SRC-AMY S.B. 1933 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 1933
By: Staples
Natural Resources
8/14/2003
Enrolled

DIGEST AND PURPOSE 

Currently the board of directors of the Waterwood Municipal Utility
District No. 1 (board) is unable to de-annex land from the Waterwood
Municipal Utility District No. 1.  There is a large area of land that has
not been developed and will never receive services.  S.B. 1933 creates a
special law to allow the board to hear a petition of de-annexation from a
property owner who will never receive services.  The board has discretion
in granting the application.  The exclusion of the land does not impair
the rights of holders of any outstanding bonds, warrants, or other
certificates of indebtedness.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITIONS.  Defines "board" and "district."

SECTION 2.  EXCLUSION OF LAND WITHIN DISTRICT.  (a) Authorizes the
Waterwood Municipal Utility District  No. 1 (district), notwithstanding
any other provisions of law, to exclude land from its boundaries under
this section.   Requires the board of the district to call a hearing on
the exclusion of land from the district on a written petition filed with
the secretary of the board by a landowner whose land has been included in
and taxable by the district for more than 28 years if any bonds issued by
the district payable in whole or in part from taxes of the district are
outstanding and the petition meets certain requirements. 

(b)  Authorizes the board of the district to exclude land under this
section only on certain findings. 
   
(c)   Authorizes the board of directors of the district (board), if
evidence presented at the hearing conclusively demonstrates that the
requirements and grounds for exclusion described by Subsections (a) and
(b) have been met, to enter an order excluding the land from the district.
Requires the board, if the board enters an order excluding the land, to
redefine in the order the boundaries of the district to embrace all land
not excluded. 
 
(d)  Requires a copy of an order excluding land and redefining the
boundaries of the district to be filed in the deed records of the county
in which the district is located. 
 
(e)  Provides that the exclusion of land under this section does not
impair the rights of the holders of any outstanding bonds, warrants, or
other certificates of indebtedness of the district. 
 
(f)  Authorizes the district, after any land is excluded under this
section, to issue any unissued additional debt approved by the voters of
the district before exclusion of the land under this section without
holding a new election.  Prohibits additional debt issued after land is
excluded from the district from being payable from the taxable value of
the excluded land and provides that additional debt does  not create a
lien against the taxable value of the excluded land. 
 
(g)  Provides that for purposes of this section, "land" includes any
improvements to the land, and when used in the context of property taxes,
"land" has the meaning assigned to "real property" by Section 1.04, Tax
Code. 
 
SECTION 3.  TAX LIABILITY OF EXCLUDED LAND; BONDS OUTSTANDING.  (a)
Provides that land excluded from the district under Section 2 of this Act
that is pledged as security for any outstanding debt of the district
remains pledged for its pro rata share of the debt until final payment is
made.  Requires the district to continue to levy and collect taxes on the
excluded land at the same rate levied on land remaining in the district
until the amount of taxes collected from the excluded land equals the
land's pro rata share of the district's debt outstanding at the time the
land was excluded from the district.   

(b) Requires the district to apply the taxes collected on the excluded
land only to the payment of the excluded land's pro rata share of the
debt. 

SECTION 4.  EFFECTIVE DATE.  Effective date:  upon passage or September 1,
2003.