JBM H.B. 2919 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 2919
By: Stiles
4-2-97
Committee Report (Amended)



BACKGROUND 

The Lower Neches Valley Authority (LNVA) was created in 1933 by the 43rd
Legislature. Its purpose was and still is to promote the delivery of a
dependable water supply and distribution system to serve the expanding
industrial, municipal and agricultural water requirements in the lower
Neches Basin. The LNVA has the power to construct, maintain and operate
facilities. With no authority to levy taxes and no funding appropriated,
the LNVA operates as a non-profit organization relying on the revenue
generated by the sale of water and services.  

Currently, a 55 member staff manages five pumping plants and 400 miles of
canals and associated structures operated by the LNVA. A nine member
Board, appointed by the Texas Water Development Board (TWDB) and confirmed
by the Senate following statutory membership requirements, is responsible
for setting LNVA policy and overseeing its operations. The LNVA is one of
only two river authorities appointed in this manner. Seventeen out of the
twenty-two river authorities in the state are appointed by the governor,
with approval by the Senate; two river authority boards are elected; and
one is appointed by the Commissioner's Court in its service area.  

In January 1996, the House Committee on Natural Resources was charged to
conduct an interim study to review the design, mission, and goals of the
LNVA. A subcommittee appointed to address this charge conducted a public
hearing on April 10, 1996. Changes to the LNVA contained in this bill are
the result of the subcommittee's recommendations. 


PURPOSE

To implement the recommendations of the Subcommittee on the Lower Neches
Valley Authority regarding appointment of the Board of Directors and the
mission of the LNVA to increase economic development efforts in its
service area. 

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 Section 3, Chapter 63, Acts of the 43rd Legislature, 1st
Called Session, 1933 (Article 8280-103, Vernon's Texas Civil Statutes), as
follows:  
 Sec. 3. Changes the appointment of the Board from the TWDB to the
governor; changes who can remove a director from majority vote of TWDB to
the governor; changes who a newly appointed director must file a bond
with, and get approval on, from TWDB to the secretary of state; requires
directors to employ a general manager. 

SECTION 2. Redesignates Section 13(one), Chapter 63, Acts of the 43rd
Legislature, 1st Called Session, 1933(Article 8280-103, Vernon's Texas
Civil Statutes) as Section 13A. 

SECTION 3. Amends Chapter 63, Acts of the 43rd Legislature, 1st Called
Session, 1933  (Articles 8280-103, Vernon's Texas Civil Statutes) by
adding Section 13B to provide as follows: 
 (a) Allows the district to sponsor or participate in economic development
programs within or outside the areas served by the district. 
 (b) Requires each program to be established by formal action of the
Board; requires the Board to establish goals of the program, impose
participation requirements on persons receiving benefits of the program,
provide necessary restrictions, procedures, and budget limits to ensure
that governmental purposes are achieved. 
 (c) Allows programs under this section to include grants or loans of
money, services or equipment to people engaged in economic development
activities. 
 (d) Allows the district to employ staff and expend resources to further
an economic development program, except that the district may not use
property tax revenue or general appropriation to further a program; allows
the district to apply for grants and receive monetary assistance from any
source to carry out an economic development program. 
 (e) Allows the district and any other public or private person to enter
into an agreement regarding an economic development program. 
 (f) Requires the district to adopt guidelines if it provides
scholarships, grants, loans, or financial assistance to a public
fire-fighting organization; sets out requirements for what the guidelines
must determine.  
 (g) Provides that a determination by the Board that a program is intended
and expected to carry out the program's purpose is conclusive for
satisfying this section. 
 (h) Defines economic development program for the purposes of this section.

SECTION 4. Finds that the economic development programs authorized by
additions to this Act to be a specific public purpose and governmental
function of the LNVA in accordance with Section 52-a, Article III, Texas
Constitution; and for assistance to public fire-fighting organizations,
Section 51-a-1, Article III, Texas Constitution. 

SECTION 5. Provides that the effective date for Section 1 does not affect
the entitlement of a director serving on the Board on May 1, 1997 to
continue to hold office for the remainder of the term; requires the
governor to appoint directors as vacancies occur after the effective date
of Section 1. 

SECTION 6. Effective date: September 1, 1997; except as provided by
Section 7. 

SECTION 7. Provides that amendments to Section 3, Chapter 63, Acts of the
43rd Legislature, 1st Called Session, 1933, take effect immediately. 

SECTION 8. Emergency clause.


EXPLANATION OF AMENDMENTS

Committee amendment #1: In Section 3 of the bill, proposed Subsection
13B(a) of Chapter 63, Acts of the 43rd Legislature, 1st Called Session,
1933, is amended  to clarify that the district may sponsor and participate
in an economic development program only within the areas served by the
district, except that the program may be outside the areas served by the
district if the district has entered into an interlocal agreement with an
entity under Subsection (c) of this Section 3 of the bill.