HBA-RBT C.S.H.B. 3798 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3798 By: Seaman Natural Resources 4/21/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Current law provides for the creation of groundwater conservation districts to plan, develop, and regulate the use of water. C.S.H.B. 3798 creates the Texana Groundwater Conservation District. 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. CREATION. Creates a groundwater conservation district, to be known as the Texana Groundwater Conservation District, in Jackson County, subject to approval at a confirmation election under Section 8 of this Act. Provides that the district is a governmental agency and a body politic and corporate. Provides that the district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. SECTION 2. DEFINITION. Defines "district" as the Texana Groundwater Conservation District. SECTION 3. BOUNDARIES. Provides that the boundaries of the district are coextensive with the boundaries of Jackson County. SECTION 4. FINDING OF BENEFIT. Provides finding of benefit. SECTION 5. POWERS. Provides that the district has all the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36 (Groundwater Conservation Districts), Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution. Provides that Chapter 49 (Provisions Applicable to All Districts), Water Code, does not apply to the district. Provides that this Act prevails over any provision of general law that is in conflict or inconsistent with this Act. SECTION 6. BOARD OF DIRECTORS. Provides that the district is governed by a board of seven directors. Sets forth the qualifications of the board members, the length of term, residency requirements, procedure in the event of a vacancy, and prohibits the director from receiving any compensation for service as a director but may be reimbursed for actual expenses of attending meetings at the rate in effect for employees of Jackson County. SECTION 7. APPOINTMENT OF TEMPORARY DIRECTORS. Sets forth the procedures for appointment of temporary directors and provides that they serve until their successors are elected as provided by Section 8. SECTION 8. CONFIRMATION AND DIRECTORS ELECTION. Requires the temporary directors to call and hold an election to confirm establishment of the district and to elect initial directors. Provides that Section 41.001(a) (Uniform Election Dates), Election Code, does not apply to a confirmation election held as provided by this section. Provides that except as provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b)-(h), Water Code, and the Election Code. Provides that this Act, if the establishment of the district has not been confirmed at an election held under this section before the second anniversary of the effective date of this Act, expires on that date. Prohibits the temporary directors, if the majority of the votes cast at an election held under this section is against the confirmation of the district, from calling another election under this section before the first anniversary of that election. SECTION 9. ELECTION OF DIRECTORS. Sets forth the procedure for the election of directors. Sets forth staggered terms for the directors. SECTION 10. LIMITATION ON TAXATION. Prohibits the district from levying or collecting an ad valorem tax at a rate that exceeds two cents on the $100 valuation of taxable property in the district. SECTION 11. CONTRACTS WITH GOVERNMENT ENTITIES. Authorizes the district to contract with other government entities. Authorizes the district to contract with other governmental entities, including river authorities located in the district, for the performance of any or all district functions. Authorizes a river authority with which the district contracts under this section to perform district functions as provided by the contract. SECTION 12. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Provides that all procedural requirements for enacting legislation have been met SECTION 13. Effective date: September 1, 1999. SECTION 14. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in the caption by citing the creation of the Texana, rather than Jackson County, Groundwater Conservation District. The substitute differs from the original in SECTION 1 (Creation) by creating the Texana, rather than Jackson County, Groundwater Conservation District. The substitute differs from the original in SECTION 2 (Definition) by making a conforming change. The substitute differs from the original in SECTION 5 (Powers) by deleting proposed Subsection (b), which provides that the rights, powers, privileges, authority, functions, and duties of the district are subject to the continuing right of supervision of the state, to be exercised by and through the Texas Natural Resource Conservation Commission. The substitute differs from the original in SECTION 6 (Board of Directors) by providing that the district is governed by a board of seven, rather than five, directors. Modifies this section by requiring that one director be elected from each county commissioners precinct and that three directors be elected at large, rather than providing that the directors are appointed by the Jackson County Commissioners Court. Modifies this section by providing that directors other than initial directors serve staggered four-year, rather than three-year, terms. Modifies this section by requiring the remaining directors, rather than the commissioners court, if there is a vacancy on the board, to appoint a director to serve the remainder of the term. Deletes provision that requires the commissioners court to appoint a director to succeed a director on or before the date the director's term expires. The substitute differs from the original in SECTION 7 (Appointment and Terms of Initial Directors) by changing the title to read "Appointment of Temporary Directors." Modifies this section by setting forth the procedures for appointment of temporary directors and providing that they serve until their successors are elected as provided by Section 8, rather than setting forth appointment and terms of initial directors. The substitute differs from the original in SECTION 8 (Confirmation Election) by changing the title to read "Confirmation and Directors Election." Modifies this section by requiring the temporary directors to call and hold an election to confirm establishment of the district and to elect initial directors. Modifies this section by providing that this Act, if the establishment of the district has not been confirmed at an election held under this section before the second, rather than forth, anniversary of the effective date of this Act, expires on that date. Adds Subsection (e) to prohibit the temporary directors, if the majority of the votes cast at an election held under this section is against the confirmation of the district, from calling another election under this section before the first anniversary of that election. Adds a new SECTION 9 (Election of Directors). For complete analysis of this new section see the Section-by-Section Analysis portion of this document. Redesignates SECTION 9 (Limitation on Taxation) of the original as SECTION 10, and modifies it by prohibiting the district from levying or collecting an ad valorem tax at a rate that exceeds two, rather than three, cents on the $100 valuation of taxable property in the district. Redesignates SECTION 10 (Contracts with Government Entities) of the original as SECTION 11, and modifies it by adding Subsection (b) to authorize the district to contract with other governmental entities, including river authorities located in the district, for the performance of any or all district functions. Subsection (b) also authorizes a river authority with which the district contracts under this section to perform district functions as provided by the contract. Redesignates SECTIONS 11 (Findings Relating to Procedural Requirements), 12 (Effective Date, and 13 (Emergency) of the original, as SECTIONS 12, 13, and 14.