SRC-TNM S.B. 1820 75(R) BILL ANALYSIS
Senate Research Center S.B. 1820
By: Shapleigh
Natural Resources
4-21-97
As Filed
DIGEST
Currently, the Permanent School Fund owns all of the property within the
proposed municipal utility district Paseo del Este Municipal Utility. In
anticipation of annexation by the City of El Paso, in 1993 the School Land
Board removed property from the Lower Valley Water Authority. Despite
efforts by the General Land Office and the City of El Paso, they have not
been able to come to a consensus on an annexation and/or utility service
plan. The Permanent School Fund property is not as developed as it could
be and has no access to utilities. S.B. 1820 would create the Paseo del
Este Municipality to provide Permanent School Fund Land with a vehicle
for providing utilities in a timely, affordable manner.
PURPOSE
As proposed, S.B. 1820 outlines provisions, provides for the authorization
of bonds and the levy of taxes, and provides civil penalties regarding the
creation, administration, powers, duties, functions, operation, and
financing of the Paseo del Este Municipal Utility District.
RULEMAKING AUTHORITY
This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency.
SECTION BY SECTION ANALYSIS
ARTICLE I. GENERAL PROVISIONS
SECTION 1.01. CREATION. Provides that by virtue of Section 59, Article
XVI, Texas Constitution, a conservation and reclamation district is
created to be known as Paseo del Este Municipal Utility District
(district) which shall be a governmental agency and a body politic and
corporate. Provides that the district is created under and is essential
to accomplish the purposes of Section 59, Article XVI, Texas Constitution.
Requires the district to have all of the powers of municipal utility
districts established under Chapter 54, Water Code, and the district shall
conduct its affairs subject to Chapters 50 and 54, Water Code, unless
otherwise provided in this Act.
SECTION 1.02. TERRITORY. Sets forth the territory the district is
required to comprise.
ARTICLE II. ADMINISTRATIVE PROVISIONS
SECTION 2.01. BOARD. Requires the district to be governed by and all
powers of the district to be exercised by a board of five directors
(board).
SECTION 2.02. DIRECTOR ELIGIBILITY. Sets forth requirements for director
eligibility.
SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES. Sets forth
the terms of the board of directors and appointment procedures for initial
directors.
SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. Sets forth requirements
regarding the election of permanent directors.
SECTION 2.05. QUALIFIED VOTERS. Provides that if any owner of over 500
acres of land within the district is a constitutional fund of the state,
the members of the state board responsible for administering the land
holdings of such fund shall each be qualified voters of the district.
SECTION 2.06. QUALIFICATION OF DIRECTOR. Sets forth requirements regarding
the qualification of a director.
SECTION 2.07. MEETINGS AND ACTIONS OF THE BOARD. Sets forth requirements
and outlines provisions regarding meetings and actions of the board.
SECTION 2.08. ORGANIZATION OF BOARD. Sets forth requirements regarding the
organization of the board.
SECTION 2.09. INTEREST IN CONTRACT. Provides that a director who is
financially interested in a contract proposed to be executed by the
district for the purchase of property or services or for the construction
of facilities shall disclose the interest to the board and may not vote on
the acceptance of the contract.
SECTION 2.10. DISTRICT EMPLOYEES. Sets forth requirements regarding
district employees.
SECTION 2.11. EMPLOYEE BONDS. Sets forth requirements regarding employee
bonds.
SECTION 2.12. PRINCIPAL OFFICE. Sets forth requirements and provisions
regarding the maintenance of the district's principal office.
SECTION 2.13. RECORDS. Sets forth requirements regarding the storage of
records.
SECTION 2.14. SUIT. Authorizes the district to sue and be sued in its
corporate name.
ARTICLE 3. POWERS AND DUTIES
SECTION 3.01. POWERS AND DUTIES. Sets forth powers and duties of the
district.
SECTION 3.02. DISTRICT RULES. Sets forth district rules.
SECTION 3.03. INSPECTIONS AND ALLEGATIONS. Authorizes the district to
enter public or private property in the district for the purpose of
inspecting and investigating conditions relating to its authorized
purposes under the same provisions and restrictions applicable to the
Texas Natural Resource Conservation Commission in addition to the powers
conferred on it under Section 54.216, Water Code.
SECTION 3.04. HEARINGS AND ORDERS. Sets forth hearings and orders of the
board.
SECTION 3.05. CIVIL PENALTY; INJUNCTION. Outlines provisions regarding a
civil penalty for a person in violation of a rule, permit, or order of the
district.
SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS. Outlines
provisions regarding permits, contracts, and cooperative agreements.
SECTION 3.07. FACILITIES. Outlines provisions regarding district
facilities.
SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. Sets forth
requirements and outlines provisions regarding the acquisition and
disposition of property.
SECTION 3.09. RELOCATION OF FACILITIES. Sets forth requirements regarding
the relocation of district facilities.
ARTICLE 4. GENERAL FISCAL PROVISIONS
SECTION 4.01. DISBURSEMENT OF MONEY. Authorizes the district to disburse
money only by check, draft, order, or other instrument signed by the
person or persons authorized in the board's bylaws or by board resolution.
SECTION 4.02. FEES AND CHARGES. Authorizes the district to establish fees
and charges not to exceed the amounts necessary to enable the district to
fulfill the obligations imposed on it by this Act.
SECTION 4.03. LOANS AND GRANT. Sets forth provisions regarding loans and
grants.
SECTION 4.04. FISCAL YEAR. Requires the board to establish the district's
fiscal year.
SECTION 4.05. DEPOSITORY BANKS. Sets forth requirements and outlines
provisions regarding the designation of depository banks by the board.
ARTICLE 5. BOND AND TAX PROVISIONS
SECTION 5.01. TAX; REVENUE BONDS. Sets forth requirements and outlines
provisions regarding tax and revenue bonds.
SECTION 5.02. BOND ANTICIPATION NOTES. Outlines provisions regarding bond
anticipation notes.
SECTION 5.03. REFUNDING BONDS. Outlines provisions regarding refunding
bonds.
SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. Requires district bond
review and approval to be governed by the provisions of Chapter 54F, Water
Code.
SECTION 5.05. TAXATION. Outlines provisions and sets forth requirements
regarding taxation.
SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. Sets forth requirements
regarding bonds.
SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY. Sets forth
requirements regarding property in the district.
ARTICLE 6. ADDITION OF LAND TO DISTRICT
SECTION 6.01. ANNEXATION. Authorizes other territory to be included in the
district as provided in Sections 6.02, 6.03, and 6.04 of this Act
notwithstanding any other provision of law.
SECTION 6.02. PETITION. Sets forth requirements and outlines provisions
regarding the filing of a petition.
SECTION 6.03. NOTICE AND HEARING. Sets forth requirements regarding notice
and hearing.
SECTION 6.04. ANNEXATION ORDER. Outlines provisions regarding an
annexation order.
ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
SECTION 7.01. PETITION. Outlines provisions regarding a petition of a
landowner.
SECTION 7.02. NOTICE AND HEARING. Sets forth requirements regarding notice
and hearing.
SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND. Sets forth
provisions regarding the effective date of an order excluding land.
SECTION 7.04. PETITION FOR RATIFICATION ELECTION. Outlines provisions
regarding a petition for a ratification election.
ARTICLE 8. DIVISION OF DISTRICT
SECTION 8.01. CONDITIONS OF DIVISION. Outlines provisions regarding the
conditions of division of the district.
SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS. Sets forth
requirements regarding an election to establish the authority of new
districts.
SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. Outlines provisions
and sets forth requirements regarding the appointment and election of
directors of resulting districts.
SECTION 8.04. PAYMENT OF DISTRICT DEBTS. Outlines provisions regarding the
payment of district debts.
SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. Sets forth requirements
regarding the authority of resulting districts.
SECTION 8.06. ASSUMPTION OF OBLIGATIONS. Sets forth requirements and
outlines provisions regarding the assumption of obligations.
SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION COMMISSION.
Requires the original district that confirms a plan for division to
provide written notice of such plan to the Texas Natural Resource
Conservation Commission within 30 days after a division election.
ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
SECTION 9.01. ANNEXATION. Sets forth requirements regarding annexation of
a municipality.
ARTICLE 10. AFFORDABLE HOUSING
SECTION 10.01. Requires a minimum of five percent of the residential
housing units within the district to be utilized for the construction of
affordable housing, such as affordable housing to be distributed among
different residential areas of the district. Defines "affordable
housing."
ARTICLE 11. MISCELLANEOUS PROVISIONS
SECTION 11.01. NO TAXATION. Outlines provisions regarding no taxation.
SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Sets forth
findings relating to procedural requirements.
SECTION 11.03. Severability clause.
SECTION 11.04. Emergency clause.
Effective date: upon passage.