By: Nevárez	H.B. No. 1402

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Coates Ranch Municipal Utility
	District No. 1; providing authority to issue bonds; providing
	authority to impose assessments, fees, and taxes.
	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 8373 to read as follows:
	CHAPTER 8373.  COATES RANCH MUNICIPAL UTILITY DISTRICT NO. 1
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 8373.001.  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 Coates Ranch Municipal
	Utility District No. 1.
	Sec. 8373.002.  NATURE OF DISTRICT.  The district is a
	municipal utility district created under Section 59, Article XVI,
	Texas Constitution.
	Sec. 8373.003.  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. 8373.004.  CONSENT OF MUNICIPALITY REQUIRED.  The
	temporary directors may not hold an election under Section 8373.003
	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. 8373.005.  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. 8373.006.  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.  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.
	SUBCHAPTER B.  BOARD OF DIRECTORS
	Sec. 8373.051.  GOVERNING BODY; TERMS.  (a)  The district is
	governed by a board of five elected directors.
	(b)  Except as provided by Section 8373.052, directors serve
	staggered four-year terms.
	Sec. 8373.052.  TEMPORARY DIRECTORS. (a)  The temporary
	board consists of:
	(1)  Hugh Coates;
	(2)  Dennette Coates; and
	(3)  Greg Leach.
	(b)  On or after the effective date of the Act enacting this
	chapter, 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 three persons named in the petition.  The commission
	shall appoint as temporary directors the three persons named in the
	petition.
	(c)  Temporary directors serve until the earlier of:
	(1)  the date permanent directors are elected under
	Section 8373.003; or
	(2)  the fourth anniversary of the effective date of
	the Act enacting this chapter.
	(d)  If permanent directors have not been elected under
	Section 8373.003 and the terms of the temporary directors have
	expired, successor temporary directors shall be appointed or
	reappointed as provided by Subsection (e) to serve terms that
	expire on the earlier of:
	(1)  the date permanent directors are elected under
	Section 8373.003; or
	(2)  the fourth anniversary of the date of the
	appointment or reappointment.
	(e)  If Subsection (d) 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 persons
	named in the petition.  The commission shall appoint as successor
	temporary directors the persons named in the petition.
	SUBCHAPTER C.  POWERS AND DUTIES
	Sec. 8373.101.  GENERAL POWERS AND DUTIES. The district has
	the powers and duties necessary to accomplish the purposes for
	which the district is created.
	Sec. 8373.102.  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. 8373.103.  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. 8373.104.  APPROVAL OF ROAD PROJECT. (a)  The district
	may not undertake a road project authorized by Section 8373.103
	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. 8373.105.  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. 8373.106.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
	Sec. 8373.151.  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 8373.153.
	(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. 8373.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 8373.151, 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. 8373.153.  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.
	SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
	Sec. 8373.201.  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. 8373.202.  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. 8373.203.  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 Coates Ranch Municipal Utility District
	No. 1 initially includes all the territory contained in the
	following area:
	Tract I:
	Said 921.8551 acres of land lying and being situated in
	Kinney County, Texas; about seven miles N 21° W of the City of
	Brackettville, the County Seat; containing acreages in the various
	Surveys, as follows:
	Sur. No. Original Grantee Abst. No. Acres.
	3 H. L. Dignowity 621 72.3267
	268 P. Moore 507 2.5831
	517 H. E. & W. T. R.R. Co. 816 419.8181
	523 H. E. & W. T. R.R. Co. 817 164.8747
	524 G. Dietzel 1673 262.2525
	Total 921.8551 Ac.
	Said 921.8551 acres of land being the southeast portion of
	the Eduardo A. de la Graza Lands; and being more fully described by
	metes and bounds, as follows:
	BEGINNING at a 5/8" Steel Pin found at a fence corner post,
	for the Westernmost corner of this tract, and the common corner of
	the following four Surveys, viz.: the East corner of Sur. No. 409,
	B.B.B. & C. R.R. Co.; the South corner of Sur. No. 413, S.F.A.M. & I.
	Co.; the West corner of said Sur. No. 517; and the North corner of
	Sur. No. 410, Ben S. Jones;
	THENCE with fence along the northwest lines of said Sur. No.
	517 and Sur. No. 3, the southeast line of said Sur. No. 413, N 32° 00'
	00" E 4859.13 ft. to a 5/8" Steel Pin, found at a fence corner post;
	for a re-entrant corner of a 40.00 ft. wide road easement (as
	recorded in Tract III, in Vol. A-66, Page 277-280, Deed Records),
	and a North corner of this tract;
	THENCE leaving said Survey line, and with fence along a
	southwest R.O.W. line of said 40.00 ft. wide road easement, S 42° 04'
	08" E 192.52 ft. to a 5/8" Steel Pin found at a fence corner post,
	for a South corner of said road easement, and a re-entrant corner of
	this tract;
	THENCE leaving fence and continuing with the southeast R.O.W.
	line of said road easement, along a northwest side of this tract, as
	follows:
	N 42° 02' 32" E 991.47 ft. to a large creosoted post in
	concrete, for corner;
	N 54° 31' 40" E, crossing the northeast line of said Sur.
	No. 3, the southwest line of said Sur. No. 524, 1053.77 ft. to a
	large creosoted post in concrete, for corner; and
	THENCE S 59° 19' 30" E 221.71 ft. to a 5/8" Steel Pin found in
	fence; for the South corner of the S.E. terminal of said road
	easement, and a re-entrant corner of this tract;
	THENCE continuing with the northwest side of this tract, with
	fence and 5/8" Steel Pins found at fence corner posts, for corners,
	as follows:
	N 29° 52' 14" E, at 40.00 ft. pass a point for the North
	corner of the S.E. terminal of said road easement; total 1722.04
	ft.;
	N 40° 30' 16" E 1529.27 ft.;
	N 14° 50' 33" W, crossing the northwest line of said Sur.
	No. 524, the southeast line of said Sur. No. 268, 1560.55 ft.; and
	THENCE N 33° 53' 54" E 131.42 ft. to a 5/8" Steel Pin found at a
	fence corner post, in the northeast line of said Sur. No. 268, the
	southwest line of Sur. No. 2, I. & G.N. R.R. Co., Blk. 6; for the
	Northernmost corner of this tract;
	THENCE with fence, along the southwest line of said Sur. No.
	2, the northeast lines of Sur. Nos. 268, 524, and 523, respectively,
	and along a northeast side of this tract, S 58° 47' 22" E 4337.16 ft.
	to a 5/8" Steel Pin, found at a fence corner post in the west line of
	Sur. No. 8, I. & G.N. R.R. Co., Blk. 6; for a South corner of said
	Sur. No. 2, the N.E. corner of said Sur. No. 523, and the N.E. corner
	of this tract;
	THENCE with fence and the west line of said Sur. No. 8, along
	the east line of said Sur. No. 523 and an east side of this tract, S
	00° 25' 19" W 2398.89 ft. to a 5/8" Steel Pin, found at a fence corner
	post, for the E.S.E. corner of this tract;
	THENCE leaving said Survey line, and with fence along a
	southeast side of this tract, as follows:
	N 89° 06' 42" W 1058.11 ft. to a 5/8" Steel Pin set at a
	fence corner post, for corner;
	S 80° 43' 46" W 478.65 ft. to a 1" Steel Pin found under
	fence, for corner;
	S 80° 31' 20" W 659.66 ft. to a 5/8" Steel Pin set at a
	fence corner post, for corner;
	S 83° 54' 33" W 882.17 ft. to a 3/4" Steel Pin found at a
	fence corner post, for an East re-entrant corner;
	S 10° 48' 00" E 736.67 ft. to a 3/4" Steel Pin found near
	a 3-way fence corner post, for corner;
	S 82° 17' 14" E 76.27 ft. to a 3/4" Steel Pin found near a
	3-way fence corner post, for corner;
	S 42° 54' 05" W 468.96 ft. to a 3/4" Steel Pin found at a
	fence corner post, for corner;
	S 00° 05' 29" E 81.77 ft. to a 5/8" Steel Pin set at a
	large dead Elm tree stump fence corner, for corner;
	S 12° 51' 33" E, crossing Elm Creek, 63.57 ft. to a 5/8"
	Steel Pin set at a 10" Elm tree fence corner;
	S 07° 47' 12" W 215.66 ft. to a 5/8" Steel Pin set at a
	north gate post, for corner;
	S 68° 06' 02" W, crossing private pasture road, 15.17 ft.
	to a 5/8" Steel Pin set at a south gate post, for corner;
	S 21° 59' 21" W 110.37 ft. to a 1" Steel Pin, found at a
	fence corner post in the southwest line of said Sur. No. 523, the
	northeast line of Sur. No. 518, J. Herzing; for a middle S.E. corner
	of this tract;
	THENCE continuing, and with said Survey line, N 58° 08' 12" W
	136.75 ft. to a 5/8" Steel Pin found at a fence corner post, for the
	North corner of said Sur. No. 518, the East corner of said Sur. No.
	517, and a re-entrant corner of this tract;
	THENCE with fence and the northwest line of said Sur. No. 518,
	the southeast line of said Sur. No. 517, along a southeast side of
	this tract, S 32° 40' 56" W 5967.46 ft. to a 5/8" Steel Pin found at a
	3-way fence corner, in the northeast line of Sur. No. 410, Ben S.
	Jones; for the West corner of said Sur. No. 518, the South corner of
	said Sur. No. 517, and the Southernmost corner of this tract;
	THENCE with fence and the northeast line of said Sur. No. 410,
	the southwest line of said Sur. No. 517, along a southwest side of
	this tract, N 58° 01' 13" W, crossing Elm Creek, 3612.76 ft. to the
	place of BEGINNING;
	and property:
	TRACT A:
	BEING 680.0186 acres of land, more or less, lying and being situated
	in Kinney County, Texas, about seven miles N 21° W of Brackettville,
	the County Seat, containing acreage in various Surveys, as follows:
	Sur. No. Original Grantee Abst. No. Acres
	3 H L. Dignowity 621 7.6652
	267 H. N Cleveland 38 37.7480
	268 P Moore 507 578.5462
	524 G Dietzel 1673 56.0592
	Total 680.0186Ac.
	Said tract of 680.0186 acres being more fully described by metes and
	bounds, in one body, as follows:
	BEGINNING at a 5/8" Steel Pin set at corner of Fence, in the S.E.
	line of Sur. No. 413, S F.A.M. & I Co., distant 4859 13 N 32° E of its
	South corner.  Said point being the East corner of the O.D. Dooley
	Farms;
	THENCE along the northwestern line of Sur. No. 517, N 32° 00' 00" E
	1109.19 ft. to a point for the East Corner of Sur No. 413;
	THENCE along its N.E. line N 58° 00' 00" W 3943.41 ft. to a point in
	fence for a corner;
	THENCE with fence, N 41° 40'28" E 988.09 ft. to a 5/8" Steel Pin at
	fence corner;
	THENCE with fence N 23° 57' 59" W 2141.26 ft.; and N 15° 12' 55" W
	828.38 ft. to a 5/8" Steel Pin at fence corner;
	THENCE with fence N 70° 05' 10" E 1361.21 ft. to a corner;
	THENCE with fence N 83° 56' 06" E 1846.46 ft. to a 16" Live Oak for a
	corner;
	THENCE with fence as follows:
	N 74° 52' 12" E 253 62 ft. to a corner;
	N 48° 36' 04" E 34 92 ft. to a corner;
	S 59° 17' 38" E 1611 56 ft. to a 5/8" Steel Pin at fence corner,
	in the S.W line of Sur. No. 2, I & G N RR. Co., Blk. 6;
	THENCE with fence and along the S.W. line of Sur. No. 2, S 58° 47'
	22" E 2086.39 ft. to a 5/8" Steel Pin at corner of fence;
	THENCE with fence as follows:
	S 33° 53' 54" W 131 42 ft. to a corner;
	S 14° 50' 33" E 1560.55 ft. to a corner;
	S 40° 30' 16" W 1529 27 ft. to a corner; and
	S 29° 52' 14" W 1722.04 ft. to a 5/8" Steel Pin for corner;
	THENCE leaving fence, N 59° 19' 30" W 221 71 ft. to a 5/8" Steel Pin
	for corner;
	THENCE S 54° 31' 40" W 1058.77 ft. to a 5/8" Steel Pin for a corner;
	THENCE S 42° 02' 32" W 991 47 ft. to a 5/8" Steel Pin in fence for
	corner;
	THENCE with fence N 42° 04' 08" W 192.52 ft. to the place of
	BEGINNING.
	TRACT B:
	BEING 102.5974 acres of land, more or less, lying and being situated
	in Kinney County, Texas, about seven miles N 21° W of Brackettville,
	the County Seat, all out of Sur. No. 413, S.F A.M. & I. Co.,
	Original Grantee, Abst. No. 570;
	BEGINNING at a 5/8" Steel Pin set at corner of fence, in the S E.
	line of Sur No. 413, at a point 1109.19 ft. S 32° 00' 00" W from its
	East corner;
	THENCE with fence N 57° 56' 13" W 4079.16 ft. to a 5/8" Steel Pin for
	a corner;
	THENCE crossing Road, N 45° 31' 58" W 51.89 ft. to a 5/8" Steel Pin
	for the West corner;
	THENCE N 41° 40' 28" E 1109.27 ft. to a point for the North corner;
	THENCE along the N E. line of Sur. No. 413, S 58° 00' 00" E 3943.41
	ft. to a point for its East corner;
	THENCE along the S.E. line of Sur No. 413, S 32° 00' 00" W 1109.19 ft
	to the place of BEGINNING.
	TRACT C:
	An undivided one-half (1/2) interest in and to the following
	described parcels of land, to-wit:
	Parcel 1:
	BEING 4.4662 acres of land, more or less, lying and being situated
	in Kinney County, Texas, about seven miles N 21° W of Brackettville,
	the County Seat, all out of Sur. No. 409, B.B.B & C RR. Co., Original
	Grantee, Abst. No. 20; said 4 4662 acres being more fully described
	by metes and bounds as follows:
	BEGINNING at a 5/8" Steel Pin set for the north corner of this
	tract, in the N.E. line of Sur. No. 409, and distant 4382.33 ft. N
	57° 49' 51" W of its East corner;
	THENCE crossing Road S 58° 00' 21" E 49.58 ft. to a point for the east
	corner;
	THENCE S 32° 06' 15" W 4011 33 ft. to a 5/8" Steel Pin for the South
	corner, set in the N E. Right-of-Way line of Ranch Road No. 2804;
	THENCE along said R.O.W N 56° 58 00" W 47.44 ft to a 5/8" Steel Pin
	for the West corner;
	THENCE N 32° 04' 25" E 4010 47 ft to the place of BEGINNING.
	Parcel 2:
	BEING 11 010 acres of land, more or less, lying and being situated
	in Kinney County, Texas, about seven miles N 21° W of Brackettville,
	the County Seat, all out of Sur No. 413, S F A.M & I Co., Original
	Grantee, Abst. No. 570, said 11.0100 acres being more fully
	described by metes and bounds, as follows:
	BEGINNING at a 5/8" Steel Pin set for the West corner of this tract,
	in the S W. line of Sur No. 413, and distant 4382 22 ft. N 57° 49' 51"
	W of its South corner;
	THENCE with fence N 29° 02' 19" E 136.01 ft. to a corner;
	THENCE with fence as follows:
	N 35° 50' 10" E 3621.84 ft.
	N 35° 46' 18" E 146 45 ft.
	N 35° 49' 53" E 74.75 ft.
	N 32° 09' 56" E 891 62 ft to a 5/8" Steel Pin for the North
	corner;
	THENCE crossing Road, S 45° 31' 58" E 51.89 ft. to a fence corner, at
	5/8" Steel Pin;
	THENCE with fence, S 32° 02' 11" W 2598 06 ft. to a corner;
	THENCE with fence S 38° 43' 57" W 2146.97 ft. and S 32° 06' 15" W
	120.46 ft. to a point for a corner;
	THENCE crossing Road N 58° 00' 21" W 49.58 ft. to the place of
	BEGINNING
	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.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2015.