HBA-KDB H.B. 2817 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2817
By: Lewis, Ron
Natural Resources
3/27/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Constitution provides for the establishment of water districts,
while the Water Code governs such districts.  The governance of such
districts may be more efficient if fire plans for districts are addressed,
drainage or flood control projects and services are defined, water supply
corporations are authorized to provide the same out-of-district service as
other districts,  the sale or exchange of property by districts is
addressed, septic systems are prohibited, prevailing wage rates are
established, and districts are authorized to add and exclude land.  House
Bill 2817 provides for more efficient governance of water districts by
implementing these changes and provides for penalties. 

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. 

ANALYSIS

House Bill 2817 amends the Water Code to authorize a general law district
(district) to submit to the voters of the district the proposition of
whether the district should implement a plan for a fire department to be
funded by the issuance of bonds and other obligations (Sec. 49.102). 

The bill authorizes a district that is authorized by law to engage in
drainage or flood control activities  to include among the district's land,
works, improvements, facilities, plants, equipment, and appliances the
following areas and projects associated with drainage or flood control
projects of the district: 

 _stormwater retention or detention lands and projects;

 _sedimentation basins or other stormwater quality control facilities or
structures; 

 _floodplain and wetlands mitigation lands and projects;

 _habitat reconstruction or restoration lands and projects; and
 
 _any temporary, permanent, or constant-or-variable-level impoundments of
water related to drainage or flood control projects (Sec. 49.211). 

The bill authorizes a water supply corporation (corporation), in addition
to a district, to provide services or facilities outside the district or
corporation.  The bill authorizes the corporation, on approval by the Texas
Natural Resource Conservation Commission (TNRCC) of a service area
amendment to serve an area, use the water sold by the political subdivision
under a contract to provide service to the service area of the corporation
provided the service does not affect a term of the contract relating to the
amount of water to be supplied.  A term of the contract that purports to
authorize a political subdivision to cancel a contract if the water sold to
the corporation is used outside the area agreed to by the political
subdivision is not effective to the extent that the water is used by the
corporation within an area lawfully served by the  corporation (Sec.
49.215). 

The bill authorizes a district or corporation to issue bonds, notes, or
other obligations to acquire property (Sec. 49.218). 

The bill authorizes the proceeds derived from the sale of real property, in
addition to personal property to be used for any lawful purpose if the
district does not have any outstanding bonds (Sec. 49.226). 

The bill authorizes a district that operates a wastewater collection system
to serve land within its boundaries by rule to prohibit the installation of
private on-site wastewater holding or treatment facilities on land within
the district that is not served by the district's wastewater collection
system.  The bill prohibits a district from requiring a property owner who
has already installed an on-site wastewater holding or treatment facility
to connect to the district's wastewater collection system.  The bill
requires a district that prohibits such an installation to agree to pay the
owner of a particular tract the costs of connecting the tract to the
district's wastewater collection system if the distance along a public
right-of-way or utility easement from the nearest point of the district's
wastewater collection system to the boundary line of the tract requiring
wastewater collection services is 300 feet or more, subject to commission
rules regarding reimbursement of those costs (Sec. 49.234). 

The bill provides that the payment, performance, and bid bonding
requirements for a construction work contract do not apply to contracts for
the purchase of equipment, materials, and machinery not otherwise
incorporated into a construction project (Sec. 49.271). 

The bill authorizes the governing board of a district (board), if changes
in plans or specifications are necessary after the performance of the
contract is begun or if it is necessary to decrease or increase the
quantity of the work to be performed or of the materials, equipment, or
supplies to be furnished, to approve change orders making the changes.  The
bill prohibits the original contract price from being increased by more
than 10 percent of the aggregate of those change orders.  The board is not
required to advertise or seek competitive bids for the repair of district
facilities if the scope or extent of the repair work cannot be readily
ascertained or if the nature of the repair work does not readily lend
itself to competitive bidding (Sec. 49.273). 

The bill authorizes a district located wholly or partially within one or
more municipalities or within the extraterritorial jurisdiction of one or
more municipalities, in addition to the alternative procedures set forth in
provisions relating to determination of prevailing wage rates, to establish
its prevailing wage rate for public works by adopting the prevailing wage
rate of one of the municipalities or the county in which the district is
located, and authorizes a district not located wholly or partially within
the extraterritorial jurisdiction of any municipality to establish the
district's prevailing wage rate by adopting the wage rate of the county in
which the district is located (Sec. 49.279). 

The bill authorizes a district to add or exclude land after a district is
created by order of TNRCC or another governmental entity or by special Act
of the legislature and before a confirmation election is held.  The bill
requires such an election, if land is added or excluded to the district, to
confirm the district as modified (Sec. 49.315). 

Provisions relating to unclaimed property do not apply to any personal
property held by a district that has not been dissolved by order of TNRCC
(Sec. 49.327). 

The bill authorizes a district, if approved by a majority of the members of
the board, to enter into a contract with any person for the joint
construction, ownership, or operation of any property, works, improvements,
facilities, plants, equipment, or appliances used to accomplish any purpose
or function of the district and to purchase an interest in any project used
for any purpose or function of the district, as well as to enter into a
contract with any person for the performance of any purpose or function of
the district.  A joint contract entered into by a district and amendments
to that contract must be in writing and signed by each party or by an
authorized representative of each party.  A district has the right to
conduct contract elections  without the approval of the executive director
of TNRCC if all land that would be subject to the contract election was in
the boundaries of a district that was a party to an agreement with a
municipality before September 1, 1997, calling for the issuance of district
bonds for road or bridge improvements and the contract is approved by the
municipality that is a party to the agreement (Sec. 51.149). 

The bill provides that it is a Class C misdemeanor if a person violates a
regulation adopted by a district (Sec. 51.131).  

EFFECTIVE DATE

September 1, 2001.