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.