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.