|   | 
|   | 
|   | 
| 
 
			 | 
AN ACT
 | 
| 
 
			 | 
relating to the creation of the Lake Texoma Municipal Utility  | 
| 
 
			 | 
District No. 1; providing authority to impose a tax or assessment  | 
| 
 
			 | 
and issue bonds; granting a limited power of eminent domain. | 
| 
 
			 | 
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
| 
 
			 | 
       SECTION 1.  Subtitle F, Title 6, Special District Local Laws  | 
| 
 
			 | 
Code, is amended by adding Chapter 8359 to read as follows: | 
| 
 
			 | 
CHAPTER 8359.  LAKE TEXOMA MUNICIPAL UTILITY DISTRICT NO. 1 | 
| 
 
			 | 
SUBCHAPTER A.  GENERAL PROVISIONS | 
| 
 
			 | 
       Sec. 8359.001.  DEFINITIONS.  In this chapter: | 
| 
 
			 | 
             (1)  "Board" means the district's board of directors. | 
| 
 
			 | 
             (2)  "Director" means a board member. | 
| 
 
			 | 
             (3)  "District" means the Lake Texoma Municipal Utility  | 
| 
 
			 | 
District No. 1. | 
| 
 
			 | 
       Sec. 8359.002.  NATURE OF DISTRICT.  The district is a  | 
| 
 
			 | 
municipal utility district created under Section 59, Article XVI,  | 
| 
 
			 | 
Texas Constitution. | 
| 
 
			 | 
       Sec. 8359.003.  CONFIRMATION AND DIRECTORS' ELECTION  | 
| 
 
			 | 
REQUIRED.  (a)  The temporary directors shall hold an election to  | 
| 
 
			 | 
confirm the creation of the district and to elect five permanent  | 
| 
 
			 | 
directors as provided by Section 49.102, Water Code. | 
| 
 
			 | 
       (b)  The temporary directors of any new district created  | 
| 
 
			 | 
under Section 8359.108 may not hold an election under Subsection  | 
| 
 
			 | 
(a) until the earlier of: | 
| 
 
			 | 
             (1)  the date the land in the new district has been  | 
| 
 
			 | 
annexed by the City of Denison; or | 
| 
 
			 | 
             (2)  not later than the 180th day after the date the  | 
| 
 
			 | 
City of Denison receives a written petition from a landowner  | 
| 
 
			 | 
requesting annexation that the city does not grant. | 
| 
 
			 | 
       (c)  The petition described by Subsection (b) must: | 
| 
 
			 | 
             (1)  request annexation of land that is contiguous with  | 
| 
 
			 | 
a boundary of the City of Denison; | 
| 
 
			 | 
             (2)  include all the land in the new district; | 
| 
 
			 | 
             (3)  include land covered by the development agreement  | 
| 
 
			 | 
executed under Section 8359.004; | 
| 
 
			 | 
             (4)  include the landowner's consent to abide by the  | 
| 
 
			 | 
comprehensive land use plan and development regulations as defined  | 
| 
 
			 | 
in the development agreement; and | 
| 
 
			 | 
             (5)  if the development agreement for the land included  | 
| 
 
			 | 
in the new district expires before a new district is created under  | 
| 
 
			 | 
Section 8359.108, include the landowner's consent to reinstate the  | 
| 
 
			 | 
comprehensive land use plan and development regulations defined in  | 
| 
 
			 | 
the expired development agreement. | 
| 
 
			 | 
       Sec. 8359.004.  DEVELOPMENT AGREEMENT REQUIRED.  The  | 
| 
 
			 | 
temporary directors may not hold an election under Section 8359.003  | 
| 
 
			 | 
until the City of Denison and the owners of the land to be covered by  | 
| 
 
			 | 
a development agreement that covers all or part of the land in the  | 
| 
 
			 | 
district enter into the development agreement under Chapter 212,  | 
| 
 
			 | 
Local Government Code. | 
| 
 
			 | 
       Sec. 8359.005.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT.  (a)   | 
| 
 
			 | 
The district is created to serve a public purpose and benefit. | 
| 
 
			 | 
       (b)  All land and other property included in the district  | 
| 
 
			 | 
will benefit from the improvements and services to be provided by  | 
| 
 
			 | 
the district under powers conferred by Section 52, Article III, and  | 
| 
 
			 | 
Section 59, Article XVI, Texas Constitution, and under this  | 
| 
 
			 | 
chapter. | 
| 
 
			 | 
       (c)  The district is created to accomplish the purposes of: | 
| 
 
			 | 
             (1)  a municipal utility district as provided by  | 
| 
 
			 | 
general law and Section 59, Article XVI, Texas Constitution; and | 
| 
 
			 | 
             (2)  Section 52, Article III, Texas Constitution, that  | 
| 
 
			 | 
relate to the construction, acquisition, improvement, operation,  | 
| 
 
			 | 
or maintenance of macadamized, graveled, or paved roads, or  | 
| 
 
			 | 
improvements, including storm drainage, in aid of those roads. | 
| 
 
			 | 
       Sec. 8359.006.  INITIAL DISTRICT TERRITORY.  (a)  The  | 
| 
 
			 | 
district is initially composed of the territory described by  | 
| 
 
			 | 
Section 2 of the Act creating this chapter. | 
| 
 
			 | 
       (b)  The boundaries and field notes contained in Section 2 of  | 
| 
 
			 | 
the Act creating this chapter form a closure.  A mistake made in the  | 
| 
 
			 | 
field notes or in copying the field notes in the legislative process  | 
| 
 
			 | 
does not affect the district's: | 
| 
 
			 | 
             (1)  organization, existence, or validity; | 
| 
 
			 | 
             (2)  right to issue any type of bond for the purposes  | 
| 
 
			 | 
for which the district is created or to pay the principal of and  | 
| 
 
			 | 
interest on a bond; | 
| 
 
			 | 
             (3)  right to impose a tax or assessment; or | 
| 
 
			 | 
             (4)  legality or operation. | 
| 
 
			 | 
       Sec. 8359.007.  ELIGIBILITY FOR INCLUSION IN TAX INCREMENT  | 
| 
 
			 | 
REINVESTMENT ZONE.  (a)  All or any part of the district is eligible  | 
| 
 
			 | 
to be included in a tax increment reinvestment zone created under  | 
| 
 
			 | 
Chapter 311, Tax Code. | 
| 
 
			 | 
       (b)  If the City of Denison creates a tax increment  | 
| 
 
			 | 
reinvestment zone described by Subsection (a) that includes all or  | 
| 
 
			 | 
part of the territory of the district, the City of Denison and the  | 
| 
 
			 | 
board of directors of the zone, by contract with the district, may  | 
| 
 
			 | 
grant money to the district to be used for a permissible purpose of  | 
| 
 
			 | 
a corporation under Section 380.002(b), Local Government Code,  | 
| 
 
			 | 
including the right to pledge the money as security for a bond  | 
| 
 
			 | 
issued by the district. | 
| 
 
			 | 
[Sections 8359.008-8359.050 reserved for expansion] | 
| 
 
			 | 
SUBCHAPTER B.  BOARD OF DIRECTORS | 
| 
 
			 | 
       Sec. 8359.051.  GOVERNING BODY; TERMS.  (a)  The district is  | 
| 
 
			 | 
governed by a board of five elected directors. | 
| 
 
			 | 
       (b)  Except as provided by Section 8359.052, directors serve  | 
| 
 
			 | 
staggered four-year terms. | 
| 
 
			 | 
       Sec. 8359.052.  TEMPORARY DIRECTORS.  (a)  The temporary  | 
| 
 
			 | 
board consists of: | 
| 
 
			 | 
             (1)  Ben Munson; | 
| 
 
			 | 
             (2)  Gifford Jackson; | 
| 
 
			 | 
             (3)  Robert Vaughn; | 
| 
 
			 | 
             (4)  Denice Lucas; and | 
| 
 
			 | 
             (5)  Patrick O'Toole. | 
| 
 
			 | 
       (b)  Temporary directors serve until the earlier of: | 
| 
 
			 | 
             (1)  the date permanent directors are elected under  | 
| 
 
			 | 
Section 8359.003; or | 
| 
 
			 | 
             (2)  September 1, 2013. | 
| 
 
			 | 
       (c)  If permanent directors have not been elected under  | 
| 
 
			 | 
Section 8359.003 and the terms of the temporary directors have  | 
| 
 
			 | 
expired, successor temporary directors shall be appointed or  | 
| 
 
			 | 
reappointed as provided by Subsection (d) to serve terms that  | 
| 
 
			 | 
expire on the earlier of: | 
| 
 
			 | 
             (1)  the date permanent directors are elected under  | 
| 
 
			 | 
Section 8359.003; or | 
| 
 
			 | 
             (2)  the fourth anniversary of the date of the  | 
| 
 
			 | 
appointment or reappointment. | 
| 
 
			 | 
       (d)  If Subsection (c) applies, the owner or owners of a  | 
| 
 
			 | 
majority of the assessed value of the real property in the district  | 
| 
 
			 | 
may submit a petition to the Texas Commission on Environmental  | 
| 
 
			 | 
Quality requesting that the commission appoint as successor  | 
| 
 
			 | 
temporary directors the five persons named in the petition.  The  | 
| 
 
			 | 
commission shall appoint as successor temporary directors the five  | 
| 
 
			 | 
persons named in the petition. | 
| 
 
			 | 
[Sections 8359.053-8359.100 reserved for expansion] | 
| 
 
			 | 
SUBCHAPTER C.  POWERS AND DUTIES | 
| 
 
			 | 
       Sec. 8359.101.  GENERAL POWERS AND DUTIES.  The district has  | 
| 
 
			 | 
the powers and duties necessary to accomplish the purposes for  | 
| 
 
			 | 
which the district is created. | 
| 
 
			 | 
       Sec. 8359.102.  MUNICIPAL UTILITY DISTRICT POWERS AND  | 
| 
 
			 | 
DUTIES.  The district has the powers and duties provided by the  | 
| 
 
			 | 
general law of this state, including Chapters 49 and 54, Water Code,  | 
| 
 
			 | 
applicable to municipal utility districts created under Section 59,  | 
| 
 
			 | 
Article XVI, Texas Constitution. | 
| 
 
			 | 
       Sec. 8359.103.  AUTHORITY FOR ROAD PROJECTS.  Under Section  | 
| 
 
			 | 
52, Article III, Texas Constitution, the district may design,  | 
| 
 
			 | 
acquire, construct, finance, issue bonds for, improve, operate,  | 
| 
 
			 | 
maintain, and convey to this state, a county, or a municipality for  | 
| 
 
			 | 
operation and maintenance macadamized, graveled, or paved roads, or  | 
| 
 
			 | 
improvements, including storm drainage, in aid of those roads. | 
| 
 
			 | 
       Sec. 8359.104.  ROAD STANDARDS AND REQUIREMENTS.  (a)  A road  | 
| 
 
			 | 
project must meet all applicable construction standards, zoning and  | 
| 
 
			 | 
subdivision requirements, and regulations of each municipality in  | 
| 
 
			 | 
whose corporate limits or extraterritorial jurisdiction the road  | 
| 
 
			 | 
project is located. | 
| 
 
			 | 
       (b)  If a road project is not located in the corporate limits  | 
| 
 
			 | 
or extraterritorial jurisdiction of a municipality, the road  | 
| 
 
			 | 
project must meet all applicable construction standards,  | 
| 
 
			 | 
subdivision requirements, and regulations of each county in which  | 
| 
 
			 | 
the road project is located. | 
| 
 
			 | 
       (c)  If the state will maintain and operate the road, the  | 
| 
 
			 | 
Texas Transportation Commission must approve the plans and  | 
| 
 
			 | 
specifications of the road project. | 
| 
 
			 | 
       Sec. 8359.105.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE  | 
| 
 
			 | 
OR RESOLUTION.  (a)  The district shall comply with all applicable  | 
| 
 
			 | 
requirements of an ordinance or resolution adopted by the City of  | 
| 
 
			 | 
Denison in accordance with Section 54.016 or 54.0165, Water Code,  | 
| 
 
			 | 
that consents to the creation of the district or to the inclusion of  | 
| 
 
			 | 
land in the district.  The ordinance or resolution of the City of  | 
| 
 
			 | 
Denison consenting to the creation of the district may limit the  | 
| 
 
			 | 
amount of the district's bonds and tax rate. | 
| 
 
			 | 
       (b)  The ordinance or resolution of the City of Denison  | 
| 
 
			 | 
consenting to the inclusion of additional land in the district may  | 
| 
 
			 | 
be conditioned on the additional land being covered by the  | 
| 
 
			 | 
development agreement executed under Section 8359.004. | 
| 
 
			 | 
       (c)  The consent ordinance or resolution of the City of  | 
| 
 
			 | 
Denison may not impose a restriction or condition not expressly  | 
| 
 
			 | 
provided under Section 54.016(f), Water Code, on a new district  | 
| 
 
			 | 
created under Section 8359.108 or on the inclusion of land in the  | 
| 
 
			 | 
new district.  A restriction or condition on the creation of a new  | 
| 
 
			 | 
district under Section 8359.108 or the inclusion of land in a new  | 
| 
 
			 | 
district may not: | 
| 
 
			 | 
             (1)  limit the amount of the new district's bonds or tax  | 
| 
 
			 | 
rate; or | 
| 
 
			 | 
             (2)  restrict the purposes authorized by this chapter  | 
| 
 
			 | 
for which the new district may issue bonds. | 
| 
 
			 | 
       Sec. 8359.106.  ANNEXATION.  (a)  Before the district holds  | 
| 
 
			 | 
an election under Section 8359.003, the district may annex: | 
| 
 
			 | 
             (1)  without the consent of the City of Denison, land  | 
| 
 
			 | 
previously owned by the United States Army Corps of Engineers; or | 
| 
 
			 | 
             (2)  in accordance with Section 54.016, Water Code,  | 
| 
 
			 | 
land located in the extraterritorial jurisdiction or corporate  | 
| 
 
			 | 
limits of the City of Denison if the City of Denison has consented  | 
| 
 
			 | 
by ordinance or resolution to the annexation. | 
| 
 
			 | 
       (b)  The district may not annex land located outside the  | 
| 
 
			 | 
corporate limits and extraterritorial jurisdiction of the City of  | 
| 
 
			 | 
Denison. | 
| 
 
			 | 
       Sec. 8359.107.  EFFECT OF ANNEXATION BY CITY OF DENISON.  (a)  | 
| 
 
			 | 
The City of Denison may annex part of the district into its  | 
| 
 
			 | 
corporate limits without annexing the entire district under the  | 
| 
 
			 | 
terms of a development agreement executed under Section 8359.004  | 
| 
 
			 | 
between the City of Denison and the owners of the land in the  | 
| 
 
			 | 
district that is covered by the development agreement.  If a  | 
| 
 
			 | 
development agreement is not executed under Section 8359.004 or the  | 
| 
 
			 | 
agreement has expired, nothing in this chapter limits the right of  | 
| 
 
			 | 
the City of Denison to annex the district. | 
| 
 
			 | 
       (b)  If the City of Denison annexes all or part of the  | 
| 
 
			 | 
district into its corporate limits: | 
| 
 
			 | 
             (1)  the district is not dissolved; | 
| 
 
			 | 
             (2)  the ability of the district to issue bonds is not  | 
| 
 
			 | 
impaired or precluded; and | 
| 
 
			 | 
             (3)  unless otherwise approved by the board and the  | 
| 
 
			 | 
governing body of the City of Denison, the city: | 
| 
 
			 | 
                   (A)  may not take over the property or other  | 
| 
 
			 | 
assets of the district; | 
| 
 
			 | 
                   (B)  may not assume any debts, liabilities, or  | 
| 
 
			 | 
other obligations of the district; | 
| 
 
			 | 
                   (C)  is not obligated to perform any functions of  | 
| 
 
			 | 
the district; and | 
| 
 
			 | 
                   (D)  is not obligated to pay a landowner or  | 
| 
 
			 | 
developer for expenses incurred by the landowner or developer in  | 
| 
 
			 | 
connection with the district that would otherwise be eligible for  | 
| 
 
			 | 
reimbursement from the proceeds of bonds issued by the district. | 
| 
 
			 | 
       (c)  Notwithstanding Section 54.016(f)(2), Water Code, an  | 
| 
 
			 | 
allocation agreement between the City of Denison and the district  | 
| 
 
			 | 
that provides for the allocation of the taxes or revenues of the  | 
| 
 
			 | 
district and the city following the date of inclusion of all the  | 
| 
 
			 | 
district's territory in the corporate limits of the city may  | 
| 
 
			 | 
provide that the total annual ad valorem taxes collected by the city  | 
| 
 
			 | 
and the district from taxable property in the district may exceed  | 
| 
 
			 | 
the city's ad valorem tax on that property. | 
| 
 
			 | 
       Sec. 8359.108.  DIVISION OF DISTRICT. (a) The district may  | 
| 
 
			 | 
be divided into two or more new districts only if the district: | 
| 
 
			 | 
             (1)  has no outstanding bonded debt; and | 
| 
 
			 | 
             (2)  is not imposing ad valorem taxes. | 
| 
 
			 | 
       (b)  This chapter applies to any new district created by the  | 
| 
 
			 | 
division of the district, and a new district has all the powers and  | 
| 
 
			 | 
duties of the district. | 
| 
 
			 | 
       (c)  Any new district created by the division of the district  | 
| 
 
			 | 
may, at the time the new district is created, contain only: | 
| 
 
			 | 
             (1)  land within the area described by Section 2 of the  | 
| 
 
			 | 
Act creating this chapter; | 
| 
 
			 | 
             (2)  any land previously owned by the United States  | 
| 
 
			 | 
Army Corps of Engineers; and | 
| 
 
			 | 
             (3)  any land adjacent to the area described by Section  | 
| 
 
			 | 
2 of the Act creating this chapter if that adjacent land is within  | 
| 
 
			 | 
the extraterritorial jurisdiction of the City of Denison and if  | 
| 
 
			 | 
that adjacent land has been approved for inclusion in the district  | 
| 
 
			 | 
under the consent ordinance or resolution adopted by the City of  | 
| 
 
			 | 
Denison under Section 8359.105. | 
| 
 
			 | 
       (d)  The board, on its own motion or on receipt of a petition  | 
| 
 
			 | 
signed by the owner or owners of a majority of the assessed value of  | 
| 
 
			 | 
the real property in the district, may adopt an order dividing the  | 
| 
 
			 | 
district. | 
| 
 
			 | 
       (e)  The board may adopt an order dividing the district only  | 
| 
 
			 | 
after the date the board holds an election under Section 8359.003 to  | 
| 
 
			 | 
confirm the district's creation. | 
| 
 
			 | 
       (f)  An order dividing the district must: | 
| 
 
			 | 
             (1)  name each new district; | 
| 
 
			 | 
             (2)  include the metes and bounds description of the  | 
| 
 
			 | 
territory of each new district; | 
| 
 
			 | 
             (3)  appoint temporary directors for each new district;  | 
| 
 
			 | 
and | 
| 
 
			 | 
             (4)  provide for the division of assets and liabilities  | 
| 
 
			 | 
between or among the new districts. | 
| 
 
			 | 
       (g)  On or before the 30th day after the date of adoption of  | 
| 
 
			 | 
an order dividing the district, the district shall file the order  | 
| 
 
			 | 
with the Texas Commission on Environmental Quality and record the  | 
| 
 
			 | 
order in the real property records of each county in which the  | 
| 
 
			 | 
district is located. | 
| 
 
			 | 
       (h)  Any new district created by the division of the district  | 
| 
 
			 | 
shall hold a confirmation and directors' election as required by  | 
| 
 
			 | 
Section 8359.003. | 
| 
 
			 | 
       (i)  Municipal consent by the City of Denison is not required  | 
| 
 
			 | 
for the creation of any new district created under this section. | 
| 
 
			 | 
       (j)  Any new district created by the division of the district  | 
| 
 
			 | 
must hold an election as required by this chapter to obtain voter  | 
| 
 
			 | 
approval before the district may impose a maintenance tax or issue  | 
| 
 
			 | 
bonds payable wholly or partly from ad valorem taxes. | 
| 
 
			 | 
       (k)  If the voters of a new district do not confirm the  | 
| 
 
			 | 
creation of the new district, the assets, obligations, territory,  | 
| 
 
			 | 
and governance of the new district revert to that of the original  | 
| 
 
			 | 
district. | 
| 
 
			 | 
       Sec. 8359.109.  DISSOLUTION OF DISTRICT.  The district may  | 
| 
 
			 | 
be dissolved by ordinance or resolution of the governing body of the  | 
| 
 
			 | 
City of Denison  after the date on which at least 95 percent of the  | 
| 
 
			 | 
infrastructure authorized by this chapter and the Water Code to  | 
| 
 
			 | 
serve full development in the district has been completed.  On  | 
| 
 
			 | 
dissolution, the City of Denison shall: | 
| 
 
			 | 
             (1)  take over the property and other assets of the  | 
| 
 
			 | 
district; | 
| 
 
			 | 
             (2)  assume all debts, liabilities, or other  | 
| 
 
			 | 
obligations of the district; | 
| 
 
			 | 
             (3)  perform the functions of the district; and  | 
| 
 
			 | 
             (4)  pay any landowner or developer for costs and  | 
| 
 
			 | 
expenses incurred by the landowner or developer in connection with  | 
| 
 
			 | 
the district that would otherwise be eligible for reimbursement  | 
| 
 
			 | 
from the proceeds of bonds issued by the district. | 
| 
 
			 | 
       Sec. 8359.110.  LIMITATION ON USE OF EMINENT DOMAIN.  The  | 
| 
 
			 | 
district may not exercise the power of eminent domain outside the  | 
| 
 
			 | 
district to acquire a site or easement for: | 
| 
 
			 | 
             (1)  a road project authorized by Section 8359.103; or | 
| 
 
			 | 
             (2)  a recreational facility as defined by Section  | 
| 
 
			 | 
49.462, Water Code. | 
| 
 
			 | 
[Sections 8359.111-8359.150 reserved for expansion] | 
| 
 
			 | 
SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS | 
| 
 
			 | 
       Sec. 8359.151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The  | 
| 
 
			 | 
district may issue, without an election, bonds and other  | 
| 
 
			 | 
obligations secured by: | 
| 
 
			 | 
             (1)  revenue other than ad valorem taxes;  or | 
| 
 
			 | 
             (2)  contract payments described by Section 8359.153. | 
| 
 
			 | 
       (b)  The district must hold an election in the manner  | 
| 
 
			 | 
provided by Chapters 49 and 54, Water Code, to obtain voter approval  | 
| 
 
			 | 
before the district may impose an ad valorem tax or issue bonds  | 
| 
 
			 | 
payable from ad valorem taxes. | 
| 
 
			 | 
       (c)  The district may not issue bonds payable from ad valorem  | 
| 
 
			 | 
taxes to finance a road project unless the issuance is approved by a  | 
| 
 
			 | 
vote of a two-thirds majority of the district voters voting at an  | 
| 
 
			 | 
election held for that purpose. | 
| 
 
			 | 
       Sec. 8359.152.  OPERATION AND MAINTENANCE TAX.  (a)  If  | 
| 
 
			 | 
authorized at an election held under Section 8359.151, the district  | 
| 
 
			 | 
may impose an operation and maintenance tax on taxable property in  | 
| 
 
			 | 
the district in accordance with Section 49.107, Water Code. | 
| 
 
			 | 
       (b)  The board shall determine the tax rate.  The rate may not  | 
| 
 
			 | 
exceed the rate approved at the election. | 
| 
 
			 | 
       Sec. 8359.153.  CONTRACT TAXES.  (a)  In accordance with  | 
| 
 
			 | 
Section 49.108, Water Code, the district may impose a tax other than  | 
| 
 
			 | 
an operation and maintenance tax and use the revenue derived from  | 
| 
 
			 | 
the tax to make payments under a contract after the provisions of  | 
| 
 
			 | 
the contract have been approved by a majority of the district voters  | 
| 
 
			 | 
voting at an election held for that purpose. | 
| 
 
			 | 
       (b)  A contract approved by the district voters may contain a  | 
| 
 
			 | 
provision stating that the contract may be modified or amended by  | 
| 
 
			 | 
the board without further voter approval. | 
| 
 
			 | 
[Sections 8359.154-8359.200 reserved for expansion] | 
| 
 
			 | 
SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS | 
| 
 
			 | 
       Sec. 8359.201.  AUTHORITY TO ISSUE BONDS AND OTHER  | 
| 
 
			 | 
OBLIGATIONS.  The district may issue bonds or other obligations  | 
| 
 
			 | 
payable wholly or partly from ad valorem taxes, impact fees,  | 
| 
 
			 | 
revenue, contract payments, grants, or other district money,  | 
| 
 
			 | 
revenue from a tax increment reinvestment zone created under  | 
| 
 
			 | 
Chapter 311, Tax Code, revenue from economic development agreements  | 
| 
 
			 | 
under Chapter 380, Local Government Code, or any combination of  | 
| 
 
			 | 
those sources, to pay for any authorized district purpose. | 
| 
 
			 | 
       Sec. 8359.202.  TAXES FOR BONDS.  At the time the district  | 
| 
 
			 | 
issues bonds payable wholly or partly from ad valorem taxes, the  | 
| 
 
			 | 
board shall provide for the annual imposition of a continuing  | 
| 
 
			 | 
direct ad valorem tax, without limit as to rate or amount, while all  | 
| 
 
			 | 
or part of the bonds are outstanding as required and in the manner  | 
| 
 
			 | 
provided by Sections 54.601 and 54.602, Water Code. | 
| 
 
			 | 
       Sec. 8359.203.  BONDS FOR ROAD PROJECTS.  At the time of  | 
| 
 
			 | 
issuance, the total principal amount of bonds or other obligations  | 
| 
 
			 | 
issued or incurred to finance road projects and payable from ad  | 
| 
 
			 | 
valorem taxes may not exceed one-fourth of the assessed value of the  | 
| 
 
			 | 
real property in the district. | 
| 
 
			 | 
       SECTION 2.  The Lake Texoma Municipal Utility District No. 1  | 
| 
 
			 | 
initially includes all the territory contained in the following  | 
| 
 
			 | 
area: | 
| 
 
			 | 
       Situated in the County of Grayson, State of Texas, being a  | 
| 
 
			 | 
part of the Stephen Cox Survey, Abstract No. 299, the H. K. Needham  | 
| 
 
			 | 
Survey, Abstract No. 1520, the Sarah Hall Survey, Abstract No.  | 
| 
 
			 | 
1485, the Levi T. Loveall Survey, Abstract No. 746, the Bledsoe  | 
| 
 
			 | 
Holder Survey, Abstract No. 614, the William J. Reeves Survey,  | 
| 
 
			 | 
Abstract No. 1018, the Thomas M. Reeves Survey, Abstract No. 1017,  | 
| 
 
			 | 
the William Bean Survey, Abstract No. 84, the Greenberry Gates  | 
| 
 
			 | 
Survey, Abstract No. 443, the Jacob Wilcox Survey, Abstract No.  | 
| 
 
			 | 
1358, the Polly Stamps Survey, Abstract No. 1098, the Joshua West  | 
| 
 
			 | 
Survey, Abstract No. 1316, and being all of the J. C. Jamison  | 
| 
 
			 | 
Survey, Abstract No. 665, the T. E. Jones Survey, Abstract No. 55,  | 
| 
 
			 | 
the R. J. Lefever Survey, Abstract No. 753, the Mary E. Bowe Survey,  | 
| 
 
			 | 
Abstract No. 181, the Charles F. Daugherty Survey, Abstract No.  | 
| 
 
			 | 
1566, the H. B. Thomas Survey, Abstract No. 1572, and the Juan  | 
| 
 
			 | 
Armendaris Survey, Abstract No. 40, and being various tracts of  | 
| 
 
			 | 
land conveyed in various interests to Preston Harbour, L.P., Jack  | 
| 
 
			 | 
Schuler, Farmington Estates, Ltd., Forest Grove Land Company,  | 
| 
 
			 | 
L.L.C., and Preston Harbour Homeplace by descriptions in deed  | 
| 
 
			 | 
recorded in Volume 3449, Page 257, Volume 3599, Page 455, Volume  | 
| 
 
			 | 
4323, Page 875, Volume 4323, Page 881, Volume 3295, Page 526, Volume  | 
| 
 
			 | 
3276, Page 526, Volume 3944, Pages 609 and 615, Volume 3276, Page  | 
| 
 
			 | 
398, Volume 4323, Page 888, Volume 3718, Page 878, Volume 4323, Page  | 
| 
 
			 | 
895, and Volume 3941, Page 871, all of the Official Public Records,  | 
| 
 
			 | 
Grayson County, Texas, and being described as follows: | 
| 
 
			 | 
       Beginning at a point for the most Southerly Southeast corner  | 
| 
 
			 | 
of the herein described tract the intersection of the East line of  | 
| 
 
			 | 
the said Cox Survey with the North right-of-way line of F.M. Highway  | 
| 
 
			 | 
No. 406; | 
| 
 
			 | 
       Thence Westerly with said North right-of-way line as follows: | 
| 
 
			 | 
       North 44°00'30" West, a distance of 76.92 feet; | 
| 
 
			 | 
       Northwesterly with a curve to the left having a radius of  | 
| 
 
			 | 
1,517.39 feet (chord bears North 57°12'58" West, 449.54 feet) an arc  | 
| 
 
			 | 
distance of 451.20 feet; | 
| 
 
			 | 
       North 01°57'58" East, a distance of 20.01 feet; | 
| 
 
			 | 
       North 87°10'26" West, a distance of 53.63 feet; | 
| 
 
			 | 
       Westerly with a non-tangent curve to the left having a radius  | 
| 
 
			 | 
of 1,517.39 feet (chord bears North 77°32'28" West, 507.89 feet) an  | 
| 
 
			 | 
arc distance of 510.29 feet; | 
| 
 
			 | 
       North 87°34'14" West, a distance of 724.69 feet; | 
| 
 
			 | 
       North 87°42'32" West, a distance of 215.02 feet; | 
| 
 
			 | 
       North 88°14'34" West, a distance of 199.86 feet; | 
| 
 
			 | 
       North 75°33'45" West, a distance of 205.00 feet; | 
| 
 
			 | 
       North 88°14'34" West, a distance of 200.00 feet; | 
| 
 
			 | 
       South 84°37'56" West, a distance of 201.56 feet; | 
| 
 
			 | 
       North 88°14'34" West, a distance of 338.31 feet; | 
| 
 
			 | 
       North 87°02'49" West, a distance of 314.69 feet; | 
| 
 
			 | 
       North 77°52'42" West, a distance of 41.24 feet to the  | 
| 
 
			 | 
intersection of said North right-of-way line with the East line of  | 
| 
 
			 | 
the USA property embracing City of Denison; | 
| 
 
			 | 
       Thence with the USA boundary as follows: | 
| 
 
			 | 
       North 00°04'03" East, a distance of 1,381.78 feet; | 
| 
 
			 | 
       North 89°53'11" West, a distance of 650.19 feet; | 
| 
 
			 | 
       North 00°07'13" East, a distance of 1,949.53 feet; | 
| 
 
			 | 
       South 89°51'06" East, a distance of 840.00 feet; | 
| 
 
			 | 
       North 00°03'31" East, a distance of 850.00 feet; | 
| 
 
			 | 
       North 89°57'20" West, a distance of 500.00 feet; | 
| 
 
			 | 
       North 00°00'29" East, a distance of 1,057.78 feet; | 
| 
 
			 | 
       North 00°00'44" West, a distance of 1,530.00 feet; | 
| 
 
			 | 
       North 89°59'16" East, a distance of 800.00 feet; | 
| 
 
			 | 
       North 00°00'44" West, a distance of 1,099.40 feet; | 
| 
 
			 | 
       South 87°26'08" East, a distance of 4,441.44 feet; | 
| 
 
			 | 
       North 01°25'48" East, a distance of 1,465.32 feet; | 
| 
 
			 | 
       North 87°08'00" West, a distance of 2,370.30 feet; | 
| 
 
			 | 
       North 10°19'33" East, a distance of 1,184.67 feet; | 
| 
 
			 | 
       North 86°06'49" West, a distance of 1,106.58 feet; | 
| 
 
			 | 
       North 02°02'54" East, a distance of 969.85 feet; | 
| 
 
			 | 
       North 86°15'15" West, a distance of 425.41 feet; | 
| 
 
			 | 
       North 03°32'53" East, a distance of 1,251.67 feet; | 
| 
 
			 | 
       North 88°27'30" East, a distance of 2,465.83 feet | 
| 
 
			 | 
       North 01°45'27" East, a distance of 1,293.09 feet; | 
| 
 
			 | 
       South 87°21'00" East, a distance of 125.56 feet; | 
| 
 
			 | 
       North 00°00'56" East, a distance of 788.69 feet; | 
| 
 
			 | 
       North 89°58'45" West, a distance of 1,280.23 feet; | 
| 
 
			 | 
       North 00°01'20" East, a distance of 1,029.44 feet; | 
| 
 
			 | 
       South 89°56'44" West, a distance of 537.47 feet; | 
| 
 
			 | 
       North 07°13'40" East, a distance of 355.69 feet; | 
| 
 
			 | 
       North 89°52'44" West, a distance of 463.09 feet; | 
| 
 
			 | 
       North 00°07'06" East, a distance of 850.09 feet; | 
| 
 
			 | 
       South 89°54'25" East, a distance of 821.95 feet; | 
| 
 
			 | 
       North 00°03'52" West, a distance of 872.97 feet; | 
| 
 
			 | 
       North 89°59'31" East, a distance of 750.35 feet; | 
| 
 
			 | 
       South 00°14'40" East, a distance of 1,000.21 feet; | 
| 
 
			 | 
       North 89°55'46" East, a distance of 980.28 feet; | 
| 
 
			 | 
       North 00°12'25" West, a distance of 1,450.28 feet; | 
| 
 
			 | 
       South 89°50'21" East, a distance of 515.07 feet; | 
| 
 
			 | 
       North 00°04'55" East, a distance of 449.79 feet; | 
| 
 
			 | 
       North 89°56'16" East, a distance of 694.55 feet; | 
| 
 
			 | 
       South 03°06'32" West, a distance of 3,023.73 feet; | 
| 
 
			 | 
       South 87°37'57" East, a distance of 1,030.28 feet; | 
| 
 
			 | 
       South 03°04'54" West, a distance of 920.08 feet; | 
| 
 
			 | 
       South 87°38'30" East, a distance of 86.17 feet; | 
| 
 
			 | 
       South 02°59'45" West, a distance of 411.56 feet; | 
| 
 
			 | 
       Thence South 87°01'15" East, passing a USA property corner,  | 
| 
 
			 | 
departing said USA boundary and continuing for a total distance of  | 
| 
 
			 | 
512.48 feet; | 
| 
 
			 | 
       Thence South 01°34'09" West, a distance of 49.43 feet; | 
| 
 
			 | 
       Thence South 10°45'31" East, a distance of 64.75 feet; | 
| 
 
			 | 
       Thence North 46°17'19" East, a distance of 86.01 feet; | 
| 
 
			 | 
       Thence North 43°42'41" West, a distance of 23.21 feet; | 
| 
 
			 | 
       Thence North 01°31'40" East, a distance of 33.82 feet; | 
| 
 
			 | 
       Thence South 87°01'15" East, a distance of 939.51 feet to a  | 
| 
 
			 | 
corner in the West right-of-way line of State Highway No. 84; | 
| 
 
			 | 
       Thence in Southerly direction with said West right-of-way  | 
| 
 
			 | 
line and a non-tangent curve to the right having a radius of  | 
| 
 
			 | 
5,679.58 feet (chord bears South 01°50'38" East, 179.72 feet) an arc  | 
| 
 
			 | 
distance of 179.73 feet; | 
| 
 
			 | 
       Thence South 00°56'14" East, a distance of 2,744.58 feet to  | 
| 
 
			 | 
the intersection of said West right-of-way line with the North line  | 
| 
 
			 | 
of a 30 foot wide strip of land; | 
| 
 
			 | 
       Thence with the boundary of said strip of land as follows: | 
| 
 
			 | 
       South 78°43'18" West, a distance of 476.49 feet; | 
| 
 
			 | 
       North 08°55'55" West, a distance of 184.27 feet; | 
| 
 
			 | 
       North 87°59'26" West, a distance of 768.80 feet; | 
| 
 
			 | 
       South 02°52'06" West, a distance of 30.00 feet; | 
| 
 
			 | 
       South 87°59'26" East, a distance of 744.49 feet; | 
| 
 
			 | 
       South 08°55'55" East, a distance of 190.77 feet; | 
| 
 
			 | 
       North 78°43'18" East, a distance of 502.27 feet to the  | 
| 
 
			 | 
intersection of the South line of said strip of land with the said  | 
| 
 
			 | 
West right-of-way line of Highway No. 84; | 
| 
 
			 | 
       Thence continuing with said West right-of-way line as  | 
| 
 
			 | 
follows: | 
| 
 
			 | 
       South 00°56'14" East, a distance of 429.67 feet; | 
| 
 
			 | 
       Southerly with a curve to the left having a radius of 2,914.79  | 
| 
 
			 | 
feet (chord bears South 08°27'14" East, 762.59 feet), an arc  | 
| 
 
			 | 
distance of 764.79 feet; | 
| 
 
			 | 
       South 15°58'14" East, a distance of 3,853.45 feet; | 
| 
 
			 | 
       Thence departing said West right-of-way line and continuing  | 
| 
 
			 | 
as follows: | 
| 
 
			 | 
       South 01°12'38" West, a distance of 499.66 feet; | 
| 
 
			 | 
       North 87°44'23" West, a distance of 2,445.14 feet; | 
| 
 
			 | 
       South 01°58'12" West, a distance of 1,215.19 feet; | 
| 
 
			 | 
       South 01°35'30" West, a distance of 1,643.46 feet; | 
| 
 
			 | 
       South 01°46'06" West, a distance of 2,228.41 feet; | 
| 
 
			 | 
       North 88°02'55" West, a distance of 3,103.33 feet; | 
| 
 
			 | 
       South 01°42'59" West, a distance of 1,738.89 feet to the Point  | 
| 
 
			 | 
of Beginning and containing approximately 2,272.6 acres of land. | 
| 
 
			 | 
       SECTION 3.  (a)  The legal notice of the intention to  | 
| 
 
			 | 
introduce this Act, setting forth the general substance of this  | 
| 
 
			 | 
Act, has been published as provided by law, and the notice and a  | 
| 
 
			 | 
copy of this Act have been furnished to all persons, agencies,  | 
| 
 
			 | 
officials, or entities to which they are required to be furnished  | 
| 
 
			 | 
under Section 59, Article XVI, Texas Constitution, and Chapter 313,  | 
| 
 
			 | 
Government Code. | 
| 
 
			 | 
       (b)  The governor, one of the required recipients, has  | 
| 
 
			 | 
submitted the notice and Act to the Texas Commission on  | 
| 
 
			 | 
Environmental Quality. | 
| 
 
			 | 
       (c)  The Texas Commission on Environmental Quality has filed  | 
| 
 
			 | 
its recommendations relating to this Act with the governor, the  | 
| 
 
			 | 
lieutenant governor, and the speaker of the house of  | 
| 
 
			 | 
representatives within the required time. | 
| 
 
			 | 
       (d)  All requirements of the constitution and laws of this  | 
| 
 
			 | 
state and the rules and procedures of the legislature with respect  | 
| 
 
			 | 
to the notice, introduction, and passage of this Act are fulfilled  | 
| 
 
			 | 
and accomplished. | 
| 
 
			 | 
       SECTION 4.  This Act takes effect September 1, 2009. | 
|   | 
|   | 
|   | 
______________________________ | 
______________________________ | 
|   | 
   President of the Senate | 
Speaker of the House      | 
|   | 
|   | 
| 
 		
			 | 
       I certify that H.B. No. 4737 was passed by the House on May  | 
| 
 		
			 | 
15, 2009, by the following vote:  Yeas 144, Nays 0, 1 present, not  | 
| 
 		
			 | 
voting. | 
| 
 		
			 | 
 | 
| 
 		
			 | 
______________________________ | 
| 
 		
			 | 
Chief Clerk of the House    | 
|   | 
|   | 
| 
 		
			 | 
       I certify that H.B. No. 4737 was passed by the Senate on May  | 
| 
 		
			 | 
27, 2009, by the following vote:  Yeas 31, Nays 0. | 
| 
 		
			 | 
 | 
| 
 		
			 | 
______________________________ | 
| 
 		
			 | 
Secretary of the Senate     | 
| 
 		
			 | 
APPROVED:  _____________________ | 
| 
 		
			 | 
                   Date           | 
| 
 		
			 | 
  | 
| 
 		
			 | 
          _____________________ | 
| 
 		
			 | 
                 Governor        |