BILL ANALYSIS



H.B. 3186
By: Serna
4-10-95
Committee Report (Amended)


BACKGROUND
Municipal Utility Districts (MUDs) are created to control and
distribute storm, flood, and river water for irrigation, power, and
other useful purposes: reclamation and irrigation of arid land;
drainage; conservation and development of hydro-electric power;
conservation of forests; navigation; protection of the state's
water purity and sanitation; the disposal of wastes; the supplying
of water; alteration of land elevations; and the provision of
recreational facilities.  The legislature is given the authority to
create these districts in Article 16, Section 59 of the Texas
Constitution.  MUDs are governed by Chapters 50 and 54 of the Water
Code.


PURPOSE
To create a municipal utility district in El Paso County.


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.  Creates a conservation and reclamation district,
pursuant to the Constitution, in El Paso County, to be known as the
El Paso County Municipal Utility District No. 2; makes a
legislative declaration of necessity.

SECTION 2.  Provides a definition for "district."

SECTION 3.  Specifies the boundaries of the district.

SECTION 4.  Makes a legislative finding that the boundaries form a
closure; provides that any mistake made in the field notes does not
affect the powers of the district.

SECTION 5.  Makes a finding of public benefit to land and property
located in the district under powers conferred by the Constitution.

SECTION 6.  Grants the district powers conferred by general law to
MUDs created under the Constitution and, including Chapters 50 and
54, Water Code; states the Act prevails over general law
inconsistent with this Act; provides that the district is subject
to state supervision through the Texas Natural Resource
Conservation Commission.

SECTION 7.  Provides for a district board of five members;
temporary directors serve until initial directors are elected;
initial directors serve until permanent directors are elected;
permanent directors serve staggered four year terms; each director
must qualify to serve as provided by Chapter 54, Water Code; a
director serves until a successor has qualified.

SECTION 8.  Allows a person who owns land in the district to
petition the Texas Natural Resource Conservation District on or
after the effective date of this Act to appoint the five temporary
directors; the TNRCC shall appoint the directors listed in the
petition; a person appointed shall take the oath of office as soon
as practicable; if a person fails to qualify or a vacancy occurs
the TNRCC shall appoint an individual to fill the vacancy; after
all directors are qualified they shall elect officers from among
their membership.


SECTION 9.  Requires an election to be held to confirm the
establishment of the district and to elect five initial directors,
as provided by Chapter 54, Water Code; does not require that
Section 41.001(a), Election Code to apply to the confirmation
election.

SECTION 10.  Requires that on the first Saturday in May that occurs
in an even-numbered year after the date of the confirmation
election that an election be held to elect two directors who shall
serve two-year terms and three directors to serve four-year terms;
the board may postpone the election if the election occurs within
60 days after the date on which the requirements of law in order to
hold an election; that on the first Saturday in May of each even-numbered year following the first election the appropriate number
of directors shall be elected to the board.

SECTION 11.  Provides that proper notice of intention to introduce
has been given; provides that the TNRCC has filed its
recommendations as required.

SECTION  12.  Emergency clause.


EXPLANATION OF AMENDMENTS
COMMITTEE AMENDMENT NO. 1:
1.   Corrects the metes and bounds description of the district.
2.   (1) Provides that the powers, authority, functions, duties,
and outstanding bonded indebtedness of the district will be assumed
by a political subdivision which may annex the territory included
in Section 3 of this Act as provided for by Chapter 43, Local
Government Code;  (2) provides that any facilities to be
constructed or acquired by the district must have the plans and
specifications therefor approved by the El Paso Water Utilities
Public Service Board (PSB), which approval shall not be
unreasonably withheld or delayed;  grants PSB the right to either
inspect or to act as the construction manager for the district's
facilities to ensure that the facilities meet the applicable
standards of the PSB; provides that the PSB shall be paid a
reasonable fee by the district for such services consistent with
fees charged for similar services provided by the PSB on similar
utility construction contracts;  and (3) provides that this Act
shall not diminish or affect the City of El Paso's extraterritorial
jurisdiction or its rights under any applicable provisions of the
Texas Local Government Code.
3.   Amends Sections 7 and 8 to actually list the names of the
temporary directors to be appointed.
4.   Amends Section 9 to provide that, at the initial election, the
board may submit to the voters propositions to authorize issuance
of bonds, a maintenance tax, and a tax to make payments under a
contract.


SUMMARY OF COMMITTEE ACTION
H.B.3186 was considered by the committee in a public hearing on
April 10, 1995.
The following person testified in favor of the bill: 
     Mr. Jack Fickessen, representing Covington Capital.
The following persons testified against the bill: None (0).
The following persons testified on the bill: None (0).
The committee considered one (1) amendment to the bill.  The
amendment was adopted without objection.
The bill was reported favorably as amended, 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 6 ayes, 0 nays, 0
pnv, and 3 absent.