By: Rodriguez (Senate Sponsor - Watson) H.B. No. 1756
(In the Senate - Received from the House April 11, 2011;
April 20, 2011, read first time and referred to Committee on
Intergovernmental Relations; May 20, 2011, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 5,
Nays 0; May 20, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1756 By: Nichols
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Pilot Knob Municipal Utility
District No. 2; 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 8376 to read as follows:
CHAPTER 8376. PILOT KNOB MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8376.001. 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 Pilot Knob Municipal Utility
District No. 2.
(5) "Municipality" means a municipality in whose
corporate limits or extraterritorial jurisdiction the district is
located.
Sec. 8376.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 8376.003. 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 8376.051 of this code and Section
49.102, Water Code.
Sec. 8376.004. CONSENT OF MUNICIPALITY REQUIRED. (a) The
temporary directors may not hold an election under Section 8376.003
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. 8376.005. 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. 8376.006. 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 8376.007-8376.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8376.051. 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 8376.052, 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. 8376.052. 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 8376.003; 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 8376.003 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 8376.003; 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 8376.053-8376.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8376.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 8376.102. 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. 8376.103. 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. 8376.104. APPROVAL OF ROAD PROJECT. (a) The district
may not undertake a road project authorized by Section 8376.103
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. 8376.105. 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. 8376.106. 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. 8376.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
[Sections 8376.108-8376.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8376.151. 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 8376.153.
(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. 8376.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 8376.151, 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 8376.105, the total ad valorem tax rate
of the district may not be less than the total ad valorem tax rate of
the municipality.
Sec. 8376.153. 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 8376.154-8376.200 reserved for expansion]
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 8376.201. 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. 8376.202. 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. 8376.203. 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 8376.204-8376.250 reserved for expansion]
SUBCHAPTER F. STRATEGIC PARTNERSHIP AGREEMENT; MUNICIPAL
ANNEXATION AND NOTICE
Sec. 8376.251. 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. 8376.252. 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 8376.004.
(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 Pilot Knob Municipal Utility District No. 2
initially includes all the territory contained in the following
area:
557.187 acres of land described below:
A DESCRIPTION OF 557.672 ACRES IN THE SANTIAGO DEL VALLE GRANT IN
TRAVIS COUNTY, TEXAS, BEING A PORTION OF A 138.540 ACRE TRACT
DESCRIBED IN A GENERAL WARRANTY DEED TO JONA ACQUISITION INC.,
DATED MARCH 2, 2007 AND RECORDED IN DOCUMENT NO. 2007038642 OF THE
OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A
20.807 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA
ACQUISITION INC., DATED JANUARY 3, 2007 AND RECORDED IN DOCUMENT
NO. 2007003159 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY,
TEXAS, A PORTION OF AN 81.018 ACRE TRACT DESCRIBED IN A SPECIAL
WARRANTY DEED TO JONA ACQUISITION INC., DATED DECEMBER 12, 2006 AND
RECORDED IN DOCUMENT NO. 2006246454 OF THE OFFICIAL PUBLIC RECORDS
OF TRAVIS COUNTY, TEXAS, A PORTION OF A 103.415 ACRE TRACT DESCRIBED
IN A SPECIAL WARRANTY DEED TO JONA ACQUISITION INC., DATED NOVEMBER
20, 2006 AND RECORDED IN DOCUMENT NO. 2006224021 OF THE OFFICIAL
PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF A 167.748 ACRE
TRACT DESCRIBED IN A GENERAL WARRANTY DEED TO JONA ACQUISITION
INC., DATED DECEMBER 13, 2006 AND RECORDED IN DOCUMENT NO.
2006241307 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS,
A PORTION OF A 42.558 ACRE TRACT DESCRIBED IN A GENERAL WARRANTY
DEED TO JONA ACQUISITION INC., DATED MAY 16, 2008 AND RECORDED IN
DOCUMENT NO. 2008083861 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS
COUNTY, TEXAS, A PORTION OF A 20.005 ACRE TRACT DESCRIBED IN A
WARRANTY DEED WITH VENDOR'S LIEN TO JOHN T. HALDENSTEIN AND JOSHUA
N. HALDENSTEIN, DATED DECEMBER 14, 2000 AND RECORDED IN DOCUMENT
NO. 2000203669 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY,
TEXAS, A PORTION OF A 198.302 ACRE TRACT DESCRIBED IN A GENERAL
WARRANTY DEED TO JONA ACQUISITION INC., DATED DECEMBER 20, 2006 AND
RECORDED IN DOCUMENT NO. 2006244772 OF THE OFFICIAL PUBLIC RECORDS
OF TRAVIS COUNTY, TEXAS, A PORTION OF A 232.233 ACRE TRACT DESCRIBED
IN A SPECIAL WARRANTY DEED WITH VENDOR'S LIEN TO JONA ACQUISITION
INC., DATED JANUARY 8, 2009 AND RECORDED IN DOCUMENT NO. 2009003190
OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS, A PORTION OF
A 37.390 ACRE TRACT DESCRIBED IN A GENERAL WARRANTY DEED TO JONA
ACQUISITION INC., DATED OCTOBER 30, 2008 AND RECORDED IN DOCUMENT
NO. 2008179828 OF THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY,
TEXAS, A PORTION OF COLTON BLUFF SPRINGS ROAD (APPARENT
RIGHT-OF-WAY WIDTH VARIES), AND ALL OF A 67.339 ACRE ACRE TRACT
DESCRIBED IN A SPECIAL WARRANTY DEED TO JONA ACQUISITION INC.,
DATED NOVEMBER 7, 2007 AND RECORDED IN DOCUMENT NO. 2007204509 OF
THE OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS; SAID 557.672
ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:
BEGINNING at a 1/2" iron pipe found for an interior ell corner in
the north line of said 138.540 acre tract, same being an angle point
in the south line of a 380.080 acre tract described in a deed to
Ernest Collins and Floretta Collins, recorded in Volume 12791, Page
11 of the Real Property Records of Travis County, Texas;
THENCE crossing said 138.540 acre tract, said 20.807 acre tract,
Colton Bluff Springs Road, said 81.018 acre tract, said 103.415
acre tract, said 167.748 acre tract, said 42.558 acre tract, said
20.005 acre tract, said 198.302 acre tract, said 232.233 acre
tract, and said 37.390 acre tract, the following thirty (30)
courses and distances:
1. South 27°05'52" West, a distance of 3.20 feet to a
calculated point;
2. South 47°34'32" East, a distance of 42.94 feet to a
calculated point;
3. With a curve to the left, having a radius of 2002.94
feet, a delta angle of 22°31'58", an arc length of 787.70
feet, and a chord which bears South 58°50'31" East, a distance
of 782.64 feet to a calculated point;
4. South 19°53'30" West, a distance of 342.26 feet to a
calculated point;
5. With a curve to the left, having a radius of 499.99
feet, a delta angle of 41°14'55", an arc length of 359.95
feet, and a chord which bears South 00°43'58" East, a distance
of 352.23 feet to a calculated point;
6. South 21°21'01" East, a distance of 1149.03 feet to a
calculated point;
7. With a curve to the right, having a radius of 800.00
feet, a delta angle of 04°05'43", an arc length of 57.18 feet,
and a chord which bears South 19°18'34" East, a distance of
57.17 feet to a calculated point;
8. South 27°06'32" West, a distance of 1006.99 feet to a
calculated point;
9. North 62°55'07" West, a distance of 393.93 feet to a
calculated point;
10. South 27°04'42" West, a distance of 1090.01 feet to
a calculated point;
11. South 62°55'07" East, a distance of 393.35 feet to a
calculated point;
12. South 27°05'07" West, a distance of 1284.12 feet to
a calculated point;
13. South 27°11'27" West, a distance of 450.14 feet to a
calculated point;
14. With a curve to the left, having a radius of 1399.96
feet, a delta angle of 31°05'54", an arc length of 759.86
feet, and a chord which bears North 77°33'02" West, a distance
of 750.56 feet to a calculated point;
15. South 86°54'01" West, a distance of 948.14 feet to a
calculated point;
16. With a curve to the right, having a radius of
1399.96 feet, a delta angle of 31°17'38", an arc length of
764.63 feet, and a chord which bears North 77°27'10" West, a
distance of 755.16 feet to a calculated point;
17. North 61°48'21" West, a distance of 1135.34 feet to
a calculated point;
18. North 28°11'39" East, a distance of 910.01 feet to a
calculated point;
19. With a curve to the right, having a radius of 431.98
feet, a delta angle of 53°14'32", an arc length of 401.42
feet, and a chord which bears North 58°50'30" East, a distance
of 387.13 feet to a calculated point;
20. North 16°01'51" West, a distance of 256.62 feet to a
calculated point;
21. With a curve to the left, having a radius of 606.85
feet, a delta angle of 50°15'23", an arc length of 532.29
feet, and a chord which bears North 37°39'34" West, a distance
of 515.39 feet to a calculated point;
22. North 62°55'18" West, a distance of 292.66 feet to a
calculated point;
23. With a curve to the right, having a radius of
1466.51 feet, a delta angle of 180°00'00", an arc length of
4607.17 feet, and a chord which bears North 27°04'42" East, a
distance of 2933.02 feet to a calculated point;
24. South 62°55'18" East, a distance of 292.66 feet to a
calculated point;
25. With a curve to the left, having a radius of 606.85
feet, a delta angle of 50°15'23", an arc length of 532.29
feet, and a chord which bears South 88°11'02" East, a distance
of 515.39 feet to a calculated point;
26. North 70°11'14" East, a distance of 260.49 feet to a
calculated point;
27. With a curve to the right, having a radius of 428.50
feet, a delta angle of 57°46'46", an arc length of 432.12
feet, and a chord which bears North 02°55'38" West, a distance
of 414.04 feet to a calculated point;
28. North 25°57'45" East, a distance of 891.49 feet to a
calculated point;
29. With a curve to the right, having a radius of 750.00
feet, a delta angle of 16°27'44", an arc length of 215.49
feet, and a chord which bears North 34°11'36" East, a distance
of 214.75 feet to a calculated point;
30. North 42°25'28" East, a distance of 130.83 feet to a
calculated point in the common line of said 138.540 acre
tract and said 380.080 acre tract, from which a 3/4" iron pipe
found for an angle point in said common line bears North
47°34'32" West, a distance of 1131.25 feet;
THENCE South 47°34'32" East, with said common line, a distance of
1475.59 feet to the POINT OF BEGINNING, containing 557.672 acres of
land, more or less.
SAVE AND EXCEPT 0.485 ACRES:
BEING ALL OF A 21,064 SQUARE FOOT TRACT DESCRIBED IN A WARRANTY DEED
AND ACCESS EASEMENT TO CREEDMOOR-MAHA WATER SUPPLY CORPORATION,
DATED MAY 24 1999 AND RECORDED IN DOCUMENT NO. 1999070566 OF THE
OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY TEXAS; SAID 0.485 ACRE
TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:
BEGINNING at a 1/2" rebar found for the south corner of said 21,064
square foot tract, same being an angle point in the southwest line
of said 232.233 acre tract, also being in the northeast line of said
37.390 acre tract;
THENCE North 62°15'58" West, with the southwest line of said 21,064
square foot tract, same being the northeast line of said 37.390 acre
tract, a distance of 84.16 feet to a 1/2" rebar with Chaparral cap
found for the west corner of said 21,064 square foot tract, same
being an angle point in the southwest line of said 232.233 acre
tract;
THENCE with the common line of said 21,064 square foot tract and
said 232.233 acre tract, the following three (3) courses and
distances:
1. North 27°03'32" East, a distance of 251.09 feet to a
1/2" rebar found;
2. South 62°00'51" East, a distance of 84.16 feet to a
1/2" rebar found;
3. South 27°03'32" West, a distance of 250.72 feet to
the POINT OF BEGINNING, containing 0.485 acres of land, more
or less.
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.
* * * * *