H.B. No. 4272 AN ACT relating to the creation of the Harris County Municipal Utility District No. 554; 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 7998 to read as follows: CHAPTER 7998. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 554 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7998.001. 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. 554. Sec. 7998.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 7998.003. 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. 7998.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7998.003 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. 7998.005. 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. 7998.006. 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. 7998.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 7998.052, directors serve staggered four-year terms. Sec. 7998.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Matthew O'Neill; (2) Tayo Ilori; (3) Kayvon Tabrizi; (4) Joan L. Gill; and (5) Justin Klump. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 7998.003; 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 7998.003 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 7998.003; 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. 7998.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 7998.102. 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. 7998.103. 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. 7998.104. 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. 7998.105. 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. 7998.151. 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 7998.153. (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. 7998.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7998.151, 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. 7998.153. 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. 7998.201. 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. 7998.202. 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. 7998.203. 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. 554 initially includes all the territory contained in the following area: Being 95.955 acres of land located in the Harris County School Land Survey, Abstract 332, Harris County, Texas, more particularly being all of that certain called 51.210 acre tract described in the deed from Lenert Investments, LLC to AHTX 3LLC, ET AL., by an instrument of record in File No. RP-2016-67420, Official Public Records of Real Property of said Harris County, Texas, same being a portion of that certain called 44.745 acre tract described in the deed from Cunningham Interests H, LTD. to Marlon R. Davis, by an instrument of record File No. 20150025169, Official Public Records of Harris County, Texas, said 95.955 acres being more particularly described in two (2) parts by metes and bounds as follows: TRACT ONE BEING a 51.210 acre tract of land situated in the Harris County School Land Survey A-332, being part of Lot 11 and Lot 12, Section 9, Harris County, Texas, all of a call 38.516 acre tract of land described by deed dated August 21, 2014. to Colt David Haack and wife, Annette D. Haack, recorded under Film Code No. 060-65-2281 of the Official Public Records of Real Property of Harris County, Texas and all of a call 12.694 acre tract of land described by deed dated September 11, 2014, to Colt David Haack and wife, Annette D. Haack, recorded under Film Code No. 061-08-1088 of the Official Public Records of Real Property of Harris County, Texas said 38.516 acres and 12.694 acres being part of a call 70.801 acre tract of land described by deed dated November 3, 1999, to A. J. Foyt, Jr., recorded under Clerk's File No. U071611, Official Public Records of Real Property of Harris County, Texas, said 51.210 acres being more particularly described by metes and bounds as follows: BEGINNING at a 3/4 inch iron pipe found for the northeast corner of a call 30.213 acre tract of land described by deed dated May 6, 1998, now or formerly, Benjamin F. Pacleb and wife, Janice T. Pacleb, recorded under Clerk's File No. T055052, Official Public Records of Real Property Harris County, Texas, the southeast corner of the original call 70.801 acre tract of land same being the southeast corner of the call 38.516 acre tract of land for the POINT OF BEGINNING and southeast corner of the herein described tract; THENCE North 89 degrees 29 minutes 55 seconds West, along the north line of the call 30.213 acre tract of land, the north line of an original call 76.16 acre tract of land described by deed dated March 10, 1994, now or formerly, Randall L. Weaver and Dana M. Weaver, recorded under Clerk's File No. P763344, Official Public Records of Real Property Harris County, Texas, the north line of a call 20.00 acre tract of land described by deed dated May 20, 1996, now or formerly, Xavier A. Cantu et al., recorded under Clerk's File No. R939784, Official Public Records of Real Property Harris County, Texas, the north line of a call 7.00 acre tract of land described by deed dated May 9, 1996, now or formerly, Jimmy Cantu. And Ruth Cantu, recorded under Clerk's File No. R924594, Official Public Records of Real Property Harris County, Texas, the north line of a call 15.39 acre tract of land, more or less, described by deed dated September 16, 1994, now or formerly, Xavier A. Cantu and Ruby Cantu, recorded under Clerk's File No. R074840, Official Public Records of Real Property Harris County, Texas, a portion of the north line of a call 12.8855 acre tract of land designated as Tract 1 by deed dated May 21, 1983, now or formerly, O. D. Hakemack, recorded under Clerk's File No. H995356, Official Public Records of Real Property Harris County, Texas, a distance of 2289.79 feet to the lower southwest corner of the call 38.516 acre tract of land for the lower southwest corner of the herein described tract, from which a 1 /2 inch rod found with a plastic identification cap bears South 0.15 feet; THENCE North 00 degrees 16 minutes 03 seconds East, a distance of 315.37 feet to a 1/2 inch iron rod found with a plastic identification cap stamped C & C Surveying for an apparent northeast corner of a tract of land described by deed dated December 20, 1942, now or formerly, Oscar A. Huenefeld, recorded in Volume 1269, Page 349, Deed Records Harris County, Texas, for an interior corner of the herein described tract; THENCE North 89 degrees 25 minutes 37 seconds West, a distance of 558.60 feet to a 1/2 inch iron rod found with a plastic identification cap in the east line of Stokes Road, the upper southwest corner of the call 70.801 acre tract of land for the upper southwest corner of the herein described tract; THENCE North 00 degrees 13 minutes 28 seconds East, along the east line of Stokes Road, at 335.11 feet pass a 1/2 inch iron rod found with a plastic identification cap for the northwest corner of the call 38.516 acre tract of land, the southwest corner of the call 12.694 acre tract of land, continuing a total distance of 564.66 feet to a 1/2 inch iron rod found with a plastic identification cap for the northwest corner of the call 12.694 acre tract of land for the northwest corner of the herein described tract; THENCE South 88 degrees 24 minutes 04 seconds East, leaving the east line of Stokes Road, a distance of 528.09 feet to a 1/2 inch iron rod found with a plastic identification cap at a fence corner post for an angle point of the call 12.694 acre tract of land for an angle point of the herein described tract; THENCE North 87 degrees 52 minutes 42 seconds East, generally along a fence line, a distance of 1684.07 feet to a 1/2 inch iron rod found with a plastic identification cap at a fence corner post for the northeast corner of the call 12.694 acre tract of land for the upper northeast corner of the herein described tract; THENCE South 00 degrees 16 minutes 22 seconds East, generally along a fence line, a distance of 296.53 feet to a 1/2 inch iron rod found with a plastic identification cap at a fence corner post in the north line of the call 38.516 acre tract of land for the southeast corner of the call 12.694 acre tract of land for an interior corner of the herein described tract; THENCE South 89 degrees 29 minutes 55 seconds East, generally along a fence line, along a portion of the north line of the call 38.516 acre tract of land, at 628.76 feet pass a fence corner post, continuing a total distance of 633.26 feet to a 1/2 inch iron rod found with a plastic identification cap in a north-south fence line for the northeast corner of the call 38.516 acre tract of land for the lower northeast corner of the herein described tract; THENCE South 00 degrees 04 minutes 35 seconds West (bearing basis), along a portion of the east line of the call 38.516 acre tract of land, a distance of 651.19 feet to the POINT OF BEGINNING, containing within these metes and bounds a 51.210 acre tract of land, more or less, as surveyed by Robert McCay, Registered Professional Land Surveyor No. 4509, September 26, 2014. TRACT TWO All that certain tract or parcel containing 44.7455 acres of land out of that certain 81.0465 acre tract of land situated in the Harris County School Land Survey, A-332 in Harris County, Texas, said 31.0465 acre tract being that same tract of land as described in a deed filed for record under Harris County Clerk's File No. 20130626732, said 44.7455 acre tract- of land being more particularly described by metes and bounds as follows: COMMENCING at a 5/8" iron rod with Tony P. Swonke RPLS 4767 cap (found) in the West right-of-way line of Binford Road, (60.00 feet in width), marking the Southeast corner of that certain call 29.971 acre tract of land as described in a deed filed for record under Harris County Clerk's File No. 20100221984 and the Northeast corner of that certain call 139.81 acre tract of land as described in a deed filed for record under Harris County Clerk's file No. 20130178495; THENCE S 00°47'37" E, a distance of 1,623.78 feet along the west right-of-way line of said Binford Road and the East line of said 139.81 acre tract of land to a 5/8" iron rod with Tony P. Swonke RPLS 4767 cap (found) marking the Southeast corner of said 139.81 acre tract of land, the Northeast corner of said 81.0465 acre tract of land and the Northeast corner and POINT OF BEGINNING of the herein described 44.7455 acre tract of land; THENCE S 02°48'43" E, a distance of 1,188.19 feet along the West right-of-way line of said Binford Road and the East line of said 81.0465 acre tract of land to a 5/8" iron rod with EIC cap (found) marking the northeast corner of a 43.9932 acre remainder of that certain call 522.223 acre tract of land as described in a deed filed for record under Harris County Clerk's File No. 20080314221, and the Easterly-Southeast corner of said 81.0465 acre tract of land and the Southeast corner of the herein described 44.7455 acre tract of land; THENCE S 86°55'14" W, a distance of 939.31 feet along the common line of said 49.9932 acre remainder tract and said 81.0465 acre tract of land to a 5/8" iron rod with EIC cap (found) for angle point; THENCE S 89°41-55" W, a distance of 653.87 feet along the common line of said 49.9932 acre remainder tract and said 81.0465 acre tract of land to a 5/8" iron rod with ElC cap (found) marking the Northwest corner of said 49.9932 acre remainder tract, an interior corner of said 81.0465 acre tract of land and the Southwest corner of the herein described 44.7455 acre tract of land; THENCE N 01°50'36" W, a distance of 1,285.12 feet to a 5/8" iron rod with EIC cap (set) in the South line of said 139.81 acre tract of land and the North line of said 81.0465 acre tract of land marking Northwest corner of the herein described 44.7455 acre tract of land; THENCE N 89°56'03" E, a distance of 1,573.03 feet along the common line of said 139.81 acre and said 81.0485 acre tracts of land to the POINT OF BEGINNING and containing 44.7455 acres of land. 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 7998, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7998.106 to read as follows: Sec. 7998.106. 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, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 4272 was passed by the House on May 9, 2017, by the following vote: Yeas 139, Nays 6, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 4272 was passed by the Senate on May 24, 2017, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor