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.