By: Kolkhorst	S.B. No. 2257
	(In the Senate - Filed March 28, 2017; April 3, 2017, read
	first time and referred to Committee on Intergovernmental
	Relations; April 26, 2017, reported favorably by the following
	vote:  Yeas 6, Nays 0; April 26, 2017, sent to printer.)
Click here to see the committee vote

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Harris County Municipal Utility
	District No. 554; 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 7998 to read as follows:
	CHAPTER 7998.  HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 554
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 7998.001.  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. 554.
	Sec. 7998.002.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 7998.003.  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. 7998.004.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section 7998.003
	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. 7998.005.  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, improvement, operation,
	or maintenance of macadamized, graveled, or paved roads, or
	improvements, including storm drainage, in aid of those roads.
	Sec. 7998.006.  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. 7998.051.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five elected directors.
	(b)  Except as provided by Section 7998.052, directors serve
	staggered four-year terms.
	Sec. 7998.052.  TEMPORARY DIRECTORS.  (a)  The temporary
	board consists of:
	(1)  Matthew O'Neill;
	(2)  Tayo Ilori;
	(3)  Kayvon Tabrizi;
	(4)  Joan L. Gill; and
	(5)  Justin Klump.
	(b)  Temporary directors serve until the earlier of:
	(1)  the date permanent directors are elected under
	Section 7998.003; 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 7998.003 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 7998.003; 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. 7998.101.  GENERAL POWERS AND DUTIES.  The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 7998.102.  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. 7998.103.  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. 7998.104.  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. 7998.105.  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.
	SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
	Sec. 7998.151.  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 7998.153.
	(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. 7998.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 7998.151, 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. 7998.153.  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. 7998.201.  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. 7998.202.  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. 7998.203.  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. 554 initially includes all the territory contained in the
	following area:
	Being 95.955 acres of land located in the Harris County
	School Land Survey, Abstract 332, Harris County, Texas, more
	particularly being all of that certain called 51.210 acre tract
	described in the deed from Lenert Investments, LLC to AHTX 3LLC, ET
	AL., by an instrument of record in File No. RP-2016-67420, Official
	Public Records of Real Property of said Harris County, Texas, same
	being a portion of that certain called 44.745 acre tract described
	in the deed from Cunningham Interests H, LTD. to Marlon R. Davis, by
	an instrument of record File No. 20150025169, Official Public
	Records of Harris County, Texas, said 95.955 acres being more
	particularly described in two (2) parts by metes and bounds as
	follows:
	TRACT ONE
	BEING a 51.210 acre tract of land situated in the Harris
	County School Land Survey A-332, being part of Lot 11 and Lot 12,
	Section 9, Harris County, Texas, all of a call 38.516 acre tract of
	land described by deed dated August 21, 2014. to Colt David Haack
	and wife, Annette D. Haack, recorded under Film Code
	No. 060-65-2281 of the Official Public Records of Real Property of
	Harris County, Texas and all of a call 12.694 acre tract of land
	described by deed dated September 11, 2014, to Colt David Haack and
	wife, Annette D. Haack, recorded under Film Code No. 061-08-1088 of
	the Official Public Records of Real Property of Harris County,
	Texas said 38.516 acres and 12.694 acres being part of a call 70.801
	acre tract of land described by deed dated November 3, 1999, to A.
	J. Foyt, Jr., recorded under Clerk's File No. U071611, Official
	Public Records of Real Property of Harris County, Texas, said
	51.210 acres being more particularly described by metes and bounds
	as follows:
	BEGINNING at a 3/4 inch iron pipe found for the northeast
	corner of a call 30.213 acre tract of land described by deed dated
	May 6, 1998, now or formerly, Benjamin F. Pacleb and wife, Janice T.
	Pacleb, recorded under Clerk's File No. T055052, Official Public
	Records of Real Property Harris County, Texas, the southeast corner
	of the original call 70.801 acre tract of land same being the
	southeast corner of the call 38.516 acre tract of land for the POINT
	OF BEGINNING and southeast corner of the herein described tract;
	THENCE North 89 degrees 29 minutes 55 seconds West, along the
	north line of the call 30.213 acre tract of land, the north line of
	an original call 76.16 acre tract of land described by deed dated
	March 10, 1994, now or formerly, Randall L. Weaver and Dana M.
	Weaver, recorded under Clerk's File No. P763344, Official Public
	Records of Real Property Harris County, Texas, the north line of a
	call 20.00 acre tract of land described by deed dated May 20, 1996,
	now or formerly, Xavier A. Cantu et al., recorded under Clerk's File
	No. R939784, Official Public Records of Real Property Harris
	County, Texas, the north line of a call 7.00 acre tract of land
	described by deed dated May 9, 1996, now or formerly, Jimmy Cantu.
	And Ruth Cantu, recorded under Clerk's File No. R924594, Official
	Public Records of Real Property Harris County, Texas, the north
	line of a call 15.39 acre tract of land, more or less, described by
	deed dated September 16, 1994, now or formerly, Xavier A. Cantu and
	Ruby Cantu, recorded under Clerk's File No. R074840, Official
	Public Records of Real Property Harris County, Texas, a portion of
	the north line of a call 12.8855 acre tract of land designated as
	Tract 1 by deed dated May 21, 1983, now or formerly, O. D. Hakemack,
	recorded under Clerk's File No. H995356, Official Public Records of
	Real Property Harris County, Texas, a distance of 2289.79 feet to
	the lower southwest corner of the call 38.516 acre tract of land for
	the lower southwest corner of the herein described tract, from
	which a 1 /2 inch rod found with a plastic identification cap bears
	South 0.15 feet;
	THENCE North 00 degrees 16 minutes 03 seconds East, a
	distance of 315.37 feet to a 1/2 inch iron rod found with a plastic
	identification cap stamped C & C Surveying for an apparent
	northeast corner of a tract of land described by deed dated December
	20, 1942, now or formerly, Oscar A. Huenefeld, recorded in Volume
	1269, Page 349, Deed Records Harris County, Texas, for an interior
	corner of the herein described tract;
	THENCE North 89 degrees 25 minutes 37 seconds West, a
	distance of 558.60 feet to a 1/2 inch iron rod found with a plastic
	identification cap in the east line of Stokes Road, the upper
	southwest corner of the call 70.801 acre tract of land for the upper
	southwest corner of the herein described tract;
	THENCE North 00 degrees 13 minutes 28 seconds East, along the
	east line of Stokes Road, at 335.11 feet pass a 1/2 inch iron rod
	found with a plastic identification cap for the northwest corner of
	the call 38.516 acre tract of land, the southwest corner of the call
	12.694 acre tract of land, continuing a total distance of 564.66
	feet to a 1/2 inch iron rod found with a plastic identification cap
	for the northwest corner of the call 12.694 acre tract of land for
	the northwest corner of the herein described tract;
	THENCE South 88 degrees 24 minutes 04 seconds East, leaving
	the east line of Stokes Road, a distance of 528.09 feet to a 1/2 inch
	iron rod found with a plastic identification cap at a fence corner
	post for an angle point of the call 12.694 acre tract of land for an
	angle point of the herein described tract;
	THENCE North 87 degrees 52 minutes 42 seconds East, generally
	along a fence line, a distance of 1684.07 feet to a 1/2 inch iron rod
	found with a plastic identification cap at a fence corner post for
	the northeast corner of the call 12.694 acre tract of land for the
	upper northeast corner of the herein described tract;
	THENCE South 00 degrees 16 minutes 22 seconds East, generally
	along a fence line, a distance of 296.53 feet to a 1/2 inch iron rod
	found with a plastic identification cap at a fence corner post in
	the north line of the call 38.516 acre tract of land for the
	southeast corner of the call 12.694 acre tract of land for an
	interior corner of the herein described tract;
	THENCE South 89 degrees 29 minutes 55 seconds East, generally
	along a fence line, along a portion of the north line of the call
	38.516 acre tract of land, at 628.76 feet pass a fence corner post,
	continuing a total distance of 633.26 feet to a 1/2 inch iron rod
	found with a plastic identification cap in a north-south fence line
	for the northeast corner of the call 38.516 acre tract of land for
	the lower northeast corner of the herein described tract;
	THENCE South 00 degrees 04 minutes 35 seconds West (bearing
	basis), along a portion of the east line of the call 38.516 acre
	tract of land, a distance of 651.19 feet to the POINT OF BEGINNING,
	containing within these metes and bounds a 51.210 acre tract of
	land, more or less, as surveyed by Robert McCay, Registered
	Professional Land Surveyor No. 4509, September 26, 2014.
	TRACT TWO
	All that certain tract or parcel containing 44.7455 acres of
	land out of that certain 81.0465 acre tract of land situated in the
	Harris County School Land Survey, A-332 in Harris County, Texas,
	said 31.0465 acre tract being that same tract of land as described
	in a deed filed for record under Harris County Clerk's File
	No. 20130626732, said 44.7455 acre tract- of land being more
	particularly described by metes and bounds as follows:
	COMMENCING at a 5/8" iron rod with Tony P. Swonke RPLS 4767
	cap (found) in the West right-of-way line of Binford Road, (60.00
	feet in width), marking the Southeast corner of that certain call
	29.971 acre tract of land as described in a deed filed for record
	under Harris County Clerk's File No. 20100221984 and the Northeast
	corner of that certain call 139.81 acre tract of land as described
	in a deed filed for record under Harris County Clerk's file
	No. 20130178495;
	THENCE S 00°47'37" E, a distance of 1,623.78 feet along the
	west right-of-way line of said Binford Road and the East line of
	said 139.81 acre tract of land to a 5/8" iron rod with Tony P. Swonke
	RPLS 4767 cap (found) marking the Southeast corner of said 139.81
	acre tract of land, the Northeast corner of said 81.0465 acre tract
	of land and the Northeast corner and POINT OF BEGINNING of the
	herein described 44.7455 acre tract of land;
	THENCE S 02°48'43" E, a distance of 1,188.19 feet along the
	West right-of-way line of said Binford Road and the East line of
	said 81.0465 acre tract of land to a 5/8" iron rod with EIC cap
	(found) marking the northeast corner of a 43.9932 acre remainder of
	that certain call 522.223 acre tract of land as described in a deed
	filed for record under Harris County Clerk's File No. 20080314221,
	and the Easterly-Southeast corner of said 81.0465 acre tract of
	land and the Southeast corner of the herein described 44.7455 acre
	tract of land;
	THENCE S 86°55'14" W, a distance of 939.31 feet along the
	common line of said 49.9932 acre remainder tract and said 81.0465
	acre tract of land to a 5/8" iron rod with EIC cap (found) for angle
	point;
	THENCE S 89°41-55" W, a distance of 653.87 feet along the
	common line of said 49.9932 acre remainder tract and said 81.0465
	acre tract of land to a 5/8" iron rod with ElC cap (found) marking
	the Northwest corner of said 49.9932 acre remainder tract, an
	interior corner of said 81.0465 acre tract of land and the Southwest
	corner of the herein described 44.7455 acre tract of land;
	THENCE N 01°50'36" W, a distance of 1,285.12 feet to a 5/8"
	iron rod with EIC cap (set) in the South line of said 139.81 acre
	tract of land and the North line of said 81.0465 acre tract of land
	marking Northwest corner of the herein described 44.7455 acre tract
	of land;
	THENCE N 89°56'03" E, a distance of 1,573.03 feet along the
	common line of said 139.81 acre and said 81.0485 acre tracts of land
	to the POINT OF BEGINNING and containing 44.7455 acres of land.
	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
	7998, Special District Local Laws Code, as added by Section 1 of
	this Act, is amended by adding Section 7998.106 to read as follows:
	Sec. 7998.106.  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, 2017.
	* * * * *