Bill Text: TX SB2597 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 237; 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: (Vetoed) 2023-06-16 - Vetoed by the Governor [SB2597 Detail]
Download: Texas-2023-SB2597-Enrolled.html
S.B. No. 2597 |
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relating to the creation of the Montgomery County Municipal Utility | ||
District No. 237; 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 7981A to read as follows: | ||
CHAPTER 7981A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. | ||
237 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7981A.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. 237. | ||
Sec. 7981A.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 7981A.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. 7981A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
7981A.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. 7981A.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. 7981A.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. 7981A.0201. GOVERNING BODY; TERMS. (a) The district | ||
is governed by a board of five elected directors. | ||
(b) Except as provided by Section 7981A.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 7981A.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 7981A.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 7981A.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 7981A.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. 7981A.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 7981A.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. 7981A.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. 7981A.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. 7981A.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. 7981A.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 | ||
7981A.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. 7981A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 7981A.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. 7981A.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. 7981A.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. 7981A.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. 7981A.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. Montgomery County Municipal Utility District | ||
No. 237 initially includes all the territory contained in the | ||
following area: | ||
A 387.6058 ACRE TRACT OF IN THE S. TERRY SURVEY, ABSTRACT NO. | ||
564, AND IN THE MARSHALL H. SHORT SURVEY, ABSTRACT NO. 535, | ||
MONTGOMERY COUNTY, BEING OUT OF AND A PART OF A CALLED 1,702.2 ACRE | ||
TRACT CONVEYED TO DAYAKAR PUSKOOR, TRUSTEE OF 1992 GUNIGANTI CREDIT | ||
SHELTER TRUSTS, AKA THE GUNIGANTI FAMILY TRUSTS AS RECORDED UNDER | ||
MONTGOMERY COUNTY CLERK’S FILE NUMBER (M.C.C.F. NO.) 2019097078 | ||
(DESCRIBED UNDER M.C.C.F. NO. 2012127211), THE SAID 387.6058 ACRE | ||
TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS | ||
FOLLOWS, (WITH BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF | ||
1983, CENTRAL ZONE, AS DETERMINED BY GPS MEASUREMENTS): | ||
COMMENCING at a 3/4-inch iron rod found marking an angle in | ||
the west line of said 1,702.2 acre tract, and the west line of a | ||
called 150.00 acre tract, conveyed to TC LB Royal Pines, LP as | ||
recorded under M.C.C.F. NO. 2021171601; | ||
THENCE, North 03°35’35” West, along the west line of said | ||
1,702.2 acre tract, and said 150.00 acre tract, passing at a | ||
distance of 10.54 feet, a found 5/8” iron rod with cap stamped “ | ||
TERRA”, passing at a distance of 874 feet, the approximate | ||
centerline of White Oak Creek, being the northwest corner of the | ||
said 150.00 acre tract, continuing along the west line of said | ||
1,702.2 acre tract a total distance of 2,433.36 feet, to the | ||
southwest corner and POINT OF BEGINNING of the herein described | ||
tract; | ||
THENCE, North 03°35’35” West, continuing along said line, a | ||
distance of 2,139.24 feet to a 1/2" iron rod found marking the | ||
northeast corner of Lot 6, Block 3, White Oak Crossing Sec 4 (WOC4), | ||
map or plat thereof recorded under Cabinet (Cab.) Z, Sheet (Sht.) | ||
3640 of the Montgomery County Map Records (M.C.M.R.), and an | ||
interior corner of said 1,702.2 acre tract, and the herein | ||
described tract; | ||
THENCE, South 87°08’26” West, along the north lines of said | ||
WOC4, and White Oak Crossing Sec 3 (WOC3), map or plat thereof | ||
recorded under Cab. Z, Sht. 2286 M.C.M.R., common with the | ||
southerly line of said 1,702.2 acre tract and the herein described | ||
tract, a distance of 2,132.46 feet, to a 5/8” iron rod with cap | ||
stamped “HOVIS” found marking the northwest corner of Lot 19, Block | ||
5, of said WOC3; | ||
THENCE, North 02°20’49” West, along the east line of said | ||
WOC3, common with the west line of said 1,702.2 acre tract, a | ||
distance of 2,206.27 feet, to the most easterly northeast corner of | ||
said WOC3, and the southeast corner of a called 19.14 acre tract | ||
conveyed to Prabhakar R. Guniganti as recorded under M.C.C.F. NO. | ||
2016114018, and an exterior corner of the herein described tract; | ||
THENCE, South 86°41’57” West, along the southerly line of | ||
said 19.14 acre tract, common with the northerly line of said WOC3, | ||
a distance of 432.45 feet, to the southwest corner of said 19.14 | ||
acre tract, and an exterior corner of the herein described tract; | ||
THENCE, North 02°19’57” West, along the west line of said | ||
19.14 acre tract, passing at a distance of 2,046.52 feet the | ||
northwest corner of said 19.14 acre tract, and an exterior corner of | ||
aforesaid 1,702.2 acre tract, continuing along the west line of | ||
said 1,702.2 acre tract a total distance of 2,515.79 feet, to the | ||
northwest corner of the herein described tract; | ||
THENCE, departing said line, and over and across said 1,702.2 | ||
acre tract the following seventeen (17) courses and distances: | ||
South 68°09’29” East, a distance of 4,491.85 feet, to | ||
the beginning of a curve to the right; | ||
In a southerly direction, along said curve to the right, | ||
having a radius of 2,050.00 feet, a central angle of 15°36’33” | ||
(chord bears South 07°15’23” West, 556.76 feet) and an arc distance | ||
of 558.49 feet, to the point of tangency; | ||
South 15°03’39” West, a distance of 882.15 feet, to the | ||
beginning of a curve to the left; | ||
In a southerly direction, along said curve to the left, | ||
having a radius of 1,950.00 feet, a central angle of 07°44’29” | ||
(chord bears South 11°11’25” West, 263.27 feet) and an arc distance | ||
of 263.47 feet, to the beginning of a compound curve to the left; | ||
In a southeasterly direction, along said compound curve | ||
to the left, having a radius of 25.00 feet, a central angle of | ||
91°48’57” (chord bears South 38°35’18” East, 35.91 feet) and an arc | ||
distance of 40.06 feet, to the point of tangency; | ||
South 06°10’01” West, a distance of 50.00 feet, to the | ||
beginning of a curve to the left; | ||
In a southwesterly direction, along said curve to the | ||
left, having a radius of 25.00 feet, a central angle of 91°08’39” | ||
(chord bears South 49°54’53” West, 35.71 feet) and an arc distance | ||
of 39.77 feet, to the point of compound curvature; | ||
In a southerly direction, along said compound curve to | ||
the left, having a radius of 1,950.00 feet, a central angle of | ||
23°31’46” (chord bears South 07°25’20” East, 795.19 feet) and an arc | ||
distance of 800.80 feet, to the point of tangency; | ||
South 19°11’13” East, a distance of 1,066.21 feet, to | ||
the beginning of a curve to the right; | ||
In a southerly direction, along said curve to the right, | ||
having a radius of 2,050.00 feet, a central angle of 07°32’44” | ||
(chord bears South 15°24’51” East, 269.78 feet) and an arc distance | ||
of 269.97 feet, to the point of reverse curvature; | ||
In a southeasterly direction, along said reverse curve | ||
to the left, having a radius of 25.00 feet, a central angle of | ||
88°28’52” (chord bears South 55°52’55” East, 34.88 feet) and an arc | ||
distance of 38.61 feet, to the point of tangency; | ||
South 10°07’21” East, a distance of 60.00 feet, to the | ||
beginning of a curve to the left; | ||
In a southwesterly direction, along said curve to the | ||
left, having a radius of 25.00 feet, a central angle of 88°28’52” | ||
(chord bears South 35°38’13” West, 34.88 feet) and an arc distance | ||
of 38.61 feet, to the point of reverse curvature; | ||
In a southerly direction, along said reverse curve to | ||
the right, having a radius of 2,050.00 feet, a central angle of | ||
14°38’26” (chord bears South 01°17’00” East, 522.40 feet) and an arc | ||
distance of 523.83 feet, to the point of tangency; | ||
South 06°02’13” West, a distance of 580.47 feet, to the | ||
southeast corner of the herein described tract; | ||
South 87°48’48” West, a distance of 101.04 feet, to the | ||
beginning of a curve to the left; | ||
In a northwesterly direction, along said curve to the | ||
left, having a radius of 25.00 feet, a central angle of 98°13’24” | ||
(chord bears North 43°04’30” West, 37.80 feet) and an arc distance | ||
of 42.86 feet, to the end of said curve; | ||
THENCE, South 87°48’48” West, a distance of 1,288.88 feet, to | ||
the POINT OF BEGINNING, and containing 387.6058 acres of land. | ||
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 | ||
7981A, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 7981A.0306 to read as | ||
follows: | ||
Sec. 7981A.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, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 2597 passed the Senate on | ||
May 17, 2023, by the following vote: Yeas 26, Nays 4, one present | ||
not voting. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 2597 passed the House on | ||
May 24, 2023, by the following vote: Yeas 105, Nays 33, one | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |