Texas 2023 - 88th Regular

Texas House Bill HB5320 Compare Versions

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11 H.B. No. 5320
22
33
44 AN ACT
55 relating to the creation of the Montgomery County Municipal Utility
66 District No. 227; granting a limited power of eminent domain;
77 providing authority to issue bonds; providing authority to impose
88 assessments, fees, and taxes.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subtitle F, Title 6, Special District Local Laws
1111 Code, is amended by adding Chapter 7921A to read as follows:
1212 CHAPTER 7921A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
1313 NO. 227
1414 SUBCHAPTER A. GENERAL PROVISIONS
1515 Sec. 7921A.0101. DEFINITIONS. In this chapter:
1616 (1) "Board" means the district's board of directors.
1717 (2) "Commission" means the Texas Commission on
1818 Environmental Quality.
1919 (3) "Director" means a board member.
2020 (4) "District" means the Montgomery County Municipal
2121 Utility District No. 227.
2222 Sec. 7921A.0102. NATURE OF DISTRICT. The district is a
2323 municipal utility district created under Section 59, Article XVI,
2424 Texas Constitution.
2525 Sec. 7921A.0103. CONFIRMATION AND DIRECTOR ELECTION
2626 REQUIRED. The temporary directors shall hold an election to
2727 confirm the creation of the district and to elect five permanent
2828 directors as provided by Section 49.102, Water Code.
2929 Sec. 7921A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
3030 temporary directors may not hold an election under Section
3131 7921A.0103 until each municipality in whose corporate limits or
3232 extraterritorial jurisdiction the district is located has
3333 consented by ordinance or resolution to the creation of the
3434 district and to the inclusion of land in the district as required by
3535 applicable law.
3636 Sec. 7921A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
3737 (a) The district is created to serve a public purpose and benefit.
3838 (b) The district is created to accomplish the purposes of:
3939 (1) a municipal utility district as provided by
4040 general law and Section 59, Article XVI, Texas Constitution; and
4141 (2) Section 52, Article III, Texas Constitution, that
4242 relate to the construction, acquisition, improvement, operation,
4343 or maintenance of macadamized, graveled, or paved roads, or
4444 improvements, including storm drainage, in aid of those roads.
4545 Sec. 7921A.0106. INITIAL DISTRICT TERRITORY. (a) The
4646 district is initially composed of the territory described by
4747 Section 2 of the Act enacting this chapter.
4848 (b) The boundaries and field notes contained in Section 2 of
4949 the Act enacting this chapter form a closure. A mistake made in the
5050 field notes or in copying the field notes in the legislative process
5151 does not affect the district's:
5252 (1) organization, existence, or validity;
5353 (2) right to issue any type of bond for the purposes
5454 for which the district is created or to pay the principal of and
5555 interest on a bond;
5656 (3) right to impose a tax; or
5757 (4) legality or operation.
5858 SUBCHAPTER B. BOARD OF DIRECTORS
5959 Sec. 7921A.0201. GOVERNING BODY; TERMS. (a) The district
6060 is governed by a board of five elected directors.
6161 (b) Except as provided by Section 7921A.0202, directors
6262 serve staggered four-year terms.
6363 Sec. 7921A.0202. TEMPORARY DIRECTORS. (a) On or after the
6464 effective date of the Act enacting this chapter, the owner or owners
6565 of a majority of the assessed value of the real property in the
6666 district may submit a petition to the commission requesting that
6767 the commission appoint as temporary directors the five persons
6868 named in the petition. The commission shall appoint as temporary
6969 directors the five persons named in the petition.
7070 (b) Temporary directors serve until the earlier of:
7171 (1) the date permanent directors are elected under
7272 Section 7921A.0103; or
7373 (2) the fourth anniversary of the effective date of
7474 the Act enacting this chapter.
7575 (c) If permanent directors have not been elected under
7676 Section 7921A.0103 and the terms of the temporary directors have
7777 expired, successor temporary directors shall be appointed or
7878 reappointed as provided by Subsection (d) to serve terms that
7979 expire on the earlier of:
8080 (1) the date permanent directors are elected under
8181 Section 7921A.0103; or
8282 (2) the fourth anniversary of the date of the
8383 appointment or reappointment.
8484 (d) If Subsection (c) applies, the owner or owners of a
8585 majority of the assessed value of the real property in the district
8686 may submit a petition to the commission requesting that the
8787 commission appoint as successor temporary directors the five
8888 persons named in the petition. The commission shall appoint as
8989 successor temporary directors the five persons named in the
9090 petition.
9191 SUBCHAPTER C. POWERS AND DUTIES
9292 Sec. 7921A.0301. GENERAL POWERS AND DUTIES. The district
9393 has the powers and duties necessary to accomplish the purposes for
9494 which the district is created.
9595 Sec. 7921A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
9696 DUTIES. The district has the powers and duties provided by the
9797 general law of this state, including Chapters 49 and 54, Water Code,
9898 applicable to municipal utility districts created under Section 59,
9999 Article XVI, Texas Constitution.
100100 Sec. 7921A.0303. AUTHORITY FOR ROAD PROJECTS. Under
101101 Section 52, Article III, Texas Constitution, the district may
102102 design, acquire, construct, finance, issue bonds for, improve,
103103 operate, maintain, and convey to this state, a county, or a
104104 municipality for operation and maintenance macadamized, graveled,
105105 or paved roads, or improvements, including storm drainage, in aid
106106 of those roads.
107107 Sec. 7921A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
108108 road project must meet all applicable construction standards,
109109 zoning and subdivision requirements, and regulations of each
110110 municipality in whose corporate limits or extraterritorial
111111 jurisdiction the road project is located.
112112 (b) If a road project is not located in the corporate limits
113113 or extraterritorial jurisdiction of a municipality, the road
114114 project must meet all applicable construction standards,
115115 subdivision requirements, and regulations of each county in which
116116 the road project is located.
117117 (c) If the state will maintain and operate the road, the
118118 Texas Transportation Commission must approve the plans and
119119 specifications of the road project.
120120 Sec. 7921A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
121121 ORDINANCE OR RESOLUTION. The district shall comply with all
122122 applicable requirements of any ordinance or resolution that is
123123 adopted under Section 54.016 or 54.0165, Water Code, and that
124124 consents to the creation of the district or to the inclusion of land
125125 in the district.
126126 Sec. 7921A.0306. DIVISION OF DISTRICT. (a) The board, on
127127 its own motion or on receipt of a petition signed by the owner or
128128 owners of a majority of the assessed value of the real property in
129129 the district, may adopt an order dividing the district.
130130 (b) An order dividing a district may create one or more new
131131 districts and may provide for the continuation of the district.
132132 (c) An order dividing the district must:
133133 (1) name any new district;
134134 (2) include the metes and bounds description of the
135135 territory of each of the districts;
136136 (3) appoint temporary directors for any new district;
137137 and
138138 (4) provide for the division of assets and liabilities
139139 between the districts.
140140 (d) The board may adopt an order dividing the district
141141 before or after the date the board holds an election to confirm the
142142 district's creation.
143143 (e) The district may be divided only if the district:
144144 (1) has never issued any bonds; and
145145 (2) is not imposing ad valorem taxes.
146146 (f) A new district created by the division of the district
147147 may not, at the time the new district is created, contain any land
148148 outside the area described by Section 2 of the Act enacting this
149149 chapter.
150150 (g) On or before the 30th day after the date of adoption of
151151 an order dividing the district, the district shall file the order
152152 with the commission and record the order in the real property
153153 records of each county in which the district is located.
154154 (h) This chapter applies to any new district created by the
155155 division of the district, and a new district has all the powers and
156156 duties of the district.
157157 (i) A new district created by the division of the district
158158 shall hold a confirmation and directors' election.
159159 (j) If the creation of the new district is confirmed, the
160160 new district shall provide the election date and results to the
161161 commission.
162162 (k) A new district created by the division of the district
163163 must hold an election as required by this chapter to obtain voter
164164 approval before the district may impose a maintenance tax or issue
165165 bonds payable wholly or partly from ad valorem taxes.
166166 (l) The district may continue to rely on confirmation,
167167 directors', bond, or tax elections held prior to the division.
168168 (m) Municipal consent to the creation of the district and to
169169 the inclusion of land in the district acts as municipal consent to
170170 the creation of any new district created by the division of the
171171 district and to the inclusion of land in the new district.
172172 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
173173 Sec. 7921A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
174174 The district may issue, without an election, bonds and other
175175 obligations secured by:
176176 (1) revenue other than ad valorem taxes; or
177177 (2) contract payments described by Section
178178 7921A.0403.
179179 (b) The district must hold an election in the manner
180180 provided by Chapters 49 and 54, Water Code, to obtain voter approval
181181 before the district may impose an ad valorem tax or issue bonds
182182 payable from ad valorem taxes.
183183 (c) The district may not issue bonds payable from ad valorem
184184 taxes to finance a road project unless the issuance is approved by a
185185 vote of a two-thirds majority of the district voters voting at an
186186 election held for that purpose.
187187 Sec. 7921A.0402. OPERATION AND MAINTENANCE TAX. (a) If
188188 authorized at an election held under Section 7921A.0401, the
189189 district may impose an operation and maintenance tax on taxable
190190 property in the district in accordance with Section 49.107, Water
191191 Code.
192192 (b) The board shall determine the tax rate. The rate may not
193193 exceed the rate approved at the election.
194194 Sec. 7921A.0403. CONTRACT TAXES. (a) In accordance with
195195 Section 49.108, Water Code, the district may impose a tax other than
196196 an operation and maintenance tax and use the revenue derived from
197197 the tax to make payments under a contract after the provisions of
198198 the contract have been approved by a majority of the district voters
199199 voting at an election held for that purpose.
200200 (b) A contract approved by the district voters may contain a
201201 provision stating that the contract may be modified or amended by
202202 the board without further voter approval.
203203 SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
204204 Sec. 7921A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
205205 OBLIGATIONS. The district may issue bonds or other obligations
206206 payable wholly or partly from ad valorem taxes, impact fees,
207207 revenue, contract payments, grants, or other district money, or any
208208 combination of those sources, to pay for any authorized district
209209 purpose.
210210 Sec. 7921A.0502. TAXES FOR BONDS. At the time the district
211211 issues bonds payable wholly or partly from ad valorem taxes, the
212212 board shall provide for the annual imposition of a continuing
213213 direct ad valorem tax, without limit as to rate or amount, while all
214214 or part of the bonds are outstanding as required and in the manner
215215 provided by Sections 54.601 and 54.602, Water Code.
216216 Sec. 7921A.0503. BONDS FOR ROAD PROJECTS. At the time of
217217 issuance, the total principal amount of bonds or other obligations
218218 issued or incurred to finance road projects and payable from ad
219219 valorem taxes may not exceed one-fourth of the assessed value of the
220220 real property in the district.
221221 SECTION 2. The Montgomery County Municipal Utility District
222222 No. 227 initially includes all the territory contained in the
223223 following area:
224224 Being 581.9 acres of land, more or less, located in the John
225225 Corner Survey, Abstract 8, Thomas Chatham Survey, Abstract 127, and
226226 the Raleigh Rogers Survey, Abstract 33, C. B. Stewart Survey,
227227 Abstract 479, and the William W. Shepperd Survey, Abstract 480,
228228 Montgomery County, Texas, out of land conveyed to Homeplace Lands,
229229 LLC, as recorded under Clerk's File No. 2012125424 of the Official
230230 Public Records of Real Property, Montgomery County, Texas,
231231 (O.P.R.M.C.), being comprised if three (3) tracts as described
232232 below; said 581.9 acres, more or less, being more particularly
233233 described as follows, with all bearings referenced to the Texas
234234 Coordinate System, Central Zone, NAD83 (NA2011) Epoch 2010.00:
235235 TRACT 1: 11.9 Acres
236236 BEGINNING at a westerly corner of Hilltop Ranch, Section 1, a
237237 plat as recorded in Cabinet "O", Sheet 138, of the Montgomery County
238238 Map Records (M.C.M.R.), lying in an easterly right-of-way line of
239239 FM 2854 (width varies), and a northerly line of land conveyed to
240240 Homeplace Lands, LLC, as recorded under Clerk's File
241241 No. 2012125424, of the O.P.R.M.C.;
242242 THENCE EASTERLY approximately 498 feet, more or less, with
243243 and adjoining a westerly line of said Hilltop Ranch, Section 1, to
244244 the northeast corner of the herein described tract;
245245 THENCE SOUTHERLY approximately 1,208 feet, more or less, with
246246 and adjoining said westerly line of said Hilltop Ranch, Section 1,
247247 to the southeast corner of the herein described tract, lying in the
248248 common Extra Territorial Jurisdiction (ETJ) line of the City of
249249 Conroe and the City of Montgomery, Texas;
250250 THENCE SOUTHWESTERLY approximately 201 feet, more or less,
251251 along a curve to the right, with and adjoining said common City of
252252 Conroe and City of Montgomery ETJ line, to the southwest corner of
253253 the herein described tract, lying in said easterly line of FM 2854;
254254 THENCE NORTHERLY approximately 1,333 feet, more or less, with
255255 and adjoining said easterly right-of-way line of F.M. 2854, to the
256256 POINT OF BEGINNING, and containing approximately 11.9 acres of
257257 land. This document was prepared under 22 Texas Administrative Code §
258258 138.95, does not reflect the results of an on the ground survey,
259259 and is not to be used to convey or establish interests in real
260260 property except those rights and interests implied or established
261261 by the creation or reconfiguration of the boundary of the political
262262 subdivision for which it was prepared.
263263 TRACT 2: 370 Acres
264264 Being 370 acres of land out of the John Corner Survey,
265265 Abstract 8, William W. Shepperd Survey, A-480, C. B. Stewart
266266 Survey, Abstract 479, Thomas Chatham Survey, A-127, and the Raleigh
267267 Rogers Survey, A-33, Montgomery County, Texas:
268268 Beginning at the northwest corner of a 60 foot by 60 foot
269269 cemetery, as defined under Clerk's File No. 2011113416 of the
270270 Official Public Records Montgomery County, Texas (O.P.R.M.C.),
271271 lying in an easterly right-of-way line of FM 149, and being a
272272 westerly corner of land described under Clerks File No. 2012125424
273273 of the O.P.R.M.C.;
274274 THENCE NORTHERLY approximately 492 feet, more or less, with
275275 and adjoining said easterly right-of-way line of F.M. 149, to the
276276 northwest corner of the herein described tract, lying in a
277277 southerly City of Montgomery, City Limit line;
278278 THENCE EASTERLY approximately 2,028 feet, more or less, with
279279 and adjoining a said southerly City Limit line, to a southerly line
280280 of a 14.755 acre tract as defined under Clerk's File No. 2018119879
281281 of the O.P.R.M.C., for a northerly corner of the herein described
282282 tract;
283283 THENCE SOUTHEASTERLY approximately 151 feet, more or less,
284284 with and adjoining said southerly line of the 14.755 acre tract, to
285285 a northerly corner of the herein described tract;
286286 THENCE NORTHEASTERLY approximately 50 feet, more or less,
287287 with and adjoining said southerly line of the 14.755 acre tract, to
288288 a northerly corner of the herein described tract, lying in said
289289 southerly City Limit line;
290290 THENCE EASTERLY approximately 3,448 feet, more or less, with
291291 and adjoining said southerly City Limit line, to a northerly corner
292292 of the herein described tract;
293293 THENCE NORTHERLY approximately 3,346 feet, more or less, with
294294 and adjoining said southerly City Limit line, to a northerly corner
295295 of the herein described tract;
296296 THENCE EASTERLY approximately 806 feet, more or less, with
297297 and adjoining said southerly City Limit line, to the northeast
298298 corner of the herein described tract, lying in a westerly
299299 right-of-way line of FM 2854;
300300 THENCE SOUTHERLY approximately 5,500 feet, more or less, with
301301 and adjoining said westerly right-of-way line of FM 2854, to the
302302 southeast corner of the herein described tract, also being the
303303 northeast corner of a 22.178 acre tract as recorded under Clerk's
304304 File No. 2018119879 of the O.P.R.M.C.;
305305 THENCE WESTERLY approximately 1,148 feet, more or less, with
306306 and adjoining the northerly line of said 22.178 acre tract, to a
307307 southerly corner of the herein described tract;
308308 THENCE SOUTHERLY approximately 662 feet, more or less, with
309309 and adjoining the westerly line of said 22.178 acre tract, to a
310310 southerly corner of the herein described tract, lying in a common
311311 Extra Territorial Jurisdiction (ETJ) line of the City of Conroe and
312312 the City of Montgomery, Texas;
313313 THENCE WESTERLY approximately 2,377 feet, more or less, with
314314 and adjoining said common ETJ line, to a southerly corner of the
315315 herein described tract;
316316 THENCE SOUTHERLY approximately 3,273 feet, more or less, with
317317 and adjoining said common ETJ line, to the most southerly corner of
318318 the herein described tract, lying in the north easterly
319319 right-of-way line of the BN & SF Railroad;
320320 THENCE NORTHWESTERLY approximately 1,034 feet, more or less,
321321 with and adjoining said northeasterly right-of-way line of the BN &
322322 SF Railroad, to a westerly corner of the herein described tract;
323323 THENCE NORTHWESTERLY approximately 71 feet, more or less to a
324324 southerly corner of Shannon Place, a plat as recorded in Cabinet
325325 "D", Sheet 160-A, of the Montgomery County Map Records (M.C.M.R.);
326326 THENCE NORTHERLY approximately 4,046 feet, more or less, with
327327 and adjoining the easterly line of said Shannon Place, to the
328328 northeast corner of said plat, lying in a southerly line of the C.
329329 B. Stewart Survey, A-479, as shown on said plat;
330330 THENCE WESTERLY approximately 1,628 feet, more of less, with
331331 and adjoining the northerly line of said Shannon Place, to a
332332 westerly corner of the herein described tract;
333333 THENCE NORTHERLY approximately 1,120 feet, more or less, with
334334 and adjoining a northerly line of said Shannon Place and an easterly
335335 line of a 10.59 acre tract as recorded under Clerk's File
336336 No. 2011113416 of the O.P.R.M.C., to a westerly corner of the
337337 herein described tract;
338338 THENCE WESTERLY approximately 438 feet, more or less, with
339339 and adjoining the northerly line of said 10.59 acre tract and said
340340 cemetery tract, to the POINT OF BEGINNING, and containing
341341 approximately 370 acres of land. This document was prepared under
342342 22 Texas Administrative Code §138.95, does not reflect the results
343343 of an on the ground survey, and is not to be used to convey or
344344 establish interests in real property except those rights and
345345 interests implied or established by the creation or reconfiguration
346346 of the boundary of the political subdivision for which it was
347347 prepared.
348348 TRACT 3: 180 Acres
349349 Being 180 acres of land out of the Raleigh Rogers Survey,
350350 A-33, Montgomery County, Texas:
351351 BEGINNING at a southwest corner of a 23.362 acre tract, as
352352 described in a deed recorded under Clerk's File No. 2006-104958 of
353353 the Official Public Records of Real Property Montgomery County,
354354 Texas (O.P.R.R.P.M.C.)., lying in the easterly right-of-way line of
355355 F.M. 149, and being a westerly corner of land described under Clerks
356356 File No. 2012125424 of the Official Public Records Montgomery
357357 County, Texas (O.P.R.M.C.);
358358 THENCE EASTERLY approximately 1,669 feet, more or less, with
359359 and adjoining a southerly line of said 23.362 acre tract, also being
360360 a southerly line of the Montgomery 149, LLC tract as recorded under
361361 Clerk's File No. 2018058916 of the O.P.R.M.C., to a westerly
362362 interior corner of the herein described tract;
363363 THENCE NORTHERLY approximately 2,151 feet, more or less, with
364364 and adjoining the easterly line of said Montgomery 149, LLC tract to
365365 an easterly interior corner of said Montgomery 149, LLC tract, also
366366 being a northerly corner of the herein described tract;
367367 THENCE EASTERLY approximately 302 feet, more or less, with
368368 and adjoining said Montgomery 149, LLC tract, to the northeast
369369 corner of the herein described tract, lying in a southwesterly
370370 right-of-way line of the BN & SF Railroad;
371371 THENCE SOUTHEASTERLY approximately 918 feet, more or less,
372372 with and adjoining a southwesterly right-of-way line of the BN & SF
373373 Railroad, to an easterly corner of the herein described tract,
374374 lying in the common Extra Territorial Jurisdiction (ETJ) line of
375375 the City of Conroe and the City of Montgomery, Texas;
376376 THENCE SOUTHERLY approximately 3,811 feet, more or less, with
377377 and adjoining said common ETJ line, to the southeast corner of the
378378 herein described tract, lying in a northerly line of land as
379379 described in a warranty deed to Earle T. McCants and Edward W.
380380 McCants as recorded under Clerk's File No. 99002183 of the
381381 O.P.R.R.P.M.C.;
382382 THENCE WESTERLY approximately 2,561 feet, more or less, with
383383 and adjoining said northerly line of Earle T. McCants and Edward W.
384384 McCants tract, to the southwest corner of the herein described
385385 tract, lying in said easterly right-of-way line of FM 149;
386386 THENCE NORTHERLY approximately 2,391 feet, more or less, with
387387 and adjoining said easterly right-of-way line of FM 149, to the
388388 POINT OF BEGINNING, and containing approximately 180 acres. This
389389 document was prepared under 22 Texas Administrative Code §138.95,
390390 does not reflect the results of an on the ground survey, and is not
391391 to be used to convey or establish interests in real property except
392392 those rights and interests implied or established by the creation
393393 or reconfiguration of the boundary of the political subdivision for
394394 which it was prepared.
395395 SECTION 3. (a) The legal notice of the intention to
396396 introduce this Act, setting forth the general substance of this
397397 Act, has been published as provided by law, and the notice and a
398398 copy of this Act have been furnished to all persons, agencies,
399399 officials, or entities to which they are required to be furnished
400400 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
401401 Government Code.
402402 (b) The governor, one of the required recipients, has
403403 submitted the notice and Act to the Texas Commission on
404404 Environmental Quality.
405405 (c) The Texas Commission on Environmental Quality has filed
406406 its recommendations relating to this Act with the governor, the
407407 lieutenant governor, and the speaker of the house of
408408 representatives within the required time.
409409 (d) All requirements of the constitution and laws of this
410410 state and the rules and procedures of the legislature with respect
411411 to the notice, introduction, and passage of this Act are fulfilled
412412 and accomplished.
413413 SECTION 4. (a) If this Act does not receive a two-thirds
414414 vote of all the members elected to each house, Subchapter C, Chapter
415415 7921A, Special District Local Laws Code, as added by Section 1 of
416416 this Act, is amended by adding Section 7921A.0307 to read as
417417 follows:
418418 Sec. 7921A.0307. NO EMINENT DOMAIN POWER. The district may
419419 not exercise the power of eminent domain.
420420 (b) This section is not intended to be an expression of a
421421 legislative interpretation of the requirements of Section 17(c),
422422 Article I, Texas Constitution.
423423 SECTION 5. This Act takes effect immediately if it receives
424424 a vote of two-thirds of all the members elected to each house, as
425425 provided by Section 39, Article III, Texas Constitution. If this
426426 Act does not receive the vote necessary for immediate effect, this
427427 Act takes effect September 1, 2023.
428428 ______________________________ ______________________________
429429 President of the Senate Speaker of the House
430430 I certify that H.B. No. 5320 was passed by the House on May 2,
431431 2023, by the following vote: Yeas 111, Nays 34, 2 present, not
432432 voting.
433433 ______________________________
434434 Chief Clerk of the House
435435 I certify that H.B. No. 5320 was passed by the Senate on May
436436 21, 2023, by the following vote: Yeas 27, Nays 4.
437437 ______________________________
438438 Secretary of the Senate
439439 APPROVED: _____________________
440440 Date
441441 _____________________
442442 Governor