By: Watson S.B. No. 1913 A BILL TO BE ENTITLED AN ACT relating to the creation of the Southeast Travis County Municipal Utility District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. 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 8____ to read as follows: CHAPTER 8___. SOUTHEAST TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO._1 SUBCHAPTER A. GENERAL PROVISIONS Sec. 8___.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Director" means a board member. (3) "District" means the Southeast Travis County Municipal Utility District No. 1. Sec. 8___.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8___.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. Sec. 8___.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8___.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. Sec. 8___.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, improvement, operation, or maintenance of macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8___.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. [Sections 8___.007-8___.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8___.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8___.052, directors serve staggered four-year terms. Sec. 8___.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 8___.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 8___.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 8___.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 8___.053-8___.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8___.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8___.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. 8___.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. 8___.104. APPROVAL OF ROAD PROJECT. (a) The district may not undertake a road project authorized by Section 8___.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. 8___.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. Sec. 8___.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 8___.103; or (2) a recreational facility as defined by Section 49.462, Water Code. [Sections 8___.107-8___.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8___.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 8___.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. 8___.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8___.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. Sec. 8___.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 8___.154-8___.200 reserved for expansion] SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8___.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. 8___.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. 8___.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. 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. (a) Section 8___.106, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house. (b) If this Act does not receive a two-thirds vote of all members elected to each house, Subchapter C, Chapter 8___, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8___.106 to read as follows: Section 8___.106. NO EMINENT DOMAIN POWER. The District may not exercise the power of eminent domain. (c) This section is not intended to be an expression of a legislative interpretation of the requirements of Section 17c, Article I, Texas Constitution. SECTION 5. Except as provided by Section 4 of this Act: (1) this Act takes effect immediately if it receives a vote of two-thirds of all members elected to each house, as provided by Section 39, Article III, Texas Constitution; and (2) if this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.