BILL ANALYSIS H.B. 3187 By: Serna (Rosson) Natural Resources 05-19-95 Senate Committee Report (Unamended) BACKGROUND Municipal utility districts (MUDs) are created to control and distribute storm, flood, and river water for irrigation, power, and other 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; dispose of wastes; supply water; alter land elevations; and provide recreational facilities. The legislature is authorized to create MUDs in Article 16, Section 59 of the Texas Constitution. MUDs are governed by Chapters 50 and 54 of the Water Code. PURPOSE As proposed, H.B. 3187 creates the El Paso Municipal Utility District No. 1. 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. CREATION. (a) Creates a conservation and reclamation district to be known as the El Paso County Municipal Utility District No. 1 (district) in El Paso County, subject to approval at a confirmation election. Provides that the district is a governmental agency and a body politic and corporate. (b) Provides that this district is created under and is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. SECTION 2. DEFINITION. Defines "district." SECTION 3. BOUNDARIES. Sets forth the boundaries of the district. SECTION 4. FINDINGS RELATING TO BOUNDARIES. Sets forth findings of the legislature regarding boundaries of the district. SECTION 5. FINDING OF BENEFIT. Provides that all of the land and other property included in the district boundaries will be benefited by the works and projects of the district. Provides that the district is created to serve a public use and benefit. SECTION 6. POWERS. (a) Provides that the district has all the rights, powers, privileges, authority, functions, and duties (powers) provided by the general law of this state applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution. Provides that this Act prevails over any provision of general law that is in conflict or inconsistent with this Act. (b) Subjects the powers of the district to the continuing right of supervision of the state through the Texas Natural Resource Conservation Commission. (c) Provides that the powers, along with any outstanding bonded indebtedness of the district, will be assumed by a political subdivision which may annex the territory in SECTION 3 as provided for by Chapter 43, Local Government Code. (d) Requires any facilities to be constructed or acquired by the district to have the plans and specifications approved by the El Paso Water Utilities Public Service Board (board). Prohibits approval from being withheld or delayed. requires the board to have the right to inspect or act as the construction manager for the district's facilities to ensure that the facilities meet the applicable standards of the board. Requires the board to be paid a fee by the district for the services provide by the board on similar utility construction contracts. (e) Prohibits the Act from diminishing or affecting the City of El Paso's extraterritorial jurisdiction or its rights under applicable provisions of the Local Government Code. SECTION 7. BOARD OF DIRECTORS. (a) Provides that the district is governed by a five-member board of directors. (b) Requires temporary directors appointed by this Act to serve until permanent directors are elected. Requires the temporary directors to exercise the powers conferred upon the district until permanent directors are elected and qualified to hold office. SECTION 8. APPOINTMENT OF TEMPORARY OFFICERS. (a) Sets forth the persons to be appointed as temporary directors of the district. (b) Requires the temporary directors to take the oath of office and execute bonds to qualify for holding their offices as soon as possible. SECTION 9. CONFIRMATION AND INITIAL ELECTION. (a) Requires the temporary board of directors to call and hold an election to confirm establishment of the district and to elect five initial directors. Authorizes the board of directors, at the election, to submit to the voters propositions to authorize bond issuance, a maintenance tax, and a tax to make payments under a contract. (b) Provides that Section 41.001(a), Election Code, does not apply to an election held as provided by this section. SECTION 10. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. (a)-(c) Provide that all procedural requirements have been met. SECTION 11. Emergency clause. Effective date: upon passage.