BLS H.B. 3609 75(R)BILL ANALYSIS NATURAL RESOURCES H.B. 3609 By: Place 5-9-97 Committee Report (Unamended) BACKGROUND The Upper Leon River Municipal Water District (district) was created in 1961 by the 57th Legislature for the purpose of creating an entity to acquire water storage rights and the necessary improvements and construction in order to provide a water supply system to the cities of Comanche, DeLeon, Dublin, Gorman, Hamilton, Hico and Stephenville. PURPOSE To amend Chapter 405, Acts of the 57th Legislature, Regular Session, the district's enabling legislation, by defining the boundaries of the district, providing staggered terms for the members of the board of directors, qualifications for the members of the board of directors, requiring the district to follow the provisions of the Water Code in awarding contracts and depositing and investing money, and removing conflicts with the district's Act and the Interlocal Cooperation Act. 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 2, Chapter 405, Acts of the 57th Legislature, Regular Session, 1961, to provide that boundaries of the district are coterminous with the boundaries of any Constituent Cities as those boundaries exist on September 1, 1997, and as those municipal boundaries change by action of the governing bodies of the Constituent Cities after that date. SECTION 2. Amends Section 3(a), Chapter 405, Acts of the 57th Legislature, Regular Session, 1961, to provide for staggered three-year terms of the members of the Board of Directors. Makes conforming changes. SECTION 3. Amends Section 10, Chapter 405, Acts of the 57th Legislature, 1961, by requiring the district to meet requirements of Chapter 49, Water Code, for bidding for and awarding of construction contracts by the district. Makes conforming changes. SECTION 4. Amends Section 16, Chapter 405, Acts of the 57th Legislature, Regular Session, 1961, to allow the governing body of each Potential City, Constituent City, or other city annexed to or desiring to obtain water from the district to enter into a contract with the district for the purchase of water or other services, or for any other purposes within the powers, rights, privileges, and functions of the district without calling or holding an election on the contract. Further, the authority granted to the governing body of the Potential City, Constituent City, or other city under this subsection prevails over any home-rule charter or local ordinance of the city or any other law in conflict with this subsection. Makes conforming changes. SECTION 5. Amends Section 17, Acts of the 57th Legislature, Regular Session, 1961 (Article 8280-257, V.T.C.S.), to conform to the change in Section 1. Also, this section allows the board of directors of a district, by resolution adopted by majority vote, to declare that a city is no longer a Potential City if the district has no outstanding bonds that are payable from taxes; and the Potential City has not held an election on the question of approval of a contract between the Potential City and the district, or has held an election on but has not approved a contract between the Potential City and the district. Makes conforming and nonsubstantive changes. SECTION 6. Amends Section 21, Chapter 405, Acts of the 57th Legislature, Regular Session, 1961, to require that the district's money be deposited and invested as provided by Chapter 49, Water Code. Makes conforming changes. SECTION 7. Sets forth the procedure for determining the staggered terms of the members of the Board of Directors in conformance with the amendment made to Section 3(a) of the district's Act. SECTION 8. Provides legislative findings regarding compliance with the constitution, legislative rules and other state laws regarding passage of this bill. SECTION 9. Effective date: September 1, 1997. SECTION 10. Emergency clause.