HBA-RBT, NMO C.S.H.B. 3797 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3797 By: Hartnett Natural Resources 4/26/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, the Dallas County Utility and Reclamation District (district), located completely within the City of Irving, has an elected board of directors. Because the City of Irving is significantly increasing its financial commitment to the operation of the district, the district desires that the City Council of the City of Irving (city council) appoint its board of directors and subject directors to higher eligibility standards. C.S.H.B. 3797 requires the city council to appoint the district's five member board of directors, rather than the board standing for election. This bill also modifies director eligibility standards and makes certain other changes. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5, Chapter 628, Acts of the 68th Legislature, Regular Session, 1983, as follows: Sec. 5. Requires that the office of a director of the Dallas County Utility and Reclamation District (district), if the director ceases to possess the prescribed qualifications, be declared vacant by the board of directors and requires that the director's successor be appointed by the City Council of the City of Irving (city council), rather than the remaining directors. Requires each director be at least 18 years of age and possess one of four qualifications. Includes as two of those qualifications being an agent, employee, officer, or director of any individual, corporation, trust, or partnership that owns or leases real property within the district, or being a resident of the City of Irving. Requires that at least three of the five directors be qualified as directors under the provisions of Section 49.052(a) (relating to the disqualification of directors), Water Code, without consideration of exception. Requires the city council, beginning with the first day of October, 1999, to appoint three of the five directors for terms of four years and two of the directors for terms of two years. Requires that the directors whose terms expire, on the first day of October of all oddnumbered years, thereafter, be appointed by the city council, rather than elected at an election on the first Saturday in each May. Requires that the directors serve for a term of four years, rather than one year, and until their successors are appointed and take office. Deletes provision that provides that Section 50.026, Water Code, does not apply to the district. Authorizes the city council to remove and replace any of the directors appointed by it at any time without cause. Limits the liability of the City of Irving concerning the district. Requires that each director receive a per diem payment of $50 per regular and special board and committee meetings, rather than meeting. SECTION 2. Amends Section 14, Chapter 628, Acts of the 68th Legislature, Regular Session, 1983, to require the district to obtain City of Irving approval of its annual operation and maintenance budget. SECTION 3. Sets forth procedural findings. SECTION 4. Sets forth legislative findings. SECTION 5. Provides that Section 3 of this Act does not apply to an act, proceeding, election, bond, or obligation the validity of which is the subject of litigation that is pending on the effective date of this Act. SECTION 6. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original by redesignating SECTIONS 3 and 4 of the original to SECTIONS 4 and 3, respectively. The substitute differs from the original by replacing SECTION 5 of the original (severability clause) with a new SECTION 5 relating to pending litigation. The substitute differs from the original in SECTION 6 by replacing the short emergency clause of the original with the long emergency clause.