H.B. No. 4069
 
 
 
 
AN ACT
  relating to the creation of specific water control and improvement
  districts and municipal utility districts; providing authority to
  impose taxes and issue bonds; granting the power of eminent domain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  DOUBLE PLATINUM RANCH WATER
  CONTROL AND IMPROVEMENT DISTRICT NO. 1 OF GRAYSON COUNTY
         SECTION 1.01.  Subtitle I, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 9206 to read as follows:
  CHAPTER 9206. DOUBLE PLATINUM RANCH WATER CONTROL AND IMPROVEMENT
  DISTRICT NO. 1 OF GRAYSON COUNTY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 9206.001.  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 Double Platinum Ranch Water
  Control and Improvement District No. 1 of Grayson County.
         Sec. 9206.002.  NATURE OF DISTRICT. The district is a water
  control and improvement district in Grayson County created under
  and essential to accomplish the purposes of Section 59, Article
  XVI, Texas Constitution.
         Sec. 9206.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 9206.064 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 Grayson 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.
         Sec. 9206.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 1.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 1.02
  of the article 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
  other indebtedness; or
               (4)  the legality or operation of the district or the
  board.
         Sec. 9206.005.  ANNEXATION BY CITY OF GUNTER. (a)  
  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 held to confirm
  the creation of the district, the district may not be dissolved and
  shall continue until the district is dissolved under Section
  43.074, Local Government Code.
         (b)  Any future annexation or inclusion of additional
  territory into a district governed by this chapter may not occur
  unless the City of Gunter is allowed to voluntarily annex the same
  territory into its corporate limits.
  [Sections 9206.006-9206.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 9206.051.  DIRECTORS; TERMS.  (a)  The district is
  governed by a board of five directors.
         (b)  Except as provided by Section 9206.061 of this code and
  Section 49.102, Water Code, directors serve staggered four-year
  terms, with the terms of two or three directors expiring June 1 of
  each even-numbered year.
         Sec. 9206.052.  ELECTION OF DIRECTORS. On the uniform
  election date in May of each even-numbered year, the appropriate
  number of directors shall be elected.
  [Sections 9206.053-9206.060 reserved for expansion]
  SUBCHAPTER B-1.  TEMPORARY PROVISIONS
         Sec. 9206.061.  INITIAL 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 initial directors the
  five persons named in the petition.
         (b)  The commission shall appoint as initial directors the
  five persons named in the first petition received by the commission
  under Subsection (a).
         (c)  If an initial director fails to qualify for office, the
  commission shall appoint a person to fill the vacancy.
         (d)  Initial directors serve until the earlier of:
               (1)  the date the first directors are elected at the
  confirmation election under Section 9206.064; or
               (2)  the date this subchapter expires under Section
  9206.066.
         Sec. 9206.062.  ORGANIZATIONAL MEETING OF INITIAL
  DIRECTORS. As soon as practicable after all the initial directors
  have qualified under Section 49.055, Water Code, the initial
  directors shall meet at a location in the district agreeable to a
  majority of the directors. At the meeting, the initial directors
  shall elect officers from among the initial directors and conduct
  any other district business.
         Sec. 9206.063.  CONSENT OF MUNICIPALITY REQUIRED. The
  initial directors may not hold an election under Section 9206.064
  until all of the territory of the district is included in the
  corporate limits of the City of Gunter.
         Sec. 9206.064.  CONFIRMATION AND INITIAL DIRECTORS'
  ELECTION.  The initial 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. 9206.065.  INITIAL ELECTED DIRECTORS; TERMS. The
  directors elected under Section 9206.064 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.
         Sec. 9206.066.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 9206.067-9206.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 9206.101.  WATER CONTROL AND IMPROVEMENT DISTRICT
  POWERS AND DUTIES.  (a)  The district has the powers and duties
  provided by the general law of this state, including Chapters 49 and
  51, Water Code, applicable to water control and improvement
  districts created under Section 59, Article XVI, Texas
  Constitution.
         (b)  Notwithstanding Subsection (a), the district may not
  act as a retail provider of water or wastewater services.
         (c)  The district shall make its water and wastewater
  facilities available to an entity holding the applicable
  certificate of convenience and necessity.
         Sec. 9206.102.  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 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 the municipality in whose corporate limits
  or extraterritorial 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. 9206.103.  DIVISION OF DISTRICT.  (a)  The district may
  be divided into two new districts only if:
               (1)  the district has no outstanding bonded debt;
               (2)  the district is not imposing ad valorem taxes; and
               (3)  each new district is within the corporate limits
  of the City of Gunter.
         (b)  The division procedure is prescribed by Sections 53.030
  through 53.041, Water Code.  Sections 51.748 through 51.753, Water
  Code, do not apply to the district.
         (c)  Any new district created by the division of the district
  has all the powers and duties of the district.
         (d)  At the time of creation, any new district created by the
  division of the district may not contain any land outside the area
  described by Section 1.02 of the article creating this chapter.
  [Sections 9206.104-9206.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 9206.151.  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 9206.201.
  [Sections 9206.152-9206.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 9206.201.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS. (a) The district may issue bonds or other obligations
  as provided by Chapters 49 and 51, Water Code, to finance the
  construction, maintenance, or operation of a project under Section
  9206.101 or 9206.102.
         (b)  The district may not issue bonds to finance projects
  authorized by Section 9206.102 unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election called for that purpose.
         (c)  Bonds or other obligations issued or incurred to finance
  projects authorized by Section 9206.102 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 1.02.  The Double Platinum Ranch Water Control and
  Improvement District No. 1 of Grayson County includes all the
  territory contained in the following area:
  TRACT ONE:
         All that certain tract or parcel of land situated in the John
  Palms Survey, Abstract Number 926, County of Grayson, State of
  Texas, said tract being part of a called 197.3 acre tract as
  described in Deed to Dryden Dorchester Ltd., filed 27 December
  2000, and Recorded in Volume 3014, Page 743 of the Deed Records of
  the County of Grayson, State of Texas, and being more fully
  described as follows:
         BEGINNING for the northeast corner of the tract being herein
  at a Wood Fence corner Post, said post being the northeast corner of
  said Dryden tract, and the southeast corner of a tract as described
  in Deed to Gordon W. Doodier et ux, Delores Goodier, filed 14
  January 1971, and Recorded in Volume 1179, Page 63 of said Deed
  Records, said post also being on a west line of a called 1022 acre
  tract as described in Tract 7 in Deed to Jeribeth Sharp, filed 30
  June 1998, and Recorded in Volume 2668 Page 09 of said Deed Records;
         THENCE South 00 degrees 20 minutes 01 seconds East, with the
  east line of said Dryden tract, and west line of said Sharp tract, a
  distance of 3318.06 feet to a set ½ inch Steel Square Tubing for the
  southeast corner of said Dryden tract, and an ell corner of said
  Sharp tract;
         THENCE South 88 degrees 45 minutes 58 8 seconds West, with the
  south line at said Dryden tract, a distance of 2576.18 feet to a set
  1\2 inch Steel Square Tubing for the southwest corner of said Dryden
  tract, and an ell corner of said Sharp tract,
  Thence: North 00 degrees 23 minutes 33 seconds West, with the west
  line of said Dryden tract, a distance of 3325.00 feet to a found ½
  inch Steel Rebar at the base of a wood fence corner post, being an
  ell corner of said Dryden tract and Sharp tract and the Palms
  Survey, and being the northeast corner of the John D. Nelson Survey,
  Abstract Number 902;
         THENCE South 89 degrees 45 minutes 03 seconds West, with a
  wire fence line, and a south line of said Dryden tract, and a line of
  said Sharp tract, a distance of 790.04 feet to a Wood Fence post for
  the southwest corner of said Dryden tract, an ell corner of said
  Palms Survey, and the southeast corner of the Antonia Hernandez
  Survey, Abstract Number 489;
         THENCE North, a distance of 26.12 feet to a set ½ inch Steel
  Square Tubing Ike the northwest corner of said Dryden tract, and the
  southwest corner of a tract described in Deed to Marjoriet Limited,
  filed 24 March 1999, and Recorded in Volume 2769 Page 624 of said
  Deed Records;
         THENCE North 89 degrees 45 minutes 03 seconds East, with the
  north line of said Dryden tact, and the south line of said Marjoriet
  tract, a distance of 789.43 feet to a Wood Fence corner Post for a
  corner;
         THENCE North 89 degrees 30 minuses 06 seconds East, with the
  north line of said Dryden tract, and passing the southeast corner of
  said Marjoriet tract, and the southwest corner of said Goodier
  tract, and continuing on said course for a total distance of 2579.75
  feet to the POINT OF BEGINNING and containing 197.783 acres of land.
  TRACT TWO:
         Being a 1,022.20 acre tract of land situated in the John Palms
  Survey, Abstract No. 926, and the John D. Nelson Survey, Abstract
  No. 902, and being that certain tract of land conveyed to as Tract
  I, to Marita Wiseman Sharp, Marita Wiseman Sharp Grantor Trust, and
  Billy Jack Sharp Grantor Trust, by deed recorded in Volume 2427,
  Page 448, and also conveyed as Tract 7, to Billy Jack Sharp Grantor
  Trust, by deed recorded in Volume 2668, Page 00009, all of the Deed
  Records of Grayson County, Texas, and being more particularly
  described by metes and bounds as follows:
         BEGINNING at a 1/2 inch iron rod set for corner, said point
  being the southeast corner of said Billy Jack Sharp Grantor Trust
  tract, and being at the centerline intersection more or less, of
  McDonald Road, and Kimberlin Road;
         THENCE North 86°52'06" West, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and the centerline more or
  less of said Kimberlin Road, and along the south line of said Palms
  Survey, passing the southwest corner of said Palms Survey, same
  being the southeast corner of said Nelson Survey, and continuing
  along the south line of said Nelson Survey, a distance of 6400.79
  feet to a 1/2 inch iron rod set for corner, said point being in the
  centerline of Kimberlin Road more of less, said point being the
  southwest corner of said Billy Jack Sharp Grantor Trust tract, and
  being the southeast corner of a called 1073.77 acre tract of land
  conveyed to Davidson Land and Cattle Company, by deed recorded in
  Volume 2235, Page 583, of the Deed Records of Grayson County, Texas;
         THENCE North 02°35'02" East, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and said called 1073.77 acre
  tract, a distance of 3806.58 feet to a 1/2 inch iron rod found for
  corner;
         THENCE North 85°53'34" West, continuing along the common line
  of said Billy Jack Sharp Grantor Trust tract, and said called
  1073.77 acre tract, a distance of 150.50 feet to a 1/2 inch iron rod
  found for corner;
         THENCE North 02°33'45" East, continuing along the common line
  of said Billy Sank Grantor Trust tract, and said called 1073.77 acre
  tract, a distance of 1112.85 feet to a 1/2 inch iron rod found for
  corner;
         THENCE South 87°0916' East, continuing along the common line
  of said Billy Jack Sharp Grantor Trust tract, and said called
  1073.77 acre tract, a distance of 149.97 feet to a 1/2 inch iron rod
  found for corner;
         THENCE North 02°38'21" East, continuing along the common line
  of said Billy Jack Sharp Grantor Trust tract, and said called
  1073.77 acre tract, a distance of 2500.00 feet to a 1/2 inch iron
  rod found for corner, said point being in the north line of said
  Nelson Survey, and the south line of Antonio Hernandez Survey,
  Abstract No. 489, and being in the south line of a called 300 acre
  tract of land conveyed to Lucian Touchtone, et ux, by deed recorded
  in Volume 1013, Page 677, of the Deed Records of Grayson County,
  Texas, and being the northeast corner of said called 1073.77 acre
  tract, and being the northwest corner of said Billy Jack Sharp
  Grantor Trust tract;
         THENCE South 87°07'47" East, along the common line of said
  Palms Survey, and the said Antonio Survey, and the common line of
  said Billy Jack Sharp Grantor Trust tract, and said called 300 acre
  tract, and passing the southeast corner of said called 300 acre
  tract, same being the southeast corner of said Antonio Survey, same
  being the southwest corner of said Palms Survey, and being the
  southwest corner of a called 108.84 acre tract of land conveyed to
  Lucian Touchtone, by deed recorded in Volume 1219, Page 360, of the
  Deed Records of Grayson County, Texas, and continuing a total
  distance of 2698.53 feet to a 1/2 inch iron rod found for corner,
  said point being the northeast corner of said Nelson Survey, and an
  ell corner of a called 197.3 acre tract of land conveyed to S.A.
  Schott by deed recorded in Volume 359, Page 369, of the Deed Records
  of Grayson County, Texas;
         THENCE South 02°52'48" West, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and said called 197.3 acre
  tract, a distance of 3325.00 feet to a 1/2 inch iron rod set for
  corner, said point being the southwest corner of said called 197.3
  acre tract;
         THENCE South 87°56'40" East, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and said called 197.3 acre
  tract, a distance of 2577.31 feet to a 1/2 inch iron rod set for
  corner, said point being the southeast corner of said called 197.3
  acre tract;
         THENCE North 02°54'54" East, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and said called 197.3 acre
  tract, a distance of 3318.06 feet to a 1/2 inch iron rod set for
  corner, said point being the northwest corner of said called 197.3
  acre tract, same being the southeast corner of a called 245.67 acre
  tract of land conveyed to Gordon W. Goodier, et ux, by deed recorded
  in Volume 1179, Page 63, of the Deed Records of Grayson County,
  Texas;
         THENCE North 03°09'39" East, along the common line of said
  Billy Jack Sharp Grantor Trust tract, and said called 245.67 acre
  tract, a distance of 4542.15 feet to a 1/2 inch iron rod found for
  corner, said point being the northwest corner of said Billy Jack
  Sharp Grantor Trust tract, same being the northeast corner of said
  called 245.67 acre tract, and being in the south right-of-way line
  of F.M. Highway 902;
         THENCE South 86°51'00" East, along the north line of said
  Billy Jack Sharp Grantor Trust tract, with the south right-of-way
  line of F.M. Highway 902, a distance of 1119.25 feet to a railroad
  spike found for corner, said point being in the centerline
  intersection more or less of the south right-of-way line of F.M.
  Highway 902, and McDonald Road, and being in the east line of said
  Palms Survey;
         THENCE South 02°47'31" West, with the east line of said Palms
  Survey, and the east line of said Billy Jack Sharp Grantor Trust
  tract, and along the centerline of McDonald Road more or less, a
  distance of 12,018.20 feet to the POINT OF BEGINNING and containing
  44,527,033 square feet or 1,022.20 acres of computed land.
         SECTION 1.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 1.04.  This article takes effect September 1, 2007.
  ARTICLE 2.  KIMBERLIN RANCH MUNICIPAL
  UTILITY DISTRICT NO. 1 OF GRAYSON COUNTY
         SECTION 2.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8264 to read as follows:
  CHAPTER 8264. KIMBERLIN RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF
  GRAYSON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8264.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Kimberlin Ranch Municipal
  Utility District No. 1 of Grayson County.
         Sec. 8264.002.  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.
         Sec. 8264.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8264.023 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.
         Sec. 8264.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 2.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 2.02
  of the article 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.
  [Sections 8264.005-8264.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8264.021.  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
  8264.023; or
               (2)  the date this chapter expires under Section
  8264.003.
         Sec. 8264.022.  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.
         Sec. 8264.023.  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 2.02 of the article creating this
  chapter.
         Sec. 8264.024.  INITIAL ELECTED DIRECTORS; TERMS.  The
  directors elected under Section 8264.023 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.
         Sec. 8264.025.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8264.026-8264.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8264.051.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
  [Sections 8264.052-8264.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8264.101.  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. 8264.102.  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.
         Sec. 8264.103.  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, subdivision requirements, and regulations of each
  municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located.
         Sec. 8264.104.  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.
         Sec. 8264.105.  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 2.02 of the
  article creating this chapter; or
               (2)  outside the corporate limits of the city of
  Gunter.
         Sec. 8264.106.  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.
  [Sections 8264.107-8264.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8264.151.  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 8264.201.
  [Sections 8264.152-8264.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 8264.201.  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
  8264.101 or 8264.103.
         (b)  The district may not issue bonds or other obligations to
  finance projects authorized by Section 8264.103 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 8264.103 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 2.02.  The Kimberlin Ranch Municipal Utility
  District No. 1 of Grayson County includes all the territory
  contained in the following area:
  BEING situated in the County of Grayson, State of Texas, being parts
  of the JOHN NELSON SURVEY, ABSTRACT NO. 902, the JOHN W. BERGIN
  SURVEY, ABSTRACT NO. 75, and the ANTONIO HERNANDEZ SURVEY, ABSTRACT
  NO. 489, also being the 1073.77 acre tract of land conveyed to
  Davidson Land and Cattle Company, L.P. by deed recorded in Volume
  2235, Page 597, Real Property Records, GRAYSON County, Texas and
  being described by metes and bounds as follows:
  BEGINNING at a 2 inch steel rod set at the Southeast corner of the
  758.750 acre tract of land conveyed to Larry Lehman, et ux, by deed
  of record in Volume 2555, Page 624-655, of said Real Property
  Records, the Southwest corner of said 1073.77 acre tract of land,
  said rod also being in the North line of the 208.67 acre tract of
  land conveyed to James and Juanell Bridges Family Living Trust by
  deed of record in Volume 2506, Page 146, of said Real Property
  Records;
  THENCE North 00 degrees 00 minutes 00 seconds West with the West
  line of said 1073.77 acre tract and the center of a public road a
  distance of 4674.02 feet to a 2 inch steel rod set at the Southwest
  corner of a 177.93 acre tract of land conveyed to Louis M. Rexrode,
  et ux, by deed of record in Volume 2205, Page 639, of said Real
  Property Records, also being the Southeast corner of the 133.05
  acre tract of land conveyed to Henry S. Jackson, et ux, by deed of
  record in Volume 2059, Page 273, of said Real Property Records;
  THENCE North 89 degrees 22 minutes 34 seconds East with the South
  line of said 177.93 acre tract a distance of 2805.74 feet to a 2 inch
  steel rod set at a found wooden stake at the Southeast corner of
  said 177.93 acre tract;
  THENCE North 00 degrees 32 minutes 19 seconds West with a fence and
  the East line of said 177.93 acre tract of land a distance of
  2774.19 feet to a 2 inch steel rod set at a found wooden stake at the
  Northeast corner of said 177.93 acre tract;
  THENCE South 89 degrees 47 minutes 48 seconds West with the North
  line of said 177.93 acre tract of land a distance of 2765.01 feet to
  a 2 inch steel rod set at the Northwest corner of said 177.93 acre
  tract, being in the East line of said 133.05 acre tract;
  THENCE North 00 degrees 00 minutes 00 seconds West with the center
  of a public road and said East line a distance of 1296.86 feet to a 2
  inch steel rod set at the Northwest corner of said 1073.77 acre
  tract, the Southeast corner of the 362.631 acre tract of land
  conveyed to Taylor Strawn and Ernest B. Strawn, Jr., by deed of
  record in Volume 2209, Page 772, of said Real Property Records, also
  being the Southwest corner of the 121.14 acre tract of land
  described as Part Two and conveyed to Jeribeth Sharp by deed of
  record in Volume 2668, Page 009, of said Real Property Records;
  THENCE North 89 degrees 37 minutes 51 seconds East with the South
  line of said 121.14 acre tract, a distance of 4016.31 feet to a 2
  inch steel rod set at a fence corner, being the Southeast corner of
  said 121.14 acre tract;
  THENCE South 00 degrees 10 minutes 16 seconds East with a fence a
  distance of 1298.84 feet to a 2 inch steel rod set at a fence post;
  THENCE North 89 degrees 30 minutes 06 seconds East with a fence a
  distance of 2512.99 feet to a 2 inch steel rod set at the most
  Easterly Northeast corner of said 1073.77 acre tract, the Northwest
  corner of the 1022.21 acre tract of land described as Part One as
  conveyed to Jeribeth Sharp by deed of record in Volume 2668, Page
  009, of said Real Property Records;
  THENCE with the West line of said 1022.21 acre tract of land and an
  existing fence line, the following calls and distances:
  South 00 degrees 40 minutes 13 seconds East, a distance of 2497.50
  feet to a 2 inch steel rod set at a fence corner;
  South 89 degrees 32 minutes 01 seconds West a distance of 150.18
  feet to a 2 inch steel rod set a fence corner;
  South 00 degrees 44 minutes 41 seconds East_ a distance of 1112.81
  feet to a 2 inch steel rod set a fence corner;
  South 89 degrees 13 minutes 04 seconds East a distance of 150.56
  feet to a 2 inch steel rod set a fence corner;
  South 00 degrees 45 minutes 51 seconds East a distance of 3832.16
  feet to a 2 inch steel rod set in a public road, being the Southeast
  corner of said 1073.77 acre tract, also being in the North line of
  the 67 acre tract of land conveyed to James S. Rodgers, et ux, by
  deed of record in Volume 1045, Page 759, of the Deed Records,
  Grayson County, Texas;
  THENCE South 89 degrees 24 minutes 04 seconds West with the South
  line of said 1073.77 acre tract a distance of 6642.95 feet to the
  POINT OF BEGINNING and CONTAINING 1065.860 acres of land, more or
  less.
         SECTION 2.03.  (a) The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 2.04.  This article takes effect September 1, 2007.
  ARTICLE 3.  KIMBERLIN RANCH MUNICIPAL
  UTILITY DISTRICT NO. 2 OF GRAYSON COUNTY
         SECTION 3.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8265 to read as follows:
  CHAPTER 8265. KIMBERLIN RANCH MUNICIPAL UTILITY DISTRICT NO. 2 OF
  GRAYSON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8265.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Kimberlin Ranch Municipal
  Utility District No. 2 of Grayson County.
         Sec. 8265.002.  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.
         Sec. 8265.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8265.023 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.
         Sec. 8265.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 3.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 3.02
  of the article 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.
  [Sections 8265.005-8265.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8265.021.  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
  8265.023; or
               (2)  the date this chapter expires under Section
  8265.003.
         Sec. 8265.022.  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.
         Sec. 8265.023.  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 3.02 of the article creating this
  chapter.
         Sec. 8265.024.  INITIAL ELECTED DIRECTORS; TERMS.  The
  directors elected under Section 8265.023 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.
         Sec. 8265.025.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8265.026-8265.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8265.051.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
  [Sections 8265.052-8265.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8265.101.  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. 8265.102.  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.
         Sec. 8265.103.  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, subdivision requirements, and regulations of each
  municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located.
         Sec. 8265.104.  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.
         Sec. 8265.105.  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 3.02 of the
  article creating this chapter; or
               (2)  outside the corporate limits of the city of
  Gunter.
         Sec. 8265.106.  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.
  [Sections 8265.107-8265.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8265.151.  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 8264.201.
  [Sections 8265.152-8265.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 8265.201.  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
  8265.101 or 8265.103.
         (b)  The district may not issue bonds or other obligations to
  finance projects authorized by Section 8265.103 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 8265.103 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 3.02.  The Kimberlin Ranch Municipal Utility
  District No. 2 of Grayson County includes all the territory
  contained in the following area:
  SITUATED in the County of GRAYSON, State of Texas, being a part of
  the ROBERT MASON SURVEY, ABSTRACT NO. 784 and the SAMUEL Q. PETTUS
  SURVEY, ABSTRACT NO. 939, being a part of a 297.715 acre tract of
  land (described as 300.715 acres less 3.00 acres) conveyed by Regis
  J. Sutton to Jean Anna Sutton in Agreement of Regis J. Sutton and
  Jean Anna Sutton Partitioning Community Property dated June 3,
  1983, recorded in Volume 1650, Page 260, Deed Records, GRAYSON
  County, Texas, and being more particularly described by metes and
  bounds as follows to-wit:
  BEGINNING at a found 1/2 inch rebar on the most Southerly South line
  of said 297.715 acre tract, the North line of a 201.711 acre tract
  of land conveyed by Charles C. Graham, et ux to Mario Feliciano,
  Trustee by Deed dated July 9, 1980, recorded in Volume 1523, Page
  109, Deed Records, GRAYSON County, Texas, said rebar being North 87
  degrees 08 minutes 06 seconds West, a distance of 626.13 feet from a
  found spike nail maintaining the most Southerly Southeast corner of
  said 297.715 acre tract, the most Northerly Northeast corner of
  said 201.711 acre tract, in a public road known as Wall Street Road
  and on an East line of said Mason Survey, the West line of the
  William Kinnamon Survey, Abstract No. 676;
  THENCE North 87 degrees 08 minutes 06 seconds West, with the general
  line of a fence, the most Southerly South line of said 297.715 acre
  tract, the North line of said 201.711 acre tract, a distance of
  1141.44 feet to a fence post;
  THENCE North 87 degrees 24 minutes 28 seconds West, continuing with
  the general line of said fence, the Southerly South line of said
  297.715 acre tract, the North line of said 201.77 acre tract, a
  distance of 2156.98 feet to a set spike nail at the base of a fence
  corner post for the Northwest corner of said 201.711 acre tract, the
  most Southerly Southwest corner of said 297.715 acre tract, on the
  East line of a 223.5639 acre tract of land conveyed by Kent Berlin
  to The Berlin Family Limited Partnership by Deed dated January 10,
  2000, recorded in Volume 2881, Page 924, Official Public Records,
  GRAYSON County, Texas;
  THENCE North 03 degrees 33 minutes 37 seconds East, with the general
  line of a fence, the East line of said 223.5639 acre tract, a
  distance of 1112.63 feet to a fence corner post maintaining the
  Northeast corner of said 223.5639 acre tract, an ell corner of said
  297.715 acre tract on a North line of said Mason Survey, the South
  line of said Pettus Survey;
  THENCE North 87 degrees 19 minutes 23 seconds West, with the general
  line of a fence, the North line of said 223.5639 acre tract, a North
  line of said Mason Survey, the South line of said Pettus Survey,
  passing the Northwest corner of said 223.5639 acre tract, the
  Northeast corner of a 20 foot wide strip of land described in Second
  Tract in Deed from George M. Carter, et ux to Joe D. Johnson by Deed
  dated March 29, 1961, recorded in Volume 930, Page 211, Deed
  Records, GRAYSON County, Texas and continuing for a total distance
  of 2911.41 feet to a set spike nail at the base of a fence corner
  post for the Northwest corner of said Mason Survey, the most
  Westerly Southwest corner of said 297.715 acre tract, the Southwest
  corner of said Pettus Survey, on the East line of the Sarah Shoto
  Survey, Abstract No. 1079, the East line of a 100 acre tract of land
  described in First Tract in said Volume 930, Page 211;
  THENCE North 03 degrees 27 minutes 34 seconds East, with the West
  line of said Pettus Survey, the East line of both said Shoto Survey
  and 100 acre tract, passing the Northeast corner of said 100 acre
  tract, the Southeast corner of a 499.67 acre tract of land conveyed
  by Mary H. Martinek to Mary H. Martinek, Trustee of the Mary H.
  Martinek Revocable Living Trust by Deed dated April 11, 1997,
  recorded in Volume 2562, Page 196, Official Public Records, GRAYSON
  County, Texas and continuing with an East line of said 499.67 acre
  tract for a total distance of 1263.89 feet to a found 1/2 inch rebar
  at the base of a fence corner post, said rebar maintaining the
  Northwest corner of said 297.715 acre tract, the Southwest corner
  of a 223 acre tract of land now or formerly owned by Thelma Hunter
  (no Deed reference available);
  THENCE South 87 degrees 25 minutes 47 seconds East, with the general
  line of a fence, the South line of said 223 acre tract, at a distance
  of 6798.67 feet to a found 3/8 inch rebar maintaining the Southeast
  corner of said 223 acre tract, the most Northerly Northeast corner
  of said 297.715 acre tract, in said Wall Street Road and on the East
  line of said Pettus Survey, the West line of said William Kinnamon
  Survey, the West line of a tract of land described in North Tract in
  Quitclaim Deed dated September 30, 1997 from Susan C. deCordova to
  Susan C. deCordova, Trustee of the deCordova Trust recorded in
  Volume 2577, Page 155, Official Public Records, GRAYSON County,
  Texas;
  THENCE South 03 degrees 15 minutes 00 seconds West, with an East
  line of both said 297.715 acre tract and Mason Survey, the West line
  of both said Kinnamon Survey and North Tract, passing the Southeast
  corner of said Pettus Survey, the most Northerly Northeast corner
  of said Mason Survey and continuing for a total distance of 1680.66
  feet to a found spike nail maintaining a Southeast corner of said
  297.715 acre tract, the Northeast corner of a 3.00 acre tract of
  land conveyed by Anna Houck Trust to AHG Trust by Deed dated January
  30, 2002, recorded in Volume 3194, Page 458, Official Public
  Records, GRAYSON County, Texas;
  THENCE North 87 degrees 04 minutes 00 seconds West with the North
  line of said 3.00 acre tract, a distance of 626.13 feet to a found
  1/2 inch rebar maintaining its Northwest corner;
  THENCE South 03 degrees 15 minutes 00 seconds West, with the West
  line of said 3.00 acre tract, at a distance of 208.71 feet passing a
  found 1/2 inch rebar maintaining its Southwest corner and
  continuing for a total distance of 711.76 feet to the PLACE OF
  BEGINNING and CONTAINING 288.92 acres of land, more or less.
  TRACT 2
  All that certain tract or parcel of land situated in the Robert
  Mason Survey, Abstract Number 784 County of Grayson, State of
  Texas, said tract being part of a called 69 1\2 acres tract as
  described in Deed to Marshall E. Anderson et ux, Marquerite
  Anderson, filed 11 January 1962, and Recorded in Volume 947 Page 387
  of the Deed Records of the County of Grayson, State of Texas, and
  being more fully described as follows:
  Beginning for the northeast corner of the tract being described
  herein at a set 1\2 inch Steel Square Tubing, said tubing being the
  northeast corner of said Anderson tract, and the southeast corner
  of a called 100 acres tract as described in the First Tract, and on
  the west line of a called 1.56 acre tract as described in the Second
  tract in Deed to Joe D. Johnson, filed 30 March 1961, and Recorded
  in Volume 930 Page 211 of said Deed Records;
  Thence: South 03 degrees 29 minutes 22 seconds West, with the east
  line of said Anderson tract, and with the west line of said Johnson
  Second Tract, a distance of 609.07 feet to a found 1\2 inch Steel
  Square Tubing for the northeast corner of a 1.25 acre tract as
  surveyed out for Dennis Keating dated 27 December 1999;
  Thence: North 86 degrees 56 minutes 26 seconds West, with the north
  line of said Keating tract, a distance of 124.72 feet to a found 1\2
  inch Steel Square Tubing for the northwest corner of said Keating
  tract;
  Thence: South 03 degrees 32 minutes 41 seconds West, with the west
  line of said Keating tract, a distance of 435.58 feet to a found 1\2
  inch Steel Square Tubing for the southwest corner of said Heating
  tract, and on the north Right-of-Way line of Farm-to-Market Road
  Number 121 as described in Deed to The State of Texas, filed 11
  November 1953 and Recorded in Volume 744 Page 72 of said Deed
  Records
  Thence: North 87 degrees 07 minutes 47 seconds West, with the south
  line of said Anderson tract, and the north ROW line of said FM 121,
  a distance of 1856.89 feet to a found State of Texas Concrete
  Right-of-Way Monument for a corner;
  Thence: North 73 degrees 24 minutes 31 seconds West, with the south
  line of said Anderson tract, and the north ROW line of FM 121, a
  distance of 332.15 feet to a found 1\2 inch Steel Square Tubing for
  the southeast corner of a 5 acre tract as described in Deed to
  Ronald R. Baker et ux, Joanie C. Baker, filed 06 November 1995, and
  Recorded in Volume 2428 Page 31 of said Deed Records;
  Thence: North 29 degrees 08 minutes 03 seconds West, with the east
  line of said Baker tract, a distance of 1078.23 feet to a found 1\2
  inch Steel Square Tubing for the northeast corner of said Baker
  tract, and on the south line of a tract as described in Deed to Steve
  Bryant et ux, Judy Bryant, filed 02 January 2003, and Recorded in
  Volume 3393 Page 846 of said Deed Records;
  Thence: South 88 degrees 17 minutes 06 seconds East, with the north
  line of said Anderson tract, and with the south line of said Bryant
  tract, a distance of 1574.07 feet to a found 1\2 inch Steel Rebar at
  the base of a wood fence corner post for the southeast corner of
  said Bryant tract, and the southwest corner of said Johnson First
  tract;
  Thence: South 87 degrees 58 minutes 16 seconds East, with the north
  line of said Anderson tract, and the south line of said Johnson
  First Tract, a distance of 1313.83 feet to the POINT OF BEGINNING
  and containing 58.946 acres of land.
  TRACT 3
  All that certain tract or parcel of land situated in the Robert
  Mason Survey, Abstract Number 784 and the Sarah Shoto Survey,
  Abstract Number 1079, County of Grayson, State of Texas, said tract
  being all of a called 100 acres tract as described in the First
  Tract, and all of a called 1.56 acre tract as described in the
  Second tract in Deed to Joe D. Johnson, filed 30 March 1961, and
  Recorded in Volume 930 Page 211 of the Deed Records of the County of
  Grayson, State of Texas, and being more fully described as follows:
  Beginning for the southeast corner of the tract being described
  herein at a found 1\2 inch Steel Square Tubing, said tubing being
  the southeast corner of said Johnson tract, and the southwest
  corner of a called 223.457 acre tract as described in Deed to Gunter
  223, LTD, filed 06 June 2005, and Recorded in Volume 3870 Page 800
  of said Deed Records, said tubing also being on the north
  Right-of-Way line of Farm-to-Market Road Number 121 as described in
  Deed to The State of Texas, filed 11 November 1953 and Recorded in
  Volume 744 Page 72 of said Deed Records;
  Thence: North 86 degrees 52 minutes 52 seconds West, with the south
  line of said Johnson Seconds Tract, and with the north ROW line of
  said FM 121, a distance of 20.00 feet to a found 1\2 inch Steel
  Square Tubing for the southwest corner of said Johnson Seconds
  Tract, and the southeast corner of a 1.25 acre tract as surveyed out
  for Dennis Keating dated 27 December 1999;
  Thence: North 03 degrees 29 minutes 02 seconds East, with the west
  line of said Johnson Second tract, a distance of 1044.78 feet to a
  set 1\2 inch Steel Square Tubing with a plastic cap marked COX 4577
  for the southeast corner of said Johnson First tract and the
  northeast corner of a tract as described in Deed to Marshall E.
  Anderson et ux, Marquerite Anderson, filed 11 January 1962, and
  Recorded in Volume 947 Page 387 of said Deed Records;
  Thence: North 87 degrees 58 minutes 16 seconds West, with the south
  line of said Johnson First Tract, and with the north line of said
  Anderson tract, a distance of 1313.82 feet to a found 1\2 inch Steel
  Rebar for the southwest corner of said Johnson First Tract, and the
  southeast corner of a tract as described in Deed to Steve Bryant et
  ux, Judy Bryant, filed 02 January 2003, and Recorded in Volume 3393
  Page 846 of said Deed Records;
  Thence: North 03 degrees 21 minutes 26 seconds East, with the west
  line of said Johnson First Tract, a distance of 3311.44 feet to a
  Wood Fence corner Post for the northwest corner of said Johnson
  First Tract;
  Thence: South 86 degrees 54 minutes 56 seconds East, with the north
  line of said Johnson First Tract, a distance of 1313.67 feet to a
  set 1\2 inch Steel Square Tubing for the northeast corner of said
  Johnson First Tract, and on the west line of a called 288.92 acre
  tract as described in Deed to Inwood Plaza Joint Venture, filed 07
  January 2004, and Recorded in Volume 3594 Page 147 of said Deed
  Records;
  Thence: South 03 degrees 27 minutes 34 seconds West, with the east
  line of said Johnson First Tract, a distance of 960.75 feet to a
  found 1\2 inch Steel Rebar at the base of a Wood Fence corner Post
  for the northwest corner of said Johnson Second Tract, and the
  southwest corner of said Inwood Plaza Joint Venture tract;
  Thence: South 87 degrees 14 minutes 29 seconds East, with the north
  line of said Johnson Second Tract, and with the south line of said
  Inwood Plaza tract, a distance of 20.98 feet to a found 1\2 inch
  Steel Rebar at the base of a wood fence corner post for the
  northeast corner of said Johnson Second Tract, and the northwest
  corner of said Gunter 223 tract;
  Thence: South 03 degrees 20 minutes 36 seconds West, with the east
  line of said Johnson Second Tract, and the west line of said Gunter
  223 tract, a distance of 2326.24 feet to a Wood Fence corner Post
  for an angle point;
  Thence: South 03 degrees 29 minutes 00 seconds West, with the east
  line of said Johnson Second Tract, and the west line of said Gunter
  223 tract, a distance of 1045.16 feet to the POINT OF BEGINNING and
  containing 101.005 acre of land.
         SECTION 3.03.  (a) The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 3.04.  This article takes effect September 1, 2007.
  ARTICLE 4.  KIMBERLIN RANCH MUNICIPAL
  UTILITY DISTRICT NO. 3 OF GRAYSON COUNTY
         SECTION 4.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8266 to read as follows:
  CHAPTER 8266. KIMBERLIN RANCH MUNICIPAL UTILITY DISTRICT NO. 3 OF
  GRAYSON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8266.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Kimberlin Ranch Municipal
  Utility District No. 3 of Grayson County.
         Sec. 8266.002.  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.
         Sec. 8266.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8266.023 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.
         Sec. 8266.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 4.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 4.02
  of the article 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.
  [Sections 8266.005-8266.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8266.021.  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
  8266.023; or
               (2)  the date this chapter expires under Section
  8266.003.
         Sec. 8266.022.  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.
         Sec. 8266.023.  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 4.02 of the article creating this
  chapter.
         Sec. 8266.024.  INITIAL ELECTED DIRECTORS; TERMS.  The
  directors elected under Section 8266.023 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.
         Sec. 8266.025.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8266.026-8266.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8266.051.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
  [Sections 8266.052-8266.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8266.101.  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. 8266.102.  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.
         Sec. 8266.103.  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, subdivision requirements, and regulations of each
  municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located.
         Sec. 8266.104.  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.
         Sec. 8266.105.  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 4.02 of the
  article creating this chapter; or
               (2)  outside the corporate limits of the city of
  Gunter.
         Sec. 8266.106.  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.
  [Sections 8266.107-8266.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8266.151.  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 8266.201.
  [Sections 8266.152-8266.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 8266.201.  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
  8266.101 or 8266.103.
         (b)  The district may not issue bonds or other obligations to
  finance projects authorized by Section 8266.103 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 8266.103 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 4.02.  The Kimberlin Ranch Municipal Utility
  District No. 3 of Grayson County includes all the territory
  contained in the following area:
  All that certain tract or parcel of land situated in the Ricardo
  Garcia Survey, Abstract Number 446 and the M.S. Herrera Survey,
  Abstract Number 545, County of Grayson, State of Texas, said tract
  being all of a 303.943 acre tract as described in Deed to Morris
  Morgan Jr., et ux, Bonita Morgan, filed 26 October 1996, and
  Recorded in Volume 2364 Page 637, and all of a 20.333 acre tract as
  described in Deed to Morris Morgan Jr., et ux, Bonita Morgan, filed
  02 May 2003, and Recorded in Volume 3446 Page 71, and all of a
  22.469 acre tract as described in Deed to Morris Morgan Jr., et ux,
  Bonita Morgan, filed 20 February 2004, and Recorded in Volume 3616
  Page 79 of the Deed Records of the County of Grayson, State of
  Texas, and being more fully described as follows:
  Beginning for the southeast corner of the tract being described
  herein at a found 3\4 inch Steel Rod, said rod being the southeast
  corner of said Morgan 303.943 acre tract, and the northeast corner
  of a tract as described in Deed to Martinek Grain & Bin Inc,, filed
  03 August 1994, and Recorded in Volume 2352 Page 18 of said Deed
  Records, said rod also being in Scharff Road (gravel surfaced);
  Thence: South 88 degrees 48 minutes 47 seconds West, with the south
  line of said Morgan 303.943acre tract, and passing at 22.90 feet a
  wood fence corner post on the west side of said road, and continuing
  on said course for a total distance of 3725.83 feet to a found 1\2
  inch Steel Square Tubing with a plastic cap marked Cox 4577 for the
  southwest corner of said Morgan 303.943 acre tract, and the
  southeast corner of said Morgan 20.333 acre tract;
  Thence: South 89 degrees 50 minutes 58 seconds West, with the south
  line of said Morgan 20.333 acre tract, a distance of 624.98 feet to
  a found 1\2 inch Steel Square Tubing with a plastic cap marked COX
  4577 for the southwest corner of said Morgan 20.333 acre tract, and
  the southeast corner of said Morgan 22.469 acre tract;
  Thence: South 89 degrees 52 minutes 55 seconds West, with the south
  line of said Morgan 22.469 acre tract, a distance of 719.91 feet to
  a found 1\2 inch Steel Square Tubing with a plastic cap marked COX
  4577 for the southwest corner of said Morgan 22/469 acre tract;
  Thence: North 01 degrees 01 minutes 06 seconds West, with the west
  line of said Morgan 22.469 acre tract, a distance of 1400.92 feet to
  a found 1\2 inch Steel Rebar by a wood Fence corner Post for the
  northwest corner of said Morgan 22.469 acre tract, and an ell corner
  of said Morgan 303.943 acre tract;
  Thence: North 01 degrees 01 minutes 06 seconds West, with the west
  line of said Morgan 303.943 acre tract, a distance of 1583.19 feet
  to a found 1\2 inch Steel Rebar by a wood Fence corner Post for the
  northwest corner of said Morgan 303.943 acre tract;
  Thence: North 89 degrees 11 minutes 45 seconds East, with the north
  line of said Morgan 303.943acre tract, a distance of 1378.61 feet to
  a found 1\2 inch Steel Rebar by a wood fence corner post for a
  corner;
  Thence: North 89 degrees 04 minutes 46 seconds East, with the north
  line of said Morgan 303.943 tract, a distance of 3678.41 feet to a
  found 3\4 inch Steel Rod for th3e northeast corner of said Morgan
  303.943 acre tract, and in Scharff Road.
  Thence: South 01 degrees 16 minutes 42 seconds East, with the east
  line of said Morgan 303.943 tract, and in said road, a distance of
  2982.52 feet to the POINT OF BEGINNING and containing 347.744 acres
  of land.
         SECTION 4.03.  (a) The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 4.04.  This article takes effect September 1, 2007.
  ARTICLE 5.  KING'S CROSSING MUNICIPAL
  UTILITY DISTRICT OF GRAYSON COUNTY
         SECTION 5.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8251 to read as follows:
  CHAPTER 8251. KING'S CROSSING MUNICIPAL UTILITY DISTRICT OF
  GRAYSON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8251.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the King's Crossing Municipal
  Utility District of Grayson County.
         Sec. 8251.002.  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.
         Sec. 8251.003.  FINDING OF PUBLIC USE AND BENEFIT.  The
  district is created to serve a public use and benefit.
         Sec. 8251.004.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8251.024 before September 1, 2009:
               (1)  the district shall, as soon as it reasonably knows
  the district will not be confirmed and before September 1, 2009:
                     (A)  pay any debts incurred; and
                     (B)  transfer to Grayson County any assets that
  remain after the payment of debts;
               (2)  the district is dissolved September 1, 2009; and
               (3)  this chapter expires September 1, 2009.
         Sec. 8251.005.  INITIAL DISTRICT TERRITORY. (a)  The
  district is initially composed of the territory described by
  Section 5.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 5.02
  of the article 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; or
               (3)  the legality or operation of the board.
  [Sections 8251.006-8251.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8251.021.  TEMPORARY DIRECTORS. (a)  The temporary
  board consists of:
               (1)  Hill Johnson;
               (2)  Joe Henneburger;
               (3)  Bill Casanova;
               (4)  Adrian Butler; and
               (5)  Kevin Eddy.
         (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
  8251.024; or
               (2)  the date this chapter expires under Section
  8251.004.
         Sec. 8251.022.  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 Grayson County Courthouse.
         Sec. 8251.023.  DEVELOPMENT AGREEMENT REQUIRED. The
  temporary directors may not hold an election under Section 8251.024
  or approve the issuance of bonds until a district landowner enters
  into a development agreement regarding district land with the City
  of Howe.
         Sec. 8251.024.  CONFIRMATION AND INITIAL DIRECTORS'
  ELECTION. 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. 8251.025.  INITIAL ELECTED DIRECTORS; TERMS. The
  directors elected under Section 8251.024 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.
         Sec. 8251.026.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2009.
  [Sections 8251.027-8251.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8251.051.  DIRECTORS; TERMS. (a)  The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
  [Sections 8251.052-8251.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8251.101.  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. 8251.102.  ROAD PROJECTS. (a)  The district may
  construct, acquire, improve, maintain, or operate macadamized,
  graveled, or paved roads or improvements in aid of those roads,
  inside or outside 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.  If the district is not
  located in the corporate limits or extraterritorial jurisdiction of
  a municipality, a road project must meet all applicable
  construction standards, zoning and subdivision requirements, and
  regulations 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 resolution.  If
  the district is not located in the corporate limits or
  extraterritorial jurisdiction of a municipality, the district may
  not undertake a road project unless each county in which the
  district is located consents by resolution.
         Sec. 8251.103.  ROAD CONTRACTS. The district may contract
  for a road project in the manner provided by Subchapter I, Chapter
  49, Water Code.
         Sec. 8251.104.  MAINTENANCE AND REPAIR OF ROADS IN TERRITORY
  OUTSIDE CORPORATE LIMITS OF MUNICIPALITY. If district territory,
  or a portion of district territory, is located outside the
  corporate limits of a municipality, the district shall:
               (1)  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; and
               (2)  pay for the cost of performing the district's
  duties under Subdivision (1).
  [Sections 8251.105-8251.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8251.151.  OPERATION AND MAINTENANCE TAX. The district
  may impose a tax for any district operation and maintenance purpose
  in the manner provided by Section 49.107, Water Code.
         Sec. 8251.152.  TAX TO REPAY BONDS.  The district may impose
  a tax to pay the principal of and interest on bonds issued under
  Section 8251.201.
         Sec. 8251.153.  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
  522; or
               (5)  a person who provides to the public advanced
  telecommunications services.
  [Sections 8251.154-8251.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 8251.201.  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, and to finance the
  construction, maintenance, or operation of projects under Section
  8251.102.
         (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.
         (c)  The district may not issue bonds or other obligations
  secured wholly or partly by ad valorem taxation to finance projects
  authorized by Section 8251.102 unless the issuance is approved by a
  vote of a two-thirds majority of district voters voting at an
  election called for that purpose.
         (d)  Bonds or other obligations issued or incurred to finance
  projects authorized by Section 8251.102 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 5.02.  The King's Crossing Municipal Utility
  District of Grayson County initially includes all the territory
  contained in the following described area:
  TRACT 1
  BEING a tract of land situated in the J. ARMENDARIS SURVEY, ABSTRACT
  NO. 39, the J. MARSHALL SURVEY, ABSTRACT NO. 868, the C. MASON
  SURVEY, ABSTRACT NO. 859 and the E. REYNOLDS SURVEY, ABSTRACT NO.
  1008, in Grayson County, Texas, and being all of a called 146 acre
  tract of land described in a deed to W. C. King recorded in Volume
  464, Page 531 of the Deed Records of Grayson County, Texas, part of
  a called 273.2255 acre tract described in a deed to W. C. King
  recorded in Volume 418, Page 320 of said Deed Records, (both of said
  King tracts being subsequently conveyed in part to Joe C. King,
  Nancy Jane Yarborough and the Mary Ann Arterbury Revocable Trust by
  deeds recorded in Volume 2182, Page 950, Volume 2192, Page 234,
  Volume 2249, Page 895, and Volume 3259, Page 266, all of said Deed
  Records), all of a called 60.2 acre tract of land described as Tract
  One in a deed to Nancy McElreath King recorded in Volume 953, Page
  307 of said Deed Records, all of a called 12.5 acre tract of land
  described as Tract Two in said deed, and all of a called 40 acre
  tract of land described as Tract Three in said deed, and being more
  particularly described as follows:
  BEGINNING at a railroad spike found at the intersection of the
  center of Farmington Road (undedicated public road) with the center
  of Hall Cemetery Road (undedicated public road), said point being
  the southwest corner of said 60.2 acre tract;
  THENCE North 00 degrees 57 minutes 32 seconds West, along the
  approximate center of Farmington Road, and along the west lines of
  said 60.2 acre tract and said 146 acre tract, a distance of 2577.20
  feet to a 1-inch iron pipe found for the most westerly northwest
  corner of said 146 acre tract and the south corner of a called 34
  acre tract of land described in a deed to the Burks Family Trusts
  recorded in Volume 3128, Page 820 of said Deed Records;
  THENCE North 34 degrees 38 minutes 57 seconds East, along the common
  line between said 34 acre tract and said 146 acre tract, a distance
  of 2574.44 feet to a 1-inch iron pipe found at an angle point in the
  approximate center of Davis Road (undedicated public road) for the
  east corner of said 34 acre tract and the most southerly southeast
  corner of a called 123.8843 acre tract of land described in a deed
  to C. J. Matthews and wife Dorothy Matthews recorded in Volume 1180,
  Page 590 of said Deed Records;
  THENCE North 33 degrees 34 minutes 50 seconds East, along the common
  line between said 146 acre tract and said 123.8843 acre tract, and
  along the approximate center of Davis Road, a distance of 989.01
  feet to a 1-inch iron pipe found at an angle point in said road for
  most northerly northwest corner of said 146 acre tract;
  THENCE South 89 degrees 56 minutes 45 seconds East, along the
  approximate center of Davis Road and the north lines of said 146
  acre tract and said 273.2255 acre tract, a distance of 3122.85 feet
  to a 5/8-inch iron rod with cap marked "PETITT RPLS 4087" set for
  corner;
  THENCE South 00 degrees 55 minutes 04 seconds East, along the
  prolongation of and the west lines of a called 0.923 acre tract
  described in a deed to Joe C. King and wife Katie Mae King recorded
  in Volume 1518, Page 747 of said Deed Records, a called 3.086 acre
  tract of land described in a deed to Joe C. King and wife Katie Mae
  King recorded in Volume 1331, Page 150, a tract of land described in
  a deed to Joe C. King recorded in Volume 1293, Page 77 of said Deed
  Records, a distance of 3195.54 feet to a 5/8-inch iron rod with cap
  marked "PETITT RPLS 4087" set for a point of the north line of
  Western Hills, an addition to the City of Howe according to the plat
  thereof recorded in Volume 3, Page 76 of the Map Records of Grayson
  County, Texas.
  THENCE South 89 degrees 24 minutes 28 seconds West, along the north
  line of Western Hills, and addition to the City of Howe, a distance
  of 1.52 feet to the northwest corner of said Western Hills to a
  5/8-inch iron rod with cap marked "PETITT RPLS 4087" set for corner;
  THENCE South 00 degrees 48 minutes 45 seconds East, departing the
  northwest corner of said Western Hills, and along the most
  southerly east line of said 273.2255 acre tract, a distance of
  410.53 feet to a 5/8-inch iron rod with cap marked "PETITT - RPLS
  4087" set for the most southerly southeast corner of said 273.2255
  acre tract and the northeast corner of a called 111.5 acre tract
  described in a deed to Robert Glen Sollis, Jr., recorded in Volume
  2352, Page 222 of said Deed Records;
  THENCE North 89 degrees 21 minutes 25 seconds West, along the common
  line between said 273.2255 acre tract and said 111.5 acre tract, a
  distance of 2591.12 feet to a 5/8-inch iron rod with cap marked
  "PETITT - RPLS 4087" set for the northwest corner of said 111.5 acre
  tract and the northeast corner of said 40 acre tract;
  THENCE South 00 degrees 48 minutes 45 seconds East, along the common
  line between said 111.5 acre tract an said 40 acre tract, a distance
  of 1904.72 feet to a 5/8-inch iron rod with cap marked "PETITT -
  RPLS 4087" set in the approximate center of Hall Cemetery Road for
  the southeast corner of said 40 acre tract;
  THENCE South 89 degrees 13 minutes 54 seconds West, along the
  approximate center of Hall Cemetery Road and the south lines of said
  40 acre tract, said 12.5 acre tract and said 60.2 acre tract, a
  distance of 2582.24 feet to the POINT OF BEGINNING and containing
  470.470 acres of land, more or less.
  TRACT 2
  BEING A TRACT OF LAND SITUATED IN THE J. ARMENDARIS SURVEY, ABSTRACT
  NO. 39, THE J. MARSHALL SURVEY, ABSTRACT NO. 825, AND THE E.
  REYNOLDS SURVEY, ABSTRACT NO. 1008, IN GRAYSON COUNTY, TEXAS, AND
  BEING A PORTION OF A CALLED 57.898 ACRE TRACT DESCRIBED IN A DEED TO
  JOE CLYDE KING RECORDED IN VOLUME 3693, PAGE 147 OF THE DEED RECORDS
  OF GRAYSON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS
  FOLLOWS:
  BEGINNING AT A NAIL FOUND IN THE APPROXIMATE CENTER OF DAVIS ROAD
  (UNDEDICATED PUBLIC ROAD) FOR THE NORTHEAST CORNER OF SAID 57.898
  ACRE TRACT AND THE NORTHWEST CORNER OF A CALLED 29.732 ACRE TRACT OF
  LAND DESCRIBED AS TRACT 1 IN A DEED TO JERRY L. KING AND DONNA KING
  BEDGOOD RECORDED IN VOLUME 2001, PAGE 107 OF SAID DEED RECORDS;
  THENCE ALONG THE COMMON LINE BETWEEN SAID 29.732 ACRE TRACT AND SAID
  57.898 ACRE TRACT AS FOLLOWS:
  SOUTH 26 DEGREES 30 MINUTES 31 SECONDS EAST, A DISTANCE OF 274.02
  FEET TO A 5/8-INCH IRON ROD WITH CAP MARKED "PETITT - RPLS 4087" SET
  FOR CORNER;
  SOUTH 22 DEGREES 04 MINUTES 49 SECONDS EAST, A DISTANCE OF 371.90
  FEET TO A 5/8-INCH IRON ROD WITH CAP MARKED "PETITT - RPLS 4087" SET
  FOR CORNER;
  SOUTH 64 DEGREES 31 MINUTES 10 SECONDS EAST, A DISTANCE OF 174.55
  FEET TO A 5/8-INCH IRON ROD WITH CAP MARKED "PETITT - RPLS 4087" SET
  FOR THE MOST EASTERLY NORTHEAST CORNER OF SAID 57.898 ACRE TRACT AND
  THE NORTHWEST CORNER OF WESTERN HILLS COMMERCIAL, AN ADDITION TO
  THE CITY OF HOWE ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 3,
  PAGE 79 OF THE PLAT RECORDS OF GRAYSON COUNTY, TEXAS;
  THENCE SOUTH 00 DEGREES 54 MINUTES 15 SECONDS EAST, ALONG THE
  EASTERLY LINE OF SAID 57.898 ACRE TRACT AND THE WEST LINE OF SAID
  WESTERN HILLS COMMERCIAL, A DISTANCE OF 360.57 FEET TO A 5/8-INCH
  IRON ROD WITH CAP MARKED "PETITT - RPLS 4087" SET FOR CORNER FROM
  WHICH A 1/2-INCH IRON ROD FOUND FOR THE SOUTHWEST CORNER OF SAID
  WESTERN HILLS COMMERCIAL BEARS SOUTH 00 DEGREES 54 MINUTES 15
  SECONDS EAST, A DISTANCE OF 305.41 FEET;
  THENCE SOUTH 89 DEGREES 31 MINUTES 09 SECONDS WEST, DEPARTING SAID
  EASTERLY AND WEST LINES AND OVER AND ACROSS SAID 57.898 ACRE TRACT,
  A DISTANCE OF 905.24 FEET TO A 5/8-INCH IRON ROD WITH CAP MARKED
  "PETITT - RPLS 4087" SET IN THE WEST LINE OF SAID 57.898 ACRE TRACT
  SAME BEING THE EAST LINE OF A TRACT OF LAND DESCRIBED IN A DEED TO AP
  HOWE LIMITED PARTNERSHIP FILED IN VOLUME 3814, PAGE 898, OF SAID
  DEED RECORDS;
  THENCE NORTH 00 DEGREES 55 MINUTES 04 SECONDS WEST, ALONG SAID EAST
  AND WEST LINES, A DISTANCE OF 1030.55 FEET TO A NAIL FOUND IN THE
  APPROXIMATE CENTER OF SAID DAVIS ROAD FOR THE NORTHWEST CORNER OF
  SAID 57.898 ACRE TRACT AND THE NORTHEAST CORNER OF SAID AP HOWE
  LIMITED PARTNERSHIP TRACT;
  THENCE SOUTH 89 DEGREES 56 MINUTES 50 SECONDS EAST, ALONG THE NORTH
  LINE OF SAID 57.898 ACRE TRACT AND THE APPROXIMATE CENTER OF SAID
  DAVIS ROAD, A DISTANCE OF 160.56 FEET TO A RAILROAD SPIKE FOUND FOR
  AN ANGLE POINT;
  THENCE NORTH 89 DEGREES 31 MINUTES 33 SECONDS EAST, CONTINUING
  ALONG SAID NORTH LINE AND THE APPROXIMATE CENTER OF SAID DAVIS ROAD,
  A DISTANCE OF 335.80 FEET TO THE POINT OF BEGINNING AND CONTAINING
  762,300 SQUARE FEET, OR 17.500 ACRES OF LAND, MORE OR LESS.
         SECTION 5.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 5.04.  This article takes effect immediately if this
  Act 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 article takes effect September 1, 2007.
  ARTICLE 6.  PLATINUM RANCH MUNICIPAL
  UTILITY DISTRICT NO. 1 OF GRAYSON COUNTY
         SECTION 6.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8256 to read as follows:
  CHAPTER 8256. PLATINUM RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF
  GRAYSON COUNTY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 8256.001.  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 Platinum Ranch Municipal
  Utility District No. 1 of Grayson County.
         Sec. 8256.002.  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. 8256.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8256.055 before September 1, 2009:
               (1)  the district is dissolved September 1, 2009,
  except that:
                     (A)  any debts incurred shall be paid;
                     (B)  any assets that remain after the payment of
  debts shall be transferred to Grayson 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.
         Sec. 8256.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 6.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 6.02
  of the article 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
  other indebtedness; or
               (4)  the legality or operation of the district or the
  board.
         Sec. 8256.005.  ANNEXATION INTO CITY OF GUNTER. (a)  
  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 held to confirm
  the creation of the district, the district is not dissolved and
  shall continue in full force and effect.
         (b)  Any future annexation or inclusion of additional
  territory into a district governed by this chapter may not occur
  unless the City of Gunter is allowed to voluntarily annex the same
  territory into the municipality's corporate limits.
         Sec. 8256.006.  DISSOLUTION.  Section 43.074, Local
  Government Code, applies to the dissolution of the district.
  [Sections 8256.007-8256.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8256.051.  DIRECTORS; TERMS.  (a)  The district is
  governed by a board of five directors.
         (b)  Except as provided by Section 8256.053, directors serve
  staggered four-year terms.
         Sec. 8256.052.  ELECTION OF DIRECTORS. On the uniform
  election date in May of each even-numbered year, the appropriate
  number of directors shall be elected.
         Sec. 8256.053.  INITIAL DIRECTORS.  (a)  The initial board
  consists of:
               (1)  Mark McClure;
               (2)  Greg Meador;
               (3)  Lance Hancock;
               (4)  David Howell; and
               (5)  Mark Smith.
         (b)  The terms of the first three directors named in
  Subsection (a) expire on the uniform election date in May 2008, and
  the terms of the last two directors named in Subsection (a) expire
  on the uniform election date in May 2010.
         (c)  This section expires September 1, 2011.
         Sec. 8256.054.  INCORPORATION OF DISTRICT TERRITORY INTO
  MUNICIPALITY REQUIRED. The directors may not hold an election
  under Section 8256.055 until all of the territory of the district is
  included in the corporate limits of the City of Gunter.
         Sec. 8256.055.  CONFIRMATION AND INITIAL DIRECTORS'
  ELECTION.  The initial directors shall hold an election to confirm
  the creation of the district.
  [Sections 8256.056-8256.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 8256.101.  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)  Notwithstanding Subsection (a), the district may not
  act as a retail provider of water or wastewater service.
         (c)  The district shall make the district's water and
  wastewater facilities available to an entity holding the applicable
  certificate of convenience and necessity.
         Sec. 8256.102.  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 turnpikes, or improvements in aid of
  those roads, inside the district.
         (b)  A road project must meet all applicable construction
  standards, subdivision requirements, and regulatory ordinances of
  the municipality in whose corporate limits or extraterritorial
  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. 8256.103.  DIVISION OF DISTRICT.  (a)  The district may
  be divided into two new districts only if:
               (1)  the district has no outstanding bonded debt;
               (2)  the district is not imposing ad valorem taxes; and
               (3)  each new district is within the corporate limits
  of the City of Gunter.
         (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)  At the time of creation, any new district created by the
  division of the district may not contain any land outside the area
  described by Section 6.02 of the article creating this chapter.
  [Sections 8256.104-8256.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8256.151.  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 8256.201.
  [Sections 8256.152-8256.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 8256.201.  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
  8256.101 or 8256.102.
         (b)  The district may not issue bonds to finance projects
  authorized by Section 8256.102 unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election called for that purpose.
         (c)  Bonds or other obligations issued or incurred to finance
  projects authorized by Section 8256.102 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 6.02.  The Platinum Ranch Municipal Utility District
  No. 1 of Grayson County includes all the territory contained in the
  following area:
  All that certain tract or parcel of land situated in the William
  Richards Survey, Abstract Number 998, the Robert Mason Survey,
  Abstract Number 784, the J.R. Worral Survey, Abstract Number 1357,
  and the William Wells Survey, Abstract Number 1354, County of
  Grayson, State of Texas and being all that called 339.24 acre tract
  of land as described in Deed to Platinum Ranch Venture, LTD, filed
  16 February 2001 and recorded in Volume 3033 Page 185 of the Deed
  Records of the County of Grayson, State of Texas, and being all that
  called 300.264 acre tract of land as described in Deed to Platinum
  Ranch Venture, LTD, filed 16 February 2001 and recorded in Volume
  3033 Page 189 of said Deed Records, and being all that called 100.00
  acre tract of land as described in Deed to Platinum Ranch Venture,
  LTD, filed 01 March 2001 and recorded in Volume 3038 Page 100 of
  said Deed Records, and being all that called 851.808 acre tract of
  land as described in Deed to Platinum Ranch Venture, LTD, filed 16
  May 2001 and recorded in Volume 3072 Page 217 of said Deed Records,
  and being all that called 78.427 acre tract of land as described in
  Deed to Platinum Ranch Venture, LTD, filed 23 May 2002 and recorded
  in Volume 3253 Page 743 of said Deed Records, and being more fully
  described as follows:
  BEGINNING for the Southeast corner of the tract being described
  herein at a found 1\2 inch iron rod at the intersection of Old
  Scaggs School Road and Merilee Roads for the Southeast corner of
  said 851.808 acre tract, said rod being on the South line of said
  Mason Survey;
  Thence: South 89 degrees 57 minutes 55 seconds West, with the South
  line of said 851.808 acre tract and said Mason Survey, along the
  centerline of said Marilee Road, a distance of 3186.43 feet to a
  found 1\2 inch iron rod for the Southwest corner of said 851.808
  acre tract and the Southeast corner of said 329.424 acre tract;
  Thence: North 89 degrees 22 minutes 52 seconds West, with the South
  line of said 329.424 acre tract, continuing along the centerline of
  said road, and passing at 4174.77 feet the Southwest corner of said
  329.424 acre tract and the Southeast corner of said 100.00 acre
  tract, and continuing along said course, a total distance of
  5198.85 feet to a found 1\2 inch steel square tube for corner at the
  intersection of said Marilee Road and County Road Number 10;
  Thence: North 88 degrees 59 minutes 54 seconds West, continuing
  with the South line of said 100.00 acre tract, along the centerline
  of said Marilee Road, a distance of 244.55 feet to a found 1\2 inch
  steel square tube at the intersection of said Marilee Road and Blame
  Road for the Southwest corner of said 100.00 acre tract;
  Thence: North 00 degrees 07 minutes 57 seconds West, with the West
  line of said 100.00 acre tract, along the centerline of said Blaine
  Road, and passing at 3425.72 feet the Northwest corner of said
  100.00 acre tract and the Southwest corner of said 300.264 acre
  tract, and continuing along said course and road, and passing at
  5630.58 feet the Northwest corner of said 300.264 acre tract and the
  Southwest corner of said 78.427 acre tract, and continuing along
  said course and road, a total distance of 7236.34 feet to a found
  1\2 inch steel square tube at the intersection of said Blaine Road
  and Jaresh Road for the Northwest corner of said 78.427 acre tract;
  Thence: North 88 degrees 26 minutes 13 seconds East, with the North
  line of said 78.427 acre tract, along the centerline of said Jaresh
  Road, a distance of 2076.20 feet to a found 1\2 inch iron rod for the
  Northeast corner of said 78.427 acre tract;
  Thence: South 01 degrees 09 minutes 52 seconds East, with the East
  line of said 78.427 acre tract, and passing at 14.0 feet a cross-tie
  fence corner post on the South side of said Jaresh Road, and
  continuing along said course, along and near a fence, a total
  distance of 1662.51 feet to a found 1\2 inch steel square tube for
  the Southeast corner of said 78.427 acre tract, said tubing being on
  the North line of said 300.264 acre tract, said tubing also being
  the Southwest corner of a called 252.043 tract of land as described
  in Deed to Ronald Evans Box, et ux Nita Gay Box, filed 15 December
  1992 and recorded in Volume 2246 Page 173 of said Deed Records;
  Thence: North 89 degrees 32 minutes 42 seconds East, with the North
  line of said 300.264 acre tract and the South line of said Box
  tract, with a fence, a distance of 1771.60 feet to a bois d' arc post
  for corner;
  Thence: North 89 degrees 04 minutes 11 seconds East, continuing
  with the North line of said 300.264 acre tract and the South line of
  said Box tract, with a fence, a distance of 1940.19 feet to a
  cross-tie fence corner post for an ell corner of this tract, said
  corner also being the Southeast corner of said Box tract;
  Thence: North 00 degrees 40 minutes 31 seconds West, with the West
  line of said 851.808 acre tract and the East line of said Box tract,
  along and near a fence, a distance of 1208.96 feet to a wood fence
  corner post for an ell corner of this tract and a Northeast corner
  of said Box tract;
  Thence: South 87 degrees 48 minutes 54 seconds West, continuing
  with the West line of said 851.808 acre tract and the East line of
  said Box tract, along and near a fence, a distance of 1749.62 feet
  to a pipe fence corner post for corner;
  Thence: North 01 degrees 29 minutes 27 seconds West, continuing
  with the West line of said 851.808 acre tract and the East line of
  said Box tract, along and near a fence, a distance of 1664.74 feet
  to a pipe fence corner post for corner;
  Thence: North 87 degrees 51 minutes 31 seconds East, continuing
  with the West line of said 851.808 acre tract and the East line of
  said Box tract, along and near a fence, 849.86 feet to a pipe fence
  corner post for corner;
  Thence: North 01 degrees 26 minutes 50 seconds West, continuing
  with the West line of said 851.808 acre tract and the East line of
  said Box tract, along and near a fence, a distance of 1216.06 feet
  to a pipe fence corner post for the Northwest corner of said 851.808
  acre tract, said post also being the Southwest corner of a called
  374.17 acre tract of land as described in Deed to Martinek Grain &
  Bins, Inc., filed 01 June 1993 and recorded in Volume 2272 Page 912
  of said Deed Records;
  Thence: North 87 degrees 58 minutes 36 seconds East, with the North
  line of said 851.808 acre tract and the South line of said 374.17
  acre tract, with the general course of a fence, a distance of 973.27
  feet to a wood post for corner;
  Thence: North 87 degrees 53 minutes 22 seconds East, continuing
  with the North line of said 851.808 acre tract and the South tine of
  said 374.17 acre tract, with said fence, a distance of 1091.88 feet
  to a wood fence corner post for corner;
  Thence: North 89 degrees 57 minutes 15 seconds East, continuing
  with the North line of said 851.808 acre tract and the South line of
  said 374.17 acre tract, with said fence, a distance of 1491.72 feet
  to a cross-tie fence corner post for the Northeast corner of said
  851.808 acre tract, said post also being the most Westerly
  Northwest corner of a called 178.842 acre tract of land as described
  in Deed to Martinek Grain & Bins, Inc., dated 03 August 1994 and
  recorded in Volume 2352 Page 18 of said Deed Records;
  Thence: South 02 degrees 33 minutes 15 seconds East, with the East
  line of said 851.808 acre tract, along and near a fence, a distance
  of 960.89 feet to a found 1\2 inch iron rod for a Southwest corner of
  said 178.842 acre tract, said rod also being the Northwest corner of
  a called 112.268 acre tract of land as described in Deed to Marion
  Cole, et ux Linda Cole, dated 27 May 1999 and recorded in Volume
  2796 Page 848 of said Deed Records;
  Thence: South 02 degrees 57 minutes 08 seconds East, continuing
  with the East line of said 851.808 acre tract and the West line of
  said Cole tract, along and near a fence, a distance of 1552.77 feet
  to a found 1\2 inch iron rod for the Southwest corner of said Cole
  tract;
  Thence: South 89 degrees 54 minutes 04 seconds East, continuing
  with the East line of said 851.808 acre tract and the South line of
  said Cole tract, along and near a fence, and passing a cross-tie
  fence corner post on the West side of Old Skaggs School Road, and
  continuing along said course, a distance of 3118.80 feet to a set
  1\2 inch steel square tube with a plastic cap marked COX 4577 in the
  centerline of said Old Skaggs School Road for the Southeast corner
  of said Cole tract;
  Thence: South 00 degrees 04 minutes 13 seconds East, continuing
  with the East line of said 851.808 acre tract, along the center of
  said Old Skaggs School Road, a distance of 1561.21 feet to a found
  1\2 inch iron rod for corner, said road making a turn to the West at
  this corner;
  Thence: North 89 degrees 46 minutes 04 seconds West, continuing
  with the East line of said 851.808 acre tract, along the center of
  said Old Skaggs School Road, a distance of 3072.50 feet to a found
  nail for corner, said nail being at a turn of said Old Skaggs School
  Road;
  Thence: South 00 degrees 51 minutes 03 seconds East, continuing
  with the East line of said 851.808 acre tract, along the center of
  said Old Scaggs School Road, a distance of 5800.26 feet to the POINT
  OF BEGINNING and containing 1659.998 acres of land.
         SECTION 6.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 6.04.  This article takes effect September 1, 2007.
  ARTICLE 7.  SANGANI RANCH MUNICIPAL
  UTILITY DISTRICT NO. 1 OF GRAYSON COUNTY
         SECTION 7.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8258 to read as follows:
  CHAPTER 8258. SANGANI RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF
  GRAYSON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8258.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Sangani Ranch Municipal
  Utility District No. 1 of Grayson County.
         Sec. 8258.002.  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.
         Sec. 8258.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8258.023 before September 1, 2009:
               (1)  the district is dissolved September 1, 2009,
  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, 2012.
         Sec. 8258.004.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 7.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 7.02
  of the article 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.
  [Sections 8258.005-8258.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8258.021.  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
  8258.023; or
               (2)  the date this chapter expires under Section
  8258.003.
         Sec. 8258.022.  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.
         Sec. 8258.023.  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 7.02 of the article creating this
  chapter.
         Sec. 8258.024.  INITIAL ELECTED DIRECTORS; TERMS.  The
  directors elected under Section 8258.023 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.
         Sec. 8258.025.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8258.026-8258.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8258.051.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
  [Sections 8258.052-8258.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8258.101.  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. 8258.102.  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.
         Sec. 8258.103.  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, subdivision requirements, and regulations of each
  municipality in whose corporate limits or extraterritorial
  jurisdiction the district is located.
         Sec. 8258.104.  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.
         Sec. 8258.105.  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 7.02 of the
  article creating this chapter; or
               (2)  outside the corporate limits of the city of
  Gunter.
         Sec. 8258.106.  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.
  [Sections 8258.107-8258.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8258.151.  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 8258.201.
  [Sections 8258.152-8258.200 reserved for expansion]
  SUBCHAPTER E.  BONDS
         Sec. 8258.201.  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
  8258.101 or 8258.103.
         (b)  The district may not issue bonds or other obligations to
  finance projects authorized by Section 8258.103 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 8258.103 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 7.02.  The Sangani Ranch Municipal Utility District
  No. 1 of Grayson County includes all the territory contained in the
  following area:
  Tract 1
  All that certain tract or parcel of land situated in the A. S. A.
  Hartfield Survey, Abstract Number 490, Grayson County, Texas, and
  being part of a called Tract No. 3 as described in a deed from Jack
  A. Turpin to JMS & Co., a Texas General Partnership as recorded in
  Volume 1963, Page 451, Deed Records of Grayson County, Texas, and
  being more particularly described as follows:
  Beginning at a 1/2" iron rod found in the south line of said Tract
  No. 3 and in the east right-of-way line of State Highway 289 and
  also in an asphalt road under apparent public use posted as Mackey
  Road;
  Thence North 00 Degrees 32 Minutes 59 Seconds West with the said
  east monumented right-of-way line and generally with a fence line,
  a distance of 114.58 feet to a right-of-way monument found for
  corner;
  Thence North 45 Degrees 35 Minutes 10 Seconds East with the said
  east monumented right-of-way line and generally with a fence line,
  a distance of 180.50 feet to a right-of-way monument found for
  corner;
  Thence North 40 Degrees 07 Minutes 07 Seconds East with the said
  east right-of-way line and generally with a fence line, a distance
  of 329.14 feet to a 1/2" capped iron rod set for corner;
  Thence North 45 Degrees 35 Minutes 13 Seconds East with the said
  east right-of-way line and generally with a fence line, a distance
  of 1391.07 feet to a 1/2'' capped iron rod set for corner;
  Thence North 51 Degrees 15 Minutes 05 Seconds East with the said
  east monumented right-of-way line and generally with a fence line,
  a distance of 494.20 feet to a concrete monument for corner;
  Thence North 45 Degrees 35 Minutes 13 Seconds East with the said
  east right-of-way line and generally with a fence line, a distance
  of 131.23 feet to a l/2" capped iron rod set for corner;
  Thence North 42 Degrees 32 Minutes 58 Seconds East with the said
  east monumented right-of-way line and generally with a fence line,
  a distance of 3 15.33 feet to a concrete monument for corner;
  Thence North 45 Degrees 35 Minutes 13 Seconds East with the said
  east right-of-way line and generally with a fence line, a distance
  of 98.43 feet to a 1/2" capped iron rod set for corner;
  Thence North 40 Degrees 15 Minutes 20 Seconds East with the said
  east right-of-way line and generally with a fence line, a distance
  of 354.85 feet to a 1/2" capped iron rod set for the north corner of
  said Tract No. 3 and at the northwest corner of a called 26.14 acre
  tract of land described in a deed to Penny S. Avery as recorded in
  Volume 2670, Page 802, Deed Records of Grayson County, Texas;
  Thence South 01 Degrees 16 Minutes 21 Seconds East with the east
  line of said Tract No. 3 and with the west line of said 26.14 acre
  tract and also with or near a fence line, passing a 1/2" iron rod
  found at 2400.96 feet and continuing along said coarse for a total
  distance of 2425.74 feet to a 60 D nail found at the southeast comer
  of said Tract No. 3 and at the southwest corner of said 26.14 acre
  tract and also in said asphalt road;
  Thence South 89 Degrees 39 Minutes 37 Seconds West with the south
  line of said Tract No. 3 and along said asphalt road, a distance of
  2379.51 feet to the POINT OF BEGINNING and containing in total
  69.234 acres of land and in the occupied road way and a total of
  1.413 acres of land.
  Tract 2
  All that certain tract or parcel of land situated in the A. S. A.
  Hartfield Survey, Abstract Number 490, Grayson County, Texas, and
  being part of a called Tract No. 2 as described in a deed from Jack
  A. Turpin to JMS & Co., a Texas General Partnership as recorded in
  Volume 1963, Page 451, Deed Records of Grayson County, Texas, and
  being more particularly described as follows:
  Beginning at a 1/2" capped iron rod set at the southwest corner of
  said Tract No. 2 and in an asphalt road under apparent public use
  posted as Fallow Road and also in the west line of said Hartfield
  Survey;
  Thence North 00 Degrees 57 Minutes 46 Seconds East with the west
  line of said Tract No. 2 and along said asphalt road most of the way
  and also with the said west line, a distance of 1786.81 feet to a
  1/2" capped iron rod set for corner in the southeast right-of-way
  line of S.C. & S.F. RAILROAD;
  Thence North 12 Degrees 29 Minutes 16 Seconds East with the west
  line of said Tract No, 2 and with the said southeast right-of-way
  line, a distance of 1260.61 feet to a 1/2" capped iron rod set for
  corner at the start of a curve to the right having a radius of
  3699.71 feet;
  Thence with said curve to the right and with the said west line and
  also with the said southeast right-of-way line an arc length of
  991.94 feet and said curve having a chord bearing of North 20
  Degrees 16 Minutes 14 Seconds East, a distance of 988.97 feet to a
  1/2" capped iron rod set for corner at the start of a curve to the
  right having a radius of 3772.73 feet;
  Thence with said curve to the right and with the said west line and
  also with the said southeast right-of-way line an arc length
  1350.21 feet and said curve having a chord bearing of North 38
  Degrees 02 Minutes 43 Seconds East, a distance of 1343.02 feet to a
  60 D nail found at the northwest corner of said Tract No. 2 and in an
  asphalt road under apparent public use posted as Savage Road;
  Thence South 89 Degrees 33 Minutes 30 Seconds East with the north
  line of said Tract No. 2 and along said asphalt road, a distance of
  969.10 feet to a 60 D nail found for corner;
  Thence South 89 Degrees 58 Minutes 51 Seconds East with the said
  north line and along said asphalt road, a distance of 2702.37 feet
  to a point for the northeast corner of said Tract No. 2 and in the
  west right-of-way line of State Highway 289;
  Thence South 00 Degrees 40 Minutes 28 Seconds West with the said
  west monumented right-of-way line, a distance of 198.93 feet to a
  1/2" iron rod found in concrete for corner;
  Thence South 45 Degrees 35 Minutes 18 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 967.85 feet to a brass capped monument found for
  corner;
  Thence South 51 Degrees 18 Minutes 23 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 494.83 feet to a brass capped monument found for
  corner;
  Thence South 45 Degrees 49 Minutes 03 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 97.35 feet to a brass capped monument found for
  corner;
  Thence South 39 Degrees 52 Minutes 13 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 494.65 feet to a brass capped monument found for
  corner;
  Thence South 45 Degrees 35 Minutes 18 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 1205.10 feet to a brass capped monument found for
  corner;
  Thence South 51 Degrees 19 Minutes 11 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 329.75 feet to a brass capped monument found for
  corner;
  Thence South 45 Degrees 28 Minutes 36 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 98.33 feet to a brass capped monument found for
  corner;
  Thence South 48 Degrees 35 Minutes 13 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 315.45 feet to a brass capped monument found for
  corner;
  Thence South 45 Degrees 56 Minutes 27 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 130.31 feet to a brass capped monument found for
  corner;
  Thence South 39 Degrees 47 Minutes 37 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 495.56 feet to a brass capped monument found for
  corner;
  Thence South 45 Degrees 35 Minutes 13 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 1226.52 feet to a concrete monument found for corner;
  Thence South 51 Degrees 18 Minutes 15 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 494.51 feet to a concrete monument found for corner;
  Thence South 46 Degrees 15 Minutes 32 Seconds West with the said
  west monumented right-of-way line and generally near a fence line,
  a distance of 97.79 feet to a concrete monument found for corner;
  Thence South 37 Degrees 09 Minutes 28 Seconds West with the said
  west right-of-way line, a distance of 409.29 feet to a 1/2" capped
  iron rod set at the southeast corner of said Tract No. 2;
  Thence South 89 Degrees 39 Minutes 37 Seconds West with the south
  line of said Tract No. 2, a distance of 261.85 feet to the POINT OF
  BEGINNING and containing in total 278.933 acres of land and in the
  occupied in roadway and a total of 6.477 acres of land.
  Tract 3
  All that certain tract or parcel of land situated in the A. S. A.
  Hartfield Survey, Abstract Number 490, Grayson County, Texas, and
  being all of a called Tract No. 1 and all of a called Tract No. 4 as
  described in a deed from Jack A. Turpin to JMS & Co., a Texas General
  Partnership as recorded in Volume 1963, Page 451, Deed Records of
  Grayson County, Texas, and being more particularly described as
  follows:
  Beginning at a 1/2" capped iron rod set at the northwest corner of
  said Tract No. 1 and at the northwest corner of said Hartfield
  Survey and also in an asphalt road under apparent public use posted
  as Fallow Road;
  Thence South 89 Degrees 33 Minutes 30 Seconds East with the north
  line of said Tract No. 1 and with the north line of said Hartfield
  Survey, a distance of 1212.54 feet to a 60 D nail found for the
  northeast corner of said Tract No. 4 and in an asphalt road under
  apparent public use posted as Savage Road and in the northwest
  right-of-way line of S.C. & S.F. RAILROAD and also in a curve to the
  left having a radius of 3872.73 feet;
  Thence with said curve to the left and with the said northwest
  right-of-way line an arc length of 1276.90 feet and said curve
  having a chord bearing of South 37 Degrees 14 Minutes 32 Seconds
  West, a distance of 1271.12 feet to a 1/2" capped iron rod set for
  corner at the start of a curve to the left having a radius of 3799.71
  feet;
  Thence with said curve to the left and with said northwest line an
  arc length of 1018.75 feet and said curve having a chord bearing of
  South 20 Degrees 16 Minutes 14 Seconds West, a distance of 1015.70
  feet to a 1/2" capped iron rod set for corner;
  Thence South 12 Degrees 29 Minutes 16 Seconds West with the said
  northwest right-of-way line, a distance of 771.10 feet to a 60 D
  nail set for the south corner of said Tract No. 1 and in said Fallow
  Road and also in the west line of said Hartfield Survey;
  Thence North 00 Degrees 57 Minutes 32 Seconds East with the west
  line of said Tract No. 1 and with the said west line and also with
  said Fallow Road, a distance of 1721.54 feet to a 60 D nail set for
  corner;
  Thence North 01 Degrees 57 Minutes 45 Seconds East with the west
  line of said Tract No. 1 and with the said west line and also with
  said Fallow Road, a distance of 866.75 feet to a 60 D nail set for
  corner;
  Thence North 06 Degrees 54 Minutes 43 Seconds East with the west
  line of said Tract No. 1, a distance of 140.40 feet to the POINT OF
  BEGINNING and containing in total 26.861 acres of land and in an
  occupied road way and a total of 2.173 acres of land.
         SECTION 7.03.  (a) The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 7.04.  This article takes effect September 1, 2007.
  ARTICLE 8.  FOUR SEASONS RANCH MUNICIPAL
  UTILITY DISTRICT NO. 1 OF DENTON COUNTY
         SECTION 8.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8208 to read as follows:
  CHAPTER 8208. FOUR SEASONS RANCH MUNICIPAL UTILITY DISTRICT NO. 1
  OF DENTON COUNTY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8208.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Four Seasons Ranch Municipal
  Utility District No. 1 of Denton County.
         Sec. 8208.002.  NATURE OF DISTRICT. The district is a
  municipal utility district in Denton County created under and
  essential to accomplish the purposes of Section 59, Article XVI,
  Texas Constitution.
         Sec. 8208.003.  CONFIRMATION ELECTION REQUIRED. If the
  creation of the district is not confirmed at a confirmation
  election held under Section 8208.024 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 Denton 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.
         Sec. 8208.004.  INITIAL DISTRICT TERRITORY. (a)  The
  district is initially composed of the territory described by
  Section 9.02 of the article creating this chapter.
         (b)  The boundaries and field notes contained in Section 9.02
  of the article 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
  other indebtedness; or
               (4)  the legality or operation of the board.
  [Sections 8208.005-8208.020 reserved for expansion]
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 8208.021.  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
  8208.024; or
               (2)  the date this subchapter expires under Section
  8208.026.
         Sec. 8208.022.  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.
         Sec. 8208.023.  CONSENT OF MUNICIPALITY REQUIRED.  The
  temporary directors may not hold an election under Section 8208.024
  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.
         Sec. 8208.024.  CONFIRMATION AND INITIAL DIRECTORS'
  ELECTION. 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. 8208.025.  INITIAL ELECTED DIRECTORS; TERMS. The
  directors elected under Section 8208.024 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.
         Sec. 8208.026.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2014.
  [Sections 8208.027-8208.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8208.051.  DIRECTORS; TERMS. (a)  The district is
  governed by a board of five directors.
         (b)  Directors serve staggered four-year terms.
         Sec. 8208.052.  ELECTION OF DIRECTORS.  On the uniform
  election date in May of each even-numbered year, the appropriate
  number of directors shall be elected.
  [Sections 8208.053-8208.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8208.101.  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. 8208.102.  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 of each municipality in whose corporate
  limits or extraterritorial jurisdiction 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.
         (d)  The district shall, at its sole cost and expense,
  maintain, improve, operate, and repair all roads constructed or
  acquired by the district unless the municipality or county in which
  a road is located voluntarily assumes the obligation.  An
  assumption of an obligation under this subsection is not valid or
  binding unless the assumption is in writing, executed by the
  necessary parties, and filed in the land records of the county in
  which the road is located.
         Sec. 8208.103.  COMPLIANCE WITH MUNICIPAL ORDINANCES OR
  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.
         Sec. 8208.104.  ANNEXATION OF LAND IN GRAYSON COUNTY.  The
  district may not annex land located in Grayson County without the
  prior consent of the Commissioners Court of Grayson County.
         Sec. 8208.105.  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)  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 9.02 of the article creating this chapter.
  [Sections 8208.106-8208.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8208.151.  TAX TO REPAY BONDS.  The district may impose
  a tax to pay the principal of and interest on bonds issued under
  Section 8208.201.
  [Sections 8208.152-8208.200 reserved for expansion]
  SUBCHAPTER E. BONDS
         Sec. 8208.201.  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, and to finance the
  construction, maintenance, or operation of projects under Sections
  8208.101 and 8208.102.
         (b)  The district may not issue bonds to finance projects
  authorized by Section 8208.102 unless the issuance is approved by a
  vote of a two-thirds majority of district voters voting at an
  election called for that purpose.
         (c)  Bonds or other obligations issued or incurred to finance
  projects authorized by Section 8208.102 may not exceed one-fourth
  of the assessed value of the real property in the district.
         SECTION 8.02.  The Four Seasons Ranch Municipal Utility
  District No. 1 of Denton County initially includes all the
  territory contained in the following area:
  All that certain tract or parcel of land situated in the Juana
  Curbello Survey, Abstract Number 213, and the A. H. Gee Survey,
  Abstract Number 1522, County of Denton, State of Texas, said tract
  being all of a Tract, as described in deed to Sadot Venture, LTD ,
  filed 03 December 2003, and recorded in clerk number 2003-195563,
  and being all of a tract as described in deed to McKinney 17 Venture
  L.T.D., filed 28 May 2002, and recorded in volume 3257 page 22 of
  the Deed Records of the County of Grayson, State of Texas, and
  recorded in volume 5094 page 2020 of the Deed Records of the County
  of Denton, State of Texas, said tract being all of a Tract, as
  described in deed to Sadot Venture, LTD , filed 17 December 2003,
  and recorded in clerk number 2003-203006, and being all of a tract
  as described in deed to Netzer Environmental Consulting, filed 28
  May 2002, and recorded in volume 5094 page 2014 of the Deed Records
  of the County of Denton, State of Texas and being more fully
  described as follows:
  Beginning for the southwest corner of the tract being described
  herein at a found 1\2 inch rebar at the intersection of Garell Road
  and Fritcher Road, said rebar being the southwest corner of said
  Brock South tract;
  Thence:  North 00 degrees 32 minutes 08 seconds West, with the west
  line of said Brock South tract, and with the center of said Garell
  Road, a distance of 2487.12 feet to a found 1\2 inch rebar for an
  angle point in the west line of said Brock South tract, same being
  an angle point in said road;
  Thence:  North 00 degrees 01 minutes 19 seconds West, with the west
  line of said Brock South tract, and with the center of said road, a
  distance of 1439.64 feet to a found 1\2 inch rebar for the northwest
  corner of said Brock South tract, same being a turn in said road;
  Thence:  North 86 degrees 29 minutes 35 seconds East, with the north
  line of said Brock South tract, and with the center of said road, a
  distance of 256.11 feet to a found 1\2 inch rebar for an ell corner
  of this tract, and said rebar being the southwest corner of said
  Street tract, same being a turn in said road, said rebar also being
  an angle point in the north line of said Brock South tract;
  Thence:  North 02 degrees 34 seconds 12 seconds East, with the west
  line of said Netzer tract, and with the center of said road, a
  distance of 2019.60 feet to a point for an ell corner of this tract;
  Thence:  North 89 degrees 56 minutes 50 seconds East, a distance of
  27.25 feet to a found 1\2 inch steel rebar for a corner of this
  tract;
  Thence:  North 02 degrees 25 seconds 53 seconds East, with the west
  line of said Venture tract, and with the east side of said road, a
  distance of 1028.83 feet to a point for an ell corner of this tract;
  Thence:  North 89 degrees 53 minutes 08 seconds East, a distance of
  521.59 feet to a found 1\2 inch rebar;
  Thence:  North 00 degrees 00 minutes 32 seconds East, with the west
  line of said venture tract, a distance of 4225.1 feet to a found 1\2
  inch steel square tubing for the northwest corner of said Venture
  tract;
  Thence:  North 89 degrees 31 minutes 51 seconds East, with the north
  line of said Venture tract, a distance of 866.39 feet to a set 1\2
  inch steel square tubing for an ell corner of this tract;
  Thence:  South 00 degrees 06 minutes 09 seconds East, a distance of
  18.01 feet to a set 1\2 inch steel square tubing for an ell corner of
  this tract;
  Thence:  North 89 degrees 45 minutes 28 seconds East, with the north
  line of said Brock North tract, and with the center of said road, a
  distance of 1130.35 feet for a corner of this tract;
  Thence:  South 00 degrees 07 minutes 51 seconds East, with the
  approximate location of the county line, a distance of 2818.67 feet
  for a corner of this tract;
  Thence:  North 89 degrees 45 minutes 28 seconds East, with the
  approximate location of the county line a distance of 2100.00 feet
  for a corner of this tract;
  Thence:  South 89 degrees 59 minutes 54 seconds East, a distance of
  244.55 feet to a found 1\2 inch steel square tubing, said tubing
  being in the intersection of Merilee Road and County Road Number 10;
  Thence:  South 00 degrees 17 minutes 37 seconds East, with the
  center of said road, a distance of 1409.82 feet to a found 1\2 inch
  rebar;
  Thence:  South 00 degrees 18 minutes 38 seconds East, with the east
  line of said Street tract, and with the center of said road, and
  passing at 3031.32 feet the southeast corner of said Street tract,
  same being the northeast corner of said Brock South tract, and
  continuing on said course a total distance of 3071.37 feet to a
  found 1\2 inch rebar for an angle point in said road;
  Thence:  South 00 degrees 23 minutes 56 seconds East, with the east
  line of said Brock South tract, and with the center of said road, a
  distance of 1104.84 feet to a found 1\2 inch rebar for the most
  easterly southeast corner of said Brock South tract;
  Thence:  North 89 degrees 30 minutes 05 seconds West, a distance of
  27.25 feet to a old wood fence corner post;
  Thence:  South 00 degrees 19 minutes 28 seconds East, with the east
  line of said road, a distance of 1292.99 feet to a pipe fence corner
  post for an ell corner of this tract;
  Thence:  North 89 degrees 31 minutes 21 seconds West, with the south
  line of said Venture tract, a distance of 3326.78 feet to a pipe
  fence corner post for an ell corner of said Venture South tract;
  Thence:  South 00 degrees 41 minutes 02 seconds East, a distance of
  1534.63 feet to a found nail for the southeast corner of said
  Venture tract, said nail being in the center of Fritcher Road;
  Thence:  North 89 degrees 30 minutes 14 seconds West, with the south
  line of said Venture tract, and with the center of said road, a
  distance of 527.38 feet to a found 1\2 inch rebar for an ell corner
  of said Venture tract;
  Thence:  South 89 degrees 34 minutes 19 seconds West, with the south
  line of said Venture tract, and with the center of said road, a
  distance of 1437.85 feet to the POINT OF BEGINNING and containing
  979.408 acres of land.
         SECTION 8.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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 article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article 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 article are
  fulfilled and accomplished.
         SECTION 8.04.  This article takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4069 was passed by the House on May
  11, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4069 on May 24, 2007, by the following vote:  Yeas 143, Nays 1,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4069 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor