BILL ANALYSIS C.S.S.B. 740 By: Brown Natural Resources 04-18-95 Committee Report (Substituted) BACKGROUND Compliance with certain laws governing conservation and reclamation districts has become unnecessarily cumbersome and costly for the districts, especially regarding elections of district directors; the sale, transfer, exchange, or abandonment of surplus district property; and the construction of capital improvements. PURPOSE As proposed, C.S.S.B. 740 establishes guidelines for common elections between two or more conservation or reclamation districts, the removal of board members from governing boards, and the sale or exchange of surplus property. The bill also increases the compensation that directors of certain districts are authorized to receive for service to the district. 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. Amends Chapter 50B, Water Code, by adding Sections 50.0243 and 50.027, as follows: Sec. 50.0243. COMMON ELECTIONS. (a) Authorizes two or more conservation or reclamation districts to designate a common election office and common early and regular polling places to elect district directors, if the districts are located in the same county, substantially all of the property in the districts constitutes part of a single community development plan, and common water supply and wastewater systems serve the districts. (b)-(c) Set forth requirements for a common election office and polling places. (d) Authorizes certain districts to designate a common election officer and voting officials for commonly held elections. Sets forth requirements for the officer and officials. Sec. 50.027. REMOVAL OF MEMBERS OF GOVERNING BOARDS. (a) Authorizes a conservation or reclamation district's governing board to remove a board member under specific circumstances. Requires the board to provide written notice of the removal to the removed member. (b) Sets forth guidelines for the appeal and reinstatement of a removed board member. (c) Sets forth the circumstances under which a member's office becomes vacant. SECTION 2. Amends Chapter 50C, Water Code, by adding Section 50.065, as follows: Sec. 50.065. SALE OR EXCHANGE OF SURPLUS PROPERTY. (a) Defines "surplus property." (b) Authorizes a conservation or reclamation district to sell surplus property or exchange it for property needed by the district. (c) Authorizes a district to abandon surplus property acquired at no cost to the district or to release the property to the person, or the person's successors, who provided it. (d) Authorizes a district to transfer surplus property or to exchange it with another governmental subdivision. (e) Authorizes a district to transfer, abandon, or release small portions of surplus property included in boundary, surveying, or encroachment conflicts, or to exchange those portions with the abutting property owner. (f) Authorizes a district to publish advance notice of a private or public sale under Subsection (b) for a specific time period. (g) Requires a district to apply proceeds from a sale to outstanding district bonds secured by pledging tax revenues, if required by applicable bond resolutions. Authorizes a district to use proceeds for any purpose if the district has no outstanding bonds to which it must apply proceeds. (h) Provides that Section 272.001, Local Government Code, does not apply to the disposition of surplus property under Subsection (c), (d), or (e). Sec. 50.066. LABORATORY SERVICES. Authorizes a district to contract with any person to provide or receive laboratory services related to environmental health or drinking water testing. SECTION 3. Amends Section 50.107(a), Water Code, to provide that this section does not apply to bonds issued and approved by the Farmers Home Administration, the United States Department of Agriculture, or the Texas Water Development Board. SECTION 4. Amends Section 51.080, Water Code, as follows: Sec. 51.080. COMPENSATION OF DIRECTORS. (a) Entitles a director of a conservation or reclamation district to receive fees of office of not more than $100, instead of $50, a day per day spent performing the duties of the director. Prohibits the fees of office from exceeding $500, instead of $200, a month, regardless of the number of days spent serving the district that month. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Expands the required contents of the director's statement necessary for compensation or reimbursement. Makes conforming and nonsubstantive changes. SECTION 5. Amends Section 51.131(a), Water Code, to limit the fines which the board of directors (board) of a conservation or reclamation district is authorized to charge to $1,000, rather than $200. SECTION 6. Amends Section 51.360, Water Code, as follows: Sec. 51.360. New heading: OPERATION AND MAINTENANCE TAX. (a) Authorizes a water control and improvement district to levy and collect a tax for operation purposes, including funds for constructing and acquiring all necessary land, works, appliances, and equipment of the district. (b) Makes conforming changes. (c) Authorizes a district to use money from its tax revenue to reimburse, only after executive director approval, a property developer in the district or the developer's assigns for planning, construction, or acquisition of facilities. SECTION 7. Amends Section 53.070, Water Code, as follows: Sec. 53.070. SUPERVISOR'S COMPENSATION. Entitles a supervisor of a fresh water supply district to receive fees of office of not more than $100, instead of $50, per day for each day spent performing the duties of a supervisor. Prohibits the fees of office from exceeding $500 in any one month, regardless of the number of days spent serving the district during that month. (b) Authorizes a supervisor to receive reimbursement of expenses incurred in service to the district, with the board's approval. (c) Expands the required contents of the supervisor's statement, to be filed with the secretary, necessary for the compensation or reimbursement of expenses. SECTION 8. Amends Section 53.122(b), Water Code, to increase the fine limit the board of a fresh water supply district is authorized to charge. SECTION 9. Amends Section 54.114, Water Code, as follows: Sec. 54.114. FEES OF OFFICE. (a) Entitles a director of a municipal utility district to receive fees of office of not more than $100, rather than $50, per day for each day spent performing the duties of a director. Prohibits the fees of office from exceeding $500, rather than $200, in any one month, regardless of the number of days spent serving the district during that month. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Requires the director to file a signed statement with the secretary, showing the number of days spent serving the district, expenses incurred, and a description of the duties performed while serving the district. SECTION 10. Amends Section 54.209(a), Water Code, to raise the fine limit to $1,000, instead of $200, that the board of a municipal utility district is authorized to charge. SECTION 11. Amends Section 54.311, Water Code, as follows: (a)-(b) Make conforming changes. (c) Authorizes a municipal utility district to use tax revenue for any purpose, if the money is not needed for the purposes for which it was collected. (d) Makes conforming changes. SECTION 12. Amends Section 55.111, Water Code, as follows: Sec. 55.111. COMPENSATION OF DIRECTORS. (a) Entitles a director of a water improvement district to receive fees of office of not more than $100, instead of $50, per day for each day spent performing the duties of a director. Prohibits the fees of office from exceeding $500 in any one month, regardless of the number of days spent serving the district. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Requires the director to file a signed statement with the secretary. Expands the required contents of the statement. SECTION 13. Amends Section 55.252(a), Water Code, to increase the fine limit to $1,000, instead of $100, for violation of this subchapter. SECTION 14. Amends Section 56.067, Water Code, as follows: Sec. 56.067. DIRECTOR'S COMPENSATION. (a) Entitles the director of a drainage district to receive for services not more than $100, rather than $50, a day per day spent serving the district. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Requires the director to submit a signed statement to the commissioners court before accounts are approved. SECTION 15. Amends Section 57.056, Water Code, as follows: Sec. 57.056. COMPENSATION. (a) Entitles a director of a levee improvement district to receive fees of office of not more than $100, rather than $50, a day per day spent performing the duties of a director. Prohibits the fees of office from exceeding $500 in any one month, regardless of the number of days spent serving the district. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Requires the director to file with the secretary a signed statement showing the number of days spent serving the district, expenses incurred, and a description of the duties performed during each day of service. SECTION 16. Amends Section 58.079, Water Code, as follows: Sec. 58.079. COMPENSATION OF DIRECTORS. (a) Entitles a director of an irrigation district to receive fees of office of not more than $100, rather than $25, a day per day spent performing the duties of a director. Prohibits the fees of office from exceeding $500, rather than $100, in any one month. (b) Authorizes a director to receive reimbursement of expenses incurred in service to the district. (c) Requires the director to file with the secretary a verified statement showing the number of days spent serving the district, expenses incurred, and a description of the duties performed during each day of service, before the director may receive compensation for services or reimbursement for travel or other expenses. SECTION 17. Amends Section 58.131(a), Water Code, to authorize the board of directors of an irrigation district to set penalties for the breach of any district rule in an amount not to exceed $1,000, rather than $200, or imprisonment, or both. SECTION 18. Amends Section 58.360, Water Code, by amending the section heading and Subsection (a), as follows: Sec. 58.360. OPERATION AND MAINTENANCE TAX. (a) Authorizes an irrigation district to levy and collect a tax for operation purposes, including funds for constructing and acquiring all necessary land, works, and equipment of the district. SECTION 19. Repealer: Section 57.063, Water Code (Compensation). SECTION 20. Effective date: September 1, 1995. SECTION 21. Emergency clause.