Bill Text: TX HB5318 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the creation of the Montgomery County Water Control and Improvement District No. 6; 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) 2023-06-11 - Effective immediately [HB5318 Detail]

Download: Texas-2023-HB5318-Comm_Sub.html

---

By: Metcalf (Senate Sponsor - Kolkhorst) H.B. No. 5318
(In the Senate - Received from the House May 3, 2023;
May 4, 2023, read first time and referred to Committee on Local
Government; May 15, 2023, reported favorably by the following
vote: Yeas 7, Nays 0; May 15, 2023, 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 Water Control and
Improvement District No. 6; 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 I, Title 6, Special District Local Laws
Code, is amended by adding Chapter 9058 to read as follows:
CHAPTER 9058. MONTGOMERY COUNTY WATER CONTROL AND IMPROVEMENT
DISTRICT NO. 6
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 9058.0101. 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 Water
Control and Improvement District No. 6.
Sec. 9058.0102. NATURE OF DISTRICT. The district is a water
control and improvement district created under Section 59, Article
XVI, Texas Constitution.
Sec. 9058.0103. 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. 9058.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
9058.0103 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. 9058.0105. 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 water control and improvement district as
provided by general law and Section 59, Article XVI, Texas
Constitution, including the collection, transportation,
processing, disposal, and control of domestic, industrial, or
communal waste and the gathering, conducting, diverting, and
control of local stormwater or other harmful excesses of water; 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. 9058.0106. 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. 9058.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 9058.0202, directors
serve staggered four-year terms.
Sec. 9058.0202. 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 9058.0103; 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 9058.0103 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 9058.0103; 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. 9058.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 9058.0302. WATER CONTROL AND IMPROVEMENT DISTRICT
POWERS AND DUTIES. The district has the powers and duties provided
by the general law of this state, including Chapters 49 and 51,
Water Code, applicable to water control and improvement districts
created under Section 59, Article XVI, Texas Constitution, and
specifically including the powers and duties authorized under
Subchapter H, Chapter 51, Water Code.
Sec. 9058.0303. 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. 9058.0304. 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. 9058.0305. 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 42.042 or 42.0425, Local Government Code, and
consents to the creation of the district or to the inclusion of land
in the district.
Sec. 9058.0306. LIMITATION ON USE OF EMINENT DOMAIN. The
district may not exercise the power of eminent domain outside the
district boundaries to acquire a site or easement for:
(1) a recreational facility, as defined by Section
49.462, Water Code; or
(2) a road project authorized by Section 9058.0303.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 9058.0401. 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 9058.0403.
(b) The district must hold an election in the manner
provided by Chapters 49 and 51, 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. 9058.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 9058.0401, 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. 9058.0403. 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. 9058.0501. 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. 9058.0502. 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 Chapter 51, Water Code.
Sec. 9058.0503. 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.
Sec. 9058.0504. BONDS FOR RECREATIONAL FACILITIES. (a)
The district may develop recreational facilities and issue bonds
for recreational facilities as provided by Chapter 49, Water Code,
regardless of whether the district's territory overlaps with the
territory of a political subdivision that is authorized to develop
recreational facilities and issue bonds for recreational
facilities under Chapter 49, Water Code.
(b) The authority of the district to develop recreational
facilities and issue bonds for recreational facilities under this
section does not limit the authority of another political
subdivision whose territory the territory of the district may
overlap, wholly or partly, to develop recreational facilities and
issue bonds for recreational facilities under Chapter 49, Water
Code.
SECTION 2. The Montgomery County Water Control and
Improvement District No. 6 initially includes all the territory
contained in the following area:
Being 299 acres of land, more or less, located in the Raleigh
Rogers Survey, Abstract 33, Montgomery County, Texas, out of land
conveyed to Homeplace Lands, LLC, as recorded under Clerk's File
No. 2012125424 of the Official Public Records of Real Property,
Montgomery County, Texas, (O.P.R.M.C.), being comprised of two (2)
tracts as described below; said 299 acres, more or less, being more
particularly described as follows, with all bearings referenced to
the Texas Coordinate System, Central Zone, NAD83 (NA2011) Epoch
2010.00:
TRACT 1: 105 Acres
BEGINNING at the northeast corner of the herein described
tract, lying in a southwesterly line of the BN & SF Railroad
right-of-way, from which the northwest corner of a 216.521 acre
tract, as defined under Clerk's File No. 2012125424 of the
O.P.R.M.C., also being the southwest corner of land conveyed to
Douglas B. & Carolyn Lee as recorded under Clerk's File
No. 2014125321 of the O.P.R.M.C., bears NORTH 86 degrees 42 minutes
33 seconds EAST, 2,038.61 feet;
THENCE SOUTHEASTERLY with and adjoining said southwesterly
line of said BN & SF Railroad right-of-way line approximately 2,789
feet, more or less, to the southeast corner of the hereon described
tract, lying in a northerly line of land as described in a warranty
deed to Earle T. McCants and Edward W. McCants as recorded under
Clerk's File No. 99002183 of the Official Public Records of Real
Property Montgomery County, Texas (O.P.R.R.P.M.C.);
THENCE WESTERLY approximately 3,351 feet, more or less, with
and adjoining a northerly line of said Earle T. McCants and Edward
W. McCants tract to the southwest corner of the herein described
tract, also being a northerly interior corner of said McCants
tract;
THENCE NORTHERLY at approximately 918.7 feet, passing a
northerly corner of said Earle T. McCants and Edward W. McCants
tract, and continuing a total distance of 1,989 feet, more or less,
to the northwest corner of the herein described tract;
THENCE EASTERLY approximately 1,425 feet, more or less, to
the POINT OF BEGINNING, and containing approximately 105 acres of
land. This document was prepared under 22 Texas Administrative Code §
138.95, does not reflect the results of an on the ground survey,
and is not to be used to convey or establish interests in real
property except those rights and interests implied or established
by the creation or reconfiguration of the boundary of the political
subdivision for which it was prepared.
TRACT 2:194 Acres
BEGINNING at a southeast corner of a tract, conveyed to David
L. and Cathy L. Messecar, as recorded under Clerk's File
No. 9626214 of the Official Public Records of Real Property
Montgomery County, Texas (O.P.R.R.P.M.C.), also being the
southwest corner of an 18.984 acre tract as described under Clerk's
File No. 2012125424 of the Official Public Records Montgomery
County, Texas (O.P.R.M.C.), lying in the westerly right-of-way line
of F.M. 2854;
THENCE SOUTH 52 degrees 53 minutes 12 seconds EAST,
approximately 353 feet, more or less, to an easterly corner of the
herein described tract, lying in a northwesterly line of a 2.9785
acre tract as defined under Clerk's File No. 2018005218 of the
O.P.R.M.C.;
THENCE SOUTHWESTERLY approximately 699 feet, more or less,
with and adjoining said northwesterly line of the 2.9785 acre
tract, to a point of curvature and easterly corner of the herein
described tract;
THENCE SOUTHERLY approximately 448 feet, more or less, along
a curve to the left, with and adjoining said northwesterly line of
the 2.9785 acre tract;
THENCE SOUTHEASTERLY approximately 154 feet, more or less,
with and adjoining said northwesterly line of the 2.9785 acre
tract, and a northerly line of a 123.962 acre tract as recorded
under Clerk's File No. 2009-017518 of the O.P.R.M.C., to the
centerline meanders of a tributary ditch of MOUND CREEK, also being
a northerly corner of said 123.962 acre tract and an easterly corner
of the herein described tract;
THENCE SOUTHWESTERLY approximately 2,392 feet, more or less,
with and adjoining the northerly line of said 123.962 acre tract and
the centerline meanders of a tributary ditch of MOUND CREEK, to a
southerly corner of the herein described tract;
THENCE SOUTHERLY approximately 571 feet, more or less, with
and adjoining a westerly line of said 123.962 acre tract, to a
southerly corner of the herein described tract, also being the
northeast corner of a 3.50 acre tract as defined under Clerk's File
No. 214046987 of the O.P.R.M.C.;
THENCE WESTERLY approximately 342 feet, more or less, with
and adjoining the north line of said 3.50 acre tract, to a southerly
corner of the herein defined tract;
THENCE SOUTHWESTERLY approximately 247 feet, more or less,
with and adjoining a westerly line of said 3.50 acre tract, to a
southerly of the herein defined tract, lying in a northeasterly
line of the BN & SF Railroad right-of-way;
THENCE NORTHWESTERLY approximately 4,144 feet, more or less,
with and adjoining said northeasterly line of the BN & SF Railroad
right-of-way, to the northwest corner of the herein described
tract;
THENCE NORTH 86 degrees 42 minutes 33 seconds EAST,
approximately 1,908 feet, more or less, to the northwest corner of a
216.521 acre tract, as defined under Clerk's File No. 2012125424 of
the O.P.R.M.C., also being the southwest corner of land conveyed to
Douglas B. & Carolyn Lee as recorded under Clerk's File
No. 2014125321 of the O.P.R.M.C., and being a northerly corner of
the herein described tract;
THENCE EASTERLY approximately 3,227 feet, more or less, with
and adjoining the southerly line of said Douglas B. & Carolyn Lee
tact and a southerly line of said David L. and Cathy L. Messecar
tract, to the POINT OF BEGINNING, and containing approximately 194
acres. This document was prepared under 22 Texas Administrative
Code §138.95, does not reflect the results of an on the ground
survey, and is not to be used to convey or establish interests in
real property except those rights and interests implied or
established by the creation or reconfiguration of the boundary of
the political subdivision for which it was prepared.
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) Section 9058.0306, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 9058, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 9058.0306 to read as follows:
Sec. 9058.0306. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(c) 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 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.
* * * * *