S.B. No. 2163
AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 199; 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 8499 to read as follows:
CHAPTER 8499. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 199
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8499.0101. 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. 199.
Sec. 8499.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8499.0103. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The temporary directors shall hold an election to
confirm the creation of the district and to elect five permanent
directors as provided by Section 49.102, Water Code.
Sec. 8499.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8499.0103 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. 8499.0105. 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. 8499.0106. 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. 8499.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8499.0202, directors
serve staggered four-year terms.
Sec. 8499.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Joshua Kelly Hancock;
(2) Santina Daily;
(3) Linda Perez;
(4) Sue Robinson; and
(5) Quency D. Perkins.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8499.0103; or
(2) September 1, 2025.
(c) If permanent directors have not been elected under
Section 8499.0103 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 8499.0103; 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. 8499.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8499.0302. 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. 8499.0303. 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. 8499.0304. 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. 8499.0305. 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. 8499.0306. DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if the district:
(1) has no outstanding bonded debt; 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
8499.0103 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) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 8499.0103. If the voters of a new district do not confirm
the creation of the new district, the assets, obligations,
territory, and governance of the new district revert to the
original district.
(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
8499.0104 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. 8499.0401. 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 8499.0403.
(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. 8499.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8499.0401, 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. 8499.0403. 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. 8499.0501. 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. 8499.0502. 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. 8499.0503. 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. 199 initially includes all the territory contained in the
following area:
Being 310.3 acres of land in the Soloman Brown Survey,
Abstract 5, Montgomery County, Texas, said 310.3 acres being a
portion of a called 40.0202 acre tract described in the deed to
James R. Fogarty and Cheryl L. Fogarty by an instrument of record in
Document Number 2018005474 of the Official Public Records of
Montgomery County, Texas (M.C.O.P.R.), a portion of a called
103.1967 acre tract described in the deed to MA Goodson
Enterprises, Inc, by an instrument of record in File Number 9401044
of the Official Public Records of Real Property of Montgomery
County, Texas (M.C.O.P.R.R.P.), a portion of a called 62.5930 acre
tract described in the deed to MA Goodson Enterprises, Inc by an
instrument of record in File Number 9401047, M.C.O.P.R.R.P., a
portion of a called 20 acre tract described in the deed to James R.
Fogarty by an instrument of record in File Number 2005-085111,
M.C.O.P.R.R.P., all of the remainder of a called 29.881 acre tract
described in the deed to James R. Fogarty and Cheryl L. Fogarty by
an instrument of record in Document Number 9401042, M.C.O.P.R., all
of a called 40.074 acre tract described in the deed to James R.
Fogarty by an instrument of record in File Number 2007-035819,
M.C.O.P.R.R.P., all a called 16.706 acre tract described in the
deed to Seung Teak Yoo and Sood Hee Yoo by an instrument of record in
File Number 2007-081356, M.C.O.P.R.R.P., and all of the remainder
of a called 61.39 acre tract described in the deed to Christine
Lewis-Lyman by an instrument of record in File Number 2000-063284,
M.C.O.P.R.R.P., said 310.3 acre tract being more particularly
described by metes and bounds as follows (Bearings based on said
40.0202 acre tract);
BEGINNING at the northeast corner of said 29.881-acre tract;
Thence, along the east line of said 29.881-acre tract the following
two (2) courses:
1. South 01° 07' 23" East, 111.60 feet to a point for corner;
2. South 00° 02' 23" East, 1,418.50 feet to the northeast
corner of a called 2.003-acre tract described in the deed to James
R. Fogarty and Senie Paulette Fogarty by an instrument of record in
File Number 9721964, M.C.O.P.R.R.P.;
Thence, along the north and west line of said 2.003-acre tract the
following three (3) courses:
1. South 89° 53' 52" West, 310.90 feet to a point for corner;
2. South 33° 32' 08" East, 263.98 feet to a point for corner;
3. South 16° 14' 02" West, 185.49 feet to the southwest
corner of said 2.003 acre tract, same being on the north line of a
called 52.8273 acre tract described in the deed to John W. Caveness
and Connie M. Caveness by an instrument of record in File Number
2000-096833, M.C.O.P.R.R.P.;
Thence, along the north and west lines of said 52.8273-acre tract
the following two (2) courses:
1. North 88° 13' 49" West, 460.67 feet to a point for corner
on the east line of the aforementioned 103.1967-acre tract;
2. South 00° 07' 22" East, along the east line of said
103.1967-acre tract, 854.94 feet the northeast corner of the
aforementioned 40.0202-acre tract;
Thence, along the north, and east line of said 40.0202-acre tract
the following eight (8) courses:
1. North 89° 59' 04" East, 616.71 feet to a point for corner;
2. North 00° 11' 41" West, 203.03 feet to a point for corner;
3. North 89° 59' 04" East, 59.61 feet to a point for corner;
4. South 00° 02' 44" East, 100.03 feet to a point for corner;
5. North 88° 12' 49" West, 1.00 feet to a point for corner;
6. South 00° 11' 41" East, 500.34 feet to a point for corner;
7. South 00° 16' 14" East, 1,185.29 feet to a point for
corner;
8. South 00° 45' 09" West, 228.66 feet to a point for corner;
Thence, South 66° 54' 29" West, departing the east line of said
40.0202 acre tract and across said 40.0202 acre tract, the
aforementioned 103.1967 acre tract, the aforementioned 62.5930
acre tract, and the aforementioned 20 acre tract, 3,145.13 feet to a
point for corner on the west line of said 20 acre tract;
Thence, North 00° 10' 05" West, along the west line of said 20-acre
tract, 830.64 feet to the northwest corner of said 20 acre tract,
same being on the west line of the aforementioned 61.39 acre tract;
Thence, along the west line of said 61.39-acre tract the following
two (2) courses:
1. North 00° 10' 05" West, 1,764.87 feet to a point for
corner;
2. North 02° 02' 55" East, 942.94 feet to the northwest
corner of said 61.39-acre tract, same being the southwest corner of
the aforementioned 16.706-acre tract;
Thence, along the west and north lines of said 16.706-acre tract the
following eight (8) courses:
1. North 00° 44' 18" East, 643.03 feet to a point for corner;
2. South 89° 51' 13" East, 99.90 feet to a point for corner;
3. North 00° 44' 18" East, 146.55 feet to a point for corner;
4. South 88° 53' 29" West, 350.80 feet to a point for corner;
5. North 00° 37' 44" East, 60.02 feet to a point for corner;
6. North 88° 53' 29" East, 250.97 feet to a point for corner;
7. North 00° 44' 18" East, 285.92 feet to a point for corner;
8. South 88° 57' 25" East, 641.64 feet to the northeast
corner of said 16.706-acre tract, same being on the west line of the
aforementioned 40.074-acre tract;
Thence, along the west and north lines of said 40.074-acre tract the
following three (3) courses:
1. North 00° 44' 18" East, 1,133.33 feet to a point for
corner;
2. North 89° 51' 31" East, 38.98 feet to a point for corner;
3. North 89° 56' 48" East, 722.00 feet to the northeast
corner of said 40.074-acre tract, same being the northwest corner
of the aforementioned 103.1967-acre tract;
Thence, along the north line of said 103.1967-acre tract, the
following two (2) courses:
1. North 89° 16' 55" East, 215.01 feet to a point for corner;
2. North 89° 27' 57" East, 535.44 feet to the northeast
corner of said 103.1967-acre tract, same being the northwest corner
of the aforementioned 29.881-acre tract;
Thence, along the north line of said 29.881-acre tract the
following two (2) courses:
1. North 89° 27' 57" East, 200.34 feet to a point for corner;
2. North 88° 40' 09" East, 478.07 feet to the POINT OF
BEGINNING and containing 310.3 acres of land.
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
8499, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8499.0307 to read as follows:
Sec. 8499.0307. 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 September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2163 passed the Senate on
May 5, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2163 passed the House on
May 8, 2021, by the following vote: Yeas 103, Nays 36, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor