JBM C.S.S.B. 1463 75(R) BILL ANALYSIS NATURAL RESOURCES C.S.S.B. 1463 By: Wentworth (Keel) 4-30-97 Committee Report (Substituted) BACKGROUND Currently, the board of directors of the Southwest Travis County Water District is composed of nine appointed members, and the board has the authority to issue bonds with a maturity date of 50 years after the date of issuance. Most boards of other conservation and reclamation districts are elected. Additionally, long maturity dates are normally associated with major infrastructure projects which are built to take advantage of revenue stream sufficient to cover a shorter maturity period. A 40-year maturity date is more in line with current financial markets' acceptance for the longest maturity for newly issued bonds. The law creating the Southwest Travis County Water District allowed it to provide fresh water, sanitary sewer services and roadways. This authority needs to be removed, as these services are being provided by other entities. PURPOSE To require the board directors of the Southwest Travis County Water District to be elected; to change the number of board members; limit the authority of the District to provide a fresh water supply, furnish wastewater, roadways, solid waste disposal, and drainage facilities or enforce any provisions of agreements between a municipal utility district located within the district and any political subdivision; change the maturity date of bonds issued by the District to 40 years; and make technical corrections to the description of boundaries. 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 2.01(b), Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to provide that the Board of Directors of the Southwest Travis County Water District (Board) consists of seven members elected from the Southwest Travis County Water District (District) at large, rather than nine members appointed by the governor. SECTION 2. Amends Section 2.02, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to require a person to reside in the District, rather than Travis County, in order to be eligible to serve as a director of the Board. Deletes a requirement that seven of the directors must reside in the District. Makes conforming changes. SECTION 3. Amends Section 2.03, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to provide as follows: Provides "Sec. 2.03. TERMS OF DIRECTORS AND DIRECTOR ELECTIONS." as a new heading for the section. (a) Provides that directors on the Board are elected for staggered terms of four years. (b) Requires an election to be held on the first Saturday in May of each evennumbered year in the District for the election of three or four directors, as appropriate, from the District at large. (c) Prescribes balloting procedures for the Board. (d) Provides that, when the vote is canvassed, the Board shall declare the three or four persons, as appropriate, who receive the most votes to be elected as directors. (e)-(f) Sets forth the procedures for filling vacancies on the Board. (g) Provides that, except as provided by this section, a director's election must be conducted in accordance with the Election Code and the election provisions contained in Chapter 49, Water Code. SECTION 3 also deletes existing text relating to the appointment of directors and the filling of vacancies. SECTION 4. Amends Section 2.04, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to require each director on the Board to qualify to serve as a director in the manner provided by Section 49.055, Water Code, rather than Sections 51.0721, 51.078, and 51.079, Water Code. Requires the District to pay the premiums for each director's bond required under Section 49.055, Water Code, rather than Section 51.079, Water Code. SECTION 5. Amends Section 3.11(b), Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to provide that the District is the only political subdivision within the state authorized to: (1) enforce the provisions of an agreement between or that applies to a municipal utility district located within the District and any local government or other political subdivision in the state or a restrictive covenant that is required by such an agreement to be imposed on land within the district if the provisions of the agreement or restrictive covenant relate to land use or site plans, the regulation of drainage or septic tanks, the control and abatement of water pollution, the prohibition of pollution and policing of any source of water supply, or the protection and policing of watersheds within the District; or (2) grant a waiver of or variance from the requirements of an agreement or restrictive covenant described by Subdivision (1) to the extent that the requirements are inconsistent with the District's rules or water pollution control and abatement plan of the District. SECTION 6. Amends Article 3, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, by adding Section 3.24 to provide as follows: Sec. 3.24. LIMITATION ON DISTRICT'S AUTHORITY. Restricts the authority of the District under this Act to: (1) supply fresh water for domestic or commercial use; (2) furnish sanitary sewer services, roadways, or drainage facilities; or (3) enforce any provisions of an agreement between a municipal utility district located within the District and any political subdivision of the state relating to the provision of wholesale water or wastewater service or to the construction or financing of facilities necessary to provide wholesale water or wastewater service to the municipal utility district. SECTION 7. Amends Section 5.01(c), Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to require bonds issued by the District to mature serially or otherwise not more than 40 years after their date, rather than 50 years. SECTION 8. Amends Section 6.01, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to make technical corrections to the description of the boundaries of the District. SECTION 9. Amends Section 7.03, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, to require that a local government providing water, wastewater, drainage, or solid waste disposal service to an area within the District on January 1, 1995, shall continue to provide the service to all applicants for the service located within the local government's service area on January 1, 1995, on the same terms that the local government provides the service to other customers located within the local government's service area, and that any contracts for providing such service may not be modified unless all parties consent to such modifications, including the quantity of service. SECTION 10. Repeals Sections 3.12-3.15 and 3.22, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995. SECTION 11. Legislative findings related the creation and purpose of the District and to the Barton Springs Edwards Aquifer. SECTION 12. Validates and confirms all acts of the board of directors of the District occurring before the effective date of this Act. SECTION 13. Provides that, notwithstanding Section 2.01(b), Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, as amended by this Act, the District's rights and functions are exercised by a Board composed as provided by Section 14 of this Act until the transition from an appointed to an elected board is completed. Also, this section states that notwithstanding Section 2.02, Chapter 844, Acts of the 74th Legislature, Regular Session, 1995, as amended by this Act, a member of the Board who was not required to reside in the District at the time of appointment may continue to serve as director without residing in the District until expiration of the member's term, including any additional period of service required by Section 17, Article XVI, Texas Constitution. SECTION 14. (a) Requires the transition of the Board from an appointed to an elected body to be accomplished as provided by this section, notwithstanding any other provision in this Act. (b) Requires the Board to call and hold an election on the first Saturday in May 1998 to elect seven directors from the District at large. Provides that the nine appointed directors continue to hold office, in accordance with Section 17, Article XVI, Texas Constitution, until the elected directors qualify for office. Requires the seven elected directors by lot to determine which three directors serve two-year terms and which four directors serve four-year terms. SECTION 15. Requires the secretary of state to prescribe any necessary procedures to implement this Act, including modifications of applicable election procedures, periods, or deadlines. SECTION 16. (a) Provides that the proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all required persons, agencies, officials, or entities, including the governor, who has submitted the notice and the Act to the Texas Natural Resource Conservation Commission (TNRCC). (b) Provides that TNRCC has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house within the required time. (c) Provides that all requirements of the constitution and laws of this state and of the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 17. Effective date: September 1, 1997. SECTION 18. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTIONS 1 through 4 have no substantive differences. SECTION 5 of the original is now Section 7 of the substitute. SECTION 5 of the substitute was not in the original. SECTION 6 of the original is now Section 8 of the substitute. SECTION 6 of the substitute was not in the original. SECTION 9 of the substitute was not in the original. SECTION 10 of the substitute was not in the original. SECTION 11 of the substitute was not in the original. SECTION 12 of the substitute was not in the original. SECTION 7 of the original is now Section 13 of the substitute. Makes conforming changes. SECTION 8 of the original is now Section 14 of the substitute. SECTION 9 of the original is now Section 15 of the substitute. SECTION 10 of the original is now Section 16 of the substitute. SECTION 11 of the original is now Section 17 of the substitute. SECTION 12 of the original is now Section 18 of the substitute.