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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 Grayson County Municipal Utility |
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District No. 3; granting a limited power of eminent domain; |
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providing authority to issue bonds; providing authority to impose |
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assessments, fees, and taxes. |
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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 8009 to read as follows: |
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CHAPTER 8009. GRAYSON COUNTY MUNICIPAL UTILITY DISTRICT NO. 3 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8009.0101. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "City" means the city of Gunter, Texas. |
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(3) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(4) "Director" means a board member. |
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(5) "District" means the Grayson County Municipal |
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Utility District No. 3. |
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Sec. 8009.0102. NATURE OF DISTRICT. The district is a |
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municipal utility district created under Section 59, Article XVI, |
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Texas Constitution. |
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Sec. 8009.0103. CONFIRMATION AND DIRECTOR ELECTION |
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REQUIRED. The temporary directors shall hold an election to |
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confirm the creation of the district and to elect five permanent |
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directors as provided by Section 49.102, Water Code. |
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Sec. 8009.0104. CONSENT OF MUNICIPALITY REQUIRED. The |
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temporary directors may not hold an election under Section |
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8009.0103 until each municipality in whose corporate limits or |
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extraterritorial jurisdiction the district is located has |
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consented by ordinance or resolution to the creation of the |
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district and to the inclusion of land in the district. |
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Sec. 8009.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. |
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(a) The district is created to serve a public purpose and benefit. |
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(b) The district is created to accomplish the purposes of: |
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(1) a municipal utility district as provided by |
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general law and Section 59, Article XVI, Texas Constitution; and |
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(2) Section 52, Article III, Texas Constitution, that |
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relate to the construction, acquisition, improvement, operation, |
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or maintenance of macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 8009.0106. 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 enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting 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 a tax; or |
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(4) legality or operation. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 8009.0201. GOVERNING BODY; TERMS. (a) The district is |
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governed by a board of five elected directors. |
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(b) Except as provided by Section 8009.0202, directors |
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serve staggered four-year terms. |
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Sec. 8009.0202. TEMPORARY DIRECTORS. (a) On or after |
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September 1, 2019, the owner or owners of a majority of the assessed |
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value of the real property in the district may submit a petition to |
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the commission requesting that the commission appoint as temporary |
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directors the five persons named in the petition. The commission |
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shall appoint as temporary directors the five persons named in the |
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petition. |
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(b) Temporary directors serve until the earlier of: |
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(1) the date permanent directors are elected under |
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Section 8009.0103; or |
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(2) September 1, 2023. |
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(c) If permanent directors have not been elected under |
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Section 8009.0103 and the terms of the temporary directors have |
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expired, successor temporary directors shall be appointed or |
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reappointed as provided by Subsection (d) to serve terms that |
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expire on the earlier of: |
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(1) the date permanent directors are elected under |
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Section 8009.0103; or |
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(2) the fourth anniversary of the date of the |
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appointment or reappointment. |
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(d) If Subsection (c) applies, the owner or owners of a |
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majority of the assessed value of the real property in the district |
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may submit a petition to the commission requesting that the |
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commission appoint as successor temporary directors the five |
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persons named in the petition. The commission shall appoint as |
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successor temporary directors the five persons named in the |
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petition. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 8009.0301. GENERAL POWERS AND DUTIES. The district |
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has the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 8009.0302. 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) 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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(c) 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. 8009.0303. AUTHORITY FOR ROAD PROJECTS. Under Section |
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52, Article III, Texas Constitution, the district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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Sec. 8009.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A |
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road project must meet all applicable construction standards, |
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zoning and subdivision requirements, and regulations of each |
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municipality in whose corporate limits or extraterritorial |
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jurisdiction the road project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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Sec. 8009.0305. MAINTENANCE OF ROADS IN TERRITORY OUTSIDE |
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CORPORATE LIMITS OF CITY. If district territory, or a portion of |
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district territory, is located outside the corporate limits of the |
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city, the district shall maintain any road the district constructs |
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located in that territory. |
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Sec. 8009.0306. COMPLIANCE WITH MUNICIPAL CONSENT |
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ORDINANCE OR RESOLUTION. The district shall comply with all |
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applicable requirements of any ordinance or resolution that is |
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adopted under Section 54.016 or 54.0165, Water Code, and that |
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consents to the creation of the district or to the inclusion of land |
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in the district. |
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Sec. 8009.0307. DIVISION OF DISTRICT. (a) The district may |
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be divided into two or more new districts only if the district: |
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(1) has no outstanding bonded debt; and |
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(2) is not imposing ad valorem taxes. |
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(b) This chapter applies to any new district created by the |
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division of the district, and a new district has all the powers and |
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duties of the district. |
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(c) Any new district created by the division of the district |
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may not, at the time the new district is created, contain any land |
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outside the area described by Section 2 of the Act enacting this |
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chapter. |
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(d) The board, on its own motion or on receipt of a petition |
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signed by the owner or owners of a majority of the assessed value of |
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the real property in the district, may adopt an order dividing the |
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district. |
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(e) The board may adopt an order dividing the district |
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before or after the date the board holds an election under Section |
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8009.0103 to confirm the district's creation. |
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(f) An order dividing the district shall: |
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(1) name each new district; |
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(2) include the metes and bounds description of the |
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territory of each new district; |
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(3) appoint temporary directors for each new district; |
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and |
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(4) provide for the division of assets and liabilities |
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between or among the new districts. |
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(g) On or before the 30th day after the date of adoption of |
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an order dividing the district, the district shall file the order |
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with the commission and record the order in the real property |
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records of each county in which the district is located. |
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(h) Any new district created by the division of the district |
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shall hold a confirmation and directors' election as required by |
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Section 8009.0103. If the voters of a new district do not confirm |
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the creation of the new district, the assets, obligations, |
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territory, and governance of the new district revert to the |
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original district. |
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(i) Municipal consent to the creation of the district and to |
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the inclusion of land in the district granted under Section |
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8009.0104 acts as municipal consent to the creation of any new |
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district created by the division of the district and to the |
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inclusion of land in the new district. |
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(j) Any new district created by the division of the district |
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must hold an election as required by this chapter to obtain voter |
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approval before the district may impose a maintenance tax or issue |
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bonds payable wholly or partly from ad valorem taxes. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 8009.0401. ELECTIONS REGARDING TAXES OR BONDS. (a) |
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The district may issue, without an election, bonds and other |
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obligations secured by: |
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(1) revenue other than ad valorem taxes; or |
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(2) contract payments described by Section 8009.0403. |
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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 ad valorem tax or issue bonds |
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payable from ad valorem taxes. |
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(c) The district may not issue bonds payable from ad valorem |
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taxes to finance a road project unless the issuance is approved by a |
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vote of a two-thirds majority of the district voters voting at an |
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election held for that purpose. |
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Sec. 8009.0402. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized at an election held under Section 8009.0401, the |
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district may impose an operation and maintenance tax on taxable |
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property in the district in accordance with Section 49.107, Water |
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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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Sec. 8009.0403. CONTRACT TAXES. (a) In accordance with |
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Section 49.108, Water Code, the district may impose a tax other than |
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an operation and maintenance tax and use the revenue derived from |
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the tax to make payments under a contract after the provisions of |
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the contract have been approved by a majority of the district voters |
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voting at an election held for that purpose. |
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(b) A contract approved by the district voters may contain a |
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provision stating that the contract may be modified or amended by |
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the board without further voter approval. |
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SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS |
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Sec. 8009.0501. AUTHORITY TO ISSUE BONDS AND OTHER |
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OBLIGATIONS. 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, contract payments, grants, or other district money, or any |
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combination of those sources, to pay for any authorized district |
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purpose. |
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Sec. 8009.0502. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct ad valorem tax, without limit as to rate or amount, while all |
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or part of the bonds are outstanding as required and in the manner |
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provided by Sections 54.601 and 54.602, Water Code. |
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Sec. 8009.0503. BONDS FOR ROAD PROJECTS. At the time of |
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issuance, the total principal amount of bonds or other obligations |
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issued or incurred to finance road projects and payable from ad |
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valorem taxes may not exceed one-fourth of the assessed value of the |
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real property in the district. |
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SECTION 2. The Grayson County Municipal Utility District |
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No. 3 initially includes all the territory contained in the |
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following area: |
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All that certain tract or parcel of land situated in the Sarah Cross |
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Survey, Abstract Number 210, County of Grayson, State of Texas, |
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said tract being all of a called 578.517 acre tract as described in |
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Deed to Evans Family Partnership LTD, filed 23 March 2005, and |
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Recorded in Volume 3835 Page 465 of the Deed Records of the County |
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of Grayson, State of Texas, and being more fully described as |
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follows: |
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Beginning for the southwest corner of the tract being described |
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herein at a Wood Cross-Tie fence corner Post, said post being the |
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southwest corner of said Evans tract, and the southeast corner of a |
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tract as described in Deed to William H. Ledbetter, filed 11 |
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December 1978, and Recorded in Volume 1456 Page 570 of said Deed |
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Records, and on the north Right-of-Way line of Farm-to-Market Road |
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Number 121 as described in deed to The State of Texas, filed 20 |
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January 1951, and Recorded in Volume 638 Page 284 of said Deed |
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Records; |
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Thence: North 02 degrees 27 minutes 06 seconds East, with the west |
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line of said Evans tract, and the east line of said Ledbetter tract, |
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and passing at 1659.63 feet a Wood Cross-Tie fence corner post being |
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the northeast corner of said Ledbetter tract and the southwest |
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corner of a tract as described in deed to Donald Ray Martinek, |
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Trustee, and passing at 3757.23 feet a Wood Cross-Tie fence corner |
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post on the south side of Airport Road, and continuing on said |
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course for a total distance of 3784. 73 feet (3778.50) to a set |
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survey mark Nail in the center line of said Airport Road; |
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Thence: South 87 degrees 34 minutes 18 seconds East, with the north |
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line of said Evans tract, and in Airport Road, a distance of 6705.82 |
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feel (6690.80) to a set survey mark nail for the northeast corner of |
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said Evan tract and at the intersection of said Airport Road and |
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Bodovsky Road, said nail also being on the east line of the Sarah |
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Cross Survey, and the west line of the Stephen Prather Survey, |
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Abstract Number 931; |
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Thence: South 02 degrees 20 minutes 52 seconds West, with the east |
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line of said Evans tract, and in Bodovsky Road, a distance of 799.69 |
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feet to a found PK Nail for the southwest corner of said Prather |
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Survey and the northwest corner of the Benjamin S. Nounnan Survey |
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Abstract Number 903, and at a intersection of said Airport Road and |
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Bodovsky Road; |
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Thence: South 02 degrees 29 minutes 56 seconds West, with the east |
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line of said Evans tract, and in Bodovsky Road, a distance of |
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2981.56 feet to a found 3/4 inch Steel Rod for the southeast corner |
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of said Evan tract and at a turn in Bodovsky Road and on the north |
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line of a tract as described in Deed to GIC Hedges, filed 27 July |
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2006, and Recorded in Volume 4093 Page 207 of said Deed Records; |
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Thence: North 87 degrees 58 minutes 12 seconds West, with the south |
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line of said Evans tract, and in Bodovsky Road, a distance of |
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1160.49 feet to a found survey mark nail for the northwest corner of |
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a said Hedges tract, and the northeast corner of a tract as |
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described in Deed to Clifton G. Goodrum, filed 16 June 2006, and |
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Recorded in Volume 3010 Page 268 of said Deed Records, and at the |
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intersection of Bodovsky Road and Liberty Love Lane; |
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Thence: North 87 degrees 38 minutes 09 seconds, West, with the south |
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line of said Evans tract, and the north line of said Goodrum tract, |
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and in Bodovsky Road, a distance of 638.12 feet to a set survey mark |
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nail for the northwest corner of said Goodrum tract and on the east |
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Right-of-Way line of Farm-to-Market Road Number 121; |
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Thence: With the south line of said Evans tract, and along the north |
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ROW line of said FM 121, the following 8 (eight) calls; |
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1. North 04 degrees 11 minutes 10 seconds East, a distance |
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of 25.00 feet to a found State of Texas Concrete Right-of-Way |
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Monument; |
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2. North 87 degrees 38 minutes 07 seconds West, a distance |
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of 327.28 feet to a found State of Texas Concrete Right-of-Way |
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Monument, and the start of a curve to the left whose radius is |
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1185.94 feet, and a central angle of 09 degrees 08 minutes 00 |
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seconds; |
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3. With said curve an arc length of 189.05 feet to a set 1/2 |
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inch Steel Square Tubing for a corner; |
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4. North 87 degrees 51 minutes 33 seconds West, a distance |
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of 2040.40 feet to a found State of Texas Concrete Right-of-Way |
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Monument; |
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5. North 88 degrees 50 minutes 00 seconds West, a distance |
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of 1045.64 feet to a found State of Texas Concrete Right-of-Way |
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Monument; |
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6. North 85 degrees 03 minutes 00 seconds West, a distance |
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of 151.30 feet for a corner; |
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7. North 88 degrees 44 minutes 29 seconds West, a distance |
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of 447.05 feet to a found State of Texas Concrete Right-of-Way |
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Monument; |
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8. North 87 degrees 22 minutes 12 seconds West, a distance |
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of 707.52 feet to the POINT OF BEGINNING and containing 580.877 |
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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. (a) If this Act does not receive a two-thirds |
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vote of all the members elected to each house, Subchapter C, Chapter |
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8009, Special District Local Laws Code, as added by Section 1 of |
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this Act, is amended by adding Section 8009.0308 to read as follows: |
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Sec. 8009.0308. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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(b) This section is not intended to be an expression of a |
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legislative interpretation of the requirements of Section 17(c), |
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Article I, Texas Constitution. |
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SECTION 5. This Act takes effect September 1, 2019. |