SRC-PNG H.B. 2956 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2956
76R11635 SMJ-FBy: Solomons (Carona)
Natural Resources
5/11/1999
Engrossed


DIGEST 

In 1995, the City of Lewisville entered into contracts with two fresh water
supply districts which encompass 2600 acres within the city's
extraterritorial jurisdiction and with the owners of the land. Pursuant to
these contracts, the voters in one fresh water supply district voted in a
tax, authorized by Section 49.108, Water Code, to make payments to the City
of Lewisville, and the city issued bonds to finance water, sewer, drainage,
and road improvements.  In 1997, the 75th Legislature enacted legislation
adding Subsection (e) to Section 49.108, which sets forth the procedure for
general law district contract elections.  Subsection (e) requires certain
districts to obtain approval from the executive director of the Texas
Natural Resource Conservation Commission (TNRCC) before entering into an
obligation under this section to collect tax for debt that exceeds three
years.  Section 49.108(e) and the subsequent regulations promulgated by
TNRCC relating to that subsection have altered the economics of the
contractual agreements between the City of Lewisville, the fresh water
supply districts, and the landowners.  This bill would provide that certain
fresh water supply districts under certain conditions have the right to
conduct contract elections without the required approval as set out in
Section 49.108(e), Water Code. 

PURPOSE

As proposed, H.B. 2956 provides that certain fresh water supply districts
under certain conditions have the right to conduct contract elections
without the required approval as set out in Section 49.108(e), Water Code. 

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 53.029, Water Code, by adding Subsection (e), to
provide that a district covered by this section has the right to conduct
contract elections in the manner set forth in Sections 49.108(a)-(d), Water
Code, without the approval set forth in Section 49.108(e), if all land that
would be subject to the contract election was in the boundaries of a
district covered by this section that was party to an agreement with a
municipality before September 1, 1997, calling for the issuance of district
bonds for road or bridge improvements, and the contract is approved by the
municipality that is a party to the agreement. 

SECTION 2. Emergency clause.
  Effective date: upon passage.