SRC-MWN H.B. 2571 77(R)BILL ANALYSIS


Senate Research CenterH.B. 2571
By: McReynolds (Staples)
Natural Resources
5/10/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

The Wildwood community, located in the southern part of Angelina County,
lacks a basic infrastructure, and most of its residents have low income
levels. The Wildwood community is currently in need of a sewer system, but
its tax base is not sufficient to provide an adequate system. This
community would qualify for a combination grant and low interest loan from
the United States Department of Agriculture/Rural Development to install
this sewer system, but the community must have a governmental entity with
taxing authority before it can receive such funds. H.B.2571 creates a water
control and improvement district in Angelina County to be a governmental
taxing authority.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Angelina County Water
Control and Improvement District No. 4 in SECTIONS 3.02 and 3.06 of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. 1.01. CREATION. Sets forth provisions regarding the creation of
the Angelina County Water Control and Improvement District No. 4. 

SECTION 1.02. DEFINITIONS. Defines "board," "commission," "director,"
"disposal system," "district," "local government," "person," "pollution,"
"system," "treatment facility," "waste," and "water." 

SECTION 1.03. BOUNDARIES. Sets forth provisions regarding the boundaries of
the Angelina County Water Control and Improvement District No. 4.
(district). 

SECTION 1.04. FINDINGS RELATIVE TO BOUNDARIES. Provides that the findings
of the boundaries and field notes of the district form a closure. Provides
that any mistakes in the field notes does not prohibit the district from
performing certain acts. 

SECTION 1.05. FINDING OF BENEFIT.  Provides that the district is created to
serve a public use and benefit. 

ARTICLE 2. ADMINISTRATIVE PROVISIONS

SECTION 2.01. BOARD OF DIRECTORS. Sets forth the composition, terms, and
eligibility of the district's board of directors and provides for the
filing of a board vacancy. 

SECTION 2.02. TEMPORARY DIRECTORS. Sets forth provisions regarding the
composition of the temporary board of directors. 

SECTION 2.03. CONFIRMATION AND INITIAL DIRECTORS' ELECTION. Sets forth
provisions regarding the confirmation and initial directors' election. 

 SECTION 2.04. ELECTION OF DIRECTORS. Requires an election to be held for
the election of directors. 

SECTION 2.05. MEETINGS AND ACTIONS OF THE BOARD. Sets forth provisions
regarding meetings and actions of the board. 

SECTION 2.06. ORGANIZATION OF BOARD. Sets forth provisions regarding the
organization of the board. 

SECTION 2.07. INTEREST IN CONTRACT. Requires a director, if the director is
financially interested in a certain contract, to disclose the interest to
the board and to not vote on acceptance of the contract. 

SECTION 2.08. DIRECTORS' COMPENSATION. Provides that a director is entitled
to certain compensation. 

SECTION 2.09. GENERAL MANAGER. Authorizes the board to hire a general
manger to perform certain duties. 

SECTION 2.10. EMPLOYEE BONDS. Requires certain persons to execute a
fidelity bond in an amount determined by the board and in a form and with a
surety approved by the board. 

SECTION 2.11. PRINCIPAL OFFICE. Requires the district to maintain its
principal office at any place in Angelina County designated by the board. 

SECTION 2.12. RECORDS. Requires the district to keep certain records.

SECTION 2.13. SEAL. Requires the district to adopt a seal.

SECTION 2.14. SUIT. Authorizes the district to sue and be sued.

ARTICLE 3. POWERS AND DUTIES. 

SECTION 3.01. GENERAL POWERS AND DUTIES. Sets forth the district's powers
and duties. 

SECTION 3.02. DISTRICT RULES. Requires the district to adopt and enforce
rules. Requires the district to print its rules and furnish copies of the
rules to certain persons. Requires certain rules to be consisted within no
more stringent than state or federal requirements. 

SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. Authorizes the district to
inspect and investigate certain conditions in the district's territory. 

SECTION 3.04. CIVIL PENALTY; INJUNCTION. Authorizes the district to sue for
certain reasons. 

SECTION 3.05. COURT REVIEW. Sets forth conditions and procedures pertaining
to court review.  

SECTION 3.06. SEPTIC TANKS. Authorizes the district by rule, under certain
conditions, to take certain actions regarding septic tanks. 

SECTION 3.07. ACQUISITION, CONSTRUCTION, AND OPERATION OF SYSTEMS.
Authorizes the district to perform certain procedures. 

SECTION 3.08. SYSTEM CONTRACTS. Sets forth provisions regarding the
district contracting for the treatment or disposal of water, wastewater,
drainage, or waste from any person in the district.   

 SECTION 3.09. EMINENT DOMAIN. Authorizes the district to exercise the
power of eminent domain to acquire property in Angelina County. 

SECTION 3.10. RELOCATION OF FACILITIES. Requires the district to pay the
cost of certain actions so as to provide comparable replacement of any
replaced facility, less the replaced facility's net salvage value. 

SECTION 3.11. USE OF PUBLIC EASEMENTS. Sets forth provisions regarding the
district utilizing public easements. 

SECTION 3.12. ADDITION OF TERRITORY. Authorizes the district to annex
territory. 

SECTION 3.13. ACQUISITION AND DISPOSITION OF PROPERTY. Authorizes the
district to acquire and dispose of certain properties. 

SECTION 3.14. FACILITIES. Authorizes the district to perform certain
procedures for any facility necessary or convenient to the exercise of its
powers, rights, duties, or functions. 

SECTION 3.15. CONTRACTS. Authorizes the district to make contracts under
certain conditions. 

SECTION 3.16. COOPERATIVE AGREEMENTS. Authorizes the district to enter into
cooperative agreements with certain entities for certain purposes. 

ARTICLE 4. GENERAL FISCAL PROVISIONS

SECTION 4.01. DISBURSEMENT OF MONEY. Authorizes the district to disburse
money only by certain instruments signed by certain authorized persons. 

SECTION 4.02. FEES AND CHARGES. Authorizes the district to establish
certain fees and charges. 

SECTION 4.03. LOANS AND GRANTS. Authorizes the district to borrow money and
accept gifts from certain sources for corporate purposes. Provides that
information of the source, amount, and any restriction on expenditure of
money the district accepts is public information. 

SECTION 4.04. FISCAL YEAR. Requires the board to establish the district's
fiscal year. 

SECTION 4.05. INDEPENDENT AUDIT AND REPORT. Requires an independent audit
and report to be performed annually by certain persons. 

SECTION 4.06. DEPOSITORY BANKS. Requires the board to designate one or more
banks to be the depository for the district's money under certain
restrictions. 

ARTICLE 5. BONDS AND TAXES

SECTION 5.01. REVENUE BONDS. Authorizes the district to issue bonds at
certain rates and conditions. 

SECTION 5.02. REFUNDING BONDS. Authorizes the district to issue refunding
bonds under certain conditions. 

SECTION 5.03. APPROVAL AND REGISTRATION OF BONDS. Sets forth provisions
regarding the approval and registration of bonds by the district. 

SECTION 5.04. AUTHORIZED INVESTMENTS. Provides that the bonds and refunding
bonds of the district meet certain conditions. 
 
SECTION 5.05. AD VALOREM TAXATION. Provides that the district has the power
to impose ad valorem taxes. 

ARTICLE 6. MISCELLANEOUS PROVISIONS

SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Provides that
proper and legal notice of the intention of this Act has been published and
furnished to certain persons. 

SECTION 6.02. EXISTING COUNTIES, RIVER AUTHORITIES, AND UNDERGROUND WATER
CONSERVATION DISTRICTS. Provides that this Act does not impede the
jurisdiction of a river authority in existence on the effective date of
this Act, except that such a river authority is prohibited from imposing or
applying any regulatory ordinance, rule, or regulation within the district
without the agreement of the district. 

SECTION 6.03. SEVERABILITY. Sets forth provisions regarding the
severability of this Act. 

SECTION 6.04. EFFECTIVE DATE. upon passage or September 1, 2001.  

SUMMARY OF COMMITTEE CHANGES

SECTION 3.02. Adds new proposed Subsection (c), regarding consistency and
stringency of rules adopted by the district.