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.