S.B. No. 1823
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
(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,
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,
(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
(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
(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
(2) the date this chapter expires under Section
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
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;
(2) contain a metes and bounds description for each
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
(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
(2) appoint five directors for each of the other new
(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
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
(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
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
SECTION 2. The Schertz Municipal Utility District No. 1
initially includes the territory contained within the following
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
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,
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(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
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