BILL ANALYSIS

Senate Research Center	H.B. 2508
88R9187 ANG-F	By: Jetton (Kolkhorst)
	Water, Agriculture & Rural Affairs
	5/11/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Levee improvement districts (LIDs) are political subdivisions of Texas that work to provide flood protection and stormwater management services. Currently, to pay disbursements, an LID is required to get the signatures of three directors and use paper checks. This is inefficient for LIDs, considering the potential to make payments electronically.

H.B. 2508:

• Allows an LID to have a bank into which it can deposit money for disbursements and permits these disbursements to be transferred by Automatic Clearing House;
• Allows district money be wired or electronically transferred to vendors or other authorized accounts not in the name of the district; and
• Amends the Water Code by adding Section 57.178, relating to the disbursement of LID money, to Subchapter F, Chapter 57, Water Code.

H.B. 2508 amends current law relating to the disbursement of money by a levee improvement district.

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 Subchapter F, Chapter 57, Water Code, by adding Section 57.178, as follows:

Sec. 57.178.  DISBURSEMENT OF DISTRICT MONEY. Authorizes the board of directors of a levee improvement district (district) by resolution, to allow:

(1)  a bank in which the district deposits money to sign disbursements;

(2)  the disbursement of district money to be transferred by Automated Clearing House (ACH); and

(3)  the wire or electronic transfer of district money to vendors or other authorized accounts not in the name of the district.

SECTION 2. Effective date: upon passage or September 1, 2023.