BILL ANALYSIS C.S.H.B. 1531 By: Stiles 3-27-95 Committee Report (Substituted) BACKGROUND Municipal Utility Districts (MUDs) are created to control and distribute storm, flood, and river water for irrigation, power and other useful purposes; reclamation and irrigation of arid land; drainage; conservation and development of hydro-electric power; conservation of forests; navigation; protection of the state's water purity and sanitation; the disposal of waste; the supplying of water; alteration of land elevations; and the provision of recreational facilities. The legislature is given the authority to create these districts in Article 16, Section 59 of the Texas Constitution. MUDs are governed by Chapters 50 and 54 of the Water Code. The citizens of Jefferson County feel that the creation of a MUD will aid in the regulation of water use and water quality. PURPOSE This bill creates a municipal utility district in Jefferson County. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS Section 1. Creates a conservation and reclamation district, pursuant to the Constitution, in Jefferson County, to be known as the "Hamshire Municipal Utility District"; makes a legislative declaration of necessity. Section 2. Provides a definition for "district." Section 3. Specifies boundaries of the district. Section 4. Makes a legislative finding that the boundaries form a closure; provides that any mistake made in the field notes does not affect the powers of the district. Section 5. Makes a finding of public benefit to land and property located in the district under powers conferred by the Constitution. Section 6. (a) Grants the district powers conferred by general law to municipal utility districts created under the Constitution, and including Chapters 50 and 54 of the Water Code; states that this Act prevails over general law inconsistent with this Act. (b) Provides that the district is subject to state supervision through the Texas Natural Resource Conservation Commission. Section 7. Provides for a board of seven directors and the terms of service and qualifications for temporary, initial, and permanent directors. Section 8. Names the temporary directors; provides procedure for filling a vacancy. Section 9. (a) Requires an election to be held to confirm the establishment of the district and to elect initial directors. (b) States that Section 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section. (c) Provides that the ballot for the confirmation election may contain a proposition for the levy of a maintenance tax or a special benefits tax or both. Section 10. Provides electoral procedure for the election of directors. Section 11. Provides procedure for filling a vacancy. Section 12. (a) Provides that, in addition to or instead of an ad valorem tax, the district may levy, assess, and collect an annual special benefits tax; defines property subject to such tax. (b) Provides for notice and public hearing requirements necessary before the district may levy a special benefits tax. Section 13. Provides that the district may enter into contracts for the purchase or sale of both raw and treated water. Section 14. Provides that the district may acquire, develop, and use underground or surface water rights. Section 15. (a) Authorizes the Board of Directors, subject to the authority of the TNRCC, to establish standard specifications for certain facilities within the district's boundaries. (b) Provides that appeal from an order adopting standard specifications is to the district court of Jefferson County, and the substantial evidence rule applies. (c) Grants the district the ability to seek to enjoin the construction of a facility, an addition to an existing facility, or the operation of a facility that is not in compliance with the standard specifications. (d) Requires that the standard specifications shall be filed with the TNRCC. (e) Provides that specifications adopted under this section do not apply within the boundaries or extraterritorial jurisdiction of a municipality unless the governing body of the municipality by resolution consents. Section 16. Provides that a contract for the acquisition of an existing water or sewer facility may be made on terms agreed on by the parties. Section 17. Legislative findings that procedural, legal, and constitutional requirements have been met. Section 18. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The boundary description in H.B. 1531 was not adequate to conduct boundary closure; this description was corrected in C.S.H.B. 1531. Additional powers and duties listed in the original bill, including the section relating to maintenance taxes are included by reference in the substitute version by granting the district powers and authority provided under general law in Chapters 50 and 54, Water Code. The substitute includes other nonsubstantive language additions and changes to conform the substitute to legislative council style. SUMMARY OF COMMITTEE ACTION H.B.1531 was considered by the committee in a public hearing on March 27, 1995. No testimony was received. The committee considered a substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.