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.