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