1 | 1 | | By: Creighton S.B. No. 2251 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | relating to the creation of the Montgomery County Municipal Utility |
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9 | 9 | | District No. 259; granting a limited power of eminent domain; |
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10 | 10 | | providing authority to issue bonds; providing authority to impose |
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11 | 11 | | fees, and taxes. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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14 | 14 | | Code, is amended by adding Chapter ______ to read as follows: |
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15 | 15 | | CHAPTER . MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. |
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16 | 16 | | 259 |
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17 | 17 | | SUBCHAPTER A. GENERAL PROVISIONS |
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18 | 18 | | Sec. .001. DEFINITIONS. In this chapter: |
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19 | 19 | | (1) "Board" means the district's board of directors. |
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20 | 20 | | (2) "Commission" means the Texas Commission on |
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21 | 21 | | Environmental Quality. |
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22 | 22 | | (3) "Director" means a board member. |
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23 | 23 | | (4) "District" means the Montgomery County Municipal |
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24 | 24 | | Utility District No. 259. |
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25 | 25 | | Sec. .002. NATURE OF DISTRICT. The district is a |
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26 | 26 | | municipal utility district created under Section 59, Article XVI, |
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27 | 27 | | Texas Constitution. |
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28 | 28 | | Sec. .003. CONFIRMATION AND DIRECTORS' ELECTION |
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29 | 29 | | REQUIRED. The temporary directors shall hold an election to |
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30 | 30 | | confirm the creation of the district and to elect five permanent |
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31 | 31 | | directors as provided by Section 49.102, Water Code. |
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32 | 32 | | Sec. .004. CONSENT OF MUNICIPALITY REQUIRED. The |
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33 | 33 | | temporary directors may not hold an election under Section .003 |
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34 | 34 | | until each municipality in whose corporate limits or |
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35 | 35 | | extraterritorial jurisdiction the district is located has |
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36 | 36 | | consented by ordinance or resolution to the creation of the |
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37 | 37 | | district and to the inclusion of land in the district. |
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38 | 38 | | Sec. .005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) |
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39 | 39 | | The district is created to serve a public purpose and benefit. |
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40 | 40 | | (b) The district is created to accomplish the purposes of: |
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41 | 41 | | (1) a municipal utility district as provided by |
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42 | 42 | | general law and Section 59, Article XVI, Texas Constitution; and |
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43 | 43 | | (2) Section 52, Article III, Texas Constitution, that |
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44 | 44 | | relate to the construction, acquisition, improvement, operation, |
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45 | 45 | | or maintenance of macadamized, graveled, or paved roads, or |
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46 | 46 | | improvements, including storm drainage, in aid of those roads. |
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47 | 47 | | Sec. .006. INITIAL DISTRICT TERRITORY. (a) The |
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48 | 48 | | district is initially composed of the territory described by |
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49 | 49 | | Section 2 of the Act enacting this chapter. |
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50 | 50 | | (b) The boundaries and field notes contained in Section 2 of |
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51 | 51 | | the Act enacting this chapter form a closure. A mistake made in the |
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52 | 52 | | field notes or in copying the field notes in the legislative process |
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53 | 53 | | does not affect the district's: |
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54 | 54 | | (1) organization, existence, or validity; |
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55 | 55 | | (2) right to issue any type of bond for the purposes |
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56 | 56 | | for which the district is created or to pay the principal of and |
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57 | 57 | | interest on a bond; |
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58 | 58 | | (3) right to impose a tax; or |
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59 | 59 | | (4) legality or operation. |
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60 | 60 | | SUBCHAPTER B. BOARD OF DIRECTORS |
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61 | 61 | | Sec. .051. GOVERNING BODY; TERMS. (a) The district is |
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62 | 62 | | governed by a board of five elected directors. |
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63 | 63 | | (b) Except as provided by Section 7990.052, directors serve |
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64 | 64 | | staggered four-year terms. |
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65 | 65 | | Sec. .052. TEMPORARY DIRECTORS. (a) On or after |
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66 | 66 | | September 1, 2025, the owner or owners of a majority of the assessed |
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67 | 67 | | value of the real property in the district may submit a petition to |
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68 | 68 | | the commission requesting that the commission appoint as temporary |
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69 | 69 | | directors the five persons named in the petition. The commission |
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70 | 70 | | shall appoint as temporary directors the five persons named in the |
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71 | 71 | | petition. |
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72 | 72 | | (b) Temporary directors serve until the earlier of: |
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73 | 73 | | (1) the date permanent directors are elected under |
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74 | 74 | | Section 003; or |
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75 | 75 | | (2) September 1, 2029. |
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76 | 76 | | (c) If permanent directors have not been elected under |
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77 | 77 | | Section .003 and the terms of the temporary directors have |
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78 | 78 | | expired, successor temporary directors shall be appointed or |
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79 | 79 | | reappointed as provided by Subsection (d) to serve terms that |
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80 | 80 | | expire on the earlier of: |
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81 | 81 | | (1) the date permanent directors are elected under |
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82 | 82 | | Section .003; or |
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83 | 83 | | (2) the fourth anniversary of the date of the |
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84 | 84 | | appointment or reappointment. |
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85 | 85 | | (d) If Subsection (c) applies, the owner or owners of a |
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86 | 86 | | majority of the assessed value of the real property in the district |
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87 | 87 | | may submit a petition to the commission requesting that the |
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88 | 88 | | commission appoint as successor temporary directors the five |
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89 | 89 | | persons named in the petition. The commission shall appoint as |
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90 | 90 | | successor temporary directors the five persons named in the |
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91 | 91 | | petition. |
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92 | 92 | | SUBCHAPTER C. POWERS AND DUTIES |
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93 | 93 | | Sec. .101. GENERAL POWERS AND DUTIES. The district has |
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94 | 94 | | the powers and duties necessary to accomplish the purposes for |
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95 | 95 | | which the district is created. |
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96 | 96 | | Sec. .102. MUNICIPAL UTILITY DISTRICT POWERS AND |
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97 | 97 | | DUTIES. The district has the powers and duties provided by the |
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98 | 98 | | general law of this state, including Chapters 49 and 54, Water Code, |
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99 | 99 | | applicable to municipal utility districts created under Section 59, |
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100 | 100 | | Article XVI, Texas Constitution. |
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101 | 101 | | Sec. .103. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE |
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102 | 102 | | OR RESOLUTION. The district shall comply with all applicable |
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103 | 103 | | requirements of any ordinance or resolution that is adopted under |
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104 | 104 | | Section 54.016 or 54.0165, Water Code, and that consents to the |
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105 | 105 | | creation of the district or to the inclusion of land in the |
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106 | 106 | | district. |
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107 | 107 | | SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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108 | 108 | | Sec. .151. ELECTIONS REGARDING TAXES OR BONDS. (a) The |
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109 | 109 | | district may issue, without an election, bonds and other |
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110 | 110 | | obligations secured by: |
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111 | 111 | | (1) revenue other than ad valorem taxes; or |
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112 | 112 | | (2) contract payments described by Section .153. |
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113 | 113 | | (b) The district must hold an election in the manner |
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114 | 114 | | provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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115 | 115 | | before the district may impose an ad valorem tax or issue bonds |
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116 | 116 | | payable from ad valorem taxes. |
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117 | 117 | | (c) The district may not issue bonds payable from ad valorem |
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118 | 118 | | taxes to finance a road project unless the issuance is approved by a |
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119 | 119 | | vote of a two-thirds majority of the district voters voting at an |
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120 | 120 | | election held for that purpose. |
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121 | 121 | | Sec. .152. OPERATION AND MAINTENANCE TAX. (a) If |
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122 | 122 | | authorized at an election held under Section .151, the district |
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123 | 123 | | may impose an operation and maintenance tax on taxable property in |
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124 | 124 | | the district in accordance with Section 49.107, Water Code. |
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125 | 125 | | (b) The board shall determine the tax rate. The rate may not |
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126 | 126 | | exceed the rate approved at the election. |
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127 | 127 | | Sec. .153. CONTRACT TAXES. (a) In accordance with |
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128 | 128 | | Section 49.108, Water Code, the district may impose a tax other than |
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129 | 129 | | an operation and maintenance tax and use the revenue derived from |
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130 | 130 | | the tax to make payments under a contract after the provisions of |
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131 | 131 | | the contract have been approved by a majority of the district voters |
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132 | 132 | | voting at an election held for that purpose. |
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133 | 133 | | (b) A contract approved by the district voters may contain a |
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134 | 134 | | provision stating that the contract may be modified or amended by |
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135 | 135 | | the board without further voter approval. |
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136 | 136 | | SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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137 | 137 | | Sec. .201. AUTHORITY TO ISSUE BONDS AND OTHER |
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138 | 138 | | OBLIGATIONS. The district may issue bonds or other obligations |
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139 | 139 | | payable wholly or partly from ad valorem taxes, impact fees, |
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140 | 140 | | revenue, contract payments, grants, or other district money, or any |
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141 | 141 | | combination of those sources, to pay for any authorized district |
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142 | 142 | | purpose. |
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143 | 143 | | Sec. .202. TAXES FOR BONDS. At the time the district |
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144 | 144 | | issues bonds payable wholly or partly from ad valorem taxes, the |
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145 | 145 | | board shall provide for the annual imposition of a continuing |
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146 | 146 | | direct ad valorem tax, without limit as to rate or amount, while all |
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147 | 147 | | or part of the bonds are outstanding as required and in the manner |
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148 | 148 | | provided by Sections 54.601 and 54.602, Water Code. |
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149 | 149 | | Sec. .203. BONDS FOR ROAD PROJECTS. At the time of |
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150 | 150 | | issuance, the total principal amount of bonds or other obligations |
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151 | 151 | | issued or incurred to finance road projects and payable from ad |
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152 | 152 | | valorem taxes may not exceed one-fourth of the assessed value of the |
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153 | 153 | | real property in the district. |
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154 | 154 | | SECTION 2. Montgomery County Municipal Utility District No. |
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155 | 155 | | 259 initially includes all the territory contained in the following |
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156 | 156 | | area: |
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157 | 157 | | SECTION 3. (a) The legal notice of the intention to |
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158 | 158 | | introduce this Act, setting forth the general substance of this |
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159 | 159 | | Act, has been published as provided by law, and the notice and a |
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160 | 160 | | copy of this Act have been furnished to all persons, agencies, |
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161 | 161 | | officials, or entities to which they are required to be furnished |
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162 | 162 | | under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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163 | 163 | | Government Code. |
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164 | 164 | | (b) The governor, one of the required recipients, has |
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165 | 165 | | submitted the notice and Act to the Texas Commission on |
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166 | 166 | | Environmental Quality. |
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167 | 167 | | (c) The Texas Commission on Environmental Quality has filed |
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168 | 168 | | its recommendations relating to this Act with the governor, the |
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169 | 169 | | lieutenant governor, and the speaker of the house of |
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170 | 170 | | representatives within the required time. |
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171 | 171 | | (d) All requirements of the constitution and laws of this |
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172 | 172 | | state and the rules and procedures of the legislature with respect |
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173 | 173 | | to the notice, introduction, and passage of this Act are fulfilled |
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174 | 174 | | and accomplished. |
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175 | 175 | | SECTION 4. (a) If this Act does not receive a two-thirds |
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176 | 176 | | vote of all the members elected to each house, Subchapter C, |
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177 | 177 | | Chapter____, Special District Local Laws Code, as added by Section |
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178 | 178 | | 1 of this Act, is amended by adding Section ____.108 to read as |
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179 | 179 | | follows: |
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180 | 180 | | Sec. .108. NO EMINENT DOMAIN POWER. The district may |
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181 | 181 | | not exercise the power of eminent domain. |
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182 | 182 | | (b) This section is not intended to be an expression of a |
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183 | 183 | | legislative interpretation of the requirements of Section 17(c), |
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184 | 184 | | Article I, Texas Constitution. |
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185 | 185 | | SECTION 5. This Act takes effect September 1, 2025. |
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