BILL ANALYSIS



H.B. 2642
By: Counts
3-20-95
Committee Report (Unamended)


BACKGROUND
The Canadian River Municipal Water Authority (CRMWA) provides water
from Lake Meredith to eleven member cities: Amarillo, Borger,
Lamesa, Littlefield, Lubbock, O'Donnell, Pampa, Plainview, Slaton,
Brownfield, and Tahoka.  The quality of water available from Lake
Meredith is poor, due largely to the high salt content from
groundwater discharges of salt water to the Canadian River in New
Mexico.  The U.S. Bureau of Reclamation has begun a desalinization
project to remedy this problem, with costs shared between the
federal government, the State, and the CRMWA.

CRMWA was preparing to enter contracts with its member cities and
issue revenue bonds to finance its portion of project costs when a
Travis County District Court in an unrelated case, In Re: Lavaca-Navidad River Authority, ruled that a city charter provision
requiring an election to validate water supply contracts might be
effective, in spite of provisions in the Interlocal Cooperation Act
which had previously been considered to authorize such contracts
without elections.  Because work on the desalinization project has
already begun, CRMWA needs to enter contracts and issue revenue
bonds without waiting on the outcome of appeals of the Lavaca-Navidad River Authority case or delaying the process to hold
elections in the two cities that are subject to such charter
provisions.

PURPOSE
To authorize CRMWA and its member cities to enter contracts for
water supply and related purposes without the necessity of an
election to approve the contract.  This would place all cities on
equal footing in the contract process.

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 13 of CRMWA enabling legislation
(Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953),
to allow contracts between CRMWA and its member cities by action of
their respective governing bodies; and provides that no other local
provision, ordinance, or law in conflict with the contract will
invalidate or impair the enforceability and validity of a contract
entered into by the CRMWA with any member or other city pursuant to
the powers, rights, and privileges or functions of the CRMWA.

Section 2.  Preserves remainder of the act if a portion is
determined to be invalid.

Section 3.  Emergency clause.


SUMMARY OF COMMITTEE ACTION
H.B.2642 was considered by the committee in a public hearing on
March 20, 1995.

The following person testified in favor of the bill: 
     Mr. John C. Williams, representing the Canadian River
Municipal Water Authority.
The following persons testified against the bill: None (0).
The following persons testified on the bill: None (0).

The bill was reported favorably without amendment, 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.