HBA-NMO C.S.H.B. 2956 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2956 By: Solomons Natural Resources 4/11/1999 Committee Report (Substituted) 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. C.S.H.B. 2956 provides that certain fresh water supply districts under certain conditions 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 has the right to conduct contract elections in the manner set forth in Sections 49.108(a)-(d), Water Code, without the approval set forth in Section 49.108(e), Water Code, if all land that would by subject to the contract election was in the boundaries of a district covered by this section that was party to an agreement with a municipality before September 1, 1997, calling for the issuance of district bonds for road or bridge improvements, and the contract is approved by the municipality that is a party to the agreement. _This section applies to a fresh water supply 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 the 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. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in the caption. The substitute differs from the original in SECTION 1, in the amendment of Section 53.029, Water Code, by providing that a district covered by this section has the right to conduct contract elections in the manner set forth in Section 49.108(a)-(d), Water Code, without the approval set forth in Section 49.108(e), Water Code, if all land that would be subject to the contract election was in the boundaries of a district covered by this section that was party to an agreement with a municipality before September 1, 1997, calling for the issuance of district bonds for road or bridge improvements, and if the contract is approved by the municipality that is a party to the agreement. The original granted the right to conduct such elections, 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.