By: Bell (Senate Sponsor - Williams) H.B. No. 1506

(In the Senate - Received from the House May 3, 2013; May 6, 2013, read first time and referred to Committee on Intergovernmental Relations; May 10, 2013, reported favorably by the following vote: Yeas 5, Nays 0; May 10, 2013, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility District No. 106; 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 8420 to read as follows:

CHAPTER 8420. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 106

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8420.001. 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. 106.

Sec. 8420.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

Sec. 8420.003. CONFIRMATION AND DIRECTORS' 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. 8420.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8420.003 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. 8420.005. 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. 8420.006. 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. 8420.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Except as provided by Section 8420.052, directors serve staggered four-year terms.

Sec. 8420.052. 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 8420.003; 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 8420.003 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 8420.003; 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. 8420.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 8420.102. 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. 8420.103. 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. 8420.104. 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, zoning and 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. 8420.105. 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. 8420.151. 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 8420.153.

(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. 8420.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8420.151, 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. 8420.153. 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. 8420.201. 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, contract payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose.

Sec. 8420.202. 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. 8420.203. 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. 106 initially includes all the territory contained in the following area:

A TRACT OR PARCEL CONTAINING 700.9211 ACRES (30,532,123 SQUARE FEET) OF LAND IN MONTGOMERY COUNTY, TEXAS, BEING THE COMBINATION OF 4 SEPARATE TRACTS, TRACT 1 CONTAINING 653.586 ACRES BEING ALL OF THE DAVID DAVIS SURVEY, A-184, PATENT NO. 866, VOLUME 5, TRACT 2 CONTAINING 4.0966 ACRES OUT OF THE SAMUEL V. LAMOTHE SURVEY, A-333, BEING PART OF A TRACT DESCRIBED IN VOLUME 284, PAGE 452 OF THE MONTGOMERY COUNTY DEED RECORDS, TRACT 3 CONTAINING 10.9542 ACRES IN THE SAMUEL V. LAMOTHE SURVEY, A-333 OUT OF A CALLED 117.898 ACRE TRACT DESCRIBED IN VOLUME 1032, PAGE 107 OF THE MONTGOMERY COUNTY DEED RECORDS, TRACT 4 CONTAINING 32.2812 ACRES IN THE E. H. YEISER SURVEY, A-73I, BEING THE RESIDUE OF A CALLED 34.001 ACRE TRACT DESCRIBED IN VOLUME 1087, PAGE 571 OF THE MONTGOMERY COUNTY DEED RECORDS, SAID 700.9211 ACRE OVERALL TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING AT A BRASS DISK IN CONCRETE STAMPED "FLC" FOR THE SOUTHWEST CORNER OF SAID DAVID DAVIS SURVEY AND ON THE COMMON EAST LINE OF THE JOHN OWENS SURVEY, A-403, AND BEING THE COMMON NORTHWEST CORNER OF THE W. B. JACKSON SURVEY, A-293, AND BEING THE NORTHWEST CORNER OF SAID TRACT 1;

THENCE NORTH 03 DEGREES 46 MINUTES 16 SECONDS WEST, ALONG THE COMMON LINE OF THE SAID DAVID DAVIS SURVEY AND THE JOHN OWENS SURVEY, A-403 AND THE WEST LINE OF TRACT 3 A DISTANCE OF 5368.89 FEET TO THE NORTHWEST CORNER OF THE DAVID DAVIS SURVEY AND THE NORTHWEST CORNER OF TRACT 1;

THENCE NORTH 86 DEGREES 50 MINUTES 25 SECONDS EAST, ALONG THE NORTH LINE OF THE SAID DAVID DAVIS SURVEY AND THE NORTH LINE OF TRACT 3 A DISTANCE OF 4774.71 FEET TO THE SOUTHWEST CORNER OF SAID TRACT 3;

THENCE NORTH 03 DEGREES 11 MINUTES 52 SECONDS WEST, ALONG THE SOUTHERLY WEST LINE OF SAID TRACT 3 A DISTANCE OF 1014.10 FEET TO THE SOUTHERLY NORTHWEST CORNER OF SAID TRACT 3;

THENCE 86 DEGREES 51 MINUTES 06 SECONDS EAST, A DISTANCE OF 364.39 FEET TO AN INTERIOR ANGLE OF SAID TRACT 3;

THENCE NORTH 03 DEGREES 10 MINUTES 22 SECONDS WEST, A DISTANCE OF 830.13 FEET TO THE SOUTH LINE OF FM HIGHWAY 1314 FOR THE NORTHWEST CORNER OF SAID TRACT 3;

THENCE SOUTH 65 DEGREES 15 MINUTES 16 SECONDS EAST, ALONG THE SOUTHWEST LINE OF SAID FM HIGHWAY 1314 A DISTANCE OF 66.42 FEET TO AN ANGLE POINT AT THE COMMON NORTH CORNER OF TRACTS 2 AND 3;

THENCE SOUTH 66 DEGREES 27 MINUTES 58 SECONDS EAST, ALONG THE SOUTHWEST LINE OF FM HIGHWAY 1314 A DISTANCE OF 111.87 FEET TO THE NORTHEAST CORNER OF TRACT 2;

THENCE SOUTH 03 DEGREES 11 MINUTES 05 SECONDS EAST, ALONG THE EAST LINE OF TRACT 2 A DISTANCE OF 1762.81 FEET TO THE SOUTHEAST CORNER OF TRACT 2 AND THE NORTHEAST CORNER OF TRACT 1;

THENCE SOUTH 03 DEGREES 10 MINUTES 13 SECONDS EAST, ALONG THE EAST LINE OF TRACT 1 A DISTANCE OF 765.44 FEET TO THE NORTHWEST CORNER OF TRACT 4;

THENCE NORTH 82 DEGREES 35 MINUTES 32 SECONDS EAST, ALONG THE NORTH LINE OF TRACT 4 A DISTANCE OF 2206.07 FEET TO A 5/8 INCH IRON ROD SET IN THE WEST LINE OF FM HIGHWAY 1314 FOR THE NORTHEAST CORNER OF SAID TRACT 4;

THENCE IN A SOUTHEASTERLY DIRECTION WITH THE WEST LINE OF FM HIGHWAY 1314 ALONG A NON TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 2211.83, AN INTERIOR ANGLE OF 18 DEGREES 47 MINUTES 23 SECONDS, A LENGTH OF 725.35 FEET, AND A CHORD BEARING SOUTH 22 DEGREES 54 MINUTES 36 SECONDS EAST, 722.10 FEET TO A BRASS DISK FOUND FOR THE SOUTHEAST CORNER OF TRACT 4;

THENCE SOUTH 87 DEGREES 12 MINUTES 13 SECONDS WEST, ALONG THE SOUTH LINE OF TRACT 4 A DISTANCE OF 776.31 FEET TO AN ANGLE POINT IN THE SOUTH LINE OF SAID TRACT 4;

THENCE SOUTH 86 DEGREES 41 MINUTES 12 SECONDS WEST, CONTINUING ALONG THE SOUTH LINE OF SAID TRACT 4 A DISTANCE OF 1667.81 FEET TO A BRASS DISK FOUND IN THE EAST LINE OF TRACT 1 FOR THE SOUTHWEST CORNER OF SAID TRACT4;

THENCE SOUTH 03 DEGREES 49 MINUTES 04 SECONDS EAST, ALONG THE EAST LINE OF TRACT 1 A DISTANCE OF 4120.26 FEET TO THE SOUTHEAST CORNER OF TRACT 1;

THENCE SOUTH 87 DEGREES 11 MINUTES 35 SECONDS WEST, ALONG THE SOUTH LINE OF TRACT 1 A DISTANCE OF 5288.02 FEET TO THE POINT OF BEGINNING AND CONTAINING 700.9211 ACRES OF LAND, MORE OR LESS.

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 8420, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8420.106 to read as follows:

Sec. 8420.106. 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. Except as provided by Section 4 of this Act:

(1) 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; and

(2) if this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.

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