BLS C.S.H.B. 3567 75(R)BILL ANALYSIS NATURAL RESOURCES C.S.H.B. 3567 By: Raymond 5-5-97 Committee Report (Substituted) BACKGROUND Duval County is a rural county with an economy largely based on agriculture and ranching; however, the municipalities in Duval County are experiencing some urban growth. As municipalities grow, they naturally, want to gain greater autonomy from their counties. The Duval County Conservation and Reclamation District (hereinafter "the District") serves two of the three municipalities, and nearly all of the county's rural area. The exception is the area served by the Freer Water Control and Improvement District which includes the city of Freer and an area extending from the center of town three miles to the north and approximately one mile in each other direction. PURPOSE To establish disannexation procedures for San Diego and Benavides and guarantees rural areas representation on the District's governing board. 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 1, Chapter 398, Acts of the 51st Legislature, Regular Session, 1949, by amending the boundaries of the District to include that part of Jim Wells County within the corporate limits of the City of San Diego. SECTION 2. Amends Section 3, Chapter 398, Acts of the 51st Legislature, Regular Session, 1949, as follows: (b) Increases the number of directors from four to seven; requires that they be elected using the place system, and that directors elected to place 1, 2, or 3 must be residents of San Diego and elected by the qualified voters of the District who are residents of San Diego and its extraterritorial jurisdiction. Requires that directors elected to place 4 or 5 must be a resident of Benavides and elected by the qualified voters of the District who are residents of Benavides and its extraterritorial jurisdiction. Also requires that a director elected to place 6 or 7 must be a resident of, and is elected by the qualified voters of the District who are residents of, the part of Duval County that is not within: (1) the corporate limits or extraterritorial jurisdiction of: (A) San Diego; or (B) Benavides; or (2) the Freer Water Control and Improvement District. (d) Requires that an election be held on the first Tuesday in May of each even-numbered year and the directors elected shall each serve for a term of four years. (e) Establishes that if either San Diego or Benavides and the area within its extraterritorial jurisdiction disannex under Section 4A of this Act, a person on the board who represents San Diego or its extraterritorial jurisdiction or Benavides and the area within its extraterritorial jurisdiction ceases to be a director on the date disannexation takes effect. Also requires that the remaining directors as soon as possible shall call a special election to elect the appropriate number of directors to fill the unexpired terms if the disannexation results in vacancies on the board. (f) Establishes that if both San Diego and Benavides and the area within their extraterritorial jurisdictions disannex under Section 4A of this Act, a director for each place on the board must be a resident of the part of Duval County that is not within: (1) the corporate limits of extraterritorial jurisdiction of: (A) San Diego; or (B) Benavides; or (2) the Freer Water Control and Improvement District. (g) Requires that if San Diego and its extraterritorial jurisdiction disannex under Section 4A of this Act, the number of board places is reduced to four. (h) Establishes that if Benavides and the area within the extraterritorial jurisdiction disannex under Section 4A of the Act: (1) a director for place 4 must be a resident of San Diego or its extraterritorial jurisdiction if San Diego and the area within its extraterritorial jurisdiction have not previously disannexed; and (2) a director for place 5, or for place 4 or place 5 if San Diego and the are within its extraterritorial jurisdiction have previously disannexed, must be a resident of the part of Duval County that is not within: (A) the corporate limits or extraterritorial jurisdiction of: (i) San Diego; or (ii) Benavides; or (B) the Freer Water Control and Improvement District. SECTION 3. Amends Chapter 398, Acts of the 51st Legislature, Regular Session, 1949, by adding Sections 4A and 4B to provide as follows: Sec. 4A. (a) Establishes that a municipality within the District and the areas within the extraterritorial jurisdiction of that municipality may be disannexed from the District of petition for an election on disannexation and a majority vote in favor of disannexation at the election. Requires that a petition for an election to disannex be signed by at least 250 qualified voters of the District who are residents of the municipality or it extraterritorial jurisdiction or a number of qualified voters equal to fiver percent of the total vote cast in the municipality and its extraterritorial jurisdiction in the most recent District election, whichever number is less. The petition must also state that its purpose is to call an election to determine whether the affected municipality and its extraterritorial jurisdiction should be disannexed from the District, and include each petitioner's signature, printed name, address, voting precinct, and voter certificate number and the date on which the petitioner signed. (b) Requires that a petition must be filed with the District manager and that not later than the 30th day after the date on which the petition is filed, the District manager shall verify the validity of the petition and determine whether the number of signatures required for the calling of an election have been included. if the District manager certifies the petition to be valid, the board of directors of the District shall call an election for the purpose of disannexation not later than the 90th day after the date on which the manager certifies the sufficiency of the petition. Only qualified voters who reside within the corporate limits or extraterritorial jurisdiction of the municipality to be disannexed may vote in the disannexation election. (c) Requires that the disannexation measure appear on the ballot in a manner that provides for voting for one of the three following propositions: (1) "The City of (name of municipality) and the area within its extraterritorial shall not be disannexed from the jurisdiction of the Duval County Conservation and Reclamation District"; (2) "The City of (name of municipality) and the area within its extraterritorial jurisdiction shall be disannexed from the from the Duval County Conservation and Reclamation District and on disannexation the city council of the (name of municipality) shall establish or acquire systems to provide the water and sewer services formerly provides by the District in the disannexed area"; or (3) "The City of (name of municipality) and the area within its extraterritorial jurisdiction shall be disannexed from the Duval County Conservation and Reclamation District and on disannexation the city council of (name of municipality) shall initiate a petition for, and shall consent to, as provided by Sections 54.014 and 54.016, Water Code, the creation of a municipal utility district to provide the water and sewer services formerly provided by the District in the disannexed area." (d) Establishes that if a majority of the total votes in the is in favor of proposition (1), the municipality and the area within its extraterritorial jurisdiction are not disannexed. If the total vote in favor of proposition (2) and (3) is a majority of the votes cast, the majority of the vote os for disannexation. As between propositions (2) and (3), the proposition with that receives the most votes prevails. If disannexation fails, an election under this section to disannex the same municipality and the areas within its extraterritorial may not be held for one year. (e) Establishes that it a majority of the vote is for disannexation, the directors of the District shall vote to disannex at the same board meeting at which the election results are canvassed. Also requires that not later than 30 days after the election results and the District's disannexation vote, the executive director of the Texas Natural Resources Commission shall appoint an independent master to oversee the distribution of assets consistent with disannexation. All infrastructure and real property, including water and sewer lines, storage tanks, treatment plants, towers, buildings, land, and other facilities within the corporate limits or extraterritorial jurisdiction of the disannexed municipality that are related to the provision of water and sewer services by the District within the disannexed municipality or its extraterritorial jurisdiction shall revert tot he disannexed municipality. All receivables from connections within the corporate limits or extraterritorial jurisdiction of the disannexed municipality transfer to the municipality. Other assets, including vehicles, computers, office furniture and equipment, and cash, shall be divided between the District and the municipality by the master in proportion to the number of residents, according to the most recent decennial federal census, living within the boundaries of the District or within the boundaries of the municipality or its extraterritorial jurisdiction. Sec. 4B. (a) Establishes that if a municipality and the area within its extraterritorial jurisdiction disannex as a result of the approval of proposition (2), a municipal water or sewer system established or acquired by the city council of the disannexed municipality may serve an area immediately outside the extraterritorial jurisdiction of the disannexed municipality if the residents of the area agreed to be served. (b) Establishes that if the City of San Diego and the area within its extraterritorial jurisdiction disannex as provided by Section 4A of this Act and a municipal water or sewer system is established or acquired as described by Subsection (a) of this section, the Glossbrenner Substance Abuse Facility is disannexed from the District effective on the date on which that system is established or acquired, and that system may serve that facility. SECTION 4. (a) Establishes effective date of Act as September 1, 1997. (b) Establishes that directors serving on August 31, 1997, serve until their successors are elected and have qualified under this section. The additional positions on the District board created by Section 3, Chapter 398, Acts of the 51st Legislature, Reg. Session, 1949, as amended by this Act, shall be filled at the election to be held May 1998, and until that time the District is governed by a board of four directors. (c) Establishes that the two directors elected at the May 1994 election and the two directors elected at the May 1995 election serve until the May 1998 election. (d) Provides that, except as provided by subsection (f) of this section, seven directors shall be elected at the May 1998 election. Those directors shall draw lots to determine which three directors serve two-year terms and which four directors serve four-year terms. Successor directors serve four-year terms. (e) Establishes that if before the May 1998 election, the City of Benavides has disannexed, and the City of San Diego has not disannexed, four directors elected at that election must be residents of San Diego or its extraterritorial jurisdiction, and three directors elected must be residents of that part of Duval County that is not within the corporate limits or extraterritorial jurisdiction of San Diego or Benavides or within the Free Water Control or Improvement District. (f) Provides that if before the May 1998 election, the City of San Diego has disannexed, four directors shall be elected at that election. If the City of Benavides has not disannexed before that election, two directors elected at that election must be residents of Benavides or its extraterritorial jurisdiction, and two directors elected must be residents of that part of Duval County that is not within the corporate limits or extraterritorial jurisdiction of San Diego or Benavides or the Freer Water Control and Improvement District. If the City of Benavides has disannexed before that election, all four directors elected must be residents of that part of Duval County that is not within the corporate limits of San Diego, Benavides or the Freer Water Control and Improvement District. Those directors hall draw lots to determine which two directors serve two-year terms and which two directors serve four-year terms. Successor directors serve four- year terms. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. No changes. SECTION 2. In the original, the board was to be composed of 6 members elected at large (with certain residency requirements for each of the directors). In the substitute, the board is to be composed of seven members and establishes that as otherwise provided by this Act directors shall be elected using the place system (with designated residency requirements for each place). The substitute also specifies that only qualified voters who are residents of a municipality or its extraterritorial jurisdiction (ETJ) may vote to elect a director to a place assigned to a municipality. The substitute also establishes that only qualified voters who live outside a municipality or its ETJ can vote to elect a director to a place assigned to the rural area of the county; reassigns places to conform with increase in number of directors and deletes language preventing presiding officer from voting except to break a tie; changes frequency of elections from each year to each even-numbered year; and requires that should San Diego vote to disannex, the board would revert to four members. Finally, in the substitute, redistribution of places are adjusted, should disannexation occur, to conform with increase in number of directors. SECTION 3. The substitute: establishes that extraterritorial jurisdiction be included in disannexation provisions with a municipality; changes responsibility for appointment of master to oversee distribution of assets from executive director of the Texas Water Development Board to the executive director of the Texas Natural Resource Conservation Commission; clarifies that the city council of a municipality voting to disannex is responsible for establishing or acquiring a system to provide water and sewer service formerly provided by the District. The substitute allows for municipalities that disannex to serve the residents who live immediately outside their ETJs if the residents of the area agree to be served. Finally, the substitute also specifies that the Glossbrenner Substance Abuse Facility would also be disannexed should San Diego vote to