H.B. No. 5412 AN ACT relating to the powers and duties of the Waller County Municipal Utility District No. 3. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 8237.103, Special District Local Laws Code, is amended by adding Subsection (a-1) to read as follows: (a-1) 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. SECTION 2. Subchapter C, Chapter 8237, Special District Local Laws Code, is amended by adding Section 8237.105 to read as follows: Sec. 8237.105. DIVISION OF DISTRICT. (a) The board, on its own motion or on receipt of a petition signed by the owner or owners of a majority of the assessed value of the real property in the district, may adopt an order dividing the district. (b) An order dividing the district may create one or more new districts and may provide for the continuation of the district. (c) An order dividing the district shall: (1) name any new district; (2) include the metes and bounds description of the territory of each of the districts; (3) appoint temporary directors for any new district; and (4) provide for the division of assets and liabilities between the districts. (d) The board may adopt an order dividing the district before or after the date the board holds an election to confirm the district's creation. (e) The district may be divided only if the district: (1) has never issued any bonds; and (2) is not imposing ad valorem taxes. (f) A new district created by the division of the district may not, at the time the new district is created, contain any land outside the area described by Section 2 of the Act enacting this chapter. (g) On or before the 30th day after the date of adoption of an order dividing the district, the district shall file the order with the Texas Commission on Environmental Quality and record the order in the real property records of each county in which the district is located. (h) This chapter applies to any new district created by the division of the district, and a new district has all the powers and duties of the district. (i) A new district created by the division of the district shall hold a confirmation and directors' election. (j) If the creation of the new district is confirmed, the new district shall provide the election date and results to the Texas Commission on Environmental Quality. (k) A new district created by the division of the district must hold an election as required by this chapter to obtain voter approval before the district may impose a maintenance tax or issue bonds payable wholly or partly from ad valorem taxes. (l) The district may continue to rely on confirmation, directors', bond, and tax elections held before the division. (m) Municipal consent to the creation of the district and to the inclusion of land in the district acts as municipal consent to the creation of any new district created by the division of the district and to the inclusion of land in the new district. SECTION 3. Sections 8237.103(b), (c), and (e), Special District Local Laws Code, are repealed. SECTION 4. The Waller County Municipal Utility District No. 3 retains all the rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act. SECTION 5. (a) The legislature validates and confirms all governmental acts and proceedings of the Waller County Municipal Utility District No. 3 that were taken before the effective date of this Act. (b) This section does not apply to any matter that on the effective date of this Act: (1) is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment; or (2) has been held invalid by a final court judgment. SECTION 6. (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 7. 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, 2023. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 5412 was passed by the House on May 12, 2023, by the following vote: Yeas 103, Nays 37, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 5412 was passed by the Senate on May 24, 2023, by the following vote: Yeas 28, Nays 3. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor