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                                                                  S.B. No. 1823




AN ACT
relating to the creation of the Schertz Municipal Utility District No. 1; providing authority to impose a tax and issue bonds; granting the 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 8128 to read as follows:
CHAPTER 8128. SCHERTZ MUNICIPAL UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8128.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "Director" means a member of the board. (3) "District" means the Schertz Municipal Utility District No. 1. Sec. 8128.002. NATURE OF DISTRICT. The district is a municipal utility district in Bexar County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Sec. 8128.003. CONFIRMATION ELECTION REQUIRED. If the creation of the district is not confirmed at a confirmation election held under Section 8128.022 before September 1, 2007: (1) the district is dissolved September 1, 2007, except that: (A) any debts incurred shall be paid; (B) any assets that remain after the payment of debts shall be transferred to the City of Schertz; 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, 2010. Sec. 8128.004. 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: (1) the organization, existence, or validity of the district; (2) the right of the district to impose taxes; or (3) the legality or operation of the board. Sec. 8128.005. APPLICABILITY OF OTHER LAW. Except as otherwise provided by this chapter, Chapters 30, 49, and 54, Water Code, apply to the district.
[Sections 8128.006-8128.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8128.021. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Bill K. Benton; (2) Gina L. Fann; (3) Christopher K. Price; (4) Barbara Boyer Simpson; and (5) Suzette M. Smith. (b) Temporary directors of the district are not required to own land in or be residents of the district. (c) If a temporary director fails to qualify for office, the temporary directors who have qualified shall appoint a person to fill the vacancy. If at any time there are fewer than three qualified temporary directors, the Texas Commission on Environmental Quality shall appoint the necessary number of persons to fill all vacancies on the board. (d) Temporary directors serve until the earlier of: (1) the date directors are elected under Section 8128.022; or (2) the date this chapter expires under Section 8128.003. Sec. 8128.022. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) The temporary directors shall hold an election to confirm the creation of the district and to elect five initial directors as provided by Section 49.102, Water Code. (b) At the confirmation and initial directors' election the board may submit to the voters a proposition to authorize: (1) an issuance of bonds; (2) a maintenance tax; or (3) a tax to fund payments required under a contract. (c) Section 41.001(a), Election Code, does not apply to a confirmation and initial directors' election held under this section. Sec. 8128.023. INITIAL ELECTED DIRECTORS; TERMS. The directors elected under Section 8128.022 shall draw lots to determine which two shall serve until the first regularly scheduled election of directors under Section 8128.052 and which three shall serve until the second regularly scheduled election of directors. Sec. 8128.024. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2010.
[Sections 8128.025-8128.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8128.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors. (b) Directors serve staggered four-year terms. Sec. 8128.052. ELECTION OF DIRECTORS. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected.
[Sections 8128.053-8128.100 reserved for expansion]
SUBCHAPTER C. DIVISION OF DISTRICT TO MULTIPLE DISTRICTS
Sec. 8128.101. DIVISION OF DISTRICT; REQUIREMENTS. (a) At any time before the district issues indebtedness secured by taxes or net revenues, the district, including any annexed territory, may be divided into two or more new districts. (b) A new district created by division of the district must be at least 100 acres. (c) The board by resolution may declare an intent to divide the district. The resolution must: (1) set the terms of the division, including a plan for the payment or performance of any outstanding district obligations; and (2) contain a metes and bounds description for each new district. Sec. 8128.102. DISTRICT DIVISION BY ELECTION. (a) The board shall hold an election in the district to determine whether the district should be divided as proposed under Section 8128.101. (b) The board shall give notice of the election not later than the 35th day before the date of the election. The notice must state: (1) the date and location of the election; and (2) the proposition to be voted on. (c) If a majority of the votes are cast in favor of the division, the district is divided. (d) If less than a majority of the votes are cast in favor of the division, the district may not be divided. (e) The resulting new districts are separate districts and shall be governed as separate districts. Sec. 8128.103. NOTICE OF DIVISION. Not later than the 30th day after the date of a division under this subchapter, the district shall provide written notice of the plan for division to: (1) the Texas Commission on Environmental Quality; (2) the attorney general; (3) the commissioners court of each county in which a new district is located; and (4) each municipality having extraterritorial jurisdiction over territory in a new district. Sec. 8128.104. DISTRICT NAMES FOLLOWING DIVISION. The resulting new districts are assigned consecutive letters to be appended to the name of the original district. Sec. 8128.105. ELECTION OF DIRECTORS OF NEW DISTRICTS. (a) Not later than the 90th day after the date of an election in favor of the division of the district, the board shall: (1) appoint itself as the board of one of the new districts; and (2) appoint five directors for each of the other new districts. (b) A director appointed under Subsection (a)(1) serves the term to which that director was elected in the original district. A director appointed under Subsection (a)(2): (1) serves until the election for directors under Subsection (c); and (2) is not required to own land in or reside in the district for which the director is appointed. (c) On the uniform election date in May of the first even-numbered year after the year in which the directors are appointed, an election shall be held to elect five directors in each district for which directors were appointed under Subsection (a)(2). Of the five directors elected in each district, the three directors receiving the greatest number of votes shall serve until the second regularly scheduled election of directors under Subsection (d), and the remaining two directors shall serve until the first regularly scheduled election of directors. (d) Except as provided by Subsection (c), directors serve staggered four-year terms. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected. Sec. 8128.106. CONTINUING POWERS AND OBLIGATIONS OF NEW DISTRICTS. (a) Each new district may incur and pay debts and has all powers of the original district created by this chapter. (b) If the district is divided as provided by this subchapter, the current obligations and any bond authorizations of the district are not impaired. Debts shall be paid by revenues or by taxes or assessments imposed on real property in the district as if the district had not been divided or by contributions from each new district as stated in the terms set by the board in the plan for division. (c) Any other district obligation shall be divided pro rata among the new districts on an acreage basis or on other terms that are satisfactory to the new districts. Sec. 8128.107. CONTRACT AUTHORITY OF NEW DISTRICTS. The new districts may contract with each other for: (1) water and wastewater services; or (2) any other matter the boards of the new districts consider appropriate. Sec. 8128.108. BOND ISSUANCE BY NEW DISTRICT. A new district may issue bonds payable wholly or partially from ad valorem taxes on the approval of a majority of the residents voting in an election called and held for that purpose. Sec. 8128.109. MAINTENANCE TAX APPROVAL FOR NEW DISTRICT. A new district may impose a maintenance tax on the approval of a majority of the residents voting in an election called and held for that purpose. SECTION 2. The Schertz Municipal Utility District No. 1 initially includes the territory contained within the following area: BEING 101.223 acres of land more or less situated in the Julian Diaz Survey No. 66, Abstract No. 187, County Block 5059, Bexar County, Texas, consisting of 78.951 acres of land more or less out of a called 145.776 acre tract as described in Volume 6300, Page 439 Official Public Records, Bexar County, Texas, and 22.272 acres of land more or less out of a called 52.539 acre tract as described in Volume 5491, Page 740 Official Public Records, Bexar County, Texas, and being more particularly described as follows: BEGINNING at a point for the North corner of said 145.776 acre tract and the North corner of this tract herein described, situated at the point of intersection of the southeast right-of-way of Lower Sequin Road with the southwest right-of-way of Trainer Hale Road (abandoned); Thence with the southwest right-of-way of Trainer Hale Road S30°16'00"E, 1214.52 feet to a point marking the intersection of the southwest right-of-way of Trainer Hale Road with the southwest right-of-way of F.M. Road 1518; THENCE with the southwest right-of-way of F.M. 1518, S30°16'000"E, 2715.35 feet to a point for the west corner of this tract and the east corner of said 145.776 acre tract; THENCE S59°54'31"W, 900.86 feet crossing the east corner of said 52.593 acre tract at 300.00 feet, to a point for a corner of this tract herein described on the southeast line of the above mentioned 52.593 acre tract; THENCE leaving the southeast line of said 52.593 acre tract and into said 52.593 acre tract N71°13'42"W, 350.07 feet to a point for a corner of this tract herein described; Thence N30°16'00"W, 3663.16 feet to a point on the southeast right-of-way of Lower Sequin Road; THENCE N59°45'15"E, 1130.14 feet to the Point of Beginning and containing 101.223 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 September 1, 2005.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1823 passed the Senate on May 10, 2005, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 27, 2005, by the following vote: Yeas 29, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1823 passed the House, with amendment, on May 25, 2005, by a non-record vote. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor