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.