Bill Text: TX HB4687 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 174; 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) 2019-06-14 - Effective immediately [HB4687 Detail]

Download: Texas-2019-HB4687-Enrolled.html

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H.B. No. 4687

AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 174; 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 8066 to read as follows:
CHAPTER 8066. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 174
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8066.0101. 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. 174.
Sec. 8066.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8066.0103. 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. 8066.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8066.0103 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. 8066.0105. 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. 8066.0106. 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. 8066.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 8066.0202, directors
serve staggered four-year terms.
Sec. 8066.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Lynnette Tujague;
(2) Andy Mersmann;
(3) Julia Russell;
(4) Monica Pena; and
(5) Madeline Berry.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8066.0103; 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 8066.0103 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 8066.0103; 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. 8066.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8066.0302. 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. 8066.0303. 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. 8066.0304. 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. 8066.0305. 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. 8066.0401. 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 8066.0403.
(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. 8066.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8066.0401, 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. 8066.0403. 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. 8066.0501. 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. 8066.0502. 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. 8066.0503. 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. 174 initially includes all the territory contained in the
following area:
Being a tract containing 148.435 acres of land situated in
the W.T. Dunlavy Survey, Abstract No. 168, the W. Hillhouse Survey,
Abstract No. 260 and the J. Pierpont Survey, Abstract No. 426, in
Montgomery County, Texas. Said 148.435 acres being a call 149.849
acre tract of land recorded in the name of Stacy Elizabeth Smith
Dudevszky under Montgomery County Clerk's File (M.C.C.F.)
No. 2005083316, LESS AND EXCEPT a call 1.420 acre tract of land
recorded in the name of State of Texas under M.C.C.F.
No. 2010040292. Said 148.435 acres being more particularly
described by metes and bounds as follows (bearings are referenced
to the Texas Coordinate System of 1983, Central Zone, based on GPS
observations):
BEGINNING at a TXDOT disc found at the southwest corner of the
herein described tract and northwest corner of said 1.420 acre
tract, same being on the north Right-of-Way line of F.M. 1774 (width
varies) and the east line of a call 12.15 acre tract of land
recorded in the name of James Lamar O'Neal in Volume 745, Page 775
of the Montgomery County Deed Records (M.C.D.R.);
THENCE, with said east line and the east line of a call 12.15
acre tract of land recorded in the name of Edgar Leon O'Neal in
Volume 745, Page 783 of the M.C.D.R., North 01 degrees 28 minutes 01
seconds West, a distance of 1,583.43 feet to a 1/2 inch square iron
rod found;
THENCE, with the upper south line of said Edgar Leon O'Neal
12.15 acre tract, North 87 degrees 53 minutes 08 seconds East, a
distance of 132.46 feet to an iron bolt found;
THENCE, with aforesaid east line, the east line of those two
(2) call 5.756 acre tracts of land recorded in the names of Leon
Charles O'Neal and Norman Leslie O'Neal under M.C.C.F.
No. 2003039490, and the east line of a call 2.2817 acre tract of
land recorded in the name of Alice Law Johnson under M.C.C.F.
No. 98102399, North 01 degrees 56 minutes 32 seconds West, a
distance of 1,355.78 feet to a 1 inch iron pipe (bent) found on the
common line between aforesaid Pierpont and Hillhouse Surveys and
being at the northeast corner of said 2.2817 acre tract;
THENCE, North 03 degrees 15 minutes 53 seconds West, a
distance of 454.86 feet to a 5/8 inch iron rod found at the
southwest corner of a call 7.505 acre tract of land recorded in the
name of Rondle L. Hartley and Pat A. Hartley under M.C.C.F.
No. 2000012801;
THENCE, with the south line of said 7.505 acre tract and a
call 7.500 acre tract of land recorded in the name of Edmond R.
Shanks and Amanda D. Shanks under M.C.C.F. No. 2000012802, North 87
degrees 16 minutes 27 seconds East, a distance of 1,315.32 feet to a
1/2 inch iron rod found at the southeast corner of said 7.500 acre
tract;
THENCE, with the east line of said 7.500 acre tract, North 03
degrees 14 minutes 39 seconds West, a distance of 496.57 feet to a
point at a fence corner post found at the northeast corner of said
7.500 acre tract, the southwest corner of a call 3.0445 acre tract
of land recorded in the name of Magnolia Castland, Inc. under
M.C.C.F. No. 99019783, and being at the centerline terminus of
Sandra Dee Lane, a 60 foot road easement;
THENCE, with the south line of said 3.0445 acre tract, North
87 degrees 14 minutes 28 seconds East, at a distance of 30 feet
passing the east line of said Sandra Dee Lane, and continuing for a
total distance of 437.37 feet to a 1/2 inch iron rod found at the
southeast corner of said 3.0445 acre tract and being on the west
line of a call 12.4782 acre tract of land recorded in the name of
Charles W. Tatom and Barbara D. Tatom under M.C.C.F. No. 9805419;
THENCE, with said west line and the west line of a call 3.0690
acre tract of land recorded in the name of Jessica Manwaring under
M.C.C.F. No. 2017101365, South 03 degrees 19 minutes 34 seconds
East, a distance of 496.83 feet to a 5/8 inch capped iron rod
stamped "GBI Partners" set;
THENCE, continuing with the west line of said 3.0690 acre
tract, South 03 degrees 06 minutes 29 seconds East, a distance of
457.74 feet to a 3/4 inch iron rod found at the northwest corner of a
call 17.845 acre tract of land recorded in the name of Diane M Daleo
under M.C.C.F. No. 2011008721 and being on the common line between
aforesaid Pierpont and Dunlavy Surveys;
THENCE, with the west line of said 17.845 acre tract and a
call 8.6122 acre tract of land (styled "Tract 2") recorded in the
name of DMJ Kachel, LLC under M.C.C.F. No. 2016105309, South 02
degrees 08 minutes 18 seconds East, a distance of 1,117.06 feet to a
point in Kachel Lake, said point being the common corner between
aforesaid 149.849 acre tract, 8.6122 acre tract, and a call 35.151
acre tract of land recorded in the name of Christopher H. Osborne
and Gail J. Osborne under M.C.C.F No. 2012070459;
THENCE, through and across said Kachel Lake and with a north
line of said 35.151 acre tract, South 75 degrees 12 minutes 08
seconds West, a distance of 181.21 feet to a point in said Kachel
Lake;
THENCE, with the west line of said 35.151 acre tract, South 02
degrees 28 minutes 35 seconds West, at a distance of 250.97 feet
passing a found 1 inch iron pipe for reference, and continuing for a
total distance of 1,125.43 feet to a 5/8 inch iron rod found at the
southwest corner of said 35.151 acre tract and the northwest corner
of Undesignated Reserve "A", Block 1 of Final Plat of Magnolia Road
Investments, a subdivision recorded in M.C.C.F. No. 2018013113
(Cabinet 00Z, Sheet 4961);
THENCE, with the west line of said Undesignated Reserve "A",
South 07 degrees 40 minutes 10 seconds East, a distance of 1,225.58
feet to a TXDOT disc found at the southwest corner of said
Undesignated Reserve "A", the northeast corner of aforesaid 1.420
acre tract of land and being on the aforesaid north R.O.W. line of
F.M. 1774, from which point a found TXDOT disc bears South 74
degrees 45 minutes 48 seconds East, a distance of 243.20 feet;
THENCE, with said north R.O.W. line and the north line of said
1.420 acre tract, the following two (2) courses:
1.) North 74 degrees 45 minutes 48 seconds West, a distance
of 733.80 feet to a TXDOT disc found;
2.) North 75 degrees 03 minutes 25 seconds West, at a
distance of 136.05 feet passing a found TXDOT disc for reference at
the common line between aforesaid Dunlavy and Hillhouse Surveys,
and continuing for a total distance of 1,107.06 feet to the POINT OF
BEGINNING and containing 148.435 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
8066, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8066.0306 to read as follows:
Sec. 8066.0306. 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, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4687 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. 4687 was passed by the Senate on May
22, 2019, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor