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.
* * * * *