JBM C.S.S.B. 1888 75(R)    BILL ANALYSIS


NATURAL RESOURCES
C.S.S.B. 1888
By: Brown (Jackson)
5-13-97
Committee Report (Substituted)



BACKGROUND 

A few special districts (water control and improvement districts and
municipal utility districts) lie in the extraterritorial or other
jurisdictions of more than one city. Since 1959, the dissolution of any
such special districts has normally been under Section 43.076, Local
Government Code or its precursor laws.  

In 1971, the Legislature enacted Sections 43.077 and 43.078, Local
Government Code. These two sections essentially mandate the dissolution
and termination of any special district located in more than one
municipality within 90 days after the occurrence of certain events,
notably the inclusion of all territory of the special district within the
boundaries of cities. This bill would repeal these two sections and
establish Section 43.076, Local Government Code, as the viable mechanism
for the dissolution of a special district located in more than one
municipality. 

PURPOSE

To repeal Sections 43.077 and 43.078, Local Government Code, regarding
certain special districts, and establish Section 43.076, Local Government
Code, as the viable mechanism for the dissolution of a special district
located in more than one municipality. 

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 43.076(a), Local Government Code, as follows:  

 Section 43.076 (a)(3) is added to read that the district is a
conservation and reclamation district of more than 10,000 acres that
provides water and sanitary sewer service to households and parts of which
are located in two or more municipalities, one of which has a population
of more than 1.6 million.  Makes conforming changes. 

SECTION 2.  Amends Subchapter D, Chapter 43, Local Government Code, by
adding Section 43.0761, as follows: 

 Section 43.0761. (a) States that a district existing on September 1,
1997, that within 10 years after its creation, has not provided water and
sanitary sewer utility service from its facilities to all households users
in its territory shall: 
  (1) provide water and sanitary sewer utility service from its facilities
to all   household users in its territory not later than September 1,
1998; or  
  (2) for the part of the district for which the district does not provide
water and   sanitary sewer utility service, and for which a municipality
does provide those   services, provide for periodic payments, as described
by subsection (b), by the   district to the municipality that provides the
services.  

 (b) States that payments made under Subsection (a)(2) are operation and
maintenance  expenses of the district and shall be made at least every
three months.  The total annual amount of payments may not exceed the
lesser of: 
    (1) the total annual cost to the municipality of providing the water
and sanitary   sewer utility service, including both capital and operation
and maintenance costs   and expenses; or 
  (2) the total annual amount of maintenance and operation taxes and debt
service   or bond taxes paid to the district by the owners of taxable
property within the   district that receives water and sanitary sewer
utility service from the     municipality.    
 
 (c ) States that for purposes of Subsection (b)(2), the value of taxable
property that  receives the utility service shall be determined by the
most recent certified tax roll  provided by the central appraisal district
in which the property is located.  The amount of  the taxes shall be
determined using rates from the district's most recent tax levies. 

 (d) States that a district that, on January 1, 1997, was providing water
and sanitary sewer  utility service to households outside the territory of
the district may not discontinue that  service and shall continue to
provide that service on the basis of rates established by the  district in
accordance with Chapter 13, Water Code. 

 (e) Defines a "district," in this Section, as a conservation and
reclamation district of more  than 10,000 acres that provides water and
sanitary sewer utility service to households and  parts of which are
located in two or more municipalities, one of which has a population of
more than 1.6 million.    

SECTION 3.  Repeals Sections 43.077 and 43.078 of the Local Government
Code. 

SECTION 4.  Effective date: September 1, 1997.

SECTION 5.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1 of the original bill is Section 3 in the committee substitute. 

SECTION 1 of the substitute has been added and was not in the original
measure. 

SECTION 2(a) of the original is Section 4 in the committee substitute.
Also, Section 2(b) of the original that states that the change in law made
by this Act does not apply to a conservation and reclamation district all
the territory of which is and the former law is continued in effect for
purposes of abolishing such a district is deleted in the substitute.   

SECTION 2 of the substitute has been added.

SECTION 3 of the original is Section 5 in the committee substitute.