JBM H.B. 2689 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 2689
By: Cook
4-2-97
Committee Report (Unamended)



BACKGROUND 

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. 

This bill 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 other words, if a district currently estimates its maintenance and
operating expenses on a June 1 to June 1 basis, it could change to a
calender year basis by estimating its expenses and making assessments for
the period of June 1 to December 31 and, thereafter, estimate its
operating expenses on the calendar year 12-month basis. 

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. Also, the current statutes are 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 15 percent and adds a new penalty
provision which is similar to ad valorem taxation of 15 percent. 

PURPOSE

To provide a means by which the boards of certain water districts can
adjust the 12-month period that they use for estimating maintenance and
operation expenses. This bill also increases the interest on past due
assessments from 10 percent to 15 percent and adds a new penalty of 15
percent on the unpaid assessment, penalty, and interest. 

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. 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 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 title: 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 title: 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.