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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the powers and duties of Montgomery County Municipal  | 
      
      
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        Utility District No. 101. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Subchapter C, Chapter 8120, Special District  | 
      
      
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        Local Laws Code, is amended by adding Section 8120.106 to read as  | 
      
      
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        follows: | 
      
      
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               Sec. 8120.106.  DIVISION OF DISTRICT.  (a)  The district may  | 
      
      
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        be divided into two or more new districts only if the district: | 
      
      
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                     (1)  has no outstanding bonded debt; and | 
      
      
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                     (2)  is not imposing ad valorem taxes. | 
      
      
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               (b)  This chapter applies to any new district created by the  | 
      
      
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        division of the district, and a new district has all the powers and  | 
      
      
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        duties of the district. | 
      
      
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               (c)  Any new district created by the division of the district  | 
      
      
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        may not, at the time the new district is created, contain any land  | 
      
      
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        outside the area described by Section 2 of the Act enacting this  | 
      
      
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        chapter. | 
      
      
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               (d)  The board, on its own motion or on receipt of a petition  | 
      
      
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        signed by the owner or owners of a majority of the assessed value of  | 
      
      
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        the real property in the district, may adopt an order dividing the  | 
      
      
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        district. | 
      
      
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               (e)  The board may adopt an order dividing the district  | 
      
      
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        before or after the date the board holds an election under Section  | 
      
      
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        8120.023 to confirm the district's creation. | 
      
      
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               (f)  An order dividing the district must: | 
      
      
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                     (1)  name each new district; | 
      
      
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                     (2)  include the metes and bounds description of the  | 
      
      
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        territory of each new district; | 
      
      
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                     (3)  appoint temporary directors for each new district;  | 
      
      
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        and | 
      
      
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                     (4)  provide for the division of assets and liabilities  | 
      
      
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        between or among the new districts. | 
      
      
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               (g)  On or before the 30th day after the date of adoption of  | 
      
      
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        an order dividing the district, the district shall file the order  | 
      
      
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        with the commission and record the order in the real property  | 
      
      
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        records of each county in which the district is located. | 
      
      
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               (h)  Any new district created by the division of the district  | 
      
      
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        shall hold a confirmation and directors' election as required by  | 
      
      
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        Section 8120.023. | 
      
      
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               (i)  Municipal consent to the creation of the district and to  | 
      
      
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        the inclusion of land in the district acts as municipal consent to  | 
      
      
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        the creation of any new district created by the division of the  | 
      
      
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        district and to the inclusion of land in the new district. | 
      
      
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               (j)  Any new district created by the division of the district  | 
      
      
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        must hold an election as required by law to obtain voter approval  | 
      
      
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        before the district may impose a maintenance tax or issue bonds  | 
      
      
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        payable wholly or partly from ad valorem taxes. | 
      
      
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               (k)  If the creation of the new district is confirmed, the  | 
      
      
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        new district shall provide the election date and results to the  | 
      
      
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        commission. | 
      
      
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               SECTION 2.  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, 2019. |