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


Senate Research Center   S.B. 1933
By: Staples
Natural Resources
5/3/2003
As Filed


DIGEST AND PURPOSE 

Currently the board of director of the Waterwood Municipal Utility
District are unable to deannex land from the district.  There is a large
area of land that has not been developed and will never receive services.
As proposed, S.B. 1933 creates a special law to allow the district's board
to hear a petition of de-annexation from a property owner who will never
receive services.  The board maintains discretion in granting the
application.  The bill requires all bonds to be paid. 

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.  Amends Subchapter H, Chapter 54, Water Code, by adding
Sections 54.748 and Section 54.749 as follows: 

Sec. 54.748.  EXCLUSION LAND LOCATED WITHIN WATERWOOD MUNICIPAL UTILITY.
(a)  Requires the board of the Waterwood Municipal Utility 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 after considering evidence presented at the
hearing that 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 and shall 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 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 and does not create a
lien against the taxable value of the excluded land. 
 
(g)  Provides that for purposes of this section and Section 49.3077,
"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 54.749.  TAX LIABILITY OF EXCLUDED LAND, BONDS OUTSTANDING. (a)
Provides that land excluded from the district under Section 40.3076 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. 
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 2.  Effective date:  upon passage or September 1, 2003.