Texas 2025 - 89th Regular

Texas House Bill HB5670 Compare Versions

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1	1	By: Holt H.B. No. 5670
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the creation of the Montgomery County Municipal Utility
9	9	District No. 259; granting a limited power of eminent domain;
10	10	providing authority to issue bonds; providing authority to impose
11	11	fees, and taxes.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle F, Title 6, Special District Local Laws
14	14	Code, is amended by adding Chapter ____ to read as follows:
15	15	CHAPTER . MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 259
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. .001. DEFINITIONS. In this chapter:
18	18	(1) "Board" means the district's board of directors.
19	19	(2) "Commission" means the Texas Commission on
20	20	Environmental Quality.
21	21	(3) "Director" means a board member.
22	22	(4) "District" means the Montgomery County Municipal
23	23	Utility District No. 259.
24	24	Sec. .002. NATURE OF DISTRICT. The district is a
25	25	municipal utility district created under Section 59, Article XVI,
26	26	Texas Constitution.
27	27	Sec. .003. CONFIRMATION AND DIRECTORS' ELECTION
28	28	REQUIRED. The temporary directors shall hold an election to
29	29	confirm the creation of the district and to elect five permanent
30	30	directors as provided by Section 49.102, Water Code.
31	31	Sec. .004. CONSENT OF MUNICIPALITY REQUIRED. The
32	32	temporary directors may not hold an election under Section .003
33	33	until each municipality in whose corporate limits or
34	34	extraterritorial jurisdiction the district is located has
35	35	consented by ordinance or resolution to the creation of the
36	36	district and to the inclusion of land in the district.
37	37	Sec. .005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
38	38	The district is created to serve a public purpose and benefit.
39	39	(b) The district is created to accomplish the purposes of:
40	40	(1) a municipal utility district as provided by
41	41	general law and Section 59, Article XVI, Texas Constitution; and
42	42	(2) Section 52, Article III, Texas Constitution, that
43	43	relate to the construction, acquisition, improvement, operation,
44	44	or maintenance of macadamized, graveled, or paved roads, or
45	45	improvements, including storm drainage, in aid of those roads.
46	46	Sec. .006. INITIAL DISTRICT TERRITORY. (a) The
47	47	district is initially composed of the territory described by
48	48	Section 2 of the Act enacting this chapter.
49	49	(b) The boundaries and field notes contained in Section 2 of
50	50	the Act enacting this chapter form a closure. A mistake made in the
51	51	field notes or in copying the field notes in the legislative process
52	52	does not affect the district's:
53	53	(1) organization, existence, or validity;
54	54	(2) right to issue any type of bond for the purposes
55	55	for which the district is created or to pay the principal of and
56	56	interest on a bond;
57	57	(3) right to impose a tax; or
58	58	(4) legality or operation.
59	59	SUBCHAPTER B. BOARD OF DIRECTORS
60	60	Sec. .051. GOVERNING BODY; TERMS. (a) The district is
61	61	governed by a board of five elected directors.
62	62	(b) Except as provided by Section 7990.052, directors serve
63	63	staggered four-year terms.
64	64	Sec. .052. TEMPORARY DIRECTORS. (a) On or after
65	65	September 1, 2025, the owner or owners of a majority of the assessed
66	66	value of the real property in the district may submit a petition to
67	67	the commission requesting that the commission appoint as temporary
68	68	directors the five persons named in the petition. The commission
69	69	shall appoint as temporary directors the five persons named in the
70	70	petition.
71	71	(b) Temporary directors serve until the earlier of:
72	72	(1) the date permanent directors are elected under
73	73	Section 003; or
74	74	(2) September 1, 2029.
75	75	(c) If permanent directors have not been elected under
76	76	Section .003 and the terms of the temporary directors have expired,
77	77	successor temporary directors shall be appointed or reappointed as
78	78	provided by Subsection (d) to serve terms that expire on the earlier
79	79	of:
80	80	(1) the date permanent directors are elected under
81	81	Section .003; 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. .101. GENERAL POWERS AND DUTIES. The district has
93	93	the powers and duties necessary to accomplish the purposes for
94	94	which the district is created.
95	95	Sec. .102. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.
96	96	The district has the powers and duties provided by the general law
97	97	of this state, including Chapters 49 and 54, Water Code, applicable
98	98	to municipal utility districts created under Section 59, Article
99	99	XVI, Texas Constitution.
100	100	Sec. .103. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
101	101	OR RESOLUTION. The district shall comply with all applicable
102	102	requirements of any ordinance or resolution that is adopted under
103	103	Section 54.016 or 54.0165, Water Code, and that consents to the
104	104	creation of the district or to the inclusion of land in the
105	105	district.
106	106	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
107	107	Sec. .151. ELECTIONS REGARDING TAXES OR BONDS. (a) The
108	108	district may issue, without an election, bonds and other
109	109	obligations secured by:
110	110	(1) revenue other than ad valorem taxes; or
111	111	(2) contract payments described by Section .153.
112	112	(b) The district must hold an election in the manner
113	113	provided by Chapters 49 and 54, Water Code, to obtain voter approval
114	114	before the district may impose an ad valorem tax or issue bonds
115	115	payable from ad valorem taxes.
116	116	(c) The district may not issue bonds payable from ad valorem
117	117	taxes to finance a road project unless the issuance is approved by a
118	118	vote of a two-thirds majority of the district voters voting at an
119	119	election held for that purpose.
120	120	Sec. .152. OPERATION AND MAINTENANCE TAX. (a) If
121	121	authorized at an election held under Section .151, the district may
122	122	impose an operation and maintenance tax on taxable property in the
123	123	district in accordance with Section 49.107, Water Code.
124	124	(b) The board shall determine the tax rate. The rate may not
125	125	exceed the rate approved at the election.
126	126	Sec. .153. CONTRACT TAXES. (a) In accordance with
127	127	Section 49.108, Water Code, the district may impose a tax other than
128	128	an operation and maintenance tax and use the revenue derived from
129	129	the tax to make payments under a contract after the provisions of
130	130	the contract have been approved by a majority of the district voters
131	131	voting at an election held for that purpose.
132	132	(b) A contract approved by the district voters may contain a
133	133	provision stating that the contract may be modified or amended by
134	134	the board without further voter approval.
135	135	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
136	136	Sec. .201. AUTHORITY TO ISSUE BONDS AND OTHER
137	137	OBLIGATIONS. The district may issue bonds or other obligations
138	138	payable wholly or partly from ad valorem taxes, impact fees,
139	139	revenue, contract payments, grants, or other district money, or any
140	140	combination of those sources, to pay for any authorized district
141	141	purpose.
142	142	Sec. .202. TAXES FOR BONDS. At the time the district
143	143	issues bonds payable wholly or partly from ad valorem taxes, the
144	144	board shall provide for the annual imposition of a continuing
145	145	direct ad valorem tax, without limit as to rate or amount, while all
146	146	or part of the bonds are outstanding as required and in the manner
147	147	provided by Sections 54.601 and 54.602, Water Code.
148	148	Sec. .203. BONDS FOR ROAD PROJECTS. At the time of
149	149	issuance, the total principal amount of bonds or other obligations
150	150	issued or incurred to finance road projects and payable from ad
151	151	valorem taxes may not exceed one-fourth of the assessed value of the
152	152	real property in the district.
153	153	SECTION 2. Montgomery County Municipal Utility District
154	154	No. 259 initially includes all the territory contained in the
155	155	following area:
156	156	SECTION 3. (a) The legal notice of the intention to
157	157	introduce this Act, setting forth the general substance of this
158	158	Act, has been published as provided by law, and the notice and a
159	159	copy of this Act have been furnished to all persons, agencies,
160	160	officials, or entities to which they are required to be furnished
161	161	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
162	162	Government Code.
163	163	(b) The governor, one of the required recipients, has
164	164	submitted the notice and Act to the Texas Commission on
165	165	Environmental Quality.
166	166	(c) The Texas Commission on Environmental Quality has filed
167	167	its recommendations relating to this Act with the governor, the
168	168	lieutenant governor, and the speaker of the house of
169	169	representatives within the required time.
170	170	(d) All requirements of the constitution and laws of this
171	171	state and the rules and procedures of the legislature with respect
172	172	to the notice, introduction, and passage of this Act are fulfilled
173	173	and accomplished.
174	174	SECTION 4. (a) If this Act does not receive a two-thirds
175	175	vote of all the members elected to each house, Subchapter C,
176	176	Chapter____, Special District Local Laws Code, as added by Section
177	177	1 of this Act, is amended by adding Section ____.108 to read as
178	178	follows:
179	179	Sec. .108. NO EMINENT DOMAIN POWER. The district may not
180	180	exercise the power of eminent domain.
181	181	(b) This section is not intended to be an expression of a
182	182	legislative interpretation of the requirements of Section 17(c),
183	183	Article I, Texas Constitution.
184	184	SECTION 5. This Act takes effect September 1, 2025.