HBA-KDB H.B. 2994 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2994 By: Lewis, Ron Natural Resources 3/27/2001 Introduced BACKGROUND AND PURPOSE The 75th Legislature enacted legislation which set forth procedures for general law district contract elections. Such a district is required to obtain approval from the executive director of the Texas Natural Resource Conservation Commission (TNRCC) before entering into an obligation to collect tax for debt that exceeds three years, unless the district has a contract with another district. House Bill 2994 provides that such a district may also be exempt from obtaining approval from the executive director of TNRCC if the district has a contract with a municipality. 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. ANALYSIS House Bill 2994 amends the Water Code to establish that provisions providing that certain districts must obtain approval from the executive director of the Texas Natural Resource Conservation Commission before the district enters into an obligation to collect tax for debt that exceeds three years do not apply to contract taxes that are levied to pay for a district's share of bonds issued by a municipality. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect on September 1, 2001.