H.B. No. 3574
relating to the creation of the Dallas County Municipal Utility
District No. 3; providing authority to impose a tax and issue bonds;
granting the power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8141 to read as follows:
CHAPTER 8141. DALLAS COUNTY MUNICIPAL UTILITY DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8141.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
(2) "Director" means a member of the board.
(3) "District" means the Dallas County Municipal
Utility District No. 3.
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.
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,
(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
(2) this chapter expires September 1, 2010.
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
(2) the right of the district to impose taxes; or
(3) the legality or operation of the board.
[Sections 8141.005-8141.020 reserved for expansion]
SUBCHAPTER A1. TEMPORARY PROVISIONS
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
(2) the date this chapter expires under Section
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.
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.
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.
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.
Sec. 8141.026. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2010.
[Sections 8141.027-8141.050 reserved for expansion]
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.
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.
[Sections 8141.053-8141.100 reserved for expansion]
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.
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.
Sec. 8141.103. ROAD CONTRACTS. The district may contract
for a road project in the manner provided by Subchapter I, Chapter
49, Water Code.
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
(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.
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.
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
(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.
[Sections 8141.107-8141.150 reserved for expansion]
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
(b) Section 49.107(f), Water Code, does not apply to
reimbursements for projects constructed or acquired under Section
Sec. 8141.152. TAX TO REPAY BONDS. The district may impose
a tax to pay the principal of and interest on bonds issued under
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
(5) a person who provides to the public advanced
[Sections 8141.154-8141.200 reserved for expansion]
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
(1) the construction, maintenance, or operation of
projects under Sections 8141.102 and 8141.104; or
(2) the district's contractual obligations under
(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
(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.
[Sections 8141.202-8141.250 reserved for expansion]
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
(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
(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
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
(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
(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
(A) the Texas Commission on Environmental
(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.
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
(2) appoint five directors for each of the other new
(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
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
(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.
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
SECTION 2. The Dallas County Municipal Utility District No.
3 initially includes all the territory contained in the following
Being a 320.42 acre tract of land lying and being situated in
the G.W. Scott Survey, Abstract 1273, and the Robert Sloan Survey,
Abstract 1271, Dallas County, Texas, and being a portion of the
tract of land conveyed to Hemyari Kourosh according to the deed
filed of record in Volume 2000173, Page 3869, Deed Records of Dallas
Beginning at a point in the most easterly line of the said
Kourosh tract, from which the most northeasterly corner of said
Kourosh tract bears North 33° 30' 49" west, a distance of 594.73
Thence South 33°30'49" East, a distance of 734.38 feet to a point;
Thence North 61°23'35" East, a distance of 290.61 feet to a point;
Thence South 30°24'29" East, a distance of 1492.63 feet to a point;
Thence South 30°22'42" East, a distance of 2122.82 feet to a point in
the north line of Pleasant Run Road;
Thence South 59°40'41" West, along the north line of said road, a
distance of 432.63 feet to a point;
Thence North 28°12'39" West, a distance of 1044.73 feet to a point;
Thence South 59°29'32" West, a distance of 3517.87 feet to a point;
Thence North 28°52'54" West, a distance of 1086.51 feet to a point;
Thence South 59°33'45" West, a distance of 2820.16 feet to a point;
Thence North 30°39'30" West, a distance of 319.83 feet to a point,
and the beginning of a curve to the left;
Thence along said curve having a radius of 2740.00 feet, a chord
bearing of North 22°27'37" East, a chord length of 1441.59 feet, and
an arc length of 1458.76 feet, to a point;
Thence North 60°03'47" East, a distance of 1923.47 feet to a point,
and the beginning of a curve to the left;
Thence along said curve having a radius of 2740.00 feet, a chord
bearing of North 33°34'54" East, a chord length of 2443.57 feet, and
an arc length of 2532.79 feet, to a point;
Thence North 60°10'01" East, a distance of 1105.17 feet to the POINT
OF BEGINNING, and containing 320.42 acres of land, more or less.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 3574 was passed by the House on May
20, 2005, by the following vote: Yeas 139, Nays 0, 2 present, not
Chief Clerk of the House
I certify that H.B. No. 3574 was passed by the Senate on May
24, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate