By: Oliverson (Senate Sponsor - Kolkhorst) H.B. No. 5385
         (In the Senate - Received from the House May 10, 2023;
  May 10, 2023, read first time and referred to Committee on Local
  Government; May 15, 2023, reported favorably by the following
  vote:  Yeas 7, Nays 0; May 15, 2023, 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. 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.
 
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