BILL ANALYSIS



C.S.H.B. 2446
By: Coleman
4-10-95
Committee Report (Substituted)


BACKGROUND
Under current law, municipal utility districts cannot contract out
for police or fire protection.  
Municipal utility districts must rely on the law enforcement
agencies of the surrounding county or city, that are typically
overextended.  Due to this shortfall, routine neighborhood patrol
is a rare occurrence.  This bill would allow municipal utility
districts to asses a charge on citizens through the election
process, which would end the instability and inequalities of
volunteer funding.

PURPOSE
To allow municipal utility districts to assess a charge to the
citizens of the district in order to provide peace officers.  This
would allow these districts the same authority for law enforcement
that they presently have for fire protection.  

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.  Amends Section 54.210, Texas Water Code, to provide as
follows:

Sec. 54.210. (a) States that a district may employ its own peace
officers to make arrests within the district as necessary to
prevent or abate the commission of any offense against the rules of
the district or the laws of the state.
     (b) States that, subject to the requirements of Section
54.2101, a district may impose an additional monthly charge, not to
exceed $5, on each customer to pay for the provision of peace
officers under this section, and may increase the charge as
necessary.

SECTION 2. Amends Section 54.2101, Texas Water Code, to provide as
follows:

Sec. 54.2101. (a)  Before a district imposes a charge, an election
on the charge must be held in the district.  The charge cannot be
assessed unless a majority of qualified voters approve it.
     (b)  Notice of an election must be given as it is with an
election of directors.
     (c)  The election must be held at the same time and in same
manner as an election of directors.
     (d)  Ballots shall be printed to provide for voting for or
against the proposition:  "The assessment of a monthly charge to
pay for the provision of peace officers."
     (e)  After the initial assessment od a charge has been
approved by an election, the board of directors may subsequently
increase the amount of the charge without an election on the
increase.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE
(1)  The Introduced version of the bill provided that a district
may increase the charge each year by a percentage equal to the
percentage by which the consumer price index for that year exceeds
the consumer price index for the preceding year.  The Substituted
version simply provides that a district may increase the amount of
the charge "as necessary".

(2)  In the Introduced version, the election for imposing a charge
was to be conducted procedurally like confirmation and bond
elections.  In the Substitute, those elections are to be conducted
procedurally like elections of directors.

(3)  The Introduced version provided that the district may enforce
the collection of the imposed charges by the termination of other
district services or as provided by Section 54.209, Water Code, for
violation of district rules.  The Substitute deletes this language.

SUMMARY OF COMMITTEE ACTION
H.B.2446 was considered by the committee in a public hearing on
March 27, 1995.
No testimony was received.
The bill was referred to the Subcommittee on H.B.2446, a
subcommittee consisting of Representatives R. Lewis, Yost, and
Walker (Chair).

After being recalled from subcommittee, the bill was considered by
the committee in a public hearing on April 10, 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 7 
ayes, 0 nays, 0 pnv, 2 absent.