By Keel                                               H.B. No. 3589

         75R10897 MI-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to authorizing Lakeway Municipal Utility District to

 1-3     exclude land or other property from its boundaries.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  DEFINITIONS.  In this Act:

 1-6                 (1)  "District" means Lakeway Municipal Utility

 1-7     District, Travis County, Texas, created by order of the Texas Water

 1-8     Rights Commission on February 17, 1972.

 1-9                 (2)  "Board" means the board of directors of the

1-10     district.

1-11           SECTION 2.  EXCLUSION OF LAND OR OTHER PROPERTY.  (a)  The

1-12     board by order may exclude from the district land or other property

1-13     within the district boundaries on any of the grounds for exclusion

1-14     included in Section 49.306, Water Code, if:

1-15                 (1)  the board receives a petition signed by the owners

1-16     of the land or other property to be excluded requesting exclusion

1-17     of the land or other property;

1-18                 (2)  the board does not have sufficient remaining

1-19     authorized but unissued bonds to construct all district facilities

1-20     necessary or advisable to allow the land or other property to be

1-21     fully developed; and

1-22                 (3)  the owners of the land or other property pay to

1-23     the district, at the time the land or other property is excluded, a

1-24     one-time payment equal to the portion of the remaining outstanding

 2-1     tax-supported bonds issued by the district before exclusion that is

 2-2     attributable to the land or other property being excluded.

 2-3           (b)  The amount to be paid under Subsection (a)(3) shall be

 2-4     calculated by dividing the assessed value of the land and other

 2-5     property being excluded, as reflected on the district's tax rolls

 2-6     in the year of the exclusion, by the total assessed value of all

 2-7     the land and property in the district in the year of the exclusion.

 2-8           (c)  The district shall treat a debt service payment made to

 2-9     the district under this section as tax revenue pledged to the

2-10     payment of the earlier issued tax-supported bonds.

2-11           SECTION 3.  BOND HOLDERS.  The exclusion of land or other

2-12     property under this Act does not affect, diminish, or impair the

2-13     rights of the holders of any outstanding and unpaid bonds,

2-14     warrants, or other obligations of the district or the obligation of

2-15     the board annually to adjust the district's tax rate to provide

2-16     sufficient tax revenues for debt service on all outstanding bonds.

2-17           SECTION 4.  BOND ELECTIONS.  An exclusion of land under this

2-18     Act does not invalidate an election by the district held before the

2-19     effective date of this Act at which approval was given for the

2-20     issuance of bonds payable in whole or in part from taxes.  The

2-21     district may continue to rely on such an election and issue the

2-22     remaining authorized but unissued bonds without holding another

2-23     election, notwithstanding any other law to the contrary.

2-24           SECTION 5.  OTHER APPLICABLE LAW.  Chapter 49, Water Code,

2-25     applies to the exclusion of land or other property under this Act

2-26     to the extent that Chapter 49 is not inconsistent with this Act.

2-27           SECTION 6.  EMERGENCY.  The importance of this legislation

 3-1     and the crowded condition of the calendars in both houses create an

 3-2     emergency and an imperative public necessity that the

 3-3     constitutional rule requiring bills to be read on three several

 3-4     days in each house be suspended, and this rule is hereby suspended,

 3-5     and that this Act take effect and be in force from and after its

 3-6     passage, and it is so enacted.