H.B. 2477 78(R)    BILL ANALYSIS


H.B. 2477
By: Callegari
State Cultural and Recreational Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Texas Constitution prevents the use of water district tax receipts for
the development of parks and recreational facilities.  Consequently,
districts, are limited in their ability to pay for the development and
maintenance of such facilities.  House Bill 2477 requires districts to
gain voter approval before tax-backed bonds may be issued for the
development of recreational facilities. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Commission on Environmental Quality (TCEQ) in SECTION
5 (Section 49.466, Water Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the Water Code to include recreational facility in the
definition of district facility. 

SECTION 2.  Amends the Water Code by removing language referencing the
Legislature's authority to authorize districts to develop and maintain
parks and recreational facilities. 

SECTION 3. Amends the Water Code by expanding the purpose of a district to
include the financing of recreational facilities for people in the
district. 

SECTION 4. Amends the Water Code by  authorizing a district to issue bonds
for the development and maintenance of recreational facilities only if the
bonds are authorized by a majority of votes held in the district.
Authorizes a district to issue bonds in the absence of an election if they
are only payable by revenues by resolution or from an order of the board.
Prohibits a district from issuing bonds supported by ad valorem taxes to
pay for the development and maintenance of swimming pools.  Requires the
district's board to file a park plan in the district office no later than
ten days before an election to authorize the issuance of bonds for the
development and maintenance of recreational facilities.  The required plan
must include maps, plats, drawings, and a description of the land,
improvements, facilities, and equipment to be purchased or constructed.
Requires that the notice of a bond election include the proposition to be
voted on and an estimate of the proposition's cost.  Authorizes district's
bond elections to be held on the same day as other elections or
separately. Authorizes the board to submit multiple purposes in a single
proposition at an election.  Authorizes a district's board to call a bond
election for the development and maintenance of recreational facilities as
a result of an agreement to annex territory into the district. 

SECTION 5.  Amends the Water Code, by authorizing the Texas Commission on
Environmental Quality to adopt rules regarding districts' provision and
financing of recreational facilities. 

SECTION 6.  Repeals Section 49.461(b), Water Code, providing districts
authority to develop and maintain recreational facilities.  Repeals
Subchapter I, Chapter 54, Water Code, authorizing municipal utility
districts (MUDs) to develop and maintain recreational facilities. 

SECTION 7.  Provides that this Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, relating to the provision of parks and recreational
facilities by certain conservation and reclamation districts is approved
by the voters. Provides that if that amendment is not approved by the
voters, this Act has no effect. 
 

EFFECTIVE DATE

Effective on November 4, 2003, if the constitutional amendment proposed by
the 78th Legislature, Regular Session 2003, relating to the provision of
parks and recreational facilities by certain conservation and reclamation
districts is approved by the voters.