By: Schwertner S.B. No. 1883 (In the Senate - Filed April 8, 2013; April 9, 2013, read first time and referred to Committee on Intergovernmental Relations; April 29, 2013, reported favorably by the following vote: Yeas 5, Nays 0; April 29, 2013, sent to printer.) A BILL TO BE ENTITLED AN ACT relating to the creation of the Leander TODD Municipal Utility District No. 1 of Williamson County; 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 8412 to read as follows: CHAPTER 8412. LEANDER TODD MUNICIPAL UTILITY DISTRICT NO. 1 OF WILLIAMSON COUNTY SUBCHAPTER A. GENERAL PROVISIONS Sec. 8412.001. 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 Leander TODD Municipal Utility District No. 1 of Williamson County. Sec. 8412.002. NATURE OF DISTRICT. The district is a municipal utility district created under Section 59, Article XVI, Texas Constitution. Sec. 8412.003. 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. 8412.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary directors may not hold an election under Section 8412.003 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. 8412.005. 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. 8412.006. 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. Sec. 8412.007. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT REINVESTMENT ZONE. (a) The district is eligible to be included in a tax increment reinvestment zone created under Chapter 311, Tax Code. (b) If the City of Leander has created or creates a tax increment reinvestment zone described by Subsection (a) that includes all or part of the territory of the district, the City of Leander and the board of directors of the zone or a developer of property within the tax increment reinvestment zone that receives or will receive money from the tax increment fund, by contract with the district, may grant money to the district from the tax increment fund to be used for a permissible purpose of the district, including: (1) the right to pledge the money as security for a bond or other obligation issued by the district; and (2) any permissible purpose of a corporation under Section 380.002(b), Local Government Code. [Sections 8412.008-8412.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 8412.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five elected directors. (b) Except as provided by Section 8412.052, directors serve staggered four-year terms. Sec. 8412.052. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) _________________; (2) _________________; (3) _________________; (4) _________________; and (5) _________________. (b) Temporary directors serve until the earlier of: (1) the date permanent directors are elected under Section 8412.003; 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 8412.003 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 8412.003; 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 8412.053-8412.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 8412.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 8412.102. 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. 8412.103. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads. Sec. 8412.104. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located. (b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project. Sec. 8412.105. COMPLIANCE WITH MUNICIPAL CONSENT 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) In addition to all the rights and remedies provided by other law, if the district violates the terms of an ordinance or resolution described by Subsection (a), the municipality is entitled to injunctive relief or a writ of mandamus issued by a court requiring the district and the district's officials to observe and comply with the terms of the ordinance or resolution. Sec. 8412.106. EFFECT OF ANNEXATION OR INCLUSION WITHIN THE CORPORATE BOUNDARIES OF THE CITY OF LEANDER. Notwithstanding Section 54.016(f)(2), Water Code, an allocation agreement between the City of Leander and the district that provides for the allocation of the taxes or revenues of the district and the city following the date of inclusion of all the district's territory in the corporate limits of the city may provide that the total annual ad valorem taxes collected by the city and the district from taxable property in the district may exceed the city's ad valorem tax on that property. Sec. 8412.107. 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 8412.103; or (2) a recreational facility as defined by Section 49.462, Water Code. [Sections 8412.108-8412.150 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 8412.151. 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 8412.153. (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. 8412.152. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held under Section 8412.151, 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. 8412.153. 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 8412.154-8412.200 reserved for expansion] SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS Sec. 8412.201. 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, tax increment payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose. Sec. 8412.202. 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. 8412.203. 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 Leander TODD Municipal Utility District No. 1 of Williamson County initially includes all the territory contained in the following area: TRACT I: THAT CERTAIN 297.47 ACRES, BEING A PART OF THE WILLIAM MANSIL A- 437 AND THE HENRY GARMES SURVEY A-269, WILLIAMSON COUNTY, TEXAS, SAID 297.47 ACRE TRACT BEING FURTHER DESCRIBED AS BEING ALL OF THAT 40.17 ACRE TRACT DESCRIBED IN A SPECIAL WARRANTY DEED TO JEAN BAPTISTE, LTD. AS RECORDED IN DOCUMENT NO. 9926687 OF THE OFFICIAL PUBLIC RECORDS OF THE SAID COUNTY, AND BEING A PORTION OF THOSE THREE (3) TRACTS OF LAND DESCRIBED IN THE FOLLOWING TWO (2) SPECIAL WARRANTY DEEDS TO THE SAID JEAN BAPTISTE, LTD., RECORDED IN THE SAID OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY; 1) DOCUMENT NUMBER 9926685, TRACT ONE CONTAINING 199.8712 ACRES AND; 2) DOCUMENT NUMBER 9926686, TRACT ONE CONTAINING 77.49 ACRES AND TRACT TWO CONTAINING 77.484 ACRES, SAID 297.47 ACRE TRACT ALSO BEING EFFECTED BY A BOUNDARY LINE AGREEMENT RECORDED IN DOCUMENT NUMBER 2005050819 OF THE OFFICIAL PUBLIC RECORDS OF WILLIAMSON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at an iron rod with cap set (grid coordinates, N:10,194,960.701, E:3,075,023.108) in the north line of the said 77.49 acre tract, same being a south line of a 4.91 acre tract of land described in a deed to Gary Worth Seaman, et at as recorded in Document Number 9648053 of the Official Public Records of the said County from which an iron rod found at the northwest corner of said 77.49 acre tract bears S69°21'36"W at 546.24 feet passing an iron rod with cap found at the northeast corner of that 8.305 acre tract of land described in a Special Warranty Deed to County of Williamson as recorded in Document Number 2005012314 of said Official Public Records, continuing for a total distance of 830.77 feet; THENCE, with the north line of the said 77.49 acre tract, the following two (2) courses: 1) Same being the south line of the said 4.91 acre tract, N 69° 21' 36"E, 587.31 feet to a calculated point at the southeast corner of the said 4.91 acre tract, same being the southwest corner of that certain 5.27 acre tract described in a deed to The Moore Company as recorded in Document No. 9644304 of the said Official Public Records; 2) Same being the south line of the said 5.27 acre tract, N 69° 21' 51" E, 1474.49 feet to an iron rod found at the northeast comer of the said 77.49 acre tract, said iron rod being in the west line of that certain 2.3872 acre tract described in a deed to Benita Cruces as recorded in Document Number 2003040417 of the said Official Public Records; THENCE, with the east line of the said 77.49 acre tract, same being the west line of the said Cruces tract, S22° 33' 24"E, 265.99 feet to a calculated point at the northwest comer of the said 40.17 acre tract; THENCE, with the north line of the said 40.17 acre tract, the following ten (10) courses: 1) Same being the south line of the said Cruces tract, N 88° 01' 00" E, 317.05 feet to an iron rod found at the southeast corner of the said Cruces tract, same being the southwest corner of that certain 10.73 acre tract of land described in a deed to Ernest M. Jordan as recorded in Volume 623, Page 350 of the said Official Public Records; 2) N 87° 20' 23" E, 255.92 feet to nail found in tree; 3) N 87° 25' 06"E, 222.59 feet to a nail found in tree; 4) N 88° 38' 50"E, 183.83 feet to a metal fence comer post found at the southeast comer of the said Jordan tract, same being the southwest corner of that certain 10.061 acre tract described in a deed to Teddy Jack Estes as recorded in Volume 2079, Page 729 of the said Official Public Records; 5) N 87° 41' 59" E, 181.09 feet to an iron rod found; 6) N 89° 52' 0l" E, 63.68 feet to a nail found in tree; 7) N 88° 10' 32" E, 244.09 feet to a nail found in tree; 8) N 85° 41' 55" E, 93.59 feet to a nail found in tree; 9) S 88° 05' 09" E, 75.43 feet to a nail found in tree; 10) N 86° 33' 20" E, 93.07 feet to a nail found in tree at the northeast comer of the said 40.17 acre tract, same being the southeast comer of the said 10.061 acre tract and in the southwest line of Lot 8, South San Gabriel Ranches, a subdivision recorded in Volume 5, Page 12 of the Plat Records of the said County; THENCE, with an east line of the said 40.17 acre tract, same being the southwest line of the said Lot 8, S 33° 14' 25" E, 246.90 feet to a nail found at the south corner of the said Lot 8, same being in the west right-of-way line of County Road 270; THENCE, with the east line of the said 40.17 acre tract and the west line of County Road 270, the following two (2) courses: 1) S 17° 20' 59" W, 514.19 feet to a nail found; 2) S 11°07' 11" E, 459.93 feet to an iron rod found at the southeast comer of the said 40.17 acre tract, same being a northeast comer of that certain 320.38 acre tract described in a deed to Sam Winters and Roy A. Butler as recorded in Volume 511, Page 54 of the said Official Public Records; THENCE, with the south line of the said 40.17 acre tract and a north line of the said 320.38 acre tract, N 89° 47' 15" W, 1366.91 feet to an iron rod found at the southwest corner of the said 40.17 acre tract, said iron rod also being in the northeast line of the said 77.484 acre tract and a northwest corner of the said 320.38 acre tract; THENCE, with the northeast line of the said 77.484 and 199.8712 acre tract same being a southwest line of the said 320.38 acre tract as described in the said boundary line agreement recorded in Document Number 2005050819, S 21° 03' 19" E, 2,658.04 feet to an iron rod found at the southeast corner of the said 199.8712 acre tract, same being an interior corner of the said 320.38 acre tract; THENCE, with the common line of the said 199.8712 acre tract and the said 320.38 acre tract, the following seven (7) courses: 1) S 49° 24' 27" W, 431.16 feet to an iron rod found; 2) S 26° 12' 36" W, 353.97 feet to an iron rod found; 3) S 69° 48' 07" W, 346.17 feet to a calculated point; 4) S 51° 43' 53" W, 400.61 feet to an iron rod found; 5) S 84° 57' 19" W, 279.09 feet to an iron rod found; 6) S 71° 26' 46" W, 416.89 feet to an iron rod found; 7) N 85° 38' 48" W, 88.64 feet to an iron rod found; THENCE, with the common line of the said 199.8712 acre tract and the said 320.38 acre tract as described in the said boundary line agreement recorded in Document Number 2005050819, S 67° 24' 49" W, 61.70 feet to an iron rod with cap set; THENCE, through the interior of said 199.8712 acre tract, the following two (2) courses: 1) N 33° 00 '49" W, 903.85 feet to an iron rod with cap set; 2) S 69° 05' 33'' W, 764.94 feet to an iron rod with cap set in the east line of that 11.104 acre tract described in said deed recorded in Document Number 2005012314; THENCE, continuing through the interior of the said 199.8712 acre tract, and with the east line of that 11.104 acre tract described in said deed recorded in Document Number 2005012314, along a curve to the right having a radius of 5529.58 feet, an arc length of 278.32 feet, a central angle of 2° 53' 02", and a chord which bears N 30° 09' 20" W, 278.29 feet to an iron rod found at the northeast comer of said 11.104 acre tract, on a north line of the said 199.8712 acre tract, same being the south line of that certain tract of land described as 34.9 acres to Louie Bryson and wife, Ruby Bryson and recorded in Volume 525, Page 64 of the said Official Public Records; THENCE, with a common line of the said 199.8712 acre tract and the said 34.9 acre tract, the following two (2) courses: 1) N 67° 50' 41"E, 419.72 feet to an iron rod found; 2) N 21° 22' 21" W,393.09 feet to an iron rod found at the southeast corner of that certain 17.46 acre tract described in a deed to West Texas Trading Retirement, Ltd. as recorded in Volume 2058, Page 119 of the said Official Public Records; THENCE, with the common line of the said 199.8712 acre tract and the said 17.46 acre tract, the following two (2) courses: 1) N 21° 23' 02"W, 306.66 feet to an iron rod found; 2) N 21° 10' 03"W, 312.72 feet to an iron rod found at the southeast comer of that certain 5.96 acre tract described in a deed to Gary G. Bonnet as recorded in Volume 2697, Page 599 of the said Official Public Records; THENCE, with a common line of the said 199.8712 acre tract and the said 5.96 acre tract, N 20° 56' 22'' W, 312.98 feet to an iron rod found at the northeast comer of the said 5.96 acre tract; THENCE, with the common line of the said 199.8712 acre tract and the said 77.484 acre tract, N 69° 35' 16" E, 65.11 feet to an iron rod with cap set; THENCE, through the interior of the said 77.484 acre tract and said 77.49 acre tract, the following four (4) courses: 1) N 13° 48' 31" W, 715.22 feet to an iron rod with cap set; 2) N 84° 52' 36" E, 303.74 feet to an iron rod with cap set; 3) N 04° 46' 08" W, 951.97 feet to an iron rod with cap set; 4) N 20° 34' 25'' W, 435.85 feet to the POINT OF BEGINNING and containing 297.47 acre of land. TRACT II: All that certain 3.185 acres of land out of the residue of the 5.96 acre tract described in the deed from Charles B. Smart to Gary G. Bonnet, recorded under Vol. 2697, Pg. 599 in the Official Public Records of Williamson County, Texas, in the William Mansil Survey, A-437, Williamson County, Texas and more particularly described by metes and bounds as follows: (All bearings based on the Texas State Plane Coordinate System Central Zone. BEGINNING at a 1/2" rod found for the southeast comer of the said 5.96 acre tract, common to a point in the west line of 297.47 acre tract described in the deed from Waterstone Jean Baptiste, L.P. to WYA Villages of Messina, Ltd., recorded under Document No. 2007004725, in the Official Public Records of Williamson County, Texas, and common to the northeast comer of the residue of the 17.46 acre tract described in the deed from J.W. Small to West Texas Trading Retirement, Ltd. recorded under Vol. 2058, Pg. 119, in the Official Records of Williamson County, Texas. THENCE South 70°01'53" West, a distance of 457.08' with the south line of said 5.96 acre tract, common to the north line of said 17.46 acre tract to the point of curvature of a curve to the right, having a Delta Angle of 03°12'28", a radius of 5529.58, and from which point the radius bears North 71°58'10" East, in the east right-of-way line of US 183A as described in the deed from Gary G. Bonnet to Williamson County, Texas recorded under Document No. 2004090173, in the Official Public Records of Williamson County, Texas, from which a 1/2" iron rod with cap bears North 70°01 '53" East, a distance of 0.21'; THENCE along said curve to the right in a northerly direction, with the east right-of-way line of said US 183A, an arc distance of 309.57' to a 1/2" iron rod with cap set for the end of curve in the north line of said 5.96 acre tract, and in a line of the residue of a 372.54 acre tract described in the deed from Jean Baptiste, Ltd. to Waterstone Jean Baptiste, L.P. recorded under Document No. 2004099499 in the Official Public Records of Williamson County, Texas; THENCE North 69°30'19" East, a distance of 432.52', with the north line of said 5.96 acre tract, common to a line of said 372.54 acre tract to a 1/2" iron rod found for the northeast corner of the said 5.96 acre tract, common to an angle point in a west line of said 297.47 acre tract, from which a 1/2" iron rod found for an angle point of said 297.47 acre tract bears North 69°37' 11" East, a distance of 65.12'; THENCE South 20°57'58" East, a distance of 312.96', with the east line of said 5.96 acre tract, common to a west line of the said 297.47 acre tract, to the POINT OF BEGINNING of the herein described tract, and containing 3.185 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 8412.107, 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 the members elected to each house, Subchapter C, Chapter 8412, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8412.107 to read as follows: Sec. 8412.107. 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 Subsection (c), Section 17, 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 the 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, 2013. * * * * *