By: Oliverson (Senate Sponsor - Bettencourt) H.B. No. 1379 (In the Senate - Received from the House April 29, 2019; April 30, 2019, read first time and referred to Committee on Intergovernmental Relations; May 15, 2019, reported favorably by the following vote: Yeas 7, Nays 0; May 15, 2019, 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. 565; 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 8036 to read as follows: CHAPTER 8036. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 565 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8036.0101. 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. 565. Sec. 8036.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8036.0103. CONFIRMATION AND DIRECTOR 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. 8036.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8036.0103 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. 8036.0105. 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. 8036.0106. 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. 8036.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8036.0202, directors serve staggered four-year terms. Sec. 8036.0202. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Amy Koy; (2) Elizabeth Reeves; (3) Taylor Lewis Gaver; (4) Brandy Botter; and (5) Hollye Seabolt. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8036.0103; 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 8036.0103 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 8036.0103; 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. 8036.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8036.0302. 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. 8036.0303. 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. 8036.0304. 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. 8036.0305. 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. 8036.0401. 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 8036.0403. (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. 8036.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8036.0401, 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. 8036.0403. 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. 8036.0501. 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. 8036.0502. 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. 8036.0503. 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. 565 initially includes all the territory contained in the following area: Being a 104.21 acre tract of land located in the Harris County School Land Survey, Section 27 and Section 28, A-333, Harris County, Texas; said 104.21 acre tract being a portion of a called 56.491 acre tract of land recorded in Clerk's File Number RP-2018-392482 of the Official Public Records of Real Property Harris County (O.P.R.R.P.H.C.), Texas and the remainder of a called 51.1936 acre tract of land recorded in Clerk's File No. M000378 of the O.P.R.R.P.H.C.; said 104.21 acre tract being more particularly described by metes and bounds in two tracts as follows (all bearings are referenced to the Texas Coordinate System, NAD 83, 2001 Adj., South Central Zone): Tract 1- 55.37 Acres Beginning at a 1-1/4-inch iron rod found at the southeast corner of said called 56.491 acre tract and a westerly interior corner of a called 75.9019 acre tract of land recorded in Clerk's File Number R062458 of the O.P.R.R.P.H.C. 1. Thence, with the south line of said called 56.491 acre tract, a westerly line of said called 75.9019 acre tract, the north line of a called 9.737 acre tract of land recorded in Clerk's File Number U588970, the north line of a called 9.736 acre tract of land recorded in Clerk's File Number U496673, and the north line of a called 4.736 acre tract (north half) of land recorded in Clerk's File Number 20140111501 all of the O.P.R.R.P.H.C, South 87 degrees 50 minutes 16 seconds West (called S89°49'29"W), a distance of 1,619.54 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found on the east right-of-way (R.O.W.) line of Becker Road (66-feet wide) from which a PK nail found for the southwest corner of said called 56.491 acre tract bears S87°50'16"W, 33.00'; 2. Thence, with said east R.O.W. line, North 02 degrees 09 minutes 37 seconds West, a distance of 1,484.67 feet to a 5/8-inch iron rod found on the north line of said called 56.491 acre tract and south line of a called 10.039 acre tract of land recorded in Clerk's File No. 20120062218 of the O.P.R.R.P.H.C.; 3. Thence, with the north line of said called 56.491 acre tract common with the south line of said called 10.039 acre tract, North 87 degrees 38 minutes 44 seconds East (called North 89 degrees 38 minutes 21 seconds East), a distance of 1,623.50 feet (called 1623.69 feet) to the northeast corner of said called 56.491 acre tract, the southwest corner of said call 10.039 acre tract and being on the west line of aforesaid called 75.9019 acre tract; 4. Thence, with the east line of said called 56.491 acre tract common with the west line of said called 75.9019 are tract, South 02 degrees 00 minutes 29 seconds East (called South 00 degrees 00 minutes 52 seconds East), a distance of 1,490.13 feet (called 1489.98 feet) to the Point of Beginning and containing 55.37 acres of land. Tract 2- 48.84 Acres Beginning at a 1-inch iron pipe found at the northeasterly corner of a called two acre tract of land recorded in the name of Lendell Martin and Lawanna Martin, co-trustees of the Justin Clint Martin 1994 Investment Trust in C.F. No. X651859 of the O.P.R.R.P.H.C., and being at the intersection of an interior south line of said 51.1936 acre tract with the westerly right-of-way line of Becker Road (66-feet wide) as established by the map of Harris County School Land recorded in Volume 17, Pages 222 and 223 of the Deed Records of Harris County; 1. South 87 degrees 57 minutes 49 seconds West, a distance of 484.00 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found at an interior corner of said 51.1936 acre tract and the northwest corner of said two acre tract; 2. South 02 degrees 09 minutes 19 seconds East, a distance of 180.00 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found at an interior corner of said 51.1936 acre tract and the southwest corner of said two acre tract, from which a found 5/8-inch iron rod bears North 87 degrees 54 minutes 26 seconds East, a distance of 1.18 feet; 3. North 87 degrees 57 minutes 49 seconds East, a distance of 484.00 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found at the southeast corner of said two acre tract and being on the aforesaid westerly right-of-way line of Becker Road, from which a found 1-inch iron pipe bears North 49 degrees 58 minutes 30 seconds East, a distance of 1.81 feet; 4. Thence, with said westerly right-of-way line of Becker Road, South 02 degrees 09 minutes 19 seconds East, a distance of 1,141.31 feet to a 5/8-inch iron rod found on the southerly line of said 51.1936 acre tract and the northerly line of a called 20.00 acre tract of land recorded in the name of Tye E. Smith and wife, Patricia B. Smith in C.F. No. S272354 of the O.P.R.R.P.H.C.; 5. Thence, with said southerly line of the 51.1936 acre tract and said northerly line of the 20.00 acre tract, South 88 degrees 01 minutes 34 seconds West, a distance of 1,190.54 feet to a 5/8-inch iron rod found at the southwest corner of said 51.1936 acre tract and an interior corner of said 20.00 acre tract; 6. Thence, with the westerly line of said 51.1936 acre tract, an easterly line of said 20.00 acre tract, and the easterly line of a called 58.4349 acre tract of land recorded in the name of John Bryan Lowe, Jr. in C.F. No. M000380 of the O.P.R.R.P.H.C., North 02 degrees 10 minutes 06 seconds West, a distance of 1,859.46 feet to a 5/8-inch iron rod found on the southerly right-of-way line of Botkins Road (66-feet wide) as established by aforesaid map of Harris County School Land; 7. Thence, with said southerly right-of-way line of Botkins Road, North 88 degrees 00 minutes 04 seconds East, a distance of 1,190.96 feet to a 3/4-inch iron rod found at the intersection with aforesaid westerly right-of-way line of Becker Road; 8. Thence, with said westerly right-of-way line of Becker Road, South 02 degrees 09 minutes 19 seconds East, a distance of 538.67 feet to the Point of Beginning and containing 48.84 acres of land. Parcel 1- 55.37 Acres Parcel 2- 48.84 Acres Total - 104.21 Acres 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 8036, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8036.0306 to read as follows: Sec. 8036.0306. 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, 2019. * * * * *