HBA-RBT H.B. 694 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 694 By: Denny Natural Resources 3/5/1999 Introduced BACKGROUND AND PURPOSE The Upper Trinity Regional Water District (district) was authorized and approved by the legislature in 1989. The district, during the nine years that have elapsed since its creation, has carried out its constitutional and legislative mandates to provide wholesale water and wastewater service to its area, all of Denton County, all of the area outside of Denton County within the boundaries of any of its member entities and the city of Irving in a conscientious and effective manner. The initial criteria for admission of new members required all parties to become at least a contract member (a member obligated to share in the administrative costs) within two years of passage of the Act creating the district and, ten years from that same date, to become a participatory member (a member obligated to pay both a proportionate share of the operator and maintenance expense and a proportion of one or more of the capital costs of a project). House Bill 694 clarifies the ability of the district to establish criteria for the admission of new members and the weight to be given to their vote. The bill also authorizes the district's board to establish rules and regulations relating to attendance of board meetings. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of directors of the Upper Trinity Regional Water District in SECTION 1 (Section 6, Chapter 1053, Acts of the 71st Legislature, Regular Session, 1989) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 6(d), Chapter 1053, Acts of the 71st Legislature, Regular Session, 1989, to entitle entities that contract with the Upper Trinity Regional Water District (district) to representation on the board of directors of the district (board) under the rules established by the board for admission of board members and member entities. Deletes language providing that an entity was entitled to representation after two years from the effective date of the Act. Authorizes the board to establish rules for admission of entities regarding membership on the board, the authority of board members to vote, and the weight to be given to votes on matters requiring a weighted vote. SECTION 2. Amends Section 7, Chapter 1053, Acts of the 71st Legislature, Regular Session, 1989, by adding Subsections (h) and (i), as follows: (h) Provides that any director who is not in compliance with attendance rules established by the board will not be counted in determining whether a quorum is present or to determine whether the eligibility requirements for a weighted vote have been met. (i) Requires the secretary of the board to notify by writing the entity which appointed a director of the director's noncompliance with attendance rules. SECTION 3. Amends Section 38(c), Chapter 1053, Acts of the 71st Legislature, Regular Session, 1989, to provide that a petition must specify the boundaries of a proposed subdistrict in a manner satisfactory to and approved by the district's chief executive officer and general counsel, rather than specifying the metes and bounds. SECTION 4. Provides that all resolutions, orders, and other acts or attempted acts of the board relating to any election, contract, or issuance of bonds or other obligations and the expenditure of funds in payment of the bonds and all other governmental and proprietary actions by the board of the district are validated in all respects and as though they originally had been legally authorized or accomplished. SECTION 5. Provides that Section 4 of this Act does not apply to litigation pending on the effective date of this Act if the district is a party to the litigation. SECTION 6. (a) States that the proper and legal notice of the intention to introduce this Act, setting forth its general substance, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and other laws of this state, including the governor, who has submitted the notice and Act to the Texas Natural Resource Conservation Commission (commission). (b) States that the commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (c) States that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 7. Emergency clause. Effective date: upon passage.