1-1 AN ACT 1-2 relating to the creation, administration, powers, duties, 1-3 operation, and financing of the Parker County Utility District No. 1-4 1; granting the power of eminent domain. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. CREATION OF THE DISTRICT 1-7 SECTION 1.01. CREATION. (a) A regional wastewater 1-8 district, to be known as the Parker County Utility District No. 1, 1-9 is created. The district is a governmental agency and a body 1-10 politic and corporate. 1-11 (b) The district is created under and is essential to 1-12 accomplish the purposes of Section 59, Article XVI, Texas 1-13 Constitution. 1-14 SECTION 1.02. DEFINITIONS. In this Act: 1-15 (1) "Board" means the board of directors of the 1-16 district. 1-17 (2) "Bond" means all interest-bearing obligations, 1-18 including bonds, notes, debentures, certificates, warrants, 1-19 securities, interim certificates or receipts, and other evidences 1-20 of debt issued by the district, whether general or special, 1-21 negotiable or nonnegotiable in form, in bearer or registered form, 1-22 temporary or permanent in form, or with or without interest 1-23 coupons. 1-24 (3) "Customer" means a wholesale user of wastewater or 2-1 other services provided by the district. 2-2 (4) "Director" means a member of the board. 2-3 (5) "District" means the Parker County Utility 2-4 District No. 1. 2-5 (6) "Local government" means a municipality, county, 2-6 or entity created under Section 52, Article III, or Section 59, 2-7 Article XVI, Texas Constitution. 2-8 (7) "Member entity" means a public entity or private 2-9 utility entity that: 2-10 (A) provides retail utility service or regulates 2-11 water, wastewater, sewage, or solid waste within the district; and 2-12 (B) enters into a contract with the district for 2-13 service. 2-14 (8) "Participant entity" means a public entity or 2-15 private utility entity that: 2-16 (A) provides utility service within the 2-17 boundaries of the entity; and 2-18 (B) enters into a contract with the district for 2-19 the construction of and payment for wastewater or other utility 2-20 service projects to be financed or provided by the district. 2-21 (9) "Person" means an individual, firm, association, 2-22 corporation, business trust, partnership, government or 2-23 governmental agency, joint venture, or other legal entity. 2-24 (10) "Service area" means the territory within the 2-25 district and within the corporate limits or defined boundaries of 2-26 all member entities, participant entities, and customers of the 2-27 district, including the areas served by the member entities, 3-1 participant entities, and customers. 3-2 SECTION 1.03. PURPOSES. The district is created to 3-3 accomplish the following purposes: 3-4 (1) to purchase, own, hold, lease, or otherwise 3-5 acquire wastewater collection facilities; 3-6 (2) to build, operate, and maintain facilities to 3-7 treat and transport wastewater; 3-8 (3) to protect, preserve, and restore the purity and 3-9 sanitary condition of water within the district; and 3-10 (4) to provide other utilities within the district if 3-11 the utilities are not otherwise provided. 3-12 SECTION 1.04. BOUNDARIES. The district includes the 3-13 territory contained within the following area: 3-14 BEGINNING at a point in the centerline of Highway 51; said point 3-15 being approximately 31,500 feet north along the centerline of 3-16 Highway 51 from the centerline intersection of Highway 199, said 3-17 point also being in the northern boundary line for the Walnut Creek 3-18 Special Utility District (WCSUD); 3-19 1. THENCE North 90 East, 8200 Feet along the WCSUD boundary; 3-20 2. THENCE South 00 East, 9800 Feet along the WCSUD boundary; 3-21 3. THENCE North 90 East, 6100 Feet along the WCSUD boundary; 3-22 4. THENCE South 00 East, 6700 Feet along the WCSUD boundary; 3-23 5. THENCE North 90 East, 1300 Feet along the WCSUD boundary; 3-24 6. THENCE South 00 East, 992.04 Feet along the WCSUD boundary to a 3-25 point of divergence; 3-26 7. THENCE South 8922'10" East, 20491.62 Feet; 3-27 8. THENCE South 0052'05" East, 26624.35 Feet; 4-1 9. THENCE South 8929'51" West, 215.45 Feet; 4-2 10. THENCE South 0030'09" East, 1930.51 Feet; 4-3 11. THENCE South 8929'51" West, 4703.61 Feet; 4-4 12. THENCE South 0030'09" East, 3134.46 Feet; 4-5 13. THENCE South 8929'51" West, 1041.52 Feet; 4-6 14. THENCE North 7455'09" West, 4870.79 Feet; 4-7 15. THENCE North 6402'36" West, 122.68 Feet; 4-8 16. THENCE South 0030'09" East, 2550.47 Feet; 4-9 17. THENCE South 8929'51" West, 1262.75 Feet to a point in the 4-10 boundary of WCSUD; 4-11 18. THENCE South 00 East, 4103.65 Feet along the WCSUD boundary; 4-12 19. THENCE North 90 West, 45600 Feet along the WCSUD boundary; 4-13 20. THENCE North 00 East, 12400 Feet along the WCSUD boundary; 4-14 21. THENCE North 90 West, 14,200 Feet along the WCSUD boundary; 4-15 22. THENCE North 00 East, 36500 Feet along the WCSUD boundary; 4-16 23. THENCE North 90 East, 25500 Feet along the WCSUD boundary; 4-17 24. THENCE North 00 East, 5900 Feet along the WCSUD boundary; 4-18 25. THENCE North 90 East, 9775.84 Feet to the POINT OF BEGINNING 4-19 and containing 70,490 gross acres more or less. Save and except 4-20 CCN areas numbered 10266, 10285, 12397 (except for dually 4-21 certificated portion), 11719 and 12427. 4-22 SECTION 1.05. FINDINGS RELATING TO BOUNDARIES. The 4-23 legislature finds that the boundaries and field notes of the 4-24 district form a closure. A mistake in the field notes or in 4-25 copying the field notes in the legislative process does not affect 4-26 the organization, existence, or validity of the district, or the 4-27 legality or operation of the district or its governing body. 5-1 SECTION 1.06. FINDING OF BENEFIT. All of the land and other 5-2 property included within the boundaries of the district will be 5-3 benefited by the improvements, works, and projects that are to be 5-4 accomplished by the district under the powers conferred by this Act 5-5 and under Section 59, Article XVI, Texas Constitution. 5-6 SECTION 1.07. FINDING OF STATE BENEFIT. The legislature 5-7 finds that creation of the district will benefit the state by: 5-8 (1) contributing to economic development and 5-9 diversification; 5-10 (2) decreasing the rate of unemployment and 5-11 underemployment; 5-12 (3) stimulating agricultural innovation; 5-13 (4) fostering enterprise growth based on agriculture; 5-14 and 5-15 (5) contributing to the development or expansion of 5-16 transportation and commerce. 5-17 SECTION 1.08. POWERS. (a) Except as provided by this 5-18 section, the district has all of the rights, powers, privileges, 5-19 authority, functions, and duties provided by the general law of 5-20 this state, including Chapters 49, 54, and 65, Water Code, and 5-21 conferred by Section 59, Article XVI, Texas Constitution. This Act 5-22 prevails over any provision of general law that is in conflict or 5-23 inconsistent with this Act. 5-24 (b) The district may not levy or collect ad valorem taxes. 5-25 (c) The rights, powers, privileges, authority, functions, 5-26 and duties of the district are subject to the continuing right of 5-27 supervision of the state to be exercised by and through the Texas 6-1 Natural Resource Conservation Commission. Except as provided by 6-2 this Act or other state law, the district may exercise the rights, 6-3 powers, privileges, authority, functions, and duties conferred by 6-4 this Act without having to obtain approval from the Texas Natural 6-5 Resource Conservation Commission. 6-6 SECTION 1.09. CONFIRMATION ELECTION NOT REQUIRED. Creation 6-7 of the district does not require a confirmation election. 6-8 ARTICLE 2. ADMINISTRATIVE PROVISIONS 6-9 SECTION 2.01. APPOINTMENT OF DIRECTORS. (a) The district 6-10 is governed by a board of directors as provided by this section. 6-11 (b) The governing bodies of the City of Springtown and the 6-12 Walnut Creek Special Utility District shall each appoint three 6-13 initial directors. 6-14 (c) Initial directors serve until permanent directors 6-15 appointed under Subsection (e) of this section take office. 6-16 (d) The Parker County judge, or a person designated by the 6-17 Parker County judge, serves as an ex officio director. A person 6-18 who serves as an ex officio director under this subsection may vote 6-19 on any matter considered by the board. 6-20 (e) Permanent directors shall be appointed as provided by 6-21 Subsection (f) of this section by the governing bodies of the 6-22 member entities of the district not earlier than April 1 or later 6-23 than April 30 of 1998. 6-24 (f) Each member entity shall appoint: 6-25 (1) one director if the number of member entities of 6-26 the district is at least six; 6-27 (2) two directors if the number of member entities of 7-1 the district is at least three, but less than six; 7-2 (3) three directors if there are two member entities 7-3 of the district; or 7-4 (4) six directors if there is one member entity of the 7-5 district. 7-6 (g) Not earlier than April 1 or later than April 30 of each 7-7 year after 1998, the appropriate number of permanent directors, if 7-8 any, shall be appointed to the board as provided by Subsection (f) 7-9 of this section. 7-10 (h) Permanent directors serve staggered four-year terms, 7-11 unless required by the board to serve a term of less than four 7-12 years under Subsection (j) of this section. 7-13 (i) Permanent directors appointed under Subsections (e) and 7-14 (g) of this section serve beginning May 1 of the year in which the 7-15 director is appointed and until the director's successor has 7-16 qualified. 7-17 (j) For purposes of staggering the terms of office of 7-18 directors as required by Subsection (h) of this section, the board 7-19 shall develop a procedure to determine which directors appointed 7-20 under Subsections (e) and (g) of this section serve four-year terms 7-21 and which directors serve terms of less than four years. 7-22 (k) A vacancy on the board shall be filled by appointment 7-23 made by the governing body of the appropriate member entity. An 7-24 appointment under this subsection may be made any time after the 7-25 vacancy occurs. A member entity that makes an appointment under 7-26 this subsection shall provide notice of the appointment to the 7-27 board not later than six hours before the first board meeting 8-1 following the appointment. An appointment made under this 8-2 subsection is effective on the date notice is received by the 8-3 board. If notice of an appointment is not provided as required by 8-4 this subsection, the appointment is not effective until after the 8-5 first board meeting following the appointment. 8-6 (l) The appointment of a director is not valid unless the 8-7 appointment is made as provided by this section. 8-8 (m) A participant entity or customer may not appoint a 8-9 director under this section. 8-10 SECTION 2.02. REMOVAL OF DIRECTORS. A director may be 8-11 removed for any reason: 8-12 (1) by the governing body of the member entity that 8-13 appointed the director; or 8-14 (2) if three-quarters of the directors vote to remove 8-15 the director. 8-16 SECTION 2.03. DIRECTOR QUALIFICATIONS. A person is 8-17 qualified to serve as a director if the person: 8-18 (1) is at least 18 years of age; 8-19 (2) is a qualified voter who resides within the 8-20 boundaries of the district; 8-21 (3) qualifies to serve as a director by taking the 8-22 oath of office; 8-23 (4) except as otherwise provided by this section, is 8-24 eligible to serve as a director under Subchapter C, Chapter 49, 8-25 Water Code; and 8-26 (5) verifies compliance with the requirements of this 8-27 section. 9-1 SECTION 2.04. DIRECTOR VOTING. A director, including the 9-2 chairman elected under Section 2.09 of this article, may vote on 9-3 any matter considered by the board, including a matter authorizing 9-4 a financial commitment to a capital project. This section applies 9-5 to a director notwithstanding that the director was appointed by a 9-6 member entity of the district that is not participating in the 9-7 project being considered by the board. 9-8 SECTION 2.05. DIRECTOR COMPENSATION. (a) Except as 9-9 provided by Subsection (b), a director may not receive compensation 9-10 for serving on the board. 9-11 (b) A director may receive reimbursement for travel or other 9-12 expenses reasonably incurred by the director while acting on behalf 9-13 of the district. The board may adopt reasonable policies governing 9-14 the reimbursement of director expenses under this subsection, 9-15 including a requirement that the director provide written 9-16 verification of expenses. 9-17 SECTION 2.06. EX OFFICIO DIRECTORS. The board may appoint 9-18 or elect ex officio directors of the district and provide for the 9-19 powers and duties of such directors in the bylaws, rules, or 9-20 regulations of the district. 9-21 SECTION 2.07. EXCLUSIVE AUTHORITY OF BOARD. The board has 9-22 the exclusive authority to manage the district. 9-23 SECTION 2.08. POWERS AND DUTIES OF THE BOARD. (a) The 9-24 board shall: 9-25 (1) adopt a seal for the district; 9-26 (2) adopt bylaws to govern matters of the district; 9-27 and 10-1 (3) hold regular and, if necessary, special and 10-2 emergency board meetings. 10-3 (b) The board may amend bylaws adopted under Subsection 10-4 (a)(2) of this section. 10-5 (c) The board shall hold board meetings at a time and place 10-6 specified in the district bylaws. 10-7 SECTION 2.09. ELECTION OF OFFICERS. (a) At the first board 10-8 meeting following the appointment of initial directors under 10-9 Section 2.01(b) of this article, the board shall elect from the 10-10 initial directors primary officers for the district, including a 10-11 chairman, vice chairman, secretary, and treasurer, and any other 10-12 officer that the board determines is necessary. 10-13 (b) At the first board meeting following the appointment of 10-14 permanent directors under Section 2.01(e) of this article, the 10-15 board shall elect from the permanent directors new officers for the 10-16 district. 10-17 (c) Each subsequent year at the first board meeting 10-18 following the appointment of the appropriate number of directors 10-19 under Section 2.01(g) of this section, the board shall elect from 10-20 the directors new officers for the district. 10-21 (d) Officers serve until the election of new officers under 10-22 this section. 10-23 SECTION 2.10. POWERS AND DUTIES OF OFFICERS. (a) The 10-24 chairman of the board elected under Section 2.09 of this article is 10-25 the chief executive officer of the district and the presiding 10-26 officer of the board. 10-27 (b) The vice chairman of the board elected under Section 11-1 2.09 of this article may perform the duties and exercise the powers 11-2 of the chairman if the chairman is absent or fails, refuses, or is 11-3 unable to act. 11-4 (c) The secretary of the board elected under Section 2.09 of 11-5 this article or an assistant secretary: 11-6 (1) shall keep a record of the minutes of the board 11-7 meetings; 11-8 (2) shall maintain the official records of the 11-9 district; and 11-10 (3) may certify the accuracy and authenticity of any 11-11 actions, proceedings, minutes, or records of the board or the 11-12 district. 11-13 (d) The board may provide for additional powers and duties 11-14 of officers elected under Section 2.09 of this article in the 11-15 district bylaws. 11-16 SECTION 2.11. DISTRICT EMPLOYEES. The board may appoint and 11-17 employ any person, firm, corporation, partnership, or other entity 11-18 that the board determines is necessary to conduct the affairs of 11-19 the district, including a general manager, engineer, attorney, 11-20 financial advisor, accountant, or other consultant. 11-21 SECTION 2.12. CONFLICT OF INTEREST. Directors and officers 11-22 of the district are subject to Chapter 572, Government Code. 11-23 SECTION 2.13. OPEN RECORDS. Chapter 552, Government Code, 11-24 applies to the minutes, orders, contracts and related instruments, 11-25 books, records, audits, and other documents of the district. 11-26 SECTION 2.14. DISTRICT BUSINESS. (a) A quorum of the 11-27 directors of the district is required to be present at a board 12-1 meeting for the board to conduct district business. The board 12-2 shall specify in the district bylaws the number of directors that 12-3 constitute a quorum, except that a quorum may not be less than a 12-4 majority of the directors serving on the board. 12-5 (b) The board shall specify in the district bylaws the 12-6 number of votes necessary to approve a matter considered by the 12-7 board, except that the number of votes specified may not be less 12-8 than a majority of the directors present at the meeting in which 12-9 the matter is being considered. 12-10 SECTION 2.15. CUSTOMER ADVISORY COUNCIL. (a) The board may 12-11 establish a customer advisory council as provided by this section. 12-12 (b) A customer advisory council established under this 12-13 section shall consist of one representative of each customer of the 12-14 district. 12-15 (c) A representative serving on a customer advisory council 12-16 established under this section: 12-17 (1) has the powers and duties provided in the bylaws, 12-18 rules, and regulations of the district; and 12-19 (2) may not vote on any matter considered by the 12-20 board. 12-21 (d) A customer advisory council established under this 12-22 section may be abolished by the board. 12-23 SECTION 2.16. ADMINISTRATION AND PLANNING COSTS FEE. The 12-24 district may charge each member entity an annual pro rata fee to 12-25 pay for administration and planning costs incurred by the district 12-26 that are unrelated to capital projects financed by the district. A 12-27 fee charged a member entity under this section may not exceed $2 13-1 per capita population of the member entity, unless the board and at 13-2 least 75 percent of the member entities of the district that 13-3 together have at least 75 percent of the population of the district 13-4 agree to a different fee. 13-5 SECTION 2.17. EXPANSION OF DISTRICT BOUNDARIES. On request 13-6 by a member entity, the boundaries of the district may be expanded 13-7 to include additional or the remaining territory of the member 13-8 entity if: 13-9 (1) the boundaries of the member entity are contiguous 13-10 to the boundaries of the district; and 13-11 (2) the requested expansion is approved by a 13-12 three-quarters majority vote of the directors of the district. 13-13 SECTION 2.18. RULES AND REGULATIONS. The board may adopt 13-14 and enforce reasonable rules and regulations to exercise the powers 13-15 and perform the duties of the district as provided by this Act. 13-16 ARTICLE 3. RIGHTS, POWERS, AND DUTIES 13-17 SECTION 3.01. RIGHTS IN SERVICE AREA. (a) The district may 13-18 provide wastewater collection, treatment, or service within the 13-19 district. 13-20 (b) The district may own, operate, and provide other 13-21 necessary utilities and services within the district, including raw 13-22 water, potable water, water distribution and treatment, solid waste 13-23 collection and disposal, fire, police, and ambulance services, if 13-24 the right to own, operate, or provide the utility or service has 13-25 not been conveyed to another entity, unless the entity to which the 13-26 right has been conveyed agrees to sell, cede, or otherwise convey 13-27 to the district the right to own, operate, or provide the utility 14-1 or service. 14-2 (c) Subsection (b) does not require the district to own, 14-3 operate, or provide other necessary utilities or services within 14-4 the district, unless the district is required to own, operate, or 14-5 provide the utility or service under a permit, certificate, or 14-6 license issued by the state. 14-7 SECTION 3.02. RIGHTS OF OTHER ENTITIES PROTECTED. (a) 14-8 Except as provided by Subsection (b), a customer or prospective 14-9 customer of the district is not required under this Act to secure 14-10 wastewater or other utility service from the district, unless the 14-11 customer or prospective customer enters into a contract with the 14-12 district for that purpose. 14-13 (b) A customer or prospective customer is required under 14-14 this Act to secure wastewater or other utility service from the 14-15 district if: 14-16 (1) the customer or prospective customer is not 14-17 receiving the service from another source; and 14-18 (2) the district provides the service or determines 14-19 that the district will make the service available to the customer 14-20 or prospective customer. 14-21 (c) If a customer enters into a contract with the district 14-22 to secure wastewater or other utility service from the district, a 14-23 user of the service under the contract must connect to the 14-24 district's service system if: 14-25 (1) the user is located within the boundaries of the 14-26 customer; and 14-27 (2) the district's system is available for connection 15-1 at or near the property line of the user. 15-2 (d) A contract under this section may provide that the 15-3 district may: 15-4 (1) require the customer to terminate service provided 15-5 to a user who fails or refuses to pay for that service after 15-6 providing notice as required by law; 15-7 (2) terminate service provided to a customer or user 15-8 who fails or refuses to pay for that service after providing notice 15-9 as required by law; and 15-10 (3) terminate other utility services provided to a 15-11 customer or user if the customer or user fails or refuses to pay 15-12 for any service provided by the district after providing notice as 15-13 required by law. 15-14 (e) This Act does not alter any existing permit, contract, 15-15 or other obligation, or impair the right of any entity to own, 15-16 operate, maintain, or otherwise use, provide, or control water, 15-17 wastewater, solid waste, or liquid waste under the governing law of 15-18 the entity. 15-19 SECTION 3.03. PURCHASE, CONSTRUCT, OR ACQUIRE WORKS AND 15-20 FACILITIES. The district may plan, lay out, purchase, construct, 15-21 acquire, own, operate, maintain, repair, or improve, or contract 15-22 for, within or outside the boundaries of the district, any works, 15-23 improvements, facilities, plants, equipment, and appliances, 15-24 including any administrative properties and facilities, any 15-25 permits, franchises, licenses, or contract or property rights, and 15-26 any levees, drains, waterways, lakes, reservoirs, channels, 15-27 conduits, sewers, dams, storm water detention facilities, treatment 16-1 plants, or other similar facilities and improvements, whether for 16-2 municipal, industrial, agricultural, flood control, or related 16-3 purposes, that are necessary, helpful, or incidental to the 16-4 exercise of any right, power, privilege, authority, or function 16-5 provided by this Act. 16-6 SECTION 3.04. FINANCING CAPITAL IMPROVEMENTS. The district 16-7 is a political subdivision for purposes of Chapter 395, Local 16-8 Government Code. 16-9 SECTION 3.05. ADDITIONAL POWERS. The district may: 16-10 (1) provide for: 16-11 (A) the collection, construction, improvement, 16-12 maintenance, and operation of wholesale wastewater and water 16-13 systems and treatment works necessary to provide wholesale service 16-14 to customers of the district; and 16-15 (B) the acquisition, construction, improvement, 16-16 and maintenance of water supply, reservoir, or interest in water 16-17 supply or reservoir, necessary to exercise and fulfill the powers 16-18 and duties of the district; 16-19 (2) supply water for municipal, domestic, and 16-20 industrial or other beneficial uses or controls; 16-21 (3) collect, treat, process, dispose of, and control 16-22 all domestic or industrial wastes, whether in fluid, solid, or 16-23 composite state; 16-24 (4) gather, conduct, divert, control, and treat local 16-25 storm water or local harmful excesses of water within the 16-26 boundaries of the district; and 16-27 (5) irrigate and alter land elevations within the 17-1 boundaries of the district as needed. 17-2 SECTION 3.06. EMINENT DOMAIN. (a) The district may acquire 17-3 by purchase or eminent domain land, an easement, a right-of-way, or 17-4 other property or improvement within or outside the boundaries of 17-5 the district if necessary or appropriate in exercising the powers 17-6 and performing the functions of the district. 17-7 (b) The power of eminent domain may be exercised by the 17-8 district under Subsection (a) of this section as provided by state 17-9 law, including Chapter 21, Property Code, except that the district 17-10 is not required to comply with the requirements of Section 17-11 21.021(a), Property Code, during the pendency of the subject 17-12 litigation. 17-13 (c) The district is not required in a condemnation 17-14 proceeding brought by the district: 17-15 (1) to pay in advance or give bond or other security 17-16 for costs; 17-17 (2) to give bond for the issuance of a temporary 17-18 restraining order or a temporary injunction; or 17-19 (3) to give bond for costs or supersedeas on an appeal 17-20 or writ of error. 17-21 (d) The district may not exercise the power of eminent 17-22 domain to acquire: 17-23 (1) property located in the existing corporate limits 17-24 of a municipality that is located in whole or in part within the 17-25 district unless the governing body of the municipality in which the 17-26 property is located consents by resolution to the acquisition of 17-27 the property; 18-1 (2) property located outside the boundaries of the 18-2 district to be used as a water supply reservoir unless the county 18-3 in which the reservoir is to be located consents; 18-4 (3) property owned by a county, a municipality, an 18-5 entity created by special act of the legislature under Section 52, 18-6 Article III, or Section 59, Article XVI, Texas Constitution, a 18-7 political subdivision of the state, or an agency or instrumentality 18-8 of a county or municipality; or 18-9 (4) a waterworks system or a wastewater system owned 18-10 by a municipality, an entity created by special act of the 18-11 legislature under Section 52, Article III, or Section 59, Article 18-12 XVI, Texas Constitution, a political subdivision of the state, a 18-13 private party, or a nonprofit corporation. 18-14 (e) If the district exercises the power of eminent domain 18-15 and requires relocating, raising, lowering, rerouting, changing the 18-16 grade, or altering the construction of any railroad, highway, 18-17 pipeline, or electric transmission and electric distribution, 18-18 telegraph, or telephone lines, conduits, poles, or facilities, the 18-19 district shall pay the cost of relocating, raising, lowering, 18-20 rerouting, changing the grade, or altering the construction that 18-21 equals the comparable replacement cost without enhancement of 18-22 facilities minus the net salvage value derived from the old 18-23 facility. 18-24 SECTION 3.07. SERVICE OUTSIDE DISTRICT. The district may 18-25 provide services outside the service area of the district as 18-26 provided by state law. 18-27 SECTION 3.08. DISPOSAL SYSTEMS. (a) The district may 19-1 establish, acquire, operate, and maintain a regional solid waste 19-2 disposal system and a nonhazardous liquid waste disposal system. 19-3 (b) If the district establishes a disposal system under 19-4 Subsection (a) of this section, the district shall provide 19-5 services from the system to: 19-6 (1) users as determined by the board if the services 19-7 are provided within the service area of the district; and 19-8 (2) customers if the services are provided outside the 19-9 service area of the district. 19-10 SECTION 3.09. RULES RELATING TO WATER QUALITY. (a) The 19-11 district may adopt and enforce rules relating to protection of the 19-12 quality of water flowing to or from the areas in or surrounding the 19-13 lakes, reservoirs, and other sources of water supply owned, 19-14 operated, or controlled by the district. 19-15 (b) The rules adopted by the district under Subsection (a) 19-16 of this section must: 19-17 (1) relate to: 19-18 (A) the prevention of waste or unauthorized use 19-19 of water controlled by the district; or 19-20 (B) the regulation of privileges on land, a 19-21 reservoir, or an easement owned or controlled by the district; and 19-22 (2) be consistent with rules and regulations of the 19-23 state. 19-24 SECTION 3.10. RATES, FEES, CHARGES, AND RENTALS. (a) The 19-25 district may adopt, enforce, and collect all assessed charges, 19-26 fees, rates, and rentals that are necessary to provide services and 19-27 facilities to customers and users of the district. Rates, fees, 20-1 and charges assessed under this section may vary according to 20-2 customer class, project, or service area to reflect different costs 20-3 of providing service. 20-4 (b) The district may require a customer to obtain a deposit 20-5 from a user for services or facilities provided by the district. A 20-6 deposit under this subsection may bear interest. 20-7 (c) If the district issues revenue bonds or other 20-8 obligations payable wholly from revenue, the board shall establish 20-9 and revise rates of compensation for water sold and wastewater or 20-10 other services rendered by the district that are sufficient: 20-11 (1) to pay operating and maintenance expenses of 20-12 district facilities; 20-13 (2) to pay the issued bonds as the bonds mature and 20-14 the interest that accrues on the bonds; 20-15 (3) to maintain the district's fund reserve; and 20-16 (4) to maintain other funds of the district provided 20-17 by the resolution that authorized the issuance of the bonds. 20-18 (d) A local government, water supply corporation, or other 20-19 entity that enters into a contract with the district may: 20-20 (1) establish, charge, and collect fees, rates, 20-21 charges, rentals, or other amounts for services or facilities 20-22 provided under the contract; and 20-23 (2) pledge amounts that are sufficient to make the 20-24 required payments under the contract. 20-25 (e) The district may discontinue providing a service or 20-26 facility to prevent an abuse or to enforce the payment of an unpaid 20-27 charge, fee, or rental due and payable to the district. 21-1 SECTION 3.11. REGULATORY POWER OF MUNICIPALITIES. The 21-2 district and the land within the district are subject to any 21-3 ordinances, codes, resolutions, rules, or regulations of a 21-4 municipality, including platting and zoning requirements, that has 21-5 jurisdiction over territory within the district. 21-6 SECTION 3.12. GENERAL CONTRACTING AUTHORITY. (a) The 21-7 district may, if necessary to exercise the powers and accomplish 21-8 the purposes of the district, enter into a contract with the United 21-9 States, any agency of the United States, a municipality, county, 21-10 water supply corporation, an entity created under Section 52, 21-11 Article III, or Section 59, Article XVI, Texas Constitution, or 21-12 other public or private entity. 21-13 (b) The district may enter into a contract for the 21-14 acquisition, purchase, rental, lease, or operation of wastewater or 21-15 water facilities owned or operated by the party contracting with 21-16 the district. 21-17 (c) The district may acquire water appropriation or other 21-18 necessary permits from the state or permit owners. 21-19 (d) A contract that requires payment of money by the 21-20 district may be satisfied from any general or specific source of 21-21 district funds as determined by the board. 21-22 SECTION 3.13. AUTHORITY TO CONTRACT WITH DISTRICT. (a) A 21-23 municipality, county, public agency, political subdivision of the 21-24 state, an entity created under Section 52, Article III, or Section 21-25 59, Article XVI, Texas Constitution, or a water supply corporation 21-26 may enter into a contract with the district if the entity is 21-27 conducting business in whole or part within the district. 22-1 (b) The governing body of an entity that enters into a 22-2 contract under this section with the district may pledge to the 22-3 payment of the contract any source of revenue that is available to 22-4 the governing body, including revenue derived from levying and 22-5 collecting ad valorem taxes. 22-6 (c) If an entity under this section pledges to the payment 22-7 of a contract funds derived from the entity's water system, 22-8 wastewater system, or combined water and wastewater system, the 22-9 payments constitute an operating expense of that system. 22-10 SECTION 3.14. DEPOSITORY. (a) The board, by order or 22-11 resolution, shall designate one or more banks inside or outside the 22-12 boundaries of the district to serve as depository for the funds of 22-13 the district. 22-14 (b) Except as provided by this Act, district funds shall be 22-15 deposited in a depository bank designated under Subsection (a) of 22-16 this section. 22-17 (c) The board may invest district funds: 22-18 (1) in the same manner as provided for the investment 22-19 of county funds; and 22-20 (2) as provided by the Public Funds Investment Act, 22-21 Chapter 2256, Government Code. 22-22 (d) District funds shall be secured in the same manner as 22-23 provided for the deposit of public funds under the Public Funds 22-24 Collateral Act, Chapter 2257, Government Code. 22-25 SECTION 3.15. JOINT AUTHORITY. For purposes of 22-26 accomplishing the objectives and exercising the powers of the 22-27 district, the district may: 23-1 (1) enter into an agreement with a local government 23-2 under the Interlocal Cooperation Act, Chapter 791, Government Code; 23-3 and 23-4 (2) enter into a joint agreement or contract with a 23-5 water supply corporation, municipality, an entity created under 23-6 Section 52, Article III, or Section 59, Article XVI, Texas 23-7 Constitution, a county, a political subdivision of the state, the 23-8 state, or other private or public entity. 23-9 ARTICLE 4. GENERAL FISCAL PROVISIONS 23-10 SECTION 4.01. AUDITS. All funds and accounts of the 23-11 district shall be audited by an independent auditor. A copy of an 23-12 audit required under this section shall be maintained in the 23-13 official records of the district. 23-14 SECTION 4.02. CREATION EXPENSES. (a) The district may pay 23-15 the costs and expenses incurred in obtaining the Walnut Basin 23-16 Regional Wastewater Study and, if conducted, other feasibility 23-17 studies and other costs and expenses incurred in creating and 23-18 organizing the district, including the reimbursement of costs and 23-19 expenses incurred by the City of Springtown and the Walnut Creek 23-20 Special Utility District. 23-21 (b) The district may succeed to and assume rights, 23-22 privileges, duties, and responsibilities, including contractual 23-23 obligations, of the City of Springtown and the Walnut Creek Special 23-24 Utility District relating to the creation of the district. 23-25 SECTION 4.03. TAX EXEMPTION. Accomplishment of the purposes 23-26 of the district benefit the people, property, and industry of the 23-27 state. The district is performing an essential public function 24-1 under the Texas Constitution by accomplishing the purposes of the 24-2 district and is not required to pay any tax or assessment on any 24-3 property or project owned, operated, leased, or controlled by the 24-4 district or any part of that property, and the bonds or other 24-5 obligations issued by the district under this Act and the transfer 24-6 and income from those bonds or other obligations, including the 24-7 profits made on the sale of the bonds, are free from taxation in 24-8 the state. 24-9 ARTICLE 5. BONDS 24-10 SECTION 5.01. ISSUANCE OF BONDS. (a) The district may 24-11 issue bonds to provide district funds to carry out the purposes and 24-12 exercise the powers of the district. 24-13 (b) The district may issue revenue bonds, notes, revenue 24-14 anticipation notes, short-term obligations, refunding bonds, or 24-15 other obligations without holding an election and on terms that the 24-16 board determines to be appropriate. 24-17 SECTION 5.02. PAYMENT AND SECURITY. (a) Obligations issued 24-18 under Section 5.01 of this article: 24-19 (1) may be made payable from all or part of the 24-20 revenues of the district derived from any lawful source, including 24-21 revenues derived from a contract with a customer or other user of 24-22 facilities owned or operated by the district or from the ownership 24-23 and operation of any waterworks system, wastewater system, sewer 24-24 system, solid waste disposal system, or nonhazardous liquid waste 24-25 system, or a combination of those systems; and 24-26 (2) may be paid from and secured by liens on the 24-27 pledges of all or part of the revenue, income, or receipts derived 25-1 from the district's ownership, operation, lease, or sale of the 25-2 property, buildings, structures, or facilities, including the 25-3 proceeds or revenues from contracts with any person, firm, 25-4 corporation, municipality, public agency, or other political 25-5 subdivision or entity. 25-6 (b) Bonds and other obligations of the district may be 25-7 additionally secured by mortgages or deeds of trust on real 25-8 property owned or to be acquired by the district and by chattel 25-9 mortgages or liens on any personal property appurtenant to that 25-10 real property. The board may authorize the execution of trust 25-11 indentures, mortgages, deeds of trust, or other forms of 25-12 encumbrances. The district may also pledge to the payment of the 25-13 obligations all or part of a grant, donation, revenue, or income 25-14 received or to be received from the United States or any public or 25-15 private source. 25-16 (c) The district may pledge all or part of the district's 25-17 revenue, income, or receipts from fees, rentals, rates, charges, or 25-18 contract proceeds or payments to the payment of the district's 25-19 bonds or other obligations, including the payment of principal, 25-20 interest, and any other amounts required or permitted relating to 25-21 the bonds or other obligations. The pledged fees, rentals, rates, 25-22 charges, proceeds, or payments shall be established and collected 25-23 in amounts sufficient, together with any other pledged resources, 25-24 to provide for the payment of expenses relating to the bonds or 25-25 other obligations and for operation and maintenance and other 25-26 expenses relating to those facilities. 25-27 (d) For purposes of Subsections (a) and (c) of this section, 26-1 payments and revenues that are pledged for the benefit of the 26-2 district under Sections 3.13(a) and (b) of Article 3 of this Act 26-3 are revenues of the district. 26-4 SECTION 5.03. TERMS AND CONDITIONS. Bonds and other 26-5 obligations of the district: 26-6 (1) may mature serially or otherwise, except that the 26-7 term of the bonds or other obligations may not exceed 40 years from 26-8 the date of issuance; 26-9 (2) may provide for the subsequent issuance of 26-10 additional parity obligations or subordinate lien obligations under 26-11 terms provided in the resolution that authorized the issuance of 26-12 the bond or other obligation; 26-13 (3) shall be executed and may be made redeemable 26-14 before maturity, issued in the form, denominations, and manner, and 26-15 under the terms, conditions, and detail, and sold in the manner, at 26-16 the price, and under the terms provided by the resolution that 26-17 authorized the issuance of the bond or other obligation; and 26-18 (4) shall bear an interest rate as provided by the 26-19 resolution that authorized the issuance of the bond or other 26-20 obligation. 26-21 SECTION 5.04. NEGOTIABLE INSTRUMENTS. Obligations under 26-22 this article are negotiable instruments for purposes of Chapter 8, 26-23 Business & Commerce Code. 26-24 SECTION 5.05. PROCEEDS. (a) If permitted in the resolution 26-25 that authorized the issuance of the bond or other obligation, the 26-26 proceeds from the sale of the bond or other obligation may be used: 26-27 (1) to pay the interest on the bond or other 27-1 obligation during the period of acquisition or construction of 27-2 facilities to be provided through the issuance of the bond or other 27-3 obligation; 27-4 (2) to pay the operating and maintenance expenses of 27-5 district facilities; 27-6 (3) to create a reserve fund for the payment of the 27-7 principal of and interest on the bond or other obligation; and 27-8 (4) in any other manner that is necessary, 27-9 appropriate, or convenient to accomplish the purposes of the 27-10 district. 27-11 (b) The proceeds from the sale of bonds or other obligations 27-12 may be placed on time deposit or invested as provided by the 27-13 resolution that authorized the issuance of the bond or other 27-14 obligation. 27-15 SECTION 5.06. MISCELLANEOUS. (a) The district is an issuer 27-16 as defined by Section 3.001, Article 3, Chapter 53, Acts of the 27-17 70th Legislature, 2nd Called Session, 1987 (Article 717k-8, 27-18 Vernon's Texas Civil Statutes). Bonds issued by the district under 27-19 this Act and the appropriate proceedings authorizing the issuance 27-20 of the bonds shall be submitted to the attorney general for 27-21 examination if required under Article 3, Chapter 53, Acts of the 27-22 70th Legislature, 2nd Called Session, 1987 (Article 717k-8, 27-23 Vernon's Texas Civil Statutes). If a bond issued by the district 27-24 contains a recital that the bond is secured by a pledge of revenue 27-25 derived from a contract, a copy of the contract and the proceedings 27-26 relating to the contract may also be submitted to the attorney 27-27 general. If the attorney general finds that the bonds submitted 28-1 for examination under this subsection are authorized and that the 28-2 contract was entered into in accordance with the law, the attorney 28-3 general shall approve the bonds and, if submitted, the contract and 28-4 the comptroller shall register the bonds. If bonds and the 28-5 contract are approved by the attorney general and registered by the 28-6 comptroller, the bonds and the contract are incontestable in any 28-7 court or other forum for any reason and are valid and binding 28-8 obligations as provided by the terms of the obligation. 28-9 (b) The district may issue bonds and other obligations as 28-10 provided by Chapter 656, Acts of the 68th Legislature, Regular 28-11 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and as 28-12 provided by the Bond Procedures Act of 1981 (Article 717k-6, 28-13 Vernon's Texas Civil Statutes). 28-14 ARTICLE 6. ADDING TERRITORY TO THE DISTRICT 28-15 SECTION 6.01. ADDITION OF MEMBER ENTITIES. (a) On receipt 28-16 of a petition submitted by the governing body of a local 28-17 government, other political subdivision, or private entity, 28-18 including a water supply corporation, the board may add a member 28-19 entity to the district as provided by this section. 28-20 (b) A petition must be submitted in the manner and form 28-21 required in the district bylaws. 28-22 (c) On receipt of a petition, the board shall give notice 28-23 and hold a hearing on the petition to determine if adding the 28-24 member entity to the district: 28-25 (1) will benefit the territory or service area within 28-26 the member entity; and 28-27 (2) is in the best interests of the district. 29-1 (d) If the board determines that the proposed member entity 29-2 should be added to the district, the board shall, subject to 29-3 Subsection (e) of this section, issue an order: 29-4 (1) adding the member entity and the territory or 29-5 service area of the member entity to the district; and 29-6 (2) making the member entity and the territory or 29-7 service area of the member entity subject to the privileges, 29-8 duties, assets, and financial obligations of the district in the 29-9 same manner as other member entities of the district. 29-10 (e) The board shall include in an order issued under 29-11 Subsection (d) of this section a requirement that the member entity 29-12 added to the district must reimburse the existing member entities 29-13 of the district, or directly reimburse the district, for the costs 29-14 incurred in creating and operating the district. Reimbursement 29-15 under this subsection must be an equitable pro rata share of the 29-16 costs paid by the existing member entities or the district. 29-17 SECTION 6.02. APPOINTMENT OF DIRECTORS BY NEW MEMBER ENTITY. 29-18 If the board issues an order under Section 6.01(d) of this article 29-19 adding a member entity to the district, the governing body of the 29-20 member entity shall appoint the appropriate number of directors to 29-21 the board as provided by Section 2.01(g) of Article 2 of this Act. 29-22 ARTICLE 7. MISCELLANEOUS PROVISIONS 29-23 SECTION 7.01. INITIAL DIRECTORS. (a) The governing bodies 29-24 of the City of Springtown and the Walnut Creek Special Utility 29-25 District shall, not later than the 30th day after the effective 29-26 date of this Act, appoint the appropriate number of initial 29-27 directors as required by Section 2.01(b) of Article 2 of this Act. 30-1 (b) The Parker County judge, or the person designated by the 30-2 Parker County judge, shall begin serving as an ex officio director 30-3 as provided by Section 2.01(d) of Article 2 of this Act on the 30-4 effective date of this Act. 30-5 SECTION 7.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 30-6 (a) The proper and legal notice of the intention to introduce this 30-7 Act, setting forth the general substance of this Act, has been 30-8 published as provided by law, and the notice and copy of this Act 30-9 have been furnished to all persons, agencies, officials, or 30-10 entities to which they are required to be furnished by the 30-11 constitution and other laws of this state, including the governor, 30-12 who has submitted the notice and Act to the Texas Natural Resource 30-13 Conservation Commission. 30-14 (b) The Texas Natural Resource Conservation Commission has 30-15 filed its recommendations relating to this Act with the governor, 30-16 lieutenant governor, and speaker of the house of representatives 30-17 within the required time. 30-18 (c) All requirements of the constitution and laws of this 30-19 state and the rules and procedures of the legislature with respect 30-20 to the notice, introduction, and passage of this Act are fulfilled 30-21 and accomplished. 30-22 SECTION 7.03. EMERGENCY. The importance of this legislation 30-23 and the crowded condition of the calendars in both houses create an 30-24 emergency and an imperative public necessity that the 30-25 constitutional rule requiring bills to be read on three several 30-26 days in each house be suspended, and this rule is hereby suspended, 30-27 and that this Act take effect and be in force from and after its 31-1 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3597 was passed by the House on May 13, 1997, by the following vote: Yeas 143, Nays 0, 2 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 3597 was passed by the Senate on May 26, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor