H.B. No. 4651
 
 
 
 
AN ACT
  relating to the creation of the Montgomery County Municipal Utility
  District No. 203; 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 7917A to read as follows:
  CHAPTER 7917A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
  NO. 203
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7917A.0101.  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. 203.
         Sec. 7917A.0102.  NATURE OF DISTRICT. The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7917A.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. 7917A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  7917A.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. 7917A.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. 7917A.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.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 7917A.0201.  GOVERNING BODY; TERMS. (a) The district
  is governed by a board of five elected directors.
         (b)  Except as provided by Section 7917A.0202, directors
  serve staggered four-year terms.
         Sec. 7917A.0202.  TEMPORARY DIRECTORS. (a) On or after
  September 1, 2021, 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 7917A.0103; or
               (2)  September 1, 2025.
         (c)  If permanent directors have not been elected under
  Section 7917A.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 7917A.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. 7917A.0301.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7917A.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. 7917A.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. 7917A.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. 7917A.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.
         Sec. 7917A.0306.  DIVISION OF DISTRICT. (a) The district
  may be divided into two or more new districts only if the district:
               (1)  has no outstanding bonded debt; and
               (2)  is not imposing ad valorem taxes.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  A new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act enacting this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  7917A.0103 to confirm the district's creation.
         (f)  An order dividing the district shall:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint temporary directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between the new districts.
         (g)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the commission and record the order in the real property
  records of each county in which the district is located.
         (h)  A new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 7917A.0103. If the voters of a new district do not confirm
  the creation of the new district, the assets, obligations,
  territory, and governance of the new district revert to the
  original district.
         (i)  If the creation of the new district is confirmed, the
  new district shall provide the election date and results to the
  commission.
         (j)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
         (k)  Municipal consent to the creation of the district and to
  the inclusion of land in the district granted under Section
  7917A.0104 acts as municipal consent to the creation of any new
  district created by the division of the district and to the
  inclusion of land in the new district.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 7917A.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
  7917A.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. 7917A.0402.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized at an election held under Section 7917A.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. 7917A.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. 7917A.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. 7917A.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. 7917A.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. 203 initially includes all the territory contained in the
  following area:
         Being 46.673 acres (2,033,071 square feet) of land situated
  in the Montgomery County School Land Survey, A-350, Montgomery
  County, Texas and being all of a called 29.201 acre tract conveyed
  to Bali Real Estate, LLC, by Warranty Deed recorded under Clerk's
  File No. 2019110268 of the Official Public Records of Montgomery
  County, Texas (O.P.R. M.C.T.), and all of the called 18.2958 acre
  tract conveyed to Bali Real Estate, LLC, by Warranty Deed recorded
  under Clerk's File No. 2019078899 O.P.R. M.C.T., said 46.673 acres
  being more particularly described by metes and bounds as follows:
         BEGINNING at a 1/2 inch iron pipe found in the west line of
  Lot 14B, Block 2, of Chateau Woods, Section Six, according to the
  Plat of same, recorded in Volume 7, Page 275, of the Map Records of
  Montgomery County, Texas (M.R. M.C.T.), for the southeast corner of
  Chateau Woods, according to the Plat of same, recorded in Cabinet Z,
  Sheet 536 M.R. M.C.T., and the northeast corner of said 18.2958 acre
  tract;
         THENCE South 04°24'53" East, with the west line of said
  Section Six, a distance of 329.67 feet to a 5/8 inch iron rod with
  cap marked "Landpoint 10194172" set for the southwest corner of Lot
  15C, of said Section Six, and an interior corner of the herein
  described tract;
         THENCE North 85°44'01" East, with the south line of said Lot
  15C, a distance of 155.60 feet to a 5/8 inch iron rod found in the
  west right of way (R.O.W.) line of Fairview Drive (60 foot wide
  R.O.W.) for the southeast corner of said Lot 15C, and an easterly
  northeast corner of the herein described tract;
         THENCE South 03°49'04" East, with said west right of way line,
  a distance of 70.00 feet to a 5/8 inch iron rod with cap marked
  "Landpoint 10194172" set for the northeast corner of Lot 16B, of
  said Section Six and an easterly southeast corner of the herein
  described tract;
         THENCE South 85°44'01" West, with the north line of said Lot
  16B, a distance of 154.87 feet to a 5/8 inch iron rod with cap marked
  "Landpoint 10194172" set in the east line of the called 1.902 acre
  tract conveyed to Dennis E. Roach and Yvonne Roach by Warranty Deed
  recorded under Clerk's File No. 936940 O.P.R. M.C.T., for an
  interior southwest corner of the herein described tract;
         THENCE North 04°24'49" West, with the east line of said 1.902
  acre tract, a distance of 5.75 feet to a 5/8 inch iron rod found for
  the northeast corner of said 1.902 acre tract, and an interior
  corner of the herein described tract;
         THENCE South 84°35'28" West, with the easterly north line of
  said 1.902 acre tract, a distance of 167.56 feet to a 5/8 inch iron
  rod found for the northerly northwest corner of said 1.902 acre
  tract, and an interior corner of the herein described tract;
         THENCE South 00°23'18" East, with a northerly west line of
  said 1.902 acre tract a distance of 127.62 feet to a 5/8 inch iron
  rod found for an interior corner of said 1.902 acre tract;
         THENCE South 89°36'42" West, with the westerly north line of
  said 1.902 acre tract, a distance of 114.45 feet to a 5/8 inch iron
  rod found for the westerly northwest corner of said 1.902 acre tract
  and an interior corner of the herein described tract;
         THENCE South 02°14'20" East, with the west line of said 1.902
  acre tract, a distance of 122.73 feet to a 1/2 inch iron rod found
  for the southwest corner of said 1.902 acre tract;
         THENCE North 84°40'17" East, with the south line of said 1.902
  acre tract, a distance of 295.36 feet to a 5/8 inch iron rod with cap
  marked "Landpoint 10194172" set in the west line of Lot 17B, of said
  Section Six, for a northeast corner of the herein described tract;
         THENCE South 04°25'53" East, with the west line of said
  Section Six, a distance of 254.24 feet to a 5/8 inch iron rod with
  cap marked "Landpoint 10194172" set for the southwest corner of Lot
  18B of said Section Six, and an interior corner of the herein
  described tract;
         THENCE North 85°44'23" East, with the south line of said Lot
  18B, a distance of 149.71 feet to a 5/8 inch iron rod found in the
  west right of way line of said Fairview Drive for the southeast
  corner of said Lot 18B, and a northeast corner of the herein
  described;
         THENCE South 03°49'03" East, with said west right of way line,
  a distance of 70.00 feet to a 1/2 iron rod found for the northeast
  corner of Lot 19A, of said Section Six, and an easterly southeast
  corner of the herein described tract;
         THENCE South 85°44'23" West, with the north line of said Lot
  19A a distance of 148.96 feet to a 5/8 inch iron rod with cap marked
  "Landpoint 10194172" set for the northwest corner of said Lot 19A
  and an interior corner of the herein described tract;
         THENCE South 04°25'53" East, with the west line of said
  Section Six, a distance of 600.26 feet to a 5/8 inch iron rod with
  cap marked "Landpoint 10194172" set for the northeast corner of the
  called 0.2784 acre Tract 4 conveyed to William Dana Fulton, by
  Warranty Deed recorded under Clerk's File No. 2007-143377 O.P.R.
  M.C.T., for the southeast corner said 29.201 acre tract and the
  herein described tract, from which a found 1/2 inch iron rod bears
  North 87°05'51" East, a distance of 1.60 feet;
         THENCE South 87°05'51" West, with the south line of said
  29.201 acre tract, a distance of 2110.00 feet to a 5/8 inch iron rod
  with cap marked "Landpoint 10194172" set for the northwest corner
  of the remainder of a called 19.6 acre tract conveyed to Juanita Ann
  Stedman Crisp by Warranty Deed recorded in Volume 994, Page 33 of
  the Deed Records of Montgomery County, Texas (D.R. M.C.T.), and an
  interior corner of the herein described tract, from which a found 2
  inch iron rod bears North 39°42'57" West, a distance of 0.89 feet;
         THENCE North 02°54'09" West, a distance of 34.49 feet to a
  point for an interior corner of the herein described tract;
         THENCE South 86°54'05" West, a distance of 15.07 feet to a 1/2
  inch iron rod found for the southeast corner of said 3.00 acre tract
  and a southwest corner of the herein described tract;
         THENCE North 04°24'02" West, with the east line of said 3.00
  acre tract, a distance of 105.68 feet to a 5/8 inch iron rod found
  for the southwest corner of the called 2.0 acre tract conveyed to
  Julio E. Ortiz and Edgar S. Ortiz by Warranty Deed recorded under
  Clerk's File No. 2010102118 O.P.R. M.C.T. and the most westerly
  northwest corner of the herein described1.705 acre tract conveyed
  to tract;
         THENCE North 87°05'51" East, with the south line of said 2.0
  acre tract, a distance of 152.29 feet to a 5/8 inch iron rod found
  for the southeast corner of said 2.0 acre tract and an interior
  corner of the herein described tract ;
         THENCE North 02°59'46" West, with the east line of said 2.0
  acre tract, a distance of 286.50 feet to a 5/8 inch iron rod found
  for the southwest corner of the called 1.705 acre tract conveyed to
  Julio E. Ortiz and Edgar S. Ortiz by Warranty Deed recorded under
  Clerk's File No. 2010102117 O.P.R .M.C.T., and a northwest corner
  of the herein described tract;
         THENCE North 87°05'51" East, with the south line of said 1.705
  acre tract, a distance of 458.27 feet to a 5/8 inch iron rod with cap
  marked "Landpoint 10194172" set for the southeast corner of said
  1.705 acre tract and an interior corner of the herein described
  tract;
         THENCE North 03°54'02" West, with the east line of said 1.705
  acre tract, a distance of 165.76 feet to a 5/8 inch iron rod found
  for the northeast corner of same, and a northwest corner of the
  herein described tract;
         THENCE North 86°10'26" East, at 40.03 feet passing a 5/8 inch
  iron rod found for the southwest corner of a called 0.61 acre tract
  of land (Tract 10), recorded under Volume 814, Page 553 of the
  O.P.R. M.C.T., and continuing for a total distance of 279.28 feet to
  a 5/8 inch iron rod found for the southeast corner of said 0.61 acre
  tract and an interior corner of the herein described tract;
         THENCE North 03°49'30" West, with the west lines of said 0.61
  acre Tract 10, the called 0.61 acre tract conveyed to Reina Fuentes
  by Warranty Deed recorded under Clerk's File No. 2009049510
  O.P.R.M.C.T., and the called 0.61 acre tract conveyed to Jonathan
  R. Farkasofsky, by Warranty Deed recorded under Clerk's File
  No. 2009041278 O.P.R. M.C.T., a distance of 337.20 feet to a 5/8
  inch iron rod found in the south right of way line of Springwood
  Drive (60 foot wide private R.O.W.), for a northwest corner of the
  herein described tract;
         THENCE North 86°10'33" East, with the south line of said
  Springwood Drive, a distance of 473.19 feet to a 5/8 inch iron rod
  with cap marked "Landpoint 10194172" set for an interior corner of
  the herein described tract;
         THENCE North 03°49'30" West, with the east right of way line
  of said Springwood Drive, a distance of 59.97 feet to a 5/8 inch
  iron rod found in the south line of the called 0.6017 acre tract
  conveyed to Luis Martinez and Liana I. Martinez by Warranty Deed
  recorded under Clerk's File No. 2012038147 O.P.R. M.C.T., for a
  northwest corner of the herein described tract;
         THENCE North 86°09'32" East, with the south line of said
  0.6017 acre tract, a distance of 25.90 feet to a 5/8 inch iron rod
  found for the southeast corner of said 0.6017 acre tract and an
  interior corner of the herein described tract;
         THENCE North 03°49'30" West, with the east line of said 0.6017
  acre tract, a distance of 250.02 feet to a 5/8 inch iron rod with cap
  marked "Landpoint 10194172" set for the northeast corner of said
  0.6017 acre tract and an interior corner of the herein described
  tract, from which a found 5/8 inch iron rod bears South 80°23'42"
  West, a distance of 1.39 feet;
         THENCE South 86°10'34" West, with the north lines of said
  0.6017 acre tract, the called 0.61 acre tract conveyed to Rigoberto
  Ruiz and Beatriz Ruiz, by Warranty Deed recorded under Clerk's File
  No. 2010015437 O.P.R. M.C.T., and the called 0.61 acre tract
  conveyed to Luis Martinez and Liana I. Martinez, by Warranty Deed
  recorded under Clerk's File No. 2012038147 O.P.R. M.C.T. a distance
  of 314.69 feet to a 5/8 inch iron rod found in the east line of the
  called 7.3167 acre tract conveyed to James H. Giammatteo by
  Warranty Deed recorded under Clerk's File No. 2001008111 O.P.R.
  M.C.T., for the northwest corner of said 0.61 acre Martinez tract,
  and a southwest corner of the herein described tract;
         THENCE North 03°49'30" West, with the east line of said 7.3167
  acre tract, a distance of 196.49 feet to a 1 inch iron pipe found in
  the south line of the called 1.580 acre tract conveyed to James H.
  Giammatteo, Jr., by Warranty Deed recorded under Clerk's File
  No. 2008037058 O.P.R. M.C.T. for the northeast corner of said
  called 7.3167 acre tract and a northwest corner of the herein
  described tract;
         THENCE North 86°09'41" East, with the south line of said 1.580
  acre tract, a distance of 30.70 feet to a 5/8 inch iron rod found for
  the southeast corner of said 1.580 acre tract and an interior corner
  of the herein described tract;
         THENCE North 03°49'30" West, with the east line of said 1.580
  acre tract, a distance of 97.99 feet to a 1/2 inch iron pipe found in
  the south line of Block 1 of said Chateau Woods, for the northeast
  corner of said 1.580 acre tract and the most northerly northwest
  corner of said 18.2958 acre tract and the herein described tract;
         THENCE North 86°10'30" East, with the south line of said
  Chateau Woods, a distance of 1000.19 feet to the POINT OF BEGINNING,
  containing 46.673 acres (2,033,071 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
  7917A, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 7917A.0307 to read as
  follows:
         Sec. 7917A.0307.  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, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4651 was passed by the House on May 8,
  2021, by the following vote:  Yeas 108, Nays 31, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4651 on May 28, 2021, by the following vote:  Yeas 85, Nays 60,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4651 was passed by the Senate, with
  amendments, on May 27, 2021, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor