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  S.B. No. 1118
 
 
 
 
  relating to the creation of the Blaketree Municipal Utility
  District No. 2 of Montgomery County; 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 7972 to read as follows:
  CHAPTER 7972.  BLAKETREE MUNICIPAL UTILITY DISTRICT NO. 2 OF
  MONTGOMERY COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 7972.001.  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 Blaketree Municipal Utility
  District No. 2 of Montgomery County.
         Sec. 7972.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 7972.003.  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. 7972.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 7972.003
  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. 7972.005.  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. 7972.006.  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. 7972.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 7972.052, directors serve
  staggered four-year terms.
         Sec. 7972.052.  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 7972.003; or
               (2)  September 1, 2021.
         (c)  If permanent directors have not been elected under
  Section 7972.003 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 7972.003; 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. 7972.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 7972.102.  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. 7972.103.  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. 7972.104.  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. 7972.105.  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.
         Sec. 7972.106.  DIVISION OF DISTRICT.  (a)  The district may
  be divided into two or more new districts only if the district:
               (1)  has no outstanding bonded debt; and
               (2)  is not imposing ad valorem taxes.
         (b)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  Any new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act enacting this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  7972.003 to confirm the creation of the district.
         (f)  An order dividing the district shall:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint temporary directors for each new district;
  and
               (4)  provide for the division of assets and liabilities
  between or among the new districts.
         (g)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the commission and record the order in the real property
  records of each county in which the district is located.
         (h)  Any new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 7972.003.
         (i)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
         (j)  Municipal consent to the creation of the district and to
  the inclusion of land in the district granted under Section
  7972.004 acts as municipal consent to the creation of any new
  district created by the division of the district and to the
  inclusion of land in the new district.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 7972.151.  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 7972.153.
         (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. 7972.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 7972.151, 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. 7972.153.  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. 7972.201.  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. 7972.202.  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. 7972.203.  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 Blaketree Municipal Utility District No. 2
  of Montgomery County initially includes all the territory contained
  in the following area:
  A METES AND BOUNDS description of a certain 452.0 acre tract out of
  the Noah Griffith Survey, Abstract No. 16, in Montgomery County,
  Texas, being all of the remainder of a called 469.383 acre tract
  (Parcel B) conveyed by Special Warranty Deed to Montgomery Land
  Partners, LP, recorded in Document No. 201302469 of the Official
  Public Records of Montgomery County (OPRMC); Said 452.0 acre tract
  being more particularly described by metes and bounds as follows
  with all bearings being based on the most southerly north line of
  the Final Plat of Bluejack National Phase 1A having a record bearing
  of South 88°24'00" West, recorded in Cabinet Z, Sheets 3074-3088,
  File No. 2014-102281 of the Map Records of Montgomery County;
  BEGINNING at a point-for-corner marking the northeast corner of
  said 469.383 acre remainder tract being in the south right-of-way
  of Moon Camp Road and the west right-of-way of Farm to Market
  Highway 1486;
  THENCE along said west right-of-way, being common with the easterly
  lines of said 469.383 acre remainder tract, the following seven (7)
  courses and distances:
         1.  South 03°45'09" East, 1051.73 feet to a point-for-corner
  and the beginning of a curve to the right;
         2.  Along said curve to the right, having a radius of 1392.48
  feet, an arc length of 886.26 feet, a delta angle of 36°28'00", a
  chord bearing of South 14°28'51" West, and a chord length of 871.38
  feet, to a point-for-corner marking a point of tangency;
         3.  South 32°42'51" West, 1622.60 feet to a point-for-corner;
         4.  North 57°17'09" West, 10.00 feet to a point-for-corner;
         5.  South 32°42'51" West, 539.35 feet to a point-for-corner
  and the beginning of a curve to the left;
         6.  Along said curve to the left, having a radius of 1482.48
  feet, an arc length of 910.29 feet, a delta angle of 35°10'53" a
  chord bearing of South 15°07'24" West, and a chord length of 896.06
  feet, to a point-for-corner marking a point of tangency;
         7.  South 02°28'07" East, 1569.03 feet to a point-for-corner
  marking the southeast corner of said 469.383 acre remainder tract
  being common with the most easterly northeast corner of
  aforementioned Final Plat of Bluejack National Phase 1A and being
  in the west right-of-way of Farm to Market Highway 1486;
  THENCE along the common lines of said 469.383 acre remainder tract
  and said Final Plat of Bluejack National Phase 1A the following
  three (3) courses and distances;
         1.  South 87°09'29" West, 100.00 feet to a point-for-corner;
         2.  North 02°28'41" West, 15.33 feet to a point-for-corner;
         3.  South 88°24'00" West, 3329.69 feet to a point-for-corner
  marking the southwest corner of said 469.383 acre remainder tract;
  THENCE along the common lines of said 469.383 acre remainder tract
  and a called 4.945 acre tract conveyed by Special Warranty Deed to
  The Bluejack Company, LLC recorded in Document No. 2016004704 of
  the OPRMC the following three (3) courses and distances:
         1.  North 04°32'32" West, 4187.74 feet to a point-for-corner;
         2.  North 35°33'45" West, 115.14 feet to a point-for-corner
  marking the beginning of a curve to the left;
         3.  Along said curve to the left, having a radius of 50.00
  feet, an arc length of 45.78 feet, a delta angle of 52°27'52", a
  chord bearing of North 67°22'48" West, and a chord length of 44.20
  feet, to a point-for-corner marking a point of tangency and a
  northwesterly corner of said 469.383 acre remainder tract;
  THENCE North 03°36'45" West, along a northwesterly line of said
  469.383 acre remainder tract, 76.30 feet to a point-for-corner
  marking the most westerly northwest corner of said 469.383 acre
  remainder tract;
  THENCE North 87°16'11" East, along a north line of said 469.383 acre
  remainder tract, 4097.69 feet to a point-for-corner marking an
  interior corner of said 469.383 acre remainder tract;
  THENCE North 02°40'00" West, along the most easterly west line of
  said 469.383 acre remainder tract, 1590.96 feet to a
  point-for-corner marking a north corner of said 469.383 acre tract
  and being in aforementioned south right-of-way of Moon Camp Road;
  THENCE along said south right-of-way of Moon Camp Road the
  following eleven (11) courses and distances:
         1.  South 69°50'32" East, 4.92 feet to a point-for-corner;
         2.  South 84°21'10" East, 56.74 feet to a point-for-corner;
         3.  South 76°21'23" East, 36.53 feet to a point-for-corner;
         4.  South 80°18'36" East, 198.79 feet to a point-for-corner;
         5.  South 89°14'26" East, 215.50 feet to a point-for-corner;
         6.  North 86°14'44" East, 129.06 feet to a point-for-corner;
         7.  North 76°08'26" East, 6.64 feet to a point-for-corner;
         8.  North 80°26'42" East, 8.20 feet to a point-for-corner;
         9.  North 86°14'58" East, 20.60 feet to a point-for-corner;
         10.  North 78°56'24" East, 79.34 feet to a point-for-corner;
         11.  North 80°26'42" East, 604.86 feet to the POINT OF
  BEGINNING, CONTAINING 452.0 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
  7972, Special District Local Laws Code, as added by Section 1 of
  this Act, is amended by adding Section 7972.107 to read as follows:
         Sec. 7972.107.  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. 1118 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. 1118 passed the House on
  May 24, 2017, by the following vote:  Yeas 140, Nays 6, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor