By: Bell of Montgomery (Senate Sponsor - Creighton) H.B. No. 5344
         (In the Senate - Received from the House May 10, 2023;
  May 10, 2023, read first time and referred to Committee on Local
  Government; May 15, 2023, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 0;
  May 15, 2023, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 5344 By:  Springer
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the Deer Creek Ranch Municipal Utility
  District No. 1 and the Montgomery County Municipal Utility District
  No. 236; 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.  (a) Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 7960 to read as follows:
  CHAPTER 7960. DEER CREEK RANCH MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7960.0101.  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 Deer Creek Ranch Municipal
  Utility District No. 1.
         Sec. 7960.0102.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7960.0103.  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. 7960.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  7960.0103 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 as required by
  applicable law.
         Sec. 7960.0105.  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. 7960.0106.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 1(b) of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 1(b)
  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. 7960.0201.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7960.0202, directors
  serve staggered four-year terms.
         Sec. 7960.0202.  TEMPORARY DIRECTORS.  (a)  On or after the
  effective date of the Act enacting this chapter, 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 7960.0103; or
               (2)  the fourth anniversary of the effective date of
  the Act enacting this chapter.
         (c)  If permanent directors have not been elected under
  Section 7960.0103 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 7960.0103; 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. 7960.0301.  GENERAL POWERS AND DUTIES.  The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7960.0302.  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. 7960.0303.  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. 7960.0304.  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. 7960.0305.  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. 7960.0306.  DIVISION OF DISTRICT. (a) 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.
         (b)  An order dividing a district may create one or more new
  districts and may provide for the continuation of the district.
         (c)  An order dividing the district shall:
               (1)  name any new district;
               (2)  include the metes and bounds description of the
  territory of each of the districts;
               (3)  appoint temporary directors for any new district;
  and
               (4)  provide for the division of assets and liabilities
  between the districts.
         (d)  The board may adopt an order dividing the district
  before or after the date the board holds an election to confirm the
  district's creation.
         (e)  The district may be divided only if the district:
               (1)  has never issued any bonds; and
               (2)  is not imposing ad valorem taxes.
         (f)   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 1(b) of the Act enacting this
  chapter.
         (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)  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.
         (i)  A new district created by the division of the district
  shall hold a confirmation and directors' election.
         (j)  If the creation of the new district is confirmed, the
  new district shall provide the election date and results to the
  commission.
         (k)  A 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.
         (l)  The district may continue to rely on confirmation,
  directors', bond, or tax elections held prior to the division.
         (m)  Municipal consent to the creation of the district and to
  the inclusion of land in the district 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. 7960.0401.  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 7960.0403.
         (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. 7960.0402.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7960.0401, 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. 7960.0403.  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. 7960.0501.  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. 7960.0502.  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. 7960.0503.  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.
         (b)  The Deer Creek Ranch Municipal Utility District No. 1
  initially includes all the territory contained in the following
  area:
         A 685.400 ACRE TRACT OF LAND SITUATED IN THE THOMAS POLK
  SURVEY, ABSTRACT NO. 703, THE HENRY ASKEW SURVEY, ABSTRACT NO. 35,
  ABSTRACT NO. 703, THE HENRY ASKEW SURVEY, ABSTRACT NO. 396, THE
  SAMUEL W. DAVIS SURVEY, ABSTRACT NO. 1087 AND THE SAMUEL W. DAVIS
  SURVEY, ABSTRACT NO. 165, LOCATED IN BELL COUNTY, TEXAS AND
  McCLENNAN COUNTY, TEXAS AND BEING A PORTION OF A CALLED 730.417 ACRE
  TRACT OF LAND CONVEYED TO VWB TRUST BY INSTRUMENTS RECORDED IN
  DOCUMENT NO. 20160034747 OF THE OFFICIAL PPUBLIC RECORDS OF BELL
  COUNTY, TEXAS AND IN DOCUMENT NO. 2016029961 OF THE OFFICIAL PUBLIC
  RECORDS OF McCLENNAN COUNTY, TEXAS. SAID 685.400 ACRE TRACT BEING
  MORE FULLY DESCRIBED AS FOLLOWS, WITH BEARINGS BASED ON THE NORTH
  AMERICAN DATUM OF 1983 (NA 2011) EPOCH 2010.00, FROM THE TEXAS
  COORDINATE SYSTEM ESTABLISHED FOR THE CENTRAL ZONE:
         BEGINNING at a 1/2" iron rod found on a point being the
  northeast corner of said 730.417-acre tract of land, for the
  northeast corner and POINT OF BEGINNING hereof;
         THENCE with the east boundary line of said 730.417-acre
  tract, the following three (3) courses and distances:
  1.  S 29°39'16" E for a distance of 23.01 feet to an angle point
  hereof,
  2.  S 29°37'25" E for a distance of 486.87 feet to an angle point
  hereof, and
  3.  S 29°29'03" E for a distance of 493.85 feet to a point being the
  northeast corner of a called 5.525-acre tract of land conveyed to
  Larry Pietsch et ux, by instrument recorded in Document
  No. 2010000488 of the Official Public Records of Falls County,
  Texas, for an angle point hereof;
         THENCE with the north boundary line of said 5.525-acre tract,
  the following two (2) courses and distances:
  1.  S 57°58'39" W for a distance of 542.26 feet to an angle point
  hereof, and
  2.  S 56°02'27" W for a distance of 58.49 feet to a point being the
  northwest corner of said 5.525-acre tract, for an angle point
  hereof;
         THENCE with west boundary line of said 5.525-acre tract,
  S 32°56'37" E for a distance of 396.46 feet to a point being the
  northwest corner of a called 5.075-acre tract of land conveyed to
  Larry Pietsch et ux, by instrument recorded in Document no.
  2010000485 of the Official Public Records of Falls County, Texas,
  same being the southwest corner of said 5.525-acre tract, for an
  angle point hereof;
         THENCE with the west boundary line of said 5.075-acre tract,
  S 14°23'05" E for a distance of 363.73 feet to a point being the
  southwest corner of said 5.075-acre tract for an angle point
  hereof;
         THENCE with the south boundary line of said 5.075-acre tract
  N 59°41'47" E for a distance of 143.92 feet to a point in the
  approximate west boundary line of Falls County, Texas, same being
  the approximate east boundary line of Bell County, Texas, for an
  angle point hereof;
         THENCE departing the south boundary line of said 5.075-acre
  tract with the approximate west boundary line of Falls County,
  Texas, same being the approximate east boundary line of Bell
  County, Texas and through the interior of said 730.417 acre tract,
  S 32°52'48" E for a distance of 2076.93 feet to a point in the north
  right-of-way line of County Road 498 (right-of-way width varies),
  same being the southern boundary line of said 730.417-acre tract
  for the southeast corner hereof;
         THENCE with the north right-of-way line of County Road 498,
  same being the southern boundary line of said 730.417-acre tract,
  the following six (6) courses and distances:
  1.  S 59°45'11" W for a distance of 307.98 feet to a point
  2.  S 56°40'31" W for a distance of 452.77 feet to an angle point
  hereof,
  3.  S 59°50'03" W for a distance of 818.71 feet to an angle point
  hereof,
  4.  S 59°28'26" W for a distance of 725.73 feet to an angle point
  hereof,
  5.  S 59°11'05" W for a distance of 653.72 feet to 1/2" iron rod
  found on a point, for an angle point hereof, and
  6.  S 15°31'38" W for a distance of 522.86 feet to a 1/2" iron rod
  found on a point being the northeasterly corner of a called 125-acre
  tract of land conveyed to Jackie Elizabeth Bounds, et al by
  instrument recorded on Document No. 2020014897 of the Official
  Public Records of Bell County, Texas, same being a southeasterly
  corner of said 730.417-acre tract, for a southeasterly corner
  hereof;
         THENCE with the northerly boundary line of said 125-acre
  tract, same being the southerly boundary line of said 730.417-acre
  tract, the following four (4) courses and distances:
  1.  N 68°17'07" W for a distance of 1982.29 feet to an angle point
  hereof,
  2.  S 20°13'41" W for a distance of 1194.63 feet to a 1/2" iron rod
  found on an angle point hereof,
  3.  N 70°00'40" W for a distance of 1040.46 feet to a 1/2" iron rod
  found on an angle point hereof, and
  4.  S 20°16'01" W for a distance of 913.53 feet to a point in the
  north boundary line of called 50.00-acre tract of land conveyed to
  Howard Thomas Daye and Glenda Marie Daye, by instrument recorded in
  Document No. 20085002539 of the Official Public Records of Bell
  County, Texas, same being the southwesterly corner of said 125-acre
  tract, for an angle point hereof;
         THENCE with, in part, the northerly boundary lines of: said
  50.002-acre tract, a called 9.68-acre tract conveyed to Arthur
  Poston, by instrument recorded in Volume 5990, Page 314 of the
  Probate Records of Bell County, Texas and a called 64-acre tract of
  land conveyed to John D. Price and Vi Price, by instrument recorded
  in Volume 3324, Page 204 of the Deed Records of Bell County, Texas,
  respectively, same being the southerly boundary line of said
  730.417-acre tract, N 69°43'06" W for a distance of 1577.88 feet to
  a 1/2" iron rod found on a point in the southeasterly boundary line
  of a called 89.5-acre tract of land conveyed to the H.B. Hillyard,
  Jr. and Julia I. Hillyard Revocable Living Trust, by instrument
  recorded in Volume 1845, Page 808 of the Deed Records of McClennan
  County, Texas, for an angle point hereof;
         THENCE with the southeasterly boundary line of said 89.5-acre
  tract, same being the southerly boundary line of said 730.417-acre
  tract, N 57°14'15" E for a distance of 1017.80 feet to a 1/2" iron
  rod found on a point being the northeast corner of said 89.5-acre
  tract, for an angle point hereof;
         THENCE with the northerly boundary line of said 89.5-acre
  tract, same being the southerly boundary line of said 730.417-acre
  tract, N 73°22'08" W for a distance of 2682.51 feet to a to a 1/2"
  iron rod found on a point in the easterly right-of-way of Neal Road
  (right-of-way width varies), said point being the northwest corner
  of said 89.5-acre tract, same being the southwesterly corner of
  said 730.417-acre tract, for the southwesterly corner hereof;
         THENCE with the easterly right-of-way line of said Neal Road,
  same being the westerly boundary line of said 730.417-acre tract,
  the following two (2) courses and distances:
               N 16°44'59" E for a distance of 641.51 feet to an angle
  point hereof, and
               N 16°43'27" E for a distance of 1649.96 feet to a 1/2:"
  iron rod found on a point in the southerly margin of Franklin
  Road, said point being the northwest corner of said
  730.417-acre tract, for the northwest corner hereof;
         THENCE with the southerly margin of said Franklin Road, same
  being the northwesterly boundary line of said 730.417-acre tract,
  the following three (3) courses and distances:
  1.  N 88°45'56" E for a distance of 1956.89 feet to an angle point
  hereof,
  2.  S 89°44'59" E for a distance of 1153.82 feet to a 1/2" iron rod
  found on for an angle point hereof, and
  3.  N 59°40'59" E for a distance of 1208.65 feet to an angle point
  hereof;
         THENCE departing the southerly margin of Franklin Road,
  through the interior of said 730.417-acre tract, S 61°17'12" E for a
  distance of 29.19 feet to a point being the northwesterly corner of
  a called 10.00-acre tract of land conveyed to Kimberly Worthington,
  by instrument recorded in Document No. 2021020842 of the Official
  Public Records of McClennan County, Texas, for an angle point
  hereof;
         THENCE with the westerly, southerly and easterly boundary
  lines, respectively, of said 10.00-acre tract the following twelve
  (12) courses and distances:
  1.  S 61°17'12" E for a distance of 324.55 feet to an angle point
  hereof,
  2.  N 06°20'39" E for a distance of 80.42 feet to an angle point
  hereof,
  3.  N 57°20'12" E for a distance of 81.81 feet to an angle point
  hereof,
  4.  S 23°32'20" E for a distance of 67.80 feet to an angle point
  hereof,
  5.  S 08°42'13" E for a distance of 181.25 feet to an angle point
  hereof,
  6.  N 39°25'15" E for a distance of 103.44 feet to an angle point
  hereof,
  7.  S 22°37'59" E for a distance of 186.24 feet to an angle point
  hereof,
  8.  N 57°23'30" E for a distance of 88.53 feet to an angle point
  hereof,
  9.  S 29°10'57" E for a distance of 72.30 feet to an angle point
  hereof,
  10.  N 59°40'57" E for a distance of 20.00 feet to an angle point
  hereof,
  11.  N 59°40'57" E for a distance of 489.21 feet to an angle point
  hereof, and
  12.  N 30°19'01" W for a distance of 663.75 feet to a point being the
  northeasterly corner of said 10.00-acre tract for an angle point
  hereof;
         THENCE departing the boundary line of said 10.00-acre tract,
  through the interior of said 730.417-acre tract, N 30°19'01" W for a
  distance of 25.02 feet to a point in the southerly margin of
  Franklin Road, same being the northwesterly boundary line of said
  730.417-acre tract, the following three (3) courses and distances:
  1.  N 59°40'59" E for a distance of 701.97 feet to an angle point
  hereof,
  2.  N 60°40'09" E for a distance of 1305.59 feet to an angle point
  hereof, and
  3.  N 60°36'34" E for a distance of 617.98 feet to a point to the
  POINT OF BEGINNING and containing 685.400 acres in the McClennan
  County, Texas and Bell County, Texas. Said tract being described in
  accordance with a survey prepared under Job No. 59012-22 by
  Pape-Dawson Engineers, Inc.
         (c)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 7960, Special
  District Local Laws Code, as added by Section 1(a) of this Act, is
  amended by adding Section 7960.0307 to read as follows:
         Sec. 7960.0307.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (d)  Section 1(c) of this Act is not intended to be an
  expression of a legislative interpretation of the requirements of
  Section 17(c), Article I, Texas Constitution.
         SECTION 2.  (a) Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 7968A to read as follows:
  CHAPTER 7968A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
  NO. 236
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7968A.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. 236.
         Sec. 7968A.0102.  NATURE OF DISTRICT. The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7968A.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. 7968A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section
  7968A.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 as required by
  applicable law.
         Sec. 7968A.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. 7968A.0106.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 2(b) of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2(b)
  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. 7968A.0201.  GOVERNING BODY; TERMS. (a) The district
  is governed by a board of five elected directors.
         (b)  Except as provided by Section 7968A.0202, directors
  serve staggered four-year terms.
         Sec. 7968A.0202.  TEMPORARY DIRECTORS.  (a)  On or after the
  effective date of the Act enacting this chapter, 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 7968A.0103; or
               (2)  the fourth anniversary of the effective date of
  the Act enacting this chapter.
         (c)  If permanent directors have not been elected under
  Section 7968A.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 7968A.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. 7968A.0301.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7968A.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. 7968A.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. 7968A.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. 7968A.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. 7968A.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
  7968A.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. 7968A.0402.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized at an election held under Section 7968A.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. 7968A.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. 7968A.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. 7968A.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. 7968A.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.
         (b)  Montgomery County Municipal Utility District No. 236
  initially includes all the territory contained in the following
  area:
         A 231.1123 ACRE TRACT OF LAND IN THE S. TERRY SURVEY, ABSTRACT
  NO. 564, MONTGOMERY COUNTY, TEXAS, BEING OUT OF AND A PART OF A
  CALLED 1,702.2 ACRE TRACT CONVEYED TO DAYAKAR PUSKOOR, TRUSTEE OF
  1992 GUNIGANTI CREDIT SHELTER TRUSTS, AKA THE GUNIGANTI FAMILY
  TRUSTS AS RECORDED UNDER MONTGOMERY COUNTY CLERK'S FILE NUMBER
  (M.C.C.F. NO.) 2019097078 (DESCRIBED UNDER M.C.C.F. NO.
  2012127211), THE SAID 231.1123 ACRE TRACT BEING MORE PARTICULARLY
  DESCRIBED BY METES AND BOUNDS AS FOLLOWS, (WITH BEARINGS BASED ON
  THE TEXAS COORDINATE SYSTEM OF 1983, CENTRAL ZONE, AS DETERMINED BY
  GPS MEASUREMENTS):
         COMMENCING at a 3/4-inch iron rod found marking an angle in
  the west line of said 1,702.2 acre tract, and the west line of a
  called 150.00 acre tract, conveyed to TC LB Royal Pines, LP as
  recorded under M.C.C.F. NO. 2021171601;
         THENCE, North 03°35'35" West, along the west line of said
  1,702.2 acre tract, and said 150.00 acre tract, passing at a
  distance of 10.54 feet, a found 5/8" iron rod with cap stamped
  "TERRA", passing at a distance of 874 feet, the approximate
  centerline of White Oak Creek, being the northwest corner of the
  said 150.00 acre tract, continuing along the west line of said
  1,702.2 acre tract a total distance of 4,572.60 feet, to a 1/2" iron
  rod found marking the northeast corner of Lot 6, Block 3, White Oak
  Crossing Sec 4 (WOC4), map or plat thereof recorded under Cabinet
  (Cab.) Z, Sheet (Sht.) 3640 Montgomery County Map Records
  (M.C.M.R.), and an interior corner of said 1,702.2 acre tract, and
  the herein described tract;
         THENCE, South 87°08'26" West, along the north lines of said
  WOC4, and White Oak Crossing Sec 3 (WOC3), map or plat thereof
  recorded under Cab. Z, Sht. 2286 M.C.M.R., common with the
  southerly line of said 1,702.2 acre tract and the herein described
  tract, a distance of 2,132.46 feet, to a 5/8" iron rod with cap
  stamped "HOVIS" found marking the northwest corner of Lot 19, Block
  5, of said WOC3;
         THENCE, North 07°21'12" West, departing said common line,
  over and across said WCO3, A 19.14 acre tract conveyed to Prabhakar
  R. Guniganti as recorded under M.C.C.F. NO. 2016114018, and said
  1,702.2 acre tract, a distance of 4,946.84 feet, to the west line of
  said 1,702.2 acre tract marking the southwest corner, and POINT OF
  BEGINNING of the herein described tract;
         THENCE, North 02°19'57" West, along the west line of said
  1,702.2 acre tract, passing at a distance of 7.13 feet the southerly
  Right-Of-Way (R.O.W.) line of State Highway 99 (A.K.A. Grand
  Parkway), as described in the agreed final judgement recorded under
  M.C.C.F. NO. 2022115684, passing at a distance of 407.22 feet, the
  northerly R.O.W. line of said State Highway 99, continuing a total
  distance of 2,694.43 feet, to the northwest corner of said 1,702.2
  acre tract and the herein described tract;
         THENCE, North 86°56'15" East, along the northerly line of said
  1,702.2 acre tract, a distance of 2,313.87 feet, to an angle in the
  north line of said 1,702.2 acre tract and the herein described
  tract;
         THENCE, North 88°18'37" East, along the northerly line of said
  1,702.2 acre tract, a distance of 84.62 feet, to the northeast
  corner of the herein described tract;
         THENCE, over and across said 1,702.2 acre tract, the
  following twenty nine (29) courses and distances:
         South 01°34'11" East, a distance of 523.07 feet, to an angle
  in the east line of the herein described tract;
         South 88°20'05" East, a distance of 320.48 feet, to an angle
  in the east line of the herein described tract;
         South 72°57'20" East, a distance of 524.04 feet, to an angle
  in the east line of the herein described tract;
         South 55°07'09" East, a distance of 242.85 feet, to an angle
  in the east line of the herein described tract;
         South 26°44'17" East, a distance of 274.37 feet, to an angle
  in the east line of the herein described tract;
         South 34°39'23" East, a distance of 466.61 feet, to an angle
  in the east line of the herein described tract;
         South 29°43'18" East, a distance of 94.04 feet, to an angle in
  the east line of the herein described tract;
         South 03°45'41" West, a distance of 196.73 feet, to an angle
  in the east line of the herein described tract;
         South 27°52'41" East, a distance of 382.54 feet, to an angle
  in the east line of the herein described tract;
         South 29°14'09" East, a distance of 98.06 feet, to an angle in
  the east line of the herein described tract;
         South 18°42'01" West, a distance of 156.58 feet, to an angle
  in the east line of the herein described tract;
         South 45°05'06" West, a distance of 138.46 feet, to an angle
  in the east line of the herein described tract;
         South 72°00'22" West, a distance of 171.11 feet, to an angle
  in the east line of the herein described tract;
         South 64°09'37" West, a distance of 133.85 feet, to the
  beginning of a curve to the right;
         In a southwesterly direction, along said curve to the right,
  having a radius of 3,014.66 feet, a central angle of 01°26'03"
  (chord bears South 64°04'47" West, 75.45 feet) and an arc distance
  of 75.45 feet, to the beginning of a reverse curve to the left;
         In a southwesterly direction, along said reverse curve to the
  left, having a radius of 100.00 feet, a central angle of 13°17'38"
  (chord bears South 57°47'21" West, 23.15 feet) and an arc distance
  of 23.20 feet, to the beginning of a reverse curve to the right;
         In a southwesterly direction, along said reverse curve to the
  right, having a radius of 500.00 feet, a central angle of 12°42'15"
  (chord bears South 57°29'40" West, 110.64 feet) and an arc distance
  of 110.86 feet, to the beginning of a reverse curve to the left;
         In a southwesterly direction, along said reverse curve to the
  left, having a radius of 100.00 feet, a central angle of 07°23'59"
  (chord bears South 60°08'48" West, 12.91 feet) and an arc distance
  of 12.92 feet, to the beginning of a reverse curve to the right;
         In a southwesterly direction, along said reverse curve to the
  right, having a radius of 100.00 feet, a central angle of 23°30'02"
  (chord bears South 68°11'50" West, 40.73 feet) and an arc distance
  of 41.02 feet, to the point of tangency;
         South 79°56'51" West, a distance of 52.57 feet, to the
  beginning of a curve to the right;
         In a westerly direction, along said curve to the right,
  having a radius of 100.00 feet, a central angle of 24°12'11" (chord
  bears North 87°57'04" West, 41.93 feet) and an arc distance of 42.24
  feet, to the point of compound curvature;
         In a northwesterly direction, along said compound curve to
  the right, having a radius of 500.00 feet, a central angle of
  01°07'37" (chord bears North 75°17'10" West, 9.83 feet) and an arc
  distance of 9.83 feet, to the point of reverse curvature;
         In a southwesterly direction, along said reverse curve to the
  left, having a radius of 100.00 feet, a central angle of 59°15'48"
  (chord bears South 75°38'44" West, 98.88 feet) and an arc distance
  of 103.43 feet, to the point of tangency;
         South 46°00'50" West, a distance of 240.66 feet, to an angle
  in the southerly line of the herein described tract;
         North 47°45'22" West, a distance of 351.90 feet, to the
  beginning of a curve to the right;
         In a northwesterly direction, along said curve to the right,
  having a radius of 1,250.00 feet, a central angle of 01°33'58"
  (chord bears North 46°58'23" West, 34.17 feet) and an arc distance
  of 34.17 feet, to the point of tangency;
         South 53°50'57" West, a distance of 302.10 feet, to the
  beginning of a curve to the left;
         In a southwesterly direction, along said curve to the left,
  having a radius of 2,000.00 feet, a central angle of 17°35'11"
  (chord bears South 45°03'21" West, 611.48 feet) and an arc distance
  of 613.89 feet, to the point of tangency;
         South 36°15'45" West, a distance of 406.05 feet, to an angle
  in the southerly line of the herein described tract;
         THENCE, North 68°09'29" West, a distance of 1,868.05 feet, to
  the POINT OF BEGINNING, and containing 231.1123 acres of land.
         (c)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 7968A, Special
  District Local Laws Code, as added by Section 2(a) of this Act, is
  amended by adding Section 7968A.0306 to read as follows:
         Sec. 7968A.0306.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (d)  Section 2(c) of this Act is not intended to be an
  expression of a legislative interpretation of the requirements of
  Section 17(c), Article I, Texas Constitution.
         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.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.
 
  * * * * *