1-1                                   AN ACT

 1-2     relating to authorizing Lakeway Municipal Utility District to

 1-3     exclude land from its boundaries, providing notice of the

 1-4     exclusion, and adding other related provisions.

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

 1-6           SECTION 1.  DEFINITIONS.  In this Act:

 1-7                 (1)  "District" means Lakeway Municipal Utility

 1-8     District, Travis County, Texas, created by order of the Texas Water

 1-9     Rights Commission on February 17, 1972.

1-10                 (2)  "Board" means the board of directors of the

1-11     district.

1-12           SECTION 2.  EXCLUSION OF LAND.  The board in its sole

1-13     discretion may call a hearing to consider excluding land from the

1-14     district, or the board may determine not to call a hearing to

1-15     exclude land from the district.  If the board holds a hearing, the

1-16     board may by order exclude from the district land within the

1-17     district boundaries on any of the grounds for exclusion included in

1-18     Section 49.306, Water Code, if:

1-19                 (1)  the board receives a petition, signed by the

1-20     owners of the land to be excluded and consented to by all persons

1-21     holding liens on the land, requesting exclusion of the land as

1-22     described by metes and bounds; and

1-23                 (2)  the owners of the land pay to the district a

1-24     payment and any other fees or costs required by the district.

 2-1           SECTION 3.  NOTICE OF HEARING.  In addition to the notice

 2-2     required by Section 49.304, Water Code, the district shall publish

 2-3     notice of the exclusion hearing in a nationally recognized

 2-4     financial journal and shall mail notice by certified mail to the

 2-5     paying agent or registrar of the district's outstanding bonds.  The

 2-6     notice shall be published and mailed not later than the 30th day

 2-7     before the hearing date, advising any district bondholder,

 2-8     taxpayer, or other interested party that the person may appear at

 2-9     the exclusion hearing in support of or in opposition to the

2-10     petition for exclusion.

2-11           SECTION 4.  EXCLUSION AND BOND REFUNDING.  The exclusion

2-12     authorized by this Act may be done contemporaneously with a

2-13     refunding of the district's outstanding bonds.  If the exclusion is

2-14     done in that manner, the only notice required is the notice

2-15     specified by Section 49.304, Water Code.

2-16           SECTION 5.  OTHER APPLICABLE LAW.  Sections 49.307 and

2-17     49.308, Water Code, apply to all exclusions of land under this Act.

2-18           SECTION 6.  EMERGENCY.  The importance of this legislation

2-19     and the crowded condition of the calendars in both houses create an

2-20     emergency and an imperative public necessity that the

2-21     constitutional rule requiring bills to be read on three several

2-22     days in each house be suspended, and this rule is hereby suspended,

2-23     and that this Act take effect and be in force from and after its

2-24     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3589 was passed by the House on May

         10, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3589 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor