CHAPTER 8326. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 525

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8326. HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 525

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8326.001. 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. 525.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.002. NATURE OF DISTRICT. The district is a municipal

utility district created under Section 59, Article XVI, Texas

Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.003. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors may not hold an election under Section 8326.003 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.005. 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, or improvement of macadamized,

graveled, or paved roads described by Section 54.234, Water Code,

or improvements, including storm drainage, in aid of those roads.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.006. 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 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8326.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors.

(b) Except as provided by Section 8326.052, directors serve

staggered four-year terms.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.052. TEMPORARY DIRECTORS. (a) On or after the

effective date of the Act creating this chapter, the owner or

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

in the district may submit a petition to the Texas Commission on

Environmental Quality requesting that the commission appoint as

temporary directors the five persons named in the petition. The

commission shall appoint as temporary directors the five persons

named in the petition.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

8326.003; or

(2) the fourth anniversary of the effective date of the Act

creating this chapter.

(c) If permanent directors have not been elected under Section

8326.003 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

8326.003; 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 Texas Commission on Environmental

Quality 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8326.101. 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 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.102. 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 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.103. AUTHORITY FOR ROAD PROJECTS. (a) Under Section

52, Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, and convey

to this state, a county, or a municipality for operation and

maintenance macadamized, graveled, or paved roads described by

Section 54.234, Water Code, or improvements, including storm

drainage, in aid of those roads.

(b) The district may exercise the powers provided by this

section without submitting a petition to or obtaining approval

from the Texas Commission on Environmental Quality as required by

Section 54.234, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.104. APPROVAL OF ROAD PROJECT. (a) The district may

not undertake a road project authorized by Section 8326.103

unless:

(1) each municipality or county that will operate and maintain

the road has approved the plans and specifications of the road

project, if a municipality or county will operate and maintain

the road; or

(2) the Texas Transportation Commission has approved the plans

and specifications of the road project, if the state will operate

and maintain the road.

(b) Except as provided by Subsection (a), the district is not

required to obtain approval from the Texas Transportation

Commission to design, acquire, construct, finance, issue bonds

for, improve, or convey a road project.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.105. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.106. LIMITATION ON USE OF EMINENT DOMAIN. The

district may not exercise the power of eminent domain outside the

district to acquire a site or easement for:

(1) a road project authorized by Section 8326.103; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8326.151. 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 8326.153.

(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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8326.151, 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.153. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 8326.201. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.202. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.

Sec. 8326.203. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

226, Sec. 1, eff. May 27, 2009.