CHAPTER 8254. PRESTON SUMMIT MUNICIPAL UTILITY DISTRICT NO. 1 OF GRAYSON COUNTY
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8254. PRESTON SUMMIT MUNICIPAL UTILITY DISTRICT NO. 1 OF
GRAYSON COUNTY
For contingent expiration of this chapter, see Section 8254.003.
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8254.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the Preston Summit Municipal Utility
District No. 1 of Grayson County.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.002. NATURE OF DISTRICT. The district is a municipal
utility district in Grayson 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.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.003. CONFIRMATION ELECTION REQUIRED. If the creation
of the district is not confirmed at a confirmation election held
under Section 8254.023 before September 1, 2011:
(1) the district is dissolved September 1, 2011, except that the
district shall:
(A) pay any debts incurred;
(B) transfer to Grayson 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, 2014.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.004. 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;
(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.
1139, Sec. 1, eff. September 1, 2007.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
For expiration of this subchapter, see Sec. 8254.025.
Sec. 8254.021. TEMPORARY DIRECTORS. (a) On or after September
1, 2007, a person who owns land in the district may submit a
petition to the Texas Commission on Environmental Quality
requesting that the commission appoint as temporary directors the
five persons named in the petition.
(b) The commission shall appoint as temporary directors the five
persons named in the first petition received by the commission
under Subsection (a).
(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 8254.023; or
(2) the date this chapter expires under Section 8254.003.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.022. 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 meet at a location in the district agreeable to a
majority of the directors. 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.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.023. CONFIRMATION AND INITIAL DIRECTORS' ELECTION;
ANNEXATION BY CITY. (a) 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.
(b) The temporary directors may not hold the election until the
City of Gunter has annexed into its corporate limits all
territory described by Section 2 of the Act creating this
chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.024. INITIAL ELECTED DIRECTORS; TERMS. The directors
elected under Section 8254.023 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.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.025. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2014.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8254.051. 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.
1139, Sec. 1, eff. September 1, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8254.101. 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.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.102. WATER AND WASTEWATER FACILITIES AND SERVICES.
(a) The district shall make available any district water or
wastewater facility to each person that holds a certificate of
convenience and necessity for land in the district.
(b) The district may not provide retail water or wastewater
services.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.103. 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 turnpikes, or improvements in aid of
those roads or turnpikes, inside the district.
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.104. MAINTENANCE AND REPAIR OF ROADS IN TERRITORY
EXCLUDED FROM CITY. If the City of Gunter excludes district
territory from the city's corporate limits, the district shall
maintain, improve, operate, and repair any road located in that
territory in accordance with the ordinances and rules of each
political subdivision in whose jurisdiction the road is located.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.105. 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) Any new district created by the division of the district may
not, at the time the new district is created, contain any land:
(1) outside the area described by Section 2 of the Act creating
this chapter; or
(2) outside the corporate limits of the city of Gunter.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.106. COMPLIANCE WITH MUNICIPAL CONSENT RESOLUTIONS.
The district shall comply with all applicable requirements of any
ordinance or resolution adopted by the governing body of each
municipality in whose corporate limits or extraterritorial
jurisdiction the district is located.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
Sec. 8254.107. LIMITATION ON ANNEXATION. (a) The district may
not add land to the district under Subchapter J, Chapter 49,
Water Code, if the land is located outside the corporate limits
of the city of Gunter.
(b) Section 43.075, Local Government Code, does not apply to the
district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8254.151. TAX TO REPAY BONDS. The district may impose a
tax to pay the principal of or interest on bonds or other
obligations issued under Section 8254.201.
Added by Acts 2007, 80th Leg., R.S., Ch.
1139, Sec. 1, eff. September 1, 2007.
SUBCHAPTER E. BONDS
Sec. 8254.201. 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 a project under
Section 8254.101 or 8254.103.
(b) The district may not issue bonds or other obligations to
finance projects authorized by Section 8254.103 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.
(c) Bonds or other obligations issued or incurred to finance
projects authorized by Section 8254.103 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.
1139, Sec. 1, eff. September 1, 2007.