Texas 2023 - 88th Regular

Texas House Bill HB5374 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	H.B. No. 5374
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Montgomery County Municipal Utility
6	6	District No. 226; 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 7956A to read as follows:
12	12	CHAPTER 7956A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.
13	13	226
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 7956A.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. 226.
22	22	Sec. 7956A.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. 7956A.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. 7956A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
30	30	temporary directors may not hold an election under Section
31	31	7956A.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. 7956A.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. 7956A.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. 7956A.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 7956A.0202, directors
62	62	serve staggered four-year terms.
63	63	Sec. 7956A.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 7956A.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 7956A.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 7956A.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. 7956A.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. 7956A.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. 7956A.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. 7956A.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. 7956A.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	Sec. 7956A.0306. DIVISION OF DISTRICT. (a) The board, on
127	127	its own motion or on receipt of a petition signed by the owner or
128	128	owners of a majority of the assessed value of the real property in
129	129	the district, may adopt an order dividing the district.
130	130	(b) An order dividing a district may create one or more new
131	131	districts and may provide for the continuation of the district.
132	132	(c) An order dividing the district must:
133	133	(1) name any new district;
134	134	(2) include the metes and bounds description of the
135	135	territory of each of the districts;
136	136	(3) appoint temporary directors for any new district;
137	137	and
138	138	(4) provide for the division of assets and liabilities
139	139	between the districts.
140	140	(d) The board may adopt an order dividing the district
141	141	before or after the date the board holds an election to confirm the
142	142	district's creation.
143	143	(e) The district may be divided only if the district:
144	144	(1) has never issued any bonds; and
145	145	(2) is not imposing ad valorem taxes.
146	146	(f) A new district created by the division of the district
147	147	may not, at the time the new district is created, contain any land
148	148	outside the area described by Section 2 of the Act enacting this
149	149	chapter.
150	150	(g) On or before the 30th day after the date of adoption of
151	151	an order dividing the district, the district shall file the order
152	152	with the commission and record the order in the real property
153	153	records of each county in which the district is located.
154	154	(h) This chapter applies to any new district created by
155	155	division of the district, and a new district has all the powers and
156	156	duties of the district.
157	157	(i) A new district created by the division of the district
158	158	shall hold a confirmation and directors' election.
159	159	(j) If the creation of the new district is confirmed, the
160	160	new district shall provide the election date and results to the
161	161	commission.
162	162	(k) A new district created by the division of the district
163	163	must hold an election as required by this chapter to obtain voter
164	164	approval before the district may impose a maintenance tax or issue
165	165	bonds payable wholly or partly from ad valorem taxes.
166	166	(l) The district may continue to rely on confirmation,
167	167	directors', bond, or tax elections held prior to the division of the
168	168	district.
169	169	(m) Municipal consent to the creation of the district and to
170	170	the inclusion of land in the district acts as municipal consent to
171	171	the creation of any new district created by the division of the
172	172	district and to the inclusion of land in the new district.
173	173	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
174	174	Sec. 7956A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
175	175	The district may issue, without an election, bonds and other
176	176	obligations secured by:
177	177	(1) revenue other than ad valorem taxes; or
178	178	(2) contract payments described by Section
179	179	7956A.0403.
180	180	(b) The district must hold an election in the manner
181	181	provided by Chapters 49 and 54, Water Code, to obtain voter approval
182	182	before the district may impose an ad valorem tax or issue bonds
183	183	payable from ad valorem taxes.
184	184	(c) The district may not issue bonds payable from ad valorem
185	185	taxes to finance a road project unless the issuance is approved by a
186	186	vote of a two-thirds majority of the district voters voting at an
187	187	election held for that purpose.
188	188	Sec. 7956A.0402. OPERATION AND MAINTENANCE TAX. (a) If
189	189	authorized at an election held under Section 7956A.0401, the
190	190	district may impose an operation and maintenance tax on taxable
191	191	property in the district in accordance with Section 49.107, Water
192	192	Code.
193	193	(b) The board shall determine the tax rate. The rate may not
194	194	exceed the rate approved at the election.
195	195	Sec. 7956A.0403. CONTRACT TAXES. (a) In accordance with
196	196	Section 49.108, Water Code, the district may impose a tax other than
197	197	an operation and maintenance tax and use the revenue derived from
198	198	the tax to make payments under a contract after the provisions of
199	199	the contract have been approved by a majority of the district voters
200	200	voting at an election held for that purpose.
201	201	(b) A contract approved by the district voters may contain a
202	202	provision stating that the contract may be modified or amended by
203	203	the board without further voter approval.
204	204	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
205	205	Sec. 7956A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
206	206	OBLIGATIONS. The district may issue bonds or other obligations
207	207	payable wholly or partly from ad valorem taxes, impact fees,
208	208	revenue, contract payments, grants, or other district money, or any
209	209	combination of those sources, to pay for any authorized district
210	210	purpose.
211	211	Sec. 7956A.0502. TAXES FOR BONDS. At the time the district
212	212	issues bonds payable wholly or partly from ad valorem taxes, the
213	213	board shall provide for the annual imposition of a continuing
214	214	direct ad valorem tax, without limit as to rate or amount, while all
215	215	or part of the bonds are outstanding as required and in the manner
216	216	provided by Sections 54.601 and 54.602, Water Code.
217	217	Sec. 7956A.0503. BONDS FOR ROAD PROJECTS. At the time of
218	218	issuance, the total principal amount of bonds or other obligations
219	219	issued or incurred to finance road projects and payable from ad
220	220	valorem taxes may not exceed one-fourth of the assessed value of the
221	221	real property in the district.
222	222	SECTION 2. Montgomery County Municipal Utility District
223	223	No. 226 initially includes all the territory contained in the
224	224	following area:
225	225	Being 535.7 acres of land, more or less, located in the
226	226	Raleigh Rogers Survey, Abstract 33, and the Thomas Chatham Survey,
227	227	A-127, Montgomery County, Texas, out of land conveyed to Homeplace
228	228	Lands, LLC, as recorded under Clerk's File No. 2012125424 of the
229	229	Official Public Records of Real Property, Montgomery County, Texas,
230	230	(O.P.R.M.C.), being comprised if three (3) tracts as described
231	231	below; said 535.7 acres, more or less, being more particularly
232	232	described as follows, with all bearings referenced to the Texas
233	233	Coordinate System, Central Zone, NAD83 (NA2011) Epoch 2010.00:
234	234	TRACT 1: 0.7 Acre
235	235	Being 0.7 acre of land out of the Thomas Chatham Survey, A-127
236	236	Montgomery County, Texas:
237	237	BEGINNING at the intersection of a southerly line of land as
238	238	described in an instrument recorded under Clerk's File
239	239	No. 2012125424 of the Official Public Records of Montgomery County,
240	240	Texas (O.P.R.M.C.), and the easterly right-of-way line of FM 2854
241	241	(width varies);
242	242	THENCE NORTHWESTERLY approximately 196 feet, more or less,
243	243	with and adjoining the easterly right-of-way line of said FM 2854,
244	244	to the northwest corner of the herein described tract to, lying in
245	245	the common Extra Territorial Jurisdiction (ETJ) line of the City of
246	246	Conroe and the City of Montgomery, Texas;
247	247	THENCE NORTHEASTERLY approximately 201 feet, more or less,
248	248	with and adjoining a curve to the left, also being the common ETJ
249	249	line, to the northeast corner of the herein described tract, lying
250	250	in a westerly line of Hilltop Ranch Section 1, as recorded in
251	251	Cabinet "O", Sheet 138 of the Montgomery County Map Records
252	252	(M.C.M.R.);
253	253	THENCE SOUTHERLY approximately 234 feet, more or less, with
254	254	and adjoining said westerly line of Hilltop Ranch Section 1, to the
255	255	southeast corner of the herein described tract, lying in the
256	256	easterly line of FM 2854;
257	257	THENCE WESTERLY approximately 82 feet, more or less, with and
258	258	adjoining the easterly line of FM 2854, to the POINT OF BEGINNING,
259	259	and containing approximately 0.7 acre of land. This document was
260	260	prepared under 22 Texas Administrative Code §138.95, does not
261	261	reflect the results of an on the ground survey, and is not to be used
262	262	to convey or establish interests in real property except those
263	263	rights and interests implied or established by the creation or
264	264	reconfiguration of the boundary of the political subdivision for
265	265	which it was prepared.
266	266	TRACT 2: 438 Acres
267	267	Being 438 acres of land out of the Thomas Chatham Survey,
268	268	A-127, and the Raleigh Rogers Survey, A-33, Montgomery County,
269	269	Texas:
270	270	BEGINNING at the southeast corner of a 17.0 acre tract, as
271	271	recorded under Clerk's File No. 8805975 of the Official Public
272	272	Records of Real Property Montgomery County, Texas
273	273	(O.P.R.R.P.M.C.), also being an easterly corner of land conveyed to
274	274	Homeplace Lands, LLC, as recorded under Clerk's File No. 2012125424
275	275	of the Official Public Records of Montgomery County, Texas
276	276	(O.P.R.M.C.), lying in the westerly right-of-way line of F.M. 2854
277	277	(width varies);
278	278	THENCE SOUTHEASTERLY approximately 910 feet, more or less,
279	279	with and adjoining said southwesterly right-of-way line of F.M.
280	280	2854, to an easterly corner of the herein described tract, also
281	281	being the northeast corner of Yesterday's Crossing, Section 1, as
282	282	recorded in Cabinet "Z", Sheet 257 of the Montgomery County Map
283	283	Records (M.C.M.R.);
284	284	THENCE WESTERLY approximately 1,057 feet, more or less, with
285	285	and adjoining the north line of said Yesterday's Crossing, Section
286	286	1, to an easterly interior corner of the herein described tract,
287	287	also being the northwest corner of said Yesterday's Crossing,
288	288	Section 1;
289	289	THENCE SOUTHERLY approximately 3,387 feet, more or less, with
290	290	and adjoining the westerly line of said Yesterday's Crossing,
291	291	Section 1, and the westerly line of a tract of land conveyed to
292	292	Douglas B. and Carolyn Lee as recorded under Clerk's File
293	293	No. 2014125321 of the O.P.R.M.C., to the southwest corner of said
294	294	Douglas B. and Carolyn Lee tract, also being the northwest corner of
295	295	a 216.521 acre tract, and the southeast corner of the herein
296	296	described tract;
297	297	THENCE SOUTH 86 degrees 42 minutes 33 seconds WEST,
298	298	approximately 1,908 feet, more or less, to the southwest corner of
299	299	the herein described tract, lying in the northeasterly right-of-way
300	300	line of the BN & SF Railroad;
301	301	THENCE NORTHWESTERLY approximately 3,799 feet, more or less,
302	302	with and adjoining said northeasterly right-of-way line of the BN &
303	303	SF Railroad to intersection of the common Extra Territorial
304	304	Jurisdiction line of the City of Conroe and City of Montgomery,
305	305	Texas;
306	306	THENCE NORTHERLY approximately 2,555 feet, more or less, with
307	307	and adjoining said common ETJ line, to a corner in the common ETJ
308	308	line;
309	309	THENCE EASTERLY approximately 2,377 feet, more or less, with
310	310	and adjoining said common ETJ line to a west line of a 22.178 acre
311	311	tract, as recorded under Clerk's File No. 2018119879 of the
312	312	O.P.R.M.C.;
313	313	THENCE SOUTHERLY approximately 76 feet, more or less, with
314	314	and adjoining said westerly line of the 22.178 acre tract, to a
315	315	northerly corner of the herein described tract;
316	316	THENCE EASTERLY approximately 1,078 feet, more or less, with
317	317	and adjoining the southerly line of said 22.178 acre tract to the
318	318	northeast corner of the herein described tract, also being the
319	319	northwest corner of a 5.45 acre tract as described under Clerk's
320	320	File No. 8805975 of the O.P.R.R.P.M.C.;
321	321	THENCE SOUTHERLY approximately 1,170 feet, more or less, with
322	322	and adjoining the westerly line of said 5.45 acre tract, and the
323	323	westerly line of said 17.0 acre tract, to the southwest corner of
324	324	said 17.0 acre tract, and easterly interior corner of the herein
325	325	described tract;
326	326	THENCE EASTERLY approximately 1,424 feet, more or less, with
327	327	and adjoining the southerly line of said 17.0 acre tract, to the
328	328	POINT OF BEGINNING, and containing approximately 438 acres of land.
329	329	This document was prepared under 22 Texas Administrative Code §
330	330	138.95, does not reflect the results of an on the ground survey,
331	331	and is not to be used to convey or establish interests in real
332	332	property except those rights and interests implied or established
333	333	by the creation or reconfiguration of the boundary of the political
334	334	subdivision for which it was prepared.
335	335	TRACT 3: 97 Acres
336	336	Being 97 acres of land out of the Raleigh Rogers Survey, A-33,
337	337	Montgomery County, Texas:
338	338	BEGINNING at the most easterly southeast corner of the herein
339	339	described tract, lying in the southwesterly right-of-way line of
340	340	the BN & SF Railroad, from which the northwest corner of a 216.521
341	341	acre tract, as defined under Clerk's File No. 2012125424 of the
342	342	O.P.R.M.C., also being the southwest corner of land conveyed to
343	343	Douglas B. & Carolyn Lee as recorded under Clerk's File
344	344	No. 2014125321 of the O.P.R.M.C., bears NORTH 86 degrees 42 minutes
345	345	33 seconds EAST, 2,038.61 feet;
346	346	THENCE WESTERLY approximately 1,425 feet, more or less, to a
347	347	southerly interior corner of the herein described tract;
348	348	THENCE SOUTHERLY approximately 1,071 feet, more or less, to a
349	349	southerly corner of the herein described tract, also being a
350	350	northerly corner of land as described in a warranty deed to Earle T.
351	351	McCants and Edward W. McCants as recorded under Clerk's File
352	352	No. 99002183 of the Official Public Records of Real Property
353	353	Montgomery County, Texas (O.P.R.R.P.M.C.);
354	354	THENCE WESTERLY approximately 940 feet, more or less, with
355	355	and adjoining the northerly line of said Earle T. McCants and Edward
356	356	W. McCants tract, to the southwest corner of the herein described
357	357	tract, lying in the common Extra Territorial Jurisdiction of the
358	358	City of Conroe and the City of Montgomery, Texas;
359	359	THENCE NORTHERLY approximately 3,811 feet, more or less, to
360	360	the north corner of the herein described tract, lying in said
361	361	southwesterly right-of-way line of the BN & SF Railroad:
362	362	THENCE SOUTHEASTERLY approximately 3,599 feet, more or less,
363	363	with and adjoining said southwesterly line of the BN & SF Railroad
364	364	right-of-way, to the POINT OF BEGINNING, and containing
365	365	approximately 97 acres of land. This document was prepared under 22
366	366	Texas Administrative Code §138.95, does not reflect the results of
367	367	an on the ground survey, and is not to be used to convey or establish
368	368	interests in real property except those rights and interests
369	369	implied or established by the creation or reconfiguration of the
370	370	boundary of the political subdivision for which it was prepared.
371	371	SECTION 3. (a) The legal notice of the intention to
372	372	introduce this Act, setting forth the general substance of this
373	373	Act, has been published as provided by law, and the notice and a
374	374	copy of this Act have been furnished to all persons, agencies,
375	375	officials, or entities to which they are required to be furnished
376	376	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
377	377	Government Code.
378	378	(b) The governor, one of the required recipients, has
379	379	submitted the notice and Act to the Texas Commission on
380	380	Environmental Quality.
381	381	(c) The Texas Commission on Environmental Quality has filed
382	382	its recommendations relating to this Act with the governor, the
383	383	lieutenant governor, and the speaker of the house of
384	384	representatives within the required time.
385	385	(d) All requirements of the constitution and laws of this
386	386	state and the rules and procedures of the legislature with respect
387	387	to the notice, introduction, and passage of this Act are fulfilled
388	388	and accomplished.
389	389	SECTION 4. (a) If this Act does not receive a two-thirds
390	390	vote of all the members elected to each house, Subchapter C, Chapter
391	391	7956A, Special District Local Laws Code, as added by Section 1 of
392	392	this Act, is amended by adding Section 7956A.0307 to read as
393	393	follows:
394	394	Sec. 7956A.0307. NO EMINENT DOMAIN POWER. The district may
395	395	not exercise the power of eminent domain.
396	396	(b) This section is not intended to be an expression of a
397	397	legislative interpretation of the requirements of Section 17(c),
398	398	Article I, Texas Constitution.
399	399	SECTION 5. This Act takes effect immediately if it receives
400	400	a vote of two-thirds of all the members elected to each house, as
401	401	provided by Section 39, Article III, Texas Constitution. If this
402	402	Act does not receive the vote necessary for immediate effect, this
403	403	Act takes effect September 1, 2023.
404	404	______________________________ ______________________________
405	405	President of the Senate Speaker of the House
406	406	I certify that H.B. No. 5374 was passed by the House on May 9,
407	407	2023, by the following vote: Yeas 110, Nays 32, 2 present, not
408	408	voting.
409	409	______________________________
410	410	Chief Clerk of the House
411	411	I certify that H.B. No. 5374 was passed by the Senate on May
412	412	21, 2023, by the following vote: Yeas 27, Nays 4.
413	413	______________________________
414	414	Secretary of the Senate
415	415	APPROVED: _____________________
416	416	Date
417	417	_____________________
418	418	Governor