CHAPTER 8342. HOOD COUNTY GRANBURY MUNICIPAL UTILITY DISTRICT NO. 1 - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8342. HOOD COUNTY GRANBURY MUNICIPAL UTILITY

DISTRICT NO. 1

For contingent expiration of this chapter, see Section 8342.004.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8342.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Hood County Granbury Municipal Utility

District No. 1.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.002. NATURE OF DISTRICT. The district is a municipal

utility district created under Section 59, Article XVI, Texas

Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.003. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.004. CONSENT OF MUNICIPALITY AND DEVELOPMENT AGREEMENT

REQUIRED. (a) The temporary directors may not hold an election

under Section 8342.003 until each municipality in whose corporate

limits or extraterritorial jurisdiction the district is located

has:

(1) consented by ordinance or resolution to the creation of the

district; and

(2) entered into a development agreement with the majority owner

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

(b) If a development agreement required under Subsection (a)(2)

has not been entered into before September 1, 2010:

(1) the district is dissolved September 1, 2010, except that:

(A) any debts incurred shall be paid;

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

transferred to Hood 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, 2013.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.005. 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, improvement, operation, or

maintenance of macadamized, graveled, or paved roads, or

improvements, including storm drainage, in aid of those roads.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.006. 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 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8342.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five elected directors.

(b) Except as provided by Section 8342.052, directors serve

staggered four-year terms.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.052. TEMPORARY DIRECTORS. (a) The temporary board

consists of:

(1) Jeffrey Krueger;

(2) William Bruce Schneider;

(3) Kevin Patton;

(4) Virgil R. Briscoe; and

(5) Jeffrey K. Wilson.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

8342.003; or

(2) September 1, 2013.

(c) If permanent directors have not been elected under Section

8342.003 and the terms of the temporary directors have expired,

successor temporary directors shall be appointed or reappointed

as provided by Subsection (d) to serve terms that expire on the

earlier of:

(1) the date permanent directors are elected under Section

8342.003; or

(2) the fourth anniversary of the date of the appointment or

reappointment.

(d) If Subsection (c) 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 five

persons named in the petition. The commission shall appoint as

successor temporary directors the five persons named in the

petition.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8342.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties necessary to accomplish the purposes for which

the district is created.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.102. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.103. AUTHORITY FOR ROAD PROJECTS. Under Section 52,

Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, operate,

maintain, and convey to this state, a county, or a municipality

for operation and maintenance macadamized, graveled, or paved

roads, or improvements, including storm drainage, in aid of those

roads.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.104. ROAD STANDARDS AND REQUIREMENTS. (a) 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 road project is located.

(b) If a road project is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the road project

must meet all applicable construction standards, subdivision

requirements, and regulations of each county in which the road

project is located.

(c) If the state will maintain and operate the road, the Texas

Transportation Commission must approve the plans and

specifications of the road project.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.105. COMPLIANCE WITH MUNICIPAL REGULATIONS. Any

water, sanitary sewer, drainage, or other infrastructure or

public facilities constructed, acquired, improved, maintained, or

operated by the district shall comply with any subdivision or

other applicable regulations of any municipality in whose

corporate limits or extraterritorial jurisdiction the

infrastructure or public facilities are located.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.106. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.107. LIMITATION ON USE OF EMINENT DOMAIN. The

district may not exercise the power of eminent domain outside the

district to acquire a site or easement for:

(1) a road project authorized by Section 8342.103; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.108. DIVISION OF DISTRICT. (a) The district may be

divided into two or more new districts only if the district:

(1) has no outstanding bonded debt; and

(2) is not imposing ad valorem taxes.

(b) The division procedure is prescribed by Sections 53.030

through 53.041, Water Code.

(c) Any new district created by the division of the district has

all the powers and duties of the district and is subject to all

limitations and conditions provided by this chapter.

(d) A new district created by the division of the district may

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

is not contiguous to the area described by Section 2 of the Act

creating this chapter.

(e) A division of the district may not occur until each

municipality in whose corporate limits or extraterritorial

jurisdiction the district is located has adopted a resolution

consenting to the division.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.109. LIMITATION ON DISSOLUTION OF DISTRICT. (a)

Before the issuance of bonds, the district or any new district

created by the division of the district may not be dissolved

unless the dissolution is approved by:

(1) the board;

(2) the majority owner of the assessed value of the real

property in the district or the new district, as applicable; and

(3) the governing body of each municipality in whose corporate

limits or extraterritorial jurisdiction the district or the new

district is located.

(b) The district or any new district may not be dissolved if it

has outstanding bonded debt unless:

(1) all the property in the district or the new district is

annexed by a municipality;

(2) the dissolution is approved by the governing body of the

municipality; and

(3) the bonded debt and developer reimbursement obligations of

the district or the new district are assumed by the municipality

in whose corporate limits or extraterritorial jurisdiction the

district or the new district is located or by another entity

approved by the municipality.

(c) A dissolution subject to Subsection (b) is effective when

all outstanding bonded debt and developer reimbursement

obligations have been discharged.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.110. DEDICATION OF AIRPORT PROPERTY. The district may

dedicate, by fee or easement, property owned by the district for

any purposes necessary or convenient for the operation, use, or

expansion of a municipal airport.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8342.151. 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 8342.153.

(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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8342.151, 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.153. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 8342.201. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.202. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.

Sec. 8342.203. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

422, Sec. 1, eff. September 1, 2009.