H.B. No. 4309
AN ACT
relating to the creation of the Driftwood Municipal Utility
District No. 1; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
assessments, fees, and taxes.
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 7983 to read as follows:
CHAPTER 7983. DRIFTWOOD MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7983.001. 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 Driftwood Municipal Utility
District No. 1.
Sec. 7983.002. NATURE OF DISTRICT. The district is a
municipal utility district created under Section 59, Article XVI,
Texas Constitution.
Sec. 7983.003. 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. 7983.004. CONSENT OF MUNICIPALITY REQUIRED. The
temporary directors may not hold an election under Section 7983.003
until:
(1) 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; and
(2) the district and each municipality in whose
corporate limits or extraterritorial jurisdiction the district is
located have executed an agreement concerning the creation and
operation of the district.
Sec. 7983.005. 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.
(c) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(d) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment;
(3) developing or expanding transportation and
commerce; and
(4) providing quality residential housing.
(e) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a residential community and business
center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping,
removing graffiti from, and developing certain areas in the
district, which are necessary for the restoration, preservation,
and enhancement of scenic beauty.
(f) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, vehicle parking, and street art objects are parts of
and necessary components of a street and are considered to be an
improvement project that includes a street or road improvement.
Sec. 7983.006. 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.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7983.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 7983.052, directors serve
staggered four-year terms.
Sec. 7983.052. TEMPORARY DIRECTORS. (a) On or after
September 1, 2017, 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 7983.003; or
(2) September 1, 2021.
(c) If permanent directors have not been elected under
Section 7983.003 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 7983.003; 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.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7983.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 7983.102. 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. 7983.103. WATER CONSERVATION FACILITIES. The district
may provide for the conservation of water, including by means of the
construction, operation, and maintenance of a water conservation
facility or water reuse project.
Sec. 7983.104. 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. 7983.105. 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. 7983.106. 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. 7983.107. LIMITATION ON GROUNDWATER USE. In providing
water services to users in the district, the district may not,
except in emergency situations:
(1) develop groundwater on land owned by the district
for use as a potable water source; or
(2) purchase or lease the rights to groundwater
underlying land inside the district for use as a potable water
source.
Sec. 7983.108. DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if:
(1) the district has no outstanding bonded debt; and
(2) the district is not imposing ad valorem taxes.
(b) This chapter applies to any new district created by the
division of the district, and a new district has all the powers and
duties of the district.
(c) Any new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act enacting this
chapter.
(d) The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value of
the real property in the district, may adopt an order dividing the
district.
(e) The board may adopt an order dividing the district
before or after the date the board holds an election under Section
7983.003 to confirm the creation of the district.
(f) An order dividing the district shall:
(1) name each new district;
(2) include the metes and bounds description of the
territory of each new district;
(3) appoint temporary directors for each new district;
and
(4) provide for the division of assets and liabilities
between or among the new districts.
(g) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the commission and record the order in the real property
records of each county in which the district is located.
(h) Any new district created by the division of the district
shall hold a confirmation and directors' election as required by
Section 7983.003.
(i) If the creation of the new district is confirmed, the
new district shall provide the election date and results to the
commission.
(j) Any new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 7983.151. 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 7983.153.
(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. 7983.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 7983.151, 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. 7983.153. 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.
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 7983.201. 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. 7983.202. 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. 7983.203. 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 Driftwood Municipal Utility District No. 1
initially includes all the territory contained in the following
area:
FIELD NOTE DESCRIPTION OF 323.59 ACRES OF LAND OUT OF THE WILLIAM B.
TRAVIS SURVEY ABSTRACT No. 15 IN HAYS COUNTY, TEXAS, BEING
COMPRISED OF A PORTION OF THAT CERTAIN (117.51 ACRE) TRACT OF LAND
AS CONVEYED TO DAMIAN C. MANDOLA AND TRINA M. MANDOLA BY GENERAL
WARRANTY DEED RECORDED IN VOLUME 2406 PAGE 685 OF THE OFFICIAL
PUBLIC RECORDS OF HAYS COUNTY, TEXAS, TOGETHER WITH A PORTION OF
THAT CERTAIN (150.00 ACRE) TRACT OF LAND AS CONVEYED TO DAMIAN C.
MANDOLA AND TRINA M. MANDOLA BY WARRANTY DEED RECORDED IN VOLUME
2261 PAGE 316 OF THE OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS,
AND TOGETHER WITH A PORTION OF THAT CERTAIN (107.00 ACRE) TRACT OF
LAND AS CONVEYED TO DAMIAN C. MANDOLA AND WIFE, TRINA M. MANDOLA BY
GENERAL WARRANTY DEED RECORDED IN VOLUME 2141 PAGE 753 OF THE
OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS, AND BEING MORE
PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING at a point in the East right-of-way line of F.M. Highway
No. 150 for the westerly Northwest corner of that certain (117.51
acre) tract of land as conveyed to Damian C. Mandola and Trina M.
Mandola by General Warranty Deed recorded in Volume 2406 Page 685 of
the Official Public Records of Hays County, Texas, and being in the
West line of that certain (890.32 acres less 90.96 acres) tract as
conveyed to Wilding, LP by Special Warranty Deed recorded in
Document No. 9927839 of the Official Public Records of Hays County,
Texas, and for the Northwesterly corner of that certain (374.53
acre) tract of land as conveyed to Saber Ventures, L.P. by Special
Warranty Deed recorded in Volume 2023 Page 531 of the Official
Public Records of Hays County, Texas, and for a Southwesterly
corner of that certain (311.44 acre) tract of land as conveyed to AT
Holding-Riata, LLC by Special Warranty Deed recorded in Volume 2023
Page 547 of the Official Public Records of Hays County, Texas, and
being the westerly Northwest corner and PLACE OF BEGINNING of the
herein described tract of land, and from which a metal spike found
in an asphalt driveway in the East right-of-way line of F.M. Highway
No. 150 (at record centerline HWY Station 398+69.3) bears N 20 deg.
32' 24" W 895.92 ft., and also from which a capped iron rod found
bears N 72 deg. 35' 16" E 0.40 ft.;
THENCE leaving the East right-of-way line of F.M. Highway No. 150
and entering the interior of said Wilding (890.32 acres less 90.96
acres) tract with the common line of said Mandola (117.51 acre)
tract and said AT-Holding-Riata (311.44 acre) tract, the following
four (4) courses;
1) N 72 deg. 35' 16" E 957.58 ft. to a capped iron rod found
(marked "McAngus");
2) N 28 deg. 14' 58" E 1033.24 ft. to a capped iron rod found
(marked "McAngus");
3) N 88 deg. 23' 37" E 3991.58 ft. to a capped iron rod found
(marked "McAngus");
4) S 53 deg 02' 43" E at 1953.44 ft. passing a 1 1/4" iron
pipe found, and continuing with the same bearing for a
total distance of 2042.29 ft. to a point in the
approximate centerline of Onion Creek for the Northeast
corner of said Mandola (117.51 acre) tract and for the
Southeast corner of said AT Holding-Riata (311.44 acre)
tract and for the Northwest corner of that certain
(200.585 acre) tract of land as conveyed to Annaton Land
Company, LLC by Warranty Deed recorded in Volume 4617
Page 374 of the Official Public Records of Hays County,
Texas, and being the Northeast corner of this tract of
land;
THENCE continuing through the interior of said Wilding (890.32
acres less 90.96 acres) tract with the approximate centerline of
Onion Creek and with the common line of said Mandola (117.51 acre)
tract and said Annaton Land Company (200.585 acre) tract, the
following seven (7) courses;
1) S 36 deg. 24' 12" W 252.79 ft.;
2) S 37 deg. 15' 21" W246.91 ft.;
3) S 41 deg. 42' 31" W 214.94 ft.;
4) S 43 deg. 07' 44" W 212.80 ft.;
5) S 26 deg. 54' 25" W 159.79 ft.;
6) S 27 deg. 42' 48" E 70.19 ft.;
7) S 49 deg. 40' 44" W 239.29 ft. to a point for the
Southeast corner of said Mandola (117.51 acre) tract
and for the Northeast corner of that certain (150.00
acre) tract of land as conveyed to Damian C. Mandola and
Trina C. Mandola by Warranty Deed recorded in Volume
2261 Page 316 of the Official Public Records of Hays
County, Texas, and being an angle corner of this tract,
and from which a 60D nail found on the Northwesterly
side of a 46" Cypress tree (for reference) bears N 85
deg. 04' W 47.70 ft.;
THENCE continuing through the interior of said Wilding (890.32
acres less 90.96 acres) tract with the approximate centerline of
Onion Creek and with the common line of said Mandola (150.00 acre)
tract and said Annaton Land Company (200.585 acre) tract, the
following six (6) courses;
1) S 47 deg. 12' 31" W 253.25 ft.;
2) S 41 deg. 34' 36" W 219.86 ft.;
3) S 41 deg. 33' 07" W 276.42 ft.;
4) S 45 deg. 46' 37" W 288.13 ft.;
5) S 61 deg. 07' 53" W 223.76 ft.;
6) S 58 deg. 51' 17" W 191.85 ft. to a point for the Southeast
corner of said Mandola (150.00 acre) tract and for the
Northeast corner of that certain (107.00 acre) tract of
land as conveyed to Damian C. Mandola and wife, Trina C.
Mandola by General Warranty Deed recorded in Volume
2141 Page 753 of the Official Public Records of Hays
County, Texas, and being an angle corner of this tract,
and from which a 60D nail found on the Westerly side of a
16" Cypress tree bears N 13 deg. 48' W 53.69 ft.;
THENCE continuing through the interior of said Wilding (890.32
acres less 90.96 acres) tract with the approximate centerline of
Onion Creek and with the East line of said Mandola (107.00 acre)
tract, the following five (5) courses;
1) S 41 deg. 08' 03" W 231.01 ft.;
2) S 36 deg. 08' 40" W 248.29 ft.;
3) S 32 deg. 53' 55" W 249.13 ft.;
4) S 30 deg. 05' 08" W 241.12 ft.;
5) S 18 deg. 56' 06" W 233.53 ft. to a point for the Southeast
corner of said Mandola (107.00 acre) tract and for a
Northeasterly corner of that certain (21.512 acre)
tract of land as conveyed to Peter M. Schwab and
Jeanette K. Thornton-Schwab by General Warranty Deed
recorded in Volume 1828 Page 709 of the Official Public
Records of Hays County, Texas, and being the Southeast
corner of this tract, and from which an incised X mark
found in the Westerly end of a concrete dam bears N 09
deg. 00' E 190.41 ft. (for reference);
THENCE leaving the approximate centerline of Onion Creek with the
common line of said Mandola (107.00 acre) tract and said Schwab
(21.512 acre) tract, the following seven (7) courses;
1) N 58 deg. 07' 33" W at 70.67 ft. passing a capped iron rod
found (marked "McAngus") and continuing with the same
bearing for a total distance of 728.64 ft. to a capped
iron rod found (marked "McAngus");
2) N 24 deg. 01' 46" W 456.82 ft. to a capped iron rod found
(marked "McAngus") and from which a 1/2" iron rod found
for an angle corner in the Southwest line of said Schwab
(21.512 acre) tract bears S 46 deg. 21' 25" W 33.18 ft.;
3) N 56 deg. 29' 49" W 518.51 ft. to a capped iron rod found
(marked "McAngus");
4) N 36 deg. 40' 03" W 507.04 ft. to a capped iron rod found
(marked "McAngus");
5) S 56 deg. 30' 23" W 148.91 ft. to a capped iron rod found
(marked "McAngus");
6) N 42 deg. 04' 50" W 1026.81 ft. to a capped iron rod found
(marked "McAngus") on the top of a small earthen stock
tank dam;
7) N 84 deg. 13' 38" W 166.65 to a capped iron rod found
(marked "Landesign") at a metal pipe corner post for a
game-proof fence for the Southeast corner of that
certain (9.455 acre) tract of land as conveyed to
DuchMandola, Ltd. by General Warranty Deed recorded in
Volume 3775 Page 877 of the Official Public Records of
Hays County, Texas, and being a Southwesterly angle
corner of this tract;
THENCE entering the interior of said Mandola (107.00 acre) tract
with the East line of said DuchMandola (9.455 acre) tract, the
following two (2) courses;
1) N 16 deg. 59' 17" E 432.02 ft. to a 1/2" iron rod found;
2) S 53 deg. 46' 28" E 67.80 ft. to a capped iron rod found
(marked "Landesign");
THENCE continuing through the interior of said Mandola (107.00
acre) tract and entering the interior of said Mandola (150.00 acre)
tract, N 38 deg. 11' 23" E 284.33 ft. to a capped iron rod found
(marked "Landesign") for an angle corner in the East line of that
certain (6.620 acre) tract of land as conveyed to DuchMandola, Ltd.
by said General Warranty Deed recorded in Volume 3775 Page 877 of
the Official Public Records of Hays County, Texas, and being an
angle corner of this tract;
THENCE continuing through the interior of said Mandola (150.00
acre) tract, N 00 deg. 40' 32" W at 433.25 ft. passing a capped iron
rod found (marked "Landesign") for the Northeast corner of said
DuchMandola (6.620 acre) tract and continuing with the same bearing
for a total distance of 819.70 ft. to a capped iron rod found
(marked "Landesign") in the common line of said Mandola (150.00
acre) tract and said Mandola (117.51 acre) tract and being an angle
corner of this tract;
THENCE with the common line of said Mandola (150.00 acre) tract and
said Mandola (117.51 acre) tract, the following two (2) courses;
1) S 88 deg. 25' 14" W 642.66 ft. to a capped iron rod found
(marked "McAngus");
2) S 50 deg. 02' 26" W 895.46 ft. to a capped iron rod found
(marked "Landesign") for an angle corner of this tract,
and from which a 1/2" iron rod found for an angle corner
in the common line of said Mandola (150.00 acre) tract
and said Mandola (117.51 acre) tract bears S 50 deg. 02'
26" W 17.37 ft.;
THENCE crossing the interiors of said Mandola (117.51 acre) tract
and said Mandola (150.00 acre) tract, respectively, the following
two (2) courses;
1) 69 deg. 55' 31" W 590.01 ft. to a capped iron rod found
(marked "Landesign");
2) S 75 deg. 45' 29" W 370.85 ft. to a point in the East
right-of-way line of F.M. Highway No. 150 for the
Northwest corner of said Mandola (150.00 acre) tract
and for the Southwest corner of said Mandola (117.51
acre) tract and being the most Southwesterly corner of
this tract, and from which a concrete monument found in
the East right-of-way line of F.M. Highway No. 150 (at
centerline HWY Station 438+31.0) bears S 20 deg. 32' 24"
E 2810.55 ft., and also from which a 1/2" iron rod found
bears N 75 deg. 45' 29" E 0.41 ft.;
THENCE with the East right-of-way line of F.M. Highway No. 150 and
with the West line of said Mandola (117.51 acre) tract, N 20 deg.
32' 24" W 254.11 ft. to the PLACE OF BEGINNING, containing 323.59
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) If this Act does not receive a two-thirds
vote of all the members elected to each house, Subchapter C, Chapter
7983, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7983.109 to read as follows:
Sec. 7983.109. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4309 was passed by the House on May
19, 2017, by the following vote: Yeas 137, Nays 7, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4309 was passed by the Senate on May
24, 2017, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor