new MUD: 343 acres in Montgomery County

The text as introduced · 1,500 words

By: Creighton
S.B. No. 2251

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility

District No. 259; granting a limited power of eminent domain;

providing authority to issue bonds; providing authority to impose

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 ______ to read as follows:

CHAPTER . MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.

259

SUBCHAPTER A. GENERAL PROVISIONS

Sec. .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. 259.

Sec. .002. NATURE OF DISTRICT. The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec. .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. .004. CONSENT OF MUNICIPALITY REQUIRED. The

temporary directors may not hold an election under Section .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. .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. .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. .051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors.

(b) Except as provided by Section 7990.052, directors serve

staggered four-year terms.

Sec. .052. TEMPORARY DIRECTORS. (a) On or after

September 1, 2025, 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 003; or

(2) September 1, 2029.

(c) If permanent directors have not been elected under

Section .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 .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. .101. GENERAL POWERS AND DUTIES. The district has

the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. .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. .103. 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. .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 .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. .152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section .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. .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. .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. .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. .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. Montgomery County Municipal Utility District No.

259 initially includes all the territory contained in the following

area:

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____, Special District Local Laws Code, as added by Section

1 of this Act, is amended by adding Section ____.108 to read as

follows:

Sec. .108. 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, 2025.