Bill Text: TX SB1913 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to the creation of the Southeast Travis County Municipal Utility District No. 1; providing authority to impose a tax and issue bonds.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Passed) 2011-06-17 - Effective immediately [SB1913 Detail]

Download: Texas-2011-SB1913-Enrolled.html

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S.B. No. 1913

relating to the creation of the Southeast Travis County Municipal
Utility District No. 1; providing authority to impose a tax and
issue bonds.
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 8382 to read as follows:
CHAPTER 8382. SOUTHEAST TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT
NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8382.001. 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 Southeast Travis County
Municipal Utility District No. 1.
(5) "Municipality" means a municipality in whose
corporate limits or extraterritorial jurisdiction the district is
located.
Sec. 8382.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8382.003. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The temporary directors shall hold an election to
confirm the creation of the district and to elect permanent
directors as provided by Section 8382.051 of this code and Section
49.102, Water Code.
Sec. 8382.004. CONSENT OF MUNICIPALITY REQUIRED. (a) The
temporary directors may not hold an election under Section 8382.003
until each municipality has consented by ordinance or resolution to
the creation of the district and to the inclusion of land in the
district.
(b) If a municipality does not consent to the creation of
the district or if the district does not enter into an agreement
required by the terms of the municipal ordinance or resolution
consenting to the creation of the district under this section
before September 1, 2012:
(1) the district is dissolved September 1, 2012,
except that:
(A) any debts incurred shall be paid;
(B) any assets that remain after the payment of
debts shall be transferred to the municipality or another local
governmental entity to be used for a public purpose; and
(C) the organization of the district shall be
maintained until all debts are paid and remaining assets are
transferred; and
(2) this chapter expires September 1, 2012.
Sec. 8382.005. 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.
Sec. 8382.006. 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.
[Sections 8382.007-8382.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8382.051. GOVERNING BODY; TERMS. (a) Except as
provided by Subsection (b), the district is governed by a board of
five elected directors.
(b) If required under the terms of the agreement, ordinance,
or resolution by which a municipality consents to the creation of
the district, the board consists of:
(1) four elected directors; and
(2) one director appointed by the governing body of
the municipality.
(c) A director appointed under Subsection (b)(2) is not
required to be a qualified voter of the district or to own land
subject to taxation in the district.
(d) Except as provided by Section 8382.052, directors serve
staggered four-year terms. A permanent director may not serve more
than two four-year terms.
(e) The common law doctrine of incompatibility does not
disqualify an official or employee of a municipality from being
appointed a director by the governing body of a municipality under
Subsection (b)(2), and a director appointed to the board may
continue to serve in a public office of or be employed by the
municipality.
Sec. 8382.052. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting 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 commission 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 8382.003; 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 8382.003 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 8382.003; 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.
[Sections 8382.053-8382.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8382.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8382.102. 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. 8382.103. 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 commission as required by Section 54.234, Water Code.
Sec. 8382.104. APPROVAL OF ROAD PROJECT. (a) The district
may not undertake a road project authorized by Section 8382.103
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.
Sec. 8382.105. COMPLIANCE WITH AND ENFORCEABILITY OF
MUNICIPAL CONSENT AGREEMENT, ORDINANCE, OR RESOLUTION. (a) 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.
(b) Any agreement between the district and a municipality
related to the municipality's consent to the creation of the
district is valid and enforceable.
(c) On the issuance of bonds by the district, the district
is considered to have waived sovereign immunity to suit by a
municipality for the purpose of adjudicating a claim for breach of
an agreement described by this section.
Sec. 8382.106. CONTRACT TO FURTHER REGIONAL COOPERATION.
The district and a municipality may contract on terms that the board
and governing body of the municipality agree will further regional
cooperation between the district and the municipality.
Sec. 8382.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
[Sections 8382.108-8382.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8382.151. 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 8382.153.
(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. 8382.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8382.151, 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.
(c) If required by an agreement between the district and a
municipality under Section 8382.105, the total ad valorem tax rate
of the district may not be less than the total ad valorem tax rate of
the municipality.
Sec. 8382.153. 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.
[Sections 8382.154-8382.200 reserved for expansion]
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8382.201. 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. 8382.202. 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. 8382.203. 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.
[Sections 8382.204-8382.250 reserved for expansion]
SUBCHAPTER F. STRATEGIC PARTNERSHIP AGREEMENT; MUNICIPAL
ANNEXATION AND NOTICE
Sec. 8382.251. STRATEGIC PARTNERSHIP; CONTINUATION OF
DISTRICT AFTER ANNEXATION BY MUNICIPALITY. (a) The district may
continue to exist as a limited district after full-purpose
annexation by a municipality if the district and the annexing
municipality state the terms of the limited district's existence in
a strategic partnership agreement under Section 43.0751, Local
Government Code.
(b) The strategic partnership agreement may provide for a
term of any number of years. The limitation in Section
43.0751(g)(2), Local Government Code, on the length of the term
does not apply to a limited district created under this section.
Sec. 8382.252. MUNICIPAL ANNEXATION; NOTICE.
(a) Sections 43.0561 and 43.0562, Local Government Code, do not
apply to the annexation of the district by a municipality that
consents to the creation of the district under Section 8382.004.
(b) Not later than the 30th day after the date a
municipality adopts a resolution or ordinance consenting to the
creation of the district, the municipality shall file, in the real
property records of the county in which the land to be included in
the district is located, a notice to a purchaser of real property in
the district that describes:
(1) the municipality's authority and intention to
annex the district; and
(2) the anticipated date of the annexation.
(c) After the notice is filed, a person who proposes to sell
or otherwise convey real property in the district must include the
information contained in the municipality's notice in the Notice to
Purchasers required by Section 49.452, Water Code.
SECTION 2. The Southeast Travis County Municipal Utility
District No. 1 initially includes all the territory contained in
the following area:
BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND OUT OF AND A PART OF
THE JOSE ANTONIO NAVARRO SURVEY, ABSTRACT 18, SITUATED IN TRAVIS
COUNTY, TEXAS, SAID TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED
AS BEING ALL OF THAT CERTAIN 54.350 ACRE TRACT OF LAND CONVEYED TO
QUALICO CR, LP IN DOCUMENT NUMBER 2007154327, ALL OF THAT CERTAIN
110.263 ACRE TRACT OF LAND CONVEYED TO QUALICO CR, LP IN DOCUMENT
NUMBER 2008139826 AND ALL OF THAT CERTAIN 23.106 ACRE TRACT OF LAND
CONVEYED TO QUALICO CR, LP IN DOCUMENT NUMBER 2009141317, ALL OF THE
OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, SAID 187.720 ACRE
TRACT OF LAND BEING MORE FULLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:
BEGINNING, at an iron rod found at the northeast corner of said
54.350 acre Qualico CR, LP tract, also being the northwest corner of
Timber Hills Subdivision, a subdivision recorded in Book 72, Page
21 of the Plat Records of Travis County, Texas (P.R.T.C.TX.), also
being a point located in the southern right-of-way line of Pearce
Lane, a public roadway, for the northeast corner and POINT OF
BEGINNING of the herein described tract,
THENCE, with the common boundary line of said Timber Hills
Subdivision and said Qualico CR, LP tracts, the following six (6)
courses and distances, numbered 1 through 6,
1. S27°56'54"W, a distance of 259.21 feet to an iron rod
found ,
2. S27°34'16"W, a distance of 1900.84 feet to an iron rod
found,
3. S27°39'26"W, a distance of 763.63 feet to an iron rod
found,
4. S27°48'23"W, a distance of 644.68 feet to an iron rod
found,
5. S27°43'28"W, a distance of 242.58 feet to an iron rod
found and
6. S27°15'41"W, a distance of 252.18 feet to an iron rod
found at the southeast corner of said 23.106 acre Qualico CR,
LP tract for the southeast corner of the herein described
tract,
THENCE, with the southern boundary line of said 23.106 acre Qualico
CR, LP tract, and the northern boundary lines of that certain 67.70
acre tract of land conveyed to Billy J. Cannady, et. ux. in Volume
8080, Page 452 of the Deed Records of Travis County, Texas and that
certain 25 acre tract of land conveyed to Bernard E. Stratman, Jr.
in Volume 4488, Page 1362 of the Deed Records of Travis County,
Texas, the following four (4) courses and distances, numbered 1
through 4,
1. N63°04'01"W, a distance of 214.78 feet to an iron rod
found,
2. N62°26'16"W, a distance of 814.31 feet to an iron rod
found,
3. N62°23'58"W, a distance of 121.87 feet to an iron rod
found and
4. N62°25'02"W, a distance of 876.13 feet to an iron rod
found at the southwest corner of said 23.106 acre Qualico CR,
LP tract, for the southwest corner of the herein described
tract,
THENCE, with the western boundary line of said all Qualico CR, LP
tracts and that certain 46.041 acre tract of land conveyed to Son
Dau Trust in Volume 12274, Page 200 in the Real Property Records of
Travis County, Texas, N27°42'19"E, a distance of 4000.33 feet to an
iron rod found at the northwest corner of said 54.350 acre Qualico
CR, LP tract, for the northwest corner of the herein described
tract,
THENCE, with the northern boundary line of said 54.350 acre Qualico
CR, LP tract, S64°40'51"E, a distance of 1000.59 feet to an iron rod
found, also being a point on the southern right-of-way of said
Pearce Lane,
THENCE, continuing with the northern boundary line of said 54.350
acre Qualico CR, LP tract and the southern right-of-way of said
Pearce Lane, the following two (2) courses and distances, numbered
1 and 2,
1. S64°40'52"E, a distance of 571.91 feet to an iron rod
found at a point of curvature to the right,
2. with said curve to the right having a radius of
6411.14 feet, an arc length of 451.33 feet and whose chord
bears, S62°50'33"E, a distance of 451.24 feet to the POINT OF
BEGINNING, and containing 187.720 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. 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, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1913 passed the Senate on
May 17, 2011, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1913 passed the House on
May 25, 2011, by the following vote: Yeas 147, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor