HB 5650 Introduced

Relating to the creation of the Travis County Municipal Utility District No. 40; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes. 

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A BILL TO BE ENTITLED

 

AN ACT

 

relating to the creation of the Travis County Municipal Utility

 

District No. 40; 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 8014A to read as follows:

 

CHAPTER 8014A. TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 40

 

SUBCHAPTER A. GENERAL PROVISIONS

 

       Sec. 8014A.0101.  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 Travis County Municipal

 

Utility District No. 40.

 

       Sec. 8014A.0102.  NATURE OF DISTRICT. The district is a

 

municipal utility district created under Section 59, Article XVI,

 

Texas Constitution.

 

       Sec. 8014A.0103.  CONFIRMATION AND DIRECTOR 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. 8014A.0104.  CONSENT OF MUNICIPALITY REQUIRED. The

 

temporary directors may not hold an election under Section

 

8014A.0103 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 as required by

 

general law.

 

       Sec. 8014A.0105.  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. 8014A.0106.  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. 8014A.0201.  GOVERNING BODY; TERMS. (a) The district

 

is governed by a board of five elected directors.

 

       (b)  Except as provided by Section 8014A.0202, directors

 

serve staggered four-year terms.

 

       Sec. 8014A.0202.  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 8014A.0103; 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 8014A.0103 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 8014A.0103; 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. 8014A.0301.  GENERAL POWERS AND DUTIES. The district

 

has the powers and duties necessary to accomplish the purposes for

 

which the district is created.

 

       Sec. 8014A.0302.  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. 8014A.0303.  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. 8014A.0304.  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. 8014A.0305.  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.

 

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

 

       Sec. 8014A.0401.  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

 

8014A.0403.

 

       (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. 8014A.0402.  OPERATION AND MAINTENANCE TAX. (a) If

 

authorized at an election held under Section 8014A.0401, 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. 8014A.0403.  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. 8014A.0501.  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. 8014A.0502.  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. 8014A.0503.  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 Travis County Municipal Utility District

 

No. 40 initially includes all the territory contained in the

 

following area:

 

       TRACT 1:

 

       Being 21.95 acres of land, more or less, out of the Augustus

 

Kincheloe Survey, Abstract No. 457, Travis County, Texas, being a

 

portion of that tract conveyed to Stermaster Properties, LLC, by

 

deed recorded in Document No. 2021100283, Official Public Records,

 

Travis County, Texas, as surveyed on the ground by Texas Land

 

Surveying, Inc. on June 15th, 2021, and further described by metes

 

and bounds as follows:

 

       BEGINNING at a 1/2 inch iron rod found in concrete in the

 

south line of FM 1327, marking the northeast corner of a tract

 

conveyed to Irma May A. Fernandez De Leon, by deed recorded in

 

Document No. 2018086771, of said Official Public Records, for the

 

northwest corner of said Stermaster tract and this tract;

 

       THENCE: N 73°42’42” E, 799.30 feet with the south line of said

 

FM 1327 and the north line of said Stermaster tract to a 1/2 inch

 

iron rod with pink cap stamped “TLS” set, for the northeast corner

 

of this tract, from which a 1/2 inch iron rod found in concrete,

 

marking the northwest corner of a tract conveyed to Clifford Gus

 

Graef, by deed recorded in Volume 7303, Page 323, Deed Records,

 

Travis County, Texas, also marking the northeast corner of said

 

Stermaster tract, bears N 73°42’42” E, 680.61 feet;

 

       THENCE: S 46°59’48” E, 1204.37 feet into and across said

 

Stermaster tract to a 1/2 inch iron rod with pink cap stamped “TLS”

 

set in the north line of a tract conveyed to Michelle Dimanoff, by

 

deed recorded in Document No. 2018193755, of said Official Public

 

Records and the south line of said Stermaster tract, for the

 

southeast corner of this tract, from which a 1/2 inch iron rod found

 

in the west line of said Graef tract, marking the northeast corner

 

of said Dimanoff tract, also marking the southeast corner of said

 

Stermaster tract, bears N 43°00’13” E, 588.93 feet;

 

       THENCE: S 43°00’13” W, 672.86 feet with the north line of said

 

Dimanoff tract and the south line of said Stermaster tract to a 1/2

 

inch iron rod with pink cap stamped “TLS” found in the north-south

 

running north line of Tom Sassman Road, marking the northwest

 

corner of said Dimanoff tract, for the southwest corner of said

 

Stermaster tract and this tract;

 

       THENCE: N 47°30’25” W, with the north-south running line of

 

said Tom Sassman Road and the west line of said Stermaster tract at

 

5.40 feet passing a 1/2 inch iron rod with orange cap stamped “Hayes

 

RPLS 5703” found, marking the southeast corner of Maha Creek

 

Estates, said plat recorded in Volume 86, Page 45B, Plat Records,

 

Travis County, Texas, continuing with the east line of said Maha

 

Creek Estates and the west line of said Stermaster tract at 721.47

 

feet passing a 1/2 inch iron rod with “Hayes RPLS 5703″ found,

 

continuing in part with the east line of said Maha Creek Estates and

 

with the east line of said Leon tract, and the west line of said

 

Stermaster tract in all 1612.61 feet to the Point of Beginning.

 

       TRACT 2:

 

       BEING 20.79 ACRES OF LAND OUT OF THE AUGUSTUS KINCHELOE

 

SURVEY NUMBER 2, ABSTRACT NUMBER 457, TRAVIS COUNTY, TEXAS, SAME

 

BEING ALL OF THAT CERTAIN J.M.T.C.V., LTD 21.9716 ACRE TRACT

 

RECORDED IN DOCUMENT NUMBER 2005046836, OFFICIAL PUBLIC RECORDS,

 

TRAVIS COUNTY, TEXAS, SAVE AND EXCEPT THAT CERTAIN 0.608 ACRE TRACT

 

AND THAT CERTAIN 0.575 ACRE TRACT, BOTH RECORDED IN DOCUMENT

 

NUMBERS, 2014186864, 2015054419 AND 2015059567, ALL OF THE OFFICIAL

 

PUBLIC RECORDS, TRAVIS COUNTY, TEXAS, SAID 20.79 ACRES OF LAND TO BE

 

MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

       BEGINNING at an iron rod in the westerly line of that certain

 

Clifford Graef 13.6310 acre tract recorded in Volume 5029, Page

 

107, Deed Records, said county, at the southeast corner of that

 

certain Arlon Wayne Graef 35.87 acre tract recorded in Document

 

Number 2016180663, Official Public Records, said county, same being

 

the northwest corner of said 21.9716 acre tract, for the northwest

 

corner hereof;

 

       THENCE South 47 degrees 07 minutes 44 seconds East, along the

 

westerly line of said 13.6310 acre tract and the northerly line of

 

said 21.9716 acre tract, 549.33 feet to an iron rod found in said

 

line, at the northwest corner of said 0.608 acre tract, for an angle

 

corner in the northerly line hereof;

 

       THENCE through said 21.9716 acre tract, along the westerly,

 

southerly and easterly line of said 0.608 acre tract, the following

 

3 calls,

 

       1.  South 66 degrees 24 minutes 26 seconds West, 209.37 feet

 

to an iron rod found,

 

       2.  South 26 degrees 19 minutes 46 seconds East, 160.66 feet

 

to an iron rod found,

 

       3.  North 48 degrees 22 minutes 41 seconds East, 196.16 feet

 

to an iron rod found in the westerly right-of-way line of S. U.S.

 

Highway 183, at the northeast corner of said 0.608 acre tract, same

 

being in the northerly line of said 21.9716 acre tract, for an angle

 

corner in the northerly line hereof;

 

       THENCE South 04 degrees 15 minutes 32 seconds East, along

 

said Highway 183 and the northerly line of said 21.9716 acre tract,

 

111.11 feet to an iron rod found at the intersection of said Highway

 

183 and the westerly right-of-way line of Tom Sassman Road, same

 

being the northeast corner of said 21.9716 acre tract, for the

 

northeast corner hereof;

 

       THENCE South 18 degrees 20 minutes 06 seconds West, along

 

said Tom Sassman Road and the easterly line of said 21.9716 acre

 

tract, 104.45 feet to an iron rod found in said line, at the

 

northwest corner of said 0.575 acre tract, for an angle corner in

 

the easterly line hereof;

 

       THENCE through said 21.9716 acre tract, along the westerly

 

and southerly line of said 0.575 acre tract, the following 6 calls,

 

       1.  South 41 degrees 52 minutes 26 seconds West, 245.18 feet

 

to an iron rod found,

 

       2.  North 48 degrees 16 minutes 41 seconds West, 67.75 feet

 

to an iron rod found,

 

       3.  South 70 degrees 17 minutes 52 seconds West, 150.75 feet

 

to an iron rod found,

 

       4.  South 14 degrees 29 minutes 15 seconds East, 100.37 feet

 

to an iron rod found,

 

       5.  North 70 degrees 13 minutes 40 seconds East, 85.37 feet

 

to an iron rod found,

 

       6.  South 47 degrees 46 minutes 18 seconds East, 39.04 feet

 

to an iron rod found in said right-of-way line, at the southeast

 

corner of said 0.575 acre tract, same being in the easterly line of

 

said 21.9716 acre tract, for an angle corner in the easterly line

 

hereof;

 

       Thence continuing along said right-of-way line and the

 

easterly and southerly line of said 21.9716 acre tract, the

 

following 4 calls,

 

       1.  South 42 degrees 34 minutes 47 seconds West, 598.66 feet

 

to an iron rod found,

 

       2.  South 60 degrees 42 minutes 46 seconds West, 26.42 feet

 

to an iron rod set,

 

       3.  South 89 degrees 54 minutes 48 seconds West, 18.83 feet

 

to an iron rod found at the southeast corner of said 21.9716 acre

 

tract, for the southeast corner hereof,

 

       4.  North 50 degrees 17 minutes 01 seconds West, 774.74 feet

 

to a fence corner post found at the northeast corner of Maha Creek

 

Estates, a subdivision recorded in Volume 86, Page 45C, Plat

 

Records, said county, at the southeast corner of said 35.87 acre

 

tract, same being the southwest corner of said 21.9716 acre tract,

 

for the southwest corner hereof;

 

       THENCE North 43 degrees 00 minutes 22 seconds East, along the

 

easterly line of said 35.87 acre tract and the westerly line of said

 

21.9716 acre tract, 1,261.79 feet to the POINT OF BEGINNING.

 

       TRACT 3:

 

       Being 13.88 acres of land, more or less, out of the Augustus

 

Kincheloe Survey, Abstract No. 457, Travis County, Texas, being a

 

portion of that tract conveyed to Stermaster Properties, LLC, by

 

deed recorded in Document No. 2021100283, Official Public Records,

 

Travis County, Texas, as surveyed on the ground by Texas Land

 

Surveying, Inc. on June 15th, 2021, and further described by metes

 

and bounds as follows:

 

       BEGINNING at a 1/2 inch iron rod found in concrete in the

 

south line of FM 1327, marking the northwest corner of a tract

 

conveyed to Clifford Gus Graef, by deed recorded in Volume 7303,

 

Page 323, of said Deed Records, for the northeast corner of said

 

Stermaster tract and this tract, from which a concrete monument

 

found, marking the northeast corner of said Graef tract, bears N

 

73°43’54” E, 806.93 feet;

 

       THENCE: S 47°14’51” E, 856.82 feet with the west line of said

 

Graef tract and the east line of said Stermaster tract to a 1/2 inch

 

iron rod found, marking the northeast corner of a tract conveyed to

 

Michelle Dimanoff, by deed recorded in Document No. 2018193755, of

 

said Official Public Records, for the southeast corner of said

 

Stermaster tract and this tract, from which a 1/2 inch iron rod with

 

aluminum cap stamped “TxDOT” found, marking the southwest corner of

 

said Graef tract, also marking an angle point of said Dimanoff

 

tract, bears S 47°08’02” E, 549.50 feet;

 

       THENCE: S 43°00’13” W, 588.93 feet with the north line of said

 

Dimanoff tract and the south line of said Stermaster tract to a 1/2

 

inch iron rod with pink cap stamped “TLS” set, for the southwest

 

corner of this tract, from which a 1/2 inch iron rod with pink cap

 

stamped “TLS” found in the north-south running north line of Tom

 

Sassman Road, marking the northwest corner of said Dimanoff tract,

 

also marking the southwest corner of said Stermaster tract, bears S

 

43°00’13” W, 672.86 feet;

 

       THENCE: N 46°59’48” W, 1204.37 feet into and across said

 

Stermaster tract to a 1/2 inch iron rod with pink cap stamped “TLS”

 

set in the south line of said FM 1327, for the northwest corner of

 

this tract, from which a 1/2 inch iron rod found in concrete,

 

marking the northeast corner of a tract conveyed to Irma May A.

 

Fernandez De Leon, by deed recorded in Document No. 2018086771, of

 

said Official Public Records, also marking the northwest corner of

 

said Stermaster tract, bears N 73°42’42” E, 799.30 feet;

 

       THENCE: N 73°42’42” E, 680.61 feet with the south line of said

 

FM 1327 and the north line of said Schaarschmidt tract to the Point

 

of Beginning.

 

       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

 

8014A, Special District Local Laws Code, as added by Section 1 of

 

this Act, is amended by adding Section 8014A.0306 to read as

 

follows:

 

       Sec. 8014A.0306.  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 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, 2025. 

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