SRC-SLL H.B. 3597 75(R) BILL ANALYSIS
Senate Research CenterH.B. 3597
By: Williamson (Sibley)
Natural Resources
5-15-97
Engrossed
DIGEST
Concern has been raised that an entity is needed in the rural areas of
Parker County to provide for the orderly development of water and
wastewater services. A utility district created under Section 59, Article
XVI, Texas Constitution, with the powers of Chapters 49, 54, and 65, Water
Code, would provide these needed services. S.B. 1944 creates the Parker
County Utility District No. 1 for the rural areas of Parker and Wise
counties to acquire wastewater and collection facilities; to build,
operate, and maintain facilities to treat and transport wastewater; to
protect and restore the purity and sanitary condition of water within the
district; and to provide other utilities within the district that are not
otherwise provided.
PURPOSE
As proposed, H.B. 3597 provides for the creation, administration, powers,
duties, operation, and financing of the Parker County Utility District No.
1; and grants the power of eminent domain.
RULEMAKING AUTHORITY
Rulemaking authority is granted to the board of directors of the Parker
County Utility District No. 1 in SECTIONS 2.18 and 6.01(d); and to the
Parker County Utility District No. 1 in SECTION 3.09(a) of this bill.
SECTION BY SECTION ANALYSIS
ARTICLE 1. CREATION OF THE DISTRICT
SECTION 1.01. CREATION. Provides that a regional wastewater district,
to be known as the Parker County Utility District No. 1 (district), is
created as a governmental body and a body politic and corporate. Provides
that the district is created and is essential to accomplish the purposes
of Section 59, Article XVI, Texas Constitution.
SECTION 1.02. DEFINITIONS. Defines "board," "bond," "customer,"
"director," "district," "local government," "member entity," "participant
entity," "person," and "service area."
SECTION 1.03. PURPOSES. Establishes that the district is created to
purchase, own, hold, lease or otherwise acquire wastewater collection
facilities; to build, operate, and maintain facilities to treat and
transport wastewater; to protect, preserve, and restore the purity and
sanitary condition of water within the district; and to provide other
utilities within the district if the utilities are not otherwise provided.
SECTION 1.04 BOUNDARIES. Provides that the district includes the
territory contained in a certain area.
SECTION 1.05. FINDINGS RELATING TO BOUNDARIES. Provides that the
legislature finds that the boundaries and field notes of the district form
a closure. Sets forth the terms by which a mistake in the field notes
does not affect the organization, existence, or validity of the district,
or the legality or operation of the district or governing body.
SECTION 1.06. FINDING OF BENEFIT. Provides that all of the land and other
property included within the boundaries of the district will be benefited
by the improvements, works, and projects that are to be accomplished by
the district.
SECTION 1.07. FINDING OF STATE BENEFIT. Provides that the legislature
finds that the creation of the district will benefit the state by
contributing to economic development and diversification; decreasing the
rate of unemployment and underemployment; stimulating agricultural
innovation; fostering enterprise growth based on agriculture; and
contributing to the development of transportation and commerce.
SECTION 1.08. POWERS. Establishes that, except as provided by this
section, the district has all of the rights, powers, privileges,
authority, functions, and duties provided by general law of this state;
and prevails over any provision of general law that is in conflict with
this Act. Prohibits the district from levying or collecting ad valorem
taxes. Provides that the powers of the district are subject to the
continuing right of supervision of the state to be exercised by and
through the Texas Natural Resource Conservation Commission (TNRCC).
Authorizes the district, except as provided by this Act or other state
law, to exercise the rights, powers, privileges, authority, functions, and
duties conferred by this Act without having to obtain approval from TNRCC.
SECTION 1.09. CONFIRMATION ELECTION NOT REQUIRED. Provides that creation
of the district does not require a confirmation election.
ARTICLE 2. ADMINISTRATIVE PROVISIONS
SECTION 2.01. APPOINTMENT OF DIRECTORS. Establishes that the district is
governed by a board of directors (board) as provided by this section.
Sets forth provisions and procedures regarding the appointment of
directors.
SECTION 2.02. REMOVAL OF DIRECTORS. Authorizes the director to be removed
for any reason by the governing body of the member entity that appointed
the director or if three-quarters of the directors vote to remove the
director.
SECTION 2.03. DIRECTOR QUALIFICATIONS. Sets forth the qualifications for
serving as director.
SECTION 2.04. DIRECTOR VOTING. Sets forth voting requirements for a
director.
SECTION 2.05. DIRECTOR COMPENSATION. Sets forth compensation requirements
for a director.
SECTION 2.06. EX OFFICIO DIRECTORS. Authorizes the board to appoint ex
officio members.
SECTION 2.07. EXCLUSIVE AUTHORITY OF BOARD. Provides that the board has
exclusive authority to manage a district.
SECTION 2.08. POWERS AND DUTIES OF THE BOARD. Sets forth the powers and
duties of the board.
SECTION 2.09. ELECTION OF OFFICERS. Sets forth procedures for electing
officers.
SECTION 2.10. POWERS AND DUTIES OF OFFICERS. Sets forth powers and duties
of the officers.
SECTION 2.11. DISTRICT EMPLOYEES. Authorizes the board to appoint and
employ any person, firm, or entity determined necessary to conduct the
affairs of the district.
SECTION 2.12. CONFLICT OF INTEREST. Provides that directors and officers
are subject to Chapter 572, Government Code.
SECTION 2.13. OPEN RECORDS. Provides that Chapter 551, Government Code,
applies to certain records of the district.
SECTION 2.14. DISTRICT BUSINESS. Sets forth requirements for conducting
district business.
SECTION 2.15. CUSTOMER ADVISORY COUNCIL. Authorizes the board to establish
a customer advisory council (council). Sets forth constituency and powers
of representatives on the council. Authorizes the council to be abolished
by the board.
SECTION 2.16. ADMINISTRATION AND PLANNING COSTS FEE. Sets forth
requirements for charging an administration and planning costs fee.
SECTION 2.17. EXPANSION OF DISTRICT BOUNDARIES. Sets forth requirements
for expanding district boundaries.
SECTION 2.18. RULES AND REGULATIONS. Authorizes the board to adopt rules
to perform duties of the district as provided by this Act.
ARTICLE 3. RIGHTS, POWERS, AND DUTIES
SECTION 3.01. RIGHTS IN SERVICE AREA. Authorizes the district to own,
operate, and provide for certain services in certain circumstances.
SECTION 3.02. RIGHTS OF OTHER ENTITIES PROTECTED. Sets forth the rights of
other entities in a service area.
SECTION 3.03. PURCHASE, CONSTRUCT, OR ACQUIRE WORKS AND FACILITIES.
Authorizes the district to purchase construct, or acquire works and
facilities that are necessary.
SECTION 3.04. FINANCING CAPITAL IMPROVEMENTS. Provides that the district
is a political subdivision.
SECTION 3.05. ADDITIONAL POWERS. Sets forth additional powers of a
district.
SECTION 3.06. EMINENT DOMAIN. Sets forth requirements and procedures for
acquiring land by eminent domain.
SECTION 3.07. SERVICE OUTSIDE DISTRICT. Authorizes the district to provide
services outside the district.
SECTION 3.08. DISPOSAL SYSTEMS. Authorizes the district to take certain
actions with respect to waste disposal systems. Requires the district, if
the district establishes a disposal system, to provide services from the
system to certain persons.
SECTION 3.09. RULES RELATING TO WATER QUALITY. Authorizes the district to
adopt rules relating to protection of water quality. Sets forth
requirements of the rules.
SECTION 3.10. RATES, FEE, CHARGES, AND RENTALS. Authorizes the district to
adopt, enforce, and collect certain rates, fees, charges, and rentals.
Provides that the rates, fees, charges, and rentals may vary according to
certain situations. Authorizes a district to require a customer to obtain
a deposit from certain persons. Sets forth requirements for issuing
revenue bonds. Authorizes a local government, water supply corporation,
or other entity that enters into a contract with a district to take
certain actions. Authorizes the district to discontinue services to
prevent abuse or to enforce payment of an unpaid charge, fee, or rental
due.
SECTION 3.11. REGULATORY POWER OF MUNICIPALITIES. Provides that the
district is subject to certain rules and regulations.
SECTION 3.12. GENERAL CONTRACTING AUTHORITY. Authorizes a district to
exercise certain actions.
SECTION 3.13. AUTHORITY TO CONTRACT WITH DISTRICT. Authorizes certain
government authorities to enter into contracts with the district.
Authorizes the governing body of an entity to pledge to the payment of the
contract any source of revenue. Provides that certain payments constitute
an operating expense.
SECTION 3.14. DEPOSITORY. Requires the board, by order or resolution, to
designate one or more banks as a depository of funds. Requires funds to be
deposited into the depository. Authorizes the board to invest in certain
investments.
SECTION 3.15. JOINT AUTHORITY. Authorizes the district to take certain
actions for purposes of accomplishing the objectives and exercising powers
of the district.
ARTICLE 4. GENERAL FISCAL PROVISIONS
SECTION 4.01. AUDITS. Requires all funds and accounts of the district to
be audited by an independent auditor. Requires a copy of an audit
required under this section to be maintained in the official records of
the district.
SECTION 4.02. CREATION EXPENSES. Authorizes the district to pay the
costs and expenses incurred in obtaining the Walnut Basin Regional
Wastewater Study and, if conducted, other feasibility studies and other
costs and expenses incurred in creating and organizing the district.
Authorizes the district to succeed to and assume rights, privileges,
duties, and responsibilities of the City of Springtown and the Walnut
Creek Special Utility District relating to the creation of the district.
SECTION 4.03. TAX EXEMPTION. Provides that the accomplishments of the
purposes of the district benefit the people, property, and industry of the
state. Provides that the district is performing an essential public
function under the Texas Constitution by accomplishing the purposes of the
district and is not required to pay any tax or assessment on any property
or project owned, operated, leased, or controlled by the district or any
part of that property, and the bonds or other obligations issued by the
district under this Act and the transfer and income from those bonds or
other obligations are free from taxation in the state.
ARTICLE 5. BONDS
SECTION 5.01. ISSUANCE OF BONDS. Authorizes the district to issue bonds
to provide district funds to carry out the purposes and exercise the
powers of the district. Authorizes the district to issue revenue bonds,
notes, revenue anticipation notes, short-term obligations, refunding
bonds, or other obligations without holding an election and on terms that
the board determines to be appropriate.
SECTION 5.02. PAYMENT AND SECURITY. Sets forth permissible payments and
security terms and conditions for the obligations issued under Section
5.01.
SECTION 5.03. TERMS AND CONDITIONS. Sets forth permissible and mandatory
terms and conditions for bond and other obligations of the district.
SECTION 5.04. NEGOTIABLE INSTRUMENTS. Provides that obligations under
this article are negotiable instruments for purposes of Chapter 8,
Business & Commerce Code.
SECTION 5.05. PROCEEDS. Authorizes the proceeds from the sale of the
bond or other obligation, if permitted in the resolution that authorized
the issuance of the bond or other obligation, to be used for certain
items. Authorizes the proceeds from the sale of bonds or other
obligations to be placed on time deposit or invested as provided by the
resolution that authorized the issuance of the bond or other obligation.
SECTION 5.06. MISCELLANEOUS. Provides that the district is an issuer as
defined by Section 3.001, Article 717k-8, V.T.C.S. Requires bonds issued
by the district under this Act and the appropriate proceedings authorizing
the issuance of the bonds to be submitted to the attorney general for
examination if required under Article 717k-8, V.T.C.S. Authorizes a copy
of the contract and the proceedings relating to the contract, if a bond
issued by the district contains a recital that the bond is secured by a
pledge of revenue derived from a contract, to also be submitted to the
attorney general. Requires the attorney general, under certain
conditions, to approve the bonds and, if submitted, the contract and the
comptroller shall register the bonds. Provides that the bonds and the
contract, under certain conditions, are incontestable in any court or
other forum for any reason and are valid and binding obligations as
provided by the terms of the obligation. Authorizes the district to issue
bonds and other obligations as provided by Article 717k-9, V.T.C.S.
ARTICLE 6. ADDING TERRITORY TO THE DISTRICT
SECTION 6.01. ADDITION OF MEMBER ENTITIES. Authorizes the board, under
certain conditions, to add a member entity to the district as provided by
this section. Requires a petition to be submitted in the manner and form
required by the district bylaws. Requires the board to give notice and
hold a hearing on the petition to determine if adding the member entity to
the district will benefit the territory or service area within the member
entity; and is in the best interests of the district. Requires the board,
under certain conditions, to issue a certain order. Requires the board to
include in an order issued under Subsection (d) a certain requirement.
Requires reimbursement under this subsection to be an equitable pro rata
share of the costs paid by the existing member entities or the district.
SECTION 6.02. APPOINTMENT OF DIRECTORS BY NEW MEMBER ENTITY. Requires
the governing body of the member entity, under certain conditions, to
appoint the appropriate number of directors to the board as provided by
Section 2.01(g) of Article 2 of this Act.
ARTICLE 7. MISCELLANEOUS PROVISIONS
SECTION 7.01. INITIAL DIRECTORS. Sets forth guidelines relating to the
appointment of initial directors as required by Section 2.01(b) of Article
2 of this Act. Sets forth provisions regarding the services of the ex
officio director as provided by Section 2.01(d) of Article 2 of this Act.
SECTION 7.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Sets forth
provisions pertaining to certain procedural requirements already
accomplished in order to ensure proper passage of this bill.
SECTION 7.03. Emergency clause.
Effective date: upon passage.