Amend HB 3622 (Senate committee printing) by striking all 
below the enacting clause and substituting the following:
	SECTION 1.  DEFINITIONS.  In this Act:                                         
		(1)  "Board" or "boards" means, as appropriate, the 
board of directors of one or all of the Kingsborough municipal 
utility districts.
		(2)  "Commission" means the Texas Commission on 
Environmental Quality.      
		(3)  "District" or "districts" means, as appropriate, 
one or all of the Kingsborough Municipal Utility District Nos. 1, 2, 
3, 4, and 5 of Kaufman County.
	SECTION 2.  CREATION.  (a)  Five conservation and 
reclamation districts, to be known as the Kingsborough Municipal 
Utility District Nos. 1, 2, 3, 4, and 5 of Kaufman County, are 
created in Kaufman County, subject to approval at a confirmation 
election under Section 13 of this Act.
	(b)  Each district is a governmental agency and a political 
subdivision of this state.
	SECTION 3.  AUTHORITY FOR CREATION.  Each district is 
created under and is essential to accomplish the purposes of 
Section 52, Article III, and Section 59, Article XVI, Texas 
Constitution.
	SECTION 4.  FINDING OF BENEFIT AND PUBLIC PURPOSE.  (a)  Each 
district is created to serve a public use and benefit.
	(b)  All of the land and other property included within the 
boundaries of each district will be benefited by the works and 
projects that are to be accomplished by the district under powers 
conferred by Section 52, Article III, and Section 59, Article XVI, 
Texas Constitution.
	SECTION 5.  BOUNDARIES.  The boundaries of each district are 
as follows:     
	(1)  Kingsborough Municipal Utility District No. 1:                            
	BEING all that certain lot, tract or parcel of land located in 
the J. G. Moore Survey, Abstract No. 309 and the Martha Musick 
Survey, Abstract No. 312, Kaufman County, Texas, and being more 
particularly described by metes and bounds as follows:
	COMMENCING at the intersection of the of the Northeasterly 
right-of-way line of Farm-Market 2757 (a 100 foot wide 
right-of-way), and the Northwesterly line of said J. G. Moore 
Survey and the Southeasterly line of said Martha Musick Survey;
	THENCE North 44 deg. 34 min. 48 sec. East, along the common 
line between said J. G. Moore Survey and the Martha Musick Survey, a 
distance of 1644.55 feet, to the POINT OF BEGINNING of the herein 
described tract of land;
	THENCE North 44 deg. 34 min. 48 sec. East, continuing along 
the common line between said J. G. Moore Survey and the Martha 
Musick Survey, a distance of 2015.87 feet;
	THENCE North 44 deg. 20 min. 17 sec. West, departing said 
common line, a distance of 763.42 feet;
	THENCE North 44 deg. 46 min. 22 sec. East, a distance of 
110.79 feet;        
	THENCE North 45 deg. 13 min. 38 sec. West, a distance of 
1367.42 feet;       
	THENCE North 44 deg. 46 min. 22 sec. East, a distance of 
247.49 feet;        
	THENCE South 68 deg. 13 min. 38 sec. East, a distance of 
627.70 feet;        
	THENCE North 44 deg. 26 min. 44 sec. East, a distance of 
853.26 feet;        
	THENCE North 45 deg. 59 min. 01 sec. West, a distance of 
1118.32 feet;       
	THENCE North 25 deg. 16 min. 32 sec. East, a distance of 
918.27 feet;        
	THENCE North 27 deg. 53 min. 12 sec. East, a distance of 
712.32 feet;        
	THENCE North 44 deg. 02 min. 09 sec. East, a distance of 
693.71 feet, to the Southwesterly right-of-way line of High Country 
Lane (a 60 foot wide right-of-way);
	THENCE South 45 deg. 14 min. 23 sec. East, along the 
Southwesterly right-of-way line of said High Country Lane, a 
distance of 263.11 feet, to the intersection of the Southwesterly 
right-of-way line of said High Country Lane and the Southwesterly 
right-of-way line of Farm-Market 741 (a variable width 
right-of-way), and being the beginning of a non-tangent curve to 
the left having a radius of 999.93 feet;
	THENCE along the Southwesterly right-of-way line of said 
Farm-Market 741 as follows;

Along said non-tangent curve to the left and in a Southeasterly 
direction, through a central angle of 09 deg. 56 min. 12 sec., an 
arc length of 173.42 feet, said non-tangent curve also having a long 
chord which bears South 40 deg. 16 min. 17 sec. East, 173.20 feet;

South 45 deg. 14 min. 23 sec. East, a distance of 1653.79 feet, to 
the beginning of a non-tangent curve to the left having a radius of 
11,472.09 feet;

Along said non-tangent curve to the left and in a Southeasterly 
direction, through a central angle of 03 deg. 05 min. 42 sec., an 
arc length of 619.69 feet, said non-tangent curve to the left having 
a long chord which bears South 46 deg. 47 min. 14 sec. East, 619.62 
feet;

South 45 deg. 21 min. 23 sec. East, a distance of 182.35 feet, to the 
beginning of a non-tangent curve to the left having a radius of 
2993.57 feet;

Along said non-tangent curve to the left and in a Southeasterly 
direction, through a central angle of 04 deg. 13 min. 00 sec., an 
arc length of 220.31 feet, said non-tangent curve to the left also 
having a long chord which bears South 47 deg. 27 min. 53 sec. East, 
220.26 feet;

South 49 deg. 34 min. 23 sec. East, a distance of 222.84 feet, to the 
beginning of a curve to the left having a radius of 1858.59 feet;

Along said curve to the left and in a Southeasterly direction, 
through a central angle of 07 deg. 34 min. 00 sec., an arc length of 
245.45 feet, said curve to the left also having a long chord which 
bears South 53 deg. 21 min. 23 sec. East, 245.27 feet;

South 57 deg. 08 min. 23 sec. East, a distance of 300.24 feet, to the 
beginning of a curve to the left having a radius of 11,472.09 feet;

Along said curve to the left and in a Southwesterly direction, 
through a central angle of 02 deg. 58 min. 15 sec., an arc length of 
594.81 feet, said curve to the left also having a long chord which 
bears South 55 deg. 39 min. 16 sec. East, 594.75 feet;

South 57 deg. 06 min. 23 sec. East, a distance of 327.99 feet, to the 
beginning of a curve to the right having a radius of 5684.58 feet;

Along said curve to the right and in a Southeasterly direction, 
through a central angle of 12 deg. 08 min. 00 sec., an arc length of 
1203.80 feet, said curve also having a long chord which bears South 
51 deg. 02 min. 23 sec. East, 1201.56 feet;

South 44 deg. 58 min. 23 sec. East, a distance of 755.25 feet;                

South 45 deg. 13 min. 23 sec. East, a distance of 238.92 feet, to the 
North corner of the Dallas East Estates which is located to the 
Southwest of said Farm-Market 741;
	THENCE South 44 deg. 19 min. 24 sec. West, departing the 
Southwesterly right-of-way line of said Farm-Market 741 and along 
the Northwesterly boundary line of said Dallas East Addition, a 
distance of 1401.27 feet, to the most Westerly corner of said Dallas 
East Addition;
	THENCE South 44 deg. 45 min. 48 sec. East, along the most 
Southwesterly boundary line of said Dallas East Addition, a 
distance of 1444.80 feet, to the Northwesterly right-of-way line of 
said Farm-Market 741;
	THENCE along the Northwesterly right-of-way line of said 
Farm-Market 741 as follows;
		South 44 deg. 20 min. 25 sec. West, a distance of 545.05 
feet;              
		North 45 deg. 39 min. 35 sec. West, a distance of 10.00 
feet;               
		South 44 deg. 20 min. 25 sec. West, a distance of 700.00 
feet;              
		South 45 deg. 39 min. 35 sec. East, a distance of 10.00 
feet;               
		South 44 deg. 20 min. 25 sec. West, a distance of 933.41 
feet;              
	THENCE North 49 deg. 43 min. 48 sec. East, departing the 
Northwesterly right-of-way line of said Farm-Market 741, a distance 
of 794.74 feet;
	THENCE North 78 deg. 41 min. 33 sec. West, a distance of 
280.00 feet;        
	THENCE North 46 deg. 19 min. 02 sec. West, a distance of 
1073.59 feet;       
	THENCE North 66 deg. 21 min. 14 sec. East, a distance of 
1045.54 feet;       
	THENCE South 81 deg. 36 min. 53 sec. West, a distance of 
327.60 feet;        
	THENCE South 72 deg. 56 min. 15 sec. West, a distance of 
778.38 feet;        
	THENCE South 87 deg. 16 min. 19 sec. West, a distance of 
610.31 feet;        
	THENCE North 77 deg. 32 min. 02 sec. West, a distance of 
731.98 feet;        
	THENCE North 58 deg. 36 min. 37 sec. West, a distance of 
578.95 feet, to the POINT OF BEGINNING and containing 692.696 acres 
(30,173,840 square feet) of land.
	(2)  Kingsborough Municipal Utility District No. 2:                            
	BEING all that certain lot, tract or parcel of land located in 
the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and 
being a portion of that certain tract of land described as Tract K31 
in the deed to West Foundation, according to the deed filed for 
record in Volume 720, Page 860 of the Deed Records of Kaufman 
County, Texas, and being more particularly described by metes and 
bounds as follows:
	BEGINNING at the intersection of the Southwesterly boundary 
line of said Tract K31 and the Southeasterly right-of-way line of 
Farm-Market 741 (a 90 foot wide right-of-way), said iron rod being 
in the center of County Road No. 269;
	THENCE along the Southwesterly right-of-way line of said 
Farm-Market 741 as follows:
	North 43 deg. 59 min. 38 sec. East, along the Southeasterly 
right-of-way line of said Farm-Market 741, a distance of 2525.09 
feet;
	North 44 deg. 20 min. 25 sec. East, a distance of 4582.54 
feet, to the beginning of a curve to the left having a radius of 
761.20 feet;
	Along said curve to the left, through a central angle of 11 
deg. 23 min. 36 sec., an arc length of 151.37 feet and having a long 
chord which bears North 38 deg. 38 min. 37 sec. East, 151.12 feet;
	North 44 deg. 20 min. 25 sec. East, a distance of 463.83 feet, 
to the beginning of a curve to the left having a radius of 127.30 
feet;
	Along said curve to the left, through a central angle of 40 
deg. 09 min. 07 sec., an arc length of 89.21 feet and having a long 
chord which bears North 24 deg. 15 min. 15 min. East, 87.40 feet;
	THENCE North 44 deg. 20 min. 24 sec. East, along the 
Northwesterly line of said Tract K31, a distance of 14.48 feet, to a 
point in County Road No. 260 (an undefined width right of way);
	THENCE South 46 deg. 07 min. 54 sec. East, along said County 
Road No. 260, a distance of 3434.03 feet;
	THENCE South 44 deg. 14 min. 23 sec. West, departing said 
County Road No. 260, a distance of 5193.79 feet, to the beginning of 
a non-tangent curve to the left having a radius of 2640.00 feet;
	THENCE along said non-tangent curve to the left, through a 
central angle of 90 deg. 07 min. 01 sec., an arc length of 4152.29 
feet, and having a long chord which bears South 89 deg. 10 min. 52 
sec. West, 3737.33 feet, to a point in County Road No. 269 (an 
undefined width right-of-way);
	THENCE North 45 deg. 52 min. 38 sec. West, along said County 
Road No. 269, a distance of 747.41 feet to the POINT OF BEGINNING 
and containing 484.081 acres (21,086,547 square feet) of land.
	(3)  Kingsborough Municipal Utility District No. 3:                            
	BEING all that certain lot, tract or parcel of land located in 
the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and 
being more particularly described by metes and bounds as follows:
	BEGINNING at the intersection of the of the Northeasterly 
right-of-way line of Farm-Market 2757 (a 100 foot wide 
right-of-way), and the Northwesterly line of said J. G. Moore 
Survey and the Southeasterly line of said Martha Musick Survey;
	THENCE North 44 deg. 34 min. 48 sec. East, along the common 
line between said J. G. Moore Survey and the Martha Musick Survey, a 
distance of 1644.55 feet;
	THENCE South 58 deg. 36 min. 37 sec. East, departing said 
common line, a distance of 578.95 feet;
	THENCE South 77 deg. 32 min. 02 sec. East, a distance of 
731.98 feet;        
	THENCE North 87 deg. 16 min. 19 sec. East, a distance of 
610.31 feet;        
	THENCE North 72 deg. 56 min. 15 sec. East, a distance of 
778.38 feet;        
	THENCE North 81 deg. 36 min. 53 sec. East, a distance of 
327.60 feet;        
	THENCE South 66 deg. 21 min. 14 sec. East, a distance of 
1045.54 feet;       
	THENCE South 46 deg. 19 min. 02 sec. East, a distance of 
1073.59 feet;       
	THENCE South 78 deg. 41 min. 33 sec. East, a distance of 
280.00 feet;        
	THENCE South 49 deg. 43 min. 48 sec. East, a distance of 
794.74 feet, to a point on the Northwesterly right-of-way line of 
Farm- Market 741 (an 80 foot wide right-of-way);
	THENCE along the Northwesterly right-of-way line of said 
Farm- Market 741 as follows;
	South 44 deg. 20 min. 25 sec. West, a distance of 1657.58 
feet;              
	South 43 deg. 59 min. 38 sec. West, a distance of 2422.82 
feet, to the intersection of the Northwesterly right-of-way line of 
said Farm-Market 741 and the Northeasterly right-of-way line of the 
aforementioned Farm-Market 2757;
	THENCE along the Northeasterly right-of-way line of said 
Farm-Market 2757 as follows;
	South 89 deg. 23 min. 24 sec. West, a distance of 138.28 feet;                 
	North 44 deg. 17 min. 39 sec. West, a distance of 1248.09 
feet;              
	North 45 deg. 23 min. 39 sec. West, a distance of 624.62 feet;                 
	North 45 deg. 36 min. 39 sec. West, a distance of 3302.91 
feet, to the POINT OF BEGINNING and containing 392.241 acres 
(17,086,006 square feet) of land.
	(4)  Kingsborough Municipal Utility District No. 4:                            
	BEING all that certain lot, tract or parcel of land located in 
the Martha Musick Survey, Abstract No. 312 and the J. G. Moore 
Survey, Abstract No. 309, Kaufman County, Texas, and being the 
remainder of those certain tracts of land described as Tracts K14 
through K20, in the deed the West Foundation, as filed for record in 
Volume 720, Page 860 of the Deed Records of Kaufman County, Texas, 
and being more particularly described by metes and bounds as 
follows:
	BEGINNING at the intersection of the Southerly right-of-way 
line of Interstate 20 (a variable width right-of-way) and the 
Southeasterly right-of-way line of Farm-Market 741 (a variable 
width right-of-way at this point);
	THENCE along the Southerly right-of-way line of said 
Interstate 20 as follows;

North 83 deg. 22 min. 27 sec. East, a distance of 751.86 feet; North 
88 deg. 29 min. 25 sec. East, a distance of 474.54 feet; South 84 
deg. 18 min. 42 sec. East, a distance of 952.45 feet; South 78 deg.  
59 min. 16 sec. East, a distance of 4.49 feet to the intersection of 
the Southerly right-of-way line of Interstate 20 and the 
Northeasterly boundary line of the aforementioned Tract K17, said 
point also being the intersection of the said Southerly 
right-of-way line and the Southwesterly boundary line of that 
certain called 113.75 acre tract of land conveyed to Austin W. 
Shipley, according to the deed filed for record in Volume 270, Page 
221, Deed Records, Kaufman County, Texas;
	THENCE South 45 deg. 06 min. 28 sec. East, along the common 
boundary line between said Tract K17 and said called 113.75 acre 
tract, at a distance of approximately 1240 feet passing the most 
Southerly corner of said called 113.75 acre tract and the East 
corner of that certain tract of land conveyed to Gordon T. West, 
according to the deed filed for record in Volume 1636, Page 43, Deed 
Records, Kaufman County, Texas, and continuing along the common 
boundary line between said Tract K17 and said Gordon T. West tract, 
in all a distance of 2131.39 feet to the Northwest boundary line of 
that certain called 300 acre tract of land conveyed to Gordon T. 
West, according to the deed filed for record in Volume 1636, Page 
43, Deed Records, Kaufman County, Texas;
	THENCE South 44 deg. 34 min. 38 sec. West, along the common 
boundary line of said Tract K17 and said called 300 acre tract, and 
generally along a barbed wire fence, a distance of 1891.96 feet, to 
the South corner of said Tract K17 and the West corner of said 
called 300 acre tract, said iron rod also being the North corner of 
the aforementioned Tract K19;
	THENCE South 46 deg. 09 min. 59 sec. East, along the common 
boundary line between said called 300 acre tract and said Tract K19, 
a distance of 3513.32 feet, to the Northwesterly right-of-way line 
of Griffin Lane (a 50 foot wide right-of-way);
	THENCE South 43 deg. 50 min. 01 sec. West, along the 
Northwesterly  right-of-way line of said Griffin Lane, a distance 
of 2649.80 feet, to the Northeasterly right-of-way line of the 
aforementioned Farm-Market 741;
	THENCE along the Northeasterly right-of-way line of said 
Farm-Market 741 as follows;

North 45 deg. 13 min. 23 sec. West, a distance of 4.98 feet;                  

North 44 deg. 58 min. 23 sec. West, at a distance of 632.24 feet 
passing a wood monument found, and continuing in all a distance of 
755.05 feet, said point being the beginning of a curve to the left 
having a radius of 5774.58 feet;

Along said curve to the left, through a central angle of 12 deg. 08 
min. 00 sec., an arc length of 1222.86 feet, and having a long chord 
of North 51 deg. 02 min. 23 sec. West, 1220.58 feet;

North 57 deg. 06 min. 23 sec. West, generally along a barbed wire 
fence, a distance of 328.05 feet, said point being the beginning of 
a curve to the right having a radius of 11,382.09 feet;

Along said curve to the right and along said fence, through a 
central angle of 11 deg. 54 min. 00 sec., an arc length of 2363.99 
feet, and having a long chord which bears North 51 deg. 11 min. 23 
sec. West, 2359.75 feet;

North 45 deg. 14 min. 23 sec. West, generally along said fence, a 
distance of 1653.79 feet, said point being the beginning of a curve 
to the right having  a radius of 909.93 feet;
	THENCE along said curve to the right and along the Easterly 
right-of-way line of said Farm-Market 741 and generally along said 
fence, through a central angle of 90 deg. 33 min. 04 sec., an arc 
length of 1438.07 feet, and having a long chord which bears North 00 
deg. 02 min. 09 sec. East, 1293.01 feet;
	THENCE along the Southeasterly right-of-way line of said 
Farm-Market 741 as follows;

North 45 deg. 18 min. 41 sec. East, a distance of 199.54 feet;                

North 46 deg. 06 min. 41 sec. East, a distance of 1039.75 feet;               

North 46 deg. 21 min. 41 sec. East, a distance of 759.38 feet, said 
point being the beginning of a curve to the left having a radius of 
999.93 feet;

Along said curve to the left, through a central angle of 14 deg. 28 
min. 00 sec., an arc length of 252.47 feet, and having a long chord 
which bears North 39 deg. 07 min. 41 sec. East, 251.80 feet;

North 31 deg. 53 min. 41 sec. East, a distance of 210.50 feet, said 
point being the beginning of a curve to the right having a radius of 
909.38 feet;

Along said curve to the right, through a central angle of 01 deg. 00 
min. 31 sec., an arc length of 16.01 feet, and having a long chord 
which bears North 32 deg. 23 min. 57 sec. East, 16.01 feet to the 
POINT OF BEGINNING and containing 606.441 acres (26,416,564 square 
feet) of land.
	(5)  Kingsborough Municipal Utility District No. 5:                            
	BEING all that certain lot, tract or parcel of land located in 
the J. G. Moore Survey, Abstract No. 309, Kaufman County, Texas, and 
being a portion of that certain tract of land described as Tract K31 
in the deed to West Foundation, according to the deed filed for 
record in Volume 720, Page 860 of the Deed Records of Kaufman 
County, Texas, and being more particularly described by metes and 
bounds as follows:
	BEGINNING at a 5/8 inch iron rod found for the South corner of 
said Tract K31, said iron rod being in County Road No. 269 (an 
undefined width public roadway);
	THENCE North 45 deg. 52 min. 38 sec. West, along the Southwest 
boundary line of said Track K31, and generally along said County 
Road No. 269, a distance of 2640.00 feet, said point being the 
beginning of a non-tangent curve to the right having a radius of 
2640.00 feet;
	THENCE departing the Southwest boundary line of said Tract 
K31, through a central angle of 90 deg. 07 min. 01 sec., an arc 
length of 4152.29 feet, said non-tangent curve also having a long 
chord which bears North 89 deg. 10 min. 52 sec. East, a distance of 
3737.33 feet, to the Southeast boundary line of said Tract K31;
	THENCE South 44 deg. 14 min. 23 sec. West, along the Southeast 
boundary line of said Tract K31, a distance of 2640.00 feet, to the 
POINT OF BEGINNING and containing 125.839 acres (5,481,550 square 
feet) of land.
	SECTION 6.  FINDINGS RELATING TO BOUNDARIES.  The 
legislature finds that the boundaries and field notes of each 
district form a closure.  If a mistake is made in the field notes or 
in copying the field notes in the legislative process, the mistake 
does not affect in any way:
		(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 district or the 
board.                
	SECTION 7.  GENERAL POWERS.  Each district has all of the 
rights, powers, privileges, authority, functions, 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.  This Act 
prevails over any provision of general law that is in conflict or 
inconsistent with this Act.
	SECTION 8.  ADDITIONAL POWERS.  (a)  Each district has the 
additional rights, powers, privileges, authority, and functions 
provided by this section.
	(b)  To the extent authorized by Section 52, Article III, 
Texas Constitution, a district may provide for the construction, 
maintenance, and operation inside or outside the boundaries of the 
district of:
		(1)  paved roads and turnpikes; or                                            
		(2)  works, facilities, or improvements related to the 
roads and turnpikes. 
	SECTION 9.  BONDS.  (a)  Each district may issue bonds as 
provided by Chapters 49 and 54, Water Code, and the general laws of 
this state.
	(b)  A district may issue bonds, notes, or other obligations 
of the district to finance construction, maintenance, and operation 
under Section 8 of this Act and may impose a tax to pay the principal 
of or interest on bonds issued under this subsection.
	(c)  A district may not issue bonds under Subsection (b) of 
this section unless the issuance is approved by a vote of a 
two-thirds majority of the qualified voters of the district voting 
at an election called for that purpose.  Bonds, notes, or other 
obligations issued or incurred under Subsection (b) of this section 
may not exceed one-fourth of the assessed value of the real property 
in the district.
	(d)  Sections 49.181 and 49.182, Water Code, do not apply to 
projects undertaken by a district under Section 8(b) of this Act or 
to bonds issued by a district under Subsection (b) of this section.
	SECTION 10.  EMINENT DOMAIN.  (a)  Within the boundaries of a 
district, a district may exercise the power of eminent domain for 
all public purposes.
	(b)  Outside the boundaries of a district, a district may 
exercise the power of eminent domain only for the purpose of 
constructing, acquiring, operating, repairing, or maintaining 
water supply lines or sanitary sewer lines.
	(c)  A district's power of eminent domain is exercised in the 
same manner as required for a county.
	SECTION 11.  BOARD OF DIRECTORS.  (a)  Each district is 
governed by a board of five directors.
	(b)  Temporary directors serve until initial directors are 
elected under Section 13 of this Act.
	(c)  Initial directors serve until permanent directors are 
elected under Section 14 of this Act.
	(d)  Permanent directors serve staggered four-year terms.                      
	(e)  Each director must qualify to serve as director in the 
manner provided by Section 49.055, Water Code.
	SECTION 12.  APPOINTMENT OF TEMPORARY DIRECTORS.  (a)  On or 
after the effective date of this Act, a person who owns land in a 
district may submit a petition to the commission requesting that 
the commission appoint as temporary directors the five persons 
named in the petition.
	(b)  Subject to Subsection (e) of this section, the 
commission shall appoint as temporary directors the five persons 
named in the first petition received by the commission for each 
district.
	(c)  If a temporary director fails to qualify for office, the 
commission shall appoint a person to fill the vacancy.
	(d)  As soon as practicable after all of the temporary 
directors have qualified, the temporary directors shall meet and 
elect officers from among their membership.
	(e)  The commission may appoint temporary directors for a 
district that is located wholly or partly within an area designated 
by ordinance or resolution of the City of Crandall as the water 
service area, extraterritorial jurisdiction, or corporate limits 
of that city only if the city has given its express written consent 
to the creation of the district.  The City of Crandall may give its 
consent only on the execution of a written agreement between the 
developer of the district and the Crandall Independent School 
District providing that the developer of the district will:
		(1)  fund the construction of buildings and 
improvements for the school district; and
		(2)  establish an educational fund for the school 
district of an amount based on an annually determined transaction 
fee on the sale and resale of any home within the district 
boundaries for the duration of the existence of the district.
	SECTION 13.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.  
(a)  Subject to Subsection (b) of this section, the temporary board 
of directors of each district shall call and hold an election to 
confirm establishment of the district and to elect five initial 
directors in the manner provided by Chapter 49, Water Code.
	(b)  A temporary board of directors may call and hold an 
election to confirm establishment of a district that is located 
wholly or partly within an area designated by ordinance or 
resolution of the City of Crandall as the water service area, 
extraterritorial jurisdiction, or corporate limits of that city 
only if the city has given its express written consent to the 
creation of the district.  The City of Crandall may give its consent 
only on the execution of a written agreement between the developer 
of the district and the Crandall Independent School District 
providing that the developer of the district will:
		(1)  fund the construction of buildings and 
improvements for the school district; and
		(2)  establish an educational fund for the school 
district of an amount based on an annually determined transaction 
fee on the sale and resale of any home within the district 
boundaries for the duration of the existence of the district.
	SECTION 14.  ELECTION OF DIRECTORS.  Each board shall call 
and hold elections to elect permanent directors in the manner 
provided by Chapter 49, Water Code.
	SECTION 15.  EFFECTIVE DATE; EXPIRATION DATE.  (a)  This Act 
takes effect September 1, 2003.
	(b)  If the creation of a district is not confirmed at a 
confirmation election held under Section 13 of this Act before 
September 1, 2005, the provisions of this Act relating to that 
district expire on that date.