BILL ANALYSIS C.S.S.B. 1606 By: Wentworth Natural Resources 04-19-95 Committee Report (Substituted) BACKGROUND Municipal utility districts are conservation and reclamation districts created to supply water and wastewater service, control stormwater, irrigate land, provide parks and recreational facilities, and accomplish other goals within the district. These districts issue bonds to finance the necessary facilities. It is not uncommon for conservation or reclamation districts to be created legislatively. PURPOSE As proposed, C.S.S.B. 1606 creates Travis County Municipal District Nos. 3-9. 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, ADMINISTRATION, POWERS, DUTIES, OPERATION, AND FINANCING OF TRAVIS COUNTY MUNICIPAL DISTRICT NO. 3. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal District No. 3 (district) subject to approval under Subsection 9. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory included in the district. SUBSECTION 4. FINDINGS RELATING TO BOUNDARIES. Sets forth the findings of the legislature relating to the boundaries of the district. SUBSECTION 5. FINDING OF BENEFIT. Provides that all of the land and other property included in the boundaries of the district will be benefitted by the works and projects compiled by the district. Provides that the district is created to serve a public use and benefit. SUBSECTION 6. POWERS. (a) Provides that the district has all of the rights, powers, privileges, authority, functions, and duties (powers) provided under general law of this state. Provides that this Act prevails over any provision of general law that is conflicting or inconsistent with this Act. (b) Subjects the powers of the district to the continuing right of supervision of the state to be exercised by and through the commission. SUBSECTION 7. BOARD OF DIRECTORS. (a) Provides that the district is composed of a five-member board of directors (board). (b) Provides that temporary directors serve until initial permanent directors are elected under Subsection 9. (c) Provides that initial permanent directors serve until permanent directors are elected under Subsection 10. (d) Provides that permanent directors other than initial permanent directors serve staggered four-year terms. (e) Requires each director to qualify to serve as director in the manner provided by Sections 54.025 and 54.116, Water Code. (f) Provides that a director serves until the successor has qualified. SUBSECTION 8. TEMPORARY DIRECTORS. (a) Sets forth the composition of the temporary board. (b) Requires the qualified temporary directors to appoint a person to fill a vacancy if a temporary director fails to qualify for office. Requires the commission to appoint the necessary number of persons to fill vacancies on the board if there are less than three qualified temporary directors. SUBSECTION 9. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a) Requires the temporary board to call and hold an election to confirm establishment of the district and to elect five initial directors. (b) Provides that Section 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section. SUBSECTION 10. ELECTION OF DIRECTORS. Sets forth the election dates of the directors once they have started holding staggered terms. SUBSECTION 11. PROHIBITION AGAINST IMPAIRMENT OF DISTRICT. Prohibits a municipality, in whose extraterritorial jurisdiction (ETJ) the district lies, from passing any ordinances, resolutions, or any other actions which impair the ability of the district to exercise its powers or its ability to finance, construct, or operate its water, wastewater, or drainage systems. SUBSECTION 12. ANNEXATION. Prohibits the district from being annexed by a municipality in whose ETJ the district lies without an affirmative vote of a majority of the qualified voting electors at an election held by the district to consider a proposition for or against the annexation. SUBSECTION 13. REIMBURSEMENT TO LANDOWNER OR DEVELOPER, INSTALLATION OF FACILITIES. Requires a municipality, in whose ETJ the district is located annexes the district for the full or limited purpose and the annexation precludes the district's ability to issue bonds, to pay in cash to the landowner or developer of the district a sum equal to all costs and expenses incurred by the landowner or developer connected with the district that the district has, in writing, agreed to pay and that would have been eligible for reimbursement from bond proceeds under rules and requirements of the commission that exist on the annexation date. Requires the municipality to be required to install all necessary water, wastewater, and drainage facilities to serve full buildout of development within the district after the annexation. SECTION 2. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATION, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 4. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 4 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Create a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 3. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATION, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 5. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 5 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Create a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 4. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATION, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 6. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 6 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Creates a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 5. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATIONS, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 7. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 7 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Creates a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 6. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATIONS, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 8. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 8 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Creates a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 7. CREATION, ADMINISTRATION, POWERS, DUTIES, OPERATIONS, AND FINANCING OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 9. SUBSECTION 1. CREATION. (a) Creates Travis County Municipal Utility District No. 9 subject to approval at a confirmation election under Subsection 9 of this Act. 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 Article XVI, Section 59, Texas Constitution. SUBSECTION 2. DEFINITION. Defines "commission" and "district." SUBSECTION 3. BOUNDARIES. Sets forth the territory of the district. SUBSECTIONS 4 - 13. Creates a similar board with powers identical to the board created for district no. 3. Sets forth the composition of the temporary board. Establishes provisions for annexation of the district identical to those for district no. 3. SECTION 8. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) Provides that the proper and legal notice setting forth the substance of this Act has been published as provided by law. Provides that a notice of a copy of this Act has been furnished to the required people and entities according to the constitution and other laws of this state. (b) Provides that the Texas Natural Resource Conservation Commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and the speaker of the house of representatives within the required time. (c) Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 9. Emergency clause. Effective date: upon passage.