89R29328 SCR-F
 
  By: Schofield H.B. No. 5699
 
  Substitute the following for H.B. No. 5699:
 
  By:  Gates C.S.H.B. No. 5699
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Harris County Municipal Utility
  District No. 405 to exclude territory; validating and confirming
  all previous acts of the district.
         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 8024A to read as follows:
  CHAPTER 8024A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 405
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8024A.0101.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "District" means the Harris County Municipal
  Utility District No. 405.
  SUBCHAPTER B. POWERS AND DUTIES
         Sec. 8024A.0201.  EXCLUSION OF PROPERTY BY CONTRACT. (a)
  Notwithstanding any other law, the district may enter into a
  written contract with an owner of undeveloped property in the
  district to exclude the property from the district on terms and
  conditions the board considers advantageous for the district.
         (b)  The district may issue an order excluding the property
  from the district only if the terms and conditions of the contract
  are satisfied. The district shall record a copy of the order in the
  real property records of Harris County.
         (c)  Except as provided by the contract described by
  Subsection (a) and Section 8024A.0202, on issuance of the order,
  the excluded property is no longer part of the district and is not
  entitled to any services from the district.
         Sec. 8024A.0202.  EFFECT OF EXCLUSION ON INDEBTEDNESS AND
  TAXES. (a) Until a property's pro rata share of the district's
  indebtedness is paid in full after the property is excluded from the
  district under Section 8024A.0201:
               (1)  the excluded property's pro rata share of the
  district's indebtedness remains the obligation of the owner of the
  excluded property and continues to be secured by statutory liens on
  the excluded property;
               (2)  the district shall continue to levy and collect
  debt service taxes each year on the excluded property at the same
  rate levied on other property in the district; and
               (3)  the taxes collected under Subdivision (2) remain
  pledged as security for the district's indebtedness and shall be
  applied exclusively to the payment of the excluded property's pro
  rata share of the district's indebtedness.
         (b)  The contract for exclusion must state the amount of or a
  method of determining the excluded property's pro rata share of the
  district's indebtedness.
         (c)  The owner of any part of the excluded property at any
  time may pay in full the remaining unpaid portion of the excluded
  property's pro rata share of the district's indebtedness.
         (d)  On payment in full of the excluded property's pro rata
  share of the district's indebtedness, the excluded property is
  released from payment of the district's debt service taxes.
         Sec. 8024A.0203.  RIGHTS OF BONDHOLDERS. The exclusion of
  property from the district under Section 8024A.0201 does not
  diminish or impair the rights of the holders of any outstanding and
  unpaid bonds, warrants, or other certificates of indebtedness of
  the district.
         Sec. 8024A.0204.  RELIANCE ON PRIOR ELECTION.
  Notwithstanding any other law, the district may issue before an
  exclusion of property from the district under Section 8024A.0201
  any unissued additional bonds, notes, or other obligations approved
  by voters of the district before the exclusion without holding a new
  election to authorize the issuance of the bonds, notes, or other
  obligations.
         SECTION 2.  The Harris County Municipal Utility District
  No. 405 retains all the rights, powers, privileges, authority,
  duties, and functions that it had before the effective date of this
  Act.
         SECTION 3.  (a) The legislature validates and confirms all
  governmental acts and proceedings of the district that were taken
  before the effective date of this Act.
         (b)  This section does not apply to any matter that on the
  effective date of this Act:
               (1)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final court
  judgment; or
               (2)  has been held invalid by a final court judgment.
         SECTION 4.  (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 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, 2025.