CHAPTER 8204. SOMERSET MUNICIPAL UTILITY DISTRICT NO. 2 - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8204. SOMERSET MUNICIPAL UTILITY DISTRICT NO. 2

For contingent expiration of this chapter, see Section 8204.004.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8204.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Somerset Municipal Utility District No.

2.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.002. NATURE OF DISTRICT. The district is a municipal

utility district in San Jacinto County created under and

essential to accomplish the purposes of Section 52, Article III,

and Section 59, Article XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.003. FINDING OF PUBLIC USE AND BENEFIT. The district

is created to serve a public use and benefit.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.004. CONFIRMATION ELECTION REQUIRED. If the creation

of the district is not confirmed at a confirmation election held

under Section 8204.023 before September 1, 2009:

(1) the district is dissolved September 1, 2009, except that the

district shall:

(A) pay any debts incurred;

(B) transfer to San Jacinto County any assets that remain after

the payment of debts; and

(C) maintain the organization of the district until all debts

are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2012.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.005. 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Section 8204.025.

Sec. 8204.021. TEMPORARY DIRECTORS. (a) The temporary board

consists of:

(1) Aaron Corey;

(2) Eric Lopez;

(3) Greg Attaway;

(4) Marty Grisham; and

(5) Eric Jones.

(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 8204.023; or

(2) the date this chapter expires under Section 8204.004.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.022. 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 San Jacinto County

Courthouse.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.023. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.

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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.024. INITIAL ELECTED DIRECTORS; TERMS.The directors

elected under Section 8204.023 shall draw lots to determine which

two shall serve until the first regularly scheduled election of

directors and which three shall serve until the second regularly

scheduled election of directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.025. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2012.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8204.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five directors.

(b) Directors serve staggered four-year terms.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8204.101. 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.102. ROAD PROJECTS; LIMIT ON EMINENT DOMAIN POWER.

(a) The district may construct, acquire, improve, maintain, or

operate macadamized, graveled, or paved roads, or improvements in

aid of those roads.

(b) A road project must meet all applicable construction

standards, zoning and subdivision requirements, and regulations

of each municipality in whose corporate limits or

extraterritorial jurisdiction the district is located. If the

district is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, a road project

must meet all applicable construction standards, zoning and

subdivision requirements, and regulations 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 resolution. If

the district is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the district may

not undertake a road project unless each county in which the

district is located consents by resolution.

(d) The district may not exercise the power of eminent domain

outside the district for a road project.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.103. ROAD CONTRACTS. The district may contract for a

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

Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.104. RECREATIONAL FACILITIES; LIMIT ON EMINENT DOMAIN

POWER. (a) In this section, "recreational facilities" has the

meaning assigned by Section 49.462, Water Code.

(b) The district may develop and maintain recreational

facilities.

(c) The district may not, for the development or maintenance of

a recreational facility, acquire by condemnation land, an

easement, or other property inside or outside the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8204.151. OPERATION AND MAINTENANCE TAX. The district may

impose a tax for any district operation and maintenance purpose

in the manner provided by Section 49.107, Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.152. TAX TO REPAY BONDS. The district may impose a

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

Section 8204.201.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.153. 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER E. BONDS

Sec. 8204.201. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.

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

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

construction, maintenance, or operation of projects under Section

8204.102.

(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.

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

secured wholly or partly by ad valorem taxation to finance

projects authorized by Section 8204.102 unless the issuance is

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

voting at an election called for that purpose.

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

projects authorized by Section 8204.102 may not exceed one-fourth

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

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

SUBCHAPTER F. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 8204.251. DIVISION OF DISTRICT; REQUIREMENTS. (a) At any

time before the district issues indebtedness secured by taxes or

net revenue, the district 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) Any new district created by the division of the district may

not, at the time the new district is created, contain any land

outside the area described by Section 2 of the Act creating this

chapter.

(d) 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.

(e) 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.252. ELECTION FOR DIVISION OF DISTRICT. (a) After

the board has complied with Section 8204.251(e), 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 is 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.253. 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, the appointed board shall hold an election 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 until the next regularly

scheduled election of directors and which three shall serve until

the second regularly scheduled election of directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.254. 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 revenue 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 8204.251(e).

(c) Any other district obligation is 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.

Sec. 8204.255. 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 2007, 80th Leg., R.S., Ch.

983, Sec. 1, eff. June 15, 2007.