BILL ANALYSIS



C.S.H.B. 2139
By: Combs
4-28-95
Committee Report (Substituted)


BACKGROUND
Travis County Water Conservation and Improvement District was
created in 1957 to provide retail water service in a part of
Southwest Travis County.  The District has a wholesale water supply
from the City of Austin.  Most of the District is located near the
"Y" at Oak Hill.  A small part of the District is the Bee Cave
Community.  The District has historically had difficulty in
supplying adequate water pressure to its Bee Cave customers. 
Correction of the problem would require the District to make a
significant capital expenditure.
     
The Bee Cave community was incorporated as the Village of Bee Cave
in 1987.  The Village has arranged to provide a municipal water
supply within its city limits and its extra-territorial
jurisdiction (ETJ), pursuant to a wholesale contract with the Lower
Colorado River Authority. The Village cannot begin this project
until the territory within its service area that is within Travis
County W.C.I.D. No. 14 is deannexed.

PURPOSE
To exclude certain areas from W.C.I.D. No. 14 and would allow the
Village of Bee Cave to provide a municipal water supply within its
city limits and its ETJ.

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.     Defines "district" and "board".

SECTION 2.     Describes areas which the board may exclude from
               the district by order.

SECTION 3.     Provides that the board will provide the executive
               director of Texas Natural Resources Conservation
               Commission a description of the land that is
               excluded under this Act within 30 days after the
               effective date.

SECTION 4.     Provides that the exclusion of territory under this
               Act does not affect, diminish, or impair the rights
               of the holders of any outstanding and unpaid bond,
               warrants, or other obligations of the district or
               the obligation of the board annually to adjust the
               district's tax rate to provide sufficient tax
               revenues for debt service.

SECTION 5.     (a)  Provides that land excluded under this Act is
               not released from the payment of its pro rata share
               of the district's indebtedness; (b) provides that
               the district shall continue to levy taxes each year
               on the property excluded from the district at the
               same rate levied on other property of the district,
               until the taxes collected from the excluded land
               equal its pro rata share of the indebtedness of the
               district at the time of the exclusion of the land;
               provides that the taxes collected shall be applied
               exclusively to the payment of the excluded land's
               pro rata share of the indebtedness; (c) provides
               that an owner of land in the excluded area may pay
               in full, at any time, the owner's share of the pro
               rata share of the indebtedness of the district.

SECTION 6.     Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE
(1) In Section 2, the Original provides that "There is hereby
excluded from the district the following described area...."  In
Section 2, the Substitute provides that "The board by order may
exclude from the district the following described area...."  (There
is no variance in the "described area" between Original and
Substitute).

(2) In Section 5, the two versions differ as follows:

     ORIGINAL:  Provided that the district may tax the
     excluded properties and improvements for the excluded
     area's prorata share of the district's remaining
     indebtedness for the district's series 1963, 1974, and
     1986 bonds.

     SUBSTITUTE:   (a)  Provides that land excluded under this
     Act is not released from the payment of its pro rata
     share of the district's indebtedness; (b) provides that
     the district shall continue to levy taxes each year on
     the property excluded from the district at the same rate
     levied on other property of the district, until the taxes
     collected from the excluded land equal its pro rata share
     of the indebtedness of the district at the time of the
     exclusion of the land; provides that the taxes collected
     shall be applied exclusively to the payment of the
     excluded land's pro rata share of the indebtedness; (c)
     provides that an owner of land in the excluded area may
     pay in full, at any time, the owner's share of the pro
     rata share of the indebtedness of the district.

SUMMARY OF COMMITTEE ACTION
H.B.2139 was considered by the committee in a public hearing on
April 18, 1995.
No testimony was received.
The committee considered a complete substitute for the bill.  No
action was taken on the substitute.
The bill was left pending.

H.B.2139 was considered by the committee in a formal meeting on
April 28, 1995.
No testimony was received.
The committee considered a complete 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 and be sent to the
Committee on Local and Consent Calendars, by a record vote of 8
ayes, 0 nays, 0 pnv, 1 absent.