| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the division of the Montgomery County Municipal Utility |
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| 6 | 8 | | District No. 152. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Subchapter C, Chapter 7932, Special District |
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| 9 | 11 | | Local Laws Code, is amended by adding Section 7932.106 to read as |
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| 10 | 12 | | follows: |
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| 11 | 13 | | Sec. 7932.106. DIVISION OF DISTRICT. (a) The district may |
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| 12 | 14 | | be divided into two or more new districts only if the district: |
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| 13 | 15 | | (1) has no outstanding bonded debt; and |
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| 14 | 16 | | (2) is not imposing ad valorem taxes. |
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| 15 | 17 | | (b) This chapter applies to any new district created by the |
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| 16 | 18 | | division of the district, and a new district has all the powers and |
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| 17 | 19 | | duties of the district. |
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| 18 | 20 | | (c) A new district created by the division of the district |
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| 19 | 21 | | may not, at the time the new district is created, contain any land |
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| 20 | 22 | | outside the area located within the district as of January 1, 2021. |
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| 21 | 23 | | (d) The board, on its own motion or on receipt of a petition |
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| 22 | 24 | | signed by the owner or owners of a majority of the assessed value of |
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| 23 | 25 | | the real property in the district, may adopt an order dividing the |
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| 24 | 26 | | district. |
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| 25 | 27 | | (e) The board may adopt an order dividing the district |
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| 26 | 28 | | before or after the date the board holds an election under Section |
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| 27 | 29 | | 7932.003 to confirm the district's creation. |
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| 28 | 30 | | (f) An order dividing the district shall: |
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| 29 | 31 | | (1) name each new district; |
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| 30 | 32 | | (2) include the metes and bounds description of the |
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| 31 | 33 | | territory of each new district; |
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| 32 | 34 | | (3) appoint temporary directors for each new district; |
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| 33 | 35 | | and |
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| 34 | 36 | | (4) provide for the division of assets and liabilities |
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| 35 | 37 | | between the new districts. |
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| 36 | 38 | | (g) On or before the 30th day after the date of adoption of |
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| 37 | 39 | | an order dividing the district, the district shall file the order |
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| 38 | 40 | | with the commission and record the order in the real property |
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| 39 | 41 | | records of each county in which the district is located. |
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| 40 | 42 | | (h) Any new district created by the division of the district |
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| 41 | 43 | | shall hold a confirmation and directors' election as required by |
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| 42 | 44 | | Section 7932.003. |
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| 43 | 45 | | (i) If the creation of the new district is confirmed, the |
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| 44 | 46 | | new district shall provide the election date and results to the |
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| 45 | 47 | | commission. |
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| 46 | 48 | | (j) Any new district created by the division of the district |
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| 47 | 49 | | must hold an election as required by this chapter to obtain voter |
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| 48 | 50 | | approval before the district may impose a maintenance tax or issue |
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| 49 | 51 | | bonds payable wholly or partly from ad valorem taxes. |
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| 50 | 52 | | (k) Municipal consent to the creation of the district and to |
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| 51 | 53 | | the inclusion of land in the district acts as municipal consent to |
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| 52 | 54 | | the creation of any new district created by the division of the |
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| 53 | 55 | | district and to the inclusion of land in the new district. |
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| 54 | 56 | | SECTION 2. This Act takes effect immediately if it receives |
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| 55 | 57 | | a vote of two-thirds of all the members elected to each house, as |
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| 56 | 58 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 57 | 59 | | Act does not receive the vote necessary for immediate effect, this |
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| 58 | 60 | | Act takes effect September 1, 2021. |
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| 59 | | - | ______________________________ ______________________________ |
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| 60 | | - | President of the Senate Speaker of the House |
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| 61 | | - | I hereby certify that S.B. No. 2174 passed the Senate on |
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| 62 | | - | May 5, 2021, by the following vote: Yeas 31, Nays 0. |
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| 63 | | - | ______________________________ |
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| 64 | | - | Secretary of the Senate |
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| 65 | | - | I hereby certify that S.B. No. 2174 passed the House on |
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| 66 | | - | May 8, 2021, by the following vote: Yeas 108, Nays 31, two present |
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| 67 | | - | not voting. |
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| 68 | | - | ______________________________ |
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| 69 | | - | Chief Clerk of the House |
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| 70 | | - | Approved: |
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| 71 | | - | ______________________________ |
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| 72 | | - | Date |
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| 73 | | - | ______________________________ |
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| 74 | | - | Governor |
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