CHAPTER 8223. MCKINNEY MUNICIPAL UTILITY DISTRICT NO. 1 OF COLLIN COUNTY

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8223. MCKINNEY MUNICIPAL UTILITY DISTRICT

NO. 1 OF COLLIN COUNTY

For contingent expiration of this chapter, see Section 8223.003.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8223.001. 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 McKinney Municipal Utility District No.

1 of Collin County.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.002. NATURE OF DISTRICT. The district is a municipal

utility district in Collin County created under and essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.003. CONFIRMATION ELECTION REQUIRED. If the creation

of the district is not confirmed at a confirmation election held

under Section 8223.024 before September 1, 2011:

(1) the district is dissolved September 1, 2011, except that:

(A) any debts incurred shall be paid;

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

transferred to Collin 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, 2014.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.004. 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 of the district, as described

by 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;

(3) the validity of the district's bonds, notes, or

indebtedness; or

(4) the legality or operation of the district or the board.

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

943, Sec. 1, eff. September 1, 2007.

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Section 8223.026.

Sec. 8223.021. TEMPORARY DIRECTORS. (a) On or after September

1, 2007, a person who owns land in the district may petition the

Texas Commission on Environmental Quality to appoint as temporary

directors of the district the five persons listed in the

petition.

(b) The commission shall appoint as temporary directors the

persons listed in a petition received by the commission under

Subsection (a). If the commission receives more than one

petition for the district, the commission shall appoint the

directors listed in the first petition the commission receives.

(c) If a temporary director fails to qualify for office, the

commission shall appoint a person to fill the vacancy.

(d) Temporary directors serve until the earlier of:

(1) the date directors are elected under Section 8223.024; or

(2) the date this chapter expires under Section 8223.003.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS.

As soon as practicable after all the temporary directors of the

district have qualified under Section 49.055, Water Code, the

temporary directors of the district shall meet at a location in

the district agreeable to a majority of the directors of the

district. At the meeting, the temporary directors shall elect

officers from among the temporary directors and conduct any other

district business.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.023. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors of the district may not hold an election under Section

8223.024 until each municipality in whose corporate limits or

extraterritorial jurisdiction the district is located, if any,

has adopted a resolution consenting to the creation of the

district.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.024. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.

The temporary directors of the district 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.

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.025. INITIAL ELECTED DIRECTORS; TERMS. The directors

of the district elected under Section 8223.024 shall draw lots to

determine which two shall serve until the first regularly

scheduled election of directors under Section 8223.052 and which

three shall serve until the second regularly scheduled election

of directors.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.026. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2014.

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

943, Sec. 1, eff. September 1, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8223.051. DIRECTORS; 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.

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.052. 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 2007, 80th Leg., R.S., Ch.

943, Sec. 1, eff. September 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8223.101. GENERAL POWERS. 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.

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.102. ROAD PROJECTS. (a) To the extent authorized by

Section 52, Article III, Texas Constitution, the district may

construct, acquire, improve, maintain, or operate macadamized,

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

inside the district.

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

construction standards, zoning and subdivision requirements, and

regulatory ordinances or orders of each municipality in whose

corporate limits or extraterritorial jurisdiction the district is

located.

(c) If the district is located outside the territorial

jurisdiction of a municipality, a road project must meet all

applicable construction standards, zoning and subdivision

requirements, and regulatory ordinances of each county in which

the district is located.

(d) 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.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.103. COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR

RESOLUTIONS. The district shall comply with all applicable

requirements of any ordinance or resolution adopted by the city

council of the City of McKinney.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.104. DIVISION OF DISTRICT. (a) The district may be

divided into two 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.

(d) A new district, at the time it is created by the division of

the district, may not contain land outside the area described by

Section 2 of the Act creating this chapter.

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

943, Sec. 1, eff. September 1, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8223.151. TAX TO REPAY BONDS. The district may impose a

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

Section 8223.201.

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

943, Sec. 1, eff. September 1, 2007.

Sec. 8223.152. 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; or

(4) a person who provides to the public cable television or

advanced telecommunications services.

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

943, Sec. 1, eff. September 1, 2007.

SUBCHAPTER E. BONDS

Sec. 8223.201. 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, to finance the

construction, maintenance, or operation of projects under

Sections 8223.101 and 8223.102.

(b) The district may not issue bonds to finance projects

authorized by Section 8223.102 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.

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

projects authorized by Section 8223.102 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.

943, Sec. 1, eff. September 1, 2007.