By: Kolkhorst S.B. No. 1002

(In the Senate - Filed March 5, 2015; March 10, 2015, read first time and referred to Committee on Intergovernmental Relations; April 30, 2015, reported favorably by the following vote: Yeas 6, Nays 0; April 30, 2015, sent to printer.) Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Harris County Municipal Utility District No. 540; 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 7910 to read as follows:

CHAPTER 7910. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 540

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7910.001. 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 Harris County Municipal Utility District No. 540.

Sec. 7910.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution.

Sec. 7910.003. 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. 7910.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7910.003 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. 7910.005. 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. 7910.006. 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. 7910.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors.

(b) Except as provided by Section 7910.052, directors serve staggered four-year terms.

Sec. 7910.052. 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 7910.003; 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 7910.003 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 7910.003; 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. 7910.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 7910.102. 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. 7910.103. 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. 7910.104. 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. 7910.105. 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.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 7910.151. 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 7910.153.

(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. 7910.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7910.151, 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. 7910.153. 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. 7910.201. 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. 7910.202. 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. 7910.203. 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 Harris County Municipal Utility District No. 540 initially includes all the territory contained in the following area:

TRACT 1

BEING 159.65 acres of land situated in the H. & T. C. R. R. Co. Survey, Section 47, Block 2, Abstract Number 440, Harris County, Texas, being all of that certain called 159.6531 acres conveyed to Cunningham Interests, II, Ltd by deed recorded under Harris County Clerk's File Number (H.C.C.F. No.) 20110175218, said 159.65 acre tract being more particularly described by metes and bounds as follows:

BEGINNING at a MAG Nail with shiner stamped "COSTELLO" found for the Southeast corner of said 159.6531 acre tract and being in the pavement of Stockdick School Road (width unknown) also being in the centerline of Peek road (60-foot wide) as referenced in Volume 996, Page 491 of the Harris County Deed Records;

THENCE, S 87° 58' 23" W, a distance of 2,582.65 feet along said Stockdick Road to the Southwest corner of said 159.6531 acre tract;

THENCE, along the lines common to said 159.6531 acre tract and the remainder of a called 160 acre tract described in Volume 1494, Page 230 of the Harris County Deed Records the following two (2) courses and distances:

N 04° 45' 03" W, a distance of 309.54 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC. RPLS 4416" found for an interior ell corner of said 159.6531 acre tract;

S 88° 22' 39" W, a distance of 42.85 feet to the Northeast corner of a called 3.00 acre tract described and recorded under H.C.C.F. No. D978707 from which a found 5/8-inch iron rod with cap stamped "COSTELLO INC. RPLS 4416" bears N 84° 28' W, 0.37 feet, also being the Southeast corner of a called 158.33 acre tract described and recorded under H.C.C.F. No. 20130266472;

THENCE, N 02° 04' 00" W, a distance of 2,330.87 feet along the line common to said 158.33 acre tract and said 159.6531 acre tract to the northern corner common to said 159.6531 acre tract and said 158.33 acre tract from which a found 5/8-inch iron rod with cap stamped "COSTELLO INC. RPLS 4416" bears S 89° 21' W, 3.45 feet also being the Southwest corner of a called 156.432 acre tract described and recorded under H.C.C.F. No. V829107;

THENCE, N 87° 59' 16" E, a distance of 2,640.00 feet along the North line of said 159.6531 acre tract and the South lines of said 156.432 acre tract and a called 9.7770 acre tract described and recorded under H.C.C.F. No. G578991to the Northeast corner of said 159.6531 acre tract and the herein described tract from which a found Nail with shiner stamped "COSTELLO" bears N 82° 39' W, 3.01 feet;

THENCE, S 02° 04' 00" E, a distance of 2,639.69 feet along and with the centerline of said Peek Road to the POINT OF BEGINNING and containing 159.65 acres of land. Bearing orientation is based on the Texas Coordinate System South Central Zone 4204, NAD83.

TRACT 2

BEING 247.03 acres of land situated in the George Spencer Survey, Abstract Number 1369 and the M. M. Willsey Survey, Abstract Number 1459 of the H. & T. C. R. R. Co. Survey, Block 2, Harris County, Texas, being all of that certain called 235.55 acres conveyed to Cunningham Interests, II, Ltd by deed recorded under Harris County Clerk's File Number (H.C.C.F. No.) 20120237422 and all of that certain called 11.526 acres conveyed to Cunningham Interests, II, Ltd by deed recorded under H.C.C.F. No. 20140170048, said 247.03 acre tract being more particularly described by metes and bounds as follows:

BEGINNING at a 5/8-inch iron rod with aluminum Texas Department of Transportation (TxDot) cap found for the Southeast corner of said 235.55 acre tract and being in the North right-of-way line of Stockdick School Road (60-foot with, no deed found) also being the West right-of-way line of said Stockdick Road (width varies, no deed found);

THENCE, S 87° 56' 23" W, a distance of 3,929.03 feet along the North right-of-way line of said Stockdick School Road to a 5/8-inch iron rod found for the Southeast corner of a called 17.00 acre tract described and recorded under H.C.C.F. No. V330498 and the Southwest corner of said 235.55 acre tract and the herein described tract;

THENCE, N 01° 59' 51" W, a distance of 851.43 feet along the line common to said 17.00 acre tract and said 235.55 acre tract to the Northeast corner of said 17.00 acre tract and being the Southeast corner of said 11.526 acre tract and from which a 1/2-inch iron rod found bears S 87° 57' W, 4.59 feet;

THENCE, S 87° 57' 20" W, a distance of 378.38 feet along the line common to said 17.00 acre tract and said 11.526 acre tract to the Southwest corner of said 11.526 acre tract and the southeast corner of a called 11.653 acre tract described and recorded under H.C.C.F. No. Y103912, said point being in the centerline of South Mayde Creek;

THENCE, along and with the centerline of South Mayde Creek, same being the line common to said 11.526 acre tract and said 11.653 acre tract the following sixteen (16) courses and distances:

N 57° 32' 53" W, 185.76 feet to an angle point;

N 76° 58' 36" W, 5.99 feet to an angle point;

N 73° 39' 37" W, 44.16 feet to an angle point;

N 27° 46' 16" W, 24.43 feet to an angle point;

N 18° 48' 22" E, 80.98 feet to an angle point;

N 21° 42' 27" E, 261.01 feet to an angle point;

N 15° 34' 29" E, 88.96 feet to an angle point;

N 22° 02' 24" W, 81.87 feet to an angle point;

N 32° 50' 40" E, 34.54 feet to an angle point;

N 21° 18' 18" W, 20.21 feet to an angle point;

N 53° 13' 23" W, 47.36 feet to an angle point;

N 85° 03' 23" W, 176.78 feet to an angle point;

S 70° 36' 55" W, 107.89 feet to an angle point;

N 73° 03' 25" W, 44.61 feet to an angle point;

N 40° 29' 03" W, 186.40 feet to an angle point;

N 55° 40' 31" W, 60.60 feet to the most westerly Northwest corner of the herein described tract and being in the South line of a called 25.8950 acre tract described and recorded under H.C.C.F. No. 20100452700;

THENCE, N 88° 03' 56" E, a distance of 966.73 feet along the line common to said 25.8950 acre tract and said 11.256 acre tract to the Northeast corner of said 11.256 acre tract and the Southeast corner of said 25.8950 acre tract, being in the West line of said 235.55 acre tract and from which a found 3/8-inch iron rod bears S 87° 47' W, 6.77 feet;

THENCE, N 01° 59' 51" W, a distance of 882.01 feet along the line common to said 235.55 acre tract and said 25.8950 acre tract to the Northeast corner of said 25.8950 acre tract and the Northwest corner of said 235.55 acre tract, being in the South line of a called 7.016 acre tract described and recorded under H.C.C.F. No. Y680341 and from which a found 3/8-inch iron rod bears S 83° 44' W, 9.92 feet;

THENCE, N 87° 58' 30" E, a distance of 3,073.16 feet along the North line of said 235.55 acre tract and South lines of said 7.016 acre tract and a called 5.8806 acre tract described and recorded under H.C.C.F. No. X209587 also the South lines of Lot 61 through Lot 76 of Katy Country Estates, an unrecorded subdivision to a concrete monument found for the southeast corner of said Lot 76 and the Southwest corner of a called 19.3136 acre tract described and recorded under H.C.C.F. No. X407934;

THENCE, N 87° 46' 36" E, a distance of 852.54 feet continuing along the North line of said 235.55 acre tract and South line of said 19.3136 acre tract to a 3/8-inch iron rod found for the Northeast corner of said 235.55 acre tract and the herein described tract and the Southeast corner of said 19.3136 acre tract, said iron rod being in the West right-of-way line of said Stockdick Road;

THENCE, S 02° 04' 14" E, a distance of 2,614.01 feet along said West right-of-way line to the POINT OF BEGINNING and containing 247.03 acres of land. Bearing orientation is based on the Texas Coordinate System South Central Zone 4204, NAD83.

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 7910, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7910.106 to read as follows:

Sec. 7910.106. 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, 2015.

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