Bill Text: TX HB5385 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to the creation of the Harris County Municipal Utility District No. 582; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-11 - Effective immediately [HB5385 Detail]

Download: Texas-2023-HB5385-Enrolled.html

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H.B. No. 5385

AN ACT
relating to the creation of the Harris County Municipal Utility
District No. 582; 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 7959A to read as follows:
CHAPTER 7959A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 582
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7959A.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 Harris County Municipal
Utility District No. 582.
Sec. 7959A.0102. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7959A.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. 7959A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section
7959A.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. 7959A.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. 7959A.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. 7959A.0201. GOVERNING BODY; TERMS. (a) The district
is governed by a board of five elected directors.
(b) Except as provided by Section 7959A.0202, directors
serve staggered four-year terms.
Sec. 7959A.0202. TEMPORARY DIRECTORS. (a) The temporary
board consists of:
(1) Joshua Tarr;
(2) Sarah Hognig;
(3) Kevin Stutts;
(4) Joseph Monk; and
(5) Kenneth Hepburn.
(b) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 7959A.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 7959A.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 7959A.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. 7959A.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7959A.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. 7959A.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. 7959A.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. 7959A.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. 7959A.0306. DIVISION OF DISTRICT. (a) 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.
(b) An order dividing a district may create one or more new
districts and may provide for the continuation of the district.
(c) An order dividing the district shall:
(1) name any new district;
(2) include the metes and bounds description of the
territory of each of the districts;
(3) appoint temporary directors for any new district;
and
(4) provide for the division of assets and liabilities
between the districts.
(d) The board may adopt an order dividing the district
before or after the date the board holds an election to confirm the
district's creation.
(e) The district may be divided only if the district:
(1) has never issued any bonds; and
(2) is not imposing ad valorem taxes.
(f) A 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.
(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) 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.
(i) A new district created by the division of the district
shall hold a confirmation and directors' election.
(j) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(k) A 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.
(l) The district may continue to rely on confirmation,
directors', bond, or tax elections held prior to the division.
(m) Municipal consent to the creation of the district and to
the inclusion of land in the district 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. 7959A.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
7959A.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. 7959A.0402. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7959A.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. 7959A.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. 7959A.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. 7959A.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. 7959A.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 Harris County Municipal Utility District
No. 582 initially includes all the territory contained in the
following area:
A 195.749 acre, (8,526,822 square feet more or less) tract of
land, being all of Tract 1, a called 97.850 acre tract conveyed to
Joe D. Wood and Tract 2, a called 97.850 acre tract of conveyed to
Zola Wood Cater as described in a deed recorded in Clerk's File
No. 20140535364 in the Official Public Records of Harris County,
Texas, situated in the I. & G.N. Railroad Company Survey, Abstract
No. 966, Harris County, Texas. Said 195.749 acre tract being more
fully described as follows, with bearings based on the Texas
Coordinate System established for the South Central Zone from the
North American Datum of 1983 (NA2011) epoch 2010.00:
BEGINNING: At a railroad spike found for the northwest
corner of a said Tract 1, 97.850 acre tract, the northeast corner of
a called 5.0001 acre tract conveyed to Eduardo Loya as described in
a deed recorded in Clerk's File No. T085516 of the Official Public
Records of Real Property of Harris County, Texas, in the Centerline
of Mayer Road ( called 60' wide right-of-way, per WPA Official
Project No. 65-1-66-2749), and in the apparent survey line of I. &
G.M. Railroad Survey Company, Abstract No. 966 and Samuel Kelly
Survey, Abstract No. 501;
THENCE: N 87°29'16" E, along and with the north line of said
Tract 1, 97.850 acre tract, the north line of said Tract 2, 97.850
acre tract, the center line of said Mayer Road, the north line of
Abstract No. 966 and the south line of Abstract No. 501, a distance
of 3,143.68 feet to a mag nail with shiner stamped "Pape-Dawson" set
for the northeast corner of said Tract 2, 97.850 acre tract, the
northeast corner of Abstract No. 966, the southeast corner of
Abstract No. 501, The southwest corner of the B.B.B.&C. Company
Survey, Abstract No. 171, the northwest corner of B.B.B.&C.
Railroad Company Survey, Abstract No. 170, and in the center line
of said Mayer Road, from which a 1 inch iron pipe bears
N 17°34'00" W, a distance of 9.84 feet;
THENCE: S 02°16'53" E, departing the center line of said
Mayer Road, along and with the east line of said Tract 2, 97.850
acre tract, the west line of a called 617.91 acre tract conveyed to
Henry Schmidt, Jr. as described in a deed recorded in Clerk's File
No. G359500 of the Official Public Records of Real Property of
Harris County, Texas, the apparent east line of said Abstract
No. 966 and the west line of said Abstract No. 170, passing at a
distance of 30.00 feet a 5/8 inch iron rod with cap stamped
"Pape-Dawson" set in the south right-of-way line of Mayer road, in
the east line of said Tract 2, and the northwest corner of said
617.91 acre tract, continuing for a total distance of 3,296.84 feet
(called 3296.36 feet) to a 1/2 inch iron rod with cap found for the
southeast corner of said Tract 2, 97.850 acre tract, the northeast
corner of a called 22.029 acre tract conveyed to Lawrence
Frattalone, Jr. as described in a deed recorded in Clerk's File
No. X5447505 of the Official Public Records of Real Property of
Harris County, Texas, in the west line of said 617.91 acre tract,
the apparent east line of said Abstract No. 966 and the apparent
west line of said Abstract No. 170;
THENCE: S 88°14'50" W, along and with the south line of said
Tract 2, 97.850 acre tract and the north line of said 22.029 acre
tract, a distance of 796.15 feet to a 5/8 inch iron rod with cap
stamped "Pape-Dawson" set for a southwest corner of said Tract 2,
97.850 acre tract, the northwest corner of said 22.029 acre tract,
and in the east line of a called 13.265 acre tract conveyed to Larry
Frattalone as described in a deed recorded in Clerk's File
No. Z406306 of the Official Public Records of Real Property of
Harris County, Texas;
THENCE: N 02°32'31" W, along and with a west line of said
Tract 2, 97.850 acre tract, the east line of said 13.265 acre tract
and the east line of a called 11.765 acre tract conveyed to Larry
Frattalone as described in a deed recorded in Clerk's File
No. Z406306 of the Official Public Records of Real Property of
Harris County, Texas, a distance of 770.69 feet (called 770.62
feet) to a 5/8 inch iron rod with cap stamped "Pape-Dawson" set for
an interior corner of said Tract 2, 97.850 acre tract and the
northeast corner of said 11.765 acre tract;
THENCE: S 87°24'01" W, along and with a south line of said
Tract 1 and Tract 2, the north line of said 11.765 acre tract, the
north line of a called 51.125 acre tract conveyed to Edwin Lee
Kohutek, Jr. as described in a deed recorded in Clerk's File
No. U725401 of the Official Public Records of Real Property of
Harris County, Texas, and the north line of a called 159.96 acre
tract conveyed to Texas FLG, LLC as described in a deed recorded in
Clerk's File No. RP-2018-421130 of the Official Public Records of
Real Property of Harris County, Texas, passing a distance of
1,787.90 feet a 1 inch bar found for the northwest corner of said
51.125 acre tract and a northeast corner of said 159.96 acre tract,
a total distance of 2,340.39 feet to a 1/2 inch iron rod found for a
southwest corner of said Tract 1, interior corner of said 159.96
acre tract;
THENCE: N 02°21'55" W, along and with the west line of Tract
1, passing at a distance of 591.43 feet to a 1/2 inch iron rod, 1.82'
left, passing at a distance of 2,489.15 feet a 5/8 inch iron rod
with cap stamped "Pape Dawson" set in the south right-of-way line of
Mayer Road, and continuing for a total distance of 2,519.15 feet
(called 2518.74 feet) to the POINT OF BEGINNING, and containing
195.749 total acres, having 2.165 acres within the right-of-way of
Mayer Road, leaving 193.584 net acres in Harris County, Texas. Said
tract being described in accordance with a survey made on the ground
and a survey map prepared under job number 49181-20 by Pape-Dawson
Engineers, Inc.
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
7959A, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7959A.0307 to read as
follows:
Sec. 7959A.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, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 5385 was passed by the House on May 9,
2023, by the following vote: Yeas 108, Nays 34, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 5385 was passed by the Senate on May
21, 2023, by the following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor