Bill Text: TX SB2604 | 2023-2024 | 88th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of the Harris County Municipal Utility District No. 589; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2023-06-16 - Vetoed by the Governor [SB2604 Detail]
Download: Texas-2023-SB2604-Comm_Sub.html
Bill Title: Relating to the creation of the Harris County Municipal Utility District No. 589; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2023-06-16 - Vetoed by the Governor [SB2604 Detail]
Download: Texas-2023-SB2604-Comm_Sub.html
By: Miles | S.B. No. 2604 | |
(In the Senate - Filed April 12, 2023; April 13, 2023, read | ||
first time and referred to Committee on Local Government; | ||
April 28, 2023, reported favorably by the following vote: Yeas 7, | ||
Nays 0; April 28, 2023, sent to printer.) | ||
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relating to the creation of the Harris County Municipal Utility | ||
District No. 589; 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 8005A to read as follows: | ||
CHAPTER 8005A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 589 | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 8005A.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. 589. | ||
Sec. 8005A.0102. NATURE OF DISTRICT. The district is a | ||
municipal utility district created under Section 59, Article XVI, | ||
Texas Constitution. | ||
Sec. 8005A.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. 8005A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
temporary directors may not hold an election under Section | ||
8005A.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 as required by | ||
applicable law. | ||
Sec. 8005A.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. 8005A.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. 8005A.0201. GOVERNING BODY; TERMS. (a) The district | ||
is governed by a board of five elected directors. | ||
(b) Except as provided by Section 8005A.0202, directors | ||
serve staggered four-year terms. | ||
Sec. 8005A.0202. TEMPORARY DIRECTORS. (a) The temporary | ||
board consists of: | ||
(1) Steven Thorin; | ||
(2) Ethan Zenzen; | ||
(3) Creager Davis; | ||
(4) Greg Monette; and | ||
(5) Christy Nayes Bowen. | ||
(b) Temporary directors serve until the earlier of: | ||
(1) the date permanent directors are elected under | ||
Section 8005A.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 8005A.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 8005A.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. 8005A.0301. GENERAL POWERS AND DUTIES. The district | ||
has the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 8005A.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. 8005A.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. 8005A.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. 8005A.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. 8005A.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 | ||
8005A.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. 8005A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
authorized at an election held under Section 8005A.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. 8005A.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. 8005A.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. 8005A.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. 8005A.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. 589 initially includes all the territory contained in the | ||
following area: | ||
BEING 177.5513 acres of land in the Eli Noland Survey, | ||
Abstract Number 600, City of Houston, Harris County, Texas, being | ||
out of that certain 259 acre tract of land described in deed to Max | ||
Taub and Sam Taub, recorded in Volume 240, Page 227 of the Harris | ||
County Deed Records and being part of that tract described as Tract | ||
4 in the deed to Saltmine Investment Partnership, LTD., recorded in | ||
Harris County Clerk's File Number U711769, and being more | ||
particularly described by metes and bounds as follows: | ||
COMMENCING from a 5/8 inch iron rod found in the south line of | ||
Little York Road (width varies) at the northwest corner of a 10.00 | ||
acre tract of land described in deed to North Forest Independent | ||
School District and recorded in Volume 4512, Page 38 of the Harris | ||
County Deed Records; | ||
THENCE S.02°17'20"E. 1039.16 feet along the west line of said | ||
10.00 acre tract to a 5/8 inch iron rod with "ATKINSON 5897" cap | ||
found in the center line of a 80 foot wide Harris County Flood | ||
Control District drainage easement as described in Volume 3171, | ||
Page 105 of the Harris County Deed Records; marking the PLACE OF | ||
BEGINNING for the herein described tract; | ||
THENCE S.56°33'02"E. 432.20 feet along the centerline of said | ||
80 foot wide Harris County Flood Control District drainage easement | ||
to a point being the northwest corner of a tract of land described | ||
in deed to GC Community Development Corporation INC. and recorded | ||
in Harris County Clerk's File Number RP-2020-539585; | ||
THENCE S.02°17'20"E. 2556.76 feet along the west line of said | ||
GC Community Development Corporation INC. tract of land, and the | ||
west line of a the Cockburn Tract, an unrecorded subdivision to a 2 | ||
inch iron pipe found in the north line of a tract described in deed | ||
to Caddo 67 LLC, and recorded in Harris County Clerk's File Number | ||
RP-2020-286028; | ||
THENCE S.87°26'22"W. 3390.12 feet along the north line of said | ||
Caddo 67 LLC, tract and the north line of Melbourne Place, Section | ||
Three Subdivision recorded in Volume 49, Page 37 of the Harris | ||
County Map Records to a 5/8 inch iron rod with "ATKINSON 5897" cap | ||
found at the southeast corner of a 6.8361 acre tract of land | ||
described in Deed of Trust to Joseph Bruno and recorded in Harris | ||
County Clerk's File Number H825572 from which a found 3/4 inch | ||
galvanized iron pipe bears S.87°26'22"W. 742.49 feet; | ||
THENCE N.02°46'11"W. 802.69 feet along the east line of said | ||
6.8361 acre tract of land to a 3/4 inch iron rod found in the | ||
southeasterly line of a 100 foot wide Beaumont-Sour Lake and | ||
Western Railroad recorded in Volume 194, Page 45 of the Harris | ||
County Deed Records; | ||
THENCE N.40°03'54"E. 2619.32 feet along the southeasterly | ||
line of said Beaumont-Sour Lake and Western Railroad to a 5/8 inch | ||
iron rod with "ATKINSON 5897" cap found in the south line of Lot 81 | ||
of Busch Subdivision as shown on the plat thereof recorded in Volume | ||
1A, Page 8 of the Harris County Deed Records; | ||
THENCE N.87°38'02"E. 676.00 feet along a south line of said | ||
Lot 81,Lot 80 and Lot 79 to a 1 inch iron pipe found for the | ||
southeast corner of said Lot 79, Busch Subdivision; | ||
THENCE N.02°01'45"W. 519.93 feet along the east line of said | ||
Lot 79, Lot 78 of said Busch Subdivision to a 5/8 inch iron rod with | ||
"ATKINSON 5897" cap set for corner in the centerline of said 80 foot | ||
wide Harris County Flood Control District Easement; | ||
THENCE S.56°33'02"E. 742.88 feet along the centerline of said | ||
80 foot wide Harris County Flood Control District Easement to the | ||
PLACE OF BEGINNING. | ||
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 | ||
8005A, Special District Local Laws Code, as added by Section 1 of | ||
this Act, is amended by adding Section 8005A.0306 to read as | ||
follows: | ||
Sec. 8005A.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, 2023. | ||
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