Texas 2023 - 88th Regular

Texas House Bill HB5345 Compare Versions

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1	1	H.B. No. 5345
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Montgomery County Municipal Utility
6	6	District No. 237; granting a limited power of eminent domain;
7	7	providing authority to issue bonds; providing authority to impose
8	8	assessments, fees, and taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	11	Code, is amended by adding Chapter 7981A to read as follows:
12	12	CHAPTER 7981A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.
13	13	237
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 7981A.0101. DEFINITIONS. In this chapter:
16	16	(1) "Board" means the district's board of directors.
17	17	(2) "Commission" means the Texas Commission on
18	18	Environmental Quality.
19	19	(3) "Director" means a board member.
20	20	(4) "District" means the Montgomery County Municipal
21	21	Utility District No. 237.
22	22	Sec. 7981A.0102. NATURE OF DISTRICT. The district is a
23	23	municipal utility district created under Section 59, Article XVI,
24	24	Texas Constitution.
25	25	Sec. 7981A.0103. CONFIRMATION AND DIRECTOR ELECTION
26	26	REQUIRED. The temporary directors shall hold an election to
27	27	confirm the creation of the district and to elect five permanent
28	28	directors as provided by Section 49.102, Water Code.
29	29	Sec. 7981A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
30	30	temporary directors may not hold an election under Section
31	31	7981A.0103 until each municipality in whose corporate limits or
32	32	extraterritorial jurisdiction the district is located has
33	33	consented by ordinance or resolution to the creation of the
34	34	district and to the inclusion of land in the district as required by
35	35	applicable law.
36	36	Sec. 7981A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
37	37	(a) The district is created to serve a public purpose and benefit.
38	38	(b) The district is created to accomplish the purposes of:
39	39	(1) a municipal utility district as provided by
40	40	general law and Section 59, Article XVI, Texas Constitution; and
41	41	(2) Section 52, Article III, Texas Constitution, that
42	42	relate to the construction, acquisition, improvement, operation,
43	43	or maintenance of macadamized, graveled, or paved roads, or
44	44	improvements, including storm drainage, in aid of those roads.
45	45	Sec. 7981A.0106. INITIAL DISTRICT TERRITORY. (a) The
46	46	district is initially composed of the territory described by
47	47	Section 2 of the Act enacting this chapter.
48	48	(b) The boundaries and field notes contained in Section 2 of
49	49	the Act enacting this chapter form a closure. A mistake made in the
50	50	field notes or in copying the field notes in the legislative process
51	51	does not affect the district's:
52	52	(1) organization, existence, or validity;
53	53	(2) right to issue any type of bond for the purposes
54	54	for which the district is created or to pay the principal of and
55	55	interest on a bond;
56	56	(3) right to impose a tax; or
57	57	(4) legality or operation.
58	58	SUBCHAPTER B. BOARD OF DIRECTORS
59	59	Sec. 7981A.0201. GOVERNING BODY; TERMS. (a) The district
60	60	is governed by a board of five elected directors.
61	61	(b) Except as provided by Section 7981A.0202, directors
62	62	serve staggered four-year terms.
63	63	Sec. 7981A.0202. TEMPORARY DIRECTORS. (a) On or after the
64	64	effective date of the Act enacting this chapter, the owner or owners
65	65	of a majority of the assessed value of the real property in the
66	66	district may submit a petition to the commission requesting that
67	67	the commission appoint as temporary directors the five persons
68	68	named in the petition. The commission shall appoint as temporary
69	69	directors the five persons named in the petition.
70	70	(b) Temporary directors serve until the earlier of:
71	71	(1) the date permanent directors are elected under
72	72	Section 7981A.0103; or
73	73	(2) the fourth anniversary of the effective date of
74	74	the Act enacting this chapter.
75	75	(c) If permanent directors have not been elected under
76	76	Section 7981A.0103 and the terms of the temporary directors have
77	77	expired, successor temporary directors shall be appointed or
78	78	reappointed as provided by Subsection (d) to serve terms that
79	79	expire on the earlier of:
80	80	(1) the date permanent directors are elected under
81	81	Section 7981A.0103; or
82	82	(2) the fourth anniversary of the date of the
83	83	appointment or reappointment.
84	84	(d) If Subsection (c) applies, the owner or owners of a
85	85	majority of the assessed value of the real property in the district
86	86	may submit a petition to the commission requesting that the
87	87	commission appoint as successor temporary directors the five
88	88	persons named in the petition. The commission shall appoint as
89	89	successor temporary directors the five persons named in the
90	90	petition.
91	91	SUBCHAPTER C. POWERS AND DUTIES
92	92	Sec. 7981A.0301. GENERAL POWERS AND DUTIES. The district
93	93	has the powers and duties necessary to accomplish the purposes for
94	94	which the district is created.
95	95	Sec. 7981A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
96	96	DUTIES. The district has the powers and duties provided by the
97	97	general law of this state, including Chapters 49 and 54, Water Code,
98	98	applicable to municipal utility districts created under Section 59,
99	99	Article XVI, Texas Constitution.
100	100	Sec. 7981A.0303. AUTHORITY FOR ROAD PROJECTS. Under
101	101	Section 52, Article III, Texas Constitution, the district may
102	102	design, acquire, construct, finance, issue bonds for, improve,
103	103	operate, maintain, and convey to this state, a county, or a
104	104	municipality for operation and maintenance macadamized, graveled,
105	105	or paved roads, or improvements, including storm drainage, in aid
106	106	of those roads.
107	107	Sec. 7981A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
108	108	road project must meet all applicable construction standards,
109	109	zoning and subdivision requirements, and regulations of each
110	110	municipality in whose corporate limits or extraterritorial
111	111	jurisdiction the road project is located.
112	112	(b) If a road project is not located in the corporate limits
113	113	or extraterritorial jurisdiction of a municipality, the road
114	114	project must meet all applicable construction standards,
115	115	subdivision requirements, and regulations of each county in which
116	116	the road project is located.
117	117	(c) If the state will maintain and operate the road, the
118	118	Texas Transportation Commission must approve the plans and
119	119	specifications of the road project.
120	120	Sec. 7981A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
121	121	ORDINANCE OR RESOLUTION. The district shall comply with all
122	122	applicable requirements of any ordinance or resolution that is
123	123	adopted under Section 54.016 or 54.0165, Water Code, and that
124	124	consents to the creation of the district or to the inclusion of land
125	125	in the district.
126	126	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
127	127	Sec. 7981A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
128	128	The district may issue, without an election, bonds and other
129	129	obligations secured by:
130	130	(1) revenue other than ad valorem taxes; or
131	131	(2) contract payments described by Section
132	132	7981A.0403.
133	133	(b) The district must hold an election in the manner
134	134	provided by Chapters 49 and 54, Water Code, to obtain voter approval
135	135	before the district may impose an ad valorem tax or issue bonds
136	136	payable from ad valorem taxes.
137	137	(c) The district may not issue bonds payable from ad valorem
138	138	taxes to finance a road project unless the issuance is approved by a
139	139	vote of a two-thirds majority of the district voters voting at an
140	140	election held for that purpose.
141	141	Sec. 7981A.0402. OPERATION AND MAINTENANCE TAX. (a) If
142	142	authorized at an election held under Section 7981A.0401, the
143	143	district may impose an operation and maintenance tax on taxable
144	144	property in the district in accordance with Section 49.107, Water
145	145	Code.
146	146	(b) The board shall determine the tax rate. The rate may not
147	147	exceed the rate approved at the election.
148	148	Sec. 7981A.0403. CONTRACT TAXES. (a) In accordance with
149	149	Section 49.108, Water Code, the district may impose a tax other than
150	150	an operation and maintenance tax and use the revenue derived from
151	151	the tax to make payments under a contract after the provisions of
152	152	the contract have been approved by a majority of the district voters
153	153	voting at an election held for that purpose.
154	154	(b) A contract approved by the district voters may contain a
155	155	provision stating that the contract may be modified or amended by
156	156	the board without further voter approval.
157	157	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
158	158	Sec. 7981A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
159	159	OBLIGATIONS. The district may issue bonds or other obligations
160	160	payable wholly or partly from ad valorem taxes, impact fees,
161	161	revenue, contract payments, grants, or other district money, or any
162	162	combination of those sources, to pay for any authorized district
163	163	purpose.
164	164	Sec. 7981A.0502. TAXES FOR BONDS. At the time the district
165	165	issues bonds payable wholly or partly from ad valorem taxes, the
166	166	board shall provide for the annual imposition of a continuing
167	167	direct ad valorem tax, without limit as to rate or amount, while all
168	168	or part of the bonds are outstanding as required and in the manner
169	169	provided by Sections 54.601 and 54.602, Water Code.
170	170	Sec. 7981A.0503. BONDS FOR ROAD PROJECTS. At the time of
171	171	issuance, the total principal amount of bonds or other obligations
172	172	issued or incurred to finance road projects and payable from ad
173	173	valorem taxes may not exceed one-fourth of the assessed value of the
174	174	real property in the district.
175	175	SECTION 2. Montgomery County Municipal Utility District
176	176	No. 237 initially includes all the territory contained in the
177	177	following area:
178	178	A 387.6058 ACRE TRACT OF IN THE S. TERRY SURVEY, ABSTRACT NO.
179	179	564, AND IN THE MARSHALL H. SHORT SURVEY, ABSTRACT NO. 535,
180	180	MONTGOMERY COUNTY, BEING OUT OF AND A PART OF A CALLED 1,702.2 ACRE
181	181	TRACT CONVEYED TO DAYAKAR PUSKOOR, TRUSTEE OF 1992 GUNIGANTI CREDIT
182	182	SHELTER TRUSTS, AKA THE GUNIGANTI FAMILY TRUSTS AS RECORDED UNDER
183	183	MONTGOMERY COUNTY CLERK’S FILE NUMBER (M.C.C.F. NO.) 2019097078
184	184	(DESCRIBED UNDER M.C.C.F. NO. 2012127211), THE SAID 387.6058 ACRE
185	185	TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
186	186	FOLLOWS, (WITH BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF
187	187	1983, CENTRAL ZONE, AS DETERMINED BY GPS MEASUREMENTS):
188	188	COMMENCING at a 3/4-inch iron rod found marking an angle in
189	189	the west line of said 1,702.2 acre tract, and the west line of a
190	190	called 150.00 acre tract, conveyed to TC LB Royal Pines, LP as
191	191	recorded under M.C.C.F. NO. 2021171601;
192	192	THENCE, North 03°35’35” West, along the west line of said
193	193	1,702.2 acre tract, and said 150.00 acre tract, passing at a
194	194	distance of 10.54 feet, a found 5/8” iron rod with cap stamped “
195	195	TERRA”, passing at a distance of 874 feet, the approximate
196	196	centerline of White Oak Creek, being the northwest corner of the
197	197	said 150.00 acre tract, continuing along the west line of said
198	198	1,702.2 acre tract a total distance of 2,433.36 feet, to the
199	199	southwest corner and POINT OF BEGINNING of the herein described
200	200	tract;
201	201	THENCE, North 03°35’35” West, continuing along said line, a
202	202	distance of 2,139.24 feet to a 1/2" iron rod found marking the
203	203	northeast corner of Lot 6, Block 3, White Oak Crossing Sec 4 (WOC4),
204	204	map or plat thereof recorded under Cabinet (Cab.) Z, Sheet (Sht.)
205	205	3640 of the Montgomery County Map Records (M.C.M.R.), and an
206	206	interior corner of said 1,702.2 acre tract, and the herein
207	207	described tract;
208	208	THENCE, South 87°08’26” West, along the north lines of said
209	209	WOC4, and White Oak Crossing Sec 3 (WOC3), map or plat thereof
210	210	recorded under Cab. Z, Sht. 2286 M.C.M.R., common with the
211	211	southerly line of said 1,702.2 acre tract and the herein described
212	212	tract, a distance of 2,132.46 feet, to a 5/8” iron rod with cap
213	213	stamped “HOVIS” found marking the northwest corner of Lot 19, Block
214	214	5, of said WOC3;
215	215	THENCE, North 02°20’49” West, along the east line of said
216	216	WOC3, common with the west line of said 1,702.2 acre tract, a
217	217	distance of 2,206.27 feet, to the most easterly northeast corner of
218	218	said WOC3, and the southeast corner of a called 19.14 acre tract
219	219	conveyed to Prabhakar R. Guniganti as recorded under M.C.C.F. NO.
220	220	2016114018, and an exterior corner of the herein described tract;
221	221	THENCE, South 86°41’57” West, along the southerly line of
222	222	said 19.14 acre tract, common with the northerly line of said WOC3,
223	223	a distance of 432.45 feet, to the southwest corner of said 19.14
224	224	acre tract, and an exterior corner of the herein described tract;
225	225	THENCE, North 02°19’57” West, along the west line of said
226	226	19.14 acre tract, passing at a distance of 2,046.52 feet the
227	227	northwest corner of said 19.14 acre tract, and an exterior corner of
228	228	aforesaid 1,702.2 acre tract, continuing along the west line of
229	229	said 1,702.2 acre tract a total distance of 2,515.79 feet, to the
230	230	northwest corner of the herein described tract;
231	231	THENCE, departing said line, and over and across said 1,702.2
232	232	acre tract the following seventeen (17) courses and distances:
233	233	South 68°09’29” East, a distance of 4,491.85 feet, to
234	234	the beginning of a curve to the right;
235	235	In a southerly direction, along said curve to the right,
236	236	having a radius of 2,050.00 feet, a central angle of 15°36’33”
237	237	(chord bears South 07°15’23” West, 556.76 feet) and an arc distance
238	238	of 558.49 feet, to the point of tangency;
239	239	South 15°03’39” West, a distance of 882.15 feet, to the
240	240	beginning of a curve to the left;
241	241	In a southerly direction, along said curve to the left,
242	242	having a radius of 1,950.00 feet, a central angle of 07°44’29”
243	243	(chord bears South 11°11’25” West, 263.27 feet) and an arc distance
244	244	of 263.47 feet, to the beginning of a compound curve to the left;
245	245	In a southeasterly direction, along said compound curve
246	246	to the left, having a radius of 25.00 feet, a central angle of
247	247	91°48’57” (chord bears South 38°35’18” East, 35.91 feet) and an arc
248	248	distance of 40.06 feet, to the point of tangency;
249	249	South 06°10’01” West, a distance of 50.00 feet, to the
250	250	beginning of a curve to the left;
251	251	In a southwesterly direction, along said curve to the
252	252	left, having a radius of 25.00 feet, a central angle of 91°08’39”
253	253	(chord bears South 49°54’53” West, 35.71 feet) and an arc distance
254	254	of 39.77 feet, to the point of compound curvature;
255	255	In a southerly direction, along said compound curve to
256	256	the left, having a radius of 1,950.00 feet, a central angle of
257	257	23°31’46” (chord bears South 07°25’20” East, 795.19 feet) and an arc
258	258	distance of 800.80 feet, to the point of tangency;
259	259	South 19°11’13” East, a distance of 1,066.21 feet, to
260	260	the beginning of a curve to the right;
261	261	In a southerly direction, along said curve to the right,
262	262	having a radius of 2,050.00 feet, a central angle of 07°32’44”
263	263	(chord bears South 15°24’51” East, 269.78 feet) and an arc distance
264	264	of 269.97 feet, to the point of reverse curvature;
265	265	In a southeasterly direction, along said reverse curve
266	266	to the left, having a radius of 25.00 feet, a central angle of
267	267	88°28’52” (chord bears South 55°52’55” East, 34.88 feet) and an arc
268	268	distance of 38.61 feet, to the point of tangency;
269	269	South 10°07’21” East, a distance of 60.00 feet, to the
270	270	beginning of a curve to the left;
271	271	In a southwesterly direction, along said curve to the
272	272	left, having a radius of 25.00 feet, a central angle of 88°28’52”
273	273	(chord bears South 35°38’13” West, 34.88 feet) and an arc distance
274	274	of 38.61 feet, to the point of reverse curvature;
275	275	In a southerly direction, along said reverse curve to
276	276	the right, having a radius of 2,050.00 feet, a central angle of
277	277	14°38’26” (chord bears South 01°17’00” East, 522.40 feet) and an arc
278	278	distance of 523.83 feet, to the point of tangency;
279	279	South 06°02’13” West, a distance of 580.47 feet, to the
280	280	southeast corner of the herein described tract;
281	281	South 87°48’48” West, a distance of 101.04 feet, to the
282	282	beginning of a curve to the left;
283	283	In a northwesterly direction, along said curve to the
284	284	left, having a radius of 25.00 feet, a central angle of 98°13’24”
285	285	(chord bears North 43°04’30” West, 37.80 feet) and an arc distance
286	286	of 42.86 feet, to the end of said curve;
287	287	THENCE, South 87°48’48” West, a distance of 1,288.88 feet, to
288	288	the POINT OF BEGINNING, and containing 387.6058 acres of land.
289	289	SECTION 3. (a) The legal notice of the intention to
290	290	introduce this Act, setting forth the general substance of this
291	291	Act, has been published as provided by law, and the notice and a
292	292	copy of this Act have been furnished to all persons, agencies,
293	293	officials, or entities to which they are required to be furnished
294	294	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
295	295	Government Code.
296	296	(b) The governor, one of the required recipients, has
297	297	submitted the notice and Act to the Texas Commission on
298	298	Environmental Quality.
299	299	(c) The Texas Commission on Environmental Quality has filed
300	300	its recommendations relating to this Act with the governor, the
301	301	lieutenant governor, and the speaker of the house of
302	302	representatives within the required time.
303	303	(d) All requirements of the constitution and laws of this
304	304	state and the rules and procedures of the legislature with respect
305	305	to the notice, introduction, and passage of this Act are fulfilled
306	306	and accomplished.
307	307	SECTION 4. (a) If this Act does not receive a two-thirds
308	308	vote of all the members elected to each house, Subchapter C, Chapter
309	309	7981A, Special District Local Laws Code, as added by Section 1 of
310	310	this Act, is amended by adding Section 7981A.0306 to read as
311	311	follows:
312	312	Sec. 7981A.0306. NO EMINENT DOMAIN POWER. The district may
313	313	not exercise the power of eminent domain.
314	314	(b) This section is not intended to be an expression of a
315	315	legislative interpretation of the requirements of Section 17(c),
316	316	Article I, Texas Constitution.
317	317	SECTION 5. This Act takes effect immediately if it receives
318	318	a vote of two-thirds of all the members elected to each house, as
319	319	provided by Section 39, Article III, Texas Constitution. If this
320	320	Act does not receive the vote necessary for immediate effect, this
321	321	Act takes effect September 1, 2023.
322	322	______________________________ ______________________________
323	323	President of the Senate Speaker of the House
324	324	I certify that H.B. No. 5345 was passed by the House on May 9,
325	325	2023, by the following vote: Yeas 107, Nays 35, 2 present, not
326	326	voting.
327	327	______________________________
328	328	Chief Clerk of the House
329	329	I certify that H.B. No. 5345 was passed by the Senate on May
330	330	24, 2023, by the following vote: Yeas 27, Nays 3, 1 present, not
331	331	voting.
332	332	______________________________
333	333	Secretary of the Senate
334	334	APPROVED: _____________________
335	335	Date
336	336	_____________________
337	337	Governor