By: Nichols S.B. No. 1965

(In the Senate - Filed March 26, 2007; March 27, 2007, read first time and referred to Committee on Intergovernmental Relations; April 12, 2007, reported favorably by the following vote: Yeas 4, Nays 0; April 12, 2007, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility District No. 121; providing authority to impose a tax and issue bonds; granting the power of eminent domain.

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 8211 to read as follows:

CHAPTER 8211. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 121

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8211.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Montgomery County Municipal Utility District No. 121.

Sec. 8211.002. NATURE OF DISTRICT. (a) The district is a municipal utility district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(b) The district, to the extent authorized by Section 8211.103 and Section 52, Article III, Texas Constitution, has road powers.

Sec. 8211.003. CONFIRMATION ELECTION REQUIRED. The board shall hold an election to confirm the creation of the district as provided by Section 49.102, Water Code.

Sec. 8211.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. All land and other property in the district will benefit from the improvements and services to be provided by the district.

Sec. 8211.005. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the Act creating this chapter form a closure. A mistake 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 a purpose for which the district is created or to pay the principal of and interest on the bond;

(3) right to impose an assessment or tax; or

(4) legality or operation.

[Sections 8211.006-8211.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8211.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Directors serve staggered four-year terms.

Sec. 8211.052. INITIAL DIRECTORS. (a) The initial board consists of:

(1) James D. Pell;

(2) Jeff Beard;

(3) Ed Jones;

(4) Vicki Fullerton; and

(5) Sandi La Plant.

(b) Unless the initial board agrees otherwise, the initial directors shall draw lots to determine which two shall serve until the first regularly scheduled election of directors and which three shall serve until the second regularly scheduled election of directors.

(c) This section expires September 1, 2014.

[Sections 8211.053-8211.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8211.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 8211.102. 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. 8211.103. ROAD PROJECTS. (a) Under Section 52, Article III, Texas Constitution, the district may finance, construct, or acquire a road project as provided by this section.

(b) The district shall employ or contract with a licensed engineer to certify whether a proposed road project meets the criteria for a thoroughfare, arterial, or collector road of:

(1) a county in whose jurisdiction the proposed road project is located; or

(2) a municipality in whose corporate limits or extraterritorial jurisdiction the proposed road project is located.

(c) The district may finance, construct, or acquire a road that has been certified by the licensed engineer as a thoroughfare, arterial, or collector road, or any improvements in aid of the certified road.

(d) A road project must be located:

(1) in the district; or

(2) in another municipal utility district that serves a master planned community the district also serves.

(e) A road project must meet all applicable standards, regulations, ordinances, or orders of:

(1) each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located; and

(2) each county in which the road project is located if the road project is not located in the corporate limits of a municipality.

(f) The district may, with the consent of the municipality or county, convey a completed road project to:

(1) a municipality in whose corporate limits or extraterritorial jurisdiction the road project is located; or

(2) a county in which the road project is located.

Sec. 8211.104. COMPLIANCE WITH MUNICIPAL CONSENT RESOLUTION. The district shall comply with all applicable requirements of any resolution, adopted by the governing body of a municipality under Section 54.016, Water Code, that consents to the creation of the district or to the inclusion of land in the district.

Sec. 8211.105. RECREATIONAL FACILITIES; LIMIT ON EMINENT DOMAIN POWER. (a) In this section, "recreational facilities" and "develop and maintain" have the meanings assigned by Section 49.462, Water Code.

(b) The district may develop and maintain recreational facilities.

(c) The district may not, for the development or maintenance of a recreational facility, acquire by condemnation land, an easement, or other property inside or outside the district.

[Sections 8211.106-8211.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8211.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The district may issue, without an election, bonds and other obligations secured by revenue or contract payments from a source other than ad valorem taxation.

(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 district voters voting at an election held for that purpose.

Sec. 8211.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8211.151, the district may impose an operation and maintenance tax on taxable property in the district as provided by Chapter 49.107, Water Code.

(b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election.

[Sections 8211.153-8211.200 reserved for expansion]

SUBCHAPTER E. BONDS

Sec. 8211.201. 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, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose.

Sec. 8211.202. BONDS FOR ROAD PROJECTS. At the time of issuance, the total principal amount of a bond, note, or other obligation issued or incurred to finance a road project may not exceed one-fourth of the assessed value of real property in the district according to the most recent certified tax appraisal roll for Montgomery County.

Sec. 8211.203. BONDS FOR RECREATIONAL FACILITIES. If authorized at an election under Section 8211.151, the district may issue bonds payable from ad valorem taxes to pay for the development and maintenance of recreational facilities.

Sec. 8211.204. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued:

(1) the board shall impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part of the bonds are outstanding; and

(2) the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to:

(A) pay the interest on the bonds or other obligations as the interest becomes due;

(B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and

(C) pay the expenses of imposing the taxes.

SECTION 2. The Montgomery County Municipal Utility District No. 121 initially includes all the territory contained in the following area: Being 503.169 acres of land located in the Archibald Hodge Survey, Abstract 18, the James Pevehouse Survey, Abstract 29, and the James Hodge Survey, Abstract 19, Montgomery County, Texas, more particularly being a portion of that certain called 934.56 acre tract (described as Tract I) conveyed to Woodforest Partners, L.P., by instrument of record under File No. 2006-103723, Official Public Records of Real Property at Montgomery County, Texas (M.C.O.P.R.R.P.), a portion of that certain called 379.05 acre tract conveyed to Woodforest Partners, L.P., by instrument of record under File No. 2006-138302, M.C.O.P.R.R.P., and a portion of that certain called 79.964 acre tract conveyed to Woodforest Partners, L.P., by instrument of record under File No. 2006-138300, M.C.O.P.R.R.P.; said 508.169 acres being more particularly described by metes and bounds as follows; all bearings referenced to Fish Creek Thoroughfare Phase II (150-feet wide), a plat of record in Cabinet P, Sheets 62-63, Map Records of Montgomery County, Texas (M.C.M.R.); Commencing at the most southerly southeast corner of aforementioned 934.56 acres; Thence, with a southerly line of said 934.56 acres North 16° 06' 05" East, 590.56 feet to a point for corner, being on the approximate Extra Territorial Jurisdiction (ETJ) line of the City of Conroe; Thence, with said approximate ETJ line, the following seven (7) courses: 1. North 14° 27' 12" West, 907.51 feet to a point for corner; 2. North 54° 27' 11" West, 1183.02 feet to a point for corner; 3. North 47° 20' 57" West, 1488.94 feet to a point for corner; 4. North 44° 27' 11" West, 1840.73 feet to a point for corner; 5. North 34° 31' 09" West, 2154.68 feet to a point for corner; 6. North 24° 27' 12" West, 1840.73 feet to a point for corner; 7. North 88° 10' 11" West, 1714.80 feet to a point for corner on the west line of aforementioned 379.05 acre tract; Thence, with said west line, North 02° 36' 31" West, 2413.24 feet to a point for corner being the northwest corner of said 379.05 acre tract; Thence, with the north line of said 379.05 acre tract, North 87° 14' 13" East, 2378.09 feet to a point for corner being the northeast corner of said 379.05 acre tract; Thence, with an easterly line of said 379.05 acre tract the following three (3) courses: 1. South 26° 58' 02" East, 1475.70 feet to a point for corner; 2. South 61° 26' 48" West, 291.13 feet to a point for corner; 3. South 03° 37' 40" East, 2383.97 feet to a point for corner being a re-entrant corner of said 379.05 acre tract; Thence, wit a northerly line of said 379.05 acre tract, North 88° 06' 57" East, at 150.88 feet pass the northwest corner of aforementioned 79.964 acre tract, and continuing with the north line of said 79.964 acre tract in all a distance of 1901.36 feet to a point for corner being the northeast corner of said 79.964 acre tract; Thence, with the east line of said 79.964 acre tract, South 03° 41' 03" East, 1991.72 feet to a point for corner being on the north line of aforementioned 934.56 acre tract, same being the common line of aforementioned James Pevehouse Survey and the James Hodge Survey; Thence, with said north line and said common survey line, North 87° 28' 47" East, 3370.54 feet to a point for corner being the northeast corner of said 934.56 acre tract; Thence, leaving said common survey line, with an easterly line of said 934.56 acre tract, the following three courses: 1. South 03° 48' 35" East, 2498.90 feet to a point for corner; 2. South 53° 30' 25" West, 944.06 feet to a point for corner; 3. South 16° 06' 05" West, 1306.36 feet to the POINT OF BEGINNING and containing 503.169 gross acres of land. SAVE AND EXCEPT however, the following tract of land: Being 5.000 acres of land situated in James Hodge Survey, Abstract 19, Montgomery County, Texas, and being a portion the aforementioned 934.56 acres, said 5.00 acres being more particularly described by metes and bounds as follows; COMMENCING at the northwest corner of aforementioned James Hodge Survey, same being the northeast corner of the Archibald Hodge Survey, A-18, Montgomery County, Texas, from which the northwest corner of aforementioned 934.56 acre tract bears North 87° 28' 47" East, 4443.02 feet; Thence, with the common line of said James Hodge Survey, and Archibald Hodge Survey, South 03° 46' 50" East, 300.00 feet to a point; Thence, leaving said common line, North 86° 13' 09" East, 3700.00 feet to the POINT OF BEGINNING; Thence, North 86° 13' 09" East, 466.69 feet to a point for corner; Thence, South 03° 46' 51" East, 466.69 feet to a point for corner; Thence, South 86° 13' 09" West, 466.69 feet to a point for corner; Thence, North 03° 46' 51" West, 466.69 feet to the POINT OF BEGINNING and containing 5.000 acres of land. Resulting a net area of 503.169 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. 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, 2007.

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