H.B. 3582 78(R)    BILL ANALYSIS


H.B. 3582
By: Quintanilla
Natural Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

In 1997, the Legislature created the Paseo del Este Municipal Utility
District to provide utilities in a timely, affordable manner. The
legislation provided that each district could divide into smaller
districts in order to facilitate the installation of water and sewer
utilities. H.B. 3582 outlines provisions, provides for the authorization
of bonds and the levy of taxes, and provides civil penalties relating to
the creation, administration, powers, duties, functions, operation, and
financing of the Paseo del Este Municipal Utility Districts No. 1, 2, 3,
4, 5, 6, 7, 8, and 9.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

ARTICLE I. GENERAL PROVISIONS

SECTION 1.01. DEFINITIONS. Defines "board", "county", and "district."

SECTION 1.02.  CREATION. Creates nine conservation and reclamation
district to be known as Paseo del Este Municipal Utility Districts No. 1,
2, 3, 4, 5, 6, 7, 8, and 9, each of which is a governmental agency and a
body politic and corporate. Provides that each district is created under
and is essential to accomplish the purposes of Section 59, Article XVI,
Texas Constitution. Provides that each district has all of the powers of a
municipal utility district provided under Chapter 54, Water Code, and as
is governed by Chapters 49 and 54, Water Code, unless otherwise provided
in this Act. 

SECTION 1.03. BOUNDARIES. Sets forth the territory of each district.

ARTICLE 2. ADMINISTRATIVE PROVISIONS

SECTION 2.01. BOARD. Requires each district is to be governed by and all
powers of each district to be exercised by a board of five directors
(board).  

SECTION 2.02. DIRECTOR ELIGIBILITY. Sets forth requirements for director
eligibility.  

SECTION 2.03. TERMS OF DIRECTORS; APPOINTMENT OF INITIAL DIRECTORS . Sets
forth the terms of the board of directors and appointment procedures for
initial directors.  

SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. Sets forth requirements
regarding the election of permanent directors. 

SECTION 2.05. QUALIFICATION OF DIRECTOR. Sets forth requirements regarding
the qualification of a director.  

SECTION 2.06. MEETINGS AND BOARD ACTIONS. Sets forth requirements and
outlines provisions regarding meetings and actions of the board.  

 SECTION 2.07. ORGANIZATION OF BOARD OF DIRECTORS. Sets forth requirements
regarding the organization of the board of directors.  

SECTION 2.08. CONFLICT OF INTEREST: CONTRACT. Provides that a director who
is financially interested in a contract proposed to be executed by the
board for the purchase of property or services or for the construction of
facilities shall disclose the interest to the board and may not vote on
the acceptance of the contract.  

SECTION 2.09. DISTRICT EMPLOYEES. Sets forth requirements regarding
district employees.  

SECTION 2.10. EMPLOYEE BONDS. Sets forth requirements regarding employee
bonds. 

SECTION 2.11. PRINCIPAL OFFICE. Sets forth requirements and provisions
regarding the maintenance of each district 's principal office.  

SECTION 2.12. RECORDS. Sets forth requirements regarding the storage of
records.  

SECTION 2.13. SUIT. Authorizes each district to sue and be sued in its
corporate name.  

ARTICLE 3. AUTHORITY OF DISTRICT

SECTION 3.01. POWERS AND DUTIES. Sets forth powers and duties of each
district .  

SECTION 3.02. DISTRICT RULES. Sets forth each district's power to adopt
rules. 

SECTION 3.03. INSPECTIONS AND INVESTIGATIONS.  In addition to the powers
conferred on it under Section 49.221, Water Code, authorizes each district
to enter public or private property in each district for the purpose of
inspecting and investigating conditions relating to its authorized
purposes under the same provisions and restrictions applicable to the
Texas Commission on Environmental Quality 

SECTION 3.04. HEARINGS AND ORDERS. Sets forth provisions relating to
hearings and orders of the board.  

SECTION 3.05. CIVIL PENALTY; INJUNCTION. Outlines provisions regarding a
civil penalty for a person in violation of a rule, permit, or order of
each district.  

SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS. Outlines
provisions regarding permits, contracts, and cooperative agreements.  

SECTION 3.07. FACILITIES. Outlines provisions regarding district
facilities.  

SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. Sets forth
requirements and outlines provisions regarding the acquisition and
disposition of property.  

SECTION 3.09. RELOCATION OF FACILITIES. Sets forth requirements regarding
the relocation of district facilities.  

ARTICLE 4. GENERAL FISCAL PROVISIONS

SECTION 4.01. DISBURSEMENT OF MONEY. Authorizes each district to disburse
money only by check, draft, order, or other instrument signed by the
person or persons authorized in each district's bylaws or by board
resolution.  

SECTION 4.02. FEES AND CHARGES. Authorizes each district to establish fees
and charges not to exceed the amounts necessary to enable each district to
fulfill the obligations imposed on it by this Act.  

 SECTION 4.03. LOANS AND GRANT. Sets forth provisions regarding loans and
grants.  

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

SECTION 4.05. DEPOSITORY BANKS. Sets forth requirements and outlines
provisions regarding the designation of depository banks by the board.  

ARTICLE 5. BOND AND TAX PROVISIONS

SECTION 5.01. TAX; REVENUE BONDS. Sets forth requirements and outlines
provisions regarding tax and revenue bonds.  

SECTION 5.02. BOND ANTICIPATION NOTES. Outlines provisions regarding the
issuance of bond anticipation notes by each district .  

SECTION 5.03. REFUNDING BONDS. Outlines provisions regarding the issuance
of refunding bonds by each district .  

SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. Provides that district
bond review and approval is governed by Subchapter F, Chapter 49, Water
Code.  

SECTION 5.05. BONDS ARE AUTHORIZED INVESTMENTS. Sets forth requirements
regarding bonds. 

SECTION 5.06. TAXATION. Outlines provisions and sets forth requirements
regarding taxation.  

SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY. Sets forth
requirements regarding assessment of property in each district for
taxation.  

ARTICLE 6. ADDITION OF LAND TO DISTRICT

SECTION 6.01. ANNEXATION. Authorizes additional territory to be included
in each district notwithstanding any other provision of law.  

SECTION 6.02. PETITION. Authorizes a land owner to file with the board a
petition requesting certain land be included in each district . Sets forth
requirements and outlines provisions regarding the filing of a petition.  

SECTION 6.03. NOTICE AND HEARING. Sets forth requirements regarding notice
and hearing for annexations.  

SECTION 6.04. ANNEXATION ORDER. Outlines provisions regarding an
annexation order.  

ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT 

SECTION 7.01. PETITION. Outlines provisions regarding a petition of a
landowner for exclusion of land from a district.  

SECTION 7.02. NOTICE AND HEARING. Sets forth requirements regarding notice
and hearing for annexation of land by a district.  

SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND. Sets forth
provisions  
regarding the effective date of an order excluding land. 

SECTION 7.04. PETITION FOR RATIFICATION ELECTION. Outlines provisions
regarding a petition for a ratification election regarding an annexation
by a district.  



 

ARTICLE 8. DIVISION OF DISTRICT

SECTION 8.01. CONDITIONS OF DIVISION. Outlines provisions regarding the
conditions of division of each district .  

SECTION 8.02. PROVISIONS RELATING TO NEW DISTRICTS. Sets forth
requirements for the district regarding a division and an election. 

SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. Outlines provisions
and sets forth requirements regarding the appointment and election of
directors of resulting districts.  

SECTION 8.04. PAYMENT OF DISTRICT DEBTS. Outlines provisions regarding the
payment of district debts.  

SECTION 8.05. AUTHORITY OF DISTRICTS RESULTING FROM A DIVISION.  Sets
forth the authority of resulting districts.  

SECTION 8.06. ASSUMPTION OF OBLIGATIONS. Sets forth requirements and
outlines provisions regarding the assumption of obligations by resulting
districts.  

SECTION 8.07. NOTICE TO TEXAS COMMISSION ON ENVIRONMENTAL QUALITY.
Requires the original district that confirms a plan for division to
provide written notice of such plan to the Texas Commission on
Environmental Quality within 30 days after a division election. 

ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT

SECTION 9.01. ANNEXATION. Sets forth requirements regarding annexation of
a district by a municipality. 

ARTICLE 10. AFFORDABLE HOUSING

SECTION 10.01. Outlines provisions regarding the development of affordable
housing in the districts. Defines "affordable housing."  

ARTICLE 11. MISCELLANEOUS PROVISIONS

SECTION 11.01. TAX EXEMPTION. Outlines provisions regarding tax exemption.

SECTION 11.02. INITIAL ELECTION. Notwithstanding Section 2.04 of this Act,
requires each district to hold its first election for permanent directors
on the first Saturday in May of the first evennumbered year after which
there are registered voters in a district.  

SECTION 11.03. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. Sets forth
findings relating to procedural requirements. 

SECTION 11.04. Severability clause.

SECTION 11.05. VALIDATION. Validates actions of governmental entities
taken by or on behalf of the original district and the districts. 

SECTION 11.06. DISSOLUTION OF ORIGINAL DISTRICT; REPEAL. Sets forth
requirements to dissolve the original district and repeals Chapter 443,
Acts of the 75th Legislature, Regular Session upon dissolution of the
original district. 

SECTION 11.07. EFFECTIVE DATE. September 1, 2003



 


EFFECTIVE DATE

September 1, 2003