HBA-NMO H.B. 2332 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2332 By: Lewis, Ron Natural Resources 3/22/99 Introduced BACKGROUND AND PURPOSE Existing law regarding the administration and consolidation of drainage districts may provide certain inconsistencies. H.B. 2332 provides that a drainage district (district) is governed by a board of three directors, unless special law provides otherwise, and transfers certain authority from the commissioners court of each board's respective county to that board and the Texas Natural Resource Conservation Commission. This bill also sets forth new procedures for the consolidation of districts and repeals certain sections of the Water Code corresponding to changes made in this bill. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 56.061, Water Code, to provide that a drainage district (district) is governed by a board of three directors (board) unless special law provides otherwise. Requires the commissioners court of the county in which the district is organized (commissioners court) to appoint three directors for the district to serve until permanent directors are elected. Makes conforming changes. SECTION 2. Amends Section 56.064(a), Water Code, to make conforming changes. SECTION 3. Amends Section 56.0641, Water Code, to make changes conforming to legislation (SB 626) enacted by the 74th Texas Legislature. SECTION 4. Amends Section 56.0642, Water Code, to make a change conforming to legislation (SB 626) enacted by the 74th Texas Legislature. SECTION 5. Amends Section 56.082(a), Water Code, to provide that the commissioners court, except as otherwise provided by this chapter, has exclusive jurisdiction to hear and determine all proceedings of a district during its organization, rather than after it is organized. Makes a nonsubstantive change. SECTION 6. Amends Section 56.123(a), Water Code, to authorize the board to make certain changes in the district, after the board, rather than the commissioners court, authorizes bonds to be issued. SECTION 7. Amends Sections 56.124(a) and (b), Water Code, to require the board to certify to the Texas Natural Resource Conservation Commission (TNRCC) the additional bond authorization. Makes a conforming change. SECTION 8. Amends Section 56.125(b), Water Code, to require the board, rather than the commissioners court, to order an election to be held in the district at the earliest legal time, after the engineer's report is approved or modified by TNRCC, rather than by the commissioners court. SECTION 9. Amends Section 56.135, Water Code, to make conforming changes. SECTION 10. Amends Section 56.141(c), Water Code, to make conforming changes. SECTION 11. Amends Section 56.142, Water Code, to make conforming changes. SECTION 12. Amends Subchapter K, Chapter 56, Water Code, as follows: SUBCHAPTER K. CONSOLIDATION OF DISTRICTS Sec. 56.801. New Title: CONSOLIDATION OF DISTRICTS. Authorizes two or more districts governed by this chapter to consolidate into one district as provided by this subchapter. Deletes existing text referring to the initiation of consolidation by petition. Sec. 56.802. New Title: CONSOLIDATION BY AGREEMENT. Authorizes the boards of the districts proposed to be consolidated to initiate consolidation. Sets forth the procedure for consolidation by agreement. Deletes existing text requiring the commissioners court to order and give notice of an election, if the petition meets certain requirements. Sec. 56.803. CONSOLIDATION BY PETITION. Authorizes consolidation to be initiated by petition requesting that the districts be consolidated. Sets forth the procedure for consolidation by petition. Deletes existing text requiring the commissioners court to canvass the returns of the election and publish such results. Sec. 56.804. TIME OF HOLDING ELECTION; COST OF ELECTION. Requires that the election be held on a uniform election day in January or May. Provides that the election date selected must provide sufficient time for the preparation of the necessary voter registration lists for each district. Provides that each district proposed to be consolidated is responsible for holding the election in that district and for the cost of the election in that district. Sec. 56.805. BALLOT. Requires the election ballot to be printed to permit voting for or against the proposition of consolidation. Sec. 56.806. CANVASS; RESULT. Requires the board of each district proposed to be consolidated to canvass the returns of the election held in that district and publish such results. Provides that the districts become one district and are governed as one district, if the majority of votes cast in each district favor the consolidation. Prohibits another election, if the proposition does not carry, from being held in any district that was proposed to be consolidated for at least two years after the results of the election are declared. Sec. 56.807. GOVERNING CONSOLIDATED DISTRICTS; ELECTION OF DIRECTORS. Provides that two or more districts, when consolidated, become one district and are governed as one district. Sets forth the procedure for the governing of consolidated districts and the election of directors. Sec. 56.808. TITLE TO PROPERTY; ASSUMPTION OF DEBT. Provides that title to all property of the consolidating districts vests in the consolidated district. Provides that the consolidated district assumes and is liable for the outstanding indebtedness of the consolidating districts. Provides that all enforceable contract rights held or owned by a consolidating district are owned and held by the consolidated district. Provides that the consolidated district is liable for the contractual obligations of a consolidating district. Sec. 56.809. VOTED BUT UNISSUED BONDS. Provides that the consolidated district is authorized to issue the voted but unissued bonds of a consolidating district and to levy a tax to pay for the bonds. Authorizes the spending of any unspent money received from the sale of bonds by a consolidating district by the consolidated district only on the project for which the bonds were issued. Sec. 56.810. FISCAL YEAR; BUDGET. Requires a consolidated district to adopt a fiscal year and a budget. Sets forth the procedure for the adoption of a fiscal year and a budget. SECTION 13. Repealer: Sections 56.070 (Treasurer), 56.071 (Treasurer's Bond), 56.072 (Treasurer's Compensation), 56.112 (Report to the Board), 56.117 (Duty to Construct Improvements), 56.118 (Right-of-Way), 56.127 (Maintenance Report), and 56.181 (Duties of Treasurer), Water Code. SECTION 14. Effective date: September 1, 1999. SECTION 15. Emergency clause.