S.B. No. 1877

	AN ACT
	relating to the creation of the Oatman Hill Municipal Utility
	District; 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 8327 to read as follows:
	CHAPTER 8327.  OATMAN HILL MUNICIPAL UTILITY DISTRICT
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 8327.001.  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 Oatman Hill Municipal Utility
	District.
	Sec. 8327.002.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 8327.003.  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. 8327.004.  CONSENT OF MUNICIPALITY REQUIRED. The
	temporary directors may not hold an election under Section 8327.003
	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. 8327.005.  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, or improvement of
	macadamized, graveled, or paved roads described by Section 54.234,
	Water Code, or improvements, including storm drainage, in aid of
	those roads.
	Sec. 8327.006.  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 within each tract as
	described.  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 8327.007-8327.050 reserved for expansion]
	SUBCHAPTER B.  BOARD OF DIRECTORS
	Sec. 8327.051.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five elected directors.
	(b)  Except as provided by Section 8327.052, directors serve
	staggered four-year terms.
	Sec. 8327.052.  TEMPORARY DIRECTORS.  (a)  On or after
	September 1, 2011, 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 8327.003; or
	(2)  September 1, 2015.
	(c)  If permanent directors have not been elected under
	Section 8327.003 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 8327.003; 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 8327.053-8327.100 reserved for expansion]
	SUBCHAPTER C.  POWERS AND DUTIES
	Sec. 8327.101.  GENERAL POWERS AND DUTIES.  The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 8327.102.  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. 8327.103.  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. 8327.104.  APPROVAL OF ROAD PROJECT.  (a)  The district
	may not undertake a road project authorized by Section 8327.103
	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. 8327.105.  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. 8327.106.  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 8327.103; or
	(2)  a recreational facility as defined by Section
	49.462, Water Code.
	[Sections 8327.107-8327.150 reserved for expansion]
	SUBCHAPTER  D.  GENERAL FINANCIAL PROVISIONS
	Sec. 8327.151.  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 8327.153.
	(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. 8327.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 8327.151, 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. 8327.153.  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 8327.154-8327.200 reserved for expansion]
	SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
	Sec. 8327.201.  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. 8327.202.  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. 8327.203.  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 Oatman Hill Municipal Utility District
	initially includes all the territory contained in the following
	area:
	TRACT 1: 630.72 acres out of the John B. Oatman Farm Subdivision,
	recorded in Book 2, Page 234, Travis County Deed Records, and in
	Volume 41, Page 641, Caldwell County Deed Records out of James S.
	Montgomery League, described as follows:
	BEGINNING at a stone monument two and one-half feet high marked
	T.B.C. locating the common corner of Travis, Bastrop and Caldwell
	Counties for the North corner of a 281.9 acre tract owned by
	Granville H. Bock and the East corner of the tract herein described;
	THENCE with the Granville Bock Northwest line South 44˚ 40' West
	1311.5 varas to an iron stake and pile of rocks set for the West
	corner of the Granville Bock 281.9 acre tract and the South corner
	of this tract;
	THENCE North 45˚ 15' West 2686.7 varas to an iron stake and rock
	mound on the Southeast line of the public lane as fenced (1935);
	THENCE with the lane fence North 43˚ 40' East 265 varas to a post and
	rock mound;
	THENCE with the line fence North 44˚ 25' East 968.7 varas to a post
	and rock mound;
	THENCE with the Southeast side of the public road as fenced North
	45˚ 15' East 81.4 varas to an iron pin, post and rock mound set on
	the North corner of the tract herein described and as enclosed by
	fence (1935);
	THENCE with the fence and Southwest side of the public road South
	45˚ 05' East 215 varas to a post and rock mound;
	THENCE with the fence and Southwest side of the public road South
	45˚ 40' East 275.9 varas to a post and rock mound;
	THENCE with the Southwest side of the road South 46˚ 10' East 600.09
	varas to an iron stake;
	THENCE with the Southwest side of the road South 40˚ 10' East 173.3
	varas to an iron stake and rock mound;
	THENCE with the Southwest side of the country road South 44˚ 50'
	East 1431.5 varas to the place of BEGINNING, containing 626.27
	acres of land.
	TRACT II: 614 acres being more particularly described as follows:
	65 acres out of Lot 6 of Andrew Hamilton's Subdivision of 998 acres,
	recorded in Volume 204, Page 260, of the Travis County Deed Records,
	out of League 5, A.M. Leavy League, described as follows:
	BEGINNING at the South corner of 217 acres of land conveyed to W.E.
	Jamar by Ida L. Mask by deed dated November 23, 1909, recorded in
	Volume 238, Pages 287-289, Deed Records of Travis County, Texas;
	THENCE with the division line between Lot No. 6 and Lot No. 3, North
	45˚ East 1447 varas to a stake set on the Northeast boundary of said
	Leavy League and the Eastern corner of Lot No. 6;
	THENCE North 48˚ 50' West with the Northeast boundary line of said
	league 254.1 varas to a stake set for the North corner of this
	tract;
	THENCE South 45˚ West 1430.0 varas to a stake set for the West
	corner of this tract;
	THENCE South 45˚ East 253.53 varas to the place of BEGINNING,
	containing 65 acres.
	Lot No. 3, of the Andrew Hamilton Subdivision of 998 acres out of
	said A.M. Leavy League according to plat recorded in Volume 204,
	Page 260 Travis County Deed Records, being League 5, described as
	follows:
	BEGINNING at a post set on the dividing line between Caldwell and
	Travis Counties, Texas, for the West corner of Lot No. 2, and the
	most South corner of this Lot;
	THENCE North 45˚ East with the county line 1474 varas to the most
	North corner of Lot 2 a large stone on the county line and common
	corner of Lots 2 and 3;
	THENCE North 48˚ West 522 varas to a post for corner the common
	corner of Lots 3 and 6;
	THENCE South 45˚ West 1446.7 varas to a post set for the most West
	corner of this Survey and the common corner of Lots 3, 4, 5 and 6;
	THENCE South 45˚ East 522 varas to the place of BEGINNING,
	containing 135 acres.
	A part of Lot 2 of Andrew Hamilton's Subdivision of 998 acres,
	recorded in Volume 204, Page 260, of the Travis County Deed Records,
	out of League 5 A.M. Leavy League, described as follows:
	BEGINNING at a stake in the county line dividing the counties of
	Travis and Caldwell and at the most North corner of a 100 acre tract
	a part of said Lot 2 sold and conveyed by Andrew Hamilton and wife,
	Barbara Hamilton to Otto E. Ehrlich.
	THENCE with said county line same being the division line between
	Lots 2 and 3 of said subdivision North 45˚ 00' East 788 varas to a
	large stone in the Northeastern line of said Leavy League the common
	corner of said Lots 2 and 3;
	THENCE with said League line South 45˚ 50' East 810 varas to a stake
	and corner of said Lot 2 in line of new road;
	THENCE with said road South 45˚ West 799.78 varas to a stake in same
	and most East corner of said Otto Ehrlich 100 acre tract;
	THENCE with line of same North 45˚ West 809.91 varas to the place of
	BEGINNING, containing 114 acres, more or less.
	300 acres, out of League 5, A.M. Leavy being all of Blocks 15, 15A,
	16, 16A, 17 and 17A of the resurvey and subdivision of the Bunton
	Pasture of the A.M. Leavy League, according to plat recorded in
	Volume 27, Page 644, Caldwell County Deed Records, described as
	follows:
	BEGINNING at the NE corner of the 122 acre tract sold by R.L. Brown
	to Fritz Awalt, being Block 10 which is also the SE corner of Block
	17 of the subdivision of the Bunton Pasture;
	THENCE N 45˚ West 856 varas to the NE corner of Block 17A;
	THENCE S 45˚ W 1978 varas to the NE corner of Block 14A;
	THENCE S 45˚ E 856 varas to common line of corner of Blocks 12, 13,
	14, and 15 of the Subdivision of the Bunton Pasture;
	THENCE N 45˚ E 1978 varas to the place of BEGINNING, and being the
	same land conveyed by R.L. Brown to A.M. Cardwell by deed dated
	September 30, 1899, recorded in Volume 24, Page 314, Caldwell
	County Deed Records.
	TRACT III: Field Notes for a 99.542 acres tract of land being Lot
	No. 7 of the Eggleston Goldbeck and Seeling Subdivision of the Jacob
	Betts survey as recorded in Plat Book 1, Page 110 of the Plat
	Records of Travis County, Texas; said tract being more particularly
	described by metes and bounds as follows:
	BEGINNING at a concrete monument found in the East right-of-way
	line of Maha Road said concrete monument also being at the most
	southerly corner of the herein described tract;
	THENCE with the East right-of-way line of Maha Road N 40˚ 52' W a
	distance of 387.92 feet to a concrete monument found at an angle
	point;
	THENCE continuing with the East right-of-way line of Maha Road N 45˚
	40' 12" W a distance of 1282.28 feet to a concrete monument found at
	the most westerly corner of the herein described tract;
	THENCE leaving the east right-of-way line of Maha Road N 45˚ 10' 42"
	E a distance of 2593.54 feet to a concrete monument found at the
	most northerly corner of the herein described tract;
	THENCE S 44˚ 44' 00" E a distance of 1698.50 feet to a concrete
	monument found at the most easterly corner of the herein described
	tract;
	THENCE S 46˚ 20' 11" W a distance of 1261.23 feet to a concrete
	monument found at an angle point;
	THENCE S 45˚ 20' 23" W a distance of 1337.70 feet to the POINT OF
	BEGINNING containing in all about 99.542 acres.
	TRACT IV: Field notes for two adjacent tracts of land, Tract No. 1
	containing 20.508 acres and Tract No. 2 containing 20.487 acres for
	a total of 40.995 acres of land lying within and being part of the
	Edward Gritton one fourth league in Travis County, Texas, and being
	a part of that certain one hundred (100) acre tract conveyed by W.E.
	Jamar and wife Maude Jamar, to Otto Dube by warranty deed of record
	in Vol. 254, Page 226 of the Travis County deed records; said tracts
	being more particularly described by metes and bounds as follows:
	TRACT IVa: BEGINNING at a steel pin found in the East right-of-way
	line of Maha Road, said pin also being at the most westerly corner
	of Tract No. 1 and the most southerly corner of Tract No. 2
	described below:
	THENCE leaving the right-of-way line of Maha Road and proceeding
	along the line common to Tract No. 1 and Tract No. 2 N 45˚ 00' 25" E a
	distance of 1724.03 feet to a steel pin found at the most northerly
	corner of Tract No. 1 and the most easterly corner of Tract No. 2
	described below:
	THENCE S 44˚ 55' 47" E a distance of 518.11 feet to a steel pin set
	for the most easterly corner of Tract No. 1;
	THENCE S 45˚ 00' 24" W (S45˚ 00' W Record) a distance of 1724.41 feet
	to a steel pin set in the East right-of-way line of Maha Road at the
	most southerly corner of Tract No. 1;
	THENCE with the East right-of-way line of Maha Road N 44˚ 53' 09" W a
	distance of 518.13 feet to the POINT OF BEGINNING containing in all
	about 20.508 acres.
	TRACT IVb: BEGINNING at a steel pin found in the East right-of-way
	line of Maha Road, said pin also being at the most southerly corner
	of Tract No. 2 and the most westerly corner of the above described
	Tract 1:
	THENCE with the East right-of-way line of Maha Road N 44˚ 47' 42" W
	a distance of 279.95 feet ot a steel pin found at the most westerly
	corner of Tract No. 2;
	THENCE leaving the East right-of-way line of Maha Road N 44˚ 43' 46"
	E a distance of 884.41 feet to a steel pin found at an interior
	corner of Tract No. 2;
	THENCE N 44˚ 52' 07" W a distance of 478.83 feet to a steel pin found
	at the most northerly West corner of Tract No. 2;
	THENCE N 44˚ 32' 50" E a distance of 838.37 feet to a steel pin found
	at the most northerly corner of Tract No. 2;
	THENCE S 44˚ 56' 22" E a distance of 769.79 feet to a steel pin found
	at the most easterly corner of Tract No. 2 and the most northerly
	corner of Tract No. 1 described above;
	THENCE along the line common to Tract No. 1 and Tract No. 2 S 45˚ 00'
	25" W a distance of 1724.03 feet to the POINT OF BEGINNING
	containing in all about 20.487 acres.
	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 8327.106, 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 the
	members elected to each house, Subchapter C, Chapter 8327, Special
	District Local Laws Code, as added by Section 1 of this Act, is
	amended by adding Section 8327.106 to read as follows:
	Sec. 8327.106.  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 17(c),
	Article I, Texas Constitution.
	SECTION 5.  Except as provided by Section 4 of this Act, this
	Act takes effect September 1, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1877 passed the Senate on
	May 5, 2011, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1877 passed the House on
	May 25, 2011, by the following vote:  Yeas 147, Nays 0, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor