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. 15-1 * * * * *