Bill Text: TX HB4649 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 198; 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) 2021-06-15 - Effective immediately [HB4649 Detail]

Download: Texas-2021-HB4649-Enrolled.html

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H.B. No. 4649

AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 198; 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 7906A to read as follows:
CHAPTER 7906A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
NO. 198
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7906A.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. 198.
Sec. 7906A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7906A.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. 7906A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7906A.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. 7906A.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. 7906A.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. 7906A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7906A.0202, directors
serve staggered four-year terms.
Sec. 7906A.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 7906A.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 7906A.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 7906A.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. 7906A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7906A.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. 7906A.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. 7906A.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. 7906A.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. 7906A.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
7906A.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. 7906A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7906A.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. 7906A.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. 7906A.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. 7906A.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. 7906A.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. 198 initially includes all the territory contained in the
following area:
Being a 534.5 acre (23,283,437 square feet) tract situated in
the Walker County School Land Survey, Abstract No. 494, and the
William Wills Survey, Abstract No. 594, both in Montgomery County,
Texas, being a portion of a called 1,778.511 acre tract conveyed to
FM 242, Limited, by deed recorded in Clerk's File No. 2003-155376,
Montgomery County Official Public Records of Real Property; said
534.5 acre (23,283,437 square feet) tract being more particularly
described as follows with all bearings being based on called
bearings recorded under said Clerk's File No. 2003-155376,
Montgomery County Official Public Records of Real Property:
BEGINNING at the northerly northeast corner of said called
1,778.511 acre tract;
THENCE, South 03°03'02" East, along the northerly east line of
said called 1,778.511 acre tract, 3,692.24 feet to an angle point in
said northerly east line of said called 1,778.511 acre tract;
THENCE, South 03°09'55" East, continuing along said northerly
east line of said called 1,778.511 acre tract, 2,382.96 feet to an
interior corner of said called 1,778.511 acre tract;
THENCE, North 87°14'11" East, along an easterly north line of
said called 1,778.511 acre tract, 567.51 feet to the beginning of a
curve to the left, being 50 feet offset from the City of Splendora
Extraterritorial Jurisdiction (E.T.J.) limit as recorded in
Montgomery County Court Cause No. 04-12-10629-CV;
THENCE, along said curve to the left in a southeasterly
direction, 50 feet offset from said City of Splendora
Extraterritorial Jurisdiction (E.T.J.) limit as recorded in said
Montgomery County Court Cause No. 04-12-10629-CV, with a radius of
2,465.67 feet, a central angle of 20°24'23", an arc length of 878.17
feet, and a chord bearing South 24°57'41" East, 873.53 feet to the
south line of said called 1,778.511 acre tract, being 50 feet offset
from said City of Splendora Extraterritorial Jurisdiction (E.T.J.)
limit as recorded in said Montgomery County Court Cause
No. 04-12-10629-CV;
THENCE, along said south line of said called 1,778.511 acre
tract, the following six (6) courses and distances:
1. South 86°35'26" West, 892.11 feet to a point for corner;
2. South 87°00'04" West, 2,049.85 feet to a point for corner;
3. South 87°02'35" West, 1,773.11 feet to a point for corner;
4. South 86°57'43" West, 1,735.80 feet to a point for corner;
5. North 02°56'52" West, 3.66 feet to a point for corner;
6. South 86°58'03" West, 1,031.86 feet to a point for corner;
THENCE, North 40°40'17" East, over and across said called
1,778.511 acre tract, 9,526.68 feet to the POINT OF BEGINNING,
CONTAINING 534.5 acres (23,283,437 square feet) of land in
Montgomery County, Texas.
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
7906A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7906A.0306 to read as
follows:
Sec. 7906A.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, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4649 was passed by the House on May
14, 2021, by the following vote: Yeas 106, Nays 39, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4649 was passed by the Senate on May
27, 2021, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor