Read the full stored bill text
89(R) HB 5699 - Enrolled version - Bill Text
H.B. No. 5699
AN ACT
relating to the authority of the Harris County Municipal Utility
District No. 405 to exclude territory; validating and confirming
all previous acts of the district.
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 8024A to read as follows:
CHAPTER 8024A. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 405
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8024A.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2)
"District" means the Harris County Municipal
Utility District No.
405.
SUBCHAPTER B. POWERS AND DUTIES
Sec.
8024A.0201.
EXCLUSION OF PROPERTY BY CONTRACT. (a)
Notwithstanding any other law, the district may enter into a
written contract with an owner of undeveloped property in the
district to exclude the property from the district on terms and
conditions the board considers advantageous for the district.
(b)
The district may issue an order excluding the property
from the district only if the terms and conditions of the contract
are satisfied. The district shall record a copy of the order in the
real property records of Harris County.
(c)
Except as provided by the contract described by
Subsection (a) and Section 8024A.0202, on issuance of the order,
the excluded property is no longer part of the district and is not
entitled to any services from the district.
Sec.
8024A.0202.
EFFECT OF EXCLUSION ON INDEBTEDNESS AND
TAXES. (a) Until a property's pro rata share of the district's
indebtedness is paid in full after the property is excluded from the
district under Section 8024A.0201:
(1)
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;
(2)
the district shall continue to levy and collect
debt service taxes each year on the excluded property at the same
rate levied on other property in the district; and
(3)
the taxes collected under Subdivision (2) remain
pledged as security for the district's indebtedness and shall be
applied exclusively to the payment of the excluded property's pro
rata share of the district's indebtedness.
(b)
The contract for exclusion must state the amount of or a
method of determining 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)
On payment in full of the excluded property's pro rata
share of the district's indebtedness, the excluded property is
released from payment of the district's debt service taxes.
Sec.
8024A.0203.
RIGHTS OF BONDHOLDERS. The exclusion of
property from the district under Section 8024A.0201 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.
Sec.
8024A.0204.
RELIANCE ON PRIOR ELECTION.
Notwithstanding any other law, the district may issue any unissued
additional bonds, notes, or other obligations approved by voters of
the district before the exclusion of property from the district
under Section 8024A.0201 without holding a new election to
authorize the issuance of the bonds, notes, or other obligations.
SECTION 2. The 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 3. (a) The legislature validates and confirms all
governmental acts and proceedings of the district 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 4. (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 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, 2025.
______________________________
______________________________
President of the Senate
Speaker of the House
I certify that H.B. No. 5699 was passed by the House on May
16, 2025, by the following vote: Yeas 91, Nays 40, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 5699 was passed by the Senate on May
27, 2025, by the following vote: Yeas 28, Nays 3.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor