SRC-JJJ H.B. 2332 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2332
76R9775 MI-FBy: Lewis, Ron (Armbrister)
Natural Resources
4/28/1999
Engrossed


DIGEST 

Existing law regarding the administration and consolidation of drainage
districts may provide certain inconsistencies.  H.B. 2332 would establish
conditions regarding the administration and consolidation of drainage
districts.   

PURPOSE

As proposed, H.B. 2332 establishes conditions regarding the administration
and consolidation of drainage districts.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 56.061, Water Code, to provide that a drainage
district (district) is governed by a board of three directors (board)
unless special law provides otherwise.  Requires the commissioners court to
appoint three directors to serve until permanent directors are elected,
when a district is established.   

SECTION 2.  Amends Section 56.064(a), Water Code, to establish conditions
regarding an election or the petition for an election of district
directors, for any district in which special law requires that directors be
appointed, except when the special law otherwise provides. 

SECTION 3.  Amends Section 56.0641, Water Code, to provide that in those
sections referred to in Subsection (b), rather than Subsection (e) of
Section 56.064, until otherwise ordered by the board of directors, the
three persons receiving the highest number of votes at each election are
elected. Makes conforming changes.   

SECTION 4.  Amends Section 56.0642, Water Code, to make a conforming change.

SECTION 5.  Amends Section 56.082(a), Water Code, to provide that the
commissioners court has exclusive jurisdiction to hear and determine all
proceedings of a district during its organization, rather than after it is
organized. 

SECTION 6.  Amends Section 56.123(a), Water Code, to establish that after
the board, rather than the commissioners court, authorizes bonds to be
issued, the board may make certain changes. 

SECTION 7.  Amends Sections 56.124(a) and (b), Water Code, to make
conforming changes. 

SECTION 8.  Amends Section 56.125(b), Water Code, to make conforming
changes. 

SECTION 9.  Amends Section 56.135, Water Code, to make conforming changes.

SECTION 10.  Amends Section 56.141(c), Water Code, to make conforming
changes. 

SECTION 11.  Amends Section 56.142, Water Code, to make conforming changes. 
 
SECTION 12.  Amends Chapter 56K, Water Code, as follows:

SUBCHAPTER K.  CONSOLIDATION OF DISTRICTS

Sec. 56.801.  CONSOLIDATION OF DISTRICTS.  Authorizes two or more districts
governed by this chapter to consolidate into one district.  Deletes
existing Sections 56.801, 56.802, 56.803, and 56.804. 

Sec. 56.802.  CONSOLIDATION BY AGREEMENT.  Authorizes the boards of the
districts proposed to be consolidated to initiate consolidation.  Sets
forth requirements for the board of each district regarding the terms and
conditions of consolidation. 

Sec. 56.803.  CONSOLIDATION BY PETITION.  Authorizes consolidation to be
initiated by petition requesting that the districts be consolidated.
Requires the petition to be signed by a certain number of qualified voters,
and requires one petition for each district proposed to be consolidated.
Authorizes a qualified voter to sign only one petition for the district in
which the voter resides.  Requires the petition to be filed simultaneously
with the secretary of each district proposed to be consolidated.  Requires
a board to determine whether the petition presented to that district meets
the necessary requirements and to notify the board of each other district
proposed to be consolidated whether the petitions meet the requirements.
Sets forth the requirements for each board if the petitions meet all
necessary requirements. 

Sec. 56.804.  TIME OF HOLDING ELECTION; COST OF ELECTION.  Requires the
election to be held on a uniform election day in January or May.  Requires
the election date selected to provide sufficient time for necessary
preparation regarding voter registration. Provides that each district is
responsible for holding the election in that district and for the cost of
the election in that district. 

 Sec. 56.805.  BALLOT.  Sets forth necessary language to be included in the
ballot. 

Sec. 56.806.  CANVASS; RESULT.  Requires each board to canvass the returns
of the election held in that district.  Requires the board of each district
to publish the results for that district.  Provides that if the majority of
votes cast are in favor of consolidation, the districts become one and are
governed as such.  Provides that if the proposition does not carry, another
election may not be held for the same purpose for at least two years after
the results of the election are declared. 
  
Sec. 56.807.  GOVERNING CONSOLIDATED DISTRICTS; ELECTION OF DIRECTORS.
Provides that when two or more districts are consolidated, they become one
district and are governed as one district.  Requires the directors of each
district to continue to act jointly as directors of the consolidated
district, until the directors of the consolidated district are elected and
qualify.  Prohibits a vacancy, occurring before the permanent directors are
elected, on the board to remain vacant unless the number of members falls
below three. Requires a vacancy, if the number of members fall below three,
to be filled in the same manner as other vacancies on elected boards.
Requires the joint board to immediately order an election of directors of
the consolidated district to be held on the next available uniform election
date.  Authorizes the consolidation agreement to provide that the directors
of the original districts continue to act jointly as directors of the
consolidated district until the next election.  Authorizes the agreement to
name persons to serve as directors of the consolidated district until the
next election if all directors of the original districts agree to resign.
Requires the joint board of the consolidated district to approve the bond
of each new director.  Sets forth conditions regarding the operation of the
consolidated district. 

Sec. 56.808.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  Provides that title
to all property of the consolidating districts vests in the consolidating
district.  Establishes that the consolidated district assumes and is liable
for the outstanding indebtedness of the consolidating districts.  Provides
that all enforceable contract rights held or owned by a consolidating
district are owned and held by the consolidated district.  Establishes that
the  consolidated district is liable for contractual obligations of a
consolidating district. 
   
Sec. 56.809.  UNEXPENED BOND PROCEEDS.  Authorizes any money that has not
been spent as a result of district consolidation to be spent by the
consolidated district only on the project for which the bonds were issued. 

Sec. 56.810.  FISCAL YEAR; BUDGET.  Sets forth requirements regarding the
establishment of a fiscal year, audits of each district and of the
consolidated district, and the establishment of a budget for the
consolidated district.  Deletes existing text regarding the consolidation
of a district. 

SECTION 13.  Repealers: Sections 56.070, 56.071, 56.072, 56.072, 56.073,
56.112, 56.117, 56.118, 56.127, and 56.181, Water Code (regarding
treasurer, treasurer's bond, treasurer's compensation, tax assessor and
collector, report of the board, duty to construct improvements,
right-of-way, maintenance report, and duties of treasurer). 

SECTION 14.  Effective date: September 1, 1999.

SECTION 15.  Emergency clause.