H.B. No. 4594 AN ACT relating to the creation of the Harris County Municipal Utility District No. 576; 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 7926A to read as follows: CHAPTER 7926A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 576 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7926A.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. 576. Sec. 7926A.0102. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 7926A.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. 7926A.0104. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7926A.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. 7926A.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. 7926A.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. 7926A.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 7926A.0202, directors serve staggered four-year terms. Sec. 7926A.0202. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Mark Crosswell; (2) Fred Wick; (3) Aaron Brown; (4) Tim Garde; and (5) John Connolly. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 7926A.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 7926A.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 7926A.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. 7926A.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 7926A.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. 7926A.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. 7926A.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. 7926A.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. 7926A.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 7926A.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. 7926A.0402. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7926A.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. 7926A.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. 7926A.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. 7926A.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. 7926A.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. 576 initially includes all the territory contained in the following area: Being a 617.0 acre tract of land located in the James O'Brien Survey, Abstract No. 615 in Harris County, Texas; said 617.0 acre tract being all of a called 617.0 acre tract of land recorded in the name of Emptor Hockley, LLC. in Clerk's File (C.F.) No. RP-2020-106668 of the Official Public Records of Real Property of Harris County (O.P.R.R.P.H.C.); said 617.0 acre tract being more particularly described by metes and bounds as follows (all bearings are referenced to the Texas Coordinate System, North American Datum of 1983 (NAD83), South Central Zone): Beginning at a 1/2-inch iron rod found at the most easterly southeast corner of said 617.0 acre tract and the northeast corner of a called 10.0814 acre tract of land recorded in the name of C. Sanchez Children's Commercial Real Estate Investments, Ltd. in C.F. No. RP-2019-1083 of the O.P.R.R.P.H.C., and being on the westerly right-of-way line of Warren Ranch Road (60-feet wide); 1. Thence, with a southerly line of said 617.0 acre tract and the northerly line of said 10.0814 acre tract, South 88 degrees 40 minutes 41 seconds West, a distance of 256.66 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found; 2. Thence, continuing with said southerly line of the 617.0 acre tract and the northerly line of said 10.0814 acre tract, South 88 degrees 48 minutes 30 seconds West, a distance of 360.03 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found at an interior corner of said 617.0 acre tract and the northwest corner of said 10.0814 acre tract; 3. Thence, with an easterly line of said 617.0 acre tract and the westerly line of said 10.0814 acre tract, South 02 degrees 08 minutes 06 seconds East, a distance of 713.51 feet to a 1/2-inch iron rod found at the most southerly southeast corner of said 617.0 acre tract and the southwest corner of said 10.0814 acre tract, and being on the northerly right-of-way line of Mound Road (50-feet wide); 4. Thence, with the southerly line of said 617.0 acre tract and said northerly right-of-way line of Mound Road, South 87 degrees 56 minutes 38 seconds West, a distance of 968.79 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found; 5. Thence, continuing with said southerly line of the 617.0 acre tract and said northerly right-of-way line of Mound Road, South 87 degrees 54 minutes 14 seconds West, a distance of 1,722.99 feet to a 1/2-inch iron rod found at the southeast corner of a called 105.000 acre tract of land recorded in the name of James A. Warren in Clerk's File No. 20140186578 of the O.P.R.R.P.H.C.; 6. Thence, with the easterly line of said 105.000 acre tract, North 02 degrees 59 minutes 19 seconds West, at 1,758.45 feet pass a found 1/2-inch iron rod and continuing a total distance of 3,930.54 feet to a 1/2-inch iron rod with cap stamped "RPLS 2085" found at an interior corner of aforesaid 617.0 acre tract and the northeast corner of said 105.000 acre tract; 7. Thence, with the southerly line of said 617.0 acre tract, the northerly line of said 105.000 acre tract, and the northerly line of a called 95.000 acre tract of land recorded in the name of the estate of John W. Warren, IV, by Nancy Warren, independent co-executor and James A. Warren, independent co-executor in C.F. No. 20140187356 of the O.P.R.R.P.H.C., South 88 degrees 07 minutes 49 seconds West, at a distance of 1,163.10 feet pass a 1/2-inch iron rod with cap stamped "RPLS 2085" found at the northwest corner of said 105.000 acre tract and the northeast corner of said 95.000 acre tract and continuing a total distance of 2,215.06 feet to a 1/2-inch rod found at an interior corner of said 617.0 acre tract, the northwest corner of said 95.000 acre tract, and the northeast corner of a called 447.471 acre tract of land (Tract II) recorded in the name of Hilcroft-Medstar Joint Venture in C.F. No. Y173252 of the O.P.R.R.P.H.C.; 8. Thence, continuing with the southerly line of said 617.0 acre tract and the northerly line of said 447.471 acre tract, South 87 degrees 45 minutes 02 seconds West, a distance of 4,977.98 feet to a 1-inch iron pipe found at the most westerly southwest corner of said 617.0 acre tract and the northwest corner of said 447.471 acre tract, and being on the easterly line of a called 649.4535 acre tract of land recorded in the name of Story-Lindsey, Family Limited Partnership in C.F. No. S350808 of the O.P.R.R.P.H.C.; 9. Thence, with the westerly line of said 617.0 acre tract and said easterly line of the 649.4535 acre tract, North 03 degrees 22 minutes 21 seconds West, a distance of 1,043.15 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found; 10. Thence, continuing with said westerly line of the 617.0 acre tract and said easterly line of the 649.4535 acre tract, North 03 degrees 35 minutes 34 seconds West, a distance of 310.26 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found at the northwest corner of said 617.0 acre tract, the northeast corner of said 649.4535 acre tract, the southeast corner of a called 646.727 acre tract recorded in the name of Story-Lindsey, Family Limited Partnership in C.F. No. S350808 of the O.P.R.R.P.H.C., and the southwest corner of a called 636.3636 acre tract of land recorded in the name of Story-Lindsey, Family Limited Partnership in C.F. No. S350808 of the O.P.R.R.P.H.C.; Thence, with the northerly line of said 617.0 acre tract and the southerly line of said 636.3636 acre tract, the following four (4) courses: 11. North 88 degrees 00 minutes 05 seconds East, a distance of 3,037.93 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found; 12. North 87 degrees 46 minutes 27 seconds East, a distance of 423.91 feet to a 5/8-inch iron rod with cap stamped "COSTELLO INC" found; 13. North 87 degrees 55 minutes 43 seconds East, a distance of 1,014.75 feet to a 1/2-inch iron rod found; 14. North 87 degrees 57 minutes 47 seconds East, a distance of 863.26 feet to a 1/2-inch iron rod with cap stamped "PREJEAN" found at the southeast corner of said 636.3636 acre tract and the southwest corner of a called 197.0000 acre tract of land recorded in the name of DXC Technology Services LLC. in C.F. No. RP-2018-66195 of the O.P.R.R.P.H.C.; 15. Thence, with said northerly line of the 617.0 acre tract , the southerly line of said 197.0000 acre tract, the southerly line of a called 389.313 acre tract of land (Tract I) recorded in the name of Hilcroft-Medstar Joint Venture in C.F. No. Y173252 of the O.P.R.R.P.H.C., and the southerly line of a called 39.365 acre tract of land recorded in the name of Floyd Emanuel Dennison and wife, Ruby Dennison in C.F. No. J223460 of the O.P.R.R.P.H.C., North 88 degrees 01 minutes 10 seconds East, a distance of 5,264.15 feet to a 1-1/4-inch iron pipe found at the northeast corner of said 617.0 acre tract and the southeast corner of said 39.365 acre tract, and being on the westerly right-of-way line of aforesaid Warren Ranch Road; 16. Thence, with the easterly line of said 617.0 acre tract and said westerly right-of-way line of Warren Ranch Road, South 01 degrees 57 minutes 51 seconds East, a distance of 4,558.73 feet to the Point of Beginning and containing 617.0 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 7926A, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7926A.0306 to read as follows: Sec. 7926A.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, 2021. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 4594 was passed by the House on May 8, 2021, by the following vote: Yeas 108, Nays 31, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 4594 was passed by the Senate on May 27, 2021, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor