Monitoring the Session

SB 3036

new MUD: 416 acres in Montgomery County

Did not pass

Verdict: No flags

No flagsInitial review
Sen. Brandon CreightonRSenate 4

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the creation of the Montgomery County Municipal Utility District No. 258; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Caption from analyzed text · version I.

Summary

Bonds, taxes, fees and assessments.

This bill creates Montgomery County Municipal Utility District No. 258 on about 416 acres of land described in the bill, and lets it issue bonds and impose taxes, fees and assessments. The owners of a majority of the land's assessed value pick the five temporary directors by petition, and the state environmental commission must appoint them, until residents elect a permanent board. Once local voters approve, the district can build water, drainage and road projects and repay bonds with property taxes that have no rate limit, though it loses eminent domain power if the bill does not pass by a two-thirds vote.

Receipt

The receipt

89R-SB3036 · 2025-03-28

SOLD BY

ITEM

relating to the creation of the Montgomery County Municipal Utility District No. 258; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

WHAT IT DOES

Bonds, taxes, fees and assessments.

This bill creates Montgomery County Municipal Utility District No. 258 on about 416 acres of land described in the bill, and lets it issue bonds and impose taxes, fees and assessments. The owners of a majority of the land's assessed value pick the five temporary directors by petition, and the state environmental commission must appoint them, until residents elect a permanent board. Once local voters approve, the district can build water, drainage and road projects and repay bonds with property taxes that have no rate limit, though it loses eminent domain power if the bill does not pass by a two-thirds vote.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · May 2, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Transmitted to the Governor
  3. Read first time
  4. Referred to Local Government
  5. Recommendations filed with the Senate
  6. Scheduled for public hearing on . . .
  7. Considered in public hearing
  8. Vote taken in committee
  9. Reported favorably w/o amendments
  10. Recommended for local & uncontested calendar
  11. Committee report printed and distributed
FILED UNDER

DEBT AND SPECIAL DISTRICTS

THE TEXT

…“direct ad valorem tax, without limit as to rate or amount, while all”…

Bill text, introduced version (I)

The bill creates a new municipal utility district by local bill, with bond authority backed by property taxes that have no rate cap, and a temporary board chosen by the majority landowners.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Donors report through Friends of Brandon Creighton.

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

$0 raised since Jul 1, 2024. Derived sum of published report totals. blank in the state's data, consistent with zero. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026. 4 of 4 filed reports carry a published figure.

Report 101060909: Published total from the filed report. Retrieved Oct 29, 2026. Filed report 101060909

$0 spent Jan 1, 2026 to Jun 30, 2026. Published total from the filed report. Flow, Jan 1, 2026 through Jun 30, 2026. State filing data as of Nov 4, 2026. 1 of 1 filed reports carry a published figure.

Report 101060909: Published total from the filed report. Retrieved Oct 29, 2026. Filed report 101060909

$0 cash on hand. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.

$0 loans outstanding. Published report total. Stock, as of Jun 30, 2026. State filing data as of Nov 4, 2026.

Derived sum of itemized contributions in regular reports and uncovered special-session dates. Unitemized contributions are not included. Flow, Jul 1, 2024 through Jun 30, 2026. State filing data as of Nov 4, 2026.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Votes

No floor vote loaded for this bill.

Witnesses3
For
1
Against
1
On
1
Names

For

  • William Dunwoody, Jr.1 registration

Against

  • Self1 registration

On

  • Self1 registration
Sources

3 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · May 2, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 28, 2025

05/06/2025 S Committee report printed and distributed: May 6 2025 7:04PM

Texas Legislature Online · Introduced · Senate Committee Report

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · Local Government · Committee vote 5 aye, 0 nay, 1 absent · Out of committee

Companion

HB 5652 by Metcalf (identical)

Subjects

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 258 (DX6QH)

Special Districts & Authorities--Municipal Utility Districts

Special Districts & Authorities--Water & Utility

Taxation--General

ENVIRONMENTAL QUALITY, TEXAS COMMISSION ON

Text

The text as introduced · 3,169 words

89R13120 SCR-F

By: Creighton
S.B. No. 3036

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Montgomery County Municipal Utility

District No. 258; 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 8003A to read as follows:

CHAPTER 8003A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT

NO. 258

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8003A.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. 258.

Sec. 8003A.0102. NATURE OF DISTRICT. The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec. 8003A.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. 8003A.0104. CONSENT OF MUNICIPALITY REQUIRED. The

temporary directors may not hold an election under Section

8003A.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. 8003A.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. 8003A.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. 8003A.0201. GOVERNING BODY; TERMS. (a) The district

is governed by a board of five elected directors.

(b) Except as provided by Section 8003A.0202, directors

serve staggered four-year terms.

Sec. 8003A.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 8003A.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 8003A.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 8003A.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. 8003A.0301. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 8003A.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. 8003A.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. 8003A.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. 8003A.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. 8003A.0306. DIVISION OF DISTRICT. This chapter

applies to any new district created by the division of the district

under Section 49.316, Water Code, and a new district has all the

powers and duties of the district.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8003A.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

8003A.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. 8003A.0402. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8003A.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. 8003A.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. 8003A.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. 8003A.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. 8003A.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. 258 initially includes all the territory contained in the

following area:

PART 1:

BEING 415.36 acres of land in the Samuel Lindley Survey,

Abstract Number 23, and the William Hulon Survey, Abstract Number

262 in Montgomery County, Texas, being a portion of the called

811.345 acre tract described under "Schedule 1", a portion of the

called 71.884 acre tract described under "Schedule 2", and all of

the called 11.071 acre tract described under "Schedule 3" in the

deed from William McComb Dunwoody to Esperanza Ranch LLC, recorded

under Document Number 2024075466 of the Official Public Records of

Montgomery County, Texas, said 415.36-acre tract being more

particularly described by metes and bounds as follows with bearings

based on the Texas Coordinate System of 1983, Central Zone:

BEGINNING at an axle found for the north corner of a called

2.872-acre tract described in the deed from Cynthia Ann Uhlenhop,

et al. to Willis Conservation Partners LLC recorded under Document

No. 2021144058 of the Official Public Records of Montgomery County,

Texas, in the southerly line of said called 71.884-acre tract;

THENCE North 77° 55' 08" West - 216.88 feet to a 5/8-inch iron

rod with cap stamped "IDS" set for the southwest corner of the said

called 71.884-acre tract, and an angle corner of the herein

described tract;

THENCE North 77° 36' 25" West - 516.26 feet to an axle found

for the northwest corner of said called 2.872-acre tract and an

angle corner of the herein described tract, in the easterly line of

said called 11.071-acre tract;

THENCE South 12° 54' 25" West - 50.78 feet to an iron bar found

for the southeast corner of said called 11.071-acre tract, the

northeast corner of a called 0.866-acre tract described in the deed

from Justin Hasara to Chinook LP recorded under Document Number

2016116601 of the Official Public Records of Montgomery County,

Texas and an angle corner of the herein described tract;

THENCE North 77° 10' 00" West - 208.84 feet to a 1/2-inch iron

rod with an unreadable cap found for the northwest corner of the

said called 0.866-acre tract, the southeast corner of the

11.071-acre tract and an angle corner of the herein described

tract, in the easterly right of way line of State Highway 75 (120'

R.O.W.);

THENCE, with the easterly right-of-way line of said State

Highway 75, the following courses, and distances:

North 05° 08' 47" East - 347.38 feet to a concrete monument

found for an angle corner of the herein described tract;

North 15° 56' 47" East - 2,910.67 feet to a 5/8-inch iron rod

with cap stamped "IDS" set for the beginning of a curve to the left;

in a northerly direction, with said curve to the left, having

a radius of 1616.70 feet, a central angle of 04° 20' 56", a chord

bearing and distance of North 13° 39' 18" East - 122.68 feet, and an

arc distance of 122.71 feet, to a 5/8-inch iron rod with cap stamped

"IDS" set for angle corner of a called 34.290 acre tract described

in the deed from Charles R. Dooley, et ux. to Tom Cutis Ansley, et

ux. recorded under Document No. 2010077331 of the Official Public

Records of Montgomery County, Texas, and being the most westerly

northwest corner of the herein described tract and end of said

curve;

THENCE, with the lines of said 34.290-acre tract, the

following courses, and distances:

North 56° 22' 40" East - 143.00 feet to a 5/8-inch iron rod

with cap stamped "IDS" set for an angle corner of the herein

described tract;

South 28° 46' 41" East - 1041.10 feet to an axle found laid

over at the southeast corner of the said 34.290-acre tract and an

angle corner of the herein described tract;

North 62° 10' 15" East - 757.18 feet to a 5/8-inch iron rod

with cap stamped "IDS" set for an angle corner of the herein

described tract;

North 60° 36' 45" East - 435.97 feet to a bent axle found for

the southeast corner of the called 34.290-acre tract and an angle

corner of the herein described tract;

North 17° 55' 46" West - 641.75 feet to an axle found for an

angle corner of the herein described tract;

THENCE North 17° 10' 32" West, at 370.87 feet pass a 1/2-inch

iron rod found for the most easterly northeast corner of said called

34.290-acre tract and the southeast corner of a called 2.913 acre

tract described in the deed from Jane Zimmer to Amber Renee Fischer,

Et al. recorded under Document Number 2017027478 of the official

Public Records of Montgomery County, Texas, a total distance of

715.73 feet to bent axle found for the northeast corner of said

called 2.913 acre tract and the most northerly northwest corner of

the herein described tract, in the southerly line of a called

162.577-acre tract described in the deed from Hanson Aggregates LLC

to Lehigh Hanson Materials South LLC recorded under Document Number

2021173941 of the Official Public Records of Montgomery County,

Texas;

THENCE, with the southern lines of said called 162.577-acre

tract, the following courses, and distances;

North 78° 00' 07" East - 834.82 feet to a crosstie fence post

found for an angle corner of the herein described tract;

North 66° 20' 31" East - 527.05 feet to a crosstie fence post

found for an angle corner of the herein described tract;

North 57° 56' 19" East - 452.74 feet to a crosstie fence post

found for an angle corner of the herein described tract;

North 40° 00' 02" East - 494.87 feet to a crosstie fence post

found for an angle corner of the herein described tract;

North 45° 26' 06" East - 388.64 feet to a crosstie fence post

found for an angle corner of the herein described tract;

THENCE North 54° 51' 45" East - 363.15 feet to a 5/8-inch iron

rod with cap stamped "IDS" set for the northeast corner of the

herein described tract, in the westerly right-of-way line of the

International & Great Northern Railroad right-of-way (150'-wide at

this section) as recorded under Volume 5, Page 108 of the Deed

Records of Montgomery County, Texas, from which an axle bears North

54° 51' 45" East - 25.17 feet ;

THENCE South 32° 15' 17" East - 3,620.70 feet, with the

westerly right-of-way line of said railroad, to a 5/8-inch iron rod

with cap stamped "IDS";

THENCE South 63° 15' 50" West - 6,378.60 feet to the POINT OF

BEGINNING of the herein described tract and containing 415.36 acres

of land.

PART 2:

BEING 1.270 acres of land in the William Hulon Survey,

Abstract Number 262, in Montgomery County, Texas, being all of the

called 1.2764-acre tract described under "Schedule 3", in the deed

from William McComb Dunwoody to Esperanza Ranch LLC, recorded under

Document Number 2024075466 of the Official Public Records of

Montgomery County, Texas, said 1.270-acre tract being more

particularly described by metes and bounds as follows with bearings

based on the Texas Coordinate System of 1983, Central Zone:

BEGINNING at a square bolt found for the southwest corner of a

called 2.213-acre tract described in the deed to 5921 Columbus Club

recorded under Volume 1154, Page 464 of the Deed Recorded of

Montgomery County, Texas, and being the northwest corner of the

herein described tract, in the easterly right-of-way line of

Interstate Highway 45 (R.O.W. Varies);

THENCE South 74° 30' 45" East - 177.32 feet, with the

southerly line of said 2.213-acre tract, to a 5/8-inch iron rod with

cap stamped "IDS" set for the northeast corner of the herein

described tract, in the westerly right-of-way line of State Highway

75 (120' R.O.W.);

THENCE South 15° 56' 47" West - 465.11 feet, with the westerly

right-of-way line of said State Highway 75, to a 5/8-inch iron rod

with cap stamped "IDS" set for the southeast corner of the herein

described tract;

THENCE North 74° 17' 44" West - 45.49 feet to a 5/8-inch iron

rod with cap stamped "IDS" set for the southwest corner of the

herein described tract, in the easterly right-of-way line of said

Interstate Highway 45;

THENCE North 06° 57' 44" West - 119.24 feet, with the easterly

right-of-way line of said Interstate Highway 45, to a concrete

monument found for an angle corner of the herein described tract;

THENCE North 02° 22' 59" East - 364.20 feet, continuing with

the easterly right-of-way line of said Interstate Highway 45, to

the POINT OF BEGINNING of the herein described tract and containing

1.270 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

8003A, Special District Local Laws Code, as added by Section 1 of

this Act, is amended by adding Section 8003A.0307 to read as

follows:

Sec. 8003A.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 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, 2025.