HBA-RBT H.B. 3802 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3802 By: Hilbert Natural Resources 4/5/1999 Introduced BACKGROUND AND PURPOSE Northwest Harris County is facing subsidence penalties if is no long-range plan for conversion to surface water is in place prior to the year 2003. The effective date of such penalties may be moved up to 2001. Water districts will be forced to contract for surface water or pay the penalties. The legislature may not meet again prior to the time any contractual process is begun. H.B. 3802 puts procedures in place for long-term contracts by a water district with a population of 2.8 million or more. 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 Subchapter D, Chapter 49, Water Code, by adding Section 49.1085, as follows: Sec. 49.1085. CONTRACT ELECTIONS IN COUNTY WITH POPULATION GREATER THAN 2.8 MILLION. (a) Provides that this section applies to a district located entirely in a county with a population of 2.8 million or more. (b) Requires An applicable district to obtain the approval of the Texas Natural Resources Conservation Commission (commission) before the district enters into any contract for a term that will exceed three years for the purpose of obtaining surface water for use or sale within or to the district, notwithstanding the source of funds to be used to make payments under such proposed contract. (c) Requires the commission to review a contract to which Subsection (b) applies in the same manner as a contract subject to Section 49.181 (Authority of Commission Over Issuance of District Bonds), Water Code. (d) Requires a contract approved by the commission to be subject to an approval election. (e) Provides that Section 49.182 (Commission Supervision of Projects and Improvements), Water Code, applies to a contract to which Subsection (b) applies. (f) Requires the books and records of all parties to a contract to which Subsection (b) applies to be made available for inspection by the commission and by a district with which the party has contracted as necessary for the commission to perform its duties under this section and for the district to comply with Subchapter G (Audit of Districts), Water Code. SECTION 2. Emergency clause. Effective date: upon passage.