01' 36" West - 511.85';
North 72° 53' 37" West - 586.90';
North 78° 36' 15" West - 100.50';
North 72° 53' 37" West - 314.28' to a point on a curve to
the left;
262.81', along said curve to the left, with a radius of
2954.79', a central angle of 05° 05' 46", and a chord bearing
and distance of North 75° 26' 30" West - 262.72' to the end of
curve;
North 75° 22' 06" West - 525.80';
South 81° 54' 27" West - 733.46';
South 76° 44' 39" West - 418.29';
South 69° 22' 36" West - 409.05;'
South 66° 28' 20" West - 300.00';
South 63° 36' 35" West - 300.37';
South 66° 28' 20" West - 799.40', to the intersection of
aforesaid north right-of-way line and the west line of an
electric transmission corridor, in the south line of
aforesaid Tract 3, Parcel 2;
THENCE North 52° 44' 18" West - 2544.15', along said electric
transmission corridor, to a point for corner;
THENCE North 43° 44' 05" West - 4153.21', continuing along
said electric transmission corridor, to the intersection of said
west corridor line and the northwest line of aforesaid Tract III,
Parcel 2;
THENCE North 59° 01' 30" East - 3444.33', along said northwest
line, to the west corner of the 37.61 acre tract described as
"First" tract in the partition deed recorded under Volume 583, Page
609, of the Deed Records of Montgomery County, Texas;
THENCE South 30° 15' 23" East - 1567.16', continuing along the
northeast line of aforesaid Tract III, Parcel 2, along the
southwest line of said "First" tract, and the southwest line of the
37.61 acre tract described as "Second" tract in the partition deed
recorded under Volume 583, Page 609, of the Deed Records of
Montgomery County, Texas, to the south corner of said "Second"
tract;
THENCE North 58° 50' 47" East - 1372.93', continuing along the
northwest line of said Tract III, Parcel 2, along the southeast line
of said "Second" tract, to a point for corner in said southeast line
of said "Second" tract;
THENCE South 30° 26' 27" East - 2772.87', to a point for
corner;
THENCE South 59° 25' 43" West - 1902.10' to a point for corner;
THENCE South 15° 49' 15" East - 1921.98' to a point which is
located three hundred feet north of the north right-of-way of
aforesaid State Highway 242;
THENCE along a line, three-hundred feet (300') north of
parallel with said north right-of-way line, the following
twenty-two (22) courses and distances:
North 66° 28' 20" East - 320.29';
North 63° 36' 35" East - 300.37';
North 66° 28' 20" East - 315.10';
North 69° 22' 36" East - 435.97';
North 76° 44' 39" East - 451.13';
North 81° 54' 27" East - 807.27';
South 75° 22' 06" East - 579.39' to the beginning of a
curve to the right;
282.46', along said curve to the right, with a radius of
3254.79', a central angle of 04° 58' 20", and a chord bearing
and distance of South 75° 22' 47" East - 282.37' to the end of
curve;
South 72° 53' 37" East - 299.32';
South 78° 36' 15" East - 100.50';
South 72° 53' 37" East - 601.51';
South 73° 01' 36" East - 504.90';
South 75° 32' 57" East - 99.73';
South 72° 59' 03" East - 110.05';
South 71° 52' 08" East - 300.26';
South 72° 47' 17" East - 183.43';
South 78° 40' 07" East - 99.48';
South 72° 47' 05" East - 126.31';
South 69° 00' 59" East - 298.93';
South 72° 50' 13" East - 1053.14' to the beginning of a
tangent curve to the left;
1655.03', along said curve to the left, with a radius of
2565.25', a central angle of 36° 57' 57", and a chord bearing
and distance of North 88° 37' 40" East - 1626.48' to the end of
curve;
North 70° 12' 35" East - 881.55';
THENCE North 67° 55' 52" East - 25.80', to the intersection of
said three hundred foot offset and the west right-of-way line of FM
1314 (Conroe Porter Road), and the east line of aforesaid Tract 2,
Parcel 1;
THENCE North 11° 00' 27" West - 587.98', continuing along said
west right-of-way line of FM 1314 (Conroe Porter Road), and the east
line of aforesaid Tract 2, Parcel 1, to a point for corner;
THENCE North 12° 31' 04" West - 2420.93', continuing along
said common line, and the east line of aforesaid Tract III, Parcel 2
to a point for corner;
THENCE North 12° 33' 22" West - 34.59', continuing along
aforesaid west right-of-way line of FM 1314 (Conroe Porter Road)
and the east line of aforesaid Tract III, Parcel 2, to the beginning
of a tangent curve to the left;
THENCE, 1150.34', continuing along said common line, along
said curve to the left, having a radius of 1859.86', a central angle
of 35° 26' 17", and a chord bearing and distance of North 30° 18' 14"
West - 1132.09' to the end of curve;
THENCE North 48° 01' 22" West - 2965.58', continuing along
said common line, to the intersection of said common line and the
northwest line of aforesaid Alfonzo Steel Survey;
THENCE North 58° 58' 24" East - 105.84', along the northwest
line of said Alfonzo Steel Survey, to the intersection of said
northwest line and the east right-of-way line of aforesaid FM 1314
(Conroe Porter Road), the northwest corner of the 273.466 acre
tract of land referenced as Tract III, Parcel 1 described in the
deed recorded under Document Number 2018042236 of the Official
Public Records of Montgomery County, Texas;
THENCE South 48° 01' 22" East - 2935.99', continuing along
said east right-of-way line, and the west line of Tract III, Parcel
1, to the beginning of a curve to the right;
THENCE, 1212.26', continuing along said common line, along
said curve to the right, with a radius of 1959.86', a central angle
of 35° 26' 24", and a chord bearing and distance of South 30° 16' 34"
East - 1193.03' to the end of curve;
THENCE South 12° 33' 22" East - 1.21, continuing along said
common line, to a point for corner;
THENCE South 12° 01' 58" East - 2102.94', continuing along
said east right-of-way line, and west line of the Tract III, Parcel
1 and the west line of a 195.961 acre tract of land referenced as
Tract 2, Parcel 2 described in the deed recorded under Document
Number 2018042236 of the Official Public Records of Montgomery
County, Texas; to a point for corner;
THENCE South 13° 30' 38" East - 995.85', continuing along said
east right-of-way line, and said west line of Tract 2, Parcel 2, to
a point for corner;
THENCE South 23° 14' 55" East - 200.33', continuing along said
common line, to the intersection of said common line and the north
right-of-way line of State Highway 242;
THENCE South 16° 50' 19" East - 538.64', continuing along
aforesaid east right-of-way line, to a point for corner at the
intersection of said east right-of-way line and the south
right-of-way line of said State Highway 242, the northwest corner
of a 90.860 acre tract of land referenced as Tract 2, Parcel 3
described in the deed recorded under Document Number 2018042236 of
the Official Public Records of Montgomery County, Texas;
THENCE South 19° 50' 32" East - 241.38', continuing along said
east right-of-way line, and the west line of said Tract 2, Parcel 3,
to a point for corner;
THENCE South 22° 10' 36" East - 597.39', continuing along said
common line, to a point for corner;
THENCE South 24° 51' 16" East - 778.41', continuing along said
common line, to the intersection of said common line and the
southeast line of aforesaid John Bricker Survey;
THENCE South 60° 50' 57" West - 89.83', along said southeast
line of the John Bricker Survey, to the southeast corner of
aforesaid Tract 2, Parcel 4;
THENCE South 59° 09' 24" West - 2139.18', along the southeast
line of said Tract 2, Parcel 4 and said southeast line of the John
Bricker Survey, to the POINT OF BEGINNING, and containing 652
acres, more or less.
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
8089, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8089.0307 to read as follows:
Sec. 8089.0307. 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 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, 2019.
* * * * *