SRC-TAG, TAG C.S.S.B. 624 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 624
By: Lindsay
Natural Resources
4/3/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, 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
construction of facilities.  C.S.S.B. 624 requires voter approval before
taxbacked bonds may be issued for the development of  recreational
facilities.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Commission on
Environmental Quality in SECTION 5 (Section 49.466, Water Code) of this
bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 49.001(a)(10), Water Code, to redefine
"district facility." 

SECTION 2.  Amends Section 49.461(a), Water Code, to delete text
referencing the legislature's authority.  Makes nonsubstantive changes.  

SECTION 3.  Amends Section 49.463, Water Code, as follows:

Sec.  49.463.  AUTHORIZATION OF RECREATIONAL FACILITIES.  Provides that a
district is created for the purpose of financing recreational facilities
for the people in the district, in addition to developing and maintaining
such facilities and the other purposes for which a district is created.
Makes a nonsubstantive change. 

SECTION 4.  Amends Section 49.464, Water Code, by amending Subsections (a)
and (b) and adding Subsections (d)-(g), as follows: 

(a)  Authorizes a district to issue bonds supported by ad valorem taxes to
pay for the development  and maintenance of recreational facilities only
if the bonds are authorized by a  majority of votes held in the district,
for that purpose.  Requires outstanding principal amount of bonds, notes,
and other obligations issued to finance parks and recreational facilities
payable from any source, may not exceed an amount equal to one percent of
the value of the taxable property in the district as shown by the tax
rolls of the central appraisal district, at the time of the issuance of
the bonds, notes, and other obligations.  Deletes the prohibition
constraining a district from issuing such bonds.  Authorizes the board to
issue bonds payable solely from revenues by resolution or by order of the
board without an election.  Prohibits a district from issuing bonds
supported by ad valorem taxes to pay for the development and maintenance
of  indoor or outdoor swimming pools. 

  (b)  Deletes text referencing Subsection (a), as an exception to this
subsection. 

(d)  Requires the governing body of a district (board), by the 10th day
prior to an election to authorize the issuance of bonds for the
development and maintenance of recreational facilities, to file in the
district office for review by the public a park plan covering the land,
improvements, and equipment to be purchased or  constructed and their
estimated cost, together with maps, plats, drawings, and data fully
showing and explaining the park plan.  Provides that the park plan is not
part of the proposition to be voted on and the park plan does not create a
contract with the voters. 

(e)  Requires the notice of a bond election for the development and
maintenance of  recreational facilities to contain the proposition to be
voted on, including the estimate of the probable cost of design,
construction, purchase, acquisition, and incidental expenses connected
with the improvements and the issuance of bonds. 

(f)  Authorizes a bond election for the development and maintenance of
recreational facilities to be held on the same day as another district
election. Authorizes the board to call a bond election by separate
election order or as part of another election order.  Authorizes the board
to submit multiple purposes in a single proposition at an election. 

(g)  Authorizes the board to call a bond election for the development and
maintenance of recreational facilities as a result of an agreement to
annex additional territory into the district.  

SECTION 5.  Amends Chapter 49N, Water Code, by adding Section 49.466, as
follows: 

Section 49.466.  COMMISSION RULES.  (a)  Requires the Texas Commission on
Environmental Quality (TCEQ) to adopt rules regarding the provision and
financing of recreational facility funded through the issuance of bonds
supported by ad valorem taxes. 

(b)  Requires TCEQ rules to emphasize the primary goal of financing water,
sewer, and drainage facilities to serve the district; emphasize and
encourage the secondary goal of financing recreational facilities; and
encourage the conveyance of  land to be used for recreational facilities.  

SECTION 6.  Repealer: Section 49.461(b), Water Code (regarding policy and
purpose). 

            Repealer: Chapter 54(I), Water Code (regarding 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.   



SUMMARY OF COMMITTEE CHANGES 

Amends S.B. 624  in SECTION 4 Section 49.464(a), Water Code, by inserting
a sentence to require that the "outstanding principal amount of bonds,
notes, and other obligations issued to finance parks and recreational
facilities payable from any source, may not exceed an amount equal to one
percent of the value of the taxable property in the district as shown by
the tax rolls of the central appraisal district, at the time of the
issuance of the bonds, notes, and other obligations." 

Amends S.B. 624 in SECTION 5 of the bill, in proposed Section 49.466(a),
Water Code, by inserting "funded through the issuance of bonds that are
supported by ad valorem taxes" between "facilities" and the period.