By Howard                                             H.B. No. 3195
         77R9464 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operation, and financing of the Fort Bend County Municipal Utility
 1-4     District Number 134 and to the authorization of bonds and the levy
 1-5     of taxes; providing civil penalties.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7                       ARTICLE 1.  GENERAL PROVISIONS
 1-8           SECTION 1.01.  CREATION.  (a)  A conservation and reclamation
 1-9     district, to be known as Fort Bend County Municipal Utility
1-10     District Number 134, is created.  The district is a governmental
1-11     agency and a body politic and corporate.
1-12           (b)  The district is created under and is essential to
1-13     accomplish the purposes of Section 59, Article XVI, Texas
1-14     Constitution.
1-15           (c)  The district has the powers of a municipal utility
1-16     district as provided by Chapter 54, Water Code, and is governed by
1-17     Chapters 49 and 54, Water Code, unless otherwise provided by this
1-18     Act.
1-19           SECTION 1.02.  DEFINITIONS.  In this Act:
1-20                 (1)  "City" means the city of Houston.
1-21                 (2)  "District" means the Fort Bend County Municipal
1-22     Utility District Number 134.
1-23                 (3)  "Board" means the board of directors of the Fort
1-24     Bend County Municipal Utility District Number 134 or a district
 2-1     resulting from a division under Article 7 of this Act.
 2-2           SECTION 1.03.  BOUNDARIES.  (a)  The district includes the
 2-3     territory contained within the following area:
 2-4           Being 2337.415 acres of land located in the William Morton
 2-5     League, A-62, the Jane Wilkins League, Abstract 96, and the J.H.
 2-6     Cartwright Survey, Abstract 16, Fort Bend County, Texas, more
 2-7     particularly being a portion of the residue of that certain State
 2-8     of Texas Department of Criminal Justice (Harlem State Farm) tract
 2-9     called 5656.65 acres described by an instrument of record recorded
2-10     in Volume 152, Page 423 of the Deed Records of Fort Bend County,
2-11     Texas (F.B.C.D.R.), a portion of the residue of those certain
2-12     tracts called 437.379 acres, described as Exhibit A-13, 574.267
2-13     acres described as Exhibit A-12, and 1118.992 acres described as
2-14     Exhibit A-11, all conveyed to The State of Texas State Department
2-15     of Highways & Public Transportation by an instrument of record in
2-16     Volume 2329, Page 50 of the Official Records of Fort Bend County,
2-17     Texas (F.B.C.O.R.), said 2337.415 acres being more particularly
2-18     described in two (2) parts by metes and bounds as follows, all
2-19     bearings based on the Texas State Plane Coordinate System, South
2-20     Central Zone;
2-21                                   PART 1
2-22           BEGINNING at a 5/8-inch iron rod with TxDOT aluminum disc
2-23     found marking the northwest corner of that certain tract called
2-24     97.179 acres described as Parcel 9, conveyed to the State of Texas
2-25     for a Controlled Access Highway Facility (Grand Parkway, 300 feet
2-26     wide) by an instrument of record in Volume 2367, Page 2413
2-27     F.B.C.O.R., same being in the south line of the aforementioned
 3-1     residue of 574.267 acres;
 3-2           Thence, with the said south line, North 82 22'32" West,
 3-3     1588.16 feet to a point for corner in the east right-of-way line of
 3-4     Harlem Road, 71.5 feet wide;
 3-5           Thence, South 86 53'29" West, at 71.50 feet pass the
 3-6     southeast corner of the aforementioned residue of 437.379 acres and
 3-7     the west right-of-way line of said Harlem Road, and continue with
 3-8     the south line of said residue of 437.379 acres in all a distance
 3-9     of 1782.08 feet to a point for corner;
3-10           Thence, with the south line of said residue of 437.379 acres
3-11     the following two (2) courses:
3-12           1)  North 08 00'49" West, 1268.72 feet to a point for corner;
3-13           2)  South 86 22'27" West, 1692.03 feet to a point for corner,
3-14     same being the southwest corner of said 437.379 acres;
3-15           Thence, with the westerly line of said residue of 437.379
3-16     acres the following three (3) courses:
3-17           1)  North 02 25'57" West, 1303.62 feet to a point for corner;
3-18           2)  North 02 21'10" West, 1320.37 feet to a point for corner;
3-19           3)  North 02 08'31" West, 2220.08 feet to a point for corner
3-20     in the south line of Mortin Road (width varies);
3-21           Thence, with the common line of said residue of 437.379 acres
3-22     and Mortin Road, North 86 56'55" East, 3448.80 feet to a point for
3-23     corner in the aforementioned west right-of-way line of Harlem Road;
3-24           Thence, with said west right-of-way line of Harlem Road the
3-25     following two (2) courses:
3-26           1)  South 02 56'06" East, 1487.50 feet to a point for corner;
3-27           2)  South 03 03'53" East, 1259.36 feet to a point for corner
 4-1     in the south right-of-way line of aforementioned Grand Parkway and
 4-2     in the arc of a curve whose center bears South 04 45'14" West;
 4-3           Thence, with said south right-of-way line of Grand Parkway
 4-4     the following two (2) courses:
 4-5           1)  1207.94 feet along the arc of a curve to the right having
 4-6     a radius of 2664.79 feet, a central angle of 25 58'19" and a chord
 4-7     which bears South 36 15'37" East, 1197.62 feet to a point for
 4-8     corner at the end of said curve;
 4-9           2)  South 23 24'05" East, 2809.51 feet to the POINT OF
4-10     BEGINNING and containing 509.555 acres of land.
4-11                                   PART 2
4-12           BEGINNING at a 5/8-inch iron rod with TxDOT aluminum disc
4-13     found marking the northeast corner of that certain tract called
4-14     97.179 acres described as Parcel 9, conveyed to the State of Texas
4-15     for a Controlled Access Highway Facility (Grand Parkway, 300 feet
4-16     wide) by an instrument of record in Volume 2367, Page 2413
4-17     F.B.C.O.R., same being in the south line of the aforementioned
4-18     residue of 574.267 acres;
4-19           Thence, with the easterly right-of-way line of Grand Parkway
4-20     the following two (2) courses:
4-21           1)  North 23 18'39" West, 3046.62 feet to a point for corner,
4-22     the beginning of a curve;
4-23           2)  1622.02 feet along the arc of a curve to the left having
4-24     a radius of 3064.79 feet, a central angle of 30 19'24" and a chord
4-25     which bears North 38 28'09" West, 1603.15 feet to a point for
4-26     corner;
4-27           Thence, North 35 03'02" West, 47.60 feet to a point for
 5-1     corner;
 5-2           Thence, North 03 04'30" West, 225.00 feet to a point for
 5-3     corner;
 5-4           Thence, North 06 11'01" West, 100.20 feet to a point for
 5-5     corner in the east right-of-way line of Harlem Road, 71.5 feet
 5-6     wide;
 5-7           Thence, with said east right-of-way line, North 03 03'53"
 5-8     West, 450.10 feet to a point for corner in the south right of way
 5-9     line of Madden Road (width varies);
5-10           Thence, with said south right-of-way line of Madden Road the
5-11     following three (3) courses:
5-12           1)  North 87 52'53" East, 2316.95 feet to a point for corner;
5-13           2)  North 87 21'39" East, 3275.44 feet to a point for corner;
5-14           3)  North 87 28'16" East, at 54.43 feet pass an angle point
5-15     in said south right-of-way line of Madden Road and continue with
5-16     the north line of said residue of 574.267 acres in all a distance
5-17     of 762.58 feet to a point for corner in the west line of the
5-18     aforementioned residue of 1118.992 acres;
5-19           Thence, with the west line of said residue of 1118.992 acres,
5-20     North 02 10'00" West, 2584.54 feet to a point for corner in the
5-21     south line of aforementioned Madden Road, same being the northwest
5-22     corner of said residue of 1118.992 acres;
5-23           Thence, with the common line of said residue of 1118.992
5-24     acres and Madden Road, North 88 04'14" East, 4804.30 feet to a
5-25     point for corner in the west right-of-way line of F.M. 1464, 80
5-26     feet wide;
5-27           Thence, with the common line of said residue of 1118.992
 6-1     acres and F.M. 1464 the following five (5) courses:
 6-2           1)  South 07 00'01" East, 725.91 feet to a point for corner;
 6-3           2)  South 02 33'11" East, 8041.31 feet to a point for corner;
 6-4           3)  South 87 37'59" West, 35.60 feet to a point for corner;
 6-5           4)  South 02 16'30" East, 18.37 feet to a point for corner,
 6-6     the beginning of a curve
 6-7           5)  446.12 feet along the arc of a curve to the right having
 6-8     a radius of 1834.86 feet, a central angle of 13 55'51" and a chord
 6-9     which bears South 04 25'35" West, 445.03 feet to a point for corner
6-10     in the south line of said residue of 1118.992 acres;
6-11           Thence, with the south line of said residue of 1118.992 acres
6-12     the following three (3) courses:
6-13           1)  South 87 38'52" West, 1339.67 feet to a point for corner;
6-14           2)  North 02 16'32" West, 1004.04 feet to a point for corner;
6-15           3)  South 88 29'15" West, 3462.95 feet to a point for corner,
6-16     same being a reentrant corner of the aforementioned 5656.65 acres;
6-17           Thence, with an east line of said 5656.65 acres, South
6-18     02 24'27" East, 3277.78 feet to a point for corner in the
6-19     centerline of Oyster Creek;
6-20           Thence, with said centerline of Oyster Creek the following
6-21     five (5) courses:
6-22           1)  North 23 27'08" West, 390.38 feet to a point for corner,
6-23     the beginning of a curve;
6-24           2)  1062.30 feet along the arc of a curve to the left having
6-25     a radius of 950.00 feet, a central angle of 64 04'07" and a chord
6-26     which bears North 55 29'12" West, 1007.81 feet to a point for
6-27     corner at the end of said curve;
 7-1           3)  North 87 31'15" West, 773.83 feet to a point for corner,
 7-2     the beginning of a curve;
 7-3           4)  675.89 feet along the arc of a curve to the left having a
 7-4     radius of 1050.00 feet, a central angle of 36 52'54" and a chord
 7-5     which bears South 74 02'18" West, 664.28 feet to a point for corner
 7-6     at the end of said curve;
 7-7           5)  South 55 35'51" West, 824.96 feet to a point for corner
 7-8     in the easterly line of the aforementioned Grand Parkway;
 7-9           Thence, with said easterly line of Grand Parkway the
7-10     following six (6) courses:
7-11           1)  North 23 17'59" West, 1559.47 feet to a point for corner;
7-12           2)  North 22 14'23" West, 840.34 feet to a point for corner;
7-13           3)  North 21 08'23" West, 508.72 feet to a point for corner;
7-14           4)  North 18 04'32" West, 396.44 feet to a point for corner;
7-15           5)  North 19 01'23" West, 397.70 feet to a point for corner;
7-16           6)  North 23 58'25" West, 4.01 feet to the POINT OF BEGINNING
7-17     and containing 1827.860 acres of land.
7-18           Said Part 1 and Part 2 containing a total of 2337.415 acres
7-19     of land.
7-20           (b)  A mistake in the patents or field notes or in copying
7-21     the patents or field notes in the legislative process does not
7-22     affect the organization, existence, or validity of the district,
7-23     the right of the district to issue bonds or refunding bonds or to
7-24     pay the principal of or interest on issued bonds, the right of the
7-25     district to levy and collect taxes, or the legality or operation of
7-26     the district or its governing board.
7-27                    ARTICLE 2.  ADMINISTRATIVE PROVISIONS
 8-1           SECTION 2.01.  BOARD.  (a)  The district is governed by a
 8-2     board of five directors elected as provided by Section 2.04.
 8-3           (b)  Except for initial directors, directors serve staggered
 8-4     four-year terms, with the terms of two or three directors expiring
 8-5     September 1 of each even-numbered year.
 8-6           (c)  Initial directors shall serve until permanent directors
 8-7     are elected under Section 2.04 of this Act and have qualified as
 8-8     required by Subsection (e) of this section.
 8-9           (d)  A director serves until the director's successor has
8-10     qualified.
8-11           (e)  A director must qualify to serve as required by Section
8-12     49.055, Water Code.
8-13           SECTION 2.02.  DIRECTOR ELIGIBILITY.  (a)  Except for initial
8-14     directors, a person must meet the requirements of Section 54.102,
8-15     Water Code, to be eligible to serve as a director.  A person must
8-16     be a resident of Fort Bend County or Travis County to be eligible
8-17     to serve as an initial director.
8-18           (b)  Notwithstanding Section 49.052, Water Code, employment
8-19     with a state agency, other than the Texas Department of
8-20     Transportation, the General Land Office, or the School Land Board,
8-21     does not disqualify a person from serving as a director.
8-22           (c)  An employee of the district may not serve as a director.
8-23           SECTION 2.03.  APPOINTMENT OF INITIAL DIRECTORS.  (a)  The
8-24     School Land Board shall appoint five initial directors as soon as
8-25     practicable after the effective date of this Act.  The School Land
8-26     Board shall appoint two initial directors to serve terms expiring
8-27     on the first Saturday in May 2002, and three initial directors to
 9-1     serve terms expiring on the first Saturday in May 2004.
 9-2           (b)  If a vacancy occurs, the School Land Board shall appoint
 9-3     a successor to fill the vacancy and to serve the remainder of the
 9-4     unexpired term.
 9-5           SECTION 2.04.  ELECTION OF PERMANENT DIRECTORS.  (a)
 9-6     Beginning in 2002, on the first Saturday in May of each
 9-7     even-numbered year an election shall be held for the election of
 9-8     the appropriate number of permanent directors.
 9-9           (b)  The board shall publish notice of an election under this
9-10     section once a week for two consecutive weeks in a newspaper of
9-11     general circulation in the district beginning not later than 14
9-12     days before the date of the election.
9-13           SECTION 2.05.  MEETINGS AND BOARD ACTIONS.  (a)  The board
9-14     may establish regular meetings to conduct the business of the
9-15     district and may hold special meetings if necessary as determined
9-16     by the board.  The board shall hold a meeting under this section
9-17     within the district unless the board, by a majority vote at a
9-18     public meeting, decides to hold the meeting outside of the
9-19     district.
9-20           (b)  The board may adopt bylaws to govern the affairs of the
9-21     district. The board may provide in the bylaws that, except for
9-22     initial directors, a director shall receive compensation of $20 for
9-23     attending a meeting of the board.  A director may not be paid more
9-24     than $40 for meetings held in a calendar month.
9-25           SECTION 2.06. APPOINTMENT OF BOARD SECRETARY AND TREASURER.
9-26     The board shall appoint a secretary and treasurer.  The  secretary
9-27     and treasurer may be, but are not required to be, members of the
 10-1    board.  One person may serve as both secretary and treasurer.  The
 10-2    treasurer shall give bond in an amount required by the board.  The
 10-3    condition of the bond shall be that the treasurer will faithfully
 10-4    account for all money that comes into the custody of the treasurer.
 10-5    The board shall require a bond under this section of at least
 10-6    $100,000 if the district has authorized the issuance of bonds.  If
 10-7    the district has not authorized the issuance of bonds, the board
 10-8    shall require a bond of at least $5,000.
 10-9          SECTION 2.07.  CONFLICT OF INTEREST: CONTRACT.  A director
10-10    who is financially interested in a contract that is proposed to be
10-11    executed by the board for the purchase of property or services or
10-12    for the construction of facilities shall disclose the director's
10-13    interest to the board and may not vote on the acceptance of the
10-14    contract.
10-15          SECTION 2.08.  DISTRICT EMPLOYEES.  The board may employ a
10-16    general manager and consulting engineers, financial consultants,
10-17    attorneys, and auditors.  The general manager shall be responsible
10-18    for:
10-19                (1)  administering the board's directives;
10-20                (2)  maintaining district records, including minutes of
10-21    board meetings;
10-22                (3)  coordinating with federal, state, and local
10-23    agencies;
10-24                (4)  developing plans and programs for the board's
10-25    approval;
10-26                (5)  hiring, supervising, training, and discharging the
10-27    district's employees;
 11-1                (6)  obtaining technical, scientific, legal, fiscal, or
 11-2    other professional services for the district; and
 11-3                (7)  performing other duties as assigned by the board. 
 11-4          SECTION 2.09.  EMPLOYEE BONDS.  (a)  The general manager and
 11-5    each employee of the district who is charged with the collection,
 11-6    custody, or payment of district money shall execute a fidelity bond
 11-7    in an amount determined by the board and in a form and with a
 11-8    surety approved by the board.
 11-9          (b)  The district shall pay the premium on a bond under this
11-10    section.
11-11          SECTION 2.10.  PRINCIPAL OFFICE.  (a)  If the district has
11-12    not issued bonds, the district may maintain its principal office in
11-13    Fort Bend County or Travis County.  If the district maintains its
11-14    principal office in Travis County, the district shall maintain
11-15    duplicates of district records in Fort Bend County and make the
11-16    duplicate records available for inspection during regular business
11-17    hours.
11-18          (b)  If the district has issued bonds, the district shall
11-19    maintain its principal office in Fort Bend County.
11-20          SECTION 2.11.  RECORDS.  (a)  The district shall keep at its
11-21    principal office:
11-22                (1)  a complete and accurate account of the district's
11-23    business transactions in accordance with generally accepted
11-24    accounting methods;
11-25                (2)  a complete and accurate record of the minutes of
11-26    board meetings; and
11-27                (3)  contracts, documents, and other records of the
 12-1    district.
 12-2          (b)  The district shall permit reasonable public inspection
 12-3    of the district's records during regular business hours.
 12-4                     ARTICLE 3.  AUTHORITY OF DISTRICT
 12-5          SECTION 3.01.  POWERS AND DUTIES.  (a)  The district shall:
 12-6                (1)  administer and enforce the provisions of this Act;
 12-7                (2)  use the facilities and powers of the district to
 12-8    accomplish the purposes of this Act;
 12-9                (3)  coordinate water, wastewater, and drainage
12-10    services within the district; and
12-11                (4)  control and abate water pollution within the
12-12    district.
12-13          (b)  When designing utility infrastructure and related
12-14    systems, the district shall submit the district's design plans and
12-15    specifications for the utility infrastructure and related systems
12-16    for review and approval to the City of Houston.  The district shall
12-17    pay to the city a fee for conducting the review if the city has
12-18    established a fee that has general application for comparable
12-19    reviews.  The city shall complete the review of the design plans
12-20    and specifications not later than the 60th day after the date on
12-21    which the plans and specifications are delivered to the city.  In
12-22    constructing the utility infrastructure, the district shall meet or
12-23    exceed the city construction standards for materials and
12-24    installation specifications.
12-25          (c)  Subject to the authority of the Texas Natural Resource
12-26    Conservation Commission, the district may control and abate water
12-27    pollution within the district.  The authority of the district under
 13-1    this subsection does not restrict the authority of the city to
 13-2    control and abate water pollution within the district under state
 13-3    or federal law.
 13-4          (d)  Except as provided by this Act, the district has the
 13-5    powers, rights, and privileges necessary and convenient for
 13-6    accomplishing the purposes of this Act as provided by general law
 13-7    relating to a municipal utility district or water control and
 13-8    improvement district created under Section 59, Article XVI, Texas
 13-9    Constitution.
13-10          SECTION 3.02.  DISTRICT RULES.  (a)  The district may adopt
13-11    and enforce rules reasonably required to implement this Act,
13-12    including rules governing procedure and practice before the board. 
13-13          (b)  The district shall keep a record of the district's rules
13-14    and provide a copy of the rules to a person on written request.
13-15          SECTION 3.03.  INSPECTIONS AND INVESTIGATIONS.  In addition
13-16    to the powers provided by Section 49.221, Water Code, the district
13-17    may enter public or private property located within the district
13-18    for purposes of inspecting and investigating conditions of the
13-19    property relating to the district's authorized purposes.  The
13-20    district shall conduct an inspection or investigation in accordance
13-21    with provisions and restrictions applicable to the Texas Natural
13-22    Resource Conservation Commission.
13-23          SECTION 3.04.  HEARINGS AND ORDERS.  (a)  The board may:
13-24                (1)  hold hearings, receive evidence from a party in
13-25    interest who appears before the board, compel the attendance of a
13-26    witness, and make findings of fact and determinations relating to
13-27    the administration of this Act or an order or rule of the board;
 14-1    and
 14-2                (2)  delegate the authority to take testimony and
 14-3    administer oaths in a hearing held by the district to a member of
 14-4    the board or an employee of the district.
 14-5          (b)  An order of the board must:
 14-6                (1)  be in the name of the district; and
 14-7                (2)  be attested to by the appropriate members of the
 14-8    board under the district's rules.
 14-9          SECTION 3.05.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
14-10    violates a rule, permit, or order of the district is subject to a
14-11    civil penalty of not less than $50 and not more than $1,000 for
14-12    each violation or each day of a continuing violation.
14-13          (b)  The district may sue to enjoin a threatened or present
14-14    activity or to recover the penalty in a district court in the
14-15    county in which the violation occurred.  A penalty recovered under
14-16    this subsection shall be paid to the district.
14-17          SECTION 3.06.  PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
14-18    (a)  The district may obtain water appropriation permits,
14-19    construction permits, and other water and wastewater discharge
14-20    permits from the Texas Natural Resource Conservation Commission or
14-21    from permit owners.  The district may acquire water or a water
14-22    supply from a person, firm, corporation, municipal corporation, or
14-23    public agency, the state, the United States, or any agency of the
14-24    state or the United States.  The board may contract with one or
14-25    more substantial users of water to acquire a water supply under an
14-26    agreed allocation of storage space between the district and the
14-27    user or the district may contract for the district's water supply
 15-1    independently.  The district may collect, transport, process,
 15-2    dispose of, and control all domestic, industrial, and communal
 15-3    wastes, whether in fluid, solid, or composite state.  The district
 15-4    may contract with a person, firm, corporation, municipal
 15-5    corporation, or public agency, the state, the United States, or any
 15-6    agency of the state or the United States for the collection,
 15-7    transportation, processing, disposition, or control of domestic,
 15-8    industrial, and communal wastes.  District authority under this
 15-9    subsection includes the authority to enter into contracts involving
15-10    coordinated infrastructure or regional utility plans.  The district
15-11    may not unilaterally require a person, firm, corporation, municipal
15-12    corporation, public agency, or other entity to fund or construct
15-13    utility infrastructure for purposes of extending utilities to the
15-14    district.
15-15          (b)  The district may contract with the state, a
15-16    municipality, another entity created under Section 59, Article XVI,
15-17    Texas Constitution, or another entity to supply water or to provide
15-18    services relating to domestic, industrial, or commercial waste.
15-19    The district may contract with a person, a municipality, or another
15-20    entity created under Section 59, Article XVI, Texas Constitution,
15-21    to rent, lease, or operate water production, water supply, water
15-22    filtration or purification, and water supply facilities and
15-23    facilities to provide services relating to the wastes of the
15-24    person, municipality, or entity for a consideration agreed to by
15-25    the district and the person, municipality, or entity.  A contract
15-26    under this subsection may provide that the contract continues in
15-27    effect until specified bonds or notes and refunding bonds issued in
 16-1    lieu of the bonds or notes are paid.  A municipality or entity
 16-2    described by this subsection may enter into a contract with the
 16-3    district to fix, charge, and collect fees, rates, charges, rentals,
 16-4    or other amounts for a service or facility provided under a
 16-5    contract with the district and may pledge amounts that are
 16-6    sufficient to make the payments required under the contract.
 16-7          (c)  For purposes of land use planning, the district shall
 16-8    encourage owners and developers of land located within the district
 16-9    to use and develop the land and buildings in compliance with
16-10    building, housing, and fire codes, subdivision and zoning
16-11    regulations, thoroughfare, water conservation, and land use plans,
16-12    and other land development and safety regulations of the city.
16-13          SECTION 3.07.  FACILITIES.  (a)  In addition to the authority
16-14    provided by Sections 49.218 and 54.201, Water Code, the district
16-15    may purchase, construct, acquire, own, lease, operate, maintain,
16-16    repair, improve, and extend, at any location within or outside of
16-17    the district, land, or an interest in land, a work, an improvement,
16-18    a facility, a plant, equipment, or an appliance that is incident,
16-19    helpful, or necessary to provide for:
16-20                (1)  the control, storage, preservation, transmission,
16-21    treatment, and distribution and use of storm water and floodwater,
16-22    the water of rivers and streams, and underground water for
16-23    municipal, domestic, industrial, and other beneficial uses; and
16-24                (2)  the collection, transportation, processing,
16-25    disposition, and control of domestic, industrial, or commercial
16-26    wastes.
16-27          (b)  The district may:
 17-1                (1)  contract with a person, firm, corporation,
 17-2    municipality, other entity created under Section 59, Article XVI,
 17-3    Texas Constitution, municipal corporation, public agency, or other
 17-4    political subdivision of the state; and
 17-5                (2)  perform any other act consistent with the powers
 17-6    of the district and necessary to fulfill the purposes of this Act. 
 17-7          SECTION 3.08.  USE OF PUBLIC ROADWAYS, STREETS, ALLEYS, OR
 17-8    EASEMENTS.  The district may use a public roadway, street, alley,
 17-9    or easement in Fort Bend County to accomplish the purposes of the
17-10    district.  The district is not required to obtain a franchise or
17-11    other governmental agreement to use a roadway, street, alley, or
17-12    easement that is owned by the city if, before using the roadway,
17-13    street, alley, or easement, the district obtains written consent of
17-14    the city to the particular use. The district shall pay a fee to a
17-15    city for the use of the roadway, street, alley, or easement that
17-16    equals the lesser of the district's pro rata share, based on actual
17-17    area encumbered, of the fair market value or the initial purchase
17-18    price for the roadway, street, alley, or easement.
17-19          SECTION 3.09.  RELOCATION OF FACILITIES.  The district may
17-20    relocate, raise, reroute, or change the grade of, or alter the
17-21    construction of, a highway, railroad, electric transmission line,
17-22    pipeline, canal, or drainage ditch, if considered necessary by the
17-23    board.  The district shall pay for any relocation, raising,
17-24    rerouting, changing, or altering under this section, unless
17-25    otherwise agreed in writing by the interested parties.  The cost of
17-26    replacement is limited to the comparable replacement of any
17-27    replaced facility, less the replaced facility's net salvage value. 
 18-1                   ARTICLE 4.  GENERAL FISCAL PROVISIONS
 18-2          SECTION 4.01.  DISBURSEMENT OF MONEY.  The district may
 18-3    disburse money only by check, draft, order, or other instrument
 18-4    signed by a person authorized in the bylaws of the district or by
 18-5    board resolution.
 18-6          SECTION 4.02.  FEES AND CHARGES.  The district may establish
 18-7    fees and charges not to exceed the amounts necessary to enable the
 18-8    district to fulfill the obligations of the district as provided by
 18-9    this Act.
18-10          SECTION 4.03.  LOANS AND GRANTS.  The district may apply for
18-11    and receive a loan or grant from the state or the United States, or
18-12    any agency of the state or the United States, or from a private
18-13    entity, for purposes of exercising the powers of the district.
18-14          SECTION 4.04.  DEPOSITORY BANKS.  (a)  District funds shall
18-15    be deposited in a depository bank designated under Section 49.156,
18-16    Water Code, and this section.
18-17          (b)  Before designating at least one depository bank as
18-18    provided by Section 49.156, Water Code, the board shall publish
18-19    notice at least once in a newspaper of general circulation in the
18-20    district to solicit applications from banks interested in serving
18-21    as a depository for the district.  The notice shall include the
18-22    time and place of the board meeting at which the board proposes to
18-23    designate a depository bank.  The board shall prescribe the term of
18-24    service of a depository bank designated under Subsection (a) of
18-25    this section.
18-26          (c)  The board shall review an application received under
18-27    Subsection (b) of this section, including examining the management
 19-1    and condition of each bank submitting an application.  In reviewing
 19-2    an application under this subsection, the board may consider:
 19-3                (1)  the terms and conditions proposed by a bank for
 19-4    handling the district's money;
 19-5                (2)  the management of the bank; and
 19-6                (3)  the ability of the bank to handle the district's
 19-7    money.
 19-8          (d)  A bank is not disqualified from being a depository under
 19-9    this section because an officer or a director of the bank is a
19-10    member of the board.
19-11          (e)  An officer or a director of a bank is not disqualified
19-12    from being a member of the board.
19-13          (f)  If the board does not receive an application under this
19-14    section, the board may designate a bank as depository on terms that
19-15    the board finds proper.
19-16                    ARTICLE 5.  BOND AND TAX PROVISIONS
19-17          SECTION 5.01.  TAXES; REVENUE BONDS.  (a)  For purposes of
19-18    exercising the authority of the district as provided by this Act,
19-19    the district may issue bonds or other obligations that are:
19-20                (1)  secured by ad valorem taxes;
19-21                (2)  secured by a pledge of all or part of the revenues
19-22    accruing to the district, including revenues received from the sale
19-23    of water or other products, the rendition of service, tolls,
19-24    charges, and any other source of revenue, other than ad valorem
19-25    taxes; and
19-26                (3)  secured by both a pledge of all or part of the
19-27    revenues described by Subdivision (2) of this subsection and ad
 20-1    valorem taxes.
 20-2          (b)  An obligation issued by the district shall be authorized
 20-3    by resolution of the board, issued in the name of the district,
 20-4    signed by the president or vice president, attested to by the
 20-5    secretary, and bear the seal of the district.  The signatures of
 20-6    the president or vice president and the secretary may be printed or
 20-7    lithographed on the obligation.  The seal of the district may be
 20-8    impressed, printed, or lithographed on the obligation.  An
 20-9    obligation issued by the district:
20-10                (1)  shall be in a form prescribed by the board;
20-11                (2)  may be in any denomination;
20-12                (3)  shall mature serially or otherwise not later than
20-13    50 years from the date of issuance;
20-14                (4)  may bear any interest rate;
20-15                (5)  may be sold at a price and under terms determined
20-16    by the board to be the most advantageous available;
20-17                (6)  may, in the discretion of the board, be made
20-18    callable before maturity at times and prices as provided in the
20-19    obligation;
20-20                (7)  may be made registrable as to principal or
20-21    principal and interest; and
20-22                (8)  may be secured by an indenture of trust with a
20-23    corporate trustee.
20-24          (c)  An obligation under this section may be issued in more
20-25    than one series as required to carry out the purposes of this Act.
20-26    A pledge of revenue may reserve the right to issue additional
20-27    obligations under conditions specified on the pledge.  An
 21-1    additional obligation is on a parity with or subordinate to the
 21-2    original obligation.
 21-3          (d)  The district is an issuer for purposes of Chapter 1371,
 21-4    Government Code.
 21-5          (e)  A board resolution authorizing an obligation or a trust
 21-6    indenture under this section may include additional terms to
 21-7    provide for a corporate trustee or receiver to take possession of
 21-8    facilities of the district in the event of default by the district
 21-9    relating to the obligation or trust indenture.  The additional
21-10    terms, if any, constitute a contract between the district and the
21-11    owner of the obligation.
21-12          (f)  The district may not issue bonds that are secured by or
21-13    otherwise encumber permanent school fund land located within the
21-14    district.
21-15          SECTION 5.02.  BOND ANTICIPATION NOTES.  The district may
21-16    issue bond anticipation notes for purposes of exercising the powers
21-17    of the district.  Bond anticipation notes may be secured by a
21-18    pledge of all or part of the revenues of the district.  The
21-19    district may authorize the issuance of bonds to pay the principal
21-20    of and interest on bond anticipation notes issued under this
21-21    section.  Bond anticipation notes shall be secured by a pledge of
21-22    all or part of the revenues of the district and may be issued on a
21-23    parity with or subordinate to outstanding bonds of the issuer.  If
21-24    the resolution or trust agreement authorizing the issuance of bond
21-25    anticipation notes contains a covenant that the notes are payable
21-26    from the proceeds of subsequently issued bonds, the district is not
21-27    required to demonstrate that the revenues that may be pledged to
 22-1    the notes are sufficient to pay the principal of and interest on
 22-2    the notes for purposes of receiving approval of the attorney
 22-3    general or registration by the comptroller.
 22-4          SECTION 5.03.  REFUNDING BONDS.  (a)  The district may issue
 22-5    refunding bonds to refund outstanding bonds and interest as
 22-6    authorized by this Act.
 22-7          (b)  Refunding bonds may:
 22-8                (1)  be issued to refund one or more series of
 22-9    outstanding bonds;
22-10                (2)  combine the pledges for the outstanding bonds for
22-11    the security of the refunding bonds; or
22-12                (3)  be secured by additional revenues.
22-13          (c)  Refunding bonds may be issued without holding an
22-14    election to authorize the issuance of the bonds.  The provisions of
22-15    this Act relating to the issuance of other bonds by the district,
22-16    security for the bonds, approval by the attorney general, and
22-17    remedies of the holders of the bonds apply to refunding bonds.
22-18          (d)  Refunding bonds shall be registered by the comptroller
22-19    on surrender and cancellation of the bonds to be refunded or, if
22-20    the resolution authorizing the issuance of refunding bonds provides
22-21    that the bonds shall be sold and the proceeds deposited in the bank
22-22    where the bonds to be refunded are payable, the refunding bonds may
22-23    be issued in an amount sufficient to pay the principal and interest
22-24    of the bonds to be refunded to their option or maturity date.  The
22-25    comptroller shall register the refunding bonds without concurrent
22-26    surrender and cancellation of the bonds to be refunded.
22-27          SECTION 5.04.  APPROVAL AND REGISTRATION OF BONDS.  District
 23-1    bond review and approval is governed by Subchapter F, Chapter 49,
 23-2    Water Code.
 23-3          SECTION 5.05.  PROPERTY:  RENDITION; VALUATION; LEVY.
 23-4    (a)  Except as provided by this section, the rendition and
 23-5    assessment of property for taxation, the equalization of values,
 23-6    and the collection of taxes for the benefit of the district shall
 23-7    be conducted in accordance with the law applicable to counties to
 23-8    the extent possible.
 23-9          (b)  The tax assessor-collector of the county shall act as
23-10    the tax assessor-collector for the district for district property
23-11    located in the county.  The county tax assessor-collector shall
23-12    place on the county tax rolls a column or columns as necessary to
23-13    show the taxes, including the amount of taxes, levied by the
23-14    district, based on the value of the property as approved and
23-15    equalized.  The fee charged by the county tax assessor-collector
23-16    for assessing and collecting taxes is one percent of the taxes
23-17    collected and shall be paid and disbursed by the district in the
23-18    same manner as other fees of office.
23-19          (c)  The mechanisms available to enforce the collection of
23-20    state and county taxes may be used by the district to enforce the
23-21    collection of taxes levied by the district.  The district is
23-22    entitled to require the county officers to enforce and collect the
23-23    taxes due to the district as provided for the enforcement of state
23-24    and county taxes.
23-25          (d)  Taxes assessed and levied for the benefit of the
23-26    district are payable and become delinquent at the same time, in the
23-27    same manner, and subject to the same discount for advance payment
 24-1    as taxes levied by and for the benefit of the county in which the
 24-2    property is taxable.  The fee for collecting delinquent taxes
 24-3    through prosecution of suit is 15 percent of the taxes collected by
 24-4    the suit, to be paid and disbursed by the district in the same
 24-5    manner as other fees of office.
 24-6          (e)  At the same time that the commissioners court levies
 24-7    county taxes, the board shall levy a tax on all taxable property in
 24-8    the district that is subject to taxation.  The board shall
 24-9    immediately certify the tax rate to the tax assessor-collector of
24-10    each county that contains territory within the district.
24-11                ARTICLE 6.  ADDITION AND EXCLUSION OF LAND
24-12          SECTION 6.01.  ANNEXATION.  The district may add territory as
24-13    provided by Sections 6.02, 6.03, and 6.04 of this Act.
24-14          SECTION 6.02.  PETITION TO ADD LAND.  (a)  An owner or owners
24-15    of land, whether or not contiguous to the territory of the
24-16    district, may file with the board a petition requesting that the
24-17    land described in the petition by metes and bounds or by lot and
24-18    block number, if there is a recorded plat of the area, be included
24-19    in the district.
24-20          (b)  A petition under Subsection (a) of this section must be
24-21    signed and executed in the manner provided by law for the
24-22    conveyance of real estate.
24-23          (c)  A petition requesting that the district annex a defined
24-24    area must be filed with the secretary of the board and must be
24-25    signed by:
24-26                (1)  a majority in value of the owners of land in the
24-27    defined area, as shown by the tax rolls of the county or counties
 25-1    in which the defined area is located, if the number of landowners
 25-2    in the defined area is 50 or less; or
 25-3                (2)  50 landowners if the number of landowners in the
 25-4    defined area is more than 50.
 25-5          (d)  The board shall hear and consider a petition received
 25-6    under Subsection (a) of this section and may add to the district
 25-7    the land described in the petition if:
 25-8                (1)  the board determines that adding the land to the
 25-9    district is advantageous to the district; and
25-10                (2)  the water system and other improvements of the
25-11    district are sufficient or will be sufficient to provide service to
25-12    the land added to the district without injuring the land in the
25-13    district before the petition is granted.
25-14          SECTION 6.03.  NOTICE AND HEARING.  (a)  The board shall
25-15    issue an order setting a time and place to hear a petition filed
25-16    under Section 6.02 of this Act.  The hearing shall be held not
25-17    earlier than the 15th day after the date on which the board issues
25-18    the order.
25-19          (b)  The secretary shall issue a notice providing the time
25-20    and place of the hearing set under Subsection (a) of this section
25-21    and describing the area proposed to be annexed.  Notice of the
25-22    hearing shall be given by:
25-23                (1)  posting copies of the notice in three public
25-24    places in the district and in one public place in the area proposed
25-25    to be annexed for at least seven days before the date of the
25-26    hearing; and
25-27                (2)  publishing a copy of the notice in a newspaper of
 26-1    general circulation in the county or counties in which the area
 26-2    proposed to be annexed is located at least seven days before the
 26-3    date of the hearing.
 26-4          (c)  If the board finds that the proposed annexation  is
 26-5    feasible and practicable and would benefit the district and the
 26-6    area proposed to be added to the district, the board may by order
 26-7    receive all or a part of the proposed area as an addition to and
 26-8    part of the district.  An order issued by the board under this
 26-9    subsection shall describe the area added to the district and be
26-10    entered in the minutes.
26-11          SECTION 6.04.  ANNEXATION ORDER.  (a)  A copy of the order
26-12    adding land to the district shall be signed by a majority of the
26-13    members of the board, attested to by the secretary of the board,
26-14    and filed and recorded in the deed records of the county or
26-15    counties in which the district is located.
26-16          (b)  On the date that the order is recorded as required by
26-17    Subsection (a) of this section, the area described in the order is
26-18    included in the territory of the district.
26-19          SECTION 6.05.  PETITION TO EXCLUDE LAND.  A petition to
26-20    exclude land from the district must specifically describe the land
26-21    to be excluded by metes and bounds or by reference to a plat
26-22    recorded in the plat records of the county or counties in which the
26-23    land is located.  The petition must be signed by at least 10
26-24    percent of the owners of land in the area to be excluded or, if the
26-25    number of owners of land is more than 50, by at least five of the
26-26    owners of land.  The petition must be filed with the district
26-27    before the seventh day preceding the date the hearing is held to
 27-1    consider the petition.  The petition must clearly state the grounds
 27-2    supporting the exclusion of the land from the district.  The board
 27-3    may consider only the grounds stated in the petition.
 27-4          SECTION 6.06.  NOTICE AND HEARING.  (a)  The board may order
 27-5    a hearing to be held to exclude land from the district on petition
 27-6    of a landowner or on motion of the board if there is no outstanding
 27-7    board order relating to an election for the authorization of bonds
 27-8    payable in whole or in part from taxes and the district does not
 27-9    have outstanding indebtedness secured by taxes or net revenues of
27-10    the district.
27-11          (b)  Notice of hearing under this section shall be published
27-12    by the board once a week for two consecutive weeks in one or more
27-13    newspapers of general circulation in the district.  The first
27-14    notice shall be published not earlier than the 40th day or later
27-15    than the 14th day preceding the date of the hearing.
27-16          (c)  The board may not exclude land from the district unless
27-17    the board determines that:
27-18                (1)  the district has no obligations that will be
27-19    impaired by the exclusion of the land;
27-20                (2)  the district will incur no obligations as a result
27-21    of the exclusion; and
27-22                (3)  the exclusion is in the best interests of the
27-23    district.
27-24          (d)  The board, after considering all engineering data and
27-25    other evidence presented at the hearing and making the
27-26    determinations required by Subsection (c) of this section, shall
27-27    enter an order excluding the land from the district and redefining
 28-1    the boundaries of the district as appropriate.  If land proposed to
 28-2    be excluded contains water or wastewater customers of the district,
 28-3    the customers remain customers of the district.  Owners of lots
 28-4    within the land proposed to be excluded in which water and
 28-5    wastewater facilities have been extended retain the right to
 28-6    connect to the district's water and wastewater system and become
 28-7    district customers.
 28-8          SECTION 6.07.  EFFECTIVE DATE OF ORDER EXCLUDING LAND.
 28-9    (a)  Except as provided by Subsection (c) of this section, an order
28-10    of the board excluding land from the district on petition signed by
28-11    the owner or owners of land that is proposed to be excluded takes
28-12    effect on the date on which the board enters the order.
28-13          (b)  Except as provided by Subsection (c) of this section, an
28-14    order excluding land from the district on petition signed by less
28-15    than all the owners of land that is proposed to be excluded takes
28-16    effect:
28-17                (1)  on the day immediately following the date on which
28-18    a petition under Section 6.08 of this Act must be received by the
28-19    board if the district does not receive a petition under that
28-20    section; or
28-21                (2)  on the day immediately following the date on which
28-22    the election returns are canvassed if the exclusion is ratified at
28-23    an election under Section 6.08 of this Act.
28-24          (c)  An order excluding land from the district under this
28-25    section may not take effect unless all taxes levied and assessed by
28-26    the district within the land that is proposed to be excluded are
28-27    paid in full.
 29-1          SECTION 6.08.  PETITION FOR RATIFICATION ELECTION.  (a)  If
 29-2    the board issues an order excluding land on petition signed by less
 29-3    than all the owners of land in the area proposed to be excluded,
 29-4    the board shall publish a notice that describes the excluded land
 29-5    and states that the exclusion  will become final unless the board
 29-6    receives, not later than the 25th day after the date on which the
 29-7    board issues the order, a petition requesting a ratification
 29-8    election.  A petition under this subsection must be signed by at
 29-9    least 10 percent of the qualified voters residing in the area that
29-10    is proposed to be excluded from the district.
29-11          (b)  If the board receives a petition under Subsection (a) of
29-12    this section, the order excluding land from the district is not
29-13    effective unless the exclusion is approved by a majority vote of
29-14    the residents of the district at a ratification election held for
29-15    that purpose.
29-16          (c)  A ratification election, including notice of the
29-17    election and the qualifications of the voters, shall be conducted
29-18    as provided by Subchapter J, Chapter 49, Water Code.
29-19                     ARTICLE 7.  DIVISION OF DISTRICT
29-20          SECTION 7.01.  CONDITIONS OF DIVISION.  (a)  The board may
29-21    divide the territory of the district into two or more districts if
29-22    the district does not have outstanding indebtedness secured by
29-23    taxes or net revenues.  The board may not divide the territory of
29-24    the district if the division results in a district with territory
29-25    of less than 100 acres.  On petition of a landowner or on motion of
29-26    the board, the board may consider a proposal to divide the original
29-27    district or any district subsequently created by division.
 30-1          (b)  The board may not divide territory of the district if
 30-2    the division results in numerous utility providers within the
 30-3    original territory of the district.  The board may divide territory
 30-4    of the district for purposes of encouraging and promoting orderly
 30-5    development within the original territory of the district and
 30-6    facilitating dependable and efficient utility service at affordable
 30-7    rates to customers of the district.
 30-8          (c)  Creation of new districts by division of the district or
 30-9    any districts resulting from the divisions of the district must be
30-10    accomplished in compliance with other applicable law, including the
30-11    necessity of obtaining any consent from any municipality in whose
30-12    extraterritorial jurisdiction any of the land in the district or
30-13    any proposed new district to be created by division might lie.
30-14          SECTION 7.02.  PROVISIONS RELATING TO NEW DISTRICTS.
30-15    (a)  Before the board may divide territory of the district or any
30-16    district resulting from a division under this article, the board
30-17    shall:
30-18                (1)  determine the terms of the division, including a
30-19    plan to pay and perform the outstanding obligations of the
30-20    district; and
30-21                (2)  prepare a metes and bounds description of the
30-22    proposed division.
30-23          (b)  Except as provided by Section 8.03 of this Act, if the
30-24    board divides territory under this article, the board shall be
30-25    divided in an appropriate manner consistent with the division of
30-26    the district.
30-27          (c)  Districts resulting from a division under this article
 31-1    shall be designated in an appropriate manner.  For example, if the
 31-2    district were divided into two districts, the districts shall
 31-3    become Fort Bend County Municipal Utility District 134A and Fort
 31-4    Bend County Municipal Utility District 134B.
 31-5          (d)  A district resulting from a division under this article
 31-6    must obtain authorization for the issuance of bonds payable wholly
 31-7    or partially from ad valorem taxes by a majority vote of the
 31-8    qualified voters of that district voting in an election called and
 31-9    held for that purpose.
31-10          (e)  A district resulting from a division under this article
31-11    must obtain authorization for a maintenance tax by a majority vote
31-12    of the qualified voters of that district voting in an election
31-13    called and held for that purpose.
31-14          SECTION 7.03.  APPOINTMENT AND ELECTION OF DIRECTORS. (a)  A
31-15    district resulting from a division under this article is a separate
31-16    district and is governed as a separate district.
31-17          (b)  The board shall continue to act on behalf of a newly
31-18    created district for 90 days after the date on which a division
31-19    under this article is approved for purposes of closing the
31-20    district's affairs.
31-21          (c)  The board shall appoint two initial directors for a
31-22    district resulting from a division under this article to serve
31-23    terms expiring the first Saturday in May of the first even-numbered
31-24    year after creation of the district, and three initial directors to
31-25    serve terms expiring the first Saturday in May of the second
31-26    even-numbered year after creation of the district.  A member of the
31-27    board may be appointed as a director of a district resulting from a
 32-1    division under this article.
 32-2          (d)  If a vacancy occurs on the board of directors of a
 32-3    district resulting from a division under this article, the board of
 32-4    directors of that district shall appoint a successor to serve for
 32-5    the remainder of the unexpired term.
 32-6          (e)  A successor to the board of directors of a district
 32-7    resulting from a division under this article shall be elected as
 32-8    provided by Section 2.04 of this Act.
 32-9          SECTION 7.04.  PAYMENT OF DISTRICT DEBTS. A division of
32-10    territory of the district under this article may not impair the
32-11    current obligations or bond authorizations of the district that is
32-12    divided. The debts of the district may be paid by taxes, revenues,
32-13    or assessments levied on land in the district or by contributions
32-14    from each new district resulting from a division under this article
32-15    on terms stated in the division proposed by the board under Section
32-16    7.02 of this Act.
32-17          SECTION 7.05.  AUTHORITY OF DISTRICTS RESULTING FROM
32-18    DIVISION. A district resulting from a division under this article
32-19    may incur and pay debts created by that district, has the authority
32-20    granted to the original district created under this Act, and may
32-21    enter into contracts with other districts resulting from a division
32-22    under this article for purposes of providing water and wastewater
32-23    services or other appropriate purpose.
32-24          SECTION 7.06.  ASSUMPTION OF OBLIGATIONS. A district
32-25    resulting from a division under this article shall assume the
32-26    obligations of the original district under an agreement or
32-27    resolution consenting to the creation of the district unless the
 33-1    agreement or resolution imposes obligations that limit the powers
 33-2    and authority of the district to issue bonds for a purpose
 33-3    authorized by this Act.  The remaining obligations of the original
 33-4    district shall be divided on a pro rata basis among the districts
 33-5    resulting from a division under this article based on the number of
 33-6    acres in a district or on terms agreed to by the districts
 33-7    resulting from a division under this article.
 33-8          SECTION 7.07.  NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
 33-9    COMMISSION. The district shall provide written notice of a plan to
33-10    divide the district under this article to the Texas Natural
33-11    Resource Conservation Commission not later than the 30th day after
33-12    the date on which the board decides to divide the district.
33-13            ARTICLE 8.  ANNEXATION AND DISSOLUTION OF DISTRICT
33-14          SECTION 8.01.  ANNEXATION.  (a)  Notwithstanding any other
33-15    law, the city may annex the district, including districts resulting
33-16    from a division under Article 7 of this Act, only if the city:
33-17                (1)  assumes the outstanding indebtedness of the
33-18    district or districts;
33-19                (2)  dissolves the district or districts not later than
33-20    six months after the date of annexation;
33-21                (3)  assumes the assets, including all accounts
33-22    receivable and the right to collect outstanding taxes, delinquent
33-23    taxes, and other indebtedness of the district or districts;
33-24                (4)  refrains from imposing municipal taxes on property
33-25    located within the district or districts before the dissolution of
33-26    the district or districts;
33-27                (5)  provides municipal utility, emergency medical,
 34-1    fire, police, garbage collection, and other standard municipal
 34-2    services to the residents of the district or districts at the same
 34-3    rate as is charged to residents within the municipality, or
 34-4    residents of similar developments; and
 34-5                (6)  complies with regional land use planning within
 34-6    the district.
 34-7          (b)  Notwithstanding Subsection (a)(5) of this section, a
 34-8    municipality that annexes and dissolves the district or districts
 34-9    may impose water supply fees, impact fees, and other assessments
34-10    allowed by state law on property previously located within the
34-11    district or districts, except for property that has received a
34-12    utility service allocation by the district or districts or property
34-13    in which site development has been authorized or commenced.
34-14          (c)  The district or districts shall transfer all assets of
34-15    the district or districts to a municipality that annexes and
34-16    dissolves the district or districts, as provided by instruments
34-17    approved by the municipality and district or districts.
34-18                   ARTICLE 9.  MISCELLANEOUS PROVISIONS
34-19          SECTION 9.01.  TAX EXEMPTION. The purposes stated in this Act
34-20    are for the benefit of the people of the state, including the
34-21    improvement of property and industry.  The district, in carrying
34-22    out the purposes of this Act, is performing an essential public
34-23    function under the constitution and is not required to pay a tax or
34-24    assessment on a project of the district or on the bonds or notes
34-25    issued by the district under this Act, including the transfer of,
34-26    the income from, and the profits made on the sale of issued bonds
34-27    and notes.
 35-1          SECTION 9.02.  INITIAL DIRECTORS ELECTION.  Notwithstanding
 35-2    Section 2.04 of this Act, the district shall hold its first
 35-3    election for permanent directors on the first Saturday in May 2002.
 35-4          SECTION 9.03.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
 35-5    (a)  The proper and legal notice of the intention to introduce this
 35-6    Act, setting forth the general substance of this Act, has been
 35-7    published as provided by law, and the notice and a copy of this Act
 35-8    have been furnished to all persons, agencies, officials, or
 35-9    entities to which they are required to be furnished by the
35-10    constitution and other laws of this state, including the governor,
35-11    who has submitted the notice and Act to the Texas Natural Resource
35-12    Conservation Commission.
35-13          (b)  The Texas Natural Resource Conservation Commission has
35-14    filed its recommendations relating to this Act with the governor,
35-15    lieutenant governor, and speaker of the house of representatives
35-16    within the required time.
35-17          (c)  All requirements of the constitution and laws of this
35-18    state and the rules and procedures of the legislature with respect
35-19    to the notice, introduction, and passage of this Act are fulfilled
35-20    and accomplished.
35-21          SECTION 9.04.  EFFECTIVE DATE.  This Act takes effect
35-22    immediately if it receives a vote of two-thirds of all the members
35-23    elected to each house, as provided by Section 39, Article III,
35-24    Texas Constitution.  If this Act does not receive the vote
35-25    necessary for immediate effect, this Act takes effect September 1,
35-26    2001.