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.