SB 2251

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
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.
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
(3)  "Director" means a board member.
(4)  "District" means the Montgomery County Municipal
Sec.     .002.  NATURE OF DISTRICT.  The district is a
municipal utility district created under Section 59, Article XVI,
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
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
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
(b)  Temporary directors serve until the earlier of:
(1)  the date permanent directors are elected under
(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
(1)  the date permanent directors are elected under
(2)  the fourth anniversary of the date of the
(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
SUBCHAPTER C.  POWERS AND DUTIES
Sec.     .101.  GENERAL POWERS AND DUTIES.  The district has
the powers and duties necessary to accomplish the purposes for
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
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
Sec.   .151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The
district may issue, without an election, bonds and other
(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
(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
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
SECTION 2.  Montgomery County Municipal Utility District No.
259 initially includes all the territory contained in the following
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,
(b)  The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(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
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
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),
SECTION 5.  This Act takes effect September 1, 2025.