By: Creighton  S.B. No. 2163
         (In the Senate - Filed April 25, 2021; April 1, 2021, read
  first time and referred to Committee on Local Government;
  April 27, 2021, reported favorably by the following vote:  Yeas 8,
  Nays 0; April 27, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the Montgomery County Municipal Utility
  District No. 199; 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 8499 to read as follows:
  CHAPTER 8499. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 199
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8499.0101.  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. 199.
         Sec. 8499.0102.  NATURE OF DISTRICT. The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8499.0103.  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. 8499.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  8499.0103 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. 8499.0105.  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. 8499.0106.  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. 8499.0201.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8499.0202, directors
  serve staggered four-year terms.
         Sec. 8499.0202.  TEMPORARY DIRECTORS. (a) The temporary
  board consists of:
               (1)  Joshua Kelly Hancock;
               (2)  Santina Daily;
               (3)  Linda Perez;
               (4)  Sue Robinson; and
               (5)  Quency D. Perkins.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 8499.0103; or
               (2)  September 1, 2025.
         (c)  If permanent directors have not been elected under
  Section 8499.0103 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 8499.0103; 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. 8499.0301.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8499.0302.  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. 8499.0303.  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. 8499.0304.  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. 8499.0305.  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. 8499.0306.  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
  8499.0103 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)  Any new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 8499.0103.  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
  8499.0104 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. 8499.0401.  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 8499.0403.
         (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. 8499.0402.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized at an election held under Section 8499.0401, 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. 8499.0403.  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. 8499.0501.  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. 8499.0502.  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. 8499.0503.  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. 199 initially includes all the territory contained in the
  following area:
         Being 310.3 acres of land in the Soloman Brown Survey,
  Abstract 5, Montgomery County, Texas, said 310.3 acres being a
  portion of a called 40.0202 acre tract described in the deed to
  James R. Fogarty and Cheryl L. Fogarty by an instrument of record in
  Document Number 2018005474 of the Official Public Records of
  Montgomery County, Texas (M.C.O.P.R.), a portion of a called
  103.1967 acre tract described in the deed to MA Goodson
  Enterprises, Inc, by an instrument of record in File Number 9401044
  of the Official Public Records of Real Property of Montgomery
  County, Texas (M.C.O.P.R.R.P.), a portion of a called 62.5930 acre
  tract described in the deed to MA Goodson Enterprises, Inc by an
  instrument of record in File Number 9401047, M.C.O.P.R.R.P., a
  portion of a called 20 acre tract described in the deed to James R.
  Fogarty by an instrument of record in File Number 2005-085111,
  M.C.O.P.R.R.P., all of the remainder of a called 29.881 acre tract
  described in the deed to James R. Fogarty and Cheryl L. Fogarty by
  an instrument of record in Document Number 9401042, M.C.O.P.R., all
  of a called 40.074 acre tract described in the deed to James R.
  Fogarty by an instrument of record in File Number 2007-035819,
  M.C.O.P.R.R.P., all a called 16.706 acre tract described in the
  deed to Seung Teak Yoo and Sood Hee Yoo by an instrument of record in
  File Number 2007-081356, M.C.O.P.R.R.P., and all of the remainder
  of a called 61.39 acre tract described in the deed to Christine
  Lewis-Lyman by an instrument of record in File Number 2000-063284,
  M.C.O.P.R.R.P., said 310.3 acre tract being more particularly
  described by metes and bounds as follows (Bearings based on said
  40.0202 acre tract);
  BEGINNING at the northeast corner of said 29.881-acre tract;
  Thence, along the east line of said 29.881-acre tract the following
  two (2) courses:
         1.  South 01° 07' 23" East, 111.60 feet to a point for corner;
         2.  South 00° 02' 23" East, 1,418.50 feet to the northeast
  corner of a called 2.003-acre tract described in the deed to James
  R. Fogarty and Senie Paulette Fogarty by an instrument of record in
  File Number 9721964, M.C.O.P.R.R.P.;
  Thence, along the north and west line of said 2.003-acre tract the
  following three (3) courses:
         1.  South 89° 53' 52" West, 310.90 feet to a point for corner;
         2.  South 33° 32' 08" East, 263.98 feet to a point for corner;
         3.  South 16° 14' 02" West, 185.49 feet to the southwest
  corner of said 2.003 acre tract, same being on the north line of a
  called 52.8273 acre tract described in the deed to John W. Caveness
  and Connie M. Caveness by an instrument of record in File Number
  2000-096833, M.C.O.P.R.R.P.;
  Thence, along the north and west lines of said 52.8273-acre tract
  the following two (2) courses:
         1.  North 88° 13' 49" West, 460.67 feet to a point for corner
  on the east line of the aforementioned 103.1967-acre tract;
         2.  South 00° 07' 22" East, along the east line of said
  103.1967-acre tract, 854.94 feet the northeast corner of the
  aforementioned 40.0202-acre tract;
  Thence, along the north, and east line of said 40.0202-acre tract
  the following eight (8) courses:
         1.  North 89° 59' 04" East, 616.71 feet to a point for corner;
         2.  North 00° 11' 41" West, 203.03 feet to a point for corner;
         3.  North 89° 59' 04" East, 59.61 feet to a point for corner;
         4.  South 00° 02' 44" East, 100.03 feet to a point for corner;
         5.  North 88° 12' 49" West, 1.00 feet to a point for corner;
         6.  South 00° 11' 41" East, 500.34 feet to a point for corner;
         7.  South 00° 16' 14" East, 1,185.29 feet to a point for
  corner;
         8.  South 00° 45' 09" West, 228.66 feet to a point for corner;
  Thence, South 66° 54' 29" West, departing the east line of said
  40.0202 acre tract and across said 40.0202 acre tract, the
  aforementioned 103.1967 acre tract, the aforementioned 62.5930
  acre tract, and the aforementioned 20 acre tract, 3,145.13 feet to a
  point for corner on the west line of said 20 acre tract;
  Thence, North 00° 10' 05" West, along the west line of said 20-acre
  tract, 830.64 feet to the northwest corner of said 20 acre tract,
  same being on the west line of the aforementioned 61.39 acre tract;
  Thence, along the west line of said 61.39-acre tract the following
  two (2) courses:
         1.  North 00° 10' 05" West, 1,764.87 feet to a point for
  corner;
         2.  North 02° 02' 55" East, 942.94 feet to the northwest
  corner of said 61.39-acre tract, same being the southwest corner of
  the aforementioned 16.706-acre tract;
  Thence, along the west and north lines of said 16.706-acre tract the
  following eight (8) courses:
         1.  North 00° 44' 18" East, 643.03 feet to a point for corner;
         2.  South 89° 51' 13" East, 99.90 feet to a point for corner;
         3.  North 00° 44' 18" East, 146.55 feet to a point for corner;
         4.  South 88° 53' 29" West, 350.80 feet to a point for corner;
         5.  North 00° 37' 44" East, 60.02 feet to a point for corner;
         6.  North 88° 53' 29" East, 250.97 feet to a point for corner;
         7.  North 00° 44' 18" East, 285.92 feet to a point for corner;
         8.  South 88° 57' 25" East, 641.64 feet to the northeast
  corner of said 16.706-acre tract, same being on the west line of the
  aforementioned 40.074-acre tract;
  Thence, along the west and north lines of said 40.074-acre tract the
  following three (3) courses:
         1.  North 00° 44' 18" East, 1,133.33 feet to a point for
  corner;
         2.  North 89° 51' 31" East, 38.98 feet to a point for corner;
         3.  North 89° 56' 48" East, 722.00 feet to the northeast
  corner of said 40.074-acre tract, same being the northwest corner
  of the aforementioned 103.1967-acre tract;
  Thence, along the north line of said 103.1967-acre tract, the
  following two (2) courses:
         1.  North 89° 16' 55" East, 215.01 feet to a point for corner;
         2.  North 89° 27' 57" East, 535.44 feet to the northeast
  corner of said 103.1967-acre tract, same being the northwest corner
  of the aforementioned 29.881-acre tract;
  Thence, along the north line of said 29.881-acre tract the
  following two (2) courses:
         1.  North 89° 27' 57" East, 200.34 feet to a point for corner;
         2.  North 88° 40' 09" East, 478.07 feet to the POINT OF
  BEGINNING and containing 310.3 acres of land.
         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
  8499, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 8499.0307 to read as follows:
         Sec. 8499.0307.  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.
 
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