By: Creighton S.B. No. 2464
(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. 163; 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 8091 to read as follows:
CHAPTER 8091. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 163
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8091.0101. 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. 163.
Sec. 8091.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8091.0103. 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. 8091.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8091.0103 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. 8091.0105. 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. 8091.0106. 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. 8091.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 8091.0202, directors
serve staggered four-year terms.
Sec. 8091.0202. 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 8091.0103; 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 8091.0103 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 8091.0103; 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. 8091.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8091.0302. 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. 8091.0303. 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. 8091.0304. 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. 8091.0305. 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. 8091.0306. 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
8091.0103 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 8091.0103.
(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
8091.0104 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. 8091.0401. 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 8091.0403.
(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. 8091.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8091.0401, 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. 8091.0403. 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. 8091.0501. 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. 8091.0502. 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. 8091.0503. 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. 163 initially includes all the territory contained in the
following area:
A description of a 1229 acre tract of land, located in the
Alfonzo Steel Survey, Abstract 477, the T. & N.O. Railroad Company,
Section 4 Survey, Abstract 741, and the John Bricker Survey,
Abstract 98, in Montgomery County, Texas; out of the 273.466 acre
tract of land referenced as Tract III, Parcel 1, out of the 195. 961
acre tract of land referenced as Tract 2, Parcel 2, out the 90.860
acre tract referenced as Tract 2, Parcel 3, and out of that 648.855
acre tract describes as Tract I as 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 northeast corner of said Tract I, and the
northeast corner of T. & N.O. Railroad Company, Section 4 Survey;
THENCE South 00° 06' 00" West - 4845.80', along the east line
of said Tract I, and the east line of said T. & N.O. Railroad
Company, Section 4 Survey, to the southeast corner of said Tract I,
and the southeast corner of said T. & N.O. Railroad Company, Section
4 Survey;
THENCE North 89° 57' 02" West - 5148.33', along the south line
of said tract I and the south line of said T. & N.O. Railroad
Company, Section 4 Survey, to the southwest corner of said Tract I,
and the southwest corner of said T. & N.O. RR. CO. Section 4 Survey,
in the east line of aforesaid Tract 2, Parcel 2, and the east line of
aforesaid John Bricker Survey;
THENCE South 30° 09' 50" East - 826.43', along the east line of
aforesaid Tract 2, Parcel 2, and along the east line of said John
Bricker Survey, to a southeast corner of said Tract 2, Parcel 2, and
a southeast corner of the John Bricker Survey, lying in the north
right-of-way line of State Highway 242;
THENCE South 30° 34' 35" East - 220.69', continuing along said
northeast line of said John Bricker Survey to a point for corner in
the south right-of-way line of said State Highway 242, in the north
line of said Tract 2, Parcel 3;
THENCE South 30° 15' 03" East - 688.49', along the northeast
line of said Tract 2, Parcel 3, and along the northeast line of said
John Bricker Survey, to the east corner of said Tract 2, Parcel 3,
and the southeast corner of said John Bricker Survey;
THENCE South 59° 13' 35" West - 3060.96', along the southeast
line of said Tract 2, Parcel 3 and the southeast line of said John
Bricker Survey, to the intersection of said southeast lines, and
the east right-of-way line of FM 1314 (Conroe Porter Road), being
the south corner of said Tract 2, Parcel 3;
THENCE North 24° 51' 16" West - 778.41', along said east
right-of-way line, and the west line of Tract 2, Parcel 3 to a point
for corner;
THENCE, North 22° 10' 36" West - 597.39', continuing along
said common line, to a point for corner;
THENCE, North 19° 50' 32" West - 241.38', continuing along
said common line, to at the south end of the southeasterly cutback
corner, and the northwest corner of aforesaid Tract 2, Parcel 3, at
the intersection of the aforesaid east right of way line of FM 1314
(Conroe Porter Road) and the south line of State Highway 242;
THENCE, North 16° 50' 19" West - 538.64', continuing along
said east right-of-way line, to the north end of the northeasterly
cutback corner of the said intersection, and the south corner of
aforesaid Tract 2, Parcel 2, at the intersection of the aforesaid
east right of way line of FM 1314 (Conroe Porter Road) and the south
line of State Highway 242;
THENCE, North 23° 14' 55" West - 200.33', continuing along
said east right-of-way line, and the west line of aforesaid Tract 2,
Parcel 2 to a point for corner;
THENCE, North 13° 30' 38" West - 995.85', continuing along
said common line, to a point for corner;
THENCE, North 12° 01' 58" West - 2102.94', continuing along
said common line, to a point for corner;
THENCE North 12° 33' 22" West - 1.21', along the aforesaid
east right of way line, and aforesaid west line of Tract 2, Parcel
2, and the aforesaid west line of Tract III, Parcel 1, to the point
of beginning of curve to the left;
THENCE, 1212.26', continuing along said east right-of-way
line, and the west line of said Tract III, Parcel 1 along said curve
to the left, having a radius of 1959.86', a central angle of 35° 26'
24", and a chord bearing and distance of North 30° 16' 34" West -
1193.03', to the end of curve;
THENCE North 48° 01' 22" West - 2935.99', continuing along
said common line, to the intersection of said common line, and the
north line of the Alfonzo Steel Survey, being the northwest corner
of said Tract III, Parcel 1;
THENCE, North 58° 58' 24" East - 3695.00', along said north
line to the north corner of said Tract III, Parcel 1, being the most
northerly west corner of the 178 acre tract of land described in the
deed recorded under Volume 20, Page 612 of the Deed Records of
Montgomery County, Texas;
THENCE South 30° 57' 11" East - 3592.37', along the east line
of said Tract III Parcel 1 and the southwest line of said 178 acre
tract, to an interior corner of said 178 acre tract;
THENCE South 59° 02' 57" West - 1387.45', along the south line
of said Tract III, Parcel 1 and the north line of said 178 acre
tract, to the most southerly west corner of said 178 acre tract;
THENCE South 30° 43' 40" East - 411.55', along a southwest
line of said 178 acre tract, to the south corner of said 178 acre
tract, in the south line of aforesaid Alfonzo Steel Survey, common
to a northwest line of aforesaid T. & N.O. Railroad Company, Section
4 Survey;
THENCE North 59° 36' 50" East - 3196.12', along said northwest
line, the northwest line of Tract 2, Parcel 2, the northwest line of
aforementioned Tract I, the southeast line of said Alfonzo Steel
Survey, and the southeast line of said 178 acre tract, to an
interior corner of said T. & N.O. Railroad Company, Section 4
Survey, common to the east corner of said Alfonzo Steel Survey, and
the east corner of said 178 acre tract;
THENCE North 30° 28' 49" West - 375.00', along the northwest
line of said Tract I, northwest line of said T. & N.O. Railroad
Company, Section 4 Survey, the northeast line of said Alfonzo Steel
Survey, and the northeast line of said 178 acre tract, to the most
northerly northwest corner of said Tract I and T. & N.O. Railroad
Company, Section 4 Survey;
THENCE North 89° 56' 58" East - 4636.24, along the north line
of said Tract I and T. & N.O. Railroad Company, Section 4 Survey, to
the POINT OF BEGINNING and containing 1229 acres of land, 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
8091, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8091.0307 to read as follows:
Sec. 8091.0307. 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.
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