S.B. 5 78(R)    BILL ANALYSIS


S.B. 5
By: Averitt
Natural Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the Johnson County Rural Water Supply Corporation (JCRWSC)
provides water service within Johnson, Tarrant, Ellis, and Hill counties.
JCRWSC is interested in becoming a special utility district, primarily to
avail itself of the favorable and expanded opportunities for financing and
tax exemption.  S.B. 5 creates a conservation and reclamation district
known as the Johnson County Special Utility 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.CREATION.  Creates a conservation and reclamation district in
Johnson, Hill, Ellis, and Tarrant counties to be knows as the Johnson
County Special Utility District. 

SECTION 2. DEFINITION.  Stipulates that "district" in this Act, means the
Johnson County Special Utility District.   

SECTION 3. BOUNDARIES.  Establishes the exact boundaries of the district.
 
SECTION 4.FINDINGS RELATING TO BOUNDARIES. States that the legislature
finds that the boundaries and field notes of the district form a closure,
and that a mistake in the notes or in copying the notes in the legislative
process does not effect the organization, existence, or validity of the
district. 

SECTION 5.FINDING OF BENEFIT.  States that the legislature finds 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 the powers allotted, and the district
is created to serve a public use and benefit. 

SECTION 6.POWERS.  Grants this district all of the rights, powers,
privileges, authority, functions, and duties provided by this state
applicable to special utility districts, excepting special limitations
relating to certain water services.  

SECTION 7.REGULATORY CONFLICTS.   States that if a municipality asserts
regulatory authority over any geographic area lying within the
jurisdiction of the district, the regulation of the municipality shall
control over that of the district in the event of a regulatory conflict
with the district.  This section is not applicable to potable water
quality standards or to disputes relating to retail water utility service
areas. 

SECTION 8.BOARD OF DIRECTORS. States that this district is to be governed
by a board of 5 to 11 directors with 9 initial directors.  Directs
temporary directors to serve until initial directors are elected, and
initial directors are to serve until permanent directors are elected. 

 SECTION 9.TEMPORARY BOARD OF DIRECTORS.  Names the temporary board of
directors and directs them to execute their official bonds and take their
official oath of office. Sets forth provisions for filling the vacancy of
a temporary director. 

SECTION 10.CONFIRMATION AND INITIAL DIRECTORS' ELECTION.  Sets forth
provisions for the election of an initial board of directors by the
temporary board of directors. Requires the initial board of directors to
file with the TCEQ an order canvassing the confirmation election returns
no later than 30 days after the election.  Upon a successful confirmation
election, the assets, debts, and contractual right and obligations of
Johnson County Rural Water Supply Corporation shall be transferred to the
district.  Upon successful confirmation and dissolution, a Certificate of
Convenience and Necessity shall be issued by TCEQ to the district.   

SECTION 11.ADOPTING RULES.  Allows the district to adopt and enforce
reasonable rules that fall withing the district's statutory authority. 

SECTION 12.FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.  States that all
necessary procedural requirements for the creation of the district have
been accomplished.   

SECTION 13.Effective date: upon passage or September 1, 2003.


EFFECTIVE DATE

Upon passage if the necessary votes are received, or September 1, 2003.