BILL ANALYSIS


                                                        S.B. 1645
                                                   By: Barrientos
                                                            Water
                                                         04-28-95
                                     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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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.