By: Creighton S.B. No. 2173

(In the Senate - Filed March 30, 2021; April 1, 2021, read first time and referred to Committee on Local Government; April 23, 2021, reported favorably by the following vote: Yeas 9, Nays 0; April 23, 2021, sent to printer.) Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility District No. 207; 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 7931A to read as follows:

CHAPTER 7931A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT

NO. 207

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7931A.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. 207.

Sec. 7931A.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

Sec. 7931A.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. 7931A.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7931A.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. 7931A.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. 7931A.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. 7931A.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Except as provided by Section 7931A.0202, directors serve staggered four-year terms.

Sec. 7931A.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 7931A.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 7931A.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 7931A.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. 7931A.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 7931A.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. 7931A.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. 7931A.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. 7931A.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. 7931A.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 7931A.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. 7931A.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7931A.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. 7931A.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. 7931A.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. 7931A.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. 7931A.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. 207 initially includes all the territory contained in the following area:

Being 287.74 acres of land located in the Ransom House Survey, Abstract No. 245, the Joseph House Survey, Abstract No. 250, and the Theodore Slade Survey, Abstract No. 500, Montgomery County, Texas; said 287.74 acres being all of a called 141.2-acre tract of land conveyed to ABE Limited in Clerk's File (C.F.) No. 2001067097 of the Official Public Records of Real Property of Montgomery County (O.P.R.R.P.M.C.), all of a called 60.00-acre tract of land conveyed to 12735 Whittington, Ltd. in C.F. No. 2001067095 of the O.P.R.R.P.M.C., and the remainder (86.54 acres) of a called 90.00-acre tract of land conveyed to CET Limited in C.F. No. 2001067093 of the O.P.R.R.P.M.C.; said 287.74-acre tract being more particularly described by metes and bounds as follows (all bearings are referenced to the west line of said called 141.2-acre tract, called N32°46'10"W 1,732.87'):

Commencing at the intersection of the west right-of-way line of Farm to Market Road (F.M.) 1314 (100' wide) as recorded in Volume 214, Page 188 of the Montgomery County Deed Records (M.C.D.R.) with the north right-of-way line of Crighton Road (60' wide) as recorded in Volume 211, Page 511 and Volume 214, Page 188 of the (M.C.D.R.), same being the southeast corner of said 90.00-acre tract and the southeast corner of a called 3.46-acre tract of land conveyed to City of Conroe in C.F. No. 2008107765 of the O.P.R.R.P.M.C.;

Thence, with said west right-of-way line of F.M. 1314 and the east line of said 90.00-acre and 3.46-acre tracts, 31.81 feet along the arc of a curve to the right, said curve having a central angle of 00 degrees 37 minutes 31 seconds, a radius of 2,914.79 feet and a chord that bears North 37 degrees 10 minutes 07 seconds West, a distance of 31.81 feet to the northeast corner of said 3.46-acre tract and Point of Beginning of the herein described tract;

1. Thence, with the north line of said 3.46-acre tract, South 72 degrees 42 minutes 37 seconds West, a distance of 1,218.58 feet;

2. Thence, continuing with said north line, South 72 degrees 23 minutes 45 seconds West, a distance of 1,899.94 feet to the northwest corner of said 3.46-acre tract, same being on the west line of aforesaid 90.00-acre tract and east line of a called 117.9-acre tract of land conveyed to CET Limited in C.F. No. 2000080890 of the O.P.R.R.P.M.C.;

3. Thence, with said common line, North 32 degrees 46 minutes 10 seconds West, at a distance of 1,268.21 feet passing the northwest corner of said 90.00-acre tract and southwest corner of aforesaid 60.00-acre tract, at a distance of 1,970.32 feet passing the northeast corner of said 117.9-acre tract and southeast corner of a called 156.0-acre tract of land conveyed to ABE Limited in C.F. No. 2000080888 of the O.P.R.R.P.M.C., at a distance of 2,153.90 feet passing the northwest corner of said 60.00-acre tract and southwest corner of aforesaid 141.2-acre tract, at a distance of 2,484.53 passing the north line of aforesaid Joseph House Survey and the south line of aforesaid Ransom House Survey, continuing in all a total distance of 3,886.77 feet to the northwest corner of said 141.2-acre tract and northeast corner of said 156.0-acre tract, same being on the south right-of-way line of Loop 336 (varying width) as recorded in C.F. No. 8715615 of the O.P.R.R.P.M.C.;

Thence, with said south right-of-way line of Loop 336, the following four (4) courses:

4. 1,393.69 feet along the arc of a curve to the left, said curve having a central angle of 27 degrees 04 minutes 07 seconds, a radius of 2,950.00 feet and a chord that bears North 59 degrees 41 minutes 26 seconds East, a distance of 1,380.77 feet;

5. Thence, continuing with said south right-of-way line, North 46 degrees 09 minutes 22 seconds East, a distance of 371.99 feet;

6. 717.54 feet along the arc of a curve to the right, said curve having a central angle of 16 degrees 04 minutes 08 seconds, a radius of 2,558.50 feet and a chord that bears North 54 degrees 11 minutes 26 seconds East, a distance of 715.19 feet;

7. North 62 degrees 13 minutes 30 seconds East, a distance of 399.39 feet to the most westerly end of a 100-foot cutback located at the intersection of the said south right-of-way line and the west right-of-way line of a portion of aforesaid F.M. 1314 (150 feet wide per widening) as recorded in C.F. No. 8715615 of the O.P.R.R.P.M.C.;

Thence, with said west right-of-way line of F.M. 1314, the following three (3) courses:

8. South 72 degrees 46 minutes 30 seconds East, a distance of 141.42 feet;

9. South 27 degrees 46 minutes 30 seconds East, a distance of 50.00 feet;

10. South 30 degrees 18 minutes 35 seconds East, a distance of 565.28 feet to the southerly corner of aforesaid widening tract and being in the former west right-of-way line of said F.M. 1314 (100 feet wide);

11. Thence, continuing with said west right-of-way line, 688.62 feet along the arc of a curve to the left, said curve having a central angle of 06 degrees 49 minutes 36 seconds, a radius of 5,779.58 feet and a chord that bears South 31 degrees 11 minutes 18 seconds East, a distance of 688.21 feet;

12. Thence, continuing with said west right-of-way line, South 34 degrees 36 minutes 06 seconds East, at a distance of 628.35 feet passing the south line of aforesaid Ransom House Survey and north line of aforesaid Theodore Slade Survey, at a distance of 1,147.45 feet passing the southeast corner of aforesaid 141.2-acre tract and northeast corner of aforesaid 60.00-acre tract, at a distance of 2,041.48 feet passing the southeast corner of said 60.00-acre tract and northeast corner of aforesaid 90.00-acre tract, continuing in all a total distance of 3,200.86 feet;

13. Thence, continuing with said west right-of-way line, 114.49 feet along the arc of a curve to the left, said curve having a central angle of 02 degrees 15 minutes 02 seconds, a radius of 2,914.79 feet and a chord that bears South 35 degrees 43 minutes 51 seconds East, a distance of 114.48 feet to the Point of Beginning and containing 287.74 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 7931A, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7931A.0306 to read as follows:

Sec. 7931A.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.

* * * * *