Relating to the creation of the Montgomery County Municipal Utility District No. 263; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

89(R) HB 5654 - Enrolled version - Bill Text

H.B. No. 5654

AN ACT

relating to the creation of the Montgomery County Municipal Utility

District No. 263; 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 8016A to read as follows:

CHAPTER 8016A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT

NO.

263

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8016A.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.

263.

Sec.

8016A.0102.

NATURE OF DISTRICT.

The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec.

8016A.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.

8016A.0104.

CONSENT OF MUNICIPALITY REQUIRED. The

temporary directors may not hold an election under Section

8016A.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.

8016A.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.

8016A.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.

8016A.0201.

GOVERNING BODY; TERMS.

(a)

The district

is governed by a board of five elected directors.

(b)

Except as provided by Section 8016A.0202, directors

serve staggered four-year terms.

Sec.

8016A.0202.

TEMPORARY DIRECTORS.

(a)

On or after

January 1, 2026, 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 8016A.0103; or

(2) January 1, 2030.

(c)

If permanent directors have not been elected under

Section 8016A.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 8016A.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.

8016A.0301.

GENERAL POWERS AND DUTIES.

The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec.

8016A.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.

8016A.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.

8016A.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.

8016A.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.

8016A.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.

8016A.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

8016A.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.

8016A.0402.

OPERATION AND MAINTENANCE TAX.

(a)

If

authorized at an election held under Section 8016A.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.

8016A.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.

8016A.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.

8016A.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.

8016A.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. 263 initially includes all the territory contained in the

following area:

BEING a 87.24 acre tract of land in the John Corner Survey,

Abstract 8, Montgomery County, Texas, and being all of a called

6.795 acre tract of land as recorded in Montgomery County Clerk's

File No. 2016-115162, all of a called 2.538 acre tract as recorded

under Montgomery County Clerk's File No. 2017-004689, all of a

called 3.874 acre tract as recorded in Montgomery County Clerk's

File No. 9810532, all of a called 51.052 acre tract as recorded in

County Clerk's File No. 2016-053457, a portion of a called 7.03

acre tract of land as recorded in County Clerk's File

No. 2021-055312, and a portion of a called 26.11 acre tract of land

as recorded in County Clerk's File No. 2020-099492. Said 87.24 acre

tract being more particularly described as follows, with all

bearings and grid coordinates referenced to NAD '83 Texas Central

Zone

COMMENCING at a 5/8" iron rod found { N: 10134219.32, E:

3770074.82} on the southerly Right of Way of State Highway 105, for

the northwesterly corner of the JW Jolene Subdivision as recorded

in Cabinet Z Sheet 6077 of the County Map Records, also being the

northeasterly corner of the said 26.11 acre tract

THENCE S 09deg 54'13" W a distance of 807.15 feet along the

westerly line of the JW Jolene Subdivision to a 5/8" iron rod found

for the southwesterly corner of JW Jolene Subdivision and the POINT

OF BEGINNING of the herein described tract;

THENCE S 79deg 28'19" E a distance of 321.02 feet along the

southerly line of the JW Jolene Subdivision, to a 5/8" iron rod

found for the southeasterly corner of the said JW Jolene

Subdivision, also being the southwesterly corner of a called 3.50

acre tract of land as recorded in County Clerk's File No. 9356111;

THENCE S 79deg 46'38" E a distance of 189.11 feet along the

southerly line of the said 3.50 acre tract, to a 5/8" iron rod found

on the westerly line of Roman Hills Subdivision, Section 1 as

recorded in Cabinet A, Sheet 81 of the County Map Records;

THENCE along the westerly line of Roman Hills Subdivision

Section 1 the following:

THENCE S 52deg 21'56" W a distance of 32.70 feet;

THENCE S 21deg 37'14" W a distance of 369.55 feet;

THENCE S 56deg 37'54" W a distance of 1220.44 feet;

THENCE N 80deg 51'39" W a distance of 9.37 feet to the

southeasterly corner of a called 11.06 acre tract of land as

recorded in County Clerk's File No. 2020-142820

THENCE N 09deg 54'13" E a distance of 794.76 feet along the

easterly line of the said 11.06 acre tract to a 5/8" iron rod found

for the northeasterly corner of the said 11.06 acre tract;

THENCE N 80deg 05'47" W a distance of 600.00 feet to a 5/8"

iron rod found for the northwesterly corner of the said 11.06 acre

tract;

THENCE S 09deg 54'12" W a distance of 812.79 feet along the

westerly line of the said 11.06 to a 1/2" iron rod for the

southwesterly corner of the said 11.06 acre tract, on the northerly

line of a called 104.5 acre tract of land as recorded in County

Clerk's File No. 2022-122722;

THENCE N 80deg 07'54" W a distance of 1075.26 feet along the

northerly line of the said 104.5 acre tract to a 5/8" iron rod found

for the southwesterly corner of the said 51.052 acre tract;

THENCE N 09deg 54'32" E a distance of 416.02 feet along the

westerly line of the said 51.052 acre tract to the southeasterly

corner of the said 3.874 acre tract;

THENCE N 80deg 07'20" W a distance of 10.57 feet to a 60' Right

of Way known as Club Drive and recorded in County Clerk's File

No. 9219822;

THENCE along the northeasterly line of Club Drive the

following:

THENCE N 09deg 52'40" E a distance of 204.93 feet;

THENCE with a curve turning to the left with an arc length of

1042.73', with a radius of 1082.90', with a chord bearing of N 17deg

42'39" W, with a chord length of 1002.91';

THENCE N 45deg 10'35" W a distance of 458.77 feet;

THENCE with a curve turning to the right with an arc length of

322.04', with a radius of 337.41', with a chord bearing of N 17deg

51'07" W, with a chord length of 309.95' to the southerly Right of

Way of State Highway No. 105 and being the northwesterly corner of

the herein described tract;

THENCE along the southerly line of State Highway No 105 the

following:

THENCE S 80deg 28'30" E a distance of 43.41 feet;

THENCE S 80deg 27'13" E a distance of 649.95 feet;

THENCE S 83deg 59'40" E a distance of 151.78 feet;

THENCE S 83deg 46'05" E a distance of 150.43 feet;

THENCE S 80deg 12'35" E a distance of 306.70 feet;

THENCE S 69deg 41'13" E a distance of 216.36 feet;

THENCE N 19deg 48'21" E a distance of 40.00 feet;

THENCE S 80deg 07'48" E a distance of 550.86 feet to the

northwesterly corner of a called 3.948 acre tract of land as

recorded in County Clerk's File No. 2016-102606;

THENCE S 09 deg 57'38" W a distance of 867.19 feet to the

southwesterly corner of the said 3.948 acre tract;

THENCE S 80deg 05'47" E a distance of 200.00 feet to the

southeasterly corner of the said 3.948 acre tract;

THENCE N 09deg 54'13" E a distance of 50.68 feet to a point

along the easterly line of the said 3.948 acre tract;

THENCE S 79deg 28'19" E a distance of 885.05 across the said

7.03 acre tract and the said 26.11 acre tract, to the POINT OF

BEGINNING, and containing 87.24 acres of land, more or less.

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

8016A, Special District Local Laws Code, as added by Section 1 of

this Act, is amended by adding Section 8016A.0307 to read as

follows:

Sec.

8016A.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 January 1, 2026.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 5654 was passed by the House on May 7,

2025, by the following vote: Yeas 101, Nays 47, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 5654 was passed by the Senate on May

28, 2025, by the following vote: Yeas 27, Nays 4.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor