BILL ANALYSIS C.S.S.B. 1700 By: Wentworth Natural Resources 05-12-95 Committee Report (Substituted) BACKGROUND Water authorities are created to control and distribute storm, flood, and river water for irrigation, power, and other useful purposes, including reclamation and irrigation of arid land; drainage; conservation and development of hydroelectric power; conservation of forests; navigation; protection of the state's water purity and sanitation; the supplying of water; alteration of land elevations; and the provision of recreational facilities. PURPOSE As proposed, C.S.S.B. 1700 creates a water district in Travis County. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Southwest Travis County Water District in SECTIONS 3.02(a), 3.07(a) and (b), 3.09(b), 3.10 of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. GENERAL PROVISIONS SECTION 1.01. CREATION. (a) Creates the Southwest Travis County Water District which is a conservation and reclamation district to be located in Travis County. Provides that a confirmation election is not necessary. Provides that the district is a governmental agency and a body politic and corporate. (b) Creates the district to accomplish the purpose of Section 59, Article XVI, Texas Constitution. SECTION 1.02. DEFINITIONS. Defines "board," "commission," "director," "disposal system," "district," "local government," "person," "pollution," "system," "treatment facility," "waste" and "water." ARTICLE 2. ADMINISTRATIVE PROVISIONS SECTION 2.01. BOARD. (a) Provides that the district's powers, rights, duties, and functions are exercised by a board of directors (board). (b) Sets forth the membership of the board. (c) Authorizes the lieutenant governor to reject the names on the list and request another list from the speaker of the house of representatives. SECTION 2.02. DIRECTOR ELIGIBILITY. Sets forth the eligibility criteria for a member of the board (director). SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES. Sets forth the terms of the directors. SECTION 2.04. QUALIFICATION OF DIRECTOR. Requires each director to qualify to serve as a director in a manner provided by Sections 51.078 and 51.079, Water Code. Requires the district to pay the premiums for each director's bond required under Section 51.079, Water Code. SECTION 2.05. MEETINGS AND ACTIONS OF THE BOARD. (a) Requires the board to adopt bylaws at its first meeting or as soon as practicable. (b) Requires the board to meet at least four times each year, and may meet at any other time provided in its bylaws. (c) Provides that a majority of directors constitutes a quorum for the transaction of business. Provides that a vote of majority present at a meeting at which a quorum is present is required for board action. SECTION 2.06. ORGANIZATION OF BOARD. (a) Sets forth the organization of the board. (b) Requires the directors to elect a person to fill a vacancy in a board office at the next meeting. (c) Requires the board to prescribe the powers and duties of each board office and procedures to remove a director from office. SECTION 2.07. INTEREST IN CONTRACT. Requires a director who is financially interested in a contract proposed to be executed by the district for the purchase of property or services or construction of facilities to disclose the interest to the board and may not vote on acceptance of the contract. SECTION 2.08. DIRECTOR'S COMPENSATION. Sets forth the amount of compensation for which a director is eligible. SECTION 2.09. GENERAL MANAGER. (a) Requires the board to employ a general manager for a term and salary set by the board. (b) Provides that the general manager (GM) is the chief executive officer of the district. Sets forth the duties for which the GM is responsible. (c) Authorizes the board to discharge the GM. SECTION 2.10. EMPLOYEES BONDS. (a) Requires the GM and each employee of the district who is charged with the collection, custody, or payment of any money of the district to execute a fidelity bond in an amount determined by the board and in a form and with surety approved by the board. (b) Requires the board to pay the premiums on the employees' bonds under this section. SECTION 2.11. PRINCIPAL OFFICE. Requires the district to maintain its principal office inside the district. SECTION 2.12. RECORDS. Sets forth the records the district is required to maintain. SECTION 2.13. SEAL. Requires the district to adopt a seal and may change the seal from time to time. SECTION 2.14. SUIT. Authorizes the district to sue and be sued in its corporate name. ARTICLE 3. POWERS AND DUTIES SECTION 3.01. GENERAL POWERS AND DUTIES. (a) Sets forth the duties of the district. (b) Provides that the creation of a local government or political subdivision in the district is prohibited unless approved by board resolution. Provides that annexation of district territory by a local government or political subdivision is prohibited unless approved by all owners of land to be annexed and by board resolution. Provides that all area within the district is removed and excluded from the extraterritorial jurisdiction of any local government or other political subdivision in the state. (c)-(d) Sets forth the powers of the district, subject to the Texas Natural Resource Conservation Commission's (commission) authority, regarding superseding the authority of any local government. (e) Provides that the district has all powers, rights, and privileges necessary and convenient for accomplishing the purposes of this Act that are conferred by general law upon any conservation and reclamation district created pursuant to Section 59, Article XVI, Texas Constitution. (f) Provides that the powers granted to the district in this Act are cumulative of all powers granted by other law. SECTION 3.02. DISTRICT RULES. (a) Requires the district to adopt and enforce rules reasonably required to implement this Act, including rules governing procedure and practice before the board. (b) Requires the district to print its rules and furnish copies of the rules to any person on written request. SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. Authorizes the district to enter public or private property in the district's territory for the purpose of inspecting and investigating conditions relating to its authorized purposes under the same provisions and restrictions applicable to the commission. SECTION 3.04. HEARING AND ORDER. (a) Sets forth the authorized actions of the board regarding hearings and order. SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) Provides that a person who violates a rule, permit, or order of the district is subject to a civil penalty of not less than $50 and not more than $1,000 for each violation or each day of continuing violation. (b) Authorizes the district to sue to recover the penalty in a district court in the county where the violation occurred. Requires the penalty to be paid to the district. (c) Authorizes the district to sue for injunctive relief in a district court in the county where a violation of its rule, permit, or order occurs or is threatened to occur. Authorizes the court to grant to the district a prohibitory or mandatory injunction that facts warrant. (d) Authorizes the district to sue for injunctive relief and a civil penalty in the same proceeding. (e) Provides that the commission is a necessary party to a suit brought under this section. SECTION 3.06. COURT REVIEW. (a) Authorizes a person who is adversely affected by a rule, act, or order of the district to sue the district in district court to set aside the rule, act or order. (b) Requires the suit to be filed not later than the 60th day after the date on which the rule, act or order takes effect. (c) Requires the court to order the person to pay the reasonable attorney's fees, expert witness fees, and other costs incurred by all opposing parties in defending this Act. SECTION 3.07. WATER QUALITY STANDARDS AND CRITERIA. (a) Requires the board to prescribe a water pollution control and abatement program for the district after public hearing. Requires the program to apply equally and uniformly throughout the district and be designed to achieve state water quality standards adopted by the commission and in effect on January 1, 1995. (b) Requires the district to submit the program to the commission for review and approval. Authorizes the commission, by rule, to provide criteria for the review and approval of the program, based on achieving state water quality standards adopted by the commission and in effect on January 1, 1995. (c) Requires the commission, if it finds that the proposed program will not achieve state water quality standards, to notify the district in writing of the specific objections not later than the 30th day after receipt of the proposed program. Authorizes the district to amend the proposed program in response to the commission's objections. Requires the commission to promptly notify the district in writing whether the commission approves the proposal as amended. (d) Sets forth the actions of the district if the commission does not notify the district that it objects to the proposed program. (e) Requires the commission to adopt and assess fees adequate to recover the costs of the commission in administering this section. SECTION 3.08. WATER, WASTEWATER, OR DRAINAGE CONTROL PLANS. (a) Requires the district to develop, prepare, and revise comprehensive water, wastewater, or drainage control plans for various areas of the district. Requires the plans to be consistent with state water quality standards adopted by the commission and in effect on January 1, 1995. (b) Provides that this Act does not authorize the district to develop, own, or operate a surface water dam or reservoir for potable water supply purposes or limit or supersede an existing water management plan, water right, or water supply or wastewater treatment facility of a river authority in existence on the effective date of this Act the territory of which comprises at least three counties and includes all or part of the district territory. (c) Requires the plans to comply with all requirements of the national flood insurance program as prescribed by Chapter 16I, Water Code. SECTION 3.09. REGULATION OF SOLID WASTE. (a) Provides that the district has the powers and duties relating to the regulation of solid waste granted to a local government under Chapters 361E and 364, Health and Safety Code. (b) Authorizes the district to adopt rules to implement the powers and duties authorized by this section. SECTION 3.10. SEPTIC TANKS. (a) Sets forth the authorized actions, by rule, if a district finds that the nature of the soil or drainage in the district requires regulation of septic tanks to prevent water pollution or to protect the public health. (b) Requires the board to consult with the commission and hold a public hearing in the area to be affected, before the board adopts a rule. SECTION 3.11. SUBDIVISIONS. (a) Provides that the district has the exclusive power and jurisdiction to approve a plat or replat required of a tract of land located within the district. Prohibits a plat or replat from being filed with the county clerk without the approval of both the district and the county with jurisdiction over the land. Provides that if a county regulation regarding the subdivision of land conflicts with a district regulation, the district regulation supersedes the county regulation. (b) Requires the district, subject to Subsection (a) of this section, and the county to approve a plat or replat that satisfies the requirements established by the commissioners court of the county under Section 232.003, Local Government Code. Requires the district and county to act on a plat or replat is filed. Sets forth the conditions in which a plat or replat is not approved after the 61st day after the date the plat or replat is filed. (c) Prohibits the district and a county from regulating certain property. SECTION 3.12. MUNICIPAL UTILITY DISTRICTS. (a) Requires the creation of a municipal utility district in the district to be regulated only by the commission. Provides that the consent of the district or any local government or other political subdivision in the state is not required to create a municipal utility district in the district. (b) Sets forth the items of which the district has exclusive authority to enforce, amend, or terminate the provisions of any agreement between or that applies to a municipal utility district located within the district and any local government or other political subdivision in the state. (c) Provides that the authority granted by Subsection (b) of this section supersedes the authority of any local government or other political subdivision in the state regarding the matters described by Subsection (b) of this section other than the authority of a county to enforce, amend, or terminate an agreement pertaining to landscape maintenance or a license agreement in the public rights-of-way. (d) Provides that the rules of the district in effect at the time a petition for creation of a municipal utility district is filed with the commission remain applicable to all land within the municipal utility district until all bonds issued by the municipal utility district have been paid. Prohibits the district or a local government or other political subdivision of the state from imposing a requirement or condition on the municipal utility district that may adversely affect the data, profiles, maps, plans and specifications, or land use used to determine the feasibility of the project or the financial feasibility or tax base of the district, unless the requirement or condition is made specifically to comply with state or federal law or applies only after the bonds issued by the district have been paid. Provides that any requirement or condition imposed on a municipal utility district in conflict with this section is void. SECTION 3.13. ACQUISITION, CONSTRUCTION, AND OPERATION OF SYSTEMS. Sets forth the authorized actions of the district. SECTION 3.14. SYSTEM CONTRACTS. (a) Authorizes the district to contract to receive and treat or dispose of water, wastewater, drainage, or wastes from any person in the district. (b) Sets forth the basis on which fees are to be set in a contract under this section. SECTION 3.15. SALE OF WATER OR BY-PRODUCT. Authorizes the district to store and sell water or a by-product from the district's operations. SECTION 3.16. PERMITS FROM COMMISSION. (a) Authorize the district to apply to the commission for a permit to appropriate water. (b) Authorizes the district to apply to the commission for a water storage or use permit to store and sell water under Section 3.13 of this Act. SECTION 3.17. EMINENT DOMAIN. (a) Authorizes the district to exercise the power of eminent domain under Chapter 21, Property Code, to acquire property of any kind in Travis County that is appropriate for the exercise of the district's functions and within the district or adjacent to the district. (b) Prohibits the district from exercising the power of eminent domain to acquire the property of a river authority in existence on the effective date of this Act the territory of which comprises at least three counties and includes all or part of the district territory. SECTION 3.18. RELOCATION OF FACILITIES. Requires the district, if the district requires any change for its own services, to pay the cost of any action to a railroad, highway, pipeline, electronic transmission or distribution, telegraph, or telephone line or conduit, pole, or facility so as to provide comparable replacement of any replaced facility, less the net salvage value. SECTION 3.19. USE OF PUBLIC EASEMENTS. (a) Authorizes the district to use any public easement in Travis County to accomplish its purpose, without the necessity of securing a franchise or other governmental agreement. Provides that the use is subject to the authority of a county to require the relocation of facilities, at the expense of the district, to permit the widening or straightening of a road. Requires the county to give the district 30 days' notice that relocation is required and specify the new location for the facilities along the right-of-way of the road. (b) Provides that Subsection (a) does not apply to an easement of a river authority in existence on the effective date of this Act the territory of which comprises at least three counties and includes all or part of the district territory. (c) Prohibits the district from changing, altering, or damaging a portion of the state highway or any county road without first obtaining the written consent of the Texas Department of Transportation (TxDOT) or the county, as applicable. Provides that the placement of a district facility in a state or county highway right-of-way is subject to regulation by TxDOT or a county, as applicable. SECTION 3.20. ACQUISITION AND DISPOSITION OF PROPERTY. (a) Authorizes the district to obtain and use property of any kind that is appropriate for the exercise of its functions. (b) Sets forth the required actions of the board prior to sale of its property. SECTION 3.21. FACILITIES. Authorizes the district to acquire or operate any facility necessary or convenient to the exercise of its powers, rights, duties, or functions. SECTION 3.22. CONTRACTS. (a) Authorizes the district to make contracts and execute instruments necessary or convenient to the exercise of its powers, rights and duties, or functions. Prohibits the district from entering into a contract with a term of greater than 50 years. (b) Provides that this section does not prohibit the district from purchasing surplus property from the U.S. through a negotiated contract without bids. (c) Requires an officer, agent, or employee of the district to disclose any potential conflict of interest before the board votes on the acceptance of a contract. (d) Provides that a contract between the district and a municipality need not be submitted to the municipality's electorate. SECTION 3.23. COOPERATIVE AGREEMENTS. Sets forth the conditions under which the district may into cooperative agreements with other local governments, state agencies, or agencies of the U.S. SECTION 3.24. COUNTY AUTHORITY. Provides that this Act does not affect a county's authority acting under an order or ordinance of the commissioners court of the county or by certain rules or regulations approved by the commissioners court of the county. ARTICLE 4. GENERAL FISCAL PROVISIONS SECTION 4.01. DISBURSEMENT OF MONEY. Authorizes the district to disburse money only by check, draft, order, or other instrument signed by the person or persons authorized in the board's bylaws or by board resolution. SECTION 4.02. FEES AND CHARGES. Authorizes the district to establish fees and charges not to exceed the amounts necessary to enable the district to fulfill the obligations imposed on it by this Act. SECTION 4.03. LOANS AND GRANTS. (a) Authorizes the district to borrow money and accept grants for its corporate purposes. (b) Sets forth the sources from whom the district may borrow money and accept grants. (c) Provides that information of the source, amount, and any restriction on expenditure of money the district accepts is public information. SECTION 4.04. FISCAL YEAR. Requires the board to establish the district's fiscal year. SECTION 4.05. INDEPENDENT AUDIT AND REPORT. (a) Requires the board to have an audit of the district's affairs for each fiscal year prepared by an independent certified public accountant of recognized integrity and ability. (b) Requires the district to keep at least one copy of the most recent audit at the district's principal office. (c) Requires the district to make a copy of the most recent audit available for inspection by an interested person during regular business hours. SECTION 4.06. DEPOSITORY BANKS. (a) Requires the board to designate one or more banks to serve as depository for the district's money. Requires the district to deposit all of its money in the designated depository bank or banks except for certain monies. (b) Requires the money to be secured in the manner provided by law for the security of state money to the extent that money in a depository bank or trustee bank is not invested or insured by the Federal Deposit Insurance Corporation. (c) Requires the board to publish notice at least once in a newspaper of general circulation in the district requesting applications from banks interested in serving as a depository. Sets forth the required contents of the notice. (d) Requires the board to consider the applications received and the management and condition of each bank that files an application. Sets forth the criteria for designation of a bank. (e) Authorizes the board to designate a bank or banks on such terms and conditions as the board considers prudent, if no application is received by the time stated in the notice. ARTICLE 5. BOND AND TAX PROVISIONS SECTION 5.01. REVENUE BONDS. Sets forth the required provisions of the bonds the district is authorized to issue. SECTION 5.02. REFUNDING BONDS. (a) Authorizes the district to issue refunding bonds to refund outstanding bonds and interest authorized by this Act. (b) Sets forth the authorized actions regarding the refunding bonds. (c) Provides that the provisions of this Act applicable to the district's issuances of other bonds, their security, their approval by the attorney general, and the remedies of the holders are applicable to refunding bonds. (d) Sets forth the registration requirements of refunding bonds. SECTION 5.03. APPROVAL AND REGISTRATION OF BONDS. Sets forth the conditions to which the attorney is required to approve the bonds and contracts. Requires the bonds to be registered by the comptroller on approval. SECTION 5.04. BOND ELECTION. Authorizes the district to issue bonds without an election. SECTION 5.05. AUTHORIZED INVESTMENTS. Provides that bonds and refunding bonds of the district are legal, eligible, and authorized investments for a public fund of the state, including the State Permanent School Fund, of a state agency. SECTION 5.06. AD VALOREM TAXATION. Prohibits the district from levying and collecting ad valorem taxes, unless authorized by the qualified voters in the district. ARTICLE 6. DISTRICT BOUNDARIES SECTION 6.01. DESCRIPTION OF BOUNDARIES. Sets forth the boundaries of the district. SECTION 6.02. FINDINGS RELATED TO BOUNDARIES. Sets forth the findings of the legislature relating to boundaries. SECTION 6.03. FINDING OF BENEFIT. Provides that all of the land and other property included within the boundaries of the district will be benefitted by the works and projects that are to be accomplished by the district under powers conferred by this Act. Provides that the district is created to serve a public use and benefit. SECTION 6.04. ADDITION OF TERRITORY. (a) Authorizes the district to annex additional territory in Hays County or Travis County. (b) Authorizes proceedings for the annexation of territory by the district to be initiated by a petition signed by owners of the land proposed to be annexed. Requires the petition to request that the board hold a public hearing on the matters set out in the petition. (c) Requires the board to hear and consider the petition and to annex the territory if the board determines that the land should be annexed. (d) Provides that the consent of a municipality or other governmental entity or political subdivision of the state is not required for any annexation of territory by the district. (e) Sets forth the limit of annexation by the district. ARTICLE 7. MISCELLANEOUS PROVISIONS SECTION 7.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Sets forth the findings regarding procedural requirements. SECTION 7.02. EXISTING COUNTIES, RIVER AUTHORITIES, AND UNDERGROUND CONSERVATION DISTRICTS. Provides that this Act does not impair, limit, supersede, or alter the powers, rights, privileges, duties, functions, or jurisdictions of a river authority in existence on the effective date of this Act the territory of which comprises at least three counties and includes all or part of the district, except that such river authority may not impose or apply any regulatory ordinance, rule, or regulation within the district without the agreement of the district. (b) Provides that this Act does not impair, limit, supersede, or alter the powers, rights, privileges, duties, functions, or jurisdiction of an underground water conservation district created under or governed by Chapter 52, Water Code, or a county in existence on the effective date of this Act the territory of which includes all or part of the district, except that such an underground water conservation district or county may not impose or apply without agreement of the district any regulatory ordinance, rule or regulation within the district that is inconsistent with the requirements of Section 3.01(c) or 3.07 of this Act or has not been adopted and approved by the board of directors of the underground water conservation district or commissioners court of the county, as applicable. SECTION 7.03. EXISTING SERVICE. Requires a local government to continue to provide water utility services or solid waste disposal on January 1, 1995, unless a contract exists that applies to a local government's provision of water utility services, then the local government's obligation to provide service is governed by the contract during the contract's term. SECTION 7.04. Severability clause. SECTION 7.05. Emergency clause. Effective date: upon passage.