Bill Text: TX HB4679 | 2019-2020 | 86th Legislature | Enrolled


Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 163; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-06-10 - Effective immediately [HB4679 Detail]

Download: Texas-2019-HB4679-Enrolled.html
 
 
  H.B. No. 4679
 
 
 
 
AN ACT
  relating to the creation of the Montgomery County Municipal Utility
  District No. 163; 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 8091 to read as follows:
  CHAPTER 8091. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 163
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8091.0101.  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. 163.
         Sec. 8091.0102.  NATURE OF DISTRICT. The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8091.0103.  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. 8091.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  8091.0103 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.
         Sec. 8091.0105.  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. 8091.0106.  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. 8091.0201.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8091.0202, directors
  serve staggered four-year terms.
         Sec. 8091.0202.  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 8091.0103; 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 8091.0103 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 8091.0103; 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. 8091.0301.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8091.0302.  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. 8091.0303.  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. 8091.0304.  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. 8091.0305.  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. 8091.0306.  DIVISION OF DISTRICT. (a) The district may
  be divided into two or more new districts only if the district:
               (1)  has never issued any bonds; and
               (2)  is not imposing ad valorem taxes.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  A new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act enacting this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  8091.0103 to confirm the district's creation.
         (f)  An order dividing the district shall:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint temporary directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between the new districts.
         (g)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the commission and record the order in the real property
  records of each county in which the district is located.
         (h)  A new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 8091.0103.
         (i)  If the creation of the new district is confirmed, the
  new district shall provide the election date and results to the
  commission.
         (j)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
         (k)  Municipal consent to the creation of the district and to
  the inclusion of land in the district granted under Section
  8091.0104 acts as municipal consent to the creation of any new
  district created by the division of the district and to the
  inclusion of land in the new district.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8091.0401.  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 8091.0403.
         (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. 8091.0402.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized at an election held under Section 8091.0401, 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. 8091.0403.  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. 8091.0501.  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. 8091.0502.  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. 8091.0503.  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. 163 initially includes all the territory contained in the
  following area:
         A description of a 1229 acre tract of land, located in the
  Alfonzo Steel Survey, Abstract 477, the T. & N.O. Railroad Company,
  Section 4 Survey, Abstract 741, and the John Bricker Survey,
  Abstract 98, in Montgomery County, Texas; out of the 273.466 acre
  tract of land referenced as Tract III, Parcel 1, out of the 195. 961
  acre tract of land referenced as Tract 2, Parcel 2, out the 90.860
  acre tract referenced as Tract 2, Parcel 3, and out of that 648.855
  acre tract describes as Tract I as described in the deed recorded
  under Document Number 2018042236 of the Official Public Records of
  Montgomery County, Texas and more particularly described as
  follows:
         BEGINNING at the northeast corner of said Tract I, and the
  northeast corner of T. & N.O. Railroad Company, Section 4 Survey;
         THENCE South 00° 06' 00" West - 4845.80', along the east line
  of said Tract I, and the east line of said T. & N.O. Railroad
  Company, Section 4 Survey, to the southeast corner of said Tract I,
  and the southeast corner of said T. & N.O. Railroad Company, Section
  4 Survey;
         THENCE North 89° 57' 02" West - 5148.33', along the south line
  of said tract I and the south line of said T. & N.O. Railroad
  Company, Section 4 Survey, to the southwest corner of said Tract I,
  and the southwest corner of said T. & N.O. RR. CO. Section 4 Survey,
  in the east line of aforesaid Tract 2, Parcel 2, and the east line of
  aforesaid John Bricker Survey;
         THENCE South 30° 09' 50" East - 826.43', along the east line of
  aforesaid Tract 2, Parcel 2, and along the east line of said John
  Bricker Survey, to a southeast corner of said Tract 2, Parcel 2, and
  a southeast corner of the John Bricker Survey, lying in the north
  right-of-way line of State Highway 242;
         THENCE South 30° 34' 35" East - 220.69', continuing along said
  northeast line of said John Bricker Survey to a point for corner in
  the south right-of-way line of said State Highway 242, in the north
  line of said Tract 2, Parcel 3;
         THENCE South 30° 15' 03" East - 688.49', along the northeast
  line of said Tract 2, Parcel 3, and along the northeast line of said
  John Bricker Survey, to the east corner of said Tract 2, Parcel 3,
  and the southeast corner of said John Bricker Survey;
         THENCE South 59° 13' 35" West - 3060.96', along the southeast
  line of said Tract 2, Parcel 3 and the southeast line of said John
  Bricker Survey, to the intersection of said southeast lines, and
  the east right-of-way line of FM 1314 (Conroe Porter Road), being
  the south corner of said Tract 2, Parcel 3;
         THENCE North 24° 51' 16" West - 778.41', along said east
  right-of-way line, and the west line of Tract 2, Parcel 3 to a point
  for corner;
         THENCE, North 22° 10' 36" West - 597.39', continuing along
  said common line, to a point for corner;
         THENCE, North 19° 50' 32" West - 241.38', continuing along
  said common line, to at the south end of the southeasterly cutback
  corner, and the northwest corner of aforesaid Tract 2, Parcel 3, at
  the intersection of the aforesaid east right of way line of FM 1314
  (Conroe Porter Road) and the south line of State Highway 242;
         THENCE, North 16° 50' 19" West - 538.64', continuing along
  said east right-of-way line, to the north end of the northeasterly
  cutback corner of the said intersection, and the south corner of
  aforesaid Tract 2, Parcel 2, at the intersection of the aforesaid
  east right of way line of FM 1314 (Conroe Porter Road) and the south
  line of State Highway 242;
         THENCE, North 23° 14' 55" West - 200.33', continuing along
  said east right-of-way line, and the west line of aforesaid Tract 2,
  Parcel 2 to a point for corner;
         THENCE, North 13° 30' 38" West - 995.85', continuing along
  said common line, to a point for corner;
         THENCE, North 12° 01' 58" West - 2102.94', continuing along
  said common line, to a point for corner;
         THENCE North 12° 33' 22" West - 1.21', along the aforesaid
  east right of way line, and aforesaid west line of Tract 2, Parcel
  2, and the aforesaid west line of Tract III, Parcel 1, to the point
  of beginning of curve to the left;
         THENCE, 1212.26', continuing along said east right-of-way
  line, and the west line of said Tract III, Parcel 1 along said curve
  to the left, having a radius of 1959.86', a central angle of 35° 26'
  24", and a chord bearing and distance of North 30° 16' 34" West -
  1193.03', to the end of curve;
         THENCE North 48° 01' 22" West - 2935.99', continuing along
  said common line, to the intersection of said common line, and the
  north line of the Alfonzo Steel Survey, being the northwest corner
  of said Tract III, Parcel 1;
         THENCE, North 58° 58' 24" East - 3695.00', along said north
  line to the north corner of said Tract III, Parcel 1, being the most
  northerly west corner of the 178 acre tract of land described in the
  deed recorded under Volume 20, Page 612 of the Deed Records of
  Montgomery County, Texas;
         THENCE South 30° 57' 11" East - 3592.37', along the east line
  of said Tract III Parcel 1 and the southwest line of said 178 acre
  tract, to an interior corner of said 178 acre tract;
         THENCE South 59° 02' 57" West - 1387.45', along the south line
  of said Tract III, Parcel 1 and the north line of said 178 acre
  tract, to the most southerly west corner of said 178 acre tract;
         THENCE South 30° 43' 40" East - 411.55', along a southwest
  line of said 178 acre tract, to the south corner of said 178 acre
  tract, in the south line of aforesaid Alfonzo Steel Survey, common
  to a northwest line of aforesaid T. & N.O. Railroad Company, Section
  4 Survey;
         THENCE North 59° 36' 50" East - 3196.12', along said northwest
  line, the northwest line of Tract 2, Parcel 2, the northwest line of
  aforementioned Tract I, the southeast line of said Alfonzo Steel
  Survey, and the southeast line of said 178 acre tract, to an
  interior corner of said T. & N.O. Railroad Company, Section 4
  Survey, common to the east corner of said Alfonzo Steel Survey, and
  the east corner of said 178 acre tract;
         THENCE North 30° 28' 49" West - 375.00', along the northwest
  line of said Tract I, northwest line of said T. & N.O. Railroad
  Company, Section 4 Survey, the northeast line of said Alfonzo Steel
  Survey, and the northeast line of said 178 acre tract, to the most
  northerly northwest corner of said Tract I and T. & N.O. Railroad
  Company, Section 4 Survey;
         THENCE North 89° 56' 58" East - 4636.24, along the north line
  of said Tract I and T. & N.O. Railroad Company, Section 4 Survey, to
  the POINT OF BEGINNING and containing 1229 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
  8091, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 8091.0307 to read as follows:
         Sec. 8091.0307.  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 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, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4679 was passed by the House on May 3,
  2019, by the following vote:  Yeas 123, Nays 17, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 4679 was passed by the Senate on May
  22, 2019, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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