84R20047 GRM-F
	By: Keough	H.B. No. 2478
	Substitute the following for H.B. No. 2478:
	By:  Fallon	C.S.H.B. No. 2478

	A BILL TO BE ENTITLED
	relating to the creation of the Montgomery County Municipal Utility
	District No. 144; 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 7953 to read as follows:
	CHAPTER 7953. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 144
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 7953.001.  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. 144.
	Sec. 7953.002.  NATURE OF DISTRICT. The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 7953.003.  CONFIRMATION AND DIRECTORS' 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. 7953.004.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section 7953.003
	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. 7953.005.  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. 7953.006.  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.
	Sec. 7953.007.  ELIGIBILITY FOR INCLUSION IN TAX INCREMENT
	REINVESTMENT ZONE. (a) The district is eligible to be included in
	a tax increment reinvestment zone created under Chapter 311, Tax
	Code.
	(b)  If the City of Conroe has created or creates a tax
	increment reinvestment zone described by Subsection (a) that
	includes all or part of the territory of the district, the City of
	Conroe and the board of directors of the zone or a developer of
	property within the tax increment reinvestment zone that receives
	or will receive money from the tax increment fund, by contract with
	the district, may grant money to the district from the tax increment
	fund to be used for a permissible purpose of the district,
	including:
	(1)  the right to pledge the money as security for a
	bond or other obligation issued by the district; and
	(2)  any permissible purpose of a corporation under
	Section 380.002(b), Local Government Code.
	SUBCHAPTER B.  BOARD OF DIRECTORS
	Sec. 7953.051.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five elected directors.
	(b)  Except as provided by Section 7953.052, directors serve
	staggered four-year terms.
	Sec. 7953.052.  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 7953.003; 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 7953.003 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 7953.003; 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. 7953.101.  GENERAL POWERS AND DUTIES.  The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 7953.102.  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. 7953.103.  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. 7953.104.  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. 7953.105.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
	OR RESOLUTION.  (a)  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.
	(b)  In addition to all the rights and remedies provided by
	other law, if the district violates the terms of an ordinance or
	resolution described by Subsection (a), the municipality is
	entitled to injunctive relief or a writ of mandamus issued by a
	court requiring the district and the district's officials to
	observe and comply with the terms of the ordinance or resolution.
	Sec. 7953.106.  EFFECT OF ANNEXATION BY CITY OF CONROE. (a)
	The City of Conroe may annex all or part of the district into its
	corporate limits without annexing the entire district under the
	terms of a development agreement between the City of Conroe and the
	owners of the land in the district that is covered by the
	development agreement. If a development agreement is not executed
	or the agreement has expired, nothing in this chapter limits the
	right of the City of Conroe to annex the district.
	(b)  If the City of Conroe annexes all or part of the district
	into its corporate limits:
	(1)  the district is not dissolved;
	(2)  the ability of the district to issue bonds is not
	impaired or precluded; and
	(3)  unless otherwise approved by the board and the
	governing body of the City of Conroe, the city:
	(A)  may not take over the property or other
	assets of the district;
	(B)  may not assume any debts, liabilities, or
	other obligations of the district;
	(C)  is not obligated to perform any functions of
	the district; and
	(D)  is not obligated to pay a landowner or
	developer for expenses incurred by the landowner or developer in
	connection with the district that would otherwise be eligible for
	reimbursement from the proceeds of bonds issued by the district.
	(c)  Notwithstanding Section 54.016(f)(2), Water Code, an
	allocation agreement between the City of Conroe and the district
	that provides for the allocation of the taxes or revenues of the
	district and the city following the date of inclusion of all the
	district's territory in the corporate limits of the city may
	provide that the total annual ad valorem taxes collected by the city
	and the district from taxable property in the district may exceed
	the city's ad valorem tax on that property.
	Sec. 7953.107.  LIMITATION ON USE OF EMINENT DOMAIN.  The
	district may not exercise the power of eminent domain outside the
	district without the written consent of the City of Conroe.
	SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
	Sec. 7953.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
	district may issue, without an election, bonds and other
	obligations secured by revenue other than ad valorem taxes.
	(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. 7953.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 7953.151, 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.
	SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
	Sec. 7953.201.  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, tax increment payments, grants, or
	other district money, or any combination of those sources, to pay
	for any authorized district purpose.
	Sec. 7953.202.  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. 7953.203.  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. 144 initially includes all the territory contained in the
	following area:
	BEING a 186.839 acre tract of land (8,138,702 square feet) located
	in the J. Hodge Survey, A- 19, Montgomery County, Texas, same said
	tract being a portion of a called 553.735 acre partition tract
	conveyed to Mallie Duff Hunt, et. al. and described as Exhibit "A"
	in a Partition Deed recorded in Clerk's File Number 2003-124388 of
	the Official Public Records of Real Property of Montgomery County,
	Texas (OPRRPMC). Said 186.839 acre tract being more fully described
	as follows, all bearings based on the Texas Coordinate System,
	Central Zone (4203), NAD-83 (NA 2011) epoch 2010.00:
	BEGINNING: At a found 3/4 inch iron pipe at the southeast corner of
	said 553.735 acre tract of land, same being an interior corner of
	Carriage Hills Section One Subdivision, recorded in Cabinet B,
	Sheet 127 B of the Plat Records of Montgomery County, Texas (MCPR),
	and on the common survey line of the C. Dugart Survey, A-170, and
	the J. Hodge Survey, A-19;
	THENCE:S 85°10'04" W, along and with the south line of said 553.735
	acre tract, the above mentioned common survey line, at 1,059.15
	feet, the northwest corner of the aforementioned C. Dugart Survey
	A-170, and the northeast corner of the D. Thomas Survey, A-550, from
	which a found 1/2 inch iron rod bears N 2°36'29" W, a distance of
	8.95 feet, for the apparent lower northwest corner of said Carriage
	Hills Section One Subdivision, and the apparent northeast corner of
	Red Oak Ranch Section One, recorded in Cabinet I, Sheet 200-201 of
	the Map Records of Montgomery County, Texas (MCMR), and continuing
	along and with the south line of said 553.735 acre tract, the common
	survey line of said J. Hodge Survey, A-19 and the D. Thomas Survey,
	A-550, in all a total distance of 1,571.14 feet to a found 5/8 inch
	iron rod which bears S 02°59'59" E, a distance of 0.16 feet from the
	southwest corner of said 553.735 acre tract, same being the
	southeast corner of a 123.052 acre tract conveyed to
	Lawrence-Hunt-Thomas Interests, LTD. and described in a Partition
	Deed as Exhibit "C", recorded in Clerk's File Number 2003-124388
	(OPRRPMC).
	THENCE:N 02°59'59" W, departing the south line of said 553.735 acre
	tract, the common survey line, over and across said 553.735 acre
	tract, at 10.26 feet passing the apparent north line of said Red Oak
	Ranch Section One, in all a total distance of 4,504.60 feet to a
	found 1/2 inch iron rod in the south line of a 60-foot wide road
	easement recorded in Clerk's File Numbers 2003-124388 and
	2003-131296 (OPRRPMC).
	THENCE:N 43°19'31" E, along and with the south line of said 60-foot
	wide road easement a distance of 2,137.34 feet to a found 1/2 inch
	iron rod on the west line of Carriage Hills Subdivision, Sections
	Two and Three, recorded in Cabinet B, Page 191 B (MCPR).
	THENCE:S 03°14'10" E, along and with the west line of said Carriage
	Hills Subdivision, Sections One, Two and Three, a distance of
	5,930.39 feet to the POINT OF BEGINNING, and containing 186.839
	acres of land, which includes 0.221 of an acre of land between the
	apparent south line of this tract and the platted north lines of the
	aforementioned Carriage Hills Subdivision Section One, and Red Oak
	Ranch Subdivision
	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)  Section 7953.107, Special District Local
	Laws Code, as added by Section 1 of this Act, takes effect only if
	this Act receives a two-thirds vote of all the members elected to
	each house.
	(b)  If this Act does not receive a two-thirds vote of all the
	members elected to each house, Subchapter C, Chapter 7953, Special
	District Local Laws Code, as added by Section 1 of this Act, is
	amended by adding Section 7953.107 to read as follows:
	Sec. 7953.107.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	(c)  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, 2015.