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.