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relating to the creation of the Montgomery County Municipal Utility |
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District No. 144; granting a limited power of eminent domain; |
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providing authority to issue bonds; providing authority to impose |
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assessments, fees, and taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 7953 to read as follows: |
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CHAPTER 7953. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 144 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 7953.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(3) "Director" means a board member. |
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(4) "District" means the Montgomery County Municipal |
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Utility District No. 144. |
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Sec. 7953.002. NATURE OF DISTRICT. The district is a |
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municipal utility district created under Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 7953.003. CONFIRMATION AND DIRECTORS' ELECTION |
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REQUIRED. The temporary directors shall hold an election to |
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confirm the creation of the district and to elect five permanent |
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directors as provided by Section 49.102, Water Code. |
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Sec. 7953.004. CONSENT OF MUNICIPALITY REQUIRED. The |
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temporary directors may not hold an election under Section 7953.003 |
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until each municipality in whose corporate limits or |
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extraterritorial jurisdiction the district is located has |
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consented by ordinance or resolution to the creation of the |
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district and to the inclusion of land in the district. |
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Sec. 7953.005. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. |
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(a) The district is created to serve a public purpose and benefit. |
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(b) The district is created to accomplish the purposes of: |
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(1) a municipal utility district as provided by |
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general law and Section 59, Article XVI, Texas Constitution; and |
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(2) Section 52, Article III, Texas Constitution, that |
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relate to the construction, acquisition, improvement, operation, |
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or maintenance of macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7953.006. INITIAL DISTRICT TERRITORY. (a) The |
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district is initially composed of the territory described by |
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Section 2 of the Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake made in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to issue any type of bond for the purposes |
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for which the district is created or to pay the principal of and |
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interest on a bond; |
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(3) right to impose a tax; or |
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(4) legality or operation. |
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Sec. 7953.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT |
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REINVESTMENT ZONE. (a) The district is eligible to be included in |
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a tax increment reinvestment zone created under Chapter 311, Tax |
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Code. |
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(b) If the City of Conroe has created or creates a tax |
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increment reinvestment zone described by Subsection (a) that |
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includes all or part of the territory of the district, the City of |
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Conroe and the board of directors of the zone or a developer of |
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property within the tax increment reinvestment zone that receives |
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or will receive money from the tax increment fund, by contract with |
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the district, may grant money to the district from the tax increment |
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fund to be used for a permissible purpose of the district, |
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including: |
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(1) the right to pledge the money as security for a |
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bond or other obligation issued by the district; and |
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(2) any permissible purpose of a corporation under |
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Section 380.002(b), Local Government Code. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 7953.051. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of five elected directors. |
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(b) Except as provided by Section 7953.052, directors serve |
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staggered four-year terms. |
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Sec. 7953.052. TEMPORARY DIRECTORS. (a) On or after the |
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effective date of the Act enacting this chapter, the owner or owners |
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of a majority of the assessed value of the real property in the |
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district may submit a petition to the commission requesting that |
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the commission appoint as temporary directors the five persons |
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named in the petition. The commission shall appoint as temporary |
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directors the five persons named in the petition. |
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(b) Temporary directors serve until the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7953.003; or |
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(2) the fourth anniversary of the effective date of |
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the Act enacting this chapter. |
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(c) If permanent directors have not been elected under |
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Section 7953.003 and the terms of the temporary directors have |
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expired, successor temporary directors shall be appointed or |
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reappointed as provided by Subsection (d) to serve terms that |
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expire on the earlier of: |
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(1) the date permanent directors are elected under |
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Section 7953.003; or |
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(2) the fourth anniversary of the date of the |
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appointment or reappointment. |
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(d) If Subsection (c) applies, the owner or owners of a |
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majority of the assessed value of the real property in the district |
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may submit a petition to the commission requesting that the |
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commission appoint as successor temporary directors the five |
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persons named in the petition. The commission shall appoint as |
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successor temporary directors the five persons named in the |
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petition. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 7953.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 7953.102. MUNICIPAL UTILITY DISTRICT POWERS AND |
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DUTIES. The district has the powers and duties provided by the |
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general law of this state, including Chapters 49 and 54, Water Code, |
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applicable to municipal utility districts created under Section 59, |
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Article XVI, Texas Constitution. |
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Sec. 7953.103. AUTHORITY FOR ROAD PROJECTS. Under Section |
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52, Article III, Texas Constitution, the district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 7953.104. ROAD STANDARDS AND REQUIREMENTS. (a) A |
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road project must meet all applicable construction standards, |
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zoning and subdivision requirements, and regulations of each |
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municipality in whose corporate limits or extraterritorial |
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jurisdiction the road project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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Sec. 7953.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE |
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OR RESOLUTION. (a) The district shall comply with all applicable |
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requirements of any ordinance or resolution that is adopted under |
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Section 54.016 or 54.0165, Water Code, and that consents to the |
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creation of the district or to the inclusion of land in the |
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district. |
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(b) In addition to all the rights and remedies provided by |
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other law, if the district violates the terms of an ordinance or |
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resolution described by Subsection (a), the municipality is |
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entitled to injunctive relief or a writ of mandamus issued by a |
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court requiring the district and the district's officials to |
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observe and comply with the terms of the ordinance or resolution. |
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Sec. 7953.106. EFFECT OF ANNEXATION BY CITY OF CONROE. |
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(a) The City of Conroe may annex all or part of the district into |
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its corporate limits without annexing the entire district under the |
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terms of a development agreement between the City of Conroe and the |
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owners of the land in the district that is covered by the |
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development agreement. If a development agreement is not executed |
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or the agreement has expired, nothing in this chapter limits the |
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right of the City of Conroe to annex the district. |
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(b) If the City of Conroe annexes all or part of the district |
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into its corporate limits: |
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(1) the district is not dissolved; |
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(2) the ability of the district to issue bonds is not |
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impaired or precluded; and |
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(3) unless otherwise approved by the board and the |
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governing body of the City of Conroe, the city: |
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(A) may not take over the property or other |
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assets of the district; |
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(B) may not assume any debts, liabilities, or |
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other obligations of the district; |
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(C) is not obligated to perform any functions of |
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the district; and |
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(D) is not obligated to pay a landowner or |
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developer for expenses incurred by the landowner or developer in |
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connection with the district that would otherwise be eligible for |
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reimbursement from the proceeds of bonds issued by the district. |
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(c) Notwithstanding Section 54.016(f)(2), Water Code, an |
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allocation agreement between the City of Conroe and the district |
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that provides for the allocation of the taxes or revenues of the |
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district and the city following the date of inclusion of all the |
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district's territory in the corporate limits of the city may |
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provide that the total annual ad valorem taxes collected by the city |
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and the district from taxable property in the district may exceed |
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the city's ad valorem tax on that property. |
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Sec. 7953.107. LIMITATION ON USE OF EMINENT DOMAIN. The |
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district may not exercise the power of eminent domain outside the |
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district without the written consent of the City of Conroe. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 7953.151. ELECTIONS REGARDING TAXES OR BONDS. |
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(a) The district may issue, without an election, bonds and other |
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obligations secured by revenue other than ad valorem taxes. |
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(b) The district must hold an election in the manner |
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provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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before the district may impose an ad valorem tax or issue bonds |
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payable from ad valorem taxes. |
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(c) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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Sec. 7953.152. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election held under Section 7953.151, the district |
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may impose an operation and maintenance tax on taxable property in |
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the district in accordance with Section 49.107, Water Code. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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Sec. 7953.201. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS. The district may issue bonds or other obligations |
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payable wholly or partly from ad valorem taxes, impact fees, |
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revenue, contract payments, tax increment payments, grants, or |
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other district money, or any combination of those sources, to pay |
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for any authorized district purpose. |
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Sec. 7953.202. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct ad valorem tax, without limit as to rate or amount, while all |
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or part of the bonds are outstanding as required and in the manner |
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provided by Sections 54.601 and 54.602, Water Code. |
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Sec. 7953.203. BONDS FOR ROAD PROJECTS. At the time of |
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issuance, the total principal amount of bonds or other obligations |
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issued or incurred to finance road projects and payable from ad |
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valorem taxes may not exceed one-fourth of the assessed value of the |
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real property in the district. |
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SECTION 2. The Montgomery County Municipal Utility District |
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No. 144 initially includes all the territory contained in the |
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following area: |
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BEING a 186.839 acre tract of land (8,138,702 square feet) located |
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in the J. Hodge Survey, A- 19, Montgomery County, Texas, same said |
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tract being a portion of a called 553.735 acre partition tract |
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conveyed to Mallie Duff Hunt, et. al. and described as Exhibit "A" |
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in a Partition Deed recorded in Clerk's File Number 2003-124388 of |
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the Official Public Records of Real Property of Montgomery County, |
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Texas (OPRRPMC). Said 186.839 acre tract being more fully described |
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as follows, all bearings based on the Texas Coordinate System, |
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Central Zone (4203), NAD-83 (NA 2011) epoch 2010.00: |
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BEGINNING: At a found 3/4 inch iron pipe at the southeast corner of |
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said 553.735 acre tract of land, same being an interior corner of |
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Carriage Hills Section One Subdivision, recorded in Cabinet B, |
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Sheet 127 B of the Plat Records of Montgomery County, Texas (MCPR), |
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and on the common survey line of the C. Dugart Survey, A-170, and |
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the J. Hodge Survey, A-19; |
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THENCE:S 85°10'04" W, along and with the south line of said 553.735 |
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acre tract, the above mentioned common survey line, at 1,059.15 |
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feet, the northwest corner of the aforementioned C. Dugart Survey |
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A-170, and the northeast corner of the D. Thomas Survey, A-550, from |
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which a found 1/2 inch iron rod bears N 2°36'29" W, a distance of |
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8.95 feet, for the apparent lower northwest corner of said Carriage |
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Hills Section One Subdivision, and the apparent northeast corner of |
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Red Oak Ranch Section One, recorded in Cabinet I, Sheet 200-201 of |
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the Map Records of Montgomery County, Texas (MCMR), and continuing |
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along and with the south line of said 553.735 acre tract, the common |
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survey line of said J. Hodge Survey, A-19 and the D. Thomas Survey, |
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A-550, in all a total distance of 1,571.14 feet to a found 5/8 inch |
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iron rod which bears S 02°59'59" E, a distance of 0.16 feet from the |
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southwest corner of said 553.735 acre tract, same being the |
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southeast corner of a 123.052 acre tract conveyed to |
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Lawrence-Hunt-Thomas Interests, LTD. and described in a Partition |
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Deed as Exhibit "C", recorded in Clerk's File Number 2003-124388 |
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(OPRRPMC). |
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THENCE:N 02°59'59" W, departing the south line of said 553.735 acre |
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tract, the common survey line, over and across said 553.735 acre |
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tract, at 10.26 feet passing the apparent north line of said Red Oak |
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Ranch Section One, in all a total distance of 4,504.60 feet to a |
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found 1/2 inch iron rod in the south line of a 60-foot wide road |
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easement recorded in Clerk's File Numbers 2003-124388 and |
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2003-131296 (OPRRPMC). |
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THENCE:N 43°19'31" E, along and with the south line of said 60-foot |
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wide road easement a distance of 2,137.34 feet to a found 1/2 inch |
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iron rod on the west line of Carriage Hills Subdivision, Sections |
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Two and Three, recorded in Cabinet B, Page 191 B (MCPR). |
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THENCE:S 03°14'10" E, along and with the west line of said Carriage |
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Hills Subdivision, Sections One, Two and Three, a distance of |
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5,930.39 feet to the POINT OF BEGINNING, and containing 186.839 |
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acres of land, which includes 0.221 of an acre of land between the |
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apparent south line of this tract and the platted north lines of the |
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aforementioned Carriage Hills Subdivision Section One, and Red Oak |
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Ranch Subdivision |
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SECTION 3. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 4. (a) Section 7953.107, Special District Local |
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Laws Code, as added by Section 1 of this Act, takes effect only if |
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this Act receives a two-thirds vote of all the members elected to |
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each house. |
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(b) If this Act does not receive a two-thirds vote of all the |
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members elected to each house, Subchapter C, Chapter 7953, Special |
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District Local Laws Code, as added by Section 1 of this Act, is |
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amended by adding Section 7953.107 to read as follows: |
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Sec. 7953.107. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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(c) This section is not intended to be an expression of a |
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legislative interpretation of the requirements of Section 17(c), |
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Article I, Texas Constitution. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1005 passed the Senate on |
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May 8, 2015, by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1005 passed the House on |
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May 22, 2015, by the following vote: Yeas 140, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |