H.B. No. 5699 amends the Special District Local Laws Code by adding Chapter 8024A, which specifically addresses the Harris County Municipal Utility District No. 405. This new chapter grants the district the authority to enter into written contracts with owners of undeveloped property to exclude their property from the district under terms deemed advantageous by the district's board of directors. The bill outlines the process for exclusion, including the requirement that the district must record an order of exclusion in the real property records of Harris County and stipulates that excluded properties will no longer be entitled to district services.

Additionally, the bill clarifies the financial implications of property exclusion, stating that the excluded property's share of the district's indebtedness remains the owner's obligation until fully paid. It allows the district to continue levying taxes on the excluded property to secure its indebtedness and ensures that the rights of bondholders are not diminished by the exclusion. The legislation also validates all prior acts of the district before the bill's effective date, ensuring continuity and legal certainty for the district's operations.

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