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                                  * * * * *