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.