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  S.B. No. 2506
 
 
 
 
AN ACT
  relating to the creation of the Gray County Municipal Utility
  District No. 1; providing authority to impose a tax and issue bonds;
  granting a limited 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 8319 to read as follows:
  CHAPTER 8319. GRAY COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8319.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Gray County Municipal Utility
  District No. 1.
         Sec. 8319.002.  NATURE OF DISTRICT. The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8319.003.  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.
         Sec. 8319.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 8319.003
  until each municipality in whose corporate limits or
  extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         Sec. 8319.005.  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.
         Sec. 8319.006.  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.
  [Sections 8319.007-8319.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8319.051.  GOVERNING BODY; TERMS. (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8319.052, directors serve
  staggered four-year terms.
         Sec. 8319.052.  TEMPORARY DIRECTORS. (a)  On or after the
  effective date of the Act creating this chapter, the owner or owners
  of a majority of the assessed value of the real property 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. The
  commission shall appoint as temporary directors the five persons
  named in the petition.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 8319.003; or
               (2)  the fourth anniversary of the effective date of
  the Act creating this chapter.
         (c)  If permanent directors have not been elected under
  Section 8319.003 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 8319.003; 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 Texas Commission on Environmental
  Quality 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.
  [Sections 8319.053-8319.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8319.101.  GENERAL POWERS AND DUTIES. The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8319.102.  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.
         Sec. 8319.103.  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.
         Sec. 8319.104.  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.
         Sec. 8319.105.  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.
         Sec. 8319.106.  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)  This chapter applies to any new district created by the
  division of the district, and a new district has all the powers and
  duties of the district.
         (c)  Any new district created by the division of the district
  may not, at the time the new district is created, contain any land
  outside the area described by Section 2 of the Act creating this
  chapter.
         (d)  The board, on its own motion or on receipt of a petition
  signed by the owner or owners of a majority of the assessed value of
  the real property in the district, may adopt an order dividing the
  district.
         (e)  The board may adopt an order dividing the district
  before or after the date the board holds an election under Section
  8319.003 to confirm the district's creation.
         (f)  An order dividing the district shall:
               (1)  name each new district;
               (2)  include the metes and bounds description of the
  territory of each new district;
               (3)  appoint temporary directors for each new district
  or provide that the owner or owners of a majority of the assessed
  value of the real property in each new 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; and
               (4)  provide for the division of assets and liabilities
  between or among the new districts.
         (g)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the Texas Commission on Environmental Quality and record the
  order in the real property records of each county in which the
  district is located.
         (h)  Any new district created by the division of the district
  shall hold a confirmation and directors' election as required by
  Section 8319.003. A new district that is not confirmed is subject
  to dissolution under general law.
         (i)  Municipal consent to the creation of the district and to
  the inclusion of land in the district granted under Section
  8319.004 acts as municipal consent to the creation of any new
  district created by the division of the district and to the
  inclusion of land in the new district.
         (j)  Any new district created by the division of the district
  must hold an election as required by this chapter to obtain voter
  approval before the district may impose a maintenance tax or issue
  bonds payable wholly or partly from ad valorem taxes.
         Sec. 8319.107. LIMITATION ON USE OF EMINENT DOMAIN.
  (a)  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 8319.103; or
               (2)  a recreational facility as defined by Section
  49.462, Water Code.
         (b)  The district may not exercise the power of eminent
  domain to acquire land, an easement, or other property that is
  located more than five miles outside the district's boundaries.
  [Sections 8319.108-8319.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8319.151.  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 8319.153.
         (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.
         Sec. 8319.152.  OPERATION AND MAINTENANCE TAX. (a)  If
  authorized at an election held under Section 8319.151, 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.
         Sec. 8319.153.  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.
  [Sections 8319.154-8319.200 reserved for expansion]
  SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
         Sec. 8319.201.  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.
         Sec. 8319.202.  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.
         Sec. 8319.203.  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.
         SECTION 2.  The Gray County Municipal Utility District No. 1
  initially includes all the territory contained in the following
  area:
  Tract NO. 1
  All that certain tract or parcel of land in Sections 117, 118 & 99,
  Block 3, I.& G.N. Survey, Gray County, Texas, being more
  particularly described as follows;
  BEGINNING at a 1" Iron Pipe found for the Southwest corner of said
  Section 99 and Northeast corner of said Section 117;
  THENCE S 00°02'26"E, along the East line of said Section 117 a
  distance of 2644.35 feet to a corner of this tract or parcel and
  being a corner of said Wal-Mart Addition;
  THENCE S 89°19'48"W, along the South line of the Northeast quarter
  of said Section 117 a distance of 2641.67 feet to the Southwest
  corner of this tract or parcel;
  THENCE N 00°03'03"W, along the West line of said Northeast quarter a
  distance of 2635.44 feet to the Northwest corner of said Northeast
  quarter and being a corner of this tract or parcel;
  THENCE N 00°03'40"W, along the west line of the Southeast quarter of
  said Section 118 a distance of 2663.23 feet to the Northwest corner
  of said Southeast quarter and being a corner of this tract or
  parcel;
  THENCE S 89°17'07"W, along the South line of the Northwest quarter
  of said Section 118 a distance of 2642.14 feet to the Southwest
  corner of said Northwest quarter and being a corner of this tract or
  parcel;
  THENCE N 00°03'39"W, along the West line of said Section 118 and
  being the center line of a State of Texas Right of way Easement
  recorded in Volume 222, Page 456, Deed Records, Gray County, Texas,
  a distance of 2670.07 feet to the Northwest corner of this tract or
  parcel and being the Northwest corner of said Section 118;
  THENCE N 89°26'01"E, along the North line of said Section 118 a
  distance of 5284.13 feet to a 1 1/2" Iron Pipe found for a corner of
  this tract or parcel and being the Northeast corner of said Section
  118;
  THENCE N 89°26'01"E, along the North line of said Section 99, at
  2689.59 feet pass a Iron Rod with Cap found for the Southwest corner
  of Walnut Creek Addition, at 4653.89 feet pass a Iron Rod found for
  the Southeast corner of said Walnut Creek Addition and continuing a
  total distance of 5200.16 feet to the Northeast corner of this tract
  or parcel on the West Right of Way of State Highway 70;
  THENCE S 00°09'09"E, along the West Right of Way of State Highway 70
  recorded in Volume 126, Page 298, Deed Records, Gray County, Texas,
  a distance of 1632.06 feet to a corner of this tract or parcel;
  THENCE, along said West Right of Way, being a tangent curve to the
  right having a Delta angle of 30°00'00", a Radius of 2804.79 feet,
  and an Arc Length of 1468.58 feet to a corner of this tract or
  parcel;
  THENCE S 29°53'14"W, along said West Right of Way, a distance of
  2624.82 feet to a corner of this tract or parcel;
  THENCE S 89°08'13"W, along the South line of said Section 99, a
  distance of 3518.98 feet to the POINT of BEGINNING and containing
  1220.21 Acres, more or less.
  Tract No. 2
  All that certain tract or parcel of land in Section 99, Block 3, I.&
  GEN.. Survey, Gray County, Texas, being more particularly described
  as follows;
  BEGINNING at a point on the East line of said Section 99 from whence
  a 1 1/4" Iron Pipe found for the Southeast corner of said Section 99
  bears S 00°09'09"E a distance of 1579.46 feet;
  THENCE N 60°06"48"W, along the Northerly Right of way of Loop 171
  recorded in Volume 337, Page 5, Deed Records, Gray County, Texas, a
  distance of 492.62 feet to a highway monument found for a corner of
  this tract or parcel;
  THENCE N 15°34'30"W, along said Right of Way, a distance of 141.09
  feet to a highway monument found for a corner of this tract or
  parcel;
  THENCE N 29°53'14"E, along the Easterly Right of Way of State
  Highway 70 recorded in Volume 126, Page 298, Deed Records, Gray
  County, Texas, a distance of 263.93 feet to a corner of this tract
  or parcel;
  THENCE, along said Right of Way, being a tangent curve to the left
  having a Delta angle of 18°22'28", a Radius of 2924.79 feet and an
  Arc Length of 937.97 feet to the most Northerly corner of this tract
  or parcel;
  THENCE S 00°09'09"E, along the East line of said Section 99, a
  distance of 1484.10 feet to the POINT of BEGINNING and containing
  7.47 Acres, more or less.
  Tract No. 3
  All that certain tract or parcel of land in Section 99, Block 3, I.&
  G.N. Survey, Gray County, Texas, being more particularly described
  as follows;
  BEGINNING at a point on the South line of said Section 99 from
  whence a 1 1/4" Iron Pipe found for the Southeast corner of said
  Section 99 bears N 89°08'13"E a distance of 930.49 feet;
  THENCE S 89°08'13"W, along the South line of said Section 99, a
  distance of 679.78 feet to Southwest corner of this tract or parcel;
  THENCE N 29°53'14"E, along the East Right of Way of State Highway 70
  recorded in Volume 126, Page 298, Deed Records, Gray County, Texas,
  a distance of 1939.41 feet to a highway monument found for a corner
  of this tract or parcel;
  THENCE N 74°33'57"E, along the Southerly Right of way of Loop 171
  recorded in Volume 337, Page 5, Deed Records, Gray County, Texas, a
  distance of 141.93 feet to a highway monument found for a corner of
  this tract or parcel;
  THENCE S 60°08'25"E, along said Right of Way, a distance of 580.14
  feet to a corner of this tract or parcel;
  THENCE S 00°09'09"E, along the East line of said Section 99, a
  distance of 463.19 feet to a corner of this tract or parcel;
  THENCE S 02°50'51"W a distance of 99.97 feet to a corner of this
  tract or parcel;
  THENCE S 08°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 14°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 20°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 26°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 32°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 38°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 44°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 50°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel
  THENCE S 56°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 62°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 68°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 74°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 80°50'51"W a distance of 100.00 feet to a corner of this
  tract or parcel;
  THENCE S 86°28'51"W a distance of 75.04 feet to the POINT of
  BEGINNING and containing 37.40 Acres, more or less.
  SAID TRACTS CONTAIN 1,265.08 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, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2506 passed the Senate on
  April 30, 2009, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2506 passed the House on
  May 25, 2009, by the following vote:  Yeas 141, Nays 0, one present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor