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.