bill lets MUD No. 405 drop undeveloped land

The text as introduced · 824 words

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.