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F I S C A L I M P A C T R E P O R T





SPONSOR: Jennings DATE TYPED: 02/25/01 HB
SHORT TITLE: Amend Water and Sanitation District Act SB 731
ANALYST: Padilla


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



LFC Files

Department of Agriculture



No Response

Attorney General

Secretary of State

Department of Environment



SUMMARY



Synopsis of Bill



Senate Bill 731 requires the first board of directors of any water and sanitation district created at the petition of a county commission to consist of five directors who are taxpaying electors, rather than simply residents, of the district.



Significant Issues



The Water and Sanitation District Act provides two ways of creating a district: 1) either at the petition of 25 percent of the taxpaying electors of a district, or 2) at the petition of a county, via the chairman of the board of county commissions. When a district is created using the first method, statute requires the first board of directors be "taxpaying electors of the district." When a district is created using the second method, current statute requires the first board of directors be "residents" of the district. Senate Bill 731 would bring the selection of a first board of directors when a district is created using the second method in line with the other selection process. Board members would have to be "taxpaying electors" rather than simply residents.



FISCAL IMPLICATIONS



This bill contains no appropriation and has no fiscal impact.



OTHER SUBSTANTIVE ISSUES



The Water and Sanitation District Act reserves to "taxpaying electors" a number of roles in a district, including voting on board members, signing petitions, etc.



"Taxpaying elector of a district" means a qualified voter who has either paid or incurred a property tax liability on property in the district in the last twelve months or a qualified voter who is purchasing real property in the district under a real estate contract where a property tax has been paid or incurred in the last twelve months. "Taxpaying electors" must be residents of the district.



LP/ar