BILL ANALYSIS

Senate Research Center	S.B. 865
	By: Perry
	Agriculture, Water & Rural Affairs
	6/13/2017
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Section 36.151, Water Code, pertains to the means of disbursing funds for groundwater conservation districts (GCDs). Currently, GCDs are not statutorily authorized to make direct deposits or use online bill pay. S.B. 902, 83rd Legislature, Regular Session, 2013, gave districts governed by Chapter 49, Water Code, the ability to use direct deposit mechanisms.

S.B. 865 amends Sections 36.151(b) and (c),Water Code, by authorizing electronic direct deposit as a means of dispersing funds.

S.B. 865 amends current law relating to a groundwater conservation district's use of electronic fund transfers.

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 36.151(b) and (c), Water Code, as follows:

(b) Provides that federal reserve wire transfers or electronic fund transfers are excepted from the requirement that disbursements be signed by at least two directors. Authorizes the board of directors of a groundwater conservation district (board; district) to authorize payroll disbursements by electronic direct deposit.

(c) Authorizes the board, by resolution, to allow disbursements to be transferred by federal reserve wire system, or by electronic means, to accounts in the name of the district or accounts not in the name of the district, rather than to allow disbursements to be transferred by federal reserve wire system to accounts in the name of the district.

SECTION 2. Effective date: upon passage or September 1, 2017.