HBA-RBT, NMO C.S.H.B. 3797 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3797
By: Hartnett
Natural Resources
4/26/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, the Dallas County Utility and Reclamation District (district),
located completely within the City of Irving, has an elected board of
directors.  Because the City of Irving is significantly increasing its
financial commitment to the operation of the district, the district desires
that the City Council of the City of Irving (city council) appoint its
board of directors and subject directors to higher eligibility standards.
C.S.H.B. 3797 requires the city council to appoint the district's  five
member board of directors, rather than the board standing for election.
This bill also modifies director eligibility standards and makes certain
other changes.      

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 5, Chapter 628, Acts of the 68th Legislature,
Regular Session, 1983, as follows: 

Sec. 5.  Requires that the office of a director of the Dallas County
Utility and Reclamation District (district), if the director ceases to
possess  the prescribed qualifications, be declared vacant by the board of
directors and requires that the director's successor be appointed by the
City Council of the City of Irving (city council), rather than the
remaining directors. Requires each director be at least 18 years of age and
possess one of four qualifications. Includes as two of those qualifications
being an agent, employee, officer, or director of any individual,
corporation, trust, or partnership that owns or leases real property within
the district, or being a resident of the City of Irving.  Requires that at
least three of the five directors be qualified as directors under the
provisions of Section 49.052(a) (relating to the disqualification of
directors), Water Code, without consideration of exception.   

Requires the city council, beginning with the first day of October, 1999,
to appoint three of the five directors for terms of four years and two of
the directors for terms of two years. Requires that the directors whose
terms expire, on the first day of October of all oddnumbered years,
thereafter, be appointed by the city council, rather than elected at an
election on the first Saturday in each May.  Requires that the directors
serve for a term of four years, rather than one year, and until their
successors are appointed and take office.  Deletes provision that provides
that Section 50.026, Water Code, does not apply to the district. Authorizes
the city council to remove and replace any of the directors appointed by it
at any time without cause.  Limits the liability of the City of Irving
concerning the district. Requires that each director receive a per diem
payment of $50 per regular and special board and committee meetings, rather
than meeting.   
 
SECTION 2.  Amends Section 14, Chapter 628, Acts of the 68th Legislature,
Regular Session, 1983, to require the district to obtain City of Irving
approval of its annual operation and maintenance budget. 

SECTION 3.  Sets forth procedural findings.
 
SECTION 4.  Sets forth legislative findings.

SECTION 5.  Provides that Section 3 of this Act does not apply to an act,
proceeding, election, bond, or obligation the validity of which is the
subject of litigation that is pending on the effective date of this Act. 

SECTION 6.  Emergency clause.
                   Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original by redesignating SECTIONS 3 and 4
of the original to SECTIONS 4 and 3, respectively. 

The substitute differs from the original by replacing SECTION 5 of the
original (severability clause) with a new SECTION 5 relating to pending
litigation. 

The substitute differs from the original in SECTION 6 by replacing the
short emergency clause of the original with the long emergency clause.