HBA-RBT C.S.H.B. 3802 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3802 By: Hilbert Natural Resources 4/9/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Northwest Harris County is facing subsidence penalties if is no long-range plan for conversion to surface water is in place prior to the year 2003. The effective date of such penalties may be moved up to 2001. Water districts will be forced to contract for surface water or pay the penalties. The legislature may not meet again prior to the time any contractual process is begun. C.S.H.B. 3802 puts procedures in place for long-term contracts by a water district with a population of 2.8 million or more. 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 Subchapter D, Chapter 49, Water Code, by adding Section 49.1085, as follows: Sec. 49.1085. CONTRACT ELECTIONS IN COUNTY WITH POPULATION GREATER THAN 2.8 MILLION. (a) Provides that this section applies only to a district located entirely in a county with a population of 2.8 million or more. (b) Prohibits an applicable district from entering into any contract for a term that will exceed three years for the purpose of obtaining surface water for use or sale in the district, before obtaining the approval of the Texas Natural Resources Conservation Commission (commission) in the same manner as a contract subject to Section 49.181 (Authority of Commission Over Issuance of District Bonds), Water Code and the contract is approved in an election in the manner provided by Sections 49.108(b) and (c) (Contract Elections), Water Code. (c) Provides that Section 49.182 (Commission Supervision of Projects and Improvements), Water Code, applies to a contract to which Subsection (b) applies. (d) Requires the books and records of all parties to a contract to which Subsection (b) applies to be made available for inspection by the commission and by a district with which the party has contracted as necessary for the commission to perform its duties under this section and for the district to comply with Subchapter G (Audit of Districts), Water Code. SECTION 2. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 by inserting a complete statutory reference with respect to the approval of a contract in an election, and by making nonsubstantive modifications to the language of the bill.