SRC-CDH H.B. 2689 75(R)    BILL ANALYSIS


Senate Research CenterH.B. 2689
By: Cook (Lucio)
Natural Resources
5-5-97
Engrossed


DIGEST 

Currently, Texas law regarding certain water districts does not provide a
means by which districts can change the 12-month period for which they
estimate the expenses of maintaining and operating their irrigation system
for the purposes of making assessments against water users.  Water
districts engaged in the delivery of irrigation water around the state are
finding that changes in the 12-month period used in estimating maintenance
and operations expenses are necessary for the sake of consistency and
other reasons.  H.B. 2689 provides a method by which the board of a water
district may change this period by first going through a short transition
period, so as to allow it to change to a different 12-month period which,
thereafter, would be used in making its estimates and assessments against
water users.   

In addition, some districts are incurring difficulty in collecting flat
rate assessments because existing law only allows the collection of 10
percent interest and 10 percent collection fees when collected in a legal
proceeding.  As a result of these provisions, often by the time a district
goes through a legal proceeding, it actually receives much less than the
original assessment.  The current statutes are also unclear as to when
assessments become delinquent.  This bill provides that assessments become
delinquent the first of the month following the date payment is due.  It
also increases the interest on past due assessments from 10 percent to up
to 15 percent and adds a new penalty provision which is similar to ad
valorem taxation of 15 percent.   

PURPOSE

As proposed, H.B. 2689 provides for estimates of, and delinquent
assessments for, maintenance and operating expenses in certain water
districts.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 51.304, 51.310, 51.313, Water Code, as follows:

Sec. 51.304.  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING EXPENSES.
Authorizes the board of directors of a water control and improvement
district to change the 12-month period for which it estimates the expenses
of maintaining and operating the irrigation system by estimating such
expenses for a shorter period so as to adjust to a new fixed date and
thereafter estimating the expenses for 12-month periods following the
adjusted fixed date.   

Sec. 51.310.  LIST OF DELINQUENT ASSESSMENTS.  Requires assessments not
paid to become delinquent on the first day of the month following the date
payment is due.  Deletes text requiring the board to make a public posting
of certain information within 10 days after any assessment.   

Sec. 51.313.  INTEREST AND COLLECTION FEES.  Requires assessments not paid
by the first day of the month following the date payment is due to become
delinquent, and a penalty of up to 15 percent of the amount of the
past-due assessment to be added to the amount due.  Sets forth
requirements applicable if a suit is filed to foreclose a lien on crops or
if a delinquent assessment is collected by an attorney before or after
suit.  Makes conforming changes. 

SECTION 2. Amends Sections 55.352, 55.360, 55.363, Water Code, as follows:

Sec. 55.352.  New heading:  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING
EXPENSES.  Authorizes the board of directors of a water improvement
district to change the 12-month period for which it estimates the expenses
of maintaining and operating the irrigation system by estimating such
expenses for a shorter period so as to adjust to a new fixed date and
thereafter estimating the expenses for 12-month periods following the
adjusted fixed date. 

Sec. 55.360.  LIST OF DELINQUENT ASSESSMENTS. Makes conforming changes.

Sec. 55.363.  INTEREST AND COLLECTION FEES.  Requires assessments to bear
interest at the rate of 15 percent, rather than 10 percent, per year.
Makes conforming changes. 
 
SECTION 3. Amends Sections 58.304, 58.310, 58.313, Water Code, as follows:

Sec. 58.304.  New heading: BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING
EXPENSES.  Authorizes the board of directors of an irrigation district to
change the 12-month period for which it estimates the expenses of
maintaining and operating the irrigation system by estimating such
expenses for a shorter period so as to adjust to a new fixed date and
thereafter estimating the expenses for 12-month periods following the
adjusted fixed date. 

Sec. 58.310.  LIST OF DELINQUENT ASSESSMENTS.  Makes conforming changes.

Sec. 58.313.  INTEREST AND COLLECTION FEES.  Makes conforming changes.

SECTION 4. Emergency clause.
  Effective date: upon passage.