SRC-TJG S.B. 1304 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1304
78R8317 SGA-DBy: Madla
Natural Resources
4/2/2003
As Filed


DIGEST AND PURPOSE 

Currently, potential property buyers have limited resources to determine
whether land is included in a special district.  Notice of the existence
of a district is not required to be given until the confirmation election
of the district.  Also, a special district that is permitted to convert
into another type of district is able to do so solely upon the order of
this district's governing body, unless the district is trying to convert
into a municipal utility district.  In addition, certain districts are
allowed to divide upon approval by the qualified voters in the district.
As proposed, S.B. 1304 requires a certified copy of order creating a water
district to be recorded in the county deed records, requires certain
districts to obtain approval from the entity that would normally approve
the creation of these districts before converting, and requires not only a
vote by qualified voters before dividing, but also consent from the
creating entity. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 49.452(b), (c), and (d), Water Code, as
follows: 

(b) Requires the prescribed notice for districts located in whole or in
part in the extraterritorial jurisdiction of one or more home-rule
municipalities and not located within the corporate boundaries of a
municipality to be executed by the seller and to read in a certain manner.
Adds contact information to the information placed in the appropriate
space.  Makes a nonsubstantive change. 

(c)-(d) Make conforming changes.

SECTION 2.  Amends Section 51.021, Water Code, by adding Subsection (d) to
require the commissioners court or the Texas Commission on Environmental
Quality (TCEQ), as appropriate, within 15 days after the date of the
order, to file with the county clerk, for filing in the county deed
records of each county in which a part of the district is located, the
order creating the water control or improvement district (district), if
the commissioners court or TCEQ grants the petition requesting the
creation of a district. 

SECTION 3.  Amends Section 51.032(b), Water Code, to require a certified
copy of TCEQ's order granting a petition and naming the directors to be
filed within 15 days after the date of the order in the office of the
county clerk for filing in the county deed records of each county in which
a portion of the district is located.  Requires the filing to explain that
the order creating the district is required to be confirmed and ratified
by an election. 

SECTION 4.  Amends Section 51.040, Water Code, by amending Subsection (b)
and adding Subsection (c), as follows: 

(b) Requires the resolution to contain a list of powers the district
desires to retain after conversion and to request certain actions from the
commissioners court. 

 (c) Requires the district to file a copy of the resolution with the
commissioners court or TCEQ, as applicable. 

SECTION 5.  Amends Chapter 51B, Water Code, by adding Section 51.0402, as
follows: 

Sec. 51.0402.  SETTING OF DATE, TIME, AND PLACE OF CONVERSION HEARING.
Requires certain persons, as applicable, to set a date, time, and place
for a hearing on the conversion, promptly after the resolution requesting
conversion is filed. 

SECTION 6.  Amends Section 51.041(a), Water Code, to require notice of the
conversion hearing, rather than adoption of a resolution under Section
51.040 of this code, to be given by publishing notice, rather than the
resolution, in a newspaper with general circulation in the county or
counties in which the district is located. 

SECTION 7.  Amends Section 51.042, Water Code, as follows:

(a) Requires the commissioners court or TCEQ, rather than the governing
body of the district, as applicable, if on a hearing it finds that
conversion of the district into one operating under this chapter would
serve the best interest of the district and would be a benefit to the land
and property included in the district, to enter an order making this
finding and to include in the order a list of the powers to be retained by
the district after conversion that the commissioners court or TCEQ, as
applicable, approves.  Requires the order to also provide that conversion
is not final unless the voters, in the election provided by Section
51.0422, confirm the conversion of the district.  Deletes existing text
related to requiring the district to become a district operating under
this chapter. 

(b) Makes a conforming change.

(c) Provides that finding of the commissioners court or TCEQ, as
applicable, entered under this section are subject to appeal or review not
later than the 30th day after the date the order approving or denying the
conversation is entered into under this section. Deletes existing text
related to the finding of the governing body of a district being final and
not subject to appeal. 

SECTION 8.  Amends Chapter 51B, Water Code, by adding Section 51.0422, as
follows: 

Sec. 51.0422.  CONVERSION ELECTION.  (a) Requires the governing body of
the district to order an election to be held in the district to confirm
the conversion of the district, if the commissioners court or TCEQ, as
applicable, finds in favor of the conversion of the district. 

(b) Authorizes the conversion election to be held on the same day as any
other district election. 

(c)  Requires notice of a conversion election to state the day and each
place for holding the election and the proposition to be voted on. 

(d) Requires the ballots for a conversion election to be printed to
provided for voting for or against a certain proposition.  

(e) Requires the presiding judge of each polling place to deliver the
returns of the election to the governing body of the district, immediately
after the conversion election.  Requires the governing body to canvass the
returns and declare the results at the earliest practicable time. 

(f) Requires the governing body of the district to declare that the
district is converted into a district operating under this chapter and
enter the results in its minutes, if a majority of the votes cast in the
election favor the conversion of the district. 
 
(g) Requires the governing body of the district to file a copy of the
order canvassing the results of the conversion election with certain
persons. 

SECTION 9.  Amends Sections 51.044(a) and (b), Water Code, to make
conforming changes. 

SECTION 10.  Amends the heading to Section 51.749, Water Code, to read as
follows: 

Sec. 51.749.  APPROVAL OF DIVISION.

SECTION 11.  Amends Section 51.749, Water Code, by amending Subsection (a)
and adding Subsection (d), as follows: 

(a) Requires the board of directors of the district (board) to submit a
proposal for division to the entity that issued the order creating the
district for approval.  Requires the board, if the district was created by
an act of the legislature, to submit a proposal for division to TCEQ. 

(a-1) Created from existing text.  Requires the board, if the entity that
issued the order creating the district or TCEQ approves the division of
the district, to order an election to be held in the district to determine
whether the original district should be divided as proposed. 

(d) Requires the board of the original district, within 15 days after the
date of the election, to file with the county clerk, for filing in the
county deed records of each county in which a part of the district is
located, an order declaring the results of the election and dividing the
original district, if the division of the original district is approved by
a majority of the qualified voters of the district voting in the election. 

SECTION 12.  Amends Section 53.016, Water Code, to delete existing text
"immediately" referring to requiring certain persons to set a time and
place for a hearing on the petition by the commissioners court. 

SECTION 13.  Amends Section 53.019(a), Water Code, to authorizes any
person whose land is included in or would be affected by the creation of
the district to appear and contest the creation of the district and offer
testimony to show that the district is not necessary, would or would not
be a public utility or benefit to land in the district, and would or would
not be feasible or practicable, at the hearing on the petition.  Deletes
existing language related to sufficiency of the petition and all relative
testimony.  

SECTION 14.  Amends Chapter 53B, Water Code, by adding Section 53.0195, as
follows: 

Sec. 53.0195.  GRANTING OR REFUSING PETITION. (a) Requires the
commissioners court to grant the petition requesting the creation of a
district if it appears at the hearing that organization of the district as
requested is feasible and practicable, the land to be included and the
residents of the proposed district will be benefitted by the creation of
the district, there is a public necessity or need for the district, and
the creation of the district would further the public welfare. 
 
(b) Requires the commissioners court, if the commissioners court fails to
make the findings required by Subsection (a), to refuse to grant the
petition. 
 
(c) Authorizes the commissioners court to exclude those lands not to be
benefitted and requires the commissioners court to redefine the boundaries
of the proposed district to include only the land that will receive
benefits from the district, if the commissioners court finds that any of
the land sought to be included in the proposed district will not be
benefitted by inclusion in the district. 

 SECTION 15.  Amends Chapter 53b, Water Code, by adding Section 53.0196,
as follows: 

Sec. 53.0196.  FILING OF ORDER.  Requires the commissioners court, if the
commissioners court grants a petition requesting the creation of a
district, within 15 days after the date of the order, to file with the
county clerk, for filing in the county deed records of each county in
which a part of the district is located, the order creating the district.
Requires the filing to explain that the order creating the district is
required to be confirmed and ratified by an election. 

SECTION 16.  Amends Section 53.029(b), Water Code, to authorize a district
covered by this section to be divided into two new districts if certain
conditions apply.  Makes conforming and nonsubstantive changes.  Creates
new Subsection (b-1) from existing text. 

SECTION 17.  Amends Section 53.040, Water Code, to require the newly
elected supervisors in each new district to immediately file with the
county clerk, for filing in the county deed records of each county in
which a part of the district is located, an order declaring the results of
the election and dividing the original district. 

SECTION 18.  Amends Chapter 53, Water Code, by adding Subchapter G, as
follows: 

SUBCHAPTER G.  CONVERSION OF DISTRICTS

Sec. 53.231.  CONVERSION OF CERTAIN DISTRICTS INTO DISTRICTS OPERATING
UNDER THIS CHAPTER.  (a) Authorizes any water control and improvement
district created under Section 52, Article III (Counties, Cities or Other
Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), or
Section 59, Article XVI (Conservation and Development of Natural
Resources; Conservation and Reclamation of Districts), Texas Constitution,
to be converted to a district operating under this chapter. 
 
(b) Requires the governing body of a district that desires to convert into
a district operating under this chapter to adopt and enter in the minutes
of the governing body a resolution declaring that, in its judgment,
conversion into a fresh water supply district operating under this chapter
and under Section 59, Article XVI, Texas Constitution, would serve the
best interest of the district and would be a benefit to the land and
property included in the district. Requires the resolution to also request
the commissioners court to hold a hearing on the conversion of the
district if the district is located entirely within one county or TCEQ to
hold a hearing on the conversion of the district if the district includes
land in more than one county. 
 
(c) Requires the district to file a copy of the resolution with the
commissioners court or TCEQ, as applicable. 
 
Sec. 53.232.  SETTING OF DATE, TIME, AND PLACE OF CONVERSION HEARING.
Requires certain persons, as applicable, to set a date, time, and place
for a hearing on the conversion, promptly after the resolution requesting
conversion is filed. 

Sec. 53.233.  CONVERSION OF DISTRICT; NOTICE.  (a) Requires notice of the
conversion hearing to be given by publishing notice in a newspaper with
general circulation in the county or counties in which the district is
located. 
 
(b) Requires the notice to be published once a week for two consecutive
weeks with the first publication not less than 14 full days before the
time set for a hearing. 
 
(c) Requires the notice to state the time and place of the hearing, set
out the resolution in full, and notify all interested persons to appear
and offer testimony for or against the proposal contained in the
resolution. 
  
Sec. 53.234.  CONVERSION OF DISTRICT; FINDINGS.  (a) Requires the
commissioners court or TCEQ, if the commissioners court or TCEQ, as
applicable, on a hearing, finds that conversion of the district into one
operating under this chapter would serve the best interest of the district
and would be a benefit to the land and property included in the district,
to enter an order making this finding but providing that conversion is not
final unless the voters, in the election provided by Section 53.235,
confirm the conversion of the district. 

(b) Requires the commissioners court or TCEQ, if the commissioners court
or TCEQ, as applicable, finds that the conversion of the district would
not serve the best interest of the district and would not be a benefit to
the land and property included in the district, to enter an order against
conversion of the district into one operating under this chapter. 
 
(c) Provides that the findings of the commissioners court or TCEQ, as
applicable, entered under this section are subject to appeal or review not
later than the 30th day after the date the order approving or denying the
conversion is entered under this section. 
 
Sec. 53.235.  CONVERSION ELECTION.  (a)  Requires the governing body of
the district, if the commissioners court or TCEQ, if the commissioners
court or the commission, as applicable, finds in favor of the conversion
of the district, to order an election to be held in the district to
confirm the conversion of the district. 
 
(b) Authorizes a conversion election to be held on the same day as any
other district election. 
 
(c) Requires notice of a conversion election to state the day and each
place for holding the election and the proposition to be voted on. 
 
(d) Requires the ballots for a conversion election to be printed to
provide for voting for or against a certain proposition. 
 
(e) Requires the presiding judge of each polling place to deliver the
returns of the election to the governing body of the district immediately
after the conversion election.  Requires the governing body to canvass the
returns and declare the results at the earliest practicable time. 
 
(f) Requires the governing body of the district to declare that the
district is converted into a district operating under this chapter and
enter the results in its minutes if a majority of the votes cast in the
election favor the conversion of the district.  Requires the governing
body of the district to declare that the conversion of the district was
defeated and enter the results in its minutes if a majority of the votes
cast in the election are against the conversion of the district. 
 
(g) Requires the governing body of the district to file a copy of the
order canvassing the results of the conversion election with certain
persons if certain conditions apply. 
   
Sec. 53.236.  EFFECT OF CONVERSION.  Requires a district that converts
into a district operating under this chapter to be constituted a fresh
water supply district operating under and governed by this chapter, be a
conservation and reclamation district under Section 59, Article XVI, Texas
Constitution, and have and exercise all the powers, authority, functions,
and privileges provided in this chapter in the same manner and to the same
extent as if the district had been created under this chapter. 

SECTION 19.  Amends Section 54.021, Water Code, by adding Subsection (f)
to require TCEQ, if TCEQ grants the petition requesting the creation of a
district, within 15 days after the date of  the order, to file with the
county clerk, for filing in the county deed records of each county in
which a part of the district is located, the order creating the district.
Requires the filing to explain that the order creating the district to be
confirmed and ratified by an election. 

SECTION 20.  Repealer: Section 51.045, Water Code (Conservation of a
District Operating Under this Chapter to a Fresh Water Supply District). 

SECTION 21.  (a) Makes application of Sections 49.452(b), (c), and (d),
Water Code, as amended by this Act, prospective. 

(b) Requires TCEQ, a commissioners court, or a governing body, as
appropriate, not later than September 16, 2003, to comply with the filing
requirements of Sections 51.021(d), 53.0196, and 54.021(f), Water Code, as
added by this Act, and Section 51.032(b), Water Code, as amended by this
Act, if before September 1, 2003, TCEQ, a county commissioners court, or
the governing body of a district by order has granted a petition for or
authorized the creation or division of a water control and improvement
district, fresh water supply district, or municipal utility district, as
applicable, subject to a confirmation election, and the election has not
been held before that date. 

(c) Makes application of Sections 51.040(b), 51.041(a), 51.042, and
51.044(a) and (b), Water Code, as amended by this Act, and Sections
51.040(c), 51.0402, and 51.0422, and Chapter 53G, Water Code, as added by
this Act, prospective. 

(d) Makes application of Sections 51.749(a) and 53.029(b), Water Code, as
amended by this Act, prospective. 

(e) Makes application of Sections 53.016 and 53.019(a), Water Code, as
amended by this Act, and Section 53.0195, Water Code, as added by this
Act, prospective to the effective date of Sections 12, 13, and 14. 

SECTION 22.  (a) Effective date: September 1, 2003, except as provided by
Subsection (b). 

(b) Effective date: upon passage or September 1, 2003, for Sections 12,
13, and 14.