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HB5685 • 2025

Relating to the creation of the Waller County Improvement District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Relating to the creation of the Waller County Improvement District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Kitzman
Last action
2025-05-13
Official status
05/13/2025 H Placed on General State Calendar
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Relating to the creation of the Waller County Improvement District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Relating to the creation of the Waller County Improvement District No.

What This Bill Does

  • Relating to the creation of the Waller County Improvement District No.
  • 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-05-19 Texas Legislature Online

    Recommendations filed with the Speaker

  2. 2025-05-13 Texas Legislature Online

    Placed on General State Calendar

  3. 2025-05-11 Texas Legislature Online

    Considered in Calendars

  4. 2025-05-10 Texas Legislature Online

    Committee report sent to Calendars

  5. 2025-05-09 Texas Legislature Online

    Comte report filed with Committee Coordinator

  6. 2025-05-09 Texas Legislature Online

    Committee report distributed

  7. 2025-04-30 Texas Legislature Online

    Considered in formal meeting

  8. 2025-04-30 Texas Legislature Online

    Reported favorably w/o amendment(s)

  9. 2025-04-29 Texas Legislature Online

    Scheduled for public hearing on . . .

  10. 2025-04-29 Texas Legislature Online

    Considered in public hearing

  11. 2025-04-29 Texas Legislature Online

    Testimony taken/registration(s) recorded in committee

  12. 2025-04-29 Texas Legislature Online

    Left pending in committee

  13. 2025-04-24 Texas Legislature Online

    Transmitted to the Governor

  14. 2025-04-23 Texas Legislature Online

    Read first time

  15. 2025-04-23 Texas Legislature Online

    Referred to Intergovernmental Affairs

  16. 2025-04-22 Texas Legislature Online

    Filed

Official Summary Text

Relating to the creation of the Waller County Improvement District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Current Bill Text

Read the full stored bill text
89(R) HB 5685 - House Committee Report version - Bill Text

89R21475 JTZ-F

By: Kitzman

H.B. No. 5685

A BILL TO BE ENTITLED

relating to the creation of the Waller County Improvement District

No. 3; 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 C, Title 4, Special District Local Laws

Code, is amended by adding Chapter 4204 to read as follows:

CHAPTER 4204. WALLER COUNTY IMPROVEMENT DISTRICT NO.

3

SUBCHAPTER A.

GENERAL PROVISIONS

Sec. 4204.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "County" means Waller County.

(3) "Director" means a board member.

(4)

"District" means the Waller County Improvement

District No.

3.

Sec.

4204.0102.

NATURE OF DISTRICT. The Waller County

Improvement District No.

3 is a special district created under

Section 59, Article XVI, Texas Constitution.

Sec.

4204.0103.

PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes of

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution, and other public purposes stated in this

chapter.

(b)

By creating the district and in authorizing the county

and other political subdivisions to contract with the district, the

legislature has established a program to accomplish the public

purposes set out in Section 52-a, Article III, Texas Constitution.

(c)

The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

(d)

This chapter and the creation of the district may not be

interpreted to relieve the county from providing the level of

services provided as of the effective date of the Act enacting this

chapter to the area in the district. The district is created to

supplement and not to supplant county services provided in the

district.

Sec.

4204.0104.

FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) All land and other property included in the district will

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

III, and Section 59, Article XVI, Texas Constitution, and other

powers granted under this chapter.

(b)

The district is created to serve a public use and

benefit.

(c)

The creation of the district is in the public interest

and is essential to further the public purposes of:

(1)

developing and diversifying the economy of the

state;

(2) eliminating unemployment and underemployment; and

(3)

developing or expanding transportation and

commerce.

(d) The district will:

(1)

promote the health, safety, and general welfare of

residents, employers, potential employees, employees, visitors,

and consumers in the district, and of the public;

(2)

provide needed funding for the district to

preserve, maintain, and enhance the economic health and vitality of

the district territory as a community and business center;

(3)

promote the health, safety, welfare, and enjoyment

of the public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

and

(4)

provide for water, wastewater, drainage, road, and

recreational facilities for the district.

(e)

Pedestrian ways along or across a street, whether at

grade or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a street

or road improvement.

(f)

The district will not act as the agent or

instrumentality of any private interest even though the district

will benefit many private interests as well as the public.

Sec.

4204.0105.

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 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 bonds for the purposes

for which the district is created or to pay the principal of and

interest on the bonds;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

Sec.

4204.0106.

ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.

All or any part of the area of the district is eligible to be

included in:

(1)

a tax increment reinvestment zone created under

Chapter 311, Tax Code; or

(2)

a tax abatement reinvestment zone created under

Chapter 312, Tax Code.

Sec.

4204.0107.

APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec.

4204.0108.

CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.

4204.0201.

GOVERNING BODY; TERMS.

(a)

The district is

governed by a board of five voting directors elected or appointed as

provided by this chapter and Subchapter D, Chapter 49, Water Code.

(b)

Except as provided by Section 4204.0203, voting

directors serve staggered four-year terms.

Sec.

4204.0202.

COMPENSATION. (a) A director is entitled

to receive fees of office and reimbursement for actual expenses as

provided by Section 49.060, Water Code.

(b)

Sections 375.069 and 375.070, Local Government Code, do

not apply to the board.

Sec.

4204.0203.

TEMPORARY VOTING DIRECTORS. (a) On or

after the effective date of the Act enacting this chapter, the owner

or owners of a majority of the assessed value of the real property

in the district according to the most recent certified tax

appraisal roll for the county may submit a petition to the Texas

Commission on Environmental Quality requesting that the commission

appoint as temporary voting directors the five persons named in the

petition.

The commission shall appoint as temporary voting

directors the five persons named in the petition.

(b)

The temporary or successor temporary voting directors

shall hold an election to elect five permanent voting directors as

provided by Section 4204.0201.

(c) Temporary voting directors serve until the earlier of:

(1)

the date permanent voting directors are elected

under Subsection (b); or

(2)

the fourth anniversary of the effective date of

the Act enacting this chapter.

(d)

If permanent voting directors have not been elected

under Subsection (b) and the terms of the temporary voting

directors have expired, successor temporary voting directors shall

be appointed or reappointed as provided by Subsection (e) to serve

terms that expire on the earlier of:

(1)

the date permanent voting directors are elected

under Subsection (b); or

(2)

the fourth anniversary of the date of the

appointment or reappointment.

(e)

If Subsection (d) applies, the owner or owners of a

majority of the assessed value of the real property in the district

according to the most recent certified tax appraisal roll for the

county may submit a petition to the Texas Commission on

Environmental Quality requesting that the commission appoint as

successor temporary voting directors the five persons named in the

petition.

The commission shall appoint as successor temporary

voting directors the five persons named in the petition.

Sec.

4204.0204.

NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

Sec.

4204.0205.

QUORUM. For purposes of determining the

requirements for a quorum of the board, the following are not

counted:

(1)

a board position vacant for any reason, including

death, resignation, or disqualification;

(2)

a director who is abstaining from participation in

a vote because of a conflict of interest; or

(3) a nonvoting director.

SUBCHAPTER C. POWERS AND DUTIES

Sec.

4204.0301.

GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec.

4204.0302.

IMPROVEMENT PROJECTS AND SERVICES. (a) The

district, using any money available to the district for the

purpose, may provide, design, construct, acquire, improve,

relocate, operate, maintain, or finance an improvement project or

service authorized under this chapter or Chapter 375, Local

Government Code.

(b)

The district may contract with a governmental or private

entity to carry out an action under Subsection (a).

(c)

The implementation of a district project or service is a

governmental function or service for the purposes of Chapter 791,

Government Code.

Sec.

4204.0303.

LAW ENFORCEMENT SERVICES. To protect the

public interest, the district may contract with a qualified party,

including the county, to provide law enforcement services in the

district for a fee.

Sec.

4204.0304.

MEMBERSHIP IN CHARITABLE ORGANIZATIONS.

The district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Sec.

4204.0305.

ECONOMIC DEVELOPMENT PROGRAMS. (a) The

district may engage in activities that accomplish the economic

development purposes of the district.

(b)

The district may establish and provide for the

administration of one or more programs to promote state or local

economic development and to stimulate business and commercial

activity in the district, including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(c)

The district may create economic development programs

and exercise the economic development powers provided to

municipalities by:

(1) Chapter 380, Local Government Code; and

(2) Subchapter A, Chapter 1509, Government Code.

Sec.

4204.0306.

PARKING FACILITIES. (a) The district may

acquire, lease as lessor or lessee, construct, develop, own,

operate, and maintain parking facilities or a system of parking

facilities, including lots, garages, parking terminals, or other

structures or accommodations for parking motor vehicles off the

streets and related appurtenances.

(b)

The district's parking facilities serve the public

purposes of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term of

years.

(c)

The district's parking facilities are parts of and

necessary components of a street and are considered to be a street

or road improvement.

(d)

The development and operation of the district's parking

facilities may be considered an economic development program.

Sec.

4204.0307.

DISBURSEMENTS AND TRANSFERS OF MONEY. The

board by resolution shall establish the number of directors'

signatures and the procedure required for a disbursement or

transfer of district money.

Sec.

4204.0308.

ADDING OR EXCLUDING LAND. The district may

add or exclude land in the manner provided by Subchapter J, Chapter

49, Water Code, or by Subchapter H, Chapter 54, Water Code.

Sec.

4204.0309.

NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

SUBCHAPTER D. ASSESSMENTS

Sec.

4204.0401.

PETITION REQUIRED FOR FINANCING SERVICES

AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this chapter

unless a written petition requesting that service or improvement

has been filed with the board.

(b)

A petition filed under Subsection (a) must be signed by

the owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for the county.

Sec.

4204.0402.

ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)

The board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b)

An assessment, a reassessment, or an assessment

resulting from an addition to or correction of the assessment roll

by the district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1)

are a first and prior lien against the property

assessed;

(2)

are superior to any other lien or claim other than

a lien or claim for county, school district, or municipal ad valorem

taxes; and

(3)

are the personal liability of and a charge against

the owners of the property even if the owners are not named in the

assessment proceedings.

(c)

The lien is effective from the date of the board's

resolution imposing the assessment until the date the assessment is

paid. The board may enforce the lien in the same manner that the

board may enforce an ad valorem tax lien against real property.

(d)

The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment of

any parcel of land without providing notice and holding a hearing in

the manner required for additional assessments.

SUBCHAPTER E. TAXES AND BONDS

Sec.

4204.0501.

TAX ELECTION REQUIRED. (a)

The district

must hold an election in the manner provided by Chapter 49, Water

Code, or, if applicable, Chapter 375, Local Government Code, to

obtain voter approval before the district may impose an ad valorem

tax.

(b)

Section 375.243, Local Government Code, does not apply

to the district.

Sec.

4204.0502.

OPERATION AND MAINTENANCE TAX. (a) If

authorized by a majority of the district voters voting at an

election under Section 4204.0501, the district may impose an

operation and maintenance tax on taxable property in the district

in the manner provided by Section 49.107, Water Code, for any

district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b)

The board shall determine the operation and maintenance

tax rate. The rate may not exceed the rate approved at the

election.

(c)

Section 49.107(h), Water Code, does not apply to the

district.

Sec.

4204.0503.

AUTHORITY TO BORROW MONEY AND TO ISSUE

BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on

terms determined by the board.

(b)

The district may issue bonds, notes, or other

obligations payable wholly or partly from ad valorem taxes,

assessments, impact fees, revenue, contract payments, grants, or

other district money, or any combination of those sources of money,

to pay for any authorized district purpose.

(c)

The limitation on the outstanding principal amount of

bonds, notes, or other obligations provided by Section 49.4645,

Water Code, does not apply to the district.

Sec.

4204.0504.

BONDS SECURED BY REVENUE OR CONTRACT

PAYMENTS. The district may issue, without an election, bonds

secured by:

(1)

revenue other than ad valorem taxes, including

contract revenues; or

(2)

contract payments, provided that the requirements

of Section 49.108, Water Code, have been met.

Sec.

4204.0505.

BONDS SECURED BY AD VALOREM TAXES;

ELECTIONS. (a) If authorized at an election under Section

4204.0501, the district may issue bonds payable from ad valorem

taxes.

(b)

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 annual ad valorem tax, without

limit as to rate or amount, for each year that all or part of the

bonds are outstanding as required and in the manner provided by

Sections 54.601 and 54.602, Water Code.

(c)

All or any part of any facilities or improvements that

may be acquired by a district by the issuance of its bonds may be

submitted as a single proposition or as several propositions to be

voted on at the election.

Sec.

4204.0506.

CONSENT OF MUNICIPALITY REQUIRED. (a) The

board may not issue bonds 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.

(b)

This section applies only to the district's first

issuance of bonds payable from ad valorem taxes.

SUBCHAPTER F. SALES AND USE TAX

Sec.

4204.0601.

APPLICABILITY OF CERTAIN TAX CODE

PROVISIONS. (a)

Chapter 321, Tax Code, governs the imposition,

computation, administration, enforcement, and collection of the

sales and use tax authorized by this subchapter except to the extent

Chapter 321, Tax Code, is inconsistent with this chapter.

(b)

A reference in Chapter 321, Tax Code, to a municipality

or the governing body of a municipality is a reference to the

district or the board, respectively.

Sec.

4204.0602.

ELECTION; ADOPTION OF TAX. (a) The

district may adopt a sales and use tax if authorized by a majority

of the voters of the district voting at an election held for that

purpose.

(b)

The board by order may call an election to authorize the

adoption of the sales and use tax. The election may be held on any

uniform election date and in conjunction with any other district

election.

(c)

The ballot shall be printed to provide for voting for or

against the proposition: "Authorization of a sales and use tax in

the Waller County Improvement District No.

3 at a rate not to exceed

____ percent" (insert rate of one or more increments of one-eighth

of one percent).

Sec.

4204.0603.

SALES AND USE TAX RATE. (a) On or after the

date the results are declared of an election held under Section

4204.0602 at which the voters approved imposition of the tax

authorized by this subchapter, the board shall determine and adopt

by resolution or order the initial rate of the tax, which must be in

one or more increments of one-eighth of one percent.

(b)

After the authorization of a tax under Section

4204.0602, the board may increase or decrease the rate of the tax by

one or more increments of one-eighth of one percent.

(c)

The board may not decrease the rate of the tax if the

decrease would impair the repayment of any outstanding debt or

obligation payable from the tax.

(d)

The initial rate of the tax or any rate resulting from

subsequent increases or decreases may not exceed the lesser of:

(1)

the maximum rate authorized by the district voters

at the election held under Section 4204.0602; or

(2)

a rate that, when added to the rates of all sales

and use taxes imposed by other political subdivisions with

territory in the district, would result in the maximum combined

rate prescribed by Section 321.101(f), Tax Code, at any location in

the district.

(e)

In determining whether the combined sales and use tax

rate under Subsection (d)(2) would exceed the maximum combined rate

prescribed by Section 321.101(f), Tax Code, at any location in the

district, the board shall include:

(1)

any sales and use tax imposed by a political

subdivision whose territory overlaps all or part of the district;

(2)

any sales and use tax to be imposed by the county

or a municipality in which the district is located as a result of an

election held on the same date as the election held under Section

4204.0602; and

(3)

any increase to an existing sales and use tax

imposed by the county or a municipality in which the district is

located as a result of an election held on the same date as the

election held under Section 4204.0602.

(f)

If the district adopts a sales and use tax authorized at

an election under Section 4204.0602 and subsequently includes new

territory in the district, the district:

(1)

is not required to hold another election to

approve the imposition of the sales and use tax in the included

territory; and

(2)

shall impose the sales and use tax in the included

territory as provided by Chapter 321, Tax Code.

(g)

If the district adopts a sales and use tax authorized at

an election under Section 4204.0602 and subsequently excludes

territory in the district, the sales and use tax is inapplicable to

the excluded territory as provided by Chapter 321, Tax Code, but is

applicable to the territory remaining in the district.

Sec.

4204.0604.

TAX AFTER MUNICIPAL ANNEXATION. (a)

This

section applies to the district after a municipality annexes part

of the territory in the district and imposes the municipality's

sales and use tax in the annexed territory.

(b)

If at the time of annexation the district has

outstanding debt or other obligations payable wholly or partly from

district sales and use tax revenue, Section 321.102(g), Tax Code,

applies to the district.

(c)

If at the time of annexation the district does not have

outstanding debt or other obligations payable wholly or partly from

district sales and use tax revenue, the district may:

(1)

exclude the annexed territory from the district,

if the district has no outstanding debt or other obligations

payable from any source; or

(2)

reduce the sales and use tax in the annexed

territory by resolution or order of the board to a rate that, when

added to the sales and use tax rate imposed by the municipality in

the annexed territory, is equal to the sales and use tax rate

imposed by the district in the district territory that was not

annexed by the municipality.

Sec.

4204.0605.

NOTIFICATION OF RATE CHANGE.

The board

shall notify the comptroller of any changes made to the tax rate

under this subchapter in the same manner the municipal secretary

provides notice to the comptroller under Section 321.405(b), Tax

Code.

Sec.

4204.0606.

USE OF REVENUE. Revenue from the sales and

use tax imposed under this subchapter is for the use and benefit of

the district and may be used for any district purpose. The district

may pledge all or part of the revenue to the payment of bonds,

notes, or other obligations, and that pledge of revenue may be in

combination with other revenue, including tax revenue, available to

the district.

Sec.

4204.0607.

ABOLITION OF TAX. (a)

Except as provided

by Subsection (b), the board may abolish the tax imposed under this

subchapter without an election.

(b)

The board may not abolish the tax imposed under this

subchapter if the district has any outstanding debt or obligation

secured by the tax, and repayment of the debt or obligation would be

impaired by the abolition of the tax.

(c)

If the board abolishes the tax, the board shall notify

the comptroller of that action in the same manner the municipal

secretary provides notice to the comptroller under Section

321.405(b), Tax Code.

(d)

If the board abolishes the tax or decreases the tax rate

to zero, a new election to authorize a sales and use tax must be held

under Section 4204.0602 before the district may subsequently impose

the tax.

SUBCHAPTER G. HOTEL OCCUPANCY TAX

Sec.

4204.0701.

DEFINITION. In this subchapter, "hotel"

has the meaning assigned by Section 156.001, Tax Code.

Sec.

4204.0702.

APPLICABILITY OF CERTAIN TAX CODE

PROVISIONS.

(a)

For purposes of this subchapter:

(1)

a reference in Subchapter A, Chapter 352, Tax

Code, to a county is a reference to the district; and

(2)

a reference in Subchapter A, Chapter 352, Tax

Code, to the commissioners court is a reference to the board.

(b)

Except as inconsistent with this subchapter, Subchapter

A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized

by this subchapter, including the collection of the tax, subject to

the limitations prescribed by Sections 352.002(b) and (c), Tax

Code.

Sec.

4204.0703.

TAX AUTHORIZED; USE OF REVENUE.

The

district may impose a hotel occupancy tax for any purpose described

by Section 351.101 or 352.101, Tax Code.

Sec.

4204.0704.

TAX RATE.

(a)

The amount of the hotel

occupancy tax may not exceed the lesser of:

(1)

the maximum rate prescribed by Section 352.003(a),

Tax Code; or

(2)

a rate that, when added to the rates of all hotel

occupancy taxes imposed by other political subdivisions with

territory in the district and by this state, does not exceed the sum

of the rate prescribed by Section 351.0025(b), Tax Code, plus two

percent.

(b)

The district tax is in addition to a tax imposed by a

municipality under Chapter 351, Tax Code, or by the county under

Chapter 352, Tax Code.

Sec.

4204.0705.

INFORMATION.

The district may examine and

receive information related to the imposition of hotel occupancy

taxes to the same extent as if the district were a county.

Sec.

4204.0706.

USE OF REVENUE.

The district may use

revenue from the hotel occupancy tax for any district purpose that

is an authorized use of hotel occupancy tax revenue under Chapter

351 or 352, Tax Code.

The district may pledge all or part of the

revenue to the payment of bonds, notes, or other obligations and

that pledge of revenue may be in combination with other revenue

available to the district.

Sec.

4204.0707.

ABOLITION OF TAX. (a)

Except as provided

by Subsection (b), the board may abolish the tax imposed under this

subchapter.

(b)

The board may not abolish the tax imposed under this

subchapter if the district has outstanding debt secured by the tax,

and repayment of the debt would be impaired by the abolition of the

tax.

SUBCHAPTER I. DISSOLUTION

Sec.

4204.0901.

DISSOLUTION. (a) The board shall dissolve

the district on written petition filed with the board by the owners

of at least two-thirds of the assessed value of the property subject

to assessment or taxation by the district based on the most recent

certified county property tax rolls.

(b)

The board by majority vote may dissolve the district at

any time.

(c)

The district may not be dissolved by its board under

Subsection (a) or (b) if the district:

(1)

has any outstanding bonded indebtedness until that

bonded indebtedness has been repaid or defeased in accordance with

the order or resolution authorizing the issuance of the bonds;

(2)

has a contractual obligation to pay money until

that obligation has been fully paid in accordance with the

contract; or

(3)

owns, operates, or maintains public works,

facilities, or improvements unless the district contracts with

another person for the ownership, operation, or maintenance of the

public works, facilities, or improvements.

(d)

Sections 375.261, 375.262, and 375.264, Local

Government Code, do not apply to the district.

SECTION 2. The Waller County Improvement District No. 3

initially includes all territory contained in the following area:

Tract 1:

A TRACT OR PARCEL CONTAINING 104.2 ACRES OR 4,539,252 SQUARE

FEET OF LAND SITUATED IN THE JARED E. GROCE SURVEY, ABSTRACT NUMBER

(NO.) 30, WALLER COUNTY, TEXAS, BEING THE SAME CALLED 104.2 ACRE

TRACT DESCRIBED IN WARRANTY DEED WITH VENDOR'S LIEN TO HTCN

INVESTMENTS LLC, AS RECORDED IN DOCUMENT (DOC.) NO. 2308078, OF THE

WALLER COUNTY DEED RECORDS (W.C.D.R.), WITH SAID 104.2 ACRE TRACT

BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS,

WITH ALL BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF 1983,

SOUTH CENTRAL ZONE (4204):

COMMENCING AT A 1/2 INCH IRON ROD FOUND AT THE INTERSECTION OF

THE SOUTH RIGHT-OF-WAY (R.O.W.) LINE OF F.M. 3346 (100 FEET WIDE) AS

RECORDED IN VOLUME (VOL.) 262, PAGE (PG.) 748, W.C.D.R., AND THE

WESTERLY R.O.W. LINE OF F.M. 1887 (WIDTH VARIES) AS RECORDED IN VOL.

130, PG. 32, W.C.D.R., AND IN VOL. 130, PG. 34, W.C.D.R., MARKING

THE NORTHEAST CORNER OF A CALLED 122.978 ACRE TRACT DESCRIBED IN

WARRANTY DEED WITH VENDOR'S LIEN TO KENNETH W. MIKEL AND SUZANNE B.

MIKEL, AS RECORDED IN VOL. 495, PG. 592, W.C.D.R.;

THENCE, SOUTH 13 DEG. 24 MIN. 12 SEC. WEST, WITH THE WEST

R.O.W. LINE OF SAID F.M. 1887, A DISTANCE OF 2,435.60 FEET TO A 1/2

INCH IRON ROD FOUND IN CONCRETE MARKING THE COMMON EAST CORNER OF

SAID 122.978 ACRE TRACT, AND OF SAID 104.2 ACRE TRACT, SAME BEING

THE PLACE OF BEGINNING AND THE NORTHEAST CORNER OF THE HEREIN

DESCRIBED TRACT, FROM WHICH A CONCRETE MONUMENT FOUND BEARS FOR

REFERENCE NORTH 86 DEG. 46 MIN. 01 SEC. EAST - 82.85 FEET;

THENCE, SOUTH 13 DEG. 24 MIN. 12 SEC. WEST, CONTINUING WITH

THE WEST R.O.W. LINE OF SAID F.M. 1887, A DISTANCE OF 1,039.26 FEET

(CALLED 1,036.78 FEET) TO A 5/8 INCH CAPPED IRON ROD STAMPED

"WINDROSE" SET MARKING THE BEGINNING OF A NON-TANGENT CURVE TO THE

LEFT;

THENCE, CONTINUING WITH THE WESTERLY R.O.W. LINE OF SAID F.M.

1887, AND WITH SAID CURVE TO THE LEFT, HAVING A RADIUS OF 1,949.81

FEET, A CENTRAL ANGLE OF 22 DEG. 16 MIN. 39 SEC., AN ARC LENGTH OF

758.12 FEET (CALLED 760.61 FEET), AND A CHORD BEARING AND DISTANCE

OF SOUTH 02 DEG. 13 MIN. 41 SEC. WEST - 753.35 FEET TO A 1/2 INCH

CAPPED IRON ROD STAMPED "RPLS 6132" FOUND MARKING THE COMMON EAST

CORNER OF SAID 104.21 ACRE TRACT, AND OF A CALLED 1,377.777 ACRE

TRACT DESCRIBED IN SPECIAL WARRANTY DEED TO MOSING BROTHERS, LLC,

AS RECORDED IN VOL. 1421, PG. 441, W.C.D.R., SAME BEING THE

SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE, SOUTH 87 DEG. 41 MIN. 39 SEC. WEST, WITH A NORTH LINE

OF SAID 1,377.777 ACRE TRACT, COMMON WITH THE SOUTH LINE OF SAID

104.21 ACRE TRACT, A DISTANCE OF 2,480.84 FEET (CALLED 2,480.69

FEET) TO A 1/2 INCH IRON ROD FOUND MARKING THE COMMON SOUTH CORNER

OF SAID 104.2 ACRE TRACT, AND OF A CALLED 73.50 ACRE TRACT (TRACT

II) DESCRIBED IN WARRANTY DEED TO HTR RANCH LLC, AS RECORDED IN DOC.

NO. 2210532, W.C.D.R., SAME BEING THE SOUTHWEST CORNER OF THE

HEREIN DESCRIBED TRACT;

THENCE, NORTH 02 DEG. 17 MIN. 22 SEC. WEST, WITH THE EAST LINE

OF SAID 73.50 ACRE TRACT, COMMON WITH THE WEST LINE OF SAID 104.2

ACRE TRACT, A DISTANCE OF 1,747.77 FEET TO A 5/8 INCH CAPPED IRON

ROD STAMPED "WINDROSE" SET ON THE SOUTH LINE OF A CALLED 23.747 ACRE

DESCRIBED IN WARRANTY DEED WITH VENDOR'S LIEN TO JOHN FISHER

MCCAULEY, JR., AS RECORDED IN DOC. NO. 2012647, W.C.D.R., MARKING

THE COMMON NORTH CORNER OF SAID 104.2 ACRE TRACT, AND OF SAID 73.50

ACRE TRACT, SAME BEING THE NORTHWEST CORNER OF THE HEREIN DESCRIBED

TRACT;

THENCE, NORTH 87 DEG. 58 MIN. 31 SEC. EAST, WITH THE SOUTH

LINE OF SAID 23.747 ACRE TRACT, COMMON WITH THE NORTH LINE OF 104.2

ACRE TRACT, A DISTANCE OF 193.46 FEET (CALLED 193.28 FEET) TO A 5/8

INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING THE COMMON

SOUTH CORNER OF SAID 23.747 ACRE TRACT, AND OF A CALLED 36.121 ACRE

TRACT DESCRIBED IN GENERAL WARRANTY DEED TO VALERIAN JOHN JOZWIAK,

AS RECORDED IN VOL. 471, PG. 359, W.C.D.R., SAME BEING AN ANGLE

POINT OF THE HEREIN DESCRIBED TRACT;

THENCE, NORTH 87 DEG. 41 MIN. 35 SEC. EAST, WITH THE SOUTH

LINE OF SAID 36.121 ACRE TRACT, COMMON WITH THE NORTH LINE OF SAID

104.2 ACRE TRACT, A DISTANCE OF 671.84 FEET (CALLED 672.26 FEET) TO

A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING THE COMMON

SOUTH CORNER OF SAID 36.121 ACRE TRACT, AND OF SAID 122.978 ACRE

TRACT, W.C.D.R., SAME BEING AN ANGLE POINT OF THE HEREIN DESCRIBED

TRACT;

THENCE, NORTH 87 DEG. 37 MIN. 01 SEC. EAST, WITH THE SOUTH

LINE OF SAID 122.978 ACRE TRACT, COMMON WITH THE NORTH LINE OF SAID

104.2 ACRE TRACT, A DISTANCE OF 1,173.51 FEET (CALLED 1,173.27

FEET) TO A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING

AN ANGLE POINT OF THE HEREIN DESCRIBED TRACT;

THENCE, NORTH 87 DEG. 28 MIN. 24 SEC. EAST, CONTINUING WITH

THE SOUTH LINE OF SAID 122.978 ACRE TRACT, COMMON WITH THE NORTH

LINE OF SAID 104.2 ACRE TRACT, A DISTANCE OF 782.47 FEET (CALLED

782.78 FEET) TO THE PLACE OF BEGINNING AND CONTAINING 104.2 ACRES OR

4,539,252 SQUARE FEET OF LAND, AS SHOWN ON JOB NO. 60200, PREPARED

BY WINDROSE LAND SERVICES.

Tract 2:

A TRACT OR PARCEL CONTAINING 84.99 ACRES OR 3,702,229 SQUARE

FEET OF LAND SITUATED IN THE WILLIAM WHITESIDE SURVEY, ABSTRACT

NUMBER (NO.) 61, WALLER COUNTY, TEXAS, BEING THE SAME CALLED

122.978 ACRE TRACT DESCRIBED IN WARRANTY DEED WITH VENDOR'S LIEN TO

KENNETH W. MIKEL AND SUZANNE B. MIKEL, AS RECORDED IN VOLUME (VOL.)

495, PAGE (PG.) 592, OF THE WALLER COUNTY DEED RECORDS (W.C.D.R.),

SAVE AND EXCEPT A CALLED 38.000 ACRE TRACT DESCRIBED IN GENERAL

WARRANTY DEED TO EAST POINT INSTALLERS, INC., AS RECORDED IN VOL.

1304, PG. 543, W.C.D.R., WITH SAID 84.99 ACRE TRACT BEING MORE

PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS, WITH ALL

BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF 1983, SOUTH

CENTRAL ZONE (4204):

BEGINNING AT A 1/2 INCH IRON ROD FOUND AT THE INTERSECTION OF

THE SOUTH RIGHT-OF-WAY (R.O.W.) LINE OF F.M. 3346 (100 FEET WIDE) AS

RECORDED IN VOL. 262, PG. 748, W.C.D.R., AND THE WESTERLY R.O.W.

LINE OF F.M. 1887 (WIDTH VARIES) AS RECORDED IN VOL. 130, PG. 32,

W.C.D.R., AND IN VOL. 130, PG. 34, W.C.D.R., MARKING THE NORTHEAST

CORNER OF SAID 122.978 ACRE TRACT AND OF THE HEREIN DESCRIBED TRACT;

THENCE, SOUTH 13 DEG. 24 MIN. 12 SEC. WEST, WITH THE WEST

R.O.W. LINE OF SAID F.M. 1887, A DISTANCE OF 2,435.60 FEET (CALLED

2,434.88 FEET) TO A 1/2 INCH IRON ROD IN CONCRETE FOUND MARKING THE

SOUTHEAST CORNER OF SAID 122.978 ACRE TRACT AND OF THE HEREIN

DESCRIBED TRACT, SAME BEING THE NORTHEAST CORNER OF A CALLED 104.2

ACRE TRACT DESCRIBED IN WARRANTY DEED WITH VENDOR'S LIEN TO HTCN

INVESTMENTS LLC, AS RECORDED IN DOCUMENT (DOC.) NO. 2308078,

W.C.D.R., FROM WHICH A CONCRETE MONUMENT FOUND BEARS FOR REFERENCE

NORTH 86 DEG. 46 MIN. 01 SEC. EAST - 82.85 FEET;

THENCE, SOUTH 87 DEG. 28 MIN. 24 SEC. WEST, WITH THE SOUTH

LINE OF SAID 122.978 ACRE TRACT, COMMON WITH THE NORTH LINE OF SAID

104.2 ACRE TRACT, A DISTANCE OF 782.40 FEET (CALLED 783.40 FEET) TO

A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING AN ANGLE

POINT;

THENCE, SOUTH 87 DEG. 37 MIN. 01 SEC. WEST, WITH THE SOUTH

LINE OF SAID 122.978 ACRE TRACT, COMMON WITH THE NORTH LINE OF SAID

104.2 ACRE TRACT, A DISTANCE OF 1,173.51 FEET (CALLED 1,173.62

FEET) TO A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING

THE COMMON SOUTH CORNER OF SAID 122.978 ACRE TRACT, AND OF A CALLED

36.121 ACRE TRACT DESCRIBED IN GENERAL WARRANTY DEED TO VALERIAN

JOHN JOZWIAK, AS RECORDED IN VOL. 471, PG. 359, W.C.D.R., COMMON

WITH AN ANGLE POINT IN THE NORTH LINE OF SAID 104.2 ACRE TRACT, SAME

BEING THE SOUTHWEST CORNER OF THE HEREIN DESCRIBED TRACT;

THENCE, NORTH 02 DEG. 18 MIN. 21 SEC. WEST, ALONG THE COMMON

LINE OF SAID 36.121 ACRE TRACT AND THE REMAINDER OF SAID 122.978

ACRE TRACT, A DISTANCE OF 1,034.68 FEET TO A 5/8 INCH CAPPED IRON

ROD STAMPED "WINDROSE" SET MARKING THE SOUTHWEST CORNER OF SAID

38.00 ACRE TRACT SAME BEING THE MOST WESTERLY NORTHWEST CORNER OF

THE HEREIN DESCRIBED TRACT;

THENCE, OVER AND ACROSS SAID 122.978 ACRE TRACT, AND WITH THE

SOUTH AND EAST LINES OF SAID 38.00 ACRE TRACT, THE FOLLOWING THREE

(3) COURSES AND DISTANCES:

1. NORTH 87 DEG. 34 MIN. 04 SEC. EAST, A DISTANCE OF 1,260.14 FEET

TO A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING THE

SOUTHEAST CORNER OF SAID 38.00 ACRE TRACT, SAME BEING AN INTERIOR

CORNER OF THE HEREIN DESCRIBED TRACT;

2. NORTH 02 DEG. 29 MIN. 28 SEC. WEST, A DISTANCE OF 468.82 FEET TO

A 5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING AN ANGLE

POINT OF SAID 38.00 ACRE TRACT AND OF THE HEREIN DESCRIBED TRACT;

3. NORTH 01 DEG. 06 MIN. 33 SEC. WEST, A DISTANCE OF 840.18 FEET TO

A 3/4 INCH CAPPED IRON ROD STAMPED "MCCAY" FOUND ON THE SOUTH R.O.W.

LINE OF SAID F.M. 3346, MARKING THE COMMON NORTH CORNER OF SAID

38.00 ACRE TRACT AND OF THE HEREIN DESCRIBED TRACT;

THENCE, NORTH 87 DEG. 34 MIN. 04 SEC. EAST, WITH THE SOUTH

R.O.W. LINE OF SAID F.M. 3346, A DISTANCE OF 1,339.25 FEET TO THE

PLACE OF BEGINNING AND CONTAINING 84.99 ACRES OR 3,702,229 SQUARE

FEET OF LAND, AS SHOWN ON JOB NO. 60200, PREPARED BY WINDROSE LAND

SERVICES.

Tract 3:

A TRACT OR PARCEL CONTAINING 37.99 ACRES OR 1,654,982 SQUARE

FEET OF LAND SITUATED IN THE WILLIAM WHITESIDE SURVEY, ABSTRACT

NUMBER (NO.) 61, WALLER COUNTY, TEXAS, BEING THE SAME CALLED 38.000

ACRE TRACT DESCRIBED IN GENERAL WARRANTY DEED TO EAST POINT

INSTALLERS, INC., AS RECORDED IN VOLUME (VOL.) 1304, PAGE (PG.)

543, OF THE WALLER COUNTY DEED RECORDS (W.C.D.R.), WITH SAID 37.99

ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS

FOLLOWS, WITH ALL BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM OF

1983, SOUTH CENTRAL ZONE (4204):

COMMENCING AT A 1/2 INCH IRON ROD FOUND AT THE INTERSECTION OF

THE SOUTH RIGHT-OF-WAY (R.O.W.) LINE OF F.M. 3346 (100 FEET WIDE) AS

RECORDED IN VOL. 262, PAGE PG. 748, W.C.D.R., AND THE WESTERLY

R.O.W. LINE OF F.M. 1887 (WIDTH VARIES) AS RECORDED IN VOL. 130, PG.

32, W.C.D.R., AND IN VOL. 130, PG. 34, W.C.D.R., MARKING THE

NORTHEAST CORNER OF A CALLED 122.978 ACRE TRACT DESCRIBED IN

WARRANTY DEED WITH VENDOR'S LIEN TO KENNETH W. MIKEL AND SUZANNE B.

MIKEL, AS RECORDED IN VOL. 495, PG. 592, W.C.D.R.;

THENCE, SOUTH 87 DEG. 34 MIN. 04 SEC. WEST, WITH THE SOUTH

R.O.W. LINE OF SAID F.M. 3346, A DISTANCE OF 1,339.25 FEET TO A 3/4

INCH IRON ROD STAMPED "MCCAY" FOUND MARKING THE NORTHEAST CORNER OF

SAID 38.000 ACRE TRACT, SAME BEING THE PLACE OF BEGINNING OF THE

HEREIN DESCRIBED TRACT;

THENCE, SOUTH 01 DEG. 06 MIN. 33 SEC. EAST, WITH AN EAST LINE

OF SAID 38.000 ACRE TRACT, A DISTANCE OF 840.18 FEET TO A 5/8 INCH

CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING AN ANGLE POINT OF

SAID 38.000 ACRE TRACT AND OF THE HEREIN DESCRIBED TRACT;

THENCE, SOUTH 02 DEG. 29 MIN. 28 SEC. EAST, CONTINUING WITH AN

EAST LINE OF SAID 38.000 ACRE TRACT, A DISTANCE OF 468.82 FEET TO A

5/8 INCH CAPPED IRON ROD STAMPED "WINDROSE" SET MARKING THE

SOUTHEAST CORNER OF SAID 38.000 ACRE TRACT AND OF THE HEREIN

DESCRIBED TRACT;

THENCE, SOUTH 87 DEG. 34 MIN. 04 SEC. WEST, WITH THE SOUTH

LINE OF SAID 38.000 ACRE TRACT, A DISTANCE OF 1,260.14 FEET TO A 5/8

INCH CAPPED IRON ROD STAMPED "WINDROSE" SET ON THE EAST LINE OF A

36.121 ACRE TRACT DESCRIBED IN GENERAL WARRANTY DEED TO VALERIAN

JOHN JOZWIAK, AS RECORDED IN VOL. 471, PG. 359, W.C.D.R., MARKING

THE SOUTHWEST CORNER OF SAID 38.00 ACRE TRACT AND OF THE HEREIN

DESCRIBED TRACT;

THENCE, NORTH 02 DEG. 18 MIN. 21 SEC. WEST, WITH THE EAST LINE

OF SAID 36.121 ACRE TRACT, COMMON WITH THE WEST LINE OF SAID 38.000

ACRE TRACT, A DISTANCE OF 1,308.78 FEET TO A 3/4 INCH IRON PIPE

FOUND ON THE SOUTH R.O.W. LINE OF SAID F.M. 3346, MARKING THE COMMON

NORTH CORNER OF SAID 36.121 ACRE TRACT, AND OF SAID 38.000 ACRE

TRACT, SAME BEING THE NORTHWEST CORNER OF THE HEREIN DESCRIBED

TRACT, FROM WHICH A 1 INCH IRON PIPE FOUND MARKING THE NORTHWEST

CORNER OF SAID 36.121 ACRE TRACT BEARS SOUTH 87 DEG. 34 MIN. 04 SEC.

WEST - 671.93 FEET;

THENCE, NORTH 87 DEG. 34 MIN. 04 SEC. EAST, WITH THE SOUTH

R.O.W. LINE OF SAID F.M. 3346, A DISTANCE OF 1,276.17 FEET TO THE

PLACE OF BEGINNING AND CONTAINING 37.99 ACRES OR 1,654,982 SQUARE

FEET OF LAND, AS SHOWN ON JOB NO. 60200, PREPARED BY WINDROSE LAND

SERVICES.

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,

lieutenant governor, and 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 have been

fulfilled and accomplished.

SECTION 4. 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.