Texas 2025 89th Regular

Texas House Bill HB5654 House Committee Report / Bill

Filed 04/29/2025

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                    89R15853 ANG-F
 By: Metcalf H.B. No. 5654




 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the Montgomery County Municipal Utility
 District No. 263; 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 8016A to read as follows:
 CHAPTER 8016A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
 NO. 263
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 8016A.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. 263.
 Sec. 8016A.0102.  NATURE OF DISTRICT.  The district is a
 municipal utility district created under Section 59, Article XVI,
 Texas Constitution.
 Sec. 8016A.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. 8016A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
 temporary directors may not hold an election under Section
 8016A.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. 8016A.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. 8016A.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. 8016A.0201.  GOVERNING BODY; TERMS.  (a)  The district
 is governed by a board of five elected directors.
 (b)  Except as provided by Section 8016A.0202, directors
 serve staggered four-year terms.
 Sec. 8016A.0202.  TEMPORARY DIRECTORS.  (a)  On or after
 January 1, 2026, 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 8016A.0103; or
 (2)  January 1, 2030.
 (c)  If permanent directors have not been elected under
 Section 8016A.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 8016A.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. 8016A.0301.  GENERAL POWERS AND DUTIES.  The district
 has the powers and duties necessary to accomplish the purposes for
 which the district is created.
 Sec. 8016A.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. 8016A.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. 8016A.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. 8016A.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. 8016A.0306.  DIVISION OF DISTRICT. This chapter
 applies to any new district created by the division of the district
 under Section 49.316, Water Code, and a new district has all the
 powers and duties of the district.
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
 Sec. 8016A.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
 8016A.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. 8016A.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
 authorized at an election held under Section 8016A.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. 8016A.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. 8016A.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. 8016A.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. 8016A.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.  The Montgomery County Municipal Utility District
 No. 263 initially includes all the territory contained in the
 following area:
 BEING a 87.24 acre tract of land in the John Corner Survey,
 Abstract 8, Montgomery County, Texas, and being all of a called
 6.795 acre tract of land as recorded in Montgomery County Clerk's
 File No. 2016-115162, all of a called 2.538 acre tract as recorded
 under Montgomery County Clerk's File No. 2017-004689, all of a
 called 3.874 acre tract as recorded in Montgomery County Clerk's
 File No. 9810532, all of a called 51.052 acre tract as recorded in
 County Clerk's File No. 2016-053457, a portion of a called 7.03
 acre tract of land as recorded in County Clerk's File
 No. 2021-055312, and a portion of a called 26.11 acre tract of land
 as recorded in County Clerk's File No. 2020-099492. Said 87.24 acre
 tract being more particularly described as follows, with all
 bearings and grid coordinates referenced to NAD '83 Texas Central
 Zone
 COMMENCING at a 5/8" iron rod found { N: 10134219.32, E:
 3770074.82} on the southerly Right of Way of State Highway 105, for
 the northwesterly corner of the JW Jolene Subdivision as recorded
 in Cabinet Z Sheet 6077 of the County Map Records, also being the
 northeasterly corner of the said 26.11 acre tract
 THENCE S 09deg 54'13" W a distance of 807.15 feet along the
 westerly line of the JW Jolene Subdivision to a 5/8" iron rod found
 for the southwesterly corner of JW Jolene Subdivision and the POINT
 OF BEGINNING of the herein described tract;
 THENCE S 79deg 28'19" E a distance of 321.02 feet along the
 southerly line of the JW Jolene Subdivision, to a 5/8" iron rod
 found for the southeasterly corner of the said JW Jolene
 Subdivision, also being the southwesterly corner of a called 3.50
 acre tract of land as recorded in County Clerk's File No. 9356111;
 THENCE S 79deg 46'38" E a distance of 189.11 feet along the
 southerly line of the said 3.50 acre tract, to a 5/8" iron rod found
 on the westerly line of Roman Hills Subdivision, Section 1 as
 recorded in Cabinet A, Sheet 81 of the County Map Records;
 THENCE along the westerly line of Roman Hills Subdivision
 Section 1 the following:
 THENCE S 52deg 21'56" W a distance of 32.70 feet;
 THENCE S 21deg 37'14" W a distance of 369.55 feet;
 THENCE S 56deg 37'54" W a distance of 1220.44 feet;
 THENCE N 80deg 51'39" W a distance of 9.37 feet to the
 southeasterly corner of a called 11.06 acre tract of land as
 recorded in County Clerk's File No.  2020-142820
 THENCE N 09deg 54'13" E a distance of 794.76 feet along the
 easterly line of the said 11.06 acre tract to a 5/8" iron rod found
 for the northeasterly corner of the said 11.06 acre tract;
 THENCE N 80deg 05'47" W a distance of 600.00 feet to a 5/8"
 iron rod found for the northwesterly corner of the said 11.06 acre
 tract;
 THENCE S 09deg 54'12" W a distance of 812.79 feet along the
 westerly line of the said 11.06 to a 1/2" iron rod for the
 southwesterly corner of the said 11.06 acre tract, on the northerly
 line of a called 104.5 acre tract of land as recorded in County
 Clerk's File No.  2022-122722;
 THENCE N 80deg 07'54" W a distance of 1075.26 feet along the
 northerly line of the said 104.5 acre tract to a 5/8" iron rod found
 for the southwesterly corner of the said 51.052 acre tract;
 THENCE N 09deg 54'32" E a distance of 416.02 feet along the
 westerly line of the said 51.052 acre tract to the southeasterly
 corner of the said 3.874 acre tract;
 THENCE N 80deg 07'20" W a distance of 10.57 feet to a 60' Right
 of Way known as Club Drive and recorded in County Clerk's File
 No. 9219822;
 THENCE along the northeasterly line of Club Drive the
 following:
 THENCE N 09deg 52'40" E a distance of 204.93 feet;
 THENCE with a curve turning to the left with an arc length of
 1042.73', with a radius of 1082.90', with a chord bearing of N 17deg
 42'39" W, with a chord length of 1002.91';
 THENCE N 45deg 10'35" W a distance of 458.77 feet;
 THENCE with a curve turning to the right with an arc length of
 322.04', with a radius of 337.41', with a chord bearing of N 17deg
 51'07" W, with a chord length of 309.95' to the southerly Right of
 Way of State Highway No. 105 and being the northwesterly corner of
 the herein described tract;
 THENCE along the southerly line of State Highway No 105 the
 following:
 THENCE S 80deg 28'30" E a distance of 43.41 feet;
 THENCE S 80deg 27'13" E a distance of 649.95 feet;
 THENCE S 83deg 59'40" E a distance of 151.78 feet;
 THENCE S 83deg 46'05" E a distance of 150.43 feet;
 THENCE S 80deg 12'35" E a distance of 306.70 feet;
 THENCE S 69deg 41'13" E a distance of 216.36 feet;
 THENCE N 19deg 48'21" E a distance of 40.00 feet;
 THENCE S 80deg 07'48" E a distance of 550.86 feet to the
 northwesterly corner of a called 3.948 acre tract of land as
 recorded in County Clerk's File No.  2016-102606;
 THENCE S 09 deg 57'38" W a distance of 867.19 feet to the
 southwesterly corner of the said 3.948 acre tract;
 THENCE S 80deg 05'47" E a distance of 200.00 feet to the
 southeasterly corner of the said 3.948 acre tract;
 THENCE N 09deg 54'13" E a distance of 50.68 feet to a point
 along the easterly line of the said 3.948 acre tract;
 THENCE S 79deg 28'19" E a distance of 885.05 across the said
 7.03 acre tract and the said 26.11 acre tract, to the POINT OF
 BEGINNING, and containing 87.24 acres of land, more or less.
 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
 8016A, Special District Local Laws Code, as added by Section 1 of
 this Act, is amended by adding Section 8016A.0307 to read as
 follows:
 Sec. 8016A.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 January 1, 2026.