By Lewis of Orange                                    H.B. No. 3549

         75R5398 MI-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, administration, powers, duties,

 1-3     functions, operations, and financing of the South Newton Special

 1-4     Utility District.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  CREATION; LEGISLATIVE DECLARATION.  (a)  A

 1-7     conservation and reclamation district is created in Newton and

 1-8     Orange counties to be known as the South Newton Special Utility

 1-9     District, subject to approval at a confirmation election as

1-10     specified under Section 10 of this Act.  The district is a

1-11     governmental agency and a body politic and corporate.

1-12           (b)  The district is created under and is essential to

1-13     accomplish the purposes of Section 59, Article XVI, Texas

1-14     Constitution.

1-15           SECTION 2.  DEFINITION.  In this Act, "district" means the

1-16     South Newton Special Utility District.

1-17           SECTION 3.  BOUNDARIES.  The district includes all the

1-18     territory contained in the following described area:

1-19     BEGINNING at a point in the west bank of the Sabine River in the

1-20     north line of the Enis Hardin Survey, Abstract 141, Newton County,

1-21     Texas;

1-22     THENCE West along the north line of said Enis Hardin Survey for a

1-23     distance of 15,863 feet to a point in the south line of the H.T. &

1-24     B.R.R., Section 7, Abstract 233, Newton County, for the northwest

 2-1     corner of said Enis Hardin Survey;

 2-2     THENCE South along the west line of said Enis Hardin Survey for a

 2-3     distance of 3987 feet to the southwest corner of said Enis Hardin

 2-4     Survey and the northwest corner of the B.J. Lewis Survey, Abstract

 2-5     930, Newton County;

 2-6     THENCE continuing South along a southward projection of the west

 2-7     line of said Enis Hardin Survey at 1953 feet pass the south line of

 2-8     said B.J. Lewis Survey and the north line of the H.T. & B.R.R.,

 2-9     Section 1, Abstract 234, Newton County, and continuing for a total

2-10     distance of 3413 feet to a point for corner;

2-11     THENCE West for a distance of 711 feet to a point for corner in the

2-12     west line of said H.T. & B.R.R., Section 1;

2-13     THENCE South along the west line of said H.T. & B.R.R., Section 1

2-14     for a distance of 6517 feet to a point for corner in the north line

2-15     of the Jas. A. Mason Survey, Abstract 324, Newton County and being

2-16     the southwest corner of said H.T.  & B.R.R., Section 1;

2-17     THENCE South 80 West along the north line of said Jas. A. Mason

2-18     Survey for a distance of 218 feet to a point for corner in the

2-19     south line of the Charles E. Anderson Survey, Abstract 912, Newton

2-20     County and being the northeast corner of the Charles Champion

2-21     Survey, Abstract 77, Newton County and the northwest corner of said

2-22     Jas. A. Mason Survey;

2-23     THENCE South along the west line of said Jas. A. Mason Survey for a

2-24     distance of 5280 feet to the southwest corner of said survey and

2-25     being the northwest corner of the John Champion Survey, Abstract

2-26     78, Newton County;

2-27     THENCE East along the south line of said Jas. A. Mason Survey and

 3-1     the north line of said John Champion Survey for a distance of 5696

 3-2     feet to a point in the west line of the George Hayden Survey,

 3-3     Abstract 919, Newton County and being the southeast corner of said

 3-4     Jas. A. Mason Survey and northeast corner of said John Champion

 3-5     Survey;

 3-6     THENCE South along the west line of said George Hayden Survey and

 3-7     the west line of the A. Schmidt Survey, Abstract 906, Newton County

 3-8     for a distance of 5280 feet to a point in the south line of Newton

 3-9     County and the north line of Orange County and being the southwest

3-10     corner of said A. Schmidt Survey and the northeast corner of the

3-11     Fisher & Henderson Survey, Abstract 84, Orange County, Texas and

3-12     also being the most northerly northwest corner of the G.C. &

3-13     S.F.R.R., Section 9, Abstract 263, Orange County, Texas;

3-14     THENCE South along the most northerly west line of said G.C. &

3-15     S.F.R.R., Section 9 for a distance of 5493 feet to the southeast

3-16     corner of said Fisher & Henderson Survey;

3-17     THENCE West along the south line of said Fisher & Henderson Survey

3-18     and the south line of the Low, Thaxton & Baxter Survey, Abstract

3-19     456, Orange County, Texas and being the most westerly north line of

3-20     said G.C. & S.F.R.R., Section 9 for a distance of 6687 feet to the

3-21     most westerly northwest corner of said G.C.  & S.F.R.R., Section 9,

3-22     in the east line of the Julius Claybar Survey, Abstract 65, Orange

3-23     County, Texas;

3-24     THENCE South along the most westerly west line of said G.G. &

3-25     S.F.R.R., Section 9 and the east line of said Julius Claybar Survey

3-26     for a distance of 1018 feet to the southwest corner of said G.G. &

3-27     S.F.R.R., Section 9, in the north line of the Charles Morgan

 4-1     League, Abstract 18, Orange County, Texas;

 4-2     THENCE East along the north line of said Charles Morgan League for

 4-3     a distance of 28,050 feet to a point for corner in the west bank of

 4-4     the Sabine River;

 4-5     THENCE northward with the meanders of the west bank of the Sabine

 4-6     River for a distance of 74,252 feet, more or less, back to the

 4-7     PLACE OF BEGINNING and containing 17,572 acres of land (27.5 square

 4-8     miles) more or less, consisting of 14,022 acres in Newton County,

 4-9     Texas and 3,550 acres in Orange County, Texas.

4-10           SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature

4-11     finds that the boundaries and field notes of the district form a

4-12     closure.  If any mistake is made in the field notes or in copying

4-13     the field notes in the legislative process, it in no way affects

4-14     the organization, existence, or validity of the district, or the

4-15     right of the district to issue any type of bonds or refunding bonds

4-16     for the purposes for which the district is created or to pay the

4-17     principal of and interest on the bonds, or in any other manner

4-18     affects the legality or operation of the district or its governing

4-19     body.

4-20           SECTION 5.  FINDING OF BENEFIT.  The legislature finds that

4-21     all of the land and other property included within the boundaries

4-22     of the district will be benefited by the works and projects that

4-23     are to be accomplished by the district under powers conferred by

4-24     Section 59, Article XVI, Texas Constitution, and that the district

4-25     is created to serve a public use and benefit.

4-26           SECTION 6.  POWERS.  (a)  The District has all of the rights,

4-27     powers, privileges, authority, functions, and duties conferred by

 5-1     the general law of this state applicable to special utility

 5-2     districts created under Section 59, Article XVI, Texas

 5-3     Constitution, including Chapters 49 and 65, Water Code.  This Act

 5-4     prevails over any provision of general law that is in conflict or

 5-5     inconsistent with this Act.

 5-6           (b)  The rights, powers, privileges, authority, functions,

 5-7     and duties granted to the district are subject to the continuing

 5-8     right of supervision of the state to be exercised by and through

 5-9     the Texas Natural Resource Conservation Commission.

5-10           SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is

5-11     governed by a board of seven directors.

5-12           (b)  Five directors shall be residents of Newton County and

5-13     two directors shall be residents of Orange County.  The board by

5-14     resolution may amend the requirement of this subsection as

5-15     necessary to comply with federal law.

5-16           SECTION 8.  TERMS OF DIRECTORS.  (a)  Temporary directors

5-17     serve until initial directors are elected under Section 10 of this

5-18     Act.

5-19           (b)  Initial directors serve until permanent directors are

5-20     elected under Section 11 of this Act.

5-21           (c)  Permanent directors serve staggered four-year terms.

5-22           (d)  Each director must qualify to serve as director in the

5-23     manner provided by Section 49.055, Water Code.

5-24           (e)  A director serves until the director's successor has

5-25     qualified.

5-26           SECTION 9.  TEMPORARY DIRECTORS.  (a)  The temporary board of

5-27     directors is composed of:

 6-1                 (1)  Clyde Taylor;

 6-2                 (2)  Eddie Jean Stephenson;

 6-3                 (3)  Cal Ebner;

 6-4                 (4)  Clyde LeLeux;

 6-5                 (5)  Verley Spell;

 6-6                 (6)  Sandra Welch; and

 6-7                 (7)  Leonard Powell.

 6-8           (b)  If a temporary director does not qualify for office, the

 6-9     remaining directors shall appoint a person to fill the vacancy.  If

6-10     at any time the number of qualified directors is less than seven

6-11     for any other reason, the Texas Natural Resource Conservation

6-12     Commission shall appoint the necessary number of directors to fill

6-13     all vacancies on the board.

6-14           SECTION 10.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.

6-15     (a)  The temporary board of directors shall call and hold an

6-16     election to confirm establishment of the district and to elect

6-17     seven initial directors as provided by Chapter 49, Water Code.

6-18           (b)  Section 41.001(a), Election Code, does not apply to a

6-19     confirmation election held as provided by this section.

6-20           SECTION 11.  ELECTION OF DIRECTORS.  On the first Saturday in

6-21     May of the first even-numbered year after the year in which the

6-22     confirmation election is held, an election shall be held in the

6-23     district for the election at large of four directors who shall each

6-24     serve two-year terms and three directors who shall each serve

6-25     four-year terms.  Thereafter, on the same date in each subsequent

6-26     second year, the appropriate number of directors shall be elected

6-27     to the board.

 7-1           SECTION 12.  ADDITIONAL POWERS.  (a)  The district as a

 7-2     special utility district may issue bonds to provide for all

 7-3     improvements and the maintenance of those improvements necessary to

 7-4     achieve the purposes of Section 59, Article XVI, Texas

 7-5     Constitution, and may provide for the payment of the bonds through

 7-6     ad valorem taxes and revenues collected for that purpose as

 7-7     authorized by Chapter 65, Water Code.

 7-8           (b)  The district may enter into contracts for:

 7-9                 (1)  the purchase or sale of both raw and treated

7-10     water;

7-11                 (2)  the transportation, treatment, and disposal of the

7-12     district's municipal or industrial waste;

7-13                 (3)  the transportation, treatment, and disposal of

7-14     municipal or industrial waste of others as provided by Chapter 30,

7-15     Water Code;

7-16                 (4)  the purchase, lease, use, management, control, or

7-17     operation of water treatment or distribution facilities or sewer

7-18     collection and treatment facilities, including all or part of

7-19     facilities or systems owned by other political subdivisions; and

7-20                 (5)  planning, surveying, investigating, or preparing

7-21     reports of any kind.

7-22           (c)  The district may acquire, develop, and use underground

7-23     or surface water rights.

7-24           SECTION 13.  DISTRICT FACILITIES.  (a)  The district by rule

7-25     may establish standard specifications for facilities that are

7-26     designed or constructed to provide:

7-27                 (1)  storage, treatment, or transportation of water for

 8-1     domestic, municipal, or industrial purposes;

 8-2                 (2)  collection, treatment, and disposal of sewage; or

 8-3                 (3)  disposal of solid waste.

 8-4           (b)  The board shall hold a public hearing on the adoption of

 8-5     standards for facilities of the district.  The board shall give

 8-6     notice of the hearing to the Texas Natural Resource Conservation

 8-7     Commission and the Texas Department of Health and shall publish

 8-8     notice of the hearing in a newspaper with general circulation in

 8-9     the district not later than the 10th day before the date set for

8-10     the hearing.

8-11           (c)  Appeal for an order adopting standard specifications may

8-12     be made to a district court of either Newton or Orange County, and

8-13     the substantial evidence rule applies.

8-14           (d)  The district may seek injunctive relief against the

8-15     construction of, addition to, or operation of any facility within

8-16     the district's jurisdiction if the construction of, addition to, or

8-17     operation of the facility does not comply with the district's

8-18     standard specifications.

8-19           (e)  The district shall file the district's standard

8-20     specifications with the Texas Natural Resource Conservation

8-21     Commission.

8-22           (f)  Specifications adopted under this section do not apply

8-23     within the boundaries or extraterritorial jurisdiction of a

8-24     municipality unless the governing body of the municipality by

8-25     resolution gives its approval.

8-26           SECTION 14.  CONSTRUCTION AND ACQUISITION OF SYSTEMS.

8-27     (a)  The district may acquire any existing water system, sewer

 9-1     system, or water and sewer system that serves all or part of the

 9-2     territory located inside or outside the district's boundaries.

 9-3           (b)  The district may improve and extend an acquired system

 9-4     or may construct a water system, sewer system, or a water and sewer

 9-5     system.

 9-6           (c)  Construction contracts are governed by the competitive

 9-7     bidding requirement of the Water Code.  Contracts for the

 9-8     acquisition of existing water or sewer facilities may be made on

 9-9     terms agreed on by the parties.

9-10           SECTION 15.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.

9-11     (a)  The proper and legal notice of the intention to introduce this

9-12     Act, setting forth the general substance of this Act, has been

9-13     published as provided by law, and the notice and a copy of this Act

9-14     has been furnished to all persons, agencies, officials, or entities

9-15     to which they are required to be furnished by the constitution and

9-16     laws of this state, including the governor, who has submitted the

9-17     notice and Act to the Texas Natural Resource Conservation

9-18     Commission.

9-19           (b)  The Texas Natural Resource Conservation Commission has

9-20     filed its recommendations relating to this Act with the governor,

9-21     lieutenant governor, and speaker of the house of representatives

9-22     within the required time.

9-23           (c)  The general law relating to consent by political

9-24     subdivisions to the creation of conservation and reclamation

9-25     districts and the inclusion of land in those districts has been

9-26     complied with, and all requirements of the constitution and laws of

9-27     this state and the rules and procedures of this legislature with

 10-1    respect to the notice, introduction, and passage of this Act are

 10-2    fulfilled and accomplished.

 10-3          SECTION 16.  EMERGENCY.  The importance of this legislation

 10-4    and the crowded condition of the calendars in both houses create an

 10-5    emergency and an imperative public necessity that the

 10-6    constitutional rule requiring bills to be read on three several

 10-7    days in each house be suspended, and this rule is hereby suspended,

 10-8    and that this Act take effect and be in force from and after its

 10-9    passage, and it is so enacted.

10-10                         COMMITTEE AMENDMENT NO. 1

10-11          Amend H.B. 3549 as follows:

10-12          On page 7, line 6, strike the words "ad valorem taxes and"

10-13    between the words "through" on line 5 and "revenues" on line 6.

10-14                                                        Lewis of Orange