By: Schofield H.B. No. 5699
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain territory from Harris County
Municipal Utility District No. 405.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITION.In this Act, "district" means the
Harris County Municipal Utility District No. 405.
SECTION 2. EXCLUSION OF TERRITORY. Notwithstanding any
other law, the district may enter into a written contract with the
owner of undeveloped property within the district for exclusion of
the property from the district on terms and conditions the
district's board of directors considers advantageous for the
district. Upon satisfaction of the terms and conditions of the
contract, the district may exclude the property.
SECTION 3. RESULTS OF EXCLUSION. (a) Debt service taxes
levied on the excluded property remain pledged as security for the
district's outstanding indebtedness and the district shall
continue to levy and collect debt service taxes on the excluded land
until the excluded property's pro rata share of the district's
indebtedness is paid in full as provided herein.
(b) Except as provided in the contract for exclusion or in
Section 5 herein, on issuance of an order excluding property the
property is no longer part of the district and is not entitled to
any services from the district.
(c) Until paid in full as provided herein, the excluded
property's pro rata share of the district's indebtedness remains
the obligation of the owner of the excluded property and continues
to be secured by statutory liens on the excluded property.
(d) A copy of the order excluding the property from the
district shall be recorded by the district in the real property
records of Harris County.
SECTION 4. RIGHTS OF BONDHOLDERS. The exclusion of
property under this Act does not diminish or impair the rights of
the holders of any outstanding and unpaid bonds, warrants, or other
certificates of indebtedness of the district.
SECTION 5. APPORTIONMENT OF DISTRICT INDEBTEDNESS.(a) The
excluded property is not released from the payment of its pro rata
share of the district's indebtedness. The contract for exclusion
shall state the amount of or method to determine the excluded
property's pro rata share of the district's indebtedness.
(b) The district shall continue to levy debt service taxes
each year on the excluded property at the same rate levied on other
property of the district. The taxes collected shall be applied
exclusively to the payment of the excluded property's pro rata
share of the district's indebtedness.
(c) The owner of any part of the excluded property at any
time may pay in full the remaining unpaid portion of the excluded
property's pro rata share of the district's indebtedness.
(d) Upon payment in full of the excluded property's pro rata
share of the district's indebtedness, the excluded property is
thereafter released from payment of the district's debt service
taxes.
SECTION 6. RELIANCE ON PRIOR ELECTION. Notwithstanding any
other law, the District may issue any unissued additional debt
approved by voters of the district before the exclusion of property
without holding a new election.
SECTION 7. Harris County Municipal Utility District No. 405
retains all the rights, powers, privileges, authority, duties, and
functions that it had before the effective date of this Act.
SECTION 8. (a)The legislature validates and confirms all
governmental acts and proceedings of Harris County Municipal
Utility District No. 405 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 9. NOTICE. (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 10. EFFECTIVE DATE. 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, 2025.