BILL ANALYSIS S.B. 1645 By: Barrientos / Wentworth (Krusee / Combs) May 11, 1995 Committee Report (Unamended) BACKGROUND Section 51.748 of the Texas Water Code authorizes a water control and improvement district that does not have any outstanding indebtedness secured by taxes or net revenues to divide into two or more districts under the procedures set forth in Sections 51.749-51.758 of the Water Code. The Attorney General's Office has taken the position that this authority to divide may only be exercised one time, and that a district which has divided once may not be divided again. This interpretation might cause a district and its landowners to incur unnecessary administrative expenses, and may remove the opportunity for the district to be divided in an orderly, sequential, and cost-effective manner over time as development occurs. For example, Williamson-Travis Counties Water Control and Improvement District No. 1 was created by the legislature in 1990 and originally contained over 1300 acres. In 1994, the district was divided into two districts, one containing approximately 300 acres and one containing approximately 1000 acres. The owner of the land always intended to further divide the districts as development occurred, but the attorney's general's interpretation of Section 51.748 of the Water Code will not allow this. PURPOSE As proposed, S.B. 1645 provides for the division of an original water control and improvement district with no outstanding indebtedness. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 51.748, Texas Water Code, as follows: (a) Created from existing text. (b) Sets forth districts that may divide into two or more districts as provided by Section 51.749 through 51.758 of this code; provided, however, no division shall occur that would result in the creation of a district of less than 100 acres in size. Authorizes the board of directors of a water control and improvement district to consider a proposal to divide the district. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION S.B. 1645 was considered by the committee in a formal meeting on May 11, 1995. No testimony was received. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 6 ayes, 0 nays, 0 pnv, 3 absent.