H.B. No. 4097

	AN ACT
	relating to the creation of the Gunter Municipal Utility District
	No. 2; providing authority to impose taxes and issue bonds.
	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 8239 to read as follows:
	CHAPTER 8239. GUNTER MUNICIPAL UTILITY DISTRICT NO. 2
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 8239.001.  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 Gunter Municipal Utility
	District No. 2.
	Sec. 8239.002.  NATURE OF DISTRICT. The district is a
	municipal utility district in Grayson County created under and
	essential to accomplish the purposes of Section 59, Article XVI,
	Texas Constitution.
	Sec. 8239.003.  CONFIRMATION ELECTION REQUIRED. The board
	shall hold an election to confirm the creation of the district as
	provided by Section 49.102, Water Code.
	Sec. 8239.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
	All land and other property included in the district will benefit
	from the improvements and services to be provided by the district.
	(b)  The district is created to accomplish:
	(1)  the purposes of a municipal utility district as
	provided by general law; and
	(2)  to the extent authorized by Section 52, Article
	III, Texas Constitution, the construction, acquisition,
	improvement, maintenance, or operation of macadamized, graveled,
	or paved roads or improvements in aid of those roads.
	Sec. 8239.005.  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 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 or collect an assessment or tax; or
	(4)  legality or operation.
	Sec. 8239.006.  ANNEXATION BY CITY OF GUNTER.
	Notwithstanding any other law, if all of the territory of the
	district is annexed by the City of Gunter into the corporate limits
	of that municipality before the date of the election under Section
	8239.003, the district may not be dissolved and shall continue
	until the district is dissolved under Section 43.074, Local
	Government Code.
	[Sections 8239.007-8239.050 reserved for expansion]
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 8239.051.  DIRECTORS; TERMS.  (a)  The district is
	governed by a board of five directors.
	(b)  Except as provided by Section 8239.053, directors serve
	staggered four-year terms.
	Sec. 8239.052.  ELECTION OF DIRECTORS. On the uniform
	election date in May of each even-numbered year, the appropriate
	number of directors shall be elected.
	Sec. 8239.053.  INITIAL DIRECTORS.  (a)  The initial board
	consists of:
	(1)  Jennifer Milstead;
	(2)  Collette Sallas;
	(3)  Eddie Collins;
	(4)  Herschel Pierce; and
	(5)  Todd Cook.
	(b)  Unless the initial board otherwise agrees, the initial
	directors shall draw lots to determine which two directors shall
	serve until the first regularly scheduled election of directors and
	which three directors shall serve until the second regularly
	scheduled election of directors.
	Sec. 8239.054.  CONSENT OF MUNICIPALITY REQUIRED. The
	initial directors may not hold an election under Section 8239.003
	until:
	(1)  all of the territory of the district is included in
	the corporate limits of the City of Gunter; and
	(2)  the City of Gunter has adopted a resolution
	consenting to the creation of the district.
	[Sections 8239.055-8239.100 reserved for expansion]
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 8239.101.  MUNICIPAL UTILITY DISTRICT POWERS AND
	DUTIES.  (a)  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.
	(b)  The district has the powers and duties necessary to
	accomplish the purposes for which the district is created.
	(c)  Notwithstanding Subsection (a), the district may not
	act as a retail provider of water or wastewater service.
	(d)  The district shall make the district's water and
	wastewater facilities available to an entity holding the applicable
	certificate of public convenience and necessity.
	Sec. 8239.102.  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.
	(b)  A road project must meet all applicable construction
	standards, regulations, and ordinances of the municipality or
	county in whose jurisdiction the district is located.
	(c)  If a portion of the territory of the district is
	excluded from the corporate limits of the City of Gunter, the
	district shall:
	(1)  improve, maintain, repair, and operate the roads
	located in that portion of territory in accordance with the
	ordinances and rules of the political subdivision possessing
	jurisdiction over the roads in that portion of territory; and
	(2)  pay the entire cost of performing the district's
	duties under Subdivision (1).
	Sec. 8239.103.  COMPLIANCE WITH MUNICIPAL CONSENT
	ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section
	54.016, Water Code, the district shall comply with all applicable
	requirements of any ordinance or resolution adopted by the
	governing body of the municipality that consents to the creation of
	the district or to the inclusion of lands within the district.
	[Sections 8239.104-8239.150 reserved for expansion]
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 8239.151.  ELECTIONS REGARDING TAXES OR BONDS. (a)  The
	district may issue, without an election, bonds and other
	obligations secured by revenue or contract payments from any source
	other than ad valorem taxation.
	(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 operation and maintenance tax or
	issue bonds payable from ad valorem taxes.
	Sec. 8239.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
	authorized at an election held under Section 8239.151, 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.
	[Sections 8239.153-8239.200 reserved for expansion]
	SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
	Sec.  8239.201.  AUTHORITY TO ISSUE BONDS AND OTHER
	OBLIGATIONS. (a)  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
	those sources, to pay for any authorized district purpose.
	(b)  The district may not issue bonds to finance projects
	authorized by Section 8239.102 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 8239.102 may not exceed one-fourth
	of the assessed value of the real property in the district.
	Sec. 8239.202.  TAXES FOR BONDS. At the time bonds payable
	wholly or partly from ad valorem taxes are issued:
	(1)  the board shall impose a continuing direct annual
	ad valorem tax, without limit as to rate or amount, for each year
	that all or part of the bonds are outstanding; and
	(2)  the district annually shall impose an ad valorem
	tax on all taxable property in the district in an amount sufficient
	to:
	(A)  pay the interest on the bonds as the interest
	becomes due;
	(B)  create a sinking fund for the payment of the
	principal of the bonds when due or the redemption price at any
	earlier required redemption date; and
	(C)  pay the expenses of imposing the taxes.
	SECTION 2.  The Gunter Municipal Utility District No. 2
	initially includes all the territory contained in the following
	area:
	BEING a tract of land located in the W.H. CAMPBELL SURVEY,
	ABSTRACT NO. 243, W.M. LAKIN SURVEY, ABSTRACT NO. 714, JOHN
	McMULLEN AND JAMES McGLOIN SURVEY, ABSTRACT NO. 761, ROBERT MASON
	SURVEY, ABSTRACT NO. 784 and the THOMAS POLK SURVEY, ABSTRACT NO.
	938, Grayson County, Texas and being all of a tract of land
	described as Tract 1 and being part of a tract of land described as
	Tract 2 in Deed to Crooked Cross Partners, LTD., recorded in Volume
	3491, Page 263, Deed Records, Grayson County, Texas and being more
	particularly described as follows:
	BEGINNING at a PK nail found in the approximate center line of
	Marilee Road, at the Southwest corner of said Tract 2;
	THENCE North 00 degrees 11 minutes 49 seconds West, a
	distance of 2,905.02 feet to a railroad tie fence post found for
	corner;
	THENCE North 00 degrees 20 minutes 00 seconds West, a
	distance of 1,448.81 feet to a 1/2 inch iron rod found at the
	Northeast corner of a tract of land described in Deed to D.B. Tate,
	Jr. and Betty Jane Tate, recorded in Volume 2460, Page 683, Deed
	Records, Grayson County, Texas;
	THENCE North 42 degrees 04 minutes 28 seconds East, a
	distance of 3,007.40 feet to a 1/2 inch iron rod found at the
	Southwest corner of a tract of land described in deed to Longhorn
	Trail Ranch II, LTD., recorded in Volume 3768, Page 454, Deed
	Records, Grayson County, Texas;
	THENCE South 89 degrees 02 minutes 27 seconds East, a
	distance of 1,756.30 feet to a 1/2 inch iron rod found at the most
	Easterly Northeast corner of said Tract 2 and the Northwest corner
	of said Tract 1;
	THENCE South 88 degrees 58 minutes 07 seconds East, a
	distance of 2,459.10 feet to a 1/2 inch iron rod with a yellow
	plastic camp stamped "#5439" found in the approximate centerline of
	Longhorn Trail Drive at the Northeast corner of said Tract 1 and the
	Northwest corner of a tract of land described as Tract 2 in Deed to
	Jenchin Partners, LTD., recorded in Volume 3014, Page 569, Deed
	Records, Grayson County, Texas;
	THENCE South 00 degrees 33 minutes 16 seconds East, along the
	West line of said Jenchin Tract 2 and said approximate centerline of
	said Longhorn Trail Drive, a distance of 2,473.20 feet to a 5/8 inch
	iron rod found at the Southeast corner of said Tract 1 and the
	Northeast corner of a tract of land described in Deed to J.B. Hunn
	and wife, Mitzi M. Hunn, recorded in Volume 2625, Page 182, Deed
	Records, Grayson County, Texas;
	THENCE North 89 degrees 28 minutes 11 seconds West, a
	distance of 2,498.95 feet to a 5/8 inch iron rod found at the
	Southwest corner of said Tract 1 in the East line of said Tract 2 at
	the Northwest corner of said Hunn tract
	THENCE South 00 degrees 32 minutes 49 seconds West, a
	distance of 2,235.87 feet to a metal fence post found at the
	Southwest corner of said Hunn tract and the Northwest corner of a
	tract of a tract of land described in Deed to Thomas O. Eller,
	recorded in Volume 1281, Page 315, Deed Records, Grayson County,
	Texas;
	THENCE South 00 degrees 08 minutes 34 seconds East, a
	distance of 1,878.75 feet to a 1/2 inch iron rod found in the
	approximate centerline of said Marilee Road at the Southeast corner
	of said Tract 2 and the Southwest corner of said Eller tract;
	THENCE North 89 degrees 11 minutes 55 seconds West, a
	distance of 3,720.37 feet To the POINT OF BEGINNING and containing
	657.166 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,
	Government Code.
	(b)  The governor, one of the required recipients, has
	submitted the notice and Act to the Texas Commission on
	Environmental Quality.
	(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
	and accomplished.
	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, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 4097 was passed by the House on May
	11, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4097 was passed by the Senate on May
	23, 2007, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor