JWB H.B. 2258 75(R)BILL ANALYSIS WAYS & MEANS H.B. 2258 By: Culberson 3-25-97 Committee Report (Unamended) BACKGROUND Subchapter C, Chapter 53, Water Code (Administrative Provisions), provides for administrative provisions for fresh water supply districts. Under current law, special taxing units, such as improvement districts, can be created that may include portions of existing freshwater or other types of districts. PURPOSE This bill requires notice to and approval of the residents of existing freshwater districts and other types of taxing units before a new tax can be imposed. 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. Subchapter C, Chapter 53, Water Code, is amended by adding Section 53.089 APPROVAL OF CERTAIN ACTIONS. (a) A political subdivision that seeks to impose a tax or fee on persons living in any part of a freshwater supply district shall inform the board of the freshwater supply district, in writing, of the political subdivision's intention. (b) The board, on receipt of the notice, shall conduct an election on the issue of whether the tax or fee may be imposed in the district. (c) The ballot proposition for an election must be printed to permit voting for or against the imposition of the tax or fee by the political subdivision. (d) If a majority of voters in the freshwater supply district voting at the election approve the proposition, the tax or fee may be imposed. If a majority of voters voting at the election disapprove the proposition, the tax or fee may not be imposed. (e) The provisions of this section also apply to districts established or operating under this title (General Law Districts). SECTION 2. Effective date: September 1, 1997. The act only applies to taxes imposed after the effective date. SECTION 3. Emergency clause.