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By:  Keel (Senate Sponsor - Barrientos)                           H.B. No. 3565
	(In the Senate - Received from the House May 19, 2003; 
May 20, 2003, read first time and referred to Committee on Natural 
Resources; May 23, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 8, Nays 0; 
May 23, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 3565                                   By:  Barrientos

A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, powers, duties, operation, and financing of the Lazy Nine Municipal Utility District. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. DEFINITIONS. In this Act: (1) "Board" means the board of directors of the district. (2) "District" means the Lazy Nine Municipal Utility District. SECTION 2. CREATION. (a) A municipal utility district, to be known as the Lazy Nine Municipal Utility District, is created in Travis County, subject to approval at a confirmation election under Section 9 of this Act. (b) The district is a governmental agency and a political subdivision of this state. SECTION 3. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) The district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (c) All of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Section 59, Article XVI, Texas Constitution. SECTION 4. BOUNDARIES. The boundaries of the district are as follows: A 1,719.449 acre tract of land out of and part of the following eight (8) surveys: F. Sterzing survey no. 62, H. Pruett survey no. 51, Sam Wildy survey no. 527, c. J. Strother survey no. 606, Seale-Morris & Seale survey no. 61, W. A. Barlow survey no. 86, J. H. Johman survey no. 524 and E. Hallman survey no. 61, situated in Travis County, Texas, being a portion of those certain tracts of land called first tract and second tract conveyed to Mrs. O. H. Davenport by deed of record in volume 1214, page 472 of the deed records of Travis County, Texas (the "deed records"); said 1,719.449 acre tract being more particularly described by metes and bounds as follows: BEGINNING, at a concrete highway monument found in the southerly right-of-way of State Highway No. 71 (R.O.W. varies), being the northeasterly corner of that certain 453.54 acre tract of land conveyed to Gregory A. Kozmetsky by deed of record in Volume 8132, Page 262 of the Real Property Records of Travis County, Texas (The "Real Property Records"), same being the most northerly corner of said First Tract for the most northerly corner hereof; THENCE, S51°09'02"E, along the southerly line of State Highway No. 71, being the northerly line of said First Tract, same being the northerly line hereof, a distance of 590.29 feet to a 60d nail found at the northwesterly corner of that certain 2.766 acre tract of land called Tract 2 conveyed to Arthur Lee Sanders by deed of record in Volume 8522, Page 125 of the Real Property Records for an angle point hereof; THENCE, S00°26'50"W, leaving the southerly line of State Highway No. 71, and continuing along the northerly line hereof, being the northerly line of said First Tract, same being the westerly line of said Tract 2 and the westerly line of that certain 0.364 acre tract of land called Tract 1 conveyed to Arthur Lee Sanders by deed of record in Volume 8522, Page 125 of the Real Property Records, a distance of 747.71 feet to a 1/2 inch iron pipe found at the southwesterly corner of said Tract 1 for an angle point hereof; THENCE, continuing along the northerly line hereof, along and with a fence, being the northerly line of said First Tract, same being the southerly line of said Tract 1, in part the southerly line of said Tract 2, the southerly of that certain 2.34 acre tract of land called Tract 3 conveyed to Arthur Lee Sanders by deed of record in Volume 8522, Page 125 of the Real Property Records, the southerly line of that certain 3.91 acre tract of land conveyed to John W. Combs by deed of record in Volume 5829, Page 966 of the Deed records, the southerly line of that certain 4.1 acre tract of land conveyed to William Otto Combs by deed of record in Volume 2019, Page 514 of the Deed Records and the southerly line of that certain 2.1 acre tract of land conveyed to William Otto Combs by deed of record in Volume 1881, Page 194 of the Deed Records, the following ten (10) courses and distances: 1) S89°16'04"E, passing at a distance of 181.53 feet a fence post found at the beginning of a fence and continuing for a total distance of 514.91 feet to a fence post found for an angle point; 2) S86°12'59"E, a distance of 202.86 feet to a 1/2 inch iron rod found for an angle point; 3) S79°49'24"E, a distance of 143.52 feet to a 1/2 inch iron rod found for an angle point; 4) S88°06'26"E, a distance of 138.97 feet to a 1/2 inch iron rod found for an angle point; 5) N83'35'08"E, a distance of 181.40 feet to a 1/2 inch iron rod found for an angle point; 6) N84°27'36"E, a distance of 171.27 feet to a fence post found for an angle point; 7) S85°42'15"E, a distance of 37.57 feet to a fence post found for an angle point; 8) S75°25'37"E, a distance of 66.50 feet to a fence post found for an angle point; 9) N84°57'37"E, a distance of 174.95 feet to a fence post found for an angle point; 10) S89°11'36"E, a distance of 418.46 feet to a 1/2 inch iron pipe found at the northwesterly corner of that certain 5.375 acre tract of land conveyed to James Aaron Hudson by deed of record in Volume 12926, Page 2404 of the Real Property Records; THENCE, continuing along the northerly line hereof, being the northerly line of said First Tract, same being the westerly and southerly lines of said Hudson 5.375 acre tract, the following two (2) courses and distances: 1) S01°58'32"E, a distance of 471.85 feet to a 3/4 inch iron pipe found at the southwesterly corner of said Hudson 5.375 acre tract for an angle point hereof; 2) N88°27'05"E, a distance of 778.62 feet to a 1/2 inch iron rod found in the southerly line of State Highway No. 71, being the southeasterly corner of said Hudson 5.375 acre tract for an angle point hereof; THENCE, continuing along the northerly line hereof, being in part the northerly line of said First Tract and in part the northerly line of said Second Tract, same being the southerly line of State Highway No. 71, the following twenty (20) courses and distances: 1) Along a non-tangent curve to the right having a radius of 3819.84, a central angle of 01°24'04", an arc distance of 93.40 feet and a chord which bears S48°33'39"E, a distance of 93.40 feet to a concrete highway monument for the end of said curve; 2) S47°43'40"E, a distance of 471.66 feet to a concrete highway monument found for the point of curvature of a non-tangent curve to the left; 3) Along said non-tangent curve to the left having a radius of 2009.75 feet, a central angle of 17°14'18", an arc distance of 604.67 feet and a chord which bears S56°23'51"E, a distance of 602.39 feet to a concrete highway monument found for the end of said curve; 4) S65°00'59"E, a distance of 386.46 feet to a 1/2 inch iron rod set with cap for the point of curvature of a curve to the right; 5) Along said curve to the right having a radius of 1045.92 feet, a central angle of 19°27'13", an arc distance of 355.12 feet and a chord which bears S55°12'32"E, a distance of 353.42 feet to a 1/2 inch iron rod set with cap for the end of said curve; 6) S45°32'07"E, a distance of 492.28 feet to a concrete highway monument found for the point of curvature of a non-tangent curve to the left; 7) Along said non-tangent curve to the left having a radius of 1245.92 feet, a central angle of 20°04'19", an arc distance of 436.47 and a chord which bears S55°28'17"E, a distance of 434.24 feet to a concrete highway monument found for the end of said curve; 8) S65°34'29"E, a distance of 406.32 feet to a 1/2 inch iron rod set with cap for the point of curvature of a non-tangent curve to the right; 9) Along said non-tangent curve to the right having a radius of 1045.92 feet, a central angle of 24°05'24", an arc distance of 439.76 feet and a chord which bears S53°31'12"E, a distance of 436.52 feet to a concrete highway monument found for the end of said curve; 10) S41°34'34"E, a distance of 372.97 feet to a concrete highway monument found for the point of curvature of a non-tangent curve to the left; 11) Along said non-tangent curve to the left having a radius of 1245.85, a central angle of 28°41'02", an arc distance of 623.71 and a chord which bears S55°51'42"E, a distance of 617.21 feet to a 1/2 inch iron rod set with cap for the end of said curve; 12) S70°09'46"E, a distance of 279.53 feet to a concrete highway monument found for the point of curvature of a non-tangent curve to the right; 13) Along said non-tangent curve to the right having a radius of 5629.58, a central angle of 07°56'42", an arc distance of 780.63 feet and a chord which bears S66°12'39"E, a distance of 780.00 feet to a point for the end of said curve; THENCE, leaving the southerly line of State Highway No. 71, over and across said Second Tract, same being the easterly line hereof, the following six (6) courses and distances: 1) S01°57'57"E, a distance of 608.00 feet to an angle point; 2) S51°05'31"E, a distance of 523.00 feet to an angle point; 3) S04°28'34"E, a distance of 1298.00 feet to an angle point; 4) S17°44'05"E, a distance of 571.00 feet to an angle point; 5) S00°06'48"E, a distance of 810.00 feet to an angle point; 6) S14°11'47"E a distance of 764.00 feet to a point in the westerly line of that certain 122.61 acre tract of land conveyed to Dudley D. McCalla by deed of record in Volume 5337, Page 469 of the Deed Records, being in the southerly line of said Second Tract for an angle point hereof; THENCE, continuing along the easterly line hereof, being the southerly line of said Second Tract, same being the westerlyline of said McCalla 122.61 acre tract, along and with a fence, the following ten (10) courses and distances: 1) S16°38'51"W, a distance of 552.00 feet to a 1/2 inch iron rod set with cap for an angle point; 2) S20°22'32"W, a distance of 101.01 feet to a 1/2 inch iron rod set with cap for an angle point; 3) S23°26'28"W, a distance of 90.43 feet to a 1/2 inch iron rod set with cap for an angle point; 4) S30°43'32"W, a distance of 31.30 feet to a 14 inch Cedar tree at a fence angle for an angle point hereof; 5) S47°59'22"W, a distance of 30.05 feet to a 60d nail found at the most westerly corner of said McCalla 122.61 acre tract for an angle point; 6) S44°10'51"E, a distance of 692.15 feet to a 1/2 inch iron rod set with cap for an angle point; 7) S58°40'21"E, a distance of 259.20 feet to a 1/2 inch iron rod found for an angle point; 8) S02°07'19"E, a distance of 261.57 feet to a 16 inch Cedar tree at a fence angle for an angle point hereof; 9) S10°50'02"E, a distance of 84.28 feet to a 1/2 inch iron rod set with cap for an angle point; 10) S04°52'47"E, a distance of 298.75 feet to a 1/2 inch iron rod found at the southwesterly corner of said McCalla 122.61 acre tract, being a point in the northerly line of that certain 327.341 acre tract of land conveyed to Henry R. Heffington by deed of record in Volume 5246, Page 2045 of the Deed Records for the southeasterly corner hereof; THENCE, continuing along the southerly line hereof, being the northerly line of said Heffington 327.341 acre tract, southerly line of said Second Tract, same being along and with a fence, the following two (2) courses and distances: 1) S84°40'07"W, a distance of 396.25 feet to a 1/2 inch iron rod found for an angle point; 2) S39°52'13"W, a distance of 643.37 feet to a 1/2 inch iron rod found at northeasterly corner of that certain 226.240 acre tract of land conveyed to F/M 255 Joint Venture by deed of record in Volume 12801, Page 81 of the Real Property Records for an angle point; THENCE, along the southerly line hereof, being the southerly line of said Second Tract, same being the northerly line of said F/M 255 Joint Venture 226.240 acre tract, continuing along and with a fence, the following twenty-two (22) courses and distances: 1) N45°32'29"W, a distance of 135.38 feet to a 1/2 inch iron rod found for an angle point; 2) N32°13'05"W, a distance of 77.83 feet to a 12 inch Live Oak tree at a fence angle for an angle point hereof; 3) N28°17'27"W, a distance of 68.02 feet to a 1/2 inch iron rod found for an angle point; 4) N29°39'13"W, a distance of 59.82 feet to a 1/2 inch iron rod found for an angle point; 5) N25°51'34"W, a distance of 51.41 feet to a 22 inch Cedar tree at a fence angle for an angle point hereof; 6) N27°58'18"W, a distance of 61.26 feet to a 1/2 inch iron rod found for an angle point; 7) N26°22'18"W, a distance of 19.69 feet to a 16 inch Live Oak tree at a fence angle for an angle point hereof; 8) N23°05'26"W, a distance of 92.03 feet to a 1/2 inch iron rod found for an angle point; 9) N27°33'l7"W, a distance of 47.34 feet to a 1/2 inch iron rod set with cap for an angle point; 10) N29°42'38"W, a distance of 45.51 feet to a 1/2 inch iron rod found for an angle point; 11) N33°01'45"W, a distance of 20.27 feet to a 1/2 inch iron rod found for an angle point; 12) N36°03'00"W, a distance of 118.14 feet to a 1/2 inch iron rod found for an angle point; 13) N43°23'00"W, a distance of 53.33 feet to a 1/2 inch iron rod found for an angle point; 14) N49°44'51"W, a distance of 58.51 feet to a 14 inch Live Oak tree at a fence angle for an angle point hereof; 15) N42°18'26"W, a distance of 63.88 feet to a 1/2 inch iron rod set with cap for an angle point; 16) N35°47'19"W, a distance of 417.51 feet to a 1/2 inch iron rod found for an angle point; 17) N35°55'57"W, a distance of 264.76 feet to a 1/2 inch iron rod found for an angle point; 18) N35°23'52"W, a distance of 452.03 feet to a 1/2 inch iron rod found for an angle point; 19) N39°49'00"W, a distance of 439.63 feet to a 1/2 inch iron rod found for an angle point; 20) N51°32'45"W, a distance of 855.86 feet to a 1/2 inch iron rod found at the most northerly corner of said F/M 255 Joint Venture 226.240 acre tract for an angle point; 21) S50°49'26"W, a distance of 943.88 feet to a 60d nail found for an angle point; 22) S82°56'43"W, a distance of 862.76 feet to a 1/2 inch iron rod found in the easterly line of that certain 443.7304 acre tract of land conveyed to Jan M. Harris, Sara Lee Harris Wallace and Kay Harris by deed of record in Volume 12542, Page 260 of the Real Property Records, being the northwesterly corner of said F/M 255 Joint Venture 226.240 acre tract, same being the southwesterly corner of said Second Tract for an angle point; THENCE, continuing along the southerly line hereof, being in part the westerly line of said Second Tract, same being in part the easterly line of said Harris 443.7304 acre tract, continuing along and with a fence, the following fourteen (14) courses and distances: 1) N04°41'49"W, a distance of 1732.66 feet to a 1/2 inch iron rod set with cap for an angle point; 2) N04°47'02"W, a distance of 280.16 feet to a 1/2 inch iron rod set with cap for an angle point; 3) N03°29'21"W, a distance of 340.14 feet to a 1/2 inch iron rod set with cap for an angle point; 4) N03°25'43"W, a distance of 259.11 feet to a 1/2 inch iron rod set with cap for an angle point; 5) N01°55'24"W, a distance of 88.08 feet to a 20 inch Cedar tree at a fence angle for an angle point hereof; 6) N82°09'10"W, a distance of 29.32 feet to a 60d nail found for an angle point; 7) N28°51'28"W, a distance of 17.03 feet to a 60d nail found for an angle point; 8) N05°05'20"W, a distance of 20.23 feet to a 1/2 inch iron rod found for an angle point; 9) N08°48'44"E, a distance of 41.12 feet to a 1/2 inch iron rod found for an angle point; 10) N10°37'54"E, a distance of 135.21 feet to a 1/2 inch iron rod found for an angle point; 11) N19°41'13"E, a distance of 40.58 feet to a 60d nail found for an angle point; 12) N37°34'24"E, a distance of 72.42 feet to a 60d nail found for an angle point; 13) N12°02'45"E, a distance of 124.13 feet to a 60d nail found for an angle point; 14) N04°13'45"E, a distance of 27.86 feet to a 1/2 inch iron rod found at the northeasterly corner of said Harris 443.7304 acre tract, being the southeasterly corner of said First Tract for an angle point; THENCE, continuing along the southerly line hereof, being the southerly line of said First Tract, same being the northerly line of said Harris 443.7304 acre tract, continuing along and with a fence, the following two (2) courses and distances: 1) S89°05'48"W, a distance of 69.31 feet to a 1/2 inch iron rod found for an angle point; 2) S88°10'16"W, a distance of 2328.58 feet to a 1/2 inch iron pipe found at the northeasterly corner of that certain 1128.30 acre tract called Tract 1 conveyed to Jerome N. Gregoire by deed of record in Volume 13401, Page 596 of the Real Property Records, being the northwesterly corner of said Harris 443.7304 acre tract for an angle point; THENCE, S88°11'40"W, continuing along the southerly line hereof, being the southerly line of said First Tract, same being the northerly line of said Gregoire 1128.30 acre tract, continuing along and with a fence, a distance of 3316.76 feet to a 1/2 inch iron pipe found in the irregular easterly line of that certain 2601.5 acre tract of land called First Tract conveyed to William Michael Peacock by deed of record in Volume 12851, Page 635 of the Real Property Records for an angle point; THENCE, continuing along the southerly line hereof, being the southerly line of said First Tract, same being in part the irregular easterly and northerly lines of said 2601.5 acre Peacock tract, continuing along and with a fence, the following five (5) courses and distances: 1) N03°38'26"W, a distance of 638.53 feet to a 1/2 inch iron rod set with cap for an angle point; 2) N04°19'32"W, a distance of 752.53 feet to a cotton spindle found at the northeasterly corner of said 2601.5 acre Peacock tract for an angle point; 3) S88°17'27"W, a distance of 1347.71 feet to a fence post found for an angle point; 4) S28°22'30"W, a distance of 730.45 feet to a cotton spindle found for an angle point; 5) N61°34'59"W, a distance of 1595.89 feet to a fence post found in the easterly line of that certain 320 acre tract of land called Second Tract conveyed to William Michael Peacock by deed of record in Volume 12851, Page 635 of the Real Property Records, being the southwesterly corner of said First Tract for the southwesterly corner hereof; THENCE, along the westerly line hereof, being the westerly line of said First Tract, same being in part the easterly and northerly lines of said Peacock 320 acre tract, continuing along and with a fence, the following two (2) courses and distances: 1) N26°42'35"E, a distance of 428.73 feet to a cotton spindle found at the northeasterly corner of said Peacock 320 acre tract for an angle point; 2) N62°04'20"W, a distance of 3584.02 feet to a 1/2 inch iron rod found at the southeasterly corner of that certain 109.733 acre tract of land conveyed to Gregory A. Kozmetsky by deed of record in Volume 7986, Page 412 of the Real Property Records for an angle point; THENCE, N28°15'21"E, continuing along the westerly line hereof, being the westerly line of said First Tract, same being the easterly line of said Kozmetsky 109.733 acre tract, a distance of 2638.72 feet to a 1/2 inch iron rod found in the southerly line of said Kozmetsky 453.54 acre tract, being the northeasterly corner of said Kozmetsky 109.733 acre tract for an angle point; THENCE, continuing along the westerly line hereof, being the westerly line of said First Tract, same being in part the southerly and easterly lines of said Kozmetsky 453.54 acre tract, continuing along and with a fence, the following three (3) courses and distances: 1) S61°52'07"E, a distance of 3589.01 feet to a fence post found at the southeasterly corner of said kozmetsky 453.54 acre tract for an angle point; 2) N28°13'55"E, a distance of 2904.91 feet to a fence post found for an angle point; 3) N88°32'20"E, a distance of 1379.32 feet to the POINT OF BEGINNING, containing an area of 1,719.449 acres (74,899,209 sq. ft.) of land, more or less, within these metes and bounds. SECTION 5. FINDINGS RELATIVE TO BOUNDARIES. The legislature finds that the boundaries and field notes of the district form a closure. If a mistake is made in the field notes or in copying the field notes in the legislative process, the mistake does not affect in any way: (1) the organization, existence, or validity of the district; (2) the right of the district to impose taxes; or (3) the legality or operation of the district or the board. SECTION 6. APPLICABILITY OF OTHER LAW. This Act prevails over any provision of general law that is in conflict or inconsistent with this Act. SECTION 7. BOARD OF DIRECTORS. (a) The district is governed by a board of five directors. (b) Temporary directors serve until directors are elected under Section 9 of this Act. (c) Temporary directors of the district, or of a new district created by division of the district under Section 13 of this Act, are not required to own land in or be residents of the district. (d) Permanent directors serve staggered four-year terms. (e) Each director must qualify to serve as director in the manner provided by Section 49.055, Water Code. SECTION 8. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) C.A. Elder; (2) Gary Valdez; (3) Vincent Huebinger; (4) Bill Simpson; and (5) Cord Shifflett. (b) If a temporary director fails to qualify for office, the temporary directors who have qualified shall appoint a person to fill the vacancy. If at any time there are fewer than three qualified temporary directors, the Texas Commission on Environmental Quality shall appoint the necessary number of persons to fill all vacancies on the board. SECTION 9. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) The temporary board shall call and hold an election to confirm establishment of the district and to elect initial directors under Section 49.102, Water Code. (b) At the confirmation and initial directors' election the board may submit to the voters a proposition to authorize: (1) an issuance of bonds; (2) a maintenance tax; or (3) a tax to fund payments required under a contract. (c) Section 41.001(a), Election Code, does not apply to a confirmation and initial directors' election held as provided by this section. SECTION 10. ELECTION OF DIRECTORS. (a) On the first Saturday in May of the first even-numbered year after the year in which the district is authorized to be created at a confirmation election, an election shall be held in the district for the election of two directors to replace the two initial directors serving shorter terms from the confirmation election. (b) On the first Saturday in May of each subsequent even-numbered year following the election, the appropriate number of directors shall be elected. SECTION 11. GENERAL POWERS. The district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapters 30, 49, 50, and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. SECTION 12. ANNEXATION. The board may annex land as provided by Chapter 49 or Chapter 54, Water Code. SECTION 13. DIVISION OF DISTRICT. (a) Notwithstanding any other law, either before or after annexing land into the district under Section 12 of this Act, and before issuing indebtedness secured by taxes or net revenues, the board may divide the territory of the district, including any annexed territory, into two or more new districts. (b) A new district created by division of the district must be at least 100 acres in size. SECTION 14. ELECTION FOR DIVISION OF DISTRICT. (a) On a board resolution consenting to the terms and conditions of a division under Section 13 of this Act, including a plan for payment and performance of any outstanding obligations of the district, and a metes and bounds description of the proposed new districts, the board shall order an election to be held in the district to determine if the district should be divided as proposed. (b) The board shall give notice of the election not later than the 20th day before the election in the manner provided by Section 49.102, Water Code. (c) Not later than the 30th day after the date of the election the district shall provide written notice of the plan for division to: (1) the Texas Commission on Environmental Quality; (2) the attorney general; (3) the commissioners court of each county in which each new district is located; and (4) any municipality having extraterritorial jurisdiction over the land within each new district. SECTION 15. GOVERNANCE OF DISTRICTS AFTER DIVISION. (a) On a vote of a majority of the qualified electors in the district in favor of dividing the district in an election held under Section 14 of this Act, the district shall be divided. (b) The resulting new districts shall be assigned consecutive letters, corresponding to the number of the new district. (c) The resulting new districts shall be separate districts and shall be governed as separate districts. (d) Until the 91st day after the date of the election approving the division of the district, the board shall continue to act on behalf of the district to wind up the affairs of the district. SECTION 16. ELECTION OF DIRECTORS OF NEW DISTRICT. (a) After an election approving the division of the district, the directors of the board shall: (1) continue to act as directors of one of the new districts; and (2) appoint temporary directors for each of the other new districts not later than the 90th day after the date of the election approving the division of the district. (b) Temporary directors appointed under Subsection (a) of this section shall serve until an election for permanent directors is held on the next uniform election date under Section 41.001(a), Election Code. The temporary directors of each new district must qualify under Section 49.055, Water Code, not later than the 90th day after the date of the election approving the district. The temporary directors shall take office at the expiration of this 90-day period. (c) On election of directors under Subsection (b) of this section, the three directors receiving the greatest number of votes shall serve until May of the first even-numbered year that is four years after the date of the election and two directors shall serve until May of the first even-numbered year that is two years after the date of the election. (d) The board of each new district shall approve the bond of each of its directors. SECTION 17. CONTINUING POWERS AND OBLIGATIONS OF NEW DISTRICTS. (a) Each new district shall have the power to incur and pay debts and shall in every respect have the full power and authority of the district created and governed by this Act. (b) If the district is divided in an election under Section 14 of this Act, the current obligations and any bond authorizations of the district are not impaired. The debts shall be paid by taxes, revenues, or assessments levied on the land in the district as if the district had not been divided or by contributions from each new district on terms stated and agreed to in the division plan proposed by the board and approved by an election under Section 14 of this Act. (c) Any other obligation of the district shall be divided pro rata among the new districts on an acreage basis or on other terms that are satisfactory to the new districts. SECTION 18. CONTRACT AUTHORITY OF NEW DISTRICTS. The new districts may contract with each other for water, wastewater, and any other matters the board of each new district considers appropriate. SECTION 19. BOND ISSUANCE BY NEW DISTRICT. (a) A new district that is created as a result of an election approving the division of the district as provided by Section 14 of this Act may issue bonds payable wholly or partially from ad valorem taxes on the approval of a majority of the residents voting in an election called and held for that purpose. (b) Notice of the bond election shall be given as provided by Section 49.106, Water Code. SECTION 20. MAINTENANCE TAX APPROVAL FOR NEW DISTRICT. A new district that is created as a result of an election approving the division of the district as provided by Section 14 of this Act may levy a maintenance tax on the approval of a majority of the residents voting in an election called and held for that purpose. SECTION 21. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (b) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (c) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 22. EFFECTIVE DATE; EXPIRATION DATE. (a) This Act takes effect September 1, 2003. (b) If the creation of the district is not confirmed at a confirmation election held under Section 9 of this Act before September 1, 2005, this Act expires on that date.
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