CHAPTER 8141. DALLAS COUNTY MUNICIPAL UTILITY DISTRICT NO. 3 - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8141. DALLAS COUNTY MUNICIPAL UTILITY DISTRICT NO. 3

For contingent expiration of this chapter, see Sec. 8141.003.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8141.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "Director" means a member of the board.

(3) "District" means the Dallas County Municipal Utility

District No. 3.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.002. NATURE OF DISTRICT. The district is a municipal

utility district in Dallas County created under and essential to

accomplish the purposes of Section 52, Article III, and Section

59, Article XVI, Texas Constitution. The district is created to

serve a public use and benefit.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.003. CONFIRMATION ELECTION REQUIRED. If the creation

of the district is not confirmed at a confirmation election held

under Section 8141.024 before September 1, 2007:

(1) the district is dissolved September 1, 2007, except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of debts shall be

transferred to Dallas County; and

(C) the organization of the district shall be maintained until

all debts are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2010.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.004. 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 district;

(2) the right of the district to impose taxes; or

(3) the legality or operation of the board.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER A1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Sec. 8141.026

Sec. 8141.021. TEMPORARY DIRECTORS. (a) The temporary board

consists of:

(1) David Alan Bunch;

(2) Douglas Lee Bynum;

(3) Brent Turner Huddleston;

(4) Timothy Michael Mueller; and

(5) Tobin Douglas Tewell.

(b) 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.

(c) Temporary directors serve until the earlier of:

(1) the date directors are elected under Section 8141.024; or

(2) the date this chapter expires under Section 8141.003.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS.

As soon as practicable after all the temporary directors have

qualified under Section 49.055, Water Code, the temporary

directors shall convene the organizational meeting of the

district at a location in the district agreeable to a majority of

the directors. If a location cannot be agreed upon, the

organizational meeting shall be at the Dallas County Courthouse.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.023. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors may not hold an election under Section 8141.024 until

each municipality in whose corporate limits or extraterritorial

jurisdiction the district is located has adopted a resolution

consenting to the creation of the district.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.024. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. If

the requirements of Section 8141.023 have been met, the temporary

directors shall hold an election to confirm the creation of the

district and to elect five directors as provided by Section

49.102, Water Code.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.025. INITIAL ELECTED DIRECTORS; TERMS. The directors

elected under Section 8141.024 shall draw lots to determine which

two shall serve until the first regularly scheduled election of

directors under Section 8141.052 and which three shall serve

until the second regularly scheduled election of directors.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.026. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2010.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8141.051. DIRECTORS; TERMS. (a) The district is governed

by a board of five directors.

(b) Directors serve staggered four-year terms.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.052. ELECTION OF DIRECTORS. On the uniform election

date in May of each even-numbered year, the appropriate number of

directors shall be elected.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8141.101. 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.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.102. ROAD PROJECTS. (a) The district may construct,

acquire, improve, maintain, or operate macadamized, graveled, or

paved roads or turnpikes, or improvements in aid of those roads

or turnpikes, inside the district.

(b) A road project must meet or exceed all applicable

construction standards, zoning and subdivision requirements, and

regulatory ordinances of each municipality in whose corporate

limits or extraterritorial jurisdiction the district is located.

If the district is located outside the extraterritorial

jurisdiction of a municipality, a road project must meet or

exceed all applicable construction standards, zoning and

subdivision requirements, and regulatory ordinances of each

county in which the district is located.

(c) The district may not undertake a road project unless each

municipality in whose corporate limits or extraterritorial

jurisdiction the district is located consents by ordinance or

resolution. If the district is located outside the

extraterritorial jurisdiction of a municipality, the district may

not undertake a road project unless each county in which the

district is located consents by ordinance or resolution.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.103. ROAD CONTRACTS. The district may contract for a

road project in the manner provided by Subchapter I, Chapter 49,

Water Code.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.104. WATER CONTROL AND STORAGE PROJECTS. (a) The

district may construct, acquire, improve, or maintain dams,

embankments, reservoirs, lakes, or other improvements as

necessary to control, store, or preserve water in the district

for any useful purpose.

(b) The district may overflow and inundate district lands and

other district property in the district.

(c) A project authorized by this section is subject to all

applicable permitting and regulatory requirements.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.105. CERTIFICATE OF CONVENIENCE AND NECESSITY. (a)

The district may pay out of bond proceeds or other available

district money all expenses, including legal, engineering, and

surveying fees, related to obtaining a new certificate of

convenience and necessity under Chapter 13, Water Code,

authorizing the district to provide retail water or sewer service

inside or outside the district.

(b) The district may pay out of bond proceeds or other available

district money all expenses, including the purchase price,

related to acquiring certificate of convenience and necessity

rights from another retail public utility to allow the district

to provide retail water or sewer service in the district.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.106. CONTRACT WITH POLITICAL SUBDIVISION FOR WATER OR

SEWER SERVICES. (a) The district may enter into a contract to

allow a political subdivision to provide retail water or sewer

service in the district. The contract may contain terms the

board considers desirable, fair, and advantageous to the

district.

(b) The contract may provide that the district will construct or

acquire and convey to the political subdivision a water supply or

treatment system, a water distribution system, or a sanitary

sewage collection or treatment system, as necessary to provide

water or sewer service in the district.

(c) The district may use bond proceeds or other available

district money to pay for its obligations and for services and

facilities provided under the contract.

(d) If the contract requires the district to make payments from

taxes other than operation and maintenance taxes, the contract is

subject to Section 49.108, Water Code.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8141.151. OPERATION AND MAINTENANCE TAX. (a) The district

may impose a tax for any district operation and maintenance

purpose in the manner provided by Section 49.107, Water Code.

(b) Section 49.107(f), Water Code, does not apply to

reimbursements for projects constructed or acquired under Section

8141.102.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.152. TAX TO REPAY BONDS. The district may impose a

tax to pay the principal of and interest on bonds issued under

Section 8141.201.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.153. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND

ASSESSMENTS. The district may not impose an impact fee or

assessment on the property, including the equipment,

rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined

by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001,

Utilities Code;

(3) a telecommunications provider as defined by Section 51.002,

Utilities Code;

(4) a cable operator as defined by 47 U.S.C. Section 522; or

(5) a person who provides to the public advanced

telecommunications services.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER E. BONDS

Sec. 8141.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS;

TAX. (a) The district may issue bonds or other obligations as

provided by Chapters 49 and 54, Water Code, and to finance:

(1) the construction, maintenance, or operation of projects

under Sections 8141.102 and 8141.104; or

(2) the district's contractual obligations under Section

8141.106.

(b) The district may issue bonds or other obligations payable

wholly or partly from ad valorem taxes, impact fees, revenue,

grants, or other district money or any combination of those

sources.

(c) The district may not issue bonds or other obligations

secured wholly or partly by ad valorem taxation to finance

projects authorized by Section 8141.102 unless the issuance is

approved by a vote of a two-thirds majority of the voters of the

district voting at an election called for that purpose.

(d) Bonds or other obligations issued or incurred to finance

projects authorized by Section 8141.102 may not exceed one-fourth

of the assessed value of the real property in the district.

(e) Sections 49.181 and 49.182, Water Code, do not apply to a

project undertaken by the district under Section 8141.102 or to

bonds issued by the district to finance the project.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

SUBCHAPTER F. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 8141.251. 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 may consider a proposal to divide the district on:

(1) a petition of a landowner in the district; or

(2) a motion by the board.

(d) If the board decides to divide the district, the board

shall:

(1) set the terms of the division, including names for the new

districts and a plan for the payment or performance of any

outstanding district obligations; and

(2) prepare a metes and bounds description for each proposed

district.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.252. ELECTION FOR DIVISION OF DISTRICT. (a) After

the board has complied with Section 8141.251(d), the board shall

hold an election in the district to determine whether the

district should be divided as proposed.

(b) The board shall give notice of the election not later than

the 35th day before the date of the election. The notice must

state:

(1) the date and location of the election; and

(2) the proposition to be voted on.

(c) If a majority of the votes cast are in favor of the

division:

(1) the district shall be divided; and

(2) not later than the 30th day after the date of the election,

the district shall provide written notice of the division to:

(A) the Texas Commission on Environmental Quality;

(B) the attorney general;

(C) the commissioners court of each county in which a new

district is located; and

(D) any municipality having extraterritorial jurisdiction over

territory in each new district.

(d) If a majority of the votes cast are not in favor of the

division, the district may not be divided.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.253. 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 districts; and

(2) appoint five directors for each of the other new districts.

(b) Directors appointed under Subsection (a)(1) serve the

staggered terms to which they were elected in the original

district. Directors appointed under Subsection (a)(2) serve

until the election for directors under Subsection (c).

(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). The directors shall draw lots to determine which two

shall serve two-year terms and which three shall serve four-year

terms.

(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 be elected.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.254. 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 under

Section 8141.251(d).

(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.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.

Sec. 8141.255. 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 consider

appropriate.

Added by Acts 2005, 79th Leg., Ch.

778, Sec. 1, eff. June 17, 2005.