Bill Text: TX HB4651 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-06-15 - Effective on 9/1/21 [HB4651 Detail]

Download: Texas-2021-HB4651-Enrolled.html

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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