SRC-JLB H.B. 1832 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1832
78R7123 RCJ-DBy: Harper-Brown (Shapiro)
Intergovernmental Relations
5/5/2003
Engrossed


DIGEST AND PURPOSE 

Currently, the Dallas County Utility and Reclamation District (DCURD) is a
special law water district initially created by the legislature effective
February 1, 1984.  DCURD is located wholly within the City of Irving and
serves primarily the commercial areas of the Las Colinas development.  In
1999, the legislature amended DCURD's enabling legislation to provide that
its 5-member board be appointed by the Irving City Council to serve 4-year
staggered terms and that its annual operating budget be approved by the
Irving City Council.  The implementation of the 1999 amendments caused the
city's auditors to determine that DCURD had become a component unit of the
city and that DCURD's significant annual audit had to be included in the
city's annual audit, which increased the cost of the city's audit by more
than $30,000 annually.   

The city council passed a resolution asking DCURD to seek three amendments
to its enabling legislation to cause DCURD to no longer to be considered a
component unit of the city under the general accounting requirements.
DCURD is audited by an independent accounting firm and has always filed
its annual audit with the Texas Commission on Environmental Quality and
its predecessors. 

H.B. 1832 eliminates the ability of the city to remove and replace the
DCURD's directors at any time without cause;  eliminates the requirement
that the city approve the DCURD's annual operation and maintenance budget;
and eliminates the ability of the city to abolish DCURD unilaterally. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 5, Chapter 628, Acts of the 68th Legislature,
Regular Session, 1983, as follows: 
 
Sec. 5.  Deletes text authorizing the City of Irving City Council to
remove and replace any Dallas County Utility and Reclamation District
(DCURD) director it appoints at any time without cause and make a
conforming change. 

SECTION 2.  Amends Section 14, Chapter 628, Acts of the 68th Legislature,
Regular Session, 1983, as follows: 
 
Sec. 14.  Requires DCURD to obtain the approval of the City of Irving in
the form of a city council resolution as a condition precedent to the
annexation of any additional land. Deletes text regarding the approval of
DCURD's annual operation and maintenance budget. 

SECTION 3.  Amends Section 15, Chapter 628, Acts of the 68th Legislature,
Regular Session, 1983, as follows: 
 
Sec. 15.  Authorizes DCURD to be abolished and dissolved on a specified
effective date  by the mutual consent of a three-fourths majority of
DCURD's board of directors and a three-fourths majority of the members of
the city council of the City of Irving.  Provides that in the event of
those consents, on the agreed effective date, DCURD is abolished and
dissolved and the City of Irving owns all the property and assets of
DCURD;  assumes all the debts, liabilities, and obligations of DCURD;  and
performs all the functions of DCURD, including the provision of services.
Deletes text requiring the City of Irving to have certain rights and
duties. 

SECTION 4.  (a)  Provides that certain actions of DCURD are validated and
confirmed as if the actions had been done as authorized by law. 

 (b)  Provides that this Act does not apply to certain acts, rules, and
matters. 

SECTION 5.  Effective date:  upon passage or September 1, 2003.