HB5699 - 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.

      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