BILL ANALYSIS


                                                        H.B. 2189
                                               By: Harris (Brown)
                                                Natural Resources
                                                         05-15-95
                                Senate Committee Report (Amended)
BACKGROUND

Compliance with certain laws governing conservation and reclamation
districts has become unnecessarily cumbersome and costly for the
districts, especially regarding elections of district directors;
the sale, transfer, exchange, or abandonment of surplus district
property; and the construction of capital improvements.

PURPOSE

As proposed, H.B. 2189 establishes guidelines for common elections
between two or more conservation or reclamation districts, the
removal of board members from governing boards, and the sale or
exchange of surplus property.  The bill also increases the
compensation that directors of certain districts are authorized to
receive for service to the district.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 50B, Water Code, by adding Sections
50.0243 and 50.027, as follows:

     Sec. 50.0243.  COMMON ELECTIONS.  (a) Authorizes two or more
     conservation or reclamation districts to designate a common
     election office and common early and regular polling places to
     elect district directors, if the districts are located in the
     same county, substantially all of the property in the
     districts constitutes part of a single community development
     plan, and common water supply and wastewater systems serve the
     districts.
     
     (b)-(c) Set forth requirements for a common election office
       and polling places.
       
       (d) Authorizes certain districts to designate a common
       election officer and voting officials for commonly held
       elections.  Sets forth requirements for the officer and
       officials.
       
       Sec. 50.027.  REMOVAL OF MEMBERS OF GOVERNING BOARDS.  (a)
     Authorizes a conservation or reclamation district's governing
     board to remove a board member under specific circumstances. 
     Requires the board to provide written notice of the removal to
     the removed member.
     
     (b) Sets forth guidelines for the appeal and reinstatement
       of a removed board member.
       
       (c) Sets forth the circumstances under which a member's
       office becomes vacant.
       
       SECTION 2.   Amends Chapter 50C, Water Code, by adding Sections
50.065 and 50.066, as follows:

     Sec. 50.065.  SALE OR EXCHANGE OF SURPLUS PROPERTY.  (a)
     Defines "surplus property."
     
     (b) Authorizes a conservation or reclamation district to
       sell surplus property or exchange it for property needed by
       the district.
       
       (c) Authorizes a district to abandon surplus property
       acquired at no cost to the district or to release the
       property to the person, or the person's successors, who
       provided it.
       
       (d) Authorizes a district to transfer surplus property or to
       exchange it with another governmental subdivision.
       
       (e) Authorizes a district to transfer, abandon, or release
       small portions of surplus property included in boundary,
       surveying, or encroachment conflicts, or to exchange those
       portions with the abutting property owner.
       
       (f) Authorizes a district to publish advance notice of a
       private or public sale under Subsection (b) for a specific
       time period.
       
       (g) Requires a district to apply proceeds from a sale to
       outstanding district bonds secured by pledging tax revenues,
       if required by applicable bond resolutions.  Authorizes a
       district to use proceeds for any purpose if the district has
       no outstanding bonds to which it must apply proceeds.
       
       (h) Provides that Section 272.001, Local Government Code,
       does not apply to the disposition of surplus property under
       Subsection (c), (d), or (e).
       
            Sec. 50.066.  LABORATORY SERVICES.  Authorizes a district to
     contract with any person to provide or receive laboratory
     services related to environmental health or drinking water
     testing.
SECTION 3. Amends Section 50.107(a), Water Code, to provide that
this section does not apply to bonds issued and approved by the
Farmers Home Administration, the United States Department of
Agriculture, or the Texas Water Development Board.

SECTION 4. Amends Section 51.080, Water Code, as follows:

     Sec. 51.080.  COMPENSATION OF DIRECTORS.  (a) Entitles a
     director of a conservation or reclamation district to receive
     fees of office of not more than $100, instead of $50, a day
     per day spent performing the duties of the director. 
     Prohibits the fees of office from exceeding $500, instead of
     $200, a month, regardless of the number of days spent serving
     the district that month.
     
     (b) Authorizes a director to receive reimbursement of
       expenses incurred in service to the district.
       
       (c) Expands the required contents of the director's
       statement necessary for compensation or reimbursement. 
       Makes conforming and nonsubstantive changes.
       
       SECTION 5.   Amends Section 51.131(a), Water Code, to limit the fines
which the board of directors (board) of a conservation or
reclamation district is authorized to charge to $1,000, rather than
$200.

SECTION 6. Amends Section 51.360, Water Code, as follows:

     Sec. 51.360.  New heading: OPERATION AND MAINTENANCE TAX.  (a)
     Authorizes a water control and improvement district to levy
     and collect a tax for operation purposes, including funds for
     constructing and acquiring all necessary land, works,
     appliances, and equipment of the district.
     
     (b) Makes conforming changes.
       
       (c) Authorizes a district to use money from its tax revenue
       to reimburse, only after approval of the executive director
       of the Texas Natural Resource Conservation Commission
       (commission), a property developer in the district or the
       developer's assigns for planning, construction, or
       acquisition of facilities.
       
       SECTION 7.   Amends Section 53.070, Water Code, as follows:

     Sec. 53.070.  SUPERVISOR'S COMPENSATION.  Entitles a
     supervisor of a fresh water supply district to receive fees of
     office of not more than $100, instead of $50, per day for each
     day spent performing the duties of a supervisor.  Prohibits
     the fees of office from exceeding $500 in any one month,
     regardless of the number of days spent serving the district
     during that month.
     
     (b) Authorizes a supervisor to receive reimbursement of
       expenses incurred in service to the district, with the
       board's approval.
       
       (c) Expands the required contents of the supervisor's
       statement, to be filed with the secretary, necessary for the
       compensation or reimbursement of expenses.
SECTION 8. Amends Section 53.122(b), Water Code, to increase the
fine limit the board of a fresh water supply district is authorized
to charge.

SECTION 9. Amends Section 54.114, Water Code, as follows:

     Sec. 54.114.  FEES OF OFFICE.  (a) Entitles a director of a
     municipal utility district to receive fees of office of not
     more than $100, rather than $50, per day for each day spent
     performing the duties of a director.  Prohibits the fees of
     office from exceeding $500, rather than $200, in any one
     month, regardless of the number of days spent serving the
     district during that month.
     
     (b) Authorizes a director to receive reimbursement of
       expenses incurred in service to the district.
       
       (c) Requires the director to file a signed statement with
       the secretary, showing the number of days spent serving the
       district, expenses incurred, and a description of the duties
       performed while serving the district.
SECTION 10.    Amends Section 54.209(a), Water Code, to raise the
fine limit to $1,000, instead of $200, that the board of a
municipal utility district is authorized to charge.

SECTION 11.    Amends Section 54.311, Water Code, as follows:

     Sec.  54.311.  New heading: OPERATION AND MAINTENANCE.
     
     (a)-(b) Make conforming changes.
     (c) Authorizes a municipal utility district to use tax
       revenue for any purpose, if the money is not needed for the
       purposes for which it was collected.
     (d) Makes conforming changes.
SECTION 12.    Amends Section 55.111, Water Code, as follows:

     Sec. 55.111.  COMPENSATION OF DIRECTORS.  (a) Entitles a
     director of a water improvement district to receive fees of
     office of not more than $100, instead of $50, per day for each
     day spent performing the duties of a director.  Prohibits the
     fees of office from exceeding $500 in any one month,
     regardless of the number of days spent serving the district.
     
     (b) Authorizes a director to receive reimbursement of
       expenses incurred in service to the district.
       
       (c) Requires the director to file a signed statement with
       the secretary.  Expands the required contents of the
       statement.
       
       SECTION 13.  Amends Section 55.252(a), Water Code, to increase
the fine limit to $1,000, instead of $100, for violation of this
subchapter.

SECTION 14.    Amends Chapter 56B, Water Code, by adding Section
56.033, as follows:

     Sec.  56.033.  ALTERNATE PROCEDURE FOR CREATION.  (a)
     Authorizes the landowner of a defined area of territory not
     included in a drainage district to file with the commissioners
     court a petition requesting an election on the creation of a
     drainage district.  Requires the petition to be signed by at
     least five percent of the registered voters in the territory;
     and describe the territory by metes and bounds.
     
     (b) Requires the commissioners court to call and hold a
       hearing to determine if the petition meets the requirements
       of Subsection (a).
       
       (c) Requires the commissioners court, if it determines the
       petition meets the requirements of Subsection (a), to order
       an election held in the proposed district to determine
       whether or not the drainage district should be created and
       whether or not the district should issue bonds and levy
       taxes to pay for the bonds.
       
       (d) Provides that the provisions of this subchapter, other
       than Section 56.019, govern the hearing and election.
SECTION 15.    Amends Section 56.067, Water Code, as follows:

     Sec. 56.067.  DIRECTOR'S COMPENSATION.  (a) Entitles the
     director of a drainage district to receive for services not
     more than $100, rather than $50, a day per day spent serving
     the district.
     
     (b) Authorizes a director to receive reimbursement of
       expenses incurred in service to the district.
       
       (c) Requires the director to submit a signed statement to
       the commissioners court before accounts are approved.
       
       SECTION 16.  Amends Chapter 56, Water Code, by adding Subchapters
J and K, as follows:

  SUBCHAPTER J.  ALTERNATE PROCEDURE FOR ANNEXATION BY EXISTING DISTRICT

     Sec.  56.751.  PETITION FOR ANNEXATION.  Authorizes the
     landowners of a defined area of territory not included in a
     drainage district to file with the secretary of the governing
     body of the drainage district (board) a petition requesting
     the an election on the inclusion of the territory in a
     district.  Sets forth requirements of the petition.
     
     Sec.  56.752.  HEARING ON DETERMINATION OF PETITION.  (a)
     Requires the board to hear the petition to determine if it
     meets the requirements of Section 56.751.
     
     (b) Requires the board, by order, to set the time and place
       of the hearing on the petition.  Requires the hearing to be
       held not less than 30 days after the date of the order.
       
       Sec.  56.753.  NOTICE OF HEARING.  (a) Requires the secretary
     of the board to issue notice of the time and place of the
     hearing.  Requires the notice to describe the territory
     proposed to be annexed.
     
     (b) Requires the secretary to post copies of the notice in
       three public places in the drainage district and one copy in
       a public place in the territory proposed to be annexed. 
       Requires the notices to be posted for at least 15 days prior
       to the hearing.
       
       (c) Requires the notice to be published one time in a
       newspaper with general circulation in the county.  Requires
       the notice to be published at least 15 days prior to the
       hearing.
       
       
       Sec.  56.754.  ELECTIONS TO APPROVE ANNEXATION OF TERRITORY. 
     (a) Requires the board to order elections to approve
     annexation.
     
     (b) Requires annexation of a territory to be approved by a
       majority vote of the voters of a separate election held in
       the drainage district and by a majority vote of the voters
       at a separate election held in the territory proposed to be
       added.
       
       (c) Provides that if the drainage district has outstanding
       debts or taxes, the election to approve annexation also
       determines whether the territory to be added assumes its
       proportion of the debt or taxes if the territory is added to
       the district.
       
       Sec.  56.755.  NOTICE AND PROCEDURE OF ELECTION.  Provides
     that the election notice, the election, and the voter
     qualifications are governed by Chapter 58E.
     
     Sec.  56.756.  LIABILITY OF ADDED TERRITORY.  Requires the
     added territory to bear its pro rata part of all indebtedness
     or taxes that may be owed, contracted, or authorized by the
     drainage district to which it is added.
     
            SUBCHAPTER K.  CONSOLIDATION OF DISTRICTS

     Sec.  56.801.  PETITION.  Provides that consolidation is
     initiated by a petition requesting an election on the
     question.  Sets forth the number of registered voters residing
     in either drainage district proposed to be consolidated that
     are required to have signed the petition.  Requires the
     petition to be presented to the county commissioners court.
     
     Sec.  56.802.  ELECTION ORDER; NOTICE.  (a) Requires the
     county commissioners court to order the election and give
     notice of the election if the county commissioners court
     determines the petition meets the requirements of Section
     56.801.
     
     (b) Sets forth the statement required to be printed on the
       election ballot to permit voting for or against the
       proposition.
       
       Sec.  56.803.  CANVASS; RESULT.  (a) Requires the county
     commissioners court to canvass the election returns.  Requires
     the county commissioners to publish the results separately for
     each drainage district.
     
     (b) Requires the county commissioners to declare the
       drainage districts consolidated if the majority of the votes
       cast in each district favor the consolidation.
       
       Sec.  56.804.  TITLE TO PROPERTY; ASSUMPTION OF DEBT. 
     Provides that title to all property of the consolidating
     drainage districts vests in the consolidated district. 
     Provides that the consolidated district assumes and is liable
     for the outstanding indebtedness of the consolidating
     districts.
SECTION 17.    Amends Section 57.056, Water Code, as follows:

     Sec. 57.056.  COMPENSATION.  (a) Entitles a director of a
     levee improvement district to receive fees of office of not
     more than $100, rather than $50, a day per day spent
     performing the duties of a director.  Prohibits the fees of
     office from exceeding $500 in any one month, regardless of the
     number of days spent serving the district.
     
     (b) Authorizes a director to receive reimbursement of
       expenses incurred in service to the district.
       
       (c) Requires the director to file with the secretary a
       signed statement showing the number of days spent serving
       the district, expenses incurred, and a description of the
       duties performed during each day of service.
       
                   SECTION 18.     Amends Section 58.0879, Water Code, as follows:

     Sec.  58.079.  COMPENSATION OF DIRECTORS.  (a) Entitles a
     director of an irrigation district to receive compensation for
     office of not more than $100, rather than $25, a day per day
     spent performing his duties.  Prohibits the fees of office
     from exceeding $500, rather than $100, in any one month.
     
     (b) Authorizes a director to receive reimbursement of actual
       expenses incurred in service to the district.
       
       (c) Requires the director to file with the secretary a
       verified statement showing the number of days spent serving
       the district, expenses incurred, and a description of the
       duties performed during each day of service, before the
       director may receive compensation for services or
       reimbursement expenses.
       
       SECTION 19.  Amends Section 58.131(a), Water Code, to authorize
the board of directors of an irrigation district to set penalties
for the breach of any district rule in an amount not to exceed
$1,000, rather than $200, or imprisonment, or both.

SECTION 20.    Amends Section 58.360, Water Code, as follows:

     Sec.  58.360.  New heading: OPERATION AND MAINTENANCE TAX. 
     (a) Authorizes an irrigation district to levy and collect a
     tax for operation purposes, including funds for constructing
     and acquiring all necessary land, works, and equipment of the
     district.
SECTION 21.    Repealer: Section 57.063, Water Code (Compensation).

SECTION 22.    Effective date: September 1, 1995.

SECTION 23.    Emergency clause.