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.