H.B. No. 4298 relating to the creation of the Harris County Municipal Utility District No. 553; 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 7997 to read as follows: CHAPTER 7997. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 553 SUBCHAPTER A. GENERAL PROVISIONS Sec. 7997.001. 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. 553. Sec. 7997.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 7997.003. CONFIRMATION AND DIRECTORS' 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. 7997.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 7997.003 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. Sec. 7997.005. 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, or improvement of macadamized, graveled, or paved roads described by Section 54.234, Water Code, or improvements, including storm drainage, in aid of those roads. Sec. 7997.006. 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. 7997.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 7997.052, directors serve staggered four-year terms. Sec. 7997.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Ronda Rusk; (2) Michael Kim; (3) Mark Deruesse; (4) Scott Burleson; and (5) Art Musgrove. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 7997.003; 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 7997.003 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 7997.003; 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. 7997.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 7997.102. 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. 7997.103. AUTHORITY FOR ROAD PROJECTS. (a) Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads described by Section 54.234, Water Code, or improvements, including storm drainage, in aid of those roads. (b) The district may exercise the powers provided by this section without submitting a petition to or obtaining approval from the commission as required by Section 54.234, Water Code. Sec. 7997.104. APPROVAL OF ROAD PROJECT. (a) The district may not undertake a road project authorized by Section 7997.103 unless: (1) each municipality or county that will operate and maintain the road has approved the plans and specifications of the road project, if a municipality or county will operate and maintain the road; or (2) the Texas Transportation Commission has approved the plans and specifications of the road project, if the state will operate and maintain the road. (b) Except as provided by Subsection (a), the district is not required to obtain approval from the Texas Transportation Commission to design, acquire, construct, finance, issue bonds for, improve, or convey a road project. Sec. 7997.105. 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. Sec. 7997.106. LIMITATION ON USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain outside the district to acquire a site or easement for: (1) a road project authorized by Section 7997.103; or (2) a recreational facility as defined by Section 49.462, Water Code. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 7997.151. 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 7997.153. (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. 7997.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 7997.151, 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. 7997.153. 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. 7997.201. 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. 7997.202. 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. 7997.203. 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. 553 initially includes all the territory contained in the following area: Approximately 266.85 acres of land, being the following tracts of land: 1. A called 98.5 acre tract of land conveyed to Gulf Coast Land Trust in deed of gift recorded in Clerk's File No. 20120599690 in the Official Public Records of Harris County, Texas, said description being referenced in Clerk's File No. E35554 in the Official Public Records of Harris County, Texas and further described in Volume 5676, Page 103 in the Harris County Deed Records; 2. A called 63.7407 acre tract of land conveyed to Bauer Road Properties, LLC described in a deed recorded in Clerk's File No. 20150383255 in the Official Public Records of Harris County, Texas; 3. A called 26.1706 acre tract of land conveyed to 22803 Scheil Partners, LLC described in a deed recorded in Clerk's File No. 20130231162 in the Official Public Record of Harris County, Texas; 4. A called 1.576 acre tract (Tract 1), a called 0.1514 acre tract (Tract 2), and a called 0.1214 acre (Tract 3) tract of land conveyed to 22803 Scheil Partners, LLC described in a deed recorded in Clerk's File No. RP-2016-201349 in the Official Public Records of Harris County, Texas; 5. A called 58.5889 acre tract of land (Tract 1) and a called 34.9999 acre tract of land (Tract 2) conveyed to 93 Scheil Road LTD. described in a deed recorded in Clerk's File No. 20110106409 in the Official Public Records of Harris County, Texas; SAVE AND EXCEPT a called 17.0000 acre tract (Tract 1) out of said the 58.5889 acre tract recorded in in Clerk's File No. 20130150358 in the Official Public Records of Harris County, Texas; all tracts located in the William McCann Survey, Abstract No. 585 and the J.B. Baker Survey, Abstract No. 116 in Harris County, Texas. Said 266.85 acre tract being more fully described as follows, with bearings based on the west line of said 63.7407 acre tract the bearing being N 00°24'39" W: BEGINNING: At a 3/4 inch iron rod found for the northwest corner of said 63.7407 acre tract, in the east right of way of Bauer road; THENCE: S 89°46'26" E, along and with the north line of said 63.7407 acre tract, an approximate distance of 1718.62 feet to a point corner in the north line of said 63.7407 acre tract, the southwest corner of said 34.9999 acre tract; THENCE: N 00°00'34" W, along and with the west line of said 34.9999 acre tract, the west line of said 58.5889 acre tract, an approximate distance of 922.92 feet to a point at the northwest corner of said 58.5889 acre tract; THENCE: S 89°42'56" E, along and with the north line of said 58.5889 acre tract, an approximate distance of 1513.57 feet to a point for an interior corner of said 58.5889 acre tract; THENCE: N 01°07'00" E, along and with the west line of said 58.5889 acre tract, an approximate distance of 905.07 feet to a point at the southwest corner of said 17.0000 acre tract; THENCE: S 89°58'02" E, along and with the south line of said 17.0000 acre tract, approximate distance of 1048.77 feet to a point for the southeast corner of said 17.0000 acre tract, in the east line of said 58.5889 acre tract; THENCE: S 00°01'58" W, along and with the east line of said 58.5889 acre tract, the east line of said 34.9999 tract, and a east line of said 26.1706 acre tract, an approximate distance of 1913.91 feet to a point for the southeast corner of said 26.1706 acre tract; THENCE: Along and with the common line of said 26.1706 acre tract, and said 8.7235 acre tract, the following course and distance: S 89°48'33" W, an approximate distance of 691.97 feet to a point for corner, S 00°08'29" W, an approximate distance of 1160.75 feet to a point for corner at the southeast corner of said 26.1706, the southwest corner of said 8.7235 acre tract, and in the north line of said 98.5 acre tract; THENCE: S 84°08'16" E, along and with the north line of said north line of said 98.5 acre tract, the south line of said 8.7235 acre tract, an approximate distance of 304.57 feet to a point for the southeast corner of said 8.7235 acre tract, and in the west line of said 1.576 acre tract; THENCE: Along and with the common line of said 8.7235 acre tract, and said 1.576 acre tract the following course and distance: N 00°08'30" E, an approximate distance of 1132.87 feet to a point interior corner of said 8.7235 acre tract, and said 1.576 acre tract, N 89°48'33" E, an approximate distance of 389.02 feet to a point at the northeast corner of said 1.576 acre tract, the southeast corner of said 8.7235 acre tract; THENCE: Along and with the east line of said 1.576 acre tract the following course and distance: S 00°01'58" W, an approximate distance of 30.00 feet to a point for corner, S 89°48'33" W, an approximate distance of 343.24 feet to a point for corner, S 00°08'11" W, an approximate distance of 1193.49 feet to a point for corner, S 25°06'06" W, an approximate distance of 107.20 feet to a point for the south corner of said 1.576 acre tract, and in the east line of said 98.5 acre tract; THENCE: S 00°04'28" E, along and with the east line of said 98.5 acre tract an approximate distance of 246.00 feet to a point for the northwest corner of said 0.1514 acre tract; THENCE: S 81°42'19" E, along and with the north line of said 0.1514 acre tract, an approximate distance of 61.59 feet to a point for the northeast corner of said 0.1514 acre tract; THENCE: Along and with the east line of said 0.1514 acre tract the following course and distance: S 07°25'12" W, an approximate distance of 101.21 feet to a point for corner, S 52°31'04" W, an approximate distance of 59.76 feet to a point for corner, S 52°31'06" W, an approximate distance of 0.33 feet to a point for corner in the east line of said 98.5 acre tract, THENCE: S 00°04'28" E, along and with the east line of said 98.5 acre tract, an approximate distance of 129.55 feet to a point for the northwest corner of said 0.1266 acre tract, THENCE: S 39°42'53" E, an approximate distatnce of 0.40' to an angle point, THENCE: S 39°42'51" E, along and with the north line of said 0.1266 acre tract, an approximate distance of 41.05 feet to a point for the northeast corner of said 0.1266 acre tract; THENCE: Along a non-tangent curve to the left, having a radial bearing of S 84°50'12" E, a radius of 6335.67 feet, a central angle of 05°08'49", a chord bearing and approximate distance of S 02°35'24" W, 568.93 feet, for an arc length of 569.13 feet to a point for the south corner of said 0.1266 acre tract the southeast corner of said 98.5 acre tract; THENCE: N 78°08'04" W, along and with the south line of said 98.5 acre tract, an approximate distance of 3983.14 feet to a found 4"x4" conc monument for the southwest corner of said 98.5 acre tract, THENCE: N 00°10'33" W, along and with the west line of said 98.5 acre tract and also along east line of said Bauer Road, an approximate distance of 892.80 to a found 4"x4" conc monument for the northwest corner of said 98.5 acre tract and for the southwest corner of said 63.7407 acre tract; THENCE: N 00°24'39" W, (bearing basis), along and with the west line of said 63.7407 acre tract and also along the east line of said Bauer Road, an approximate distance of 892.51 feet to the POINT OF BEGINNING, and containing 266.85 acres in Harris County, Texas. Said tract being described in accordance with a survey made on the ground and a survey description and map prepared under job number 40428-00 by Pape-Dawson Engineers, Inc. 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) Section 7997.106, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house. (b) If this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 7997, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7997.106 to read as follows: Sec. 7997.106. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. (c) 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, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 4298 was passed by the House on May 19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 4298 was passed by the Senate on May 24, 2017, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor