86R12381 AAF-F

By: Nichols S.B. No. 2528

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility District No. 176 of Montgomery County; 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 8084 to read as follows:

CHAPTER 8084. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.

176 OF MONTGOMERY COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8084.0101. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Willis, Texas.

(3) "Commission" means the Texas Commission on Environmental Quality.

(4) "Director" means a board member.

(5) "District" means the Montgomery County Municipal Utility District No. 176 of Montgomery County.

Sec. 8084.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

Sec. 8084.0103. 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. 8084.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8084.0103 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. 8084.0105. 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. 8084.0106. 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.

Sec. 8084.0107. EFFECT OF ANNEXATION. Notwithstanding any other law, if any of the territory of the district is annexed by the city into the city's corporate limits, the district:

(1) retains all of the district's outstanding debt and obligations; and

(2) is not dissolved.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8084.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Except as provided by Section 8084.0202, directors serve staggered four-year terms.

Sec. 8084.0202. TEMPORARY DIRECTORS. (a) On or after September 1, 2019, 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 8084.0103; or

(2) September 1, 2023.

(c) If permanent directors have not been elected under Section 8084.0103 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 8084.0103; 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. 8084.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 8084.0302. 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. 8084.0303. 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. 8084.0304. 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. 8084.0305. 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. 8084.0401. 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 8084.0403.

(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. 8084.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8084.0401, 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. 8084.0403. 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. 8084.0501. 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. 8084.0502. 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. 8084.0503. 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. 176 of Montgomery County initially includes all the territory contained in the following area: MUD PARCEL NO. 1 Being 294.27 acres (12,818,448 square feet) tract of land situated in the G.W. Lonis Survey, Abstract 313 and F.K. Henderson Survey, Abstract 248 of Montgomery County, Texas, said 294.27 acre parcel more particularly described by metes and bounds as follows with all bearings based on Texas State Plane Coordinate System, Central Zone, North American Datum 1983; BEGINNING at a point whose Northing is 10,150,276.69 and whose Easting is 3,822,867.80; THENCE South 18°01'05" East, a distance of 335.13 feet to a calculated point; THENCE North 71°46'15" East, a distance of 412.81 feet to a calculated point; THENCE North 17°53'50" West, a distance of 110.93 feet to a calculated point; THENCE North 70°26'59" East, a distance of 326.66 feet to a calculated point; THENCE South 18°28'09" East, a distance of 483.98 feet to a calculated point; THENCE North 71°32'00" East, a distance of 270.35 feet to a calculated point; THENCE North 71°33'06" East, a distance of 80.01 feet to a calculated point; THENCE North 18°31'42" West, a distance of 350.11 feet to a calculated point; THENCE North 71°34'38" East, a distance of 270.35 feet to a calculated point; THENCE South 18°27'32" East, a distance of 620.03 feet to a calculated point; THENCE South 71°36'03" West, a distance of 140.65 feet to a calculated point; THENCE South 18°06'06" East, a distance of 310.14 feet to a calculated point; THENCE North 71°17'17" East, a distance of 590.59 feet to a calculated point; THENCE South 18°35'47" East, a distance of 1905.31 feet to a calculated point; THENCE North 71°11'29" East, a distance of 650.94 feet to a calculated point; THENCE South 18°30'33" East, a distance of 642.81 feet to a calculated point; THENCE South 71°56'03" West, a distance of 340.71 feet to a calculated point; THENCE North 18°3'57" West, a distance of 140.00 feet to a calculated point; THENCE South 71°56'03" West, a distance of 150.00 feet to a calculated point; THENCE South 18°3'57" East, a distance of 140.00 feet to a calculated point; THENCE North 71°56'03" East, a distance of 490.71 feet to a calculated point; THENCE South 18°30'33" East, a distance of 849.33 feet to a calculated point; THENCE North 71°52'24" East, a distance of 82.85 feet to a calculated point; THENCE South 19°00'55" East, a distance of 207.61 feet to a calculated point; THENCE North 71°06'37" East, a distance of 648.85 feet to a calculated point; THENCE South 19°15'09" East, a distance of 288.24 feet to a calculated point; THENCE South 71°04'26" West, a distance of 1389.13 feet to a calculated point; THENCE South 18°28'21" East, a distance of 85.59 feet to a calculated point; THENCE along a curve to the RIGHT, having a radius of 2643.58 feet, a delta angle of 38°02'19", and whose long chord bears N 89°31°30" West, a distance of 1723.01 feet to a calculated point; THENCE along a curve to the RIGHT, having a radius of 2765.61 feet, a delta angle of 20°11'13", and whose long chord bears South 53°40'39" West, a distance of 969.34 feet to a calculated point; THENCE North 18°30'13" West, a distance of 175.85 feet to a calculated point; THENCE North 17°19'50" West, a distance of 241.94 feet to a calculated point; THENCE North 18°13'44" West, a distance of 1100.46 feet to a calculated point; THENCE North 17°19'51" West, a distance of 1399.32 feet to a calculated point; THENCE North 01°08'03" East, a distance of 105.25 feet to a calculated point; THENCE North 17°16'50" West, a distance of 692.66 feet to a calculated point; THENCE North 15°17'28" West, a distance of 707.80 feet to a calculated point; THENCE North 01°56'38" West, a distance of 414.79 feet to a calculated point; THENCE North 17°21'02" West, a distance of 150.29 feet to a calculated point; THENCE North 28°16'51" East, a distance of 56.78 feet to a calculated point; THENCE North 71°42'33" East, a distance of 453.28 to the POINT OF BEGINNING, containing 294.27 acres (12,818,448 square feet) of land in Montgomery County, Texas. MUD PARCEL NO. 2 Being 4.21 acres (183,407 square feet) tract of land situated in the F.K. Henderson Survey, Abstract 248 of Montgomery County, Texas, said 4.21 acre parcel more particularly described by metes and bounds as follows with all bearings based on Texas State Plane Coordinate System, Central Zone, North American Datum 1983; BEGINNING at a point whose Northing is 10,146,094.75 and whose Easting is 3,827,643.55; THENCE South 17°29'19" East, a distance of 718.64 feet to a calculated point; THENCE along a curve to the right, having a radius of 2645.09 feet, a delta angle of 18°19'36", and whose long chord bears North 50°23'19" West, a distance of 842.45 feet to a calculated point; THENCE North 71°05'48"" East, a distance of 457.74 feet to the POINT OF BEGINNING, containing 4.21 acres (183,407 square feet) of land in Montgomery County, Texas.

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 8084, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8084.0306 to read as follows:

Sec. 8084.0306. 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 September 1, 2019.