H.B. No. 5316

	AN ACT
	relating to the creation of the Montgomery County Municipal Utility
	District No. 235; 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 8016 to read as follows:
	CHAPTER 8016. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 235
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 8016.0101.  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. 235.
	Sec. 8016.0102.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 8016.0103.  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. 8016.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section
	8016.0103 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. 8016.0105.  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. 8016.0106.  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. 8016.0201.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five elected directors.
	(b)  Except as provided by Section 8016.0202, directors
	serve staggered four-year terms.
	Sec. 8016.0202.  TEMPORARY DIRECTORS.  (a)  The temporary
	board consists of:
	(1)  Natalie Simmons;
	(2)  Page Barnes;
	(3)  Sally Miller;
	(4)  Kenneth Sessum Sr.; and
	(5)  David Thomas.
	(b)  Temporary directors serve until the earlier of:
	(1)  the date permanent directors are elected under
	Section 8016.0103; 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 8016.0103 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 8016.0103; 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. 8016.0301.  GENERAL POWERS AND DUTIES.  The district
	has the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 8016.0302.  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. 8016.0303.  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. 8016.0304.  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. 8016.0305.  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. 8016.0401.  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 8016.0403.
	(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. 8016.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 8016.0401, 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. 8016.0403.  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. 8016.0501.  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. 8016.0502.  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. 8016.0503.  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. 235 initially includes all the territory contained in the
	following area:
	Being a 149.1 acre tract of land located in the B.F. Winters
	Survey, Abstract No. 621 and the Matthew Morris Survey, Abstract
	No. 338 in Montgomery County, Texas; said 149.1 acre tract being a
	portion of a called 160.99 acre tract recorded in the name of Conroe
	1484, LLC under Clerk's File (C.F.) No. 2022150104 of the Official
	Public Records of Montgomery County (O.P.R.M.C.); said 149.1 acre
	tract being more particularly described by metes and bounds as
	follows (all bearings are referenced to the Texas Coordinate
	System, North American Datum of 1983 (NAD83), Central Zone):
	BEGINNING at a 5/8-inch iron rod with cap stamped "COSTELLO
	INC" found at the north corner of said 160.99 acre tract, the east
	corner of a called 5.47 acre tract recorded in the name of Asim and
	Faisal Shahzad under C.F. No. 2012082132 of the O.P.R.M.C., being
	on the southerly right-of-way (R.O.W.) line of F.M. 1484 (80-feet
	wide per Volume (Vol.) 344, Page 152 of the Montgomery County Deed
	Records (M.C.D.R.);
	Thence, with the southerly R.O.W. line of said FM 1484 the
	following five (5) courses:
	1.  866.55 feet along the arc of a curve to the right, said
	curve having a central angle of 54 degrees 15 minutes 26 seconds, a
	radius of 915.08 feet and a chord that bears South 74 degrees 20
	minutes 01 seconds East, a distance of 834.54 feet to a 5/8-inch
	iron rod with cap stamped "COSTELLO INC" found;
	2.  South 47 degrees 12 minutes 18 seconds East, a distance
	of 236.50 feet to a 5/8-inch iron rod with cap stamped "COSTELLO
	INC" found;
	3.  354.05 feet along the arc of a curve to the right, said
	curve having a central angle of 22 degrees 10 minutes 00 seconds, a
	radius of 915.13 feet and a chord that bears South 36 degrees 07
	minutes 18 seconds East, a distance of 351.84 feet to a 5/8-inch
	iron rod with cap stamped "COSTELLO INC" found;
	4.  South 25 degrees 02 minutes 18 seconds East, a distance
	of 236.30 feet to a 5/8-inch iron rod with cap stamped "COSTELLO
	INC" found;
	5.  329.69 feet along the arc of a curve to the left, said
	curve having a central angle of 18 degrees 59 minutes 07 seconds, a
	radius of 994.97 feet and a chord that bears South 34 degrees 31
	minutes 52 seconds East, a distance of 328.19 feet to a 5/8-inch
	iron rod with cap stamped "COSTELLO INC" found for the northeast
	corner of said 160.99 acre tract and the north corner of Valley
	Oaks, Section One, a subdivision recorded in Cabinet Q, Sheet 109 of
	the Montgomery County Plat Records;
	6.  Thence, with the common line of said 160.99 acre tract
	and said Valley Oaks, Section One, South 41 degrees 29 minutes 36
	seconds West, a distance of 639.24 feet to a 5/8-inch iron rod with
	cap stamped "COSTELLO INC" found;
	7.  Thence, with the northwest lines of said Valley Oaks,
	Section One and Valley Oaks, Section Two, an unrecorded
	subdivision, and the southeast line of said 160.99 acre tract,
	South 41 degrees 48 minutes 36 seconds West, a distance of 1,727.21
	feet to a 5/8-inch capped iron rod stamped "COSTELLO INC" found for
	the south corner of said 160.99 acre tract;
	8.  Thence, with a southwest line of said 160.99 acre tract,
	North 47 degrees 56 minutes 11 seconds West, a distance of 339.76
	feet to a 3/4-inch iron rod found at an interior corner of said
	160.99 acre tract;
	9.  Thence, with an interior line of said 160.99 acre tract,
	South 44 degrees 15 minutes 23 seconds West, at a distance of 382.76
	feet pass a 3/4-inch iron rod found for reference, continue in all a
	distance of 470.14 feet to the southeast corner of said 160.99 acre
	tract, same being on the centerline of Caney Creek;
	Thence, with the meanders of the centerline of Caney Creek
	the following twenty-one (22) courses:
	10.  North 59 degrees 33 minutes 18 seconds West, a distance
	of 174.86 feet;
	11.  South 80 degrees 55 minutes 47 seconds West, a distance
	of 200.00 feet;
	12.  South 47 degrees 51 minutes 27 seconds West, a distance
	of 227.00 feet;
	13.  North 52 degrees 25 minutes 33 seconds West, a distance
	of 100.00 feet;
	14.  North 03 degrees 50 minutes 27 seconds East, a distance
	of 185.00 feet;
	15.  North 43 degrees 01 minutes 33 seconds West, a distance
	of 120.00 feet;
	16.  North 65 degrees 42 minutes 33 seconds West, a distance
	of 185.00 feet;
	17.  South 82 degrees 21 minutes 27 seconds West, a distance
	of 100.00 feet;
	18.  South 23 degrees 41 minutes 27 seconds West, a distance
	of 232.00 feet;
	19.  South 57 degrees 01 minutes 27 seconds West, a distance
	of 112.00 feet;
	20.  North 71 degrees 50 minutes 33 seconds West, a distance
	of 123.00 feet;
	21.  North 27 degrees 55 minutes 33 seconds West, a distance
	of 138.00 feet;
	22.  North 03 degrees 57 minutes 27 seconds East, a distance
	of 175.00 feet;
	23.  North 43 degrees 04 minutes 33 seconds West, a distance
	of 238.00 feet;
	24.  North 77 degrees 35 minutes 33 seconds West, a distance
	of 200.00 feet;
	25.  North 21 degrees 40 minutes 33 seconds West, a distance
	of 80.00 feet;
	26.  North 49 degrees 35 minutes 27 seconds East, a distance
	of 160.00 feet;
	27.  North 31 degrees 31 minutes 33 seconds West, a distance
	of 134.00 feet;
	28.  South 83 degrees 26 minutes 27 seconds West, a distance
	of 232.00 feet;
	29.  South 51 degrees 32 minutes 27 seconds West, a distance
	of 174.30 feet;
	30.  North 25 degrees 41 minutes 33 seconds West, a distance
	of 290.50 feet;
	31.  North 07 degrees 58 minutes 15 seconds West, a distance
	of 97.30 feet to the southeast R.O.W. line of said FM 1484 (width
	varies per Vol. 344, Pg. 144 and Vol. 344, Pg. 147 of the M.C.D.R.,
	and C.F. No. 9325884 and 9325885 of the O.P.R.M.C.);
	Thence, with the southeast R.O.W. line of said FM 1484 the
	following two (2) courses:
	32.  North 64 degrees 28 minutes 00 seconds East, a distance
	of 450.50 feet to a 5/8-inch iron rod with cap stamped "COSTELLO
	INC" found;
	33.  232.59 feet along the arc of a curve to the left, said
	curve having a central angle of 12 degrees 45 minutes 13 seconds, a
	radius of 1,044.93 feet and a chord that bears North 55 degrees 28
	minutes 49 seconds East, a distance of 232.11 feet;
	34.  Thence, through said 160.99 acre tract, South 49 degrees
	35 minutes 33 seconds East, a distance of 575.87 feet;
	35.  Thence, continuing through said 160.99 acre tract,
	North 41 degrees 55 minutes 01 seconds East, at a distance of 801.87
	feet pass the south corner of a called 5.255 acre tract recorded in
	the name of Michael Chardwick Et Ux. under C.F. No. 81-03320 of the
	O.P.R.M.C., at a distance of 1,095.65 feet pass the south corner of
	a called 3.5567 acre tract recorded in the name of David Hernandez
	under C.F. No. 2002102847 of the O.P.R.M.C, at a distance of
	1,295.06 feet pass a 1/2-inch iron rod found at the south corner of
	a called 4.35 acre tract recorded in the name of Andrew S. Gordon
	and Jessica Faye Taylor under C.F. No. 2020045361 of the
	O.P.R.M.C., at a distance of 1,751.38 feet pass a 3/4-inch iron rod
	found at the south corner of aforesaid 5.47 acre tract, continue in
	all a distance of 2,664.84 feet to the Point of Beginning and
	containing 149.1 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
	8016, Special District Local Laws Code, as added by Section 1 of
	this Act, is amended by adding Section 8016.0306 to read as follows:
	Sec. 8016.0306.  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 certify that H.B. No. 5316 was passed by the House on May 9,
	2023, by the following vote:  Yeas 108, Nays 34, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 5316 was passed by the Senate on May
	24, 2023, by the following vote:  Yeas 27, Nays 3, 1 present, not
	voting.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor