H.B. No. 5369

	AN ACT
	relating to the creation of the Sandow Municipal Utility District
	No. 1; 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 7986A to read as follows:
	CHAPTER 7986A. SANDOW MUNICIPAL UTILITY DISTRICT NO. 1
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 7986A.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 Sandow Municipal Utility
	District No. 1.
	Sec. 7986A.0102.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 7986A.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. 7986A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section
	7986A.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. 7986A.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. 7986A.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. 7986A.0201.  GOVERNING BODY; TERMS.  (a)  The district
	is governed by a board of five elected directors.
	(b)  Except as provided by Section 7986A.0202, directors
	serve staggered four-year terms.
	Sec. 7986A.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 7986A.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 7986A.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 7986A.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. 7986A.0301.  GENERAL POWERS AND DUTIES.  The district
	has the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 7986A.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. 7986A.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. 7986A.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. 7986A.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.
	Sec. 7986A.0306.  DIVISION OF DISTRICT. (a) The board, on
	its own motion or on receipt of a petition signed by the owner or
	owners of a majority of the assessed value of the real property in
	the district, may adopt an order dividing the district.
	(b)  An order dividing a district may create one or more new
	districts and may provide for the continuation of the district.
	(c)  An order dividing the district shall:
	(1)  name any new district;
	(2)  include the metes and bounds description of the
	territory of each of the districts;
	(3)  appoint temporary directors for any new district;
	and
	(4)  provide for the division of assets and liabilities
	between the districts.
	(d)  The board may adopt an order dividing the district
	before or after the date the board holds an election to confirm the
	district's creation.
	(e)  The district may be divided only if the district:
	(1)  has never issued any bonds; and
	(2)  is not imposing ad valorem taxes.
	(f)   A new district created by the division of the district
	may not, at the time the new district is created, contain any land
	outside the area described by Section 2 of the Act enacting this
	chapter.
	(g)  On or before the 30th day after the date of adoption of
	an order dividing the district, the district shall file the order
	with the commission and record the order in the real property
	records of each county in which the district is located.
	(h)  This chapter applies to any new district created by the
	division of the district, and a new district has all the powers and
	duties of the district.
	(i)  A new district created by the division of the district
	shall hold a confirmation and directors' election.
	(j)  If the creation of the new district is confirmed, the
	new district shall provide the election date and results to the
	commission.
	(k)  A new district created by the division of the district
	must hold an election as required by this chapter to obtain voter
	approval before the district may impose a maintenance tax or issue
	bonds payable wholly or partly from ad valorem taxes.
	(l)  The district may continue to rely on confirmation,
	directors', bond, or tax elections held prior to the division.
	(m)  Municipal consent to the creation of the district and to
	the inclusion of land in the district acts as municipal consent to
	the creation of any new district created by the division of the
	district and to the inclusion of land in the new district.
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 7986A.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 7986A.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. 7986A.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 7986A.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. 7986A.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. 7986A.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. 7986A.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. 7986A.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 Sandow Municipal Utility District No. 1
	initially includes all the territory contained in the following
	area:
	BEING A 201.0 ACRES TRACT OF LAND SITUATED IN THE ELIZABETH
	MILBOURN SURVEY, ABSTRACT 414 AND OLIVER FARNSWORTH SURVEY,
	ABSTRACT 163, MILAM COUNTY, TEXAS; AND BEING A PORTION OF A CALLED
	15,022.733 ACRES TRACT OF LAND DESIGNATED AS "TRACT 018-R3" AND
	DESCRIBED TO SLR PROPERTY I, LP, AS SHOWN ON INSTRUMENT RECORDED
	UNDER DOCUMENT NO. 2021-5108 OF THE OFFICIAL PUBLIC RECORDS OF
	MILAM COUNTY, TEXAS (O.P.R.M.C.T.); AND BEING MORE PARTICULARLY
	DESCRIBED AS FOLLOWS:
	BEGINNING IN THE WEST BOUNDARY LINE OF SAID TRACT 018-R3 AND
	FOR THE SOUTHEAST CORNER OF A CALLED 61.006 ACRES TRACT OF LAND
	DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON INSTRUMENT RECORDED UNDER
	DOCUMENT NO. 2022-5130 OF THE OFFICIAL PUBLIC RECORDS OF MILAM
	COUNTY, TEXAS (O.P.R.M.C.T.);
	THENCE, WITH SAID WEST BOUNDARY LINE OF TRACT 018-R3, SAME
	BEING THE EAST BOUNDARY LINE OF SAID 61.006 ACRES TRACT, THE
	FOLLOWING TWO (2) COURSES AND DISTANCES:
	1.  NORTH 21°10'24" WEST, A DISTANCE OF 2,162.68 FEET;
	2.  NORTH 68°55'41" EAST, A DISTANCE OF 1,308.45 FEET;
	THENCE, NORTH 21°29'53" WEST, CONTINUING WITH SAID WEST
	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID EAST BOUNDARY LINE OF
	THE 61.006 ACRES TRACT, THE EAST BOUNDARY LINE OF A CALLED 28.718
	ACRES TRACT OF LAND DESCRIBED TO RUSSELL D. LEWIS AND LISA LEWIS, AS
	SHOWN ON INSTRUMENT RECORDED UNDER DOCUMENT NO. 2020-1490 OF THE
	O.P.R.M.C.T., AND THE EAST BOUNDARY LINE OF A CALLED 20.0 ACRES
	TRACT OF LAND DESCRIBED TO KREGG YOUNT, AS SHOWN ON INSTRUMENT
	RECORDED UNDER DOCUMENT NO. 1129-451 OF THE O.P.R.M.C.T., A
	DISTANCE OF 1,916.67 FEET TO THE SOUTH BOUNDARY LINE OF A CALLED
	27.527 ACRES TRACT OF LAND DESCRIBED TO KAREN ANN YOUNT, AS SHOWN ON
	INSTRUMENT RECORDED UNDER DOCUMENT NO. 2022-5130 OF THE
	O.P.R.M.C.T.;
	THENCE, NORTH 69°10'24" EAST, CONTINUING WITH SAID WEST
	BOUNDARY LINE OF TRACT 018-R3, SAME BEING SAID SOUTH BOUNDARY LINE
	OF 27.527 ACRES TRACT AND THE SOUTH BOUNDARY LINE OF A CALLED 73.703
	ACRES TRACT OF LAND DESCRIBED TO WILFORD ALLEN TATE, AS SHOWN ON
	INSTRUMENT RECORDED UNDER DOCUMENT NO. 1264-251 OF THE
	O.P.R.M.C.T., A DISTANCE OF 1,809.84 FEET TO THE SOUTHEAST CORNER
	OF SAID 73.703 ACRES TRACT;
	THENCE, NORTH 20°34'38" WEST, CONTINUING WITH SAID WEST
	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE EAST BOUNDARY LINE OF
	SAID 73.703 ACRES TRACT, A DISTANCE OF 996.83 FEET TO THE SOUTHWEST
	CORNER OF A CALLED 150.0 ACRES TRACT OF LAND DESCRIBED TO HOBBS
	MARTIN D ESTATE (RECORDING INFORMATION UNKNOWN);
	THENCE, NORTH 68°13'17" EAST, DEPARTING SAID EAST BOUNDARY
	LINE OF THE 73.703 ACRES TRACT OF LAND, CONTINUING WITH SAID WEST
	BOUNDARY LINE OF TRACT 018-R3, SAME BEING THE SOUTH BOUNDARY LINE OF
	SAID 150.0 ACRES TRACT, DISTANCE OF 1,314.13 FEET TO THE SOUTHEAST
	CORNER OF SAID 150.0 ACRE TRACT;
	THENCE, DEPARTING SAID WEST BOUNDARY LINE OF TRACT 018-R3 AND
	SAID SOUTH BOUNDARY LINE OF THE 150.0 ACRES TRACT, OVER AND ACROSS
	SAID TRACT 018-R3, THE FOLLOWING THREE (3) COURSES AND DISTANCES:
	1.  SOUTH 20°34'38" EAST, A DISTANCE OF 1,234.87 FEET;
	2.  SOUTH 25°30'16" WEST, A DISTANCE OF 3,635.53 FEET;
	3.  SOUTH 31°36'25" WEST, A DISTANCE OF 2,227.86 FEET TO THE POINT
	OF BEGINNING AND CONTAINING 201.0 ACRES OF LAND, MORE OR LESS, IN
	MILAM COUNTY, TEXAS. THIS DOCUMENT WAS PREPARED IN THE OFFICE OF
	KIMLEY-HORN INC. IN AUSTIN, 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
	7986A, Special District Local Laws Code, as added by Section 1 of
	this Act, is amended by adding Section 7986A.0307 to read as
	follows:
	Sec. 7986A.0307.  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. 5369 was passed by the House on May 6,
	2023, by the following vote:  Yeas 105, Nays 29, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 5369 was passed by the Senate on May
	21, 2023, by the following vote:  Yeas 26, Nays 4, 1 present, not
	voting.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor