By: Metcalf (Senate Sponsor - Kolkhorst) H.B. No. 5339
(In the Senate - Received from the House May 3, 2023;
May 4, 2023, read first time and referred to Committee on Local
Government; May 15, 2023, reported favorably by the following
vote: Yeas 7, Nays 0; May 15, 2023, 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. 223; 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 7955A to read as follows:
CHAPTER 7955A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.
223
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7955A.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. 223.
Sec. 7955A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7955A.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. 7955A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7955A.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 as required by
applicable law.
Sec. 7955A.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. 7955A.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. 7955A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7955A.0202, directors
serve staggered four-year terms.
Sec. 7955A.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 7955A.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 7955A.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 7955A.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. 7955A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7955A.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. 7955A.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. 7955A.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. 7955A.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. 7955A.0306. DIVISION OF DISTRICT. (a) 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.
(b) An order dividing a district may create one or more new
districts and may provide for the continuation of the district.
(c) An order dividing the district must:
(1) name any new district;
(2) include the metes and bounds description of the
territory of each of the districts;
(3) appoint temporary directors for any new district;
and
(4) provide for the division of assets and liabilities
between the districts.
(d) The board may adopt an order dividing the district
before or after the date the board holds an election to confirm the
district's creation.
(e) The district may be divided only if the district:
(1) has never issued any bonds; and
(2) is not imposing ad valorem taxes.
(f) 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.
(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) 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.
(i) A new district created by the division of the district
shall hold a confirmation and directors' election.
(j) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(k) A 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.
(l) The district may continue to rely on confirmation,
directors', bond, or tax elections held prior to the division of the
district.
(m) Municipal consent to the creation of the district and to
the inclusion of land in the district 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. 7955A.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
7955A.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. 7955A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7955A.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. 7955A.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. 7955A.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. 7955A.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. 7955A.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. Montgomery County Municipal Utility District
No. 223 initially includes all the territory contained in the
following area:
An 819.0 acre tract of land situated in the W.M. Rankin
Survey, Abstract No. 30, and the N. Griffin Survey, Abstract
No. 16, Montgomery County, Texas; said 819.0 acre tract of land
being out of and a part of a called 537.81 acre tract of land and a
called 680.88 acre tract of land as conveyed to Thomas McGrady and
recorded under Volume 695, Page 156 of the Deed Records of
Montgomery County, Texas (M.C.D.R.); said 819.0 acre tract of land
being more particularly described by metes and bounds as follows:
NOTE: The basis of bearings is referenced to the Texas State
Plane Coordinate System of 1983, South Central Zone (#4204), as
defined by article 21.071 of the Natural Resources Code of the State
of Texas, 1983 Datum (2001 adjustment). All distances are actual
distances.
BEGINNING at a the Easternmost corner of said McGrady tract
of land, the Northeast corner of a called 40.26 acre tract of land
as conveyed to Sarah Martin and recorded under County Clerk's File
Number (M.C.C.F. No.) 8736234 of the Official Public Records of
Real Property (O.P.R.O.R.P.) and being in the Western right-of-way
line of Spring Branch Road (60' right-of-way & 60' prescriptive
right-of-way) as recorded under Volume 372, Page 276 of the
M.C.D.R.
THENCE S 86°42'47" W, with an interior line of said McGrady
tract of land and the North line of said 41 acre tract of land, at a
distance of 1,231.86 feet passing the Northwest corner of said 41
acre tract of land and the Northeast corner of a called 12.36 acre
tract of land as conveyed to Richard Hill and recorded under Volume
153, Page 465 of the M.C.D.R., and continuing for a total distance
of 1,505.85 feet, to a 1/2" iron pipe found for the Northwest corner
of said 12.36 acre tract of land and an interior corner of said
McGrady tract of land.
THENCE S 02°56'09" E, with an interior line of said McGrady
tract of land and the West line of said 12.36 acre tract of land, a
distance of 481.80 feet, to an interior point for said McGrady tract
of land and an interior point of said 12.36 acre tract of land.
THENCE S 87°11'51" W, with an interior line of said McGrady
tract of land and the said 12.36 acre tract of land, a distance of
446.00 feet, to a 1/2" iron pipe found for an interior corner of
said McGrady tract of land and the Northwest corner of said 12.36
acre tract of land.
THENCE S 02°56'09" E, with an interior line of said McGrady
tract of land and the West line of said 12.36 acre tract of land, a
distance of 569.70 feet, to a 1/2" iron pipe found for an interior
corner of said McGrady tract of land, the Southwest corner of said
12.36 acre tract of land and being in the North line of a called 50
acre tract of land as conveyed to KRP Properties 1, LLC and recorded
under M.C.C.F. No. 2018042281 of the O.P.R.O.R.P.
THENCE S 86°34'00" W, with the interior line of said McGrady
tract of land and the North line of said 50 acre tract of land, a
distance of 1,216.16 feet, to a point for corner.
THENCE N 88°54'56" W, with the interior line of said McGrady
tract of land and the North line of said 50 acre tract of land, a
distance of 154.61 feet, to an interior point of said McGrady tract
of land, and the Northwest corner of said 50 acre tract of land.
THENCE S 16°01'18" E, with the interior line of said McGrady
tract of land and the Southwest line of said 50 acre tract of land, a
distance of 56.45 feet, to a point for corner.
THENCE S 57°34'14" E, with the interior line of said McGrady
tract of land and the Southwest line of said 50 acre tract of land, a
distance of 1,472.12 feet, to an interior point for this tract of
land, being in the Southwest line of said 50 acre tract of land, and
the Northwest corner of a called 100.00 acre tract of land as
conveyed to Firdaus P. Jhabvala and Josefina Ososrio Avalos and
recorded under M.C.C.F. No. 2014020922 of the O.P.R.O.R.P.
THENCE with the East line of said McGrady tract of land and
the West line of said 100.00 acre tract of land, the following
courses and distances:
1. S 00°19'11" E, a distance of 1,049.86 feet, to a point for
corner.
2. S 11°21'37" W, a distance of 991.73 feet, to a point for
corner.
3. S 56°16'33" W, a distance of 15.04 feet, to a point for
corner.
4. S 09°01'56" W, a distance of 512.88 feet, to a point for
the Southeast corner of said McGrady tract of land and the Southwest
corner of said 100.00 acre tract of land.
THENCE with the West line of said McGrady tract of land the
following courses and distances:
1. N 55°08'39" W, a distance of 257.97 feet, to a point for
corner.
2. N 74°32'21" W, a distance of 252.82 feet, to a point for
corner.
3. S 79°05'19" W, a distance of 106.56 feet, to a point for
corner.
4. S 31°16'38" W, a distance of 194.00 feet, to a point for
corner.
5. S 56°18'43" W, a distance of 159.56 feet, to a point for
corner.
6. N 72°01'22" W, a distance of 354.34 feet, to a point for
corner.
7. N 44°48'11" W, a distance of 313.53 feet, to a point for
corner.
8. N 61°48'15" W, a distance of 154.90 feet, to a point for
corner.
9. N 70°51'53" W, a distance of 87.12 feet, to a point for
corner.
10. N 88°06'33" W, a distance of 408.00 feet, to a point for
corner.
11. N 20°17'36" W, a distance of 153.35 feet, to a point for
corner.
12. N 24°19'33" W, a distance of 168.70 feet, to a point for
corner.
13. S 65°40'27" W, a distance of 262.10 feet, to a point for
corner.
14. N 58°30'33" W, a distance of 225.90 feet, to a point for
corner.
15. N 08°42'33" W, a distance of 85.10 feet, to a point for
corner.
16. N 36°31'27" E, a distance of 151.60 feet, to a point for
corner.
17. N 28°00'33" W, a distance of 98.60 feet, to a point for
corner.
18. N 77°23'33" W, a distance of 141.60 feet, to a point for
corner.
19. S 83°22'27" W, a distance of 363.00 feet, to a point for
corner.
20. N 60°51'33" W, a distance of 151.30 feet, to a point for
corner.
21. N 60°04'33" W, a distance of 145.90 feet, to a point for
corner.
22. N 15°41'27" E, a distance of 371.00 feet, to a point for
corner.
23. N 26°34'27" E, a distance of 175.90 feet, to a point for
corner.
24. S 55°49'27" W, a distance of 138.00 feet, to a point for
corner.
25. N 48°43'33" W, a distance of 157.00 feet, to a point for
corner.
26. N 26°31'33" W, a distance of 205.70 feet, to a point for
corner.
27. N 00°47'33" W, a distance of 146.00 feet, to a point for
corner.
28. N 16°58'27" E, a distance of 301.40 feet, to a point for
corner.
29. N 74°45'27" E, a distance of 154.60 feet, to a point for
corner.
30. S 46°34'33" E, a distance of 316.90 feet, to a point for
corner.
31. N 42°59'27" E, a distance of 70.70 feet, to a point for
corner.
32. N 18°37'33" W, a distance of 597.20 feet, to a point for
corner.
33. N 67°58'33" W, a distance of 229.90 feet, to a point for
corner.
34. N 53°33'33" W, a distance of 55.60 feet, to a point for
corner.
35. N 88°31'33" W, a distance of 211.70 feet, to a point for
corner.
36. N 25°10'33" W, a distance of 62.70 feet, to a point for
corner.
37. N 16°52'27" E, a distance of 122.60 feet, to a point for
corner.
38. N 43°14'27" E, a distance of 204.40 feet, to a point for
corner.
39. N 25°19'33" W, a distance of 132.70 feet, to a point for
corner.
40. S 74°24'27" W, a distance of 330.40 feet, to a point for
corner.
41. N 34°20'33" W, a distance of 339.70 feet, to a point for
corner.
42. N 08°45'33" W, a distance of 343.50 feet, to a point for
corner.
43. N 33°07'27" E, a distance of 274.30 feet, to a point for
corner.
44. N 19°28'33" W, a distance of 232.30 feet, to a point for
corner.
45. N 87°38'20" E, a distance of 1,203.17 feet, to a point for
corner.
46. N 28°58'47" E, a distance of 115.50 feet, to a point for
corner.
47. N 00°44'47" E, a distance of 300.00 feet, to a point for
corner.
48. N 10°23'13" W, a distance of 247.00 feet, to a point for
corner.
49. N 14°00'47" E, a distance of 160.00 feet, to a point for
corner.
50. N 15°57'47" E, a distance of 127.00 feet, to a point for
corner.
51. N 34°16'47" E, a distance of 185.40 feet, to a point for
corner.
52. N 15°14'47" E, a distance of 178.00 feet, to a point for
corner.
53. N 33°37'47" E, a distance of 214.00 feet, to a point for
corner.
54. N 55°22'47" E, a distance of 213.70 feet, to a point for
corner.
55. N 26°31'47" E, a distance of 152.00 feet, to a point for
corner.
56. N 07°12'13" W, a distance of 85.00 feet, to a point for
corner.
57. N 17°22'47" E, a distance of 285.40 feet, to a point for
corner.
58. N 31°32'47" E, a distance of 145.00 feet, to a point for
corner.
59. N 00°01'47" E, a distance of 452.80 feet, to a point for
corner.
60. N 41°38'13" W, a distance of 335.40 feet, to a point for
corner.
61. N 23°34'47" E, a distance of 240.20 feet, to a point for
corner.
62. S 86°57'13" E, a distance of 293.00 feet, to a point for
corner.
63. N 14°02'47" E, a distance of 60.80 feet, to a point for
corner.
64. N 04°16'13" W, a distance of 141.60 feet, to a point for
corner.
65. N 42°16'13" W, a distance of 276.90 feet, to a point for
corner.
66. N 53°00'13" W, a distance of 360.70 feet, to a point for
corner.
67. N 09°21'13" W, a distance of 151.20 feet, to a point for
corner.
68. S 62°05'13" E, a distance of 125.00 feet, to a point for
corner.
69. N 43°23'47" E, a distance of 420.00 feet, to a point for
corner.
70. N 18°02'13" W, a distance of 301.90 feet, to a point for
corner.
71. N 49°00'47" E, a distance of 501.30 feet, to a point for
corner.
72. N 29°48'47" E, a distance of 341.90 feet, to a point for
corner.
73. N 36°51'47" E, a distance of 106.72 feet, to a point for
the Northwest corner of said McGrady tract of land and the Southwest
corner of a called 50.000 acre tract of land as conveyed to Earnest
Paul Stroade and wife Katie Jo Stroade and Paula Sue Stroade and
recorded under M.C.C.F. No. 2013078842 of the O.P.R.O.R.P.
THENCE N 88°33'15" E, with the North line of said McGrady
tract of land and the South line of said 50.000 acre tract of land, a
distance of 3,380.63 feet, to a point for the Northeast corner of
said McGrady tract of land, the Southeast corner of said 50.000 acre
tract of land and being in the Western right-of-way line of said
Spring Branch Road.
THENCE S 03°39'13" E, with the East line of said McGrady tract
of land and the Western right-of-way line of said Spring Branch
Road, a distance of 4,892.19 feet, to the PLACE OF BEGINNING;
containing within said boundaries a calculated area of 819.0 of an
acre 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
7955A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7955A.0307 to read as
follows:
Sec. 7955A.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, 2023.
* * * * *