Bill Text: TX HB5391 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 218; 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) 2023-06-11 - Effective immediately [HB5391 Detail]

Download: Texas-2023-HB5391-Enrolled.html

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H.B. No. 5391

AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 218; 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 8025A to read as follows:
CHAPTER 8025A. MONTGOMERY COUNTY MUNICIPAL UTILITY
DISTRICT NO. 218
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8025A.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. 218.
Sec. 8025A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8025A.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. 8025A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
8025A.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. 8025A.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. 8025A.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. 8025A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 8025A.0202, directors
serve staggered four-year terms.
Sec. 8025A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Timothy Jones;
(2) Chris Howard;
(3) Jennifer Cleveland;
(4) Nikki Williams; and
(5) Jake Trice.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 8025A.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 8025A.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 8025A.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. 8025A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8025A.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. 8025A.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. 8025A.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. 8025A.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. 8025A.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
8025A.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. 8025A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8025A.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. 8025A.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. 8025A.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. 8025A.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. 8025A.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. 218 initially includes all the territory contained in the
following area:
A METES & BOUNDS description of a certain 155.6 acre
(6,780,048 square feet) tract of land situated in the Archibald M.
Alexander Survey, Abstract No. 1, in Montgomery County, Texas,
being all of the called 155.6 acre tract conveyed to Magnolia Forest
TX, LLC, by deed recorded Clerk's File No. 2021020708, Montgomery
County Official Public Records, also being a portion of the
remainder of a called 190.65 acre tract conveyed to Randal A.
Hendricks, Trustee, by deed recorded in Volume 768, Page 535,
Montgomery County Deed Records; said 155.6 acre (6,780,048 square
feet) tract of land being more particularly described as follows
with all bearings being based on the Texas Coordinate System,
Central Zone, NAD 83:
BEGINNING at a 1/2-inch pinched iron pipe found, being an
interior corner of the remainder of said called 190.65 acre tract,
being the north corner of a called 9.5937 acre tract conveyed to
Matthew Christopher Doetsch and Sara-Anne Doetsch by deed recorded
in Clerk's File No. 2020013669, Montgomery County Official Public
Records, being on the southwest right-of-way line of Jackson Road
(based on a width of 100 feet) recorded in Volume 340, Page 175,
Montgomery County Deed Records, and being the easterly northeast
corner of the herein described tract;
THENCE, South 59°58'02" West, 929.16 feet to a 1-inch pinched
iron pipe found, being the northwest corner of said called 9.5937
acre tract and being an interior corner of the remainder of said
called 190.65 acre tract;
THENCE, South 25°02'43" West, 330.15 feet to a 1-inch pinched
iron pipe found, being an interior corner of the remainder of said
called 190.65 acre tract, being the southwest corner of said called
9.5937 acre tract, and being on the northeast line of the remainder
of said called 190.65 acre tract;
THENCE, South 64°02'02" East, at 366.28 feet passing the most
southerly corner of said called 9.5937 acre tract and the northwest
corner of a called 15.0463 acre tract conveyed to Yibiao Lu and Yi
Zhou by deed recorded in Clerk's File No. 2013103816, Montgomery
County Official Public Records, from which a 5/8- inch iron rod
(with cap) found bears North 34°04' East, 0.4 feet, at 1,102.42 feet
passing a 1/2-inch pinched iron pipe found, continuing for a total
distance of 1,583.62 feet to a 5/8-inch iron rod with cap found,
being the southeast corner of said called 15.0463 acre tract and
being the southwest corner of a called 10.011 acre tract conveyed to
Gunther Von Gynz-Rekowski and Kathrin Von Gynz-Rekowski by deed
recorded in Clerk's File No. 99005077, Montgomery County Official
Public Records of Real Property;
THENCE, North 76°39'11" East, at 653.42 feet passing a point
on the south line of said called 10.011 acre tract, from which a
5/8-inch iron rod found bears South 13°21' East, 1.8 feet,
continuing for a total distance of 742.36 feet to the southeast
corner of said called 10.011 acre tract, being an interior corner of
the remainder of said called 190.65 acre tract and being on the
southwest right-of-way line of said Jackson Road, from which a
5/8-inch iron rod found bears South 16°43' East, 1.6 feet;
THENCE, South 43°03'37" East, 1,745.92 feet to a 5/8-inch iron
rod with cap found, being the southeast corner of the remainder of
said called 190.65 acre tract, being the northeast corner of a
called 15.5190 acre tract (Tract I) conveyed to Charles Saunders by
deed recorded in Clerk's File No. 2020142207, Montgomery County
Official Public Records, being the northeast corner of a called
0.5487 acre tract (Tract II) conveyed to Charles Saunders by deed
recorded in Clerk's File No. 2020142207, Montgomery County
Official Public Records, being on the southwest right-of-way line
of said Jackson Road, and being the southeast corner of the herein
described tract, from which a 1/2-inch iron rod (with cap) found
bears South 87°57' West, 5.2 feet;
THENCE, South 87°56'36" West, 4,133.89 feet to a 1/2-inch iron
rod (with cap) found, being the northwest corner of said called
15.5190 acre tract (Tract I), being an interior corner of the
remainder of a called 7,395.018 acre tract conveyed to Charles
Eugene Campbell, individually and as independent executor of the
estate of Margie Campbell, deceased and as trustee of the exempt
Charles Eugene Campbell Marital Trust and as trustee of the
non-exempt Charles Eugene Campbell Marital Trust, by deed recorded
in Clerk's File No. 2002-136821, Montgomery County Official Public
Records of Real Property, being the southwest corner of the
remainder of said called 190.65 acre tract, and being the southwest
corner of the herein described tract;
THENCE, North 02°18'24" West, 1,349.49 feet to a 5/8-inch iron
rod with cap found, being on the east line of the remainder of said
called 7,395.018 acre tract and being on the west line of the
remainder of said called 190.65 acre tract;
THENCE, North 03°13'24" West, at 1,040.41 feet passing the
southwest corner of the remainder of a called 45.000 acre tract
described in substitute trustee's deed to Randal A. Hendricks,
Trustee recorded in Clerk's File No. 8820944, Montgomery County
Official Public Records of Real Property, being on the east line of
the remainder of said called 7,395.018 acre tract and being the
northwest corner of the remainder of said called 190.65 acre tract,
from which a 1/2-inch iron rod found bears South 86°47' West, 2.8
feet, continuing for a total distance of 1,488.14 feet to a 5/8-inch
iron rod found, being on the east line of the remainder of said
called 7,395.018 acre tract, being the northwest corner of the
remainder of said called 190.65 acre tract, being the southwest
corner of a called 11.67 acre tract conveyed to Walter Jewell Bell,
Jr. by deed recorded in Volume 825, Page 383, Montgomery County Deed
Records, and being the northwest corner of the herein described
tract;
THENCE, North 86°15'07" East, 1,661.40 feet to the southeast
corner of said called 11.67 acre tract, being the northeast corner
of the remainder of said called 190.65 acre tract, being on the
southwest right-of-way line of said Jackson Road, and being the
northerly northeast corner of the herein described tract, from
which a 1/2-inch iron rod found bears North 86°15' East, 0.5 feet;
THENCE, South 43°03'37" East, 318.43 feet to the POINT OF
BEGINNING, CONTAINING 155.6 acres (6,780,048 square feet) of land
in Montgomery County, Texas filed in the offices of Elevation Land
Solutions in The Woodlands, 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
8025A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 8025A.0306 to read as
follows:
Sec. 8025A.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. 5391 was passed by the House on May 9,
2023, by the following vote: Yeas 110, Nays 32, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 5391 was passed by the Senate on May
21, 2023, by the following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor