1-1     By:  Howard (Senate Sponsor - Brown)                  H.B. No. 3195
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Natural
 1-4     Resources; May 11, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 3195                   By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation, administration, powers, duties,
1-11     operation, and financing of the Fort Bend County Municipal Utility
1-12     District Number 134 and to the authorization of bonds and the levy
1-13     of taxes; providing civil penalties.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15                       ARTICLE 1.  GENERAL PROVISIONS
1-16           SECTION 1.01.  CREATION.  (a)  A conservation and reclamation
1-17     district, to be known as Fort Bend County Municipal Utility
1-18     District Number 134, is created.  The district is a governmental
1-19     agency and a body politic and corporate.
1-20           (b)  The district is created under and is essential to
1-21     accomplish the purposes of Section 59, Article XVI, Texas
1-22     Constitution.
1-23           (c)  The district has the powers of a municipal utility
1-24     district as provided by Chapter 54, Water Code, and is governed by
1-25     Chapters 49 and 54, Water Code, unless otherwise provided by this
1-26     Act.
1-27           SECTION 1.02.  DEFINITIONS.  In this Act:
1-28                 (1)  "City" means the city of Houston.
1-29                 (2)  "District" means the Fort Bend County Municipal
1-30     Utility District Number 134.
1-31                 (3)  "Board" means the board of directors of the Fort
1-32     Bend County Municipal Utility District Number 134 or a district
1-33     resulting from a division under Article 7 of this Act.
1-34           SECTION 1.03.  BOUNDARIES.  (a)  The district includes the
1-35     territory contained within the following area:
1-36           Being 2337.415 acres of land located in the William Morton
1-37     League, A-62, the Jane Wilkins League, Abstract 96, and the J.H.
1-38     Cartwright Survey, Abstract 16, Fort Bend County, Texas, more
1-39     particularly being a portion of the residue of that certain State
1-40     of Texas Department of Criminal Justice (Harlem State Farm) tract
1-41     called 5656.65 acres described by an instrument of record recorded
1-42     in Volume 152, Page 423 of the Deed Records of Fort Bend County,
1-43     Texas (F.B.C.D.R.), a portion of the residue of those certain
1-44     tracts called 437.379 acres, described as Exhibit A-13, 574.267
1-45     acres described as Exhibit A-12, and 1118.992 acres described as
1-46     Exhibit A-11, all conveyed to The State of Texas State Department
1-47     of Highways & Public Transportation by an instrument of record in
1-48     Volume 2329, Page 50 of the Official Records of Fort Bend County,
1-49     Texas (F.B.C.O.R.), said 2337.415 acres being more particularly
1-50     described in two (2) parts by metes and bounds as follows, all
1-51     bearings based on the Texas State Plane Coordinate System, South
1-52     Central Zone;
1-53                                   PART 1
1-54           BEGINNING at a 5/8-inch iron rod with TxDOT aluminum disc
1-55     found marking the northwest corner of that certain tract called
1-56     97.179 acres described as Parcel 9, conveyed to the State of Texas
1-57     for a Controlled Access Highway Facility (Grand Parkway, 300 feet
1-58     wide) by an instrument of record in Volume 2367, Page 2413
1-59     F.B.C.O.R., same being in the south line of the aforementioned
1-60     residue of 574.267 acres;
1-61           Thence, with the said south line, North 82 22'32" West,
1-62     1588.16 feet to a point for corner in the east right-of-way line of
1-63     Harlem Road, 71.5 feet wide;
1-64           Thence, South 86 53'29" West, at 71.50 feet pass the
 2-1     southeast corner of the aforementioned residue of 437.379 acres and
 2-2     the west right-of-way line of said Harlem Road, and continue with
 2-3     the south line of said residue of 437.379 acres in all a distance
 2-4     of 1782.08 feet to a point for corner;
 2-5           Thence, with the south line of said residue of 437.379 acres
 2-6     the following two (2) courses:
 2-7           1)  North 08 00'49" West, 1268.72 feet to a point for corner;
 2-8           2)  South 86 22'27" West, 1692.03 feet to a point for corner,
 2-9     same being the southwest corner of said 437.379 acres;
2-10           Thence, with the westerly line of said residue of 437.379
2-11     acres the following three (3) courses:
2-12           1)  North 02 25'57" West, 1303.62 feet to a point for corner;
2-13           2)  North 02 21'10" West, 1320.37 feet to a point for corner;
2-14           3)  North 02 08'31" West, 2220.08 feet to a point for corner
2-15     in the south line of Mortin Road (width varies);
2-16           Thence, with the common line of said residue of 437.379 acres
2-17     and Mortin Road, North 86 56'55" East, 3448.80 feet to a point for
2-18     corner in the aforementioned west right-of-way line of Harlem Road;
2-19           Thence, with said west right-of-way line of Harlem Road the
2-20     following two (2) courses:
2-21           1)  South 02 56'06" East, 1487.50 feet to a point for corner;
2-22           2)  South 03 03'53" East, 1259.36 feet to a point for corner
2-23     in the south right-of-way line of aforementioned Grand Parkway and
2-24     in the arc of a curve whose center bears South 04 45'14" West;
2-25           Thence, with said south right-of-way line of Grand Parkway
2-26     the following two (2) courses:
2-27           1)  1207.94 feet along the arc of a curve to the right having
2-28     a radius of 2664.79 feet, a central angle of 25 58'19" and a chord
2-29     which bears South 36 15'37" East, 1197.62 feet to a point for
2-30     corner at the end of said curve;
2-31           2)  South 23 24'05" East, 2809.51 feet to the POINT OF
2-32     BEGINNING and containing 509.555 acres of land.
2-33                                   PART 2
2-34           BEGINNING at a 5/8-inch iron rod with TxDOT aluminum disc
2-35     found marking the northeast corner of that certain tract called
2-36     97.179 acres described as Parcel 9, conveyed to the State of Texas
2-37     for a Controlled Access Highway Facility (Grand Parkway, 300 feet
2-38     wide) by an instrument of record in Volume 2367, Page 2413
2-39     F.B.C.O.R., same being in the south line of the aforementioned
2-40     residue of 574.267 acres;
2-41           Thence, with the easterly right-of-way line of Grand Parkway
2-42     the following two (2) courses:
2-43           1)  North 23 18'39" West, 3046.62 feet to a point for corner,
2-44     the beginning of a curve;
2-45           2)  1622.02 feet along the arc of a curve to the left having
2-46     a radius of 3064.79 feet, a central angle of 30 19'24" and a chord
2-47     which bears North 38 28'09" West, 1603.15 feet to a point for
2-48     corner;
2-49           Thence, North 35 03'02" West, 47.60 feet to a point for
2-50     corner;
2-51           Thence, North 03 04'30" West, 225.00 feet to a point for
2-52     corner;
2-53           Thence, North 06 11'01" West, 100.20 feet to a point for
2-54     corner in the east right-of-way line of Harlem Road, 71.5 feet
2-55     wide;
2-56           Thence, with said east right-of-way line, North 03 03'53"
2-57     West, 450.10 feet to a point for corner in the south right of way
2-58     line of Madden Road (width varies);
2-59           Thence, with said south right-of-way line of Madden Road the
2-60     following three (3) courses:
2-61           1)  North 87 52'53" East, 2316.95 feet to a point for corner;
2-62           2)  North 87 21'39" East, 3275.44 feet to a point for corner;
2-63           3)  North 87 28'16" East, at 54.43 feet pass an angle point
2-64     in said south right-of-way line of Madden Road and continue with
2-65     the north line of said residue of 574.267 acres in all a distance
2-66     of 762.58 feet to a point for corner in the west line of the
2-67     aforementioned residue of 1118.992 acres;
2-68           Thence, with the west line of said residue of 1118.992 acres,
2-69     North 02 10'00" West, 2584.54 feet to a point for corner in the
 3-1     south line of aforementioned Madden Road, same being the northwest
 3-2     corner of said residue of 1118.992 acres;
 3-3           Thence, with the common line of said residue of 1118.992
 3-4     acres and Madden Road, North 88 04'14" East, 4804.30 feet to a
 3-5     point for corner in the west right-of-way line of F.M. 1464, 80
 3-6     feet wide;
 3-7           Thence, with the common line of said residue of 1118.992
 3-8     acres and F.M. 1464 the following five (5) courses:
 3-9           1)  South 07 00'01" East, 725.91 feet to a point for corner;
3-10           2)  South 02 33'11" East, 8041.31 feet to a point for corner;
3-11           3)  South 87 37'59" West, 35.60 feet to a point for corner;
3-12           4)  South 02 16'30" East, 18.37 feet to a point for corner,
3-13     the beginning of a curve
3-14           5)  446.12 feet along the arc of a curve to the right having
3-15     a radius of 1834.86 feet, a central angle of 13 55'51" and a chord
3-16     which bears South 04 25'35" West, 445.03 feet to a point for corner
3-17     in the south line of said residue of 1118.992 acres;
3-18           Thence, with the south line of said residue of 1118.992 acres
3-19     the following three (3) courses:
3-20           1)  South 87 38'52" West, 1339.67 feet to a point for corner;
3-21           2)  North 02 16'32" West, 1004.04 feet to a point for corner;
3-22           3)  South 88 29'15" West, 3462.95 feet to a point for corner,
3-23     same being a reentrant corner of the aforementioned 5656.65 acres;
3-24           Thence, with an east line of said 5656.65 acres, South
3-25     02 24'27" East, 3277.78 feet to a point for corner in the
3-26     centerline of Oyster Creek;
3-27           Thence, with said centerline of Oyster Creek the following
3-28     five (5) courses:
3-29           1)  North 23 27'08" West, 390.38 feet to a point for corner,
3-30     the beginning of a curve;
3-31           2)  1062.30 feet along the arc of a curve to the left having
3-32     a radius of 950.00 feet, a central angle of 64 04'07" and a chord
3-33     which bears North 55 29'12" West, 1007.81 feet to a point for
3-34     corner at the end of said curve;
3-35           3)  North 87 31'15" West, 773.83 feet to a point for corner,
3-36     the beginning of a curve;
3-37           4)  675.89 feet along the arc of a curve to the left having a
3-38     radius of 1050.00 feet, a central angle of 36 52'54" and a chord
3-39     which bears South 74 02'18" West, 664.28 feet to a point for corner
3-40     at the end of said curve;
3-41           5)  South 55 35'51" West, 824.96 feet to a point for corner
3-42     in the easterly line of the aforementioned Grand Parkway;
3-43           Thence, with said easterly line of Grand Parkway the
3-44     following six (6) courses:
3-45           1)  North 23 17'59" West, 1559.47 feet to a point for corner;
3-46           2)  North 22 14'23" West, 840.34 feet to a point for corner;
3-47           3)  North 21 08'23" West, 508.72 feet to a point for corner;
3-48           4)  North 18 04'32" West, 396.44 feet to a point for corner;
3-49           5)  North 19 01'23" West, 397.70 feet to a point for corner;
3-50           6)  North 23 58'25" West, 4.01 feet to the POINT OF BEGINNING
3-51     and containing 1827.860 acres of land.
3-52           Said Part 1 and Part 2 containing a total of 2337.415 acres
3-53     of land.
3-54           (b)  A mistake in the patents or field notes or in copying
3-55     the patents or field notes in the legislative process does not
3-56     affect the organization, existence, or validity of the district,
3-57     the right of the district to issue bonds or refunding bonds or to
3-58     pay the principal of or interest on issued bonds, the right of the
3-59     district to levy and collect taxes, or the legality or operation of
3-60     the district or its governing board.
3-61                    ARTICLE 2.  ADMINISTRATIVE PROVISIONS
3-62           SECTION 2.01.  BOARD.  (a)  The district is governed by a
3-63     board of five directors elected as provided by Section 2.04.
3-64           (b)  Except for initial directors, directors serve staggered
3-65     four-year terms, with the terms of two or three directors expiring
3-66     September 1 of each even-numbered year.
3-67           (c)  Initial directors shall serve until permanent directors
3-68     are elected under Section 2.04 of this Act and have qualified as
3-69     required by Subsection (e) of this section.
 4-1           (d)  A director serves until the director's successor has
 4-2     qualified.
 4-3           (e)  A director must qualify to serve as required by Section
 4-4     49.055, Water Code.
 4-5           SECTION 2.02.  DIRECTOR ELIGIBILITY.  (a)  Except for initial
 4-6     directors, a person must meet the requirements of Section 54.102,
 4-7     Water Code, to be eligible to serve as a director.  A person must
 4-8     be a resident of Fort Bend County or Travis County to be eligible
 4-9     to serve as an initial director.
4-10           (b)  Notwithstanding Section 49.052, Water Code, employment
4-11     with a state agency, other than the Texas Department of
4-12     Transportation, the General Land Office, or the School Land Board,
4-13     does not disqualify a person from serving as a director.
4-14           (c)  An employee of the district may not serve as a director.
4-15           SECTION 2.03.  APPOINTMENT OF INITIAL DIRECTORS.  (a)  The
4-16     School Land Board shall appoint five initial directors as soon as
4-17     practicable after the effective date of this Act.  The School Land
4-18     Board shall appoint two initial directors to serve terms expiring
4-19     on the first Saturday in May 2002, and three initial directors to
4-20     serve terms expiring on the first Saturday in May 2004.
4-21           (b)  If a vacancy occurs, the School Land Board shall appoint
4-22     a successor to fill the vacancy and to serve the remainder of the
4-23     unexpired term.
4-24           SECTION 2.04.  ELECTION OF PERMANENT DIRECTORS.  (a)
4-25     Beginning in 2002, on the first Saturday in May of each
4-26     even-numbered year an election shall be held for the election of
4-27     the appropriate number of permanent directors.
4-28           (b)  The board shall publish notice of an election under this
4-29     section once a week for two consecutive weeks in a newspaper of
4-30     general circulation in the district beginning not later than 14
4-31     days before the date of the election.
4-32           SECTION 2.05.  MEETINGS AND BOARD ACTIONS.  (a)  The board
4-33     may establish regular meetings to conduct the business of the
4-34     district and may hold special meetings if necessary as determined
4-35     by the board.  The board shall hold a meeting under this section
4-36     within the district unless the board, by a majority vote at a
4-37     public meeting, decides to hold the meeting outside of the
4-38     district.
4-39           (b)  The board may adopt bylaws to govern the affairs of the
4-40     district. The board may provide in the bylaws that, except for
4-41     initial directors, a director shall receive compensation of $20 for
4-42     attending a meeting of the board.  A director may not be paid more
4-43     than $40 for meetings held in a calendar month.
4-44           SECTION 2.06. APPOINTMENT OF BOARD SECRETARY AND TREASURER.
4-45     The board shall appoint a secretary and treasurer.  The  secretary
4-46     and treasurer may be, but are not required to be, members of the
4-47     board.  One person may serve as both secretary and treasurer.  The
4-48     treasurer shall give bond in an amount required by the board.  The
4-49     condition of the bond shall be that the treasurer will faithfully
4-50     account for all money that comes into the custody of the treasurer.
4-51     The board shall require a bond under this section of at least
4-52     $100,000 if the district has authorized the issuance of bonds.  If
4-53     the district has not authorized the issuance of bonds, the board
4-54     shall require a bond of at least $5,000.
4-55           SECTION 2.07.  CONFLICT OF INTEREST: CONTRACT.  A director
4-56     who is financially interested in a contract that is proposed to be
4-57     executed by the board for the purchase of property or services or
4-58     for the construction of facilities shall disclose the director's
4-59     interest to the board and may not vote on the acceptance of the
4-60     contract.
4-61           SECTION 2.08.  DISTRICT EMPLOYEES.  The board may employ a
4-62     general manager and consulting engineers, financial consultants,
4-63     attorneys, and auditors.  The general manager shall be responsible
4-64     for:
4-65                 (1)  administering the board's directives;
4-66                 (2)  maintaining district records, including minutes of
4-67     board meetings;
4-68                 (3)  coordinating with federal, state, and local
4-69     agencies;
 5-1                 (4)  developing plans and programs for the board's
 5-2     approval;
 5-3                 (5)  hiring, supervising, training, and discharging the
 5-4     district's employees;
 5-5                 (6)  obtaining technical, scientific, legal, fiscal, or
 5-6     other professional services for the district; and
 5-7                 (7)  performing other duties as assigned by the board. 
 5-8           SECTION 2.09.  EMPLOYEE BONDS.  (a)  The general manager and
 5-9     each employee of the district who is charged with the collection,
5-10     custody, or payment of district money shall execute a fidelity bond
5-11     in an amount determined by the board and in a form and with a
5-12     surety approved by the board.
5-13           (b)  The district shall pay the premium on a bond under this
5-14     section.
5-15           SECTION 2.10.  PRINCIPAL OFFICE.  (a)  If the district has
5-16     not issued bonds, the district may maintain its principal office in
5-17     Fort Bend County or Travis County.  If the district maintains its
5-18     principal office in Travis County, the district shall maintain
5-19     duplicates of district records in Fort Bend County and make the
5-20     duplicate records available for inspection during regular business
5-21     hours.
5-22           (b)  If the district has issued bonds, the district shall
5-23     maintain its principal office in Fort Bend County.
5-24           SECTION 2.11.  RECORDS.  (a)  The district shall keep at its
5-25     principal office:
5-26                 (1)  a complete and accurate account of the district's
5-27     business transactions in accordance with generally accepted
5-28     accounting methods;
5-29                 (2)  a complete and accurate record of the minutes of
5-30     board meetings; and
5-31                 (3)  contracts, documents, and other records of the
5-32     district.
5-33           (b)  The district shall permit reasonable public inspection
5-34     of the district's records during regular business hours.
5-35                      ARTICLE 3.  AUTHORITY OF DISTRICT
5-36           SECTION 3.01.  POWERS AND DUTIES.  (a)  The district shall:
5-37                 (1)  administer and enforce the provisions of this Act;
5-38                 (2)  use the facilities and powers of the district to
5-39     accomplish the purposes of this Act;
5-40                 (3)  coordinate water, wastewater, and drainage
5-41     services within the district; and
5-42                 (4)  control and abate water pollution within the
5-43     district.
5-44           (b)  When designing utility infrastructure and related
5-45     systems, the district shall submit the district's design plans and
5-46     specifications for the utility infrastructure and related systems
5-47     for review and approval to the City of Houston.  The district shall
5-48     pay to the city a fee for conducting the review if the city has
5-49     established a fee that has general application for comparable
5-50     reviews.  The city shall complete the review of the design plans
5-51     and specifications not later than the 60th day after the date on
5-52     which the plans and specifications are delivered to the city.  In
5-53     constructing the utility infrastructure, the district shall meet or
5-54     exceed the city construction standards for materials and
5-55     installation specifications.
5-56           (c)  Subject to the authority of the Texas Natural Resource
5-57     Conservation Commission, the district may control and abate water
5-58     pollution within the district.  The authority of the district under
5-59     this subsection does not restrict the authority of the city to
5-60     control and abate water pollution within the district under state
5-61     or federal law.
5-62           (d)  Except as provided by this Act, the district has the
5-63     powers, rights, and privileges necessary and convenient for
5-64     accomplishing the purposes of this Act as provided by general law
5-65     relating to a municipal utility district or water control and
5-66     improvement district created under Section 59, Article XVI, Texas
5-67     Constitution.
5-68           SECTION 3.02.  DISTRICT RULES.  (a)  The district may adopt
5-69     and enforce rules reasonably required to implement this Act,
 6-1     including rules governing procedure and practice before the board. 
 6-2           (b)  The district shall keep a record of the district's rules
 6-3     and provide a copy of the rules to a person on written request.
 6-4           SECTION 3.03.  INSPECTIONS AND INVESTIGATIONS.  In addition
 6-5     to the powers provided by Section 49.221, Water Code, the district
 6-6     may enter public or private property located within the district
 6-7     for purposes of inspecting and investigating conditions of the
 6-8     property relating to the district's authorized purposes.  The
 6-9     district shall conduct an inspection or investigation in accordance
6-10     with provisions and restrictions applicable to the Texas Natural
6-11     Resource Conservation Commission.
6-12           SECTION 3.04.  HEARINGS AND ORDERS.  (a)  The board may:
6-13                 (1)  hold hearings, receive evidence from a party in
6-14     interest who appears before the board, compel the attendance of a
6-15     witness, and make findings of fact and determinations relating to
6-16     the administration of this Act or an order or rule of the board;
6-17     and
6-18                 (2)  delegate the authority to take testimony and
6-19     administer oaths in a hearing held by the district to a member of
6-20     the board or an employee of the district.
6-21           (b)  An order of the board must:
6-22                 (1)  be in the name of the district; and
6-23                 (2)  be attested to by the appropriate members of the
6-24     board under the district's rules.
6-25           SECTION 3.05.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
6-26     violates a rule, permit, or order of the district is subject to a
6-27     civil penalty of not less than $50 and not more than $1,000 for
6-28     each violation or each day of a continuing violation.
6-29           (b)  The district may sue to enjoin a threatened or present
6-30     activity or to recover the penalty in a district court in the
6-31     county in which the violation occurred.  A penalty recovered under
6-32     this subsection shall be paid to the district.
6-33           SECTION 3.06.  PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
6-34     (a)  The district may obtain water appropriation permits,
6-35     construction permits, and other water and wastewater discharge
6-36     permits from the Texas Natural Resource Conservation Commission or
6-37     from permit owners.  The district may acquire water or a water
6-38     supply from a person, firm, corporation, municipal corporation, or
6-39     public agency, the state, the United States, or any agency of the
6-40     state or the United States.  The board may contract with one or
6-41     more substantial users of water to acquire a water supply under an
6-42     agreed allocation of storage space between the district and the
6-43     user or the district may contract for the district's water supply
6-44     independently.  The district may collect, transport, process,
6-45     dispose of, and control all domestic, industrial, and communal
6-46     wastes, whether in fluid, solid, or composite state.  The district
6-47     may contract with a person, firm, corporation, municipal
6-48     corporation, or public agency, the state, the United States, or any
6-49     agency of the state or the United States for the collection,
6-50     transportation, processing, disposition, or control of domestic,
6-51     industrial, and communal wastes.  District authority under this
6-52     subsection includes the authority to enter into contracts involving
6-53     coordinated infrastructure or regional utility plans.  The district
6-54     may not unilaterally require a person, firm, corporation, municipal
6-55     corporation, public agency, or other entity to fund or construct
6-56     utility infrastructure for purposes of extending utilities to the
6-57     district.
6-58           (b)  The district may contract with the state, a
6-59     municipality, another entity created under Section 59, Article XVI,
6-60     Texas Constitution, or another entity to supply water or to provide
6-61     services relating to domestic, industrial, or commercial waste.
6-62     The district may contract with a person, a municipality, or another
6-63     entity created under Section 59, Article XVI, Texas Constitution,
6-64     to rent, lease, or operate water production, water supply, water
6-65     filtration or purification, and water supply facilities and
6-66     facilities to provide services relating to the wastes of the
6-67     person, municipality, or entity for a consideration agreed to by
6-68     the district and the person, municipality, or entity.  A contract
6-69     under this subsection may provide that the contract continues in
 7-1     effect until specified bonds or notes and refunding bonds issued in
 7-2     lieu of the bonds or notes are paid.  A municipality or entity
 7-3     described by this subsection may enter into a contract with the
 7-4     district to fix, charge, and collect fees, rates, charges, rentals,
 7-5     or other amounts for a service or facility provided under a
 7-6     contract with the district and may pledge amounts that are
 7-7     sufficient to make the payments required under the contract.
 7-8           (c)  For purposes of land use planning, the district shall
 7-9     encourage owners and developers of land located within the district
7-10     to use and develop the land and buildings in compliance with
7-11     building, housing, and fire codes, subdivision and zoning
7-12     regulations, thoroughfare, water conservation, and land use plans,
7-13     and other land development and safety regulations of the city.
7-14           SECTION 3.07.  FACILITIES.  (a)  In addition to the authority
7-15     provided by Sections 49.218 and 54.201, Water Code, the district
7-16     may purchase, construct, acquire, own, lease, operate, maintain,
7-17     repair, improve, and extend, at any location within or outside of
7-18     the district, land, or an interest in land, a work, an improvement,
7-19     a facility, a plant, equipment, or an appliance that is incident,
7-20     helpful, or necessary to provide for:
7-21                 (1)  the control, storage, preservation, transmission,
7-22     treatment, and distribution and use of storm water and floodwater,
7-23     the water of rivers and streams, and underground water for
7-24     municipal, domestic, industrial, and other beneficial uses; and
7-25                 (2)  the collection, transportation, processing,
7-26     disposition, and control of domestic, industrial, or commercial
7-27     wastes.
7-28           (b)  The district may:
7-29                 (1)  contract with a person, firm, corporation,
7-30     municipality, other entity created under Section 59, Article XVI,
7-31     Texas Constitution, municipal corporation, public agency, or other
7-32     political subdivision of the state; and
7-33                 (2)  perform any other act consistent with the powers
7-34     of the district and necessary to fulfill the purposes of this Act. 
7-35           SECTION 3.08.  USE OF PUBLIC ROADWAYS, STREETS, ALLEYS, OR
7-36     EASEMENTS.  The district may use a public roadway, street, alley,
7-37     or easement in Fort Bend County to accomplish the purposes of the
7-38     district.  The district is not required to obtain a franchise or
7-39     other governmental agreement to use a roadway, street, alley, or
7-40     easement that is owned by the city if, before using the roadway,
7-41     street, alley, or easement, the district obtains written consent of
7-42     the city to the particular use. The district shall pay a fee to a
7-43     city for the use of the roadway, street, alley, or easement that
7-44     equals the lesser of the district's pro rata share, based on actual
7-45     area encumbered, of the fair market value or the initial purchase
7-46     price for the roadway, street, alley, or easement.
7-47           SECTION 3.09.  RELOCATION OF FACILITIES.  The district may
7-48     relocate, raise, reroute, or change the grade of, or alter the
7-49     construction of, a highway, railroad, electric transmission line,
7-50     pipeline, canal, or drainage ditch, if considered necessary by the
7-51     board after successfully negotiating the terms of relocation with
7-52     the owner or operator of the facility to be relocated. The district
7-53     shall pay for any relocation, raising, rerouting, changing, or
7-54     altering under this section, unless otherwise agreed in writing by
7-55     the interested parties.  The cost of replacement is limited to the
7-56     comparable replacement of any replaced facility, less the replaced
7-57     facility's net salvage value.  The district shall follow the
7-58     procedures described by this section if a facility described by
7-59     this section has to be relocated to another easement owned and
7-60     operated by the district.
7-61                    ARTICLE 4.  GENERAL FISCAL PROVISIONS
7-62           SECTION 4.01.  DISBURSEMENT OF MONEY.  The district may
7-63     disburse money only by check, draft, order, or other instrument
7-64     signed by a person authorized in the bylaws of the district or by
7-65     board resolution.
7-66           SECTION 4.02.  FEES AND CHARGES.  The district may establish
7-67     fees and charges not to exceed the amounts necessary to enable the
7-68     district to fulfill the obligations of the district as provided by
7-69     this Act.
 8-1           SECTION 4.03.  LOANS AND GRANTS.  The district may apply for
 8-2     and receive a loan or grant from the state or the United States, or
 8-3     any agency of the state or the United States, or from a private
 8-4     entity, for purposes of exercising the powers of the district.
 8-5           SECTION 4.04.  DEPOSITORY BANKS.  (a)  District funds shall
 8-6     be deposited in a depository bank designated under Section 49.156,
 8-7     Water Code, and this section.
 8-8           (b)  Before designating at least one depository bank as
 8-9     provided by Section 49.156, Water Code, the board shall publish
8-10     notice at least once in a newspaper of general circulation in the
8-11     district to solicit applications from banks interested in serving
8-12     as a depository for the district.  The notice shall include the
8-13     time and place of the board meeting at which the board proposes to
8-14     designate a depository bank.  The board shall prescribe the term of
8-15     service of a depository bank designated under Subsection (a) of
8-16     this section.
8-17           (c)  The board shall review an application received under
8-18     Subsection (b) of this section, including examining the management
8-19     and condition of each bank submitting an application.  In reviewing
8-20     an application under this subsection, the board may consider:
8-21                 (1)  the terms and conditions proposed by a bank for
8-22     handling the district's money;
8-23                 (2)  the management of the bank; and
8-24                 (3)  the ability of the bank to handle the district's
8-25     money.
8-26           (d)  A bank is not disqualified from being a depository under
8-27     this section because an officer or a director of the bank is a
8-28     member of the board.
8-29           (e)  An officer or a director of a bank is not disqualified
8-30     from being a member of the board.
8-31           (f)  If the board does not receive an application under this
8-32     section, the board may designate a bank as depository on terms that
8-33     the board finds proper.
8-34                     ARTICLE 5.  BOND AND TAX PROVISIONS
8-35           SECTION 5.01.  TAXES; REVENUE BONDS.  (a)  For purposes of
8-36     exercising the authority of the district as provided by this Act,
8-37     the district may issue bonds or other obligations that are:
8-38                 (1)  secured by ad valorem taxes;
8-39                 (2)  secured by a pledge of all or part of the revenues
8-40     accruing to the district, including revenues received from the sale
8-41     of water or other products, the rendition of service, tolls,
8-42     charges, and any other source of revenue, other than ad valorem
8-43     taxes; and
8-44                 (3)  secured by both a pledge of all or part of the
8-45     revenues described by Subdivision (2) of this subsection and ad
8-46     valorem taxes.
8-47           (b)  An obligation issued by the district shall be authorized
8-48     by resolution of the board, issued in the name of the district,
8-49     signed by the president or vice president, attested to by the
8-50     secretary, and bear the seal of the district.  The signatures of
8-51     the president or vice president and the secretary may be printed or
8-52     lithographed on the obligation.  The seal of the district may be
8-53     impressed, printed, or lithographed on the obligation.  An
8-54     obligation issued by the district:
8-55                 (1)  shall be in a form prescribed by the board;
8-56                 (2)  may be in any denomination;
8-57                 (3)  shall mature serially or otherwise not later than
8-58     50 years from the date of issuance;
8-59                 (4)  may bear any interest rate;
8-60                 (5)  may be sold at a price and under terms determined
8-61     by the board to be the most advantageous available;
8-62                 (6)  may, in the discretion of the board, be made
8-63     callable before maturity at times and prices as provided in the
8-64     obligation;
8-65                 (7)  may be made registrable as to principal or
8-66     principal and interest; and
8-67                 (8)  may be secured by an indenture of trust with a
8-68     corporate trustee.
8-69           (c)  An obligation under this section may be issued in more
 9-1     than one series as required to carry out the purposes of this Act.
 9-2     A pledge of revenue may reserve the right to issue additional
 9-3     obligations under conditions specified on the pledge.  An
 9-4     additional obligation is on a parity with or subordinate to the
 9-5     original obligation.
 9-6           (d)  The district is an issuer for purposes of Chapter 1371,
 9-7     Government Code.
 9-8           (e)  A board resolution authorizing an obligation or a trust
 9-9     indenture under this section may include additional terms to
9-10     provide for a corporate trustee or receiver to take possession of
9-11     facilities of the district in the event of default by the district
9-12     relating to the obligation or trust indenture.  The additional
9-13     terms, if any, constitute a contract between the district and the
9-14     owner of the obligation.
9-15           (f)  The district may not issue bonds that are secured by or
9-16     otherwise encumber permanent school fund land located within the
9-17     district.
9-18           SECTION 5.02.  BOND ANTICIPATION NOTES.  The district may
9-19     issue bond anticipation notes for purposes of exercising the powers
9-20     of the district.  Bond anticipation notes may be secured by a
9-21     pledge of all or part of the revenues of the district.  The
9-22     district may authorize the issuance of bonds to pay the principal
9-23     of and interest on bond anticipation notes issued under this
9-24     section.  Bond anticipation notes shall be secured by a pledge of
9-25     all or part of the revenues of the district and may be issued on a
9-26     parity with or subordinate to outstanding bonds of the issuer.  If
9-27     the resolution or trust agreement authorizing the issuance of bond
9-28     anticipation notes contains a covenant that the notes are payable
9-29     from the proceeds of subsequently issued bonds, the district is not
9-30     required to demonstrate that the revenues that may be pledged to
9-31     the notes are sufficient to pay the principal of and interest on
9-32     the notes for purposes of receiving approval of the attorney
9-33     general or registration by the comptroller.
9-34           SECTION 5.03.  REFUNDING BONDS.  (a)  The district may issue
9-35     refunding bonds to refund outstanding bonds and interest as
9-36     authorized by this Act.
9-37           (b)  Refunding bonds may:
9-38                 (1)  be issued to refund one or more series of
9-39     outstanding bonds;
9-40                 (2)  combine the pledges for the outstanding bonds for
9-41     the security of the refunding bonds; or
9-42                 (3)  be secured by additional revenues.
9-43           (c)  Refunding bonds may be issued without holding an
9-44     election to authorize the issuance of the bonds.  The provisions of
9-45     this Act relating to the issuance of other bonds by the district,
9-46     security for the bonds, approval by the attorney general, and
9-47     remedies of the holders of the bonds apply to refunding bonds.
9-48           (d)  Refunding bonds shall be registered by the comptroller
9-49     on surrender and cancellation of the bonds to be refunded or, if
9-50     the resolution authorizing the issuance of refunding bonds provides
9-51     that the bonds shall be sold and the proceeds deposited in the bank
9-52     where the bonds to be refunded are payable, the refunding bonds may
9-53     be issued in an amount sufficient to pay the principal and interest
9-54     of the bonds to be refunded to their option or maturity date.  The
9-55     comptroller shall register the refunding bonds without concurrent
9-56     surrender and cancellation of the bonds to be refunded.
9-57           SECTION 5.04.  APPROVAL AND REGISTRATION OF BONDS.  District
9-58     bond review and approval is governed by Subchapter F, Chapter 49,
9-59     Water Code.
9-60           SECTION 5.05.  PROPERTY:  RENDITION; VALUATION; LEVY.
9-61     (a)  Except as provided by this section, the rendition and
9-62     assessment of property for taxation, the equalization of values,
9-63     and the collection of taxes for the benefit of the district shall
9-64     be conducted in accordance with the law applicable to counties to
9-65     the extent possible.
9-66           (b)  The tax assessor-collector of the county shall act as
9-67     the tax assessor-collector for the district for district property
9-68     located in the county.  The county tax assessor-collector shall
9-69     place on the county tax rolls a column or columns as necessary to
 10-1    show the taxes, including the amount of taxes, levied by the
 10-2    district, based on the value of the property as approved and
 10-3    equalized.  The fee charged by the county tax assessor-collector
 10-4    for assessing and collecting taxes is one percent of the taxes
 10-5    collected and shall be paid and disbursed by the district in the
 10-6    same manner as other fees of office.
 10-7          (c)  The mechanisms available to enforce the collection of
 10-8    state and county taxes may be used by the district to enforce the
 10-9    collection of taxes levied by the district.  The district is
10-10    entitled to require the county officers to enforce and collect the
10-11    taxes due to the district as provided for the enforcement of state
10-12    and county taxes.
10-13          (d)  Taxes assessed and levied for the benefit of the
10-14    district are payable and become delinquent at the same time, in the
10-15    same manner, and subject to the same discount for advance payment
10-16    as taxes levied by and for the benefit of the county in which the
10-17    property is taxable.  The fee for collecting delinquent taxes
10-18    through prosecution of suit is 15 percent of the taxes collected by
10-19    the suit, to be paid and disbursed by the district in the same
10-20    manner as other fees of office.
10-21          (e)  At the same time that the commissioners court levies
10-22    county taxes, the board shall levy a tax on all taxable property in
10-23    the district that is subject to taxation.  The board shall
10-24    immediately certify the tax rate to the tax assessor-collector of
10-25    each county that contains territory within the district.
10-26          (f)  The district may not impose an impact fee or special
10-27    assessment on the property, equipment, right-of-way, facility, or
10-28    improvement of an electric utility or power generation company as
10-29    defined by Section 31.002, Utilities Code, or a gas utility as
10-30    defined by Section 101.003 or 121.001, Utilities Code.  This
10-31    subsection does not prevent the district from levying and
10-32    collecting ad valorem taxes on land owned by a utility.
10-33                ARTICLE 6.  ADDITION AND EXCLUSION OF LAND
10-34          SECTION 6.01.  ANNEXATION.  The district may add territory as
10-35    provided by Sections 6.02, 6.03, and 6.04 of this Act.
10-36          SECTION 6.02.  PETITION TO ADD LAND.  (a)  An owner or owners
10-37    of land, whether or not contiguous to the territory of the
10-38    district, may file with the board a petition requesting that the
10-39    land described in the petition by metes and bounds or by lot and
10-40    block number, if there is a recorded plat of the area, be included
10-41    in the district.
10-42          (b)  A petition under Subsection (a) of this section must be
10-43    signed and executed in the manner provided by law for the
10-44    conveyance of real estate.
10-45          (c)  A petition requesting that the district annex a defined
10-46    area must be filed with the secretary of the board and must be
10-47    signed by:
10-48                (1)  a majority in value of the owners of land in the
10-49    defined area, as shown by the tax rolls of the county or counties
10-50    in which the defined area is located, if the number of landowners
10-51    in the defined area is 50 or less; or
10-52                (2)  50 landowners if the number of landowners in the
10-53    defined area is more than 50.
10-54          (d)  The board shall hear and consider a petition received
10-55    under Subsection (a) of this section and may add to the district
10-56    the land described in the petition if:
10-57                (1)  the board determines that adding the land to the
10-58    district is advantageous to the district; and
10-59                (2)  the water system and other improvements of the
10-60    district are sufficient or will be sufficient to provide service to
10-61    the land added to the district without injuring the land in the
10-62    district before the petition is granted.
10-63          SECTION 6.03.  NOTICE AND HEARING.  (a)  The board shall
10-64    issue an order setting a time and place to hear a petition filed
10-65    under Section 6.02 of this Act.  The hearing shall be held not
10-66    earlier than the 15th day after the date on which the board issues
10-67    the order.
10-68          (b)  The secretary shall issue a notice providing the time
10-69    and place of the hearing set under Subsection (a) of this section
 11-1    and describing the area proposed to be annexed.  Notice of the
 11-2    hearing shall be given by:
 11-3                (1)  posting copies of the notice in three public
 11-4    places in the district and in one public place in the area proposed
 11-5    to be annexed for at least seven days before the date of the
 11-6    hearing; and
 11-7                (2)  publishing a copy of the notice in a newspaper of
 11-8    general circulation in the county or counties in which the area
 11-9    proposed to be annexed is located at least seven days before the
11-10    date of the hearing.
11-11          (c)  If the board finds that the proposed annexation  is
11-12    feasible and practicable and would benefit the district and the
11-13    area proposed to be added to the district, the board may by order
11-14    receive all or a part of the proposed area as an addition to and
11-15    part of the district.  An order issued by the board under this
11-16    subsection shall describe the area added to the district and be
11-17    entered in the minutes.
11-18          SECTION 6.04.  ANNEXATION ORDER.  (a)  A copy of the order
11-19    adding land to the district shall be signed by a majority of the
11-20    members of the board, attested to by the secretary of the board,
11-21    and filed and recorded in the deed records of the county or
11-22    counties in which the district is located.
11-23          (b)  On the date that the order is recorded as required by
11-24    Subsection (a) of this section, the area described in the order is
11-25    included in the territory of the district.
11-26          SECTION 6.05.  PETITION TO EXCLUDE LAND.  A petition to
11-27    exclude land from the district must specifically describe the land
11-28    to be excluded by metes and bounds or by reference to a plat
11-29    recorded in the plat records of the county or counties in which the
11-30    land is located.  The petition must be signed by at least 10
11-31    percent of the owners of land in the area to be excluded or, if the
11-32    number of owners of land is more than 50, by at least five of the
11-33    owners of land.  The petition must be filed with the district
11-34    before the seventh day preceding the date the hearing is held to
11-35    consider the petition.  The petition must clearly state the grounds
11-36    supporting the exclusion of the land from the district.  The board
11-37    may consider only the grounds stated in the petition.
11-38          SECTION 6.06.  NOTICE AND HEARING.  (a)  The board may order
11-39    a hearing to be held to exclude land from the district on petition
11-40    of a landowner or on motion of the board if there is no outstanding
11-41    board order relating to an election for the authorization of bonds
11-42    payable in whole or in part from taxes and the district does not
11-43    have outstanding indebtedness secured by taxes or net revenues of
11-44    the district.
11-45          (b)  Notice of hearing under this section shall be published
11-46    by the board once a week for two consecutive weeks in one or more
11-47    newspapers of general circulation in the district.  The first
11-48    notice shall be published not earlier than the 40th day or later
11-49    than the 14th day preceding the date of the hearing.
11-50          (c)  The board may not exclude land from the district unless
11-51    the board determines that:
11-52                (1)  the district has no obligations that will be
11-53    impaired by the exclusion of the land;
11-54                (2)  the district will incur no obligations as a result
11-55    of the exclusion; and
11-56                (3)  the exclusion is in the best interests of the
11-57    district.
11-58          (d)  The board, after considering all engineering data and
11-59    other evidence presented at the hearing and making the
11-60    determinations required by Subsection (c) of this section, shall
11-61    enter an order excluding the land from the district and redefining
11-62    the boundaries of the district as appropriate.  If land proposed to
11-63    be excluded contains water or wastewater customers of the district,
11-64    the customers remain customers of the district.  Owners of lots
11-65    within the land proposed to be excluded in which water and
11-66    wastewater facilities have been extended retain the right to
11-67    connect to the district's water and wastewater system and become
11-68    district customers.
11-69          SECTION 6.07.  EFFECTIVE DATE OF ORDER EXCLUDING LAND.
 12-1    (a)  Except as provided by Subsection (c) of this section, an order
 12-2    of the board excluding land from the district on petition signed by
 12-3    the owner or owners of land that is proposed to be excluded takes
 12-4    effect on the date on which the board enters the order.
 12-5          (b)  Except as provided by Subsection (c) of this section, an
 12-6    order excluding land from the district on petition signed by less
 12-7    than all the owners of land that is proposed to be excluded takes
 12-8    effect:
 12-9                (1)  on the day immediately following the date on which
12-10    a petition under Section 6.08 of this Act must be received by the
12-11    board if the district does not receive a petition under that
12-12    section; or
12-13                (2)  on the day immediately following the date on which
12-14    the election returns are canvassed if the exclusion is ratified at
12-15    an election under Section 6.08 of this Act.
12-16          (c)  An order excluding land from the district under this
12-17    section may not take effect unless all taxes levied and assessed by
12-18    the district within the land that is proposed to be excluded are
12-19    paid in full.
12-20          SECTION 6.08.  PETITION FOR RATIFICATION ELECTION.  (a)  If
12-21    the board issues an order excluding land on petition signed by less
12-22    than all the owners of land in the area proposed to be excluded,
12-23    the board shall publish a notice that describes the excluded land
12-24    and states that the exclusion  will become final unless the board
12-25    receives, not later than the 25th day after the date on which the
12-26    board issues the order, a petition requesting a ratification
12-27    election.  A petition under this subsection must be signed by at
12-28    least 10 percent of the qualified voters residing in the area that
12-29    is proposed to be excluded from the district.
12-30          (b)  If the board receives a petition under Subsection (a) of
12-31    this section, the order excluding land from the district is not
12-32    effective unless the exclusion is approved by a majority vote of
12-33    the residents of the district at a ratification election held for
12-34    that purpose.
12-35          (c)  A ratification election, including notice of the
12-36    election and the qualifications of the voters, shall be conducted
12-37    as provided by Subchapter J, Chapter 49, Water Code.
12-38                     ARTICLE 7.  DIVISION OF DISTRICT
12-39          SECTION 7.01.  CONDITIONS OF DIVISION.  (a)  The board may
12-40    divide the territory of the district into two or more districts if
12-41    the district does not have outstanding indebtedness secured by
12-42    taxes or net revenues.  The board may not divide the territory of
12-43    the district if the division results in a district with territory
12-44    of less than 100 acres.  On petition of a landowner or on motion of
12-45    the board, the board may consider a proposal to divide the original
12-46    district or any district subsequently created by division.
12-47          (b)  The board may not divide territory of the district if
12-48    the division results in numerous utility providers within the
12-49    original territory of the district.  The board may divide territory
12-50    of the district for purposes of encouraging and promoting orderly
12-51    development within the original territory of the district and
12-52    facilitating dependable and efficient utility service at affordable
12-53    rates to customers of the district.
12-54          (c)  Creation of new districts by division of the district or
12-55    any districts resulting from the divisions of the district must be
12-56    accomplished in compliance with other applicable law, including the
12-57    necessity of obtaining any consent from any municipality in whose
12-58    extraterritorial jurisdiction any of the land in the district or
12-59    any proposed new district to be created by division might lie.
12-60          SECTION 7.02.  PROVISIONS RELATING TO NEW DISTRICTS.
12-61    (a)  Before the board may divide territory of the district or any
12-62    district resulting from a division under this article, the board
12-63    shall:
12-64                (1)  determine the terms of the division, including a
12-65    plan to pay and perform the outstanding obligations of the
12-66    district; and
12-67                (2)  prepare a metes and bounds description of the
12-68    proposed division.
12-69          (b)  Except as provided by Section 8.03 of this Act, if the
 13-1    board divides territory under this article, the board shall be
 13-2    divided in an appropriate manner consistent with the division of
 13-3    the district.
 13-4          (c)  Districts resulting from a division under this article
 13-5    shall be designated in an appropriate manner.  For example, if the
 13-6    district were divided into two districts, the districts shall
 13-7    become Fort Bend County Municipal Utility District 134A and Fort
 13-8    Bend County Municipal Utility District 134B.
 13-9          (d)  A district resulting from a division under this article
13-10    must obtain authorization for the issuance of bonds payable wholly
13-11    or partially from ad valorem taxes by a majority vote of the
13-12    qualified voters of that district voting in an election called and
13-13    held for that purpose.
13-14          (e)  A district resulting from a division under this article
13-15    must obtain authorization for a maintenance tax by a majority vote
13-16    of the qualified voters of that district voting in an election
13-17    called and held for that purpose.
13-18          SECTION 7.03.  APPOINTMENT AND ELECTION OF DIRECTORS. (a)  A
13-19    district resulting from a division under this article is a separate
13-20    district and is governed as a separate district.
13-21          (b)  The board shall continue to act on behalf of a newly
13-22    created district for 90 days after the date on which a division
13-23    under this article is approved for purposes of closing the
13-24    district's affairs.
13-25          (c)  The board shall appoint two initial directors for a
13-26    district resulting from a division under this article to serve
13-27    terms expiring the first Saturday in May of the first even-numbered
13-28    year after creation of the district, and three initial directors to
13-29    serve terms expiring the first Saturday in May of the second
13-30    even-numbered year after creation of the district.  A member of the
13-31    board may be appointed as a director of a district resulting from a
13-32    division under this article.
13-33          (d)  If a vacancy occurs on the board of directors of a
13-34    district resulting from a division under this article, the board of
13-35    directors of that district shall appoint a successor to serve for
13-36    the remainder of the unexpired term.
13-37          (e)  A successor to the board of directors of a district
13-38    resulting from a division under this article shall be elected as
13-39    provided by Section 2.04 of this Act.
13-40          SECTION 7.04.  PAYMENT OF DISTRICT DEBTS. A division of
13-41    territory of the district under this article may not impair the
13-42    current obligations or bond authorizations of the district that is
13-43    divided. The debts of the district may be paid by taxes, revenues,
13-44    or assessments levied on land in the district or by contributions
13-45    from each new district resulting from a division under this article
13-46    on terms stated in the division proposed by the board under Section
13-47    7.02 of this Act.
13-48          SECTION 7.05.  AUTHORITY OF DISTRICTS RESULTING FROM
13-49    DIVISION. A district resulting from a division under this article
13-50    may incur and pay debts created by that district, has the authority
13-51    granted to the original district created under this Act, and may
13-52    enter into contracts with other districts resulting from a division
13-53    under this article for purposes of providing water and wastewater
13-54    services or other appropriate purpose.
13-55          SECTION 7.06.  ASSUMPTION OF OBLIGATIONS. A district
13-56    resulting from a division under this article shall assume the
13-57    obligations of the original district under an agreement or
13-58    resolution consenting to the creation of the district unless the
13-59    agreement or resolution imposes obligations that limit the powers
13-60    and authority of the district to issue bonds for a purpose
13-61    authorized by this Act.  The remaining obligations of the original
13-62    district shall be divided on a pro rata basis among the districts
13-63    resulting from a division under this article based on the number of
13-64    acres in a district or on terms agreed to by the districts
13-65    resulting from a division under this article.
13-66          SECTION 7.07.  NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
13-67    COMMISSION. The district shall provide written notice of a plan to
13-68    divide the district under this article to the Texas Natural
13-69    Resource Conservation Commission not later than the 30th day after
 14-1    the date on which the board decides to divide the district.
 14-2            ARTICLE 8.  ANNEXATION AND DISSOLUTION OF DISTRICT
 14-3          SECTION 8.01.  ANNEXATION.  (a)  Notwithstanding any other
 14-4    law, the city may annex the district, including districts resulting
 14-5    from a division under Article 7 of this Act, only if the city:
 14-6                (1)  assumes the outstanding indebtedness of the
 14-7    district or districts;
 14-8                (2)  dissolves the district or districts not later than
 14-9    six months after the date of annexation;
14-10                (3)  assumes the assets, including all accounts
14-11    receivable and the right to collect outstanding taxes, delinquent
14-12    taxes, and other indebtedness of the district or districts;
14-13                (4)  refrains from imposing municipal taxes on property
14-14    located within the district or districts before the dissolution of
14-15    the district or districts;
14-16                (5)  provides municipal utility, emergency medical,
14-17    fire, police, garbage collection, and other standard municipal
14-18    services to the residents of the district or districts at the same
14-19    rate as is charged to residents within the municipality, or
14-20    residents of similar developments; and
14-21                (6)  complies with regional land use planning within
14-22    the district.
14-23          (b)  Notwithstanding Subsection (a)(5) of this section, a
14-24    municipality that annexes and dissolves the district or districts
14-25    may impose water supply fees, impact fees, and other assessments
14-26    allowed by state law on property previously located within the
14-27    district or districts, except for property that has received a
14-28    utility service allocation by the district or districts or property
14-29    in which site development has been authorized or commenced.
14-30          (c)  The district or districts shall transfer all assets of
14-31    the district or districts to a municipality that annexes and
14-32    dissolves the district or districts, as provided by instruments
14-33    approved by the municipality and district or districts.
14-34                   ARTICLE 9.  MISCELLANEOUS PROVISIONS
14-35          SECTION 9.01.  TAX EXEMPTION. The purposes stated in this Act
14-36    are for the benefit of the people of the state, including the
14-37    improvement of property and industry.  The district, in carrying
14-38    out the purposes of this Act, is performing an essential public
14-39    function under the constitution and is not required to pay a tax or
14-40    assessment on a project of the district or on the bonds or notes
14-41    issued by the district under this Act, including the transfer of,
14-42    the income from, and the profits made on the sale of issued bonds
14-43    and notes.
14-44          SECTION 9.02.  INITIAL DIRECTORS ELECTION.  Notwithstanding
14-45    Section 2.04 of this Act, the district shall hold its first
14-46    election for permanent directors on the first Saturday in May 2002.
14-47          SECTION 9.03.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
14-48    (a)  The proper and legal notice of the intention to introduce this
14-49    Act, setting forth the general substance of this Act, has been
14-50    published as provided by law, and the notice and a copy of this Act
14-51    have been furnished to all persons, agencies, officials, or
14-52    entities to which they are required to be furnished by the
14-53    constitution and other laws of this state, including the governor,
14-54    who has submitted the notice and Act to the Texas Natural Resource
14-55    Conservation Commission.
14-56          (b)  The Texas Natural Resource Conservation Commission has
14-57    filed its recommendations relating to this Act with the governor,
14-58    lieutenant governor, and speaker of the house of representatives
14-59    within the required time.
14-60          (c)  All requirements of the constitution and laws of this
14-61    state and the rules and procedures of the legislature with respect
14-62    to the notice, introduction, and passage of this Act are fulfilled
14-63    and accomplished.
14-64          SECTION 9.04.  EFFECTIVE DATE.  This Act takes effect
14-65    immediately if it receives a vote of two-thirds of all the members
14-66    elected to each house, as provided by Section 39, Article III,
14-67    Texas Constitution.  If this Act does not receive the vote
14-68    necessary for immediate effect, this Act takes effect September 1,
14-69    2001.
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