JBM H.B. 3549 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 3549
By: Lewis, Ron
4-16-97
Committee Report (Amended)



BACKGROUND 

This bill will create a conservation and reclamation district in southern
Newton County and northern Orange County in the state of Texas.  The area
is served currently with water service by the South Newton Water Supply
Corporation. However, public sanitary sewer service is not available, and
all sewer systems are private on-site systems.  Further, Newton County,
Texas, was designated by the Texas Water Development Board (TWDB) as
qualifying for assistance in financing waterworks and wastewater
improvements under the TWDB's Economically Distressed Area Program.   

The Board of Directors of the South Newton Water Supply Corporation
together with an advisory board decided to create a governmental entity to
provide for improved water and a wastewater collection system.  In order
to accomplish this, the group plans to use financing available through the
TWDB.   

Conversion of the South Newton Water Supply Corporation to the South
Newton Special Utility District is provided for in accordance with Chapter
65 of the Texas Water Code, which contemplates the conversion of
member-owned water supply corporations to special utility districts.  The
South Newton Water Supply Corporation currently holds a certificate of
convenience and necessity issued by the Texas Natural Resource
Conservation Commission (TNRCC) for provision of water service only. 

PURPOSE

To create a conservation and reclamation district to be known as the South
Newton Special Utility District.  The District will be subject to voter
approval at a confirmation election as specified in the bill.  

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.  Creates the South Newton Special Utility District as a
conservation and reclamation district in accordance with Article XVI,
Section 59, Texas Constitution. 

SECTION 2.  Defines "district" for purposes of the Act.

SECTION 3.  Establishes the boundaries of the District; provides that they
do not overlap with any other governmental entities providing water or
sewer services and do not enter the extraterritorial jurisdiction of any
city. 

SECTION 4.  Establishes that the boundaries are to form a closure.

SECTION 5.  Establishes that the land and property within the boundaries
of the proposed district will be benefited by its proposed expansion of
water and construction of sanitary sewer  service system and as such serve
a public use and benefit. 

SECTION 6.  Provides that the district would have the powers conferred on
special utility districts under Chapter 49 of the Water Code and under
Chapter 65, which allows the utility district to operate as a non-taxing,
revenue-only district.  The operations of the district would be under the
continuing supervision of the TNRCC. 

SECTION 7.  Provides that the district would be governed by a board of
seven directors, five of the members to be residents of Newton County and
two to be residents of Orange County.  This would be amended as necessary
to comply with federal law to meet popular requirements. 

SECTION 8.  Provides that the initial directors serve until permanent
directors are appointed; permanent directors are to serve staggered four
year terms. 

SECTION 9.  Provides that the temporary directors are comprised of three
current Board members, three members of the Advisory Board and a resident
from Orange County who has not previously served as either a Board member
of the South Newton Water Supply Corporation or the Advisory Board. 

SECTION 10. Establishes that the temporary board will call and hold
confirmation elections and elect seven directors. 

SECTION 11.  Establishes that, on the first Saturday in May of the first
even numbered year following a confirmation election, an election will be
held for board of directors members; four shall serve two-year terms and
three shall serve four-year terms; on the same date in subsequent years,
the appropriate number of members shall be elected. 

SECTION 12.  Establishes that, as a special utility district, the South
Newton Special Utility District shall issue bonds and pay for them through
collection of ad valorem taxes and revenues as authorized by Chapter 65 of
the Water Code; the District is also granted additional powers as may be
necessary and beneficial for providing potable water and treating
wastewater within the district. 

SECTION 13.  Provides that the facilities of the district shall be those
as are necessary to be designed and constructed for the enhancement of the
water supply system of the current Water Supply Corporation and to allow
for the collection, treatment and disposal of sewage, including solid
waste; the District will have to hold public hearings on the adoption of
standards for facilities within the district and will have to give notice
of the hearings to the TNRCC; all district standard specifications shall
be filed with the Commission. 

SECTION 14.  Provides that the District is authorized to acquire any
existing water, sewer or other systems inside or outside the boundaries of
the district. 

SECTION 15.  Establishes that all procedural requirements have been met.

SECTION 16.  Emergency clause.


EXPLANATION OF AMENDMENTS

Committee Amendment #1:  In Section 12, the amendment strikes the words
"ad valorem taxes and" on page 7, line 6, between the words "through" on
line 5 and "revenues" on line 6.