CHAPTER 8217. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 509

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8217. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 509

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8217.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Harris County Municipal Utility

District No. 509.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.002. NATURE OF DISTRICT. (a) The district is a

municipal utility district created under and essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution.

(b) The district, to the extent authorized by Section 8217.103

and Section 52, Article III, Texas Constitution, has road powers.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.003. CONFIRMATION ELECTION REQUIRED. The board shall

hold an election to confirm the creation of the district as

provided by Section 49.102, Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. All land

and other property in the district will benefit from the

improvements and services to be provided by the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating 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 bond for a purpose for which the

district is created or to pay the principal of and interest on

the bond;

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

(4) legality or operation.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8217.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors.

(b) Directors serve staggered four-year terms.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

For expiration of this section, see Subsection (c).

Sec. 8217.052. INITIAL DIRECTORS. (a) The initial board

consists of:

(1) Alan Mueller;

(2) Wesley Christensen;

(3) Frederick W. Graney;

(4) Joseph Perillo; and

(5) Paul M. Merriman.

(b) Unless the initial board agrees otherwise, the initial

directors shall draw lots to determine which two shall serve

until the first regularly scheduled election of directors and

which three shall serve until the second regularly scheduled

election of directors.

(c) This section expires September 1, 2014.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8217.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties necessary to accomplish the purposes for which

the district is created.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.102. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.103. ROAD PROJECTS. (a) Under Section 52, Article

III, Texas Constitution, the district may finance, construct, or

acquire a road project as provided by this section.

(b) The district shall employ or contract with a licensed

engineer to certify whether a proposed road project meets the

criteria for a thoroughfare, arterial, or collector road of:

(1) a county in whose jurisdiction the proposed road project is

located; or

(2) a municipality in whose corporate limits or extraterritorial

jurisdiction the proposed road project is located.

(c) The district may finance, construct, or acquire a road that

has been certified by the licensed engineer as a thoroughfare,

arterial, or collector road, or any improvements in aid of the

certified road.

(d) A road project must meet all applicable standards,

regulations, ordinances, or orders of:

(1) each municipality in whose corporate limits or

extraterritorial jurisdiction the road project is located; and

(2) each county in which the road project is located if the road

project is not located in the corporate limits of a municipality.

(e) The district may, with the consent of the municipality or

county, convey a completed road project to:

(1) a municipality in whose corporate limits or extraterritorial

jurisdiction the road project is located; or

(2) a county in which the road project is located.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.104. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR

RESOLUTION. The district shall comply with all applicable

requirements of any ordinance or resolution, adopted by the

governing body of a municipality under Section 54.016, Water

Code, that consents to the creation of the district or to the

inclusion of land in the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8217.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The

district may issue, without an election, bonds and other

obligations secured by revenue or contract payments from a source

other than ad valorem taxation.

(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 district voters voting at

an election held for that purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8217.151, the

district may impose an operation and maintenance tax on taxable

property in the district as provided by Section 49.107, Water

Code.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

SUBCHAPTER E. BONDS

Sec. 8217.201. 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, grants, or

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

for any authorized district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.202. BONDS FOR ROAD PROJECTS. At the time of

issuance, the total principal amount of a bond, note, or other

obligation issued or incurred to finance a road project may not

exceed one-fourth of the assessed value of real property in the

district according to the most recent certified tax appraisal

roll for Harris County.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.

Sec. 8217.203. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the

time bonds or other obligations payable wholly or partly from ad

valorem taxes are issued:

(1) the board shall impose 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; and

(2) the district annually shall impose an ad valorem tax on all

taxable property in the district in an amount sufficient to:

(A) pay the interest on the bonds or other obligations as the

interest becomes due;

(B) create a sinking fund for the payment of the principal of

the bonds or other obligations when due or the redemption price

at any earlier required redemption date; and

(C) pay the expenses of imposing the taxes.

Added by Acts 2007, 80th Leg., R.S., Ch.

1133, Sec. 1, eff. June 15, 2007.