C.S.H.B. 3608 78(R)    BILL ANALYSIS


C.S.H.B. 3608
By: Krusee
Natural Resources
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current Texas law provides for the creation of conservation and
reclamation districts which are authorized to incur indebtedness to
provide permanent improvements and to levy taxes for the maintenance and
operation of such improvements and for the repayment of such indebtedness.
As proposed, C.S.H.B. 3608 creates a conservation and reclamation district
to be known as the Northeast Williamson County Municipal Utility District
(district), of Williamson County, Texas. The land to be located within the
district will be developed into a single family residential  development
and therefore, water, sewer, and drainage services need to be secured.  It
is necessary to create the municipal utility district under Chapters 49
(Provisions Applicable to All Districts) and 54 (Municipal Utility
Districts), Water Code, in order to purchase, acquire, or construct
facilities for such services to serve the future occupants of the land
utilizing tax exempt bonds.  C.S.H.B. 3608 provides regulations regarding
the creation, administration, powers, duties, operation, and financing of
the district 

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

SECTION 1.  DEFINITION.  Defines "board," "commission" and "district."

SECTION 2. CREATION.  Creates a conservation and reclamation district, to
be known as  the Northeast Williamson County Municipal Utility District of
Williamson County, Texas, subject to approval at a confirmation election
under Section 12 of this Act.  Provides that the district is a
governmental agency and a body politic and corporate.  Provides that the
district is created under, and is essential to accomplish the purposes, of
Article XVI, Section 59, of the Texas Constitution. 

SECTION 3.  AUTHORITY FOR CREATION. The district is created under and is
essential to Article XVI, Section 59, of the Texas Constitution. 

SECTION 4. FINDING OF BENEFIT AND PUBLIC PURPOSE.  Creates the district to
serve a public use and benefit. Provides that all of the land and other
property included within the boundaries of the district will be benefitted
by the works and projects that are to be accomplished by the district
under powers conferred by Article XVI, Section 59, of the Texas
Constitution.  

SECTION 5. BOUNDARIES.  Provides that the district includes the territory
contained within a certain area. 

SECTION 6.  FINDINGS RELATING TO BOUNDARIES.  Provides that the
legislature finds that the boundaries and field notes of the district form
a closure.  Provides that a mistake in the field notes or in copying the
field notes in the legislative process does not affect the organization,
existence, or validity of the district, the validity of its bonds, notes,
or indebtedness, the right of the district to levy and collect taxes, or
the legality or operation of the district or its governing body.  
 
SECTION  7.  GENERAL POWERS.  Provides that the district has all of the
rights, powers, privileges, authority, functions, and duties provided by
the general law of this state, including  Chapters 30, 49, 50 and 54,
Water Code, applicable to municipal utility districts created under
Article XVI, Section 59, of the Texas Constitution. Provides that the
rights, powers, privileges, authority, functions, and duties of the
district are subject to the continuing right of supervision of the state
to be exercised by and through the Texas Commission on Environmental
Quality (TCEQ).  

SECTION 8. APPLICABILITY OF OTHER LAW. This Act prevails over any
provision of general law that is in conflict with this Act. 

SECTION 9.  BOARD OF DIRECTORS.  Provides that the district is governed by
a board of five directors. 

SECTION 10.  APPOINTMENT OF TEMPORARY DIRECTORS. Appoints the five
temporary directors.  

SECTION 11. METHOD OF ELECTING DIRECTORS. Directors shall be elected at
large. 

SECTION 12. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.  Requires the
temporary board of directors to call and hold an election to confirm
establishment of the district and to elect five permanent directors as
provided by Section 49.102, Water Code.  Provides that Section 41.001(a)
of the Election Code does not apply to a confirmation and directors'
election held as provided by this section.  
 
SECTION 13.  ELECTION OF DIRECTORS. Sets forth requirements regarding the
election of permanent directors.  

SECTION 14. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.  Provides that
the  
proper and legal notice of the intention to introduce this Act, setting
forth the general substance of  
this Act, has been published as provided by law, and the notice and a copy
of this Act have been furnished to all persons, agencies, officials, or
entities to which they are required to be furnished by the constitution
and other laws of this state, including the governor, who has submitted
the notice and Act to TCEQ.  Provides that TCEQ has filed its
recommendations relating to this Act with the governor, lieutenant
governor, and speaker of the house of representatives within the required
time.  Provides that all requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect to the
notice, introduction, and passage of this Act are fulfilled and
accomplished. 

SECTION 15.  EFFECTIVE DATE.

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect on September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute changes the name of the district from the Northeast
Williamson County Utility District to the Northeast Williamson County
Municipal Utility District.  The substitute also provides names of the
individuals on the temporary board of directors.