HBA-NMO C.S.H.B. 2332 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2332
By: Lewis, Ron
Natural Resources
3/29/99
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Existing law regarding the administration and consolidation of drainage
districts may provide certain inconsistencies.  C.S.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 file, rather than transmit, its additional bond authorization
certification with maps and profiles prepared in the district office, in
addition to by the district engineer.  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.  UNEXPENDED BOND PROCEEDS.  Authorizes that any money received
from the sale of bonds by a consolidating district that has not been spent
before the date of consolidation be spent 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), 56.073 (Tax Assessor and
Collector), 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. 
  

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 7, by requiring the
governing board of the drainage district to certify, rather than certify to
the Texas Natural Resource Conservation Commission, the need for additional
bond authorization and to file, rather than transmit, the certification
with maps and profiles prepared in the district office, in addition to by
the district engineer. 

The substitute differs from the original in SECTION 12 (proposed Section
56.807, Water Code), by referring to Section 59, Article XVI, Texas
Constitution, rather than Article XVI, Section 59 of the Texas
Constitution, regarding consolidated districts. 

The substitute differs from the original in SECTION 12, by replacing the
proposed Section 56.809 (Voted But Unissued Bonds) with a new Section
56.809, Water Code, as follows: 

Sec. 56.809.  UNEXPENDED BOND PROCEEDS.  Authorizes that any money received
from the sale of bonds by a consolidating district that has not been spent
before the date of consolidation be spent by the consolidated district only
on the project for which the bonds were issued.  

The substitute differs from the original in SECTION 13 by adding the repeal
of Section 56.073 (Tax Assessor and Collector), Water Code.