1-1 By: Keffer (Senate Sponsor - Sibley) H.B. No. 3693 1-2 (In the Senate - Received from the House May 9, 2001; 1-3 May 10, 2001, read first time and referred to Committee on Natural 1-4 Resources; May 11, 2001, reported favorably by the following vote: 1-5 Yeas 5, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the creation, administration, powers, duties, 1-9 operation, and financing of the Lake Granbury Water Improvement 1-10 District. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. CREATION. (a) A conservation and reclamation 1-13 district, to be known as the Lake Granbury Water Improvement 1-14 District, is created in Hood County, subject to approval at a 1-15 confirmation election under Section 10 of this Act. The district is 1-16 a governmental agency and a body politic and corporate. 1-17 (b) The district is created under and is essential to 1-18 accomplish the purposes of Section 59, Article XVI, Texas 1-19 Constitution. 1-20 SECTION 2. DEFINITIONS. In this Act: 1-21 (1) "Board" means the board of directors of the 1-22 district. 1-23 (2) "District" means the Lake Granbury Water 1-24 Improvement District. 1-25 (3) "Retail sewer utility" means any person, 1-26 corporation, public utility, water supply or sewer service 1-27 corporation, municipality, political subdivision, or agency 1-28 operating, maintaining, or controlling in this state facilities for 1-29 providing sewer service for compensation. 1-30 SECTION 3. BOUNDARIES. The district includes the territory 1-31 contained within the following area: 1-32 BEGINNING at a point at the Northeast corner of the Hood County, 1-33 Texas line and the Northwest corner of the Johnson County, Texas 1-34 line, also being on the South line of Parker County, Texas; 1-35 THENCE, South along the East line of Hood County and the West line 1-36 of Johnson County to a point in the south of line of the R.B. Berry 1-37 Survey, Hood County Abstract No. 765 and Johnson County Abstract 1-38 No. 985, this point being located in a north line of the W. Mann 1-39 Survey, Hood County Abstract No. 780 and Johnson County Abstract 1-40 No. 1120; 1-41 THENCE, West along the south line of said Berry Survey and a north 1-42 line of said Mann Survey to the southwest corner of said Berry 1-43 Survey; 1-44 THENCE, North along the west line of said Berry Survey and an east 1-45 line of said Mann Survey to the most northerly northeast corner of 1-46 said Mann Survey; 1-47 THENCE, West along the north line of said Mann Survey and the north 1-48 line of the J.R. Sykes Survey, Abstract No. 344 and the south line 1-49 of the J.F. McGee Survey, Abstract No. 388 and the north line of 1-50 the W. Williams Survey, Abstract No. 677 to the southwest corner of 1-51 said McGee Survey, this point being an interior corner of said W. 1-52 Williams Survey; 1-53 THENCE, North along the west line of said McGee Survey and an east 1-54 line of said W. Williams Survey to the northwest corner of said 1-55 McGee Survey and the most northerly northeast corner of said W. 1-56 Williams Survey; 1-57 THENCE, West along the north line of said W. Williams Survey to the 1-58 northwest corner of said W. Williams Survey; 1-59 THENCE, South along the most westerly west line of said W. Williams 1-60 Survey to a point in the north line of the J.C. Berry Survey, 1-61 Abstract No. 776; 1-62 THENCE, East along a south line of said W. Williams Survey and the 1-63 north line of said J.C. Berry Survey to the northeast corner of 1-64 said J.C. Berry Survey, this point being an interior corner of said 2-1 W. Williams Survey; 2-2 THENCE, South along the east line of said J.C Berry Survey and a 2-3 west line of said W. Williams Survey to the southeast corner of 2-4 said J.C. Berry Survey, this point being the northeast corner of 2-5 the J.C. Stewart Survey, Abstract No. 774; 2-6 THENCE, West along the south line of said J.C. Berry Survey and the 2-7 north line of said Stewart Survey and the north line of the C.H. 2-8 Strong Survey, Abstract No. 742 to the northwest corner of said 2-9 Strong Survey; 2-10 THENCE, South along the west line of said C.H. Strong Survey and 2-11 the east line of the J. Loughbridge Survey, Abstract No. 338 and 2-12 the east line of the J.R. Loughbridge Survey, Abstract No. 337 and 2-13 a west line of the D.L. Middleton Survey, Abstract No. 732 to the 2-14 southeast corner of said J.R. Loughbridge Survey, this point being 2-15 an interior corner of said D.L. Middleton Survey; 2-16 THENCE, West along the south line of said J.R. Loughbridge Survey 2-17 to the most westerly west line of said D.L. Middleton Survey, this 2-18 point being the northeast corner of the O.P. Hutchison Survey, 2-19 Abstract No. 768; 2-20 THENCE, South along the east line of said Hutchison Survey and the 2-21 most westerly west line of said D.L. Middleton to the northwest 2-22 corner of a 111.5 acre tract of land described in the deed recorded 2-23 in Volume 64, Page 99, Deed Records, Hood County, Texas; 2-24 THENCE, South 82 degrees East along the north line of said 111.5 2-25 acre tract to a point in the most westerly east line of said D.L. 2-26 Middleton Survey; 2-27 THENCE, South along the most westerly east line of said D.L. 2-28 Middleton Survey to the most southerly southeast corner of said 2-29 D.L. Middleton Survey, this point being located in the north line 2-30 of the E.C. Hull Survey, Abstract No. 243; 2-31 THENCE, West along the south line of said D.L. Middleton Survey and 2-32 the north line of said E.C. Hull Survey to the northwest corner of 2-33 said E.C. Hull Survey, this point being located in the east line of 2-34 said Hutchison Survey; 2-35 THENCE, South along the west line of said E.C. Hull Survey and the 2-36 east line of said Hutchison Survey to the southeast corner of said 2-37 Hutchison Survey, this point being located in the northwest line of 2-38 the Washington Howard Survey, Abstract No. 244; 2-39 THENCE, Northeast along the northwest line of said Howard Survey to 2-40 the northeast corner of said Howard Survey, this point being an 2-41 interior corner of said E.C. Hull Survey; 2-42 THENCE, Southeasterly along the northeast line of said Howard 2-43 Survey to the most southerly southwest corner of said E.C. Hull 2-44 Survey, this point being the northwest corner of the E.D Crouch 2-45 Survey, Abstract No. 99; 2-46 THENCE, East along the south line of said E.C. Hull Survey and the 2-47 north line of said Crouch Survey and the south line of the D. Hull 2-48 Survey, Abstract No. 241 to the southeast corner of said D. Hull 2-49 Survey, this point being located in the west line of the David Hull 2-50 Survey, Abstract No. 242; 2-51 THENCE, South along the west line of said David Hull Survey, 2-52 Abstract No. 242 and the west line of the D.L. Middleton Survey, 2-53 Abstract No. 733 to the southwest corner of said D.L. Middleton 2-54 Survey; 2-55 THENCE, East along the south line of said D.L. Middleton Survey and 2-56 the south line of the J.F. Randel Survey, Hood County Abstract No. 2-57 856 and Johnson County Abstract No. 733 to a point in the common 2-58 east line of Hood County and west line of Johnson County, Texas; 2-59 THENCE, South along said Hood/Johnson County line crossing the 2-60 Brazos River at the northerly side of Cordova Bend and the 2-61 northerly line of the James Moore Survey, Abstract No. 344, 2-62 continuing along said Hood/Johnson County line, to the Brazos River 2-63 at the southerly side of Cordova Bend and the southerly line of 2-64 said Moore Survey; 2-65 THENCE, Southwesterly along the meanders of the Brazos River and 2-66 the southerly line of said Moore Survey, passing the northeast 2-67 corner of the Thomas E. Tucker Survey, Abstract No. 566, continuing 2-68 along said Brazos River to the common south line of Hood County and 2-69 the north line of Somervell County, Texas; 3-1 THENCE, West along the Hood/Somervell County line, across Mitchell 3-2 Bend, to a point in the Brazos River on the east side of Cox Bend; 3-3 THENCE, Northwesterly along the meanders of said Brazos River to a 3-4 point of the west side of Cox Bend at the above mentioned 3-5 Hood/Somervell County line; 3-6 THENCE, West along said Hood/Somervell County line to the northeast 3-7 corner of the W.B. Smith Survey, Somervell County Abstract No. 90, 3-8 this point being in the south line of the John C. Grace Survey, 3-9 Hood County Abstract No. 203, this point also being an angle point 3-10 on the said Hood/Somervell County line; 3-11 THENCE, South 60 degrees West along the said Hood/Somervell County 3-12 line and the south line of said Grace Survey to the southwest 3-13 corner of said Grace Survey, this point being the southeast corner 3-14 of the James D. Elliot Survey, Hood County Abstract No. 170; 3-15 THENCE, North 30 degrees West along the southwesterly line of said 3-16 John C. Grace Survey and the northeasterly line of said J.D. Elliot 3-17 Survey to the northwest corner of said Grace Survey and the 3-18 northeast corner of said Elliott Survey, this point being located 3-19 in the southeast line of the John C. Grace Survey, Abstract No. 3-20 190; 3-21 THENCE, South 60 degrees West along the southeast line of said 3-22 Grace Survey, Abstract No. 190, to the southwest corner of said 3-23 Grace Survey, this point being the southeast corner of the Richard 3-24 Disney Survey, Abstract No. 144; 3-25 THENCE, North 30 degrees West along the southwesterly line of said 3-26 Grace Survey to the northwest corner of said Grace Survey and the 3-27 northeast corner of said Disney Survey, this point being located in 3-28 the southeasterly line of the Felix C. Cattonet Survey, Abstract 3-29 No. 92; 3-30 THENCE, South 60 degrees West along the southeasterly line of said 3-31 Cattonet Survey and the northwesterly line of said Disney Survey 3-32 and the northwesterly line of the William R. Carey Survey, Abstract 3-33 No. 85, to the southeast corner of the George Gordon tract of land, 3-34 this point being located in the southeasterly line of the J.O. 3-35 Morris Survey, Abstract No. 347; 3-36 THENCE, North 30 degrees West 410 varas along the northeasterly 3-37 line of said Gordon tract to the northeast corner of said Gordon 3-38 tract; 3-39 THENCE, South 60 degrees West 540 varas along the northwesterly 3-40 line of said Gordon tract to the northwest corner of said Gordon 3-41 tract, this point being located in the southwesterly line of said 3-42 Morris Survey and the northeasterly line of the P.S. Hughlett 3-43 Survey, Abstract No. 257; 3-44 THENCE, North 30 degrees West along the northeasterly line of said 3-45 Hughlett Survey and the southwesterly line of said Morris Survey to 3-46 a point in the State Highway No. 51-Paluxy Highway; 3-47 THENCE, North 26 degrees East 1,275 varas along said highway, 3-48 crossing the northwesterly line of said Morris Survey and the 3-49 southeasterly line of the William Harper Survey, Abstract No. 254, 3-50 to a point in the northeasterly line of said Harper Survey, 3-51 Abstract No. 254, this point being located in the southwesterly 3-52 line of the William Harper Survey, Abstract No. 258; 3-53 THENCE, North 30 degrees West, 2,165 varas to the northeast corner 3-54 of said Harper Survey, Abstract No. 254 and the northwest corner of 3-55 said Harper Survey, Abstract No. 258, this point also being the 3-56 most southerly southwest corner of the Thomas W. Bundick Survey, 3-57 Abstract No. 24; 3-58 THENCE, North 60 degrees East 520 varas along the northwesterly 3-59 line of said Harper Survey, Abstract No. 258 to the most southerly 3-60 southeast corner of said Bundick Survey, Abstract No. 24, this 3-61 point also being the southwest corner of the Jonathan Shaw Survey, 3-62 Abstract No. 514; 3-63 THENCE, North 30 degrees West 950 varas along the northeasterly 3-64 line of said Bundick Survey, Abstract No. 24 and the southwesterly 3-65 line of said Shaw Survey, Abstract No. 514 to the northwest corner 3-66 of said Shaw Survey, Abstract No. 514; 3-67 THENCE, North 60 degrees East 1,930 varas along the northwesterly 3-68 line of said Shaw Survey, Abstract No. 514 and the northwesterly 3-69 line of the Jonathan Shaw Survey, Abstract No. 513 and the 4-1 southeasterly line of the C. Arrington Survey, Abstract No. 10 to 4-2 the northeast corner of said Shaw Survey, Abstract No. 513 and the 4-3 southeast corner of said C. Arrington Survey, this point being in 4-4 the southwesterly line of the Thomas W. Bundick Survey, Abstract 4-5 No. 23; 4-6 THENCE, North 30 degrees West along the northeasterly line of said 4-7 C. Arrington Survey and the southwesterly line of said Bundick 4-8 Survey, Abstract No. 23 to the northeast corner of said C. 4-9 Arrington Survey and the northwest corner of said Bundick Survey, 4-10 Abstract No. 23, this point being in the southeasterly line of the 4-11 W.J. Arrington Survey, Abstract No. 18; 4-12 THENCE, North 60 degrees East along the southeasterly line of said 4-13 W.J. Arrington Survey and the northwesterly line of said Bundick 4-14 Survey, Abstract No. 23 to the southeast corner of said W.J. 4-15 Arrington Survey; 4-16 THENCE, North 30 degrees West along the northeasterly line of said 4-17 W.J. Arrington Survey to the northeast corner of said W.J. 4-18 Arrington Survey, this point being in the southeasterly line of the 4-19 E.T. Gatlin Survey, Abstract No. 211; 4-20 THENCE, South 60 degrees West along the northwesterly line of said 4-21 W.J. Arrington Survey and the southeasterly line of said Gatlin 4-22 Survey and the southeasterly line of the T.W. Arrington Survey, 4-23 Abstract No. 17 and the northwesterly line of the aforementioned 4-24 Thomas W. Bundick Survey, Abstract No. 24 to the southwest corner 4-25 of said T.W. Arrington and the most easterly southeast corner of 4-26 the James S. Turner Survey, Abstract No. 557; 4-27 THENCE, North 30 degrees West along the most easterly northeast 4-28 line of said J. S. Turner Survey, passing the most easterly 4-29 northeast corner of said J.S. Turner Survey and crossing the L.E. 4-30 Earnest Survey, Abstract No. 883 and crossing the I.W. Walley 4-31 Survey, Abstract No. 870 to a point in the northwesterly line of 4-32 said Walley Survey; 4-33 THENCE, South 60 degrees West 1,006 varas along the northwesterly 4-34 line of said Walley Survey and the most northerly northwest line of 4-35 said Earnest Survey and the most northerly northwest line of said 4-36 J.S. Turner Survey and the southeasterly line of the Willis 4-37 Phillips Survey, Abstract No. 196, to the southwest corner of the 4-38 J. Menefee tract of land out of the said Phillips Survey and the 4-39 Thomas P. Helm Survey, Abstract No. 253; 4-40 THENCE, North 30 degrees West 699 varas along the southwesterly 4-41 line of said J. Menefee tract, crossing the southeasterly line of 4-42 said Helm Survey, to the northwesterly corner of said J. Menefee 4-43 tract; 4-44 THENCE, North 60 degrees East 370 varas along the northwesterly 4-45 line of said J. Menefee tract to the northeasterly corner of said 4-46 J. Menefee tract, this point being located in the northeasterly 4-47 line of said Helm Survey and the most easterly southwest line of 4-48 said Phillips Survey; 4-49 THENCE, North 30 degrees West 250 varas along the northeast line of 4-50 said Helm Survey and the most easterly southwest line of said 4-51 Phillips Survey to the most northerly northwest corner of said 4-52 Phillips Survey, this point being the most easterly southwest 4-53 corner of the J.M Ybardo Survey, Abstract No. 750; 4-54 THENCE, North 60 degrees East 500 varas along the southeast line of 4-55 said Ybardo Survey and the most northerly northwest line of said 4-56 Phillips Survey to the northeast corner of said Phillips Survey and 4-57 the northwest corner of the S. Ruyle Survey, Abstract No. 825; 4-58 THENCE, North 30 degrees West, 1,150 varas to a post on the 4-59 southeast line of the A.M. Nelson Survey, Abstract No. 426; 4-60 THENCE, South 60 degrees West 600 varas to the southwest corner of 4-61 said Nelson Survey, this point being located in the northeast line 4-62 of the Robert Carson Survey, Abstract No. 132; 4-63 THENCE, North 30 degrees West 550 varas along the northeast line of 4-64 said Carson Survey and a southwest line of said Nelson Survey to 4-65 the northeast corner of said Carson Survey, this point being an 4-66 interior corner of said Nelson Survey; 4-67 THENCE, South 60 degrees West along the northwest line of said 4-68 Carson Survey to the southeast corner of the John E. Smith Survey, 4-69 Abstract No. 580, this point being a southwest corner of said 5-1 Nelson Survey; 5-2 THENCE, North 30 degrees West along the northeast line of said J.E. 5-3 Smith Survey and a southwest line of said Nelson Survey and the 5-4 southwest line of the Lemuel G. Farris Survey, Abstract No. 184 to 5-5 the northeast corner of said J.E. Smith Survey, this point being 5-6 the most southerly southeast corner of the B.F. Pennington Survey, 5-7 Abstract No. 662; 5-8 THENCE, South 60 degrees West along the northwest line of said 5-9 Smith Survey and the most southerly southeast line of said 5-10 Pennington Survey to the southwest corner of said Pennington 5-11 Survey, this point being the most easterly southeast corner of the 5-12 Lemuel Peters Survey, Abstract No. 438; 5-13 THENCE, North 30 degrees West along the southwest line of said 5-14 Pennington Survey and the northeast line of said Peters Survey to 5-15 the northeast corner of said Peters Survey and the northwest corner 5-16 of said Pennington Survey, this point being located in the 5-17 southeast line of the Ben. R. Thomas Survey, Abstract No. 567; 5-18 THENCE, North 60 degrees East along the southeasterly line of said 5-19 Ben. R. Thomas Survey and the northwesterly line of said Pennington 5-20 Survey to the southeast corner of said Ben. R. Thomas Survey, this 5-21 point also being located at an interior southwesterly corner of the 5-22 Nathan H. Hooe Survey, Abstract No. 271; 5-23 THENCE, North 30 degrees West along the northeasterly line of said 5-24 Ben. R. Thomas Survey and a southwesterly line of said Hooe Survey 5-25 and the most westerly southwest line of the Patrick Quinn Survey, 5-26 Abstract No. 702 to the northeast corner of said Ben. R. Thomas 5-27 Survey and the northwest corner of said Quinn Survey, this point 5-28 also being the southeast corner of the William Love Survey, 5-29 Abstract No. 318 and the southwest corner of the George Gazley 5-30 Survey, Abstract No. 195; 5-31 THENCE, North 60 degrees East along the southeasterly line of said 5-32 Gazley Survey, and the southeasterly line of the John D. Jameson 5-33 Survey, Abstract No. 294 to the southeast corner of said Jameson 5-34 Survey and the southwest corner of the Peyton Blan Survey, Abstract 5-35 No. 32-435; 5-36 THENCE, North 30 degrees West along the northeasterly line of said 5-37 Jameson Survey, and the southwesterly line of said Blan Survey and 5-38 the northeasterly line of the John D. Brown Survey, Abstract No. 25 5-39 and the southwesterly line of the William Milspaugh Survey, 5-40 Abstract No. 345 to the northeast corner of said Brown Survey and 5-41 the northwest corner of said Milspaugh Survey, this point being 5-42 located in the southerly line of the Simon Cockrell Survey, 5-43 Abstract No. 87; 5-44 THENCE, North 60 degrees East along the northwesterly line of said 5-45 Milspaugh Survey and the southerly line of said Cockrell Survey to 5-46 the southeast corner of said Cockrell Survey, this point also being 5-47 the southwest corner of the Lorenzo de Lavalla Survey, Abstract No. 5-48 613; 5-49 THENCE, North along the east line of said Cockrell Survey and the 5-50 west line of said de Lavalla Survey to a point on the common north 5-51 line of Hood County and the south line of Parker County, Texas; 5-52 THENCE, East along said Hood/Parker County line, crossing the 5-53 Brazos River and several surveys of land to the Point of Beginning; 5-54 SAVE and EXCEPT the following three tracts: 5-55 (1) approximately 101.9 acres out of the W. Adams Survey, Abstract 5-56 No. 1 and the John Chenowith Survey, Abstract No. 118, Hood County, 5-57 Texas, more particularly described in that certain Deed from F.B. 5-58 Mabery, et ux to TEXAS POWER & LIGHT COMPANY, dated November 15, 5-59 1967, which is recorded at Volume 139, Page 406 of the Deed Records 5-60 of Hood County, Texas; 5-61 (2) approximately 138.3 acres out of the W. Adams Survey, Abstract 5-62 No. 1 and the John Chenowith Survey, Abstract No. 118, Hood County, 5-63 Texas, more particularly described in that certain Deed from R.E. 5-64 Mabery, et ux to TEXAS POWER & LIGHT COMPANY, dated November 15, 5-65 1967, which is recorded at Volume 139, Page 481 of the Deed Records 5-66 of Hood County, Texas; and 5-67 (3) approximately 221.27 acres out of the John Chenowith Survey, 5-68 Abstract No. 118, Hood County, Texas, more particularly described 5-69 in that certain Deed from Jack M. Langdon, et al to TEXAS POWER & 6-1 LIGHT COMPANY, dated September 6, 1978, which is recorded at Volume 6-2 290, page 132 of the Deed Records of Hood County, Texas. 6-3 SECTION 4. FINDINGS RELATIVE TO BOUNDARIES. The legislature 6-4 finds that the boundaries and field notes of the district form a 6-5 closure. A mistake in the field notes or in copying the field notes 6-6 in the legislative process does not affect the organization, 6-7 existence, or validity of the district, the right of the district 6-8 to impose taxes, or the legality or operation of the district or 6-9 its governing body. 6-10 SECTION 5. FINDING OF BENEFIT. All of the land and other 6-11 property included within the boundaries of the district will be 6-12 benefited by the works and projects that are to be accomplished by 6-13 the district under powers conferred by Section 59, Article XVI, 6-14 Texas Constitution. The district is created to serve a public use 6-15 and benefit. 6-16 SECTION 6. GENERAL POWERS. (a) The district has all of the 6-17 rights, powers, privileges, authority, functions, and duties 6-18 provided by the general law of this state, including Chapters 30, 6-19 49, and 54, Water Code, applicable to municipal utility districts 6-20 created under Section 59, Article XVI, Texas Constitution, except 6-21 that the district does not have any of the powers provided in 6-22 Section 54.201(b), Water Code, except for the powers provided in 6-23 Section 54.201(b)(2) to collect, transport, process, dispose of, 6-24 and control all domestic, industrial, and communal wastes, whether 6-25 in fluid, solid, or composite state. This Act prevails over any 6-26 provision of general law that is in conflict or inconsistent with 6-27 this Act. 6-28 (b) The rights, powers, privileges, authority, functions, 6-29 and duties of the district are subject to the continuing right of 6-30 supervision of the state to be exercised by and through the Texas 6-31 Natural Resource Conservation Commission. 6-32 SECTION 7. BOARD OF DIRECTORS. (a) The district is 6-33 governed by a board of eight directors. 6-34 (b) Temporary directors serve until initial directors are 6-35 elected under Section 10 of this Act. 6-36 (c) Initial directors serve until permanent directors are 6-37 elected under Section 11 of this Act. 6-38 (d) Permanent directors serve staggered four-year terms. 6-39 (e) A director serves until the director's successor has 6-40 qualified. 6-41 SECTION 8. TEMPORARY DIRECTORS. (a) The temporary board of 6-42 directors consists of: 6-43 (1) Larry Brockman; 6-44 (2) Ron Cullers; 6-45 (3) Susan Cummet; 6-46 (4) Larry Kemp; 6-47 (5) G. Holman King; 6-48 (6) Clyde Perry; 6-49 (7) James L. Shultz; and 6-50 (8) J. C. Wright. 6-51 (b) The temporary directors shall take the oath of office 6-52 and execute bonds to qualify for holding their offices as soon as 6-53 possible after the effective date of this Act. 6-54 (c) If a temporary director fails to qualify for office, the 6-55 temporary directors who have qualified shall appoint a person to 6-56 fill the vacancy. If at any time there are fewer than five 6-57 qualified temporary directors, the Texas Natural Resource 6-58 Conservation Commission shall appoint the necessary number of 6-59 persons to fill all vacancies on the board. 6-60 SECTION 9. METHOD OF ELECTING DIRECTORS. (a) The territory 6-61 within the district shall be divided into four voting precincts 6-62 along the same lines as the precincts established by the Hood 6-63 County Commissioners Court for the election of county 6-64 commissioners. The board may adjust the precinct boundaries as 6-65 necessary to provide for proper representation of voters within the 6-66 district if the district annexes land or if otherwise required by 6-67 law. 6-68 (b) Two directors shall be elected from each voting precinct 6-69 by the voters of that precinct. The candidate who receives the 7-1 highest number of votes and the candidate who receives the second 7-2 highest number of votes in a precinct shall serve as the directors 7-3 from that precinct. 7-4 (c) To be qualified to be a candidate for or to serve as 7-5 director, a person must reside in and be a registered voter in the 7-6 voting precinct that the person seeks to represent. 7-7 SECTION 10. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. 7-8 (a) On the first Saturday in May 2002, the temporary board shall 7-9 hold an election to confirm the establishment of the district and 7-10 to elect eight initial directors as provided by the Election Code 7-11 and Chapters 49 and 54, Water Code. 7-12 (b) At the confirmation and initial directors' election, the 7-13 temporary board shall have placed on the ballot the name of any 7-14 candidate filing for an initial director's position and blank 7-15 spaces to write in the names of other persons. A temporary 7-16 director who is qualified to be a candidate under Section 9 of this 7-17 Act may file for an initial director's position. 7-18 (c) Of the two directors initially elected from each 7-19 precinct within the district, the director with the most votes 7-20 shall serve a term ending in May 2006, and the other director shall 7-21 serve a term ending in May 2004. 7-22 (d) At the election, the board may submit to the voters 7-23 propositions to authorize issuance of bonds, a maintenance tax, and 7-24 a tax to make payments under a contract. 7-25 SECTION 11. ELECTION OF DIRECTORS. On the first Saturday in 7-26 May of each even-numbered year, the appropriate number of directors 7-27 shall be elected. 7-28 SECTION 12. EXCLUSION OF LAND FROM THE DISTRICT. (a) Land 7-29 may be excluded from the district as provided by Chapters 49 and 7-30 54, Water Code, and as provided by this section. 7-31 (b) Not later than two months after the temporary directors 7-32 qualify for office, the district shall provide written notice to 7-33 each retail sewer utility providing retail sewer utility service 7-34 within the boundaries of the district, according to the records of 7-35 the Texas Natural Resource Conservation Commission, stating: 7-36 (1) the existence of the district and its purposes; 7-37 and 7-38 (2) that the governing body of a retail sewer utility 7-39 may request that any area in the district in which the retail sewer 7-40 utility is providing retail sewer utility service be excluded from 7-41 the boundaries of the district. 7-42 (c) Notice provided under this section must be sent by 7-43 certified mail, return receipt requested. 7-44 (d) To have territory excluded from the district, a retail 7-45 sewer utility must file a written resolution with the district not 7-46 later than the 60th day after the date of receipt of the notice by 7-47 the retail sewer utility. The resolution must contain an accurate 7-48 description of the area to be excluded. 7-49 (e) At its next meeting after receiving a written 7-50 resolution, the board shall adopt an order excluding the area 7-51 described in the written resolution and redefining the boundaries 7-52 of the district to reflect the exclusion. 7-53 (f) Notwithstanding Subsections (b)-(e) of this section, a 7-54 retail sewer utility that is a municipality may, not later than one 7-55 year after the effective date of this Act, file with the district a 7-56 written resolution of the city council of the municipality 7-57 requesting that all or any part of the area within the corporate 7-58 limits or extraterritorial jurisdiction of the municipality be 7-59 excluded from the boundaries of the district if the area is not 7-60 within the service area of another retail sewer utility. Upon 7-61 receipt of a written resolution, the board shall, at its next 7-62 meeting, adopt an order excluding the area and redefining the 7-63 boundaries of the district to reflect the exclusion. 7-64 (g) It is expressly acknowledged for purposes of this Act 7-65 that the City of Granbury, in Hood County, Texas, is a retail sewer 7-66 utility. 7-67 SECTION 13. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 7-68 (a) The proper and legal notice of the intention to introduce this 7-69 Act, setting forth the general substance of this Act, has been 8-1 published as provided by law, and the notice and a copy of this Act 8-2 have been furnished to all persons, agencies, officials, or 8-3 entities to which they are required to be furnished by the 8-4 constitution and other laws of this state, including the governor, 8-5 who has submitted the notice and Act to the Texas Natural Resource 8-6 Conservation Commission. 8-7 (b) The Texas Natural Resource Conservation Commission has 8-8 filed its recommendations relating to this Act with the governor, 8-9 lieutenant governor, and speaker of the house of representatives 8-10 within the required time. 8-11 (c) All requirements of the constitution and laws of this 8-12 state and the rules and procedures of the legislature with respect 8-13 to the notice, introduction, and passage of this Act are fulfilled 8-14 and accomplished. 8-15 SECTION 14. EFFECTIVE DATE. This Act takes effect 8-16 immediately if it receives a vote of two-thirds of all the members 8-17 elected to each house, as provided by Section 39, Article III, 8-18 Texas Constitution. If this Act does not receive the vote 8-19 necessary for immediate effect, this Act takes effect September 1, 8-20 2001. 8-21 * * * * *