1-1                                   AN ACT
 1-2     relating to the validation of the creation and to the
 1-3     administration, powers, duties, operation, and financing of the
 1-4     Hays County Water Control and Improvement District No. 2 and the
 1-5     provision of certain services in the district.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. VALIDATION OF CREATION. The creation of the Hays
 1-8     County Water Control and Improvement District No. 2 by the Hays
 1-9     County Commissioners Court on January 16, 2001, is validated,
1-10     subject to approval at a confirmation election under Chapters 49
1-11     and 51, Water Code.
1-12           SECTION 2. DEFINITION. In this Act, "district" means the Hays
1-13     County Water Control and Improvement District No. 2.
1-14           SECTION 3. BOUNDARIES. The district's boundaries are those as
1-15     found by the Hays County Commissioners Court's order creating the
1-16     district on January 16, 2001.
1-17           SECTION 4. FINDINGS RELATIVE TO BOUNDARIES. The legislature
1-18     finds that the boundaries and field notes of the district form a
1-19     closure.  A mistake in the field notes does not affect the
1-20     organization, existence, or validity of the district, the right of
1-21     the district to impose taxes, or the legality or operation of the
1-22     district or its governing body.
1-23           SECTION 5. FINDING OF BENEFIT. All of the land and other
1-24     property included within the boundaries of the district will be
 2-1     benefited by the works and projects that are to be accomplished by
 2-2     the district under powers conferred by Section 59, Article XVI,
 2-3     Texas Constitution.  The district serves a public use and benefit.
 2-4           SECTION 6. POWERS. (a)  The district has all of the rights,
 2-5     powers, privileges, authority, functions, and duties provided by
 2-6     the general law of this state, including Chapters 49, 51, and 54,
 2-7     Water Code, applicable to water control and improvement districts
 2-8     and municipal utility districts created pursuant to Section 59,
 2-9     Article XVI, Texas Constitution.  If Chapters 49, 51, and 54, Water
2-10     Code, conflict, Chapter 51 controls. This Act prevails over any
2-11     provision of general law that is in conflict or inconsistent with
2-12     this Act.
2-13           (b)  No other entity, including any public utility or retail
2-14     public utility, may expand the provision of retail water or sewer
2-15     utility service within the boundaries of the district without the
2-16     written authorization of the district or the district's successors
2-17     or assigns unless the Texas Natural Resource Conservation
2-18     Commission finds that the district or its successors or assigns is
2-19     not providing continuous and adequate service to customers in the
2-20     district.  In that  event, the commission may grant a separate
2-21     retail public utility certificate of convenience and necessity for
2-22     that part of the district where the district is not providing
2-23     continuous and adequate service.
2-24           SECTION 7. EFFECTIVE DATE; EXPIRATION DATE. (a)  This Act
2-25     takes effect immediately if it receives a vote of two-thirds of all
2-26     the members elected to each house, as provided by Section 39,
2-27     Article III, Texas Constitution.  If this Act does not receive the
 3-1     vote necessary for immediate effect, this Act takes effect
 3-2     September 1, 2001.
 3-3           (b)  If the creation of the district is not confirmed at a
 3-4     confirmation election before September 1, 2003, this Act expires on
 3-5     that date.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3629 was passed by the House on May
         5, 2001, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3629 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor