BILL ANALYSIS

H.B. 436

By: Pitts

Special Purpose Districts

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that certain provisions of the Water Code relating to Texas Commission on Environmental Quality authority over issuance of certain water district bonds were enacted in response to abuses of certain special districts created by developers to issue bonds for the purpose of obtaining a reimbursement of infrastructure construction costs.  These parties contend that such provisions were never intended to burden responsible, well-managed utility districts that provide utility services to the public.

The interested parties further contend that a number of utility districts are currently exempt from such provisions and that the Rockett Special Utility District should be exempt as well since the district is financially solvent, has been in existence for decades, and has a joint venture with the City of Waxahachie in the ownership and operation of a water treatment plant processing 20 million gallons per day.  H.B. 436 seeks to address this issue in order to enable the district to pass on cost savings to district customers in Ellis and Dallas Counties.

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

H.B. 436 amends the Special District Local Laws Code to establish that the Rockett Special Utility District has the rights, powers, duties, and obligations of an issuer under Government Code provisions relating to obligations for certain public improvements. The bill makes statutory provisions relating to Texas Commission on Environmental Quality authority over issuance of certain water district bonds and commission supervision of projects and improvements inapplicable to the district.

EFFECTIVE DATE

September 1, 2013.