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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the Gunter Municipal Utility District |
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No. 1; providing authority to impose taxes and issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8238 to read as follows: |
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CHAPTER 8238. GUNTER MUNICIPAL UTILITY DISTRICT NO. 1 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8238.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "Director" means a member of the board. |
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(3) "District" means the Gunter Municipal Utility |
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District No. 1. |
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Sec. 8238.002. NATURE OF DISTRICT. The district is a |
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municipal utility district in Grayson County created under and |
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essential to accomplish the purposes of Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 8238.003. CONFIRMATION ELECTION REQUIRED. The board |
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shall hold an election to confirm the creation of the district as |
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provided by Section 49.102, Water Code. |
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Sec. 8238.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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All land and other property included in the district will benefit |
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from the improvements and services to be provided by the district. |
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(b) The district is created to accomplish: |
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(1) the purposes of a municipal utility district as |
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provided by general law; and |
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(2) to the extent authorized by Section 52, Article |
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III, Texas Constitution, the construction, acquisition, |
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improvement, maintenance, or operation of macadamized, graveled, |
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or paved roads or improvements in aid of those roads. |
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Sec. 8238.005. INITIAL DISTRICT TERRITORY. (a) The |
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district is initially composed of the territory described by |
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Section 2 of the Act creating this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act creating this chapter form a closure. A mistake made in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to issue any type of bond for the purposes |
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for which the district is created or to pay the principal of and |
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interest on a bond; |
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(3) right to impose or collect an assessment or tax; or |
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(4) legality or operation. |
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Sec. 8238.006. ANNEXATION BY CITY OF GUNTER. |
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Notwithstanding any other law, if all of the territory of the |
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district is annexed by the City of Gunter into the corporate limits |
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of that municipality before the date of the election under Section |
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8238.003, the district may not be dissolved and shall continue |
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until the district is dissolved under Section 43.074, Local |
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Government Code. |
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[Sections 8238.007-8238.050 reserved for expansion] |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 8238.051. DIRECTORS; TERMS. (a) The district is |
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governed by a board of five directors. |
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(b) Except as provided by Section 8238.053, directors serve |
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staggered four-year terms. |
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Sec. 8238.052. ELECTION OF DIRECTORS. On the uniform |
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election date in May of each even-numbered year, the appropriate |
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number of directors shall be elected. |
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Sec. 8238.053. INITIAL DIRECTORS. (a) The initial board |
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consists of: |
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(1) Erik Nelson; |
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(2) David Kelly; |
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(3) Jeff Sallas; |
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(4) Howell Kemp; and |
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(5) Jill Tate. |
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(b) Unless the initial board otherwise agrees, the initial |
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directors shall draw lots to determine which two directors shall |
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serve until the first regularly scheduled election of directors and |
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which three directors shall serve until the second regularly |
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scheduled election of directors. |
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Sec. 8238.054. CONSENT OF MUNICIPALITY REQUIRED. The |
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initial directors may not hold an election under Section 8238.003 |
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until: |
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(1) all of the territory of the district is included in |
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the corporate limits of the City of Gunter; and |
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(2) the City of Gunter has adopted a resolution |
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consenting to the creation of the district. |
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[Sections 8238.055-8238.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 8238.101. MUNICIPAL UTILITY DISTRICT POWERS AND |
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DUTIES. (a) The district has the powers and duties provided by the |
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general law of this state, including Chapters 49 and 54, Water Code, |
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applicable to municipal utility districts created under Section 59, |
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Article XVI, Texas Constitution. |
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(b) The district has the powers and duties necessary to |
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accomplish the purposes for which the district is created. |
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(c) Notwithstanding Subsection (a), the district may not |
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act as a retail provider of water or wastewater service. |
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(d) The district shall make the district's water and |
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wastewater facilities available to an entity holding the applicable |
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certificate of public convenience and necessity. |
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Sec. 8238.102. ROAD PROJECTS. (a) To the extent authorized |
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by Section 52, Article III, Texas Constitution, the district may |
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construct, acquire, improve, maintain, or operate macadamized, |
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graveled, or paved roads or improvements in aid of those roads. |
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(b) A road project must meet all applicable standards, |
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regulations, and ordinances of the municipality or county in whose |
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jurisdiction the district is located. |
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(c) If a portion of the territory of the district is |
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excluded from the corporate limits of the City of Gunter, the |
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district shall: |
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(1) improve, maintain, repair, and operate the roads |
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located in that portion of territory in accordance with the |
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ordinances and rules of the political subdivision possessing |
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jurisdiction over the roads in that portion of territory; and |
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(2) pay the entire cost of performing the district's |
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duties under Subdivision (1). |
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Sec. 8238.103. COMPLIANCE WITH MUNICIPAL CONSENT |
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ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section |
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54.016, Water Code, the district shall comply with all applicable |
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requirements of any ordinance or resolution adopted by the |
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governing body of the municipality that consents to the creation of |
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the district or to the inclusion of lands within the district. |
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[Sections 8238.104-8238.150 reserved for expansion] |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 8238.151. ELECTIONS REGARDING TAXES OR BONDS. (a) The |
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district may issue, without an election, bonds and other |
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obligations secured by revenue or contract payments from any source |
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other than ad valorem taxation. |
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(b) The district must hold an election in the manner |
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provided by Chapters 49 and 54, Water Code, to obtain voter approval |
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before the district may impose an operation and maintenance tax or |
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issue bonds payable from ad valorem taxes. |
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Sec. 8238.152. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election held under Section 8238.151, the district |
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may impose an operation and maintenance tax on taxable property in |
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the district in accordance with Section 49.107, Water Code. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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[Sections 8238.153-8238.200 reserved for expansion] |
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SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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Sec. 8238.201. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS. (a) The district may issue bonds or other obligations |
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payable wholly or partly from ad valorem taxes, impact fees, |
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revenue, grants, or other district money, or any combination of |
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those sources, to pay for any authorized district purpose. |
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(b) The district may not issue bonds to finance projects |
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authorized by Section 8238.102 unless the issuance is approved by a |
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vote of a two-thirds majority of the voters of the district voting |
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at an election called for that purpose. |
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(c) Bonds or other obligations issued or incurred to finance |
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projects authorized by Section 8238.102 may not exceed one-fourth |
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of the assessed value of the real property in the district. |
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Sec. 8238.202. TAXES FOR BONDS. At the time bonds payable |
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wholly or partly from ad valorem taxes are issued: |
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(1) the board shall impose a continuing direct annual |
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ad valorem tax, without limit as to rate or amount, for each year |
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that all or part of the bonds are outstanding; and |
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(2) the district annually shall impose an ad valorem |
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tax on all taxable property in the district in an amount sufficient |
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to: |
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(A) pay the interest on the bonds as the interest |
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becomes due; |
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(B) create a sinking fund for the payment of the |
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principal of the bonds when due or the redemption price at any |
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earlier required redemption date; and |
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(C) pay the expenses of imposing the taxes. |
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SECTION 2. The Gunter Municipal Utility District No. 1 |
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initially includes all the territory contained in the following |
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area: |
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BEING a tract of land located in the JESSE BARKER SURVEY, |
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ABSTRACT NO. 70, ROBERT MASON SURVEY, ABSTRACT NO. 784 and the |
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THOMAS POLK SURVEY, ABSTRACT NO. 938, Grayson County, Texas and |
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being part of a tract of land described as Tract 2 in Deed to Crooked |
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Cross Partners, LTD., recorded in Volume 3491, Page 263, Deed |
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Records, Grayson County, Texas and being more particularly |
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described as follows: |
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BEGINNING at a 1/2 inch square pipe found at the most |
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Northerly Northwest corner of said Tract 2 and the Northeast corner |
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of a tract of land described in Deed to Marion Lewis Cole and Linda |
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Rudolf Cole, recorded in Volume 2796, Page 848, Deed Records, |
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Grayson County, Texas, said point being the Southeast corner of a |
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tract of land described in Deed to Martinek Grain and Bins, Inc, a |
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Texas Corporation recorded in Volume 2352, Page 18, Deed Records |
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Grayson County, Texas, and the Southwest corner of a tract of land |
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described in Deed to Kenneth B. Jaresh and Gail A. Jaresh, recorded |
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in Volume 2344, Page 66, Deed Records, Grayson County, Texas; |
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THENCE along the North line of said Tract 2 the following |
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three (3) courses and distances: |
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South 88 degrees 57 minutes 20 seconds East, a distance of |
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941.12 feet to a 1/2 inch square pipe found at the Southeast corner |
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of said Jaresh tract and the Southwest corner of a tract of land |
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described in Deed to Beatrice Ann Jaresh, recorded in Volume 1251, |
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Page 169, Deed Records, Grayson County, Texas; |
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South 88 degrees 45 minutes 17 seconds East, a distance of |
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739.56 feet to a 1/2 inch iron rod found at the Southeast corner of |
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said Beatrice Ann Jaresh tract; |
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South 88 degrees 52 minutes 54 seconds East, a distance of |
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1,736.94 feet to a 1/2 inch iron rod with a red plastic camp stamped |
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"3258" found at the Northeast corner of said Tract 2 and the |
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Northwest corner of a tract of land described in Deed to Longhorn |
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Trail Ranch II, LTD., recorded in Volume 3768, Page 454, Deed |
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Records Grayson County, Texas; |
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THENCE South 00 degrees 43 minutes 35 seconds West, leaving |
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said North line, a distance of 2,252.51 feet to a 1/2 inch iron rod |
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found at the Southwest corner of said Longhorn tract; |
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THENCE South 42 degrees 04 minutes 28 seconds West, a |
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distance of 3,007.40 feet to a 1/2 inch iron rod found at the |
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Northeast corner of a tract of land described in Deed to D.B. Tate, |
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Jr. and Betty Jane Tate, recorded in Volume 2460, Page 683, Deed |
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records, Grayson County, Texas; |
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THENCE North 89 degrees 19 minutes 32 seconds West, a |
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distance of 4,477.51 feet to a 1/2 inch iron rod with a yellow |
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plastic cap stamped "DAA" set in the approximate center line of Old |
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Scaggs School Road, at the most Northerly Southwest corner of said |
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Tract 2 from which a 1/2 inch iron rod found bears South 49 degrees |
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24 minutes 30 seconds West, a distance of 9.55 feet; |
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THENCE along the approximate center line of said Old Scaggs |
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School Road the following four (4) courses and distances: |
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North 00 degrees 07 minutes 27 seconds West, a distance of |
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1,448.47 feet to a 1/2 inch iron rod found at the most Southerly |
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Northwest corner of said Tract 2; |
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South 89 degrees 02 minutes 31 seconds East, a distance of |
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3,081.02 feet to a 1/2 inch iron rod found at a Westerly Ell corner |
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of said Tract 2 and the Southeast corner of a tract of land |
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described in Deed to Platinum Ranch Venture, LTD., recorded in |
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Volume 3072, Page 217, Deed Records, Grayson County, Texas; |
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North 00 degrees 20 minutes 32 seconds East, a distance of |
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1,561.57 feet to a 1/2 inch iron rod found at the Northeast corner |
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of said Platinum Ranch Venture tract and the Southeast corner of a |
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said Cole tract; |
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North 00 degrees 38 minutes 33 seconds East, a distance of |
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1,540.67 feet to the POINT OF BEGINNING and containing 404.154 |
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acres of land, more or less. |
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SECTION 3. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, the |
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lieutenant governor, and the speaker of the house of |
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representatives within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act are fulfilled |
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and accomplished. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |