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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Harris County Municipal Utility |
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District No. 405 to exclude territory; validating and confirming |
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all previous acts of the district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8024A to read as follows: |
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CHAPTER 8024A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 405 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8024A.0101. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "District" means the Harris County Municipal |
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Utility District No. 405. |
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SUBCHAPTER B. POWERS AND DUTIES |
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Sec. 8024A.0201. EXCLUSION OF PROPERTY BY CONTRACT. (a) |
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Notwithstanding any other law, the district may enter into a |
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written contract with an owner of undeveloped property in the |
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district to exclude the property from the district on terms and |
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conditions the board considers advantageous for the district. |
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(b) The district may issue an order excluding the property |
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from the district only if the terms and conditions of the contract |
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are satisfied. The district shall record a copy of the order in the |
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real property records of Harris County. |
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(c) Except as provided by the contract described by |
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Subsection (a) and Section 8024A.0202, on issuance of the order, |
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the excluded property is no longer part of the district and is not |
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entitled to any services from the district. |
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Sec. 8024A.0202. EFFECT OF EXCLUSION ON INDEBTEDNESS AND |
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TAXES. (a) Until a property's pro rata share of the district's |
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indebtedness is paid in full after the property is excluded from the |
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district under Section 8024A.0201: |
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(1) the excluded property's pro rata share of the |
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district's indebtedness remains the obligation of the owner of the |
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excluded property and continues to be secured by statutory liens on |
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the excluded property; |
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(2) the district shall continue to levy and collect |
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debt service taxes each year on the excluded property at the same |
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rate levied on other property in the district; and |
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(3) the taxes collected under Subdivision (2) remain |
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pledged as security for the district's indebtedness and shall be |
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applied exclusively to the payment of the excluded property's pro |
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rata share of the district's indebtedness. |
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(b) The contract for exclusion must state the amount of or a |
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method of determining the excluded property's pro rata share of the |
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district's indebtedness. |
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(c) The owner of any part of the excluded property at any |
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time may pay in full the remaining unpaid portion of the excluded |
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property's pro rata share of the district's indebtedness. |
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(d) On payment in full of the excluded property's pro rata |
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share of the district's indebtedness, the excluded property is |
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released from payment of the district's debt service taxes. |
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Sec. 8024A.0203. RIGHTS OF BONDHOLDERS. The exclusion of |
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property from the district under Section 8024A.0201 does not |
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diminish or impair the rights of the holders of any outstanding and |
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unpaid bonds, warrants, or other certificates of indebtedness of |
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the district. |
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Sec. 8024A.0204. RELIANCE ON PRIOR ELECTION. |
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Notwithstanding any other law, the district may issue any unissued |
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additional bonds, notes, or other obligations approved by voters of |
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the district before the exclusion of property from the district |
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under Section 8024A.0201 without holding a new election to |
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authorize the issuance of the bonds, notes, or other obligations. |
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SECTION 2. The Harris County Municipal Utility District |
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No. 405 retains all the rights, powers, privileges, authority, |
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duties, and functions that it had before the effective date of this |
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Act. |
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SECTION 3. (a) The legislature validates and confirms all |
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governmental acts and proceedings of the district that were taken |
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before the effective date of this Act. |
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(b) This section does not apply to any matter that on the |
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effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final court |
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judgment; or |
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(2) has been held invalid by a final court judgment. |
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SECTION 4. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |