Bill Text: TX SB19 | 2011 | 82nd Legislature 1st Special | Introduced

Bill Title: Relating to the operation, powers, and duties of certain water districts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-31 - Filed [SB19 Detail]

Download: Texas-2011-SB19-Introduced.html
 
 
  By: Fraser S.B. No. 19
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the operation, powers, and duties of certain water
  districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  GENERAL PROVISIONS
         SECTION 1.01.  Section 388.005, Health and Safety Code, is
  amended by adding Subsections (g) and (h) to read as follows:
         (g)  Except as provided by Subsection (h), this section does
  not apply to the electricity consumption of a district as defined by
  Section 36.001 or 49.001, Water Code, that relates to the operation
  and maintenance of facilities or improvements for:
               (1)  wastewater collection and treatment;
               (2)  water supply and distribution; or
               (3)  storm water diversion, detention, or pumping.
         (h)  At least once every five years, a political subdivision
  that is a district as defined by Section 36.001 or 49.001, Water
  Code, shall for district facilities described by Subsection (g):
               (1)  evaluate the consumption of electricity;
               (2)  establish goals to reduce the consumption of
  electricity; and
               (3)  identify and implement cost-effective energy
  efficiency measures to reduce the consumption of electricity.
         SECTION 1.02.  Section 43.0751(a)(1), Local Government
  Code, is amended to read as follows:
               (1)  "District" means a conservation and reclamation
  [water control and improvement] district [or a municipal utility
  district created or] operating under Chapter 49 [51 or 54], Water
  Code. The term does not include a special utility district
  operating under Chapter 65, Water Code, or a groundwater
  conservation district operating under Chapter 36, Water Code.
         SECTION 1.03.  Section 43.0751, Local Government Code, is
  amended by adding Subsection (r) to read as follows:
         (r)  To be annexed for limited purposes under this section,
  an area must be:
               (1)  in the municipality's extraterritorial
  jurisdiction; and
               (2)  contiguous to the corporate or limited purpose
  boundaries of the municipality, unless the district consents to
  noncontiguous annexation pursuant to a strategic partnership
  agreement with the municipality.
         SECTION 1.04.  Section 375.161, Local Government Code, is
  amended to read as follows:
         Sec. 375.161.  CERTAIN RESIDENTIAL PROPERTY EXEMPT.
  (a)  The board may not impose an impact fee, assessment, tax, or
  other requirement for payment, construction, alteration, or
  dedication under this chapter on single-family detached
  residential property, duplexes, triplexes, and quadraplexes.
         (b)  This section does not apply to an impact fee,
  assessment, tax, or other requirement for payment for water, sewer,
  drainage, reclamation, flood control, road, or park and
  recreational services or improvements of a district operating under
  this chapter that provides, or proposes to provide, those services
  or improvements.
         SECTION 1.05.  Section 552.014, Local Government Code, is
  amended to read as follows:
         Sec. 552.014.  CONTRACTS WITH WATER DISTRICTS OR NONPROFIT
  CORPORATIONS. (a)  In this section:
               (1)  "Project" means a water supply or treatment
  system, a water distribution system, a sanitary sewage collection
  or treatment system, works or improvements necessary for drainage
  of land, recreational facilities, roads and improvements in aid of
  roads, or facilities to provide firefighting services.
               (2)  "Water district" [, "water district"] means a
  district created under Article XVI, Section 59, of the Texas
  Constitution.
         (b)  A municipality may enter into a contract with a water
  district or with a corporation organized to be operated without
  profit under which the district or corporation will acquire for the
  benefit of and convey to the municipality, either separately or
  together, one or more projects [a water supply or treatment system,
  a water distribution system, a sanitary sewage collection or
  treatment system, or works or improvements necessary for drainage
  of land in the municipality]. In connection with the acquisition,
  the district or corporation shall improve, enlarge, or extend the
  existing municipal facilities as provided by the contract.
         (c)  If the contract provides that the municipality assumes
  ownership of the project [water, sewer, or drainage system] on
  completion of construction or at the time that all debt incurred by
  the district or corporation in the acquisition, construction,
  improvement, or extension of the project [system] is paid in full,
  the municipality may make payments to the district or corporation
  for project [water, sewer, or drainage] services to part or all of
  the residents of the municipality. The contract may provide for
  purchase of the project [system] by the municipality through
  periodic payments to the district or corporation in amounts that,
  together with the net income of the district or corporation, are
  sufficient to pay the principal of and interest on the bonds of the
  district or corporation as they become due. The contract may
  provide:
               (1)  that any payments due under this section are
  payable from and are secured by a pledge of a specified part of the
  revenues of the municipality, including revenues from municipal
  sales and use taxes [municipal water system, sewer system, or
  drainage system];
               (2)  for the levying of a tax to make payments due under
  this section; or
               (3)  that the payments due under this section be made
  from a combination of revenues [from the system] and taxes.
         (d)  The contract may provide that the district or
  corporation may use the streets, alleys, and other public ways and
  places of the municipality for project [water, sewer, or drainage]
  purposes for a period that ends at the time the indebtedness of the
  district or corporation is paid in full and the municipality
  acquires title to the project [system] in accordance with this
  section.
         (e)  The contract may provide for the operation of the
  project [system] by the municipality, and, if so authorized, the
  municipality may operate the project [system].
         (f)  A contract under this section must be authorized by a
  majority vote of the governing body of the municipality.
         (g)  This section does not authorize a water district or
  corporation described by Subsection (b) to participate in a project
  that the water district or corporation is not authorized to
  participate in under other law.
         SECTION 1.06.  Section 13.247, Water Code, is amended by
  adding Subsections (a-1) and (a-2) to read as follows:
         (a-1)  Subsection (a-2) applies only to a municipality that:
               (1)  has a population of more than 95,000 and is in a
  county that has a population of more than 200,000 and borders Lake
  Palestine;
               (2)  has a population of more than 30,000 and is in a
  county that has a population of less than 90,000 and borders Lake
  Ray Hubbard;
               (3)  has a population of more than 4,500 and that:
                     (A)  borders Lake Lyndon B. Johnson; and
                     (B)  is located in a county that has a population
  of less than 45,000 and in which at least one state park and one
  national wildlife refuge are located; or
               (4)  has a population of less than 3,000 and is located
  wholly or partly in a county with a population of more than 1.7
  million and that is adjacent to a county with a population of more
  than two million.
         (a-2)  Notwithstanding Subsection (a), a municipality
  described by Subsection (a-1) may provide retail water and sewer
  utility service in an area certificated to another retail public
  utility without first having obtained from the commission a
  certificate of public convenience and necessity that includes the
  area to be served if:
               (1)  the area is located within the boundaries of the
  municipality; and
               (2)  the municipality provides notice to the commission
  and the other retail public utility before the municipality begins
  providing service to the area.
         SECTION 1.07.  Section 13.255(j), Water Code, is amended to
  read as follows:
         (j)  This section shall apply only in a case where:
               (1)  the retail public utility that is authorized to
  serve in the certificated area that is annexed or incorporated by
  the municipality is a nonprofit water supply or sewer service
  corporation, a special utility district under Chapter 65, Water
  Code, a fresh water supply district under Chapter 53, Water Code;
  [or]
               (2)  the retail public utility that is authorized to
  serve in the certificated area that is annexed or incorporated by
  the municipality is a retail public utility, other than a nonprofit
  water supply or sewer service corporation, and whose service area
  is located entirely within the boundaries of a municipality with a
  population of 1.7 million or more according to the most recent
  federal census; or
               (3)  the retail public utility that is authorized to
  serve in the certificated area that is annexed or incorporated by
  the municipality is a retail public utility, other than a nonprofit
  water supply or sewer service corporation, and the service area to
  be acquired is wholly located in a municipality that has a
  population of more than 30,000 and is in a county that has a
  population of less than 90,000 and borders Lake Ray Hubbard.
         SECTION 1.08.  Section 36.0151, Water Code, is amended by
  adding Subsections (c) and (d) to read as follows:
         (c)  Before September 1, 2015, the commission may not create
  a groundwater conservation district under this section in a county:
               (1)  in which the annual amount of surface water used is
  more than 50 times the annual amount of groundwater produced;
               (2)  that is located in a priority groundwater
  management area; and
               (3)  that has a population greater than 2.3 million.
         (d)  To the extent of a conflict between this section and
  Section 35.012, this section prevails.
         SECTION 1.09.  Section 36.1071, Water Code, is amended by
  amending Subsections (c) and (f) and adding Subsection (f-1) to
  read as follows:
         (c)  The commission and the Texas Water Development Board
  shall provide technical assistance to a district in the development
  of the management plan required under Subsection (a) that [which]
  may include, if requested by the district, a preliminary review and
  comment on the plan prior to final approval by the Texas Water
  Development Board [board].  If such review and comment by the
  commission is requested, the commission shall provide comment not
  later than 30 days from the date the request is received.
         (f)  [The district shall adopt rules necessary to implement
  the management plan.]  Prior to the development of the district's
  first management plan and [its] approval of that plan under Section
  36.1072, the district:
               (1)  [may not adopt rules other than rules pertaining
  to the registration and interim permitting of new and existing
  wells and rules governing spacing and procedure before the  
  district's board; however, the district may not adopt any rules
  limiting the production of wells, except rules requiring that
  groundwater produced from a well be put to a nonwasteful,
  beneficial use.   The district] may accept applications for permits
  under Section 36.113, provided the district does not act on any such
  application until the district's management plan is approved as
  provided in Section 36.1072;
               (2)  may adopt rules pertaining to the registration,
  interim permitting, metering, production reporting, spacing, and,
  where applicable, fee payment for authorized or actual production
  of water from new and existing wells;
               (3)  may adopt rules governing procedure before the
  district's board; and
               (4)  may not adopt any rules limiting the production of
  wells, except rules requiring that groundwater produced from a well
  be put to a nonwasteful, beneficial use.
         (f-1)  After a management plan is finally approved under
  Section 36.1072, the district shall adopt or amend rules limiting
  the production of wells or allocating groundwater as necessary to
  implement the management plan and achieve the applicable desired
  future condition.  A district may not adopt or amend rules limiting
  the production of wells or allocating groundwater if the district
  fails to:
               (1)  adopt a management plan as required by this
  section;
               (2)  submit a management plan to the executive
  administrator as required by Section 36.1072; and
               (3)  receive approval of the management plan under
  Section 36.1072.
         SECTION 1.10.  Section 36.1072, Water Code, is amended by
  amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  Once the executive administrator has granted
  administrative approval to [approved] a management plan:
               (1)  the executive administrator may not revoke but may
  require revisions to the approved [groundwater conservation
  district] management plan as provided by Subsection (g); and
               (2)  the executive administrator may request
  additional information from the district if the information is
  necessary to clarify, modify, or supplement previously submitted
  material[, but a request for additional information does not render
  the management plan unapproved].
         (c-1)  Not later than the 60th day after the date of the
  administrative approval of a district's management plan under
  Subsection (c), the executive administrator shall review the
  management plan to determine whether goals of the management plan
  are consistent with the achievement of the desired future
  conditions established under Section 36.108(d) that are applicable
  to all or part of the district, considering any available
  information regarding groundwater levels, and:
               (1)  request additional information from the district;
               (2)  recommend that the district make substantive
  changes to the management plan; or
               (3)  approve the management plan.
         SECTION 1.11.  Section 36.1073, Water Code, is amended to
  read as follows:
         Sec. 36.1073.  AMENDMENT TO MANAGEMENT PLAN. Any amendment
  to a district's [the] management plan shall be submitted to the
  executive administrator within 60 days following adoption of the
  amendment by the district's board.  The executive administrator
  shall review and approve any amendment that [which] substantially
  affects the management plan in accordance with the procedures
  established under Section 36.1072.
         SECTION 1.12.  Section 36.108(n), Water Code, is amended to
  read as follows:
         (n)  The districts shall prepare [a] revised conditions
  [plan] in accordance with development board recommendations and
  hold, after notice, at least one public hearing at a central
  location in the [groundwater] management area.  After consideration
  of all public and development board comments, the districts shall
  revise the conditions and submit the conditions to the development
  board for review.
         SECTION 1.13.  Section 36.118, Water Code, is amended by
  adding Subsections (e-1) and (e-2) to read as follows:
         (e-1)  Except as provided by Subsection (e-2), in addition to
  other remedies provided by law, the district is entitled to recover
  the district's attorney's fees, court costs, and reasonable
  expenses incurred in closing or capping the well from the owner of
  the land on which the well is located.
         (e-2)  An entity that drills a well to develop subsurface
  resources not owned by the landowner is liable for expenses
  incurred in closing or capping the well, unless the landowner
  assumes responsibility for the well.
         SECTION 1.14.  Section 36.207, Water Code, is amended to
  read as follows:
         Sec. 36.207.  USE OF PRODUCTION [PERMIT] FEES AUTHORIZED BY
  SPECIAL LAW.  A district may use funds obtained from production
  [permit] fees collected pursuant to the special law governing the
  district for any purpose consistent with the district's approved
  [certified water] management plan including, without limitation,
  making grants, loans, or contractual payments to achieve,
  facilitate, or expedite reductions in groundwater pumping or the
  development or distribution of alternative water supplies.
         SECTION 1.15.  Section 36.301, Water Code, is amended to
  read as follows:
         Sec. 36.301.  VIOLATIONS RELATED TO [FAILURE TO SUBMIT A]
  MANAGEMENT PLAN. The commission shall take appropriate action
  under Section 36.303 if:
               (1)  a district adopts or amends a rule in violation of
  Section 36.1071(f-1);
               (2)  [If] a district [board] fails to submit a
  management plan or to receive approval [certification] of the [its]
  management plan under Section 36.1072;
               (3)  a district fails to timely readopt the management
  plan or to submit the readopted management plan to the executive
  administrator for approval in accordance with Section 36.1072(f);
               (4)  the executive administrator determines that a
  readopted management plan does not meet the requirements for
  approval, and the district has exhausted all appeals; or
               (5)  a district fails to submit or receive approval
  [certification] of an amendment to the management plan under
  Section 36.1073[, the commission shall take appropriate action
  under Section 36.303].
         SECTION 1.16.  Section 49.059, Water Code, is amended to
  read as follows:
         Sec. 49.059.  [DISQUALIFICATION OF] TAX ASSESSOR AND
  COLLECTOR. (a)  The district may employ or contract with any
  person to serve as its tax assessor and collector who is:
               (1)  an individual certified as a registered Texas
  assessor-collector; or
               (2)  a firm, organization, association, partnership,
  corporation, or other legal entity if an individual certified as a
  registered Texas assessor-collector owns an interest in or is
  employed by the firm, organization, association, partnership,
  corporation, or other legal entity.
         (b)  A tax assessor and collector employed or contracted for
  under this section is not required to be a natural person.
         (c)  A firm, organization, association, partnership,
  corporation, or other legal entity serving as district tax assessor
  and collector shall give a bond as required by Section 49.057 for a
  natural person.
         (d)  No person may serve as tax assessor and collector of a
  district providing potable water or sewer utility services to
  household users if that person:
               (1)  is a natural person related within the third
  degree of affinity or consanguinity to any developer of property in
  the district, a member of the board, or the manager, engineer, or
  attorney for the district;
               (2)  is or was within two years immediately preceding
  the assumption of assessment and collection duties with the
  district an employee of any developer of property in the district or
  any director, manager, engineer, or attorney for the district;
               (3)  owns an interest in or is employed by any
  corporation organized for the purpose of tax assessment and
  collection services, a substantial portion of the stock of which is
  owned by a developer of property within the district or any
  director, manager, engineer, or attorney for the district; or
               (4)  is directly or through a corporation developing
  land in the district or is a director, engineer, or attorney for the
  district.
         (e) [(b)]  Within 60 days after the board determines a
  relationship or employment exists which constitutes a
  disqualification under Subsection (d) [(a)], it shall replace the
  person serving as tax assessor and collector with a person who would
  not be disqualified.
         (f) [(c)]  Any person who wilfully violates the provisions
  of Subsection (d) [(a)] is guilty of a misdemeanor and on conviction
  shall be fined not less than $100 nor more than $1,000.
         (g) [(d)]  As used in this section, "developer of property in
  the district" has the same meaning as in Section 49.052(d).
         SECTION 1.17.  Section 49.063, Water Code, is amended to
  read as follows:
         Sec. 49.063.  NOTICE OF MEETINGS. (a)  Notice of meetings
  of the board shall be given as set forth in the open meetings law,
  Chapter 551, Government Code, except that if a district does not
  have a meeting place within the district, the district shall post
  notice of its meeting at a public place within the district
  specified by the board in a written resolution, rather than at its
  administrative office. The board shall specify such public place
  to be a bulletin board or other place within the district which is
  reasonably available to the public.
         (b)  The validity of an action taken at a board meeting is not
  affected by:
               (1)  [Neither] failure to provide notice of the meeting
  if the meeting is a regular meeting;
               (2)  [nor] an insubstantial defect in notice of the
  [any] meeting; or
               (3)  failure of a county clerk to timely or properly
  post or maintain public access to a notice of the meeting if notice
  of the meeting is furnished to the county clerk in sufficient time
  for posting under Section 551.043(a) or 551.045, Government Code
  [shall affect the validity of any action taken at the meeting].
         SECTION 1.18.  Sections 49.102(a), (b), (c), and (h), Water
  Code, are amended to read as follows:
         (a)  Before issuing any bonds or other obligations, an
  election shall be held within the boundaries of the proposed
  district on a uniform election date provided by Section 41.001,
  Election Code, to determine if the proposed district shall be
  established and, if the directors of the district are required by
  law to be elected, to elect permanent directors.
         (b)  Notice of a confirmation or director election shall
  state the day and place or places for holding the election, the
  propositions to be voted on, and, if applicable, the number of
  directors to be voted on.
         (c)  The ballots for a confirmation election shall be printed
  to provide for voting "For District" and "Against District."
  Ballots for a directors election shall provide the names of the
  persons appointed by the governing body who qualified and are
  serving as temporary directors at the time the election is called.
  If the district has received an application by a write-in
  candidate, the [The] ballots shall also have blank places after the
  names of the temporary directors in which a voter may write the
  names of any candidates appearing on the list of write-in
  candidates required by Section 146.031, Election Code [other
  persons for directors].
         (h)  Unless otherwise agreed, the elected directors shall
  decide the initial terms of office by lot, with a simple majority of
  the elected directors serving until the second succeeding directors
  election and the remaining elected directors serving until the next
  directors election.
         SECTION 1.19.  Sections 49.103(a) and (b), Water Code, are
  amended to read as follows:
         (a)  Except as provided by Section 49.102, the members of the
  board of a district shall serve staggered [for] four-year terms.
         (b)  After confirmation of a district, an [An] election shall
  be held on the uniform election date, provided by Section 41.001,
  [established by the] Election Code, in May of each even-numbered
  year to elect the appropriate number of directors.
         SECTION 1.20.  Subchapter D, Chapter 49, Water Code, is
  amended by adding Section 49.1045 to read as follows:
         Sec. 49.1045.  CERTIFICATION OF ELECTION RESULTS IN LESS
  POPULOUS DISTRICTS. (a)  This section applies only to a district
  that:
               (1)  has 10 or fewer registered voters; and
               (2)  holds an election jointly with a county in which
  the district is wholly or partly located.
         (b)  A district may provide for an inquiry into and
  certification of the voting results of an election under this
  section if:
               (1)  the election results indicate that the number of
  votes cast in the election was greater than the number of registered
  voters in the district;
               (2)  the board determines that the election results are
  likely to be disputed in court; and
               (3)  the board can determine from the official list of
  registered voters prepared by the county voter registrar or county
  elections administrator for the district election which voters were
  qualified to vote in the district election and can determine from
  the signature roster from the joint election who voted in the joint
  election.
         (c)  To certify the district votes, the board by rule shall
  adopt a procedure to determine for each person who signed the
  signature roster as a voter in the joint election:
               (1)  whether the person's address on the day of the
  election was in the district; and
               (2)  how the person voted in the district election.
         (d)  The certified votes are the official election results.
         (e)  Certification of the results under this section does not
  preclude the filing of an election contest.
         SECTION 1.21.  Sections 49.105(c) and (d), Water Code, are
  amended to read as follows:
         (c)  If the number of directors is reduced to fewer than a
  majority or if a vacancy continues beyond the 90th day after the
  date the vacancy occurs, the vacancy or vacancies may [shall] be
  filled by appointment by the commission if the district is required
  by Section 49.181 to obtain commission approval of its bonds or by
  the county commissioners court if the district was created by the
  county commissioners court, regardless of whether a petition has
  been presented to the board under Subsection (b). An appointed
  director shall serve for the unexpired term of the director he or
  she is replacing.
         (d)  In the event of a failure to elect one or more members of
  the board of a district resulting from the absence of, or failure to
  vote by, the qualified voters in an election held by the district,
  the current members of the board or temporary board holding the
  positions not filled at such election shall be deemed to have been
  elected [reelected] and shall serve an additional term of office,
  or, in the case of a temporary board member deemed elected under
  this subsection, the initial term of office.
         SECTION 1.22.  Section 49.108, Water Code, is amended by
  adding Subsections (g), (h), and (i) to read as follows:
         (g)  On or before the first day for early voting by personal
  appearance at an election held to authorize a contract, a
  substantially final form of the contract must be filed in the office
  of the district and must be open to inspection by the public. The
  contract is not required to be attached as an exhibit to the order
  calling the election to authorize the contract.
         (h)  A single contract may contain multiple purposes or
  provisions for multiple facilities authorized by one or more
  constitutional provisions. The contract may generally describe the
  facilities to be acquired or financed by the district without
  reference to specific constitutional provisions. A contract
  described by this subsection may be submitted for approval in a
  single proposition at an election.
         (i)  A contract between districts to provide facilities or
  services is not required to specify the maximum amount of bonds or
  expenditures authorized under the contract if:
               (1)  the contract provides that the service area cannot
  be enlarged without the consent of at least two-thirds of the boards
  of directors of the districts that are:
                     (A)  included in the service area as proposed to
  be enlarged; or
                     (B)  served by the facilities or services provided
  in the contract;
               (2)  the contract provides that bonds or expenditures,
  payable wholly or partly from contract taxes, are issued or made:
                     (A)  on an emergency basis; or
                     (B)  to purchase, construct, acquire, own,
  operate, repair, improve, or extend services or facilities
  necessary to comply with changes in applicable regulatory
  requirements; or
               (3)  the contract provides that the bonds or
  expenditures require prior approval by any district that is
  obligated to pay debt service on those bonds or to pay for those
  expenditures wholly or partly with contract taxes.
         SECTION 1.23.  Subchapter D, Chapter 49, Water Code, is
  amended by adding Sections 49.109, 49.110, 49.111, 49.112, and
  49.113 to read as follows:
         Sec. 49.109.  AGENT DURING ELECTION PERIOD. The board may
  appoint a person, including a district officer, employee, or
  consultant, to serve as the district's agent under Section 31.123,
  Election Code.
         Sec. 49.110.  ELECTION JUDGE. (a)  The notice requirements
  for the appointment of a presiding election judge under Section
  32.009, Election Code, do not apply to an election held by a
  district.
         (b)  To serve as an election judge in an election held by a
  district, a person must be a registered voter of the county in which
  the district is wholly or partly located. To the extent of any
  conflict with Section 32.051, Election Code, this section controls.
         Sec. 49.111.  EXEMPTIONS FROM USE OF ACCESSIBLE VOTING
  SYSTEMS. (a)  Notwithstanding Sections 61.012 and 61.013,
  Election Code, a district is exempt from the acquisition, lease, or
  use of an electronic voting system for an election if:
               (1)  the election is a confirmation election or an
  election held jointly with a confirmation election on the same date
  and in conjunction with the confirmation election, except for an
  election in which a federal office appears on the ballot;
               (2)  the most recently scheduled district directors'
  election was not held, as provided by Section 2.053(b), Election
  Code; or
               (3)  fewer than 250 voters voted at the most recently
  held district directors' election.
         (b)  A district eligible for the exemption under Subsection
  (a) must publish notice in a newspaper of general circulation in an
  area that includes the district or mail notice to each voter in the
  district regarding the district's intention to hold an election
  without providing a voting station that meets the requirements for
  accessibility under 42 U.S.C. Section 15481(a)(3) on election day
  and during the period for early voting by personal appearance. The
  notice must be published or mailed not later than the later of:
               (1)  the 75th day before the date of the election; or
               (2)  the date on which the district adopts the order
  calling the election.
         (c)  The notice required by Subsection (b) must:
               (1)  provide that any voter in the district may request
  the use of a voting station that meets the accessibility
  requirements for voting by a person with a disability; and
               (2)  provide information on how to submit such a
  request.
         (d)  The district shall comply with a request for an
  accessible voting station if the request is received not later than
  the 45th day before the date of the election.
         Sec. 49.112.  CANCELLATION OF ELECTION; REMOVAL OF BALLOT
  MEASURE. Before the first day of early voting by personal
  appearance, the board by order or resolution may cancel an election
  called at the discretion of the district or may remove from the
  ballot a measure included at the discretion of the district. A copy
  of the order or resolution must be posted during the period for
  early voting by personal appearance and on election day at each
  polling place that is used or that would have been used in the
  election.
         Sec. 49.113.  NOTICE FOR FILING FOR PLACE ON BALLOT. A
  notice required by Section 141.040, Election Code, must be posted
  at the district's administrative office in the district or at the
  public place established by the district under Section 49.063 of
  this chapter not later than the 30th day before the deadline for a
  candidate to file an application for a place on the ballot of a
  district directors' election.
         SECTION 1.24.  Section 49.151(c), Water Code, is amended to
  read as follows:
         (c)  The board may allow disbursements of district money to
  be transferred by federal reserve wire system or by electronic
  means. The board by resolution may allow the wire or electronic
  transfers to accounts in the name of the district or accounts not in
  the name of the district.
         SECTION 1.25.  Sections 49.154(a) and (c), Water Code, are
  amended to read as follows:
         (a)  The board may declare an emergency in the matter of
  funds not being available to pay principal of and interest on any
  bonds of the district payable in whole or in part from taxes or to
  meet any other needs of the district and may issue [negotiable] tax
  anticipation notes or [negotiable] bond anticipation notes to
  borrow the money needed by the district without advertising or
  giving notice of the sale. A district's bond anticipation notes or
  tax anticipation notes are negotiable instruments within the
  meaning and purposes of the Business & Commerce Code
  notwithstanding any provision to the contrary in that code. Bond
  anticipation notes and tax anticipation notes shall mature within
  one year of their date.
         (c)  Bond anticipation notes may be issued for any purpose
  for which bonds of the district may be issued [have previously been
  voted] or [may be issued] for the purpose of refunding previously
  issued bond anticipation notes. A district may covenant with the
  purchasers of the bond anticipation notes that the district will
  use the proceeds of sale of any bonds in the process of issuance for
  the purpose of refunding the bond anticipation notes, in which case
  the board will be required to use the proceeds received from sale of
  the bonds in the process of issuance to pay principal, interest, or
  redemption price on the bond anticipation notes.
         SECTION 1.26.  Section 49.181(a), Water Code, is amended to
  read as follows:
         (a)  A district may not issue bonds to finance a project for
  which the commission has adopted rules requiring review and
  approval unless the commission determines that the project [to be
  financed by the bonds] is feasible and issues an order approving the
  issuance of the bonds. This section does not apply to:
               (1)  refunding bonds if the commission issued an order
  approving the issuance of the bonds or notes that originally
  financed the project;
               (2)  refunding bonds that are issued by a district
  under an agreement between the district and a municipality allowing
  the issuance of the district's bonds to refund bonds issued by the
  municipality to pay the cost of financing facilities;
               (3)  bonds issued to and approved by the Farmers Home
  Administration, the United States Department of Agriculture, the
  North American Development Bank, or the Texas Water Development
  Board; or
               (4)  refunding bonds issued to refund bonds described
  by Subdivision (3).
         SECTION 1.27.  Section 49.194, Water Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsection (h) to
  read as follows:
         (a)  Except as provided by Subsection (h), after [After] the
  board has approved the audit report, it shall submit a copy of the
  report to the executive director for filing within 135 days after
  the close of the district's fiscal year.
         (b)  Except as provided by Subsection (h), if [If] the board
  refuses to approve the annual audit report, the board shall submit a
  copy of the report to the executive director for filing within 135
  days after the close of the district's fiscal year, accompanied by a
  statement from the board explaining the reasons for its failure to
  approve the report.
         (c)  Copies of the audit report, the annual financial
  dormancy affidavit, or annual financial report described in
  Sections 49.197 and 49.198 shall be filed annually in the office of
  the district.
         (h)  A special water authority shall submit a copy of the
  audit report to the executive director for filing not later than the
  160th day after the date the special water authority's fiscal year
  ends.
         SECTION 1.28.  Section 49.212, Water Code, is amended by
  amending Subsection (d) and adding Subsections (d-1) and (d-2) to
  read as follows:
         (d)  Notwithstanding any provision of law to the contrary, a
  district that charges a fee that is an impact fee as described in
  Section 395.001(4), Local Government Code, must comply with Chapter
  395, Local Government Code. A charge or fee is not an impact fee
  under that chapter if:
               (1)  the charge or fee is imposed by a district for
  construction, installation, or inspection of a tap or connection to
  district water, sanitary sewer, or drainage facilities, including
  all necessary service lines and meters, for capacity in storm water
  detention or retention facilities and related storm water
  conveyances, or for wholesale facilities that serve such water,
  sanitary sewer, [or] drainage, or storm water detention or
  retention facilities; and
               (2)  the charge or fee:
                     (A)  [that (i)] does not exceed three times the
  actual [and reasonable] costs to the district for such tap or
  connection;
                     (B)  [, (ii)] if made to a nontaxable entity for
  retail or wholesale service, does not exceed the actual costs to the
  district for such work and for all facilities that are necessary to
  provide district services to such entity and that are financed or
  are to be financed in whole or in part by tax-supported or revenue
  bonds of the district; [,] or
                     (C)  is [(iii) if] made by a district for retail or
  wholesale service on land that at the time of platting was not being
  provided with water, [or] wastewater, drainage, or storm water
  detention or retention service by the district[, shall not be
  deemed to be an impact fee under Chapter 395, Local Government
  Code].
         (d-1)  Actual costs under Subsection (d), as determined by
  the board in its reasonable discretion, may include nonconstruction
  expenses attributable to the design, permitting, financing, and
  construction of those facilities, and reasonable interest on those
  costs calculated at a rate not to exceed the net effective interest
  rate on any district bonds issued to finance the facilities.
         (d-2)  A district may pledge the revenues of the district's
  utility system to pay the principal of or interest on bonds issued
  to construct the capital improvements for which a fee is [was]
  imposed under Subsection (d) [this subsection], and money received
  from the fees shall be considered revenues of the district's
  utility system for purposes of the district's bond covenants.
         SECTION 1.29.  Section 49.2121(b), Water Code, is amended to
  read as follows:
         (b)  A district may:
               (1)  accept a credit card for the payment of any fees
  and charges imposed by the district;
               (2)  collect a fee[, not to exceed five percent of the
  amount of the fee or charge being paid,] that is reasonably related
  to the expense incurred by the district in processing the payment by
  credit card; and
               (3)  collect a service charge for the expense incurred
  by the district in collecting the original fee or charge if the
  payment by credit card is not honored by the credit card company on
  which the funds are drawn.
         SECTION 1.30.  Section 49.216, Water Code, is amended by
  amending Subsection (e) and adding Subsection (f) to read as
  follows:
         (e)  Any peace officer who is directly employed by a
  district, before beginning to perform any duties and at the time of
  appointment, must take an oath and execute a bond conditioned on
  faithful performance of such officer's duties in the amount of
  $1,000 payable to the district. The oath and the bond shall be
  filed in the district office.
         (f)  A peace officer contracted for by the district,
  individually or through a county, sheriff, constable, or
  municipality, is an independent contractor, and the district is
  responsible for the acts or omissions of the peace officer only to
  the extent provided by law for other independent contractors.
         SECTION 1.31.  Subchapter H, Chapter 49, Water Code, is
  amended by adding Section 49.239 to read as follows:
         Sec. 49.239.  WATER RATES.  (a)  In this section, "utility" 
  means a person or any combination of persons, other than a district,
  a water supply corporation that has adopted and is operating in
  accordance with bylaws or articles of incorporation that ensure
  that it is member-owned and member-controlled, or a political
  subdivision of the state, or their lessees, trustees, and
  receivers, providing potable water service to a district or to the
  residents of that district.
         (b)  Notwithstanding the provisions of any agreement, a
  district may appeal the rate it is charged by a utility for potable
  water service by filing a petition with the commission.  The
  commission shall hear the appeal de novo, and the utility bears the
  burden of proof to establish that the rate is just and reasonable
  and does not adversely affect the public interest.  The commission
  shall presume that the rate adversely affects the public interest
  if the rate the utility charges on the date the petition is filed is
  at least 200 percent higher than the rate charged at any time during
  the 36-month period before the date of the petition.  The commission
  shall set the rates to be charged by the utility, and the utility
  may not increase the rates without the approval of the commission.
         SECTION 1.32.  Sections 49.273(d) and (e), Water Code, are
  amended to read as follows:
         (d)  For contracts over $75,000 [$50,000], the board shall
  advertise the letting of the contract, including the general
  conditions, time, and place of opening of sealed bids. The notice
  must [shall] be published in one or more newspapers circulated in
  each county in which [part of] the district is located. [If one
  newspaper meets both of these requirements, publication in such
  newspaper is sufficient.] If there are more than four counties in
  the district, notice may be published in any newspaper with general
  circulation in the district. The notice must [shall] be published
  once a week for two consecutive weeks before the date that the bids
  are opened, and the first publication must [shall] be not later than
  the 14th [21st] day before the date of the opening of the sealed
  bids.
         (e)  For contracts over $25,000 but not more than $75,000
  [$50,000], the board shall solicit written competitive bids on
  uniform written specifications from at least three bidders.
         SECTION 1.33.  Section 49.351, Water Code, is amended by
  amending Subsections (a), (b), (c), (f), (i), and (l) and adding
  Subsection (m) to read as follows:
         (a)  A district providing potable water or sewer service to
  household users may, separately or jointly with another district,
  municipality, or other political subdivision, establish, operate,
  and maintain, finance with ad valorem taxes, mandatory fees, or
  voluntary contributions, and issue bonds for a fire department to
  perform all fire-fighting services within the district as provided
  in this subchapter and may provide for [issue bonds or impose a
  mandatory fee, with voter approval, for financing a plan approved
  in accordance with this section, including] the construction and
  purchase of necessary buildings, facilities, land, and equipment
  and the provision of an adequate water supply.
         (b)  After complying with the requirements of this section
  [approval of the district electors of a plan to operate, jointly
  operate, or jointly fund the operation of a fire department, and
  after complying with Subsections (g), (h), and (i)], the district
  or districts shall provide an adequate system and water supply for
  fire-fighting purposes, may purchase necessary land, may construct
  and purchase necessary buildings, facilities, and equipment, and
  may employ or contract with a fire department to employ all
  necessary personnel including supervisory personnel to operate the
  fire department.
         (c)  For [Bonds for] financing a plan approved in accordance
  with this section, bonds and ad valorem taxes must [shall] be
  authorized and may be issued or imposed[, and a district shall be
  authorized to levy a tax to pay the principal of and interest on
  such bonds,] as provided by law for the authorization and issuance
  of other bonds and the authorization and imposition of other ad
  valorem taxes of the district.
         (f)  Before a district imposes an ad valorem tax or issues
  bonds payable wholly or partly from ad valorem taxes to finance the
  establishment of [establishes] a fire department, contracts to
  operate a joint fire department, or contracts with another person
  to perform fire-fighting services within the district, the district
  must comply with [the provisions of] Subsections (g), (h), and (i).
  A district that funds fire-fighting services with revenue,
  including mandatory fees or voluntary contributions, is not
  required to comply with Subsections (g), (h), and (i).
         (i)  After approval of a plan by the commission, the district
  shall hold an [submit to the electors of the district at the]
  election to approve the plan, approve bonds payable wholly or
  partly from ad valorem taxes, and [or to] impose ad valorem taxes [a
  mandatory fee] for financing the plan. The election [, or if no
  bonds or fees are to be approved, at an election called for approval
  of the plan, which] may be held in conjunction with an election
  required by Section 49.102[, the proposition of whether or not the
  plan should be implemented or entered into by the district]. [The
  ballots at the election shall be printed, as applicable, to provide
  for voting for or against the proposition: "The implementation of
  the plan for (operation/joint operation) of a fire department"; or
  "The plan and contract to provide fire-fighting services for the
  district."]
         (l)  A [Notwithstanding the requirements of Subsections
  (a)-(j), a] district providing potable water or sewer service to
  household users may, as part of its billing process, collect from
  its customers a voluntary contribution on behalf of organizations
  providing fire-fighting services to the district. A district that
  chooses to collect a voluntary contribution under this subsection
  must give reasonable notice to its customers that the contribution
  is voluntary. Water and sewer service may not be terminated as a
  result of failure to pay the voluntary contribution.
         (m)  If a customer makes a partial payment of a district bill
  for water or sewer service and includes with the payment a voluntary
  contribution for fire-fighting services under Subsection (l), the
  district shall apply the voluntary contribution first to the bill
  for water or sewer service, including any interest or penalties
  imposed. The district shall use any amount remaining for
  fire-fighting services.
         SECTION 1.34.  Section 49.462(1), Water Code, is amended to
  read as follows:
               (1)  "Recreational facilities" means parks,
  landscaping, parkways, greenbelts, sidewalks, trails, public
  right-of-way beautification projects, and recreational equipment
  and facilities. The term includes associated street and security
  lighting. The term does not include a minor improvement or
  beautification project to land acquired or to be acquired as part of
  a district's water, sewer, or drainage facilities.
         SECTION 1.35.  Subchapter N, Chapter 49, Water Code, is
  amended by adding Section 49.4641 to read as follows:
         Sec. 49.4641.  RECREATIONAL FACILITIES ON SITES ACQUIRED FOR
  WATER, SEWER, OR DRAINAGE FACILITIES. (a)  A district may develop
  and maintain recreational facilities on a site acquired for the
  purpose of developing water, sewer, or drainage facilities.
         (b)  A district is not required to prorate the costs of a site
  described by Subsection (a) between the primary water, sewer, or
  drainage purpose and any secondary recreational facilities purpose
  if a licensed professional engineer certifies that the site is
  reasonably sized for the intended water, sewer, or drainage
  purpose.
         (c)  The engineer may consider the following factors in
  determining the reasonableness of the size of a water, sewer, or
  drainage site:
               (1)  the rules, regulations, and design guidelines or
  criteria of a municipality, county, or other entity exercising
  jurisdiction;
               (2)  sound engineering principles;
               (3)  the impact on adjoining property;
               (4)  the availability of sites that meet the
  requirements for the proposed use;
               (5)  requirements for sanitary control;
               (6)  the need for a buffer zone to mitigate noise or for
  aesthetic purposes;
               (7)  benefits to storm water quality; and
               (8)  anticipated expansions of facilities resulting
  from:
                     (A)  future growth and demand for district
  facilities; or
                     (B)  changes in regulatory requirements.
         SECTION 1.36.  Sections 49.4645(a) and (b), Water Code, are
  amended to read as follows:
         (a)  A district all or part of which is located in Bastrop
  County, Bexar County, Waller County, Travis County, Williamson
  County, Harris County, Galveston County, Brazoria County,
  Montgomery County, or Fort Bend County may issue bonds supported by
  ad valorem taxes to pay for the development and maintenance of
  recreational facilities only if the bonds are authorized by a
  majority vote of the [qualified] voters of the district voting in an
  election held for that purpose. The outstanding principal amount
  of bonds, notes, and other obligations issued to finance parks and
  recreational facilities supported by ad valorem taxes [payable from
  any source] may not exceed an amount equal to one percent of the
  value of the taxable property in the district or, if supported by
  contract taxes under Section 49.108, may not exceed an amount equal
  to one percent of the sum of the value of the taxable property in the
  districts making payments under the contract as shown by the tax
  rolls of the central appraisal district at the time of the issuance
  of the bonds, notes, and other obligations or an amount greater than
  the estimated cost provided in the park plan under Subsection (b),
  whichever is smaller. An estimate of the value provided by the
  central appraisal district may be used to establish the value of the
  taxable property in the district or districts under this section.
  The district may not issue bonds supported by ad valorem taxes to
  pay for the development and maintenance of:
               (1)  indoor or outdoor swimming pools; or
               (2)  golf courses.
         (b)  On or before the 10th day before the first day for early
  voting by personal appearance at [Not later than the 10th day
  before] an election [is] held to authorize the issuance of bonds for
  the development and maintenance of recreational facilities, the
  board shall file in the district office for review by the public a
  park plan covering the land, improvements, facilities, and
  equipment to be purchased or constructed and their estimated cost,
  together with maps, plats, drawings, and data fully showing and
  explaining the park plan. The park plan is not part of the
  proposition to be voted on, [and the park plan] does not create a
  contract with the voters, and may be amended at any time after the
  election held to authorize the issuance of bonds for the
  development and maintenance of recreational facilities provided
  under the plan. The estimated cost stated in the amended park plan
  may not exceed the amount of bonds authorized at that election.
         SECTION 1.37.  Section 51.072, Water Code, is amended to
  read as follows:
         Sec. 51.072.  QUALIFICATIONS FOR DIRECTOR. (a)  To be
  qualified for election as a director, a person must:
               (1)  be a resident of the state;
               (2)  [,] own land subject to taxation in the district or
  be a qualified voter in the district; [,] and
               (3)  be at least 18 years of age.
         (b)  Section 49.052 does not apply to a district governed by
  this chapter whose principal purpose is providing water for
  irrigation.
         SECTION 1.38.  Section 51.335, Water Code, is amended by
  amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  The district shall not usurp functions or duplicate a
  service already adequately exercised or rendered by the other
  governmental agency except:
               (1)  under a valid contract with the other governmental
  agency; or
               (2)  as provided by Subsection (c).
         (c)  The district may finance, develop, and maintain
  recreational facilities under Subchapter N, Chapter 49, even if
  similar facilities may be provided by a political subdivision or
  other governmental entity included wholly or partly in the
  district.
         SECTION 1.39.  Section 51.523, Water Code, is amended to
  read as follows:
         Sec. 51.523.  BALLOTS. The ballot for an election under this
  subchapter shall be printed to provide for voting for or against
  substantially the proposition: "Designation of the area, issuance
  of bonds, [and] levy of a tax to retire the bonds, and levy of a
  maintenance tax."
         SECTION 1.40.  Section 51.527, Water Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  After bonds issued for the defined area or designated
  property are fully paid or defeased, the board may declare the
  defined area dissolved or may repeal the designation of the
  designated property. After that declaration or repeal, the board
  shall cease imposing any special taxes authorized under the adopted
  tax plan on the property located in the defined area or on the
  designated property.
         SECTION 1.41.  Section 53.063(a), Water Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (b), to be qualified
  for election as a supervisor, a person must be:
               (1)  a resident of this state;
               (2)  the owner of taxable property in the district or a
  qualified voter in the district; and
               (3)  at least 18 years of age.
         SECTION 1.42.  Section 54.016(f), Water Code, is amended to
  read as follows:
         (f)  A city may provide in its written consent for the
  inclusion of land in a district that is initially located wholly or
  partly outside the corporate limits of the city that a contract
  ("allocation agreement") between the district and the city be
  entered into prior to the first issue of bonds, notes, warrants, or
  other obligations of the district.  The allocation agreement shall
  contain the following provisions:
               (1)  a method by which the district shall continue to
  exist following the annexation of all territory within the district
  by the city, if the district is initially located outside the
  corporate limits of the city;
               (2)  an allocation of the taxes or revenues of the
  district or the city which will assure that, following the date of
  the inclusion of all the district's territory within the corporate
  limits of the city, the total annual ad valorem taxes collected by
  the city and the district from taxable property within the district
  does not exceed an amount greater than the city's ad valorem tax
  upon such property;
               (3)  an allocation of governmental services to be
  provided by the city or the district following the date of the
  inclusion of all of the district's territory within the corporate
  limits of the city; and
               (4)  such other terms and conditions as may be deemed
  appropriate by the city.
         SECTION 1.43.  Subchapter D, Chapter 54, Water Code, is
  amended by adding Section 54.204 to read as follows:
         Sec. 54.204.  PUBLIC MEETINGS BEFORE CERTAIN WATER RATE
  INCREASES. (a) A wholesale supplier of water to a district that
  proposes to increase the rate the district pays for water must
  conduct at least two public meetings on the proposed rate increase
  in the district.
         (b)  The district may pass the increase along to the
  district's customers only after the public meetings have been held
  under Subsection (a).
         (c)  This section applies only to a proposed rate that is at
  least 200 percent higher than the rate the wholesale supplier
  charged the district at any time in the preceding 36-month period.
         SECTION 1.44.  Section 54.236, Water Code, is amended to
  read as follows:
         Sec. 54.236.  STREET OR SECURITY LIGHTING. (a)  Subject to
  the provisions of this section, a district may purchase, install,
  operate, and maintain street lighting or security lighting within
  public utility easements or public rights-of-way or property owned
  by [within the boundaries of] the district.
         (b)  A district may not issue bonds supported by ad valorem
  taxes to pay for the purchase, installation, and maintenance of
  street or security lighting, except as authorized by Section 54.234
  or Subchapter N, Chapter 49.
         SECTION 1.45.  Section 54.739, Water Code, is amended to
  read as follows:
         Sec. 54.739.  SUBSTITUTING LAND OF EQUAL VALUE. After the
  district is organized and has obtained voter approval for the
  issuance of, or has sold, bonds payable wholly or partly from ad
  valorem taxes [acquires facilities with which to function for the
  purposes for which it was organized, and votes, issues and sells
  bonds for such purposes], land within the district boundaries
  subject to taxation that does not need or utilize the services of
  the district may be excluded and other land not within the
  boundaries of the district may be included within the boundaries of
  the district without impairment of the security for payment of the
  bonds or invalidation of any prior bond election, as provided by
  this section and Sections 54.740 through 54.747.
         SECTION 1.46.  Section 54.744, Water Code, is amended to
  read as follows:
         Sec. 54.744.  IMPAIRMENT OF SECURITY. (a)  For purposes of
  the board's consideration of the applications, the lands proposed
  for inclusion shall be deemed to be sufficient to avoid an
  impairment of the security for payment of obligations of the
  district if:
               (1)  according to the most recent tax roll of the
  district or the most recently certified estimates of taxable value
  from the chief appraiser of the appropriate appraisal district, the
  taxable value of such included lands equals or exceeds the taxable
  value of the excluded lands; and
               (2)  either the estimated costs of providing district
  facilities and services to such included lands is equal to or less
  than the estimated costs of providing district facilities and
  services to the excluded lands or any increased estimated costs of
  providing district facilities and services to the included land, as
  determined by the district's engineer, can be amortized at
  prevailing bond interest rates and maturity schedules and the
  prevailing debt service tax rate of the district, as determined by
  the district's professional financial advisor, when applied to the
  increase in taxable value of the included land over the taxable
  value of the excluded land.
         (b)  If the district has any[; and (3) the district's]
  outstanding bonds or contract obligations [are] payable in whole or
  in part by a pledge of net revenues from the ownership or operation
  of the district's facilities at the time the board considers an
  application, the lands proposed for inclusion shall be deemed to be
  sufficient to avoid an impairment of the security for payment of
  obligations of the district if[, and] the projected net revenues to
  be derived from the lands to be included during the succeeding
  12-month period, as determined by the district's engineer, equals
  or exceeds the projected net revenues that would otherwise have
  been derived from the lands to be excluded during the same period.
         (c)  In this section, the taxable value of included land
  means the market value of the land if, before or contemporaneously
  with the inclusion of the land in the district, the owner of the
  land waives the right to special appraisal of the land as to the
  district under Section 23.20, Tax Code.
         SECTION 1.47.  Section 49.103(g), Water Code, is repealed.
         SECTION 1.48.  (a) Section 36.1071, Water Code, as amended
  by this article, applies only to the rulemaking authority of a
  groundwater conservation district related to a management plan or
  an amendment to a management plan that is submitted by the district
  to the executive administrator of the Texas Water Development Board
  for review and approval on or after the effective date of this
  article.  A district's rulemaking authority related to a management
  plan or an amendment to a management plan that is submitted to the
  executive administrator of the Texas Water Development Board before
  the effective date of this article is governed by the law in effect
  when the management plan or amendment was submitted, and the former
  law is continued in effect for that purpose.
         (b)  The change in law made by this article to Section
  36.301, Water Code, applies only to a violation by a groundwater
  conservation district that occurs on or after the effective date of
  this article.  A violation that occurs before the effective date of
  this article is governed by the law in effect on the date the
  violation occurred, and the former law is continued in effect for
  that purpose.
         SECTION 1.49.  The legislature finds that an agreement
  entered into before September 1, 2011, by a municipality and a
  municipal utility district is an allocation agreement only if:
               (1)  the district is initially located wholly or partly
  outside the corporate limits of the municipality;
               (2)  the agreement strictly complies with the
  requirements of Section 54.016(f), Water Code, as that section
  existed immediately before the effective date of this article; and
               (3)  the agreement is specifically designated by the
  parties to the agreement as an "allocation agreement" under Section
  54.016(f), Water Code.
         SECTION 1.50.  Not later than December 1, 2011, the Texas
  Commission on Environmental Quality shall adopt any rules or
  amendments to existing rules necessary to implement Section
  49.4641, Water Code, as added by this article.
         SECTION 1.51.  (a)  Except as provided by Subsection (b) of
  this section, this article takes effect September 1, 2011.
         (b)  Sections 54.739 and 54.744, Water Code, as amended by
  this article, take effect immediately if this Act receives a vote of
  two-thirds of all the members elected to each house, as provided by
  Section 39, Article III, Texas Constitution; otherwise, those
  sections take effect September 1, 2011.
  ARTICLE 2.  BELL COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
         SECTION 2.01.  Subtitle F, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 8372 to read as follows:
  CHAPTER 8372.  BELL COUNTY MUNICIPAL UTILITY DISTRICT NO. 1
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8372.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Director" means a board member.
               (4)  "District" means the Bell County Municipal Utility
  District No. 1.
         Sec. 8372.002.  NATURE OF DISTRICT.  The district is a
  municipal utility district created under Section 59, Article XVI,
  Texas Constitution.
         Sec. 8372.003.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 8372.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 8372.003
  until each municipality in whose corporate limits or
  extraterritorial jurisdiction the district is located has
  consented by ordinance or resolution to the creation of the
  district and to the inclusion of land in the district.
         Sec. 8372.005.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)  
  The district is created to serve a public purpose and benefit.
         (b)  The district is created to accomplish the purposes of:
               (1)  a municipal utility district as provided by
  general law and Section 59, Article XVI, Texas Constitution; and
               (2)  Section 52, Article III, Texas Constitution, that
  relate to the construction, acquisition, or improvement of
  macadamized, graveled, or paved roads described by Section 54.234,
  Water Code, or improvements, including storm drainage, in aid of
  those roads.
         Sec. 8372.006.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 2.02 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2.02
  of the Act enacting this chapter form a closure.  A mistake made in
  the field notes or in copying the field notes in the legislative
  process does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  [Sections 8372.007-8372.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8372.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five elected directors.
         (b)  Except as provided by Section 8372.052, directors serve
  staggered four-year terms.
         Sec. 8372.052.  TEMPORARY DIRECTORS.  (a)  The temporary
  board consists of:
               (1)  Roger Hunter;
               (2)  Randy Reding;
               (3)  David Barr;
               (4)  Karen Walinder; and
               (5)  David Lazar.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 8372.003; or
               (2)  September 1, 2015.
         (c)  If permanent directors have not been elected under
  Section 8372.003 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 8372.003; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
  [Sections 8372.053-8372.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8372.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 8372.102.  MUNICIPAL UTILITY DISTRICT POWERS AND
  DUTIES.  The district has the powers and duties provided by the
  general law of this state, including Chapters 49 and 54, Water Code,
  applicable to municipal utility districts created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 8372.103.  AUTHORITY FOR ROAD PROJECTS. (a)  Under
  Section 52, Article III, Texas Constitution, the district may
  design, acquire, construct, finance, issue bonds for, improve, and
  convey to this state, a county, or a municipality for operation and
  maintenance macadamized, graveled, or paved roads described by
  Section 54.234, Water Code, or improvements, including storm
  drainage, in aid of those roads.
         (b)  The district may exercise the powers provided by this
  section without submitting a petition to or obtaining approval from
  the commission as required by Section 54.234, Water Code.
         Sec. 8372.104.  APPROVAL OF ROAD PROJECT.  (a)  The district
  may not undertake a road project authorized by Section 8372.103
  unless:
               (1)  each municipality or county that will operate and
  maintain the road has approved the plans and specifications of the
  road project, if a municipality or county will operate and maintain
  the road; or
               (2)  the Texas Transportation Commission has approved
  the plans and specifications of the road project, if the state will
  operate and maintain the road.
         (b)  Except as provided by Subsection (a), the district is
  not required to obtain approval from the Texas Transportation
  Commission to design, acquire, construct, finance, issue bonds for,
  improve, or convey a road project.
         Sec. 8372.105.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
  OR RESOLUTION.  The district shall comply with all applicable
  requirements of any ordinance or resolution that is adopted under
  Section 54.016 or 54.0165, Water Code, and that consents to the
  creation of the district or to the inclusion of land in the
  district.
         Sec. 8372.106. LIMITATION ON USE OF EMINENT DOMAIN. The
  district may not exercise the power of eminent domain outside the
  district to acquire a site or easement for:
               (1)  a road project authorized by Section 8372.103; or
               (2)  a recreational facility as defined by Section
  49.462, Water Code.
  [Sections 8372.107-8372.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8372.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district may issue, without an election, bonds and other
  obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 8372.153.
         (b)  The district must hold an election in the manner
  provided by Chapters 49 and 54, Water Code, to obtain voter approval
  before the district may impose an ad valorem tax or issue bonds
  payable from ad valorem taxes.
         (c)  The district may not issue bonds payable from ad valorem
  taxes to finance a road project unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election held for that purpose.
         Sec. 8372.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 8372.151, the district
  may impose an operation and maintenance tax on taxable property in
  the district in accordance with Section 49.107, Water Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 8372.153.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
  [Sections 8372.154-8372.200 reserved for expansion]
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 8372.201.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS.  The district may issue bonds or other obligations
  payable wholly or partly from ad valorem taxes, impact fees,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for any authorized district
  purpose.
         Sec. 8372.202.  TAXES FOR BONDS.  At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct ad valorem tax, without limit as to rate or amount, while all
  or part of the bonds are outstanding as required and in the manner
  provided by Sections 54.601 and 54.602, Water Code.
         Sec. 8372.203.  BONDS FOR ROAD PROJECTS. At the time of
  issuance, the total principal amount of bonds or other obligations
  issued or incurred to finance road projects and payable from ad
  valorem taxes may not exceed one-fourth of the assessed value of the
  real property in the district.
         SECTION 2.02.  The Bell County Municipal Utility District
  No. 1 initially includes all the territory contained in the
  following area:
  Being all that certain tract or parcel of land situated in the C. H.
  Fitch Survey, A-316, the John Lewis Survey, A-512, the S.C. Fitch
  Survey, A-371, and the Young Williams Survey, A-861, Bell County,
  Texas, being all of Tract One (called 442.51 acres), Tract Two
  (called 23.923 acres), and Tract 4 (called 8.440 acres) described
  in deed to Weldon Whitis and Bruce Whitis in Volume 4441, Page 575,
  Official Records, Bell County, Texas, and all of that certain
  called 64.7 acre tract described in deed to Whitis Land
  Investments, Ltd., in Volume 6622, Page 114, Official Records, Bell
  County, Texas, and being more particularly described by metes and
  bounds as follows:
  BEGINNING at an iron rod at the southeast corner of said Tract 4
  (called 8.440 acres), same being in the north line of said Tract One
  (called 442.51 acres), also being the southwest corner of Tract
  Three (called 6.747 acres) also described in deed to Weldon Whitis
  and Bruce Whitis in Volume 4441, Page 575, Official Records, Bell
  County, Texas, for corner of the herein described tract,
  THENCE N 17°42'07" E, 444.85 along the west line of said Tract Three
  and east line of said Tract Two to an iron pipe for corner of the
  herein described tract;
  THENCE in a westerly direction along the north line of said Tract
  Three with the following courses:
  1.  N 88°11'16" W, 310.38 feet to an iron pipe;
  2.  S 83°11'40" W, 317.12 feet, to an iron pipe;
  3.  S 82°58'31" W, 246.70, feet to an iron pipe, for the northwest
  corner of said Tract Three;
  THENCE in a southerly direction along the west line of said Tract
  Three with the following courses:
  1.  S 10°13'31" W, 26.66 feet;
  2.  S 29°13'59" E, 10.60 feet;
  3.  S 01°30'59" E 14.54 feet;
  4.  S 43°00'42" W, 24.35 feet;
  5.  S 61°37'21" W, 12.89 feet;
  6.  S 14°33'54" W, 88.90 feet, to an iron pipe in a fence corner, for
  an ell corner;
  THENCE N 71°44'38" W, 190.17 feet, westerly, along a north line of
  said Tract Three to an iron rod in the north line of said Tract One;
  THENCE in a westerly direction along the north line of said Tract
  One with the following courses:
  1.  N 70°34'14" W, 44.59 feet, an iron rod for corner;
  2.  N 72°25'22" W, 616.92 feet, an iron rod for corner;
  3.  N 74°43'06" W, 507.39 feet, an iron rod in the east line of said
  64.7 acre tract, for corner;
  THENCE N 15°55'53" E, 851.78 feet, westerly, along an east line of
  said 64.7 acre tract to a cedar, for the northeast corner of said
  64.7 acre tract;
  THENCE in a westerly direction a the north line of said 64.7 acre
  tract with the following courses:
  1.  N 48°17'37" W, 82.11 feet, a post for corner;
  2.  N 28°55'27" W, 225.01 feet, a post for corner;
  3.  N 58°18'37" W, 18.24 feet, an elm for corner;
  4.  N 75°42'40" W, 266.08 feet, an iron rod for corner;
  5.  N 75°23'12" W, 237.82 feet, an iron rod for corner;
  6.  N 73°19'20" W, 164.19 feet, an iron rod for the northeast corner
  of Lot 5, Block 6, Stoneoak Subdivision, Phase 2, recorded in
  Cabinet B, Slide 334-B, Plat Records, Bell County, Texas, for
  corner of the herein described tract;
  THENCE along the easterly and southerly boundaries of Block 6,
  Stoneoak Subdivision, Phase 2 with the following courses:
  1.  S 14°37'25" W, 427.85 feet, an iron rod for corner;
  2.  S 39°36'49" W, 477.27 feet, an iron rod for corner;
  3.  N 50°23'11" W, 139.40 feet, an iron rod in the north margin of
  Stoneoak Dr., for corner;
  THENCE S 39°36'49" W, 60.00 feet, to an iron rod in the south margin
  of Stoneoak Dr, for corner;
  THENCE N 50°23'59" W, 99.90 feet, along the south margin of Stoneoak
  Dr., to an iron rod for the northeast corner of Block 3, Stoneoak
  Subdivision, Phase 2, for corner;
  THENCE along the easterly and southerly boundaries of Block 3,
  Stoneoak Subdivision, Phase 2 with the following courses:
  1.  S 39°39'11" W, 139.38 feet, an iron rod for the northeast corner
  of Lot 5, Block 3, Stoneoak Subdivision, Phase 2, for corner;
  2.  N 50°23'11" W, 311.48 feet, an iron rod, for corner;
  3.  N 53°09'02" W, 458.34 feet, an iron rod for the southwest corner
  of Lot 1, Block 3, Stoneoak Subdivision, Phase 2, same being the
  southeast corner of Lot 1, Block 1, Stoneoak Subdivision, Phase 1,
  recorded in Cabinet B, Slide 236-B, Plat Records, Bell County,
  Texas, for corner;
  THENCE N 53°50'25" W, 155.91 feet, along the south line of said Lot
  1, Block 1, to an iron rod in the east margin of FM 1670, for corner;
  THENCE S 27°04'56" W, 566.14 feet, along the east margin of FM 1670
  for an iron rod in the north line of Lot 6, Block 1, Stoneoak
  Subdivision, Phase 1, for corner;
  THENCE along the easterly and southerly boundaries of Lot Lot 6,
  Block 1, Stoneoak Subdivision, Phase 1, with the following courses:
  1.  S 53°56'27" E, 155.87 feet, an iron rod for corner;
  2.  S 27°04'53" W, 145.23 feet, an iron rod for the southeast corner
  of said Lot 6, Block 1, Stoneoak Subdivision, Phase 1, and corner of
  the herein described tract;
  THENCE along the southeasterly along the southerly boundary of said
  64.7 acre tract with the following courses:
  1.  S 56°19'35" E, 696.11 feet, an iron rod, for corner;
  2.  N 23°01'40" E, 18.36 feet, an iron rod, for corner;
  3.  S 47°22'19" E, 1346.71 feet, an iron rod, in the west line of
  said Tract One and an ell corner of the herein described tract;
  THENCE in a southerly direction along the fenced west line of said
  Tract One with the following courses:
  1.  S 45°43'29" W, 521.79 feet, an iron rod, for corner;
  2.  S 28°59'19" W, 430.76 feet, an iron rod, for corner;
  3.  S 15°02'24" W, 590.71 feet, a 12" cedar, for corner;
  4.  S 31°13'21" W, 11.21 feet, a 12" cedar, for corner;
  5.  S 28°24'41" W, 2.53 feet, an iron rod for the north corner of the
  called 8.12 acre tract described in deed to the United States of
  America in Volume 874, Page 283, Deed Records of Bell County, Texas;
  THENCE S 19°42'32" E, 1187.26 feet, along a east line of said 8.12
  acre tract and west line of said Tract One to an iron pipe for the
  south corner of said 8.12 acre tract, for corner;
  THENCE S 15°55'45" W, 377.40 feet, along a north west line of said
  Tract One to an iron pipe for the westerly southwest corner of the
  herein described tract;
  THENCE S 78°41'13" E, 2847.43 feet, along a south line of said Tract
  One and existing fence to an iron pipe in a fence corner, same being
  an ell corner of the herein described tract;
  THENCE S 12°34'41" W, 95.71 feet, to a point, for corner;
  THENCE in a easterly direction 100' north of an parallel to the
  south line of said Tract One, south line of said Tract Two, and left
  bank of the Lampasas River with the following courses:
  1.  N 59°59'13" E, 125.67 feet, a point, for corner;
  2.  N 78°13'20" E, 288.55 feet, a point, for corner;
  3.  S 69°41'17" E, 72.82 feet, a point, for corner;
  4.  S 67°06'56" E, 275.14 feet, a point, for corner;
  5.  S 58°22'11" E, 271.35 feet, a point, for corner
  6.  S 46°50'39" E, 512.57 feet, a point, for corner;
  7.  S 26°54'16" E, 299.38 feet, a point, for corner;
  8.  S 43°48'14" E, 309.26 feet, a point, for the southeast corner of
  the herein described tract;
  THENCE in a northerly direction along the fenced east line of said
  Tract Two, and east line of the herein described tract, with the
  following courses:
  1.  N 14°02'58" E, 481.07 feet, a post, for corner;
  2.  N 02°07'12" W, 180.92 feet, a post, for corner;
  3.  N 10°32'57" E, 614.21 feet, a post, for corner;
  4.  N 49°54'32" E, 229.03 feet, a fence corner post for the
  northeast corner of said Tract Two;
  THENCE in a westerly direction along a fenced north line of said
  Tract Two, and east line of the herein described tract, with the
  following courses:
  1.  N 72°21'30" W, 39.54 feet, an iron rod, for corner;
  2.  N 64°20'47" W, 70.85 feet, an iron rod in a fence corner in the
  east line of said Tract One, for corner of the herein described
  tract;
  THENCE in a northerly direction along the fenced east line of said
  Tract One, and east line of the herein described tract, with the
  following courses:
  1.  N 53°59'40" E, 167.20 feet, an iron rod, for corner;
  2.  N 59°20'36" E, 58.19 feet, an iron rod, for corner;
  3.  N 62°55'16" E, 71.72 feet, an iron rod, for corner;
  4.  N 69°11'44" E, 68.89 feet, a an iron rod, for corner;
  5.  N 62°45'31" E, 112.05 feet, an iron rod, for corner;
  6.  N 73°56'23" E, 35.96 feet, an iron rod, for corner;
  7.  N 61°52'10" E, 86.51 feet, an iron rod, for corner;
  8.  N 51°31'36" E, 274.08 feet, an iron rod, for corner;
  9.  N 45°30'37" E, 58.94 feet, an iron rod, for corner;
  10.  N 35°22'34" E, 111.93 feet, an iron rod, for corner;
  11.  N 24°37'26" E, 55.46 feet, an iron rod, for corner;
  12.  N 02°52'20" E, 61.55 feet, an iron rod, for corner;
  13.  N 05°33'08" W, 125.86 feet, an iron rod, for corner;
  14.  N 42°54'00" W, 25.42 feet, an iron rod, for corner;
  15.  N 83°42'20" W, 111.89 feet, a post, for corner;
  16.  N 79°38'56" W, 59.70 feet, an iron rod, for corner;
  17.  N 12°35'12" E, 319.71 feet, a 14" cedar, for corner;
  18.  N 03°59'50" E, 60.17 feet, an iron rod, for corner;
  19.  N 00°04'49" E, 10.78 feet, an iron rod, for corner;
  20.  N 24°58'14" E, 56.12 feet, an iron rod, for corner;
  21.  N 12°05'54" E, 554.94 feet, an iron rod, for corner;
  22.  N 14°09'42" W, 13.29 feet, an iron rod, for corner;
  23.  N 54°33'04" W, 43.94 feet, an iron rod, for corner;
  24.  N 67°13'03" W, 67.22 feet, an iron rod, for corner;
  25.  N 15°57'36" E, 766.87 feet, an iron rod in a fence corner, same
  being the most easterly northeast corner of said Tract One, for
  corner of the herein described tract;
  THENCE N 76°03'02" W, 608.28 feet, along the fenced north line of
  said Tract One to an iron rod in a fence corner for an ell corner of
  the herein described tract;
  THENCE N 16°06'35" E, 385.98 feet, along a fenced east line of said
  Tract One to an iron pipe in a fence corner for corner;
  THENCE N 74°31'12" W, 801.90 feet, along a fenced north line of said
  Tract One to an iron pipe in a fence corner for corner;
  THENCE S 16°27'16" W, 399.55 feet, along a fenced line of said Tract
  One to an iron pipe in a fence corner for corner;
  THENCE N 71°41'44" W, 1155.49 feet, along a fenced north line of said
  Tract One to an iron rod for the southeast corner of said Tract
  Three (called 6.747 acres), for corner;
  THENCE N 71°42'51" W, 62.25 feet along the south line of said Tract
  Three and north line of said Tract One to the PLACE OF BEGINNING and
  containing a called mathematical total of 534.66 acres of land,
  more or less.
         SECTION 2.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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.
         (b)  The governor, one of the required recipients, has
  submitted the notice and article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article with the governor, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  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 article are
  fulfilled and accomplished.
         SECTION 2.04.  (a)  Section 8372.106, Special District Local
  Laws Code, as added by Section 2.01 of this article, takes effect
  only if this Act receives a two-thirds vote of all the members
  elected to each house.
         (b)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 8372, Special
  District Local Laws Code, as added by Section 2.01 of this article,
  is amended by adding Section 8372.106 to read as follows:
         Sec. 8372.106.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (c)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         SECTION 2.05.  Except as provided by Section 2.04 of this
  article, this article takes effect September 1, 2011.
  ARTICLE 3.  MIDLAND COUNTY UTILITY DISTRICT
         SECTION 3.01.  Subtitle I, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 9016 to read as follows:
  CHAPTER 9016.  MIDLAND COUNTY UTILITY DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 9016.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "County" means Midland County.
               (4)  "Director" means a board member.
               (5)  "District" means the Midland County Utility
  District.
               (6)  "Municipality" means a municipality in whose
  corporate limits or extraterritorial jurisdiction any part of the
  district is located.
         Sec. 9016.002.  NATURE OF DISTRICT.  The district is a water
  control and improvement district created under Section 59, Article
  XVI, Texas Constitution.
         Sec. 9016.003.  CONFIRMATION AND DIRECTORS' ELECTION
  REQUIRED.  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         Sec. 9016.004.  CONSENT OF MUNICIPALITY REQUIRED. The
  temporary directors may not hold an election under Section 9016.003
  until each municipality has consented by ordinance or resolution to
  the creation of the district and to the inclusion of land in the
  district.
         Sec. 9016.005.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)  
  The district is created to serve a public purpose and benefit.
         (b)  The district is created to accomplish the purposes of a
  water control and improvement district as provided by general law
  and Section 59, Article XVI, Texas Constitution.
         Sec. 9016.006.  INITIAL DISTRICT TERRITORY.  (a)  The
  district is initially composed of the territory described by
  Section 3.02 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 3.02
  of the Act enacting this chapter form a closure.  A mistake made in
  the field notes or in copying the field notes in the legislative
  process does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose a tax; or
               (4)  legality or operation.
  [Sections 9016.007-9016.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 9016.051.  GOVERNING BODY; TERMS.  (a)  Except as
  provided by Subsection (c), the district is governed by a board of
  five elected directors.
         (b)  Except as provided by Section 9016.052, directors serve
  staggered four-year terms.
         (c)  If the municipality annexes any part of the territory of
  the district, the municipality shall appoint one ex officio member
  to the board to serve as a sixth director.
         Sec. 9016.052.  TEMPORARY DIRECTORS.  (a)  The temporary
  board consists of:
               (1)  Shelton Viney;
               (2)  Susie Hitchcock-Hall;
               (3)  Alan Lang;
               (4)  David Orr; and
               (5)  Israel Rodriguez.
         (b)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Section 9016.003; or
               (2)  September 1, 2015.
         (c)  If permanent directors have not been elected under
  Section 9016.003 and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (d) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Section 9016.003; or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (d)  If Subsection (c) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the commission requesting that the
  commission appoint as successor temporary directors the five
  persons named in the petition.  The commission shall appoint as
  successor temporary directors the five persons named in the
  petition.
         Sec. 9016.053.  NOTICE OF MEETINGS.  The district shall
  provide the municipality with written notice before a meeting of
  the board.
  [Sections 9016.054-9016.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 9016.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 9016.102.  WATER CONTROL AND IMPROVEMENT DISTRICT
  POWERS AND DUTIES.  The district has the powers and duties provided
  by the general law of this state, including Chapters 49 and 51,
  Water Code, applicable to water control and improvement districts
  created under Section 59, Article XVI, Texas Constitution.
         Sec. 9016.103.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
  OR RESOLUTION.  The district shall comply with all applicable
  requirements of any ordinance or resolution that is adopted under
  Section 42.042, Local Government Code, and Section 9016.004 and
  that consents to the creation of the district or to the inclusion of
  land in the district.
         Sec. 9016.104.  COMPLIANCE WITH MUNICIPAL REGULATIONS. (a)  
  Any water, sanitary sewer, drainage, or other infrastructure or
  public facilities constructed, acquired, improved, maintained, or
  operated by the district shall comply with any applicable
  regulations of the municipality in whose corporate limits or
  extraterritorial jurisdiction the infrastructure or facilities are
  located.
         (b)  Any water system constructed, acquired, improved,
  maintained, or operated by the district shall:
               (1)  comply with any applicable regulations of the
  municipality regarding specifications for rural density; and
               (2)  contain distribution lines that are:
                     (A)  four inches or more in diameter; and
                     (B)  sufficient to provide fire hydrant service
  according to the municipality's specifications for rural density.
         Sec. 9016.105.  COUNTY RIGHT-OF-WAY. The district must
  obtain the approval of the county's governing body of the plans and
  specifications of any facilities to be installed on property
  located in a county right-of-way.
         Sec. 9016.106.  LIABILITY. (a)  Neither the county nor the
  municipality is liable for any claims arising from the operation of
  the district's water system or other actions or inactions of the
  district, including labor, safety, or signage, or contamination or
  other environmental issues.
         (b)  Any action taken by the municipality is a governmental
  function.
         Sec. 9016.107.  COSTS OF LINE RELOCATION. (a)  The district
  is solely responsible for the expense associated with the
  relocation of any district water line required by:
               (1)  the county or a municipality; or
               (2)  a state or federal highway authority, including
  the Texas Department of Transportation and the Federal Highway
  Administration.
         (b)  The district will not unreasonably delay any requested
  line relocation.
         Sec. 9016.108.  SERVICES TO BE PROVIDED BY THE DISTRICT,
  COUNTY, OR MUNICIPALITY. (a)  The district may enter into an
  interlocal contract with the county or municipality to provide
  governmental functions, including fire protection, trash
  collection and disposal, and ambulance service.
         (b)  Notwithstanding Subsection (a), the municipality is
  authorized to provide sewer and drainage service in the district.
  The municipality shall establish the amount of the fees to be
  charged to recipients of sewer and drainage service under this
  subsection.
         (c)  Notwithstanding Subsection (a), the district may not
  provide any services within the territorial limits of the
  municipality as those limits exist on September 1, 2011.
         Sec. 9016.109.  ANNEXATION BY MUNICIPALITY. (a)  The
  municipality may annex a part of the territory of the district
  without annexing the entire territory of the district.
         (b)  If the municipality annexes all or part of the district:
               (1)  the annexed territory is not removed from the
  district; and
               (2)  the district is not:
                     (A)  dissolved; or
                     (B)  prevented from providing district services
  to the annexed territory.
         (c)  If any territory inside the district is annexed, the
  owner of the property shall pay the same rate of ad valorem tax to
  the municipality as other residents of the municipality.
         (d)  By annexing territory in the district, the municipality
  does not assume any debt of the district.
         (e)  The district may not contest an annexation by the
  municipality.
         Sec. 9016.110.  WATER SERVICE DEADLINE. The district must
  begin operation of a water system serving at least a part of the
  district not later than the sixth anniversary of the date that
  district voters approve the issuance of bonds to provide for the
  development of the water system.
         Sec. 9016.111.  LIMITATION ON USE OF EMINENT DOMAIN. The
  district may not exercise the power of eminent domain:
               (1)  outside the district to acquire a site or easement
  for a recreational facility as defined by Section 49.462, Water
  Code;
               (2)  in the corporate limits of the municipality as
  those limits exist on September 1, 2011; or
               (3)  outside the county.
         Sec. 9016.112.  PROHIBITION ON DIVISION OF DISTRICT.  The
  district may not divide into two or more districts.
  [Sections 9016.113-9016.150 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 9016.151.  ELECTIONS REGARDING TAXES OR BONDS. (a) The
  district may issue, without an election, bonds and other
  obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 9016.153.
         (b)  The district must hold an election in the manner
  provided by Chapters 49 and 51, Water Code, to obtain voter approval
  before the district may impose an ad valorem tax or issue bonds
  payable from ad valorem taxes.
         (c)  The district may not issue bonds payable from ad valorem
  taxes to finance a road project unless the issuance is approved by a
  vote of a two-thirds majority of the district voters voting at an
  election held for that purpose.
         Sec. 9016.152.  OPERATION AND MAINTENANCE TAX.  (a)  If
  authorized at an election held under Section 9016.151, the district
  may impose an operation and maintenance tax on taxable property in
  the district in accordance with Section 49.107, Water Code.
         (b)  The board shall determine the tax rate.  The rate may not
  exceed the rate approved at the election.
         Sec. 9016.153.  CONTRACT TAXES.  (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
  [Sections 9016.154-9016.200 reserved for expansion]
  SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS
         Sec. 9016.201.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS.  The district may issue bonds or other obligations
  payable wholly or partly from ad valorem taxes, impact fees,
  revenue, contract payments, grants, or other district money, or any
  combination of those sources, to pay for any authorized district
  purpose.
         Sec. 9016.202.  TAXES FOR BONDS. At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct ad valorem tax, without limit as to rate or amount, while all
  or part of the bonds are outstanding as required and in the manner
  provided by Section 51.433, Water Code.
         Sec. 9016.203.  LIMITATION ON TAX RATE. Notwithstanding any
  other provision of this chapter, the projected combined operation,
  maintenance, and debt service tax rates as of the date of the
  issuance of any bonds, as described by the commission in a
  commission order approving the issuance of the bonds, may not
  exceed 65 cents for each $100 of assessed valuation of property in
  the district.
         Sec. 9016.204.  BONDS AND OTHER OBLIGATIONS NOT TO BE PAID BY
  MUNICIPALITY OR COUNTY. Bonds or other obligations of the
  district:
               (1)  may not be paid wholly or partly by taxes imposed
  by the county or the municipality;
               (2)  are not debts of the county or municipality; and
               (3)  do not give rise to a claim against the county or
  municipality.
         SECTION 3.02.  The Midland County Utility District initially
  includes all the territory contained in the following area:
  54,050 Acres of Land
  Located in Various Sections and Blocks,
  T&P RR Co. Survey, Midland County, Texas.
  Boundary Being More Fully Described By Metes and Bounds As Follows:
  BEGINNING at (Y= 10,677,038' and X= 1,736,917') a point in the west
  line of Section 7, Block 39, T2S and a southerly line of Midland
  city limits and being the most westerly northwest corner of this
  tract;
  THENCE S 14°19' E, a distance of 2685 feet to the southwest corner of
  said Section 7 and being an ell corner of this tract;
  THENCE N 75°10' E with the south right-of-way line of West County
  Road 120, a distance of 7031 feet to a point in the north line of
  Section 17 this block for a point of deflection of this tract;
  THENCE S 64°46' E, a distance of 4725 feet to a point in the east line
  of said Section 17 and in the west right-of-way line of South County
  Road 1210 also being a point of deflection of this tract;
  THENCE S 14°23' E with the west right-of-way line of said South
  County Road 1210, a distance of 6340 feet to a point in the north
  right-of-way line of West County Road 138 and being an ell corner of
  this tract;
  THENCE S 75°41' W with the north right-of-way line of said West
  County Road 138, a distance of 3340 feet to a point in the west
  right-of-way line of South County Road 1216 and being an ell corner
  of this tract;
  THENCE S 14°52' E with the west right-of-way line of said South
  County Road 1216, a distance of 1272 feet to a point in the north
  right-of-way line of West County Road 140 and being an ell corner of
  this tract;
  THENCE S 75°29' W with the north right-of-way line of said West
  County Road 140, a distance of 1974 feet to a point near the
  northwest corner of Section 29, Block 39, T2S and being an ell
  corner of this tract;
  THENCE S 14°16' E, a distance of 26,411 feet to a point near the
  southwest corner of Section 6, Block 39, T3S and being the most
  southerly southwest corner of this tract;
  THENCE N 75°59' E, a distance of 15,901 feet to a point in the east
  right-of-way line of State Highway 349 and being the most southerly
  southeast corner of this tract;
  THENCE N 14°08' W with the east right-of-way line of said State
  Highway 349, a distance of 18,548 feet to a point near the southwest
  corner of Condor Aviation Co. Inc. tract and being an ell corner of
  this tract;
  THENCE N 75°17' E, a distance of 5227 feet to a point in the east line
  of Section 35, Block 39, T2S and being an ell corner of this tract;
  THENCE N 14°23' W, a distance of 1604 feet to a point for an ell
  corner of this tract;
  THENCE N 76°20' E, a distance of 5414 feet to a point in the east
  right-of-way line of Farm to Market Road 715 and being an ell corner
  of this tract;
  THENCE N 14°21' W with the east right-of-way line of said Farm to
  Market Road 715, a distance of 664 feet to a point for an ell corner
  of this tract;
  THENCE N 75°23' E, a distance of 2628 feet to a point in the west half
  of Section 24, Block 38, T2S and being an ell corner of this tract;
  THENCE S 14°03' E, a distance of 8251 feet to a point for an ell
  corner of this tract;
  THENCE N 76°09' E, a distance of 2658 feet to a point in the east
  right-of-way line of South County Road 1160 and being an ell corner
  of this tract;
  N 14°22' W with the east right-of-way line of said South County Road
  1160, a distance of 3359 feet to a point in the south right-of-way
  line of East County Road 160 and being an ell corner of this tract;
  THENCE N 75°38' E with the south right-of-way line of said East
  County Road 160, a distance of 10,581 feet to a point near the
  southeast corner of Section 22, Block 38, T2S and being an ell
  corner of this tract;
  THENCE N 14°07' W with the east line of said Section 22, a distance
  of 5353 feet to a point near the northeast corner of said Section 22
  and being an ell corner of this tract;
  THENCE N 75°40' E, a distance of 1381 feet to a point near the
  southeast corner of George V. Anderson Jr. tract and the southwest
  corner of Donna Johnson tract also being an ell corner of this
  tract;
  THENCE N 14°03' W with the west line of said Donna Johnson tract and
  the east line of said George V. Anderson Jr. tract, a distance of
  1926 feet to a point near the northwest corner of said Donna Johnson
  tract and being an ell corner of this tract;
  THENCE N 75°43' E, a distance of 1355 feet to a point in the east
  right-of-way line of South County Road 1136 and being an ell corner
  this tract;
  THENCE N 13°52' W with the east right-of-way line of said South
  County Road 1136, a distance of 8663 feet to a point in the
  southwesterly right-of-way of State Highway 158 and the south
  right-of-way line of East County Road 130 also being an ell corner
  of this tract;
  THENCE N 75°27' E with the south right-of-way line of said East
  County Road 130, a distance of 3996 feet to a point for an ell corner
  of this tract;
  THENCE N 13°57' W, a distance of 5272 feet to a point in the south
  right-of-way line of East County Road 120 and being an ell corner of
  this tract;
  THENCE N 75°41' E with the south right-of-way line of said East
  County road 120, a distance of 14,750 feet to a point for an ell
  corner of this tract;
  THENCE N 14°17' W, a distance of 5276 feet to a point near the
  northwest corner of Section 51, Block 37, T2S and being an ell
  corner of this tract;
  THENCE N 74°54' E, a distance of 10,567 feet to a point in the east
  right-of-way line of Farm to Market Road 1379 and being the most
  easterly southeast corner of this tract;
  THENCE N 13°59' W with the east right-of-way line of said Farm to
  Market Road 1379, a distance of 3955 feet to a point of deflection
  of this tract;
  THENCE N 14°17' W, a distance of 20,565 feet to a point in the
  southeasterly right-of-way of Interstate Highway 20 and being the
  most easterly northeast corner of this tract;
  THENCE S 59°40' W with the southeasterly right-of-way of said
  Interstate Highway 20, a distance of 22,345 feet to a point in the
  projection of North County Road 1120 and being a point of deflection
  of this tract;
  THENCE N 14°09' W, a distance of 8118 feet to a point near the
  northeast Section 26, Block 38, T1S and being an ell corner of this
  tract;
  THENCE S 75°33' W with the north line of said Section 26, a distance
  of 2741 feet to a point for an ell corner of this tract;
  THENCE N 13°46' W, a distance of 3300 feet to a point for an ell
  corner of this tract;
  THENCE S 75°45' W, a distance of 2696 feet to a point in the west line
  of Section 23 and the east line of Section 22, Block 38, T1S and
  being an ell corner of this tract;
  THENCE S 14°37' E with the west line of said Section 23 and the east
  line of said Section 22, a distance of 668 feet to a point for an ell
  corner of this tract;
  THENCE S 75°34' W, a distance of 7949 feet to a point near the middle
  of Section 21, Block 38, T1S and being an ell corner of this tract;
  THENCE N 14°18' W, a distance of 2716 feet to a point in the north
  line of said Section 21 and being an ell corner of this tract;
  THENCE S 75°23' W, a distance of 4294 feet to a point in the north
  line of Section 20, Block 38, TIS and being a point of deflection of
  this tract;
  THENCE S 66°10' W, a distance of 3034 feet to a point in an easterly
  line of the Midland city limits and being the most northerly
  northwest corner of this tract;
  THENCE S 14°33' E with said city limits, a distance of 5372 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°36' W with said city limits, a distance of 2511 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°34' E with said city limits, a distance of 180 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°36' W with said city limits, a distance of 835 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°34' E with said city limits, a distance of 3832 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 75°36' E with said city limits, a distance of 2208 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 14°34' W with said city limits, a distance of 1204 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 75°36' E with said city limits, a distance of 1138 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 15°14' E with said city limits, a distance of 645 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 75°36' E with said city limits, a distance of 4603 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°35' E with said city limits, a distance of 5122 feet to
  an ell comer of said city limits and being an ell corner of this
  tract;
  THENCE N 75°37' E with said city limits, a distance of 659 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°36' E with said city limits, a distance of 2879 feet to a
  point in the northwesterly right-of-way line of Business Interstate
  Highway 20 (US Highway 80) and the most easterly southeast corner of
  said city limits also being a point of deflection of this tract;
  THENCE N 59°41' E with the northwesterly right-of-way line of said
  Business Interstate Highway 20, a distance of 4829 feet to a point
  near the northwest corner of Section 40, Block 38, T1S and being a
  point of deflection of this tract;
  THENCE S 14°24' E, a distance of 7260 feet to a point in the east line
  of Section 45, Block 38, T1S and being 1000 feet southerly of the
  southeasterly right-of-way line of Interstate Highway 20 and being
  a point of deflection of this tract;
  THENCE S 45°05' W 1000 feet southerly and parallel to the
  southeasterly right-of-way line of said Interstate Highway 20, a
  distance of 6527 feet to a point in the north line of Section 5,
  Block 38, T2S and in the south right-of-way line of Farm to Market
  Road 307 also being a point of deflection of this tract;
  THENCE N 76°37' E with the south right-of-way line of said Farm to
  Market Road 307, a distance of 2882 feet to a point near the
  northeast corner of a 320 acre City of Midland tract in Section 4,
  Block 38, T2S and being an ell corner of this tract;
  THENCE S14°25' E with the east line of said 320 acre tract, a
  distance of 5252 feet to a point in the south line of said Section 4
  and the north line of Section 9, Block 38, T2S and being an ell
  corner of this tract;
  THENCE N 75°36' E with the north line of said Section 9, a distance
  of 2768 feet to a point near the northeast corner of said Section 9
  and in the west right-of-way South County Road 1140 also being an
  ell corner of this tract;
  THENCE S 14°36' E with the west right-of-way line of said South
  County Road 1140, a distance of 5313 feet to a point in the north
  right-of-way line of East County Road 120 and being an ell corner of
  this tract;
  THENCE S 75°56' W with the north right-of-way line of said East
  County Road 120, a distance of 5150 to a point in the northeasterly
  right-of-way line of State Highway 158 and being a point of
  deflection of this tract;
  THENCE N 70°55' W with the northeasterly right-of-way line of said
  State Highway 158, a distance of 4453 to a point near the most
  southerly southwest corner of a 365.58 acre City of Midland tract as
  described in Volume 2308, Page 3, Official Public Records of
  Midland County and the southeast corner of Ralph H White tract also
  being a point of deflection of this tract;
  THENCE N 15°31' W with the east line of said Ralph H White tract and a
  west line of said City of Midland Tract, a distance of 732 feet to a
  point near the northeast corner of said Ralph H White tract and
  being a point of deflection of this tract;
  THENCE N 70°36' W with the north line of said Ralph H White tract, a
  distance of 171 feet to a point near the northwest corner of said
  Ralph H White tract and in the east line of a 1.00 acre City of
  Midland tract as described in Volume 2308, Page 3, Official Public
  Records of Midland County and being a point of deflection of this
  tract;
  THENCE S 15°31' E with the west line of said Ralph H White tract and
  the east line of said 1.00 acre City of Midland tract, a distance of
  733 feet to a point in the northeasterly right of-way line of said
  State Highway 158 and being a point of deflection of this tract;
  THENCE N 70°55' W with the south line of said 1.00 acre City of
  Midland tract and the northeasterly right-of-way line of said State
  Highway 158, a distance of 415 feet to the southwest corner of said
  1.00 acre City of Midland tract and being a point of deflection of
  this tract;
  THENCE N 15°31' W with the west line of said 1.00 acre City of
  Midland tract, a distance of 1252 feet to the northwest corner of
  said 1.00 acre City of Midland and being a point of deflection of
  said 365.58 acre City of Midland tract also being a point of
  deflection of this tract;
  THENCE S 75°57' W with a south line of said 365.58 acre City of
  Midland tract, a distance of 1419 feet to a point in the west line of
  Section 8, Block 38, T2S and being an ell corner of this tract;
  THENCE N 14'10' W with the west line of said Section 8, a distance of
  1274 feet to a point near the northwest corner of said Section 8 and
  being an ell corner of this tract;
  THENCE N 75°49' E with the north line of said Section 8, a distance
  of 36 feet to a point near the southeast corner of Section 6, Block
  38, T2S and being an ell corner of this tract;
  THENCE N 14'12' W with the east line of said Section 6, a distance of
  2124 feet to a point 1000 feet southerly of the southeasterly
  right-of-way line of said Interstate Highway 20 and being a point of
  deflection of this tract;
  THENCE S 44°40' W southerly and parallel to the southeasterly
  right-of-way line of said Interstate Highway 20, a distance of 3968
  feet to a point in the Midland city limits and being a point of
  deflection of this tract;
  THENCE S 14°09' E with said city limits, a distance of 611 feet to
  the most southerly southeast corner of said city limits and being an
  ell corner of this tract;
  THENCE S 75°32' W with the south line of said city limits, a distance
  of 10,595 feet to an ell corner of said city limits and being an ell
  corner of this tract;
  THENCE S 14°23' E with the said city limits, a distance of 750 feet
  to an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°29' W with said city limits, a distance of 677 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°32' E with said city limits, a distance of 781 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°24' W with said city limits, a distance of 1675 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 14°23' W with said city limits, a distance of 1041 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°29' W with said city limits, a distance of 1000 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 14°23' W said city limits, a distance of 500 feet to an ell
  corner of said city limits and being an ell corner of this tract;
  THENCE S 75°37' W with said city limits, a distance of 3137 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 14°18' E with said city limits, a distance of 570 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°42' W with said city limits, a distance of 1660 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 14°18' W with said city limits, a distance of 567 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°37' W with said city limits, a distance of 3390 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 15°02' E with said city limits, a distance of 709 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 74°54' W with said city limits, a distance of 1040 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 15°03' E with said city limits, a distance of 90 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°34' W with said city limits, a distance of 1064 feet to
  an ell corner of said city limits and being an ell corner of this
  tract;
  THENCE N 14°40' W with said city limits, a distance of 817 feet to an
  ell corner of said city limits and being an ell corner of this
  tract;
  THENCE S 75°44' W with said city limits, a distance of 559 feet to a
  point of curvature of said city limits and this tract;
  THENCE around a curve to the left in a southwesterly direction and
  with said city limits, said curve having a radius length of 10,509
  feet, a delta angle of 16°04', an arc length of 2947 feet and a chord
  length of 2937 feet bearing S 67°42" W to a point of tangency of said
  city limits and this tract;
  THENCE S 59°40' W with said city limits, a distance of 6362 feet to
  the Point of Beginning, containing approximately 54,050 acres of
  land, more or less.
  Bearings, distances and coordinates are relative to the Texas
  Coordinate System, 1983 NAD, Central Zone based on City of
  Midland's G.I.S Digital Map.
         SECTION 3.03.  (a)  The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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.
         (b)  The governor, one of the required recipients, has
  submitted the notice and article to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article with the governor, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  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 article are
  fulfilled and accomplished.
         SECTION 3.04.  (a)  Section 9016.111, Special District Local
  Laws Code, as added by Section 3.01 of this article, takes effect
  only if this Act receives a two-thirds vote of all the members
  elected to each house.
         (b)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 9016, Special
  District Local Laws Code, as added by Section 3.01 of this article,
  is amended by adding Section 9016.111 to read as follows:
         Sec. 9016.111.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (c)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         SECTION 3.05.  Except as provided by Section 3.04 of this
  article, this article takes effect September 1, 2011.
  ARTICLE 4.  HAYS COUNTY DEVELOPMENT DISTRICT NO. 1
         SECTION 4.01.  Section 1, Chapter 1503, Acts of the 77th
  Legislature, Regular Session, 2001, is amended by amending
  Subsections (a) and (c) and adding Subsection (d) to read as
  follows:
         (a)  The legislature finds that the creation of Hays County
  Development District No. 1 (the "district"), [and] the project
  approved by the Hays County Commissioners Court on January 11, 2000
  (the "project"), and other improvement projects described by
  Section 5A will serve the public purpose of attracting visitors and
  tourists to Hays County and will result in employment and economic
  activity in the manner contemplated by Section 52-a, Article III,
  Texas Constitution, and Chapter 383, Local Government Code.
         (c)  The legislature further finds that the creation and
  operation of the district and the acquisition or financing of the
  project or an improvement project described by Section 5A by the
  district serve the purpose of Section 59, Article XVI, and Section
  52, Article III, Texas Constitution, and that all steps necessary
  to create the district have been taken.
         (d)  The legislature further finds that the creation and
  continued operation of the district is essential to accomplish the
  purposes of Sections 52 and 52-a, Article III, and Section 59,
  Article XVI, Texas Constitution, and other public purposes stated
  in this Act.
         SECTION 4.02.  Section 5, Chapter 1503, Acts of the 77th
  Legislature, Regular Session, 2001, is amended to read as follows:
         Sec. 5.  POWERS.  (a) The district has all of the rights,
  powers, privileges, authority, functions, and duties provided by
  Chapters 375 and 383, Local Government Code, to county development
  districts and municipal management districts and by Chapters 49 and
  54, Water Code, to municipal utility districts.
         (b)  The district's rights, powers, privileges, authority,
  functions, and duties include, [including] but are not limited to:
               (1)  the authority to levy, assess, and collect ad
  valorem taxes for the purposes approved at the elections conducted
  on November 7, 2000;
               (2)  the authority, after approval by voters at an
  election conducted within the boundaries of the district, to levy,
  assess and collect taxes for maintenance and operating purposes in
  the manner set forth in Sections 49.107(a)-(e), Water Code, and for
  the repayment of bonds, notes, warrants, lease purchase agreements,
  certificates of assessment, certificates of participation in lease
  purchase agreements, and other interest-bearing obligations in the
  manner set forth in Sections 49.106(a)-(d), Water Code, and for all
  of the purposes for which the district may expend funds;
               (3)  to establish, levy, and collect special
  assessments in the manner specified in Sections 375.111-375.124,
  Local Government Code; provided, however, that Sections
  375.161-375.163, Local Government Code, shall not apply to the
  assessments imposed by the district;
               (4)  to utilize funds, whether the funds are derived
  from ad valorem taxes, sales and use taxes, hotel occupancy taxes,
  assessments, revenues from the project, or any other source, for
  payment of projects or services in the manner authorized by
  Section 375.181, Local Government Code, Chapter 54, Water Code, and
  Chapter 383, Local Government Code;
               (5)  to enter into obligations, including, but not
  limited to, lease purchase agreements, certificates of
  participation in lease purchase agreements, general obligation
  bonds and notes and revenue bonds and notes, and combination
  general obligation and revenue bonds and notes and other
  interest-bearing obligations, in the manner specified in Sections
  375.201-375.205 [375.201-375.204], Local Government Code. To
  enter into these obligations, the district shall obtain only those
  approvals required for the issuance of obligations by Hays County
  by Chapter 53, Acts of the 70th Legislature, Second Called Session,
  1987, and the approval of the attorney general;
               (6)  except as provided by Sections 5B and 5C, to adopt
  the powers of a road district under Section 52(b)(3), Article III,
  Texas Constitution, in the manner specified in Sections 53.029(c)
  and (d), Water Code;
               (7)  to levy, assess, and collect ad valorem taxes to
  make payments on a contract under Sections 49.108(a)-(d), Water
  Code, after obtaining those approvals specified in Section 1,
  Chapter 778, Acts of the 74th Legislature, Regular Session, 1995;
               (8)  to exercise all of the rights, powers, and
  authority of a road district, a municipal management district, and
  a municipal utility district [water control and improvement
  district which are not specifically contradicted by Chapter 383,
  Local Government Code]; and
               (9)  to exercise all of the rights, powers, and
  authority granted to the district by this Act, and all of the
  rights, powers, and authority granted to the district by Chapters
  383 and 375, Local Government Code, and to a municipal utility
  district by Chapters 49 and 54, Water Code, which are not contrary
  to [any provisions of] this Act, to finance, construct, or
  otherwise acquire an improvement project described by Section 5A or
  the project or any element of the project identified in the
  Commissioners Court Order Upon Hearing and Granting Petition
  Requesting the Creation of Hays County Development District No. 1
  and Appointing Temporary Directors dated January 11, 2000,
  including, but not limited to, a [the] hotel, a residential area of
  a development, a trail or related feature, a commercial activity or
  endeavor, a [the] golf course, [the] water, sewer, drainage, and
  road improvements, [the] organizational costs, and [the] costs of
  issuance of the obligations of the district.
         SECTION 4.03.  Chapter 1503, Acts of the 77th Legislature,
  Regular Session, 2001, is amended by adding Sections 5A, 5B, 5C, 5D,
  and 5E to read as follows:
         Sec. 5A.  IMPROVEMENT PROJECTS. The district may provide,
  or it may contract with a governmental or private entity to provide,
  the following types of improvement projects or activities in
  support of or incidental to those projects:
               (1)  the project approved by the Hays County
  Commissioners Court on January 11, 2000, wholly or partly; or
               (2)  a public improvement, facility, or service
  provided by a municipal utility district or municipal management
  district.
         Sec. 5B.  ROAD DISTRICT POWERS; BALLOT. If the district
  adopts the powers described by Section 5(b)(6), a ballot authorized
  by Section 53.029(c), Water Code, must reference the "Hays County
  Development District No. 1."
         Sec. 5C.  ROAD STANDARDS AND REQUIREMENTS. (a) A road
  project must meet all applicable construction standards, zoning and
  subdivision requirements, and regulations of each municipality in
  whose corporate limits or extraterritorial jurisdiction the road
  project is located.
         (b)  If a road project is not located in the corporate limits
  or extraterritorial jurisdiction of a municipality, the road
  project must meet all applicable construction standards,
  subdivision requirements, and regulations of each county in which
  the road project is located.
         (c)  If the state will maintain and operate the road, the
  Texas Transportation Commission must approve the plans and
  specifications of the road project.
         Sec. 5D.  LIMIT ON POWERS GRANTED BY OTHER SPECIAL DISTRICT
  LAWS.  Except as provided by this Act, the rights, powers, and
  authority of a road district, county development district,
  municipal management district, or municipal utility district
  granted by this Act may be exercised only in the manner provided by:
               (1)  Chapter 375, Local Government Code, to a municipal
  management district;
               (2)  Chapter 383, Local Government Code, to a county
  development district; and
               (3)  Chapters 49 and 54, Water Code, to a municipal
  utility district, including review and approval by the Texas
  Commission on Environmental Quality for water and wastewater
  improvements.
         Sec. 5E.  LIMIT ON EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain outside the district and in
  the corporate limits or extraterritorial jurisdiction of a
  municipality unless the governing body of the municipality consents
  by ordinance or resolution.
         SECTION 4.04.  Section 8, Chapter 1503, Acts of the 77th
  Legislature, Regular Session, 2001, is amended to read as follows:
         Sec. 8.  LEGISLATIVE FINDINGS.  [The legislature finds that
  the principal function of the district is to provide for
  development and operation of the project, to facilitate economic
  development, and to attract visitors and tourists, which will
  result in employment and economic activity in Hays County.] The
  legislature finds that the district may provide water and sewer,
  landscaping, road, drainage, and reclamation services to
  residential retail or commercial customers in the district. Except
  for purposes of Section 49.052, Water Code, the [The] district is a
  district described in Section 49.181(h)(4), Water Code.
         SECTION 4.05.  Section 9, Chapter 1503, Acts of the 77th
  Legislature, Regular Session, 2001, is amended to read as follows:
         Sec. 9.  ADDITION AND EXCLUSION OF LANDS. (a) Except as
  provided by Subsection (b), in [In] addition to the authority
  granted to the district by Section 383.084, Local Government Code,
  the district may add lands in the manner provided by Section 49.301,
  Water Code, and may exclude lands in the methods provided by
  Sections 49.303 through 49.308, Water Code.
         (b)  Section 42.0425, Local Government Code, applies to the
  annexation of property in the extraterritorial jurisdiction of a
  municipality.
         SECTION 4.06.  The legislature confirms and validates all
  actions of the Hays County Development District No. 1 that were
  taken before May 1, 2011, including any elections conducted by the
  district, including any election to impose maintenance and
  operation taxes or to adopt the powers of a road district.
         SECTION 4.07.  (a) The legal notice of the intention to
  introduce this article, setting forth the general substance of this
  article, has been published as provided by law, and the notice and a
  copy of this article 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.
         (b)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this article with the governor, the
  lieutenant governor, and the 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 article are
  fulfilled and accomplished.
         SECTION 4.08.  This article takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this article takes effect September 1, 2011.
  ARTICLE 5.  EFFECTIVE DATE
         SECTION 5.01.  Except as otherwise provided by this Act,
  this Act takes effect September 1, 2011.

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