1-1     By:  Sibley, Harris                                   S.B. No. 1944

 1-2           (In the Senate - Filed May 1, 1997; May 2, 1997, read first

 1-3     time and referred to Committee on Natural Resources; May 9, 1997,

 1-4     reported favorably by the following vote:  Yeas 9, Nays 0;

 1-5     May 9, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation, administration, powers, duties,

 1-9     operation, and financing of the Parker County Utility District No.

1-10     1; granting the power of eminent domain and authorizing the

1-11     issuance of bonds.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13                    ARTICLE 1.  CREATION OF THE DISTRICT

1-14           SECTION 1.01.  CREATION.  (a)  A regional wastewater

1-15     district, to be known as the Parker County Utility District No. 1,

1-16     is created.  The district is a governmental agency and a body

1-17     politic and corporate.

1-18           (b)  The district is created under and is essential to

1-19     accomplish the purposes of Section 59, Article XVI, Texas

1-20     Constitution.

1-21           SECTION 1.02.  DEFINITIONS.  In this Act:

1-22                 (1)  "Board" means the board of directors of the

1-23     district.

1-24                 (2)  "Bond" means all interest-bearing obligations,

1-25     including bonds, notes, debentures, certificates, warrants,

1-26     securities, interim certificates or receipts, and other evidences

1-27     of debt issued by the district, whether general or special,

1-28     negotiable or nonnegotiable in form, in bearer or registered form,

1-29     temporary or permanent in form, or with or without interest

1-30     coupons.

1-31                 (3)  "Customer" means a wholesale user of wastewater or

1-32     other services provided by the district.

1-33                 (4)  "Director" means a member of the board.

1-34                 (5)  "District" means the Parker County Utility

1-35     District No. 1.

1-36                 (6)  "Local government" means a  municipality, county,

1-37     or entity created under Section 52, Article III, or Section 59,

1-38     Article XVI, Texas Constitution.

1-39                 (7)  "Member entity"  means a public entity or private

1-40     utility entity that:

1-41                       (A)  provides retail utility service or regulates

1-42     water, wastewater, sewage, or solid waste within the district; and

1-43                       (B)  enters into a contract with the district for

1-44     service.

1-45                 (8)  "Participant entity" means a public entity or

1-46     private utility entity that:

1-47                       (A)  provides utility service within the

1-48     boundaries of the entity; and

1-49                       (B)  enters into a contract with the district for

1-50     the construction of and payment for wastewater or other utility

1-51     service projects to be financed or provided by the district.

1-52                 (9)  "Person" means an individual, firm, association,

1-53     corporation, business trust, partnership, government or

1-54     governmental agency, joint venture, or other legal entity.

1-55                 (10)  "Service area"  means the territory within the

1-56     district and within the corporate limits or defined boundaries of

1-57     all member entities, participant entities, and customers of the

1-58     district, including the areas served by the member entities,

1-59     participant entities, and customers.

1-60           SECTION 1.03.  PURPOSES.  The district is created to

1-61     accomplish the following purposes:

1-62                 (1)  to purchase, own, hold, lease, or otherwise

1-63     acquire wastewater collection facilities;

1-64                 (2)  to build, operate, and maintain facilities to

 2-1     treat and transport wastewater;

 2-2                 (3)  to protect, preserve, and restore the purity and

 2-3     sanitary condition of water within the district; and

 2-4                 (4)  to provide other utilities within the district if

 2-5     the utilities are not otherwise provided.

 2-6           SECTION 1.04.  BOUNDARIES.  The district includes the

 2-7     territory contained within the following area:

 2-8     BEGINNING at a point in the centerline of Highway 51; said point

 2-9     being approximately 31,500 feet north along the centerline of

2-10     Highway 51 from the centerline intersection of Highway 199, said

2-11     point also being in the northern boundary line for the Walnut Creek

2-12     Special Utility District (WCSUD);

2-13     1.  THENCE North 90 East, 8200 Feet along the WCSUD boundary;

2-14     2.  THENCE South 00 East, 9800 Feet along the WCSUD boundary;

2-15     3.  THENCE North 90 East, 6100 Feet along the WCSUD boundary;

2-16     4.  THENCE South 00 East, 6700 Feet along the WCSUD boundary;

2-17     5.  THENCE North 90 East, 1300 Feet along the WCSUD boundary;

2-18     6.  THENCE South 00 East, 992.04 Feet along the WCSUD boundary to a

2-19     point of divergence;

2-20     7.  THENCE South 8922'10" East, 20491.62 Feet;

2-21     8.  THENCE South 0052'05" East, 26624.35 Feet;

2-22     9.  THENCE South 8929'51" West, 215.45 Feet;

2-23     10.  THENCE South 0030'09" East, 1930.51 Feet;

2-24     11.  THENCE South 8929'51" West, 4703.61 Feet;

2-25     12.  THENCE South 0030'09" East, 3134.46 Feet;

2-26     13.  THENCE South 8929'51" West, 1041.52 Feet;

2-27     14.  THENCE North 7455'09" West, 4870.79 Feet;

2-28     15.  THENCE North 6402'36" West, 122.68 Feet;

2-29     16.  THENCE South 0030'09" East, 2550.47 Feet;

2-30     17.  THENCE South 8929'51" West, 1262.75 Feet to a point in the

2-31     boundary of WCSUD;

2-32     18.  THENCE South 00 East, 4103.65 Feet along the WCSUD boundary;

2-33     19.  THENCE North 90 West, 45600 Feet along the WCSUD boundary;

2-34     20.  THENCE North 00 East, 12400 Feet along the WCSUD boundary;

2-35     21.  THENCE North 90 West, 14,200 Feet along the WCSUD boundary;

2-36     22.  THENCE North 00 East, 36500 Feet along the WCSUD boundary;

2-37     23.  THENCE North 90 East, 25500 Feet along the WCSUD boundary;

2-38     24.  THENCE North 00 East, 5900 Feet along the WCSUD boundary;

2-39     25.  THENCE North 90 East, 9775.84 Feet to the POINT OF BEGINNING

2-40     and containing 70,490 gross acres more or less.  Save and except

2-41     CCN areas numbered 10266, 10285, 12397 (except for dually

2-42     certificated portion), 11719 and 12427.

2-43           SECTION 1.05.  FINDINGS RELATING TO BOUNDARIES.  The

2-44     legislature finds that the boundaries and field notes of the

2-45     district form a closure.  A mistake in the field notes or in

2-46     copying the field notes in the legislative process does not affect

2-47     the organization, existence, or validity of the district or the

2-48     legality or operation of the district or its governing body.

2-49           SECTION 1.06.  FINDING OF BENEFIT.  All of the land and other

2-50     property included within the boundaries of the district will be

2-51     benefited by the improvements, works, and projects that are to be

2-52     accomplished by the district under the powers conferred by this Act

2-53     and under Section 59, Article XVI, Texas Constitution.

2-54           SECTION 1.07.  FINDING OF STATE BENEFIT.  The legislature

2-55     finds that creation of the district will benefit the state by:

2-56                 (1)  contributing to economic development and

2-57     diversification;

2-58                 (2)  decreasing the rate of unemployment and

2-59     underemployment;

2-60                 (3)  stimulating agricultural innovation;

2-61                 (4)  fostering enterprise growth based on agriculture;

2-62     and

2-63                 (5)  contributing to the development or expansion of

2-64     transportation and commerce.

2-65           SECTION 1.08.  POWERS.  (a)  Except as provided by this

2-66     section, the district has all of the rights, powers, privileges,

2-67     authority, functions, and duties provided by the general law of

2-68     this state, including Chapters 49, 54, and 65, Water Code, and

2-69     conferred by Section 59, Article XVI, Texas Constitution.  This Act

 3-1     prevails over any provision of general law that is in conflict or

 3-2     inconsistent with this Act.

 3-3           (b)  The district may not levy or collect ad valorem taxes.

 3-4           (c)  The rights, powers, privileges, authority, functions,

 3-5     and duties of the district are subject to the continuing right of

 3-6     supervision of the state to be exercised by and through the Texas

 3-7     Natural Resource Conservation Commission.  Except as provided by

 3-8     this Act or other state law, the district may exercise the rights,

 3-9     powers, privileges, authority, functions, and duties conferred by

3-10     this Act without having to obtain approval from the Texas Natural

3-11     Resource Conservation Commission.

3-12           SECTION 1.09.  CONFIRMATION ELECTION NOT REQUIRED.  Creation

3-13     of the district does not require a confirmation election.

3-14                    ARTICLE 2.  ADMINISTRATIVE PROVISIONS

3-15           SECTION 2.01.  APPOINTMENT OF DIRECTORS.  (a)  The district

3-16     is governed by a board of directors as provided by this section.

3-17           (b)  The governing bodies of the City of Springtown and the

3-18     Walnut Creek Special Utility District shall each appoint three

3-19     initial directors.

3-20           (c)  Initial directors serve until permanent directors

3-21     appointed under Subsection (e) of this section take office.

3-22           (d)  The Parker County judge, or a person designated by the

3-23     Parker County judge, serves as an ex officio director.  A person

3-24     who serves as an ex officio director under this subsection may vote

3-25     on any matter considered by the board.

3-26           (e)  Permanent directors shall be appointed as provided by

3-27     Subsection (f) of this section by the governing bodies of the

3-28     member entities of the district not earlier than April 1 or later

3-29     than April 30 of 1998.

3-30           (f)  Each member entity shall appoint:

3-31                 (1)  one director if the number of member entities of

3-32     the district is at least six;

3-33                 (2)  two directors if the number of member entities of

3-34     the district is at least three, but less than six;

3-35                 (3)  three directors if there are two member entities

3-36     of the district; or

3-37                 (4)  six directors if there is one member entity of the

3-38     district.

3-39           (g)  Not earlier than April 1 or later than April 30 of each

3-40     year after 1998, the appropriate number of permanent directors, if

3-41     any, shall be appointed to the board as provided by Subsection (f)

3-42     of this section.

3-43           (h)  Permanent directors serve staggered four-year terms,

3-44     unless required by the board to serve a term of less than four

3-45     years under Subsection (j) of this section.

3-46           (i)  Permanent directors appointed under Subsections (e) and

3-47     (g) of this section serve beginning May 1 of the year in which the

3-48     director is appointed and until the director's successor has

3-49     qualified.

3-50           (j)  For purposes of staggering the terms of office of

3-51     directors as required by Subsection (h) of this section, the board

3-52     shall develop a procedure to determine which directors appointed

3-53     under Subsections (e) and (g) of this section serve four-year terms

3-54     and which directors serve terms of less than four years.

3-55           (k)  A vacancy on the board shall be filled by appointment

3-56     made by the governing body of the appropriate member entity.  An

3-57     appointment under this subsection may be made any time after the

3-58     vacancy occurs.  A member entity that makes an appointment under

3-59     this subsection shall provide notice of the appointment to the

3-60     board not later than six hours before the first board meeting

3-61     following the appointment.  An appointment made under this

3-62     subsection is effective on the date notice is received by the

3-63     board.  If notice of an appointment is not provided as required by

3-64     this subsection, the appointment is not effective until after the

3-65     first board meeting following the appointment.

3-66           (l)  The appointment of a director is not valid unless the

3-67     appointment is made as provided by this section.

3-68           (m)  A participant entity or customer may not appoint a

3-69     director under this section.

 4-1           SECTION 2.02.  REMOVAL OF DIRECTORS.  A director may be

 4-2     removed for any reason:

 4-3                 (1)  by the governing body of the member entity that

 4-4     appointed the director; or

 4-5                 (2)  if three-quarters of the directors vote to remove

 4-6     the director.

 4-7           SECTION 2.03.  DIRECTOR QUALIFICATIONS.  A person is

 4-8     qualified to serve as a director if the person:

 4-9                 (1)  is at least 18 years of age;

4-10                 (2)  is a qualified voter who resides within the

4-11     boundaries of the district;

4-12                 (3)  qualifies to serve as a director by taking the

4-13     oath of office;

4-14                 (4)  except as otherwise provided by this section, is

4-15     eligible to serve as a director under Subchapter C, Chapter 49,

4-16     Water Code; and

4-17                 (5)  verifies compliance with the requirements of this

4-18     section.

4-19           SECTION 2.04.  DIRECTOR VOTING.  A director, including the

4-20     chairman elected under Section 2.09 of this article, may vote on

4-21     any matter considered by the board, including a matter authorizing

4-22     a financial commitment to a capital project.  This section applies

4-23     to a director notwithstanding that the director was appointed by a

4-24     member entity of the district that is not participating in the

4-25     project being considered by the board.

4-26           SECTION 2.05.  DIRECTOR COMPENSATION.  (a)  Except as

4-27     provided by Subsection (b) of this section, a director may not

4-28     receive compensation for serving on the board.

4-29           (b)  A director may receive reimbursement for travel or other

4-30     expenses reasonably incurred by the director while acting on behalf

4-31     of the district.  The board may adopt reasonable policies governing

4-32     the reimbursement of director expenses under this subsection,

4-33     including a requirement that the director provide written

4-34     verification of expenses.

4-35           SECTION 2.06.  EX OFFICIO DIRECTORS.  The board may appoint

4-36     or elect ex officio directors of the district and provide for the

4-37     powers and duties of such directors in the bylaws, rules, or

4-38     regulations of the district.

4-39           SECTION 2.07.  EXCLUSIVE AUTHORITY OF BOARD.  The board has

4-40     the exclusive authority to manage the district.

4-41           SECTION 2.08.  POWERS AND DUTIES OF THE BOARD.  (a)  The

4-42     board shall:

4-43                 (1)  adopt a seal for the district;

4-44                 (2)  adopt bylaws to govern matters of the district;

4-45     and

4-46                 (3)  hold regular and, if necessary, special and

4-47     emergency board meetings.

4-48           (b)  The board may amend bylaws adopted under Subdivision (2)

4-49     of Subsection (a) of this section.

4-50           (c)  The board shall hold board meetings at a time and place

4-51     specified in the district bylaws.

4-52           SECTION 2.09.  ELECTION OF OFFICERS.  (a)  At the first board

4-53     meeting following the appointment of initial directors under

4-54     Subsection (b) of Section 2.01 of this article, the board shall

4-55     elect from the initial directors primary officers for the district,

4-56     including a chairman, vice chairman, secretary, and treasurer, and

4-57     any other officer that the board determines is necessary.

4-58           (b)  At the first board meeting following the appointment of

4-59     permanent directors under Subsection (e) of Section 2.01 of this

4-60     article, the board shall elect from the permanent directors new

4-61     officers for the district.

4-62           (c)  Each subsequent year at the first board meeting

4-63     following the appointment of the appropriate number of directors

4-64     under Subsection (g) of Section 2.01 of this article, the board

4-65     shall elect from the directors new officers for the district.

4-66           (d)  Officers serve until the election of new officers under

4-67     this section.

4-68           SECTION 2.10.  POWERS AND DUTIES OF OFFICERS.  (a)  The

4-69     chairman of the board elected under Section 2.09 of this article is

 5-1     the chief executive officer of the district and the presiding

 5-2     officer of the board.

 5-3           (b)  The vice chairman of the board elected under Section

 5-4     2.09 of this article may perform the duties and exercise the powers

 5-5     of the chairman if the chairman is absent or fails, refuses, or is

 5-6     unable to act.

 5-7           (c)  The secretary of the board elected under Section 2.09 of

 5-8     this article or an assistant secretary:

 5-9                 (1)  shall keep a record of the minutes of the board

5-10     meetings;

5-11                 (2)  shall maintain the official records of the

5-12     district; and

5-13                 (3)  may certify the accuracy and authenticity of any

5-14     actions, proceedings, minutes, or records of the board or the

5-15     district.

5-16           (d)  The board may provide for additional powers and duties

5-17     of officers elected under Section 2.09 of this article in the

5-18     district bylaws.

5-19           SECTION 2.11.  DISTRICT EMPLOYEES.  The board may appoint and

5-20     employ any person, firm, corporation, partnership, or other entity

5-21     that the board determines is necessary to conduct the affairs of

5-22     the district, including a general manager, engineer, attorney,

5-23     financial advisor, accountant, or other consultant.

5-24           SECTION 2.12.  CONFLICT OF INTEREST.  Directors and officers

5-25     of the district are subject to Chapter 572, Government Code.

5-26           SECTION 2.13.  OPEN RECORDS.  Chapter 551, Government Code,

5-27     applies to the minutes, orders, contracts and related instruments,

5-28     books, records, audits, and other documents of the district.

5-29           SECTION 2.14.  DISTRICT BUSINESS.  (a)  A quorum of the

5-30     directors of the district is required to be present at a board

5-31     meeting for the board to conduct district business.  The board

5-32     shall specify in the district bylaws the number of directors that

5-33     constitute a quorum, except that a quorum may not be less than a

5-34     majority of the directors serving on the board.

5-35           (b)  The board shall specify in the district bylaws the

5-36     number of votes necessary to approve a matter considered by the

5-37     board, except that the number of votes specified may not be less

5-38     than a majority of the directors present at the  meeting in which

5-39     the matter is being considered.

5-40           SECTION 2.15.  CUSTOMER ADVISORY COUNCIL.  (a)  The board may

5-41     establish a customer advisory council as provided by this section.

5-42           (b)  A customer advisory council established under this

5-43     section shall consist of one representative of each customer of the

5-44     district.

5-45           (c)  A representative serving on a customer advisory council

5-46     established under this section:

5-47                 (1)  has the powers and duties provided in the bylaws,

5-48     rules, and regulations of the district; and

5-49                 (2)  may not vote on any matter considered by the

5-50     board.

5-51           (d)  A customer advisory council established under this

5-52     section may be abolished by the board.

5-53           SECTION 2.16.  ADMINISTRATION AND PLANNING COSTS FEE.  The

5-54     district may charge each member entity an annual pro rata fee to

5-55     pay for administration and planning costs incurred by the district

5-56     that are unrelated to capital projects financed by the district.  A

5-57     fee charged a member entity under this section may not exceed $2

5-58     per capita population of the member entity, unless the board and at

5-59     least 75 percent of the member entities of the district that

5-60     together have at least 75 percent of the population of the district

5-61     agree to a different fee.

5-62           SECTION 2.17.  EXPANSION OF DISTRICT BOUNDARIES.  On request

5-63     by a member entity, the boundaries of the district may be expanded

5-64     to include additional or the remaining territory of the member

5-65     entity if:

5-66                 (1)  the boundaries of the member entity are contiguous

5-67     to the boundaries of the district; and

5-68                 (2)  the requested expansion is approved by a

5-69     three-quarters majority vote of the directors of the district.

 6-1           SECTION 2.18.  RULES AND REGULATIONS.  The board may adopt

 6-2     and enforce reasonable rules and regulations to exercise the powers

 6-3     and perform the duties of the district as provided by this Act.

 6-4                   ARTICLE 3.  RIGHTS, POWERS, AND DUTIES

 6-5           SECTION 3.01.  RIGHTS IN SERVICE AREA.  (a)  The district may

 6-6     provide wastewater collection, treatment, or service within the

 6-7     district.

 6-8           (b)  The district may own, operate, and provide other

 6-9     necessary utilities and services within the district, including raw

6-10     water, potable water, water distribution and treatment, solid waste

6-11     collection and disposal, fire, police, and ambulance services, if

6-12     the right to own, operate, or provide the utility or service has

6-13     not been conveyed to another entity, unless the entity to which the

6-14     right has been conveyed agrees to sell, cede, or otherwise convey

6-15     to the district the right to own, operate, or provide the utility

6-16     or service.

6-17           (c)  Subsection (b) of this section does not require the

6-18     district to own, operate, or provide other necessary utilities or

6-19     services within the district, unless the district is required to

6-20     own, operate, or provide the utility or service under a permit,

6-21     certificate, or license issued by the state.

6-22           SECTION 3.02.  RIGHTS OF OTHER ENTITIES PROTECTED.

6-23     (a)  Except as provided by Subsection (b) of this section, a

6-24     customer or prospective customer of the district is not required

6-25     under this Act to secure wastewater or other utility service from

6-26     the district, unless the customer or prospective customer enters

6-27     into a contract with the district for that purpose.

6-28           (b)  A customer or prospective customer is required under

6-29     this Act to secure wastewater or other utility service from the

6-30     district if:

6-31                 (1)  the customer or prospective customer is not

6-32     receiving the service from another source; and

6-33                 (2)  the district provides the service or determines

6-34     that the district will make the service available to the customer

6-35     or prospective customer.

6-36           (c)  If a customer enters into a contract with the district

6-37     to secure wastewater or other utility service from the district, a

6-38     user of the service under the contract must connect to the

6-39     district's service system if:

6-40                 (1)  the user is located within the boundaries of the

6-41     customer; and

6-42                 (2)  the district's system is available for connection

6-43     at or near the property line of the user.

6-44           (d)  A contract under this section may provide that the

6-45     district may:

6-46                 (1)  require the customer to terminate service provided

6-47     to a user who fails or refuses to pay for that service after

6-48     providing notice as required by law;

6-49                 (2)  terminate service provided to a customer or user

6-50     who fails or refuses to pay for that service after providing notice

6-51     as required by law; and

6-52                 (3)  terminate other utility services provided to a

6-53     customer or user if the customer or user fails or refuses to pay

6-54     for any service provided by the district after providing notice as

6-55     required by law.

6-56           (e)  This Act does not alter any existing permit, contract,

6-57     or other obligation, or impair the right of any entity to own,

6-58     operate, maintain, or otherwise use, provide, or control water,

6-59     wastewater, solid waste, or liquid waste under the governing law of

6-60     the entity.

6-61           SECTION 3.03.  PURCHASE, CONSTRUCT, OR ACQUIRE WORKS AND

6-62     FACILITIES.  The district may plan, lay out, purchase, construct,

6-63     acquire, own, operate, maintain, repair, or improve, or contract

6-64     for, within or outside the boundaries of the district, any works,

6-65     improvements, facilities, plants, equipment, and appliances,

6-66     including any administrative properties and facilities, any

6-67     permits, franchises, licenses, or contract or property rights, and

6-68     any levees, drains, waterways, lakes, reservoirs, channels,

6-69     conduits, sewers, dams, storm water detention facilities, treatment

 7-1     plants, or other similar facilities and improvements, whether for

 7-2     municipal, industrial, agricultural, flood control, or related

 7-3     purposes, that are necessary, helpful, or incidental to the

 7-4     exercise of any right, power, privilege, authority, or function

 7-5     provided by this Act.

 7-6           SECTION 3.04.  FINANCING CAPITAL IMPROVEMENTS.  The district

 7-7     is a political subdivision for purposes of Chapter 395, Local

 7-8     Government Code.

 7-9           SECTION 3.05.  ADDITIONAL POWERS.  The district may:

7-10                 (1)  provide for:

7-11                       (A)  the collection, construction, improvement,

7-12     maintenance, and operation of wholesale wastewater and water

7-13     systems and treatment works necessary to provide wholesale service

7-14     to customers of the district; and

7-15                       (B)  the acquisition, construction, improvement,

7-16     and maintenance of water supply, reservoir, or interest in water

7-17     supply or reservoir, necessary to exercise and fulfill the powers

7-18     and duties of the district;

7-19                 (2)  supply water for municipal, domestic, and

7-20     industrial or other beneficial uses or controls;

7-21                 (3)  collect, treat, process, dispose of, and control

7-22     all domestic or industrial wastes, whether in fluid, solid, or

7-23     composite state;

7-24                 (4)  gather, conduct, divert, control, and treat local

7-25     storm water or local harmful excesses of water within the

7-26     boundaries of the district; and

7-27                 (5)  irrigate and alter land elevations within the

7-28     boundaries of the district as needed.

7-29           SECTION 3.06.  EMINENT DOMAIN.  (a)  The district may acquire

7-30     by purchase or eminent domain land, an easement, a right-of-way, or

7-31     other property or improvement within or outside the boundaries of

7-32     the district if necessary or appropriate in exercising the powers

7-33     and performing the functions of the district.

7-34           (b)  The power of eminent domain may be exercised by the

7-35     district under Subsection (a) of this section as provided by state

7-36     law, including Chapter 21, Property Code, except that the district

7-37     is not required to comply with the requirements of Subsection (a),

7-38     Section 21.021, Property Code, during the pendency of the subject

7-39     litigation.

7-40           (c)  The district is not required in a condemnation

7-41     proceeding brought by the district:

7-42                 (1)  to pay in advance or give bond or other security

7-43     for costs;

7-44                 (2)  to give bond for the issuance of a temporary

7-45     restraining order or a temporary injunction; or

7-46                 (3)  to give bond for costs or supersedeas on an appeal

7-47     or writ of error.

7-48           (d)  The district may not exercise the power of eminent

7-49     domain to acquire:

7-50                 (1)  property located in the existing corporate limits

7-51     of a municipality that is located in whole or in part within the

7-52     district unless the governing body of the municipality in which the

7-53     property is located consents by resolution to the acquisition of

7-54     the property;

7-55                 (2)  property located outside the boundaries of the

7-56     district to be used as a water supply reservoir unless the county

7-57     in which the reservoir is to be located consents;

7-58                 (3)  property owned by a county, a municipality, an

7-59     entity created by special act of the legislature under Section 52,

7-60     Article III, or Section 59, Article XVI, Texas Constitution, a

7-61     political subdivision of the state, or an agency or instrumentality

7-62     of a county or municipality; or

7-63                 (4)  a waterworks system or a wastewater system owned

7-64     by a municipality, an entity created by special act of the

7-65     legislature under Section 52, Article III, or Section 59, Article

7-66     XVI, Texas Constitution, a political subdivision of the state, a

7-67     private party, or a nonprofit corporation.

7-68           (e)  If the district exercises the power of eminent domain

7-69     and requires relocating, raising, lowering, rerouting, changing the

 8-1     grade, or altering the construction of any railroad, highway, or

 8-2     pipeline or electric transmission and electric distribution,

 8-3     telegraph, or telephone lines, conduits, poles, or facilities, the

 8-4     district shall pay the cost of relocating, raising, lowering,

 8-5     rerouting, changing the grade, or altering the construction that

 8-6     equals the comparable replacement cost without enhancement of

 8-7     facilities minus the net salvage value derived from the old

 8-8     facility.

 8-9           SECTION 3.07.  SERVICE OUTSIDE DISTRICT.  The district may

8-10     provide services outside the service area of the district as

8-11     provided by state law.

8-12           SECTION 3.08.  DISPOSAL SYSTEMS.  (a)  The district may

8-13     establish, acquire, operate, and maintain a regional solid waste

8-14     disposal system and a nonhazardous liquid waste disposal system.

8-15           (b)  If the district establishes a disposal system under

8-16     Subsection (a)  of this section, the district shall provide

8-17     services from the system to:

8-18                 (1)  users as determined by the board if the services

8-19     are provided within the service area of the district; and

8-20                 (2)  customers if the services are provided outside the

8-21     service area of the district.

8-22           SECTION 3.09.  RULES RELATING TO WATER QUALITY.  (a)  The

8-23     district may adopt and enforce rules relating to  protection of the

8-24     quality of water flowing to or from the areas in or surrounding the

8-25     lakes, reservoirs, and other sources of water supply owned,

8-26     operated, or controlled by the district.

8-27           (b)  The rules adopted by the district under Subsection

8-28     (a)  of this section must:

8-29                 (1)  relate to:

8-30                       (A)  the prevention of waste or unauthorized use

8-31     of water controlled by the district; or

8-32                       (B)  the regulation of privileges on land, a

8-33     reservoir, or an easement owned or controlled by the district; and

8-34                 (2)  be consistent with rules and regulations of the

8-35     state.

8-36           SECTION 3.10.  RATES, FEES, CHARGES, AND RENTALS.  (a)  The

8-37     district may adopt, enforce, and collect all assessed charges,

8-38     fees, rates, and rentals that are necessary to provide services and

8-39     facilities to customers and users of the district.  Rates, fees,

8-40     and charges assessed under this section may vary according to

8-41     customer class, project, or service area to reflect different costs

8-42     of providing service.

8-43           (b)  The district may require a customer to obtain a deposit

8-44     from a user for services or facilities provided by the district.  A

8-45     deposit under this subsection may bear interest.

8-46           (c)  If the district issues revenue bonds or other

8-47     obligations payable wholly from revenue, the board shall establish

8-48     and revise rates of compensation for water sold and wastewater or

8-49     other services rendered by the district that are sufficient:

8-50                 (1)  to pay operating and maintenance expenses of

8-51     district facilities;

8-52                 (2)  to pay the issued bonds as the bonds mature and

8-53     the interest that accrues on the bonds;

8-54                 (3)  to maintain the district's fund reserve; and

8-55                 (4)  to maintain other funds of the district provided

8-56     by the resolution that authorized the issuance of the bonds.

8-57           (d)  A local government, water supply corporation, or other

8-58     entity that enters into a contract with the district may:

8-59                 (1)  establish, charge, and collect fees, rates,

8-60     charges, rentals, or other amounts for services or facilities

8-61     provided under the contract; and

8-62                 (2)  pledge amounts that are sufficient to make the

8-63     required payments under the contract.

8-64           (e)  The district may discontinue providing a service or

8-65     facility to prevent an abuse or to enforce the payment of an unpaid

8-66     charge, fee, or rental due and payable to the district.

8-67           SECTION 3.11.  REGULATORY POWER OF MUNICIPALITIES.  The

8-68     district and the land within the district are subject to any

8-69     ordinances, codes, resolutions, rules, or regulations of a

 9-1     municipality, including platting and zoning requirements, that has

 9-2     jurisdiction over territory within the district.

 9-3           SECTION 3.12.  GENERAL CONTRACTING AUTHORITY.  (a)  The

 9-4     district may, if necessary to exercise the powers and accomplish

 9-5     the purposes of the district, enter into a contract with the United

 9-6     States, any agency of the United States, a municipality, a county,

 9-7     a water supply corporation, an entity created under Section 52,

 9-8     Article III, or Section 59, Article XVI, Texas Constitution, or

 9-9     other public or private entity.

9-10           (b)  The district may enter into a contract for the

9-11     acquisition, purchase, rental, lease, or operation of wastewater or

9-12     water facilities owned or operated by the party contracting with

9-13     the district.

9-14           (c)  The district may acquire water appropriation or other

9-15     necessary permits from the state or permit owners.

9-16           (d)  A contract that requires payment of money by the

9-17     district may be satisfied from any general or specific source of

9-18     district funds as determined by the board.

9-19           SECTION 3.13.  AUTHORITY TO CONTRACT WITH DISTRICT.  (a)  A

9-20     municipality, a county, a public agency, a political subdivision of

9-21     the state, an entity created under Section 52, Article III, or

9-22     Section 59, Article XVI, Texas Constitution, or a water supply

9-23     corporation may enter into a contract with the district if the

9-24     entity is conducting business in whole or part within the district.

9-25           (b)  The governing body of an entity that enters into a

9-26     contract under this section with the district may pledge to the

9-27     payment of the contract any source of revenue that is available to

9-28     the governing body, including revenue derived from levying and

9-29     collecting ad valorem taxes.

9-30           (c)  If an entity under this section pledges to the payment

9-31     of a contract funds derived from the entity's water system,

9-32     wastewater system, or combined water and wastewater system, the

9-33     payments constitute an operating expense of that system.

9-34           SECTION 3.14.  DEPOSITORY.  (a)  The board, by order or

9-35     resolution, shall designate one or more banks inside or outside the

9-36     boundaries of the district to serve as depository for the funds of

9-37     the district.

9-38           (b)  Except as provided by this Act, district funds shall be

9-39     deposited in a depository bank designated under Subsection (a) of

9-40     this section.

9-41           (c)  The board may invest district funds:

9-42                 (1)  in the same manner as provided for the investment

9-43     of county funds; and

9-44                 (2)  as provided by the Public Funds Investment Act,

9-45     Chapter 2256, Government Code.

9-46           (d)  District funds shall be secured in the same manner as

9-47     provided for the deposit of public funds under the Public Funds

9-48     Collateral Act, Chapter 2257, Government Code.

9-49           SECTION 3.15.  JOINT AUTHORITY.  For purposes of

9-50     accomplishing the objectives and exercising the powers of the

9-51     district, the district may:

9-52                 (1)  enter into an agreement with a local government

9-53     under the Interlocal Cooperation Act, Chapter 791, Government Code;

9-54     and

9-55                 (2)  enter into a joint agreement or contract with a

9-56     water supply corporation, a municipality, an entity created under

9-57     Section 52, Article III, or Section 59, Article XVI, Texas

9-58     Constitution, a county, a political subdivision of the state, the

9-59     state, or other private or public entity.

9-60                    ARTICLE 4.  GENERAL FISCAL PROVISIONS

9-61           SECTION 4.01.  AUDITS.  All funds and accounts of the

9-62     district shall be audited by an independent auditor.  A copy of an

9-63     audit required under this section shall be maintained in the

9-64     official records of the district.

9-65           SECTION 4.02.  CREATION EXPENSES.  (a)  The district may pay

9-66     the costs and expenses incurred in obtaining the Walnut Basin

9-67     Regional Wastewater Study and, if conducted, other feasibility

9-68     studies and other costs and expenses incurred in creating and

9-69     organizing the district, including the reimbursement of costs and

 10-1    expenses incurred by the City of Springtown and the Walnut Creek

 10-2    Special Utility District.

 10-3          (b)  The district may succeed to and assume rights,

 10-4    privileges, duties, and responsibilities, including contractual

 10-5    obligations, of the City of Springtown and the Walnut Creek Special

 10-6    Utility District relating to the creation of the district.

 10-7          SECTION 4.03.  TAX EXEMPTION.  Accomplishment of the purposes

 10-8    of the district benefit the people, property, and industry of the

 10-9    state.  The district is performing an essential public function

10-10    under the Texas Constitution by accomplishing the purposes of the

10-11    district and is not required to pay any tax or assessment on any

10-12    property or project owned, operated, leased, or controlled by the

10-13    district or any part of that property, and the bonds or other

10-14    obligations issued by the district under this Act and the transfer

10-15    and income from those bonds or other obligations, including the

10-16    profits made on the sale of the bonds, are free from taxation in

10-17    the state.

10-18                             ARTICLE 5.  BONDS

10-19          SECTION 5.01.  ISSUANCE OF BONDS.  (a)  The district may

10-20    issue bonds to provide district funds to carry out the purposes and

10-21    exercise the powers of the district.

10-22          (b)  The district may issue revenue bonds, notes, revenue

10-23    anticipation notes, short-term obligations, refunding bonds, or

10-24    other obligations without holding an election and on terms that the

10-25    board determines to be appropriate.

10-26          SECTION 5.02.  PAYMENT AND SECURITY.  (a)  Obligations issued

10-27    under Section 5.01 of this article:

10-28                (1)  may be made payable from all or part of the

10-29    revenues of the district derived from any lawful source, including

10-30    revenues derived from a contract with a customer or other user of

10-31    facilities owned or operated by the district or from the ownership

10-32    and operation of any waterworks system, wastewater system, sewer

10-33    system, solid waste disposal system, or nonhazardous liquid waste

10-34    system, or a combination of those systems; and

10-35                (2)  may be paid from and secured by liens on the

10-36    pledges of all or part of the revenue, income, or receipts derived

10-37    from the district's ownership, operation, lease, or sale of the

10-38    property, buildings, structures, or facilities, including the

10-39    proceeds or revenues from contracts with any person, firm,

10-40    corporation, municipality, public agency, or other political

10-41    subdivision or entity.

10-42          (b)  Bonds and other obligations of the district may be

10-43    additionally secured by mortgages or deeds of trust on real

10-44    property owned or to be acquired by the district and by chattel

10-45    mortgages or liens on any personal property appurtenant to that

10-46    real property.  The board may authorize the execution of trust

10-47    indentures, mortgages, deeds of trust, or other forms of

10-48    encumbrances.  The district may also pledge to the payment of the

10-49    obligations all or part of a grant, donation, revenue, or income

10-50    received or to be received from the United States or any public or

10-51    private source.

10-52          (c)  The district may pledge all or part of the district's

10-53    revenue, income, or receipts from fees, rentals, rates, charges, or

10-54    contract proceeds or payments to the payment of the district's

10-55    bonds or other obligations, including the payment of principal,

10-56    interest, and any other amounts required or permitted relating to

10-57    the bonds or other obligations.  The pledged fees, rentals, rates,

10-58    charges, proceeds, or payments shall be established and collected

10-59    in amounts sufficient, together with any other pledged resources,

10-60    to provide for the payment of expenses relating to the bonds or

10-61    other obligations and for operation and maintenance and other

10-62    expenses relating to those facilities.

10-63          (d)  For purposes of Subsections (a) and (c) of this section,

10-64    payments and revenues that are pledged for the benefit of the

10-65    district under Subsections (a) and (b) of Section 3.13 of this Act

10-66    are revenues of the district.

10-67          SECTION 5.03.  TERMS AND CONDITIONS.  Bonds and other

10-68    obligations of the district:

10-69                (1)  may mature serially or otherwise, except that the

 11-1    term of the bonds or other obligations may not exceed 40 years from

 11-2    the date of issuance;

 11-3                (2)  may provide for the subsequent issuance of

 11-4    additional parity obligations or subordinate lien obligations under

 11-5    terms provided in the resolution that authorized the issuance of

 11-6    the bond or other obligation;

 11-7                (3)  shall be executed and may be made redeemable

 11-8    before maturity, issued in the form, denominations, and manner, and

 11-9    under the terms, conditions, and detail, and sold in the manner, at

11-10    the price, and under the terms provided by the resolution that

11-11    authorized the issuance of the bond or other obligation; and

11-12                (4)  shall bear an interest rate as provided by the

11-13    resolution that authorized the issuance of the bond or other

11-14    obligation.

11-15          SECTION 5.04.  NEGOTIABLE INSTRUMENTS.  Obligations under

11-16    this article are negotiable instruments for purposes of Chapter 8,

11-17    Business & Commerce Code.

11-18          SECTION 5.05.  PROCEEDS.  (a)  If permitted in the resolution

11-19    that authorized the issuance of the bond or other obligation, the

11-20    proceeds from the sale of the bond or other obligation may be used:

11-21                (1)  to pay the interest on the bond or other

11-22    obligation during the period of acquisition or construction of

11-23    facilities to be provided through the issuance of the bond or other

11-24    obligation;

11-25                (2)  to pay the operating and maintenance expenses of

11-26    district facilities;

11-27                (3)  to create a reserve fund for the payment of the

11-28    principal of and interest on the bond or other obligation; and

11-29                (4)  in any other manner that is necessary,

11-30    appropriate, or convenient to accomplish the purposes of the

11-31    district.

11-32          (b)  The proceeds from the sale of bonds or other obligations

11-33    may be placed on time deposit or invested as provided by the

11-34    resolution that authorized the issuance of the bond or other

11-35    obligation.

11-36          SECTION 5.06.  MISCELLANEOUS.  (a)  The district is an issuer

11-37    as defined by Section 3.001, Chapter 53, Acts of the 70th

11-38    Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's

11-39    Texas Civil Statutes).  Bonds issued by the district under this Act

11-40    and the appropriate proceedings authorizing the issuance of the

11-41    bonds shall be submitted to the attorney general for examination if

11-42    required under Article 3, Chapter 53, Acts of the 70th Legislature,

11-43    2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

11-44    Statutes).  If a bond issued by the district contains a recital

11-45    that the bond is secured by a pledge of revenue derived from a

11-46    contract, a copy of the contract and the proceedings relating to

11-47    the contract may also be submitted to the attorney general.  If the

11-48    attorney general finds that the bonds submitted for examination

11-49    under this subsection are authorized and that the contract was

11-50    entered into in accordance with the law, the attorney general shall

11-51    approve the bonds and, if submitted, the contract and the

11-52    comptroller shall register the bonds.  If bonds and the contract

11-53    are approved by the attorney general and registered by the

11-54    comptroller, the bonds and the contract are incontestable in any

11-55    court or other forum for any reason and are valid and binding

11-56    obligations as provided by the terms of the obligation.

11-57          (b)  The district may issue bonds and other obligations as

11-58    provided by Chapter 656, Acts of the 68th Legislature, Regular

11-59    Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and as

11-60    provided by the Bond Procedures Act of 1981 (Article 717k-6,

11-61    Vernon's Texas Civil Statutes).

11-62               ARTICLE 6.  ADDING TERRITORY TO THE DISTRICT

11-63          SECTION 6.01.  ADDITION OF MEMBER ENTITIES.  (a)  On receipt

11-64    of a petition submitted by the governing body of a local

11-65    government, other political subdivision, or private entity,

11-66    including a water supply corporation, the board may add a member

11-67    entity to the district as provided by this section.

11-68          (b)  A petition must be submitted in the manner and form

11-69    required in the district bylaws.

 12-1          (c)  On receipt of a petition, the board shall give notice

 12-2    and hold a hearing on the petition to determine if adding the

 12-3    member entity to the district:

 12-4                (1)  will benefit the territory or service area within

 12-5    the member entity; and

 12-6                (2)  is in the best interests of the district.

 12-7          (d)  If the board determines that the proposed member entity

 12-8    should be added to the district, the board shall, subject to

 12-9    Subsection (e) of this section, issue an order:

12-10                (1)  adding the member entity and the territory or

12-11    service area of the member entity to the district; and

12-12                (2)  making the member entity and the territory or

12-13    service area of the member entity subject to the privileges,

12-14    duties, assets, and financial obligations of the district in the

12-15    same manner as other member entities of the district.

12-16          (e)  The board shall include in an order issued under

12-17    Subsection (d) of this section a requirement that the member entity

12-18    added to the district must reimburse the existing member entities

12-19    of the district, or directly reimburse the district, for the costs

12-20    incurred in creating and operating the district.  Reimbursement

12-21    under this subsection must be an equitable pro rata share of the

12-22    costs paid by the existing member entities or the district.

12-23          SECTION 6.02.  APPOINTMENT OF DIRECTORS BY NEW MEMBER ENTITY.

12-24    If the board issues an order under Subsection (d) of Section 6.01

12-25    of this article adding a member entity to the district, the

12-26    governing body of the member entity shall appoint the appropriate

12-27    number of directors to the board as provided by Subsection (g) of

12-28    Section 2.01 of this Act.

12-29                   ARTICLE 7.  MISCELLANEOUS PROVISIONS

12-30          SECTION 7.01.  INITIAL DIRECTORS.  (a)  The governing bodies

12-31    of the City of Springtown and the Walnut Creek Special Utility

12-32    District shall, not later than the 30th day after the effective

12-33    date of this Act, appoint the appropriate number of initial

12-34    directors as required by Subsection (b) of Section 2.01 of this

12-35    Act.

12-36          (b)  The Parker County judge, or the person designated by the

12-37    Parker County judge, shall begin serving as an ex officio director

12-38    as provided by Subsection (d) of Section 2.01 of this Act on the

12-39    effective date of this Act.

12-40          SECTION 7.02.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.

12-41    (a)  The proper and legal notice of the intention to introduce this

12-42    Act, setting forth the general substance of this Act, has been

12-43    published as provided by law, and the notice and copy of this Act

12-44    have been furnished to all persons, agencies, officials, or

12-45    entities to which they are required to be furnished by the

12-46    constitution and other laws of this state, including the governor,

12-47    who has submitted the notice and Act to the Texas Natural Resource

12-48    Conservation Commission.

12-49          (b)  The Texas Natural Resource Conservation Commission has

12-50    filed its recommendations relating to this Act with the governor,

12-51    lieutenant governor, and speaker of the house of representatives

12-52    within the required time.

12-53          (c)  All requirements of the constitution and laws of this

12-54    state and the rules and procedures of the legislature with respect

12-55    to the notice, introduction, and passage of this Act are fulfilled

12-56    and accomplished.

12-57          SECTION 7.03.  EMERGENCY.  The importance of this legislation

12-58    and the crowded condition of the calendars in both houses create an

12-59    emergency and an imperative public necessity that the

12-60    constitutional rule requiring bills to be read on three several

12-61    days in each house be suspended, and this rule is hereby suspended,

12-62    and that this Act take effect and be in force from and after its

12-63    passage, and it is so enacted.

12-64                                 * * * * *