HBA-NMO H.B. 2956 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2956
By: Solomons
Natural Resources
3/22/99
Introduced



BACKGROUND AND PURPOSE 

In 1995, the City of Lewisville entered into contracts with two fresh water
supply districts which encompass 2600 acres within the city's
extraterritorial jurisdiction and with the owners of the land. Pursuant to
these contracts, the voters in one fresh water supply district voted in a
tax, authorized by Section 49.108, Water Code, to make payments to the City
of Lewisville, and the city issued bonds to finance water, sewer, drainage,
and road improvements. 

In 1997, the 75th Texas Legislature enacted legislation adding Subsection
(e) to Section 49.108, which sets forth the procedure for general law
district contract elections.  Subsection (e) requires certain districts to
obtain approval from the executive director of the Texas Natural Resource
Conservation Commission (TNRCC) before entering into an obligation under
this section to collect tax for debt that exceeds three years. 

Section 49.108(e) and the subsequent regulations promulgated by  TNRCC
relating to that subsection have altered the economics of the contractual
agreements between the City of Lewisville, the fresh water supply
districts, and the landowners. 

H.B. 2956 provides that certain fresh water supply districts have the right
to conduct contract elections without the approval required by Section
49.108(e), Water Code.                 

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 53.029, Water Code, by adding Subsection (e), as
follows: 

(e) Provides that a district covered by this section, or which has retained
the powers set forth in this section, has the right to conduct contract
elections in the manner set forth in Section 49.108(a)-(d), Water Code.
Provides that the approval set forth in Section 49.108(e), Water Code, is
not required, if the district is located wholly or partially within the
boundaries or extraterritorial jurisdiction of one or more municipalities
and obtains the approval of the contract by such a municipality or
municipalities. 

_This section applies to a district located in or adjacent to a county
having a population of or greater than 1.18 million, according to the last
federal census. 

_Section 49.108,Water Code, sets forth the procedure for contract
elections.  Section 49.108(e) provides that district must obtain approval
by the executive director of the Texas Natural Resource Conservation
Commission before it enters into an obligation under this section to
collect tax for debt that exceeds three years. 

SECTION 2.Emergency clause.
  Effective date: upon passage.