84R9632 TSR-F By: Creighton S.B. No. 2040 A BILL TO BE ENTITLED relating to the creation of the Harris County Municipal Utility District No. 544; 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 7924 to read as follows: CHAPTER 7924. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 544 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7924.001. 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. 544. Sec. 7924.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 7924.003. 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. 7924.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7924.003 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. 7924.005. 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. 7924.006. 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. Sec. 7924.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT REINVESTMENT ZONE. (a) The district is eligible to be included in a tax increment reinvestment zone created under Chapter 311, Tax Code. (b) If the City of Houston has created or creates a tax increment reinvestment zone described by Subsection (a) that includes all or part of the territory of the district, the City of Houston and the board of directors of the zone or a developer of property within the tax increment reinvestment zone that receives or will receive money from the tax increment fund, by contract with the district, may grant money to the district from the tax increment fund to be used for a permissible purpose of the district, including: (1) the right to pledge the money as security for a bond or other obligation issued by the district; and (2) any permissible purpose of a corporation under Section 380.002(b), Local Government Code. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 7924.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 7924.052, directors serve staggered four-year terms. Sec. 7924.052. 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 7924.003; 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 7924.003 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 7924.003; 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. 7924.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 7924.102. 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. 7924.103. 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. 7924.104. 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. 7924.105. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION. (a) 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. (b) In addition to all the rights and remedies provided by other law, if the district violates the terms of an ordinance or resolution described by Subsection (a), the municipality is entitled to injunctive relief or a writ of mandamus issued by a court requiring the district and the district's officials to observe and comply with the terms of the ordinance or resolution. Sec. 7924.106. EFFECT OF ANNEXATION BY CITY OF HOUSTON. (a) The City of Houston may annex all or part of the district into its corporate limits without annexing the entire district under the terms of a development agreement between the City of Houston and the owners of the land in the district that is covered by the development agreement. If a development agreement is not executed or the agreement has expired, nothing in this chapter limits the right of the City of Houston to annex the district. (b) If the City of Houston annexes all or part of the district into its corporate limits: (1) the district is not dissolved; (2) the ability of the district to issue bonds is not impaired or precluded; and (3) unless otherwise approved by the board and the governing body of the City of Houston, the city: (A) may not take over the property or other assets of the district; (B) may not assume any debts, liabilities, or other obligations of the district; (C) is not obligated to perform any functions of the district; and (D) is not obligated to pay a landowner or developer for expenses incurred by the landowner or developer in connection with the district that would otherwise be eligible for reimbursement from the proceeds of bonds issued by the district. (c) Notwithstanding Section 54.016(f)(2), Water Code, an allocation agreement between the City of Houston and the district that provides for the allocation of the taxes or revenues of the district and the city following the date of inclusion of all the district's territory in the corporate limits of the city may provide that the total annual ad valorem taxes collected by the city and the district from taxable property in the district may exceed the city's ad valorem tax on that property. Sec. 7924.107. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district without the written consent of the City of Houston. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 7924.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The district may issue, without an election, bonds and other obligations secured by revenue other than ad valorem taxes. (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. 7924.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7924.151, 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. SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 7924.201. 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. 7924.202. 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. 7924.203. 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. 544 initially includes all the territory contained in the following area: BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 138.03 ACRES OF LAND SITUATED IN THE WILLIAM WHITLOCK SURVEY, ABSTRACT NO. 85, HARRIS COUNTY, TEXAS, AND BEING ALL OF A CALLED 60.288 ACRE TRACT BEING PLATTED AS INDIAN SHORES SECTIONS NINE (9) AND TEN (10), UNRECORDED AND A CALLED 77.817 ACRE TRACT RECORDED IN VOLUME 1250, PAGE 74 HARRIS COUNTY DEED RECORDS, SAID 138.03 ACRE TRACT BEING THE SAME 138.0268 ACRE TRACT AS RECORDED IN H.C.C.F., NO W777169 AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS, AS FOLLOWS TO-WIT: Beginning at a 5/8 inch iron rod found in the north line of a called 233.8 acre tract as recorded in H.C.C.F. No. Y604056 and same being the Southeast corner of lot Four (4), Block Eighteen (18) of Indian Shores Section 3, according to the map or plat recorded in Volume 131, Page 32 Harris County Map Records (HCMR) and being the Southeast corner of the called 60.288 acre tract and the Southeast corner and PLACE OF BEGINNING of the tract herein described. THENCE NORTH 87 DEGREES 42 MINUTES 19 SECONDS EAST, a distance of 2299.67 feet with the north line of the Wheless tract to a 1 inch iron pipe found for the Southwest corner Lot 1, Block 8 of Rustic Acres Section 2, according to the map or plat recorded in Volume 104, Page 809 Block Book for Harris County and being the Southeast corner of the called 77.817 acre tract and the Southeast corner of this tract herein described. THENCE NORTH 17 DEGREES 11 MINUTES 18 SECONDS EAST, a distance of 1499.32 feet, (called 1500.55 feet), with the west line of said Rustic Acres Section 2 to a 5/8 inch iron rod found at the intersection of the south right-of-way of Stoker Road, having a right-of-way width of 100 feet, for the Northwest corner of Rustic Acres Section 2 and same being the Southwest corner of Indian Shores Section 6 according to the map of plat filed in Volume 165, Page 52 HCMR. THENCE NORTH 17 DEGREES 05 MINUTES 22 SECONDS EAST, a distance of 644.33 feet with the west line of said Indian Shores Section 6 to a 5/8 inch iron rod found in the south line of Lot 2, Block 6 of Indian Shores Section One according to the map or plat recorded in Volume 119, Page 63 HCMR for the Northwest corner of Indian Shores Section 6 and the Northeast corner of this tract herein described. THENCE FOLLOWING THE SOUTH BOUNDARY OF INDIAN SHORES SECTION ONE (1) IN A WESTERLY DIRECTION AS FOLLOWS THENCE SOUTH 87 DEGREES 51 MINUTES 26 SECONDS WEST, a distance of 181.78 feet to a 5/8 inch iron rod found for an angle point. THENCE NORTH 84 DEGREES 11 MINUTES 58 SECONDS WEST, a distance of 304.97 feet to a 1 inch iron pipe found for an angle point, THENCE NORTH 73 DEGREES 27 MINUTES 09 SECONDS WEST, a distance of 274.25 feet to a 1/4 inch iron rod found for an angle point, THENCE NORTH 57 DEGREES 45 MINUTES 08 SECONDS WEST, a distance of 954.57 feet to a 1 inch iron pipe found for the Northeast corner of Lot One (1), Block Four (4) of Indian Shores Section Two (2) according to the map or plat recorded in Volume 125, Page 6 HCMR for the Northwest corner of this tract. THENCE FOLLOWING THE EAST LINE OF SAID INDIAN SHORES SECTION TWO (2) AS FOLLOWS: THENCE SOUTH 40 DEGREES 25 MINUTES 36 SECONDS WEST, a distance of 240.48 feet to a 1/2 inch iron rod found at the Intersection with the south right-of-way of Running Bear Trail, having a right-of-way width of sixty (60) feet. THENCE NORTH 45 DEGREES 58 MINUTES 51 SECONDS WEST, a distance of 30.35 feet with the south right-of-way of Running Bear Trail to a 3/8 inch iron rod found for the Northeast corner at Lot 1, Block 10 of said Section 2, THENCE SOUTH 43 DEGREES 23 MINUTES 15 SECONDS WEST, a distance of 223.16 feet to a 1/2 inch iron rod found for the Southeast corner of said Lot 1, Block 10, THENCE NORTH 26 DEGREES 19 MINUTES 19 SECONDS WEST, a distance of 28.88 feet to a 1/2 inch iron rod found for the Northeast corner of Lot 2, Block 10, THENCE SOUTH 71 DEGREES 13 MINUTES 06 SECONDS WEST, a distance of 829.60 feet to a 5/8 inch iron rod found for the Southwest corner of Lot 11, Block 13, Section 2, THENCE SOUTH 18 DEGREES 44 MINUTES 18 SECONDS EAST, a distance of 80.01 feet to a 5/8 inch iron rod found for an angle point, THENCE SOUTH 16 DEGREES 03 MINUTES 16 SECONDS WEST, a distance of 523.67 feet to a 1 inch iron bolt found for an angle point, THENCE SOUTH 20 DEGREES 38 MINUTES 58 SECONDS WEST, a distance of 1006.73 feet to a 1/2 inch iron rod found for an angle point, THENCE SOUTH 64 DEGREES 27 MINUTES 48 SECONDS EAST, a distance of 214.94 feet to a 1/2 inch iron rod found for an angle point and being the Northeast corner of White Dove Trail, having a right-of-way width of sixty (60) feet, THENCE SOUTH 22 DEGREES 15 MINUTES 37 SECONDS WEST, a distance of 43.07 feet with the east right-of-way of said White Dove Trail to a 3/4 inch iron rod found for the Northwest corner of Lot 1, Block 17, Indian Shores Section 3, THENCE SOUTH 67 DEGREES 59 MINUTES 55 SECONDS EAST, a distance of 170.27 feet to a 5/8 inch iron rod found for an angle point, THENCE SOUTH 22 DEGREES 08 MINUTES 33 SECONDS WEST, a distance of 125.02 feet to a 1/2 inch iron rod found for the Northeast corner of Silver Moon Trail, having a right-of-way width of 60 feet, THENCE SOUTH 34 DEGREES 03 MINUTES 33 SECONDS WEST, a distance of 293.77 feet to a 5/8 inch iron rod found for the most south corner of Lot 5, Block 18, Section 3, THENCE SOUTH 43 DEGREES 54 MINUTES 05 SECONDS EAST, a distance of 151.12 feet to the PLACE OF BEGINNING and containing 138.03 acres more or less. 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) Section 7924.107, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house. (b) If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 7924, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7924.107 to read as follows: Sec. 7924.107. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. (c) 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.