1-1                                   AN ACT
 1-2     relating to the creation, administration, powers, duties,
 1-3     operation, and financing of the Lake Granbury Water Improvement
 1-4     District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. CREATION. (a)  A conservation and reclamation
 1-7     district, to be known as the Lake Granbury Water Improvement
 1-8     District, is created in Hood County, subject to approval at a
 1-9     confirmation election under Section 10 of this Act. The district is
1-10     a governmental agency and a body politic and corporate.
1-11           (b)  The district is created under and is essential to
1-12     accomplish the purposes of Section 59, Article XVI, Texas
1-13     Constitution.
1-14           SECTION 2.  DEFINITIONS.  In this Act:
1-15                 (1)  "Board" means the board of directors of the
1-16     district.
1-17                 (2)  "District" means the Lake Granbury Water
1-18     Improvement District.
1-19                 (3)  "Retail sewer utility" means any person,
1-20     corporation, public utility, water supply or sewer service
1-21     corporation, municipality, political subdivision, or agency
1-22     operating, maintaining, or controlling in this state facilities for
1-23     providing sewer service for compensation.
1-24           SECTION 3.  BOUNDARIES.  The district includes the territory
 2-1     contained within the following area:
 2-2     BEGINNING at a point at the Northeast corner of the Hood County,
 2-3     Texas line and the Northwest corner of the Johnson County, Texas
 2-4     line, also being on the South line of Parker County, Texas;
 2-5     THENCE, South along the East line of Hood County and the West line
 2-6     of Johnson County to a point in the south of line of the R.B. Berry
 2-7     Survey, Hood County Abstract No. 765 and Johnson County Abstract
 2-8     No. 985, this point being located in a north line of the W. Mann
 2-9     Survey, Hood County Abstract No. 780 and Johnson County Abstract
2-10     No. 1120;
2-11     THENCE, West along the south line of said Berry Survey and a north
2-12     line of said Mann Survey to the southwest corner of said Berry
2-13     Survey;
2-14     THENCE, North along the west line of said Berry Survey and an east
2-15     line of said Mann Survey to the most northerly northeast corner of
2-16     said Mann Survey;
2-17     THENCE, West along the north line of said Mann Survey and the north
2-18     line of the J.R. Sykes Survey, Abstract No. 344 and the south line
2-19     of the J.F. McGee Survey, Abstract No. 388 and the north line of
2-20     the W. Williams Survey, Abstract No. 677 to the southwest corner of
2-21     said McGee Survey, this point being an interior corner of said W.
2-22     Williams Survey;
2-23     THENCE, North along the west line of said McGee Survey and an east
2-24     line of said W. Williams Survey to the northwest corner of said
2-25     McGee Survey and the most northerly northeast corner of said W.
2-26     Williams Survey;
2-27     THENCE, West along the north line of said W. Williams Survey to the
 3-1     northwest corner of said W. Williams Survey;
 3-2     THENCE, South along the most westerly west line of said W. Williams
 3-3     Survey to a point in the north line of the J.C. Berry Survey,
 3-4     Abstract No. 776;
 3-5     THENCE, East along a south line of said W. Williams Survey and the
 3-6     north line of said J.C. Berry Survey to the northeast corner of
 3-7     said J.C. Berry Survey, this point being an interior corner of said
 3-8     W. Williams Survey;
 3-9     THENCE, South along the east line of said J.C Berry Survey and a
3-10     west line of said W. Williams Survey to the southeast corner of
3-11     said J.C. Berry Survey, this point being the northeast corner of
3-12     the J.C. Stewart Survey, Abstract No. 774;
3-13     THENCE, West along the south line of said J.C. Berry Survey and the
3-14     north line of said Stewart Survey and the north line of the C.H.
3-15     Strong Survey, Abstract No. 742 to the northwest corner of said
3-16     Strong Survey;
3-17     THENCE, South along the west line of said C.H. Strong Survey and
3-18     the east line of the J. Loughbridge Survey, Abstract No. 338 and
3-19     the east line of the J.R. Loughbridge Survey, Abstract No. 337 and
3-20     a west line of the D.L. Middleton Survey, Abstract No. 732 to the
3-21     southeast corner of said J.R. Loughbridge Survey, this point being
3-22     an interior corner of said D.L. Middleton Survey;
3-23     THENCE, West along the south line of said J.R. Loughbridge Survey
3-24     to the most westerly west line of said D.L. Middleton Survey, this
3-25     point being the northeast corner of the O.P. Hutchison Survey,
3-26     Abstract No. 768;
3-27     THENCE, South along the east line of said Hutchison Survey and the
 4-1     most westerly west line of said D.L. Middleton to the northwest
 4-2     corner of a 111.5 acre tract of land described in the deed recorded
 4-3     in Volume 64, Page 99, Deed Records, Hood County, Texas;
 4-4     THENCE, South 82 degrees East along the north line of said 111.5
 4-5     acre tract to a point in the most westerly east line of said D.L.
 4-6     Middleton Survey;
 4-7     THENCE, South along the most westerly east line of said D.L.
 4-8     Middleton Survey to the most southerly southeast corner of said
 4-9     D.L. Middleton Survey, this point being located in the north line
4-10     of the E.C. Hull Survey, Abstract No. 243;
4-11     THENCE, West along the south line of said D.L. Middleton Survey and
4-12     the north line of said E.C. Hull Survey to the northwest corner of
4-13     said E.C. Hull Survey, this point being located in the east line of
4-14     said Hutchison Survey;
4-15     THENCE, South along the west line of said E.C. Hull Survey and the
4-16     east line of said Hutchison Survey to the southeast corner of said
4-17     Hutchison Survey, this point being located in the northwest line of
4-18     the Washington Howard Survey, Abstract No. 244;
4-19     THENCE, Northeast along the northwest line of said Howard Survey to
4-20     the northeast corner of said Howard Survey, this point being an
4-21     interior corner of said E.C. Hull Survey;
4-22     THENCE, Southeasterly along the northeast line of said Howard
4-23     Survey to the most southerly southwest corner of said E.C. Hull
4-24     Survey, this point being the northwest corner of the E.D Crouch
4-25     Survey, Abstract No. 99;
4-26     THENCE, East along the south line of said E.C. Hull Survey and the
4-27     north line of said Crouch Survey and the south line of the D. Hull
 5-1     Survey, Abstract No. 241 to the southeast corner of said D. Hull
 5-2     Survey, this point being located in the west line of the David Hull
 5-3     Survey, Abstract No. 242;
 5-4     THENCE, South along the west line of said David Hull Survey,
 5-5     Abstract No. 242 and the west line of the D.L. Middleton Survey,
 5-6     Abstract No. 733 to the southwest corner of said D.L. Middleton
 5-7     Survey;
 5-8     THENCE, East along the south line of said D.L. Middleton Survey and
 5-9     the south line of the J.F. Randel Survey, Hood County Abstract No.
5-10     856 and Johnson County Abstract No. 733 to a point in the common
5-11     east line of Hood County and west line of Johnson County, Texas;
5-12     THENCE, South along said Hood/Johnson County line crossing the
5-13     Brazos River at the northerly side of Cordova Bend and the
5-14     northerly line of the James Moore Survey, Abstract No. 344,
5-15     continuing along said Hood/Johnson County line, to the Brazos River
5-16     at the southerly side of Cordova Bend and the southerly line of
5-17     said Moore Survey;
5-18     THENCE, Southwesterly along the meanders of the Brazos River and
5-19     the southerly line of said Moore Survey, passing the northeast
5-20     corner of the Thomas E. Tucker Survey, Abstract No. 566, continuing
5-21     along said Brazos River to the common south line of Hood County and
5-22     the north line of Somervell County, Texas;
5-23     THENCE, West along the Hood/Somervell County line, across Mitchell
5-24     Bend, to a point in the Brazos River on the east side of Cox Bend;
5-25     THENCE, Northwesterly along the meanders of said Brazos River to a
5-26     point of the west side of Cox Bend at the above mentioned
5-27     Hood/Somervell County line;
 6-1     THENCE, West along said Hood/Somervell County line to the northeast
 6-2     corner of the W.B. Smith Survey, Somervell County Abstract No. 90,
 6-3     this point being in the south line of the John C. Grace Survey,
 6-4     Hood County Abstract No. 203, this point also being an angle point
 6-5     on the said Hood/Somervell County line;
 6-6     THENCE, South 60 degrees West along the said Hood/Somervell County
 6-7     line and the south line of said Grace Survey to the southwest
 6-8     corner of said Grace Survey, this point being the southeast corner
 6-9     of the James D. Elliot Survey, Hood County Abstract No. 170;
6-10     THENCE, North 30 degrees West along the southwesterly line of said
6-11     John C. Grace Survey and the northeasterly line of said J.D. Elliot
6-12     Survey to the northwest corner of said Grace Survey and the
6-13     northeast corner of said Elliott Survey, this point being located
6-14     in the southeast line of the John C. Grace Survey, Abstract No.
6-15     190;
6-16     THENCE, South 60 degrees West along the southeast line of said
6-17     Grace Survey, Abstract No. 190, to the southwest corner of said
6-18     Grace Survey, this point being the southeast corner of the Richard
6-19     Disney Survey, Abstract No. 144;
6-20     THENCE, North 30 degrees West along the southwesterly line of said
6-21     Grace Survey to the northwest corner of said Grace Survey and the
6-22     northeast corner of said Disney Survey, this point being located in
6-23     the southeasterly line of the Felix C. Cattonet Survey, Abstract
6-24     No. 92;
6-25     THENCE, South 60 degrees West along the southeasterly line of said
6-26     Cattonet Survey and the northwesterly line of said Disney Survey
6-27     and the northwesterly line of the William R. Carey Survey, Abstract
 7-1     No. 85, to the southeast corner of the George Gordon tract of land,
 7-2     this point being located in the southeasterly line of the J.O.
 7-3     Morris Survey, Abstract No. 347;
 7-4     THENCE, North 30 degrees West 410 varas along the northeasterly
 7-5     line of said Gordon tract to the northeast corner of said Gordon
 7-6     tract;
 7-7     THENCE, South 60 degrees West 540 varas along the northwesterly
 7-8     line of said Gordon tract to the northwest corner of said Gordon
 7-9     tract, this point being located in the southwesterly line of said
7-10     Morris Survey and the northeasterly line of the P.S. Hughlett
7-11     Survey, Abstract No. 257;
7-12     THENCE, North 30 degrees West along the northeasterly line of said
7-13     Hughlett Survey and the southwesterly line of said Morris Survey to
7-14     a point in the State Highway No. 51-Paluxy Highway;
7-15     THENCE, North 26 degrees East 1,275 varas along said highway,
7-16     crossing the northwesterly line of said Morris Survey and the
7-17     southeasterly line of the William Harper Survey, Abstract No. 254,
7-18     to a point in the northeasterly line of said Harper Survey,
7-19     Abstract No. 254, this point being located in the southwesterly
7-20     line of the William Harper Survey, Abstract No. 258;
7-21     THENCE, North 30 degrees West, 2,165 varas to the northeast corner
7-22     of said Harper Survey, Abstract No. 254 and the northwest corner of
7-23     said Harper Survey, Abstract No. 258, this point also being the
7-24     most southerly southwest corner of the Thomas W. Bundick Survey,
7-25     Abstract No. 24;
7-26     THENCE, North 60 degrees East 520 varas along the northwesterly
7-27     line of said Harper Survey, Abstract No. 258 to the most southerly
 8-1     southeast corner of said Bundick Survey, Abstract No. 24, this
 8-2     point also being the southwest corner of the Jonathan Shaw Survey,
 8-3     Abstract No. 514;
 8-4     THENCE, North 30 degrees West 950 varas along the northeasterly
 8-5     line of said Bundick Survey, Abstract No. 24 and the southwesterly
 8-6     line of said Shaw Survey, Abstract No. 514 to the northwest corner
 8-7     of said Shaw Survey, Abstract No. 514;
 8-8     THENCE, North 60 degrees East 1,930 varas along the northwesterly
 8-9     line of said Shaw Survey, Abstract No. 514 and the northwesterly
8-10     line of the Jonathan Shaw Survey, Abstract No. 513 and the
8-11     southeasterly line of the C. Arrington Survey, Abstract No. 10 to
8-12     the northeast corner of said Shaw Survey, Abstract No. 513 and the
8-13     southeast corner of said C. Arrington Survey, this point being in
8-14     the southwesterly line of the Thomas W. Bundick Survey, Abstract
8-15     No. 23;
8-16     THENCE, North 30 degrees West along the northeasterly line of said
8-17     C. Arrington Survey and the southwesterly line of said Bundick
8-18     Survey, Abstract No. 23 to the northeast corner of said C.
8-19     Arrington Survey and the northwest corner of said Bundick Survey,
8-20     Abstract No. 23, this point being in the southeasterly line of the
8-21     W.J. Arrington Survey, Abstract No. 18;
8-22     THENCE, North 60 degrees East along the southeasterly line of said
8-23     W.J. Arrington Survey and the northwesterly line of said Bundick
8-24     Survey, Abstract No. 23 to the southeast corner of said W.J.
8-25     Arrington Survey;
8-26     THENCE, North 30 degrees West along the northeasterly line of said
8-27     W.J. Arrington Survey to the northeast corner of said W.J.
 9-1     Arrington Survey, this point being in the southeasterly line of the
 9-2     E.T. Gatlin Survey, Abstract No. 211;
 9-3     THENCE, South 60 degrees West along the northwesterly line of said
 9-4     W.J. Arrington Survey and the southeasterly line of said Gatlin
 9-5     Survey and the southeasterly line of the T.W. Arrington Survey,
 9-6     Abstract No. 17 and the northwesterly line of the aforementioned
 9-7     Thomas W. Bundick Survey, Abstract No. 24 to the southwest corner
 9-8     of said T.W. Arrington and the most easterly southeast corner of
 9-9     the James S. Turner Survey, Abstract No. 557;
9-10     THENCE, North 30 degrees West along the most easterly northeast
9-11     line of said J. S. Turner Survey, passing the most easterly
9-12     northeast corner of said J.S. Turner Survey and crossing the L.E.
9-13     Earnest Survey, Abstract No. 883 and crossing the I.W. Walley
9-14     Survey, Abstract No. 870 to a point in the northwesterly line of
9-15     said Walley Survey;
9-16     THENCE, South 60 degrees West 1,006 varas along the northwesterly
9-17     line of said Walley Survey and the most northerly northwest line of
9-18     said Earnest Survey and the most northerly northwest line of said
9-19     J.S. Turner Survey and the southeasterly line of the Willis
9-20     Phillips Survey, Abstract No. 196, to the southwest corner of the
9-21     J. Menefee tract of land out of the said Phillips Survey and the
9-22     Thomas P. Helm Survey, Abstract No. 253;
9-23     THENCE, North 30 degrees West 699 varas along the southwesterly
9-24     line of said J. Menefee tract, crossing the southeasterly line of
9-25     said Helm Survey, to the northwesterly corner of said J. Menefee
9-26     tract;
9-27     THENCE, North 60 degrees East 370 varas along the northwesterly
 10-1    line of said J. Menefee tract to the northeasterly corner of said
 10-2    J. Menefee tract, this point being located in the northeasterly
 10-3    line of said Helm Survey and the most easterly southwest line of
 10-4    said Phillips Survey;
 10-5    THENCE, North 30 degrees West 250 varas along the northeast line of
 10-6    said Helm Survey and the most easterly southwest line of said
 10-7    Phillips Survey to the most northerly northwest corner of said
 10-8    Phillips Survey, this point being the most easterly southwest
 10-9    corner of the J.M Ybardo Survey, Abstract No. 750;
10-10    THENCE, North 60 degrees East 500 varas along the southeast line of
10-11    said Ybardo Survey and the most northerly northwest line of said
10-12    Phillips Survey to the northeast corner of said Phillips Survey and
10-13    the northwest corner of the S. Ruyle Survey, Abstract No. 825;
10-14    THENCE, North 30 degrees West, 1,150 varas to a post on the
10-15    southeast line of the A.M. Nelson Survey, Abstract No. 426;
10-16    THENCE, South 60 degrees West 600 varas to the southwest corner of
10-17    said Nelson Survey, this point being located in the northeast line
10-18    of the Robert Carson Survey, Abstract No. 132;
10-19    THENCE, North 30 degrees West 550 varas along the northeast line of
10-20    said Carson Survey and a southwest line of said Nelson Survey to
10-21    the northeast corner of said Carson Survey, this point being an
10-22    interior corner of said Nelson Survey;
10-23    THENCE, South 60 degrees West along the northwest line of said
10-24    Carson Survey to the southeast corner of the John E. Smith Survey,
10-25    Abstract No. 580, this point being a southwest corner of said
10-26    Nelson Survey;
10-27    THENCE, North 30 degrees West along the northeast line of said J.E.
 11-1    Smith Survey and a southwest line of said Nelson Survey and the
 11-2    southwest line of the Lemuel G. Farris Survey, Abstract No. 184 to
 11-3    the northeast corner of said J.E. Smith Survey, this point being
 11-4    the most southerly southeast corner of the B.F. Pennington Survey,
 11-5    Abstract No. 662;
 11-6    THENCE, South 60 degrees West along the northwest line of said
 11-7    Smith Survey and the most southerly southeast line of said
 11-8    Pennington Survey to the southwest corner of said Pennington
 11-9    Survey, this point being the most easterly southeast corner of the
11-10    Lemuel Peters Survey, Abstract No. 438;
11-11    THENCE, North 30 degrees West along the southwest line of said
11-12    Pennington Survey and the northeast line of said Peters Survey to
11-13    the northeast corner of said Peters Survey and the northwest corner
11-14    of said Pennington Survey, this point being located in the
11-15    southeast line of the Ben. R. Thomas Survey, Abstract No. 567;
11-16    THENCE, North 60 degrees East along the southeasterly line of said
11-17    Ben. R. Thomas Survey and the northwesterly line of said Pennington
11-18    Survey to the southeast corner of said Ben. R. Thomas Survey, this
11-19    point also being located at an interior southwesterly corner of the
11-20    Nathan H. Hooe Survey, Abstract No. 271;
11-21    THENCE, North 30 degrees West along the northeasterly line of said
11-22    Ben. R. Thomas Survey and a southwesterly line of said Hooe Survey
11-23    and the most westerly southwest line of the Patrick Quinn Survey,
11-24    Abstract No. 702 to the northeast corner of said Ben. R. Thomas
11-25    Survey and the northwest corner of said Quinn Survey, this point
11-26    also being the southeast corner of the William Love Survey,
11-27    Abstract No. 318 and the southwest corner of the George Gazley
 12-1    Survey, Abstract No. 195;
 12-2    THENCE, North 60 degrees East along the southeasterly line of said
 12-3    Gazley Survey, and the southeasterly line of the John D. Jameson
 12-4    Survey, Abstract No. 294 to the southeast corner of said Jameson
 12-5    Survey and the southwest corner of the Peyton Blan Survey, Abstract
 12-6    No. 32-435;
 12-7    THENCE, North 30 degrees West along the northeasterly line of said
 12-8    Jameson Survey, and the southwesterly line of said Blan Survey and
 12-9    the northeasterly line of the John D. Brown Survey, Abstract No. 25
12-10    and the southwesterly line of the William Milspaugh Survey,
12-11    Abstract No. 345 to the northeast corner of said Brown Survey and
12-12    the northwest corner of said Milspaugh Survey, this point being
12-13    located in the southerly line of the Simon Cockrell Survey,
12-14    Abstract No. 87;
12-15    THENCE, North 60 degrees East along the northwesterly line of said
12-16    Milspaugh Survey and the southerly line of said Cockrell Survey to
12-17    the southeast corner of said Cockrell Survey, this point also being
12-18    the southwest corner of the Lorenzo de Lavalla Survey, Abstract No.
12-19    613;
12-20    THENCE, North along the east line of said Cockrell Survey and the
12-21    west line of said de Lavalla Survey to a point on the common north
12-22    line of Hood County and the south line of Parker County, Texas;
12-23    THENCE, East along said Hood/Parker County line, crossing the
12-24    Brazos River and several surveys of land to the Point of Beginning;
12-25    SAVE and EXCEPT the following three tracts:
12-26    (1)  approximately 101.9 acres out of the W. Adams Survey, Abstract
12-27    No. 1 and the John Chenowith Survey, Abstract No. 118, Hood County,
 13-1    Texas, more particularly described in that certain Deed from F.B.
 13-2    Mabery, et ux to TEXAS POWER & LIGHT COMPANY, dated November 15,
 13-3    1967, which is recorded at Volume 139, Page 406 of the Deed Records
 13-4    of Hood County, Texas;
 13-5    (2)  approximately 138.3 acres out of the W. Adams Survey, Abstract
 13-6    No. 1 and the John Chenowith Survey, Abstract No. 118, Hood County,
 13-7    Texas, more particularly described in that certain Deed from R.E.
 13-8    Mabery, et ux to TEXAS POWER & LIGHT COMPANY, dated November 15,
 13-9    1967, which is recorded at Volume 139, Page 481 of the Deed Records
13-10    of Hood County, Texas; and
13-11    (3)  approximately 221.27 acres out of the John Chenowith Survey,
13-12    Abstract No. 118, Hood County, Texas, more particularly described
13-13    in that certain Deed from Jack M. Langdon, et al to TEXAS POWER &
13-14    LIGHT COMPANY, dated September 6, 1978, which is recorded at Volume
13-15    290, page 132 of the Deed Records of Hood County, Texas.
13-16          SECTION 4.  FINDINGS RELATIVE TO BOUNDARIES.  The legislature
13-17    finds that the boundaries and field notes of the district form a
13-18    closure. A mistake in the field notes or in copying the field notes
13-19    in the legislative process does not affect the organization,
13-20    existence, or validity of the district, the right of the district
13-21    to impose taxes, or the legality or operation of the district or
13-22    its governing body.
13-23          SECTION 5.  FINDING OF BENEFIT.  All of the land and other
13-24    property included within the boundaries of the district will be
13-25    benefited by the works and projects that are to be accomplished by
13-26    the district under powers conferred by Section 59, Article XVI,
13-27    Texas Constitution. The district is created to serve a public use
 14-1    and benefit.
 14-2          SECTION 6.  GENERAL POWERS.  (a)  The district has all of the
 14-3    rights, powers, privileges, authority, functions, and duties
 14-4    provided by the general law of this state, including Chapters 30,
 14-5    49, and 54, Water Code, applicable to municipal utility districts
 14-6    created under Section 59, Article XVI, Texas Constitution, except
 14-7    that the district does not have any of the powers provided in
 14-8    Section 54.201(b), Water Code, except for the powers provided in
 14-9    Section 54.201(b)(2) to collect, transport, process, dispose of,
14-10    and control all domestic, industrial, and communal wastes, whether
14-11    in fluid, solid, or composite state. This Act prevails over any
14-12    provision of general law that is in conflict or inconsistent with
14-13    this Act.
14-14          (b)  The rights, powers, privileges, authority, functions,
14-15    and duties of the district are subject to the continuing right of
14-16    supervision of the state to be exercised by and through the Texas
14-17    Natural Resource Conservation Commission.
14-18          SECTION 7.  BOARD OF DIRECTORS.  (a)  The district is
14-19    governed by a board of eight directors.
14-20          (b)  Temporary directors serve until initial directors are
14-21    elected under Section 10 of this Act.
14-22          (c)  Initial directors serve until permanent directors are
14-23    elected under Section 11 of this Act.
14-24          (d)  Permanent directors serve staggered four-year terms.
14-25          (e)  A director serves until the director's successor has
14-26    qualified.
14-27          SECTION 8.  TEMPORARY DIRECTORS.  (a)  The temporary board of
 15-1    directors consists of:
 15-2                (1)  Larry Brockman;
 15-3                (2)  Ron Cullers;
 15-4                (3)  Susan Cummet;
 15-5                (4)  Larry Kemp;
 15-6                (5)  G. Holman King;
 15-7                (6)  Clyde Perry;
 15-8                (7)  James L. Shultz; and
 15-9                (8)  J. C. Wright.
15-10          (b)  The temporary directors shall take the oath of office
15-11    and execute bonds to qualify for holding their offices as soon as
15-12    possible after the effective date of this Act.
15-13          (c)  If a temporary director fails to qualify for office, the
15-14    temporary directors who have qualified shall appoint a person to
15-15    fill the vacancy.  If at any time there are fewer than five
15-16    qualified temporary directors, the Texas Natural Resource
15-17    Conservation Commission shall appoint the necessary number of
15-18    persons to fill all vacancies on the board.
15-19          SECTION 9.  METHOD OF ELECTING DIRECTORS.  (a)  The territory
15-20    within the district shall be divided into four voting precincts
15-21    along the same lines as the precincts established by the Hood
15-22    County Commissioners Court for the election of county
15-23    commissioners. The board may adjust the precinct boundaries as
15-24    necessary to provide for proper representation of voters within the
15-25    district if the district annexes land or if otherwise required by
15-26    law.
15-27          (b)  Two directors shall be elected from each voting precinct
 16-1    by the voters of that precinct.  The candidate who receives the
 16-2    highest number of votes and the candidate who receives the second
 16-3    highest number of votes in a precinct shall serve as the directors
 16-4    from that precinct.
 16-5          (c)  To be qualified to be a candidate for or to serve as
 16-6    director, a person must reside in and be a registered voter in the
 16-7    voting precinct that the person seeks to represent.
 16-8          SECTION 10.  CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
 16-9    (a)  On the first Saturday in May 2002, the temporary board shall
16-10    hold an election to confirm the establishment of the district and
16-11    to elect eight initial directors as provided by the Election Code
16-12    and Chapters 49 and 54, Water Code.
16-13          (b)  At the confirmation and initial directors' election, the
16-14    temporary board shall have placed on the ballot the name of any
16-15    candidate filing for an initial director's position and blank
16-16    spaces to write in the names of other persons.  A temporary
16-17    director who is qualified to be a candidate under Section 9 of this
16-18    Act may file for an initial director's position.
16-19          (c)  Of the two directors initially elected from each
16-20    precinct within the district, the director with the most votes
16-21    shall serve a term ending in May 2006, and the other director shall
16-22    serve a term ending in May 2004.
16-23          (d)  At the election, the board may submit to the voters
16-24    propositions to authorize issuance of bonds, a maintenance tax, and
16-25    a tax to make payments under a contract.
16-26          SECTION 11.  ELECTION OF DIRECTORS.  On the first Saturday in
16-27    May of each even-numbered year, the appropriate number of directors
 17-1    shall be elected.
 17-2          SECTION 12.  EXCLUSION OF LAND FROM THE DISTRICT.  (a)  Land
 17-3    may be excluded from the district as provided by Chapters 49 and
 17-4    54, Water Code, and as provided by this section.
 17-5          (b)  Not later than two months after the temporary directors
 17-6    qualify for office, the district shall provide written notice to
 17-7    each retail sewer utility providing retail sewer utility service
 17-8    within the boundaries of the district, according to the records of
 17-9    the Texas Natural Resource Conservation Commission, stating:
17-10                (1)  the existence of the district and its purposes;
17-11    and
17-12                (2)  that the governing body of a retail sewer utility
17-13    may request that any area in the district in which the retail sewer
17-14    utility is providing retail sewer utility service be excluded from
17-15    the boundaries of the district.
17-16          (c)  Notice provided under this section must be sent by
17-17    certified mail, return receipt requested.
17-18          (d)  To have territory excluded from the district, a retail
17-19    sewer utility must file a written resolution with the district not
17-20    later than the 60th day after the date of receipt of the notice by
17-21    the retail sewer utility.  The resolution must contain an accurate
17-22    description of the area to be excluded.
17-23          (e)  At its next meeting after receiving a written
17-24    resolution, the board shall adopt an order excluding the area
17-25    described in the written resolution and redefining the boundaries
17-26    of the district to reflect the exclusion.
17-27          (f)  Notwithstanding Subsections (b)-(e) of this section, a
 18-1    retail sewer utility that is a municipality may, not later than one
 18-2    year after the effective date of this Act, file with the district a
 18-3    written resolution of the city council of the municipality
 18-4    requesting that all or any part of the area within the corporate
 18-5    limits or extraterritorial jurisdiction of the municipality be
 18-6    excluded from the boundaries of the district if the area is not
 18-7    within the service area of another retail sewer utility.  Upon
 18-8    receipt of a written resolution, the board shall, at its next
 18-9    meeting, adopt an order excluding the area and redefining the
18-10    boundaries of the district to reflect the exclusion.
18-11          (g)  It is expressly acknowledged for purposes of this Act
18-12    that the City of Granbury, in Hood County, Texas, is a retail sewer
18-13    utility.
18-14          SECTION 13.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
18-15    (a)  The proper and legal notice of the intention to introduce this
18-16    Act, setting forth the general substance of this Act, has been
18-17    published as provided by law, and the notice and a copy of this Act
18-18    have been furnished to all persons, agencies, officials, or
18-19    entities to which they are required to be furnished by the
18-20    constitution and other laws of this state, including the governor,
18-21    who has submitted the notice and Act to the Texas Natural Resource
18-22    Conservation Commission.
18-23          (b)  The Texas Natural Resource Conservation Commission has
18-24    filed its recommendations relating to this Act with the governor,
18-25    lieutenant governor, and speaker of the house of representatives
18-26    within the required time.
18-27          (c)  All requirements of the constitution and laws of this
 19-1    state and the rules and procedures of the legislature with respect
 19-2    to the notice, introduction, and passage of this Act are fulfilled
 19-3    and accomplished.
 19-4          SECTION 14.  EFFECTIVE DATE.  This Act takes effect
 19-5    immediately if it receives a vote of two-thirds of all the members
 19-6    elected to each house, as provided by Section 39, Article III,
 19-7    Texas Constitution.  If this Act does not receive the vote
 19-8    necessary for immediate effect, this Act takes effect September 1,
 19-9    2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3693 was passed by the House on May
         8, 2001, by the following vote:  Yeas 147, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3693 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