Bill Text: TX SB2159 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 206; granting a limited power of eminent domain; providing authority to issue bonds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-05-10 - Left pending in committee [SB2159 Detail]

Download: Texas-2021-SB2159-Introduced.html

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87R10037 ANG-F
By: Creighton S.B. No. 2159

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Montgomery County Municipal Utility
District No. 206; granting a limited power of eminent domain;
providing authority to issue bonds.
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 7928A to read as follows:
CHAPTER 7928A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
NO. 206
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7928A.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. 206.
Sec. 7928A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7928A.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. 7928A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7928A.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. 7928A.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. 7928A.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. 7928A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7928A.0202, directors
serve staggered four-year terms.
Sec. 7928A.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 7928A.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 7928A.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 7928A.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. 7928A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7928A.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. 7928A.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. 7928A.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. 7928A.0305. 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. 7928A.0306. EFFECT OF ANNEXATION BY CITY OF CONROE.
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. 7928A.0307. 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. 7928A.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
7928A.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. 7928A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7928A.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. 7928A.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. 7928A.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, tax increment payments, grants, or
other district money, or any combination of those sources, to pay
for any authorized district purpose.
Sec. 7928A.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. 7928A.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. 206 initially includes all the territory contained in the
following area:
Being 92.833 acres of land located in the John Toops Survey,
Abstract Number 563, Montgomery County, Texas, being all of that
certain called 92.8344 acre tract described in the deed to
Cliffstone Hills, LTD., by an instrument of record in Document
Number 2020146551 of the Official Public Records of Montgomery
County, Texas (M.C.O.P.R.), said 92.833 acre tract being more
particularly described by metes and bounds as follows (all bearings
referenced to the Texas Coordinate System, Central Zone, NAD83;
BEGINNING at a 1-inch pinched top iron pipe found marking the
north corner of said 92.8344 acre tract, same being the east corner
of that certain called 1.694 acre tract described in the deed to
Break-Thru Performance Engineering, Inc., by an instrument of
record under Document Number 2013102060, M.C.O.P.R., said point
lying on the southwesterly right-of-way line of Loop 336 (width
varies - as monumented);
Thence, along the northeast line of said 92.8344 acre tract
and the southwesterly right- of-way line of said Loop 336 the
following 8 (eight) courses and distances:
1. South 64° 54' 08" East, 438.00 feet to a 4" x 4" concrete
TXDOT monument found for corner;
2. South 67° 53' 50" East, 100.00 feet to a to a 4" x 4"
concrete TXDOT monument found for corner;
3. South 64° 56' 38" East, 999.89 feet to a 5/8-inch iron rod
found for corner;
4. South 62° 10' 50" East, 200.00 feet to a bent 1/2-inch
iron rod found for corner;
5. South 64° 40' 50" East, 197.70 feet to a point for corner,
from which a bent 1/2-inch iron rod bears South 26° 02' 39" West,
0.74 feet;
6. South 67° 49' 50" East, 100.26 feet to a point for corner,
from which a found broken 4" x 4" concrete TXDOT monument bears
South 29° 29' 52" West, 0.59 feet;
7. South 65° 04' 49" East, 299.59 feet to a 4" x 4" concrete
TXDOT monument found for corner;
8. South 67° 43' 26" East, 45.51 feet to a 5/8-inch iron rod
with cap stamped "COTTON SURVEYING" found marking the east corner
of said 92.8344 acre tract, same being the northwest corner of that
certain called 186.0 acre tract described in the deed to Conroe ISD,
by an instrument of record under File Number 2008034031, of the
Official Public Records of Real Property of Montgomery County,
Texas (M.C.O.P.R.R.P.);
Thence, South 25° 27' 45" West, along the southeast line of
said 92.8344 acre tract and the northwesterly line of said 186.0
acre tract, 357.62 feet to a 5/8-inch iron rod with cap stamped
"COTTON SURVEYING" found for corner;
Thence, South 56° 37' 50" West, continuing along said common
line, 2,407.87 feet to a 5/8-inch iron rod with cap stamped "COTTON
SURVEYING" found marking the south corner of said 92.8344 acre
tract and the west corner of said 186.0 acre tract, said point lying
on the northeast right-of-way line of F.M. 3083 (called 120' wide)
as described in Volume 283, Page 451 of the Montgomery County Deed
Records (M.C.D.R.), and File Number 9045106, M.C.O.P.R.R.P.;
Thence, North 33° 15' 24" West, 1,220.07 feet to a point for
corner, from which a brass disk in concrete stamped "TXDOT" bears
North 09° 24' 11" West, 1.26 feet, the beginning of a non-tangent
curve;
Thence, 215.57 feet continuing along said common line and the
arc of a non-tangent curve to the right, having a radius of 3,010.63
feet, a central angle of 04° 06' 09", and a chord which bears North
31° 12' 54" West, 215.52 feet to the west corner of said 92.8344 acre
tract, from which a 1/2-inch iron rod bears North 11° 00' 12" East,
1.03 feet, said point lying on the southeasterly line of that
certain called 9.66 acre tract described in the deed to Louisiana
Electrical Wholesalers, Inc. by an instrument of record under File
Number 9826542, M.C.O.P.R.R.P.;
Thence, North 58° 28' 08" East, along a westerly line of said
92.8344 acre tract and a south line of said 9.66 acre tract, 817.51
feet to 1/2-inch iron rod found marking the east corner of said 9.66
acre tract and an interior westerly corner of said 92.8344 acre
tract;
Thence, North 31° 23' 20" West, along a westerly line of said
92.8344 acre tract and the easterly lines of said 9.66 acre tract
and that certain called 3.956 acre tract described in the deed to
Conroe Reload Center by an instrument of record under File Number
9658151, M.C.O.P.R.R.P. 804.67 feet to the northwest corner of said
92.8344 acre tract, from which a 5/8-inch iron rod bears South 15°
41' 14" East, 0.85 feet, said point lying on the south line of that
certain called 1.0 acre tract described in the deed to Agustin
Ventura Gonzales by an instrument of record under Document Number
2011076381, M.C.O.P.R.R.P.;
Thence, North 56° 46' 10" East, along the north line of said
92.8344 acre tract and the south lines of said 1.0 acre tract, that
certain called 5.650 acre tract described in the deed to Texas
Outdoor Power Sales, Inc. by an instrument of record under Document
Number 2019075494, M.C.O.P.R., and the aforementioned 1.694 acre
tract, 610.16 feet to the POINT OF BEGINNING and containing 92.833
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) Section 7928A.0307, 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 7928A, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 7928A.0307 to read as follows:
Sec. 7928A.0307. 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, 2021.