By: Creighton S.B. No. 2596
(In the Senate - Filed April 5, 2023; April 11, 2023, read
first time and referred to Committee on Local Government;
April 28, 2023, reported favorably by the following vote: Yeas 7,
Nays 0; April 28, 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. 236; 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 7968A to read as follows:
CHAPTER 7968A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
NO. 236
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7968A.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. 236.
Sec. 7968A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7968A.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. 7968A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7968A.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. 7968A.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. 7968A.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. 7968A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7968A.0202, directors
serve staggered four-year terms.
Sec. 7968A.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 7968A.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 7968A.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 7968A.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. 7968A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7968A.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. 7968A.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. 7968A.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. 7968A.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.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7968A.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
7968A.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. 7968A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7968A.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. 7968A.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. 7968A.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. 7968A.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. 7968A.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. 236 initially includes all the territory contained in the
following area:
A 231.1123 ACRE TRACT OF LAND IN THE S. TERRY SURVEY, ABSTRACT
NO. 564, MONTGOMERY COUNTY, TEXAS, BEING OUT OF AND A PART OF A
CALLED 1,702.2 ACRE TRACT CONVEYED TO DAYAKAR PUSKOOR, TRUSTEE OF
1992 GUNIGANTI CREDIT SHELTER TRUSTS, AKA THE GUNIGANTI FAMILY
TRUSTS AS RECORDED UNDER MONTGOMERY COUNTY CLERK'S FILE NUMBER
(M.C.C.F. NO.) 2019097078 (DESCRIBED UNDER M.C.C.F. NO.
2012127211), THE SAID 231.1123 ACRE TRACT BEING MORE PARTICULARLY
DESCRIBED BY METES AND BOUNDS AS FOLLOWS, (WITH BEARINGS BASED ON
THE TEXAS COORDINATE SYSTEM OF 1983, CENTRAL ZONE, AS DETERMINED BY
GPS MEASUREMENTS):
COMMENCING at a 3/4-inch iron rod found marking an angle in
the west line of said 1,702.2 acre tract, and the west line of a
called 150.00 acre tract, conveyed to TC LB Royal Pines, LP as
recorded under M.C.C.F. NO. 2021171601;
THENCE, North 03°35'35" West, along the west line of said
1,702.2 acre tract, and said 150.00 acre tract, passing at a
distance of 10.54 feet, a found 5/8" iron rod with cap stamped
"TERRA", passing at a distance of 874 feet, the approximate
centerline of White Oak Creek, being the northwest corner of the
said 150.00 acre tract, continuing along the west line of said
1,702.2 acre tract a total distance of 4,572.60 feet, to a 1/2" iron
rod found marking the northeast corner of Lot 6, Block 3, White Oak
Crossing Sec 4 (WOC4), map or plat thereof recorded under Cabinet
(Cab.) Z, Sheet (Sht.) 3640 Montgomery County Map Records
(M.C.M.R.), and an interior corner of said 1,702.2 acre tract, and
the herein described tract;
THENCE, South 87°08'26" West, along the north lines of said
WOC4, and White Oak Crossing Sec 3 (WOC3), map or plat thereof
recorded under Cab. Z, Sht. 2286 M.C.M.R., common with the
southerly line of said 1,702.2 acre tract and the herein described
tract, a distance of 2,132.46 feet, to a 5/8" iron rod with cap
stamped "HOVIS" found marking the northwest corner of Lot 19, Block
5, of said WOC3;
THENCE, North 07°21'12" West, departing said common line,
over and across said WCO3, A 19.14 acre tract conveyed to Prabhakar
R. Guniganti as recorded under M.C.C.F. NO. 2016114018, and said
1,702.2 acre tract, a distance of 4,946.84 feet, to the west line of
said 1,702.2 acre tract marking the southwest corner, and POINT OF
BEGINNING of the herein described tract;
THENCE, North 02°19'57" West, along the west line of said
1,702.2 acre tract, passing at a distance of 7.13 feet the southerly
Right-Of-Way (R.O.W.) line of State Highway 99 (A.K.A. Grand
Parkway), as described in the agreed final judgement recorded under
M.C.C.F. NO. 2022115684, passing at a distance of 407.22 feet, the
northerly R.O.W. line of said State Highway 99, continuing a total
distance of 2,694.43 feet, to the northwest corner of said 1,702.2
acre tract and the herein described tract;
THENCE, North 86°56'15" East, along the northerly line of said
1,702.2 acre tract, a distance of 2,313.87 feet, to an angle in the
north line of said 1,702.2 acre tract and the herein described
tract;
THENCE, North 88°18'37" East, along the northerly line of said
1,702.2 acre tract, a distance of 84.62 feet, to the northeast
corner of the herein described tract;
THENCE, over and across said 1,702.2 acre tract, the
following twenty nine (29) courses and distances:
South 01°34'11" East, a distance of 523.07 feet, to an angle
in the east line of the herein described tract;
South 88°20'05" East, a distance of 320.48 feet, to an angle
in the east line of the herein described tract;
South 72°57'20" East, a distance of 524.04 feet, to an angle
in the east line of the herein described tract;
South 55°07'09" East, a distance of 242.85 feet, to an angle
in the east line of the herein described tract;
South 26°44'17" East, a distance of 274.37 feet, to an angle
in the east line of the herein described tract;
South 34°39'23" East, a distance of 466.61 feet, to an angle
in the east line of the herein described tract;
South 29°43'18" East, a distance of 94.04 feet, to an angle in
the east line of the herein described tract;
South 03°45'41" West, a distance of 196.73 feet, to an angle
in the east line of the herein described tract;
South 27°52'41" East, a distance of 382.54 feet, to an angle
in the east line of the herein described tract;
South 29°14'09" East, a distance of 98.06 feet, to an angle in
the east line of the herein described tract;
South 18°42'01" West, a distance of 156.58 feet, to an angle
in the east line of the herein described tract;
South 45°05'06" West, a distance of 138.46 feet, to an angle
in the east line of the herein described tract;
South 72°00'22" West, a distance of 171.11 feet, to an angle
in the east line of the herein described tract;
South 64°09'37" West, a distance of 133.85 feet, to the
beginning of a curve to the right;
In a southwesterly direction, along said curve to the right,
having a radius of 3,014.66 feet, a central angle of 01°26'03"
(chord bears South 64°04'47" West, 75.45 feet) and an arc distance
of 75.45 feet, to the beginning of a reverse curve to the left;
In a southwesterly direction, along said reverse curve to the
left, having a radius of 100.00 feet, a central angle of 13°17'38"
(chord bears South 57°47'21" West, 23.15 feet) and an arc distance
of 23.20 feet, to the beginning of a reverse curve to the right;
In a southwesterly direction, along said reverse curve to the
right, having a radius of 500.00 feet, a central angle of 12°42'15"
(chord bears South 57°29'40" West, 110.64 feet) and an arc distance
of 110.86 feet, to the beginning of a reverse curve to the left;
In a southwesterly direction, along said reverse curve to the
left, having a radius of 100.00 feet, a central angle of 07°23'59"
(chord bears South 60°08'48" West, 12.91 feet) and an arc distance
of 12.92 feet, to the beginning of a reverse curve to the right;
In a southwesterly direction, along said reverse curve to the
right, having a radius of 100.00 feet, a central angle of 23°30'02"
(chord bears South 68°11'50" West, 40.73 feet) and an arc distance
of 41.02 feet, to the point of tangency;
South 79°56'51" West, a distance of 52.57 feet, to the
beginning of a curve to the right;
In a westerly direction, along said curve to the right,
having a radius of 100.00 feet, a central angle of 24°12'11" (chord
bears North 87°57'04" West, 41.93 feet) and an arc distance of 42.24
feet, to the point of compound curvature;
In a northwesterly direction, along said compound curve to
the right, having a radius of 500.00 feet, a central angle of
01°07'37" (chord bears North 75°17'10" West, 9.83 feet) and an arc
distance of 9.83 feet, to the point of reverse curvature;
In a southwesterly direction, along said reverse curve to the
left, having a radius of 100.00 feet, a central angle of 59°15'48"
(chord bears South 75°38'44" West, 98.88 feet) and an arc distance
of 103.43 feet, to the point of tangency;
South 46°00'50" West, a distance of 240.66 feet, to an angle
in the southerly line of the herein described tract;
North 47°45'22" West, a distance of 351.90 feet, to the
beginning of a curve to the right;
In a northwesterly direction, along said curve to the right,
having a radius of 1,250.00 feet, a central angle of 01°33'58"
(chord bears North 46°58'23" West, 34.17 feet) and an arc distance
of 34.17 feet, to the point of tangency;
South 53°50'57" West, a distance of 302.10 feet, to the
beginning of a curve to the left;
In a southwesterly direction, along said curve to the left,
having a radius of 2,000.00 feet, a central angle of 17°35'11"
(chord bears South 45°03'21" West, 611.48 feet) and an arc distance
of 613.89 feet, to the point of tangency;
South 36°15'45" West, a distance of 406.05 feet, to an angle
in the southerly line of the herein described tract;
THENCE, North 68°09'29" West, a distance of 1,868.05 feet, to
the POINT OF BEGINNING, and containing 231.1123 acres 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
7968A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7968A.0306 to read as
follows:
Sec. 7968A.0306. 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.
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