Bill Text: TX SB1261 | 2017-2018 | 85th Legislature | Enrolled

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Bill Title: Relating to the creation of the Montgomery County Municipal Utility District No. 157; 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: (Enrolled - Dead) 2017-06-09 - Effective on 9/1/17 [SB1261 Detail]

Download: Texas-2017-SB1261-Enrolled.html

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S.B. No. 1261

relating to the creation of the Montgomery County Municipal Utility
District No. 157; 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 7985 to read as follows:
CHAPTER 7985. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT
NO. 157
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7985.001. 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. 157.
Sec. 7985.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7985.003. 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. 7985.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 7985.003
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. 7985.005. 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. 7985.006. 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. 7985.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 7985.052, directors serve
staggered four-year terms.
Sec. 7985.052. TEMPORARY DIRECTORS. (a) On or after
September 1, 2017, 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 7985.003; or
(2) September 1, 2021.
(c) If permanent directors have not been elected under
Section 7985.003 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 7985.003; 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. 7985.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7985.102. 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. 7985.103. 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. 7985.104. 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. 7985.105. 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. 7985.151. 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 7985.153.
(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. 7985.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7985.151, 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. 7985.153. 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. 7985.201. 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. 7985.202. 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. 7985.203. 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. 157 initially includes all the territory contained in the
following area:
Tract One
Being 10.28 acres of land located in the S.S. Prosser, Jr. &
W.T. Williams Survey, Abstract 839, Montgomery County, Texas, more
particularly being a portion of that certain called 92.37 acre
tract (referred to as Tract 4)conveyed to Pilot Land Acquisitions,
LLC by an instrument of record in Document Number 2016040394 of the
Official Public Records of said Montgomery County, (M.C.O.P.R.),
said 10.28 acre tract being more particularly described by metes
and bounds as follows (Bearings based on Texas Coordinate System,
Central Zone, NAD83 (NA2011) Epoch 2010.00);
COMMENCING for reference at a 5/8-inch iron rod with cap
stamped "LJA ENG" found for the northwest corner of said 92.32 acre
tract, on the westerly line of said S.S. Prosser, Jr. & W.T.
Williams Survey, on the easterly line of the John Bricker Survey,
Abstract 98 of said Montgomery County and on the southerly
right-of-way line of SH 242 (width varies), from which a found TxDOT
aluminum disk bears South 87° 16' 44" West, 6.37 feet;
Thence, South 33° 27' 38" East along the common westerly line
of said S.S. Prosser, Jr. & W.T. Williams Survey and the easterly
line of said John Bricker Survey and the westerly line of said 92.32
acre tract, 1,347.33 feet to the POINT OF BEGINNING of the herein
described tract;
Thence, South 50° 25' 47" East, departing said common survey
line and the westerly line of said 92.32 acre tract, 1,769.32 feet
to a point for corner;
Thence, South 39° 19' 53" West, 65.00 feet to a point for
corner;
Thence, South 55° 39' 41" West, 454.35 feet to a point for
corner on said common survey line and the westerly line of said
92.37 acre tract;
Thence, North 33° 27' 38" West, along said common survey line
and the westerly line of said 92.37 acre tract, 1,718.48 feet to the
POINT OF BEGINNING and containing 10.28 acres of land.
Tract Two
Being 8.24 acres of land located in the Benjamin B. Foster
Survey, Abstract 785, Montgomery County, Texas, more particularly
being a portion of that certain called 772.7 acre tract (described
as Tract 3) conveyed to Pilot Land Acquisitions, LLC by an
instrument of record in Document Number 2016040394 of the Official
Public Records of said Montgomery County, (M.C.O.P.R.), said 8.24
acre tract being more particularly described by metes and bounds as
follows (Bearings based on Texas Coordinate System, Central Zone,
NAD83 (NA2011) Epoch 2010.00);
COMMENCING for reference at the northeast corner of said
772.7 acre tract and the northwest corner of that certain called
35.3982 acre tract conveyed to Lizbeth Camarena by an instrument of
record under File Number 2007-096820, M.C.O.P.R.R.P., said point
being on the common survey line of said Benjamin B. Foster Survey
and the T. & N. O. R.R. Co. Survey, Abstract 575 and on the southerly
right-of-way line of SH 242 (width varies) of record in File Number,
9334641, of the Official Public Records of Real Property of
Montgomery County, Texas (M.C.O.P.R.R.P.), from which point a found
5/8-inch iron rod with aluminum cap bears South 06° 07' 13" East,
0.73 feet and a found 5/8-inch iron rod with cap bears South 30° 00'
06" East, 0.92 feet;
Thence, South 02° 52' 43" East, departing the southerly
right-of-way of said SH 242 and with the westerly line of said
35.3982 acre tract, with the east line of said 772.7 acre tract and
the common survey line of said Benjamin B. Foster Survey and the T. &
N. O. R.R. Co. Survey, Abstract 575, 954.95 feet to a point for the
common west corner of the T. & N. O. R.R. Co. Survey, Abstract 575
and the W. C. Clark Survey, Abstract 732, from which a found
3/4-inch iron rod bears North 47° 33' 10" West, 0.51 feet, a found
bent 1-3/4-inch iron pipe bears North 65° 45' 37" East, 0.31 feet,
and a found 2-inch bolt bears South 10° 23' 51" West, 3.08 feet;
Thence, South 02° 56' 30" East, continuing with the east line
of said 772.7 acre tract and the westerly line of said 35.3982 acre
tract, at 1,233.55 feet pass a found 1/2-inch iron rod, continuing
in all a total distance of 1,251.02 feet to the POINT OF BEGINNING
of the herein described tract;
Thence, South 02° 56' 30" East, continuing with the east line
of said 772.7 acre tract and the westerly line of said 35.3982 acre
tract 305.11 feet to a 2-inch bolt found for the common west corner
of said 35.3982 acre tract and that certain called 31.8059 acre
tract conveyed to Kennen Layne Byler by an instrument of record
under File Number 9898892, M.C.O.P.R.R.P;
Thence, South 02° 44' 06" East, continuing with the east line
of said 772.7 acre tract and with the westerly line of said 31.8059
acre tract and the west line of that certain called 4.1 acre tract
(described as Second Tract) conveyed to Craig L. Reddehase,
Jacqueline Baldwin, and Jay Scott Reddehase by an instrument of
record under File Number 2012110356, M.C.O.P.R.R.P., and the west
line of that certain called 4.1 acre tract (described as Second
Tract) conveyed to Jessie Ruth Clark by an instrument of record
under File Number 9815647, M.C.O.P.R.R.P., 721.70 feet to the
southeast corner of the aforementioned 3.034 acre tract;
Thence, North 73° 16' 47" West, departing the east line of
said 772.7 acre tract and the common survey line of said Benjamin B.
Foster Survey and the W. C. Clark Survey and the west line of said
4.1 acre tract (described as Second Tract) conveyed to Jessie Ruth
Clark by an instrument of record under said File Number 9815647,
M.C.O.P.R.R.P., 491.26 feet to the southwest corner of said 3.034
acre tract;
Thence, North 17° 44' 04" East, 501.39 feet to a point for
corner;
Thence, North 25° 07' 06" West, 423.27 feet to a point for
corner;
Thence, North 86° 59' 56" East, 447.96 feet to the POINT OF
BEGINNING and containing 8.24 acres of land.
Said Tract One (10.28) and Tract Two (8.24 acres) being a
total of 18.52 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
7985, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7985.106 to read as follows:
Sec. 7985.106. 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, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1261 passed the Senate on
May 4, 2017, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1261 passed the House on
May 24, 2017, by the following vote: Yeas 137, Nays 9, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor