BILL ANALYSIS


                                                        H.B. 3193
                                         By: Saunders (Wentworth)
                                                Natural Resources
                                                         05-19-95
                                Senate Committee Report (Amended)
BACKGROUND

Water authorities are created to control and distribute storm,
flood, and river water for irrigation, power; reclamation and
irrigation of arid land and drainage; conservation and development
of hydroelectric power; conservation of forests; protection of the
state's water purity and sanitation; and the provision of
recreational facilities.

PURPOSE

As proposed, H.B. 3193 provides for the creation, administration,
powers, duties, operation, and financing of the Southwest Travis
County Water District.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Travis County Water District in SECTIONS 3.02, 3.09(b), and
3.10 and to the Texas Natural Resource Conservation Commission in
SECTION 3.07(b) of this bill. 

SECTION BY SECTION ANALYSIS

                 ARTICLE 1. GENERAL PROVISIONS

SECTION 1.01.  CREATION. (a) Creates a conservation and reclamation
district, to be known as the Southwest Travis County Water District
(district) in Travis County. Provides that a confirmation election
is not necessary. Provides that the district is a governmental
agency and a body politic and corporate.

     (b) Provides that the district is created under and is
     essential to accomplish the purposes of Section 59, Article
     XVI, Texas Constitution.
     
     SECTION 1.02.  DEFINITIONS. Defines "board," "commission,"
"director," "disposal system," "district," "local government,"
"person," "pollution," "system," "treatment facility," "waste," and
"water."

              ARTICLE 2. ADMINISTRATIVE PROVISIONS

SECTION 2.01.  BOARD. (a) Provides that the district's powers,
rights, duties, and functions are exercised by a board of
directors.

     (b) Provides that the board consists of nine members appointed
     by the governor.
     
     SECTION 2.02.  DIRECTOR ELIGIBILITY. Requires a person to be a
resident of Travis County to be eligible for appointment as a
director. Provides that at least five of the directors to reside in
the district.

SECTION 2.03.  TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES. (a)
Provides that other than initial directors, directors are appointed
for staggered terms of six years with three members' terms expiring
September 1 of each odd-numbered year.

     (b) Requires appointment of initial directors to be made
     promptly after this Act takes effect. Requires the governor to
     appoint three initial directors to serve a term expiring
     September 1, 1997, three initial directors to serve a term
     expiring September 1, 1999, and three initial directors to
     serve a term expiring September 1, 2001.
     
     (c) Requires the governor to appoint a successor when a
     director's term expires.
     
     (d) Requires the governor to appoint a successor to serve for
     the unexpired term when a director dies, resigns, or is
     otherwise removed.
     
     SECTION 2.04.  QUALIFICATION OF DIRECTOR. Requires each director to
qualify to serve as director in the manner provided by Sections
51.078 and 51.079, Water Code. Requires the district to pay the
premiums for each director's bond required under Section 51.079,
Water Code.

SECTION 2.05.  MEETINGS AND ACTIONS OF THE BOARD. (a) Requires the
board to adopt bylaws at its first meeting or soon thereafter.

     (b) Requires the board to meet at least four times each year,
     and to meet at any other time provided in its bylaws.
     
     (c) Provides that a majority of the directors constitutes a
     quorum for the transaction of business. Provides that the vote
     of a majority of directors present at a meeting at which a
     quorum is present is required for board action.
     
     SECTION 2.06.  ORGANIZATION OF BOARD. (a) Requires the board to
elect from its members a chair, vice chair, secretary, and other
officers as necessary. Provides that a person elected to a board
office serves in that capacity for a period of two years or until
the person ceases to be a director, whichever occurs first.
Provides that an officer's period of service begins at a time
provided by the bylaws.

     (b) Requires the directors, if a vacancy occurs in a board
     office, to elect a person to fill the unexpired period of
     service at the next board meeting.
     
     (c) Sets forth provisions to be prescribed by the bylaws of
     the board.
     
     SECTION 2.07.  INTEREST IN CONTRACT. Provides that a director who
is financially interested in a contract proposed to be executed by
the district for the purchase of property or services or the
construction of facilities shall disclose the interest to the board
and may not vote on acceptance of the contract.

SECTION 2.08.  DIRECTOR'S COMPENSATION. (a) Entitles a director to
receive an allowance of $50 a day and reimbursement for actual and
necessary expenses incurred for each day the director attends a
meeting of the board; and for each day the board authorizes the
director to attend to district business.

     (b) Prohibits a director from receiving a per diem allowance
     for more than 20 days in a calendar year.
     
     SECTION 2.09.  GENERAL MANAGER. (a) Requires the board to employ a
general manager for a term and salary set by the board.

     (b) Provides that the general manager is the chief executive
     officer of the district. Sets forth provisions for which the
     general manager is responsible in accordance with policies 
     adopted by the board.
     
     (c) Authorizes the board to discharge the general manager.
     
     SECTION 2.10.  EMPLOYEES BONDS. (a) Requires the general manager
and each employee of the district who is charged with the
collection, custody, or payment of any money of the district to
execute a fidelity bond in an amount determined by the board and in
a form and with a surety approved by the board.

     (b) Requires the district to pay the premiums on the
     employees' bonds under this section.
     
     SECTION 2.11.  PRINCIPAL OFFICE. Requires the district to maintain
its principal office inside the district.

SECTION 2.12.  RECORDS. Sets forth provisions to be kept by the
district records. Requires the district to permit public inspection
of its records during regular business hours.

SECTION 2.13.  SEAL. Provides that the district shall adopt a seal
and may change the seal from time to time.

SECTION 2.14.  SUIT. Provides that the district may sue and be sued
in its corporate name.

                  ARTICLE 3. POWERS AND DUTIES

SECTION 3.01.  GENERAL POWERS AND DUTIES. (a) Sets forth
requirements for the district.

     (b) Provides that the creation of a local government or
     political subdivision in the district  is prohibited unless
     approved by board resolution. Provides that annexation of
     district territory by a local government or political
     subdivision is prohibited unless approved by all owners of
     land to be annexed and by board resolution. Provides that all
     area within the district is removed and excluded from the
     extraterritorial jurisdiction of any local government or other
     political subdivision in the state.
     
     (c) Sets forth provisions in which the district has exclusive
     authority in the district, superseding the authority of any
     local government, except a ground water conservation district
     in existence on the effective date of this Act.
     
     (d) Sets forth provisions in which the district has exclusive
     authority, superseding the authority of any local government,
     except a ground water conservation district in existence on
     the effective date of this Act.
     
     (e) Provides that, except as expressly limited by this Act,
     the district has all powers, rights, and privileges necessary
     and convenient for accomplishing the purposes of this Act that
     are conferred by general law upon any conservation and
     reclamation district created pursuant to Section 59, Article
     XVI, Texas Constitution.
     
     (f) Provides that the powers granted to the district in this
     Act are cumulative of all powers granted by other law.
     
     SECTION 3.02.  DISTRICT RULES. (a) Requires the district to adopt
and enforce rules required to implement this Act, including rules
governing procedure and practice before the board.

     (b) Requires the district to print its rules and furnish
     copies of the rules to any person on written request.
     
     SECTION 3.03.  INSPECTIONS AND INVESTIGATIONS. Authorizes the
district to enter public or private property in the district's
territory for the purposes of inspecting and investigation
conditions relating to its authorized purposes under the same
provisions and restrictions applicable to the Texas Natural
Resource Conservation Commission (commission).

SECTION 3.04.  HEARING AND ORDER. (a) Sets forth authorized actions
for the board. Sets forth requirements for an order of the board.

SECTION 3.05.  CIVIL PENALTY; INJUNCTION. (a) Subjects a person who
violates a rule, permit, or order of the district to a civil
penalty of not less than $50 and not more than $1,000 for each
violation or each day of a continuing violation.

     (b) Authorizes the district to sue to recover the penalty in
     a district court in the county where the violation occurred.
     Requires the penalty to be paid to the district.
     
     (c) Authorizes the district to sue for injunctive relief in a
     district court in the county where a violation of its rule,
     permit, or order occurs or is threatened to occur. Authorizes
     the court to grant to the district, without bond or other
     undertaking, a prohibitory or mandatory injunction that the
     facts warrant, including a temporary restraining order,
     temporary injunction, or permanent injunction.
     
     (d) Authorizes the district to sue for injunctive relief and
     a civil penalty in the same proceeding.
     
     (e) Provides that the commission is a necessary party to a
     suit brought under this section.
     
     SECTION 3.06.  COURT REVIEW. (a) Authorizes a person who is
adversely affected by a rule, act, or order of the district to sue
the district in district court to set aside the rule, act, or
order.

     (b) Requires the suit to be filed no later than 60 days after
     the date on which the rule, act, or order takes effect.
     
     (c) Requires the court, if a person challenges in court the
     validity of all or any portion of this Act and does not
     prevail in the challenge, to order the person to pay certain
     court costs.
     
     SECTION 3.07.  WATER QUALITY STANDARDS AND CRITERIA. (a) Requires
the board to prescribe a water pollution control and abatement
program for the district after public hearing. Sets forth
requirements for the program.

     (b) Requires the district to submit the program to the
     commission for review and approval. Authorizes the commission,
     by rule, to provide criteria for the review and approval of
     the program, based on achieving state water quality standards
     adopted by the commission and in effect on January 1, 1995.
     
     (c) Requires the commission, if the commission finds that the
     proposed program will not achieve state water quality
     standards, to notify the district in writing of the specific
     objections no later than 30 days after receipt of the proposed
     program. Authorizes the district to amend the proposed program
     in response to the commission's objections. Requires the
     commission, if the district amends the proposed program in
     response to the commission's objections, to notify the
     district whether the commission approves the proposal as
     amended.
     
     (d) Provides that if the commission does not notify the
     district that it objects to the proposed program as required
     by Subsection (c), shall become operative on the 31st day
     after the commission receives the proposed program. Provides
     that if the commission notifies the district as required by
     Subsection (c) that it finds the proposed program will not
     achieve state water quality standards, the program may not
     become operative until the date on which the commission
     approves the program.
     
     (e) Requires the commission to adopt and assess fees adequate
     to recover the costs of the commission in administering this
     section.
     
     SECTION 3.08.  WATER, WASTEWATER, OR DRAINAGE CONTROL PLANS. (a)
Requires the district to develop, prepare, and revise comprehensive
water, wastewater, or drainage control plans for various areas of
the district. Requires the plans to be consistent with state water
quality standards adopted by the commission and in effect on
January 1, 1995.

     (b) Provides that this Act does not give the district certain
     authorizations.
     
     (c) Requires the plans to comply with all requirements of the
     National Flood Insurance Program, as prescribed by Chapter
     16I, Water Code.
     
     SECTION 3.09.  REGULATION OF SOLID WASTE. (a) Provides that the
district has the powers and duties relating to the regulation of
solid waste granted to a local government under Chapters 361E and
364, Health and Safety Code.

     (b) Authorizes the district to adopt rules to implement the
     powers and duties authorized by this section.
     
     SECTION 3.10.  SEPTIC TANKS. (a) Sets forth provisions the district
is authorized, by rule, to implement if the district finds that the
nature of the soil or drainage in the district requires regulation
of septic tanks to prevent water pollution or to protect the public
health.

     (b) Requires the board, before adopting a rule under this
     section, to consult with the commission; and hold a public
     hearing in the area to be affected by the rule.
     
     SECTION 3.11.  SUBDIVISIONS. (a) Provides that the district has the
exclusive power and jurisdiction to approve a plat or replat
required of a tract of land located within the district. Prohibits
a plat or replat from being filed with the county clerk without the
approval of both the district and the county with jurisdiction over
the land.

     (b) Requires the district to approve a plat or replat that
     satisfies the requirements established by the commissioners
     court of the county under Section 232.003, Local Government
     Code. Requires the district to act on a plat or replat no
     later than 60 days after the plat or replat is filed. Provides
     that a plat or replat is approved unless before 61 days after
     the plat or replat is filed, the plat or replat is expressly
     disapproved; and a statement of the specific manner in which
     the plat or replat fails to satisfy all applicable regulations
     is given to the owner of the land included in the plat or
     replat.
     
     (c) Sets forth provisions the district is prohibited to
     regulate, with respect to land within the district.
     
     SECTION 3.12.  MUNICIPAL UTILITY DISTRICTS. (a) Requires the
creation of a municipal utility district in the district to be
regulated only by the commission. Provides that the consent of the
district or any local government or other political subdivision in
the state is not required to create a municipal utility district in
the district.

     (b) Sets forth items over which the district has exclusive
     authority to enforce, amend, or terminate the provisions of
     any agreement between or that applies to a municipal utility
     district located within the district and any local government
     or other political subdivision in the state.
     
     (c) Provides that the authority granted by Subsection (b) of
     this section supersedes the authority of any local government
     or other political subdivision in the state regarding the
     matters described by Subsection (b) of this section, other
     than the authority of a county to enforce, amend, or terminate
     an agreement pertaining to landscape maintenance or a license
     agreement in the public rights-of-way.
     
     (d) Provides that the rules of the district remain applicable
     to all land within the municipal utility district until all
     bonds issued by the municipal utility district have been paid.
     Provides that after a municipal utility district issues bonds
     for a project approved by the commission, the district or a
     local government or other political subdivision of the state
     may not impose a requirement or condition on the municipal
     utility district that may adversely affect the data, profiles,
     maps, plans and specifications, or land use used to determine
     the feasibility of the project or the financial feasibility or
     tax base of the municipal utility district, unless the
     requirement or condition is made specifically to comply with
     state or federal law or applies only after the bonds issued by
     the municipal utility district have been paid. Provides that
     any requirement or condition imposed on a municipal utility
     district in conflict with this section is void.
     
     SECTION 3.13.  ACQUISITION, CONSTRUCTION, AND OPERATION OF SYSTEMS.
Sets forth authorized actions for the district.

SECTION 3.14.  SYSTEM CONTRACTS. (a) Authorizes the district to
contract to receive and treat or dispose of water, wastewater,
drainage, or wastes from any person in the district.

     (b) Requires the district to set fees on a certain basis.
     
     SECTION 3.15.  SALE OF WATER OR BY-PRODUCT. Authorizes the district
to store and sell water; or a by-product from the district's
operations.

SECTION 3.16.  PERMITS FROM COMMISSION. (a) Authorizes the district
to apply to the commission for a permit to appropriate water.

     (b) Authorizes the district to apply to the commission for a
     water storage or use permit to store and sell water under
     Section 3.13 of this Act.
     
     SECTION 3.17.  EMINENT DOMAIN. (a) Authorizes the district to
exercise the power of eminent domain under Chapter 21, Property
Code, to acquire certain property in Travis County.

     (b) Prohibits the district from exercising the power of
     eminent domain to acquire the property of a river authority in
     existence on the effective date of this Act the territory of
     which comprises at least three counties and includes all or
     part of the district territory.
     
     SECTION 3.18.  RELOCATION OF FACILITIES. Requires the district, if
the district alters the construction of a railroad, highway,
pipeline, or an electric transmission or distribution, telegraph or
telephone line conduit, pole, or facility, to pay the costs of that
action so as to provide comparable replacement of any replaced
facility, less the replaced facility's net salvage value.

SECTION 3.19.  USE OF PUBLIC EASEMENTS. (a) Authorizes the district
to use any public roadway, street, alley, or easement in Travis
County to accomplish its purposes, without the necessity of
securing a franchise or other governmental agreement. Subjects the
use to the authority of a county to require the relocation of
facilities, at the expense of the district, to permit the widening
or straightening of a road. Requires the county to give the
district 30 days' notice that relocation is required and specify
the new location for the facilities along the right-of-way of the
road.

     (b) Provides that this section does not apply to an easement
     of a river authority in existence on the effective date of
     this Act the territory of which comprises at least three
     counties and includes all or part of the district territory.
     
     (c) Prohibits the district from changing, altering, or
     damaging a portion of the state highway system or any county
     road without first obtaining the written consent of the Texas
     Department of Transportation or a county, as applicable.
     
     SECTION 3.20.  ACQUISITION AND DISPOSITION OF PROPERTY. (a)
Authorizes the district to purchase, lease, acquire by gift,
maintain, use, or operate property of any kind that is appropriate
for the exercise of its functions.

     (b) Authorizes the board to sell to the highest bidder, at a
     public or private sale, or to exchange any property owned by
     the district that is not required to carry out the district's
     purposes. Requires the district, before conducting a public or
     a private sale of property, to give notice of its intent to
     sell the property by publishing notice once a week for two
     consecutive weeks in a newspaper of general circulation in the
     district.
     
     SECTION 3.21.  FACILITIES. Authorizes the district to acquire,
construct, extend, improve, maintain, reconstruct, use, or operate
any facility necessary or convenient to the exercise of its powers,
rights, duties, or functions.

SECTION 3.22.  CONTRACTS. (a) Authorizes the district to make
contracts and execute instruments necessary or convenient to the
exercise of its powers, rights, duties, or functions. Prohibits the
district from entering into a contract with a term greater than 50
years.

     (b) Provides that this section does not prohibit the district
     from purchasing surplus property from the U.S. through a
     negotiated contract without bids.
     
     (c) Requires an officer, agent, or employee of the district
     who is financially interested in a contract of the type
     described in Subsection (b) of this section to disclose the
     interest to the board before the board votes on the acceptance
     of the contract.
     
     (d) Provides that a contract between the district and a
     municipality need not be submitted to the municipality's
     electorate.
     
     SECTION 3.23.  COOPERATIVE AGREEMENTS. Sets forth provisions the
district is authorized to enter into cooperative agreements with
other local governments, state agencies, or agencies of the U.S.

SECTION 3.24.  COUNTY AUTHORITY. Provides that this Act does not
affect a county's authority acting under an order or ordinance of
the commissioners court of the county or by a rule or regulation
approved by the commissioners court of the county for certain
provisions.

              ARTICLE 4. GENERAL FISCAL PROVISIONS

SECTION 4.01.  DISBURSEMENT OF MONEY. Authorizes the district to
disburse money only by check, draft, order, or other instrument
signed by the person or persons authorized in the board's bylaws or
by board resolution.

SECTION 4.02.  FEES AND CHARGES. Authorizes the district to
establish fees and charges not to exceed the amounts necessary to
enable the district to fulfill the obligations imposed on it by
this Act.

SECTION 4.03.  LOANS AND GRANTS. (a) Authorizes the district to
borrow and accept grants for its corporate purposes.

     (b) Requires the money, to the extent that money in a
     depository bank or trustee bank is not invested or insured by
     the Federal Deposit Insurance Corporation, to be secured in
     the manner provided by law for the security of state money.
     
     (c) Requires the board, before designating a depository bank,
     to publish notice at least once in a newspaper of general
     circulation in the district requesting applications from banks
     interested in serving as a depository. Requires the notice to
     include the time and location of the board meeting at which
     the board proposes to designate a depository bank. Requires
     the board to prescribe the term of service of a depository
     bank.
     
     (d) Requires the board, at the time stated in the notice
     required by Subsection (c), to consider the applications
     received and the management and condition of each bank that
     files an application. Authorizes the board to designate as a
     depository the bank or banks that offer the most favorable
     terms and conditions for the handling of the district's money
     and that have property management and the ability to properly
     handle the district's money. Provides that membership of an
     officer or director of a bank on the board of the district
     does not disqualify the bank from being designated as a
     depository.
     
     (e) Authorizes the board, if no application is received by the
     time stated in the notice, to designate a bank or banks on
     such terms and conditions as the board considers prudent.
               ARTICLE 5. BOND AND TAX PROVISIONS

SECTION 5.01.  REVENUE BONDS. (a) Authorizes the district, for the
purpose of carrying out a power or authority conferred by this Act,
to issue bonds secured by a pledge of all or part of the revenues
accruing to the district from a source other than ad valorem taxes,
including money received from tolls, charges, the sale of water or
other products, and the provision of services.

     (b) Sets forth requirements for the district's bonds.
     
     (c) Authorizes the board to prescribe the form, denomination,
     and interest rate of bonds issued by the district, except that
     bonds must mature serially or otherwise not more than 50 years
     after their date. Authorizes the board to sell bonds at prices
     and under terms that the board determines to be the most
     advantageous available. Authorizes the district's bonds to be
     made redeemable before maturity at times and prices prescribed
     in the bonds. Authorizes the district's bonds to be secured by
     an indenture of trust with a corporate trustee.
     
     (d) Authorizes the district to issue bonds in more than one
     series as required for carrying out the purposes of this Act.
     Authorizes the district, in issuing bonds secured by the
     district's revenues, to reserve the right to issue additional
     bonds secured by the district's revenues that are on a parity
     with or are senior or subordinate to the bonds issued earlier.
     
     (e) Authorizes the resolution authorizing the bonds or the
     trust indenture securing the bonds to specify additional
     provisions that shall constitute a contract between the
     district and its bondholders. Authorizes the board to provide
     for additional bond provisions; and for a corporate trustee or
     receiver to take possession of the district's facilities if
     the district defaults.
SECTION 5.02.  REFUNDING BONDS. (a) Authorizes the district to
issue refunding bonds to refund outstanding bonds and interest
authorized by this Act.

     (b) Sets forth authorized provisions for refunding bonds.
     
     (c) Provides that the provisions of this Act applicable to the
     district's issuance of other bonds, their security, their
     approval by the attorney general, and the remedies of the
     holders are applicable to refunding bonds.
     
     (d) Requires refunding bonds to be registered by the
     comptroller of public accounts on surrender and cancellation
     of the bonds to be refunded. Authorizes the resolution
     authorizing the issuance of refunding bonds to provide that
     the bonds shall be sold and the resulting proceeds deposited
     in the bank where the bonds to be refunded are payable, in
     which case the refunding bonds may be issued in an amount
     sufficient to pay the principal and interest of the bonds to
     be refunded to their option or maturity date. Requires the
     comptroller of public accounts to register the refunding bonds
     without concurrent surrender and cancellation of the bonds to
     be refunded.
     
     SECTION 5.03.  APPROVAL AND REGISTRATION OF BONDS. Requires the
district, after the district authorizes any bonds, to submit the
bonds and the record relating to their issuance to the attorney
general for approval. Requires the district, if the bonds are
secured by a pledge of the proceeds of a contract between the
district and a municipality or other governmental agency,
authority, or district, to submit to the attorney general a copy of
the contract and the proceedings of the municipality or other
governmental agency, authority, or district authorizing the
contract. Requires the attorney general, if the attorney general
finds that the bonds have been authorized and the contracts have
been made in accordance with the constitution and laws of the
state, to approve the bonds and contracts. Requires the bonds, on
approval, to be registered by the comptroller of public accounts.

SECTION 5.04.  BOND ELECTION. Authorizes the district to issue
bonds without an election.

SECTION 5.05.  AUTHORIZED INVESTMENTS. Provides that bonds and
refunding bonds of the district are legal, eligible, and authorized
investments for a public fund of the state, including the State
Permanent School Fund, or a state agency.

SECTION 5.06.  AD VALOREM TAXATION. (a) Prohibits the district from
levying and collecting ad valorem taxes.

     (b) Authorizes the qualified voters in the district to
     authorize the district to levy and collect ad valorem taxes
     for the maintenance of the district and its improvements in an
     election called for that purpose.
     
                   ARTICLE 6. DISTRICT BOUNDARIES

SECTION 6.01.  DESCRIPTION OF BOUNDARIES. Sets forth the boundaries
of the district.

SECTION 6.02.  FINDINGS RELATED TO BOUNDARIES. Sets forth the
findings of the legislature in relation to boundaries.

SECTION 6.03.  FINDING OF BENEFIT. Provides that all of the land
and other property included within the boundaries of the district
will be benefitted by the works and projects that are to be
accomplished by the district under powers conferred by this Act.
Provides that the district is created to serve a public use and
benefit.

SECTION 6.04.  ADDITION OF TERRITORY. (a) Authorizes the district
to annex additional territory in Travis County that is located in
the Bear Creek, Slaughter Creek, or Williamson Creek watersheds;
and not located in the corporate limits of a municipality.

     (b) Authorizes proceedings for the annexation of territory by
     the owners of the land proposed to be annexed. Requires the
     petition to request that the board hold a public hearing on
     the matters set out in the petition.
     
     (c) Requires the board to hear and consider the petition and
     may annex the territory if the board determines that the land
     should be annexed.
     
     (d) Provides that the consent of a municipality or other
     governmental entity or political subdivision of the state is
     not required for any annexation of territory by the district.
     
     (e) Prohibits the district, in a calendar year, from annexing
     a total area greater than 10 percent of the area of the
     district territory on January 1 of that year plus any amount
     carried over to that year under this subsection, except that
     the district may not annex in a calendar year a total area
     greater than 30 percent of the area of the district territory
     as of January 1 of that year. Authorizes the district, if the
     district fails to annex in a calendar year the entire 10
     percent amount permitted under this subsection, to carry over
     the unused allocation for use in subsequent calendar years.
     Prohibits the district, for the calendar year 1995, from
     annexing a total area greater than 10 percent of the district
     territory on the effective date of this Act. Prohibits the
     district territory from exceeding 8,000 acres.
     
              ARTICLE 7. MISCELLANEOUS PROVISIONS
                                 
     SECTION 7.01.  FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a)
Provides that the proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this Act
has been published as provided by law and has been furnished to all
required entities.

     (b) Provides that the commission has filed its recommendations
     relating to this Act with the governor, lieutenant governor,
     and speaker of the house of representatives within the
     required time.
     
     (c) Provides that all requirements of the constitution and
     laws of this state and of the rules and procedures of the
     legislature with respect to the notice, introduction, and
     passage of this Act are fulfilled and accomplished.
     
     SECTION 7.02.  EXISTING COUNTIES, RIVER AUTHORITIES, AND
UNDERGROUND WATER CONSERVATION DISTRICTS. (a) Provides that this
Act does not impair, limit, supersede or alter the powers, rights,
privileges, duties, functions, or jurisdiction of a river authority
in existence on the effective date of this Act the territory of
which comprises at least three counties and includes all or part of
the district, except that such a river authority may not impose or
apply any regulatory ordinance, rule, or regulation within the
district without the agreement of the district.

     (b) Provides that this Act does not impair, limit, supersede,
     or alter the powers, rights, privileges, duties, functions, or
     jurisdiction of an underground water conservation district
     created under or governed by Chapter 52, Water Code, or a
     county in existence on the effective date of this Act, the
     territory of which includes all or part of the district,
     except that such an underground water conservation district or
     county may not impose or apply without agreement of the
     district certain regulatory ordinances, rules, or regulations
     within the district.
     
     SECTION 7.021.  Prohibits this Act from limiting, impairing,
superseding, or altering the powers, duties, rights, privileges,
functions, or jurisdiction of a groundwater conservation district
created under Section 59, Article XVI, Texas Constitution, in
existence on the effective date of this Act that is composed in
whole or in part of the territory of the district.

SECTION 7.03.  EXISTING SERVICE. Requires a local government
providing water, wastewater, drainage, or solid waste disposal
service to an area within the district on January 1, 1995, to
continue to provide the service to all applicants for the service
located within the local government's service area on January 1,
1995. Provides that if a contract exists, on January 1, 1995, that
applies to a local government's provision of water, wastewater,
drainage, or solid waste disposal service within the district, then
the local government's obligation to provide service is governed by
the contract during the contract's term.

SECTION 7.04.       Severability clause.

SECTION 7.05.       Emergency clause.
               Effective date: upon passage.