Texas 2023 - 88th Regular

Texas Senate Bill SB2604 Compare Versions

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1	1	S.B. No. 2604
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Harris County Municipal Utility
6	6	District No. 589; granting a limited power of eminent domain;
7	7	providing authority to issue bonds; providing authority to impose
8	8	assessments, fees, and taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle F, Title 6, Special District Local Laws
11	11	Code, is amended by adding Chapter 8005A to read as follows:
12	12	CHAPTER 8005A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 589
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 8005A.0101. DEFINITIONS. In this chapter:
15	15	(1) "Board" means the district's board of directors.
16	16	(2) "Commission" means the Texas Commission on
17	17	Environmental Quality.
18	18	(3) "Director" means a board member.
19	19	(4) "District" means the Harris County Municipal
20	20	Utility District No. 589.
21	21	Sec. 8005A.0102. NATURE OF DISTRICT. The district is a
22	22	municipal utility district created under Section 59, Article XVI,
23	23	Texas Constitution.
24	24	Sec. 8005A.0103. CONFIRMATION AND DIRECTOR ELECTION
25	25	REQUIRED. The temporary directors shall hold an election to
26	26	confirm the creation of the district and to elect five permanent
27	27	directors as provided by Section 49.102, Water Code.
28	28	Sec. 8005A.0104. CONSENT OF MUNICIPALITY REQUIRED. The
29	29	temporary directors may not hold an election under Section
30	30	8005A.0103 until each municipality in whose corporate limits or
31	31	extraterritorial jurisdiction the district is located has
32	32	consented by ordinance or resolution to the creation of the
33	33	district and to the inclusion of land in the district as required by
34	34	applicable law.
35	35	Sec. 8005A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
36	36	(a) The district is created to serve a public purpose and benefit.
37	37	(b) The district is created to accomplish the purposes of:
38	38	(1) a municipal utility district as provided by
39	39	general law and Section 59, Article XVI, Texas Constitution; and
40	40	(2) Section 52, Article III, Texas Constitution, that
41	41	relate to the construction, acquisition, improvement, operation,
42	42	or maintenance of macadamized, graveled, or paved roads, or
43	43	improvements, including storm drainage, in aid of those roads.
44	44	Sec. 8005A.0106. INITIAL DISTRICT TERRITORY. (a) The
45	45	district is initially composed of the territory described by
46	46	Section 2 of the Act enacting this chapter.
47	47	(b) The boundaries and field notes contained in Section 2 of
48	48	the Act enacting this chapter form a closure. A mistake made in the
49	49	field notes or in copying the field notes in the legislative process
50	50	does not affect the district's:
51	51	(1) organization, existence, or validity;
52	52	(2) right to issue any type of bond for the purposes
53	53	for which the district is created or to pay the principal of and
54	54	interest on a bond;
55	55	(3) right to impose a tax; or
56	56	(4) legality or operation.
57	57	SUBCHAPTER B. BOARD OF DIRECTORS
58	58	Sec. 8005A.0201. GOVERNING BODY; TERMS. (a) The district
59	59	is governed by a board of five elected directors.
60	60	(b) Except as provided by Section 8005A.0202, directors
61	61	serve staggered four-year terms.
62	62	Sec. 8005A.0202. TEMPORARY DIRECTORS. (a) The temporary
63	63	board consists of:
64	64	(1) Steven Thorin;
65	65	(2) Ethan Zenzen;
66	66	(3) Creager Davis;
67	67	(4) Greg Monette; and
68	68	(5) Christy Nayes Bowen.
69	69	(b) Temporary directors serve until the earlier of:
70	70	(1) the date permanent directors are elected under
71	71	Section 8005A.0103; or
72	72	(2) the fourth anniversary of the effective date of
73	73	the Act enacting this chapter.
74	74	(c) If permanent directors have not been elected under
75	75	Section 8005A.0103 and the terms of the temporary directors have
76	76	expired, successor temporary directors shall be appointed or
77	77	reappointed as provided by Subsection (d) to serve terms that
78	78	expire on the earlier of:
79	79	(1) the date permanent directors are elected under
80	80	Section 8005A.0103; or
81	81	(2) the fourth anniversary of the date of the
82	82	appointment or reappointment.
83	83	(d) If Subsection (c) applies, the owner or owners of a
84	84	majority of the assessed value of the real property in the district
85	85	may submit a petition to the commission requesting that the
86	86	commission appoint as successor temporary directors the five
87	87	persons named in the petition. The commission shall appoint as
88	88	successor temporary directors the five persons named in the
89	89	petition.
90	90	SUBCHAPTER C. POWERS AND DUTIES
91	91	Sec. 8005A.0301. GENERAL POWERS AND DUTIES. The district
92	92	has the powers and duties necessary to accomplish the purposes for
93	93	which the district is created.
94	94	Sec. 8005A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND
95	95	DUTIES. The district has the powers and duties provided by the
96	96	general law of this state, including Chapters 49 and 54, Water Code,
97	97	applicable to municipal utility districts created under Section 59,
98	98	Article XVI, Texas Constitution.
99	99	Sec. 8005A.0303. AUTHORITY FOR ROAD PROJECTS. Under
100	100	Section 52, Article III, Texas Constitution, the district may
101	101	design, acquire, construct, finance, issue bonds for, improve,
102	102	operate, maintain, and convey to this state, a county, or a
103	103	municipality for operation and maintenance macadamized, graveled,
104	104	or paved roads, or improvements, including storm drainage, in aid
105	105	of those roads.
106	106	Sec. 8005A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A
107	107	road project must meet all applicable construction standards,
108	108	zoning and subdivision requirements, and regulations of each
109	109	municipality in whose corporate limits or extraterritorial
110	110	jurisdiction the road project is located.
111	111	(b) If a road project is not located in the corporate limits
112	112	or extraterritorial jurisdiction of a municipality, the road
113	113	project must meet all applicable construction standards,
114	114	subdivision requirements, and regulations of each county in which
115	115	the road project is located.
116	116	(c) If the state will maintain and operate the road, the
117	117	Texas Transportation Commission must approve the plans and
118	118	specifications of the road project.
119	119	Sec. 8005A.0305. COMPLIANCE WITH MUNICIPAL CONSENT
120	120	ORDINANCE OR RESOLUTION. The district shall comply with all
121	121	applicable requirements of any ordinance or resolution that is
122	122	adopted under Section 54.016 or 54.0165, Water Code, and that
123	123	consents to the creation of the district or to the inclusion of land
124	124	in the district.
125	125	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
126	126	Sec. 8005A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a)
127	127	The district may issue, without an election, bonds and other
128	128	obligations secured by:
129	129	(1) revenue other than ad valorem taxes; or
130	130	(2) contract payments described by Section
131	131	8005A.0403.
132	132	(b) The district must hold an election in the manner
133	133	provided by Chapters 49 and 54, Water Code, to obtain voter approval
134	134	before the district may impose an ad valorem tax or issue bonds
135	135	payable from ad valorem taxes.
136	136	(c) The district may not issue bonds payable from ad valorem
137	137	taxes to finance a road project unless the issuance is approved by a
138	138	vote of a two-thirds majority of the district voters voting at an
139	139	election held for that purpose.
140	140	Sec. 8005A.0402. OPERATION AND MAINTENANCE TAX. (a) If
141	141	authorized at an election held under Section 8005A.0401, the
142	142	district may impose an operation and maintenance tax on taxable
143	143	property in the district in accordance with Section 49.107, Water
144	144	Code.
145	145	(b) The board shall determine the tax rate. The rate may not
146	146	exceed the rate approved at the election.
147	147	Sec. 8005A.0403. CONTRACT TAXES. (a) In accordance with
148	148	Section 49.108, Water Code, the district may impose a tax other than
149	149	an operation and maintenance tax and use the revenue derived from
150	150	the tax to make payments under a contract after the provisions of
151	151	the contract have been approved by a majority of the district voters
152	152	voting at an election held for that purpose.
153	153	(b) A contract approved by the district voters may contain a
154	154	provision stating that the contract may be modified or amended by
155	155	the board without further voter approval.
156	156	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
157	157	Sec. 8005A.0501. AUTHORITY TO ISSUE BONDS AND OTHER
158	158	OBLIGATIONS. The district may issue bonds or other obligations
159	159	payable wholly or partly from ad valorem taxes, impact fees,
160	160	revenue, contract payments, grants, or other district money, or any
161	161	combination of those sources, to pay for any authorized district
162	162	purpose.
163	163	Sec. 8005A.0502. TAXES FOR BONDS. At the time the district
164	164	issues bonds payable wholly or partly from ad valorem taxes, the
165	165	board shall provide for the annual imposition of a continuing
166	166	direct ad valorem tax, without limit as to rate or amount, while all
167	167	or part of the bonds are outstanding as required and in the manner
168	168	provided by Sections 54.601 and 54.602, Water Code.
169	169	Sec. 8005A.0503. BONDS FOR ROAD PROJECTS. At the time of
170	170	issuance, the total principal amount of bonds or other obligations
171	171	issued or incurred to finance road projects and payable from ad
172	172	valorem taxes may not exceed one-fourth of the assessed value of the
173	173	real property in the district.
174	174	SECTION 2. The Harris County Municipal Utility District
175	175	No. 589 initially includes all the territory contained in the
176	176	following area:
177	177	BEING 177.5513 acres of land in the Eli Noland Survey,
178	178	Abstract Number 600, City of Houston, Harris County, Texas, being
179	179	out of that certain 259 acre tract of land described in deed to Max
180	180	Taub and Sam Taub, recorded in Volume 240, Page 227 of the Harris
181	181	County Deed Records and being part of that tract described as Tract
182	182	4 in the deed to Saltmine Investment Partnership, LTD., recorded in
183	183	Harris County Clerk's File Number U711769, and being more
184	184	particularly described by metes and bounds as follows:
185	185	COMMENCING from a 5/8 inch iron rod found in the south line of
186	186	Little York Road (width varies) at the northwest corner of a 10.00
187	187	acre tract of land described in deed to North Forest Independent
188	188	School District and recorded in Volume 4512, Page 38 of the Harris
189	189	County Deed Records;
190	190	THENCE S.02°17'20"E. 1039.16 feet along the west line of said
191	191	10.00 acre tract to a 5/8 inch iron rod with "ATKINSON 5897" cap
192	192	found in the center line of a 80 foot wide Harris County Flood
193	193	Control District drainage easement as described in Volume 3171,
194	194	Page 105 of the Harris County Deed Records; marking the PLACE OF
195	195	BEGINNING for the herein described tract;
196	196	THENCE S.56°33'02"E. 432.20 feet along the centerline of said
197	197	80 foot wide Harris County Flood Control District drainage easement
198	198	to a point being the northwest corner of a tract of land described
199	199	in deed to GC Community Development Corporation INC. and recorded
200	200	in Harris County Clerk's File Number RP-2020-539585;
201	201	THENCE S.02°17'20"E. 2556.76 feet along the west line of said
202	202	GC Community Development Corporation INC. tract of land, and the
203	203	west line of a the Cockburn Tract, an unrecorded subdivision to a 2
204	204	inch iron pipe found in the north line of a tract described in deed
205	205	to Caddo 67 LLC, and recorded in Harris County Clerk's File Number
206	206	RP-2020-286028;
207	207	THENCE S.87°26'22"W. 3390.12 feet along the north line of said
208	208	Caddo 67 LLC, tract and the north line of Melbourne Place, Section
209	209	Three Subdivision recorded in Volume 49, Page 37 of the Harris
210	210	County Map Records to a 5/8 inch iron rod with "ATKINSON 5897" cap
211	211	found at the southeast corner of a 6.8361 acre tract of land
212	212	described in Deed of Trust to Joseph Bruno and recorded in Harris
213	213	County Clerk's File Number H825572 from which a found 3/4 inch
214	214	galvanized iron pipe bears S.87°26'22"W. 742.49 feet;
215	215	THENCE N.02°46'11"W. 802.69 feet along the east line of said
216	216	6.8361 acre tract of land to a 3/4 inch iron rod found in the
217	217	southeasterly line of a 100 foot wide Beaumont-Sour Lake and
218	218	Western Railroad recorded in Volume 194, Page 45 of the Harris
219	219	County Deed Records;
220	220	THENCE N.40°03'54"E. 2619.32 feet along the southeasterly
221	221	line of said Beaumont-Sour Lake and Western Railroad to a 5/8 inch
222	222	iron rod with "ATKINSON 5897" cap found in the south line of Lot 81
223	223	of Busch Subdivision as shown on the plat thereof recorded in Volume
224	224	1A, Page 8 of the Harris County Deed Records;
225	225	THENCE N.87°38'02"E. 676.00 feet along a south line of said
226	226	Lot 81,Lot 80 and Lot 79 to a 1 inch iron pipe found for the
227	227	southeast corner of said Lot 79, Busch Subdivision;
228	228	THENCE N.02°01'45"W. 519.93 feet along the east line of said
229	229	Lot 79, Lot 78 of said Busch Subdivision to a 5/8 inch iron rod with
230	230	"ATKINSON 5897" cap set for corner in the centerline of said 80 foot
231	231	wide Harris County Flood Control District Easement;
232	232	THENCE S.56°33'02"E. 742.88 feet along the centerline of said
233	233	80 foot wide Harris County Flood Control District Easement to the
234	234	PLACE OF BEGINNING.
235	235	SECTION 3. (a) The legal notice of the intention to
236	236	introduce this Act, setting forth the general substance of this
237	237	Act, has been published as provided by law, and the notice and a
238	238	copy of this Act have been furnished to all persons, agencies,
239	239	officials, or entities to which they are required to be furnished
240	240	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
241	241	Government Code.
242	242	(b) The governor, one of the required recipients, has
243	243	submitted the notice and Act to the Texas Commission on
244	244	Environmental Quality.
245	245	(c) The Texas Commission on Environmental Quality has filed
246	246	its recommendations relating to this Act with the governor, the
247	247	lieutenant governor, and the speaker of the house of
248	248	representatives within the required time.
249	249	(d) All requirements of the constitution and laws of this
250	250	state and the rules and procedures of the legislature with respect
251	251	to the notice, introduction, and passage of this Act are fulfilled
252	252	and accomplished.
253	253	SECTION 4. (a) If this Act does not receive a two-thirds
254	254	vote of all the members elected to each house, Subchapter C, Chapter
255	255	8005A, Special District Local Laws Code, as added by Section 1 of
256	256	this Act, is amended by adding Section 8005A.0306 to read as
257	257	follows:
258	258	Sec. 8005A.0306. NO EMINENT DOMAIN POWER. The district may
259	259	not exercise the power of eminent domain.
260	260	(b) This section is not intended to be an expression of a
261	261	legislative interpretation of the requirements of Section 17(c),
262	262	Article I, Texas Constitution.
263	263	SECTION 5. This Act takes effect immediately if it receives
264	264	a vote of two-thirds of all the members elected to each house, as
265	265	provided by Section 39, Article III, Texas Constitution. If this
266	266	Act does not receive the vote necessary for immediate effect, this
267	267	Act takes effect September 1, 2023.
268	268	______________________________ ______________________________
269	269	President of the Senate Speaker of the House
270	270	I hereby certify that S.B. No. 2604 passed the Senate on
271	271	May 17, 2023, by the following vote: Yeas 26, Nays 4, one present
272	272	not voting.
273	273	______________________________
274	274	Secretary of the Senate
275	275	I hereby certify that S.B. No. 2604 passed the House on
276	276	May 24, 2023, by the following vote: Yeas 103, Nays 35, one
277	277	present not voting.
278	278	______________________________
279	279	Chief Clerk of the House
280	280	Approved:
281	281	______________________________
282	282	Date
283	283	______________________________
284	284	Governor